<PAGE>
[LOGO OF NEW YORK LIFE]
NEW YORK LIFE INSURANCE COMPANY
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
(A DELAWARE CORPORATION)
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51 Madison Avenue, New York, N.Y. 10010
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To the Owners of The Facilitator (R) Policies:
I am pleased to present the unaudited Semi-Annual Report for The
Facilitator (R) and the MFA Series Fund, Inc. for the six month period ended
June 30, 1995.
POSITIVE OUTLOOK
The first half of 1995 was a time for recovering from the turmoil created
last year when the Federal Reserve initiated six interest rate hikes. Never-
theless, by historical standards, the Federal funds rate is still quite low,
leaving room for the opportunity for continued economic growth. Last year's
increasing interest rate environment concerned those invested in the markets.
The returns on investments were less than expected and left many fearful that
they should have "played it safe" with less volatile investments.
This year, short-term and long-term interest rates have fallen in response
to a slowing economy and decreased inflationary pressures. The U.S. stock and
bond markets have moved up strongly, although the question remains whether
they are moving too far, too fast. Although it is possible that the Federal
funds rate will be decreased during the second half of the year, indicators
are still pointing to a "soft landing" by the end of this year or early 1996.
STAY COMMITTED TO YOUR GOAL
Policyowners who left their money in the markets are beginning to see posi-
tive returns. Although the portfolios did not have a complete turn-around,
their returns were more than modest.
Informed individuals state that one of the keys to success in the markets is
patience. Many of our policyholders who continued with their investment strat-
egies even when things looked dismal are now learning what can be accomplished
through a commitment to a long-term investment strategy and why these types of
investments are often an integral part of retirement planning.
LOOKING AHEAD IN 1995
The remaining half of the year looks to be one of optimism for continued
growth in the stock and bond markets. Congress seems to have renewed concern
over the deficit and our low savings rate and is trying to do something about
these problems. As part of their effort, work continues on balancing the bud-
get. A balanced budget may mean low interest rates, which can in turn, create
a favorable environment for investments in stocks and bonds.
<PAGE>
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On the following pages you will find reports from each of the Portfolio Man-
agers of the MFA Series Fund, Inc. that are available in The Facilitator (R).
/s/ Lee M. Gammill, Jr.
Lee M. Gammill, Jr.
President
NEW YORK LIFE INSURANCE AND ANNUITY
CORPORATION
2
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MACKAY-SHIELDS FINANCIAL CORPORATION
ADVISER'S REPORT
The U.S. stock market posted its best first half performance since 1987 dur-
ing the six months ended June 30, 1995. Broad market averages enjoyed stellar
returns. The S&P 500* gained 20.21%, the Dow Jones Industrial Average gained
20.42%, and NASDAQ** gained 24.14% (all including dividends). Although the in-
dexes were hard to beat, U.S. stock mutual fund investors found few reasons to
complain. Stock funds enjoyed their best first quarter in two years, and their
best second quarter in two and one half years with stock funds as a group
posting first half average gains of 16.63%. In only six months, the average
stock fund investor reaped a year and a half of gains, based on the historical
returns on stocks of about 10% a year. This rebound vindicated those long-term
investors who stuck to their guns during a somewhat dismal 1994, when the av-
erage U.S. stock fund lost money. The bond market also staged an impressive
rally during the first half, with the average taxable bond fund gaining 9.11%.
This rebound was especially noteworthy in light of the fact that 1994 had been
the worst bond market in 20 years. With the dollar's slide arrested during the
second quarter, foreign stock funds generally bounced back in the second quar-
ter, after losing money during the first quarter.
One of the most intriguing aspects of the powerful U.S. stock and bond mar-
ket surges is that the mood of market participants was generally gloomy at the
beginning of the year. The markets had to contend with many concerns, such as
too weak an economy (good for interest rates, but bad for earnings in the
event of a recession), too strong an economy (more Fed tightening), overhang-
ing inventories, and/or some unforeseen surprising burst of inflation. In
fact, the economy weakened enough for rates to decline, but not enough to in-
duce a recession. Inflation remained subdued. Some companies did, in fact, ex-
perience an inventory correction, but improved inventory management and the
use of sophisticated technology helped to reduce inventory levels. Talk of a
Fed funds rate cut helped to spark the second quarter bond rally.
When bonds are booming, stocks generally follow. Falling interest rates pro-
pelled stocks to record levels. Earnings remained strong during the first half
of 1995. Market leadership can be summed up in one word: technology. Although
historically, technology stocks have tended to soar one year and plummet the
next, some believe that this run-up is different because of a productivity
revolution which is replacing people with technology. Structural changes are
occurring on a global scale and demand is expected to remain high for some
time to come. Although profit taking is bound to occur at some point, funda-
mentals appear to be keeping pace with multiple expansion.
With hindsight we believe we experienced a "growth recession" during the
first half of the year in sectors such as autos and housing. With the inven-
tory correction behind us, probably a steady economy ahead, and little evi-
dence of seemingly an alarming uptick in inflation, the stock market environ-
ment could remain relatively benign during the second half of the year. With
the Dow having
3
<PAGE>
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gained 1,000 points in seven short months, the market is a little more expen-
sive than before; nevertheless, if earnings hold up, if inflation remains low,
and if interest rates do not back up sharply, the valuation level of the mar-
ket is not excessive by substantiate standards. Having said that, investors
should not expect the second half of the year to match the exceptionally
strong first half.
With respect to the fixed income markets, it appears that there may be a
soft landing, which suggests that the good news is already discounted in bond
prices. The risk to the bond market is an increase in economic growth which we
expect during the second half, sparked by a seasonal expansion of exports and
auto sales. With inventories now trimmed, housing and auto sales may possibly
accelerate. Moreover, since production levels were cut much more sharply than
in the past during the first half slowdown, any increase in demand should flow
through fairly quickly to increased production. Nevertheless, the recent Fed
easing took the market by storm, with considerable rallies in short-term and
long-term maturities. Many analysts point out that there has never been a sin-
gle Fed move in one direction not followed by more actions. Future moves will
depend upon economic activity, but for now, the bond markets are currently
discounting more ease. While the strong productivity gains harnessed during
this cycle may preclude the possibility of a major resurgence in inflation,
some risk of a cyclical rise cannot be ruled out later in the year.
Ravi Akhoury
Chairman and Chief Executive Officer
MacKay-Shields Financial Corporation
* "Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are reg-
istered trademarks of the Standard & Poor's Corporation. The New York Life
MFA Series Fund, Inc. is neither sponsored by nor affiliated with Standard
& Poor's Corporation. The S&P 500 is an unmanaged index considered gener-
ally representative of the U.S. stock market.
** "NASDAQ Composite Index" is an unmanaged index and is considered to be gen-
erally representative of the U.S. small capitalization stock market.
4
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NEW YORK LIFE INSURANCE COMPANY
ADVISER'S REPORT
1995 has produced positive results for investors. The fixed income and stock
market generated double digit returns; the stock market in particular made and
continues to make record highs. Just as last year's market malaise resulted
from a move by the Federal Reserve to tighten the monetary environment, this
year's robust growth resulted from the Fed's neutrality in the face of an ap-
parent slowdown in economic growth. While the Fed did not act to lower rates
until after the end of the first half, the market anticipated the loosening
and rates fell throughout the quarter. This drop in rates, combined with con-
tinued corporate profit growth, provided significant support to the stock mar-
ket.
Economic growth continues to be led by capital investment rather than con-
sumer spending, allowing inflationary pressures to remain modest. The soft
landing of the economy appears real and investors are beginning to look beyond
it to accelerated growth in 1996. The risk to investors in this scenario is
that ultimately inflationary pressures will pick up, interest rates will in-
crease, and stock market valuations will be challenged. Our view is that the
near-term outlook remains favorable to investors as the economy should con-
tinue to provide a positive backdrop for equity valuations.
Concerns have been raised about stock market valuations with earnings and
profit margins in the fifth year of expansion. We see that the potential for
powerful profit growth with modest sales increases, as corporations continue
to leverage their revenue growth with very tight expense structures, is likely
for many industries, particularly late cycle industrials and capital goods
manufacturers. The technology sector should continue to enjoy high levels of
sales and earnings growth combined with expanding valuations. Other sectors,
such as financials, are in the midst of powerful consolidation trends and
looking forward, we believe can provide the opportunity for yielding impres-
sive returns for investors.
With respect to the bond market, we envision prices remaining within a
fairly narrow trading range over the near-term. While the Fed recently reduced
rates slightly, it is difficult to determine when the next change in rates
will occur. In any event, the market has priced the lower rates into the mar-
ket, dampening any expectation of large capital gains.
Clearly, with the stock market up over 20% for the first six months of the
year, and the bond market's impressive performance, investors should pause and
re-evaluate their strategies. We have done so, and remain positive. We believe
our approach can provide the opportunity for continued good results. We will,
though, continue to watch the fundamentals very carefully as the year pro-
gresses and alter our outlook and strategies as appropriate.
Jean Hoysradt
Senior Vice President in charge of
the Investment Department
New York Life Insurance Company
5
<PAGE>
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CASH MANAGEMENT PORTFOLIO
The money markets were fairly stable during the first six months as the Fed-
eral Reserve remained on hold and short rates remained pegged to the Federal
Funds rate. By the end of the second quarter, longer maturities anticipated an
easing Federal Reserve and traded below three month yields. During the first
half of 1995, the Portfolio returned 2.82%* vs. 2.73% for the average Lipper**
money market fund.
Ravi Akhoury and Frank Salem
Portfolio Managers
MacKay-Shields Financial Corporation
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
** Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
6
<PAGE>
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BOND PORTFOLIO
The Bond Portfolio registered a double digit return of +11.25%* in the first
half of 1995. This compares to a return of +11.66% for our benchmark index,
the Merrill Lynch Corporate and Government Master Index.**
1995 began with investors positioned for a continuation of 1994's bear mar-
ket sell off. As signs of economic weakness began to appear, the market
quickly reversed course and rallied dramatically. Investors began to antici-
pate Federal Reserve easing and this fueled the market's momentum. In the
first six months of the year the yield on the five and ten year US Treasury
securities decreased by 186 and 162 basis points respectively. We began the
year positioned for a negative bond market while still overweighted in corpo-
rate securities. This position caused us to underperform our benchmark early
in the year. We have since restructured our portfolio, where we continue to
overweight corporate securities and have lengthened the portfolio's duration.
These moves have contributed to our total return performance in the second
quarter.
Looking ahead, we expect moderate economic growth and reduced interest rate
volatility in the second half of the year. We expect short-term corporate
bonds to outperform Treasuries and will continue to overweight this sector. We
will adjust the portfolio over the second half of the year opportunistically,
seeking to outperform the market.
Albert R. Corapi, Jr.
Portfolio Manager
New York Life Insurance Company
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
** The Merrill Lynch Corporate and Government Master Index is an unmanaged in-
dex consisting of issues of the U.S. Government and agencies as well as in-
vestment-grade corporate securities. Results assume the reinvestment of all
income and capital gains distributions.
7
<PAGE>
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GROWTH EQUITY PORTFOLIO
The Growth Equity Portfolio generated strong performance for the six-month
period ended June 30, 1995. While impressive in absolute terms, the Portfolio
lagged the average growth stock fund as ranked by Lipper Analytical Services*
and the S&P 500**. Though the Portfolio benefitted in the first half of the
year from its stock selection in technology issues and exposure to later cycle
industrials and capital goods companies, the Portfolio's relative performance
was adversely affected by its underweighting of the technology and financial
sectors, which led the market during this period.
The equity market exceeded the expectations of most investors in the first
half of the year primarily because of the sharp drop in interest rates and ro-
bust corporate earnings. The fall in bond yields caused relative equity valua-
tions to increase because of the relationship between stock prices and inter-
est rates. The supply/demand environment for equities also improved due to
continued strong demand by equity mutual funds, tight supply caused by an in-
creased level of merger and acquisition activity, an increased number of share
repurchase programs and a light underwriting calendar.
Looking forward, we continue to see favorable fundamentals in the equity
market. Current valuation levels are not excessive by historical standards and
the continued benign interest rate and inflation environment should offer com-
panies the opportunity for strong earnings growth, though most likely at a
less torrid pace than we saw in 1994 and the first half of this year. Even as
corporate earnings growth moderates, the low interest rate environment should
cause equity valuations to expand throughout the market generally, and for es-
tablished growth companies in particular.
Our primary strategy of investing in mid-to-large capitalization growth
stocks, along with the deployment of the Portfolio's cash, should result in an
improvement of our relative performance as the year progresses.
James Agostisi
Portfolio Manager
New York Life Insurance Company
* Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
** "Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are reg-
istered trademarks of the Standard & Poor's Corporation. The New York Life
MFA Series Fund, Inc. is neither sponsored by nor affiliated with Standard
& Poor's Corporation. The S&P 500 is an unmanaged index considered gener-
ally representative of the U.S. stock market.
