<PAGE> 1
MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
1996 ANNUAL REPORT
PRODUCTS:
MONYMASTER
MONYEQUITY MASTER
VALUEMASTER
MONYVESTOR
STRATEGIST
- --------------------------------------------------------------------------------
[LOGO]
- --------------------------------------------------------------------------------
<PAGE> 2
The historical returns for the Portfolios take into account expenses incurred by
the Portfolios, 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.
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 OCC 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, MONYEquity Master or ValueMaster performance and a current
MONYMaster, MONYEquity Master or ValueMaster prospectus which contains more
complete information of charges and expenses.
The information provided on the MONYVestor and Strategist are for those
contracts that are inforce. These products are no longer available to the
general public.
<PAGE> 3
MONY SERIES FUND, INC.
Dear Shareholder,
The macro environment for investors is essentially unchanged from 1996.
Slow growth, low inflation and stable interest rates are expected. There are no
major excesses, except perhaps stock market valuations, which remain in
historically high territory. There does not appear to be any compelling reason,
in the near term at least, for the Federal Reserve to raise rates, except to
reduce market speculation. A much stronger economy would change this neutral
outlook for Fed policy, but that is not expected now.
The primary potential problem area for the market is corporate earnings.
Earnings growth was good in 1996, and combined with lower interest rates, pushed
the market to new highs. In 1997, in a slow growth economy, with companies
having little pricing power, profits are at risk and could turn out to be the
major negative for the 1997 stock market.
Earnings aside, the overall environment must be considered benign to good,
whether it be world events, political developments or economic statistics.
Things may not be great or totally to everyone's liking, but compared with all
the crises faced over the past thirty years, the market today does not have to
deal with major external negatives. All this, of course, has not gone unnoticed
by investors. Sentiment has been very strong, money continues to pour into
mutual funds and expectations are very high, both for profits and the outlook
for stocks.
There is little room for disappointment at today's valuations. Everything
went right last year or was interpreted as going right. Growth was not too fast
and not too slow, and as a result, the market had two very strong driving
forces: lower rates and higher profits. It is unlikely that 1997 will witness
the same combination, something will almost certainly disappoint. Either growth
will be too fast, raising concerns about inflation and Fed tightening; or more
likely, slow enough to raise concerns about earnings growth.
Some disappointment would not be all bad. The expectation is for this year
to be one of consolidation. A flat year would be all right after the recent
strength. The past two, five and ten year periods have been exceptional and
should not be considered the norm. A flat year which included a ten to fifteen
percent correction would not be a surprise, and would be healthy in terms of
cooling some of the excessive expectations. A pause that let the fundamentals
catch up with prices would be good for the market's long term health.
A major decline of twenty percent or more is not anticipated. That is
usually caused by the Federal Reserve tightening credit and raising interest
rates to slow the economy. The usual economic excesses which would cause tighter
monetary policy are not currently present. The Fed could tighten to try to
contain the stock market, but that would probably require both a stronger
economy and a more speculative environment. It is more likely that the chairman
would try to talk the market down as he did recently before tightening monetary
policy.
Sincerely,
/s/ KENNETH M. LEVINE
---------------------------
Kenneth M. Levine
Chairman
1
<PAGE> 4
THE MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
VARIABLE ACCOUNT L
MONY America
Statements of Assets and Liabilities as of December 31, 1996................ 5
Statements of Operations as of December 31, 1996............................ 7
Statements of Changes in Net Assets......................................... 9
Notes to Financial Statements............................................... 12
Report of Independent Accountants........................................... 15
MONY
Statements of Assets and Liabilities as of December 31, 1996................ 16
Statements of Operations as of December 31, 1996............................ 18
Statements of Changes in Net Assets......................................... 20
Notes to Financial Statements............................................... 22
Report of Independent Accountants........................................... 25
VARIABLE ACCOUNT S
MONY America
Statements of Assets and Liabilities as of December 31, 1996................ 26
Statements of Operations as of December 31, 1996............................ 27
Statements of Changes in Net Assets......................................... 28
Notes to Financial Statements............................................... 29
Report of Independent Accountants........................................... 31
MONY
Statements of Assets and Liabilities as of December 31, 1996................ 32
Statements of Operations as of December 31, 1996............................ 33
Statements of Changes in Net Assets......................................... 34
Notes to Financial Statements............................................... 35
Report of Independent Accountants........................................... 37
VARIABLE ACCOUNT A
MONY America
Statements of Assets and Liabilities as of December 31, 1996................ 38
Statements of Operations as of December 31, 1996............................ 41
Statements of Changes in Net Assets......................................... 44
Notes to Financial Statements............................................... 48
Report of Independent Accountants........................................... 51
MONY
Statements of Assets and Liabilities as of December 31, 1996................ 52
Statements of Operations as of December 31, 1996............................ 55
Statements of Changes in Net Assets......................................... 58
Notes to Financial Statements............................................... 62
Report of Independent Accountants........................................... 65
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
MONY SERIES FUND, INC.
Equity Growth Portfolio (MONYMaster I, MONYVestor and Strategist)................ 66
Equity Income Portfolio (MONYMaster I, MONYVestor and Strategist)................ 67
Intermediate Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor
and Strategist)................................................................. 68
Long Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)..................................................................... 69
Diversified Portfolio (MONYMaster I, MONYVestor and Strategist).................. 70
Government Securities Portfolio (MONYEquity Master, MONYMaster II)............... 71
Money Market Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)..................................................................... 72
Equity Growth Portfolio of Investments (MONYMaster I, MONYVestor and
Strategist)..................................................................... 73
Equity Income Portfolio of Investments (MONYMaster I, MONYVestor and
Strategist)..................................................................... 75
Intermediate Term Bond Portfolio of Investments (MONYEquity Master, MONYMaster
I&II, MONYVestor and Strategist)................................................ 77
Long Term Bond Portfolio of Investments (MONYEquity Master, MONYMaster I&II,
MONYVestor and Strategist)...................................................... 78
Diversified Portfolio of Investments (MONYMaster I, MONYVestor and Strategist)... 79
Government Securities Portfolio of Investments (MONYEquity Master, MONYMaster
II)............................................................................. 81
Money Market Portfolio of Investments (MONYEquity Master, MONYMaster I&II,
MONYVestor and Strategist)...................................................... 82
Statements of Assets and Liabilities as of December 31, 1996..................... 84
Statements of Operations as of December 31, 1996................................. 85
Statements of Changes in Net Assets.............................................. 86
NOTES TO FINANCIAL STATEMENTS.................................................... 88
FINANCIAL HIGHLIGHTS............................................................. 91
REPORT OF INDEPENDENT ACCOUNTANTS................................................ 98
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio (MONYEquity Master, MONYMaster II).............................. 100
Small Cap Portfolio (MONYEquity Master, MONYMaster II)........................... 101
Managed Portfolio (MONYEquity Master, MONYMaster II)............................. 103
International Growth Portfolio (MONYEquity Master, MONYMaster II)................ 104
High Yield Bond Portfolio (MONYEquity Master, MONYMaster II)..................... 106
Equity Portfolio of Investments (MONYEquity Master, MONYMaster II)............... 108
Small Cap Portfolio of Investments (MONYEquity Master, MONYMaster II)............ 109
Managed Portfolio of Investments (MONYEquity Master, MONYMaster II).............. 111
International Growth Portfolio of Investments (MONYEquity Master, MONYMaster
II)............................................................................. 113
High Yield Bond Portfolio of Investments (MONYEquity Master, MONYMaster II)...... 116
Statements of Assets and Liabilities as of December 31, 1996..................... 119
Statements of Operations as of December 31, 1996................................. 120
Statements of Changes in Net Assets.............................................. 122
FINANCIAL HIGHLIGHTS............................................................. 124
NOTES TO FINANCIAL STATEMENTS.................................................... 129
REPORT OF INDEPENDENT ACCOUNTANTS................................................ 133
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
OCC ACCUMULATION TRUST
Equity Portfolio (ValueMaster)................................................... 136
Small Cap Portfolio (ValueMaster)................................................ 138
Managed Portfolio (ValueMaster).................................................. 140
Bond Portfolio (ValueMaster)..................................................... 142
Money Market Portfolio (ValueMaster)............................................. 143
Equity Portfolio Schedule of Investments (ValueMaster)........................... 144
Small Cap Portfolio Schedule of Investments (ValueMaster)........................ 145
Managed Portfolio Schedule of Investments (ValueMaster).......................... 147
Bond Portfolio Schedule of Investments (ValueMaster)............................. 148
Money Market Portfolio Schedule of Investments (ValueMaster)..................... 149
Statements of Assets and Liabilities as of December 31, 1996..................... 150
Statements of Operations as of December 31, 1996................................. 151
Statements of Changes in Net Assets.............................................. 152
NOTES TO FINANCIAL STATEMENTS.................................................... 153
FINANCIAL HIGHLIGHTS............................................................. 156
REPORT OF INDEPENDENT ACCOUNTANTS................................................ 157
</TABLE>
4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<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)....... $ 483,575 $ 480,536 $ 168,956 $ 87,402 $ 838,945 $ 85,289
======== ======== ======== ======== ========= ========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... $ 633,526 $ 666,450 $ 177,041 $ 95,253 $1,083,741 $ 85,289
Amount due from MONY America....... 5 5 0 0 0 0
Amount due from MONY Series Fund,
Inc. ............................ 9 9 0 0 26 0
---------- ---------- ---------- ---------- ---------- ----------
Total assets............. 633,540 666,464 177,041 95,253 1,083,767 85,289
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to MONY America......... 9 9 0 0 26 0
Amount due to MONY Series Fund,
Inc. ............................ 5 5 0 0 0 0
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities........ 14 14 0 0 26 0
---------- ---------- ---------- ---------- ---------- ----------
Net assets......................... $ 633,526 $ 666,450 $ 177,041 $ 95,253 $1,083,741 $ 85,289
======== ======== ======== ======== ========= ========
Net assets consist of:
Contractholders' net
payments.................... $ 530,611 $ 564,123 $ 211,304 $ 127,727 $1,079,623 $ 198,280
Cost of insurance withdrawals
(Note 3).................... (352,711) (451,201) (189,141) (142,302) (852,538) (186,478)
Undistributed net investment
income...................... 114,981 251,131 154,460 94,948 455,761 73,487
Accumulated net realized gain
(loss) on investments....... 190,694 116,483 (7,667) 7,029 156,099 0
Unrealized appreciation of
investments................. 149,951 185,914 8,085 7,851 244,796 0
---------- ---------- ---------- ---------- ---------- ----------
Net assets......................... $ 633,526 $ 666,450 $ 177,041 $ 95,253 $1,083,741 $ 85,289
======== ======== ======== ======== ========= ========
Number of units outstanding*....... 14,958 15,149 8,041 3,504 34,279 4,970
---------- ---------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding*..................... $ 42.35 $ 43.99 $ 22.02 $ 27.18 $ 31.62 $ 17.16
======== ======== ======== ======== ========= ========
</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, 1996
<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).................... $ 88,591 $592,645 $285,560 $4,349,240 $4,748,650 $2,362,738
=========== ========== =========== ========== ========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $ 0 $ 0 $ 0 $ 0 $5,129,744 $2,437,067
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 90,824 614,531 292,657 4,349,240 0 0
Amount due from Enterprise Accumulation Trust... 0 0 0 0 1,772 1,113
Amount due from MONY America.................... 33 123 85 8,194 2,031 583
Amount due from MONY Series Fund, Inc........... 10 0 26 113,916 0 0
------------ ---------- ---------- ---------- ---------- ----------
Total assets............................ 90,867 614,654 292,768 4,471,350 5,133,547 2,438,763
------------ ---------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 0 0 0 0 2,031 583
Amount due to MONY America...................... 10 0 26 113,916 1,772 1,113
Amount due to MONY Series Fund, Inc............. 33 123 85 8,194 0 0
------------ ---------- ---------- ---------- ---------- ----------
Total liabilities....................... 43 123 111 122,110 3,803 1,696
------------ ---------- ---------- ---------- ---------- ----------
Net assets...................................... $ 90,824 $614,531 $292,657 $4,349,240 $5,129,744 $2,437,067
=========== ========== =========== ========== ========== ==========
Net assets consist of:
Contractholders' net payments............... $106,061 $656,214 $317,161 $4,461,789 $5,366,348 $2,733,551
Cost of insurance withdrawals (Note 3)...... (18,139) (76,295) (36,104) (219,339) (887,308) (456,533)
Undistributed net investment income......... 1,010 10,765 3,464 106,790 71,362 45,386
Accumulated net realized gain (loss) on
investments............................... (341) 1,961 1,039 0 198,248 40,334
Unrealized appreciation of investments...... 2,233 21,886 7,097 0 381,094 74,329
------------ ---------- ---------- ---------- ---------- ----------
Net assets...................................... $ 90,824 $614,531 $292,657 $4,349,240 $5,129,744 $2,437,067
=========== ========== =========== ========== ========== ==========
Number of units outstanding*.................... 8,138 50,910 26,498 400,565 319,002 191,743
------------ ---------- ---------- ---------- ---------- ----------
Net asset value per unit outstanding*........... $ 11.16 $ 12.07 $ 11.04 $ 10.86 $ 16.08 $ 12.71
=========== ========== =========== ========== ========== ==========
<CAPTION>
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................... $22,951,520 $ 1,634,862 $ 805,224
========== ============ ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $25,210,073 $ 1,731,444 $ 831,448
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 0 0 0
Amount due from Enterprise Accumulation Trust... 5,270 338 154
Amount due from MONY America.................... 30,697 323 113
Amount due from MONY Series Fund, Inc........... 0 0 0
----------- ------------- ----------
Total assets............................ 25,246,040 1,732,105 831,715
----------- ------------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 30,697 323 113
Amount due to MONY America...................... 5,270 338 154
Amount due to MONY Series Fund, Inc............. 0 0 0
----------- ------------- ----------
Total liabilities....................... 35,967 661 267
----------- ------------- ----------
Net assets...................................... $25,210,073 $ 1,731,444 $ 831,448
========== ============ ==========
Net assets consist of:
Contractholders' net payments............... $25,623,125 $ 1,864,972 $ 885,885
Cost of insurance withdrawals (Note 3)...... (3,897,375) (276,528) (130,778)
Undistributed net investment income......... 318,832 16,880 49,747
Accumulated net realized gain (loss) on
investments............................... 906,938 29,538 370
Unrealized appreciation of investments...... 2,258,553 96,582 26,224
----------- ------------- ----------
Net assets...................................... $25,210,073 $ 1,731,444 $ 831,448
========== ============ ==========
Number of units outstanding*.................... 1,532,486 128,820 66,709
----------- ------------- ----------
Net asset value per unit outstanding*........... $ 16.45 $ 13.44 $ 12.46
========== ============ ==========
</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, 1996
<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..................... $ 0 $ 1,204 $ 0 $ 0 $ 0 $ 4,359
Mortality and expense risk charges
(Note 3).......................... 3,666 3,853 1,063 582 6,210 524
---------- ---------- ------------ ---------- ---------- ----------
Net investment income (loss)........ (3,666) (2,649) (1,063) (582) (6,210) 3,835
---------- ---------- ------------ ---------- ---------- ----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............... 93,619 102,327 28,266 17,665 140,885 22,914
Cost of shares sold............... 70,648 66,846 27,601 15,676 111,305 22,914
---------- ---------- ------------ ---------- ---------- ----------
Net realized gain on investments.... 22,971 35,481 665 1,989 29,580 0
Net increase (decrease) in
unrealized appreciation of
investments....................... 92,373 80,163 5,698 (2,681) 110,202 0
---------- ---------- ------------ ---------- ---------- ----------
Net realized and unrealized gain
(loss) on investments............. 115,344 115,644 6,363 (692) 139,782 0
---------- ---------- ------------ ---------- ---------- ----------
Net increase (decrease) in net
assets resulting from
operations........................ $111,678 $112,995 $ 5,300 $ (1,274) $133,572 $ 3,835
======== ======== ========= ======== ======== ========
</TABLE>
See notes to financial statements.
7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.............. $ 0 $ 0 $ 0 $ 101,677 $ 66,222 $ 39,244 $ 243,882
Mortality and expense risk
charges (Note 3)........... 404 3,193 1,630 15,263 20,028 10,291 109,123
------------ ---------- ---------- ----------- ---------- ---------- ----------
Net investment income
(loss)..................... (404) (3,193) (1,630) 86,414 46,194 28,953 134,759
------------ ---------- ---------- ----------- ---------- ---------- ----------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales........ 38,393 159,811 53,965 15,827,331 1,265,465 634,803 6,072,015
Cost of shares sold........ 39,108 159,016 53,059 15,827,331 1,090,608 604,229 5,288,349
------------ ---------- ---------- ----------- ---------- ---------- ----------
Net realized gain (loss) on
investments................ (715) 795 906 0 174,857 30,574 783,666
Net increase in unrealized
appreciation of
investments................ 3,148 13,609 7,805 0 357,881 78,392 2,166,435
------------ ---------- ---------- ----------- ---------- ---------- ----------
Net realized and unrealized
gain on investments........ 2,433 14,404 8,711 0 532,738 108,966 2,950,101
------------ ---------- ---------- ----------- ---------- ---------- ----------
Net increase in net assets
resulting from
operations................. $ 2,029 $ 11,211 $ 7,081 $ 86,414 $ 578,932 $137,919 $3,084,860
========= ======== ========= ========== ========= ======== =========
<CAPTION>
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
Dividend income.............. $ 6,221 $ 46,366
Mortality and expense risk
charges (Note 3)........... 7,279 4,020
------------- ----------
Net investment income
(loss)..................... (1,058) 42,346
------------- ----------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales........ 432,562 387,912
Cost of shares sold........ 409,190 387,732
------------- ----------
Net realized gain (loss) on
investments................ 23,372 180
Net increase in unrealized
appreciation of
investments................ 96,691 25,863
------------- ----------
Net realized and unrealized
gain on investments........ 120,063 26,043
------------- ----------
Net increase in net assets
resulting from
operations................. $ 119,005 $ 68,389
========= ========
</TABLE>
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
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
-------------------- -------------------- --------------------
1996 1995 1996 1995 1996 1995
-------- -------- -------- -------- -------- --------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................... $ (3,666) $ 33,459 $ (2,649) $ 27,822 $ (1,063) $ 9,165
Net realized gain on investments....................... 22,971 30,308 35,481 39,090 665 2,059
Net increase (decrease) in unrealized appreciation of
investments.......................................... 92,373 57,362 80,163 88,922 5,698 11,732
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations............................................. 111,678 121,129 112,995 155,834 5,300 22,956
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units................ 46,370 246,538 38,780 56,024 12,039 13,113
Net asset value of units redeemed or used to meet
contract obligations................................. (75,563) (164,237) (90,508) (132,231) (23,076) (23,804)
-------- -------- -------- -------- -------- --------
Net increase (decrease) from unit transactions.......... (29,193) 82,301 (51,728) (76,207) (11,037) (10,691)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets................... 82,485 203,430 61,267 79,627 (5,737) 12,265
Net assets beginning of year............................ 551,041 347,611 605,183 525,556 182,778 170,513
-------- -------- -------- -------- -------- --------
Net assets end of year*................................. $633,526 $551,041 $666,450 $605,183 $177,041 $182,778
======== ======== ======== ======== ======== ========
Units outstanding beginning of year..................... 15,643 12,809 16,377 18,826 8,556 9,112
Units issued during the year............................ 1,232 8,221 1,004 1,763 562 652
Units redeemed during the year.......................... (1,917) (5,387) (2,232) (4,212) (1,077) (1,208)
-------- -------- -------- -------- -------- --------
Units outstanding end of year........................... 14,958 15,643 15,149 16,377 8,041 8,556
======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income of: $114,981 $118,647 $251,131 $253,780 $154,460 $155,523
<CAPTION>
LONG TERM DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------- ---------------------- -------------------
1996 1995 1996 1995 1996 1995
-------- -------- ---------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................... $ (582) $ 5,101 $ (6,210) $ 46,804 $ 3,835 $ 5,662
Net realized gain on investments....................... 1,989 5,208 29,580 35,442 0 0
Net increase (decrease) in unrealized appreciation of
investments.......................................... (2,681) 16,634 110,202 125,651 0 0
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations............................................. (1,274) 26,943 133,572 207,897 3,835 5,662
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units................ 5,926 7,195 85,626 90,610 9,558 137,395
Net asset value of units redeemed or used to meet
contract obligations................................. (15,517) (29,360) (124,946) (145,580) (18,398) (235,050)
-------- -------- -------- -------- -------- --------
Net increase (decrease) from unit transactions.......... (9,591) (22,165) (39,320) (54,970) (8,840) (97,655)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets................... (10,865) 4,778 94,252 152,927 (5,005) (91,993)
Net assets beginning of year............................ 106,118 101,340 989,489 836,562 90,294 182,287
-------- -------- -------- -------- -------- --------
Net assets end of year*................................. $ 95,253 $106,118 $1,083,741 $989,489 $85,289 $ 90,294
======== ======== ======== ======== ======== ========
Units outstanding beginning of year..................... 3,869 4,777 35,607 37,807 5,499 11,659
Units issued during the year............................ 226 296 2,942 3,647 570 8,586
Units redeemed during the year.......................... (591) (1,204) (4,270) (5,847) (1,099) (14,746)
-------- -------- -------- -------- -------- --------
Units outstanding end of year........................... 3,504 3,869 34,279 35,607 4,970 5,499
======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income of: $ 94,948 $ 95,530 $ 455,761 $461,971 $73,487 $ 69,652
</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 TERM LONG TERM GOVERNMENT
BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------ ------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR APRIL 20, 1995** FOR THE YEAR MARCH 31, 1995** FOR THE YEAR MARCH 20, 1995**
ENDED THROUGH ENDED THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996 1995
------------ ---------------- ------------ ---------------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ (404) $ 1,414 $ (3,193) $ 13,958 $ (1,630) $ 5,094
Net realized gain (loss) on
investments.................... (715) 374 795 1,166 906 133
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,148 (915) 13,609 8,277 7,805 (708)
------------ -------- ------------ ---------------- ------------ ----------------
Net increase in net assets
resulting from operations........ 2,029 873 11,211 23,401 7,081 4,519
------------ -------- ------------ ---------------- ------------ ----------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 82,991 29,827 425,430 254,605 149,977 171,901
Net asset value of units redeemed
or used to meet contract
obligations.................... (20,916) (3,980) (91,922) (8,194) (35,779) (5,042)
------------ -------- ------------ ---------------- ------------ ----------------
Net increase from unit
transactions..................... 62,075 25,847 333,508 246,411 114,198 166,859
------------ -------- ------------ ---------------- ------------ ----------------
Net increase in net assets......... 64,104 26,720 344,719 269,812 121,279 171,378
Net assets beginning of period..... 26,720 0 269,812 0 171,378 0
------------ -------- ------------ ---------------- ------------ ----------------
Net assets end of period*.......... $ 90,824 $ 26,720 $614,531 $269,812 $292,657 $171,378
============ =============== ============ ================ ============ ================
Units outstanding beginning of
period........................... 2,464 0 22,127 0 15,959 0
Units issued during the period..... 7,592 2,838 36,743 22,925 13,851 16,439
Units redeemed during the period... (1,918) (374) (7,960) (798) (3,312) (480)
------------ -------- ------------ ---------------- ------------ ----------------
Units outstanding end of period.... 8,138 2,464 50,910 22,127 26,498 15,959
============ =============== ============ ================ ============ ================
- ---------------
*Includes undistributed net
investment income of: $ 1,010 $ 1,414 $ 10,765 $ 13,958 $ 3,464 $ 5,094
**Commencement of operations.
<CAPTION>
MONEY
MARKET
SUBACCOUNT
---------------------------------
FOR THE PERIOD
FOR THE YEAR FEBRUARY 17, 1995**
ENDED THROUGH
DECEMBER 31, DECEMBER 31,
1996 1995
------------ -------------------
<S> <C> <C>
From operations:
Net investment income (loss)..... $ 86,414 $ 20,376
Net realized gain (loss) on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
------------ -------------------
Net increase in net assets
resulting from operations........ 86,414 20,376
------------ -------------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 15,675,163 8,289,772
Net asset value of units redeemed
or used to meet contract
obligations.................... (13,113,154) (6,609,331)
------------ -------------------
Net increase from unit
transactions..................... 2,562,009 1,680,441
------------ -------------------
Net increase in net assets......... 2,648,423 1,700,817
Net assets beginning of period..... 1,700,817 0
------------ -------------------
Net assets end of period*.......... $ 4,349,240 $ 1,700,817
============ ==================
Units outstanding beginning of
period........................... 163,465 0
Units issued during the period..... 1,469,700 807,565
Units redeemed during the period... (1,232,600) (644,100)
------------ -------------------
Units outstanding end of period.... 400,565 163,465
============ ==================
- ---------------
*Includes undistributed net
investment income of: $ 106,790 $ 20,376
**Commencement of operations.
</TABLE>
See notes to financial statements.
10
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
--------------------------------------------------------------------------
MANAGED
EQUITY SUBACCOUNT SMALL CAP SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- ------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR MARCH 8, 1995** FOR THE YEAR MARCH 9, 1995** FOR THE YEAR
ENDED THROUGH ENDED THROUGH ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996
------------ --------------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ $ 46,194 $ 25,168 $ 28,953 $ 16,433 $ 134,759
Net realized gain on investments............ 174,857 23,391 30,574 9,760 783,666
Net increase (decrease) in unrealized
appreciation of investments............... 357,881 23,213 78,392 (4,063) 2,166,435
---------- ---------- ---------- -------- -----------
Net increase in net assets resulting from
operations.................................. 578,932 71,772 137,919 22,130 3,084,860
---------- ---------- ---------- -------- -----------
From unit transactions:
Net proceeds from the issuance of units..... 4,459,200 1,073,215 2,152,749 662,265 20,620,582
Net asset value of units redeemed or used to
meet contract obligations................. (952,864) (100,511) (454,428) (83,568) (4,735,332)
---------- ---------- ---------- -------- -----------
Net increase from unit transactions.......... 3,506,336 972,704 1,698,321 578,697 15,885,250
---------- ---------- ---------- -------- -----------
Net increase in net assets................... 4,085,268 1,044,476 1,836,240 600,827 18,970,110
Net assets beginning of period............... 1,044,476 0 600,827 0 6,239,963
---------- ---------- ---------- -------- -----------
Net assets end of period*.................... $5,129,744 $ 1,044,476 $2,437,067 $ 600,827 $25,210,073
========== ========== ========== ======== ===========
Units outstanding beginning of period........ 80,766 0 52,194 0 465,095
Units issued during the period............... 303,412 88,980 176,984 59,708 1,382,408
Units redeemed during the period............. (65,176) (8,214) (37,435) (7,514) (315,017)
---------- ---------- ---------- -------- -----------
Units outstanding end of period.............. 319,002 80,766 191,743 52,194 1,532,486
========== ========== ========== ======== ===========
- ---------------
*Includes undistributed net investment
income of:.................................. $ 71,362 $ 25,168 $ 45,386 $ 16,433 $ 318,832
**Commencement of operations.
<CAPTION>
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
----------------------------- ------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 8, 1995** FOR THE YEAR MARCH 8, 1995** FOR THE YEAR MARCH 20, 1995**
THROUGH ENDED THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1996 1995 1996 1995
--------------- ------------ --------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ $ 184,073 $ (1,058) $ 17,938 $ 42,346 $ 7,401
Net realized gain on investments............ 123,272 23,372 6,166 180 190
Net increase (decrease) in unrealized
appreciation of investments............... 92,118 96,691 (109) 25,863 361
---------- -------- -------- -------- --------
Net increase in net assets resulting from
operations.................................. 399,463 119,005 23,995 68,389 7,952
---------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units..... 6,530,478 1,524,746 394,240 535,643 367,392
Net asset value of units redeemed or used to
meet contract obligations................. (689,978) (291,724) (38,818) (125,293) (22,635)
---------- -------- -------- -------- --------
Net increase from unit transactions.......... 5,840,500 1,233,022 355,422 410,350 344,757
---------- -------- -------- -------- --------
Net increase in net assets................... 6,239,963 1,352,027 379,417 478,739 352,709
Net assets beginning of period............... 0 379,417 0 352,709 0
---------- -------- -------- -------- --------
Net assets end of period*.................... $ 6,239,963 $1,731,444 $ 379,417 $831,448 $352,709
========== ======== ======== ======== ========
Units outstanding beginning of period........ 0 31,566 0 31,730 0
Units issued during the period............... 519,384 120,205 34,979 45,756 33,810
Units redeemed during the period............. (54,289) (22,951) (3,413) (10,777) (2,080)
---------- -------- -------- -------- --------
Units outstanding end of period.............. 465,095 128,820 31,566 66,709 31,730
========== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment
income of:.................................. $ 184,073 $ 16,880 $ 17,938 $ 49,747 $ 7,401
**Commencement of operations.
</TABLE>
See notes to financial statements.
11
<PAGE> 14
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 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 98 and 100 to 133,
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 Funds. 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
Portfolios, 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 owner 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 1996 aggregated $5,429,287.
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.
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.
12
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1996 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
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......................... 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
-------- -------- -------- ------- -------- -------
Shares acquired:
Shares......................... 2,219 2,202 1,526 607 5,732 13,550
Amount......................... $ 60,760 $ 46,746 $ 16,166 $ 7,492 $ 95,355 $ 13,550
Shares received for reinvestment
of dividends:
Shares......................... 0 58 0 0 0 4,359
Amount......................... $ 0 $ 1,204 $ 0 $ 0 $ 0 $ 4,359
Shares redeemed:
Shares......................... (3,304) (4,689) (2,666) (1,428) (8,436) (22,914)
Amount......................... $(70,648) $(66,846) $(27,601) $(15,676) $ (111,305) $ (22,914)
-------- -------- -------- ------- -------- -------
Net change:
Shares......................... (1,085) (2,429) (1,140) (821) (2,704) (5,005)
Amount......................... $ (9,888) $(18,896) $(11,435) $ (8,184) $ (15,950) $ (5,005)
-------- -------- -------- ------- -------- -------
Shares end of year:
Shares......................... 20,860 28,432 16,153 7,418 60,240 85,289
Amount......................... $483,575 $480,536 $168,956 $ 87,402 $ 838,945 $ 85,289
======== ======== ======== ======= ======== =======
</TABLE>
13
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1996
consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
MONY SERIES FUND, INC. ---------------------------------------------------------------
------------------------------------------------- HIGH
INTERMEDIATE LONG TERM GOVERNMENT MONEY INTERNATIONAL YIELD
TERM BOND BOND SECURITIES MARKET EQUITY SMALL 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...... 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
acquired:
Shares...... 9,370 39,960 16,103 18,374,077 178,410 118,551 697,438 290,568 95,894
Amount...... $100,064 $ 490,126 $166,533 $ 18,374,077 $ 4,751,773 $2,322,833 $21,848,142 $ 1,658,305 $ 794,242
Shares
received for
reinvestment
of
dividends:
Shares...... 0 0 0 101,677 2,295 1,941 7,108 1,028 61,650
Amount...... $ 0 $ 0 $ 0 $ 101,677 $ 66,222 $ 39,244 $ 243,882 $ 6,221 $ 46,366
Shares
redeemed:
Shares...... (3,611) (13,047) (5,228) (15,827,331) (47,690) (32,477) (192,152) (75,800) (73,070)
Amount...... $(39,108) $(159,016) $(53,059) $(15,827,331) $(1,090,608) $ (604,229) $(5,288,349) $ (409,190) $(387,732)
------- -------- -------- ---------- ---------- ---------- ----------- ---------- --------
Net change:
Shares...... 5,759 26,913 10,875 2,648,423 133,015 88,015 512,394 215,796 84,474
Amount...... $ 60,956 $ 331,110 $113,474 $ 2,648,423 $ 3,727,387 $1,757,848 $16,803,675 $ 1,255,336 $ 452,876
------- -------- -------- ---------- ---------- ---------- ----------- ---------- --------
Shares end of
year:
Shares...... 8,287 47,861 27,661 4,349,240 177,746 120,527 734,774 286,189 150,898
Amount...... $ 88,591 $ 592,645 $285,560 $ 4,349,240 $ 4,748,650 $2,362,738 $22,951,520 $ 1,634,862 $ 805,224
======= ======== ======== ========== ========== ========== =========== ========== ========
</TABLE>
14
<PAGE> 17
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, 1996, for the Variable Life's Subaccounts, 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 related statements of
operations for the year then ended and the statements of changes in net assets
for the year ended December 31, 1996 and 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 Bond Subaccounts for which the period
is from 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 Growth Subaccounts for which the period is from March 8, 1995
(commencement of operations) to December 31, 1995, and the Small Cap Subaccount
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, 1996, 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,
1996, the results of their operations for the year then ended, 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 14, 1997
15
<PAGE> 18
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<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)............. $ 46,373 $ 28,174 $ 6,328 $ 12,297 $ 52,351 $ 30,763
======== ======== ========= ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)............... $ 57,832 $ 33,085 $ 6,650 $ 13,604 $ 65,817 $ 30,763
---------- ---------- ------------ --------- ---------- ----------
Net assets............................... $ 57,832 $ 33,085 $ 6,650 $ 13,604 $ 65,817 $ 30,763
======== ======== ========= ======== ======== ========
Net assets consist of:
Contractholders' net payments.......... $ 64,578 $ 41,372 $ 8,760 $ 15,860 $ 64,834 $ 50,411
Cost of insurance withdrawals (Note
3).................................. (46,613) (28,308) (12,304) (34,667) (33,530) (43,532)
Undistributed net investment income.... 9,125 8,830 8,809 25,933 17,824 23,884
Accumulated net realized gain on
investments......................... 19,283 6,280 1,063 5,171 3,223 0
Unrealized appreciation of
investments......................... 11,459 4,911 322 1,307 13,466 0
---------- ---------- ------------ --------- ---------- ----------
Net assets............................... $ 57,832 $ 33,085 $ 6,650 $ 13,604 $ 65,817 $ 30,763
======== ======== ========= ======== ======== ========
Number of units outstanding*............. 1,726 965 333 588 2,404 1,867
---------- ---------- ------------ --------- ---------- ----------
Net asset value per unit outstanding*.... $ 33.50 $ 34.29 $ 19.95 $ 23.12 $ 27.38 $ 16.48
======== ======== ========= ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
16
<PAGE> 19
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM MONEY INTERNATIONAL HIGH YIELD
TERM BOND BOND MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ --------- ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost
(Note 4)............ $ 39 $12,147 $ 66,931 $ 54,857 $ 16,744 $129,659 $14,299 $ 368
========== ========= ========= ========= ========= ========= ========== =========
Investments in
Enterprise
Accumulation Trust
at net asset value
(Note 2)............ $ 0 $ 0 $ 0 $ 54,160 $ 16,754 $127,156 $14,460 $ 369
Investments in MONY
Series Fund, Inc. at
net asset value
(Note 2)............ 39 12,082 66,931 0 0 0 0 0
Amount due from
MONY................ 0 0 3,362 0 0 0 0 0
----- --------- ---------- ---------- ---------- ---------- ------------- ----------
Total assets...... 39 12,082 70,293 54,160 16,754 127,156 14,460 369
----- --------- ---------- ---------- ---------- ---------- ------------- ----------
LIABILITIES
Amount due to MONY
Series Fund, Inc.... 0 0 3,362 0 0 0 0 0
----- --------- ---------- ---------- ---------- ---------- ------------- ----------
Net assets............ $ 39 $12,082 $ 66,931 $ 54,160 $ 16,754 $127,156 $14,460 $ 369
========== ========= ========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net
payments.......... $ 43 $12,153 $ 66,876 $ 54,842 $ 16,647 $129,958 $14,259 $ 392
Cost of insurance
withdrawals (Note
3)................ (4) (4) (214) (509) (168) (1,430) (10) (25)
Undistributed/accumulated
net investment
income (loss)..... 0 (2) 269 687 261 1,186 50 1
Accumulated net
realized gain
(loss) on
investments....... 0 0 0 (163) 4 (55) 0 0
Unrealized
appreciation
(depreciation) of
investments....... 0 (65) 0 (697) 10 (2,503) 161 1
----- --------- ---------- ---------- ---------- ---------- ------------- ----------
Net assets............ $ 39 $12,082 $ 66,931 $ 54,160 $ 16,754 $127,156 $14,460 $ 369
========== ========= ========= ========= ========= ========= ========== =========
Number of units
outstanding*........ 4 1,217 6,655 5,358 1,611 11,951 1,439 37
----- --------- ---------- ---------- ---------- ---------- ------------- ----------
Net asset value per
unit outstanding*... $ 9.97 $ 9.93 $ 10.06 $ 10.11 $ 10.40 $ 10.64 $ 10.05 $10.12
========== ========= ========= ========= ========= ========= ========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
17
<PAGE> 20
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<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.......................... $ 0 $ 56 $ 0 $ 0 $ 0 $1,560
Mortality and expense risk charges (Note
3)..................................... 381 184 39 80 373 188
------- ------ ---- ------ ------ ------
Net investment income (loss)............. (381) (128) (39) (80) (373) 1,372
------- ------ ---- ------ ------ ------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.................... 21,454 8,390 518 1,065 3,611 2,473
Cost of shares sold.................... 15,257 6,539 499 1,032 2,559 2,473
------- ------ ---- ------ ------ ------
Net realized gain on investments......... 6,197 1,851 19 33 1,052 0
Net increase (decrease) in unrealized
appreciation of investments............ 6,121 3,722 218 (93) 7,350 0
------- ------ ---- ------ ------ ------
Net realized and unrealized gain (loss)
on investments......................... 12,318 5,573 237 (60) 8,402 0
------- ------ ---- ------ ------ ------
Net increase (decrease) in net assets
resulting from operations.............. $ 11,937 $5,445 $198 $ (140) $8,029 $1,372
======= ====== ==== ====== ====== ======
</TABLE>
See notes to financial statements.
18
<PAGE> 21
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------
INTERMEDIATE LONG TERM MONEY
TERM BOND BOND MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ----------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 6, 1996* DECEMBER 6, 1996* OCTOBER 17, 1996* NOVEMBER 17, 1996*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31, 1996
------------------ ------------------ ----------------- ------------------
<S> <C> <C> <C> <C>
Dividend income....................... $0 $ 0 $ 316 $ 697
Mortality and expense risk charges
(Note 3)............................. 0 2 47 10
-
--- ------- -----
Net investment income................. 0 (2) 269 687
-
--- ------- -----
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................. 4 6 160,767 8,515
Cost of shares sold.................. 4 6 160,767 8,678
-
--- ------- -----
Net realized gain (loss) on
investments.......................... 0 0 0 (163)
Net increase (decrease) in unrealized
appreciation of investments.......... 0 (65) 0 (697)
-
--- ------- -----
Net realized and unrealized gain
(loss) on investments................ 0 (65) 0 (860)
-
--- ------- -----
Net increase (decrease) in net assets
resulting from operations............ $0 $(67) $ 269 $ (173)
=================== =================== ================== ===================
<CAPTION>
INTERMEDIATE HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- ------------------ -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, 1996* OCTOBER 28, 1996* NOVEMBER 21, 1996* DECEMBER 6, 1996*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31, 1996
------------------ ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
Dividend income....................... $264 $ 1,215 $ 52 $ 1
Mortality and expense risk charges
(Note 3)............................. 3 29 2 0
--- ------ --- --
Net investment income................. 261 1,186 50 1
--- ------ --- --
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................. 548 9,644 13 25
Cost of shares sold.................. 544 9,699 13 25
--- ------ --- --
Net realized gain (loss) on
investments.......................... 4 (55) 0 0
Net increase (decrease) in unrealized
appreciation of investments.......... 10 (2,503) 161 1
--- ------ --- --
Net realized and unrealized gain
(loss) on investments................ 14 (2,558) 161 1
--- ------ --- --
Net increase (decrease) in net assets
resulting from operations............ $275 $(1,372) $211 $ 2
=================== ================== =================== ==================
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
19
<PAGE> 22
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
-------------------------------------------------------------------
LONG
INTERMEDIATE TERM
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT SUBACCOUNT
------------------ ------------------ --------------- -------
1996 1995 1996 1995 1996 1995 1996
-------- ------- -------- ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............................. $ (381) $ 3,663 $ (128) $ 1,419 $ (39) $ 327 $ (80)
Net realized gain on investments......................... 6,197 1,900 1,851 358 19 17 33
Net increase (decrease) in unrealized appreciation of
investments............................................ 6,121 5,010 3,722 2,181 218 454 (93)
------- ------- ------- ------- ------ ------ -------
Net increase (decrease) in net assets resulting from
operations............................................... 11,937 10,573 5,445 3,958 198 798 (140)
------- ------- ------- ------- ------ ------ -------
From unit transactions:
Net proceeds from the issuance of units.................. 7,362 21,677 6,575 20,006 372 516 608
Net asset value of units redeemed or used to meet
contract obligations................................... (20,999) (9,320) (8,207) (6,980) (432) (418) (985)
------- ------- ------- ------- ------ ------ -------
Net increase (decrease) from unit transaction.............. (13,637) 12,357 (1,632) 13,026 (60) 98 (377)
------- ------- ------- ------- ------ ------ -------
Net increase (decrease) in net assets...................... (1,700) 22,930 3,813 16,984 138 896 (517)
Net assets beginning of year............................... 59,532 36,602 29,272 12,288 6,512 5,616 14,121
------- ------- ------- ------- ------ ------ -------
Net assets end of year*.................................... $ 57,832 $59,532 $ 33,085 $29,272 $6,650 $6,512 $13,604
======= ======= ======= ======= ====== ====== =======
Units outstanding beginning of year........................ 2,137 1,705 1,016 565 336 331 605
Units issued during the year............................... 241 815 213 735 19 28 28
Units redeemed during the year............................. (652) (383) (264) (284) (22) (23) (45)
------- ------- ------- ------- ------ ------ -------
Units outstanding end of year.............................. 1,726 2,137 965 1,016 333 336 588
======= ======= ======= ======= ====== ====== =======
- ---------------
*Includes undistributed net
investment income of: $ 9,125 $ 9,506 $ 8,830 $ 8,958 $8,809 $8,848 $25,933
<CAPTION>
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------- -----------------
1995 1996 1995 1996 1995
-------- ------- ------- ------- -------
<S> <<C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............................. $ 474 $ (373) $ 2,843 $ 1,372 $ 1,566
Net realized gain on investments......................... 8,193 1,052 439 0 0
Net increase (decrease) in unrealized appreciation of
investments............................................ 3,566 7,350 5,659 0 0
------- ------- ------- ------- -------
Net increase (decrease) in net assets resulting from
operations............................................... 12,233 8,029 8,941 1,372 1,566
------- ------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.................. 739 2,620 17,167 184 1,811
Net asset value of units redeemed or used to meet
contract obligations................................... (44,332) (3,238) (2,298) (2,285) (3,761)
------- ------- ------- ------- -------
Net increase (decrease) from unit transaction.............. (43,593) (618) 14,869 (2,101) (1,950)
------- ------- ------- ------- -------
Net increase (decrease) in net assets...................... (31,360) 7,411 23,810 (729) (384)
Net assets beginning of year............................... 45,481 58,406 34,596 31,492 31,876
------- ------- ------- ------- -------
Net assets end of year*.................................... $ 14,121 $65,817 $58,406 $30,763 $31,492
======= ======= ======= ======= -------
Units outstanding beginning of year........................ 2,521 2,427 1,805 1,997 2,123
Units issued during the year............................... 28 103 728 12 117
Units redeemed during the year............................. (1,944) (126) (106) (142) (243)
------- ------- ------- ------- -------
Units outstanding end of year.............................. 605 2,404 2,427 1,867 1,997
======= ======= ======= ======= =======
- ---------------
*Includes undistributed net
investment income of: $ 26,013 $17,824 $18,197 $23,884 $22,512
</TABLE>
See notes to financial statements.
20
<PAGE> 23
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------
INTERMEDIATE
TERM LONG TERM MONEY
BOND BOND MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 6, DECEMBER 6, OCTOBER 17, NOVEMBER 17,
1996** THROUGH 1996** THROUGH 1996** THROUGH 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1996 1996 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income........................... $ 0 $ (2) $ 269 $ 687
Net realized gains (losses) on investments...... 0 0 0 (163)
Net increase (decrease) in unrealized
appreciation of investments................... 0 (65) 0 (697)
--- ------- -------------- -------
Net increase (decrease) in net assets resulting
from operations................................. 0 (67) 269 (173)
--- ------- -------------- -------
From unit transactions:
Net proceeds from the issuance of units......... 43 12,153 221,062 54,842
Net asset value of units redeemed or used to
meet contract obligations..................... (4) (4) (154,400) (509)
--- ------- -------------- -------
Net increase from unit transactions............... 39 12,149 66,662 54,333
--- ------- -------------- -------
Net increase in net assets........................ 39 12,082 66,931 54,160
Net assets beginning of period.................... 0 0 0 0
--- ------- -------------- -------
Net assets end of period*......................... $ 39 $ 12,082 $ 66,931 $ 54,160
============ ============ ============ ============
Units outstanding beginning of period............. 0 0 0 0
Units issued during the period.................... 4 1,217 22,031 5,409
Units redeemed during the period.................. 0 0 (15,376) (51)
--- ------- -------------- -------
Units outstanding end of period................... 4 1,217 6,655 5,358
============ ============ ============ ============
- ---------------
*Includes undistributed/accumulated net
investment income (loss) of: $ 0 $ (2) $ 269 $ 687
============ ============ ============ ============
**Commencement of operations.
<CAPTION>
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, OCTOBER 28, NOVEMBER 21, DECEMBER 6,
1996** THROUGH 1996** THROUGH 1996** THROUGH 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1996 1996 1996
-------------- -------------- -------------- --------------
<S> <<C> <C> <C> <C>
From operations:
Net investment income........................... $ 261 $ 1,186 $ 50 $ 1
Net realized gains (losses) on investments...... 4 (55) 0 0
Net increase (decrease) in unrealized
appreciation of investments................... 10 (2,503) 161 1
------- -------------- ------- -----
Net increase (decrease) in net assets resulting
from operations................................. 275 (1,372) 211 2
------- -------------- ------- -----
From unit transactions:
Net proceeds from the issuance of units......... 16,647 129,958 14,259 392
Net asset value of units redeemed or used to
meet contract obligations..................... (168) (1,430) (10) (25)
------- -------------- ------- -----
Net increase from unit transactions............... 16,479 128,528 14,249 367
------- -------------- ------- -----
Net increase in net assets........................ 16,754 127,156 14,460 369
Net assets beginning of period.................... 0 0 0 0
------- -------------- ------- -----
Net assets end of period*......................... $ 16,754 $127,156 $ 14,460 $369
============ ============ ============ ============
Units outstanding beginning of period............. 0 0 0 0
Units issued during the period.................... 1,628 12,086 1,440 39
Units redeemed during the period.................. (17) (135) (1) (2)
------- -------------- ------- -----
Units outstanding end of period................... 1,611 11,951 1,439 37
============ ============ ============ ============
- ---------------
*Includes undistributed/accumulated net
investment income (loss) of: $ 261 $ 1,186 $ 50 $ 1
============ ============ ============ ============
**Commencement of operations.
</TABLE>
See notes to financial statements.
