<PAGE> 1
MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
QUEST FOR VALUE(SM)
ACCUMULATION TRUST
1995 ANNUAL REPORT
PRODUCTS:
MONYMASTER
MONYEQUITY MASTER
VALUEMASTER
MONYVESTOR
STRATEGIST
- --------------------------------------------------------------------------------
MUTUAL OF NEW YORK
- --------------------------------------------------------------------------------
<PAGE> 2
This report is not to be construed as an offering for sale of any contracts
participating in the MONY Series Fund, Inc., Enterprise Accumulation Trust or
the Quest for Value Accumulation Trust, or as a solicitation as an offer to buy
any such contracts unless preceded by or accompanied by the most recent calendar
quarter MONYMaster or MONYEquity Master performance and a current MONYMaster or
MONYEquity Master prospectus which contains more complete information of charges
and expenses.
Quest for Value is a registered service mark of Oppenheimer Capital.
<PAGE> 3
MONY SERIES FUND, INC.
Dear Shareholder,
With the success of the Federal Reserve's preemptive tightening of monetary
policy in order to head off any inflationary pressures, the U.S. economy has
settled into a slower growth path. Consumer spending is weak in the U.S., and
most foreign economies are also experiencing slow growth. High levels of
installment debts, concern about layoffs and stagnant income growth should
continue to limit consumer spending. Inflation is low and should remain subdued
with little indication of upward pressure in any of the measures. There are few
signs of anything that would cause growth to accelerate. The soft landing for
the economy has worked. The next move by the Fed should be toward lower rates.
The stock market in 1995 benefited from better than expected corporate
earnings, the success of the soft landing, declining interest rates and large
inflows to equity mutual funds. Slower growth, low inflation and the beginning
of efforts to reduce the federal deficit should continue to keep interest rates
in a stable to lower trend. These same factors that help inflation and interest
rates, however, have a negative impact on corporate earnings. The market has
likely lost much of the earnings support that it has had over the past year.
Some companies should still be able to prosper in this less favorable
environment, but they will be fewer in number and the market will be more
selective.
At the beginning of 1996, the stock market will still be enmeshed in the
same tug of war between the conflicting forces of positive overall conditions
and uncertain individual industry and company fundamentals. How this resolves
itself will be a major determinant of the market's performance in 1996,
especially since valuations are still on the high side. As markets generally
anticipate the future, it is possible that 1995's very strong year in both the
stock and bond markets has already discounted some of the positive investment
environment expected in 1996. My observation is that the market could thus
correct, even as good news is being reported. The stock market still has not
experienced a significant correction, although individual industries and a
number of stocks have had twenty percent or more declines.
The market had the benefit of strong inflows of money in 1995. Individuals
seeking to increase their retirement savings, to start a new pension program, or
simply to earn a higher rate of return made substantial investments in equity
funds. If the conviction that stocks offer the best long-term returns is
temporarily shaken, and these flows reverse, it would be very negative for the
market. Most of the new money is retirement oriented rather than speculative,
and usually part of a periodic deposit plan; and thus, should be more stable and
less likely to switch on temporary bad news. A substantial shift in investment
preference is not expected, but it is a risk which must be considered in the
outlook.
There are a number of events (lack of progress on the deficit, Bosnia,
growth that is too strong or too weak, the election) that could cause a
correction or a temporary disenchantment with stocks. While any of the above
could trigger a market decline, there is no current evidence of anything that
would cause a long-term shift away from stocks. For 1996, it appears that
corporate profits, while growing more slowly, will not totally collapse or turn
negative. The economy is still growing, 1996 is an election year, and no one
wants a recession. Earnings probably may not be as good as in 1995 and neither
may stock market performance, but there should be enough growth for a modestly
positive year in 1996. The bond market was another beneficiary of the positive
macro-economic trends and also enjoyed a strong year. It will be difficult to
match 1995, but if these trends continue, the results should be stable rates and
a positive total return for bonds.
Sincerely,
/s/ Kenneth M. Levine
-----------------------------
Kenneth M. Levine
Chairman
1
<PAGE> 4
THE MONY SERIES FUND, INC.
ENTERPRISE ACCUMULATION TRUST
AND
QUEST FOR VALUE ACCUMULATION TRUST
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
VARIABLE ACCOUNT L
MONY America
Statements of Assets and Liabilities as of December 31, 1995................ 5
Statements of Operations for the year ended December 31, 1995............... 7
Statements of Changes in Net Assets......................................... 9
Notes to Financial Statements............................................... 11
Report of Independent Accountants........................................... 14
MONY
Statements of Assets and Liabilities as of December 31, 1995................ 15
Statements of Operations for the year ended December 31, 1995............... 16
Statements of Changes in Net Assets......................................... 17
Notes to Financial Statements............................................... 19
Report of Independent Accountants........................................... 21
VARIABLE ACCOUNT S
MONY America
Statements of Assets and Liabilities as of December 31, 1995................ 22
Statements of Operations for the year ended December 31, 1995............... 23
Statements of Changes in Net Assets......................................... 24
Notes to Financial Statements............................................... 26
Report of Independent Accountants........................................... 28
MONY
Statements of Assets and Liabilities as of December 31, 1995................ 29
Statements of Operations for the year ended December 31, 1995............... 30
Statements of Changes in Net Assets......................................... 31
Notes to Financial Statements............................................... 32
Report of Independent Accountants........................................... 34
VARIABLE ACCOUNT A
MONY America
Statements of Assets and Liabilities as of December 31, 1995................ 35
Statements of Operations for the year ended December 31, 1995............... 38
Statements of Changes in Net Assets......................................... 41
Notes to Financial Statements............................................... 45
Report of Independent Accountants........................................... 49
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
VARIABLE ACCOUNT A (Continued)
MONY
Statements of Assets and Liabilities as of December 31, 1995................ 50
Statements of Operations for the year ended December 31, 1995............... 53
Statements of Changes in Net Assets......................................... 56
Notes to Financial Statements............................................... 60
Report of Independent Accountants........................................... 65
MONY SERIES FUND
Equity Growth Portfolio (MONYMaster I, MONYVestor and Strategist)
Statement of Assets and Liabilities as of December 31, 1995................. 67
Statement of Operations for the year ended December 31, 1995................ 68
Statements of Changes in Net Assets......................................... 69
Portfolio of Investments as of December 31, 1995............................ 70
Equity Income Portfolio (MONYMaster I, MONYVestor and Strategist)
Statement of Assets and Liabilities as of December 31, 1995................. 76
Statement of Operations for the year ended December 31, 1995................ 77
Statements of Changes in Net Assets......................................... 78
Portfolio of Investments as of December 31, 1995............................ 79
Intermediate Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor
and Strategist)
Statement of Assets and Liabilities as of December 31, 1995................. 86
Statement of Operations for the year ended December 31, 1995................ 87
Statements of Changes in Net Assets......................................... 88
Portfolio of Investments as of December 31, 1995............................ 89
Long Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor
and Strategist)
Statement of Assets and Liabilities as of December 31, 1995................. 92
Statement of Operations for the year ended December 31, 1995................ 93
Statements of Changes in Net Assets......................................... 94
Portfolio of Investments as of December 31, 1995............................ 95
Diversified Portfolio (MONYMaster I, MONYVestor and Strategist)
Statement of Assets and Liabilities as of December 31, 1995................. 98
Statement of Operations for the year ended December 31, 1995................ 99
Statements of Changes in Net Assets......................................... 100
Portfolio of Investments as of December 31, 1995............................ 101
Government Securities Portfolio (MONYEquity Master and MONYMaster II)
Statement of Assets and Liabilities as of December 31, 1995................. 107
Statement of Operations for the year ended December 31, 1995................ 108
Statements of Changes in Net Assets......................................... 109
Portfolio of Investments as of December 31, 1995............................ 110
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
MONY SERIES FUND (Continued)
Money Market Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor
and Strategist)
Statement of Assets and Liabilities as of December 31, 1995................. 112
Statement of Operations for the year ended December 31, 1995................ 113
Statements of Changes in Net Assets......................................... 114
Portfolio of Investments as of December 31, 1995............................ 115
NOTES TO FINANCIAL STATEMENTS.................................................... 117
FINANCIAL HIGHLIGHTS............................................................. 121
REPORT OF INDEPENDENT ACCOUNTANTS................................................ 128
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio (MONYEquity Master and MONYMaster II)........................... 129
Small Cap Portfolio (MONYEquity Master and MONYMaster II)........................ 130
Managed Portfolio (MONYEquity Master and MONYMaster II).......................... 132
International Growth Portfolio (MONYEquity Master and MONYMaster II)............. 133
High-Yield Bond Portfolio (MONYEquity Master and MONYMaster II).................. 134
Equity Portfolio Schedule of Investments......................................... 136
Small Cap Portfolio Schedule of Investments...................................... 139
Managed Portfolio Schedule of Investments........................................ 145
International Growth Portfolio Schedule of Investments........................... 149
High-Yield Bond Portfolio Schedule of Investments................................ 156
Statement of Assets and Liabilities as of December 31, 1995...................... 160
Statement of Operations for the year ended December 31, 1995..................... 161
Statement of Changes in Net Assets............................................... 162
FINANCIAL HIGHLIGHTS............................................................. 164
NOTES TO FINANCIAL STATEMENTS FOR ALL PORTFOLIOS................................. 169
REPORT OF INDEPENDENT ACCOUNTANTS................................................ 174
QUEST FOR VALUE ACCUMULATION TRUST
Report to Shareholders........................................................... 175
Equity Portfolio (ValueMaster)................................................... 176
Small Cap Portfolio (ValueMaster)................................................ 187
Managed Portfolio (ValueMaster).................................................. 200
Bond Portfolio (ValueMaster)..................................................... 211
Money Market Portfolio (ValueMaster)............................................. 221
</TABLE>
4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $ 493,463 $ 499,432 $ 180,391 $ 95,586 $ 854,895 $ 90,294
========= ========= ========= ========= ========= =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................ $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
Amount due from MONY America.... 0 9 0 0 65 6
Amount due from MONY Series
Fund, Inc. ................... 239 338 91 1 357 4
---------- ---------- ---------- ---------- ---------- ----------
Total assets.......... 551,280 605,530 182,869 106,119 989,911 90,304
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to MONY America...... 239 338 91 1 357 4
Amount due to MONY Series
Fund, Inc. ................... 0 9 0 0 65 6
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities..... 239 347 91 1 422 10
---------- ---------- ---------- ---------- ---------- ----------
Net assets...................... $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
========= ========= ========= ========= ========= =========
Net assets consist of:
Contractholders' net
payments................. $ 531,034 $ 578,333 $ 207,122 $ 124,860 $1,050,514 $ 192,695
Cost of insurance
withdrawals (Note 3)..... (323,941) (413,683) (173,922) (129,844) (784,109) (172,053)
Undistributed net
investment income........ 118,647 253,780 155,523 95,530 461,971 69,652
Accumulated net realized
gains (loss) on
investments.............. 167,723 81,002 (8,332) 5,040 126,519 0
Unrealized appreciation of
investments.............. 57,578 105,751 2,387 10,532 134,594 0
---------- ---------- ---------- ---------- ---------- ----------
Net assets...................... $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
========= ========= ========= ========= ========= =========
Number of units outstanding*.... 15,643 16,377 8,556 3,869 35,607 5,499
---------- ---------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding................... $ 35.23 $ 36.95 $ 21.36 $ 27.43 $ 27.79 $ 16.42
========= ========= ========= ========= ========= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
5
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $ 27,635 $261,535 $172,086 $1,700,817 $1,021,263 $604,890
=========== ========== ========== ========== ========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)........................ $ 0 $ 0 $ 0 $ 0 $1,044,476 $600,827
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. 26,720 269,812 171,378 1,700,817 0 0
Amount due from Enterprise Accumulation Trust..... 0 0 0 0 364 306
Amount due from MONY America...................... 0 22 0 29,305 375 483
Amount due from MONY Series Fund, Inc............. 13 6 23 7 0 0
------------ ---------- ---------- ---------- ---------- ----------
Total assets.............................. 26,733 269,840 171,401 1,730,129 1,045,215 601,616
------------ ---------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust....... 0 0 0 0 375 483
Amount due to MONY America........................ 13 6 23 7 364 306
Amount due to MONY Series Fund, Inc............... 0 22 0 29,305 0 0
------------ ---------- ---------- ---------- ---------- ----------
Total liabilities......................... 13 28 23 29,312 739 789
------------ ---------- ---------- ---------- ---------- ----------
Net assets........................................ $ 26,720 $269,812 $171,378 $1,700,817 $1,044,476 $600,827
=========== ========== ========== ========== ========== ==========
Net assets consist of:
Contractholders' net payments................. $ 27,817 $254,451 $171,675 $1,710,823 $1,065,456 $644,769
Cost of insurance withdrawals (Note 3)........ (1,970) (8,040) (4,816) (30,382) (92,752) (66,072)
Undistributed net investment income........... 1,414 13,958 5,094 20,376 25,168 16,433
Accumulated net realized gains on
investments................................. 374 1,166 133 0 23,391 9,760
Unrealized appreciation (depreciation) of
investments................................. (915) 8,277 (708) 0 23,213 (4,063)
------------ ---------- ---------- ---------- ---------- ----------
Net assets........................................ $ 26,720 $269,812 $171,378 $1,700,817 $1,044,476 $600,827
=========== ========== ========== ========== ========== ==========
Number of units outstanding*...................... 2,464 22,127 15,959 163,465 80,766 52,194
------------ ---------- ---------- ---------- ---------- ----------
Net asset value per unit outstanding.............. $ 10.84 $ 12.19 $ 10.74 $ 10.40 $ 12.93 $ 11.51
=========== ========== ========== ========== ========== ==========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $6,147,845 $ 379,526 $352,348
========== =========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)........................ $6,239,963 $ 379,417 $352,709
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. 0 0 0
Amount due from Enterprise Accumulation Trust..... 15,893 202 61
Amount due from MONY America...................... 1,689 376 173
Amount due from MONY Series Fund, Inc............. 0 0 0
---------- ------------- ----------
Total assets.............................. 6,257,545 379,995 352,943
---------- ------------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust....... 1,689 376 173
Amount due to MONY America........................ 15,893 202 61
Amount due to MONY Series Fund, Inc............... 0 0 0
---------- ------------- ----------
Total liabilities......................... 17,582 578 234
---------- ------------- ----------
Net assets........................................ $6,239,963 $ 379,417 $352,709
========== =========== ==========
Net assets consist of:
Contractholders' net payments................. $6,329,873 $ 389,734 $362,971
Cost of insurance withdrawals (Note 3)........ (489,373) (34,312) (18,214)
Undistributed net investment income........... 184,073 17,938 7,401
Accumulated net realized gains on
investments................................. 123,272 6,166 190
Unrealized appreciation (depreciation) of
investments................................. 92,118 (109) 361
---------- ------------- ----------
Net assets........................................ $6,239,963 $ 379,417 $352,709
========== =========== ==========
Number of units outstanding*...................... 465,095 31,566 31,730
---------- ------------- ----------
Net asset value per unit outstanding.............. $ 13.42 $ 12.02 $ 11.12
========== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
6
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE LIFE
-----------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income..................... $ 36,269 $ 31,156 $ 10,214 $ 5,730 $ 52,334 $ 6,355
Mortality and expense risk charges
(Note 3).......................... 2,810 3,334 1,049 629 5,530 693
-------- -------- ------- ------- -------- ------
Net investment income............... 33,459 27,822 9,165 5,101 46,804 5,662
-------- -------- ------- ------- -------- ------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............... 201,342 154,706 30,377 41,657 185,053 264,962
Cost of shares sold............... 171,034 115,616 28,318 36,449 149,611 264,962
-------- -------- ------- ------- -------- ------
Net realized gains on investments... 30,308 39,090 2,059 5,208 35,442 0
Net increase in unrealized
appreciation of investments....... 57,362 88,922 11,732 16,634 125,651 0
-------- -------- ------- ------- -------- ------
Net realized and unrealized gains on
investments....................... 87,670 128,012 13,791 21,842 161,093 0
-------- -------- ------- ------- -------- ------
Net increase in net assets resulting
from operations................... $121,129 $155,834 $ 22,956 $ 26,943 $207,897 $ 5,662
======== ======== ======= ======= ======== ======
</TABLE>
See notes to financial statements.
7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ------------------ ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 20, MARCH 31, MARCH 20, FEBRUARY 17, MARCH 8,
1995* 1995* 1995* 1995* 1995*
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
--------------- --------------- --------------- ------------------ ---------------
<S> <C> <C> <C> <C> <C>
Dividend income.................. $ 1,489 $14,565 $ 5,452 $ 23,644 $ 27,509
Mortality and expense risk
charges (Note 3)............... 75 607 358 3,268 2,341
------- ------- ------- ---------- --------
Net investment income............ 1,414 13,958 5,094 20,376 25,168
------- ------- ------- ---------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales............ 14,675 23,454 20,277 8,312,134 187,733
Cost of shares sold............ 14,301 22,288 20,144 8,312,134 164,342
------- ------- ------- ---------- --------
Net realized gains on
investments.................... 374 1,166 133 0 23,391
Net increase (decrease) in
unrealized appreciation of
investments.................... (915) 8,277 (708) 0 23,213
------- ------- ------- ---------- --------
Net realized and unrealized gains
(losses) on investments........ (541) 9,443 (575) 0 46,604
------- ------- ------- ---------- --------
Net increase in net assets
resulting from operations...... $ 873 $23,401 $ 4,519 $ 20,376 $ 71,772
======= ======= ======= ========== ========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 9, MARCH 8, MARCH 8, MARCH 20,
1995* 1995* 1995* 1995*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Dividend income.................. $17,779 $ 197,666 $18,775 $ 8,030
Mortality and expense risk
charges (Note 3)............... 1,346 13,593 837 629
-------- ---------- ------- --------
Net investment income............ 16,433 184,073 17,938 7,401
-------- ---------- ------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales............ 156,201 1,299,150 85,432 112,342
Cost of shares sold............ 146,441 1,175,878 79,266 112,152
-------- ---------- ------- --------
Net realized gains on
investments.................... 9,760 123,272 6,166 190
Net increase (decrease) in
unrealized appreciation of
investments.................... (4,063) 92,118 (109) 361
-------- ---------- ------- --------
Net realized and unrealized gains
(losses) on investments........ 5,697 215,390 6,057 551
-------- ---------- ------- --------
Net increase in net assets
resulting from operations...... $22,130 $ 399,463 $23,995 $ 7,952
======== ========== ======= ========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
8
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
-------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- ------------------- ------------------- -------------------
1995 1994 1995 1994 1995 1994 1995 1994
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income..................... $ 33,459 $ 6,953 $ 27,822 $ 29,418 $ 9,165 $ 8,849 $ 5,101 $ 6,859
Net realized gains on investments......... 30,308 9,428 39,090 11,825 2,059 765 5,208 1,489
Net increase (decrease) in unrealized
appreciation of investments............. 57,362 (10,655) 88,922 (40,147) 11,732 (13,415) 16,634 (16,392)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations................. 121,129 5,726 155,834 1,096 22,956 (3,801) 26,943 (8,044)
-------- -------- -------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units... 246,538 40,449 56,024 49,919 13,113 12,962 7,195 6,144
Net asset value of units redeemed or used
to meet contract obligations............ 164,237 118,555 132,231 79,426 23,804 21,236 29,360 18,657
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) from unit
transactions.............................. 82,301 (78,106) (76,207) (29,507) (10,691) (8,274) (22,165) (12,513)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets....... 203,430 (72,380) 79,627 (28,411) 12,265 (12,075) 4,778 (20,557)
Net assets beginning of year................ 347,611 419,991 525,556 553,967 170,513 182,588 101,340 121,897
-------- -------- -------- -------- -------- -------- -------- --------
Net assets end of year*..................... $551,041 $347,611 $605,183 $525,556 $182,778 $170,513 $106,118 $101,340
======== ======== ======== ======== ======== ======== ======== ========
Units outstanding beginning of year......... 12,809 15,712 18,826 19,878 9,112 9,552 4,777 5,361
Units issued during the year................ 8,221 1,506 1,763 1,767 652 692 296 290
Units redeemed during the year.............. 5,387 4,409 4,212 2,819 1,208 1,132 1,204 874
-------- -------- -------- -------- -------- -------- -------- --------
Units outstanding end of year............... 15,643 12,809 16,377 18,826 8,556 9,112 3,869 4,777
======== ======== ======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment
income of: $118,647 $ 85,188 $253,780 $225,958 $155,523 $146,358 $ 95,530 $ 90,429
<CAPTION>
VARIABLE LIFE
----------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 46,804 $ 23,875 $ 5,662 $ 5,483
Net realized gains on investments.......... 35,442 17,533 0 0
Net increase (decrease) in unrealized
appreciation of investments.............. 125,651 (38,475) 0 0
-------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.................. 207,897 2,933 5,662 5,483
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.... 90,610 95,640 137,395 93,348
Net asset value of units redeemed or used
to meet contract obligations............. 145,580 148,999 235,050 18,485
-------- -------- -------- --------
Net increase (decrease) from unit
transactions............................... (54,970) (53,359) (97,655) 74,863
-------- -------- -------- --------
Net increase (decrease) in net assets........ 152,927 (50,426) (91,993) 80,346
Net assets beginning of year................. 836,562 886,988 182,287 101,941
-------- -------- -------- --------
Net assets end of year*...................... $989,489 $836,562 $ 90,294 $182,287
======== ======== ======== ========
Units outstanding beginning of year.......... 37,807 40,254 11,659 6,734
Units issued during the year................. 3,647 4,346 8,586 6,128
Units redeemed during the year............... 5,847 6,793 14,746 1,203
-------- -------- -------- --------
Units outstanding end of year................ 35,607 37,807 5,499 11,659
======== ======== ======== ========
- ---------------
*Includes undistributed net investment income
of: $461,971 $415,167 $ 69,652 $ 63,990
</TABLE>
See notes to financial statements.
9
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------- ---------------- ---------------- ------------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 20, 1995** MARCH 31, 1995** MARCH 20, 1995** FEBRUARY 17, 1995** MARCH 8, 1995**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
---------------- ---------------- ---------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income........... $ 1,414 $ 13,958 $ 5,094 $ 20,376 $ 25,168
Net realized gains on
investments................... 374 1,166 133 0 23,391
Net increase (decrease) in
unrealized appreciation of
investments................... (915) 8,277 (708) 0 23,213
------- -------- -------- ---------- ----------
Net increase in net assets
resulting from operations....... 873 23,401 4,519 20,376 71,772
------- -------- -------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units...................... 29,827 254,605 171,901 8,289,772 1,073,215
Net asset value of units
redeemed or used to meet
contract obligations.......... 3,980 8,194 5,042 6,609,331 100,511
------- -------- -------- ---------- ----------
Net increase from unit
transactions.................... 25,847 246,411 166,859 1,680,441 972,704
------- -------- -------- ---------- ----------
Net increase in net assets........ 26,720 269,812 171,378 1,700,817 1,044,476
Net assets beginning of year...... 0 0 0 0 0
------- -------- -------- ---------- ----------
Net assets end of year*........... $ 26,720 $269,812 $171,378 $ 1,700,817 $ 1,044,476
======= ======== ======== ========== ==========
Units outstanding beginning of
year............................ 0 0 0 0 0
Units issued during the year...... 2,838 22,925 16,439 807,565 88,980
Units redeemed during the year.... 374 798 480 644,100 8,214
------- -------- -------- ---------- ----------
Units outstanding end of year..... 2,464 22,127 15,959 163,465 80,766
======= ======== ======== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 1,414 $ 13,958 $ 5,094 $ 20,376 $ 25,168
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 9, 1995** MARCH 8, 1995** MARCH 8, 1995** MARCH 20, 1995**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
From operations:
Net investment income........... $ 16,433 $ 184,073 $ 17,938 $ 7,401
Net realized gains on
investments................... 9,760 123,272 6,166 190
Net increase (decrease) in
unrealized appreciation of
investments................... (4,063) 92,118 (109) 361
------- ---------- ------- -------
Net increase in net assets
resulting from operations....... 22,130 399,463 23,995 7,952
------- ---------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 662,265 6,530,478 394,240 367,392
Net asset value of units
redeemed or used to meet
contract obligations.......... 83,568 689,978 38,818 22,635
------- ---------- ------- -------
Net increase from unit
transactions.................... 578,697 5,840,500 355,422 344,757
------- ---------- ------- -------
Net increase in net assets........ 600,827 6,239,963 379,417 352,709
Net assets beginning of year...... 0 0 0 0
------- ---------- ------- -------
Net assets end of year*........... $ 600,827 $ 6,239,963 $ 379,417 $352,709
======= ========== ======= =======
Units outstanding beginning of
year............................ 0 0 0 0
Units issued during the year...... 59,708 519,384 34,979 33,810
Units redeemed during the year.... 7,514 54,289 3,413 2,080
------- ---------- ------- -------
Units outstanding end of year..... 52,194 465,095 31,566 31,730
======= ========== ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 16,433 $ 184,073 $ 17,938 $ 7,401
** Commencement of operations.
</TABLE>
See notes to financial statements.
10
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Variable Life Insurance and Variable Universal Life
Insurance Policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"). MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently fifteen subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund") or the Enterprise Accumulation Trust ("Enterprise") (collectively, the
"Funds"). The subaccounts of the Variable Universal Life commenced operations
during 1995. The Funds are registered under the 1940 Act as an open end,
diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 66 to 128 and 129 to 174,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Fund. Except for the Money Market
Portfolio, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolio, the net asset values are based on amortized cost of the securities
held which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal holder of the assets held by the Variable
Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for all subaccounts for 1995 aggregated $917,026.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts)
of aggregate average daily net assets. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
11
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1995 consist of the
following:
<TABLE>
<CAPTION>
LONG
EQUITY EQUITY INTERMEDIATE TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------- -------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.......................... 16,883 33,841 17,489 9,679 63,665 182,287
Amount.......................... $347,395 $508,727 $179,858 $107,442 $827,619 $182,287
-------- -------- -------- -------- -------- --------
Shares acquired:
Shares.......................... 12,139 4,146 1,752 1,501 8,255 166,614
Amount.......................... $280,833 $ 75,165 $ 18,637 $ 18,863 $124,553 $166,614
Shares received for reinvestment
of dividends:
Shares.......................... 1,444 1,589 966 445 3,329 6,355
Amount.......................... $ 36,269 $ 31,156 $ 10,214 $ 5,730 $ 52,334 $ 6,355
Shares redeemed:
Shares.......................... 8,521 8,715 2,914 3,386 12,305 264,962
Amount.......................... $171,034 $115,616 $ 28,318 $ 36,449 $149,611 $264,962
-------- -------- -------- -------- -------- --------
Net change:
Shares.......................... 5,062 (2,980) (196) (1,440) (721) (91,993)
Amount.......................... $146,068 ($ 9,295) $ 533 ($11,856) $ 27,276 ($91,993)
-------- -------- -------- -------- -------- --------
Shares end of year:
Shares.......................... 21,945 30,861 17,293 8,239 62,944 90,294
Amount.......................... $493,463 $499,432 $180,391 $ 95,586 $854,895 $ 90,294
======== ======== ======== ======== ======== ========
</TABLE>
12
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1995
consist of the following:
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL INTERNATIONAL HIGH YIELD
TERM BOND BOND SECURITIES MARKET EQUITY CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ---------- ---------- -------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares
beginning
of year:
Shares.... 0 0 0 0 0 0 0 0 0
Amount.... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------- ----------
Shares
acquired:
Shares.... 3,719 21,651 18,234 9,989,307 51,815 40,031 262,958 82,905 86,158
Amount.... $ 40,447 $ 269,258 $186,778 $9,989,307 $1,158,096 $733,552 $7,126,057 $ 440,017 $456,470
Shares
received
for
reinvestment
of
dividends:
Shares.... 141 1,131 534 23,644 1,178 962 7,044 3,464 1,515
Amount.... $ 1,489 $ 14,565 $ 5,452 $ 23,644 $ 27,509 $ 17,779 $ 197,666 $ 18,775 $ 8,030
Shares
redeemed:
Shares.... 1,332 1,834 1,982 8,312,134 8,262 8,481 47,622 15,976 21,249
Amount.... $ 14,301 $ 22,288 $ 20,144 $8,312,134 $ 164,342 $146,441 $1,175,878 $ 79,266 $112,152
----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------- ----------
Net change:
Shares.... 2,528 20,948 16,786 1,700,817 44,731 32,512 222,380 70,393 66,424
Amount.... $ 27,635 $ 261,535 $172,086 $1,700,817 $1,021,263 $604,890 $6,147,845 $ 379,526 $352,348
----------- ---------- ---------- ----------- ----------- ---------- ----------- ----------- ----------
Shares end
of year:
Shares.... 2,528 20,948 16,786 1,700,817 44,731 32,512 222,380 70,393 66,424
Amount.... $ 27,635 $ 261,535 $172,086 $1,700,817 $1,021,263 $604,890 $6,147,845 $ 379,526 $352,348
=========== =========== =========== =========== =========== =========== ========== =========== ===========
</TABLE>
13
<PAGE> 16
MONY SERIES FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L (comprising, respectively, the Variable Life's
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified and Money Market Subaccounts and the Variable Universal Life's
Intermediate Term Bond, Long Term Bond, Government Securities, Money Market,
Equity, Small Cap, Managed, International Growth and High Yield Bond Subaccounts
as of December 31, 1995, for the Variable Life's Subaccount the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended, and for the
Variable Universal Life's Subaccounts the statements of operations and
statements of changes in Net Assets for the Intermediate Term Bond Subaccount
for which the period is from April 20, 1995 (commencement of operations) to
December 31, 1995, the Long Term Bond Subaccount for which the period is from
March 31, 1995 (commencement of operations) to December 31, 1995, the Government
Securities and High Yield Subaccounts for which the period is March 20, 1995
(commencement of operations) to December 31, 1995, the Money Market Subaccount
for which the period is from February 17, 1995 (commencement of operations) to
December 31, 1995, the Equity, Managed and International Subaccounts for which
the period is from March 8, 1995 (commencement of operations) to December 31,
1995, and the Small Cap Subaccounts for which the period is from March 9, 1995
(commencement of operations) to December 31, 1995. These financial statements
are the responsibility of MONY America's management. Our responsibility is to
express an opinion on these financial statements 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 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 referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L as of December 31,
1995, the results of their operations, and the changes in their net assets 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 19, 1996
14
<PAGE> 17
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $ 54,194 $ 28,083 $ 6,408 $ 12,721 $ 52,290 $ 31,492
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)............... $ 59,532 $ 29,272 $ 6,512 $ 14,121 $ 58,406 $ 31,492
-------- -------- -------- -------- -------- --------
Net assets............................... $ 59,532 $ 29,272 $ 6,512 $ 14,121 $ 58,406 $ 31,492
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments.......... $ 73,547 $ 39,656 $ 8,388 $ 15,455 $ 62,214 $ 50,245
Cost of insurance withdrawals (Note
3).................................. (41,945) (24,960) (11,872) (33,885) (30,292) (41,265)
Undistributed net investment income.... 9,506 8,958 8,848 26,013 18,197 22,512
Accumulated net realized gains on
investments......................... 13,086 4,429 1,044 5,138 2,171 0
Unrealized appreciation of
investments......................... 5,338 1,189 104 1,400 6,116 0
-------- -------- -------- -------- -------- --------
Net assets............................... $ 59,532 $ 29,272 $ 6,512 $ 14,121 $ 58,406 $ 31,492
======== ======== ======== ======== ======== ========
Number of units outstanding*............. 2,137 1,016 336 605 2,427 1,997
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding..... $ 27.86 $ 28.81 $ 19.38 $ 23.34 $ 24.07 $ 15.77
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
15
<PAGE> 18
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......................... $ 3,917 $1,506 $363 $ 762 $3,088 $1,757
Mortality and expense risk charges (Note
3)..................................... 254 87 36 288 245 191
------- ------ ---- ------- ------ ------
Net investment income.................... 3,663 1,419 327 474 2,843 1,566
------- ------ ---- ------- ------ ------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales.................... 10,534 7,758 641 44,504 2,542 3,969
Cost of shares sold.................... 8,634 7,400 624 36,311 2,103 3,969
------- ------ ---- ------- ------ ------
Net realized gains on investments........ 1,900 358 17 8,193 439 0
Net increase in unrealized appreciation
of investments......................... 5,010 2,181 454 3,566 5,659 0
------- ------ ---- ------- ------ ------
Net realized and unrealized gains on
investments............................ 6,910 2,539 471 11,759 6,098 0
------- ------ ---- ------- ------ ------
Net increase in net assets resulting from
operations............................. $ 10,573 $3,958 $798 $ 12,233 $8,941 $1,566
======= ====== ==== ======= ====== ======
</TABLE>
16
<PAGE> 19
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
----------------- ----------------- ---------------
1995 1994 1995 1994 1995 1994
------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income......................... $ 3,663 $ 733 $ 1,419 $ 685 $ 327 $ 293
Net realized gains (losses) on investments.... 1,900 1,650 358 471 17 (10)
Net increase (decrease) in unrealized
appreciation of investments................ 5,010 (1,721) 2,181 (1,034) 454 (403)
------- ------- ------- ------- ------ ------
Net increase (decrease) in net assets resulting
from operations............................... 10,573 662 3,958 122 798 (120)
------- ------- ------- ------- ------ ------
From unit transactions:
Net proceeds from the issuance of units....... 21,677 8,872 20,006 6,536 516 456
Net asset value of units redeemed or used to
meet contract obligations.................. 9,320 11,608 6,980 8,665 418 413
------- ------- ------- ------- ------ ------
Net increase (decrease) from unit
transactions.................................. 12,357 (2,736) 13,026 (2,129) 98 43
------- ------- ------- ------- ------ ------
Net increase (decrease) in net assets........... 22,930 (2,074) 16,984 (2,007) 896 (77)
Net assets beginning of year.................... 36,602 38,676 12,288 14,295 5,616 5,693
------- ------- ------- ------- ------ ------
Net assets end of year*......................... $59,532 $36,602 $29,272 $12,288 $6,512 $5,616
======= ======= ======= ======= ====== ======
Units outstanding beginning of year............. 1,705 1,829 565 658 331 329
Units issued during the year.................... 815 419 735 297 28 27
Units redeemed during the year.................. 383 543 284 390 23 25
------- ------- ------- ------- ------ ------
Units outstanding end of year................... 2,137 1,705 1,016 565 336 331
======= ======= ======= ======= ====== ======
- ---------------
* Includes undistributed net investment income
of: $ 9,506 $ 5,843 $ 8,958 $ 7,539 $8,848 $8,521
</TABLE>
See notes to financial statements.
17
<PAGE> 20
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- -----------------
1995 1994 1995 1994 1995 1994
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............. $ 474 $ 3,093 $ 2,843 $ 976 $ 1,566 $ 1,323
Net realized gains on
investments.................... 8,193 233 439 438 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,566 (6,749) 5,659 (1,347) 0 0
------- ------- ------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations........................ 12,233 (3,423) 8,941 67 1,566 1,323
------- ------- ------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 739 578 17,167 3,644 1,811 1,542
Net asset value of units redeemed
or used to meet contract
obligations.................... 44,332 3,199 2,298 6,126 3,761 16,104
------- ------- ------- ------- ------- -------
Net increase (decrease) from unit
transactions...................... (43,593) (2,621) 14,869 (2,482) (1,950) (14,562)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net
assets............................ (31,360) (6,044) 23,810 (2,415) (384) (13,239)
Net assets beginning of year........ 45,481 51,525 34,596 37,011 31,876 45,115
------- ------- ------- ------- ------- -------
Net assets end of year*............. $ 14,121 $45,481 $58,406 $34,596 $31,492 $31,876
======= ======= ======= ======= ======= =======
Units outstanding beginning of
year.............................. 2,521 2,664 1,805 1,939 2,123 3,103
Units issued during the year........ 28 31 728 191 117 108
Units redeemed during the year...... 1,944 174 106 325 243 1,088
------- ------- ------- ------- ------- -------
Units outstanding end of year....... 605 2,521 2,427 1,805 1,997 2,123
======= ======= ======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 26,013 $25,539 $18,197 $15,354 $22,512 $20,946
</TABLE>
See notes to financial statements.
18
<PAGE> 21
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Premium Variable Life Insurance Policies. These
policies are issued by MONY. MONY is currently taxed as a life insurance company
and will include the Variable Account's operations in its tax return. MONY does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently six subaccounts within the Variable Account, and each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund"). The Fund is registered under the 1940 Act as an open end, diversified,
management investment company.
A full presentation of the related financial statements and footnotes of
the Fund are contained on pages 66 to 128 and should be read in conjunction with
these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios of the Fund
is stated at value which is the net asset value of the Fund. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Fund. For the Money Market Portfolio, the net
asset values are based on amortized cost of the securities held which
approximates value.
3. RELATED PARTY TRANSACTIONS
MONY is the legal holder of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for all
subaccounts for 1995 aggregated $13,986.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
19
<PAGE> 22
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1995 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................................... 1,777 791 576 4,344 2,633 31,876
Amount................................... $36,274 $13,280 $5,966 $ 47,647 $34,139 $31,876
------- ------- ------ -------- ------- -------
Shares acquired:
Shares................................... 887 1,063 66 51 1,055 1,828
Amount................................... $22,637 $20,697 $ 703 $ 623 $17,166 $ 1,828
Shares received for reinvestment of
dividends:
Shares................................... 156 77 34 59 196 1,757
Amount................................... $ 3,917 $ 1,506 $ 363 $ 762 $ 3,088 $ 1,757
Shares redeemed:
Shares................................... 449 438 60 3,358 169 3,969
Amount................................... $ 8,634 $ 7,400 $ 624 $ 36,311 $ 2,103 $ 3,969
------- ------- ------ -------- ------- -------
Net change:
Shares................................... 594 702 40 (3,248) 1,082 (384)
Amount................................... $17,920 $14,803 $ 442 ($34,926) $18,151 ($ 384)
------- ------- ------ -------- ------- -------
Shares end of year:
Shares................................... 2,371 1,493 616 1,096 3,715 31,492
Amount................................... $54,194 $28,083 $6,408 $ 12,721 $52,290 $31,492
======= ======= ====== ======== ======= =======
</TABLE>
20
<PAGE> 23
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of the
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account L (comprising, respectively, Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market
Subaccounts) as of December 31, 1995, the related statements of operations for
the year then ended, and the statements of changes in net assets for each of the
two years in the period then ended. These financial statements are the
responsibility of MONY's management. Our responsibility is to express an opinion
on these financial statements 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 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 referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account L as of December 31, 1995, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 19, 1996
21
<PAGE> 24
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).............. $ 63,003 $132,135 $ 44,040 $ 49,676 $ 80,835 $ 61,121
======= ======== ======= ======= ======== =======
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)................ $ 84,719 $155,721 $ 43,733 $ 49,458 $ 102,292 $ 61,121
------- -------- ------- ------- -------- -------
Net assets................................ $ 84,719 $155,721 $ 43,733 $ 49,458 $ 102,292 $ 61,121
======= ======== ======= ======= ======== =======
Net assets consist of:
Contractholders' net payments........... $ 24,710 $ 77,326 $ 28,689 $ 28,374 $ 33,413 $ 47,784
Cost of insurance withdrawals (Note
3)................................... (7,448) (12,101) (4,957) (4,976) (12,344) (3,223)
Undistributed net investment income..... 16,039 51,439 20,998 23,056 47,476 16,560
Accumulated net realized gains (losses)
on investments....................... 29,702 15,471 (690) 3,222 12,290 0
Unrealized appreciation (depreciation)
of investments....................... 21,716 23,586 (307) (218) 21,457 0
------- -------- ------- ------- -------- -------
Net assets................................ $ 84,719 $155,721 $ 43,733 $ 49,458 $ 102,292 $ 61,121
======= ======== ======= ======= ======== =======
Number of units outstanding*.............. 3,031 5,872 2,443 2,268 4,414 4,185
------- -------- ------- ------- -------- -------
Net asset value per unit outstanding...... $ 27.95 $ 26.52 $ 17.90 $ 21.81 $ 23.17 $ 14.61
======= ======== ======= ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
22
<PAGE> 25
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......................... $ 5,574 $ 8,012 $ 2,443 $2,670 $ 5,409 $ 3,425
Mortality and expense risk charges (Note
3)..................................... 645 756 374 101 792 529
------- ------- ------- ------ ------- -------
Net investment income.................... 4,929 7,256 2,069 2,569 4,617 2,896
------- ------- ------- ------ ------- -------
Realized and unrealized gains (losses) on
investments (Note 2):
Proceeds from sales.................... 1,839 3,390 29,308 1,334 2,261 28,809
Cost of shares sold.................... 912 2,581 30,302 1,242 1,809 28,809
------- ------- ------- ------ ------- -------
Net realized gains (losses) on
investments............................ 927 809 (994) 92 452 0
Net increase in unrealized appreciation
of investments......................... 13,545 16,774 4,709 375 15,714 0
------- ------- ------- ------ ------- -------
Net realized and unrealized gains on
investments............................ 14,472 17,583 3,715 467 16,166 0
------- ------- ------- ------ ------- -------
Net increase in net assets resulting from
operations............................. $ 19,401 $ 24,839 $ 5,784 $3,036 $ 20,783 $ 2,896
======= ======= ======= ====== ======= =======
</TABLE>
See notes to financial statements.