8
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
9
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
COMMON STOCK BOND MONEY MARKET
INVESTMENT INVESTMENT INVESTMENT
DIVISIONS DIVISIONS DIVISIONS
------------------------- ------------------------- -------------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
ASSETS: ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investment in New York
Life MFA Series Fund,
Inc., at net asset
value (Identified
Cost: $72,667,703;
$123,071,580;
$43,184,072;
$69,181,542;
$8,952,267;
$11,619,895,
respectively)......... $ 81,349,646 $145,228,686 $ 45,123,742 $ 73,418,284 $ 8,951,919 $ 11,619,381
LIABILITIES:
Liability for mortality
and expense risk
charges............... 256,666 645,621 146,980 327,388 27,736 51,443
------------ ------------ ------------ ------------ ------------ ------------
Total equity.......... $ 81,092,980 $144,583,065 $ 44,976,762 $ 73,090,896 $ 8,924,183 $ 11,567,938
============ ============ ============ ============ ============ ============
TOTAL EQUITY REPRESENTED BY:
Equity of Policyowners:
Variable accumulation
units outstanding:
2,754,618; 5,202,119;
1,671,505; 2,877,148;
490,501; 673,460,
respectively.......... $ 81,092,980 $144,583,065 $ 44,976,762 $ 73,090,896 $ 8,924,183 $ 11,567,938
============ ============ ============ ============ ============ ============
Variable accumulation
unit value............ $ 29.44 $ 27.79 $ 26.91 $ 25.40 $ 18.19 $ 17.18
============ ============ ============ ============ ============ ============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
10
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
STATEMENT OF OPERATIONS MFA SEPARATE ACCOUNT I
For the six months ended June 30, 1995 TAX-QUALIFIED POLICIES
(Unaudited)
<TABLE>
<CAPTION>
COMMON STOCK BOND MONEY MARKET
INVESTMENT INVESTMENT INVESTMENT
DIVISIONS DIVISIONS DIVISIONS
------------------------ ------------------------ ------------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income........ $ 10,746 $ 19,294 $ 10,371 $ 16,438 $ 243,453 $ 325,891
Mortality and expense
risk charges.......... (475,136) (1,193,442) (280,129) (615,883) (54,178) (101,414)
----------- ----------- ----------- ----------- ----------- -----------
Net investment income
(loss)............... (464,390) (1,174,148) (269,758) (599,445) 189,275 224,477
----------- ----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS):
Proceeds from sale of
investments........... 4,392,655 5,586,374 5,267,140 3,538,266 1,449,006 1,006,605
Cost of investments
sold.................. (4,260,146) (4,492,777) (4,970,204) (3,786,236) (1,449,079) (1,006,656)
----------- ----------- ----------- ----------- ----------- -----------
Net realized gain
(loss)
on investments....... 132,509 1,093,597 296,936 (247,970) (73) (51)
Change in unrealized
appreciation/
depreciation on
investments........... 10,722,889 18,404,360 4,525,130 7,826,378 80 63
----------- ----------- ----------- ----------- ----------- -----------
Net gain on
investments.......... 10,855,398 19,497,957 4,822,066 7,578,408 7 12
----------- ----------- ----------- ----------- ----------- -----------
Decrease attributable
to funds of New York
Life Insurance and
Annuity Corporation
retained by Separate
Account............... (24,490) (61,411) (9,372) (20,376) (561) (1,052)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in total
equity resulting from
operations........... $10,366,518 $18,262,398 $ 4,542,936 $ 6,958,587 $ 188,721 $ 223,437
=========== =========== =========== =========== =========== ===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
11
<PAGE>
STATEMENT OF CHANGES IN TOTAL EQUITY
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
<TABLE>
<CAPTION>
COMMON STOCK
INVESTMENT DIVISIONS
------------------------------------------------------
SINGLE PREMIUM FLEXIBLE PREMIUM
POLICIES POLICIES
-------------------------- --------------------------
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
TOTAL EQUITY:
Operations:
Net investment income
(loss)................... $ (464,390) $ 92,864 $ (1,174,148) $ (474,146)
Net realized gain (loss)
on investments........... 132,509 817,779 1,093,597 1,020,935
Realized gain distribution
received................. -- 4,264,931 -- 7,576,411
Change in unrealized
appreciation/depreciation
on investments........... 10,722,889 (5,189,696) 18,404,360 (8,829,255)
Increase (decrease)
attributable to funds of
New York Life Insurance
and Annuity Corporation
retained by Separate
Account.................. (24,490) 283 (61,411) 842
------------ ------------ ------------ ------------
Net increase (decrease)
in total equity
resulting
from operations......... 10,366,518 (13,839) 18,262,398 (705,213)
------------ ------------ ------------ ------------
Contributions and
withdrawals:
Policyowners' premium
payments................. 788,825 2,023,353 3,050,446 6,029,109
Policyowners' surrenders.. (3,608,901) (6,738,897) (6,184,203) (8,081,231)
Policyowners' annuity and
death benefits........... (264,374) (546,529) (409,908) (386,348)
Net transfers from (to)
Fixed Account............ (154,323) 638,626 (394,615) (287,661)
Transfers between
Investment Divisions..... 587,654 3,048,639 (23,012) 2,187,478
------------ ------------ ------------ ------------
Total contributions and
withdrawals (net)....... (2,651,119) (1,574,808) (3,961,292) (538,653)
------------ ------------ ------------ ------------
Increase (decrease) in
total equity........... 7,715,399 (1,588,647) 14,301,106 (1,243,866)
TOTAL EQUITY:
Beginning of period....... 73,377,581 74,966,228 130,281,959 131,525,825
------------ ------------ ------------ ------------
End of period............. $ 81,092,980 $ 73,377,581 $144,583,065 $130,281,959
============ ============ ============ ============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
12
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNT I
TAX-QUALIFIED POLICIES
<TABLE>
<CAPTION>
BOND MONEY MARKET
INVESTMENT DIVISIONS INVESTMENT DIVISIONS
- ------------------------------------------------------- ------------------------------------------------------
SINGLE PREMIUM FLEXIBLE PREMIUM SINGLE PREMIUM FLEXIBLE PREMIUM
POLICIES POLICIES POLICIES POLICIES
- --------------------------- -------------------------- -------------------------- --------------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (269,758) $ 2,462,660 $ (599,445) $ 3,442,645 $ 189,275 $ 248,621 $ 224,477 $ 255,039
296,936 306,618 (247,970) (35,527) (73) (281) (51) (228)
-- -- -- -- -- -- -- --
4,525,130 (5,232,040) 7,826,378 (7,293,567) 80 (422) 63 (571)
(9,372) 3,301 (20,376) 6,561 (561) (1,177) (1,052) (2,053)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
4,542,936 (2,459,461) 6,958,587 (3,879,888) 188,721 246,741 223,437 252,187
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
148,710 960,269 1,541,953 3,234,303 13,240 253,250 345,896 529,860
(2,485,002) (5,150,646) (3,346,510) (5,727,805) (535,575) (1,550,036) (829,560) (1,596,124)
(407,732) (785,608) (283,752) (238,326) (90,520) (162,855) (62,614) (80,717)
(612,240) (907,422) (305,004) (797,068) (49,779) (747,048) (107,566) (328,009)
(1,259,589) (1,869,279) (329,542) (1,383,708) 677,171 (1,200,268) 352,554 (803,770)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(4,615,853) (7,752,686) (2,722,855) (4,912,604) 14,537 (3,406,957) (301,290) (2,278,760)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(72,917) (10,212,147) 4,235,732 (8,792,492) 203,258 (3,160,216) (77,853) (2,026,573)
45,049,679 55,261,826 68,855,164 77,647,656 8,720,925 11,881,141 11,645,791 13,672,364
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 44,976,762 $ 45,049,679 $ 73,090,896 $ 68,855,164 $ 8,924,183 $ 8,720,925 $ 11,567,938 $ 11,645,791
============ ============ ============ ============ ============ ============ ============ ============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
COMMON STOCK BOND MONEY MARKET
INVESTMENT INVESTMENT INVESTMENT
DIVISIONS DIVISIONS DIVISIONS
----------------------- ----------------------- -----------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in New York
Life MFA Series Fund,
Inc., at net asset
value (Identified
Cost: $82,659,462;
$10,512,250;
$61,385,272;
$6,864,362;
$8,841,471;
$1,204,010,
respectively)......... $91,133,690 $12,156,968 $63,763,776 $ 7,374,685 $ 8,841,235 $ 1,203,959
LIABILITIES:
Liability for mortality
and expense risk
charges............... 288,917 53,713 202,942 32,883 30,262 5,433
----------- ----------- ----------- ----------- ----------- -----------
Total equity.......... $90,844,773 $12,103,255 $63,560,834 $ 7,341,802 $ 8,810,973 $ 1,198,526
=========== =========== =========== =========== =========== ===========
TOTAL EQUITY REPRESENTED BY:
Equity of Policyowners:
Variable accumulation
units outstanding:
3,084,773; 435,476;
2,353,254; 288,553;
484,276; 69,776,
respectively.......... $90,812,565 $12,103,255 $63,560,834 $ 7,341,802 $ 8,810,973 $ 1,198,526
Annuity Reserve........ 32,208 -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total Equity.......... $90,844,773 $12,103,255 $63,560,834 $ 7,341,802 $ 8,810,973 $ 1,198,526
=========== =========== =========== =========== =========== ===========
Variable accumulation
unit value............ $ 29.44 $ 27.79 $ 27.01 $ 25.44 $ 18.19 $ 17.18
=========== =========== =========== =========== =========== ===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
14
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
STATEMENT OF OPERATIONS MFA SEPARATE ACCOUNT II
For the six months ended June 30, 1995 NON-QUALIFIED POLICIES
(Unaudited)
<TABLE>
<CAPTION>
COMMON STOCK BOND MONEY MARKET
INVESTMENT INVESTMENT INVESTMENT
DIVISIONS DIVISIONS DIVISIONS
------------------------ ------------------------ ------------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income........ $ 12,071 $ 1,604 $ 14,241 $ 1,650 $ 283,302 $ 35,076
Mortality and expense
risk charges.......... (533,687) (99,031) (385,109) (62,022) (63,015) (10,914)
----------- ----------- ----------- ----------- ----------- -----------
Net investment income
(loss)............... (521,616) (97,427) (370,868) (60,372) 220,287 24,162
----------- ----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS):
Proceeds from sale of
investments........... 4,372,698 511,157 5,560,871 485,068 2,909,720 185,592
Cost of investments
sold.................. (3,535,817) (495,508) (5,295,420) (488,528) (2,909,850) (185,602)
----------- ----------- ----------- ----------- ----------- -----------
Net realized gain
(loss)
on investments....... 836,881 15,649 265,451 (3,460) (130) (10)
Change in unrealized
appreciation/
depreciation on
investments........... 11,362,741 1,601,909 6,356,284 766,187 149 11
----------- ----------- ----------- ----------- ----------- -----------
Net gain on
investments.......... 12,199,622 1,617,558 6,621,735 762,727 19 1
----------- ----------- ----------- ----------- ----------- -----------
Decrease attributable
to funds of New York
Life Insurance and
Annuity Corporation
retained by Separate
Account............... (27,488) (5,093) (12,825) (2,053) (672) (114)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in total
equity resulting from
operations........... $11,650,518 $ 1,515,038 $ 6,238,042 $ 700,302 $ 219,634 $ 24,049
=========== =========== =========== =========== =========== ===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
15
<PAGE>
STATEMENT OF CHANGES IN TOTAL EQUITY
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
<TABLE>
<CAPTION>
COMMON STOCK
INVESTMENT DIVISIONS
------------------------------------------------------
SINGLE PREMIUM FLEXIBLE PREMIUM
POLICIES POLICIES
-------------------------- --------------------------
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
TOTAL EQUITY:
Operations:
Net investment income
(loss)................... $ (521,616) $ 103,708 $ (97,427) $ (40,978)
Net realized gain (loss)
on investments........... 836,881 749,142 15,649 91,321
Realized gain distribution
received................. -- 4,761,829 -- 628,248
Change in unrealized
appreciation/depreciation
on investments........... 11,362,741 (5,732,400) 1,601,909 (741,013)
Increase (decrease)
attributable to funds of
New York Life Insurance
and Annuity Corporation
retained by
Separate Account......... (27,488) 357 (5,093) 77
------------ ------------ ------------ ------------
Net increase (decrease)
in total equity
resulting
from operations......... 11,650,518 (117,364) 1,515,038 (62,345)
------------ ------------ ------------ ------------
Contributions and
withdrawals:
Policyowners' premium
payments................. 135,476 1,073,571 208,456 409,415
Policyowners' surrenders.. (2,913,964) (6,124,267) (350,986) (674,167)
Policyowners' annuity and
death benefits........... (590,148) (612,290) (66,336) (68,288)
