<PAGE> 1
MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
1998 SEMI-ANNUAL REPORT
PRODUCTS:
MONYMASTER
MONYEQUITY MASTER
VALUEMASTER
MONYVESTOR
STRATEGIST
- --------------------------------------------------------------------------------
[MUTUAL OF NEW YORK LOGO]
- --------------------------------------------------------------------------------
<PAGE> 2
THE HISTORICAL RETURNS FOR THE PORTFOLIOS TAKE INTO ACCOUNT EXPENSES INCLUDING
INVESTMENT MANAGEMENT FEES INCURRED BY THE PORTFOLIOS, BUT NOT OTHER CHARGES
IMPOSED BY THE VARIABLE ACCOUNTS. AN INVESTOR MAY NOT INVEST DIRECTLY INTO THE
MONY SERIES FUND, INC. OR ENTERPRISE ACCUMULATION TRUST PORTFOLIOS. ACTUAL
RETURNS FOR THE VARIABLE PRODUCT YOU OWN WOULD THEREFORE BE LOWER. OF COURSE,
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
THIS REPORT IS NOT TO BE CONSTRUED AS AN OFFERING FOR SALE OF ANY CONTRACTS
PARTICIPATING IN THE MONY SERIES FUND, INC., ENTERPRISE ACCUMULATION TRUST OR
THE OCC ACCUMULATION TRUST, OR AS A SOLICITATION AS AN OFFER TO BUY ANY SUCH
CONTRACTS UNLESS PRECEDED BY OR ACCOMPANIED BY THE MOST RECENT CALENDAR QUARTER
MONYMASTER, MONYEQUITY MASTER OR VALUEMASTER PERFORMANCE AND A CURRENT
MONYMASTER, MONYEQUITY MASTER OR VALUEMASTER PROSPECTUS WHICH CONTAINS MORE
COMPLETE INFORMATION OF CHARGES AND EXPENSES.
THE INFORMATION PROVIDED ON THE MONYVESTOR AND STRATEGIST ARE FOR THOSE
CONTRACTS THAT ARE INFORCE. THESE PRODUCTS ARE NO LONGER AVAILABLE TO THE
GENERAL PUBLIC.
<PAGE> 3
MONY SERIES FUND, INC.
Dear Shareholder,
The major investment event of the second quarter was the resurgence of
problems in Asia, this time centered on Japan. As happened last fall, the dollar
strengthened, projections for U.S. economic growth and inflation were lowered,
and U.S. interest rates fell as foreign investors sought a safe haven. Stock
investors also sought safety by moving into big cap growth stocks and
technology.
The pace of U.S. economic growth has begun to slow, the second quarter is
expected to show a marked deceleration from the fast pace of the first quarter.
The problems in Asia are beginning to affect U.S. companies as exports to the
area decline. Europe still seems okay, but the rest of the world including
Russia and South America is weakening. Japan is in a recession, and their
problems are affecting many of their neighbors. This worldwide weakness is
keeping commodity inflation low, will continue to cut U.S. economic growth
keeping interest rates stable and should keep the Federal Reserve neutral.
While this slowdown is good news for bonds, especially U.S. bonds, it has
negative implications for stocks. U.S. companies are selling less, and low
inflation limits the ability to raise prices. Employment costs have been
increasing, but in many cases, cannot be passed along. As a result, profit
margins are under pressure and earnings uncertainty is increasing. Companies
have begun guiding analysts' estimates lower; the market's punishment is severe
if earnings fall short of expectations.
While these events have been occurring, the popular averages and stock
valuations remain near record highs. While many individual stocks have corrected
10 to 15 percent or more, the averages remain near the top of a trading range
that has prevailed for several months. During this time, the averages
experienced declines of 5 to 6 percent before recovering. With uncertainties in
Asia, in the U.S. economy and in the corporate profit outlook, it does not
appear to be the time to be overly aggressive.
At the same time, there are reasons not to be overly bearish. The same
desire for safety that is driving the dollar and bonds could also spill over
into U.S. stocks. The U.S. economy and earnings are going to slow, but not
collapse, and at some point Asia will begin to recover. Finally, low interest
rates and a neutral monetary policy are positives. The market can handle
earnings uncertainties, this causes corrections. Rising interest rates and a
hostile Federal Reserve is what turns a correction into something worse.
The evidence points to a continuation of the trading range for the near
future. There is not much to push it dramatically up except and improbably quick
resolution to the Asian problems. There are a number of events that could push
the market down further -- a much worse Asia, higher compensation costs, worse
than expected earnings, but the favorable monetary and interest rate environment
puts a floor under the trading range. Mutual fund flows continue positive;
anything that changes individuals' current preference for stocks would be
negative of course. Within the range there will likely be sector rotation and on
a day to day basis reaction to economic and market news from the Far East.
Sincerely,
/s/ KENNETH M. LEVINE
Kenneth M. Levine
Chairman
1
<PAGE> 4
THE MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
VARIABLE ACCOUNT L
MONY America
Statements of Assets and Liabilities as of June
30, 1998.......................................... 4
Statements of Operations as of June 30, 1998...... 6
Statements of Changes in Net Assets............... 8
Notes to Financial Statements..................... 11
MONY
Statements of Assets and Liabilities as of June
30, 1998.......................................... 14
Statements of Operations as of June 30, 1998...... 16
Statements of Changes in Net Assets............... 18
Notes to Financial Statements..................... 21
VARIABLE ACCOUNT S
MONY America
Statements of Assets and Liabilities as of June
30, 1998.......................................... 24
Statements of Operations as of June 30, 1998...... 25
Statements of Changes in Net Assets............... 26
Notes to Financial Statements..................... 27
MONY
Statements of Assets and Liabilities as of June
30, 1998.......................................... 29
Statements of Operations as of June 30, 1998...... 30
Statements of Changes in Net Assets............... 31
Notes to Financial Statements..................... 32
VARIABLE ACCOUNT A
MONY America
Statements of Assets and Liabilities as of June
30, 1998.......................................... 34
Statements of Operations as of June 30, 1998...... 37
Statements of Changes in Net Assets............... 40
Notes to Financial Statements..................... 44
MONY
Statements of Assets and Liabilities as of June
30, 1998.......................................... 47
Statements of Operations as of June 30, 1998...... 50
Statements of Changes in Net Assets............... 53
Notes to Financial Statements..................... 57
MONY SERIES FUND, INC
Equity Growth Portfolio (MONYMaster I, MONYVestor and
Strategist)........................................... 60
Equity Income Portfolio (MONYMaster I, MONYVestor and
Strategist)........................................... 60
Intermediate Term Bond Portfolio (MONYEquity Master,
MONYMaster I&II, MONYVestor and Strategist)........... 61
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Long Term Bond Portfolio (MONYEquity Master, MONYMaster
I&II, MONYVestor and Strategist)...................... 62
Diversified Portfolio (MONYMaster I, MONYVestor and
Strategist)........................................... 63
Government Securities Bond Portfolio (MONYEquity
Master, MONYMaster II)................................ 64
Money Market Portfolio (MONYEquity Master, MONYMaster
I&II, MONYVestor and Strategist)...................... 65
Equity Growth Portfolio of Investments (MONYMaster I,
MONYVestor and Strategist)............................ 66
Equity Income Portfolio of Investments (MONYMaster I,
MONYVestor and Strategist)............................ 68
Intermediate Term Bond Portfolio of Investments
(MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)........................................... 70
Long Term Bond Portfolio of Investments (MONYEquity
Master, MONYMaster I&II, MONYVestor and Strategist)... 72
Diversified Portfolio of Investments (MONYMaster I,
MONYVestor and Strategist)............................ 73
Government Securities Bond Portfolio of Investments
(MONYEquity Master, MONYMaster II).................... 75
Money Market Portfolio of Investments (MONYEquity
Master, MONYMaster I&II, MONYVestor and Strategist)... 76
Statements of Assets and Liabilities as of June 30,
1998.................................................. 78
Statements of Operations as of June 30, 1998........... 79
Statements of Changes in Net Assets.................... 80
NOTES TO FINANCIAL STATEMENTS.......................... 82
FINANCIAL HIGHLIGHTS................................... 86
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio (MONYEquity Master, MONYMaster II).... 95
Small Company Value Portfolio (MONYEquity Master,
MONYMaster II)........................................ 97
Managed Portfolio (MONYEquity Master, MONYMaster II)... 101
International Growth Portfolio (MONYEquity Master,
MONYMaster II)........................................ 104
High Yield Bond Portfolio (MONYEquity Master,
MONYMaster II)........................................ 109
Statements of Assets and Liabilities as of June 30,
1998.................................................. 114
Statements of Operations as of June 30, 1998........... 115
Statements of Changes in Net Assets.................... 116
FINANCIAL HIGHLIGHTS................................... 118
NOTES TO FINANCIAL STATEMENTS.......................... 123
OCC ACCUMULATION TRUST
Equity Portfolio (ValueMaster)......................... 128
Small Cap Portfolio (ValueMaster)...................... 130
Managed Portfolio (ValueMaster)........................ 132
U.S. Government Income Portfolio (ValueMaster)......... 134
Money Market Portfolio (ValueMaster)................... 135
Equity Portfolio Schedule of Investments
(ValueMaster)......................................... 136
Small Cap Portfolio Schedule of Investments
(ValueMaster)......................................... 137
Managed Portfolio Schedule of Investments
(ValueMaster)......................................... 138
U.S. Government Income Portfolio Schedule of
Investments (ValueMaster)............................. 139
Money Market Portfolio Schedule of Investments
(ValueMaster)......................................... 140
Statements of Assets and Liabilities as of June 30,
1998.................................................. 141
Statements of Operations as of June 30, 1998........... 142
Statements of Changes in Net Assets.................... 143
NOTES TO FINANCIAL STATEMENTS.......................... 144
FINANCIAL HIGHLIGHTS................................... 147
</TABLE>
3
<PAGE> 6
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $ 690,738 $ 605,462 $ 151,450 $ 61,641 $1,038,787 $ 73,159
========= ========= ========= ========= ========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................ $ 902,727 $ 758,612 $ 156,568 $ 69,179 $1,198,581 $ 73,159
Amount due from MONY Series
Fund, Inc. ................... 251 532 228 0 286 136
Amount due from MONY America.... 189 70 0 0 327 56
--------- --------- --------- --------- ---------- ---------
Total assets.......... 903,167 759,214 156,796 69,179 1,199,194 73,351
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY Series Fund,
Inc. ......................... 189 70 0 0 327 56
Amount due to MONY America...... 251 532 228 0 286 136
--------- --------- --------- --------- ---------- ---------
Total liabilities..... 440 602 228 0 613 192
--------- --------- --------- --------- ---------- ---------
Net assets...................... $ 902,727 $ 758,612 $ 156,568 $ 69,179 $1,198,581 $ 73,159
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net
payments................... $ 531,146 $ 435,233 $ 187,265 $ 102,649 $ 874,416 $ 194,332
Cost of insurance withdrawals
(Note 3)................... (383,528) (486,949) (201,904) (156,404) (916,797) (200,035)
Undistributed net investment
income..................... 303,927 443,853 171,505 103,801 791,252 78,862
Accumulated net realized gain
(loss) on investments...... 239,193 213,325 (5,416) 11,595 289,916 0
Unrealized appreciation of
investments................ 211,989 153,150 5,118 7,538 159,794 0
--------- --------- --------- --------- ---------- ---------
Net assets...................... $ 902,727 $ 758,612 $ 156,568 $ 69,179 $1,198,581 $ 73,159
========= ========= ========= ========= ========== =========
Number of units outstanding*.... 14,392 12,131 6,432 2,145 26,889 3,982
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding*.................. $ 62.73 $ 62.54 $ 24.34 $ 32.24 $ 44.58 $ 18.37
========= ========= ========= ========= ========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................. $327,692 $1,117,720 $485,666 $3,314,283 $21,357,437 $12,042,034
======== ========== ======== ========== =========== ===========
Investments in Enterprise Accumulation Trust
at net asset value (Note 2)................. $ 0 $ 0 $ 0 $ 0 $24,287,314 $13,632,944
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)........................ 327,335 1,167,798 489,467 3,314,283 0 0
Amount due from Enterprise Accumulation
Trust....................................... 0 0 0 0 4,430 2,697
Amount due from MONY America.................. 0 13,886 0 30,006 26,033 20,070
Amount due from MONY Series Fund, Inc......... 712 314 54 308 0 0
-------- ---------- -------- ---------- ----------- -----------
Total assets.......................... 328,047 1,181,998 489,521 3,344,597 24,317,777 13,655,711
-------- ---------- -------- ---------- ----------- -----------
LIABILITIES
Amount due to Enterprise Accumulation Trust... 0 0 0 0 26,033 20,070
Amount due to MONY America.................... 712 314 54 308 4,430 2,697
Amount due to MONY Series Fund, Inc........... 0 13,886 0 30,006 0 0
-------- ---------- -------- ---------- ----------- -----------
Total liabilities..................... 712 14,200 54 30,314 30,463 22,767
-------- ---------- -------- ---------- ----------- -----------
Net assets.................................... $327,335 $1,167,798 $489,467 $3,314,283 $24,287,314 $13,632,944
======== ========== ======== ========== =========== ===========
Net assets consist of:
Contractholders' net payments............... $349,618 $1,149,831 $532,002 $3,574,764 $22,241,943 $11,737,561
Cost of insurance withdrawals (Note 3)...... (43,218) (167,996) (91,027) (544,035) (2,948,581) (1,239,409)
Undistributed net investment income......... 19,742 96,924 31,146 283,554 462,899 664,950
Accumulated net realized gain on
investments............................... 1,550 38,961 13,545 0 1,601,176 878,932
Unrealized appreciation (depreciation) of
investments............................... (357) 50,078 3,801 0 2,929,877 1,590,910
-------- ---------- -------- ---------- ----------- -----------
Net assets.................................... $327,335 $1,167,798 $489,467 $3,314,283 $24,287,314 $13,632,944
======== ========== ======== ========== =========== ===========
Number of units outstanding*.................. 26,601 81,736 40,623 285,756 1,084,383 656,312
-------- ---------- -------- ---------- ----------- -----------
Net asset value per unit outstanding*......... $ 12.31 $ 14.29 $ 12.05 $ 11.60 $ 22.40 $ 20.77
======== ========== ======== ========== =========== ===========
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................. $ 71,066,712 $5,597,050 $2,681,287
============ ========== ==========
Investments in Enterprise Accumulation Trust
at net asset value (Note 2)................. $ 81,829,457 $5,989,695 $2,711,629
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)........................ 0 0 0
Amount due from Enterprise Accumulation
Trust....................................... 15,220 913 1,852
Amount due from MONY America.................. 60,248 3,107 707
Amount due from MONY Series Fund, Inc......... 0 0 0
------------ ---------- ----------
Total assets.......................... 81,904,925 5,993,715 2,714,188
------------ ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust... 60,248 3,107 707
Amount due to MONY America.................... 15,220 913 1,852
Amount due to MONY Series Fund, Inc........... 0 0 0
------------ ---------- ----------
Total liabilities..................... 75,468 4,020 2,559
------------ ---------- ----------
Net assets.................................... $ 81,829,457 $5,989,695 $2,711,629
============ ========== ==========
Net assets consist of:
Contractholders' net payments............... $ 72,909,930 $6,015,809 $2,719,688
Cost of insurance withdrawals (Note 3)...... (10,471,466) (773,836) (338,204)
Undistributed net investment income......... 2,454,353 96,926 242,896
Accumulated net realized gain on
investments............................... 6,173,895 258,151 56,907
Unrealized appreciation (depreciation) of
investments............................... 10,762,745 392,645 30,342
------------ ---------- ----------
Net assets.................................... $ 81,829,457 $5,989,695 $2,711,629
============ ========== ==========
Number of units outstanding*.................. 3,607,673 377,353 185,146
------------ ---------- ----------
Net asset value per unit outstanding*......... $ 22.68 $ 15.87 $ 14.65
============ ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
5
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income............. $138,442 $118,315 $8,132 $3,912 $ 261,166 $1,905
Mortality and expense risk
charges (Note 3).......... (2,536) (2,220) (461) (206) (3,420) (219)
-------- -------- ------ ------ --------- ------
Net investment income....... 135,906 116,095 7,671 3,706 257,746 1,686
-------- -------- ------ ------ --------- ------
Realized and unrealized gain
on investments (Note 2):
Proceeds from sales....... 36,894 30,004 10,111 7,446 100,513 7,713
Cost of shares sold....... (22,002) (17,866) (9,532) (6,660) (66,788) (7,713)
-------- -------- ------ ------ --------- ------
Net realized gain on
investments............... 14,892 12,138 579 786 33,725 0
Net decrease in unrealized
appreciation of
investments............... (39,898) (65,096) (3,255) (962) (144,774) 0
-------- -------- ------ ------ --------- ------
Net realized and unrealized
loss on investments....... (25,006) (52,958) (2,676) (176) (111,049) 0
-------- -------- ------ ------ --------- ------
Net increase in net assets
resulting from
operations................ $110,900 $ 63,137 $4,995 $3,530 $ 146,697 $1,686
======== ======== ====== ====== ========= ======
</TABLE>
See notes to financial statements.
6
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.................. $ 14,696 $ 53,185 $ 18,282 $ 71,134 $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............... (1,051) (3,568) (1,660) (10,171) (76,008) (40,883) (265,268)
-------- --------- --------- ------------ ----------- ----------- -----------
Net investment income (loss)..... 13,645 49,617 16,622 60,963 (76,008) (40,883) (265,268)
-------- --------- --------- ------------ ----------- ----------- -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 40,740 276,713 171,180 11,544,812 2,634,266 1,549,975 7,943,371
Cost of shares sold............ (40,118) (245,997) (163,607) (11,544,812) (1,977,458) (1,054,122) (5,512,846)
-------- --------- --------- ------------ ----------- ----------- -----------
Net realized gain on
investments.................... 622 30,716 7,573 0 656,808 495,853 2,430,525
Net increase (decrease) in
unrealized appreciation of
investments.................... (5,617) (27,923) (12,537) 0 1,564,547 948,364 5,395,363
-------- --------- --------- ------------ ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments.......... (4,995) 2,793 (4,964) 0 2,221,355 1,444,217 7,825,888
-------- --------- --------- ------------ ----------- ----------- -----------
Net increase in net assets
resulting from operations...... $ 8,650 $ 52,410 $ 11,658 $ 60,963 $ 2,145,347 $ 1,403,334 $ 7,560,620
======== ========= ========= ============ =========== =========== ===========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
Dividend income.................. $ 0 $ 90,721
Mortality and expense risk
charges (Note 3)............... (18,787) (8,762)
--------- ---------
Net investment income (loss)..... (18,787) 81,959
--------- ---------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 725,269 369,346
Cost of shares sold............ (632,167) (348,740)
--------- ---------
Net realized gain on
investments.................... 93,102 20,606
Net increase (decrease) in
unrealized appreciation of
investments.................... 500,168 (8,414)
--------- ---------
Net realized and unrealized gain
(loss) on investments.......... 593,270 12,192
--------- ---------
Net increase in net assets
resulting from operations...... $ 574,483 $ 94,151
========= =========
</TABLE>
See notes to financial statements.
7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........ $135,906 $ 53,040 $116,095 $ 76,627 $ 7,671 $ 9,374
Net realized gain on
investments................ 14,892 33,607 12,138 84,704 579 1,672
Net increase (decrease) in
unrealized appreciation of
investments................ (39,898) 101,936 (65,096) 32,332 (3,255) 288
-------- -------- -------- --------- -------- --------
Net increase in net assets
resulting from operations.... 110,900 188,583 63,137 193,663 4,995 11,334
-------- -------- -------- --------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 27,757 35,646 15,141 39,172 4,591 8,194
Net asset value of units
redeemed or used to meet
contract obligations....... (34,064) (59,621) (25,326) (193,625) (9,555) (40,032)
-------- -------- -------- --------- -------- --------
Net decrease from unit
transactions................. (6,307) (23,975) (10,185) (154,453) (4,964) (31,838)
-------- -------- -------- --------- -------- --------
Net increase (decrease) in net
assets....................... 104,593 164,608 52,952 39,210 31 (20,504)
Net assets beginning of
period....................... 798,134 633,526 705,660 666,450 156,537 177,041
-------- -------- -------- --------- -------- --------
Net assets end of period*...... $902,727 $798,134 $758,612 $ 705,660 $156,568 $156,537
======== ======== ======== ========= ======== ========
Units outstanding beginning of
period....................... 14,506 14,958 12,292 15,149 6,639 8,041
Units issued during the
period....................... 457 747 254 783 193 362
Units redeemed during the
period....................... (571) (1,199) (415) (3,640) (400) (1,764)
-------- -------- -------- --------- -------- --------
Units outstanding end of
period....................... 14,392 14,506 12,131 12,292 6,432 6,639
======== ======== ======== ========= ======== ========
- ---------------
* Includes undistributed net
investment income of: $303,927 $168,021 $443,853 $ 327,758 $171,505 $163,834
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------------------
LONG TERM DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........ $ 3,706 $ 5,147 $ 257,746 $ 77,745 $ 1,686 $ 3,689
Net realized gain on
investments................ 786 3,780 33,725 100,092 0 0
Net increase (decrease) in
unrealized appreciation of
investments................ (962) 649 (144,774) 59,772 0 0
-------- -------- ---------- ---------- ------- --------
Net increase in net assets
resulting from operations.... 3,530 9,576 146,697 237,609 1,686 3,689
-------- -------- ---------- ---------- ------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 1,218 4,547 32,883 77,730 3,352 6,471
Net asset value of units
redeemed or used to meet
contract obligations....... (7,124) (37,821) (92,162) (287,917) (7,442) (19,886)
-------- -------- ---------- ---------- ------- --------
Net decrease from unit
transactions................. (5,906) (33,274) (59,279) (210,187) (4,090) (13,415)
-------- -------- ---------- ---------- ------- --------
Net increase (decrease) in net
assets....................... (2,376) (23,698) 87,418 27,422 (2,404) (9,726)
Net assets beginning of
period....................... 71,555 95,253 1,111,163 1,083,741 75,563 85,289
-------- -------- ---------- ---------- ------- --------
Net assets end of period*...... $ 69,179 $ 71,555 $1,198,581 $1,111,163 $73,159 $ 75,563
======== ======== ========== ========== ======= ========
Units outstanding beginning of
period....................... 2,334 3,504 28,291 34,279 4,207 4,970
Units issued during the
period....................... 39 165 788 2,219 185 368
Units redeemed during the
period....................... (228) (1,335) (2,190) (8,207) (410) (1,131)
-------- -------- ---------- ---------- ------- --------
Units outstanding end of
period....................... 2,145 2,334 26,889 28,291 3,982 4,207
======== ======== ========== ========== ======= ========
- ---------------
* Includes undistributed net
investment income of: $103,801 $100,095 $ 791,252 $ 533,506 $78,862 $ 77,176
</TABLE>
See notes to financial statements.
8
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------
INTERMEDIATE TERM LONG TERM GOVERNMENT
BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 13,645 $ 5,087 $ 49,617 $ 36,542 $ 16,622 $ 11,060
Net realized gain on
investments.................... 622 1,269 30,716 6,284 7,573 4,933
Net increase (decrease) in
unrealized appreciation
of investments................. (5,617) 3,027 (27,923) 56,115 (12,537) 9,241
-------- -------- ---------- --------- --------- ---------
Net increase in net assets
resulting from operations........ 8,650 9,383 52,410 98,941 11,658 25,234
-------- -------- ---------- --------- --------- ---------
From unit transactions:
Net proceeds from the issuance of
units.......................... 118,343 172,340 400,847 471,749 122,700 288,293
Net asset value of units redeemed
or used to meet contract
obligations.................... (34,023) (38,182) (233,921) (236,759) (143,296) (107,779)
-------- -------- ---------- --------- --------- ---------
Net increase (decrease) from unit
transactions..................... 84,320 134,158 166,926 234,990 (20,596) 180,514
-------- -------- ---------- --------- --------- ---------
Net increase (decrease) in net
assets........................... 92,970 143,541 219,336 333,931 (8,938) 205,748
Net assets beginning of period..... 234,365 90,824 948,462 614,531 498,405 292,657
-------- -------- ---------- --------- --------- ---------
Net assets end of period*.......... $327,335 $234,365 $1,167,798 $ 948,462 $ 489,467 $ 498,405
======== ======== ========== ========= ========= =========
Units outstanding beginning of
period........................... 19,650 8,138 69,779 50,910 42,420 26,498
Units issued during the period..... 9,749 14,831 28,804 37,613 10,316 25,322
Units redeemed during the period... (2,798) (3,319) (16,847) (18,744) (12,113) (9,400)
-------- -------- ---------- --------- --------- ---------
Units outstanding end of period.... 26,601 19,650 81,736 69,779 40,623 42,420
======== ======== ========== ========= ========= =========
- ---------------
* Includes undistributed net
investment income of: $ 19,742 $ 6,097 $ 96,924 $ 47,307 $ 31,146 $ 14,524
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------
MONEY
MARKET
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1998 1997
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 60,963 $ 115,801
Net realized gain on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation
of investments................. 0 0
----------- ------------
Net increase in net assets
resulting from operations........ 60,963 115,801
----------- ------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 9,315,113 20,219,389
Net asset value of units redeemed
or used to meet contract
obligations.................... (9,760,467) (20,985,756)
----------- ------------
Net increase (decrease) from unit
transactions..................... (445,354) (766,367)
----------- ------------
Net increase (decrease) in net
assets........................... (384,391) (650,566)
Net assets beginning of period..... 3,698,674 4,349,240
----------- ------------
Net assets end of period*.......... $ 3,314,283 $ 3,698,674
=========== ============
Units outstanding beginning of
period........................... 325,979 400,565
Units issued during the period..... 810,944 1,818,649
Units redeemed during the period... (851,167) (1,893,235)
----------- ------------
Units outstanding end of period.... 285,756 325,979
=========== ============
- ---------------
* Includes undistributed net
investment income of: $ 283,554 $ 222,591
</TABLE>
See notes to financial statements.
9
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
---------------------------------------------------------------------------------------
EQUITY MANAGED
SUBACCOUNT SMALL CAP SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ (76,008) $ 467,545 $ (40,883) $ 660,447 $ (265,268) $ 2,400,789
Net realized gain on
investments................. 656,808 746,120 495,853 342,745 2,430,525 2,836,432
Net increase (decrease) in
unrealized appreciation of
investments................. 1,564,547 984,236 948,364 568,217 5,395,363 3,108,829
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations..... 2,145,347 2,197,901 1,403,334 1,571,409 7,560,620 8,346,050
----------- ----------- ----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units.................... 7,970,494 11,812,002 5,176,331 5,248,401 21,000,033 36,238,986
Net asset value of units
redeemed or used to meet
contract obligations........ (2,311,325) (2,656,849) (1,131,446) (1,072,152) (6,800,197) (9,726,108)
----------- ----------- ----------- ----------- ----------- -----------
Net increase from unit
transactions.................. 5,659,169 9,155,153 4,044,885 4,176,249 14,199,836 26,512,878
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets...... 7,804,516 11,353,054 5,448,219 5,747,658 21,760,456 34,858,928
Net assets beginning of
period........................ 16,482,798 5,129,744 8,184,725 2,437,067 60,069,001 25,210,073
----------- ----------- ----------- ----------- ----------- -----------
Net assets end of period*....... $24,287,314 $16,482,798 $13,632,944 $ 8,184,725 $81,829,457 $60,069,001
=========== =========== =========== =========== =========== ===========
Units outstanding beginning of
period........................ 821,090 319,002 449,403 191,743 2,954,670 1,532,486
Units issued during the
period........................ 371,149 647,931 264,383 326,703 966,250 1,945,611
Units redeemed during the
period........................ (107,856) (145,843) (57,474) (69,043) (313,247) (523,427)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding end of
period........................ 1,084,383 821,090 656,312 449,403 3,607,673 2,954,670
=========== =========== =========== =========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 462,899 $ 538,907 $ 664,950 $ 705,833 $ 2,454,353 $ 2,719,621
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
---------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ (18,787) $ 98,833 $ 81,959 $ 111,190
Net realized gain on
investments................. 93,102 135,511 20,606 35,931
Net increase (decrease) in
unrealized appreciation of
investments................. 500,168 (204,105) (8,414) 12,532
---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations..... 574,483 30,239 94,151 159,653
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units.................... 1,952,718 3,034,936 928,475 1,268,282
Net asset value of units
redeemed or used to meet
contract obligations........ (616,760) (717,365) (250,716) (319,664)
---------- ---------- ---------- ----------
Net increase from unit
transactions.................. 1,335,958 2,317,571 677,759 948,618
---------- ---------- ---------- ----------
Net increase in net assets...... 1,910,441 2,347,810 771,910 1,108,271
Net assets beginning of
period........................ 4,079,254 1,731,444 1,939,719 831,448
---------- ---------- ---------- ----------
Net assets end of period*....... $5,989,695 $4,079,254 $2,711,629 $1,939,719
========== ========== ========== ==========
Units outstanding beginning of
period........................ 290,466 128,820 138,275 66,709
Units issued during the
period........................ 127,685 211,751 64,149 95,695
Units redeemed during the
period........................ (40,798) (50,105) (17,278) (24,129)
---------- ---------- ---------- ----------
Units outstanding end of
period........................ 377,353 290,466 185,146 138,275
========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 96,926 $ 115,713 $ 242,896 $ 160,937
</TABLE>
See notes to financial statements.
10
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life Insurance (Strategist), Variable Universal Life
(MONYEquity Master) and Corporate Sponsored Variable Life Insurance policies.
These policies are issued by MONY America, which is a wholly-owned subsidiary of
The Mutual Life Insurance Company of New York ("MONY"). For presentation
purposes, the information related to the Variable Life and Variable Universal
Life Insurance policies are presented here.
