<PAGE> 1
PROSPECTUS DATED MAY 1, 1996
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is intended to provide a wide range of investment
alternatives through its seven separate Portfolios, each of which is, for
investment and federal tax purposes, in effect a separate fund. A separate class
of stock will be issued for each Portfolio.
Shares of all Portfolios of the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund the benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and for allocation to MONY
America Variable Account A and MONY Variable Account A to fund benefits under
Flexible Payment Variable Annuity Contracts issued by those companies. Shares of
all Portfolios of the Fund, other than the Government Securities Portfolio, are
sold to MONY America and MONY for allocation to MONY America Variable Account S
and MONY Variable Account S to fund benefits under Variable Life Insurance with
Additional Premium Option contracts issued by those companies and to MONY for
allocation to Keynote Series Account ("Keynote") to fund benefits under
Individual Variable Annuity Contracts. These variable accounts ("Variable
Accounts") invest in shares of the Fund in accordance with allocation
instructions received from Contract holders. Such allocation rights are further
described in the attached prospectus for one of the contracts. The Variable
Accounts invest in shares of the Fund through subaccounts that correspond to the
Portfolios. The Variable Accounts will redeem shares of the Fund to the extent
necessary to provide benefits under the Contracts or for such other purposes as
may be consistent with the Contracts.
The investment objectives of the Portfolios are:
EQUITY INCOME PORTFOLIO: A high level of current income, through
investment in a diversified portfolio of common stocks with relatively high
current yields. Capital appreciation is a secondary objective.
EQUITY GROWTH PORTFOLIO: A high level of capital appreciation through
investment in a diversified portfolio of common stocks with potential for
above average growth in earnings and dividends. Current income is a
secondary objective.
INTERMEDIATE TERM BOND PORTFOLIO: The maximum income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities, U.S. Government obligations, and
money market instruments, together having a dollar-weighted average life of
between 4 and 8 years.
LONG TERM BOND PORTFOLIO: The maximum income over the longer term
consistent with preservation of capital, through investment in highly-rated
debt securities, U.S. Government obligations, and money market instruments,
together having a dollar-weighted average life of more than 8 years.
GOVERNMENT SECURITIES PORTFOLIO: The maximum current income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities of the United States government
and its agencies and money market instruments, with a dollar-weighted
average life of up to ten years at the time of purchase.
MONEY MARKET PORTFOLIO: The maximum current income consistent with
preservation of capital and maintenance of liquidity, through investment in
money market instruments. The Money Market Portfolio is neither insured nor
guaranteed by the United States Government, and, while the Money Market
Portfolio seeks to maintain a stable net asset value of $1.00 per share,
there is no assurance that it will be able to do so.
DIVERSIFIED PORTFOLIO: A high total investment return consistent with a
diversified, managed mix of common stocks, bonds and money market
instruments.
There can be no assurance that the objective of any Portfolio will be realized.
See INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS at pages 11-15.
---------------------
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE FUND THAT A
PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING. READ THIS PROSPECTUS
CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE.
---------------------
ADDITIONAL INFORMATION ABOUT THE FUND HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY CALLING
1-800-487-6669 OR BY SENDING A REQUEST TO: MONY SERIES FUND, INC., 1740
BROADWAY, NEW YORK, NEW YORK 10019. THE STATEMENT OF ADDITIONAL INFORMATION,
DATED MAY 1, 1996, IS INCORPORATED BY REFERENCE INTO THIS PROSPECTUS.
---------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE> 2
MONY SERIES FUND, INC.
---------------------
PROSPECTUS
---------------------
NO DEALER, SALESMAN, OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND OR THE INVESTMENT
ADVISER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
---------------------
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PROSPECTUS SUMMARY.................................................................... 1
The Fund............................................................................ 1
The Accounts and the Contracts...................................................... 1
Investment Objectives and Risks of the Portfolios................................... 1
Investment Adviser.................................................................. 2
Investment Management Fees and Expenses............................................. 2
Responsibility for Day-to-Day Management of the Fund................................ 3
Purchase and Redemption of Shares................................................... 3
Financial Highlights................................................................ 3
Financial Highlights Table.......................................................... 4
STRUCTURE OF THE FUND................................................................. 11
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS.................................. 11
Equity Income Portfolio............................................................. 11
Equity Growth Portfolio............................................................. 12
Intermediate Term Bond Portfolio.................................................... 12
Long Term Bond Portfolio............................................................ 13
Government Securities Portfolio..................................................... 13
Money Market Portfolio.............................................................. 14
Diversified Portfolio............................................................... 14
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS.................................. 15
Loans of Portfolio Securities....................................................... 15
State Law Restrictions.............................................................. 16
Federal Income Tax Status........................................................... 17
MANAGEMENT OF THE FUND................................................................ 18
Investment Management Arrangements and Expenses..................................... 18
Responsibility for Day-to-Day Management of the Fund................................ 19
Custodian, Transfer Agent, and Dividend Disbursing Agent............................ 19
PURCHASE AND REDEMPTION OF SHARES..................................................... 20
DETERMINATION OF NET ASSET VALUE...................................................... 20
Valuation of Equity Income and Equity Growth Portfolios............................. 21
Valuation of Intermediate Term Bond, Long Term Bond, and Government Securities
Portfolios....................................................................... 21
Valuation of Money Market Portfolio................................................. 21
Valuation of Diversified Portfolio.................................................. 22
SHARES IN THE FUND.................................................................... 22
Voting Rights....................................................................... 22
Dividends, Distributions, and Taxes................................................. 23
Shareholder Reports and Inquiries................................................... 24
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS.......................................... 24
ADDITIONAL INFORMATION................................................................ 24
Appendix A: Securities in Which the Money Market Portfolio May Currently Invest....... A-1
Appendix B: Debt Ratings.............................................................. B-1
</TABLE>
(i)
<PAGE> 3
PROSPECTUS SUMMARY
The following summary should be read in conjunction with the detailed
information appearing elsewhere in this Prospectus.
THE FUND
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is a Maryland corporation organized on December 14, 1984.
The Fund currently consists of seven (7) separate Portfolios: the Equity Income
Portfolio, the Equity Growth Portfolio, the Intermediate Term Bond Portfolio,
the Long Term Bond Portfolio, the Government Securities Portfolio, the Money
Market Portfolio, and the Diversified Portfolio. Each Portfolio is, for
investment and federal tax purposes, in effect a separate investment fund, and
the Fund will issue a separate class of capital stock for each Portfolio. In
other respects the Fund is treated as one entity. For more detailed information,
see STRUCTURE OF THE FUND at page 11.
THE ACCOUNTS AND THE CONTRACTS
Shares of all Portfolios in the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and to those companies for
allocation to MONY America Variable Account A and MONY Variable Account A to
fund benefits under Flexible Payment Variable Annuity contracts issued by those
companies. Shares of all Portfolios, other than the Government Securities
Portfolio, are also sold to the MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option contracts issued by those
companies. In addition, shares of the Fund are sold to MONY for allocation to
Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts and, until June 24, 1994, were sold to MONY for allocation to
Keynote Series Account to fund benefits under Group Annuity Contracts issued by
MONY. Each Contract holder allocates the net premiums and the assets relating to
these Contracts, within the limitations described in the Contracts, among the
subaccounts of these variable accounts ("Variable Accounts") which in turn are
invested in the corresponding Portfolios of the Fund. Contract holders should
consider that the investment return experience of the Portfolios will affect the
value of the Contracts and may affect the amount of benefits received under the
Contracts. The attached prospectus for the Contracts describes the Contracts and
the relationship between changes in the value of shares of each Portfolio and
changes in the benefits payable under the Contracts. The rights of the Variable
Accounts as shareholders should be distinguished from the rights of a Contract
holder which are described in the contracts. Because the shares of the Fund will
be sold to MONY America and MONY for allocation to the Variable Accounts, the
terms "shareholder" or "shareholders" in this Prospectus refer to those
Companies.
INVESTMENT OBJECTIVES AND RISKS OF THE PORTFOLIOS
Each of the Portfolios seeks to achieve a different investment objective.
Accordingly, each Portfolio can be expected to have different investment results
and to be subject to different financial and market risks and current income
volatility. Financial risk refers to the ability of an issuer of a debt security
to pay principal and interest on that security, and to the earnings stability
and overall financial soundness of an issuer of an equity security. Market risk
refers to the degree to which the price of a security will react to changes in
conditions in securities markets in general and, with particular reference to
debt securities, to changes in the overall level of interest rates. Current
income volatility refers to the degree and rapidity with which changes in the
overall level of interest rates become reflected in the level of current income
of the Portfolios.
The investment objectives and risks of the Portfolios are:
Equity Income Portfolio: The Equity Income Portfolio seeks a high level of
current income with capital appreciation as the secondary objective. The
Portfolio will invest primarily in common stocks and other equity securities.
The Equity Income Portfolio should be subject to moderate levels of both
financial and market risk.
1
<PAGE> 4
Equity Growth Portfolio: The Equity Growth Portfolio seeks long-term
appreciation of capital with current income as the secondary objective. The
Portfolio will invest primarily in common stocks and other equity securities.
The Equity Growth Portfolio should be subject to a moderate level of financial
risk and a somewhat higher level of market risk than the Equity Income
Portfolio.
Intermediate Term Bond Portfolio: The Intermediate Term Bond Portfolio,
having a dollar-weighted average life of between 4 and 8 years, seeks to
maximize income over the intermediate term consistent with preservation of
capital. The Portfolio will invest primarily in intermediate term bonds. The
Intermediate Term Bond Portfolio should be subject to relatively little
financial risk and a moderate level of market risk.
Long Term Bond Portfolio: The Long Term Bond Portfolio, having a
dollar-weighted average life of more than 8 years, seeks to maximize income over
the longer term consistent with preservation of capital. The Portfolio will
invest primarily in long term bonds. The Long Term Bond Portfolio should be
subject to relatively little financial risk and a higher level of market risk
than the Intermediate Term Bond Portfolio.
Government Securities Portfolio: The Government Securities Portfolio seeks
to maximize current income over the intermediate term consistent with
preservation of capital, through investment in highly-rated debt securities of
the United States government and its agencies and money market instruments, with
a dollar-weighted average life of up to ten years at the time of purchase. The
Government Securities Portfolio should be subject to relatively little financial
risk and a moderate level of market risk.
Money Market Portfolio: The Money Market Portfolio seeks to maximize
current income consistent with the preservation of capital and the maintenance
of liquidity. The Portfolio will invest primarily in money market instruments.
The Money Market Portfolio should be subject to little market risk or financial
risk but should be subject to a high level of current income volatility.
Diversified Portfolio: The Diversified Portfolio seeks a total investment
return consistent with a diversified portfolio having a managed mix of common
stocks, bonds and money market instruments. The Portfolio will invest only in
those types of securities that the Equity Income, Equity Growth, Intermediate
Term Bond, Long Term Bond, Government Securities, Money Market, and Diversified
Portfolios may invest in. The mix of investments will be determined by the
Investment Adviser based on its view of market conditions. The Diversified
Portfolio will be subject to varying levels of market and financial risk
depending upon its asset mix. It may at times be subject to a relatively high
level of current income volatility.
There can be no assurance that the objectives of any Portfolio will be
realized. For more detailed information, see INVESTMENT OBJECTIVES AND POLICIES
OF THE PORTFOLIOS at pages 11-15 and INVESTMENT RESTRICTIONS APPLICABLE TO THE
PORTFOLIOS at pages 15-17.
INVESTMENT ADVISER
The Investment Adviser of the Equity Income, Equity Growth, Intermediate
Term Bond, Long Term Bond, Government Securities, Money Market, and Diversified
Portfolios of the Fund is MONY America, a wholly-owned subsidiary of MONY. MONY
America has entered into a Services Agreement with MONY for the provision of
personnel, equipment, facilities and other services in order to carry out its
duties as investment adviser to the Fund. For more detailed information, see
INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES at page 18.
INVESTMENT MANAGEMENT FEES AND EXPENSES
MONY America's fee for its investment management services to the Equity
Income, Equity Growth, Intermediate Term Bond, Long Term Bond, Government
Securities, Money Market, and Diversified Portfolios of the Fund is a daily
charge equal to an annual rate of .40 percent of the first $400 million of the
aggregate average daily net assets of those Portfolios, .35 percent of the next
$400 million of the aggregate average daily net assets of those Portfolios, and
.30 percent of the aggregate average daily net assets of those Portfolios in
excess of $800 million. MONY America has agreed to bear all expenses associated
with organizing the Fund, the initial registration of its securities, the
calculation of the net asset value of the Portfolios, and the compensation of
the Fund's directors, officers and employees who are interested persons of
2
<PAGE> 5
MONY America. All other expenses will be borne by the Fund, subject to certain
limitations imposed by state law. For more detailed information, see INVESTMENT
MANAGEMENT ARRANGEMENTS AND EXPENSES at page 18.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
Day to day management of all the Portfolios of the Fund are undertaken by a
committee of MONY America, investment adviser to the Fund.
PURCHASE AND REDEMPTION OF SHARES
Shares in each of the Portfolios are offered continuously to MONY and MONY
America for allocation to the Variable Accounts at prices equal to their
respective net asset values per share, without the imposition of an additional
sales charge at the Fund level. The shares' redemption prices are also equal to
their respective net asset values per share as next determined after the receipt
of proper notice of redemption. For more detailed information, see DETERMINATION
OF NET ASSET VALUE at page 20.
FINANCIAL HIGHLIGHTS
Set forth on the following pages are highlights of the operations of each
Portfolio of the Fund. Additional financial information is contained in the
Statement of Additional Information of the Fund and in the Annual Report of the
Fund, both of which are available, free of charge, by contacting the Fund at the
address or at the telephone number set forth on the cover of this Prospectus.
The Annual Report also contains a discussion of the performance of the Fund
during 1995 as well as line graphs which depict the value at inception and for
each year subsequent to inception of a $10,000 investment made in each Portfolio
of the Fund. These graphs also depict the performance of an investment over the
same period in securities which comprise a broad based, unmanaged securities
market index.
3
<PAGE> 6
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
---------- ---------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year................... $ 20.59 $ 20.70 $ 19.68 $ 20.25 $ 15.38 $ 15.90
---------- ---------- ----------- ----------- ----------- ----------
Income from investment
operations
Net investment income..... 0.39 0.36 0.33 0.29 0.25 0.27
Net gains (losses) on
investments (both
realized and
unrealized)............. 5.90 0.09 1.59 (0.46) 5.08 (0.50)
---------- ---------- ----------- ----------- ----------- ----------
Total from investment
operations............ 6.29 0.45 1.92 (0.17) 5.33 (0.23)
Less distributions
Dividends (from net
investment income)...... (0.39) (0.36) (0.33) (0.29) (0.25) (0.29)
Distributions (from
realized capital
gains).................. (1.34) (0.20) (0.57) (0.04) (0.17) 0.00
Distributions (from
additional paid-in
capital)................ 0.00 0.00 0.00 (0.03) (0.04) 0.00
Distributions (in excess
of realized capital
gain)................... (0.04) 0.00 0.00 (0.04) 0.00 0.00
---------- ---------- ----------- ----------- ----------- ----------
Total distributions..... (1.77) (0.56) (0.90) (0.40) (0.46) (0.29)
Net asset value, end of
year...................... $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25 $ 15.38
========== ========== =========== =========== =========== ==========
Total return............ 30.54% 2.15% 9.71% (0.84%) 34.66% (1.45%)
Ratios/Supplemental Data
Net assets, end of year..... $1,873,569 $1,556,536 $58,963,456 $39,979,012 $26,219,999 $7,163,679
Ratio of net investment
income to average net
assets.................... 1.54% 2.11% 1.79% 1.72% 2.09% 2.42%
Ratio of expenses to average
net assets................ 1.28% 0.53% 0.50% 0.53% 0.59% 0.77%
Portfolio turnover rate..... 38.17% 55.09% 59.15% 39.93% 32.33% 31.21%
<CAPTION>
1989 1988 1987 1986
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning
of year................... $ 12.78 $ 11.81 $ 12.07 $ 11.07
---------- ---------- ---------- ----------
Income from investment
operations
Net investment income..... 0.28 0.22 0.15 0.18
Net gains (losses) on
investments (both
realized and
unrealized)............. 3.66 1.20 0.93 0.98
---------- ---------- ---------- ----------
Total from investment
operations............ 3.94 1.42 1.08 1.16
Less distributions
Dividends (from net
investment income)...... (0.27) (0.21) (0.42) (0.16)
Distributions (from
realized capital
gains).................. (0.55) (0.24) (0.92) 0.00
Distributions (from
additional paid-in
capital)................ 0.00 0.00 0.00 0.00
Distributions (in excess
of realized capital
gain)................... 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
Total distributions..... (0.82) (0.45) (1.34) (0.16)
Net asset value, end of
year...................... $ 15.90 $ 12.78 $ 11.81 $ 12.07
========== ========== ========== ==========
Total return............ 30.83% 12.02% 8.95% 10.48%
Ratios/Supplemental Data
Net assets, end of year..... $5,672,894 $3,957,234 $2,934,478 $2,539,872
Ratio of net investment
income to average net
assets.................... 2.00% 1.70% 1.04% 1.51%
Ratio of expenses to average
net assets................ 0.96% 1.04% 1.50% 1.50%
Portfolio turnover rate..... 29.91% 9.51% 18.13% 55.46%
</TABLE>
4
<PAGE> 7
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 15.53 $ 16.43 $ 15.56 $ 14.64 $ 12.70 $ 14.26
----------- ----------- ------------ ------------ ------------ -----------
Income from investment operations
Net investment income................. 0.69 0.64 0.52 0.59 0.64 0.54
Net gains (losses) on investments
(both realized and unrealized)...... 4.45 (0.51) 1.68 0.92 1.94 (1.50)
----------- ----------- ------------ ------------ ------------ -----------
Total from investment operations.... 5.14 0.13 2.20 1.51 2.58 (0.96)
Less distributions
Dividends (from net investment
income)............................. (0.65) (0.64) (0.52) (0.59) (0.64) (0.60)
Distributions (from realized capital
gains).............................. (0.41) (0.39) (0.81) 0.00* 0.00* 0.00
----------- ----------- ------------ ------------ ------------ -----------
Total distributions................. (1.06) (1.03) (1.33) (0.59) (0.64) (0.60)
Net asset value, end of year............ $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64 $ 12.70
=========== =========== ============ ============ ============ ===========
Total return........................ 33.12% 0.78% 14.14% 10.31% 20.31% (6.73%)
Ratios/Supplemental Data
Net assets, end of year................. $18,091,035 $16,204,925 $151,330,311 $121,540,392 $118,114,947 $99,878,151
Ratio of net investment income to
average net assets.................... 3.54% 3.53% 3.22% 3.68% 4.46% 5.39%
Ratio of expenses to average net
assets................................ 0.56% 0.48% 0.46% 0.46% 0.49% 0.52%
Portfolio turnover rate................. 26.80% 32.48% 28.48% 35.62% 25.84% 8.89%
<CAPTION>
1989 1988 1987 1986
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 12.67 $ 12.03 $ 13.03 $ 11.30
---------- ---------- ---------- ----------
Income from investment operations
Net investment income................. 0.64 0.70 0.44 0.42
Net gains (losses) on investments
(both realized and unrealized)...... 2.20 1.64 0.54 1.74
---------- ---------- ---------- ----------
Total from investment operations.... 2.84 2.34 0.98 2.16
Less distributions
Dividends (from net investment
income)............................. (0.64) (0.66) (0.77) (0.43)
Distributions (from realized capital
gains).............................. (0.61) (1.04) (1.21) 0.00
---------- ---------- ---------- ----------
Total distributions................. (1.25) (1.70) (1.98) (0.43)
Net asset value, end of year............ $ 14.26 $ 12.67 $ 12.03 $ 13.03
========== ========== ========== ==========
Total return........................ 22.42% 19.45% 7.52% 19.12%
Ratios/Supplemental Data
Net assets, end of year................. $6,185,876 $5,054,514 $2,945,497 $2,776,312
Ratio of net investment income to
average net assets.................... 4.66% 5.24% 3.02% 3.30%
Ratio of expenses to average net
assets................................ 0.88% 0.91% 1.50% 1.50%
Portfolio turnover rate................. 19.55% 22.70% 13.73% 25.70%
</TABLE>
- ---------------
* Less than $.01 per share.
5
<PAGE> 8
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69 $ 9.85
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.63 0.60 0.47 0.59 0.77 0.84
Net gains (losses) on investments
(both realized and unrealized)... 0.82 (0.76) 0.34 0.11 0.71 (0.16)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 1.45 (0.16) 0.81 0.70 1.48 0.68
Less distributions
Dividends (from net investment
income).......................... (0.63) (0.60) (0.47) (0.59) (0.77) (0.84)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.16) 0.00* 0.00 0.00
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00 (0.18) 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.63) (0.60) (0.63) (0.59) (0.95) (0.84)
Net asset value, end of year........ $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69
=========== =========== =========== =========== =========== ===========
Total return.................... 14.82% (1.52%) 7.84% 6.85% 15.27% 6.90%
Ratios/Supplemental Data
Net assets, end of year............. $37,519,833 $32,283,693 $31,326,168 $20,911,161 $22,005,519 $20,260,361
Ratio of net investment income to
average net assets................. 6.10% 5.66% 5.26% 6.24% 7.88% 8.52%
Ratio of expenses to average net
assets............................. 0.49% 0.52% 0.52% 0.53% 0.51% 0.54%
Portfolio turnover rate............. 32.07% 25.41% 50.61% 62.27% 55.03% 20.06%
<CAPTION>
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.63 $ 9.93 $ 12.15 $ 11.92
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.90 0.86 0.89 0.98
Net gains (losses) on investments
(both realized and unrealized)... 0.22 (0.29) (0.88) 0.47
----------- ----------- ----------- -----------
Total from investment
operations..................... 1.12 0.57 0.01 1.45
Less distributions
Dividends (from net investment
income).......................... (0.90) (0.87) (1.59) (1.12)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.64) (0.10)
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............. (0.90) (0.87) (2.23) (1.22)
Net asset value, end of year........ $ 9.85 $ 9.63 $ 9.93 $ 12.15
=========== =========== =========== ===========
Total return.................... 11.63% 5.74% 0.08% 12.16%
Ratios/Supplemental Data
Net assets, end of year............. $20,419,237 $23,192,883 $25,217,761 $27,051,933
Ratio of net investment income to
average net assets................. 8.67% 8.43% 8.18% 8.34%
Ratio of expenses to average net
assets............................. 0.60% 0.55% 0.60% 0.60%
Portfolio turnover rate............. 30.99% 24.77% 32.23% 81.92%
</TABLE>
- ---------------
* Less than $.01 per share.
6
<PAGE> 9
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47 $ 10.70
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.74 0.84 0.50 0.81 0.72 0.90
Net gains (losses) on investments
(both realized and unrealized)... 2.41 (1.58) 1.09 0.16 1.12 (0.23)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 3.15 (0.74) 1.59 0.97 1.84 0.67
Less distributions
Dividends (from net investment
income).......................... (0.74) (0.84) (0.50) (0.74) (0.72) (0.90)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.23) 0.00* (0.37) 0.00
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 (0.07) (0.19) 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.74) (0.84) (0.73) (0.81) (1.28) (0.90)
Net asset value, end of year........ $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47
=========== =========== =========== =========== =========== ===========
Total return.................... 30.04% (6.14%) 14.21% 8.79% 17.57% 6.26%
Ratios/Supplemental Data
Net assets, end of year............. $62,017,889 $44,012,329 $63,044,619 $29,564,159 $23,207,734 $20,532,817
Ratio of net investment income to
average net assets................. 6.58% 6.45% 5.69% 7.71% 8.12% 8.72%
Ratio of expenses to average net
assets............................. 0.48% 0.49% 0.48% 0.51% 0.51% 0.53%
Portfolio turnover rate............. 79.45% 110.19% 45.93% 0.17% 63.68% 27.49%
<CAPTION>
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.97 $ 10.28 $ 12.87 $ 12.32
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.96 0.96 0.92 1.02
Net gains (losses) on investments
(both realized and unrealized)... 0.73 (0.10) (1.11) 0.81
----------- ----------- ----------- -----------
Total from investment
operations..................... 1.69 0.86 (0.19) 1.83
Less distributions
Dividends (from net investment
income).......................... (0.96) (1.17) (1.58) (0.91)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.82) (0.37)
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............. (0.96) (1.17) (2.40) (1.28)
Net asset value, end of year........ $ 10.70 $ 9.97 $ 10.28 $ 12.87
=========== =========== =========== ===========
Total return.................... 16.95% 8.37% (1.48%) 14.85%
Ratios/Supplemental Data
Net assets, end of year............. $20,770,552 $23,840,760 $26,798,016 $28,623,485
Ratio of net investment income to
average net assets................. 8.54% 9.04% 8.44% 8.27%
Ratio of expenses to average net
assets............................. 0.64% 0.54% 0.60% 0.60%
Portfolio turnover rate............. 36.00% 42.79% 128.24% 68.77%
</TABLE>
- ---------------
* Less than $.01 per share.
