<PAGE> 1
REGISTRATION NO. 2-95501
FISCAL YEAR END DECEMBER 31
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20459
FORM N-1A
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 13
AND
REGISTRATION STATEMENT
UNDER THE
INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 12
------------------------
MONY SERIES FUND, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ARTICLES OF INCORPORATION)
1740 BROADWAY, NEW YORK, NEW YORK 10019
(ADDRESS AND PRINCIPAL EXECUTIVE OFFICE)
(212)708-2000
(TELEPHONE NUMBER)
EDWARD P. BANK, ESQ.
VICE PRESIDENT AND DEPUTY GENERAL COUNSEL
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
1740 BROADWAY, NEW YORK, NEW YORK 10019
(NAME AND ADDRESS OF AGENT FOR SERVICE)
It is proposed that this filing will become effective on May 1, 1997 pursuant to
Rule 485 (a).
The Registrant has registered an indefinite number of securities pursuant
to Rule 24f-2 under the Investment Company Act of 1940. The Form 24f-2 was filed
on February 28, 1997.
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MONY SERIES FUND, INC.
CROSS REFERENCE SHEET
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PART A INFORMATION REQUIRED IN A PROSPECTUS PROSPECTUS SECTION
- -------- ---------------------------------------------- -----------------------------------
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Item 1 Cover Page.................................... Cover Page
Item 2 Synposis...................................... Prospectus Summary
Item 3 Condensed Financial Information............... Financial Highlights Table
Item 4 General Description of Registrant, Depositor,
Structure of the Fund; Investment and
Portfolio Companies......................... Objectives and Policies of the
Portfolios; Investment
Restrictions Applicable to the
Portfolio
Item 5 Deductions and Expenses....................... Investment Management Arrangements
and Expenses
Item 6 Capital Stock and other Securities............ Structure of the Fund
Item 7 Purchase of Securities Being Offered.......... Purchase and Redemption of Shares;
Determination of Net Asset Value
Item 8 Redemption or Repurchase...................... Purchase and Redemption of Shares;
Determination of Net Asset Value
Item 9 Legal Proceedings............................. Not Applicable
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<TABLE>
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INFORMATION REQUIRED IN A CAPTION IN STATEMENT OF ADDITIONAL
PART B STATEMENT OF ADDITIONAL INFORMATION INFORMATION
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Item 10 Cover Page.................................... Cover Page
Item 11 Table of Contents............................. Table of Contents
Item 12 General Information and History............... General Information
Item 13 Investment Objectives and Policies............ Investment Restrictions
Item 14 Management of the Registrant.................. Management of the Fund; Investment
Advisory and other Services
Item 15 Control Persons and Principal Holders of
Securities.................................. Control Persons
Item 16 Investment Advisory and other Services........ Investment Advisory and other
Services; Portfolio Brokerage and
other Services
Item 17 Brokerage Allocation.......................... Portfolio Brokerage and related
Practices; Investment Advisory
and other Services
Item 18 Capital Stock and Other Securities............ General Information
</TABLE>
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<TABLE>
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INFORMATION REQUIRED IN A CAPTION IN STATEMENT OF ADDITIONAL
PART B STATEMENT OF ADDITIONAL INFORMATION INFORMATION
- -------- ---------------------------------------------- -----------------------------------
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Item 19 Purchase, Redemption, and Pricing of.......... Portfolio Brokerage and Related
Securities Being Offered
Practices; Investment Advisory
and other Services
Item 20 Tax Status.................................... Federal Income Tax Status
Item 21 Underwriters.................................. Investment Advisory and other
Services
Item 22 Calculation of Performance Data............... Performance Data
Item 23 Financial Statements.......................... Financial Statements
PART C OTHER INFORMATION
- -------- ----------------------------------------------
Item 24 Financial Statements and Exhibits
Item 25 Persons Controlled by or Under Common Control
Item 26 Number of Holders of Securities
Item 27 Indemnification
Item 28 Business and Other Connections of Investment
Adviser
Item 29 Principal Underwriters
Item 30 Location of Accounts and Records
Item 31 Management Services
Item 32 Undertakings
Signatures
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<PAGE> 4
PROSPECTUS
DATED MAY 1, 1997
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is intended to provide a wide range of investment
alternatives through its seven separate Portfolios, each of which is, for
investment and federal tax purposes, in effect a separate fund. A separate class
of stock will be issued for each Portfolio.
Shares of all Portfolios of the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund the benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and for allocation to MONY
America Variable Account A and MONY Variable Account A to fund benefits under
Flexible Payment Variable Annuity Contracts issued by those companies. Shares of
all Portfolios of the Fund, other than the Government Securities Portfolio, are
sold to MONY America and MONY for allocation to MONY America Variable Account S
and MONY Variable Account S to fund benefits under Variable Life Insurance with
Additional Premium Option contracts issued by those companies and to MONY for
allocation to Keynote Series Account ("Keynote") to fund benefits under
Individual Variable Annuity Contracts. These variable accounts ("Variable
Accounts") invest in shares of the Fund in accordance with allocation
instructions received from Contract holders. Such allocation rights are further
described in the attached prospectus for one of the contracts. The Variable
Accounts invest in shares of the Fund through subaccounts that correspond to the
Portfolios. The Variable Accounts will redeem shares of the Fund to the extent
necessary to provide benefits under the Contracts or for such other purposes as
may be consistent with the Contracts.
The investment objectives of the Portfolios are:
EQUITY INCOME PORTFOLIO: A high level of current income, through
investment in a diversified portfolio of common stocks with relatively high
current yields. Capital appreciation is a secondary objective.
EQUITY GROWTH PORTFOLIO: A high level of capital appreciation through
investment in a diversified portfolio of common stocks with potential for
above average growth in earnings and dividends. Current income is a
secondary objective.
INTERMEDIATE TERM BOND PORTFOLIO: The maximum income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities, U.S. Government obligations, and
money market instruments, together having a dollar-weighted average life of
between 4 and 8 years.
LONG TERM BOND PORTFOLIO: The maximum income over the longer term
consistent with preservation of capital, through investment in highly-rated
debt securities, U.S. Government obligations, and money market instruments,
together having a dollar-weighted average life of more than 8 years.
GOVERNMENT SECURITIES PORTFOLIO: The maximum current income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities of the United States government
and its agencies and money market instruments, with a dollar-weighted
average life of up to ten years at the time of purchase.
MONEY MARKET PORTFOLIO: The maximum current income consistent with
preservation of capital and maintenance of liquidity, through investment in
money market instruments. The Money Market Portfolio is neither insured nor
guaranteed by the United States Government, and, while the Money Market
Portfolio seeks to maintain a stable net asset value of $1.00 per share,
there is no assurance that it will be able to do so.
DIVERSIFIED PORTFOLIO: A high total investment return consistent with a
diversified, managed mix of common stocks, bonds and money market
instruments.
There can be no assurance that the objective of any Portfolio will be
realized. See INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS at pages
11-15.
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE FUND THAT A
PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING. READ THIS PROSPECTUS
CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE.
ADDITIONAL INFORMATION ABOUT THE FUND HAS BEEN FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY CALLING 1-800-487-6669 OR
BY SENDING A REQUEST TO: MONY SERIES FUND, INC., 1740 BROADWAY, NEW YORK, NEW
YORK 10019. THE STATEMENT OF ADDITIONAL INFORMATION, DATED MAY 1, 1997, IS
INCORPORATED BY REFERENCE INTO THIS PROSPECTUS.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE> 5
MONY SERIES FUND, INC.
PROSPECTUS
NO DEALER, SALESMAN, OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND OR THE INVESTMENT
ADVISER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
CONTENTS
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PAGE
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PROSPECTUS SUMMARY.................................................................... 1
The Fund............................................................................ 1
The Accounts and the Contracts...................................................... 1
Investment Objectives and Risks of the Portfolios................................... 1
Investment Adviser.................................................................. 2
Investment Management Fees and Expenses............................................. 2
Responsibility for Day-to-Day Management of the Fund................................ 3
Purchase and Redemption of Shares................................................... 3
Financial Highlights................................................................ 3
Financial Highlights Table.......................................................... 4
STRUCTURE OF THE FUND................................................................. 11
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS.................................. 11
Equity Income Portfolio............................................................. 11
Equity Growth Portfolio............................................................. 12
Intermediate Term Bond Portfolio.................................................... 12
Long Term Bond Portfolio............................................................ 13
Government Securities Portfolio..................................................... 13
Money Market Portfolio.............................................................. 14
Diversified Portfolio............................................................... 14
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS.................................. 15
Loans of Portfolio Securities....................................................... 16
State Law Restrictions.............................................................. 16
Federal Income Tax Status........................................................... 17
MANAGEMENT OF THE FUND................................................................ 19
Investment Management Arrangements and Expenses..................................... 19
Responsibility for Day-to-Day Management of the Fund................................ 20
Custodian, Transfer Agent, and Dividend Disbursing Agent............................ 20
PURCHASE AND REDEMPTION OF SHARES..................................................... 21
DETERMINATION OF NET ASSET VALUE...................................................... 21
Valuation of Equity Income and Equity Growth Portfolios............................. 22
Valuation of Intermediate Term Bond, Long Term Bond, and Government
Securities Portfolios............................................................ 22
Valuation of Money Market Portfolio................................................. 22
Valuation of Diversified Portfolio.................................................. 23
SHARES IN THE FUND.................................................................... 23
Voting Rights....................................................................... 23
Dividends, Distributions, and Taxes................................................. 24
Shareholder Reports and Inquiries................................................... 25
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS.......................................... 25
ADDITIONAL INFORMATION................................................................ 25
Appendix A: Securities in Which the Money Market Portfolio May Currently Invest..... A-1
Appendix B: Debt Ratings............................................................ B-1
</TABLE>
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</TABLE>
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PROSPECTUS SUMMARY
The following summary should be read in conjunction with the detailed
information appearing elsewhere in this Prospectus.
THE FUND
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is a Maryland corporation organized on December 14, 1984.
The Fund currently consists of seven (7) separate Portfolios: the Equity Income
Portfolio, the Equity Growth Portfolio, the Intermediate Term Bond Portfolio,
the Long Term Bond Portfolio, the Government Securities Portfolio, the Money
Market Portfolio, and the Diversified Portfolio. Each Portfolio is, for
investment and federal tax purposes, in effect a separate investment fund, and
the Fund will issue a separate class of capital stock for each Portfolio. In
other respects the Fund is treated as one entity. For more detailed information,
see STRUCTURE OF THE FUND at page 11.
THE ACCOUNTS AND THE CONTRACTS
Shares of all Portfolios in the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and to those companies for
allocation to MONY America Variable Account A and MONY Variable Account A to
fund benefits under Flexible Payment Variable Annuity contracts issued by those
companies. Shares of all Portfolios, other than the Government Securities
Portfolio, are also sold to the MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option contracts issued by those
companies. In addition, shares of the Fund are sold to MONY for allocation to
Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts and, until June 24, 1994, were sold to MONY for allocation to
Keynote Series Account to fund benefits under Group Annuity Contracts issued by
MONY. Each Contract holder allocates the net premiums and the assets relating to
these Contracts, within the limitations described in the Contracts, among the
subaccounts of these variable accounts ("Variable Accounts") which in turn are
invested in the corresponding Portfolios of the Fund. Contract holders should
consider that the investment return experience of the Portfolios will affect the
value of the Contracts and may affect the amount of benefits received under the
Contracts. The attached prospectus for the Contracts describes the Contracts and
the relationship between changes in the value of shares of each Portfolio and
changes in the benefits payable under the Contracts. The rights of the Variable
Accounts as shareholders should be distinguished from the rights of a Contract
holder which are described in the contracts. Because the shares of the Fund will
be sold to MONY America and MONY for allocation to the Variable Accounts, the
terms "shareholder" or "shareholders" in this Prospectus refer to those
Companies.
INVESTMENT OBJECTIVES AND RISKS OF THE PORTFOLIOS
Each of the Portfolios seeks to achieve a different investment objective.
Accordingly, each Portfolio can be expected to have different investment results
and to be subject to different financial and market risks and current income
volatility. Financial risk refers to the ability of an issuer of a debt security
to pay principal and interest on that security, and to the earnings stability
and overall financial soundness of an issuer of an equity security. Market risk
refers to the degree to which the price of a security will react to changes in
conditions in securities markets in general and, with particular reference to
debt securities, to changes in the overall level of interest rates. Current
income volatility refers to the degree and rapidity with which changes in the
overall level of interest rates become reflected in the level of current income
of the Portfolios.
The investment objectives and risks of the Portfolios are:
Equity Income Portfolio: The Equity Income Portfolio seeks a high level of
current income with capital appreciation as the secondary objective. The
Portfolio will invest primarily in common stocks and other equity securities.
The Equity Income Portfolio should be subject to moderate levels of both
financial and market risk.
1
<PAGE> 8
Equity Growth Portfolio: The Equity Growth Portfolio seeks long-term
appreciation of capital with current income as the secondary objective. The
Portfolio will invest primarily in common stocks and other equity securities.
The Equity Growth Portfolio should be subject to a moderate level of financial
risk and a somewhat higher level of market risk than the Equity Income
Portfolio.
Intermediate Term Bond Portfolio: The Intermediate Term Bond Portfolio,
having a dollar-weighted average life of between 4 and 8 years, seeks to
maximize income over the intermediate term consistent with preservation of
capital. The Portfolio will invest primarily in intermediate term bonds. The
Intermediate Term Bond Portfolio should be subject to relatively little
financial risk and a moderate level of market risk.
Long Term Bond Portfolio: The Long Term Bond Portfolio, having a
dollar-weighted average life of more than 8 years, seeks to maximize income over
the longer term consistent with preservation of capital. The Portfolio will
invest primarily in long term bonds. The Long Term Bond Portfolio should be
subject to relatively little financial risk and a higher level of market risk
than the Intermediate Term Bond Portfolio.
Government Securities Portfolio: The Government Securities Portfolio seeks
to maximize current income over the intermediate term consistent with
preservation of capital, through investment in highly-rated debt securities of
the United States government and its agencies and money market instruments, with
a dollar-weighted average life of up to ten years at the time of purchase. The
Government Securities Portfolio should be subject to relatively little financial
risk and a moderate level of market risk.
Money Market Portfolio: The Money Market Portfolio seeks to maximize
current income consistent with the preservation of capital and the maintenance
of liquidity. The Portfolio will invest primarily in money market instruments.
The Money Market Portfolio should be subject to little market risk or financial
risk but should be subject to a high level of current income volatility.
Diversified Portfolio: The Diversified Portfolio seeks a total investment
return consistent with a diversified portfolio having a managed mix of common
stocks, bonds and money market instruments. The Portfolio will invest only in
those types of securities that the Equity Income, Equity Growth, Intermediate
Term Bond, Long Term Bond, Government Securities, Money Market, and Diversified
Portfolios may invest in. The mix of investments will be determined by the
Investment Adviser based on its view of market conditions. The Diversified
Portfolio will be subject to varying levels of market and financial risk
depending upon its asset mix. It may at times be subject to a relatively high
level of current income volatility.
There can be no assurance that the objectives of any Portfolio will be
realized. For more detailed information, see INVESTMENT OBJECTIVES AND POLICIES
OF THE PORTFOLIOS at pages 11-15 and INVESTMENT RESTRICTIONS APPLICABLE TO THE
PORTFOLIOS at pages 15-18.
INVESTMENT ADVISER
The Investment Adviser of the Equity Income, Equity Growth, Intermediate
Term Bond, Long Term Bond, Government Securities, Money Market, and Diversified
Portfolios of the Fund is MONY America, a wholly-owned subsidiary of MONY. MONY
America has entered into a Services Agreement with MONY for the provision of
personnel, equipment, facilities and other services in order to carry out its
duties as investment adviser to the Fund. For more detailed information, see
INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES at page 19.
INVESTMENT MANAGEMENT FEES AND EXPENSES
MONY America's fee for its investment management services to the Equity
Income, Equity Growth, Intermediate Term Bond, Long Term Bond, Government
Securities, Money Market, and Diversified Portfolios of the Fund is a daily
charge equal to an annual rate of .40 percent of the first $400 million of the
aggregate average daily net assets of those Portfolios, .35 percent of the next
$400 million of the aggregate average daily net assets of those Portfolios, and
.30 percent of the aggregate average daily net assets of those Portfolios in
excess of $800 million. MONY America has agreed to bear all expenses associated
with organizing the Fund, the initial registration of its securities, the
calculation of the net asset value of the Portfolios, and the compensation of
the Fund's directors, officers and employees who are interested persons of
2
<PAGE> 9
MONY America. All other expenses will be borne by the Fund, subject to certain
limitations imposed by state law. For more detailed information, see INVESTMENT
MANAGEMENT ARRANGEMENTS AND EXPENSES at page 19.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
Day to day management of all the Portfolios of the Fund are undertaken by a
committee of MONY America, investment adviser to the Fund.
PURCHASE AND REDEMPTION OF SHARES
Shares in each of the Portfolios are offered continuously to MONY and MONY
America for allocation to the Variable Accounts at prices equal to their
respective net asset values per share, without the imposition of an additional
sales charge at the Fund level. The shares' redemption prices are also equal to
their respective net asset values per share as next determined after the receipt
of proper notice of redemption. For more detailed information, see DETERMINATION
OF NET ASSET VALUE at page 21.
FINANCIAL HIGHLIGHTS
Set forth on the following pages are highlights of the operations of each
Portfolio of the Fund. Additional financial information is contained in the
Statement of Additional Information of the Fund and in the Annual Report of the
Fund, both of which are available, free of charge, by contacting the Fund at the
address or at the telephone number set forth on the cover of this Prospectus.
The Annual Report also contains a discussion of the performance of the Fund
during 1996 as well as line graphs which depict the value at inception and for
each year subsequent to inception of a $10,000 investment made in each Portfolio
of the Fund. These graphs also depict the performance of an investment over the
same period in securities which comprise a broad based, unmanaged securities
market index.
3
<PAGE> 10
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ----------- ----------- -----------
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Net asset value, beginning of year......... $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25 $ 15.38
---------- ---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income.................... 0.18 0.39 0.36 0.33 0.29 0.25
Net gains (losses) on investments (both
realized and unrealized)............... 5.08 5.90 0.09 1.59 (0.46) 5.08
---------- ---------- ---------- ----------- ----------- -----------
Total from investment operations......... 5.26 6.29 0.45 1.92 (0.17) 5.33
Less distributions
Dividends (from net investment income)... 0.00 (0.39) (0.36) (0.33) (0.29) (0.25)
Distributions (from realized capital
gains)................................. 0.00 (1.34) (0.20) (0.57) (0.04) (0.17)
Distributions (from additional paid-in
capital)............................... 0.00 0.00 0.00 0.00 (0.03) (0.04)
Distributions (in excess of realized
capital gain).......................... 0.00 (0.04) 0.00 0.00 (0.04) 0.00
---------- ---------- ---------- ----------- ----------- -----------
Total distributions...................... 0.00 (1.77) (0.56) (0.90) (0.40) (0.46)
Net asset value, end of year............... $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25
========= ========= ========= ========== ========== ==========
Total return............................. 20.95% 30.54% 2.15% 9.71% (0.84%) 34.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year.................... $2,154,669 $1,873,569 $1,556,536 $58,963,456 $39,979,012 $26,219,999
Average commission rate.................... $ 0.0330 N/A N/A N/A N/A N/A
Ratio of net investment income to average
net assets............................... 0.62% 1.54% 2.11% 1.79% 1.72% 2.09%
Ratio of expenses to average net assets.... 1.22% 1.28% 0.53% 0.50% 0.53% 0.59%
Portfolio turnover rate.................... 44.17% 38.17% 55.09% 59.15% 39.93% 32.33%
<CAPTION>
1990 1989 1988 1987
---------- ---------- ---------- ----------
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Net asset value, beginning of year......... $ 15.90 $ 12.78 $ 11.81 $ 12.07
---------- ---------- ---------- ----------
Income from investment operations
Net investment income.................... 0.27 0.28 0.22 0.15
Net gains (losses) on investments (both
realized and unrealized)............... (0.50) 3.66 1.20 0.93
---------- ---------- ---------- ----------
Total from investment operations......... (0.23) 3.94 1.42 1.08
Less distributions
Dividends (from net investment income)... (0.29) (0.27) (0.21) (0.42)
Distributions (from realized capital
gains)................................. 0.00 (0.55) (0.24) (0.92)
Distributions (from additional paid-in
capital)............................... 0.00 0.00 0.00 0.00
Distributions (in excess of realized
capital gain).......................... 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
Total distributions...................... (0.29) (0.82) (0.45) (1.34)
Net asset value, end of year............... $ 15.38 $ 15.90 $ 12.78 $ 11.81
========= ========= ========= =========
Total return............................. (1.45%) 30.83% 12.02% 8.95%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year.................... $7,163,679 $5,672,894 $3,957,234 $2,934,478
Average commission rate.................... N/A N/A N/A N/A
Ratio of net investment income to average
net assets............................... 2.42% 2.00% 1.70% 1.04%
Ratio of expenses to average net assets.... 0.77% 0.96% 1.04% 1.50%
Portfolio turnover rate.................... 31.21% 29.91% 9.51% 18.13%
</TABLE>
4
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MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64 $ 12.70
----------- ----------- ----------- ------------ ------------ ------------
Income from investment
operations
Net investment income.... 0.64 0.69 0.64 0.52 0.59 0.64
Net gains (losses) on
investments (both
realized and
unrealized)............ 3.23 4.45 (0.51) 1.68 0.92 1.94
----------- ----------- ----------- ------------ ------------ ------------
Total from
investment
operations....... 3.87 5.14 0.13 2.20 1.51 2.58
Less distributions
Dividends (from net
investment income)..... (0.04) (0.65) (0.64) (0.52) (0.59) (0.64)
Distributions (from
realized capital
gains)................. 0.00 (0.41) (0.39) (0.81) 0.00* 0.00*
----------- ----------- ----------- ------------ ------------ ------------
Total
distributions.... (0.04) (1.06) (1.03) (1.33) (0.59) (0.64)
Net asset value, end of
year..................... $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64
=========== =========== =========== ============ ============ ============
Total return....... 19.76% 33.12% 0.78% 14.14% 10.31% 20.31%
Ratios/Supplemental Data
Net assets, end of year.... $18,572,347 $18,091,035 $16,204,925 $151,330,311 $121,540,392 $118,114,947
Average commission rate.... $ 0.0593 N/A N/A N/A N/A N/A
Ratio of net investment
income to average net
assets................... 2.79% 3.54% 3.53% 3.22% 3.68% 4.46%
Ratio of expenses to
average net assets....... 0.55% 0.56% 0.48% 0.46% 0.46% 0.49%
Portfolio turnover rate.... 29.37% 26.80% 32.48% 28.48% 35.62% 25.84%
<CAPTION>
1990 1989 1988 1987
----------- ---------- ---------- ----------
<S> <<C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 14.26 $ 12.67 $ 12.03 $ 13.03
----------- ---------- ---------- ----------
Income from investment
operations
Net investment income.... 0.54 0.64 0.70 0.44
Net gains (losses) on
investments (both
realized and
unrealized)............ (1.50) 2.20 1.64 0.54
----------- ---------- ---------- ----------
Total from
investment
operations....... (0.96) 2.84 2.34 0.98
Less distributions
Dividends (from net
investment income)..... (0.60) (0.64) (0.66) (0.77)
Distributions (from
realized capital
gains)................. 0.00 (0.61) (1.04) (1.21)
----------- ---------- ---------- ----------
Total
distributions.... (0.60) (1.25) (1.70) (1.98)
Net asset value, end of
year..................... $ 12.70 $ 14.26 $ 12.67 $ 12.03
=========== ========== ========== ==========
Total return....... (6.73)% 22.42% 19.45% 7.52%
Ratios/Supplemental Data
Net assets, end of year.... $99,878,151 $6,185,876 $5,054,514 $2,945,497
Average commission rate.... N/A N/A N/A N/A
Ratio of net investment
income to average net
assets................... 5.39% 4.66% 5.24% 3.02%
Ratio of expenses to
average net assets....... 0.52% 0.88% 0.91% 1.50%
Portfolio turnover rate.... 8.89% 19.55% 22.70% 13.73%
</TABLE>
- ---------------
* Less than $.01 per share.
5
<PAGE> 12
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 10.57 $9.75....... $ 10.51 $ 10.33 $ 10.22 $ 9.69 $ 9.85
----------- ----------- ----------- ----------- ----------- ----------- -----------
Income from investment
operations
Net investment income.... 0.62 0.63 0.60 0.47 0.59 0.77 0.84
Net gains (losses) on
investments (both
realized and
unrealized)............ (0.23) 0.82 (0.76) 0.34 0.11 0.71 (0.16)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total from
investment
operations....... 0.39 1.45 (0.16) 0.81 0.70 1.48 0.68
Less distributions
Dividends (from net
investment income)..... 0.00 (0.63) (0.60) (0.47) (0.59) (0.77) (0.84)
Distributions (from
realized capital
gains)................. 0.00 0.00 0.00 (0.16) 0.00* 0.00 0.00
Distributions (from
additional paid-in
capital)............... 0.00 0.00 0.00 0.00 0.00 (0.18) 0.00
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total
distributions.... 0.00 (0.63) (0.60) (0.63) (0.59) (0.95) (0.84)
Net asset value, end of
year..................... $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69
=========== =========== =========== =========== =========== =========== ===========
Total return....... 3.69% 14.82% (1.52)% 7.84% 6.85% 15.27% 6.90%
Ratios/Supplemental Data
Net assets, end of year.... $40,045,253 $37,519,833 $32,283,693 $31,326,168 $20,911,161 $22,005,519 $20,260,361
Ratio of net investment
income to average net
assets................... 5.88% 6.10%... 5.66% 5.26% 6.24% 7.88% 8.52%
Ratio of expenses to
average net assets....... 0.48% 0.49%... 0.52% 0.52% 0.53% 0.51% 0.54%
Portfolio turnover rate.... 33.59% 32.07%... 25.41% 50.61% 62.27% 55.03% 20.06%
<CAPTION>
1989 1988 1987
----------- ----------- -----------
<S> <<C> <C> <C>
Net asset value, beginning
of year.................. $ 9.63 $ 9.93 $ 12.15
----------- ----------- -----------
Income from investment
operations
Net investment income.... 0.90 0.86 0.89
Net gains (losses) on
investments (both
realized and
unrealized)............ 0.22 (0.29) (0.88)
----------- ----------- -----------
Total from
investment
operations....... 1.12 0.57 0.01
Less distributions
Dividends (from net
investment income)..... (0.90) (0.87) (1.59)
Distributions (from
realized capital
gains)................. 0.00 0.00 (0.64)
Distributions (from
additional paid-in
capital)............... 0.00 0.00 0.00
----------- ----------- -----------
Total
distributions.... (0.90) (0.87) (2.23)
Net asset value, end of
year..................... $ 9.85 $ 9.63 $ 9.93
=========== =========== ===========
Total return....... 11.63% 5.74% 0.08%
Ratios/Supplemental Data
Net assets, end of year.... $20,419,237 $23,192,883 $25,217,761
Ratio of net investment
income to average net
assets................... 8.67% 8.43% 8.18%
Ratio of expenses to
average net assets....... 0.60% 0.55% 0.60%
Portfolio turnover rate.... 30.99% 24.77% 32.23%
</TABLE>
- ---------------
* Less than $.01 per share.