23
<PAGE> 26
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
----------------- ------------------- ------------------
1995 1994 1995 1994 1995 1994
------- ------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 4,929 $ 1,175 $ 7,256 $ 3,858 $ 2,069 $ 3,297
Net realized gains (losses) on
investments........................... 927 1,269 809 4,494 (994) 28
Net increase (decrease) in unrealized
appreciation of investments........... 13,545 (1,589) 16,774 (8,142) 4,709 (4,953)
------- ------- -------- -------- -------- -------
Net increase (decrease) in net assets
resulting from operations................ 19,401 855 24,839 210 5,784 (1,628)
------- ------- -------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of
units................................. 0 0 59,567 1,590 0 0
Net asset value of units redeemed or used
to meet contract obligations.......... 1,063 1,221 2,500 22,244 28,812 961
------- ------- -------- -------- -------- -------
Net increase (decrease) from unit
transactions............................. (1,063) (1,221) 57,067 (20,654) (28,812) (961)
------- ------- -------- -------- -------- -------
Net increase (decrease) in net assets...... 18,338 (366) 81,906 (20,444) (23,028) (2,589)
Net assets beginning of year............... 66,381 66,747 73,815 94,259 66,761 69,350
------- ------- -------- -------- -------- -------
Net assets end of year*.................... $84,719 $66,381 $155,721 $ 73,815 $ 43,733 $66,761
======= ======= ======== ======== ======== =======
Units outstanding beginning of year........ 3,075 3,131 3,676 4,690 4,247 4,308
Units issued during the year............... 0 0 2,308 72 0 0
Units redeemed during the year............. 44 56 112 1,086 1,804 61
------- ------- -------- -------- -------- -------
Units outstanding end of year.............. 3,031 3,075 5,872 3,676 2,443 4,247
======= ======= ======== ======== ======== =======
- ---------------
*Includes undistributed net investment
income of: $16,039 $11,110 $ 51,439 $ 44,183 $ 20,998 $18,929
</TABLE>
See notes to financial statements.
24
<PAGE> 27
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
1995 1994 1995 1994 1995 1994
------- -------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............... $ 2,569 $ 439 $ 4,617 $ 2,144 $ 2,896 $ 2,543
Net realized gains on investments... 92 859 452 343 0 0
Net increase (decrease) in
unrealized appreciation of
investments...................... 375 (2,744) 15,714 (2,346) 0 0
------- ------- -------- -------- ------- -------
Net increase (decrease) in net assets
resulting from operations........... 3,036 (1,446) 20,783 141 2,896 2,543
------- ------- -------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units............................ 40,033 1,183 142 0 0 0
Net asset value of units redeemed or
used to meet contract
obligations...................... 1,224 14,232 1,453 1,355 28,160 573
------- ------- -------- -------- ------- -------
Net increase (decrease) from unit
transactions........................ 38,809 (13,049) (1,311) (1,355) (28,160) (573)
------- ------- -------- -------- ------- -------
Net increase (decrease) in net
assets.............................. 41,845 (14,495) 19,472 (1,214) (25,264) 1,970
Net assets beginning of year.......... 7,613 22,108 82,820 84,034 86,385 84,415
------- ------- -------- -------- ------- -------
Net assets end of year*............... $49,458 $ 7,613 $102,292 $82,820 $ 61,121 $86,385
======= ======= ======== ======== ======= =======
Units outstanding beginning of year... 450 1,217 4,478 4,551 6,196 6,238
Units issued during the year.......... 1,883 58 8 0 0 0
Units redeemed during the year........ 65 825 72 73 2,011 42
------- ------- -------- -------- ------- -------
Units outstanding end of year......... 2,268 450 4,414 4,478 4,185 6,196
======= ======= ======== ======== ======= =======
- ---------------
* Includes undistributed net
investment income of:............... $23,056 $ 20,487 $ 47,476 $42,859 $ 16,560 $13,664
</TABLE>
See notes to financial statements.
25
<PAGE> 28
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account S (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support Variable Life Insurance with Additional Premium
Option Policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"). MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently six subaccounts within the Variable Account, and each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund"). The Fund is registered under the 1940 Act as an open end, diversified,
management investment company.
A full presentation of the related financial statements and footnotes of
the Fund are contained on pages 66 to 128 and should be read in conjunction with
these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of the respective portfolios is stated at value
which is the net asset value of the Fund. Except for the Money Market Portfolio,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Fund. For the Money Market Portfolio, the
net asset values are based on amortized cost of the securities held which
approximates value.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal holder of the assets held by the Variable
Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained for any premium taxes.
The cost of insurance, administration charges, and, if applicable, deferred
premium taxes are deducted monthly from the cash value of the contract to
compensate MONY America. These deductions are treated as contractholder
redemptions by the Variable Account. The amount deducted for all subaccount for
1995 aggregated $7,388.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.85 percent of aggregate
average daily net assets. As investment adviser to the Fund, it receives amounts
paid by the Fund for those services.
26
<PAGE> 29
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1995 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares........................... 3,224 4,753 6,847 727 6,304 86,385
Amount........................... $ 58,210 $ 67,003 $ 71,777 $ 8,206 $77,077 $ 86,385
------- -------- -------- ------- ------- --------
Shares acquired:
Shares........................... 5 2,969 11 3,019 10 120
Amount........................... $ 131 $ 59,701 $ 122 $40,042 $ 158 $ 120
Shares received for reinvestment of
dividends:
Shares........................... 222 409 231 207 344 3,425
Amount........................... $ 5,574 $ 8,012 $ 2,443 $ 2,670 $ 5,409 $ 3,425
Shares redeemed:
Shares........................... 77 190 2,952 113 151 28,809
Amount........................... $ 912 $ 2,581 $ 30,302 $ 1,242 $ 1,809 $ 28,809
------- -------- -------- ------- ------- --------
Net change:
Shares........................... 150 3,188 (2,710) 3,113 203 (25,264)
Amount........................... $ 4,793 $ 65,132 $(27,737) $41,470 $ 3,758 $ (25,264)
------- -------- -------- ------- ------- --------
Shares end of year:
Shares........................... 3,374 7,941 4,137 3,840 6,507 61,121
Amount........................... $ 63,003 $ 132,135 $ 44,040 $49,676 $80,835 $ 61,121
======= ======== ======== ======= ======= ========
</TABLE>
27
<PAGE> 30
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account S:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account S (comprising, respectively, Equity Growth, Equity
Income, Intermediate Term Bond, Long Term Bond, Diversified and Money Market
Subaccounts) as of December 31, 1995, the related statements of operations for
the year then ended, and the statements of changes in net assets for each of the
two years in the period then ended. These financial statements are the
responsibility of MONY America's management. Our responsibility is to express an
opinion on these financial statements 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 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 referred to above present fairly,
in all material respects, the financial position of each of the subaccounts
constituting MONY America Variable Account S as of December 31, 1995, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 19, 1996
28
<PAGE> 31
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)......................................... $ 28,612 $ 51,962
========= ==========
Investments in MONY Series Fund, Inc. at net asset value (Note 2).... $ 38,416 $ 61,168
--------- ----------
Net assets........................................................... $ 38,416 $ 61,168
========= ==========
Net assets consist of:
Contractholders' net payments...................................... $ 16,653 $ (141,524)
Cost of insurance withdrawals (Note 3)............................. (1,701) (65,321)
Undistributed net investment income................................ 11,308 145,939
Accumulated net realized gains on investments...................... 2,352 112,868
Unrealized appreciation of investments............................. 9,804 9,206
--------- ----------
Net assets........................................................... $ 38,416 $ 61,168
========= ==========
Number of units outstanding*......................................... 1,533 2,823
--------- ----------
Net asset value per unit outstanding................................. $ 25.05 $ 21.67
========= ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
29
<PAGE> 32
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
Dividend income....................................................... $1,977 $ 3,234
Mortality and expense risk charges (Note 3)........................... 285 473
------ -------
Net investment income................................................. 1,692 2,761
------ -------
Realized and unrealized gains on investments (Note 2):
Proceeds from sales................................................. 550 1,037
Cost of shares sold................................................. 408 869
------ -------
Net realized gains on investments..................................... 142 168
Net increase in unrealized appreciation of investments................ 7,523 9,476
------ -------
Net realized and unrealized gains on investments...................... 7,665 9,644
------ -------
Net increase in net assets resulting from operations.................. $9,357 $ 12,405
====== =======
</TABLE>
See notes to financial statements.
30
<PAGE> 33
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
------------------- ---------------------
1995 1994 1995 1994
------- ------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income........................... $ 1,692 $ 1,569 $ 2,761 $ 1,278
Net realized gains on investments............... 142 96 168 58
Net increase (decrease) in unrealized
appreciation of investments.................. 7,523 (1,685) 9,476 (1,255)
------- ------- -------- --------
Net increase (decrease) in net assets resulting
from operations................................. 9,357 (20) 12,405 81
------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of units......... 0 0 0 0
Net asset value of units redeemed or used to
meet contract obligations.................... 265 281 564 564
------- ------- -------- --------
Net decrease from unit transactions............... (265) (281) (564) (564)
------- ------- -------- --------
Net increase (decrease) in net assets............. 9,092 (301) 11,841 (483)
Net assets beginning of year...................... 29,324 29,625 49,327 49,810
------- ------- -------- --------
Net assets end of year*........................... $38,416 $29,324 $ 61,168 $ 49,327
======= ======= ======== ========
Units outstanding beginning of year............... 1,546 1,560 2,852 2,885
Units issued during the year...................... 0 0 0 0
Units redeemed during the year.................... 13 14 29 33
------- ------- -------- --------
Units outstanding end of year..................... 1,533 1,546 2,823 2,852
======= ======= ======== ========
- ---------------
* Includes undistributed net investment income of: $11,308 $ 9,616 $145,939 $143,178
</TABLE>
See notes to financial statements.
31
<PAGE> 34
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account S (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance with Additional Premium Option
Policies. These policies are issued by MONY. MONY is currently taxed as a life
insurance company and will include the Variable Account's operations in its tax
return. MONY does not expect, based upon current tax law, to incur any income
tax burden upon the earnings or realized capital gains attributable to the
Variable Account. Based on this expectation, no charges are currently deducted
from the Variable Account for federal income tax purposes.
There are currently six subaccounts available within the Variable Account.
Four of the subaccounts have no assets and two invest only in a corresponding
portfolio of the MONY Series Fund, Inc. (the "Fund"). The Fund is registered
under the 1940 Act as an open end, diversified, management investment company.
A full presentation of the related financial statements and footnotes of
the Fund are contained on pages 66 to 128 and should be read in conjunction with
these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset value of the Fund. Net asset values are based upon
market valuations of the securities held in each of the corresponding portfolios
of the Fund.
3. RELATED PARTY TRANSACTIONS
MONY is the legal holder of the assets of the Variable Account. Policy
premiums received from MONY by the Variable Account represent gross policy
premiums recorded by MONY less deductions retained for any premium taxes.
The cost of insurance, administration charges, and, if applicable, deferred
premium taxes are deducted monthly from the cash value of the contract to
compensate MONY. These deductions are treated as contractholder redemptions by
the Variable Account. The amount deducted for all subaccounts for 1995
aggregated $698.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.85 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
32
<PAGE> 35
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1995 consist
of the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of year:
Shares........................................................ 1,888 3,754
Amount........................................................ $ 27,043 $49,597
------- -------
Shares acquired:
Shares........................................................ 0 0
Amount........................................................ $ 0 $ 0
Shares received for reinvestment of dividends:
Shares........................................................ 101 206
Amount........................................................ $ 1,977 $ 3,234
Shares redeemed:
Shares........................................................ 30 69
Amount........................................................ $ 408 $ 869
------- -------
Net change:
Shares........................................................ 71 137
Amount........................................................ $ 1,569 $ 2,365
------- -------
Shares end of year:
Shares........................................................ 1,959 3,891
Amount........................................................ $ 28,612 $51,962
======= =======
</TABLE>
33
<PAGE> 36
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of the
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account S:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account S (comprising, respectively, Equity Income and Diversified
Subaccounts) as of December 31, 1995, the related statements of operations for
the year the ended, and the statements of changes in net assets for each of the
two years in the period then ended. These financial statements are the
responsibility of MONY's management. Our responsibility is to express an opinion
on these financial statements 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 are free of material
misstatements. 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 referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account S as of December 31, 1995, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 19, 1996
34
<PAGE> 37
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 5)........ $783,130 $ 884,798 $30,730,076 $47,528,912 $1,526,225 $91,287,195 $7,477,983
======== ========== =========== =========== ========== =========== ==========
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)................................ $968,409 $1,134,112 $30,626,426 $51,238,915 $1,806,327 $91,287,195 $7,474,168
Amount due from MONY America........ 0 0 251 6,253 0 581,497 29,283
Amount due from MONY Series Fund,
Inc. ............................. 0 0 2,706 52,723 60 236,504 6
-------- ---------- ----------- ----------- ---------- ----------- ----------
Total assets................ 968,409 1,134,112 30,629,383 51,297,891 1,806,387 92,105,196 7,503,457
-------- ---------- ----------- ----------- ---------- ----------- ----------
LIABILITIES
Amount due to MONY America.......... 0 0 2,706 52,723 60 236,504 6
Amount due to MONY Series Fund,
Inc. ............................. 0 0 251 6,253 0 581,497 29,283
-------- ---------- ----------- ----------- ---------- ----------- ----------
Total liabilities........... 0 0 2,957 58,976 60 818,001 29,289
-------- ---------- ----------- ----------- ---------- ----------- ----------
Net assets.......................... $968,409 $1,134,112 $30,626,426 $51,238,915 $1,806,327 $91,287,195 $7,474,168
======== ========== =========== =========== ========== =========== ==========
Net assets consist of:
Contractholders' net payments..... $269,801 $ 299,344 $25,907,740 $38,952,360 $ 690,576 $84,116,631 $7,189,657
Undistributed net investment
income.......................... 152,322 401,085 4,944,176 9,159,909 630,440 7,170,564 195,257
Accumulated net realized gains
(losses) on investments......... 361,007 184,369 (121,840) (583,357) 205,209 0 93,069
Unrealized appreciation
(depreciation) of investments... 185,279 249,314 (103,650) 3,710,003 280,102 0 (3,815)
-------- ---------- ----------- ----------- ---------- ----------- ----------
Net assets.......................... $968,409 $1,134,112 $30,626,426 $51,238,915 $1,806,327 $91,287,195 $7,474,168
======== ========== =========== =========== ========== =========== ==========
Number of units outstanding*........ 37,368 45,391 1,806,518 2,477,673 83,511 6,504,679 679,711
-------- ---------- ----------- ----------- ---------- ----------- ----------
Net asset value per unit
outstanding....................... $ 25.92 $ 24.99 $ 16.95 $ 20.68 $ 21.63 $ 14.03 $ 11.00
======== ========== =========== =========== ========== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
35
<PAGE> 38
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 5)......... $121,132,914 $139,216,581 $ 896,982,250 $ 15,561,552 $13,642,773
============ ============ ============== ============ ============
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)..................... $145,529,920 $145,993,789 $1,109,112,619 $ 16,346,562 $13,786,083
Amount due from Enterprise
Accumulation Trust................. 23,355 9,040 157,318 1,816 299
Amount due from MONY America......... 75,509 27,748 191,594 5,876 82
------------ ------------ -------------- ------------ ------------
Total assets.................... 145,628,784 146,030,577 1,109,461,531 16,354,254 13,786,464
------------ ------------ -------------- ------------ ------------
LIABILITIES
Amount due to Enterprise Accumulation
Trust.............................. 75,509 27,748 191,594 5,876 82
Amount due to MONY America........... 23,355 9,040 157,318 1,816 299
------------ ------------ -------------- ------------ ------------
Total liabilities............... 98,864 36,788 348,912 7,692 381
------------ ------------ -------------- ------------ ------------
Net assets........................... $145,529,920 $145,993,789 $1,109,112,619 $ 16,346,562 $13,786,083
============ ============ ============== ============ ============
Net assets consist of:
Contractholders' net payments...... $102,712,824 $119,642,653 $ 740,486,254 $ 14,693,276 $13,019,850
Undistributed net investment
income.......................... 8,216,372 14,380,408 85,564,180 680,398 524,690
Accumulated net realized gains on
investments..................... 10,203,718 5,193,520 70,931,816 187,878 98,233
Unrealized appreciation of
investments..................... 24,397,006 6,777,208 212,130,369 785,010 143,310
------------ ------------ -------------- ------------ ------------
Net assets........................... $145,529,920 $145,993,789 $1,109,112,619 $ 16,346,562 $13,786,083
============ ============ ============== ============ ============
Number of units outstanding*......... 5,426,511 6,055,472 31,540,233 1,456,982 1,194,315
------------ ------------ -------------- ------------ ------------
Net asset value per unit
outstanding........................ $ 26.82 $ 24.11 $ 35.17 $ 11.22 $ 11.54
============ ============ ============== ============ ============
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
36
<PAGE> 39
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
---------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 5)................. $3,536,160 $1,957,185 $2,136,141 $2,951,202 $32,856,206
========== ========== ========== ========== ===========
Investments in Quest for Value Accumulation
Trust at net asset value (Note 2).......... $3,536,160 $2,072,459 $2,854,428 $3,349,075 $44,843,297
Amount due from Quest for Value Accumulation
Trust...................................... 17 16 0 0 27
Dividends receivable......................... 1,379 770 0 0 0
---------- ---------- ---------- ---------- -----------
Total assets............................ 3,537,556 2,073,245 2,854,428 3,349,075 44,843,324
---------- ---------- ---------- ---------- -----------
LIABILITIES
Amount due to MONY America................... 17 16 0 0 27
---------- ---------- ---------- ---------- -----------
Net assets................................... $3,537,539 $2,073,229 $2,854,428 $3,349,075 $44,843,297
========== ========== ========== ========== ===========
Net assets consist of:
Contractholders' net payments.............. $3,388,926 $1,767,838 $2,055,462 $2,933,451 $31,910,521
Undistributed/(Accumulated) net investment
income (loss)........................... 148,613 152,262 (31,951) (36,333) (418,008)
Accumulated net realized gains on
investments............................. 0 37,855 112,630 54,084 1,363,693
Unrealized appreciation of investments..... 0 115,274 718,287 397,873 11,987,091
---------- ---------- ---------- ---------- -----------
Net assets................................... $3,537,539 $2,073,229 $2,854,428 $3,349,075 $44,843,297
========== ========== ========== ========== ===========
Number of units outstanding*................. 271,019 129,078 106,172 136,744 1,286,294
---------- ---------- ---------- ---------- -----------
Net asset value per unit outstanding......... $ 13.05 $ 16.06 $ 26.88 $ 24.49 $ 34.86
========== ========== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
37
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------- ----------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.................. $ 63,713 $ 58,355 $ 1,707,446 $ 2,761,661 $ 95,512 $ 3,708,654 $ 235,059
Mortality and expense risk
charges (Note 3)............... 12,384 13,437 347,610 518,616 21,644 842,325 40,630
-------- -------- ---------- ---------- -------- ------------ --------
Net investment income............ 51,329 44,918 1,359,836 2,243,045 73,868 2,866,329 194,429
-------- -------- ---------- ---------- -------- ------------ --------
Realized and unrealized gains
(losses) on investments (Note
2):
Proceeds from sales............ 272,020 180,633 7,675,898 11,854,465 259,899 389,648,709 1,482,859
Cost of shares sold............ 182,647 140,972 7,893,627 12,827,357 200,890 389,648,709 1,389,790
-------- -------- ---------- ---------- -------- ------------ --------
Net realized gains (losses) on
investments.................... 89,373 39,661 (217,729) (972,892) 59,009 0 93,069
Net increase (decrease) in
unrealized appreciation of
investments.................... 113,737 211,754 2,334,874 9,104,767 248,851 0 (2,911)
-------- -------- ---------- ---------- -------- ------------ --------
Net realized and unrealized gains
on investments................. 203,110 251,415 2,117,145 8,131,875 307,860 0 90,158
-------- -------- ---------- ---------- -------- ------------ --------
Net increase in net assets
resulting from operations...... $254,439 $296,333 $ 3,476,981 $10,374,920 $381,728 $ 2,866,329 $ 284,587
======== ======== ========== ========== ======== ============ ========
</TABLE>
See notes to financial statements.
38
<PAGE> 41
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income........................... $ 7,642,676 $ 8,716,607 $ 70,753,028 $ 796,201 $ 606,469
Mortality and expense risk charges (Note
3)...................................... 1,351,438 1,669,812 10,671,972 114,579 83,188
----------- ----------- ------------ ---------- --------
Net investment income..................... 6,291,238 7,046,795 60,081,056 681,622 523,281
----------- ----------- ------------ ---------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales..................... 18,490,654 37,009,830 123,710,483 3,734,812 2,006,517
Cost of shares sold..................... 14,370,407 36,737,998 94,893,051 3,546,741 1,908,283
----------- ----------- ------------ ---------- --------
Net realized gains on investments......... 4,120,247 271,832 28,817,432 188,071 98,234
Net increase in unrealized appreciation of
investments............................. 21,768,708 6,498,712 206,163,963 765,785 142,908
----------- ----------- ------------ ---------- --------
Net realized and unrealized gains on
investments............................. 25,888,955 6,770,544 234,981,395 953,856 241,142
----------- ----------- ------------ ---------- --------
Net increase in net assets resulting from
operations.............................. $32,180,193 $13,817,339 $295,062,451 $ 1,635,478 $ 764,423
=========== =========== ============ ========== ========
</TABLE>
See notes to financial statements.
39
<PAGE> 42
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
----------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Dividend income............................... $ 166,236 $ 140,524 $ 11,915 $ 24,232 $ 228,055
Mortality and expense risk charges (Note 3)... 42,087 29,233 34,643 45,598 516,836
---------- ---------- -------- ---------- -----------
Net investment income (loss).................. 124,149 111,291 (22,728) (21,366) (288,781)
---------- ---------- -------- ---------- -----------
Realized and unrealized gains on investments
(Note 2):
Proceeds from sales......................... 3,191,219 1,289,952 718,004 1,656,065 8,065,662
Cost of shares sold......................... 3,191,219 1,249,931 604,108 1,599,533 6,680,543
---------- ---------- -------- ---------- -----------
Net realized gains on investments............. 0 40,021 113,896 56,532 1,385,119
Net increase in unrealized appreciation of
investments................................. 0 174,324 780,175 420,585 13,614,561
---------- ---------- -------- ---------- -----------
Net realized and unrealized gains on
investments................................. 0 214,345 894,071 477,117 14,999,680
---------- ---------- -------- ---------- -----------
Net increase in net assets resulting from
operations.................................. $ 124,149 $ 325,636 $871,343 $ 455,751 $14,710,899
========== ========== ======== ========== ===========
</TABLE>
See notes to financial statements.
40
<PAGE> 43
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------------------
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income........................... $ 51,329 $ 12,588 $ 44,918 $ 47,982 $ 1,359,836
Net realized gains (losses) on investments...... 89,373 36,154 39,661 22,326 (217,729)
Net increase (decrease) in unrealized
appreciation of investments................... 113,737 (41,034) 211,754 (76,424) 2,334,874
-------- ---------- ---------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations................................. 254,439 7,708 296,333 (6,116) 3,476,981
-------- ---------- ---------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of units......... 19,737 59,762 25,913 78,166 6,168,848
Net asset value of units redeemed or used to
meet contract obligations..................... 248,505 135,671 163,157 106,044 5,230,269
-------- ---------- ---------- ---------- -----------
Net increase (decrease) from unit transactions.... (228,768) (75,909) (137,244) (27,878) 938,579
-------- ---------- ---------- ---------- -----------
Net increase (decrease) in net assets............. 25,671 (68,201) 159,089 (33,994) 4,415,560
Net assets beginning of year...................... 942,738 1,010,939 975,023 1,009,017 26,210,866
-------- ---------- ---------- ---------- -----------
Net assets end of year*........................... $968,409 $ 942,738 $1,134,112 $ 975,023 $30,626,426
======== ========== ========== ========== ===========
Units outstanding beginning of year............... 46,927 50,759 51,336 52,872 1,753,781
Units issued during the year...................... 874 2,986 1,242 4,033 382,452
Units redeemed during the year.................... 10,433 6,818 7,187 5,569 329,715
-------- ---------- ---------- ---------- -----------
Units outstanding end of year..................... 37,368 46,927 45,391 51,336 1,806,518
======== ========== ========== ========== ===========
* Includes undistributed net investment income of: $152,322 $ 100,993 $ 401,085 $ 356,167 $ 4,944,176
<CAPTION>
MONY SERIES FUND, INC.
-------------------------------------------
INTERMEDIATE
TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
------------ ---------------------------
FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1995 1994
------------ ------------ ------------
<S> <C> <C> <C>
From operations:
Net investment income........................... $ 1,182,720 $ 2,243,045 $ 2,155,360
Net realized gains (losses) on investments...... (282,740) (972,892) (833,747)
Net increase (decrease) in unrealized
appreciation of investments................... (1,651,723) 9,104,767 (4,797,147)
----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................. (751,743) 10,374,920 (3,475,534)
----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units......... 9,508,436 13,405,984 15,748,446
Net asset value of units redeemed or used to
meet contract obligations..................... 8,268,006 8,681,500 21,824,839
----------- ----------- -----------
Net increase (decrease) from unit transactions.... 1,240,430 4,724,484 (6,076,393)
----------- ----------- -----------
Net increase (decrease) in net assets............. 488,687 15,099,404 (9,551,927)
Net assets beginning of year...................... 25,722,179 36,139,511 45,691,438
----------- ----------- -----------
Net assets end of year*........................... $26,210,866 $51,238,915 $36,139,511
=========== =========== ===========
Units outstanding beginning of year............... 1,673,790 2,245,807 2,631,575
Units issued during the year...................... 629,461 714,746 943,142
Units redeemed during the year.................... 549,470 482,880 1,328,910
----------- ----------- -----------
Units outstanding end of year..................... 1,753,781 2,477,673 2,245,807
=========== =========== ===========
* Includes undistributed net investment income of: $ 3,584,340 $ 9,159,909 $ 6,916,864
</TABLE>
See notes to financial statements.
41
<PAGE> 44
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.--(CONTINUED)
----------------------------------------------------------------------------------------
GOVERNMENT
SECURITIES
SUBACCOUNT
----------------------------
DIVERSIFIED MONEY MARKET FOR THE
SUBACCOUNT SUBACCOUNT PERIOD
--------------------------- --------------------------- NOVEMBER 22,
FOR THE FOR THE FOR THE FOR THE FOR THE 1994**
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income................ $ 73,868 $ 34,425 $ 2,866,329 $ 1,352,440 $ 194,429 $ 828
Net realized gains (losses) on
investments....................... 59,009 19,183 0 0 93,069 0
Net increase (decrease) in unrealized
appreciation of investments....... 248,851 (58,060) 0 0 (2,911) (904)
---------- ---------- ----------- ----------- ---------- --------
Net increase (decrease) in net assets
resulting from operations............ 381,728 (4,452) 2,866,329 1,352,440 284,587 (76)
---------- ---------- ----------- ----------- ---------- --------
From unit transactions:
Net proceeds from the issuance of
units............................. 73,106 102,471 387,429,226 321,019,860 7,481,232 174,231
Net asset value of units redeemed or
used to meet contract
obligations....................... 223,895 143,496 370,351,387 299,495,468 465,806 0
---------- ---------- ----------- ----------- ---------- --------
Net increase (decrease) from unit
transactions......................... (150,789) (41,025) 17,077,839 21,524,392 7,015,426 174,231
---------- ---------- ----------- ----------- ---------- --------
Net increase (decrease) in net
assets............................... 230,939 (45,477) 19,944,168 22,876,832 7,300,013 174,155
Net assets beginning of year........... 1,575,388 1,620,865 71,343,027 48,466,195 174,155 0
---------- ---------- ----------- ----------- ---------- --------
Net assets end of year*................ $1,806,327 $1,575,388 $ 91,287,195 $ 71,343,027 $7,474,168 $ 174,155
========== ========== =========== =========== ========== ========
Units outstanding beginning of year.... 90,907 93,312 5,304,884 3,698,103 17,347 0
Units issued during the year........... 3,710 5,848 28,090,440 24,225,370 706,241 17,347
Units redeemed during the year......... 11,106 8,253 26,890,645 22,618,589 43,877 0
---------- ---------- ----------- ----------- ---------- --------
Units outstanding end of year.......... 83,511 90,907 6,504,679 5,304,884 679,711 17,347
========== ========== =========== =========== ========== ========
- ---------------
* Includes undistributed net
investment income of: $ 630,440 $ 556,572 $ 7,170,564 $ 4,304,235 $ 195,257 $ 828
</TABLE>
** Commencement of operations.
See notes to financial statements.
42
<PAGE> 45
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------- ---------------------------- ----------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ -------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)...... $ 6,291,238 $ 835,913 $ 7,046,795 $ 4,864,392 $ 60,081,056 $ 17,502,663
Net realized gains (losses) on
investments..................... 4,120,247 2,580,938 271,832 2,054,819 28,817,432 20,641,817
Net increase (decrease) in
unrealized appreciation of
investments..................... 21,768,708 (1,808,298) 6,498,712 (8,145,294) 206,163,963 (32,810,120)
------------ ----------- ------------ ------------- ------------- ------------
Net increase (decrease) in net
assets resulting from
operations........................ 32,180,193 1,608,553 13,817,339 (1,226,083) 295,062,451 5,334,360
------------ ----------- ------------ ------------ -------------- ------------
From unit transactions:
Net proceeds from the issuance of
units........................... 51,339,101 29,386,142 35,366,448 66,054,130 304,419,702 237,090,207
Net asset value of units redeemed
or used to meet contract
obligations..................... 13,768,394 11,715,014 31,951,502 29,598,056 94,036,492 92,203,422
------------ ----------- ------------ ------------ -------------- ------------
Net increase from unit
transactions...................... 37,570,707 17,671,128 3,414,946 36,456,074 210,383,210 144,886,785
------------ ----------- ------------ ------------- -------------- ------------
Net increase in net assets......... 69,750,900 19,279,681 17,232,285 35,229,991 505,445,661 150,221,145
Net assets beginning of year....... 75,779,020 56,499,339 128,761,504 93,531,513 603,666,958 453,445,813
------------ ----------- ------------ ------------- -------------- ------------
Net assets end of year*............ $145,529,920 $75,779,020 $145,993,789 $ 128,761,504 $1,109,112,619 $603,666,958
============ =========== ============ ============ ============== ============
Units outstanding beginning of
year.............................. 3,865,965 2,956,822 5,924,266 4,249,653 24,924,610 18,964,250
Units issued during the year....... 2,143,227 1,509,820 1,572,208 3,073,217 9,733,146 9,679,254
Units redeemed during the year..... 582,681 600,677 1,441,002 1,398,604 3,117,523 3,718,894
------------ ----------- ------------ ------------- -------------- ------------
Units outstanding end of year...... 5,426,511 3,865,965 6,055,472 5,924,266 31,540,233 24,924,610
============ =========== ============ ============= ============== ============
- ---------------
* Includes undistributed net
investment income (loss) of: $ 8,216,372 $ 1,925,134 $ 14,380,408 $ 7,333,613 $ 85,564,180 $ 25,483,124
** Commencement of operations.
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 23, NOVEMBER 28,
FOR THE 1994** FOR THE 1994**
YEAR ENDED THROUGH YEAR ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)...... $ 681,622 ($ 1,224) $ 523,281 $ 1,409
Net realized gains (losses) on
investments..................... 188,071 (193) 98,234 (1)
Net increase (decrease) in
unrealized appreciation of
investments..................... 765,785 19,225 142,908 402
----------- ---------- ----------- ---------
Net increase (decrease) in net
assets resulting from
operations........................ 1,635,478 17,808 764,423 1,810
----------- ---------- ----------- ---------
From unit transactions:
Net proceeds from the issuance of
units........................... 14,604,230 2,044,932 13,314,491 268,256
Net asset value of units redeemed
or used to meet contract
obligations..................... 1,955,796 90 562,893 4
----------- ---------- ----------- ---------
Net increase from unit
transactions...................... 12,648,434 2,044,842 12,751,598 268,252
----------- ---------- ----------- ---------
Net increase in net assets......... 14,283,912 2,062,650 13,516,021 270,062
Net assets beginning of year....... 2,062,650 0 270,062 0
----------- ---------- ----------- ---------
Net assets end of year*............ $16,346,562 $2,062,650 $13,786,083 $270,062
=========== ========== =========== =========
Units outstanding beginning of
year.............................. 208,202 0 26,870 0
Units issued during the year....... 1,442,749 208,211 1,218,090 26,870
Units redeemed during the year..... 193,969 9 50,645 0
----------- ---------- ----------- ---------
Units outstanding end of year...... 1,456,982 208,202 1,194,315 26,870
=========== ========== =========== =========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 680,398 ($ 1,224) $ 524,690 $ 1,409
** Commencement of operations.
</TABLE>
See notes to financial statements.
43
<PAGE> 46
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
---------------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- -------------
FOR THE PERIOD FOR THE PERIOD
SEPTEMBER 17, SEPTEMBER 17,
FOR THE 1994** FOR THE 1994** FOR THE
YEAR ENDED THROUGH YEAR ENDED THROUGH YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995
------------- -------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ $ 124,149 $ 24,464 $ 111,291 $ 40,971 ($ 22,728)
Net realized gains (losses) on
investments............................... 0 0 40,021 (2,166) 113,896
Net increase (decrease) in unrealized
appreciation of investments............... 0 0 174,324 (59,050) 780,175
---------- ---------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations................... 124,149 24,464 325,636 (20,245) 871,343
---------- ---------- ----------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of units..... 3,607,557 3,150,273 213,153 2,975,062 122,424
Net asset value of units redeemed or used to
meet contract obligations................. 3,138,264 230,640 1,262,489 157,888 680,113
---------- ---------- ----------- ---------- ----------
Net increase (decrease) from unit
transactions................................ 469,293 2,919,633 (1,049,336) 2,817,174 (557,689)
---------- ---------- ----------- ---------- ----------
Net increase (decrease) in net assets......... 593,442 2,944,097 (723,700) 2,796,929 313,654
Net assets beginning of year.................. 2,944,097 0 2,796,929 0 2,540,774
---------- ---------- ----------- ---------- ----------
Net assets end of year*....................... $ 3,537,539 $2,944,097 $ 2,073,229 $2,796,929 $ 2,854,428
========== ========== =========== ========== ==========
Units outstanding beginning of year........... 234,062 0 198,239 0 129,693
Units issued during the year.................. 282,367 252,462 13,880 209,397 5,049
Units redeemed during the year................ 245,410 18,400 83,041 11,158 28,570
---------- ---------- ----------- ---------- ----------
Units outstanding end of year................. 271,019 234,062 129,078 198,239 106,172
========== ========== =========== ========== ==========
- ---------------
* Includes undistributed net investment
income (loss) of: $ 148,613 $ 24,464 $ 152,262 $ 40,971 ($ 31,951)
** Commencement of operations.
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
----------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ----------------------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
SEPTEMBER 17, SEPTEMBER 17, SEPTEMBER 17,
1994** FOR THE 1994** FOR THE 1994**
THROUGH YEAR ENDED THROUGH YEAR ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1995 1994 1995 1994
-------------- ------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ ($ 9,223) ($ 21,366) ($ 14,967) ($ 288,781) ($ 129,227)
Net realized gains (losses) on
investments............................... (1,266) 56,532 (2,448) 1,385,119 (21,426)
Net increase (decrease) in unrealized
appreciation of investments............... (61,888) 420,585 (22,712) 13,614,561 (1,627,470)
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations................... (72,377) 455,751 (40,127) 14,710,899 (1,778,123)
---------- ----------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units..... 2,631,427 185,178 4,342,410 2,329,894 37,312,175
Net asset value of units redeemed or used to
meet contract obligations................. 18,276 1,530,650 63,487 7,328,456 403,092
---------- ----------- ---------- ----------- -----------
Net increase (decrease) from unit
transactions................................ 2,613,151 (1,345,472) 4,278,923 (4,998,562) 36,909,083
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net assets......... 2,540,774 (889,721) 4,238,796 9,712,337 35,130,960
Net assets beginning of year.................. 0 4,238,796 0 35,130,960 0
---------- ----------- ---------- ----------- -----------
Net assets end of year*....................... $2,540,774 $ 3,349,075 $4,238,796 $44,843,297 $ 35,130,960
========== =========== ========== =========== ===========
Units outstanding beginning of year........... 0 197,050 0 1,449,807 0
Units issued during the year.................. 130,630 7,680 200,054 79,150 1,466,229
Units redeemed during the year................ 937 67,986 3,004 242,663 16,422
---------- ----------- ---------- ----------- -----------
Units outstanding end of year................. 129,693 136,744 197,050 1,286,294 1,449,807
========== =========== ========== =========== ===========
- ---------------
* Includes undistributed net investment
income (loss) of: ($ 9,223) ($ 36,333) ($ 14,967) ($ 418,008) ($ 129,227)
** Commencement of operations.
</TABLE>
See notes to financial statements.
44
<PAGE> 47
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account A (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support flexible payment variable annuity policies.
These policies are issued by MONY America, which is a wholly-owned subsidiary of
The Mutual Life Insurance Company of New York ("MONY"). MONY America is
currently taxed as a life insurance company and will include the Variable
Account's operations in its tax return. MONY America does not expect, based upon
current tax law, to incur any income tax burden upon the earnings or realized
capital gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for federal
income tax purposes.
There are currently seventeen subaccounts within the Variable Account, and
each invests only in a corresponding portfolio of the MONY Series Fund, Inc.
(the "Fund"), the Enterprise Accumulation Trust ("Enterprise") or the Quest for
Value Accumulation Trust ("Quest") (collectively, the "Funds"). The Funds are
registered under the 1940 Act as open end, diversified, management investment
companies.
A full presentation of the related financial statements and footnotes of
the Fund, Enterprise and Quest are contained on pages 66 to 128; 129 to 174; and
175 to 230; respectively, and should be read in conjunction with these financial
statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios is stated at
the net asset value of each portfolio. Except for the Money Market Portfolio,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Funds. For the Money Market Portfolio,
the net asset values are based on the amortized cost of the securities held
which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal holder of the assets of the Variable Account.
Purchase payments received from MONY America by the Variable Account
represent gross purchase payments recorded by MONY America less deductions
retained for any premium taxes.
A periodic deduction is made from the cash value of the contract for the
Annual Contract Charge. The deduction is for the expenses of administration and
is treated by the Variable Account as a contractholder redemption. The amount
deducted from all subaccounts for 1995 was $1,330,841.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 1.25 percent of aggregate
average daily net assets. As investment adviser to the Fund, it receives amounts
paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. CHANGE IN ADVISORY ARRANGEMENT
Quest offered its shares to variable annuity separate accounts of the
Mutual Life Insurance Company of New York ("MONY") and its affiliate, MONY Life
Insurance Company of America as a funding vehicle for the MONYMaster and
ValueMaster variable annuity contracts issued by them. Quest also offered its
shares
45
<PAGE> 48
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. CHANGE IN ADVISORY ARRANGEMENT (CONTINUED)
to variable annuity separate accounts of Provident Mutual Life Insurance Company
of Philadelphia and its affiliate, Provident Mutual Life and Annuity Company of
America (together, the "PM Companies") as a funding vehicle for certain variable
annuity contracts issued by these insurers. Owners of ValueMaster contracts and
contracts issued by the PM Companies are referred to herein as "non-MONYMaster"
contract owners.