There are currently six Variable Life Subaccounts and nine Variable
Univeral Life Subaccounts within the Variable Account, each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund") or the
Enterprise Accumulation Trust ("Enterprise") (collectively, the "Funds"). The
subaccounts of the Variable Universal Life commenced operations during 1995. The
Funds are registered under the 1940 Act as open end, diversified, management
investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 60 to 93 and 95 to 126,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Funds. Except for the Money Market
Portfolios, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolios, the net asset values are based on amortized cost of the securities
held which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for the Variable Life and Variable Universal Subaccounts for 1998
aggregated $7,530,394.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal
11
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Life Subaccounts) of aggregate average daily net assets. As investment adviser
to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at June 30, 1998 (unaudited) consist
of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares........................ 22,121 26,039 14,077 5,245 53,914 75,563
Amount........................ $546,247 $487,414 $148,164 $ 63,055 $ 806,595 $ 75,563
-------- -------- -------- -------- ---------- --------
Shares acquired:
Shares........................ 796 654 423 100 1,963 3,404
Amount........................ $ 28,051 $ 17,599 $ 4,686 $ 1,334 $ 37,814 $ 3,404
Shares received for reinvestment
of dividends:
Shares........................ 4,089 4,582 759 300 14,780 1,905
Amount........................ $138,442 $118,315 $ 8,132 $ 3,912 $ 261,166 $ 1,905
Shares redeemed:
Shares........................ (1,073) (1,135) (922) (551) (5,233) (7,713)
Amount........................ $(22,002) $(17,866) $ (9,532) $ (6,660) $ (66,788) $ (7,713)
-------- -------- -------- -------- ---------- --------
Net change:
Shares........................ 3,812 4,101 260 (151) 11,510 (2,404)
Amount........................ $144,491 $118,048 $ 3,286 $ (1,414) $ 232,192 $ (2,404)
-------- -------- -------- -------- ---------- --------
Shares end of period:
Shares........................ 25,933 30,140 14,337 5,094 65,424 73,159
Amount........................ $690,738 $605,462 $151,450 $ 61,641 $1,038,787 $ 73,159
======== ======== ======== ======== ========== ========
</TABLE>
12
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at June 30, 1998
(unaudited) consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-----------------------------------------------------
INTERMEDIATE LONG
TERM TERM GOVERNMENT MONEY
BOND BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 21,076 $ 69,535 45,767 3,698,674
Amount............. $229,105 $ 870,461 $ 482,067 $ 3,698,674
-------- ---------- --------- ------------
Shares acquired:
Shares............. 11,212 32,608 13,757 11,089,287
Amount............. $124,009 $ 440,071 $ 148,924 $ 11,089,287
Shares received for
reinvestment of
dividends:
Shares............. 1,372 4,085 1,728 71,134
Amount............. $ 14,696 $ 53,185 $ 18,282 $ 71,134
Shares redeemed:
Shares............. (3,684) (20,234) (15,763) (11,544,812)
Amount............. $(40,118) $ (245,997) $(163,607) $(11,544,812)
-------- ---------- --------- ------------
Net change:
Shares............. 8,900 16,459 (278) (384,391)
Amount............. $ 98,587 $ 247,259 $ 3,599 $ (384,391)
-------- ---------- --------- ------------
Shares end of period:
Shares............. 29,976 85,994 45,489 3,314,283
Amount............. $327,692 $1,117,720 $ 485,666 $ 3,314,283
======== ========== ========= ============
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
HIGH
INTERNATIONAL YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 469,730 306,544 1,473,001 660,074 339,706
Amount............. $15,117,468 $ 7,542,179 $54,701,619 $4,186,777 $1,900,963
----------- ----------- ----------- ---------- ----------
Shares acquired:
Shares............. 218,389 192,950 499,841 303,244 179,136
Amount............. $ 8,217,427 $ 5,553,977 $21,877,939 $2,042,440 $1,038,343
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 0 15,654
Amount............. $ 0 $ 0 $ 0 $ 0 $ 90,721
Shares redeemed:
Shares............. (69,964) (53,390) (180,695) (108,867) (63,727)
Amount............. $(1,977,458) $(1,054,122) $(5,512,846) $ (632,167) $ (348,740)
----------- ----------- ----------- ---------- ----------
Net change:
Shares............. 148,425 139,560 319,146 194,377 131,063
Amount............. $ 6,239,969 $ 4,499,855 $16,365,093 $1,410,273 $ 780,324
----------- ----------- ----------- ---------- ----------
Shares end of period:
Shares............. 618,155 446,104 1,792,147 854,451 470,769
Amount............. $21,357,437 $12,042,034 $71,066,712 $5,597,050 $2,681,287
=========== =========== =========== ========== ==========
</TABLE>
13
<PAGE> 16
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $ 76,855 $ 44,451 $ 6,969 $ 13,388 $ 76,835 $ 29,988
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)............... $ 92,008 $ 48,716 $ 7,250 $ 15,486 $ 90,699 $ 29,988
Amount due from MONY..................... 6 6 0 6 0 2
Amount due from MONY Series Fund, Inc.... 99 95 0 75 0 22
-------- -------- -------- -------- -------- --------
Total assets................... 92,113 48,817 7,250 15,567 90,699 30,012
-------- -------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY....................... 99 95 0 75 0 22
Amount due to MONY Series Fund, Inc...... 6 6 0 6 0 2
-------- -------- -------- -------- -------- --------
Total liabilities.............. 105 101 0 81 0 24
-------- -------- -------- -------- -------- --------
Net assets............................... $ 92,008 $ 48,716 $ 7,250 $ 15,486 $ 90,699 $ 29,988
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments.......... $ 77,437 $ 49,150 $ 9,371 $ 16,526 $ 68,145 $ 51,465
Cost of insurance withdrawals
(Note 3)............................ (54,612) (34,872) (13,010) (35,921) (38,650) (47,441)
Undistributed net investment income.... 27,651 19,990 9,500 27,484 41,906 25,964
Accumulated net realized gain on
investments......................... 26,379 10,183 1,108 5,299 5,434 0
Unrealized appreciation of
investments......................... 15,153 4,265 281 2,098 13,864 0
-------- -------- -------- -------- -------- --------
Net assets............................... $ 92,008 $ 48,716 $ 7,250 $ 15,486 $ 90,699 $ 29,988
======== ======== ======== ======== ======== ========
Number of units outstanding*............. 1,854 999 329 565 2,349 1,700
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*.... $ 49.62 $ 48.75 $ 22.05 $ 27.42 $ 38.61 $ 17.64
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
14
<PAGE> 17
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $17,473 $19,794 $74,583 $161,732 $1,913,302 $671,057 $3,681,762
======= ======= ======= ======== ========== ======== ==========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $ 0 $ 0 $ 0 $ 0 $2,052,887 $710,292 $3,946,212
Investments in MONY Series Fund,
Inc. at net asset value
(Note 2)......................... 17,562 20,019 76,403 161,732 0 0 0
Amount due from MONY............... 0 0 1,719 1,467 5,102 3,213 10,400
Amount due from MONY Series Fund,
Inc.............................. 9 0 80 0 0 0 0
Amount due from Enterprise
Accumulation Trust............... 0 0 0 0 913 496 1,701
------- ------- ------- -------- ---------- -------- ----------
Total assets............... 17,571 20,019 78,202 163,199 2,058,902 714,001 3,958,313
------- ------- ------- -------- ---------- -------- ----------
LIABILITIES
Amount due to MONY................. 9 0 80 0 913 496 1,701
Amount due to MONY Series Fund,
Inc.............................. 0 0 1,719 1,467 0 0 0
Amount due to Enterprise
Accumulation Trust............... 0 0 0 0 5,102 3,213 10,400
------- ------- ------- -------- ---------- -------- ----------
Total liabilities.......... 9 0 1,799 1,467 6,015 3,709 12,101
------- ------- ------- -------- ---------- -------- ----------
Net assets......................... $17,562 $20,019 $76,403 $161,732 $2,052,887 $710,292 $3,946,212
======= ======= ======= ======== ========== ======== ==========
Net assets consist of:
Contractholders' net payments.... $20,281 $21,642 $78,754 $175,095 $2,040,735 $708,755 $3,916,024
Cost of insurance withdrawals
(Note 3)....................... (3,402) (2,096) (8,382) (19,398) (214,404) (79,741) (450,151)
Undistributed net investment
income......................... 500 166 3,514 6,035 30,651 16,751 88,292
Accumulated net realized gain on
investments.................... 94 82 697 0 56,320 25,292 127,597
Unrealized appreciation of
investments.................... 89 225 1,820 0 139,585 39,235 264,450
------- ------- ------- -------- ---------- -------- ----------
Net assets......................... $17,562 $20,019 $76,403 $161,732 $2,052,887 $710,292 $3,946,212
======= ======= ======= ======== ========== ======== ==========
Number of units outstanding*....... 1,617 1,815 6,503 15,054 145,807 41,794 269,002
------- ------- ------- -------- ---------- -------- ----------
Net asset value per unit
outstanding*..................... $ 10.86 $ 11.03 $ 11.75 $ 10.74 $ 14.08 $ 17.00 $ 14.67
======= ======= ======= ======== ========== ======== ==========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)....... $238,155 $173,873
======== ========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $250,964 $174,180
Investments in MONY Series Fund,
Inc. at net asset value
(Note 2)......................... 0 0
Amount due from MONY............... 0 842
Amount due from MONY Series Fund,
Inc.............................. 0 0
Amount due from Enterprise
Accumulation Trust............... 168 47
-------- --------
Total assets............... 251,132 175,069
-------- --------
LIABILITIES
Amount due to MONY................. 168 47
Amount due to MONY Series Fund,
Inc.............................. 0 0
Amount due to Enterprise
Accumulation Trust............... 0 842
-------- --------
Total liabilities.......... 168 889
-------- --------
Net assets......................... $250,964 $174,180
======== ========
Net assets consist of:
Contractholders' net payments.... $256,585 $179,957
Cost of insurance withdrawals
(Note 3)....................... (30,056) (17,979)
Undistributed net investment
income......................... 3,708 9,033
Accumulated net realized gain on
investments.................... 7,918 2,862
Unrealized appreciation of
investments.................... 12,809 307
-------- --------
Net assets......................... $250,964 $174,180
======== ========
Number of units outstanding*....... 21,151 14,644
-------- --------
Net asset value per unit
outstanding*..................... $ 11.87 $ 11.89
======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
15
<PAGE> 18
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income........................... $13,809 $ 7,362 $ 369 $ 844 $19,262 $ 775
Mortality and expense risk charges
(Note 3)................................ (254) (139) (21) (45) (254) (89)
------- ------- ----- ----- ------- -------
Net investment income..................... 13,555 7,223 348 799 19,008 686
------- ------- ----- ----- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales..................... 3,974 2,495 264 539 1,997 1,385
Cost of shares sold..................... (2,422) (1,923) (246) (477) (1,271) (1,385)
------- ------- ----- ----- ------- -------
Net realized gain on investments.......... 1,552 572 18 62 726 0
Net decrease in unrealized appreciation of
investments............................. (3,963) (3,920) (138) (93) (8,913) 0
------- ------- ----- ----- ------- -------
Net realized and unrealized loss on
investments............................. (2,411) (3,348) (120) (31) (8,187) 0
------- ------- ----- ----- ------- -------
Net increase in net assets resulting from
operations.............................. $11,144 $ 3,875 $ 228 $ 768 $10,821 $ 686
======= ======= ===== ===== ======= =======
</TABLE>
See notes to financial statements.
16
<PAGE> 19
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income................................. $ 587 $ 199 $ 2,834 $ 3,526 $ 0 $ 0
Mortality and expense risk charges (Note 3)..... (55) (33) (210) (504) (5,918) (1,631)
------- ------- -------- ----------- --------- --------
Net investment income (loss).................... 532 166 2,624 3,022 (5,918) (1,631)
------- ------- -------- ----------- --------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales........................... 2,807 1,937 14,654 1,370,505 196,309 81,066
Cost of shares sold........................... (2,745) (1,882) (13,915) (1,370,505) (172,752) (67,067)
------- ------- -------- ----------- --------- --------
Net realized gain on investments................ 62 55 739 0 23,557 13,999
Net increase (decrease) in unrealized
appreciation of investments................... (213) 148 (482) 0 138,905 38,642
------- ------- -------- ----------- --------- --------
Net realized and unrealized gain (loss) on
investments................................... (151) 203 257 0 162,462 52,641
------- ------- -------- ----------- --------- --------
Net increase in net assets resulting from
operations.................................... $ 381 $ 369 $ 2,881 $ 3,022 $ 156,544 $ 51,010
======= ======= ======== =========== ========= ========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------
<S> <C> <C> <C>
Dividend income................................. $ 0 $ 0 $ 5,163
Mortality and expense risk charges (Note 3)..... (11,726) (773) (499)
--------- -------- --------
Net investment income (loss).................... (11,726) (773) 4,664
--------- -------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales........................... 405,759 43,043 17,661
Cost of shares sold........................... (332,978) (41,595) (16,490)
--------- -------- --------
Net realized gain on investments................ 72,781 1,448 1,171
Net increase (decrease) in unrealized
appreciation of investments................... 261,151 23,027 (942)
--------- -------- --------
Net realized and unrealized gain (loss) on
investments................................... 333,932 24,475 229
--------- -------- --------
Net increase in net assets resulting from
operations.................................... $ 322,206 $ 23,702 $ 4,893
========= ======== ========
</TABLE>
See notes to financial statements.
17
<PAGE> 20
MONY AMERICA
Variable Account L
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life
-------------------------------------------------------
Money
Market Intermediate Long Term Government
Subaccount Subaccount Subaccount Subaccount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4) ........................................... $188,214 $153,026 $177,441 $474,317
============ ============ ============ ============
Investments in MONY Series Fund, Inc. at net asset value (Note 2) ...... $188,214 $149,542 $177,161 $464,833
------------ ------------ ------------ ------------
Net assets ............................................................. $188,214 $149,542 $177,161 $464,833
============ ============ ============ ============
Net assets consist of:
Contractholders' net payments ........................................ $247,915 $147,697 $171,508 $462,543
Cost of insurance and mortality & expense risk withdrawals (Note 3) .. (87,118) (2,267) (2,377) (6,520)
Undistributed net investment income .................................. 27,417 7,643 8,348 18,492
Accumulated net realized loss on investments ......................... 0 (47) (38) (198)
Unrealized depreciation of investments ............................... 0 (3,484) (280) (9,484)
------------ ------------ ------------ ------------
Net assets ............................................................. $188,214 $149,542 $177,161 $464,833
============ ============ ============ ============
Number of units outstanding* ........................................... 18,063 14,546 16,805 45,526
------------ ------------ ------------ ------------
Net asset value per unit outstanding* .................................. $10.42 $10.28 $10.54 $10.21
============ ============ ============ ============
</TABLE>
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
<PAGE> 21
MONY AMERICA
Variable Account L
STATEMENTS OF ASSETS AND LIABILITIES (continued)
June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
------------------------------------------------------------
International High Yield
Equity Small Cap Managed Growth Bond
Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4) ..................................... $20,399 $405,930 $816,018 $204,491 $366,620
========== ========== ========== ========== ==========
Investments in Enterprise Accumulation Trust at net asset value
(Note 2) ....................................................... $23,508 $425,854 $842,584 $216,299 $364,888
---------- ---------- ---------- ---------- ----------
Net assets ....................................................... $23,508 $425,854 $842,584 $216,299 $364,888
========== ========== ========== ========== ==========
Net assets consist of:
Contractholders' net payments .................................. $16,329 $392,245 $808,663 $204,939 $360,773
Cost of insurance and mortality & expense risk withdrawals
(Note 3) ....................................................... (2,388) (6,220) (12,757) (3,810) (4,821)
Undistributed net investment income ............................ 431 17,837 19,108 3,248 10,545
Accumulated net realized gain on investments ................... 6,027 2,068 1,004 114 123
Unrealized appreciation (depreciation) of investments .......... 3,109 19,924 26,566 11,808 (1,732)
---------- ---------- ---------- ---------- ----------
Net assets ....................................................... $23,508 $425,854 $842,584 $216,299 $364,888
========== ========== ========== ========== ==========
Number of units outstanding* ..................................... 1,938 33,047 72,089 20,990 33,046
---------- ---------- ---------- ---------- ----------
Net asset value per unit outstanding* ............................ $12.13 $12.89 $11.69 $10.31 $11.04
========== ========== ========== ========== ==========
</TABLE>
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
<PAGE> 22
MONY AMERICA
Variable Account L
STATEMENTS OF ASSETS AND LIABILITIES (continued)
June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
-----------------------------------------------------
Capital Small Company Stock Hard
Appreciation Stock Index Assets
Subaccount Subaccount Subaccount Subaccount
------------ ------------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............................................ $343,762 $152,217 $1,662,342 $164
============ ============= ========== ==========
Investments in Dreyfus at net asset value (Note 2)...................... $380,118 $153,581 $1,868,577 $0
Investments in Van Eck Worldwide Trust at net asset value (Note 2)...... 0 0 0 170
------------ ------------- ---------- ----------
Net assets.............................................................. $380,118 $153,581 $1,868,577 $170
============ ============= ========== ==========
Net assets consist of:
Contractholders' net payments......................................... $346,490 $153,325 $1,665,530 $164
Cost of insurance and mortality & expense risk withdrawals (Note 3)... (4,726) (1,872) (27,967) 0
Undistributed net investment income .................................. 1,367 362 15,183 0
Accumulated net realized gain (loss) on investments................... 631 40 9,596 0
Unrealized appreciation (depreciation) of investments................. 36,356 1,726 206,235 0
------------ ------------- ---------- ----------
Net assets.............................................................. $380,118 $153,581 $1,868,577 $164
============ ============= ========== ==========
Number of units outstanding*............................................ 31,330 15,298 152,546 16
------------ ------------- ---------- ----------
Net asset value per unit outstanding*................................... $12.13 $10.04 $12.25 $10.39
============ ============= ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable
Universal Life (continued)
------------------------------
Worldwide Worldwide
Bond Emerging Markets
Subaccount Subaccount
---------- ----------------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)............................................ $11,486 $19,586
========== ================
Investments in Dreyfus at net asset value (Note 2)...................... $0 $0
Investments in Van Eck Worldwide Trust at net asset value (Note 2)...... 11,703 12,532
---------- ----------------
Net assets.............................................................. $11,703 $12,532
========== ================
Net assets consist of:
Contractholders' net payments......................................... $11,650 $20,797
Cost of insurance and mortality & expense risk withdrawals (Note 3)... (166) (1,067)
Undistributed net investment income .................................. 0 197
Accumulated net realized gain (loss) on investments................... 2 (341)
Unrealized appreciation (depreciation) of investments................. 217 (7,054)
---------- ----------------
Net assets.............................................................. $11,703 $12,532
========== ================
Number of units outstanding*............................................ 1,149 2,304
---------- ----------------
Net asset value per unit outstanding*................................... $10.19 $5.44
========== ================
</TABLE>
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
<PAGE> 23
MONY AMERICA
Variable Account L
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life
------------------------------------------------------------------------
Money
Market Intermediate Long Term Government
Subaccount Subaccount Subaccount Subaccount
------------ ------------------ ------------------ ------------------
For the six For the period For the period For the period
months ended January 23, 1998 * January 23, 1998 * February 9, 1998 *
June 30, through through through
1998 June 30, 1998 June 30, 1998 June 30, 1998
------------ ------------------ ------------------ ------------------
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
Dividend income.......................................... $14,429 $7,643 $8,348 $18,492
------------ ------------------ ------------------ ------------------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales.................................... 4,659,740 2,291 2,406 8,626
Cost of shares sold.................................... (4,659,740) (2,338) (2,444) (8,824)
------------ ------------------ ------------------ ------------------
Net realized loss on investments......................... 0 (47) (38) (198)
Net decrease in unrealized appreciation of investments... 0 (3,484) (280) (9,484)
------------ ------------------ ------------------ ------------------
Net realized and unrealized loss on investments.......... 0 (3,531) (318) (9,682)
------------ ------------------ ------------------ ------------------
Net increase in net assets resulting from operations.... $14,429 $4,112 $8,030 $8,810
============ ================== ================== ==================
</TABLE>
* Commencement of operations.
See notes to financial statements.
<PAGE> 24
MONY AMERICA
Variable Account L
STATEMENTS OF OPERATIONS (continued)
For the six months ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
-----------------------------------------------------------------
International High Yield
Equity Small Cap Managed Growth Bond
Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income........................................... $0 $0 $0 $0 $8,739
---------- ---------- ---------- ------------- ----------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales..................................... 43,272 16,258 11,796 13,777 4,414
Cost of shares sold..................................... (37,286) (14,358) (10,932) (13,603) (4,308)
---------- ---------- ---------- ------------- ----------
Net realized gain on investments.......................... 5,986 1,900 864 174 106
Net increase (decrease) in unrealized appreciation of
investments............................................. 2,859 30,931 43,236 14,737 (1,108)
---------- ---------- ---------- ------------- ----------
Net realized and unrealized gain (loss) on investments.... 8,845 32,831 44,100 14,911 (1,002)
---------- ---------- ---------- ------------- ----------
Net increase in net assets resulting from operations...... $8,845 $32,831 $44,100 $14,911 $7,737
========== ========== ========== ============= ==========
</TABLE>
See notes to financial statements.
<PAGE> 25
MONY AMERICA
Variable Account L
STATEMENTS OF OPERATIONS (continued)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
-----------------------------------------------------
Capital Small Company Stock
Appreciation Stock Index
Subaccount Subaccount Subaccount
------------ ------------------- ------------
For the six For the period For the six
months ended February 13, 1998 * months ended
June 30, through June 30,
1998 June 30, 1998 1998
------------ ------------------- ------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C>
Dividend income...................................................... $72 $362 $14,687
------------ ------------------- ------------
Realized and unrealized gain (loss) on investments (Note 2):
Proceeds from sales................................................ 5,465 2,555 73,690
Cost of shares sold................................................ (4,825) (2,515) (64,108)
------------ ------------------- ------------
Net realized gain (loss) on investments.............................. 640 40 9,582
Net increase (decrease) in unrealized appreciation of investments.... 37,783 1,726 206,181
------------ ------------------- ------------
Net realized and unrealized gain (loss) on investments............... 38,423 1,766 215,763
------------ ------------------- ------------
Net increase (decrease) in net assets resulting from operations...... $38,495 $2,128 $230,450
============ =================== ============
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
-----------------------------------------------------------
Hard Worldwide Worldwide
Assets Bond Emerging Markets
Subaccount Subaccount Subaccount
--------------- ------------------- ----------------
For the period For the period For the six
June 15, 1998 * February 13, 1998 * months ended
through through June 30,
June 30, 1998 June 30, 1998 1998
--------------- ------------------- ----------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C>
Dividend income...................................................... $0 $0 $197
--------------- ------------------- ----------------
Realized and unrealized gain (loss) on investments (Note 2):
Proceeds from sales................................................ 0 230 606
Cost of shares sold................................................ 0 (228) (886)
--------------- ------------------- ----------------
Net realized gain (loss) on investments.............................. 0 2 (280)
Net increase (decrease) in unrealized appreciation of investments.... 6 217 (3,134)
--------------- ------------------- ----------------
Net realized and unrealized gain (loss) on investments............... 6 219 (3,414)
--------------- ------------------- ----------------
Net increase (decrease) in net assets resulting from operations...... $6 $219 ($3,217)
=============== =================== ================
</TABLE>
* Commencement of operations.
See notes to financial statements.
<PAGE> 26
MONY AMERICA
Variable Account L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life
-------------------------------------------
Money
Market
Subaccount
-------------------------------------------
For the six For the period
months ended July 10, 1997**
June 30, through
1998 December 31, 1997
-------------------------------------------
(unaudited)
<S> <C> <C>
From operations:
Net investment income ........................................ $14,429 $12,988
Net realized loss on investments.............................. 0 0
Net decrease in unrealized appreciation of investments........ 0 0
------------ -----------------
Net increase in net assets resulting from operations............ 14,429 12,988
------------ -----------------
From unit transactions:
Net proceeds from the issuance of units....................... 3,152,055 1,961,819
Net asset value of units redeemed or used to meet contract
obligations................................................. (3,822,125) (1,130,952)
------------ -----------------
Net increase (decrease) from unit transactions.................. (670,070) 830,867
------------ -----------------
Net increase (decrease) in net assets........................... (655,641) 843,855
Net assets beginning of period.................................. 843,855 0
------------ -----------------
Net assets end of period*....................................... $188,214 $843,855
============ =================
Units outstanding beginning of period........................... 83,085 0
Units issued during the period.................................. 216,714 194,816
Units redeemed during the period................................ (281,736) (111,731)
------------ -----------------
Units outstanding end of period................................. 18,063 83,085
============ =================
*Includes undistributed net investment income of: $27,417 $12,988
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life
-------------------- -------------------- --------------------
Intermediate Long Term Governmnet
Subaccount Subaccount Subaccount
-------------------- -------------------- --------------------
For the period For the period For the period
January 23, 1998 ** January 23, 1998 ** February 9, 1998 **
through through through
June 30, 1998 June 30, 1998 June 30, 1998
-------------------- -------------------- --------------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C>
From operations:
Net investment income ........................................ $7,643 $8,348 $18,492
Net realized loss on investments.............................. (47) (38) (198)
Net decrease in unrealized appreciation of investments........ (3,484) (280) (9,484)
-------------------- -------------------- --------------------
Net increase in net assets resulting from operations............ 4,112 8,030 8,810
-------------------- -------------------- --------------------
From unit transactions:
Net proceeds from the issuance of units....................... 147,721 170,603 462,473
Net asset value of units redeemed or used to meet contract
obligations................................................. (2,291) (1,472) (6,450)
-------------------- -------------------- --------------------
Net increase (decrease) from unit transactions.................. 145,430 169,131 456,023
-------------------- -------------------- --------------------
Net increase (decrease) in net assets........................... 149,542 177,161 464,833
Net assets beginning of period.................................. 0 0 0
-------------------- -------------------- --------------------
Net assets end of period*....................................... $149,542 $177,161 $464,833
==================== ==================== ====================
Units outstanding beginning of period........................... 0 0 0
Units issued during the period.................................. 14,773 17,041 46,197
Units redeemed during the period................................ (227) (236) (671)
-------------------- -------------------- --------------------
Units outstanding end of period................................. 14,546 16,805 45,526
==================== ==================== ====================
*Includes undistributed net investment income of: $7,643 $8,348 $18,492
</TABLE>
** Commencement of operations.
See notes to financial statements.
<PAGE> 27
MONY AMERICA
Variable Account L
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life
-------------------------------------------
Equity
Subaccount
-------------------------------------------
For the six For the period
months ended July 10, 1997**
June 30, through
1998 December 31, 1997
-------------------------------------------
(unaudited)
<S> <C> <C>
From operations:
Net investment income ....................................... $0 $431
Net realized gain (loss) on investments...................... 5,986 41
Net increase (decrease) in unrealized appreciation of
investments................................................ 2,859 250
--------------------------------
Net increase in net assets resulting from operations........... 8,845 722
--------------------------------
From unit transactions:
Net proceeds from the issuance of units...................... 43,161 13,447
Net asset value of units redeemed or used to meet contract
obligations................................................ (41,498) (1,169)
--------------------------------
Net increase from unit transactions............................ 1,663 12,278
--------------------------------
Net increase in net assets..................................... 10,508 13,000
Net assets beginning of period................................. 13,000 0
--------------------------------
Net assets end of period*...................................... $23,508 $13,000
================================
Units outstanding beginning of period.......................... 1,232 0
Units issued during the period................................. 4,228 1,345
Units redeemed during the period............................... (3,522) (113)
--------------------------------
Units outstanding end of period................................ 1,938 1,232
================================
*Includes undistributed net investment income of: $431 $431
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
-------------------------------- ---------------------------------
Small Cap Managed
Subaccount Subaccount
-------------------------------- ---------------------------------
For the six For the period For the six For the period
months ended July 10, 1997** months ended July 10, 1997**
June 30, through June 30, through
1998 December 31, 1997 1998 December 31, 1997
-------------------------------- ---------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
From operations:
Net investment income ....................................... $0 $17,837 $0 $19,108
Net realized gain (loss) on investments...................... 1,900 168 864 140
Net increase (decrease) in unrealized appreciation of
investments................................................ 30,931 (11,007) 43,236 (16,670)
-------------------------------- ---------------------------------
Net increase in net assets resulting from operations........... 32,831 6,998 44,100 2,578
-------------------------------- ---------------------------------
From unit transactions:
Net proceeds from the issuance of units...................... 198,926 205,099 387,542 423,645
Net asset value of units redeemed or used to meet contract
obligations................................................ (15,628) (2,372) (10,688) (4,593)
-------------------------------- ---------------------------------
Net increase from unit transactions............................ 183,298 202,727 376,854 419,052
-------------------------------- ---------------------------------
Net increase in net assets..................................... 216,129 209,725 420,954 421,630
Net assets beginning of period................................. 209,725 0 421,630 0
-------------------------------- ---------------------------------
Net assets end of period*...................................... $425,854 $209,725 $842,584 $421,630
================================ =================================
Units outstanding beginning of period.......................... 18,628 0 40,391 0
Units issued during the period................................. 15,656 18,848 32,642 40,836
Units redeemed during the period............................... (1,237) (220) (944) (445)
-------------------------------- ---------------------------------
Units outstanding end of period................................ 33,047 18,628 72,089 40,391
================================ =================================
*Includes undistributed net investment income of: $17,837 $17,837 $19,108 $19,108
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
----------------------------------- --------------------------------
International High Yield
Growth Bond
Subaccount Subaccount
----------------------------------- --------------------------------
For the six For the period For the six For the period
months ended July 10, 1997** months ended July 10, 1997**
June 30, through June 30, through
1998 December 31, 1997 1998 December 31, 1997
----------------------------------- --------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
From operations:
Net investment income ..................................... $0 $3,248 $8,739 $1,806
Net realized gain (loss) on investments.................... 174 (60) 106 17
Net increase (decrease) in unrealized appreciation of
investments.............................................. 14,737 (2,929) (1,108) (624)
----------------------------------- --------------------------------
Net increase in net assets resulting from operations......... 14,911 259 7,737 1,199
----------------------------------- --------------------------------
From unit transactions:
Net proceeds from the issuance of units.................... 104,971 110,383 204,264 157,186
Net asset value of units redeemed or used to meet contract
obligations.............................................. (13,429) (796) (3,938) (1,560)
----------------------------------- --------------------------------
Net increase from unit transactions.......................... 91,542 109,587 200,326 155,626
----------------------------------- --------------------------------
Net increase in net assets................................... 106,453 109,587 208,063 156,825
Net assets beginning of period............................... 109,846 0 156,825 0
----------------------------------- --------------------------------
Net assets end of period*.................................... $216,299 $109,846 $364,888 $156,825
=================================== ================================
Units outstanding beginning of period........................ 12,091 0 14,882 0
Units issued during the period............................... 10,191 12,113 18,530 15,033
Units redeemed during the period............................. (1,292) (22) (366) (151)
----------------------------------- --------------------------------
Units outstanding end of period.............................. 20,990 12,091 33,046 14,882
=================================== ================================
*Includes undistributed net investment income of: $3,248 $3,248 $10,545 $1,806
</TABLE>
**Commencement of operations.
See notes to financial statements.
<PAGE> 28
MONY AMERICA
Variable Account L
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
------------------------------------ --------------------
Capital Small Company
Appreciation Stock
Subaccount Subaccount
------------------------------------ --------------------
For the six For the period For the period
months ended July 10, 1997** February 13, 1998 **
June 30, through through
1998 December 31, 1997 June 30, 1998
------------------------------------ --------------------
(unaudited) (unaudited)
<S> <C> <C> <C>
From operations:
Net investment income................................... $72 $1,295 $362
Net realized gain (loss) on investments................. 640 (9) 40
Net increase (decrease) in unrealized appreciation of
investments........................................... 37,783 (1,427) 1,726
------------ ------------------ --------------------
Net increase (decrease) in net assets resulting from
operations.............................................. 38,495 (141) 2,128
------------ ------------------ --------------------
From unit transactions:
Net proceeds from the issuance of units................. 190,511 157,623 153,382
Net asset value of units redeemed or used to meet
contract obligations.................................. (4,844) (1,526) (1,929)
------------ ------------------ --------------------
Net increase from unit transactions....................... 185,667 156,097 151,453
------------ ------------------ --------------------
Net increase in net assets................................ 224,162 155,956 153,581
Net assets beginning of period............................ 155,956 0 0
------------ ------------------ --------------------
Net assets end of period*................................. $380,118 $155,956 $153,581
============ ================== ====================
Units outstanding beginning of period..................... 15,519 0 0
Units issued during the period............................ 16,251 15,672 15,485
Units redeemed during the period.......................... (440) (153) (187)
------------ ------------------ --------------------
Units outstanding end of period........................... 31,330 15,519 15,298
============ ================== ====================
*Includes undistributed net investment income of: $1,367 $1,295 $362
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
--------------------------------- ---------------
Stock Hard
Index Assets
Subaccount Subaccount
--------------------------------- ---------------
For the six For the period For the period
months ended July 10, 1997** June 15, 1998**
June 30, through through
1998 December 31, 1997 June 30, 1998
--------------------------------- ---------------
(unaudited) (unaudited)
<S> <C> <C> <C>
From operations:
Net investment income................................... $14,687 $496 $0
Net realized gain (loss) on investments................. 9,582 14 0
Net increase (decrease) in unrealized appreciation of
investments........................................... 206,181 54 6
------------ ----------------- ---------------
Net increase (decrease) in net assets resulting from
operations.............................................. 230,450 564 6
------------ ----------------- ---------------
From unit transactions:
Net proceeds from the issuance of units................. 1,695,266 13,566 164
Net asset value of units redeemed or used to meet
contract obligations.................................. (70,108) (1,161) 0
------------ ----------------- ---------------
Net increase from unit transactions....................... 1,625,158 12,405 164
------------ ----------------- ---------------
Net increase in net assets................................ 1,855,608 12,969 170
Net assets beginning of period............................ 12,969 0 0
------------ ----------------- ---------------
Net assets end of period*................................. $1,868,577 $12,969 $170
============ ================= ===============
Units outstanding beginning of period..................... 1,244 0 0
Units issued during the period............................ 157,077 1,357 16
Units redeemed during the period.......................... (5,775) (113) 0
------------ ----------------- ---------------
Units outstanding end of period........................... 152,546 1,244 16
============ ================= ===============
*Includes undistributed net investment income of: $15,183 $496 $0
</TABLE>
<TABLE>
<CAPTION>
Corporate Sponsored Variable Universal Life (continued)
-------------------- ---------------------------------
Worldwide Worldwide
Bond Emerging Markets
Subaccount Subaccount
-------------------- ---------------------------------
For the period For the six For the period
February 13, 1998 ** months ended July 10, 1997**
through June 30, through
June 30, 1998 1998 December 31, 1997
-------------------- ---------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C>
From operations:
Net investment income................................... $0 $197 $0
Net realized gain (loss) on investments................. 2 (280) (61)
Net increase (decrease) in unrealized appreciation of
investments........................................... 217 (3,134) (3,920)
-------------------- ------------ -----------------
Net increase (decrease) in net assets resulting from
operations.............................................. 219 (3,217) (3,981)
-------------------- ------------ -----------------
From unit transactions:
Net proceeds from the issuance of units................. 11,655 3,476 17,333
Net asset value of units redeemed or used to meet
contract obligations.................................. (171) (606) (473)
-------------------- ------------ -----------------
Net increase from unit transactions....................... 11,484 2,870 16,860
-------------------- ------------ -----------------
Net increase in net assets................................ 11,703 (347) 12,879
Net assets beginning of period............................ 0 12,879 0
-------------------- ------------ -----------------
Net assets end of period*................................. $11,703 $12,532 $12,879
==================== ============ =================
Units outstanding beginning of period..................... 0 1,829 0
Units issued during the period............................ 1,166 1,069 1,883
Units redeemed during the period.......................... (17) (594) (54)
-------------------- ------------ -----------------
Units outstanding end of period........................... 1,149 2,304 1,829
==================== ============ =================
*Includes undistributed net investment income of: $0 $197 $0
</TABLE>
**Commencement of operations.
See notes to financial statements.
<PAGE> 29
MONY AMERICA
Variable Account L
NOTES TO FINANCIAL STATEMENTS
1. Organization and Business
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the Investment
Company Act of 1940 (the "1940 Act"). The Variable Account holds assets that are
segregated from all of MONY America's other assets and, at present, is used to
support Flexible Premium Variable Life Insurance Policies, which include
Variable Life Insurance (Strategist), Variable Universal Life (MONYEquity
Master) and Corporate Sponsored Variable Life Insurance Policies. These policies
are issued by MONY America, which is a wholly-owned subsidiary of The Mutual
Life Insurance Company of New York ("MONY"). For presentation purposes, the
information related only to the Corporate Sponsored Variable Universal Life
Insurance Policies are presented here.
There are currently fifteen Corporate Sponsored Variable Universal Subaccounts
within the Variable Account, each invests only in a corresponding portfolio of
the MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), the Dreyfus Investment Fund ("Dreyfus Fund"), the Dreyfus Stock
Index Fund ("Dreyfus Index Fund"), and the Van Eck Insurance Trust ("Van Eck
Trust") (collectively, the Funds"). The subaccounts of the Corporate Sponsored
Variable Universal Life commenced operations during 1997 and 1998. The Funds are
registered under the 1940 Act as open end, diversified, management investment
companies.
A full presentation of the related financial statements and footnotes of the
Funds are contained on pages hereinafter and should be read in conjunction with
these financial statements.
2. Significant Accounting Policies
Investment:
The investment in shares of each of the respective portfolios is stated at value
which is the net asset values of the Funds. Except for the Money Market
Portfolios, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolios, the net asset values are based on amortized cost of the securities
held which approximates value.
<PAGE> 30
MONY AMERICA
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
Taxes:
MONY America is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY America does not expect,
based on current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for federal income tax purposes.
3. Related Party Transactions
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account represent
gross policy premiums recorded by MONY America less deductions retained as
compensation for certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, mortality and expense risk charge
and, if applicable, the cost of any optional benefits added by riders are
deducted on each monthly date from the cash value of the contract to compensate
MONY America. These deductions are treated as contractholder redemptions by the
Variable Account. The amount deducted for the Corporate Sponsored Variable Life
Subaccounts for 1998 aggregated $118,369.
As investment adviser to the Fund, MONY America receives amounts paid by the
Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts as
investment adviser to Enterprise, and it receives amounts paid by Enterprise for
those services.