7
<PAGE> 10
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER
------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
---------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 13.14 $ 13.47 $ 12.64 $ 13.13 $ 11.75 $ 12.27
---------- ---------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.43 0.38 0.37 0.42 0.53 0.70
Net gains (losses) on investments
(both realized and unrealized)..... 3.03 (0.24) 1.01 (0.29) 1.86 (0.40)
---------- ---------- ----------- ----------- ----------- -----------
Total from investment
operations....................... 3.46 0.14 1.38 0.13 2.39 0.30
Less distributions
Dividends (from net investment
income)............................ (0.43) (0.38) (0.37) (0.42) (0.53) (0.71)
Distributions (from realized capital
gains)............................. (0.43) (0.09) (0.18) (0.20) (0.48) (0.11)
Distributions (in excess of realized
capital gain)...................... (0.02) 0.00 0.00* 0.00* 0.00 0.00
---------- ---------- ----------- ----------- ----------- -----------
Total distributions............... (0.88) (0.47) (0.55) (0.62) (1.01) (0.82)
Net asset value, end of year.......... $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13 $ 11.75
========== ========== =========== =========== =========== ===========
Total return...................... 26.32% 1.03% 10.92% 0.99% 20.34% 2.44%
Ratios/Supplemental Data
Net assets, end of year............... $3,272,075 $2,860,700 $34,076,498 $22,704,133 $16,829,653 $10,373,263
Ratio of net investment income to
average net assets................... 2.68% 3.19% 3.13% 3.68% 4.72% 6.04%
Ratio of expenses to average net
assets............................... 0.95% 0.57% 0.53% 0.57% 0.60% 0.63%
Portfolio turnover rate............... 27.69% 51.38% 28.98% 26.44% 22.03% 11.49%
<CAPTION>
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 11.26 $ 11.00 $ 12.18 $ 11.23
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.75 0.71 0.69 0.69
Net gains (losses) on investments
(both realized and unrealized)..... 1.74 0.36 (0.21) 0.82
----------- ----------- ----------- -----------
Total from investment
operations....................... 2.49 1.07 0.48 1.51
Less distributions
Dividends (from net investment
income)............................ (0.75) (0.70) (1.33) (0.56)
Distributions (from realized capital
gains)............................. (0.73) (0.11) (0.33) 0.00
Distributions (in excess of realized
capital gain)...................... 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............... (1.48) (0.81) (1.66) (0.56)
Net asset value, end of year.......... $ 12.27 $ 11.26 $ 11.00 $ 12.18
=========== =========== =========== ===========
Total return...................... 22.11% 9.73% 3.94% 13.45%
Ratios/Supplemental Data
Net assets, end of year............... $12,319,454 $16,050,117 $13,039,577 $13,076,156
Ratio of net investment income to
average net assets................... 5.86% 6.10% 5.35% 5.85%
Ratio of expenses to average net
assets............................... 0.67% 0.62% 0.75% 0.84%
Portfolio turnover rate............... 8.06% 4.46% 12.31% 17.11%
</TABLE>
- ---------------
* Less than $.01 per share.
8
<PAGE> 11
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.05 0.03 0.01 0.03 0.06 0.07
Less distributions
Dividends (from net investment
income)............................ (0.05) (0.03) (0.01) (0.03) (0.06) (0.07)
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ =========== =========== =========== =========== ===========
Total return...................... 5.57% 5.33% 2.75% 3.31% 5.60% 7.22%
Ratios/Supplemental Data
Net assets, end of year............... $110,366,978 $83,352,731 $65,474,860 $50,892,593 $34,642,974 $26,924,389
Ratio of net investment income to
average net assets.................. 5.30% 3.77% 2.62% 3.17% 5.80% 7.63%
Ratio of expenses to average net
assets.............................. 0.46% 0.49% 0.46% 0.48% 0.54% 0.54%
<CAPTION>
1989 1988 1987 1986
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ----------
Income from investment operations
Net investment income............... 0.08 0.07 0.05 0.05
Less distributions
Dividends (from net investment
income)............................ (0.08) (0.07) (0.05) (0.05)
----------- ---------- ---------- ----------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ==========
Total return...................... 8.20% 6.56% 5.34% 5.26%
Ratios/Supplemental Data
Net assets, end of year............... $10,817,623 $4,552,241 $2,883,644 $2,271,034
Ratio of net investment income to
average net assets.................. 8.06% 6.77% 5.36% 5.23%
Ratio of expenses to average net
assets.............................. 0.92% 1.08% 1.50% 1.50%
</TABLE>
9
<PAGE> 12
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE
PERIOD
MAY 1, 1991**
FOR THE YEARS ENDED DECEMBER 31, THROUGH
------------------------------------------------------ DECEMBER 31,
1995 1994 1993 1992 1991
--------- --------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 9.51 $ 9.72 $ 9.66 $ 10.70 $ 10.00
---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income................................ 0.34 0.05 0.52 1.00 0.27
Net gains (losses) on investments (both realized and
unrealized)......................................... 0.70 (0.21) 0.27 (0.25) 0.70
---------- ---------- ----------- ----------- -----------
Total from investment operations.................. 1.04 (0.16) 0.79 0.75 0.97
Less distributions
Dividends (from net investment income)............... (0.34) (0.05) (0.52) (1.00) (0.27)
Distributions (from realized capital gains).......... (0.00)* 0.00 (0.21) (0.79) 0.00
Distributions (in excess of realized capital
gains).............................................. (0.00) 0.00 0.00* 0.00 0.00
---------- ---------- ----------- ----------- -----------
Total distributions............................... (0.34) (0.05) (0.73) (1.79) (0.27)
Net asset value, end of period......................... $ 10.21 $ 9.51 $ 9.72 $ 9.66 $ 10.70
========== ========== =========== =========== ===========
Total return...................................... 10.89% (2.68%)++ 8.18% 7.01% 9.70%+
Ratios/Supplemental Data
Net assets, end of period.............................. $8,555,893 $1,204,231 $20,036,097 $19,096,791 $42,235,195
Ratio of net investment income to average net assets... 6.10% 5.43%++ 5.06% 6.25% 5.75%+++
Ratio of expenses to average net assets................ 0.74% 0.57%++ 0.53% 0.50% 0.43%+++
Portfolio turnover rate................................ 0.28% 7.82% 41.01% 28.28% 151.81%
</TABLE>
- ---------------
* Less than $.01 per share.
** Commencement of operations.
+ Average annual.
++ Annualized since Portfolio was dormant from June 24, 1994 to November 18,
1994.
+++ Annualized.
10
<PAGE> 13
STRUCTURE OF THE FUND
The Fund, a Maryland corporation organized on December 14, 1984, currently
is composed of seven different Portfolios that are, in effect, separate
investment funds: the Equity Income Portfolio, the Equity Growth Portfolio, the
Intermediate Term Bond Portfolio, the Long Term Bond Portfolio, the Government
Securities Portfolio, the Money Market Portfolio, and the Diversified Portfolio.
Until November 18, 1994, the Government Securities Portfolio had been known as
the Intermediate Government Bond Portfolio. The Fund issues a separate class of
capital stock for each Portfolio. Each share of capital stock issued with
respect to a Portfolio will have a pro-rata interest in the assets of that
Portfolio and will have no interest in the assets of any other Portfolio. Each
Portfolio bears its own liabilities and also its proportionate share of the
general liabilities of the Fund. The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, diversified, management
investment company. This registration does not imply any supervision by the
Securities and Exchange Commission over the Fund's management or its investment
policies or practices.
Shares of the Fund allocated to Keynote were presented for redemption in
kind on June 24, 1994. This redemption is as a result of the sale by MONY of its
group pension operation to AEGON USA, Inc. ("AEGON") and the transfer of group
annuity contracts, the purchase payments for which are allocated to Keynote, to
a wholly-owned life insurance subsidiary of AEGON. As a part of the agreement of
sale, shares of another series mutual fund were substituted for shares of the
Fund allocated to Keynote.
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS
Each Portfolio of the Fund has a different investment objective which it
pursues through separate investment policies as described below. Since each
Portfolio has a different investment objective, each can be expected to have
different investment results and incur different market and financial risks. The
Fund may in the future establish other Portfolios with different investment
objectives.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which for this purpose and under the 1940 Act
means the lesser of (i) 67 percent of the Portfolio shares represented at a
meeting at which more than 50 percent of the outstanding Portfolio shares are
represented or (ii) more than 50 percent of the outstanding Portfolio shares).
The policies by which a Portfolio seeks to achieve its investment objectives,
however, are not fundamental. They may be changed by the Board of Directors of
the Fund without shareholder approval.
Each Portfolio has a different portfolio turnover rate which is the
percentage computed by dividing the lesser of portfolio purchases or sales by
the average value of the Portfolio, in each case excluding securities with
maturities at the time of acquisition of one year or less. Brokerage expenses
can be expected to be higher as a result of higher turnover rates. The rate of
portfolio turnover is not a limiting factor when it is deemed appropriate to
purchase or sell securities of a Portfolio.
There is no guarantee that any of the objectives of any Portfolio will be
met. The following paragraphs describe the investment objectives, policies and
portfolio turnover rates of each Portfolio.
EQUITY INCOME PORTFOLIO
The primary objective of the Equity Income Portfolio is a high level of
current income with capital appreciation as the secondary objective.
The Equity Income Portfolio will seek to achieve this objective by
following the policy of investing primarily in a diversified portfolio of common
stocks. The stocks will have relatively high current yields, and their prices
should be less volatile than those held in the Equity Growth Portfolio.
Investments in the Equity Income Portfolio may also include securities
convertible into common stock, preferred stock, debt securities and short-term
obligations. The Equity Income Portfolio seeks to achieve this objective by
following the policy of investing primarily in common stocks listed on the New
York Stock Exchange and on other national securities exchanges and, to a lesser
extent, in stocks that are traded over-the-counter. These stocks will be
11
<PAGE> 14
selected principally because of their dividend yield. During periods when stock
prices decline generally, the prices of stocks held in the Equity Income
Portfolio may also decline.
A portion of the Equity Income Portfolio may be invested in short-term debt
obligations of the kind held in the Money Market Portfolio, as described in
Appendix A, in order to make effective use of cash reserves pending investment
in common stocks and other securities.
The annual portfolio turnover rate for the Equity Income Portfolio is not
likely to exceed 100 percent.
EQUITY GROWTH PORTFOLIO
The primary objective of the Equity Growth Portfolio is a high level of
capital appreciation with current income as the secondary objective.
The Equity Growth Portfolio will seek to achieve this objective by
following the policy of investing primarily in a diversified portfolio of common
stocks. The stocks will be selected based on their potential for above average
growth in earnings and dividends. Investments in the Equity Growth Portfolio may
also include securities convertible into common stock, preferred stock, debt
securities and short-term obligations. The Equity Growth Portfolio seeks to
achieve this objective by following the policy of investing primarily in common
stocks listed on the New York Stock Exchange and on other national securities
exchanges and, to a lesser extent, in stocks that are traded over-the-counter.
These stocks will be selected principally for their potential appreciation over
the longer term. The effort to achieve a higher return necessarily involves
accepting somewhat greater risk. During periods when stock prices decline
generally, it can be expected that the value of the Equity Growth Portfolio will
also decline.
A portion of the Equity Growth Portfolio may be invested in high-quality,
short-term debt obligations of the kind held in the Money Market Portfolio, as
described in Appendix A, in order to make effective use of cash reserves pending
investment in common stocks and other securities.
The annual portfolio turnover rate for the Equity Growth Portfolio is not
likely to exceed 100 percent.
INTERMEDIATE TERM BOND PORTFOLIO
The objective of the Intermediate Term Bond Portfolio is to maximize income
over the intermediate term consistent with preservation of capital.
The Intermediate Term Bond Portfolio seeks to achieve this objective by
following the policy of investing in (i) debt securities which, at the time of
purchase, have a rating within the four highest grades as determined by either
Moody's Investors Service, Inc. or Standard & Poor's Corporation as described in
Appendix B; (ii) obligations of the U.S. Government, its agencies or
instrumentalities; and (iii) high-quality, short-term obligations as described
in Appendix A. The Intermediate Term Bond Portfolio will be managed so as to
maintain a dollar-weighted average life of between 4 and 8 years.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Intermediate Term Bond
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Intermediate Term Bond
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates, and there is a corresponding risk that the value of
the securities held in the Portfolio will decline. Because of their relatively
shorter maturities, the value of the bonds in this Portfolio will be less
sensitive to changes in interest rates than the longer-term bonds held in the
Long Term Bond Portfolio and similar to the bonds held in the Government
Securities Portfolio. Thus, compared to the Long Term Bond Portfolio, there will
be less of a risk that the value of the securities held in the Intermediate Term
Bond Portfolio will decline, but not as much of a likelihood for greater
appreciation in value. Compared to the Government Securities Portfolio, there
will be a similar risk that the value of the securities held in the Intermediate
Term Bond Portfolio will decline and a similar likelihood for appreciation in
value.
12
<PAGE> 15
The annual portfolio turnover rate of the Intermediate Term Bond Portfolio
is not likely to exceed 100 percent.
LONG TERM BOND PORTFOLIO
The objective of the Long Term Bond Portfolio is to maximize income over
the longer term consistent with preservation of capital.
The Long Term Bond Portfolio seeks to achieve this objective by following
the policy of investing in (i) debt securities which, at the time of purchase,
have a rating within the four highest grades as determined by either Moody's
Investors Service, Inc. or Standard & Poor's Corporation as described in
Appendix B; (ii) obligations of the U.S. Government, its agencies or
instrumentalities; and (iii) high-quality, short-term obligations as described
in Appendix A. The Long Term Bond Portfolio will be managed so as to maintain a
dollar-weighted average life of in excess of 8 years.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Long Term Bond Portfolio
will vary to reflect the Investment Adviser's assessment of prospective changes
in interest rates, so that the Long Term Bond Portfolio may benefit from
relative price appreciation when interest rates decline and may protect capital
value when interest rates rise. The success of this strategy will depend on the
Investment Adviser's ability to forecast changes in interest rates, and there is
a corresponding risk that the value of the securities held in the Long Term Bond
Portfolio will decline. Because of their relatively longer maturities, the value
of the bonds in this Portfolio will be more sensitive to changes in interest
rates than the relatively shorter-term bonds held in the Intermediate Term Bond
Portfolio and the Government Securities Portfolio. Thus, compared to the
Intermediate Term Bond Portfolio and the Government Securities Portfolio, there
will be more of a risk that the value of securities held in the Long Term Bond
Portfolio will decline, but more of a likelihood for greater appreciation in
value.
The annual portfolio turnover rate of the Long Term Bond Portfolio is not
likely to exceed 100 percent.
GOVERNMENT SECURITIES PORTFOLIO
The primary objective of the Government Securities Portfolio is to maximize
income over the intermediate term consistent with preservation of capital.
The Government Securities Portfolio will seek to achieve this objective by
following a policy of investing in highly-rated debt securities of the United
States government and its agencies; and money market instruments. The Government
Securities Portfolio will be managed so as to maintain a dollar-weighted average
life of up to ten years at time of purchase.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Government Securities
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Government Securities
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates, and there is a corresponding risk that the value of
the securities held in the Government Securities Portfolio will decline. Because
of their relatively shorter maturities, the value of the bonds in this Portfolio
will be less sensitive to changes in interest rates than the relatively
longer-term bonds held in the Long Term Bond Portfolio. Because of the
relatively similar maturities, the value of the bonds in this Portfolio will be
similar to changes in interest rates in the Intermediate Term Bond Portfolio.
Thus, compared to the Long Term Bond Portfolio, there will be less of a risk
that the value of securities held in the Government Securities Portfolio will
decline, but not as much of a likelihood for greater appreciation in value.
Compared to the Intermediate Term Bond Portfolio, there will be a similar risk
that the value of securities held in the Government Securities Portfolio will
decline and a similar likelihood for appreciation in value.
The annual portfolio turnover rate of the Government Securities Portfolio
is not likely to exceed 100 percent. For 1991, the portfolio turnover rate
exceeded 100 percent. The Government Securities Portfolio commenced operation on
May 1, 1991. On June 24, 1994, the Keynote Series Account requested redemption
13
<PAGE> 16
of all shares of this Portfolio. Effective on and after November 18, 1994,
shares of the Portfolio will be offered to MONY America and MONY for allocation
to MONY America Variable Account A and MONY Variable Account A to fund Flexible
Payment Variable Annuity Contracts issued by those companies and to MONY America
and MONY for allocation to MONY America Variable Account L and to MONY Variable
Account L to fund Flexible Premium Variable Life Insurance Policies issued by
those companies. As this Portfolio is, in effect, a start-up fund, a larger than
normal number of transactions can be expected as the fund matures, and,
therefore, the additional transaction expenses associated with high portfolio
turnover rates may adversely impact purchasers of this Portfolio's shares.
MONEY MARKET PORTFOLIO
The objective of the Money Market Portfolio is to maximize current income
consistent with the preservation of capital and maintenance of liquidity.
The Money Market Portfolio seeks to achieve this objective by following the
policy of investing primarily in money market instruments denominated in U.S.
dollars that mature in one year or less from the date the Money Market Portfolio
acquires them. Money market instruments include short-term obligations of the
U.S. Government, its agencies or instrumentalities, of domestic corporations and
of banks. They also include commercial paper and other corporate obligations.
The Money Market Portfolio may also enter into repurchase and reverse repurchase
agreements. A detailed description of the money market instruments in which the
Money Market Portfolio may invest, of the repurchase and reverse repurchase
agreements it may enter into, and of the risks associated with those instruments
and agreements may be found in Appendix A. The dollar-weighted average life to
maturity of the securities held by the Money Market Portfolio is expected to be
less than 90 days.
Because of the high-quality, short-term nature of the Money Market
Portfolio's holdings, increases in the value of an investment in the Portfolio
will be derived almost entirely from interest on the securities held by it.
The Money Market Portfolio will attempt, consistent with preservation of
capital, to achieve the highest possible yield from its investments. Yield with
respect to the Money Market Portfolio normally will fluctuate, sometimes
substantially, on a daily basis and is affected by changes in interest rates on
money market instruments, average portfolio maturities, the type and quality of
portfolio securities held, and the expenses of the Money Market Portfolio.
Therefore, the yield for any given past period should not be considered as
representative of the yield for any future period.
Because of the short term nature of the securities in which the Money
Market Portfolio will invest, and because the Portfolio's investments will be
constantly changing in response to market conditions, an annual portfolio
turnover rate for the Money Market Portfolio would not be meaningful and will
not be determined. The Rules of the Securities and Exchange Commission reflect
that such calculations would not be meaningful and, therefore, do not require
calculation of turnover rates for securities with a maturity of one year or
less.
DIVERSIFIED PORTFOLIO
The objective of the Diversified Portfolio is a high total investment
return consistent with a diversified portfolio having a managed mix of common
stocks, bonds and money market instruments. The Investment Adviser will
determine the proportions of each type of investment to achieve an asset mix it
believes appropriate for an investor who desires diversification of investment.
The Investment Adviser will vary the proportion of each type of asset in the
Diversified Portfolio according to changes in economic conditions and the
sensitivity of each type of investment to those changes.
The Diversified Portfolio will seek to achieve this objective by investing
in stocks and other equity securities of the kind purchased by the Equity Income
Portfolio and Equity Growth Portfolio, bonds and other fixed-income securities
of the kind purchased by the Intermediate Term Bond Portfolio, the Long Term
Bond Portfolio and the Government Securities Portfolio, and money market
instruments of the kind purchased by the Money Market Portfolio. These
investments will be made in proportions that the Investment Adviser feels
appropriate. These asset allocation decisions will be reviewed by the Investment
Adviser as necessary, given
14
<PAGE> 17
market conditions. The decision about how much to allocate to each particular
type of asset will be based on the Investment Adviser's outlook for the economy,
the financial markets and its judgment about the relative attractiveness of each
asset type.
The overall annual portfolio turnover rate for the Diversified Portfolio is
not likely to exceed 100 percent. Neither the equity portion nor the bond
portion of the Diversified Portfolio is likely to have an annual turnover rate
exceeding 100 percent. No annual portfolio turnover rate may be accurately
predicted for the portion of the Portfolio invested in money market instruments
because of the short-term nature of these securities and because the Diversified
Portfolio's proportion of investment in money market instruments will be
constantly changing in response to market conditions.
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS
The Fund has adopted restrictions relating to the investment of assets of
the Portfolios and their activities. The investment restrictions are fundamental
policies and may not be changed without the approval of a majority vote of the
outstanding shares (as defined above at page 11) of each of the Portfolios
affected. (See VOTING RIGHTS at page 22.) These investment restrictions, which
apply to the Fund's seven current Portfolios, may be different for any new
portfolios that the Fund may create in the future.
Some of the Fund's investment restrictions have the effect of limiting
certain practices, while, however, allowing a portion of a Portfolio's net
assets to be at risk. These investment restrictions are:
1. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
2. Loans, both short and long term, may be made by a Portfolio only
through the purchase or acquisition of privately placed bonds, debentures,
notes or other evidences of indebtedness that may or may not be convertible
into stock of a type customarily acquired by institutional investors,
provided, however, that no such purchase or acquisition will be made if, as
a result thereof, more than 10 percent of the value of the Portfolio's
assets would be so invested. Repurchase agreements are not subject to this
restriction.
3. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
4. In general, the Portfolios will not invest more than 10 percent of
any Portfolio's total assets in illiquid assets, including illiquid
restricted securities, repurchase agreements maturing in more than seven
days, and nonnegotiable time deposits maturing in more than seven days.
More detailed information about these investment restrictions, as well as
other investment restrictions applicable to the Portfolios, is contained in the
Statement of Additional Information (INVESTMENT RESTRICTIONS). In addition, the
Fund intends to comply with the various requirements of the Internal Revenue
Code to qualify as a "regulated investment company" under the Code. For a
description of these requirements see FEDERAL INCOME TAX STATUS on page 17.
LOANS OF PORTFOLIO SECURITIES
Each Portfolio may from time to time lend the securities it holds to
broker-dealers, provided that the aggregate value of the securities so lent by
any Portfolio does not exceed 10 percent of the value of that
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<PAGE> 18
Portfolio's assets and further provided that such loans are made pursuant to
written agreements and are continuously secured by collateral in the form of
cash, U.S. Government securities, or irrevocable standby letters of credit in an
amount equal to at least the market value at all times of the loaned securities
plus the accrued interest and dividends. During the time securities are on loan,
the Portfolio will continue to receive the interest and dividends, or amount
equivalent thereto, on the loaned securities while receiving a fee from the
borrower or earning interest on the investment of the cash collateral. The right
to terminate the loan will be given to either party subject to appropriate
notice. Upon termination of the loan, the borrower will return to the lender
securities identical to the loaned securities. The Portfolio will not have the
right to vote securities on loan, but would terminate the loan and retain the
right to vote if that were considered important with respect to the investment.
The primary risk in lending securities is that the borrower may become
insolvent on a day on which the loaned security is rapidly advancing in price.
In such event, if the borrower fails to return the loaned securities, the
existing collateral might be insufficient to purchase back the full amount of
the security loaned, and the borrower would be unable to furnish additional
collateral. The borrower would be liable for any shortage; but the Portfolio
would be an unsecured creditor with respect to such shortage and might not be
able to recover all or any of it. However, this risk may be minimized by a
careful selection of borrowers and securities to be lent and by monitoring
collateral.
No Portfolio will lend securities to broker-dealers affiliated with the
Fund or MONY. This will not affect the Fund's ability to maximize a Portfolio's
securities lending opportunities.
STATE LAW RESTRICTIONS
The investments of Keynote and the MONY Variable Accounts, and the MONY
America Variable Accounts are subject to the provisions of the New York and
Arizona insurance law, respectively, applicable to the investments of life
insurance company separate accounts. Although these state law investment
restrictions do not apply directly to the Fund, the Portfolios will comply,
without the approval of shareholders, with such statutory requirements, as they
exist or may be amended.
Under pertinent provisions of New York law, as they currently exist, the
assets of Keynote and the MONY Variable Accounts may be invested in any
investments (1) permitted by agreement between these Variable Accounts and their
Contract holders and (2) acquired in good faith and with that degree of care in
acquiring investments that an ordinarily prudent person in a like position would
use under similar circumstances. The only agreement with Contract holders
pertaining to investments permitted for the Variable Accounts is as described in
the prospectuses for the Contracts, namely that the Variable Accounts will
invest only in shares of the Fund. The investment of the assets of the Fund are
subject to the investment objectives, policies and restrictions applicable to
the Portfolios, as described in this Prospectus (see INVESTMENT OBJECTIVES AND
POLICIES OF THE PORTFOLIOS at page 11 and INVESTMENT RESTRICTIONS APPLICABLE TO
THE PORTFOLIOS at page 15) and in the Statement of Additional Information
(INVESTMENT RESTRICTIONS).
The pertinent provisions of Arizona law, as they currently exist, are in
summary form as follows:
The assets of variable accounts established by MONY America may be invested
in any investments that are of the kind permitted and that satisfy the
qualitative requirements, but without regard to quantitative restrictions.
Bonds, debentures, notes, commercial paper and other evidences of indebtedness,
and preferred, guaranteed or preference stocks must have received an investment
grade rating approved by the Director of Insurance. Funds may not be invested in
foreign banks (other than foreign branches of domestic banks) except that
investments may be made in obligations issued, assumed or guaranteed by the
International Bank for Reconstruction and Development. Investments not otherwise
permitted under Arizona law may be made in an amount not exceeding in the
aggregate 10 percent of assets and not exceeding 2 percent of assets as to any
one such investment.
Although compliance with New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states, under
some circumstances the laws of other states could
16
<PAGE> 19
impose additional restrictions. Accordingly, if any state or other jurisdiction
in which the Variable Accounts propose to do business imposes limits applicable
to the Variable Accounts, in addition to any imposed by New York and Arizona
law, the Fund will comply with such further investment limits.
FEDERAL INCOME TAX STATUS
The Fund and each of its Portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). To qualify for treatment as regulated
investment companies, the Fund and each of its Portfolios must, among other
things, satisfy the following requirements:
1. At least 90 percent of the gross income of each of the Portfolios
must be derived from dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5) of the Code), and gains
from the sale or other disposition of stock or securities (as defined in
section 2(a)(36) of the Investment Company Act of 1940, as amended) or
foreign currencies, or other income (including but not limited to gains
from options, futures, or forward contracts) derived with respect to its
business of investing in such stock, securities or currencies. For purposes
of meeting this requirement, foreign currency gains which are not ancillary
to the Portfolio's principal business of investing in stock or securities
(or options and futures with respect to stock or securities) may be
excluded from qualifying income.
2. Each Portfolio must derive less than 30 percent of its gross income
in each taxable year from the sale or other disposition of stock,
securities held for less than 3 months, options, futures, forward
contracts, or foreign currency gains not related to a Portfolio's principal
business of investing in stock or securities. No portfolio will be
disqualified under this test by reason of sales resulting from abnormal
redemptions on any day occurring before the close of the fifth business day
after such day if the sum of the percentages of assets redeemed, for any
day on which such percentage exceeds 1% for the day in question and any
prior day in the taxable year exceeds 30% and the Fund would meet this test
if all its portfolios were treated as a single company.
3. At the close of each calendar quarter, at least 50 percent of the
value of the total assets of each of the Portfolios must be represented by
cash and cash items (including receivables), Government securities,
securities of other regulated investment companies, and other securities
(limited for each portfolio in respect of any one issuer, to an amount not
greater in value than 5 percent of the value of the total assets of that
Portfolio and to not more than 10 percent of the outstanding voting
securities of the issuer).