6
<PAGE> 13
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47 $ 10.70
----------- ----------- ----------- ----------- ----------- ----------- -----------
Income from investment
operations
Net investment income.... 0.79 0.74 0.84 0.50 0.81 0.72 0.90
Net gains (losses) on
investments (both
realized and
unrealized)............ (0.83) 2.41 (1.58) 1.09 0.16 1.12 (0.23)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total from
investment
operations....... (0.04) 3.15 (0.74) 1.59 0.97 1.84 0.67
Less distributions
Dividends (from net
investment income)..... 0.00 (0.74) (0.84) (0.50) (0.74) (0.72) (0.90)
Distributions (from
realized capital
gains)................. 0.00 0.00 0.00 (0.23) 0.00* (0.37) 0.00
Distributions (from
additional paid-in
capital)............... 0.00 0.00 0.00 0.00 (0.07) (0.19) 0.00
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total
distributions.... 0.00 (0.74) (0.84) (0.73) (0.81) (1.28) (0.90)
Net asset value, end of
year..................... $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47
=========== =========== =========== =========== =========== =========== ===========
Total return....... (.31%) 30.04% (6.14)% 14.21% 8.79% 17.57% 6.26%
Ratios/Supplemental Data
Net assets, end of year.... $62,098,817 $62,017,889 $44,012,329 $63,044,619 $29,564,159 $23,207,734 $20,532,817
Ratio of net investment
income to average net
assets................... 6.40% 6.58% 6.45% 5.69% 7.71% 8.12% 8.72%
Ratio of expenses to
average net assets....... 0.46% 0.48% 0.49% 0.48% 0.51% 0.51% 0.53%
Portfolio turnover rate.... 59.78% 79.45% 110.19% 45.93% 0.17% 63.68% 27.49%
<CAPTION>
1989 1988 1987
----------- ----------- -----------
<S> <<C> <C> <C>
Net asset value, beginning
of year.................. $ 9.97 $ 10.28 $ 12.87
----------- ----------- -----------
Income from investment
operations
Net investment income.... 0.96 0.96 0.92
Net gains (losses) on
investments (both
realized and
unrealized)............ 0.73 (0.10) (1.11)
----------- ----------- -----------
Total from
investment
operations....... 1.69 0.86 (0.19)
Less distributions
Dividends (from net
investment income)..... (0.96) (1.17) (1.58)
Distributions (from
realized capital
gains)................. 0.00 0.00 (0.82)
Distributions (from
additional paid-in
capital)............... 0.00 0.00 0.00
----------- ----------- -----------
Total
distributions.... (0.96) (1.17) (2.40)
Net asset value, end of
year..................... $ 10.70 $ 9.97 $ 10.28
=========== =========== ===========
Total return....... 16.95% 8.37% (1.48)%
Ratios/Supplemental Data
Net assets, end of year.... $20,770,552 $23,840,760 $26,798,016
Ratio of net investment
income to average net
assets................... 8.54% 9.04% 8.44%
Ratio of expenses to
average net assets....... 0.64% 0.54% 0.60%
Portfolio turnover rate.... 36.00% 42.79% 128.24%
</TABLE>
- ---------------
* Less than $.01 per share.
7
<PAGE> 14
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990
----------- ---------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................... $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13 $ 11.75 $ 12.27
----------- ---------- ---------- ----------- ----------- ----------- -----------
Income from investment
operations
Net investment income...... 0.36 0.43 0.38 0.37 0.42 0.53 0.70
Net gains (losses) on
investments (both
realized and
unrealized).............. 1.91 3.03 (0.24) 1.01 (0.29) 1.86 (0.40)
----------- ---------- ---------- ----------- ----------- ----------- -----------
Total from investment
operations......... 2.27 3.46 0.14 1.38 0.13 2.39 0.30
Less distributions
Dividends (from net
investment income)....... 0.00 (0.43) (0.38) (0.37) (0.42) (0.53) (0.71)
Distributions (from
realized capital
gains)................... 0.00 (0.43) (0.09) (0.18) (0.20) (0.48) (0.11)
Distributions (in excess of
realized capital gain)... 0.00 (0.02) 0.00 0.00* 0.00* 0.00 0.00
----------- ---------- ---------- ----------- ----------- ----------- -----------
Total
distributions...... 0.00 (0.88) (0.47) (0.55) (0.62) (1.01) (0.82)
Net asset value, end of
year....................... $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13 $ 11.75
=========== ========== ========== =========== =========== =========== ===========
Total return......... 14.44% 26.32% 1.03% 10.92% 0.99% 20.34% 2.44%
Ratios/Supplemental Data
Net assets, end of year...... $ 3,380,587 $3,272,075 $2,860,700 $34,076,498 $22,704,133 $16,829,653 $10,373,263
Average commission rate...... $ 0.0412 N/A N/A N/A N/A N/A N/A
Ratio of net investment
income to average net
assets..................... 2.02% 2.68% 3.19% 3.13% 3.68% 4.72% 6.04%
Ratio of expenses to average
net assets................. 0.91% 0.95% 0.57% 0.53% 0.57% 0.60% 0.63%
Portfolio turnover rate...... 24.43% 27.69% 51.38% 28.98% 26.44% 22.03% 11.49%
<CAPTION>
1989 1988 1987
----------- ----------- -----------
<S> <<C> <C> <C>
Net asset value, beginning
of year.................... $ 11.26 $ 11.00 $ 12.18
----------- ----------- -----------
Income from investment
operations
Net investment income...... 0.75 0.71 0.69
Net gains (losses) on
investments (both
realized and
unrealized).............. 1.74 0.36 (0.21)
----------- ----------- -----------
Total from investment
operations......... 2.49 1.07 0.48
Less distributions
Dividends (from net
investment income)....... (0.75) (0.70) (1.33)
Distributions (from
realized capital
gains)................... (0.73) (0.11) (0.33)
Distributions (in excess of
realized capital gain)... 0.00 0.00 0.00
----------- ----------- -----------
Total
distributions...... (1.48) (0.81) (1.66)
Net asset value, end of
year....................... $ 12.27 $ 11.26 $ 11.00
=========== =========== ===========
Total return......... 22.11% 9.73% 3.94%
Ratios/Supplemental Data
Net assets, end of year...... $12,319,454 $16,050,117 $13,039,577
Average commission rate...... N/A N/A N/A
Ratio of net investment
income to average net
assets..................... 5.86% 6.10% 5.35%
Ratio of expenses to average
net assets................. 0.67% 0.62% 0.75%
Portfolio turnover rate...... 8.06% 4.46% 12.31%
</TABLE>
- ---------------
* Less than $.01 per share.
8
<PAGE> 15
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990
------------ ------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ------------ ----------- ----------- ----------- ----------- -----------
Income from investment
operations
Net investment income.... 0.05 0.05 0.04 0.03 0.03 0.06 0.07
Less distributions
Dividends (from net
investment income)..... (0.05) (0.05) (0.04) (0.03) (0.03) (0.06) (0.07)
---------- ------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of
year..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ============ =========== =========== =========== =========== ===========
Total return....... 5.00% 5.50% 3.82% 2.75% 3.31% 5.60% 7.22%
Ratios/Supplemental Data
Net assets, end of year.... $144,932,159 $110,366,978 $83,352,731 $65,474,860 $50,892,593 $34,642,974 $26,924,389
Ratio of net investment
income to average net
assets................... 4.95% 5.30% 3.77% 2.62% 3.17% 5.80% 7.63%
Ratio of expenses to
average net assets....... 0.45% 0.46% 0.49% 0.46% 0.48% 0.54% 0.54%
<CAPTION>
1989 1988 1987
----------- ---------- ----------
<S> <<C> <C> <C>
Net asset value, beginning
of year.................. $ 1.00 $ 1.00 $ 1.00
----------- ---------- ----------
Income from investment
operations
Net investment income.... 0.08 0.07 0.05
Less distributions
Dividends (from net
investment income)..... (0.08) (0.07) (0.05)
----------- ---------- ----------
Net asset value, end of
year..................... $ 1.00 $ 1.00 $ 1.00
=========== ========== ==========
Total return....... 8.20% 6.56% 5.34%
Ratios/Supplemental Data
Net assets, end of year.... $10,817,623 $4,552,241 $2,883,644
Ratio of net investment
income to average net
assets................... 8.06% 6.77% 5.36%
Ratio of expenses to
average net assets....... 0.92% 1.08% 1.50%
</TABLE>
9
<PAGE> 16
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
1996 1995 1994 1993
----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............................. $ 10.21 $ 9.51 $ 9.72 $ 9.66
---------- ---------- ---------- -----------
Income from investment operations
Net investment income........................................... 0.45 0.34 0.05 0.52
Net gains (losses) on investments (both realized and
unrealized)................................................... (0.08) 0.70 (0.21) 0.27
---------- ---------- ---------- -----------
Total from investment operations.......................... 0.37 1.04 (0.16) 0.79
Less distributions
Dividends (from net investment income).......................... 0.00 (0.34) (0.05) (0.52)
Distributions (from realized capital gains)..................... 0.00 (0.00)* 0.00 (0.21)
Distributions (in excess of realized capital gains)............. 0.00 (0.00) 0.00 0.00*
---------- ---------- ---------- -----------
Total distributions....................................... 0.00 (0.34) (0.05) (0.73)
Net asset value, end of period.................................... $ 10.58 $ 10.21 $ 9.51 $ 9.72
========== ========== ========== ===========
Total return.............................................. 3.62% 10.89% (2.68%)+++ 8.18%
Ratios/Supplemental Data
Net assets, end of period......................................... $16,383,300 $8,555,893 $1,204,231 $20,036,097
Ratio of net investment income to average net assets.............. 5.59% 6.10% 5.43%+++ 5.06%
Ratio of expenses to average net assets........................... 0.55% 0.74% 0.57%+++ 0.53%
Portfolio turnover rate........................................... 12.52% 0.28% 7.82% 41.01%
<CAPTION>
FOR THE
PERIOD
MAY 1,
1991**
THROUGH
DEC. 31,
1992 1991
----------- -----------
<S> <C> <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% 0.43%+
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.
10
<PAGE> 17
STRUCTURE OF THE FUND
The Fund, a Maryland corporation organized on December 14, 1984, currently
is composed of seven different Portfolios that are, in effect, separate
investment funds: the Equity Income Portfolio, the Equity Growth Portfolio, the
Intermediate Term Bond Portfolio, the Long Term Bond Portfolio, the Government
Securities Portfolio, the Money Market Portfolio, and the Diversified Portfolio.
Until November 18, 1994, the Government Securities Portfolio had been known as
the Intermediate Government Bond Portfolio. The Fund issues a separate class of
capital stock for each Portfolio. Each share of capital stock issued with
respect to a Portfolio will have a pro-rata interest in the assets of that
Portfolio and will have no interest in the assets of any other Portfolio. Each
Portfolio bears its own liabilities and also its proportionate share of the
general liabilities of the Fund. The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, diversified, management
investment company. This registration does not imply any supervision by the
Securities and Exchange Commission over the Fund's management or its investment
policies or practices.
Shares of the Fund allocated to Keynote were presented for redemption in
kind on June 24, 1994. This redemption is as a result of the sale by MONY of its
group pension operation to AEGON USA, Inc. ("AEGON") and the transfer of group
annuity contracts, the purchase payments for which are allocated to Keynote, to
a wholly-owned life insurance subsidiary of AEGON. As a part of the agreement of
sale, shares of another series mutual fund were substituted for shares of the
Fund allocated to Keynote.
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS
Each Portfolio of the Fund has a different investment objective which it
pursues through separate investment policies as described below. Since each
Portfolio has a different investment objective, each can be expected to have
different investment results and incur different market and financial risks. The
Fund may in the future establish other Portfolios with different investment
objectives.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which for this purpose and under the 1940 Act
means the lesser of (i) 67 percent of the Portfolio shares represented at a
meeting at which more than 50 percent of the outstanding Portfolio shares are
represented or (ii) more than 50 percent of the outstanding Portfolio shares).
The policies by which a Portfolio seeks to achieve its investment objectives,
however, are not fundamental. They may be changed by the Board of Directors of
the Fund without shareholder approval.
Each Portfolio has a different portfolio turnover rate which is the
percentage computed by dividing the lesser of portfolio purchases or sales by
the average value of the Portfolio, in each case excluding securities with
maturities at the time of acquisition of one year or less. Brokerage expenses
can be expected to be higher as a result of higher turnover rates. The rate of
portfolio turnover is not a limiting factor when it is deemed appropriate to
purchase or sell securities of a Portfolio.
There is no guarantee that any of the objectives of any Portfolio will be
met. The following paragraphs describe the investment objectives, policies and
portfolio turnover rates of each Portfolio.
EQUITY INCOME PORTFOLIO
The primary objective of the Equity Income Portfolio is a high level of
current income with capital appreciation as the secondary objective.
The Equity Income Portfolio will seek to achieve this objective by
following the policy of investing primarily in a diversified portfolio of common
stocks. The stocks will have relatively high current yields, and their prices
should be less volatile than those held in the Equity Growth Portfolio.
Investments in the Equity Income Portfolio may also include securities
convertible into common stock, preferred stock, debt securities and short-term
obligations. The Equity Income Portfolio seeks to achieve this objective by
following the policy of investing primarily in common stocks listed on the New
York Stock Exchange and on other national securities exchanges and, to a lesser
extent, in stocks that are traded over-the-counter. These stocks will be
11
<PAGE> 18
selected principally because of their dividend yield. During periods when stock
prices decline generally, the prices of stocks held in the Equity Income
Portfolio may also decline.
A portion of the Equity Income Portfolio may be invested in short-term debt
obligations of the kind held in the Money Market Portfolio, as described in
Appendix A, in order to make effective use of cash reserves pending investment
in common stocks and other securities.
The annual portfolio turnover rate for the Equity Income Portfolio is not
likely to exceed 100 percent.
EQUITY GROWTH PORTFOLIO
The primary objective of the Equity Growth Portfolio is a high level of
capital appreciation with current income as the secondary objective.
The Equity Growth Portfolio will seek to achieve this objective by
following the policy of investing primarily in a diversified portfolio of common
stocks. The stocks will be selected based on their potential for above average
growth in earnings and dividends. Investments in the Equity Growth Portfolio may
also include securities convertible into common stock, preferred stock, debt
securities and short-term obligations. The Equity Growth Portfolio seeks to
achieve this objective by following the policy of investing primarily in common
stocks listed on the New York Stock Exchange and on other national securities
exchanges and, to a lesser extent, in stocks that are traded over-the-counter.
These stocks will be selected principally for their potential appreciation over
the longer term. The effort to achieve a higher return necessarily involves
accepting somewhat greater risk. During periods when stock prices decline
generally, it can be expected that the value of the Equity Growth Portfolio will
also decline.
A portion of the Equity Growth Portfolio may be invested in high-quality,
short-term debt obligations of the kind held in the Money Market Portfolio, as
described in Appendix A, in order to make effective use of cash reserves pending
investment in common stocks and other securities.
The annual portfolio turnover rate for the Equity Growth Portfolio is not
likely to exceed 100 percent.
INTERMEDIATE TERM BOND PORTFOLIO
The objective of the Intermediate Term Bond Portfolio is to maximize income
over the intermediate term consistent with preservation of capital.
The Intermediate Term Bond Portfolio seeks to achieve this objective by
following the policy of investing in (i) debt securities which, at the time of
purchase, have a rating within the four highest grades as determined by either
Moody's Investors Service, Inc. or Standard & Poor's Corporation as described in
Appendix B; (ii) obligations of the U.S. Government, its agencies or
instrumentalities; and (iii) high-quality, short-term obligations as described
in Appendix A. The Intermediate Term Bond Portfolio will be managed so as to
maintain a dollar-weighted average life of between 4 and 8 years.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Intermediate Term Bond
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Intermediate Term Bond
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates, and there is a corresponding risk that the value of
the securities held in the Portfolio will decline. Because of their relatively
shorter maturities, the value of the bonds in this Portfolio will be less
sensitive to changes in interest rates than the longer-term bonds held in the
Long Term Bond Portfolio and similar to the bonds held in the Government
Securities Portfolio. Thus, compared to the Long Term Bond Portfolio, there will
be less of a risk that the value of the securities held in the Intermediate Term
Bond Portfolio will decline, but not as much of a likelihood for greater
appreciation in value. Compared to the Government Securities Portfolio, there
will be a similar risk that the value of the securities held in the Intermediate
Term Bond Portfolio will decline and a similar likelihood for appreciation in
value.
12
<PAGE> 19
The annual portfolio turnover rate of the Intermediate Term Bond Portfolio
is not likely to exceed 100 percent.
LONG TERM BOND PORTFOLIO
The objective of the Long Term Bond Portfolio is to maximize income over
the longer term consistent with preservation of capital.
The Long Term Bond Portfolio seeks to achieve this objective by following
the policy of investing in (i) debt securities which, at the time of purchase,
have a rating within the four highest grades as determined by either Moody's
Investors Service, Inc. or Standard & Poor's Corporation as described in
Appendix B; (ii) obligations of the U.S. Government, its agencies or
instrumentalities; and (iii) high-quality, short-term obligations as described
in Appendix A. The Long Term Bond Portfolio will be managed so as to maintain a
dollar-weighted average life of in excess of 8 years.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Long Term Bond Portfolio
will vary to reflect the Investment Adviser's assessment of prospective changes
in interest rates, so that the Long Term Bond Portfolio may benefit from
relative price appreciation when interest rates decline and may protect capital
value when interest rates rise. The success of this strategy will depend on the
Investment Adviser's ability to forecast changes in interest rates, and there is
a corresponding risk that the value of the securities held in the Long Term Bond
Portfolio will decline. Because of their relatively longer maturities, the value
of the bonds in this Portfolio will be more sensitive to changes in interest
rates than the relatively shorter-term bonds held in the Intermediate Term Bond
Portfolio and the Government Securities Portfolio. Thus, compared to the
Intermediate Term Bond Portfolio and the Government Securities Portfolio, there
will be more of a risk that the value of securities held in the Long Term Bond
Portfolio will decline, but more of a likelihood for greater appreciation in
value.
The annual portfolio turnover rate of the Long Term Bond Portfolio is not
likely to exceed 100 percent.
GOVERNMENT SECURITIES PORTFOLIO
The primary objective of the Government Securities Portfolio is to maximize
income over the intermediate term consistent with preservation of capital.
The Government Securities Portfolio will seek to achieve this objective by
following a policy of investing in highly-rated debt securities of the United
States government and its agencies; and money market instruments. The Government
Securities Portfolio will be managed so as to maintain a dollar-weighted average
life of up to ten years at time of purchase.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Government Securities
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Government Securities
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates, and there is a corresponding risk that the value of
the securities held in the Government Securities Portfolio will decline. Because
of their relatively shorter maturities, the value of the bonds in this Portfolio
will be less sensitive to changes in interest rates than the relatively
longer-term bonds held in the Long Term Bond Portfolio. Because of the
relatively similar maturities, the value of the bonds in this Portfolio will be
similar to changes in interest rates in the Intermediate Term Bond Portfolio.
Thus, compared to the Long Term Bond Portfolio, there will be less of a risk
that the value of securities held in the Government Securities Portfolio will
decline, but not as much of a likelihood for greater appreciation in value.
Compared to the Intermediate Term Bond Portfolio, there will be a similar risk
that the value of securities held in the Government Securities Portfolio will
decline and a similar likelihood for appreciation in value.
The annual portfolio turnover rate of the Government Securities Portfolio
is not likely to exceed 100 percent. For 1991, the portfolio turnover rate
exceeded 100 percent. The Government Securities Portfolio commenced operation on
May 1, 1991. On June 24, 1994, the Keynote Series Account requested redemption
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<PAGE> 20
of all shares of this Portfolio. Effective on and after November 18, 1994,
shares of the Portfolio will be offered to MONY America and MONY for allocation
to MONY America Variable Account A and MONY Variable Account A to fund Flexible
Payment Variable Annuity Contracts issued by those companies and to MONY America
and MONY for allocation to MONY America Variable Account L and to MONY Variable
Account L to fund Flexible Premium Variable Life Insurance Policies issued by
those companies. As this Portfolio is, in effect, a start-up fund, a larger than
normal number of transactions can be expected as the fund matures, and,
therefore, the additional transaction expenses associated with high portfolio
turnover rates may adversely impact purchasers of this Portfolio's shares.
MONEY MARKET PORTFOLIO
The objective of the Money Market Portfolio is to maximize current income
consistent with the preservation of capital and maintenance of liquidity.
The Money Market Portfolio seeks to achieve this objective by following the
policy of investing primarily in money market instruments denominated in U.S.
dollars that mature in 397 days or less from the date the Money Market Portfolio
acquires them. Money market instruments include short-term obligations of the
U.S. Government, its agencies or instrumentalities, of domestic and foreign (if
U.S. Dollar denominated) corporations and of banks. They also include commercial
paper and other corporate obligations of both domestic and foreign (if U.S.
Dollar denominated) corporations. The Money Market Portfolio may also enter into
repurchase and reverse repurchase agreements. A detailed description of the
money market instruments in which the Money Market Portfolio may invest, of the
repurchase and reverse repurchase agreements it may enter into, and of the risks
associated with those instruments and agreements may be found in Appendix A. The
dollar-weighted average life to maturity of the securities held by the Money
Market Portfolio is expected to be less than 90 days.
Because of the high-quality, short-term nature of the Money Market
Portfolio's holdings, increases in the value of an investment in the Portfolio
will be derived almost entirely from interest on the securities held by it.
The Money Market Portfolio will attempt, consistent with preservation of
capital, to achieve the highest possible yield from its investments. Yield with
respect to the Money Market Portfolio normally will fluctuate, sometimes
substantially, on a daily basis and is affected by changes in interest rates on
money market instruments, average portfolio maturities, the type and quality of
portfolio securities held, and the expenses of the Money Market Portfolio.
Therefore, the yield for any given past period should not be considered as
representative of the yield for any future period.
Because of the short term nature of the securities in which the Money
Market Portfolio will invest, and because the Portfolio's investments will be
constantly changing in response to market conditions, an annual portfolio
turnover rate for the Money Market Portfolio would not be meaningful and will
not be determined. The Rules of the Securities and Exchange Commission reflect
that such calculations would not be meaningful and, therefore, do not require
calculation of turnover rates for securities with a maturity of one year or
less.
DIVERSIFIED PORTFOLIO
The objective of the Diversified Portfolio is a high total investment
return consistent with a diversified portfolio having a managed mix of common
stocks, bonds and money market instruments. The Investment Adviser will
determine the proportions of each type of investment to achieve an asset mix it
believes appropriate for an investor who desires diversification of investment.
The Investment Adviser will vary the proportion of each type of asset in the
Diversified Portfolio according to changes in economic conditions and the
sensitivity of each type of investment to those changes.
The Diversified Portfolio will seek to achieve this objective by investing
in stocks and other equity securities of the kind purchased by the Equity Income
Portfolio and Equity Growth Portfolio, bonds and other fixed-income securities
of the kind purchased by the Intermediate Term Bond Portfolio, the Long Term
Bond Portfolio and the Government Securities Portfolio, and money market
instruments of the kind purchased by the Money Market Portfolio. These
investments will be made in proportions that the Investment Adviser feels
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<PAGE> 21
appropriate. These asset allocation decisions will be reviewed by the Investment
Adviser as necessary, given market conditions. The decision about how much to
allocate to each particular type of asset will be based on the Investment
Adviser's outlook for the economy, the financial markets and its judgment about
the relative attractiveness of each asset type.
The overall annual portfolio turnover rate for the Diversified Portfolio is
not likely to exceed 100 percent. Neither the equity portion nor the bond
portion of the Diversified Portfolio is likely to have an annual turnover rate
exceeding 100 percent. No annual portfolio turnover rate may be accurately
predicted for the portion of the Portfolio invested in money market instruments
because of the short-term nature of these securities and because the Diversified
Portfolio's proportion of investment in money market instruments will be
constantly changing in response to market conditions.
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS
The Fund has adopted restrictions relating to the investment of assets of
the Portfolios and their activities. The investment restrictions are fundamental
policies and may not be changed without the approval of a majority vote of the
outstanding shares (as defined above at page 11) of each of the Portfolios
affected. (See VOTING RIGHTS at page 23.) These investment restrictions, which
apply to the Fund's seven current Portfolios, may be different for any new
portfolios that the Fund may create in the future.
Some of the Fund's investment restrictions have the effect of limiting
certain practices, while, however, allowing a portion of a Portfolio's net
assets to be at risk. These investment restrictions are:
1. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
2. Loans, both short and long term, may be made by a Portfolio only
through the purchase or acquisition of privately placed bonds, debentures,
notes or other evidences of indebtedness that may or may not be convertible
into stock of a type customarily acquired by institutional investors,
provided, however, that no such purchase or acquisition will be made if, as
a result thereof, more than 10 percent of the value of the Portfolio's
assets would be so invested. Repurchase agreements are not subject to this
restriction.
3. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
4. In general, the Portfolios will not invest more than 10 percent of
any Portfolio's total assets in illiquid assets, including illiquid
restricted securities, repurchase agreements maturing in more than seven
days, and nonnegotiable time deposits maturing in more than seven days.
More detailed information about these investment restrictions, as well as
other investment restrictions applicable to the Portfolios, is contained in the
Statement of Additional Information (INVESTMENT RESTRICTIONS). In addition, the
Fund intends to comply with the various requirements of the Internal Revenue
Code to qualify as a "regulated investment company" under the Code. For a
description of these requirements see FEDERAL INCOME TAX STATUS on page 17.
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<PAGE> 22
LOANS OF PORTFOLIO SECURITIES
Each Portfolio may from time to time lend the securities it holds to
broker-dealers, provided that the aggregate value of the securities so lent by
any Portfolio does not exceed 10 percent of the value of that Portfolio's assets
and further provided that such loans are made pursuant to written agreements and
are continuously secured by collateral in the form of cash, U.S. Government
securities, or irrevocable standby letters of credit in an amount equal to at
least the market value at all times of the loaned securities plus the accrued
interest and dividends. During the time securities are on loan, the Portfolio
will continue to receive the interest and dividends, or amount equivalent
thereto, on the loaned securities while receiving a fee from the borrower or
earning interest on the investment of the cash collateral. The right to
terminate the loan will be given to either party subject to appropriate notice.
Upon termination of the loan, the borrower will return to the lender securities
identical to the loaned securities. The Portfolio will not have the right to
vote securities on loan, but would terminate the loan and retain the right to
vote if that were considered important with respect to the investment.
The primary risk in lending securities is that the borrower may become
insolvent on a day on which the loaned security is rapidly advancing in price.
In such event, if the borrower fails to return the loaned securities, the
existing collateral might be insufficient to purchase back the full amount of
the security loaned, and the borrower would be unable to furnish additional
collateral. The borrower would be liable for any shortage; but the Portfolio
would be an unsecured creditor with respect to such shortage and might not be
able to recover all or any of it. However, this risk may be minimized by a
careful selection of borrowers and securities to be lent and by monitoring
collateral.
No Portfolio will lend securities to broker-dealers affiliated with the
Fund or MONY. This will not affect the Fund's ability to maximize a Portfolio's
securities lending opportunities.