21
<PAGE> 24
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 Variable Life Insurance Policies and Variable Universal
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 fourteen subaccounts within the Variable Account, and
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 1996. 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 and Enterprise are contained on pages 66 to 98 and 100 to 133,
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 of the Funds
is stated at value which is the net asset value of the Funds. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolios, the net
asset values are based on amortized cost of the securities held which
approximates value.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner 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 1996 aggregated $17,099.
MONY 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 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.
22
<PAGE> 25
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1996 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
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................................... 2,371 1,493 616 1,096 3,715 31,492
Amount................................... $ 54,194 $28,083 $6,408 $12,721 $52,290 $31,492
-------- ------- ------ ------- ------- -------
Shares acquired:
Shares................................... 269 311 39 49 158 184
Amount................................... $ 7,436 $ 6,574 $ 419 $ 608 $ 2,620 $ 184
Shares received for reinvestment of
dividends:
Shares................................... 0 3 0 0 0 1,560
Amount................................... $ 0 $ 56 $ 0 $ 0 $ 0 $ 1,560
Shares redeemed:
Shares................................... (736) (395) (48) (86) (215) (2,473)
Amount................................... $ (15,257) $(6,539) $ (499) $(1,032) $(2,559) $(2,473)
-------- ------- ------ ------- ------- -------
Net change:
Shares................................... (467) (81) (9) (37) (57) (729)
Amount................................... $ (7,821) $ 91 $ (80) $ (424) $ 61 $ (729)
-------- ------- ------ ------- ------- -------
Shares end of year:
Shares................................... 1,904 1,412 607 1,059 3,658 30,763
Amount................................... $ 46,373 $28,174 $6,328 $12,297 $52,351 $30,763
======== ======= ====== ======= ======= =======
</TABLE>
23
<PAGE> 26
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1996
consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------ --------------------------------------------------------------
INTERMEDIATE LONG TERM MONEY INTERNATIONAL HIGH YIELD
TERM BOND BOND MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- --------- --------- --------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.................. 0 0 0 0 0 0 0 0
Amount.................. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
--- ------- --------- ------- ------- -------- ------- ----
Shares acquired:
Shares.................. 4 941 227,382 2,150 843 3,953 2,383 72
Amount.................. $ 43 $12,153 $ 227,382 $62,838 $17,024 $ 138,143 $14,260 $392
Shares received for
reinvestment of
dividends:
Shares.................. 0 0 316 24 13 35 9 0
Amount.................. $ 0 $ 0 $ 316 $ 697 $ 264 $ 1,215 $ 52 $ 1
Shares redeemed:
Shares.................. 0 0 (160,767) (297) (27) (282) (2) (5)
Amount.................. $ (4) $ (6) $(160,767) $(8,678) $ (544) $ (9,699) $ (13) $(25)
--- ------- --------- ------- ------- -------- ------- ----
Net change:
Shares.................. 4 941 66,931 1,877 829 3,706 2,390 67
Amount.................. $ 39 $12,147 $ 66,931 $54,857 $16,744 $ 129,659 $14,299 $368
--- ------- --------- ------- ------- -------- ------- ----
Shares end of year:
Shares.................. 4 941 66,931 1,877 829 3,706 2,390 67
Amount.................. $ 39 $12,147 $ 66,931 $54,857 $16,744 $ 129,659 $14,299 $368
=== ======= ========= ======= ======= ======== ======= ====
</TABLE>
24
<PAGE> 27
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
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, 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, Money Market, Equity, Small Cap, Managed, International
Growth and High Yield Bond Subaccounts) as of December 31, 1996, for the
Variable Life's Subaccounts, 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
related statements of operations and changes in net assets for the Intermediate
Term Bond, Long Term Bond and High Yield Subaccounts for which the period is
from December 6, 1996 (commencement of operations) to December 31, 1996, the
Money Market Subaccount for which the period is from October 17, 1996
(commencement of operations) to December 31, 1996, the Equity Subaccount for
which the period is from November 17, 1996 (commencement of operations) to
December 31, 1996, the Small Cap Subaccount for which the period is from
November 1, 1996 (commencement of operations) to December 31, 1996, the Managed
Subaccount for which the period is from October 28, 1996 (commencement of
operations) to December 31, 1996, and the International Growth Subaccount for
which the period is from November 21, 1996 (commencement of operations) to
December 31, 1996. 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, 1996, 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, 1996, 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 14, 1997
25
<PAGE> 28
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................... $ 62,773 $ 77,997 $ 31,968 $ 79,837 $ 51,623
======== ======== ======= ======== =======
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... $101,498 $ 93,781 $ 33,156 $115,390 $ 51,623
-------- -------- ------- -------- -------
Net assets.................................... $101,498 $ 93,781 $ 33,156 $115,390 $ 51,623
-------- -------- ------- -------- -------
Net assets consist of:
Contractholders' net payments................. $ 24,889 $ (1,786) $ 17,544 $ 33,265 $ 36,098
Cost of insurance withdrawals (Note 3)........ (7,736) (12,557) (5,146) (12,850) (3,286)
Undistributed net investment income........... 15,244 50,759 20,693 46,551 18,811
Accumulated net realized gain (loss) on
investments................................ 30,376 41,581 (1,123) 12,871 0
Unrealized appreciation of investments........ 38,725 15,784 1,188 35,553 0
-------- -------- ------- -------- -------
Net assets...................................... $101,498 $ 93,781 $ 33,156 $115,390 $ 51,623
======== ======== ======= ======== =======
Number of units outstanding*.................... 3,027 2,978 1,802 4,388 3,391
-------- -------- ------- -------- -------
Net asset value per unit outstanding*........... $ 33.53 $ 31.50 $ 18.40 $ 26.30 $ 15.23
======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
26
<PAGE> 29
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<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....................... $ 0 $ 159 $ 0 $ 0 $ 0 $ 2,712
Mortality and expense risk charges
(Note 3)............................ 795 839 305 69 925 461
------- ------- ------- ------- ------- -------
Net investment income (loss).......... (795) (680) (305) (69) (925) 2,251
------- ------- ------- ------- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 1,154 81,541 11,873 47,933 2,019 12,445
Cost of shares sold................. 480 55,431 12,306 50,557 1,438 12,445
------- ------- ------- ------- ------- -------
Net realized gain (loss) on
investments......................... 674 26,110 (433) (2,624) 581 0
Net increase in unrealized
appreciation (depreciation) of
investments......................... 17,009 (7,802) 1,495 218 14,096 0
------- ------- ------- ------- ------- -------
Net realized and unrealized gain
(loss) on investments............... 17,683 18,308 1,062 (2,406) 14,677 0
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets
resulting from operations........... $ 16,888 $ 17,628 $ 757 $(2,475) $ 13,752 $ 2,251
======= ======= ======= ======= ======= =======
</TABLE>
See notes to financial statements.
27
<PAGE> 30
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
-------------------- --------------------- ---------------------
1996 1995 1996 1995 1996 1995
-------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ (795) $ 4,929 $ (680) $ 7,256 $ (305) $ 2,069
Net realized gain (loss) on investments............... 674 927 26,110 809 (433) (994)
Net increase (decrease) in unrealized appreciation of
investments......................................... 17,009 13,545 (7,802) 16,774 1,495 4,709
-------- ------- -------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations............................................ 16,888 19,401 17,628 24,839 757 5,784
-------- ------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units............... 244 0 1,110 59,567 273 0
Net asset value of units redeemed or used to meet
contract obligations................................ (353) (1,063) (80,678) (2,500) (11,607) (28,812)
-------- ------- -------- -------- -------- --------
Net increase (decrease) from unit transactions......... (109) (1,063) (79,568) 57,067 (11,334) (28,812)
-------- ------- -------- -------- -------- --------
Net increase (decrease) in net assets.................. 16,779 18,338 (61,940) 81,906 (10,577) (23,028)
Net assets beginning of year........................... 84,719 66,381 155,721 73,815 43,733 66,761
-------- ------- -------- -------- -------- --------
Net assets end of year*................................ $101,498 $84,719 $ 93,781 $155,721 $ 33,156 $ 43,733
======== ======= ======== ======== ======== ========
Units outstanding beginning of year.................... 3,031 3,075 5,872 3,676 2,443 4,247
Units issued during the year........................... 8 0 41 2,308 14 0
Units redeemed during the year......................... (12) (44) (2,935) (112) (655) (1,804)
-------- ------- -------- -------- -------- --------
Units outstanding end of year.......................... 3,027 3,031 2,978 5,872 1,802 2,443
======== ======= ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income of:...... $ 15,244 $16,039 $ 50,759 $ 51,439 $ 20,693 $ 20,998
<CAPTION>
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------- --------------------- ---------------------
1996 1995 1996 1995 1996 1995
-------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ (69) $ 2,569 $ (925) $ 4,617 $ 2,251 $ 2,896
Net realized gain (loss) on investments............... (2,624) 92 581 452 0 0
Net increase (decrease) in unrealized appreciation of
investments......................................... 218 375 14,096 15,714 0 0
-------- ------- -------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations............................................ (2,475) 3,036 13,752 20,783 2,251 2,896
-------- ------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units............... 1,724 40,033 440 142 196 0
Net asset value of units redeemed or used to meet
contract obligations................................ (48,707) (1,224) (1,094) (1,453) (11,945) (28,160)
-------- ------- -------- -------- -------- --------
Net increase (decrease) from unit transactions......... (46,983) 38,809 (654) (1,311) (11,749) (28,160)
-------- ------- -------- -------- -------- --------
Net increase (decrease) in net assets.................. (49,458) 41,845 13,098 19,472 (9,498) (25,264)
Net assets beginning of year........................... 49,458 7,613 102,292 82,820 61,121 86,385
-------- ------- -------- -------- -------- --------
Net assets end of year*................................ $ 0 $49,458 $115,390 $102,292 $ 51,623 $ 61,121
======== ======= ======== ======== ======== ========
Units outstanding beginning of year.................... 2,268 450 4,414 4,478 4,185 6,196
Units issued during the year........................... 42 1,883 19 8 16 0
Units redeemed during the year......................... (2,310) (65) (45) (72) (810) (2,011)
-------- ------- -------- -------- -------- --------
Units outstanding end of year.......................... 0 2,268 4,388 4,414 3,391 4,185
======== ======= ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income of:...... $ 0 $23,056 $ 18,811 $ 47,476 $ 18,811 $ 16,560
See notes to financial statements.
</TABLE>
28
<PAGE> 31
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 available within the Variable Account.
One of the subaccounts has no assets and five subaccounts 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 98 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 owner 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 subaccounts for
1996 aggregated $1,546.
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.
29
<PAGE> 32
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1996 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.......................................... 3,374 7,941 4,137 3,840 6,507 61,121
Amount.......................................... $63,003 $132,135 $ 44,040 $ 49,676 $80,835 $ 61,121
--------- --------- ------------ --------- ----------- ---------
Shares acquired:
Shares.......................................... 9 54 22 71 27 235
Amount.......................................... $ 250 $ 1,134 $ 234 $ 881 $ 440 $ 235
Shares received for reinvestment of dividends:
Shares.......................................... 0 8 0 0 0 2,712
Amount.......................................... $ 0 $ 159 $ 0 $ 0 $ 0 $ 2,712
Shares redeemed:
Shares.......................................... (41) (4,002) (1,134) (3,911) (120) (12,445)
Amount.......................................... $ (480) $(55,431) $(12,306) $(50,557) $(1,438) $(12,445)
--------- --------- ------------ --------- ----------- ---------
Net change:
Shares.......................................... (32) (3,940) (1,112) (3,840) (93) (9,498)
Amount.......................................... $ (230) $(54,138) $(12,072) $(49,676) $ (998) $ (9,498)
--------- --------- ------------ --------- ----------- ---------
Shares end of year:
Shares.......................................... 3,342 4,001 3,025 0 6,414 51,623
Amount.......................................... $62,773 $ 77,997 $ 31,968 $ 0 $79,837 $ 51,623
======== ======== =========== ========== ========= ========
</TABLE>
30
<PAGE> 33
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, the Equity Growth,
Equity Income, Intermediate Term Bond, Diversified and Money Market Subaccounts)
as of December 31, 1996, 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. We have also audited the statement of operations of the
Long Term Bond Subaccount for the year ended December 31, 1996 and its related
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, 1996, 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 S as of December 31,
1996, 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 14, 1997
31
<PAGE> 34
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4).......................................... $ 28,336 $ 51,151
======= =========
Investments in MONY Series Fund, Inc. at net asset value (Note 2)..... $ 45,398 $ 68,849
------- ---------
Net assets............................................................ $ 45,398 $ 68,849
======= =========
Net assets consist of:
Contractholders' net payments....................................... $ 16,607 $ (141,610)
Cost of insurance withdrawals (Note 3).............................. (1,862) (65,762)
Undistributed net investment income................................. 11,032 145,387
Accumulated net realized gains on investments....................... 2,559 113,136
Unrealized appreciation of investments.............................. 17,062 17,698
------- ---------
Net assets............................................................ $ 45,398 $ 68,849
======= =========
Number of units outstanding*.......................................... 1,526 2,800
------- ---------
Net asset value per unit outstanding*................................. $ 29.75 $ 24.59
======= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
32
<PAGE> 35
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
Dividend income....................................................... $ 77 $ 0
Mortality and expense risk charges (Note 3)........................... 353 552
------ ------
Net investment loss................................................... (276) (552)
------ ------
Realized and unrealized gains on investments (Note 2):
Proceeds from sales................................................. 560 1,079
Cost of shares sold................................................. 353 811
------ ------
Net realized gains on investments..................................... 207 268
Net increase in unrealized appreciation of investments................ 7,258 8,492
------ ------
Net realized and unrealized gains on investments...................... 7,465 8,760
------ ------
Net increase in net assets resulting from operations.................. $7,189 $8,208
====== ======
</TABLE>
See notes to financial statements.
33
<PAGE> 36
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).............. $ (276) $ 1,692 $ (552) $ 2,761
Net realized gains on investments......... 207 142 268 168
Net increase in unrealized appreciation of
investments............................ 7,258 7,523 8,492 9,476
------- ------- -------- --------
Net increase in net assets resulting from
operations................................ 7,189 9,357 8,208 12,405
------- ------- -------- --------
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........... (207) (265) (527) (564)
------- ------- -------- --------
Net decrease from unit transactions......... (207) (265) (527) (564)
------- ------- -------- --------
Net increase in net assets.................. 6,982 9,092 7,681 11,841
Net assets beginning of year................ 38,416 29,324 61,168 49,327
------- ------- -------- --------
Net assets end of year*..................... $ 45,398 $ 38,416 $ 68,849 $ 61,168
======= ======= ======== ========
Units outstanding beginning of year......... 1,533 1,546 2,823 2,852
Units issued during the year................ 0 0 0 0
Units redeemed during the year.............. (7) (13) (23) (29)
------- ------- -------- --------
Units outstanding end of year............... 1,526 1,533 2,800 2,823
======= ======= ======== ========
- ---------------
*Includes undistributed net investment
income of:................................ $ 11,032 $ 11,308 $145,387 $145,939
</TABLE>
See notes to financial statements.
34
<PAGE> 37
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 98 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 owner 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 1996
aggregated $602.
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.
35
<PAGE> 38
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1996 consist
of the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of year:
Shares............................................................... 1,959 3,891
Amount............................................................... $ 28,612 $51,962
--------- -----------
Shares acquired:
Shares............................................................... 0 0
Amount............................................................... $ 0 $ 0
Shares received for reinvestment of dividends:
Shares............................................................... 3 0
Amount............................................................... $ 77 $ 0
Shares redeemed:
Shares............................................................... (26) (64)
Amount............................................................... $ (353) $ (811)
--------- -----------
Net change:
Shares............................................................... (23) (64)
Amount............................................................... $ (276) $ (811)
--------- -----------
Shares end of year:
Shares............................................................... 1,936 3,827
Amount............................................................... $ 28,336 $51,151
======= ========
</TABLE>
36
<PAGE> 39
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
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, the Equity Income and
Diversified Subaccounts) as of December 31, 1996, 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, 1996, 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, 1996, 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 14, 1997
37
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<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 4)..... $ 827,651 $ 893,812 $31,870,045 $47,687,932 $1,420,468 $120,638,664 $13,926,074
========== ========== =========== =========== ========== ============ ===========
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)............................. $1,114,506 $1,273,654 $33,263,991 $51,032,203 $1,866,918 $120,638,664 $14,282,771
Amount due from MONY America..... 0 0 16,433 1,967 0 843,431 619
Amount due from MONY Series Fund,
Inc. .......................... 6 0 12,442 12,857 24 181,780 681
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total assets............. 1,114,512 1,273,654 33,292,866 51,047,027 1,866,942 121,663,875 14,284,071
---------- ---------- ----------- ----------- ---------- ------------ -----------
LIABILITIES
Amount due to MONY America....... 6 0 12,442 12,857 24 181,780 681
Amount due to MONY Series Fund,
Inc. .......................... 0 0 16,433 1,967 0 843,431 619
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total liabilities........ 6 0 28,875 14,824 24 1,025,211 1,300
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets....................... $1,114,506 $1,273,654 $33,263,991 $51,032,203 $1,866,918 $120,638,664 $14,282,771
========== ========== =========== =========== ========== ============ ===========
Net assets consist of:
Contractholders' net
payments..................... $ 235,003 $ 239,406 $27,772,751 $39,582,879 $ 528,725 $109,770,616 $13,680,832
Undistributed net investment
income....................... 139,622 388,516 4,544,173 8,542,345 607,906 10,868,048 59,807
Accumulated net realized gain
(loss) on investments........ 453,026 265,890 (446,879) (437,292) 283,837 0 185,435
Unrealized appreciation of
investments.................. 286,855 379,842 1,393,946 3,344,271 446,450 0 356,697
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets....................... $1,114,506 $1,273,654 $33,263,991 $51,032,203 $1,866,918 $120,638,664 $14,282,771
========== ========== =========== =========== ========== ============ ===========
Number of units outstanding*..... 36,033 43,089 1,916,050 2,506,531 76,353 8,278,977 1,269,214
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net asset value per unit
outstanding*................... $ 30.93 $ 29.56 $ 17.36 $ 20.36 $ 24.45 $ 14.57 $ 11.25
========== ========== =========== =========== ========== ============ ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
38
<PAGE> 41
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<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 4)...... $219,775,741 $149,844,309 $1,278,396,527 $ 41,542,065 $ 29,411,432
============ ============ ============== =========== ===========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................. $272,469,883 $168,095,738 $1,688,910,010 $ 45,080,264 $ 30,415,667
Amount due from MONY America...... 144,761 25,128 634,897 14,131 17,398
Amount due from Enterprise
Accumulation Trust.............. 74,455 18,594 223,999 2,694 50,895
------------ ------------ -------------- ----------- -----------
Total assets............ 272,689,099 168,139,460 1,689,768,906 45,097,089 30,483,960
------------ ------------ -------------- ----------- -----------
LIABILITIES
Amount due to MONY America........ 74,455 18,594 223,999 2,694 50,895
Amount due to Enterprise
Accumulation Trust.............. 144,761 25,128 634,897 14,131 17,398
------------ ------------ -------------- ----------- -----------
Total liabilities....... 219,216 43,722 858,896 16,825 68,293
------------ ------------ -------------- ----------- -----------
Net assets........................ $272,469,883 $168,095,738 $1,688,910,010 $ 45,080,264 $ 30,415,667
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $187,301,054 $127,490,102 $1,044,762,609 $ 40,005,798 $ 27,029,447
Undistributed net investment
income....................... 9,206,890 15,143,700 84,475,226 456,622 2,129,990
Accumulated net realized gain on
investments.................. 23,267,797 7,210,507 149,158,692 1,079,645 251,995
Unrealized appreciation of
investments.................. 52,694,142 18,251,429 410,513,483 3,538,199 1,004,235
------------ ------------ -------------- ----------- -----------
Net assets........................ $272,469,883 $168,095,738 $1,688,910,010 $ 45,080,264 $ 30,415,667
============ ============ ============== =========== ===========
Number of units outstanding*...... 8,212,227 6,346,453 39,371,381 3,610,923 2,361,710
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 33.18 $ 26.49 $ 42.90 $ 12.48 $ 12.88
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
39
<PAGE> 42
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
OCC 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 4)............... $3,613,860 $1,918,686 $1,856,223 $2,767,076 $29,748,753
========== ========== ========== ========== ===========
Investments in OCC Accumulation Trust at
net asset value (Note 2)................. $3,613,860 $1,928,795 $2,874,538 $3,452,097 $45,854,945
---------- ---------- ---------- ---------- -----------
Net assets................................. $3,613,860 $1,928,795 $2,874,538 $3,452,097 $45,854,945
========== ========== ========== ========== ===========
Net assets consist of:
Contractholders' net payments............ $3,371,683 $1,602,466 $1,530,610 $2,531,095 $24,149,134
Undistributed net investment income...... 242,177 270,773 11,267 57,831 9,524
Accumulated net realized gain on
investments........................... 0 45,447 314,346 178,150 5,590,095
Unrealized appreciation of investments... 0 10,109 1,018,315 685,021 16,106,192
---------- ---------- ---------- ---------- -----------
Net assets................................. $3,613,860 $1,928,795 $2,874,538 $3,452,097 $45,854,945
========== ========== ========== ========== ===========
Number of units outstanding*............... 268,258 118,986 87,730 120,183 1,084,412
---------- ---------- ---------- ---------- -----------
Net asset value per unit outstanding*...... $ 13.47 $ 16.21 $ 32.77 $ 28.72 $ 42.29
========== ========== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
40
<PAGE> 43
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<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................... $ 0 $ 2,178 $ 0 $ 0 $ 0 $ 4,930,553 $ 0
Mortality and expense risk charges
(Note 3)........................ 12,700 14,747 400,003 617,564 22,534 1,233,069 135,450
-------- -------- ---------- ----------- -------- -------- ----------
Net investment income (loss)...... (12,700) (12,569) (400,003) (617,564) (22,534) 3,697,484 (135,450)
-------- -------- ---------- ----------- -------- -------- ----------
Realized and unrealized gain
(loss) on investments (Note 2):
Proceeds from sales............. 323,602 222,589 6,915,527 17,292,805 337,677 570,512,563 4,068,390
Cost of shares sold............. 231,583 141,068 7,240,566 17,146,740 259,049 570,512,563 3,976,024
-------- -------- ---------- ----------- -------- -------- ----------
Net realized gain (loss) on
investments..................... 92,019 81,521 (325,039) 146,065 78,628 0 92,366
Net increase (decrease) in
unrealized appreciation of
investments..................... 101,576 130,528 1,497,596 (365,732) 166,348 0 360,512
-------- -------- ---------- ----------- -------- -------- ----------
Net realized and unrealized gain
(loss) on investments........... 193,595 212,049 1,172,557 (219,667) 244,976 0 452,878
-------- -------- ---------- ----------- -------- -------- ----------
Net increase (decrease) in net
assets resulting from
operations...................... $180,895 $199,480 $ 772,554 $ (837,231) $222,442 $ 3,697,484 $ 317,428
======== ======== ========== =========== ======== ======== ==========
</TABLE>
See notes to financial statements.
41
<PAGE> 44
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<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........................... $ 3,532,905 $ 2,721,130 $ 16,381,358 $ 162,526 $1,877,009
Mortality and expense risk charges (Note
3)...................................... 2,542,387 1,957,838 17,470,312 386,302 271,709
----------- ----------- ------------ ---------- ----------
Net investment income (loss).............. 990,518 763,292 (1,088,954) (223,776) 1,605,300
----------- ----------- ------------ ---------- ----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales..................... 40,016,641 39,047,589 230,002,101 5,484,621 5,154,473
Cost of shares sold..................... 26,952,562 37,030,602 151,775,225 4,592,854 5,000,711
----------- ----------- ------------ ---------- ----------
Net realized gain on investments.......... 13,064,079 2,016,987 78,226,876 891,767 153,762
Net increase in unrealized appreciation of
investments............................. 28,297,136 11,474,221 198,383,114 2,753,189 860,925
----------- ----------- ------------ ---------- ----------
Net realized and unrealized gain on
investments............................. 41,361,215 13,491,208 276,609,990 3,644,956 1,014,687
----------- ----------- ------------ ---------- ----------
Net increase in net assets resulting from
operations.............................. $42,351,733 $14,254,500 $275,521,036 $ 3,421,180 $2,619,987
=========== =========== ============ ========== ==========
</TABLE>
See notes to financial statements.
42
<PAGE> 45
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Dividend income................................. $ 130,637 $ 143,533 $ 78,927 $134,757 $ 998,617
Mortality and expense risk charges (Note 3)..... 37,073 25,022 35,709 40,593 571,085
---------- --------- -------- ----------- ----------
Net investment income........................... 93,564 118,511 43,218 94,164 427,532
---------- --------- -------- ----------- ----------
Realized and unrealized gain on investments
(Note 2):
Proceeds from sales........................... 5,337,241 275,880 676,647 914,072 13,020,756
Cost of shares sold........................... 5,337,241 268,288 474,931 790,006 8,794,354
---------- --------- -------- ----------- ----------
Net realized gains on investments............... 0 7,592 201,716 124,066 4,226,402
Net increase (decrease) in unrealized
appreciation of investments................... 0 (105,165) 300,028 287,148 4,119,101
---------- --------- -------- ----------- ----------
Net realized and unrealized gain (loss) on
investments................................... 0 (97,573) 501,744 411,214 8,345,503
---------- --------- -------- ----------- ----------
Net increase in net assets resulting from
operations.................................... $ 93,564 $ 20,938 $544,962 $505,378 $ 8,773,035
========== ========= ======== ============ ==========
</TABLE>
See notes to financial statements.
43
<PAGE> 46
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ----------------------- -------------------------
1996 1995 1996 1995 1996 1995
---------- --------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).................... $ (12,700) $ 51,329 $ (12,569) $ 44,918 $ (400,003) $ 1,359,836
Net realized gain (loss) on investments......... 92,019 89,373 81,521 39,661 (325,039) (217,729)
Net increase (decrease) in unrealized
appreciation of investments................... 101,576 113,737 130,528 211,754 1,497,596 2,334,874
---------- --------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................. 180,895 254,439 199,480 296,333 772,554 3,476,981
---------- --------- ---------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units......... 173,420 19,737 84,957 25,913 7,367,531 6,168,848
Net asset value of units redeemed or used to
meet contract obligations..................... (208,218) (248,505) (144,895) (163,157) (5,502,520) (5,230,269)
---------- --------- ---------- ---------- ----------- -----------
Net increase (decrease) from unit transactions.... (34,798) (228,768) (59,938) (137,244) 1,865,011 938,579
---------- --------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets............. 146,097 25,671 139,542 159,089 2,637,565 4,415,560
Net assets beginning of year...................... 968,409 942,738 1,134,112 975,023 30,626,426 26,210,866
---------- --------- ---------- ---------- ----------- -----------
Net assets end of year*........................... $1,114,506 $ 968,409 $1,273,654 $1,134,112 $33,263,991 $30,626,426
========== ========== ============= ============= =========== ==========
Units outstanding beginning of year............... 37,368 46,927 45,391 51,336 1,806,518 1,753,781
Units issued during the year...................... 6,064 874 3,083 1,242 435,583 382,452
Units redeemed during the year.................... (7,399) (10,433) (5,385) (7,187) (326,051) (329,715)
---------- --------- ---------- ---------- ----------- -----------
Units outstanding end of year..................... 36,033 37,368 43,089 45,391 1,916,050 1,806,518
========== ========== ============= ============= =========== ==========
- ---------------
*Includes undistributed net investment income
of:.............................................. $ 139,622 $ 152,322 $ 388,516 $ 401,085 $ 4,544,173 $ 4,944,176
<CAPTION>
LONG TERM BOND
SUBACCOUNT
--------------------------
1996 1995
------------ -----------
<S> <C> <C>
From operations:
Net investment income (loss).................... $ (A17,564) $ 2,243,045
Net realized gain (loss) on investments......... 146,065 (972,892)
Net increase (decrease) in unrealized
appreciation of investments................... (365,732) 9,104,767
------------ -----------
Net increase (decrease) in net assets resulting
from operations................................. (837,231) 10,374,920
------------ -----------
From unit transactions:
Net proceeds from the issuance of units......... 14,906,160 13,405,984
Net asset value of units redeemed or used to
meet contract obligations..................... (14,275,641) (8,681,500)
------------ -----------
Net increase (decrease) from unit transactions.... 630,519 4,724,484
------------ -----------
Net increase (decrease) in net assets............. (206,712) 15,099,404
Net assets beginning of year...................... 51,238,915 36,139,511
------------ -----------
Net assets end of year*........................... $ 51,032,203 $51,238,915
============ ===========
Units outstanding beginning of year............... 2,477,673 2,245,807
Units issued during the year...................... 761,674 714,746
Units redeemed during the year.................... (732,816) (482,880)
------------ -----------
Units outstanding end of year..................... 2,506,531 2,477,673
============ ===========
- ---------------
*Includes undistributed net investment income
of:.............................................. $ 8,542,345 $ 9,159,909
</TABLE>
See notes to financial statements.
44
<PAGE> 47
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
----------------------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ----------------------------- ------------------------
1996 1995 1996 1995 1996 1995
---------- ---------- ------------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............... $ (22,534) $ 73,868 $ 3,697,484 $ 2,866,329 $ (135,450) $ 194,429
Net realized gain on investments........... 78,628 59,009 0 0 92,366 93,069
Net increase (decrease) in unrealized
appreciation of investments............. 166,348 248,851 0 0 360,512 (2,911)
---------- ---------- ------------- ------------- ----------- ----------
Net increase in net assets resulting from
operations................................. 222,442 381,728 3,697,484 2,866,329 317,428 284,587
---------- ---------- ------------- ------------- ----------- ----------
From unit transactions:
Net proceeds from the issuance of units.... 108,458 73,106 579,470,083 387,429,226 9,252,639 7,481,232
Net asset value of units redeemed or used
to meet contract obligations............ (270,309) (223,895) (553,816,098) (370,351,387) (2,761,464) (465,806)
---------- ---------- ------------- ------------- ----------- ----------
Net increase (decrease) from unit
transactions............................... (161,851) (150,789) 25,653,985 17,077,839 6,491,175 7,015,426
---------- ---------- ------------- ------------- ----------- ----------
Net increase in net assets................... 60,591 230,939 29,351,469 19,944,168 6,808,603 7,300,013
Net assets beginning of year................. 1,806,327 1,575,388 91,287,195 71,343,027 7,474,168 174,155
---------- ---------- ------------- ------------- ----------- ----------
Net assets end of year*...................... $1,866,918 $1,806,327 $ 120,638,664 $ 91,287,195 $14,282,771 $7,474,168
========== ========== ============= ============= =========== ==========
Units outstanding beginning of year.......... 83,511 90,907 6,504,679 5,304,884 679,711 17,347
Units issued during the year................. 4,729 3,710 40,508,568 28,090,440 829,627 706,241
Units redeemed during the year............... (11,887) (11,106) (38,734,270) (26,890,645) (240,124) (43,877)
---------- ---------- ------------- ------------- ----------- ----------
Units outstanding end of year................ 76,353 83,511 8,278,977 6,504,679 1,269,214 679,711
========== ========== ============= ============= =========== ==========
- ---------------
*Includes undistributed net investment income
of:......................................... $ 607,906 $ 630,440 $ 10,868,048 $ 7,170,564 $ 59,807 $ 195,257
</TABLE>
See notes to financial statements.
45
<PAGE> 48
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------------------------------------------------------
1996 1995 1996 1995 1996
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................ $ 990,518 $ 6,291,238 $ 763,292 $ 7,046,795 $ (1,088,954)
Net realized gain on investments.................... 13,064,079 4,120,247 2,016,987 271,832 78,226,876
Net increase in unrealized appreciation of
investments....................................... 28,297,136 21,768,708 11,474,221 6,498,712 198,383,114
------------ ------------ ------------ ------------ --------------
Net increase in net assets resulting from
operations.......................................... 42,351,733 32,180,193 14,254,500 13,817,339 275,521,036
------------ ------------ ------------ ------------ --------------
From unit transactions:
Net proceeds from the issuance of units............. 115,219,042 51,339,101 41,715,641 35,366,448 496,311,902
Net asset value of units redeemed or used to meet
contract obligations.............................. (30,630,812) (13,768,394) (33,868,192) (31,951,502) (192,035,547)
------------ ------------ ------------ ------------ --------------
Net increase from unit transactions.................. 84,588,230 37,570,707 7,847,449 3,414,946 304,276,355
------------ ------------ ------------ ------------ --------------
Net increase in net assets........................... 126,939,963 69,750,900 22,101,949 17,232,285 579,797,391
Net assets beginning of year......................... 145,529,920 75,779,020 145,993,789 128,761,504 1,109,112,619
------------ ------------ ------------ ------------ --------------
Net assets end of year*.............................. $272,469,883 $145,529,920 $168,095,738 $145,993,789 $1,688,910,010
============ ============ ============ ============ ==============
Units outstanding beginning of year.................. 5,426,511 3,865,965 6,055,472 5,924,266 31,540,233
Units issued during the year......................... 3,827,209 2,143,227 1,644,107 1,572,208 12,880,690
Units redeemed during the year....................... (1,041,493) (582,681) (1,353,126) (1,441,002) (5,049,542)
------------ ------------ ------------ ------------ --------------
Units outstanding end of year........................ 8,212,227 5,426,511 6,346,453 6,055,472 39,371,381
============ ============ ============ ============ ==============
- ---------------
*Includes undistributed net investment income of:.... $ 9,206,890 $ 8,216,372 $ 15,143,700 $ 14,380,408 $ 84,475,226
<CAPTION>
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
------------------------- -------------------------
1995 1996 1995 1996 1995
-------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................ $ 60,081,056 $ (223,776) $ 681,622 $ 1,605,300 $ 523,281
Net realized gain on investments.................... 28,817,432 891,767 188,071 153,762 98,234
Net increase in unrealized appreciation of
investments....................................... 206,163,963 2,753,189 765,785 860,925 142,908
-------------- ----------- ----------- ----------- -----------
Net increase in net assets resulting from
operations.......................................... 295,062,451 3,421,180 1,635,478 2,619,987 764,423
-------------- ----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units............. 304,419,702 28,954,972 14,604,230 17,522,375 13,314,491
Net asset value of units redeemed or used to meet
contract obligations.............................. (94,036,492) (3,642,450) (1,955,796) (3,512,778) (562,893)
-------------- ----------- ----------- ----------- -----------
Net increase from unit transactions.................. 210,383,210 25,312,522 12,648,434 14,009,597 12,751,598
-------------- ----------- ----------- ----------- -----------
Net increase in net assets........................... 505,445,661 28,733,702 14,283,912 16,629,584 13,516,021
Net assets beginning of year......................... 603,666,958 16,346,562 2,062,650 13,786,083 270,062
-------------- ----------- ----------- ----------- -----------
Net assets end of year*.............................. $1,109,112,619 $45,080,264 $16,346,562 $30,415,667 $13,786,083
============== =========== =========== =========== ===========
Units outstanding beginning of year.................. 24,924,610 1,456,982 208,202 1,194,315 26,870
Units issued during the year......................... 9,733,146 2,462,266 1,442,749 1,460,685 1,218,090
Units redeemed during the year....................... (3,117,523) (308,325) (193,969) (293,290) (50,645)
-------------- ----------- ----------- ----------- -----------
Units outstanding end of year........................ 31,540,233 3,610,923 1,456,982 2,361,710 1,194,315
============== =========== =========== =========== ===========
- ---------------
*Includes undistributed net investment income of:.... $ 85,564,180 $ 456,622 $ 680,398 $ 2,129,990 $ 524,690
</TABLE>
See notes to financial statements.
46
<PAGE> 49
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
----------------------------------------------------
MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT
------------------------- ------------------------
1996 1995 1996 1995
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)...................................... $ 93,564 $ 124,149 $ 118,511 $ 111,291
Net realized gain on investments.................................. 0 0 7,592 40,021
Net increase (decrease) in unrealized appreciation of
investments..................................................... 0 0 (105,165) 174,324
----------- ----------- ---------- -----------
Net increase in net assets resulting from operations............... 93,564 124,149 20,938 325,636
----------- ----------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of units........................... 4,333,584 3,607,557 85,477 213,153
Net asset value of units redeemed or used to meet contract
obligations..................................................... (4,350,827) (3,138,264) (250,849) (1,262,489)
----------- ----------- ---------- -----------
Net increase (decrease) from unit transactions..................... (17,243) 469,293 (165,372) (1,049,336)
----------- ----------- ---------- -----------
Net increase (decrease) in net assets.............................. 76,321 593,442 (144,434) (723,700)
Net assets beginning of year....................................... 3,537,539 2,944,097 2,073,229 2,796,929
----------- ----------- ---------- -----------
Net assets end of year*............................................ $ 3,613,860 $ 3,537,539 $1,928,795 $ 2,073,229
=========== =========== =========== ===========
Units outstanding beginning of year................................ 271,019 234,062 129,078 198,239
Units issued during the year....................................... 326,685 282,367 5,293 13,880
Units redeemed during the year..................................... (329,446) (245,410) (15,385) (83,041)
----------- ----------- ---------- -----------
Units outstanding end of year...................................... 268,258 271,019 118,986 129,078
=========== =========== =========== ===========
- ---------------
*Includes undistributed net investment income (loss) of:........... $ 242,177 $ 148,613 $ 270,773 $ 152,262
<CAPTION>
EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT
----------------------- ------------------------
1995 1995 1996 1995
---------- ---------- ---------- -----------
<S> <C> <C>
From operations:
Net investment income (loss)...................................... $ 43,218 $ (22,728) $ 94,164 $ (21,366)
Net realized gain on investments.................................. 201,716 113,896 124,066 56,532
Net increase (decrease) in unrealized appreciation of
investments..................................................... 300,028 780,175 287,148 420,585
---------- ---------- ---------- -----------
Net increase in net assets resulting from operations............... 544,962 871,343 505,378 455,751
---------- ---------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of units........................... 90,651 122,424 454,923 185,178
Net asset value of units redeemed or used to meet contract
obligations..................................................... (615,503) (680,113) (857,279) (1,530,650)
---------- ---------- ---------- -----------
Net increase (decrease) from unit transactions..................... (524,852) (557,689) (402,356) (1,345,472)
---------- ---------- ---------- -----------
Net increase (decrease) in net assets.............................. 20,110 313,654 103,022 (889,721)
Net assets beginning of year....................................... 2,854,428 2,540,774 3,349,075 4,238,796
---------- ---------- ---------- -----------
Net assets end of year*............................................ $2,874,538 $2,854,428 $3,452,097 $ 3,349,075
=========== =========== =========== ===========
Units outstanding beginning of year................................ 106,172 129,693 136,744 197,050
Units issued during the year....................................... 2,767 5,049 17,388 7,680
Units redeemed during the year..................................... (21,209) (28,570) (33,949) (67,986)
---------- ---------- ---------- -----------
Units outstanding end of year...................................... 87,730 106,172 120,183 136,744
=========== =========== =========== ===========
- ---------------
*Includes undistributed net investment income (loss) of:........... $ 11,267 $ (31,951) $ 57,831 $ (36,333)
<CAPTION>
MANAGED
SUBACCOUNT
--------------------------
1996 1995
------------ -----------
From operations:
Net investment income (loss)...................................... $ 427,532 $ (288,781)
Net realized gain on investments.................................. 4,226,402 1,385,119
Net increase (decrease) in unrealized appreciation of
investments..................................................... 4,119,101 13,614,561
------------ -----------
Net increase in net assets resulting from operations............... 8,773,035 14,710,899
------------ -----------
From unit transactions:
Net proceeds from the issuance of units........................... 4,110,996 2,329,894
Net asset value of units redeemed or used to meet contract
obligations..................................................... (11,872,383) (7,328,456)
------------ -----------
Net increase (decrease) from unit transactions..................... (7,761,387) (4,998,562)
------------ -----------
Net increase (decrease) in net assets.............................. 1,011,648 9,712,337
Net assets beginning of year....................................... 44,843,297 35,130,960
------------ -----------
Net assets end of year*............................................ $ 45,854,945 $44,843,297
============= ============
Units outstanding beginning of year................................ 1,286,294 1,449,807
Units issued during the year....................................... 113,806 79,150
Units redeemed during the year..................................... (315,688) (242,663)
------------ -----------
Units outstanding end of year...................................... 1,084,412 1,286,294
============= ============
- ---------------
*Includes undistributed net investment income (loss) of:........... $ 9,524 $ (418,008)
</TABLE>
See notes to financial statements.
47
<PAGE> 50
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 OCC
Accumulation Trust ("OCC") (formerly known as Quest for Value Accumulation
Trust) (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 OCC are contained on pages 66 to 98; 100 to 133; and
135 to 157; 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 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 Portfolios,
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 owner 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 for all subaccounts for 1996 was $1,746,828.
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.