<PAGE> 31
MONY AMERICA
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investments
Investments in Corporate Sponsored Variable Universal Life at cost, at June
30, 1998 (unaudited) consist of the following:
<TABLE>
<CAPTION>
-------------- -------------- --------------- ---------------
Money
Market Intermediate Long Term Government
Subaccount Subaccount Subaccount Subaccount
============== ============== =============== ===============
<S> <C> <C> <C> <C>
Shares beginning of period:
Shares ................................... 843,855 0 0 0
Amount ................................... $843,855 $0 $0 $0
-------------- -------------- --------------- ---------------
Shares acquired:
Shares ................................... 3,989,670 13,189 12,584 42,256
Amount ................................... $3,989,670 $147,721 $171,537 $464,649
Shares received for
reinvestment
of dividends:
Shares ................................... 14,429 714 641 1,748
Amount ................................... $14,429 $7,643 $8,348 $18,492
Shares redeemed:
Shares ................................... (4,659,740) (209) (179) (804)
Amount ................................... ($4,659,740) ($2,338) ($2,444) ($8,824)
-------------- -------------- --------------- ---------------
Net change:
Shares ................................... (655,641) 13,694 13,046 43,200
Amount ................................... ($655,641) $153,026 $177,441 $474,317
-------------- -------------- --------------- ---------------
Shares end of period:
Shares ................................... 188,214 13,694 13,046 43,200
Amount ................................... $188,214 $153,026 $177,441 $474,317
============== ============== =============== ===============
</TABLE>
<PAGE> 32
MONY AMERICA
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investments (continued)
Investments in Corporate Sponsored Variable Universal Life at cost, at June
30, 1998 (unaudited) consist of the following:
<TABLE>
<CAPTION>
-------------- -------------- --------------- --------------- ------------
International High Yield
Equity Small Cap Managed Growth Bond
Subaccount Subaccount Subaccount Subaccount Subaccount
============== ============== =============== =============== ============
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares ................................... 370 7,855 10,339 17,774 27,465
Amount ................................... $12,750 $220,732 $438,300 $112,775 $157,449
-------------- -------------- --------------- --------------- ------------
Shares acquired:
Shares ................................... 1,321 6,624 8,381 15,032 35,136
Amount ................................... $44,935 $199,556 $388,650 $105,319 $204,740
Shares received for
reinvestment
of dividends:
Shares ................................... 0 0 0 0 1,510
Amount ................................... $0 $0 $0 $0 $8,739
Shares redeemed:
Shares ................................... (1,093) (544) (267) (1,950) (762)
Amount ................................... ($37,286) ($14,358) ($10,932) ($13,603) ($4,308)
-------------- -------------- --------------- --------------- ------------
Net change:
Shares ................................... 228 6,080 8,114 13,082 35,884
Amount ................................... $7,649 $185,198 $377,718 $91,716 $209,171
-------------- -------------- --------------- --------------- ------------
Shares end of period:
Shares ................................... 598 13,935 18,453 30,856 63,349
Amount ................................... $20,399 $405,930 $816,018 $204,491 $366,620
============== ============== =============== =============== ============
</TABLE>
<PAGE> 33
MONY AMERICA
Variable Account L
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investments (continued)
Investments in Corporate Sponsored Variable Universal Life at cost, at June
30, 1998 (unaudited) consist of the following:
<TABLE>
<CAPTION>
------------ ------------- ------------ ---------- ------------ ----------------
Capital Small Company Stock Hard Worldwide Worldwide
Appreciation Stock Index Assets Bond Emerging Markets
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
============ ============= ============ ========== ============ ================
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares ......................... 5,590 0 503 0 0 1,171
Amount ......................... $157,383 $0 $12,915 $0 $0 $16,799
------------ ------------- ------------ ---------- ------------ ----------------
Shares acquired:
Shares ....................... 5,870 9,392 63,775 15 1,060 367
Amount ....................... $191,132 $154,370 $1,698,848 $164 $11,714 $3,476
Shares received for
reinvestment
of dividends:
Shares ....................... 2 21 494 0 0 20
Amount ....................... $72 $362 $14,687 $0 $0 $197
Shares redeemed:
Shares ....................... (172) (151) (2,528) 0 (21) (57)
Amount ....................... ($4,825) ($2,515) ($64,108) $0 ($228) ($886)
------------ ------------- ------------ ---------- ------------ ----------------
Net change:
Shares ....................... 5,700 9,262 61,741 15 1,039 330
Amount ....................... $186,379 $152,217 $1,649,427 $164 $11,486 $2,778
------------ ------------- ------------ ---------- ------------ ----------------
Shares end of period:
Shares ....................... 11,290 9,262 62,244 15 1,039 1,501
Amount ....................... $343,762 $152,217 $1,662,342 $164 $11,486 $19,586
============ ============= ============ ========== ============ ================
</TABLE>
<PAGE> 34
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------
EQUITY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.......... $13,555 $ 4,971 $ 7,223 $ 3,937
Net realized gain on
investments.................. 1,552 5,544 572 3,331
Net increase (decrease) in
unrealized appreciation of
investments.................. (3,963) 7,657 (3,920) 3,274
------- -------- ------- --------
Net increase in net assets
resulting from operations...... 11,144 18,172 3,875 10,542
------- -------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 4,457 15,902 3,852 10,731
Net asset value of units
redeemed or used to meet
contract obligations......... (2,421) (13,078) (2,076) (11,293)
------- -------- ------- --------
Net increase (decrease) from unit
transactions................... 2,036 2,824 1,776 (562)
------- -------- ------- --------
Net increase (decrease) in net
assets......................... 13,180 20,996 5,651 9,980
Net assets beginning of period... 78,828 57,832 43,065 33,085
------- -------- ------- --------
Net assets end of period*........ $92,008 $ 78,828 $48,716 $ 43,065
======= ======== ======= ========
Units outstanding beginning of
period......................... 1,811 1,726 962 965
Units issued during the period... 96 428 82 282
Units redeemed during the
period......................... (53) (343) (45) (285)
------- -------- ------- --------
Units outstanding end of
period......................... 1,854 1,811 999 962
======= ======== ======= ========
- ---------------
* Includes undistributed net
investment income of: $27,651 $ 14,096 $19,990 $ 12,767
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------
INTERMEDIATE TERM LONG TERM
BOND SUBACCOUNT BOND SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 348 $ 343 $ 799 $ 752
Net realized gain on
investments.................. 18 27 62 66
Net increase (decrease) in
unrealized appreciation of
investments.................. (138) 97 (93) 884
------ ------ ------- -------
Net increase in net assets
resulting from operations...... 228 467 768 1,702
------ ------ ------- -------
From unit transactions:
Net proceeds from the issuance
of units..................... 204 407 327 618
Net asset value of units
redeemed or used to meet
contract obligations......... (243) (463) (494) (1,039)
------ ------ ------- -------
Net increase (decrease) from unit
transactions................... (39) (56) (167) (421)
------ ------ ------- -------
Net increase (decrease) in net
assets......................... 189 411 601 1,281
Net assets beginning of period... 7,061 6,650 14,885 13,604
------ ------ ------- -------
Net assets end of period*........ $7,250 $7,061 $15,486 $14,885
====== ====== ======= =======
Units outstanding beginning of
period......................... 331 333 571 588
Units issued during the period... 9 20 12 26
Units redeemed during the
period......................... (11) (22) (18) (43)
------ ------ ------- -------
Units outstanding end of
period......................... 329 331 565 571
====== ====== ======= =======
- ---------------
* Includes undistributed net
investment income of: $9,500 $9,152 $27,484 $26,685
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------
DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT BOND SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.......... $19,008 $ 5,074 $ 686 $ 1,394
Net realized gain on
investments.................. 726 1,485 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................. (8,913) 9,311 0 0
------- ------- ------- -------
Net increase in net assets
resulting from operations...... 10,821 15,870 686 1,394
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units..................... 1,148 2,162 122 967
Net asset value of units
redeemed or used to meet
contract obligations......... (1,743) (3,376) (1,292) (2,652)
------- ------- ------- -------
Net increase (decrease) from unit
transactions................... (595) (1,214) (1,170) (1,685)
------- ------- ------- -------
Net increase (decrease) in net
assets......................... 10,226 14,656 (484) (291)
Net assets beginning of period... 80,473 65,817 30,472 30,763
------- ------- ------- -------
Net assets end of period*........ $90,699 $80,473 $29,988 $30,472
======= ======= ======= =======
Units outstanding beginning of
period......................... 2,366 2,404 1,767 1,867
Units issued during the period... 31 69 7 59
Units redeemed during the
period......................... (48) (107) (74) (159)
------- ------- ------- -------
Units outstanding end of
period......................... 2,349 2,366 1,700 1,767
======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $41,906 $22,898 $25,964 $25,278
</TABLE>
See notes to financial statements.
18
<PAGE> 35
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE TERM LONG TERM
SECURITIES BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- --------------------------- ---------------------------
FOR THE PERIOD
FOR THE SIX MARCH 24, FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED 1997** THROUGH MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ -------------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 532 $ (32) $ 166 $ 0 $ 2,624 $ 892
Net realized gain (loss) on
investments.................... 62 32 55 27 739 (42)
Net increase (decrease) in
unrealized appreciation of
investments.................... (213) 302 148 77 (482) 2,367
------- ------- ------- ------ -------- -------
Net increase in net assets
resulting from operations........ 381 302 369 104 2,881 3,217
------- ------- ------- ------ -------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 6,412 13,868 19,107 2,923 43,307 28,471
Net asset value of units redeemed
or used to meet contract
obligations.................... (2,302) (1,099) (1,710) (813) (11,360) (2,195)
------- ------- ------- ------ -------- -------
Net increase (decrease) from unit
transactions..................... 4,110 12,769 17,397 2,110 31,947 26,276
------- ------- ------- ------ -------- -------
Net increase in net assets......... 4,491 13,071 17,766 2,214 34,828 29,493
Net assets beginning of period..... 13,071 0 2,253 39 41,575 12,082
------- ------- ------- ------ -------- -------
Net assets end of period*.......... $17,562 $13,071 $20,019 $2,253 $ 76,403 $41,575
======= ======= ======= ====== ======== =======
Units outstanding beginning of
period........................... 1,234 0 211 4 3,719 1,217
Units issued during the period..... 599 1,336 1,761 286 3,786 2,712
Units redeemed during the period... (216) (102) (157) (79) (1,002) (210)
------- ------- ------- ------ -------- -------
Units outstanding end of period.... 1,617 1,234 1,815 211 6,503 3,719
======= ======= ======= ====== ======== =======
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 500 $ (32) $ 166 $ 0 $ 3,514 $ 890
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------
MONEY
MARKET
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1998 1997
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)..... $ 3,022 $ 2,744
Net realized gain (loss) on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
----------- -----------
Net increase in net assets
resulting from operations........ 3,022 2,744
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,183,490 1,828,075
Net asset value of units redeemed
or used to meet contract
obligations.................... (1,194,430) (1,728,100)
----------- -----------
Net increase (decrease) from unit
transactions..................... (10,940) 99,975
----------- -----------
Net increase in net assets......... (7,918) 102,719
Net assets beginning of period..... 169,650 66,931
----------- -----------
Net assets end of period*.......... $ 161,732 $ 169,650
=========== ===========
Units outstanding beginning of
period........................... 16,142 6,655
Units issued during the period..... 111,371 177,168
Units redeemed during the period... (112,459) (167,681)
----------- -----------
Units outstanding end of period.... 15,054 16,142
=========== ===========
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 6,035 $ 3,013
** Commencement of operations.
</TABLE>
See notes to financial statements.
19
<PAGE> 36
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
---------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ (5,918) $ 35,882 $ (1,631) $ 18,121 $ (11,726) $ 98,832
Net realized gains on
investments................... 23,557 32,926 13,999 11,289 72,781 54,871
Net increase (decrease) in
unrealized appreciation of
investments................... 138,905 1,377 38,642 583 261,151 5,802
---------- ---------- -------- ---------- ---------- ----------
Net increase in net assets
resulting from operations....... 156,544 70,185 51,010 29,993 322,206 159,505
---------- ---------- -------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units...................... 866,911 1,163,129 502,174 210,986 1,584,719 2,299,829
Net asset value of units
redeemed or used to meet
contract obligations.......... (146,519) (111,523) (65,181) (35,444) (311,969) (235,234)
---------- ---------- -------- ---------- ---------- ----------
Net increase from unit
transactions.................... 720,392 1,051,606 436,993 175,542 1,272,750 2,064,595
---------- ---------- -------- ---------- ---------- ----------
Net increase in net assets........ 876,936 1,121,791 488,003 205,535 1,594,956 2,224,100
Net assets beginning of period.... 1,175,951 54,160 222,289 16,754 2,351,256 127,156
---------- ---------- -------- ---------- ---------- ----------
Net assets end of period*......... $2,052,887 $1,175,951 $710,292 $ 222,289 $3,946,212 $2,351,256
========== ========== ======== ========== ========== ==========
Units outstanding beginning of
period.......................... 93,188 5,358 14,918 1,611 178,819 11,951
Units issued during the period.... 63,589 97,340 30,939 15,917 112,399 185,804
Units redeemed during the
period.......................... (10,970) (9,510) (4,063) (2,610) (22,216) (18,936)
---------- ---------- -------- ---------- ---------- ----------
Units outstanding end of period... 145,807 93,188 41,794 14,918 269,002 178,819
========== ========== ======== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 30,651 $ 36,569 $ 16,751 $ 18,382 $ 88,292 $ 100,018
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
---------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ (773) $ 4,431 $ 4,664 $ 4,368
Net realized gains on
investments................... 1,448 6,470 1,171 1,691
Net increase (decrease) in
unrealized appreciation of
investments................... 23,027 (10,379) (942) 1,248
-------- -------- -------- -------
Net increase in net assets
resulting from operations....... 23,702 522 4,893 7,307
-------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 79,617 175,743 83,575 98,004
Net asset value of units
redeemed or used to meet
contract obligations.......... (23,592) (19,488) (12,085) (7,883)
-------- -------- -------- -------
Net increase from unit
transactions.................... 56,025 156,255 71,490 90,121
-------- -------- -------- -------
Net increase in net assets........ 79,727 156,777 76,383 97,428
Net assets beginning of period.... 171,237 14,460 97,797 369
-------- -------- -------- -------
Net assets end of period*......... $250,964 $171,237 $174,180 $97,797
======== ======== ======== =======
Units outstanding beginning of
period.......................... 16,311 1,439 8,584 37
Units issued during the period.... 6,869 16,654 6,899 9,272
Units redeemed during the
period.......................... (2,029) (1,782) (839) (725)
-------- -------- -------- -------
Units outstanding end of period... 21,151 16,311 14,644 8,584
======== ======== ======== =======
- ---------------
* Includes undistributed net
investment income of: $ 3,708 $ 4,481 $ 9,033 $ 4,369
</TABLE>
See notes to financial statements.
20
<PAGE> 37
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance policies and Variable Universal
Life Insurance policies. These policies are issued by MONY.
There are currently fifteen subaccounts within the Variable Account, and
each invests only in a corresponding portfolio of the MONY Series Fund, Inc.
(the "Fund") or the Enterprise Accumulation Trust ("Enterprise") (collectively,
the "Funds"). The subaccounts of the Variable Universal Life commenced
operations during 1996 and 1997. The Funds are registered under the 1940 Act as
open end, diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 60 to 93 and 95 to 126,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios of the Funds
is stated at value which is the net asset value of the Funds. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolios, the net
asset values are based on amortized cost of the securities held which
approximates value.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for all
subaccounts for 1998 aggregated $465,953.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of .60 percent (for the Variable Life
Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts) of
aggregate average daily net assets. As MONY America, a wholly-owned subsidiary
of MONY, acts as investment adviser to the Fund, it receives amounts paid by the
Fund for those services.
21
<PAGE> 38
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at June 30, 1998 (unaudited) consist
of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares............................ 2,184 1,590 635 1,091 3,904 30,472
Amount............................ $59,712 $34,880 $6,642 $12,694 $57,696 $30,472
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................ 164 155 19 24 60 126
Amount............................ $ 5,756 $ 4,132 $ 204 $ 327 $ 1,148 $ 126
Shares received for reinvestment of
dividends:
Shares............................ 408 285 34 65 1,090 775
Amount............................ $13,809 $ 7,362 $ 369 $ 844 $19,262 $ 775
Shares redeemed:
Shares............................ (113) (94) (24) (40) (103) (1,385)
Amount............................ $(2,422) $(1,923) $ (246) $ (477) $(1,271) $(1,385)
------- ------- ------ ------- ------- -------
Net change:
Shares............................ 459 346 29 49 1,047 (484)
Amount............................ $17,143 $ 9,571 $ 327 $ 694 $19,139 $ (484)
------- ------- ------ ------- ------- -------
Shares end of period:
Shares............................ 2,643 1,936 664 1,140 4,951 29,988
Amount............................ $76,855 $44,451 $6,969 $13,388 $76,835 $29,988
======= ======= ====== ======= ======= =======
</TABLE>
22
<PAGE> 39
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at June 30, 1998
(unaudited) consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares beginning of period:
Shares................... 1,201 203 3,048 169,650
Amount................... $12,769 $ 2,176 $ 39,273 $ 169,650
------- ------- --------- ------------
Shares acquired:
Shares................... 636 1,788 3,436 1,359,061
Amount................... $ 6,862 $19,301 $ 46,391 $ 1,359,061
Shares received for
reinvestment of
dividends:
Shares................... 55 19 218 3,526
Amount................... $ 587 $ 199 $ 2,834 $ 3,526
Shares redeemed:
Shares................... (259) (176) (1,076) (1,370,505)
Amount................... $(2,745) $(1,882) $(13,915) $ (1,370,505)
------- ------- --------- ------------
Net change:
Shares................... 432 1,631 2,578 (7,918)
Amount................... $ 4,704 $17,618 $ 35,310 $ (7,918)
------- ------- --------- ------------
Shares end of period:
Shares................... 1,633 1,834 5,626 161,732
Amount................... $17,473 $19,794 $ 74,583 $ 161,732
======= ======= ========= ============
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- --------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares................... 33,513 8,326 57,657 27,708 17,128
Amount................... $1,175,271 $221,696 $2,347,957 $181,455 $ 96,548
---------- -------- ---------- -------- ---------
Shares acquired:
Shares................... 23,960 17,682 38,039 14,600 15,269
Amount................... $ 910,783 $516,428 $1,666,783 $ 98,295 $ 88,654
Shares received for
reinvestment of
dividends:
Shares................... 0 0 0 0 891
Amount................... $ 0 $ 0 $ 0 $ 0 $ 5,161
Shares redeemed:
Shares................... (5,223) (2,765) (9,270) (6,507) (3,047)
Amount................... $ (172,752) $(67,067) $ (332,978) $(41,595) $ (16,490)
---------- -------- ---------- -------- ---------
Net change:
Shares................... 18,737 14,917 28,769 8,093 13,113
Amount................... $ 738,031 $449,361 $1,333,805 $ 56,700 $ 77,325
---------- -------- ---------- -------- ---------
Shares end of period:
Shares................... 52,250 23,243 86,426 35,801 30,241
Amount................... $1,913,302 $671,057 $3,681,762 $238,155 $ 173,873
========== ======== ========== ======== =========
</TABLE>
23
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....................... $ 96,250 $108,949 $34,465 $122,883 $54,750
======== ======== ======= ======== =======
Investments in MONY Series Fund, Inc. at net asset
value (Note 2)................................... $147,989 $131,766 $35,730 $160,577 $54,750
-------- -------- ------- -------- -------
Net assets......................................... $147,989 $131,766 $35,730 $160,577 $54,750
======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net payments.................... $ 24,193 $ (2,117) $17,930 $ 33,619 $35,870
Cost of insurance withdrawals (Note 3)........... (8,587) (13,132) (6,271) (14,546) (3,362)
Undistributed net investment income.............. 45,604 81,231 23,985 88,566 22,242
Accumulated net realized gain (loss) on
investments................................... 35,040 42,967 (1,179) 15,244 0
Unrealized appreciation of investments........... 51,739 22,817 1,265 37,694 0
-------- -------- ------- -------- -------
Net assets......................................... $147,989 $131,766 $35,730 $160,577 $54,750
======== ======== ======= ======== =======
Number of units outstanding*....................... 2,991 2,954 1,763 4,347 3,371
-------- -------- ------- -------- -------
Net asset value per unit outstanding*.............. $ 49.47 $ 44.61 $ 20.27 $ 36.94 $ 16.24
======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
24
<PAGE> 41
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.................................... $22,560 $20,344 $1,818 $34,057 $1,389
Mortality and expense risk charges (Note 3)........ (585) (543) (147) (634) (226)
------- ------- ------ ------- ------
Net investment income.............................. 21,975 19,801 1,671 33,423 1,163
------- ------- ------ ------- ------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales.............................. 771 687 301 797 308
Cost of shares sold.............................. (260) (449) (297) (515) (308)
------- ------- ------ ------- ------
Net realized gain on investments................... 511 238 4 282 0
Net decrease in unrealized appreciation of
investments...................................... (4,458) (9,369) (594) (14,775) 0
------- ------- ------ ------- ------
Net realized and unrealized loss on investments.... (3,947) (9,131) (590) (14,493) 0
------- ------- ------ ------- ------
Net increase in net assets resulting from
operations....................................... $18,028 $10,670 $1,081 $18,930 $1,163
======= ======= ====== ======= ======
</TABLE>
See notes to financial statements.
25
<PAGE> 42
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 21,975 $ 8,385 $ 19,801 $ 10,671 $ 1,671 $ 1,621
Net realized gain (loss) on
investments.................... 511 4,153 238 1,148 4 (60)
Net increase (decrease) in
unrealized appreciation of
investments.................... (4,458) 17,472 (9,369) 16,402 (594) 671
-------- -------- -------- -------- ------- -------
Net increase in net assets
resulting from operations........ 18,028 30,010 10,670 28,221 1,081 2,232
-------- -------- -------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 117 324 117 0 120 462
Net asset value of units redeemed
or used to meet contract
obligations.................... (183) (1,805) (139) (884) (153) (1,168)
-------- -------- -------- -------- ------- -------
Net Increase (decrease) from unit
transactions..................... (66) (1,481) (22) (884) (33) (706)
-------- -------- -------- -------- ------- -------
Net increase in net assets........ 17,962 28,529 10,648 27,337 1,048 1,526
Net assets beginning of period.... 130,027 101,498 121,118 93,781 34,682 33,156
-------- -------- -------- -------- ------- -------
Net assets end of period*......... $147,989 $130,027 $131,766 $121,118 $35,730 $34,682
======== ======== ======== ======== ======= =======
Units outstanding beginning of
period........................... 2,993 3,027 2,954 2,978 1,765 1,802
Units issued during the period.... 2 21 3 0 6 27
Units redeemed during the
period........................... (4) (55) (3) (24) (8) (64)
-------- -------- -------- -------- ------- -------
Units outstanding end of period... 2,991 2,993 2,954 2,954 1,763 1,765
======== ======== ======== ======== ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 45,604 $ 23,629 $ 81,231 $ 61,430 $23,985 $22,314
<CAPTION>
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $ 33,423 $ 8,592 $ 1,163 $ 2,268
Net realized gain (loss) on
investments.................... 282 2,091 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... (14,775) 16,916 0 0
-------- -------- ------- -------
Net increase in net assets
resulting from operations........ 18,930 27,599 1,163 2,268
-------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 0 646 119 177
Net asset value of units redeemed
or used to meet contract
obligations.................... (163) (1,825) (82) (518)
-------- -------- ------- -------
Net Increase (decrease) from unit
transactions..................... (163) (1,179) 37 (341)
-------- -------- ------- -------
Net increase in net assets........ 18,767 26,420 1,200 1,927
Net assets beginning of period.... 141,810 115,390 53,550 51,623
-------- -------- ------- -------
Net assets end of period*......... $160,577 $141,810 $54,750 $53,550
======== ======== ======= =======
Units outstanding beginning of
period........................... 4,351 4,388 3,369 3,391
Units issued during the period.... 0 32 7 12
Units redeemed during the
period........................... (4) (69) (5) (34)
-------- -------- ------- -------
Units outstanding end of period... 4,347 4,351 3,371 3,369
======== ======== ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 88,566 $ 55,143 $22,242 $21,079
</TABLE>
See notes to financial statements.
26
<PAGE> 43
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account S (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support Variable Life Insurance with Additional Premium
Option policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY").
There are currently six subaccounts available within the Variable Account.
One of the subaccounts has no assets and five subaccounts invest only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund"). The Fund is
registered under the 1940 Act as an open end, diversified, management investment
company.
A full presentation of the related financial statements and footnotes of
the Fund are contained on pages 60 to 93 and should be read in conjunction with
these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of the respective portfolios is stated at value
which is the net asset value of the Fund. Except for the Money Market Portfolio,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Fund. For the Money Market Portfolio, the
net asset values are based on amortized cost of the securities held which
approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained for any premium taxes.
The cost of insurance, administration charges, and, if applicable, deferred
premium taxes are deducted monthly from the cash value of the contract to
compensate MONY America. These deductions are treated as contractholder
redemptions by the Variable Account. The amount deducted for all subaccounts for
1998 aggregated $691.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.85 percent of aggregate
average daily net assets. As investment adviser to the Fund, it receives amounts
paid by the Fund for those services.
27
<PAGE> 44
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1998 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ----------- ---------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................................... 3,604 4,469 3,119 6,881 53,550
Amount..................................... $73,830 $ 88,932 $32,823 $ 89,341 $53,550
------- -------- ------- -------- -------
Shares acquired:
Shares..................................... 3 4 10 0 119
Amount..................................... $ 120 $ 122 $ 121 $ 0 $ 119
Shares received for reinvestment of
dividends:
Shares..................................... 666 788 170 1,927 1,389
Amount..................................... $22,560 $ 20,344 $ 1,818 $ 34,057 $ 1,389
Shares redeemed:
Shares..................................... (22) (26) (27) (43) (308)
Amount..................................... $ (260) $ (449) $ (297) $ (515) $ (308)
------- -------- ------- -------- -------
Net change:
Shares..................................... 647 766 153 1,884 1,200
Amount..................................... $22,420 $ 20,017 $ 1,642 $ 33,542 $ 1,200
------- -------- ------- -------- -------
Shares end of period:
Shares..................................... 4,251 5,235 3,272 8,765 54,750
Amount..................................... $96,250 $108,949 $34,465 $122,883 $54,750
======= ======== ======= ======== =======
</TABLE>
28
<PAGE> 45
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- -----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)................................ $43,456 $ 76,186
======= =========
Investments in MONY Series Fund, Inc. at net asset value
(Note 2).................................................. $64,219 $ 95,956
------- ---------
Net assets.................................................. $64,219 $ 95,956
======= =========
Net assets consist of:
Contractholders' net payments............................. $16,607 $(141,709)
Cost of insurance withdrawals (Note 3).................... (1,904) (66,265)
Undistributed net investment income....................... 25,832 170,460
Accumulated net realized gains on investments............. 2,921 113,700
Unrealized appreciation of investments.................... 20,763 19,770
------- ---------
Net assets.................................................. $64,219 $ 95,956
======= =========
Number of units outstanding*................................ 1,525 2,779
------- ---------
Net asset value per unit outstanding*....................... $ 42.12 $ 34.53
======= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
29
<PAGE> 46
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- -----------
<S> <C> <C>
Dividend income............................................. $9,912 $20,366
Mortality and expense risk charges (Note 3)................. (266) (381)
------ -------
Net investment income....................................... 9,646 19,985
------ -------
Realized and unrealized gain on investments (Note 2):
Proceeds from sales....................................... 266 590
Cost of shares sold....................................... (142) (402)
------ -------
Net realized gain on investments............................ 124 188
Net decrease in unrealized appreciation of investments...... (4,574) (8,859)
------ -------
Net realized and unrealized loss on investments............. (4,450) (8,671)
------ -------
Net increase in net assets resulting from operations........ $5,196 $11,314
====== =======
</TABLE>
See notes to financial statements.
30
<PAGE> 47
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income............................ $ 9,646 $ 5,154 $ 19,985 $ 5,088
Net realized gain on investments................. 124 238 188 376
Net increase (decrease) in unrealized
appreciation of investments.................... (4,574) 8,275 (8,859) 10,931
------- ------- -------- --------
Net increase in net assets resulting from
operations....................................... 5,196 13,667 11,314 16,395
------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.......... 0 0 0 0
Net asset value of units redeemed or used to meet
contract obligations........................... 0 (42) (209) (393)
------- ------- -------- --------
Net decrease from unit transactions................ 0 (42) (209) (393)
------- ------- -------- --------
Net increase in net assets......................... 5,196 13,625 11,105 16,002
Net assets beginning of period..................... 59,023 45,398 84,851 68,849
------- ------- -------- --------
Net assets end of period*.......................... $64,219 $59,023 $ 95,956 $ 84,851
======= ======= ======== ========
Units outstanding beginning of period.............. 1,525 1,526 2,785 2,800
Units issued during the period..................... 0 0 0 0
Units redeemed during the period................... 0 (1) (6) (15)
------- ------- -------- --------
Units outstanding end of period.................... 1,525 1,525 2,779 2,785
======= ======= ======== ========
- ---------------
* Includes undistributed net investment income of: $25,832 $16,186 $170,460 $150,475
</TABLE>
See notes to financial statements.
31
<PAGE> 48
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account S (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance with Additional Premium Option
policies. These policies are issued by MONY.
There are currently six subaccounts available within the Variable Account.
Four of the subaccounts have no assets and two invest only in a corresponding
portfolio of the MONY Series Fund, Inc. (the "Fund"). The Fund is registered
under the 1940 Act as an open end, diversified, management investment company.
A full presentation of the related financial statements and footnotes of
the Fund are contained on pages 60 to 93 and should be read in conjunction with
these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset value of the Fund. Net asset values are based upon
market valuations of the securities held in each of the corresponding portfolios
of the Fund.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account. Policy
premiums received from MONY by the Variable Account represent gross policy
premiums recorded by MONY less deductions retained for any premium taxes.
The cost of insurance, administration charges, and, if applicable, deferred
premium taxes are deducted monthly from the cash value of the contract to
compensate MONY. These deductions are treated as contractholder redemptions by
the Variable Account. The amount deducted for all subaccounts for 1998
aggregated $160.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.85 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
32
<PAGE> 49
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1998 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of period:
Shares.................................................... 2,177 4,117
Amount.................................................... $33,686 $56,222
------- -------
Shares acquired:
Shares.................................................... 0 0
Amount.................................................... $ 0 $ 0
Shares received for reinvestment of dividends:
Shares.................................................... 384 1,153
Amount.................................................... $ 9,912 $20,366
Shares redeemed:
Shares.................................................... (10) (32)
Amount.................................................... $ (142) $ (402)
------- -------
Net change:
Shares.................................................... 374 1,121
Amount.................................................... $ 9,770 $19,964
------- -------
Shares end of period:
Shares.................................................... 2,551 5,238
Amount.................................................... $43,456 $76,186
======= =======
</TABLE>
33
<PAGE> 50
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-----------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $1,150,841 $1,010,221 $39,983,727 $65,279,810 $1,378,374 $136,642,577 $25,478,348
========== ========== =========== =========== ========== ============ ===========
Investments in MONY Series Fund,
Inc., at net asset value
(Note 2)...................... $1,542,445 $1,284,310 $40,914,062 $69,544,058 $1,610,551 $136,642,577 $25,930,278
Amount due from MONY America.... 0 0 545 9,487 0 1,582,046 427
Amount due from MONY Series
Fund, Inc..................... 0 0 9,230 15,544 60 238,638 21,234
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total assets............ 1,542,445 1,284,310 40,923,837 69,569,089 1,610,611 138,463,261 25,951,939
---------- ---------- ----------- ----------- ---------- ------------ -----------
LIABILITIES
Amount due to MONY America...... 0 0 9,230 15,544 60 238,638 21,234
Amount due to MONY Series Fund,
Inc........................... 0 0 545 9,487 0 1,582,046 427
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total liabilities....... 0 0 9,775 25,031 60 1,820,684 21,661
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets...................... $1,542,445 $1,284,310 $40,914,062 $69,544,058 $1,610,551 $136,642,577 $25,930,278
========== ========== =========== =========== ========== ============ ===========
Net assets consist of:
Contractholders' net
payments.................... $ 126,885 $ (212,318) $32,183,135 $48,738,177 $ (317,627) $118,247,360 $23,803,200
Undistributed net investment
income...................... 462,701 713,457 7,787,497 14,197,922 1,062,586 18,395,217 1,226,110
Accumulated net realized gain
on investments.............. 561,255 509,082 13,095 2,343,711 633,415 0 449,038
Unrealized appreciation of
investments................. 391,604 274,089 930,335 4,264,248 232,177 0 451,930
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets...................... $1,542,445 $1,284,310 $40,914,062 $69,544,058 $1,610,551 $136,642,577 $25,930,278
========== ========== =========== =========== ========== ============ ===========
Number of units outstanding*.... 33,993 30,854 2,152,538 2,907,157 47,162 8,843,733 2,127,860
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net asset value per unit
outstanding*.................. $ 45.38 $ 41.63 $ 19.01 $ 23.92 $ 34.15 $ 15.45 $ 12.19
========== ========== =========== =========== ========== ============ ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
34
<PAGE> 51
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $402,483,917 $301,125,778 $1,918,897,905 $67,595,733 $74,497,146
============ ============ ============== =========== ===========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................. $523,907,991 $394,274,149 $2,623,301,355 $74,759,026 $76,616,894
Amount due from MONY America...... 41,383 46,734 173,717 20,547 4,443
Amount due from Enterprise
Accumulation Trust.............. 221,796 110,002 480,591 14,008 36,725
------------ ------------ -------------- ----------- -----------
Total assets............ 524,171,170 394,430,885 2,623,955,663 74,793,581 76,658,062
------------ ------------ -------------- ----------- -----------
LIABILITIES
Amount due to MONY America........ 221,796 110,002 480,591 14,008 36,725
Amount due to Enterprise
Accumulation Trust.............. 41,383 46,734 173,717 20,547 4,443
------------ ------------ -------------- ----------- -----------
Total liabilities....... 263,179 156,736 654,308 34,555 41,168
------------ ------------ -------------- ----------- -----------
Net assets........................ $523,907,991 $394,274,149 $2,623,301,355 $74,759,026 $76,616,894
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $311,316,819 $228,622,985 $1,310,217,182 $60,228,801 $65,548,775
Undistributed net investment
income....................... 16,329,578 37,038,012 148,471,134 1,192,568 7,786,346
Accumulated net realized gain on
investments.................. 74,837,520 35,464,781 460,209,589 6,174,364 1,162,025
Unrealized appreciation of
investments.................. 121,424,074 93,148,371 704,403,450 7,163,293 2,119,748
------------ ------------ -------------- ----------- -----------
Net assets........................ $523,907,991 $394,274,149 $2,623,301,355 $74,759,026 $76,616,894
============ ============ ============== =========== ===========
Number of units outstanding*...... 11,419,494 9,173,144 44,676,809 5,107,846 5,100,200
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 45.88 $ 42.98 $ 58.72 $ 14.64 $ 15.02
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
35
<PAGE> 52
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................ $1,593,052 $952,046 $1,719,567 $2,699,408 $27,862,178
========== ======== ========== ========== ===========
Investments in OCC Accumulation Trust, at
net asset value (Note 2).................. $1,593,052 $983,222 $2,998,622 $3,382,333 $44,238,856
Dividends Receivable........................ 2,425 1,687 0 0 0
---------- -------- ---------- ---------- -----------
Net assets.................................. $1,595,477 $984,909 $2,998,622 $3,382,333 $44,238,856
========== ======== ========== ========== ===========
Net assets consist of:
Contractholders' net payments............. $1,233,641 $535,810 $ 605,105 $1,785,334 $ 8,760,670
Undistributed net investment income....... 361,836 375,517 242,454 309,374 2,841,831
Accumulated net realized gain on
investments............................ 0 42,406 872,008 604,700 16,259,677
Unrealized appreciation of investments.... 0 31,176 1,279,055 682,925 16,376,678
---------- -------- ---------- ---------- -----------
Net assets.................................. $1,595,477 $984,909 $2,998,622 $3,382,333 $44,238,856
========== ======== ========== ========== ===========
Number of units outstanding*................ 112,675 55,852 65,216 99,098 784,578
---------- -------- ---------- ---------- -----------
Net asset value per unit outstanding*....... $ 14.16 $ 17.63 $ 45.98 $ 34.13 $ 56.39
========== ======== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
36
<PAGE> 53
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................ $243,469 $202,166 $ 2,012,440 $ 3,580,527 $341,271 $ 3,130,844 $ 914,254
Mortality and expense risk
charges (Note 3)............. (9,348) (8,243) (236,937) (395,668) (9,602) (746,692) (140,985)
-------- -------- ----------- ----------- -------- ------------ ----------
Net investment income.......... 234,121 193,923 1,775,503 3,184,859 331,669 2,384,152 773,269
-------- -------- ----------- ----------- -------- ------------ ----------
Realized and unrealized gain
(loss) on investments
(Note 2):
Proceeds from sales.......... 186,809 294,799 2,859,189 8,698,689 300,289 309,471,376 2,847,652
Cost of shares sold.......... (100,349) (158,504) (2,686,150) (7,384,727) (184,305) (309,471,376) (2,676,185)
-------- -------- ----------- ----------- -------- ------------ ----------
Net realized gain on
investments.................. 86,460 136,295 173,039 1,313,962 115,984 0 171,467
Net decrease in unrealized
appreciation of
investments.................. (124,156) (218,467) (846,665) (1,406,890) (256,149) 0 (423,718)
-------- -------- ----------- ----------- -------- ------------ ----------
Net realized and unrealized
loss on investments.......... (37,696) (82,172) (673,626) (92,928) (140,165) 0 (252,251)
-------- -------- ----------- ----------- -------- ------------ ----------
Net increase in net assets
resulting from operations.... $196,425 $111,751 $ 1,101,877 $ 3,091,931 $191,504 $ 2,384,152 $ 521,018
======== ======== =========== =========== ======== ============ ==========
</TABLE>
See notes to financial statements.