STATE LAW RESTRICTIONS
The investments of Keynote and the MONY Variable Accounts, and the MONY
America Variable Accounts are subject to the provisions of the New York and
Arizona insurance law, respectively, applicable to the investments of life
insurance company separate accounts. Although these state law investment
restrictions do not apply directly to the Fund, the Portfolios will comply,
without the approval of shareholders, with such statutory requirements, as they
exist or may be amended.
Under pertinent provisions of New York law, as they currently exist, the
assets of Keynote and the MONY Variable Accounts may be invested in any
investments (1) permitted by agreement between these Variable Accounts and their
Contract holders and (2) acquired in good faith and with that degree of care in
acquiring investments that an ordinarily prudent person in a like position would
use under similar circumstances. The only agreement with Contract holders
pertaining to investments permitted for the Variable Accounts is as described in
the prospectuses for the Contracts, namely that the Variable Accounts will
invest only in shares of the Fund. The investment of the assets of the Fund are
subject to the investment objectives, policies and restrictions applicable to
the Portfolios, as described in this Prospectus (see INVESTMENT OBJECTIVES AND
POLICIES OF THE PORTFOLIOS at page 11 and INVESTMENT RESTRICTIONS APPLICABLE TO
THE PORTFOLIOS at page 15) and in the Statement of Additional Information
(INVESTMENT RESTRICTIONS).
The pertinent provisions of Arizona law, as they currently exist, are in
summary form as follows:
The assets of variable accounts established by MONY America may be invested
in any investments that are of the kind permitted and that satisfy the
qualitative requirements, but without regard to quantitative restrictions.
Bonds, debentures, notes, commercial paper and other evidences of indebtedness,
and preferred, guaranteed or preference stocks must have received an investment
grade rating approved by the Director of Insurance. Funds may not be invested in
foreign banks (other than foreign branches of domestic banks) except that
investments may be made in obligations issued, assumed or guaranteed by the
International Bank for Reconstruction and Development. Investments not otherwise
permitted under Arizona law may be made in
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<PAGE> 23
an amount not exceeding in the aggregate 10 percent of assets and not exceeding
2 percent of assets as to any one such investment.
Although compliance with New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states, under
some circumstances the laws of other states could impose additional
restrictions. Accordingly, if any state or other jurisdiction in which the
Variable Accounts propose to do business imposes limits applicable to the
Variable Accounts, in addition to any imposed by New York and Arizona law, the
Fund will comply with such further investment limits.
FEDERAL INCOME TAX STATUS
The Fund and each of its Portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). To qualify for treatment as regulated
investment companies, the Fund and each of its Portfolios must, among other
things, satisfy the following requirements:
1. At least 90 percent of the gross income of each of the Portfolios
must be derived from dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5) of the Code), and gains
from the sale or other disposition of stock or securities (as defined in
section 2(a)(36) of the Investment Company Act of 1940, as amended) or
foreign currencies, or other income (including but not limited to gains
from options, futures, or forward contracts) derived with respect to its
business of investing in such stock, securities or currencies. For purposes
of meeting this requirement, foreign currency gains which are not ancillary
to the Portfolio's principal business of investing in stock or securities
(or options and futures with respect to stock or securities) may be
excluded from qualifying income.
2. Each Portfolio must derive less than 30 percent of its gross income
in each taxable year from the sale or other disposition of stock,
securities held for less than 3 months, options, futures, forward
contracts, or foreign currency gains not related to a Portfolio's principal
business of investing in stock or securities. No portfolio will be
disqualified under this test by reason of sales resulting from abnormal
redemptions on any day occurring before the close of the fifth business day
after such day if the sum of the percentages of assets redeemed, for any
day on which such percentage exceeds 1% for the day in question and any
prior day in the taxable year exceeds 30% and the Fund would meet this test
if all its portfolios were treated as a single company.
3. At the close of each calendar quarter, at least 50 percent of the
value of the total assets of each of the Portfolios must be represented by
cash and cash items (including receivables), Government securities,
securities of other regulated investment companies, and other securities
(limited for each portfolio in respect of any one issuer, to an amount not
greater in value than 5 percent of the value of the total assets of that
Portfolio and to not more than 10 percent of the outstanding voting
securities of the issuer).
4. At the close of each calendar quarter, no more than 25 percent of
the value of the total assets of each of the Portfolios may be invested in
the securities of any one issuer except that this limitation shall not
apply to Government securities or securities of other regulated investment
companies. In addition, at the close of each calendar quarter, no more than
25 percent of the value of the total assets of each of the Portfolios may
be invested in the securities of 2 or more issuers which the Portfolio
controls and which are engaged in the same or similar trades or businesses.
For substantially all federal income tax purposes, each Portfolio of the
Fund is a separate entity. This means that the investment results of each
Portfolio will be calculated separately from those of the other Portfolios for
purposes of determining whether each Portfolio qualifies as a regulated
investment company and for purposes of determining the net ordinary income (or
loss) and net realized capital gains (or losses).
For information regarding the federal income tax implications of the Fund
and its Portfolios qualifying as a regulated investment company, see DIVIDENDS,
DISTRIBUTIONS AND TAXES at pages 24.
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<PAGE> 24
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
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<PAGE> 25
MANAGEMENT OF THE FUND
The Board of Directors of the Fund is responsible for the management of the
business of the Fund under the laws of the State of Maryland, and it is
primarily responsible for reviewing the activities of the investment adviser.
INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES
The Fund has entered into an Investment Advisory Agreement with MONY
America under which MONY America will carry on the overall day-to-day management
of the Equity Income, Equity Growth, Intermediate Term Bond, Long Term Bond,
Government Securities, Money Market, and Diversified Portfolios of the Fund, and
provide investment advice and related services for each of those Portfolios. If
the Fund creates new portfolios in the future, MONY America may be appointed to
act as investment adviser and manager for those portfolios, as well, or the Fund
may appoint a different investment adviser for any new portfolio.
MONY America receives an investment management fee as compensation for its
services to the Equity Income, Equity Growth, Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, and Diversified Portfolios of the
Fund. The fee is a daily charge equal to an annual rate of .40 percent of the
first $400 million of the aggregate average daily net assets of those
Portfolios, .35 percent of the next $400 million of the aggregate average daily
net assets of those Portfolios, and .30 percent of the aggregate average daily
net assets of those Portfolios in excess of $800 million. Each daily charge for
the fee is divided among those Portfolios in proportion to their net assets on
that date. MONY America has agreed to bear all expenses (i) for the Fund's
organization, (ii) related to initial registration and qualification under
federal and state securities laws, (iii) associated with calculating net asset
value of the Portfolios, and (iv) for compensation of the Fund's directors,
officers and employees who are interested persons (as defined by the 1940 Act)
of MONY America. All other expenses will be borne by the Fund, including any
extraordinary or non-recurring expenses. With respect to the expenses of
preparing, printing and mailing prospectuses, see PURCHASE AND REDEMPTION OF
SHARES at page 21. MONY America has agreed to reimburse the Fund for the amount,
if any, by which the aggregate ordinary operating expenses of any Portfolio in
any calendar year exceed the most restrictive expense limitations then in effect
under any state securities law or regulations. Under the most restrictive state
regulations currently in effect, the Adviser would be required to reimburse the
Fund for investment management fees received by the Adviser from the Fund, to
the extent that any Portfolio's aggregate ordinary operating expense (excluding
interest, taxes, brokerage fees and commissions, and extraordinary charges such
as litigation costs) exceed in any fiscal year 2.5 percent of the first
$30,000,000 of average daily net assets of such Portfolio, 2.0 percent of the
next $70,000,000 of average daily net assets of such Portfolio, and 1.5 percent
of the average daily net assets of such Portfolio in excess of $100,000,000. No
fee payments would be made to MONY America with respect to any Portfolio during
any calendar year to the extent that those payments would cause that Portfolio's
expenses to exceed the expense limitations applicable to the Portfolio.
MONY America, a wholly-owned subsidiary of MONY, is registered as an
investment adviser under the Investment Advisers Act of 1940 and, prior to
registration in 1985, had not performed services as an investment adviser. MONY
America has entered into a Services Agreement with MONY to provide it with
personnel, services, facilities, supplies, and equipment in order to carry out
many of its duties to provide investment management services under the
Investment Advisory Agreement. MONY America pays MONY for such services.
Because the Investment Advisory Agreement and the Services Agreement are
interrelated and dependent on each other, MONY may be deemed to be an investment
adviser of the Fund for certain federal regulatory purposes. MONY is registered
as an investment adviser under the Investment Advisers Act of 1940. Its
principal business address, as well as that of the Investment Adviser, is 1740
Broadway, New York, New York 10019.
Although MONY America's lack of previous experience in advising a mutual
fund might be considered a risk factor, it is anticipated that many of MONY
America's duties will be carried out by MONY and its
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<PAGE> 26
personnel under the Services Agreement and therefore MONY's experience as an
investment manager should also be considered. MONY is a mutual life insurance
company organized under the laws of New York in 1842 and licensed to do business
in all fifty states, the District of Columbia, Puerto Rico, the Virgin Islands
and certain Canadian provinces. MONY manages the investment of assets held in
its own general account, various separate accounts established by MONY, and the
assets of its employee thrift plan trust. From 1969 to 1981, MONY provided
investment advisory services to MONY Advisers, Inc. (a wholly-owned subsidiary
of MONY) which acted as investment adviser to The MONY Fund, Inc., a registered
diversified open-end management investment company. As of December 31, 1996,
total assets under management in the accounts managed by MONY were approximately
$20.2 billion and included common stocks with a value of approximately $952
million, long and medium term publicly-traded fixed income securities with a
value of approximately $7.1 billion, and short-term debt obligations with a
value of approximately $415 million. The size of the accounts and portfolios
managed by MONY or its personnel does not assure that a shareholder of the Fund
will realize any gain or be protected from any loss.
The Investment Advisory Agreement was initially approved by the Fund's
Board of Directors, including a majority of the non-interested directors (as
defined by the 1940 Act), on January 2, 1985 and continuance for an additional
year was most recently approved on February 20, 1997. The Services Agreement was
similarly approved on January 2, 1985 and continuance for an additional year was
most recently approved by the Fund's Board of Directors on February 20, 1997.
Both Agreements will continue in effect if approved annually by (1) a majority
of the non-interested directors (as defined by the 1940 Act) of the Fund's Board
of Directors, and (2) a majority of the entire Board of Directors or a majority
vote of the voting shares of each Portfolio. If a majority of the voting shares
of any Portfolio vote to approve both Agreements, they will remain in effect
with respect to that Portfolio, even if they are not approved by a majority of
the voting shares of any other Portfolio or by a majority of the voting shares
of the entire Fund. The Agreements are not assignable. The Investment Advisory
Agreement may be terminated without penalty upon 60 days' notice by the Fund's
Board of Directors or by a majority vote of its shareholders, and upon 90 days'
notice by the Investment Adviser. The Services Agreement may be terminated
without penalty upon 60 days' notice by either party.
MONY America and MONY serve as investment managers or advisers in managing
their own assets and, in the case of MONY, the assets of separate accounts and
certain of its subsidiaries. In the future, MONY America and MONY may serve as
investment manager or adviser to other investment companies. When investment
opportunities arise that may be appropriate for more than one account or entity
for which MONY America or MONY serves as investment manager or adviser,
including for their own accounts, MONY America or MONY and their personnel will
not favor one over another and may allocate investments among them in an
impartial manner believed to be equitable to each entity involved. The
allocations will be based on each entity's investment objectives and its current
cash and investment positions. Because the various entities for which MONY
America or MONY acts or may act as investment manager or adviser, including for
their own accounts, have different investment objectives and positions, MONY
America or MONY may from time to time buy a particular security for one or more
such entities while at the same time it sells such securities for another.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
As investment adviser, MONY America is responsible for the day-to-day
management of each of the Portfolios of the Fund. Investment decisions are made
by a committee of the investment adviser.
CUSTODIAN, TRANSFER AGENT, AND DIVIDEND DISBURSING AGENT
Chase Manhattan Bank, 4 New York Plaza, New York, New York 10004 is the
custodian of the securities held by the Portfolios of the Fund, and is
authorized to use the facilities of the Depository Trust Company and the
facilities of the book-entry system for the Federal Reserve Bank. The Fund acts
as its own transfer agent and dividend-disbursing agent.
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<PAGE> 27
PURCHASE AND REDEMPTION OF SHARES
Shares in the Fund are currently being offered continuously, without sales
charge at the Fund level, at prices equal to the respective net asset values of
the Portfolios to MONY and MONY America for allocation to the Variable Accounts
to fund benefits payable under the Contracts described in the attached
prospectus. The Fund sells its shares through MONY Securities Corp. ("MSC")
(which acts as "principal underwriter" of the Contracts and therefore of the
shares of the Fund) to MONY and MONY America, for allocation to the Variable
Accounts. MSC is registered as a broker-dealer under the Securities Exchange Act
of 1934 and is a member of the National Association of Securities Dealers. It is
expected that there will be no distribution expenses for the Fund, other than
expenses for preparing, printing and mailing prospectuses. These expenses, and
any other distribution expenses, will be borne by MSC pursuant to an
underwriting agreement that will comply with pertinent provisions of the 1940
Act and rules of the Securities and Exchange Commission under that Act. The Fund
may at some later date also offer its shares to other separate accounts of MONY,
MONY America, or other MONY subsidiaries.
The Fund is required to redeem all full and fractional shares of the Fund
for cash within seven days of receipt of proper notice of redemption. The
redemption price is the net asset value per share next determined after the
initial receipt of proper notice of redemption.
The right to redeem shares or to receive payment with respect to any
redemption may be suspended only (i) for any period during which trading on the
New York Stock Exchange is restricted as determined by the Securities and
Exchange Commission or when the New York Stock Exchange is closed (other than
customary weekend and holiday closings), (ii) for any period during which an
emergency exists as defined by the Securities and Exchange Commission as a
result of which disposal of a Portfolio's securities or determination of the net
asset value of each Portfolio is not reasonably practicable, and (iii) for such
other periods as the Securities and Exchange Commission may by order permit for
the protection of shareholders of each Portfolio.
DETERMINATION OF NET ASSET VALUE
The net asset value of the shares of each Portfolio will be determined by
the Investment Adviser once daily immediately after the declaration of
dividends, if any, at a time to be determined by the Fund's Board of Directors,
currently 4:00 p.m. New York City time, on each day during which the New York
Stock Exchange is open for business or on any other day in which there is
sufficient trading in the securities held by a Portfolio to result in a material
change in the value of such shares. The net asset value per share of each
Portfolio except the Money Market Portfolio is computed by adding the sum of the
value of the securities held by that Portfolio plus any cash or other assets it
holds, subtracting all its liabilities, and dividing the result by the total
number of shares outstanding of that Portfolio at such time. Expenses, including
the investment management fee payable to MONY America, are accrued daily.
High-quality, short-term debt obligations held in any of the Portfolios
with a remaining maturity of 60 days or less will be valued on an amortized-cost
basis. This means that each obligation will be valued initially at its purchase
price and thereafter by amortizing any discount or premium uniformly to
maturity, regardless of the impact of fluctuating interest rates on the market
value of the obligation. This highly practical method of valuation is in
widespread use and almost always results in a value that is extremely close to
the actual market value. The Fund's Board of Directors will review obligations
being valued under this method where credit or other factors may indicate the
method is not appropriate or where the rules of the Securities and Exchange
Commission require such examination. Short-term debt obligations with a
remaining maturity of more than 60 days will be valued in the same way as are
debt securities held in the Intermediate Term Bond, Long Term Bond and
Government Securities Portfolios, as described below in "Valuation of
Intermediate Term Bond, Long Term Bond and Government Securities Portfolios".
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<PAGE> 28
VALUATION OF EQUITY INCOME AND EQUITY GROWTH PORTFOLIOS
The net asset value of the securities held in Equity Income and Equity
Growth Portfolios, other than short-term obligations valued on an amortized-cost
basis, will be determined in the following manner. Each security traded on a
national securities exchange will be valued at the price which, on the date of
valuation, is the last sales price (or the last bid price if there were no sales
of the security on that day) on the New York Stock Exchange, or if not traded on
the New York Stock Exchange, such last sales or bid price on the principal
exchange on which such security is traded at the time of close of the New York
Stock Exchange. For any securities not traded on a national securities exchange
but traded in the over-the-counter market, the value will be the last bid price
available at the time of close of the New York Stock Exchange, except that the
securities for which quotations are furnished through a nationwide automated
quotation system approved by the NASDAQ will be valued at the closing best bid
price so furnished on the date of valuation.
VALUATION OF INTERMEDIATE TERM BOND, LONG TERM BOND AND GOVERNMENT SECURITIES
PORTFOLIOS
In determining the net asset value of securities held in the Intermediate
Term Bond, Long Term Bond, and Government Securities Portfolios, securities will
be valued based on a decision as to the broadest and most representative market
for such security. The value will be based on either (i) the last available sale
price on a national securities exchange, (ii) in the absence of recorded sales,
the average of readily available closing bid and asked prices on national
securities exchanges, or (iii) the average of the quoted bid and asked prices in
the over-the-counter market. Securities or assets for which market quotations
are not readily available will be valued at fair value as determined by the
Investment Adviser under the direction of the Board of Directors of the Fund.
VALUATION OF MONEY MARKET PORTFOLIO
The net asset value of shares of the Money Market Portfolio will normally
remain at $1.00 per share, because the net investment income of this Portfolio
(including realized and unrealized gains and losses on Portfolio holdings) will
be declared as a dividend each time the Portfolio's net income is determined
(see DIVIDENDS, DISTRIBUTIONS AND TAXES, at page 23). If in the view of the
Board of Directors of the Fund it is inadvisable to continue to maintain the net
asset value of the Money Market Portfolio at $1.00 per share, the Board reserves
the right to alter the procedure. The Fund will notify Shareholders of any such
alteration.
The Fund will value all short-term debt obligations held in the Money
Market Portfolio on an amortized-cost basis. The regulations of the Securities
and Exchange Commission (SEC) require that, as a condition for using amortized
cost valuation, the Money Market Portfolio (i) maintain a dollar-weighted
average portfolio maturity not exceeding 90 days, and (ii) limit its portfolio
investments to those United States dollar-denominated instruments determined to
present minimal credit risks and which at the time of acquisition are Eligible
Securities. Eligible Securities include any security (i) issued with, or with a
remaining maturity of, 397 days or less which is rated (or, if unrated, the
issuer of which also issues short-term securities any one of which, comparable
in priority and security, is rated) by an SEC designated statistical rating
organization in one of the two highest rating categories for short-term debt
obligations; or (ii) the issuer of which does not have any securities which have
a short term rating but which security is (x) comparable in priority and
security to a security which has been rated in one of the two highest rating
categories for short term debt obligations by an SEC designated statistical
rating organization, and (y) not a security which had an original maturity in
excess of 397 days and which received a rating as a long term debt obligation
from such a rating organization that was not within the two highest rating
categories. In the event of sizable changes in interest rates, however, the
value determined by amortized cost valuation may be higher or lower than the
price that would be received if the obligation were sold. On these occasions (if
any should occur) as a further condition to using amortized-cost valuation,
procedures have been established by the Board of Directors to determine whether
the deviation might be enough to affect the value of shares in the Money Market
Portfolio by more than one-half of one percent, and if it does, an appropriate
adjustment will be made in the value of the obligations.
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<PAGE> 29
VALUATION OF DIVERSIFIED PORTFOLIO
In determining the net asset value of the Diversified Portfolio, the method
of valuation of a security will depend on the type of investment involved. A
security which is a common stock will be valued in the same way as securities
held in the Equity Income Portfolio or Equity Growth Portfolio; a security which
is an intermediate or long-term fixed income security in the same way as
securities held in the Intermediate Term Bond Portfolio, Long Term Bond
Portfolio, and Government Securities Portfolio, and short-term debt obligations
held in the Diversified Portfolio (other than those valued on an amortized-cost
basis) will be valued in the same way as debt securities held in the
Intermediate Term Bond Portfolio, Long Term Bond Portfolio or Government
Securities Portfolio.
SHARES IN THE FUND
The authorized capital stock of the Fund consists of 2 billion shares, par
value $.01 per share. The shares of capital stock are divided into seven
classes: Equity Income Portfolio Capital Stock (150 million shares); Equity
Growth Portfolio Capital Stock (150 million shares); Intermediate Term Bond
Portfolio Capital Stock (150 million shares); Long Term Bond Portfolio Capital
Stock (150 million shares); Government Securities Portfolio Capital Stock (150
million shares); Money Market Portfolio Capital Stock (250 million shares); and
Diversified Portfolio Capital Stock (150 million shares). The Fund may in the
future allocate some of the remaining authorized shares to these classes, or
create new classes of capital stock corresponding to new portfolios and allocate
some of the remaining authorized shares to such new classes and then issue
shares of such new classes. Each share of stock will have a pro-rata interest in
the assets of the Portfolio to which the stock of that class relates and will
have no interest in the assets of any other Portfolio. Holders of shares of any
Portfolio are entitled to redeem their shares as set forth under PURCHASE AND
REDEMPTION OF SHARES at page 21. The shares of each Portfolio, when issued, will
be fully paid and non-assessable, will have no preemptive, conversion, exchange
or similar rights, and will be freely transferable. The shares do not have
cumulative voting rights. Holders of more than 50 percent of the shares of the
Fund voting for the election of directors can, if they choose to do so, elect
all of the Fund's directors, and in such event the holders of the remaining
shares would not be able to elect any directors.
MONY provided the initial capital for each of the Fund's Portfolios. MONY
held shares attributable to its initial capital investment. At December 31,
1993, MONY had redeemed all shares attributable to its initial capital
investment, except that MONY provided $1,000,000 in capital to the Government
Securities Portfolio on November 18, 1994. Additional shares may be acquired by
MONY during the Fund's operation or any new portfolio's start-up period. The
acquisition of shares by MONY will enable the Portfolios (or any new portfolios)
to avoid an unrealistically poor investment performance that might otherwise
result because the amounts available for investment were too small, as well as
to satisfy the net worth requirements of the 1940 Act. MONY may also acquire
additional shares through dividend reinvestment in connection with the shares
acquired during the start-up period. Any shares acquired by MONY (other than for
allocation to MONY Variable Account A, MONY Variable Account L, MONY Variable
Account S, or the Keynote Series Account) will be acquired for investment and
can be disposed of only by redemption. They will not be redeemed by MONY until
the other assets of the Portfolios are large enough so that redemption will not
have an adverse effect upon investment performance. MONY will vote these shares
in the same proportion as the shares held in the Variable Accounts, which
generally are voted in accordance with the instructions of Contract holders.
VOTING RIGHTS
All shares of capital stock of the Fund have equal voting rights
(regardless of the net asset value per share) except that only shares of the
respective Portfolios are entitled to vote on matters concerning only that
Portfolio. Pursuant to the 1940 Act and the rules and regulations thereunder,
certain matters approved by a vote of all shareholders of the Fund may not be
binding on a Portfolio whose shareholders have not approved that matter. Each
outstanding share of each Portfolio is entitled to one vote and to participate
equally in
23
<PAGE> 30
dividends and distributions declared by that Portfolio and, upon dissolution or
liquidation, in the Portfolio's net assets after satisfying outstanding
liabilities.
The voting rights of Contract holders, and limitations on those rights, are
explained in the accompanying prospectus for the Contract. MONY and MONY America
as the owners of the assets in the Variable Accounts, are entitled to vote all
of the shares of the Fund attributable to the Variable Accounts, but they will
generally do so in accordance with the instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The Fund might under these
circumstances be deemed to be controlled by MONY and MONY America by virtue of
the definitions contained in the 1940 Act although the Fund disclaims that such
control exists.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund and each of its portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). For a description of the restrictions
that apply to qualifying as a regulated investment company, see FEDERAL INCOME
TAX STATUS at page 17. Under those provisions, the Fund and each of its
portfolios will not be subject to federal income tax on the portion of its net
ordinary income and net realized capital gains that each portfolio distributes
to MONY and MONY America, for allocation to the Variable Accounts or to MONY
with respect to shares acquired with initial or additional capital. Since the
only shareholders of the Fund will be MONY and MONY America there is no
discussion in this Prospectus of the federal income tax consequences at the
shareholder level. For information concerning the federal tax consequences to
the Contract holders, see the attached prospectus for the Contracts.
The Fund intends to distribute as dividends substantially all the net
ordinary income, if any, of each Portfolio. For dividend purposes, net ordinary
income of each Portfolio, other than the Money Market Portfolio and the
short-term debt portion of any other Portfolio, consists of (i) all dividends
received (other than stock dividends), (ii) plus all interest and other ordinary
income accrued, (iii) plus all short-term capital gains realized, (iv) less the
expenses of such Portfolio (including fees payable to the Investment Adviser).
Net ordinary income of the Money Market Portfolio and the short-term debt
portion of any other Portfolio consists of (i) interest accrued and/or discount
earned (including both original issue and market discount), (ii) plus all
realized net short-term capital gains, (iii) less the expenses of the Portfolio
(including the fees payable to the Investment Adviser). Dividends on the Money
Market Portfolio will be declared and reinvested daily in additional full and
fractional shares of the Portfolio. Shares corresponding to the Money Market
Portfolio will begin accruing dividends on the day following the date on which
they are issued. Dividends from investment income of the other Portfolios will
be declared and reinvested in additional full and fractional shares annually,
although the Fund may make distributions more frequently, except that MONY may
elect to receive dividends on the shares acquired to provide operating capital
in cash.
The Fund will normally declare and distribute annually all net realized
capital gains of each portfolio of the Fund (other than short-term gains of the
Money Market Portfolio, which are declared as dividends daily). In determining
the amount of capital gains to be distributed, the realized capital gains and
losses of each of the Portfolios are calculated separately. This will not cause
any of the Portfolios to have a different investment performance than it would
if it were taxed, together with the other Portfolios, as a single investment
company and it will not affect the value of Contract holders' interests under
the Contracts.
The Fund and each of its Portfolios intend to declare dividends for each
calendar year payable to shareholders of record as of a specified date and
distribute such dividends in March of the following calendar year. In
determining the capital gains distribution, the Fund and each of its Portfolios
will calculate net realized capital gains for each calendar year.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
24
<PAGE> 31
SHAREHOLDER REPORTS AND INQUIRIES
The Fund will send each shareholder, at least annually, reports showing as
of a specified date the number of shares in each Portfolio credited to the
shareholder. The Fund will also send Contract holders semiannual reports showing
the financial condition of the Portfolios and the investments held in each. The
annual report may take the form of an updated copy of the Prospectus.
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. Set forth below for
each Portfolio is the manner in which the data contained in such advertisements
will be calculated.
Money Market Portfolio. The performance data for this Portfolio will
reflect the "yield" and "effective yield". The "yield" of the Portfolio refers
to the income generated by an investment in the Portfolio over the seven day
period stated in the advertisement. This income is "annualized", that is, the
amount of income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the Portfolio is assumed to be reinvested.
The "effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
All Other Portfolios. The performance data for the Portfolios will reflect
the "yield" and "total return". The "yield" of each of the Portfolios (except
for a 7 day period for the Money Market Portfolio) refers to the income
generated by an investment in that Portfolio over the 30 day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value on the last day of the period.