48
<PAGE> 51
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investment In MONY Series Fund, Inc. at cost, at December 31, 1996 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................. 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
--------- --------- ----------- ------------ ---------- ------------- -----------
Shares acquired:
Shares................. 10,049 6,838 789,124 1,410,229 9,061 594,933,479 1,013,344
Amount................. $ 276,104 $ 147,904 $ 8,380,535 $ 17,305,760 $ 153,292 $ 594,933,479 $10,424,115
Shares received for
reinvestment of
dividends:
Shares................. 0 105 0 0 0 4,930,553 0
Amount................. $ 0 $ 2,178 $ 0 $ 0 $ 0 $ 4,930,553 $ 0
Shares redeemed:
Shares................. (11,918) (10,440) (651,575) (1,413,935) (20,192) (570,512,563) (395,410)
Amount................. $(231,583) $(141,068) $(7,240,566) $(17,146,740) $ (259,049) $(570,512,563) $(3,976,024)
--------- --------- ----------- ------------ ---------- ------------- -----------
Net change:
Shares................. (1,869) (3,497) 137,549 (3,706) (11,131) 29,351,469 617,934
Amount................. $ 44,521 $ 9,014 $ 1,139,969 $ 159,020 $ (105,757) $ 29,351,469 $6,448,091
--------- --------- ----------- ------------ ---------- ------------- -----------
Shares end of year:
Shares................. 36,697 54,336 3,035,035 3,974,470 103,775 120,638,664 1,349,979
Amount................. $ 827,651 $ 893,812 $31,870,045 $ 47,687,932 $ 1,420,468 $ 120,638,664 $13,926,074
========= ========= =========== ============ ========== ============= ===========
</TABLE>
49
<PAGE> 52
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investment in Enterprise Accumulation Trust at cost, at December 31, 1996
consist 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................................... 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
------------ ------------ ------------- ----------- ------------
Shares acquired:
Shares................................... 4,628,919 2,296,798 16,703,164 5,350,996 3,540,890
Amount................................... $122,062,484 $ 44,937,200 $ 516,808,144 $30,410,841 $18,892,361
Shares received for reinvestment of
dividends:
Shares................................... 122,415 134,576 477,451 26,863 350,391
Amount................................... $ 3,532,905 $ 2,721,130 $ 16,381,358 $ 162,526 $ 1,877,009
Shares redeemed:
Shares................................... (1,542,788) (2,018,131) (7,482,072) (959,333) (967,445)
Amount................................... $(26,952,562) $(37,030,602) $ (151,775,225) $(4,592,854) $(5,000,711)
------------ ------------ ------------- ----------- ------------
Net change:
Shares................................... 3,208,546 413,243 9,698,543 4,418,526 2,923,836
Amount................................... $ 98,642,827 $ 10,627,728 $ 381,414,277 $25,980,513 $15,768,659
------------ ------------ ------------- ----------- ------------
Shares end of year:
Shares................................... 9,441,091 8,313,340 49,225,009 7,451,283 5,520,085
Amount................................... $219,775,741 $149,844,309 $1,278,396,527 $41,542,065 $29,411,432
============ ============ ============= =========== ============
</TABLE>
Investment in OCC Accumulation Trust at cost, at December 31, 1996 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..................................... 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
----------- ---------- ---------- ---------- -----------
Shares acquired:
Shares..................................... 5,284,304 10,775 4,158 22,777 149,632
Amount..................................... $ 5,284,304 $ 86,256 $ 116,086 $ 471,123 $ 4,688,284
Shares received for reinvestment of
dividends:
Shares..................................... 130,637 13,344 3,063 6,861 32,307
Amount..................................... $ 130,637 $ 143,533 $ 78,927 $ 134,757 $ 998,617
Shares redeemed:
Shares..................................... (5,337,241) (28,541) (25,575) (45,169) (403,411)
Amount..................................... $(5,337,241) $ (268,288) $ (474,931) $ (790,006) $(8,794,354)
----------- ---------- ---------- ---------- -----------
Net change:
Shares..................................... 77,700 (4,422) (18,354) (15,531) (221,472)
Amount..................................... $ 77,700 $ (38,499) $ (279,918) $ (184,126) $(3,107,453)
----------- ---------- ---------- ---------- -----------
Shares end of year:
Shares..................................... 3,613,860 203,032 95,595 152,680 1,266,361
Amount..................................... $ 3,613,860 $1,918,686 $1,856,223 $2,767,076 $29,748,753
=========== ========== ========== ========== ===========
</TABLE>
50
<PAGE> 53
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, International Growth and High
Yield Bond Subaccounts; and the OCC Accumulation Trust's (formerly, the Quest
for Value Accumulation Trust), Money Market, Bond, Equity, Small Cap, and
Managed Subaccounts) as of December 31, 1996, 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, 1996, 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,
1996, 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 14, 1997
51
<PAGE> 54
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<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 4).... $146,407 $175,761 $6,220,549 $ 9,624,486 $151,866 $19,709,665 $1,767,192
======== ======== ========== =========== ======== =========== ==========
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)............................ $247,389 $270,607 $6,491,557 $10,334,042 $180,006 $19,709,665 $1,814,770
Amount due from MONY............ 0 0 121 193 0 154,428 168
Amount due from MONY Series
Fund, Inc..................... 11 0 30 35 8 78,205 0
-------- -------- ---------- ----------- -------- ----------- ----------
Total assets........... 247,400 270,607 6,491,708 10,334,270 180,014 19,942,298 1,814,938
-------- -------- ---------- ----------- -------- ----------- ----------
LIABILITIES
Amount due to MONY.............. 11 0 30 35 8 78,205 0
Amount due to MONY Series Fund,
Inc........................... 0 0 121 193 0 154,428 168
-------- -------- ---------- ----------- -------- ----------- ----------
Total liabilities...... 11 0 151 228 8 232,633 168
-------- -------- ---------- ----------- -------- ----------- ----------
Net assets...................... $247,389 $270,607 $6,491,557 $10,334,042 $180,006 $19,709,665 $1,814,770
======== ======== ========== =========== ======== =========== ==========
Net assets consist of:
Contractholders' net
payments.................... $ 64,005 $ 19,638 $4,951,377 $ 7,186,418 $(33,744) $17,600,536 $1,746,909
Undistributed net investment
income...................... 29,624 97,603 1,263,391 2,176,038 97,012 2,109,129 7,149
Accumulated net realized gain
on investments.............. 52,778 58,520 5,781 262,030 88,598 0 13,134
Unrealized appreciation of
investments................. 100,982 94,846 271,008 709,556 28,140 0 47,578
-------- -------- ---------- ----------- -------- ----------- ----------
Net assets...................... $247,389 $270,607 $6,491,557 $10,334,042 $180,006 $19,709,665 $1,814,770
======== ======== ========== =========== ======== =========== ==========
Number of units outstanding*.... 7,976 9,465 381,313 503,775 7,590 1,355,274 162,102
-------- -------- ---------- ----------- -------- ----------- ----------
Net asset value per unit
outstanding*.................. $ 31.02 $ 28.59 $ 17.02 $ 20.51 $ 23.72 $ 14.54 $ 11.20
======== ======== ========== =========== ======== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
52
<PAGE> 55
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<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 4).............. $29,460,211 $19,845,374 $165,506,442 $ 5,439,421 $3,093,095
=========== =========== ============ ========== ==========
Investments in Enterprise Accumulation
Trust at net asset value (Note 2)....... $37,267,237 $22,140,377 $220,849,725 $ 5,901,118 $3,189,944
Amount due from MONY...................... 17,906 3,133 67,101 572 0
Amount due from Enterprise Accumulation
Trust................................... 217 2,762 34,621 6,450 3
----------- ----------- ------------ ---------- ----------
Total assets.................... 37,285,360 22,146,272 220,951,447 5,908,140 3,189,947
----------- ----------- ------------ ---------- ----------
LIABILITIES
Amount due to MONY........................ 217 2,762 34,621 6,450 3
Amount due to Enterprise Accumulation
Trust................................... 17,906 3,133 67,101 572 0
----------- ----------- ------------ ---------- ----------
Total liabilities............... 18,123 5,895 101,722 7,022 3
=========== =========== ============ ========== ==========
Net assets................................ $37,267,237 $22,140,377 $220,849,725 $ 5,901,118 $3,189,944
=========== =========== ============ ========== ==========
Net assets consist of:
Contractholders' net payments........... $24,273,607 $16,695,775 $128,711,842 $ 5,275,664 $2,888,368
Undistributed net investment income..... 1,466,211 1,934,785 12,602,136 52,518 184,463
Accumulated net realized gain on
investments.......................... 3,720,393 1,214,814 24,192,464 111,239 20,264
Unrealized appreciation of
investments.......................... 7,807,026 2,295,003 55,343,283 461,697 96,849
----------- ----------- ------------ ---------- ----------
Net assets................................ $37,267,237 $22,140,377 $220,849,725 $ 5,901,118 $3,189,944
=========== =========== ============ ========== ==========
Number of units outstanding*.............. 1,123,086 837,807 5,150,485 472,752 247,295
----------- ----------- ------------ ---------- ----------
Net asset value per unit outstanding*..... $ 33.18 $ 26.43 $ 42.88 $ 12.48 $ 12.90
=========== =========== ============ ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
53
<PAGE> 56
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
OCC 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 4)..................... $443,785 $565,925 $246,057 $264,999 $ 7,539,103
======== ======== ======== ======== ===========
Investments in OCC Accumulation Trust at net
asset value (Note 2)........................... $443,785 $569,120 $370,443 $340,536 $12,043,728
-------- -------- -------- -------- -----------
Net assets....................................... $443,785 $569,120 $370,443 $340,536 $12,043,728
======== ======== ======== ======== ===========
Net assets consist of:
Contractholders' net payments.................. $408,497 $467,993 $233,016 $229,281 $ 6,749,689
Undistributed/accumulated net investment income
(loss)...................................... 35,288 94,635 1,235 11,752 (968)
Accumulated net realized gain on investments... 0 3,297 11,806 23,966 790,382
Unrealized appreciation of investments......... 0 3,195 124,386 75,537 4,504,625
-------- -------- -------- -------- -----------
Net assets....................................... $443,785 $569,120 $370,443 $340,536 $12,043,728
======== ======== ======== ======== ===========
Number of units outstanding*..................... 33,041 35,119 11,304 11,883 284,927
======== ======== ======== ======== ===========
Net asset value per unit outstanding*............ $ 13.43 $ 16.21 $ 32.77 $ 28.66 $ 42.27
======== ======== ======== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
54
<PAGE> 57
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<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.................. $ 0 $ 494 $ 0 $ 0 $ 0 $ 864,440 $ 0
Mortality and expense risk
charges (Note 3)............... 2,869 3,249 83,249 124,623 3,484 216,165 17,809
------- ------- ---------- ---------- -------- ----------- --------
Net investment income (loss)..... (2,869) (2,755) (83,249) (124,623) (3,484) 648,275 (17,809)
------- ------- ---------- ---------- -------- ----------- --------
Realized and unrealized gain
(loss) on investments (Note 2):
Proceeds from sales............ 6,072 26,215 2,973,676 2,919,071 185,051 73,953,662 712,090
Cost of shares sold............ 2,832 16,191 3,040,176 3,033,049 143,262 73,953,662 712,552
------- ------- ---------- ---------- -------- ----------- --------
Net realized gain (loss) on
investments.................... 3,240 10,024 (66,500) (113,978) 41,789 0 (462)
Net increase (decrease) in
unrealized appreciation of
investments.................... 40,185 35,971 287,901 58,274 (9,570) 0 57,310
------- ------- ---------- ---------- -------- ----------- --------
Net realized and unrealized gain
(loss) on investments.......... 43,425 45,995 221,401 (55,704) 32,219 0 56,848
------- ------- ---------- ---------- -------- ----------- --------
Net increase (decrease) in net
assets resulting from
operations..................... $ 40,556 $ 43,240 $ 138,152 $ (180,327) $ 28,735 $ 648,275 $ 39,039
======= ======= ========== ========== ======== =========== ========
</TABLE>
See notes to financial statements.
55
<PAGE> 58
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<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................................... $ 482,765 $ 358,525 $ 2,141,879 $ 21,339 $164,550
Mortality and expense risk charges (Note 3)....... 355,573 259,870 2,301,531 49,699 23,647
---------- ---------- ----------- -------- --------
Net investment income (loss)...................... 127,192 98,655 (159,652) (28,360) 140,903
---------- ---------- ----------- -------- --------
Realized and unrealized gain on investments (Note
2):
Proceeds from sales............................. 5,488,881 5,215,662 31,137,079 621,966 596,389
Cost of shares sold............................. 3,642,989 4,892,882 20,536,112 527,867 585,639
---------- ---------- ----------- -------- --------
Net realized gain on investments.................. 1,845,892 322,780 10,600,967 94,099 10,750
Net increase in unrealized appreciation of
investments..................................... 3,936,924 1,442,596 25,728,772 382,690 84,387
---------- ---------- ----------- -------- --------
Net realized and unrealized gain on investments... 5,782,816 1,765,376 36,329,739 476,789 95,137
---------- ---------- ----------- -------- --------
Net increase in net assets resulting from
operations...................................... $5,910,008 $1,864,031 $36,170,087 $ 448,429 $236,040
========== ========== =========== ======== ========
</TABLE>
See notes to financial statements.
56
<PAGE> 59
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
--------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income...................................... $ 19,562 $ 50,966 $ 8,381 $ 20,174 $ 247,649
Mortality and expense risk charges (Note 3).......... 5,557 8,504 4,195 4,215 149,713
---------- ---------- ---------- ---------- ----------
Net investment income................................ 14,005 42,462 4,186 15,959 97,936
---------- ---------- ---------- ---------- ----------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales................................ 40,765 279,505 21,332 180,861 1,919,534
Cost of shares sold................................ 40,765 279,691 13,598 160,666 1,224,282
---------- ---------- ---------- ---------- ----------
Net realized gain (loss) on investments.............. 0 (186) 7,734 20,195 695,252
Net increase (decrease) in unrealized appreciation of
investments........................................ 0 (44,748) 54,162 17,666 1,520,888
---------- ---------- ---------- ---------- ----------
Net realized and unrealized gain (loss) on
investments........................................ 0 (44,934) 61,896 37,861 2,216,140
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting from
operations......................................... $ 14,005 $ (2,472) $ 66,082 $ 53,820 $2,314,076
========== ========== ========== ========== ==========
</TABLE>
See notes to financial statements.
57
<PAGE> 60
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ----------
1996 1995 1996 1995 1996
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............................................. $ (2,869) $ 11,524 $ (2,755) $ 9,964 $ (83,249)
Net realized gain (loss) on investments.................................. 3,240 6,495 10,024 9,575 (66,500)
Net increase in unrealized appreciation of investments................... 40,185 27,822 35,971 43,846 287,901
-------- -------- -------- -------- ----------
Net increase (decrease) in net assets resulting from operations............ 40,556 45,841 43,240 63,385 138,152
-------- -------- -------- -------- ----------
From unit transactions:
Net proceeds from the issuance of units.................................. 0 14,140 521 0 2,126,818
Net asset value of units redeemed or used to meet contract obligations... (3,203) (13,354) (22,959) (41,390) (2,394,742)
-------- -------- -------- -------- ----------
Net increase (decrease) from unit transactions............................. (3,203) 786 (22,438) (41,390) (267,924)
-------- -------- -------- -------- ----------
Net increase (decrease) in net assets...................................... 37,353 46,627 20,802 21,995 (129,772)
Net assets beginning of year............................................... 210,036 163,409 249,805 227,810 6,621,329
-------- -------- -------- -------- ----------
Net assets end of year*.................................................... $247,389 $210,036 $270,607 $249,805 $6,491,557
======== ======== ======== ======== =========
Units outstanding beginning of year........................................ 8,091 8,121 10,336 12,401 398,283
Units issued during the year............................................... 0 602 20 0 128,432
Units redeemed during the year............................................. (115) (632) (891) (2,065) (145,402)
-------- -------- -------- -------- ----------
Units outstanding end of year.............................................. 7,976 8,091 9,465 10,336 381,313
======== ======== ======== ======== =========
- ---------------
*Includes undistributed net investment income of: $ 29,624 $ 32,493 $ 97,603 $100,358 $1,263,391
<CAPTION>
LONG TERM BOND
SUBACCOUNT
-------------------------
1995 1996 1995
---------- ----------- -----------
<S> <C> <C> <C>
From operations:
Net investment income (loss)............................................. $ 292,565 $ (124,623) $ 446,952
Net realized gain (loss) on investments.................................. (25,477) (113,978) (2,381)
Net increase in unrealized appreciation of investments................... 502,043 58,274 1,758,079
---------- ----------- -----------
Net increase (decrease) in net assets resulting from operations............ 769,131 (180,327) 2,202,650
---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units.................................. 1,002,924 2,785,899 1,593,024
Net asset value of units redeemed or used to meet contract obligations... (993,119) (2,589,305) (1,201,141)
---------- ----------- -----------
Net increase (decrease) from unit transactions............................. 9,805 196,594 391,883
---------- ----------- -----------
Net increase (decrease) in net assets...................................... 778,936 16,267 2,594,533
Net assets beginning of year............................................... 5,842,393 10,317,775 7,723,242
---------- ----------- -----------
Net assets end of year*.................................................... $6,621,329 $10,334,042 $10,317,775
========= ========== ==========
Units outstanding beginning of year........................................ 398,645 495,169 476,335
Units issued during the year............................................... 62,985 139,629 86,051
Units redeemed during the year............................................. (63,347) (131,023) (67,217)
---------- ----------- -----------
Units outstanding end of year.............................................. 398,283 503,775 495,169
========= ========== ==========
- ---------------
*Includes undistributed net investment income of: $1,346,640 $ 2,176,038 $ 2,300,661
</TABLE>
See notes to financial statements.
58
<PAGE> 61
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------- ------------
1996 1995 1996
--------- --------- ------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)............................................................... $ (3,484) $ 9,883 $ 648,275
Net realized gain (loss) on investments.................................................... 41,789 19,241 0
Net increase (decrease) in unrealized appreciation of investments.......................... (9,570) 34,672 0
--------- --------- ------------
Net increase in net assets resulting from operations......................................... 28,735 63,796 648,275
--------- --------- ------------
From unit transactions:
Net proceeds from the issuance of units.................................................... 77,280 26,476 71,884,991
Net asset value of units redeemed or used to meet contract obligations..................... (180,942) (116,344) (70,019,648)
--------- --------- ------------
Net increase (decrease) from unit transactions............................................... (103,662) (89,868) 1,865,343
--------- --------- ------------
Net increase (decrease) in net assets........................................................ (74,927) (26,072) 2,513,618
Net assets beginning of year................................................................. 254,933 281,005 17,196,047
--------- --------- ------------
Net assets end of year*...................................................................... $ 180,006 $ 254,933 $ 19,709,665
======== ======== ===========
Units outstanding beginning of year.......................................................... 12,152 16,718 1,227,811
Units issued during the year................................................................. 3,635 1,375 5,032,568
Units redeemed during the year............................................................... (8,197) (5,941) (4,905,105)
--------- --------- ------------
Units outstanding end of year................................................................ 7,590 12,152 1,355,274
======== ======== ===========
- ---------------
*Includes undistributed net investment income of: $ 97,012 $ 100,496 $ 2,109,129
<CAPTION>
GOVERNMENT
SECURITIES
SUBACCOUNT
---------------------
1995 1996 1995
------------ ---------- --------
<S> <C> <C> <C>
From operations:
Net investment income (loss)............................................................... $ 534,253 $ (17,809) $ 24,828
Net realized gain (loss) on investments.................................................... 0 (462) 13,596
Net increase (decrease) in unrealized appreciation of investments.......................... 0 57,310 (9,571)
------------ ---------- --------
Net increase in net assets resulting from operations......................................... 534,253 39,039 28,853
------------ ---------- --------
From unit transactions:
Net proceeds from the issuance of units.................................................... 45,186,737 1,419,641 905,752
Net asset value of units redeemed or used to meet contract obligations..................... (40,234,100) (558,126) (46,064)
------------ ---------- --------
Net increase (decrease) from unit transactions............................................... 4,952,637 861,515 859,688
------------ ---------- --------
Net increase (decrease) in net assets........................................................ 5,486,890 900,554 888,541
Net assets beginning of year................................................................. 11,709,157 914,216 25,675
------------ ---------- --------
Net assets end of year*...................................................................... $ 17,196,047 $1,814,770 $914,216
=========== ========= ========
Units outstanding beginning of year.......................................................... 872,441 83,571 2,571
Units issued during the year................................................................. 3,284,314 129,566 85,300
Units redeemed during the year............................................................... (2,928,944) (51,035) (4,300)
------------ ---------- --------
Units outstanding end of year................................................................ 1,227,811 162,102 83,571
=========== ========= ========
- ---------------
*Includes undistributed net investment income of: $ 1,460,854 $ 7,149 $ 24,958
</TABLE>
See notes to financial statements.
59
<PAGE> 62
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------- ------------------------- ---------------------------
1996 1995 1996 1995 1996 1995
----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........... $ 127,192 $ 977,788 $ 98,655 $ 895,086 $ (159,652) $ 8,252,036
Net realized gain on investments....... 1,845,892 703,043 322,780 150,075 10,600,967 4,218,503
Net increase in unrealized appreciation
of investments....................... 3,936,924 3,414,730 1,442,596 785,984 25,728,772 28,860,483
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets resulting from
operations............................. 5,910,008 5,095,561 1,864,031 1,831,145 36,170,087 41,331,022
----------- ----------- ----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of
units................................ 13,430,622 5,740,714 5,146,904 4,091,027 59,678,401 35,331,913
Net asset value of units redeemed or
used to meet contract obligations.... (3,493,043) (2,181,404) (4,293,528) (2,597,244) (24,531,771) (12,561,716)
----------- ----------- ----------- ----------- ------------ ------------
Net increase from unit transactions...... 9,937,579 3,559,310 853,376 1,493,783 35,146,630 22,770,197
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets............... 15,847,587 8,654,871 2,717,407 3,324,928 71,316,717 64,101,219
Net assets beginning of year............. 21,419,650 12,764,779 19,422,970 16,098,042 149,533,008 85,431,789
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of year*.................. $37,267,237 $21,419,650 $22,140,377 $19,422,970 $220,849,725 $149,533,008
========== ========== ========== ========== =========== ===========
Units outstanding beginning of year...... 798,552 651,102 807,452 742,341 4,253,824 3,528,618
Units issued during the year............. 441,702 242,264 202,925 182,069 1,537,736 1,137,075
Units redeemed during the year........... (117,168) (94,814) (172,570) (116,958) (641,075) (411,869)
----------- ----------- ----------- ----------- ------------ ------------
Units outstanding end of year............ 1,123,086 798,552 837,807 807,452 5,150,485 4,253,824
========== ========== ========== ========== =========== ===========
- ---------------
*Includes undistributed net investment
income of:.............................. $ 1,466,211 $ 1,339,019 $ 1,934,785 $ 1,836,130 $ 12,602,136 $ 12,761,788
<CAPTION>
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
----------------------- -----------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........... $ (28,360) $ 81,000 $ 140,903 $ 42,638
Net realized gain on investments....... 94,099 17,598 10,750 9,514
Net increase in unrealized appreciation
of investments....................... 382,690 76,868 84,387 11,925
---------- ---------- ---------- ----------
Net increase in net assets resulting from
operations............................. 448,429 175,466 236,040 64,077
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units................................ 3,893,317 1,635,614 2,209,079 870,043
Net asset value of units redeemed or
used to meet contract obligations.... (314,849) (127,032) (323,040) (13,019)
---------- ---------- ---------- ----------
Net increase from unit transactions...... 3,578,468 1,508,582 1,886,039 857,024
---------- ---------- ---------- ----------
Net increase in net assets............... 4,026,897 1,684,048 2,122,079 921,101
Net assets beginning of year............. 1,874,221 190,173 1,067,865 146,764
---------- ---------- ---------- ----------
Net assets end of year*.................. $5,901,118 $1,874,221 $3,189,944 $1,067,865
========= ========= ========= =========
Units outstanding beginning of year...... 167,074 19,197 92,358 14,621
Units issued during the year............. 332,329 160,171 182,283 78,634
Units redeemed during the year........... (26,651) (12,294) (27,346) (897)
---------- ---------- ---------- ----------
Units outstanding end of year............ 472,752 167,074 247,295 92,358
========= ========= ========= =========
- ---------------
*Includes undistributed net investment
income of:.............................. $ 52,518 $ 80,878 $ 184,463 $ 43,560
</TABLE>
See notes to financial statements.
60
<PAGE> 63
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------- --------------------- -------------------
1996 1995 1996 1995 1996 1995
-------- --------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................... $ 14,005 $ 17,046 $ 42,462 $ 39,877 $ 4,186 $ (2,184)
Net realized gain (loss) on investments................ 0 0 (186) 3,624 7,734 4,084
Net increase (decrease) in unrealized
appreciation of investments.......................... 0 0 (44,748) 66,019 54,162 75,352
-------- --------- --------- --------- -------- --------
Net increase (decrease) in net assets
resulting from operations.............................. 14,005 17,046 (2,472) 109,520 66,082 77,252
-------- --------- --------- --------- -------- --------
From unit transactions:
Net proceeds from the issuance of units................ 19,197 416,556 15,468 4,079 22,903 29,438
Net asset value of units redeemed or
used to meet contract obligations.................... (27,513) (469,730) (276,029) (140,292) (12,801) (19,982)
-------- --------- --------- --------- -------- --------
Net increase (decrease) from unit transactions........... (8,316) (53,174) (260,561) (136,213) 10,102 9,456
-------- --------- --------- --------- -------- --------
Net increase (decrease) in net assets.................... 5,689 (36,128) (263,033) (26,693) 76,184 86,708
Net assets beginning of year............................. 438,096 474,224 832,153 858,846 294,259 207,551
-------- --------- --------- --------- -------- --------
Net assets end of year*.................................. $443,785 $ 438,096 $ 569,120 $ 832,153 $370,443 $294,259
======== ======== ======== ======== ======== ========
Units outstanding beginning of year...................... 33,665 37,816 51,825 60,890 10,944 10,593
Units issued during the year............................. 1,448 32,841 650 274 894 1,189
Units redeemed during the year........................... (2,072) (36,992) (17,356) (9,339) (534) (838)
-------- --------- --------- --------- -------- --------
Units outstanding end of year............................ 33,041 33,665 35,119 51,825 11,304 10,944
======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income (loss) of: $ 35,288 $ 21,283 $ 94,635 $ 52,173 $ 1,235 $ (2,951)
<CAPTION>
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
-------------------- -------------------------
1996 1995 1996 1995
--------- -------- ----------- -----------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................... $ 15,959 $ (2,938) $ 97,936 $ (70,749)
Net realized gain (loss) on investments................ 20,195 3,823 695,252 101,433
Net increase (decrease) in unrealized
appreciation of investments.......................... 17,666 58,016 1,520,888 3,336,819
--------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............................. 53,820 58,901 2,314,076 3,367,503
--------- -------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units................ 10,778 59,056 301,963 514,537
Net asset value of units redeemed or
used to meet contract obligations.................... (174,121) (60,028) (1,630,402) (465,075)
--------- -------- ----------- -----------
Net increase (decrease) from unit transactions........... (163,343) (972) (1,328,439) 49,462
--------- -------- ----------- -----------
Net increase (decrease) in net assets.................... (109,523) 57,929 985,637 3,416,965
Net assets beginning of year............................. 450,059 392,130 11,058,091 7,641,126
--------- -------- ----------- -----------
Net assets end of year*.................................. $ 340,536 $450,059 $12,043,728 $11,058,091
======== ======== ========== ==========
Units outstanding beginning of year...................... 18,419 18,271 317,313 315,452
Units issued during the year............................. 484 2,780 8,688 17,915
Units redeemed during the year........................... (7,020) (2,632) (41,074) (16,054)
--------- -------- ----------- -----------
Units outstanding end of year............................ 11,883 18,419 284,927 317,313
======== ======== ========== ==========
- ---------------
*Includes undistributed net investment income (loss) of: $ 11,752 $ (4,207) $ (968) $ (98,904)
</TABLE>
See notes to financial statements.
61
<PAGE> 64
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 OCC Accumulation
Trust ("OCC") (formerly the Quest for Value Accumulation Trust) 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 OCC are contained on pages 66 to 98; 100 to 133; and
135 to 157; 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 Portfolios,
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 owner 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 for all subaccounts for 1996 was $205,276.
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.
62
<PAGE> 65
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1996 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.................... 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
-------- -------- ----------- ---------- --------- ------------ -----------
Shares acquired:
Shares.................... 0 25 248,085 241,598 4,847 75,602,840 151,259
Amount.................... $ 0 $ 528 $ 2,622,503 $ 2,991,042 $ 77,905 $ 75,602,840 $1,555,796
Shares received for
reinvestment of dividends:
Shares.................... 0 24 0 0 0 864,440 0
Amount.................... $ 0 $ 494 $ 0 $ 0 $ 0 $ 864,440 $ 0
Shares redeemed:
Shares.................... (219) (1,243) (282,216) (237,836) (11,058) (73,953,662) (69,272)
Amount.................... $ (2,832) $ (16,191) $(3,040,176) $(3,033,049) $(143,262) $(73,953,662) $(712,552)
-------- -------- ----------- ---------- --------- ------------ -----------
Net change:
Shares.................... (219) (1,194) (34,131) 3,762 (6,211) 2,513,618 81,987
Amount.................... $ (2,832) $ (15,169) $ (417,673) $ (42,007) $ (65,357) $ 2,513,618 $ 843,244
-------- -------- ----------- ---------- --------- ------------ -----------
Shares end of year:
Shares.................... 8,146 11,545 592,296 804,831 10,006 19,709,665 171,528
Amount.................... $ 146,407 $ 175,761 $ 6,220,549 $ 9,624,486 $ 151,866 $ 19,709,665 $1,767,192
======== ======== =========== ========== ========= ============ ===========
</TABLE>
63
<PAGE> 66
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust, Inc. at cost, at December 31,
1996 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....................................... 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
----------- ----------- ------------ ---------- ----------
Shares acquired:
Shares....................................... 567,664 296,363 2,055,304 732,866 459,848
Amount....................................... $15,070,887 $ 5,809,168 $ 63,982,178 $ 4,150,735 $2,458,781
Shares received for reinvestment of dividends:
Shares....................................... 16,728 17,731 62,427 3,527 30,679
Amount....................................... $ 482,765 $ 358,525 $ 2,141,879 $ 21,339 $ 164,550
Shares redeemed:
Shares....................................... (210,410) (270,146) (1,009,885) (108,624) (112,694)
Amount....................................... $(3,642,989) $(4,892,882) $(20,536,112) $ (527,867) $ (585,639)
----------- ----------- ------------ ---------- ----------
Net change:
Shares....................................... 373,982 43,948 1,107,846 627,769 377,833
Amount....................................... $11,910,663 $ 1,274,811 $ 45,587,945 $ 3,644,207 $2,037,692
----------- ----------- ------------ ---------- ----------
Shares end of year:
Shares....................................... 1,291,312 1,094,975 6,436,891 975,391 578,938
Amount....................................... $29,460,211 $19,845,374 $165,506,442 $ 5,439,421 $3,093,095
=========== =========== ============ ========== ==========
</TABLE>
Investments in OCC Accumulation Trust, Inc. at cost, at December 31, 1996
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................................................ 437,924 83,268 11,747 22,605 366,891
Amount................................................ $ 437,924 $ 783,901 $ 224,035 $392,188 $ 8,074,354
-------- --------- -------- --------- -----------
Shares acquired:
Shares................................................ 27,064 1,048 979 615 13,865
Amount................................................ $ 27,064 $ 10,749 $ 27,239 $ 13,303 $ 441,382
Shares received for reinvestment of dividends:
Shares................................................ 19,562 5,346 325 1,027 8,012
Amount................................................ $ 19,562 $ 50,966 $ 8,381 $ 20,174 $ 247,649
Shares redeemed:
Shares................................................ (40,765) (29,754) (732) (9,186) (56,160)
Amount................................................ $ (40,765) $(279,691) $ (13,598) $(160,666) $(1,224,282)
-------- --------- -------- --------- -----------
Net change:
Shares................................................ 5,861 (23,360) 572 (7,544) (34,283)
Amount................................................ $ 5,861 $(217,976) $ 22,022 $(127,189) $ (535,251)
-------- --------- -------- --------- -----------
Shares end of year:
Shares................................................ 443,785 59,908 12,319 15,061 332,608
Amount................................................ $ 443,785 $ 565,925 $ 246,057 $264,999 $ 7,539,103
======== ========= ======== ========= ===========
</TABLE>
64
<PAGE> 67
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees 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, International Growth and High
Yield Bond Subaccounts; and the OCC Accumulation Trust's (formerly, the Quest
for Value Accumulation Trust) Money Market, Bond, Equity, Small Cap, and Managed
Subaccounts) as of December 31, 1996, 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, 1996, 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, 1996, 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 14, 1997
65
<PAGE> 68
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
The outlook is for a continuation of slow growth and not much pricing
power, and as a result, less certainty in the earnings outlook. In this kind of
environment, the growth portfolio will be emphasizing sectors and companies that
have earnings visibility. The earnings visibility can be the result of a change
in the supply/demand characteristics of the product in the case of the energy
sector. It can be caused by stronger growth overseas in the care of the
multinational growth stocks or individual company dynamics in technology.
The energy stocks have some defensive characteristics such as high yields
and stable, predictable earnings. The increased price of oil and rising
worldwide demand makes them offensive in either a slow U.S. economy, or one in
which domestic demand is increasing. International oils, oil service and
exploration companies are all being increased in weight. The multinational
growth stocks were strong in 1996 and thus are at high valuations, but the power
of established brands and products in overseas markets should keep earnings
growing even in a slower U.S. economy. Soft drinks, drugs, household products
and entertainment names are being emphasized. Finally, technology continues to
be a major overweight. These stocks also did well last year, but individual
company dynamics in a broad range of products and applications should continue
to provide above average earnings growth.
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 S&P 500 IN-
(FISCAL YEAR COVERED) FUND, INC. DEX
<S> <C> <C>
12/31/86 10000 10000
12/31/87 10895 10523
12/31/88 12205 12292
12/31/89 15967 16163
12/31/90 15736 15650
12/31/91 21190 20431
12/31/92 21012 21999
12/31/93 23062 24196
12/31/94 23552 24513
12/31/95 30747 33688
12/31/96 37188 41369
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
20.95% 11.89% 13.98%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
66
<PAGE> 69
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
The stock market has enjoyed two very strong years in a row. Everything has
gone right and expectations are high. At the same time, if slow growth
continues, earnings are at risk. In this environment a more cautious strategy
with an increased emphasis on defensive names seems appropriate. The Equity
Income Portfolio is by nature defensive to start with, increasing the less
volatile sectors can increase the downside protection.
There are several groups which could do well in both a slow growth or a
stronger economy, if that occurs. One is energy. The stocks began to strengthen
in the second half of 1996 as the oil price rose, and they finished the year
strong. Their high dividend yields, stable and predictable earnings and moderate
valuations make them defensive. In a stronger economy with increased demand for
energy, they should participate in the upturn. The international oils are an
overweight group in the Portfolio, and we have been adding to holdings of
natural gas pipelines and utilities.
The basic materials stocks also have high relative yields and low
valuations. After underperforming last year, expectations are also low. If the
U.S. or international economies should strengthen more than currently
anticipated, these very economic sensitive names would become offensive. The
capital goods stocks outperformed last year, but are not particularly extended
and could offer the same opportunity as the basic materials. Positions have been
slowly increased in aluminum, chemical, paper and forest products stocks.
The strategy is to continue to be relatively fully invested to respect the
power of the Portfolio inflows and not "fight the tape. "At the same time,
however, this strategy recognizes that the market has already had a substantial
move and may need to consolidate for awhile. Stocks with moderate valuations and
low investor expectations could enhance the Portfolio's ability to ride out any
correction.
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 S&P 500 IN-
(FISCAL YEAR COVERED) FUND, INC. DEX
<S> <C> <C>
12/31/86 10000 10000
12/31/87 10752 10523
12/31/88 12844 12292
12/31/89 15722 16163
12/31/90 14664 15650
12/31/91 17643 20431
12/31/92 19463 21999
12/31/93 22214 24196
12/31/94 22390 24513
12/31/95 29801 33688
12/31/96 35690 41369
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
19.76% 15.13% 13.46%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
67
<PAGE> 70
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 maintained an average maturity of 4.89 years as of December
31, 1996.
For the quarter ended December 31, 1996, the Portfolio earned a total
return of 2.33%, posting a one year total return of 3.69%. For the five and ten
year periods ending December 31, 1996, the Portfolio earned an average annual
total return of 6.21% and 7.07%, respectively.
The bond market continued to rally in the last quarter of 1996, thereby
improving on the meager third quarter returns posted by fixed income portfolios.
Interest rates, as measured by the benchmark five year U.S. Treasury decreased
24 basis points from 6.45% at the beginning of the quarter to 6.21% on December
31, 1996.
The year 1996 proved to be a very challenging and volatile period for the
fixed income market. The year started on a bullish note, with expectations of a
slowing economy that surprisingly reignited as demand unexpectedly accelerated
in the first half of the year to later come to an abrupt halt in the third
quarter. Consequently, the much anticipated Fed Funds rate hike never
materialized and the market quickly turned bullish again to rally in the latter
part of the year.
We have a positive outlook for the bond market in 1997. We expect the U.S.
economy to continue its slow to moderate growth and interest rates to remain
stuck in a range, as they did in 1996. Fiscal policy is under control and should
support the bond market. Inflation remains low and stable; however, the Federal
Reserve will closely monitor it and act if necessary. Corporate bonds should
continue to do well given the favorable market technicals and the strong credit
fundamentals of American business.
As of December 31, 1996, the Portfolio was invested in 21 corporate
issuers, comprising 53% of total invested assets. U.S. Treasury issues make up
33% of the Portfolio with 9% in mortgaged-backed securities and the balance in
cash equivalents. The average Moody's rating on issues in the Portfolio is Aa3,
reflecting emphasis on higher quality debt issuers.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS
INTERMEDIATE GOV/CORP INDEX
<TABLE>
<CAPTION>
LEHMAN
BROTHERS
MEASUREMENT PERIOD MONY SERIES GOV/CORP IN-
(FISCAL YEAR COVERED) FUND, INC. DEX
<S> <C> <C>
12/31/86 10000 10000
12/31/87 10008 10366
12/31/88 10583 11057
12/31/89 11814 12469
12/31/90 12629 13612
12/31/91 14558 15602
12/31/92 15555 16720
12/31/93 16775 18190
12/31/94 16519 17839
12/31/95 18976 20574
12/31/96 19676 21407
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
3.69% 6.21% 7.07%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
68
<PAGE> 71
MONY SERIES FUND, INC.
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's performance is expected to be more volatile than other fixed income
funds with shorter average maturities, with both the Portfolio's risk and
potential return expected to be greater. The Portfolio had an average maturity
of 21.1 years and a duration of 10.1 years as of December 31, 1996.
For the year ended December 31, 1996, the Portfolio earned a total return
of -0.31%. For the five and ten year periods ending December 31, 1996, the
Portfolio earned an average annual rate of 8.62% and 9.04%, respectively.
Treasury yields seemed to recover from a 125 basis point rise in yields at
mid-year 1996 to close about 69 basis points down by year-end. Perceived growth
in the economy and a Fed tightening of interest rates actually turned to a
stable growth, low inflation environment. There was a stable but vocal Federal
Reserve which added some volatility to the market place. Despite the choppiness
in the Treasury market, the Corporate bond market performed very well and the
risk premium or difference in yields between a corporate issue and a risk-free
Treasury narrowed to historical lows. Corporate bonds benefited from strong
corporate earnings, stable economic growth, and yield hungry domestic and
foreign buyers.
We see little reason for the economy to stray from recent trends: neither a
boom nor a recession are on the horizon. Favorable corporate fundamental factors
such as stable earnings and manageable debt burdens will continue to benefit the
yield seeking buyer demand. With interest rates at the upper end of their recent
range, bonds appear attractive.
As of December 31, 1996, the Portfolio was invested in 30 corporate
issuers, comprising 57% of total invested assets, U.S. Treasury issues represent
34%, with 8% in mortgage and asset-backed securities. The remaining 1%
represents cash equivalents. Our continued emphasis on higher quality is
reflected in the average Moody's rating on issues in the Portfolio which is Aa3.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS LONG GOV/CORP INDEX
<TABLE>
<CAPTION>
LEHMAN
BROTHERS
MEASUREMENT PERIOD MONY SERIES GOV/CORP IN-
(FISCAL YEAR COVERED) FUND, INC. DEX
<S> <C> <C>
12/31/86 10000 10000
12/31/87 9852 9916
12/31/88 10677 10881
12/31/89 12486 12789
12/31/90 13268 13614
12/31/91 15600 16273
12/31/92 16972 17661
12/31/93 19383 20515
12/31/94 18193 19061
12/31/95 23667 24769
12/31/96 23593 24804
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------- ------- --------
<S> <C> <C>
(0.31)% 8.62% 9.04%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
69
<PAGE> 72
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
Stocks were king again in 1996, pushing up at a remarkable pace for the
second consecutive year: the S&P 500 Index (an unmanaged index of the largest
corporations weighted by market capitalization) returned just over 20% setting
new highs with unstoppable ease. Bonds paled in comparison: the benchmark Lehman
Brothers Aggregate Bond Index (a broad based index comprised of government,
corporate, asset-backed and mortgage-backed securities) had a return of only
2.90%, as continued strong growth pushed interest rates up and bond prices lower
for most of the year.
Investor demand for common stocks appears unsatisfiable, supported by good
macroeconomic fundamentals, and corporate growth. Many valuation measures seem
hopelessly out of touch. The question of whether we have entered a "new
paradigm" -- a new age in valuing stocks, or whether an inevitable painful bear
market will return, is one that will only be answered in time.
Bond prices currently have no reason to move out of their broad trading
range: steady but not robust economic growth coupled with low inflation should
keep interest rates from straying too far from current levels.
As of December 31, 1996, the Diversified Portfolio was invested 73% in
common stocks, 16% 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 S&P 500 IN-
(FISCAL YEAR COVERED) FUND, INC. DEX
<S> <C> <C>
12/31/86 10000 10000
12/31/87 10394 10523
12/31/88 11405 12292
12/31/89 13927 16163
12/31/90 14268 15650
12/31/91 17170 20431
12/31/92 17340 21999
12/31/93 19233 24196
12/31/94 19433 24513
12/31/95 24550 33688
12/31/96 28095 41369
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
14.44% 10.36% 10.87%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
70
<PAGE> 73
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 3.3 years as of December 31, 1996.
For the year ended December 31, 1996, the Portfolio earned a total return
of 3.62%. For the five year period ended December 31, 1996, the Portfolio earned
an average annual return of 5.53%. For the period from May 1, 1991 through
December 31, 1996, the Portfolio earned an average annual return of 6.59%.
U.S. Treasury prices moved gradually downward over most of the year,
although a rally in the fourth quarter helped bring positive returns for 1996 as
a whole. The lift in rates and drop in price was caused by accelerating economic
growth throughout the spring, led by business and consumer spending. The
benchmark five year U.S. Treasury Note closed the year priced to yield 6.21%,
after starting in January at a 5.24% yield. By year-end, the market seemed range
bound, calmed by continued healthy, but non-inflationary, economic growth.
We see little reason for the economy to stray from recent trends; neither a
boom nor a recession are on the horizon. With interest rates at the upper end of
their recent range, bonds appear attractive.
The Portfolio is currently invested 100% in U.S. Treasury and Agency
Obligations.
Investments made in the Government Securities Portfolio are not insured nor
guaranteed by the Government.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO FROM INCEPTION (5/1/91) THROUGH 12/31/96 AND
TOTAL RETURN ON LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX
<TABLE>
<CAPTION>
LEHMAN
BROTHERS IN-
TERMEDIATE
MEASUREMENT PERIOD MONY SERIES GOV BOND
(FISCAL YEAR COVERED) FUND, INC. INDEX
<S> <C> <C>
5/1/91 10000 10000
12/31/91 10970 11411
12/31/92 11739 12202
12/31/93 12699 13199
12/31/94 12490 12968
12/31/95 13856 14836
12/31/96 14358 15439
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS SINCE MAY 1, 1991
- ------ ------- -----------------
<S> <C> <C>
3.62% 5.53% 6.59%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
71
<PAGE> 74
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
The Federal Reserve appears to have been very pleased with the soft landing
of the economy in 1996 that resulted from their interest rate changes in 1995.
With the one last tweak of interest rates in early 1996, placing the Fed Funds
rate at 5.25%, the Fed has sat back and watched the economy show overall
moderate growth through the past year. Employment and wages remain strong, but
have not skyrocketed out of control. Consumers have generally been restrained
although somewhat more optimistic in their buying patterns this year as housing
sales were sluggish until rates dropped toward the end of 1996, and as consumers
made only moderate increases in Christmas purchases.
The economy continues on its relatively steady moderate growth path.
Federal Reserve members are watching closely for a turn in the economy one way
or the other but overall, they seem to be relatively happy with the current
economic course. With no pitfalls in sight, we expect the Fed to remain steady
with interest rates through most of 1997. Late 1996 data may provide information
that will lead to a very modest change in interest rates as another preemptive
move by the Fed.
The interest rate curve remains relatively flat. Investors are predicting a
steady course in interest rates by the Federal Reserve. We are therefore
generally running an average portfolio maturity of 45 days, while taking
advantage of market anomalies that periodically occur in one particular maturity
or another. As of December 31, 1996, the average maturity was 27 days, shorter
than usual to take advantage of the year-end spike in short maturity interest
rates.
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 market place without sacrificing current income.
Investments made in 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.
72
<PAGE> 75
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 94.7%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 1.0%
Boeing Co. 200 $ 21,275
-------------------
AIR TRANSPORTATION -- 4.3%
AMR Corp.* 300 26,438
Delta Airlines Inc. 400 28,350
UAL Corp.* 600 37,500
-------------------
92,288
-------------------
AUTOMOBILES -- 1.6%
Chrysler Corp. 400 13,200
Ford Motor Co. 300 9,563
General Motors Corp. 200 11,150
-------------------
33,913
-------------------
BANKS/MAJOR -- 4.5%
BankAmerica Corp. 400 39,900
Chase Manhattan Corp. 300 26,775
Citicorp 300 30,900
-------------------
97,575
-------------------
BANKS/REGIONAL -- 2.3%
Banc One Corp. 500 21,500
Wells Fargo & Co. 100 26,975
-------------------
48,475
-------------------
BEVERAGES-SOFT DRINKS -- 2.0%
Coca-Cola Co. 800 42,100
-------------------
BIO-TECHNOLOGIES -- 1.0%
Amgen, Inc.* 400 21,750
-------------------
CHEMICALS -- 3.0%
du Pont (E.I.) de Nemours &
Co. 300 28,313
Hercules, Inc. 400 17,300
Monsanto, Co. 500 19,438
-------------------
65,051
-------------------
COSMETICS -- 1.1%
Gillette Company 300 23,325
-------------------
DRUGS -- 8.8%
Bristol Myers Squibb Co. 200 21,750
Lilly(Eli) & Co. 400 29,200
Merck & Co., Inc. 300 23,775
Pfizer Inc. 300 24,863
Pharmaceutical Product
Development Corp.* 500 12,625
Schering-Plough Corp. 200 12,950
Smithkline-Beecham, PLC, ADR+ 500 34,000
Warner Lambert Co. 400 30,000
-------------------
189,163
-------------------
ELECTRICAL EQUIPMENT -- 4.1%
Emerson Electric Co. 300 29,025
General Electric Co. 600 59,325
-------------------
88,350
-------------------
ELECTRONICS -- 6.5%
AMP, Inc. 500 $ 19,188
Applied Materials, Inc.* 300 10,781
Hewlett-Packard Co. 400 20,100
Intel Corp. 400 52,375
Motorola, Inc. 200 12,275
Texas Instruments, Inc. 400 25,500
-------------------
140,219
-------------------
ENTERTAINMENT -- 3.0%
Disney (Walt) Co. 400 27,850
Time Warner, Inc. 500 18,750
Viacom, Inc. Class (B)* 500 17,438
-------------------
64,038
-------------------
FINANCIAL SERVICES -- 2.0%
Federal Home Loan Mortgage
Corp. 200 22,025
Federal National Mortgage
Assn. 600 22,350
-------------------
44,375
-------------------
HOSPITAL MANAGEMENT -- 3.3%
Columbia/HCA Healthcare Corp. 450 18,338
Oxford Health Plans, Inc.* 200 11,712
Sunrise Assisted Living, Inc.* 1,000 27,875
United Healthcare Corp. 300 13,500
-------------------
71,425
-------------------
HOSPITAL SUPPLIES -- 1.4%
Johnson & Johnson 600 29,850
-------------------
INSURANCE -- 4.1%
Aetna Inc. 300 24,000
American International Group,
Inc. 300 32,475
General Re Corp. 200 31,550
-------------------
88,025
-------------------
MACHINERY -- 4.0%
Case Corp. 300 16,350
Caterpillar, Inc. 300 22,575
Deere & Co. 600 24,375
Ingersoll-Rand Co. 500 22,250
-------------------
85,550
-------------------
MACHINERY & CONSTRUCTION -- .6%
Fluor Corp. 200 12,550
-------------------
METALS -- .9%
Aluminum Company Of America 300 19,125
-------------------
OFFICE & BUSINESS EQUIP. -- 9.1%
Compaq Computer Corp.* 400 29,700
Electronic Data Systems Corp. 400 17,300
Inference Corp. Class (A)* 1,000 7,250
International Business
Machines Corp. 300 45,300
Micron Technology Inc. 500 14,563
Microsoft, Corp.* 400 33,050
Oracle Corp.* 700 29,225
Sun Microsystems Inc.* 800 20,550
-------------------
196,938
-------------------
</TABLE>
See notes to financial statements.