On May 26, 1994, the Board of Trustees (the "Trustees") of Quest approved
new advisory arrangements for the Equity, Small Cap and Managed Portfolios of
Quest. Such advisory arrangements were approved by the shareholders of each
portfolio at a special meeting called for such purpose (the "Special Meeting").
Under the new arrangements, Enterprise became the investment adviser for the
three portfolios, and Quest for Value Advisors ("Quest Advisors"), the
portfolios' former investment adviser, became sub-adviser to these portfolios,
subject to the oversight of Enterprise. The two firms are rendering these
services at the same aggregate annual advisory fee rate as is currently in
effect (.60% of average daily net assets). The current advisory arrangements
were not changed for the Bond and Money Market Portfolios of Quest.
In connection with the implementation of new advisory arrangements as
described above, the assets of the Equity, Small Cap, Managed, Bond and Money
Market Portfolios of Quest supporting the non-MONYMaster contracts were
transferred on a pro-rata basis to substantially identical corresponding
portfolios of a newly-formed management investment company advised by Quest
Advisors, the new Quest for Value Accumulation Trust (the "New Quest"). The
division of net assets were in accordance with relative net asset value of the
shares of each portfolio of Quest attributable to MONYMaster contract owners and
non-MONYMaster contract owners, respectively. Shares of each portfolio
attributable to non-MONYMaster contract owners were redeemed in kind at net
asset value without a sales charge, and such assets were reinvested in the New
Quest by using such assets to purchase an equivalent number of shares of the New
Quest.
The assets transferred to New Quest were as follows:
<TABLE>
<S> <C>
Equity.......................................................... $ 2,591,985
Small Cap....................................................... 4,235,745
Managed......................................................... 37,076,482
Bond............................................................ 2,974,135
Money Market.................................................... 2,780,980
</TABLE>
This transaction resulted in an adjustment to the basis of the net assets
reinvested in New Quest. As a result, the Equity, Small Cap, Managed and Bond
Subaccounts recognized unrealized appreciation/ (depreciation) of $443,166,
$235,611, $6,460,220 and ($348,510), respectively, on September 16, 1994 as a
realized gain/(loss) on the net assets redeemed.
46
<PAGE> 49
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENTS
Investment In MONY Series Fund, Inc. at cost, at December 31, 1995 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.......................... 45,786 62,783 2,688,294 3,451,720 119,893 71,343,027 18,313
Amount.......................... $871,196 $937,463 $28,649,390 $41,534,275 $ 1,544,137 $ 71,343,027 $ 175,059
-------- -------- ----------- ----------- ---------- ------------ ----------
Shares acquired:
Shares.......................... 1,285 1,718 773,868 1,306,665 5,793 405,884,223 836,011
Amount.......................... $ 30,868 $ 29,952 $ 8,266,867 $16,060,333 $ 87,466 $405,884,223 $8,457,655
Shares received for reinvestment
of dividends:
Shares.......................... 2,537 2,976 161,537 214,415 6,076 3,708,654 23,022
Amount.......................... $ 63,713 $ 58,355 $ 1,707,446 $ 2,761,661 $ 95,512 $ 3,708,654 $ 235,059
Shares redeemed:
Shares.......................... 11,042 9,644 726,213 994,624 16,856 389,648,709 145,301
Amount.......................... $182,647 $140,972 $ 7,893,627 $12,827,357 $ 200,890 $389,648,709 $1,389,790
-------- -------- ----------- ----------- ---------- ------------ ----------
Net change:
Shares.......................... (7,220) (4,950) 209,192 526,456 (4,987) 19,944,168 713,732
Amount.......................... ($88,066) ($ 52,665) $ 2,080,686 $ 5,994,637 ($ 17,912) $ 19,944,168 $7,302,924
-------- -------- ----------- ----------- ---------- ------------ ----------
Shares end of year:
Shares.......................... 38,566 57,833 2,897,486 3,978,176 114,906 91,287,195 732,045
Amount.......................... $783,130 $884,798 $30,730,076 $47,528,912 $ 1,526,225 $ 91,287,195 $7,477,983
======== ======== =========== =========== ========== ============ ==========
</TABLE>
Investment in Enterprise Accumulation Trust at cost, at December 31, 1995
consists of the following:
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY SMALL CAP MANAGED GROWTH HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares..................... 4,179,758 7,332,660 28,994,571 416,697 54,239
Amount..................... $ 73,150,722 $128,483,008 $597,700,552 $ 2,043,425 $ 269,660
------------ ------------ ------------ ----------- -----------
Shares acquired:
Shares..................... 2,548,366 2,177,758 12,528,986 3,194,145 2,807,573
Amount..................... $ 54,709,923 $ 38,754,964 $323,421,721 $ 16,268,667 $14,674,927
Shares received for
reinvestment of dividends:
Shares..................... 368,281 498,088 2,882,791 146,981 114,893
Amount..................... $ 7,642,676 $ 8,716,607 $ 70,753,028 $ 796,201 $ 606,469
Shares redeemed:
Shares..................... 863,860 2,108,409 4,879,882 725,066 380,456
Amount..................... $ 14,370,407 $ 36,737,998 $ 94,893,051 $ 3,546,741 $ 1,908,283
------------ ------------ ------------ ----------- -----------
Net change:
Shares..................... 2,052,787 567,437 10,531,895 2,616,060 2,542,010
Amount..................... $ 47,982,192 $ 10,733,573 $299,281,698 $ 13,518,127 $13,373,113
------------ ------------ ------------ ----------- -----------
Shares end of year:
Shares..................... 6,232,545 7,900,097 39,526,466 3,032,757 2,596,249
Amount..................... $121,132,914 $139,216,581 $896,982,250 $ 15,561,552 $13,642,773
============ ============ ============ =========== ===========
</TABLE>
47
<PAGE> 50
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENTS (CONTINUED)
Investment in Quest for Value Accumulation Trust at cost, at December 31,
1995 consists of the following:
<TABLE>
<CAPTION>
MONEY MARKET BOND EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.......................... 2,944,097 304,014 140,219 243,889 1,686,556
Amount.......................... $2,944,097 $2,855,979 $2,602,662 $ 4,261,508 $36,758,430
------------ ------------ ------------ ----------- -----------
Shares acquired:
Shares.......................... 3,618,425 21,952 5,648 14,352 97,695
Amount.......................... $3,618,425 $ 211,383 $ 125,672 $ 264,995 $ 2,550,264
Shares received for reinvestment
of dividends:
Shares.......................... 164,857 14,459 613 1,424 10,029
Amount.......................... $ 164,857 $ 139,754 $ 11,915 $ 24,232 $ 228,055
Shares redeemed:
Shares.......................... 3,191,219 132,971 32,531 91,454 306,447
Amount.......................... $3,191,219 $1,249,931 $ 604,108 $ 1,599,533 $ 6,680,543
------------ ------------ ------------ ----------- ------------
Net change:
Shares.......................... 592,063 (96,560) (26,270) (75,678) (198,723)
Amount.......................... $ 592,063 ($ 898,794) ($ 466,521) ($1,310,306) ($ 3,902,224)
------------ ------------ ------------ ----------- ------------
Shares end of year:
Shares.......................... 3,536,160 207,454 113,949 168,211 1,487,833
Amount.......................... $3,536,160 $1,957,185 $2,136,141 $2,951,202 $32,856,206
============ ============ ============ =========== ============
</TABLE>
48
<PAGE> 51
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account A:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account A (comprising, respectively, the MONY Series Fund,
Inc.'s Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified, Money Market and Government Securities Subaccounts; the Enterprise
Accumulation Trust's Equity, Small Cap, Managed (formerly, three of the
subaccounts constituting the Quest for Value Accumulation Trust), International
Growth and High Yield Bond Subaccounts; and the Quest for Value Accumulation
Trust's Money Market, Bond, Equity, Small Cap, and Managed Subaccounts as of
December 31, 1995, the related statements of operations for the year then ended
and the statements of changes in the net assets for each of the two years in the
period then ended for all of the subaccounts except MONY Series Fund Inc.'s
Government Securities Subaccount for which the period is for the year ended
December 31, 1995 and for the period from November 22, 1994 (commencement of
operations) to December 31, 1994; the Enterprise Accumulation Trust's
International Growth and High Yield Bond Subaccounts for which the period is for
the year ended December 31, 1995 and for the period from November 23, 1994 and
November 28, 1994, respectively, (commencements of operations) to December 31,
1994; and the Quest for Value Accumulation Trust's Subaccounts for which the
period is for the year ended December 31, 1995 and for the period from September
17, 1994 (commencement of operations) to December 31, 1994. These financial
statements are the responsibility of MONY America's management. Our
responsibility is to express an opinion on these financial statements 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 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 referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account A as of December 31,
1995, and the results of their operations and the changes in their net assets
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 19, 1996
49
<PAGE> 52
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 5)..... $149,239 $190,930 $6,638,222 $ 9,666,493 $217,223 $17,196,047 $923,948
======== ======== ========== =========== ======== =========== ========
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)............................. $210,036 $249,805 $6,621,329 $10,317,775 $254,933 $17,196,047 $914,216
Amount due from MONY............. 0 0 0 303 0 101,067 0
Amount due from MONY Series Fund,
Inc. .......................... 0 0 0 23 0 7 0
-------- -------- ---------- ----------- -------- ----------- --------
Total assets............ 210,036 249,805 6,621,329 10,318,101 254,933 17,297,121 914,216
-------- -------- ---------- ----------- -------- ----------- --------
LIABILITIES
Amount due to MONY............... 0 0 0 23 0 7 0
Amount due to MONY Series
Fund, Inc. .................... 0 0 0 303 0 101,067 0
-------- -------- ---------- ----------- -------- ----------- --------
Total liabilities....... 0 0 0 326 0 101,074 0
-------- -------- ---------- ----------- -------- ----------- --------
Net assets....................... $210,036 $249,805 6,621,329 10,317,775 254,933 17,196,047 914,216
======== ======== ========== =========== ======== =========== ========
Net assets consist of:
Contractholders' net
payments..................... $ 67,208 $ 42,076 $5,219,301 $ 6,989,824 $ 69,918 $15,735,193 $885,394
Undistributed net investment
income....................... 32,493 100,358 1,346,640 2,300,661 100,496 1,460,854 24,958
Accumulated net realized gains
on investments............... 49,538 48,496 72,281 376,008 46,809 0 13,596
Unrealized appreciation
(depreciation) of
investments.................. 60,797 58,875 (16,893) 651,282 37,710 0 (9,732)
-------- -------- ---------- ----------- -------- ----------- --------
Net assets....................... $210,036 $249,805 $6,621,329 $10,317,775 $254,933 $17,196,047 $914,216
======== ======== ========== =========== ======== =========== ========
Number of units outstanding*..... 8,091 10,336 398,283 495,169 12,152 1,227,811 83,571
-------- -------- ---------- ----------- -------- ----------- --------
Net asset value per unit
outstanding.................... $ 25.96 $ 24.17 $ 16.62 $ 20.84 $ 20.98 $ 14.01 $ 10.94
======== ======== ========== =========== ======== =========== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
50
<PAGE> 53
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 5).............. $17,549,548 $18,570,563 $119,918,497 $1,795,214 $1,055,403
=========== =========== ============ ========== ==========
Investments in Enterprise Accumulation
Trust at net asset value (Note 2)....... $21,419,650 $19,422,970 $149,533,008 $1,874,221 $1,067,865
Amount due from MONY...................... 4,423 5,071 61,201 824 19,300
Amount due from Enterprise Accumulation
Trust................................... 25 46 2,828 4 0
----------- ----------- ------------ ---------- ----------
Total assets.................... 21,424,098 19,428,087 149,597,037 1,875,049 1,087,165
----------- ----------- ------------ ---------- ----------
LIABILITIES
Amount due to MONY........................ 25 46 2,828 4 0
Amount due to Enterprise Accumulation
Trust................................... 4,423 5,071 61,201 824 19,300
----------- ----------- ------------ ---------- ----------
Total liabilities............... 4,448 5,117 64,029 828 19,300
----------- ----------- ------------ ---------- ----------
Net assets................................ $21,419,650 $19,422,970 $149,533,008 $1,874,221 $1,067,865
=========== =========== ============ ========== ==========
Net assets consist of:
Contractholders' net payments........... $14,336,028 $15,842,399 $ 93,565,212 $1,697,196 $1,002,329
Undistributed net investment income..... 1,339,019 1,836,130 12,761,788 80,878 43,560
Accumulated net realized gains on
investments.......................... 1,874,501 892,034 13,591,497 17,140 9,514
Unrealized appreciation of
investments.......................... 3,870,102 852,407 29,614,511 79,007 12,462
----------- ----------- ------------ ---------- ----------
Net assets................................ $21,419,650 $19,422,970 $149,533,008 $1,874,221 $1,067,865
=========== =========== ============ ========== ==========
Number of units outstanding*.............. 798,552 807,452 4,253,824 167,074 92,358
----------- ----------- ------------ ---------- ----------
Net asset value per unit outstanding...... $ 26.82 $ 24.05 $ 35.15 $ 11.22 $ 11.56
=========== =========== ============ ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
51
<PAGE> 54
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
---------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 5)............ $437,924 $783,901 $224,035 $392,188 $ 8,074,354
======== ======== ======== =========== ===========
Investments in Quest for Value
Accumulation Trust at net asset value
(Note 2).............................. $437,924 $831,844 $294,259 $450,059 $11,058,091
Dividends receivable.................... 172 309 0 0 0
Amount due from Quest for Value
Accumulation Trust.................... 4,001 0 0 0 0
-------- -------- -------- ---------- -----------
Total assets.................. 442,097 832,153 294,259 450,059 11,058,091
-------- -------- -------- ---------- -----------
LIABILITIES
Amount due to MONY...................... 4,001 0 0 0 0
-------- -------- -------- ---------- -----------
Net assets.............................. $438,096 $832,153 $294,259 $450,059 $11,058,091
======== ======== ======== ========== ===========
Net assets consist of:
Contractholders' net payments......... $416,813 $728,554 $222,914 $392,624 $ 8,078,128
Undistributed/(Accumulated) net
investment income (loss)........... 21,283 52,173 (2,951) (4,207) (98,904)
Accumulated net realized gains on
investments........................ 0 3,483 4,072 3,771 95,130
Unrealized appreciation of
investments........................ 0 47,943 70,224 57,871 2,983,737
-------- -------- -------- ---------- -----------
Net assets.............................. $438,096 $832,153 $294,259 $450,059 $11,058,091
======== ======== ======== ========== ===========
Number of units outstanding *........... 33,665 51,825 10,944 18,419 317,313
-------- -------- -------- ---------- -----------
Net asset value per unit outstanding.... $ 13.01 $ 16.06 $ 26.89 $ 24.43 $ 34.85
======== ======== ======== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
52
<PAGE> 55
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................... $ 13,818 $ 12,854 $369,082 $ 557,081 $ 13,480 $ 691,256 $ 29,095
Mortality and expense risk charges
(Note 3)........................ 2,294 2,890 76,517 110,129 3,597 157,003 4,267
------- ------- ---------- ---------- -------- -------- --------
Net investment income............. 11,524 9,964 292,565 446,952 9,883 534,253 24,828
------- ------- ---------- ---------- -------- -------- --------
Realized and unrealized gains
(losses) on investments (Note
2):
Proceeds from sales............. 15,648 44,280 1,472,571 1,526,848 119,941 45,587,526 296,620
Cost of shares sold............. 9,153 34,705 1,498,048 1,529,229 100,700 45,587,526 283,024
------- ------- ---------- ---------- -------- -------- --------
Net realized gains (losses) on
investments..................... 6,495 9,575 (25,477) (2,381) 19,241 0 13,596
Net increase (decrease) in
unrealized appreciation of
investments..................... 27,822 43,846 502,043 1,758,079 34,672 0 (9,571)
------- ------- ---------- ---------- -------- -------- --------
Net realized and unrealized gains
on investments.................. 34,317 53,421 476,566 1,755,698 53,913 0 4,025
------- ------- ---------- ---------- -------- -------- --------
Net increase in net assets
resulting from operations....... $ 45,841 $ 63,385 $769,131 $2,202,650 $ 63,796 $ 534,253 $ 28,853
======= ======= ========== ========== ======== ======== ========
</TABLE>
See notes to financial statements.
53
<PAGE> 56
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income............................... $1,189,471 $1,110,701 $ 9,739,464 $ 92,801 $ 49,428
Mortality and expense risk charges (Note 3)... 211,683 215,615 1,487,428 11,801 6,790
---------- ---------- ----------- -------- -------
Net investment income......................... 977,788 895,086 8,252,036 81,000 42,638
---------- ---------- ----------- -------- -------
Realized and unrealized gains on investments
(Note 2):
Proceeds from sales......................... 3,413,484 3,438,959 17,547,549 286,657 142,981
Cost of shares sold......................... 2,710,441 3,288,884 13,329,046 269,059 133,467
---------- ---------- ----------- -------- -------
Net realized gains on investments............. 703,043 150,075 4,218,503 17,598 9,514
Net increase in unrealized appreciation of
investments................................. 3,414,730 785,984 28,860,483 76,868 11,925
---------- ---------- ----------- -------- -------
Net realized and unrealized gains on
investments................................. 4,117,773 936,059 33,078,986 94,466 21,439
---------- ---------- ----------- -------- -------
Net increase in net assets resulting from
operations.................................. $5,095,561 $1,831,145 $41,331,022 $ 175,466 $ 64,077
========== ========== =========== ======== =======
</TABLE>
See notes to financial statements.
54
<PAGE> 57
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
--------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income............................... $ 22,791 $ 50,422 $ 982 $ 2,460 $ 50,106
Mortality and expense risk charges (Note 3)... 5,745 10,545 3,166 5,398 120,855
-------- -------- ------- ------- ----------
Net investment income (loss).................. 17,046 39,877 (2,184) (2,938) (70,749)
-------- -------- ------- ------- ----------
Realized and unrealized gains on investments
(Note 2):
Proceeds from sales......................... 500,543 151,115 24,186 67,422 620,204
Cost of shares sold......................... 500,543 147,491 20,102 63,599 518,771
-------- -------- ------- ------- ----------
Net realized gains on investments............. 0 3,624 4,084 3,823 101,433
Net increase in unrealized appreciation of
investments................................. 0 66,019 75,352 58,016 3,336,819
-------- -------- ------- ------- ----------
Net realized and unrealized gains on
investments................................. 0 69,643 79,436 61,839 3,438,252
-------- -------- ------- ------- ----------
Net increase in net assets resulting from
operations.................................. $ 17,046 $109,520 $ 77,252 $ 58,901 $3,367,503
======== ======== ======= ======= ==========
</TABLE>
See notes to financial statements.
55
<PAGE> 58
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ----------
1995 1994 1995 1994 1995
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income................................................... $ 11,524 $ 2,161 $ 9,964 $ 11,145 $ 292,565
Net realized gains (losses) on investments.............................. 6,495 8,883 9,575 5,284 (25,477)
Net increase (decrease) in unrealized appreciation of investments....... 27,822 (10,106) 43,846 (17,480) 502,043
-------- -------- -------- -------- -----------
Net increase (decrease) in net assets resulting from operations........... 45,841 938 63,385 (1,051) 769,131
-------- -------- -------- -------- -----------
From unit transactions:
Net proceeds from the issuance of units................................. 14,140 931 0 1,308 1,002,924
Net asset value of units redeemed or used to meet contract obligations.. 13,354 17,715 41,390 25,568 993,119
-------- -------- -------- -------- -----------
Net increase (decrease) from unit transactions............................ 786 (16,784) (41,390) (24,260) 9,805
-------- -------- -------- -------- -----------
Net increase (decrease) in net assets..................................... 46,627 (15,846) 21,995 (25,311) 778,936
Net assets beginning of year.............................................. 163,409 179,255 227,810 253,121 5,842,393
-------- -------- -------- -------- -----------
Net assets end of year*................................................... $210,036 $163,409 $249,805 $227,810 $6,621,329
======== ======== ======== ======== ===========
Units outstanding beginning of year....................................... 8,121 8,985 12,401 13,713 398,645
Units issued during the year.............................................. 602 43 0 69 62,985
Units redeemed during the year............................................ 632 907 2,065 1,381 63,347
-------- -------- -------- -------- -----------
Units outstanding end of year............................................. 8,091 8,121 10,336 12,401 398,283
======== ======== ======== ======== ===========
- ---------------
*Includes undistributed net investment
income of: $ 32,493 $ 20,969 $100,358 $ 90,394 $1,346,640
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------
INTERMEDIATE
TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
------------ -------------------------
1994 1995 1994
---------- ----------- -----------
<S> <C> <C> <C>
From operations:
Net investment income.................................................... $ 267,069 $ 446,952 $ 466,439
Net realized gains (losses) on investments............................... (36,270) (2,381) 23,548
Net increase (decrease) in unrealized appreciation of investments........ (390,623) 1,758,079 (1,185,741)
----------- ------------ ------------
Net increase (decrease) in net assets resulting from operations............ (159,824) 2,202,650 (695,754)
----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of units.................................. 2,137,359 1,593,024 2,625,849
Net asset value of units redeemed or used to meet contract obligations... 1,484,343 1,201,141 2,942,799
----------- ------------ ------------
Net increase (decrease) from unit transactions............................. 653,016 391,883 (316,950)
----------- ------------ ------------
Net increase (decrease) in net assets...................................... 493,192 2,594,533 (1,012,704)
Net assets beginning of year............................................... 5,349,201 7,723,242 8,735,946
----------- ------------ ------------
Net assets end of year*.................................................... $5,842,393 $10,317,775 $ 7,723,242
=========== ============ ============
Units outstanding beginning of year........................................ 354,965 476,335 499,364
Units issued during the year............................................... 144,778 86,051 156,210
Units redeemed during the year............................................. 101,098 67,217 179,239
----------- ------------ ------------
Units outstanding end of year.............................................. 398,645 495,169 476,335
=========== ============ ============
- ---------------
*Includes undistributed net investment
income of: $1,054,075 $ 2,300,661 $ 1,853,709
</TABLE>
See notes to financial statements.
56
<PAGE> 59
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
---------------------------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............................................. $ 9,883 $ 5,772 $ 534,253 $ 232,930
Net realized gains on investments................................. 19,241 4,941 0 0
Net increase (decrease) in unrealized appreciation of
investments..................................................... 34,672 (11,623) 0 0
-------- -------- ----------- -----------
Net increase (decrease) in net assets resulting from operations..... 63,796 (910) 534,253 232,930
-------- -------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units........................... 26,476 8,628 45,186,737 42,507,931
Net asset value of units redeemed or used to meet contract
obligations..................................................... 116,344 47,110 40,234,100 39,141,870
-------- -------- ----------- -----------
Net increase (decrease) from unit transactions...................... (89,868) (38,482) 4,952,637 3,366,061
-------- -------- ----------- -----------
Net increase (decrease) in net assets............................... (26,072) (39,392) 5,486,890 3,598,991
Net assets beginning of year........................................ 281,005 320,397 11,709,157 8,110,166
-------- -------- ----------- -----------
Net assets end of year*............................................. $254,933 $281,005 $17,196,047 $11,709,157
======== ======== =========== ===========
Units outstanding beginning of year................................. 16,718 19,018 872,441 620,100
Units issued during the year........................................ 1,375 526 3,284,314 3,214,369
Units redeemed during the year...................................... 5,941 2,826 2,928,944 2,962,028
-------- -------- ----------- -----------
Units outstanding end of year....................................... 12,152 16,718 1,227,811 872,441
======== ======== =========== ===========
- ---------------
* Includes undistributed net investment income of: $100,496 $ 90,613 $ 1,460,854 $ 926,601
** Commencement of operations.
<CAPTION>
MONY SERIES FUND,
INC. (CONTINUED)
---------------------------
GOVERNMENT SECURITIES
SUBACCOUNT
---------------------------
FOR THE
PERIOD
DECEMBER 16,
FOR THE 1994 **
YEAR ENDED THROUGH
DECEMBER 31, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
From operations:
Net investment income............................................. $ 24,828 $ 130
Net realized gains on investments................................. 13,596 0
Net increase (decrease) in unrealized appreciation of
investments..................................................... (9,571) (161)
-------- -------
Net increase (decrease) in net assets resulting from operations..... 28,853 (31)
-------- -------
From unit transactions:
Net proceeds from the issuance of units........................... 905,752 25,706
Net asset value of units redeemed or used to meet contract
obligations..................................................... 46,064 0
-------- -------
Net increase (decrease) from unit transactions...................... 859,688 25,706
-------- -------
Net increase (decrease) in net assets............................... 888,541 25,675
Net assets beginning of year........................................ 25,675 0
-------- -------
Net assets end of year*............................................. $914,216 $ 25,675
======== =======
Units outstanding beginning of year................................. 2,571 0
Units issued during the year........................................ 85,300 2,571
Units redeemed during the year...................................... 4,300 0
-------- -------
Units outstanding end of year....................................... 83,571 2,571
======== =======
- ---------------
* Includes undistributed net investment income of: $ 24,958 $ 130
** Commencement of operations.
</TABLE>
See notes to financial statements.
57
<PAGE> 60
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------- -------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......................... $ 977,788 $ 139,265 $ 895,086 $ 577,930 $ 8,252,036 $ 2,697,195
Net realized gains (loss) on investments....... 703,043 266,597 150,075 295,680 4,218,503 4,500,670
Net increase (decrease) in unrealized
appreciation of investments.................. 3,414,730 (140,222) 785,984 (993,907) 28,860,483 (6,171,838)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations................................ 5,095,561 265,640 1,831,145 (120,297) 41,331,022 1,026,027
----------- ----------- ----------- ----------- ------------ -----------
From unit transactions:
Net proceeds from the issuance of units........ 5,740,714 4,393,632 4,091,027 7,123,098 35,331,913 29,888,848
Net asset value of units redeemed or used to
meet contract obligations.................... 2,181,404 1,388,936 2,597,244 2,524,254 12,561,716 15,783,741
----------- ----------- ----------- ----------- ------------ -----------
Net increase from unit transactions.............. 3,559,310 3,004,696 1,493,783 4,598,844 22,770,197 14,105,107
----------- ----------- ----------- ----------- ------------ -----------
Net increase in net assets....................... 8,654,871 3,270,336 3,324,928 4,478,547 64,101,219 15,131,134
Net assets beginning of year..................... 12,764,779 9,494,443 16,098,042 11,619,495 85,431,789 70,300,655
----------- ----------- ----------- ----------- ------------ -----------
Net assets end of year*.......................... $21,419,650 $12,764,779 $19,422,970 $16,098,042 $149,533,008 $85,431,789
=========== =========== =========== =========== ============ ===========
Units outstanding beginning of year.............. 651,102 496,795 742,341 529,142 3,528,618 2,941,211
Units issued during the year..................... 242,264 223,727 182,069 330,290 1,137,075 1,208,188
Units redeemed during the year................... 94,814 69,420 116,958 117,091 411,869 620,781
----------- ----------- ----------- ----------- ------------ -----------
Units outstanding end of year.................... 798,552 651,102 807,452 742,341 4,253,824 3,528,618
=========== =========== =========== =========== ============ ===========
- ---------------
* Includes undistributed net investment income
(loss) of:.................................... $ 1,339,019 $ 361,231 $ 1,836,130 $ 941,044 $ 12,761,788 $ 4,509,752
** Commencement of operations.
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE FOR THE
PERIOD PERIOD
NOVEMBER 22, NOVEMBER 22,
FOR THE 1994** FOR THE 1994**
YEAR ENDED THROUGH YEAR ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
From operations:
Net investment income.......................... $ 81,000 ($ 122) $ 42,638 $ 922
Net realized gains (loss) on investments....... 17,598 (458) 9,514 0
Net increase (decrease) in unrealized
appreciation of investments.................. 76,868 2,139 11,925 537
---------- ---------- ---------- --------
Net increase (decrease) in net assets resulting
from operations................................ 175,466 1,559 64,077 1,459
---------- ---------- ---------- --------
From unit transactions:
Net proceeds from the issuance of units........ 1,635,614 195,813 870,043 145,312
Net asset value of units redeemed or used to
meet contract obligations.................... 127,032 7,199 13,019 7
---------- ---------- ---------- --------
Net increase from unit transactions.............. 1,508,582 188,614 857,024 145,305
---------- ---------- ---------- --------
Net increase in net assets....................... 1,684,048 190,173 921,101 146,764
Net assets beginning of year..................... 190,173 0 146,764 0
---------- ---------- ---------- --------
Net assets end of year*.......................... $1,874,221 $ 190,173 $1,067,865 $ 146,764
========== ========== ========== ========
Units outstanding beginning of year.............. 19,197 0 14,621 0
Units issued during the year..................... 160,171 19,940 78,634 14,622
Units redeemed during the year................... 12,294 743 897 1
---------- ---------- ---------- --------
Units outstanding end of year.................... 167,074 19,197 92,358 14,621
========== ========== ========== ========
- ---------------
* Includes undistributed net investment income
(loss) of:.................................... $ 80,878 ($ 122) $ 43,560 $ 922
** Commencement of operations.
</TABLE>
See notes to financial statements.
58
<PAGE> 61
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
----------------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- ------------
FOR THE PERIOD FOR THE PERIOD
SEPTEMBER 17, SEPTEMBER 17,
FOR THE 1994** FOR THE 1994** FOR THE
YEAR ENDED THROUGH YEAR ENDED THROUGH YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995
------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)...................... $ 17,046 $ 4,237 $ 39,877 $ 12,296 ($ 2,184)
Net realized gains (losses) on investments........ 0 0 3,624 (141) 4,084
Net increase (decrease) in unrealized appreciation
of investments.................................. 0 0 66,019 (18,076) 75,352
-------- -------- --------- -------- --------
Net increase (decrease) in net assets resulting
from operations................................... 17,046 4,237 109,520 (5,921) 77,252
-------- -------- --------- -------- --------
From unit transactions:
Net proceeds from the issuance of units........... 416,556 641,363 4,079 866,925 29,438
Net asset value of units redeemed or used to meet
contract obligations............................ 469,730 171,376 140,292 2,158 19,982
-------- -------- --------- -------- --------
Net increase (decrease) from unit transactions..... (53,174) 469,987 (136,213) 864,767 9,456
-------- -------- --------- -------- --------
Net increase (decrease) in net assets.............. (36,128) 474,224 (26,693) 858,846 86,708
Net assets beginning of year....................... 474,224 0 858,846 0 207,551
-------- -------- --------- -------- --------
Net assets end of year*............................ $438,096 $474,224 $832,153 $858,846 $294,259
======== ======== ========= ======== ========
Units outstanding beginning of year................ 37,816 0 60,890 0 10,593
Units issued during the year....................... 32,841 51,569 274 61,044 1,189
Units redeemed during the year..................... 36,992 13,753 9,339 154 838
-------- -------- --------- -------- --------
Units outstanding end of year...................... 33,665 37,816 51,825 60,890 10,944
======== ======== ========= ======== ========
- ---------------
*Includes undistributed net investment income
(loss) of:........................................ $ 21,283 $ 4,237 $ 52,173 $ 12,296 ($ 2,951)
**Commencement of operations.
<CAPTION>
QUEST FOR VALUE ACCUMULATION TRUST
-----------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ----------------------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
SEPTEMBER 17, SEPTEMBER 17, SEPTEMBER 17,
1994** FOR THE 1994** FOR THE 1994**
THROUGH YEAR ENDED THROUGH YEAR ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1995 1994 1995 1994
-------------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)...................... ($ 767) ($ 2,938) ($ 1,269) ($ 70,749 ) ($ 28,155)
Net realized gains (losses) on investments........ (12) 3,823 (52) 101,433 (6,303)
Net increase (decrease) in unrealized appreciation
of investments.................................. (5,128) 58,016 (145) 3,336,819 (353,082)
-------- -------- -------- ----------- ----------
Net increase (decrease) in net assets resulting
from operations................................... (5,907) 58,901 (1,466) 3,367,503 (387,540)
-------- -------- -------- ----------- ----------
From unit transactions:
Net proceeds from the issuance of units........... 218,605 59,056 396,030 514,537 8,148,593
Net asset value of units redeemed or used to meet
contract obligations............................ 5,147 60,028 2,434 465,075 119,927
-------- -------- -------- ----------- ----------
Net increase (decrease) from unit transactions..... 213,458 (972) 393,596 49,462 8,028,666
-------- -------- -------- ----------- ----------
Net increase (decrease) in net assets.............. 207,551 57,929 392,130 3,416,965 7,641,126
Net assets beginning of year....................... 0 392,130 0 7,641,126 0
-------- -------- -------- ----------- ----------
Net assets end of year*............................ $207,551 $450,059 $392,130 $11,058,091 $ 7,641,126
======== ======== ======== =========== ==========
Units outstanding beginning of year................ 0 18,271 0 315,452 0
Units issued during the year....................... 10,848 2,780 18,384 17,915 320,287
Units redeemed during the year..................... 255 2,632 113 16,054 4,835
-------- -------- -------- ----------- ----------
Units outstanding end of year...................... 10,593 18,419 18,271 317,313 315,452
======== ======== ======== =========== ==========
- ---------------
*Includes undistributed net investment income
(loss) of:........................................ ($ 767) ($ 4,207) ($ 1,269) ($ 98,904 ) ($ 28,155)
**Commencement of operations.
</TABLE>
See notes to financial statements.
59
<PAGE> 62
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account A (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Payment Variable Annuity Policies. These policies
are issued by MONY. MONY is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY does not
expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently seventeen subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc.
("Fund"), Enterprise Accumulation Trust ("Enterprise") or the Quest for Value
Accumulation Trust ("Quest") collectively the "Funds". The Funds are registered
under the 1940 Act as open end, diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund, Enterprise and Quest are contained on pages 66 to 128; 129 to 174; and
175 to 230; respectively, and should be read in conjunction with these financial
statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios is stated at
the net asset values of each portfolio. Except for the Money Market Portfolios,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Funds. For the Money Market Portfolio,
the net asset values are based on the amortized cost of the securities held
which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY is the legal holder of the assets held by the Variable Account.
Purchase payments received from MONY by the Variable Account represent
gross purchase payments recorded by MONY less deductions retained for any
premium taxes.
A periodic deduction is made from the cash value of the contract for the
annual contract charge. The deduction is for the expenses of administration and
is treated by the Variable Account as a contractholder redemption. The amount
deducted from all subaccounts for 1995 was $161,738.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 1.25 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
60
<PAGE> 63
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. CHANGE IN ADVISORY ARRANGEMENT
Quest offered its shares to variable annuity separate accounts of the
Mutual Life Insurance Company of New York ("MONY") and its affiliate, MONY Life
Insurance Company of America as a funding vehicle for the MONYMaster and
ValueMaster variable annuity contracts issued by them. Quest also offered its
shares to variable annuity separate accounts of Provident Mutual Life Insurance
Company of Philadelphia and its affiliate, Provident Mutual Life and Annuity
Company of America (together, the "PM Companies") as a funding vehicle for
certain variable annuity contracts issued by these insurers. Owners of
ValueMaster contracts and contracts issued by the PM Companies are referred to
herein as "non-MONYMaster" contract owners.
On May 26, 1994, the Board of Trustees (the "Trustees") of Quest approved
new advisory arrangements for the Equity, Small Cap and Managed Portfolios of
Quest. Such advisory arrangements were approved by the shareholders of each
portfolio at a special meeting called for such purpose (the "Special Meeting").
Under the new arrangements, Enterprise became the investment adviser for the
three portfolios, and Quest for Value Advisors ("Quest Advisors"), the
portfolios' former investment adviser, became sub-adviser to these portfolios,
subject to the oversight of Enterprise. The two firms are rendering these
services at the same aggregate annual advisory fee rate as is currently in
effect (.60% of average daily net assets). The current advisory arrangements
were not changed for the Bond and Money Market Portfolios of Quest.
In connection with the implementation of new advisory arrangements as
described above, the assets of the Equity, Small Cap, Managed, Bond and Money
Market Portfolios of Quest supporting the non-MONYMaster contracts were
transferred on a pro-rata basis to substantially identical corresponding
portfolios of a newly-formed management investment company advised by Quest
Advisors, the new Quest for Value Accumulation Trust (the "New Quest"). The
division of net assets were in accordance with relative net asset value of the
shares of each portfolio of Quest attributable to MONYMaster contract owners and
non-MONYMaster contract owners, respectively. Shares of each portfolio
attributable to non-MONYMaster contract owners were redeemed in kind at net
asset value without a sales charge, and such assets were reinvested in the New
Quest by using such assets to purchase an equivalent number of shares of the New
Quest.
The assets transferred to New Quest were as follows:
<TABLE>
<S> <C>
Equity................................................................... $ 217,603
Small Cap................................................................ 318,781
Managed.................................................................. 8,126,663
Bond..................................................................... 783,568
Money Market............................................................. 626,212
</TABLE>
This transaction resulted in an adjustment to the basis of the net assets
reinvested in New Quest. As a result, the Equity, Small Cap, Managed and Bond
Subaccounts recognized unrealized appreciation/ (depreciation) of $37,748,
($254), $1,633,195 and ($80,426) on September 16, 1994 as a realized gain/(loss)
on the net assets redeemed.