Net transfers from (to)
Fixed Account............ (100,324) 1,140,643 (32,134) 1,457
Transfers between
Investment Divisions..... 708,770 3,932,462 32,358 131,967
------------ ------------ ------------ ------------
Total contributions and
withdrawals (net)....... (2,760,190) (589,881) (208,642) (199,616)
------------ ------------ ------------ ------------
Increase (decrease) in
total equity........... 8,890,328 (707,245) 1,306,396 (261,961)
TOTAL EQUITY:
Beginning of period....... 81,954,445 82,661,690 10,796,859 11,058,820
------------ ------------ ------------ ------------
End of period............. $ 90,844,773 $ 81,954,445 $ 12,103,255 $ 10,796,859
============ ============ ============ ============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
16
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNT II
NON-QUALIFIED POLICIES
<TABLE>
<CAPTION>
BOND MONEY MARKET
INVESTMENT DIVISIONS INVESTMENT DIVISIONS
- ------------------------------------------------------- ------------------------------------------------------
SINGLE PREMIUM FLEXIBLE PREMIUM SINGLE PREMIUM FLEXIBLE PREMIUM
POLICIES POLICIES POLICIES POLICIES
- --------------------------- -------------------------- -------------------------- --------------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (370,868) $ 3,367,352 $ (60,372) $ 348,088 $ 220,287 $ 291,453 $ 24,162 $ 27,125
265,451 23,325 (3,460) (36,349) (130) (302) (10) (18)
-- -- -- -- -- -- -- --
6,356,284 (6,935,305) 766,187 (712,093) 149 (387) 11 (61)
(12,825) 4,808 (2,053) 675 (672) (1,328) (114) (217)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
6,238,042 (3,539,820) 700,302 (399,679) 219,634 289,436 24,049 26,829
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
50,896 341,504 80,093 241,581 (58,872) 146,899 21,645 26,244
(3,188,622) (6,533,331) (325,657) (637,948) (1,175,230) (1,671,840) (112,511) (167,754)
(521,538) (606,580) (55,066) (52,313) (525,206) (72,668) (4,122) (9,099)
(347,346) (2,217,595) (24,853) (73,888) (234,063) (696,713) (2,662) (29,838)
(548,296) (4,570,224) (21,778) (96,250) (161,089) 654,200 (10,581) (35,762)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(4,554,906) (13,586,226) (347,261) (618,818) (2,154,460) (1,640,122) (108,231) (216,209)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
1,683,136 (17,126,046) 353,041 (1,018,497) (1,934,826) (1,350,686) (84,182) (189,380)
61,877,698 79,003,744 6,988,761 8,007,258 10,745,799 12,096,485 1,282,708 1,472,088
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 63,560,834 $ 61,877,698 $ 7,341,802 $ 6,988,761 $ 8,810,973 $ 10,745,799 $ 1,198,526 $ 1,282,708
============ ============ ============ ============ ============ ============ ============ ============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
17
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
NOTE 1--Organization and Accounting Policies:
- -------------------------------------------------------------------------------
New York Life Insurance and Annuity Corporation MFA Separate Account I
("Separate Account I") and New York Life Insurance and Annuity Corporation MFA
Separate Account II ("Separate Account II") were
established on May 27, 1983, under Delaware law by New York Life Insurance and
Annuity Corporation, a wholly owned subsidiary of New York Life Insurance
Company. These accounts were established to receive and invest net purchase
payments under Qualified Multi-Funded Retirement Annuity Policies ("Separate
Account I") and Non-Qualified Multi-Funded Retirement Annuity Policies
("Separate Account II") issued by New York Life Insurance and Annuity
Corporation. Separate Account I and Separate Account II are registered under
the Investment Company Act of 1940, as amended, as unit investment trusts. The
assets of Separate Account I and Separate Account II are invested exclusively
in shares of the New York Life MFA Series Fund, Inc. (the "MFA Fund"), a
diversified open-end management investment company, and are clearly identified
and distinguished from the other assets and liabilities of New York Life
Insurance and Annuity Corporation. Effective December 19, 1994 sales of all
such Policies were discontinued.
There are six Investment Divisions within both Separate Account I and
Separate Account II, three of which invest Single Premium Policy net purchase
payments and three of which invest Flexible Premium Policy net purchase
payments. The Common Stock Investment Divisions invest in the Growth Equity
Portfolio, the Bond Investment Divisions invest in the Bond Portfolio, and the
Money Market Investment Divisions invest in the Cash Management Portfolio. Net
purchase payments received are allocated to the Investment Divisions of
Separate Account I or Separate Account II according to Policyowner
instructions. In addition, the Policyowner has the option to transfer amounts
between the Investment Divisions of Separate Account I and Separate Account II
and/or the Fixed Account of New York Life Insurance and Annuity Corporation.
No federal income tax is payable on investment income or capital gains of
Separate Account I or Separate Account II under current federal income tax
law.
Security Valuation--The investment in the MFA Fund is valued at the net asset
value of shares of the fund portfolios, which are valued at market.
Security Transactions--Realized gains and losses from security transactions
are reported on the identified cost basis. Security transactions are accounted
for as of the date the securities are purchased or sold (trade date).
Distributions Received--Dividend income and capital gain distributions are
recorded on the ex-dividend date and reinvested in the corresponding
portfolio.
Annuity Reserves--The reserves are computed for currently payable contracts
in accordance with rates taken from approved valuation mortality tables. The
assumed interest rate is 4%, unless issued in Florida or Texas where the rate
is 3 1/2%. Separate Account II Common Stock Investment Division for Single
Premium Policies had variable annuity unit values as of June 30, 1995 and
December 31, 1994 of $1.86 and $1.66, respectively.
18
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNTS I AND II
TAX-QUALIFIED AND
NON-QUALIFIED POLICIES
- --------------------------------------------------------------------------------
NOTE 2--Investments (in 000's):
- --------------------------------------------------------------------------------
At June 30, 1995, the investment in the MFA Fund by the respective Investment
Divisions of Separate Account I and Separate Account II is as follows:
<TABLE>
<CAPTION>
GROWTH EQUITY CASH MANAGEMENT
PORTFOLIO BOND PORTFOLIO PORTFOLIO
--------------------- ---------------------- ---------------------
COMMON STOCK BOND MONEY MARKET
INVESTMENT DIVISIONS INVESTMENT DIVISIONS INVESTMENT DIVISIONS
--------------------- ---------------------- ---------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-
QUALIFIED POLICIES)
Number of Shares........ 4,810 8,587 3,356 5,461 8,952 11,619
Identified Cost*........ $72,668 $ 123,072 $43,184 $69,182 $8,952 $11,620
SEPARATE ACCOUNT II (NON-
QUALIFIED POLICIES)
Number of Shares........ 5,389 719 4,743 549 8,841 1,204
Identified Cost*........ $82,659 $ 10,512 $61,385 $ 6,864 $8,841 $ 1,204
</TABLE>
* The cost stated also represents the aggregate cost for federal income tax
purposes.
Transactions in MFA Fund shares for the six months ended June 30, 1995, were as
follows:
<TABLE>
<CAPTION>
GROWTH EQUITY CASH MANAGEMENT
PORTFOLIO BOND PORTFOLIO PORTFOLIO
--------------------- ---------------------- ---------------------
COMMON STOCK BOND MONEY MARKET
INVESTMENT DIVISIONS INVESTMENT DIVISIONS INVESTMENT DIVISIONS
--------------------- ---------------------- ---------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-
QUALIFIED POLICIES)
Purchases............... $ 1,277 $ 457 $ 374 $ 215 $1,651 $ 928
Proceeds from Sales..... 4,393 5,586 5,267 3,538 1,449 1,007
SEPARATE ACCOUNT II (NON-
QUALIFIED POLICIES)
Purchases............... $ 1,091 $ 206 $ 625 $ 77 $ 971 $ 101
Proceeds from Sales..... 4,373 511 5,561 485 2,910 186
</TABLE>
19
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 3--Mortality and Expense Risk Charges:
- --------------------------------------------------------------------------------
Separate Account I and Separate Account II are charged for administrative
services provided for Flexible Premium Policies, and Single and Flexible
Premium Policies are charged for the mortality and expense risks assumed by New
York Life Insurance and Annuity Corporation. These charges are made daily at an
annual rate of 1.25% of the daily net asset value for Single Premium Policies
and 1.75% of the daily net asset value for Flexible Premium Policies of each
Investment Division. The amounts of these charges retained in the Investment
Divisions represent funds of New York Life Insurance and Annuity Corporation.
Accordingly, New York Life Insurance and Annuity Corporation participates in
the results of each Investment Division ratably with the Policyowners.
- --------------------------------------------------------------------------------
NOTE 4--Distribution of Net Income:
- --------------------------------------------------------------------------------
Separate Account I and Separate Account II do not expect to declare dividends to
Policyowners from accumulated net investment income and realized gains. The
income and gains are distributed to Policyowners as part of withdrawals of
amounts (in the form of surrenders, death benefits, transfers, or annuity
payments) in excess of the net purchase payments.
20
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNTS I AND II
TAX-QUALIFIED AND
NON-QUALIFIED POLICIES
- --------------------------------------------------------------------------------
NOTE 5--Cost to Policyowners (in 000's):
- --------------------------------------------------------------------------------
At June 30, 1995, the cost to Policyowners for accumulation units outstanding,
with adjustments for net investment income, market appreciation/depreciation
and deduction for expenses is as follows:
<TABLE>
<CAPTION>
COMMON STOCK BOND MONEY MARKET
INVESTMENT DIVISIONS INVESTMENT DIVISIONS INVESTMENT DIVISIONS
---------------------- ---------------------- ----------------------
SINGLE FLEXIBLE SINGLE FLEXIBLE SINGLE FLEXIBLE
PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM PREMIUM
POLICIES POLICIES POLICIES POLICIES POLICIES POLICIES
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-
QUALIFIED POLICIES)
Cost to Policyowners (net
of withdrawals).......... $ 39,301 $ 64,658 $ 21,764 $ 37,529 $ 4,635 $ 6,561
Accumulated net investment
income................... 2,814 1,536 20,662 31,134 4,317 5,055
Accumulated net realized
gain (loss) on
investments and realized
gain distributions
received................. 30,448 56,621 758 483 (1) --
Unrealized
appreciation/depreciation
on investments........... 8,682 22,157 1,940 4,237 -- (1)
Decrease attributable to
funds of New York Life
Insurance and Annuity
Corporation retained by
Separate Account......... (152) (389) (147) (292) (27) (47)
---------- ---------- ---------- ---------- ---------- ----------
Net amount applicable to
Policyowners............. $ 81,093 $ 144,583 $ 44,977 $ 73,091 $ 8,924 $ 11,568
========== ========== ========== ========== ========== ==========
SEPARATE ACCOUNT II (NON-
QUALIFIED POLICIES)
Cost to Policyowners (net
of withdrawals).......... $ 47,414 $ 5,117 $ 31,029 $ 3,032 $ 3,746 $ 555
Accumulated net investment
income................... 2,876 151 29,274 3,706 5,100 653
Accumulated net realized
gain on investments and
realized gain
distributions received... 32,245 5,224 1,129 136 -- --
Unrealized
appreciation/depreciation
on investments........... 8,474 1,645 2,379 510 -- --
Decrease attributable to
funds of New York Life
Insurance and Annuity
Corporation retained by
Separate Account......... (164) (34) (250) (42) (35) (9)
---------- ---------- ---------- ---------- ---------- ----------
Net amount applicable to
Policyowners............. $ 90,845 $ 12,103 $ 63,561 $ 7,342 $ 8,811 $ 1,199
========== ========== ========== ========== ========== ==========
</TABLE>
21
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 6--Unit Transactions (in 000's):
- --------------------------------------------------------------------------------
Transactions in accumulation units were as follows:
<TABLE>
<CAPTION>
COMMON STOCK INVESTMENT DIVISIONS
-----------------------------------
SINGLE PREMIUM FLEXIBLE PREMIUM
POLICIES POLICIES
----------------- -----------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-QUALIFIED POLI-
CIES)
Units issued on premium payments.......... 29 80 118 250
Units redeemed on surrenders.............. (139) (276) (246) (343)