73
<PAGE> 76
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- DOMESTIC -- 3.1%
Amoco, Corp. 200 $ 16,100
Anadarko Pete Co. 200 12,950
Atlantic Richfield Co. 100 13,250
British Petroleum, PLC. ADR+ 101 14,279
Burlington Resources 200 10,075
-------------------
66,654
-------------------
OIL -- INTERNATIONAL -- 5.0%
Chevron, Corp. 400 26,000
Exxon Corp. 200 19,600
Mobil Corp. 200 24,450
Royal Dutch Petroleum Co. 100 17,075
Texaco, Inc. 200 19,625
-------------------
106,750
-------------------
OIL -- SERVICES -- 7.4%
Baker Hughes, Inc. 600 20,700
Energy Ventures Inc. 1,000 50,875
Fort Howard Corp.* 400 11,075
Schlumberger Limited 300 29,963
Trico Marine Services, Inc. 1,000 48,000
-------------------
160,613
-------------------
PAPER -- .6%
International Paper Co. 300 12,113
-------------------
RESTAURANTS -- .8%
McDonald's Corp. 400 18,100
-------------------
SPECIALTY RETAILERS -- 2.7%
Abercrombie & Fitch* 100 1,650
Gap (The), Inc. 600 18,075
Nautica Enterprises, Inc.* 800 20,200
Tommy Hilfiger Corp.* 400 19,200
-------------------
59,125
-------------------
SOAPS -- 1.0%
Procter & Gamble Inc. 200 21,500
-------------------
TELECOMMUNICATIONS -- 1.5%
Octel Communications Corp.* 400 7,000
Worldcom Inc.* 1,000 26,062
-------------------
33,062
-------------------
TELECOMMUNICATIONS-
EQUIPMENT -- 3.0%
Cabletron Systems, Inc.* 600 $ 19,950
Cisco Systems, Inc.* 500 31,813
Teleport Communications, Inc.* 400 12,200
-------------------
63,963
-------------------
TOBACCO -- 1.0%
Philip Morris Cos., Inc. 200 22,519
-------------------
TOTAL COMMON STOCKS
(COST $1,446,496) $ 2,039,759
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
-------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.6%
- -----------------------------------------------------------------------------
Federal Home Loan Mortgage
Corp.,
5.45%, due 01/17/97 (cost
$99,758) $100,000 $ 99,758
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $1,546,254) 99.3% $ 2,139,517
OTHER ASSETS LESS LIABILITIES -- .7% 15,152
- -----------------------------------------------------------------------------
NET ASSETS 100.0% $ 2,154,669
===============================================================
The aggregate cost of securities for federal income tax purposes at December
31, 1996 is $1,551,381.
The following amounts are based on costs for federal income tax purposes.
Aggregate gross unrealized appreciation $ 605,252
Aggregate gross unrealized depreciation (17,116)
-------------------
Net unrealized appreciation $ 588,136
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ American Depository Receipts.
Percentages are based on net assets.
74
<PAGE> 77
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 97.9%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 2.2%
Northrop Grumman Corp. 2,500 $ 206,875
United Technologies Corp. 3,000 198,000
----------
404,875
----------
AUTOMOBILES -- 1.4%
Chrysler Corp. 2,000 66,000
Ford Motor Co. 2,500 79,688
General Motors Corp. 2,000 111,500
----------
257,188
----------
AUTOMOTIVE PARTS -- 1.8%
Dana Corp. 6,000 195,750
Eaton Corp. 2,000 139,500
----------
335,250
----------
BANKS/MONEY CENTERS -- 4.4%
Bank of New York Co., Inc. 4,000 135,000
BankAmerica Corp. 2,800 279,300
Bankers Trust New York Corp. 2,000 172,500
Chase Manhattan Corp. 2,500 223,125
----------
809,925
----------
BANKS/REGIONAL -- 4.6%
Banc One Corp. 4,000 172,000
First Union Corp. 3,000 222,000
NationsBank Corp. 2,000 195,500
Wells Fargo & Co. 1,000 269,750
----------
859,250
----------
CHEMICALS -- 4.1%
Dow Chemical Co. 2,000 156,750
du Pont (E.I.) de Nemours
& Co. 2,000 188,750
Monsanto Co. 7,000 272,125
Olin Corp. 4,000 150,500
----------
768,125
----------
CONGLOMERATES -- 4.5%
GATX Corp. 2,000 97,000
General Signal Corp. 4,000 171,000
Harsco Corp. 2,000 137,000
Ogden Corp. 8,000 150,000
Tenneco 2,000 90,250
Textron Inc. 2,000 188,500
----------
833,750
----------
COSMETICS -- 1.5%
Avon Products, Inc. 5,000 285,625
----------
DRUGS -- 9.4%
American Home Products Corp. 3,000 175,875
Baxter International, Inc. 3,000 123,000
Bristol Myers Squibb Co. 1,500 163,125
Lilly (Eli) & Co. 3,000 219,000
Merck and Co., Inc. 3,000 237,750
Pfizer Inc. 1,500 124,313
Schering-Plough Corp. 2,000 129,500
Smithkline Beecham P.L.C. 4,000 272,000
Warner Lambert Co. 4,000 300,000
----------
1,744,563
----------
ELECTRICAL EQUIPMENT -- 4.0%
Emerson Electric Co. 3,000 $ 290,250
General Electric Co. 4,500 444,938
----------
735,188
----------
ELECTRONICS -- 3.1%
AMP Inc. 5,000 191,875
Honeywell Inc. 3,000 197,250
Thomas & Betts Corp. 4,000 177,500
----------
566,625
----------
FOREST PRODUCTS -- 1.2%
Georgia Pacific Corp. 1,500 108,000
Weyerhaeuser Co. 2,500 118,437
----------
226,437
----------
INSURANCE -- 3.7%
Aetna Inc. 2,400 192,000
Allstate Corp. 3,000 173,625
CIGNA Corp. 1,500 204,938
Lincoln National Corp. 2,500 131,250
----------
701,813
----------
MACHINERY -- 3.3%
Cooper Industries, Inc. 3,000 126,375
Deere & Co. 5,000 203,125
Goulds Pumps, Inc. 4,000 91,748
Timken Co. 4,000 183,500
----------
604,748
----------
METALS -- 2.1%
Carpenter Technology Corp. 2,000 73,250
Freeport McMoRan Copper &
Gold, Inc. 3,000 84,375
Phelps Dodge Corp. 1,000 67,500
Reynolds Metals Co. 2,000 112,750
USX-U.S. Steel 1,500 47,063
----------
384,938
----------
MISCELLANEOUS -- 1.1%
Minnesota Mining &
Manufacturing Co. 2,500 207,188
----------
MISCELLANEOUS FINANCE -- 2.0%
American Express Co. 4,000 226,000
Federal National Mortgage
Assn. 4,000 149,000
----------
375,000
----------
NATURAL GAS DIVERSIFIED -- 3.5%
Consolidated Natural Gas Co. 3,000 165,750
El Paso Natural Gas 3,186 160,893
Questar Corp. 4,000 147,000
Sonat Inc. 3,500 180,250
----------
653,893
----------
OFFICE & BUSINESS
EQUIPMENT -- 1.9%
Pitney-Bowes, Inc. 3,500 190,750
Xerox Corp. 3,000 157,875
----------
348,625
----------
OIL -- DOMESTIC -- 1.9%
Amoco, Corp. 2,000 161,000
Atlantic Richfield Co. 1,500 198,750
----------
359,750
----------
</TABLE>
See notes to financial statements.
75
<PAGE> 78
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- INTERNATIONAL -- 7.1%
British Petroleum 1,713 $ 242,175
Chevron, Corp. 3,000 195,000
Exxon Corp. 2,000 196,000
Mobil Corp. 1,500 183,375
Royal Dutch Petroleum Co. 1,500 256,125
Texaco, Inc. 2,500 245,313
----------
1,317,988
----------
OIL -- SERVICE &
DRILLING -- 2.3%
Dresser Industries Inc. 5,000 155,000
Williams (The) Companies,
Inc. 7,500 281,250
----------
436,250
----------
PAPER -- 1.2%
International Paper Co. 2,500 100,938
Union Camp Corp. 2,500 119,375
----------
220,313
----------
PHOTOGRAPHY -- 1.3%
Eastman Kodak Co. 3,000 240,750
----------
PUBLISHING -- 1.3%
Dun & Bradstreet Corp. 2,500 59,375
McGraw-Hill Companies, Inc. 4,000 184,500
----------
243,875
----------
RAILROADS -- 2.2%
Conrail Inc. 1,148 114,370
Norfolk Southern Corp. 2,000 175,000
Union Pacific Co. 2,000 120,250
----------
409,620
----------
REAL ESTATE -- 4.9%
Avalon Properties Inc. 2,000 57,500
Bay Apartment Community, Inc. 2,000 72,000
Crescent Real Estate 1,500 79,125
Developers Diversified Realty 2,000 74,250
Equity Residential Properties
Trust 2,000 82,500
Felcor Suite Hotels Inc. 3,500 123,813
Health Care Property
Investors, Inc. 5,000 175,000
Healthcare Realty Trust 2,000 53,000
Irvine Apartment Communities,
Inc. 3,000 75,000
Meditrust 1,000 40,000
Redwood Trust Inc. 2,000 74,500
----------
906,688
----------
SAVINGS & LOAN -- 2.0%
Ahmanson (H.F.) & Co. 6,000 195,000
Great Western Financial Corp. 6,000 174,000
----------
369,000
----------
SOAPS -- 1.2%
Colgate Palmolive Co. 2,500 230,625
----------
TELECOMMUNICATIONS
EQUIPMENT -- 1.1%
Harris Corp. 3,000 205,875
----------
TOBACCO -- 2.2%
American Brands Inc. 3,500 $ 173,688
Philip Morris Companies, Inc. 2,000 225,250
----------
398,938
----------
UTILITIES -- ELECTRIC -- 2.8%
American Electric Power Co.,
Inc. 3,000 123,375
Carolina Power & Light Co. 4,000 146,000
FPL Group, Inc. 3,000 138,000
Southern Co. 5,000 113,125
----------
520,500
----------
UTILITIES -- TELEPHONE -- 6.6%
Ameritech Corp. 2,500 151,562
Bell Atlantic Corp. 2,000 129,500
Bellsouth Corp. 3,500 141,313
GTE Corp. 3,000 136,500
NYNEX Corp. 2,000 96,250
Pacific Telesis Group 5,000 183,750
SBC Communications Inc. 2,500 129,375
Sprint, Corp. 4,000 159,500
U.S. West Communications Inc. 3,000 96,745
----------
1,224,495
----------
TOTAL COMMON STOCKS
(COST $12,828,460) $ 18,187,673
<CAPTION>
PRINCIPAL AMOUNT
-------------------
<S> <C> <C>
COMMERCIAL PAPER -- 1.3%
American Express Co., 5.38%,
due 01/29/97 $ 100,000 $ 99,582
General Electric Co., 5.50%,
due 01/27/97 150,000 149,404
----------
TOTAL COMMERCIAL PAPER
(COST $248,986) $ 248,986
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.1%
Federal Home Loan Mortgage
Corp.,
5.45%, due 01/17/97
(cost $199,516) $ 200,000 $ 199,516
TOTAL INVESTMENTS
(COST $13,276,962) 100.3% $ 18,636,175
OTHER ASSETS LESS LIABILITIES -- (.3%) (63,828)
NET ASSETS 100.0% $ 18,572,347
The aggregate cost of securities for federal income tax purpose at December
31, 1996 is $13,265,982.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 5,446,647
Aggregate gross unrealized depreciation (76,454)
----------
Net unrealized appreciation $ 5,370,193
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
76
<PAGE> 79
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 52.3%
- ---------------------------------------------------------------
Associates Corp. of North America,
6.00%, due 06/15/00 $1,000,000 $ 985,270
Bank of Boston,
6.625%, due 02/01/04 1,000,000 978,540
Bear Stearns Co. Inc.,
7.25%, due 10/15/06 1,000,000 1,004,010
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 1,015,650
Chase Manhattan Corp.,
6.75%, due 08/15/08 1,000,000 967,500
Chemical Master Credit Card Trust,
5.98%, due 12/15/08 1,000,000 948,980
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 981,930
Connecticut Light & Power Co.,
7.25%, due 07/01/99 1,000,000 1,004,570
First Chicago Corp.,
9.00%, due 06/15/99 1,000,000 1,059,570
First Data Corp.,
6.75%, due 07/15/05 1,000,000 988,050
General Electric Capital Corp.,
6.66%, due 05/01/18 1,000,000 1,007,540
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,011,260
Hertz Corp., senior sub.,
10.125%, due 03/01/97 1,000,000 1,006,630
Laidlaw Inc.,
7.70%, due 08/15/02 1,000,000 1,038,530
Lockheed Martin Corp.,
6.55%, due 05/15/99 1,000,000 1,003,910
National Rural Utilities,
6.75%, due 09/01/01 1,000,000 1,008,290
Occidental Petroleum Corp.,
7.08%, due 01/12/98 1,000,000 1,010,600
Philip Morris Companies, Inc.,
6.80%, due 12/01/03 1,000,000 985,490
Potomac Edison Co.,
8.00%, due 06/01/06 1,000,000 1,022,510
Provident Bank,
6.375%, due 01/15/04 1,000,000 957,580
Structured Asset Securities Co.,
5.944%, due 02/25/28 980,000 960,851
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $20,974,209) $ 20,947,261
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.44%, due 01/06/97 $ 100,000 $ 99,924
Federal Home Loan Mortgage Corp.,
5.42%, due 01/06/97 150,000 149,887
Federal Home Loan Mortgage Corp.,
5.33%, due 01/07/97 100,000 99,912
Federal Home Loan Mortgage Corp.,
5.30%, due 01/13/97 100,000 99,823
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.50%, due 02/15/21 2,000,000 1,958,140
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.00%, due 01/25/03 1,000,000 1,008,790
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $3,399,403) $ 3,416,476
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 32.5%
- -------------------------------------------------------------------------
U.S. Treasury Notes,
6.125%, due 05/31/97 $2,000,000 $ 2,003,120
U.S. Treasury Notes,
7.375%, due 11/15/97 1,000,000 1,011,560
U.S. Treasury Notes,
4.750%, due 09/30/98 2,000,000 1,961,860
U.S. Treasury Notes,
4.750%, due 10/31/98 1,000,000 980,000
U.S. Treasury Notes,
5.875%, due 10/31/98 2,000,000 1,997,500
U.S. Treasury Notes,
6.875%, due 07/31/99 2,000,000 2,040,620
U.S. Treasury Notes,
5.875%, due 11/15/99 1,000,000 995,930
U.S. Treasury Notes,
7.125%, due 02/29/00 1,000,000 1,029,370
U.S. Treasury Notes,
6.375%, due 08/15/02 1,000,000 1,006,560
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $13,048,252) $ 13,026,520
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 5.1%
- -------------------------------------------------------------------------
American Express Co.,
5.32%, due 01/02/97 $1,000,000 $ 999,852
American Express Co.,
5.38%, due 01/29/97 50,000 49,791
CIT Group Holdings Inc.,
5.33%, due 01/06/97 75,000 74,945
CIT Group Holdings Inc.,
5.35%, due 02/25/97 250,000 247,957
General Electric Co.,
5.31%, due 01/13/97 100,000 99,820
General Electric Co.,
5.32%, due 01/16/97 100,000 99,771
General Electric Co.,
5.50%, due 01/27/97 150,000 149,404
Weyerhaeuser Co.,
5.90%, due 01/07/97 300,000 299,705
----------------
TOTAL COMMERCIAL PAPER
(COST $2,021,255) $ 2,021,245
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $39,443,119) 98.4% $ 39,411,502
OTHER ASSETS LESS LIABILITIES -- 1.6% 633,751
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 40,045,253
===============================================================
The aggregate cost of securities for federal income tax purpose at
December 31, 1996 is $39,443,119.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 274,347
Aggregate gross unrealized depreciation (305,964)
----------------
Net unrealized depreciation $ (31,617)
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
77
<PAGE> 80
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 56.0%
- -------------------------------------------------------------------------
Aetna Services Inc.,
7.625%, due 08/15/26 $ 1,000,000 $ 1,008,680
Allegiance Corp.,
7.800%, due 10/15/16 1,000,000 1,005,550
Apache Corp.,
7.700%, due 03/15/26 1,000,000 1,018,120
Boeing Co.,
8.625%, due 11/15/31 1,000,000 1,174,230
British Columbia, Province of,
7.250%, due 09/01/36 1,000,000 1,015,650
Capita Equipment Receivable
Trust 1996-1,
6.570%, due 03/15/01 1,000,000 1,001,820
Chase Manhattan Corp.,
6.750%, due 08/15/08 1,000,000 967,500
Columbia/HCA Healthcare Corp.,
7.690%, due 06/15/25 1,000,000 1,026,250
Commonwealth Edison Co.,
7.000%, due 07/01/05 1,000,000 981,930
Crown Cork and Seal Co. Inc.,
7.375%, due 12/15/26 1,000,000 980,660
Dow Capital BV,
9.200%, due 06/01/10 2,000,000 2,314,580
General Electric Capital Corp.,
8.300%, due 09/20/09 2,000,000 2,252,200
General Motors Corp.,
7.000%, due 06/15/03 1,000,000 1,007,680
GTE South Corp.,
7.500%, due 03/15/26 1,000,000 988,360
Hydro-Quebec,
8.500%, due 12/01/29 1,000,000 1,109,440
International Bank for
Reconstruction & Development,
8.875%, due 03/01/26 1,000,000 1,216,430
James River Corp.,
7.750%, due 11/15/23 1,000,000 987,090
Laidlaw Inc.,
7.875%, due 04/15/05 1,000,000 1,045,520
Legrand SA,
8.500%, due 02/15/25 1,000,000 1,117,350
Lockheed Martin Corp.,
7.650%, due 05/01/16 1,000,000 1,026,010
Millennium America Co.,
7.625%, due 11/15/26 1,000,000 974,280
National City Bank of Cleveland,
7.250%, due 07/15/10 1,000,000 1,008,250
Philip Morris Companies Inc.,
7.250%, due 09/15/01 1,000,000 1,015,610
Procter & Gamble Corp.,
6.450%, due 01/15/26 1,000,000 906,740
Provident Bank of Cincinnati,
6.375%, due 01/15/04 1,000,000 957,580
Rohm & Haas Co.,
9.500%, due 04/01/21 1,000,000 1,132,620
Seagram (J.E.) & Sons Inc.,
9.650%, due 08/15/18 1,000,000 1,239,390
Smurfit Capital Funding PLC,
7.500%, due 11/20/25 1,000,000 974,560
Swiss Bank Corp.,
7.750%, due 09/01/26 2,000,000 2,066,700
Texaco Capital, Inc.,
9.750%, due 03/15/20 $ 1,000,000 $ 1,267,350
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $33,770,244) $ 34,788,130
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
6.850%, due 01/15/22 $ 1,000,000 $ 994,890
Federal Home Loan Mortgage Corp.,
5.450%, due 01/17/97 350,000 349,152
Federal National Mortgage Assn.,
5.430%, due 01/17/97 900,000 897,828
Federal National Mortgage Assn.,
REMIC, Trust 92-198,
7.500%, due 09/25/22 2,000,000 2,039,480
Student Loan Marketing Assn.,
5.950%, due 07/27/09 1,000,000 1,002,695
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $5,006,199) $ 5,284,045
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 33.3%
- -------------------------------------------------------------------------
U.S. Treasury Notes,
6.250%, due 10/31/01 $ 500,000 $ 500,310
U.S. Treasury Notes,
6.500%, due 10/15/06 500,000 502,811
U.S. Treasury Notes,
6.875%, due 08/15/25 1,500,000 1,528,590
U.S. Treasury Notes,
7.625%, due 02/15/25 9,500,000 10,547,945
U.S. Treasury Notes,
7.750%, due 12/31/99 500,000 522,810
U.S. Treasury Notes,
7.875%, due 02/15/21 2,500,000 2,824,200
U.S. Treasury Notes,
8.750%, due 08/15/20 1,000,000 1,231,250
U.S. Treasury Strip,
0.000%, due 05/18/18 12,900,000 2,990,220
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $20,384,869) $ 20,648,136
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 0.4%
- -------------------------------------------------------------------------
Household International Corp.,
5.45%, due 01/14/97
(COST $249,508) $ 250,000 $ 249,508
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $59,410,820) 98.2% $ 60,969,819
OTHER ASSETS LESS LIABILITIES -- 1.8% 1,128,998
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 62,098,817
===============================================================
The aggregate cost of securities for federal income tax purposes at
December 31, 1996 is $59,410,820.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 2,159,082
Aggregate gross unrealized depreciation (600,083)
----------------
Net unrealized appreciation $ 1,558,999
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
78
<PAGE> 81
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCK -- 72.8%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 1.0%
Boeing Co. 300 $ 31,913
----------------
AIR TRANSPORTATION -- 3.4%
AMR Corp.* 400 35,250
Delta Airlines Inc. 600 42,525
UAL Corp.* 600 37,500
----------------
115,275
----------------
AUTOMOBILES -- 1.3%
Chrysler Corp. 400 13,200
Ford Motor Co. 400 12,750
General Motors Corp. 300 16,725
----------------
42,675
----------------
BANKS/MAJOR -- 2.6%
BankAmerica Corp. 600 59,850
Chase Manhattan Corp. 300 26,775
----------------
86,625
----------------
BANKS/REGIONAL -- 2.8%
Banc One Corp. 600 25,800
Citicorp 400 41,200
Wells Fargo & Co. 100 26,975
----------------
93,975
----------------
BIO-TECHNOLOGIES -- 1.0%
Amgen Inc.* 600 32,625
----------------
CHEMICALS -- 2.7%
du Pont (E.I.) de Nemours & Co. 300 28,313
Hercules, Inc. 500 21,625
Monsanto, Co. 1,000 38,875
----------------
88,813
----------------
COSMETICS -- .9%
Gillette Co. 400 31,100
----------------
DRUGS -- 6.2%
Bristol Myers Squibb Co. 300 32,625
Lilly (Eli) & Co. 400 29,200
Merck & Co., Inc. 300 23,775
Pfizer Inc. 400 33,150
Schering-Plough Corp. 200 12,950
Smithkline Beecham, PLC, ADR+ 500 34,000
Warner-Lambert Co. 600 45,000
----------------
210,700
----------------
ELECTRICAL EQUIPMENT -- 3.5%
Emerson Electric Co. 500 48,375
General Electric Co. 700 69,213
----------------
117,588
----------------
ELECTRONICS -- 4.5%
AMP, Inc. 800 30,700
Applied Materials, Inc.* 400 14,375
Hewlett-Packard Co. 500 25,125
Intel Corp. 300 39,281
Motorola, Inc. 200 12,275
Texas Instruments, Inc. 500 31,875
----------------
153,631
----------------
ENTERTAINMENT -- 1.9%
Disney (Walt) Company 400 $ 27,850
Time Warner, Inc. 500 18,750
Viacom, Inc.* Class (B) 500 17,438
----------------
64,038
----------------
FINANCIAL SERVICES -- 1.8%
Federal Home Loan Mortgage Corp. 300 33,038
Federal National Mortgage Assn. 700 26,075
----------------
59,113
----------------
HOSPITAL MANAGEMENT -- 2.7%
Aetna Inc. 300 24,000
Columbia/HCA Healthcare Corp. 750 30,563
Oxford Health Plans, Inc.* 400 23,425
United Healthcare Corp. 300 13,500
----------------
91,488
----------------
HOSPITAL SUPPLIES -- 1.2%
Johnson & Johnson 800 39,800
----------------
INSURANCE -- 2.2%
American International Group,
Inc. 400 43,300
General Re Corp. 200 31,550
----------------
74,850
----------------
MACHINERY -- 3.6%
Case Corp. 500 27,250
Caterpillar, Inc. 300 22,575
Deere & Co. 900 36,563
Ingersoll-Rand Co. 800 35,600
----------------
121,988
----------------
MACHINERY & CONSTRUCTION -- .6%
Fluor, Corp. 300 18,825
----------------
METALS -- .7%
Aluminum Company of America 400 25,500
----------------
OFFICE & BUSINESS EQUIPMENT -- 5.7%
Compaq Computer Corp.* 500 37,125
Electronics Data Systems Corp. 400 17,300
International Business Machines
Corp. 300 45,300
Micron Technology, Inc. 500 14,563
Microsoft Corp.* 400 33,050
Oracle Corp.* 600 25,050
Sun Microsystems Inc.* 800 20,550
----------------
192,938
----------------
OIL -- DOMESTIC -- 2.5%
Amoco Corp. 300 24,150
Anadarko Pete Co. 300 19,425
Atlantic Richfield Co. 200 26,500
Burlington Resources 300 15,113
----------------
85,188
----------------
OIL -- INTERNATIONAL -- 5.1%
British Petroleum, PLC, ADR+ 208 29,406
Chevron Corp. 400 26,000
Exxon Corp. 300 29,400
Mobil Corp. 200 24,450
Royal Dutch Petroleum Co. 200 34,150
Texaco, Inc. 300 29,438
----------------
172,844
----------------
</TABLE>
See notes to financial statements.
79
<PAGE> 82
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- SERVICES -- 5.4%
Baker Hughes Inc. 800 $ 27,600
Energy Ventures, Inc. 1,500 76,313
Schlumberger Limited 300 29,963
Trico Marine Services, Inc. 1,000 48,000
----------------
181,876
----------------
PAPER -- 1.0%
Fort Howard Corp.* 600 16,612
International Paper Co. 400 16,150
----------------
32,762
----------------
RESTAURANTS -- .6%
McDonald's Corp. 500 22,625
----------------
RETAILERS -- 2.3%
Gap (The), Inc. 800 24,100
Nautica Enterprises, Inc.* 1,200 30,300
Tommy Hilfiger Corp.* 500 24,000
----------------
78,400
----------------
SOAPS -- .9%
Procter & Gamble Inc. 300 32,250
----------------
TELECOMMUNICATIONS -- 3.7%
Cabletron Systems, Inc.* 600 19,950
Cisco Systems, Inc.* 600 38,175
Octel Communications Corp.* 500 8,750
Teleport Communications Group,
Class(A) 600 18,300
Worldcom, Inc.* 1,600 41,699
----------------
126,874
----------------
TOBACCO -- 1.0%
Philip Morris Cos., Inc. 300 33,781
----------------
TOTAL COMMON STOCKS
(COST $1,658,938) $ 2,460,060
- --------------------------------------------------------------------------
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------
COMMERCIAL PAPER -- 10.4%
- ---------------------------------------------------------------
American Express Company,
5.33%, due 01/09/97 $300,000 $ 299,645
CIT Group Holdings Inc.,
5.33%, due 01/06/97 50,000 49,963
----------------
TOTAL COMMERCIAL PAPER
(COST $349,608) $ 349,608
- --------------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 15.6%
- ---------------------------------------------------------------
U.S. Treasury Note,
7.50%, due 05/15/02
(COST $518,404) $500,000 $ 528,750
- --------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,526,950) 98.8% $ 3,338,418
OTHER ASSETS LESS LIABILITIES -- 1.2% 42,169
- --------------------------------------------------------------------------
NET ASSETS 100.0% $ 3,380,587
===============================================================
The aggregate cost of securities for Federal income tax purposes at
December 31, 1996, is $2,534,288.
The following amounts are based on costs for Federal income tax
purposes:
Aggregate gross unrealized appreciation $ 817,280
Aggregate gross unrealized depreciation (13,150)
----------------
Net unrealized appreciation $ 804,130
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ American Depository Receipts.
Percentages are based on net assets.
80
<PAGE> 83
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 36.8%
- ---------------------------------------------------------------
U.S. Treasury Note,
5.375%, due 11/30/97 $2,000,000 $ 1,990,000
U.S. Treasury Note,
6.00%, due 05/31/98 1,000,000 1,000,620
U.S. Treasury Note,
6.00%, due 08/15/99 1,000,000 999,680
U.S. Treasury Note,
5.875%, due 11/15/99 1,000,000 995,930
U.S. Treasury Note,
7.75%, due 11/30/99 1,000,000 1,044,370
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $6,001,853) $ 6,030,600
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 62.1%
- -------------------------------------------------------------------------
Federal Farm Credit Union,
5.63%, due 05/26/98 $2,000,000 $ 1,995,100
Federal Home Loan Mortgage Corp.,
5.25%, due 01/03/97 120,000 119,965
Federal Home Loan Mortgage Corp.,
5.35%, due 01/06/97 300,000 299,777
Federal Home Loan Mortgage Corp.,
5.42%, due 01/06/97 100,000 99,925
Federal Home Loan Mortgage Corp.,
5.45%, due 01/24/97 450,000 448,433
Federal Home Loan Mortgage Corp.,
6.50%, due 11/15/21 1,500,000 1,457,175
Federal National Mortgage Assn.,
5.24%, due 01/03/97 150,000 149,956
Federal National Mortgage Assn.,
5.34%, due 03/21/97 500,000 494,141
Federal National Mortgage Assn.,
7.00%, due 01/25/03 200,000 201,758
Federal National Mortgage Assn.,
7.00%, due 01/25/03 $ 85,000 $ 85,748
Federal National Mortgage Assn.,
5.25%, due 09/25/12 798,230 794,071
Federal National Mortgage Assn.,
5.75%, due 08/25/18 500,000 489,025
Federal National Mortgage Assn.,
6.50%, due 10/25/23 1,300,000 1,287,858
Government National Mortgage
Assn.,
7.50%, due 05/15/24 997,749 998,367
Government National Mortgage
Assn.,
7.50%, due 10/15/24 262,959 263,122
Student Loan Marketing Assn.,
7.44%, due 03/28/00 500,000 500,035
Tennessee Valley Authority,
6.375%, due 06/15/05 500,000 490,565
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $10,187,163) $ 10,175,021
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $16,189,016) 98.9% $ 16,205,621
OTHER ASSETS LESS LIABILITIES -- 1.1% 177,679
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 16,383,300
===============================================================
The aggregate cost of securities for federal income tax purposes at
December 31, 1996 is $16,189,016.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 95,823
Aggregate gross unrealized depreciation (79,218)
----------------
Net unrealized appreciation $ 16,605
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
81
<PAGE> 84
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMERCIAL PAPER -- 98.5%
- ---------------------------------------------------------------
Associates Corp. of North
America,
5.31%, due 01/06/97 $4,000,000 $ 3,997,050
Avco Financial Services, Canada
Ltd.,
5.41%, due 03/13/97 4,000,000 3,957,321
Avco Financial Services Inc.,
5.32%, due 01/23/97 1,775,000 1,769,229
Banc One Funding Corp.,
5.46%, due 01/06/97 1,050,000 1,049,204
Banco Real S.A.,
5.36%, due 04/21/97 1,000,000 983,623
Bank of New York Co., Inc.,
5.30%, due 01/10/97 2,500,000 2,496,687
Bank of Nova Scotia,
5.50%, due 01/03/97 5,000,000 5,070,278
Bell Atlantic Network Funding
Corp.,
5.40%, due 01/24/97 1,413,000 1,408,125
Capital One Funding Corp.,
5.84%, due 04/01/11 (a) 3,900,000 3,903,734
C.I.T. Group Holdings, Inc.,
5.30%, due 01/27/97 1,800,000 1,793,110
C.I.T. Group Holdings, Inc.,
5.48%, due 01/31/97 1,875,000 1,866,438
C.I.T. Group Holdings, Inc.,
5.35%, due 02/25/97 1,350,000 1,338,966
Colonial Pipeline Co.,
5.30%, due 01/10/97 2,500,000 2,496,688
Commercial Credit Co.,
5.30%, due 01/06/97 6,300,000 6,295,363
Cooperative Finance Corp.,
5.30%, due 01/10/97 450,000 449,404
du Pont (E.I.) de Nemours & Co.,
5.30%, due 01/21/97 1,550,000 1,545,436
Ford Motor Credit Co.,
5.30%, due 01/08/97 2,050,000 2,047,887
Ford Motor Credit Co.,
5.29%, due 02/03/97 1,880,000 1,870,884
Ford Motor Credit Co.,
5.32%, due 02/03/97 1,000,000 995,124
General Electric Capital Corp.,
5.41%, due 01/09/97 1,000,000 998,798
General Electric Capital Corp.,
5.31%, due 01/13/97 300,000 299,469
General Electric Capital Corp.,
5.40%, due 01/23/97 650,000 647,855
General Electric Capital Corp.,
5.50%, due 01/27/97 100,000 99,603
General Electric Capital Corp.,
5.32%, due 01/28/97 2,720,000 2,709,147
General Motors Corp.,
5.36%, due 01/24/97 5,000,000 4,982,878
Goldman Sachs Group, L.P.,
5.37%, due 01/14/97 3,400,000 3,393,407
Goldman Sachs Group, L.P.,
5.32%, due 04/21/97 $2,500,000 $ 2,459,362
Heller International,
5.70%, due 01/15/97 2,150,000 2,145,234
Heller International,
5.70%, due 01/21/97 4,800,000 4,784,800
Household Finance Corp.,
5.45%, due 01/14/97 1,900,000 1,896,261
Household Finance Corp.,
5.31%, due 01/17/97 1,450,000 1,446,578
Lucent Technologies Inc.,
5.28%, due 01/28/97 2,000,000 1,992,080
Lucent Technologies Inc.,
5.29%, due 01/28/97 3,000,000 2,988,098
Mellon Bank Corp.,
5.40%, due 02/07/97 2,000,000 2,024,900
Merrill Lynch and Co., Inc.,
5.34%, due 01/27/97 1,150,000 1,145,565
Metropolitan Life Funding Inc.,
5.29%, due 01/10/97 4,642,000 4,635,861
Morgan, J.P. & Co., Inc.,
5.35%, due 01/02/97 3,400,000 3,399,495
Morgan, J.P. & Co., Inc.,
5.36%, due 01/02/97 2,375,000 2,374,646
National Westminster Bank Canada,
5.45%, due 02/28/97 3,000,000 2,973,659
Norwest Corp.,
5.40%, due 01/09/97 4,350,000 4,344,780
Paccar Financial Group,
5.44%, due 01/03/97 1,000,000 999,698
Penney, (J.C.) & Co.,
5.30%, due 01/30/97 3,600,000 3,584,630
PHH Corp.,
5.68%, due 01/17/97 6,200,000 6,184,348
Philip Morris Co.,
5.30%, due 01/13/97 4,500,000 4,492,050
Philip Morris Co.,
5.30%, due 01/14/97 1,500,000 1,497,129
Prudential Funding Corp.,
5.39%, due 01/07/97 5,400,000 5,395,149
Sanwa Business Credit,
5.58%, due 01/15/97 3,800,000 3,791,754
Sears Roebuck Acceptance Corp.,
5.58%, due 01/10/97 1,275,000 1,273,221
Sears Roebuck Acceptance Corp.,
5.33%, due 01/30/97 4,000,000 3,982,826
Sears Roebuck Acceptance Corp.,
5.34%, due 02/06/97 330,000 328,238
Toronto Dominion Bank,
5.40%, due 01/09/97 2,200,000 2,197,360
Toronto Dominion Bank,
5.47%, due 01/13/97 2,900,000 2,894,712
</TABLE>
See notes to financial statements.
82
<PAGE> 85
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Transamerica Commercial Finance
Canada,
5.33%, due 01/13/97 $ 2,000,000 $ 1,996,447
Walt Disney Co.,
5.31%, due 02/14/97 3,000,000 2,980,530
Weyerhaeuser Mortgage Co.,
5.90%, due 01/07/97 850,000 849,164
Weyerhaeuser Mortgage Co.,
5.40%, due 01/16/97 3,300,000 3,292,575
----------------
TOTAL COMMERCIAL PAPER
(COST $142,816,858) $ 142,816,858
- ------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.2%
- ------------------------------------------------------------------------
Federal Home Loan Bank,
5.45%, due 01/24/97 $ 170,000 $ 169,408
Federal Home Loan Bank,
5.85%, due 11/06/97 3,000,000 3,026,926
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $3,196,334) $ 3,196,334
- ------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $146,013,192) 100.7% $ 146,013,192
OTHER ASSETS LESS LIABILITIES -- (.7%) (1,081,033)
- ------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 144,932,159
===============================================================
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
(a) The interest rate is subject to change periodically based on the greater of
the 30 or 90-day commercial paper rate. This instrument resets on a weekly
basis. The rate shown was in effect as of December 26, 1996.
Percentages are based on net assets.
83
<PAGE> 86
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
EQUITY GROWTH EQUITY INCOME TERM BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Securities, at value (Note 2)*.................... $ 2,139,517 $18,636,175 $ 39,411,502 $ 60,969,819
Cash.............................................. 25,749 52,514 66,137 74,215
Dividends receivable.............................. 1,820 38,254 0 0
Interest receivable............................... 0 0 579,794 1,103,274
Receivable for fund shares sold................... 5 5 29,200 17,612
Prepaid expense................................... 222 1,561 2,541 3,805
------------- ------------- ------------- -------------
Total assets.......................................... 2,167,313 18,728,509 40,089,174 62,168,725
------------- ------------- ------------- -------------
LIABILITIES
Payable for fund shares redeemed.................. 26 20,521 12,482 26,463
Payable for securities purchased.................. 0 114,125 0 0
Accrued expenses:
Investment advisory fees..................... 773 6,596 14,053 22,039
Custodian fees............................... 817 1,147 1,035 2,438
Professional fees............................ 10,946 13,138 15,157 17,134
Miscellaneous fees........................... 82 635 1,194 1,834
------------- ------------- ------------- -------------
Total liabilities..................................... 12,644 156,162 43,921 69,908
------------- ------------- ------------- -------------
NET ASSETS............................................ $ 2,154,669 $18,572,347 $ 40,045,253 $ 62,098,817
============= ============= ============ ============
Net assets consist of:
Capital stock -- $.01 par value................... $ 710 $ 7,922 $ 36,554 $ 48,366
Additional paid-in capital........................ 1,364,350 10,948,547 37,856,381 56,915,623
Undistributed net investment income............... 12,501 500,290 2,284,209 3,837,045
Undistributed/accumulated net realized gain (loss)
on
investments.................................. 183,845 1,756,375 (100,274) (261,216)
Net unrealized appreciation (depreciation) of
investments..................................... 593,263 5,359,213 (31,617) 1,558,999
------------- ------------- ------------- -------------
NET ASSETS............................................ $ 2,154,669 $18,572,347 $ 40,045,253 $ 62,098,817
============= ============= ============ ============
Shares of capital stock outstanding................... 70,950 792,193 3,655,407 4,836,582
------------- ------------- ------------- -------------
Net asset value per share of outstanding capital
stock............................................... $ 30.37 $ 23.44 $ 10.96 $ 12.84
============= ============= ============ ============
*Investments at cost.................................. $ 1,546,254 $13,276,962 $ 39,443,119 $ 59,410,820
<CAPTION>
GOVERNMENT
DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------
<S> <C<C> <C> <C>
ASSETS
Securities, at value (Note 2)*.................... $ 3,338,418 $ 16,205,621 $146,013,192
Cash.............................................. 48,898 71,837 60,320
Dividends receivable.............................. 2,366 0 0
Interest receivable............................... 4,794 109,680 15,356
Receivable for fund shares sold................... 0 20,052 1,199,819
Prepaid expense................................... 239 367 6,025
------------- ------------- ------------
Total assets.......................................... 3,394,715 16,407,557 147,294,712
------------- ------------- ------------
LIABILITIES
Payable for fund shares redeemed.................. 59 5,735 2,284,673
Payable for securities purchased.................. 0 0 0
Accrued expenses:
Investment advisory fees..................... 1,197 5,568 50,749
Custodian fees............................... 660 1,493 2,933
Professional fees............................ 12,105 11,145 20,816
Miscellaneous fees........................... 107 316 3,382
------------- ------------- ------------
Total liabilities..................................... 14,128 24,257 2,362,553
------------- ------------- ------------
NET ASSETS............................................ $ 3,380,587 $ 16,383,300 $144,932,159
========== ============ =============
Net assets consist of:
Capital stock -- $.01 par value................... $ 1,879 $ 15,492 $ 1,449,322
Additional paid-in capital........................ 2,310,863 15,665,486 143,482,837
Undistributed net investment income............... 67,363 695,233 0
Undistributed/accumulated net realized gain (loss)
on
investments.................................. 189,014 (9,516) 0
Net unrealized appreciation (depreciation) of
investments..................................... 811,468 16,605 0
------------- ------------- ------------
NET ASSETS............................................ $ 3,380,587 $ 16,383,300 $144,932,159
========== ============ =============
Shares of capital stock outstanding................... 187,922 1,549,168 144,932,159
------------- ------------- ------------
Net asset value per share of outstanding capital
stock............................................... $ 17.99 $ 10.58 $ 1.00
========== ============ =============
*Investments at cost.................................. $ 2,526,950 $ 16,189,016 $146,013,192
</TABLE>
See notes to financial statements
84
<PAGE> 87
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the year ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT
EQUITY GROWTH EQUITY INCOME TERM BOND BOND DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest......... $ 7,458 $ 39,555 $ 2,466,764 $ 4,112,161 $ 56,639 $ 760,040 $6,434,175
Dividends........ 27,521 564,718 0 0 38,701 0 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Total
investment
income.... 34,979 604,273 2,466,764 4,112,161 95,340 760,040 6,434,175
------------- ------------- ------------ ----------- ----------- ---------- ------------
EXPENSES:
Investment
advisory fees
(Note 3)....... 8,064 72,917 155,967 240,048 13,426 49,987 473,307
Custodian fees... 7,514 11,203 6,991 8,274 7,558 8,543 13,806
Professional
fees........... 8,123 8,967 10,019 11,111 8,198 5,878 13,669
Directors fees... 357 3,341 7,062 10,922 623 1,844 19,972
Miscellaneous
fees........... 318 3,095 4,884 7,535 540 1,579 13,732
------------- ------------- ------------ ----------- ----------- ---------- ------------
Total
expenses... 24,376 99,523 184,923 277,890 30,345 67,831 534,486
Expenses
reduced by
a
custodian
fee
arrangement... (1,898) (1,896) (2,368) (2,774) (2,368) (3,024) (5,896)
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net
expenses... 22,478 97,627 182,555 275,116 27,977 64,807 528,590
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net investment
income.............. 12,501 506,646 2,284,209 3,837,045 67,363 695,233 5,905,585
------------- ------------- ------------ ----------- ----------- ---------- ------------
REALIZED AND
UNREALIZED GAIN
(LOSS) ON
INVESTMENTS (NOTE
2):
Realized gain
(loss) from
security
transactions
(excluding
short-term
securities):
Proceeds
from
sales..... 811,804 6,869,438 11,002,173 34,147,073 1,005,797 1,235,548 0
Cost of
securities
sold...... 625,294 5,125,323 11,068,379 33,541,115 812,270 1,245,064 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net realized gain
(loss) on
investments......... 186,510 1,744,115 (66,206) 605,958 193,527 (9,516) 0
Net increase
(decrease) in
unrealized
appreciation of
investments......... 183,439 1,057,847 (844,291) (4,731,783) 188,333 (170,310) 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net realized and
unrealized gain
(loss) on
investments......... 369,949 2,801,962 (910,497) (4,125,825) 381,860 (179,826) 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 382,450 $ 3,308,608 $ 1,373,712 $ (288,780) $ 449,223 $ 515,407 $5,905,585
=========== =========== ========== ========== ======== ========= ===========
</TABLE>
See notes to financial statements
85
<PAGE> 88
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO
----------------------- -------------------------
1996 1995 1996 1995
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 12,501 $ 26,883 $ 506,646 $ 608,220
Net realized gain (loss) on investments (Note 2)............... 186,510 93,732 1,744,115 365,016
Net increase (decrease) in unrealized appreciation of
investments.................................................. 183,439 349,191 1,057,847 3,968,525
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.... 382,450 469,806 3,308,608 4,941,761
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)................................. 0 (26,948) (34,413) (567,903)
Net realized gain from investment transactions (Note 4)........ 0 (93,732) 0 (365,016)
Distribution in excess of realized capital gains (Note 4)...... 0 (2,611) 0 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders.......... 0 (123,291) (34,413) (932,919)
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares........................... 344,553 348,609 427,851 489,847
Proceeds from dividends reinvested............................. 0 123,291 34,413 932,919
Net asset value of shares redeemed............................. (445,903) (501,382) (3,255,147) (3,545,498)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions..................................................... (101,350) (29,482) (2,792,883) (2,122,732)
---------- ---------- ----------- -----------
Net increase in net assets......................................... 281,100 317,033 481,312 1,886,110
Net assets beginning of year....................................... 1,873,569 1,556,536 18,091,035 16,204,925
---------- ---------- ----------- -----------
Net assets end of year*............................................ $2,154,669 $1,873,569 $18,572,347 $18,091,035
========= ========= ========== ==========
SHARES ISSUED AND REDEEMED:
Issued......................................................... 12,546 14,901 20,290 26,583
Issued in reinvestment of dividends and distributions.......... 0 4,910 1,654 47,574
Redeemed....................................................... (16,217) (20,796) (152,508) (195,103)
---------- ---------- ----------- -----------
Net increase (decrease).................................... (3,671) (985) (130,564) (120,946)
========= ========= ========== ==========
*Including undistributed net investment income of: $ 12,501 $ 0 $ 500,290 $ 28,990
<CAPTION>
INTERMEDIATE TERM
BOND PORTFOLIO LONG TERM BOND PORTFOLIO
------------------------- ---------------------------
1996 1995 1996 1995
----------- ----------- ------------ ------------
<S> <<C> <C> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 2,284,209 $ 2,091,037 $ 3,837,045 $ 3,342,469
Net realized gain (loss) on investments (Note 2)............... (66,206) (343) 605,958 1,020,813
Net increase (decrease) in unrealized appreciation of
investments.................................................. (844,291) 2,636,279 (4,731,783) 8,936,819
----------- ----------- ------------ ------------
Net increase (decrease) in net assets resulting from operations.... 1,373,712 4,726,973 (288,780) 13,300,101
----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)................................. 0 (2,091,037) 0 (3,342,469)
Net realized gain from investment transactions (Note 4)........ 0 0 0 0
Distribution in excess of realized capital gains (Note 4)...... 0 0 0 0
----------- ----------- ------------ ------------
Total dividends and distributions to shareholders.......... 0 (2,091,037) 0 (3,342,469)
----------- ----------- ------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares........................... 11,119,965 9,732,637 20,808,063 18,197,721
Proceeds from dividends reinvested............................. 0 2,091,037 0 3,342,469
Net asset value of shares redeemed............................. (9,968,257) (9,223,470) (20,438,355) (13,492,262)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets resulting from share
transactions..................................................... 1,151,708 2,600,204 369,708 8,047,928
----------- ----------- ------------ ------------
Net increase in net assets......................................... 2,525,420 5,236,140 80,928 18,005,560
Net assets beginning of year....................................... 37,519,833 32,283,693 62,017,889 44,012,329
----------- ----------- ------------ ------------
Net assets end of year*............................................ $40,045,253 $37,519,833 $ 62,098,817 $ 62,017,889
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued......................................................... 1,048,172 910,082 1,693,456 1,481,319
Issued in reinvestment of dividends and distributions.......... 0 197,828 0 259,508
Redeemed....................................................... (941,251) (871,850) (1,670,244) (1,131,582)
----------- ----------- ------------ ------------
Net increase (decrease).................................... 106,921 236,060 23,212 609,245
========== ========== =========== ===========
*Including undistributed net investment income of: $ 2,284,209 $ 0 $ 3,837,045 $ 0
</TABLE>
See notes to financial statements
86
<PAGE> 89
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued) For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO
----------------------- -------------------------
1996 1995 1996 1995
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................................................ $ 67,363 $ 83,934 $ 695,233 $ 269,443
Net realized gain (loss) on investments (Note 2)..................... 193,527 84,634 (9,516) 163
Net increase (decrease) in unrealized appreciation of investments.... 188,333 557,722 (170,310) 189,162
---------- ---------- ----------- -----------
Net increase in net assets resulting from operations..................... 449,223 726,290 515,407 458,768
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)....................................... 0 (83,934) 0 (269,443)
Net realized gain from investment transactions....................... 0 (84,634) 0 (163)
Distribution in excess of realized capital gains..................... 0 (4,489) 0 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders............... 0 (173,057) 0 (269,606)
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares................................. 329,611 255,820 12,146,445 9,796,475
Proceeds from dividends reinvested................................... 0 173,057 0 269,606
Net asset value of shares redeemed................................... (670,322) (570,735) (4,834,445) (2,903,581)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions........................................................... (340,711) (141,858) 7,312,000 7,162,500
---------- ---------- ----------- -----------
Net increase in net assets............................................... 108,512 411,375 7,827,407 7,351,662
Net assets beginning of year............................................. 3,272,075 2,860,700 8,555,893 1,204,231
---------- ---------- ----------- -----------
Net assets end of year*.................................................. $3,380,587 $3,272,075 $16,383,300 $ 8,555,893
========== ========== ============ ===========
SHARES ISSUED AND REDEEMED:
Issued............................................................... 19,825 16,862 1,180,708 966,948
Issued in reinvestment of dividends and distributions................ 0 11,009 0 26,406
Redeemed............................................................. (40,085) (37,322) (469,910) (281,625)
---------- ---------- ----------- -----------
Net increase (decrease)......................................... (20,260) (9,451) 710,798 711,729
========== ========== ============ ===========
*Including undistributed net investment income of: $ 67,363 $ 0 $ 695,233 $ 0
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------
1996 1995
------------- -------------
<S> <<C> <C>
FROM OPERATIONS:
Net investment income................................................ $ 5,905,585 $ 4,435,105
Net realized gain (loss) on investments (Note 2)..................... 0 0
Net increase (decrease) in unrealized appreciation of investments.... 0 0
------------- -------------
Net increase in net assets resulting from operations..................... 5,905,585 4,435,105
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)....................................... (5,905,585) (4,435,105)
Net realized gain from investment transactions....................... 0 0
Distribution in excess of realized capital gains..................... 0 0
------------- -------------
Total dividends and distributions to shareholders............... (5,905,585) (4,435,105)
------------- -------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares................................. 689,151,108 466,424,179
Proceeds from dividends reinvested................................... 5,905,585 4,435,105
Net asset value of shares redeemed................................... (660,491,512) (443,845,037)
------------- -------------
Net increase (decrease) in net assets resulting from share
transactions........................................................... 34,565,181 27,014,247
------------- -------------
Net increase in net assets............................................... 34,565,181 27,014,247
Net assets beginning of year............................................. 110,366,978 83,352,731
------------- -------------
Net assets end of year*.................................................. $ 144,932,159 $ 110,366,978
============= =============
SHARES ISSUED AND REDEEMED:
Issued............................................................... 689,151,108 466,424,179
Issued in reinvestment of dividends and distributions................ 5,905,585 4,435,105
Redeemed............................................................. (660,491,512) (443,845,037)
------------- -------------
Net increase (decrease)......................................... 34,565,181 27,014,247
============= =============
*Including undistributed net investment income of: $ 0 $ 0
</TABLE>
See notes to financial statements
87
<PAGE> 90
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
The MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized
on December 14, 1984, is composed of seven different portfolios that are, in
effect, separate investment funds: the Equity Growth Portfolio, the Equity
Income Portfolio, the Intermediate Term Bond Portfolio, the Long Term Bond
Portfolio, the Diversified Portfolio, the Government Securities Portfolio, and
the Money Market 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 with 61 days or more to maturity at time of purchase
are valued at market through the 61st day prior to maturity, based on quotations
obtained from market makers or other appropriate sources; thereafter, any
unrealized appreciation or depreciation existing on the 61st day is amortized on
a straight-line basis over the remaining number of days to maturity. Short-term
securities with 60 days or less to maturity at time of purchase 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. Securities in the Money Market Portfolio are valued at
amortized cost.