61
<PAGE> 64
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1995 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................... 7,936 14,669 599,220 737,654 21,385 11,709,157 2,700
Amount................... $ 130,434 $ 212,781 $6,361,329 $8,830,039 $ 277,967 $11,709,157 $ 25,836
-------- -------- ---------- ---------- -------- ----------- --------
Shares acquired:
Shares................... 586 0 130,668 148,430 1,747 50,383,160 112,702
Amount................... $ 14,140 $ 0 $1,405,859 $1,808,602 $ 26,476 $50,383,160 $1,152,041
Shares received for
reinvestment of
dividends:
Shares................... 550 655 34,918 43,252 857 691,256 2,850
Amount................... $ 13,818 $ 12,854 $ 369,082 $ 557,081 $ 13,480 $ 691,256 $ 29,095
Shares redeemed:
Shares................... 707 2,585 138,379 128,267 7,772 45,587,526 28,711
Amount................... $ 9,153 $ 34,705 $1,498,048 $1,529,229 $ 100,700 $45,587,526 $ 283,024
-------- -------- ---------- ---------- -------- ----------- --------
Net change:
Shares................... 429 (1,930) 27,207 63,415 (5,168) 5,486,890 86,841
Amount................... $ 18,805 ($ 21,851) $ 276,893 $ 836,454 ($ 60,744) $ 5,486,890 $ 898,112
-------- -------- ---------- ---------- -------- ----------- --------
Shares end of year:
Shares................... 8,365 12,739 626,427 801,069 16,217 17,196,047 89,541
Amount................... $ 149,239 $ 190,930 $6,638,222 $9,666,493 $ 217,223 $17,196,047 $ 923,948
======== ======== ========== ========== ======== =========== ========
</TABLE>
62
<PAGE> 65
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust, Inc. at cost, at December 31,
1995 consist of the following:
<TABLE>
<CAPTION>
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares......................... 704,069 916,745 4,103,352 38,419 29,471
Amount......................... $12,309,407 $16,031,619 $ 84,677,761 $ 188,034 $ 146,227
----------- ----------- ------------ ---------- ----------
Shares acquired:
Shares......................... 317,112 264,655 1,512,069 347,010 188,057
Amount......................... $ 6,761,111 $ 4,717,127 $ 38,830,318 $ 1,783,438 $ 993,215
Shares received for reinvestment
of dividends:
Shares......................... 57,653 63,325 397,823 17,129 10,476
Amount......................... $ 1,189,471 $ 1,110,701 $ 9,739,464 $ 92,801 $ 49,428
Shares redeemed:
Shares......................... 161,504 193,698 684,199 54,936 26,899
Amount......................... $ 2,710,441 $ 3,288,884 $ 13,329,046 $ 269,059 $ 133,467
----------- ----------- ------------ ---------- ----------
Net change:
Shares......................... 213,261 134,282 1,225,693 309,203 171,634
Amount......................... $ 5,240,141 $ 2,538,944 $ 35,240,736 $ 1,607,180 $ 909,176
----------- ----------- ------------ ---------- ----------
Shares end of year:
Shares......................... 917,330 1,051,027 5,329,045 347,622 201,105
Amount......................... $17,549,548 $18,570,563 $119,918,497 $ 1,795,214 $1,055,403
=========== =========== ============ ========== ==========
</TABLE>
63
<PAGE> 66
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENTS (CONTINUED)
Investments in Quest for Value Accumulation Trust, Inc. at cost, at
December 31, 1995 consist of the following:
<TABLE>
<CAPTION>
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................................... 474,224 93,353 11,454 22,562 366,833
Amount................................... $ 474,224 $ 876,922 $ 212,679 $ 392,275 $7,994,208
-------- -------- -------- -------- ----------
Shares acquired:
Shares................................... 441,624 464 1,324 3,534 21,652
Amount................................... $ 441,624 $ 4,357 $ 30,476 $ 61,052 $ 548,811
Shares received for reinvestment of
dividends:
Shares................................... 22,619 5,141 51 145 2,203
Amount................................... $ 22,619 $ 50,113 $ 982 $ 2,460 $ 50,106
Shares redeemed:
Shares................................... 500,543 15,690 1,082 3,636 23,797
Amount................................... $ 500,543 $ 147,491 $ 20,102 $ 63,599 $ 518,771
-------- -------- -------- -------- ----------
Net change:
Shares................................... (36,300) (10,085) 293 43 58
Amount................................... ($ 36,300) ($ 93,021) $ 11,356 ($ 87) $ 80,146
-------- -------- -------- -------- ----------
Shares end of year:
Shares................................... 437,924 83,268 11,747 22,605 366,891
Amount................................... $ 437,924 $ 783,901 $ 224,035 $ 392,188 $8,074,354
======== ======== ======== ======== ==========
</TABLE>
64
<PAGE> 67
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account A:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account A (comprising, respectively, the MONY Series Fund, Inc.'s
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified, Money Market and Government Securities Subaccounts; the Enterprise
Accumulation Trust's Equity, Small Cap, Managed (formerly, three of the
subaccounts constituting the Quest for Value Accumulation Trust), International
Growth and High Yield Bond Subaccounts; and the Quest for Value Accumulation
Trust's Money Market, Bond, Equity, Small Cap, and Managed Subaccounts as of
December 31, 1995, the related statements of operations for the year then ended
and the statements of changes in net assets for each of the two years in the
period then ended for all of the subaccounts except MONY Series Fund, Inc.'s
Government Securities Subaccount for which the period is for the year ended
December 31, 1995 and for the period from December 16, 1994 (commencement of
operations) to December 31, 1994; the Enterprise Accumulation Trust's
International Growth and High Yield Bond Subaccounts for which the period is for
the year ended December 31, 1995 and for the period from November 22, 1994
(commencement of operations) to December 31, 1994; and the Quest for Value
Accumulation Trust's Subaccounts for which the period is for the year ended
December 31, 1995 and for the period from September 17, 1994 (commencement of
operations) to December 31, 1994. These financial statements are the
responsibility of MONY's management. Our responsibility is to express an opinion
on these financial statements 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 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 referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account A as of December 31, 1995, and
the results of their operations and the changes in their net assets 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 19, 1996
65
<PAGE> 68
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
The economic outlook is uncertain--growth should continue, but at a slower
rate. Factors that improve the overall environment such as low inflation, a
stronger dollar, and slow growth, have generally a detrimental effect on
corporate earnings. Fewer companies may be able to meet or exceed earnings
expectations. Later in the year, the outlook should become a bit more clear and
companies will have adjusted to the new conditions, but until then, some
defensiveness and reduced risk levels seem in order.
Earlier in the year, the Portfolio reduced holdings of cyclical stocks in
the basic materials and capital spending sectors as the economy began to slow.
In the fourth quarter, technology stocks were also reduced in weight. Cyclicals
and technology may again be attractive later in the year if the earnings outlook
improves, but for now, they represent less of the Portfolio than they did a year
ago.
From a defensive point of view, the energy sector, particularly
international oils, was increased. Healthcare remains an overweight with the
emphasis on drugs and H.M.O.'s. Other holdings in the consumer staples sector
include soft drinks, entertainment and tobacco stocks. Oils, healthcare and
consumer staples are less dependent on the economy for earnings growth, and
should be less likely to report a negative surprise.
Financial stocks continue to represent an overweight in the
Portfolio--banks have been reduced, but insurance and some of the specialty
companies remain as important holdings. The Portfolio has thus reduced some of
the more volatile sectors and increased some of the more stable sectors,
somewhat reducing the potential earnings volatility. The cyclical stocks have
experienced a correction. They are beginning to adapt to the new environment and
may become relatively more attractive if the stable sectors outperform. The
long-term outlook continues to be attractive, and at some point, this Portfolio
will likely be moving back toward cyclicals and technology.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN
MONY SERIES FUND, INC. EQUITY GROWTH PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MONY SERIES
(FISCAL YEAR COVERED) FUND, INC. S&P 500 INDEX
<S> <C> <C>
1985 10000 10000
1986 11047.88 11847
1987 12036.43 12466.60
1988 13483.65 14562.24
1989 17640.58 19147.89
1990 17385.40 18540.90
1991 23410.38 24205.14
1992 23213.85 26061.67
1993 25478.60 28665.23
1994 26020.17 29040.74
1995 33969.02 39910.69
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
66
<PAGE> 69
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.
67
<PAGE> 70
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.
68
<PAGE> 71
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.
69
<PAGE> 72
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<S> <C> <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.
70
<PAGE> 73
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <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.
71
<PAGE> 74
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <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.
72
<PAGE> 75
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <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.
73
<PAGE> 76
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <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
- --------
<S> <C> <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.
74
<PAGE> 77
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
In an uncertain environment with valuations high and the earnings outlook
questionable, some defensiveness in the Portfolio strategy seems warranted. The
Portfolio is overweight in financial stocks, telephones and international oils.
These groups have above average dividend yields, should have increased earnings
in 1996, and are generally less sensitive to the economy.
If the Fed continues to ease, the Portfolio will likely increase exposure
to cyclical stocks. The auto, credit sensitive financials, building related and
retail stocks are among early consumer cyclicals which generally do well when
the Fed is easing. We reduced holdings of basic materials and capital spending
related stocks when monetary policy turned restrictive and the economy weakened.
These groups have corrected, are once again reasonably valued, and have had most
of the excess expectations taken out of them. Sometime in 1996, these cyclicals
should again be emphasized in the Portfolio.
Healthcare has been a major holding, but many of the drug stocks have moved
and can no longer be bought, and in some cases, will likely be sold due to our
yield discipline. The group continues to look attractive, but this
attractiveness has not gone undiscovered.
The market is at new high absolute levels and is selling in historically
rich valuation territory. Based on history, the market has looked overvalued for
much of the past year, especially the dividend yield and price to book value.
Measures based on earnings and interest rates look a bit better, but most
investor's concern has centered on overall market valuation. Conditions have
been favorable, but the market already knows it.
If everything works out, fiscal conservatism becomes the new political
reality, and a credible budget deal is arrived at, then interest rates could
continue to decline. This much more positive political environment could justify
a new high level of valuation for the market, at least compared with the recent
past. This Portfolio with its heavy weight in interest sensitive stocks, should
participate in any ensuing upward move in the market. Although the basic
strategy is currently defensive, some of these defensive groups (financials,
utilities, and oils) have offensive characteristics in a slow growth, low
inflation environment.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN
MONY SERIES FUND, INC. EQUITY INCOME PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MONY SERIES
(FISCAL YEAR COVERED) FUND, INC. S&P 500 INDEX
<S> <C> <C>
1985 10000 10000
1986 11911.50 11847
1987 12807.38 12466.60
1988 15298.59 14562.24
1989 18727.80 19147.89
1990 17467.02 18540.90
1991 21015.44 24205.14
1992 23183.01 26061.67
1993 26460.82 28665.23
1994 26670.19 29040.74
1995 35497.29 39910.69
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
75
<PAGE> 78
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.
76
<PAGE> 79
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.
77
<PAGE> 80
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.
78
<PAGE> 81
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- -----------
<S> <C> <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.
79
<PAGE> 82
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<S> <C> <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.
80
<PAGE> 83
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<S> <C> <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.
81
<PAGE> 84
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<S> <C> <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.
82
<PAGE> 85
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- ----------
<S> <C> <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.
83
<PAGE> 86
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- -------- -----------
<S> <C> <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
- --------
<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.
84
<PAGE> 87
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
The Intermediate Term Bond Portfolio is a diversified U.S. Treasury and
corporate bond fund that seeks to maximize income and capital appreciation
through the investment in bonds with maturities averaging between four and eight
years. The Portfolio had an average maturity of 4.4 years as of December 31,
1995.
For the year ended December 31, 1995, the Portfolio earned a total return
with dividends reinvested of 14.82%. For the five and ten year periods ended
December 31, 1995, the average annual return on the Portfolio was 8.49% and
8.00%, respectively.
The fourth quarter of 1995 capped a banner year for intermediate-term
bonds. Interest rates, as measured by a benchmark five-year U.S. Treasury, hit
their peak of 7.90% early in the year, on January 9, and declined steadily to
close out the year at a low of 5.39% on December 29. Bond and note prices, which
move inversely to interest rates, climbed throughout much of the year.
The focus of the new year is on politics--with heated budget negotiations
in Washington trying to keep the promise of true deficit reduction; and the
economy--as a weak Christmas shopping season presages weak to moderate economic
growth in the first quarter. While we would not speculate too heavily on the
outcome of the political debate, on the economic front, we do see current
monetary policy as slightly restrictive. Continued weak economic data should
cause the Federal Reserve to lower short-term interest rates in several gradual
steps over the course of the year. This monetary easing should give support to
the bond market. Our outlook is for an early pause to consolidate recent gains,
with a more gradual decline in interest rates resuming later in the year.
The Portfolio is currently invested in 12 corporate issuers, comprising 33%
of total invested assets. U.S. Treasury issues make up 30% of the Portfolio,
with 9% in mortgage-backed securities, and the balance in cash equivalents. The
average Moody's rating on issues in the Portfolio is AA2, reflecting emphasis on
higher quality debt issuers.
The historical returns for the Porfolio take into account expenses incurred
by the Portfolio, but not other charges imposed by the variable accounts. An
investor may not invest directly into the MONY Series Fund, Inc. or Enterprise
Accumulation Trust Portfolios. Actual returns for the variable product you own
would therefore be lower. Of course, past performance does not guarantee future
results.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS GOV/CORP
INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MONY SERIES LEHMAN
(FISCAL YEAR COVERED) FUND, INC. BROTHERS
<S> <C> <C>
1985 10000 10000
1986 11216.44 11313
1987 11225.68 11727.06
1988 11870.06 12509.25
1989 13250.58 14106.68
1990 14165.34 15398.85
1991 16328.87 17650.16
1992 17447.29 18915.68
1993 18815.37 20578.37
1994 18528.93 20528.98
1995 21284.51 20629.57
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
85
<PAGE> 88
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.
86
<PAGE> 89
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.
87
<PAGE> 90
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.
88
<PAGE> 91
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- -----------
<S> <C> <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
-----------
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
-----------
</TABLE>
See notes to financial statements.
89
<PAGE> 92
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<S> <C> <C>
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.
90
<PAGE> 93
MONY SERIES FUND, INC.
THE LONG TERM BOND PORTFOLIO
The Long Term Bond Portfolio is a diversified U.S. Treasury and corporate
bond fund that seeks to maximize income and capital appreciation through the
investment in bonds with maturities generally longer than eight years. The
Portfolio had an average maturity of 20.9 years and a duration of 10.2 years as
of December 31, 1995.
For the year ended December 31, 1995, the Portfolio earned a total return,
with dividends reinvested of 30.04%. For the five and ten year periods ended
December 31, 1995, the average annual return on the Portfolio was 12.27% and
10.69%, respectively.
Market direction was nearly one way in 1995-toward lower yields. The
30-year Treasury yields continued their descent during the fourth quarter of
1995, closing the year at 5.96% from 6.50% on September 30th. In marked contrast
to 1994, this year posted one of the best years for bonds, especially investment
grade corporate bonds.
The economic outlook for 1996 favors another year of moderate growth with
the inflation forecast to stay below 3%. While there could be some near-term
risks associated with the budget negotiations, we believe monetary policy is
still restrictive, which bodes well for the bond market by eventually lowering
rates further and stimulating a current slow to moderately growing economy.
Corporate bonds should continue to do well for 1996 due to strengthening balance
sheets, excess free cash flow positions, and near term favorable technical
(supply and demand) outlook.
The Portfolio is currently invested in 22 corporate bonds and notes,
comprising 47% of total invested assets; U.S. Treasuries make up 43% of the
Portfolio, with 7% in mortgage-backed securities, and the balance in
cash-equivalents. Our continued emphasis on higher quality is reflected in the
average Moody's rating on issues in the Portfolio which is A2.
The historical returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the variable
accounts. An investor may not invest directly into the MONY Series Fund, Inc. or
Enterprise Accumulation Trust Portfolios. Actual returns for the variable
product you own would therefore be lower. Of course, past performance does not
guarantee future results.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS GOV/CORP INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MONY SERIES
(FISCAL YEAR COVERED) FUND, INC. S&P 500 INDEX
<S> <C> <C>
1985 10000 10000
1986 11485.39 12144
1987 11315.83 12041.99
1988 12262.48 13213.68
1989 14341.08 15531.36
1990 15239.08 16533.13
1991 17917.20 19762.05
1992 19492.87 21447.75
1993 22262.63 24913.71
1994 20895.46 25110.53
1995 27182.06 25605.21
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
91
<PAGE> 94
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.
92
<PAGE> 95
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.
93
<PAGE> 96
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.
94
<PAGE> 97
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
----------- -----------
<S> <C> <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 1,318,750
03/01/26.......................................................
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.
95
<PAGE> 98
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
----------- -----------
<S> <C> <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.
96
<PAGE> 99
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
Both the stock market and the bond market turned in excellent returns in
the year just ended. Equities led, with the benchmark S&P 500 stock index up for
a 37.51% annual return. The S&P 500 is an unmanaged index of 500 of the largest
corporations weighted by market capitalization. The benchmark Lehman Brothers
Aggregate Bond Index was up an only slightly less impressive 18.47% for the
year. The Lehman Brothers Aggregate Bond Index is an unmanaged index comprised
of 5,000 government, corporate, mortgage-backed, and asset-backed securities.
The impressive returns on financial assets in 1995 were driven by several
related factors. For the stock market, strong year-over-year growth in corporate
profits drove fundamental valuations higher; bonds were boosted by moderating
economic growth and low inflation leaving the potential for monetary easing.
We think that it will be difficult for the financial markets to repeat
1995's performance in the new year. Weak economic growth could result in anemic
earnings--and at year end, signs were growing that a correction well underway in
the erstwhile high-flying technology sector was beginning to make its way into
the broader market. Yet none of the early indicators of recession are apparent,
and the likelihood of several monetary easing steps by the Federal Reserve
should give both stock and bond markets underlying support. In sum, we are
looking for a respectable 1996.
As of December 31, 1995, the Diversified Portfolio was invested 72% in
common stocks, 17% in bonds, and 11% in money market equivalents.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN
MONY SERIES FUND, INC. DIVERSIFIED PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MONY SERIES
(FISCAL YEAR COVERED) FUND, INC. S&P 500 INDEX
<S> <C> <C>
1985 10000 10000
1986 11344.61 11847
1987 11791.69 12466.60
1988 12938.70 14562.24
1989 15799.92 19147.89
1990 16186.22 18540.90
1991 19478.56 24205.14
1992 19671.42 26061.67
1993 21819.08 28665.23
1994 22045.86 29040.74
1995 27850.93 39910.69
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
97
<PAGE> 100
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.
98
<PAGE> 101
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.
99
<PAGE> 102
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.
100
<PAGE> 103
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ----------
<S> <C> <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%
350,000 Federal Home Loan Mortgage Corp. 5.63%, due 01/16/96 (cost
$349,179)........................................................ 349,179
----------
<CAPTION>
SHARES
- ----------
<S> <C> <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.
101
<PAGE> 104
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<S> <C> <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.
102
<PAGE> 105
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<S> <C> <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.
103
<PAGE> 106
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<S> <C> <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.
104
<PAGE> 107
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ---------- ----------
<S> <C> <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>
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.
105
<PAGE> 108
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
The Government Securities Portfolio is a bond fund that seeks to maximize
income and capital appreciation through the investment in high quality debt
obligations issued or guaranteed by the U.S. Government, its Agencies, and
instrumentalities. The Portfolio is expected to have a dollar weighted average
life between one and five years under most circumstances. The Portfolio had an
average maturity of 3.7 years as of December 31, 1995.
For the year ended December 31, 1995, the Portfolio earned a total return,
with dividends reinvested of 10.89%. Since inception on May 1, 1991, through
December 1995, the Portfolio provided an average annual total return of 7.24%.
U.S. Treasury prices resumed their ascent in the fourth quarter, ending
December at low yields, and thus highs in prices, for the entire year. The move
down in yields resulted from continuing low measurements of inflation, as well
as moderating economic growth. The weakest Christmas shopping season in several
years came as an indicator that sluggishness was likely to continue into the new
year.
For 1996, politics as well as the economy should govern the fortunes of the
government bond market. Prices may be whipsawed by perceived progress, or lack
thereof, in reducing federal budget deficits projected in the years ahead. On
the economic side, inflation should remain south of 3%, which in the absence of
robust economic growth, gives the Federal Reserve room to further lower
short-term interest rates. However, Alan Greenspan, Chairman of the Federal
Reserve, may feel less disposed to easing rates if a satisfactory budget accord
is not reached.
Our outlook for the new year is for an early pause in the rally to
consolidate recent gains, but then a return to gradually lower rates later in
the year. In the interim, at least one eye will be focused on events in
Washington.
The Portfolio is currently invested 100% in U.S. Treasury and Government
Agency obligations.
Investments made in the Government Securities Portfolio are not insured nor
guaranteed by the U.S. Government.
The historical returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the variable
accounts. An investor may not invest directly into the MONY Series Fund, Inc. or
Enterprise Accumulation Trust Portfolios. Actual returns for the variable
product you own would therefore be lower. Of course, past performance does not
guarantee future results.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO FROM INCEPTION (5/1/91) THROUGH 12/31/95 AND
TOTAL RETURN ON LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MONY SERIES
(FISCAL YEAR COVERED) FUND, INC. S&P 500 INDEX
<S> <C> <C>
1991 10970 11411
1992 11738.93 12201.78
1993 12698.95 13198.67
1994 12489.91 13165.67
1995 13855.79 13223.60
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
106
<PAGE> 109
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.
107
<PAGE> 110
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.
108
<PAGE> 111
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.
109
<PAGE> 112
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ----------
<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.
110
<PAGE> 113
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
The Federal Reserve successfully achieved its soft landing-slow growth
goals in 1995. Their proactive moves in 1994 to stem inflation were successful
and created a strong level of confidence in the Federal Reserve's ability to
keep inflation under control. This created an atmosphere that allowed long-term
interest rates to drop. As the Fed became comfortable that balance was achieved,
they reduced the Fed Funds rate from 6.0% to 5.75%, signaling a more neutral
policy. As the end of 1995 approached, economic signs pointed to a sluggish
economy and the Federal Reserve eased rates another 25 basis points in December
to end the year with a Fed Funds rate of 5.50%.
From slow Christmas sales and other generally sluggish economic indicators,
it appears that 1996 will be at the slower end of the slow growth goal, making
it likely that the Federal Reserve will continue to ease short-term interest
rates in 1996. We expect the economy to continue to appear sluggish in 1996, and
for the Fed to continue easing interest rates through the end of the year. By
the end of 1996, interest rates could be as low as 4.50%.
The interest rate curve remains inverted, with one month maturity
investments yielding more than six month investments. The fear of interest rate
reductions creates the need to manage the Portfolio on a balanced basis. Short
maturity investments take advantage of current higher interest rates, while
longer term investments, when not fully pricing in anticipated Fed easings, are
purchased to protect against interest rates falling even more precipitously. The
average maturity of the Portfolio has remained basically the same at 35.1 days
as of December 31, 1995.
The Portfolio continues to be invested in high quality short-term
instruments, principally commercial paper. Our investment strategy is to
emphasize purchases of 30 to 90 day maturities to provide flexibility to respond
to any changes in the marketplace without sacrificing current income.
Investments made into the Money Market Portfolio are not insured nor
guaranteed by the U.S. government. There is no assurance that the Portfolio will
maintain a steady net asset value.
111
<PAGE> 114
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.
112
<PAGE> 115
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.
113
<PAGE> 116
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.
114
<PAGE> 117
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ------------
<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.
115
<PAGE> 118
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ---------- ------------
<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.
116
<PAGE> 119
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.
117
<PAGE> 120
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.
118
<PAGE> 121
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>
119
<PAGE> 122
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>
120
<PAGE> 123
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>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------------------------
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>
121
<PAGE> 124
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>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------------------
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.
122
<PAGE> 125
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>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------
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.
123
<PAGE> 126
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>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------
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.
124
<PAGE> 127
MONY SERIES FUND, INC.
DIVERSIFIED 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.... $ 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>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------
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.
125
<PAGE> 128
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>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
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>
126
<PAGE> 129
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.
127
<PAGE> 130
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
128
<PAGE> 131
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The Equity Portfolio continued its excellent performance in 1995, a year of
sharply rising stock prices. The portfolio invests primarily in the common
stocks of large and mid-sized companies. Its total return of 38.4% in 1995
exceeded the Standard & Poor's 500 Index (S&P 500), an unmanaged index of 500 of
the largest corporations weighted by market capitalization, which had a total
return of 37.6% with dividends included.
The Portfolio has provided favorable returns over longer periods, as well.
Its total return of 19.1% for the five years ended December 31, 1995, exceeded
the 16.6% average annual return for the S&P 500. From its inception on August 1,
1988 through December 31, 1995, the Portfolio provided an average annual total
return of 15.6%, surpassing the 15.2% average annual return of the S&P 500.
The Portfolio achieved above-market returns in 1995 despite a sizable cash
position, and without making significant investments in technology stocks, one
of the year's strongest market sectors. As of December 31, 1995, the Portfolio's
assets were allocated 79% to equities and 21% to cash and cash equivalents. The
Portfolio benefited from good stock selection. The five stocks which contributed
most to the Portfolio's performance in 1995 were EXEL, Ltd., Intel Corporation,
McDonnell Douglas Corporation, Federal Home Loan Mortgage Corporation (Freddie
Mac) and Becton, Dickinson & Company. Positions which detracted most from
performance included Champion International Corporation, Temple-Inland, Inc.,
MAPCO, Inc. and Burlington Resources, Inc.
The Portfolio's strong performance during 1995 was driven also by its
substantial holdings of financial service company stocks, which were among the
market leaders for the year. Such securities, representing 30% of the
Portfolio's net assets as of December 31, 1995, include an eclectic group of
specialty insurers and other financial service companies. Most have been
investments of long standing that appeared undervalued to us regardless of the
interest rate environment, although the decline in rates in 1995 did help fuel
their market performance.
The Portfolio owned the common stocks of 38 companies as of December 31,
1995. The five largest positions were Federal Home Loan Mortgage Corporation
(Freddie Mac), the second largest insurer of home mortgages in the United
States, representing 4.6% of the Portfolio's net assets; EXEL, Ltd., a strongly
capitalized specialty insurance company, 4.6% of net assets; May Department
Stores Company, a leading retailer, 3.8% of net assets; Becton, Dickinson &
Company, a worldwide producer of medical products and diagnostic test systems,
3.5% of net assets; and Citicorp, a leading bank, 3.0% of net assets. Major
industry positions as of December 31, 1995 were in the insurance sector, 14.1%
of the Portfolio's net assets; financial services, 9.0% of net assets; banking
7.0% of net assets; aerospace and defense, 6.2% of net assets; and health care,
5.2% of net assets.
The historical returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts. An investor may not invest directly into the MONY Series Fund, Inc. or
Enterprise Accumulation Trust Portfolios. Actual returns for the variable
product you own would therefore be lower. Of course, past performance does not
guarantee future results.
129
<PAGE> 132
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST EQUITY PORTFOLIO FROM INCEPTION (8/1/88)
THROUGH 12/31/95 AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD EQUITY PORT-
(FISCAL YEAR COVERED) FOLIO S&P 500
<S> <C> <C>
8/1/88 10000 10000
12/31/88 10190 10367
12/31/89 12500 13651
12/31/90 12223 13228
12/31/91 16038 17250
12/31/92 18909 18565
12/31/93 20393 20432
12/31/94 21182 20693
12/31/95 29325 28466
</TABLE>
SMALL CAP PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The Small Cap Portfolio seeks to invest in small company value stocks whose
expected future is greater than the markets collective expectation. The Small
Cap Portfolio had a total return of 12.3% in 1995, below the total return of
28.4% for the Russell 2000 Index. This is an unmanaged index composed of small
stocks traded on the NASDAQ, the New York and American Stock Exchanges.
The Portfolio underperformed the index, in large part, because it did not
own many technology or financial service company stocks, two of the small-cap
market's strongest sectors in 1995. Conversely, the Portfolio was overweighted
in real estate investment trusts (REITs). Many quality REITs appear to be
significantly undervalued. However, with their defensive investment
characteristics, they did not perform well during 1995 in a rising market.
For the five years ended December 31, 1995, the Portfolio provided an
average annual total return of 19.3%, compared with the 21.0% average annual
return for the Russell 2000 Index. From its inception on August 1, 1988 through
December 31, 1995, the Portfolio provided an average annual total return of
13.9%, compared with 12.6% for the Russell 2000 Index.
Technology issues are only part of the small-cap universe, and are
expensive and volatile. The rest of the small-cap market carries valuations that
are, in many cases, quite reasonable. We seek to control volatility and generate
higher returns by purchasing quality businesses that are mispriced by the
market. The Portfolio owns a diverse group of companies distinguished by
characteristics such as high cash flow and strong competitive positions. An
example is Oak Industries, Inc., the Portfolio's largest position. Oak
Industries is the dominant supplier of coaxial cable connectors to the cable
television industry and is benefiting from systems upgrading throughout the
industry. The Telecommunications Act should further boost Oak Industries'
business by promoting increased competition in the delivery of
telecommunications services to the home. Moreover,
130
<PAGE> 133
international revenues account for approximately 40% of the sales of Oak
Industries' major subsidiary, and these revenues are increasing at a rate of
about 40% a year as Oak Industries capitalizes on the rapid growth of cable TV
overseas. Oak Industries earned a high return on capital and has increased its
gross margins from 18.7% in 1989 to 40.1% in 1995. We believe the stock is
significantly undervalued at 11 times reported earnings.
We remain disciplined and confident in our approach and continue to perform
the rigorous, in-depth analysis to identify quality businesses, such as Oak
Industries, where the value of the franchise is underpriced in the market. Our
goal is to provide above-average returns with below-average risk over time as
the market recognizes the merits of the undervalued stocks we own.
The Portfolio's net assets were allocated 86% to common stocks and
securities convertible into common stocks, 1% to corporate bonds and 13% to cash
and cash equivalents as of December 31, 1995. The Portfolio owned the common
stocks of 78 companies. Its five largest holdings were Oak Industries, Inc.,
with its core business of manufacturing coaxial cable connectors for the cable
television industry, representing 3.7% of the Portfolio's net assets; True North
Communications, an advertising agency holding company owning Foote, Cone &
Belding Communications, Inc., one of the largest advertising agencies in North
America, 3.3% of net assets; Marshall Industries, which distributes components
to manufacturers of technology products, 2.9% of net assets; Security Capital
Industrial Trust, Inc., a real estate investment trust which owns, manages and
develops industrial warehouses in the Southeast and Southwest, 2.9% of net
assets; and Crane Company, which manufactures aerospace, fluid handling and
controls components and vending machines and distributes and manufactures
housing-related building products, 2.8% of net assets. Major industry positions
were in the electronics sector, 10% of the Portfolio's net assets; real estate,
8.7% of net assets; energy, also 8.7% of net assets; advertising, 6.1% of net
assets; and insurance, 5.3% of net assets.
The historical returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts. An investor may not invest directly into the MONY Series Fund, Inc. or
Enterprise Accumulation Trust Portfolios. Actual returns for the variable
product you own would therefore be lower. Of course, past performance does not
guarantee future results.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST SMALL CAP PORTFOLIO FROM INCEPTION (8/1/88)
THROUGH 12/31/95 AND TOTAL RETURN ON RUSSELL 2000 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD SMALL CAP
(FISCAL YEAR COVERED) PORTFOLIO RUSSELL 2000
<S> <C> <C>
8/1/88 10000 10000
12/31/88 10190 9936
12/31/89 12060 11549
12/31/90 10883 9296
12/31/91 16120 13577
12/31/92 19584 16078
12/31/93 23405 19117
12/31/94 23409 18769
12/31/95 26284 24106
</TABLE>
131
<PAGE> 134
MANAGED PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The Managed Portfolio invests in stocks, bonds and cash equivalents. The
Managed Portfolio has a total return of 46.9%, well above the total return of
37.6% for the S&P 500 Index with dividends included.
The Portfolio has been an excellent performer over time. For the five years
ended December 31, 1995; its average annual total return of 23.6% exceeded the
16.6% return of the S&P 500. From inception on August 1, 1988 through December
31, 1995, the Portfolio provided an average annual total return of 19.9%,
compared with 15.2% for the S&P 500.
Although the Portfolio can buy bonds and money market securities, in
practice it invests primarily in common stocks based on the premise that stocks
provide the best returns over time. As of December 31, 1995, 90% of the
Portfolio's net assets were invested in common stocks and securities convertible
into common stocks, 2% in Treasury notes and bonds and 8% in money market
securities. Allocation to asset classes did not change significantly during the
year.
The Portfolio has achieved its long-term performance by investing in
quality undervalued stocks and holding them for price appreciation. The
Portfolio owned the common stocks of 37 companies as of December 31, 1995. Its
five largest positions were McDonnell Douglas Corporation, the nation's largest
manufacturer of military aircraft and an important competitor in commercial
aircraft, representing 6.5% of net assets; Federal Home Loan Mortgage
Corporation (Freddie Mac), the second largest insurer of home mortgages in the
United States, 5.4% of net assets; Citicorp, a leading bank, 5.1% of net assets;
Intel Corporation, a major producer of semiconductors, 4.5% of net assets; and
Freeport McMoRan Copper & Gold (Class B), which produces copper and gold at a
mine in Irian Jaya in the South Pacific, 4.5% of net assets. Major industry
positions were in the banking sector, 17.1% of the Portfolio's net assets;
financial services, 13.8% of net assets; aerospace, 11.3% of net assets;
consumer products, 7.8%; and insurance, 6.3% of net assets.
The historical returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts. An investor may not invest directly into the MONY Series Fund, Inc. or
Enterprise Accumulation Trust Portfolios. Actual returns for the variable
product you own would therefore be lower. Of course, past performance does not
guarantee future results.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST MANAGED PORTFOLIO FROM INCEPTION (8/1/88)
THROUGH 12/31/95 AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MANAGED
(FISCAL YEAR COVERED) PORTFOLIO S&P 500
<S> <C> <C>
8/1/88 10000 10000
12/31/88 10440 10367
12/31/89 13836 13651
12/31/90 13336.3 13228
12/31/91 19468 17250
12/31/92 23098 18565
12/31/93 25498 20432
12/31/94 26152 20693
12/31/95 38416.12 28466
</TABLE>
132
<PAGE> 135
INTERNATIONAL GROWTH PORTFOLIO
BRINSON PARTNERS, INC.
CHICAGO, ILLINOIS
The International Growth Portfolio seeks capital appreciation, primarily
through a diversified portfolio of non-U.S. equity securities. In 1995, the
Portfolio returned 14.6% versus the EAFE Index return of 11.2%. Since November
30, 1994, the Portfolio returned 13.8% verses the EAFE Index return of 10.9%.
The EAFE Index is an unmanaged index composed of stocks representing the stock
markets of Europe, Australia, New Zealand and the Far East. The Portfolio has
benefited from its active strategies in market allocation, currency allocation,
and security selection. Over the year, the Portfolio benefited from our
underweight in the Japanese market. We reduced this underweight in August to
take advantage of a number of Japanese government measures that we felt could
result in a sharp rise in the price of the equity market. Our underweight in the
Japanese yen and DM-bloc currencies and overweight in the currency position in
the U.S. and Canadian dollar continued to benefit the portfolio. Stock selection
in Japan was also positive over the year. Corporate results appeared to be
better than expected due to the weaker yen and cost cutting.
The economic backdrop for international equity markets is one which appears
fairly benign. Rates of growth for real GDP for most developed countries are
expected to be between 2 and 3%, while inflation should be in the 2 to 4% range.
There will, however, be a number of developments which will challenge
international equity investors in the coming year.
One such development is the ongoing uncertainty about the likely
realization of Europe's goal of monetary union. The existence of a single
currency would impose monetary discipline on its member nations, something
equity markets presumably would like to see. The uncertainty arises from the
fear that many of these countries would be unable to accept the necessary
discipline to restrain from inflation. Thus, markets could be volatile as they
assess and reassess the likelihood of monetary union.
The outlook for Japan's economy presents another set of challenges. Japan
has been suffering through a prolonged recession, brought on by the government's
attempt to manage the deflation of asset prices. This has led to significant
concerns about the extent of problem loans at Japanese banks. An extremely
overvalued yen has exacerbated the deflationary effects of falling asset prices.
Recently, however, the Japanese monetary authorities have given some indication
of a shift in policy, helping trigger a correction in the yen. This fosters
brighter prospects for corporate profitability in the exporting sector. Thus,
even though the Japanese equity market remains fundamentally overvalued, the
shift to a much more accommodative monetary policy could lend some support to
the market.
In facing these challenges, we will continue to emphasize undervalued
equity markets, while attempting to protect investors from overvalued
currencies. In general, we view international equity markets as overvalued, with
expected returns in most markets below those we normally require as compensation
for risk. While we currently have a modest underweight in Japan, we see
opportunities in some of the European markets, such as the Netherlands and
Belgium. The German market, in contrast, is likely to perform relatively poorly,
as the negative effects of the overvalued deutschemark impact corporate
earnings. Outside of Europe, New Zealand offers compelling valuations. Through
major structural reforms it has become a competitive economy with attractive
growth prospects. In Australia, however, economic growth is clearly slowing, and
there is some uncertainty about future inflation and the current account
deficit. Despite these characteristics, equity valuations still remain
attractive. In Southeast Asian markets, we believe prices are very high relative
to underlying value.
The historical returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts. An investor may not invest directly into the MONY Series Fund, Inc. or
Enterprise Accumulation Trust Portfolios. Actual returns for the variable
product you own would therefore be lower. Of course, past performance does not
guarantee future results.
133
<PAGE> 136
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST INTERNATIONAL GROWTH PORTFOLIO FROM INCEPTION
(11/30/94) THROUGH 12/31/95 AND TOTAL RETURN ON EAFE INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD INTERNATIONAL
(FISCAL YEAR COVERED) PORTFOLIO EAFE
<S> <C> <C>
11/30/94 10000.00 10000.00
12/31/94 10040.60 10063.00
12/31/95 11510.00 11191.00
</TABLE>
HIGH-YIELD BOND PORTFOLIO
CAYWOOD-SCHOLL CAPITAL MANAGEMENT
SAN DIEGO, CALIFORNIA
The High-Yield Bond Portfolio seeks maximum current income, primarily from
debt securities that are rated Ba or lower by Moody's or BB or lower by S&P. The
Portfolios total return 16.6% for 1995, net of fund expenses. This compares with
a 12 month return of 21.8% for the Lehman BB Index. Since, November 30, 1994,
the High-Yield Bond Portfolio had a return of 16.4% as compared to the Lehman BB
Index 20.8% return. This is an unmanaged index composed of all issues rated
below Baa by Moody's plus all issues rated BB by Standard & Poors.
Four dominant themes influenced the high yield market in 1995: The stream
of new money into mutual funds kept market technicals favorably balanced through
much of the year. In addition investment grade corporate fixed income buyers
have begun to venture down the credit spectrum to the higher quality portion of
the high yield market. This marginal source of demand caused this sector of the
market to enjoy both strong performance and liquidity. Also, according to
Chemical Bank, new issues for 1995 decreased to $30.7 billion from the $35
billion issued in 1994. In 1995 there were smaller deal sizes and a greater
number of issues which had an impact on liquidity. In past years, new
merchandise was dominated by large LBO transactions that would become market
names such as RJR, Kroger, Safeway, Owens Illinois, Fort Howard and American
Standard. Today most transactions are smaller. The distribution of these issues
is thinner and lack of liquidity reduces trading activity. And finally,
according to Merrill Lynch, during the year, 30 issues representing $8.2 billion
defaulted versus $2.3 billion in 1994. The acceleration in default activity did
not have a significant impact upon the market. However, we always must be
cognizant of these situations and their influence on investor cash flows.
High yield bonds should perform relatively well in 1996, providing Congress
produces on its promise of bringing the government towards fiscal responsibility
and inflation remains restrained. Portfolio structure will attempt to maintain a
balance between credit and duration risk in order to maximize the potential for
risk adjusted returns with more emphasis on intermediate maturities until some
of the political and economic risks are identified more clearly.
134
<PAGE> 137
The historical returns for the High-Yield Bond Portfolio takes into account
expenses incurred by the Portfolio, but not other charges imposed by the
Variable Accounts. An investor may not invest directly into the MONY Series
Fund, Inc. or Enterprise Accumulation Trust Portfolios. Actual returns for the
variable product you own would therefore be lower. Of course, past performance
does not guarantee future results.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST HIGH-YIELD BOND PORTFOLIO FROM INCEPTION
(11/30/94)
THROUGH 12/31/95 AND TOTAL RETURN ON LEHMAN BB INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD HIGH-YIELD
(FISCAL YEAR COVERED) BOND LEHMAN BB
<S> <C> <C>
11/30/94 10000 10000
12/31/94 10111 10079
12/31/95 11788 12280
</TABLE>
The views expressed in this report reflect those of the portfolio managers,
only through the end of the period of the report as stated on the cover. The
managers' views are subject to change at any time based on market and other
conditions.