Units redeemed on annuity and death
benefits................................. (3) (8) (6) (7)
Units issued (redeemed) on net transfers
to Fixed Account......................... (6) 25 (15) (12)
Units issued (redeemed) on transfers
between
Investment Divisions..................... 21 119 (1) 91
----- ----- ----- -----
Net increase (decrease).................. (98) (60) (150) (21)
Units outstanding, beginning of period.... 2,853 2,913 5,352 5,373
----- ----- ----- -----
Units outstanding, end of period.......... 2,755 2,853 5,202 5,352
===== ===== ===== =====
SEPARATE ACCOUNT II (NON-QUALIFIED POLI-
CIES)
Units issued on premium payments.......... 5 42 8 17
Units redeemed on surrenders.............. (118) (241) (16) (28)
Units redeemed on annuity and death
benefits................................. (10) (23) (1) (3)
Units issued (redeemed) on net transfers
to Fixed Account......................... (4) 45 (1) --
Units issued (redeemed) on transfers
between
Investment Divisions..................... 26 151 1 6
----- ----- ----- -----
Net decrease............................. (101) (26) (9) (8)
Units outstanding, beginning of period.... 3,186 3,212 444 452
----- ----- ----- -----
Units outstanding, end of period.......... 3,085 3,186 435 444
===== ===== ===== =====
</TABLE>
22
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNTS I AND II
TAX-QUALIFIED AND
NON-QUALIFIED POLICIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND INVESTMENT DIVISIONS MONEY MARKET INVESTMENT DIVISIONS
- ------------------------------------ -----------------------------------
SINGLE PREMIUM FLEXIBLE PREMIUM SINGLE PREMIUM FLEXIBLE PREMIUM
POLICIES POLICIES POLICIES POLICIES
- ------------------ ----------------- ----------------- -----------------
SIX SIX SIX SIX
MONTHS YEAR MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1995 1994 1995 1994 1995 1994 1995 1994
- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
5 39 64 138 1 15 20 32
(104) (236) (144) (253) (35) (96) (53) (99)
(8) (5) (5) (3) -- (2) -- (2)
(24) (37) (13) (34) (3) (42) (6) (20)
(48) (76) (14) (59) 38 (69) 21 (48)
----- ----- ----- ----- ----- ----- ----- -----
(179) (315) (112) (211) 1 (194) (18) (137)
1,851 2,166 2,989 3,200 490 684 691 828
----- ----- ----- ----- ----- ----- ----- -----
1,672 1,851 2,877 2,989 491 490 673 691
===== ===== ===== ===== ===== ===== ===== =====
3 18 4 10 (3) 8 1 2
(135) (272) (15) (28) (91) (95) (7) (10)
(11) (22) (1) (2) (4) (4) -- (1)
(14) (92) (1) (3) (13) (39) -- (2)
(23) (185) (1) (4) (9) 37 -- (2)
----- ----- ----- ----- ----- ----- ----- -----
(180) (553) (14) (27) (120) (93) (6) (13)
2,533 3,086 303 330 604 697 76 89
----- ----- ----- ----- ----- ----- ----- -----
2,353 2,533 289 303 484 604 70 76
===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
23
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 7--Selected Per Unit Data+:
- --------------------------------------------------------------------------------
The following table presents selected per accumulation unit income and capital
changes (for an accumulation unit outstanding throughout each period) with
respect to each Investment Division of Separate Account I and Separate Account
II:
<TABLE>
<CAPTION>
SINGLE PREMIUM POLICIES
--------------------------------------------
SIX
MONTHS
COMMON STOCK INVESTMENT ENDED YEAR ENDED DECEMBER 31,
DIVISIONS JUNE 30, -----------------------------------
1995 1994 1993 1992 1991 1990
--------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-QUALI-
FIED POLICIES)
Unit value, beginning of period. $25.72 $25.73 $22.90 $20.61 $15.54 $16.76
Net investment income (loss).... (0.17) 0.03 0.06 0.05 0.12 0.18
Net realized and unrealized
gains (losses) on security
transactions and realized
capital gain distributions
received (includes the effect
of capital
share transactions)............ 3.89 (0.04) 2.77 2.24 4.95 (1.40)
------ ------ ------ ------ ------ ------
Unit value, end of period....... $29.44 $25.72 $25.73 $22.90 $20.61 $15.54
====== ====== ====== ====== ====== ======
SEPARATE ACCOUNT II (NON-QUALI-
FIED POLICIES)
Unit value, beginning of period. $25.72 $25.73 $22.90 $20.61 $15.54 $16.76
Net investment income (loss).... (0.17) 0.03 0.07 0.06 0.12 0.18
Net realized and unrealized
gains (losses) on security
transactions and realized
capital gain distributions
received (includes the effect
of capital
share transactions)............ 3.89 (0.04) 2.76 2.23 4.95 (1.40)
------ ------ ------ ------ ------ ------
Unit value, end of period....... $29.44 $25.72 $25.73 $22.90 $20.61 $15.54
====== ====== ====== ====== ====== ======
</TABLE>
+ Per unit data based on average monthly units outstanding during each period.
24
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNTS I AND II
TAX-QUALIFIED AND
NON-QUALIFIED POLICIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FLEXIBLE PREMIUM POLICIES
- --------------------------------------------------------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$24.34 $24.48 $21.90 $19.80 $15.01 $16.27
(0.22) (0.09) (0.06) (0.08) 0.02 0.11
3.67 (0.05) 2.64 2.18 4.77 (1.37)
------ ------ ------ ------ ------ ------
$27.79 $24.34 $24.48 $21.90 $19.80 $15.01
====== ====== ====== ====== ====== ======
$24.34 $24.48 $21.90 $19.80 $15.01 $16.27
(0.22) (0.09) (0.06) (0.08) 0.02 0.10
3.67 (0.05) 2.64 2.18 4.77 (1.36)
------ ------ ------ ------ ------ ------
$27.79 $24.34 $24.48 $21.90 $19.80 $15.01
====== ====== ====== ====== ====== ======
</TABLE>
25
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 7--Selected Per Unit Data+ (Continued):
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINGLE PREMIUM POLICIES
--------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED DECEMBER 31,
BOND INVESTMENT DIVISIONS JUNE 30, -----------------------------------
1995 1994 1993 1992 1991 1990
--------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-QUALI-
FIED POLICIES)
Unit value, beginning of period. $24.34 $25.51 $23.19 $21.69 $18.87 $17.81
Net investment income (loss).... (0.15) 1.22 1.39 1.40 1.42 1.39
Net realized and unrealized
gains (losses) on security
transactions and realized
capital gain distributions
received (includes the effect
of capital
share transactions)............ 2.72 (2.39) 0.93 0.10 1.40 (0.33)
------ ------ ------ ------ ------ ------
Unit value, end of period....... $26.91 $24.34 $25.51 $23.19 $21.69 $18.87
====== ====== ====== ====== ====== ======
SEPARATE ACCOUNT II (NON-QUALI-
FIED POLICIES)
Unit value, beginning of period. $24.43 $25.60 $23.28 $21.77 $18.94 $17.87
Net investment income (loss).... (0.15) 1.19 1.44 1.43 1.44 1.35
Net realized and unrealized
gains (losses) on security
transactions and realized
capital gain distributions
received (includes the effect
of capital
share transactions)............ 2.73 (2.36) 0.88 0.08 1.39 (0.28)
------ ------ ------ ------ ------ ------
Unit value, end of period....... $27.01 $24.43 $25.60 $23.28 $21.77 $18.94
====== ====== ====== ====== ====== ======
</TABLE>
+ Per unit data based on average monthly units outstanding during each period.
26
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNTS I AND II
TAX-QUALIFIED AND
NON-QUALIFIED POLICIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FLEXIBLE PREMIUM POLICIES
- ---------------------------------------------------------------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$23.03 $24.26 $22.17 $20.84 $18.22 $17.28
(0.20) 1.11 1.20 1.10 1.21 1.26
2.57 (2.34) 0.89 0.23 1.41 (0.32)
------ ------ ------ ------ ------ ------
$25.40 $23.03 $24.26 $22.17 $20.84 $18.22
====== ====== ====== ====== ====== ======
$23.07 $24.30 $22.20 $20.87 $18.25 $17.31
(0.20) 1.10 1.13 1.09 1.20 1.22
2.57 (2.33) 0.97 0.24 1.42 (0.28)
------ ------ ------ ------ ------ ------
$25.44 $23.07 $24.30 $22.20 $20.87 $18.25
====== ====== ====== ====== ====== ======
</TABLE>
27
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 7--Selected Per Unit Data+ (Continued):
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINGLE PREMIUM POLICIES
-------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED DECEMBER 31,
MONEY MARKET INVESTMENT DIVISIONS JUNE 30, ----------------------------------
1995 1994 1993 1992 1991 1990
-------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I (TAX-QUALIFIED
POLICIES)
Unit value, beginning of period... $17.81 $17.36 $17.07 $16.70 $15.96 $14.93
Net investment income............. 0.38 0.45 0.29 0.37 0.74 1.03
------ ------ ------ ------ ------ ------
Unit value, end of period......... $18.19 $17.81 $17.36 $17.07 $16.70 $15.96
====== ====== ====== ====== ====== ======
SEPARATE ACCOUNT II (NON-QUALIFIED
POLICIES)
Unit value, beginning of period... $17.81 $17.36 $17.07 $16.70 $15.96 $14.93
Net investment income............. 0.38 0.45 0.29 0.37 0.74 1.03
------ ------ ------ ------ ------ ------
Unit value, end of period......... $18.19 $17.81 $17.36 $17.07 $16.70 $15.96
====== ====== ====== ====== ====== ======
</TABLE>
+ Per unit data based on average monthly units outstanding during each period.
28
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
MFA SEPARATE ACCOUNTS I AND II
TAX-QUALIFIED AND
NON-QUALIFIED POLICIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FLEXIBLE PREMIUM POLICIES
- --------------------------------------------------------------------------------------------------
SIX
MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$16.85 $16.51 $16.32 $16.04 $15.41 $14.48
0.33 0.34 0.19 0.28 0.63 0.93
- ------ ------ ------ ------ ------ ------
$17.18 $16.85 $16.51 $16.32 $16.04 $15.41
====== ====== ====== ====== ====== ======
$16.85 $16.51 $16.32 $16.04 $15.41 $14.48
0.33 0.34 0.19 0.28 0.63 0.93
- ------ ------ ------ ------ ------ ------
$17.18 $16.85 $16.51 $16.32 $16.04 $15.41
====== ====== ====== ====== ====== ======
</TABLE>
29
<PAGE>
[LOGO OF NEW YORK LIFE]
NEW YORK LIFE MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
51 Madison Avenue, New York, N.Y. 10010
Semi-Annual Report
June 30, 1995
- -------------------------------------------------------------------------------
To Policyowners:
The assets of NYLIAC Variable Universal Life Separate Account I, NYLIAC
Variable Annuity Separate Account I, NYLIAC Variable Annuity Separate Account
II, NYLIAC LifeStages SM Separate Account, New York Life Insurance and Annuity
Corporation MFA Separate Account I, New York Life Insurance and Annuity
Corporation MFA Separate Account II and New York Life Insurance and Annuity
Corporation VLI Separate Account are invested in shares of New York Life MFA
Series Fund, Inc. In addition, the assets of NYLIAC Variable Annuity Separate
Account I, NYLIAC Variable Annuity Separate Account II and NYLIAC
LifeStages SM Separate Account may be invested in Acacia Capital Corporation,
which is not affiliated with New York Life MFA Series Fund, Inc. or NYLIAC and
any of its subsidiaries.
At the Annual Meeting of the Board of Directors of the Fund held on February
21, 1995, executive officers of the Fund were elected. At a meeting of the
Board of Directors held on May 16, 1995, the Board declared a dividend distri-
bution which was paid on May 17, 1995, to NYLIAC Variable Universal Life Sepa-
rate Account I, NYLIAC Variable Annuity Separate Account I, NYLIAC Variable
Annuity Separate Account II, New York Life Insurance and Annuity Corporation
MFA Separate Account I, New York Life Insurance and Annuity Corporation MFA
Separate Account II and New York Life Insurance and Annuity Corporation VLI
Separate Account as the sole shareholders of record of New York Life MFA Se-
ries Fund, Inc.
The financial information included herein as of June 30, 1995, and for the
period then ended, is taken from the records of the Fund without examination
by independent accountants who do not express an opinion thereon.
/s/ Richard M. Kernan Jr.
Chairman of the Board
and Chief Executive Officer
NEW YORK LIFE MFA SERIES FUND, INC.
30
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
SHORT-TERM
INVESTMENTS (100.2%)+
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------------------
<S> <C> <C>
Bankers'
Acceptance (1.4%)
Sumitomo Bank
Ltd.,
New York
6.26%, due
7/6/95........... $ 900,000 $ 899,218
-----------
Bank Note (3.2%)
Bank Of America,
Illinois
5.89%, due
9/25/95 (c)...... 2,000,000 2,000,000
-----------
Certificate of De-
posit (1.6%)
Mitsubishi Bank,
New York
6.45%, due
5/24/96 (c)...... 1,000,000 1,000,257
-----------
Medium-Term Note
(1.6%)
General Electric
Capital Corp.
6.21%, due 6/6/96
(b)(c)........... 1,000,000 1,000,000
-----------
Commercial Paper
(92.4%)
Banca CRT
Financial Corp.
5.95%, due
9/1/95........... 500,000 494,876
6.04%, due
7/10/95......... 2,000,000 1,996,980
Beta Finance Inc.
5.85%, due
9/15/95 (a)...... 2,000,000 1,975,300
BIL North America
Inc.