"Total return" for each of these Portfolios refers to the return a Shareholder
would receive during the period indicated if a $1,000 investment was made the
indicated number of years ago. It reflects investment results less charges and
deductions of the Fund. Returns for periods exceeding one year reflect the
average annual total return for such period. Total return data may also be shown
for larger investments which would reflect the average size purchase payment
made for Contracts, the purchasers of which may allocate purchase payments to
Subaccounts which purchase shares of the Portfolios of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index and the
Shearson Lehman Brothers, Government/Corporate Index, and to various ranking
services, including, without limitation, the Lipper Annuity and Closed End
Survey compiled by Lipper Analytical Services and the VARDS report compiled by
Variable Annuity Research and Data Service in order to provide the reader a
basis for comparison.
ADDITIONAL INFORMATION
This Prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
For further information, including the Statement of Additional Information,
shareholders may also contact the Fund's office at the address or at the phone
number set forth on the cover of this Prospectus.
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<PAGE> 32
APPENDIX A
SECURITIES IN WHICH THE MONEY MARKET
PORTFOLIO MAY CURRENTLY INVEST
The Money Market Portfolio, and the other Portfolios to the extent their
investment policies so provide, may invest in the following short-term, debt
securities regularly bought and sold by financial institutions:
1. U.S. Treasury Bills, other obligations issued or guaranteed by the
U.S. Government, obligations of U.S. agencies or instrumentalities which
are backed by the U.S. Treasury, and obligations issued or guaranteed by
U.S. agencies or instrumentalities and backed solely by the issuing agency
or instrumentality. These are debt securities (including bills,
certificates of indebtedness, notes, and bonds) issued or guaranteed by the
U.S. Treasury or by an agency or instrumentality of the U.S. Government
that is established under the authority of an act of Congress. Such
agencies or instrumentalities include, but are not limited to, the Federal
National Mortgage Association, the Federal Farm Credit Bank, the Federal
Home Loan Bank and the Government National Mortgage Association. Although
all obligations of agencies and instrumentalities are not direct
obligations of the U.S. Treasury, payment of the interest and principal on
them is generally backed directly or indirectly by the U.S. Treasury. This
support can range from the backing of the full faith and credit of the
United States, to U.S. Treasury guarantees, or to the backing solely of the
issuing agency or instrumentality itself.
2. Obligations (including certificates of deposit, bankers'
acceptances and time deposits) of any bank organized under the laws of the
United States or any state thereof or of foreign branches of such banks or
foreign banks, provided that such bank has, at the time of the Portfolio's
investment, total assets of at least $1 billion or the equivalent. The term
"certificates of deposit" includes both Eurodollar certificates of deposit,
which are traded in the over-the-counter market, and Eurodollar time
deposits, for which there is generally not a market and Yankee certificates
of deposit. "Eurodollars" are dollars deposited in banks outside the United
States and Yankee certificates of deposit are certificates of deposit
denominated in U. S. dollars and issued in the United States by the
domestic branch of a foreign bank and are primarily traded in the United
States. An investment in Eurodollar instruments involves risks that are
different in some respects from an investment in debt obligations of
domestic issuers, including future political and economic developments such
as possible expropriation or confiscatory taxation that might adversely
affect the payment of principal and interest on the Eurodollar instruments.
In addition, foreign branches of domestic banks and foreign banks may not
be subject to the same accounting, auditing and financial standards and
requirements as domestic banks. Finally, in the event of default, judgments
against a foreign branch or foreign bank might be difficult to obtain or
enforce. Yankee certificates have risks substantially similar to those of
Eurodollar certificates.
"Certificates of deposit" are certificates evidencing the indebtedness
of a commercial bank to repay funds deposited with it for a definite period
of time (usually from 14 days to one year). "Bankers' acceptances" are
credit instruments evidencing the obligation of a bank to pay a draft which
has been drawn on it by a customer. These instruments reflect the
obligation both of the bank and of the drawer to pay the face amount of the
instrument upon maturity. "Time deposits" are non-negotiable deposits in a
bank for a fixed period of time.
3. Commercial paper issued by corporations which at the date of
investment is rated (a) by any two SEC designated statistical rating
organizations in one of the two highest rating categories for short-term
debt obligations or, (b) if not rated, issued by domestic or foreign
corporations which have an outstanding senior long-term debt issue rated by
any two SEC designated statistical rating organizations in one of the two
highest rating categories for short-term debt obligations. "Commercial
paper" consists of short-term (usually from 1 to 270 days) unsecured
promissory notes issued by corporations in order to finance their current
operations. If the commercial paper is issued by a foreign corporation, it
must be U.S. Dollar denominated.
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<PAGE> 33
4. Other corporate obligations issued by domestic or foreign
corporations which at the date of investment are rated by any two SEC
designated statistical rating organizations in one of the two highest
rating categories for short-term debt obligations. "Corporate obligations"
are bonds and notes issued by corporations and other business
organizations, including business trusts, in order to finance their long-
term credit needs. If the obligation is issued by a foreign corporation, it
must be U.S. Dollar denominated.
5. Repurchase Agreements. When the Money Market Portfolio purchases
money market securities of the types described above, it may on occasion
enter into a repurchase agreement with the seller wherein the seller and
the buyer agree at the time of sale to a repurchase of the security at a
mutually agreed upon time and price. The period of maturity is usually
quite short, possibly overnight or a few days, although it may extend over
a number of months. The resale price is in excess of the purchase price,
reflecting an agreed-upon market rate of interest effective for the period
of time the Portfolio's money is invested in the security, and is not
related to the coupon rate of the purchased security. Repurchase agreements
may be considered loans of money to the seller of the underlying security,
which are collateralized by the securities underlying the repurchase
agreement. The Fund will not enter into repurchase agreements unless the
agreement is "fully collateralized," i.e., the value of the securities is,
and during the entire term of the agreement remains, at least equal to the
amount of the "loan" including accrued interest. The Fund's custodian bank
will take possession of the securities underlying the agreement, and the
Fund will value them daily to assure that this condition is met. The Fund
has adopted standards for the parties with whom it will enter into
repurchase agreements which it believes are reasonably designed to assure
that such a party presents no serious risk of becoming involved in
bankruptcy proceedings within the time frame contemplated by the repurchase
agreement. In the event that a seller defaults on a repurchase agreement,
the Fund may incur a loss in the market value of the collateral, as well as
disposition costs; and, if a party with whom the Fund had entered into a
repurchase agreement becomes involved in bankruptcy proceedings, the Fund's
ability to realize on the collateral may be limited or delayed and a loss
may be incurred if the collateral security of the repurchase agreement
declines in value during the bankruptcy proceedings.
6. Reverse Repurchase Agreements. The Portfolio may enter into
reverse repurchase agreements with banks, which agreements have the
characteristics of borrowing and involve the sale of securities held by the
Portfolio with an agreement to repurchase the securities at an agreed-upon
price and date, which reflect a rate of interest paid for the use of funds
for the period. Generally, the effect of such a transaction is that the
Portfolio can recover all or most of the cash invested in the securities
involved during the term of the reverse repurchase agreement, while in many
cases it will be able to keep some of the interest income associated with
those securities. Such transactions are only advantageous if the Portfolio
has an opportunity to earn a greater rate of interest on the cash derived
from the transaction than the interest cost of obtaining that cash. The
Portfolio may be unable to realize a return from the use of the proceeds
equal to or greater than the interest required to be paid. Opportunities to
achieve this advantage may not always be available, and the Portfolio
intends only to use the reverse repurchase technique when it appears to be
to its advantage to do so. The use of reverse repurchase agreements may
magnify any increase or decrease in the value of the Portfolio's
securities. The Fund's custodian bank will maintain in a separate account
securities of the Portfolio that have a value equal to or greater than the
Portfolio's commitments under reverse repurchase agreements.
7. Asset backed securities are securities that have been structured to
receive payment from an identified pool of assets. These pools are
typically overcollateralized or they have some sort of financial guaranty
such as a letter of credit or a third party guaranty to ensure full and
timely repayment.
8. Limited liquidity securities/securities sold under SEC Rule 144A. A
substantial market of qualified institutional buyers may develop under Rule
144A of the 1933 Act for securities that are subject to legal or
contractual restrictions on resale. If such a market develops, these
securities may be treated as liquid securities. To the extent that for a
period of time qualified institutional buyers cease purchasing such
securities pursuant to Rule 144A, there may be an increase in the level of
illiquidity in the portfolio during such period.
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<PAGE> 34
Notwithstanding the above, it is the present intention of the Fund that the
Money Market Portfolio continue to qualify under the requirements of Rule 2a-7
of the Securities and Exchange Commission ("SEC") which permits the Portfolio to
use the amortized cost method of valuation to calculate net asset value if the
Portfolio's funds are invested in accordance with its guidelines. Briefly, those
guidelines require investment in Eligible Securities (see VALUATION OF MONEY
MARKET PORTFOLIO at page 22 for a discussion of Eligible Securities) which
qualify as First or Second Tier securities under the Rule. First Tier securities
include any Eligible Security which (i) is rated (or, if unrated, the issuer of
which also issues short-term securities any one of which, comparable in priority
and security, is rated) by an SEC designated statistical rating organization in
its highest category for short-term debt obligations, or (ii) is a security
having a remaining maturity of 397 days or less when acquired but which has an
original maturity in excess of 397 days and which is now comparable in priority
and security to a short-term security of the same issuer which is rated by an
SEC designated statistical rating organization in the highest category for
short-term debt obligations; or (iii) is unrated as a short-term security (and,
if rated as a long-term security, received a rating in one of the two highest
categories) and is issued by an issuer which has no rated short-term debt
obligations comparable in priority and security. A Second Tier security is any
Eligible Security (see VALUATION OF MONEY MARKET PORTFOLIO at page 22 for a
discussion of Eligible Securities) which is not a First Tier security.
A-3
<PAGE> 35
APPENDIX B
APPENDIX
DESCRIPTION OF COMMERCIAL PAPER AND CORPORATE BOND RATINGS
Commercial Paper Ratings
Moody's commercial paper ratings are opinions of the ability of issuers to
repay promissory obligations when due. Moody's employs the following three
designations, all judged to be investment grade, to indicate the relative
repayment capacity of rated issuers: Prime 1 - Superior Ability for Repayment;
Prime 2 - Strong Ability for Repayment; Prime 3 - Acceptable Ability for
Repayment.
S&P's commercial paper rating is a current assessment of the likelihood of
timely payment. Ratings are graded into four categories, ranging from "A" for
the highest quality obligations to "D" for the lowest. Issues assigned the
highest rating, "A", are regarded as having the greatest capacity for timely
payment. Issues in this category are delineated with the numbers "1", "2", and
"3" to indicate the relative degree of safety. The designation "A-1" indicates
that the degree of safety regarding timely payment is either overwhelming or
very strong. The "A+" designation is applied to those issues rate "A-1" which
possess overwhelming safety characteristics. Capacity for timely payment on
issues with the designation "A-2" is strong. However, the relative degree of
safety is not as high as for issues designated "A-1."
Fitch's commercial paper ratings represent Fitch's assessment of the
issuer's ability to meet its obligations in a timely manner. The assessment
places emphasis on the existence of liquidity. Ratings range from "F-1+" which
represents exceptionally strong credit quality to "F-4" which represents weak
credit quality.
Duff's short-term ratings apply to all obligations with maturities of under
one year, including commercial paper, the uninsured portion of certificates of
deposit, unsecured bank loans, master notes, bankers acceptances, irrevocable
letters of credit and current maturities of long-term debt. Emphasis is placed
on liquidity. Ratings range for Duff 1+ are regarded as having the highest
certainty of time payment. Issues rated Duff 1 are regarded as having very high
certainty of timely payment.
Thomson's BankWatch, Inc. assigns only one Issuer Rating to each company,
based upon a qualitative and quantitative analysis of the consolidated
financials of an issuer and its subsidiaries. The rating incorporates TBW's
opinion of the vulnerability of the company to adverse developments which may
impact the marketability of its securities, as well as the issuer's ability to
repay principal and interest. Ratings range from "TBW-1" for highest quality to
"TBW-3" for the lowest, companies with very serious problems.
Bond Ratings
A bond rated "Aaa" by Moody's is judged to be the best quality. They carry
the smallest degree of investment risk. Interest payments are protected by a
large or by an exceptionally stable margin and principal is deemed secure. While
the various protective elements may change, such foreseeable changes are
unlikely to impair the fundamentally strong position of such issues. Bonds which
are rated "Aa" are judged to be of high quality by all standards. Together with
the "Aaa" group they comprise what are generally known as high grade bonds.
Margins of protection on "Aa" bonds may not be as large as on "Aaa" securities
or fluctuations of protective elements may be of greater magnitude or there may
be other elements present which make the long-term risks appear somewhat larger
than "Aaa" securities. Bonds which are rated "A" possess many favorable
investment attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are considered
adequate but elements may be present which suggest a susceptibility to
impairment some time in the future. Bonds rated "Baa" are considered medium
grade obligations whose interest payments and principal security appear adequate
for the present but may lack certain protective elements or may be
characteristically unreliable over any great length of time. Moody's applies
numerical modifiers "1", "2" and "3" in each generic rating classifications from
"Aa" through "B" in
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its corporate bond rating system. The modifier "1" indicates that the security
ranks in the higher end of its generic rating category; the modifier "2"
indicates a mid-range ranking; and the modifier "3" indicates that the issue
ranks in the lower end of its generic rating category. Bonds rated "Ba" are
judged to have speculative elements and bonds rated below "Ba" are speculative
to a higher degree.
Debt rate "AAA" by S&P has the highest rating assigned by it. Capacity to
pay interest and repay principal is extremely strong. Debt rated "AA" has a
strong capacity to pay interest and repay principal and differs from "AAA"
issues only in small degree. Debt rated "A" has a strong capacity to pay
interest and repay principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than debt in
higher rated categories. Debt rated "BBB" is regarded as having an adequate
capacity to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and
repay principal for debt in this category than in higher rated categories. Debt
rated "BB" and below is regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and repay principal.
Debt rated "AAA", the highest rating by Fitch, is considered to be of the
highest credit quality. The obligor has an exceptionally strong ability to pay
interest and repay principal, which is unlikely to be affected by reasonably
foreseeable events. Debt rated "AA" is regarded as very high credit quality. The
obligor's ability to pay interest and repay principal is very strong. Debt rated
"A" is of high credit quality. The obligor's ability to pay interest and repay
principal is considered to be strong, but may be more vulnerable to adverse
changes in economic conditions and circumstances than debt with higher ratings.
Debt rated "BBB" is of satisfactory credit quality. The obligor's ability to pay
interest and repay principal is adequate, however a change in economic
conditions may adversely affect timely payment. Plus (+) and minus (-) signs are
used with a rating symbol (except "AAA") to indicate the relative position
within the category.
Debt rated "AAA", the highest rating by Duff is considered to be of the
highest credit quality. The risk factors are negligible being only slightly more
than for risk-free U.S. Treasury debt. Debt rated "AA" is regarded as high
credit quality. Protection factors are strong. Risk is modest but may vary
slightly from time to time because of economic conditions. Debt rated "A" is
considered to have average but adequate protection factors. Bonds rated "BBB"
are considered to have below average protection factors but still sufficient for
prudent investment. Bonds rated "BB" and below are below investment grade and
possess fluctuating protection factors and risk.
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STATEMENT OF
ADDITIONAL INFORMATION
MAY 1, 1997
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS, BUT SHOULD BE READ
IN CONJUNCTION WITH THE CURRENT PROSPECTUS FOR MONY SERIES FUND, INC. DATED MAY
1, 1997. TO OBTAIN THIS PROSPECTUS PLEASE CALL 1-800-487-6669 OR WRITE:
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
TABLE OF CONTENTS
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PAGE
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<S> <C>
GENERAL INFORMATION................................................................... 1
INVESTMENT RESTRICTIONS............................................................... 1
INVESTMENT ADVISORY AND OTHER SERVICES................................................ 3
Distribution of Shares.............................................................. 4
Custodian........................................................................... 5
Independent Accountants............................................................. 5
Service Marks License............................................................... 5
MANAGEMENT OF THE FUND................................................................ 6
SUBSEQUENT ANNUAL MEETINGS............................................................ 8
CONTROL PERSONS....................................................................... 9
PORTFOLIO BROKERAGE AND RELATED PRACTICES............................................. 9
FEDERAL INCOME TAX STATUS............................................................. 10
PERFORMANCE DATA...................................................................... 10
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS................................ F-1
</TABLE>
<PAGE> 38
GENERAL INFORMATION
MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized on
December 14, 1984, currently consists of seven (7) different Portfolios that
are, in effect, separate investment funds: Equity Income Portfolio, Equity
Growth Portfolio, Intermediate Term Bond Portfolio, Long Term Bond Portfolio,
Government Securities Portfolio, Money Market Portfolio, and Diversified
Portfolio (the "Portfolios"). The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, diversified, management
investment company. This registration does not imply any supervision by the
Securities and Exchange Commission over the Fund's management or its investment
policies or practices.
For more detailed information about the Fund, including information on the
purchase, redemption and pricing of the shares of the Fund, as well as the
Fund's tax status, see the Prospectus of the Fund (STRUCTURE OF THE FUND,
PURCHASE AND REDEMPTION OF SHARES, SHARES IN THE FUND, FEDERAL INCOME TAX
STATUS).
INVESTMENT RESTRICTIONS
A description of the investment objectives of each Portfolio, as well as
the policies through which those objectives are pursued, is contained in the
Prospectus (INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS).
In addition, the current Portfolios of the Fund are subject to certain
fundamental investment restrictions that may not be changed except with the
approval of a majority vote of the outstanding shares of the Portfolio affected
(which for this purpose and under the 1940 Act means the lesser of (i) 67
percent of the Portfolio shares represented at a meeting at which more than 50
percent of the outstanding Portfolio shares are represented or (ii) more than 50
percent of the outstanding Portfolio shares). The Fund may in the future create
new portfolios that may be subject to different investment restrictions.
The fundamental investment restrictions applicable to the seven current
Portfolios, including those fundamental restrictions described in the Prospectus
(INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS), are:
1. The Portfolios will not: (a) invest in the securities of any
company for the purpose of exercising control or management thereof (alone
or together with the other Portfolios); (b) write or purchase put or call
options; (c) purchase securities on margin, except for such short-term
credits as are necessary for the clearance of transactions, (d) effect a
short sale of securities, or (e) invest in obligations that are not
denominated in United States dollars.
2. Securities of other issuers will not be underwritten, except that
the right is reserved for each Portfolio to purchase for investment, on
original issue or otherwise, securities that may not subsequently be
distributed to the public without registration or that are exempt from
registration, to the extent that investments in such securities will not
exceed 10 percent of the value of each Portfolio's total assets at the time
such an investment is made. Expenses of any such registration will be borne
by such Portfolio only if its best efforts to have the issuer agree to bear
such expenses are unsuccessful.
3. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
4. The Portfolios will not purchase or sell commodities, commodity
contracts, or oil or gas interests, except that the right is reserved for
each Portfolio to purchase securities of issuers which invest or deal in
the foregoing.
(1)
<PAGE> 39
5. The Portfolios will not engage in the issuance of senior
securities, except in the case of certain borrowings, as described in
paragraph (7) below.
6. Loans, both long and short term, may be made by a Portfolio only
through the purchase or acquisition of privately-placed bonds, debentures,
notes or other evidences of indebtedness (that may or may not be
convertible into stock) of a type customarily acquired by institutional
investors provided, however, that no such purchase or acquisition will be
made if, as a result thereof, more than 10 percent of the value of the
Portfolio's assets would be so invested. (Any such "loan" may be considered
a security subject to the 10 percent investment limitation referred to in
(2) above.) The purchase or acquisition of repurchase agreements,
certificates of deposit or of portions of publicly distributed bonds,
debentures, or other securities, shall not be considered the making of a
loan by the Portfolios for purposes of this restriction.
7. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
8. In general, the Portfolios do not intend to concentrate investments
in any one industry. Accordingly, no Portfolio will make an investment in a
particular industry, if as a result of such investment more than 25 percent
of the value of its assets would be invested in that industry, except that
this restriction shall not apply to (a) obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities or (b) certificates
of deposit issued by, time deposits in, bankers' acceptances accepted by,
or repurchase agreements with, banks organized within the United States.
For purposes of this restriction, neither finance companies as a group nor
utility companies as a group are considered to be a single industry and
will be grouped instead according to their services; for example, gas,
electric, and telephone utilities will each be considered a separate
industry.
9. The Fund will operate as a diversified company as that term is used
in the Investment Company Act of 1940. This means that 75 percent of the
assets of each Portfolio other than the Money Market Portfolio and 100% of
the assets of the Money Market Portfolio is subject to the limitation that
no purchase of a security -- other than cash, cash items, and securities of
the U.S. Government, its agencies or instrumentalities -- will be made if,
as a result of such purchase: (a) more than 5 percent of the value of the
Portfolio's assets would be invested in the securities of one issuer, or
(b) the Fund as a whole or any Portfolio would hold more than 10 percent of
the outstanding voting securities of any one issuer. In addition to the
above limitations, the Money Market Portfolio may not have invested more
than (x) the greater of 1 percent of its Total Assets or $1,000,000 in
securities of any issuer, and (y) 5 percent of Total Assets in securities
of all issuers which were, when acquired by the Portfolio (either initially
or on rollover), Second Tier Securities (see Appendix A of the Prospectus
for a definition of Second Tier Securities). Some uncertainty exists as to
whether certain of the types of bank obligations in which a Portfolio may
invest, such as certificates of deposit and bankers' acceptances, should be
classified as "cash items" rather than "securities" for purposes of this
restriction, which is a diversification requirement under the 1940 Act.
Interpreting most bank obligations as "securities" limits the amount a
Portfolio may invest in the obligations of any one bank to 5 percent of its
total assets. If there is an authoritative decision that any of these
obligations are not "securities" for purposes of this diversification test,
this limitation will not apply to the purchase of such obligations.
10. No Portfolio may purchase or acquire securities of other
investment companies, except in connection with a merger, consolidation,
acquisition or reorganization, or except by purchase in the open market of
securities of closed-end investment companies where no underwriter's or
dealer's commission or profit, other than customary broker's commission, is
involved, provided that immediately thereafter such Portfolio or the Fund
as a whole may not own (a) securities of investment companies having an
aggregate value in excess of 10 percent of such Portfolio's total assets;
(b) more than 3 percent of the
(2)
<PAGE> 40
outstanding voting stock of the investment company; or (c) securities of
the investment company having an aggregate value in excess of 5 percent of
the Portfolio's total assets.
11. No Portfolio will invest more than 10 percent of its total assets
in illiquid assets, including illiquid restricted securities, repurchase
agreements maturing in more than seven days, and non-negotiable time
deposits maturing in more than seven days.
12. The Portfolios will not participate on a joint or a joint and
several basis in trading accounts in securities but this restriction does
not prevent the aggregation of orders for the sale or purchase of Portfolio
securities with the other Portfolios or with any other accounts advised or
sponsored by the Investment Adviser or any of its affiliates to reduce
brokerage commissions or otherwise to achieve the best overall execution.
13. No Portfolio will invest in foreign securities that are not
publicly traded in the United States if at the time of the acquisition more
than 10 percent of such Portfolio's total assets would be invested in such
securities.
The Money Market Portfolio is subject to the additional investment
restriction that it will not invest in any security with a remaining maturity in
excess of one year, except that underlying collateral securities held pursuant
to repurchase agreements may have a remaining maturity of more than one year.
INVESTMENT ADVISORY AND OTHER SERVICES
The Fund has entered into an Investment Advisory Agreement with MONY Life
Insurance Company of America (the "Investment Adviser"), as described in the
Prospectus (INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES).
The Investment Adviser will provide portfolio management and investment
advice to the Fund, as described in the Prospectus, with respect to the seven
current Portfolios of the Fund and any portfolio that the Fund may create in the
future if the Fund designates the Investment Adviser to act as investment
adviser and manager for such new portfolio. The Fund may, at its option, appoint
a different investment adviser for any new portfolio. The Investment Adviser
also is obligated to perform certain administrative and management services for
the Portfolios it manages and to provide all executive, administrative, clerical
and other personnel necessary to operate the Fund, and to pay the salaries of
all these persons. The Investment Adviser will furnish the Fund with office
space, facilities, and equipment and will pay the day-to-day expenses for their
operation and maintenance.
The Investment Adviser has entered into a Services Agreement with The
Mutual Life Insurance Company of New York ("MONY"), as briefly described in the
Prospectus. Under this Services Agreement MONY will provide the Investment
Adviser, with some or all of the personnel, services, facilities, supplies and
equipment necessary for the Adviser to carry out its duties to the Fund. In
return the Investment Adviser will pay to MONY all, or a portion, of the
investment management fee the Investment Adviser receives from the Fund. The
Investment Adviser is a wholly-owned subsidiary of MONY, a mutual life insurance
company organized under the laws of the State of New York in 1842. MONY is
licensed to do business in all fifty states, the District of Columbia, Puerto
Rico, the Virgin Islands, and certain Canadian Provinces. Because the Investment
Advisory Agreement and Services Agreement are interrelated and dependent on each
other, MONY may be deemed to be an investment adviser to the Fund for certain
regulatory purposes. Both MONY and the Investment Adviser are registered as
investment advisers under the Investment Advisers Act of 1940.
The Fund will pay the Investment Adviser an investment management fee,
which will be a daily charge equal to an annual rate of .40 percent of the first
$400 million of the aggregate average daily net assets of the Portfolios, .35
percent of the next $400 million of the aggregate average daily net assets of
the Portfolios, and .30 percent of the aggregate average daily net assets of the
Portfolios in excess of $800 million. The daily charge is divided among the
Portfolios in proportion to their average net assets each day, whether or not
the net assets of each Portfolio are valued on that day. Each Portfolio's share
of the fee is deducted on each
(3)
<PAGE> 41
business day prior to determining the Portfolio's net asset value for that date
and is credited to the Investment Adviser.
The Investment Adviser will pay for (i) the legal, accounting and all other
expenses of organizing the Fund, initially registering and qualifying the Fund
and its securities under federal and state securities laws (including the costs
of printing any prospectuses or other materials in connection with the initial
registration or qualification), (ii) the fees and expense for computing the net
asset value of the Fund's capital stock attributable to the Portfolios; (iii)
the expense in rendering investment advice to the Fund (including any payment to
MONY as agreed to in connection with the Services Agreement); and (iv) the
compensation of directors, officers and employees of the Fund who are interested
persons (as defined by the 1940 Act) of the Investment Adviser. The Fund will
bear all other expenses, including (but without limitation): (a) legal, auditing
or accounting fees and expenses; (b) interest expenses; (c) brokerage fees and
commissions; (d) taxes or governmental fees; (e) the cost of preparing share
certificates or any other direct expense of issue, sale, underwriting,
distribution, redemption or repurchase of shares of the Fund; (f) the cost of
preparing and distributing reports and notices to shareholders; (g) the cost of
holding the Fund's annual or special shareholders' meetings and of any proxy
solicitation; (h) the fees or disbursements of dividend, disbursing, plan,
transfer or other agent; (i) fees or disbursements of custodians of the Fund's
assets; (j) the compensation of all directors, officers and employees of the
Fund who are not interested persons (as defined by the 1940 Act) of the
Investment Adviser; (k) the cost of any fidelity bond for any officer, agent or
employee of the Fund required under the 1940 Act or otherwise; (l) the cost of
any directors and officers' insurance for any directors or officers of the Fund.
