<PAGE> 1
MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
1997 SEMI-ANNUAL REPORT
PRODUCTS:
MONYMASTER
MONYEQUITY MASTER
VALUEMASTER
MONYVESTOR
STRATEGIST
- --------------------------------------------------------------------------------
[MUTUAL OF NEW YORK 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 stock market moved up sharply during the second quarter, setting new
highs in the popular averages. Market breadth also improved as more individual
stocks participated in the upswing. The economic news was very favorable,
creating a return to the "Goldilocks" economy -- not too fast and not too slow.
Inflation news was positive, both the producer and the consumer indices showing
a flat price trend. Interest rates drifted lower, mutual fund inflows continued
and stock prices exploded to the upside.
Everything has gone right on the economic, inflation and interest rate
front. There was even the beginning of a deal on resolving the Federal budget
deficit. All this has not gone unnoticed, and valuations are in historic high
territory. The good news may well justify such valuations and it is possible
that the economy and the markets have entered a new era. However, as the market
has moved higher the tolerance for any slips has decreased. Investors have
substantial profits to protect, 1997 has been better than almost anyone
expected. They will be inclined to move quickly to protect their gains.
At such levels the market will suffer from any deviation from the current
"just right" growth. While a weaker economy would hurt the earnings side, a
stronger than expected economy is also a risk. The market has more to lose from
the negative effects of inflation and interest rates, than from weaker profits.
Stronger growth accompanied by any indication of a prospective inflation
increase would quickly cause the bond market to sell off, pushing long term
rates higher. The Federal Reserve would move to tighten credit and push up short
rates. This would begin to slow the economy, but would increase concern about
overshooting the fine tuning and causing recession. Any benefit the market would
get from better earnings would be tempered by the certainty that those gains
would not last in a more hostile monetary environment.
Most importantly the negative effect of higher rates on valuation models
would overcome any positive earnings impact. Competition from fixed income
alternatives would begin to draw money from stocks.
Current investor desires and expectations are for growth of around 2.5 per
cent, anything significantly higher raises fears of future inflation. It's
possible that this "just right" will continue for awhile, but at some point it's
likely to deviate from this perfect path. The stock market has moved a long way
in a short time and some consolidation would not be surprising. A major decline
is not expected as long as growth remains moderate and inflation is subdued.
Under these conditions interest rates should remain stable or decline improving
the relative attractiveness of bonds.
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 June 30, 1997.................... 5
Statements of Operations as of June 30, 1997................................ 7
Statements of Changes in Net Assets......................................... 9
Notes to Financial Statements............................................... 12
MONY
Statements of Assets and Liabilities as of June 30, 1997.................... 15
Statements of Operations as of June 30, 1997................................ 17
Statements of Changes in Net Assets......................................... 19
Notes to Financial Statements............................................... 22
VARIABLE ACCOUNT S
MONY America
Statements of Assets and Liabilities as of June 30, 1997.................... 25
Statements of Operations as of June 30, 1997................................ 26
Statements of Changes in Net Assets......................................... 27
Notes to Financial Statements............................................... 28
MONY
Statements of Assets and Liabilities as of June 30, 1997.................... 30
Statements of Operations as of June 30, 1997................................ 31
Statements of Changes in Net Assets......................................... 32
Notes to Financial Statements............................................... 33
VARIABLE ACCOUNT A
MONY America
Statements of Assets and Liabilities as of June 30, 1997.................... 35
Statements of Operations as of June 30, 1997................................ 38
Statements of Changes in Net Assets......................................... 41
Notes to Financial Statements............................................... 45
MONY
Statements of Assets and Liabilities as of June 30, 1997.................... 48
Statements of Operations as of June 30, 1997................................ 51
Statements of Changes in Net Assets......................................... 54
Notes to Financial Statements............................................... 58
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
MONY SERIES FUND, INC.
Equity Growth Portfolio (MONYMaster I, MONYVestor and Strategist)................ 61
Equity Income Portfolio (MONYMaster I, MONYVestor and Strategist)................ 61
Intermediate Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor
and Strategist)................................................................. 62
Long Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)..................................................................... 63
Diversified Portfolio (MONYMaster I, MONYVestor and Strategist).................. 64
Government Securities Bond Portfolio (MONYEquity Master, MONYMaster II).......... 64
Money Market Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)..................................................................... 65
Equity Growth Portfolio of Investments (MONYMaster I, MONYVestor and
Strategist)..................................................................... 66
Equity Income Portfolio of Investments (MONYMaster I, MONYVestor and
Strategist)..................................................................... 68
Intermediate Term Bond Portfolio of Investments (MONYEquity Master, MONYMaster
I&II, MONYVestor and Strategist)................................................ 70
Long Term Bond Portfolio of Investments (MONYEquity Master, MONYMaster I&II,
MONYVestor and Strategist)...................................................... 71
Diversified Portfolio of Investments (MONYMaster I, MONYVestor and Strategist)... 72
Government Securities Bond Portfolio of Investments (MONYEquity Master,
MONYMaster II).................................................................. 74
Money Market Portfolio of Investments (MONYEquity Master, MONYMaster I&II,
MONYVestor and Strategist)...................................................... 75
Statements of Assets and Liabilities as of June 30, 1997......................... 76
Statements of Operations as of June 30, 1997..................................... 77
Statements of Changes in Net Assets.............................................. 78
NOTES TO FINANCIAL STATEMENTS.................................................... 80
FINANCIAL HIGHLIGHTS............................................................. 83
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio (MONYEquity Master, MONYMaster II).............................. 91
Small Cap Portfolio (MONYEquity Master, MONYMaster II)........................... 93
Managed Portfolio (MONYEquity Master, MONYMaster II)............................. 96
International Growth Portfolio (MONYEquity Master, MONYMaster II)................ 99
High Yield Bond Portfolio (MONYEquity Master, MONYMaster II)..................... 104
Statements of Assets and Liabilities as of June 30, 1997......................... 108
Statements of Operations as of June 30, 1997..................................... 109
Statements of Changes in Net Assets.............................................. 110
FINANCIAL HIGHLIGHTS............................................................. 112
NOTES TO FINANCIAL STATEMENTS.................................................... 117
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
OCC ACCUMULATION TRUST
Equity Portfolio (ValueMaster)................................................... 122
Small Cap Portfolio (ValueMaster)................................................ 124
Managed Portfolio (ValueMaster).................................................. 126
Money Market Portfolio (ValueMaster)............................................. 128
U.S. Government Income Portfolio (ValueMaster)................................... 129
Equity Portfolio Schedule of Investments (ValueMaster)........................... 130
Small Cap Portfolio Schedule of Investments (ValueMaster)........................ 131
Managed Portfolio Schedule of Investments (ValueMaster).......................... 132
Money Market Portfolio Schedule of Investments (ValueMaster)..................... 134
U.S. Government Income Portfolio Schedule of Investments (ValueMaster)........... 135
Statements of Assets and Liabilities as of June 30, 1997......................... 136
Statements of Operations as of June 30, 1997..................................... 137
Statements of Changes in Net Assets.............................................. 138
NOTES TO FINANCIAL STATEMENTS.................................................... 139
FINANCIAL HIGHLIGHTS............................................................. 142
</TABLE>
4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<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)....... $ 546,162 $ 539,561 $ 167,990 $ 83,086 $ 825,980 $ 84,486
========= ========= ========= ========= ========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... $ 749,842 $ 752,663 $ 169,487 $ 85,692 $1,078,200 $ 82,332
Amount due from MONY America....... 226 60 0 0 477 49
Amount due from MONY Series Fund,
Inc. ............................ 321 512 369 1 648 259
--------- --------- --------- --------- ---------- ---------
Total assets............. 750,389 753,235 169,856 85,693 1,079,325 82,640
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY America......... 321 512 369 1 648 259
Amount due to MONY Series Fund,
Inc. ............................ 226 60 0 0 477 49
--------- --------- --------- --------- ---------- ---------
Total liabilities........ 547 572 369 1 1,125 308
--------- --------- --------- --------- ---------- ---------
Net assets......................... $ 749,842 $ 752,663 $ 169,487 $ 85,692 $1,078,200 $ 82,332
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net payments.... $ 539,575 $ 533,107 $ 207,531 $ 123,015 $ 954,720 $ 200,901
Cost of insurance withdrawals
(Note 3)...................... (367,358) (468,687) (196,927) (148,754) (885,847) (193,956)
Undistributed net investment
income........................ 170,467 329,976 164,320 100,334 536,944 75,387
Accumulated net realized gain
(loss) on investments......... 203,478 145,165 (6,934) 8,491 220,163 0
Unrealized appreciation of
investments................... 203,680 213,102 1,497 2,606 252,220 0
--------- --------- --------- --------- ---------- ---------
Net assets......................... $ 749,842 $ 752,663 $ 169,487 $ 85,692 $1,078,200 $ 82,332
========= ========= ========= ========= ========== =========
Number of units outstanding*....... 14,833 14,188 7,519 3,091 29,626 4,692
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding*..................... $ 50.55 $ 53.05 $ 22.54 $ 27.72 $ 36.39 $ 17.55
========= ========= ========= ========= ========== =========
</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)
JUNE 30, 1997 (UNAUDITED)
<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).................... $132,241 $ 747,786 $397,206 $2,544,883 $ 8,858,621 $3,543,648
======== ========= ======== ========== =========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $ 0 $ 0 $ 0 $ 0 $10,089,263 $4,256,596
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 130,957 750,244 399,377 2,544,883 0 0
Amount due from Enterprise Accumulation Trust... 0 0 0 0 9,584 4,365
Amount due from MONY America.................... 240 690 851 51,851 12,859 8,163
Amount due from MONY Series Fund, Inc........... 57 428 63 1,442 0 0
-------- --------- -------- ---------- ----------- ----------
Total assets............................ 131,254 751,362 400,291 2,598,176 10,111,706 4,269,124
-------- --------- -------- ---------- ----------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 0 0 0 0 12,859 8,163
Amount due to MONY America...................... 57 428 63 1,442 9,584 4,365
Amount due to MONY Series Fund, Inc. ........... 240 690 851 51,851 0 0
-------- --------- -------- ---------- ----------- ----------
Total liabilities....................... 297 1,118 914 53,293 22,443 12,528
-------- --------- -------- ---------- ----------- ----------
Net assets...................................... $130,957 $ 750,244 $399,377 $2,544,883 $10,089,263 $4,256,596
======== ========= ======== ========== =========== ==========
Net assets consist of:
Contractholders' net payments................. $155,250 $ 820,889 $438,095 $2,750,288 $10,137,973 $4,172,150
Cost of insurance withdrawals (Note 3)........ (29,795) (119,867) (59,580) (369,732) (1,761,008) (779,550)
Undistributed net investment income........... 6,702 50,524 16,187 164,327 43,716 33,666
Accumulated net realized gain (loss) on
investments................................. 84 (3,760) 2,504 0 437,940 117,382
Unrealized appreciation (depreciation) of
investments................................. (1,284) 2,458 2,171 0 1,230,642 712,948
-------- --------- -------- ---------- ----------- ----------
Net assets...................................... $130,957 $ 750,244 $399,377 $2,544,883 $10,089,263 $4,256,596
======== ========= ======== ========== =========== ==========
Number of units outstanding*.................... 11,475 60,983 35,257 229,374 550,702 273,031
-------- --------- -------- ---------- ----------- ----------
Net asset value per unit outstanding*........... $ 11.41 $ 12.30 $ 11.33 $ 11.09 $ 18.32 $ 15.59
======== ========= ======== ========== =========== ==========
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................... $36,514,831 $ 2,573,465 $1,280,132
=========== ========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $42,057,304 $ 2,924,947 $1,312,735
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 0 0 0
Amount due from Enterprise Accumulation Trust... 36,434 2,590 704
Amount due from MONY America.................... 96,827 7,355 610
Amount due from MONY Series Fund, Inc........... 0 0 0
----------- ---------- ----------
Total assets............................ 42,190,565 2,934,892 1,314,049
----------- ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 96,827 7,355 610
Amount due to MONY America...................... 36,434 2,590 704
Amount due to MONY Series Fund, Inc. ........... 0 0 0
----------- ---------- ----------
Total liabilities....................... 133,261 9,945 1,314
----------- ---------- ----------
Net assets...................................... $42,057,304 $ 2,924,947 $1,312,735
=========== ========== ==========
Net assets consist of:
Contractholders' net payments................. $41,146,145 $ 2,853,905 $1,399,469
Cost of insurance withdrawals (Note 3)........ (6,857,443) (367,193) (221,443)
Undistributed net investment income........... 195,895 8,576 90,740
Accumulated net realized gain (loss) on
investments................................. 2,030,234 78,177 11,366
Unrealized appreciation (depreciation) of
investments................................. 5,542,473 351,482 32,603
----------- ---------- ----------
Net assets...................................... $42,057,304 $ 2,924,947 $1,312,735
=========== ========== ==========
Number of units outstanding*.................... 2,253,949 193,458 99,996
----------- ---------- ----------
Net asset value per unit outstanding*........... $ 18.66 $ 15.12 $ 13.13
=========== ========== ==========
</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 PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<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..................... $ 57,504 $ 80,960 $ 10,378 $ 5,654 $ 84,416 $ 2,153
Mortality and expense risk charges
(Note 3).......................... 2,018 2,115 518 268 3,233 253
-------- -------- ------- ------- -------- -------
Net investment income............... 55,486 78,845 9,860 5,386 81,183 1,900
-------- -------- ------- ------- -------- -------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales............... 37,852 71,403 25,637 13,240 213,901 15,091
Cost of shares sold............... 25,068 42,721 24,904 11,778 149,837 15,091
-------- -------- ------- ------- -------- -------
Net realized gain on investments.... 12,784 28,682 733 1,462 64,064 0
Net increase (decrease) in
unrealized appreciation of
investments....................... 53,729 27,188 (6,588) (5,245) 7,424 0
-------- -------- ------- ------- -------- -------
Net realized and unrealized gain
(loss) on investments............. 66,513 55,870 (5,855) (3,783) 71,488 0
-------- -------- ------- ------- -------- -------
Net increase in net assets resulting
from operations................... $121,999 $134,715 $ 4,005 $ 1,603 $152,671 $ 1,900
======== ======== ======= ======= ======== =======
</TABLE>
See notes to financial statements.
7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<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>
Dividend income..................... $ 6,095 $ 42,293 $ 14,009 $ 67,446 $ 0 $ 0
Mortality and expense risk charges
(Note 3).......................... 403 2,534 1,286 9,909 27,646 11,720
------- -------- ------- ----------- ---------- --------
Net investment income (loss)........ 5,692 39,759 12,723 57,537 (27,646) (11,720)
------- -------- ------- ----------- ---------- --------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales............... 21,490 107,923 50,582 11,789,278 1,404,005 552,205
Cost of shares sold............... 21,065 113,644 49,117 11,789,278 1,164,313 475,157
------- -------- ------- ----------- ---------- --------
Net realized gain (loss) on
investments....................... 425 (5,721) 1,465 0 239,692 77,048
Net increase (decrease) in
unrealized appreciation of
investments....................... (3,517) (19,428) (4,926) 0 849,548 638,619
------- -------- ------- ----------- ---------- --------
Net realized and unrealized gain
(loss) on investments............. (3,092) (25,149) (3,461) 0 1,089,240 715,667
------- -------- ------- ----------- ---------- --------
Net increase in net assets resulting
from operations................... $ 2,600 $ 14,610 $ 9,262 $ 57,537 $1,061,594 $703,947
======= ======== ======= =========== ========== ========
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------
<S> <C> <C> <C>
Dividend income..................... $ 0 $ 0 $ 44,881
Mortality and expense risk charges
(Note 3).......................... 122,937 8,304 3,888
---------- -------- -------
Net investment income (loss)........ (122,937) (8,304) 40,993
---------- -------- -------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales............... 5,535,945 387,415 286,836
Cost of shares sold............... 4,412,649 338,776 275,840
---------- -------- -------
Net realized gain (loss) on
investments....................... 1,123,296 48,639 10,996
Net increase (decrease) in
unrealized appreciation of
investments....................... 3,283,920 254,900 6,379
---------- -------- -------
Net realized and unrealized gain
(loss) on investments............. 4,407,216 303,539 17,375
---------- -------- -------
Net increase in net assets resulting
from operations................... $4,284,279 $ 295,235 $ 58,368
========== ======== =======
</TABLE>
See notes to financial statements.
8
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VARIABLE LIFE
--------------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)............... $ 55,486 $ (3,666) $ 78,845 $ (2,649) $ 9,860 $ (1,063)
Net realized gain on
investments.......... 12,784 22,971 28,682 35,481 733 665
Net increase (decrease)
in unrealized
appreciation of
investments.......... 53,729 92,373 27,188 80,163 (6,588) 5,698
-------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets resulting
from operations........ 121,999 111,678 134,715 112,995 4,005 5,300
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.... 18,016 46,370 16,970 38,780 5,493 12,039
Net asset value of
units redeemed or
used to meet contract
obligations.......... (23,699) (75,563) (65,472) (90,508) (17,052) (23,076)
-------- -------- -------- -------- -------- --------
Net decrease from unit
transactions........... (5,683) (29,193) (48,502) (51,728) (11,559) (11,037)
-------- -------- -------- -------- -------- --------
Net increase (decrease)
in net assets.......... 116,316 82,485 86,213 61,267 (7,554) (5,737)
Net assets beginning of
period................. 633,526 551,041 666,450 605,183 177,041 182,778
-------- -------- -------- -------- -------- --------
Net assets end of
period*................ $749,842 $633,526 $752,663 $666,450 $169,487 $177,041
======== ======== ======== ======== ======== ========
Units outstanding
beginning of period.... 14,958 15,643 15,149 16,377 8,041 8,556
Units issued during the
period................. 410 1,232 424 1,004 249 562
Units redeemed during
the period............. (535) (1,917) (2,098) (2,232) (771) (1,077)
-------- -------- -------- -------- -------- --------
Units outstanding end of
period................. 14,833 14,958 13,475 15,149 7,519 8,041
======== ======== ======== ======== ======== ========
- ---------------
* Includes undistributed
net investment income
of: $170,467 $114,981 $329,976 $251,131 $164,320 $154,460
<CAPTION>
VARIABLE LIFE
--------------------------------------------------------------------------------------------
LONG TERM DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)............... $ 5,386 $ (582) $ 81,183 $ (6,210) $ 1,900 $ 3,835
Net realized gain on
investments.......... 1,462 1,989 64,064 29,580 0 0
Net increase (decrease)
in unrealized
appreciation of
investments.......... (5,245) (2,681) 7,424 110,202 0 0
-------- -------- ---------- ---------- ------- -------
Net increase (decrease)
in net assets resulting
from operations........ 1,603 (1,274) 152,671 133,572 1,900 3,835
-------- -------- ---------- ---------- ------- -------
From unit transactions:
Net proceeds from the
issuance of units.... 1,557 5,926 38,871 85,626 4,179 9,558
Net asset value of
units redeemed or
used to meet contract
obligations.......... (12,721) (15,517) (197,083) (124,946) (9,036) (18,398)
-------- -------- ---------- ---------- ------- -------
Net decrease from unit
transactions........... (11,164) (9,591) (158,212) (39,320) (4,857) (8,840)
-------- -------- ---------- ---------- ------- -------
Net increase (decrease)
in net assets.......... (9,561) (10,865) (5,541) 94,252 (2,957) (5,005)
Net assets beginning of
period................. 95,253 106,118 1,083,741 989,489 85,289 90,294
-------- -------- ---------- ---------- ------- -------
Net assets end of
period*................ $ 85,692 $ 95,253 $1,078,200 $1,083,741 $ 82,332 $ 85,289
======== ======== ========== ========== ======= =======
Units outstanding
beginning of period.... 3,504 3,869 34,279 35,607 4,970 5,499
Units issued during the
period................. 58 226 1,198 2,942 242 570
Units redeemed during
the period............. (471) (591) (5,851) (4,270) (520) (1,099)
-------- -------- ---------- ---------- ------- -------
Units outstanding end of
period................. 3,091 3,504 29,626 34,279 4,692 4,970
======== ======== ========== ========== ======= =======
- ---------------
* Includes undistributed
net investment income
of: $100,334 $ 94,948 $ 536,944 $ 455,761 $ 75,387 $ 73,487
</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
BOND BOND
SUBACCOUNT SUBACCOUNT
-------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss).................. $ 5,692 $ (404) $ 39,759 $ (3,193)
Net realized gain (loss)
on investments.......... 425 (715) (5,721) 795
Net increase (decrease) in
unrealized appreciation
of investments.......... (3,517) 3,148 (19,428) 13,609
-------- -------- -------- --------
Net increase in net assets
resulting from
operations................ 2,600 2,029 14,610 11,211
-------- -------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units....... 51,944 82,991 200,782 425,430
Net asset value of units
redeemed or used to meet
contract obligations.... (14,411) (20,916) (79,679) (91,922)
-------- -------- -------- --------
Net increase (decrease) from
unit transactions......... 37,533 62,075 121,103 333,508
-------- -------- -------- --------
Net increase (decrease) in
net assets................ 40,133 64,104 135,713 344,719
Net assets beginning of
period.................... 90,824 26,720 614,531 269,812
-------- -------- -------- --------
Net assets end of period*... $130,957 $ 90,824 $750,244 $614,531
======== ======== ======== ========
Units outstanding beginning
of period................. 8,138 2,464 50,910 22,127
Units issued during the
period.................... 4,615 7,592 16,696 36,743
Units redeemed during the
period.................... (1,278) (1,918) (6,623) (7,960)
-------- -------- -------- --------
Units outstanding end of
period.................... 11,475 8,138 60,983 50,910
======== ======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 6,702 $ 1,010 $ 50,524 $ 10,765
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)..................$ 12,723 $ (1,630) $ 57,537 $ 86,414
Net realized gain (loss)
on investments.......... 1,465 906 0 0
Net increase (decrease) in
unrealized appreciation
of investments.......... (4,926) 7,805 0 0
-------- -------- ------------ ------------
Net increase in net assets
resulting from
operations................ 9,262 7,081 57,537 86,414
-------- -------- ------------ ------------
From unit transactions:
Net proceeds from the
issuance of units....... 130,029 149,977 8,189,728 15,675,163
Net asset value of units
redeemed or used to meet
contract obligations.... (32,571) (35,779) (10,051,622) (13,113,154)
-------- -------- ------------ ------------
Net increase (decrease) from
unit transactions......... 97,458 114,198 (1,861,894) 2,562,009
-------- -------- ------------ ------------
Net increase (decrease) in
net assets................ 106,720 121,279 (1,804,357) 2,648,423
Net assets beginning of
period.................... 292,657 171,378 4,349,240 1,700,817
-------- -------- ------------ ------------
Net assets end of period*...$ 399,377 $292,657 $ 2,544,883 $ 4,349,240
======== ======== ============ ============
Units outstanding beginning
of period................. 26,498 15,959 400,565 163,465
Units issued during the
period.................... 11,680 13,851 748,016 1,469,700
Units redeemed during the
period.................... (2,921) (3,312) (919,207) (1,232,600)
-------- -------- ------------ ------------
Units outstanding end of
period.................... 35,257 26,498 229,374 400,565
======== ======== ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 16,187 $ 3,464 $ 164,327 $ 106,790
</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 SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
From operations:
Net investment income (loss)........... $ (27,646) $ 46,194 $ (11,720) $ 28,953 $ (122,937) $ 134,759
Net realized gain on investments....... 239,692 174,857 77,048 30,574 1,123,296 783,666
Net increase in unrealized appreciation
of investments....................... 849,548 357,881 638,619 78,392 3,283,920 2,166,435
----------- ---------- ---------- ---------- ----------- -----------
Net increase in net assets resulting from
operations............................. 1,061,594 578,932 703,947 137,919 4,284,279 3,084,860
----------- ---------- ---------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of
units................................ 5,014,140 4,459,200 1,556,044 2,152,749 17,174,636 20,620,582
Net asset value of units redeemed or
used to meet contract obligations.... (1,116,215) (952,864) (440,462) (454,428) (4,611,684) (4,735,332)
----------- ---------- ---------- ---------- ----------- -----------
Net increase from unit transactions...... 3,897,925 3,506,336 1,115,582 1,698,321 12,562,952 15,885,250
----------- ---------- ---------- ---------- ----------- -----------
Net increase in net assets............... 4,959,519 4,085,268 1,819,529 1,836,240 16,847,231 18,970,110
Net assets beginning of period........... 5,129,744 1,044,476 2,437,067 600,827 25,210,073 6,239,963
----------- ---------- ---------- ---------- ----------- -----------
Net assets end of period*................ $ 10,089,263 $5,129,744 $ 4,256,596 $2,437,067 $ 42,057,304 $ 25,210,073
=========== ========== ========== ========== =========== ===========
Units outstanding beginning of period.... 319,002 80,766 191,743 52,194 1,532,486 465,095
Units issued during the period........... 298,118 303,412 113,650 176,984 988,680 1,382,408
Units redeemed during the period......... (66,418) (65,176) (32,362) (37,435) (267,217) (315,017)
----------- ---------- ---------- ---------- ----------- -----------
Units outstanding end of period.......... 550,702 319,002 273,031 191,743 2,253,949 1,532,486
=========== ========== ========== ========== =========== ===========
- ---------------
* Includes undistributed net investment
income of: $ 43,716 $ 71,362 $ 33,666 $ 45,386 $ 195,895 $ 318,832
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
-----------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
From operations:
Net investment income (loss)...........$ (8,304) $ (1,058) $ 40,993 $ 42,346
Net realized gain on investments....... 48,639 23,372 10,996 180
Net increase in unrealized appreciation
of investments....................... 254,900 96,691 6,379 25,863
---------- ---------- ---------- --------
Net increase in net assets resulting from
operations............................. 295,235 119,005 58,368 68,389
---------- ---------- ---------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 1,190,818 1,524,746 569,785 535,643
Net asset value of units redeemed or
used to meet contract obligations.... (292,550) (291,724) (146,866) (125,293)
---------- ---------- ---------- --------
Net increase from unit transactions...... 898,268 1,233,022 422,919 410,350
---------- ---------- ---------- --------
Net increase in net assets............... 1,193,503 1,352,027 481,287 478,739
Net assets beginning of period........... 1,731,444 379,417 831,448 352,709
---------- ---------- ---------- --------
Net assets end of period*................$ 2,924,947 $1,731,444 $1,312,735 $831,448
========== ========== ========== ========
Units outstanding beginning of period.... 128,820 31,566 66,709 31,730
Units issued during the period........... 85,642 120,205 44,800 45,756
Units redeemed during the period......... (21,004) (22,951) (11,513) (10,777)
---------- ---------- ---------- --------
Units outstanding end of period.......... 193,458 128,820 99,996 66,709
========== ========== ========== ========
- ---------------
* Includes undistributed net investment
income of: $ 8,576 $ 16,880 $ 90,740 $ 49,747
</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 61 to 89 and 91 to 119,
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 1997 aggregated $4,779,757.
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 June 30, 1997 (unaudited) 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 period:
Shares......................... 20,860 28,432 16,153 7,418 60,241 85,289
Amount......................... $483,575 $480,537 $168,956 $ 87,403 $ 838,945 $ 85,289
-------- -------- -------- ------- -------- -------
Shares acquired:
Shares......................... 989 864 669 147 2,881 12,135
Amount......................... $ 30,151 $ 20,785 $ 13,560 $ 1,807 $ 52,456 $ 12,135
Shares received for reinvestment
of dividends:
Shares......................... 2,038 3,766 1,007 483 5,055 2,153
Amount......................... $ 57,504 $ 80,960 $ 10,378 $ 5,654 $ 84,416 $ 2,153
Shares redeemed:
Shares......................... (1,199) (2,620) (2,431) (1,082) (11,549) (15,091)
Amount......................... $(25,068) $(42,721) $(24,904) $(11,778) $ (149,837) $ (15,091)
-------- -------- -------- ------- -------- -------
Net change:
Shares......................... 1,828 2,010 (755) (452) (3,613) (803)
Amount......................... $ 62,587 $ 59,024 $ (966) $ (4,317) $ (12,965) $ (803)
-------- -------- -------- ------- -------- -------
Shares end of period:
Shares......................... 22,688 30,442 15,398 6,966 56,628 84,486
Amount......................... $546,162 $539,561 $167,990 $ 83,086 $ 825,980 $ 84,486
======== ======== ======== ======= ======== =======
</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 June 30, 1997
(unaudited) consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------- ---------------------------------------------------------------
INTERMEDIATE LONG HIGH
TERM TERM GOVERNMENT MONEY INTERNATIONAL YIELD
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
period:
Shares...... 8,287 47,861 27,661 4,349,240 177,746 120,528 734,773 286,189 150,898
Amount...... $ 88,592 $ 592,645 $285,560 $ 4,349,240 $ 4,748,651 $2,362,738 $22,951,520 $ 1,634,862 $ 805,224
------- -------- -------- ---------- ---------- ---------- ----------- ---------- --------
Shares
acquired:
Shares...... 5,485 18,287 13,981 9,917,475 174,447 75,802 494,983 203,665 128,291
Amount...... $ 58,619 $ 226,492 $146,754 $ 9,917,475 $ 5,274,283 $1,656,067 $17,975,960 $ 1,277,379 $ 705,867
Shares
received for
reinvestment
of
dividends:
Shares...... 591 3,615 1,373 67,446 0 0 0 0 8,135
Amount...... $ 6,095 $ 42,293 $ 14,009 $ 67,446 $ 0 $ 0 $ 0 $ 0 $ 44,881
Shares
redeemed:
Shares...... (2,009) (8,767) (4,834) (11,789,278) (46,457) (25,314) (153,020) (61,604) (52,067)
Amount...... $(21,065) $(113,644) $(49,117) $(11,789,278) $(1,164,313) $ (475,157) $(4,412,649) $ (338,776) $ (275,840)
------- -------- -------- ---------- ---------- ---------- ----------- ---------- --------
Net change:
Shares...... 4,067 13,135 10,520 (1,804,357) 127,990 50,488 341,963 142,061 84,359
Amount...... $ 43,649 $ 155,141 $111,646 $ (1,804,357) $ 4,109,970 $1,180,910 $13,563,311 $ 938,603 $ 474,908
------- -------- -------- ---------- ---------- ---------- ----------- ---------- --------
Shares end of
period:
Shares...... 12,354 60,996 38,181 2,544,883 305,736 171,016 1,076,736 428,250 235,257
Amount...... $132,241 $ 747,786 $397,206 $ 2,544,883 $ 8,858,621 $3,543,648 $36,514,831 $ 2,573,465 $1,280,132
======= ======== ======== ========== ========== ========== =========== ========== ========
</TABLE>
14
<PAGE> 17
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<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)............ $ 61,373 $ 37,691 $ 6,678 $ 12,949 $ 57,799 $ 30,382
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2).............. $ 77,328 $ 44,482 $ 6,781 $ 13,711 $ 75,214 $ 30,382
Amount due from MONY.................... 135 112 0 5 0 21
Amount due from MONY Series Fund,
Inc. ................................. 198 180 0 68 29 96
-------- -------- -------- -------- -------- --------
Total assets.................. 77,661 44,774 6,781 13,784 75,243 30,499
-------- -------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY...................... 198 180 0 68 29 96
Amount due to MONY Series Fund, Inc. ... 135 112 0 5 0 21
-------- -------- -------- -------- -------- --------
Total liabilities............. 333 292 0 73 29 117
-------- -------- -------- -------- -------- --------
Net assets.............................. $ 77,328 $ 44,482 $ 6,781 $ 13,711 $ 75,214 $ 30,382
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments......... $ 75,907 $ 48,303 $ 8,964 $ 16,107 $ 65,982 $ 50,700
Cost of insurance withdrawals (Note
3)................................. (49,894) (30,884) (12,533) (35,073) (35,188) (44,886)
Undistributed net investment income... 14,348 12,907 9,173 26,729 23,142 24,568
Accumulated net realized gain on
investments........................ 21,012 7,365 1,074 5,186 3,863 0
Unrealized appreciation of
investments........................ 15,955 6,791 103 762 17,415 0
-------- -------- -------- -------- -------- --------
Net assets.............................. $ 77,328 $ 44,482 $ 6,781 $ 13,711 $ 75,214 $ 30,382
======== ======== ======== ======== ======== ========
Number of units outstanding*............ 1,934 1,076 332 581 2,386 1,803
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*... $ 39.99 $ 41.35 $ 20.42 $ 23.58 $ 31.52 $ 16.85
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
15
<PAGE> 18
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................. $ 576 $1,336 $ 25,249 $ 79,858 $239,947 $ 67,331
====== ====== ======= ======= ======== =======
Investments in Enterprise Accumulation Trust
at net asset value (Note 2)................. $ 0 $ 0 $ 0 $ 0 $261,585 $ 75,791
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)........................ 581 1,367 24,557 79,858 0 0
Amount due from MONY.......................... 0 0 0 0 0 1,100
Amount due from Enterprise Accumulation
Trust....................................... 0 0 0 0 518 229
------ ------ ------- ------- -------- -------
Total assets.......................... 581 1,367 24,557 79,858 262,103 77,120
------ ------ ------- ------- -------- -------
LIABILITIES
Amount due to MONY............................ 0 0 0 0 518 229
Amount due to Enterprise Accumulation Trust... 0 0 0 0 0 1,100
------ ------ ------- ------- -------- -------
Total liabilities..................... 0 0 0 0 518 1,329
------ ------ ------- ------- -------- -------
Net assets.................................... $ 581 $1,367 $ 24,557 $ 79,858 $261,585 $ 75,791
====== ====== ======= ======= ======== =======
Net assets consist of:
Contractholders' net payments............... $ 709 $1,555 $ 24,957 $ 83,588 $262,794 $ 72,706
Cost of insurance withdrawals (Note 3)...... (135) (221) (640) (5,231) (25,066) (6,551)
Undistributed/accumulated net investment
income (loss)............................. 0 6 999 1,501 154 120
Accumulated net realized gain (loss) on
investments............................... 2 (4) (67) 0 2,065 1,056
Unrealized appreciation (depreciation) of
investments............................... 5 31 (692) 0 21,638 8,460
------ ------ ------- ------- -------- -------
Net assets.................................... $ 581 $1,367 $ 24,557 $ 79,858 $261,585 $ 75,791
====== ====== ======= ======= ======== =======
Number of units outstanding*.................. 57 134 2,427 7,771 22,713 5,942
------ ------ ------- ------- -------- -------
Net asset value per unit outstanding*......... $10.21 $10.23 $ 10.12 $ 10.28 $ 11.52 $ 12.76
====== ====== ======= ======= ======== =======
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................. $806,093 $ 73,449 $ 60,700
======== ======= =======
Investments in Enterprise Accumulation Trust
at net asset value (Note 2)................. $861,865 $ 82,578 $ 62,361
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)........................ 0 0 0
Amount due from MONY.......................... 2,262 1,090 0
Amount due from Enterprise Accumulation
Trust....................................... 1,625 250 0
-------- ------- -------
Total assets.......................... 865,752 83,918 62,361
-------- ------- -------
LIABILITIES
Amount due to MONY............................ 1,625 250 0
Amount due to Enterprise Accumulation Trust... 2,262 1,090 0
-------- ------- -------
Total liabilities..................... 3,887 1,340 0
-------- ------- -------
Net assets.................................... $861,865 $ 82,578 $ 62,361
======== ======= =======
Net assets consist of:
Contractholders' net payments............... $863,757 $ 77,011 $ 61,687
Cost of insurance withdrawals (Note 3)...... (61,547) (3,652) (2,015)
Undistributed/accumulated net investment
income (loss)............................. (265) (130) 1,054
Accumulated net realized gain (loss) on
investments............................... 4,148 220 (26)
Unrealized appreciation (depreciation) of
investments............................... 55,772 9,129 1,661
-------- ------- -------
Net assets.................................... $861,865 $ 82,578 $ 62,361
======== ======= =======
Number of units outstanding*.................. 71,416 7,307 5,849
-------- ------- -------
Net asset value per unit outstanding*......... $ 12.07 $ 11.30 $ 10.66
======== ======= =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
16
<PAGE> 19
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<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......................... $ 5,414 $4,188 $ 384 $ 836 $5,526 $ 775
Mortality and expense risk charges (Note
3).................................... 191 111 20 40 208 91
------- ------ ---- ----- ------ ------
Net investment income................... 5,223 4,077 364 796 5,318 684
------- ------ ---- ----- ------ ------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................... 4,929 3,513 249 506 1,865 1,480
Cost of shares sold................... 3,200 2,428 238 491 1,225 1,480
------- ------ ---- ----- ------ ------
Net realized gain on investments........ 1,729 1,085 11 15 640 0
Net increase (decrease) in unrealized
appreciation of investments........... 4,496 1,880 (219) (545) 3,949 0
------- ------ ---- ----- ------ ------
Net realized and unrealized gain (loss)
on investments........................ 6,225 2,965 (208) (530) 4,589 0
------- ------ ---- ----- ------ ------
Net increase in net assets resulting
from operations....................... $ 11,448 $7,042 $ 156 $ 266 $9,907 $ 684
======= ====== ==== ===== ====== ======
</TABLE>
See notes to financial statements.
17
<PAGE> 20
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------------------
GOVERNMENT
SECURITIES INTERMEDIATE LONG TERM MONEY
SUBACCOUNT TERM BOND BOND MARKET EQUITY SMALL CAP
-------------- SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
FOR THE PERIOD ------------ ------------ ------------ ------------ ------------
MARCH 24, FOR THE SIX FOR THE SIX FOR THE SIX FOR THE SIX FOR THE SIX
1997** THROUGH MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1997 1997 1997 1997 1997
-------------- ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Dividend income....................... $ 0 $ 9 $1,064 $ 1,445 $ 0 $ 0
Mortality and expense risk charges
(Note 3)............................ 0 3 63 213 533 141
---- ---- ------ -------- ------- -------
Net investment income (loss).......... 0 6 1,001 1,232 (533) (141)
---- ---- ------ -------- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 136 657 1,404 793,554 45,539 12,891
Cost of shares sold................. 134 661 1,471 793,554 43,311 11,839
---- ---- ------ -------- ------- -------
Net realized gain (loss) on
investments......................... 2 (4) (67) 0 2,228 1,052
Net increase (decrease) in unrealized
appreciation of investments......... 5 31 (627) 0 22,335 8,450
---- ---- ------ -------- ------- -------
Net realized and unrealized gain
(loss) on investments............... 7 27 (694) 0 24,563 9,502
---- ---- ------ -------- ------- -------
Net increase in net assets resulting
from operations..................... $ 7 $ 33 $ 307 $ 1,232 $ 24,030 $ 9,361
---- ---- ------ -------- ------- -------
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ ------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30,
1997 1997 1997
------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<C> <C> <C>
Dividend income....................... $ 0 $ 0 $1,154
Mortality and expense risk charges
(Note 3)............................ 1,451 180 101
------- ------ ------
Net investment income (loss).......... (1,451) (180) 1,053
------- ------ ------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 88,575 4,643 7,019
Cost of shares sold................. 84,372 4,423 7,045
------- ------ ------
Net realized gain (loss) on
investments......................... 4,203 220 (26)
Net increase (decrease) in unrealized
appreciation of investments......... 58,275 8,968 1,660
------- ------ ------
Net realized and unrealized gain
(loss) on investments............... 62,478 9,188 1,634
------- ------ ------
Net increase in net assets resulting
from operations..................... $ 61,027 $9,008 $2,687
------- ------ ------
</TABLE>
- ---------------
** Commencement of operations.
See notes to financial statements.
18
<PAGE> 21
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ 5,223 $ (381) $ 4,077 $ (128) $ 364 $ (39)
Net realized gain on
investments................... 1,729 6,197 1,085 1,851 11 19
Net increase (decrease) in
unrealized appreciation of
investments................... 4,496 6,121 1,880 3,722 (219) 218
------- ------- ------- ------- ------ ------
Net increase (decrease) in net
assets resulting from
operations...................... 11,448 11,937 7,042 5,445 156 198
------- ------- ------- ------- ------ ------
From unit transactions:
Net proceeds from the issuance
of units...................... 12,155 7,362 7,274 6,575 204 372
Net asset value of units
redeemed or used to meet
contract obligations.......... (4,107) (20,999) (2,919) (8,207) (229) (432)
------- ------- ------- ------- ------ ------
Net increase (decrease) from unit
transactions.................... 8,048 (13,637) 4,355 (1,632) (25) (60)
------- ------- ------- ------- ------ ------
Net increase (decrease) in net
assets.......................... 19,496 (1,700) 11,397 3,813 131 138
Net assets beginning of period.... 57,832 59,532 33,085 29,272 6,650 6,512
------- ------- ------- ------- ------ ------
Net assets end of period*......... $ 77,328 $ 57,832 $ 44,482 $ 33,085 $6,781 $6,650
======= ======= ======= ======= ====== ======
Units outstanding beginning of
period.......................... 1,726 2,137 965 1,016 333 336
Units issued during the period.... 339 241 201 213 10 19
Units redeemed during the
period.......................... (131) (652) (90) (264) (11) (22)
------- ------- ------- ------- ------ ------
Units outstanding end of period... 1,934 1,726 1,076 965 332 333
======= ======= ======= ======= ====== ======
- ---------------
* Includes undistributed net
investment income of: $ 14,348 $ 9,125 $ 12,907 $ 8,830 $9,173 $8,809
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------------------
LONG TERM DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
-------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <<C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)....$ 796 $ (80) $ 5,318 $ (373) $ 684 $ 1,372
Net realized gain on
investments................... 15 33 640 1,052 0 0
Net increase (decrease) in
unrealized appreciation of
investments................... (545) (93) 3,949 7,350 0 0
------- ------- ------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations...................... 266 (140) 9,907 8,029 684 1,372
------- ------- ------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 306 608 1,148 2,620 306 184
Net asset value of units
redeemed or used to meet
contract obligations.......... (465) (985) (1,658) (3,238) (1,371) (2,285)
------- ------- ------- ------- ------- -------
Net increase (decrease) from unit
transactions.................... (159) (377) (510) (618) (1,065) (2,101)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net
assets.......................... 107 (517) 9,397 7,411 (381) (729)
Net assets beginning of period.... 13,604 14,121 65,817 58,406 30,763 31,492
------- ------- ------- ------- ------- -------
Net assets end of period*.........$ 13,711 $ 13,604 $ 75,214 $ 65,817 $ 30,382 $ 30,763
======= ======= ======= ======= ======= =======
Units outstanding beginning of
period.......................... 588 605 2,404 2,427 1,867 1,997
Units issued during the period.... 13 28 39 103 19 12
Units redeemed during the
period.......................... (20) (45) (57) (126) (83) (142)
------- ------- ------- ------- ------- -------
Units outstanding end of period... 581 588 2,386 2,404 1,803 1,867
======= ======= ======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 26,729 $ 25,933 $ 23,142 $ 17,824 $ 24,568 $ 23,884
</TABLE>
See notes to financial statements.