5.87%, due
10/2/95.......... 3,300,000 3,249,958
Bradford & Bingley
Building Society
5.81%, due
9/26/95.......... 1,800,000 1,774,726
Brown-Forman Corp.
6.15%, due
8/15/95.......... 1,300,000 1,290,006
Commerzbank U.S.
Finance Inc.
5.86%, due
9/1/95........... 2,800,000 2,771,742
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------------------
<S> <C> <C>
Commercial Paper
(Continued)
Compagnie Bancaire
5.82%, due
9/7/95........... $2,500,000 $ 2,472,517
5.89%, due
8/31/95......... 500,000 495,010
Daewoo
International
(America) Corp.
6.00%, due
8/28/95.......... 2,000,000 1,980,667
6.15%, due
7/10/95......... 1,000,000 998,462
Delaware Group
Dividend & Income
Fund, Inc.
6.13%, due
8/15/95.......... 1,500,000 1,488,516
Dynamic Funding
Corp.
Series A
5.98%, due
7/25/95.......... 1,100,000 1,095,615
Galicia Funding
Corp.
6.15%, due
7/21/95 (a)...... 2,500,000 2,491,458
Hanson Finance
(U.K.) Plc
5.85%, due
9/5/95........... 1,500,000 1,483,912
Idaho Power Co.
5.97%, due
7/19/95.......... 1,500,000 1,495,523
KFW International
Finance Inc.
6.00%, due
7/13/95.......... 200,000 199,600
Kingdom of Sweden
6.15%, due
7/6/95........... 2,000,000 1,998,292
KN Energy Inc.
6.06%, due
7/26/95.......... 1,200,000 1,194,950
Kredietbank N.A.
Finance Corp.
5.97%, due
7/10/95.......... 900,000 898,657
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
31
<PAGE>
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
SHORT-TERM
INVESTMENTS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------------------
<S> <C> <C>
Commercial Paper
(Continued)
McKenna Triangle
National Corp.
6.15%, due
8/21/95 (a)...... $1,200,000 $ 1,189,545
Michelin Tire
Corp.
5.98%, due
8/1/95........... 3,000,000 2,984,552
Monte Rosa Capital
Corp.
5.96%, due
7/21/95 (a)...... 1,500,000 1,495,033
New Center Asset
Trust Series
5.52%, due
11/15/95......... 400,000 391,597
Petroleo
Brasileiro
S.A.-Petrobras
6.04%, due
7/24/95.......... 3,000,000 2,988,423
Prudential Finance
(Jersey) Ltd.
5.96%, due
8/8/95........... 2,000,000 1,987,418
6.00%, due
7/31/95......... 1,000,000 995,000
Redwood
Receivables Corp.
6.00%, due
7/12/95 (a)...... 500,000 499,083
6.05%, due
7/26/95 (a)..... 1,500,000 1,493,698
Southwest Gas
Corp.
5.95%, due
8/3/95........... 1,000,000 994,546
Svenska
Handelsbanken
Inc.
5.93%, due
8/7/95........... 2,500,000 2,484,763
Toshiba
International
Finance (U.K.)
Plc
6.00%, due
7/3/95........... 1,200,000 1,199,600
6.22%, due
9/11/95......... 1,500,000 1,481,340
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
-----------------------
<S> <C> <C>
Commercial Paper
(Continued)
Toyota Motor
Credit Corp.
6.20%, due
10/6/95.......... $1,600,000 $ 1,573,271
U.S. Borax &
Chemical Corp.
6.15%, due
8/30/95 (a)...... 1,900,000 1,880,525
Vattenfall
Treasury Inc.
6.05%, due
7/14/95.......... 3,000,000 2,993,446
-----------
58,478,607
-----------
Total Short-Term
Investments
(Amortized Cost
$63,378,082) (d). 100.2% 63,378,082
Liabilities in
Excess of Cash
and Other Assets. (0.2) (131,211)
---------- -----------
Net Assets........ 100.0% $63,246,871
========== ===========
</TABLE>
- --------
(a) May be sold to institutional investors only.
(b) Floating rate. Rate shown is the rate in effect at June 30, 1995.
(c) Coupon interest bearing security.
(d) The cost stated also represents the aggregate cost for Federal income tax
purposes.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
32
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The table below sets forth the diversification of Cash Management Portfolio in-
vestments by industry.
SHORT-TERM
INVESTMENTS
<TABLE>
<CAPTION>
AMORTIZED
COST PERCENT +
----------------------
<S> <C> <C>
Auto Manufacturing. $ 1,573,271 2.5%
Banks #............ 38,054,663 60.2
Beverages.......... 1,290,006 2.0
Chemicals.......... 1,880,525 3.0
Consumer Financial
Services.......... 391,597 0.6
Energy............. 4,188,396 6.6
Finance............ 10,518,391 16.6
Foreign Government. 1,998,292 3.2
Insurance.......... 1,987,418 3.1
Utilities.......... 1,495,523 2.4
----------- -----
63,378,082 100.2
Liabilities in
Excess of Cash and
Other Assets...... (131,211) (0.2)
----------- -----
Net Assets......... $63,246,871 100.0%
=========== =====
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
# The Fund will invest more than 25% of the market value of its total assets
in the securities of banks and bank holding companies, including
certificates of deposit and bankers' acceptances.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
33
<PAGE>
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (amortized cost
$63,378,082).................................................... $63,378,082
Cash............................................................. 1,354
Receivables:
Investment securities sold....................................... 4,734,000
NYLIAC........................................................... 32,416
Fund shares sold................................................. 20,025
Interest......................................................... 12,430
Other assets..................................................... 360
-----------
Total assets................................................... 68,178,667
-----------
LIABILITIES:
Payables:
Investment securities purchased.................................. 3,249,420
Fund shares redeemed............................................. 1,324,865
Adviser.......................................................... 12,804
Recordkeeping.................................................... 5,348
Administrator.................................................... 5,121
Custodian........................................................ 1,426
Directors........................................................ 622
Accrued expenses................................................. 47,240
Dividend payable................................................. 284,950
-----------
Total liabilities.............................................. 4,931,796
-----------
Net assets applicable to
outstanding shares.............................................. $63,246,871
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 200 million shares
authorized...................................................... $ 632,472
Additional paid-in capital....................................... 62,614,724
Accumulated net realized loss
on investments.................................................. (325)
-----------
Net assets applicable to
outstanding shares.............................................. $63,246,871
===========
Shares of capital stock outstanding.............................. 63,247,154
===========
Net asset value per share outstanding............................ $ 1.00
===========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest........................................................... $1,969,697
----------
Expenses: (Note 2)
Recordkeeping (Note 3)............................................. 148,944
Advisory (Note 3).................................................. 79,187
Administration (Note 3)............................................ 63,349
Shareholder communication.......................................... 20,363
Auditing........................................................... 10,241
Amortization of organization expense............................... 5,446
Custodian.......................................................... 4,177
Legal.............................................................. 3,259
Directors.......................................................... 2,833
Miscellaneous...................................................... 3,558
----------
Total expenses
before reimbursement............................................ 341,357
Expense reimbursement from Administrator (Note 3).................. (144,974)
----------
Net expenses..................................................... 196,383
----------
Net investment income.............................................. 1,773,314
----------
REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments................................... 59
----------
Net increase in net assets resulting
from operations................................................... $1,773,373
==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
34
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............................. $ 1,773,314 $ 2,310,893
Net realized gain (loss) on investments........... 59 (342)
------------ ------------
Net increase in net assets resulting from opera-
tions............................................ 1,773,373 2,310,551
------------ ------------
Dividends to shareholders:
From net investment income........................ (1,773,314) (2,310,893)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 50,635,801 99,252,119
Net asset value of shares issued to shareholders
in reinvestment of dividends..................... 1,790,336 2,011,001
Net asset value of shares issued in connection
with acquisition of Money Market Portfolio....... -- 37,601,126
------------ ------------
52,426,137 138,864,246
Cost of shares redeemed........................... (60,295,506) (94,480,925)
------------ ------------
Increase (decrease) in net assets derived from
capital share transactions...................... (7,869,369) 44,383,321
------------ ------------
Net increase (decrease) in net assets............ (7,869,310) 44,382,979
NET ASSETS:
Beginning of period............................... 71,116,181 26,733,202
------------ ------------
End of period..................................... $ 63,246,871 $ 71,116,181
============ ============
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
JANUARY 29,
SIX MONTHS 1993 (A)
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1995* 1994 1993
---------- ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period.. $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Net investment income................... 0.03 0.04 0.02
------- ------- -------
Less dividends:
From net investment income............. (0.03) (0.04) (0.02)
------- ------- -------
Net asset value at end of period........ $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total investment return (b)............. 2.82% 3.82% 2.40%
Ratios (to average net
assets)/Supplemental Data:
Net investment income.................. 5.60%+ 3.97% 2.65%+
Net expenses........................... 0.62%+ 0.62% 0.62%+
Expenses (before reimbursement)........ 1.08%+ 0.89% 1.10%+
Net assets at end of period (in 000's).. $63,247 $71,116 $26,733
</TABLE>
- --------
(a) Commencement of Operations.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
35
<PAGE>
- --------------------------------------------------------------------------------
BOND PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (97.6%)+
CORPORATE BONDS (52.2%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Banks (8.3%)
BankAmerica Corp. 7.75%, due 7/15/02.................. $ 4,000,000 $ 4,205,000
First Union Corp.
9.45%, due 6/15/99................................... 5,000,000 5,493,750
Golden West
Financial Corp.
10.25%, due 12/1/00.................................. 1,000,000 1,158,750
National City Corp. 8.375%, due 3/15/96............... 2,500,000 2,543,750
Republic New
York Corp.
7.75%, due 5/15/09................................... 5,000,000 5,300,000
------------
18,701,250
------------
Containers (1.7%)
Federal Paper Board Inc. 10.00%, due 4/15/11.......... 3,100,000 3,751,000
------------
Data Processing (1.3%)
International Business Machines Corp. 6.375%, due
6/15/00.............................................. 3,000,000 2,985,000
------------
Diversified
Utilities (7.0%)
Consumers Power Co. 7.375%, due 9/15/23............... 2,000,000 1,885,000
Long Island Lighting Co. 8.75%, due 2/15/97........... 2,000,000 2,060,000
Niagara Mohawk
Power Corp.
7.375%, due 8/1/03................................... 2,000,000 2,005,000
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Diversified Utilities
(Continued)
Pacific Gas &
Electric Co.
6.25%, due 3/1/04.................................... $ 3,000,000 $ 2,902,500
Philadelphia Electric Co. 5.625%, due 11/1/01......... 3,000,000 2,831,250
Public Service Co.
of Colorado
6.00%, due 1/1/01.................................... 3,000,000 2,917,500
Utilicorp United, Inc. 9.30%, due 12/1/95 (a) 1,100,000 1,116,500
------------
15,717,750
------------
Electric Utilities (2.6%)
Commonwealth
Edison Co.
9.75%, due 2/15/20................................... 1,450,000 1,642,125
Ohio Edison Co.
8.50%, due 5/1/96.................................... 1,100,000 1,117,875
Southern California Edison Corp.
5.875%, due 2/1/98................................... 2,000,000 1,980,000
Texas Utilities
Electric Co.
10.35%, due 1/1/18................................... 1,100,000 1,182,500
------------
5,922,500
------------
Finance (11.4%)
American General Finance Corp.
7.00%, due 10/1/97................................... 7,000,000 7,113,750
Chrysler Financial Corp. 8.125%, due 12/15/96......... 6,000,000 6,148,260
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
36
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
CORPORATE BONDS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Finance (Continued)
Ford Motor
Credit Co.
6.25%, due
2/26/98........ $ 3,000,000 $ 3,000,000
General Motors
Acceptance
Corp.
7.75%, due
4/15/97....... 5,000,000 5,137,500
9.625%, due
12/15/01...... 1,000,000 1,143,750
Mellon Financial
Co.
7.625%, due
11/15/99....... 3,000,000 3,131,250
------------
25,674,510
------------
Food (0.5%)
ConAgra, Inc.
9.875%, due
11/15/05 1,000,000 1,213,750
------------
Foreign (6.9%)
British
Telecommunications Plc
9.375%, due
2/15/99....... 4,200,000 4,604,250
9.625%, due
2/15/19....... 1,000,000 1,125,000
Canadian
Pacific, Ltd.
8.85%, due
6/1/22......... 2,000,000 2,192,500
National
Westminster
Bancorp, Inc.
9.375%, due
11/15/03....... 2,000,000 2,320,000
Province of Nova
Scotia
8.25%, due
7/30/22........ 5,000,000 5,312,500
------------
15,554,250
------------
Motion Pictures/T.V.
Programming
(1.0%)
Harcourt
General, Inc.
9.50%, due
3/15/00....... 2,000,000 2,220,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Oil & Gas (1.1%)
Phillips
Petroleum Co.
9.18%, due
9/15/21........ $ 1,200,000 $ 1,332,000
Tennessee Gas
Pipeline Co.