The Fund will also bear the cost of maintaining the effectiveness of its
registration and qualification of its capital stock for sale (including the
preparation, printing and mailing of any prospectuses or other materials
required by federal or state authorities); these expenses will be reimbursed to
the Fund by MONY Securities Corp. ("MSC"), a wholly-owned subsidiary of MONY, as
principal underwriter, as described below in "Distribution of Shares." The Fund
will bear any extraordinary or non-recurring expenses (including expenses
associated with legal claims, liabilities, litigation costs and any related
indemnification).
The Investment Adviser has agreed to reimburse the Fund for the amount, if
any, by which the aggregate ordinary operating expenses of any Portfolio in any
calendar year exceed the most restrictive expense limitations then in effect
under state securities law or regulations, as described in the Prospectus
(INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES).
DISTRIBUTION OF SHARES
The Fund presently intends to offer to sell its shares continuously, on a
no-load basis, to MONY Life Insurance Company of America ("MONY America") and
MONY for allocation to MONY America Variable Account L and MONY Variable Account
L to fund benefits under Flexible Premium Variable Life Insurance Contracts
issued by those companies, and to MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option Contracts issued by those
companies, and to MONY America and MONY for allocation to MONY America Variable
Account A and MONY Variable Account A to fund benefits under Flexible Payment
Variable Annuity Contracts issued by those companies, and to MONY for allocation
to Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts issued by MONY. These variable accounts ("Variable Accounts")
invest in shares of the Fund in accordance with allocation instructions received
from Contract holders. (Shares were also purchased by MONY to provide operating
capital for the Fund.) MSC will act as "principal underwriter" of the Contracts
and, therefore, of the shares of the Fund pursuant to written Underwriting
Agreements with the Fund, MONY America and MONY. The Underwriting Agreements
were initially approved by the Fund's Board of Directors, including a majority
of the non-interested directors (as defined by the 1940 Act), on December 20,
1984. Continuance of the Underwriting Agreement with the Fund, MONY and MONY
America for an additional year was most recently approved by the Fund's Board of
Directors on February 20, 1997. The agreements will continue in effect if
approved annually by the Fund's Board of Directors, including a majority of the
non-interested directors. MSC will not receive commissions or other compensation
for acting as
(4)
<PAGE> 42
principal underwriter of the Fund's shares, although MSC's agents and
representatives may receive sales commissions in connection with their sale of
the Contracts. Since shares will be sold only to MONY and MONY America for
allocation to the Variable Accounts, and to MONY in respect of its providing
operating capital to the Fund, it is expected that the Fund will have no
distribution expenses other than the expense of the preparation, printing and
mailing of prospectuses. MONY has agreed to bear such start-up expenses, as well
as any other distribution expenses that may arise.
MSC, as broker-dealer for the Contracts, will be reimbursed by MONY and
MONY America for these distribution expenses. If the Fund in the future is to
bear any of these distribution expenses, the Fund's Board of Directors will
formulate a written distribution plan that complies with the rules of the
Securities and Exchange Commission. Both this distribution plan and any
distribution agreement entered into pursuant to the plan will be approved by the
Fund's Board of Directors, including a majority of the non-interested directors
(as defined by the 1940 Act). The plan will then be submitted for approval at
the next annual meeting of shareholders. Thereafter, both the distribution plan
and any related distribution agreement will continue in effect if approved
annually by a majority of the Fund's Board of Directors, including a majority of
the non-interested directors (as defined by the 1940 Act).
CUSTODIAN
Chase Manhattan Bank, 4 New York Plaza, New York, New York 10004 is the
custodian of the securities held by the Portfolios of the Fund, and is
authorized to use the facilities of the Depository Trust Company and the
facilities of the book-entry system for the Federal Reserve Bank. The Fund acts
as its own transfer agent and dividend-disbursing agent.
INDEPENDENT ACCOUNTANTS
The financial statements and the financial highlights table included in
this Registration Statement have been audited by Coopers & Lybrand L.L.P.,
independent accountants, and are included herein in reliance upon the
accompanying report of that firm, which report is given upon their authority, as
experts in accounting and auditing. The business address of Coopers & Lybrand is
1301 Avenue of the Americas, New York, New York, 10019.
SERVICE MARKS LICENSE
As part of the Investment Advisory Agreement, the Investment Adviser
(acting on behalf of MONY) has granted the Fund permission to use the word
"MONY" in its corporate name and granted a royalty-free, non-exclusive license
to use any service marks adopted by MONY that are appropriate for use by the
Fund. However, the Investment Adviser may terminate this license if MONY, or a
company controlled by it, ceases to be the Fund's investment adviser. The
Investment Adviser may also terminate the license for any other reason upon 60
days' written notice. In this event, the Fund would no longer be able to use the
word "MONY" in its corporate name. In addition, the Investment Advisory
Agreement would also terminate 120 days after the Fund receives such notice,
unless a majority of the outstanding voting shares of the Fund vote to continue
the Agreement notwithstanding the license's termination.
(5)
<PAGE> 43
MANAGEMENT OF THE FUND
The members of the Fund's Board of Directors were selected initially by
MONY. In the future the directors will be elected annually by the Fund's
shareholders. The names of all directors and officers of the Fund and the
principal occupation of each during the last five years are shown below.
DIRECTORS AND OFFICERS OF THE FUND
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<CAPTION>
POSITIONS HELD PRINCIPAL OCCUPATIONS
NAME AND ADDRESS WITH REGISTRANT DURING PAST 5 YEARS
- -------------------------- ------------------------- --------------------------------------
<S> <C> <C>
Kenneth M. Levine*........ Director, Chairman of the 2/94 to present -- Trustee, 1/91 to
1740 Broadway Board, President of the present -- Executive Vice President
New York, New York 10019 Fund and Chief Investment Officer, 2/90 to
1/91 -- Executive Vice President, 8/89
to 2/90 -- Senior Vice
President -- Pension Sector, 1/88 to
8/89 -- Senior Vice President, MONY;
9/91 to present -- Director and
Chairman, MONY Realty Partners, Inc.,
MONY Bloomfield Hills, Inc. and 1740
Ventures, Inc.; 9/91 to present --
Chairman, MONY-Rockville/GP, Inc.;
7/91 to present -- Director and
Executive Vice President, MONY Life
Insurance Company of America; 8/89 to
present -- Director, 1740 Advisers,
Inc.
Floyd L. Smith............ Director of the Fund 1/91 to 12/31/91 -- Vice Chairman,
Naples, Florida 33963 5/89 to 1/91 -- Vice Chairman, Chief
Investment Officer, 10/88 to 12/91 --
Trustee, 10/88 to 5/89 -- Trustee,
Executive Vice President and Chief
Investment Officer; 1/85 to 10/88 --
Executive Vice President and Chief
Investment Officer, MONY; 3/85 to
10/88 -- Director, MONY Life Insurance
Company of Canada; 1/85 to 2/91 --
Director, MONY Legacy Life Insurance
Company; 1/85 to 12/87 -- MONY
Securities Corp.; 1/85 to
12/88 -- Trustee, Vice President and
Treasurer, MONY Real Estate Investors;
1/85 to 12/91 -- Director, MONY Credit
Corporation; 1/85 to
12/90 -- Director, MONYCO, Inc. and
1/85 to 12/91 -- Director, 1740
Ventures, Inc.; 8/86 to
12/90 -- Director and President, MONY
Funding Inc.; 5/86 to
12/91 -- Director, MONY Bloomfield
Hills, Inc. and MONY-Rockville/GP,
Inc.; 7/85 to 12/91 -- Director, MONY
Realty Partners, Inc.; 4/86 to
8/91 -- Director, MONY Realty
Management, Inc.; 3/87 to
12/89 -- Director, ONE Memorial Drive,
Inc.; 1/85 to 3/90 -- Chairman and
Member, The MONY Variable Account-A
and The MONY Variable Account-B.
</TABLE>
(6)
<PAGE> 44
<TABLE>
<CAPTION>
POSITIONS HELD PRINCIPAL OCCUPATIONS
NAME AND ADDRESS WITH REGISTRANT DURING PAST 5 YEARS
- -------------------------- ------------------------- --------------------------------------
<S> <C> <C>
Joel Davis................ Director of the Fund President, Woodworker, Inc. (Magazine
Westport, CT 06880 Publisher). Director, Magazine
Publishers of America.
Michael J. Drabb.......... Director of the Fund 5/89 to 5/92 -- Executive Vice
Convent Station, President, 1/85 to 5/89 -- Senior Vice
New Jersey 07961 President, MONY; 1/85 to
2/91 -- Director and Vice President,
MONY Legacy Life Insurance Company;
1/85 to 5/92 -- Financial Liaison
Officer, MONY Credit Corporation;
11/87 to 3/90 -- Member, The MONY
Variable Account-B Committee; 1/86 to
12/91 -- MONY Funding, Inc.; 7/87 to
12/91 -- Director, MONY Reinsurance
Corporation, MONY-RE Group, Inc. and
MONY-RE Management, Inc.; 3/87 to
12/89 -- Director, ONE Memorial Drive,
Inc.; 7/87 to 12/91 -- Director, MONY
Credit Corporation; 9/85 to
12/89 -- Director, MONY Agricultural
Financial Services, Inc.; 9/85 to
5/92 -- Director, Bell Investment
Acquisition Corporation; 6/85 to
5/92 -- Vice President, MONY Life
Insurance Company of America.
Alan J. Hartnick.......... Director of the Fund 2/93 to present -- Partner, Abelman
New York, New York 10017 Frayne & Schwab, Attorneys-at-Law;
1973 to 2/93 -- Partner, Colton,
Hartnick, Yamin & Sheresky,
Attorneys-at-Law.
Edward E. Hill............ Vice President -- 1/90 to present -- Vice President
1740 Broadway Compliance of the Fund Chief Compliance Officer; 5/87 to
New York, New York 10019 1/90 -- Vice President -- Compliance;
MONY. 7/91 to present -- Vice
President, Compliance, MONY Life
Insurance Company of America; 1/84 to
present -- Vice President, Compliance,
1740 Advisers, Inc. and MONY
Securities Corp.
John P. Keller............ Controller of the Fund 2/88 to present -- Vice President --
1740 Broadway Investment Accounting, MONY. 12/87 to
New York, New York 10019 7/88 -- Controller, ONE Memorial
Drive, Inc.; 5/86 to
7/88 -- Controller, MONY Realty
Management, Inc.; 4/86 to 7/88 --
Controller, MONY -- Rockville/GP,
Inc., and MONY Bloomfield Hills, Inc.;
7/85 to 7/88 -- Controller, MONY
Realty Partners, Inc.; 1/85 to
7/88 -- Assistant Controller, MONYCO,
Inc.; 1/85 to 7/88 -- Controller,
MONY Advisers, Inc. and MONY Credit
Corporation.
</TABLE>
(7)
<PAGE> 45
<TABLE>
<CAPTION>
POSITIONS HELD PRINCIPAL OCCUPATIONS
NAME AND ADDRESS WITH REGISTRANT DURING PAST 5 YEARS
- -------------------------- ------------------------- --------------------------------------
<S> <C> <C>
David V. Weigel........... Treasurer of the Fund 5/91 to present -- Vice President --
1740 Broadway Treasurer, MONY; Vice President and
New York, New York 10019 Treasurer, MONY Credit Corporation and
1740 Ventures, Inc.; 4/91 to
present -- Director, MONY Securities
Corp., 1740 Advisers, Inc., MONY
Brokerage, Inc.; 8/91 to
present -- Treasurer, MONY Life
Insurance Company of America and MONY
Series Fund, Inc.
Frederick C. Tedeschi..... Secretary of the Fund 9/89 to Present -- Vice
1740 Broadway President -- Chief Counsel, Individual
New York, New York 10019 Financial Services, 10/88 to
9/89 -- Senior Counsel -- Individual
Financial Services, 9/87 to
10/88 -- Associate General Counsel,
MONY; 1/90 to 10/96 -- Secretary, MONY
Brokerage, Inc.; 2/90 to 2/91 --
Director, MONY Legacy Life Insurance
Company.
</TABLE>
- ---------------
* Mr. Levine, who is an interested person (as that term is defined in the 1940
Act), is a salaried employee of MONY.
No director or officer of the Fund who is also an officer, director or
employee of MONY or MONY America is entitled to any additional remuneration from
the Fund for his services as one of its directors or officers. Each director of
the Fund who is not an interested person of the Fund will receive a fee of
$1,750 per calendar quarter plus an additional amount of $1,000 for each meeting
of the Board, of a Committee of the Board (as provided for in the By-Laws), or
of the Fund's shareholders that he attends. Non-interested directors will also
be reimbursed for all expenses incurred in connection with attendance at
meetings.
The 1940 Act requires that a majority of the Fund's Board of Directors
shall be persons who are not interested persons of MONY, the Investment Adviser
or the Fund. The membership of the Board complies with this requirement. Certain
actions of the Board, including the annual continuance of the Investment
Advisory Agreement between the Fund and the Investment Adviser and the Services
Agreement between the Investment Adviser and MONY, must be approved by a
majority of the members of the Board who are not interested persons of MONY, the
Investment Adviser or the Fund. One of the five members of the Board, Mr. Levine
is an interested person of MONY, the Investment Adviser and the Fund (as that
term is defined in the 1940 Act) because he is an affiliated person of MONY and
the Investment Adviser.
SUBSEQUENT ANNUAL MEETINGS
The Board of Directors of the Fund has amended the By-laws of the Fund to
provide that annual meetings will not be held in any year unless the Investment
Company Act of 1940 (the "1940 Act") requires action on one or more of the
following matters: (1) election of directors; (2) approval of investment
advisory agreement; and (3) ratification of selection of independent public
accountants; and (4) approval of a distribution agreement. The 1940 Act
essentially requires election of directors by shareholders when less than a
majority then in office had been elected by shareholders, and it requires
ratification of the selection of independent public accountants when the
selection of such accountants has not previously been ratified by the
shareholders. It also requires approval of an agreement with an investment
advisor when such agreement has not previously been approved by the shareholders
(other than an agreement with an investment adviser entered into when a new
portfolio of the Fund is created). Currently, the 1940 Act requires a
distribution agreement to be approved by either the board of directors or the
shareholders.
(8)
<PAGE> 46
CONTROL PERSONS
MONY America, a wholly-owned subsidiary of MONY, and MONY through their
respective Variable Accounts will own all of the Fund's outstanding shares,
other than the shares in the Fund purchased for investment by MONY to provide
operating capital for the Portfolios (and any new portfolios) of the Fund
started and any additional shares acquired by MONY through reinvestment of
dividends on those shares. The shares held by the Variable Accounts will
generally be voted in accordance with instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The shares held by MONY in respect
of its providing operating capital to the Fund's Portfolios will be voted in the
same proportions as those voted by MONY and MONY America which are held in the
Variable Accounts. The Fund might nonetheless be deemed to be controlled by MONY
and MONY America by virtue of the definitions contained in the 1940 Act although
the Fund disclaims such control. The amount of shares of each Portfolio of the
Fund owned by directors or officers of the Fund will therefore be less than one
percent.
PORTFOLIO BROKERAGE AND RELATED PRACTICES
The Investment Adviser, which is at all times subject to the direction and
supervision of the Board of Directors of the Fund, is responsible for decisions
to buy and sell securities for the Portfolios, the selection of brokers and
dealers to effect the transactions, and the negotiations of brokerage
commissions, if any. The Investment Adviser may fulfill these responsibilities
to the Fund by using the services of MONY and MONY's Investment Department
personnel under the terms of the Services Agreement between the Investment
Adviser and MONY. For more detailed information about the Services Agreement,
see INVESTMENT ADVISORY AND OTHER SERVICES at pages 3-5.
Transactions on a stock exchange in equity securities will be executed
primarily through brokers that will receive a commission paid by the Fund.
Transactions in money market instruments and bonds, on the other hand, will not
normally incur any brokerage commissions. Such securities, as well as equity
securities traded in the over-the-counter market, are generally traded on a
"net" basis with dealers acting as principals for their own accounts without a
stated commission, although the price of a security usually includes a profit to
the dealer. In underwritten offerings, securities are purchased at a fixed price
that includes an amount of compensation to the underwriter, generally referred
to as the underwriter's concession or discount. Certain of these securities may
also be purchased directly from an issuer, in which case neither commissions nor
discounts are paid.
The Investment Adviser is not obligated to deal with any dealer or group of
dealers in the execution of transactions for the Fund's Portfolios. In
connection with any securities transaction that involves a commission payment,
the Investment Adviser negotiates the commission with the broker in part on the
basis of the quality and quantity of execution services that the broker
provides, in light of generally prevailing commission rates. For the years 1994,
1995, and 1996, the Fund paid $157,223, $22,126, and $17,005, respectively, in
brokerage commissions.
When selecting a broker or dealer in connection with a transaction for any
Portfolio, the Investment Adviser gives consideration to whether the broker or
dealer has furnished MONY or any companies controlled by MONY with certain
research services. These services, which include statistical and economic data
and research reports on particular companies and industries, are services that
brokerage houses customarily provide to institutional investors. MONY personnel
may use these services in connection with all of the investment activities of
MONY or its companies, and some of the data or services obtained in connection
with the execution of transactions for a Portfolio may be used in managing other
investment accounts of MONY or its companies. Conversely, brokers and dealers
furnishing such services may be selected for the execution of transactions of
such other accounts, while the data or service may be used by MONY personnel in
providing investment management for the Fund.
It is the present practice of the Investment Adviser to use brokers
selected primarily on the basis of their furnishing not only satisfactory
execution of the transaction but also research services such as analyses and
(9)
<PAGE> 47
reports concerning issuers and industries, economic factors and portfolio
strategy. In some cases, this could cause the Fund to pay commissions or spreads
in excess of the amount which another broker would have charged for effecting a
similar transaction. In any such case, the Investment Adviser will determine in
good faith that the greater commission or spread is reasonable in relation to
the value of the services provided by the executing broker viewed in terms of
the particular transaction or the Investment Adviser's responsibilities to each
Portfolio and overall responsibilities to all the Portfolios of the Fund and
accounts under the Investment Adviser's and MONY's management. No services other
than brokerage, research and statistical services are considered by the
Investment Adviser in determining the reasonableness and amount of commissions
or spreads to be paid to any broker. All such services obtained from brokers
benefit generally all the accounts and Portfolios under the Investment Adviser's
management and are not identified in any specific account or Portfolio, and may
benefit other accounts under MONY's management. Information so received will be
in addition to and not in lieu of the services required to be performed by the
Investment Adviser.
The Investment Adviser may employ a broker affiliated with the Investment
Adviser or MONY to execute brokerage transactions on behalf of the Portfolios,
as long as the Investment Adviser obtains a price and execution as favorable as
that which would be available through the use of an unaffiliated broker, and no
less favorable than the affiliated broker's contemporaneous charges to its other
most favored, but unaffiliated, customers. The Fund may not engage in any
transactions in which MONY or any of its affiliates acts as principal, including
over-the-counter purchases and negotiated trades in which such a party acts as a
principal.
The Investment Adviser or MONY may enter into business transactions with
brokers or dealers other than using them to execute Portfolio securities
transactions for accounts the Investment Adviser manages. These other
transactions will not affect the Investment Adviser's selection of brokers or
dealers in connection with portfolio transactions for the Fund.
The portfolio turnover rates for each Portfolio of the Fund, for the years
ended December 31, 1987, December 31, 1988, December 31, 1989, December 31,
1990, December 31, 1991, December 31, 1992, December 31, 1993, December 31,
1994, December 31, 1995, and December 31, 1996 are shown on pages 10-14 of the
Prospectus.
FEDERAL INCOME TAX STATUS
The Fund and each of its portfolios intend to qualify as a "regulated
investment company" under the applicable provisions of the Internal Revenue Code
of 1986, as amended (the "Code"). To qualify for treatment as a regulated
investment company, the Fund must meet certain requirements specified in the
Code as described in the Prospectus ("Federal Income Tax Status"). If the Fund
qualifies as a "regulated investment company" by complying with applicable
provisions of the Code and distributes all of its net income (both ordinary
income and capital gain), the Fund will be relieved of federal income tax on the
amounts distributed.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect as
interpreted by the courts and the Internal Revenue Service. For the complete
provisions, reference should be made to the pertinent Code sections and the
Treasury Regulations promulgated thereunder. The Code and these Regulations are
subject to change by legislative, administrative or judicial action. Moreover,
although "series" fund regulated investment companies have been in existence for
many years, there is very little authority interpreting the pertinent provisions
of the Code and Treasury Regulations as they are applied to a "series" fund type
of regulated investment company like the Fund.
PERFORMANCE DATA
Money Market Portfolio. For the seven day period ended December 31, 1996,
the yield was 5.08% and the effective yield was 5.21%.
The yield was calculated by dividing the sum of dividends declared during
the 7 day period on one share purchased at the beginning of the 7 day period by
the value on the first day (the resulting quotient being the
(10)
<PAGE> 48
"Base Period Return") and multiplying the Base Period Return by 365 divided by 7
to obtain the annualized yield.
The effective yield was calculated by compounding the Base Period Return
calculated in accordance with the preceding paragraph, adding 1 to the Base
Period Return, raising that sum to a power equal to 365 divided by 7 and
subtracting 1 from the result.
Dividends reflect the net investment income of the Portfolio. Net
investment income reflects earnings on investments less expenses of the Fund
including the Investment Management Fee (which for calculating the yield and
effective yield quoted above will be the fee which would be charged based upon
the amount of assets under management on the last day of the period for which
the quoted yield is stated, which for the yield and the effective yield quoted
above is .40%). It is the practice of the Money Market Portfolio to pay
dividends daily in the form of shares (thereby maintaining the value of one
share of the Money Market Portfolio at $1.00). However, for the purpose of these
calculations, it has been assumed that no additional shares have been issued and
that dividends are paid in cash.
All Portfolios including the Money Market Portfolio. The average annual
total return for the one, five, and ten year periods ended December 31, 1996,
and for the period since inception through December 31, 1996, are shown in the
following table.
MONY SERIES FUND, INC.
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD SINCE
FOR THE YEAR FOR THE FIVE TEN YEARS INCEPTION
ENDED YEARS ENDED ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
PORTFOLIO 1996 1996 1996 1996
- ------------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Equity Growth (3/4/85)*.................... 20.95% 11.89% 13.98% 13.61%
Equity Income (3/4/85)*.................... 19.76% 15.13% 13.46% 14.12%
Intermediate Term Bond (3/1/85)*........... 3.69% 6.21% 7.07% 8.64%
Long Term Bond (3/20/85)*.................. -0.31% 8.62% 9.04% 10.91%
Government Securities (5/1/91)*............ 3.62% 5.53% n/a 6.59%
Diversified (4/3/85)*...................... 14.44% 10.36% 10.87% 11.48%
Money Market (7/29/85)*.................... 5.00% 4.11% 5.49% 5.52%
</TABLE>
- ---------------
* Inception date.
The table above assumes that a $1,000 payment was made at the beginning of
the period shown, that no further payments were made, that any distributions
from the assets of the Portfolio were reinvested. The average annual total
return percentages shown in the table reflect the average annualized historical
rates of return, deductions for all charges, expenses, and fees of the Fund. The
table does not reflect charges and deductions which are, or may be, imposed
under the Contracts.
(11)
<PAGE> 49
YIELD
The 30 day yield for each of the Portfolios, other than the Money Market
Portfolio, for the 30-day period ended December 31, 1996 is shown in the
following table.
MONY SERIES FUND, INC.
YIELD FOR 30-DAY PERIOD ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM GOVERNMENT
GROWTH INCOME TERM BOND BOND SECURITIES DIVERSIFIED
------ ------ ------------ --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Yield for 30 days ended
December 31, 1996............ 0.40% 2.45% 5.90% 6.58% 6.02% 1.96%
</TABLE>
The yield shown in the table above is computed by subtracting from the net
investment income of the Portfolio of the Fund charges and expenses of the Fund
with respect to the Portfolio and dividing the result by the value of the
Portfolio. For the Equity Growth and Equity Income Portfolios and for the stocks
and equity securities of the Diversified Portfolio of the Fund, net investment
income is the net of the dividends accrued ( 1/360 of the stated dividend rate
multiplied by the number of days the particular security is in the Portfolio) on
all equity securities during the 30-day period and expenses accrued for the
period. It does not reflect capital gains or losses. For the Intermediate Term
Bond, Long Term Bond and the Government Securities Portfolios and the debt
obligations held by the Diversified Portfolio of the Fund, net investment income
is the net of interest earned on the obligation held by the Portfolio and
expenses accrued for the period. Interest earned on the obligation is determined
by (i) computing the yield to maturity based on the market value of each
obligation held in the corresponding Portfolio at the close of business on the
thirtieth day of the period (or as to obligations purchased during that 30-day
period, based on the purchase price plus accrued interest); (ii) dividing the
yield to maturity for each obligation by 360; (iii) multiplying that quotient by
the market value of each obligation (including actual accrued interest) for each
day of the subsequent 30-day month that the obligation is in the Portfolio; and
(iv) totaling the interest on each obligation. Discount or premium amortization
is recomputed at the beginning of each 30-day period and with respect to
discount and premium on mortgage or other receivables-backed obligations subject
to monthly payment of principal and interest, discount and premium is amortized
on the remaining security, based on the cost of the security, to the weighted
average maturity date, if available, or to the remaining term of the security,
if the weighted average maturity date is not available. Gain or loss
attributable to actual monthly paydowns is reflected as an increase or decrease
in interest income during that period.
The yield shown reflects deductions for all charges, expenses, and fees of
the Fund. The table does not reflect charges and deductions which are, or may
be, imposed under the Contracts.
Net investment income of the Portfolio less all charges and expenses of the
Fund with respect to the Portfolio is divided by the product of the average
daily number of shares outstanding and the net asset value of one share on the
last day of the period. The sum of the quotient and 1 is raised to the 6th
power, 1 is subtracted from the result, and then multiplied by 2.
(12)
<PAGE> 50
The table below shows total returns for the year to date (January 1, 1997
to February 14, 1997) assuming a $1,000 payment made at the beginning of the
period and reflecting the same assumptions as the table appearing on page 10:
MONY SERIES FUND, INC.