135
<PAGE> 138
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
COMMON STOCKS--79.1%
AEROSPACE & DEFENSE--6.2%
57,920 AlliedSignal Inc. ................................................ $ 2,751,200
82,800 Loral Corporation................................................. 2,929,050
51,753 McDonnell Douglas Corporation..................................... 4,761,276
------------
10,441,526
------------
APPAREL & TEXTILES--1.3%
87,374 Warnaco Group Inc. (Class A)*..................................... 2,184,350
------------
BANKING--7.0%
75,544 Citicorp.......................................................... 5,080,334
35,043 First Interstate Bancorp.......................................... 4,783,369
35,998 Mellon Bank Corporation........................................... 1,934,893
------------
11,798,596
------------
CHEMICALS--3.3%
54,000 Du Pont (E. I.) De Nemours & Company.............................. 3,773,250
32,202 Hercules Inc. .................................................... 1,815,388
------------
5,588,638
------------
CONGLOMERATES--2.0%
45,544 General Electric Company.......................................... 3,279,168
------------
CONSUMER PRODUCTS--4.7%
36,378 Avon Products Inc. ............................................... 2,741,992
65,630 Hasbro Inc. ...................................................... 2,034,530
99,900 Mattel Inc. ...................................................... 3,071,925
------------
7,848,447
------------
CONTAINERS--1.9%
71,002 Temple-Inland Inc. ............................................... 3,132,963
------------
DRUGS & MEDICAL PRODUCTS--4.6%
78,079 Becton, Dickinson & Company....................................... 5,855,925
20,126 Warner-Lambert Company............................................ 1,954,738
------------
7,810,663
------------
ELECTRONICS--2.1%
83,462 Arrow Electronics Inc.*........................................... 3,599,299
------------
ENERGY--2.0%
57,504 Triton Energy Corporation*........................................ 3,299,292
------------
HEALTH CARE--5.2%
80,000 Columbia Healthcare Corporation................................... 4,060,000
222,000 Tenet Healthcare Corporation*..................................... 4,606,500
------------
8,666,500
------------
</TABLE>
136
<PAGE> 139
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE--14.1%
125,000 Ace Ltd. ......................................................... $ 4,968,750
46,752 AFLAC Inc. ....................................................... 2,027,868
40,612 American International Group Inc. ................................ 3,756,610
126,174 EXEL Ltd. ........................................................ 7,696,614
76,421 Progressive Corporation (Ohio).................................... 3,735,077
20,126 Transamerica Corporation.......................................... 1,466,682
------------
23,651,601
------------
METALS & MINING--0.8%
49,431 Freeport McMoRan Copper & Gold (Class B).......................... 1,390,247
------------
MISC. FINANCIAL SERVICES--9.0%
74,755 American Express Company.......................................... 3,092,988
137,088 Countrywide Credit Industries Inc. ............................... 2,981,664
93,045 Federal Home Loan Mortgage Corporation............................ 7,769,257
16,835 Morgan Stanley Group Inc. ........................................ 1,357,322
------------
15,201,231
------------
PAPER & FOREST PRODUCTS--1.5%
61,000 Champion International Corporation................................ 2,562,000
------------
RETAIL--4.7%
151,712 May Department Stores Company..................................... 6,409,832
31,000 Penney (J. C.) Company Inc. ...................................... 1,476,375
------------
7,886,207
------------
TECHNOLOGY--1.8%
53,254 Intel Corporation................................................. 3,022,164
------------
TELECOMMUNICATIONS--2.9%
121,000 Sprint Corporation................................................ 4,824,875
------------
TRANSPORTATION--4.0%
37,000 AMR Corporation*.................................................. 2,747,250
86,000 CSX Corporation................................................... 3,923,750
------------
6,671,000
------------
Total Common Stocks (Identified Cost $96,488,074)................. $132,858,767
------------
</TABLE>
137
<PAGE> 140
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<S> <C> <C>
COMMERCIAL PAPER--21.4%
AUTOMOTIVE--2.4%
Ford Motor Credit Company
$1,000,000 5.55%, 02/01/96................................................. $ 995,221
3,000,000 5.62%, 02/01/96................................................. 2,985,482
------------
3,980,703
------------
BANKING--2.5%
4,300,000 Norwest Financial Inc. 5.75%, 01/09/96............................ 4,294,506
------------
INSURANCE--3.1%
5,300,000 Prudential Funding Corporation 5.66%, 01/30/96.................... 5,275,835
------------
MACHINERY--2.7%
4,500,000 Deere (John) Capital Corporation 5.73%, 01/04/96.................. 4,497,851
------------
MISC. FINANCIAL SERVICES--7.1%
6,900,000 Beneficial Corporation 5.80%, 01/24/96............................ 6,874,432
5,000,000 Household Finance Corporation 5.81%, 01/11/96..................... 4,991,930
------------
11,866,362
------------
TECHNOLOGY--3.6%
6,000,000 IBM Corporation 5.77%, 01/17/96................................... 5,984,613
------------
Total Commercial Paper (Identified Cost $35,899,870).......... $ 35,899,870
------------
REPURCHASE AGREEMENT--0.4%
$795,000 State Street Bank & Trust Repurchase Agreement 2.25%, 01/02/96
Collateral: U.S. Treasury Note, $795,000, 5.75% due 9/30/97,
Value $813,192.................................................... $ 795,000
------------
Total Repurchase Agreement (Identified Cost $795,000)..... $ 795,000
------------
Total Investments (cost $133,182,944 )................ 100.9% $169,553,637
Other Assets Less Liabilities......................... (0.9) (1,590,974)
----- ------------
Net Assets............................................ 100.0% $167,962,663
===== ============
</TABLE>
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
* Non-income producing security
138
<PAGE> 141
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS--85.0%
ADVERTISING--6.1%
135,600 Katz Media Group Inc.*............................................ $ 2,389,950
62,000 Omnicom Group Inc................................................. 2,309,500
294,036 True North Communications......................................... 5,439,666
------------
10,139,116
------------
APPAREL & TEXTILES--4.6%
25,000 Crown Crafts Inc.................................................. 287,500
54,500 Culp Inc.......................................................... 606,312
102,200 Dyersburg Corporation............................................. 511,000
41,674 Fab Industries Inc................................................ 1,328,359
80,200 Mohawk Industries Inc.*........................................... 1,253,125
184,000 Westpoint Stevens Inc. (Class A)*................................. 3,691,500
------------
7,677,796
------------
AUTOMOTIVE--1.1%
75,600 Collins Industries Inc.*.......................................... 122,850
118,400 Masland Corporation............................................... 1,657,600
------------
1,780,450
------------
BUILDING & CONSTRUCTION--3.5%
119,834 D.R. Horton Inc.*................................................. 1,408,049
39,900 Insituform Technologies (Class A)*................................ 463,838
189,600 Martin Marietta Materials Inc..................................... 3,910,500
------------
5,782,387
------------
CHEMICALS--1.5%
76,000 OM Group Inc...................................................... 2,517,500
------------
COMPUTER HARDWARE--1.0%
118,496 Exabyte Corporation*.............................................. 1,733,004
------------
COMPUTER SERVICES--2.5%
174,133 BancTec Inc.*..................................................... 3,221,460
19,406 Globalink Inc.*................................................... 126,139
33,000 Keane Inc.*....................................................... 730,125
------------
4,077,724
------------
CONGLOMERATES--2.1%
141,700 Ralcorp Holdings Inc.*............................................ 3,436,225
------------
CONSUMER DURABLES--2.5%
35,000 Rival Company..................................................... 774,375
119,000 Singer Company N V................................................ 3,317,125
------------
4,091,500
------------
</TABLE>
139
<PAGE> 142
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
DRUGS & MEDICAL PRODUCTS--2.3%
48,500 Dentsply International Inc........................................ $ 1,940,000
80,294 Sybron International Corporation*................................. 1,906,983
------------
3,846,983
ELECTRONICS--10.0%
35,000 Arrow Electronics Inc.*........................................... 1,509,375
173,600 EG & G Inc........................................................ 4,209,800
151,400 Marshall Industries Inc.*......................................... 4,863,725
321,600 Oak Industries Inc.*.............................................. 6,030,000
------------
16,612,900
------------
ENERGY--8.7%
101,152 Aquila Gas Pipeline Corporation................................... 1,302,332
84,000 Belden & Blake Corporation*....................................... 1,470,000
200,000 Global Natural Resources Inc.*.................................... 2,100,000
130,400 Noble Drilling Corporation*....................................... 1,173,600
165,000 Petroleum Heat & Power Inc........................................ 1,340,625
240,558 Sithe Energies Inc.*.............................................. 1,443,348
106,300 St. Mary Land & Exploration Company............................... 1,488,200
107,400 Tesoro Petroleum Corporation*..................................... 926,325
28,000 Triton Energy Corporation*........................................ 1,606,500
78,500 UGI Corporation................................................... 1,628,875
------------
14,479,805
------------
ENTERTAINMENT & LEISURE--0.2%
25,000 Hollywood Park Inc.*.............................................. 251,562
274,617 Spectravision Inc. (Class B)*..................................... 4,291
------------
255,853
------------
HEALTH CARE--2.9%
39,500 Amerisource Health Corporation (Class A)*......................... 1,303,500
20,000 Community Health Systems Inc.*.................................... 712,500
54,800 Magellan Health Services Inc.*.................................... 1,309,712
54,000 Spacelabs Inc.*................................................... 1,552,500
------------
4,878,212
------------
HOTELS & RESTAURANTS--1.1%
72,500 IHOP Corporation*................................................. 1,885,000
------------
</TABLE>
140
<PAGE> 143
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
INSURANCE--5.3%
49,000 Ace Ltd........................................................... $ 1,947,750
73,300 Capsure Holdings Corporation*..................................... 1,291,912
117,600 E. W. Blanch Holdings Inc......................................... 2,748,900
88,047 Guaranty National Corporation..................................... 1,353,723
65,600 Prudential Reinsurance Holdings Inc............................... 1,533,400
------------
8,875,685
------------
MACHINERY--2.3%
50,000 Baldwin Technology Company Inc.*.................................. 253,125
60,000 Briggs & Stratton Corporation..................................... 2,602,500
62,500 BW/IP Inc. (Class A).............................................. 1,031,250
------------
3,886,875
------------
MANUFACTURING--4.2%
127,400 Crane Company..................................................... 4,697,875
70,300 Harmon Industries Inc............................................. 1,107,225
59,452 North American Watch Company...................................... 1,144,451
------------
6,949,551
------------
METALS & MINING--0.4%
71,030 Olympic Steel Inc.*............................................... 621,513
------------
MISC. FINANCIAL SERVICES--0.5%
40,500 First Financial Caribbean Corporation............................. 759,375
------------
PAPER & FOREST PRODUCTS--2.9%
439,000 Repap Enterprises Inc.*........................................... 1,948,062
200,000 Shorewood Packaging Corporation*.................................. 2,850,000
------------
4,798,062
------------
PRINTING/PUBLISHING--2.0%
70,100 International Imaging Materials Inc.*............................. 1,770,025
20,000 Merrill Corporation............................................... 320,000
76,000 Nu-Kote Holding Inc. (Class A) *.................................. 1,292,000
------------
3,382,025
------------
REAL ESTATE--8.7%
147,609 Cousins Properties Inc............................................ 2,989,082
41,839 Post Properties Inc............................................... 1,333,618
1,134 Security Capital Group Inc. (A)................................... 1,000,188
277,100 Security Capital Industrial Trust................................. 4,849,250
220,022 Security Capital Pacific Trust.................................... 4,345,435
------------
14,517,573
------------
</TABLE>
141
<PAGE> 144
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
RETAIL--2.4%
36,092 Blair Corporation................................................. $ 1,141,409
60,000 Maxim Group Inc. ................................................. 810,000
105,250 McGrath RentCorp.................................................. 1,999,750
------------
3,951,159
------------
RUBBER & PLASTICS--2.2%
91,600 Carlisle Companies Inc............................................ 3,698,350
------------
SECURITY/INVESTIGATION SERVICES--0.1%
198,180 Automated Security (Holdings) PLC ADS*............................ 148,635
------------
TECHNOLOGY--0.4%
21,700 Unitrode Corporation*............................................. 613,025
------------
TELECOMMUNICATIONS--1.0%
70,000 ECI Telecom Ltd.*................................................. 1,596,875
------------
TOBACCO/BEVERAGES/FOOD PRODUCTS--0.9%
45,000 Morningstar Group Inc.*........................................... 360,000
88,800 Sylvan Food Holdings Inc.*........................................ 1,054,500
------------
1,414,500
------------
TRANSPORTATION--1.6%
151,299 Interpool Inc.*................................................... 2,704,470
------------
Total Common Stocks (Identified Cost $130,116,258)........... $141,112,128
------------
CONVERTIBLE PREFERRED STOCKS--0.9%
RETAIL--0.1%
37,800 Family Bargain Corporation........................................ $ 222,075
------------
TRANSPORTATION--0.8%
14,175 Interpool Inc..................................................... 1,332,450
------------
Total Convertible Preferred Stocks (Identified Cost
$1,795,507)................................................ $ 1,554,525
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- ---------
<C> <S> <C>
CORPORATE NOTES--0.3%
ENERGY--0.3%
$ 399,875 Global Marine Inc. 12.75%, 12/15/99............................... $ 441,862
------------
Total Corporate Notes (Identified Cost $419,650)............. $ 441,862
------------
</TABLE>
142
<PAGE> 145
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS--0.5%
REAL ESTATE--0.5%
Security Capital Group Inc. (A)
$ 859,005 12.00%, 06/30/14.............................................. $ 859,005
25,634 12.00%, 06/30/14.............................................. 25,634
------------
884,639
------------
Total Convertible Corporate Bonds (Identified Cost $835,310).. $ 884,639
------------
OPTIONS--0.0%
ENERGY--0.0%
$ 28,000 Triton Energy Corporation*......................................... $ 57,750
------------
Total Options (Identified Cost $77,154)....................... $ 57,750
------------
COMMERCIAL PAPER--12.3%
AUTOMOTIVE--2.7%
Ford Motor Credit Company
$1,500,000 5.55%, 01/17/96............................................... $ 1,496,300
3,000,000 5.71%, 01/03/96............................................... 2,999,048
------------
4,495,348
------------
INSURANCE--2.4%
4,000,000 Prudential Funding Corporation 5.63% 01/11/96...................... 3,993,745
------------
MACHINERY--1.8%
3,000,000 Deere (John) Capital Corporation 5.73%, 01/04/95................... 2,998,568
------------
MISC. FINANCIAL SERVICES--5.4%
2,000,000 Beneficial Corporation 5.77%, 01/02/95............................. 1,999,679
7,000,000 General Electric Capital Services, Inc. 5.76%, 01/10/95............ 6,989,920
------------
8,989,599
------------
Total Commercial Paper (Identified Cost $20,477,260).......... $20,477,260
------------
</TABLE>
143
<PAGE> 146
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT--0.6%
$ 950,000 State Street Bank & Trust Repurchase Agreement 2.25%, 01/02/96
Collateral: U.S. Treasury Note $950,000, 5.75% due 9/30/97, Value
$971,739.......................................................... $ 950,000
-----------
Total Repurchase Agreement (Identified Cost $950,000)........ $ 950,000
-----------
Total Investments (cost $154,671,139)................ 99.6% $165,478,164
Other Assets Less Liabilities........................ 0.4 582,970
------ ------------
Net Assets........................................... 100.0% $166,061,134
====== ============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security
(A) Restricted security as of December 31, 1995:
<TABLE>
<CAPTION>
AGGREGATE % OF
DATES OF PAR/ UNIT --------------------- NET
DESCRIPTION ACQUISITION SHARES UNIT COST VALUE COST VALUE ASSETS
- ----------- ----------------- -------- --------------- ------- --------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Security Capital Group, Inc.
12.00%, 6/30/14 7/1/94 $859,005 $ 0.94 $ 1.00 $ 809,676 $ 859,005 0.52%
12/31/94-12/31/95 25,634 1.00 1.00 25,634 25,634 0.02
Security Capital Group, Inc. 7/26/93-1/19/94 1,134 $680.97-$686.00 $882.00 775,764 1,000,188 0.60%
---------- --------- ----
$1,611,074 $1,884,827 1.14%
========== ========= ====
</TABLE>
144
<PAGE> 147
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- --------------
<S> <C> <C>
COMMON STOCK--89.5%
AEROSPACE & DEFENSE--11.3%
225,000 Lockheed Martin Corporation.................................... $ 17,775,000
600,000 Loral Corporation.............................................. 21,225,000
900,000 McDonnell Douglas Corporation.................................. 82,800,000
330,000 Northrop Grumman Corporation................................... 21,120,000
------------
142,920,000
------------
APPAREL & TEXTILES--1.8%
1,500,000 Shaw Industries Inc. .......................................... 22,125,000
------------
AUTOMOTIVE--1.9%
400,000 Collins & Aikman Corporation*.................................. 2,650,000
400,000 General Motors Corporation..................................... 21,150,000
------------
23,800,000
------------
BANKING--17.1%
951,000 Citicorp....................................................... 63,954,750
100,000 First Empire State Corporation................................. 21,800,000
330,000 First Interstate Bancorp....................................... 45,045,000
550,000 Mellon Bank Corporation........................................ 29,562,500
260,000 Wells Fargo & Company.......................................... 56,160,000
------------
216,522,250
------------
CHEMICALS--5.3%
625,000 Du Pont (E. I.) De Nemours & Company........................... 43,671,875
425,000 Hercules Inc. ................................................. 23,959,375
------------
67,631,250
------------
CONSUMER PRODUCTS--7.8%
273,000 Kimberly Clark Corporation..................................... 22,590,750
1,450,000 Mattel Inc. ................................................... 44,587,500
1,125,000 Reebok International Ltd. ..................................... 31,781,250
------------
98,959,500
------------
DRUGS & MEDICAL PRODUCTS--3.1%
520,000 Becton, Dickinson & Company.................................... 39,000,000
------------
ENERGY--5.1%
200,000 MAPCO Inc. .................................................... 10,925,000
700,000 Tenneco Inc. .................................................. 34,737,500
325,500 Triton Energy Corporation*..................................... 18,675,562
------------
64,338,062
------------
ENTERTAINMENT & LEISURE--1.3%
700,000 Harrahs Entertainment Inc. .................................... 16,975,000
------------
</TABLE>
145
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ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
HEALTH CARE--0.0%
10 Laboratory Corporation of America Holdings (Wts)*.............. $ 7
------------
INSURANCE--6.3%
800,000 EXEL Ltd. ..................................................... 48,800,000
204,600 Transamerica Corporation....................................... 14,910,225
1,500 Transport Holdings Inc. (Class A)*............................. 61,125
250,000 Travelers Group Inc. .......................................... 15,718,750
------------
79,490,100
------------
METALS & MINING--5.2%
2,000,000 Freeport McMoRan Copper & Gold (Class B)....................... 56,250,000
249,990 Freeport McMoRan Inc. ......................................... 9,249,630
------------
65,499,630
------------
MISC. FINANCIAL SERVICES--13.8%
800,000 American Express Company....................................... 33,100,000
1,150,000 Countrywide Credit Industries Inc. ............................ 25,012,500
820,000 Federal Home Loan Mortgage Corporation......................... 68,470,000
390,000 Federal National Mortgage Association.......................... 48,408,750
------------
174,991,250
------------
PAPER & FOREST PRODUCTS--3.5%
1,050,000 Champion International Corporation............................. 44,100,000
------------
REAL ESTATE--0.8%
10,774 Security Capital Group Inc. (A)................................ 9,502,668
------------
TECHNOLOGY--5.2%
1,010,000 Intel Corporation.............................................. 57,317,500
310,000 Unitrode Corporation*.......................................... 8,757,500
------------
66,075,000
------------
Total Common Stocks (Identified Cost $825,215,702)........ $1,131,929,717
------------
CONVERTIBLE PREFERRED STOCKS--0.0%
RETAIL--0.0%
32,922 Venture Stores................................................. $ 329,220
------------
Total Convertible Preferred Stocks (Identified Cost
$1,566,100)............................................... $ 329,220
------------
CONVERTIBLE CORPORATE BONDS--0.7%
REAL ESTATE--0.7%
Security Capital Group Inc. (A)
8,162,362 12.00% 06/30/14........................................... $ 8,162,362
163,288 12.00% 06/30/14........................................... 163,288
------------
8,325,650
------------
Total Convertible Corporate Bonds (Identified Cost
$7,856,920)............................................... $ 8,325,650
------------
</TABLE>
146
<PAGE> 149
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- --------------
<S> <C> <C>
U.S. TREASURY BOND--0.8%
$9,300,000 6.25% 08/15/23................................................. $ 9,566,817
-----------
Total U.S. Treasury Bonds (Identified Cost $8,665,645).... $ 9,566,817
-----------
U.S. TREASURY NOTES--1.0%
United States Treasury Notes
$8,370,000 7.88% 04/15/98............................................ $ 8,841,985
3,952,500 7.88% 08/15/01............................................ 4,414,310
-----------
Total U.S. Treasury Notes (Identified Cost $12,354,594)... $ 13,256,295
-----------
COMMERCIAL PAPER--7.7%
AUTOMOTIVE--1.1%
Ford Motor Credit Company
$4,000,000 5.58% 01/16/96............................................ $ 3,990,700
10,000,000 5.80% 01/16/96............................................ 9,975,833
-----------
13,966,533
-----------
BANKING--0.4%
5,000,000 Norwest Financial Inc. 5.73% 01/03/96.......................... 4,998,408
-----------
MACHINERY--1.6%
20,000,000 Deere (John) Capital Corporation 5.60% 01/30/96................ 19,909,778
-----------
MISC. FINANCIAL SERVICES--4.6%
Beneficial Corp.
6,000,000 5.65% 01/29/96............................................ 5,973,633
17,900,000 5.76% 01/08/96............................................ 17,879,952
15,800,000 5.80% 01/22/96............................................ 15,746,544
Household Finance Corporation
12,000,000 5.56% 01/25/96............................................ 11,955,520
6,950,000 5.75% 01/03/96............................................ 6,947,780
-----------
58,503,429
-----------
Total Commercial Paper (Identified Cost $97,378,148)...... $ 97,378,148
-----------
</TABLE>
147
<PAGE> 150
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- --------------
<S> <C> <C>
REPURCHASE AGREEMENT--0.1%
$1,015,000 State Street Bank & Trust Repurchase Agreement 4.25% 01/02/96
Collateral: U.S. Treasury Note $1,015,000, 5.75% due 9/30/97
Value $1,038,226............................................... $ 1,015,000
--------------
Total Repurchase Agreement (Identified Cost $1,015,000)...... $ 1,015,000
--------------
Total Investments (cost $954,052,109)................. 99.8% $1,261,800,847
Other Assets Less Liabilities......................... 0.2 2,917,130
----- --------------
Net Assets............................................ 100.0% $1,264,717,977
===== ==============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security
(Wts) Warrants
(A) Restricted securities as of December 31, 1995:
<TABLE>
<CAPTION>
AGGREGATE % OF
DATES OF PAR/ ----------------------- NET
DESCRIPTION ACQUISITION SHARES UNIT COST UNIT VALUE COST VALUE ASSETS
- -------------------------- ----------------- --------- ------------------- ---------- ---------- ---------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Security Capital Group,
Inc. 7/1/94-9/15/94 $8,162,362 $ 0.94 $ 1.00 $ 7,699,650 $8,162,362 0.65%
12.00%, 6/30/14......... 12/31/94-12/31/95 163,288 1.00 1.00 163,288 163,288 0.01
Security Capital Group,
Inc. Common Stock....... 3/7/94-9/15/94 10,774 $777.02 - $925.41 $ 882.00 9,096,951 9,502,668 0.75%
----------- ----------- ----
$16,959,889 $17,828,318 1.41%
=========== =========== ====
</TABLE>
148
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ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<S> <C> <C>
COMMON STOCKS--89.4%
AUSTRALIA--3.4%
4,500 Amcor LTD......................................................... $ 31,775
8,000 ANZ Banking Group................................................. 37,520
12,900 Broken Hill Proprietary........................................... 182,176
3,500 CRA LTD........................................................... 51,353
20,000 David Jones LTD................................................... 30,623
3,080 Lend Lease Corporation............................................ 44,641
7,000 National Australia Bank........................................... 62,955
10,000 News Corporation.................................................. 53,367
9,000 Pacific Dunlop LTD................................................ 21,072
11,000 Qantas Airways LTD................................................ 18,314
7,000 Santos LTD........................................................ 20,448
13,000 Westpac Bank Corporation.......................................... 57,589
4,000 WMC LTD........................................................... 25,688
------------
637,521
------------
BELGIUM--2.2%
200 Bruxelles Lambert Groupe.......................................... 27,183
500 Delhaize Le Lion.................................................. 20,727
370 Electrabel........................................................ 88,005
400 Fortis AG......................................................... 48,590
220 Kredietbank....................................................... 60,177
200 Petrofina SA...................................................... 61,230
200 Society General De Belgiqu........................................ 16,718
60 Solvay............................................................ 32,569
100 Tractebel CAP..................................................... 41,284
200 Union Miniere*.................................................... 13,388
------------
409,871
------------
CANADA--3.4%
1,800 Alcan Aluminum LTD................................................ 55,859
4,000 Bank Montreal Quebec.............................................. 90,809
900 Barrick Gold Corporation.......................................... 23,728
5,100 Canadian Pacific LTD.............................................. 92,906
2,300 Imperial Oil LTD.................................................. 83,166
900 Moore Corporation Limited......................................... 16,889
1,200 Noranda Inc....................................................... 24,716
800 Norcen Energy Resources LTD....................................... 12,010
700 Northern Telecom LTD.............................................. 29,925
2,900 Nova Corporation Alberta.......................................... 23,361
3,500 Royal Bank Canada Montreal Quebec................................. 79,778
1,100 Seagram LTD....................................................... 37,862
3,000 Thomson Corporation............................................... 41,743
</TABLE>
149
<PAGE> 152
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
CANADA--(CONTINUED)
1,600 Transcanada Pipelines LTD......................................... $ 22,116
------------
634,868
------------
FRANCE--8.2%
500 Accor............................................................. 64,734
656 Alcatel Alsthom................................................... 56,558
2,000 Banque National Paris............................................. 90,219
1,000 Carnaudmetalbox................................................... 45,742
400 Cep Communications................................................ 33,163
859 Cie De St Gobain.................................................. 93,671
1,118 Cie De Suez....................................................... 46,117
928 Cie Generale Des Eaux............................................. 92,648
200 Colas............................................................. 33,490
470 Compagnie Bancaire................................................ 52,596
1,109 Credit Local de France............................................ 88,774
300 GAN Group*........................................................ 10,966
640 LVMH Moet Hennessy................................................ 133,306
1,200 Michelin*......................................................... 47,858
750 Pechiney.......................................................... 28,334
1,075 Peugeot SA........................................................ 141,811
940 Sanofi............................................................ 60,254
909 Societe Generale.................................................. 112,302
1,220 Society Elf Aquitaine............................................. 89,887
2,050 Total SA.......................................................... 138,355
2,214 Union Assured Paris............................................... 57,825
------------
1,518,610
------------
GERMANY--5.4%
53 Allianz AG Holdings............................................... 103,303
200 BASF AG........................................................... 44,545
200 Bayer AG.......................................................... 52,771
100 Bayer Motoren Werk................................................ 51,237
1,060 Bayer Vereinsbk................................................... 31,478
200 Commerzbank AG.................................................... 47,264
50 Daimler Benz AG................................................... 25,166
3,100 Deutsche Bank AG.................................................. 146,885
200 Hoechst AG........................................................ 54,235
130 Kaufhof Holding AG................................................ 39,603
270 Mannesmann AG..................................................... 85,960
38 Muenchener Ruckvers............................................... 82,649
3 Muenchener Ruckvers*.............................................. 6,454
140 Preussag AG....................................................... 39,136
</TABLE>
150
<PAGE> 153
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
GERMANY--(CONTINUED)
150 Rhein-Westf eleckir AG............................................ $ 54,374
700 Schering AG....................................................... 46,372
2,200 Veba AG........................................................... 93,398
------------
1,004,830
------------
ITALY--2.0%
3,200 Assic Generali.................................................... 77,475
2,200 Eni (ADR)......................................................... 75,350
6,000 IMI............................................................... 37,780
8,000 Italgas........................................................... 24,331
1,000 Mediobanca SPA.................................................... 6,923
27,000 Montedison SPA*................................................... 18,089
3,000 Rinascente........................................................ 18,154
5,000 SAI............................................................... 20,748
45,000 Telecom Italia.................................................... 55,027
45,000 Telecom Italia Mobile............................................. 47,320
------------
381,197
------------
JAPAN--35.7%
10,000 Amada Company..................................................... 98,789
14,000 Asahi Glass Company............................................... 155,932
7,000 Bank of Tokyo..................................................... 122,712
10,000 Canon Inc......................................................... 181,114
3,150 Canon Sales Company Inc........................................... 83,898
9,000 Citizen Watch Company............................................. 68,862
9,000 Dai Nippon Printing............................................... 152,542
4,000 Daiichi Pharm Company............................................. 56,949
9,000 Daikin Kogyo...................................................... 88,039
5,000 Daiwa House Industries............................................ 82,324
2,400 Fanuc............................................................. 103,903
6,000 Fujitsu........................................................... 66,828
20,000 Hitachi........................................................... 201,453
7,000 Honda Motor Company............................................... 144,407
9,000 Inax Corporation.................................................. 85,424
3,000 Isetan Company.................................................... 49,395
5,000 Ito Yokado Company................................................ 307,990
9,000 Keio Teito Electric Railway....................................... 52,387
11,000 Kintetsu.......................................................... 83,099
5,000 Kirin Brewery Company............................................. 59,080
5,000 Kuraray Company................................................... 54,722
2,000 Maeda Road Construction........................................... 36,998
3,000 Marui Company..................................................... 62,470
</TABLE>
151
<PAGE> 154
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
JAPAN--(CONTINUED)
16,000 Matsushita Electric Industrial Indiana............................ $ 260,339
4,000 Mitsubishi Bank................................................... 94,140
11,000 Mitsubishi Paper.................................................. 66,160
18,000 NGK............................................................... 179,564
9,000 Nichii Company.................................................... 119,419
1,100 Nintendo Company.................................................. 83,632
7,000 Nippon Denso...................................................... 130,847
8,000 Nippon Meat Packer................................................ 116,223
6,000 Nippon Steel Corporation.......................................... 20,571
1,000 Orix Corporation.................................................. 41,162
46,000 Osaka Gas Company................................................. 159,051
6,000 Pioneer Electronic................................................ 109,830
9,000 Sankyo Company.................................................... 202,228
3,000 Secom Company..................................................... 208,620
4,000 Seino Transportation.............................................. 67,022
21,000 Sekisui House..................................................... 268,475
6,000 Shinmaywa Industries.............................................. 49,511
3,000 Sony Corporation.................................................. 179,855
12,000 Sumitomo Bank..................................................... 254,528
8,000 Sumitomo Electric Industries...................................... 96,077
11,000 Takeda Chemical Industries........................................ 181,114
3,000 TDK Corporation................................................... 153,123
9,000 Tokio Marine & Fire............................................... 117,676
4,700 Tokyo Electric Power.............................................. 125,637
8,700 Tokyo Steel Manufacturing......................................... 160,097
5,000 Tonen Corporation................................................. 73,123
42,000 Toray Industries Inc.............................................. 276,610
32,000 Toshiba Corporation............................................... 250,731
6,000 Toyo Suisan Kaisha................................................ 74,383
3,000 Toyota Motor Corporation.......................................... 63,632
3,000 Yamazaki Baking Company........................................... 55,787
------------
6,638,484
------------
MALAYSIA--1.0%
2,000 Genting Berhad.................................................... 16,695
2,000 Hume Industries................................................... 9,607
8,000 Kuala Lumpur Kepong............................................... 25,357
4,000 Land & General.................................................... 8,663
5,000 Malayan Bank Berhad............................................... 42,131
2,000 Nestle Malay Berhad............................................... 14,647
9,000 Sime Darby Berhad................................................. 23,920
</TABLE>
152
<PAGE> 155
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
MALAYSIA--(CONTINUED)
4,000 Telekom Malaysia.................................................. $ 31,185
6,000 Tenaga Nasional................................................... 23,625
------------
195,830
------------
NETHERLANDS--5.6%
2,951 Abn Amro Holdings................................................. 134,429
400 DSM............................................................... 32,903
2,489 ING............................................................... 166,274
1,527 KPN............................................................... 55,477
1,200 Philips Electronic................................................ 43,373
2,650 Royal Dutch Petroleum............................................. 370,244
200 Royal Dutch Petroleum Company (ADR)............................... 28,225
1,120 Unilever.......................................................... 157,388
400 Ver Ned Uitgevers................................................. 54,914
------------
1,043,227
------------
NEW ZEALAND--1.9%
90,000 Brierley Investment LTD........................................... 71,195
41,000 Carter Holt Harvey................................................ 88,454
31,000 Fletcher Challenge................................................ 71,542
4,398 Fletcher Challenge Forest Division................................ 6,268
10,000 Telecom Corporation of New Zealand................................ 43,149
1,000 Telecom Corporation of New Zealand (ADR).......................... 69,375
------------
349,983
------------
SPAIN--2.6%
600 Banco Bilbao Vizcaya.............................................. 21,616
200 Banco Intercontinental............................................ 19,456
200 Banco Popular..................................................... 36,884
900 Banco Santander SA................................................ 45,185
600 Emp Nac Electricid................................................ 33,982
11,000 Iberdrola SA...................................................... 100,660
1,000 Repsol SA......................................................... 32,770
1,000 Repsol SA (ADR)................................................... 32,875
5,000 Sevillana De Electric............................................. 38,829
7,600 Telefonica De Espana.............................................. 105,260
1,000 Viscofan Envoltura................................................ 11,871
------------
479,388
------------
SWITZERLAND--2.1%
50 Ciba Geigy AG..................................................... 43,996
400 CS Holding........................................................ 41,006
99 Nestle SA......................................................... 109,514
</TABLE>
153
<PAGE> 156
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
SWITZERLAND--(CONTINUED)
10 Roche Holdings AG................................................. $ 79,107
41 Schw Bankgesellsch................................................ 44,430
15 Societe General Surveillance Holding.............................. 29,779
117 Zurich Verischerung............................................... 34,993
------------
382,825
------------
UNITED KINGDOM--15.9%
15,000 Asda Group........................................................ 25,858
9,000 Bass.............................................................. 100,427
8,200 BAT Industries.................................................... 72,207
25,000 BET............................................................... 49,309
3,000 Booker............................................................ 16,912
36,000 British Gas....................................................... 142,010
18,085 British Petroleum................................................. 150,966
34,000 British Telecom................................................... 186,395
3,643 Charter........................................................... 48,939
12,800 Coats Viyella..................................................... 34,689
25,000 FKI............................................................... 64,063
40,100 General Electric.................................................. 220,460
4,200 Glaxo Holdings.................................................... 59,683
23,000 Grand Metropolitan................................................ 165,561
14,400 Guinness.......................................................... 105,892
25,200 Hanson............................................................ 75,142
13,000 Hillsdown Holdings................................................ 34,322
36,000 House of Fraser................................................... 98,959
5,000 Legal & General................................................... 52,027
7,000 Lloyds Abbey Life................................................. 48,921
43,264 Lloyds TSB Group.................................................. 222,737
9,000 Lucas Industries.................................................. 25,299
11,500 Marks & Spencer................................................... 80,370
16,000 Mirror Group PLC.................................................. 43,733
8,000 National Power.................................................... 55,847
8,700 National Westminster Bank......................................... 87,621
6,000 Ocean Group....................................................... 36,155
8,500 Peninsular and Oriental Steam..................................... 62,836
5,000 Reckitt & Colman.................................................. 55,327
2,500 Redland........................................................... 15,084
5,000 RJB Mining........................................................ 42,398
22,000 Rolls Royce....................................................... 64,234
</TABLE>
154
<PAGE> 157
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
UNITED KINGDOM--(CONTINUED)
10,000 Royal Insurance................................................... $ 59,248
45,000 Sears............................................................. 72,682
6,000 Sedgwick Group.................................................... 11,275
4,500 Smith (W.H.) Group................................................ 29,632
6,000 Smithkline Beecham................................................ 65,414
19,000 TESCO............................................................. 87,638
5,000 Thames Water...................................................... 43,601
2,000 Unilever.......................................................... 41,078
------------
2,954,951
------------
Total Common Stocks (Identified Cost $15,636,097)............ $ 16,631,585
------------
PREFERRED STOCK--0.3%
ITALY--0.3%
31,000 Fiat SPA.......................................................... $ 56,608
------------
Total Preferred Stock (Identified Cost $65,481).............. $ 56,608
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- ---------
<S> <C> <C>
REPURCHASE AGREEMENT--8.5%
$1,580,000 State Street Bank & Trust Short Term Investor Fund 4.25%, 01/02/96
Collateral: U.S. Treasury Note $1,580,000, 5.75% due 9/30/97, Value
$1,616,155......................................................... $ 1,580,000
-----------
Total Repurchase Agreement (Identified Cost $1,580,000)....... $ 1,580,000
-----------
Total Investments (cost $17,281,578).................. 96.2% $18,268,193
Other Assets Less Liabilities......................... 1.8 330,022
------ -----------
Net Assets............................................ 100.0% $18,598,215
====== ===========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security
(ADR) American Depository Receipt
These abbreviations signify incorporation:
AG Aktein Giesellschaft
LTD Limited
SA Societe Anonyme
SPA Societa Per Azoine
155
<PAGE> 158
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- -----------
<S> <C> <C>
CORPORATE BONDS, CONVERTIBLE SECURITIES & COMMON STOCKS--94.7%
APPAREL & TEXTILES -- 1.0%
$150,000 Westpoint Stevens Inc. 8.75% 12/15/01............................. $ 150,563
------------
BASIC INDUSTRIES--3.8%
250,000 American Standard Inc., Zero Coupon 06/01/05...................... 213,750
50,000 Mark IV Industries Inc. 8.75% 04/01/03............................ 52,250
200,000 Rohr Inc. 11.625% 05/15/03........................................ 216,000
100,000 Westinghouse Air Brake Company 9.375% 06/15/05.................... 104,250
------------
586,250
------------
CABLE--9.0%
150,000 Century Communications Corporation 9.50% 03/01/05................. 154,125
350,000 Comcast Corporation 9.375% 05/15/05............................... 369,250
100,000 Comcast UK Cable LP, Zero Coupon 11/15/07......................... 58,500
150,000 Continental Cablevision Inc. 8.30% 05/15/06....................... 150,563
100,000 Jones Intercable Inc. 9.625% 03/15/02............................. 107,500
250,000 Lenfest Communications Inc. 8.375% 11/01/05....................... 250,937
250,000 Telewest PLC 9.625% 10/01/06...................................... 255,000
50,000 Turner Broadcasting Systems Inc.,
Convertible Deb Zero Coupon 02/13/07.............................. 22,500
------------
1,368,375
------------
CAPITAL GOODS AND SERVICES--1.9%
250,000 Waters Corporation 12.75% 09/30/04................................ 282,500
------------
CHEMICALS--4.9%
200,000 Agriculture Minerals and Chemicals 10.75% 09/30/03................ 220,000
200,000 General Chemical Corporation 9.25% 08/15/03....................... 202,000
100,000 Huntsman Corporation 10.625% 04/15/01............................. 111,750
100,000 Pioneer American Acquisition Corporation 13.375% 04/01/05......... 104,750
100,000 Terra Industries Inc. 10.50% 06/15/05............................. 110,250
------------
748,750
------------
CONSUMER DURABLES--1.0%
150,000 Sealy Corporation 9.50% 05/01/03.................................. 152,250
------------
CONSUMER NON-DURABLES--4.7%
350,000 American Safety Razor Company 9.875% 08/01/05..................... 356,125
250,000 Herff Jones Inc. 11.00% 08/15/05.................................. 267,500
100,000 Samsonite Corporation 11.125% 07/15/05............................ 98,000
------------
721,625
------------
</TABLE>
156
<PAGE> 159
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
CONTAINERS--4.6%
250,000 Buckeye Cellulose Corporation 8.50% 12/15/05...................... $ 257,812
150 MVE Holding Inc. (Wts)*........................................... 3,750
150,000 MVE Inc. 12.50% 02/15/02.......................................... 159,563
250,000 Owens Illinois Inc. 11.00% 12/01/03............................... 282,500
------------
703,625
------------
ENERGY--5.2%
500,000 Clark USA Inc. 10.875% 12/01/05................................... 523,750
150,000 Kenetech Corporation 12.75% 12/15/02(a)........................... 61,125
12,000 USX Marathon Group, Convertible Deb Zero Coupon 08/09/05.......... 5,580
100,000 Vintage Petroleum Inc. 9.00% 12/15/05............................. 101,250
100,000 YPF Sociedad Anonima 8.00% 02/15/04............................... 94,000
------------
785,705
------------
FOOD & BEVERAGES--1.0%
150,000 Cott Corporation 9.375% 07/01/05.................................. 150,000
------------
GAMING--3.9%
250,000 Ballys Grand Inc. 10.375% 12/15/03................................ 255,000
150,000 Harrahs Jazz 14.25% 11/15/01(b)................................... 41,625
200,000 Harrahs Operating Inc. 10.875% 04/15/02........................... 216,000
75,000 Trump Plaza Funding Inc. 10.875% 06/15/01......................... 77,625
------------
590,250
------------
HEALTH CARE--11.1%
350,000 Healthsouth Rehabilitation Corporation 9.50% 04/01/01............. 374,500
300,000 Ivac Corporation 9.25% 12/01/02................................... 310,500
150,000 Manor Care Inc. 9.50% 11/15/02.................................... 162,000
150,000 Mediq Inc. 7.50% 07/15/03......................................... 117,937
250,000 Regency Health Services Inc. 9.875% 10/15/02...................... 248,125
Tenet Healthcare Corporation
200,000 8.625% 12/01/03............................................... 209,750
250,000 9.625% 09/01/02............................................... 275,000
------------
1,697,812
------------
HOTELS & RESTAURANTS--5.0%
250,000 H M H Properties Inc. 9.50% 05/15/05.............................. 255,625
250,000 Hammon John Q. Hotels 8.875% 02/15/04............................. 245,625
250,000 La Quinta Inns Inc. 7.40% 09/15/05................................ 256,875
------------
758,125
------------
INSURANCE--0.4%
50,000 Leucadia National Corporation 10.375% 06/15/02.................... 54,955
------------
</TABLE>
157
<PAGE> 160
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
METALS & MINING--4.4%
$150,000 AK Steel Corporation 10.75% 04/01/04.............................. $ 165,563
250,000 Armco Inc. 9.375% 11/01/00........................................ 247,500
100,000 Kaiser Aluminum & Chemical Corporation 12.75% 02/01/03............ 110,000
150,000 Wheeling Pittsburgh Corporation 9.375% 11/15/03................... 141,750
------------
664,813
------------
PAPER & FOREST PRODUCTS--4.3%
250,000 Crown Paper Company 11.00% 09/01/05............................... 218,750
100,000 Riverwood International Corporation 11.25% 06/15/02............... 108,500
50,000 Riverwood International Corporation, Senior Subordinated Note
11.25% 06/15/02................................................... 54,250
250,000 SD Warren Company 12.00% 12/15/04................................. 275,313
------------
656,813
------------
PUBLISHING--1.0%
150,000 Time Warner Inc. 7.75% 06/15/05................................... 156,348
------------
RETAIL--7.9%
350,000 Barnes & Noble Inc. 11.875% 01/15/03.............................. 390,250
150,000 Brunos Inc. 10.50% 08/01/05....................................... 147,750
350,000 Corporate Express Inc. 9.125% 03/15/04............................ 354,375
Ralphs Grocery Company
200,000 10.45% 06/15/04................................................. 203,000
50,000 11.00% 06/15/05................................................. 49,500
50,000 Thrifty Payless Inc. 11.75% 04/15/03.............................. 54,250
------------
1,199,125
------------
TELECOMMUNICATIONS--11.2%
300,000 American Communications Services Inc., Zero Coupon 11/01/05....... 165,000
200,000 MFS Communication Inc., Zero Coupon 01/15/04...................... 161,000
$300,000 Mobile Telecommunication Technologies 13.50% 02/15/02............. 333,750
875 Pagemart Nationwide Inc........................................... 1,488
$250,000 Pagemart Nationwide Units, Zero Coupon 02/01/05................... 163,750
Paging Network Inc.