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 provided 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.
88
<PAGE> 91
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
Earnings credits received from the custodian are shown as a reduction of
total expenses.
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 divided 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 expenses (excluding interest, taxes,
brokerage fees and commissions, and extraordinary expenses) exceed 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, 1996, the fees incurred by the
Fund were $1,013,716.
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 non-affiliated Directors of the Fund for
the year ended December 31, 1996, amounted to $44,121.
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 and net realized capital gains of the
other portfolios will normally be declared and reinvested annually in additional
full and fractional shares.
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.
During the year ended December 31, 1996, the Equity Income Portfolio
increased undistributed realized gains by $12,784, decreased undistributed net
investment income by $933 and decreased additional paid-in capital by $11,851.
Those differences are primarily due to return of capital distributions received
on investments.
89
<PAGE> 92
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL STOCK
A. Authorized Capital Stock:
The Fund has 2 billion authorized shares of capital stock with a par value
of $.01 per share. 1.15 billion shares are reserved for issuance and divided
into seven classes as follows: Equity Growth Portfolio (150 million shares);
Equity Income Portfolio (150 million shares); Intermediate Term Bond Portfolio
(150 million shares); Long Term Bond Portfolio (150 million shares); Diversified
Portfolio (150 million shares); Government Securities Portfolio (150 million
shares); and Money Market Portfolio (250 million shares). The remaining shares
may be issued to any new or existing class upon approval of the Board of
Directors.
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 Annuity Plans issued by MONY.
6. FEDERAL INCOME TAX-CAPITAL LOSS CARRYFORWARD
At December 31, 1996, 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................................................. $261,216 December 31, 2004
========
Intermediate Term Bond......................................... $ 16,850 December 31, 2002
17,218 December 31, 2003
66,206 December 31, 2004
--------
$100,274
========
Government Securities.......................................... $ 9,516 December 31, 2004
========
</TABLE>
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,
1996 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- -----------
<S> <C> <C> <C>
Equity Growth Portfolio.................. Common Stock $ 810,163 $ 811,804
Equity Income Portfolio.................. Common Stock 5,114,611 6,869,438
Intermediate Term Bond Portfolio......... U.S. Government Obligations 7,021,484 5,004,844
Corporate Bonds 15,910,035 5,997,329
Long Term Bond Portfolio................. U.S. Government Obligations 18,056,295 21,311,313
Corporate Bonds 21,062,142 12,835,760
Diversified Portfolio.................... Common Stock 702,006 1,005,797
Government Securities Portfolio.......... U.S. Government Obligations 10,288,272 1,235,548
</TABLE>
90
<PAGE> 93
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25 $ 15.38
---------- ---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income....................... 0.18 0.39 0.36 0.33 0.29 0.25
Net gains (losses) on investments (both
realized and unrealized).................. 5.08 5.90 0.09 1.59 (0.46) 5.08
---------- ---------- ---------- ----------- ----------- -----------
Total from investment operations............ 5.26 6.29 0.45 1.92 (0.17) 5.33
Less distributions
Dividends (from net investment income)...... 0.00 (0.39) (0.36) (0.33) (0.29) (0.25)
Distributions (from realized capital
gains).................................... 0.00 (1.34) (0.20) (0.57) (0.04) (0.17)
Distributions (from additional paid-in
capital).................................. 0.00 0.00 0.00 0.00 (0.03) (0.04)
Distributions (in excess of realized capital
gain)..................................... 0.00 (0.04) 0.00 0.00 (0.04) 0.00
---------- ---------- ---------- ----------- ----------- -----------
Total distributions......................... 0.00 (1.77) (0.56) (0.90) (0.40) (0.46)
Net asset value, end of year.................. $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25
========= ========= ========= ========== ========== ==========
Total return................................ 20.95% 30.54% 2.15% 9.71% (0.84%) 34.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year....................... $2,154,669 $1,873,569 $1,556,536 $58,963,456 $39,979,012 $26,219,999
Average commission rate....................... $ 0.0330 N/A N/A N/A N/A N/A
Ratio of net investment income to average net
assets...................................... 0.62% 1.54% 2.11% 1.79% 1.72% 2.09%
Ratio of expenses to average net assets....... 1.22% 1.28% 0.53% 0.50% 0.53% 0.59%
Portfolio turnover rate....................... 44.17% 38.17% 55.09% 59.15% 39.93% 32.33%
<CAPTION>
1990 1989 1988 1987
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year............ $ 15.90 $ 12.78 $ 11.81 $ 12.07
---------- ---------- ---------- ----------
Income from investment operations
Net investment income....................... 0.27 0.28 0.22 0.15
Net gains (losses) on investments (both
realized and unrealized).................. (0.50) 3.66 1.20 0.93
---------- ---------- ---------- ----------
Total from investment operations............ (0.23) 3.94 1.42 1.08
Less distributions
Dividends (from net investment income)...... (0.29) (0.27) (0.21) (0.42)
Distributions (from realized capital
gains).................................... 0.00 (0.55) (0.24) (0.92)
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......................... (0.29) (0.82) (0.45) (1.34)
Net asset value, end of year.................. $ 15.38 $ 15.90 $ 12.78 $ 11.81
========= ========= ========= =========
Total return................................ (1.45%) 30.83% 12.02% 8.95%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year....................... $7,163,679 $5,672,894 $3,957,234 $2,934,478
Average commission rate....................... N/A N/A N/A N/A
Ratio of net investment income to average net
assets...................................... 2.42% 2.00% 1.70% 1.04%
Ratio of expenses to average net assets....... 0.77% 0.96% 1.04% 1.50%
Portfolio turnover rate....................... 31.21% 29.91% 9.51% 18.13%
</TABLE>
91
<PAGE> 94
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64 $ 12.70
----------- ----------- ----------- ------------ ------------ ------------
Income from investment operations
Net investment income................. 0.64 0.69 0.64 0.52 0.59 0.64
Net gains (losses) on investments
(both realized and unrealized)...... 3.23 4.45 (0.51) 1.68 0.92 1.94
----------- ----------- ----------- ------------ ------------ ------------
Total from investment operations.... 3.87 5.14 0.13 2.20 1.51 2.58
Less distributions
Dividends (from net investment
income)............................. (0.04) (0.65) (0.64) (0.52) (0.59) (0.64)
Distributions (from realized capital
gains).............................. 0.00 (0.41) (0.39) (0.81) 0.00* 0.00*
----------- ----------- ----------- ------------ ------------ ------------
Total distributions................. (0.04) (1.06) (1.03) (1.33) (0.59) (0.64)
Net asset value, end of year............ $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64
========== ========== ========== =========== =========== ===========
Total return........................ 19.76% 33.12% 0.78% 14.14% 10.31% 20.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................. $18,572,347 $18,091,035 $16,204,925 $151,330,311 $121,540,392 $118,114,947
Average commission rate................. $ 0.0593 N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets.................... 2.79% 3.54% 3.53% 3.22% 3.68% 4.46%
Ratio of expenses to average net
assets................................ 0.55% 0.56% 0.48% 0.46% 0.46% 0.49%
Portfolio turnover rate................. 29.37% 26.80% 32.48% 28.48% 35.62% 25.84%
<CAPTION>
1990 1989 1988 1987
----------- ---------- ---------- ----------
<S> <<C> <C> <C> <C>
Net asset value, beginning of year...... $ 14.26 $ 12.67 $ 12.03 $ 13.03
----------- ---------- ---------- ----------
Income from investment operations
Net investment income................. 0.54 0.64 0.70 0.44
Net gains (losses) on investments
(both realized and unrealized)...... (1.50) 2.20 1.64 0.54
----------- ---------- ---------- ----------
Total from investment operations.... (0.96) 2.84 2.34 0.98
Less distributions
Dividends (from net investment
income)............................. (0.60) (0.64) (0.66) (0.77)
Distributions (from realized capital
gains).............................. 0.00 (0.61) (1.04) (1.21)
----------- ---------- ---------- ----------
Total distributions................. (0.60) (1.25) (1.70) (1.98)
Net asset value, end of year............ $ 12.70 $ 14.26 $ 12.67 $ 12.03
========== ========= ========= =========
Total return........................ (6.73%) 22.42% 19.45% 7.52%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................. $99,878,151 $6,185,876 $5,054,514 $2,945,497
Average commission rate................. N/A N/A N/A N/A
Ratio of net investment income to
average net assets.................... 5.39% 4.66% 5.24% 3.02%
Ratio of expenses to average net
assets................................ 0.52% 0.88% 0.91% 1.50%
Portfolio turnover rate................. 8.89% 19.55% 22.70% 13.73%
</TABLE>
- ---------------
* Less than $.01 per share.
92
<PAGE> 95
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,
---------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.62 0.63 0.60 0.47 0.59 0.77
Net gains (losses) on investments
(both realized and unrealized)..... (0.23) 0.82 (0.76) 0.34 0.11 0.71
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... 0.39 1.45 (0.16) 0.81 0.70 1.48
Less distributions
Dividends (from net investment
income)............................ 0.00 (0.63) (0.60) (0.47) (0.59) (0.77)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 (0.16) 0.00* 0.00
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 0.00 (0.18)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................ 0.00 (0.63) (0.60) (0.63) (0.59) (0.95)
Net asset value, end of year........... $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22
========== ========== ========== ========== ========== ==========
Total return....................... 3.69% 14.82% (1.52%) 7.84% 6.85% 15.27%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $40,045,253 $37,519,833 $32,283,693 $31,326,168 $20,911,161 $22,005,519
Ratio of net investment income to
average net assets................... 5.88% 6.10% 5.66% 5.26% 6.24% 7.88%
Ratio of expenses to average net
assets............................... 0.48% 0.49% 0.52% 0.52% 0.53% 0.51%
Portfolio turnover rate................ 33.59% 32.07% 25.41% 50.61% 62.27% 55.03%
<CAPTION>
1990 1989 1988 1987
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 9.85 $ 9.63 $ 9.93 $ 12.15
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.84 0.90 0.86 0.89
Net gains (losses) on investments
(both realized and unrealized)..... (0.16) 0.22 (0.29) (0.88)
----------- ----------- ----------- -----------
Total from investment operations... 0.68 1.12 0.57 0.01
Less distributions
Dividends (from net investment
income)............................ (0.84) (0.90) (0.87) (1.59)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 (0.64)
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................ (0.84) (0.90) (0.87) (2.23)
Net asset value, end of year........... $ 9.69 $ 9.85 $ 9.63 $ 9.93
========== ========== ========== ==========
Total return....................... 6.90% 11.63% 5.74% 0.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $20,260,361 $20,419,237 $23,192,883 $25,217,761
Ratio of net investment income to
average net assets................... 8.52% 8.67% 8.43% 8.18%
Ratio of expenses to average net
assets............................... 0.54% 0.60% 0.55% 0.60%
Portfolio turnover rate................ 20.06% 30.99% 24.77% 32.23%
</TABLE>
- ---------------
* Less than $.01 per share.
93
<PAGE> 96
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,
---------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.79 0.74 0.84 0.50 0.81 0.72
Net gains (losses) on investments
(both realized and unrealized)..... (0.83) 2.41 (1.58) 1.09 0.16 1.12
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... (0.04) 3.15 (0.74) 1.59 0.97 1.84
Less distributions
Dividends (from net investment
income)............................ 0.00 (0.74) (0.84) (0.50) (0.74) (0.72)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 (0.23) 0.00* (0.37)
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 (0.07) (0.19)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................ 0.00 (0.74) (0.84) (0.73) (0.81) (1.28)
Net asset value, end of year........... $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03
========== ========== ========== ========== ========== ==========
Total return....................... (.31%) 30.04% (6.14%) 14.21% 8.79% 17.57%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $62,098,817 $62,017,889 $44,012,329 $63,044,619 $29,564,159 $23,207,734
Ratio of net investment income to
average net assets................... 6.40% 6.58% 6.45% 5.69% 7.71% 8.12%
Ratio of expenses to average net
assets............................... 0.46% 0.48% 0.49% 0.48% 0.51% 0.51%
Portfolio turnover rate................ 59.78% 79.45% 110.19% 45.93% 0.17% 63.68%
<CAPTION>
1990 1989 1988 1987
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 10.70 $ 9.97 $ 10.28 $ 12.87
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.90 0.96 0.96 0.92
Net gains (losses) on investments
(both realized and unrealized)..... (0.23) 0.73 (0.10) (1.11)
----------- ----------- ----------- -----------
Total from investment operations... 0.67 1.69 0.86 (0.19)
Less distributions
Dividends (from net investment
income)............................ (0.90) (0.96) (1.17) (1.58)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 (0.82)
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................ (0.90) (0.96) (1.17) (2.40)
Net asset value, end of year........... $ 10.47 $ 10.70 $ 9.97 $ 10.28
========== ========== ========== ==========
Total return....................... 6.26% 16.95% 8.37% (1.48%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $20,532,817 $20,770,552 $23,840,760 $26,798,016
Ratio of net investment income to
average net assets................... 8.72% 8.54% 9.04% 8.44%
Ratio of expenses to average net
assets............................... 0.53% 0.64% 0.54% 0.60%
Portfolio turnover rate................ 27.49% 36.00% 42.79% 128.24%
</TABLE>
- ---------------
* Less than $.01 per share.
94
<PAGE> 97
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year........ $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13 $ 11.75
---------- ---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income................... 0.36 0.43 0.38 0.37 0.42 0.53
Net gains (losses) on investments (both
realized and unrealized).............. 1.91 3.03 (0.24) 1.01 (0.29) 1.86
---------- ---------- ---------- ----------- ----------- -----------
Total from investment operations...... 2.27 3.46 0.14 1.38 0.13 2.39
Less distributions
Dividends (from net investment
income)............................... 0.00 (0.43) (0.38) (0.37) (0.42) (0.53)
Distributions (from realized capital
gains)................................ 0.00 (0.43) (0.09) (0.18) (0.20) (0.48)
Distributions (in excess if realized capital gain) .. 0.00 (0.02) 0.00 0.00* 0.00* 0.00
---------- ---------- ---------- ----------- ----------- -----------
Total distributions................... 0.00 (0.88) (0.47) (0.55) (0.62) (1.01)
Net asset value, end of year.............. $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13
========= ========= ========= ========== ========== ==========
Total return.......................... 14.44% 26.32% 1.03% 10.92% 0.99% 20.34%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................... $3,380,587 $3,272,075 $2,860,700 $34,076,498 $22,704,133 $16,829,653
Average commission rate................... $ 0.0412 N/A N/A N/A N/A N/A
Ratio of net investment income to average
net assets.............................. 2.02% 2.68% 3.19% 3.13% 3.68% 4.72%
Ratio of expenses to average net assets... 0.91% 0.95% 0.57% 0.53% 0.57% 0.60%
Portfolio turnover rate................... 24.43% 27.69% 51.38% 28.98% 26.44% 22.03%
<CAPTION>
1990 1989 1988 1987
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year........ $ 12.27 $ 11.26 $ 11.00 $ 12.18
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................... 0.70 0.75 0.71 0.69
Net gains (losses) on investments (both
realized and unrealized).............. (0.40) 1.74 0.36 (0.21)
----------- ----------- ----------- -----------
Total from investment operations...... 0.30 2.49 1.07 0.48
Less distributions
Dividends (from net investment
income)............................... (0.71) (0.75) (0.70) (1.33)
Distributions (from realized capital
gains)................................ (0.11) (0.73) (0.11) (0.33)
Distributions (in excess if realized cap 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................... (0.82) (1.48) (0.81) (1.66)
Net asset value, end of year.............. $ 11.75 $ 12.27 $ 11.26 $ 11.00
========== ========== ========== ==========
Total return.......................... 2.44% 22.11% 9.73% 3.94%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................... $10,373,263 $12,319,454 $16,050,117 $13,039,577
Average commission rate................... N/A N/A N/A N/A
Ratio of net investment income to average
net assets.............................. 6.04% 5.86% 6.10% 5.35%
Ratio of expenses to average net assets... 0.63% 0.67% 0.62% 0.75%
Portfolio turnover rate................... 11.49% 8.06% 4.46% 12.31%
</TABLE>
- ---------------
* Less than $.01 per share.
95
<PAGE> 98
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,
1996 1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............... $ 10.21 $ 9.51 $ 9.72 $ 9.66 $ 10.70 $ 10.00
------------ ------------ ------------ ------------ ------------ -------------
Income from investment
operations
Net investment income... 0.45 0.34 0.05 0.52 1.00 0.27
Net gains (losses) on
investments (both
realized and
unrealized).......... (0.08) 0.70 (0.21) 0.27 (0.25) 0.70
------------ ------------ ------------ ------------ ------------ -------------
Total from investment
operations......... 0.37 1.04 (0.16) 0.79 0.75 0.97
Less distributions
Dividends (from net
investment income)... 0.00 (0.34) (0.05) (0.52) (1.00) (0.27)
Distributions (from
realized capital
gains)............... 0.00 (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 0.00
------------ ------------ ------------ ------------ ------------ -------------
Total
distributions...... 0.00 (0.34) (0.05) (0.73) (1.79) (0.27)
Net asset value, end of
period.................. $ 10.58 $ 10.21 $ 9.51 $ 9.72 $ 9.66 $ 10.70
========== ========= ========= ========== ========== ===========
Total return......... 3.62% 10.89% (2.68%)+++ 8.18% 7.01% 9.70%++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period.................. 16,383,300.. $ 8,555,893 $ 1,204,231 $ 20,036,097 $ 19,096,791 $42,235,195
Ratio of net investment
income to average net
assets.................. 5.59% 6.10% 5.43%+++ 5.06% 6.25% 5.75%+
Ratio of expenses to
average net assets...... 0.55% 0.74% 0.57%+++ 0.53% 0.50% .43%+
Portfolio turnover rate... 12.52% 0.28% 7.82% 41.01% 28.28% 151.81%
</TABLE>
- ---------------
* Less than $.01 per share.
** Commencement of operations.
+ Annualized
++ Average Annual
+++ Annualized since Portfolio was dormant from June 24, 1994 to November 18,
1994.
96
<PAGE> 99
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
------------ ------------ ----------- ----------- ----------- -----------
<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 0.05 0.04 0.03 0.03 0.06
Less distributions
Dividends (from net investment
income)............................ (0.05) (0.05) (0.04) (0.03) (0.03) (0.06)
------------ ------------ ----------- ----------- ----------- -----------
Net asset value, end of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== ========== ========== ========== ==========
Total return................... 5.00% 5.50% 3.82% 2.75% 3.31% 5.60%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $144,932,159 $110,366,978 $83,352,731 $65,474,860 $50,892,593 $34,642,974
Ratio of net investment income to
average net assets................... 4.95% 5.30% 3.77% 2.62% 3.17% 5.80%
Ratio of expenses to average net
assets............................... 0.45% 0.46% 0.49% 0.46% 0.48% 0.54%
<CAPTION>
1990 1989 1988 1987
----------- ----------- ---------- ----------
<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................ 0.07 0.08 0.07 0.05
Less distributions
Dividends (from net investment
income)............................ (0.07) (0.08) (0.07) (0.05)
----------- ----------- ---------- ----------
Net asset value, end of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= =========
Total return................... 7.22% 8.20% 6.56% 5.34%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $26,924,389 $10,817,623 $4,552,241 $2,883,644
Ratio of net investment income to
average net assets................... 7.63% 8.06% 6.77% 5.36%
Ratio of expenses to average net
assets............................... 0.54% 0.92% 1.08% 1.50%
</TABLE>
97
<PAGE> 100
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
MONY Series Fund, Inc. (comprising the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified, Government Securities and
Money Market Portfolios), including the portfolios of investments, as of
December 31, 1996, 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 each of the five years in the period ended December 31,
1996 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 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, 1996, 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
each of the respective portfolios constituting the MONY Series Fund, Inc. as of
December 31, 1996, 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 14, 1997
98
<PAGE> 101
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
Chase Manhattan Bank
4 New York Plaza
New York, New York 10004
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>
99
<PAGE> 102
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The objective of Enterprise Accumulation Trust Equity Portfolio is to seek
long term capital appreciation through investment in a diversified portfolio of
equity securities selected on the basis of a value-oriented approach to
investing.
The Equity Portfolio had an excellent year in 1996, providing a total
return of 25.2%. This performance exceeded the total return of 22.9% 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.
Through the consistent application of our value disciplines, the Portfolio
has produced above-market returns over extended periods. For the five years
ended December 31, 1996, the Portfolio's average annual return of 18.0% was well
ahead of the 15.2% average annual return of the S&P 500. Since its inception on
August 1, 1988, the Portfolio has generated an average annual return of 16.7%,
exceeding the 16.0% average annual return of the S&P 500.
OpCap achieved these results by remaining disciplined in our value approach
even as the stock market advanced to new highs. The stocks owned by the
Portfolio had an average price-earnings ratio of 14.2 at the end of 1996, a
significant discount from the price-earnings ratio of 19.5 for the S&P 500.
Despite this discount, the companies in the Portfolio generated what we believe
to be high and potentially sustainable levels of earnings and cash flow. By
investing in quality, undervalued businesses, OpCap seeks to control risk and
outperform the market over time. As we enter the new year, we believe the
quality of the businesses we own, their low relative valuations and the ability
of company managements to maximize shareholder returns may help limit risk if
the market declines and may provide significant opportunity for reward.
The Portfolio owns a diverse group of undervalued companies with superior
business characteristics. A "superior" company, in our view, has a powerful
competitive position, a well-thought-out business strategy, excellent earnings
and high cash flow, and a shareholder-oriented management. OpCap continues to
find a number of undervalued quality companies in the insurance, banking and
miscellaneous financial services sector, which represented as of year-end about
one-third of the Portfolio's net assets. Each of the financial companies in the
Portfolio has a unique business franchise with competitive advantages, such as
low-cost distribution, highly automated processing, dominant market share and/or
high customer retention. In all cases, company management is focused on using
the company's cash flow to increase shareholder value. Business results of these
companies continue to improve regardless of the interest rate environment.
As of December 31, 1996, assets were allocated 86% to common stocks and 14%
to cash and cash equivalents. The Portfolio's five largest equity positions at
the end of the year were Ace, Ltd., a Bermuda-based provider of excess directors
and officers liability insurance, representing 4.9% of the Portfolio's net
assets: EXEL, Ltd., a strongly capitalized specialty insurance company, also
based in Bermuda, 4.4% of net assets; Wells Fargo & Company, a leading bank in
the Western United States, 3.8% of net assets; Caterpillar, Inc., which
manufacturers earth-moving equipment and diesel engines and other products, 3.5%
of net assets; and LucasVarity PLC, which manufactures automotive components,
diesel engines and other products, 3.1% of net assets.
Major industry positions were in the insurance sector, 22.4% of the
Portfolio's net assets; transportation, 7.2% of net assets; banking, 6.8% of net
assets; aerospace, 5.7% of net assets; and miscellaneous financial services,
5.5% of net assets.
100
<PAGE> 103
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST EQUITY PORTFOLIO FROM INCEPTION (8/1/88)
THROUGH 12/31/96 AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) EQUITY PORTFOLIO 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
12/31/96 36721 34987
</TABLE>
* Past Performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
The line graph above does not reflect Variable Account expenses.
SMALL CAP PORTFOLIO
GAMCO INVESTORS, INC.
RYE, NEW YORK
The objective of Enterprise Accumulation Trust Small Cap Portfolio is to
seek capital appreciation through investments in a diversified portfolio
consisting primarily of equity securities of companies with market
capitalizations of under $1 billion.
OpCap Advisors was the investment adviser to Enterprise Accumulation Trust
Small Cap Portfolio from inception on August 1, 1988 through May 31, 1996. GAMCO
Investors became manager of the Portfolio on June 1, 1996.
GAMCO's focus is on free cash flow. GAMCO believes free cash flow is the
best barometer of a business' value. Rising free cash flow often foreshadow net
earnings improvement. GAMCO also looks at long-term earnings trends. In
addition, GAMCO analyzes on and off balance sheet assets and liabilities. GAMCO
wants to know everything that will add to or detract from private market value
estimates. Finally, GAMCO looks for a catalyst: something happening in the
company's industry or indigenous to the company itself that may surface value.
For the twelve months ended December 31, 1996, the Small Cap Portfolio had
a total return of 11.2%, below the total return of 16.5% of the Russell 2000
Index, an unmanaged index composed of small stocks traded on the NASDAQ, the New
York and American Stock Exchanges. For five years ended December 31, 1996, the
Portfolio's average annual return was 12.6% versus the 15.6% return of the
Russell 2000 Index. Since inception August 1, 1988 through December 31, 1996 the
Small Cap Portfolio had an average annual total return of 13.6% compared with
13.1% for the Russell 2000 Index.
Media and communication stocks remain undervalued, as investors are
focusing on companies with visible earnings growth. Regulatory changes as well
as strong cash flows may benefit many of these companies in future quarters.
Cable stocks, for example, declined on fear of competition from direct broadcast
satellite but may enjoy strong cash flows and revenue streams from such services
as Internet access.
101
<PAGE> 104
Top holdings in the Portfolio at year end included Culbro Corporation,
Coltec Industries, Inc., Chris Craft Industries, Inc., Tele Communications,
Inc., and Precision Castparts Corporation, with major industry concentrations in
the broadcasting/media, aerospace, automotive, machinery and telecommunication
sectors.
GAMCO will continue to focus on value. GAMCO favors industries and
individual companies in the early stages of sustainable earnings uptrends and
other fundamentally attractive opportunities that participated only marginally
in the 1996 bull market. Aerospace component manufacturers may experience
superior earnings gains for the next three to five years as airlines throughout
the world continue to rebuild and refurbish their fleets. Auto aftermarket
companies are positioned so that they may grow earnings as the economy and new
car sales slow. As Personal Communication Services (PCS) systems come on-line in
the year ahead, cellular telephone companies, which have been under the cloud of
future competition from PCS, will have an opportunity to demonstrate the long
term viability of what GAMCO believes will remain a good growth business.
Entertainment software and cable network stocks, which were panned in 1996, may
get more favorable reviews from investors in the year ahead.
Finally, and perhaps most importantly for 1997, corporate restructurings,
in the form of mergers and sales and spin-offs of assets, may continue at a
feverish pace. There is strong global appetite for extending product lines and
distribution systems via acquisitions. The world is awash in liquidity and stock
is an increasingly valuable currency. In response, corporate managements that
hope to remain independent may be under pressure to surface the value of their
businesses by selling underperforming divisions, spinning off undervalued assets
and repurchasing shares. Deals and corporate events of this nature may trigger
some of the biggest small company stock advances in 1997.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST SMALL CAP PORTFOLIO FROM INCEPTION (8/1/88)
THROUGH 12/31/96 AND TOTAL RETURN ON RUSSELL 2000 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) SMALL CAP 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
12/31/96 29231 28082
</TABLE>
* Past Performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
The line graph above does not reflect Variable Account expenses.
102
<PAGE> 105
MANAGED PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The objective of Enterprise Accumulation Trust Managed Portfolio is to seek
growth of capital over time through investment in a portfolio consisting of
common stocks, bond and cash equivalents, the percentages of which will vary
based on management's assessments of relative investment values.
Continuing its solid long-term performance, the Managed Portfolio provided
a total return of 23.5% in 1996. This return was slightly ahead of the total
return of 22.9% 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.
The Portfolio has been a consistently strong performer over time. For the
five years ended December 31, 1996, the Portfolio delivered an average annual
return of 19.5%, handily surpassing the 15.2% average annual return of the S&P
500. Since its inception on August 1, 1988, the Portfolio has provided an
average annual return of 20.3%, surpassing the 16.1% return for the S&P 500.
The Portfolio invests in stocks, bonds and cash equivalents, with a bias
toward stocks. The Portfolio owns undervalued businesses with high cash flow.
OpCap Advisors investment style specifically attempts to avoid forecasting the
stock market or the economy. Instead, OpCap Advisors focuses on individual
companies and tries to understand where their businesses are going over the next
several years, not on where the market is heading in the next quarter.
The Portfolio had a cash position of 10% at year-end. In addition to its
cash position, the Portfolio's assets were allocated 89% to common stocks and
securities convertible into common stocks and 1% to Treasury bonds and notes.
The Portfolio's five largest positions at year-end were Wells Fargo &
Company, a leading bank in the Western United States, representing 7.6% of net
assets; McDonnell Douglas Corporation, the nation's largest manufacturer of
military aircraft and an important competitor in commercial aircraft, 5.9% of
net assets; Citicorp, a leading bank and financial services company, 5.3% of net
assets; Federal Home Loan Mortgage Corporation (Freddie Mac), the second largest
insurer of home mortgages in the United States, 4.8% of net assets; and DuPont
(E.I.) de Nemours & Company, a major industrial company operating in chemicals,
fibers, polymers, petroleum and diversified business, 4.4% of net assets. OpCap
Advisors remains comfortable with the Portfolio's largest equity holdings and is
prepared to buy more shares on price weakness.
103
<PAGE> 106
Major industry positions were in the banking sector, 14.5% of the
Portfolio's net assets; miscellaneous financial services, 11.6% of net assets;
aerospace, 8.4% of net assets; chemicals, 7.5% of net assets; and machinery,
6.9% of net assets.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST MANAGED PORTFOLIO FROM INCEPTION (8/1/88)
THROUGH 12/31/96 AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) MANAGED 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 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 28466
12/31/96 47433 34987
</TABLE>
* Past Performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
The line graph above does not reflect Variable Account expenses.
INTERNATIONAL GROWTH PORTFOLIO
BRINSON PARTNERS, INC.
CHICAGO, ILLINOIS
The objective of Enterprise Accumulation Trust International Growth
Portfolio is to seek capital appreciation, primarily through a diversified
portfolio of non-U.S. equity securities.
For 1996, the Portfolio returned 12.7% versus the EAFE Index return of
6.1%. The EAFE Index is an unmanaged index composed of stocks representing the
stock markets of Europe, Australia, New Zealand and the Far East. Since November
30, 1994, through December 31, 1996, the Portfolio returned an average annual
return of 13.3% versus the EAFE Index return of 8.6%. Since inception on
November 18, 1994, the Portfolio has generated average annual returns of 12.3%
Throughout 1996, Enterprise Accumulation Trust International Growth
Portfolio benefited from its active strategies in currency allocation and
security selection. Market allocation slightly detracted from performance during
the year. The underweight in the Japanese yen, Swiss franc, German deutschemark
and offsetting overweights primarily in the U.S. dollar, were all successful
strategies. Stock selection was very strong within the Japanese equity market.
Honda and Toyota hit record highs in Japan in 1996. Underweighting the
financials and overweighting the pharmaceuticals, precision instruments and
electrical machinery industries all contributed to portfolio returns. The
Portfolio's overweight in cash and underweight market positions in Sweden, Hong
Kong and Switzerland detracted slightly from performance. This was partially
offset by positive results from overweights in the Netherlands, Spain, and
Belgium and underweights in Japan and Singapore.
104
<PAGE> 107
At year-end the Portfolio's largest holdings included Royal Dutch Petroleum
(Netherlands), Telecom Corp. of NZ (New Zealand), Matsushita Electric Industrial
(Japan), Unilever (United Kingdom and Netherlands), and British Telecom (United
Kingdom). Major country concentrations focused on Japan, United Kingdom, France,
Germany and the Netherlands.
While 1997 economic growth expectations are picking up for most countries,
several markets are not expected to maintain last year's strong growth into
1997. The inflation outlook remains relatively benign for most developed
markets. Despite an environment of good Gross Domestic Product growth, the
combination of fiscal restraint and downward wage pressures may help to keep
inflation under control.
The Portfolio continues to target a 5% strategic cash position, reflecting
our view that non-U.S equity markets are overpriced. The Japanese equity market
is notably more overpriced than most of the other non-U.S. markets. Given
Brinson's valuation analysis and fundamental considerations, the Portfolio is
underweight in Japan by 6.5%.
The other non-U.S. equity markets (excluding Japan) are overweight by 1.5%.
Brinson continues to emphasize New Zealand, Australia and, in Europe, France,
Netherlands, Belgium and Finland. The Portfolio remains modestly overweight in
Spain and the United Kingdom and neutrally positioned in Italy. The outlook for
German earnings has become more favorable. Throughout Europe, there is growing
evidence of an awareness by company managements of shareholder value. This has
been pronounced in Germany, where a number of companies have started to
restructure.
Canada has enjoyed a period of declining interest rates, an improving
fiscal picture and a somewhat undervalued Canadian dollar that has supported its
exporters. At this point, however, Brinson views interest rates as being
unsustainably low and currency at or close to fair value. Brinson's fundamental
analysis indicates that this market has become more expensive. The Portfolio is
invested, but quite underweight, in Hong Kong and Switzerland with lesser
underweights held in Canada and Malaysia. Currency strategy continues to favor
the U.S. dollar over the less attractive Japanese yen, German deutschemark,
Swiss franc and French franc.
As with all international growth funds, Enterprise Accumulation Trust
International Growth Portfolio carries additional risks associated with possibly
less stable foreign securities and currencies, lack of uniform accounting
standards and political instability.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST INTERNATIONAL GROWTH PORTFOLIO FROM INCEPTION
(11/30/94) THROUGH 12/31/96 AND TOTAL RETURN ON EAFE INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) INTERNATIONAL PORTFOLIO EAFE
<S> <C> <C>
11/30/94 10000 10000
12/31/94 10040 10063
12/31/95 11510 11191
12/31/96 12967 11868
</TABLE>
* Past Performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
The line graph above does not reflect Variable Account expenses.
105
<PAGE> 108
HIGH-YIELD BOND PORTFOLIO
CAYWOOD-SCHOLL CAPITAL MANAGEMENT
SAN DIEGO, CALIFORNIA
The objective of Enterprise Accumulation Trust High-Yield Bond Portfolio is
to seek maximum current income, primarily from debt securities that are rated Ba
or lower by Moody's Investors Service or BB or lower by Standard & Poor's
Corporation.
The Portfolio returned 12.9% for 1996, versus 8.9% for the Lehman Brothers
BB Index, an unmanaged index composed of all issues rated below Baa by Moody's
and all issues rated BB by Standard & Poors. Since November 30, 1994 through
December 31, 1996, the High-Yield Bond Portfolio had an average annual total
return of 14.7% versus the Lehman Brothers BB Index which returned 15%. Since
inception on November 18, 1994, the Portfolio has generated average annual
returns of 14.1%.
Five elements helped the high yield bond market, and specifically the
High-Yield Bond Portfolio, to post solid returns in 1996. Investors poured $16.0
billion of new money into the high-yield market in 1996 which helped keep the
market technicals favorably balanced through much of the year. Secondly, for the
second year in a row the investment grade buyer was evident in the high-yield
market. With spreads on investment grade bonds remaining historically tight,
corporate fixed income buyers participated heavily in many BB new issues. In
addition, new issues for 1996 totaled $72 billion, more than doubling the $31
billion issued in 1995. The quality of the new issues continued to deteriorate,
with approximately 72% of the new issuance rated single B or lower. The
telecommunications sector dominated the new issuance, accounting for 28% of the
merchandise. Also, a receptive initial public offering environment and/or strong
stock market generally is supportive to the high-yield market for it allowed
issuers to improve their balance sheet through issuance of equity. This
potential financial flexibility reduces credit risk. Finally, defaults were
surprisingly light in 1996 with 16 defaults representing $4.2 billion. This
compares to 30 issues and $8.2 billion in 1995. Defaults as a percent of the
market have been less than 3% for five consecutive years. This trend has
bolstered the legitimacy of the high-yield market as an asset class for pension
funds and fiduciary investors.
In 1997 high-yield bond performance may be influenced primarily by three
factors. Credit risk is expected to increase somewhat and the yield advantage of
high-yield bonds over treasuries may also increase modestly. Overall growth of
corporate profitability may moderate with businesses experiencing more
difficulty in passing along production cost increases. Next, new issuance for
1997 may decline to $40 to $50 billion due to a smaller calendar of offerings by
the telecommunications industry. Finally, capital flows into the high-yield
market may continue to grow contingent on the absolute yield advantage and
return over treasuries and the perceived credit risk. Interest among pension
funds and foundations has increased. Sales of new mutual fund shares has brought
the sector to prominence, owning approximately 20% of the universe. During the
relatively low interest rates of the past several years, the insurance industry
has also remained a steady buyer of high-yield bonds. Reinvestment of coupons
has been a stabilizing factor which may potentially repeat in 1997.
The economic and monetary climate for high-yield bonds may be somewhat less
favorable in 1997 while still offering substantial relative performance
opportunities over treasuries and investment grade bonds. The relative
performance of high-yield bonds in 1997 may not be quite as outstanding, as in
1996, but still very rewarding. High-yield bonds may not perform as well in
relative terms if interest rates were to substantially decline. The high-yield
sector has historically performed very well during periods of moderately rising
interest rates.
Managing this sector in 1997 for competitive returns could be more
difficult, requiring greater scrutiny of credit quality. Caywood-Scholl's
investment policy of maintaining broad diversification among favorable
industries and issuers should help the Portfolio in seeking to capture solid
risk adjusted returns in this investment environment.
106
<PAGE> 109
Like all investments in high-yield bond funds, an investment in the
High-Yield Bond Portfolio carries an increased risk that issuers of securities
in which the High-Yield Bond Portfolio invests may default in the payment of
principal and interest as compared to the risk of such defaults in other Income
Portfolios. In addition, an investment in the High-Yield Bond Portfolio may be
subject to certain other risks relating to the market price, relative liquidity
in the secondary market and sensitivity to interest rate and economic changes on
the noninvestment grade securities in which the High-Yield Bond Portfolio
invests that are higher than may be associated with higher rated, investment
grade securities.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST HIGH-YIELD BOND PORTFOLIO FROM INCEPTION
(11/30/94)
THROUGH 12/31/96 AND TOTAL RETURN ON LEHMAN BB INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) HIGH-YIELD BOND LEHMAN BB
<S> <C> <C>
11/30/94 10000 10000
12/31/94 10111 10079
12/31/95 11788 12280
12/31/96 13312 13376
</TABLE>
* Past Performance is not predictive of future performance.
Assumes reinvestment of all dividends and distributions.
The line graph above does not reflect Variable Account expenses.
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.
107
<PAGE> 110
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 86.06% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 5.72%
AlliedSignal Inc. 45,920 $ 3,076,640
Lockheed Martin Corporation 86,000 7,869,000
McDonnell Douglas Corporation 110,506 7,072,384
-------------------
18,018,024
AUTOMOTIVE -- 3.10%
LucasVarity PLC 257,000 9,766,000
BANKING -- 6.76%
Citicorp 90,544 9,326,032
Wells Fargo & Company 44,362 11,966,649
-------------------
21,292,681
BROADCASTING -- 0.07%
TCI Satellite Entertainment Inc. 21,000 207,375
CABLE -- 1.08%
Tele Communications Inc.* 260,000 3,396,250
CHEMICALS -- 3.20%
Du Pont (E. I.) de Nemours &
Company 60,000 5,662,500
Hercules Inc. 102,202 4,420,236
-------------------
10,082,736
CONGLOMERATES -- 1.43%
General Electric Company 45,544 4,503,163
CONSUMER PRODUCTS -- 2.42%
Avon Products Inc. 72,756 4,156,187
Mattel Inc. 124,875 3,465,281
-------------------
7,621,468
DRUGS & MEDICAL PRODUCTS -- 3.52%
Becton, Dickinson & Company 186,158 8,074,603
Warner-Lambert Company 40,252 3,018,900
-------------------
11,093,503
ELECTRONICS -- 3.13%
Adaptec Inc. 100,000 4,000,000
Arrow Electronics Inc.* 78,462 4,197,717
Electronic Arts Inc.* 55,000 1,646,563
-------------------
9,844,280
ENERGY -- 1.48%
Triton Energy Ltd.* 96,004 4,656,194
HEALTH CARE -- 4.27%
Columbia/HCA Healthcare
Corporation 160,000 6,520,000
Ornda Healthcorp 22,000 643,500
Tenet Healthcare Corporation* 287,000 6,278,125
-------------------
13,441,625
INSURANCE -- 22.36%
Ace Ltd. 257,000 15,452,125
AFLAC Inc. 185,128 7,914,222
American International Group
Inc. 40,612 4,396,249
Everest Reinsurance Holdings 175,000 5,031,250
EXEL Ltd. 372,348 14,102,680
General Re Corporation 25,000 3,943,750
Mid Ocean Ltd. 150,000 7,875,000
Progressive Corporation (Ohio) 76,421 5,148,865
Renaissance Holdings Ltd. 150,000 4,950,000
Transamerica Corporation 20,126 1,589,954
-------------------
70,404,095
MACHINERY -- 5.26%
Caterpillar Inc. 148,000 11,137,000
Tenneco Inc. 120,000 5,415,000
-------------------
16,552,000
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
-----------------------------------------
<S> <C> <C>
METALS & MINING -- 0.47%
Freeport McMoRan Copper & Gold
(Class B) 49,431 $ 1,476,751
MISC. FINANCIAL SERVICES -- 5.53%
Countrywide Credit Industries
Inc. 316,088 9,048,019
Federal Home Loan Mortgage
Corporation 76,045 8,374,456
-------------------
17,422,475
PAPER & FOREST PRODUCTS -- 0.41%
Champion International
Corporation 30,000 1,297,500
PRINTING & PUBLISHING -- 1.99%
Donnelley R R & Sons Company 200,000 6,275,000
RESTAURANTS -- 1.98%
McDonalds Corporation 138,000 6,244,500
RETAIL -- 2.89%
May Department Stores Company 194,712 9,102,786
TELECOMMUNICATIONS -- 1.66%
Sprint Corporation 131,000 5,223,625
TRANSPORTATION -- 7.15%
AMR Corporation* 89,000 7,843,125
Canadian Pacific Limited 155,000 4,107,500
Carnival Corporation 210,000 6,930,000
CSX Corporation 86,000 3,633,500
-------------------
22,514,125
UTILITIES -- 0.18%
El Paso Natural Gas Company 11,160 563,580
-------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $200,062,464) 270,999,736
- ----------------------------------------------------------------------------
COMMERCIAL PAPER -- 13.73%
- ----------------------------------------------------------------------------
Ford Motor Credit Company
5.40% due 01/23/97 $13,000,000 12,957,100
Norwest Financial Inc.