19
<PAGE> 22
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE TERM LONG TERM
SECURITIES BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ------------------------------ -----------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 24, FOR THE SIX DECEMBER 6, FOR THE SIX DECEMBER 6,
1997** THROUGH MONTHS ENDED 1996** THROUGH MONTHS ENDED 1996** THROUGH
JUNE 30, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1997 1996 1997 1996
-------------- ------------- -------------- ------------ --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).................. $ 0 $ 6 $ 0 $ 1,001 $ (2)
Net realized gain (loss) on investments....... 2 (4) 0 (67) 0
Net increase (decrease) in unrealized
appreciation of investments................. 5 31 0 (627) (65)
---- ------ ---- ------- -------
Net increase (decrease) in net assets resulting
from operations............................... 7 33 0 307 (67)
---- ------ ---- ------- -------
From unit transactions:
Net proceeds from the issuance of units....... 709 1,698 43 12,804 12,153
Net asset value of units redeemed or used to
meet contract obligations................... (135) (403) (4) (636) (4)
---- ------ ---- ------- -------
Net increase from unit transactions............. 574 1,295 39 12,168 12,149
---- ------ ---- ------- -------
Net increase in net assets...................... 581 1,328 39 12,475 12,082
Net assets beginning of period.................. 0 39 0 12,082 0
---- ------ ---- ------- -------
Net assets end of period*....................... $581 $ 1,367 $ 39 $ 24,557 $ 12,082
==== ====== ==== ======= =======
Units outstanding beginning of period........... 0 4 0 1,217 0
Units issued during the period.................. 67 170 4 1,274 1,217
Units redeemed during the period................ (10) (40) 0 (64) 0
---- ------ ---- ------- -------
Units outstanding end of period................. 57 134 4 2,427 1,217
==== ====== ==== ======= =======
- ---------------
* Includes undistributed/accumulated net
investment income (loss) of: $ 0 $ 6 $ 0 $ 999 $ (2)
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------
MONEY
MARKET EQUITY
SUBACCOUNT SUBACCOUNT
---------------------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX OCTOBER 17, FOR THE SIX NOVEMBER 17,
MONTHS ENDED 1996** THROUGH MONTHS ENDED 1996** THROUGH
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)..................$ 1,232 $ 269 $ (533) $ 687
Net realized gain (loss) on investments....... 0 0 2,228 (163)
Net increase (decrease) in unrealized
appreciation of investments................. 0 0 22,335 (697)
-------- -------- -------- -------
Net increase (decrease) in net assets resulting
from operations............................... 1,232 269 24,030 (173)
-------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of units....... 762,250 221,062 210,893 54,842
Net asset value of units redeemed or used to
meet contract obligations................... (750,555) (154,400) (27,498) (509)
-------- -------- -------- -------
Net increase from unit transactions............. 11,695 66,662 183,395 54,333
-------- -------- -------- -------
Net increase in net assets...................... 12,927 66,931 207,425 54,160
Net assets beginning of period.................. 66,931 0 54,160 0
-------- -------- -------- -------
Net assets end of period*.......................$ 79,858 $ 66,931 $261,585 $ 54,160
======== ======== ======== =======
Units outstanding beginning of period........... 6,655 0 5,358 0
Units issued during the period.................. 74,756 22,031 19,943 5,409
Units redeemed during the period................ (73,640) (15,376) (2,588) (51)
-------- -------- -------- -------
Units outstanding end of period................. 7,771 6,655 22,713 5,358
======== ======== ======== =======
- ---------------
* Includes undistributed/accumulated net
investment income (loss) of: $ 1,501 $ 269 $ 154 $ 687
** Commencement of operations.
</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 (CONTINUED)
----------------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX DECEMBER 6, FOR THE SIX DECEMBER 6,
MONTHS ENDED 1996** THROUGH MONTHS ENDED 1996** THROUGH
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)..................... $ (141) $ 261 $ (1,451) $ 1,186
Net realized gains (losses) on investments....... 1,052 4 4,203 (55)
Net increase (decrease) in unrealized
appreciation of investments.................... 8,450 10 58,275 (2,503)
------- ------- -------- --------
Net increase (decrease) in net assets resulting
from operations.................................. 9,361 275 61,027 (1,372)
------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.......... 56,642 16,647 737,351 129,958
Net asset value of units redeemed or used to meet
contract obligations........................... (6,966) (168) (63,669) (1,430)
------- ------- -------- --------
Net increase from unit transactions................ 49,676 16,479 673,682 128,528
------- ------- -------- --------
Net increase in net assets......................... 59,037 16,754 734,709 127,156
Net assets beginning of period..................... 16,754 0 127,156 0
------- ------- -------- --------
Net assets end of period*.......................... $ 75,791 $ 16,754 $861,865 $127,156
======= ======= ======== ========
Units outstanding beginning of period.............. 1,611 0 11,951 0
Units issued during the period..................... 4,945 1,628 65,101 12,086
Units redeemed during the period................... (614) (17) (5,636) (135)
------- ------- -------- --------
Units outstanding end of period.................... 5,942 1,611 71,416 11,951
======= ======= ======== ========
- ---------------
* Includes undistributed/accumulated net
investment income (loss) of: $ 120 $ 261 $ (265) $ 1,186
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX OCTOBER 17, FOR THE SIX NOVEMBER 17,
MONTHS ENDED 1996** THROUGH MONTHS ENDED 1996** THROUGH
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- -------------- ------------ --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)..................... $ (180) $ 50 $ 1,053 $ 1
Net realized gains (losses) on investments....... 220 0 (26) 0
Net increase (decrease) in unrealized
appreciation of investments.................... 8,968 161 1,660 1
------- ------- ------- ----
Net increase (decrease) in net assets resulting
from operations.................................. 9,008 211 2,687 2
------- ------- ------- ----
From unit transactions:
Net proceeds from the issuance of units.......... 62,752 14,259 61,799 392
Net asset value of units redeemed or used to meet
contract obligations........................... (3,642) (10) (2,494) (25)
------- ------- ------- ----
Net increase from unit transactions................ 59,110 14,249 59,305 367
------- ------- ------- ----
Net increase in net assets......................... 68,118 14,460 61,992 369
Net assets beginning of period..................... 14,460 0 369 0
------- ------- ------- ----
Net assets end of period*.......................... $ 82,578 $ 14,460 $ 62,361 $369
======= ======= ======= ====
Units outstanding beginning of period.............. 1,439 0 37 0
Units issued during the period..................... 6,216 1,440 6,053 39
Units redeemed during the period................... (348) (1) (241) (2)
------- ------- ------- ----
Units outstanding end of period.................... 7,307 1,439 5,849 37
======= ======= ======= ====
- ---------------
* Includes undistributed/accumulated net
investment income (loss) of: $ (130) $ 50 $ 1,054 $ 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 fifteen 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 and 1997. 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 61 to 89 and 91 to 119,
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 1997 aggregated $112,199.
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 June 30, 1997 (unaudited) 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 period:
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
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................ 401 320 19 25 63 324
Amount............................ $ 12,786 $ 7,757 $ 204 $ 307 $ 1,147 $ 324
Shares received for reinvestment of
dividends:
Shares............................ 192 195 37 71 331 775
Amount............................ $ 5,414 $ 4,188 $ 384 $ 836 $ 5,526 $ 775
Shares redeemed:
Shares............................ (157) (145) (23) (41) (102) (1,480)
Amount............................ $ (3,200) $ (2,428) $ (238) $ (491) $(1,225) $ (1,480)
------- ------- ------ ------- ------- -------
Net change:
Shares............................ 436 370 33 55 292 (381)
Amount............................ $ 15,000 $ 9,517 $ 350 $ 652 $ 5,448 $ (381)
------- ------- ------ ------- ------- -------
Shares end of period:
Shares............................ 2,340 1,782 640 1,114 3,950 30,382
Amount............................ $ 61,373 $ 37,691 $6,678 $12,949 $57,799 $ 30,382
======= ======= ====== ======= ======= =======
</TABLE>
23
<PAGE> 26
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at June 30, 1997
(unaudited) consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------- --------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY INTERNATIONAL HIGH YIELD
SECURITIES TERM BOND BOND 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 period:
Shares..... 0 4 941 66,931 1,877 829 3,706 2,390 67
Amount..... $ 0 $ 39 $12,147 $ 66,931 $ 54,857 $ 16,744 $ 129,659 $14,299 $ 368
----- ------ ------- --------- -------- -------- -------- ------- -------
Shares
acquired:
Shares..... 69 186 1,079 805,036 7,533 2,802 20,774 10,430 12,167
Amount..... $ 710 $1,949 $13,509 $ 805,036 $ 228,401 $ 62,426 $ 760,806 $63,573 $ 66,223
Shares
received
for
reinvestment
of
dividends:
Shares..... 0 1 91 1,445 0 0 0 0 209
Amount..... $ 0 $ 9 $ 1,064 $ 1,445 $ 0 $ 0 $ 0 $ 0 $ 1,154
Shares
redeemed:
Shares..... (13) (62) (114) (793,554) (1,483) (586) (2,415) (730) (1,267)
Amount..... $ (134) $ (661) $(1,471) $(793,554) $ (43,311) $(11,839) $ (84,372) $(4,423) $ (7,045)
----- ------ ------- --------- -------- -------- -------- ------- -------
Net change:
Shares..... 56 125 1,056 12,927 6,050 2,216 18,359 9,700 11,109
Amount..... $ 576 $1,297 $13,102 $ 12,927 $ 185,090 $ 50,587 $ 676,434 $59,150 $ 60,332
----- ------ ------- --------- -------- -------- -------- ------- -------
Shares end of
period:
Shares..... 56 129 1,997 79,858 7,927 3,045 22,065 12,090 11,176
Amount..... $ 576 $1,336 $25,249 $ 79,858 $ 239,947 $ 67,331 $ 806,093 $73,449 $ 60,700
===== ====== ======= ========= ======== ======== ======== ======= =======
</TABLE>
24
<PAGE> 27
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<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)...................... $ 73,411 $ 89,336 $ 33,450 $ 89,782 $ 52,559
======== ======== ======= ======== =======
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. $120,726 $112,615 $ 33,680 $132,486 $ 52,559
Amount due from MONY Series Fund, Inc. ........... 5 5 0 0 0
-------- -------- ------- -------- -------
Total assets............................ 120,731 112,620 33,680 132,486 52,559
-------- -------- ------- -------- -------
LIABILITIES
Amount due to MONY America........................ 5 5 0 0 0
-------- -------- ------- -------- -------
Net assets........................................ $120,726 $112,615 $ 33,680 $132,486 $ 52,559
======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net payments................... $ 24,640 $ (2,043) $ 17,317 $ 33,265 $ 36,061
Cost of insurance withdrawals (Note 3).......... (7,728) (12,605) (5,133) (13,012) (3,411)
Undistributed net investment income............. 24,192 61,939 22,462 55,756 19,909
Accumulated net realized gain (loss) on
investments.................................. 32,307 42,045 (1,196) 13,772 0
Unrealized appreciation of investments.......... 47,315 23,279 230 42,705 0
-------- -------- ------- -------- -------
Net assets........................................ $120,726 $112,615 $ 33,680 $132,486 $ 52,559
======== ======== ======= ======== =======
Number of units outstanding*...................... 3,021 2,969 1,790 4,382 3,380
-------- -------- ------- -------- -------
Net asset value per unit outstanding*............. $ 39.97 $ 37.94 $ 18.82 $ 30.23 $ 15.55
======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
25
<PAGE> 28
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income................................. $ 9,410 $ 11,611 $ 1,909 $ 9,721 $1,318
Mortality and expense risk charges (Note 3)..... 462 431 140 516 220
------- ------- ------ ------- ------
Net investment income........................... 8,948 11,180 1,769 9,205 1,098
------- ------- ------ ------- ------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales........................... 3,250 1,678 1,883 3,019 1,189
Cost of shares sold........................... 1,319 1,214 1,956 2,118 1,189
------- ------- ------ ------- ------
Net realized gain (loss) on investments......... 1,931 464 (73) 901 0
Net increase in unrealized appreciation
(depreciation) of investments................. 8,590 7,495 (958) 7,152 0
------- ------- ------ ------- ------
Net realized and unrealized gain (loss) on
investments................................... 10,521 7,959 (1,031) 8,053 0
------- ------- ------ ------- ------
Net increase in net assets resulting from
operations.................................... $ 19,469 $ 19,139 $ 738 $ 17,258 $1,098
======= ======= ====== ======= ======
</TABLE>
See notes to financial statements.
26
<PAGE> 29
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ 8,948 $ (795) $ 11,180 $ (680) $ 1,769 $ (305)
Net realized gain (loss) on
investments................. 1,931 674 464 26,110 (73) (433)
Net increase (decrease) in
unrealized appreciation of
investments................. 8,590 17,009 7,495 (7,802) (958) 1,495
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net
assets resulting from
operations.................... 19,469 16,888 19,139 17,628 738 757
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units.................... (265) 244 (272) 1,110 (238) 273
Net asset value of units
redeemed or used to meet
contract obligations........ 24 (353) (33) (80,678) 24 (11,607)
-------- -------- -------- -------- -------- --------
Net increase (decrease) from
unit transactions............. (241) (109) (305) (79,568) (214) (11,334)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net
assets........................ 19,228 16,779 18,834 (61,940) 524 (10,577)
Net assets beginning of
period........................ 101,498 84,719 93,781 155,721 33,156 43,733
-------- -------- -------- -------- -------- --------
Net assets end of period*...... $120,726 $101,498 $112,615 $ 93,781 $ 33,680 $ 33,156
======== ======== ======== ======== ======== ========
Units outstanding beginning of
period........................ 3,027 3,031 2,978 5,872 1,802 2,443
Units issued during the
period........................ (8) 8 (9) 41 (13) 14
Units redeemed during the
period........................ 2 (12) 0 (2,935) 1 (655)
-------- -------- -------- -------- -------- --------
Units outstanding end of
period........................ 3,021 3,027 2,969 2,978 1,790 1,802
======== ======== ======== ======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 24,192 $ 15,244 $ 61,939 $ 50,759 $ 22,462 $ 20,693
<CAPTION>
LONG TERM
BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------------------------- ----------------------------
FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1996 1997 1996 1997 1996
------------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ (69) $ 9,205 $ (925) $ 1,098 $ 2,251
Net realized gain (loss) on
investments................. (2,624) 901 581 0 0
Net increase (decrease) in
unrealized appreciation of
investments................. 218 7,152 14,096 0 0
-------- -------- -------- ------- --------
Net increase (decrease) in net
assets resulting from
operations.................... (2,475) 17,258 13,752 1,098 2,251
-------- -------- -------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units.................... 1,724 0 440 (236) 196
Net asset value of units
redeemed or used to meet
contract obligations........ (48,707) (162) (1,094) 74 (11,945)
-------- -------- -------- ------- --------
Net increase (decrease) from
unit transactions............. (46,983) (162) (654) (162) (11,749)
-------- -------- -------- ------- --------
Net increase (decrease) in net
assets........................ (49,458) 17,096 13,098 936 (9,498)
Net assets beginning of
period........................ 49,458 115,390 102,292 51,623 61,121
-------- -------- -------- ------- --------
Net assets end of period*...... $ 0 $132,486 $115,390 $ 52,559 $ 51,623
======== ======== ======== ======= ========
Units outstanding beginning of
period........................ 2,268 4,388 4,414 3,391 4,185
Units issued during the
period........................ 42 0 19 (16) 16
Units redeemed during the
period........................ (2,310) (6) (45) 5 (810)
-------- -------- -------- ------- --------
Units outstanding end of
period........................ 0 4,382 4,388 3,380 3,391
======== ======== ======== ======= ========
- ---------------
* Includes undistributed net
investment income of: $ 0 $ 55,756 $ 46,551 $ 19,909 $ 18,811
</TABLE>
See notes to financial statements.
27
<PAGE> 30
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 61 to 89 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
1997 aggregated $75.
MONY America receives from the Variable Account She 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.
28
<PAGE> 31
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1997 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ----------- ---------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares...................................... 3,342 2,978 1,802 4,388 51,623
Amount...................................... $ 62,772 $ 77,997 $ 31,968 $79,840 $ 51,623
--------- --------- ------------ ----------- ---------
Shares acquired:
Shares...................................... 89 43 147 139 807
Amount...................................... $ 2,548 $ 942 $ 1,529 $ 2,339 $ 807
Shares received for reinvestment of dividends:
Shares...................................... 333 540 185 582 1,318
Amount...................................... $ 9,410 $ 11,611 $ 1,909 $ 9,721 $ 1,318
Shares redeemed:
Shares...................................... (111) (74) (180) (177) (1,189)
Amount...................................... $ (1,319) $ (1,214) $ (1,956) $(2,118) $ (1,189)
--------- --------- ------------ ----------- ---------
Net change:
Shares...................................... 311 509 152 544 936
Amount...................................... $ 10,639 $ 11,339 $ 1,482 $ 9,942 $ 936
--------- --------- ------------ ----------- ---------
Shares end of period:
Shares...................................... 3,653 3,487 1,954 4,932 52,559
Amount...................................... $ 73,411 $ 89,336 $ 33,450 $89,782 $ 52,559
======= ======= ========= ======== =======
</TABLE>
29
<PAGE> 32
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4).......................................... $ 33,814 $ 56,545
======= =========
Investments in MONY Series Fund, Inc. at net asset value (Note 2)..... $ 54,620 $ 78,872
------- ---------
Net assets............................................................ $ 54,620 $ 78,872
======= =========
Net assets consist of:
Contractholders' net payments....................................... $ 16,607 $ (141,660)
Cost of insurance withdrawals (Note 3).............................. (1,903) (65,953)
Undistributed net investment income................................. 16,441 150,851
Accumulated net realized gains on investments....................... 2,669 113,307
Unrealized appreciation of investments.............................. 20,806 22,327
------- ---------
Net assets............................................................ $ 54,620 $ 78,872
======= =========
Number of units outstanding*.......................................... 1,525 2,790
------- ---------
Net asset value per unit outstanding*................................. $ 35.83 $ 28.27
======= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
30
<PAGE> 33
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
Dividend income..................................................... $5,632 $ 5,793
Mortality and expense risk charges (Note 3)......................... 223 329
------ -------
Net investment income............................................... 5,409 5,464
------ -------
Realized and unrealized gain on investments (Note 2):
Proceeds from sales............................................... 264 570
Cost of shares sold............................................... 154 399
------ -------
Net realized gain on investments.................................... 110 171
Net increase in unrealized appreciation of investments.............. 3,744 4,629
------ -------
Net realized and unrealized gain on investments..................... 3,854 4,800
------ -------
Net increase in net assets resulting from operations................ $9,263 $ 10,264
====== =======
</TABLE>
See notes to financial statements.
31
<PAGE> 34
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).................. $ 5,409 $ (276) $ 5,464 $ (552)
Net realized gain on investments.............. 110 207 171 268
Net increase in unrealized appreciation of
investments................................. 3,744 7,258 4,629 8,492
------- ------- -------- --------
Net increase in net assets resulting from
operations.................................... 9,263 7,189 10,264 8,208
------- ------- -------- --------
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................... (41) (207) (241) (527)
------- ------- -------- --------
Net decrease from unit transactions............. (41) (207) (241) (527)
------- ------- -------- --------
Net increase in net assets...................... 9,222 6,982 10,023 7,681
Net assets beginning of period.................. 45,398 38,416 68,849 61,168
------- ------- -------- --------
Net assets end of period*....................... $ 54,620 $ 45,398 $ 78,872 $ 68,849
======= ======= ======== ========
Units outstanding beginning of period........... 1,526 1,533 2,800 2,823
Units issued during the period.................. 0 0 0 0
Units redeemed during the period................ (1) (7) (10) (23)
------- ------- -------- --------
Units outstanding end of period................. 1,525 1,526 2,790 2,800
======= ======= ======== ========
- ---------------
* Includes undistributed net investment income
of: $ 16,441 $ 11,032 $150,851 $145,387
</TABLE>
See notes to financial statements.
32
<PAGE> 35
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 61 to 89 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 1997
aggregated $283.
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.
33
<PAGE> 36
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1997 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of period:
Shares.................................................................. 1,936 3,827
Amount.................................................................. $ 28,336 $51,151
------- -------
Shares acquired:
Shares.................................................................. 0 0
Amount.................................................................. $ 0 $ 0
Shares received for reinvestment of dividends:
Shares.................................................................. 262 347
Amount.................................................................. $ 5,632 $ 5,793
Shares redeemed:
Shares.................................................................. (11) (32)
Amount.................................................................. $ (154) $ (399)
------- -------
Net change:
Shares.................................................................. 251 315
Amount.................................................................. $ 5,478 $ 5,394
------- -------
Shares end of period:
Shares.................................................................. 2,187 4,142
Amount.................................................................. $ 33,814 $56,545
======= =======
</TABLE>
34
<PAGE> 37
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<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)...................... $ 993,066 $ 988,805 $33,561,936 $51,402,993 $1,456,306 $134,408,375 $17,090,152
========== ========== =========== =========== ========== ============ ===========
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... $1,394,152 $1,408,722 $33,854,853 $52,245,272 $1,961,299 $134,408,375 $17,283,456
Amount due from MONY
America................. 0 0 2,412 10,810 0 1,371,089 598
Amount due from MONY
Series Fund, Inc........ 0 0 1,914 25,347 60 241,042 1,439
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total assets...... 1,394,152 1,408,722 33,859,179 52,281,429 1,961,359 136,020,506 17,285,493
---------- ---------- ----------- ----------- ---------- ------------ -----------
LIABILITIES
Amount due to MONY
America................. 0 0 1,914 25,347 60 241,042 1,439
Amount due to MONY Series
Fund, Inc............... 0 0 2,412 10,810 0 1,371,089 598
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total
liabilities..... 0 0 4,326 36,157 60 1,612,131 2,037
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets................ $1,394,152 $1,408,722 $33,854,853 $52,245,272 $1,961,299 $134,408,375 $17,283,456
========== ========== =========== =========== ========== ============ ===========
Net assets consist of:
Contractholders' net
payments.............. $ 293,352 $ 130,854 $27,683,415 $39,935,215 $ 364,225 $120,916,750 $16,313,992
Undistributed net
investment income..... 238,109 528,417 6,233,197 11,364,952 743,293 13,491,625 571,268
Accumulated net realized
gain (loss) on
investments........... 461,605 329,534 (354,676) 102,826 348,788 0 204,892
Unrealized appreciation
of investments........ 401,086 419,917 292,917 842,279 504,993 0 193,304
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets................ $1,394,152 $1,408,722 $33,854,853 $52,245,272 $1,961,299 $134,408,375 $17,283,456
========== ========== =========== =========== ========== ============ ===========
Number of units
outstanding*............ 37,885 39,645 1,911,142 2,524,036 69,905 9,049,057 1,501,166
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net asset value per unit
outstanding*............ $ 36.80 $ 35.53 $ 17.71 $ 20.70 $ 28.06 $ 14.85 $ 11.51
========== ========== =========== =========== ========== ============ ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
35
<PAGE> 38
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<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)...... $280,507,638 $169,174,022 $1,489,625,512 $ 55,006,596 $ 42,209,721
============ ============ ============== =========== ===========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................. $362,941,523 $225,236,346 $2,039,105,003 $ 64,822,027 $ 43,658,171
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............ 363,160,739 225,280,068 2,039,963,899 64,838,852 43,726,464
------------ ------------ -------------- ----------- -----------
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........................ $362,941,523 $225,236,346 $2,039,105,003 $ 64,822,027 $ 43,658,171
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $236,226,637 $145,059,042 $1,166,689,887 $ 53,065,833 $ 38,363,627
Undistributed net investment
income....................... 7,286,933 13,989,443 73,110,671 128,414 3,469,138
Accumulated net realized gain on
investments.................. 36,994,068 10,125,537 249,824,954 1,812,349 376,956
Unrealized appreciation of
investments.................. 82,433,885 56,062,324 549,479,491 9,815,431 1,448,450
------------ ------------ -------------- ----------- -----------
Net assets........................ $362,941,523 $225,236,346 $2,039,105,003 $ 64,822,027 $ 43,658,171
============ ============ ============== =========== ===========
Number of units outstanding*...... 9,624,750 6,949,178 42,010,546 4,626,875 3,226,397
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 37.71 $ 32.41 $ 48.54 $ 14.01 $ 13.53
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
36
<PAGE> 39
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<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)............... $2,582,462 $1,738,533 $1,885,731 $2,900,042 $29,536,054
========== ========== ========== ========== ===========
Investments in OCC Accumulation Trust, at
net asset value (Note 2)................. $2,582,462 $1,755,957 $3,066,184 $3,880,413 $47,183,532
Dividends receivable....................... 3,672 2,990 0 0 0
Amount due from MONY America............... 0 0 0 0 100
Amount due from OCC Accumulation Trust..... 2,614 513 943 4,604 3,346
---------- ---------- ---------- ---------- -----------
Total assets..................... 2,588,748 1,759,460 3,067,127 3,885,017 47,186,978
---------- ---------- ---------- ---------- -----------
LIABILITIES
Amount due to MONY America................. 2,614 513 943 4,604 3,346
Amount due to OCC Accumulation Trust....... 0 0 0 0 100
---------- ---------- ---------- ---------- -----------
Total liabilities................ 2,614 513 943 4,604 3,446
---------- ---------- ---------- ---------- -----------
Net assets................................. $2,586,134 $1,758,947 $3,066,184 $3,880,413 $47,183,532
========== ========== ========== ========== ===========
Net assets consist of:
Contractholders' net payments............ $2,297,440 $1,408,309 $1,356,752 $2,487,915 $19,638,364
Undistributed net investment income...... 288,694 318,149 116,587 197,494 1,707,701
Accumulated net realized gain on
investments........................... 0 15,065 412,392 214,633 8,189,989
Unrealized appreciation of investments... 0 17,424 1,180,453 980,371 17,647,478
---------- ---------- ---------- ---------- -----------
Net assets................................. $2,586,134 $1,758,947 $3,066,184 $3,880,413 $47,183,532
========== ========== ========== ========== ===========
Number of units outstanding*............... 188,864 106,986 82,834 118,558 984,939
---------- ---------- ---------- ---------- -----------
Net asset value per unit outstanding*...... $ 13.69 $ 16.44 $ 37.02 $ 32.73 $ 47.91
========== ========== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
37
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<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................ $106,179 $148,017 $ 1,895,013 $ 3,136,904 $146,889 $ 3,471,127 $ 607,853
Mortality and expense risk
charges (Note 3)............. 7,692 8,116 205,989 314,297 11,502 847,550 96,392
-------- -------- ----------- ----------- -------- ------------ ----------
Net investment income.......... 98,487 139,901 1,689,024 2,822,607 135,387 2,623,577 511,461
-------- -------- ----------- ----------- -------- ------------ ----------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales.......... 24,639 148,282 4,861,759 7,137,225 229,636 411,711,345 1,817,484
Cost of shares sold.......... 16,060 84,638 4,769,556 6,597,107 164,685 411,711,345 1,798,027
-------- -------- ----------- ----------- -------- ------------ ----------
Net realized gain on
investments.................. 8,579 63,644 92,203 540,118 64,951 0 19,457
Net increase (decrease) in
unrealized appreciation of
investments.................. 114,231 40,075 (1,101,029) (2,501,992) 58,543 0 (163,393)
-------- -------- ----------- ----------- -------- ------------ ----------
Net realized and unrealized
gain (loss) on investments... 122,810 103,719 (1,008,826) (1,961,874) 123,494 0 (143,936)
-------- -------- ----------- ----------- -------- ------------ ----------
Net increase in net assets
resulting from operations.... $221,297 $243,620 $ 680,198 $ 860,733 $258,881 $ 2,623,577 $ 367,525
======== ======== =========== =========== ======== ============ ==========
</TABLE>
See notes to financial statements.
38
<PAGE> 41
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<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........................... $ 0 $ 0 $ 0 $ 0 $1,564,813
Mortality and expense risk charges (Note
3)...................................... 1,919,957 1,154,257 11,364,555 328,208 225,665
----------- ----------- ------------ ---------- ----------
Net investment income (loss).............. (1,919,957) (1,154,257) (11,364,555) (328,208) 1,339,148
----------- ----------- ------------ ---------- ----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales..................... 34,181,491 16,092,187 254,520,956 3,689,657 3,506,979
Cost of shares sold..................... 20,455,220 13,177,157 153,854,694 2,956,953 3,382,018
----------- ----------- ------------ ---------- ----------
Net realized gain on investments.......... 13,726,271 2,915,030 100,666,262 732,704 124,961
Net increase in unrealized appreciation of
investments............................. 29,739,743 37,810,895 138,966,008 6,277,232 444,215
----------- ----------- ------------ ---------- ----------
Net realized and unrealized gain on
investments............................. 43,466,014 40,725,925 239,632,270 7,009,936 569,176
----------- ----------- ------------ ---------- ----------
Net increase in net assets resulting from
operations.............................. $41,546,057 $39,571,668 $228,267,715 $ 6,681,728 $1,908,324
=========== =========== ============ ========== ==========
</TABLE>
See notes to financial statements.
39
<PAGE> 42
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<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................................. $ 64,322 $ 58,175 $123,628 $161,545 $1,984,204
Mortality and expense risk charges (Note 3)..... 17,805 10,799 18,308 21,882 286,027
---------- --------- -------- -------- ---------
Net investment income........................... 46,517 47,376 105,320 139,663 1,698,177
---------- --------- -------- -------- ---------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales........................... 2,201,161 2,002,299 244,176 174,825 6,188,974
Cost of shares sold........................... 2,201,161 2,032,681 146,130 138,342 3,589,080
---------- --------- -------- -------- ---------
Net realized gain (loss) on investments......... 0 (30,382) 98,046 36,483 2,599,894
Net increase in unrealized appreciation of
investments................................... 0 7,315 162,138 295,350 1,541,286
---------- --------- -------- -------- ---------
Net realized and unrealized gain (loss) on
investments................................... 0 (23,067) 260,184 331,833 4,141,180
---------- --------- -------- -------- ---------
Net increase in net assets resulting from
operations.................................... $ 46,517 $ 24,309 $365,504 $471,496 $5,839,357
========== ========= ======== ======== =========
</TABLE>
See notes to financial statements.
40
<PAGE> 43
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)......................... $ 98,487 $ (12,700) $ 139,901 $ (12,569)
Net realized gain (loss) on investments.............. 8,579 92,019 63,644 81,521
Net increase (decrease) in unrealized appreciation of
investments........................................ 114,231 101,576 40,075 130,528
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting from
operations........................................... 221,297 180,895 243,620 199,480
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of units.............. 55,193 173,420 5,040 84,957
Net asset value of units redeemed or used to meet
contract obligations............................... 3,156 (208,218) (113,592) (144,895)
---------- ---------- ---------- ----------
Net increase (decrease) from unit transactions......... 58,349 (34,798) (108,552) (59,938)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets.................. 279,646 146,097 135,068 139,542
Net assets beginning of period......................... 1,114,506 968,409 1,273,654 1,134,112
---------- ---------- ---------- ----------
Net assets end of period*.............................. $1,394,152 $1,114,506 $1,408,722 $1,273,654
========== ========== ========== ==========
Units outstanding beginning of period.................. 36,033 37,368 43,089 45,391
Units issued during the period......................... 1,734 6,064 157 3,083
Units redeemed during the period....................... 118 (7,399) (3,601) (5,385)
---------- ---------- ---------- ----------
Units outstanding end of period........................ 37,885 36,033 39,645 43,089
========== ========== ========== ==========
- ---------------
* Includes undistributed net investment income of: $ 238,109 $ 139,622 $ 528,417 $ 388,516
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).........................$ 1,689,024 $ (400,003) $ 2,822,607 $ (617,564)
Net realized gain (loss) on investments.............. 92,203 (325,039) 540,118 146,065
Net increase (decrease) in unrealized appreciation of
investments........................................ (1,101,029) 1,497,596 (2,501,992) (365,732)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations........................................... 680,198 772,554 860,733 (837,231)
----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units.............. 4,261,347 7,367,531 6,787,897 14,906,160
Net asset value of units redeemed or used to meet
contract obligations............................... (4,350,683) (5,502,520) (6,435,561) (14,275,641)
----------- ----------- ----------- -----------
Net increase (decrease) from unit transactions......... (89,336) 1,865,011 352,336 630,519
----------- ----------- ----------- -----------
Net increase (decrease) in net assets.................. 590,862 2,637,565 1,213,069 (206,712)
Net assets beginning of period......................... 33,263,991 30,626,426 51,032,203 51,238,915
----------- ----------- ----------- -----------
Net assets end of period*..............................$ 33,854,853 $ 33,263,991 $ 52,245,272 $ 51,032,203
=========== =========== =========== ===========
Units outstanding beginning of period.................. 1,916,050 1,806,518 2,506,531 2,477,673
Units issued during the period......................... 244,385 435,583 337,403 761,674
Units redeemed during the period....................... (249,293) (326,051) (319,898) (732,816)
----------- ----------- ----------- -----------
Units outstanding end of period........................ 1,911,142 1,916,050 2,524,036 2,506,531
=========== =========== =========== ===========
- ---------------
* Includes undistributed net investment income of: $ 6,233,197 $ 4,544,173 $ 11,364,952 $ 8,542,345
</TABLE>
See notes to financial statements.
41
<PAGE> 44
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
-----------------------------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- ----------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------- ------------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........ $ 135,387 $ (22,534) $ 2,623,577 $ 3,697,484 $ 511,461 $ (135,450)
Net realized gain on investments.... 64,951 78,628 0 0 19,457 92,366
Net increase (decrease) in
unrealized appreciation of
investments....................... 58,543 166,348 0 0 (163,393) 360,512
---------- ---------- ------------- ------------- ----------- -----------
Net increase in net assets resulting
from operations..................... 258,881 222,442 2,623,577 3,697,484 367,525 317,428
---------- ---------- ------------- ------------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of
units............................. 27,224 108,458 413,301,211 579,470,083 4,196,903 9,252,639
Net asset value of units redeemed or
used to meet contract
obligations....................... (191,724) (270,309) (402,155,077) (553,816,098) (1,563,743) (2,761,464)
---------- ---------- ------------- ------------- ----------- -----------
Net increase (decrease) from unit
transactions........................ (164,500) (161,851) 11,146,134 25,653,985 2,633,160 6,491,175
---------- ---------- ------------- ------------- ----------- -----------
Net increase in net assets............ 94,381 60,591 13,769,711 29,351,469 3,000,685 6,808,603
Net assets beginning of period........ 1,866,918 1,806,327 120,638,664 91,287,195 14,282,771 7,474,168
---------- ---------- ------------- ------------- ----------- -----------
Net assets end of period*............. $1,961,299 $1,866,918 $ 134,408,375 $ 120,638,664 $17,283,456 $14,282,771
========== ========== ============= ============= =========== ===========
Units outstanding beginning of
period.............................. 76,353 83,511 8,278,977 6,504,679 1,269,214 679,711
Units issued during the period........ 1,091 4,729 28,086,414 40,508,568 370,086 829,627
Units redeemed during the period...... (7,539) (11,887) (27,316,334) (38,734,270) (138,134) (240,124)
---------- ---------- ------------- ------------- ----------- -----------
Units outstanding end of period....... 69,905 76,353 9,049,057 8,278,977 1,501,166 1,269,214
========== ========== ============= ============= =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 743,293 $ 607,906 $ 13,491,625 $ 10,868,048 $ 571,268 $ 59,807
</TABLE>
See notes to financial statements.
42
<PAGE> 45
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............ $(1,919,957) $ 990,518 $(1,154,257) $ 763,292
Net realized gain on investments........ 13,726,271 13,064,079 2,915,030 2,016,987
Net increase in unrealized appreciation
of investments........................ 29,739,743 28,297,136 37,810,895 11,474,221
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.............................. 41,546,057 42,351,733 39,571,668 14,254,500
------------ ------------ ------------ ------------
From unit transactions:
Net proceeds from the issuance of
units................................. 77,631,870 115,219,042 31,223,477 41,715,641
Net asset value of units redeemed or
used to meet contract obligations..... (28,706,287) (30,630,812) (13,654,537) (33,868,192)
------------ ------------ ------------ ------------
Net increase from unit transactions...... 48,925,583 84,588,230 17,568,940 7,847,449
------------ ------------ ------------ ------------
Net increase in net assets............... 90,471,640 126,939,963 57,140,608 22,101,949
Net assets beginning of period........... 272,469,883 145,529,920 168,095,738 145,993,789
------------ ------------ ------------ ------------
Net assets end of period*................ $362,941,523 $272,469,883 $225,236,346 $168,095,738
============ ============ ============ ============
Units outstanding beginning of period.... 8,212,227 5,426,511 6,346,453 6,055,472
Units issued during the period........... 2,262,666 3,827,209 1,091,597 1,644,107
Units redeemed during the period......... (850,143) (1,041,493) (488,872) (1,353,126)
------------ ------------ ------------ ------------
Units outstanding end of period.......... 9,624,750 8,212,227 6,949,178 6,346,453
============ ============ ============ ============
- ---------------
* Includes undistributed net investment
income of: $ 7,286,933 $ 9,206,890 $13,989,443 $15,143,700
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-------------------------------
MANAGED
SUBACCOUNT
-----------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
------------- --------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)............ $ (11,364,555) $ (1,088,954)
Net realized gain on investments........ 100,666,262 78,226,876
Net increase in unrealized appreciation
of investments........................ 138,966,008 198,383,114
--------------- ---------------
Net increase in net assets resulting from
operations.............................. 228,267,715 275,521,036
--------------- ---------------
From unit transactions:
Net proceeds from the issuance of
units................................. 353,025,533 496,311,902
Net asset value of units redeemed or
used to meet contract obligations..... (231,098,255) (192,035,547)
--------------- ---------------
Net increase from unit transactions...... 121,927,278 304,276,355
--------------- ---------------
Net increase in net assets............... 350,194,993 579,797,391
Net assets beginning of period........... 1,688,910,010 1,109,112,619
--------------- ---------------
Net assets end of period*................ $2,039,105,003 $1,688,910,010
=============== ===============
Units outstanding beginning of period.... 39,371,381 31,540,233
Units issued during the period........... 7,944,144 12,880,690
Units redeemed during the period......... (5,304,979) (5,049,542)
--------------- ---------------
Units outstanding end of period.......... 42,010,546 39,371,381
=============== ===============
- ---------------
* Includes undistributed net investment
income of: $ 73,110,671 $ 84,475,226
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............ $ (328,208) $ (223,776) $ 1,339,148 $ 1,605,300
Net realized gain on investments........ 732,704 891,767 124,961 153,762
Net increase in unrealized appreciation
of investments........................ 6,277,232 2,753,189 444,215 860,925
----------- ----------- ----------- -----------
Net increase in net assets resulting from
operations.............................. 6,681,728 3,421,180 1,908,324 2,619,987
----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of
units................................. 15,975,669 28,954,972 14,406,663 17,522,375
Net asset value of units redeemed or
used to meet contract obligations..... (2,915,634) (3,642,450) (3,072,483) (3,512,778)
----------- ----------- ----------- -----------
Net increase from unit transactions...... 13,060,035 25,312,522 11,334,180 14,009,597
----------- ----------- ----------- -----------
Net increase in net assets............... 19,741,763 28,733,702 13,242,504 16,629,584
Net assets beginning of period........... 45,080,264 16,346,562 30,415,667 13,786,083
----------- ----------- ----------- -----------
Net assets end of period*................ $ 64,822,027 $45,080,264 $43,658,171 $30,415,667
=========== =========== =========== ===========
Units outstanding beginning of period.... 3,610,923 1,456,982 2,361,710 1,194,315
Units issued during the period........... 1,243,289 2,462,266 1,099,808 1,460,685
Units redeemed during the period......... (227,337) (308,325) (235,121) (293,290)
----------- ----------- ----------- -----------
Units outstanding end of period.......... 4,626,875 3,610,923 3,226,397 2,361,710
=========== =========== =========== ===========
- ---------------
* Includes undistributed net investment
income of: $ 128,414 $ 456,622 $ 3,469,138 $ 2,129,990
</TABLE>
See notes to financial statements.
43
<PAGE> 46
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------
MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 46,517 $ 93,564 $ 47,376 $ 118,511
Net realized gain (loss) on
investments............................ 0 0 (30,382) 7,592
Net increase (decrease) in unrealized
appreciation of investments............ 0 0 7,315 (105,165)
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations............................... 46,517 93,564 24,309 20,938
------------ ------------ ------------ ------------
From unit transactions:
Net proceeds from the issuance of
units.................................. 1,101,887 4,333,584 191,323 85,477
Net asset value of units redeemed or used
to meet contract obligations........... (2,176,130) (4,350,827) (385,480) (250,849)
------------ ------------ ------------ ------------
Net decrease from unit transactions....... (1,074,243) (17,243) (194,157) (165,372)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets..... (1,027,726) 76,321 (169,848) (144,434)
Net assets beginning of period............ 3,613,860 3,537,539 1,928,795 2,073,229
------------ ------------ ------------ ------------
Net assets end of period*................. $ 2,586,134 $ 3,613,860 $1,758,947 1,928,795
============== ============== ============== ==============
Units outstanding beginning of period..... 268,258 271,019 118,986 129,078
Units issued during the period............ 80,972 326,685 11,754 5,293
Units redeemed during the period.......... (160,366) (329,446) (23,754) (15,385)
------------ ------------ ------------ ------------
Units outstanding end of period........... 188,864 268,258 106,986 118,986
============== ============== ============== ==============
- ---------------
* Includes undistributed net investment
income of:.............................. $ 288,694 $ 242,177 $ 318,149 $ 270,773
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------
EQUITY
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
------------- ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income.................... $ 105,320 $ 43,218
Net realized gain (loss) on
investments............................ 98,046 201,716
Net increase (decrease) in unrealized
appreciation of investments............ 162,138 300,028
------------- ------------
Net increase in net assets resulting from
operations............................... 365,504 544,962
------------- ------------
From unit transactions:
Net proceeds from the issuance of
units.................................. 51,977 90,651
Net asset value of units redeemed or used
to meet contract obligations........... (225,835) (615,503)
------------- ------------
Net decrease from unit transactions....... (173,858) (524,852)
------------- ------------
Net increase (decrease) in net assets..... 191,646 20,110
Net assets beginning of period............ 2,874,538 2,854,428
------------- ------------
Net assets end of period*................. $ 3,066,184 $2,874,538
============== ==============
Units outstanding beginning of period..... 87,730 106,172
Units issued during the period............ 1,533 2,767
Units redeemed during the period.......... (6,429) (21,209)
------------- ------------
Units outstanding end of period........... 82,834 87,730
============== ==============
- ---------------
* Includes undistributed net investment
income of:.............................. $ 116,587 $ 11,267
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 139,663 $ 94,164 $ 1,698,177 $ 427,532
Net realized gain (loss) on
investments............................ 36,483 124,066 2,599,894 4,226,402
Net increase (decrease) in unrealized
appreciation of investments............ 295,350 287,148 1,541,286 4,119,101
------------- ------------ ------------ ------------
Net increase in net assets resulting from
operations............................... 471,496 505,378 5,839,357 8,773,035
------------- ------------ ------------ ------------
From unit transactions:
Net proceeds from the issuance of
units.................................. 109,756 454,923 1,342,904 4,110,996
Net asset value of units redeemed or used
to meet contract obligations........... (152,936) (857,279) (5,853,674) (11,872,383)
------------- ------------ ------------ ------------
Net decrease from unit transactions....... (43,180) (402,356) (4,510,770) (7,761,387)
------------- ------------ ------------ ------------
Net increase (decrease) in net assets..... 428,316 103,022 1,328,587 1,011,648
Net assets beginning of period............ 3,452,097 3,349,075 45,854,945 44,843,297
------------- ------------ ------------ ------------
Net assets end of period*................. $ 3,880,413 $3,452,097 $47,183,532 $45,854,945
============== ============== ============== ==============
Units outstanding beginning of period..... 120,183 136,744 1,084,412 1,286,294
Units issued during the period............ 3,627 17,388 30,693 113,806
Units redeemed during the period.......... (5,252) (33,949) (130,166) (315,688)
------------- ------------ ------------ ------------
Units outstanding end of period........... 118,558 120,183 984,939 1,084,412
============== ============== ============== ==============
- ---------------
* Includes undistributed net investment
income of:.............................. $ 197,494 $ 57,831 $ 1,707,701 $ 9,524
</TABLE>
See notes to financial statements.
44
<PAGE> 47
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account A (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support flexible payment variable annuity policies.
These policies are issued by MONY America, which is a wholly-owned subsidiary of
The Mutual Life Insurance Company of New York ("MONY"). MONY America is
currently taxed as a life insurance company and will include the Variable
Account's operations in its tax return. MONY America does not expect, based upon
current tax law, to incur any income tax burden upon the earnings or realized
capital gains attributable to the Variable Account. Based on this expectation,
no charges are currently being deducted from the Variable Account for federal
income tax purposes.
There are currently seventeen subaccounts within the Variable Account, and
each invests only in a corresponding portfolio of the MONY Series Fund, Inc.
(the "Fund"), the Enterprise Accumulation Trust ("Enterprise") or the 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 61 to 89; 91 to 119; and 121
to 142; 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 1997 was $1,118,293.