9.25%, due
5/15/96........ 1,060,000 1,090,475
------------
2,422,475
------------
Paper/Products (2.3%)
Champion
International
Corp.
9.875%, due
6/1/00......... 4,500,000 5,101,875
------------
Railroads (1.1%)
CSX Corp.
9.00%, due
8/15/06........ 2,200,000 2,541,000
------------
Retail Stores (5.5%)
Price/Costco,
Inc.
7.125%, due
6/15/05........ 5,000,000 5,012,500
Sears Roebuck &
Co.
8.45%, due
11/1/98........ 7,000,000 7,411,250
------------
12,423,750
------------
Telecommunications (1.5%)
AT&T Corp.
8.625%, due
12/1/31........ 2,000,000 2,162,500
GTE Florida,
Inc.
9.625%, due
4/1/30......... 1,000,000 1,058,750
------------
3,221,250
------------
Total Corporate
Bonds
(Cost
$112,190,091).. 117,450,360
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
37
<PAGE>
- -------------------------------------------------------------------------------
BOND PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1994 (Unaudited)
- -------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
U.S. GOVERNMENT &
FEDERAL AGENCIES (45.4%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Federal National Mortgage
Association (4.3%)
4.95%, due
9/30/98........ $10,000,000 $ 9,637,000
10.60%,
due 11/10/95
(a)............. 45,000 45,765
------------
9,682,765
------------
United States Treasury
Bonds (14.7%)
7.50%, due
11/15/24....... 10,000,000 11,069,600
7.625%,
due 2/15/07-
2/15/25......... 20,000,000 21,951,700
------------
33,021,300
------------
United States Treasury
Notes (26.4%)
6.50%, due
5/15/05........ 5,000,000 5,105,800
7.125%, due
2/29/00........ 10,000,000 10,443,600
7.25%, due
8/15/04........ 10,000,000 10,686,900
7.50%,
due 11/15/01-
2/15/05......... 19,300,000 20,836,340
8.50%, due
11/15/00....... 11,200,000 12,454,736
------------
59,527,376
------------
Total U.S.
Government &
Federal Agencies
(Cost
$96,178,348).... 102,231,441
------------
Total Long-Term
Bonds (Cost
$208,368,439)... 219,681,801
------------
</TABLE>
SHORT-TERM
INVESTMENT (1.1%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-------------------------
<S> <C> <C>
Commercial Paper (1.1%)
Associates Corp.
of North
America 5.920%,
due on demand
(b).................... $ 2,500,000 $ 2,500,000
------------
Total Short-Term
Investment
(Cost
$2,500,000)............ 2,500,000
------------
Total
Investments
(Cost
$210,868,439)
(c) 98.7% 222,181,801(d)
Cash and Other
Assets, Less
Liabilities............ 1.3 2,879,982
----------- ------------
Net Assets.............. 100.0% $225,061,783
=========== ============
</TABLE>
- --------
(a) Long-Term securities maturing within the subsequent twelve month period.
(b) Adjustable rate. Rate shown is the rate in effect at June 30, 1995.
(c) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(d) At June 30, 1995 net unrealized appreciation was $11,313,362, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $11,598,263 and aggregate gross unrealized
depreciation of all investments on which there was an excess of cost over
market value of $284,901.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
38
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$210,868,439).................................................. $222,181,801
Cash............................................................ 6,891
Receivables:
Interest........................................................ 3,707,372
Investment securities sold...................................... 209,000
Fund shares sold................................................ 68,709
Other assets.................................................... 1,273
------------
Total assets.................................................. 226,175,046
------------
LIABILITIES:
Payables:
NYLIAC.......................................................... 533,015
Fund shares redeemed............................................ 280,253
Adviser......................................................... 136,901
Administrator................................................... 18,501
Recordkeeping................................................... 4,406
Directors....................................................... 1,392
Accrued expenses................................................ 138,795
------------
Total liabilities............................................. 1,113,263
------------
Net assets applicable to
outstanding shares............................................. $225,061,783
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized..................................................... $ 167,393
Additional paid-in capital...................................... 212,906,858
Accumulated undistributed net investment income................. 7,157,922
Accumulated net realized loss
on investments................................................. (6,483,752)
Net unrealized appreciation
on investments................................................. 11,313,362
------------
Net assets applicable to
outstanding shares............................................. $225,061,783
============
Shares of capital stock outstanding............................. 16,739,320
============
Net asset value per share outstanding........................... $ 13.45
============
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest.......................................................... $ 7,867,419
-----------
Expenses: (Note 2)
Recordkeeping (Note 3)............................................ 491,652
Advisory (Note 3)................................................. 266,005
Administration (Note 3)........................................... 212,804
Shareholder communication......................................... 69,638
Auditing.......................................................... 18,835
Legal............................................................. 11,089
Directors......................................................... 8,543
Portfolio pricing................................................. 4,303
Miscellaneous..................................................... 3,411
-----------
Total expenses
before reimbursement........................................... 1,086,280
Expense reimbursement from
Administrator (Note 3)........................................... (426,588)
-----------
Net expenses.................................................... 659,692
-----------
Net investment income............................................. 7,207,727
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments.................................. 981,388
Net change in unrealized depreciation
on investments................................................... 14,691,148
-----------
Net realized and unrealized gain
on investments .................................................. 15,672,536
-----------
Net increase in net assets resulting
from operations.................................................. $22,880,263
===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
39
<PAGE>
- -------------------------------------------------------------------------------
BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............................. $ 7,207,727 $ 14,086,182
Net realized gain (loss) on investments........... 981,388 (4,481,302)
Net change in unrealized appreciation (deprecia-
tion) on investments............................. 14,691,148 (17,363,837)
------------ ------------
Net increase (decrease) in net assets resulting
from operations.................................. 22,880,263 (7,758,957)
------------ ------------
Dividends to shareholders:
From net investment income........................ (50,000) (14,085,987)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 11,548,643 21,844,680
Net asset value of shares issued to shareholders
in reinvestment of dividends..................... 50,000 14,085,987
------------ ------------
11,598,643 35,930,667
Cost of shares redeemed........................... (16,053,132) (36,082,699)
------------ ------------
Decrease in net assets derived from capital share
transactions.................................... (4,454,489) (152,032)
------------ ------------
Net increase (decrease) in net assets............ 18,375,774 (21,996,976)
NET ASSETS:
Beginning of period............................... 206,686,009 228,682,985
------------ ------------
End of period..................................... $225,061,783 $206,686,009
============ ============
Accumulated undistributed net investment income... $ 7,157,922 $ 195
============ ============
</TABLE>
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31
ENDED
JUNE 30, --------------------------------------------------
1995* 1994 1993 1992 1991 1990
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at be-
ginning of period...... $ 12.09 $ 13.43 $ 12.91 $ 12.77 $ 11.86 $ 12.09
-------- -------- -------- -------- -------- --------
Net investment income... 0.43 0.88 0.95 0.92 1.02 1.12
Net realized and
unrealized gain (loss)
on investments......... 0.93 (1.34) 0.53 0.13 0.91 (0.23)
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 1.36 (0.46) 1.48 1.05 1.93 0.89
-------- -------- -------- -------- -------- --------
Less dividends:
From net investment in-
come.................. (0.00)(a) (0.88) (0.96) (0.91) (1.02) (1.12)
-------- -------- -------- -------- -------- --------
Net asset value at end
of period.............. $ 13.45 $ 12.09 $ 13.43 $ 12.91 $ 12.77 $ 11.86
======== ======== ======== ======== ======== ========
Total investment return
(b).................... 11.25% (3.39%) 11.40% 8.26% 16.27% 7.36%
Ratios (to average net
assets)/Supplemental
Data:
Net investment income.. 6.77%+ 6.53% 6.79% 7.54% 8.22% 8.88%
Net expenses........... 0.62%+ 0.62%# 0.27%# 0.25% 0.25% 0.25%
Expenses (before reim-
bursement)............ 1.02%+ 0.67%# 0.27%# 0.25% 0.25% 0.25%
Portfolio turnover rate. 47% 88% 41% 10% 57% 81%
Net assets at end of pe-
riod (in 000's)........ $225,062 $206,686 $228,683 $203,947 $164,124 $138,826
</TABLE>
- --------
(a) Less than one cent per share.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
# At the MFA Series Fund, Inc.'s shareholders meeting on December 14, 1993,
the shareholders voted to have the Portfolio assume certain administrative
and operating expenses of the Fund previously borne by New York Life.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
40
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (96.7%)+
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Aerospace/Defense (3.0%)
Litton Industries
Inc............. 85,700 $ 3,160,188
Lockheed Martin
Corp............ 61,200 3,863,250
Loral Corp. ..... 82,000 4,243,500
------------
11,266,938
------------
Auto & Auto Services (4.0%)
Allen Group Inc.
(The)........... 168,500 4,991,813
General Motors
Corp............ 72,000 3,375,000
Goodyear Tire &
Rubber Co....... 102,200 4,215,750
Superior
Industries
International,
Inc............. 80,700 2,511,787
------------
15,094,350
------------
Banks (5.5%)
Chase Manhattan
Corp. (The)..... 75,000 3,525,000
First Security
Corp. .......... 159,600 4,468,800
Mellon Bank
Corp. .......... 73,000 3,038,625
Midlantic Corp. . 79,500 3,180,000
Morgan, J.P. &
Co., Inc. ...... 47,600 3,337,950
Signet Banking
Corp............ 146,900 3,213,438
------------
20,763,813
------------
Building Products (0.8%)
USG Corp. (a).... 131,200 3,116,000
------------
Chemicals (5.4%)
Albemarle Corp... 234,000 3,656,250
Engelhard Corp... 18,600 797,475
Grace (W.R.) &
Co.............. 57,000 3,498,375
IMC Global Inc... 109,600 5,932,100
Sealed Air Corp.
(a)............. 150,000 6,600,000
------------
20,484,200
------------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Commercial
Services (1.1%)
Service Corp.
International... 138,000 $ 4,364,250
------------
Communications (2.4%)
ADC
Telecommunications
Inc. ........... 133,300 4,765,475
AT&T Corp. ...... 70,000 3,718,750
Mobilemedia
Corp. .......... 30,000 615,000
------------
9,099,225
------------
Computer & Business
Equipment (6.3%)
FIserv Inc....... 100,000 2,812,500
Intel Corp....... 80,600 5,102,988
Microcom Inc..... 10,000 150,000
Microsoft Corp. . 55,000 4,970,625
Novell, Inc. (a). 182,000 3,628,625
Varian Assoc.,
Inc. ........... 135,300 7,475,325
------------
24,140,063
------------
Conglomerates (2.3%)
Eastman Kodak
Co.............. 57,000 3,455,625
ITT Corp. ....... 45,800 5,381,500
------------
8,837,125
------------
Drugs (6.4%)
American Home
Products Corp.
................ 49,500 3,830,063
Elan Corp. Plc
ADR (a)(c) 81,000 3,300,750
Pfizer Inc. ..... 29,400 2,715,825
Scherer (R.P.)
Corp. (a)....... 86,000 3,633,500
Schering-Plough.. 96,000 4,236,000
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Drugs (Continued)
Merck & Co.,
Inc. ........... 69,200 $ 3,390,800
Warner-Lambert
Co. ............ 38,700 3,342,712
------------
24,449,650
------------
Electrical (6.6%)
Avnet, Inc. ..... 92,800 4,489,200
Emerson Electric
Co. ............ 70,000 5,005,000
General Electric
Co. ............ 119,000 6,708,625
Honeywell Inc. .. 105,000 4,528,125
Mark IV
Industries,
Inc. ........... 213,103 4,581,714
------------
25,312,664
------------
Electronics (3.6%)
Hewlett-Packard
Co. ............ 48,700 3,628,150
Motorola, Inc. .. 85,600 5,745,900
Sensormatic
Electronics
Corp. .......... 126,000 4,473,000
------------
13,847,050
------------
Finance (3.0%)
Chelsea GCA
Realty, Inc. ... 96,300 2,600,100
Federal National
Mortgage
Association..... 40,000 3,775,000
First Financial
Management
Corp. .......... 57,400 4,907,700
------------
11,282,800
------------
Foods (1.8%)
ConAgra, Inc. ... 114,100 3,979,238
General Mills,
Inc. ........... 57,000 2,928,375
------------
6,907,613
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Hospital & Medical
Services (4.3%)
Allergan, Inc. .. 92,400 $ 2,506,350
Columbia/HCA
Healthcare
Corp. .......... 102,800 4,446,100
Coram Healthcare
Corp. .......... 186,500 2,634,312
HEALTHSOUTH
Corp. .......... 181,400 3,151,825
Sybron
International
Corp. (a)....... 93,100 3,712,362
------------
16,450,949
------------
Household Products (1.9%)
Dial Corp. (The). 184,600 4,568,850
Sunbeam-Oster
Inc. ........... 187,700 2,604,338
------------
7,173,188
------------
Insurance--Property &
Casualty (0.9%)
American
International
Group, Inc. .... 30,000 3,420,000
------------
Learning &
Educational (0.8%)
Kinder Care
Learning
Centers, Inc.