5.35% due 01/15/97 10,340,000 10,318,487
Deere (John) Capital Corporation
5.38% due 01/22/97 10,000,000 9,968,617
Household Finance Corporation
5.40% due 01/08/97 10,000,000 9,989,500
-------------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $43,233,704) 43,233,704
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.73%
- ----------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.75% due 01/02/97
Collateral: U.S. Treasury Note
$5,560,000, 5.625% due 11/30/98
Value $5,565,805 5,455,000 5,455,000
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $5,455,000) 5,455,000
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $248,751,168) $ 319,688,440
OTHER ASSETS LESS LIABILITIES -- (1.52)% (4,781,508)
-------------------
NET ASSETS 100% $ 314,906,932
===============================================================
</TABLE>
(*) Non-income producing
See accompanying notes to financial statements.
108
<PAGE> 111
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 94.97% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.55%
Ackerley Inc. 130,000 $ 1,527,500
Katz Media Group Inc.* 130,000 1,462,500
-------------------
2,990,000
AEROSPACE -- 11.40%
Coltec Industries Inc.* 300,000 5,662,500
Curtiss Wright Corporation 30,000 1,511,250
Gencorp Inc. 260,000 4,712,500
Moog Inc.* 24,000 561,000
Precision Castparts Corporation 100,000 4,962,500
Sequa Corporation (Class A) 25,000 981,250
Sequa Corporation (Class B) 20,000 1,000,000
SPS Technologies Inc. 40,000 2,570,000
-------------------
21,961,000
AUTOMOTIVE -- 7.34%
Clarcor Inc. 125,000 2,765,625
Echlin Inc. 70,000 2,213,750
Federal Mogul Corporation 60,000 1,320,000
Navistar International
Corporation Inc.* 100,000 912,500
Scheib Earl Inc. 85,000 595,000
Standard Motor Products Inc. 160,000 2,220,000
Wynns International Inc. 130,000 4,111,250
-------------------
14,138,125
BROADCASTING -- 10.76%
BET Holdings Inc.* 60,000 1,725,000
BHC Communications Inc. 10,000 1,013,750
Chris Craft Industries Inc. 130,000 5,443,750
Echostar Communications
Corporation 16,000 352,000
Gaylord Entertainment Company 88,000 2,013,000
Gray Communications Systems Inc. 30,000 566,250
Gray Communications Systems Inc.
(Class B) 60,000 1,020,000
HSN Inc. 150,000 3,562,500
International Family
Entertainment Inc. 200,000 3,100,000
Lin Television Corporation* 20,000 845,000
Paxson Communications
Corporation 60,000 472,500
United International Holdings
Inc.* 50,000 612,500
-------------------
20,726,250
CABLE -- 4.38%
AFC Cable Systems Inc.* 10,000 238,750
Cablevision Systems Corporation* 100,000 3,062,500
Tele Communications Inc.* 180,000 5,141,250
-------------------
8,442,500
CHEMICALS -- 4.27%
Church & Dwight Inc. 105,000 2,401,875
Lawter International Inc. 100,000 1,262,500
Loctite Corporation 75,000 4,565,625
-------------------
8,230,000
CONSUMER DURABLES -- 2.16%
Dynamics Corporation of America 13,500 381,375
Envirosource Inc.* 100,000 268,750
Oneida Ltd. 90,000 1,620,000
Syratech Corporation 60,000 1,890,000
-------------------
4,160,125
CONSUMER SERVICES -- 3.24%
Berlitz International Inc.* 28,500 591,375
Rollins Inc. 205,000 4,100,000
Wackenhut Corporation 90,000 1,552,500
-------------------
6,243,875
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
-----------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT -- 2.11%
Ametek Inc. 60,000 $ 1,335,000
Thomas Industries Inc. 131,000 2,734,625
-------------------
4,069,625
ELECTRONICS -- 1.64%
CTS Corporation 74,000 3,163,500
ENERGY -- 0.20%
Kaneb Services Inc.* 120,000 390,000
ENTERTAINMENT & LEISURE -- 4.01%
Aztar Corporation* 260,000 1,820,000
Churchill Downs Inc. 14,500 522,000
GC Companies Inc. 50,000 1,731,250
Jackpot Enterprises Inc. 200,000 1,950,000
Spectravision Inc. (Class B)*(a) 274,617 0
Spelling Entertainment Group
Inc. 220,000 1,622,500
Trans Lux Corporation 8,000 88,000
-------------------
7,733,750
FOOD & BEVERAGES & TOBACCO -- 5.58%
Celestial Seasonings Inc.* 50,000 987,500
Culbro Corporation* 105,000 6,811,875
Tootsie Roll Industries Inc. 40,000 1,585,000
Whitman Corporation 60,000 1,372,500
-------------------
10,756,875
HEALTH CARE -- 0.11%
Spacelabs Inc.* 10,000 205,000
INSURANCE -- 1.47%
Capsure Holdings Corporation* 25,000 284,375
Liberty Corporation 65,000 2,551,250
-------------------
2,835,625
MACHINERY -- 5.75%
Baldwin Technology Company Inc.* 100,000 250,000
Briggs & Stratton Corporation 40,000 1,760,000
Donaldson Inc. 5,000 167,500
Franklin Electric Inc. 22,000 1,028,500
Goulds Pumps Inc. 175,000 4,014,062
Idex Corporation 22,000 877,250
Katy Industries Inc. 130,000 1,885,000
Kollmorgen Corporation 100,000 1,100,000
-------------------
11,082,312
MANUFACTURING -- 2.57%
Aptargroup Inc. 15,000 528,750
Crane Company 90,000 2,610,000
Mark IV Industries Inc. 30,000 678,750
Oil Dri Corporation of America 75,000 1,125,000
-------------------
4,942,500
METALS & MINING -- 1.83%
Calmat Company 65,000 1,218,750
Handy & Harman 100,842 1,764,735
Trinova Corporation 15,000 545,625
-------------------
3,529,110
MISC. FINANCIAL SERVICES -- 2.50%
Data Broadcasting 50,000 350,000
Midland Company 60,500 2,329,250
Pioneer Group Inc. 90,000 2,137,500
-------------------
4,816,750
PAPER PRODUCTS -- 0.31%
Nashua Corporation 50,000 600,000
PHARMACEUTICALS -- 1.78%
Carter Wallace Inc. 220,000 3,437,500
</TABLE>
109
<PAGE> 112
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
PRINTING & PUBLISHING -- 4.81%
Lee Enterprises Inc. 60,000 $ 1,395,000
Media General Inc. 105,000 3,176,250
Meredith Corporation 30,000 1,582,500
Providence Journal Company* 61,300 1,877,312
Pulitzer Publishing Company 26,666 1,236,636
-------------------
9,267,698
REAL ESTATE -- 1.89%
Catellus Development
Corporation* 170,000 1,933,750
Santa Anita Realty Enterprises
Inc. 65,000 1,706,250
-------------------
3,640,000
RETAIL -- 3.58%
Brunos Inc.* 42,500 733,125
Giant Foods Inc. 80,000 2,760,000
Neiman Marcus Group Inc. 120,000 3,060,000
Phar Mor Inc.* 65,000 353,438
-------------------
6,906,563
SECURITY & INVESTIGATION SERVICES -- 0.83%
Pittway Corporation 30,000 1,605,000
TELECOMMUNICATIONS -- 6.17%
Aerial Communications Inc. 80,000 650,000
Associated Group Inc.* 35,000 1,076,250
C Tec Corporation* 70,000 1,662,500
Cellular Communications Puerto
Rico* 102,500 2,024,375
Centennial Cellular Corporation* 180,000 2,182,500
Comsat Corporation 108,000 2,659,500
Telephone & Data Systems Inc. 45,000 1,631,250
-------------------
11,886,375
TRANSPORTATION -- 2.73%
GATX Corporation 100,000 4,850,000
Hudson General Corporation 11,000 409,750
-------------------
5,259,750
TOTAL COMMON STOCKS
(IDENTIFIED COST $185,070,207) 183,019,808
- ----------------------------------------------------------------------------
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
U.S. TREASURY BILLS -- 4.50%
- ----------------------------------------------------------------------------
U.S. Treasury Bill
4.51% due 01/23/97 619,000 $ 617,294
U.S. Treasury Bill
4.59% due 01/23/97 3,635,000 3,624,804
U.S. Treasury Bill
4.47% due 01/30/97 470,000 468,308
U.S. Treasury Bill
4.90% due 01/02/97 100,000 99,986
U.S. Treasury Bill
4.90% due 01/09/97 300,000 299,673
U.S. Treasury Bill
4.96% due 01/09/97 335,000 334,631
U.S. Treasury Bill
4.96% due 02/13/97 669,000 665,037
U.S. Treasury Bill
4.96% due 02/20/97 913,000 906,711
U.S. Treasury Bill
4.965% due 01/30/97 1,000,000 996,000
U.S. Treasury Bill
4.995% due 02/06/97 660,000 656,703
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $8,669,146) 8,669,147
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.57%
- ----------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.00% due 01/02/97
Collateral: U.S. Treasury Note
$1,095,000, 5.875%, due
07/31/97 Value $1,124,141 1,100,000 1,100,000
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $1,100,000) 1,100,000
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $194,839,353) $ 192,788,955
OTHER ASSETS LESS LIABILITIES -- (0.04)% (85,136)
-------------------
NET ASSETS 100% $ 192,703,819
============================================================================
</TABLE>
(*) Non-income producing
(a) In bankruptcy
See accompanying notes to financial statements.
110
<PAGE> 113
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 87.92% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 8.41%
Lockheed Martin Corporation 400,000 $ 36,600,000
Loral Space & Communications 600,000 11,025,000
McDonnell Douglas Corporation 1,800,000 115,200,000
-------------------
162,825,000
BANKING -- 14.48%
Citicorp 999,000 102,897,000
First Empire State Corporation 100,000 28,800,000
Wells Fargo & Company 550,733 148,560,227
-------------------
280,257,227
BROADCASTING -- 0.23%
TCI Satellite Entertainment
Inc. 450,000 4,443,750
CABLE -- 3.54%
Tele Communications Inc. 5,250,000 68,578,125
CHEMICALS -- 7.53%
Du Pont (E. I.) de Nemours &
Company 900,000 84,937,500
Hercules Inc. 1,000,000 43,250,000
Monsanto Company 450,000 17,493,750
-------------------
145,681,250
CONSTRUCTION -- 0.28%
Newport News Shipbuilding Inc. 360,000 5,400,000
CONSUMER PRODUCTS -- 3.87%
Mattel Inc. 2,700,000 74,925,000
CRUDE & PETROLEUM -- 0.94%
Union Pacific Resources Group
Inc. 625,000 18,281,250
DRUGS & MEDICAL PRODUCTS -- 2.80%
Becton, Dickinson & Company 1,250,000 54,218,750
ENERGY -- 0.98%
Triton Energy Ltd. 389,200 18,876,200
ENTERTAINMENT & LEISURE -- 0.62%
Harrahs Entertainment Inc. 600,000 11,925,000
INSURANCE -- 6.38%
Ace Ltd. 400,000 24,050,000
EXEL Ltd. 1,600,000 60,600,000
Transamerica Corporation 204,600 16,163,400
Travelers Inc. 500,000 22,687,500
-------------------
123,500,900
MACHINERY -- 6.92%
Caterpillar Inc. 700,000 52,675,000
Tenneco Inc. 1,800,000 81,225,000
-------------------
133,900,000
METALS & MINING -- 3.32%
Freeport McMoRan Copper & Gold
(Class B) 2,150,000 64,231,250
MISC. FINANCIAL
SERVICES -- 11.60%
American Express Company 400,000 22,600,000
Countrywide Credit Industries
Inc. 1,700,000 48,662,500
Federal Home Loan Mortgage
Corporation 850,000 93,606,250
Federal National Mortgage
Association 1,600,000 59,600,000
-------------------
224,468,750
PAPER & FOREST PRODUCTS -- 2.01%
Champion International
Corporation 900,000 38,925,000
PRINTING & PUBLISHING -- 0.81%
Donnelley R R & Sons Company 500,000 15,687,500
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
REAL ESTATE -- 0.77%
Security Capital Group Inc.
(A) 11,908 $ 14,822,840
RESTAURANTS -- 3.51%
McDonalds Corporation 1,500,000 67,875,000
TECHNOLOGY -- 5.68%
Intel Corporation 350,000 45,828,125
National Semiconductor
Corporation* 2,200,000 53,625,000
Unitrode Corporation* 360,000 10,575,000
-------------------
110,028,125
TRANSPORTATION -- 3.11%
Union Pacific Corporation 1,000,000 60,125,000
UTILITIES -- 0.13%
El Paso Natural Gas Company 50,000 2,525,000
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,181,588,338) 1,701,500,917
- --------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.03%
- --------------------------------------------------------------------------
RETAIL -- 0.03%
Venture Stores 32,922 604,942
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,566,100) 604,942
- --------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 0.59%
- --------------------------------------------------------------------------
REAL ESTATE -- 0.59%
Security Capital Group Inc.
(A) 12.00% due 06/30/14 9,442,819 11,334,984
TOTAL CONVERTIBLE CORPORATE BONDS
(IDENTIFIED COST $9,054,974) 11,334,984
- --------------------------------------------------------------------------
U.S. TREASURY BONDS -- 0.45%
- --------------------------------------------------------------------------
U.S. Treasury Bond
6.25% due 08/15/23 9,300,000 8,722,005
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $8,673,858) 8,722,005
- --------------------------------------------------------------------------
U.S. TREASURY NOTES -- 0.66%
- --------------------------------------------------------------------------
U.S. Treasury Note
7.875% due 04/15/98 8,370,000 8,585,277
U.S. Treasury Note
7.875% due 08/15/01 3,952,500 4,213,681
-------------------
12,798,958
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $12,356,079) 12,798,958
- --------------------------------------------------------------------------
COMMERCIAL PAPER -- 8.61%
- --------------------------------------------------------------------------
Beneficial Corporation
5.48% due 01/22/97 11,000,000 10,964,836
Ford Motor Credit Company
5.38% due 01/09/97 60,000,000 59,928,267
General Motors Acceptance
Corporation,
5.52% due 01/27/97 61,055,000 60,811,594
Household Finance Corporation
5.32% due 01/06/97 35,000,000 34,974,139
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $166,678,836) 166,678,836
- --------------------------------------------------------------------------
</TABLE>
111
<PAGE> 114
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.61%
- --------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.75% due 01/02/97
Collateral: U.S. Treasury
Note $31,410,000, 6.25% due
4/30/01 Value $31,843,866 31,215,000 $ 31,215,000
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $31,215,000) 31,215,000
- --------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,411,133,185) $ 1,932,855,642
OTHER ASSETS LESS LIABILITIES -- 0.13% 2,487,839
-------------------
NET ASSETS 100% $ 1,935,343,481
==========================================================================
</TABLE>
(*) Non-income producing
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(A) Restricted securities as of December 31, 1996:
<TABLE>
<CAPTION>
% OF
DATES OF PAR/ AGGREGATE NET
DESCRIPTION ACQUISITION SHARES UNIT COST UNIT VALUE COST VALUE ASSETS
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Security Capital
Group, Inc.
12.00%, 6/30/14... 7/1/94-9/15/94 $ 8,162,361 $0.94 $ 1.20 $ 7,699,650 $ 9,797,947 0.51%
12/31/94-12/31/95 271,825 1.00 1.20 271,825 326,294 0.02
7/1/96-11/26/96 1,008,633 1.07 1.20 1,076,026 1,210,743 0.06
Security Capital
Group, Inc. Common
Stock............. 3/7/94-11/26/96 11,908 $777.02-$1,128.06 $1,244.78 10,376,171 14,822,840 0.77
----------- ----------- ------
$19,423,672 $26,157,824 1.36%
========== ========== ======
</TABLE>
112
<PAGE> 115
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 91.24% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 4.55%
Amcor LTD 16,500 $ 106,101
Boral LTD 22,400 63,741
Broken Hill Proprietary 38,900 554,080
CRA LTD 13,763 216,055
David Jones LTD 70,000 97,369
Lend Lease Corporation 5,205 100,947
Mim Holdings LTD 56,775 79,425
National Australia Bank 21,000 247,039
News Corporation 48,042 253,556
Pacific Dunlop LTD 29,000 73,762
Qantas Airways LTD 40,164 67,041
Santos LTD 26,000 105,397
Westpac Bank Corporation 43,000 244,718
WMC LTD 20,000 126,063
Woolworths LTD 28,000 67,435
-------------------
2,402,729
BELGIUM -- 2.87%
Bruxelles Lambert Groupe 650 $ 83,689
Delhaize Le Lion 1,300 77,236
Electrabel 1,120 265,108
Fortis AG 1,019 163,477
Fortis AG (Rts) 19 9
Generale De Banque 300 107,557
Generale De Banque (Wts)* 300 4,350
Kredietbank 620 203,231
Petrofina SA 575 183,043
Society General De Belgique 1,100 86,329
Solvay 210 128,571
Tractebel CAP 300 139,705
Union Miniere* 1,100 74,541
-------------------
1,516,846
CANADA -- 2.53%
Alcan Aluminum LTD 2,800 $ 94,574
Bank Montreal Quebec 2,500 79,603
Barrick Gold Corporation 1,700 48,729
BCE Inc. 1,600 77,061
Canadian National Railway
Company 2,000 76,097
Canadian Pacific LTD 6,500 171,128
Hudsons Bay Company 2,700 45,154
Imperial Oil LTD 2,300 108,340
Moore Corporation LTD 2,500 51,851
Noranda Inc. 2,900 64,701
Northern Telecom LTD 1,200 74,666
Nova Corporation Alberta 4,400 39,042
Royal Bank Canada Montreal
Quebec 2,900 101,870
Seagram LTD 2,500 99,047
Thomson Corporation 6,300 139,177
Transcanada Pipelines LTD 3,800 66,603
-------------------
1,337,643
FINLAND -- 1.45%
Merita A LTD* 26,000 $ 80,826
Nokia (Ab) Oy 6,400 371,200
Outokumpu Oy 4,200 71,674
Pohjola 1,400 31,500
Sampo Vakuutusosak 900 71,022
Upm Kymmene Oy 6,700 140,554
-------------------
766,776
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
FRANCE -- 9.46%
Accor 1,324 $ 167,653
Alcatel Alsthom 1,876 150,702
Axa 800 50,882
Banque National Paris 6,800 263,167
Cep Communications 400 28,255
Cep Communications (Wts)* 400 459
Cie Bancaire 1,487 175,970
Cie De St Gobain 2,289 323,817
Cie De Suez 3,082 131,038
Colas 300 43,365
Credit Local de France 2,859 249,064
Danone 700 97,543
Generale Des Eaux 3,369 417,513
L'Oreal 200 75,320
Lafarge Coppee SA 1,500 89,997
LVMH Moet Hennessy 1,440 402,151
Michelin* 3,828 206,654
Pechiney 2,959 123,983
Peugeot SA* 3,025 340,484
Rhone Poulenc SA 7,000 238,662
Seita 3,000 125,470
Societe Generale 2,655 287,068
Society Elf Aquitaine 3,020 274,905
Total SA 4,727 384,464
UAP 5,304 134,427
Usinor Sacilor 14,200 206,630
-------------------
4,989,643
GERMANY -- 6.99%
Allianz AG Holdings 188 $ 342,085
BASF AG 4,800 184,913
Bayer AG 6,550 267,312
Bayer Motoren Werk 300 209,189
Commerzbank AG 5,000 127,047
Daimler Benz AG* 2,750 189,433
Deutsche Bank AG 5,300 247,641
Deutsche Telekom 8,050 169,757
Hochtief AG 1,500 59,462
Hoechst AG 2,300 108,662
Manitoba AG 400 96,959
Mannesmann AG 470 203,724
Metro AG 1,680 135,378
Muenchener Ruckvers 93 232,379
Preussag AG 650 147,209
RWE AG 3,500 148,297
Schering AG 2,300 194,158
Siemens AG 1,700 80,095
Thyssen AG 900 159,670
Veba AG 4,100 237,133
Volkswagen AG 350 145,568
-------------------
3,686,071
HONG KONG -- 1.39%
Cheung Kong Holdings 7,000 $ 62,221
China Light & Power 15,000 66,714
Guoco Group 10,000 55,983
Hang Seng Bank 7,000 85,074
Hong Kong Telecommunications 28,000 45,071
Hutchison Whampoa 17,000 133,525
New World Development Company 12,000 81,065
Sun Hung Kai Properties 4,000 49,001
Swire Pacific 9,000 85,817
Wharf Holdings 14,000 69,869
-------------------
734,340
</TABLE>
113
<PAGE> 116
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
IRELAND -- 0.14%
Smurfit Jefferson 26,000 $ 75,056
ITALY -- 2.68%
Assic Generali 8,470 $ 160,522
Danieli Di Risp 7,000 29,301
Edison 8,000 50,626
Eni (ADR) 3,300 170,363
Eni SPA 19,000 97,505
IMI 20,000 171,391
INA 38,000 49,498
Italgas 10,000 41,760
Mediobanca SPA 4,000 21,582
Montedison SPA* 216,580 147,623
Rinascente 8,000 46,407
Rinascente (Wts)* 400 176
Rinascente Louisiana 10,000 25,577
SAI Di Risp 10,000 35,564
Telecom Italia Di Risp 103,000 200,976
Telecom Italia Mobile Di Risp 115,000 164,123
-------------------
1,412,994
JAPAN -- 24.86%
Amada Company 23,000 $ 178,741
Asahi Glass Company 28,000 263,535
Bank of Tokyo Mits 21,600 401,002
Canon Inc. 20,000 442,103
Canon Sales Company Inc. 7,700 171,540
Citizen Watch Company 23,000 164,839
Dai Nippon Printing 21,000 368,103
Daiichi Pharm Company 16,000 256,973
Daikin Kogyo 24,000 213,453
Daiwa House Industries 11,000 141,525
Fanuc 9,000 288,317
Fujitsu 13,000 121,233
Hitachi 47,000 438,304
Honda Motor Company 6,000 171,488
Inax Corporation 28,000 207,443
Isetan Company 7,000 90,666
Ito Yokado Company 8,000 348,156
Kaneka Corporation 13,000 66,566
Keio Teito Electric Railway 24,000 117,296
Kintetsu 28,000 174,804
Kirin Brewery Company 24,000 236,249
Kokuyo Company 5,000 123,478
Kuraray Company 20,000 184,785
Kyocera Corporation 2,000 124,687
Maeda Road Construction 4,000 46,283
Matsushita Electric Industrial
Indiana 38,000 620,154
Mitsubishi Paper 29,000 113,436
NGK 38,000 360,936
Nintendo Company 1,700 121,691
Nippon Denso 16,000 385,459
Nippon Meat Packer 15,000 194,284
Nippon Steel Corporation 22,000 64,968
Okumura Corporation 24,000 145,894
Osaka Gas Company 91,000 249,089
Sankyo Company 17,000 481,478
Sanwa Bank 12,000 163,716
Secom Company 5,000 302,651
Seino Transportation 7,000 77,368
Sekisui House 45,000 458,510
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
Shinmaywa Industries 21,000 $ 154,676
Sony Corporation 6,600 432,553
Sumitomo Bank 24,000 346,084
Sumitomo Electric Industries 19,000 265,780
Takeda Chemical Industries 17,000 356,705
TDK Corporation 4,000 260,772
Tokio Marine & Fire 20,000 188,239
Tokyo Electric Power 10,400 228,098
Tokyo Steel Manufacturing 16,600 236,508
Tonen Corporation 17,000 198,169
Toray Industries Inc. 92,000 567,999
Toshiba Corporation 53,000 333,166
Toyo Suisan Kaisha 12,000 120,197
Toyota Motor Corporation 6,000 172,524
Yamazaki Baking Company 11,000 175,719
-------------------
13,118,392
MALAYSIA -- 1.14%
Hume Industries 11,000 $ 69,253
Kuala Lumpur Kepong 20,000 50,683
Land & General 16,000 38,329
Malayan Bank Berhad 4,000 44,348
Malaysia International Shipping 11,000 32,667
Nestle Malay Berhad 2,000 16,076
Public Bank Berhad 20,000 42,368
Resorts World Berhad 10,000 45,535
Sime Darby Berhad 18,000 70,917
Telekom Malaysia 7,000 62,364
Tenaga Nasional 22,000 105,405
YTL Corporation 4,000 21,540
-------------------
599,485
NETHERLANDS -- 5.71%
Abn Amro Holdings 3,826 $ 249,083
Akzo Nobel 600 82,016
DSM 900 88,827
Ing NTFL 10,602 381,954
Klm 2,200 61,929
Kon Hoogovens & Staalf 1,800 75,065
KPN 6,729 256,844
Philips Electronic 3,000 121,633
Royal Dutch Petroleum 5,950 1,043,878
Unilever 2,170 384,102
Vendex International 3,821 163,552
Ver Ned Uitgevers 4,900 102,456
-------------------
3,011,339
NEW ZEALAND -- 3.05%
Brierley Investment LTD 288,000 $ 266,723
Carter Holt Harvey 99,000 224,666
Fletcher Challenge Building
Division 33,250 102,253
Fletcher Challenge Energy
Division 36,250 105,073
Fletcher Challenge Forest
Division 62,398 104,548
Fletcher Challenge Paper
Division 65,500 134,751
Telecom Corporation of New
Zealand 116,000 592,096
Telecom Corporation of New
Zealand (ADR) 1,000 81,000
-------------------
1,611,110
SINGAPORE -- 0.05%
Jardine Matheson 4,400 $ 29,040
</TABLE>
114
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ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
SPAIN -- 3.31%
Acerinox SA 500 $ 72,251
Banco Bilbao Vizcaya 2,300 124,190
Banco Central Hispanoamericano 2,370 60,881
Banco Intercontinental 300 46,516
Banco Popular 580 113,923
Banco Santander SA 2,500 160,023
Corporacion Mapfre 1,100 67,021
Empresa Nac Electricid 2,900 206,401
Fomento De Construcciones Y
Contra 900 83,882
Gas Natural SDG SA 300 69,786
Iberdrola SA 13,900 197,004
Repsol SA 3,300 126,586
Repsol SA (ADR) 1,000 38,125
Sevillana De Electricidad 5,501 62,499
Telefonica De Espana 9,700 225,269
Vallehermoso SA 2,500 54,208
Viscofan Envoltura 2,500 36,588
-------------------
1,745,153
SWITZERLAND -- 1.70%
ABB AG Series A 50 $ 62,196
CS Holding 500 51,363
Nestle SA 244 261,956
Novartis AG 187 214,173
Roche Holdings AG 20 155,622
Schweizerische Bankgesellschaft 61 53,458
Societe General Surveillance
Holding 13 31,954
Zurich Verischerung 237 65,868
-------------------
896,590
UNITED KINGDOM -- 19.36%
Abbey National 12,000 $ 157,067
Bank Of Scotland 20,000 105,534
Bass 7,500 105,619
BAT Industries 46,200 383,087
Booker 13,000 88,641
British Energy 100,000 250,128
British Gas 94,000 360,733
British Petroleum 44,739 536,531
British Steel 79,000 216,550
British Telecom 89,000 602,279
Charter 10,940 139,069
Coats Viyella 47,900 109,964
FKI 43,500 151,285
General Electric 90,900 596,449
Glaxo Holdings 14,200 231,112
Grand Metropolitan 59,000 462,943
Guinness 44,600 350,718
Hanson 83,200 116,882
Hillsdown Holdings 65,000 222,717
House of Fraser 78,000 203,118
HSBC Holdings 15,500 346,539
Imperial Chemical Industries 4,000 52,733
Legal & General 33,500 213,787
Lloyds TSB Group 77,264 570,512
Marks & Spencer 36,500 307,658
Mirror Group PLC 32,000 117,869
National Power 22,000 183,930
National Westminster Bank 12,700 149,258
Northern Foods 38,000 131,506
Peninsular and Oriental Steam 36,500 369,565
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
Reckitt & Colman 5,700 $ 70,603
Redland 12,500 79,022
RJB Mining 30,000 219,354
Royal Sun Alliance 22,005 167,950
Rtz Corporation 15,100 242,655
Sainsbury J 31,000 205,534
Scottish Hydro 25,400 142,296
Sears 85,000 136,885
Sedgwick Group 59,000 132,414
Smithkline Beecham 18,000 249,169
TESCO 25,000 151,619
Thames Water 19,000 198,886
Unilever 9,300 225,450
Vodafone Group 20,300 85,902
Yorkshire Water 6,000 72,469
-------------------
10,213,991
TOTAL COMMON STOCKS
(IDENTIFIED COST $44,982,418) $ 48,147,198
- -----------------------------------------------------------------------------
PREFERRED STOCK -- 0.56%
- -----------------------------------------------------------------------------
AUSTRALIA -- 0.09%
News Corporation 10,000 $ 44,512
GERMANY -- 0.20%
Henkel Kgaa 2,100 $ 105,491
ITALY -- 0.27%
Fiat SPA 86,000 $ 142,011
TOTAL PREFERRED STOCK
(IDENTIFIED COST $302,839) $ 292,014
- -----------------------------------------------------------------------------
COMMERCIAL PAPER -- 8.27%
- -----------------------------------------------------------------------------
Bell Atlantic Financial Services
5.75% due 01/09/97 1,000,000 $ 998,722
Bell Atlantic Network Funding
5.80% due 01/09/97 1,000,000 998,711
Browning Ferris Industries Inc.
6.40% due 01/02/97 1,343,000 1,342,761
Duracell
6.75% due 01/02/97 1,025,000 1,024,808
-------------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $4,365,002) $ 4,365,002
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $49,650,259) $ 52,804,214
OTHER ASSETS LESS LIABILITIES -- (0.07)% (35,913)
-------------------
NET ASSETS 100% $ 52,768,301
=============================================================================
</TABLE>
(*) Non-income Producing
(Rts) Rights
(Wts) Warrants
ADR American Depository Receipts
These abbreviations signify incorporation:
AG Aktien Gesellschaft
LTD Limited
SA Societe Anonyme
SPA Societa Per Azoine
See accompanying notes to financial statements.
115
<PAGE> 118
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
CORPORATE BONDS, CONVERTIBLE
SECURITIES & COMMON NUMBER OF SHARES OR
STOCKS -- 86.51% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 0.45%
Universal Outdoor Inc.
9.75% due 10/15/06 $ 150,000 $ 154,875
AEROSPACE -- 0.65%
Rohr Inc.
11.625% due 05/15/03 200,000 223,000
BASIC INDUSTRIES -- 1.35%
Maxxam Group Inc.
11.25% due 08/01/03 200,000 205,000
Unifrax Investment Corporation
10.50% due 11/01/03 250,000 258,438
-------------------
463,438
BROADCASTING -- 9.73%
Brooks Fiber Properties Inc.
Zero Coupon due 11/01/06 600,000 382,500
Comcast UK Cable LP
Zero Coupon due 11/15/07 550,000 388,437
Kabelmedia Holding
Zero Coupon due 08/01/06 350,000 195,125
Phonetel Technologies Inc.
12.00% due 12/15/06 250,000 258,750
Rogers Communications Inc.
Zero Coupon due 05/20/13 250,000 96,875
Rogers Communications Inc.
9.125% due 01/15/06 100,000 98,750
Rogers Communications Inc.
10.875% due 04/15/04 300,000 315,000
Sprint Spectrum LP
Zero Coupon due 08/15/06 650,000 440,375
Sprint Spectrum LP
11.00% due 08/15/06 400,000 433,000
Telewest PLC
Zero Coupon due 10/01/07 400,000 278,000
Telewest PLC
9.625% due 10/01/06 450,000 461,250
-------------------
3,348,062
CABLE -- 3.76%
Cablevision Systems Corporation
9.25% due 11/01/05 300,000 296,250
Century Communications
Corporation,
9.50% due 03/01/05 500,000 512,500
Lodgenet Entertainment
Corporation,
10.25% due 12/15/06 350,000 350,000
TCI Communications Inc.
6.875% due 02/15/06 150,000 135,510
-------------------
1,294,260
CHEMICALS -- 5.85%
Freedom Chemical Company
10.625% due 10/15/06 400,000 417,000
General Chemical Corporation
9.25% due 08/15/03 100,000 102,500
Pioneer Americas Acquisition
Corporation, 13.375% due
04/01/05 400,000 457,000
Rexene Corporation
11.75% due 12/01/04 250,000 280,312
Terra Industries Inc.
10.50% due 06/15/05 150,000 163,313
Texas Petrochemical Corporation
11.125% due 07/01/06 550,000 591,250
-------------------
2,011,375
CONSUMER DURABLES -- 0.96%
Samsonite Corporation
11.125% due 07/15/05 300,000 329,250
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
CONSUMER NON-DURABLES -- 5.63%
Brown Group Inc.
9.50% due 10/15/06 $ 450,000 $ 453,109
E & S Holdings Corporation
10.375% due 10/01/06 600,000 627,000
Herff Jones Inc.
11.00% due 08/15/05 350,000 377,125
Speedy Muffler King Inc.
10.875% due 10/01/06 450,000 481,500
-------------------
1,938,734
CONSUMER SERVICES -- 0.45%
Safelite Glass Corporation
9.875% due 12/15/06 150,000 154,125
CONTAINERS -- 1.37%
MVE Inc.
12.50% due 02/15/02 350,000 367,500
Plastic Containers Inc.
10.00% due 12/15/06 100,000 103,250
-------------------
470,750
ENERGY -- 5.73%
Clark USA Inc.
10.875% due 12/01/05 350,000 363,125
Kelley Oil & Gas Corporation
10.375% due 10/15/06 350,000 363,125
Maxus Energy Corporation
9.375% due 11/01/03 500,000 508,750
Mesa Operating Company
10.625% due 07/01/06 450,000 489,375
USX Marathon Group, Convertible
Debt, Zero Coupon due 08/09/05 12,000 5,610
YPF Sociedad Anonima
8.00% due 02/15/04 250,000 240,625
-------------------
1,970,610
ENTERTAINMENT & LEISURE -- 1.99%
AMF Group Inc.
10.875% due 03/15/06 500,000 527,500
Cobblestone Golf Group Inc.
11.50% due 06/01/03 150,000 156,375
-------------------
683,875
FINANCE -- 1.45%
First Nationwide Escrow
Corporation,
10.625% due 10/01/03 100,000 107,750
Homeside Inc.
11.25% due 05/15/03 350,000 391,563
-------------------
499,313
FOOD & BEVERAGES & TOBACCO -- 0.78%
Cott Corporation
9.375% due 07/01/05 50,000 51,500
Keebler Corporation
10.75% due 07/01/06 200,000 216,000
-------------------
267,500
GAMING -- 1.95%
Casino Magic Corporation
11.50% due 10/15/01 250,000 225,000
Harrahs Jazz (a)
14.25% due 11/15/01 100,000 49,250
Trump Atlantic City Associates
11.25% due 05/01/06 400,000 395,000
-------------------
669,250
</TABLE>
116
<PAGE> 119
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
HEALTH CARE -- 5.04%
Dade International Inc.
11.125% due 05/01/06 $ 350,000 $ 378,000
Mariner Health Group Inc.
9.50% due 04/01/06 200,000 195,000
Maxxim Medical Inc.
10.50% due 08/01/06 500,000 522,500
Mediq Inc.
7.50% due 07/15/03 425,000 376,125
Quest Diagnostics Inc.
10.75% due 12/15/06 250,000 262,500
-------------------
1,734,125
HOTELS & RESTAURANTS -- 3.09%
Foodmaker Corporation
9.75% due 11/01/03 250,000 242,813
H M H Properties Inc.
9.50% due 05/15/05 450,000 469,125
Hammon John Q. Hotels
8.875% due 02/15/04 250,000 246,875
Wyndham Hotel Corporation
10.50% due 05/15/06 100,000 106,000
-------------------
1,064,813
MACHINERY -- 1.07%
Mettler Toledo Inc.
9.75% due 10/01/06 350,000 368,375
MANUFACTURING -- 0.43%
Materials Corporation America
8.625% due 12/15/06 150,000 149,625
METALS & MINING -- 8.60%
AK Steel Corporation
9.125% due 12/15/06 250,000 256,875
Euramax International
11.25% due 10/01/06 250,000 258,750
Kaiser Aluminum & Chemical
Corporation,
10.875% due 10/15/06 250,000 264,062
Kaiser Aluminum & Chemical
Corporation,
12.75% due 02/01/03 300,000 320,625
Oregon Steel Mills Inc.
11.00% due 06/15/03 600,000 634,500
United States Can Corporation
10.125% due 10/15/06 450,000 472,500
WCI Steel Inc.
10.00% due 12/01/04 500,000 506,250
Wheeling Pittsburgh Corporation
9.375% due 11/15/03 $ 250,000 246,250
-------------------
2,959,812
PAGING SERVICES -- 1.91%
Pagemart Nationwide Inc. 875 9,844
Paging Network Inc.
8.875% due 02/01/06 $ 300,000 286,500
Paging Network Inc.
10.125% due 08/01/07 100,000 101,750
Printpack Inc.
10.625% due 08/15/06 250,000 260,625
-------------------
658,719
PAPER & FOREST PRODUCTS -- 3.92%
Crown Paper Company
11.00% due 09/01/05 450,000 421,875
Riverwood International
Corporation,
10.25% due 04/01/06 400,000 392,000
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
SD Warren Company
12.00% due 12/15/04 $ 300,000 $ 324,375
Stone Container Corporation
10.75% due 10/01/02 200,000 210,500
-------------------
1,348,750
PAPER PRODUCTS -- 1.22%
Four M Corporation
12.00% due 06/01/06 400,000 421,000
RETAIL -- 7.24%
Ann Taylor Inc.
8.75% due 06/15/00 200,000 195,750
Brunos Inc.
10.50% due 08/01/05 250,000 264,375
Cole National Group Inc.
9.875% due 12/31/06 500,000 515,000
Corporate Express Inc.
9.125% due 03/15/04 350,000 356,562
Penn Traffic Company
11.50% due 04/15/06 150,000 131,625
Ralphs Grocery Company
10.45% due 06/15/04 500,000 531,250
Smiths Food & Drug
11.25% due 05/15/07 450,000 498,375
-------------------
2,492,937
TELECOMMUNICATIONS -- 7.07%
American Communications Services
Inc.,
Zero Coupon due 11/01/05 $ 400,000 238,000
American Communications Services
Inc. (Wts)* 300 28,200
Echostar Communications
Corporation,
Zero Coupon due 06/01/04 $ 500,000 415,000
ICG Holdings Inc.
Zero Coupon due 05/01/06 300,000 195,750
Jacor Communications Company
9.75% due 12/15/06 250,000 256,875
MFS Communications Inc.
Zero Coupon due 01/15/06 300,000 218,250
Teleport Communications Group
Zero Coupon due 07/01/07 800,000 551,000
Teleport Communications Group
9.875% due 07/01/06 500,000 531,250
-------------------
2,434,325
TEXTILES -- 1.49%
Carter William Company
10.375% due 12/01/06 500,000 512,500
UTILITIES -- 1.34%
Ferrellgas Partners LP
9.375% due 06/15/06 300,000 303,000
Midland Funding Corporation I
10.33% due 07/23/02 147,405 157,540
-------------------
460,540
WASTE MANAGEMENT -- 1.99%
Allied Waste North America Inc.
10.25% due 12/01/06 650,000 684,125
TOTAL CORPORATE BONDS, CONVERTIBLE
SECURITIES & COMMON STOCKS
(IDENTIFIED COST $28,744,123) 29,768,063
- -----------------------------------------------------------------------------
</TABLE>
117
<PAGE> 120
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
U.S. TREASURY BILLS -- 1.16%
- -----------------------------------------------------------------------------
U.S. Treasury Bill
4.727% due 01/02/97 $ 200,000 $ 199,973
U.S. Treasury Bill
4.90% due 01/02/97 200,000 199,973
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $399,947) 399,946
- -----------------------------------------------------------------------------
FOREIGN BONDS -- 5.73%
- -----------------------------------------------------------------------------
BASIC INDUSTRIES -- 2.11%
Cemex S A
12.75% due 07/15/06 650,000 726,375
BROADCASTING -- 1.24%
Grupo Televisa S A
11.375% due 05/15/03 400,000 428,000
GOVERNMENT BOND -- 1.21%
Mexico United Mexican States
9.75% due 02/06/01 400,000 414,500
TRANSPORTATION -- 1.17%
Transportacion Maritima Mexica
10.00% due 11/15/06 400,000 403,500
TOTAL FOREIGN BONDS
(IDENTIFIED COST $1,907,727) 1,972,375
- -----------------------------------------------------------------------------
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
PREFERRED STOCK -- 0.89%
- -----------------------------------------------------------------------------
DRUGS & MEDICAL PRODUCTS -- 0.89%
Fresenius Med Care Capital Trust 300 $ 306,750
TOTAL PREFERRED STOCK
(IDENTIFIED COST $301,500) 306,750
- -----------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.75%
- -----------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.00% due 01/02/97
Collateral: U.S. Treasury Note
$1,315,000, 5.625% due 11/30/98
Value $1,316,373 1,290,000 1,290,000
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $1,290,000) 1,290,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $32,643,297) $ 33,737,134
OTHER ASSETS LESS LIABILITIES -- 1.96% 673,974
-------------------
NET ASSETS 100% $ 34,411,108
=============================================================================
</TABLE>
(*) Non-income producing
(a) In bankruptcy; Portfolio ceased accrual of interest.
(Wts) Warrants
See accompanying notes to financial statements.
118
<PAGE> 121
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<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..................... $319,688,440 $192,788,955 $1,932,855,642 $ 52,804,214 $33,737,134
Foreign currency at value
(cost-$236,255)......................... -- -- -- 242,411 --
Cash...................................... 2,674 2,802 109 1,492 3,112
Receivable for foreign currency sold
(net)................................... -- -- -- 183,103 --
Receivable for investments sold........... -- 249,169 6,938,074 -- --
Receivable for fund shares sold........... 646,367 163,224 2,022,043 82,773 91,156
Dividends receivable...................... 246,068 643,524 1,526,132 143,480 --
Interest receivable....................... 721 122 1,052,195 -- 666,475
------------ ------------ -------------- ----------- -----------
Total assets.................... 320,584,270 193,847,796 1,944,394,195 53,457,473 34,497,877
------------ ------------ -------------- ----------- -----------
LIABILITIES:
Payable for investments purchased......... 5,358,652 846,596 7,250,312 592,438 --
Payable for fund shares redeemed.......... 86,143 145,104 465,188 24,637 57,211
Investment advisory fee payable........... 208,310 127,798 1,192,285 36,169 20,092
Other accrued expenses.................... 24,233 24,479 142,929 35,928 9,466
------------ ------------ -------------- ----------- -----------
Total liabilities............... 5,677,338 1,143,977 9,050,714 689,172 86,769
------------ ------------ -------------- ----------- -----------
NET ASSETS:
Accumulated paid-in capital............... 226,820,689 163,574,002 1,292,557,092 47,305,614 32,975,567
Accumulated undistributed net investment
income.................................. 4,530,803 2,394,864 34,357,920 475,333 --
Accumulated undistributed net realized
gain (loss) on investments.............. 12,618,168 28,785,351 86,706,012 1,649,700 341,705
Net unrealized appreciation (depreciation)
on investments and translation of
foreign currencies denominated
amounts................................. 70,937,272 (2,050,398) 521,722,457 3,337,654 1,093,837
------------ ------------ -------------- ----------- -----------
Total Net Assets................ $314,906,932 $192,703,819 $1,935,343,481 $ 52,768,301 $34,411,108
============ ============ ============== =========== ===========
Fund shares outstanding................... 10,912,024 9,529,671 56,400,378 8,715,254 6,249,987
------------ ------------ -------------- ----------- -----------
Net asset value per share................. $28.86 $20.22 $34.31 $6.05 $5.51
============ ============ ============== =========== ===========
INVESTMENTS AT COST....................... $248,751,168 $194,839,353 $1,411,133,185 $ 49,650,259 $32,643,297
</TABLE>
See accompanying notes to financial statements.