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.
45
<PAGE> 48
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investment In MONY Series Fund, Inc. at cost, at June 30, 1997 (unaudited)
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
period:
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
--------- --------- ---------- ------------ ---------- ------------- -----------
Shares acquired:
Shares.................. 2,510 1,317 428,516 585,798 2,932 422,009,929 415,945
Amount.................. $ 75,296 $ 31,614 $ 4,566,434 $ 7,175,264 $ 53,634 $ 422,009,929 $ 4,354,252
Shares received for
reinvestment of
dividends:
Shares.................. 3,763 6,884 183,803 268,111 8,796 3,471,127 59,593
Amount.................. $ 106,179 $ 148,017 $ 1,895,013 $ 3,136,904 $ 146,889 $ 3,471,127 $ 607,853
Shares redeemed:
Shares.................. (787) (6,121) (453,501) (580,796) (12,494) (411,711,345) (173,179)
Amount.................. $ (16,060) $ (84,638) $(4,769,556) $(6,597,107) $ (164,685) $(411,711,345) $(1,798,027)
--------- --------- ---------- ------------ ---------- ------------- -----------
Net change:
Shares.................. 5,486 2,080 158,818 273,113 (766) 13,769,711 302,359
Amount.................. $ 165,415 $ 94,993 $ 1,691,891 $ 3,715,061 $ 35,838 $ 13,769,711 $ 3,164,078
--------- --------- ---------- ------------ ---------- ------------- -----------
Shares end of period:
Shares.................. 42,183 56,416 3,193,853 4,247,583 103,009 134,408,375 1,652,338
Amount.................. $ 993,066 $ 988,805 $33,561,936 $51,402,993 $ 1,456,306 $ 134,408,375 $17,090,152
========= ========= ========== ============ ========== ============= ===========
</TABLE>
46
<PAGE> 49
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investment in Enterprise Accumulation Trust at cost, at June 30, 1997
(unaudited) 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 period:
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
------------ ------------ -------------- ----------- -----------
Shares acquired:
Shares................................... 2,708,842 1,482,756 1,022,570 2,628,056 2,658,901
Amount................................... $ 81,187,117 $ 32,506,870 $ 365,083,679 $16,421,484 $14,615,494
Shares received for reinvestment of
dividends:
Shares................................... 0 0 0 0 283,650
Amount................................... $ 0 $ 0 $ 0 $ 0 $ 1,564,813
Shares redeemed:
Shares................................... (115,175) (746,822) (7,245,948) (588,559) (638,590)
Amount................................... $(20,455,220) $(13,177,157) $ (153,854,694) $(2,956,953) $(3,382,018)
------------ ------------ -------------- ----------- -----------
Net change:
Shares................................... 2,593,667 735,934 (6,223,378) 2,039,497 2,303,961
Amount................................... $ 60,731,897 $ 19,329,713 $ 211,228,985 $13,464,531 $12,798,289
------------ ------------ -------------- ----------- -----------
Shares end of period:
Shares................................... 12,034,758 9,049,274 43,001,631 9,490,780 7,824,046
Amount................................... $280,507,638 $169,174,022 $1,489,625,512 $55,006,596 $42,209,721
============ ============ ============== =========== ===========
</TABLE>
Investment in OCC Accumulation Trust at cost, at June 30, 1997 (unaudited)
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 period:
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
----------- ---------- ---------- ---------- -----------
Shares acquired:
Shares........................................ 1,109,113 175,757 1,677 4,727 37,800
Amount........................................ $ 1,109,113 $ 1,797,343 $ 52,010 $ 109,763 $ 1,392,177
Shares received for reinvestment of dividends:
Shares........................................ 60,650 5,665 4,135 7,414 54,995
Amount........................................ $ 60,650 $ 55,185 $ 123,628 $ 161,545 $ 1,984,204
Shares redeemed:
Shares........................................ (2,201,161) (214,467) (7,869) (7,910) (164,637)
Amount........................................ $(2,201,161) $(2,032,681) $ (146,130) $ (138,342) $(3,589,080)
----------- ---------- ---------- ---------- -----------
Net change:
Shares........................................ (1,031,398) (33,045) (2,057) 4,231 (71,842)
Amount........................................ $(1,031,398) $ (180,153) $ 29,508 $ 132,966 $ (212,699)
----------- ---------- ---------- ---------- -----------
Shares end of period:
Shares........................................ 2,582,462 169,987 93,538 156,911 1,194,519
Amount........................................ $ 2,582,462 $ 1,738,533 $1,885,731 $2,900,042 $29,536,054
=========== ========== ========== ========== ===========
</TABLE>
47
<PAGE> 50
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<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).... $167,083 $207,398 $6,757,834 $10,737,241 $127,530 $18,320,012 $2,195,291
======== ======== ========== =========== ======== =========== ==========
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)............................ $290,236 $322,532 $6,789,789 $11,030,599 $152,337 $18,320,012 $2,227,200
Amount due from MONY............ 0 0 28 1,457 0 345,856 72
Amount due from MONY Series
Fund, Inc. ................... 0 0 210 245 0 52,665 5
-------- -------- ---------- ----------- -------- ----------- ----------
Total assets........... 290,236 322,532 6,790,027 11,032,301 152,337 18,718,533 2,227,277
-------- -------- ---------- ----------- -------- ----------- ----------
LIABILITIES
Amount due to MONY.............. 0 0 210 245 0 52,665 5
Amount due to MONY Series Fund,
Inc. ......................... 0 0 28 1,457 0 345,856 72
-------- -------- ---------- ----------- -------- ----------- ----------
Total liabilities...... 0 0 238 1,702 0 398,521 77
-------- -------- ---------- ----------- -------- ----------- ----------
Net assets...................... $290,236 $322,532 $6,789,789 $11,030,599 $152,337 $18,320,012 $2,227,200
======== ======== ========== =========== ======== =========== ==========
Net assets consist of:
Contractholders' net
payments.................... $ 60,222 $ 16,894 $5,114,130 $ 7,696,088 $(83,739) $15,837,608 $2,112,806
Undistributed net investment
income...................... 50,941 129,353 1,592,767 2,761,238 107,410 2,482,404 68,454
Accumulated net realized gain
on investments.............. 55,920 61,151 50,937 279,915 103,859 0 14,032
Unrealized appreciation of
investments................. 123,153 115,134 31,955 293,358 24,807 0 31,908
-------- -------- ---------- ----------- -------- ----------- ----------
Net assets...................... $290,236 $322,532 $6,789,789 $11,030,599 $152,337 $18,320,012 $2,227,200
======== ======== ========== =========== ======== =========== ==========
Number of units outstanding*.... 7,865 9,384 390,867 528,914 5,598 1,235,835 194,448
-------- -------- ---------- ----------- -------- ----------- ----------
Net asset value per unit
outstanding*.................. $ 36.90 $ 34.37 $ 17.37 $ 20.86 $ 27.21 $ 14.82 $ 11.45
======== ======== ========== =========== ======== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
48
<PAGE> 51
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<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).............. $36,894,658 $21,640,668 $190,315,388 $ 7,088,499 $4,816,237
=========== =========== ============ ========== ==========
Investments in Enterprise Accumulation
Trust, at net asset value (Note 2)...... $48,645,605 $28,874,427 $265,898,200 $ 8,340,956 $4,954,777
Amount due from MONY...................... 3,535 2,573 17,367 193 127
Amount due from Enterprise Accumulation
Trust................................... 74,174 34,602 185,472 833 226
----------- ----------- ------------ ---------- ----------
Total assets.................... 48,723,314 28,911,602 266,101,039 8,341,982 4,955,130
----------- ----------- ------------ ---------- ----------
LIABILITIES
Amount due to MONY........................ 74,174 34,602 185,472 833 226
Amount due to Enterprise Accumulation
Trust................................... 3,535 2,573 17,367 193 127
----------- ----------- ------------ ---------- ----------
Total liabilities............... 77,709 37,175 202,839 1,026 353
----------- ----------- ------------ ---------- ----------
Net assets................................ $48,645,605 $28,874,427 $265,898,200 $ 8,340,956 $4,954,777
=========== =========== ============ ========== ==========
Net assets consist of:
Contractholders' net payments........... $30,099,327 $18,312,961 $143,945,912 $ 6,870,370 $4,447,840
Undistributed net investment income..... 1,208,801 1,784,320 11,115,536 10,551 328,371
Accumulated net realized gain on
investments.......................... 5,586,530 1,543,387 35,253,940 207,578 40,026
Unrealized appreciation of
investments.......................... 11,750,947 7,233,759 75,582,812 1,252,457 138,540
----------- ----------- ------------ ---------- ----------
Net assets................................ $48,645,605 $28,874,427 $265,898,200 $ 8,340,956 $4,954,777
=========== =========== ============ ========== ==========
Number of units outstanding*.............. 1,289,854 892,878 5,480,383 595,455 365,578
----------- ----------- ------------ ---------- ----------
Net asset value per unit outstanding*..... $ 37.71 $ 32.34 $ 48.52 $ 14.01 $ 13.55
=========== =========== ============ ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
49
<PAGE> 52
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<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)..................... $495,806 $551,095 $240,173 $226,545 $ 7,351,801
======== ======== ======== ======== ===========
Investments in OCC Accumulation Trust, at net
asset value (Note 2)........................... $495,806 $556,967 $382,938 $313,689 $12,310,709
Dividends receivable............................. 706 961 0 0 0
Amount due from MONY Series Fund, Inc. .......... 0 0 8 5 127,238
-------- -------- -------- -------- -----------
Total assets........................... 496,512 557,928 382,946 313,694 12,437,947
-------- -------- -------- -------- -----------
LIABILITIES
Amount due to MONY Series Fund, Inc. ............ 0 0 8 5 127,238
-------- -------- -------- -------- -----------
Net assets....................................... $496,512 $557,928 $382,938 $313,689 $12,310,709
======== ======== ======== ======== ===========
Net assets consist of:
Contractholders' net payments.................. $453,484 $448,583 $197,590 $163,432 $ 5,517,821
Undistributed net investment income............ 43,028 109,854 14,561 25,613 457,627
Accumulated net realized gain (loss) on
investments................................. 0 (6,380) 28,022 37,500 1,376,353
Unrealized appreciation of investments......... 0 5,871 142,765 87,144 4,958,908
-------- -------- -------- -------- -----------
Net assets....................................... $496,512 $557,928 $382,938 $313,689 $12,310,709
======== ======== ======== ======== ===========
Number of units outstanding*..................... 36,369 33,946 10,344 9,606 257,077
-------- -------- -------- -------- -----------
Net asset value per unit outstanding*............ $ 13.65 $ 16.44 $ 37.02 $ 32.65 $ 47.89
======== ======== ======== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
50
<PAGE> 53
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<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................... $ 22,967 $ 33,575 $ 370,421 $ 650,293 $ 11,395 $ 493,891 $ 73,370
Mortality and expense risk charges
(Note 3)........................ 1,650 1,825 41,045 65,093 997 120,616 12,065
------- ------- -------- -------- ------- -------- -------
Net investment income............. 21,317 31,750 329,376 585,200 10,398 373,275 61,305
------- ------- -------- -------- ------- -------- -------
Realized and unrealized gain
(loss) on investments (Note 2):
Proceeds from sales............. 5,433 6,571 1,304,753 821,090 51,797 49,940,184 173,630
Cost of shares sold............. 2,291 3,940 1,259,597 803,205 36,536 49,940,184 172,732
------- ------- -------- -------- ------- -------- -------
Net realized gain on
investments..................... 3,142 2,631 45,156 17,885 15,261 0 898
Net increase (decrease) in
unrealized appreciation of
investments..................... 22,171 20,288 (239,053) (416,198) (3,333) 0 (15,670)
------- ------- -------- -------- ------- -------- -------
Net realized and unrealized gain
(loss) on investments........... 25,313 22,919 (193,897) (398,313) 11,928 0 (14,772)
------- ------- -------- -------- ------- -------- -------
Net increase in net assets
resulting from operations....... $ 46,630 $ 54,669 $ 135,479 $ 186,887 $ 22,326 $ 373,275 $ 46,533
======= ======= ======== ======== ======= ======== =======
</TABLE>
See notes to financial statements.
51
<PAGE> 54
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<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.......................... $ 0 $ 0 $ 0 $ 0 $168,155
Mortality and expense risk charges (Note
3)..................................... 257,410 150,465 1,486,600 41,967 24,247
---------- ---------- ----------- -------- --------
Net investment income (loss)............. (257,410) (150,465) (1,486,600) (41,967) 143,908
---------- ---------- ----------- -------- --------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.................... 4,605,762 2,090,803 27,590,577 469,504 506,857
Cost of shares sold.................... 2,739,625 1,762,230 16,529,101 373,165 487,095
---------- ---------- ----------- -------- --------
Net realized gain on investments......... 1,866,137 328,573 11,061,476 96,339 19,762
Net increase in unrealized appreciation
of investments......................... 3,943,921 4,938,756 20,239,529 790,760 41,691
---------- ---------- ----------- -------- --------
Net realized and unrealized gain on
investments............................ 5,810,058 5,267,329 31,301,005 887,099 61,453
---------- ---------- ----------- -------- --------
Net increase in net assets resulting from
operations............................. $5,552,648 $5,116,864 $29,814,405 $ 845,132 $205,361
========== ========== =========== ======== ========
</TABLE>
See notes to financial statements.
52
<PAGE> 55
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<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.............................. $ 10,676 $ 18,737 $ 15,704 $ 15,785 $ 534,860
Mortality and expense risk charges (Note
3)......................................... 2,936 3,518 2,378 1,924 76,265
------- -------- ------- ------- ----------
Net investment income........................ 7,740 15,219 13,326 13,861 458,595
------- -------- ------- ------- ----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales........................ 6,202 600,529 37,804 67,773 1,444,123
Cost of shares sold........................ 6,202 610,206 21,588 54,239 858,152
------- -------- ------- ------- ----------
Net realized gain (loss) on investments...... 0 (9,677) 16,216 13,534 585,971
Net increase in unrealized appreciation of
investments................................ 0 2,676 18,379 11,607 454,283
------- -------- ------- ------- ----------
Net realized and unrealized gain (loss) on
investments................................ 0 (7,001) 34,595 25,141 1,040,254
------- -------- ------- ------- ----------
Net increase in net assets resulting from
operations................................. $ 7,740 $ 8,218 $ 47,921 $ 39,002 $1,498,849
======= ======== ======= ======= ==========
</TABLE>
See notes to financial statements.
53
<PAGE> 56
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)......................... $ 21,317 $ (2,869) $ 31,750 $ (2,755)
Net realized gain (loss) on investments.............. 3,142 3,240 2,631 10,024
Net increase (decrease) in unrealized appreciation of
investments........................................ 22,171 40,185 20,288 35,971
-------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations........................................... 46,630 40,556 54,669 43,240
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.............. 0 0 2,002 521
Net asset value of units redeemed or used to meet
contract obligations............................... (3,783) (3,203) (4,746) (22,959)
-------- -------- -------- --------
Net increase (decrease) from unit transactions......... (3,783) (3,203) (2,744) (22,438)
-------- -------- -------- --------
Net increase (decrease) in net assets.................. 42,847 37,353 51,925 20,802
Net assets beginning of period......................... 247,389 210,036 270,607 249,805
-------- -------- -------- --------
Net assets end of period*.............................. $290,236 $247,389 $322,532 $270,607
======== ======== ======== ========
Units outstanding beginning of period.................. 7,976 8,091 9,465 10,336
Units issued during the period......................... 0 0 68 20
Units redeemed during the period....................... (111) (115) (149) (891)
-------- -------- -------- --------
Units outstanding end of period........................ 7,865 7,976 9,384 9,465
======== ======== ======== ========
- ---------------
* Includes undistributed net investment income of: $ 50,941 $ 29,624 $129,353 $ 97,603
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)......................... $ 329,376 $ (83,249) $ 585,200 $ (124,623)
Net realized gain (loss) on investments.............. 45,156 (66,500) 17,885 (113,978)
Net increase (decrease) in unrealized appreciation of
investments........................................ (239,053) 287,901 (416,198) 58,274
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations........................................... 135,479 138,152 186,887 (180,327)
----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units.............. 1,403,194 2,126,818 1,144,351 2,785,899
Net asset value of units redeemed or used to meet
contract obligations............................... (1,240,441) (2,394,742) (634,681) (2,589,305)
----------- ----------- ----------- -----------
Net increase (decrease) from unit transactions......... 162,753 (267,924) 509,670 196,594
----------- ----------- ----------- -----------
Net increase (decrease) in net assets.................. 298,232 (129,772) 696,557 16,267
Net assets beginning of period......................... 6,491,557 6,621,329 10,334,042 10,317,775
----------- ----------- ----------- -----------
Net assets end of period*.............................. $ 6,789,789 $ 6,491,557 $ 11,030,599 $ 10,334,042
=========== =========== =========== ===========
Units outstanding beginning of period.................. 381,313 398,283 503,775 495,169
Units issued during the period......................... 82,149 128,432 56,230 139,629
Units redeemed during the period....................... (72,595) (145,402) (31,091) (131,023)
----------- ----------- ----------- -----------
Units outstanding end of period........................ 390,867 381,313 528,914 503,775
=========== =========== =========== ===========
- ---------------
* Includes undistributed net investment income of: $ 1,592,767 $ 1,263,391 $ 2,761,238 $ 2,176,038
</TABLE>
See notes to financial statements.
54
<PAGE> 57
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
(CONTINUED)
----------------------------
DIVERSIFIED
SUBACCOUNT
----------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)............................................... $ 10,398 $ (3,484)
Net realized gain (loss) on investments.................................... 15,261 41,789
Net increase (decrease) in unrealized appreciation of investments.......... (3,333) (9,570)
-------- ---------
Net increase in net assets resulting from operations......................... 22,326 28,735
-------- ---------
From unit transactions:
Net proceeds from the issuance of units.................................... 687 77,280
Net asset value of units redeemed or used to meet contract obligations..... (50,682) (180,942)
-------- ---------
Net increase (decrease) from unit transactions............................... (49,995) (103,662)
-------- ---------
Net increase (decrease) in net assets........................................ (27,669) (74,927)
Net assets beginning of period............................................... 180,006 254,933
-------- ---------
Net assets end of period*.................................................... $152,337 $ 180,006
======== =========
Units outstanding beginning of period........................................ 7,590 12,152
Units issued during the period............................................... 34 3,635
Units redeemed during the period............................................. (2,026) (8,197)
-------- ---------
Units outstanding end of period.............................................. 5,598 7,590
======== =========
- ---------------
* Includes undistributed net investment income of: $107,410 $ 97,012
<CAPTION>
MONY SERIES FUND, INC.
(CONTINUED)
----------------------------
MONEY MARKET
SUBACCOUNT
----------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
------------- ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)............................................... $ 373,275 $ 648,275
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......................... 373,275 648,275
------------ ------------
From unit transactions:
Net proceeds from the issuance of units.................................... 45,784,073 71,884,991
Net asset value of units redeemed or used to meet contract obligations..... (47,547,001) (70,019,648)
------------ ------------
Net increase (decrease) from unit transactions............................... (1,762,928) 1,865,343
------------ ------------
Net increase (decrease) in net assets........................................ (1,389,653) 2,513,618
Net assets beginning of period............................................... 19,709,665 17,196,047
------------ ------------
Net assets end of period*.................................................... $ 18,320,012 $ 19,709,665
============ ============
Units outstanding beginning of period........................................ 1,355,274 1,227,811
Units issued during the period............................................... 3,117,246 5,032,568
Units redeemed during the period............................................. (3,236,685) (4,905,105)
------------ ------------
Units outstanding end of period.............................................. 1,235,835 1,355,274
============ ============
- ---------------
* Includes undistributed net investment income of: $ 2,482,404 $ 2,109,129
<CAPTION>
MONY SERIES FUND, INC.
(CONTINUED)
----------------------------
GOVERNMENT
SECURITIES
SUBACCOUNT
----------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
------------- ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)............................................... $ 61,305 $ (17,809)
Net realized gain (loss) on investments.................................... 898 (462)
Net increase (decrease) in unrealized appreciation of investments.......... (15,670) 57,310
---------- ----------
Net increase in net assets resulting from operations......................... 46,533 39,039
---------- ----------
From unit transactions:
Net proceeds from the issuance of units.................................... 523,446 1,419,641
Net asset value of units redeemed or used to meet contract obligations..... (157,549) (558,126)
---------- ----------
Net increase (decrease) from unit transactions............................... 365,897 861,515
---------- ----------
Net increase (decrease) in net assets........................................ 412,430 900,554
Net assets beginning of period............................................... 1,814,770 914,216
---------- ----------
Net assets end of period*.................................................... $ 2,227,200 $1,814,770
========== ==========
Units outstanding beginning of period........................................ 162,102 83,571
Units issued during the period............................................... 46,313 129,566
Units redeemed during the period............................................. (13,967) (51,035)
---------- ----------
Units outstanding end of period.............................................. 194,448 162,102
========== ==========
- ---------------
* Includes undistributed net investment income of: $ 68,454 $ 7,149
</TABLE>
See notes to financial statements.
55
<PAGE> 58
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)................... $ (257,410) $ 127,192 $ (150,465) $ 98,655 $ (1,486,600) $ (159,652)
Net realized gain on
investments.............. 1,866,137 1,845,892 328,573 322,780 11,061,476 10,600,967
Net increase in unrealized
appreciation of
investments.............. 3,943,921 3,936,924 4,938,756 1,442,596 20,239,529 25,728,772
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets
resulting from
operations................. 5,552,648 5,910,008 5,116,864 1,864,031 29,814,405 36,170,087
----------- ----------- ----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the
issuance of units........ 9,496,524 13,430,622 3,167,851 5,146,904 39,355,889 59,678,401
Net asset value of units
redeemed or used to meet
contract obligations..... (3,670,804) (3,493,043) (1,550,665) (4,293,528) (24,121,819) (24,531,771)
----------- ----------- ----------- ----------- ------------ ------------
Net increase from unit
transactions............... 5,825,720 9,937,579 1,617,186 853,376 15,234,070 35,146,630
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets... 11,378,368 15,847,587 6,734,050 2,717,407 45,048,475 71,316,717
Net assets beginning of
period..................... 37,267,237 21,419,650 22,140,377 19,422,970 220,849,725 149,533,008
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of period*.... $ 48,645,605 $ 37,267,237 $ 28,874,427 $ 22,140,377 $265,898,200 $220,849,725
=========== =========== =========== =========== ============ ============
Units outstanding beginning
of period.................. 1,123,086 798,552 837,807 807,452 5,150,485 4,253,824
Units issued during the
period..................... 274,734 441,702 110,519 202,925 880,784 1,537,736
Units redeemed during the
period..................... (107,966) (117,168) (55,448) (172,570) (550,886) (641,075)
----------- ----------- ----------- ----------- ------------ ------------
Units outstanding end of
period..................... 1,289,854 1,123,086 892,878 837,807 5,480,383 5,150,485
=========== =========== =========== =========== ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 1,208,801 $ 1,466,211 $ 1,784,320 $ 1,934,785 $ 11,115,536 $ 12,602,136
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)................... $ (41,967) $ (28,360) $ 143,908 $ 140,903
Net realized gain on
investments.............. 96,339 94,099 19,762 10,750
Net increase in unrealized
appreciation of
investments.............. 790,760 382,690 41,691 84,387
---------- ---------- ---------- ----------
Net increase in net assets
resulting from
operations................. 845,132 448,429 205,361 236,040
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the
issuance of units........ 1,827,413 3,893,317 1,818,810 2,209,079
Net asset value of units
redeemed or used to meet
contract obligations..... (232,707) (314,849) (259,338) (323,040)
---------- ---------- ---------- ----------
Net increase from unit
transactions............... 1,594,706 3,578,468 1,559,472 1,886,039
---------- ---------- ---------- ----------
Net increase in net assets... 2,439,838 4,026,897 1,764,833 2,122,079
Net assets beginning of
period..................... 5,901,118 1,874,221 3,189,944 1,067,865
---------- ---------- ---------- ----------
Net assets end of period*.... $ 8,340,956 $5,901,118 $4,954,777 $3,189,944
========== ========== ========== ==========
Units outstanding beginning
of period.................. 472,752 167,074 247,295 92,358
Units issued during the
period..................... 141,158 332,329 138,031 182,283
Units redeemed during the
period..................... (18,455) (26,651) (19,748) (27,346)
---------- ---------- ---------- ----------
Units outstanding end of
period..................... 595,455 472,752 365,578 247,295
========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 10,551 $ 52,518 $ 328,371 $ 184,463
</TABLE>
See notes to financial statements.
56
<PAGE> 59
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
--------------------------------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........ $ 7,740 $ 14,005 $ 15,219 $ 42,462 $ 13,326 $ 4,186
Net realized gain (loss) on
investments................ 0 0 (9,677) (186) 16,216 7,734
Net increase (decrease) in
unrealized appreciation of
investments................ 0 0 2,676 (44,748) 18,379 54,162
-------- -------- -------- --------- -------- --------
Net increase (decrease) in net
assets resulting from
operations................... 7,740 14,005 8,218 (2,472) 47,921 66,082
-------- -------- -------- --------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 48,253 19,197 10,982 15,468 0 22,903
Net asset value of units
redeemed or used to meet
contract obligations....... (3,266) (27,513) (30,392) (276,029) (35,426) (12,801)
-------- -------- -------- --------- -------- --------
Net increase (decrease) from
unit transactions............ 44,987 (8,316) (19,410) (260,561) (35,426) 10,102
-------- -------- -------- --------- -------- --------
Net increase (decrease) in net
assets....................... 52,727 5,689 (11,192) (263,033) 12,495 76,184
Net assets beginning of
period....................... 443,785 438,096 569,120 832,153 370,443 294,259
-------- -------- -------- --------- -------- --------
Net assets end of period*...... $496,512 $443,785 $557,928 $ 569,120 $382,938 $370,443
======== ======== ======== ========= ======== ========
Units outstanding beginning of
period....................... 33,041 33,665 35,119 51,825 11,304 10,944
Units issued during the
period....................... 3,568 1,448 680 650 0 894
Units redeemed during the
period....................... (240) (2,072) (1,853) (17,356) (960) (534)
-------- -------- -------- --------- -------- --------
Units outstanding end of
period....................... 36,369 33,041 33,946 35,119 10,344 11,304
======== ======== ======== ========= ======== ========
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 43,028 $ 35,288 $109,854 $ 94,635 $ 14,561 $ 1,235
<CAPTION>
OCC ACCUMULATION TRUST
------------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income........ $ 13,861 $ 15,959 $ 458,595 $ 97,936
Net realized gain (loss) on
investments................ 13,534 20,195 585,971 695,252
Net increase (decrease) in
unrealized appreciation of
investments................ 11,607 17,666 454,283 1,520,888
-------- --------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations................... 39,002 53,820 1,498,849 2,314,076
-------- --------- ----------- -----------
From unit transactions:
Net proceeds from the
issuance of units.......... 0 10,778 96,245 301,963
Net asset value of units
redeemed or used to meet
contract obligations....... (65,849) (174,121) (1,328,113) (1,630,402)
-------- --------- ----------- -----------
Net increase (decrease) from
unit transactions............ (65,849) (163,343) (1,231,868) (1,328,439)
-------- --------- ----------- -----------
Net increase (decrease) in net
assets....................... (26,847) (109,523) 266,981 985,637
Net assets beginning of
period....................... 340,536 450,059 12,043,728 11,058,091
-------- --------- ----------- -----------
Net assets end of period*...... $ 313,689 $ 340,536 $ 12,310,709 $ 12,043,728
======== ========= =========== ===========
Units outstanding beginning of
period....................... 11,883 18,419 284,927 317,313
Units issued during the
period....................... 0 484 2,109 8,688
Units redeemed during the
period....................... (2,277) (7,020) (29,959) (41,074)
-------- --------- ----------- -----------
Units outstanding end of
period....................... 9,606 11,883 257,077 284,927
======== ========= =========== ===========
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 25,613 $ 11,752 $ 457,627 $ (968)
</TABLE>
See notes to financial statements.
57
<PAGE> 60
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 61 to 89; 91 to 119; and 121
to 142; 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 Portfolio,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Funds. For the Money Market Portfolio,
the net asset values are based on the amortized cost of the securities held
which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY 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 1997 was $102,124.
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.
58
<PAGE> 61
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1997 (unaudited)
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 period:
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
-------- -------- ----------- ---------- --------- ------------ -----------
Shares acquired:
Shares.................... 0 95 134,396 102,894 48 48,056,640 50,711
Amount.................... $ 0 $ 2,002 $ 1,426,461 $ 1,265,667 $ 805 $ 48,056,640 $ 527,460
Shares received for
reinvestment of dividends:
Shares.................... 814 1,562 35,928 55,581 682 493,891 7,193
Amount.................... $ 22,967 $ 33,575 $ 370,421 $ 650,293 $ 11,395 $ 493,891 $ 73,371
Shares redeemed:
Shares.................... (178) (284) (122,073) (66,510) (2,736) (49,940,184) (16,507)
Amount.................... $ (2,291) $ (3,940) $(1,259,597) $ (803,205) $ (36,536) $(49,940,184) $ (172,732)
-------- -------- ----------- ---------- --------- ------------ -----------
Net change:
Shares.................... 636 1,373 48,251 91,965 (2,006) (1,389,653) 41,397
Amount.................... $ 20,676 $ 31,637 $ 537,285 $ 1,112,755 $ (24,336) $ (1,389,653) $ 428,099
-------- -------- ----------- ---------- --------- ------------ -----------
Shares end of period:
Shares.................... 8,782 12,918 640,547 896,796 8,000 18,320,012 212,925
Amount.................... $ 167,083 $ 207,398 $ 6,757,834 $10,737,241 $ 127,530 $ 18,320,012 $2,195,291
======== ======== =========== ========== ========= ============ ===========
</TABLE>
59
<PAGE> 62
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust, Inc. at cost, at June 30,
1997 (unaudited) 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 period:
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
----------- ----------- ------------ ---------- ----------
Shares acquired:
Shares....................................... 337,098 161,621 1,147,966 319,621 370,216
Amount....................................... $10,174,072 $ 3,557,524 $ 41,338,047 $ 2,022,243 $2,042,082
Shares received for reinvestment of dividends:
Shares....................................... 0 0 0 0 30,474
Amount....................................... $ 0 $ 0 $ 0 $ 0 $ 168,155
Shares redeemed:
Shares....................................... (154,300) (96,514) (777,427) (73,789) (91,674)
Amount....................................... $(2,739,625) $(1,762,230) $(16,529,101) $ (373,165) $ (487,095)
----------- ----------- ------------ ---------- ----------
Net change:
Shares....................................... 182,798 65,107 370,539 245,832 309,016
Amount....................................... $ 7,434,447 $ 1,795,294 $ 24,808,946 $ 1,649,078 $1,723,142
----------- ----------- ------------ ---------- ----------
Shares end of period:
Shares....................................... 1,474,110 1,160,082 6,807,430 1,221,223 887,954
Amount....................................... $36,894,658 $21,640,668 $190,315,388 $ 7,088,499 $4,816,237
=========== =========== ============ ========== ==========
</TABLE>
Investments in OCC Accumulation Trust, Inc. at cost, at June 30, 1997
(unaudited) 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 period:
Shares................................................. 443,785 59,908 12,319 15,061 332,608
Amount................................................. $ 443,785 $ 565,925 $ 246,057 $264,999 $7,539,103
-------- --------- -------- -------- ----------
Shares acquired:
Shares................................................. 48,253 56,618 0 0 3,596
Amount................................................. $ 48,253 $ 577,601 $ 0 $ 0 $ 135,990
Shares received for reinvestment of dividends:
Shares................................................. 9,970 1,821 525 724 14,824
Amount................................................. $ 9,970 $ 17,775 $ 15,704 $ 15,785 $ 534,860
Shares redeemed:
Shares................................................. (6,202) (64,429) (1,163) (3,101) (39,365)
Amount................................................. $ (6,202) $(610,206) $ (21,588) $(54,239) $ (858,152)
-------- --------- -------- -------- ----------
Net change:
Shares................................................. 52,021 (5,990) (638) (2,377) (20,945)
Amount................................................. $ 52,021 $ (14,830) $ (5,884) $(38,454) $ (187,302)
-------- --------- -------- -------- ----------
Shares end of period:
Shares................................................. 495,806 53,918 11,681 12,684 311,663
Amount................................................. $ 495,806 $ 551,095 $ 240,173 $226,545 $7,351,801
======== ========= ======== ======== ==========
</TABLE>
60
<PAGE> 63
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
In an expected environment of slower economic growth and lack of pricing
power, earnings gains will likely be harder to come by in the second half of
1997. The slower growth should also produce lower interest rates which will help
valuations, but stock selection will become more important in a tougher earnings
environment.
Industries which are expected to continue to show above average earnings
will be those which either do not have to depend on price increases, or where
industry conditions are so good that some price increases are possible. For most
companies, the easy cost cutting has been done, and even a lot of the difficult
cost cutting. Earnings gains will have to be more in line with revenue gains.
Technology continues to be a major emphasis in the Portfolio. This sector
should continue to record above average earnings. The stocks have been strong
during the second quarter though, and the summer is normally a slow period so
some caution is necessary. Healthcare continues as an overweight and new
products in the pharmaceutical area continue to drive earnings.
The oil service sector has been gradually increased this year into a major
portfolio holding. Offshore drillers are in the midst of a strong demand
business environment and prices are rising dramatically for rigs. The service
companies are also being positively impacted by strong worldwide exploration.
EQUITY INCOME PORTFOLIO
Looking out into the second half with the expectation of slower growth, it
seems that earnings gains will be more difficult to come by. Reduced consumer
spending, lack of pricing power, lower revenues and the fact that most of the
easy cost cutting has already taken place will limit earnings. This same set of
circumstances should also produce lower interest rates, aiding valuations, but
it means that stock selection will be more important in a tougher earnings
environment. After a very strong first half, a somewhat defensive posture seems
warranted.
Defensive sectors which are being emphasized are the telephones, some
international oils and diversified natural gas companies. Some areas which look
to have relatively more stable earnings include healthcare and financial
services. The final areas of emphasis -- sectors and companies which do not seem
to be over extended and overexploited -- mainly fall in the economy sensitive
areas. These include capital goods such as machinery and diversified
manufacturing as well as basic materials, including forest products, paper and
metals.
These areas represent value as typified by above average yields. They have
not all been outperformers to date, and expectations are not as high as in many
of the market leaders. This strategy of being relatively fully invested respects
the power of the fund inflows. It also recognizes though, that the market has
been going up for a long time, and that valuations of the market are high, and
that expectations for market favorites are even higher. The risks have increased
and some defensiveness is in order.
61
<PAGE> 64
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 5.58 years as of June 30,
1997.
For the six months ended June 30, 1997, the Portfolio earned a total return
of 2.67%. For the one year period ending June 30, 1997, the Portfolio earned a
total return of 6.78%. For the five and ten year periods ending June 30, 1997,
the Portfolio earned an average annual return of 6.18% and 7.44%, respectively.
The U.S. bond market enjoyed satisfactory results during the second quarter
of 1997. Interest rates, as measured by the benchmark five-year U.S. Treasury,
declined 37 basis points to yield 6.38% at the end of the quarter. Once again,
Corporates and Mortgages outperformed Governments.
Following the Federal Reserve tightening of monetary policy on March 25,
1997, the market traded as if the economy would continue to expand at the
whopping 5.9% rate experienced in the first quarter. Those thoughts were put to
rest with the release of the Employment Cost Index, which showed no signs of
wage pressures, and served as the catalyst for the second quarter bond market
comeback. Thereafter, soft economic data showing weakened consumer demand,
cooling labor markets and no inflation supported the bond market for the rest of
the period.
Going forward, we believe that economic activity will accelerate, as
consumer demand rebounds, manufacturing continues to expand, and housing
stabilizes. The Federal Reserve will most likely raise interest rates in order
to slow down the economy and to keep inflation under control. Interest rates
will trade at the upper end of the established range. The corporate sector will
continue to be supported by stable credit trends and good technicals.
The Portfolio is currently invested in 24 corporate issuers, comprising
58.2% of total invested assets. U.S. Treasury issues make up 14.8% of the
Portfolio, with 8.0% in mortgage-backed securities, 2.0% in asset-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.
62
<PAGE> 65
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
ultimate return expected to be greater. The Portfolio had an average maturity of
22.6 years and a duration of 9.9 years as of June 30, 1997.
For the six months ended June 30, 1997, the Portfolio earned a total return
of 2.30%. For the one year period ending June 30, 1997, the Portfolio earned a
total return of 8.65%. For the five and ten year periods ending June 30, 1997,
the Portfolio earned an average annual return of 8.63% and 9.56%, respectively.
These returns take into account charges imposed by the Portfolio. Additional
charges are imposed by the Variable Accounts. Of course, past performance does
not guarantee future investment results.
The U.S. bond market enjoyed satisfactory results during the second quarter
of 1997. Interest rates, as measured by the benchmark thirty-year U.S. Treasury,
declined 31 basis points to yield 6.78% at the end of the quarter. Once again,
Corporates and Mortgages outperformed Governments.
Following the Federal Reserve tightening of monetary policy on March 25,
1997, the market traded as if the economy would continue to expand at the
whopping 5.9% rate experienced in the first quarter. Those thoughts were put to
rest with the release of the Employment Cost Index, which showed no signs of
wage pressures, and served as the catalyst for the second quarter bond market
comeback. Thereafter, soft economic data showing weakened consumer demand,
cooling labor markets and no inflation supported the bond market for the rest of
the period.
The second half of the year should show an acceleration of growth as
increased consumer confidence, consumer spending and strength in the housing
market contribute to a rebound in growth. There exists a possibility of an
interest rate hike by the Federal Reserve in order to slow down the economy and
to keep inflation under control, although a dramatic back up in interest rates
is unlikely. However, the corporate bond sector should remain strong over the
near future based on fundamental and technical factors. Balance sheets and cash
flows are strong, earnings outlook is good, and the leveraged acquisitions or
"event risks" have yet to materialize. The demand for bonds has outpaced supply.
While this should continue, the opportunities now present a good time to move
into stronger, less volatile corporate holdings. During last quarter, we sold
lower rated Millenium Chemicals, a commodity chemical company for a stronger,
more stable profile company, Wells Fargo. We will remain overweighted in
corporate bonds for the foreseeable future.
The Portfolio is currently invested in 32 corporate issuers, comprising 58%
of total invested assets, U.S. Treasury issues represent 33%, 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 of Aa3.
63
<PAGE> 66
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
After taking a breather in the first quarter, the financial markets took
off on a gallop in the spring. Stocks surged, with repeated new highs in most
major indices, and the Dow seeming to head straight for 8000. Bonds followed, in
their more subdued fashion, with solid gains in most sectors. Whether it be
called the New Paradigm, or the New Era, the combination of steady growth,
strong profits, and low inflation proved to be very kind to financial market
investors.
Despite valuations that seem excessive by traditional measures, there seems
to be little on the horizon to restrain the bull. For now, momentum rules, and
that momentum points clearly upward.
Returns on the quarter for the broad indices were positive: the S&P 500
Stock Index was up 16.91%, the benchmark Lehman Brothers Aggregate Bond Index
was up 3.67%.
For the six months ended June 30, 1997, the Portfolio earned a total return
of 15.45%. For the one year period ending June 30,1997, the Portfolio earned a
total return of 24.35%. For the five and ten year periods ending June 30, 1997,
the Portfolio earned an average annual return of 14.31% and 11.37%,
respectively. These returns take into account charges imposed by the Portfolio.
Additional charges are imposed by the Variable Accounts. Of course, past
performance does not guarantee future investment results.
As of June 30, 1997, the Diversified Portfolio was invested 77% in common
stocks, 15% in bonds, and 8% in money-market equivalents.
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 US 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 2.7 years as of June 30, 1997.
For the six months ended June 30, 1997, the Portfolio earned a total return
of 2.94%. For the one year period ending June 30, 1997, the Portfolio earned a
total return of 6.33% and 5.59% for the five year period. Since inception on May
1, 1991, the Portfolio earned an average annual return of 6.54% for the period
ending June 30, 1997.
The second quarter provided a slowing of earlier sizzling economic growth.
This timely cooling put the Federal Reserve on hold, meaning there would be no
immediate need for further interest rate hikes to temper growth. Intermediate
Treasury (4-10 year maturity) yields moved down approximately one-half a
percentage point .
The economy seems entrenched in a pattern of accelerating, then cooling
economic growth, but always tacking toward full capacity. Fueled by stock market
gains and strong employment, we expect the trend to continue with a resumption
of growth in the second half. The possibility of another hike in short-term
rates is strong, and bonds could be vulnerable. The portfolio enters the summer
conservatively positioned.
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 U.S. Government.
64
<PAGE> 67
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
Over the course of the second quarter of 1997, concerns subsided among bond
market participants over a further move by the Federal Reserve Board to tighten
monetary policy via another boost in the overnight Fed Funds rate. Retail sales,
a key indicator of economic vitality, slowed markedly in the second quarter
falling at an annualized rate of 5.30% from February to May, hinting at a much
quieter economic pace than that exhibited in the first quarter. Still, leading
up to the May meeting, many market participants thought the Fed would again
tighten monetary policy due to very tight labor market conditions. However, the
Fed held its policy steady in May and has been vindicated in the face of a
quiescent inflationary backdrop, moderating economic growth, and recent easing
of labor market pressures.
The yield curve remains relatively flat. Investors responded to the
moderating economic conditions in the second quarter and the Fed's restraint
against additional tightening of monetary policy by staging a strong rally.
Interest rates declined by 32 basis points (1/100 of a percentage point) in the
second quarter from a yield of 7.10% at the end of the first quarter to 6.78% at
the end of the second quarter. The prevailing sentiment is that the FOMC is on
hold in terms of an interest rate move absent a significant re-igniting of
economic growth in the third quarter. Thus, the average maturity of the
Portfolio will be modestly extended to capitalize on what is seen as a bullish
interest rate environment in the near term. At June 30, 1997, the average
maturity of the Portfolio was 23.0 days.
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. The
30-day and 7-day current yields of the Portfolio were 5.22% and 5.25%,
respectively, as of June 30, 1997, after charges imposed by the Portfolio. Of
course, past performance does not guarantee future investment results.
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.