YEAR TO DATE TOTAL RETURN
ASSUMING $1,000 PAYMENT AT BEGINNING OF PERIOD
<TABLE>
<CAPTION>
JANUARY 1, TO
FEBRUARY 14,
SUBACCOUNT 1997
------------------------------------------------------------------------- -------------
<S> <C>
Equity Growth............................................................ 8.63%
Equity Income............................................................ 8.83%
Intermediate Term Bond................................................... 1.28%
Long Term Bond........................................................... 1.95%
Government Securities.................................................... 1.13%
Diversified.............................................................. 6.67%
Money Market............................................................. 0.62%
</TABLE>
(13)
<PAGE> 51
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Equity Growth Portfolio of Investments.............................................. F-2
Equity Income Portfolio of Investments.............................................. F-4
Intermediate Term Bond Portfolio of Investments..................................... F-6
Long Term Bond Portfolio of Investments............................................. F-7
Diversified Portfolio of Investments................................................ F-8
Government Securities Portfolio of Investments...................................... F-10
Money Market Portfolio of Investments............................................... F-11
Statements of Assets and Liabilities as of December 31, 1996........................ F-13
Statements of Operations as of December 31, 1996.................................... F-14
Statements of Changes in Net Assets................................................. F-15
NOTES TO FINANCIAL STATEMENTS....................................................... F-17
REPORT OF INDEPENDENT ACCOUNTANTS................................................... F-20
</TABLE>
F-1
<PAGE> 52
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 94.7%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 1.0%
Boeing Co. 200 $ 21,275
-------------------
AIR TRANSPORTATION -- 4.3%
AMR Corp.* 300 26,438
Delta Airlines Inc. 400 28,350
UAL Corp.* 600 37,500
-------------------
92,288
-------------------
AUTOMOBILES -- 1.6%
Chrysler Corp. 400 13,200
Ford Motor Co. 300 9,563
General Motors Corp. 200 11,150
-------------------
33,913
-------------------
BANKS/MAJOR -- 4.5%
BankAmerica Corp. 400 39,900
Chase Manhattan Corp. 300 26,775
Citicorp 300 30,900
-------------------
97,575
-------------------
BANKS/REGIONAL -- 2.3%
Banc One Corp. 500 21,500
Wells Fargo & Co. 100 26,975
-------------------
48,475
-------------------
BEVERAGES-SOFT DRINKS -- 2.0%
Coca-Cola Co. 800 42,100
-------------------
BIO-TECHNOLOGIES -- 1.0%
Amgen, Inc.* 400 21,750
-------------------
CHEMICALS -- 3.0%
du Pont (E.I.) de Nemours & Co. 300 28,313
Hercules, Inc. 400 17,300
Monsanto, Co. 500 19,438
-------------------
65,051
-------------------
COSMETICS -- 1.1%
Gillette Company 300 23,325
-------------------
DRUGS -- 8.8%
Bristol Myers Squibb Co. 200 21,750
Lilly(Eli) & Co. 400 29,200
Merck & Co., Inc. 300 23,775
Pfizer Inc. 300 24,863
Pharmaceutical Product
Development Corp.* 500 12,625
Schering-Plough Corp. 200 12,950
Smithkline-Beecham, PLC, ADR+ 500 34,000
Warner Lambert Co. 400 30,000
-------------------
189,163
-------------------
ELECTRICAL EQUIPMENT -- 4.1%
Emerson Electric Co. 300 29,025
General Electric Co. 600 59,325
-------------------
88,350
-------------------
ELECTRONICS -- 6.5%
AMP, Inc. 500 $ 19,188
Applied Materials, Inc.* 300 10,781
Hewlett-Packard Co. 400 20,100
Intel Corp. 400 52,375
Motorola, Inc. 200 12,275
Texas Instruments, Inc. 400 25,500
-------------------
140,219
-------------------
ENTERTAINMENT -- 3.0%
Disney (Walt) Co. 400 27,850
Time Warner, Inc. 500 18,750
Viacom, Inc. Class (B)* 500 17,438
-------------------
64,038
-------------------
FINANCIAL SERVICES -- 2.0%
Federal Home Loan Mortgage
Corp. 200 22,025
Federal National Mortgage Assn. 600 22,350
-------------------
44,375
-------------------
HOSPITAL MANAGEMENT -- 3.3%
Columbia/HCA Healthcare Corp. 450 18,338
Oxford Health Plans, Inc.* 200 11,712
Sunrise Assisted Living, Inc.* 1,000 27,875
United Healthcare Corp. 300 13,500
-------------------
71,425
-------------------
HOSPITAL SUPPLIES -- 1.4%
Johnson & Johnson 600 29,850
-------------------
INSURANCE -- 4.1%
Aetna Inc. 300 24,000
American International Group,
Inc. 300 32,475
General Re Corp. 200 31,550
-------------------
88,025
-------------------
MACHINERY -- 4.0%
Case Corp. 300 16,350
Caterpillar, Inc. 300 22,575
Deere & Co. 600 24,375
Ingersoll-Rand Co. 500 22,250
-------------------
85,550
-------------------
MACHINERY & CONSTRUCTION -- .6%
Fluor Corp. 200 12,550
-------------------
METALS -- .9%
Aluminum Company Of America 300 19,125
-------------------
OFFICE & BUSINESS EQUIP. -- 9.1%
Compaq Computer Corp.* 400 29,700
Electronic Data Systems Corp. 400 17,300
Inference Corp. Class (A)* 1,000 7,250
International Business Machines
Corp. 300 45,300
Micron Technology Inc. 500 14,563
Microsoft, Corp.* 400 33,050
Oracle Corp.* 700 29,225
Sun Microsystems Inc.* 800 20,550
-------------------
196,938
-------------------
</TABLE>
See notes to financial statements.
F-2
<PAGE> 53
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- DOMESTIC -- 3.1%
Amoco, Corp. 200 $ 16,100
Anadarko Pete Co. 200 12,950
Atlantic Richfield Co. 100 13,250
British Petroleum, PLC. ADR+ 101 14,279
Burlington Resources 200 10,075
-------------------
66,654
-------------------
OIL -- INTERNATIONAL -- 5.0%
Chevron, Corp. 400 26,000
Exxon Corp. 200 19,600
Mobil Corp. 200 24,450
Royal Dutch Petroleum Co. 100 17,075
Texaco, Inc. 200 19,625
-------------------
106,750
-------------------
OIL -- SERVICES -- 7.4%
Baker Hughes, Inc. 600 20,700
Energy Ventures Inc. 1,000 50,875
Fort Howard Corp.* 400 11,075
Schlumberger Limited 300 29,963
Trico Marine Services, Inc. 1,000 48,000
-------------------
160,613
-------------------
PAPER -- .6%
International Paper Co. 300 12,113
-------------------
RESTAURANTS -- .8%
McDonald's Corp. 400 18,100
-------------------
SPECIALTY RETAILERS -- 2.7%
Abercrombie & Fitch* 100 1,650
Gap (The), Inc. 600 18,075
Nautica Enterprises, Inc.* 800 20,200
Tommy Hilfiger Corp.* 400 19,200
-------------------
59,125
-------------------
SOAPS -- 1.0%
Procter & Gamble Inc. 200 21,500
-------------------
TELECOMMUNICATIONS -- 1.5%
Octel Communications Corp.* 400 7,000
Worldcom Inc.* 1,000 26,062
-------------------
33,062
-------------------
TELECOMMUNICATIONS-
EQUIPMENT -- 3.0%
Cabletron Systems, Inc.* 600 $ 19,950
Cisco Systems, Inc.* 500 31,813
Teleport Communications, Inc.* 400 12,200
-------------------
63,963
-------------------
TOBACCO -- 1.0%
Philip Morris Cos., Inc. 200 22,519
-------------------
TOTAL COMMON STOCKS
(COST $1,446,496) $ 2,039,759
- ------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
-------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.6%
- ------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.45%, due 01/17/97 (cost
$99,758) $100,000 $ 99,758
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $1,546,254) 99.3% $ 2,139,517
OTHER ASSETS LESS LIABILITIES -- .7% 15,152
- ------------------------------------------------------------------------------
NET ASSETS 100.0% $ 2,154,669
===============================================================
The aggregate cost of securities for federal income tax purposes at December
31, 1996 is $1,551,381.
The following amounts are based on costs for federal income tax purposes.
Aggregate gross unrealized appreciation $ 605,252
Aggregate gross unrealized depreciation (17,116)
-------------------
Net unrealized appreciation $ 588,136
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ American Depository Receipts.
Percentages are based on net assets.
F-3
<PAGE> 54
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 97.9%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 2.2%
Northrop Grumman Corp. 2,500 $ 206,875
United Technologies Corp. 3,000 198,000
----------
404,875
----------
AUTOMOBILES -- 1.4%
Chrysler Corp. 2,000 66,000
Ford Motor Co. 2,500 79,688
General Motors Corp. 2,000 111,500
----------
257,188
----------
AUTOMOTIVE PARTS -- 1.8%
Dana Corp. 6,000 195,750
Eaton Corp. 2,000 139,500
----------
335,250
----------
BANKS/MONEY CENTERS -- 4.4%
Bank of New York Co., Inc. 4,000 135,000
BankAmerica Corp. 2,800 279,300
Bankers Trust New York Corp. 2,000 172,500
Chase Manhattan Corp. 2,500 223,125
----------
809,925
----------
BANKS/REGIONAL -- 4.6%
Banc One Corp. 4,000 172,000
First Union Corp. 3,000 222,000
NationsBank Corp. 2,000 195,500
Wells Fargo & Co. 1,000 269,750
----------
859,250
----------
CHEMICALS -- 4.1%
Dow Chemical Co. 2,000 156,750
du Pont (E.I.) de Nemours
& Co. 2,000 188,750
Monsanto Co. 7,000 272,125
Olin Corp. 4,000 150,500
----------
768,125
----------
CONGLOMERATES -- 4.5%
GATX Corp. 2,000 97,000
General Signal Corp. 4,000 171,000
Harsco Corp. 2,000 137,000
Ogden Corp. 8,000 150,000
Tenneco 2,000 90,250
Textron Inc. 2,000 188,500
----------
833,750
----------
COSMETICS -- 1.5%
Avon Products, Inc. 5,000 285,625
----------
DRUGS -- 9.4%
American Home Products Corp. 3,000 175,875
Baxter International, Inc. 3,000 123,000
Bristol Myers Squibb Co. 1,500 163,125
Lilly (Eli) & Co. 3,000 219,000
Merck and Co., Inc. 3,000 237,750
Pfizer Inc. 1,500 124,313
Schering-Plough Corp. 2,000 129,500
Smithkline Beecham P.L.C. 4,000 272,000
Warner Lambert Co. 4,000 300,000
----------
1,744,563
----------
ELECTRICAL EQUIPMENT -- 4.0%
Emerson Electric Co. 3,000 $ 290,250
General Electric Co. 4,500 444,938
----------
735,188
----------
ELECTRONICS -- 3.1%
AMP Inc. 5,000 191,875
Honeywell Inc. 3,000 197,250
Thomas & Betts Corp. 4,000 177,500
----------
566,625
----------
FOREST PRODUCTS -- 1.2%
Georgia Pacific Corp. 1,500 108,000
Weyerhaeuser Co. 2,500 118,437
----------
226,437
----------
INSURANCE -- 3.7%
Aetna Inc. 2,400 192,000
Allstate Corp. 3,000 173,625
CIGNA Corp. 1,500 204,938
Lincoln National Corp. 2,500 131,250
----------
701,813
----------
MACHINERY -- 3.3%
Cooper Industries, Inc. 3,000 126,375
Deere & Co. 5,000 203,125
Goulds Pumps, Inc. 4,000 91,748
Timken Co. 4,000 183,500
----------
604,748
----------
METALS -- 2.1%
Carpenter Technology Corp. 2,000 73,250
Freeport McMoRan Copper &
Gold, Inc. 3,000 84,375
Phelps Dodge Corp. 1,000 67,500
Reynolds Metals Co. 2,000 112,750
USX-U.S. Steel 1,500 47,063
----------
384,938
----------
MISCELLANEOUS -- 1.1%
Minnesota Mining &
Manufacturing Co. 2,500 207,188
----------
MISCELLANEOUS FINANCE -- 2.0%
American Express Co. 4,000 226,000
Federal National Mortgage
Assn. 4,000 149,000
----------
375,000
----------
NATURAL GAS DIVERSIFIED -- 3.5%
Consolidated Natural Gas Co. 3,000 165,750
El Paso Natural Gas 3,186 160,893
Questar Corp. 4,000 147,000
Sonat Inc. 3,500 180,250
----------
653,893
----------
OFFICE & BUSINESS
EQUIPMENT -- 1.9%
Pitney-Bowes, Inc. 3,500 190,750
Xerox Corp. 3,000 157,875
----------
348,625
----------
OIL -- DOMESTIC -- 1.9%
Amoco, Corp. 2,000 161,000
Atlantic Richfield Co. 1,500 198,750
----------
359,750
----------
</TABLE>
See notes to financial statements.
F-4
<PAGE> 55
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- INTERNATIONAL -- 7.1%
British Petroleum 1,713 $ 242,175
Chevron, Corp. 3,000 195,000
Exxon Corp. 2,000 196,000
Mobil Corp. 1,500 183,375
Royal Dutch Petroleum Co. 1,500 256,125
Texaco, Inc. 2,500 245,313
----------
1,317,988
----------
OIL -- SERVICE &
DRILLING -- 2.3%
Dresser Industries Inc. 5,000 155,000
Williams (The) Companies, Inc. 7,500 281,250
----------
436,250
----------
PAPER -- 1.2%
International Paper Co. 2,500 100,938
Union Camp Corp. 2,500 119,375
----------
220,313
----------
PHOTOGRAPHY -- 1.3%
Eastman Kodak Co. 3,000 240,750
----------
PUBLISHING -- 1.3%
Dun & Bradstreet Corp. 2,500 59,375
McGraw-Hill Companies, Inc. 4,000 184,500
----------
243,875
----------
RAILROADS -- 2.2%
Conrail Inc. 1,148 114,370
Norfolk Southern Corp. 2,000 175,000
Union Pacific Co. 2,000 120,250
----------
409,620
----------
REAL ESTATE -- 4.9%
Avalon Properties Inc. 2,000 57,500
Bay Apartment Community, Inc. 2,000 72,000
Crescent Real Estate 1,500 79,125
Developers Diversified Realty 2,000 74,250
Equity Residential Properties
Trust 2,000 82,500
Felcor Suite Hotels Inc. 3,500 123,813
Health Care Property
Investors, Inc. 5,000 175,000
Healthcare Realty Trust 2,000 53,000
Irvine Apartment Communities,
Inc. 3,000 75,000
Meditrust 1,000 40,000
Redwood Trust Inc. 2,000 74,500
----------
906,688
----------
SAVINGS & LOAN -- 2.0%
Ahmanson (H.F.) & Co. 6,000 195,000
Great Western Financial Corp. 6,000 174,000
----------
369,000
----------
SOAPS -- 1.2%
Colgate Palmolive Co. 2,500 230,625
----------
TELECOMMUNICATIONS
EQUIPMENT -- 1.1%
Harris Corp. 3,000 205,875
----------
TOBACCO -- 2.2%
American Brands Inc. 3,500 173,688
Philip Morris Companies, Inc. 2,000 225,250
----------
398,938
----------
UTILITIES -- ELECTRIC -- 2.8%
American Electric Power Co.,
Inc. 3,000 $ 123,375
Carolina Power & Light Co. 4,000 146,000
FPL Group, Inc. 3,000 138,000
Southern Co. 5,000 113,125
----------
520,500
----------
UTILITIES -- TELEPHONE -- 6.6%
Ameritech Corp. 2,500 151,562
Bell Atlantic Corp. 2,000 129,500
Bellsouth Corp. 3,500 141,313
GTE Corp. 3,000 136,500
NYNEX Corp. 2,000 96,250
Pacific Telesis Group 5,000 183,750
SBC Communications Inc. 2,500 129,375
Sprint, Corp. 4,000 159,500
U.S. West Communications Inc. 3,000 96,745
----------
1,224,495
----------
TOTAL COMMON STOCKS
(COST $12,828,460) $ 18,187,673
<CAPTION>
PRINCIPAL AMOUNT
-------------------
<S> <C> <C>
COMMERCIAL PAPER -- 1.3%
American Express Co., 5.38%, due
01/29/97 $ 100,000 $ 99,582
General Electric Co., 5.50%, due
01/27/97 150,000 149,404
----------
TOTAL COMMERCIAL PAPER
(COST $248,986) $ 248,986
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.1%
Federal Home Loan Mortgage
Corp.,
5.45%, due 01/17/97
(cost $199,516) $ 200,000 $ 199,516
TOTAL INVESTMENTS
(COST $13,276,962) 100.3% $ 18,636,175
OTHER ASSETS LESS LIABILITIES -- (.3%) (63,828)
NET ASSETS 100.0% $ 18,572,347
The aggregate cost of securities for federal income tax purpose at December
31, 1996 is $13,265,982.
The following amounts are based on costs for federal income tax purposes:
Aggregate gross unrealized appreciation $ 5,446,647
Aggregate gross unrealized depreciation (76,454)
----------
Net unrealized appreciation $ 5,370,193
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
F-5
<PAGE> 56
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 52.3%
- ---------------------------------------------------------------
Associates Corp. of North America,
6.00%, due 06/15/00 $1,000,000 $ 985,270
Bank of Boston,
6.625%, due 02/01/04 1,000,000 978,540
Bear Stearns Co. Inc.,
7.25%, due 10/15/06 1,000,000 1,004,010
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 1,015,650
Chase Manhattan Corp.,
6.75%, due 08/15/08 1,000,000 967,500
Chemical Master Credit Card Trust,
5.98%, due 12/15/08 1,000,000 948,980
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 981,930
Connecticut Light & Power Co.,
7.25%, due 07/01/99 1,000,000 1,004,570
First Chicago Corp.,
9.00%, due 06/15/99 1,000,000 1,059,570
First Data Corp.,
6.75%, due 07/15/05 1,000,000 988,050
General Electric Capital Corp.,
6.66%, due 05/01/18 1,000,000 1,007,540
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,011,260
Hertz Corp., senior sub.,
10.125%, due 03/01/97 1,000,000 1,006,630
Laidlaw Inc.,
7.70%, due 08/15/02 1,000,000 1,038,530
Lockheed Martin Corp.,
6.55%, due 05/15/99 1,000,000 1,003,910
National Rural Utilities,
6.75%, due 09/01/01 1,000,000 1,008,290
Occidental Petroleum Corp.,
7.08%, due 01/12/98 1,000,000 1,010,600
Philip Morris Companies, Inc.,
6.80%, due 12/01/03 1,000,000 985,490
Potomac Edison Co.,
8.00%, due 06/01/06 1,000,000 1,022,510
Provident Bank,
6.375%, due 01/15/04 1,000,000 957,580
Structured Asset Securities Co.,
5.944%, due 02/25/28 980,000 960,851
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $20,974,209) $ 20,947,261
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.44%, due 01/06/97 $ 100,000 $ 99,924
Federal Home Loan Mortgage Corp.,
5.42%, due 01/06/97 150,000 149,887
Federal Home Loan Mortgage Corp.,
5.33%, due 01/07/97 100,000 99,912
Federal Home Loan Mortgage Corp.,
5.30%, due 01/13/97 100,000 99,823
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.50%, due 02/15/21 2,000,000 1,958,140
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.00%, due 01/25/03 1,000,000 1,008,790
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $3,399,403) $ 3,416,476
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 32.5%
- -------------------------------------------------------------------------
U.S. Treasury Notes,
6.125%, due 05/31/97 $2,000,000 $ 2,003,120
U.S. Treasury Notes,
7.375%, due 11/15/97 1,000,000 1,011,560
U.S. Treasury Notes,
4.750%, due 09/30/98 2,000,000 1,961,860
U.S. Treasury Notes,
4.750%, due 10/31/98 1,000,000 980,000
U.S. Treasury Notes,
5.875%, due 10/31/98 2,000,000 1,997,500
U.S. Treasury Notes,
6.875%, due 07/31/99 2,000,000 2,040,620
U.S. Treasury Notes,
5.875%, due 11/15/99 1,000,000 995,930
U.S. Treasury Notes,
7.125%, due 02/29/00 1,000,000 1,029,370
U.S. Treasury Notes,
6.375%, due 08/15/02 1,000,000 1,006,560
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $13,048,252) $ 13,026,520
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 5.1%
- -------------------------------------------------------------------------
American Express Co.,
5.32%, due 01/02/97 $1,000,000 $ 999,852
American Express Co.,
5.38%, due 01/29/97 50,000 49,791
CIT Group Holdings Inc.,
5.33%, due 01/06/97 75,000 74,945
CIT Group Holdings Inc.,
5.35%, due 02/25/97 250,000 247,957
General Electric Co.,
5.31%, due 01/13/97 100,000 99,820
General Electric Co.,
5.32%, due 01/16/97 100,000 99,771
General Electric Co.,
5.50%, due 01/27/97 150,000 149,404
Weyerhaeuser Co.,
5.90%, due 01/07/97 300,000 299,705
----------------
TOTAL COMMERCIAL PAPER
(COST $2,021,255) $ 2,021,245
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $39,443,119) 98.4% $ 39,411,502
OTHER ASSETS LESS LIABILITIES -- 1.6% 633,751
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 40,045,253
===============================================================
The aggregate cost of securities for federal income tax purpose at
December 31, 1996 is $39,443,119.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 274,347
Aggregate gross unrealized depreciation (305,964)
----------------
Net unrealized depreciation $ (31,617)
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
F-6
<PAGE> 57
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 56.0%
- -------------------------------------------------------------------------
Aetna Services Inc.,
7.625%, due 08/15/26 $ 1,000,000 $ 1,008,680
Allegiance Corp.,
7.800%, due 10/15/16 1,000,000 1,005,550
Apache Corp.,
7.700%, due 03/15/26 1,000,000 1,018,120
Boeing Co.,
8.625%, due 11/15/31 1,000,000 1,174,230
British Columbia, Province of,
7.250%, due 09/01/36 1,000,000 1,015,650
Capita Equipment Receivable
Trust 1996-1,
6.570%, due 03/15/01 1,000,000 1,001,820
Chase Manhattan Corp.,
6.750%, due 08/15/08 1,000,000 967,500
Columbia/HCA Healthcare Corp.,
7.690%, due 06/15/25 1,000,000 1,026,250
Commonwealth Edison Co.,
7.000%, due 07/01/05 1,000,000 981,930
Crown Cork and Seal Co. Inc.,
7.375%, due 12/15/26 1,000,000 980,660
Dow Capital BV,
9.200%, due 06/01/10 2,000,000 2,314,580
General Electric Capital Corp.,
8.300%, due 09/20/09 2,000,000 2,252,200
General Motors Corp.,
7.000%, due 06/15/03 1,000,000 1,007,680
GTE South Corp.,
7.500%, due 03/15/26 1,000,000 988,360
Hydro-Quebec,
8.500%, due 12/01/29 1,000,000 1,109,440
International Bank for
Reconstruction & Development,
8.875%, due 03/01/26 1,000,000 1,216,430
James River Corp.,
7.750%, due 11/15/23 1,000,000 987,090
Laidlaw Inc.,
7.875%, due 04/15/05 1,000,000 1,045,520
Legrand SA,
8.500%, due 02/15/25 1,000,000 1,117,350
Lockheed Martin Corp.,
7.650%, due 05/01/16 1,000,000 1,026,010
Millennium America Co.,
7.625%, due 11/15/26 1,000,000 974,280
National City Bank of Cleveland,
7.250%, due 07/15/10 1,000,000 1,008,250
Philip Morris Companies Inc.,
7.250%, due 09/15/01 1,000,000 1,015,610
Procter & Gamble Corp.,
6.450%, due 01/15/26 1,000,000 906,740
Provident Bank of Cincinnati,
6.375%, due 01/15/04 1,000,000 957,580
Rohm & Haas Co.,
9.500%, due 04/01/21 1,000,000 1,132,620
Seagram (J.E.) & Sons Inc.,
9.650%, due 08/15/18 1,000,000 1,239,390
Smurfit Capital Funding PLC,
7.500%, due 11/20/25 1,000,000 974,560
Swiss Bank Corp.,
7.750%, due 09/01/26 2,000,000 2,066,700
Texaco Capital, Inc.,
9.750%, due 03/15/20 $ 1,000,000 $ 1,267,350
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $33,770,244) $ 34,788,130
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
6.850%, due 01/15/22 $ 1,000,000 $ 994,890
Federal Home Loan Mortgage Corp.,
5.450%, due 01/17/97 350,000 349,152
Federal National Mortgage Assn.,
5.430%, due 01/17/97 900,000 897,828
Federal National Mortgage Assn.,
REMIC, Trust 92-198,
7.500%, due 09/25/22 2,000,000 2,039,480
Student Loan Marketing Assn.,
5.950%, due 07/27/09 1,000,000 1,002,695
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $5,006,199) $ 5,284,045
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 33.3%
- -------------------------------------------------------------------------
U.S. Treasury Notes,
6.250%, due 10/31/01 $ 500,000 $ 500,310
U.S. Treasury Notes,
6.500%, due 10/15/06 500,000 502,811
U.S. Treasury Notes,
6.875%, due 08/15/25 1,500,000 1,528,590
U.S. Treasury Notes,
7.625%, due 02/15/25 9,500,000 10,547,945
U.S. Treasury Notes,
7.750%, due 12/31/99 500,000 522,810
U.S. Treasury Notes,
7.875%, due 02/15/21 2,500,000 2,824,200
U.S. Treasury Notes,
8.750%, due 08/15/20 1,000,000 1,231,250
U.S. Treasury Strip,
0.000%, due 05/18/18 12,900,000 2,990,220
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $20,384,869) $ 20,648,136
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 0.4%
- -------------------------------------------------------------------------
Household International Corp.,
5.45%, due 01/14/97
(COST $249,508) $ 250,000 $ 249,508
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $59,410,820) 98.2% $ 60,969,819
OTHER ASSETS LESS LIABILITIES -- 1.8% 1,128,998
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 62,098,817
===============================================================
The aggregate cost of securities for federal income tax purposes at
December 31, 1996 is $59,410,820.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 2,159,082
Aggregate gross unrealized depreciation (600,083)
----------------
Net unrealized appreciation $ 1,558,999
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
F-7
<PAGE> 58
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCK -- 72.8%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 1.0%
Boeing Co. 300 $ 31,913
----------------
AIR TRANSPORTATION -- 3.4%
AMR Corp.* 400 35,250
Delta Airlines Inc. 600 42,525
UAL Corp.* 600 37,500
----------------
115,275
----------------
AUTOMOBILES -- 1.3%
Chrysler Corp. 400 13,200
Ford Motor Co. 400 12,750
General Motors Corp. 300 16,725
----------------
42,675
----------------
BANKS/MAJOR -- 2.6%
BankAmerica Corp. 600 59,850
Chase Manhattan Corp. 300 26,775
----------------
86,625
----------------
BANKS/REGIONAL -- 2.8%
Banc One Corp. 600 25,800
Citicorp 400 41,200
Wells Fargo & Co. 100 26,975
----------------
93,975
----------------
BIO-TECHNOLOGIES -- 1.0%
Amgen Inc.* 600 32,625
----------------
CHEMICALS -- 2.7%
du Pont (E.I.) de Nemours & Co. 300 28,313
Hercules, Inc. 500 21,625
Monsanto, Co. 1,000 38,875
----------------
88,813
----------------
COSMETICS -- .9%
Gillette Co. 400 31,100
----------------
DRUGS -- 6.2%
Bristol Myers Squibb Co. 300 32,625
Lilly (Eli) & Co. 400 29,200
Merck & Co., Inc. 300 23,775
Pfizer Inc. 400 33,150
Schering-Plough Corp. 200 12,950
Smithkline Beecham, PLC, ADR+ 500 34,000
Warner-Lambert Co. 600 45,000
----------------
210,700
----------------
ELECTRICAL EQUIPMENT -- 3.5%
Emerson Electric Co. 500 48,375
General Electric Co. 700 69,213
----------------
117,588
----------------
ELECTRONICS -- 4.5%
AMP, Inc. 800 30,700
Applied Materials, Inc.* 400 14,375
Hewlett-Packard Co. 500 25,125
Intel Corp. 300 39,281
Motorola, Inc. 200 12,275
Texas Instruments, Inc. 500 31,875
----------------
153,631
----------------
ENTERTAINMENT -- 1.9%
Disney (Walt) Company 400 $ 27,850
Time Warner, Inc. 500 18,750
Viacom, Inc.* Class (B) 500 17,438
----------------
64,038
----------------
FINANCIAL SERVICES -- 1.8%
Federal Home Loan Mortgage Corp. 300 33,038
Federal National Mortgage Assn. 700 26,075
----------------
59,113
----------------
HOSPITAL MANAGEMENT -- 2.7%
Aetna Inc. 300 24,000
Columbia/HCA Healthcare Corp. 750 30,563
Oxford Health Plans, Inc.* 400 23,425
United Healthcare Corp. 300 13,500
----------------
91,488
----------------
HOSPITAL SUPPLIES -- 1.2%
Johnson & Johnson 800 39,800
----------------
INSURANCE -- 2.2%
American International Group,
Inc. 400 43,300
General Re Corp. 200 31,550
----------------
74,850
----------------
MACHINERY -- 3.6%
Case Corp. 500 27,250
Caterpillar, Inc. 300 22,575
Deere & Co. 900 36,563
Ingersoll-Rand Co. 800 35,600
----------------
121,988
----------------
MACHINERY & CONSTRUCTION -- .6%
Fluor, Corp. 300 18,825
----------------
METALS -- .7%
Aluminum Company of America 400 25,500
----------------
OFFICE & BUSINESS EQUIPMENT -- 5.7%
Compaq Computer Corp.* 500 37,125
Electronics Data Systems Corp. 400 17,300
International Business Machines
Corp. 300 45,300
Micron Technology, Inc. 500 14,563
Microsoft Corp.* 400 33,050
Oracle Corp.* 600 25,050
Sun Microsystems Inc.* 800 20,550
----------------
192,938
----------------
OIL -- DOMESTIC -- 2.5%
Amoco Corp. 300 24,150
Anadarko Pete Co. 300 19,425
Atlantic Richfield Co. 200 26,500
Burlington Resources 300 15,113
----------------
85,188
----------------
OIL -- INTERNATIONAL -- 5.1%
British Petroleum, PLC, ADR+ 208 29,406
Chevron Corp. 400 26,000
Exxon Corp. 300 29,400
Mobil Corp. 200 24,450
Royal Dutch Petroleum Co. 200 34,150
Texaco, Inc. 300 29,438
----------------
172,844
----------------
</TABLE>
See notes to financial statements.