200,000 8.875% 02/01/06................................................. 205,000
150,000 10.125% 08/01/07................................................ 162,937
150,000 Panamsat L P 9.75% 08/01/00....................................... 159,000
100,000 Rogers Cantel Mobile Inc. 10.75% 11/01/01......................... 105,375
150,000 Rogers Communications Inc. 10.875% 04/15/04....................... 156,750
250,000 Rogers Communications Inc., Zero Coupon 05/20/13.................. 90,312
------------
1,704,362
------------
</TABLE>
158
<PAGE> 161
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<S> <C> <C>
TRANSPORTATION--4.8%
$150,000 Delta Air Lines Inc. 10.125% 05/15/10............................. $ 184,317
United Air Lines Inc.
96,214 9.02% 04/19/12................................................ 104,802
150,000 10.67% 05/01/04................................................ 181,660
250,000 Viking Star Shipping Inc. 9.625% 07/15/03......................... 257,500
------------
728,279
------------
UTILITIES--3.6%
350,000 Amerigas Partners L P 10.125% 04/15/07............................ 378,875
164,508 Midland Funding Corporation I 10.33% 07/23/02..................... 171,088
------------
549,963
------------
Total Corporate Bonds, Convertible Securities & Common Stocks
(Identified Cost $14,105,829)................................. $14,410,488
------------
REPURCHASE AGREEMENT--3.2%
$495,000 State Street Bank & Trust Repurchase Agreement 2.25% 01/02/96
Collateral: U.S. Treasury Note $495,000, 5.75% due 9/30/97 Value
$506,327.......................................................... $ 495,000
------------
Total Repurchase Agreement (Identified Cost $495,000)..... $ 495,000
-----------
Total Investments (cost $14,600,829).................. 97.9% $14,905,488
Other Assets Less Liabilities......................... 2.1% 317,581
----- -----------
Net Assets............................................ 100.0% $15,223,069
===== ===========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security
(a) Portfolio has ceased accrual of income due to uncertainty of collection.
(b) In bankruptcy; Portfolio has ceased accrual of interest.
159
<PAGE> 162
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value................ $169,553,637 $165,478,164 $1,261,800,847 $ 18,268,193 $14,905,488
Foreign currency at value
(cost--$117,981)................... -- -- -- 115,470 --
Cash................................. 2,090 4,059 1,811 6,881 1,440
Receivable for foreign currency sold
(net).............................. -- -- -- 178,285 --
Receivable for investments sold...... -- 1,018,035 -- 121,815 --
Receivable for fund shares sold...... 510,352 111,059 1,923,148 339,057 50,643
Dividends receivable................. 159,053 231,362 1,171,275 43,854 --
Interest receivable.................. 149 55,813 942,930 560 292,273
Receivable from Adviser.............. 6,071 7,166 11,495 7,954 5,361
------------ ------------ ------------ ----------- ----------
Total assets............... 170,231,352 166,905,658 1,265,851,506 19,082,069 15,255,205
------------ ------------ ------------ ----------- ----------
LIABILITIES:
Payable for investments purchased.... 2,104,074 633,282 -- 434,648 5,557
Payable for fund shares redeemed..... 29,595 78,442 202,646 5,326 360
Investment advisory fee payable...... 83,487 83,638 632,018 12,915 7,610
Other payables and accrued
expenses........................... 51,533 49,162 298,865 30,965 18,609
------------ ------------ ------------ ----------- ----------
Total liabilities.......... 2,268,689 844,524 1,133,529 483,854 32,136
------------ ------------ ------------ ----------- ----------
Net Assets:
Accumulated paid-in capital..... 127,569,621 152,267,215 938,232,989 17,420,106 14,882,832
Accumulated undistributed net
investment income............. 983,203 1,108,971 3,366,086 -- --
Accumulated undistributed net
realized gain on
investments................... 3,039,146 1,877,923 15,370,164 15,720 35,578
Net unrealized appreciation on
investments and translation of
foreign currencies denominated
amounts....................... 36,370,693 10,807,025 307,748,738 1,162,389 304,659
------------ ------------ ------------ ----------- ----------
Total Net Assets........... $167,962,663 $166,061,134 $1,264,717,977 $ 18,598,215 $15,223,069
============ ============ ============ =========== ==========
Fund shares outstanding.............. 7,194,606 8,983,636 45,077,890 3,450,872 2,864,651
------------ ------------ ------------ ----------- ----------
NET ASSET VALUE PER SHARE............ $23.35 $18.48 $28.06 $5.39 $5.31
============ ============ ============ =========== ==========
INVESTMENTS AT COST.................. $133,182,944 $154,671,139 $ 954,052,109 $ 17,281,578 $14,600,829
</TABLE>
See accompanying notes to financial statements.
160
<PAGE> 163
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................ $1,837,087* $ 2,046,921 $ 16,580,694 $ 245,844** $ --
Interest............................. 1,459,748 1,809,711 7,509,400 57,993 774,267
----------- ---------- ------------ -------- --------
Total........................... 3,296,835 3,856,632 24,090,094 303,837 774,267
----------- ---------- ------------ -------- --------
OPERATING EXPENSES:
Investment advisory fee.............. 752,635 907,835 5,852,587 94,931 49,627
Custodian and fund accounting fees... 61,161 76,885 145,628 117,473 52,209
Reports and notices to
shareholders....................... 45,111 60,420 310,222 13,209 9,113
Trustees' fees and expenses.......... 6,946 7,561 33,941 4,492 4,395
Registration fees.................... 13,854 1,091 77,868 4,548 4,366
Audit and legal fees................. 16,428 17,928 67,378 12,310 11,910
Miscellaneous........................ 8,091 11,422 59,346 368 281
----------- ---------- ------------ -------- --------
Total operating expenses........ 904,226 1,083,142 6,546,970 247,331 131,901
----------- ---------- ------------ -------- --------
Less: expense reimbursement..... (35,480) (41,237) (57,047) (74,222) (61,596)
----------- ---------- ------------ -------- --------
Total operating expense, net of
reimbursement................. 868,746 1,041,905 6,489,923 173,109 70,305
----------- ---------- ------------ -------- --------
NET INVESTMENT INCOME......... 2,428,089 2,814,727 17,600,171 130,728 703,962
----------- ---------- ------------ -------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS--NET:
Net realized gain on security
transactions of foreign currencies
denominated amounts................ 6,085,294 5,376,891 41,673,988 791,046 88,147
Net realized (loss) on futures
transactions....................... -- (22,493) -- -- --
----------- ---------- ------------ -------- --------
Net realized gain on investments..... 6,085,294 5,354,398 41,673,988 791,046 88,147
Net change in unrealized appreciation
on investments and translation of
foreign currencies denominated
amounts............................ 30,328,567 9,411,583 289,371,401 1,149,623 307,380
----------- ---------- ------------ -------- --------
Net realized gain and change in
unrealized appreciation on
investments................... 36,413,861 14,765,981 331,045,389 1,940,669 395,527
----------- ---------- ------------ -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..... $38,841,950 $17,580,708 $348,645,560 $ 2,071,397 $1,099,489
=========== ========== ============ ======== ========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Net of foreign taxes withheld of $1,737.
** Net of foreign taxes withheld of $36,349.
161
<PAGE> 164
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL CAP PORTFOLIO
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................... $ 2,428,089 $ 1,444,886 $ 2,814,727 $ 1,706,970
Net realized gain (loss) on
investments........................... 6,085,294 2,890,705 5,376,891 3,313,275
Net realized (loss) on futures and
options............................... -- 33,031 (22,493) (344,805)
Net change in unrealized appreciation
(depreciation) on investments......... 30,328,567 (1,413,584) 9,411,583 (4,304,308)
------------ ----------- ------------ ------------
Net increase in net assets resulting
from operations..................... 38,841,950 2,955,038 17,580,708 371,132
------------ ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income.................... (2,889,772) (719,079) (3,411,512) (655,181)
Net realized gains....................... (5,969,884) (1,261,062) (6,433,570) (6,490,205)
------------ ----------- ------------ ------------
Total dividends and distributions to
shareholders..................... (8,859,656) (1,980,141) (9,845,082) (7,145,386)
------------ ----------- ------------ ------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales.................. 62,629,132 36,853,860 44,205,647 82,603,902
Reinvestment of dividends and
distributions......................... 8,859,656 1,980,141 9,845,082 7,145,386
Cost of shares redeemed.................. (22,091,871) (17,397,782) (40,604,991) (43,730,548)
------------ ----------- ------------ ------------
Net increase in net assets from fund
share transactions.................. 49,396,917 21,436,219 13,445,738 46,018,740
------------ ----------- ------------ ------------
Total increase in net assets........ 79,379,211 22,411,116 21,181,364 39,244,486
Net Assets:
Beginning of year........................ 88,583,452 66,172,336 144,879,770 105,635,284
------------ ----------- ------------ ------------
End of year.............................. $167,962,663 $ 88,583,452 $166,061,134 $144,879,770
============ =========== ============ ============
SHARES ISSUED AND REDEEMED:
Issued................................... 2,917,293 2,052,022 2,482,444 4,739,410
Issued in reinvestment of dividends and
distributions......................... 427,111 111,494 562,375 397,629
Redeemed................................. (1,033,626) (966,425) (2,310,588) (2,559,455)
------------ ----------- ------------ ------------
Net increase.......................... 2,310,778 1,197,091 734,231 2,577,584
============ =========== ============ ============
</TABLE>
See accompanying notes to financial statements.
162
<PAGE> 165
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD BOND
GROWTH PORTFOLIO PORTFOLIO
MANAGED PORTFOLIO ------------------------------ ------------------------------
-------------------------------- PERIOD FROM PERIOD FROM
YEAR ENDED YEAR ENDED YEAR ENDED NOVEMBER 18- YEAR ENDED NOVEMBER 18-
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994 1995 1994
-------------- ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
$ 17,600,171 $ 14,234,085 $ 130,728 $ 1,889 $ 703,962 $ 11,534
41,673,988 25,918,208 791,046 7 88,147 (864)
-- -- -- -- -- --
289,371,401 (25,430,097) 1,149,623 12,766 307,380 (2,721)
----------- ---------- ----------- ---------- ------------ -----------
348,645,560 14,722,196 2,071,397 14,662 1,099,489 7,949
----------- ---------- ----------- ---------- ------------ -----------
(28,468,170) (12,082,273) (132,550) -- (703,962) (11,534)
(52,222,032) (16,217,572) (775,819) -- (51,705) --
----------- ---------- ----------- ---------- ------------ -----------
(80,690,202) (28,299,845) (908,369) -- (755,667) (11,534)
----------- ---------- ----------- ---------- ----------- -----------
369,378,051 287,298,662 18,493,638 3,366,154 16,124,613 1,413,869
80,690,202 28,299,845 908,369 -- 755,667 11,534
(142,557,183) (137,931,827) (5,213,592) (134,044) (3,422,241) (610)
----------- ---------- ----------- ---------- ------------ -----------
307,511,070 177,666,680 14,188,415 3,232,110 13,458,039 1,424,793
----------- ---------- ----------- ---------- ------------ -----------
575,466,428 164,089,031 15,351,443 3,246,772 13,801,861 1,421,208
689,251,549 525,162,518 3,246,772 -- 1,421,208 --
----------- ---------- ----------- ---------- ------------ -----------
$1,264,717,977 $ 689,251,549 $ 18,598,215 $ 3,246,772 $ 15,223,069 $ 1,421,208
=========== ========== =========== ========== ============ ===========
14,304,013 13,624,471 3,624,156 682,464 3,082,804 283,295
3,287,658 1,362,535 167,698 -- 143,495 2,316
(5,611,704) (6,483,714) (996,098) (27,348) (647,136) (123)
----------- ---------- ----------- ---------- ------------ -----------
11,979,967 8,503,292 2,795,756 655,116 2,579,163 285,488
=========== ========== =========== ========== ============ ===========
</TABLE>
163
<PAGE> 166
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992 1991
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................ $ 18.14 $ 17.95 $ 17.23 $ 15.24 $ 11.92
-------- ------- ------- ------- -------
Income from investment operations:
Net investment income........................... 0.33 0.28 0.18 0.17 0.24
Net realized and unrealized gain on
investments.................................. 6.38 0.41 1.13 2.49 3.42
-------- ------- ------- ------- -------
Total from investment operations........ 6.71 0.69 1.31 2.66 3.66
-------- ------- ------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net
investment income............................ (0.49) (0.18) (0.17) (0.24) (0.34)
Distribution to shareholders from net capital
gains........................................ (1.01) (0.32) (0.42) (0.43) --
-------- ------- ------- ------- -------
Total dividends and distributions....... (1.50) (0.50) (0.59) (0.67) (0.34)
-------- ------- ------- ------- -------
Net asset value, end of year...................... $ 23.35 $ 18.14 $ 17.95 $ 17.23 $ 15.24
======== ======= ======= ======= =======
Total return............................ 38.4% 3.9% 7.8% 17.9% 31.2%
-------- ------- ------- ------- -------
Net assets, end of year (000)..................... $167,963 $88,583 $66,172 $33,581 $17,221
-------- ------- ------- ------- -------
Ratio of net operating expenses to average net
assets.......................................... 0.69%(1) 0.67%(1) 0.72% 0.79% 0.86%
-------- ------- ------- ------- -------
Ratio of net investment income to average net
assets.......................................... 1.94%(1) 1.81%(1) 1.47% 1.48% 2.09%
-------- ------- ------- ------- -------
Portfolio turnover................................ 29% 38% 15% 27% 41%
-------- ------- ------- ------- -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .72% and 1.91%,
respectively, in 1995; and .69% and 1.79%, respectively, in 1994.
164
<PAGE> 167
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 17.56 $ 18.62 $ 16.72 $ 15.11 $ 10.46
-------- -------- -------- ------- -------
Income from investment operations:
Net investment income..................... 0.32 0.19 0.10 0.09 0.09
Net realized and unrealized gain (loss) on
investments............................ 1.75 (0.16) 2.98 3.05 4.86
-------- -------- -------- ------- -------
Total from investment
operations...................... 2.07 0.03 3.08 3.14 4.95
-------- -------- -------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net
investment income...................... (0.40) (0.10) (0.10) (0.10) (0.30)
Distribution to shareholders from net
capital gains.......................... (0.75) (0.99) (1.08) (1.43) --
-------- -------- -------- ------- -------
Total dividends and
distributions................... (1.15) (1.09) (1.18) (1.53) (0.30)
-------- -------- -------- ------- -------
Net asset value, end of year................ $ 18.48 $ 17.56 $ 18.62 $ 16.72 $ 15.11
======== ======== ======== ======= =======
Total return...................... 12.3% 0.0% 19.5% 21.5% 48.1%
-------- -------- -------- ------- -------
Net assets, end of year (000)............... $166,061 $144,880 $105,635 $ 31,211 $ 9,777
-------- -------- -------- ------- -------
Ratio of net operating expenses to average
net assets ............................... 0.69%(1) 0.66%(1) 0.74% 0.86% 1.00%(1)
-------- -------- -------- ------- -------
Ratio of net investment income to average net
assets . 1.86%(1) 1.30%(1) 1.06% 1.05% 1.41%(1)
-------- -------- -------- ------- -------
Portfolio turnover.......................... 70% 58% 70% 105% 120%
-------- -------- -------- ------- -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of
net investment income to average net assets would have been .72% and 1.83%,
respectively, in 1995; .67% and 1.29%, respectively, in 1994; and 1.19% and
1.22%, respectively, in 1991.
165
<PAGE> 168
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1995 1994 1993 1992 1991
---------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.................. $ 20.82 $ 21.35 $ 20.11 $ 17.56 $ 12.43
-------- -------- -------- ------- -------
Income from investment operations:
Net investment income............................. 0.40 0.40 0.46 0.25 0.29
Net realized and unrealized gain on investments... 8.97 0.15 1.55 2.95 5.31
-------- -------- -------- ------- -------
Total from investment operations.......... 9.37 0.55 2.01 3.20 5.60
-------- -------- -------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net investment
income......................................... (0.75) (0.46) (0.24) (0.27) (0.39)
Distribution to shareholders from
net capital gains.............................. (1.38) (0.62) (0.53) (0.38) (0.08)
-------- -------- -------- ------- -------
Total dividends and distributions......... (2.13) (1.08) (0.77) (0.65) (0.47)
-------- -------- -------- ------- -------
Net asset value, end of year........................ $ 28.06 $ 20.82 $ 21.35 $ 20.11 $ 17.56
======== ======== ======== ======= =======
Total return.............................. 46.9% 2.6% 10.4% 18.6% 46.0%
-------- -------- -------- ------- -------
Net assets, end of year (000)....................... $1,264,718 $689,252 $525,163 $236,175 $98,468
-------- -------- -------- ------- -------
Ratio of net operating expenses to average
net assets ....................................... 0.67%(1) 0.64%(1) 0.66% 0.69% 0.73%
-------- -------- -------- ------- -------
Ratio of net investment income to average
net assets ....................................... 1.80%(1) 2.23%(1) 3.21% 2.06% 2.42%
-------- -------- -------- ------- -------
Portfolio turnover.................................. 31% 33% 21% 23% 57%
-------- -------- -------- ------- -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of
net investment income to average net assets would have been .67% and 1.80%,
respectively, in 1995; and .64% and 2.23%, respectively, in 1994.
166
<PAGE> 169
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
PERIOD OF
YEAR ENDED NOVEMBER 18, 1994-
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- ------------------
<S> <C> <C>
Net asset value, beginning of year........................ $ 4.96 $ 5.00
------- ------
Income from investment operations:
Net investment income................................ 0.04 --
Net realized and unrealized gain (loss) on
investments........................................ 0.67 (0.04)
------- ------
Total from investment operations................ 0.71 (0.04)
------- ------
Less dividends and distributions:
Dividends to shareholders from net investment
income............................................. (0.04) --
Distribution to shareholders from net capital
gains.............................................. (0.24) --
------- ------
Total dividends and distributions............... (0.28) --
------- ------
Net asset value, end of year.............................. $ 5.39 $ 4.96
======= ======
Total return.................................... 14.6% (0.8)%**
------- ------
Net assets, end of year (000)............................. $18,598 $3,247
------- ------
Ratio of net operating expenses to average net assets..... 1.55%(1) 1.55%*(1)
------- ------
Ratio of net investment income to average net assets...... 1.17%(1) 0.80%*(1)
------- ------
Portfolio turnover........................................ 27% 0%
------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Annualized.
** Not annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been 2.21% and .51%,
respectively, in 1995; and 8.85% and (6.34%), respectively, in 1994.
167
<PAGE> 170
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
PERIOD OF
YEAR ENDED NOVEMBER 18, 1994-
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- ------------------
<S> <C> <C>
Net asset value, beginning of year........................ $ 4.98 $ 5.00
------ ------
Income from investment operations:
Net investment income................................ 0.45 0.04
Net realized and unrealized gain (loss) on
investments........................................ 0.35 (0.01)
------ ------
Total from investment operations................ 0.80 0.03
------ ------
Less dividends and distributions:
Dividends to shareholders from net investment
income............................................. (0.45) (0.05)
Distribution to shareholders from net capital
gains.............................................. (0.02) --
------ ------
Total dividends and distributions............... (0.47) (0.05)
------ ------
Net asset value, end of year.............................. $ 5.31 $ 4.98
------ ------
Total return.................................... 16.6% 0.5%**
------ ------
Net assets, end of year (000)............................. $15,223 $1,421
------ ------
Ratio of net operating expenses to average net assets..... 0.85%(1) 0.85%*(1)
------ ------
Ratio of net investment income to average net assets...... 8.51%(1) 7.84%*(1)
------ ------
Portfolio turnover........................................ 115% 0%
------ ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Annualized.
** Not annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been 1.59% and 7.77%,
respectively, in 1995; and 7.80% and .80%, respectively, in 1994.
168
<PAGE> 171
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS FOR ALL PORTFOLIOS
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Enterprise Accumulation Trust (the "Trust") was organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Trust is
authorized to issue an unlimited number of five classes of shares of beneficial
interest at $.01 par value: the Equity Portfolio, the Small Cap Portfolio, the
Managed Portfolio, the International Growth Portfolio and the High-Yield Bond
Portfolio. The Trust serves as an investment vehicle for MONYMaster, a flexible
payment variable annuity policy, and MONYEquity Master, a flexible premium
variable universal life insurance policy, both issued by MONY America, a
wholly-owned subsidiary of Mutual Life Insurance Company of New York ("MONY").
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.
(A) Valuation of Investments:
The Equity, Small Cap, Managed and High-Yield Bond Portfolios: Investment
securities, other than debt securities, listed on a national securities exchange
or traded in the over-the-counter National Market System are valued each
business day at the last reported sales price; if there are no such reported
sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Debt securities (other than certain
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Trustees. Short-term debt securities having a
remaining maturity of sixty days or less are valued at amortized cost, which
approximates market value. Any securities for which market quotations are not
readily available are valued at their fair value as determined in good faith by
the Board of Trustees.
The International Growth Portfolio: Foreign securities are valued on the
basis of independent pricing services approved by the Board of Trustees, and
such pricing services generally follow the same valuation procedures.
(B) Foreign Currency Translation:
Securities, other assets and liabilities of the International Growth
Portfolio whose values are initially expressed in foreign currencies are
translated to U.S. dollars at the bid price of such currency against U.S.
dollars last quoted by a major bank. Dividend and interest income and certain
expenses denominated in foreign currencies are marked-to-market daily based on
daily exchange rates and exchange gains and losses are realized upon ultimate
receipt or disbursement. The Trust does not isolate that portion of its realized
and unrealized gains on investments from changes in foreign exchange rates from
fluctuations arising from changes in the market prices of the investments.
(C) Special Valuation Concerns:
The high yield securities in which the High-Yield Bond Portfolio may invest
may be considered speculative in regards to the issuer's continuing ability to
meet principal and interest payments. The value of the lower rated securities in
which the High-Yield Bond Portfolio may invest will be affected by the credit
worthiness of individual issuers, general economic and specific industry
conditions, and will fluctuate inversely with changes in interest rates. In
addition, the secondary trading market for lower quality bonds may be less
active and less liquid than the trading market for higher quality bonds.
(D) Repurchase Agreements:
Each Portfolio may acquire securities subject to repurchase agreements.
Under a typical repurchase agreement, a Portfolio would acquire a debt security
for a relatively short period (usually for one day and not for more than one
week) subject to an obligation of the seller to repurchase and of the Portfolio
to resell the debt security at an agreed upon higher price, thereby establishing
a fixed investment return during the
169
<PAGE> 172
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS FOR ALL PORTFOLIOS (CONTINUED)
DECEMBER 31, 1995
Portfolio's holding period. Under each repurchase agreement, the selling
institution is required to maintain, as collateral, securities whose market
value (including interest) is at least equal to the repurchase price.
(E) Federal Income Taxes:
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its taxable income to shareholders; accordingly, no Federal
income tax provision is required.
(F) Security Transactions and Other Income:
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Dividend income is recorded on
the ex-dividend date and interest income is accrued as earned. Discounts or
premiums on debt securities purchased are accreted or amortized to interest
income over lives of the respective securities.
(G) Dividends and Distributions:
The Equity, Small Cap, Managed and International Growth Portfolios:
Dividends and distributions to shareholders from net investment income and net
realized capital gains, if any, are declared and paid at least annually. The
High-Yield Bond Portfolio: Dividends from net investment income are declared
daily and paid monthly. Distributions from net realized capital gains, if any,
are declared and paid at least annually.
(H) Allocation of Expenses:
Expenses specifically identifiable to a particular Portfolio are borne by
that Portfolio. Other expenses are allocated to each Portfolio based on its net
assets in relation to the total net assets of all the applicable Portfolios or
another reasonable basis.
(I) Futures Contracts:
Upon entering into such a contract, a Portfolio is required to deposit with
the broker an amount of cash or securities equal to the minimum "initial margin"
requirements of the exchange. Pursuant to the contract, the Portfolio agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments, known as
"variation margin," are recorded by the Portfolio as unrealized appreciation or
depreciation. When the contract is closed the Portfolio records a realized gain
or loss equal to the difference between the value of the contract at the time it
was opened and value at the time it was closed and reverses any unrealized
appreciation or depreciation previously recorded. There were no open futures
contracts held in any of the Portfolios at December 31, 1995.
(J) Forward Currency Contracts:
As part of its investment program, the International Growth Portfolio
utilizes forward currency exchange contracts to manage exposure to currency
fluctuations and hedge against adverse changes in connection with purchases and
sales of securities. The Portfolio may be required to set aside liquid assets in
a segregated custodial account to cover its obligation. The Portfolio enters
into forward contracts only for hedging purposes. At December 31, 1995, the
International Growth Portfolio had entered into various forward currency
exchange contracts under which it is obligated to exchange currencies at
specified future dates. Risks arise
170
<PAGE> 173
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS FOR ALL PORTFOLIOS (continued)
December 31, 1995
from the possible inability of counterparties to meet the terms of their
contracts and from movements in currency values. Outstanding contracts at
December 31, 1995 are as follows.
<TABLE>
<CAPTION>
CONTRACT TO NET UNREALIZED
SETTLEMENT ----------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
- ---------- --------------- --------------- --------------
<S> <C> <C> <C>
1/19/96 USD 282,616 BEL 8,600,000 $ (9,950)
1/19/96 CAD 2,730,000 USD 2,026,631 (27,437)
1/19/96 USD 638,500 CAD 875,000 (2,268)
1/19/96 USD 472,312 CHF 560,000 (14,276)
1/19/96 CHF 220,000 USD 193,509 (2,349)
1/19/96 USD 852,309 DEM 1,240,000 (13,088)
1/19/96 USD 1,289,807 FRF 6,500,000 (38,124)
1/19/96 USD 860,070 GBP 555,000 (1,431)
1/19/96 GBP 396,518 SEK 608,811 6,687
1/19/96 ITL 950,000,000 USD 579,521 16,925
1/19/96 USD 6,154,844 JPY 607,000,000 257,899
1/19/96 JPY 175,000,000 USD 1,721,594 (21,486)
1/3/96 MYR 44,539 USD 17,535 1
1/19/96 USD 871,450 NLG 1,430,000 (20,822)
1/19/96 SEK 4,100,000 USD 560,952 55,423
1/19/96 GBP 396,518 SEK 4,100,000 (7,565)
---------
$178,139
=========
</TABLE>
Net unrealized appreciation on these contracts at December 31, 1995 is
included in receivable for foreign currency sold, net, in the accompanying
financial statements.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTION WITH AFFILIATES
The investment advisory fee is payable monthly to Enterprise Capital
Management, Inc. ("Enterprise Capital"), a wholly-owned subsidiary of MONY, and
is computed as a percentage of each Portfolio's net assets as of the close of
business each day at the following annual rates: .60% for each of the Equity,
Small Cap, Managed and High-Yield Bond Portfolios; .85% for the International
Growth Portfolio.
Enterprise Capital has agreed to reimburse the International Growth and
High-Yield Bond Portfolios for expenses incurred in excess of a percentage of
average net assets. The percentages are as follows: International Growth
Portfolio--1.55%, High-Yield Bond Portfolio--.85%. In addition, Enterprise
Capital has agreed to reimburse the Equity, Small Cap and Managed Portfolios for
their fund accounting expenses through December 31, 1995.
Enterprise Capital has entered into sub-advisory agreements with various
investment advisers as Portfolio Managers for the Trust. A portion of the
management fee received by Enterprise Capital is paid to the Portfolio Manager.
171
<PAGE> 174
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS FOR ALL PORTFOLIOS (continued)
December 31, 1995
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1995, purchases and sales proceeds of
investment securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
PURCHASES
Stocks and bonds.................... $53,285,127 $96,273,922 $495,665,400 $15,303,131 $20,636,348
U.S. government obligations......... -- -- -- -- 1,648,625
SALES PROCEEDS
Stocks and bonds.................... 29,623,108 87,437,229 272,478,804 2,445,362 7,892,217
U.S. government obligations......... -- -- -- -- 1,653,789
</TABLE>
(4) UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS AND DISTRIBUTIONS
At December 31, 1995, the composition of unrealized appreciation
(depreciation) of investment securities and the cost of investment for Federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
APPRECIATION (DEPRECIATION) NET TAX COST
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Equity Portfolio........................... $ 36,931,047 $ (620,585) $ 36,310,462 $ 133,243,175
Small Cap Portfolio........................ 19,968,194 (9,293,430) 10,674,764 154,803,400
Managed Portfolio.......................... 320,294,701 (12,577,993) 307,716,708 954,084,139
International Growth Portfolio............. 1,345,077 (388,749) 956,328 17,311,865
High-Yield Bond Portfolio.................. 530,745 (226,611) 304,134 14,601,354
</TABLE>
The capital gains dividend distribution paid to shareholders for 1995,
taken in additional shares, is as follows:
<TABLE>
<CAPTION>
LONG TERM
CAPITAL GAINS
-------------
<S> <C>
Equity Portfolio................................................................ $ 5,435,656
Small Cap Portfolio............................................................. 4,436,609
Managed Portfolio............................................................... 52,104,428
</TABLE>
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions, losses deferred due to wash sales, foreign
currency transactions, and excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital. Any taxable
gain remaining at fiscal year end is distributed in the following year.
172
<PAGE> 175
TRUSTEES AND PRINCIPAL OFFICERS
<TABLE>
<S> <C>
Victor Ugolyn Trustee, Chairman, President and
Chief Executive Officer
Arthur T. Dietz Trustee
Samuel J. Foti Trustee
Arthur Howell Trustee
William A. Mitchell, Jr. Trustee
Lonnie H. Pope Trustee
Michael I. Roth Trustee
Phillip G. Goff Vice President
Catherine R. McClellan Secretary
Herbert M. Williamson Treasurer
</TABLE>
INVESTMENT ADVISER
Enterprise Capital Management, Inc.
Atlanta Financial Center
3343 Peachtree Road, Suite 450
Atlanta, Georgia 30326
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P. O. Box 1713
Boston, Massachusetts 02105
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
1100 Campanile Building
1155 Peachtree Street
Atlanta, Georgia 30309
This report is authorized for distribution only to shareholders and to
others who have received a copy of this Trust's prospectus.
173
<PAGE> 176
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Enterprise Accumulation Trust:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of each of the portfolios of Enterprise
Accumulation Trust (Equity, Small Cap, Managed, International Growth, and
High-Yield Bond Portfolios) as of December 31, 1995 and the related statements
of operations for the year then ended and the statements of changes in net
assets and the financial highlights for each of the two years in the period then
ended. 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. The financial highlights for each of the three years in the period ended
December 31, 1993 were audited by other auditors, whose report dated February
18, 1994, expressed an unqualified opinion thereon.
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 and brokers. 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
Enterprise Accumulation Trust (Equity, Small Cap, Managed, International Growth,
and High-Yield Bond Portfolios) as of December 31, 1995, and the results of
their operations for the year then ended, and the changes in their net assets
and their financial highlights for each of the two years in the period then
ended in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Atlanta, Georgia
February 22, 1996
174
<PAGE> 177
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED BY
LOGO
We at OpCap Advisors are pleased to report on the investment activities and
results of the portfolios in the Quest for Value Accumulation Trust for 1995, a
very favorable year for investors. Prices of stocks and bonds rose sharply
during the year in an environment of declining interest rates, low inflation,
strong corporate profits and slow economic growth.
OUR VALUE-BASED INVESTMENT PHILOSOPHY
The portfolios in the Quest for Value Accumulation Trust are intended for
the long-term investor who seeks to preserve capital and make it grow. Our
objective in managing the portfolios is to deliver above-average returns with
below-average risk.
Our philosophy in buying common stocks is to purchase quality companies at
reasonable prices. We believe the single most important determinant of whether a
stock will increase in value is the rate of return on invested capital within
the company. In our view, companies with high returns can compound their capital
and increase their value for extended periods. Therefore, we look for companies
with above-average returns where those returns are protected by strong
competitive positions. Moreover, we want these companies to use their cash flow
to benefit shareholders -- through stock buybacks or astute acquisitions, for
instance. We stick with good companies until their value is reflected in the
stock price, or until we find companies that offer even better value.
Similarly, we are value investors in the bond market. We seek to preserve
capital and maximize income by looking for sector, maturity and quality groups
that provide the highest yield at the lowest price with the least amount of
risk. We avoid such techniques as interest rate forecasting and market timing,
which in our view tend to increase volatility and add to risk.
NAME CHANGES
In November, the Trust's investment adviser changed its name from Quest for
Value Advisors to OpCap Advisors. Effective May 1, 1996, the name of the
Accumulation Trust will become OCC Accumulation Trust. These name changes will
link both the Trust and its adviser more closely to Oppenheimer Capital, the
adviser's parent. OpCap is short for Oppenheimer Capital, while OCC is the New
York Stock Exchange symbol of the publicly traded partnership which owns a
majority interest in Oppenheimer Capital. Most important of all, these name
changes have no effect on the investment philosophy or structure of the
Accumulation Trust. The same professionals continue to manage the portfolios of
the Trust, employing the same value philosophy and backed by the same
organization and support staff.
175
<PAGE> 178
EQUITY PORTFOLIO
The Equity Portfolio continued its excellent performance in 1995. The
Portfolio invests primarily in the common stocks of large and mid-sized
companies. Its total return of 38.9% in 1995 exceeded the total return of 37.6%
with dividends included for the Standard & Poor's 500 Index (S&P 500), an
unmanaged index of 500 of the largest corporations weighted by market
capitalization. This performance was sixth best among the 39 capital
appreciation funds in Lipper's Variable Insurance Products Performance Analysis
Service Report. The Portfolio's 1995 performance included a total return of
12.5% in the second fiscal half, compared with 14.4% for the S&P 500.
For the five years ended December 31, 1995, the Portfolio's average annual
total return of 19.2%* exceeded the 16.6% average annual return of the S&P 500
Index. The Portfolio's five-year performance ranked 10th among the 21 portfolios
in the Lipper capital appreciation category. The Portfolio's average annual
total return since its inception on August 1, 1988 has been 15.6%*, compared
with 15.2% for the S&P 500. Returns for the Portfolio take into account expenses
incurred by the Portfolio, but not other charges imposed by the Variable
Accounts.
The Portfolio achieved above-market returns in 1995 despite a conservative
investment posture, including a sizable cash position, and without making
significant investments in technology stocks. The Portfolio benefited from good
stock selection, as a number of its major positions outperformed the S&P 500.
The five stocks which contributed most to the Portfolio's performance in 1995
were EXEL Ltd., Federal Home Loan Mortgage Corp. (Freddie Mac), Intel Corp.,
Citicorp and McDonnell Douglas Corp.
The Portfolio's performance was helped also by its substantial holdings of
financial service company stocks, which were among the market leaders for the
year. Such securities, representing 32% of the Portfolio's net assets as of
December 31, 1995, include an eclectic group of specialty insurers and other
financial service companies. Most have been investments of long standing that
appeared undervalued to us regardless of the interest rate environment, although
the decline in rates in 1995 did help fuel their market performance.
As of December 31, 1995, the Portfolio's net assets were allocated 82% to
equities and 21% to cash and cash equivalents, with 3% in liabilities in excess
of other assets. Major portfolio changes during the second half included new
positions in the common stocks of Prudential Reinsurance Holdings, Inc., Shaw
Industries, Inc. and Varity Corp. Positions that were eliminated included Mellon
Bank Corp., Morgan Stanley Group, Inc., Premark International, Inc. and Sara Lee
Corp.
The Portfolio owned the common stocks of 41 companies as of December 31,
1995. Major industry positions were in the insurance, financial services,
banking, aerospace & defense and retail sectors. The Portfolio's five largest
equity positions were Federal Home Loan Mortgage Corp. (Freddie Mac), the second
largest insurer of home mortgages in the United States; EXEL Ltd., a strongly
capitalized specialty insurance company; Citicorp, a leading bank; May
Department Stores Co., a leading retailer; and Becton, Dickinson & Co., a
worldwide producer of medical products and diagnostic test systems.
- ---------------
* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the Old
Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of the Equity Portfolio immediately after the transaction were
$86,789,755 in the Old Trust and $3,764,598 in the Present Trust. For the
periods prior to September 16, 1994, the performance reflects the performance of
the corresponding Equity Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST EQUITY PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON S&P 500 INDEX+
<TABLE>
<CAPTION>
Measurement Period Equity Port- S & P 500
(Fiscal Year Covered) folio Index*
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10190 10383
12/31/89 12500 13673
12/31/90 12223 13249
12/31/91 16038 17285
12/31/92 18909 18602
12/31/93 20393 20475
12/31/94 21171 20746
12/31/95 29396 28542
</TABLE>
Past performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
+with dividends.
The performance graph does not reflect charges imposed by the Variable Accounts.