65
<PAGE> 68
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 93.4%
- --------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE -- 0.8%
Boeing Co. 400 $ 21,225
----------
AIR TRANSPORTATION -- 3.9%
AMR Corp.* 300 27,750
Delta Airlines Inc. 400 32,800
UAL Corp.* 600 42,937
----------
103,487
----------
AUTOMOBILES -- 1.1%
Ford Motor Co. 300 11,325
General Motors Corp. 300 16,706
----------
28,031
----------
BANKS/MAJOR -- 3.5%
BankAmerica Corp. 400 25,825
Chase Manhattan Corp. 300 29,119
Citicorp 300 36,169
----------
91,113
----------
BANKS/REGIONAL -- 2.0%
First Union Corp. 300 27,750
NationsBank Corp. 400 25,800
----------
53,550
----------
BEVERAGES-SOFT DRINKS -- 2.1%
Coca-Cola Co. 800 54,000
----------
BIO-TECHNOLOGIES -- 0.9%
Amgen, Inc.* 400 23,250
----------
CHEMICALS -- 3.0%
du Pont (E.I.) de Nemours &
Co. 600 37,725
Hercules, Inc. 400 19,150
Monsanto, Co. 500 21,531
----------
78,406
----------
COSMETICS -- 1.1%
Gillette Co. 300 28,425
----------
DRUGS -- 8.9%
Bristol Meyers Squibb Co. 500 40,500
Lilly(Eli) & Co. 300 32,794
Merck & Co., Inc. 300 31,050
Pfizer Inc. 200 23,900
Schering-Plough Corp. 400 19,150
Smithkline-Beecham, PLC, ADR+ 400 36,650
Warner-Lambert Co. 400 49,700
----------
233,744
----------
ELECTRICAL EQUIPMENT -- 4.2%
Emerson Electric Co. 600 33,037
General Electric Co. 1,200 78,450
----------
111,487
----------
ELECTRONICS -- 6.8%
AMP, Inc. 500 20,875
Applied Materials, Inc.* 300 21,244
Hewlett-Packard Co. 400 22,400
Intel Corp. 300 42,544
Motorola, Inc. 300 22,800
Rambus Inc.* 500 23,250
Texas Instruments, Inc. 300 25,219
----------
178,332
----------
ENTERTAINMENT -- 3.8%
Disney (Walt) Co. 500 $ 40,125
ENSCO International* 600 31,650
Time Warner, Inc. 600 28,950
----------
100,725
----------
FINANCIAL SERVICES -- 2.0%
Federal Home Loan Mortgage
Corp. 800 27,500
Federal National Mortgage
Assn. 600 26,175
----------
53,675
----------
HOSPITAL MANAGEMENT -- 4.4%
Aetna Inc. 300 30,713
Columbia/HCA Healthcare Corp. 400 15,725
Oxford Health Plans, Inc.* 200 14,350
Sunrise Assisted Living, Inc.* 1,000 35,000
United Healthcare Corp. 400 20,800
----------
116,588
----------
HOSPITAL SUPPLIES -- 1.5%
Johnson & Johnson 600 38,625
----------
INSURANCE -- 3.1%
American International Group,
Inc. 300 44,813
General Re Corp. 200 36,400
----------
81,213
----------
MACHINERY -- 5.0%
Case Corp. 500 34,438
Caterpillar, Inc. 300 32,213
Deere & Co. 600 32,925
Ingersoll-Rand Co. 500 30,875
----------
130,451
----------
METALS -- 1.1%
Aluminum Company of America 400 30,150
----------
OFFICE & BUSINESS EQUIP. -- 8.6%
Compaq Computer Corp.* 300 29,775
Electronic Data Systems Corp. 400 16,400
International Business
Machines Corp. 400 36,075
Micron Technology, Inc. 700 27,956
Microsoft, Corp.* 400 50,550
Oracle Corp.* 700 35,263
Sun Microsystems Inc.* 800 29,775
----------
225,794
----------
OIL -- DOMESTIC -- 1.5%
Amoco Corp. 300 26,081
Atlantic Richfield Co. 200 14,100
----------
40,181
----------
OIL -- INTERNATIONAL -- 6.4%
British Petroleum, PLC, ADR+ 400 29,950
Chevron Corp. 400 29,575
Exxon Corp. 600 36,900
Mobil Corp. 400 27,950
Royal Dutch Petroleum Co. 400 21,750
Texaco, Inc. 200 21,750
----------
167,875
----------
</TABLE>
See notes to financial statements.
66
<PAGE> 69
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- -----------------------------------------------------------------------------
<S> <C> <C>
OIL -- SERVICES -- 7.3%
Baker Hughes, Inc. 600 $ 23,213
Diamond Offshore Drilling
Inc.* 500 39,063
EVI Inc.* 1,000 42,000
Halliburton Co. 300 23,775
Reading & Bates Corp.* 1,000 26,750
Schlumberger-Ltd. 300 37,500
----------
192,301
----------
PAPER -- 1.7%
Fort Howard Corp.* 400 20,250
International Paper Co. 500 24,281
----------
44,531
----------
PUBLISHING -- 1.4%
Central Newspaper 500 35,813
----------
RESTAURANTS -- 0.7%
McDonald's Corp. 400 19,325
----------
SOAPS -- 1.1%
Procter & Gamble Inc. 200 28,250
----------
TELECOMMUNICATIONS -- 4.2%
Cabletron Systems, Inc.* 600 16,988
Cisco Systems, Inc.* 500 33,563
Qwest Communications
International Inc.* 500 13,625
Teleport Communications, Inc.* 400 13,650
Worldcom, Inc.* 1,000 32,000
----------
109,826
----------
TOBACCO -- 1.3%
Philip Morris Cos., Inc. 800 $ 35,491
----------
TOTAL COMMON STOCKS
(COST $1,576,134) $ 2,455,864
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.7%
- -----------------------------------------------------------------------------
<S> <C> <C>
General Electric Co.,
5.56%, due 07/28/98 (cost
$99,583) $100,000 $99,583
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $1,675,718) -- 97.1% $ 2,555,447
OTHER ASSETS LESS LIABILITIES -- 2.9% 76,778
- -----------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 2,632,225
=============================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1997 is $1,675,718.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 881,803
Aggregate gross unrealized depreciation (2,074)
----------
Net unrealized appreciation $ 879,729
==========
</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.
67
<PAGE> 70
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.2%
- --------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE -- 2.1%
Northrop Grumman Corp. 2,000 $ 175,624
United Technologies Corp. 3,000 249,000
----------
424,624
----------
AUTOMOBILES -- 1.2%
Ford Motor Co. 3,000 113,250
General Motors Corp. 2,500 139,218
----------
252,468
----------
AUTOMOTIVE PARTS -- 2.2%
Dana Corp. 6,000 228,000
Eaton Corp. 2,500 218,280
----------
446,280
----------
BANKS/MONEY CENTERS -- 3.9%
Bank of New York Co., Inc. 4,000 174,000
BankAmerica Corp. 4,000 258,248
Bankers Trust New York Corp. 2,000 174,000
Chase Manhattan Corp. 2,000 194,124
----------
800,372
----------
BANKS/REGIONAL -- 2.8%
First Union Corp. 2,500 231,250
NationsBank Corp. 4,000 258,000
Wells Fargo & Co. 300 80,850
----------
570,100
----------
CHEMICALS -- 3.6%
du Pont (E.I.) de Nemours &
Co. 6,000 377,250
Monsanto Co. 5,000 215,310
Olin Corp. 4,000 156,248
----------
748,808
----------
CONGLOMERATES -- 2.9%
General Signal Corp. 4,000 174,500
Harsco Corp. 4,000 162,000
Textron Inc. 4,000 265,500
----------
602,000
----------
COSMETICS -- 1.2%
Avon Products, Inc. 3,500 246,967
----------
DRUGS -- 10.3%
American Home Products Corp. 3,000 229,500
Baxter International, Inc. 4,000 209,000
Bristol Myers Squibb Co. 3,500 283,499
Lilly (Eli) & Co. 2,500 273,280
Merck and Co., Inc. 2,500 258,750
Schering-Plough Corp. 4,000 191,500
Smithkline Beecham P.L.C. 3,500 320,688
Warner Lambert Co. 3,000 372,750
----------
2,138,967
----------
ELECTRICAL EQUIPMENT -- 4.8%
Emerson Electric Co. 6,000 330,372
General Electric Co. 10,000 653,750
----------
984,122
----------
ELECTRONICS -- 3.2%
AMP Inc. 6,000 250,500
Honeywell Inc. 2,500 189,688
Thomas & Betts Corp. 4,000 210,248
----------
650,436
----------
FOREST PRODUCTS -- 2.0%
Georgia Pacific Corp. 2,500 $ 213,438
Weyerhaeuser Co. 4,000 208,000
----------
421,438
----------
HOSPITAL MANAGEMENT -- 0.7%
Aetna Inc. 1,500 153,563
----------
INSURANCE -- 3.1%
CIGNA Corp. 1,500 266,250
Lincoln National Corp. 3,000 193,125
St. Paul Co., Inc. 2,500 190,624
----------
649,999
----------
MACHINERY -- 3.7%
Cooper Industries, Inc. 4,000 199,000
Deere & Co. 5,000 274,375
Timken Co. 8,000 284,496
----------
757,871
----------
METALS -- 3.4%
Carpenter Technology Corp. 3,000 137,250
Freeport McMoRan Copper &
Gold, Inc. 3,500 102,375
Phelps Dodge Corp. 2,500 212,968
Reynolds Metals Co. 3,500 249,375
----------
701,968
----------
MISCELLANEOUS -- 1.4%
Minnesota Mining &
Manufacturing Co. 2,000 204,000
Public Storage 3,000 87,750
----------
291,750
----------
MISCELLANEOUS FINANCE -- 1.9%
American Express Co. 3,000 223,500
Federal National Mortgage
Assn. 4,000 174,500
----------
398,000
----------
NATURAL GAS DIVERSIFIED -- 3.4%
Consolidated Natural Gas Co. 3,000 161,436
El Paso Natural Gas 3,200 176,000
MCM Energy Group 1,000 30,625
Questar Corp. 4,000 161,500
Sonat Inc. 3,500 179,375
----------
708,936
----------
OFFICE & BUSINESS EQUIPMENT -- 2.5%
Pitney-Bowes, Inc. 3,000 208,500
Xerox Corp. 4,000 315,500
----------
524,000
----------
OIL -- DOMESTIC -- 1.7%
Amoco, Corp. 2,500 217,343
Atlantic Richfield Co. 2,000 141,000
----------
358,343
----------
</TABLE>
See notes to financial statements.
68
<PAGE> 71
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ----------------------------------------------------------------------------
<S> <C> <C>
OIL -- INTERNATIONAL -- 6.6%
British Petroleum 3,000 $ 224,625
Chevron, Corp. 2,500 184,843
Exxon Corp. 5,000 307,500
Mobil Corp. 3,000 209,625
Royal Dutch Petroleum Co. 4,000 217,500
Texaco, Inc. 2,000 217,500
----------
1,361,593
----------
OIL -- SERVICE &
DRILLING -- 2.6%
Dresser Industries Inc. 6,000 223,500
Williams (The) Companies,
Inc. 7,000 306,250
----------
529,750
----------
PAPER -- 1.9%
International Paper Co. 4,000 194,248
Union Camp Corp. 4,000 200,000
----------
394,248
----------
PHOTOGRAPHY -- 0.7%
Eastman Kodak Co. 2,000 153,500
----------
PUBLISHING -- 1.1%
McGraw-Hill Companies,Inc. 4,000 235,248
----------
RAILROADS -- 2.0%
Norfolk Southern Corp. 2,000 201,500
Union Pacific Co. 3,000 211,500
----------
413,000
----------
REAL ESTATE -- 3.9%
Bay Apartment Community, Inc. 2,000 74,000
Crescent Operating Inc. 400 4,800
Crescent Real Estate Equities
Inc. 4,000 127,000
Developers Diversified Realty 2,500 100,000
Equity Residential Properties
Trust 2,000 95,000
Felcor Suite Hotels Inc. 3,500 130,375
Health Care Property
Investors, Inc. 5,000 176,250
Irvine Apartment Communities,
Inc. 3,500 102,814
----------
810,239
----------
SAVINGS & LOAN -- 2.8%
Ahmanson (H.F.) & Co. 6,000 258,000
Great Western Financial Corp. 6,000 322,500
----------
580,500
----------
SOAPS -- 1.6%
Colgate Palmolive Co. 5,000 326,250
----------
TELECOMMUNICATIONS EQUIPMENT -- 1.2%
Harris Corp. 3,000 252,000
----------
TOBACCO -- 1.9%
Fortune Brands, Inc 3,500 $ 130,592
Gallaher Group P.L.C. 3,500 64,530
Philip Morris Companies, Inc. 4,500 199,688
----------
394,810
----------
UTILITIES -- ELECTRIC -- 2.0%
American Electric Power Co.,
Inc. 3,000 126,000
Carolina Power & Light Co. 4,000 143,500
FPL Group, Inc. 3,000 138,186
----------
407,686
----------
UTILITIES -- TELEPHONE -- 7.9%
Ameritech Corp. 3,500 237,780
Bell Atlantic Corp. 3,500 265,562
Bellsouth Corp. 4,500 208,687
GTE Corp. 4,000 175,500
NYNEX Corp. 2,000 115,250
SBC Communications Inc. 5,000 309,375
Sprint, Corp. 4,000 210,500
U.S. West Communications Inc. 3,000 113,057
----------
1,635,711
----------
TOTAL COMMON STOCKS
(COST $12,761,201) 20,325,547
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
-------------------
COMMERCIAL PAPER -- 0.9%
- ----------------------------------------------------------------------------
<S> <C> <C>
General Electric Co.,
5.52%, due 07/25/97
(cost $173,819) $ 175,000 $ 173,819
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $12,935,020) 99.1% $ 20,499,366
OTHER ASSETS LESS LIABILITIES -- 0.9% 191,335
- ----------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 20,690,701
============================================================================
</TABLE>
The aggregate cost of securities for federal income tax purpose at June 30, 1997
is $12,946,000.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $7,579,003
Aggregate gross unrealized depreciation (3,677)
----------
Net unrealized appreciation $7,575,326
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
69
<PAGE> 72
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 58.2%
- -------------------------------------------------------------------------
<S> <C> <C>
Associates Corp. of North America,
6.00%, due 06/15/00 $1,000,000 $ 984,160
Bank of Boston,
6.625%, due 02/01/04 1,000,000 978,060
Bear Stearns Co. Inc.,
7.25%, due 10/15/06 1,000,000 998,450
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 995,350
CSX Corp.,
7.25%, due 05/01/04 1,000,000 1,011,210
Chase Capital III,
6.10%, due 03/01/27 1,000,000 975,410
Chase Manhattan Corp.,
6.75%, due 08/15/08 1,000,000 962,130
Chemical Master Credit Card Trust,
5.98%, due 12/15/08 1,000,000 946,800
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 986,200
Connecticut Light & Power Co.,
7.25%, due 07/01/99 1,000,000 993,970
First Chicago Corp.,
9.00%, due 06/15/99 1,000,000 1,046,380
First Data Corp.,
6.75%, due 07/15/05 1,000,000 984,350
Ford Motor Corp.,
6.50%, due 02/28/02 1,000,000 988,820
General Electric Capital Corp.,
6.66%, due 05/01/18 1,000,000 1,002,160
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,008,330
Laidlaw Inc.,
7.70%, due 08/15/02 1,000,000 1,032,150
Lockheed Martin Corp.,
6.55%, due 05/15/99 1,000,000 1,002,900
National Rural Utilities,
6.75%, due 09/01/01 1,000,000 1,001,890
Occidental Petroleum Corp.,
7.08%, due 01/12/98 1,000,000 1,005,960
Philip Morris Companies, Inc.,
7.50%, due 04/01/04 1,000,000 1,013,920
Potash Corp. of Saskatchewan,
7.125%, due 06/15/07 1,000,000 996,650
Potomac Edison Co.,
8.00%, due 06/01/06 1,000,000 1,021,810
Provident Bank,
6.375%, due 01/15/04 1,000,000 959,390
Structured Asset Securities Co.,
5.944%, due 02/25/28 980,000 957,293
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $23,902,111) $ 23,853,743
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.0%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.40%, due 07/14/97 $ 100,000 $ 99,805
Federal Home Loan Mortgage Corp.,
5.41%, due 07/30/97 225,000 224,020
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.50%, due 02/15/21 2,000,000 1,960,340
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.00%, due 01/25/03 $1,000,000 $ 1,008,620
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $ 3,274,681) $ 3,292,785
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 14.8%
- -------------------------------------------------------------------------
U.S. Treasury Notes,
6.875%, due 07/31/99 $2,000,000 $ 2,029,360
U.S. Treasury Notes,
6.375%, due 05/15/00 1,000,000 1,003,750
U.S. Treasury Notes,
6.625%, due 07/31/01 1,000,000 1,010,000
U.S. Treasury Notes,
6.500%, due 05/31/02 2,000,000 2,007,500
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $6,004,720) $ 6,050,610
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 17.8%
- -------------------------------------------------------------------------
Associates Corp. of North America,
5.61%, due 07/24/97 $1,900,000 $ 1,895,082
CIT Group Holdings Inc.,
5.53%, due 07/28/97 325,000 323,652
First National Bank of Chicago,
5.66%, due 09/03/97 1,250,000 1,255,343
Ford Motor Credit Corp.,
5.55%, due 07/17/97 1,550,000 1,546,177
Merrill Lynch and Co. Inc.,
5.58%, due 07/21/97 300,000 299,070
Prudential Funding Corporation,
5.51%, due 07/21/97 100,000 99,694
Sears Roebuck Acceptance Corp.,
5.57%, due 07/28/97 350,000 348,538
Textron Financial Corp.,
5.80%, due 08/06/97 1,050,000 1,043,910
Transamerica Commercial FIN-CAN,
5.56%, due 07/15/97 500,000 498,918
----------------
TOTAL COMMERCIAL PAPER
(COST $7,308,493) $ 7,310,384
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $40,490,005) -- 98.8% $ 40,507,522
OTHER ASSETS LESS LIABILITIES -- 1.2% 493,482
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 41,001,004
=========================================================================
</TABLE>
The aggregate cost of securities for federal income tax purpose at June 30, 1997
is $40,490,005.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 215,189
Aggregate gross unrealized depreciation (197,672)
----------
Net unrealized appreciation $ 17,517
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
70
<PAGE> 73
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 57.9%
- -------------------------------------------------------------------------
<S> <C> <C>
Aetna Services Inc.,
7.625%, due 08/15/26 $1,000,000 $ 993,930
Apache Corp.,
7.625%, due 11/01/96 1,000,000 989,460
Boeing Co.,
8.625%, due 11/15/31 1,000,000 1,152,320
British Columbia, Province of,
7.250%, due 09/01/36 1,000,000 995,350
Capita Equipment Receivable Trust 1996-1,
6.570%, due 03/15/01 1,000,000 998,480
Chase Capital III,
6.100%, due 03/01/27 1,000,000 975,410
Chase Manhattan Corp.,
6.750%, due 08/15/08 1,000,000 962,130
Columbia/HCA Healthcare Corp.,
7.690%, due 06/15/25 1,000,000 1,004,060
Commonwealth Edison Co.,
7.000%, due 07/01/05 1,000,000 986,200
Crown Cork and Seal Co. Inc.,
7.375%, due 12/15/26 1,000,000 966,970
Enersis S.A.,
7.400%, due 12/01/26 1,000,000 960,220
Federal Express Corp.,
7.500%, due 11/15/18 2,000,000 2,051,140
General Electric Capital Corp.,
8.300%, due 09/20/09 2,000,000 2,228,240
General Motors Corp.,
7.000%, due 06/15/03 1,000,000 1,007,540
GTE South Corp.,
7.500%, due 03/15/26 1,000,000 971,830
Hydro-Quebec,
8.500%, due 12/01/29 1,000,000 1,093,520
International Bank for
Reconstruction & Development,
8.875%, due 03/01/26 1,000,000 1,194,300
James River Corp.,
7.750%, due 11/15/23 1,000,000 991,560
Laidlaw Inc.,
7.875%, due 04/15/05 1,000,000 1,037,710
Legrand SA,
8.500%, due 02/15/25 1,000,000 1,108,180
Lockheed Martin Corp.,
7.650%, due 05/01/16 1,000,000 1,012,580
Morgan Stanley Group Inc.,
6.875%, due 03/01/07 1,000,000 980,280
National City Bank of Cleveland,
7.250%, due 07/15/10 1,000,000 999,160
Norfolk Southern Corp.,
7.800%, due 05/15/27 1,000,000 1,028,500
Philip Morris Companies Inc.,
7.250%, due 09/15/01 1,000,000 1,013,820
Procter & Gamble Corp.,
6.450%, due 01/15/26 1,000,000 898,460
Provident Bank of Cincinnati,
6.375%, due 01/15/04 1,000,000 959,390
Rohm & Haas Co.,
9.500%, due 04/01/21 1,000,000 1,120,540
Seagram (J.E.) & Sons Inc.,
9.650%, due 08/15/18 1,000,000 1,213,130
Swiss Bank Corp.,
7.750%, due 09/01/26 2,000,000 2,038,280
Texaco Capital, Inc.,
9.750%, due 03/15/20 1,000,000 1,248,780
Wells Fargo Capital Inc.,
7.960%, due 12/15/26 $2,000,000 $ 1,973,020
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $36,635,796) $ 37,154,490
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.4%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
6.850%, due 01/15/22 $1,000,000 $ 991,660
Federal National Mortgage Assn.,
5.360%, due 07/02/97 100,000 99,985
Federal National Mortgage Assn.,
REMIC, Trust 92-198,
7.500%, due 09/25/22 2,000,000 2,004,880
Student Loan Marketing Assn.,
5.950%, due 07/27/09 1,000,000 1,002,578
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $3,863,900) $ 4,099,103
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 33.0%
- -------------------------------------------------------------------------
U.S. Treasury Notes,
7.750%, due 12/31/99 $ 500,000 $ 517,810
U.S. Treasury Notes,
6.250%, due 10/31/01 500,000 497,810
U.S. Treasury Notes,
6.625%, due 05/15/07 500,000 504,060
U.S. Treasury Notes,
7.875%, due 02/15/21 2,500,000 2,785,925
U.S. Treasury Notes,
7.625%, due 02/15/25 9,500,000 10,396,515
U.S. Treasury Notes,
6.750%, due 08/15/26 1,500,000 1,484,055
U.S. Treasury Notes,
6.500%, due 11/15/26 1,000,000 958,430
U.S. Treasury Notes,
6.625%, due 02/15/27 1,000,000 978,120
U.S. Treasury Strips,
0.000%, due 05/15/18 12,900,000 3,037,563
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $21,121,916) $ 21,160,288
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 1.2%
- -------------------------------------------------------------------------
CIT Group Holdings Inc.,
5.53%, due 07/28/97 $ 285,000 $ 283,818
Dow Chemical Co.,
5.50%, due 07/11/97 100,000 99,847
General Electric Capital Corp.,
5.52%, due 07/25/97 100,000 99,632
Nynex Corp.,
5.54%, due 07/03/97 175,000 174,946
Sears Roebuck Acceptance Corp.,
5.57%, due 07/28/97 100,000 99,583
----------------
TOTAL COMMERCIAL PAPER
(COST $757,826) $ 757,826
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $62,379,437) -- 98.5% $ 63,171,707
OTHER ASSETS LESS LIABILITIES -- 1.5% 957,877
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 64,129,584
=========================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June
30, 1997 is $62,379,437.
The following amounts are based on costs for federal income tax
puposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 1,527,165
Aggregate gross unrealized depreciation (734,896)
--------------
Net unrealized appreciation $ 792,269
==============
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
71
<PAGE> 74
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------
COMMON STOCK -- 77.2%
- --------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE -- 0.9%
Boeing Co. 600 $ 31,837
----------
AIR TRANSPORTATION -- 3.7%
AMR Corp.* 400 37,000
Delta Airlines Inc. 600 49,200
UAL Corp.* 600 42,937
----------
129,137
----------
AUTOMOBILES -- 1.1%
Ford Motor Co. 400 15,100
General Motors Corp. 400 22,275
----------
37,375
----------
BANKS/MAJOR -- 2.2%
Chase Manhattan Corp. 300 29,119
Citicorp 400 48,225
----------
77,344
----------
BANKS/REGIONAL -- 1.9%
BankAmerica Corp. 600 38,737
Wells Fargo & Co. 300 27,750
----------
66,487
----------
BIO-TECHNOLOGIES -- 1.0%
Amgen Inc. * 600 34,875
----------
CHEMICALS -- 2.8%
du Pont (E.I.) de Nemours & Co. 800 50,300
Hercules, Inc. 500 23,938
Monsanto, Co. 500 21,531
----------
95,769
----------
COSMETICS -- 1.1%
Gillette Co. 400 37,900
----------
DRUGS -- 6.5%
Bristol Myers Squibb Co. 400 32,400
Lilly (Eli) & Co. 100 10,931
Merck & Co., Inc. 400 41,400
Pfizer Inc. 200 23,900
Schering-Plough Corp. 400 19,150
Smithkline Beecham, PLC, ADR+ 400 36,650
Warner-Lambert Co. 500 62,125
----------
226,556
----------
ELECTRICAL EQUIPMENT -- 4.2%
Emerson Electric Co. 1,000 55,062
General Electric Co. 1,400 91,525
----------
146,587
----------
ELECTRONICS -- 5.6%
AMP, Inc. 800 33,400
Applied Materials, Inc.* 400 28,325
Hewlett-Packard Co. 500 28,000
Intel Corp. 300 42,544
Motorola, Inc. 400 30,400
Texas Instruments, Inc. 400 33,625
----------
196,294
----------
ENTERTAINMENT -- 1.9%
Disney (Walt) Co. 400 32,100
Time Warner, Inc. 700 33,775
----------
65,875
----------
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
FINANCIAL SERVICES -- 1.9%
Federal Home Loan Mortgage Corp. 1,000 $ 34,375
Federal National Mortgage Assn. 700 30,538
----------
64,913
----------
HOSPITAL MANAGEMENT -- 2.6%
Aetna Inc. 300 30,713
Columbia/HCA Healthcare Corp. 500 19,656
Oxford Health Plans, Inc.* 200 14,350
United Healthcare Corp. 500 26,000
----------
90,719
----------
HOSPITAL SUPPLIES -- 1.5%
Johnson & Johnson 800 51,500
----------
INSURANCE -- 2.8%
American International Group,
Inc. 400 59,750
General Re Corp. 200 36,400
----------
96,150
----------
MACHINERY -- 5.0%
Case Corp. 600 41,325
Caterpillar, Inc. 300 32,213
Deere & Co. 900 49,388
Ingersoll-Rand Co. 800 49,400
----------
172,326
----------
METALS -- 0.9%
Aluminum Company of America 400 30,150
----------
OFFICE & BUSINESS EQUIPMENT -- 6.8%
Compaq Computer Corp.* 300 29,775
Electronics Data Systems Corp. 400 16,400
International Business Machines
Corp. 400 36,075
Micron Technology, Inc. 800 31,950
Microsoft Corp.* 500 63,188
Oracle Corp.* 600 30,225
Sun Microsystems Inc.* 800 29,774
----------
237,387
----------
OIL -- DOMESTIC -- 1.8%
Amoco Corp. 400 34,775
Atlantic Richfield Co. 400 28,200
----------
62,975
----------
OIL -- INTERNATIONAL -- 5.8%
British Petroleum, PLC, ADR+ 400 29,950
Chevron Corp. 400 29,575
Exxon Corp. 600 36,900
Mobil Corp. 400 27,950
Royal Dutch Petroleum Co. 800 43,500
Texaco, Inc. 300 32,625
----------
200,500
----------
OIL -- SERVICES -- 6.9%
Baker Hughes, Inc. 800 30,950
Diamond Offshore Drilling Inc.* 500 39,063
Ensco International Inc.* 600 31,650
EVI Inc.* 1,200 50,400
Halliburton Co. 300 23,775
Reading & Bates Corp. 1,000 26,750
Schlumberger-Ltd. 300 37,500
----------
240,088
----------
</TABLE>
See notes to financial statements.
72
<PAGE> 75
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------
<S> <C> <C>
PAPER -- 1.7%
Fort Howard Corp.* 600 $ 30,375
International Paper Co. 600 29,137
----------
59,512
----------
RESTAURANTS -- 0.7%
McDonald's Corp. 500 24,156
----------
SOAPS -- 1.2%
Procter & Gamble Inc. 300 42,375
----------
TELECOMMUNICATIONS -- 3.9%
Cabletron Systems, Inc.* 600 16,987
Cisco Systems, Inc.* 500 33,563
Qwest Communications
International Inc.* 500 13,625
Teleport Communications, Inc.* 600 20,475
Worldcom, Inc.* 1,600 51,200
----------
135,850
----------
TOBACCO -- 0.8%
Philip Morris Cos., Inc. 600 26,620
----------
TOTAL COMMON STOCKS
(COST $1,618,932) $ 2,681,257
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------
COMMERCIAL PAPER -- 7.1%
- --------------------------------------------------------------------------
<S> <C> <C>
General Electric Capital Corp.,
5.52%, due 07/25/97
(cost $249,080) $250,000 $ 249,080
- --------------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 15.0%
- --------------------------------------------------------------------------
U.S. Treasury Notes,
7.500%, due 05/15/02
(cost $516,705) $500,000 $ 523,125
- --------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,384,717) -- 99.3% $ 3,453,462
- --------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- 0.7% 25,750
- --------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 3,479,212
==========================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1997 is $2,384,717.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $1,070,041
Aggregate gross unrealized depreciation (1,296)
----------
Net unrealized appreciation $1,068,745
=========
</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.
73
<PAGE> 76
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 30.3%
- -------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Note,
5.375%, due 11/30/97 $2,000,000 $ 1,998,120
U.S. Treasury Note,
6.00%, due 05/31/98 1,000,000 1,001,560
U.S. Treasury Note,
6.00%, due 08/15/99 1,000,000 997,500
U.S. Treasury Note,
5.875%, due 11/15/99 1,000,000 993,430
U.S. Treasury Note,
7.75%, due 11/30/99 1,000,000 1,034,680
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $5,998,789) $ 6,025,290
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 68.0%
- -------------------------------------------------------------------------
Federal Farm Credit Union,
5.63%, due 05/26/98 $2,000,000 $ 1,995,780
Federal Home Loan Mortgage Corp.,
5.41%, due 07/11/97 200,000 199,699
Federal Home Loan Mortgage Corp.,
5.39%, due 07/14/97 650,000 648,735
Federal Home Loan Mortgage Corp.,
5.40%, due 07/14/97 500,000 499,025
Federal Home Loan Mortgage Corp.,
6.50%, due 11/15/21 1,500,000 1,459,305
Federal National Mortgage Assn.,
5.36%, due 07/02/97 100,000 99,985
Federal National Mortgage Assn.,
5.41%, due 07/21/97 100,000 99,700
Federal National Mortgage Assn.,
5.37%, due 07/25/97 175,000 174,374
Federal National Mortgage Assn.,
5.38%, due 07/25/97 300,000 298,924
Federal National Mortgage Assn.,
7.00%, due 01/25/03 285,000 287,456
Federal National Mortgage Assn.,
5.25%, due 09/25/12 $ 423,098 $ 421,300
Federal National Mortgage Assn.,
5.75%, due 08/25/18 500,000 489,235
Federal National Mortgage Assn.,
6.50%, due 10/25/23 1,300,000 1,280,539
Government National Mortgage
Assn.,
7.50%, due 05/15/24 938,897 941,244
Government National Mortgage
Assn.,
7.50%, due 10/15/24 254,924 255,561
Private Export Funding Co.,
7.01%, due 04/30/04 2,000,000 2,044,240
Tennessee Valley Authority,
6.375%, due 06/15/05 500,000 489,180
U.S. Government -- RFCO,
0.00%, due 10/15/98 2,000,000 1,854,220
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $13,514,621) $ 13,538,502
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $19,513,410) -- 98.3% $ 19,563,792
OTHER ASSETS LESS LIABILITIES -- 1.7% 347,035
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 19,910,827
=========================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1997 is $19,513,410.
The following amounts are based on costs for federal income tax
purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 126,212
Aggregate gross unrealized depreciation (75,830)
----------
Net unrealized appreciation $ 50,382
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
74
<PAGE> 77
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMERCIAL PAPER -- 99.3%
- -------------------------------------------------------------------------
Aetna Casualty and Surety Co.,
5.55%, due 07/02/97 $3,500,000 $ 3,499,461
American Express Company,
5.53%, due 07/07/97 6,000,000 5,994,470
Asset-Backed Sec. Inv. Trust,
5.689%, due 07/15/97 5,000,000 5,011,850
Associates Corp. of North
America,
5.53%, due 07/11/97 1,200,000 1,198,157
Avco Financial Services, Canada
Ltd.,
5.65%, due 07/21/97 2,000,000 1,993,722
Avco Financial Services, Canada
Ltd.,
5.60%, due 08/18/97 1,500,000 1,488,800
Banc One Cleveland,
5.63%, due 07/03/97 4,000,000 4,003,085
Bell Atlantic Network Funding
Corp.,
5.63%, due 07/16/97 1,000,000 997,700
Capital One Funding Corp.,
5.63%, due 07/03/97 (a) 3,700,000 3,702,854
Chevron Oil Finance Co.,
5.40%, due 07/18/97 500,000 498,725
Chevron Transport Corp.,
5.54%, due 07/18/97 1,950,000 1,944,899
C.I.T. Group Holdings, Inc.,
5.47%, due 07/01/97 3,000,000 3,000,000
C.I.T. Group Holdings, Inc.,
5.58%, due 07/07/97 500,000 499,535
C.I.T. Group Holdings, Inc.,
5.53%, due 07/28/97 500,000 497,926
C.I.T. Group Holdings, Inc.,
5.55%, due 08/26/97 2,200,000 2,181,007
Commercial Credit Corp.,
5.52%, due 07/14/97 2,750,000 2,744,518
Conagra, Inc.,
5.72%, due 07/25/97 1,200,000 1,195,424
du Pont (E.I.) de Nemours & Co.,
5.54%, due 08/04/97 6,500,000 6,465,991
Enterprise Funding Corp.,
5.54%, due 07/11/97 1,500,000 1,497,692
Exxon Corp.,
5.50%, due 07/18/97 1,650,000 1,645,715
First National Bank of Chicago,
5.54%, due 07/23/97 3,000,000 2,989,843
First National Bank of Chicago,
5.554%, due 09/03/97 4,545,000 4,564,424
Ford Motor Credit Co.,
5.52%, due 07/07/97 100,000 99,908
Ford Motor Credit Co.,
5.52%, due 07/10/97 4,500,000 4,493,790
Ford Motor Credit Co.,
5.65%, due 08/05/97 2,000,000 1,989,014
General Electric Capital Corp.,
5.52%, due 07/25/97 1,250,000 1,245,400
General Electric Capital Corp.,
5.54%, due 07/28/97 100,000 99,585
General Electric Capital Corp.,
5.57%, due 07/29/97 500,000 497,834
General Electric Capital Corp.,
5.66%, due 08/18/97 5,330,000 5,289,777
General Motors Corp.,
5.53%, due 07/11/97 7,400,000 7,388,633
Goldman Sachs Group, L.P.,
5.52%, due 08/08/97 $7,000,000 6,959,214
Heller International,
5.68%, due 07/21/97 3,600,000 3,588,640
John Hancock Mutual Life Ins.,
5.60%, due 08/12/97 4,700,000 4,669,293
Lehman Brothers Inc.,
5.55%, due 07/15/97 6,500,000 6,485,971
Matsuschita Electric Ind.,
5.55%, due 07/14/97 2,000,000 1,995,992
Merrill Lynch and Co., Inc.,
5.58%, due 07/21/97 2,555,000 2,547,079
Merrill Lynch and Co., Inc.,
5.64%, due 08/04/97 900,000 895,206
Merrill Lynch and Co., Inc.,
5.59%, due 08/11/97 3,550,000 3,527,399
Metropolitan Life Insurance Co.,
5.62%, due 07/07/97 2,577,000 2,574,586
Morgan, J.P. & Co., Inc.,
5.50%, due 08/05/97 3,000,000 3,159,297
National Westminster Bank Canada,
5.61%, due 07/08/97 5,000,000 4,994,546
Nynex Corp.,
5.53%, due 07/24/97 2,400,000 2,391,521
Philip Morris Co.,
5.55%, due 08/11/97 7,000,000 6,955,754
Prudential Funding Corp.,
5.52%, due 07/10/97 7,500,000 7,489,650
Quebec Province Canada,
5.63%, due 07/17/97 2,000,000 1,994,996
Sanwa Business Credit,
6.15%, due 07/02/97 1,250,000 1,249,786
Sanwa Business Credit,
5.55%, due 07/15/97 250,000 249,460
Sanwa Business Credit,
5.58%, due 07/15/97 2,000,000 1,995,660
Sanwa Business Credit,
5.63%, due 07/25/97 3,000,000 2,988,740
Sears Roebuck Acceptance Corp.,
5.56%, due 07/08/97 5,950,000 5,943,568
Sears Roebuck Acceptance Corp.,
5.57%, due 07/28/97 450,000 448,120
Weyerhaeuser Mortgage Co.,
5.57%, due 07/18/97 1,400,000 1,396,318
Xerox Corp.,
5.57%, due 08/11/97 1,200,000 1,192,388
----------------
TOTAL COMMERCIAL PAPER
(COST $154,412,923) $ 154,412,923
- ------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.0%
- ------------------------------------------------------------------------
Federal Home Loan Bank,
5.85%, due 11/06/97
(cost $3,113,955) $3,000,000 $ 3,113,955
- ------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $157,526,878) -- 101.3% $ 157,526,878
OTHER ASSETS LESS LIABILITIES -- (1.3%) (2,008,466)
- ------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 155,518,412
========================================================================
</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 June 30, 1997.
Percentages are based on net assets.
75
<PAGE> 78
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<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)*.................... $ 2,555,447 $20,499,366 $ 40,507,522 $ 63,171,707
Cash.............................................. 87,153 90,267 37,451 20,729
Dividends receivable.............................. 1,591 31,447 0 0
Interest receivable............................... 0 536 518,225 1,125,703
Receivable for fund shares sold................... 360 1,466 6,979 29,105
Receivable for securities sold.................... 11,982 119,830 0 0
Prepaid expense................................... 167 1,174 1,911 2,862
---------- ----------- ----------- -----------
Total assets.......................................... 2,656,700 20,744,086 41,072,088 64,350,106
---------- ----------- ----------- -----------
LIABILITIES
Payable for fund shares redeemed.................. 524 5,662 44,715 181,373
Payable for securities purchased.................. 15,800 30,497 0 0
Accrued expenses:
Investment advisory fees..................... 882 7,006 13,937 21,881
Custodian fees............................... 301 855 89 1,975
Professional fees............................ 6,742 7,382 8,063 8,719
Miscellaneous fees........................... 226 1,983 4,280 6,574
---------- ----------- ----------- -----------
Total liabilities..................................... 24,475 53,385 71,084 220,522
---------- ----------- ----------- -----------
NET ASSETS............................................ $ 2,632,225 $20,690,701 $ 41,001,004 $ 64,129,584
========== =========== =========== ===========
Net assets consist of:
Capital stock -- $.01 par value................... $ 796 $ 8,288 $ 38,667 $ 52,155
Additional paid-in capital........................ 1,610,415 11,610,449 39,990,806 61,350,538
Undistributed net investment income............... 7,377 216,743 1,210,875 2,042,764
Undistributed/accumulated net realized gain (loss)
on investments.................................. 133,908 1,290,875 (256,861) (108,142)
Net unrealized appreciation of investments........ 879,729 7,564,346 17,517 792,269
---------- ----------- ----------- -----------
NET ASSETS............................................ $ 2,632,225 $20,690,701 $ 41,001,004 $ 64,129,584
========== =========== =========== ===========
Shares of capital stock outstanding................... 79,645 828,759 3,866,690 5,215,453
---------- ----------- ----------- -----------
Net asset value per share of outstanding capital
stock............................................... $ 33.05 $ 24.97 $ 10.60 $ 12.30
========== =========== =========== ===========
*Investments at cost.................................. $ 1,675,718 $12,935,020 $ 40,490,005 $ 82,379,438
<CAPTION>
GOVERNMENT
DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------
<S> <C> <C> <C>
ASSETS
Securities, at value (Note 2)*.................... $ 3,453,462 $ 19,563,792 $157,526,878
Cash.............................................. 27,016 43,265 40,234
Dividends receivable.............................. 1,368 0 0
Interest receivable............................... 4,791 126,047 27,594
Receivable for fund shares sold................... 12,459 194,639 1,768,119
Receivable for securities sold.................... 0 0 0
Prepaid expense................................... 438 276 4,530
---------- ----------- ------------
Total assets.......................................... 3,499,534 19,928,019 159,367,355
---------- ----------- ------------
LIABILITIES
Payable for fund shares redeemed.................. 737 1,508 3,769,183
Payable for securities purchased.................. 11,000 0 0
Accrued expenses:
Investment advisory fees..................... 1,185 6,655 54,355
Custodian fees............................... 0 455 756
Professional fees............................ 7,038 7,016 10,661
Miscellaneous fees........................... 362 1,558 13,988
---------- ----------- ------------
Total liabilities..................................... 20,322 17,192 3,848,943
---------- ----------- ------------
NET ASSETS............................................ $ 3,479,212 $ 19,910,827 $155,518,412
========== =========== ============
Net assets consist of:
Capital stock -- $.01 par value................... $ 1,826 $ 19,035 $ 1,555,184
Additional paid-in capital........................ 2,184,250 19,344,521 153,963,228
Undistributed net investment income............... 28,769 501,169 0
Undistributed/accumulated net realized gain (loss)
on investments.................................. 195,622 (4,280) 0
Net unrealized appreciation of investments........ 1,068,745 50,382 0
---------- ----------- ------------
NET ASSETS............................................ $ 3,479,212 $ 19,910,827 $155,518,412
========== =========== ============
Shares of capital stock outstanding................... 182,690 1,903,500 155,518,412
---------- ----------- ------------
Net asset value per share of outstanding capital
stock............................................... $ 19.04 $ 10.46 $ 1.00
========== =========== ============
*Investments at cost.................................. $ 2,384,717 $ 19,513,410 $157,526,878
</TABLE>
See notes to financial statements.
76
<PAGE> 79
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the six months ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<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........... $ 5,544 $ 13,919 $ 1,302,434 $2,181,181 $ 25,549 $ 544,053 $ 4,382,237
Dividends.......... 13,374 252,719 0 0 16,509 0 0
---------- ----------- ----------- ----------- ---------- ----------- ------------
Total
investment
income...... 18,918 266,638 1,302,434 2,181,181 42,058 544,053 4,382,237
---------- ----------- ----------- ----------- ---------- ----------- ------------
EXPENSES:
Investment advisory
fees (Note 3).... 4,685 38,734 79,808 123,175 6,689 35,442 316,020
Custodian fees..... 2,570 4,455 1,765 1,991 2,125 1,031 3,476
Professional
fees............. 3,986 4,075 4,248 4,406 3,991 4,210 5,421
Directors fees..... 166 1,454 3,180 4,906 268 1,231 10,636
Miscellaneous
fees............. 134 1,177 2,558 3,939 216 970 8,503
---------- ----------- ----------- ----------- ---------- ----------- ------------
Total
expenses.... 11,541 49,895 91,559 138,417 13,289 42,884 344,056
---------- ----------- ----------- ----------- ---------- ----------- ------------
Net investment income... 7,377 216,743 1,210,875 2,042,764 28,769 501,169 4,038,181
---------- ----------- ----------- ----------- ---------- ----------- ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
(NOTE 2):
Realized gain
(loss) from
security
transactions
(excluding
short-term
securities):
Proceeds from
sales....... 434,873 4,123,894 24,325,325 13,343,885 585,251 942,018 0
Cost of
securities
sold........ 295,837 2,843,999 24,481,912 13,190,811 382,266 936,782 0
---------- ----------- ----------- ----------- ---------- ----------- ------------
Net realized gain (loss)
on investments........ 139,036 1,279,895 (156,587) 153,074 202,985 5,236 0
Net increase (decrease)
in unrealized
appreciation of
investments........... 286,466 2,205,133 49,134 (766,730) 257,277 33,777 0
---------- ----------- ----------- ----------- ---------- ----------- ------------
Net realized and
unrealized gain (loss)
on investments........ 425,502 3,485,028 (107,453) (613,656) 460,262 39,013 0
---------- ----------- ----------- ----------- ---------- ----------- ------------
Net increase in net
assets resulting from
operations............ $ 432,879 $ 3,701,771 $ 1,103,422 $1,429,108 $ 489,031 $ 540,182 $ 4,038,181
========== =========== =========== =========== ========== =========== ============
</TABLE>
See notes to financial statements.