37
<PAGE> 54
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income..................................... $ 0 $ 0 $ 0 $ 0 $2,629,635
Mortality and expense risk charges (Note 3)......... (3,012,147) (2,205,867) (15,412,498) (435,673) (423,149)
----------- ----------- ------------- ----------- ----------
Net investment income (loss)........................ (3,012,147) (2,205,867) (15,412,498) (435,673) 2,206,486
----------- ----------- ------------- ----------- ----------
Realized and unrealized gain on investments
(Note 2):
Proceeds from sales............................... 43,491,670 38,152,011 210,275,376 11,879,645 5,633,029
Cost of shares sold............................... (23,469,324) (22,098,593) (101,330,768) (9,951,562) (5,184,481)
----------- ----------- ------------- ----------- ----------
Net realized gain on investments.................... 20,022,346 16,053,418 108,944,608 1,928,083 448,548
Net increase (decrease) in unrealized appreciation
of investments.................................... 33,944,888 31,345,190 168,818,257 6,649,126 (42,175)
----------- ----------- ------------- ----------- ----------
Net realized and unrealized gain on investments..... 53,967,234 47,398,608 277,762,865 8,577,209 406,373
----------- ----------- ------------- ----------- ----------
Net increase in net assets resulting from
operations........................................ $50,955,087 $45,192,741 $ 262,350,367 $ 8,141,536 $2,612,859
=========== =========== ============= =========== ==========
</TABLE>
See notes to financial statements.
38
<PAGE> 55
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
--------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income................................. $ 48,597 $ 28,567 $165,245 $163,330 $1,724,922
Mortality and expense risk charges (Note 3)..... (13,199) (6,751) (19,388) (25,332) (284,584)
---------- ---------- -------- -------- ----------
Net investment income........................... 35,398 21,816 145,857 137,998 1,440,338
---------- ---------- -------- -------- ----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales........................... 1,177,476 412,697 515,438 935,215 9,600,030
Cost of shares sold........................... (1,177,476) (398,543) (249,025) (614,081) (4,691,542)
---------- ---------- -------- -------- ----------
Net realized gain on investments................ 0 14,154 266,413 321,134 4,908,488
Net decrease in unrealized appreciation of
investments................................... 0 (1,501) (51,185) (484,320) (1,594,718)
---------- ---------- -------- -------- ----------
Net realized and unrealized gain (loss) on
investments................................... 0 12,653 215,228 (163,186) 3,313,770
---------- ---------- -------- -------- ----------
Net increase (decrease) in net assets resulting
from operations............................... $ 35,398 $ 34,469 $361,085 $(25,188) $4,754,108
========== ========== ======== ======== ==========
</TABLE>
See notes to financial statements.
39
<PAGE> 56
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 234,121 $ 88,958 $ 193,923 $ 131,018 $ 1,775,503 $ 1,467,821
Net realized gain on
investments.................... 86,460 21,769 136,295 106,897 173,039 286,935
Net increase (decrease) in
unrealized appreciation of
investments.................... (124,156) 228,905 (218,467) 112,714 (846,665) 383,054
---------- ---------- ---------- ---------- ----------- -----------
Net increase in net assets
resulting from operations........ 196,425 339,632 111,751 350,629 1,101,877 2,137,810
---------- ---------- ---------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 23,121 64,958 21,680 10,553 6,446,196 7,883,206
Net asset value of units redeemed
or used to meet contract
obligations.................... (177,466) (18,731) (287,155) (196,802) (2,495,212) (7,423,806)
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) from unit
transactions..................... (154,345) 46,227 (265,475) (186,249) 3,950,984 459,400
---------- ---------- ---------- ---------- ----------- -----------
Net increase in net assets......... 42,080 385,859 (153,724) 164,380 5,052,861 2,597,210
Net assets beginning of period..... 1,500,365 1,114,506 1,438,034 1,273,654 35,861,201 33,263,991
---------- ---------- ---------- ---------- ----------- -----------
Net assets end of period*.......... $1,542,445 $1,500,365 $1,284,310 $1,438,034 $40,914,062 $35,861,201
========== ========== ========== ========== =========== ===========
Units outstanding beginning of
period........................... 37,580 36,033 37,519 43,089 1,941,792 1,916,050
Units issued during the period..... 533 1,961 500 353 343,871 444,683
Units redeemed during the period... (4,120) (414) (7,165) (5,923) (133,125) (418,941)
---------- ---------- ---------- ---------- ----------- -----------
Units outstanding end of period.... 33,993 37,580 30,854 37,519 2,152,538 1,941,792
========== ========== ========== ========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 462,701 $ 228,580 $ 713,457 $ 519,534 $ 7,787,497 $ 6,011,994
<CAPTION>
MONY SERIES FUND, INC.
---------------------------
LONG TERM BOND
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1998 1997
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 3,184,859 $ 2,470,718
Net realized gain on
investments.................... 1,313,962 1,467,041
Net increase (decrease) in
unrealized appreciation of
investments.................... (1,406,890) 2,326,867
----------- ------------
Net increase in net assets
resulting from operations........ 3,091,931 6,264,626
----------- ------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 13,749,792 13,719,649
Net asset value of units redeemed
or used to meet contract
obligations.................... (7,655,315) (10,658,828)
----------- ------------
Net increase (decrease) from unit
transactions..................... 6,094,477 3,060,821
----------- ------------
Net increase in net assets......... 9,186,408 9,325,447
Net assets beginning of period..... 60,357,650 51,032,203
----------- ------------
Net assets end of period*.......... $69,544,058 $ 60,357,650
=========== ============
Units outstanding beginning of
period........................... 2,645,732 2,506,531
Units issued during the period..... 591,777 653,780
Units redeemed during the period... (330,352) (514,579)
----------- ------------
Units outstanding end of period.... 2,907,157 2,645,732
=========== ============
- ---------------
* Includes undistributed net
investment income of: $14,197,922 $ 11,013,063
</TABLE>
See notes to financial statements.
40
<PAGE> 57
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
-----------------------------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- ----------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------- ------------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............... $ 331,669 $ 123,011 $ 2,384,152 $ 5,143,017 $ 773,269 $ 393,034
Net realized gain on investments.... 115,984 233,594 0 0 171,467 92,136
Net increase (decrease) in
unrealized appreciation of
investments....................... (256,149) 41,876 0 0 (423,718) 518,951
---------- ---------- ------------- ------------- ----------- -----------
Net increase in net assets resulting
from operations..................... 191,504 398,481 2,384,152 5,143,017 521,018 1,004,121
---------- ---------- ------------- ------------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of
units............................. 36,550 42,121 302,792,109 771,270,721 6,968,432 9,322,729
Net asset value of units redeemed or
used to meet contract
obligations....................... (290,803) (634,220) (298,614,124) (766,971,962) (2,542,643) (3,626,150)
---------- ---------- ------------- ------------- ----------- -----------
Net increase (decrease) from unit
transactions........................ (254,253) (592,099) 4,177,985 4,298,759 4,425,789 5,696,579
---------- ---------- ------------- ------------- ----------- -----------
Net increase (decrease) in net
assets.............................. (62,749) (193,618) 6,562,137 9,441,776 4,946,807 6,700,700
Net assets beginning of period........ 1,673,300 1,866,918 130,080,440 120,638,664 20,983,471 14,282,771
---------- ---------- ------------- ------------- ----------- -----------
Net assets end of period*............. $1,610,551 $1,673,300 $ 136,642,577 $ 130,080,440 $25,930,278 $20,983,471
========== ========== ============= ============= =========== ===========
Units outstanding beginning of
period.............................. 55,440 76,353 8,585,010 8,278,977 1,761,542 1,269,214
Units issued during the period........ 1,154 1,688 19,760,962 51,933,520 577,541 807,156
Units redeemed during the period...... (9,432) (22,601) (19,502,239) (51,627,487) (211,223) (314,828)
---------- ---------- ------------- ------------- ----------- -----------
Units outstanding end of period....... 47,162 55,440 8,843,733 8,585,010 2,127,860 1,761,542
========== ========== ============= ============= =========== ===========
- ---------------
* Includes undistributed net
investment income of: $1,062,586 $ 730,917 $ 18,395,217 $ 16,011,065 $ 1,226,110 $ 452,841
</TABLE>
See notes to financial statements.
41
<PAGE> 58
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- -------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (3,012,147) $ 10,134,835 $ (2,205,867) $ 24,100,179 $ (15,412,498) $ 79,408,406
Net realized gain on
investments.................. 20,022,346 31,547,377 16,053,418 12,200,856 108,944,608 202,106,289
Net increase (decrease) in
unrealized appreciation of
investments.................. 33,944,888 34,785,044 31,345,190 43,551,752 168,818,257 125,071,710
------------ ------------ ------------ ------------ -------------- --------------
Net increase in net assets
resulting from operations...... 50,955,087 76,467,256 45,192,741 79,852,787 262,350,367 406,586,405
------------ ------------ ------------ ------------ -------------- --------------
From unit transactions:
Net proceeds from the issuance
of units..................... 68,861,895 153,834,908 65,494,455 103,297,248 231,254,956 626,988,679
Net asset value of units
redeemed or used to meet
contract obligations......... (37,208,189) (61,472,849) (33,752,816) (33,906,004) (183,225,520) (409,563,542)
------------ ------------ ------------ ------------ -------------- --------------
Net increase from unit
transactions................... 31,653,706 92,362,059 31,741,639 69,391,244 48,029,436 217,425,137
------------ ------------ ------------ ------------ -------------- --------------
Net increase in net assets...... 82,608,793 168,829,315 76,934,380 149,244,031 310,379,803 624,011,542
Net assets beginning of
period......................... 441,299,198 272,469,883 317,339,769 168,095,738 2,312,921,552 1,688,910,010
------------ ------------ ------------ ------------ -------------- --------------
Net assets end of period*....... $523,907,991 $441,299,198 $394,274,149 $317,339,769 $2,623,301,355 $2,312,921,552
============ ============ ============ ============ ============== ==============
Units outstanding beginning of
period......................... 10,706,757 8,212,227 8,401,211 6,346,453 43,843,754 39,371,381
Units issued during the
period......................... 1,558,828 4,173,627 1,596,648 3,110,995 4,084,386 13,252,564
Units redeemed during the
period......................... (846,091) (1,679,097) (824,715) (1,056,237) (3,251,331) (8,780,191)
------------ ------------ ------------ ------------ -------------- --------------
Units outstanding end of
period......................... 11,419,494 10,706,757 9,173,144 8,401,211 44,676,809 43,843,754
============ ============ ============ ============ ============== ==============
- ---------------
* Includes undistributed net
investment income of: $ 16,329,578 $19,341,725 $37,038,012 $39,243,879 $ 148,471,134 $ 163,883,632
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (435,673) $ 1,171,619 $ 2,206,486 $ 3,449,870
Net realized gain on
investments.................. 1,928,083 3,166,636 448,548 461,482
Net increase (decrease) in
unrealized appreciation of
investments.................. 6,649,126 (3,024,032) (42,175) 1,157,688
------------ ------------ ----------- -----------
Net increase in net assets
resulting from operations...... 8,141,536 1,314,223 2,612,859 5,069,040
------------ ------------ ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units..................... 12,216,705 35,179,809 19,988,863 30,370,695
Net asset value of units
redeemed or used to meet
contract obligations......... (10,775,749) (16,397,762) (4,856,489) (6,983,741)
------------ ------------ ----------- -----------
Net increase from unit
transactions................... 1,440,956 18,782,047 15,132,374 23,386,954
------------ ------------ ----------- -----------
Net increase in net assets...... 9,582,492 20,096,270 17,745,233 28,455,994
Net assets beginning of
period......................... 65,176,534 45,080,264 58,871,661 30,415,667
------------ ------------ ----------- -----------
Net assets end of period*....... $74,759,026 $65,176,534 $76,616,894 $58,871,661
============ ============ =========== ===========
Units outstanding beginning of
period......................... 5,021,078 3,610,923 4,081,656 2,361,710
Units issued during the
period......................... 859,167 2,649,674 1,344,142 2,234,031
Units redeemed during the
period......................... (772,399) (1,239,519) (325,598) (514,085)
------------ ------------ ----------- -----------
Units outstanding end of
period......................... 5,107,846 5,021,078 5,100,200 4,081,656
============ ============ =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 1,192,568 $ 1,628,241 $ 7,786,346 $ 5,579,860
</TABLE>
See notes to financial statements.
42
<PAGE> 59
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........... $ 35,398 $ 84,261 $ 21,816 $ 82,928 $ 145,857 $ 85,330
Net realized gain (loss) on
investments................... 0 0 14,154 (17,195) 266,413 291,249
Net increase (decrease) in
unrealized appreciation of
investments................... 0 0 (1,501) 22,568 (51,185) 311,925
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
assets resulting from
operations...................... 35,398 84,261 34,469 88,301 361,085 688,504
----------- ----------- ---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units...................... 1,022,370 3,559,696 69,871 206,205 84,321 94,191
Net asset value of units
redeemed or used to meet
contract obligations.......... (1,164,277) (5,555,831) (405,946) (936,786) (496,708) (607,309)
----------- ----------- ---------- ---------- ---------- ----------
Net decrease from unit
transactions.................... (141,907) (1,996,135) (336,075) (730,581) (412,387) (513,118)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
assets.......................... (106,509) (1,911,874) (301,606) (642,280) (51,302) 175,386
Net assets beginning of period... 1,701,986 3,613,860 1,286,515 1,928,795 3,049,924 2,874,538
----------- ----------- ---------- ---------- ---------- ----------
Net assets end of period*........ $ 1,595,477 $ 1,701,986 $ 984,909 $1,286,515 $2,998,622 $3,049,924
=========== =========== ========== ========== ========== ==========
Units outstanding beginning of
period.......................... 122,178 268,258 75,192 118,986 74,411 87,730
Units issued during the period... 73,026 258,478 4,017 12,934 1,884 2,620
Units redeemed during the
period.......................... (82,529) (404,558) (23,357) (56,728) (11,079) (15,939)
----------- ----------- ---------- ---------- ---------- ----------
Units outstanding end of
period.......................... 112,675 122,178 55,852 75,192 65,216 74,411
=========== =========== ========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 361,836 $ 326,438 $ 375,517 $ 353,701 $ 242,454 $ 96,597
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income........... $ 137,998 $ 113,545 $ 1,440,338 $ 1,391,969
Net realized gain (loss) on
investments................... 321,134 105,416 4,908,488 5,761,094
Net increase (decrease) in
unrealized appreciation of
investments................... (484,320) 482,224 (1,594,718) 1,865,204
---------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations...................... (25,188) 701,185 4,754,108 9,018,267
---------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units...................... 225,241 273,519 1,076,815 4,748,474
Net asset value of units
redeemed or used to meet
contract obligations.......... (906,379) (338,142) (9,200,624) (12,013,129)
---------- ---------- ----------- -----------
Net decrease from unit
transactions.................... (681,138) (64,623) (8,123,809) (7,264,655)
---------- ---------- ----------- -----------
Net increase (decrease) in net
assets.......................... (706,326) 636,562 (3,369,701) 1,753,612
Net assets beginning of period... 4,088,659 3,452,097 47,608,557 45,854,945
---------- ---------- ----------- -----------
Net assets end of period*........ $3,382,333 $4,088,659 $44,238,856 $47,608,557
========== ========== =========== ===========
Units outstanding beginning of
period.......................... 117,879 120,183 932,054 1,084,412
Units issued during the period... 5,148 8,340 19,512 98,535
Units redeemed during the
period.......................... (23,929) (10,644) (166,988) (250,893)
---------- ---------- ----------- -----------
Units outstanding end of
period.......................... 99,098 117,879 784,578 932,054
========== ========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 309,374 $ 171,376 $ 2,841,831 $ 1,401,493
</TABLE>
See notes to financial statements.
43
<PAGE> 60
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS:
MONY America Variable Account A (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support flexible payment variable annuity policies.
These policies are issued by MONY America, which is a wholly-owned subsidiary of
The Mutual Life Insurance Company of New York ("MONY").
There are currently seventeen subaccounts within the Variable Account, and
each invests only in a corresponding portfolio of the MONY Series Fund, Inc.
(the "Fund"), the Enterprise Accumulation Trust ("Enterprise") or the OCC
Accumulation Trust ("OCC") (formerly known as Quest for Value Accumulation
Trust) (collectively, the "Funds"). The Funds are registered under the 1940 Act
as open end, diversified, management investment companies.
On March 31, 1997, the Variable Account effected a substitution by
redeeming shares of the OCC Accumulation Trust Bond Portfolio and using the
redemption proceeds to purchase shares of the OCC Accumulation Trust U.S.
Government Income Portfolio. The substitution was effected through a redemption
of assets in-kind and was deemed a non-taxable event for the Variable Account
and OCC.
A full presentation of the related financial statements and footnotes of
the Fund, Enterprise and OCC are contained on pages 60 to 93; 95 to 126; and 127
to 148; respectively, and should be read in conjunction with these financial
statements.
2. SIGNIFICANT ACCOUNTING POLICIES:
Investments:
The investment in shares of each of the respective portfolios is stated at
the net asset value of each portfolio. Except for the Money Market Portfolios,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Funds. For the Money Market Portfolios,
the net asset values are based on the amortized cost of the securities held
which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS:
MONY America is the legal owner of the assets of the Variable Account.
Purchase payments received from MONY America by the Variable Account
represent gross purchase payments recorded by MONY America less deductions
retained for any premium taxes.
A periodic deduction is made from the cash value of the contract for the
Annual Contract Charge. The deduction is for the expenses of administration and
is treated by the Variable Account as a contractholder redemption. The amount
deducted for all subaccounts for 1998 was $1,282,454.
44
<PAGE> 61
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 1.25 percent of aggregate
average daily net assets. As investment adviser to the Fund, it receives amounts
paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investment In MONY Series Fund, Inc. at cost, at June 30, 1998 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ------------ ----------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares................ 41,584 53,064 3,224,928 4,425,047 81,189 130,080,440 1,926,857
Amount................ $ 984,605 $ 945,478 $34,084,201 $54,686,512 $1,184,974 $ 130,080,440 $20,107,823
---------- ---------- ----------- ----------- ---------- -------------- -----------
Shares acquired:
Shares................ 663 777 594,059 1,063,448 1,863 312,902,669 659,631
Amount................ $ 23,116 $ 21,081 $ 6,573,236 $14,397,498 $ 36,434 $ 312,902,669 $ 7,132,456
Shares received for
reinvestment of
dividends:
Shares................ 7,190 7,830 187,903 275,002 19,314 3,130,844 86,413
Amount................ $ 243,469 $ 202,166 $ 2,012,440 $ 3,580,527 $ 341,271 $ 3,130,844 $ 914,254
Shares redeemed:
Shares................ (5,127) (10,646) (260,181) (642,432) (14,454) (309,471,376) (263,024)
Amount................ $ (100,349) $ (158,504) $(2,686,150) $(7,384,727) $ (184,305) $ (309,471,376) $(2,676,185)
---------- ---------- ----------- ----------- ---------- -------------- -----------
Net change:
Shares................ 2,726 (2,039) 521,781 696,018 6,723 6,562,137 483,020
Amount................ $ 166,236 $ 64,743 $ 5,899,526 $10,593,298 $ 193,400 $ 6,562,137 $ 5,370,525
---------- ---------- ----------- ----------- ---------- -------------- -----------
Shares end of period:
Shares................ 44,310 51,025 3,746,709 5,121,065 87,912 136,642,577 2,409,877
Amount................ $1,150,841 $1,010,221 $39,983,727 $65,279,810 $1,378,374 $ 136,642,577 $25,478,348
========== ========== =========== =========== ========== ============== ===========
</TABLE>
45
<PAGE> 62
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investment in Enterprise Accumulation Trust at cost, at June 30, 1998
(unaudited) consist of the following:
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL
EQUITY VALUE MANAGED GROWTH HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares................................. 12,576,209 11,885,385 56,717,058 10,546,365 10,310,273
Amount................................. $353,820,012 $255,536,588 $1,777,336,359 $64,662,367 $56,709,738
------------ ------------ -------------- ----------- -----------
Shares acquired:
Shares................................. 1,907,028 2,323,957 5,518,776 1,898,912 3,508,837
Amount................................. $ 72,133,229 $ 67,687,783 $ 242,892,314 $12,884,928 $20,342,254
Shares received for reinvestment of
dividends:
Shares................................. 0 0 0 0 453,716
Amount................................. $ 0 $ 0 $ 0 $ 0 $ 2,629,635
Shares redeemed:
Shares................................. (1,148,852) (1,307,701) (4,782,890) (1,780,651) (971,282)
Amount................................. $(23,469,324) $(22,098,593) $ (101,330,768) $(9,951,562) $(5,184,481)
------------ ------------ -------------- ----------- -----------
Net change:
Shares................................. 758,176 1,016,256 735,886 118,261 2,991,271
Amount................................. $ 48,663,905 $ 45,589,190 $ 141,561,546 $ 2,933,366 $17,787,408
------------ ------------ -------------- ----------- -----------
Shares end of period:
Shares................................. 13,334,385 12,901,641 57,452,944 10,664,626 13,301,544
Amount................................. $402,483,917 $301,125,778 $1,918,897,905 $67,595,733 $74,497,146
============ ============ ============== =========== ===========
</TABLE>
Investment in OCC Accumulation Trust at cost, at June 30, 1998 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
US GOVERNMENT
MONEY MARKET INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................................... 1,701,986 122,409 83,514 155,049 1,123,373
Amount..................................... $ 1,701,986 $1,253,838 $1,719,684 $2,921,414 $29,637,161
------------ ---------- ---------- ---------- -----------
Shares acquired:
Shares..................................... 1,022,370 6,626 2,198 8,493 27,076
Amount..................................... $ 1,022,370 $ 69,871 $ 83,663 $ 228,745 $ 1,191,637
Shares received for reinvestment of
dividends:
Shares..................................... 46,172 2,543 4,487 6,108 39,827
Amount..................................... $ 46,172 $ 26,880 $ 165,245 $ 163,330 $ 1,724,922
Shares redeemed:
Shares..................................... (1,177,476) (38,996) (13,410) (35,110) (215,208)
Amount..................................... $(1,177,476) $ (398,543) $ (249,025) $ (614,081) $(4,691,542)
------------ ---------- ---------- ---------- -----------
Net change:
Shares..................................... (108,934) (29,827) (6,725) (20,509) (148,305)
Amount..................................... $ (108,934) $ (301,792) $ (117) $ (222,006) $(1,774,983)
------------ ---------- ---------- ---------- -----------
Shares end of period:
Shares..................................... 1,593,052 92,582 76,789 134,540 975,068
Amount..................................... $ 1,593,052 $ 952,046 $1,719,567 $2,699,408 $27,862,178
============ ========== ========== ========== ===========
</TABLE>
46
<PAGE> 63
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $202,265 $246,287 $8,631,411 $14,781,013 $ 83,762 $23,703,369 $4,357,349
======== ======== ========== =========== ========== =========== ==========
Investments in MONY Series Fund,
Inc., at net asset value
(Note 2)...................... $288,631 $330,444 $8,774,201 $16,028,195 $ 91,215 $23,703,369 $4,431,205
Amount due from MONY............ 0 0 242 913 0 188,046 0
Amount due from MONY Series
Fund, Inc..................... 0 0 3,521 2,105 0 54 616
-------- -------- ---------- ----------- ---------- ----------- ----------
Total assets........... 288,631 330,444 8,777,964 16,031,213 91,215 23,891,469 4,431,821
-------- -------- ---------- ----------- ---------- ----------- ----------
LIABILITIES
Amount due to MONY.............. 0 0 3,521 2,105 0 54 616
Amount due to MONY Series Fund,
Inc........................... 0 0 242 913 0 188,046 0
-------- -------- ---------- ----------- ---------- ----------- ----------
Total liabilities...... 0 0 3,763 3,018 0 188,100 616
-------- -------- ---------- ----------- ---------- ----------- ----------
Net assets...................... $288,631 $330,444 $8,774,201 $16,028,195 $ 91,215 $23,703,369 $4,431,205
======== ======== ========== =========== ========== =========== ==========
Net assets consist of:
Contractholders' net
payments.................... $ (3,905) $(29,771) $6,562,467 $10,785,740 $ (172,508) $20,432,655 $4,133,767
Undistributed net investment
income...................... 91,413 176,257 1,930,088 3,430,528 131,208 3,270,714 181,592
Accumulated net realized gain
on investments.............. 114,757 99,801 138,856 564,745 125,062 0 41,990
Unrealized appreciation of
investments................. 86,366 84,157 142,790 1,247,182 7,453 0 73,856
-------- -------- ---------- ----------- ---------- ----------- ----------
Net assets...................... $288,631 $330,444 $8,774,201 $16,028,195 $ 91,215 $23,703,369 $4,431,205
======== ======== ========== =========== ========== =========== ==========
Number of units outstanding*.... 6,343 8,207 470,746 665,014 2,754 1,537,161 365,513
-------- -------- ---------- ----------- ---------- ----------- ----------
Net asset value per unit
outstanding*.................. $ 45.50 $ 40.26 $ 18.64 $ 24.10 $ 33.12 $ 15.42 $ 12.12
======== ======== ========== =========== ========== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
47
<PAGE> 64
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $54,576,805 $36,975,753 $242,626,030 $ 9,092,593 $9,718,100
=========== =========== ============ =========== ==========
Investments in Enterprise Accumulation
Trust, at net asset value (Note 2)..... $71,198,188 $49,045,405 $338,924,836 $10,233,660 $9,961,840
Amount due from MONY..................... 4,420 1,435 25,951 103 96
Amount due from Enterprise Accumulation
Trust.................................. 56,075 21,192 163,234 212 200
----------- ----------- ------------ ----------- ----------
Total assets................... 71,258,683 49,068,032 339,114,021 10,233,975 9,962,136
----------- ----------- ------------ ----------- ----------
LIABILITIES
Amount due to MONY....................... 56,075 21,192 163,234 212 200
Amount due to Enterprise Accumulation
Trust.................................. 4,420 1,435 25,951 103 96
----------- ----------- ------------ ----------- ----------
Total liabilities.............. 60,495 22,627 189,185 315 296
----------- ----------- ------------ ----------- ----------
Net assets............................... $71,198,188 $49,045,405 $338,924,836 $10,233,660 $9,961,840
=========== =========== ============ =========== ==========
Net assets consist of:
Contractholders' net payments.......... $41,129,458 $27,829,850 $160,011,193 $ 8,376,500 $8,768,422
Undistributed net investment income.... 2,407,405 4,630,368 20,775,546 151,995 850,692
Accumulated net realized gain on
investments......................... 11,039,942 4,515,535 61,839,291 564,098 98,986
Unrealized appreciation of
investments......................... 16,621,383 12,069,652 96,298,806 1,141,067 243,740
----------- ----------- ------------ ----------- ----------
Net assets............................... $71,198,188 $49,045,405 $338,924,836 $10,233,660 $9,961,840
=========== =========== ============ =========== ==========
Number of units outstanding*............. 1,551,690 1,143,672 5,774,495 699,305 662,074
----------- ----------- ------------ ----------- ----------
Net asset value per unit outstanding*.... $ 45.88 $ 42.88 $ 58.69 $ 14.63 $ 15.05
=========== =========== ============ =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
48
<PAGE> 65
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)..................... $450,269 $528,659 $202,227 $138,801 $ 7,463,130
======== ======== ======== ======== ===========
Investments in OCC Accumulation Trust, at net
asset value (Note 2)........................... $450,269 $548,102 $330,361 $169,528 $12,837,013
Dividends Receivable............................. 685 940 0 0 0
-------- -------- -------- -------- -----------
Net assets....................................... $450,954 $549,042 $330,361 $169,528 $12,837,013
======== ======== ======== ======== ===========
Net assets consist of:
Contractholders' net payments.................. $390,813 $399,744 $ 62,128 $ (5,875) $ 3,983,941
Undistributed net investment income............ 60,141 134,113 31,555 33,316 759,317
Accumulated net realized gain (loss) on
investments................................. 0 (4,258) 108,544 111,360 2,719,872
Unrealized appreciation of investments......... 0 19,443 128,134 30,727 5,373,883
-------- -------- -------- -------- -----------
Net assets....................................... $450,954 $549,042 $330,361 $169,528 $12,837,013
======== ======== ======== ======== ===========
Number of units outstanding*..................... 31,943 31,144 7,184 4,979 227,749
-------- -------- -------- -------- -----------
Net asset value per unit outstanding*............ $ 14.12 $ 17.63 $ 45.99 $ 34.05 $ 56.36
======== ======== ======== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
49
<PAGE> 66
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................. $ 44,099 $ 51,132 $ 433,654 $ 838,752 $ 25,421 $ 542,634 $ 154,732
Mortality and expense risk
charges (Note 3).............. (1,744) (2,074) (51,171) (91,879) (717) (129,461) (23,929)
-------- -------- ---------- ----------- -------- ------------ ---------
Net investment income........... 42,355 49,058 382,483 746,873 24,704 413,173 130,803
-------- -------- ---------- ----------- -------- ------------ ---------
Realized and unrealized gain
(loss) on investments
(Note 2):
Proceeds from sales........... 47,141 54,822 903,431 1,289,721 72,587 43,299,841 303,839
Cost of shares sold........... (17,856) (26,592) (874,974) (1,087,832) (58,682) (43,299,841) (288,436)
-------- -------- ---------- ----------- -------- ------------ ---------
Net realized gain on
investments................... 29,285 28,230 28,457 201,889 13,905 0 15,403
Net decrease in unrealized
depreciation of investments... (34,426) (48,367) (170,694) (229,074) (22,755) 0 (56,211)
-------- -------- ---------- ----------- -------- ------------ ---------
Net realized and unrealized loss
on investments................ (5,141) (20,137) (142,237) (27,185) (8,850) 0 (40,808)
-------- -------- ---------- ----------- -------- ------------ ---------
Net increase in net assets
resulting from operations..... $ 37,214 $ 28,921 $ 240,246 $ 719,688 $ 15,854 $ 413,173 $ 89,995
======== ======== ========== =========== ======== ============ =========
</TABLE>
See notes to financial statements.
50
<PAGE> 67
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.................... $ 0 $ 0 $ 0 $ 0 $ 326,282
Mortality and expense risk charges
(Note 3)......................... (407,695) (274,176) (1,987,493) (58,210) (52,470)
----------- ----------- ------------ ----------- ---------
Net investment income (loss)....... (407,695) (274,176) (1,987,493) (58,210) 273,812
----------- ----------- ------------ ----------- ---------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.............. 5,404,700 3,482,994 25,098,658 863,265 395,925
Cost of shares sold.............. (2,667,602) (1,989,062) (11,936,538) (725,570) (359,571)
----------- ----------- ------------ ----------- ---------
Net realized gain on investments... 2,737,098 1,493,932 13,162,120 137,695 36,354
Net increase in unrealized
appreciation of investments...... 4,508,409 4,365,930 22,603,374 984,135 15,141
----------- ----------- ------------ ----------- ---------
Net realized and unrealized gain on
investments...................... 7,245,507 5,859,862 35,765,494 1,121,830 51,495
----------- ----------- ------------ ----------- ---------
Net increase in net assets
resulting from operations........ $ 6,837,812 $ 5,585,686 $ 33,778,001 $ 1,063,620 $ 325,307
=========== =========== ============ =========== =========
</TABLE>
See notes to financial statements.
51
<PAGE> 68
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
--------------------------------------------------------------
MONEY
MARKET BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.......................... $ 10,472 $ 14,835 $ 21,723 $ 11,140 $ 459,940
Mortality and expense risk charges
(Note 3)............................... (2,856) (3,506) (2,193) (1,484) (78,222)
-------- -------- -------- -------- ----------
Net investment income.................... 7,616 11,329 19,530 9,656 381,718
-------- -------- -------- -------- ----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................... 38,992 62,184 122,220 129,881 727,785
Cost of shares sold.................... (38,992) (60,155) (61,324) (80,246) (353,700)
-------- -------- -------- -------- ----------
Net realized gain on investments......... 0 2,029 60,896 49,635 374,085
Net increase (decrease) in unrealized
appreciation of investments............ 0 3,896 (38,527) (52,016) 500,083
-------- -------- -------- -------- ----------
Net realized and unrealized gain (loss)
on investments......................... 0 5,925 22,369 (2,381) 874,168
-------- -------- -------- -------- ----------
Net increase in net assets resulting from
operations............................. $ 7,616 $ 17,254 $ 41,899 $ 7,275 $1,255,886
======== ======== ======== ======== ==========
</TABLE>
See notes to financial statements.