176
<PAGE> 179
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<S> <C> <C>
SHORT-TERM CORPORATE NOTES - 21.2%
AUTOMOTIVE - 1.5%
$ 130,000 Ford Motor Credit Co., 5.65%, 1/31/96.................................. $ 129,388
----------
BANKING - 1.1%
100,000 Norwest Financial, Inc., 5.62%, 1/22/96................................ 99,672
----------
INSURANCE - 3.3%
300,000 Prudential Funding Corp., 5.81%, 1/9/96................................ 299,613
----------
MACHINERY/ENGINEERING - 2.2%
200,000 Deere (John) Capital Corp., 5.73%, 1/9/96.............................. 199,745
----------
MISCELLANEOUS FINANCIAL SERVICES - 8.7%
380,000 Beneficial Corp., 5.77%, 1/16/96....................................... 379,086
410,000 Household Finance Corp., 5.75%, 1/10/96................................ 409,411
----------
788,497
----------
TECHNOLOGY - 4.4%
400,000 IBM Credit Corp., 5.73%, 1/3/96........................................ 399,873
----------
Total Short-Term Corporate Notes (amortized cost-$1,916,788)........... $1,916,788
----------
SHARES
--------
COMMON STOCKS - 81.6%
AEROSPACE/DEFENSE - 5.4%
3,380 AlliedSignal, Inc...................................................... $ 160,550
9,000 Coltec Industries, Inc................................................. 104,625
2,447 McDonnell Douglas Corp. ............................................... 225,124
----------
490,299
----------
BANKING - 6.2%
4,656 Citicorp............................................................... 313,116
1,800 First Interstate Bancorp............................................... 245,700
----------
558,816
----------
CHEMICALS - 4.9%
2,000 du Pont (E.I.) de Nemours & Co. ....................................... 139,750
3,198 Hercules, Inc.......................................................... 180,287
982 Monsanto Co............................................................ 120,295
----------
440,332
----------
CONGLOMERATES - 1.7%
2,156 General Electric Co. .................................................. 155,232
----------
CONSUMER PRODUCTS - 4.6%
1,922 Avon Products, Inc..................................................... 144,871
3,370 Hasbro, Inc. .......................................................... 104,470
5,475 Mattel, Inc............................................................ 168,356
----------
417,697
----------
</TABLE>
177
<PAGE> 180
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONTAINERS - 2.1%
4,298 Temple-Inland, Inc..................................................... $ 189,649
----------
DRUGS & MEDICAL PRODUCTS - 4.3%
4,021 Becton, Dickinson & Co. ............................................... 301,575
874 Warner-Lambert Co...................................................... 84,887
----------
386,462
----------
ELECTRONICS - 1.9%
4,038 Arrow Electronics, Inc.*............................................... 174,139
----------
ENERGY - 1.9%
2,996 Triton Energy Corp.*................................................... 171,896
----------
HEALTH & HOSPITALS - 3.8%
3,500 Columbia / HCA Healthcare Corp. ....................................... 177,625
8,000 Tenet Healthcare Corp.*................................................ 166,000
----------
343,625
----------
INSURANCE - 18.4%
6,500 Ace Ltd. .............................................................. 258,375
3,248 AFLAC, Inc. ........................................................... 140,882
2,262 American International Group, Inc. .................................... 209,235
6,726 EXEL Ltd............................................................... 410,286
4,579 Progressive Corp. (Ohio)............................................... 223,799
10,000 Prudential Reinsurance Holdings, Inc. ................................. 233,750
874 Transamerica Corp...................................................... 63,693
10 Transport Holdings, Inc.*.............................................. 407
2,000 Travelers, Inc. ....................................................... 125,750
----------
1,666,177
----------
MANUFACTURING - 4.2%
8,000 Shaw Industries, Inc................................................... 118,000
7,000 Varity Corp.*.......................................................... 259,875
----------
377,875
----------
METALS & MINING - .7%
2,145 Freeport McMoRan Copper & Gold (Class B)............................... 60,328
----------
MISCELLANEOUS FINANCIAL SERVICES - 7.7%
3,245 American Express Co.................................................... 134,262
5,912 Countrywide Credit Industries, Inc..................................... 128,586
5,155 Federal Home Loan Mortgage Corp........................................ 430,442
----------
693,290
----------
PAPER PRODUCTS - 1.4%
3,100 Champion International Corp. .......................................... 130,200
----------
</TABLE>
178
<PAGE> 181
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RAILROADS - 1.9%
2,100 Norfolk Southern Corp.................................................. $ 166,688
----------
RETAIL - 5.0%
7,388 May Department Stores Co............................................... 312,143
3,000 Penney (J.C.) Co., Inc................................................. 142,875
----------
455,018
----------
TECHNOLOGY - 1.9%
3,046 Intel Corp. ........................................................... 172,860
----------
TELECOMMUNICATION - 1.8%
4,000 Sprint Corp. .......................................................... 159,500
----------
TRANSPORTATION - 1.8%
3,600 CSX Corp. ............................................................. 164,250
----------
Total Common Stocks (cost-$5,850,568).................................. $7,374,333
----------
Total Investments (A) (cost-$7,767,356)....................... 102.8% $9,291,121
Other Liabilities in Excess of Other Assets................... (2.8) (255,139)
----- ----------
Total Net Assets.............................................. 100.0% $9,035,982
===== =========
</TABLE>
- ---------------
* Non-income producing security.
(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $1,637,034, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $113,269 and net unrealized appreciation for Federal income tax
purpose is $1,523,765. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.
See accompanying notes to financial statements.
179
<PAGE> 182
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (cost -- $7,767,356)....................................... $9,291,121
Cash............................................................................. 858
Receivable from fund shares sold................................................. 1,533
Dividends receivable............................................................. 7,702
Receivable from Adviser.......................................................... 38
Other assets..................................................................... 125
----------
Total Assets................................................................... 9,301,377
----------
LIABILITIES
Payable for investments purchased................................................ 250,000
Other payables and accrued expenses.............................................. 15,395
----------
Total Liabilities.............................................................. 265,395
----------
NET ASSETS
Par value ($.01 per share)....................................................... 3,607
Paid-in-surplus.................................................................. 7,172,859
Accumulated undistributed net investment income.................................. 111,781
Accumulated undistributed net realized gain on investments....................... 223,970
Net unrealized appreciation on investments....................................... 1,523,765
----------
Total Net Assets............................................................... $9,035,982
==========
Fund shares outstanding.......................................................... 360,689
----------
Net asset value per share........................................................ $ 25.05
==========
</TABLE>
See accompanying notes to financial statements.
180
<PAGE> 183
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends...................................................................... $ 93,124
Interest....................................................................... 64,858
----------
Total investment income..................................................... 157,982
----------
OPERATING EXPENSES
Investment advisory fee (note 2a).............................................. 38,504
Custodian fees................................................................. 14,481
Auditing, consulting and tax return preparation fees........................... 10,044
Transfer and dividend disbursing agent fees.................................... 9,103
Legal fees..................................................................... 2,714
Reports and notices to shareholders............................................ 1,692
Miscellaneous.................................................................. 4,408
----------
Total operating expenses.................................................... 80,946
Less: Investment advisory fee waived (note 2a).............................. (34,745)
----------
Net operating expenses................................................. 46,201
----------
Net investment income.................................................. 111,781
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................. 233,302
Net change in unrealized appreciation (depreciation) on investments.............. 1,628,793
----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments......................................................... 1,862,095
----------
Net increase in net assets resulting from operations................... $1,973,876
==========
</TABLE>
See accompanying notes to financial statements.
181
<PAGE> 184
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
OPERATIONS
Net investment income.................................... $ 111,781 $ 20,888
Net realized gain (loss) on investments.................. 233,302 (9,332)
Net change in unrealized appreciation (depreciation) on
investments............................................ 1,628,793 (105,028)
---------- ----------
Net increase (decrease) in net assets resulting from
operations........................................ 1,973,876 (93,472)
---------- ----------
DIVIDENDS TO SHAREHOLDERS
Net investment income.................................... (20,888) --
---------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................. 3,630,236 677,749
Net value of securities received (note 1)................ -- 3,764,598
Reinvestment of dividends................................ 20,888 --
Cost of shares redeemed.................................. (849,386) (67,619)
---------- ----------
Net increase in net assets from fund share
transactions...................................... 2,801,738 4,374,728
---------- ----------
Total increase in net assets................... 4,754,726 4,281,256
NET ASSETS
Beginning of period...................................... 4,281,256 0
---------- ----------
End of period (including undistributed net investment
income of $111,781 and $20,888, respectively).......... $ 9,035,982 $ 4,281,256
========== ==========
SHARES ISSUED AND REDEEMED
Issued................................................... 161,702 37,272
Issued in exchange for securities (note 1)............... -- 202,725
Issued in reinvestment of dividends...................... 1,074 --
Redeemed................................................. (38,368) (3,716)
---------- ----------
Net increase........................................ 124,408 236,281
========== ==========
</TABLE>
- ---------------
(1) Commencement of operations.
See accompanying notes to financial statements.
182
<PAGE> 185
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Equity Portfolio (the
"Portfolio"), one of the Trust's seven portfolios had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Equity Portfolio
(formerly known as Quest for Value Accumulation Trust Equity Portfolio),
distributed cash and securities with an aggregate market value of $3,764,598 in
exchange for 202,725 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:
(A) VALUATION OF INVESTMENTS
Investment securities, other than debt securities, listed on a national
exchange or traded in the over-the-counter National Market System are valued
each business day at the last reported sale price; if there are no such reported
sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Investment debt securities (other than
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Trustees. Investments are valued by the pricing
service using methods which include current market quotations from a major
market maker in the securities and trader-reviewed "matrix" prices. Short-term
debt securities having a remaining maturity of more than sixty days are valued
on a "marked-to-market" basis, that is, at prices based upon market quotations
for securities of similar type, yield, quality and maturity. Short-term debt
securities having a remaining maturity of sixty days or less are valued at
amortized cost, which approximates market value. Any securities or other assets
for which market quotations are not readily available are valued at their fair
value as determined in good faith by the Board of Trustees. The ability of
issuers of debt instruments to meet their obligations may be affected by
economic developments in a specific industry or region.
(B) FEDERAL INCOME TAXES
It is the Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.
(C) SECURITY TRANSACTIONS AND OTHER INCOME
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Dividend income is recorded on
the ex-dividend date and interest income is accrued as earned. Discounts or
premiums on debt securities purchased are accreted or amortized to interest
income over the lives of the respective securities.
(D) DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.
183
<PAGE> 186
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.
(E) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular portfolio are borne by
that portfolio. Other expenses are allocated to each portfolio based on its net
assets in relation to the total net assets of all the applicable portfolios of
the Trust or another reasonable basis.
(F) USE OF ESTIMATES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(a) The investment advisory fee is accrued daily and payable monthly to the
Adviser, and is computed as a percentage of the Portfolio's net assets as of the
close of business each day at the annual rate of .60%.
The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.72% of average daily net assets on an annual basis through at least December
31, 1995.
(b) Total brokerage commissions paid by the Portfolio for the year ended
December 31, 1995, amounted to $6,942, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $3,800.
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term securities were $3,641,204 and $1,633,047,
respectively.
(4) CAPITAL LOSS CARRYFORWARD
For the fiscal year ended December 31, 1995, the Portfolio will utilize
$9,332 of net capital loss carryforwards.
184
<PAGE> 187
QUEST FOR VALUE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 18.12 $ 18.57
Income from investment operations:
Net investment income.................................... 0.31 0.09
Net realized and unrealized gain (loss) on investments... 6.71 (0.54)
---------- ----------
Total from investment operations....................... 7.02 (0.45)
---------- ----------
Dividends to shareholders:
Dividends to shareholders from net investment income..... (0.09) --
---------- ----------
Net asset value, end of period........................... $ 25.05 $ 18.12
========== ==========
Total return(2).......................................... 38.9% (2.4%)
========== ==========
Net assets, end of period................................ $ 9,035,982 $ 4,281,256
---------- ----------
Ratio of net operating expenses to average net
assets(5).............................................. 0.72%(4) 0.72%(3)
---------- ----------
Ratio of net investment income to average net
assets(5).............................................. 1.74%(4) 1.80%(3)
---------- ----------
Portfolio turnover....................................... 31% 6%
---------- ----------
</TABLE>
- ---------------
(1) Commencement of operations.
(2) Assumes reinvestment of all dividends and distributions.
(3) Annualized.
(4) Average net assets for the year ended December 31, 1995 were $6,417,381.
(5) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 1.26%
and 2.09% and the ratio of net investment income to average net assets would
have been 1.20% and 0.43%, respectively
185
<PAGE> 188
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- EQUITY PORTFOLIO
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Equity Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust, hereafter referred
to as the "Portfolio") at December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year ended December 31, 1995 and for the period September 16,
1994 (commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian and broker, provide a reasonable basis for the
opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
186
<PAGE> 189
SMALL CAP PORTFOLIO
The Small Cap Portfolio, which as its name implies invests primarily in the
common stocks of smaller companies, had a total return of 15.2% in 1995, below
the total return of 28.5% with dividends included for the Russell 2000 Index, a
widely followed benchmark which includes smaller capitalization stocks. The
Portfolio's performance was 25th among the 28 small company growth funds in
Lipper's Variable Insurance Products Performance Analysis Service Report. In the
1995 second half, the Portfolio provided a total return of 8.8%, compared with
12.3% for the Russell 2000.
The Portfolio underperformed the index, in large part, because it did not
own many technology or financial service company stocks, two of the small cap
market's strongest sectors in 1995. Conversely, the Portfolio was overweighted
in real estate investment trusts (REITs). Many quality REITs appear to be
significantly undervalued. However, with their defensive investment
characteristics, they did not perform well during 1995 in a rising market.
For the five years ended December 31, 1995, the Portfolio provided an
average annual total return of 19.7%*, compared with the 21.0% average annual
return for the Russell 2000 Index. The Portfolio's five-year performance was
sixth among seven funds in the Lipper small company growth fund category. From
its inception on August 1, 1988 through December 31, 1995, the Portfolio
provided an average annual total return of 14.2%*, exceeding the 12.6% annual
total return for the Russell Index. Returns for the Portfolio take into account
expenses incurred by the Portfolio, but not any of the charges imposed by the
Variable Accounts.
Technology issues are only part of the small cap universe, and an expensive
and volatile part at that. The rest of the small cap market carries valuations
that are, in many cases, quite reasonable. We are conservative investors in
small cap stocks, seeking to control volatility and generate superior returns by
purchasing quality businesses that are mispriced by the market. The Portfolio
owns a diverse group of companies distinguished by their excellent business and
financial characteristics, including high cash flow and strong competitive
positions. An example is Oak Industries, Inc., the Portfolio's largest equity
position. Oak Industries is the dominant supplier of coaxial cable connectors to
the cable television industry and is benefiting from systems upgrading
throughout the industry. The telecommunications bill before the Congress, if
passed in its current form, should further boost Oak's business by promoting
increased competition in the delivery of telecommunications services to the
home. Moreover, international revenues account for approximately 40% of the
sales of Oak's major subsidiary, and these revenues are increasing at a rate of
about 40% a year as Oak capitalizes on the rapid growth of cable TV overseas.
Oak Industries earns a high return on capital and has increased its gross
margins from 18.7% in 1989 to 40.1% in 1995. We believe the stock is
significantly undervalued at 11 times reported earnings.
We remain disciplined and confident in our approach and continue to perform
the rigorous, in-depth analysis to identify quality businesses, such as Oak
Industries, where the value of the franchise is underpriced in the market. Our
goal is to provide above-average returns with below-average risk over time as
the market recognizes the merits of the undervalued stocks we own.
As of December 31, 1995, the Portfolio's net assets were allocated 85% to
common stocks and securities convertible into common stocks, 14% to cash and
cash equivalents, and 1% to assets in excess of liabilities. The Portfolio owned
the common stocks of 74 companies. Major industry positions were in the
manufacturing, electronics, energy, real estate and insurance sectors. The
Portfolio's five largest equity holdings were Oak Industries, Inc., with its
core business of manufacturing coaxial cable connectors for the cable television
industry; BancTec, Inc., which provides electronic systems and software for
processing financial documents and transactions; Westpoint Stevens, Inc., a
leading manufacturer of home textiles, including sheets and other bedding
products; Crane Co., which manufactures aerospace, fluid handling and controls
components and vending machines and distributes and manufactures housing-related
building products; and True North Communications, Inc., an advertising agency
holding company owning Foote, Cone & Belding Communications, Inc., one of the
largest advertising agencies in North America.
- ---------------
* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the Old
Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of the Small Cap Portfolio immediately after the transaction were
$139,812,573 in the Old Trust and $8,129,274 in the Present Trust. For the
periods prior to September 16, 1994, the performance reflects the performance of
the corresponding Small Cap Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST SMALL CAP PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON RUSSELL 2000 INDEX+
<TABLE>
<CAPTION>
Measurement Period Small Cap Russell 2000
(Fiscal Year Covered) Portfolio Index
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10190 9936
12/31/89 12060 11549
12/31/90 10883 9295
12/31/91 16120 13575
12/31/92 19584 16076
12/31/93 23405 19127
12/31/94 23170 18778
12/31/95 26698 24121
</TABLE>
Past performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
+with dividends.
The performance graph does not reflect charges imposed by the Variable Accounts.
187
<PAGE> 190
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----------
<S> <C> <C>
SHORT-TERM CORPORATE NOTES - 13.9%
BANKING - 3.9%
$ 625,000 Norwest Financial, Inc., 5.62%, 1/23/96............................... $ 622,853
-----------
CONGLOMERATES - 1.6%
150,000 General Electric Capital Corp., 5.76%, 1/8/96......................... 149,832
100,000 General Electric Capital Services, Inc., 5.76%, 1/8/96................ 99,888
-----------
249,720
-----------
INSURANCE - 1.2%
200,000 Prudential Funding Corp., 5.75%, 1/17/96.............................. 199,489
-----------
MACHINERY - 2.8%
Deere (John) Capital Corp.,
300,000 5.63%, 1/17/96........................................................ 299,249
150,000 5.73%, 1/4/96......................................................... 149,929
-----------
449,178
-----------
MISCELLANEOUS FINANCIAL SERVICES - 4.4%
Beneficial Corp.,
500,000 5.70%, 1/5/96......................................................... 499,683
100,000 5.76%, 1/8/96......................................................... 99,888
100,000 Household Finance Corp., 5.67%, 1/23/96............................... 99,654
-----------
699,225
-----------
Total Short-Term Corporate Notes (amortized cost-$2,220,465).......... $ 2,220,465
-----------
CORPORATE NOTES - .1%
AUTOMOTIVE - .0%
$ 2,148 Collins Industries, Inc., 8.75%, 1/11/00.............................. $ 2,005
-----------
ENERGY - .1%
15,125 Global Marine, Inc., 12.75%, 12/15/99................................. 16,713
-----------
Total Corporate Notes (cost - $18,363)................................ $ 18,718
-----------
CONVERTIBLE CORPORATE BONDS - .3%
REAL ESTATE - .3%
Security Capital Realty, Inc., 12.00%, 6/30/14(A)(B) (cost -
$ 51,487 $46,860).............................................................. $ 51,487
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
- ---------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCK - .6%
RETAIL - .1%
2,200 Family Bargain Corp. $.95 Conv. Pfd................................... $ 12,925
TRANSPORTATION - .5%
825 Interpool, Inc., 5.75%, Conv. Pfd..................................... 77,550
-----------
Total Convertible Preferred Stock (cost-$81,675)...................... $ 90,475
-----------
</TABLE>
188
<PAGE> 191
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS - 83.9%
ADVERTISING - 6.2%
20,000 Katz Media Group, Inc.*............................................... $ 352,500
6,000 Omnicom Group, Inc.................................................... 223,500
22,864 True North Communications, Inc. ...................................... 422,984
-----------
998,984
-----------
AUTOMOTIVE - 1.1%
4,400 Collins Industries, Inc.*............................................. 7,150
12,000 Masland Corp. ........................................................ 168,000
-----------
175,150
-----------
BANKING - .8%
6,800 First Financial Caribbean Corp........................................ 127,500
-----------
BUILDING & CONSTRUCTION - 3.1%
9,739 D.R. Horton, Inc. .................................................... 114,433
3,000 Insituform Technologies (Class A)*.................................... 34,875
16,500 Martin Marietta Materials, Inc. ...................................... 340,313
-----------
489,621
-----------
CHEMICALS - 1.3%
6,500 OM Group, Inc......................................................... 215,312
-----------
COMPUTER SERVICES - 3.5%
25,867 BancTec, Inc.*........................................................ 478,539
3,394 Globalink, Inc.*...................................................... 22,061
2,800 Keane, Inc.*.......................................................... 61,950
-----------
562,550
-----------
CONGLOMERATES - 1.8%
12,100 Ralcorp Holdings, Inc.*............................................... 293,425
-----------
DRUGS & MEDICAL PRODUCTS - 2.8%
5,000 Dentsply International, Inc. ......................................... 200,000
5,000 Spacelabs, Inc........................................................ 143,750
4,600 Sybron International Corp.*........................................... 109,250
-----------
453,000
-----------
ELECTRICAL EQUIPMENT - 8.6%
17,200 EG & G, Inc........................................................... 417,100
11,800 Marshall Industries*.................................................. 379,075
30,920 Oak Industries, Inc. ................................................. 579,750
-----------
1,375,925
-----------
</TABLE>
189
<PAGE> 192
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY - 8.2%
7,948 Aquila Gas Pipeline Corp. ............................................ $ 102,330
12,600 Belden & Blake Corp.*................................................. 220,500
15,500 Global Natural Resources, Inc.*....................................... 162,750
13,000 Noble Drilling Corp.*................................................. 117,000
11,200 Petroleum Heat & Power Company, Inc. (Class A)........................ 91,000
10,100 St. Mary Land & Exploration Co........................................ 141,400
25,942 Sithe Energies, Inc.*................................................. 155,652
8,000 Tesoro Petroleum Corp.*............................................... 69,000
2,000 Triton Energy Corp.*.................................................. 114,750
6,900 UGI Corp. ............................................................ 143,175
-----------
1,317,557
-----------
ENTERTAINMENT - .4%
6,000 Hollywood Park, Inc................................................... 60,375
15,983 Spectravision, Inc. (Class B)*........................................ 2,997
-----------
63,372
-----------
FOOD SERVICES - 1.1%
7,000 IHOP Corp.*........................................................... 182,000
-----------
HEALTH & HOSPITALS - 3.4%
1,700 Community Health Services, Inc.*...................................... 60,562
20,200 Magellan Health Services, Inc.*....................................... 484,800
-----------
545,362
-----------
HOUSEHOLD PRODUCTS - .2%
3,200 Crown Crafts, Inc..................................................... 36,800
-----------
INSURANCE - 6.7%
4,100 Ace, LTD. ............................................................ 162,975
15,000 Capsure Holdings Corp.*............................................... 264,375
12,000 E.W. Blanch Holdings, Inc. ........................................... 280,500
9,453 Guaranty National Corp................................................ 145,340
7,000 Penn-America Group, Inc.*............................................. 99,750
5,400 Prudential Reinsurance Holdings, Inc. ................................ 126,225
-----------
1,079,165
-----------
MANUFACTURING - 12.1%
3,800 Alltrista Corp.*...................................................... 68,400
13,000 Baldwin Technology Co. (Class A)...................................... 65,813
5,700 Briggs & Stratton Corp................................................ 247,237
9,000 Carlisle Companies, Inc............................................... 363,375
11,800 Crane Co. ............................................................ 435,125
12,700 Exabyte Corp.*........................................................ 185,737
</TABLE>
190
<PAGE> 193
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING (CONTINUED)
12,000 Harmon Industries, Inc. .............................................. $ 189,000
6,048 North American Watch Co............................................... 116,424
9,400 Singer Co. N.V........................................................ 262,025
-----------
1,933,136
-----------
PAPER PRODUCTS - 3.3%
44,800 Repap Enterprises, Inc.*.............................................. 198,800
22,800 Shorewood Packaging Corp.*............................................ 324,900
-----------
523,700
-----------
PRINTING & PUBLISHING - 2.3%
8,300 International Imaging Materials, Inc.*................................ 209,575
8,900 Nu-Kote Holdings, Inc. (Class A)*..................................... 151,300
-----------
360,875
-----------
REAL ESTATE - 6.8%
13,291 Cousins Properties, Inc. ............................................. 269,143
6,161 Post Properties, Inc.................................................. 196,382
17,500 Security Capital Industrial Trust, Inc................................ 306,250
12,752 Security Capital Pacific Trust........................................ 251,852
66 Security Capital Realty, Inc. (A)..................................... 58,212
-----------
1,081,839
-----------
RETAIL - .3%
3,500 Maxim Group, Inc.*.................................................... 47,250
-----------
SECURITY/INVESTIGATION - .1%
10,801 Automated Security (Holdings) PLC ADS*................................ 8,101
-----------
TECHNOLOGY - .3%
1,500 Unitrode Corp......................................................... 42,375
-----------
TELECOMMUNICATION - 1.0%
7,000 ECI Telecom, Ltd. .................................................... 159,688
-----------
TEXTILES/APPAREL - 4.4%
11,000 Dyersburg Corp........................................................ 55,000
3,426 Fab Industries, Inc. ................................................. 109,204
6,400 Mohawk Industries, Inc.*.............................................. 100,000
22,000 Westpoint Stevens, Inc. (Class A)*.................................... 441,375
-----------
705,579
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - 1.1%
12,900 Morningstar Group, Inc.*.............................................. 103,200
6,000 Sylvan Foods Holdings, Inc.*.......................................... 71,250
-----------
174,450
-----------
</TABLE>
191
<PAGE> 194
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION - 1.7%
8,300 Interpool, Inc. *..................................................... $ 148,363
8,500 MTL, Inc*............................................................. 119,000
-----------
267,363
-----------
OTHER - 1.3%
8,250 McGrath RentCorp...................................................... 156,750
6,470 Olympic Steel, Inc.*.................................................. 56,612
-----------
213,362
-----------
Total Common Stocks (cost - $12,333,334).............................. $13,433,441
-----------
CONTRACTS
PURCHASED PUT OPTIONS - .0%
Triton Energy Corp., expiring August '96 @ $50 (premium
20 paid - $5,511)........................................................ $ 4,125
-----------
Total Investments(C) (cost - $14,706,208)................... 98.8% $15,818,711
Other Assets in Excess of Other Liabilities................. 1.2 185,681
----- -----------
Total Net Assets............................................ 100.0% $16,004,392
===== ==========
</TABLE>
- ---------------
* Non-income producing security.
(A) Restricted securities (the Portfolio will not bear any costs, including
those involved in registration under the Securities Act of 1933, in
connection with the disposition of these securities):
<TABLE>
<CAPTION>
DATE OF PAR UNIT UNIT VALUATION AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST DECEMBER 31, 1995
- ---------------------------------------------------- ----------- ------- ------ ---- --------------------
<S> <C> <C> <C> <C> <C>
Security Capital Realty, Inc.
12.00%, 6/30/14................................... 9/16/94.. $51,487 -- $ 91 $100
Security Capital Realty, Inc.
Common Stock...................................... 9/16/94 -- 66 $949 $882
</TABLE>
(B) Security Capital at its discretion may defer interest payments.
(C) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $1,745,435, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $632,932, and net unrealized appreciation for Federal income tax
purposes is $1,112,503. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.
See accompanying notes to financial statements.
192
<PAGE> 195
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $14,706,208)...................................... $15,818,711
Cash............................................................................ 2,921
Receivable from investments sold................................................ 158,499
Receivable from fund shares sold................................................ 24,462
Dividends receivable............................................................ 18,425
Interest receivable............................................................. 3,421
Other assets.................................................................... 169
-----------
Total Assets.................................................................. 16,026,608
-----------
LIABILITIES
Payable for fund shares redeemed................................................ 200
Investment advisory fee payable................................................. 1,050
Other payables and accrued expenses............................................. 20,966
-----------
Total Liabilities............................................................. 22,216
-----------
NET ASSETS
Par value ($.01 per share)...................................................... 8,037
Paid-in-surplus................................................................. 14,215,173
Accumulated undistributed net investment income................................. 211,870
Accumulated undistributed net realized gain on investments...................... 456,809
Net unrealized appreciation on investments...................................... 1,112,503
-----------
Total Net Assets.............................................................. $16,004,392
===========
Fund shares outstanding......................................................... 803,674
-----------
Net asset value per share....................................................... $ 19.91
===========
</TABLE>
See accompanying notes to financial statements.
193
<PAGE> 196
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends...................................................................... $ 143,632
Interest....................................................................... 157,866
----------
Total investment income..................................................... 301,498
----------
OPERATING EXPENSES
Investment advisory fee (note 2a).............................................. 72,770
Custodian fees................................................................. 15,454
Auditing, consulting and tax return preparation fees........................... 10,095
Transfer and dividend disbursing agent fees.................................... 9,197
Legal fees..................................................................... 3,156
Reports and notices to shareholders............................................ 2,392
Miscellaneous.................................................................. 6,639
----------
Total operating expenses.................................................... 119,703
Less: Investment advisory fee waived (note 2a).............................. (30,075)
----------
Net operating expenses................................................. 89,628
----------
Net investment income.................................................. 211,870
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................. 456,809
Net change in unrealized appreciation (depreciation) on investments.............. 1,189,804
----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments......................................................... 1,646,613
----------
Net increase in net assets resulting from operations................... $1,858,483
==========
</TABLE>
See accompanying notes to financial statements.
194
<PAGE> 197
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
OPERATIONS
Net investment income...................................... $ 211,870 $ 29,623
Net realized gain on investments........................... 456,809 26,352
Net change in unrealized appreciation (depreciation) on
investments.............................................. 1,189,804 (77,301)
----------- ----------
Net increase (decrease) in net assets resulting from
operations.......................................... 1,858,483 (21,326)
----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income...................................... (29,623) --
Net realized gains......................................... (26,352) --
----------- ----------
Total dividends and distributions to shareholders..... (55,975) --
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................... 7,801,061 1,287,020
Net value of securities received (note 1).................. -- 8,129,274
Reinvestment of dividends and distributions................ 55,975 --
Cost of shares redeemed.................................... (2,865,595) (184,525)
----------- ----------
Net increase in net assets from fund share
transactions........................................ 4,991,441 9,231,769
----------- ----------
Total increase in net assets..................... 6,793,949 9,210,443
NET ASSETS
Beginning of period........................................ 9,210,443 0
----------- ----------
End of period (including undistributed net investment
income of $211,870 and $29,623, respectively)............ $16,004,392 $ 9,210,443
=========== ==========
SHARES ISSUED AND REDEEMED
Issued..................................................... 427,444 75,859
Issued in exchange for securities (note 1)................. -- 464,795
Issued in reinvestment of dividends and distributions...... 3,289 --
Redeemed................................................... (156,903) (10,810)
----------- ----------
Net increase.......................................... 273,830 529,844
=========== ==========
</TABLE>
- ---------------
(1) Commencement of operations.
See accompanying notes to financial statements.
195
<PAGE> 198
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Small Cap Portfolio (the
"Portfolio"), one of the Trust's seven portfolios, had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Small Cap Portfolio
(formerly known as Quest for Value Accumulation Trust Small Cap Portfolio),
distributed cash and securities with an aggregate market value of $8,129,274 in
exchange for 464,795 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:
(A) VALUATION OF INVESTMENTS
Investment securities, other than debt securities, listed on a national
exchange or traded in the over-the-counter National Market System are valued
each business day at the last reported sale price; if there are no such reported
sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Investment debt securities (other than
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Trustees. Investments are valued by the pricing
service using methods which include current market quotations from a major
market maker in the securities and trader-reviewed "matrix" prices. Short-term
debt securities having a remaining maturity of more than sixty days are valued
on a "marked-to-market" basis, that is, at prices based upon market quotations
for securities of similar type, yield, quality and maturity. Short-term debt
securities having a remaining maturity of sixty days or less are valued at
amortized cost, which approximates market value. Any securities or other assets
for which market quotations are not readily available are valued at their fair
value as determined in good faith by the Board of Trustees. The ability of
issuers of debt instruments to meet their obligations may be affected by
economic developments in a specific industry or region.
(B) FEDERAL INCOME TAXES
It is the Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.
(C) SECURITY TRANSACTIONS AND OTHER INCOME
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Dividend income is recorded on
the ex-dividend date and interest income is accrued as earned. Discounts or
premiums on debt securities purchased are accreted or amortized to interest
income over the lives of the respective securities.
(D) DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.
The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
196
<PAGE> 199
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
accordance with Federal income tax regulations, which may differ from generally
accepted accounting principles. These "book-tax" differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts
based on their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of
paid-in-surplus or tax return of capital. At December 31, 1995, the Portfolio
did not have any permanent book-tax differences.
(E) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular portfolio are borne by
that portfolio. Other expenses are allocated to each portfolio based on its net
assets in relation to the total net assets of all the applicable portfolios of
the Trust or another reasonable basis.
(F) USE OF ESTIMATES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
(G) PURCHASED PUT OPTION ACCOUNTING POLICY
When a Portfolio purchases a put option, it pays a premium and an amount
equal to the premium is recorded as an investment. The option is subsequently
marked-to-market to reflect its current market value. The Portfolio, as
purchaser of an option, has control over whether the option is exercised. If an
option expires unexercised, the Portfolio realizes a loss in the amount of the
premium paid. If an option is exercised, the premium paid is an adjustment to
the proceeds from the sale in determining whether the Portfolio has realized a
gain or loss. The difference between the premium paid and the amount received on
effecting a closing sale transaction is the realized gain or loss. The
Portfolio, as a purchaser of an option, bears the risk of the potential
inability of the counterparties to meet the terms of their contracts.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(a) The investment advisory fee is accrued daily and payable monthly to the
Adviser, and is computed as a percentage of the Portfolio's net assets as of the
close of business each day at the annual rate of .60%.
The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.74% of average daily net assets on an annual basis through at least December
31, 1995.
(b) Total brokerage commissions paid by the Portfolio for the year ended
December 31, 1995, amounted to $35,395, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $12,805.
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term securities were $10,968,368 and $6,786,171,
respectively.
(4) CAPITAL LOSS DEFERRAL
Capital losses incurred after October 31, 1995 are deemed to arise on the
first business day of the following fiscal year. Accordingly, the Portfolio
incurred and elected to defer $87,890 in net capital losses.
197
<PAGE> 200
QUEST FOR VALUE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 17.38 $ 17.49
Income from investment operations:
Net investment income.................................... 0.26 0.06
Net realized and unrealized gain (loss) on investments... 2.37 (0.17)
----------- ----------
Total from investment operations....................... 2.63 (0.11)
----------- ----------
Dividends and distributions to shareholders:
Dividends to shareholders from net investment income..... (0.05) --
Distributions to shareholders from net realized capital
gains.................................................. (0.05) --
----------- ----------
Total dividends and distributions...................... (0.10) --
----------- ----------
Net asset value, end of period........................... $ 19.91 $ 17.38
=========== ==========
Total return(2).......................................... 15.2% (.6%)
=========== ==========
Net assets, end of period................................ $16,004,392 $ 9,210,443
----------- ----------
Ratio of net operating expenses to average net
assets(5).............................................. 0.74%(4) 0.74%(3)
----------- ----------
Ratio of net investment income to average net
assets(5).............................................. 1.75%(4) 1.22%(3)
----------- ----------
Portfolio turnover....................................... 69% 32%
----------- ----------
</TABLE>
- ---------------
(1) Commencement of operations.
(2) Assumes reinvestment of all dividends and distributions.
(3) Annualized.
(4) Average net assets for the year ended December 31, 1995 were $12,128,267.
(5) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 0.99%
and 1.64% and the ratio of net investment income to average net assets would
have been 1.50% and 0.32%, respectively.
198
<PAGE> 201
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- SMALL CAP PORTFOLIO
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Small Cap Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust hereafter referred to
as the "Portfolio") at December 31, 1995, the results of its operations for the
year then ended, and the changes in its net assets and the financial highlights
for the year ended December 31, 1995 and for the period September 16, 1994
(commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
199
<PAGE> 202
MANAGED PORTFOLIO
The Managed Portfolio, which invests in stocks, bonds and cash equivalents,
has consistently ranked among the top funds in its category. It continued its
outstanding performance in 1995, providing a total return of 45.6%, well above
the total return of 37.6% with dividends included for the Standard & Poor's 500
Index (S&P 500), an unmanaged index of 500 of the largest corporations weighted
by market capitalization. This performance ranked second best among the 68
flexible portfolio funds in Lipper's Variable Insurance Products Performance
Analysis Service Report. In the 1995 second half, the Portfolio provided a total
return of 12.2%, compared with 14.4% for the S&P 500.
The Portfolio has been a consistently excellent performer over time. This
fact was recognized by Morningstar, Inc., when it named Richard J. Glasebrook
II, manager of the Portfolio, as its 1995 Variable Fund Manager of the Year.
Morningstar is a well-known commentator on variable annuity performance results.
For the five years ended December 31, 1995, the Portfolio's average annual total
return of 23.3%* exceeded by a wide margin the 16.6% return of the S&P 500. This
performance was second best among the 54 flexible portfolio funds in the Lipper
universe. From inception on August 1, 1988 through December 31, 1995, the
Portfolio provided an average annual total return of 19.7%*, compared with 15.2%
for the S&P 500. Returns for the Portfolio take into account expenses incurred
by the Portfolio, but not other charges imposed by the Variable Accounts.
The Portfolio has achieved its superior long-term performance by investing
in quality undervalued stocks and holding them for price appreciation. Its three
largest holdings, McDonnell Douglas Corp., Federal Home Loan Mortgage Corp.
(Freddie Mac) and Citicorp, all reached new highs in the 1995 fourth quarter.
However, the market price of its fourth largest holding, Intel Corp., declined
in the quarter due to fears that a poorer business environment might lead to
reduced demand for the company's semiconductor products. Intel is the
Portfolio's only significant investment in the technology sector.
Although the Portfolio can buy bonds and money market securities, in
practice it invests primarily in common stocks based on the premise that stocks
provide the best returns over time. As of December 31, 1995, 84% of the
Portfolio's net assets were invested in common stocks and securities convertible
into common stocks, 2% in Treasury notes and bonds, and 14% in cash and cash
equivalents.
In the 1995 second half, the Portfolio increased its existing positions or
added new positions in the common stocks of such companies as Becton, Dickinson
& Co., Champion International Corp., Reebok International Ltd., First Interstate
Bancorp, Mattel, Inc. and Tenneco, Inc. Reduced or eliminated during the second
half were investments in such stocks as Mellon Bank Corp., Shaw Industries, Inc.
and Northrop Grumman Corp.
The Portfolio owned the common stocks of 34 companies as of December 31,
1995. Major industry positions were in the banking, financial services,
aerospace and defense, consumer products, and insurance sectors. The Portfolio's
five largest equity holdings were McDonnell Douglas Corp., the nation's largest
manufacturer of military aircraft and an important competitor in commercial
aircraft; Federal Home Loan Mortgage Corp. (Freddie Mac), the second largest
insurer of home mortgages in the United States; Citicorp, a leading bank; Intel
Corp., a major producer of semiconductors; and Freeport McMoRan Copper & Gold
(class B), which produces copper and gold at a mine in the Indonesian region of
Irian Jaya.
- ---------------
* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the Old
Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of the Managed Portfolio immediately after the transaction were
$682,601,380 in the Old Trust and $51,354,102 in the Present Trust. For the
periods prior to September 16, 1994, the performance reflects the performance of
the corresponding Managed Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST MANAGED PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON S&P 500 INDEX+
<TABLE>
<CAPTION>
Measurement Period Managed S&P 500 In-
(Fiscal Year Covered) Portfolio dex
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10440 10383
12/31/89 13839 13673
12/31/90 13336 13249
12/31/91 19458 17285
12/31/92 23098 18602
12/31/93 25498 20475
12/31/94 26165 20746
12/31/95 38083 28542
</TABLE>
Past performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
+with dividends.
The performance graph does not reflect charges imposed by the Variable Accounts.