F-8
<PAGE> 59
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- SERVICES -- 5.4%
Baker Hughes Inc. 800 $ 27,600
Energy Ventures, Inc. 1,500 76,313
Schlumberger Limited 300 29,963
Trico Marine Services, Inc. 1,000 48,000
----------------
181,876
----------------
PAPER -- 1.0%
Fort Howard Corp.* 600 16,612
International Paper Co. 400 16,150
----------------
32,762
----------------
RESTAURANTS -- .6%
McDonald's Corp. 500 22,625
----------------
RETAILERS -- 2.3%
Gap (The), Inc. 800 24,100
Nautica Enterprises, Inc.* 1,200 30,300
Tommy Hilfiger Corp.* 500 24,000
----------------
78,400
----------------
SOAPS -- .9%
Procter & Gamble Inc. 300 32,250
----------------
TELECOMMUNICATIONS -- 3.7%
Cabletron Systems, Inc.* 600 19,950
Cisco Systems, Inc.* 600 38,175
Octel Communications Corp.* 500 8,750
Teleport Communications Group,
Class(A) 600 18,300
Worldcom, Inc.* 1,600 41,699
----------------
126,874
----------------
TOBACCO -- 1.0%
Philip Morris Cos., Inc. 300 33,781
----------------
TOTAL COMMON STOCKS
(COST $1,658,938) $ 2,460,060
- --------------------------------------------------------------------------
COMMERCIAL PAPER -- 10.4%
- ---------------------------------------------------------------
American Express Company,
5.33%, due 01/09/97 $300,000 $ 299,645
CIT Group Holdings Inc.,
5.33%, due 01/06/97 50,000 49,963
----------------
TOTAL COMMERCIAL PAPER
(COST $349,608) $ 349,608
- --------------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 15.6%
- ---------------------------------------------------------------
U.S. Treasury Note,
7.50%, due 05/15/02
(COST $518,404) $500,000 $ 528,750
- --------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,526,950) 98.8% $ 3,338,418
OTHER ASSETS LESS LIABILITIES -- 1.2% 42,169
- --------------------------------------------------------------------------
NET ASSETS 100.0% $ 3,380,587
===============================================================
The aggregate cost of securities for Federal income tax purposes at
December 31, 1996, is $2,534,288.
The following amounts are based on costs for Federal income tax
purposes:
Aggregate gross unrealized appreciation $ 817,280
Aggregate gross unrealized depreciation (13,150)
----------------
Net unrealized appreciation $ 804,130
=========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ American Depository Receipts.
Percentages are based on net assets.
F-9
<PAGE> 60
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 36.8%
- ---------------------------------------------------------------
U.S. Treasury Note,
5.375%, due 11/30/97 $2,000,000 $ 1,990,000
U.S. Treasury Note,
6.00%, due 05/31/98 1,000,000 1,000,620
U.S. Treasury Note,
6.00%, due 08/15/99 1,000,000 999,680
U.S. Treasury Note,
5.875%, due 11/15/99 1,000,000 995,930
U.S. Treasury Note,
7.75%, due 11/30/99 1,000,000 1,044,370
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $6,001,853) $ 6,030,600
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 62.1%
- -------------------------------------------------------------------------
Federal Farm Credit Union,
5.63%, due 05/26/98 $2,000,000 $ 1,995,100
Federal Home Loan Mortgage Corp.,
5.25%, due 01/03/97 120,000 119,965
Federal Home Loan Mortgage Corp.,
5.35%, due 01/06/97 300,000 299,777
Federal Home Loan Mortgage Corp.,
5.42%, due 01/06/97 100,000 99,925
Federal Home Loan Mortgage Corp.,
5.45%, due 01/24/97 450,000 448,433
Federal Home Loan Mortgage Corp.,
6.50%, due 11/15/21 1,500,000 1,457,175
Federal National Mortgage Assn.,
5.24%, due 01/03/97 150,000 149,956
Federal National Mortgage Assn.,
5.34%, due 03/21/97 500,000 494,141
Federal National Mortgage Assn.,
7.00%, due 01/25/03 200,000 201,758
Federal National Mortgage Assn.,
7.00%, due 01/25/03 $ 85,000 $ 85,748
Federal National Mortgage Assn.,
5.25%, due 09/25/12 798,230 794,071
Federal National Mortgage Assn.,
5.75%, due 08/25/18 500,000 489,025
Federal National Mortgage Assn.,
6.50%, due 10/25/23 1,300,000 1,287,858
Government National Mortgage
Assn.,
7.50%, due 05/15/24 997,749 998,367
Government National Mortgage
Assn.,
7.50%, due 10/15/24 262,959 263,122
Student Loan Marketing Assn.,
7.44%, due 03/28/00 500,000 500,035
Tennessee Valley Authority,
6.375%, due 06/15/05 500,000 490,565
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $10,187,163) $ 10,175,021
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $16,189,016) 98.9% $ 16,205,621
OTHER ASSETS LESS LIABILITIES -- 1.1% 177,679
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 16,383,300
===============================================================
The aggregate cost of securities for federal income tax purposes at
December 31, 1996 is $16,189,016.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 95,823
Aggregate gross unrealized depreciation (79,218)
----------------
Net unrealized appreciation $ 16,605
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
F-10
<PAGE> 61
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMERCIAL PAPER -- 98.5%
- ---------------------------------------------------------------
Associates Corp. of North
America,
5.31%, due 01/06/97 $4,000,000 $ 3,997,050
Avco Financial Services, Canada
Ltd.,
5.41%, due 03/13/97 4,000,000 3,957,321
Avco Financial Services Inc.,
5.32%, due 01/23/97 1,775,000 1,769,229
Banc One Funding Corp.,
5.46%, due 01/06/97 1,050,000 1,049,204
Banco Real S.A.,
5.36%, due 04/21/97 1,000,000 983,623
Bank of New York Co., Inc.,
5.30%, due 01/10/97 2,500,000 2,496,687
Bank of Nova Scotia,
5.50%, due 01/03/97 5,000,000 5,070,278
Bell Atlantic Network Funding
Corp.,
5.40%, due 01/24/97 1,413,000 1,408,125
Capital One Funding Corp.,
5.84%, due 04/01/11 (a) 3,900,000 3,903,734
C.I.T. Group Holdings, Inc.,
5.30%, due 01/27/97 1,800,000 1,793,110
C.I.T. Group Holdings, Inc.,
5.48%, due 01/31/97 1,875,000 1,866,438
C.I.T. Group Holdings, Inc.,
5.35%, due 02/25/97 1,350,000 1,338,966
Colonial Pipeline Co.,
5.30%, due 01/10/97 2,500,000 2,496,688
Commercial Credit Co.,
5.30%, due 01/06/97 6,300,000 6,295,363
Cooperative Finance Corp.,
5.30%, due 01/10/97 450,000 449,404
du Pont (E.I.) de Nemours & Co.,
5.30%, due 01/21/97 1,550,000 1,545,436
Ford Motor Credit Co.,
5.30%, due 01/08/97 2,050,000 2,047,887
Ford Motor Credit Co.,
5.29%, due 02/03/97 1,880,000 1,870,884
Ford Motor Credit Co.,
5.32%, due 02/03/97 1,000,000 995,124
General Electric Capital Corp.,
5.41%, due 01/09/97 1,000,000 998,798
General Electric Capital Corp.,
5.31%, due 01/13/97 300,000 299,469
General Electric Capital Corp.,
5.40%, due 01/23/97 650,000 647,855
General Electric Capital Corp.,
5.50%, due 01/27/97 100,000 99,603
General Electric Capital Corp.,
5.32%, due 01/28/97 2,720,000 2,709,147
General Motors Corp.,
5.36%, due 01/24/97 5,000,000 4,982,878
Goldman Sachs Group, L.P.,
5.37%, due 01/14/97 $3,400,000 $ 3,393,407
Goldman Sachs Group, L.P.,
5.32%, due 04/21/97 2,500,000 2,459,362
Heller International,
5.70%, due 01/15/97 2,150,000 2,145,234
Heller International,
5.70%, due 01/21/97 4,800,000 4,784,800
Household Finance Corp.,
5.45%, due 01/14/97 1,900,000 1,896,261
Household Finance Corp.,
5.31%, due 01/17/97 1,450,000 1,446,578
Lucent Technologies Inc.,
5.28%, due 01/28/97 2,000,000 1,992,080
Lucent Technologies Inc.,
5.29%, due 01/28/97 3,000,000 2,988,098
Mellon Bank Corp.,
5.40%, due 02/07/97 2,000,000 2,024,900
Merrill Lynch and Co., Inc.,
5.34%, due 01/27/97 1,150,000 1,145,565
Metropolitan Life Funding Inc.,
5.29%, due 01/10/97 4,642,000 4,635,861
Morgan, J.P. & Co., Inc.,
5.35%, due 01/02/97 3,400,000 3,399,495
Morgan, J.P. & Co., Inc.,
5.36%, due 01/02/97 2,375,000 2,374,646
National Westminster Bank Canada,
5.45%, due 02/28/97 3,000,000 2,973,659
Norwest Corp.,
5.40%, due 01/09/97 4,350,000 4,344,780
Paccar Financial Group,
5.44%, due 01/03/97 1,000,000 999,698
Penney, (J.C.) & Co.,
5.30%, due 01/30/97 3,600,000 3,584,630
PHH Corp.,
5.68%, due 01/17/97 6,200,000 6,184,348
Philip Morris Co.,
5.30%, due 01/13/97 4,500,000 4,492,050
Philip Morris Co.,
5.30%, due 01/14/97 1,500,000 1,497,129
Prudential Funding Corp.,
5.39%, due 01/07/97 5,400,000 5,395,149
Sanwa Business Credit,
5.58%, due 01/15/97 3,800,000 3,791,754
Sears Roebuck Acceptance Corp.,
5.58%, due 01/10/97 1,275,000 1,273,221
Sears Roebuck Acceptance Corp.,
5.33%, due 01/30/97 4,000,000 3,982,826
Sears Roebuck Acceptance Corp.,
5.34%, due 02/06/97 330,000 328,238
Toronto Dominion Bank,
5.40%, due 01/09/97 2,200,000 2,197,360
</TABLE>
See notes to financial statements.
F-11
<PAGE> 62
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1996
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Toronto Dominion Bank,
5.47%, due 01/13/97 $ 2,900,000 $ 2,894,712
Transamerica Commercial Finance
Canada,
5.33%, due 01/13/97 2,000,000 1,996,447
Walt Disney Co.,
5.31%, due 02/14/97 3,000,000 2,980,530
Weyerhaeuser Mortgage Co.,
5.90%, due 01/07/97 850,000 849,164
Weyerhaeuser Mortgage Co.,
5.40%, due 01/16/97 3,300,000 3,292,575
----------------
TOTAL COMMERCIAL PAPER
(COST $142,816,858) $ 142,816,858
- ------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.2%
- ------------------------------------------------------------------------
Federal Home Loan Bank,
5.45%, due 01/24/97 $ 170,000 $ 169,408
Federal Home Loan Bank,
5.85%, due 11/06/97 3,000,000 3,026,926
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $3,196,334) $ 3,196,334
- ------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $146,013,192) 100.7% $ 146,013,192
OTHER ASSETS LESS LIABILITIES -- (.7%) (1,081,033)
- ------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 144,932,159
===============================================================
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
(a) The interest rate is subject to change periodically based on the greater of
the 30 or 90-day commercial paper rate. This instrument resets on a weekly
basis. The rate shown was in effect as of December 26, 1996.
Percentages are based on net assets.
F-12
<PAGE> 63
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
EQUITY GROWTH EQUITY INCOME TERM BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Securities, at value (Note 2)*..................... $ 2,139,517 $18,636,175 $ 39,411,502 $ 60,969,819
Cash............................................... 25,749 52,514 66,137 74,215
Dividends receivable............................... 1,820 38,254 0 0
Interest receivable................................ 0 0 579,794 1,103,274
Receivable for fund shares sold.................... 5 5 29,200 17,612
Prepaid expense.................................... 222 1,561 2,541 3,805
------------- ------------- ------------- -------------
Total assets........................................... 2,167,313 18,728,509 40,089,174 62,168,725
------------- ------------- ------------- -------------
LIABILITIES
Payable for fund shares redeemed................... 26 20,521 12,482 26,463
Payable for securities purchased................... 0 114,125 0 0
Accrued expenses:
Investment advisory fees...................... 773 6,596 14,053 22,039
Custodian fees................................ 817 1,147 1,035 2,438
Professional fees............................. 10,946 13,138 15,157 17,134
Miscellaneous fees............................ 82 635 1,194 1,834
------------- ------------- ------------- -------------
Total liabilities...................................... 12,644 156,162 43,921 69,908
------------- ------------- ------------- -------------
NET ASSETS............................................. $ 2,154,669 $18,572,347 $ 40,045,253 $ 62,098,817
============= ============= ============ ============
Net assets consist of:
Capital stock -- $.01 par value.................... $ 710 $ 7,922 $ 36,554 $ 48,366
Additional paid-in capital......................... 1,364,350 10,948,547 37,856,381 56,915,623
Undistributed net investment income................ 12,501 500,290 2,284,209 3,837,045
Undistributed/accumulated net realized gain (loss)
on
investments................................... 183,845 1,756,375 (100,274) (261,216)
Net unrealized appreciation (depreciation) of
investments...................................... 593,263 5,359,213 (31,617) 1,558,999
------------- ------------- ------------- -------------
NET ASSETS............................................. $ 2,154,669 $18,572,347 $ 40,045,253 $ 62,098,817
============= ============= ============ ============
Shares of capital stock outstanding.................... 70,950 792,193 3,655,407 4,836,582
------------- ------------- ------------- -------------
Net asset value per share of outstanding capital
stock................................................ $ 30.37 $ 23.44 $ 10.96 $ 12.84
============= ============= ============ ============
*Investments at cost................................... $ 1,546,254 $13,276,962 $ 39,443,119 $ 59,410,820
<CAPTION>
GOVERNMENT
DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------
<S> <C<C> <C> <C>
ASSETS
Securities, at value (Note 2)*..................... $ 3,338,418 $ 16,205,621 $146,013,192
Cash............................................... 48,898 71,837 60,320
Dividends receivable............................... 2,366 0 0
Interest receivable................................ 4,794 109,680 15,356
Receivable for fund shares sold.................... 0 20,052 1,199,819
Prepaid expense.................................... 239 367 6,025
------------- ------------- ------------
Total assets........................................... 3,394,715 16,407,557 147,294,712
------------- ------------- ------------
LIABILITIES
Payable for fund shares redeemed................... 59 5,735 2,284,673
Payable for securities purchased................... 0 0 0
Accrued expenses:
Investment advisory fees...................... 1,197 5,568 50,749
Custodian fees................................ 660 1,493 2,933
Professional fees............................. 12,105 11,145 20,816
Miscellaneous fees............................ 107 316 3,382
------------- ------------- ------------
Total liabilities...................................... 14,128 24,257 2,362,553
------------- ------------- ------------
NET ASSETS............................................. $ 3,380,587 $ 16,383,300 $144,932,159
========== ============ =============
Net assets consist of:
Capital stock -- $.01 par value.................... $ 1,879 $ 15,492 $ 1,449,322
Additional paid-in capital......................... 2,310,863 15,665,486 143,482,837
Undistributed net investment income................ 67,363 695,233 0
Undistributed/accumulated net realized gain (loss)
on
investments................................... 189,014 (9,516) 0
Net unrealized appreciation (depreciation) of
investments...................................... 811,468 16,605 0
------------- ------------- ------------
NET ASSETS............................................. $ 3,380,587 $ 16,383,300 $144,932,159
========== ============ =============
Shares of capital stock outstanding.................... 187,922 1,549,168 144,932,159
------------- ------------- ------------
Net asset value per share of outstanding capital
stock................................................ $ 17.99 $ 10.58 $ 1.00
========== ============ =============
*Investments at cost................................... $ 2,526,950 $ 16,189,016 $146,013,192
</TABLE>
See notes to financial statements
F-13
<PAGE> 64
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the year ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT
EQUITY GROWTH EQUITY INCOME TERM BOND BOND DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest......... $ 7,458 $ 39,555 $ 2,466,764 $ 4,112,161 $ 56,639 $ 760,040 $6,434,175
Dividends........ 27,521 564,718 0 0 38,701 0 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Total
investment
income.... 34,979 604,273 2,466,764 4,112,161 95,340 760,040 6,434,175
------------- ------------- ------------ ----------- ----------- ---------- ------------
EXPENSES:
Investment
advisory fees
(Note 3)....... 8,064 72,917 155,967 240,048 13,426 49,987 473,307
Custodian fees... 7,514 11,203 6,991 8,274 7,558 8,543 13,806
Professional
fees........... 8,123 8,967 10,019 11,111 8,198 5,878 13,669
Directors fees... 357 3,341 7,062 10,922 623 1,844 19,972
Miscellaneous
fees........... 318 3,095 4,884 7,535 540 1,579 13,732
------------- ------------- ------------ ----------- ----------- ---------- ------------
Total
expenses... 24,376 99,523 184,923 277,890 30,345 67,831 534,486
Expenses
reduced by
a
custodian
fee
arrangement... (1,898) (1,896) (2,368) (2,774) (2,368) (3,024) (5,896)
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net
expenses... 22,478 97,627 182,555 275,116 27,977 64,807 528,590
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net investment
income.............. 12,501 506,646 2,284,209 3,837,045 67,363 695,233 5,905,585
------------- ------------- ------------ ----------- ----------- ---------- ------------
REALIZED AND
UNREALIZED GAIN
(LOSS) ON
INVESTMENTS (NOTE
2):
Realized gain
(loss) from
security
transactions
(excluding
short-term
securities):
Proceeds
from
sales..... 811,804 6,869,438 11,002,173 34,147,073 1,005,797 1,235,548 0
Cost of
securities
sold...... 625,294 5,125,323 11,068,379 33,541,115 812,270 1,245,064 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net realized gain
(loss) on
investments......... 186,510 1,744,115 (66,206) 605,958 193,527 (9,516) 0
Net increase
(decrease) in
unrealized
appreciation of
investments......... 183,439 1,057,847 (844,291) (4,731,783) 188,333 (170,310) 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net realized and
unrealized gain
(loss) on
investments......... 369,949 2,801,962 (910,497) (4,125,825) 381,860 (179,826) 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net increase
(decrease) in net
assets resulting
from operations..... $ 382,450 $ 3,308,608 $ 1,373,712 $ (288,780) $ 449,223 $ 515,407 $5,905,585
========== ========== ========== ========== ======== ========= ===========
</TABLE>
See notes to financial statements
F-14
<PAGE> 65
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO
----------------------- -------------------------
1996 1995 1996 1995
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 12,501 $ 26,883 $ 506,646 $ 608,220
Net realized gain (loss) on investments (Note 2)............... 186,510 93,732 1,744,115 365,016
Net increase (decrease) in unrealized appreciation of
investments.................................................. 183,439 349,191 1,057,847 3,968,525
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.... 382,450 469,806 3,308,608 4,941,761
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)................................. 0 (26,948) (34,413) (567,903)
Net realized gain from investment transactions (Note 4)........ 0 (93,732) 0 (365,016)
Distribution in excess of realized capital gains (Note 4)...... 0 (2,611) 0 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders.......... 0 (123,291) (34,413) (932,919)
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares........................... 344,553 348,609 427,851 489,847
Proceeds from dividends reinvested............................. 0 123,291 34,413 932,919
Net asset value of shares redeemed............................. (445,903) (501,382) (3,255,147) (3,545,498)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions..................................................... (101,350) (29,482) (2,792,883) (2,122,732)
---------- ---------- ----------- -----------
Net increase in net assets......................................... 281,100 317,033 481,312 1,886,110
Net assets beginning of year....................................... 1,873,569 1,556,536 18,091,035 16,204,925
---------- ---------- ----------- -----------
Net assets end of year*............................................ $2,154,669 $1,873,569 $18,572,347 $18,091,035
========= ========= ========== ==========
SHARES ISSUED AND REDEEMED:
Issued......................................................... 12,546 14,901 20,290 26,583
Issued in reinvestment of dividends and distributions.......... 0 4,910 1,654 47,574
Redeemed....................................................... (16,217) (20,796) (152,508) (195,103)
---------- ---------- ----------- -----------
Net increase (decrease).................................... (3,671) (985) (130,564) (120,946)
========= ========= ========== ==========
*Including undistributed net investment income of: $ 12,501 $ 0 $ 500,290 $ 28,990
<CAPTION>
INTERMEDIATE TERM
BOND PORTFOLIO LONG TERM BOND PORTFOLIO
------------------------- ---------------------------
1996 1995 1996 1995
----------- ----------- ------------ ------------
<S> <<C> <C> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 2,284,209 $ 2,091,037 $ 3,837,045 $ 3,342,469
Net realized gain (loss) on investments (Note 2)............... (66,206) (343) 605,958 1,020,813
Net increase (decrease) in unrealized appreciation of
investments.................................................. (844,291) 2,636,279 (4,731,783) 8,936,819
----------- ----------- ------------ ------------
Net increase (decrease) in net assets resulting from operations.... 1,373,712 4,726,973 (288,780) 13,300,101
----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)................................. 0 (2,091,037) 0 (3,342,469)
Net realized gain from investment transactions (Note 4)........ 0 0 0 0
Distribution in excess of realized capital gains (Note 4)...... 0 0 0 0
----------- ----------- ------------ ------------
Total dividends and distributions to shareholders.......... 0 (2,091,037) 0 (3,342,469)
----------- ----------- ------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares........................... 11,119,965 9,732,637 20,808,063 18,197,721
Proceeds from dividends reinvested............................. 0 2,091,037 0 3,342,469
Net asset value of shares redeemed............................. (9,968,257) (9,223,470) (20,438,355) (13,492,262)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets resulting from share
transactions..................................................... 1,151,708 2,600,204 369,708 8,047,928
----------- ----------- ------------ ------------
Net increase in net assets......................................... 2,525,420 5,236,140 80,928 18,005,560
Net assets beginning of year....................................... 37,519,833 32,283,693 62,017,889 44,012,329
----------- ----------- ------------ ------------
Net assets end of year*............................................ $40,045,253 $37,519,833 $ 62,098,817 $ 62,017,889
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued......................................................... 1,048,172 910,082 1,693,456 1,481,319
Issued in reinvestment of dividends and distributions.......... 0 197,828 0 259,508
Redeemed....................................................... (941,251) (871,850) (1,670,244) (1,131,582)
----------- ----------- ------------ ------------
Net increase (decrease).................................... 106,921 236,060 23,212 609,245
========== ========== =========== ===========
*Including undistributed net investment income of: $ 2,284,209 $ 0 $ 3,837,045 $ 0
</TABLE>
See notes to financial statements
F-15
<PAGE> 66
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued) For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO MONEY MARKET PORTFOLIO
----------------------- ------------------------- -----------------------------
1996 1995 1996 1995 1996 1995
---------- ---------- ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income.................... $ 67,363 $ 83,934 $ 695,233 $ 269,443 $ 5,905,585 $ 4,435,105
Net realized gain (loss) on investments
(Note 2)............................... 193,527 84,634 (9,516) 163 0 0
Net increase (decrease) in unrealized
appreciation of investments............ 188,333 557,722 (170,310) 189,162 0 0
---------- ---------- ----------- ----------- ------------- -------------
Net increase in net assets resulting from
operations................................. 449,223 726,290 515,407 458,768 5,905,585 4,435,105
---------- ---------- ----------- ----------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income (Note 4)........... 0 (83,934) 0 (269,443) (5,905,585) (4,435,105)
Net realized gain from investment
transactions........................... 0 (84,634) 0 (163) 0 0
Distribution in excess of realized
capital gains.......................... 0 (4,489) 0 0 0 0
---------- ---------- ----------- ----------- ------------- -------------
Total dividends and distributions to
shareholders...................... 0 (173,057) 0 (269,606) (5,905,585) (4,435,105)
---------- ---------- ----------- ----------- ------------- -------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares..... 329,611 255,820 12,146,445 9,796,475 689,151,108 466,424,179
Proceeds from dividends reinvested....... 0 173,057 0 269,606 5,905,585 4,435,105
Net asset value of shares redeemed....... (670,322) (570,735) (4,834,445) (2,903,581) (660,491,512) (443,845,037)
---------- ---------- ----------- ----------- ------------- -------------
Net increase (decrease) in net assets
resulting from share transactions.......... (340,711) (141,858) 7,312,000 7,162,500 34,565,181 27,014,247
---------- ---------- ----------- ----------- ------------- -------------
Net increase in net assets................... 108,512 411,375 7,827,407 7,351,662 34,565,181 27,014,247
Net assets beginning of year................. 3,272,075 2,860,700 8,555,893 1,204,231 110,366,978 83,352,731
---------- ---------- ----------- ----------- ------------- -------------
Net assets end of year*...................... $3,380,587 $3,272,075 $16,383,300 $ 8,555,893 $ 144,932,159 $ 110,366,978
========== ========== ============ ============ ============== ==============
SHARES ISSUED AND REDEEMED:
Issued................................... 19,825 16,862 1,180,708 966,948 689,151,108 466,424,179
Issued in reinvestment of dividends and
distributions.......................... 0 11,009 0 26,406 5,905,585 4,435,105
Redeemed................................. (40,085) (37,322) (469,910) (281,625) (660,491,512) (443,845,037)
---------- ---------- ----------- ----------- ------------- -------------
Net increase (decrease)............. (20,260) (9,451) 710,798 711,729 34,565,181 27,014,247
========== ========== ============ ============ ============== ==============
*Including undistributed net investment
income of: $ 67,363 $ 0 $ 695,233 $ 0 $ 0 $ 0
</TABLE>
See notes to financial statements
F-16
<PAGE> 67
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.