4. At the close of each calendar quarter, no more than 25 percent of
the value of the total assets of each of the Portfolios may be invested in
the securities of any one issuer except that this limitation shall not
apply to Government securities or securities of other regulated investment
companies. In addition, at the close of each calendar quarter, no more than
25 percent of the value of the total assets of each of the Portfolios may
be invested in the securities of 2 or more issuers which the Portfolio
controls and which are engaged in the same or similar trades or businesses.
For substantially all federal income tax purposes, each Portfolio of the
Fund is a separate entity. This means that the investment results of each
Portfolio will be calculated separately from those of the other Portfolios for
purposes of determining whether each Portfolio qualifies as a regulated
investment company and for purposes of determining the net ordinary income (or
loss) and net realized capital gains (or losses).
For information regarding the federal income tax implications of the Fund
and its Portfolios qualifying as a regulated investment company, see DIVIDENDS,
DISTRIBUTIONS AND TAXES at pages 23.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
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<PAGE> 20
MANAGEMENT OF THE FUND
The Board of Directors of the Fund is responsible for the management of the
business of the Fund under the laws of the State of Maryland, and it is
primarily responsible for reviewing the activities of the investment adviser.
INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES
The Fund has entered into an Investment Advisory Agreement with MONY
America under which MONY America will carry on the overall day-to-day management
of the Equity Income, Equity Growth, Intermediate Term Bond, Long Term Bond,
Government Securities, Money Market, and Diversified Portfolios of the Fund, and
provide investment advice and related services for each of those Portfolios. If
the Fund creates new portfolios in the future, MONY America may be appointed to
act as investment adviser and manager for those portfolios, as well, or the Fund
may appoint a different investment adviser for any new portfolio.
MONY America receives an investment management fee as compensation for its
services to the Equity Income, Equity Growth, Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, and Diversified Portfolios of the
Fund. The fee is a daily charge equal to an annual rate of .40 percent of the
first $400 million of the aggregate average daily net assets of those
Portfolios, .35 percent of the next $400 million of the aggregate average daily
net assets of those Portfolios, and .30 percent of the aggregate average daily
net assets of those Portfolios in excess of $800 million. Each daily charge for
the fee is divided among those Portfolios in proportion to their net assets on
that date. MONY America has agreed to bear all expenses (i) for the Fund's
organization, (ii) related to initial registration and qualification under
federal and state securities laws, (iii) associated with calculating net asset
value of the Portfolios, and (iv) for compensation of the Fund's directors,
officers and employees who are interested persons (as defined by the 1940 Act)
of MONY America. All other expenses will be borne by the Fund, including any
extraordinary or non-recurring expenses. With respect to the expenses of
preparing, printing and mailing prospectuses, see PURCHASE AND REDEMPTION OF
SHARES at page 20. MONY America has agreed to reimburse the Fund for the amount,
if any, by which the aggregate ordinary operating expenses of any Portfolio in
any calendar year exceed the most restrictive expense limitations then in effect
under any state securities law or regulations. Under the most restrictive state
regulations currently in effect, the Adviser would be required to reimburse the
Fund for investment management fees received by the Adviser from the Fund, to
the extent that any Portfolio's aggregate ordinary operating expense (excluding
interest, taxes, brokerage fees and commissions, and extraordinary charges such
as litigation costs) exceed in any fiscal year 2.5 percent of the first
$30,000,000 of average daily net assets of such Portfolio, 2.0 percent of the
next $70,000,000 of average daily net assets of such Portfolio, and 1.5 percent
of the average daily net assets of such Portfolio in excess of $100,000,000. No
fee payments would be made to MONY America with respect to any Portfolio during
any calendar year to the extent that those payments would cause that Portfolio's
expenses to exceed the expense limitations applicable to the Portfolio.
MONY America, a wholly-owned subsidiary of MONY, is registered as an
investment adviser under the Investment Advisers Act of 1940 and, prior to
registration in 1985, had not performed services as an investment adviser. MONY
America has entered into a Services Agreement with MONY to provide it with
personnel, services, facilities, supplies, and equipment in order to carry out
many of its duties to provide investment management services under the
Investment Advisory Agreement. MONY America pays MONY for such services.
Because the Investment Advisory Agreement and the Services Agreement are
interrelated and dependent on each other, MONY may be deemed to be an investment
adviser of the Fund for certain federal regulatory purposes. MONY is registered
as an investment adviser under the Investment Advisers Act of 1940. Its
principal business address, as well as that of the Investment Adviser, is 1740
Broadway, New York, New York 10019.
Although MONY America's lack of previous experience in advising a mutual
fund might be considered a risk factor, it is anticipated that many of MONY
America's duties will be carried out by MONY and its
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<PAGE> 21
personnel under the Services Agreement and therefore MONY's experience as an
investment manager should also be considered. MONY is a mutual life insurance
company organized under the laws of New York in 1842 and licensed to do business
in all fifty states, the District of Columbia, Puerto Rico, the Virgin Islands
and certain Canadian provinces. MONY manages the investment of assets held in
its own general account, various separate accounts established by MONY, and the
assets of its employee thrift plan trust. From 1969 to 1981, MONY provided
investment advisory services to MONY Advisers, Inc. (a wholly-owned subsidiary
of MONY) which acted as investment adviser to The MONY Fund, Inc., a registered
diversified open-end management investment company. As of December 31, 1995,
total assets under management in the accounts managed by MONY were approximately
$18.9 billion and included common stocks with a value of approximately $773
million, long and medium term publicly-traded fixed income securities with a
value of approximately $6.5 billion, and short-term debt obligations with a
value of approximately $593 million. The size of the accounts and portfolios
managed by MONY or its personnel does not assure that a shareholder of the Fund
will realize any gain or be protected from any loss.
The Investment Advisory Agreement was initially approved by the Fund's
Board of Directors, including a majority of the non-interested directors (as
defined by the 1940 Act), on January 2, 1985 and continuance for an additional
year was most recently approved on February 8, 1996. The Services Agreement was
similarly approved on January 2, 1985 and continuance for an additional year was
most recently approved by the Fund's Board of Directors on February 8, 1996.
Both Agreements will continue in effect if approved annually by (1) a majority
of the non-interested directors (as defined by the 1940 Act) of the Fund's Board
of Directors, and (2) a majority of the entire Board of Directors or a majority
vote of the voting shares of each Portfolio. If a majority of the voting shares
of any Portfolio vote to approve both Agreements, they will remain in effect
with respect to that Portfolio, even if they are not approved by a majority of
the voting shares of any other Portfolio or by a majority of the voting shares
of the entire Fund. The Agreements are not assignable. The Investment Advisory
Agreement may be terminated without penalty upon 60 days' notice by the Fund's
Board of Directors or by a majority vote of its shareholders, and upon 90 days'
notice by the Investment Adviser. The Services Agreement may be terminated
without penalty upon 60 days' notice by either party.
MONY America and MONY serve as investment managers or advisers in managing
their own assets and, in the case of MONY, the assets of separate accounts and
certain of its subsidiaries. In the future, MONY America and MONY may serve as
investment manager or adviser to other investment companies. When investment
opportunities arise that may be appropriate for more than one account or entity
for which MONY America or MONY serves as investment manager or adviser,
including for their own accounts, MONY America or MONY and their personnel will
not favor one over another and may allocate investments among them in an
impartial manner believed to be equitable to each entity involved. The
allocations will be based on each entity's investment objectives and its current
cash and investment positions. Because the various entities for which MONY
America or MONY acts or may act as investment manager or adviser, including for
their own accounts, have different investment objectives and positions, MONY
America or MONY may from time to time buy a particular security for one or more
such entities while at the same time it sells such securities for another.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
As investment adviser, MONY America is responsible for the day-to-day
management of each of the Portfolios of the Fund. Investment decisions are made
by a committee of the investment adviser.
CUSTODIAN, TRANSFER AGENT, AND DIVIDEND DISBURSING AGENT
Chemical Bank, 277 Park Avenue, New York, New York 10172 is the custodian
of the securities held by the Portfolios of the Fund, and is authorized to use
the facilities of the Depository Trust Company and the facilities of the
book-entry system for the Federal Reserve Bank. The Fund acts as its own
transfer agent and dividend-disbursing agent.
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<PAGE> 22
PURCHASE AND REDEMPTION OF SHARES
Shares in the Fund are currently being offered continuously, without sales
charge at the Fund level, at prices equal to the respective net asset values of
the Portfolios to MONY and MONY America for allocation to the Variable Accounts
to fund benefits payable under the Contracts described in the attached
prospectus. The Fund sells its shares through MONY Securities Corp. ("MSC")
(which acts as "principal underwriter" of the Contracts and therefore of the
shares of the Fund) to MONY and MONY America, for allocation to the Variable
Accounts. MSC is registered as a broker-dealer under the Securities Exchange Act
of 1934 and is a member of the National Association of Securities Dealers. It is
expected that there will be no distribution expenses for the Fund, other than
expenses for preparing, printing and mailing prospectuses. These expenses, and
any other distribution expenses, will be borne by MSC pursuant to an
underwriting agreement that will comply with pertinent provisions of the 1940
Act and rules of the Securities and Exchange Commission under that Act. The Fund
may at some later date also offer its shares to other separate accounts of MONY,
MONY America, or other MONY subsidiaries.
The Fund is required to redeem all full and fractional shares of the Fund
for cash within seven days of receipt of proper notice of redemption. The
redemption price is the net asset value per share next determined after the
initial receipt of proper notice of redemption.
The right to redeem shares or to receive payment with respect to any
redemption may be suspended only (i) for any period during which trading on the
New York Stock Exchange is restricted as determined by the Securities and
Exchange Commission or when the New York Stock Exchange is closed (other than
customary weekend and holiday closings), (ii) for any period during which an
emergency exists as defined by the Securities and Exchange Commission as a
result of which disposal of a Portfolio's securities or determination of the net
asset value of each Portfolio is not reasonably practicable, and (iii) for such
other periods as the Securities and Exchange Commission may by order permit for
the protection of shareholders of each Portfolio.
DETERMINATION OF NET ASSET VALUE
The net asset value of the shares of each Portfolio will be determined by
the Investment Adviser once daily immediately after the declaration of
dividends, if any, at a time to be determined by the Fund's Board of Directors,
currently 4:00 p.m. New York City time, on each day during which the New York
Stock Exchange is open for business or on any other day in which there is
sufficient trading in the securities held by a Portfolio to result in a material
change in the value of such shares. The net asset value per share of each
Portfolio except the Money Market Portfolio is computed by adding the sum of the
value of the securities held by that Portfolio plus any cash or other assets it
holds, subtracting all its liabilities, and dividing the result by the total
number of shares outstanding of that Portfolio at such time. Expenses, including
the investment management fee payable to MONY America, are accrued daily.
High-quality, short-term debt obligations held in any of the Portfolios
with a remaining maturity of 60 days or less will be valued on an amortized-cost
basis. This means that each obligation will be valued initially at its purchase
price and thereafter by amortizing any discount or premium uniformly to
maturity, regardless of the impact of fluctuating interest rates on the market
value of the obligation. This highly practical method of valuation is in
widespread use and almost always results in a value that is extremely close to
the actual market value. The Fund's Board of Directors will review obligations
being valued under this method where credit or other factors may indicate the
method is not appropriate or where the rules of the Securities and Exchange
Commission require such examination. Short-term debt obligations with a
remaining maturity of more than 60 days will be valued in the same way as are
debt securities held in the Intermediate Term Bond, Long Term Bond and
Government Securities Portfolios, as described below in "Valuation of
Intermediate Term Bond, Long Term Bond and Government Securities Portfolios".
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<PAGE> 23
VALUATION OF EQUITY INCOME AND EQUITY GROWTH PORTFOLIOS
The net asset value of the securities held in Equity Income and Equity
Growth Portfolios, other than short-term obligations valued on an amortized-cost
basis, will be determined in the following manner. Each security traded on a
national securities exchange will be valued at the price which, on the date of
valuation, is the last sales price (or the last bid price if there were no sales
of the security on that day) on the New York Stock Exchange, or if not traded on
the New York Stock Exchange, such last sales or bid price on the principal
exchange on which such security is traded at the time of close of the New York
Stock Exchange. For any securities not traded on a national securities exchange
but traded in the over-the-counter market, the value will be the last bid price
available at the time of close of the New York Stock Exchange, except that the
securities for which quotations are furnished through a nationwide automated
quotation system approved by the NASDAQ will be valued at the closing best bid
price so furnished on the date of valuation.
VALUATION OF INTERMEDIATE TERM BOND, LONG TERM BOND AND GOVERNMENT SECURITIES
PORTFOLIOS
In determining the net asset value of securities held in the Intermediate
Term Bond, Long Term Bond, and Government Securities Portfolios, securities will
be valued based on a decision as to the broadest and most representative market
for such security. The value will be based on either (i) the last available sale
price on a national securities exchange, (ii) in the absence of recorded sales,
the average of readily available closing bid and asked prices on national
securities exchanges, or (iii) the average of the quoted bid and asked prices in
the over-the-counter market. Securities or assets for which market quotations
are not readily available will be valued at fair value as determined by the
Investment Adviser under the direction of the Board of Directors of the Fund.
VALUATION OF MONEY MARKET PORTFOLIO
The net asset value of shares of the Money Market Portfolio will normally
remain at $1.00 per share, because the net investment income of this Portfolio
(including realized and unrealized gains and losses on Portfolio holdings) will
be declared as a dividend each time the Portfolio's net income is determined
(see DIVIDENDS, DISTRIBUTIONS AND TAXES, at page 23). If in the view of the
Board of Directors of the Fund it is inadvisable to continue to maintain the net
asset value of the Money Market Portfolio at $1.00 per share, the Board reserves
the right to alter the procedure. The Fund will notify Shareholders of any such
alteration.
The Fund will value all short-term debt obligations held in the Money
Market Portfolio on an amortized-cost basis. The regulations of the Securities
and Exchange Commission (SEC) require that, as a condition for using amortized
cost valuation, the Money Market Portfolio (i) maintain a dollar-weighted
average portfolio maturity not exceeding 90 days, and (ii) limit its portfolio
investments to those United States dollar-denominated instruments determined to
present minimal credit risks and which at the time of acquisition are Eligible
Securities. Eligible Securities include any security (i) issued with, or with a
remaining maturity of, 397 days or less which is rated (or, if unrated, the
issuer of which also issues short-term securities any one of which, comparable
in priority and security, is rated) by an SEC designated statistical rating
organization in one of the two highest rating categories for short-term debt
obligations; or (ii) the issuer of which does not have any securities which have
a short term rating but which security is (x) comparable in priority and
security to a security which has been rated in one of the two highest rating
categories for short term debt obligations by an SEC designated statistical
rating organization, and (y) not a security which had an original maturity in
excess of 397 days and which received a rating as a long term debt obligation
from such a rating organization that was not within the two highest rating
categories. In the event of sizable changes in interest rates, however, the
value determined by amortized cost valuation may be higher or lower than the
price that would be received if the obligation were sold. On these occasions (if
any should occur) as a further condition to using amortized-cost valuation,
procedures have been established by the Board of Directors to determine whether
the deviation might be enough to affect the value of shares in the Money Market
Portfolio by more than one-half of one percent, and if it does, an appropriate
adjustment will be made in the value of the obligations.
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<PAGE> 24
VALUATION OF DIVERSIFIED PORTFOLIO
In determining the net asset value of the Diversified Portfolio, the method
of valuation of a security will depend on the type of investment involved. A
security which is a common stock will be valued in the same way as securities
held in the Equity Income Portfolio or Equity Growth Portfolio; a security which
is an intermediate or long-term fixed income security in the same way as
securities held in the Intermediate Term Bond Portfolio, Long Term Bond
Portfolio, and Government Securities Portfolio, and short-term debt obligations
held in the Diversified Portfolio (other than those valued on an amortized-cost
basis) will be valued in the same way as debt securities held in the
Intermediate Term Bond Portfolio, Long Term Bond Portfolio or Government
Securities Portfolio.
SHARES IN THE FUND
The authorized capital stock of the Fund consists of 2 billion shares, par
value $.01 per share. The shares of capital stock are divided into seven
classes: Equity Income Portfolio Capital Stock (150 million shares); Equity
Growth Portfolio Capital Stock (150 million shares); Intermediate Term Bond
Portfolio Capital Stock (150 million shares); Long Term Bond Portfolio Capital
Stock (150 million shares); Government Securities Portfolio Capital Stock (150
million shares); Money Market Portfolio Capital Stock (250 million shares); and
Diversified Portfolio Capital Stock (150 million shares). The Fund may in the
future allocate some of the remaining authorized shares to these classes, or
create new classes of capital stock corresponding to new portfolios and allocate
some of the remaining authorized shares to such new classes and then issue
shares of such new classes. Each share of stock will have a pro-rata interest in
the assets of the Portfolio to which the stock of that class relates and will
have no interest in the assets of any other Portfolio. Holders of shares of any
Portfolio are entitled to redeem their shares as set forth under PURCHASE AND
REDEMPTION OF SHARES at page 20. The shares of each Portfolio, when issued, will
be fully paid and non-assessable, will have no preemptive, conversion, exchange
or similar rights, and will be freely transferable. The shares do not have
cumulative voting rights. Holders of more than 50 percent of the shares of the
Fund voting for the election of directors can, if they choose to do so, elect
all of the Fund's directors, and in such event the holders of the remaining
shares would not be able to elect any directors.
MONY provided the initial capital for each of the Fund's Portfolios. MONY
held shares attributable to its initial capital investment. At December 31,
1993, MONY had redeemed all shares attributable to its initial capital
investment, except that MONY provided $1,000,000 in capital to the Government
Securities Portfolio on November 18, 1994. Additional shares may be acquired by
MONY during the Fund's operation or any new portfolio's start-up period. The
acquisition of shares by MONY will enable the Portfolios (or any new portfolios)
to avoid an unrealistically poor investment performance that might otherwise
result because the amounts available for investment were too small, as well as
to satisfy the net worth requirements of the 1940 Act. MONY may also acquire
additional shares through dividend reinvestment in connection with the shares
acquired during the start-up period. Any shares acquired by MONY (other than for
allocation to MONY Variable Account A, MONY Variable Account L, MONY Variable
Account S, or the Keynote Series Account) will be acquired for investment and
can be disposed of only by redemption. They will not be redeemed by MONY until
the other assets of the Portfolios are large enough so that redemption will not
have an adverse effect upon investment performance. MONY will vote these shares
in the same proportion as the shares held in the Variable Accounts, which
generally are voted in accordance with the instructions of Contract holders.
VOTING RIGHTS
All shares of capital stock of the Fund have equal voting rights
(regardless of the net asset value per share) except that only shares of the
respective Portfolios are entitled to vote on matters concerning only that
Portfolio. Pursuant to the 1940 Act and the rules and regulations thereunder,
certain matters approved by a vote of all shareholders of the Fund may not be
binding on a Portfolio whose shareholders have not approved that matter. Each
outstanding share of each Portfolio is entitled to one vote and to participate
equally in dividends and distributions declared by that Portfolio and, upon
dissolution or liquidation, in the Portfolio's net assets after satisfying
outstanding liabilities.
22
<PAGE> 25
The voting rights of Contract holders, and limitations on those rights, are
explained in the accompanying prospectus for the Contract. MONY and MONY America
as the owners of the assets in the Variable Accounts, are entitled to vote all
of the shares of the Fund attributable to the Variable Accounts, but they will
generally do so in accordance with the instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The Fund might under these
circumstances be deemed to be controlled by MONY and MONY America by virtue of
the definitions contained in the 1940 Act although the Fund disclaims that such
control exists.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund and each of its portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). For a description of the restrictions
that apply to qualifying as a regulated investment company, see FEDERAL INCOME
TAX STATUS at page 17. Under those provisions, the Fund and each of its
portfolios will not be subject to federal income tax on the portion of its net
ordinary income and net realized capital gains that each portfolio distributes
to MONY and MONY America, for allocation to the Variable Accounts or to MONY
with respect to shares acquired with initial or additional capital. Since the
only shareholders of the Fund will be MONY and MONY America there is no
discussion in this Prospectus of the federal income tax consequences at the
shareholder level. For information concerning the federal tax consequences to
the Contract holders, see the attached prospectus for the Contracts.
The Fund intends to distribute as dividends substantially all the net
ordinary income, if any, of each Portfolio. For dividend purposes, net ordinary
income of each Portfolio, other than the Money Market Portfolio and the
short-term debt portion of any other Portfolio, consists of (i) all dividends
received (other than stock dividends), (ii) plus all interest and other ordinary
income accrued, (iii) plus all short-term capital gains realized, (iv) less the
expenses of such Portfolio (including fees payable to the Investment Adviser).
Net ordinary income of the Money Market Portfolio and the short-term debt
portion of any other Portfolio consists of (i) interest accrued and/or discount
earned (including both original issue and market discount), (ii) plus all
realized net short-term capital gains, (iii) less the expenses of the Portfolio
(including the fees payable to the Investment Adviser). Dividends on the Money
Market Portfolio will be declared and reinvested daily in additional full and
fractional shares of the Portfolio. Shares corresponding to the Money Market
Portfolio will begin accruing dividends on the day following the date on which
they are issued. Dividends from investment income of the other Portfolios will
be declared and reinvested in additional full and fractional shares annually,
although the Fund may make distributions more frequently, except that MONY may
elect to receive dividends on the shares acquired to provide operating capital
in cash.
The Fund will also declare and distribute annually before the close of its
fiscal year all net realized capital gains of each portfolio of the Fund (other
than short-term gains of the Money Market Portfolio, which are declared as
dividends daily). In determining the amount of capital gains to be distributed,
the realized capital gains and losses of each of the Portfolios are calculated
separately. This will not cause any of the Portfolios to have a different
investment performance than it would if it were taxed, together with the other
Portfolios, as a single investment company and it will not affect the value of
Contract holders' interests under the Contracts.
The Fund and each of its Portfolios intend to declare dividends in December
of each calendar year to shareholders of record as of a specified date in such
month and distribute such dividends in January of the following calendar year.
In determining the capital gains distribution, the Fund and each of its
Portfolios will calculate net realized capital gains on the basis of the fiscal
year ending October 31 of the current calendar year.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
23
<PAGE> 26
SHAREHOLDER REPORTS AND INQUIRIES
The Fund will send each shareholder, at least annually, reports showing as
of a specified date the number of shares in each Portfolio credited to the
shareholder. The Fund will also send Contract holders semiannual reports showing
the financial condition of the Portfolios and the investments held in each. The
annual report may take the form of an updated copy of the Prospectus.
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. Set forth below for
each Portfolio is the manner in which the data contained in such advertisements
will be calculated.
Money Market Portfolio. The performance data for this Portfolio will
reflect the "yield" and "effective yield". The "yield" of the Portfolio refers
to the income generated by an investment in the Portfolio over the seven day
period stated in the advertisement. This income is "annualized", that is, the
amount of income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the Portfolio is assumed to be reinvested.
The "effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
All Other Portfolios. The performance data for the Portfolios will reflect
the "yield" and "total return". The "yield" of each of the Portfolios (except
for a 7 day period for the Money Market Portfolio) refers to the income
generated by an investment in that Portfolio over the 30 day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value on the last day of the period.
"Total return" for each of these Portfolios refers to the return a Shareholder
would receive during the period indicated if a $1,000 investment was made the
indicated number of years ago. It reflects investment results less charges and
deductions of the Fund. Returns for periods exceeding one year reflect the
average annual total return for such period. Total return data may also be shown
for larger investments which would reflect the average size purchase payment
made for Contracts, the purchasers of which may allocate purchase payments to
Subaccounts which purchase shares of the Portfolios of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index and the
Shearson Lehman Brothers, Government/Corporate Index, and to various ranking
services, including, without limitation, the Lipper Annuity and Closed End
Survey compiled by Lipper Analytical Services and the VARDS report compiled by
Variable Annuity Research and Data Service in order to provide the reader a
basis for comparison.
ADDITIONAL INFORMATION
This Prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
For further information, including the Statement of Additional Information,
shareholders may also contact the Fund's office at the address or at the phone
number set forth on the cover of this Prospectus.
24
<PAGE> 27
APPENDIX A
SECURITIES IN WHICH THE MONEY MARKET
PORTFOLIO MAY CURRENTLY INVEST
The Money Market Portfolio, and the other Portfolios to the extent their
investment policies so provide, may invest in the following short-term, debt
securities regularly bought and sold by financial institutions:
1. U.S. Treasury Bills, other obligations issued or guaranteed by the
U.S. Government, obligations of U.S. agencies or instrumentalities which
are backed by the U.S. Treasury, and obligations issued or guaranteed by
U.S. agencies or instrumentalities and backed solely by the issuing agency
or instrumentality. These are debt securities (including bills,
certificates of indebtedness, notes, and bonds) issued or guaranteed by the
U.S. Treasury or by an agency or instrumentality of the U.S. Government
that is established under the authority of an act of Congress. Such
agencies or instrumentalities include, but are not limited to, the Federal
National Mortgage Association, the Federal Farm Credit Bank, the Federal
Home Loan Bank and the Government National Mortgage Association. Although
all obligations of agencies and instrumentalities are not direct
obligations of the U.S. Treasury, payment of the interest and principal on
them is generally backed directly or indirectly by the U.S. Treasury. This
support can range from the backing of the full faith and credit of the
United States, to U.S. Treasury guarantees, or to the backing solely of the
issuing agency or instrumentality itself.
2. Obligations (including certificates of deposit, bankers'
acceptances and time deposits) of any bank organized under the laws of the
United States or any state thereof or of foreign branches of such banks or
foreign banks, provided that such bank has, at the time of the Portfolio's
investment, total assets of at least $1 billion or the equivalent. The term
"certificates of deposit" includes both Eurodollar certificates of deposit,
which are traded in the over-the-counter market, and Eurodollar time
deposits, for which there is generally not a market. "Eurodollars" are
dollars deposited in banks outside the United States. An investment in
Eurodollar instruments involves risks that are different in some respects
from an investment in debt obligations of domestic issuers, including
future political and economic developments such as possible expropriation
or confiscatory taxation that might adversely affect the payment of
principal and interest on the Eurodollar instruments. In addition, foreign
branches of domestic banks and foreign banks may not be subject to the same
accounting, auditing and financial standards and requirements as domestic
banks. Finally, in the event of default, judgments against a foreign branch
or foreign bank might be difficult to obtain or enforce.