200
<PAGE> 203
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<S> <C> <C>
SHORT-TERM CORPORATE NOTES - 14.3%
AUTOMOTIVE - 2.5%
Ford Motor Credit Co.,
$ 150,000 5.74%, 1/8/96........................................................ $ 149,833
2,310,000 5.76%, 1/10/96....................................................... 2,306,674
-----------
2,456,507
-----------
BANKING - .2%
180,000 Norwest Financial, Inc., 5.62%, 1/22/96.............................. 179,410
-----------
INSURANCE - 6.3%
Prudential Funding Corp.,
3,130,000 5.80%, 1/17/96....................................................... 3,121,932
3,150,000 5.81%, 1/9/96........................................................ 3,145,933
-----------
6,267,865
-----------
MACHINERY/ENGINEERING - .4%
420,000 Deere (John) Capital Corp., 5.55%, 1/17/96........................... 418,964
-----------
MISCELLANEOUS FINANCIAL SERVICES - 4.6%
1,370,000 Beneficial Corp., 5.80%, 1/23/96..................................... 1,365,144
3,000,000 Household Finance Corp., 5.75%, 1/10/96.............................. 2,995,687
130,000 Merrill Lynch & Co., Inc., 5.75%, 1/3/96............................. 129,958
-----------
4,490,789
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS - .3%
330,000 Philip Morris Companies, Inc., 5.92%, 1/3/96......................... 329,891
-----------
Total Short-Term Corporate Notes (amortized cost - $14,143,426)...... $14,143,426
-----------
U.S. TREASURY NOTES AND BONDS - 1.7%
$ 700,000 6.25%, 8/15/23....................................................... $ 720,237
630,000 7.875%, 4/15/98...................................................... 665,242
297,500 7.875%, 8/15/01...................................................... 332,269
-----------
Total U.S. Treasury Notes and Bonds (cost - $1,520,076).............. $ 1,717,748
-----------
CONVERTIBLE CORPORATE BONDS - .7%
REAL ESTATE - .7%
$ 632,708 Security Capital Realty, Inc., 12.00%, 6/30/14(A)(B)
(cost - $575,845).................................................... $ 632,708
-----------
SHARES
- ----------
CONVERTIBLE PREFERRED STOCKS - .0%
RETAIL - .0%
2,478 Venture Stores, Inc., $3.25 Conv. Pfd. (cost - $102,527)............. $ 24,780
-----------
</TABLE>
201
<PAGE> 204
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
COMMON STOCKS - 83.2%
AEROSPACE/DEFENSE - 7.6%
20,000 Lockheed Martin Corp. ............................................... $ 1,580,000
63,000 McDonnell Douglas Corp............................................... 5,796,000
2,200 Northrop Grumman Corp. .............................................. 140,800
-----------
7,516,800
-----------
AUTOMOTIVE - 1.7%
31,300 General Motors Corp.................................................. 1,654,987
-----------
BANKING - 16.1%
74,100 Citicorp............................................................. 4,983,225
7,400 First Empire State Corp. ............................................ 1,613,200
15,000 First Interstate Bancorp............................................. 2,047,500
60,000 Mellon Bank Corp..................................................... 3,225,000
19,000 Wells Fargo & Co. ................................................... 4,104,000
-----------
15,972,925
-----------
CHEMICALS - 3.5%
40,000 Hercules, Inc. ...................................................... 2,255,000
10,000 Monsanto Co. ........................................................ 1,225,000
-----------
3,480,000
-----------
CONSUMER PRODUCTS - 7.0%
16,350 Avon Products, Inc. ................................................. 1,232,381
100,000 Mattel, Inc. ........................................................ 3,075,000
93,000 Reebok International Ltd. ........................................... 2,627,250
-----------
6,934,631
-----------
DRUGS & MEDICAL PRODUCTS - 3.0%
40,000 Becton, Dickinson & Co. ............................................. 3,000,000
-----------
ENERGY - 5.6%
20,000 MAPCO, Inc. ......................................................... 1,092,500
60,000 Tenneco, Inc......................................................... 2,977,500
25,700 Triton Energy Corp.*................................................. 1,474,537
-----------
5,544,537
-----------
INSURANCE - 6.4%
51,400 EXEL Ltd. ........................................................... 3,135,400
15,400 Transamerica Corp. .................................................. 1,122,275
180 Transport Holdings, Inc.*............................................ 7,335
33,000 Travelers, Inc. ..................................................... 2,074,875
-----------
6,339,885
-----------
MANUFACTURING - 1.6%
110,000 Shaw Industries, Inc. ............................................... 1,622,500
-----------
</TABLE>
202
<PAGE> 205
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
METALS & MINING - 4.6%
149,132 Freeport McMoRan Copper & Gold (Class B)............................. $ 4,194,338
9,389 Freeport McMoRan, Inc................................................ 347,393
-----------
4,541,731
-----------
MISCELLANEOUS FINANCIAL SERVICES - 13.8%
74,000 American Express Co.................................................. 3,061,750
90,000 Countrywide Credit Industries, Inc................................... 1,957,500
61,100 Federal Home Loan Mortgage Corp...................................... 5,101,850
29,100 Federal National Mortgage Association................................ 3,612,038
-----------
13,733,138
-----------
PAPER PRODUCTS - 3.6%
84,000 Champion International Corp.......................................... 3,528,000
-----------
REAL ESTATE - .7%
811 Security Capital Realty, Inc.(A)..................................... 715,302
-----------
TECHNOLOGY - 6.0%
75,000 Intel Corp........................................................... 4,256,250
60,000 Unitrode Corp.*...................................................... 1,695,000
-----------
5,951,250
-----------
TELECOMMUNICATIONS - 2.0%
50,000 Sprint Corp.......................................................... 1,993,750
-----------
Total Common Stocks (cost - $61,380,303)............................. $82,529,436
-----------
Total Investments(C) (cost - $77,722,177).................. 99.9% $99,048,098
Other ASSETS in Excess of Other Liabilities................ 0.1 140,049
----- -----------
Total Net Assets........................................... 100.0% $99,188,147
===== ===========
</TABLE>
- ---------------
* Non-income producing security.
(A) Restricted Securities (the Portfolio will not bear any costs, including
those involved in registration under the Securities Act of 1933, in
connection with the disposition of these securities):
<TABLE>
<CAPTION>
UNIT VALUATION
DATE OF PAR UNIT AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST DECEMBER 31, 1995
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc.
12.00%, 6/30/14................................ 9/16/94 $632,708 -- $ 91 $ 100
Security Capital Realty, Inc.
Common Stock................................... 9/16/94 -- 811 $949 $ 882
</TABLE>
(B) Security Capital at its discretion may defer interest payments.
(C) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $22,384,125, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $1,058,204 and net unrealized appreciation for Federal income tax
purpose is $21,325,921. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.
203
<PAGE> 206
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost-$77,722,177)........................................ $99,048,098
Receivable from fund shares sold................................................ 42,863
Dividends receivable............................................................ 89,385
Interest receivable............................................................. 74,121
Receivable from Adviser......................................................... 1,313
Other assets.................................................................... 385
-----------
Total Assets.................................................................. 99,256,165
-----------
LIABILITIES
Payable for fund shares redeemed................................................ 964
Due to custodian................................................................ 24,356
Other payables and accrued expenses............................................. 42,698
-----------
Total Liabilities............................................................. 68,018
-----------
NET ASSETS
Par value ($.01 per share)...................................................... 32,907
Paid-in-surplus................................................................. 75,572,376
Accumulated undistributed net investment income................................. 1,378,069
Accumulated undistributed net realized gain on investments...................... 878,874
Net unrealized appreciation on investments...................................... 21,325,921
-----------
Total Net Assets.............................................................. $99,188,147
===========
Fund shares outstanding......................................................... 3,290,749
-----------
Net asset value per share....................................................... $ 30.14
===========
</TABLE>
See accompanying notes to financial statements.
204
<PAGE> 207
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends..................................................................... $1,270,963
Interest...................................................................... 600,998
-----------
Total investment income.................................................... 1,871,961
-----------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................. 447,678
Trustee's fees and expenses................................................... 17,443
Custodian fees................................................................ 16,004
Auditing, consulting and tax return preparation fees.......................... 14,421
Transfer and dividend disbursing agent fees................................... 10,207
Reports and notices to shareholders........................................... 9,949
Legal fees.................................................................... 8,106
Miscellaneous................................................................. 25,120
-----------
Total operating expenses................................................... 548,928
Less: Investment advisory fee waived (note 2a)............................. (55,036)
-----------
Net operating expenses................................................ 493,892
-----------
Net investment income................................................. 1,378,069
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments................................................ 1,023,914
Net change in unrealized appreciation (depreciation) on investments............. 23,901,028
-----------
Net realized gain and change in unrealized appreciation (depreciation)
on investments........................................................ 24,924,942
-----------
Net increase in net assets resulting from operations.................. $26,303,011
===========
</TABLE>
See accompanying notes to financial statements.
205
<PAGE> 208
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ----------------------
<S> <C> <C>
OPERATIONS
Net investment income................................... $ 1,378,069 $ 360,801
Net realized gain (loss) on investments................. 1,023,914 (145,040)
Net change in unrealized appreciation (depreciation) on
investments........................................... 23,901,028 (2,575,107)
----------- -----------
Net increase (decrease) in net assets resulting
from operations.................................. 26,303,011 (2,359,346)
----------- -----------
DIVIDENDS TO SHAREHOLDERS
Net investment income................................... (360,801) --
----------- -----------
FUND SHARE TRANSACTIONS
Net proceeds from sales................................. 27,913,098 6,980,338
Net value of securities received (note 1)............... -- 51,354,102
Reinvestment of dividends............................... 360,801 --
Cost of shares redeemed................................. (9,971,333) (1,031,723)
----------- -----------
Net increase in net assets from fund share
transactions..................................... 18,302,566 57,302,717
----------- -----------
Total increase in net assets.................. 44,244,776 54,943,371
NET ASSETS
Beginning of period..................................... 54,943,371 0
----------- -----------
End of period (including undistributed net investment
income of $1,378,069 and $360,801, respectively)...... $99,188,147 $54,943,371
=========== ===========
SHARES ISSUED AND REDEEMED
Issued.................................................. 1,016,970 330,594
Issued in exchange for securities (note 1).............. -- 2,355,693
Issued in reinvestment of dividends..................... 15,866 --
Redeemed................................................ (379,452) (48,922)
----------- -----------
Net increase....................................... 653,384 2,637,365
=========== ===========
</TABLE>
- ---------------
(1) Commencement of operations.
See accompanying notes to financial statements.
206
<PAGE> 209
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value: the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Managed Portfolio (the
"Portfolio"), one of the Trust's seven portfolios, had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Managed Portfolio
(formerly known as Quest for Value Accumulation Trust Managed Portfolio),
distributed cash and securities with an aggregate market value of $51,354,102 in
exchange for 2,355,693 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:
(A) VALUATION OF INVESTMENTS
Investment securities, other than debt securities, listed on a national
exchange or traded in the over-the-counter National Market System are valued
each business day at the last reported sale price; if there are no such reported
sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Investment debt securities (other than
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Trustees. Investments are valued by the pricing
service using methods which include current market quotations from a major
market maker in the securities and trader-reviewed "matrix" prices. Short-term
debt securities having a remaining maturity of more than sixty days are valued
on a "marked-to-market" basis, that is, at prices based upon market quotations
for securities of similar type, yield, quality and maturity. Short-term debt
securities having a remaining maturity of sixty days or less are valued at
amortized cost, which approximates market value. Any securities or other assets
for which market quotations are not readily available are valued at their fair
value as determined in good faith by the Board of Trustees. The ability of
issuers of debt instruments to meet their obligations may be affected by
economic developments in a specific industry or region.
(B) FEDERAL INCOME TAXES
It is the Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.
(C) SECURITY TRANSACTIONS AND OTHER INCOME
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Dividend income is recorded on
the ex-dividend date and interest income is accrued as earned. Discounts or
premiums on debt securities purchased are accreted or amortized to interest
income over the lives of the respective securities.
(D) DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders from net investment income and
net realized capital gains, if any, are declared and paid at least annually.
207
<PAGE> 210
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.
(E) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular portfolio are borne by
that portfolio. Other expenses are allocated to each portfolio based on its net
assets in relation to the total net assets of all the applicable portfolios of
the Trust or another reasonable basis.
(F) USE OF ESTIMATES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(a) The investment advisory fee is accrued daily and payable monthly to the
Adviser, and is computed as a percentage of the Portfolio's net assets as of the
close of business each day at the annual rate of .60%.
The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
.66% of average daily net assets on an annual basis through at least December
31, 1995.
(b) Total brokerage commissions paid by the Portfolio for the year ended
December 31, 1995, amounted to $65,136, of which Oppenheimer & Co., Inc., an
affiliate of the Adviser, received $26,544.
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term securities were $30,484,410 and $15,035,906
respectively.
(4) CAPITAL LOSS CARRYFORWARD
For the fiscal year ended December 31, 1995, the Portfolio will utilize
$145,040 of net capital loss carryforwards.
208
<PAGE> 211
QUEST FOR VALUE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
SEPTEMBER 16, 1994
YEAR ENDED (1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period....................... $ 20.83 $ 21.80
Income from investment operations:
Net investment income...................................... 0.42 0.14
Net realized and unrealized gain (loss) on investments..... 9.02 (1.11)
----------- -----------
Total from investment operations......................... 9.44 (0.97)
----------- -----------
Dividends to shareholders:
Dividends to shareholders from net investment income....... (0.13) --
----------- -----------
Net asset value, end of period............................. $ 30.14 $ 20.83
=========== ===========
Total return(2)............................................ 45.6% (4.4%)
=========== ===========
Net assets, end of period.................................. $99,188,147 $54,943,371
----------- -----------
Ratio of net operating expenses to average net assets(5)... 0.66%(4) 0.66%(3)
----------- -----------
Ratio of net investment income to average net assets(5).... 1.85%(4) 2.34%(3)
----------- -----------
Portfolio turnover......................................... 22% 8%
----------- -----------
</TABLE>
- ---------------
(1) Commencement of operations.
(2) Assumes reinvestment of all dividends and distributions.
(3) Annualized.
(4) Average net assets for the year ended December 31, 1995 were $74,612,954.
(5) During the periods presented above, the Adviser waived a portion of its
fees. If such waivers had not been in effect, the ratio of net operating
expenses to average net assets would have been 0.74% and 0.96% and the ratio
of net investment income to average net assets would have been 1.77% and
2.04%, respectively.
209
<PAGE> 212
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- MANAGED PORTFOLIO
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Managed Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust, hereafter referred
to as the "Portfolio") at December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year ended December 31, 1995 and for the period September 16,
1994 (commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
210
<PAGE> 213
BOND PORTFOLIO
The Bond Portfolio offers a convenient way to invest in a diversified group
of quality debt securities; corporate and government. It provided a total return
of 15.2% in 1995, compared with a total return of 18.5% for the Lehman Brothers
Aggregate Bond Index, a widely followed benchmark. In the five years ended
December 31, 1995, the Portfolio produced an average annual total return of
8.1%*, compared with 9.5% for the index. Since August 1, 1988, the Portfolio has
generated an average annual total return of 7.9%*. These returns take into
account expenses incurred by the Portfolio. Other charges are imposed by the
Variable Accounts.
In managing the Portfolio, we seek to provide a high level of current
income consistent with moderate risk of capital and maintenance of liquidity.
The Portfolio offers the potential for higher returns than the U.S. Government
Income Portfolio and is intended for investors willing to accept greater price
volatility through investments in longer term securities in return for greater
profit potential.
As of December 31, 1995, the Portfolio was invested 43% in Treasury notes
and bonds, 31% in corporate notes and bonds, 24% in U.S. Government agency
securities, and 2% in assets in excess of liabilities. Because corporates offer
virtually no yield advantage over governments at this time, the Portfolio is
currently invested relatively heavily in government securities. The effective
average maturity of the Portfolio was 9.7 years as of December 31, 1995.
- ---------------
* Based on results of the Quest for Value Accumulation Trust and its
predecessor. On September 16, 1994, an investment company which had commenced
operations on August 1, 1988, then called Quest for Value Accumulation Trust
(the "Old Trust"), was effectively divided into two investment funds -- the
Old Trust and the present Quest for Value Accumulation Trust (the "Present
Trust") -- at which time the Present Trust commenced operations. The total net
assets of $3,756,161 of the Bond Portfolio immediately after the transaction
were entirely in the Present Trust. For the periods prior to September 16,
1994, the performance reflects the performance of the corresponding Bond
Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
QUEST FOR VALUE ACCUMULATION TRUST BOND PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/95 AND TOTAL RETURN ON LEHMAN AGGREGATE BOND INDEX+
<TABLE>
<CAPTION>
Lehman Bros.
Measurement Period Bond Portfo- Aggregate
(Fiscal Year Covered) lio Bond Index
<S> <C> <C>
08/01/88 10000 10000
12/31/88 10000 10249
12/31/89 11022 11738
12/31/90 11910 12789
12/31/91 13747 14836
12/31/92 14623 15934
12/31/93 15850 17488
12/31/94 15243 16978
12/31/95 17564 20114
</TABLE>
Past performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
+with dividends.
The performance graph does not reflect charges imposed by the Variable Accounts.
211
<PAGE> 214
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------
<S> <C> <C>
U.S. TREASURY NOTES AND BONDS - 39.4%
$350,000 5.75%, 10/31/97...................................................... $ 353,392
150,000 5.75%, 8/15/03....................................................... 151,804
550,000 6.125%, 7/31/96...................................................... 552,662
175,000 7.25%, 11/30/96...................................................... 177,980
190,000 7.25%, 8/15/04....................................................... 211,286
175,000 10.375%, 11/15/12.................................................... 241,938
----------
Total U.S. Treasury Notes and Bonds (cost-$1,641,179)................ $1,689,062
----------
U.S. TREASURY SECURITY, STRIPPED INTEREST PAYMENT - 3.8%
$750,000 (zero coupon), due 5/15/20 (cost-$120,452)........................... $ 165,045
----------
U.S. GOVERNMENT AGENCY NOTES AND BONDS - 24.0%
$156,598 Federal Home Loan Mortgage Corp., 8.50%, 10/15/19.................... $ 159,680
Federal National Mortgage Association
225,804 7.00%, 1/1/10........................................................ 229,966
283,185 8.00%, 8/1/24........................................................ 293,272
14,009 9.00%, 8/1/02........................................................ 14,749
28,274 9.50%, 12/1/06....................................................... 29,758
90,381 9.50%, 12/1/19....................................................... 96,284
194,852 Government National Mortgage Association, 8.50%, 3/15/25............. 204,594
----------
Total U.S. Government Agency Notes and Bonds (cost-$996,587)......... $1,028,303
----------
CORPORATE NOTES - 31.4%
AUTOMOTIVE - 8.3%
$175,000 Chrysler Financial Corp., 8.42%, 2/1/99.............................. $ 187,182
150,000 General Motors Acceptance Corp., 8.25%, 2/24/04...................... 168,504
----------
355,686
----------
CONGLOMERATES - 5.2%
200,000 General Electric Capital Corp., 8.375%, 3/1/01....................... 221,828
----------
INSURANCE - 2.5%
100,000 St. Paul Companies, Inc., 9.375%, 6/15/97............................ 105,065
----------
MISCELLANEOUS FINANCIAL SERVICES - 10.7%
200,000 Associates Corp., N.A., 5.25%, 3/30/00............................... 196,368
100,000 BarclaysAmerican Corp., 7.875%, 8/15/98.............................. 105,482
150,000 Household Finance Corp., 6.875%, 3/1/03.............................. 155,989
----------
457,839
----------
</TABLE>
212
<PAGE> 215
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------
<S> <C> <C>
CORPORATE NOTES (CONTINUED)
RETAIL - 4.7%
$200,000 Sears Roebuck & Co., 8.55%, 8/1/96................................... $ 203,110
----------
Total Corporate Notes (cost-$1,272,402).............................. $1,343,528
----------
Total Investments (A) (cost-$4,030,620)..................... 98.6% $4,225,938
Other Assets in Excess of Other Liabilities................. 1.4 58,517
----- ----------
Total Net Assets............................................ 100.0% $4,284,455
===== =========
</TABLE>
- ---------------
(A) Aggregate gross unrealized appreciation for securities in which there is an
excess of value over tax cost is $195,318, aggregate gross unrealized
depreciation for securities in which there is an excess of tax cost over
value is $0, and net unrealized appreciation for Federal income tax purposes
is $195,318. Federal income tax basis of portfolio securities is
substantially the same as for financial reporting purposes.
See accompanying notes to financial statements.
213
<PAGE> 216
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost - $4,030,620)........................................ $4,225,938
Cash............................................................................. 8,680
Interest receivable.............................................................. 65,823
Other assets..................................................................... 76
----------
Total Assets................................................................... 4,300,517
----------
LIABILITIES
Payable for fund shares redeemed................................................. 16
Dividends payable................................................................ 1,593
Other payables and accrued expenses.............................................. 14,453
----------
Total Liabilities.............................................................. 16,062
----------
NET ASSETS
Par value ($.01 per share)....................................................... 4,287
Paid-in-surplus.................................................................. 4,009,340
Accumulated undistributed net realized gain on investments....................... 75,510
Net unrealized appreciation on investments....................................... 195,318
----------
Total Net Assets............................................................... $4,284,455
==========
Fund shares outstanding.......................................................... 428,741
----------
Net asset value per share........................................................ $ 9.99
==========
</TABLE>
See accompanying notes to financial statements.
214
<PAGE> 217
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $285,303
--------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................... 20,517
Custodian fees.................................................................. 17,505
Auditing, consulting and tax return preparation fees............................ 10,164
Transfer and dividend disbursing agent fees..................................... 9,068
Legal fees...................................................................... 2,429
Reports and notices to shareholders............................................. 668
Miscellaneous................................................................... 1,833
--------
Total operating expenses..................................................... 62,184
Less: Investment advisory fee waived and expenses reimbursed (note 2a)....... (21,209)
--------
Net operating expenses.................................................. 40,975
--------
Net investment income................................................... 244,328
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET
Net realized gain on investments.................................................. 79,769
Net change in unrealized appreciation (depreciation) on investments............... 269,489
--------
Net realized gain and change in unrealized appreciation (depreciation)
on
investments........................................................... 349,258
--------
Net increase in net assets resulting from operations.................... $593,586
========
</TABLE>
See accompanying notes to financial statements.
215
<PAGE> 218
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
OPERATIONS
Net investment income.................................... $ 244,328 $ 66,718
Net realized gain (loss) on investments.................. 79,769 (4,259)
Net change in unrealized appreciation (depreciation) on
investments............................................ 269,489 (74,170)
----------- ----------
Net increase (decrease) in net assets resulting from
operations........................................ 593,586 (11,711)
----------- ----------
DIVIDENDS TO SHAREHOLDERS
Net investment income.................................... (244,328) (66,718)
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales.................................. 1,574,585 84,253
Net value of securities received (note 1)................ -- 3,756,161
Reinvestment of dividends................................ 242,735 66,718
Cost of shares redeemed.................................. (1,537,477) (173,349)
----------- ----------
Net increase in net assets from fund share
transactions...................................... 279,843 3,733,783
----------- ----------
Total increase in net assets................... 629,101 3,655,354
NET ASSETS
Beginning of period...................................... 3,655,354 0
----------- ----------
End of period............................................ $ 4,284,455 $ 3,655,354
=========== ==========
SHARES ISSUED AND REDEEMED
Issued................................................... 165,081 8,985
Issued in exchange for securities (note 1)............... -- 399,756
Issued in reinvestment of dividends...................... 25,011 7,214
Redeemed................................................. (158,718) (18,588)
----------- ----------
Net increase........................................ 31,374 397,367
=========== ==========
</TABLE>
- ---------------
(1) Commencement of operations.
See accompanying notes to financial statements.
216
<PAGE> 219
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Quest for Value Accumulation Trust (the "Trust") was organized on May 12,
1994 as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust is authorized to issue an unlimited number of
seven classes of shares of beneficial interest at $.01 par value; the Equity
Portfolio, the Small Cap Portfolio, the Global Equity Portfolio, the Managed
Portfolio, the Bond Portfolio, the U. S. Government Income Portfolio and the
Money Market Portfolio. OpCap Advisors (formerly called Quest for Value
Advisors; the "Adviser"), a majority-owned (99%) subsidiary of Oppenheimer
Capital, serves as the Trust's investment adviser. The Bond Portfolio (the
"Portfolio"), one of the Trust's seven portfolios had no operations until
September 16, 1994, when the Enterprise Accumulation Trust Bond Portfolio
(formerly known as Quest for Value Accumulation Trust Bond Portfolio),
distributed cash and securities with an aggregate market value of $3,756,161 in
exchange for 399,756 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements.
(A) VALUATION OF INVESTMENTS
Investment debt securities (other than short-term obligations) are valued
each business day by an independent pricing service approved by the Board of
Trustees. Investments are valued by the pricing service using methods which
include current market quotations from a major market maker in the securities
and trader-reviewed "matrix" prices. Short-term debt securities having a
remaining maturity of more than sixty days are valued on a "marked-to-market"
basis, that is, at prices based upon market quotations for securities of similar
type, yield, quality and maturity. Short-term debt securities having a remaining
maturity of sixty days or less are valued at amortized cost, which approximates
market value. Any securities or other assets for which market quotations are not
readily available are valued at their fair value as determined in good faith by
the Board of Trustees. The ability of issuers of debt instruments to meet their
obligations may be affected by economic developments in a specific industry or
region.
(B) FEDERAL INCOME TAXES
It is the Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.
(C) SECURITY TRANSACTIONS AND OTHER INCOME
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Interest income is accrued as
earned. Discounts or premiums on debt securities purchased are accreted or
amortized to interest income over the lives of the respective securities.
(D) DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income are declared daily and paid monthly.
Distributions from net realized capital gains, if any, are declared and paid at
least annually.
The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts
217
<PAGE> 220
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
based on their Federal tax-basis treatment: temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as distributions of paid-
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.
(E) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular portfolio are borne by
that portfolio. Other expenses are allocated to each portfolio based on its net
assets in relation to the total net assets of all the applicable portfolios or
another reasonable basis.
(F) USE OF ESTIMATES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(a) The investment advisory fee is payable monthly to the Adviser, and is
computed as a percentage of the Portfolio's net assets as of the close of
business each day at the annual rate of .50%.
The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
1.00% of average daily net assets on an annual basis through at least December
31, 1995.
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1995, purchases and sales of investment
securities, other than short-term were $5,824,578 and $5,281,293, respectively.
(4) CAPITAL LOSS CARRYFORWARD
For the fiscal year ended December 31, 1995, the Portfolio will utilize
$4,259 of net capital loss carryforward.
218
<PAGE> 221
QUEST FOR VALUE ACCUMULATION TRUST
BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 9.20 $ 9.40
Income from investment operations:
Net investment income.................................... 0.58 0.17
Net realized and unrealized gain (loss) on investments... 0.79 (0.20)
---------- ----------
Total from investment operations....................... 1.37 (0.03)
---------- ----------
Dividends to shareholders:
Dividends to shareholders from net investment income..... (0.58) (0.17)
---------- ----------
Net asset value, end of period........................... $ 9.99 $ 9.20
========== ==========
Total return(2).......................................... 15.2% (0.3%)
========== ==========
Net assets, end of period................................ $ 4,284,455 $ 3,655,354
---------- ----------
Ratio of net operating expenses to average net
assets(5).............................................. 1.00%(4) 1.00%(3)
---------- ----------
Ratio of net investment income to average net
assets(5).............................................. 5.95%(4) 6.26%(3)
---------- ----------
Portfolio turnover....................................... 134% 7%
---------- ----------
</TABLE>
- ---------------
(1) Commencement of operations.
(2) Assumes reinvestment of all dividends and distributions.
(3) Annualized.
(4) Average net assets for the year ended December 31, 1995 were $4,103,422.
(5) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 1.52%
and 2.05% and the ratio of net investment income to average net assets would
have been 5.43% and 5.21%, respectively.
219
<PAGE> 222
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- BOND PORTFOLIO
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Bond Portfolio (one of the
portfolios constituting Quest for Value Accumulation Trust, hereafter referred
to as the "Portfolio") at December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for the year ended December 31, 1995 and for the period September 16,
1994 (commencement of operations) through December 31, 1994, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
220
<PAGE> 223
MONEY MARKET PORTFOLIO
The Money Market Portfolio seeks maximum current income consistent with
stability of principal and liquidity. The seven-day compounded yield of the
Portfolio was 4.89% as of December 31, 1995. The average dollar-weighted
portfolio maturity was 16 days.
We seek to manage the Portfolio conservatively, recognizing that
shareholders of money market funds view liquidity and safety of principal as
their most important objectives. Rather than subjecting the Money Market
Portfolio to additional risk to achieve a higher return, we maintain a rigorous
approach to analyzing and investing in quality credits. These include the
short-term securities of leading financial institutions and industrial companies
in the United States and abroad, as well as marketable obligations of the United
States Government, its agencies and instrumentalities. As of December 31, 1995,
72% of the Portfolio's assets were allocated to short-term corporate notes, with
the remaining assets invested in U.S. Government agency securities. We continued
to avoid all investments in derivative securities.
Investments in the Money Market Portfolio are not insured or guaranteed by
the U.S. Government. There is no assurance that the Portfolio will maintain a
stable net asset value.
221
<PAGE> 224
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ----------
<S> <C> <C>
U.S. GOVERNMENT AGENCY NOTES - 27.4%
$ 90,000 Federal Farm Credit Bank, 5.62%, 1/24/96........................... $ 89,677
Federal Home Loan Bank
165,000 5.60%, 1/5/96...................................................... 164,897
165,000 5.60%, 1/8/96...................................................... 164,820
140,000 5.62%, 1/8/96...................................................... 139,848
160,000 5.63%, 1/3/96...................................................... 159,950
Federal Home Loan Mortgage Corp.
150,000 5.58%, 1/5/96...................................................... 149,907
160,000 5.63%, 1/2/96...................................................... 159,975
165,000 Federal National Mortgage Association, 5.60%, 1/5/96............... 164,897
----------
Total U.S. Government Agency Notes (amortized cost - $1,193,971)... $1,193,971
----------
SHORT-TERM CORPORATE NOTES - 72.4%
AGRICULTURE - 3.9%
$ 170,000 Cargill, Inc., 5.62%, 2/6/96....................................... $ 169,045
----------
AUTOMOTIVE - 7.1%
150,000 Ford Motor Credit Co., 5.72%, 1/4/96............................... 149,928
160,000 General Motors Acceptance Corp., 5.85%, 1/29/96.................... 159,272
----------
309,200
----------
BANKING - 11.5%
230,000 Abby National North America, 5.60%, 1/8/96......................... 229,750
170,000 Commerzbank U.S. Finance, Inc., 5.73%, 1/12/96..................... 169,702
100,000 Svenska Handelsbanken, Inc., 5.75%, 1/16/96........................ 99,760
----------
499,212
----------
CONGLOMERATES - 3.0%
130,000 General Electric Capital Corp., 5.76%, 1/22/96..................... 129,563
----------
ENERGY - 7.5%
170,000 Chevron Oil Finance Co., 5.65%, 1/4/96............................. 169,920
160,000 Texaco, Inc., 5.60%, 1/31/96....................................... 159,253
----------
329,173
----------
INSURANCE - 3.4%
153,000 Prudential Funding Corp., 5.52%, 1/22/96........................... 152,507
----------
MACHINERY - 3.0%
130,000 Deere (John) Capital Corp., 5.60%, 2/2/96.......................... 129,353
----------
</TABLE>
222
<PAGE> 225
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------- ----------
<S> <C> <C>
SHORT-TERM CORPORATE NOTES (CONTINUED)
MISCELLANEOUS FINANCIAL SERVICES - 22.0%
$ 140,000 American Express Credit Corp., 5.70%, 1/19/96...................... $ 139,601
100,000 Beneficial Corp., 5.62%, 1/3/96.................................... 99,969
160,000 Hanson Finance (U.K.) PLC, 5.73%, 1/17/96.......................... 159,593
150,000 Household Finance Corp., 5.75%, 1/11/96............................ 149,760
150,000 Merrill Lynch & Co., Inc., 5.70%, 1/29/96.......................... 149,335
130,000 Student Loan Corp., 5.73%, 1/16/96................................. 129,690
130,000 Transamerica Finance Group, 5.71%, 1/2/96.......................... 129,979
----------
957,927
----------
TECHNOLOGY - 7.3%
160,000 Hewlett Packard Co., 5.63%, 1/16/96................................ 159,625
160,000 IBM Credit Corp., 5.70%, 1/12/96................................... 159,721
----------
319,346
----------
TELECOMMUNICATIONS - 3.7%
160,000 GTE Northwest, Inc., 5.81%, 1/10/96................................ 159,768
----------
Total Short-Term Corporate Notes (amortized cost - $3,155,094)..... $3,155,094
----------
Total Investments (A) (amortized cost - $4,349,065)........ 99.8% $4,349,065
Other Assets in Excess of Other Liabilities................ 0.2 7,019
----- ----------
Total Net Assets........................................... 100.0% $4,356,084
===== =========
</TABLE>
- ---------------
(A) Federal income tax basis of portfolio securities is the same for financial
reporting purposes.
See accompanying notes to financial statements.
223
<PAGE> 226
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (amortized cost - $4,349,065).............................. $4,349,065
Cash............................................................................. 25,688
Receivable from Adviser.......................................................... 30
Other assets..................................................................... 125
----------
Total Assets................................................................... 4,374,908
----------
LIABILITIES
Payable for fund shares redeemed................................................. 4,018
Dividends payable................................................................ 1,700
Other payables and accrued expenses.............................................. 13,106
----------
Total Liabilities.............................................................. 18,824
----------
NET ASSETS
Par value ($.01 per share)....................................................... 43,560
Paid-in-surplus.................................................................. 4,312,477
Net realized gain on investments................................................. 47
----------
Total Net Assets............................................................... $4,356,084
==========
Fund shares outstanding.......................................................... 4,356,037
----------
Net asset value per share........................................................ $ 1.00
==========
</TABLE>
See accompanying notes to financial statements.
224
<PAGE> 227
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................................ $244,777
--------
OPERATING EXPENSES
Investment advisory fee (note 2a)............................................... 16,477
Auditing, consulting and tax return preparation fees............................ 9,977
Transfer and dividend disbursing agent fees..................................... 9,067
Custodian fees.................................................................. 6,785
Legal fees...................................................................... 2,420
Reports and notices to shareholders............................................. 356
Miscellaneous................................................................... 2,044
--------
Total operating expenses..................................................... 47,126
Less: Investment advisory fee waived (note 2a)............................... (5,702)
--------
Net operating expenses.................................................. 41,424
--------
Net investment income................................................... 203,353
--------
REALIZED GAIN ON INVESTMENTS - NET
Net realized gain on investments.................................................. 47
--------
Net increase in net assets resulting from operations.................... $203,400
========
</TABLE>
See accompanying notes to financial statements.
225
<PAGE> 228
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ----------------------
<S> <C> <C>
OPERATIONS
Net investment income................................... $ 203,353 $ 42,375
Net realized gain on investments........................ 47 --
----------- ----------
Net increase in net assets resulting from
operations....................................... 203,400 42,375
----------- ----------
DIVIDENDS TO SHAREHOLDERS
Net investment income................................... (203,353) (42,375)
----------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales................................. 4,346,773 469,215
Net value of securities received (note 1)............... -- 3,407,191
Reinvestment of dividends............................... 201,653 42,375
Cost of shares redeemed................................. (3,711,915) (499,255)
----------- ----------
Net increase in net assets from fund share
transactions..................................... 836,511 3,419,526
----------- ----------
Total increase in net assets.................. 836,558 3,419,526
NET ASSETS
Beginning of period (note 1)............................ 3,519,526 100,000
----------- ----------
End of period........................................... $ 4,356,084 $3,519,526
=========== ==========
SHARES ISSUED AND REDEEMED
Issued.................................................. 4,346,773 469,215
Issued in exchange for securities (note 1).............. -- 3,407,191
Issued in reinvestment of dividends..................... 201,653 42,375
Redeemed................................................ (3,711,915) (499,255)
----------- ----------
Net increase....................................... 836,511 3,419,526
=========== ==========
</TABLE>
- ---------------
(1) Commencement of operations.
See accompanying notes to financial statements.
226
<PAGE> 229
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Quest for Value Accumulation Trust (the "Trust") was organized May 12, 1994
as a Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Trust is authorized to issue an unlimited number of seven classes
of shares of beneficial interest at $.01 par value; the Equity Portfolio, the
Small Cap Portfolio, the Global Equity Portfolio, the Managed Portfolio, the
Bond Portfolio, the U. S. Government Income Portfolio and the Money Market
Portfolio. OpCap Advisors (formerly called Quest for Value Advisors; the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. The Money Market Portfolio (the "Portfolio"),
one of the Trust's seven portfolios had no operations until September 7, 1994
other than the sale and issuance of 100,000 shares of the Portfolio to the
Adviser at an aggregate purchase price of $100,000 to provide the initial
capital of the Trust. On September 16, 1994, Enterprise Accumulation Trust Money
Market Portfolio (formerly known as Quest for Value Accumulation Trust Money
Market Portfolio), distributed cash and securities aggregating $3,407,191 in
exchange for 3,407,191 shares of the Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolio in the
preparation of its financial statements:
(A) VALUATION OF INVESTMENTS
Portfolio securities are valued at amortized cost, which approximates
market value.
(B) FEDERAL INCOME TAXES
It is the Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.
(C) SECURITY TRANSACTIONS AND OTHER INCOME
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold has
been determined on the basis of identified cost. Interest income is accrued as
earned. Discounts or premiums on debt securities purchased are accreted or
amortized to interest income over the lives of the respective securities.
(D) DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income are declared daily and paid monthly.
Distributions from net realized capital gains, if any, are declared and paid at
least annually.
The Portfolio records dividends and distributions to its shareholders on
the ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in accordance
with Federal income tax regulations, which may differ from generally accepted
accounting principles. These "book-tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal tax basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains, respectively. To the
extent distributions exceed current and
227
<PAGE> 230
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
accumulated earnings and profits for Federal income tax purposes, they are
reported as distributions of paid-
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
in-surplus or tax return of capital. At December 31, 1995, the Portfolio did not
have any permanent book-tax differences.
(E) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular portfolio are borne by
that portfolio. Other expenses are allocated to each portfolio based on its net
assets in relation to the total net assets of all the applicable portfolios or
another reasonable basis.
(F) USE OF ESTIMATES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(a) The investment advisory fee is payable monthly to the Adviser, and is
computed as a percentage of the Portfolio's net assets as of the close of
business each day at the annual rate of .40%.
The Adviser has agreed to waive that portion of the advisory fee and to
reimburse any necessary expenses to limit operating expenses of the Portfolio to
1.00% of average daily net assets on an annual basis through at least December
31, 1995.
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1995, purchases and sales/maturities of
investment securities, were $37,451,485 and $36,853,510, respectively.
228
<PAGE> 231
QUEST FOR VALUE ACCUMULATION TRUST
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 16, 1994(1)
DECEMBER 31, 1995 TO DECEMBER 31, 1994
----------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period..................... $ 1.00 $ 1.00
Income from investment operations:
Net investment income.................................... 0.05 0.01
Net realized gain on investments......................... 0.00(2) --
---------- ----------
Total from investment operations....................... 0.05 0.01
---------- ----------
Dividends to shareholders:
Dividends to shareholders from net investment income..... (0.05) (0.01)
---------- ----------
Net asset value, end of period........................... $ 1.00 $ 1.00
========== ==========
Total return(3).......................................... 5.1% 4.2%(4)
========== ==========
Net assets, end of period................................ $ 4,356,084 $ 3,519,526
---------- ----------
Ratio of net operating expenses to average net
assets(6).............................................. 1.00%(5) 1.00%(4)
---------- ----------
Ratio of net investment income to average net
assets(6).............................................. 4.94%(5) 4.13%(4)
---------- ----------
</TABLE>
- ---------------
(1) Commencement of operations.
(2) Less than $.005 per share.
(3) Assumes reinvestment of all dividends and distributions.
(4) Annualized.
(5) Average net assets for the year ended December 31, 1995 were $4,119,173.
(6) During the periods presented above, the Adviser waived a portion or all of
its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratio of net operating expenses to average net assets would have been 1.14%
and 2.03% and the ratio of net investment income to average net assets would
have been 4.80% and 3.10%, respectively.
229
<PAGE> 232
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF
QUEST FOR VALUE ACCUMULATION TRUST -- MONEY MARKET PORTFOLIO
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Money Market Portfolio (one of
the portfolios constituting Quest for Value Accumulation Trust, hereafter
referred to as the "Portfolio") at December 31, 1995, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for the year ended December 31, 1995 and for the period
September 16, 1994 (commencement of operations) through December 31, 1994, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1995 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
February 16, 1996
230
<PAGE> 233
[THIS PAGE INTENTIONALLY LEFT BLANK]
231
<PAGE> 234
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
<TABLE>
<S> <C>
DIRECTORS AND PRINCIPAL OFFICERS
Kenneth M. Levine Chairman, President and Director
Joel Davis Director
Michael J. Drabb Director
Alan J. Hartnick Director
Floyd L. Smith Director
Edward E. Hill Vice President-Compliance
David V. Weigel Treasurer
John P. Keller Controller
Frederick C. Tedeschi Secretary
INVESTMENT ADVISER
MONY Life Insurance Co. of America
1740 Broadway
New York, New York 10019
PRINCIPAL UNDERWRITER AND DISTRIBUTOR
MONY Securities Corp.
1740 Broadway
New York, New York 10019
CUSTODIAN
Chemical Bank
277 Park Avenue
New York, New York 10172
TRANSFER AGENT
The Mutual Life Insurance Co. of
New York
1740 Broadway
New York, New York 10019
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
1301 Avenue of the Americas
New York, New York 10019
</TABLE>
232
<PAGE> 235
ISSUED BY:
MONY LIFE INSURANCE COMPANY OF AMERICA
(An Arizona Stock Corporation)
(not licensed to solicit or transact
business in New York)
1740 Broadway, New York, NY 10019
or in New York,
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
1740 Broadway, New York, NY 10019
DISTRIBUTOR:
MONY SECURITIES CORP.
1740 Broadway, New York, NY 10019
(Member NASD, SIPC)
<PAGE> 236
MONY LOGO
The Mutual Life Insurance Company of New York
Administrative Offices
1740 Broadway, New York, NY 10019
ADDRESS CORRECTION REQUESTED
----------------------
BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 8048
NEW YORK, NEW YORK
----------------------
Form No. 13634SL (2/96)