52
<PAGE> 69
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 42,355 $ 19,434 $ 49,058 $ 29,596 $ 382,483 $ 284,214
Net realized gain on
investments.................... 29,285 32,694 28,230 13,051 28,457 104,618
Net increase (decrease) in
unrealized appreciation of
investments.................... (34,426) 19,810 (48,367) 37,678 (170,694) 42,476
-------- -------- -------- -------- ---------- -----------
Net increase in net assets
resulting from operations........ 37,214 71,938 28,921 80,325 240,246 431,308
-------- -------- -------- -------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 0 0 0 1,714 1,422,746 2,659,796
Net asset value of units redeemed
or used to meet contract
obligations.................... (40,181) (27,729) (46,366) (4,757) (793,616) (1,677,836)
-------- -------- -------- -------- ---------- -----------
Net increase (decrease) from unit
transactions..................... (40,181) (27,729) (46,366) (3,043) 629,130 981,960
-------- -------- -------- -------- ---------- -----------
Net increase (decrease) in net
assets........................... (2,967) 44,209 (17,445) 77,282 869,376 1,413,268
Net assets beginning of period..... 291,598 247,389 347,889 270,607 7,904,825 6,491,557
-------- -------- -------- -------- ---------- -----------
Net assets end of period*.......... $288,631 $291,598 $330,444 $347,889 $8,774,201 $ 7,904,825
======== ======== ======== ======== ========== ===========
Units outstanding beginning of
period........................... 7,284 7,976 9,384 9,465 436,486 381,313
Units issued during the period..... 0 0 0 619 77,266 152,349
Units redeemed during the period... (941) (692) (1,177) (700) (43,006) (97,176)
-------- -------- -------- -------- ---------- -----------
Units outstanding end of period.... 6,343 7,284 8,207 9,384 470,746 436,486
======== ======== ======== ======== ========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 91,413 $ 71,979 $176,257 $146,661 $1,930,088 $ 1,645,874
<CAPTION>
MONY SERIES FUND, INC.
---------------------------
LONG TERM BOND
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1998 1997
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 746,873 $ 507,617
Net realized gain on
investments.................... 201,889 100,826
Net increase (decrease) in
unrealized appreciation of
investments.................... (229,074) 766,700
----------- -----------
Net increase in net assets
resulting from operations........ 719,688 1,375,143
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,486,923 3,496,284
Net asset value of units redeemed
or used to meet contract
obligations.................... (1,075,928) (1,307,957)
----------- -----------
Net increase (decrease) from unit
transactions..................... 1,410,995 2,188,327
----------- -----------
Net increase (decrease) in net
assets........................... 2,130,683 3,563,470
Net assets beginning of period..... 13,897,512 10,334,042
----------- -----------
Net assets end of period*.......... $16,028,195 $13,897,512
=========== ===========
Units outstanding beginning of
period........................... 604,629 503,775
Units issued during the period..... 106,205 162,590
Units redeemed during the period... (45,820) (61,736)
----------- -----------
Units outstanding end of period.... 665,014 604,629
=========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 3,430,528 $ 2,922,911
</TABLE>
See notes to financial statements.
53
<PAGE> 70
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
---------------------------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income................. $ 24,704 $ 9,492 $ 413,173 $ 748,412 $ 130,803 $ 43,640
Net realized gain on investments...... 13,905 22,559 0 0 15,403 13,453
Net increase (decrease) in unrealized
appreciation of investments......... (22,755) 2,068 0 0 (56,211) 82,489
-------- -------- ----------- ------------ ---------- ----------
Net increase in net assets resulting
from operations....................... 15,854 34,119 413,173 748,412 89,995 139,582
-------- -------- ----------- ------------ ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units............................... 0 674 42,146,330 96,655,000 993,118 1,902,833
Net asset value of units redeemed or
used to meet contract obligations... (62,434) (77,004) (42,190,169) (93,779,042) (230,846) (278,247)
-------- -------- ----------- ------------ ---------- ----------
Net increase (decrease) from unit
transactions.......................... (62,434) (76,330) (43,839) 2,875,958 762,272 1,624,586
-------- -------- ----------- ------------ ---------- ----------
Net increase (decrease) in net assets... (46,580) (42,211) 369,334 3,624,370 852,267 1,764,168
Net assets beginning of period.......... 137,795 180,006 23,334,035 19,709,665 3,578,938 1,814,770
-------- -------- ----------- ------------ ---------- ----------
Net assets end of period*............... $ 91,215 $137,795 $23,703,369 $ 23,334,035 $4,431,205 $3,578,938
======== ======== =========== ============ ========== ==========
Units outstanding beginning of period... 4,707 7,590 1,543,043 1,355,274 302,006 162,102
Units issued during the period.......... 0 34 2,754,170 6,511,788 77,068 164,256
Units redeemed during the period........ (1,953) (2,917) (2,760,052) (6,324,019) (13,561) (24,352)
-------- -------- ----------- ------------ ---------- ----------
Units outstanding end of period......... 2,754 4,707 1,537,161 1,543,043 365,513 302,006
======== ======== =========== ============ ========== ==========
- ---------------
* Includes undistributed net investment
income of: $131,208 $121,716 $ 3,270,714 $ 2,522,303 $ 181,592 $ 137,952
</TABLE>
See notes to financial statements.
54
<PAGE> 71
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (407,695) $ 1,348,889 $ (274,176) $ 2,969,759 $ (1,987,493) $ 10,160,903
Net realized gain on
investments.................. 2,737,098 4,582,451 1,493,932 1,806,789 13,162,120 24,484,707
Net increase (decrease) in
unrealized appreciation of
investments.................. 4,508,409 4,305,948 4,365,930 5,408,719 22,603,374 18,352,149
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets
resulting from operations...... 6,837,812 10,237,288 5,585,686 10,185,267 33,778,001 52,997,759
----------- ----------- ----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance
of units..................... 9,895,725 19,541,544 7,117,852 11,606,860 30,062,077 69,610,057
Net asset value of units
redeemed or used to meet
contract obligations......... (4,433,127) (8,148,291) (2,956,063) (4,634,574) (21,981,212) (46,391,571)
----------- ----------- ----------- ----------- ------------ ------------
Net increase from unit
transactions................... 5,462,598 11,393,253 4,161,789 6,972,286 8,080,865 23,218,486
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets....... 12,300,410 21,630,541 9,747,475 17,157,553 41,858,866 76,216,245
Net assets beginning of period... 58,897,778 37,267,237 39,297,930 22,140,377 297,065,970 220,849,725
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of period*........ $71,198,188 $58,897,778 $49,045,405 $39,297,930 $338,924,836 $297,065,970
=========== =========== =========== =========== ============ ============
Units outstanding beginning of
period......................... 1,428,789 1,123,086 1,042,727 837,807 5,633,476 5,150,485
Units issued during the period... 221,976 526,272 173,146 347,201 525,870 1,464,377
Units redeemed during the
period......................... (99,075) (220,569) (72,201) (142,281) (384,851) (981,386)
----------- ----------- ----------- ----------- ------------ ------------
Units outstanding end of
period......................... 1,551,690 1,428,789 1,143,672 1,042,727 5,774,495 5,633,476
=========== =========== =========== =========== ============ ============
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 2,407,405 $ 1,485,740 $ 4,630,368 $ 1,944,441 $ 20,775,546 $ 12,983,854
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (58,210) $ 157,687 $ 273,812 $ 392,417
Net realized gain on
investments.................. 137,695 315,164 36,354 42,368
Net increase (decrease) in
unrealized appreciation of
investments.................. 984,135 (304,765) 15,141 131,750
----------- ----------- ---------- ----------
Net increase in net assets
resulting from operations...... 1,063,620 168,086 325,307 566,535
----------- ----------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units..................... 1,338,960 3,852,044 2,635,339 3,929,223
Net asset value of units
redeemed or used to meet
contract obligations......... (788,738) (1,301,430) (263,868) (420,640)
----------- ----------- ---------- ----------
Net increase from unit
transactions................... 550,222 2,550,614 2,371,471 3,508,583
----------- ----------- ---------- ----------
Net increase in net assets....... 1,613,842 2,718,700 2,696,778 4,075,118
Net assets beginning of period... 8,619,818 5,901,118 7,265,062 3,189,944
----------- ----------- ---------- ----------
Net assets end of period*........ $10,233,660 $ 8,619,818 $9,961,840 $7,265,062
=========== =========== ========== ==========
Units outstanding beginning of
period......................... 664,152 472,752 502,892 247,295
Units issued during the period... 93,104 289,408 176,758 286,812
Units redeemed during the
period......................... (57,951) (98,008) (17,576) (31,215)
----------- ----------- ---------- ----------
Units outstanding end of
period......................... 699,305 664,152 662,074 502,892
=========== =========== ========== ==========
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 151,995 $ (5,692) $ 850,692 $ 458,275
</TABLE>
See notes to financial statements.
55
<PAGE> 72
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........ $ 7,616 $ 17,237 $ 11,329 $ 28,149 $ 19,530 $ 10,790
Net realized gain (loss) on
investments................ 0 0 2,029 (9,584) 60,896 35,842
Net increase (decrease) in
unrealized appreciation of
investments................ 0 0 3,896 12,352 (38,527) 42,275
-------- ----------- -------- -------- --------- ---------
Net increase in net assets
resulting from operations.... 7,616 17,237 17,254 30,917 41,899 88,907
-------- ----------- -------- -------- --------- ---------
From unit transactions:
Net proceeds from the
issuance of units.......... 15,201 1,080,192 0 20,982 16,461 4,581
Net asset value of units
redeemed or used to meet
contract obligations....... (36,135) (1,076,942) (58,678) (30,553) (120,026) (71,904)
-------- ----------- -------- -------- --------- ---------
Net increase (decrease) from
unit transactions............ (20,934) 3,250 (58,678) (9,571) (103,565) (67,323)
-------- ----------- -------- -------- --------- ---------
Net increase (decrease) in
net assets................... (13,318) 20,487 (41,424) 21,346 (61,666) 21,584
Net assets beginning of
period....................... 464,272 443,785 590,466 569,120 392,027 370,443
-------- ----------- -------- -------- --------- ---------
Net assets end of period*...... $450,954 $ 464,272 $549,042 $590,466 $ 330,361 $ 392,027
======== =========== ======== ======== ========= =========
Units outstanding beginning of
period....................... 33,429 33,041 34,521 35,119 9,563 11,304
Units issued during the
period....................... 1,091 78,351 0 1,264 376 153
Units redeemed during the
period....................... (2,577) (77,963) (3,377) (1,862) (2,755) (1,894)
-------- ----------- -------- -------- --------- ---------
Units outstanding end of
period....................... 31,943 33,429 31,144 34,521 7,184 9,563
======== =========== ======== ======== ========= =========
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 60,141 $ 42,904 $134,113 $105,964 $ 31,555 $(406,460)
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income........ $ 9,656 $ 11,908 $ 381,718 $ 378,567
Net realized gain (loss) on
investments................ 49,635 37,759 374,085 1,555,405
Net increase (decrease) in
unrealized appreciation of
investments................ (52,016) 7,206 500,083 369,175
--------- --------- ----------- -----------
Net increase in net assets
resulting from operations.... 7,275 56,873 1,255,886 2,303,147
--------- --------- ----------- -----------
From unit transactions:
Net proceeds from the
issuance of units.......... 30,000 0 22,341 1,042,873
Net asset value of units
redeemed or used to meet
contract obligations....... (128,397) (136,759) (623,190) (3,207,772)
--------- --------- ----------- -----------
Net increase (decrease) from
unit transactions............ (98,397) (136,759) (600,849) (2,164,899)
--------- --------- ----------- -----------
Net increase (decrease) in
net assets................... (91,122) (79,886) 655,037 138,248
Net assets beginning of
period....................... 260,650 340,536 12,181,976 12,043,728
--------- --------- ----------- -----------
Net assets end of period*...... $ 169,528 $ 260,650 $12,837,013 $12,181,976
========= ========= =========== ===========
Units outstanding beginning of
period....................... 7,532 11,883 238,580 284,927
Units issued during the
period....................... 892 0 407 21,763
Units redeemed during the
period....................... (3,445) (4,351) (11,238) (68,110)
--------- --------- ----------- -----------
Units outstanding end of
period....................... 4,979 7,532 227,749 238,580
========= ========= =========== ===========
- ---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 33,316 $(262,424) $ 759,317 $(1,988,461)
</TABLE>
See notes to financial statements.
56
<PAGE> 73
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account A (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Payment Variable Annuity policies. These policies
are issued by MONY.
There are currently seventeen subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc.
("Fund"), Enterprise Accumulation Trust ("Enterprise") or the OCC Accumulation
Trust ("OCC") (formerly the Quest for Value Accumulation Trust) collectively,
the "Funds". The Funds are registered under the 1940 Act as open end,
diversified, management investment companies.
On March 31, 1997, the Variable Account effected a substitution by
redeeming shares of the OCC Accumulation Trust Bond Portfolio and using the
redemption proceeds to purchase shares of the OCC Accumulation Trust U.S.
Government Income Portfolio. The substitution was effected through a redemption
of assets in-kind and was deemed a non-taxable event for the Variable Account
and OCC.
A full presentation of the related financial statements and footnotes of
the Fund, Enterprise and OCC are contained on pages 60 to 93; 95 to 126; and 127
to 148; respectively, and should be read in conjunction with these financial
statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios is stated at
the net asset values of each portfolio. Except for the Money Market Portfolio,
net asset values are based upon market quotations of the securities held in each
of the corresponding portfolios of the Funds. For the Money Market Portfolio,
the net asset values are based on the amortized cost of the securities held
which approximates value.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets held by the Variable Account.
Purchase payments received from MONY by the Variable Account represent
gross purchase payments recorded by MONY less deductions retained for any
premium taxes.
A periodic deduction is made from the cash value of the contract for the
annual contract charge. The deduction is for the expenses of administration and
is treated by the Variable Account as a contractholder redemption. The amount
deducted for all subaccounts for 1998 was $138,799.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 1.25 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
57
<PAGE> 74
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1998 (unaudited)
consist of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................... 8,082 12,837 710,866 1,018,878 6,686 23,334,035 328,644
Amount..................... $170,806 $215,365 $ 7,591,341 $12,421,256 $107,587 $ 23,334,035 $3,448,871
-------- -------- ----------- ----------- -------- ------------ ----------
Shares acquired:
Shares..................... 154 252 134,771 192,415 527 43,126,541 96,878
Amount..................... $ 5,216 $ 6,382 $ 1,481,390 $ 2,608,837 $ 9,436 $ 43,126,541 $1,042,182
Shares received for
reinvestment of dividends:
Shares..................... 1,302 1,980 40,491 64,420 1,439 542,634 14,625
Amount..................... $ 44,099 $ 51,132 $ 433,654 $ 838,752 $ 25,421 $ 542,634 $ 154,732
Shares redeemed:
Shares..................... (1,246) (1,941) (82,629) (95,435) (3,673) (43,299,841) (28,325)
Amount..................... $(17,856) $(26,592) $ (874,974) $(1,087,832) $(58,682) $(43,299,841) $ (288,436)
-------- -------- ----------- ----------- -------- ------------ ----------
Net change:
Shares..................... 210 291 92,633 161,400 (1,707) 369,334 83,178
Amount..................... $ 31,459 $ 30,922 $ 1,040,070 $ 2,359,757 $(23,825) $ 369,334 $ 908,478
-------- -------- ----------- ----------- -------- ------------ ----------
Shares end of period:
Shares..................... 8,292 13,128 803,499 1,180,278 4,979 23,703,369 411,822
Amount..................... $202,265 $246,287 $ 8,631,411 $14,781,013 $ 83,762 $ 23,703,369 $4,357,349
======== ======== =========== =========== ======== ============ ==========
</TABLE>
58
<PAGE> 75
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust, Inc. at cost, at June 30,
1998 (unaudited) consist of the following:
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares.................................... 1,678,478 1,471,833 7,284,600 1,394,793 1,272,340
Amount.................................... $46,784,804 $31,594,208 $223,370,538 $8,462,886 $7,036,463
----------- ----------- ------------ ---------- ----------
Shares acquired:
Shares.................................... 275,201 252,234 703,363 197,251 469,031
Amount.................................... $10,459,603 $ 7,370,607 $ 31,192,030 $1,355,277 $2,714,926
Shares received for reinvestment of
dividends:
Shares.................................... 0 0 0 0 56,301
Amount.................................... $ 0 $ 0 $ 0 $ 0 $ 326,282
Shares redeemed:
Shares.................................... (141,559) (119,178) (565,167) (132,178) (68,186)
Amount.................................... $(2,667,602) $(1,989,062) $(11,936,538) $ (725,570) $ (359,571)
----------- ----------- ------------ ---------- ----------
Net change:
Shares.................................... 133,642 133,056 138,196 65,073 457,146
Amount.................................... $ 7,792,001 $ 5,381,545 $ 19,255,492 $ 629,707 $2,681,637
Shares end of period:
Shares.................................... 1,812,120 1,604,889 7,422,796 1,459,866 1,729,486
Amount.................................... $54,576,805 $36,975,753 $242,626,030 $9,092,593 $9,718,100
=========== =========== ============ ========== ==========
</TABLE>
Investments in OCC Accumulation Trust, Inc. at cost, at June 30, 1998
(unaudited) consist of the following:
<TABLE>
<CAPTION>
MONEY US GOVERNMENT
MARKET INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ------------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares............................................ 464,272 56,181 10,734 9,884 287,446
Amount............................................ $464,272 $574,919 $225,366 $177,907 $7,308,176
-------- -------- -------- -------- ----------
Shares acquired:
Shares............................................ 15,202 0 438 1,170 1,099
Amount............................................ $ 15,202 $ 0 $ 16,462 $ 30,000 $ 48,714
Shares received for reinvestment of dividends:
Shares............................................ 9,787 1,315 590 417 10,620
Amount............................................ $ 9,787 $ 13,895 $ 21,723 $ 11,140 $ 459,940
Shares redeemed:
Shares............................................ (38,992) (5,886) (3,302) (4,728) (16,225)
Amount............................................ $(38,992) $(60,155) $(61,324) $(80,246) $ (353,700)
-------- -------- -------- -------- ----------
Net change:
Shares............................................ (14,003) (4,571) (2,274) (3,141) (4,506)
Amount............................................ $(14,003) $(46,260) $(23,139) $(39,106) $ 154,954
-------- -------- -------- -------- ----------
Shares end of period:
Shares............................................ 450,269 51,610 8,460 6,743 282,940
Amount............................................ $450,269 $528,659 $202,227 $138,801 $7,463,130
======== ======== ======== ======== ==========
</TABLE>
59
<PAGE> 76
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
With the economic and earnings uncertainties caused by the problems in
Asia, investors have moved strongly toward companies offering above average
growth and earnings predictability. The Equity Growth Portfolio's strategy has
similar characteristics. Healthcare, with an emphasis on pharmaceutical, is an
overweight. Technology has been a strong performing sector and continues as an
area of emphasis. The personal computer and software stocks are represented as
well as newer areas such as communications equipment.
These sectors are high growth and are correspondingly highly valued. These
investments are complemented by several sectors, which are more reasonably
valued, but have future potential. One is financial, where the consolidation in
banks is ongoing, and the insurance sector is also experiencing some mergers.
The other sector is energy, which has been depressed by Asia and by oversupply.
EQUITY INCOME PORTFOLIO
In this environment defensive qualities and stable earnings will be
emphasized in the Portfolio's strategy. This means a continued emphasis on
utilities -- both electric and telephone, and energy -- both natural gas and
international oils. Financial stocks continue as an overweight; industry
consolidation is ongoing and earnings are still coming through. The healthcare
stocks are also emphasized both for earnings growth and predictability. They are
relatively high priced but have attractive new product flows and decent yields.
Cyclical stocks were hit very hard during the month of June as investors
moved toward growth and technology stocks. The capital spending and basic
materials sectors, as a result, look attractive on a value basis. They will,
however, need some resolution of the Asian crisis before they come back into
favor.
60
<PAGE> 77
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
The Intermediate Term Bond Portfolio is a diversified U.S. Treasury and
corporate bond fund that seeks to maximize income and capital appreciation
through the investment in bonds with maturities averaging between four and eight
years. The Portfolio maintained an average maturity of 5.09 years as of June 30,
1998.
For the quarter ended June 30, 1998, the Portfolio earned a total return of
1.96%. For the one year period ended June 30, 1998, the Portfolio earned a total
return of 8.63% and for the five and ten year periods the Portfolio earned an
average annual return of 5.98% and 7.70% respectively.
The bond market put in another quarter of satisfactory performance, as
interest rates continued their descent to historical low levels. Interest rates,
as measured by the benchmark five-year U.S. Treasury, declined 14 basis points
to yield 5.47%. The yield curve, as measured by the spread differential between
the 2-yr U.S. Treasury note and the 30-yr U.S. Treasury bond, flattened
significantly, as short rates remained anchored by the Fed Funds rate (currently
5.5%) and long rates declined as the "inflation premium" compressed.
Interest rates declined during the second quarter, as demand for U.S.
Treasury securities increased dramatically on a "flight to quality" by global
investors who viewed the U.S. as a safe haven in moments of turmoil that
emanated from Asia and Russia. The domestic economy finally felt the impact of
the Asian flu, and growth slowed considerably, preventing the Federal Reserve
from changing monetary policy. Inflation remained subdued aided in part by low
oil prices and weak global commodities pricing. Consumer prices rose at a 2.5%
annual rate during the first half of 1998.
Our outlook for the third quarter is that rates will return to their
previous trading range, with the long bond yielding between 5 3/4% and 6%, as
two counterbalancing forces continue to work against one another: a strong
domestic economy about to cause inflation to start accelerating, and a
financially weak Asia that could continue to slow down global growth. On the
technical side, the market will be supported by a considerable reduction in
supply of Treasury securities given the current budget surplus. As for the
corporate sector, earnings have been in line with expectations. Spreads are
expected to hold in and potentially tighten in the BBB category, which has
lagged the market.
The Portfolio is currently invested in corporate issuers, comprising 49% of
total invested assets. We have increased the holdings of U.S. Treasury issues
and they now make up 29% of the Portfolio. Mortgage-backed securities represent
11% of the Portfolio, asset-backed securities 3% and the balance is in cash
equivalents. The average Moody's rating on issues in the Portfolio is Aa3,
reflecting emphasis on higher quality debt issuers.
61
<PAGE> 78
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
The Long Term Bond Portfolio is a diversified U.S. Treasury and corporate
bond fund that seeks to maximize income and capital appreciation through the
investment in bonds with maturities generally longer than eight years. The
Portfolio's performance is expected to be more volatile than other fixed income
accounts with shorter average maturities, with both the Portfolio's risk and
ultimate return expected to be greater. The Portfolio had an average maturity of
18.7 years and a duration of 9.63 years as of June 30, 1998.
For the quarter ended June 30, 1998, the Portfolio earned a total return of
4.3%. For the one year period ended June 30, 1998, the Portfolio earned a total
return of 16.99% and for the five and ten year periods the Portfolio earned an
average annual return of 8.71% and 10.57% respectively.
The bond market continued with another strong quarter, as interest rates
continued their descent to historically low levels with the thirty-year U.S.
Treasury closing the quarter at 5.63%. The yield curve, as measured by the
spread differential between the 2-yr U.S. Treasury note and the 30-yr U.S.
Treasury bond, flattened significantly based on continued benign inflation and
the assumption that Federal Reserve will keep interest rates steady for the
foreseeable future.
Interest rates declined significantly during the second quarter, mainly in
part due to the "flight to quality" to U.S. Treasury securities by global
investors who view the U.S. as the only safe haven in moments of turmoil
emanating from Asia and Russia. This situation prevented the Federal Reserve
from changing monetary policy despite the exuberant strength of the domestic
economy. Inflation remained subdued aided in part by record low oil prices and
weak global commodities pricing.
Our outlook for the third quarter is that rates will return to their
previous trading range with the long bond yielding between 5 3/4% and 6%, as two
counterbalancing forces work against one another. On one hand, we have a very
strong domestic economy, which is putting pressure on corporations' margins and
about to cause inflation to start accelerating, whereas on the other hand, there
is a financially weak Asia that could slow down global growth. On the technical
side, the market will continue to be supported by a considerable reduction in
supply of Treasury securities given the current budget surplus. As for the
corporate sector, earnings have been in line with expectations. Spreads will
most likely hold in and potentially tighten in the BBB category, which has
lagged the market. The Portfolio has maintained its overweight position in the
corporate sector though we continue to incrementally add Treasuries to take
advantage of the favorable interest rate movements. During the quarter, we
reduced our energy exposure by selling Apache Corporation due to lower than
expected oil prices and purchased Tyco International, a conglomerate operated by
a highly regarded management team. We continue to maintain a core group on
credit holdings based on market dominance, superb management, and stability of
earnings throughout market cycles. Some of these credits are GE, Boeing, Fifth
Third Bank, and USA Waste. Over the near term we will be looking at
opportunities in the cyclical areas.
The Portfolio is currently invested in 29 corporate issuers, comprising 44%
of total invested assets, U.S. Treasury issues represent 38%, with 7% in
mortgage and asset-backed securities. The remaining 11% represent cash
equivalents. Our continued emphasis on higher quality is reflected in the
average Moody's rating on issues in the Portfolio is Aa2.
62
<PAGE> 79
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
The equity markets paused in the second quarter, easing sideways from their
rapid climb earlier in the year. Renewed economic weakness in Asia negatively
affected several profit margins in several business sectors, including
technology exporters and commodity producers and processors. Most businesses
without exposure to the Asian market continued to see strong operating
conditions. Stock performance was in general tied to capitalization: the larger
blue-chips performed well, while smaller companies lagged. Perceptions of a
cooling economy boosted the bond market: interest rates ended the quarter
slightly lower from where they started. The benchmark S&P 500 Index was up 3.32%
for the quarter, while the Russell 2000 Index of smaller stocks was down 4.66%.
The benchmark Lehman Brothers Government/Corporate Bond Index rose by 2.62%.
We remain cautious on the markets in light of record high indicators of
valuation, but see continued economic expansion as easing the potential for any
significant downside move. In sum, we believe most of the upside in the market
for 1998 has already taken place.
For the quarter ended June 30,1998, the Portfolio earned a total return of
3.67%. For the one year period ending June 30, 1998, the Portfolio earned a
total return of 23.20%. For the five and ten year periods ending June 30, 1998,
the Portfolio earned an average annual return of 16.75% and 13.53% respectively.
These returns take into account charges imposed by the Portfolio. Additional
charges are imposed by the Variable Accounts. Of course, past performance does
not guarantee future investment results.
As of June 30, 1998, the Diversified Portfolio was invested 80% in common
stocks, 17% in bonds, and 3% in money-market equivalents.
63
<PAGE> 80
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
The Government Securities Portfolio is a bond fund that seeks to maximize
income and capital appreciation through the investment in high quality debt
obligations issued or guaranteed by the U.S. Government, its Agencies, and
instrumentalities. The Portfolio is expected to have a dollar weighted average
life between one and five years under most circumstances. The Portfolio had an
average maturity of 3.7 years at June 30, 1998.
For the quarter ended June 30, 1998, the Portfolio earned a total return of
1.7%. For the one year period ended June 30, 1998, the Portfolio earned a total
return of 7.16% and 4.92% for the five year period. Since inception on May 1,
1991, the Portfolio earned an average annual return of 6.92% for the period
ending June 30, 1998.
The U.S. Treasury market had a generally positive tone to it in the second
quarter. International investors, fleeing the volatility of Asian and Central
European markets, provided a strong demand for what are considered the safest
investment: U.S. Treasuries. That capital flight, plus an easing domestic
economy and generally controlled inflation, pushed interest rates lower by
10 - 25 basis points (hundredths of a percentage point). Rates fell most
noticeably in longer maturity bonds, closing the quarter near historical lows.
This "flattened" yield curve meant that there was little to no additional yield
offered to the buyer of securities further out the maturity spectrum.
Going into the third quarter, we see nothing on the horizon to upset the
balance between continued sustainable domestic growth, and low inflation (aided
by weak Asian markets). Interest rates should tend to drift within the range
that has governed the markets for most of the year, currently allowing room for
slightly higher yields in the months ahead.
The Portfolio is currently invested 100% in U.S. Treasury and Agency
obligations. Investments made in the Government Securities Portfolio are not
insured nor guaranteed by the U.S. Government.
64
<PAGE> 81
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
Over the course of the second quarter of 1998, the bond market experienced
another bout of relatively strong volatility as positive or negative
developments in the efforts to resolve the difficulties in Asia largely governed
the direction of trading. Despite the renewed turbulence, interest rates
remained range bound during the period (the 30-year bond trading between 5.57%
and 6.07%). Concerns regarding the Federal Reserve Board's willingness to alter
monetary policy via a change in the overnight Fed Funds rate were put aside as
the bond market began to trade in lockstep with yen/dollar movements during the
latter part of the quarter. Investors' focus lay on the prospects for the
Japanese government and regulatory apparatus to deal with (1) the potential
collapse of Japan's undercapitalized banking system under the weight of its $600
billion in bad loans and (2) the need to stimulate the Japanese economy to pull
Japan out of its recession and give a lift to other ailing Asian economies.
Skepticism persists over whether Japan's political and bureaucratic
establishment has the fortitude and ability to carry out long needed reforms.
Against this backdrop, the U.S. economy continues to move forward, although the
second quarter seems to represent a slowdown from the first quarter's blistering
4.8% real GDP pace. The Asian drag appears to have definitely stunted second
quarter real GDP growth, probably down to 1%. While there were certainly soft
spots such as trade and capital investment, many pockets of strength remain
(housing, construction and autos, for example). Second quarter monthly nonfarm
payroll growth averaged 278,000 (vs. 205,000 in the first quarter). Thus, the
unemployment rate fell to 4.5% at quarter end. The levels for hours worked,
hourly earnings and consumer confidence all remain healthy. Inflation has been
negligible in both the consumer and producer sectors. The CPI increased a
manageable 0.3% in May and 1.7% year over year. Wholesale prices, as reflected
in the PPI, fell 0.1% in June and dropped 0.8% year over year. Wage inflation
has picked up but has not yet been passed through in the form of higher prices
to consumers, mainly due to very weak commodities prices (oil, for example) due
in part to the Asian situation. Consequently, while economic measures point to a
healthy economy that may be experiencing somewhat of a pause before rebounding
in the third quarter, mild inflation and uncertainty over Asia's ability to
address its problems have left the Fed on hold as far as a change in interest
rates. Nevertheless, given (1) the 30-year Treasury bond trading almost on top
of Fed Funds (target of 5.50%), (2) the Fed's tightening bias and (3) building
wage pressures, something seems likely to give in the second half of 1998 as
market expectations may not be fulfilled.
The yield curve flattened significantly in the second quarter, particularly
in the term area two years and longer. Interest rates on the long bond dropped
30 basis points (1/100 of a percentage point) during the quarter from a yield of
5.93% at March 31, 1998 to 5.63% at the end of the second quarter. The short end
also rallied, albeit modestly, as evidenced by the three month T-bill's four
basis point drops in yield from 5.13% at March 31, 1998 to 5.09% at quarter end.
With the Fed having formally adopted a tightening bias during the second
quarter, expectations are that the Fed's next move will be an upward adjustment
in the Fed Funds rate. However, market sentiment on the timing of such a move is
that the Fed is at least several months away from carrying out a tightening. The
average maturity of the Portfolio will be extended selectively to capitalize on
opportunities where the Portfolio will be rewarded for duration extension. Such
opportunities have become increasingly available toward the end of the second
quarter. At June 30, 1998, the average maturity of the Portfolio was
approximately 56.1 days.
The Portfolio continues to be invested in high quality short-term
instruments, principally commercial paper. Our investment strategy is to
emphasize purchases of 30 - 90 day maturities to provide flexibility to respond
to any changes in the market without sacrificing current income. The 30-day and
7-day current yields of the Portfolio were 5.16% and 5.15%, respectively, as of
June 30, 1998.
Investments made in the Money Market Portfolio are not insured nor
guaranteed by the U.S. government. There is no assurance that the Portfolio will
maintain a steady net asset value.
65
<PAGE> 82
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
COMMON STOCKS -- 93.0%
- ------------------------------------------------------------------
<S> <C> <C>
AIR TRANSPORTATION -- 3.5%
AMR Corp.* 400 $ 33,300
Delta Airlines Inc. 300 38,775
UAL Corp.* 400 31,200
----------
103,275
----------
AUTOMOBILES -- 2.3%
Ford Motor Co. 600 35,400
General Motors Corp. Class (E) 500 33,406
----------
68,806
----------
BANKS/MAJOR -- 2.9%
BankAmerica Corp. 300 25,931
Chase Manhattan Corp. 400 30,200
Citicorp 200 29,850
----------
85,981
----------
BANKS/REGIONAL -- 5.1%
BankBoston Corp. 600 33,375
First Union Corp. 500 29,125
Fleet Financial Group, Inc. 300 25,050
Mellon Bank Corp. 500 34,813
NationsBank Corp. 400 30,600
----------
152,963
----------
BEVERAGES-SOFT DRINKS -- 2.6%
Coca-Cola Co. 900 76,950
----------
BIO-TECHNOLOGIES -- 0.9%
Amgen, Inc.* 400 26,150
----------
CABLE TELEVISION -- 1.4%
Comcast Corp. Class A 1,000 40,593
----------
CHEMICALS -- 3.0%
duPont (E.I.) de Nemours & Co. 500 37,312
Hercules, Inc. 400 16,450
Monsanto, Co. 500 27,938
Solutia Inc. 300 8,606
----------
90,306
----------
COSMETICS -- 0.8%
Gillette Co. 400 22,675
----------
DRUGS -- 8.1%
American Home Products Corp. 600 31,050
Bristol Meyers Sqiubb Co. 300 34,481
Lilly (Eli) & Co. 400 26,425
Merck & Co., Inc. 100 13,375
Pfizer Inc. 400 43,475
Schering-Plough Corp. 300 27,487
Smithkline Beecham, PLC, ADR+ 400 24,200
Warner Lambert Co. 600 41,625
----------
242,118
----------
ELECTRICAL EQUIPMENT -- 4.3%
Emerson Electric Co. 600 36,225
General Electric Co. 1,000 91,000
----------
127,225
----------
ELECTRONICS -- 3.6%
Applied Materials, Inc.* 300 8,850
Hewlett-Packard Co. 400 23,950
Intel Corp. 700 51,887
Texas Instruments, Inc. 400 23,325
----------
108,012
----------
ENTERTAINMENT -- 3.4%
Disney (Walt) Co. 400 42,025
Ensco International 400 6,950
Time Warner, Inc. 600 51,262
----------
100,237
----------
FINANCIAL SERVICES -- 1.9%
American Express Co. 200 22,800
Associates First Capital Corp. 131 10,071
Morgan (JP) Co. 200 23,425
----------
56,296
----------
HOSPITAL MANAGEMENT -- 2.8%
Aetna Inc. 300 22,838
Sunrise Assisted Living, Inc.* 1,000 34,375
United Healthcare Corp. 400 25,400
----------
82,613
----------
HOSPITAL SUPPLIES -- 1.2%
Johnson & Johnson 500 36,875
----------
INSURANCE -- 3.7%
American International Group,
Inc. 400 58,400
General Re Corp. 200 50,700
----------
109,100
----------
MACHINERY -- 1.2%
Caterpillar, Inc. 300 15,863
Deere & Co. 400 21,150
----------
37,013
----------
MEDIA -- 0.2%
Cumulas Media Inc.* 500 7,281
----------
METALS -- 0.6%
USX- Marathon Group 500 17,156
----------
NATURAL GAS -- 0.5%
Marine Drilling Corp.* 900 14,400
----------
OFFICE & BUSINESS EQUIPMENT -- 7.3%
Compaq Computer Corp. 800 22,700
Dell Computer Corp.* 500 46,406
International Business
Machines Corp. 300 34,443
Microsoft, Corp.* 600 65,025
Oracle Corp.* 600 14,737
Sun Microsystems, Inc.* 800 34,750
----------
218,061
----------
OIL -- DOMESTIC -- 0.8%
Amoco Corp. 200 8,325
Atlantic Richfield Co. 200 15,625
----------
23,950
----------
OIL -- INTERNATIONAL -- 4.1%
British Petroleum, PLC, ADR+ 200 17,650
Chevron Corp. 300 24,919
Exxon Corp. 300 21,394
Mobil Corp. 300 22,987
Royal Dutch Petroleum Co. 400 21,925
Texaco, Inc. 200 11,937
----------
120,812
----------
</TABLE>
See notes to financial statements.