"Certificates of deposit" are certificates evidencing the indebtedness
of a commercial bank to repay funds deposited with it for a definite period
of time (usually from 14 days to one year). "Bankers' acceptances" are
credit instruments evidencing the obligation of a bank to pay a draft which
has been drawn on it by a customer. These instruments reflect the
obligation both of the bank and of the drawer to pay the face amount of the
instrument upon maturity. "Time deposits" are non-negotiable deposits in a
bank for a fixed period of time.
3. Commercial paper issued by domestic corporations which at the date
of investment is rated (a) "high quality" by Moody's Investors Service,
Inc. ("Moody's") or Standard & Poor's Corporation ("S&P"), provided that in
no event will the Portfolio invest in commercial paper rated lower than
Prime 2 by Moody's or A-2 by S&P or, (b) if not rated, issued by domestic
corporations which have an outstanding senior long-term debt issue rated Aa
or better by Moody's or AA or better by S&P. See Appendix B for an
explanation of the ratings issued by Moody's and S&P. "Commercial paper"
consists of short-term (usually from 1 to 270 days) unsecured promissory
notes issued by corporations in order to finance their current operations.
4. Other corporate obligations issued by domestic corporations which
at the date of investment are rated Aa or better by Moody's or AA or better
by S&P. See Appendix B for rating information. "Corporate obligations" are
bonds and notes issued by corporations and other business organizations,
including business trusts, in order to finance their long-term credit
needs.
5. Repurchase Agreements. When the Money Market Portfolio purchases
money market securities of the types described above, it may on occasion
enter into a repurchase agreement with the seller wherein the seller and
the buyer agree at the time of sale to a repurchase of the security at a
mutually agreed upon
A-1
<PAGE> 28
time and price. The period of maturity is usually quite short, possibly
overnight or a few days, although it may extend over a number of months.
The resale price is in excess of the purchase price, reflecting an
agreed-upon market rate of interest effective for the period of time the
Portfolio's money is invested in the security, and is not related to the
coupon rate of the purchased security. Repurchase agreements may be
considered loans of money to the seller of the underlying security, which
are collateralized by the securities underlying the repurchase agreement.
The Fund will not enter into repurchase agreements unless the agreement is
"fully collateralized," i.e., the value of the securities is, and during
the entire term of the agreement remains, at least equal to the amount of
the "loan" including accrued interest. The Fund's custodian bank will take
possession of the securities underlying the agreement, and the Fund will
value them daily to assure that this condition is met. The Fund has adopted
standards for the parties with whom it will enter into repurchase
agreements which it believes are reasonably designed to assure that such a
party presents no serious risk of becoming involved in bankruptcy
proceedings within the time frame contemplated by the repurchase agreement.
In the event that a seller defaults on a repurchase agreement, the Fund may
incur a loss in the market value of the collateral, as well as disposition
costs; and, if a party with whom the Fund had entered into a repurchase
agreement becomes involved in bankruptcy proceedings, the Fund's ability to
realize on the collateral may be limited or delayed and a loss may be
incurred if the collateral security of the repurchase agreement declines in
value during the bankruptcy proceedings.
6. Reverse Repurchase Agreements. The Portfolio may enter into reverse
repurchase agreements with banks, which agreements have the characteristics
of borrowing and involve the sale of securities held by the Portfolio with
an agreement to repurchase the securities at an agreed-upon price and date,
which reflect a rate of interest paid for the use of funds for the period.
Generally, the effect of such a transaction is that the Portfolio can
recover all or most of the cash invested in the securities involved during
the term of the reverse repurchase agreement, while in many cases it will
be able to keep some of the interest income associated with those
securities. Such transactions are only advantageous if the Portfolio has an
opportunity to earn a greater rate of interest on the cash derived from the
transaction than the interest cost of obtaining that cash. The Portfolio
may be unable to realize a return from the use of the proceeds equal to or
greater than the interest required to be paid. Opportunities to achieve
this advantage may not always be available, and the Portfolio intends only
to use the reverse repurchase technique when it appears to be to its
advantage to do so. The use of reverse repurchase agreements may magnify
any increase or decrease in the value of the Portfolio's securities. The
Fund's custodian bank will maintain in a separate account securities of the
Portfolio that have a value equal to or greater than the Portfolio's
commitments under reverse repurchase agreements.
Notwithstanding the above, it is the present intention of the Fund that the
Money Market Portfolio continue to qualify under the requirements of Rule 2a-7
of the Securities and Exchange Commission ("SEC") which permits the Portfolio to
use the amortized cost method of valuation to calculate net asset value if the
Portfolio's funds are invested in accordance with its guidelines. Briefly, those
guidelines require investment in Eligible Securities (see VALUATION OF MONEY
MARKET PORTFOLIO at page 21 for a discussion of Eligible Securities) which
qualify as First or Second Tier securities under the Rule. First Tier securities
include any Eligible Security which (i) is rated (or, if unrated, the issuer of
which also issues short-term securities any one of which, comparable in priority
and security, is rated) by an SEC designated statistical rating organization in
its highest category for short-term debt obligations, or (ii) is a security
having a remaining maturity of 397 days or less when acquired but which has an
original maturity in excess of 397 days and which is now comparable in priority
and security to a short-term security of the same issuer which is rated by an
SEC designated statistical rating organization in the highest category for
short-term debt obligations; or (iii) is unrated as a short-term security (and,
if rated as a long-term security, received a rating in one of the two highest
categories) and is issued by an issuer which has no rated short-term debt
obligations comparable in priority and security. A Second Tier security is any
Eligible Security (see VALUATION OF MONEY MARKET PORTFOLIO at page 21 for a
discussion of Eligible Securities) which is not a First Tier security.
A-2
<PAGE> 29
APPENDIX B
DEBT RATINGS
Moody's Investors Service, Inc. describes the four highest grades of
corporate debt securities and "Prime-1" and "Prime-2" commercial papers as
follows:
BONDS:
<TABLE>
<S> <C>
Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt edge."
Interest payments are protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective elements are likely to
change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issue.
Aa -- Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection may
not be as large as in Aaa securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which make the long
term risks appear somewhat larger than in Aaa securities.
A -- Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.
Baa -- Bonds which are rated Baa are considered as medium grade obligations, i.e., they
are neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
</TABLE>
COMMERCIAL PAPER:
Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:
- Leading market positions in well-established industries.
- High rates of return of funds employed.
- Conservative capitalization structures with moderate reliance on debt
and ample asset protection.
- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
- Well-established access to a range of financial markets and assured
sources of alternate liquidity.
Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by any of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
B-1
<PAGE> 30
Standard & Poor's Corporation describes the four highest grades of
corporate debt securities and A commercial paper as follows:
BONDS:
<TABLE>
<S> <C>
AAA -- Bonds rated AAA are highest grade obligations. They possess the ultimate degree
of protection as to principal and interest. Marketwise, they move with interest
rates, and hence provide the maximum safety on all counts.
AA -- Bonds rated AA also qualify as high grade options and in the majority of
instances differ from AAA issues only in small degree. Here, too, prices move
with the long term money market.
A -- Bonds rated A are regarded as upper medium grade. They have considerable
investment strength but are not entirely free from adverse effects of changes in
economic and trade conditions. Interest and principal are regarded as safe. They
predominantly reflect money rates in their market behavior, but to some extent,
also economic conditions.
BBB -- The BBB, or medium grade category, is borderline between definitely sound
obligations and those where the speculative element begins to predominate. These
bonds have adequate asset coverage and normally are protected by satisfactory
earnings. Their susceptibility to changing conditions, particularly to
depressions, necessitates constant watching. Marketwise, the bonds are more
responsive to business and trade conditions than to interest rates. This group is
the lowest which qualifies for commercial bank investment.
</TABLE>
COMMERCIAL PAPER:
Commercial paper rated A by Standard & Poor's Corporation has the following
characteristics: Liquidity ratios are better than the industry average. Long
term senior debt rating is A or better. In some cases BBB credits may be
acceptable. The issuer has access to at least two additional channels of
borrowing. Basic earnings and cash flow have an upward trend with allowances
made for unusual circumstances. Typically, the issuer's industry is well
established, the issuer has a strong position within its industry and the
reliability and quality of management are unquestioned. Issues rated A are
further referred to by use of numbers 1, 2 and 3 to denote relative strength
within this classification.
B-2
<PAGE> 31
STATEMENT OF
ADDITIONAL INFORMATION
MAY 1, 1996
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
------------------------
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS, BUT SHOULD BE READ
IN CONJUNCTION WITH THE CURRENT PROSPECTUS FOR MONY SERIES FUND, INC. DATED MAY
1, 1996. TO OBTAIN THIS PROSPECTUS PLEASE CALL 1-800-487-6669 OR WRITE:
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
GENERAL INFORMATION................................................................... 1
INVESTMENT RESTRICTIONS............................................................... 1
INVESTMENT ADVISORY AND OTHER SERVICES................................................ 3
Distribution of Shares.............................................................. 4
Custodian........................................................................... 5
Independent Accountants............................................................. 5
Service Marks License............................................................... 5
MANAGEMENT OF THE FUND................................................................ 6
SUBSEQUENT ANNUAL MEETINGS............................................................ 8
CONTROL PERSONS....................................................................... 8
PORTFOLIO BROKERAGE AND RELATED PRACTICES............................................. 8
FEDERAL INCOME TAX STATUS............................................................. 9
PERFORMANCE DATA...................................................................... 9
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS................................ F-1
</TABLE>
<PAGE> 32
GENERAL INFORMATION
MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized on
December 14, 1984, currently consists of seven (7) different Portfolios that
are, in effect, separate investment funds: Equity Income Portfolio, Equity
Growth Portfolio, Intermediate Term Bond Portfolio, Long Term Bond Portfolio,
Government Securities Portfolio, Money Market Portfolio, and Diversified
Portfolio (the "Portfolios"). The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, diversified, management
investment company. This registration does not imply any supervision by the
Securities and Exchange Commission over the Fund's management or its investment
policies or practices.
For more detailed information about the Fund, including information on the
purchase, redemption and pricing of the shares of the Fund, as well as the
Fund's tax status, see the Prospectus of the Fund (STRUCTURE OF THE FUND,
PURCHASE AND REDEMPTION OF SHARES, SHARES IN THE FUND, FEDERAL INCOME TAX
STATUS).
INVESTMENT RESTRICTIONS
A description of the investment objectives of each Portfolio, as well as
the policies through which those objectives are pursued, is contained in the
Prospectus (INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS).
In addition, the current Portfolios of the Fund are subject to certain
fundamental investment restrictions that may not be changed except with the
approval of a majority vote of the outstanding shares of the Portfolio affected
(which for this purpose and under the 1940 Act means the lesser of (i) 67
percent of the Portfolio shares represented at a meeting at which more than 50
percent of the outstanding Portfolio shares are represented or (ii) more than 50
percent of the outstanding Portfolio shares). The Fund may in the future create
new portfolios that may be subject to different investment restrictions.
The fundamental investment restrictions applicable to the seven current
Portfolios, including those fundamental restrictions described in the Prospectus
(INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS), are:
1. The Portfolios will not: (a) invest in the securities of any
company for the purpose of exercising control or management thereof (alone
or together with the other Portfolios); (b) write or purchase put or call
options; (c) purchase securities on margin, except for such short-term
credits as are necessary for the clearance of transactions, (d) effect a
short sale of securities, or (e) invest in obligations that are not
denominated in United States dollars.
2. Securities of other issuers will not be underwritten, except that
the right is reserved for each Portfolio to purchase for investment, on
original issue or otherwise, securities that may not subsequently be
distributed to the public without registration or that are exempt from
registration, to the extent that investments in such securities will not
exceed 10 percent of the value of each Portfolio's total assets at the time
such an investment is made. Expenses of any such registration will be borne
by such Portfolio only if its best efforts to have the issuer agree to bear
such expenses are unsuccessful.
3. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
4. The Portfolios will not purchase or sell commodities, commodity
contracts, or oil or gas interests, except that the right is reserved for
each Portfolio to purchase securities of issuers which invest or deal in
the foregoing.
1
<PAGE> 33
5. The Portfolios will not engage in the issuance of senior
securities, except in the case of certain borrowings, as described in
paragraph (7) below.
6. Loans, both long and short term, may be made by a Portfolio only
through the purchase or acquisition of privately-placed bonds, debentures,
notes or other evidences of indebtedness (that may or may not be
convertible into stock) of a type customarily acquired by institutional
investors provided, however, that no such purchase or acquisition will be
made if, as a result thereof, more than 10 percent of the value of the
Portfolio's assets would be so invested. (Any such "loan" may be considered
a security subject to the 10 percent investment limitation referred to in
(2) above.) The purchase or acquisition of repurchase agreements,
certificates of deposit or of portions of publicly distributed bonds,
debentures, or other securities, shall not be considered the making of a
loan by the Portfolios for purposes of this restriction.
7. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
8. In general, the Portfolios do not intend to concentrate investments
in any one industry. Accordingly, no Portfolio will make an investment in a
particular industry, if as a result of such investment more than 25 percent
of the value of its assets would be invested in that industry, except that
this restriction shall not apply to (a) obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities or (b) certificates
of deposit issued by, time deposits in, bankers' acceptances accepted by,
or repurchase agreements with, banks organized within the United States.
For purposes of this restriction, neither finance companies as a group nor
utility companies as a group are considered to be a single industry and
will be grouped instead according to their services; for example, gas,
electric, and telephone utilities will each be considered a separate
industry.
9. The Fund will operate as a diversified company as that term is used
in the Investment Company Act of 1940. This means that 75 percent of the
assets of each Portfolio other than the Money Market Portfolio and 100% of
the assets of the Money Market Portfolio is subject to the limitation that
no purchase of a security -- other than cash, cash items, and securities of
the U.S. Government, its agencies or instrumentalities -- will be made if,
as a result of such purchase: (a) more than 5 percent of the value of the
Portfolio's assets would be invested in the securities of one issuer, or
(b) the Fund as a whole or any Portfolio would hold more than 10 percent of
the outstanding voting securities of any one issuer. In addition to the
above limitations, the Money Market Portfolio may not have invested more
than (x) the greater of 1 percent of its Total Assets or $1,000,000 in
securities of any issuer, and (y) 5 percent of Total Assets in securities
of all issuers which were, when acquired by the Portfolio (either initially
or on rollover), Second Tier Securities (see Appendix A of the Prospectus
for a definition of Second Tier Securities). Some uncertainty exists as to
whether certain of the types of bank obligations in which a Portfolio may
invest, such as certificates of deposit and bankers' acceptances, should be
classified as "cash items" rather than "securities" for purposes of this
restriction, which is a diversification requirement under the 1940 Act.
Interpreting most bank obligations as "securities" limits the amount a
Portfolio may invest in the obligations of any one bank to 5 percent of its
total assets. If there is an authoritative decision that any of these
obligations are not "securities" for purposes of this diversification test,
this limitation will not apply to the purchase of such obligations.
10. No Portfolio may purchase or acquire securities of other
investment companies, except in connection with a merger, consolidation,
acquisition or reorganization, or except by purchase in the open market of
securities of closed-end investment companies where no underwriter's or
dealer's commission or profit, other than customary broker's commission, is
involved, provided that immediately thereafter such Portfolio or the Fund
as a whole may not own (a) securities of investment companies having an
aggregate value in excess of 10 percent of such Portfolio's total assets;
(b) more than 3 percent of the
2
<PAGE> 34
outstanding voting stock of the investment company; or (c) securities of
the investment company having an aggregate value in excess of 5 percent of
the Portfolio's total assets.
11. No Portfolio will invest more than 10 percent of its total assets
in illiquid assets, including illiquid restricted securities, repurchase
agreements maturing in more than seven days, and non-negotiable time
deposits maturing in more than seven days.
12. The Portfolios will not participate on a joint or a joint and
several basis in trading accounts in securities but this restriction does
not prevent the aggregation of orders for the sale or purchase of Portfolio
securities with the other Portfolios or with any other accounts advised or
sponsored by the Investment Adviser or any of its affiliates to reduce
brokerage commissions or otherwise to achieve the best overall execution.
13. No Portfolio will invest in foreign securities that are not
publicly traded in the United States if at the time of the acquisition more
than 10 percent of such Portfolio's total assets would be invested in such
securities.
The Money Market Portfolio is subject to the additional investment
restriction that it will not invest in any security with a remaining maturity in
excess of one year, except that underlying collateral securities held pursuant
to repurchase agreements may have a remaining maturity of more than one year.
INVESTMENT ADVISORY AND OTHER SERVICES
The Fund has entered into an Investment Advisory Agreement with MONY Life
Insurance Company of America (the "Investment Adviser"), as described in the
Prospectus (INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES).
The Investment Adviser will provide portfolio management and investment
advice to the Fund, as described in the Prospectus, with respect to the seven
current Portfolios of the Fund and any portfolio that the Fund may create in the
future if the Fund designates the Investment Adviser to act as investment
adviser and manager for such new portfolio. The Fund may, at its option, appoint
a different investment adviser for any new portfolio. The Investment Adviser
also is obligated to perform certain administrative and management services for
the Portfolios it manages and to provide all executive, administrative, clerical
and other personnel necessary to operate the Fund, and to pay the salaries of
all these persons. The Investment Adviser will furnish the Fund with office
space, facilities, and equipment and will pay the day-to-day expenses for their
operation and maintenance.
The Investment Adviser has entered into a Services Agreement with The
Mutual Life Insurance Company of New York ("MONY"), as briefly described in the
Prospectus. Under this Services Agreement MONY will provide the Investment
Adviser, with some or all of the personnel, services, facilities, supplies and
equipment necessary for the Adviser to carry out its duties to the Fund. In
return the Investment Adviser will pay to MONY all, or a portion, of the
investment management fee the Investment Adviser receives from the Fund. The
Investment Adviser is a wholly-owned subsidiary of MONY, a mutual life insurance
company organized under the laws of the State of New York in 1842. MONY is
licensed to do business in all fifty states, the District of Columbia, Puerto
Rico, the Virgin Islands, and certain Canadian Provinces. Because the Investment
Advisory Agreement and Services Agreement are interrelated and dependent on each
other, MONY may be deemed to be an investment adviser to the Fund for certain
regulatory purposes. Both MONY and the Investment Adviser are registered as
investment advisers under the Investment Advisers Act of 1940.
The Fund will pay the Investment Adviser an investment management fee,
which will be a daily charge equal to an annual rate of .40 percent of the first
$400 million of the aggregate average daily net assets of the Portfolios, .35
percent of the next $400 million of the aggregate average daily net assets of
the Portfolios, and .30 percent of the aggregate average daily net assets of the
Portfolios in excess of $800 million. The daily charge is divided among the
Portfolios in proportion to their average net assets each day, whether or not
the net assets of each Portfolio are valued on that day. Each Portfolio's share
of the fee is deducted on each
3
<PAGE> 35
business day prior to determining the Portfolio's net asset value for that date
and is credited to the Investment Adviser.
The Investment Adviser will pay for (i) the legal, accounting and all other
expenses of organizing the Fund, initially registering and qualifying the Fund
and its securities under federal and state securities laws (including the costs
of printing any prospectuses or other materials in connection with the initial
registration or qualification), (ii) the fees and expense for computing the net
asset value of the Fund's capital stock attributable to the Portfolios; (iii)
the expense in rendering investment advice to the Fund (including any payment to
MONY as agreed to in connection with the Services Agreement); and (iv) the
compensation of directors, officers and employees of the Fund who are interested
persons (as defined by the 1940 Act) of the Investment Adviser. The Fund will
bear all other expenses, including (but without limitation): (a) legal, auditing
or accounting fees and expenses; (b) interest expenses; (c) brokerage fees and
commissions; (d) taxes or governmental fees; (e) the cost of preparing share
certificates or any other direct expense of issue, sale, underwriting,
distribution, redemption or repurchase of shares of the Fund; (f) the cost of
preparing and distributing reports and notices to shareholders; (g) the cost of
holding the Fund's annual or special shareholders' meetings and of any proxy
solicitation; (h) the fees or disbursements of dividend, disbursing, plan,
transfer or other agent; (i) fees or disbursements of custodians of the Fund's
assets; (j) the compensation of all directors, officers and employees of the
Fund who are not interested persons (as defined by the 1940 Act) of the
Investment Adviser; (k) the cost of any fidelity bond for any officer, agent or
employee of the Fund required under the 1940 Act or otherwise; (l) the cost of
any directors and officers' insurance for any directors or officers of the Fund.
The Fund will also bear the cost of maintaining the effectiveness of its
registration and qualification of its capital stock for sale (including the
preparation, printing and mailing of any prospectuses or other materials
required by federal or state authorities); these expenses will be reimbursed to
the Fund by MONY Securities Corp. ("MSC"), a wholly-owned subsidiary of MONY, as
principal underwriter, as described below in "Distribution of Shares." The Fund
will bear any extraordinary or non-recurring expenses (including expenses
associated with legal claims, liabilities, litigation costs and any related
indemnification).
The Investment Adviser has agreed to reimburse the Fund for the amount, if
any, by which the aggregate ordinary operating expenses of any Portfolio in any
calendar year exceed the most restrictive expense limitations then in effect
under state securities law or regulations, as described in the Prospectus
(INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES).
DISTRIBUTION OF SHARES
The Fund presently intends to offer to sell its shares continuously, on a
no-load basis, to MONY Life Insurance Company of America ("MONY America") and
MONY for allocation to MONY America Variable Account L and MONY Variable Account
L to fund benefits under Flexible Premium Variable Life Insurance Contracts
issued by those companies, and to MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option Contracts issued by those
companies, and to MONY America and MONY for allocation to MONY America Variable
Account A and MONY Variable Account A to fund benefits under Flexible Payment
Variable Annuity Contracts issued by those companies, and to MONY for allocation
to Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts issued by MONY. These variable accounts ("Variable Accounts")
invest in shares of the Fund in accordance with allocation instructions received
from Contract holders. (Shares were also purchased by MONY to provide operating
capital for the Fund.) MSC will act as "principal underwriter" of the Contracts
and, therefore, of the shares of the Fund pursuant to written Underwriting
Agreements with the Fund, MONY America and MONY. The Underwriting Agreements
were initially approved by the Fund's Board of Directors, including a majority
of the non-interested directors (as defined by the 1940 Act), on December 20,
1984. Continuance of the Underwriting Agreement with the Fund, MONY and MONY
America for an additional year was most recently approved by the Fund's Board of
Directors on February 8, 1996. The agreements will continue in effect if
approved annually by the Fund's Board of Directors, including a majority of the
non-interested directors. MSC will not receive commissions or other compensation
for acting as
4
<PAGE> 36
principal underwriter of the Fund's shares, although MSC's agents and
representatives may receive sales commissions in connection with their sale of
the Contracts. Since shares will be sold only to MONY and MONY America for
allocation to the Variable Accounts, and to MONY in respect of its providing
operating capital to the Fund, it is expected that the Fund will have no
distribution expenses other than the expense of the preparation, printing and
mailing of prospectuses. MONY has agreed to bear such start-up expenses, as well
as any other distribution expenses that may arise.
MSC, as broker-dealer for the Contracts, will be reimbursed by MONY and
MONY America for these distribution expenses. If the Fund in the future is to
bear any of these distribution expenses, the Fund's Board of Directors will
formulate a written distribution plan that complies with the rules of the
Securities and Exchange Commission. Both this distribution plan and any
distribution agreement entered into pursuant to the plan will be approved by the
Fund's Board of Directors, including a majority of the non-interested directors
(as defined by the 1940 Act). The plan will then be submitted for approval at
the next annual meeting of shareholders. Thereafter, both the distribution plan
and any related distribution agreement will continue in effect if approved
annually by a majority of the Fund's Board of Directors, including a majority of
the non-interested directors (as defined by the 1940 Act).
CUSTODIAN
Chemical Bank, 277 Park Avenue, New York, New York 10172 is the custodian
of the securities held by the Portfolios of the Fund, and is authorized to use
the facilities of the Depository Trust Company and the facilities of the
book-entry system for the Federal Reserve Bank. The Fund acts as its own
transfer agent and dividend-disbursing agent.
INDEPENDENT ACCOUNTANTS
The financial statements and the financial highlights table included in
this Registration Statement have been audited by Coopers & Lybrand L.L.P.,
independent accountants, and are included herein in reliance upon the
accompanying report of that firm, which report is given upon their authority, as
experts in accounting and auditing. The business address of Coopers & Lybrand is
1301 Avenue of the Americas, New York, New York, 10019.
SERVICE MARKS LICENSE
As part of the Investment Advisory Agreement, the Investment Adviser
(acting on behalf of MONY) has granted the Fund permission to use the word
"MONY" in its corporate name and granted a royalty-free, non-exclusive license
to use any service marks adopted by MONY that are appropriate for use by the
Fund. However, the Investment Adviser may terminate this license if MONY, or a
company controlled by it, ceases to be the Fund's investment adviser. The
Investment Adviser may also terminate the license for any other reason upon 60
days' written notice. In this event, the Fund would no longer be able to use the
word "MONY" in its corporate name. In addition, the Investment Advisory
Agreement would also terminate 120 days after the Fund receives such notice,
unless a majority of the outstanding voting shares of the Fund vote to continue
the Agreement notwithstanding the license's termination.
5
<PAGE> 37
MANAGEMENT OF THE FUND
The members of the Fund's Board of Directors were selected initially by
MONY. In the future the directors will be elected annually by the Fund's
shareholders. The names of all directors and officers of the Fund and the
principal occupation of each during the last five years are shown below.
DIRECTORS AND OFFICERS OF THE FUND
<TABLE>
<CAPTION>
POSITIONS HELD WITH PRINCIPAL OCCUPATIONS
NAME AND ADDRESS REGISTRANT DURING PAST 5 YEARS
- --------------------------- ----------------------- --------------------------------------------------
<S> <C> <C>
Kenneth M. Levine* Director, Chairman of 1/91 to present -- Executive Vice President and
1740 Broadway the Board, President Chief Investment Officer, 2/90 to
New York, New York 10019 of the Fund 1/91 -- Executive Vice President, 8/89 to
2/90 -- Senior Vice President -- Pension Sector,
1/88 to 8/89 -- Senior Vice President, MONY;
9/91 to present -- Director and Chairman, MONY
Realty Partners, Inc., MONY Bloomfield Hills,
Inc. and 1740 Ventures, Inc.; 9/91 to present --
Chairman, MONY-Rockville/GP, Inc.; 7/91 to
present -- Director, MONY Life Insurance Company
of America; 8/89 to present -- Director, MONY
Advisers, Inc.