F-17
<PAGE> 68
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Other:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
Earnings credits received from the custodian are shown as a reduction of
total expenses.
3. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
Under an investment advisory agreement between the Fund and MONY Life
Insurance Company of America ("Investment Adviser" or "MONY America"), a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"), the Investment Adviser provides investment advice and related services
for each of the Fund's portfolios, administers the overall day-to-day affairs of
the Fund, bears all expenses associated with calculating net asset values of the
portfolios and compensates the directors, officers and employees of the Fund who
are affiliated with the Investment Adviser.
For these services, the Investment Adviser receives an investment
management fee. The fee is a daily charge equal to an annual rate of .40% of the
first $400,000,000 of the aggregate average daily net assets of the portfolios,
.35% of the next $400,000,000 of the aggregate average daily net assets of the
portfolios and .30% of the aggregate average daily net assets of the portfolios
in excess of $800,000,000. Each daily charge is divided among the portfolios in
proportion to their net assets on that date. The Investment Adviser reimburses
the portfolios for investment management fees charged to the extent that any
portfolio's aggregate ordinary operating expenses (excluding interest, taxes,
brokerage fees and commissions, and extraordinary expenses) exceed in any fiscal
year 2.5% of the first $30,000,000 of the average daily net assets of such
portfolio, 2.0% of the next $70,000,000 of the average daily net assets of such
portfolio, and 1.5% of the average daily net assets of the portfolio in excess
of $100,000,000. For the year ended December 31, 1996, the fees incurred by the
Fund were $1,013,716.
The Investment Adviser has a service agreement with MONY to provide it with
personnel, services, facilities, supplies and equipment in order to carry out
its duties to provide investment management services under the Investment
Advisory Agreement. The Investment Adviser pays MONY for its services.
Aggregate remuneration incurred to non-affiliated Directors of the Fund for
the year ended December 31, 1996, amounted to $44,121.
4. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Dividends from net investment income (including realized gains and losses
on portfolio securities) of the Money Market Portfolio are declared and
reinvested each business day in additional full and fractional shares of the
portfolio. This policy enables the Money Market Portfolio to maintain a net
asset value of $1.00 per share.
Dividends from net investment income and net realized capital gains of the
other portfolios will normally be declared and reinvested annually in additional
full and fractional shares.
Dividends from net investment income and distributions from net realized
capital gains are determined in accordance with U.S. federal income tax
regulations which may differ from generally accepted accounting principles.
During the year ended December 31, 1996, the Equity Income Portfolio
increased undistributed realized gains by $12,784, decreased undistributed net
investment income by $933 and decreased additional paid-in capital by $11,851.
Those differences are primarily due to return of capital distributions received
on investments.
F-18
<PAGE> 69
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL STOCK
A. Authorized Capital Stock:
The Fund has 2 billion authorized shares of capital stock with a par value
of $.01 per share. 1.15 billion shares are reserved for issuance and divided
into seven classes as follows: Equity Growth Portfolio (150 million shares);
Equity Income Portfolio (150 million shares); Intermediate Term Bond Portfolio
(150 million shares); Long Term Bond Portfolio (150 million shares); Diversified
Portfolio (150 million shares); Government Securities Portfolio (150 million
shares); and Money Market Portfolio (250 million shares). The remaining shares
may be issued to any new or existing class upon approval of the Board of
Directors.
B. Purchases of Fund Shares:
Shares of the Fund are sold to MONY America and MONY for allocation to MONY
America Variable Account L and MONY Variable Account L to fund benefits under
Flexible Premium Variable Life Insurance Contracts and Variable Universal Life
Insurance Contracts; to MONY America Variable Account S and MONY Variable
Account S to fund benefits under Variable Life Insurance with Additional Premium
Option Contracts; and to MONY America Variable Account A and MONY Variable
Account A, to fund benefits under Flexible Payment Variable Annuity Contracts
issued by those companies. Shares of the Fund are also sold to MONY for
allocation to the Keynote Series Account ("Keynote") to fund benefits under
Individual Annuity Plans issued by MONY.
6. FEDERAL INCOME TAX-CAPITAL LOSS CARRYFORWARD
At December 31, 1996, the following portfolios of the Fund have capital
loss carryforwards available to offset future capital gains, if any, for federal
income tax purposes:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EXPIRATION DATE
- --------------------------------------------------------------- -------- ------------------
<S> <C> <C>
Long Term Bond................................................. $261,216 December 31, 2004
========
Intermediate Term Bond......................................... $ 16,850 December 31, 2002
17,218 December 31, 2003
66,206 December 31, 2004
--------
$100,274
========
Government Securities.......................................... $ 9,516 December 31, 2004
========
</TABLE>
7. PURCHASES AND SALES OF INVESTMENTS
The aggregate cost of investments purchased and proceeds from sales or
maturities, other than short-term investments, for the year ended December 31,
1996 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- -----------
<S> <C> <C> <C>
Equity Growth Portfolio................. Common Stock $ 810,163 $ 811,804
Equity Income Portfolio................. Common Stock 5,114,611 6,869,438
Intermediate Term Bond Portfolio........ U.S. Government Obligations 7,021,484 5,004,844
Corporate Bonds 15,910,035 5,997,329
Long Term Bond Portfolio................ U.S. Government Obligations 18,056,295 21,311,313
Corporate Bonds 21,062,142 12,835,760
Diversified Portfolio................... Common Stock 702,006 1,005,797
Government Securities Portfolio......... U.S. Government Obligations 10,288,272 1,235,548
</TABLE>
F-19
<PAGE> 70
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
MONY Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities of
MONY Series Fund, Inc. (comprising the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified, Government Securities and
Money Market Portfolios), including the portfolios of investments, as of
December 31, 1996, the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the ten years in the period
then ended for all the Portfolios except Government Securities Portfolio for
which the period is for each of the five years in the period ended December 31,
1996 and for the period from May 1, 1991 (commencement of operations) to
December 31, 1991. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1996, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting the MONY Series Fund, Inc. as of
December 31, 1996, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the periods referred to above, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 14, 1997
F-20
<PAGE> 71
15. Not Applicable.
16. Calculation of Total Return and Yield.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
The Mutual Life Insurance Company of New York ("MONY"), a mutual life
insurance company organized under the laws of New York, through the Keynote
Series Account the MONY Life Insurance Company of America ("MONY America"), a
corporation organized under the laws of Arizona, through MONY America Variable
Account A, MONY America Variable Account L, and MONY America Variable Account S,
MONY Variable Account A, MONY Variable Account L and MONY Variable Account S
will own all of Registrant's outstanding securities, except those shares of the
Registrant purchased by MONY for its own account as initial capitalization for
the Registrant, as described in the Registrant's Prospectus (Shares in the Fund)
and Statement of Additional Information (Control Persons). Those shares will be
voted as directed by persons having interests in the respective Variable
Accounts, registered as unit investment trusts under the Investment Company Act
of 1940 (the "1940 Act"). Registrant might nonetheless be deemed to be
controlled by such Companies by virtue of the presumption contained in Section
2(a)(9) of the 1940 Act although Registrant disclaims such control. MONY America
is a wholly-owned subsidiary of MONY. The subsidiaries of MONY are as follows:
II-2
<PAGE> 72
Organizational chart showing information concerning activities of insurer
members of the holding company group.
II-3
<PAGE> 73
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
Shares have been sold to MONY and MONY Life Insurance Company of America,
as described in the Prospectus.
<TABLE>
<CAPTION>
NUMBER OF
RECORD
TITLE OF CLASS HOLDERS
------------------------------------------------------------------------ ----------
<S> <C>
Equity Income Portfolio Capital Stock................................... 792,193
Equity Growth Portfolio Capital Stock................................... 70,950
Intermediate Term Bond Portfolio Capital Stock.......................... 3,655,407
Government Securities Portfolio Capital Stock........................... 1,549,168
Long Term Bond Portfolio Capital Stock.................................. 4,836,582
Money Market Portfolio Capital Stock.................................... 144,932,159
Diversified Portfolio Capital Stock..................................... 187,922
</TABLE>
ITEM 27. INDEMNIFICATION
Article VII, paragraph (4) of Registrant's Articles of Incorporation
provides that:
The Corporation shall have the power and authority to indemnify its
directors, officers and employees to the fullest extent permitted by law.
No provision of these Articles of Incorporation shall be effective to (a)
require a waiver of compliance with any provision of the Securities Act of
1933, as amended, or the Investment Company Act of 1940, as amended, or of
any valid rule, regulation or order of the Securities and Exchange
Commission thereunder or (b) protect or purport to protect any director or
officer of the Corporation against any liability to the Corporation or its
security holders to which he or she would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence or reckless disregard of
the duties involved in the conduct of his or her office.
Article VIII of the Registrant's By-Laws provides that:
Each officer, director, employee or agent of the Corporation shall be
indemnified by the Corporation to the fullest extent permitted under the
Maryland General Corporation Law and the Investment Company Act of 1940, as
amended. Nothing in the By-Laws protects or purports to protect any
director, officer, employee, or agent of the Corporation against any
liability to the Corporation or its shareholders to which he or she would
otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of
his or her office.
Article V of the Investment Advisory Agreement between Registrant and MONY
America provides that:
The Adviser will not be liable for any error of judgment or mistake of
law or for any loss suffered by the Fund in connection with the investment
management services it performs under this Agreement, except for a loss
resulting from willful misfeasance, bad faith, or gross negligence or
reckless disregard in the performance of the duties or obligations under
this Agreement of Adviser (or its officers, directors, agents, employees,
controlling persons, shareholders, or any other person or entity affiliated
with the Adviser or retained by it to perform or assist in the performance
of its obligations under this Agreement). With respect to the
administrative services it is obligated to perform under this Agreement,
the Adviser will not be liable for any action taken or omitted by it in
good faith without negligence.
The MONY Directors' and Officers' Liability and Corporate Reimbursement
Insurance Policies, provide coverage for "Loss" (as defined in the Policies)
arising from any claim or claims by reason of any
CLAUDE M. BALLARD, JR., Limited Partner, Goldman, Sachs & Company, New
York, New York.
TOM H. BARRETT, Former Chairman of the Board, President & Chief Executive
Officer, The Goodyear Tire & Rubber Company, Akron, Ohio.
DAVID L. CALL, Donald P. Lynch Dean Emeritus, Dean, Cornell University,
College of Agriculture and Life Sciences, Ithaca, New York.
G. ROBERT DURHAM, Retired Chairman and Chief Executive Officer, Walter
Industries, Inc., Tampa, Fla. and Retired Chairman and Chief Executive Officer,
Phelps Dodge Corporation.
JAMES B. FARLEY, Retired Chairman and Chief Executive Officer, MONY.
II-4
<PAGE> 74
ROBERT HOLLAND, JR., Former President and Chief Executive Officer, Ben &
Jerry's Homemade, Inc., White Plains, New York.
JAMES L. JOHNSON, Chairman Emeritus, GTE Corporation, Stamford, Connecticut
06904.
ROBERT R. KILEY, President and Chief Executive Officer, The New York City
Partnership and Chamber of Commerce, Inc., New York, NY.
JOHN R. MEYER, Professor Emeritus, Harvard University, Cambridge,
Massachusetts 02138.
PAUL A. MILLER, Chairman of the Executive Committee, Pacific Enterprises,
Los Angeles, California 90060.
JANE C. PFEIFFER, Management Consultant, Greenwich, Ct.
THOMAS C. THEOBALD, Managing Director, William Blair Capital Partnership,
L.L.C., Chicago, Illinois.
OFFICER-TRUSTEES
MICHAEL I. ROTH, Trustee, Chairman and Chief Executive Officer, MONY;
Director, Chairman and Chief Executive Officer, MONY Life Insurance Company of
America; Director, MONY CS, Inc., and 1740 Advisers, Inc.
SAMUEL J. FOTI, Trustee, President and Chief Operating Officer, MONY;
Director, President and Chief Operating Officer, MONY Life Insurance Company of
America; Director and Chairman, MONY International Holdings, Inc., MONY Life
Insurance Company of the Americas, Ltd., MONY Bank & Trust Company of the
Americas, Ltd.; Director, MONY Brokerage, Inc.,
KENNETH M. LEVINE, Executive Vice President and Chief Investment Officer,
MONY; Director, Chairman, and President, MONY Series Fund, Inc.; Director,
Chairman and Chief Executive Officer, 1740 Ventures, Inc., MONY Realty Partners,
Inc.; Director and President, MONY Funding, Inc.; Director and Executive Vice
President, MONY Life Insurance Company of America; Director, 1740 Advisers, Inc.
The business and other connections of MONY's officers are listed on
schedules A and D of Form ADV for MONY as filed with the Commission on December
20, 1977 and as amended, the text of which is hereby incorporated by reference.
(ii) Directors and Officers of MONY America
The business and other connections of MONY America's officers are listed in
MONY America Variable Account A (Registration No. 33-20453) ordered effective
August 1, 1988 as it may be amended from time to time and as currently on file
with the Commission, the text of which is hereby incorporated by reference.
The business address for all the directors of MONY America is 1740
Broadway, New York, New York 10019.
ITEM 29. PRINCIPAL UNDERWRITERS
MONY Securities Corp. ("MSC") is the principal underwriter of the Fund and
also acts as principal underwriter of the Contracts. MONY acts as a
subinvestment adviser to the Fund through the Services Agreement. The names of
MONY's trustees and officers, as well as their principal business addresses and
positions and offices with MONY, are provided or referenced in response to Item
28. Neither MONY nor any other person receives commissions or other compensation
in connection with distribution of the Fund's shares, although they may receive
such commissions in connection with underwriting of the Contracts.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
All accounts, books, or other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules promulgated thereunder are
maintained by the Registrant, MONY Series Fund, Inc., 1740 Broadway, New York,
New York 10019, or Chase Manhattan Bank, the Registrant's custodian.
II-5
<PAGE> 75
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
(a) Not applicable.
(b) Not Applicable.
(c) Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that Section.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant, pursuant to the provisions of its By-Laws and the laws of Maryland
or otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in said Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the Registrant of expenses paid or incurred by a director, officer or
controlling person in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with
the securities being registered, and the Commission is still of the same
opinion, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
II-6
<PAGE> 76
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this
Post-Effective Amendment No. 13 to Registration Statement to be signed on its
behalf by the undersigned, thereto duly authorized, in the City of New York,
State of New York, on the th day of February, 1997.
MONY Series Fund, Inc.
By /s/ KENNETH M. LEVINE
------------------------------------
Kenneth M. Levine, Chairman
of the Board and President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 9 to Registration Statement has been signed below
by the following persons in the capacities and on the date indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- --------------------------------------------- ----------------------------- ------------------
<C> <S> <C>
/s/ KENNETH M. LEVINE Director, Chairman of the
- --------------------------------------------- Board and President
Kenneth M. Levine (Principal Executive
Officer)
/s/ JOEL DAVIS Director
- ---------------------------------------------
Joel Davis
/s/ MICHAEL J. DRABB Director
- ---------------------------------------------
Michael J. Drabb
/s/ ALAN J. HARTNICK Director , 1997
- ---------------------------------------------
Alan J. Hartnick
/s/ FLOYD L. SMITH Director
- ---------------------------------------------
Floyd L. Smith
</TABLE>
II-7
<PAGE> 77
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO.
- -----------
<C> <S>
(11) Consent of Coopers & Lybrand, L.L.P. Independent Accountants
(16) Calculation of Performance Data
</TABLE>
<PAGE> 1
EXHIBIT 11
(Coopers & Lybrand Letterhead)
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in Post-Effective Amendment No. 13 to the
Registration Statement of MONY Series Fund, Inc. on Form N-1A (File No. 2-95501)
of our report dated February 14, 1997, on our audits of the financial statements
and financial highlights of MONY Series Fund, Inc.
We also consent to the reference to our Firm in the Statement of Additional
Information under the caption "Independent Accountants."
Coopers & Lybrand L.L.P.
New York, New York
February 27, 1997
<PAGE> 1
EXHIBIT 13
<TABLE>
<CAPTION>
SEC YIELD MSF MSF
CALCULATION MSF MSF INTERMEDIATE MSF MSF GOVERNMENT
DECEMBER 31, 1996 LONG TERM BOND DIVERSIFIED TERM BOND EQUITY GROWTH EQUITY INCOME SECURITIES
- -------------------- ---------------- -------------- ---------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
(a-b) 337,189.16 5,507.98 194,101.73 717.15 38,082.86 78,990.93
c 4,854,007.66500 187,934.23500 3,649,030.23900 71,686.64600 800,916.78000 1,507,465.24400
d 12.84000 17.99000 10.96000 30.37000 23.44000 10.58000
(c*d) 62,325,458.42 3,380,936.89 39,993,371.42 2,177,123.44 18,773,489.32 15,948,982.28
(a-b)/(c*d) 0.00541 0.00163 0.00485 0.00033 0.00203 0.00495
((a-b)/(c*d)+1) 1.00541 1.00163 1.00485 1.00033 1.00203 1.00495
((a-b)/(c*d)+1)L6 1.03290 1.00981 1.02948 1.00198 1.01223 1.03009
(((a-b)/(c*d)+1)L6-1 0.03290 0.00981 0.02948 0.00198 0.01223 0.03009
2*((((a-b)/(c*d)+1)L6-1) 0.06581 0.01963 0.05895 0.00396 0.02447 0.06017
- ----------------------------------------------------------------------------------------------------------------------------------
Yield Percentage 6.58061% 1.96293% 5.89514% 0.39561% 2.44663% 6.01735%
</TABLE>
31 -- DECEMBER -- 96
<TABLE>
<CAPTION>
MONEY MARKET SEC EFFECTIVE YIELD MSF
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Base Period Return 0.0009720
BPR+1 1.0009720
366/7 52.2857143
(BPR+1)L(366/7) 1.0521093
(BPR+1)L(366/7)-1 0.0521093
- ----------------------------------------------------------------------------------------------------------------------------
5.2109326%
Regular 7 -- day yield 5.0821714%
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> DIVERSIFIED PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 2,526,950
<INVESTMENTS-AT-VALUE> 3,338,418
<RECEIVABLES> 7,160
<ASSETS-OTHER> 49,137
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,394,715
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14,128
<TOTAL-LIABILITIES> 14,128
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,312,742
<SHARES-COMMON-STOCK> 187,922
<SHARES-COMMON-PRIOR> 208,182
<ACCUMULATED-NII-CURRENT> 67,363
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 189,014
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 811,468
<NET-ASSETS> 3,380,587
<DIVIDEND-INCOME> 38,701
<INTEREST-INCOME> 56,639
<OTHER-INCOME> 0
<EXPENSES-NET> 27,977
<NET-INVESTMENT-INCOME> 67,363
<REALIZED-GAINS-CURRENT> 193,527
<APPREC-INCREASE-CURRENT> 188,333
<NET-CHANGE-FROM-OPS> 449,223
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19,825
<NUMBER-OF-SHARES-REDEEMED> 40,085
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 108,512
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 24
<GROSS-ADVISORY-FEES> 13,426
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 30,345
<AVERAGE-NET-ASSETS> 3,342,490
<PER-SHARE-NAV-BEGIN> 15.72
<PER-SHARE-NII> 0.36
<PER-SHARE-GAIN-APPREC> 1.91
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.99
<EXPENSE-RATIO> 0.91
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> EQUITY GROWTH PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 1,546,254
<INVESTMENTS-AT-VALUE> 2,139,517
<RECEIVABLES> 1,825
<ASSETS-OTHER> 25,971
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,167,313
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 12,644
<TOTAL-LIABILITIES> 12,644
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,365,060
<SHARES-COMMON-STOCK> 70,950
<SHARES-COMMON-PRIOR> 74,621
<ACCUMULATED-NII-CURRENT> 12,501
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 183,845
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 593,263
<NET-ASSETS> 2,154,669
<DIVIDEND-INCOME> 27,521
<INTEREST-INCOME> 7,458
<OTHER-INCOME> 0
<EXPENSES-NET> 22,478
<NET-INVESTMENT-INCOME> 12,501
<REALIZED-GAINS-CURRENT> 186,510
<APPREC-INCREASE-CURRENT> 183,439
<NET-CHANGE-FROM-OPS> 382,450
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,546
<NUMBER-OF-SHARES-REDEEMED> 16,217
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 281,100
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 2,665
<GROSS-ADVISORY-FEES> 8,064
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 24,376
<AVERAGE-NET-ASSETS> 2,006,816
<PER-SHARE-NAV-BEGIN> 25.11
<PER-SHARE-NII> 0.18
<PER-SHARE-GAIN-APPREC> 5.08
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 30.37
<EXPENSE-RATIO> 1.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> EQUITY INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 13,276,962
<INVESTMENTS-AT-VALUE> 18,636,175
<RECEIVABLES> 38,259
<ASSETS-OTHER> 54,075
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 18,728,509
<PAYABLE-FOR-SECURITIES> 114,125
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 42,037
<TOTAL-LIABILITIES> 156,162
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,956,469
<SHARES-COMMON-STOCK> 792,193
<SHARES-COMMON-PRIOR> 922,757
<ACCUMULATED-NII-CURRENT> 500,290
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,756,375
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,359,213
<NET-ASSETS> 18,572,347
<DIVIDEND-INCOME> 564,718
<INTEREST-INCOME> 39,555
<OTHER-INCOME> 0
<EXPENSES-NET> 97,627
<NET-INVESTMENT-INCOME> 506,646
<REALIZED-GAINS-CURRENT> 1,744,115
<APPREC-INCREASE-CURRENT> 1,057,847
<NET-CHANGE-FROM-OPS> 3,308,608
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 34,413
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,290
<NUMBER-OF-SHARES-REDEEMED> 152,508
<SHARES-REINVESTED> 1,654
<NET-CHANGE-IN-ASSETS> 481,312
<ACCUMULATED-NII-PRIOR> 28,990
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 524
<GROSS-ADVISORY-FEES> 72,917
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 99,523
<AVERAGE-NET-ASSETS> 18,167,260
<PER-SHARE-NAV-BEGIN> 19.61
<PER-SHARE-NII> 0.64
<PER-SHARE-GAIN-APPREC> 3.23
<PER-SHARE-DIVIDEND> 0.04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.44
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> INTERMEDIATE TERM BOND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 39,443,119
<INVESTMENTS-AT-VALUE> 39,411,502
<RECEIVABLES> 608,994
<ASSETS-OTHER> 68,678
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 40,089,174
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,921
<TOTAL-LIABILITIES> 43,921
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,892,935
<SHARES-COMMON-STOCK> 3,655,407
<SHARES-COMMON-PRIOR> 3,548,486
<ACCUMULATED-NII-CURRENT> 2,284,209
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (100,274)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (31,617)
<NET-ASSETS> 40,045,253
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,466,764
<OTHER-INCOME> 0
<EXPENSES-NET> 182,555
<NET-INVESTMENT-INCOME> 2,284,209
<REALIZED-GAINS-CURRENT> (66,206)
<APPREC-INCREASE-CURRENT> (844,291)
<NET-CHANGE-FROM-OPS> 1,373,712
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,048,172
<NUMBER-OF-SHARES-REDEEMED> 941,251
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,525,420
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (34,068)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 155,967
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 184,923
<AVERAGE-NET-ASSETS> 38,866,113
<PER-SHARE-NAV-BEGIN> 10.57
<PER-SHARE-NII> 0.62
<PER-SHARE-GAIN-APPREC> (0.23)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.96
<EXPENSE-RATIO> 0.48
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> LONG TERM BOND PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 59,410,820
<INVESTMENTS-AT-VALUE> 60,969,819
<RECEIVABLES> 1,120,886
<ASSETS-OTHER> 78,020
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 62,168,725
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 69,908
<TOTAL-LIABILITIES> 69,908
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 56,963,989
<SHARES-COMMON-STOCK> 4,836,582
<SHARES-COMMON-PRIOR> 4,813,370
<ACCUMULATED-NII-CURRENT> 3,837,045
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (261,216)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,558,999
<NET-ASSETS> 62,098,817
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,112,161
<OTHER-INCOME> 0
<EXPENSES-NET> 275,116
<NET-INVESTMENT-INCOME> 3,837,045
<REALIZED-GAINS-CURRENT> 605,958
<APPREC-INCREASE-CURRENT> (4,731,783)
<NET-CHANGE-FROM-OPS> (288,780)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,693,456
<NUMBER-OF-SHARES-REDEEMED> 1,670,244
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 80,928
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (867,174)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 240,048
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 277,890
<AVERAGE-NET-ASSETS> 60,002,367
<PER-SHARE-NAV-BEGIN> 12.88
<PER-SHARE-NII> 0.79
<PER-SHARE-GAIN-APPREC> (0.83)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.84
<EXPENSE-RATIO> 0.46
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> MONEY MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 146,013,192
<INVESTMENTS-AT-VALUE> 146,013,192
<RECEIVABLES> 1,215,175
<ASSETS-OTHER> 66,345
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 147,294,712
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,362,553
<TOTAL-LIABILITIES> 2,362,553
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 144,932,159
<SHARES-COMMON-STOCK> 144,932,159
<SHARES-COMMON-PRIOR> 110,366,978
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 144,932,159
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,434,175
<OTHER-INCOME> 0
<EXPENSES-NET> 528,590
<NET-INVESTMENT-INCOME> 5,905,585
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 5,905,585
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 689,151,108
<NUMBER-OF-SHARES-REDEEMED> 660,491,512
<SHARES-REINVESTED> 5,905,585
<NET-CHANGE-IN-ASSETS> 34,565,181
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 473,307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 534,486
<AVERAGE-NET-ASSETS> 119,347,517
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> GOVERNMENT SECURITIES
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 16,189,016
<INVESTMENTS-AT-VALUE> 16,205,621
<RECEIVABLES> 129,732
<ASSETS-OTHER> 72,204
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16,407,557
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24,257
<TOTAL-LIABILITIES> 24,257
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 15,680,978
<SHARES-COMMON-STOCK> 1,549,168
<SHARES-COMMON-PRIOR> 838,370
<ACCUMULATED-NII-CURRENT> 695,233
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (9,516)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16,605
<NET-ASSETS> 16,383,300
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 760,040
<OTHER-INCOME> 0
<EXPENSES-NET> 64,807
<NET-INVESTMENT-INCOME> 695,233
<REALIZED-GAINS-CURRENT> (9,516)
<APPREC-INCREASE-CURRENT> (170,310)
<NET-CHANGE-FROM-OPS> 515,407
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 611,635
<NUMBER-OF-SHARES-REDEEMED> 224,558
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 7,827,407
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 49,987
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 67,831
<AVERAGE-NET-ASSETS> 12,445,541
<PER-SHARE-NAV-BEGIN> 10.21
<PER-SHARE-NII> 0.45
<PER-SHARE-GAIN-APPREC> (0.08)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.58
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