77
<PAGE> 80
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO
----------------------------- -----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 7,377 $ 12,501 $ 216,743 $ 506,646
Net realized gain (loss) on investments (Note 2)........... 139,036 186,510 1,279,895 1,744,115
Net increase (decrease) in unrealized appreciation of
investments.............................................. 286,466 183,439 2,205,133 1,057,847
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................... 432,879 382,450 3,701,771 3,308,608
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)............................. 68,260 0 774,467 34,413
Net realized gain from investment transactions (Note 4).... 133,214 0 1,471,218 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders...... 201,474 0 2,245,685 34,413
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares....................... 120,780 344,553 141,008 427,851
Proceeds from dividends reinvested......................... 201,474 0 2,245,685 34,413
Net asset value of shares redeemed......................... (76,103) (445,903) (1,724,425) (3,255,147)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions................................................. 246,151 (101,350) 662,268 (2,792,883)
---------- ---------- ----------- -----------
Net increase in net assets..................................... 477,556 281,100 2,118,354 481,312
Net assets beginning of period................................. 2,154,669 1,873,569 18,572,347 18,091,035
---------- ---------- ----------- -----------
Net assets end of period*...................................... $ 2,632,225 $ 2,154,669 $ 20,690,701 $ 18,572,347
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued..................................................... 3,989 12,546 5,986 20,290
Issued in reinvestment of dividends and distributions...... 7,139 0 104,451 1,654
Redeemed................................................... (2,433) (16,217) (73,871) (152,508)
---------- ---------- ----------- -----------
Net increase (decrease)................................ 8,695 (3,671) 36,566 (130,564)
========== ========== =========== ===========
*Including undistributed net investment income of: $ 7,377 $ 12,501 $ 216,743 $ 500,290
<CAPTION>
INTERMEDIATE TERM
BOND PORTFOLIO LONG TERM BOND PORTFOLIO
----------------------------- -----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income...................................... $ 1,210,875 $ 2,284,209 $ 2,042,764 $ 3,837,045
Net realized gain (loss) on investments (Note 2)........... (156,587) (66,206) 153,074 605,958
Net increase (decrease) in unrealized appreciation of
investments.............................................. 49,134 (844,291) (766,730) (4,731,783)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................... 1,103,422 1,373,712 1,429,108 (288,780)
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)............................. 2,284,209 0 3,837,045 0
Net realized gain from investment transactions (Note 4).... 0 0 0 0
----------- ----------- ----------- -----------
Total dividends and distributions to shareholders...... 2,284,209 0 3,838,045 0
----------- ----------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares....................... 6,068,757 11,119,965 8,683,048 20,808,063
Proceeds from dividends reinvested......................... 2,284,209 0 3,837,045 0
Net asset value of shares redeemed......................... (6,216,428) (9,968,257) (8,081,389) (20,438,355)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions................................................. 2,136,538 1,151,708 4,438,704 369,708
----------- ----------- ----------- -----------
Net increase in net assets..................................... 955,751 2,525,420 2,029,767 80,928
Net assets beginning of period................................. 40,045,253 37,519,833 62,098,817 62,017,889
----------- ----------- ----------- -----------
Net assets end of period*...................................... $ 41,001,004 $ 40,045,253 $ 64,129,584 $ 62,098,817
=========== =========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued..................................................... 570,010 1,048,172 708,229 1,693,456
Issued in reinvestment of dividends and distributions...... 221,552 0 327,953 0
Redeemed................................................... (580,279) (941,251) (657,311) (1,670,244)
----------- ----------- ----------- -----------
Net increase (decrease)................................ 211,283 106,921 378,871 23,212
=========== =========== =========== ===========
*Including undistributed net investment income of: $ 1,210,875 $ 2,284,209 $ 2,042,764 $ 3,837,045
</TABLE>
See notes to financial statements.
78
<PAGE> 81
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 28,769 $ 67,363 $ 501,169 $ 695,233
Net realized gain (loss) on investments (Note 2)............... 202,985 193,527 5,236 (9,516)
Net increase (decrease) in unrealized appreciation of
investments.................................................. 257,277 188,333 33,777 (170,310)
---------- ---------- ----------- -----------
Net increase in net assets resulting from operations............... 489,031 449,223 540,182 515,407
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)................................. 263,740 0 695,233 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders......... 263,740 0 695,233 0
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares........................... 110,383 329,611 5,029,177 12,146,445
Proceeds from dividends reinvested............................. 263,740 0 695,233 0
Net asset value of shares redeemed............................. (500,789) (670,322) (2,041,832) (4,834,445)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions..................................................... (126,666) (340,711) 3,682,578 7,312,000
---------- ---------- ----------- -----------
Net increase in net assets......................................... 98,625 108,512 3,527,527 7,827,407
Net assets beginning of period..................................... 3,380,587 3,272,075 16,383,300 8,555,893
---------- ---------- ----------- -----------
Net assets end of period*.......................................... $3,479,212 $3,380,587 $19,910,827 $16,383,300
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued......................................................... 6,064 19,825 480,705 1,180,708
Issued in reinvestment of dividends and distributions.......... 15,793 0 68,160 0
Redeemed....................................................... (27,089) (40,085) (194,533) (469,910)
---------- ---------- ----------- -----------
Net increase (decrease)................................... (5,232) (20,260) 354,332 710,798
========== ========== =========== ===========
*Including undistributed net investment income of: $ 28,769 $ 67,363 $ 501,169 $ 695,233
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
------------- -------------
(UNAUDITED)
<S> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 4,038,181 $ 5,905,585
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............... 4,038,181 5,905,585
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)................................. 4,038,181 5,905,585
----------- -----------
Total dividends and distributions to shareholders......... 4,038,181 5,905,585
----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares........................... 480,800,194 689,151,108
Proceeds from dividends reinvested............................. 4,038,181 5,905,585
Net asset value of shares redeemed............................. (474,252,122) (660,491,512)
----------- -----------
Net increase (decrease) in net assets resulting from share
transactions..................................................... 10,586,253 34,565,181
----------- -----------
Net increase in net assets......................................... 10,586,253 34,565,181
Net assets beginning of period..................................... $ 144,932,159 110,366,978
----------- -----------
Net assets end of period*.......................................... $ 155,518,412 $ 144,932,159
=========== ===========
SHARES ISSUED AND REDEEMED:
Issued......................................................... 480,800,194 689,151,108
Issued in reinvestment of dividends and distributions.......... 4,038,181 5,905,585
Redeemed....................................................... (474,252,122) (660,491,512)
----------- -----------
Net increase (decrease)................................... 10,586,253 34,565,181
=========== ===========
*Including undistributed net investment income of: $ 0 $ 0
</TABLE>
See notes to financial statements.
79
<PAGE> 82
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.
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
80
<PAGE> 83
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
3. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
Under an investment advisory agreement between the Fund and MONY Life
Insurance Company of America ("Investment Adviser" or "MONY America"), a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"), the Investment Adviser provides investment advice and related services
for each of the Fund's portfolios, administers the overall day-to-day affairs of
the Fund, bears all expenses associated with calculating net asset values of the
portfolios and compensates the directors, officers and employees of the Fund who
are affiliated with the Investment Adviser.
For these services, the Investment Adviser receives an investment
management fee. The fee is a daily charge equal to an annual rate of .40% of the
first $400,000,000 of the aggregate average daily net assets of the portfolios,
.35% of the next $400,000,000 of the aggregate average daily net assets of the
portfolios and .30% of the aggregate average daily net assets of the portfolios
in excess of $800,000,000. Each daily charge is dividend among the portfolios in
proportion to their net assets on that date. The Investment Adviser reimburses
the portfolios for investment management fees charged to the extent that any
portfolio's aggregate ordinary operating 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 six months ended June 30, 1997, the fees incurred
by the Fund were $604,553.
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 six months ended June 30, 1997, amounted to $21,841.
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 owned.
81
<PAGE> 84
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 June 30, 1997, 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 six months ended June 30,
1997 (unaudited) were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C> <C>
Equity Growth Portfolio................... Common Stock $ 425,737 $ 435,135
Equity Income Portfolio................... Common Stock 2,935,111 4,282,266
Intermediate Term Bond Portfolio.......... U.S. Government Obligations 16,457,199 23,408,520
Corporate Bonds 6,921,180 3,916,810
Long Term Bond Portfolio.................. U.S. Government Obligations 4,884,453 4,169,375
Corporate Bonds 11,861,560 9,174,514
Diversified Portfolio..................... Common Stock 342,382 585,371
Government Securities Portfolio........... U.S. Government Obligations 3,817,140 942,018
</TABLE>
82
<PAGE> 85
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
------------ ---------- ---------- ---------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25 $ 15.38
---------- ---------- ---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income............ 0.87 0.18 0.39 0.36 0.33 0.29 0.25
Net gains (losses) on investments
(both realized and
unrealized).................... 4.63 5.08 5.90 0.09 1.59 (0.46) 5.08
---------- ---------- ---------- ---------- ----------- ----------- -----------
Total from investment
operations................... 5.50 5.26 6.29 0.45 1.92 (0.17) 5.33
Less distributions
Dividends (from net investment
income)........................ (0.96) 0.00 (0.39) (0.36) (0.33) (0.29) (0.25)
Distributions (from realized
capital gains)................. (1.86) 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 0.00 (0.03) (0.04)
Distributions (in excess of
realized capital gain)......... 0.00 0.00 (0.04) 0.00 0.00 (0.04) 0.00
---------- ---------- ---------- ---------- ----------- ----------- -----------
Total distributions............ (2.82) 0.00 (1.77) (0.56) (0.90) (0.40) (0.46)
Net asset value, end of period..... $ 33.05 $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25
========== ========== ========== ========== =========== =========== ===========
Total return................... 43.83%+ 20.95% 30.54% 2.15% 9.71% (0.84%) 34.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.......... $2,632,225 $2,154,669 $1,873,569 $1,556,536 $58,963,456 $39,979,012 $26,219,999
Average commission rate............ $ 0.0377 $ 0.0330 N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets............... 0.31% 0.62% 1.54% 2.11% 1.79% 1.72% 2.09%
Ratio of expenses to average net
assets........................... 0.49% 1.22% 1.28% 0.53% 0.50% 0.53% 0.59%
Portfolio turnover rate............ 20.14% 44.17% 38.17% 55.09% 59.15% 39.93% 32.33%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------------------
1990 1989 1988 1987
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 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 period..... $ 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 period.......... $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>
- ---------------
+ Annualized
83
<PAGE> 86
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
------------ ----------- ----------- ----------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................. $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64 $ 12.70
-------- -------- -------- -------- ------- -------- --------
Income from investment
operations
Net investment income..... 0.63 0.64 0.69 0.64 0.52 0.59 0.64
Net gains (losses) on
investments (both
realized and
unrealized)............. 3.81 3.23 4.45 (0.51) 1.68 0.92 1.94
Total from investment
operations............ 4.44 3.87 5.14 0.13 2.20 1.51 2.58
-------- -------- -------- -------- ------- -------- --------
Less distributions
Dividends (from net
investment income)...... (1.00) (0.04) (0.65) (0.64) (0.52) (0.59) (0.64)
Distributions (from
realized capital
gains).................. (1.91) 0.00 (0.41) (0.39) (0.81) 0.00* 0.00*
-------- -------- -------- -------- ------- -------- --------
Total distributions..... (2.91) (0.04) (1.06) (1.03) (1.33) (0.59) (0.64)
Net asset value, end of
period.................... $ 24.97 $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64
======== ======== ======== ======== ======= ======== ========
Total return............ 46.71%+ 19.76% 33.12% 0.78% 14.14% 10.31% 20.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period... $20,690,701 $18,572,347 $18,091,035 $16,204,925 $151,330,311 $121,540,392 $118,114,947
Average commission rate..... $ 0.0668 $ 0.0593 N/A N/A N/A N/A N/A
Ratio of net investment
income to average net
assets.................... 1.11% 2.79% 3.54% 3.53% 3.22% 3.68% 4.46%
Ratio of expenses to average
net assets................ 0.26% 0.55% 0.56% 0.48% 0.46% 0.46% 0.49%
Portfolio turnover rate..... 15.59% 29.37% 26.80% 32.48% 28.48% 35.62% 25.84%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------
1990 1989 1988 1987
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period................. $ 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
period.................... $ 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 period... $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.
+ Annualized
84
<PAGE> 87
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, ---------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
------------ ----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................ $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69
-------- -------- -------- -------- ------- -------- --------
Income from investment
operations
Net investment income.... 0.32 0.62 0.63 0.60 0.47 0.59 0.77
Net gains (losses) on
investments (both
realized and
unrealized)............ (0.05) (0.23) 0.82 (0.76) 0.34 0.11 0.71
Total from investment
operations........... 0.27 0.39 1.45 (0.16) 0.81 0.70 1.48
-------- -------- -------- -------- ------- -------- --------
Less distributions
Dividends (from net
investment income)..... (0.63) 0.00 (0.63) (0.60) (0.47) (0.59) (0.77)
Distributions (from
realized capital
gains)................. 0.00 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 0.00 (0.18)
-------- -------- -------- -------- ------- -------- --------
Total distributions.... (0.63) 0.00 (0.63) (0.60) (0.63) (0.59) (0.95)
Net asset value, end of
period................... $ 10.60 $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22
======== ======== ======== ======== ======= ======== ========
Total return........... 5.53%+ 3.69% 14.82% (1.52%) 7.84% 6.85% 15.27%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period................... $41,001,004 $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................... 3.01% 5.88% 6.10% 5.66% 5.26% 6.24% 7.88%
Ratio of expenses to
average net assets....... 0.23% 0.48% 0.49% 0.52% 0.52% 0.53% 0.51%
Portfolio turnover rate.... 65.44% 33.59% 32.07% 25.41% 50.61% 62.27% 55.03%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1990 1989 1988 1987
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period................ $ 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
period................... $ 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
period................... $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.
+ Annualized
85
<PAGE> 88
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
------------ ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................... $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03
------------ ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.39 0.79 0.74 0.84 0.50 0.81
Net gains (losses) on investments
(both realized and unrealized)..... (0.14) (0.83) 2.41 (1.58) 1.09 0.16
Total from investment operations... 0.25 (0.04) 3.15 (0.74) 1.59 0.97
------------ ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.79) 0.00 (0.74) (0.84) (0.50) (0.74)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 0.00 (0.23) 0.00*
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 0.00 (0.07)
------------ ----------- ----------- ----------- ----------- -----------
Total distributions................ (0.79) 0.00 (0.74) (0.84) (0.73) (0.81)
Net asset value, end of period........ $ 12.30 $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19
============== ============= ============= ============= ============= =============
Total return....................... 4.69%+ (.31%) 30.04% (6.14%) 14.21% 8.79%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $64,129,584 $62,098,817 $62,017,889 $44,012,329 $63,044,619 $29,564,159
Ratio of net investment income to
average net assets................... 3.29% 6.40% 6.58% 6.45% 5.69% 7.71%
Ratio of expenses to average net
assets............................... 0.22% 0.46% 0.48% 0.49% 0.48% 0.51%
Portfolio turnover rate............... 22.33% 59.78% 79.45% 110.19% 45.93% 0.17%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------
1991 1990 1989 1988 1987
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................... $ 10.47 $ 10.70 $ 9.97 $ 10.28 $ 12.87
----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.72 0.90 0.96 0.96 0.92
Net gains (losses) on investments
(both realized and unrealized)..... 1.12 (0.23) 0.73 (0.10) (1.11)
Total from investment operations... 1.84 0.67 1.69 0.86 (0.19)
----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.72) (0.90) (0.96) (1.17) (1.58)
Distributions (from realized capital
gains)............................. (0.37) 0.00 0.00 0.00 (0.82)
Distributions (from additional
paid-in capital)................... (0.19) 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
Total distributions................ (1.28) (0.90) (0.96) (1.17) (2.40)
Net asset value, end of period........ $ 11.03 $ 10.47 $ 10.70 $ 9.97 $ 10.28
============= ============= ============= ============= =============
Total return....................... 17.57% 6.26% 16.95% 8.37% (1.48%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $23,207,734 $20,532,817 $20,770,552 $23,840,760 $26,798,016
Ratio of net investment income to
average net assets................... 8.12% 8.72% 8.54% 9.04% 8.44%
Ratio of expenses to average net
assets............................... 0.51% 0.53% 0.64% 0.54% 0.60%
Portfolio turnover rate............... 63.68% 27.49% 36.00% 42.79% 128.24%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
86
<PAGE> 89
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
------------ ---------- ---------- ---------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13
------------ ---------- ---------- ---------- ----------- -----------
Income from investment operations
Net investment income........... 0.19 0.36 0.43 0.38 0.37 0.42
Net gains (losses) on
investments (both realized and
unrealized)................... 2.38 1.91 3.03 (0.24) 1.01 (0.29)
------------ ---------- ---------- ---------- ----------- -----------
Total from investment
operations.................. 2.57 2.27 3.46 0.14 1.38 0.13
------------ ---------- ---------- ---------- ----------- -----------
Less distributions
Dividends (from net investment
income)....................... (0.39) 0.00 (0.43) (0.38) (0.37) (0.42)
Distributions (from realized
capital gains)................ (1.13) 0.00 (0.43) (0.09) (0.18) (0.20)
Distributions (in excess of
realized capital gain)........ 0.00 0.00 (0.02) 0.00 0.00* 0.00*
------------ ---------- ---------- ---------- ----------- -----------
Total distributions........... (1.52) 0.00 (0.88) (0.47) (0.55) (0.62)
------------ ---------- ---------- ---------- ----------- -----------
Net asset value, end of period... $ 19.04 $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64
============== ============ ============ ============ ============= =============
Total return................ 33.69%+ 14.44% 26.32% 1.03% 10.92% 0.99%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........ $3,479,212 $3,380,587 $3,272,075 $2,860,700 $34,076,498 $22,704,133
Average commission rate.......... $ 0.0443 0.0412 N/A N/A N/A N/A
Ratio of net investment income to
average net assets.............. 0.86% 2.02% 2.68% 3.19% 3.13% 3.68%
Ratio of expenses to average net
assets ......................... 0.40% 0.91% 0.95% 0.57% 0.53% 0.57%
Portfolio turnover rate.......... 11.45% 24.43% 27.69% 51.38% 28.98% 26.44%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------
1991 1990 1989 1988 1987
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 11.75 $ 12.27 $ 11.26 $ 11.00 $ 12.18
----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income........... 0.53 0.70 0.75 0.71 0.69
Net gains (losses) on
investments (both realized and
unrealized)................... 1.86 (0.40) 1.74 0.36 (0.21)
----------- ----------- ----------- ----------- -----------
Total from investment
operations.................. 2.39 0.30 2.49 1.07 0.48
----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)....................... (0.53) (0.71) (0.75) (0.70) (1.33)
Distributions (from realized
capital gains)................ (0.48) (0.11) (0.33) (0.73) (0.11)
Distributions (in excess of
realized capital gain)........ 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- -----------
Total distributions........... (1.01) (0.82) (1.48) (0.81) (1.66)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period... $ 13.13 $ 11.75 $ 12.27 $ 11.26 $ 11.00
============= ============= ============= ============= =============
Total return................ 20.34% 2.44% 22.11% 9.73% 3.94%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........ $16,829,653 $10,373,263 $12,319,454 $16,050,117 $13,039,577
Average commission rate.......... N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets.............. 4.72% 6.04% 5.86% 6.10% 5.35%
Ratio of expenses to average net
assets ......................... 0.60% 0.63% 0.67% 0.62% 0.75%
Portfolio turnover rate.......... 22.03% 11.49% 8.06% 4.46% 12.31%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
87
<PAGE> 90
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, ---------------------------------------------------------
1997 1996 1995 1994 1993
------------ ----------- ---------- ---------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 10.58 $ 10.21 $ 9.51 $ 9.72 $ 9.66
------------ ----------- ---------- ---------- -----------
Income from investment operations
Net investment income........................... 0.24 0.45 0.34 0.05 0.52
Net gains (losses) on investments (both realized
and unrealized)............................... 0.06 (0.08) 0.70 (0.21) 0.27
------------ ----------- ---------- ---------- -----------
Total from investment operations.............. 0.30 0.37 1.04 (0.16) 0.79
Less distributions
Dividends (from net investment income).......... (0.42) 0.00 (0.34) (0.05) (0.52)
Distributions (from realized capital gains)..... 0.00 0.00 (0.00)* 0.00 (0.21)
Distributions (in excess of realized capital
gains)........................................ 0.00 0.00 (0.00) 0.00 0.00*
------------ ----------- ---------- ---------- -----------
Total distributions........................... (0.42) 0.00 (0.34) (0.05) (0.73)
Net asset value, end of period.................... $ 10.46 $ 10.58 $ 10.21 $ 9.51 $ 9.72
============ ============ ========== ========== ============
Total return.................................. 6.00%+ 3.62% 10.89% (2.68%)+++ 8.18%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......................... $19,910,827 $16,383,300 $8,555,893 $1,204,231 $20,036,097
Ratio of net investment income to average net
assets.......................................... 2.80% 5.59% 6.10% 5.43%+++ 5.06%
Ratio of expenses to average net assets........... 0.24% 0.55% 0.74% 0.57%+++ 0.53%
Portfolio turnover rate........................... 5.76% 12.52% 0.28% 7.82% 41.01%
<CAPTION>
FOR THE PERIOD
FOR THE YEARS MAY 1, 1991**
ENDED THROUGH
DECEMBER 31, DECEMBER 31,
1992 1991
----------- --------------
<S> <C> <C>
Net asset value, beginning of period.............. $ 10.70 $ 10.00
----------- --------------
Income from investment operations
Net investment income........................... 1.00 0.27
Net gains (losses) on investments (both realized
and unrealized)............................... (0.25) 0.70
----------- --------------
Total from investment operations.............. 0.75 0.97
Less distributions
Dividends (from net investment income).......... (1.00) (0.27)
Distributions (from realized capital gains)..... (0.79) 0.00
Distributions (in excess of realized capital
gains)........................................ 0.00 0.00
----------- --------------
Total distributions........................... (1.79) (0.27)
Net asset value, end of period.................... $ 9.66 $ 10.70
============ ==============
Total return.................................. 7.01% 9.70%++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......................... $19,096,791 $ 42,235,195
Ratio of net investment income to average net
assets.......................................... 6.25% 5.75%+
Ratio of expenses to average net assets........... 0.50% .43%+
Portfolio turnover rate........................... 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.
88
<PAGE> 91
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
------------ ------------ ------------ ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.03 0.05 0.05 0.04 0.03 0.03
Less distributions
Dividends (from net investment
income)............................ (0.03) (0.05) (0.05) (0.04) (0.03) (0.03)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============== ============= ============= =============
Total return......................... 5.16%+ 5.00% 5.50% 3.82% 2.75% 3.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $155,518,412 $144,932,159 $110,366,978 $83,352,731 $65,474,860 $50,892,593
Ratio of net investment income to
average net assets................... 2.61% 4.95% 5.30% 3.77% 2.62% 3.17%
Ratio of expenses to average net
assets............................... 0.22% 0.45% 0.46% 0.49% 0.46% 0.48%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------
1991 1990 1989 1988 1987
----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ---------- ----------
Income from investment operations
Net investment income................ 0.06 0.07 0.08 0.07 0.05
Less distributions
Dividends (from net investment
income)............................ (0.06) (0.07) (0.08) (0.07) (0.05)
----------- ----------- ----------- ---------- ----------
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= =========== ===========
Total return......................... 5.60% 7.22% 8.20% 6.56% 5.34%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $34,642,974 $26,924,389 $10,817,523 $4,552,241 $2,883,644
Ratio of net investment income to
average net assets................... 5.80% 7.63% 8.06% 6.77% 5.36%
Ratio of expenses to average net
assets............................... 0.54% 0.54% 0.92% 1.08% 1.50%
</TABLE>
- ---------------
+ Annualized
89
<PAGE> 92
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. Weigal 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>
90
<PAGE> 93
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
For the first six months of 1997, the Portfolio provided a total return of
14.35%, trailing the 20.61% return of the S&P 500, an unmanaged index of 500 of
the largest corporations weighted by market capitalization. For the 12 months
ended June 30, 1997, the Portfolio provided a total return of 28.39%, trailing
the 34.70% return of the S&P 500. For the five years ended June 30, 1997, the
Portfolio's average annual total return was 20.34%, ahead of the 19.78% annual
return of the S&P 500 for the period. Since inception on August 1, 1988 through
June 30, 1997, the Portfolio has generated an average annual total return of
17.46%, trailing the 17.56% annual return of the S&P 500.
The Equity Portfolio owns a diverse group of large capitalization and mid
capitalization stocks. Many of the companies owned by the Portfolio are in
seemingly mundane businesses, yet their leadership positions permit them to earn
high and improving returns on capital. Caterpillar, Inc. (earth moving equipment
and diesel engines) is a low cost, high quality producer worldwide and its
service network represents a formidable barrier to entry by competitors.
LucasVarity PLC (auto components and small diesel engines) has strong worldwide
market positions and significant cost cutting and marketing opportunities as a
result of the recent combination of two predecessor companies. Dover Corporation
(diversified industrial products) enjoys a return on invested capital of nearly
30% in its eclectic portfolio of companies with leading market shares in niche
businesses. In each of these companies, management has focused on maximizing
cash flow returns on capital and using that cash flow to create wealth for
shareholders, such as by investing in high return business opportunities or
repurchasing shares.
The Portfolio maintained a relatively defensive investment posture
throughout 1997. Investments were allocated 81% to common stocks and 19% to cash
and cash equivalents at June 30, 1997. The Portfolio's above average cash
position is a buffer against market volatility and, more importantly, provides a
resource to purchase quality stocks as they become available at attractive
prices. At the end of June, the Portfolio's five largest equity positions were
EXEL Ltd., ACE Ltd., Caterpillar Inc., Tenet Healthcare Corporation and Lockheed
Martin Corporation. Major industry positions were in insurance, machinery,
aerospace, banking and transportation.
The Portfolio continues to invest in businesses that are worth inherently
more, in our judgment, than their asking prices. We hope to preserve the
Portfolio's capital in all market conditions, including market corrections,
because we have maintained our value price discipline and because the businesses
in which the Portfolio invests tend to generate excess cash, which becomes more
valuable in difficult markets.
Even when a business that meets our criteria is identified, including high
sustainable returns on capital, we are very conscious about not paying too much
for the company's stock. Buying stocks at reasonable valuations is very
important, since the price paid should be low enough to offer both significant
opportunity for investment profit and meaningful protection against a severe
price decline. This focus on value and long term perspective is a tremendous
advantage in a stock market which is driven by transitory considerations.
In general, we find the stock market to be fully valued at this time.
However, we are not market timers and do not have an opinion as to whether the
market will be higher or lower a month from now than it is today. We buy
individual stocks, not the market. Using above average cash reserves, we will be
opportunistic in buying stocks we like when we can get them at favorable prices.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
91
<PAGE> 94
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 80.27% PRINCIPAL AMOUNT VALUE
----------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 5.75%
AlliedSignal Inc. 45,920 $ 3,857,280
Lockheed Martin Corporation 124,000 12,841,750
McDonnell Douglas Corporation 110,506 7,569,661
-----------
24,268,691
AUTOMOTIVE -- 2.52%
LucasVarity PLC (ADR) 307,000 10,629,875
BANKING -- 5.55%
Citicorp 90,544 10,916,211
Wells Fargo & Company 46,362 12,494,559
-----------
23,410,770
CABLE -- 1.37%
Tele-Communications Inc.* 390,000 5,801,250
CHEMICALS -- 2.95%
Du Pont (E. I.) de Nemours &
Company 120,000 7,545,000
Hercules Inc. 102,202 4,892,921
-----------
12,437,921
CONGLOMERATES -- 3.30%
General Electric Company 91,088 5,954,878
Textron Inc. 120,000 7,965,000
-----------
13,919,878
CONSUMER PRODUCTS -- 2.22%
Avon Products Inc. 72,756 5,133,845
Mattel Inc. 124,875 4,230,141
-----------
9,363,986
DRUGS & MEDICAL PRODUCTS -- 3.42%
Becton, Dickinson & Company 186,158 9,424,249
Warner-Lambert Company 40,252 5,001,311
-----------
14,425,560
ELECTRONICS -- 1.59%
Adaptec Inc. 85,000 2,953,750
Arrow Electronics Inc.* 70,462 3,743,294
-----------
6,697,044
ENERGY -- 1.04%
Triton Energy Ltd.* 96,004 4,398,183
HEALTH CARE -- 3.23%
Tenet Healthcare Corporation* 460,700 13,619,444
INSURANCE -- 22.96%
ACE Ltd. 276,000 20,389,500
AFLAC Inc. 185,128 8,747,298
American International Group
Inc. 25,612 3,825,792
Everest Reinsurance Holdings 175,000 6,934,375
EXEL Ltd. 391,348 20,643,607
General Re Corporation 67,000 12,194,000
Mid Ocean Ltd. 170,000 8,914,375
Progressive Corporation (Ohio) 76,421 6,648,627
Renaissance Holdings Ltd. 225,000 8,578,125
-----------
96,875,699
MACHINERY -- 6.29%
Caterpillar Inc. 153,000 16,428,375
Dover Corporation 65,000 3,997,500
Tenneco Inc. 135,000 6,100,312
-----------
26,526,187
MISC. FINANCIAL SERVICES -- 4.81%
Countrywide Credit Industries
Inc. 316,088 9,857,995
Federal Home Loan Mortgage
Corporation 304,180 10,456,187
-----------
20,314,182
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 0.39%
Champion International
Corporation 30,000 $ 1,657,500
PRINTING & PUBLISHING -- 1.74%
Donnelley R R & Sons Company 200,000 7,325,000
RESTAURANTS -- 2.04%
McDonalds Corporation 178,000 8,599,625
RETAIL -- 2.18%
May Department Stores Company 194,712 9,200,142
TELECOMMUNICATIONS -- 1.63%
Sprint Corporation 131,000 6,893,875
TRANSPORTATION -- 5.15%
AMR Corporation* 69,000 6,382,500
Canadian Pacific Limited 235,000 6,682,813
Carnival Corporation 210,000 8,662,500
-----------
21,727,813
UTILITIES -- 0.14%
El Paso Natural Gas Company 11,160 613,800
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $224,688,204) 338,706,425
- ----------------------------------------------------------------------------
COMMERCIAL PAPER -- 14.17%
- ----------------------------------------------------------------------------
American Express Credit
Corporation, 5.53% due
07/23/97 10,000,000 9,966,206
Ford Motor Credit Company 5.52%
due 07/16/97 10,000,000 9,977,000
Deere (John) Capital Corporation
5.53% due 07/16/97 15,000,000 14,965,437
Household Finance Corporation
5.51% due 07/14/97 10,000,000 9,980,103
IBM Credit Corporation 5.54% due
08/07/97 15,000,000 14,914,591
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $59,803,337) 59,803,337
- ----------------------------------------------------------------------------
SHORT TERM GOVERNMENT SECURITIES -- 2.13%
- ----------------------------------------------------------------------------
Federal National Mortgage
Association Discount Notes
5.42% due 07/02/97 9,000,000 8,998,645
-----------
TOTAL SHORT TERM GOVERNMENT SECURITIES
(IDENTIFIED COST $8,998,645) 8,998,645
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.93%
- ----------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 5.00% due 07/01/97
Collateral: U.S. Treasury Note
$12,680,000, 4.75% due
10/31/98 Value $12,587,652 12,340,000 12,340,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $12,340,000) 12,340,000
TOTAL INVESTMENTS
- ----------------------------------------------------------------------------
(IDENTIFIED COST $305,830,186) $ 419,848,407
OTHER ASSETS LESS LIABILITIES -- 0.50% 2,108,219
-----------
NET ASSETS 100% $ 421,956,626
============================================================================
</TABLE>
(*) Non-income producing security
(ADR) American Depository Receipts
See accompanying notes to financial statements.
92
<PAGE> 95
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
GAMCO INVESTORS, INC.
RYE, NEW YORK
For the six months ended June 30, 1997, the Small Cap Portfolio had a total
return of 23.10%, ahead of the total return of 10.21% of the Russell 2000 Index.
This is an unmanaged index composed of small stocks traded on the NASDAQ, the
New York and American Stock Exchanges. The Portfolio return for the 12 months
ended June 30, 1997, was 24.62%, which exceeded the 16.33% return of the Russell
2000 Index. For the five years ended June 30, 1997, the Portfolio's average
annual total return was 15.74% versus the 17.88% return of the Russell 2000
Index. Since inception on August 1, 1988 through June 30, 1997, the Small Cap
Portfolio had an average annual total return of 15.44% compared with 13.51% for
the Russell 2000 Index.
In the first half of 1997, the sun, moon and stars all came into alignment
in the form of modest economic growth, low inflation and strong corporate
earnings. The Federal Reserve and corporate managements have reduced economic
volatility while establishing more modest but sustainable economic growth. The
billions of new consumers in the global marketplace have added extra secular
growth to the economy, perhaps diluting the cyclical effects of prior economic
policy. Inflation is not dead, but it is certainly subdued.
Among the best performers in the Portfolio during the first six months of
1997 was Cablevision Systems Corporation, up 76%. News Corporation's Fox unit
purchased 40% of Cablevision's Rainbow cable network and programming unit. Cable
stocks received another positive jolt when Microsoft's Bill Gates, recognizing
that cable lines were likely to continue to be the speediest data transmission
highway into the home, invested $1 billion in Comcast Corporation.
Another significant Portfolio gainer was International Family
Entertainment, Inc. (IFE), up 53%. News Corp. offered $35 per share for IFE.
Deals affecting Portfolio holdings, however, were not confined to the media and
entertainment industry. ITT Industries bought Goulds Pumps for $37 per share and
the bidding contest for Dynamics Corp. escalated to a $58 per share completed
offer for 50% by CTS Corporation.
Stock investors are reaping the benefits of the almost decade long cost
cutting efforts of corporate America. Management has restructured and technology
has contributed to enormous productivity gains. While the economy has chugged
along at a modest 3% to 4% growth rate for the past three years, corporate
earnings have grown double digits. One of the consequences of a slowing economy
may be corporate earnings growth below expectations. We are likely to see
disappointments and expect that investors will not be kind to companies
announcing earnings shortfalls.
The economy may turn out to be very good in 1997. The reservoir of growth
opportunities in Europe, Japan and Latin America may help United States exports.
On balance, modest growth over the next twelve months appears reasonable.
Inflation concerns center around labor, commodities and energy, since the United
States produces less and consumes more.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
93
<PAGE> 96
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 91.36% PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.11%
Ackerley Inc. 155,000 $ 1,743,750
Katz Media Group Inc.* 170,000 1,115,625
----------------
2,859,375
AEROSPACE -- 9.12%
Aeroquip Vickers, Inc. 25,000 1,181,250
Coltec Industries Inc.* 220,000 4,290,000
Curtiss Wright Corporation 31,500 1,834,875
Gencorp Inc. 275,000 6,359,375
Moog Inc.* 20,000 630,000
Sequa Corporation (Class B) 22,000 1,369,500
Sequa Corporation (Class A) 65,000 3,664,375
SPS Technologies Inc. 60,000 4,245,000
----------------
23,574,375
APPAREL & TEXTILES -- 0.51%
Fieldcrest Cannon Inc. 20,000 380,000
Hartmarx Corporation 115,000 948,750
----------------
1,328,750
AUTOMOTIVE -- 6.73%
Clarcor Inc. 125,000 3,093,750
Echlin Inc. 57,000 2,052,000
Federal Mogul Corporation 50,000 1,750,000
Modine Manufacturing Company 4,000 119,000
Navistar International
Corporation Inc.* 120,000 2,070,000
Scheib Earl Inc. 120,000 727,500
Standard Motor Products Inc. 160,000 2,200,000
Wynns International Inc. 190,000 5,391,250
----------------
17,403,500
BROADCASTING -- 16.36%
BET Holdings Inc.* 72,000 2,358,000
Chris Craft Industries Inc. 138,900 6,701,925
Echostar Communications
Corporation 27,000 421,875
Gaylord Entertainment Company 200,000 4,612,500
Gray Communications Systems Inc. 35,000 785,312
Gray Communications Systems Inc.
(Class B) 69,000 1,440,375
HSN Inc. 215,000 6,718,750
International Family
Entertainment Inc. 310,000 10,656,250
Lin Television Corporation* 25,000 1,103,125
Paxson Communications
Corporation 100,000 1,275,000
United International Holdings
Inc.* 50,000 518,750
United Television Inc. 57,500 5,692,500
----------------
42,284,362
CABLE -- 5.53%
AFC Cable Systems Inc.* 10,000 270,000
Cablevision Systems Corporation* 137,000 7,398,000
Century Communications
Corporation 38,000 204,250
Rogers Communications Inc 20,000 123,750
Tele-Communications Inc.* 265,000 6,293,750
----------------
14,289,750
CHEMICALS -- 1.55%
Church & Dwight Inc. 102,000 2,728,500
Lawter International Inc. 100,000 1,262,500
----------------
3,991,000
CONSUMER DURABLES -- 0.74%
Envirosource Inc.* 245,000 490,000
Noel Group 22,000 93,500
Oneida Ltd. 50,000 1,334,375
----------------
1,917,875
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
CONSUMER SERVICES -- 2.68%
Berlitz International Inc.* 35,000 $ 872,813
Rollins Inc. 205,000 4,125,625
Wackenhut Corporation 80,000 1,920,000
----------------
6,918,438
CONTAINERS/PACKAGING -- 0.04%
Kerr Group Inc. 25,000 96,875
ELECTRICAL EQUIPMENT -- 2.88%
Ametek Inc. 85,000 1,997,500
Corecom Inc. 85,000 1,466,250
Imo Industries Inc. 100,000 587,500
Thomas Industries Inc. 118,000 3,392,500
----------------
7,443,750
ELECTRONICS -- 1.21%
CTS Corporation 45,500 3,136,656
ENERGY -- 0.24%
Kaneb Services Inc.* 170,000 626,875
ENTERTAINMENT & LEISURE -- 4.89%
Aztar Corporation* 295,000 2,083,438
Churchill Downs Inc. 14,500 580,000
GC Companies Inc. 80,000 3,660,000
Jackpot Enterprises Inc. 196,000 2,229,500
Spectravision Inc. (Class B)*(a) 274,617 --
Spelling Entertainment Group
Inc. 260,000 1,787,500
Ticketmaster Group Inc. 137,500 2,285,937
----------------
12,626,375
FINANCE -- 1.07%
Pioneer Group Inc. 120,000 2,760,000
FOOD & BEVERAGES & TOBACCO -- 5.68%
Celestial Seasonings Inc.* 92,000 2,300,000
Chock Full O Nuts Corporation 150,000 1,096,875
Culbro Corporation* 48,500 6,750,594
Eskimo Pie Corporation 50,000 606,250
Tootsie Roll Industries Inc. 45,320 2,016,740
Whitman Corporation 75,000 1,898,437
----------------
14,668,896
FOREST PRODUCTS -- 0.05%
Griffin Land & Nurseries Inc. 10,000 140,000
HOTELS & RESTAURANTS -- 0.94%
Trump Hotels & Casino Resorts
Inc. 225,000 2,418,750
INSURANCE -- 1.18%
Danielson Holding Company 25,000 196,875
Liberty Corporation 70,000 2,852,500
----------------
3,049,375
MACHINERY -- 2.80%
Ampco Pittsburgh Corporation 50,000 734,375
Baldwin Technology Company Inc.* 100,000 300,000
Daniel Industries Inc. 15,000 231,563
Franklin Electric Inc. 20,000 995,000
Idex Corporation 35,000 1,155,000
Katy Industries Inc. 150,000 2,231,250
Kollmorgen Corporation 100,000 1,581,250
----------------
7,228,438
MANUFACTURING -- 2.12%
Crane Company 72,000 3,010,500
Mark IV Industries Inc. 30,000 720,000
Oil Dri Corporation of America 90,000 1,445,625
Tyler Corporation* 150,000 309,375
----------------
5,485,500
</TABLE>
94
<PAGE> 97
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
METALS & MINING -- 1.48%
Calmat Company 55,000 $ 1,182,500
Handy & Harman 110,000 1,911,250
Nortek Inc. 30,000 723,750
----------------
3,817,500
MISC. FINANCIAL SERVICES -- 1.42%
Data Broadcasting Corporation 100,000 475,000
Midland Company 64,000 3,200,000
----------------
3,675,000
PAPER PRODUCTS -- 0.65%
Greif Brothers Corporation 35,000 945,000
Nashua Corporation 68,500 744,938
----------------
1,689,938
PHARMACEUTICALS -- 2.81%
Carter Wallace Inc. 225,000 4,021,875
Ivax Corporation 290,000 3,244,375
----------------
7,266,250
PRINTING & PUBLISHING -- 3.83%
Lee Enterprises Inc. 80,000 2,110,000
Media General Inc. 100,000 4,000,000
Meredith Corporation 50,000 1,450,000
Nelson Thomas Inc. 25,000 346,875
Price Communications Corporation 75,000 656,250
Pulitzer Publishing Company 25,000 1,325,000
----------------
9,888,125
REAL ESTATE -- 1.79%
Catellus Development
Corporation* 170,000 3,081,250
Santa Anita Realty Enterprises
Inc. 50,000 1,553,125
----------------
4,634,375
RETAIL -- 4.69%
Brunos Inc.* 75,000 862,500
Burlington Coat Factory
Warehouse Corporation 70,000 1,365,000
General Host Corporation 80,000 275,000
Giant Foods Inc. 118,000 3,849,750
Lillian Vernon Corporation 41,000 691,875
Neiman Marcus Group Inc. 160,000 4,200,000
Phar Mor Inc.* 65,000 414,375
Ragan Brad Inc. 19,400 458,325
----------------
12,116,825
SECURITY & INVESTIGATION SERVICES -- 0.58%
Pittway Corporation 30,000 1,492,500
TELECOMMUNICATIONS -- 4.67%
Aerial Communications Inc. 130,000 1,105,000
Associated Group Inc.* 35,000 1,400,000
C Tec Corporation* 70,000 2,406,250
Centennial Cellular Corporation* 170,000 2,698,750
Comsat Corporation 100,000 2,381,250
Telephone & Data Systems Inc. 55,000 2,086,562
----------------
12,077,812
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
TRANSPORTATION -- 2.01%
GATX Corporation 90,000 $ 5,197,500
----------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $201,440,346) 236,104,740
- ----------------------------------------------------------------------------
U.S. TREASURY BILLS -- 9.67%
- ----------------------------------------------------------------------------
U.S. Treasury Bill
4.40% due 07/10/97 $ 2,010,000 2,007,789
U.S. Treasury Bill
4.50% due 07/03/97 700,000 699,825
U.S. Treasury Bill
4.53% due 07/17/97 1,000,000 997,987
U.S. Treasury Bill
4.63% due 07/03/97 5,280,000 5,278,642
U.S. Treasury Bill
4.66% due 07/10/97 4,370,000 4,364,909
U.S. Treasury Bill
4.70% due 07/24/97 2,000,000 1,993,994
U.S. Treasury Bill
4.72% due 07/17/97 1,000,000 997,902
U.S. Treasury Bill
4.74% due 07/31/97 1,818,000 1,810,819
U.S. Treasury Bill
4.78% due 07/24/97 1,500,000 1,495,419
U.S. Treasury Bill
4.83% due 07/24/97 3,000,000 2,990,743
U.S. Treasury Bill
4.90% due 07/24/97 1,973,000 1,965,922
U.S. Treasury Bill
4.98% due 08/07/97 402,000 399,942
----------------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $25,003,893) 25,003,893
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.50%
- ----------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.00% due 07/01/97
Collateral: U.S. Treasury Note
$1,245,000, 7.125%, due
02/15/23 Value $1,321,072 1,295,000 1,295,000
----------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $1,295,000) 1,295,000
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $227,739,239) $ 262,403,633
OTHER ASSETS LESS LIABILITIES -- (1.53)% (3,958,145)
----------------
NET ASSETS 100% $ 258,445,488
============================================================================
</TABLE>
(*) Non-income producing security
(a) In bankruptcy
See accompanying notes to financial statements.
95
<PAGE> 98
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
Enterprise Accumulation Trust Managed Portfolio's performance of 13.84% for
the six months ended June 30, 1997, trailed the 20.61% total return for the S&P
500. For the 12 months ended June 30, 1997, the portfolio's total return of
28.27% compared with 34.70% for the S&P 500. For the five years ended June 30,
1997, the Portfolio delivered an average annual total return of 21.32%
surpassing the 19.78% annual return for the S&P 500 for the period. Since the
Portfolio's inception on August 1, 1988, through June 30, 1997, its average
annual total return of 20.8% was above the 17.56% return of the S&P 500.