</TABLE>
<TABLE>
<S> <C> <C>
Floyd L. Smith Director of the Fund 1/91 to 12/31/91 -- Vice Chairman, 5/89 to 1/91 --
Naples, Florida 33963 Vice Chairman, Chief Investment Officer, 10/88
to 12/91 -- Trustee, 10/88 to 5/89 -- Trustee,
Executive Vice President and Chief Investment
Officer; 1/85 to 10/88 -- Executive Vice
President and Chief Investment Officer, MONY;
3/85 to 10/88 -- Director, MONY Life Insurance
Company of Canada; 1/85 to 2/91 -- Director,
MONY Legacy Life Insurance Company; 1/85 to
12/87 -- MONY Securities Corp.; 1/85 to
12/88 -- Trustee, Vice President and Treasurer,
MONY Real Estate Investors; 1/85 to
12/91 -- Director, MONY Credit Corporation; 1/85
to 12/90 -- Director, MONYCO, Inc. and 1/85 to
12/91 -- Director, 1740 Ventures, Inc.; 8/86 to
12/90 -- Director and President, MONY Funding
Inc.; 5/86 to 12/91 -- Director, MONY Bloomfield
Hills, Inc. and MONY-Rockville/GP, Inc.; 7/85 to
12/91 -- Director, MONY Realty Partners, Inc.;
4/86 to 8/91 -- Director, MONY Realty
Management, Inc.; 3/87 to 12/89 -- Director, ONE
Memorial Drive, Inc.; 1/85 to 3/90 -- Chairman
and Member, The MONY Variable Account-A and The
MONY Variable Account-B.
Joel Davis Director of the Fund President, Woodworker, Inc. (Magazine Publisher).
Westport, CT 06880 Director, Magazine Publishers of America.
Michael J. Drabb Director of the Fund 5/89 to 5/92 -- Executive Vice President, 1/85 to
Convent Station, 5/89 -- Senior Vice President, MONY; 1/85 to
New Jersey 07961 2/91 -- Director and Vice President, MONY Legacy
Life Insurance Company; 1/85 to
5/92 -- Financial Liaison Officer, MONY Credit
Corporation; 11/87 to 3/90 -- Member, The MONY
Variable Account-B Committee; 1/86 to
12/91 -- MONY Funding, Inc.; 7/87 to
12/91 -- Director, MONY Reinsurance Corporation,
MONY-RE Group, Inc. and MONY-RE Management,
Inc.; 3/87 to 12/89 -- Director, ONE Memorial
Drive, Inc.; 7/87 to 12/91 -- Director, MONY
Credit Corporation; 9/85 to 12/89 -- Director,
MONY Agricultural Financial Services, Inc.; 9/85
to 5/92 -- Director, Bell Investment Acquisition
Corporation; 6/85 to 5/92 -- Vice President,
MONY Life Insurance Company of America.
</TABLE>
6
<PAGE> 38
<TABLE>
<CAPTION>
POSITIONS HELD WITH PRINCIPAL OCCUPATIONS
NAME AND ADDRESS REGISTRANT DURING PAST 5 YEARS
- --------------------------- ----------------------- --------------------------------------------------
<S> <C> <C>
Alan J. Hartnick Director of the Fund 2/93 to present -- Partner, Abelman Frayne &
New York, New York 10017 Schwab, Attorneys at-Law; 1973 to
2/93 -- Partner, Colton, Hartnick, Yamin &
Sheresky, Attorneys-at-Law.
Edward E. Hill Vice President -- 1/90 to present -- Vice President -- Chief
1740 Broadway Compliance of the Compliance Officer; 5/87 to 1/90 -- Vice
New York, New York 10019 Fund President -- Compliance; MONY. 7/91 to
present -- Vice President, Compliance, MONY Life
Insurance Company of America; 5/86 to
present -- Vice President Compliance, MONY
Financial Planning, Inc.; 1/84 to
present -- Vice President, Compliance, MONY
Advisers, Inc. and MONY Securities Corp.
John P. Keller Controller of the Fund 2/88 to present -- Vice President -- Investment
1740 Broadway Accounting, MONY. 12/87 to 7/88 -- Controller,
New York, New York 10019 ONE Memorial Drive, Inc.; 5/86 to 7/88 --
Controller, MONY Realty Management, Inc.; 4/86
to 7/88 -- Controller, MONY -- Rockville/GP,
Inc., and MONY Bloomfield Hills, Inc.; 7/85 to
7/88 -- Controller, MONY Realty Partners, Inc.;
1/85 to 7/88 -- Assistant Controller, MONYCO,
Inc.; 1/85 to 7/88 -- Controller, MONY Advisers,
Inc. and MONY Credit Corporation.
David V. Weigel Treasurer of the Fund 5/91 to present -- Vice President -- Treasurer,
1740 Broadway MONY; Vice President and Treasurer, MONY Credit
New York, New York 10019 Corporation and 1740 Ventures, Inc.; 4/91 to
present -- Director, MONY Securities Corp., MONY
Advisers, Inc., MONY Brokerage, Inc.; 8/91 to
present -- Treasurer, MONY Life Insurance
Company of America and MONY Series Fund, Inc.
Frederick C. Tedeschi Secretary of the Fund 9/89 to Present -- Vice President -- Chief
1740 Broadway Counsel, Individual Financial Services, 10/88 to
New York, New York 10019 9/89 -- Senior Counsel -- Individual Financial
Services, 9/87 to 10/88 -- Associate General
Counsel, MONY; 1/90 to present -- Secretary,
MONY Brokerage, Inc.; 2/90 to 2/91 -- Director,
MONY Legacy Life Insurance Company.
</TABLE>
- ---------------
* Mr. Levine, who is an interested person (as that term is defined in the 1940
Act), is a salaried employee of MONY.
No director or officer of the Fund who is also an officer, director or
employee of MONY or MONY America is entitled to any additional remuneration from
the Fund for his services as one of its directors or officers. Each director of
the Fund who is not an interested person of the Fund will receive a fee of
$1,750 per calendar quarter plus an additional amount of $1,000 for each meeting
of the Board, of a Committee of the Board (as provided for in the By-Laws), or
of the Fund's shareholders that he attends. Non-interested directors will also
be reimbursed for all expenses incurred in connection with attendance at
meetings.
The 1940 Act requires that a majority of the Fund's Board of Directors
shall be persons who are not interested persons of MONY, the Investment Adviser
or the Fund. The membership of the Board complies with this requirement. Certain
actions of the Board, including the annual continuance of the Investment
Advisory Agreement between the Fund and the Investment Adviser and the Services
Agreement between the Investment Adviser and MONY, must be approved by a
majority of the members of the Board who are not interested persons of MONY, the
Investment Adviser or the Fund. One of the five members of the Board, Mr. Levine
is an interested person of MONY, the Investment Adviser and the Fund (as that
term is defined in the 1940 Act) because he is an affiliated person of MONY and
the Investment Adviser.
7
<PAGE> 39
SUBSEQUENT ANNUAL MEETINGS
The Board of Directors of the Fund has amended the By-laws of the Fund to
provide that annual meetings will not be held in any year unless the Investment
Company Act of 1940 (the "1940 Act") requires action on one or more of the
following matters: (1) election of directors; (2) approval of investment
advisory agreement; and (3) ratification of selection of independent public
accountants; and (4) approval of a distribution agreement. The 1940 Act
essentially requires election of directors by shareholders when less than a
majority then in office had been elected by shareholders, and it requires
ratification of the selection of independent public accountants when the
selection of such accountants has not previously been ratified by the
shareholders. It also requires approval of an agreement with an investment
advisor when such agreement has not previously been approved by the shareholders
(other than an agreement with an investment adviser entered into when a new
portfolio of the Fund is created). Currently, the 1940 Act requires a
distribution agreement to be approved by either the board of directors or the
shareholders.
CONTROL PERSONS
MONY America, a wholly-owned subsidiary of MONY, and MONY through their
respective Variable Accounts will own all of the Fund's outstanding shares,
other than the shares in the Fund purchased for investment by MONY to provide
operating capital for the Portfolios (and any new portfolios) of the Fund
started and any additional shares acquired by MONY through reinvestment of
dividends on those shares. The shares held by the Variable Accounts will
generally be voted in accordance with instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The shares held by MONY in respect
of its providing operating capital to the Fund's Portfolios will be voted in the
same proportions as those voted by MONY and MONY America which are held in the
Variable Accounts. The Fund might nonetheless be deemed to be controlled by MONY
and MONY America by virtue of the definitions contained in the 1940 Act although
the Fund disclaims such control. The amount of shares of each Portfolio of the
Fund owned by directors or officers of the Fund will therefore be less than one
percent.
PORTFOLIO BROKERAGE AND RELATED PRACTICES
The Investment Adviser, which is at all times subject to the direction and
supervision of the Board of Directors of the Fund, is responsible for decisions
to buy and sell securities for the Portfolios, the selection of brokers and
dealers to effect the transactions, and the negotiations of brokerage
commissions, if any. The Investment Adviser may fulfill these responsibilities
to the Fund by using the services of MONY and MONY's Investment Department
personnel under the terms of the Services Agreement between the Investment
Adviser and MONY. For more detailed information about the Services Agreement,
see INVESTMENT ADVISORY AND OTHER SERVICES at pages 3-5.
Transactions on a stock exchange in equity securities will be executed
primarily through brokers that will receive a commission paid by the Fund.
Transactions in money market instruments and bonds, on the other hand, will not
normally incur any brokerage commissions. Such securities, as well as equity
securities traded in the over-the-counter market, are generally traded on a
"net" basis with dealers acting as principals for their own accounts without a
stated commission, although the price of a security usually includes a profit to
the dealer. In underwritten offerings, securities are purchased at a fixed price
that includes an amount of compensation to the underwriter, generally referred
to as the underwriter's concession or discount. Certain of these securities may
also be purchased directly from an issuer, in which case neither commissions nor
discounts are paid.
The Investment Adviser is not obligated to deal with any dealer or group of
dealers in the execution of transactions for the Fund's Portfolios. In
connection with any securities transaction that involves a commission payment,
the Investment Adviser negotiates the commission with the broker in part on the
basis of the quality and quantity of execution services that the broker
provides, in light of generally prevailing commission rates.
8
<PAGE> 40
For the years 1993, 1994, and 1995, the Fund paid $312,053, $157,223, and
$22,126, respectively, in brokerage commissions.
When selecting a broker or dealer in connection with a transaction for any
Portfolio, the Investment Adviser gives consideration to whether the broker or
dealer has furnished MONY or any companies controlled by MONY with certain
research services. These services, which include statistical and economic data
and research reports on particular companies and industries, are services that
brokerage houses customarily provide to institutional investors. MONY personnel
may use these services in connection with all of the investment activities of
MONY or its companies, and some of the data or services obtained in connection
with the execution of transactions for a Portfolio may be used in managing other
investment accounts of MONY or its companies. Conversely, brokers and dealers
furnishing such services may be selected for the execution of transactions of
such other accounts, while the data or service may be used by MONY personnel in
providing investment management for the Fund.
It is the present practice of the Investment Adviser to use brokers
selected primarily on the basis of their furnishing not only satisfactory
execution of the transaction but also research services such as analyses and
reports concerning issuers and industries, economic factors and portfolio
strategy. In some cases, this could cause the Fund to pay commissions or spreads
in excess of the amount which another broker would have charged for effecting a
similar transaction. In any such case, the Investment Adviser will determine in
good faith that the greater commission or spread is reasonable in relation to
the value of the services provided by the executing broker viewed in terms of
the particular transaction or the Investment Adviser's responsibilities to each
Portfolio and overall responsibilities to all the Portfolios of the Fund and
accounts under the Investment Adviser's and MONY's management. No services other
than brokerage, research and statistical services are considered by the
Investment Adviser in determining the reasonableness and amount of commissions
or spreads to be paid to any broker. All such services obtained from brokers
benefit generally all the accounts and Portfolios under the Investment Adviser's
management and are not identified in any specific account or Portfolio, and may
benefit other accounts under MONY's management. Information so received will be
in addition to and not in lieu of the services required to be performed by the
Investment Adviser.
The Investment Adviser may employ a broker affiliated with the Investment
Adviser or MONY to execute brokerage transactions on behalf of the Portfolios,
as long as the Investment Adviser obtains a price and execution as favorable as
that which would be available through the use of an unaffiliated broker, and no
less favorable than the affiliated broker's contemporaneous charges to its other
most favored, but unaffiliated, customers. The Fund may not engage in any
transactions in which MONY or any of its affiliates acts as principal, including
over-the-counter purchases and negotiated trades in which such a party acts as a
principal.
The Investment Adviser or MONY may enter into business transactions with
brokers or dealers other than using them to execute Portfolio securities
transactions for accounts the Investment Adviser manages. These other
transactions will not affect the Investment Adviser's selection of brokers or
dealers in connection with portfolio transactions for the Fund.
The portfolio turnover rates for each Portfolio of the Fund, for the period
August 1, 1985 through December 31, 1985, for the years ended December 31, 1986,
December 31, 1987, December 31, 1988, December 31, 1989, December 31, 1990,
December 31, 1991, December 31, 1992, December 31, 1993, December 31, 1994, and
December 31, 1995, are shown on pages 10-14 of the Prospectus.
FEDERAL INCOME TAX STATUS
The Fund and each of its portfolios intend to qualify as a "regulated
investment company" under the applicable provisions of the Internal Revenue Code
of 1986, as amended (the "Code"). To qualify for treatment as a regulated
investment company, the Fund must meet certain requirements specified in the
Code as described in the Prospectus ("Federal Income Tax Status"). If the Fund
qualifies as a "regulated investment company" by complying with applicable
provisions of the Code and distributes all of its net income (both ordinary
income and capital gain), the Fund will be relieved of federal income tax on the
amounts distributed.
9
<PAGE> 41
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect as
interpreted by the courts and the Internal Revenue Service. For the complete
provisions, reference should be made to the pertinent Code sections and the
Treasury Regulations promulgated thereunder. The Code and these Regulations are
subject to change by legislative, administrative or judicial action. Moreover,
although "series" fund regulated investment companies have been in existence for
many years, there is very little authority interpreting the pertinent provisions
of the Code and Treasury Regulations as they are applied to a "series" fund type
of regulated investment company like the Fund.
PERFORMANCE DATA
Money Market Portfolio. For the seven day period ended December 31, 1995,
the yield was 5.27% and the effective yield was 5.41%.
The yield was calculated by dividing the sum of dividends declared during
the 7 day period on one share purchased at the beginning of the 7 day period by
the value on the first day (the resulting quotient being the "Base Period
Return") and multiplying the Base Period Return by 365 divided by 7 to obtain
the annualized yield.
The effective yield was calculated by compounding the Base Period Return
calculated in accordance with the preceding paragraph, adding 1 to the Base
Period Return, raising that sum to a power equal to 365 divided by 7 and
subtracting 1 from the result.
Dividends reflect the net investment income of the Portfolio. Net
investment income reflects earnings on investments less expenses of the Fund
including the Investment Management Fee (which for calculating the yield and
effective yield quoted above will be the fee which would be charged based upon
the amount of assets under management on the last day of the period for which
the quoted yield is stated, which for the yield and the effective yield quoted
above is .40%). It is the practice of the Money Market Portfolio to pay
dividends daily in the form of shares (thereby maintaining the value of one
share of the Money Market Portfolio at $1.00). However, for the purpose of these
calculations, it has been assumed that no additional shares have been issued and
that dividends are paid in cash.
All Portfolios including the Money Market Portfolio. The average annual
total return for the one, five, and ten year periods ended December 31, 1995,
and for the period since inception through December 31, 1995, are shown in the
following table.
MONY SERIES FUND, INC.
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
FOR THE
PERIOD SINCE
FOR THE YEAR FOR THE FIVE INCEPTION FOR THE TEN
ENDED YEARS ENDED THROUGH YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
PORTFOLIO 1995 1995 1995 1995
- ---------------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Equity Growth (3/4/85)*....................... 30.54% 14.31% 12.96% 12.96%
Equity Income (3/4/85)*....................... 33.12% 15.23% 13.61% 13.44%
Intermediate Term Bond (3/1/85)*.............. 14.82% 8.49% 9.11% 8.00%
Long Term Bond (3/20/85)*..................... 30.04% 12.27% 12.01% 10.69%
Government Securities (5/1/91)*............... 10.89% n/a 7.24% n/a
Diversified (4/3/85)*......................... 26.32% 11.48% 11.21% 10.81%
Money Market.................................. 5.57% 4.64% 5.77% 5.73%
</TABLE>
- ---------------
* Inception date.
10
<PAGE> 42
The table above assumes that a $1,000 payment was made at the beginning of
the period shown, that no further payments were made, that any distributions
from the assets of the Portfolio were reinvested. The average annual total
return percentages shown in the table reflect the average annualized historical
rates of return, deductions for all charges, expenses, and fees of the Fund. The
table does not reflect charges and deductions which are, or may be, imposed
under the Contracts.
YIELD
The 30 day yield for each of the Portfolios, other than the Money Market
Portfolio, for the 30-day period ended December 31, 1995 is shown in the
following table.
MONY SERIES FUND, INC.
YIELD FOR 30-DAY PERIOD ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY INTERMEDIATE LONG TERM GOVERNMENT
GROWTH EQUITY INCOME TERM BOND BOND SECURITIES DIVERSIFIED
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Yield for 30 days ended
December 31, 1995....... .58% 3.17% 5.70% 6.09% 6.45% 2.06%
</TABLE>
The yield shown in the table above is computed by subtracting from the net
investment income of the Portfolio of the Fund charges and expenses of the Fund
with respect to the Portfolio and dividing the result by the value of the
Portfolio. For the Equity Growth and Equity Income Portfolios and for the stocks
and equity securities of the Diversified Portfolio of the Fund, net investment
income is the net of the dividends accrued (1/360 of the stated dividend rate
multiplied by the number of days the particular security is in the Portfolio) on
all equity securities during the 30-day period and expenses accrued for the
period. It does not reflect capital gains or losses. For the Intermediate Term
Bond, Long Term Bond and the Government Securities Portfolios and the debt
obligations held by the Diversified Portfolio of the Fund, net investment income
is the net of interest earned on the obligation held by the Portfolio and
expenses accrued for the period. Interest earned on the obligation is determined
by (i) computing the yield to maturity based on the market value of each
obligation held in the corresponding Portfolio at the close of business on the
thirtieth day of the period (or as to obligations purchased during that 30-day
period, based on the purchase price plus accrued interest); (ii) dividing the
yield to maturity for each obligation by 360; (iii) multiplying that quotient by
the market value of each obligation (including actual accrued interest) for each
day of the subsequent 30-day month that the obligation is in the Portfolio; and
(iv) totaling the interest on each obligation. Discount or premium amortization
is recomputed at the beginning of each 30-day period and with respect to
discount and premium on mortgage or other receivables-backed obligations subject
to monthly payment of principal and interest, discount and premium is amortized
on the remaining security, based on the cost of the security, to the weighted
average maturity date, if available, or to the remaining term of the security,
if the weighted average maturity date is not available. Gain or loss
attributable to actual monthly paydowns is reflected as an increase or decrease
in interest income during that period.
The yield shown reflects deductions for all charges, expenses, and fees of
the Fund. The table does not reflect charges and deductions which are, or may
be, imposed under the Contracts.
Net investment income of the Portfolio less all charges and expenses of the
Fund with respect to the Portfolio is divided by the product of the average
daily number of shares outstanding and the net asset value of one share on the
last day of the period. The sum of the quotient and 1 is raised to the 6th
power, 1 is subtracted from the result, and then multiplied by 2.
11
<PAGE> 43
The table below shows total returns for the year to date (January 1, 1996
to February 9, 1996) assuming a $1,000 payment made at the beginning of the
period and reflecting the same assumptions as the table appearing on page 10:
MONY SERIES FUND, INC.
YEAR TO DATE TOTAL RETURN
ASSUMING $1,000 PAYMENT AT BEGINNING OF PERIOD
<TABLE>
<CAPTION>
JANUARY 1, TO
FEBRUARY 9,
SUBACCOUNT 1996
------------------------------------------------------------------------
<S> <C>
Equity Growth.............................................. 5.78%
Equity Income.............................................. 5.97%
Intermediate Term Bond..................................... .66%
Long Term Bond............................................. -.94%
Government Securities...................................... .58%
Diversified................................................ 4.27%
Money Market............................................... .60%
</TABLE>
12
<PAGE> 44
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Report of Independent Accountants.................................................... F-2
EQUITY GROWTH PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-3
Statement of Operations for the year ended December 31, 1995....................... F-4
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-5
Portfolio of Investments as of December 31, 1995................................... F-6
EQUITY INCOME PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-11
Statement of Operations for the year ended December 31, 1995....................... F-12
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-13
Portfolio of Investments as of December 31, 1995................................... F-14
INTERMEDIATE TERM BOND PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-20
Statement of Operations for the year ended December 31, 1995....................... F-21
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-22
Portfolio of Investments as of December 31, 1995................................... F-23
LONG TERM BOND PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-25
Statement of Operations for the year ended December 31, 1995....................... F-26
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-27
Portfolio of Investments as of December 31, 1995................................... F-28
DIVERSIFIED PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-30
Statement of Operations for the year ended December 31, 1995....................... F-31
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-32
Portfolio of Investments as of December 31, 1995................................... F-33
GOVERNMENT SECURITIES PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-38
Statement of Operations for the year ended December 31, 1995....................... F-39
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-40
Portfolio of Investments as of December 31, 1995................................... F-41
MONEY MARKET PORTFOLIO
Statement of Assets and Liabilities as of December 31, 1995........................ F-42
Statement of Operations for the year ended December 31, 1995....................... F-43
Statements of Changes in Net Assets for the two years ended December 31, 1995 and
1994............................................................................ F-44
Portfolio of Investments as of December 31, 1995................................... F-45
NOTES TO FINANCIAL STATEMENTS for the two years ended
December 31, 1995 and 1994......................................................... F-47
</TABLE>
F-1
<PAGE> 45
MONY SERIES FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
MONY Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities of
the MONY Series Fund, Inc. (comprising, the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified, Money Market, and
Government Securities Portfolios), including the portfolios of investments, as
of December 31, 1995, the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the ten years in the
period then ended for all the Portfolios except Government Securities Portfolio
for which the period is for the four years ended December 31, 1995 and for the
period from May 1, 1991 (commencement of operations) to December 31, 1991. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the portfolios constituting MONY Series Fund, Inc. as of December 31,
1995, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and the
financial highlights for each of the periods referred to above, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 16, 1996
F-2
<PAGE> 46
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Securities, at value (cost $1,360,767) (Note 2).................................. $1,770,591
Cash............................................................................. 110,675
Dividends receivable............................................................. 2,076
----------
Total assets........................................................... 1,883,342
----------
LIABILITIES
Payable for fund shares redeemed................................................. 239
Accrued expenses:
Investment advisory fees.................................................... 638
Custodian fees.............................................................. 902
Professional fees........................................................... 7,226
Insurance fees.............................................................. 768
----------
Total liabilities...................................................... 9,773
----------
Net assets....................................................................... $1,873,569
=========
Net assets consist of:
Capital stock--authorized 150,000,000 shares of $.01 par value; outstanding,
74,621 shares.............................................................. $ 746
Additional paid-in capital.................................................. 1,465,664
Distribution in excess of realized capital gains............................ (2,665)
Net unrealized appreciation of investments.................................. 409,824
----------
Total net assets....................................................... $1,873,569
=========
Net asset value per share of outstanding capital stock ($1,873,569/74,621
shares)........................................................................ $ 25.11
=========
</TABLE>
See notes to financial statements.
F-3
<PAGE> 47
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Dividends.................................................................... $ 25,185
Interest..................................................................... 23,269
--------
Total investment income................................................. 48,454
--------
Expenses:
Investment advisory fees (Note 3)............................................ 7,056
Custodian fees............................................................... 6,540
Professional fees............................................................ 8,042
Director fees................................................................ 321
Miscellaneous fees........................................................... 378
--------
Total expenses.......................................................... 22,337
Expense reduction....................................................... (766)
--------
Net expenses............................................................ 21,571
--------
Net investment income............................................................. 26,883
--------
Realized and unrealized gain on investments (Note 2):
Realized gain from security transactions:
Proceeds from sales..................................................... 535,224
Cost of securities sold................................................. 441,492
--------
Net realized gain on investments.................................................. 93,732
Net increase in unrealized appreciation of investments............................ 349,191
--------
Net realized and unrealized gain on investments................................... 442,923
--------
Net increase in net assets resulting from operations.............................. $469,806
========
</TABLE>
See notes to financial statements.
F-4
<PAGE> 48
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
From operations:
Net investment income....................................... $ 26,883 $ 623,681
Net realized gains on investments (Note 2).................. 93,732 3,590,837
Net increase (decrease) in unrealized appreciation of
investments................................................ 349,191 (6,489,649)
---------- ------------
Net increase (decrease) in net assets resulting from
operations..................................................... 469,806 (2,275,131)
---------- ------------
Dividends and distributions to shareholders from:
Net investment income
($.39 and $.36 per share)(Note 4)......................... (26,948) (26,307)
Net realized gain from investment transactions
($1.34 and $.20 per share)(Note 4)........................ (93,732) (14,490)
Distribution in excess of realized capital gains
($.04 and $.00 per share)(Note 4)......................... (2,611) 0
---------- ------------
Total dividends and distributions to shareholders...... (123,291) (40,797)
---------- ------------
From capital stock transactions:
Proceeds from issuance of shares
(14,901 and 725,845 shares) (Note 5)...................... 348,609 14,972,346
Proceeds from dividends and distributions reinvested
(4,910 and 1,981 shares) (Note 4)......................... 123,291 40,797
Net asset value of shares redeemed
(20,796 and 3,500,693 shares)............................. (501,382) (70,104,135)
---------- ------------
Net decrease in net assets resulting from capital stock
transactions................................................... (29,482) (55,090,992)
---------- ------------
Net increase (decrease) in net assets............................ 317,033 (57,406,920)
Net assets beginning of year..................................... 1,556,536 58,963,456
---------- ------------
Net assets end of year (including undistributed net investment
income of $0 and $65, respectively)............................ $1,873,569 $ 1,556,536
========== ============
</TABLE>
See notes to financial statements.