66
<PAGE> 83
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
OIL -- SERVICES -- 3.9%
Baker Hughes, Inc. 300 $ 10,369
B.J. Services* 300 8,719
Diamond Offshore Drilling,
Inc. 400 16,000
EVI Inc.* 400 14,850
Halliburton Co. 400 17,825
Noble Drilling Corp.* 500 12,031
R&B Falcon Corp.* 700 15,837
Schlumberger Ltd. 300 20,493
----------
116,124
----------
PAPER -- 0.9%
Fort James Corp. 600 26,700
----------
RETAIL -- 4.5%
Dayton-Hudson Corp. 600 29,100
GAP (The) Inc. 750 46,219
Home Depot, Inc. 500 41,531
Wal-Mart Stores* 300 18,225
----------
135,075
----------
RESTAURANTS -- 0.2%
McDonald's Corp. 100 6,900
----------
SOAPS -- 1.2%
Procter & Gamble Co. 400 36,425
----------
TELECOMMUNICATIONS -- 13.6%
ADC Telecommunications* 200 7,306
China Telecom Hong Kong, Ltd.,
ADR+* 500 17,281
Cisco Systems, Inc.* 600 55,237
Ericsson, L.M. 1,000 28,625
General Instrument* 200 5,437
L-3 Communications Holdings
Inc.* 500 16,344
Lucent Technologies Inc. 500 41,594
Nokia Corp. 400 29,025
Qwest Communications
International Inc.* 1,000 34,875
Scientific-Atlanta* 200 5,075
Sprint, Corp. 400 28,200
Tele Communications Inc.,
Series A* 1,000 38,437
Teleport Communications Group
Inc. Class A* 600 32,550
Tellabs, Inc.* 100 7,162
Worldcom Inc.* 1,200 58,123
----------
405,271
----------
TOBACCO -- 0.7%
Philip Morris Cos., Inc. 500 $ 19,688
----------
U.S. AGENCY OBLIGATIONS -- 1.8%
Federal Home Loan Mortgage
Corp. 500 23,531
Federal National Mortgage
Assn. 500 30,375
----------
53,906
----------
TOTAL COMMON STOCKS
(COST $1,745,739) $2,768,937
- ------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
--------------------------------
COMMERCIAL PAPER -- 3.4%
- ------------------------------------------------------------------
<S> <C> <C>
Sears Roebuck Acceptance Corp.
5.52%, due 07/24/98 (COST
$99,647) $100,000 $ 99,647
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY -- 3.4%
- ------------------------------------------------------------------
Federal National Mortgage Assn.
5.41%, due 07/15/98 (COST
$99,790) $100,000 $ 99,790
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $1,945,176) -- 99.8% $2,968,374
OTHER ASSETS LESS LIABILITIES -- 0.2% 5,686
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $2,974,060
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1998 is $1,946,212.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $1,045,725
Aggregate gross unrealized depreciation (23,563)
----------
Net unrealized appreciation $1,022,162
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ ADR = American Depository Receipts.
Percentages are based on net assets.
67
<PAGE> 84
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
COMMON STOCKS -- 96.9%
- ------------------------------------------------------------------
<S> <C> <C>
AEROSPACE/DEFENSE -- 1.6%
Northrop Grumman Corp. 1,000 $ 103,125
United Technologies Corp. 2,500 231,250
-----------
334,375
-----------
AUTOMOBILES -- 2.6%
Ford Motor Co. 5,000 295,000
General Motors Corp. 3,500 233,842
-----------
528,842
-----------
AUTOMOTIVE PARTS -- 2.0%
Dana Corp. 4,000 214,000
Eaton Corp. 2,500 194,375
-----------
408,375
-----------
BANKS/MAJOR -- 3.9%
Bank of New York, Inc. 4,000 242,748
BankAmerica Corp. 2,200 190,161
Bankers Trust New York Corp. 1,200 139,274
Chase Manhattan Corp. 3,000 226,500
-----------
798,683
-----------
BANKS/REGIONAL -- 6.1%
BankBoston Corp. 5,000 278,125
First Union Corp. 3,500 203,875
Fleet Financial Group, Inc. 2,500 208,750
Mellon Bank Corp. 3,000 208,875
NationsBank Corp. 2,500 191,250
Wells Fargo & Co. 400 147,600
-----------
1,238,475
-----------
CHEMICALS -- 2.5%
duPont (E.I.) de Nemours &
Co. 3,000 223,875
Olin Corp. 4,000 166,748
Rohm & Haas Co. 1,200 124,724
-----------
515,347
-----------
CONGLOMERATES -- 2.8%
General Signal Corp. 4,000 144,000
Harsco Corp. 4,000 183,248
Textron Inc. 3,500 250,904
-----------
578,152
-----------
COSMETICS -- 1.5%
Avon Products, Inc. 4,000 310,000
-----------
DRUGS -- 8.5%
American Home Products Corp. 7,000 362,250
Baxter International, Inc. 4,000 215,248
Bristol Myers Squibb Co. 2,500 287,343
Lilly (Eli) & Co. 2,000 132,124
Merck and Co., Inc. 1,200 160,500
Schering-Plough Corp. 1,300 119,113
SmithKline Beecham PLC, ADR+ 4,000 242,000
Warner Lambert Co. 3,000 208,125
-----------
1,726,703
-----------
ELECTRICAL EQUIPMENT -- 4.8%
Emerson Electric Co. 4,000 241,500
General Electric Co. 8,000 728,000
-----------
969,500
-----------
ELECTRONICS -- 2.0%
AMP, Inc. 6,000 206,250
Thomas & Betts Corp. 4,000 197,000
-----------
403,250
-----------
FINANCIAL SERVICES -- 0.7%
Morgan (JP) Co. 1,200 140,550
-----------
FOREST PRODUCTS -- 0.7%
Weyerhaeuser Co. 3,000 138,561
-----------
INSURANCE -- 3.9%
CIGNA Corp. 4,500 310,500
Lincoln National Corp. 3,000 274,125
St. Paul Cos., Inc. 5,000 210,310
-----------
794,935
-----------
MACHINERY -- 2.5%
Caterpillar Tractor Co. 3,500 185,063
Cooper Industries, Inc. 3,000 164,811
Timken Co. 5,000 154,060
-----------
503,934
-----------
METALS -- 1.7%
Carpenter Technology Corp. 3,000 150,750
Reynolds Metals Co. 1,000 55,937
USX-Marathon Group 4,000 137,248
-----------
343,935
-----------
MISCELLANEOUS -- 1.4%
Minnesota Mining &
Manufacturing Co. 2,000 164,374
Public Storage Inc. 4,000 112,000
-----------
276,374
-----------
NATURAL GAS -- 4.1%
Consolidated Natural Gas Co. 4,000 235,500
El Paso Natural Gas Co. 7,000 267,750
Enron Corp. 4,000 216,248
Questar, Corp. 6,000 117,750
-----------
837,248
-----------
OFFICE & BUSINESS EQUIP. --3.3%
Pitney-Bowes, Inc. 5,500 264,688
Xerox Corp. 4,000 406,500
-----------
671,188
-----------
OIL -- DOMESTIC -- 1.2%
Amoco, Corp. 2,500 104,063
Atlantic Richfield Co. 1,800 140,625
-----------
244,688
-----------
OIL -- INTERNATIONAL -- 5.0%
British Petroleum, PLC, ADR+ 1,500 132,375
Chevron Corp. 2,000 166,124
Exxon Corp. 3,000 213,936
Mobil Corp. 2,800 214,550
Royal Dutch Petroleum Co. 3,000 164,436
Texaco, Inc. 2,000 119,374
-----------
1,010,795
-----------
OIL -- SERVICES &
DRILLING -- 2.9%
Dresser Industries, Inc. 5,000 220,310
Williams (The) Companies,
Inc. 11,000 371,250
-----------
591,560
-----------
</TABLE>
See notes to financial statements.
68
<PAGE> 85
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
PAPER -- 2.0%
Georgia-Pacific Corp. 2,000 $ 117,874
International Paper Co. 3,500 150,500
Union Camp Corp. 3,000 148,875
-----------
417,249
-----------
PHOTOGRAPHY -- 0.4%
Eastman Kodak Co. 1,000 73,062
-----------
PUBLISHING -- 1.4%
McGraw-Hill Companies, Inc. 3,500 285,467
-----------
REAL ESTATE INVESTMENT
TRUSTS -- 4.9%
Avalon Bay Communities, Inc. 2,000 76,000
Crescent Real Estate Equities
Trust 4,000 134,500
Developers Diversified Realty
Corp. 2,500 97,968
Equity Office Properties
Trust 4,000 113,500
Equity Residential Properties
Trust 2,000 94,874
Felcor Suite Hotels Inc. 3,500 109,813
Health Care Property
Investors, Inc. 5,000 180,310
Irvine Apartment Communities,
Inc. 3,500 101,280
Starwood Hotels 1,800 86,962
-----------
995,207
-----------
RETAIL SERVICES -- 2.3%
Penney (J.C.) & Co., Inc. 3,000 216,936
Sears Roebuck & Co. 4,000 244,248
-----------
461,184
-----------
SAVINGS & LOAN -- 2.1%
Ahmanson (H.F.) & Co. 3,000 213,000
Washington Mutual Inc. 5,000 217,185
-----------
430,185
-----------
SOAPS -- 0.9%
Colgate-Palmolive Co. 2,000 176,000
-----------
TELECOMMUNICATIONS EQUIPMENT -- 1.1%
Harris Corp. 5,000 223,435
-----------
TOBACCO -- 1.5%
Fortune Brands, Inc. 4,000 153,748
Philip Morris Companies, Inc. 4,000 157,500
-----------
311,248
-----------
U.S. GOVERNMENT AGENCY -- 0.9%
Federal National Mortgage
Assn. 3,000 182,250
-----------
UTILITIES -- ELECTRIC -- 4.8%
American Electric Power, Inc. 3,000 136,125
CMS Energy Corp. 3,000 132,000
Carolina Power & Light Co. 4,000 173,500
Duke Energy Corp. 3,000 177,750
Edison International 6,000 177,372
FPL Group, Inc. 3,000 189,000
-----------
985,747
-----------
UTILITIES -- TELEPHONE -- 8.9%
AT&T Corp. 4,000 228,500
Ameritech Corp. 4,500 201,936
Bell Atlantic Corp. 4,000 182,500
Bellsouth Corp. 3,000 201,374
Frontier Corporation 6,000 189,000
GTE Corp. 4,000 222,500
SBC Communications Inc. 5,000 200,000
Sprint Corp. 3,000 211,500
U.S. West Communications Inc. 4,000 188,000
-----------
1,825,310
-----------
TOTAL COMMON STOCKS
(COST $12,837,744) $19,731,814
- ------------------------------------------------------------------
PREFERRED STOCK -- 0.4%
- ------------------------------------------------------------------
Aetna Inc., 6.25%, Class C
(COST $76,372) 1,000 $ 75,125
- ------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
----------------
COMMERCIAL PAPER -- 0.8%
- ------------------------------------------------------------------
<S> <C> <C>
American Express Credit Corp.,
5.52%, due 07/30/98
(COST $174,222) $175,000 $ 174,222
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 1.4%
- ------------------------------------------------------------------
U.S. Treasury Note,
5.42%, due 07/30/98
(COST $277,429) $280,000 $ 277,429
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $13,365,767) -- 99.5% $20,258,590
OTHER ASSETS LESS LIABILITIES -- 0.5% 108,336
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $20,366,926
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1998 is $13,353,308.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 7,108,469
Aggregate gross unrealized depreciation (203,187)
-----------
Net unrealized appreciation $ 6,905,282
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
+ ADR = American Depository Receipts.
Percentages are based on net assets.
69
<PAGE> 86
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 48.5%
- ------------------------------------------------------------------
Associates Corp. of North America,
6.00%, due 06/15/00 $1,000,000 $ 1,001,610
BankBoston Corp., subordinated
note, 6.625%, due 02/01/04 1,000,000 1,017,760
Bear Stearns Co. Inc.,
7.25%, due 10/15/06 1,000,000 1,062,600
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 1,136,050
CSX Corp.,
7.25%, due 05/01/04, 144A 1,000,000 1,047,780
Chase Capital Series C,
6.36%, due 03/01/27+ 1,000,000 978,260
Chase Manhattan Corp.,
subordinated note,
6.75%, due 08/15/08 1,000,000 1,032,660
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 1,039,400
Connecticut Light & Power Co.,
7.25%, due 07/01/99 747,000 746,231
First Chicago Corp.,
9.00%, due 06/15/99 1,000,000 1,027,320
First Data Corp.,
6.75%, due 07/15/05 1,000,000 1,039,180
Ford Motor Credit Co.,
6.50%, due 02/28/02 1,000,000 1,013,570
General Electric Capital Corp.,
6.66%, due 05/01/18 1,000,000 1,014,020
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,042,580
International Bank for
Reconstruction & Development,
5.625%, due 03/17/03 1,000,000 999,200
Laidlaw Inc.,
7.70%, due 08/15/02 1,000,000 1,055,050
Lockheed Martin Corp.,
6.55%, due 05/15/99 1,000,000 1,003,030
National Rural Utilities,
6.75%, due 09/01/01 1,000,000 1,021,660
Philip Morris Companies, Inc.,
7.50%, due 04/01/04 1,000,000 1,051,610
Potash Corp. of Saskatchewan Inc.,
7.125%, due 06/15/07 1,000,000 1,040,290
Potomac Edison Co.,
8.00%, due 06/01/06 1,000,000 1,030,660
Provident Bank,
6.375%, due 01/15/04 1,000,000 1,003,960
Tyco International Group, SA,
6.375%, due 06/15/05 1,000,000 1,001,890
USA Waste Services Inc.,
7.00%, due 10/01/04 1,000,000 1,031,100
-----------
TOTAL CORPORATE BONDS AND NOTES
(COST $23,660,102) $24,437,471
- ------------------------------------------------------------------
ASSET BACKED SECURITIES -- 3.2%
- ------------------------------------------------------------------
Chemical Master Credit Card Trust
Series 1996 -2 Class A, 5.98%,
due 09/15/08 $1,000,000 $ 1,007,040
Structured Asset Securities Corp.
Series 1996-CFL Class A-1c,
5.944%, due 02/25/28 601,672 598,994
-----------
TOTAL ASSET BACKED SECURITIES
(COST $1,601,304) $ 1,606,034
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.9%
- ------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.42%, due 07/02/98 $ 350,000 $ 349,947
Federal Home Loan Mortgage Corp.,
5.42%, due 07/07/98 100,000 99,910
Federal Home Loan Mortgage Corp.,
5.43%, due 07/20/98 100,000 99,713
Federal Home Loan Mortgage Corp.,
5.44%, due 07/21/98 250,000 249,245
Federal Home Loan Mortgage Corp.,
5.40%, due 07/31/98 950,000 945,725
Federal Home Loan Mortgage Corp.,
5.42%, due 08/31/98 100,000 99,082
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.500%, due 02/15/21 2,000,000 2,031,440
Federal National Mortgage Assn.,
5.43%, due 07/16/98 125,000 124,717
Federal National Mortgage Assn.,
5.43%, due 07/17/98 150,000 149,638
Federal National Mortgage Assn.,
5.44%, due 07/29/98 100,000 99,577
Federal National Mortgage Assn.,
5.44%, due 08/05/98 200,000 198,942
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.000%, due 01/25/03 1,000,000 1,025,330
Student Loan Marketing Assn.,
5.878%, due 10/25/10 1,000,000 999,910
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $6,369,368) $ 6,473,176
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 28.6%
- ------------------------------------------------------------------
U.S. Treasury Note,
6.875%, due 07/31/99 $2,000,000 $ 2,027,500
U.S. Treasury Note,
6.375%, due 05/15/00 2,000,000 2,030,000
U.S. Treasury Note,
6.000%, due 08/15/00 1,000,000 1,009,370
U.S. Treasury Note,
6.625%, due 07/31/01 5,500,000 5,150,000
U.S. Treasury Note,
6.500%, due 05/31/02 3,000,000 3,099,360
U.S. Treasury Note,
7.500%, due 02/15/05 1,000,000 1,107,180
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $14,288,497) $14,423,410
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 5.6%
- ------------------------------------------------------------------
General Electric Co.,
5.52%, due 07/17/98 $ 350,000 $ 349,141
Household International Corp.,
5.57%, due 07/15/98 2,150,000 2,145,343
Merrill Lynch and Co., Inc.,
5.55%, due 07/30/98 175,000 174,218
Merrill Lynch and Co., Inc.,
5.54%, due 07/31/98 150,000 149,308
-----------
TOTAL COMMERCIAL PAPER
(COST $2,818,010) $ 2,818,010
- ------------------------------------------------------------------
</TABLE>
See notes to financial statements.
70
<PAGE> 87
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS
(COST $48,737,281) -- 98.8% $49,758,101
OTHER ASSETS LESS LIABILITIES -- 1.2% 610,532
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $50,368,633
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1998 is $48,767,773.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 997,167
Aggregate gross unrealized depreciation (6,839)
-----------
Net unrealized appreciation $ 990,328
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
+ Floating rate security. Rate is as of June 30, 1998.
Percentages are based on net assets.
71
<PAGE> 88
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 43.3%
- ------------------------------------------------------------------
<S> <C> <C>
Aetna Services Inc.,
7.625%, due 08/15/26 $ 1,000,000 $ 1,079,210
Boeing Co.,
8.625%, due 11/15/31 1,000,000 1,290,260
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 1,136,050
Capita Equipment Receivable Trust,
Series 1997-1, Class C,
6.48%, due 10/16/06 1,000,000 1,002,710
Chase Manhattan Corp.,
6.75%, due 08/15/08 1,000,000 1,032,660
Columbia/HCA Healthcare Corp.,
7.69%, due 06/15/25 1,000,000 963,550
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 1,039,400
Crown Cork and Seal Co., Inc.,
7.375%, due 12/15/26 1,000,000 1,081,610
Enersis S.A.,
7.40%, due 12/01/16 1,000,000 1,018,070
Federal Express Corp., Series
97-A, 7.50%, due 1/15/18 1,983,014 2,163,885
Fifth Third Cap Trust I, Series A,
8.136%, due 03/15/27 2,000,000 2,281,880
General Electric Capital Corp.,
8.30%, due 09/20/09 2,000,000 2,346,000
General Motors Corp.,
7.00%, due 06/15/03 1,000,000 1,044,120
GTE South Inc., Series D,
7.50%, due 03/15/26 1,000,000 1,060,890
Hydro-Quebec,
8.50%, due 12/01/29 1,000,000 1,243,530
James River Corp.,
7.75%, due 11/15/23 1,000,000 1,103,050
Laidlaw Inc.,
7.875%, due 04/15/05 1,000,000 1,090,800
Legrand SA,
8.50%, due 02/15/25 1,000,000 1,229,280
Lockheed Martin Corp.,
7.65%, due 05/01/16 1,000,000 1,113,330
MBIA, Inc.,
7.15%, due 07/15/27 1,000,000 1,081,670
Morgan Stanley Group Inc.,
6.875%, due 03/01/07 1,000,000 1,033,320
National City Bank,
7.25%, due 07/15/10 1,000,000 1,075,185
Norfolk Southern Corp.,
7.80%, due 05/15/27 1,000,000 1,145,170
Philip Morris Companies, Inc.,
7.25%, due 09/15/01 1,000,000 1,029,290
Seagram (J.E.) & Sons, Inc.,
9.65%, due 08/15/18 1,000,000 1,360,380
Swiss Bank Corp.,
7.75%, due 09/01/26 2,000,000 2,260,320
Texaco Capital, Inc.,
9.75%, due 03/15/20 1,000,000 1,387,810
Tyco International Group SA,
7.00%, due 06/15/28 2,000,000 2,032,700
USA Waste Services Inc.,
7.00%, due 10/01/04 1,000,000 1,031,100
-----------
TOTAL CORPORATE BONDS AND NOTES
(COST $34,719,273) $37,757,230
- ------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.5%
- ------------------------------------------------------------------
Standard Credit Card Master Trust, Series 94-2A,
Class A, 7.25%, due 04/07/06
(COST $2,114,775) $ 2,000,000 $ 2,149,680
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.4%
- ------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.42%, due 07/10/98 $ 150,000 $ 149,797
Federal Home Loan Mortgage Corp.,
6.85%, due 01/15/22 1,000,000 1,028,410
Federal National Mortgage Assn.,
5.46%, due 07/13/98 250,000 249,545
Federal National Mortgage Assn.,
REMIC, Trust 92-198,
7.50%, due 09/25/22 2,000,000 2,121,140
Student Loan Marketing Assn.,
5.83%, due 07/25/09+ 1,000,000 1,001,450
Tennessee Valley Authority,
6.00%, due 03/15/13 1,000,000 1,002,230
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $5,170,226) $ 5,552,572
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 38.1%
- ------------------------------------------------------------------
U.S. Treasury Bond,
7.875%, due 02/15/21 $ 2,500,000 $ 3,172,650
U.S. Treasury Bond,
7.625%, due 02/15/25 9,500,000 11,961,070
U.S. Treasury Bond,
6.625%, due 02/15/27 10,000,000 11,296,800
U.S. Treasury Note,
7.750%, due 12/31/99 500,000 515,625
U.S. Treasury Note,
6.250%, due 10/31/01 500,000 510,310
U.S. Treasury Note,
5.500%, due 05/31/03 1,000,000 1,000,000
U.S. Treasury Note,
7.000%, due 07/15/06 500,000 546,250
U.S. Treasury Strips,
0.000%, due 05/15/18 12,900,000 4,149,414
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $29,804,484) $33,152,119
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 8.0%
- ------------------------------------------------------------------
CIT Group Holdings Inc.,
5.53%, due 07/27/98 $ 550,000 $ 547,804
Enterprise Funding Corp.,
5.52%, due 08/19/98 1,425,000 1,420,466
Heller International,
5.67%, due 07/02/98 500,000 499,921
Merrill Lynch and Co. Inc.,
5.56%, due 07/30/98 1,675,000 1,667,498
Merrill Lynch and Co. Inc.,
5.54%, due 07/31/98 225,000 223,961
Metropolitan Life Insurance Co.,
5.54%, due 07/22/98 2,300,000 2,292,567
National Rural Utilities,
5.50%, due 08/15/98 350,000 347,058
-----------
TOTAL COMMERCIAL PAPER
(COST $6,993,103) $ 6,999,275
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $78,801,861) -- 98.3% $85,610,876
OTHER ASSETS LESS LIABILITIES -- 1.7% 1,470,710
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $87,081,586
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1998 is $78,832,353.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 6,831,663
Aggregate gross unrealized depreciation (53,140)
-----------
Net unrealized appreciation $ 6,778,523
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
+ Floating rate security. Rate is as of June 30, 1998.
Percentages are based on net assets.
72
<PAGE> 89
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 78.5%
- ------------------------------------------------------------------
AIR TRANSPORTATION -- 3.7%
AMR Corp.* 600 $ 49,950
Delta Airlines Inc. 300 38,775
UAL Corp.* 400 31,200
----------
119,925
----------
AUTOMOBILES -- 1.1%
Ford Motor Co. 600 35,400
----------
BANKS/MAJOR -- 2.7%
BankAmerica Corp. 300 25,931
Chase Manhattan Corp. 400 30,200
Citicorp 200 29,850
----------
85,981
----------
BANKS/REGIONAL -- 3.8%
BankBoston Corp. 600 33,375
First Union Corp. 500 29,125
Fleet Financial Group, Inc. 300 25,050
Mellon Bank Corp. 500 34,813
----------
122,363
----------
BEVERAGES/NON ALCOHOLIC -- 2.4%
Coca-Cola Co. 900 76,950
----------
CABLE TELEVISION -- 2.4%
Comcast Corp., Class A 1,000 40,593
Tele Communications Inc., Series
A* 1,000 38,437
----------
79,030
----------
CHEMICALS -- 1.1%
duPont (E.I.) de Nemours & Co. 500 37,313
----------
COSMETICS -- 0.7%
Gillette Co. 400 22,675
----------
DRUGS -- 7.7%
American Home Products Corp. 800 41,400
Bristol Myers Squibb Co. 400 45,975
Lilly (Eli) & Co. 200 13,212
Merck & Co., Inc. 100 13,375
Pfizer Inc. 400 43,475
Schering-Plough Corp. 300 27,488
SmithKline Beecham PLC, ADR+ 400 24,200
Warner Lambert Co. 600 41,625
----------
250,750
----------
ELECTRICAL EQUIPMENT -- 3.2%
Emerson Electric Co. 500 30,188
General Electric Co. 800 72,800
----------
102,988
----------
ELECTRONICS -- 3.3%
Applied Materials, Inc.* 300 8,850
Hewlett-Packard Co. 400 23,950
Intel Corp. 700 51,887
Texas Instruments, Inc. 400 23,325
----------
108,012
----------
ENTERTAINMENT -- 2.9%
Disney (Walt) Co. 400 42,025
Time Warner, Inc. 600 51,262
----------
93,287
----------
FINANCIAL SERVICES -- 1.7%
American Express Co. 200 22,800
Associates First Capital Corp. 131 10,071
Morgan (J.P.) Co. 200 23,425
----------
56,296
----------
HOSPITAL MANAGEMENT -- 1.7%
Aetna Inc. 300 22,838
United Healthcare Corp. 500 31,750
----------
54,588
----------
HOSPITAL SUPPLIES -- 1.1%
Johnson & Johnson 500 36,875
----------
HOUSEHOLD PRODUCTS -- 1.4%
Proctor & Gamble Co. 500 45,531
----------
INSURANCE -- 3.4%
American International Group,
Inc. 400 58,400
General Re Corp. 200 50,700
----------
109,100
----------
MACHINERY -- 1.1%
Caterpillar, Inc. 300 15,863
Deere & Co. 400 21,150
----------
37,013
----------
MEDIA -- 0.2%
Cumulus Media Inc.* 500 7,281
----------
METALS -- 0.5%
USX-Marathon Group 500 17,156
----------
OFFICE & BUSINESS EQUIPMENT -- 6.6%
Compaq Computer Corp.* 700 19,862
Dell Computer Corp.* 500 46,406
International Business Machines
Corp. 300 34,444
Microsoft Corp.* 600 65,025
Oracle Corp.* 600 14,737
Sun Microsystems, Inc.* 800 34,750
----------
215,224
----------
OIL -- DOMESTIC -- 0.5%
Atlantic Richfield Co. 200 15,625
----------
OIL -- INTERNATIONAL -- 4.0%
Amoco Corp. 200 8,325
British Petroleum, PLC, ADR+ 200 17,650
Chevron Corp. 300 24,919
Exxon Corp. 300 21,394
Mobil Corp. 300 22,987
Royal Dutch Petroleum Co. 400 21,925
Texaco, Inc. 200 11,937
----------
129,137
----------
OIL -- SERVICES -- 4.3%
Baker Hughes, Inc. 300 10,369
B.J. Services* 400 11,625
Diamond Offshore Drilling Inc. 400 16,000
Ensco International Inc. 400 6,950
EVI Weatherford, Inc.* 400 14,850
Halliburton Co. 400 17,825
Marine Drilling Co. Inc.* 800 12,800
Noble Drilling Corp.* 500 12,031
R&B Falcon Corp.* 700 15,837
Schlumberger Ltd. 300 20,493
----------
138,780
----------
</TABLE>
See notes to financial statements.
73
<PAGE> 90
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
RESTAURANT -- 0.4%
McDonald's Corp. 200 $ 13,800
----------
RETAIL -- 3.3%
Gap (The) Inc. 750 46,219
Home Depot Inc. 500 41,531
Wal-Mart Stores* 300 18,225
----------
105,975
----------
TELECOMMUNICATIONS -- 11.0%
ADC Telecommunications* 300 10,959
Cisco Systems, Inc.* 600 55,237
Ericsson, L.M 1,000 28,625
General Instrument* 300 8,156
L-3 Communications Holdings Inc.* 500 16,344
Lucent Technologies Inc. 500 41,594
Nokia Corp. 400 29,025
Qwest Communications Int'l.,
Inc.* 1,000 34,875
Scientific-Atlanta* 300 7,613
Sprint Corp. 400 28,200
Tellabs Inc.* 100 7,162
Teleport Communications Group,
Inc. Class A* 600 32,550
Worldcom, Inc.* 1,200 58,121
----------
358,461
----------
TOBACCO -- 0.5%
Phillip Morris Cos., Inc. 400 15,750
----------
U.S. GOVERNMENT AGENCIES -- 1.8%
Federal Home Loan Mortgage Corp. 600 28,237
Federal National Mortgage Assn 500 30,375
----------
58,612
----------
TOTAL COMMON STOCKS
(COST $1,566,443) $2,549,878
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATION -- 3.1%
- ------------------------------------------------------------------
Federal National Mortgage Assn.,
5.44%, due 07/22/98
(COST $99,682) $100,000 $ 99,682
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 16.4%
- ------------------------------------------------------------------
U.S. Treasury Note, 7.50%, due
05/15/02 (COST $513,277) $500,000 $ 533,590
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,179,402) -- 98.0% $3,183,150
OTHER ASSETS LESS LIABILITIES -- 2.0% 64,572
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $3,247,722
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes at June 30,
1998 is $2,179,402.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $1,021,378
Aggregate gross unrealized depreciation (17,630)
----------
Net unrealized appreciation $1,003,748
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
+ ADR = American Depository Receipts.
Percentages are based on net assets.
74
<PAGE> 91
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 22.5%
- ------------------------------------------------------------------
U.S. Treasury Note, 6.00%, due
08/15/99 $1,000,000 $ 1,004,680
U.S. Treasury Note, 5.875%, due
11/15/99 1,000,000 1,004,370
U.S. Treasury Note 7.75%, due
11/30/99 1,000,000 1,029,680
U.S. Treasury Note, 5.625%, due
12/31/02 1,000,000 1,004,060
U.S. Treasury Note, 5.50%, due
01/31/03 3,000,000 2,997,180
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $5,982,612) $ 7,039,970
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 75.9%
- ------------------------------------------------------------------
Attransco, Inc., 6.120%, due
04/01/08 $2,000,000 $ 2,013,012
Federal Home Loan Bank, 5.50%, due
01/21/03 2,000,000 1,985,600
Federal Home Loan Mortgage Corp.,
5.42%, due 07/06/98 350,000 349,737
Federal Home Loan Mortgage Corp.,
5.39%, due 07/07/98 200,000 199,820
Federal Home Loan Mortgage Corp.,
5.42%, due 07/10/98 100,000 99,865
Federal Home Loan Mortgage Corp.,
5.40%, due 07/14/98 1,325,000 1,322,415
Federal Home Loan Mortgage Corp.,
5.43%, due 07/20/98 250,000 249,283
Federal Home Loan Mortgage Corp.,
5.44%, due 07/21/98 200,000 199,395
Federal Home Loan Mortgage Corp.,
5.44%, due 07/31/98 150,000 149,320
Federal Home Loan Mortgage Corp.,
5.42%, due 08/31/98 275,000 272,475
Federal Home Loan Mortgage Corp.,
6.50%, due 11/15/21 1,500,000 1,519,680
Federal National Mortgage Assn.,
5.41%, due 07/13/98 2,750,000 2,745,041
Federal National Mortgage Assn.,
5.43%, due 07/17/98 850,000 847,949
Federal National Mortgage Assn.,
5.44%, due 07/22/98 325,000 323,969
Federal National Mortgage Assn.,
5.44%, due 07/29/98 650,000 647,250
Federal National Mortgage Assn.
REMIC Trust, 7.00%, due 01/25/03 285,000 292,219
Federal National Mortgage Assn.
REMIC Trust, 5.75%, due 08/25/18 500,000 497,595
Federal National Mortgage Assn.