After a weak first quarter, the market took off during the second quarter,
rising relentlessly and confounding the skeptics along the way. What would have
been considered miraculous only a few years ago, low unemployment with low
inflation, has become recurring economic reality. In May, the jobless rate fell
to 4.8%, the lowest in 24 years. Defying standard economic theory that tight job
markets lead to inflation, the consumer price index subsided also, rising only
2.25 from a year earlier. When one stands back from the usual gyrations in
short-term economic data, there are few signs of disruption to this favorable
economic environment. If we were to worry, it would be about tightening labor
markets. Rising wage rates could boost inflation somewhat, but we believe that a
protracted problem with inflation can be caused only by too rapid growth of the
money supply.
We expect companies owned by the Portfolio to continue to improve their
results. The pending consummation of the merger of McDonnell Douglas Corporation
and Boeing Co. may enable McDonnell Douglas to perform well. In the coming
months, we expect E.I. Du Pont de Nemours & Company to announce a restructuring
which may spur its business performance. While the market has mistakenly, in our
view, neglected Citicorp stock much of this year, its business, particularly the
two-thirds generated by international operations, continues to surge. Moreover,
Citicorp continues to repurchase its shares at a very aggressive pace. Share
repurchases add value by reducing the number outstanding, making the remaining
shares worth more.
Our major disappointment this year is Wells Fargo & Company which has
encountered severe difficulties in its merger with First Interstate Bancorp,
completed in April 1996. We do not foresee a resolution of these issues before
year end. Fortunately, the company continues to repurchase its stock at a high
rate of approximately 7% to 8% per year. We continue to own the stock in
anticipation of superior returns over time.
At June 30, 1997, portfolio assets were allocated 88% to common stocks and
securities convertible into common stocks, 1% treasury notes and bonds and 11%
to cash and cash equivalents. The Portfolio's five largest equity positions at
June 30 were Wells Fargo, Citicorp, Federal Home Loan Mortgage Corporation,
McDonnell Douglas Corporation, and Mattel, Inc. Major industry positions
included the banking sector, miscellaneous financial services, machinery,
chemicals and insurance.
The Portfolio seeks to invest in businesses that are worth inherently more,
in our judgment, than their asking prices. We seek to preserve the Portfolio's
capital in all market conditions, including market corrections, because we
remain disciplined about not overpaying for stocks and because the businesses in
which we invest tend to generate excess cash which they use to create long-term
value for shareholders. We remain focused on individual companies where we try
to understand in what direction businesses are going over the next several
years. We are less concerned with predicting where the stock market is heading
in the next month.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
96
<PAGE> 99
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 87.34% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 5.42%
Loral Space & Communications* 600,000 $ 9,000,000
McDonnell Douglas Corporation 1,725,000 118,162,500
-----------------
127,162,500
BANKING -- 15.89%
BankBoston Corporation 750,000 54,046,875
Citicorp 1,025,000 123,576,562
First Empire State Corporation 100,000 33,700,000
Wells Fargo & Company 600,000 161,700,000
-----------------
373,023,437
CABLE -- 4.53%
Tele-Communications Inc.* 7,150,000 106,356,250
CHEMICALS -- 7.42%
Du Pont (E. I.) de Nemours &
Company 1,700,000 106,887,500
Hercules Inc. 1,000,000 47,875,000
Monsanto Company 450,000 19,378,125
-----------------
174,140,625
COMPUTER SOFTWARE -- 0.95%
Computer Associates
International Inc. 400,000 22,275,000
CONSUMER PRODUCTS -- 6.61%
Mattel Inc. 3,200,000 108,400,000
Nike Inc. 800,000 46,700,000
-----------------
155,100,000
DRUGS & MEDICAL PRODUCTS -- 3.07%
Becton, Dickinson & Company 1,425,000 72,140,625
ELECTRICAL EQUIPMENT -- 0.46%
Varian Associates Inc. 200,000 10,850,000
ELECTRONICS -- 0.46%
Unitrode Corporation* 214,000 10,780,250
ENERGY -- 0.97%
Triton Energy Ltd. 500,000 22,906,250
INSURANCE -- 7.04%
ACE Ltd. 700,000 51,712,500
EXEL Ltd. 1,800,000 94,950,000
Transamerica Corporation 200,000 18,712,500
-----------------
165,375,000
MACHINERY -- 7.51%
Caterpillar Inc. 800,000 85,900,000
Tenneco Inc. 2,000,000 90,375,000
-----------------
176,275,000
METALS & MINING -- 1.79%
Freeport McMoRan Copper & Gold
(Class B) 1,350,000 42,018,750
MISC. FINANCIAL
SERVICES -- 10.99%
American Express Company 600,000 44,700,000
Countrywide Credit Industries
Inc. 800,000 24,950,000
Federal Home Loan Mortgage
Corporation 3,450,000 118,593,750
Federal National Mortgage
Association 1,600,000 69,800,000
-----------------
258,043,750
PAPER & FOREST PRODUCTS -- 3.13%
Champion International
Corporation 1,330,000 73,482,500
REAL ESTATE -- 0.64%
Security Capital Group Inc.
(A) 11,908 14,988,453
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
RESTAURANTS -- 3.70%
McDonalds Corporation 1,800,000 $ 86,962,500
TECHNOLOGY -- 4.72%
Intel Corporation 350,000 49,634,375
National Semiconductor
Corporation* 2,000,000 61,250,000
-----------------
110,884,375
TRANSPORTATION -- 1.50%
Union Pacific Corporation 500,000 35,250,000
WASTE MANAGEMENT -- 0.54%
Waste Management Inc. 394,671 12,678,806
-----------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,314,324,639) 2,050,694,071
- --------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.02%
- --------------------------------------------------------------------------
RETAIL -- 0.02%
Venture Stores 32,922 518,521
-----------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,566,099) 518,521
- --------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 0.49%
- --------------------------------------------------------------------------
REAL ESTATE -- 0.49%
Security Capital Group Inc.
(A) 12.00% due 06/30/14 $ 9,560,323 11,394,674
-----------------
TOTAL CONVERTIBLE CORPORATE BONDS
(IDENTIFIED COST $9,175,554) 11,394,674
- --------------------------------------------------------------------------
COMMERCIAL PAPER -- 8.50%
- --------------------------------------------------------------------------
IBM Credit Corporation
5.48% due 07/02/97 50,000,000 49,992,389
IBM Credit Corporation 5.51%
due 07/14/97 50,000,000 49,900,514
Ford Motor Credit Company
5.53% due 07/28/97 50,000,000 49,792,625
Household Finance Corporation
5.50% due 07/09/97 50,000,000 49,938,889
-----------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $199,624,417) 199,624,417
- --------------------------------------------------------------------------
U.S. TREASURY BONDS -- 0.37%
- --------------------------------------------------------------------------
U.S. Treasury Bond
6.25% due 08/15/23 9,300,000 8,608,359
-----------------
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $8,678,157) 8,608,359
- --------------------------------------------------------------------------
U.S. TREASURY NOTES -- 0.54%
- --------------------------------------------------------------------------
U.S. Treasury Note
7.875% due 04/15/98 12,322,500 12,670,039
-----------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $12,356,851) 12,670,039
- --------------------------------------------------------------------------
SHORT TERM GOVERNMENT SECURITIES -- 0.30%
- --------------------------------------------------------------------------
Federal Home Loan Bank
Consolidated Dsc Note, 6.00%
due 07/01/97 7,102,000 7,102,000
-----------------
TOTAL SHORT TERM GOVERNMENT SECURITIES
(IDENTIFIED COST $7,102,000) 7,102,000
- --------------------------------------------------------------------------
</TABLE>
97
<PAGE> 100
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 2.33%
- --------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 5.00% due 07/01/97
Collateral: U.S. Treasury
Note $54,580,000, 5.875% due
01/31/99 Value $55,823,387 $54,725,000 $ 54,725,000
-----------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $54,725,000) 54,725,000
- --------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,607,552,717) $ 2,345,337,081
OTHER ASSETS LESS LIABILITIES -- 0.11% 2,481,050
-----------------
NET ASSETS 100% $ 2,347,818,131
==========================================================================
</TABLE>
(*) Non-income producing
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(A) Restricted securities as of June 30, 1997:
<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 $ 7,710,198 $ 9,822,047 0.42%
12/31/94-11/26/96 421,452 1.00 1.00 421,452 421,452 0.02%
11/26/96 859,005 1.08 1.20 926,399 1,033,670 0.04%
1/1/97 117,505 1.00 1.00 117,505 117,505 0.01%
Security Capital
Group, Inc. Common
Stock............. 3/7/94-11/26/96 11,908 $777.02-$1,128.06 $1,258.69 10,376,171 14,988,453 0.64%
----------- ----------- ------
$19,551,725 $26,383,127 1.13%
=========== =========== ======
</TABLE>
98
<PAGE> 101
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
BRINSON PARTNERS, INC.
CHICAGO, ILLINOIS
Over the first half of 1997, the International Growth Portfolio returned
12.89% versus the EAFE Index return of 11.21%. The EAFE Index is an unmanaged
index composed of stocks representing the stock markets of Europe, Australia and
the Far East. For the 12 months ended June 30, 1997, the Portfolio had a return
of 18.80% which exceeded the 12.84% EAFE return. Since November 30, 1994 through
June 30, 1997, the Portfolio returned 15.78% versus the EAFE Index return of
11.34%.
Returns for European markets during the first half of 1997 were led by
double digit returns in Switzerland, the Netherlands, Spain, Finland and
Germany. On the other side of the globe, Pacific region gains were more modest
due to negative returns in Malaysia and Singapore, offsetting part of the double
digit gain for Japan. Currencies declined on average relative to the U.S. dollar
with most of the depreciation occurring in European currencies.
The large overweight of the U.S. dollar during most of the first quarter
relative to the EAFE Index helped to protect the Portfolio from declines in
foreign currencies and added to Portfolio performance. Security selection,
particularly in Japan, also contributed to Portfolio returns. Japanese
exporters, including the electronics companies, were very strong due to the
weakness of the Japanese yen at the outset of the year. The Portfolio maintained
an overweight position in these stocks. In addition, the underweight position in
the weak Japanese financial stocks added value. Market allocation, however,
detracted from value primarily due to the Portfolio's cash position and
underweight in Switzerland.
Recent events in Europe have magnified the tensions within the European
Union as its members prepare for a single currency, leading us to reduce our
broad overweight in continental European equity markets in favor of southeast
Asia. Malaysia and Singapore appear to offer good relative value. Malaysia in
particular has been weak on the back of several factors: fears of a Thai-like
banking/currency crisis, the instigation of government measures to restrain
property speculation, and the slowdown of growth from double digit levels. We
believe that many of these fears have been overemphasized and have been
incorporated in the price of the market. Moreover, both the economy and the
stock market are undergoing a transformation, with the economy gaining from
diversification into more sophisticated, export-oriented products, such as
computer and electronic items. In addition, the stock market is benefiting from
ongoing privatizations.
The Portfolio's overall market weightings reflect the lack of significant
price/value discrepancies between the largest developed markets. The 3%
underweight in Japan is now the second largest, after Switzerland (-3.74%).
Given our fundamental and valuation analysis, the Japanese equity market remains
somewhat more overpriced than most of the other non-U.S. markets. Change is
urgently needed within Japan's banking sector and regulatory environment. The
Swiss market has performed extremely well for the last few years and does not
appear to offer relative value, despite the low level of interest rates there.
We are invested but quite underweight in Hong Kong, as we are concerned about
the heavy exposure to the overvalued property market and the sustainability of
the Hong Kong dollar/U.S. dollar peg in the longer term. Moreover, Hong Kong's
valuation is not attractive in our forward-looking cash flow discount model due
to the belief that the political and economic risks in China are being
underestimated, resulting in a higher discount rate than investors realize.
We continue to emphasize New Zealand and Australia and within Europe,
Germany, Belgium, Italy, the Netherlands and the United Kingdom. We are
neutrally positioned in Finland and Spain. The Portfolio has no investments in
Austria, Denmark, Norway or Sweden. The Portfolio continues to target a 5%
strategic cash position reflecting our view that most equity markets are
expensive.
Our industry strategies include a recently established overweight in
European steel stocks as many of these companies have been undergoing extensive
restructuring. Going forward, we expect to see a continuation of the current
trend toward consolidations and capacity reductions. Ultimately, this should
foster greater profitability, while ensuring that the best companies remain
state-of-the-art. We have been scaling back the Portfolio's overweighted
positions in European banks and Japanese electrical and electronic stocks due to
the strong performances of these sectors. The Portfolio continues to maintain a
large underweight in Japanese banks.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
99
<PAGE> 102
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 91.45% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 4.41%
Amcor Ltd. 18,500 $ 123,036
Boral Ltd. 30,400 95,805
Brambles Industries Ltd. 5,000 98,969
Broken Hill Proprietary 45,900 675,844
Coca Cola Amatil 9,000 116,990
CRA Ltd. 17,763 303,123
CSR Ltd. 21,000 81,417
David Jones Ltd. 85,000 118,842
Lend Lease Corporation 5,205 110,143
Mim Holdings Ltd. 56,215 83,270
National Australia Bank 30,000 430,097
News Corporation 62,042 297,740
Pacific Dunlop Ltd. 41,000 121,464
Qantas Airways Ltd. 39,590 92,753
Santos Ltd. 14,000 58,933
Westpac Bank Corporation 52,000 313,213
WMC Ltd. 27,000 170,384
Woolworths Ltd. 20,000 65,750
-----------
3,357,773
BELGIUM -- 2.93%
Bruxelles Lambert Groupe 950 159,213
Delhaize Le Lion 2,700 141,829
Electrabel 1,520 325,714
Fortis AG 1,578 325,863
Fortis AG (Rts)* 128 29
Generale De Banque 300 115,481
Generale De Banque (Wts)* 300 3,218
Kredietbank 570 229,711
Kredietbank(Vvpr) 13 5,131
Petrofina SA 775 293,479
Society General De Belgique 1,500 140,078
Solvay 260 153,196
Tractebel CAP 400 166,759
Union Miniere* 1,823 170,748
-----------
2,230,449
CANADA -- 2.69%
Alcan Aluminum Ltd. 4,100 139,839
Bank Montreal Quebec 3,500 136,609
Barrick Gold Corporation 2,500 54,401
BCE Inc. 4,200 117,397
Canadian National Railway
Company 2,600 113,342
Canadian Pacific Ltd. 9,300 264,666
Hudsons Bay Company 3,900 87,548
Imperial Oil Ltd. 3,400 174,192
Macmillan Bloedel Ltd. 5,400 74,101
Moore Corporation Ltd. 3,500 68,938
Noranda Inc. 3,900 84,018
Northern Telecom Ltd. 1,400 126,167
Nova Corporation Alberta 6,400 54,687
Royal Bank Canada Montreal
Quebec 4,200 190,239
Seagram Ltd. 3,300 132,626
Thomson Corporation 5,600 128,955
Transcanada Pipelines Ltd. 5,200 104,493
-----------
2,052,218
FINLAND -- 0.73%
Merita A Ltd. 15,300 50,973
Nokia (AB) Oy 4,100 306,271
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
Outokumpu Oy 2,600 $ 51,572
Pohjola 800 23,725
Rauma Oy 111 2,544
Sampo Vakuutusosak 300 29,175
Upm Kymmene Oy 4,000 92,437
-----------
556,697
FRANCE -- 6.16%
Accor 1,224 183,287
Alcatel Alsthom 1,876 234,951
Axa Uap 3,420 212,706
Axa Uap (Wts)* 2,120 8,225
Banque National Paris 6,300 259,646
Cie Bancaire 1,300 165,909
Cie De St Gobain 1,689 246,307
Cie De Suez 27,640 67,963
Colas 500 65,938
Credit Local de France 1,859 180,943
CSF Thomson 3,900 100,475
Danone 1,100 181,752
Eaux Cie General (Wts)* 2,369 1,419
Generale Des Eaux 1,369 175,414
Lafarge Coppee SA 1,500 93,292
Lagardere S.C.A. 3,700 107,474
LVMH Moet Hennessy 690 185,512
Lyonnaise Des Eaux SA 1,800 181,326
Michelin 3,928 235,879
Pechiney 3,759 148,078
Peugeot SA 2,325 224,718
Rhone Poulenc Act A 116 3,336
Rhone Poulenc SA 5,700 232,784
Seita 4,200 132,932
Societe Generale 1,955 218,231
Society Elf Aquitaine 2,820 304,232
Ste Generale 60 5,687
Total SA 2,527 255,422
Usinor Sacilor 15,600 281,382
-----------
4,695,220
GERMANY -- 8.19%
Allianz AG 2,730 571,326
BASF AG 7,400 273,453
Bayer AG 9,800 376,582
Bayer Motoren Werk 350 289,576
Commerzbank AG 8,050 228,009
Daimler Benz AG 3,550 288,014
Deutsche Bank AG 7,850 458,641
Deutsche Telekom 19,400 467,175
Hochtief AG 2,000 89,444
Hoechst AG 3,000 127,252
Manitoba AG 500 153,948
Mannesmann AG 720 320,761
Metro AG 2,280 249,818
Muenchener Ruckvers 123 344,860
Preussag AG 750 219,526
RWE AG 5,300 227,911
Schering AG 3,000 320,538
Siemens AG 3,450 204,832
Thyssen AG 1,200 284,158
Veba AG 6,450 362,422
Volkswagen AG 500 383,292
-----------
6,241,538
</TABLE>
100
<PAGE> 103
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
HONG KONG -- 1.28%
Cheung Kong Holdings 11,000 $ 108,618
China Light & Power 19,000 107,663
Guoco Group 10,000 52,664
Hang Seng Bank 7,000 99,841
Hong Kong Telecommunications 34,000 81,190
Hutchison Whampoa 22,000 190,260
New World Development Company 12,000 71,560
Sun Hung Kai Properties 6,000 72,219
Swire Pacific 12,000 108,038
Wharf Holdings 19,000 82,403
-----------
974,456
IRELAND -- 0.26%
Smurfit Jefferson 70,000 201,668
ITALY -- 2.89%
Assic Generali 13,870 252,171
Bca Comm Italiana 33,000 68,347
Credito Italiano 74,000 135,411
Danieli Di Risp 19,000 66,517
Edison 12,000 59,697
Eni (ADR) 3,300 187,687
Eni SPA 29,000 164,233
IMI 13,300 119,730
INA 75,000 114,294
Italgas 16,000 51,778
Mediobanca SPA 4,000 24,288
Montedison SPA 216,580 142,979
Rinascente 17,000 94,474
Rinascente (Wts)* 400 198
Rinascente Louisiana 22,000 53,525
SAI Di Risp 20,000 61,663
SIP 23,000 68,882
Telecom Italia Di Risp 123,000 243,529
Telecom Italia Mobile 36,000 116,500
Telecom Italia Mobile Di Risp 99,000 177,080
-----------
2,202,983
JAPAN -- 27.28%
Amada Company 32,000 281,975
Asahi Glass Company 38,000 377,945
Bank of Tokyo Mits 36,000 722,387
Canon Inc. 26,000 707,730
Canon Sales Company Inc. 11,000 256,238
Citizen Watch Company 29,000 223,661
Dai Nippon Printing 29,000 655,296
Daiichi Pharm Company 21,000 370,092
Daikin Kogyo 33,000 299,424
Daiwa House Industries 16,000 195,428
Fanuc 12,800 491,363
Fujitsu 19,000 263,567
Hitachi 63,000 703,542
Honda Motor Company 8,000 240,796
Inax Corporation 33,000 247,025
Isetan Company 11,000 136,276
Ito Yokado Company 12,000 696,214
Kaneka Corporation 37,000 231,775
Keio Teito Electric Railway 36,000 171,174
Kintetsu 40,000 244,285
Kirin Brewery Company 36,000 373,757
Kokuyo Company 10,000 270,459
Kuraray Company 39,000 387,890
Kyocera Corporation 3,600 285,814
Maeda Road Construction 7,000 60,155
Marui Company 17,000 315,913
Matsushita Electric Industrial
Indiana 47,000 947,217
Mitsubishi Paper 39,000 152,434
NGK 51,000 560,635
Nintendo Company 2,700 226,139
Nippon Denso 15,000 358,576
Nippon Meat Packer 20,000 258,245
Nippon Steel Corporation 30,000 95,795
Okumura Corporation 36,000 190,647
Osaka Gas Company 61,000 175,092
Sankyo Company 23,000 772,553
Sanwa Bank 16,000 237,306
Secom Company 8,000 586,983
Seino Transportation 21,000 227,185
Sekisui House 62,000 627,465
Shinmaywa Industries 13,000 91,529
Sony Corporation 7,200 627,534
Sumitomo Bank 34,000 557,669
Sumitomo Bank & Trust 19,000 203,891
Sumitomo Electric Industries 26,000 435,526
Takeda Chemical Industries 20,000 561,857
TDK Corporation 6,000 440,237
Tokio Marine & Fire 30,000 392,602
Tokyo Electric Power 8,900 187,131
Tokyo Steel Manufacturing 24,600 274,716
Tonen Corporation 23,000 276,915
Toray Industries Inc. 132,000 940,883
Toshiba Corporation 77,000 495,106
Toyo Suisan Kaisha 18,000 183,738
Toyota Motor Corporation 8,000 235,910
Yamazaki Baking Company 15,000 264,352
-----------
20,796,049
MALAYSIA -- 1.56%
Hume Industries 15,000 68,938
Kuala Lumpur Kepong 35,000 86,668
Land & General 45,000 51,704
Malayan Bank Berhad 18,000 188,986
Malaysia International Shipping 16,000 41,521
Nestle Malay Berhad 4,000 29,952
New Straits Times 3,000 17,591
Perusahaan Otomobl 5,000 23,376
Public Bank Berhad 33,000 51,513
Resorts World Berhad 17,000 51,189
Rothmans Pall Mall 3,000 29,477
Sime Darby Berhad 41,000 136,450
Telekom Malaysia 20,000 93,502
Tenaga Nasional 36,000 175,436
UMW Holdings Berhad 8,000 37,718
United Engineers Berhad 11,000 79,319
YTL Corporation 8,000 24,723
YTL Power International 800 1,008
-----------
1,189,071
NETHERLANDS -- 5.20%
ABN Amro Holdings NV 16,368 305,196
Akzo Nobel 500 68,521
DSM 1,100 109,445
Elsevier 14,800 247,308
Heineken NV 600 102,399
Ing NTFL 11,402 525,692
KLM 6,100 188,013
Kon Hoogovens & Staalf 1,862 103,776
KPN 9,363 367,289
Philips Electronic 5,300 379,632
Royal Dutch Petroleum 5,550 1,176,219
Unilever 1,870 393,644
-----------
3,967,134
</TABLE>
101
<PAGE> 104
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
NEW ZEALAND -- 3.25%
Brierley Investment Ltd. 425,000 $ 415,701
Carter Holt Harvey 146,000 377,839
Fletcher Challenge Building
Division 48,250 145,188
Fletcher Challenge Energy
Division 44,250 133,753
Fletcher Challenge Forest
Division 96,398 140,124
Fletcher Challenge Paper
Division 96,500 234,005
Telecom Corporation of New
Zealand 186,000 947,554
Telecom Corporation of New
Zealand (ADR) 2,000 81,500
-----------
2,475,664
SINGAPORE -- 1.44%
City Developments 9,000 88,130
DBS Lands 12,000 37,938
Development Bank Singapore 10,000 125,901
Fraser & Neave 2,000 14,269
Hotel Properties 23,000 39,092
Jardine Matheson 8,400 59,640
Keppel Corporation 4,000 17,766
Keppel Corporation (Class A) 1,000 4,337
Overseas Chinese Bank 18,600 192,544
Singapore Airlines 12,000 107,435
Singapore Press Holdings 6,000 120,864
Singapore Telecomm 55,000 101,560
United Overseas Bank 14,000 143,946
Wing Tai Holdings 15,000 43,226
-----------
1,096,648
SPAIN -- 2.09%
Acerinox SA 300 56,213
Banco Bilbao Vizcaya 1,900 154,347
Banco Central Hispanoamericano 2,370 86,694
Banco Popular 480 117,598
Banco Santander SA 4,500 138,649
Corporacion Mapfre 900 47,886
Empresa Nac Electricid 2,900 243,454
Fomento De Construcciones Y
Contra 700 89,264
Gas Natural SDG SA 500 109,230
Iberdrola SA 9,700 122,443
Repsol SA 2,000 84,561
Repsol SA (ADR) 1,000 42,437
Telefonica De Espana 6,900 199,484
Vallehermoso SA 1,600 43,162
Viscofan Envoltura 2,600 60,787
-----------
1,596,209
SWITZERLAND -- 1.92%
ABB AG Series A 50 75,685
Alusuisse Lonza Holdings 45 46,603
Ciba Specialty Chemicals* 203 18,770
CS Holding 700 89,897
Nestle SA 210 277,027
Novartis AG 258 412,447
Roche Holdings AG 29 262,291
Schw Ruckversicher 60 84,863
Schweizerische Bankgesellschaft 61 69,774
Zurich Verischerung 317 126,149
-----------
1,463,506
UNITED KINGDOM -- 19.17%
Abbey National 19,000 259,454
Bass 9,500 115,963
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
BAT Industries 64,200 $ 574,654
BG 128,000 468,949
Booker 13,000 59,751
British Energy 106,000 258,605
British Petroleum 57,572 716,184
British Steel 142,000 353,527
British Telecom 104,000 772,433
BTR 32,000 109,510
Centrica* 130,000 158,037
Charter 16,357 217,234
Coats Viyella 71,900 150,866
FKI 76,500 216,572
General Electric 135,900 812,469
Glaxo Holdings 47,200 976,633
Grand Metropolitan 33,000 317,640
Guinness 47,600 466,098
Hanson 35,650 176,917
Hillsdown Holdings 84,000 237,106
House of Fraser 90,000 239,054
HSBC Holdings 19,500 600,270
Imperial Chemical Industries 8,000 111,109
Inchcape 29,000 136,671
Legal & General 41,500 281,278
Lloyds TSB Group 72,264 742,506
Marks & Spencer 54,500 451,979
Mirror Group PLC 41,000 128,361
National Westminster Bank 17,700 238,017
Northern Foods 56,000 185,581
Peninsular and Oriental Steam 34,500 343,568
Reckitt & Colman 9,700 144,896
Redland 16,500 93,423
Reuters Holdings 21,000 221,368
RJB Mining 35,000 209,828
Royal Sun Alliance 48,005 354,946
Rtz Corporation 20,100 350,290
Sainsbury J 43,000 260,653
Scottish Hydro 21,400 147,895
Sears 120,000 135,889
Sedgwick Group 84,000 172,059
Smithkline Beecham 25,000 460,248
TESCO 34,000 210,061
Thames Water 24,000 275,774
Unilever 6,300 180,347
Vodafone Group 36,300 177,120
Williams Holdings 41,000 221,901
Yorkshire Water 18,000 117,803
-----------
14,611,497
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $61,346,523) 69,708,780
- -----------------------------------------------------------------------------
PREFERRED STOCK -- 0.50%
- -----------------------------------------------------------------------------
AUSTRALIA -- 0.08%
News Corporation 16,000 63,120
GERMANY -- 0.21%
Henkel Kgaa 2,800 158,936
ITALY -- 0.21%
Fiat SPA 86,000 158,887
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $365,402) 380,943
- -----------------------------------------------------------------------------
</TABLE>
102
<PAGE> 105
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
COMMERCIAL PAPER -- 7.63%
- -----------------------------------------------------------------------------
<S> <C> <C>
Bell Atlantic Network Funding
5.58% due 07/01/97 $ 741,000 $ 741,000
Bell Communications Resources
Inc., 6.20% due 07/01/97 1,487,000 1,487,000
Dun & Bradstreet Corporation
5.58% due 08/05/97 500,000 497,288
Dun & Bradstreet Corporation
5.60% due 08/05/97 600,000 596,733
Hercules Inc. 5.60% due 07/09/97 1,500,000 1,498,133
Mobil Australia Finance Company
5.53% due 07/21/97 1,000,000 996,928
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $5,817,082) 5,817,082
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $67,529,007) $ 75,906,805
OTHER ASSETS LESS LIABILITIES -- 0.42% 322,437
-----------
NET ASSETS 100% $ 76,229,242
=============================================================================
</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.
103
<PAGE> 106
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
CAYWOOD-SCHOLL CAPITAL MANAGEMENT
SAN DIEGO, CALIFORNIA
The Portfolio returned 5.70% for the six months ended June 30, 1997, while
the Lehman Brothers BB Index, an unmanaged index composed of all issues rated
below Baa by Moody's plus all issues rated BB by Standard & Poors, gained 5.71%
over the same period. For the 12 months ended June 30, 1997, the Portfolio
returned 16.05% in comparison to the 13.77% return of the Lehman BB Index during
the same period. Since November 30, 1994 through June 30, 1997, the High-Yield
Bond Portfolio had an average annual total return of 14.05% versus the Lehman BB
Index which returned 14.35%.
A strong stock market, which is typically good for the high-yield market,
served to lessen high-yield investors' credit concerns during the first half of
1997. Also, like the stock market, the high-yield market experienced a
significant increase in mutual fund inflows. The Portfolio's top performing
investments included Cemex SA, Mediq, Inc., Sprint Spectrum L.P. and Maxus
Energy Corporation. The Cemex SA and Maxus Energy bonds rallied in response to
improving emerging market fundamentals. Mediq had positive corporate events
which significantly reduced its credit risk. Sprint Spectrum bonds improved on
expectations that Sprint Corporation intends to increase their exposure to this
entity.
Looking ahead to the third quarter, we anticipate a stable to possibly
improving U.S. Treasury market. A moderate June labor report and the expectation
of minimal inflationary pressures, as demonstrated by stable to downward
trending gold and commodity prices, are supportive to current market conditions.
The stock markets may be influenced by earnings reports. Given the economy's
strength, most companies may meet investor expectations. As for the high-yield
market, new issues will continue to dominate. As long as cash flows remain
stable, we expect market technicals to maintain their favorable balance. As
always, we will emphasize selectivity in the investment process, looking for
those securities which offer the most attractive risk adjusted returns.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
104
<PAGE> 107
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
CORPORATE BONDS, CONVERTIBLE
SECURITIES & COMMON NUMBER OF SHARES OR
STOCKS -- 82.02% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
APPAREL & TEXTILES -- 1.85%
Brazos Sportswear Inc. 10.50% due
07/01/07 $ 400,000 $ 397,000
William Carter Company 10.375%
due 12/01/06 500,000 526,250
-----------
923,250
AUTOMOTIVE -- 0.92%
Speedy Muffler King Inc. 10.875%
due 10/01/06 450,000 457,875
BANKING -- 2.01%
DVI Inc. 9.875% due 02/01/04 450,000 458,438
Imperial Credit Industries Inc.
9.875% due 01/15/07 550,000 547,250
-----------
1,005,688
BROADCASTING -- 6.83%
American Radio Systems
Corporation, 9.00% due 02/01/06 600,000 612,000
Grupo Televisa S A 11.375% due
05/15/03 500,000 548,125
Grupo Televisa S A De C V 11.875%
due 05/15/06 100,000 112,625
Kabelmedia Holding Zero Coupon
due 08/01/06 450,000 276,188
Rogers Communications Inc. Zero
Coupon due 05/20/13 800,000 348,000
Rogers Communications Inc. 9.125%
due 01/15/06 200,000 202,500
Rogers Communications Inc.
10.875% due 04/15/04 300,000 314,625
TCI Satellite Entertainment Inc.
Zero Coupon due 02/15/07 350,000 206,062
TCI Satellite Entertainment Inc.
10.875% due 02/15/07 200,000 200,500
Telewest PLC Zero Coupon due
10/01/07 250,000 180,625
Telewest PLC 9.625% due 10/01/06 350,000 360,500
TV Azteca S A De C V 10.125% due
02/15/04 50,000 51,250
-----------
3,413,000
BUILDING & CONSTRUCTION -- 0.41%
Building Materials Corporation
America, 8.625% due 12/15/06 200,000 204,500
CABLE -- 3.56%
Century Communications
Corporation, 9.50% due 03/01/05 400,000 411,000
Comcast UK Cable LP Zero Coupon
due 11/15/07 700,000 526,750
TCI Communications Inc. 6.875%
due 02/15/06 900,000 842,364
-----------
1,780,114
CHEMICALS -- 3.92%
General Chemical Corporation
9.25% due 08/15/03 400,000 409,000
Pioneer Amers Acquisition
Corporation, 9.25% due 06/15/07 400,000 395,500
Polymer Group Inc. 9.00% due
07/01/07 500,000 491,955
Rexene Corporation 11.75% due
12/01/04 250,000 284,375
Texas Petrochemicals Corporation
11.125% due 07/01/06 350,000 376,250
-----------
1,957,080
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
CONSUMER PRODUCTS -- 6.90%
Drypers Corporation 10.25% due
06/15/07 $ 250,000 $ 248,750
E & S Holdings Corporation
10.375% due 10/01/06 450,000 471,375
French Fragrances Inc. 10.375%
due 05/15/07 350,000 360,500
Mediq Inc. 7.50% due 07/15/03 575,000 583,625
Ralphs Grocery Company 10.45% due
06/15/04 750,000 817,500
Ralphs Grocery Company 11.00% due
06/15/05 200,000 218,500
Randalls Food Markets Inc. 9.375%
due 07/01/07 400,000 398,000
Shoppers Food Warehouse
Corporation, 9.75% due 06/15/04 350,000 350,000
-----------
3,448,250
CONSUMER SERVICES -- 0.76%
Herff Jones Inc. 11.00% due
08/15/05 350,000 378,875
CONTAINERS/PACKAGING -- 5.32%
MVE Inc. 12.50% due 02/15/02 300,000 309,000
Owens Illinois Inc. 8.10% due
05/15/07 600,000 610,638
Plastic Containers Inc. 10.00%
due 12/15/06 100,000 103,750
Printpack Inc. 10.625% due
08/15/06 250,000 264,687
Stone Container Corporation
10.75% due 10/01/02 200,000 209,000
Stone Container Corporation
12.25% due 04/01/02 300,000 307,500
United States Can Corporation
10.125% due 10/15/06 800,000 852,000
-----------
2,656,575
ENERGY -- 3.12%
Clark USA Inc. 10.875% due
12/01/05 750,000 796,875
Maxus Energy Corporation 9.375%
due 11/01/03 500,000 533,125
Mesa Operating Company 10.625%
due 07/01/06 200,000 227,500
-----------
1,557,500
ENTERTAINMENT & LEISURE -- 2.52%
AMF Group Inc. 10.875% due
03/15/06 600,000 648,000
Coach USA Inc. 9.375% due
07/01/07 200,000 201,000
Cobblestone Golf Group Inc.
11.50% due 06/01/03 150,000 158,250
Coleman Escrow Corporation Zero
Coupon due 05/15/01 400,000 253,000
-----------
1,260,250
FINANCE -- 0.75%
Homeside Inc. 11.25% due 05/15/03 323,000 375,084
</TABLE>
105
<PAGE> 108
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
FOOD & BEVERAGES & TOBACCO -- 0.92%
Cott Corporation 9.375% due
07/01/05 $ 50,000 $ 52,375
North Atlantic Trading Inc.
11.00% due 06/15/04 350,000 355,250
RJR Nabisco Inc. 8.50% due
07/01/07 50,000 49,875
-----------
457,500
GAMING -- 0.78%
Trump Atlantic City Associates
11.25% due 05/01/06 400,000 391,000
HEALTH CARE -- 5.48%
Dade International Inc. 11.125%
due 05/01/06 350,000 389,375
Mariner Health Group Inc. 9.50%
due 04/01/06 200,000 209,000
Maxxim Medical Inc. 10.50% due
08/01/06 650,000 703,625
Quest Diagnostics Inc. 10.75% due
12/15/06 550,000 594,000
Tenet Healthcare Corporation
8.625% due 12/01/03 400,000 415,500
Twin Laboratories Inc. 10.25% due
05/15/06 400,000 423,000
-----------
2,734,500
HOTELS & RESTAURANTS -- 3.58%
AFC Enterprises Inc. 10.25% due
05/15/07 350,000 355,250
Boston Chicken Inc. 7.75% due
05/01/04 500,000 454,375
Foodmaker Corporation 9.75% due
11/01/03 250,000 252,500
H M H Properties Inc. 9.50% due
05/15/05 450,000 470,812
Hammon John Q. Hotels 8.875% due
02/15/04 250,000 253,438
-----------
1,786,375
MACHINERY -- 1.25%
Idex Corporation 9.75% due
09/15/02 300,000 312,000
Mettler Toledo Inc. 9.75% due
10/01/06 300,000 314,250
-----------
626,250
METALS & MINING -- 3.68%
Kaiser Aluminum & Chemical
Corporation, 10.875% due
10/15/06 250,000 270,000
Kaiser Aluminum & Chemical
Corporation, 12.75% due
02/01/03 300,000 326,250
Oregon Steel Mills Inc. 11.00%
due 06/15/03 450,000 483,750
WCI Steel Inc. 10.00% due
12/01/04 500,000 517,500
Wheeling Pittsburgh Corporation
9.375% due 11/15/03 250,000 239,375
-----------
1,836,875
OIL SERVICES -- 0.62%
Pride Petroleum Services Inc.
9.375% due 05/01/07 $ 300,000 311,250
PAGING SERVICES -- 0.02%
Pagemart Nationwide Inc. 875 8,750
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 1.75%
Crown Paper Company 11.00% due
09/01/05 $ 300,000 $ 301,500
Four M Corporation 12.00% due
06/01/06 350,000 363,125
Maxxam Group Inc. 11.25% due
08/01/03 200,000 207,250
-----------
871,875
PUBLISHING -- 1.45%
Universal Outdoor Inc. 9.75% due
10/15/06 500,000 517,500
Von Hoffmann Press Inc. 10.375%
due 05/15/07 200,000 207,500
-----------
725,000
RETAIL -- 4.93%
Ann Taylor Inc. 8.75% due
06/15/00 200,000 202,000
Brown Group Inc. 9.50% due
10/15/06 300,000 308,250
Cole National Group Inc. 9.875%
due 12/31/06 650,000 684,125
Corporate Express Inc. 4.50% due
07/01/00 700,000 625,625
Michaels Stores Inc. 6.75% due
01/15/03 700,000 644,000
-----------
2,464,000
TELECOMMUNICATIONS -- 15.21%
American Communications Services
Inc., Zero Coupon due 11/01/05 $ 600,000 360,000
American Communications Services
Inc. (Wts)* 300 28,200
Brooks Fiber Properties Inc. Zero
Coupon due 11/01/06 $ 600,000 392,250
Brooks Fiber Properties Inc.
10.00% due 06/01/07 200,000 203,000
CCPR Services Inc. 10.00% due
02/01/07 650,000 650,812
Comcast Cellular Holdings Inc.
9.50% due 05/01/07 850,000 860,625
Echostar Communications
Corporation, Zero Coupon due
06/01/04 1,000,000 843,750
Globalstar L P/Globalstar
Capital, 11.375% due 02/15/04 450,000 453,375
Globalstar L P/Globalstar
Capital, 11.25% due 06/15/04 250,000 234,375
ICG Holdings Inc. Zero Coupon due
05/01/06 600,000 400,500
MFS Communications Inc. Zero
Coupon due 01/15/06 300,000 235,875
Nextel Communications Inc. Zero
Coupon due 08/15/04 200,000 154,500
Orion Network Systems Inc. 12.50%
due 01/15/07 (v) 600,000 348,000
Sprint Spectrum L P Zero Coupon
due 08/15/06 900,000 652,500
Sprint Spectrum L P 11.00% due
08/15/06 400,000 444,000
Teleport Communications Group
Zero Coupon due 07/01/07 700,000 504,875
</TABLE>
106
<PAGE> 109
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
Teleport Communications Group
9.875% due 07/01/06 $ 600,000 $ 637,500
Winstar Equipment Corporation
12.50% due 03/15/04 200,000 195,250
-----------
7,599,387
TRANSPORTATION -- 1.05%
Atlas Air Inc. 12.25% due
12/01/02 200,000 222,000
Eletson Holdings Inc. 9.25% due
11/15/03 300,000 303,750
-----------
525,750
UTILITIES -- 0.92%
Ferrellgas Partners L P 9.375%
due 06/15/06 300,000 309,000
Midland Funding Corporation I
10.33% due 07/23/02 139,853 150,692
-----------
459,692
WASTE MANAGEMENT -- 1.51%
Allied Waste North America Inc.
10.25% due 12/01/06 700,000 754,250
-----------
TOTAL CORPORATE BONDS, CONVERTIBLE SECURITIES & COMMON
STOCKS
(IDENTIFIED COST $39,778,941) 40,970,495
- -----------------------------------------------------------------------------
PREFERRED STOCK -- 0.67%
- -----------------------------------------------------------------------------
ELECTRONICS -- 0.67%
Qualcomm Financial Trust I 7,000 332,500
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $350,000) 332,500
- -----------------------------------------------------------------------------
FOREIGN BONDS -- 10.21%
- -----------------------------------------------------------------------------
BANKING -- 0.50%
Banco Nacional Common Ext 8.00%
due 07/18/02 $ 250,000 247,500
BASIC INDUSTRIES -- 1.97%
Cemex S A 12.75% due 07/15/06 850,000 982,812
BROADCASTING -- 0.56%
Grupo Televisa 11.875% due
05/15/06 250,000 281,563
CONTAINERS/PACKAGING -- 0.84%
Viacap Sa De Cv 11.375% due
05/15/07 400,000 419,500
GOVERNMENT BOND -- 4.03%
Argentina Rep 11.00% due 10/09/06 700,000 779,625
Mexico United Mexican States
9.875% due 01/15/07 500,000 531,875
Russian Federation 10.00% due
06/26/07 200,000 198,750
St. Petersburg Russia 9.50% due
06/18/02 500,000 500,625
-----------
2,010,875
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
OIL SERVICES -- 0.60%
Petroleos Mexicanos 9.00% due
06/01/07 $ 300,000 $ 301,875
PAPER & FOREST PRODUCTS -- 0.60%
Indah Kiat Finance Mautitius
Limited, 10.00% due 07/01/07 300,000 298,875
TRANSPORTATION -- 1.11%
Greater Beijing First Expressway
9.50% due 06/15/07 100,000 101,356
TFM S A Ce C V 10.25% due
06/15/07 150,000 152,437
Transportacion Maritima Mexica
10.00% due 11/15/06 300,000 302,250
-----------
556,043
TOTAL FOREIGN BONDS
(IDENTIFIED COST $4,959,843) 5,099,043
- -----------------------------------------------------------------------------
U.S. TREASURY BILLS -- 2.50%
- -----------------------------------------------------------------------------
U.S. Treasury Bill 4.81% due
09/04/97 250,000 247,829
U.S. Treasury Bill 4.92% due
07/03/97 250,000 249,931
U.S. Treasury Bill 5.05% due
07/03/97 250,000 249,930
U.S. Treasury Bill 5.11% due
07/03/97 250,000 249,929
U.S. Treasury Bill 5.13% due
07/03/97 250,000 249,929
-----------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $1,247,548) 1,247,548
- -----------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.34%
- -----------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.00% due 07/01/97
Collateral: U.S. Treasury Note
$2,165,000, 6.50% due 08/15/05
Value $2,216,127 2,170,000 2,170,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $2,170,000) 2,170,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $48,506,332) $ 49,819,586
OTHER ASSETS LESS LIABILITIES -- 0.26% 131,995
-----------
NET ASSETS 100% $ 49,951,581
=============================================================================
</TABLE>
(*) Non-income producing
(v) Variable interest rate security. Maturity date shown is the next interest
reset date.
See accompanying notes to financial statements.