(a)............. 227,000 3,064,500
------------
Leisure/Amusement (1.0%)
Mattel Inc. ..... 147,900 3,845,400
------------
Lodging & Restaurants (2.2%)
Marriott
International,
Inc. 125,000 4,484,375
McDonald's
Corp. .......... 100,800 3,943,800
------------
8,428,175
------------
Machinery/Capital
Goods (2.1%)
Donaldson Co.,
Inc. ........... 188,100 4,914,113
Tenneco, Inc. ... 70,600 3,247,600
------------
8,161,713
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
42
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Manufacturing (2.0%)
AlliedSignal
Inc. ........... 96,000 $ 4,272,000
Furon Co. ....... 158,400 3,484,800
------------
7,756,800
------------
Media & Information
Services (3.8%)
News Corp. Ltd.
ADR (c)......... 127,800 2,891,475
Tele-
Communications
Inc. ........... 175,000 4,101,563
Time Warner,
Inc. ........... 81,000 3,331,125
Viacom Inc. Class
B (a)........... 92,300 4,280,412
------------
14,604,575
------------
Metals (1.7%)
Allegheny Ludlum
Corp. .......... 147,300 2,909,175
Aluminum Co.
of America...... 68,000 3,408,500
------------
6,317,675
------------
Oil & Energy
Services (10.5%)
Aquila Gas
Pipeline Corp. . 107,800 956,725
Mobil Corp. ..... 55,000 5,280,000
NGC Corp. ....... 128,598 1,350,279
Quaker State
Corp. .......... 295,900 4,438,500
Questar Corp. ... 100,000 2,875,000
Royal Dutch
Petroleum Co. .. 29,100 3,546,563
Schlumberger
Ltd. ........... 60,750 3,774,094
Smith
International,
Inc. (a)........ 180,500 3,023,375
Triton Energy
Corp. (a)....... 100,000 4,637,500
Unocal Corp. .... 131,500 3,632,687
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Oil & Energy
Services (Continued)
USX-Delhi Group.. 125,700 $ 1,445,550
Western Atlas
Inc. ........... 91,500 4,060,312
XCL Ltd. (a)..... 1,316,800 1,152,200
------------
40,172,785
------------
Paper & Forest
Products (2.4%)
Mead Corp. ...... 74,500 4,423,437
Willamette
Industries, Inc. 82,500 4,578,750
------------
9,002,187
------------
Pollution Control (1.3%)
Browning-Ferris
Industries
Inc. ........... 138,500 5,003,312
------------
Real Estate
(0.9%)
Liberty Property
Trust........... 166,500 3,267,562
------------
Retail Trade &
Merchandising (3.2%)
Global DirectMail
Corp. .......... 100,000 1,975,000
Kmart Corp. ..... 253,000 3,700,125
Smart & Final,
Inc. ........... 163,000 2,791,375
Vons Companies
Inc. (a)........ 178,200 3,586,275
------------
12,052,775
------------
Transportation (2.5%)
Rollins Truck
Leasing Corp. .. 380,500 4,090,375
Southern Pacific
Rail Corp. ..... 234,600 3,694,950
UNC Inc. (a)..... 300,000 1,612,500
------------
9,397,825
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
43
<PAGE>
- -------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Utilities--Electric (0.9%)
CMS Energy
Corp. .......... 135,000 $ 3,324,375
------------
Utilities--Telephone (2.1%)
Ameritech Corp... 80,000 3,520,000
Paging Network,
Inc. ........... 30,000 1,027,500
WorldCom Inc..... 127,300 3,437,100
------------
7,984,600
------------
Total Common
Stocks (Cost
$321,430,398)... 368,394,137
------------
SHORT-TERM
INVESTMENTS (3.5%)
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
Commercial Paper (3.5%)
Associates Corp.
of North America
5.92%,
due on demand
(b)............. $8,260,000 8,260,000
Ford Motor Credit
Co. 5.938%, due
7/5/95.......... 4,893,000 4,893,000
------------
Total Short-Term
Investments
(Cost
$13,153,000).... 13,153,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
Total
Investments
(Cost
$334,583,398) (d) 100.2% $381,547,137 (e)
Liabilities In
Excess of
Cash and Other
Assets (0.2) (586,678)
---------- ------------
Net Assets...... 100.0% $380,960,459
========== ============
</TABLE>
- --------
(a) Non-income producing securities.
(b) Adjustable Rate. Rate shown is the rate in effect at June 30, 1995.
(c) ADR--American Depository Receipt.
(d) The cost for Federal income tax purposes is $334,617,999.
(e) At June 30, 1995 net unrealized appreciation was $46,929,138, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $56,843,418 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $9,914,280.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
44
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2)
(identified cost $334,583,398).................................. $381,547,137
Cash............................................................. 1,318
Receivables:
Investment securities sold....................................... 3,096,319
Dividends and interest........................................... 553,480
Fund shares sold................................................. 110,086
Other assets..................................................... 2,124
------------
Total assets................................................... 385,310,464
------------
LIABILITIES:
Payables:
Investment securities purchased.................................. 2,819,966
NYLIAC........................................................... 907,949
Adviser.......................................................... 227,767
Fund shares redeemed............................................. 197,760
Administrator.................................................... 30,889
Recordkeeping.................................................... 5,459
Directors........................................................ 2,182
Accrued expenses................................................. 158,033
------------
Total liabilities.............................................. 4,350,005
------------
Net assets applicable to
outstanding shares.............................................. $380,960,459
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized...................................................... $ 225,254
Additional paid-in capital....................................... 313,835,392
Accumulated undistributed net investment income.................. 2,873,446
Accumulated undistributed net
realized gain on investments.................................... 17,062,628
Net unrealized appreciation
on investments.................................................. 46,963,739
------------
Net assets applicable to
outstanding shares.............................................. $380,960,459
============
Shares of capital stock outstanding.............................. 22,525,413
============
Net asset value per share outstanding............................ $ 16.91
============
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)..................................................... $ 3,235,605
Interest.......................................................... 771,558
-----------
Total income.................................................... 4,007,163
-----------
Expenses: (Note 2)
Recordkeeping (Note 3)............................................ 869,187
Advisory (Note 3)................................................. 438,091
Administration (Note 3)........................................... 350,473
Shareholder communication......................................... 90,125
Auditing.......................................................... 29,320
Legal............................................................. 16,618
Directors......................................................... 14,689
Miscellaneous..................................................... 6,203
-----------
Total expenses
before reimbursement........................................... 1,814,706
Expense reimbursement from Administrator (Note 3)................. (728,240)
-----------
Net expenses.................................................... 1,086,466
-----------
Net investment income............................................. 2,920,697
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments.................................. 17,058,833
Net change in unrealized appreciation
on investments................................................... 30,043,205
-----------
Net realized and unrealized gain
on investments................................................... 47,102,038
-----------
Net increase in net assets resulting
from operations.................................................. $50,022,735
===========
</TABLE>
- --------
(a) Dividends recorded net of foreign withholding taxes in the amount of
$20,774.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
45
<PAGE>
- -------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income............................. $ 2,920,697 $ 4,561,447
Net realized gain on investments.................. 17,058,833 19,138,882
Net change in unrealized apppreciation on invest-
ments............................................ 30,043,205 (19,784,672)
------------ ------------
Net increase in net assets resulting from opera-
tions............................................ 50,022,735 3,915,657
------------ ------------
Dividends and distributions to shareholders:
From net investment income........................ (50,000) (4,567,801)
From net realized gain on investments............. -- (19,120,138)
------------ ------------
Total dividends and distributions to sharehold-
ers............................................. (50,000) (23,687,939)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 17,173,170 32,631,494
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions... 50,000 23,687,939
------------ ------------
17,223,170 56,319,433
Cost of shares redeemed........................... (16,396,381) (25,581,882)
------------ ------------
Increase in net assets derived from capital share
transactions.................................... 826,789 30,737,551
------------ ------------
Net increase in net assets....................... 50,799,524 10,965,269
NET ASSETS:
Beginning of period............................... 330,160,935 319,195,666
------------ ------------
End of period..................................... $380,960,459 $330,160,935
============ ============
Accumulated undistributed net investment income... $ 2,873,446 $ 2,749
============ ============
</TABLE>
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
JUNE 30, --------------------------------------------------
1995* 1994 1993 1992 1991 1990
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at be-
ginning of period...... $ 14.69 $ 15.64 $ 15.53 $ 15.57 $ 13.00 $ 14.22
-------- -------- -------- -------- -------- --------
Net investment income... 0.13 0.22 0.24 0.22 0.27 0.32
Net realized and
unrealized gain (loss)
on investments......... 2.09 (0.03) 1.88 1.72 4.10 (1.20)
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 2.22 0.19 2.12 1.94 4.37 (0.88)
-------- -------- -------- -------- -------- --------
Less dividends and dis-
tributions:
From net investment in-
come.................. (0.00)(a) (0.22) (0.25) (0.22) (0.29) (0.33)
From net realized gain
on investments........ -- (0.92) (1.76) (1.76) (1.51) (0.01)
-------- -------- -------- -------- -------- --------
Total dividends and dis-
tributions............. (0.00)(a) (1.14) (2.01) (1.98) (1.80) (0.34)
-------- -------- -------- -------- -------- --------
Net asset value at end
of period.............. $ 16.91 $ 14.69 $ 15.64 $ 15.53 $ 15.57 $ 13.00
======== ======== ======== ======== ======== ========
Total investment return
(b).................... 15.16% 1.20% 13.71% 12.42% 33.62% (6.19%)
Ratios (to average net
assets)/Supplemental
Data:
Net investment income.. 1.67%+ 1.41% 1.42% 1.50% 1.78% 2.33%
Net expenses........... 0.62%+ 0.62%# 0.27%# 0.27% 0.29% 0.29%
Expenses (before reim-
bursement)............ 1.04%+ 0.65%# 0.27%# 0.27% 0.29% 0.29%
Portfolio turnover rate. 58% 108% 121% 82% 100% 114%
Net assets at end of pe-
riod (in 000's)........ $380,960 $330,161 $319,196 $272,834 $204,147 $152,824
</TABLE>
- --------
(a) Less than one cent per share.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
# At the MFA Series Fund, Inc.'s shareholders meeting on December 14, 1993,
the shareholders voted to have the Portfolio assume certain administrative
and operating expenses of the Fund previously borne by New York Life.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
46
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
NOTE 1--Organization and Business:
- -------------------------------------------------------------------------------
New York Life MFA Series Fund, Inc. (the "Company") was incorporated under
Maryland law on June 3, 1983. The Company is registered under the Investment
Company Act of 1940, as amended, ("Investment Company Act") as an open-end
diversified management investment company. Cash Management Portfolio, which
commenced operations on January 29, 1993, and Bond and Growth Equity
Portfolios, which commenced operations on January 23, 1984, (the "Funds") are
separate series of the Company. Shares of the Funds are currently offered only
to New York Life Insurance and Annuity Corporation ("NYLIAC"), a wholly owned
subsidiary of New York Life Insurance Company ("New York Life"). NYLIAC
allocates shares of the Funds to, among others, New York Life Insurance and
Annuity Corporation's MFA Separate Account I, MFA Separate Account II and VLI
Separate Account ("Separate Accounts", collectively). The MFA Separate
Accounts are used to fund multi-funded retirement annuity policies and the VLI
Separate Account is used to fund variable life insurance policies issued by
NYLIAC.
Effective May 2, 1994, the name of the New York Life MFA Series Fund, Inc.
Common Stock Portfolio changed to New York Life MFA Series Fund, Inc. Growth
Equity Portfolio.
- -------------------------------------------------------------------------------
NOTE 2--Significant Accounting Policies:
- -------------------------------------------------------------------------------
The following is a summary of significant accounting policies followed by the
Company:
(A)
VALUATION OF FUND SHARES. The net asset value per share of each Fund is
calculated on every day the New York Stock Exchange is open for trading,
except the day after Thanksgiving and Christmas Eve. Net asset value per share
is calculated as of the regular close of the New York Stock Exchange (normally
4:00 P.M., Eastern time) for each Fund by dividing the current market value
(amortized cost, in the case of Cash Management Portfolio) of the Fund's total
assets, less liabilities, by the total number of outstanding shares of that
Fund.
(B)
SECURITIES VALUATION. Portfolio securities of Cash Management Portfolio are
valued at amortized cost, which approximates market value. This method
involves initially valuing an instrument at its cost and thereafter amortizing
the premium or accreting the discount to income over the life of the security.