REMIC Trust, 6.50%, due 10/25/23 1,300,000 1,316,460
Government National Mortgage
Assn., 7.50%, due 05/15/24 854,330 877,560
Government National Mortgage
Assn., 7.50%, due 10/15/24 223,734 229,818
Private Export Funding Corp.,
7.01%, due 04/30/04 2,000,000 2,125,160
Tennessee Valley Authority Series
A, 6.375%, due 06/15/05 500,000 519,100
Tennessee Valley Authority Series
A, 6.00%, due 03/15/13 1,000,000 1,002,230
U.S. Government -- HUD, 6.23%, due
08/01/02 2,000,000 2,039,760
U.S. Government -- RFCO, 0.00%,
due 10/15/98 2,000,000 1,969,740
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $24,471,400) $23,794,453
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $30,454,012) -- 98.4% $30,834,423
OTHER ASSETS LESS LIABILITIES -- 1.6% 492,540
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $31,326,963
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes on June 30,
1998 is $30,454,012.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 394,046
Aggregate gross unrealized depreciation (13,635)
-----------
Net unrealized appreciation $ 380,411
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
75
<PAGE> 92
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 83.9%
- ------------------------------------------------------------------
Abbott Laboratories, 5.54%, due
07/28/98 $2,700,000 $ 2,688,782
American Express Credit Corp.,
5.52%, due 07/22/98 6,900,000 6,877,782
American Express Credit Corp.,
5.51%, due 08/17/98 400,000 397,123
American Crystal Sugar Co.,
5.78%, due 07/22/98 1,500,000 1,494,943
Associates Corp. of North
America, 5.52%, due 07/21/98 6,000,000 5,981,600
Avco Financial Services Canada
Ltd., 5.55%, due 10/15/98 4,000,000 3,934,634
Avco Financial Services Canada
Ltd., 5.55%, due 10/16/98 3,000,000 2,950,513
Avco Financial Services Canada
Ltd., 5.55%, due 10/19/98 1,000,000 983,042
Bank of New York, 5.51%, due
07/14/98 3,800,000 3,792,439
Bank of New York, 5.51%, due
07/16/98 3,000,000 2,993,113
Bell Atlantic Network Funding,
5.52%, due 07/17/98 3,000,000 2,992,640
Capital One Bank, N.A., 5.63%,
due 07/02/98 (a) 3,900,000 3,903,609
Capital One Funding Corp., 5.63%,
due 07/02/98 (a) 3,223,000 3,225,983
Chevron Oil Finance Co., 5.54%,
due 07/16/98 7,000,000 6,983,842
C.I.T. Group Holdings, Inc.,
5.53%, due 07/27/98 3,000,000 2,988,018
Commercial Credit Corp., 5.49%,
due 07/08/98 1,000,000 998,933
Commercial Credit Corp., 5.52%,
due 08/20/98 2,950,000 2,927,384
Dominion Resources Inc., 5.65%,
due 07/14/98 1,400,000 1,397,144
Enterprise Funding Corp., 5.52%,
due 07/10/98 1,800,000 1,797,516
General Electric Capital Corp.,
5.51%, due 07/14/98 1,400,000 1,397,214
General Electric Capital Corp.,
5.53%, due 07/29/98 500,000 497,850
General Electric Capital Corp.,
5.53%, due 08/27/98 6,000,000 5,947,465
General Motors Acceptance Corp.,
5.52%, due 07/10/98 750,000 748,965
General Motors Acceptance Corp.,
5.52%, due 08/28/98 1,250,000 1,238,884
General Motors Acceptance Corp.,
5.55%, due 09/01/98 3,000,000 2,971,325
Goldman Sachs Group, L.P., 5.66%,
due 07/15/98 5,000,000 5,060,490
Heller Financial, Inc., 5.67%,
due 07/02/98 450,000 449,929
Heller Financial, Inc., 5.68%,
due 07/23/98 4,350,000 4,334,901
Household International Inc.,
5.57%, due 07/15/98 3,200,000 3,193,068
Houston Industries Inc., 5.72%,
due 07/06/98 1,250,000 1,249,007
Lehman Brothers Holdings Inc.,
5.53%, due 07/16/98 4,000,000 3,990,783
Lehman Brothers Holdings Inc.,
6.10%, due 07/17/98 1,600,000 1,595,662
Merrill Lynch and Co., Inc.,
5.53%, due 07/24/98 2,800,000 2,790,107
Merrill Lynch and Co., Inc.,
5.56%, due 07/30/98 3,550,000 3,534,100
Merrill Lynch and Co., Inc.,
5.54%, due 07/31/98 1,800,000 1,791,690
Metropolitan Life Funding Inc.,
5.53%, due 07/23/98 4,000,000 3,986,482
National Rural Utilities, 5.50%,
due 08/25/98 5,650,000 5,602,525
Norwest Corp., 5.50%, due
07/13/98 350,000 349,358
Paccar Financial Group, 5.55%,
due 07/06/98 1,100,000 1,099,152
Prudential Funding Corp., 5.52%,
due 07/23/98 1,850,000 1,843,759
Prudential Funding Corp., 5.54%,
due 07/24/98 4,500,000 4,484,073
Sanwa Business Credit Corp.,
6.00%, due 07/23/98 2,225,000 2,216,842
Sears Roebuck Acceptance Corp.,
5.51%, due 07/13/98 2,000,000 1,996,327
Sears Roebuck Acceptance Corp.,
5.53%, due 07/22/98 800,000 797,420
Sears Roebuck Acceptance Corp.,
5.51%, due 08/07/98 2,200,000 2,187,541
Texaco Inc., 5.51%, due 07/27/98 5,900,000 5,876,521
TransAmerica Corp., 5.51%, due
07/10/98 1,750,000 1,747,589
TransAmerica Corp., 5.50%, due
07/15/98 3,000,000 2,993,583
TransAmerica Corp., 5.52%, due
08/21/98 2,500,000 2,480,450
------------
TOTAL COMMERCIAL PAPER
(COST $137,762,102) $137,762,102
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.5%
- ------------------------------------------------------------------
Federal Home Loan Bank, 5.69%,
due 10/02/98 $2,000,000 $ 2,055,320
Federal Home Loan Mortgage Corp.,
5.43%, due 07/20/98 150,000 149,570
Federal National Mortgage Assn.,
5.46%, due 07/13/98 300,000 299,454
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $2,504,344) $ 2,504,344
- ------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 4.9%
- ------------------------------------------------------------------
Asset-Backed Sec. Inv. Trust,
5.65%, due 07/15/98 (COST
$8,020,098) $8,000,000 $ 8,020,098
- ------------------------------------------------------------------
</TABLE>
See notes to financial statements.
76
<PAGE> 93
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
CERTIFICATE OF DEPOSITS -- 10.8%
- ------------------------------------------------------------------
Canadian Imperial Bank, 5.70%,
due 06/14/99 $7,000,000 $ 7,017,269
Toronto Dominion Bank, 5.70%, due
06/17/99 7,000,000 7,015,304
National Westminster Bank PLC,
5.86%, due 08/10/98 3,575,000 3,745,506
------------
TOTAL CERTIFICATE OF DEPOSITS
(COST $17,778,079) $ 17,778,079
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $166,064,623) -- 101.1% $166,064,623
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.1%)
(1,896,576)
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $164,168,047
==================================================================
</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 non-financial commercial paper rate plus ten basis points.
This instrument resets on a weekly basis. The rate shown was in effect as of
June 30, 1998.
Percentages are based on net assets.
77
<PAGE> 94
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES June 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT
EQUITY GROWTH EQUITY INCOME TERM BOND BOND DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ --------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Securities, at
value*.............. $2,968,374 $20,258,590 $49,758,101 $85,610,876 $3,183,150 $30,834,423 $166,064,623
Cash.................. 21,935 95,475 799,832 9,944 75,659 73,397 62,978
Dividends
receivable.......... 1,724 36,102 0 0 1,644 0 0
Interest receivable... 0 0 730,091 1,383,465 4,793 335,367 12,683
Receivable for fund
shares sold......... 195 76 18,632 190,652 327 112,783 1,869,897
Receivable for
securities sold..... 57 18 253,000 1,109,412 58 0 0
Prepaid expense....... 58 392 641 961 59 94 1,515
---------- ----------- ----------- ----------- ---------- ----------- ------------
Total assets.............. 2,992,343 20,390,653 51,560,297 88,305,310 3,265,690 31,356,064 168,011,696
---------- ----------- ----------- ----------- ---------- ----------- ------------
LIABILITIES
Payable for fund
shares redeemed..... 349 628 42,123 76,203 346 3,338 3,745,157
Payable for securities
sold................ 7,000 0 1,110,045 1,088,599 7,000 0 0
Accrued expenses:
Investment
advisory
fees........... 1,271 8,953 21,860 37,556 1,388 13,289 55,618
Custodian fees... 2,886 4,225 3,573 2,564 2,285 2,001 7,769
Accounting
fees........... 2,240 2,556 2,952 3,435 2,259 2,594 5,013
Professional
fees........... 4,250 5,001 5,895 6,967 4,281 4,999 9,294
Miscellaneous
fees........... 287 2,364 5,216 8,400 409 2,880 20,798
---------- ----------- ----------- ----------- ---------- ----------- ------------
Total liabilities......... 18,283 23,727 1,191,664 1,223,724 17,968 29,101 3,843,649
---------- ----------- ----------- ----------- ---------- ----------- ------------
NET ASSETS................ $2,974,060 $20,366,926 $50,368,633 $87,081,586 $3,247,722 $31,326,963 $164,168,047
========== =========== =========== =========== ========== =========== ============
Net assets consist of:
Capital stock -- $.01
par value........... $ 854 $ 8,093 $ 46,140 $ 64,122 $ 1,773 $ 29,120 $ 1,641,680
Additional paid-in
capital............. 1,783,911 10,951,338 48,171,636 77,262,483 1,968,169 30,181,322 162,526,367
Undistributed net
investment income
(loss).............. (3,155) 188,648 1,355,644 2,320,053 6,386 736,571 0
Undistributed/accumulated
net realized gain
(loss) on
investments......... 169,252 2,326,024 (225,607) 625,913 267,646 (461) 0
Net unrealized
appreciation of
investments......... 1,023,198 6,892,823 1,020,820 6,809,015 1,003,748 380,411 0
---------- ----------- ----------- ----------- ---------- ----------- ------------
NET ASSETS................ $2,974,060 $20,366,926 $50,368,633 $87,081,586 $3,247,722 $31,326,963 $164,168,047
========== =========== =========== =========== ========== =========== ============
Shares of capital stock
outstanding............. 85,430 809,323 4,613,984 6,412,245 177,270 2,912,021 164,168,047
---------- ----------- ----------- ----------- ---------- ----------- ------------
Net asset value per share
of outstanding capital
stock................... $ 34.81 $ 25.17 $ 10.92 $ 13.58 $ 18.32 $ 10.76 $ 1.00
========== =========== =========== =========== ========== =========== ============
*Investments at cost...... $1,945,176 $13,365,767 $48,737,281 $78,801,861 $2,179,402 $30,454,012 $166,064,623
</TABLE>
See notes to financial statements.
78
<PAGE> 95
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the six months ended June 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT
EQUITY GROWTH EQUITY INCOME TERM BOND BOND DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ --------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest............... $ 4,460 $ 13,296 $1,503,302 $2,557,481 $ 20,685 $828,509 $4,120,340
Dividends.............. 15,428 248,812 0 0 13,783 0 0
-------- ---------- ---------- ---------- -------- -------- ----------
Total investment
income.......... 19,888 262,108 1,503,302 2,557,481 34,468 828,509 4,120,340
-------- ---------- ---------- ---------- -------- -------- ----------
EXPENSES:
Investment advisory
fees................. 7,196 52,271 118,328 200,736 7,883 68,909 291,615
Custodian fees......... 3,731 4,593 3,641 2,655 3,732 2,494 7,946
Accounting fees........ 12,669 14,487 16,731 19,381 12,747 14,569 28,432
Professional fees...... 4,075 4,800 5,662 6,699 4,104 4,801 10,116
Directors fees......... 208 1,550 3,132 5,088 254 1,659 11,753
Miscellaneous fees..... 243 1,826 2,341 3,816 276 1,248 8,744
-------- ---------- ---------- ---------- -------- -------- ----------
Total expenses.... 28,122 79,527 149,835 238,375 28,996 93,680 358,606
Expenses reduced
by a custodian
fee
arrangement..... (988) (714) (2,177) (947) (915) (1,742) (4,878)
-------- ---------- ---------- ---------- -------- -------- ----------
Net expenses...... 27,134 78,813 147,658 237,428 28,081 91,938 353,728
-------- ---------- ---------- ---------- -------- -------- ----------
Net investment income
(loss).................... (7,246) 183,295 1,355,644 2,320,053 6,387 736,571 3,766,612
-------- ---------- ---------- ---------- -------- -------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
(NOTE 2):
Realized gain from
security transactions
(excluding short-term
securities):
Proceeds from
sales........... 643,478 5,552,266 1,542,908 10,872,406 800,068 126,022 0
Less: Cost of
securities
sold............ 469,098 3,233,347 1,525,700 10,216,002 532,398 124,741 0
-------- ---------- ---------- ---------- -------- -------- ----------
Net realized gain on
investments............... 174,380 2,318,919 17,208 656,404 267,670 1,281 0
Net increase (decrease) in
unrealized appreciation of
investments............... 221,151 (616,206) 246,385 1,376,536 136,219 62,251 0
-------- ---------- ---------- ---------- -------- -------- ----------
Net realized and unrealized
gain on investments....... 395,531 1,702,713 263,593 2,032,940 403,889 63,532 0
-------- ---------- ---------- ---------- -------- -------- ----------
Net increase in net assets
resulting from
operations................ $388,285 $1,886,008 $1,619,237 $4,352,993 $410,276 $800,103 $3,766,612
======== ========== ========== ========== ======== ======== ==========
</TABLE>
See notes to financial statements.
79
<PAGE> 96
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss)... $ (7,246) $ 8,852 $ 183,295 $ 444,144
Net realized gain (loss) on
investments (Note 2)......... 174,380 457,619 2,318,919 2,832,463
Net increase (decrease) in
unrealized appreciation of
investments.................. 221,151 208,784 (616,206) 2,149,816
---------- ---------- ----------- -----------
Net increase in net assets
resulting from operations........ 388,285 675,255 1,886,008 5,426,423
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)........................... (119,498) (68,260) (632,565) (774,467)
Net realized gain from
investment transactions (Note
4)........................... (342,882) (133,214) (2,642,564) (1,471,218)
---------- ---------- ----------- -----------
Total dividends and
distributions to
shareholders............. (462,380) (201,474) (3,275,129) (2,245,685)
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares....................... 62,257 184,444 469,645 321,172
Proceeds from dividends and
distributions reinvested..... 462,380 201,474 3,275,129 2,245,685
Net asset value of shares
redeemed..................... (275,588) (215,262) (2,709,613) (3,599,056)
---------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from share
transactions..................... 249,049 170,656 1,035,161 (1,032,199)
---------- ---------- ----------- -----------
Net increase in net assets......... 174,954 644,437 (353,960) 2,148,539
Net assets beginning of period..... 2,799,106 2,154,669 20,720,886 18,572,347
---------- ---------- ----------- -----------
Net assets end of period*.......... $2,974,060 $2,799,106 $20,366,926 $20,720,886
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued......................... 1,779 12,546 16,166 12,780
Issued in reinvestment of
dividends and
distributions................ 13,656 0 126,845 104,450
Redeemed....................... (7,581) (16,217) (98,191) (144,920)
---------- ---------- ----------- -----------
Net increase (decrease).... 7,854 (3,671) 44,820 (27,690)
========== ========== =========== ===========
*Including
undistributed/accumulated net
investment income (loss) of: $ (3,155) $ 8,852 $ 188,648 $ 444,144
<CAPTION>
INTERMEDIATE TERM
BOND PORTFOLIO LONG TERM BOND PORTFOLIO
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss)... $ 1,355,644 $ 2,478,951 $ 2,320,053 $ 4,173,497
Net realized gain (loss) on
investments (Note 2)......... 17,208 (142,541) 656,404 545,629
Net increase (decrease) in
unrealized appreciation of
investments.................. 246,385 806,052 1,376,536 3,873,480
----------- ------------ ------------ ------------
Net increase in net assets
resulting from operations........ 1,619,237 3,142,462 4,352,993 8,592,606
----------- ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)........................... (2,478,951) (2,284,209) (4,173,497) (3,837,045)
Net realized gain from
investment transactions (Note
4)........................... 0 0 (314,904) 0
----------- ------------ ------------ ------------
Total dividends and
distributions to
shareholders............. (2,478,951) (2,284,209) (4,488,401) (3,837,045)
----------- ------------ ------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares....................... 8,350,667 11,465,629 17,665,995 19,278,888
Proceeds from dividends and
distributions reinvested..... 2,478,951 2,284,209 4,488,401 3,837,045
Net asset value of shares
redeemed..................... (3,818,265) (10,436,350) (10,290,166) (14,617,547)
----------- ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from share
transactions..................... 7,011,353 3,313,488 11,864,230 8,498,386
----------- ------------ ------------ ------------
Net increase in net assets......... 6,151,639 4,171,741 11,728,822 13,253,947
Net assets beginning of period..... 44,216,994 40,045,253 75,352,764 62,098,817
----------- ------------ ------------ ------------
Net assets end of period*.......... $50,368,633 $ 44,216,994 $ 87,081,586 $ 75,352,764
=========== ============ ============ ============
SHARES ISSUED AND REDEEMED:
Issued......................... 755,471 1,065,196 1,304,613 1,516,701
Issued in reinvestment of
dividends and
distributions................ 231,461 221,552 344,731 327,953
Redeemed....................... (347,852) (967,252) (759,947) (1,158,388)
----------- ------------ ------------ ------------
Net increase (decrease).... 639,080 319,496 889,397 686,266
=========== ============ ============ ============
*Including
undistributed/accumulated net
investment income (loss) of: $ 1,355,644 $ 2,478,951 $ 2,320,053 $ 4,173,497
</TABLE>
See notes to financial statements.
80
<PAGE> 97
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO MONEY MARKET PORTFOLIO
--------------------------- --------------------------- -----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income............. $ 6,387 $ 49,159 $ 736,571 $ 1,106,347 $ 3,766,612 $ 7,935,910
Net realized gain on investments
(Note 2)........................ 267,670 659,723 1,281 7,774 0 0
Net increase in unrealized
appreciation of investments..... 136,219 56,061 62,251 301,555 0 0
---------- ----------- ----------- ----------- ------------- -------------
Net increase in net assets resulting
from operations..................... 410,276 764,943 800,103 1,415,676 3,766,612 7,935,910
---------- ----------- ----------- ----------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note 4).... (233,109) (67,363) (1,106,347) (695,233) (3,766,612) (7,935,910)
Net realized gain from investment
transactions (Note 4)........... (468,435) (196,377) 0 0 0 0
---------- ----------- ----------- ----------- ------------- -------------
Total dividends and
distributions to
shareholders............... (701,544) (263,740) (1,106,347) (695,233) (3,766,612) (7,935,910)
---------- ----------- ----------- ----------- ------------- -------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares.......................... 84,831 188,701 8,795,070 11,987,035 372,470,879 919,623,131
Proceeds from dividends and
distributions reinvested........ 701,544 263,740 1,106,347 695,233 3,766,612 7,935,910
Net asset value of shares
redeemed........................ (476,774) (1,104,842) (3,334,103) (4,720,118) (370,355,681) (914,204,963)
---------- ----------- ----------- ----------- ------------- -------------
Net increase (decrease) in net assets
resulting from share transactions... 309,601 (652,401) 6,567,314 7,962,150 5,881,810 13,354,078
---------- ----------- ----------- ----------- ------------- -------------
Net increase (decrease) in net
assets.............................. 18,333 (151,198) 6,261,070 8,682,593 5,881,810 13,354,078
Net assets beginning of period........ 3,229,389 3,380,587 25,065,893 16,383,300 158,286,237 144,932,159
---------- ----------- ----------- ----------- ------------- -------------
Net assets end of period*............. $3,247,722 $ 3,229,389 $31,326,963 $25,065,893 $ 164,168,047 $ 158,286,237
========== =========== =========== =========== ============= =============
SHARES ISSUED AND REDEEMED:
Issued............................ 4,414 9,906 813,158 1,129,743 372,470,879 919,623,131
Issued in reinvestment of
dividends and distributions..... 39,703 15,793 104,570 68,160 3,766,612 7,935,910
Redeemed.......................... (23,538) (56,930) (308,176) (444,602) (370,355,681) (914,204,963)
---------- ----------- ----------- ----------- ------------- -------------
Net increase (decrease)...... 20,579 (31,231) 609,552 753,301 5,881,810 13,354,078
========== =========== =========== =========== ============= =============
*Including undistributed net
investment income of: $ 6,386 $ 49,159 $ 736,571 $ 1,106,347 $ 0 $ 0
</TABLE>
See notes to financial statements.
81
<PAGE> 98
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. As of June 30, 1998 there were no such securities.
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 exdividend 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.
82
<PAGE> 99
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 organizing the Fund, the initial registration
of its securities, and the compensation of the directors, officers and employees
of the Fund who are affiliated with the Investment Adviser.
For these services, the Investment Adviser receives an investment advisory
fee and an accounting fee. The investment advisory fee is a daily charge equal
to an annual rate of .50% of the first $400,000,000 of the average daily net
assets of each of the Fund's Portfolios except the Money Market Portfolio, which
is .40% of the first $400,000,000 of the average daily net assets, .35% of the
next $400,000,000 of the average daily net assets of each of the Fund's
Portfolios; and .30% of the average daily net assets of each of the Fund's
Portfolios in excess of $800,000,000. Prior to October 14, 1997, the investment
advisory fee for the first $400,000,000 was .40% of the aggregate average daily
net assets for all of the Fund's Portfolios. For the six months ended June 30,
1998 the fees incurred by the Fund were $746,938. On October 15, 1997, the
Investment Adviser began assessing the Fund an accounting fee. This fee is based
on an allocation of expenses borne by the Investment Adviser for personnel,
facilities and services necessary to calculate the Portfolios' daily net asset
values. The fee is allocated to the Portfolios at $25,000 per portfolio, per
annum, with the excess of the Investment Adviser's expenses allocated to each
Portfolio daily based on each Portfolio's net assets in relation to the total
net assets of the Fund.
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. MONY also provides transfer agent services to the Fund. The
Investment Adviser pays MONY for these services.
Aggregate remuneration incurred to nonaffiliated Directors of the Fund for
the six months ended June 30, 1998, amounted to $23,644.
4. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded on the exdividend
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.
83
<PAGE> 100
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (CONTINUED)
During the year ended December 31, 1997, the Equity Income Portfolio
increased undistributed realized gains by $5,354 and decrease undistributed net
investment income by $5,354. Those differences are primarily due to return of
capital distribution received on investments.
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 to fund benefits under Flexible Premium Variable Life
Insurance Contracts, Variable Universal Life Insurance Contracts and Corporate
Sponsored Variable Universal Life Insurance Contracts; to MONY Variable Account
L to fund benefits under Flexible Premium Variable Life Insurance Contracts and
Variable Universal Life Insurance Contracts; to MONY America Variable Account S
and MONY Variable Account S to fund benefits under Variable Life Insurance with
Additional Premium Option Contracts; and to MONY America Variable Account A and
MONY Variable Account A, to fund benefits under Flexible Payment Variable
Annuity Contracts issued by those companies. Shares of the Fund are also sold to
MONY for allocation to the Keynote Series Account ("Keynote") to fund benefits
under Individual Annuity Plans issued by MONY.
6. FEDERAL INCOME TAX-CAPITAL LOSS CARRYFORWARD
At June 30, 1998, 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>
Intermediate Term Bond...................................... $ 16,860 December 31, 2003
66,206 December 31, 2004
112,050 December 31, 2005
--------
$195,116
========
Government Securities....................................... $ 808 December 31, 2004
========
</TABLE>
84
<PAGE> 101
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. PURCHASES AND SALES OF INVESTMENTS
The aggregate cost of investments purchased and proceeds from sales or
maturities, other than short-term investments, for the six months ended June 30,
1998 (unaudited) were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C> <C>
Equity Growth Portfolio.................. Common Stock $ 448,527 $ 686,383
Equity Income Portfolio.................. Common Stock 3,075,566 5,552,213
Intermediate Term Bond Portfolio......... U.S. Government Obligations 7,218,613 1,028,438
Corporate Bonds 1,992,560 1,514,471
Long Term Bond Portfolio................. U.S. Government Obligations 11,293,720 6,483,770
Corporate Bonds 5,177,614 4,388,636
Diversified Portfolio.................... Common Stock 441,863 846,988
Government Securities Portfolio.......... U.S. Government Obligations 8,976,543 3,187,870
</TABLE>
85
<PAGE> 102
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
------------ ---------- ---------- ---------- ---------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 36.08 $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25
---------- ---------- ---------- ---------- ---------- ----------- -----------
Income from investment operations
Net investment income........... 1.47 0.11 0.96 0.39 0.36 0.33 0.29
Net gains (losses) on
investments (both realized and
unrealized)................... 3.52 8.42 4.30 5.90 0.09 1.59 (0.46)
---------- ---------- ---------- ---------- ---------- ----------- -----------
Total from investment
operations.................. 4.99 8.53 5.26 6.29 0.45 1.92 (0.17)
---------- ---------- ---------- ---------- ---------- ----------- -----------
Less distributions
Dividends (from net investment
income)....................... (1.62) (0.96) 0.00 (0.39) (0.36) (0.33) (0.29)
Distributions (from realized
capital gains)................ (4.64) (1.86) 0.00 (1.34) (0.20) (0.57) (0.04)
Distributions (from additional
paid-in capital).............. 0.00 0.00 0.00 0.00 0.00 0.00 (0.03)
Distributions (in excess of
realized capital gain)........ 0.00 0.00 0.00 (0.04) 0.00 0.00 (0.04)
---------- ---------- ---------- ---------- ---------- ----------- -----------
Total distributions........... (6.26) (2.82) 0.00 (1.77) (0.56) (0.90) (0.40)
---------- ---------- ---------- ---------- ---------- ----------- -----------
Net asset value, end of period.... $ 34.81 $ 36.08 $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68
========== ========== ========== ========== ========== =========== ===========
Total return.................. 14.32% 30.68% 20.95% 30.54% 2.15% 9.71% (0.84%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $2,974,060 $2,799,106 $2,154,669 $1,873,569 $1,556,536 $58,963,456 $39,979,012
Average commission rate........... $ 0.0456 $ 0.0418 $ 0.0330 N/A N/A N/A N/A
Ratio of net investment income to
average net assets.............. (0.50%)+ 0.34% 0.62% 1.54% 2.11% 1.79% 1.72%
Ratio of expenses to average net
assets.......................... 1.95%+ 1.33% 1.22% 1.28% 0.53% 0.50% 0.53%
Portfolio turnover rate........... 16.78% 45.90% 44.17% 38.17% 55.09% 59.15% 39.93%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------
1991 1990 1989
----------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 15.38 $ 15.90 $ 12.78
----------- ---------- ----------
Income from investment operations
Net investment income........... 0.25 0.27 0.28
Net gains (losses) on
investments (both realized and
unrealized)................... 5.08 (0.50) 3.66
----------- ---------- ----------
Total from investment
operations.................. 5.33 (0.23) 3.94
----------- ---------- ----------
Less distributions
Dividends (from net investment
income)....................... (0.25) (0.29) (0.27)
Distributions (from realized
capital gains)................ (0.17) 0.00 (0.55)
Distributions (from additional
paid-in capital).............. (0.04) 0.00 0.00
Distributions (in excess of
realized capital gain)........ 0.00 0.00 0.00
----------- ---------- ----------
Total distributions........... (0.46) (0.29) (0.82)
----------- ---------- ----------
Net asset value, end of period.... $ 20.25 $ 15.38 $ 15.90
=========== ========== ==========
Total return.................. 34.66% (1.45%) 30.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $26,219,999 $7,163,679 $5,672,894
Average commission rate........... N/A N/A N/A
Ratio of net investment income to
average net assets.............. 2.09% 2.42% 2.00%
Ratio of expenses to average net
assets.......................... 0.59% 0.77% 0.96%
Portfolio turnover rate........... 32.33% 31.21% 29.91%
</TABLE>
- ---------------
+ Annualized
86
<PAGE> 103
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------ ----------- ----------- ----------- ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 27.10 $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56
----------- ----------- ----------- ----------- ----------- ------------
Income from investment operations
Net investment income............... 0.53 0.61 0.98 0.69 0.64 0.52
Net gains (losses) on investments
(both realized and unrealized).... 2.09 5.96 2.89 4.45 (0.51) 1.68
----------- ----------- ----------- ----------- ----------- ------------
Total from investment
operations...................... 2.62 6.57 3.87 5.14 0.13 2.20
----------- ----------- ----------- ----------- ----------- ------------
Less distributions
Dividends (from net investment
income)........................... (0.88) (1.00) (0.04) (0.65) (0.64) (0.52)
Distributions (from realized capital
gains)............................ (3.67) (1.91) 0.00 (0.41) (0.39) (0.81)
----------- ----------- ----------- ----------- ----------- ------------
Total distributions............... (4.55) (2.91) (0.04) (1.06) (1.03) (1.33)
----------- ----------- ----------- ----------- ----------- ------------
Net asset value, end of period........ $ 25.17 $ 27.10 $ 23.44 $ 19.61 $ 15.53 $ 16.43
=========== =========== =========== =========== =========== ============
Total return...................... 13.19% 31.26% 19.76% 33.12% 0.78% 14.14%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $20,366,926 $20,720,886 $18,572,347 $18,091,035 $16,204,925 $151,330,311
Average commission rate............... $ 0.0586 $ 0.0491 $ 0.0593 N/A N/A N/A
Ratio of net investment income to
average net assets.................. 1.76%+ 2.20% 2.79% 3.54% 3.53% 3.22%
Ratio of expenses to average net
assets.............................. 0.77%+ 0.59% 0.55% 0.56% 0.48% 0.46%
Portfolio turnover rate............... 15.08% 29.32% 29.37% 26.80% 32.48% 28.48%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1992 1991 1990 1989
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 14.64 $ 12.70 $ 14.26 $ 12.67
------------ ------------ ----------- ----------
Income from investment operations
Net investment income............... 0.59 0.64 0.54 0.64
Net gains (losses) on investments
(both realized and unrealized).... 0.92 1.94 (1.50) 2.20
------------ ------------ ----------- ----------
Total from investment
operations...................... 1.51 2.58 (0.96) 2.84
------------ ------------ ----------- ----------
Less distributions
Dividends (from net investment
income)........................... (0.59) (0.64) (0.60) (0.64)
Distributions (from realized capital
gains)............................ 0.00* 0.00* 0.00 (0.61)
------------ ------------ ----------- ----------
Total distributions............... (0.59) (0.64) (0.60) (1.25)
------------ ------------ ----------- ----------
Net asset value, end of period........ $ 15.56 $ 14.64 $ 12.70 $ 14.26
============ ============ =========== ==========
Total return...................... 10.31% 20.31% (6.73%) 22.42%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $121,540,392 $118,114,947 $99,878,151 $6,185,876
Average commission rate............... N/A N/A N/A N/A
Ratio of net investment income to
average net assets.................. 3.68% 4.46% 5.39% 4.66%
Ratio of expenses to average net
assets.............................. 0.46% 0.49% 0.52% 0.88%
Portfolio turnover rate............... 35.62% 25.84% 8.89% 19.55%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
87
<PAGE> 104
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 11.12 $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.25 0.63 0.62 0.63 0.60 0.47
Net gains (losses) on investments
(both realized and unrealized)..... 0.13 0.16 (0.23) 0.82 (0.76) 0.34
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... 0.38 0.79 0.39 1.45 (0.16) 0.81
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.58) (0.63) 0.00 (0.63) (0.60) (0.47)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 0.00 0.00 (0.16)
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................ (0.58) (0.63) 0.00 (0.63) (0.60) (0.63)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period......... $ 10.92 $ 11.12 $ 10.96 $ 10.57 $ 9.75 $ 10.51
=========== =========== =========== =========== =========== ===========
Total return....................... 3.55% 7.70% 3.69% 14.82% (1.52%) 7.84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.............. $50,368,633 $44,216,994 $40,045,253 $37,519,833 $32,283,693 $31,326,168
Ratio of net investment income to
average net assets................... 5.73%+ 5.98% 5.88% 6.10% 5.66% 5.26%
Ratio of expenses to average net
assets............................... 0.63%+ 0.51% 0.48% 0.49% 0.52% 0.52%
Portfolio turnover rate................ 6.23% 79.25% 33.59% 32.07% 25.41% 50.61%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1992 1991 1990 1989
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $ 10.22 $ 9.69 $ 9.85 $ 9.63
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.59 0.77 0.84 0.90
Net gains (losses) on investments
(both realized and unrealized)..... 0.11 0.71 (0.16) 0.22
----------- ----------- ----------- -----------
Total from investment operations... 0.70 1.48 0.68 1.12
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.59) (0.77) (0.84) (0.90)
Distributions (from realized capital
gains)............................. 0.00* 0.00 0.00 0.00
Distributions (from additional
paid-in capital)................... 0.00 (0.18) 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................ (0.59) (0.95) (0.84) (0.90)
----------- ----------- ----------- -----------
Net asset value, end of period......... $ 10.33 $ 10.22 $ 9.69 $ 9.85
=========== =========== =========== ===========
Total return....................... 6.85% 15.27% 6.90% 11.63%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.............. $20,911,161 $22,005,519 $20,260,361 $20,419,237
Ratio of net investment income to
average net assets................... 6.24% 7.88% 8.52% 8.67%
Ratio of expenses to average net
assets............................... 0.53% 0.51% 0.54% 0.60%
Portfolio turnover rate................ 62.27% 55.03% 20.06% 30.99%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
88
<PAGE> 105
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 13.64 $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................. 0.33 0.76 0.79 0.74 0.84 0.50
Net gains (losses) on investments
(both realized and unrealized)...... 0.39 0.83 (0.83) 2.41 (1.58) 1.09
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations.... 0.72 1.59 (0.04) 3.15 (0.74) 1.59
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................. (0.72) (0.79) 0.00 (0.74) (0.84) (0.50)
Distributions (from realized capital
gains).............................. (0.06) 0.00 0.00 0.00 0.00 (0.23)
Distributions (from additional paid-in
capital)............................ 0.00 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................. (0.78) (0.79) 0.00 (0.74) (0.84) (0.73)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period.......... $ 13.58 $ 13.64 $ 12.84 $ 12.88 $ 10.47 $ 12.05
=========== =========== =========== =========== =========== ===========
Total return........................ 5.50% 13.44% (.31%) 30.04% (6.14%) 14.21%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............... $87,081,586 $75,352,764 $62,098,817 $62,017,889 $44,012,329 $63,044,619
Ratio of net investment income to
average net assets.................... 5.78%+ 6.33% 6.40% 6.58% 6.45% 5.69%
Ratio of expenses to average net
assets................................ 0.59%+ 0.49% 0.46% 0.48% 0.49% 0.48%
Portfolio turnover rate................. 14.67% 37.08% 59.78% 79.45% 110.19% 45.93%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1992 1991 1990 1989
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 11.03 $ 10.47 $ 10.70 $ 9.97
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................. 0.81 0.72 0.90 0.96
Net gains (losses) on investments
(both realized and unrealized)...... 0.16 1.12 (0.23) 0.73
----------- ----------- ----------- -----------
Total from investment operations.... 0.97 1.84 0.67 1.69
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................. (0.74) (0.72) (0.90) (0.96)
Distributions (from realized capital
gains).............................. 0.00* (0.37) 0.00 0.00
Distributions (from additional paid-in
capital)............................ (0.07) (0.19) 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................. (0.81) (1.28) (0.90) (0.96)
----------- ----------- ----------- -----------
Net asset value, end of period.......... $ 11.19 $ 11.03 $ 10.47 $ 10.70
=========== =========== =========== ===========
Total return........................ 8.79% 17.57% 6.26% 16.95%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............... $29,564,159 $23,207,734 $20,532,817 $20,770,552
Ratio of net investment income to
average net assets.................... 7.71% 8.12% 8.72% 8.54%
Ratio of expenses to average net
assets................................ 0.51% 0.51% 0.53% 0.64%
Portfolio turnover rate................. 0.17% 63.68% 27.49% 36.00%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
89
<PAGE> 106
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
------------ ---------- ---------- ---------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 20.61 $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13
---------- ---------- ---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income............ 1.37 0.34 0.36 0.43 0.38 0.37 0.42
Net gains (losses) on investments
(both realized and
unrealized).................... 1.29 3.80 1.91 3.03 (0.24) 1.01 (0.29)
---------- ---------- ---------- ---------- ----------- ----------- -----------
Total from investment
operations................... 2.66 4.14 2.27 3.46 0.14 1.38 0.13
---------- ---------- ---------- ---------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)........................ (1.64) (0.39) 0.00 (0.43) (0.38) (0.37) (0.42)
Distributions (from realized
capital gains)................. (3.31) (1.13) 0.00 (0.43) (0.09) (0.18) (0.20)
Distributions (in excess of
realized capital gain)......... 0.00 0.00 0.00 (0.02) 0.00 0.00* 0.00*
---------- ---------- ---------- ---------- ----------- ----------- -----------
Total distributions............ (4.95) (1.52) 0.00 (0.88) (0.47) (0.55) (0.62)
---------- ---------- ---------- ---------- ----------- ----------- -----------
Net asset value, end of period.... $ 18.32 $ 20.61 $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64
========== ========== ========== ========== =========== =========== ===========
Total return................... 13.81% 24.97% 14.44% 26.32% 1.03% 10.92% 0.99%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $3,247,722 $3,229,389 $3,380,587 $3,272,075 $ 2,860,700 $34,076,498 $22,704,133
Average commission rate........... $ 0.0485 $ 0.0583 $ 0.0412 N/A N/A N/A N/A
Ratio of net investment income to
average net assets............... 0.40%+ 1.43% 2.02% 2.68% 3.19% 3.13% 3.68%
Ratio of expenses to average net
assets........................... 1.83%+ 1.10% 0.91% 0.95% 0.57% 0.53% 0.57%
Portfolio turnover rate........... 14.81% 32.58% 24.43% 27.69% 51.38% 28.98% 26.44%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------
1991 1990 1989
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $ 11.75 $ 12.27 $ 11.26
----------- ----------- -----------
Income from investment operations
Net investment income............ 0.53 0.70 0.75
Net gains (losses) on investments
(both realized and
unrealized).................... 1.86 (0.40) 1.74
----------- ----------- -----------
Total from investment
operations................... 2.39 0.30 2.49
----------- ----------- -----------
Less distributions
Dividends (from net investment
income)........................ (0.53) (0.71) (0.75)
Distributions (from realized
capital gains)................. (0.48) (0.11) (0.73)
Distributions (in excess of
realized capital gain)......... 0.00 0.00 0.00
----------- ----------- -----------
Total distributions............ (1.01) (0.82) (1.48)
----------- ----------- -----------
Net asset value, end of period.... $ 13.13 $ 11.75 $ 12.27
=========== =========== ===========
Total return................... 20.34% 2.44% 22.11%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $16,829,653 $10,373,263 $12,319,454
Average commission rate........... N/A N/A N/A
Ratio of net investment income to
average net assets............... 4.72% 6.04% 5.86%
Ratio of expenses to average net
assets........................... 0.60% 0.63% 0.67%
Portfolio turnover rate........... 22.03% 11.49% 8.06%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
90
<PAGE> 107
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, --------------------------------------
1998 1997 1996 1995
------------ ----------- ----------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 10.89 $ 10.58 $ 10.21 $ 9.51
----------- ----------- ----------- ----------
Income from investment operations
Net investment income.............. 0.21 0.45 0.45 0.34
Net gains (losses) on investments
(both realized and unrealized)... 0.10 0.28 (0.08) 0.70
----------- ----------- ----------- ----------
Total from investment
operations..................... 0.31 0.73 0.37 1.04
----------- ----------- ----------- ----------
Less distributions
Dividends (from net investment
income).......................... (0.44) (0.42) 0.00 (0.34)
Distributions (from realized
capital gains)................... 0.00 0.00 0.00 (0.00)*
Distributions (in excess of
realized capital gains).......... 0.00 0.00 0.00 (0.00)
----------- ----------- ----------- ----------
Total distributions.............. (0.44) (0.42) 0.00 (0.34)
----------- ----------- ----------- ----------
Net asset value, end of period....... $ 10.76 $ 10.89 $ 10.58 $ 10.21
=========== =========== =========== ==========
Total return..................... 2.93% 7.18% 3.62% 10.89%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............ $31,326,963 $25,065,893 $16,383,300 $8,555,893
Ratio of net investment income to
average net assets................. 5.33%+ 5.52% 5.59% 6.10%
Ratio of expenses to average net
assets............................. 0.68%+ 0.56% 0.55% 0.74%
Portfolio turnover rate.............. 14.20% 19.14% 12.52% 0.28%
<CAPTION>
FOR THE PERIOD
MAY 1, 1991**
FOR THE YEARS ENDED DECEMBER 31, THROUGH
------------------------------------------ DECEMBER 31,
1994 1993 1992 1991
---------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 9.72 $ 9.66 $ 10.70 $ 10.00
---------- ----------- ----------- -----------
Income from investment operations
Net investment income.............. 0.05 0.52 1.00 0.27
Net gains (losses) on investments
(both realized and unrealized)... (0.21) 0.27 (0.25) 0.70
---------- ----------- ----------- -----------
Total from investment
operations..................... (0.16) 0.79 0.75 0.97
---------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income).......................... (0.05) (0.52) (1.00) (0.27)
Distributions (from realized
capital gains)................... 0.00 (0.21) (0.79) 0.00
Distributions (in excess of
realized capital gains).......... 0.00 0.00* 0.00 0.00
---------- ----------- ----------- -----------
Total distributions.............. (0.05) (0.73) (1.79) (0.27)
---------- ----------- ----------- -----------
Net asset value, end of period....... $ 9.51 $ 9.72 $ 9.66 $ 10.70
========== =========== =========== ===========
Total return..................... (2.68%)+++ 8.18% 7.01% 9.70%++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............ $1,204,231 $20,036,097 $19,096,791 $42,235,195
Ratio of net investment income to
average net assets................. 5.43%+++ 5.06% 6.25% 5.75%+
Ratio of expenses to average net
assets............................. 0.57%+++ 0.53% 0.50% .43%+
Portfolio turnover rate.............. 7.82% 41.01% 28.28% 151.81%
</TABLE>
- ---------------
* Less than $.01 per share.