F-5
<PAGE> 49
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<C> <S> <C>
COMMON STOCKS--89.2%
AEROSPACE/DEFENSE--0.9%
200 Boeing Co. ............................................................ $ 15,675
--------
AIRLINES--4.3%
300 AMR Corp.*............................................................. 22,275
300 Delta Airlines Inc. ................................................... 22,163
200 UAL Corp. ............................................................. 35,700
--------
80,138
--------
AUTOMOBILES--2.4%
400 Chrysler Corp. ........................................................ 22,150
400 Ford Motor Co. ........................................................ 11,600
200 General Motors Corp. Class (E)......................................... 10,575
--------
44,325
--------
BANKS/MAJOR--2.1%
200 Bankamerica Corp. ..................................................... 12,950
400 Citicorp............................................................... 26,900
--------
39,850
--------
BANKS/REGIONAL--2.3%
400 Banc One, Corp. ....................................................... 15,100
200 First Interstate Bancorp............................................... 27,300
--------
42,400
--------
BEVERAGES--1.6%
400 Coca-Cola Co. ......................................................... 29,700
--------
BIOTECHNOLOGY--1.3%
400 Amgen, Inc.*........................................................... 23,750
--------
CABLETELEVISION--1.5%
700 Comcast Corp. Class (A)................................................ 12,731
150 Tele Communications, Inc./Liberty Media Group, Series (A)*............. 4,031
600 Tele Communications, Inc./TCI Group, Series (A)*....................... 11,925
--------
28,687
--------
CHEMICALS--4.0%
100 Dow Chemical Co. ...................................................... 7,038
300 duPont (E.I.) de Nemours & Co. ........................................ 20,963
400 Hercules, Inc. ........................................................ 22,550
200 Monsanto, Co. ......................................................... 24,500
--------
75,051
--------
</TABLE>
See notes to financial statements.
F-6
<PAGE> 50
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- --------
<C> <S> <C>
COMMUNICATION SERVICES--0.6%
400 Airtouch Communications Inc.*.......................................... $ 11,300
--------
COSMETICS--0.6%
200 Gillette Co. .......................................................... 10,425
--------
DRUGS--9.1%
500 Merck & Co., Inc. ..................................................... 32,875
600 Pfizer Inc. ........................................................... 37,800
500 Pharmacia & Upjohn Inc. ............................................... 27,750
600 Schering-Plough Corp. ................................................. 19,375
500 Smithkline Beecham, PLC, ADR+.......................................... 32,850
200 Warner Lambert Co. .................................................... 19,425
--------
170,075
--------
ELECTRIC--2.8%
200 Emerson Electric Co. .................................................. 16,350
500 General Electric Co. .................................................. 36,000
--------
52,350
--------
ELECTRONICS--5.3%
500 AMP, Inc. ............................................................. 19,188
200 Applied Materials, Inc.*............................................... 7,875
200 Hewlett-Packard Co. ................................................... 16,750
200 Intel Corp. ........................................................... 11,350
300 Motorola, Inc. ........................................................ 17,100
600 Silicon Graphics, Inc.*................................................ 16,500
200 Texas Instruments, Inc. ............................................... 10,350
--------
99,113
--------
ENGINEERING & CONSTRUCTION--2.0%
300 Fluor, Corp. .......................................................... 19,800
400 Foster Wheeler Corp. .................................................. 17,000
--------
36,800
--------
ENTERTAINMENT--4.7%
400 Disney (Walt) Co. ..................................................... 23,600
1,000 News Corp., ADR+....................................................... 21,375
500 Time Warner, Inc. ..................................................... 18,937
500 Viacom, Inc. Class (B)*................................................ 23,688
--------
87,600
--------
</TABLE>
See notes to financial statements.
F-7
<PAGE> 51
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- --------
<C> <S> <C>
FINANCIAL SERVICES--2.9%
200 Federal Home Loan Mortgage Corp. ...................................... $ 16,700
300 Federal National Mortgage Assoc. ...................................... 37,238
--------
53,938
--------
FOOD PRODUCTS--0.6%
200 General Mills Inc. .................................................... 11,550
--------
FOREST PRODUCTS--0.4%
100 Georgia-Pacific Corp. ................................................. 6,863
--------
HOSPITAL MANAGEMENT--2.9%
400 Columbia/HCA Healthcare Corp. ......................................... 20,300
100 Oxford Health Plans, Inc.*............................................. 7,388
200 United Healthcare Corp. ............................................... 13,100
300 U.S. Healthcare, Inc. ................................................. 13,950
--------
54,738
--------
HOSPITAL SUPPLIES--1.4%
300 Johnson & Johnson...................................................... 25,688
--------
INSURANCE--2.3%
300 American International Group, Inc. .................................... 27,750
100 General Re Corp. ...................................................... 15,500
--------
43,250
--------
MACHINERY--3.4%
300 Case Corp. ............................................................ 13,725
200 Caterpillar, Inc. ..................................................... 11,750
600 Deere & Co. ........................................................... 21,150
500 Ingersoll-Rand Co. .................................................... 17,563
--------
64,188
--------
METALS--1.7%
600 Aluminum Company of America............................................ 31,725
--------
OFFICE & BUSINESS EQUIPMENT--4.2%
300 Compaq Computer Corp.*................................................. 14,400
200 General Motors, Corp. Class (E)........................................ 10,400
1,000 Inference Corp. Class (A).............................................. 19,000
100 International Business Machines Corp. ................................. 9,175
100 Microsoft, Corp.*...................................................... 8,775
400 Oracle Corp.*.......................................................... 16,950
--------
78,700
--------
</TABLE>
See notes to financial statements.
F-8
<PAGE> 52
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<C> <S> <C>
OIL--DOMESTIC--0.9%
100 Atlantic Richfield Co. ................................................ $ 11,075
200 Union Pacific Resources Group Inc. .................................... 5,075
--------
16,150
--------
OIL--INTERNATIONAL--6.4%
300 Amoco Corp. ........................................................... 21,563
101 British Petroleum, PLC. ............................................... 10,315
400 Chevron Corp. ......................................................... 21,000
200 Exxon Corp. ........................................................... 16,025
200 Mobil Corp. ........................................................... 22,400
100 Royal Dutch Petroleum Co. ............................................. 14,113
200 Texaco, Inc. .......................................................... 15,700
--------
121,116
--------
PAPER--1.8%
400 Fort Howard Corp.*..................................................... 9,000
400 International Paper Co. ............................................... 15,150
200 Mead Corp. ............................................................ 10,450
--------
34,600
--------
POLLUTION CONTROL--1.7%
500 Browning-Ferris Inds., Inc. ........................................... 14,750
600 WMX Technologies, Inc. ................................................ 17,925
--------
32,675
--------
RAILROADS--1.8%
200 Burlington Northern Sante Fe Corp. .................................... 15,600
400 CSX Corp. ............................................................. 18,250
--------
33,850
--------
RESTAURANTS--0.9%
400 McDonald's Corp. ...................................................... 18,050
--------
SOAPS--0.9%
200 Procter & Gamble Co. .................................................. 16,600
--------
SPECIALTY RETAIL SALES--2.0%
300 GAP Inc. .............................................................. 12,600
200 Nautica Enterprises, Inc.*............................................. 8,750
400 Tommy Hilfiger Corp.*.................................................. 16,950
--------
38,300
--------
TELECOMMUNICATIONS--0.9%
500 Worldcom Inc.*......................................................... 17,625
--------
</TABLE>
See notes to financial statements.
F-9
<PAGE> 53
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- --------
<C> <S> <C>
TELECOMMUNICATIONS EQUIPMENT--4.5%
300 Cabletron Systems, Inc.*............................................... $ 24,300
200 Cisco Systems, Inc.*................................................... 14,926
300 DSC Communications Corp.*.............................................. 11,064
700 Ericsson (L.M.) Telephone, Co. Class (B)............................... 13,650
200 Nokia Corp. ADS........................................................ 7,775
400 Octel Communications Corp. ............................................ 12,900
--------
84,615
--------
TELECOMMUNICATIONS SOFTWARE--0.2%
100 Maxis Inc. ............................................................ 3,800
--------
TOBACCO--1.9%
400 Philip Morris Cos., Inc. .............................................. 36,191
--------
Total Common Stocks (cost $1,261,627).................................. 1,671,451
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- --------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--5.3%
$100,000 Federal Home Loan Mortgage Co., 5.53%, due 02/26/96.................... 99,140
----------
Total U.S. Government Agency Obligations (cost $99,140)................ 99,140
----------
Total Investments (cost $1,360,767)............................ 94.5% 1,770,591
Other Assets less Liabilities.................................. 5.5% 102,978
----- ----------
Net Assets..................................................... 100.0% $1,873,569
===== =========
The aggregate cost of securities for federal income tax purposes at December 31, 1995 is
$1,363,432.
The following amounts are based on costs for federal income tax purposes.
Aggregate gross unrealized appreciation................................ $ 427,160
Aggregate gross unrealized depreciation................................ (20,001)
----------
Net unrealized appreciation............................................ $ 407,159
=========
</TABLE>
- ---------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ American Depository Receipts.
Percentages are based on net assets.
See notes to financial statements.
F-10
<PAGE> 54
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Securities, at value (cost $13,736,293) (Note 2)................................ $18,037,659
Cash............................................................................ 72,379
Receivable for fund shares sold................................................. 9
Dividends receivable............................................................ 38,933
-----------
Total assets.......................................................... 18,148,980
-----------
LIABILITIES
Payable for fund shares redeemed................................................ 35,726
Accrued expenses:
Investment advisory fees...................................................... 6,184
Custodian fees................................................................ 1,447
Professional fees............................................................. 10,470
Insurance fees................................................................ 4,118
-----------
Total liabilities..................................................... 57,945
-----------
Net assets...................................................................... $18,091,035
==========
Net assets consist of:
Capital stock--authorized 150,000,000 shares of $.01 par value; outstanding,
922,757 shares............................................................. $ 9,228
Additional paid-in capital.................................................... 13,751,975
Undistributed net investment income........................................... 28,990
Distributions in excess of realized capital gains............................. (524)
Net unrealized appreciation of investments.................................... 4,301,366
-----------
Total net assets...................................................... $18,091,035
==========
Net asset value per share of outstanding capital stock ($18,091,035/922,757
shares)....................................................................... $19.61
==========
</TABLE>
See notes to financial statements.
F-11
<PAGE> 55
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Dividends................................................................... $ 524,805
Interest.................................................................... 178,726
----------
Total investment income................................................ 703,531
----------
Expenses:
Investment advisory fees (Note 3)........................................... 68,915
Custodian fees.............................................................. 9,342
Professional fees........................................................... 10,071
Director fees............................................................... 4,104
Miscellaneous fees.......................................................... 3,648
----------
Total expenses....................................................... 96,080
Expense reduction.................................................... (769)
----------
Net expenses......................................................... 95,311
----------
Net investment income............................................................ 608,220
----------
Realized and unrealized gain on investments (Note 2):
Realized gain from security transactions:
Proceeds from sales.................................................... 3,873,059
Cost of securities sold................................................ 3,508,043
----------
Net realized gain on investments................................................. 365,016
Net increase in unrealized appreciation of investments........................... 3,968,525
----------
Net realized and unrealized gain on investments.................................. 4,333,541
----------
Net increase in net assets resulting from operations............................. $4,941,761
==========
</TABLE>
See notes to financial statements.
F-12
<PAGE> 56
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------ -------------
<S> <C> <C>
From operations:
Net investment income........................................ $ 608,220 $ 2,839,111
Net realized gain on investments (Note 2).................... 365,016 18,303,505
Net increase (decrease) in unrealized appreciation of
investments................................................. 3,968,525 (21,708,034)
------------ ------------
Net increase (decrease) in net assets resulting from operations... 4,941,761 (565,418)
------------ ------------
Dividends and distributions to shareholders from:
Net investment income
($.65 and $.64 per share) (Note 4)......................... (567,903) (628,966)
Net realized gain from investment transactions
($.41 and $.39 per share) (Note 4)......................... (365,016) (377,073)
------------ ------------
Total dividends and distributions................................. (932,919) (1,006,039)
------------ ------------
From capital stock transactions:
Proceeds from issuance of shares
(26,583 and 1,068,394 shares) (Note 5)..................... 489,847 17,693,623
Proceeds from dividends and distributions reinvested
(47,574 and 64,780 shares) (Note 4)........................ 932,919 1,006,039
Net asset value of shares redeemed
(195,103 and 9,301,832 shares)............................. (3,545,498) (152,253,591)
------------ ------------
Net decrease in net assets resulting from capital stock
transactions.................................................... (2,122,732) (133,553,929)
------------ ------------
Net increase (decrease) in net assets............................. 1,886,110 (135,125,386)
Net assets beginning of year...................................... 16,204,925 151,330,311
------------ ------------
Net assets end of year (including undistributed net investment
income of $28,990 and $0, respectively)......................... $ 18,091,035 $ 16,204,925
============ ============
</TABLE>
See notes to financial statements.
F-13
<PAGE> 57
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- -----------
<C> <S> <C>
COMMON STOCKS--94.7%
AEROSPACE/DEFENSE--2.1%
3,000 Northrop Grumman Corp. ............................................... $ 192,000
2,000 United Technologies Corp. ............................................ 189,750
----------
381,750
----------
AUTOMOBILES--1.4%
2,500 Chrysler Corp. ....................................................... 138,438
4,000 Ford Motor, Co. ...................................................... 116,000
----------
254,438
----------
AUTO PARTS--1.3%
8,000 Dana Corp. ........................................................... 234,000
----------
BANKS--2.7%
3,000 Bank of New York Co., Inc. ........................................... 146,250
2,000 Bankamerica Corp. .................................................... 129,500
2,000 Chase Manhattan Corp. ................................................ 121,250
1,500 Chemical Banking Corp. ............................................... 88,125
----------
485,125
----------
BANK/REGIONAL--3.0%
3,500 Banc One, Corp. ...................................................... 132,125
1,500 First Interstate Bancorp.............................................. 204,750
2,500 First Union Corp. .................................................... 139,063
1,000 Nationsbank Corp. .................................................... 69,625
----------
545,563
----------
CHEMICALS--3.3%
700 Dow Chemical Co. ..................................................... 49,262
2,500 duPont (E.I.) de Nemours & Co. ....................................... 174,688
2,000 Monsanto Co. ......................................................... 245,000
500 Olin Corp. ........................................................... 37,125
3,000 Witco Corp. .......................................................... 87,750
----------
593,825
----------
</TABLE>
See notes to financial statements.
F-14
<PAGE> 58
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<C> <S> <C>
CONGLOMERATES--4.2%
3,000 Gatx Corp. ........................................................... $ 145,875
3,000 General Signal Corp. ................................................. 97,125
3,000 Harsco Corp. ......................................................... 174,375
8,000 Ogden Corp. .......................................................... 171,000
2,500 Textron Inc. ......................................................... 168,750
----------
757,125
----------
COSMETICS--1.2%
3,000 Avon Products, Inc. .................................................. 226,125
----------
DRUGS--10.9%
2,500 American Home Products Corp. ......................................... 242,500
5,000 Baxter International, Inc. ........................................... 209,375
2,000 Bristol Myers Squibb Co............................................... 171,750
4,000 Merck and Co., Inc. .................................................. 263,000
4,000 Pfizer Inc. .......................................................... 252,000
5,000 Pharmacia & Upjohn Inc. .............................................. 193,750
4,000 Schering-Plough Corp. ................................................ 219,000
4,000 Smithkline Beecham P.L.C. ............................................ 222,000
2,000 Warner Lambert Co..................................................... 194,250
----------
1,967,625
----------
ELECTRICAL EQUIPMENT--3.5%
3,000 Emerson Electric Co................................................... 245,250
4,500 General Electric, Co.................................................. 324,000
1,000 Hubbel, Inc. ......................................................... 65,750
----------
635,000
----------
ELECTRONICS--3.2%
2,000 AMP, Inc. ............................................................ 76,750
3,000 Harris Corp. ......................................................... 163,875
3,000 Honeywell Inc. ....................................................... 145,875
2,500 Thomas & Betts, Corp. ................................................ 184,375
----------
570,875
----------
FOOD--0.3%
1,000 General Mills, Inc. .................................................. 57,750
----------
FOREST PRODUCTS--0.8%
3,500 Weyerhaeuser Co....................................................... 151,375
----------
HOSPITAL MANAGEMENT--1.0%
4,000 U.S. Health Care Inc. ................................................ 186,000
----------
</TABLE>
See notes to financial statements.
F-15
<PAGE> 59
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<C> <S> <C>
INSURANCE--4.4%
3,000 Aetna Life & Casualty Co.............................................. $ 207,750
4,000 Allstate Corp. ....................................................... 164,500
2,000 CIGNA Corp. .......................................................... 206,500
4,000 Lincoln National Corp. ............................................... 215,000
----------
793,750
----------
MACHINERY--3.2%
2,500 Cooper Industries, Inc. .............................................. 91,875
6,000 Deere & Co............................................................ 211,500
4,000 Goulds Pumps, Inc. ................................................... 100,000
1,000 Hardinge Brothers, Inc. .............................................. 26,000
3,800 Timken Co............................................................. 145,350
----------
574,725
----------
METALS--1.8%
4,000 Carpenter Technology Corp. ........................................... 164,500
6,000 Freeport McMoRan Copper and Gold, Inc. ............................... 168,000
----------
332,500
----------
MISCELLANEOUS--2.9%
3,500 Grace (W.R) & Co. .................................................... 206,938
2,500 Minnesota Mining & Manufacturing Co. ................................. 165,625
3,000 Tenneco, Inc. ........................................................ 148,875
----------
521,438
----------
MISCELLANEOUS FINANCE--2.5%
5,000 American Express Co. ................................................. 206,875
2,000 Federal National Mortgage Assn. ...................................... 248,250
----------
455,125
----------
OFFICE & BUSINESS EQUIPMENT--2.3%
3,000 Pitney-Bowes, Inc. ................................................... 141,000
2,000 Xerox Corp. .......................................................... 274,000
----------
415,000
----------
OIL--DOMESTIC--2.0%
1,800 Amoco, Corp. ......................................................... 129,375
1,500 Atlantic Richfield Co. ............................................... 166,125
3,000 Occidental Petroleum Corp. ........................................... 64,125
----------
359,625
----------
</TABLE>
See notes to financial statements.
F-16
<PAGE> 60
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<C> <S> <C>
OIL--INTERNATIONAL--5.8%
1,000 British Petroleum..................................................... $ 102,125
4,000 Chevron, Corp. ....................................................... 210,000
2,500 Exxon Corp. .......................................................... 200,313
1,500 Mobil Corp. .......................................................... 168,000
1,500 Royal Dutch Petroleum Co. ............................................ 211,687
2,000 Texaco, Inc. ......................................................... 157,000
----------
1,049,125
----------
OIL-SERVICE & DRILLING--2.4%
3,000 Dresser Industries, Inc. ............................................. 73,125
2,000 Halliburton Co. ...................................................... 101,250
2,000 McDermott International, Inc. ........................................ 44,000
5,000 Williams (The) Companies Inc. ........................................ 219,375
----------
437,750
----------
PAPER--1.5%
3,500 Federal Paper Board Co., Inc. ........................................ 181,563
2,000 Union Camp Corp. ..................................................... 95,250
----------
276,813
----------
PHOTOGRAPHY--1.1%
3,000 Eastman Kodak Co. .................................................... 201,000
----------
PUBLISHING--3.7%
3,000 Dun & Bradstreet Corporation.......................................... 194,250
3,000 McGraw-Hill Companies Inc. ........................................... 261,375
4,000 Readers Digest Assn. Inc. ............................................ 205,000
----------
660,625
----------
RAILROADS--1.9%
2,000 Conrail Inc. ......................................................... 140,000
2,500 Norfolk Southern Corp. ............................................... 198,438
----------
338,438
----------
</TABLE>
See notes to financial statements.
F-17
<PAGE> 61
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<C> <S> <C>
REAL ESTATE--3.4%
2,000 Avalon Properties Inc. ............................................... $ 43,000
2,000 Bay Apartment Community, Inc. ........................................ 48,500
2,000 Developers Diversified Realty......................................... 60,000
2,000 Equity Residential Properties Trust................................... 61,250
3,200 Felcor Suite Hotels Inc. ............................................. 88,800
5,500 Healthcare Property Investors, Inc. .................................. 193,188
2,000 Healthcare Trust...................................................... 46,000
2,000 Irvine Apartment Communities, Inc. ................................... 38,500
2,000 Redwood Trust Inc. ................................................... 36,500
----------
615,738
----------
RETAIL SALES--0.9%
1,000 Penney (J.C.) Co., Inc. .............................................. 47,625
2,000 May Department Stores Co. ............................................ 84,500
1,000 Sears Roebuck & Co. .................................................. 39,000
----------
171,125
----------
SAVINGS & LOANS--2.2%
7,000 Ahmanson (H.F.) & Co. ................................................ 185,500
8,000 Great Western Financial Corp. ........................................ 204,000
----------
389,500
----------
TOBACCO--2.2%
3,000 American Brands Inc. ................................................. 133,875
3,000 Philip Morris Companies, Inc. ........................................ 271,500
----------
405,375
----------
UTILITIES--ELECTRIC--2.9%
3,000 American Electric Power Co. Inc. ..................................... 121,500
4,000 Carolina Power & Light Co. ........................................... 138,000
3,000 FPL Group, Inc. ...................................................... 139,125
5,000 Southern Co. ......................................................... 123,125
----------
521,750
----------
</TABLE>
See notes to financial statements.
F-18
<PAGE> 62
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- -----------
<C> <S> <C>
UTILITIES--TELEPHONE--8.7%
3,000 Ameritech Corp. ...................................................... $ 177,000
2,500 Bell Atlantic Corp. .................................................. 167,185
4,000 Bellsouth Corp. ...................................................... 174,000
4,000 GTE Corp. ............................................................ 176,000
2,500 NYNEX Corp. .......................................................... 135,000
5,000 Pacific Telesis Group................................................. 168,125
3,000 SBC Communications Inc. .............................................. 172,500
4,000 Sprint, Corp. ........................................................ 159,500
5,000 U.S. West Inc. ....................................................... 178,750
3,500 U.S. West Media Group................................................. 66,500
----------
1,574,560
----------
Total Common Stocks (cost $12,839,172)................................ 17,140,538
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- --------
<C> <S> <C> <C>
COMMERCIAL PAPER--4.4%
$400,000 Chevron Oil Finance Co., 5.75%, due 01/12/96.......................... 399,297
400,000 Household Finance Corp., 5.77%, due 01/26/96.......................... 398,397
-----------
Total Commercial Paper (cost $797,694)................................ 797,694
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--0.6%
100,000 Federal National Mortgage Assn., 5.43%, due 02/08/96.................. 99,427
-----------
Total U.S. Government Agency Obligations (cost $99,427)............... 99,427
-----------
Total Investments (cost $13,736,293)...................... 99.7% 18,037,659
Other Assets less Liabilities............................. 0.3% 53,376
----- -----------
Net Assets................................................ 100.0% $18,091,035
===== ==========
</TABLE>
The aggregate cost of securities for federal income tax purpose at December 31,
1995 is $13,741,323.
<TABLE>
<S> <C>
The following amounts are based on costs for federal income tax purposes:
Aggregate gross unrealized appreciation................................ $4,359,024
Aggregate gross unrealized depreciation................................ (62,688)
----------
Net unrealized appreciation............................................ $4,296,336
==========
</TABLE>
- ---------------
Percentages are based on net assets.
See notes to financial statements.
F-19
<PAGE> 63
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Securities, at value (cost $35,886,047) (Note 2)................................ $36,698,721
Cash............................................................................ 298,188
Interest receivable............................................................. 483,986
Receivable for fund shares sold................................................. 72,921
-----------
Total assets.......................................................... 37,553,816
-----------
LIABILITIES
Payable for fund shares redeemed................................................ 2,810
Accrued expenses:
Investment advisory fees................................................... 12,500
Custodian fees............................................................. 597
Professional fees.......................................................... 13,241
Insurance fees............................................................. 4,835
-----------
Total liabilities..................................................... 33,983
-----------
Net assets...................................................................... $37,519,833
===========
Net assets consist of:
Capital stock--authorized 150,000,000 shares of $.01 par value;
outstanding, 3,548,486 shares............................................. $ 35,485
Additional paid-in capital................................................. 36,705,742
Accumulated net realized loss on investments............................... (34,068)
Net unrealized appreciation of investments................................. 812,674
-----------
Total net assets...................................................... $37,519,833
===========
Net asset value per share of outstanding capital stock ($37,519,833/3,548,486
shares)....................................................................... $10.57
===========
</TABLE>
See notes to financial statements.
F-20
<PAGE> 64
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Interest.................................................................... $2,258,903
----------
Expenses:
Investment advisory fees (Note 3)........................................... 136,962
Custodian fees.............................................................. 5,555
Professional fees........................................................... 13,560
Director fees............................................................... 8,107
Miscellaneous fees.......................................................... 4,935
----------
Total expenses......................................................... 169,119
Expense reduction...................................................... (1,253)
----------
Net expenses........................................................... 167,866
----------
Net investment income............................................................ 2,091,037
----------
Realized and unrealized gain (loss) on investments (Note 2):
Realized gain from security transactions:
Proceeds from sales.................................................... 9,615,852
Cost of securities sold................................................ 9,616,195
----------
Net realized loss on investments................................................. (343)
Net increase in unrealized appreciation of investments........................... 2,636,279
----------
Net realized and unrealized gain on investments.................................. 2,635,936
----------
Net increase in net assets resulting from operations............................. $4,726,973
==========
</TABLE>
See notes to financial statements.