119
<PAGE> 122
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<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................................ $4,249,709 $ 2,501,418 $ 31,939,901 $ 819,842* $ --
Interest................................. 2,183,675 1,407,349 14,249,437 143,453 2,257,800
----------- ----------- ------------ ---------- ----------
Total............................... 6,433,384 3,908,767 46,189,338 963,295 2,257,800
----------- ----------- ------------ ---------- ----------
OPERATING EXPENSES:
Investment advisory fee.................. 1,743,990 1,316,050 11,086,850 303,177 143,878
Custodian and fund accounting fees....... 76,326 82,683 218,756 164,944 58,262
Reports and notices to shareholders...... 56,231 52,197 433,061 7,516 5,969
Trustees' fees and expenses.............. 14,855 12,953 54,458 8,949 8,532
Audit and legal fees..................... 19,598 17,802 75,522 12,963 12,410
Miscellaneous............................ (8,419) 10,323 (37,257) (3,702) (3,795)
----------- ----------- ------------ ---------- ----------
Total operating expenses............ 1,902,581 1,492,008 11,831,390 493,847 225,256
Less: expense reimbursement......... -- -- -- -- (21,526)
----------- ----------- ------------ ---------- ----------
Total operating expense, net of
reimbursement..................... 1,902,581 1,492,008 11,831,390 493,847 203,730
----------- ----------- ------------ ---------- ----------
NET INVESTMENT INCOME............. 4,530,803 2,416,759 34,357,948 469,448 2,054,070
----------- ----------- ------------ ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NET:
Net realized gain on security
transactions........................... 12,678,406 28,896,623 86,738,070 1,045,447 364,910
Net realized gain of foreign currency
transactions........................... -- -- -- 784,826 --
Net realized (loss) on futures
transactions........................... -- (900) -- -- (22,678)
----------- ----------- ------------ ---------- ----------
Net realized gain on investments......... 12,678,406 28,895,723 86,738,070 1,830,273 342,232
Net change in unrealized gain (loss) on
investments and translation of foreign
currencies denominated amounts......... 34,566,579 (12,857,423) 213,973,719 2,175,265 789,178
----------- ----------- ------------ ---------- ----------
Net realized and unrealized gain
(loss) on investments............. 47,244,985 16,038,300 300,711,789 4,005,538 1,131,410
----------- ----------- ------------ ---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................... $51,775,788 $18,455,059 $335,069,737 $ 4,474,986 $3,185,480
=========== =========== ============ ========== ==========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Net of foreign taxes withheld of $128,202.
120
<PAGE> 123
(This page intentionally left blank)
121
<PAGE> 124
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,
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income......................... $ 4,530,803 $ 2,428,089 $ 2,416,759 $ 2,814,727
Net realized gain (loss) on investments....... 12,678,406 6,085,294 28,896,623 5,376,891
Net realized (loss) on futures................ -- -- (900) (22,493)
Net change in unrealized gain (loss) on
investments................................ 34,566,579 30,328,567 (12,857,423) 9,411,583
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations............................... 51,775,788 38,841,950 18,455,059 17,580,708
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income......................... (983,203) (2,889,772) (1,108,977) (3,411,512)
Net realized gains............................ (3,099,385) (5,969,884) (2,010,186) (6,433,570)
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders.......................... (4,082,588) (8,859,656) (3,119,163) (9,845,082)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales....................... 141,947,982 62,629,132 53,086,228 44,205,647
Reinvestment of dividends and distributions... 4,082,588 8,859,656 3,119,163 9,845,082
Cost of shares redeemed....................... (46,779,501) (22,091,871) (44,898,602) (40,604,991)
------------ ------------ ------------ ------------
Net increase in net assets from fund share
transactions.................................. 99,251,069 49,396,917 11,306,789 13,445,738
------------ ------------ ------------ ------------
Total increase in net assets............. 146,944,269 79,379,211 26,642,685 21,181,364
NET ASSETS:
Beginning of year............................. 167,962,663 88,583,452 166,061,134 144,879,770
------------ ------------ ------------ ------------
End of year................................... $314,906,932 $167,962,663 $192,703,819 $166,061,134
============ ============ ============ ============
SHARES ISSUED AND REDEEMED:
Issued........................................ 5,377,143 2,917,293 2,712,554 2,482,444
Issued in reinvestment of dividends and
distributions.............................. 141,462 427,111 154,261 562,375
Redeemed...................................... (1,801,187) (1,033,626) (2,320,780) (2,310,588)
------------ ------------ ------------ ------------
Net increase............................... 3,717,418 2,310,778 546,035 734,231
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
122
<PAGE> 125
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH
MANAGED PORTFOLIO PORTFOLIO HIGH-YIELD BOND PORTFOLIO
--------------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996 1995
-------------- -------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 34,357,948 $ 17,600,171 $ 469,448 $ 130,728 $ 2,054,070 703,962
86,738,070 41,673,988 1,830,273 791,046 364,910 88,147
-- -- -- -- (22,678) --
213,973,719 289,371,401 2,175,265 1,149,623 789,178 307,380
-------------- -------------- ----------- ----------- ------------ ------------
335,069,737 348,645,560 4,474,986 2,071,397 3,185,480 1,099,489
-------------- -------------- ----------- ----------- ------------ ------------
(3,366,114) (28,468,170) -- (132,550) (2,054,070) (703,962)
(15,402,221) (52,222,032) (190,139) (775,819) (33,884) (51,705)
-------------- -------------- ----------- ----------- ------------ ------------
(18,768,335) (80,690,202) (190,139) (908,369) (2,087,954) (755,667)
-------------- -------------- ----------- ----------- ------------ ------------
602,776,605 369,378,051 36,234,262 18,493,638 22,145,776 16,124,613
18,768,335 80,690,202 190,139 908,369 2,087,926 755,667
(267,220,838) (142,557,183) (6,539,162) (5,213,592) (6,143,188) (3,422,241)
-------------- -------------- ----------- ----------- ------------ ------------
354,324,102 307,511,070 29,885,239 14,188,415 18,090,514 13,458,039
-------------- -------------- ----------- ----------- ------------ ------------
670,625,504 575,466,428 34,170,086 15,351,443 19,188,040 13,801,861
1,264,717,977 689,251,549 18,598,215 3,246,772 15,223,069 1,421,208
-------------- -------------- ----------- ----------- ------------ ------------
$1,935,343,481 $1,264,717,977 $ 52,768,301 $ 18,598,215 $ 34,411,109 $ 15,223,069
============== ============== =========== =========== ============ ============
19,459,858 14,304,013 6,375,789 3,624,156 4,149,703 3,082,804
547,022 3,287,658 32,357 167,698 389,665 143,495
(8,684,392) (5,611,704) (1,143,764) (996,098) (1,154,032) (647,136)
-------------- -------------- ----------- ----------- ------------ ------------
11,322,488 11,979,967 5,264,382 2,795,756 3,385,336 2,579,163
============== ============== =========== =========== ============ ============
</TABLE>
See accompanying notes to financial statements.
123
<PAGE> 126
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.................... $ 23.35 $ 18.14 $ 17.95 $ 17.23 $ 15.24
-------- -------- ------- ------- -------
Income from investment operations:
Net investment income............................... 0.37 0.33 0.28 0.18 0.17
Net realized and unrealized gain on investments..... 5.52 6.38 0.41 1.13 2.49
-------- -------- ------- ------- -------
Total from investment operations............ 5.89 6.71 0.69 1.31 2.66
-------- -------- ------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net investment
income........................................... (0.09) (0.49) (0.18) (0.17) (0.24)
Distribution to shareholders from net capital
gains............................................ (0.29) (1.01) (0.32) (0.42) (0.43)
-------- -------- ------- ------- -------
Total dividends and distributions........... (0.38) (1.50) (0.50) (0.59) (0.67)
-------- -------- ------- ------- -------
Net asset value, end of year.......................... $ 28.86 $ 23.35 $ 18.14 $ 17.95 $ 17.23
======== ======== ======= ======= =======
Total return................................ 25.2% 38.4% 3.9% 7.8% 17.9%
-------- -------- ------- ------- -------
Net assets, end of year (000)......................... $314,907 $167,963 $88,583 $66,172 $33,581
-------- -------- ------- ------- -------
Ratio of net operating expenses to average net
assets.............................................. 0.81% 0.69% 0.67% 0.72% 0.79%
-------- -------- ------- ------- -------
Ratio of net operating expenses (excluding waivers) to
average net assets.................................. 0.81% 0.72% 0.69% 0.72% 0.79%
-------- -------- ------- ------- -------
Ratio of net investment income to average net
assets.............................................. 1.94% 1.94% 1.81% 1.47% 1.48%
-------- -------- ------- ------- -------
Ratio of net investment income (excluding waivers) to
average net assets.................................. 1.94% 1.91% 1.79% 1.47% 1.48%
-------- -------- ------- ------- -------
Portfolio turnover.................................... 30% 29% 38% 15% 27%
-------- -------- ------- ------- -------
Average commission per share (a)...................... $ 0.0567
--------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
124
<PAGE> 127
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.................. $ 18.48 $ 17.56 $ 18.62 $ 16.72 $ 15.11
-------- -------- -------- -------- -------
Income from investment operations:
Net investment income............................. 0.25 0.32 0.19 0.10 0.09
Net realized and unrealized gain (loss) on
investments.................................... 1.82 1.75 (0.16) 2.98 3.05
-------- -------- -------- -------- -------
Total from investment operations.......... 2.07 2.07 0.03 3.08 3.14
-------- -------- -------- -------- -------
Less dividends and distributions:
Dividends to shareholders from net investment
income......................................... (0.12) (0.40) (0.10) (0.10) (0.10)
Distribution to shareholders from net capital
gains.......................................... (0.21) (0.75) (0.99) (1.08) (1.43)
-------- -------- -------- -------- -------
Total dividends and distributions......... (0.33) (1.15) (1.09) (1.18) (1.53)
-------- -------- -------- -------- -------
Net asset value, end of year........................ $ 20.22 $ 18.48 $ 17.56 $ 18.62 $ 16.72
======== ======== ======== ======== =======
Total return.............................. 11.2% 12.3% 0.0% 19.5% 21.5%
-------- -------- -------- -------- -------
Net assets, end of year (000)....................... $192,704 $166,061 $144,880 $105,635 $31,211
-------- -------- -------- -------- -------
Ratio of net operating expenses to average net
assets............................................ 0.84% 0.69% 0.66% 0.74% 0.86%
-------- -------- -------- -------- -------
Ratio of net operating expenses (excluding waivers)
to average net assets............................. 0.84% 0.72% 0.67% 0.74% 0.86%
-------- -------- -------- -------- -------
Ratio of net investment income to average net
assets............................................ 1.35% 1.86% 1.30% 1.06% 1.05%
-------- -------- -------- -------- -------
Ratio of net investment income (excluding waivers)
to average net assets............................. 1.35% 1.83% 1.29% 1.06% 1.05%
-------- -------- -------- -------- -------
Portfolio turnover.................................. 137% 70% 58% 70% 105%
-------- -------- -------- -------- -------
Average commission per share (a).................... $ 0.0480
--------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
125
<PAGE> 128
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.............. $ 28.06 $ 20.82 $ 21.35 $ 20.11 $ 17.56
---------- ---------- -------- -------- --------
Income from investment operations:
Net investment income......................... 0.59 0.40 0.40 0.46 0.25
Net realized and unrealized gain (loss) on
investments................................ 5.99 8.97 0.15 1.55 2.95
---------- ---------- -------- -------- --------
Total from investment operations...... 6.58 9.37 0.55 2.01 3.20
---------- ---------- -------- -------- --------
Less dividends and distributions:
Dividends to shareholders from net investment
income..................................... (0.06) (0.75) (0.46) (0.24) (0.27)
Distribution to shareholders from net capital
gains...................................... (0.27) (1.38) (0.62) (0.53) (0.38)
---------- ---------- -------- -------- --------
Total dividends and distributions..... (0.33) (2.13) (1.08) (0.77) (0.65)
---------- ---------- -------- -------- --------
Net asset value, end of year.................... $ 34.31 $ 28.06 $ 20.82 $ 21.35 $ 20.11
========== ========== ======== ======== ========
Total return.......................... 23.5% 46.9% 2.6% 10.4% 18.6%
---------- ---------- -------- -------- --------
Net assets, end of year (000)................... $1,935,343 $1,264,718 $689,252 $525,163 $236,175
---------- ---------- -------- -------- --------
Ratio of net operating expenses to average net
assets........................................ 0.74% 0.67% 0.64% 0.66% 0.69%
---------- ---------- -------- -------- --------
Ratio of net operating expenses (excluding
waivers) to average net assets................ 0.74% 0.67% 0.64% 0.66% 0.69%
---------- ---------- -------- -------- --------
Ratio of net investment income to average net
assets........................................ 2.16% 1.80% 2.23% 3.21% 2.06%
---------- ---------- -------- -------- --------
Ratio of net investment income (excluding
waivers) to average net assets................ 2.16% 1.80% 2.23% 3.21% 2.06%
---------- ---------- -------- -------- --------
Portfolio turnover.............................. 29% 31% 33% 21% 23%
---------- ---------- -------- -------- --------
Average commission per share (a)................ $ 0.0531
----------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
126
<PAGE> 129
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31, PERIOD OF
------------------- NOVEMBER 18, 1994-
1996 1995 DECEMBER 31, 1994
------- ------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of year................................... $ 5.39 $ 4.96 $ 5.00
------- ------- ------
Income from investment operations:
Net investment income........................................... 0.05 0.04 --
Net realized and unrealized gain (loss) on investments.......... 0.63 0.67 (0.04)
------- ------- ------
Total from investment operations........................... 0.68 0.71 (0.04)
------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net investment income............ -- (0.04) --
Distribution to shareholders from net capital gains............. (0.02) (0.24) --
------- ------- ------
Total dividends and distributions.......................... (0.02) (0.28) --
------- ------- ------
Net asset value, end of year......................................... $ 6.05 $ 5.39 $ 4.96
======= ======= ======
Total return............................................... 12.7% 14.6% (0.8)%**
------- ------- ------
Net assets, end of year (000)........................................ $52,768 $18,598 $ 3,247
------- ------- ------
Ratio of net operating expenses to average net assets................ 1.38% 1.55% 1.55%*
------- ------- ------
Ratio of net operating expenses (excluding waivers) to average net
assets............................................................. 1.38% 2.21% 8.85%*
------- ------- ------
Ratio of net investment income to average net assets................. 1.32% 1.17% 0.80%*
------- ------- ------
Ratio of net investment income (excluding waivers) to average net
assets............................................................. 1.32% 0.51% (6.34)%*
------- ------- ------
Portfolio turnover................................................... 21% 27% 0%
------- ------- ------
Average commission per share (a)..................................... $0.0224
-------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Annualized.
** Not Annualized.
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
127
<PAGE> 130
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED
DECEMBER 31, PERIOD OF
------------------- NOVEMBER 18, 1994-
1996 1995 DECEMBER 31, 1994
------- ------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of year................................... $ 5.31 $ 4.98 $ 5.00
------- ------- ------
Income from investment operations:
Net investment income........................................... 0.45 0.45 0.04
Net realized and unrealized gain (loss) on investments.......... 0.21 0.35 (0.01)
------- ------- ------
Total from investment operations........................... 0.66 0.80 0.03
------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net investment income............ (0.45) (0.45) (0.05)
Distribution to shareholders from net capital gains............. (0.01) (0.02) --
------- ------- ------
Total dividends and distributions.......................... (0.46) (0.47) (0.05)
------- ------- ------
Net asset value, end of year......................................... $ 5.51 $ 5.31 $ 4.98
------- ------- ------
Total return............................................... 12.9% 16.6% 0.5%**
------- ------- ------
Net assets, end of year (000)........................................ $34,411 $15,223 $1,421
------- ------- ------
Ratio of net operating expenses to average net assets................ 0.85% 0.85% 0.85%*
------- ------- ------
Ratio of net operating expenses (excluding waivers) to average net
assets............................................................. 0.94% 1.59% 7.80%*
------- ------- ------
Ratio of net investment income to average net assets................. 8.57% 8.51% 7.84%*
------- ------- ------
Ratio of net investment income (excluding waivers) to average net
assets............................................................. 8.48% 7.77% 0.80%*
------- ------- ------
Portfolio turnover................................................... 175% 115% 0%
------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Annualized.
** Not Annualized.
128
<PAGE> 131
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
1. ORGANIZATION OF THE TRUST
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 MONY Equity Master, a flexible premium
variable universal life insurance policy, both issued by MONY America, a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York, Inc.
("MONY"). The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its financial
statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments -- The Equity, Small Cap, Managed, International
Growth and High-Yield Bond Portfolios: Investment securities, other than debt
securities, listed on either a national or foreign 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.
Special Valuation Risk -- The high-yield securities in which the High-Yield
Bond Portfolio may invest may be considered speculative in regard 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.
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 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.
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, 1996.
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.
129
<PAGE> 132
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
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.
Expenses -- Each portfolio bears expenses incurred specifically on its
behalf as well as a portion of the common expenses of the Trust.
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.
Use of Estimates in Preparation of Financial Statement -- Preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities at the date of the financial
statement and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
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.
3. 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 enters into forward contracts only for
hedging purposes. At December 31, 1996, 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 from the
possible inability of counterparties to meet the terms of their contracts and
from movements in currency values. Outstanding contracts at December 31, 1996
are as follows.
<TABLE>
<CAPTION>
CONTRACT TO NET UNREALIZED
SETTLEMENT --------------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
- ---------- ----------------- ----------------- --------------
<S> <C> <C> <C>
1/17/97 USD 897,192 AUD 1,140,000 $ (8,721)
1/17/97 BEL 5,500,000 USD 181,818 (8,255)
1/17/97 USP 1,095,283 BEL 34,000,000 22,350
1/17/97 CAD 630,000 DEM 709,286 (846)
1/17/97 CHF 700,000 USD 588,631 (64,745)
1/17/97 USD 1,377,797 CHF 1,700,000 105,503
1/17/97 USD 2,330,091 DEM 3,500,000 53,062
1/17/97 DEM 1,100,000 USD 749,319 (33,681)
1/17/97 USD 574,035 ESP 73,000,000 11,988
1/17/97 USD 4,500,510 FRF 23,000,000 63,174
1/17/97 USD 577,481 GBP 375,000 (64,750)
1/17/97 USD 387,893 HKD 3,000,000 2
1/17/97 ITL 1,980,000,000 USD 1,276,513 27,490
1/17/97 USD 1,285,005 ITL 1,980,000,000 (18,998)
1/17/97 USD 4,504,124 JPY 485,000,000 306,142
1/17/97 JPY 300,000,000 USD 2,855,511 (258,821)
1/17/97 USD 2,785,813 NLG 4,700,000 60,490
1/17/97 NLG 300,000 USD 182,238 (8,281)
--------------
$183,103
===========
</TABLE>
Net unrealized appreciation on these contracts at December 31, 1996 is
included in receivable for foreign currency sold, net, in the accompanying
financial statements.
130
<PAGE> 133
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS 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 and is as follows: for each of the Equity, Small Cap, and
Managed Portfolios, .80% for the first $400 million, .75% for the next $400
million, and .70% for net assets over $800 million; .85% for the International
Growth Portfolio and .60% for the High-Yield Bond Portfolio. Prior to May 1,
1996, the advisory fee was .60% of net assets for the Equity, Small Cap and
Managed Portfolios.
Enterprise Capital has agreed to reimburse the Portfolios for expenses
incurred in excess of a percentage of average net assets. The percentages are as
follows: Equity -- .95% beginning May 1, 1996, Small Cap -- .95% beginning May
1, 1996, Managed -- .95% beginning May 1, 1996, International Growth
Portfolio -- 1.55% and High-Yield Bond Portfolio -- .85%.
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.
5. PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1996, purchases and sales proceeds of
investment securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
OBLIGATIONS STOCKS AND BONDS
--------------------- ---------------------------
PORTFOLIO PURCHASES SALES PURCHASES SALES
- ------------------------------------------------------------- ---------- -------- ------------ ------------
<S> <C> <C> <C> <C>
Equity....................................................... -- -- $148,840,825 $ 57,945,028
Small Cap.................................................... -- -- 238,027,032 215,099,853
Managed...................................................... -- -- 671,652,658 400,834,012
International Growth......................................... -- -- 35,531,628 6,880,709
High-Yield Bond.............................................. $1,008,179 $999,102 55,879,483 39,536,822
</TABLE>
6. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS AND DISTRIBUTIONS
At December 31, 1996, the composition of unrealized appreciation
(depreciation) of investment securities and the cost of investment for Federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
NET APPRECIATION
PORTFOLIO TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- --------------------------------------------------- -------------- -------------- ------------ ----------------
<S> <C> <C> <C> <C>
Equity............................................. $ 248,752,199 $ 73,418,350 $ (2,482,109) $ 70,936,241
Small Cap.......................................... 195,154,775 12,301,190 (14,667,010) (2,365,820)
Managed............................................ 1,411,155,370 563,491,741 (41,791,469) 521,700,272
International Growth............................... 49,732,984 5,109,830 (2,038,600) 3,071,230
High-Yield Bond.................................... 32,660,614 1,169,931 (93,411) 1,076,520
</TABLE>
The capital gains dividend distribution paid to shareholders, taken in
additional shares, is as follows:
<TABLE>
<CAPTION>
LONG TERM
CAPITAL
GAINS
----------
<S> <C>
Equity Portfolio............................................................................... $ 971,495
Small Cap Portfolio............................................................................ 2,010,188
Managed Portfolio.............................................................................. 9,271,826
International Growth Portfolio................................................................. 15,310
</TABLE>
131
<PAGE> 134
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
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 investments in passive foreign investment companies 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.
132
<PAGE> 135
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 portfolios 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, 1996 and 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 the financial
highlights for each of the three 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 two 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, 1996 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, 1996, 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, and their financial highlights for
each of the three years in the period then ended in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Atlanta, Georgia
February 20, 1997
133
<PAGE> 136
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.
134
<PAGE> 137
OCC ACCUMULATION TRUST
MANAGED BY
[LOGO]
We are pleased to report on the 1996 investment activities and results of
the portfolios in the OCC Accumulation Trust. The objective of the portfolios is
to provide above-average returns with below-average risk by adhering to a
disciplined value approach in buying securities. The portfolios are intended for
the long-term investor seeking to preserve capital and make it grow.
The year was an excellent one for investors in stocks, as the market
continued to rise in a favorable environment of low inflation, slow economic
growth and generally low interest rates. The equity portfolios in the Trust
performed well, delivering returns that generally matched or exceeded their
benchmarks. In managing these portfolios, we invest for the long term in what we
perceive to be superior, undervalued businesses. We do not attempt to forecast
the stock market. Instead, we focus on individual companies and where their
businesses are going over the next several years, not on where the stock market
is heading in the next quarter.
The bond market, by contrast, provided only modest returns in 1996. There
were recurrent investor concerns throughout the year that the economy might
overheat and, if so, that inflation might increase and bond prices might fall.
Economic growth was, in fact, moderate and inflation remained in check.
Nonetheless, these concerns led to relatively weak bond prices. We weathered
these difficult market conditions reasonably well, maintaining a defensive
posture by keeping average maturities short. Prices of shorter maturities tend
to fall less than those of longer maturities in a declining bond market.
135
<PAGE> 138
EQUITY PORTFOLIO
The Equity Portfolio had another excellent year in 1996, providing a total
return of 23.4%, exceeding the total return of 23.0% for the Standard & Poor's
500 Index with dividends included (S&P 500), an unmanaged index of 500 of the
largest corporations weighted by market capitalization. The Portfolio's
performance was eighth among the 41 capital appreciation funds in Lipper's
Variable Insurance Products Performance Analysis Service Report. This strong
relative performance was achieved despite the Portfolio's conservative
investment posture, including a sizable cash position.
We attained these results by remaining disciplined in our value approach
even as the stock market advanced to new highs. The stocks owned by the
Portfolio had an average price-earnings ratio of 14.2 at the end of 1996, a
significant discount from the price-earnings ratio of 19.5 for the S&P 500.
Despite this discount, the companies in the Portfolio generate what we believe
to be high and sustainable levels of earnings and cash flow. By investing in
quality, undervalued businesses, we seek to control risk and outperform the
market over time. We believe the quality of the businesses we own, their low
relative valuations and the ability of company managements to maximize
shareholder returns will help us limit risk and have significant opportunity for
reward.
The Portfolio has produced above-market returns over extended periods. For
the five years ended December 31, 1996, the Portfolio provided an average annual
total return of 17.7%*, exceeding the 15.2% average annual total return of the
S&P 500. The Portfolio's five-year performance ranked fourth among the 19
portfolios in the Lipper capital appreciation category. The Portfolio's average
annual total return from its inception on August 1, 1988 through December 31,
1996 was 16.5%*, compared with 16.1% for the S&P 500. Returns for the Portfolio
take into account expenses incurred by the Portfolio, but not separate account
charges imposed by the insurance company.
The Portfolio owns a diverse group of undervalued companies with superior
business characteristics. A "superior" company, in our view, has a powerful
competitive position, a well-thought-out business strategy, excellent earnings
and high cash flow, and a shareholder-oriented management. We continue to find a
number of undervalued quality companies in the insurance, banking and other
financial services sectors. Our holdings of these companies represented more
than one-third of the Portfolio's net assets at the end of the year. Each of the
financial companies we own has a unique business franchise with competitive
advantages, such as low-cost distribution, highly automated processing, dominant
market share and/or high customer retention. In all cases, company management is
focused on using the company's cash flow to increase shareholder value. Business
results of these companies have continued to improve regardless of the interest
rate environment. The five stocks which contributed most to the Portfolio's
performance in the 1996 second half were ACE, Ltd., McDonnell Douglas Corp., Mid
Ocean Ltd., Federal Home Loan Mortgage Corp. (Freddie Mac) and Citicorp. With
the exception of McDonnell Douglas, all are financial services companies.
Apart from financial services stocks, one of our newly established
investments in the second half of 1996 was McDonald's Corp., the fast-food
chain. We like McDonald's because its undisputed leadership in overseas markets
gives it the opportunity to invest very large sums of money at high long-term
returns. We believe these favorable returns are momentarily masked by the
startup expenses associated with the rapid growth of new stores. As a result,
this quality stock is available at an attractive price.
Other new positions in the half were Armstrong World Industries, Inc.,
Canadian Pacific, Ltd., Carnival Corp., CSX Corp., General Re Corp., OrNda
Healthcorp (an inexpensive way to increase our investment in Tenet Healthcare
Corp., which is acquiring OrNda in a friendly transaction) and Tenneco, Inc. We
added to existing positions in ACE, Ltd., Caterpillar, Inc., Columbia/HCA
Healthcare Corp., R.R. Donnelley & Sons Co., EXEL Ltd., Hercules, Inc. and Lucas
Varity PLC (ADRs).
During the half, we eliminated the Portfolio's holdings of AlliedSignal,
Inc., American Express Co., Norfolk Southern Corp. and Transamerica Corp.
Reductions included Electronic Arts, Inc., Federal Home Loan Mortgage Corp. and
Mid Ocean Ltd.
As of December 31, 1996, assets were allocated 88% to common stocks and 12%
to cash and cash equivalents. The Portfolio's five largest equity positions at
the end of the year were ACE, Ltd., a Bermuda-
136
<PAGE> 139
based provider of excess liability insurance, representing 4.8% of the
Portfolio's net assets; EXEL Ltd., a strongly capitalized specialty insurance
company, also based in Bermuda, 4.7% of net assets; Wells Fargo & Co., a leading
bank in the Western United States, 4.1% of net assets; Caterpillar, Inc., which
manufactures earth-moving equipment and diesel engines, 3.4% of net assets; and
Citicorp, a leading bank, 3.4% of net assets.
Major industry positions were in the insurance sector, 23.2% of the
Portfolio's net assets; banking, 7.5% of net assets; miscellaneous financial
services, 5.7% of net assets; transportation, 5.3% of net assets; and
manufacturing, 4.9% of net assets.
- ---------------
* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"), was
effectively divided into two investment funds -- the Old Trust and the present
OCC 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 period prior to September 16, 1994, the performance
figures for the Equity Portfolio of the Present Trust reflect the performance of
the Equity Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
OCC ACCUMULATION TRUST EQUITY PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/96 AND TOTAL RETURN ON S&P 500 INDEX+
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Equity Portfolio S & P 500 Index *
<S> <C> <C>
8/1/88 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
12/31/96 36264 35095
</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.
137
<PAGE> 140
SMALL CAP PORTFOLIO
The Small Cap Portfolio delivered a total return of 18.7% in 1996,
exceeding the total return of 16.5% for the Russell 2000 Index with dividends
included (Russell 2000), a widely followed benchmark which includes smaller
capitalization stocks. The Portfolio invests in undervalued smaller companies
with strong competitive positions, high returns on capital and
shareholder-oriented managements. Its favorable relative performance in 1996 was
achieved despite having a relatively high cash position during the year.
The Portfolio's performance for the year was slightly behind the 19.9%
average total return for the small company growth funds in Lipper's Variable
Insurance Products Performance Analysis Service Report. It ranked 23rd among the
40 funds in this Lipper universe. As the small cap market became less
speculative in the second half of the year, the Portfolio significantly
outperformed the market and its peers. It provided a total return of 9.4% in the
1996 second half compared with 5.6% for the Russell 2000, and its return of 6.5%
in the fourth quarter compared with an average of 1.8% for the funds in the
Lipper small company growth funds category.
For the five years ended December 31, 1996, the Portfolio provided an
average annual total return of 14.5%*, compared with the 15.6% average annual
total return for the Russell 2000. The Portfolio's five-year performance was
third among eight funds in the Lipper small company growth funds category. From
its inception on August 1, 1988 through December 31, 1996, the Portfolio
generated an average annual total return of 14.7%*, exceeding the 13.0% average
annual total return for the Russell 2000. Returns for the Portfolio take into
account expenses incurred by the Portfolio, but not separate account charges
imposed by the insurance company.
We invest in smaller companies for long-term growth. Even when the small
cap market reached a high speculative pitch in the first half of 1996, we did
not stray from our value style. By being disciplined, patient investors, we seek
to outperform the Russell 2000 and provide excellent returns for investors with
below-market risk.
We continue to find excellent smaller companies available at reasonable
valuations. Vital Signs, Inc., one of the Portfolio's newer investments, is an
example. The company manufactures consumable medical products, such as face
masks and breathing circuits, used in anesthesia, respiratory and critical care
applications. Even at a time of cost pressures in the health care market, we own
the stock because of its high returns (28% cash flow on operating assets),
strong new product program and long-term contracts with hospital supply groups.
Like many of our portfolio companies, it holds leading market shares in its
products, and this provides competitive advantages. Also like many, it is
increasing shareholder value by using cash to repurchase stock. Moreover, in a
consolidating industry, Vital Signs is acquiring products which it can sell
through its distribution channels at only modest additional distribution cost.
All in all, this is an outstanding company with high insider ownership, which we
believe results in the interests of management being aligned with those of
shareholders, strong new product flow and a reasonable valuation (about 15 times
estimated fiscal 1997 earnings).
In addition to our investment in Vital Signs, we established new positions
during the second half in such stocks as American Radio Systems Corp., Dal-Tile
International, Inc., Jason, Inc., Tracor, Inc. and Wang Laboratories, Inc. We
reduced or eliminated the Portfolio's holdings of Capitol American Financial
Corp., Martin Marietta Materials, Inc., Noble Drilling Co., Omnicom Group, Inc.
and Singer Co. N.V.
As of December 31, 1996, the Portfolio's net assets were allocated 83% to
common stocks and securities convertible into common stocks and 17% to cash and
cash equivalents. The five largest equity positions as of December 31, 1996 were
Magellan Health Services, Inc., the largest behavioral health care company in
the U.S., representing 4.3% of the Portfolio's net assets; BancTec, Inc., which
provides automated processing systems to the banking industry, 3.8% of net
assets; SpaceLabs, Inc., a medical devices company, 3.8% of net assets; EG&G,
Inc., a supplier of technology products and services to manufacturers and end
users in industry and government, 3.3% of net assets; and Wang Laboratories,
Inc., a software developer, 3.0% of net assets. Major industry positions were in
the insurance sector, 14.4% of net assets; electrical equipment, 10.6% of net
138
<PAGE> 141
assets; manufacturing, 8.0% of net assets; drugs and medical products, 5.9% of
net assets; and energy, 5.1% of net assets.
- ---------------
* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"), was
effectively divided into two investment funds -- the Old Trust and the present
OCC 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 period prior to September 16, 1994, the
performance figures for the Small Cap Portfolio of the Present Trust reflect the
performance of the Small Cap Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
OCC ACCUMULATION TRUST SMALL CAP PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/96 AND TOTAL RETURN ON RUSSELL 2000 INDEX+
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Small Cap Portfolio Russell 2000 Index
<S> <C> <C>
8/1/88 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
12/31/96 31696 28099
</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.
139
<PAGE> 142
MANAGED PORTFOLIO
Continuing its superior long-term performance, the Managed Portfolio
provided a total return of 22.8% in 1996. This return was slightly below the
total return of 23.0% for the Standard & Poor's 500 Index with dividends
included (S&P 500), an unmanaged index of 500 of the largest corporations
weighted by market capitalization, and substantially above the 13.9% average
total return of the funds in Lipper's Variable Insurance Products Performance
Analysis Service Report flexible portfolio funds category. The Portfolio ranked
fifth among the 76 funds in this Lipper universe.
The Portfolio invests in stocks, bonds and cash equivalents, with a bias
toward stocks, which have outperformed other classes of investments for nearly
every five-year period since the Depression.
The Portfolio has delivered consistently excellent returns over time. For
the five years ended December 31, 1996, the Portfolio's average annual total
return of 19.1%* exceeded the 15.2% average annual total return of the S&P 500.
This five-year performance was second best among the 54 flexible portfolio funds
in the Lipper universe. From inception on August 1, 1988 through December 31,
1996, the Portfolio delivered an average annual total return of 20.1%*,
surpassing the 16.1% average annual total return for the S&P 500. Returns for
the Portfolio take into account expenses incurred by the Portfolio, but not
separate account charges imposed by the insurance company.
Our investment philosophy is based on the concept that the single most
important determinant of whether a stock will increase in value is the rate of
return on invested capital within the company. We believe companies with high
returns can increase their value for extended periods. We therefore look for
companies with above-average returns where those returns are protected by strong
competitive positions, and we want to buy those companies at what we consider to
be reasonable prices.
The Portfolio has been a long-term investor in McDonnell Douglas Corp., its
second largest position at the end of the year. In December 1996, Boeing Co.
reached agreement to acquire McDonnell Douglas in a friendly transaction. We
believe the deal is good for both companies. Boeing will acquire the production
capacity, technical skills and products of McDonnell Douglas, while McDonnell
Douglas shareholders will receive a significant premium over market. The
transaction is expected to close late in the 1997 first quarter or early in the
second.
The Portfolio has substantial holdings of high-quality financial services
stocks, including banks and insurance companies. These companies, including
Wells Fargo & Co., Federal Home Loan Mortgage Corp. (Freddie Mac) and Citicorp,
are positioned for higher earnings in 1997 and 1998 and, on top of that, are
increasing value by repurchasing shares.
Because we tend to hold stocks for the long term, rather than trading in
and out of the market, there was relatively little portfolio activity in the
1996 second half. We established new positions in ACE, Ltd., Caterpillar, Inc.,
R.R. Donnelley & Sons Co., McDonald's Corp. and Tele-Communications, Inc. (Class
A). We sold the Portfolio's investments in Mellon Bank Corp. and Reebok
International Ltd. and reduced its position in Intel Corp., among others.
At year end, the Portfolio's net assets were allocated 86% to common stocks
and securities convertible into common stocks, 1% to Treasury notes and bonds,
and 13% to cash and equivalents. The five largest equity positions were: Wells
Fargo & Co., a leading bank in the Western United States, representing 6.1% of
the Portfolio's net assets; McDonnell Douglas Corp., the nation's largest
manufacturer of military aircraft and an important competitor in commercial
aircraft, 5.3% of net assets; Federal Home Loan Mortgage Corp. (Freddie Mac),
the second largest insurer of home mortgages in the United States, 4.7% of net
assets; Citicorp, a leading bank and financial services company, 4.6% of net
assets; and du Pont (E. I.) de Nemours & Company, a major industrial company
operating in chemicals, fibers, polymers, petroleum and diversified businesses,
4.3% of net assets.
140
<PAGE> 143
Major industry positions were in the banking sector, 12.3% of the
Portfolio's net assets; miscellaneous financial services, 12.1% of net assets;
chemicals, 8.4% of net assets; aerospace and defense, 7.5% of net assets; and
insurance, 6.6% of net assets.
- ---------------
* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"), was
effectively divided into two investment funds -- the Old Trust and the present
OCC 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 $51,345,102 in the
Present Trust. For the period prior to September 16, 1994, the performance
figures for the Managed Portfolio of the Present Trust reflect the performance
of the Managed Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
OCC ACCUMULATION TRUST MANAGED PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/96 AND TOTAL RETURN ON S&P 500 INDEX+
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Managed Portfolio S&P 500 Index
<S> <C> <C>
8/1/88 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
12/31/96 46755 35095
</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.
141
<PAGE> 144
BOND PORTFOLIO
The Bond Portfolio invests in a diversified group of quality debt
securities, corporate and government. Reflecting the bond market's weakness in
1996, the Portfolio had a total return (dividends paid and change in net asset
value assuming the reinvestment of dividends) of 2.2% in the year. This compared
with the total return of 3.6% for the Lehman Brothers Aggregate Bond Index
(Aggregate Index), a widely followed benchmark. The Portfolio's performance was
29th among the 35 corporate bond funds/BBB-rated in Lipper's Variable Insurance
Products Performance Analysis Service Report.
In the five years ended December 31, 1996, the Portfolio produced an
average annual total return of 5.5%*, versus 7.4% for the Aggregate Index. Since
its inception on August 1, 1988, the Portfolio has generated an average annual
total return of 7.2%*. These returns take into account expenses incurred by the
Portfolio, but not separate account charges imposed by the insurance company.
A proposal has been made to substitute shares of the U.S. Government Income
Portfolio of the OCC Accumulation Trust for shares of the Bond Portfolio. It is
anticipated that necessary approvals will be granted and the substitution will
be completed late in the first quarter of 1997.
As of December 31, 1996, the Bond Portfolio was invested 26% in corporate
notes and bonds, 35% in mortgage-related securities, 36% in Treasury notes and
bonds, and 3% in other assets. We maintained a defensive investment posture
throughout the 1996 first half by keeping the Portfolio's average maturity
relatively short, then increased the average maturity in the second half of the
year to capture higher yields. The effective average maturity of the Portfolio
was approximately 7.4 years as of December 31, 1996.
- ---------------
* Based on results of the OCC Accumulation Trust and its predecessor. On
September 16, 1994, an investment company which had commenced operations on
August 1, 1988, called Quest for Value Accumulation Trust (the "Old Trust"),
was effectively divided into two investment funds -- the Old Trust and the
present OCC 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 period prior to September 16, 1994, the performance figures for
the Bond Portfolio of the Present Trust reflect the performance of the Bond
Portfolio of the Old Trust.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
OCC ACCUMULATION TRUST BOND PORTFOLIO FROM INCEPTION (8/1/88)*
THROUGH 12/31/96 AND TOTAL RETURN ON LEHMAN AGGREGATE BOND INDEX+
<TABLE>
<CAPTION>
Measurement Period Lehman B
(Fiscal Year Covered) Bond Portfolio Bond Index
<S> <C> <C>
8/1/88 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
12/31/96 17951 20844
</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.
142
<PAGE> 145
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 4.6% as of December 31, 1996. The average dollar-weighted
portfolio maturity was 40 days.
We manage the Portfolio conservatively, recognizing that shareholders of
money market funds view liquidity and safety of principal as their most
important objectives. Safety of principal is our first priority. 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, 1996, 72% of the Portfolio's assets were
allocated to short-term corporate notes, with the remaining assets invested in
U.S. Government agency 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.
143
<PAGE> 146
OCC ACCUMULATION TRUST DECEMBER 31, 1996
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS
- ------------------------------------------------------
- -----------------------------------------------------
EQUITY PORTFOLIO
<TABLE>
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE -- 1.6%
$ 320,000 Federal Home Loan Bank,
5.19%, 1/9/97
(cost -- $319,631) $ 319,631
-----------
SHORT-TERM CORPORATE NOTES -- 12.9%
AUTOMOTIVE -- 4.5%
$ 900,000 Ford Motor Credit Co.,
5.40%, 1/28/97 $ 896,355
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 5.6%
470,000 Household Finance Corp.,
5.34%, 1/7/97 469,582
640,000 Prudential Funding Corp.,
5.62%, 1/8/97 639,301
-----------
1,108,883
-----------
TECHNOLOGY -- 2.8%
IBM Credit Corp.,
155,000 5.22%, 1/7/97 154,865
290,000 5.32%, 1/7/97 289,743
118,000 5.46%, 1/7/97 117,892
-----------
562,500
-----------
Total Short-Term Corporate Notes
(cost -- $ 2,567,738) $ 2,567,738
-----------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 87.5%
AEROSPACE/DEFENSE -- 4.7%
5,000 Lockheed Martin Corp. $ 457,500
7,494 McDonnell Douglas Corp. 479,616
-----------
937,116
-----------
BANKING -- 7.5%
6,556 Citicorp 675,268
3,033 Wells Fargo & Co. 818,152
-----------
1,493,420
-----------
CHEMICALS -- 3.6%
2,000 du Pont (E.I.) de Nemours & Co. 188,750
7,698 Hercules, Inc. 332,939
4,910 Monsanto Co. 190,876
-----------
712,565
-----------
CONGLOMERATES -- 2.8%
2,156 General Electric Co. 213,174
7,500 Tenneco, Inc.* 338,437
-----------
551,611
-----------
CONSUMER PRODUCTS -- 2.1%
3,844 Avon Products, Inc. 219,589
6,843 Mattel, Inc. 189,893
-----------
409,482
-----------
DRUGS & MEDICAL PRODUCTS -- 3.1%
14,042 Becton, Dickinson & Co. 609,072
-----------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
ELECTRONICS -- 2.7%
7,038 Arrow Electronics, Inc.* $ 376,533
5,000 Electronic Arts, Inc.* 149,687
-----------
526,220
-----------
ENERGY -- 1.4%
698 El Paso Natural Gas Co. 35,224
4,996 Triton Energy Ltd.* 242,306
-----------
277,530
-----------
ENTERTAINMENT -- .1%
1,700 TCI Satellite Entertainment,
Inc.* 16,787
-----------
FOOD SERVICES -- 2.4%
10,500 McDonald's Corp. 475,125
-----------
HEALTH & HOSPITALS -- 4.8%
12,000 Columbia/HCA Healthcare Corp. 489,000
5,000 OrNda HealthCorp.* 146,250
14,000 Tenet Healthcare Corp.* 306,250
-----------
941,500
-----------
INSURANCE -- 23.2%
15,700 ACE Ltd. 943,963
7,372 AFLAC, Inc. 315,153
3,262 American International Group,
Inc. 353,112
17,000 Everest Reinsurance Holdings,
Inc. 488,750
24,452 EXEL Ltd. 926,119
2,000 General Re Corp. 315,500
10,000 Mid Ocean Ltd. 525,000
4,579 Progressive Corp. (Ohio) 308,510
13,000 RenaissanceRe Holdings Ltd. 429,000
-----------
4,605,107
-----------
LEISURE -- 2.3%
14,000 Carnival Corp. 462,000
-----------
MACHINERY/ENGINEERING -- 3.4%
9,000 Caterpillar, Inc. 677,250
-----------
MANUFACTURING -- 4.9%
3,000 Armstrong World Industries,
Inc. 208,500
17,560 LucasVarity Corp. PLC ADR* 667,280
8,000 Shaw Industries, Inc. 94,000
-----------
969,780
-----------
METALS & MINING -- .3%
2,145 Freeport McMoRan Copper & Gold
(Class B) 64,082
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 5.7%
19,912 Countrywide Credit Industries,
Inc. 569,981
5,155 Federal Home Loan Mortgage Corp. 567,694
-----------
1,137,675
-----------
PRINTING/PUBLISHING -- 1.7%
11,000 Donnelley (R.R.) & Sons Co. 345,125
-----------
RETAIL -- 2.6%
10,888 May Department Stores Co. 509,014
-----------
TELECOMMUNICATIONS -- 2.9%
6,000 Sprint Corp. 239,250
25,000 Tele-Communications, Inc. (Class
A)* 326,563
-----------
565,813
-----------
</TABLE>
* Non-income producing security.
144
<PAGE> 147
OCC ACCUMULATION TRUST DECEMBER 31, 1996
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION -- 5.3%
4,300 AMR Corp.* $ 378,938
13,000 Canadian Pacific Ltd. 344,500
8,000 CSX Corp. 338,000
-----------
1,061,438
-----------
Total Common Stocks
(cost -- $13,605,569) $17,347,712
-----------
Total Investments
(cost -- $16,492,938) 102.0% $20,235,081
Other Liabilities in Excess of
Other Assets (2.0) (392,083)
----- -----------
Total Net Assets 100.0% $19,842,998
===== ==========
</TABLE>
- ------------------------------------------------------
- -----------------------------------------------------
SMALL CAP PORTFOLIO
<TABLE>
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE - .7%
$ 230,000 Federal Home Loan
Mortgage Corp.,
5.23%, 1/2/97
(cost -- $229,967) $ 229,967
-----------
SHORT-TERM CORPORATE NOTES -- 16.8%
AUTOMOTIVE -- 2.5%
Ford Motor Credit Co.,
$ 345,000 5.40%, 1/28/97 $ 343,603
500,000 5.62%, 1/2/97 499,922
-----------
843,525
-----------
BANKING -- 1.9%
670,000 Norwest Financial, Inc.,
5.51%, 1/22/97 667,846
-----------
CONGLOMERATES -- 3.7%
1,275,000 General Electric Capital Corp.,
5.35%, 1/30/97 1,269,505
-----------
MACHINERY/ENGINEERING -- 3.5%
1,210,000 Deere (John) Capital Corp.,
5.38%, 1/22/97 1,206,203
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 1.5%
500,000 Beneficial Corp.,
5.52%, 1/28/97 497,930
-----------
TECHNOLOGY -- 3.7%
IBM Credit Corp.,
370,000 5.31%, 1/6/97 369,727
900,000 5.32%, 1/6/97 899,335
-----------
1,269,062
-----------
Total Short-Term Corporate Notes
(cost -- $5,754,071) $5,754,071
-----------
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
CORPORATE NOTE -- .1%
AUTOMOTIVE -- .1%
$ 2,148 Collins Industries, Inc.,
8.75%, 1/11/00
(cost -- $2,148) $ 1,995
-----------
CONVERTIBLE CORPORATE BOND -- .1%
REAL ESTATE -- .1%
$ 49,995 Security Capital Group, Inc.,
12.00%, 6/30/14(A)
(cost -- $45,364) $ 60,481
-----------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK -- .2%
TRANSPORTATION -- .2%
825 Interpool, Inc., 5.75%, Conv.
Pfd.