107
<PAGE> 110
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1997
<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..................... $419,848,407 $262,403,633 $2,345,337,081 $ 75,906,805 $49,819,586
Foreign currency at value
(cost -- $565,473)...................... -- -- -- 563,974 --
Cash and other assets..................... 4,208 1,071 4,169 5,580 4,190
Receivable for foreign currency sold
(net)................................... -- -- -- 968,459 --
Receivable for investments sold........... 4,062,720 765,287 -- -- 870,438
Receivable for fund shares sold........... 529,420 498,967 2,949,927 208,681 214,224
Dividends receivable...................... 372,179 89,303 1,042,944 350,560 --
Interest receivable....................... 1,714 144 1,058,346 -- 833,372
------------ ------------ -------------- ----------- -----------
Total assets.................... 424,818,648 263,758,405 2,350,392,467 78,004,059 51,741,810
------------ ------------ -------------- ----------- -----------
LIABILITIES:
Payable for investments purchased......... 2,341,034 5,006,377 -- 1,644,972 1,734,793
Payable for fund shares redeemed.......... 180,855 103,858 891,381 27,142 15,997
Investment advisory fee payable........... 269,590 163,827 1,382,330 51,588 25,226
Other accrued expenses.................... 70,543 38,855 300,625 51,115 14,213
------------ ------------ -------------- ----------- -----------
Total liabilities............... 2,862,022 5,312,917 2,574,336 1,774,817 1,790,229
------------ ------------ -------------- ----------- -----------
NET ASSETS:
Accumulated paid-in capital............... 283,447,766 182,608,803 1,429,979,531 62,539,081 47,876,545
Accumulated undistributed net investment
income.................................. 7,030,527 2,326,700 47,022,275 1,060,394 --
Accumulated undistributed net realized
gain on investments..................... 17,460,112 38,845,591 133,031,961 3,280,801 761,782
Net unrealized appreciation on investments
and translation of foreign currencies
denominated amounts..................... 114,018,221 34,664,394 737,784,364 9,348,966 1,313,254
------------ ------------ -------------- ------------ -----------
Total Net Assets................ $421,956,626 $258,445,488 $2,347,818,131 $ 76,229,242 $49,951,581
============ ============ ============== ============ ===========
Fund shares outstanding................... 12,785,999 10,383,413 60,110,660 11,152,344 8,958,431
------------ ------------ -------------- ------------ -----------
Net asset value per share................. $33.00 $24.89 $39.06 $6.84 $5.58
====== ====== ====== ===== =====
INVESTMENTS AT COST....................... $305,830,186 $227,739,239 $1,607,552,717 $ 67,529,007 $48,506,332
</TABLE>
See accompanying notes to financial statements.
108
<PAGE> 111
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
FOR SIX MONTHS ENDED JUNE 30, 1997
<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................................ $2,332,775* $ 513,346 $ 13,321,417 $ 835,691* $ 13,260
Interest................................. 1,682,445 343,395 7,388,700 118,923 1,929,269
----------- ----------- ------------ ------------ ----------
Total............................... 4,015,220 856,741 20,710,117 954,614 1,942,529
----------- ----------- ------------ ------------ ----------
OPERATING EXPENSES:
Investment advisory fee.................. 1,422,911 848,034 7,615,352 261,200 122,534
Custodian and fund accounting fees....... 35,427 35,628 142,019 89,140 24,386
Reports and notices to shareholders...... 33,765 20,001 192,796 5,976 3,825
Trustees' fees and expenses.............. 8,561 7,618 28,200 5,633 5,426
Audit and legal fees..................... 11,002 10,067 40,120 6,992 6,707
Miscellaneous............................ 3,830 3,557 27,275 612 648
----------- ----------- ------------ ------------ ----------
Total operating expenses............ 1,515,496 924,905 8,045,762 369,553 163,526
----------- ----------- ------------ ------------ ----------
NET INVESTMENT INCOME (LOSS)...... 2,499,724 (68,164) 12,664,355 585,061 1,779,003
----------- ----------- ------------ ------------ ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NET:
Net realized gain on security
transactions........................... 4,841,944 10,060,240 46,325,949 1,668,481 460,749
Net realized loss on foreign currency
transactions........................... -- -- -- (37,380) --
Net realized loss on futures
transactions........................... -- -- -- -- (40,672)
----------- ----------- ------------ ------------ ----------
Net realized gain on investments......... 4,841,944 10,060,240 46,325,949 1,631,101 420,077
Net change in unrealized gain (loss) on
investments and translation of foreign
currencies denominated amounts......... 43,080,949 36,714,792 216,061,907 6,011,312 219,417
----------- ----------- ------------ ------------ ----------
Net realized and unrealized gain
(loss) on investments............. 47,922,893 46,775,032 262,387,856 7,642,413 639,494
----------- ----------- ------------ ------------ ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................... $50,422,617 $46,706,868 $275,052,211 $ 8,227,474 $2,418,497
=========== =========== ============ ============ ==========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Net of foreign taxes withheld of $21,109 and $126,629, respectively.
109
<PAGE> 112
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL CAP PORTFOLIO
------------------------------ ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................. $ 2,499,724 $ 4,530,803 $ (68,164) $ 2,416,759
Net realized gain on investments.............. 4,841,944 12,678,406 10,060,240 28,896,623
Net realized loss on futures.................. -- -- -- (900)
Net change in unrealized gain (loss) on
investments................................ 43,080,949 34,566,579 36,714,792 (12,857,423)
------------ ------------ ------------- ------------
Net increase in net assets resulting from
operations............................... 50,422,617 51,775,788 46,706,868 18,455,059
------------ ------------ ------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income......................... -- (983,203) -- (1,108,977)
Net realized gains............................ -- (3,099,385) -- (2,010,186)
------------ ------------ ------------- ------------
Total dividends and distributions to
shareholders.......................... -- (4,082,588) -- (3,119,163)
------------ ------------ ------------- ------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales....................... 96,863,875 141,947,982 37,782,888 53,086,228
Reinvestment of dividends and distributions... -- 4,082,588 -- 3,119,163
Cost of shares redeemed....................... (40,236,798) (46,779,501) (18,748,087) (44,898,602)
------------ ------------ ------------- ------------
Net increase in net assets from fund share
transactions............................... 56,627,077 99,251,069 19,034,801 11,306,789
------------ ------------ ------------- ------------
Total increase in net assets............. 107,049,694 146,944,269 65,741,669 26,642,685
NET ASSETS:
Beginning of year............................. 314,906,932 167,962,663 192,703,819 166,061,134
------------ ------------ ------------- ------------
End of year................................... $ 421,956,626 $314,906,932 $ 258,445,488 $192,703,819
============ ============ ============= ============
SHARES ISSUED AND REDEEMED:
Issued........................................ 3,227,920 5,377,143 1,722,979 2,712,554
Issued in reinvestment of dividends and
distributions.............................. -- 141,462 -- 154,261
Redeemed...................................... (1,353,945) (1,801,187) (869,237) (2,320,780)
------------ ------------ ------------- ------------
Net increase............................... 1,873,975 3,717,418 853,742 546,035
============ ============ ============= ============
</TABLE>
See accompanying notes to financial statements.
110
<PAGE> 113
<TABLE>
<CAPTION>
MANAGED PORTFOLIO INTERNATIONAL GROWTH PORTFOLIO HIGH-YIELD BOND PORTFOLIO
--------------------------------- ------------------------------ ------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996 JUNE 30, 1997 1996
-------------- -------------- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 12,664,355 $ 34,357,948 $ 585,061 $ 469,448 $ 1,779,003 $ 2,054,070
46,325,949 86,738,070 1,631,101 1,830,273 460,749 364,910
-- -- -- -- (40,672) (22,678)
216,061,907 213,973,719 6,011,312 2,175,265 219,417 789,178
-------------- -------------- ------------ ------------ ------------ ------------
275,052,211 335,069,737 8,227,474 4,474,986 2,418,497 3,185,480
-------------- -------------- ------------ ------------ ------------ ------------
-- (3,366,114) -- -- (1,779,003) (2,054,070)
-- (15,402,221) -- (190,139) -- (33,884)
-------------- -------------- ------------ ------------ ------------ ------------
-- (18,768,335) -- (190,139) (1,779,003) (2,087,954)
-------------- -------------- ------------ ------------ ------------ ------------
425,158,493 602,776,605 19,784,686 36,234,262 17,429,666 22,145,776
-- 18,768,335 -- 190,139 1,779,003 2,087,926
(287,736,054) (267,220,838) (4,551,219) (6,539,162) (4,307,691) (6,143,188)
-------------- -------------- ------------ ------------ ------------ ------------
137,422,439 354,324,102 15,233,467 29,885,239 14,900,978 18,090,514
-------------- -------------- ------------ ------------ ------------ ------------
412,474,650 670,625,504 23,460,941 34,170,086 15,540,472 19,188,040
1,935,343,481 1,264,717,977 52,768,301 18,598,215 34,411,109 15,223,069
-------------- -------------- ------------ ------------ ------------ ------------
$2,347,818,131 $1,935,343,481 $ 76,229,242 $ 52,768,301 $ 49,951,581 $ 34,411,109
============== ============== ============ ============ ============ ============
11,889,092 19,459,858 3,161,772 6,375,789 3,169,574 4,149,703
-- 547,022 -- 32,357 322,469 389,665
(8,178,810) (8,684,392) (724,682) (1,143,764) (783,599) (1,154,032)
-------------- -------------- ------------ ------------ ------------ ------------
3,710,282 11,322,488 2,437,090 5,264,382 2,708,444 3,385,336
============== ============== ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
111
<PAGE> 114
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------------------------------------
JUNE 30, 1997 1996 1995 1994
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 28.86 $ 23.35 $ 18.14 $ 17.95
-------- -------- ------- -------
Income from investment operations:
Net investment income................. 0.13 0.37 0.33 0.28
Net realized and unrealized gain
(loss) on investments.............. 4.01 5.52 6.38 0.41
-------- -------- ------- -------
Total from investment
operations.................. 4.14 5.89 6.71 0.69
-------- -------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net
investment income.................. -- (0.09) (0.49) (0.18)
Distribution to shareholders from net
capital gains...................... -- (0.29) (1.01) (0.32)
-------- -------- ------- -------
Total dividends and
distributions............... -- (0.38) (1.50) (0.50)
-------- -------- ------- -------
Net asset value, end of year............ $ 33.00 $ 28.86 $ 23.35 $ 18.14
======== ======== ======= =======
Total return.................. 14.35%(c) 25.22% 38.44% 3.87%
-------- -------- ------- -------
Net assets, end of year (000)........... $421,957 $ 314,907 $ 167,963 $ 88,583
-------- -------- ------- -------
Ratio of net operating expenses to
average net assets.................... 0.84%(b) 0.81% 0.69% 0.67%
-------- -------- ------- -------
Ratio of net operating expenses
(excluding waivers) to average net
assets................................ 0.84%(b) 0.81% 0.72% 0.69%
-------- -------- ------- -------
Ratio of net investment income to
average net assets.................... 1.39%(b) 1.94% 1.94% 1.81%
-------- -------- ------- -------
Ratio of net investment income
(excluding waivers) to average net
assets................................ 1.39%(b) 1.94% 1.91% 1.79%
-------- -------- ------- -------
Portfolio turnover...................... 13%(b) % 30 % 29 % 38
-------- -------- ------- -------
Average commission per share (a)........ $ 0.0576 $ 0.0567
-------- --------
<CAPTION>
1993 1992
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of year...... $ 17.23 $ 15.24
------- ------
Income from investment operations:
Net investment income................. 0.18 0.17
Net realized and unrealized gain
(loss) on investments.............. 1.13 2.49
------- ------
Total from investment
operations.................. 1.31 2.66
------- ------
Less dividends and distributions:
Dividends to shareholders from net
investment income.................. (0.17) (0.24)
Distribution to shareholders from net
capital gains...................... (0.42) (0.43)
------- ------
Total dividends and
distributions............... (0.59) (0.67)
------- ------
Net asset value, end of year............ $ 17.95 $ 17.23
======= ======
Total return.................. 7.85% 17.90%
------- ------
Net assets, end of year (000)........... $ 66,172 $ 33,581
------- ------
Ratio of net operating expenses to
average net assets.................... 0.72% 0.79%
------- ------
Ratio of net operating expenses
(excluding waivers) to average net
assets................................ 0.72% 0.79%
------- ------
Ratio of net investment income to
average net assets.................... 1.47% 1.48%
------- ------
Ratio of net investment income
(excluding waivers) to average net
assets................................ 1.47% 1.48%
------- ------
Portfolio turnover...................... % 15 % 27
------- ------
Average commission per share (a)........
</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.
(b) Annualized.
(c) Not annualized.
112
<PAGE> 115
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------------------------------
JUNE 30, 1997 1996 1995 1994 1993 1992
---------------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 20.22 $ 18.48 $ 17.56 $ 18.62 $ 16.72 $ 15.11
-------- -------- -------- -------- -------- -------
Income from investment operations:
Net investment income................. (0.03) 0.25 0.32 0.19 0.10 0.09
Net realized and unrealized gain
(loss) on investments.............. 4.70 1.82 1.75 (0.16) 2.98 3.05
-------- -------- -------- -------- -------- -------
Total from investment
operations.................. 4.67 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............ $ 24.89 $ 20.22 $ 18.48 $ 17.56 $ 18.62 $ 16.72
======== ======== ======== ======== ======== =======
Total return.................. 23.10%(c) 11.21% 12.28% .02% 19.51% 21.49%
-------- -------- -------- -------- -------- -------
Net assets, end of year (000)........... $258,445 $192,704 $166,061 $144,880 $105,635 $31,211
-------- -------- -------- -------- -------- -------
Ratio of net operating expenses to
average net assets.................... 0.87%(b) 0.84% 0.69% 0.66% 0.74% 0.86%
-------- -------- -------- -------- -------- -------
Ratio of net operating expenses
(excluding waivers) to average net
assets................................ 0.87%(b) 0.84% 0.72% 0.67% 0.74% 0.86%
-------- -------- -------- -------- -------- -------
Ratio of net investment income to
average net assets.................... (0.06)%(b) 1.35% 1.86% 1.30% 1.06% 1.05%
-------- -------- -------- -------- -------- -------
Ratio of net investment income
(excluding waivers) to average net
assets................................ (0.06)%(b) 1.35% 1.83% 1.29% 1.06% 1.05%
-------- -------- -------- -------- -------- -------
Portfolio turnover...................... 62%(b) 137% 70% 58% 70% 105%
-------- -------- -------- -------- -------- -------
Average commission rate per share (a)... $ 0.0480 $ 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.
(b) Annualized.
(c) Not annualized.
113
<PAGE> 116
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------------------------------------------
JUNE 30, 1997 1996 1995 1994 1993 1992
---------------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year.............................. $ 34.31 $ 28.06 $ 20.82 $ 21.35 $ 20.11 $ 17.56
---------- ---------- -------- -------- -------- --------
Income from investment operations:
Net investment income............. 0.17 0.59 0.40 0.40 0.46 0.25
Net realized and unrealized gain
(loss) on investments.......... 4.58 5.99 8.97 0.15 1.55 2.95
---------- ---------- -------- -------- -------- --------
Total from investment
operations.............. 4.75 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........ $ 39.06 $ 34.31 $ 28.06 $ 20.82 $ 21.35 $ 20.11
========== ========== ======== ======== ======== ========
Total return.............. 13.84%(c) 23.47% 46.89% 2.57% 10.39% 18.65%
---------- ---------- -------- -------- -------- --------
Net assets, end of year (000)....... $2,347,818 $1,935,343 $1,264,718 $689,252 $525,163 $236,175
---------- ---------- -------- -------- -------- --------
Ratio of net operating expenses to
average net assets................ 0.76%(b) 0.74% 0.67% 0.64% 0.66% 0.69%
---------- ---------- -------- -------- -------- --------
Ratio of net operating expenses
(excluding waivers) to average net
assets............................ 0.76%(b) 0.74% 0.67% 0.64% 0.66% 0.69%
---------- ---------- -------- -------- -------- --------
Ratio of net investment income to
average net assets................ 1.20%(b) 2.16% 1.80% 2.23% 3.21% 2.06%
---------- ---------- -------- -------- -------- --------
Ratio of net investment income
(excluding waivers) to average net
assets............................ 1.20%(b) 2.16% 1.80% 2.23% 3.21% 2.06%
---------- ---------- -------- -------- -------- --------
Portfolio turnover.................. 26%(b) 29% 31% 33% 21% 23%
---------- ---------- -------- -------- -------- --------
Average commission per share (a).... $ 0.0576 $ 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.
(b) Annualized.
(c) Not annualized.
114
<PAGE> 117
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED
(UNAUDITED) DECEMBER 31, PERIOD OF
SIX MONTHS ENDED ------------------- NOVEMBER 18, 1994-
JUNE 30, 1997 1996 1995 DECEMBER 31, 1994
---------------- ------- ------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.................... $ 6.05 $ 5.39 $ 4.96 $ 5.00
-------- ------- ------- --------
Income from investment operations:
Net investment income............................ 0.04 0.05 0.04 --
Net realized and unrealized gain (loss) on
investments.................................... 0.75 0.63 0.67 (0.04)
-------- ------- ------- --------
Total from investment operations............ 0.79 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.......................... $ 6.84 $ 6.05 $ 5.39 $ 4.96
======== ======= ======= ========
Total return................................ 12.89%(c) 12.65% 14.64% (1.00)%(c)
-------- ------- ------- --------
Net assets, end of year (000)......................... $ 76,229 $52,768 $18,598 $ 3,247
-------- ------- ------- --------
Ratio of net operating expenses to average net
assets.............................................. 1.19%(b) 1.38% 1.55% 1.55% (b)
-------- ------- ------- --------
Ratio of net operating expenses (excluding waivers) to
average net assets.................................. 1.19%(b) 1.38% 2.21% 8.85% (b)
-------- ------- ------- --------
Ratio of net investment income to average net
assets.............................................. 1.89%(b) 1.32% 1.17% 0.80% (b)
-------- ------- ------- --------
Ratio of net investment income (excluding waivers) to
average net assets.................................. 1.89%(b) 1.32% 0.51% (6.34)%(b)
-------- ------- ------- --------
Portfolio turnover.................................... 24%(b) 21% 27% 0%
-------- ------- ------- --------
Average commission per share (a)...................... $ 0.0273 $0.0224
-------- -------
</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.
(b) Annualized.
(c) Not annualized.
115
<PAGE> 118
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED
(UNAUDITED) DECEMBER 31, PERIOD OF
SIX MONTHS ENDED ------------------- NOVEMBER 18, 1994-
JUNE 30, 1997 1996 1995 DECEMBER 31, 1994
---------------- ------- ------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.................. $ 5.51 $ 5.31 $ 4.98 $ 5.00
------ ------- ------- ------
Income from investment operations:
Net investment income.......................... 0.24 0.45 0.45 0.04
Net realized and unrealized gain (loss) on
investments.................................. 0.07 0.21 0.35 (0.01)
------ ------- ------- ------
Total from investment operations.......... 0.31 0.66 0.80 0.03
------ ------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net investment
income....................................... (0.24) (0.45) (0.45) (0.05)
Distribution to shareholders from net capital
gains........................................ -- (0.01) (0.02) --
------ ------- ------- ------
Total dividends and distributions......... (0.24) (0.46) (0.47) (0.05)
------ ------- ------- ------
Net asset value, end of year........................ $ 5.58 $ 5.51 $ 5.31 $ 4.98
------ ------- ------- ------
Total return.............................. 5.70%(c) 12.93% 16.59% 0.50%(c)
------ ------- ------- ------
Net assets, end of year (000)....................... $ 49,952 $34,411 $15,223 $1,421
------ ------- ------- ------
Ratio of net operating expenses to average net
assets............................................ 0.79%(b) 0.85% 0.85% 0.85%(b)
------ ------- ------- ------
Ratio of net operating expenses (excluding waivers)
to average net assets............................. 0.79%(b) 0.94% 1.59% 7.80%(b)
------ ------- ------- ------
Ratio of net investment income to average net
assets............................................ 8.64%(b) 8.57% 8.51% 7.84%(b)
------ ------- ------- ------
Ratio of net investment income (excluding waivers)
to average net assets............................. 8.64%(b) 8.48% 7.77% 0.80%(b)
------ ------- ------- ------
Portfolio turnover.................................. 183%(b) 175% 115% 0%
------ ------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(b) Annualized.
(c) Not annualized.
116
<PAGE> 119
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
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 -- 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 the 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
June 30, 1997.
Foreign Currency Translation -- Securities and 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.
117
<PAGE> 120
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
Security Transactions and Income Recognition -- Security transactions are
recorded 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 accredited or amortized to interest income over the 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 Statements -- 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.
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 June 30, 1997, 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 June 30, 1997 are as
follows:
<TABLE>
<CAPTION>
CONTRACT TO NET UNREALIZED
SETTLEMENT ----------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
- ---------- --------------- --------------- --------------
<S> <C> <C> <C>
7/18/97 USD 2,638,385 AUD 3,400,000 $ 68,439
7/18/97 USD 1,459,929 BEL 48,000,000 124,184
7/18/97 CAD 1,150,000 USD 859,480 (25,680)
7/18/97 CHF 4,950,000 USD 3,493,393 (95,352)
7/18/97 USD 782,706 CHF 1,050,000 61,910
7/18/97 DEM 3,250,000 USD 1,950,589 (84,629)
7/18/97 USD 2,408,787 DEM 3,750,000 255,756
7/18/97 ESP 105,000,000 USD 736,863 (24,175)
7/18/97 USD 791,348 ESP 105,000,000 78,660
7/18/97 FRF 25,400,000 USD 4,478,578 (151,057)
7/18/97 USD 4,819,007 FRF 25,400,000 491,487
7/18/97 JPY 310,579,920 GBP 1,640,000 (12,574)
7/18/97 GBP 750,000 USD 1,221,953 26,368
7/18/97 USD 1,179,422 GBP 710,000 (2,322)
7/18/97 USD 529,762 HKD 4,100,000 664
7/18/97 USD 3,630,598 JPY 424,000,000 (78,738)
7/18/97 JPY 332,000,000 USD 2,737,395 167,085
7/18/97 NLG 4,000,000 USD 2,124,680 (84,192)
7/18/97 USD 2,946,393 NLG 5,150,000 319,265
7/18/97 SEK 13,100,000 USD 1,761,346 (66,640)
----------
$ 968,459
==========
</TABLE>
Net unrealized appreciation on these contracts at June 30, 1997 is included
in receivable for foreign currency sold (net) in the accompanying financial
statements.
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ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
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.
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%, Small Cap -- .95%, Managed -- .95%, 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 six months ended June 30, 1997, purchases and sales proceeds of
investment securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
STOCKS AND BONDS
----------------------------
PORTFOLIO PURCHASES SALES
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Equity......................................................................... $ 39,669,768 $ 19,885,973
Small Cap...................................................................... 67,930,288 61,620,362
Managed........................................................................ 332,232,111 245,707,785
International Growth........................................................... 22,119,577 6,845,529
High-Yield Bond................................................................ 48,034,481 34,610,289
</TABLE>
6. TAX MATTERS AND DISTRIBUTIONS
At June 30, 1997, 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................................................ $ 305,831,217 $114,210,757 $ (193,567) $114,017,190
Small Cap............................................. 228,054,661 42,987,395 (8,638,423) 34,348,972
Managed............................................... 1,607,574,902 739,895,025 (2,132,846) 737,762,179
International Growth.................................. 67,611,732 9,930,293 (1,635,220) 8,295,073
High-Yield Bond....................................... 48,523,649 1,452,195 (156,258) 1,295,937
</TABLE>
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.
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.
119
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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
DISTRIBUTING BROKER/DEALER
Enterprise Fund Distributors, Inc.
Atlanta Financial Center
3343 Peachtree Road, Suite 450
Atlanta, Georgia 30326
(800) 432-4320
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.
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OCC ACCUMULATION TRUST
MANAGED BY
[OPCAP ADVISERS LOGO]
We are pleased to report on the investment activities and results of the
portfolios in the OCC Accumulation Trust for the first half of 1997, a favorable
period for investors. Stock prices rose sharply during the half while bonds
delivered moderate returns.
With its continued sharp advance in the 1997 first half, the stock market
has been exceptionally strong for the past two-and-a-half years. As measured by
the total return of the Standard & Poor's 500 Index, the U.S. stock market has
risen 104% in the 30 months from year end 1994 through the end of June 1997,
matching its steepest ascent in history -- a 104% gain achieved in a 30-month
span of 1954-56. This recent performance has been driven by a sustained economic
environment of moderate growth, low inflation and low interest rates.
Throughout this period, we have remained disciplined in our investment
approach, and have delivered favorable returns with what we believe to be
below-market risk. All the equity portfolios in the OCC Accumulation Trust
ranked in the top half of their respective mutual fund categories for the 1997
first half, despite the inherently conservative nature of our investment
philosophy, and each has a very strong performance record over longer periods.
Simply stated, our investment philosophy is to buy good companies at
reasonable price. By doing so, we seek to preserve capital, manage risk and
generate excellent returns. Although our philosophy is relatively simple,
implementing that philosophy is complex and requires hard work and intensive
in-depth research to find companies which meet our criteria.
In today's world, when so many investors are seeking instant gratification,
we are sometimes able to acquire quality companies inexpensively when they have
a temporary misstep such as a quarterly earnings disappointment. We also try to
capitalize on changes in corporate direction and strategy which increase a
company's intrinsic value. Often, the market is slow to respond to positive
changes, creating opportunity for the astute value investor. We believe our
focus on value and our long-term perspective are a tremendous advantage in a
stock market which is often driven by transitory considerations.
The portfolios in the OCC Accumulation Trust are intended for the long-term
investor seeking to preserve capital and make it grow. Looking ahead, we remain
dedicated to preserving capital in all market conditions by being disciplined in
our value philosophy and not overpaying for securities, whether stocks or bonds.
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<PAGE> 124
EQUITY PORTFOLIO
The Equity Portfolio owns a diverse group of large-capitalization and
mid-capitalization stocks. The Portfolio continued its excellent long-term
record of providing consistent returns through a variety of market conditions.
The Portfolio's total return in the first half was 13.7%, compared with a total
return of 20.6% with dividends included for the Standard & Poor's 500 Index (S&P
500), an unmanaged index of 500 of the largest corporations weighted by market
capitalization. The Portfolio's performance exceeded the 9.7% average total
return for the funds in Lipper's Variable Insurance Products Performance Service
Report capital appreciation category. The Portfolio ranked 14th among the 42
funds in this Lipper universe for the half.
One of the extraordinary aspects of the six-month period was that every
fund in the Lipper capital appreciation universe trailed the return of the S&P
500. This reflects the fact that the strong gains of the S&P 500 were driven
primarily by a limited number of very large-capitalization stocks. Broader
market indexes, which give less weight to the largest companies, generally
showed much smaller gains than the S&P 500 in the period. We believe our
first-half performance was reasonable both in terms of comparable funds and
given the risk-averse nature of our investment philosophy. We do not necessarily
expect to beat the S&P 500 when the market rises sharply over relatively short
periods. We are more concerned about delivering strong long-term results and
avoiding large losses when the market declines.
For the 12 months ended June 30, 1997, the Portfolio provided a total
return of 26.6%, surpassing the 15.1% average return for the funds in the Lipper
capital appreciation category. The Portfolio's 12-month performance was eighth
among the 42 funds in this Lipper universe. The return on the S&P 500 was 34.7%
in the 12 months.
The Portfolio has generated favorable returns over time, with what we
believe to be below-market risk. For the five years ended June 30, 1997, the
Portfolio provided an average annual total return of 19.9%*, compared with the
19.8% average annual return of the S&P 500. This performance was eighth among
the 19 funds in the Lipper capital appreciation category. Since its inception on
August 1, 1988, the Portfolio has generated an average annual total return of
17.2%*, compared with 17.6% 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 Fund invests in companies with what we consider to have superior
business characteristics, and which are trading in the market at prices well
below what we consider to be their inherent worth. Many of the companies owned
by the Portfolio are in seemingly mundane businesses, yet their leadership
positions permit them to earn high and improving returns on capital.
Caterpillar, Inc. (earth-moving equipment and diesel engines) is a low-cost,
highest-quality producer worldwide, and its service network represents a
formidable barrier to entry by competitors. LucasVarity PLC (auto components and
small diesel engines) has strong worldwide market positions and significant
cost-cutting and marketing opportunities as a result of the recent combination
of two predecessor companies. In both of these companies, as well as in other
companies owned by the Portfolio, management has focused on maximizing cash flow
returns on capital and using that cash flow to create wealth for shareholders,
such as by investing in high-return business opportunities or repurchasing
shares.
Even when we identify a business that meets our criteria, including high,
sustainable returns on capital, we are very conscious about not paying too much
for the company's stock. Buying stocks at reasonable valuations is very
important to us, since the price we pay should be low enough to offer both
significant opportunity for investment profit and meaningful protection against
a severe price decline. We believe our focus on value and our long-term
perspective are a tremendous advantage in a stock market which is often driven
by transitory considerations.
- ---------------
* 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.
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<PAGE> 125
In the 1997 first half, we established a new position in EG&G, Inc. and
increased the Portfolio's holdings of ACE, Ltd., Armstrong World Industries,
Inc., Canadian Pacific Ltd., General Re Corp. and Lockheed Martin Corp. We
eliminated the Portfolio's investments in Columbia/HCA Healthcare Corp., CSX
Corp., Electronic Arts, Inc., Shaw Industries and TCI Satellite Entertainment,
Inc. and reduced its positions in American International Group, Inc. and Everest
Reinsurance Holdings, Inc.
Net assets were allocated 80% to common stocks and 20% to cash and cash
equivalents at June 30, 1997. The Portfolio's above-average cash position is a
buffer against market volatility and, more importantly, provides a resource to
purchase quality stocks opportunistically as they become available at attractive
prices.
The Portfolio's five largest equity positions at June 30, 1997 were EXEL
Ltd., a strongly capitalized specialty insurance company based in Bermuda,
representing 5.1% of the Portfolio's net assets; ACE, Ltd., a Bermuda-based
provider of excess liability insurance, 4.9% of net assets; Caterpillar, Inc.,
which manufactures earth-moving equipment and diesel engines, 3.8% of net
assets; General Re Corp., a leading insurance company, 3.6% of net assets; and
Lockheed Martin Corp., a major aerospace and defense contractor, 3.3% of net
assets.
Major industry positions were in the insurance sector, 23.2% of the
Portfolio's net assets; banking, 6.4% of net assets; aerospace/defense, 5.3% of
net assets; miscellaneous financial services, 5.3% of net assets; and
manufacturing, 4.1% of net assets.
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SMALL CAP PORTFOLIO
The Small Cap Portfolio delivered excellent returns in both the six and 12
months ended June 30, 1997, significantly exceeding the Russell 2000 Index with
dividends included (Russell 2000), a widely followed benchmark which includes
smaller capitalization stocks. We achieved these results by being disciplined in
our approach of buying reasonably valued companies based on their business
fundamentals.
The Portfolio's total return in the first half of 1997 was 14.6%, outpacing
both the 10.2% return of the Russell 2000 and the 8.1% average total return for
the small company growth funds in Lipper's Variable Insurance Products
Performance Analysis Service Report. The Portfolio ranked sixth among the 53
funds in this Lipper universe.
For the 12 months ended June 30, 1997, the Portfolio's total return of
25.5% surpassed the 16.3% return of the Russell 2000 and the 14.2% average
return for the funds in the Lipper small company growth funds category. The
Portfolio's 12-month results ranked sixth among the 48 funds in this Lipper
universe.
For the five years ended June 30, 1997, the Portfolio provided an average
annual total return of 16.0%*, compared with 17.9% for the Russell 2000. The
Portfolio's five-year performance was sixth among the seven funds in the Lipper
small company growth funds category. From its inception on August 1, 1988
through June 30, 1997, the Portfolio generated an average annual total return of
15.6%*, exceeding the 13.5% average annual total return of 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.
The Portfolio invests in undervalued smaller companies with strong
competitive positions, high returns on capital and shareholder-oriented
managements. Although small-cap stocks as a class have underperformed large-cap
stocks for the past three years, we have achieved favorable returns, with what
we believe to be below-market risk, by being highly selective in our
investments.
Rather than purchasing start-up companies or highly volatile speculative
issues, we concentrate on companies with proven business records, solid
financials and good growth prospects. Magellan Health Services, Inc., the
Portfolio's largest holding, exemplifies the qualities we look for in an
investment, including high returns on invested capital, a leading competitive
position to help protect those returns, significant free cash flow which is
being used to create shareholder value and a management team oriented toward
shareholder interests. Magellan is the largest behavioral health care company in
the U.S. The company recently sold its brick-and-mortar hospital business,
realizing about $400 million of cash, which it is using to make acquisitions
that complement its managed-care business. Magellan is now focused solely on
providing managed-care mental health programs for corporations and government
agencies. It is the leader in this field, which offers excellent prospects for
revenue and earnings growth. At a recent price of about $30 a share, or about 15
times anticipated fiscal 1998 earnings, and with its strong cash flow and
favorable growth characteristics, we consider the stock to be an attractive
value.
During the 1997 first half, we established new positions in the common
stocks of Ametek, Inc., Durco International, Inc., JLG Industries, Inc.,
Jostens, Inc., KCS Energy, Inc. and A. Schulman, Inc. Increased positions
included E.W. Blanch Holdings, Inc., Magellan Health Services, Inc., St. Mary
Land & Exploration Co., Wang Laboratories, Inc. and Westpoint Stevens, Inc.
(Class A).
We eliminated the Portfolio's holdings of ACE, Ltd., Alltrista Corp., Arrow
Electronics, Inc., Exabyte Corp. and Jason, Inc. Reductions included Horace Mann
Educators Corp., Katz Media Group, Inc., SpaceLabs Medical, Inc. and United
Dominion Industries, Ltd.
At June 30, 1997, the Portfolio's net assets were allocated 85% to common
stocks and securities convertible into common stocks and 15% to cash and cash
equivalents. The five largest equity positions at the
- ---------------
* 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.
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<PAGE> 127
end of June were Magellan Health Services, Inc., the largest provider of
managed-care behavioral health services in the U.S., representing 3.4% of the
Portfolio's net assets; Wang Laboratories, Inc., a systems integration and
computer maintenance firm, 2.8% of net assets; St. Mary Land & Exploration Co.,
an oil and gas exploration and production company, 2.7% of net assets; E.W.
Blanch Holdings, Inc., an insurance broker, 2.6% of net assets; and A. Schulman,
Inc., which produces plastics and resins, 2.4% of net assets.
Major industry positions were in the insurance sector, representing 12.8%
of the Portfolio's net assets; manufacturing, 9.0% of net assets; printing and
publishing, 6.8% of net assets; electronics, 5.8% of net assets; and energy,
5.5% of net assets.
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<PAGE> 128
MANAGED PORTFOLIO
The Managed 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
consistently ranked as one of the top-performing funds in Lipper's Variable
Insurance Products Performance Analysis Service Report flexible portfolio funds
category.
In the 1997 first half, the Portfolio delivered a total return of 14.0%,
exceeding the average total return of 10.4% for the funds in the Lipper flexible
portfolio universe, although below the total return of 20.6% with dividends
included for the Standard & Poor's 500 Index (S&P 500), an unmanaged index of
500 of the largest corporations weighted by market capitalization. As these
performance numbers indicate, most fund managers have trailed the S&P 500 in
recent months. During this period, the strong gains of the S&P 500 have been
driven primarily by a limited number of very large-capitalization stocks.
Broader market indexes, which give less weight to the largest companies, have
generally shown much smaller gains than the S&P 500.
We believe our performance in the 1997 first half continued to be favorable
given the nature of the fund and the risk-averse character of our investment
philosophy. The Portfolio's first-half performance ranked seventh among the 84
funds in the Lipper flexible portfolio category.
With a total return of 28.5% for the 12 months ended June 30, 1997, the
Portfolio exceeded the 19.4% average return of the funds in the Lipper flexible
portfolio category and ranked second among the 78 funds for the period. The
return on the S&P 500 was 34.7% in the 12 months.
For the five years ended June 30, 1997, the Portfolio delivered an average
annual return of 21.0%*, compared with 19.8% for the S&P 500. The Portfolio's
five-year performance was second among the 50 funds in the Lipper flexible
portfolio category. Since its inception on August 1, 1988, the Portfolio has
provided an average annual total return of 20.6%*, exceeding the 17.6% 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.
The Portfolio invests in businesses that are worth inherently more, in our
judgment, than their asking prices. Looked at another way, we hope to preserve
our shareholders' capital in all market conditions, including market
corrections, because we remain disciplined about not overpaying for stocks and
because the businesses in which we invest tend to generate excess cash which
they use to create long-term value for shareholders. We focus on individual
companies and try to understand where their businesses are going over the next
several years, and are less concerned about attempting to predict where the
stock market is heading in the next month.
We expect the companies owned by the Portfolio to continue to improve their
results. The pending merger of McDonnell Douglas Corp. with Boeing Co. should
enable our McDonnell Douglas holding to perform well. In the coming months, we
expect E.I. du Pont de Nemours & Co. to announce a restructuring which will spur
its business performance. While the market has mistakenly, in our view,
neglected Citicorp stock much of this year, its business, particularly the
two-thirds generated by international operations, continues to surge. Moreover,
Citicorp continues to repurchase its shares at a very aggressive pace. Share
repurchases add value by reducing the number outstanding, making the remaining
shares worth more.
Our major disappointment this year is Wells Fargo & Co., which has
encountered severe difficulties in its merger with First Interstate Bancorp,
completed in April 1996. We do not foresee a resolution of these issues before
year end. Fortunately, the company continues to repurchase its stock at a high
rate of approximately 7% to 8% per year. For many years, Wells Fargo was the
most profitable large bank in the world, a position we expect it to regain in
the next 12 to 18 months. We continue to own the stock in anticipation it will
provide superior returns over time.
- ---------------
* 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.
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<PAGE> 129
During the first half, we established new positions in BankBoston Corp. and
Computer Associates International Inc. and increased our holdings of nine
stocks, including Caterpillar, Inc., Federal Home Loan Mortgage Corp. and
McDonnell Douglas Corp. Eliminations were Newport News Shipbuilding, Inc. and
Sprint Corp. We reduced the Portfolio's investments in Countrywide Credit
Industries, Inc., R.R. Donnelly & Sons Co., Freeport McMoRan Copper & Gold
(Class B), Union Pacific Corp. and Unitrode Corp.
At June 30, 1997, the Portfolio's net assets were allocated 78% to common
stocks and securities convertible into common stocks, 1% to Treasury notes and
bonds, and 21% to cash and equivalents. The five largest equity positions were
E.I. du Pont de Nemours & Company, a major industrial company operating in
chemicals, fibers, polymers, petroleum and diversified businesses, representing
4.7% of the Portfolio's net assets; McDonnell Douglas Corp., the nation's
largest manufacturer of military aircraft and an important competitor in
commercial aircraft, being acquired by Boeing Co., 4.6% of net assets; Federal
Home Loan Mortgage Corp. (Freddie Mac), the second largest insurer of home
mortgages in the United States, 4.3% of net assets; Tele-Communications, Inc.
(Class A), a leading operator of cable television systems, 4.2% of net assets;
and Wells Fargo & Co., a leading bank in the Western United States, 4.2% of net
assets.
Major industry positions were in the banking sector, representing 11.8% of
the Portfolio's net assets; miscellaneous financial services, 10.1% of net
assets; chemicals, 7.6% of net assets; aerospace and defense, 6.8% of net
assets; and insurance, 5.0% of net assets.
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<PAGE> 130
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 4.80% as of June 30, 1997. The average dollar-weighted portfolio
maturity was 30 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. At June 30, 1997, 81% of the Portfolio's assets were
allocated to short-term corporate notes, with the remaining assets invested in
U.S. Government agency securities.
Although the Money Market Portfolio seeks to maintain its share price at
$1.00, an investment in the Portfolio is not guaranteed or insured by the U.S.
Government, and there is no assurance that the Portfolio will maintain a
constant price of $1.00 per share.
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<PAGE> 131
U.S. GOVERNMENT INCOME PORTFOLIO
The 1997 first half was a period of modestly positive returns for investors
in fixed income securities. The bond market started out the year on a cautious
note, with intermediate and long-term securities experiencing negative returns
in the first quarter, reflecting investor concerns about the inflation outlook
and the prospect that interest rates might be raised by the Federal Reserve.
Rates were increased on March 25, but investors took the Fed's action in stride,
with the result that the bond market rallied in the second quarter, delivering
solid returns across all maturities.
For the half, the market provided a total return of 2.8%, as measured by
the Lehman Brothers Intermediate Government Bond Index (Lehman Index). The total
return (dividends paid and change in net asset value assuming the reinvestment
of dividends) of the U.S. Government Income Portfolio was 2.2%. This compared
with an average total return of 2.7% for the U.S. Government funds in Lipper's
Variable Insurance Products Performance Analysis Service Report. The Portfolio's
performance was 30th among the 34 funds in this Lipper universe.
The Portfolio is intended for investors seeking high current income from
investments in Government securities. The Portfolio primarily invests in debt
obligations issued or guaranteed by the U.S. Government and its agencies or
intermediaries. These issues are considered to carry the least credit risk. The
Portfolio generally invests in intermediate-term securities and places a
priority on maintaining a relatively stable net asset value (NAV) per share.
For the 12 months ended June 30, 1997, the total return of the Portfolio
was 5.5%, compared with 7.0% for the Lehman Index and an average of 7.2% for the
funds in the Lipper U.S. Government fund category. The Portfolio provided an
average annual total return of 7.3% from its inception on January 3, 1995
through June 30, 1997, versus 8.4% for the Lehman Index. Returns take into
account expenses incurred by the Portfolio, but not separate account charges
imposed by the insurance company.
During the first half, we added to the Portfolio's holdings of
mortgage-backed securities to capture additional yield. In addition, we
lengthened the average maturity of the Portfolio's investments to approximately
6.7 years at June 30, 1997 from approximately 3.8 years at December 31, 1996.
At the end of June 1997, the Portfolio's assets were allocated 49% to U.S.
Treasury securities, 29% to U.S. Government agency securities, 13% to
mortgage-related securities, 7% to corporate notes and bonds, and 2% to cash and
cash equivalents.
129
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- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited)
- -----------------------------------------------------
EQUITY PORTFOLIO
- -----------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE -- .9%
$ 240,000 Federal Home Loan Bank,
5.41%, 7/30/97
(cost -- $238,954) $ 238,954
-----------
SHORT-TERM CORPORATE NOTES -- 18.5%
AUTOMOTIVE -- 3.3%
Ford Motor Credit Co.,
$ 150,000 5.51%, 7/15/97 $ 149,679
125,000 5.53%, 7/22/97 124,597
555,000 5.54%, 7/22/97 553,206
-----------
827,482
-----------
BANKING -- 2.9%
745,000 Norwest Financial Inc.,
5.53%, 7/14/97 743,512
-----------
MACHINERY/ENGINEERING -- 3.4%
Deere (John) Capital Corp.,
180,000 5.51%, 7/17/97 179,559
685,000 5.53%, 7/28/97 682,159
-----------
861,718
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 4.5%
1,150,000 American Express Credit Corp.,
5.51%, 7/17/97 1,147,184
-----------
TECHNOLOGY -- 4.4%
1,100,000 IBM Credit Corp.,
5.51%, 7/15/97 1,097,643
-----------
Total Short-Term Corporate Notes
(cost -- $4,677,539) $ 4,677,539
-----------
<CAPTION>
------------------------------------------------------
SHARES VALUE
------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 80.3%
AEROSPACE/DEFENSE -- 5.3%
8,000 Lockheed Martin Corp. $ 828,500
7,494 McDonnell Douglas Corp. 513,339
-----------
1,341,839
-----------
BANKING -- 6.4%
6,556 Citicorp 790,408
3,033 Wells Fargo & Co. 817,393
-----------
1,607,801
-----------
CHEMICALS -- 3.3%
4,000 du Pont (E.I.) de Nemours &
Co. 251,500
7,698 Hercules, Inc. 368,542
4,910 Monsanto Co. 211,437
-----------
831,479
-----------
CONGLOMERATES -- 2.6%
4,312 General Electric Co. 281,897
8,500 Tenneco, Inc. 384,094
-----------
665,991
-----------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
CONSUMER PRODUCTS -- 2.0%
3,844 Avon Products, Inc. $ 271,242
6,843 Mattel, Inc. 231,807
-----------
503,049
-----------
DRUGS & MEDICAL PRODUCTS -- 2.8%
14,042 Becton, Dickinson & Co. 710,876
-----------
ELECTRONICS -- 3.0%
4,038 Arrow Electronics, Inc.* 214,519
24,000 EG & G, Inc. 540,000
-----------
754,519
-----------
ENERGY -- 1.1%
697 El Paso Natural Gas Co. 38,335
4,996 Triton Energy Ltd.* 228,879
-----------
267,214
-----------
FOOD SERVICES -- 2.0%
10,500 McDonald's Corp. 507,281
-----------
HEALTH & HOSPITALS -- 3.2%
27,750 Tenet Healthcare Corp.* 820,359
-----------
INSURANCE -- 23.2%
16,700 ACE Ltd. 1,233,713
7,372 AFLAC, Inc. 348,327
1,262 American International Group,
Inc. 188,511
12,000 Everest Reinsurance Holdings,
Inc. 475,500
24,452 EXEL Ltd. 1,289,843
5,000 General Re Corp. 910,000
10,000 Mid Ocean Ltd. 524,375
4,579 Progressive Corp. (Ohio) 398,373
13,000 RenaissanceRe Holdings Ltd. 495,625
-----------
5,864,267
-----------
LEISURE -- 2.3%
14,000 Carnival Corp. 577,500
-----------
MACHINERY/ENGINEERING -- 3.8%
9,000 Caterpillar, Inc. 966,375
-----------
MANUFACTURING -- 4.1%
6,000 Armstrong World Industries,
Inc. 440,250
17,560 LucasVarity Corp. PLC ADR 608,015
-----------
1,048,265
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 5.3%
19,912 Countrywide Credit Industries,
Inc. 621,006
20,620 Federal Home Loan Mortgage
Corp. 708,812
-----------
1,329,818
-----------
PRINTING/PUBLISHING -- 1.6%
11,000 Donnelley (R.R.) & Sons Co. 402,875
-----------
RETAIL -- 2.2%
11,888 May Department Stores Co. 561,708
-----------
TELECOMMUNICATIONS -- 2.7%
6,000 Sprint Corp. 315,750
25,000 Tele-Communications, Inc.