F-21
<PAGE> 65
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
From operations:
Net investment income.......................................... $ 2,091,037 $ 1,874,728
Net realized losses on investments (Note 2).................... (343) (33,725)
Net increase (decrease) in unrealized appreciation of
investments................................................... 2,636,279 (2,355,107)
----------- -----------
Net increase (decrease) in net assets resulting from operations..... 4,726,973 (514,104)
----------- -----------
Dividends to shareholders from:
Net investment income ($.63 and $.60 per share) (Note 4)....... (2,091,037) (1,874,852)
----------- -----------
Total dividends........................................... (2,091,037) (1,874,852)
----------- -----------
From capital stock transactions:
Proceeds from issuance of shares
(910,082 and 1,275,956 shares) (Note 5)...................... 9,732,637 13,233,728
Proceeds from dividends reinvested
(197,828 and 192,293 shares) (Note 4)........................ 2,091,037 1,874,852
Net asset value of shares redeemed
(871,850 and 1,136,700 shares)............................... (9,223,470) (11,762,099)
----------- -----------
Net increase in net assets resulting from capital stock
transactions...................................................... 2,600,204 3,346,481
----------- -----------
Net increase in net assets.......................................... 5,236,140 957,525
Net assets beginning of year........................................ 32,283,693 31,326,168
----------- -----------
Net assets end of year.............................................. $ 37,519,833 $ 32,283,693
=========== ===========
</TABLE>
See notes to financial statements.
F-22
<PAGE> 66
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- -----------
<C> <S> <C>
CORPORATE BONDS AND NOTES--33.3%
$1,000,000 Associates Corp. of North America, 7.50%, due 05/15/99.............. $ 1,054,420
1,000,000 Chase Manhattan Corp., 6.75%, due 08/15/08.......................... 1,027,330
1,000,000 Commonwealth Edison Co., 7.00%, due 07/01/05........................ 1,037,140
1,000,000 Connecticut Light & Power Co., 7.25%, due 07/01/99.................. 1,027,530
1,000,000 First Chicago Corp., 9.00%, due 06/15/99............................ 1,100,360
1,000,000 First Data Corp., 6.75%, due 07/15/05............................... 1,041,080
1,000,000 General Electric Capital Corp., 8.65%, due 05/01/18................. 1,009,460
1,000,000 Hertz Corp., senior sub., 10.125%, due 03/01/97..................... 1,050,620
1,000,000 Laidlaw Inc., 7.70%, due 08/15/02................................... 1,074,790
1,000,000 Potomac Edison Co., 8.00%, due 06/01/06............................. 1,053,620
1,000,000 Provident Bank, 6.375%, due 01/15/04................................ 994,960
1,000,000 Standard Credit Card Master Trust Class (A), 6.55%, due 10/07/07.... 1,031,280
-----------
Total Corporate Bonds and Notes (cost $12,052,094).................. 12,502,590
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--9.3%
100,000 Federal National Mortgage Assn., 5.57%, due 01/03/96................ 99,969
150,000 Federal National Mortgage Assn., 5.59%, due 01/03/96................ 149,953
175,000 Federal National Mortgage Assn., 5.43%, due 02/08/96................ 173,997
2,000,000 Federal Home Loan Mortgage Corp. REMIC, Series 1574, 6.50%, due
02/15/21............................................................ 2,024,560
1,000,000 Federal National Mortgage Assn. REMIC, Trust 94-75, 7.00%, due
01/25/03............................................................ 1,029,830
-----------
Total U.S. Government Agency Obligations (cost $3,371,755).......... 3,478,309
-----------
U.S. TREASURY OBLIGATIONS--30.4%
1,000,000 U.S. Treasury Bond, 7.125%, due 02/15/23............................ 1,142,180
2,000,000 U.S. Treasury Notes, 6.375%, due 08/15/02........................... 2,101,240
2,000,000 U.S. Treasury Notes, 4.750%, due 09/30/98........................... 1,975,000
1,000,000 U.S. Treasury Notes, 4.750%, due 10/31/98........................... 986,560
2,000,000 U.S. Treasury Notes, 6.875%, due 07/31/99........................... 2,099,360
1,000,000 U.S. Treasury Notes, 7.125%, due 02/29/00........................... 1,065,000
2,000,000 U.S. Treasury Notes, 6.125%, due 05/31/97........................... 2,025,000
-----------
Total U.S. Treasury Obligations (cost $11,138,716).................. 11,394,340
-----------
</TABLE>
See notes to financial statements.
F-23
<PAGE> 67
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- -----------
<C> <S> <C> <C>
COMMERCIAL PAPER--24.8%
$1,400,000 Canadian Wheat Board, 5.61%, due 03/11/96........................... $ 1,384,729
1,685,000 Chevron Oil Finance Co., 5.75%, due 01/12/96........................ 1,682,040
1,250,000 CIT Group Holdings, Inc., 5.80%, due 01/31/96....................... 1,243,959
200,000 CIT Group Holdings, Inc., 5.70%, due 02/09/96....................... 198,765
1,200,000 duPont (E.I.) de Nemours & Co., 5.64%, due 01/26/96................. 1,195,300
1,000,000 General Motors Acceptance Corp., 5.70%, due 01/09/96................ 998,733
1,000,000 Goldman Sachs Group, L.P., 5.68%, due 01/12/96...................... 998,265
1,200,000 Household Finance Corp., 5.75%, due 01/12/96........................ 1,197,892
425,000 Philip Morris Companies, Inc., 5.65%, due 01/19/96.................. 423,799
-----------
Total Commercial Paper (cost $9,323,482)............................ 9,323,482
-----------
Total Investments (cost $35,886,047)....................... 97.8% 36,698,721
Other Assets less Liabilities.............................. 2.2% 821,112
----- -----------
Net Assets................................................. 100.0% $37,519,833
===== ==========
</TABLE>
The aggregate cost of securities for federal income tax purposes at December 31,
1995, is $35,886,047.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation.................................... $848,705
Aggregate gross unrealized depreciation.................................... (36,031)
--------
Net unrealized appreciation................................................ $812,674
========
</TABLE>
- ---------------
Percentages are based on net assets.
See notes to financial statements.
F-24
<PAGE> 68
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at value (cost $54,354,765) (Note 2)................................ $60,645,547
Cash............................................................................ 260,324
Interest receivable............................................................. 1,063,994
Receivable for fund shares sold................................................. 159,730
-----------
Total assets.......................................................... 62,129,595
-----------
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES
<S> <C>
Payable for fund shares redeemed................................................ 68,194
Accrued expenses:
Investment advisory fees................................................... 20,468
Custodian fees............................................................. 892
Professional fees.......................................................... 15,168
Insurance fees............................................................. 6,984
-----------
Total liabilities..................................................... 111,706
-----------
Net assets...................................................................... $62,017,889
==========
Net assets consist of:
Capital stock--authorized 150,000,000 shares of $.01 par value;
outstanding, 4,813,370 shares............................................. $ 48,134
Additional paid-in capital................................................. 56,546,147
Accumulated net realized loss on investments............................... (867,174)
Net unrealized appreciation of investments................................. 6,290,782
-----------
Total net assets...................................................... $62,017,889
==========
Net asset value per share of outstanding capital stock ($62,017,889/4,813,370
shares)....................................................................... $ 12.88
==========
</TABLE>
See notes to financial statements.
F-25
<PAGE> 69
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Interest................................................................... $ 3,585,165
----------
Expenses:
Investment advisory fees (Note 3).......................................... 202,615
Custodian fees............................................................. 6,543
Professional fees.......................................................... 16,070
Director fees.............................................................. 11,442
Miscellaneous fees......................................................... 7,087
----------
Total expenses........................................................ 243,757
Expense reduction..................................................... (1,061)
----------
Net expenses.......................................................... 242,696
----------
Net investment income........................................................... 3,342,469
----------
Realized and unrealized gain on investments (Note 2):
Realized gain from security transactions
Proceeds from sales................................................... 38,258,807
Cost of securities sold............................................... 37,237,994
----------
Net realized gain on investments................................................ 1,020,813
Net increase in unrealized appreciation of investments.......................... 8,936,819
----------
Net realized and unrealized gain on investments................................. 9,957,632
----------
Net increase in net assets resulting from operations............................ $13,300,101
==========
</TABLE>
See notes to financial statements.
F-26
<PAGE> 70
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
From operations:
Net investment income......................................... $ 3,342,469 $ 3,493,194
Net realized gain (loss) on investments (Note 2).............. 1,020,813 (2,067,863)
Net increase (decrease) in unrealized appreciation of
investments.................................................. 8,936,819 (5,494,123)
------------ ------------
Net increase (decrease) in net assets resulting from operations.... 13,300,101 (4,068,792)
------------ ------------
Dividends to shareholders from:
Net investment income ($.74 and $.84 per share) (Note 4)...... (3,342,469) (3,261,315)
------------ ------------
From capital stock transactions:
Proceeds from the issuance of shares
(1,481,319 and 2,098,280 shares) (Note 5)................... 18,197,721 24,365,436
Proceeds from dividends and distributions reinvested
(259,508 and 311,492 shares) (Note 4)....................... 3,342,469 3,261,315
Net asset value of shares redeemed
(1,131,582 and 3,436,005 shares)............................ (13,492,262) (39,328,934)
------------ ------------
Net increase (decrease) in net assets resulting from capital stock
transactions..................................................... 8,047,928 (11,702,183)
------------ ------------
Net increase (decrease) in net assets.............................. 18,005,560 (19,032,290)
Net assets beginning of year....................................... 44,012,329 63,044,619
------------ ------------
Net assets end of year............................................. $ 62,017,889 $ 44,012,329
============ ============
</TABLE>
See notes to financial statements.
F-27
<PAGE> 71
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
----------- -----------
<C> <S> <C>
CORPORATE BONDS AND NOTES--46.0%
$ 1,000,000 BHP Finance USA Ltd., 6.75%, due 11/01/13........................ $ 1,000,900
1,000,000 Boeing Co., 8.625%, due 11/15/31................................. 1,280,840
1,000,000 Carolina Telephone & Telegraph, 6.75%, due 08/15/13.............. 1,002,730
1,000,000 Chase Manhattan Corp., 6.75%, due 08/15/08....................... 1,027,330
1,000,000 ColumbiaHCA Healthcare Corp., 7.69%, due 06/15/25................ 1,103,370
1,000,000 Commonwealth Edison Co., 7.00%, due 07/01/05..................... 1,037,140
2,000,000 Dow Chemical BV, 9.20%, due 06/01/10............................. 2,439,380
1,000,000 First Data Corp., 6.75%, due 07/15/05............................ 1,041,080
1,000,000 General Electric Capital Corp., 8.50%, due 07/24/08.............. 1,195,640
1,000,000 General Motors Corp., 7.00%, due 06/15/03........................ 1,043,430
1,000,000 Hydro-Quebec, 8.50%, due 12/01/29................................ 1,172,890
1,000,000 International Bank for Reconstruction & Development, 8.875%, due
03/01/26....................................................... 1,318,750
2,000,000 James River Corp., 7.75%, due 11/15/23........................... 2,157,700
1,000,000 Laidlaw Inc., 7.875%, due 04/15/05............................... 1,100,480
1,000,000 Legard SA, 8.50%, due 02/15/25................................... 1,199,720
1,000,000 National City Bank of Cleveland, 7.25%, due 07/15/10............. 1,063,990
1,000,000 Provident Bank of Cincinnati, 6.375%, due 01/15/04............... 994,960
1,000,000 Rohm & Haas Co., 9.50%, due 04/01/21............................. 1,203,010
1,000,000 Seagram (J.E.) & Sons Inc., 9.65%, due 08/15/18.................. 1,348,410
2,000,000 Swiss Bank Corp., 7.50%, due 07/15/25............................ 2,171,680
1,000,000 Texaco Capital, Inc., 9.75%, due 03/15/20........................ 1,366,100
1,000,000 Weyerhaeuser Co., 8.50%, due 01/15/25............................ 1,235,440
-----------
Total Corporate Bonds and Notes (cost $25,606,735)............... 28,504,970
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.6%
1,000,000 Federal National Mortgage Assn., 5.43%, due 02/08/96............. 994,268
1,000,000 Federal Home Loan Mortgage Corp., 6.85%, due 01/15/22............ 1,020,290
2,000,000 Federal National Mortgage Assn., REMIC, Trust 92-198, 7.50%, due
09/25/22....................................................... 2,086,720
-----------
Total U.S. Government Agency Obligations (cost $3,743,992)....... 4,101,278
-----------
</TABLE>
See notes to financial statements.
F-28
<PAGE> 72
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
----------- -----------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS--43.4%
$ 500,000 U.S. Treasury Notes, 7.25%, due 02/15/98......................... $ 519,840
500,000 U.S. Treasury Notes, 6.875%, due 07/31/99........................ 524,840
500,000 U.S. Treasury Notes, 7.75%, due 12/31/99......................... 542,810
1,000,000 U.S. Treasury Notes, 7.50%, due 11/15/01......................... 1,102,180
1,000,000 U.S. Treasury Notes, 6.50%, due 08/15/05......................... 1,065,310
12,900,000 U.S. Treasury Bonds, 0.00%, due 05/15/18......................... 3,214,293
3,600,000 U.S. Treasury Bonds, 9.00%, due 11/15/18......................... 4,906,116
2,000,000 U.S. Treasury Bonds, 8.75%, due 08/15/20......................... 2,683,120
3,500,000 U.S. Treasury Bonds, 7.875%, due 02/15/21........................ 4,308,255
3,000,000 U.S. Treasury Bonds, 8.125%, due 08/15/21........................ 3,800,610
3,500,000 U.S. Treasury Bonds, 7.625%, due 02/15/25........................ 4,276,545
-----------
Total U.S. Treasury Obligations (cost $23,908,658)............... 26,943,919
-----------
COMMERCIAL PAPER--1.8%
150,000 Chevron Oil Finance Co., 5.75%, due 01/02/96..................... 149,737
100,000 CIT Group Holdings Inc., 5.70%, due 02/09/96..................... 99,383
100,000 CIT Group Holdings Inc., 5.70%, due 03/14/96..................... 98,877
100,000 General Electric Capital Corp., 5.63%, due 02/14/96.............. 99,312
300,000 Household Finance Corp., 5.75%, due 01/12/96..................... 299,473
350,000 Household Finance Corp., 5.77%, due 01/26/96..................... 348,598
-----------
Total Commercial Paper (cost $1,095,380)......................... 1,095,380
-----------
Total Investments (cost $54,354,765)..................... 97.8% 60,645,547
Other Assets less Liabilities............................ 2.2% 1,372,342
----- -----------
Net Assets............................................... 100.0% 62,017,889
===== ==========
The aggregate cost of securities for federal income tax purposes at December 31, 1995
is $54,354,765.
The following amounts are based on costs for federal income tax purposes:
Aggregate gross unrealized appreciation......................... $ 6,290,782
Aggregate gross unrealized depreciation......................... 0
-----------
Net unrealized appreciation..................................... $ 6,290,782
==========
</TABLE>
- ---------------
Percentages are based on net assets.
See notes to financial statements.
F-29
<PAGE> 73
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Securities, at value (cost $2,640,222) (Note 2).................................. $3,263,357
Cash............................................................................. 13,491
Receivable for fund shares sold.................................................. 65
Interest receivable.............................................................. 4,793
Dividends receivable............................................................. 2,963
----------
Total assets........................................................... 3,284,669
----------
LIABILITIES
Payable for fund shares redeemed................................................. 417
Accrued expenses:
Investment advisory fees.................................................... 1,124
Custodian fees.............................................................. 873
Professional fees........................................................... 9,701
Insurance fees.............................................................. 479
----------
Total liabilities...................................................... 12,594
----------
Net assets....................................................................... $3,272,075
=========
Net assets consist of:
Capital stock--authorized 150,000,000 shares of $.01 par value; outstanding,
208,182 shares............................................................ $ 2,082
Additional paid-in capital.................................................. 2,651,371
Distribution in excess of net realized gain on investments.................. (4,513)
Net unrealized appreciation of investments.................................. 623,135
----------
Total net assets....................................................... $3,272,075
=========
Net asset value per share of outstanding capital stock ($3,272,075/208,182
shares)........................................................................ $ 15.72
==========
</TABLE>
See notes to financial statements.
F-30
<PAGE> 74
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Interest..................................................................... $ 75,744
Dividends.................................................................... 36,758
--------
Total investment income................................................. 112,502
--------
Expenses:
Investment advisory fees (Note 3)............................................ 12,544
Custodian fees............................................................... 6,680
Professional fees............................................................ 9,054
Directors fees............................................................... 708
Miscellaneous fees........................................................... 637
--------
Total expenses.......................................................... 29,623
Expense reduction....................................................... (1,055)
--------
Net expenses............................................................ 28,568
--------
Net investment income............................................................. 83,934
--------
Realized and unrealized gain on investments (Note 2):
Realized gain from security transactions
Proceeds from sales..................................................... 665,125
Cost of securities sold................................................. 580,491
--------
Net realized gain on investments.................................................. 84,634
Net increase in unrealized appreciation of investments............................ 557,722
--------
Net realized and unrealized gain on investments................................... 642,356
--------
Net increase in net assets resulting from operations.............................. $726,290
========
</TABLE>
See notes to financial statements.
F-31
<PAGE> 75
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
From operations:
Net investment income....................................... $ 83,934 $ 590,543
Net realized gains on investments (Note 2).................. 84,634 2,121,738
Net increase (decrease) in unrealized appreciation of
investments................................................ 557,722 (3,761,408)
---------- -------------
Net increase (decrease) in net assets resulting from
operations..................................................... 726,290 (1,049,127)
---------- -------------
Dividends and distributions to shareholders from:
Net investment income
($.43 and $.38 per share) (Note 4)........................ (83,934) (80,596)
Net realized gain from investment transactions
($.43 and $.09 per share) (Note 4)........................ (84,634) (18,004)
Distribution in excess of realized capital gain
($.02 and $.00* per share) (Note 4)....................... (4,489) (24)
---------- -------------
Total dividends and distributions...................... (173,057) (98,624)
---------- -------------
From capital stock transactions:
Proceeds from the issuance of shares
(16,862 and 747,498 shares) (Note 5)...................... 255,820 10,047,407
Proceeds from dividends and distributions
(11,009 and 7,505 shares) (Note 4)........................ 173,057 98,624
Net asset value of shares redeemed
(37,322 and 3,067,427 shares)............................. (570,735) (40,214,078)
---------- -------------
Net decrease in net assets resulting from capital stock
transactions................................................... (141,858) (30,068,047)
---------- -------------
Net increase (decrease) in net assets............................ 411,375 (31,215,798)
Net assets beginning of year..................................... 2,860,700 34,076,498
---------- -------------
Net assets end of year........................................... $3,272,075 $ 2,860,700
========== =============
</TABLE>
- ---------------
* Less than $.01 per share.
See notes to financial statements.
F-32
<PAGE> 76
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ----------
<C> <S> <C>
U.S. TREASURY OBLIGATION--17.0%
$500,000 U.S. Treasury Note, 7.50%, due 05/15/02 (cost $521,841)............ $ 554,685
----------
U.S. GOVERNMENT AGENCY OBLIGATION--10.6%
Federal Home Loan Mortgage Corp. 5.63%, due 01/16/96 (cost
350,000 $349,179).......................................................... 349,179
----------
<CAPTION>
SHARES
- ----------
<C> <S> <C>
COMMON STOCKS--72.1%
AEROSPACE/DEFENSE--0.7%
300 Boeing Co. ........................................................ 23,513
----------
AIR TRANSPORTATION--2.9%
400 AMR Corp.*......................................................... 29,700
400 Delta Airlines Inc. ............................................... 29,550
200 UAL Corp. ......................................................... 35,700
----------
94,950
----------
AUTOMOBILES--2.0%
500 Chrysler Corp. .................................................... 27,688
700 Ford Motor Co. .................................................... 20,300
300 General Motors Corp. Class (E)..................................... 15,863
----------
63,851
----------
BANKS/MAJOR--2.2%
400 Bankamerica Corp. ................................................. 25,900
700 Citicorp........................................................... 47,075
----------
72,975
----------
BANKS/REGIONAL--1.8%
500 Banc One Corp. .................................................... 18,875
300 First Interstate Bancorp........................................... 40,950
----------
59,825
----------
BIOTECHNOLOGIES--1.1%
600 Amgen Inc.*........................................................ 35,625
----------
CABLE TELEVISION--1.0%
700 Comcast Corp. Class (A)............................................ 12,731
175 Tele Communications Inc./Liberty Media Group, Series (A)*.......... 4,703
700 Tele Communications Inc./TCI Group, Series (A)*.................... 13,913
----------
31,347
----------
</TABLE>
See notes to financial statements.
F-33
<PAGE> 77
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<C> <S> <C>
CHEMICALS--4.1%
200 Dow Chemical Co. .................................................. $ 14,075
400 duPont (E.I.) de Nemours & Co. .................................... 27,950
1,000 Hercules Inc. ..................................................... 56,375
300 Monsanto Co. ...................................................... 36,750
----------
135,150
----------
COMMUNICATION SERVICES--0.5%
600 Airtouch Communications Inc.*...................................... 16,950
----------
COSMETICS--0.5%
300 Gillette Co. ...................................................... 15,638
----------
DRUGS--7.2%
200 Bristol Myers Squibb Co. .......................................... 17,175
800 Merck & Co., Inc. ................................................. 52,600
600 Pfizer Inc. ....................................................... 37,800
600 Pharmacia & Upjohn Inc. ........................................... 23,250
600 Schering-Plough Corp. ............................................. 32,850
800 Smithkline Beecham PLC ADR+........................................ 44,400
300 Warner-Lambert Co. ................................................ 29,138
----------
237,213
----------
ELECTRICAL EQUIPMENT--2.3%
400 Emerson Electric Co. .............................................. 32,700
600 General Electric Co. .............................................. 43,200
----------
75,900
----------
ELECTRONICS--4.5%
800 AMP, Inc. ......................................................... 30,700
400 Applied Materials, Inc.*........................................... 15,750
300 Hewlett-Packard Co. ............................................... 25,125
300 Intel Corp. ....................................................... 17,025
400 Motorola, Inc. .................................................... 22,800
700 Silicon Graphics, Inc.*............................................ 19,250
300 Texas Instruments, Inc. ........................................... 15,525
----------
146,175
----------
ENTERTAINMENT--3.0%
400 Disney (Walt) Co. ................................................. 23,600
1,500 News Corp., ADR+................................................... 32,063
500 Time Warner, Inc. ................................................. 18,938
500 Viacom, Inc.* Class (B)............................................ 23,688
----------
98,289
----------
</TABLE>
See notes to financial statements.
F-34
<PAGE> 78
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<C> <S> <C>
FINANCIAL SERVICES--1.9%
300 Federal Home Loan Mortgage Corp. .................................. $ 25,050
300 Federal National Mortgage Assn. ................................... 37,238
----------
62,288
----------
FOODS--0.5%
300 General Mills, Inc. ............................................... 17,325
----------
FOREST PRODUCTS--0.4%
200 Georgia Pacific Corp. ............................................. 13,725
----------
HOSPITAL MANAGEMENT--2.8%
700 Columbia/HCA Healthcare Corp. ..................................... 35,525
200 Oxford Health Plans, Inc.*......................................... 14,775
200 United Healthcare Corp. ........................................... 13,100
600 U.S. Healthcare Inc. .............................................. 27,900
----------
91,300
----------
HOSPITAL SUPPLIES--1.0%
400 Johnson & Johnson.................................................. 34,250
----------
INSURANCE--2.2%
450 American International Group, Inc. ................................ 41,625
200 General Re Corp. .................................................. 31,000
----------
72,625
----------
MACHINERY--3.2%
500 Case Corp. ........................................................ 22,875
400 Caterpillar, Inc. ................................................. 23,500
900 Deere & Co. ....................................................... 31,725
800 Ingersoll-Rand Co. ................................................ 28,100
----------
106,200
----------
MACHINERY & CONSTRUCTION--1.9%
500 Fluor, Corp. ...................................................... 33,000
700 Foster Wheeler Corp. .............................................. 29,750
----------
62,750
----------
METALS--1.6%
1,000 Aluminum Company of America........................................ 52,875
----------
</TABLE>
See notes to financial statements.
F-35
<PAGE> 79
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<C> <S> <C>
OFFICE & BUSINESS EQUIPMENT--2.7%
300 Compaq Computer Corp.*............................................. $ 14,400
400 General Motors Corp. Class (E)..................................... 20,800
200 International Business Machines Corp. ............................. 18,350
200 Microsoft, Corp.*.................................................. 17,550
400 Oracle Corp.*...................................................... 16,950
----------
88,050
----------
OIL--DOMESTIC--1.8%
400 AMOCO, Corp. ...................................................... 28,750
200 Atlantic Richfield Co. ............................................ 22,150
300 Union Pacific Resources Group Inc. ................................ 7,613
----------
58,513
----------
OIL--INTERNATIONAL--4.8%
204 British Petroleum PLC ADR+......................................... 20,834
500 Chevron, Corp. .................................................... 26,250
300 Exxon Corp. ....................................................... 24,038
300 Mobil Corp. ....................................................... 33,600
200 Royal Dutch Petroleum Co. ......................................... 28,225
300 Texaco, Inc. ...................................................... 23,550
----------
156,497
----------
PAPER--1.1%
600 Fort Howard Corp.*................................................. 13,500
600 International Paper Co. ........................................... 22,725
----------
36,225
----------
POLLUTION CONTROL--1.4%
600 Browning-Ferris Industries, Inc. .................................. 17,700
900 WMX Technologies, Inc. ............................................ 26,888
----------
44,588
----------
RAILROADS--1.8%
400 Burlington Northern Santa Fe Corp. ................................ 31,200
600 CSX Corp. ......................................................... 27,375
----------
58,575
----------
RESTAURANTS--0.7%
500 McDonald's Corp. .................................................. 22,563
----------
</TABLE>
See notes to financial statements.