(cost -- $62,700) $ 84,150
-----------
COMMON STOCKS -- 82.2%
ADVERTISING -- 2.4%
71,900 Katz Media Group, Inc.* $ 808,875
-----------
AEROSPACE/DEFENSE -- 1.2%
19,000 Tracor, Inc.* 403,750
-----------
AUTOMOTIVE -- 2.5%
14,400 Borg-Warner Automotive, Inc. 554,400
45,000 Jason, Inc.* 292,500
-----------
846,900
-----------
BANKING -- .5%
6,800 First Financial Caribbean Corp. 188,700
-----------
BUILDING & CONSTRUCTION -- 1.0%
16,400 Dal-Tile International, Inc.* 334,150
-----------
CHEMICALS -- 1.1%
10,500 McWhorter Technologies, Inc.* 240,187
9,800 Sybron Chemicals, Inc.* 156,800
-----------
396,987
-----------
COMPUTER SERVICES -- 3.8%
63,867 BancTec, Inc.* 1,317,257
-----------
DRUGS & MEDICAL PRODUCTS -- 5.9%
5,000 Dentsply International, Inc. 237,500
62,800 SpaceLabs Medical, Inc.* 1,287,400
19,700 Vital Signs, Inc. 512,200
-----------
2,037,100
-----------
ELECTRICAL EQUIPMENT -- 10.6%
9,200 Arrow Electronics, Inc.* 492,200
5,300 AVX Corp. 113,950
56,800 EG&G, Inc. 1,143,100
43,000 Exar Corp.* 666,500
19,100 Marshall Industries* 584,937
27,720 Oak Industries, Inc.* 637,560
-----------
3,638,247
-----------
</TABLE>
* Non-income producing security.
145
<PAGE> 148
OCC ACCUMULATION TRUST DECEMBER 31, 1996
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ENERGY -- 5.1%
17,948 Aquila Gas Pipeline Corp. $ 284,924
3,300 Belden & Blake Corp.* 84,150
10,000 Nuevo Energy Co.* 520,000
21,300 Petroleum Heat & Power
Company, Inc. (Class A) 135,788
9,640 Seagull Energy Corp.* 212,080
12,500 St. Mary Land & Exploration Co. 310,938
4,000 Triton Energy Ltd.* 194,000
-----------
1,741,880
-----------
HEALTH & HOSPITALS -- 5.0%
65,200 Magellan Health Services, Inc* 1,458,850
14,800 Summit Care Corp.* 242,350
-----------
1,701,200
-----------
INSURANCE -- 14.4%
9,400 ACE Ltd. 565,175
38,100 Capsure Holdings Corp.* 433,388
20,600 Delphi Financial Group, Inc. 607,700
10,900 Everest Reinsurance Holdings,
Inc. 313,375
50,300 E.W. Blanch Holdings, Inc. 1,012,287
17,200 Gryphon Holdings, Inc. 242,950
17,000 Horace Mann Educators Corp. 686,375
7,100 Protective Life Corp. 283,112
18,200 United Wisconsin Services, Inc. 477,750
6,000 W.R. Berkley Corp. 304,500
-----------
4,926,612
-----------
MACHINERY/ENGINEERING -- 2.1%
30,200 United Dominion Industries,
Ltd. 709,700
-----------
MANUFACTURING -- 8.0%
13,600 Alltrista Corp.* 350,200
139,200 Baldwin Technology Co. (Class
A)* 348,000
6,500 Briggs & Stratton Corp. 286,000
4,500 Carlisle Companies, Inc. 272,250
15,750 Crane Co. 456,750
59,500 Easco, Inc. 453,687
31,200 Exabyte Corp.* 417,300
5,200 Greenfield Industries, Inc. 159,250
-----------
2,743,437
-----------
MEDIA/BROADCASTING -- .6%
7,500 American Radio Systems Corp.* 204,375
-----------
PAPER PRODUCTS -- 2.4%
143,800 Repap Enterprises, Inc.* 399,944
21,000 Shorewood Packaging Corp.* 409,500
-----------
809,444
-----------
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
PRINTING & PUBLISHING -- 2.9%
15,300 International Imaging
Materials, Inc.* $ 348,075
63,400 Nu-Kote Holdings, Inc. (Class
A)* 649,850
-----------
997,925
-----------
REAL ESTATE -- 3.6%
15,291 Cousins Properties, Inc. 430,059
66 Security Capital Group, Inc. (A) 82,156
20,200 Security Capital Industrial
Trust, Inc. 431,775
12,752 Security Capital Pacific Trust 291,702
-----------
1,235,692
-----------
RETAIL -- .4%
8,500 Maxim Group, Inc.* 148,750
-----------
TECHNOLOGY -- 4.1%
11,000 Channell Commercial Corp.* 136,125
8,000 Unitrode Corp.* 235,000
51,400 Wang Laboratories, Inc.* 1,040,850
-----------
1,411,975
-----------
TELECOMMUNICATIONS -- .6%
10,100 ECI Telecom Ltd. 214,625
-----------
TEXTILES/APPAREL -- 1.7%
19,000 Westpoint Stevens, Inc. (Class
A)* 567,625
-----------
TOBACCO/BEVERAGES/FOOD PRODUCTS -- .2%
6,000 Sylvan Foods Holdings, Inc.* 78,000
-----------
TRANSPORTATION -- 1.6%
12,200 Interpool, Inc. 285,175
13,100 MTL, Inc.* 265,275
-----------
550,450
-----------
OTHER -- .5%
6,150 McGrath RentCorp 158,363
-----------
Total Common Stocks
(cost -- $24,953,214) $28,172,019
-----------
Total Investments
(cost -- $31,047,464) 100.1% $34,302,683
Other Liabilities in Excess of
Other Assets (0.1) (46,012)
----- -----------
Total Net Assets 100.0% $34,256,671
===== ==========
</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 AVERAGE FAIR VALUE AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST DECEMBER 31, 1996
---------------------------------------------- ----------- ------- ------ ------- -----------------
<S> <C> <C> <C> <C> <C>
Security Capital Group, Inc. 12.00%, 6/30/14 9/16/94 $49,995 -- $ 91 $ 120
Security Capital Group, Inc. Common Stock 9/16/94 -- 66 949 1,245
</TABLE>
146
<PAGE> 149
OCC ACCUMULATION TRUST DECEMBER 31, 1996
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
- ------------------------------------------------------
- -----------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES -- 13.6%
AUTOMOTIVE -- 3.8%
$6,870,000 Ford Motor Credit Co.,
5.42%, 1/6/97 $ 6,864,828
------------
CONGLOMERATES -- 4.3%
7,680,000 General Electric Capital
Corp.,
5.39%, 1/7/97 7,673,101
------------
INSURANCE -- .3%
555,000 Marsh & McLennan Co., Inc.,
6.55%, 1/2/97 554,899
------------
MISCELLANEOUS FINANCIAL SERVICES -- 5.2%
Household Finance Corp.,
130,000 5.34%, 1/7/97 129,884
3,300,000 5.45%, 1/7/97 3,297,003
6,000,000 Merrill Lynch & Co., Inc.,
5.70%, 1/6/97 5,995,250
------------
9,422,137
------------
Total Short-Term Corporate Notes
(cost -- $ 24,514,965) $ 24,514,965
------------
U.S. TREASURY NOTES AND BONDS -- .9%
$ 700,000 6.25%, 8/15/23 $ 656,250
630,000 7.875%, 4/15/98 646,437
297,500 7.875%, 8/15/01 317,117
------------
Total U.S. Treasury Notes and Bonds
(cost -- $1,514,907) $ 1,619,804
------------
CONVERTIBLE CORPORATE BOND -- .4%
REAL ESTATE -- .4%
$ 614,371 Security Capital Group, Inc.,
12.00%, 6/30/14(A)
(cost -- $557,508) $ 743,231
------------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK -- .0%
RETAIL -- .0%
2,478 Venture Stores, Inc.,
$3.25 Conv. Pfd.
(cost -- $102,527) $ 45,533
------------
COMMON STOCKS -- 85.4%
AEROSPACE/DEFENSE -- 7.5%
43,200 Lockheed Martin Corp. $ 3,952,800
150,000 McDonnell Douglas Corp. 9,600,000
------------
13,552,800
------------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
BANKING -- 12.3%
80,000 Citicorp $ 8,240,000
10,000 First Empire State Corp. 2,880,000
41,200 Wells Fargo & Co. 11,113,700
------------
22,233,700
------------
BUILDING & CONSTRUCTION -- .3%
31,680 Newport News
Shipbuilding Inc.* 475,200
------------
CHEMICALS -- 8.4%
83,000 du Pont (E.I.) de Nemours &
Co. 7,833,125
100,000 Hercules, Inc. 4,325,000
80,000 Monsanto Co. 3,110,000
------------
15,268,125
------------
CONGLOMERATES -- 4.1%
164,200 Tenneco, Inc. 7,409,525
------------
CONSUMER PRODUCTS -- 3.6%
236,200 Mattel, Inc. 6,554,550
------------
DRUGS & MEDICAL PRODUCTS -- 3.1%
130,000 Becton, Dickinson & Co. 5,638,750
------------
ENERGY -- 2.7%
55,300 Triton Energy Ltd.* 2,682,050
73,091 Union Pacific Resources
Group, Inc. 2,137,912
------------
4,819,962
------------
FOOD SERVICES -- 3.2%
127,700 McDonald's Corp. 5,778,425
------------
INSURANCE -- 6.6%
60,000 ACE Ltd. 3,607,500
138,600 EXEL Ltd. 5,249,475
15,400 Transamerica Corp. 1,216,600
41,200 Travelers Group, Inc. 1,869,450
------------
11,943,025
------------
MANUFACTURING -- 2.3%
54,700 Catepillar, Inc. 4,116,175
------------
METALS & MINING -- 3.2%
196,100 Freeport McMoRan Copper &
Gold (Class B) 5,858,487
------------
MISCELLANEOUS FINANCIAL SERVICES -- 12.1%
57,200 American Express Co. 3,231,800
161,000 Countrywide Credit
Industries, Inc. 4,608,625
77,500 Federal Home Loan
Mortgage Corp. 8,534,687
145,900 Federal National
Mortgage Assoc. 5,434,775
------------
21,809,887
------------
PAPER PRODUCTS -- 1.9%
80,000 Champion International Corp. 3,460,000
------------
</TABLE>
147
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OCC ACCUMULATION TRUST DECEMBER 31, 1996
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PRINTING/PUBLISHING -- .8%
45,600 Donnelly (R.R.) & Sons Co. $ 1,430,700
------------
RAILROADS -- 2.9%
86,300 Union Pacific Corp. 5,188,788
------------
REAL ESTATE -- .6%
811 Security Capital Group,
Inc.(A).................... 1,009,517
------------
TECHNOLOGY -- 5.9%
29,300 Intel Corp. 3,836,469
190,600 National Semiconductor Corp.* 4,645,875
75,000 Unitrode Corp.* 2,203,125
------------
10,685,469
------------
TELECOMMUNICATIONS -- 3.9%
456,000 Tele-Communications, Inc.
(Class A)* 5,956,500
30,000 Sprint Corp. 1,196,250
------------
7,152,750
------------
Total Common Stocks
(cost -- $115,007,880) $154,385,835
------------
Total Investments
(cost -- $141,697,788) 100.3% $181,309,368
Other Liabilities in Excess of
Other Assets (0.3) (581,274)
----- ------------
Total Net Assets 100.0% $180,728,094
===== ===========
</TABLE>
- ------------------------------------------------------
- -----------------------------------------------------
BOND PORTFOLIO
<TABLE>
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
U.S. TREASURY NOTES AND BONDS -- 35.6%
$ 175,000 5.75%, 10/31/97 $ 175,247
525,000 6.50%, 10/15/06 527,872
175,000 7.25%, 8/15/22 185,117
----------
Total U.S. Treasury Notes and Bonds
(cost -- $911,980) $ 888,236
----------
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
MORTGAGE-RELATED SECURITIES -- 34.5%
$ 80,682 Federal Home Loan Mortgage Corp.,
8.50%, 10/15/19 $ 81,942
Federal National Mortgage Assoc.,
177,953 6.50%, 5/1/26 169,723
196,302 7.00%, 1/1/10 197,283
154,262 8.00%, 8/1/24 157,492
8,207 9.00%, 8/1/02 8,553
20,111 9.50%, 12/1/06 21,135
73,983 9.50%, 12/1/19 80,248
141,214 Government National Mortgage
Assoc.,
8.50%, 3/15/25 146,684
----------
Total Mortgage-Related Securities
(cost -- $841,948) $ 863,060
----------
CORPORATE NOTES & BONDS -- 26.5%
AUTOMOTIVE -- 4.3%
$ 100,000 General Motors Acceptance Corp.,
8.25%, 2/24/04 $ 107,161
----------
CONGLOMERATES -- 4.3%
100,000 General Electric Capital Corp.,
8.375%, 3/1/01 106,652
----------
MISCELLANEOUS FINANCIAL SERVICES -- 17.9%
125,000 Associates Corp., N.A.,
5.25%, 3/30/00 120,684
100,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 102,535
100,000 Household Finance Corp.,
6.875%, 3/1/03 100,509
125,000 International Lease Finance
Corp.,
6.125%, 11/1/99 123,714
----------
447,442
----------
Total Corporate Notes & Bonds
(cost -- $648,295) $ 661,255
----------
Total Investments
(cost -- $2,402,223) 96.6% $2,412,551
Other Assets in Excess of
Other Liabilities 3.4 84,895
----- ----------
Total Net Assets 100.0% $2,497,446
===== =========
</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 AVERAGE FAIR VALUE AS OF
DESCRIPTION ACQUISITION AMOUNT SHARES COST DECEMBER 31, 1996
--------------------------------------------- ----------- -------- ------ ------- -----------------
<S> <C> <C> <C> <C> <C>
Security Capital Group, Inc. 12.00%, 6/30/14 9/16/94 $614,371 -- $ 91 $ 120
Security Capital Group, Inc. Common Stock 9/16/94 -- 811 949 1,245
</TABLE>
148
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OCC ACCUMULATION TRUST DECEMBER 31, 1996
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (continued)
- ------------------------------------------------------
- -----------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES -- 28.5%
Federal Home Loan Bank,
$105,000 5.21%, 2/13/97 $ 104,347
125,000 5.42%, 1/2/97 124,981
Federal Home Loan Mortgage Corp.,
30,000 5.21%, 1/27/97 29,887
615,000 5.40%, 1/2/97 614,908
120,000 5.42%, 1/3/97 119,964
195,000 5.52%, 1/8/97 194,791
Federal National Mortgage Assoc.,
10,000 5.36%, 2/18/97 9,928
305,000 5.42%, 1/17/97 304,265
----------
Total U.S. Government Agency Notes
(amortized cost -- $1,503,071) $1,503,071
----------
SHORT-TERM CORPORATE NOTES -- 71.6%
AUTOMOTIVE -- 7.2%
$130,000 Daimler-Benz North America Corp.,
5.30%, 3/14/97 $ 128,622
125,000 Ford Motor Credit Co.,
5.41%, 3/31/97 123,328
130,000 General Motors Acceptance Corp.,
5.30%, 6/23/97 126,689
----------
378,639
----------
BANKING -- 19.8%
150,000 Abbey National North America,
5.33%, 3/11/97 148,468
150,000 ABN-Amro North America
Finance Inc.,
5.40%, 3/6/97 148,560
100,000 Bayerische Vereinsbank AG,
5.33%, 1/8/97 99,896
100,000 Commerzbank U.S. Finance Inc.,
5.33%, 2/28/97 99,141
150,000 Morgan (J.P.) & Co., Inc.,
5.36%, 1/7/97 149,866
110,000 Societe Generale N.A. Inc.,
5.50%, 2/18/97 110,000
150,000 Svenska Handelsbanken Inc.,
5.53%, 1/16/97 149,654
140,000 Toronto-Dominion Holdings
USA Inc.,
5.30%, 2/5/97 139,279
----------
1,044,864
----------
CHEMICALS -- 2.8%
150,000 U.S. Borax & Chemical Corp.,
5.42%, 2/24/97 148,781
----------
CONGLOMERATES -- 2.1%
$110,000 General Electric Capital Corp.,
5.45%, 2/26/97 109,067
----------
<CAPTION>
----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------
<C> <S> <C>
ENTERTAINMENT -- 2.0%
105,000 Walt Disney Co.,
5.30%, 1/6/97 $ 104,923
----------
MACHINERY/ENGINEERING -- 5.1%
120,000 Deere (John) Capital Corp.,
5.30%, 4/14/97 118,180
150,000 Pitney Bowes Credit Corp.,
5.70%, 1/15/97 149,668
----------
267,848
----------
MISCELLANEOUS FINANCIAL SERVICES -- 22.4%
129,000 American Express Credit Corp.,
5.30%, 1/2/97 128,981
110,000 Beneficial Corp.,
5.31%, 7/14/97 106,852
140,000 Cheltenham & Gloucester Building
Society PLC,
5.26%, 3/24/97 138,323
100,000 Eksportfinans A/S,
5.39%, 2/18/97 99,281
150,000 Goldman Sachs Group L.P.,
5.43%, 1/13/97 149,729
150,000 Household Finance Corp.,
5.42%, 1/6/97 149,887
130,000 Merrill Lynch & Co., Inc.,
5.34%, 1/21/97 129,614
130,000 Morgan Stanley Group, Inc.,
5.43%, 1/15/97 129,726
150,000 USAA Capital Corp.,
5.32%, 2/24/97 148,803
----------
1,181,196
----------
SOVEREIGN -- 2.8%
150,000 Sweden (Kingdom of),
5.30%, 2/3/97 149,271
----------
TECHNOLOGY -- 5.2%
130,000 IBM Credit Corp.,
5.28%, 3/17/97 128,570
150,000 Motorola Credit Corp.,
5.23%, 2/20/97 148,910
----------
277,480
----------
TELECOMMUNICATIONS -- 2.2%
120,000 Ameritech Corp.,
5.30%, 3/31/97 118,428
----------
Total Short-Term Corporate Notes
(amortized cost -- $3,780,497) $3,780,497
----------
Total Investments
(amortized cost -- $5,283,568) 100.1% $5,283,568
Other Liabilities in Excess of
Other Assets (0.1) (4,526)
----- ----------
Total Net Assets 100.0% $5,279,042
===== =========
</TABLE>
See accompanying notes to financial statements.
149
<PAGE> 152
OCC ACCUMULATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY SMALL CAP MANAGED BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value (cost --
$16,492,938, $31,047,464
$141,697,788, $2,402,223 and
$5,283,568, respectively).... $20,235,081 $34,302,683 $181,309,368 $2,412,551 $5,283,568
Cash........................... 114,721 8,758 6,937 71,315 10,094
Receivable from investments
sold......................... -- -- 1,047,817 -- --
Receivable from fund shares
sold......................... 10,703 1,397 329,292 -- --
Dividends receivable........... 17,264 8,504 123,034 -- --
Interest receivable............ -- 6,304 110,591 32,400 2,235
Other assets................... 883 1,207 7,932 393 331
----------- ----------- ------------ ---------- ----------
Total Assets......... 20,378,652 34,328,853 182,934,971 2,516,659 5,296,228
----------- ----------- ------------ ---------- ----------
LIABILITIES
Payable for investments
purchased.................... 494,608 -- 1,897,083 -- --
Payable for fund shares
redeemed..................... 6,182 27,274 132,215 -- 446
Investment advisory fee
payable...................... 18,017 23,648 137,907 3,750 1,090
Other payables and accrued
expenses..................... 16,847 21,260 39,672 15,463 15,650
----------- ----------- ------------ ---------- ----------
Total Liabilities.... 535,654 72,182 2,206,877 19,213 17,186
----------- ----------- ------------ ---------- ----------
Total Net Assets..... $19,842,998 $34,256,671 $180,728,094 $2,497,446 $5,279,042
=========== =========== ============ ========== ==========
NET ASSETS
Par value ($.01 per share)..... $ 6,598 $ 15,153 $ 49,914 $ 2,629 $ 52,791
Paid-in-capital in excess of
par.......................... 15,232,928 29,167,853 132,265,145 2,473,650 5,226,264
Accumulated undistributed net
investment income............ 188,895 226,925 2,161,818 -- --
Accumulated undistributed net
realized gain (loss) on
investments.................. 672,434 1,591,521 6,639,637 10,839 (13)
Net unrealized appreciation on
investments.................. 3,742,143 3,255,219 39,611,580 10,328 --
----------- ----------- ------------ ---------- ----------
Total Net Assets..... $19,842,998 $34,256,671 $180,728,094 $2,497,446 $5,279,042
=========== =========== ============ ========== ==========
Fund shares outstanding........ 659,810 1,515,250 4,991,370 262,938 5,279,054
----------- ----------- ------------ ---------- ----------
Net asset value per share...... $ 30.07 $ 22.61 $ 36.21 $ 9.50 $ 1.00
=========== =========== ============ ========== ==========
</TABLE>
See accompanying notes to financial statements.
150
<PAGE> 153
OCC ACCUMULATION TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY SMALL CAP MANAGED BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends........................ $ 185,285 $ 227,354 $ 1,924,873 $ -- $ --
Interest......................... 137,420 199,837 1,333,194 323,750 222,268
---------- ---------- ----------- --------- --------
Total investment income....... 322,705 427,191 3,258,067 323,750 222,268
---------- ---------- ----------- --------- --------
OPERATING EXPENSES
Investment advisory fees (note
2A)........................... 109,507 165,735 972,381 24,157 16,388
Custodian fees (note 1G)......... 16,342 22,883 31,020 17,341 10,779
Auditing, consulting and tax
return preparation fees....... 10,185 10,309 13,434 10,226 10,309
Transfer and dividend disbursing
agent fees.................... 9,252 9,357 11,151 9,082 9,066
Legal fees....................... 2,206 3,048 9,476 1,918 1,923
Reports and notices to
shareholders.................. 3,011 3,914 21,135 1,335 951
Trustees' fees and expenses...... -- 5,702 25,790 -- --
Miscellaneous.................... 4,221 1,770 23,141 3,917 3,703
---------- ---------- ----------- --------- --------
Total operating expenses...... 154,724 222,718 1,107,528 67,976 53,119
Less: Investment advisory fees
waived (note 2A)............ (18,150) (17,823) (8,220) (18,557) (11,550)
Less: Expense offset
arrangement (note 1G)....... (2,764) (4,629) (3,060) (1,195) (717)
---------- ---------- ----------- --------- --------
Net operating expenses...... 133,810 200,266 1,096,248 48,224 40,852
---------- ---------- ----------- --------- --------
Net investment income....... 188,895 226,925 2,161,819 275,526 181,416
---------- ---------- ----------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS -- NET
Net realized gain (loss) on
investments................... 672,433 1,679,412 6,639,637 10,977 (14)
Net change in unrealized
appreciation (depreciation) on
investments................... 2,218,378 2,142,715 18,285,659 (184,990) --
---------- ---------- ----------- --------- --------
Net realized gain (loss) and
change
in unrealized
appreciation
(depreciation) on
investments.............. 2,890,811 3,822,127 24,925,296 (174,013) (14)
---------- ---------- ----------- --------- --------
Net increase in net assets
resulting from operations........ $3,079,706 $4,049,052 $27,087,115 $ 101,513 $181,402
========== ========== =========== ========= ========
</TABLE>
See accompanying notes to financial statements.
151
<PAGE> 154
OCC ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL CAP PORTFOLIO MANAGED PORTFOLIO
------------------------ ------------------------- --------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 1996 1995 1996 1995
----------- ---------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income.......................... $ 188,895 $ 111,781 $ 226,925 $ 211,870 $ 2,161,819 $ 1,378,069
Net realized gain (loss) on investments........ 672,433 233,302 1,679,412 456,809 6,639,637 1,023,914
Net change in unrealized appreciation
(depreciation) on investments................ 2,218,378 1,628,793 2,142,715 1,189,804 18,285,659 23,901,028
----------- ---------- ----------- ----------- ------------ -----------
Net increase in net assets resulting from
operations............................... 3,079,706 1,973,876 4,049,052 1,858,483 27,087,115 26,303,011
----------- ---------- ----------- ----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......................... (111,781) (20,888) (211,870) (29,623) (1,378,070) (360,801)
Net realized gains............................. (223,969) -- (544,700) (26,352) (878,874) --
----------- ---------- ----------- ----------- ------------ -----------
Total dividends and distributions to
shareholders............................. (335,750) (20,888) (756,570) (55,975) (2,256,944) (360,801)
----------- ---------- ----------- ----------- ------------ -----------
FUND SHARE TRANSACTIONS
Net proceeds from sales........................ 9,184,397 3,630,236 17,604,938 7,801,061 79,297,599 27,913,098
Reinvestment of dividends and distributions.... 335,750 20,888 756,533 55,975 2,256,944 360,801
Cost of shares redeemed........................ (1,457,087) (849,386) (3,401,674) (2,865,595) (24,844,767) (9,971,333)
----------- ---------- ----------- ----------- ------------ -----------
Net increase (decrease) in net assets from
fund share transactions.................. 8,063,060 2,801,738 14,959,797 4,991,441 56,709,776 18,302,566
----------- ---------- ----------- ----------- ------------ -----------
Total increase (decrease) in net
assets............................... 10,807,016 4,754,726 18,252,279 6,793,949 81,539,947 44,244,776
NET ASSETS
Beginning of year.............................. 9,035,982 4,281,256 16,004,392 9,210,443 99,188,147 54,943,371
----------- ---------- ----------- ----------- ------------ -----------
End of year (including undistributed net
investment income of $188,895 and $111,781;
$226,925 and $211,870; $2,161,818 and
$1,378,069; $0 and $0
and $0 and $0, respectively)................. $19,842,998 $9,035,982 $34,256,671 $16,004,392 $180,728,094 $99,188,147
=========== ========== =========== =========== ============ ===========
SHARES ISSUED AND REDEEMED
Issued......................................... 339,540 161,702 837,586 427,444 2,403,077 1,016,970
Issued in reinvestment of dividends and
distributions................................ 13,029 1,074 38,520 3,289 73,016 15,866
Redeemed....................................... (53,448) (38,368) (164,530) (156,903) (775,472) (379,452)
----------- ---------- ----------- ----------- ------------ -----------
Net increase (decrease).................... 299,121 124,408 711,576 273,830 1,700,621 653,384
=========== ========== =========== =========== ============ ===========
<CAPTION>
BOND PORTFOLIO MONEY MARKET PORTFOLIO
------------------------- -------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <<C> <C> <C> <C>
OPERATIONS
Net investment income.......................... $ 275,526 $ 244,328 $ 181,416 $ 203,353
Net realized gain (loss) on investments........ 10,977 79,769 (14) 47
Net change in unrealized appreciation
(depreciation) on investments................ (184,990) 269,489 -- --
----------- ----------- ----------- -----------
Net increase in net assets resulting from
operations............................... 101,513 593,586 181,402 203,400
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.......................... (275,526) (244,328) (181,416) (203,353)
Net realized gains............................. (75,648) -- (46) --
----------- ----------- ----------- -----------
Total dividends and distributions to
shareholders............................. (351,174) (244,328) (181,462) (203,353)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
Net proceeds from sales........................ 1,066,456 1,574,585 6,146,104 4,346,773
Reinvestment of dividends and distributions.... 350,959 242,735 182,704 201,653
Cost of shares redeemed........................ (2,954,763) (1,537,477) (5,405,790) (3,711,915)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from
fund share transactions.................. (1,537,348) 279,843 923,018 836,511
----------- ----------- ----------- -----------
Total increase (decrease) in net
assets............................... (1,787,009) 629,101 922,958 836,558
NET ASSETS
Beginning of year.............................. 4,284,455 3,655,354 4,356,084 3,519,526
----------- ----------- ----------- -----------
End of year (including undistributed net
investment income of $188,895 and $111,781;
$226,925 and $211,870; $2,161,818 and
$1,378,069; $0 and $0
and $0 and $0, respectively)................. $ 2,497,446 $ 4,284,455 $ 5,279,042 $ 4,356,084
=========== =========== =========== ===========
SHARES ISSUED AND REDEEMED
Issued......................................... 107,627 165,081 6,146,104 4,346,773
Issued in reinvestment of dividends and
distributions................................ 36,654 25,011 182,704 201,653
Redeemed....................................... (310,084) (158,718) (5,405,790) (3,711,915)
----------- ----------- ----------- -----------
Net increase (decrease).................... (165,803) 31,374 923,018 836,511
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
152
<PAGE> 155
OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
OCC Accumulation Trust (the "Trust") (formerly Quest for Value Accumulation
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 Equity Portfolio, the
Small Cap Portfolio, the Managed Portfolio, the Bond Portfolio and the Money
Market Portfolio (collectively, the "Portfolios") are five of seven portfolios
offered in the Trust. The Trust filed an application with the Securities and
Exchange Commission for an Order approving the substitution of shares of the
U.S. Government series for shares of the Bond series. Notice of the Application
was published January 29, 1997. If the order is issued, the substitution will be
effected shortly thereafter. Each portfolio is authorized to issue an unlimited
number of shares of beneficial interest at $.01 par value. OpCap Advisors (the
"Adviser"), a majority-owned (99%) subsidiary of Oppenheimer Capital, serves as
the Trust's investment adviser. The Trust is an investment vehicle for variable
annuity and variable life insurance contracts of various life insurance
companies, and qualified pensions and retirement plans. 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 Money Market Portfolio: Portfolio securities are valued at amortized
cost, which approximates market value. The amortized cost method involves
valuing a security at cost on the date of purchase and thereafter assuming a
constant dollar amortization to maturity of the difference between the principal
amount due at maturity and the initial cost of the security. The Equity, Small
Cap, Managed and 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 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) 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 sixty days or less are valued at
amortized cost or amortized value, 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 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.
(C) INVESTMENT TRANSACTIONS AND OTHER INCOME
Investment transactions are accounted for on the trade date. In determining
the gain or loss from the sale of investments, the cost of investments 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.
153
<PAGE> 156
OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS
The Equity, Small Cap and Managed 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 Bond and Money Market
Portfolios: 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 Trust's portfolios 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 based 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 dividends and distributions exceed current and accumulated earnings and
profits for Federal income tax purposes, they are reported as distributions of
paid-in-capital or tax return of capital. At December 31, 1996, the Trust's
portfolios 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 applicable portfolios of the
Trust or on another reasonable basis.
(F) USE OF ESTIMATES
The preparation of the 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) CUSTODY OFFSETS
The Portfolio benefits from an expense offset arrangement with its
custodian bank where uninvested cash balances earn credits that reduce monthly
fees. Had these cash balances been invested in income producing securities, they
would have generated income for the Portfolios.
(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 each Portfolio's net assets as of
the close of business each day at the following annual rates: .80% for each of
the Equity, Small Cap and Managed Portfolios on the first $400 million, .75% on
the next $400 million and .70% thereafter; .50% for the Bond Portfolio; and .40%
for the Money Market Portfolio.
The Adviser has voluntarily agreed to waive that portion of each advisory
fee necessary to limit total operating expenses of each Portfolio to 1.00% (net
of expense offsets) of average daily net assets on an annual basis.
154
<PAGE> 157
OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
(B) Total brokerage commissions paid by the Equity, Small Cap and Managed
Portfolios amounted to $14,116, $52,990 and $107,123, respectively, of which
Oppenheimer & Co., Inc., an affiliate of the Adviser, received $5,743, $23,565
and $61,183, respectively, for the year ended December 31, 1996.
(3) PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1996, purchases and sales of investment
securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
EQUITY SMALL CAP MANAGED BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO*
----------- ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Purchases....................... $11,763,936 $20,565,700 $84,349,690 $6,205,620 $46,988,455
Sales........................... 4,337,943 9,055,696 30,263,820 7,630,072 46,273,740
</TABLE>
- ---------------
*All short-term securities and maturities.
(4) UNREALIZED APPRECIATION (DEPRECIATION) AND COST OF INVESTMENTS FOR FEDERAL
INCOME TAX PURPOSES
At December 31, 1996, the composition of unrealized appreciation
(depreciation) of investment securities and the cost of investments for Federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
APPRECIATION (DEPRECIATION) NET TAX COST
---------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
Equity Portfolio............................ $3,901,280 $ (159,137) $ 3,742,143 $16,492,938
Small Cap Portfolio......................... 3,909,842 (663,423) 3,246,419 31,056,264
Managed Portfolio........................... 40,341,986 (730,406) 39,611,580 141,697,788
Bond Portfolio.............................. 35,184 (24,856) 10,328 2,402,223
</TABLE>
(5) CAPITAL LOSS CARRY-FORWARDS
For the fiscal year ended December 31, 1996, the Small Cap Portfolio will
utilize $87,890 of net capital loss carry-forward. Additionally, for the fiscal
year ended December 31, 1996, the Money Market Portfolio incurred net realized
capital losses of $14 which are available as a reduction against future net
capital gains realized before the end of fiscal year 2004 to the extent provided
by regulations. To the extent that this capital loss carry-forward is used to
offset future net capital gains, it is possible that gains so offset will not be
distributed to shareholders.
(6) SUBSEQUENT EVENT
Oppenheimer Financial Corp., a holding company, holds a one-third interest
in Oppenheimer Capital and Oppenheimer Capital, L.P., a Delaware limited
partnership whose units are traded on the New York Stock Exchange and of which
Oppenheimer Financial Corp. is the sole general partner, owns the remaining two-
thirds interest. On February 13, 1997, PIMCO Advisors L.P., a registered
investment adviser, signed a definitive agreement with Oppenheimer Group, Inc.
and its subsidiary Oppenheimer Financial Corp. for PIMCO Advisors L.P. and its
affiliate, Thomson Advisory Group, Inc., to acquire the one-third managing
general partner interest in Oppenheimer Capital and the 1.0% general partner
interest in Oppenheimer Capital L.P. The completion of the transaction is
subject to certain client, lender, IRS and other approvals.
155
<PAGE> 158
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
DIVIDENDS AND
INCOME FROM DISTRIBUTIONS
INVESTMENT OPERATIONS ----------------------------
------------------------------------ DISTRIBUTIONS
NET REALIZED TO
AND DIVIDENDS TO SHAREHOLDERS
NET ASSET UNREALIZED TOTAL SHAREHOLDERS FROM NET NET ASSET
VALUE, NET GAIN(LOSS) FROM FROM NET REALIZED GAINS VALUE,
BEGINNING INVESTMENT ON INVESTMENT INVESTMENT ON END OF
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD
--------- ---------- ------------ ---------- ------------ -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY PORTFOLIO
Year Ended December 31, 1996....... $ 25.05 $ 0.21 $ 5.52 $ 5.73 ($0.24) ($0.47) $ 30.07
Year Ended December 31, 1995....... 18.12 0.31 6.71 7.02 (0.09) -- 25.05
September 16, 1994(3) to
December 31, 1994................. 18.57 0.09 (0.54) (0.45) -- -- 18.12
<CAPTION>
NET
ASSETS,
TOTAL END OF
RETURN* PERIOD
------- ------------
<S> <C> <C> <C> <C>
EQUITY PORTFOLIO
Year Ended December 31, 1996....... 23.4% $19,842,998
Year Ended December 31, 1995....... 38.9% 9,035,982
September 16, 1994(3) to
December 31, 1994................. (2.4%) 4,281,256
<CAPTION>
RATIOS
-----------------------------------------------
RATIO OF RATIO OF
NET NET
OPERATING INVESTMENT
EXPENSES INCOME
TO TO
AVERAGE AVERAGE PORTFOLIO AVERAGE
NET NET TURNOVER COMMISSION
ASSETS ASSETS RATE RATE
--------- --------- --------- ---------
EQUITY PORTFOLIO
Year Ended December 31, 1996....... 0.93% (1,2,5) 1.29% (1,2) 36% $ 0.0588
Year Ended December 31, 1995....... 0.72% (1) 1.74% (1) 31% --
September 16, 1994(3) to
December 31, 1994................. 0.72% (1,4) 1.80% (1,4) 6% --
</TABLE>
(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the year ended December 31, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. If such waivers,
assumptions and expense offsets had not been in effect, the ratios of net
operating expenses to average daily net assets and the ratios of net
investment income to average daily net assets would have been 1.05% and
1.15%, respectively, for the year ended December 31, 1996, 1.26% and 1.20%,
respectively, for the year ended December 31, 1995 and 2.09% and 0.43%,
annualized, respectively, for the period September 16, 1994 (commencement of
operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
SMALL CAP PORTFOLIO
Year Ended December 31, 1996....... $ 19.91 $ 0.14 $ 3.45 $ 3.59 ($0.25) ($0.64) $ 22.61
Year Ended December 31, 1995....... 17.38 0.26 2.37 2.63 (0.05) (0.05) 19.91
September 16, 1994(3) to
December 31, 1994................. 17.49 0.06 (0.17) (0.11) -- -- 17.38
<CAPTION>
SMALL CAP PORTFOLIO
<S> <C> <C> <C> <C>
Year Ended December 31, 1996....... 18.7% $34,256,671
Year Ended December 31, 1995....... 15.2% 16,004,392
September 16, 1994(3) to
December 31, 1994................. (0.6%) 9,210,443
<CAPTION>
SMALL CAP PORTFOLIO
Year Ended December 31, 1996....... 0.93% (1,2,5) 1.03% (1,2) 50% $ 0.0493
Year Ended December 31, 1995....... 0.74% (1) 1.75% (1) 69% --
September 16, 1994(3) to
December 31, 1994................. 0.74% (1,4) 1.22% (1,4) 32% --
</TABLE>
(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the year ended December 31, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. If such waivers,
assumptions and expense offsets had not been in effect, the ratios of net
operating expenses to average daily net assets and the ratios of net
investment income to average daily net assets would have been 1.01% and
0.92%, respectively, for the year ended December 31, 1996, 0.99% and 1.50%,
respectively, for the year ended December 31, 1995 and 1.64% and 0.32%,
annualized, respectively, for the period September 16, 1994 (commencement of
operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
MANAGED PORTFOLIO
Year Ended December 31, 1996....... $ 30.14 $ 0.43 $ 6.31 $ 6.74 ($0.41) ($0.26) $ 36.21
Year Ended December 31, 1995....... 20.83 0.42 9.02 9.44 (0.13) -- 30.14
September 16, 1994(3) to
December 31, 1994................. 21.80 0.14 (1.11) (0.97) -- -- 20.83
<CAPTION>
MANAGED PORTFOLIO
<S> <C> <C> <C> <C>
Year Ended December 31, 1996....... 22.8% $180,728,094
Year Ended December 31, 1995....... 45.6% 99,188,147
September 16, 1994(3) to
December 31, 1994................. (4.4%) 54,943,371
<CAPTION>
MANAGED PORTFOLIO
Year Ended December 31, 1996....... 0.84% (1,2,5) 1.66% (1,2) 27% $ 0.0592
Year Ended December 31, 1995....... 0.66% (1) 1.85% (1) 22% --
September 16, 1994(3) to
December 31, 1994................. 0.66% (1,4) 2.34% (1,4) 8% --
</TABLE>
(1) During the periods presented above, the Adviser waived a portion of its
fees. Additionally, for the year ended December 31, 1996, the Portfolio
benefited from an expense offset arrangement with its custodian bank. If
such waivers and expense offsets had not been in effect, the ratios of net
operating expenses to average daily net assets and the ratios of net
investment income to average daily net assets would have been 0.85% and
1.65%, respectively, for the year ended December 31, 1996, 0.74% and 1.77%,
respectively, for the year ended December 31, 1995 and 0.96% and 2.04%,
annualized, respectively, for the period September 16, 1994 (commencement of
operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
BOND PORTFOLIO
Year Ended December 31, 1996....... $ 9.99 $ 0.54 ($0.34) $ 0.20 ($0.54) ($0.15) $ 9.50
Year Ended December 31, 1995....... 9.20 0.58 0.79 1.37 (0.58) -- 9.99
September 16, 1994(3) to
December 31, 1994................. 9.40 0.17 (0.20) (0.03) (0.17) -- 9.20
<CAPTION>
BOND PORTFOLIO
<S> <C> <C> <C> <C>
Year Ended December 31, 1996....... 2.2% $2,947,446
Year Ended December 31, 1995....... 15.2% 4,284,455
September 16, 1994(3) to
December 31, 1994................. (0.3%) 3,655,354
<CAPTION>
BOND PORTFOLIO
Year Ended December 31, 1996....... 1.02% (1,2,5) 5.70% (1,2) 138% --
Year Ended December 31, 1995....... 1.00% (1) 5.95% (1) 134% --
September 16, 1994(3) to
December 31, 1994................. 1.00% (1,4) 6.26% (1,4) 7% --
</TABLE>
(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the year ended December 31, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. If such waivers,
assumptions and expense offsets had not been in effect, the ratios of net
operating expenses to average daily net assets and the ratios of net
investment income to average daily net assets would have been 1.41% and
5.29%, respectively, for the year ended December 31, 1996, 1.52% and 5.43%,
respectively, for the year ended December 31, 1995 and 2.05% and 5.21%,
annualized, respectively, for the period September 16, 1994 (commencement of
operations) to December 31, 1994.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET PORTFOLIO
Year Ended December 31, 1996....... $ 1.00 $ 0.04 ($0.00) $ 0.04 ($0.04) ($0.00) $ 1.00
Year Ended December 31, 1995....... 1.00 0.05 0.00 0.05 (0.05) -- 1.00
September 16, 1994(3) to
December 31, 1994................. 1.00 0.01 -- 0.01 (0.01) -- 1.00
<CAPTION>
MONEY MARKET PORTFOLIO
<S> <C> <C> <C> <C>
Year Ended December 31, 1996....... 4.5% $5,279,042
Year Ended December 31, 1995....... 5.1% 4,356,084
September 16, 1994(3) to
December 31, 1994................. 1.2% 3,519,526
<CAPTION>
MONEY MARKET PORTFOLIO
Year Ended December 31, 1996....... 1.01% (1,2,5) 4.43% (1,2) -- --
Year Ended December 31, 1995....... 1.00% (1) 4.94% (1) -- --
September 16, 1994(3) to
December 31, 1994................. 1.00% (1,4) 4.13% (1,4) -- --
</TABLE>
(1) During the periods presented above, the Adviser waived a portion or all of
its fees and assumed a portion of the Portfolio's operating expenses.
Additionally, for the year ended December 31, 1996, the Portfolio benefited
from an expense offset arrangement with its custodian bank. If such waivers,
assumptions and expense offsets had not been in effect, the ratios of net
operating expenses to average daily net assets and the ratios of net
investment income to average daily net assets would have been 1.30% and
4.13%, respectively, for the year ended December 31, 1996, 1.14% and 4.80%,
respectively, for the year ended December 31, 1995 and 2.03% and 3.10%,
annualized, respectively, for the period September 16, 1994 (commencement of
operations) to December 31, 1994.
- ---------------
(2) Average daily net assets for the year ended December 31, 1996 were
$14,669,645, $22,131,648, $130,347,107, $4,831,393 and $4,097,126 for the
Equity, Small Cap, Managed, Bond and Money Market Portfolios, respectively.
(3) Commencement of operations.
(4) Annualized.
(5) Gross of expense offsets.(See note 1G in Notes to Financial Statements)
* Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.
156
<PAGE> 159
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders
and Trustees of
OCC Accumulation Trust
In our opinion, the accompanying statements of assets and liabilities,
including the schedules 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, the Small Cap
Portfolio, the Managed Portfolio, the Bond Portfolio, and the Money Market
Portfolio (five of the seven portfolios constituting OCC Accumulation Trust,
hereafter referred to as the "Trust") at December 31, 1996, the results of each
of their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for the periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Trust'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 of 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, 1996 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
February 17, 1997
157
<PAGE> 160
OCC ACCUMULATION TRUST
ONE WORLD FINANCIAL CENTER
NEW YORK, NY 10281
<TABLE>
<S> <C>
TRUSTEES AND PRINCIPAL OFFICERS
Joseph M. La Motta Trustee, President
Paul Y. Clinton Trustee
Thomas W. Courtney Trustee
Lacy B. Herrmann Trustee
George Loft Trustee
Bernard H. Garil Vice President
Robert J. Bluestone Vice President
Pierre Daviron Vice President
John C. Giusio, Jr. Vice President
Richard J. Glasebrook, II Vice President
Louis Goldstein Vice President
Benjamin D. Gutstein Vice President
Vikki Hanges Vice President
Timothy McCormick Vice President
Eileen P. Rominger Vice President
Sheldon M. Siegel Treasurer
Deborah Kaback Secretary
Richard L. Peteka Assistant Treasurer
INVESTMENT ADVISER
OpCap Advisors
One World Financial Center
New York, NY 10281
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02105
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036
This report is authorized for distribution only
to shareholders and to others who have
received a copy of this Trust's prospectus.
</TABLE>
<PAGE> 161
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<PAGE> 162
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<PAGE> 163
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 OF MONYMASTER AND MONYEQUITY MASTER:
MONY SECURITIES CORP.
1740 Broadway, New York, NY 10019
(Member NASD, SIPC)
<PAGE> 164
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 (2/97)