Securities of each of the other Funds are stated at value determined (a) by
appraising common and preferred stocks which are traded on the New York Stock
Exchange at the last sale price on that day or, if no sale occurs, at the mean
between the closing bid and asked prices, (b) by appraising common and
preferred stocks traded on other United States national securities exchanges
or foreign securities exchanges as nearly as possible in the manner described
in (a) by reference to its principal exchange, including the National
Association of Securities Dealers National Market System, (c) by appraising
over-the-counter securities quoted on the National Association
47
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
of Securities Dealers NASDAQ system (but not listed on the National Market
System) at the bid price supplied through such system, (d) by appraising over-
the-counter securities not quoted on the NASDAQ system and securities listed
or traded on certain foreign exchanges whose operations are similar to the
U.S. over-the-counter market, at prices supplied by the pricing agent or
brokers selected by the Adviser if these prices are deemed to be
representative of market values at the regular close of business of the New
York Stock Exchange, (e) by appraising debt securities at prices supplied by a
pricing agent, selected by the Adviser, whose prices reflect broker/dealer
supplied valuations and electronic data processing techniques if those prices
are deemed by the Adviser to be representative of market values at the regular
close of business of the New York Stock Exchange, (f) by appraising options
and futures contracts at the last sale price on the market where such options
or futures contracts are principally traded, and (g) by appraising all other
securities and other assets, including debt securities for which prices are
supplied by a pricing agent but are not deemed by the Adviser to be
representative of market values, but excluding money market instruments with a
remaining maturity of sixty days or less and including restricted securities
and securities for which no market quotations are available, at fair value in
accordance with procedures approved by and determined in good faith by the
Directors, although the actual calculations may be done by others. Short-term
securities which mature in more than 60 days are valued at current market
quotations. Short-term securities which mature in 60 days or less are valued
at amortized cost if their term to maturity at purchase was 60 days or less,
or by amortizing their value on the 61st day prior to maturity if their
original term to maturity at purchase exceeded 60 days.
Events affecting the values of the portfolio securities that occur between
the time their prices are determined, generally on foreign exchanges and over-
the-counter markets, and the regular close of the New York Stock Exchange will
not be reflected in the Funds' calculations of net asset values unless the
Adviser believes that the particular event would materially affect net asset
value, in which case an adjustment would be made.
(C)
REPURCHASE AGREEMENTS. At the time the Funds enter into a repurchase
agreement, the value of the underlying security, including accrued interest,
will be equal to or exceed the value of the repurchase agreement and, in the
case of repurchase agreements exceeding one day, the value of the underlying
security, including accrued interest, is required during the term of the
agreement to be equal to or exceed the value of the repurchase agreement. The
underlying securities for all repurchase agreements are held in an account of
the respective Funds' custodian. In the case of repurchase agreements
exceeding one day, the market value of the underlying securities are monitored
by pricing them daily.
(D)
SECURITY TRANSACTIONS AND INVESTMENT INCOME. The Company records security
transactions on the trade date. Realized gains and losses on security
transactions are determined using the identified cost method and include gains
and losses from repayments of principal on mortgage backed securities.
Dividend income is recognized on the ex-dividend date and interest income is
accrued daily. Discounts on securities purchased for all Funds are accreted on
the constant yield method over the life of the respective securities or, if
shorter, over the period to the first date of call.
48
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(E)
FEDERAL INCOME TAXES. Each of the Funds is treated as a separate entity for
Federal income tax purposes. The Company's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of the taxable income to the shareholders of
each Fund within the allowable time limits. Therefore, no Federal income tax
provision is required.
Investment income received by a Fund from foreign sources may be subject to
foreign income taxes withheld at the source.
(F)
DIVIDENDS TO SHAREHOLDERS. Dividends are recorded on the ex-dividend date. For
Cash Management Portfolio, dividends are declared daily and paid monthly. Each
of the other Funds intends to declare and pay, as a dividend, substantially
all of their net investment income and net realized gains no less frequently
than once a year.
Income and capital gain dividends are determined in accordance with income
tax regulations which may differ from generally accepted accounting
principles.
(G)
ORGANIZATION COSTS. Costs incurred in connection with the initial organization
and registration of a Portfolio of the Company are amortized over 60 months
beginning with the commencement of operations of the respective Portfolio.
Organization costs for Cash Management Portfolio, paid by, and reimbursable
to, NYLIAC, aggregated approximately $50,700. Such costs are being amortized
beginning with the commencement of operations of the Portfolio on January 29,
1993. In the event that any of the initial shares purchased by NYLIAC are
redeemed, proceeds of such redemption will be reduced by the proportionate
amount of the unamortized deferred organizational expenses which the number of
shares redeemed bears to the total number of initial shares purchased. All of
the initial shares purchased by NYLIAC in Cash Management Portfolio were
redeemed on February 21, 1995. (Also see Note 7 for further discussion of this
redemption).
(H)
EXPENSES. Expenses with respect to the Company are allocated in proportion to
the net assets of the respective Funds when the expenses are incurred except
where allocations of direct expenses can otherwise fairly be made.
- -------------------------------------------------------------------------------
NOTE 3--Fees and Related Party Policies:
- -------------------------------------------------------------------------------
(A)
INVESTMENT ADVISORY AND ADMINISTRATION FEES. MacKay-Shields Financial
Corporation ("MacKay-Shields") acts as investment adviser to Cash Management
Portfolio under an Investment Advisory Agreement. MacKay-Shields is a
registered investment adviser, a wholly-owned subsidiary of NYLIFE Inc. and an
indirect wholly-owned subsidiary of New York Life Insurance Company ("New York
Life"). New York Life acts as investment adviser to Bond and Growth Equity
Portfolios under an Investment Advisory agreement.
49
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
NYLIAC, a wholly-owned subsidiary of New York Life, is Administrator for the
Company.
The Company, on behalf of each Fund, pays the Advisers and Administrator a
monthly fee for the services performed and the facilities furnished at an
approximate annual rate of the average daily net assets of each Fund as
follows:
<TABLE>
<CAPTION>
ADVISER ADMINISTRATOR
------- -------------
<S> <C> <C>
Cash Management Portfolio................................. .25% .20%
Bond Portfolio............................................ .25% .20%
Growth Equity Portfolio................................... .25% .20%
</TABLE>
The Administrator has voluntarily agreed to assume the Funds' operating
expenses through December 31, 1996, which on an annualized basis exceed the
percentages indicated below, after which, the voluntary expense limitation may
be terminated at any time.
<TABLE>
<S> <C>
Cash Management Portfolio.................................................. .62%
Bond Portfolio............................................................. .62%
Growth Equity Portfolio.................................................... .62%
</TABLE>
In connection with the expense limitation the Administrator assumed the
following expenses for the six month period ended June 30, 1995.
<TABLE>
<S> <C>
Cash Management Portfolio............................................. $144,974
Bond Portfolio........................................................ 426,588
Growth Equity Portfolio............................................... 728,240
</TABLE>
(B)
DIRECTORS FEES. Directors, other than those affiliated with New York Life,
MacKay-Shields or NYLIFE Securities, receive an annual fee of $16,000 and $750
for each Board meeting attended plus reimbursement for travel and out-of-
pocket expenses.
(C)
RECORDKEEPING FEES. NYLIAC provides recordkeeping services for Cash
Management, Bond and Growth Equity Portfolios. For the six month period ended
June 30, 1995 the Portfolios accrued recordkeeping fees as follows:
<TABLE>
<S> <C>
Cash Management Portfolio............................................. $ 93,931
Bond Portfolio........................................................ 471,857
Growth Equity Portfolio............................................... 844,691
</TABLE>
50
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 4--Federal Income Tax:
- --------------------------------------------------------------------------------
At December 31, 1994, for Federal income tax purposes, capital loss
carryforwards, as shown in the table below, are available to the extent
provided by regulations to offset future realized gains of each respective
Portfolio through the years indicated. To the extent that these loss
carryforwards are used to offset future capital gains, it is probable that the
capital gains so offset will not be distributed to shareholders. Additionally,
as shown in the table below, certain Funds intend to elect, to the extent
provided by regulations, to treat certain qualifying capital losses that arose
during the year ended December 31, 1994 as if they arose on January 1, 1995.
<TABLE>
<CAPTION>
CAPITAL LOSS CAPITAL LOSS
AVAILABLE THROUGH AMOUNT (000'S) DEFERRED (000'S)
----------------- -------------- ----------------
<S> <C> <C> <C>
Bond Portfolio................ 2002 $7,465 $0
====== ===
</TABLE>
- --------------------------------------------------------------------------------
NOTE 5--Acquisition of Money Market Portfolio:
- --------------------------------------------------------------------------------
On March 31, 1994, Cash Management Portfolio acquired all the net assets of
Money Market Portfolio pursuant to a plan of reorganization approved by the
shareholders of Cash Management and Money Market Portfolios on December 14,
1993. The acquisition was accomplished by a tax-free exchange of 37,601,126
shares of Cash Management Portfolio (valued at $37,601,126) for the 3,759,941
shares of Money Market Portfolio outstanding on March 31, 1994. Money Market's
net assets at that date ($37,597,525) were combined with those of Cash
Management Portfolio. The aggregate net assets of Cash Management and Money
Market Portfolios immediately before the acquisition were $28,516,066 and
$37,597,525, respectively. The combined net assets of Cash Management and Money
Market Portfolios immediately after the acquisition were $66,113,591.
- --------------------------------------------------------------------------------
NOTE 6--Redemption by NYLIAC of Initial Investment:
- --------------------------------------------------------------------------------
On February 21, 1995, NYLIAC redeemed all of its initial investment in Cash
Management Portfolio. In connection with the redemption of the initial shares,
NYLIAC reimbursed Cash Management Portfolio $24,131, which represented the
unamortized deferred organization expense of the Portfolio on the date of the
redemption.
51
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 7--Purchases and Sales of Securities (in 000's):
- --------------------------------------------------------------------------------
During the six month period ended June 30, 1995, purchases and sales of
securities, other than securities subject to repurchase transactions and short-
term securities, were as follows:
<TABLE>
<CAPTION>
BOND GROWTH EQUITY
PORTFOLIO PORTFOLIO
PURCHASES SALES PURCHASES SALES
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Securities................ $102,000 $71,884 $ -- $ --
All others................................ 14,621 20,977 213,778 189,511
------------------------------------
Total..................................... $116,621 $92,861 $213,778 $189,511
====================================
</TABLE>
- --------------------------------------------------------------------------------
NOTE 8--Capital Share Transactions (in 000's):
- --------------------------------------------------------------------------------
Transactions in capital shares for the six month period ended June 30, 1995 and
the year ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
CASH MANAGEMENT BOND GROWTH EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
1995 1994 1995 1994 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold....................... 50,636 99,252 900 1,676 1,086 2,091
Shares issued in reinvestment of
dividends and distributions...... 1,790 2,011 4 1,165 3 1,616
Shares issued in connection with
acquisition of Money Market
Portfolio........................ -- 37,601 -- -- -- --
--------------------------------------------
52,426 138,864 904 2,841 1,089 3,707
Shares redeemed................... 60,296 94,481 1,264 2,776 1,043 1,642
--------------------------------------------
Net increase (decrease)........... (7,870) 44,383 (360) 65 46 2,065
============================================
</TABLE>
52
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
53
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
54
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
Officers and Directors
Richard M. Kernan, Jr., Chairman,
Chief Executive Officer and Director
Anne F. Pollack, President,
Chief Administrative Officer and Director
Michael J. Drabb, Director
Jill Feinberg, Director
Daniel Herrick, Director
Robert D. Rock, Director and Vice President
Roman L. Weil, Director
Richard W. Zuccaro, Tax Vice President
Anthony W. Polis, Treasurer
A. Thomas Smith III, Secretary
Marc J. Chalfin, Controller
Investment Advisers
MacKay-Shields Financial Corporation
New York Life Insurance Company
Administrator
New York Life Insurance and Annuity Corporation
Custodians
The Bank of New York
Chemical Bank
Independent Accountants
Price Waterhouse LLP
Legal Counsel
Jorden Burt & Berenson
The financial information included herein is taken from the records of the
Funds without examination by the Funds' independent accountants, who do not
express an opinion thereon.
<PAGE>
[LOGO OF NEW YORK LIFE] New York Life Insurance and Annuity Corporation
P.O. Box 299, Madison Square Station
New York, NY 10159
Bulk Rate
U.S. Postage
PAID
New York, N.Y.
Permit NO. 6218
[LOGO OF RECYCLED PAPER]
Printed on
recycled
paper
18513 (895)
New York Life Insurance
and Annuity Corporation
MFA Separate Accounts
I and II
UNAUDITED
SEMI-ANNUAL REPORT
-------------------------------------
New York Life
MFA Series Fund, Inc. June 30, 1995
-------------------------------------
This is a Report by the
MFA Series Fund, Inc. for
the general information of
Multi-Funded Annuity
policyowners. It must be
accompanied or preceded
by a current prospectus if
it is given to anyone who
is not an owner of a Multi-
Funded Annuity policy.
This Report does not offer
for sale or solicit orders to
purchase securities.
New York Life Insurance [LOGO OF NEW YORK LIFE]
and Annuity Corporation