F-36
<PAGE> 80
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<C> <S> <C>
SPECIALTY RETAILERS--1.6%
400 GAP (The), Inc. ................................................... $ 16,800
500 Tommy Hilfiger Corp.*.............................................. 21,188
300 Nautica Enterprises, Inc.*......................................... 13,125
----------
51,113
----------
SOAPS--0.8%
300 Procter & Gamble Co. .............................................. 24,900
----------
TELECOMMUNICATIONS--3.8%
400 Cabletron Systems, Inc.*........................................... 32,399
400 Cisco Systems, Inc.*............................................... 29,849
400 DSC Communications, Corp.*......................................... 14,749
1,000 Ericsson, (L.M.) Telephone, Co. ADR+, Class (B).................... 19,499
300 Nokia Corp., ADR+, Class (A)....................................... 11,662
500 Octel Communications Corp.*........................................ 16,124
----------
124,282
----------
TELE-EQUIPMENT--0.9%
800 Worldcom, Inc.*.................................................... 28,199
----------
TOBACCO--1.4%
500 Philip Morris Cos., Inc. .......................................... 45,249
----------
Total Common Stocks (cost $1,769,202).............................. 2,359,493
----------
Total Investments (cost $2,640,222)........................... 99.7% 3,263,357
Other Assets less Liabilities................................. 0.3% 8,718
---- ----------
Net Assets.................................................... 100% $3,272,075
==== =========
</TABLE>
The aggregate cost of securities for federal income tax purposes at December 31,
1995, is $2,644,735.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<C> <S> <C> <C>
Aggregate gross unrealized appreciation............................. $646,773
Aggregate gross unrealized depreciation............................. (28,151)
--------
Net unrealized appreciation......................................... $618,622
========
</TABLE>
- ---------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ American Depository Receipts.
Percentages are based on net assets.
See notes to financial statements.
F-37
<PAGE> 81
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Securities, at value (cost $8,129,490) (Note 2).................................. $8,316,405
Cash............................................................................. 107,065
Interest receivable.............................................................. 54,221
Receivable for fund shares sold.................................................. 88,351
----------
Total assets........................................................... 8,566,042
----------
LIABILITIES
Payment for fund shares redeemed................................................. 29
Accrued expenses:
Investment advisory fees.................................................... 2,834
Custodian fees.............................................................. 18
Professional fees........................................................... 6,781
Insurance fees.............................................................. 487
----------
Total liabilities...................................................... 10,149
----------
Net assets....................................................................... $8,555,893
==========
Net assets consist of:
Capital stock--authorized 150,000,000 shares of $.01 par value; outstanding,
838,370 shares............................................................ $ 8,384
Additional paid-in capital.................................................. 8,360,594
Net unrealized appreciation of investments.................................. 186,915
----------
Total net assets....................................................... $8,555,893
==========
Net asset value per share of outstanding capital stock ($8,555,893/838,370
shares)........................................................................ $10.21
======
</TABLE>
See notes to financial statements.
F-38
<PAGE> 82
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Interest..................................................................... $300,179
--------
Expenses:
Investment advisory fees (Note 3)............................................ 18,670
Custodian fees............................................................... 3,518
Professional fees............................................................ 9,064
Director fees................................................................ 741
Miscellaneous fees........................................................... 491
--------
Total expenses.......................................................... 32,484
Expense reduction....................................................... (1,748)
--------
Net expenses............................................................ 30,736
--------
Net investment income................................................... 269,443
--------
Realized and unrealized gain on investments (Note 2)
Realized gain from security transactions
Proceeds from sales..................................................... 8,082
Cost of securities sold................................................. 7,919
--------
Net realized gain on investments.................................................. 163
Net increase in unrealized appreciation of investments............................ 189,162
--------
Net realized and unrealized gain on investments................................... 189,325
--------
Net increase in net assets resulting from operations.............................. $458,768
========
</TABLE>
See notes to financial statements.
F-39
<PAGE> 83
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
From operations:
Net investment income......................................... $ 269,443 $ 475,252
Net realized gain (loss) on investments (Note 2).............. 163 (225,417)
Net increase (decrease) in unrealized appreciation of
investments.................................................. 189,162 (636,335)
----------- ------------
Net increase (decrease) in net assets resulting from operations.... 458,768 (386,500)
----------- ------------
Dividends and distributions to shareholders from:
Net investment income
($.34 and $.05 per share) (Note 4).......................... (269,443) (6,626)
Net realized gain from investment transactions
($.00* and $.00 per share)(Note 4).......................... (163) 0
----------- ------------
Total dividends and distributions........................... (269,606) (6,626)
----------- ------------
From capital stock transaction:
Proceeds from the issuance of shares
(966,948 and 314,744 shares) (Note 5)....................... 9,796,475 3,013,018
Proceeds from dividends and distributions reinvested
(26,406 and 696 shares) (Note 4)............................ 269,606 6,626
Net asset value of shares redeemed
(281,625 and 2,250,535 shares).............................. (2,903,581) (21,458,384)
----------- ------------
Net increase (decrease) in net assets resulting from capital stock
transactions..................................................... 7,162,500 (18,438,740)
----------- ------------
Net increase (decrease) in net assets.............................. 7,351,662 (18,831,866)
Net assets beginning of year....................................... 1,204,231 20,036,097
----------- ------------
Net assets end of year............................................. $8,555,893... $ 1,204,231
=========== ============
</TABLE>
- ---------------
* Less than $.01 per share.
See notes to financial statements.
F-40
<PAGE> 84
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ----------
<C> <S> <C> <C>
U.S. TREASURY NOTE -- 12.7%
$1,000,000 U.S. Treasury Note, 7.75%, due 11/30/99 (cost $998,803)............. $1,083,430
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 84.5%
250,000 Federal National Mortgage Assn., 5.43%, due 02/08/96................ 248,567
1,500,000 Federal Home Loan Mortgage Corp., REMIC, 6.50%, due 11/15/21........ 1,518,210
285,000 Federal National Mortgage Assn., REMIC, 7.00%, due 01/25/03......... 293,502
500,000 Federal National Mortgage Assn., REMIC, 5.75%, due 08/25/18......... 494,255
150,000 Federal Home Loan Mortgage Corp., 5.55%, due 01/05/96............... 149,908
275,000 Federal Home Loan Mortgage Corp., 5.57%, due 01/05/96............... 274,830
100,000 Federal Home Loan Mortgage Corp., 5.56%, due 01/16/96............... 99,768
300,000 Federal Home Loan Mortgage Corp., 5.67%, due 01/22/96............... 299,008
700,000 Federal Home Loan Mortgage Corp., 5.45%, due 01/22/96............... 697,775
100,000 Federal Home Loan Mortgage Corp., 5.55%, due 01/24/96............... 99,646
100,000 Federal Home Loan Mortgage Corp., 5.47%, due 01/25/96............... 99,634
275,000 Federal Home Loan Mortgage Corp., 5.57%, due 01/29/96............... 273,809
100,000 Federal Home Loan Mortgage Corp., 5.55%, due 02/05/96............... 99,460
250,000 Federal Home Loan Mortgage Corp., 5.53%, due 02/26/96............... 247,850
299,548 Government National Mortgage Assn., 7.50%, due 10/15/24............. 297,368
500,000 Student Loan Marketing Assn., 7.44%, due 03/28/00................... 509,185
1,000,000 Tennessee Valley Authority, 7.625%, due 09/15/99.................... 1,014,670
500,000 Tennessee Valley Authority, 6.375%, due 06/15/05.................... 515,530
----------
Total U.S. Government Agency Obligations (cost $7,130,687).......... 7,232,975
----------
Total Investments (cost $8,129,490).......................... 97.2% 8,316,405
Other Assets less Liabilities................................ 2.8% 239,488
----- ----------
Net Assets................................................... 100.0% $8,555,893
===== ==========
The aggregate cost of securities for federal income tax purposes at December 31, 1995 is
$8,129,490.
The following amounts are based on costs for federal income tax purposes:
Aggregate gross unrealized appreciation............................. $ 186,915
Aggregate gross unrealized depreciation............................. 0
----------
Net unrealized appreciation......................................... $ 186,915
==========
</TABLE>
- ---------------
Percentages are based on net assets.
See notes to financial statements.
F-41
<PAGE> 85
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Securities, at value (cost $111,985,205) (Note 2).............................. $111,985,205
Cash........................................................................... 673,134
Interest receivable............................................................ 1,508
Receivable for fund shares sold................................................ 724,982
------------
Total assets......................................................... 113,384,829
------------
LIABILITIES
Payable for fund shares redeemed............................................... 2,954,104
Accrued expenses:
Investment advisory fees.................................................. 34,837
Custodian fees............................................................ 1,555
Professional fees......................................................... 16,879
Insurance fees............................................................ 10,476
------------
Total liabilities.................................................... 3,017,851
------------
Net assets..................................................................... $110,366,978
============
Net assets consist of:
Capital stock--authorized 250,000,000 shares of $.01 par value;
outstanding, 110,366,978 shares.......................................... $ 1,103,670
Additional paid-in capital................................................ 109,263,308
------------
Total net assets..................................................... $110,366,978
============
Net asset value per share of outstanding capital stock
($110,366,978/110,366,978 shares)............................................ $1.00
============
</TABLE>
See notes to financial statements.
F-42
<PAGE> 86
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
Investment income:
Interest.................................................................... $4,815,658
----------
Expenses:
Investment advisory fees (Note 3)........................................... 323,058
Custodian fees.............................................................. 11,691
Professional fees........................................................... 18,951
Directors fees.............................................................. 18,526
Miscellaneous fees.......................................................... 11,196
----------
Total expenses......................................................... 383,422
Expense reduction...................................................... (2,869)
----------
Net expenses................................................................ 380,553
----------
Net investment income............................................................ 4,435,105
----------
Net increase in net assets resulting from operations............................. $4,435,105
==========
</TABLE>
See notes to financial statements.
F-43
<PAGE> 87
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
------------- -------------
<S> <C> <C>
From operations:
Net increase in net assets resulting from operations....... $ 4,435,105 $ 2,471,131
Dividends to shareholders from:
Net investment income (Note 4)............................. (4,435,105) (2,471,131)
------------- -------------
Total increase........................................ 0 0
------------- -------------
From capital stock transactions:
Proceeds from issuance of shares
(466,424,179 and 385,400,102 shares) (Note 5)............ 466,424,179 385,400,102
Proceeds from dividends reinvested
(4,435,105 and 2,471,131 shares) (Note 4)................ 4,435,105 2,471,131
Net asset value of shares redeemed
(443,845,037 and 369,993,362 shares)..................... (443,845,037) (369,993,362)
------------- -------------
Net increase in net assets resulting from capital stock
transactions.................................................. 27,014,247 17,877,871
Net assets beginning of year.................................... 83,352,731 65,474,860
------------- -------------
Net assets end of year.......................................... $ 110,366,978 $ 83,352,731
============= =============
</TABLE>
See notes to financial statements.
F-44
<PAGE> 88
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ------------
<C> <S> <C> <C>
COMMERCIAL PAPER--101.5%
$ 700,000 American Express Credit Corp., 5.60%, due 01/11/96.............. $ 698,911
425,000 American Express Credit Corp., 5.65%, due 01/29/96.............. 423,132
2,000,000 American Express Credit Corp., 5.60%, due 02/02/96.............. 1,990,044
1,700,000 American Express Credit Corp., 5.52%, due 03/20/96.............. 1,679,408
2,100,000 Associates Corp. of NA, 5.68%, due 01/10/96..................... 2,097,018
3,000,000 Avco Financial Services, Canada Ltd., 5.83%, due 01/19/96....... 2,991,255
3,000,000 Bank of New York Co., Inc., 5.83%, due 01/22/96................. 2,989,798
1,400,000 Bell Atlantic Financial Svcs. Inc., 5.95%, due 01/09/96......... 1,398,149
1,750,000 Bell Atlantic Network Funding Corp., 5.61%, due 01/26/96........ 1,743,183
2,800,000 British Columbia Province, Canada, 5.72%, due 01/12/96.......... 2,795,106
300,000 C.I.T. Group Holdings, Inc., 5.80%, due 01/31/96................ 298,550
1,550,000 C.I.T. Group Holdings, Inc., 5.70%, due 02/09/96................ 1,540,429
1,200,000 C.I.T. Group Holdings, Inc., 5.54%, due 03/14/96................ 1,186,520
600,000 Canadian Wheat Board, 5.61%, due 03/11/96....................... 593,455
1,000,000 Chevron UK Investment P.L.C., 5.78%, due 01/26/96............... 995,986
1,000,000 Colonial Pipeline Co., 5.70%, due 01/26/96...................... 996,042
1,850,000 Colonial Pipeline Co., 5.67%, due 02/16/96...................... 1,836,597
550,000 Colonial Pipeline Co., 5.62%, due 02/28/96...................... 545,020
4,000,000 Commercial Credit Co., 5.76%, due 01/16/96...................... 3,990,400
4,000,000 Consolidated Coal Co., 5.76%, due 01/04/96...................... 3,998,080
1,450,000 Delaware Funding Corp., 5.73%, due 01/19/96..................... 1,445,846
700,000 du Pont (E.I.) de Nemours & Co., 5.64%, due 01/26/96............ 697,259
200,000 Ford Motor Credit Co., 5.77%, due 01/05/96...................... 199,872
2,000,000 Ford Motor Credit Co., 5.75%, due 01/18/96...................... 1,994,570
1,300,000 General Electric Capital Corp., 5.75%, due 01/19/96............. 1,296,263
1,850,000 General Electric Capital Corp., 5.62%, due 02/13/96............. 1,837,582
1,350,000 General Motors Acceptance Corp., 5.70%, due 01/09/96............ 1,348,290
1,900,000 General Motors Acceptance Corp., 5.58%, due 03/04/96............ 1,881,447
1,600,000 Goldman Sachs Group, L.P., 5.75%, due 01/10/96.................. 1,597,700
3,000,000 Goldman Sachs Group, L.P., 5.68%, due 01/12/96.................. 2,994,793
1,000,000 Household Financial Corp., 5.75%, due 01/03/96.................. 999,681
200,000 Household Finance Corp., 5.77%, due 01/26/96.................... 199,199
1,400,000 Household Finance Corp., 5.71%, due 01/29/96.................... 1,393,783
4,200,000 Merrill Lynch and Co. Inc., 5.73%, due 01/31/96................. 4,179,945
357,000 Midwest Funding Corp., 5.83%, due 01/04/96(a)................... 357,228
3,000,000 Morgan, J.P. & Co., Inc., 5.77%, due 01/08/96................... 2,996,634
2,000,000 Natwest Bancorp, 5.73%, due 01/08/96............................ 1,997,772
3,000,000 Nationsbank Corp., 5.40%, due 04/03/96.......................... 2,958,150
</TABLE>
See notes to financial statements.
F-45
<PAGE> 89
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ------------
<C> <S> <C> <C>
COMMERCIAL PAPER--101.5% (CONTINUED)
$3,000,000 Olympic Auto Receivables Trust, 5.825%, due 12/15/96............ $ 3,012,623
450,000 PHH Corp., 5.70%, due 01/18/96.................................. 448,789
3,900,000 PHH Corp., 5.74%, due 01/19/96.................................. 3,888,807
4,000,000 Pepsico, Inc., 5.68%, due 01/26/96.............................. 3,984,222
5,000,000 Philip Morris Co., 5.65%, due 01/19/96.......................... 4,985,875
500,000 Prudential Funding Corp., 5.78%, due 01/12/96................... 499,117
2,300,000 Prudential Funding Corp., 5.75%, due 01/16/96................... 2,294,490
1,000,000 Prudential Insurance Co. of America, 5.75%, due 01/16/96........ 997,604
1,000,000 Republic New York Corp., 5.70%, due 01/31/96.................... 995,250
3,000,000 Republic National Bank, 5.53%, due 02/01/96..................... 2,985,714
2,000,000 Royal Bank of Canada, 5.70%, due 01/29/96....................... 1,991,134
3,000,000 Seagram Co. Ltd., 5.70%, due 01/18/96........................... 2,991,925
2,000,000 Seagram Co. Ltd., 5.40%, due 03/19/96........................... 1,976,600
1,200,000 Sears Roebuck Acceptance Corp., 5.84%, due 01/09/96............. 1,198,443
650,000 Sears Roebuck Acceptance Corp., 5.70%, due 01/16/96............. 648,456
2,925,000 Sears Roebuck Acceptance Corp., 5.70%, due 01/29/96............. 2,912,033
3,000,000 Transamerica Commercial Finance Corp., 5.77%, due 01/04/96...... 2,998,557
4,000,000 Wachovia Bank of N. Carolina, N.A., 5.75%, due 01/11/96......... 4,026,832
4,000,000 Weyerhaeuser Mortgage Co., 5.62%, due 01/24/96.................. 3,985,637
------------
Total Investments (cost $111,985,205).................... 101.5% 111,985,205
Other Assets less Liabilities............................ (1.5)% (1,618,227)
----- ------------
Net Assets............................................... 100.0% $110,366,978
===== ===========
</TABLE>
- ---------------
(a) The interest rate is subject to change periodically based on the greater of
the 30 or 90-day Federal composite rate. This instrument resets on a weekly
basis. The rate shown was in effect as of December 31, 1995.
Percentages are based on net assets.
See notes to financial statements.
F-46
<PAGE> 90
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
The MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized
on December 14, 1984, is composed of seven different portfolios that are, in
effect, separate investment funds: the Equity Growth Portfolio, the Equity
Income Portfolio, the Intermediate Term Bond Portfolio, the Long Term Bond
Portfolio, the Government Securities Portfolio , the Money Market Portfolio, and
the Diversified Portfolio. The Fund issues a separate class of capital stock for
each portfolio. Each share of capital stock issued with respect to a portfolio
will have a pro-rata interest in the assets of that portfolio and will have no
interest in the assets of any other portfolio. Each portfolio bears its own
liabilities and also its proportionate share of the general liabilities of the
Fund. The Fund is registered under the Investment Company Act of 1940 (the "1940
Act") as an open-end, diversified, management investment company. This
registration does not imply any supervision by the Securities and Exchange
Commission over the Fund's management.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Portfolio Valuations:
Short-term securities are valued at amortized cost. The amortized cost of a
security is determined by valuing it at original cost and thereafter amortizing
any discount or premium at a constant rate until maturity.
Common stocks traded on national securities exchanges are valued at the
last sales price as of the close of the New York Stock Exchange or at the last
bid price for over-the-counter securities.
Bonds are valued at the last available price provided by an independent
pricing service for securities traded on a national securities exchange. Bonds
that are listed on a national securities exchange but are not traded and bonds
that are regularly traded in the over-the-counter market are valued at the mean
of the last available bid and asked prices by an independent pricing service.
Original issue discounts on investments purchased are amortized over their
respective lives using the yield-to-maturity method.
All other securities, when held by the Fund, including any restricted
securities, are valued at their fair value as determined in good faith by the
Board of Directors.
B. Federal Income Taxes:
Each portfolio of the Fund is a separate entity for Federal income tax
purposes and intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no Federal income tax provision
is required.
C. Security Transactions and Investment Income:
Security transactions are recorded as of the trade date.
Dividend income is recorded on the ex-dividend date, income from other
investments is accrued as earned.
Realized gains and losses from investments sold are determined on the basis
of identified cost for accounting and federal income tax purposes.
D. Other
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosure of liabilities at
the date of the financial statements and the reported amounts of expenses during
the reporting period. Actual results could differ from these estimates.
Earnings credits received from the custodian are shown as a reduction of
total expenses.
F-47
<PAGE> 91
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
Under an investment advisory agreement between the Fund and MONY Life
Insurance Company of America ("Investment Adviser" or "MONY America"), a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"), the Investment Adviser provides investment advice and related services
for each of the Fund's portfolios, administers the overall day-to-day affairs of
the Fund, bears all expenses associated with calculating net asset values of the
portfolios and compensates the directors, officers and employees of the Fund who
are affiliated with the Investment Adviser.
For these services, the Investment Adviser receives an investment
management fee. The fee is a daily charge equal to an annual rate of .40% of the
first $400,000,000 of the aggregate average daily net assets of the portfolios,
.35% of the next $400,000,000 of the aggregate average daily net assets of the
portfolios and .30% of the aggregate average daily net assets of the portfolios
in excess of $800,000,000. Each daily charge is dividend among the portfolios in
proportion to their net assets on that date. The Investment Adviser reimburses
the portfolios for investment management fees charged to the extent that any
portfolio's aggregate ordinary operating expense (excluding interest, taxes,
brokerage fees and commissions, and extraordinary expenses) exceeds in any
fiscal year 2.5% of the first $30,000,000 of the average daily net assets of
such portfolio, 2.0% of the next $70,000,000 of the average daily net assets of
such portfolio, and 1.5% of the average daily net assets of the portfolio in
excess of $100,000,000. For the year ended December 31, 1995, the fees incurred
by the Fund were $769,821.
The Investment Adviser has a service agreement with MONY to provide it with
personnel, services, facilities, supplies and equipment in order to carry out
its duties to provide investment management services under the Investment
Advisory Agreement. The Investment Adviser pays MONY for its services.
Aggregate remuneration incurred to nonaffiliated Directors of the Fund for
the year ended December 31, 1995, amounted to $43,949.
4. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Dividends from net investment income (including realized gains and losses
on portfolio securities) of the Money Market Portfolio are declared and
reinvested each business day in additional full and fractional shares of the
portfolio. This policy enables the Money Market Portfolio to maintain a net
asset value of $1.00 per share.
Dividends from net investment income of the other portfolios will normally
be declared and reinvested annually in additional full and fractional shares.
The Fund will declare and distribute annually, before the close of its
fiscal year, dividends from net realized capital gains, if any, of each
portfolio, other than the Money Market Portfolio.
Dividends from net investment income and distributions from net realized
capital gains are determined in accordance with U.S. federal income tax
regulations which may differ from generally accepted accounting principles.
Distributions may differ from net investment income and net realized capital
gains recognized for financial reporting purposes due to timing differences,
primarily the deferral of wash sales, and post-October losses.
During the year ended December 31, 1995, the fund increased paid-in capital
by $6,821, decreased undistributed net investment income by $11,327 and
increased accumulated net realized capital gains by $4,506. These differences
are due to return of capital distributions received by the Fund on portfolio
securities.
F-48
<PAGE> 92
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL STOCK
A. Authorized Capital Stock:
The Fund has 2 billion authorized shares of capital stock with a par value
of $.01 per share. 1.15 billion shares are reserved for issuance and divided
into seven classes as follows: Equity Growth Portfolio (150 million shares);
Equity Income Portfolio (150 million shares); Intermediate Term Bond Portfolio
(150 million shares); Long Term Bond Portfolio (150 million shares); Government
Securities Portfolio (150 million shares); Money Market Portfolio (250 million
shares); and Diversified Portfolio (150 million shares). The remaining shares
will be issued to any new or existing class upon approval of the Board of
Directors.
Each outstanding share of capital stock has a pro-rata interest in the
assets of the Portfolio to which the capital stock of that class relates and has
no interest in the assets of any other portfolio.
B. Purchases of Fund Shares:
Shares of the Fund are sold to MONY America and MONY for allocation to MONY
America Variable Account L and MONY Variable Account L to fund benefits under
Flexible Premium Variable Life Insurance Contracts and Variable Universal Life
Insurance Contracts; to MONY America Variable Account S and MONY Variable
Account S to fund benefits under Variable Life Insurance with Additional Premium
Option Contracts; and to MONY America Variable Account A and MONY Variable
Account A, to fund benefits under Flexible Payment Variable Annuity Contracts
issued by those companies. Shares of the Fund are also sold to MONY for
allocation to the Keynote Series Account ("Keynote") to fund benefits under
Individual Plans issued by MONY.
6. FEDERAL INCOME TAX-CAPITAL LOSS CARRYFORWARD
At December 31, 1995, the following portfolios of the Fund have capital
loss carryforwards available to offset future capital gains, if any, for federal
income tax purposes:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EXPIRATION DATE
- -------------------------------------------------------------- -------- -----------------
<S> <C> <C>
Long Term Bond................................................ $867,174 December 31, 2002
========
Intermediate Term Bond........................................ 16,850 December 31, 2002
17,218 December 31, 2003
--------
$ 34,068
========
</TABLE>
F-49
<PAGE> 93
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. PURCHASES AND SALES OF INVESTMENTS
The aggregate cost of investments purchased and proceeds from sales or
maturities, other than short-term investments, for the year ended December 31,
1995 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C> <C>
Equity Growth Portfolio........................ Other $ 654,055 $ 547,927
Equity Income Portfolio........................ Other 3,946,356 3,873,059
Intermediate Term Bond Portfolio............... U.S. Government
Obligations 4,017,031 7,599,832
Other 3,003,790 2,016,020
Long Term Bond Portfolio....................... U.S. Government
Obligations 26,551,009 23,093,367
Other 17,165,300 15,165,440
Diversified Portfolio.......................... Other 934,590 681,853
Government Securities Portfolio................ U.S. Government
Obligations 4,547,390 8,082
</TABLE>
8. KEYNOTE SERIES ACCOUNT REDEMPTION
On June 24, 1994, pursuant to an exemptive order granted by the Securities
and Exchange Commission dated June 8, 1994, the Group Plans in the Keynote
Series Account effected a substitution of all its shares in the MONY Series
Fund, Inc. for interests in Diversified Investors Portfolios, a diversified open
end management investment company which was organized as a trust under the laws
of the state of New York. The substitution was effected through a redemption of
assets-in-kind and was deemed a non-taxable event for Keynote and the Fund. The
net assets redeemed from the Fund were as follows:
<TABLE>
<CAPTION>
PORTFOLIO
- -------------------------------------------------------------------------------
<S> <C>
Money Market................................................................... $ 9,386,705
Long Term Bond................................................................. 7,690,740
Government Securities Portfolio (Intermediate Government Bond Portfolio)....... 17,772,012
Diversified.................................................................... 36,211,296
Equity Income.................................................................. 138,419,403
Equity Growth.................................................................. 63,214,732
------------
Total................................................................ $272,694,888
===========
</TABLE>
The substitution resulted in a permanent difference between tax and
financial statement reporting. Accordingly, the following amounts had been
reclassified from undistributed net investment income and accumulated
undistributed realized gains to additional paid in capital:
<TABLE>
<CAPTION>
ACCUMULATED UNDISTRIBUTED UNDISTRIBUTED NET
PORTFOLIO REALIZED GAINS INVESTMENT INCOME
- ------------------------------------------------------ ------------------------- -----------------
<S> <C> <C>
Money Market.......................................... $ 0 $ 0
Long Term Bond........................................ (179,876) 231,879
Government Securities Portfolio (Intermediate
Government Bond Portfolio).......................... (225,416) 468,626
Diversified........................................... 2,102,885 511,055
Equity Income......................................... 17,893,033 2,248,575
Equity Growth......................................... 3,575,829 597,310
------------------------- -----------------
Total....................................... $23,166,455 $ 4,057,445
=================== =============
</TABLE>
F-50