(Class A)* 371,875
-----------
687,625
-----------
</TABLE>
* Non-income producing security.
130
<PAGE> 133
OCC ACCUMULATION TRUST JUNE 30, 1997
- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION -- 3.4%
4,300 AMR Corp.* $ 397,750
16,000 Canadian Pacific Ltd. 455,000
-----------
852,750
-----------
Total Common Stocks
(cost -- $14,087,737) $20,301,591
-----------
Total Investments
(cost -- $19,004,230) 99.7% $25,218,084
Other Assets in Excess of
Liabilities 0.3 74,626
----- -----------
Total Net Assets 100.0% $25,292,710
===== ==========
</TABLE>
- -----------------------------------------------------
SMALL CAP PORTFOLIO
- -----------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTE -- 1.1%
$ 675,000 Federal Home Loan Mortgage
Corp.,
5.40%, 8/7/97
(cost -- $671,254) $ 671,254
-----------
SHORT-TERM CORPORATE NOTES -- 14.3%
AUTOMOTIVE -- 2.8%
$1,630,000 Ford Motor Credit Co.,
5.53%, 7/15/97 $ 1,626,495
-----------
INSURANCE -- 3.1%
1,840,000 Prudential Funding Corp.,
5.54%, 7/31/97 1,831,505
-----------
MACHINERY/ENGINEERING -- 2.9%
Deere (John) Capital Corp.,
240,000 5.40%, 7/3/97 239,928
1,500,000 5.49%, 7/3/97 1,499,542
-----------
1,739,470
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 1.3%
740,000 Beneficial Corp.,
5.50%, 7/16/97 738,304
-----------
TECHNOLOGY -- 4.2%
2,500,000 IBM Credit Corp.,
5.51%, 7/15/97 2,494,643
-----------
Total Short-Term Corporate Notes
(cost -- $8,430,417) $ 8,430,417
-----------
CONVERTIBLE CORPORATE BOND -- .1%
REAL ESTATE -- .1%
$ 49,995 Security Capital Group, Inc.,
12.00%, 6/30/14(A)
(cost -- $45,368) $ 60,161
-----------
<CAPTION>
------------------------------------------------------
SHARES VALUE
------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 84.7%
ADVERTISING -- .2%
18,000 Katz Media Group, Inc.* $ 118,125
-----------
AEROSPACE/DEFENSE -- 1.2%
28,800 Tracor, Inc.* 723,600
-----------
AUTOMOTIVE -- 1.9%
20,700 Borg-Warner Automotive, Inc. 1,119,094
-----------
BUILDING & CONSTRUCTION -- 2.6%
29,200 Chicago Bridge & Iron Co.* 646,050
17,800 Dal-Tile International, Inc.* 330,413
42,900 JLG Industries, Inc. 584,512
-----------
1,560,975
-----------
CHEMICALS -- 4.3%
47,100 McWhorter Technologies, Inc.* 1,124,513
57,200 Schulman (A.), Inc. 1,408,550
-----------
2,533,063
-----------
COMPUTER SERVICES -- 4.1%
22,100 BA Merchants Services, Inc.* 421,281
46,367 BancTec, Inc.* 1,202,644
17,500 BDM International, Inc.* 402,500
25,800 Reynolds & Reynolds Co. 406,350
-----------
2,432,775
-----------
DRUGS & MEDICAL PRODUCTS -- 4.4%
21,100 Dentsply International, Inc. 1,033,900
44,700 SpaceLabs Medical, Inc.* 1,139,850
23,200 Vital Signs, Inc. 407,450
-----------
2,581,200
-----------
ELECTRONICS -- 5.8%
30,300 EG & G, Inc. 681,750
54,700 Exar Corp.* 1,176,050
33,620 Oak Industries, Inc.* 966,575
24,400 Watts Industries, Inc.* 585,600
-----------
3,409,975
-----------
ENERGY -- 5.5%
35,400 KCS Energy, Inc. 721,275
22,100 Nuevo Energy Co.* 906,100
45,100 St. Mary Land & Exploration
Co. 1,584,138
-----------
3,211,513
-----------
HEALTH & HOSPITALS -- 3.4%
68,500 Magellan Health Services,
Inc.* 2,020,750
-----------
INSURANCE -- 12.8%
66,600 Capsure Holdings Corp.* 861,637
38,000 Corvel Corp.* 1,092,500
22,422 Delphi Financial Group, Inc.* 863,247
57,000 E.W. Blanch Holdings, Inc. 1,521,188
46,500 Gryphon Holdings, Inc. 709,125
14,000 Horace Mann Educators Corp. 686,000
23,300 RenaissanceRe Holdings Ltd. 888,313
26,700 United Wisconsin Services,
Inc. 899,456
-----------
7,521,466
-----------
</TABLE>
* Non-income producing security.
131
<PAGE> 134
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- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MACHINERY/ENGINEERING -- 4.8%
28,100 Ametek, Inc. $ 660,350
29,400 Durco International, Inc. 859,950
16,900 Kaydon Corp. 838,663
19,200 United Dominion Industries,
Ltd. 471,600
-----------
2,830,563
-----------
MANUFACTURING -- 9.0%
183,900 Baldwin Technology Co. (Class
A)* 551,700
53,000 Easco, Inc. 516,750
18,800 Jostens, Inc. 502,900
32,700 Keystone International, Inc. 1,134,281
44,400 Lydall, Inc.* 937,950
55,600 Omniquip International, Inc.* 1,285,750
7,300 Roper Industries, Inc. 378,687
-----------
5,308,018
-----------
MEDIA/BROADCASTING -- 1.7%
24,500 American Radio Systems Corp.* 976,938
-----------
MISCELLANEOUS FINANCIAL SERVICES -- 3.6%
32,500 BISYS Group, Inc.* 1,356,875
17,100 Enhance Financial Services
Group, Inc. 750,262
-----------
2,107,137
-----------
PAPER PRODUCTS -- .7%
22,500 Rock-Tenn Co. 395,156
-----------
PRINTING/PUBLISHING -- 6.8%
24,900 Bowne & Co., Inc. 868,387
15,800 Harland (John H.) Co. 360,437
88,100 Hollinger International, Inc. 985,619
82,400 International Imaging
Materials, Inc.* 1,339,000
5,700 Merrill Corp. 207,338
92,500 Nu-Kote Holdings, Inc. (Class
A)* 231,250
-----------
3,992,031
-----------
REAL ESTATE -- .1%
66 Security Capital Group, Inc.
(A) 83,073
-----------
RETAIL -- .8%
24,400 Ann Taylor Stores Corp.* 475,800
-----------
TECHNOLOGY -- 5.4%
132,000 Auspex Systems, Inc.* 1,270,500
7,100 Cable Design Technologies* 209,006
78,800 Wang Laboratories, Inc.* 1,679,425
-----------
3,158,931
-----------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS -- 2.4%
18,300 ACC Corp.* $ 565,013
800 Plantronics, Inc.* 40,100
22,300 TCA Cable TV, Inc. 839,037
-----------
1,444,150
-----------
TEXTILES/APPAREL -- 2.2%
20,200 Burlington Industries, Inc.* 242,400
5,000 Guilford Mills, Inc. 104,062
23,500 Westpoint Stevens, Inc. (Class
A)* 919,438
-----------
1,265,900
-----------
TRANSPORTATION -- 1.0%
41,350 Interpool, Inc. 609,913
-----------
Total Common Stocks
(cost -- $42,626,469) $49,880,146
-----------
Total Investments
(cost -- $51,773,508) 100.2% $59,041,978
Liabilities in Excess of
Other Assets (0.2) (93,309)
----- -----------
Total Net Assets 100.0% $58,948,669
===== ==========
</TABLE>
- -----------------------------------------------------
MANAGED PORTFOLIO
- ------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES -- 1.4%
Federal Home Loan Bank,
$ 525,000 5.36%, 7/1/97 $ 525,000
1,245,000 5.40%, 7/24/97 1,240,705
2,190,000 5.40%, 8/7/97 2,177,845
------------
Total U.S. Government Agency Notes
(cost -- $3,943,550) $ 3,943,550
------------
SHORT-TERM CORPORATE NOTES -- 22.8%
AUTOMOTIVE -- 1.8%
Ford Motor Credit Co.,
$ 4,445,000 5.53%, 7/31/97 $ 4,424,516
590,000 5.54%, 7/31/97 587,276
------------
5,011,792
------------
BANKING -- 4.3%
12,295,000 Norwest Financial Inc.,
5.53%, 7/14/97 12,270,447
------------
CONGLOMERATES -- 4.0%
11,400,000 General Electric Capital
Corp.,
5.54%, 7/31/97 11,347,370
------------
</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 JUNE 30, 1997
------------------------------------------------ ----------- ------- ------ ------- ----------------
<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 1,259
</TABLE>
132
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- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
-----------------------------------------------------
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (CONTINUED)
MACHINERY/ENGINEERING -- 2.9%
Deere (John) Capital Corp.,
$ 4,830,000 5.45%, 7/3/97 $ 4,828,538
2,010,000 5.49%, 7/3/97 2,009,387
1,390,000 5.53%, 7/28/97 1,384,235
------------
8,222,160
------------
MISCELLANEOUS FINANCIAL SERVICES -- 8.9%
10,000,000 American Express Credit
Corp.,
5.54%, 7/29/97 9,956,911
5,380,000 Household Finance Corp.,
5.50%, 7/14/97 5,369,315
9,940,000 Merrill Lynch & Co., Inc.,
5.55%, 7/21/97 9,909,352
------------
25,235,578
------------
TECHNOLOGY -- .9%
IBM Credit Corp.,
675,000 5.50%, 7/15/97 673,556
1,810,000 5.51%, 7/15/97 1,806,122
------------
2,479,678
------------
Total Short-Term Corporate Notes
(cost -- $64,567,025) $ 64,567,025
------------
U.S. TREASURY NOTES AND BONDS -- .6%
$ 700,000 6.25%, 8/15/23 $ 648,046
630,000 7.875%, 4/15/98 640,237
297,500 7.875%, 8/15/01 313,538
------------
Total U.S. Treasury Notes and Bonds
(cost -- $1,512,217) $ 1,601,821
------------
CONVERTIBLE CORPORATE BOND -- .2%
REAL ESTATE -- .2%
$ 614,371 Security Capital Group,
Inc.,
12.00%, 6/30/14(A)
(cost -- $557,508) $ 739,294
------------
<CAPTION>
------------------------------------------------------
SHARES VALUE
------------------------------------------------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK -- .0%
RETAIL -- .0%
2,478 Venture Stores, Inc.,
$3.25 Conv. Pfd.
(cost -- $102,527) $ 39,029
------------
COMMON STOCKS -- 78.2%
AEROSPACE/DEFENSE -- 6.8%
60,000 Lockheed Martin Corp. $ 6,213,750
190,000 McDonnell Douglas Corp. 13,015,000
------------
19,228,750
------------
BANKING -- 11.8%
90,000 BankBoston Corp. 6,485,625
97,000 Citicorp 11,694,562
10,400 First Empire State Corp. 3,504,800
44,000 Wells Fargo & Co. 11,858,000
------------
33,542,987
------------
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
CHEMICALS -- 7.6%
210,000 du Pont (E.I.) de Nemours &
Co. $ 13,203,750
100,000 Hercules, Inc. 4,787,500
80,000 Monsanto Co. 3,445,000
------------
21,436,250
------------
COMPUTER SERVICES -- 1.0%
50,000 Computer Associates
International Inc. 2,784,375
------------
CONGLOMERATES -- 3.2%
200,000 Tenneco, Inc. 9,037,500
------------
CONSUMER PRODUCTS -- 3.9%
325,200 Mattel, Inc. 11,016,150
------------
DRUGS & MEDICAL PRODUCTS -- 2.3%
130,000 Becton, Dickinson & Co. 6,581,250
------------
ENERGY -- 1.3%
70,000 Triton Energy Ltd.* 3,206,875
20,000 Union Pacific Resources
Group, Inc. 497,500
------------
3,704,375
------------
FOOD SERVICES -- 3.6%
210,000 McDonald's Corp. 10,145,625
------------
INSURANCE -- 5.0%
74,700 ACE Ltd. 5,518,462
138,600 EXEL Ltd. 7,311,150
15,400 Transamerica Corp. 1,440,863
------------
14,270,475
------------
MACHINERY/ENGINEERING -- 4.2%
110,000 Caterpillar, Inc. 11,811,250
------------
METALS & MINING -- 2.0%
182,300 Freeport McMoRan Copper &
Gold (Class B) 5,674,088
------------
MISCELLANEOUS FINANCIAL SERVICES -- 10.1%
70,000 American Express Co. 5,215,000
130,000 Countrywide Credit
Industries, Inc. 4,054,375
355,000 Federal Home Loan Mortgage
Corp. 12,203,125
160,600 Federal National Mortgage
Assoc. 7,006,175
------------
28,478,675
------------
PAPER PRODUCTS -- 2.9%
150,000 Champion International Corp. 8,287,500
------------
PRINTING/PUBLISHING -- .3%
25,000 Donnelley (R.R.) & Sons Co. 915,625
------------
</TABLE>
* Non-income producing security.
133
<PAGE> 136
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- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
----------------------------------------------------
SHARES VALUE
----------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RAILROADS -- 2.1%
85,000 Union Pacific Corp. $ 5,992,500
------------
REAL ESTATE -- .4%
811 Security Capital Group,
Inc.(A) 1,020,796
------------
TECHNOLOGY -- 5.0%
38,900 Intel Corp. 5,516,506
206,400 National Semiconductor
Corp.* 6,321,000
48,000 Unitrode Corp.* 2,418,000
------------
14,255,506
------------
TELECOMMUNICATIONS -- 4.2%
800,000 Tele-Communications, Inc.
(Class A)* 11,900,000
------------
WASTE DISPOSAL -- .5%
47,818 Waste Management Inc. 1,536,153
------------
Total Common Stocks
(cost -- $157,878,096) $221,619,830
------------
Total Investments
(cost -- $228,560,923) 103.2% $292,510,549
Liabilities in Excess of
Other Assets (3.2) (9,104,888)
----- ------------
Total Net Assets 100.0% $283,405,661
===== ============
</TABLE>
- -----------------------------------------------------
MONEY MARKET PORTFOLIO
- -----------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES -- 19.8%
$ 80,000 Federal Farm Credit Bank, $ 78,757
5.18%, 10/17/97
960,000 Federal Home Loan Bank, 960,000
6.00%, 7/1/97
----------
Total U.S. Government Agency Notes
(amortized cost -- $1,038,757) $1,038,757
----------
SHORT-TERM CORPORATE NOTES -- 80.5%
AUTOMOTIVE -- 9.1%
$ 150,000 American Honda Finance Corp., $ 149,465
5.58%, 7/24/97
170,000 Ford Motor Credit Co., 168,182
5.58%, 9/8/97
160,000 General Motors Acceptance Corp., 158,641
5.56%, 8/25/97
----------
476,288
----------
<CAPTION>
------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------
<C> <S> <C>
BANKING -- 8.6%
$ 100,000 Morgan (J.P.) & Co., Inc., $ 99,664
5.50%, 7/23/97
150,000 Svenska Handelsbanken Inc., 150,000
5.60%, 7/1/97
200,000 UBS Finance Delaware, Inc., 199,601
5.52%, 7/14/97
----------
449,265
----------
BROKERAGE -- 5.6%
150,000 Goldman Sachs Group, L.P., 148,525
5.62%, 9/2/97
150,000 Morgan Stanley Group, Inc., 149,050
5.56%, 8/11/97
----------
297,575
----------
CONGLOMERATES -- 6.8%
190,000 General Electric Capital Corp., 186,537
5.56%, 10/27/97
175,000 Mitsubishi International, 174,265
5.60%, 7/28/97
----------
360,802
----------
ENTERTAINMENT -- 3.8%
200,000 Walt Disney Co., 199,817
5.48%, 7/7/97
----------
INSURANCE -- 5.8%
120,000 Aetna Services Inc., 119,888
5.62% 7/7/97
185,000 Prudential Funding Corp., 184,574
5.53%, 7/16/97
----------
304,462
----------
MACHINERY/ENGINEERING -- 5.6%
140,000 Deere (John) Capital Corp., 138,363
5.54%, 9/15/97
160,000 Pitney Bowes Credit Corp., 157,690
5.65%, 10/1/97
----------
296,053
----------
MISCELLANEOUS FINANCIAL SERVICES -- 11.4%
160,000 American Express Credit Corp., 159,852
5.56%, 7/7/97
160,000 Associates Corp. N.A., 158,988
5.55%, 8/11/97
110,000 Beneficial Corp., 109,789
5.31%, 7/14/97
170,000 Household Finance Corp., 169,557
5.52%, 7/18/97
----------
598,186
----------
</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 JUNE 30, 1997
--------------------------------------------- ----------- -------- ------ ------- -----------------
<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 1,259
</TABLE>
134
<PAGE> 137
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- --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (CONTINUED)
SOVEREIGN -- 3.4%
$180,000 Eksportfinans A/S,
5.60%, 8/29/97 $ 178,348
----------
TECHNOLOGY -- 6.5%
185,000 IBM Credit Corp.,
5.54%, 8/18/97 183,633
160,000 Motorola Credit Corp.,
5.50% 7/24/97 159,438
----------
343,071
----------
TELECOMMUNICATIONS -- 8.2%
110,000 American Telephone & Telegraph
Co.,
5.52%, 7/28/97 109,544
120,000 Ameritech Corp.,
5.50%, 7/14/97 119,762
200,000 BellSouth Telecommunications
Inc.,
5.47%, 7/2/97 199,970
----------
429,276
----------
TOBACCO/BEVERAGES/FOOD PRODUCTS -- 5.7%
120,000 Coca Cola Co.,
5.40%, 7/29/97 119,491
180,000 PepsiCo Inc.,
5.47%, 7/2/97 179,973
----------
299,464
----------
Total Short-Term Corporate Notes
(amortized cost -- $4,232,607) $4,232,607
----------
Total Investments
(amortized cost -- $5,271,364) 100.3% $5,271,364
Liabilities in Excess of
Other Assets (0.3) (17,639)
----- ----------
Total Net Assets 100.0% $5,253,725
===== =========
</TABLE>
- -----------------------------------------------------
U.S. GOVERNMENT INCOME PORTFOLIO
- -----------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------------------------------------------------
<C> <S> <C>
U.S. TREASURY NOTES -- 49.1%
$ 300,000 5.75%, 8/15/03 $ 289,686
480,000 5.875%, 1/31/99 479,025
1,100,000 6.00%, 9/30/98 1,101,199
650,000 6.25%, 4/30/01 648,173
620,000 6.50%, 10/15/06 617,384
125,000 7.25%, 5/15/04 130,293
----------
Total U.S. Treasury Notes
(cost -- $3,250,869) $3,265,760
----------
U.S. GOVERNMENT AGENCY NOTES -- 28.8%
Federal Farm Credit Bank,
$ 25,000 5.41%, 7/2/97 $ 24,996
75,000 8.65%, 10/1/99 78,633
Federal Home Loan Bank,
100,000 8.09%, 12/28/04 107,937
155,000 8.60%, 8/25/99 162,265
<CAPTION>
----------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------
<C> <S> <C>
Federal Home Loan Mortgage
Corp.,
$ 175,000 6.22%, 3/24/03 $ 171,747
300,000 7.71%, 6/21/04 303,984
125,000 7.75%, 11/7/01 130,546
150,000 8.115%, 1/31/05 161,788
Federal National Mortgage
Assoc.,
60,000 5.375%, 6/10/98 59,672
150,000 9.20%, 9/11/00 162,070
150,000 Private Export Funding Corp.,
9.10%, 10/30/98 155,601
Student Loan Marketing Assoc.,
75,000 7.00%, 3/3/98 75,563
100,000 7.20%, 11/9/00 102,328
Tennessee Valley Authority,
150,000 6.00%, 11/1/00 147,962
65,000 8.375%, 10/1/99 67,783
----------
Total U.S. Government Agency Notes
(cost -- $1,906,262) $1,912,875
----------
MORTGAGE-RELATED SECURITIES -- 13.6%
Federal National Mortgage
Assoc.,
$ 173,804 6.50%, 5/1/26 $ 166,363
182,890 7.00%, 1/1/10 183,403
146,602 8.00%, 8/1/24 150,175
115,003 8.00%, 12/1/24 118,056
7,502 9.00%, 8/1/02 7,778
17,538 9.50%, 12/1/06 18,307
40,110 9.50%, 3/1/19 43,180
72,407 9.50%, 12/1/19 77,814
Government National Mortgage
Assoc.,
133,808 8.50%, 3/15/25 139,117
----------
Total Mortgage-Related Securities
(cost -- $889,581) $ 904,193
----------
CORPORATE NOTES -- 6.9%
CONGLOMERATES -- 1.6%
$ 100,000 General Electric Capital Corp.,
8.375%, 3/1/01 $ 105,481
----------
MISCELLANEOUS FINANCIAL SERVICES -- 5.3%
125,000 Associates Corp., N.A.,
5.25%, 3/30/00 120,928
125,000 International Lease Finance
Corp.,
6.125%, 11/1/99 124,060
100,000 Lehman Brothers Holdings, Inc.,
8.50%, 5/1/07 107,652
----------
352,640
----------
Total Corporate Notes
(cost -- $451,722) $ 458,121
----------
Total Investments
(cost -- $6,498,434) 98.4% $6,540,949
Other Assets in Excess of
Liabilities 1.6 106,978
----- ----------
Total Net Assets 100.0% $6,647,927
===== =========
</TABLE>
See accompanying notes to financial statements.
135
<PAGE> 138
OCC ACCUMULATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1997
<TABLE>
<CAPTION>
U.S.
MONEY GOVERNMENT
EQUITY SMALL CAP MANAGED MARKET INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost - $19,004,230, $51,773,508,
$228,560,923, $5,271,364 and
$6,498,434, respectively).......... $25,218,084 $59,041,978 $292,510,549 $5,271,364 $6,540,949
Cash................................. 52,668 7,817 20,234 5,443 27,445
Receivable from investments sold..... -- 390,380 -- -- --
Receivable from fund shares sold..... 14,368 103,946 154,952 -- 14,884
Dividends receivable................. 20,848 16,266 101,991 -- --
Interest receivable.................. -- 6,795 119,182 -- 96,672
Other assets......................... 1,004 1,406 4,301 585 1,000
----------- ----------- ------------ ---------- ----------
Total Assets....................... 25,306,972 59,568,588 292,911,209 5,277,392 6,680,950
----------- ----------- ------------ ---------- ----------
LIABILITIES
Payable for investments purchased.... -- 589,999 9,303,187 -- --
Payable for fund shares redeemed..... 952 6,101 136,128 2,614 2,573
Dividends payable.................... -- -- -- 7,460 11,258
Investment advisory fee payable...... 1,667 3,808 18,581 173 275
Other payables and accrued
expenses........................... 11,643 20,011 47,652 13,420 18,917
----------- ----------- ------------ ---------- ----------
Total Liabilities.................. 14,262 619,919 9,505,548 23,667 33,023
----------- ----------- ------------ ---------- ----------
Total Net Assets................... $25,292,710 $58,948,669 $283,405,661 $5,253,725 $6,647,927
=========== =========== ============ ========== ==========
COMPOSITION OF NET ASSETS
Par value ($.01 per share)........... $ 7,716 $ 23,833 $ 71,753 $ 52,537 $ 6,436
Paid-in-capital in excess of par..... 18,627,928 48,759,952 213,136,971 5,201,207 6,622,946
Accumulated undistributed net
investment income.................. 139,630 129,800 1,561,847 -- --
Accumulated net realized gain (loss)
on investments..................... 303,582 2,766,614 4,685,464 (19) (23,970)
Net unrealized appreciation on
investments........................ 6,213,854 7,268,470 63,949,626 -- 42,515
----------- ----------- ------------ ---------- ----------
Total Net Assets................... $25,292,710 $58,948,669 $283,405,661 $5,253,725 $6,647,927
=========== =========== ============ ========== ==========
Fund shares outstanding.............. 771,634 2,383,326 7,175,255 5,253,743 643,563
----------- ----------- ------------ ---------- ----------
Net asset value per share............ $ 32.78 $ 24.73 $ 39.50 $ 1.00 $ 10.33
=========== =========== ============ ========== ==========
</TABLE>
See accompanying notes to financial statements.
136
<PAGE> 139
OCC ACCUMULATION TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
U.S.
MONEY GOVERNMENT
EQUITY SMALL CAP MANAGED MARKET INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------- -------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends........................... $ 149,752 $ 153,844 $ 1,298,226 $ -- $ --
Interest............................ 97,795 189,707 1,254,905 129,999 161,985
---------- ---------- ----------- -------- --------
Total investment income.......... 247,547 343,551 2,553,131 129,999 161,985
---------- ---------- ----------- -------- --------
OPERATING EXPENSES
Investment advisory fees (note
2A).............................. 86,822 172,578 888,578 9,477 14,993
Custodian fees (note 1G)............ 7,528 15,699 20,146 4,686 10,174
Transfer and dividend disbursing
agent fees....................... 4,626 4,751 5,782 4,527 6,033
Audit fees.......................... 4,165 4,413 8,889 3,873 3,838
Trustees' fees and expenses......... 2,203 6,549 12,767 -- --
Reports and notices to
shareholders..................... 1,937 4,136 20,179 612 1,136
Legal fees.......................... 1,091 1,560 4,699 955 900
Miscellaneous....................... 246 4,891 30,941 2,820 1,238
---------- ---------- ----------- -------- --------
Total operating expenses......... 108,618 214,577 991,981 26,950 38,312
Less: Investment advisory fees
waived (note 2A)............... -- -- -- (3,439) (13,132)
Less: Expenses offset (note
1G)............................ (701) (826) (698) (208) (196)
---------- ---------- ----------- -------- --------
Net operating expenses......... 107,917 213,751 991,283 23,303 24,984
---------- ---------- ----------- -------- --------
Net investment income.......... 139,630 129,800 1,561,848 106,696 137,001
---------- ---------- ----------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS - NET
Net realized gain (loss) on
investments...................... 303,581 2,775,415 4,685,469 (6) (16,079)
Net change in unrealized
appreciation (depreciation) on
investments...................... 2,471,711 4,013,251 24,338,046 -- 26,949
---------- ---------- ----------- -------- --------
Net realized gain (loss) and
change in unrealized
appreciation (depreciation)
on investments.............. 2,775,292 6,788,666 29,023,515 (6) 10,870
---------- ---------- ----------- -------- --------
Net increase in net assets resulting
from operations..................... $2,914,922 $6,918,466 $30,585,363 $106,690 $147,871
========== ========== =========== ======== ========
</TABLE>
See accompanying notes to financial statements.
137
<PAGE> 140
OCC ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL CAP PORTFOLIO MANAGED PORTFOLIO
---------------------------- ---------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER ENDED JUNE 30, DECEMBER ENDED JUNE 30, DECEMBER 31,
1997(1) 31, 1996 1997(1) 31, 1996 1997(1) 1996
-------------- ----------- -------------- ----------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income.................. $ 139,630 $ 188,895 $ 129,800 $ 226,925 $ 1,561,848 $ 2,161,819
Net realized gain (loss) on
investments.......................... 303,581 672,433 2,775,415 1,679,412 4,685,469 6,639,637
Net change in unrealized appreciation
(depreciation) on investments........ 2,471,711 2,218,378 4,013,251 2,142,715 24,338,046 18,285,659
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets
resulting from operations........ 2,914,922 3,079,706 6,918,466 4,049,052 30,585,363 27,087,115
----------- ----------- ----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income.................. (188,895) (111,781) (226,925) (211,870) (2,161,819) (1,378,070)
Net realized gains..................... (672,433) (223,969) (1,600,322) (544,700) (6,639,642) (878,874)
----------- ----------- ----------- ----------- ------------ ------------
Total dividends and distributions
to shareholders.................. (861,328) (335,750) (1,827,247) (756,570) (8,801,461) (2,256,944)
----------- ----------- ----------- ----------- ------------ ------------
FUND SHARE TRANSACTIONS
Net proceeds from sales................ 3,388,606 9,184,397 20,049,793 17,604,938 82,323,735 79,297,599
Reinvestment of dividends and
distributions........................ 861,328 335,750 1,827,247 756,533 8,801,461 2,256,944
Cost of shares redeemed................ (853,816) (1,457,087) (2,276,261) (3,401,674) (10,231,531) (24,844,767)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net
assets from fund share
transactions..................... 3,396,118 8,063,060 19,600,779 14,959,797 80,893,665 56,709,776
----------- ----------- ----------- ----------- ------------ ------------
Total increase (decrease) in net
assets....................... 5,449,712 10,807,016 24,691,998 18,252,279 102,677,567 81,539,947
NET ASSETS
Beginning of period.................... 19,842,998 9,035,982 34,256,671 16,004,392 180,728,094 99,188,147
----------- ----------- ----------- ----------- ------------ ------------
End of period (including undistributed
net investment income of $139,630 and
$188,895; $129,800 and $226,925;
$1,561,847 and $2,161,818; $0 and $0
and $0 and $0, respectively)......... $ 25,292,710 $19,842,998 $ 58,948,669 $34,256,671 $283,405,661 $180,728,094
=========== =========== =========== =========== ============ ============
SHARES ISSUED AND REDEEMED
Issued................................. 111,055 339,540 885,839 837,586 2,214,230 2,403,077
Issued in reinvestment of dividends and
distributions........................ 28,807 13,029 83,857 38,520 243,943 73,016
Redeemed............................... (28,038) (53,448) (101,620) (164,530) (274,288) (775,472)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease)............ 111,824 299,121 868,076 711,576 2,183,885 1,700,621
=========== =========== =========== =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET PORTFOLIO INCOME PORTFOLIO
---------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER ENDED JUNE 30, DECEMBER 31,
1997(1) 31, 1996 1997(1) 1996
-------------- ----------- -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income................... $ 106,696 $ 181,416 $ 137,001 $ 130,053
Net realized gain (loss) on
investments........................... (6) (14) (16,079) (7,891)
Net change in unrealized appreciation
(depreciation) on investments......... -- -- 26,949 (26,424)
----------- ----------- ---------- ----------
Net increase in net assets resulting
from operations................... 106,690 181,402 147,871 95,738
----------- ----------- ---------- ----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................... (106,696) (181,416) (137,001) (130,053)
Net realized gains...................... -- (46) -- --
----------- ----------- ---------- ----------
Total dividends and distributions to
shareholders...................... (106,696) (181,462) (137,001) (130,053)
----------- ----------- ---------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from sales................. 2,103,920 6,146,104 3,495,129 2,180,216
Reinvestment of dividends and
distributions......................... 99,926 182,704 125,744 130,663
Cost of shares redeemed................. (2,229,157) (5,405,790) (405,814) (297,024)
----------- ----------- ---------- ----------
Net increase (decrease) in net
assets from fund share
transactions...................... (25,311) 923,018 3,215,059 2,013,855
----------- ----------- ---------- ----------
Total increase (decrease) in net
assets........................ (25,317) 922,958 3,225,929 1,979,540
NET ASSETS
Beginning of period..................... 5,279,042 4,356,084 3,421,998 1,442,458
----------- ----------- ---------- ----------
End of period (including undistributed
net investment income of $139,630 and
$188,895; $129,800 and $226,925;
$1,561,847 and $2,161,818; $0 and $0
and $0 and $0, respectively).......... $ 5,253,725 $ 5,279,042 $6,647,927 $3,421,998
=========== =========== ========== ==========
SHARES ISSUED AND REDEEMED
Issued.................................. 2,103,920 6,146,104 341,129 209,939
Issued in reinvestment of dividends and
distributions......................... 99,926 182,704 12,193 12,589
Redeemed................................ (2,229,157) (5,405,790) (39,494) (28,592)
----------- ----------- ---------- ----------
Net increase (decrease)............. (25,311) 923,018 313,828 193,936
=========== =========== ========== ==========
</TABLE>
- ---------------
(1) Unaudited.
See accompanying notes to financial statements.
138
<PAGE> 141
OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
OCC Accumulation Trust (the "Trust") was organized May 12, 1994 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end, management investment company.
The Equity Portfolio, the Small Cap Portfolio, the Managed Portfolio, the Money
Market Portfolio and the U.S. Government Income Portfolio (collectively, the
"Portfolios") are five of six portfolios offered in the Trust. 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 U.S. Government Income 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 each Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders; accordingly,
no Federal income tax provision is required.
(C) 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.
(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 Money
139
<PAGE> 142
OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) DIVIDENDS AND DISTRIBUTIONS (CONTINUED)
Market and U.S. Government Income 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 record dividends and distributions to its
shareholders on the ex-dividend date. The amount of dividends and distributions
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 income tax treatment;
temporary differences do not require reclassification. To the extent dividends
and/or distributions exceed current and accumulated earnings and profits for
Federal income tax purposes, they are reported as dividends and/or distributions
of paid-in-capital or tax return of capital.
(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 Portfolios benefit 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; .40% for the Money Market Portfolio
and .60% for the U.S. Government Income 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 expenses offset) of
average net assets on an annual basis.
(B) Total brokerage commissions paid by the Equity, Small Cap and Managed
Portfolios amounted to $4,820, $80,508 and $64,187, respectively, of which
Oppenheimer & Co., Inc., an affiliate of the Adviser, received $1,518, $20,686
and $24,908, respectively, for the six months ended June 30, 1997.
140
<PAGE> 143
OCC ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
(3) PURCHASES AND SALES OF SECURITIES
For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
EQUITY SMALL CAP MANAGED MONEY MARKET INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
---------- ----------- ----------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Purchases.............. $2,006,683 $35,011,021 $51,856,834 $24,904,984 $ 6,237,713
Sales.................. 1,828,102 20,175,495 13,672,297 25,044,398 3,017,417
</TABLE>
- ---------------
*All short-term securities and maturities.
(4) UNREALIZED APPRECIATION (DEPRECIATION) AND COST OF INVESTMENTS FOR FEDERAL
INCOME TAX PURPOSES
At June 30, 1997, the composition of unrealized appreciation (depreciation)
on 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.................... $ 6,214,033 $ (179) $ 6,213,854 $ 19,004,230
Small Cap Portfolio................. 8,547,833 (1,288,163) 7,259,670 51,782,308
Managed Portfolio................... 64,137,022 (187,396) 63,949,626 228,560,923
Money Market Portfolio.............. -- -- -- 5,271,364
U.S. Government Income Portfolio.... 69,498 (28,671) 40,827 6,500,122
</TABLE>
(5) AFFILIATED TRANSACTION
On July 22, 1997, PIMCO Advisors L.P. ("PIMCO Advisors"), a registered
investment adviser with approximately $119 billion in assets under management
through various subsidiaries and its affiliate Thomson Advisory Group Inc.
("TAG"), signed an Amended and Restated Merger Agreement with Oppenheimer Group,
Inc. ("OGI"), its subsidiary Oppenheimer Financial Corp. ("Opfin") and certain
related parties pursuant to which PIMCO Advisors and TAG and its successor, will
acquire the one-third managing general partner interest in Oppenheimer Capital,
its 1.0% general partner interest in OpCap Advisors, and its 1.0% general
partner interest in Oppenheimer Capital L.P. (the "Transaction"). If the
Transaction is consummated, it will involve a change in control of Oppenheimer
Capital and its subsidiary OpCap Advisors which will constitute an assignment
and termination of the Investment Advisory Agreement with the Trust. At a
meeting held on February 28, 1997, the Trustees, including all independent
Trustees, approved and determined to submit to shareholders for approval, a new
Investment Advisory Agreement with OpCap Advisors, substantially upon the same
terms and conditions as the existing Investment Advisory Agreement. Proxy
material will be sent to shareholders concerning the new Investment Advisory
Agreement.
141
<PAGE> 144
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INCOME FROM DIVIDENDS AND
INVESTMENT OPERATIONS DISTRIBUTIONS
----------------------------------------------- ----------------------------
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
Six Months Ended June 30, 1997(6)..... $ 30.07 $ 0.18 $3.81 $3.99 ($0.28) ($1.00) $ 32.78
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>
RATIOS
-----------------------------------------------
RATIO OF RATIO OF
NET NET
OPERATING INVESTMENT
NET EXPENSES INCOME
ASSETS, TO TO
END OF AVERAGE AVERAGE PORTFOLIO AVERAGE
TOTAL PERIOD NET NET TURNOVER COMMISSION
RETURN* (000'S) ASSETS(5) ASSETS RATE RATE
------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
EQUITY PORTFOLIO
Six Months Ended June 30, 1997(6)..... 13.7% $25,293 1.00% (2,4) 1.29% (2,4) 10% $ 0.0566
Year Ended December 31, 1996.......... 23.4% 19,843 0.93% (1) 1.29% (1) 36% 0.0588
Year Ended December 31, 1995.......... 38.9% 9,036 0.72% (1) 1.74% (1) 31% --
September 16, 1994(3) to December 31,
1994................................. (2.4%) 4,281 0.72% (1,4) 1.80% (1,4) 6% --
</TABLE>
(1) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.05% 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
Six Months Ended June 30, 1997(6)..... $ 22.61 $ 0.03 $3.14 $3.17 ($0.13) ($0.92) $ 24.73
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> <C> <C>
Six Months Ended June 30, 1997(6)..... 14.6% $58,949 0.99% (2,4) 0.60% (2,4) 54% $ 0.0544
Year Ended December 31, 1996.......... 18.7% 34,257 0.93% (1) 1.03% (1) 50% 0.0493
Year Ended December 31, 1995.......... 15.2% 16,004 0.74% (1) 1.75% (1) 69% --
September 16, 1994(3) to December 31,
1994................................. (0.6%) 9,210 0.74% (1,4) 1.22% (1,4) 32% --
</TABLE>
(1) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.01% 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
Six Months Ended June 30, 1997(6)..... $ 36.21 $ 0.18 $ 4.73 $ 4.91 ($0.40) ($1.22) $ 39.50
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> <C> <C>
Six Months Ended June 30, 1997(6)..... 14.0% $283,406 0.89% (2,4) 1.41% (2,4) 7% $ 0.0574
Year Ended December 31, 1996.......... 22.8% 180,728 0.84% (1) 1.66% (1) 27% 0.0592
Year Ended December 31, 1995.......... 45.6% 99,188 0.66% (1) 1.85% (1) 22% --
September 16, 1994(3) to December 31,
1994................................. (4.4%) 54,943 0.66% (1,4) 2.34% (1,4) 8% --
</TABLE>
(1) During the periods noted above, the Adviser waived a portion of its fees. If
such waivers had not been in effect, the ratios of net operating expenses to
average net assets and the ratios of net investment income to average net
assets would have been 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>
MONEY MARKET PORTFOLIO
Six Months Ended June 30, 1997(6)..... $ 1.00 $ 0.02 ($0.00) $0.02 ($0.02) -- $ 1.00
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> <C> <C>
Six Months Ended June 30, 1997(6)..... 2.3% $5,254 0.99% (1,2,4) 4.50% (1,2,4) -- --
Year Ended December 31, 1996.......... 4.5% 5,279 1.01% (1) 4.43% (1) -- --
Year Ended December 31, 1995.......... 5.1% 4,356 1.00% (1) 4.94% (1) -- --
September 16, 1994(3) to December 31,
1994................................. 1.2% 3,520 1.00% (1,4) 4.13% (1,4) -- --
</TABLE>
(1) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.14% and 4.36%, annualized,
respectively, for the six months ended June 30, 1997, 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.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
U.S. GOVERNMENT INCOME PORTFOLIO
Six Months Ended June 30, 1997(6)..... $ 10.38 $ 0.28 ($0.05) $0.23 ($0.28) -- $ 10.33
Year Ended December 31, 1996.......... 10.62 0.55 (0.24) 0.31 (0.55) -- 10.38
January 3, 1995(3) to
December 31, 1995.................... 10.00 0.60 0.68 1.28 (0.60) ($0.06) 10.62
<CAPTION>
U.S. GOVERNMENT INCOME PORTFOLIO
<S> <C> <C> <C> <C> <C>
Six Months Ended June 30, 1997(6)..... 2.2% $6,648 1.01% (1,2,4) 5.48% (1,2,4) 60% --
Year Ended December 31, 1996.......... 3.0% 3,422 0.96% (1) 5.27% (1) 31% --
January 3, 1995(3) to
December 31, 1995.................... 13.1% 1,442 0.75% (1,4) 5.75% (1,4) 65% --
</TABLE>
(1) During the periods noted above, the Adviser waived a portion or all of its
fees and assumed a portion of the Portfolio's operating expenses. If such
waivers and assumptions had not been in effect, the ratios of net operating
expenses to average net assets and the ratios of net investment income to
average net assets would have been 1.53% and 4.96%, annualized,
respectively, for the six months ended June 30, 1997, 2.34% and 3.87%,
respectively, for the year ended December 31, 1996 and 4.73% and 1.77%,
annualized, respectively, for the period January 3, 1995 (commencement of
operations) to December 31, 1995.
- ---------------
(2) Average net assets for the six months ended June 30, 1997 were $21,885,297,
$43,502,064, $223,985,374, $4,777,776 and $5,038,930 for the Equity, Small
Cap, Managed, Money Market and U.S. Government Income Portfolios,
respectively.
(3) Commencement of operations.
(4) Annualized.
(5) For fiscal periods ending after September 1, 1995, the ratios are calculated
to include expenses offset by earnings credits from a custodian bank (See
note 1G in Notes to Financial Statements).
(6) Unaudited.
* Assumes reinvestment of all dividends and distributions. Aggregate (not
annualized) total return is shown for any period shorter than one year.
142
<PAGE> 145
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
Gavin Albert Vice President
Robert J. Bluestone Vice President
Timothy J. Curro Vice President
Pierre Daviron Vice President
John C. Giusio, Jr. Vice President
Richard J. Glasebrook, II Vice President
Benjamin D. Gutstein Vice President
Vikki Hanges Vice President
Timothy J. McCormack 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> 146
(This page intentionally left blank)
<PAGE> 147
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> 148
[MONY LOGO]
The Mutual Life Insurance Company of New York
Administrative Offices
1740 Broadway, New York, NY 10019
ADDRESS CORRECTION REQUESTED
----------------------
BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 8048
NEW YORK, NEW YORK
----------------------
Form No. 14005SL (8/97)