** Commencement of operations.
+ Annualized
++ Average Annual
+++ Annualized since Portfolio was dormant from June 24, 1994 to November 18,
1994.
91
<PAGE> 108
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, ----------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------ ------------ ------------ ------------ ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ----------- -----------
Income from investment operations
Net investment income............ 0.03 0.05 0.05 0.05 0.04 0.03
Less distributions
Dividends (from net investment
income)........................ (0.03) (0.05) (0.05) (0.05) (0.04) (0.03)
------------ ------------ ------------ ------------ ----------- -----------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ =========== ===========
Total return................... 2.56% 5.15% 5.00% 5.50% 3.82% 2.75%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $164,168,047 $158,286,237 $144,932,159 $110,366,978 $83,352,731 $65,474,860
Ratio of net investment income to
average net assets............... 5.60%+ 5.11% 4.95% 5.30% 3.77% 2.62%
Ratio of expenses to average net
assets........................... 0.48%+ 0.46% 0.45% 0.46% 0.49% 0.46%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1992 1991 1990 1989
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............ 0.03 0.06 0.07 0.08
Less distributions
Dividends (from net investment
income)........................ (0.03) (0.06) (0.07) (0.08)
----------- ----------- ----------- -----------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ===========
Total return................... 3.31% 5.60% 7.22% 8.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $50,892,593 $34,642,974 $26,924,389 $10,817,623
Ratio of net investment income to
average net assets............... 3.17% 5.80% 7.63% 8.06%
Ratio of expenses to average net
assets........................... 0.48% 0.54% 0.54% 0.92%
</TABLE>
- ---------------
+ Annualized
92
<PAGE> 109
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
<TABLE>
<S> <C>
DIRECTORS AND PRINCIPAL OFFICERS
Kenneth M. Levine Chairman, President and Director
Joel Davis Director
Michael J. Drabb Director
Alan J. Hartnick Director
Floyd L. Smith Director
Edward E. Hill Vice President-Compliance
David V. Weigel Treasurer
John P. Keller Controller
Frederick C. Tedeschi Secretary
INVESTMENT ADVISER
MONY Life Insurance Co. of America
1740 Broadway
New York, New York 10019
PRINCIPAL UNDERWRITER AND DISTRIBUTOR
MONY Securities Corp.
1740 Broadway
New York, New York 10019
CUSTODIAN
Chase Manhattan Bank
4 New York Plaza
New York, New York 10004
TRANSFER AGENT
The Mutual Life Insurance Co. of New York
1740 Broadway
New York, New York 10019
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers L.L.P.
1301 Avenue of the Americas
New York, New York 10019
</TABLE>
93
<PAGE> 110
(This page intentionally left blank)
94
<PAGE> 111
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The objective of Enterprise Accumulation Trust Equity Portfolio is to seek
long term capital appreciation through investment in a diversified portfolio of
equity securities selected on the basis of a value-oriented approach to
investing.
The portfolio's year-to-date performance was dampened by an above-average
cash position. This cash not only generates a yield and helps shield against the
potential impact of a market decline, but also provides a resource to purchase
quality stocks opportunistically when they become available at attractive
prices.
As always, OpCap selects stocks as if buying the whole business, with the
requirement that the company generate enough cash to make the investment
worthwhile. Despite generally high stock market valuations today, OpCap
continues to find individual stocks that meet its criteria.
During the first six months of 1998, OpCap established new positions in the
common stocks of Champion International Corp., International Flavours and
Fragrances, Inc., Union Pacific Corp., Anadarko Petroleum Corp., and Rockwell
International Corp., among others. Rockwell International is a world leader in
industrial automation, avionics and communications and electronic commerce.
Anadarko is one of the world's largest independent oil and gas exploration and
production companies. OpCap's investment in Anadarko is based on the company's
strong fundamentals and inexpensive valuation and is not a bet on the future
direction of crude oil prices. Anadarko has doubled its oil and gas reserves and
production over the past decade at a time when many other petroleum companies
have experienced reserve and production declines. Moreover, the company
continues to add to reserves at finding costs consistently below industry
averages.
OpCap eliminated the following holdings, among others, during the period:
Adaptec, Inc., Monsanto Co., Tenneco, Inc., Triton Energy, Avon Products,
General Electric Co., and Sysco Corp. OpCap is a long-term investor in quality
businesses, selling when a stock reaches its price target, when the fundamentals
that caused it to buy the stock change, or when it finds another stock that
offers compellingly better value. Monsanto is an example. Its conversion from
commodity chemicals to the number one position in agricultural biotechnology
propelled a more-or-less non-stop price rise for the stock over the past year.
As it reached OpCap's price target, OpCap sold at a significant profit.
OpCap believes that some of the best investment value is found in
businesses that generate a high and sustainable level of cash flow, where
management uses the cash flow to benefit shareholders, such as through stock
repurchase, dividends, high-return internal investments, or acquisitions.
Because these businesses constantly create additional shareholder value, their
underlying economic value and market price often rise in tandem for long
periods. The companies in which the portfolio has investments generate returns
on equity that are, on average, significantly higher than the S&P 500,
indicating their superior business characteristics. Yet, their average
price/earnings ratio is significantly lower than the S&P 500, indicating their
attractive value. Although value stocks have underperformed this year, OpCap
believes that in the long run they may outperform growth stocks.
On balance, OpCap thinks the economic outlook is positive, but there are
some concerns. As always, OpCap buys individual stocks, not the indices or the
economy. Nonetheless, OpCap remains alert to macro trends because they affect
the overall investment environment and the stocks OpCap owns.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
95
<PAGE> 112
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 87.05%
- ----------------------------------------------------------------------
ADVERTISING -- 1.52%
Omnicom Group Inc. 190,000 $ 9,476,250
AEROSPACE -- 9.56%
Allied Signal Inc. 91,840 4,075,400
Boeing Company 103,657 4,619,215
Lockheed Martin Corporation 230,000 24,351,250
Rockwell International
Corporation 250,000 12,015,625
Textron Inc. 200,000 14,337,500
------------
59,398,990
AUTOMOTIVE -- 1.97%
LucasVarity PLC (ADR) 307,000 12,222,437
BANKING -- 5.87%
BankBoston Corporation 214,000 11,903,750
Citicorp 84,544 12,618,192
Wells Fargo & Company 32,362 11,941,578
------------
36,463,520
CHEMICALS -- 2.36%
Du Pont (E. I.) de Nemours &
Company 140,000 10,447,500
Hercules Inc. 102,202 4,203,057
------------
14,650,557
CONSUMER PRODUCTS -- 2.46%
International Flavours &
Fragrances Inc. 270,000 11,728,125
Mattel Inc. 84,875 3,591,273
------------
15,319,398
CRUDE & PETROLEUM -- 1.08%
Anadarko Petroleum Corporation 100,000 6,718,750
DRUGS & MEDICAL PRODUCTS -- 2.08%
Becton, Dickinson & Company 166,158 12,898,015
ELECTRICAL EQUIPMENT -- 1.47%
Avnet Inc. 167,000 9,132,813
ELECTRONICS -- 0.49%
Arrow Electronics Inc. (a) 140,924 3,065,097
FOOD & BEVERAGES & TOBACCO -- 3.82%
Diageo PLC (ADR) 166,384 8,017,629
Philip Morris Companies Inc. 400,000 15,750,000
------------
23,767,629
HEALTH CARE -- 2.32%
Tenet Healthcare Corporation (a) 460,700 14,396,875
INSURANCE -- 21.06%
ACE Ltd. 828,000 32,292,000
AFLAC Inc. 350,256 10,617,135
American International Group
Inc. 38,418 5,609,028
Everest Reinsurance Holdings 400,000 15,375,000
EXEL Ltd. 331,348 25,783,016
General Re Corporation 75,000 19,012,500
Mid Ocean Ltd. 150,000 11,775,000
Renaissance Holdings Ltd. 225,000 10,420,313
------------
130,883,992
MACHINERY -- 3.81%
Caterpillar Inc. 241,000 12,742,875
Dover Corporation 320,000 10,960,000
------------
23,702,875
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING -- 1.87%
General Dynamics Corporation 250,000 $ 11,625,000
MISC. FINANCIAL SERVICES -- 8.67%
Countrywide Credit Industries
Inc. 286,088 14,518,966
Federal Home Loan Mortgage
Corporation 304,180 14,315,471
Green Tree Financial Corporation 585,000 25,045,313
------------
53,879,750
PAPER & FOREST PRODUCTS -- 1.50%
Champion International
Corporation 190,000 9,345,625
PUBLISHING -- 0.88%
Donnelley R R & Sons Company 120,000 5,490,000
RESTAURANTS -- 3.18%
McDonald's Corporation 286,000 19,734,000
RETAIL -- 2.84%
May Department Stores Company 269,712 17,666,136
TELECOMMUNICATIONS -- 1.60%
Sprint Corporation 141,000 9,940,500
TRANSPORTATION -- 6.64%
AMR Corporation (a) 138,000 11,488,500
Canadian Pacific Ltd. 300,000 8,512,500
Carnival Corporation 336,000 13,314,000
Union Pacific Corporation 180,000 7,942,500
------------
41,257,500
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $375,574,414) 541,035,709
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 9.62%
- ----------------------------------------------------------------------
General Motors Acceptance
Corporation,
5.53% due 07/22/98 $ 25,000,000 24,919,354
Household Finance Corporation
5.53% due 07/14/98 15,000,000 14,970,046
IBM Credit Corporation
5.52% due 07/27/98 20,000,000 19,920,267
------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $59,809,667) 59,809,667
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.22%
- ----------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 5.00% due 07/01/98
Collateral: U.S. Treasury Bond
$12,780,000 12.50% due
08/15/14 Value $20,430,721 20,030,000 20,030,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $20,030,000) 20,030,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $455,414,081) $620,875,376
OTHER ASSETS LESS LIABILITIES -- 0.11% 669,555
------------
NET ASSETS 100% $621,544,931
======================================================================
</TABLE>
(a) Non-income producing security.
ADR American Depository Receipt.
See accompanying notes to financial statements.
96
<PAGE> 113
SMALL COMPANY VALUE PORTFOLIO
GABELLI ASSET MANAGEMENT COMPANY (FORMERLY GAMCO INVESTORS, INC.)
RYE, NEW YORK
The objective of Enterprise Accumulation Trust Small Company Value
Portfolio is to seek capital appreciation through investments in a diversified
portfolio consisting primarily of equity securities of companies with market
capitalizations of under $1 billion.
Early in the period, Whitman spun-off Hussman, its commercial refrigeration
business, and Midas Muffler to shareholders. The three pieces are now trading
well above Whitman's price prior to the spin-offs. The portfolio owns many more
companies whose parts are, in Gabelli's view, worth considerably more than the
current market value as a whole. Gabelli believes corporate managements may
continue to feel some pressure from investors to restructure their companies in
ways that make strategic and financial sense.
In addition, there are several industry groups that, despite strong
performance over the last year or so, still look quite reasonable. The
broadcasting, publishing, cable television, cable network, and cellular
telephone industries have largely favorable prospects and, because these are
primarily domestic businesses, they are not vulnerable to potential weaknesses
in Asia and Latin American economies. Early in the year, several of the best
performers in the portfolio were in these industries. Price Communications
enjoyed a strong surge as its board approved a 500,000 share buyback, the
company declared a five-for-four stock split, and Wall Street analysts began to
recommend the company. Paxson Communications, United Video Satellite, Comsat,
Cablevision, Century Communications, Echostar, AFC Cable, and Associated Group
rose substantially during the first six months of the year.
The portfolio's media and telecommunications holdings posted strong returns
during the period. These industry groups are all benefiting from very powerful
and, in Gabelli's opinion, sustainable trends. The announcement on June 24 that
AT&T would acquire Telecommunications Inc., the nation's largest cable operator,
was an historic catalyst that helped focus investor attention on the portfolio's
cable holding. Major beneficiaries were Rogers Communications and Cablevision
Systems. Other communications stocks, such as Price Communications, Century
Communications, and Centennial Cellular, rose sharply.
Industrial stocks did not fare as well in the first half of 1998, partly
due to Asian economic turmoil. Borg Warner Automotive declined, and Flowserve,
Coltec Industries, and Navistar International also had weak performance. Gabelli
believes these companies still have strong franchises and very attractive
long-term business prospects.
While investors worry about a substantial correction or even bear market
for the Dow and S&P 500, small-cap stocks are already experiencing one. Although
year-to-date the Russell 2000 is up 4.91 percent, approximately 60 percent of
all NASDAQ-listed stocks are off 20 percent or more from their 52-week highs.
While the portfolio saw some negatives due to Asian woes, small companies
operating primarily in the domestic market seem far less vulnerable to Asian
economic problems than the large multinationals. This has not prevented
investors from abandoning small-cap stocks to chase large-cap stock returns.
Gabelli is a patient investor that counts on the market's mood swings to allow
it to buy quality companies at discount prices. The gap in valuation between
large and small stocks allows Gabelli to take advantage of that discrepancy.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
97
<PAGE> 114
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 94.69%
- ----------------------------------------------------------------------
ADVERTISING -- 1.83%
The Ackerley Group Inc. 400,000 $ 8,400,000
AEROSPACE -- 7.97%
AAR Corporation 7,500 221,719
Aeroquip Vickers Inc. 50,000 2,918,750
Ametek, Inc. 88,000 2,579,500
Coltec Industries Inc. (a) 180,000 3,577,500
Curtiss Wright Corporation 95,000 3,722,812
Gencorp Inc. 210,000 5,302,500
Kaman Corporation (Class A) 30,000 570,938
Moog Inc. (Class A) (a) 25,000 954,687
Sequa Corporation (Class A) (a) 70,000 4,672,500
Sequa Corporation (Class B) (a) 39,000 3,061,500
SPS Technologies Inc. (a) 153,000 8,950,500
------------
36,532,906
APPAREL & TEXTILES -- 0.35%
Carlyle Inds Inc. (a) 197,759 247,199
Hartmarx Corporation (a) 180,000 1,361,250
------------
1,608,449
AUTOMOTIVE -- 7.46%
Borg Warner Automotive Inc. 4,000 192,250
Clarcor Inc. 217,500 4,567,500
Federal Mogul Corporation 32,000 2,160,000
Lund International
Holdings Inc. (a) 15,000 170,625
Modine Manufacturing Company 230,000 7,963,750
Navistar International
Corporation Inc. (a) 90,000 2,598,750
Scheib Earl Inc. (a) 225,000 1,715,625
Smith A O Corporation 6,000 310,125
Standard Motor Products Inc. 220,000 4,895,000
Superior Industries
International Inc. 38,000 1,071,125
Tyler Corporation (a) 200,000 2,062,500
Wynns International Inc. 335,000 6,448,750
------------
34,156,000
BROADCASTING -- 11.47%
BET Holdings Inc. (Class A) (a) 145,000 9,125,937
Chris-Craft Industries Inc. (a) 162,000 8,859,375
Echostar Communications
Corporation (a) 20,000 481,250
Gray Communications Systems Inc. 55,000 1,780,625
Gray Communications Systems Inc.
(Class B) 110,000 3,396,250
GST Telecommunications Inc. (a) 270,000 3,898,125
Paxar Corporation (a) 75,000 862,500
Paxson Communications
Corporation (a) 240,000 2,910,000
United International Holdings
Inc. (Class A) (a) 72,000 1,152,000
United Television Inc. 53,400 6,114,300
USA Networks Inc. (a) 555,000 13,944,375
------------
52,524,737
BUSINESS SERVICES -- 0.27%
Nashua Corporation (a) 80,000 1,250,000
CABLE -- 8.52%
AFC Cable Systems Inc. (a) 30,000 1,065,000
Cable Michigan Inc. (a) 17,500 682,500
Cablevision Systems Corporation
(Class A) (a) 340,000 28,390,000
Century Communications
Corporation (Class A) (a) 126,000 2,362,500
Mercom Inc. (a) 90,000 990,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
Rogers Communications Inc.
(Class B) (a) 375,000 $ 3,375,000
TCI Satellite Entertainment Inc.
(Class A) (a) 150,000 881,250
United Video Satellite Group
(Class A) (a) 32,500 1,287,812
------------
39,034,062
CAPITAL GOODS & SERVICES -- 0.49%
Hussmann International Inc. 120,000 2,227,500
CHEMICALS -- 2.26%
Church & Dwight Company Inc. 100,000 3,237,500
Lawter International Inc. 255,000 2,773,125
Sybron Chemicals Inc. (a) 135,000 4,320,000
------------
10,330,625
COMPUTER HARDWARE -- 0.02%
Cerion Technologies Inc. (a) 70,000 72,188
COMPUTER SERVICES -- 0.13%
Checkfree Holdings Corporation
(a) 20,500 603,469
CONSUMER DURABLES -- 0.37%
Noel Group (a) 135,000 337,500
Oneida Ltd. 45,000 1,378,125
------------
1,715,625
CONSUMER NON-DURABLES -- 0.03%
Tennant Company 3,000 132,750
CONSUMER PRODUCTS -- 0.26%
American Safety Razor Company
(a) 15,000 219,375
ARC International Corporation
(a) 22,000 90,750
Weider Nutrition International
Inc. 51,500 875,500
------------
1,185,625
CONSUMER SERVICES -- 1.08%
Berlitz International Inc. (a) 49,000 1,323,000
ITT Educational Services Inc.
(a) 55,000 1,773,750
Mikasa Inc. 62,000 790,500
N2K Inc. (a) 55,000 1,079,375
------------
4,966,625
ELECTRICAL EQUIPMENT -- 2.25%
Ampco Pittsburgh Corporation 130,000 1,998,750
Corecom Inc. (a) 106,000 2,782,500
Oak Technology Inc. (a) 35,000 159,687
Thomas Industries Inc. 220,000 5,376,250
------------
10,317,187
ELECTRONICS -- 0.42%
CTS Corporation 65,000 1,917,500
ENERGY -- 0.21%
Kaneb Services Inc. (a) 180,000 978,750
ENTERTAINMENT & LEISURE -- 5.35%
Ascent Entertainment
Group Inc. (a) 150,000 1,668,750
Bull Run Corporation (a) 130,000 633,750
Churchill Downs Inc. 33,000 1,369,500
Florida Panthers Holdings Inc.
(a) 90,000 1,771,875
Gaylord Entertainment Company 220,001 7,095,032
GC Companies Inc. (a) 174,000 9,026,250
Jackpot Enterprises Inc. (a) 235,000 2,952,188
------------
24,517,345
FINANCE -- 0.84%
Moneygram Payment
Systems Inc. (a) 5,000 84,063
Pioneer Group Inc. 143,000 3,762,687
------------
3,846,750
</TABLE>
98
<PAGE> 115
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
FOOD & BEVERAGES & TOBACCO -- 6.53%
Brunos Inc. (a) 180,000 $ 188,438
Celestial Seasonings Inc. (a) 117,000 5,791,500
Chock Full o' Nuts Corporation
(a) 285,000 1,941,563
Eskimo Pie Corporation 94,000 1,186,750
General Cigar Holdings Inc.
(Class A) (a) 135,000 1,333,125
General Cigar Holdings Inc.
(Class B) (a) 190,000 1,876,250
Giant Foods Inc. (Class A) 150,000 6,459,375
Ingles Markets Inc. (Class A) 75,000 1,087,500
Pepsi Cola Puerto Rico Bottling
Company (a) 150,000 1,125,000
Ralcorp Holdings Inc. (a) 26,000 490,750
Tootsie Roll Industries Inc. 48,739 3,740,718
Whitman Corporation 205,000 4,702,187
------------
29,923,156
GAMING -- 0.15%
Grand Casinos Inc. (a) 40,000 670,000
HEALTH CARE -- 0.08%
4Health Inc. (a) 49,000 346,063
HOTELS & RESTAURANTS -- 1.46%
Advantica Restaurant Group Inc.
(a) 35,000 341,250
Aztar Corporation (a) 500,000 3,406,250
Extended Stay America Inc. (a) 40,000 450,000
Trump Hotels & Casino Resorts
Inc. (a) 350,000 2,471,875
------------
6,669,375
INSURANCE -- 1.67%
Argonaut Group Inc. 61,000 1,929,125
Danielson Holding Corporation
(a) 25,000 184,375
Liberty Corporation 110,000 5,534,375
------------
7,647,875
MACHINERY -- 4.45%
Baldwin Technology Company Inc.
(Class A) (a) 160,000 940,000
Banner Aerospace Inc. (a) 77,000 991,375
Commercial Intertech Corporation 12,000 217,500
Daniel Industries Inc. 40,000 760,000
Fairchild Corporation (Class A)
(a) 95,000 1,917,812
Flowserve Corporation 90,000 2,216,250
Franklin Electric Company Inc. 20,000 1,360,000
Hach Company 22,000 272,938
Hach Company (Class A) 22,000 239,250
Idex Corporation 70,000 2,415,000
Katy Industries Inc. 160,000 2,920,000
Kollmorgen Corporation 130,000 2,608,125
Nortek Inc. (a) 100,000 3,075,000
Standex International
Corporation 15,000 444,375
------------
20,377,625
MANUFACTURING -- 2.60%
Barnes Group Inc. 30,000 811,875
Bway Corporation (a) 1,500 32,250
Crane Company 65,000 3,156,562
Cuno Inc. (a) 3,000 64,875
Fedders Corporation (Class A) 385,000 2,454,375
Graco Inc. 25,000 871,875
Industrial Distribution Group
Inc. (a) 30,000 465,000
Oil Dri Corporation of America 120,000 1,732,500
Park Ohio Holdings Corporation
(a) 75,000 1,387,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
Rawlings Sporting Goods Company,
Inc. (a) 5,000 $ 66,875
Strattec Security Corporation
(a) 28,000 843,500
------------
11,887,187
METALS & MINING -- 0.60%
Calmat Company 50,000 1,100,000
Prime Resources Group Inc. 40,000 277,500
TVX Gold Inc. (a) 200,000 612,500
WHX Corporation (a) 60,000 772,500
------------
2,762,500
MISC. FINANCIAL SERVICES -- 1.19%
Data Broadcasting Corporation
(a) 180,000 1,147,500
Midland Company 189,000 4,323,375
------------
5,470,875
PAPER PRODUCTS -- 0.47%
Greif Brothers Corporation
(Class A) 58,000 2,167,750
PHARMACEUTICALS -- 2.38%
Agribrands International Inc.
(a) 12,000 363,000
Carter Wallace Inc. 236,400 4,269,975
Ivax Corporation (a) 420,000 3,885,000
Twinlab Corporation (a) 55,000 2,402,812
------------
10,920,787
PRINTING & PUBLISHING -- 4.83%
Belo A H Corporation (Class A) 26,000 633,750
Lee Enterprises Inc. 108,000 3,307,500
McClatchy Company (Class A) 90,000 3,116,250
Media General Inc. (Class A) 147,000 7,166,250
Meredith Corporation 40,000 1,877,500
Price Communications Corporation
(a) 157,421 2,410,509
Pulitzer Publishing Company 32,000 2,856,000
Topps Company Inc. (a) 250,000 773,438
------------
22,141,197
REAL ESTATE -- 1.26%
Catellus Development Corporation
(a) 220,000 3,891,250
Griffin Land & Nurseries Inc.
(a) 108,500 1,898,750
------------
5,790,000
RETAIL -- 3.34%
Burlington Coat Factory
Warehouse Corporation 115,000 2,587,500
Coldwater Creek Inc. (a) 35,000 962,500
Lillian Vernon Corporation 125,000 2,078,125
Neiman Marcus Group Inc. (a) 180,000 7,818,750
Phar Mor Inc. (a) 65,000 710,937
Ragan Brad Inc. (a) 30,000 1,147,500
------------
15,305,312
SECURITY & INVESTIGATION SERVICES -- 2.75%
Borg Warner Security Corporation
(a) 20,000 452,500
Pittway Corporation 3,000 228,750
Pittway Corporation (Class A) 41,000 3,028,875
Rollins Inc. 390,000 7,995,000
Wackenhut Corporation (Class A) 40,000 905,000
------------
12,610,125
TELECOMMUNICATIONS -- 5.54%
Aerial Communications Inc. (a) 180,000 1,125,000
Aliant Communications Inc. 10,000 274,375
Associated Group Inc. (Class A)
(a) 76,000 3,116,000
Atlantic Tele-Network Inc. (a) 15,000 183,750
Centennial Cellular Corporation
(Class A) (a) 145,000 5,410,313
</TABLE>
99
<PAGE> 116
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
Commonwealth Telephone
Enterprises (Class B) (a) 53,333 $ 1,399,991
Communications Systems Inc. 15,000 240,000
Comsat Corporation 190,000 5,379,375
Emerging Communications Inc. (a) 10,000 85,625
RCN Corporation (a) 131,000 2,538,125
Rogers Cantel Mobile
Communications Inc. (Class B)
(a) 40,000 500,000
Telephone & Data Systems Inc. 130,000 5,118,750
------------
25,371,304
TRANSPORTATION -- 2.56%
GATX Corporation 226,000 9,915,750
Hudson General Corporation 30,000 1,518,750
Transpro Inc. 38,500 286,344
------------
11,720,844
UTILITIES -- 0.89%
Citizens Utilities Company
(Class B) (a) 392,925 3,781,903
Eastern Enterprises 7,000 300,125
------------
4,082,028
WASTE MANAGEMENT -- 0.28%
Envirosource Inc. (a) 72,425 1,267,438
WIRELESS COMMUNICATIONS -- 0.08%
Teligent Inc. (Class A) (a) 12,000 353,250
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $322,203,089) 433,802,784
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY BILLS -- 5.91%
- ----------------------------------------------------------------------
U.S. Treasury Bill
4.88% due 08/20/98 $ 8,076,000 $ 8,021,263
U.S. Treasury Bill 4.89% due
08/06/98 10,069,000 10,019,763
U.S. Treasury Bill 4.92% due
09/03/98 4,054,000 4,018,541
U.S. Treasury Bill 4.94% due
09/03/98 5,062,000 5,017,544
------------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $27,077,111) 27,077,111
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.48%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 5.00%
due 07/01/98 Collateral: U.S.
Treasury Bond $4,345,000
12.50%, due 08/15/14 Value
$6,946,126 6,805,000 6,805,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $6,805,000) 6,805,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $356,085,200) $467,684,895
OTHER ASSETS LESS LIABILITIES -- (2.08)% (9,536,835)
------------
NET ASSETS 100% $458,148,060
======================================================================
</TABLE>
(a) Non-income producing security.
See accompanying notes to financial statements.
100
<PAGE> 117
MANAGED PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The objective of Enterprise Managed Portfolio is to seek growth of capital
over time through investment in a portfolio consisting of common stocks, bonds
and cash equivalents, the percentages of which will vary based on the manager's
assessment of relative investment values.
Early in the year, the portfolio's results were driven by a limited number
of very large-capitalization stocks. The allocation of the portfolio reflected a
moderate increase in the ownership of stocks and a moderate decrease in its cash
position. The portfolio's performance lagged somewhat as the first half
unfolded, due in part to its large cash position and the underperformance of
value stocks. OpCap believes the U.S. economic outlook remains positive at this
time, but that many stocks are fully valued. Consequently, at June 30, the
portfolio's net assets were allocated 85 percent to common stocks, Treasury
notes and bonds, and 15 percent to cash and cash equivalents. OpCap intends to
use the portfolio's cash reserves to buy stocks OpCap likes as they are
available at attractive prices.
OpCap established new positions in several stocks, including Minnesota
Mining & Manufacturing Co. (3M), a leading research and technology company that
is achieving unit growth of about 10 percent a year. 3M's earnings for the
fourth quarter of 1997 fell short of investor expectations, causing the stock to
drop and creating an opportunity to buy a superb company at a reasonable price.
OpCap expects 3M to be back on track in the next several quarters, translating
unit growth into earnings growth.
Most of the portfolio's largest holdings performed well. Freddie Mac stock
repeatedly reached new highs, benefiting from the company's continued strong
business performance. Du Pont benefited from the belief of some investors that
the company is about to decide whether to divest its Conoco oil and gas
subsidiary. OpCap believes du Pont's new chief executive officer intends to
optimize returns on the company's asset base and recognizes that oil and gas
production, being a commodity business, is unlikely to earn above-average
returns. It seems likely, therefore, that du Pont may part with Conoco, even if
a decision is not reached in the immediate future. Citicorp performed well as
concerns eased about the potential impact of the Asian financial crisis on the
company's earnings. In early April, Citicorp announced plans to merge with
Travelers Group, Inc., causing the price of Citicorp stock to rise sharply.
McDonald's Corp. stock hit a new high amid signs the company is improving its
business performance in the U.S. while continuing to grow internationally. On
the other hand, Boeing Co. continued to have problems with the production of its
737 aircraft. OpCap thinks these problems have been largely overstated by
investors. Once Boeing gets beyond its current production difficulties, the
stock should be an advantageous investment.
Later in the period, OpCap established new positions in ITT Industries and
Reed International PLC. ITT is a diversified global manufacturer in the
automotive, defense, and electronics and fluid technology fields. Reed
International owns 52.9 percent of Reed Elsevier Group, which publishes
scientific, medical and legal journals and is a leader in the electronic
distribution of information to the scientific and legal communities. The value
of content in the Information Age has been rising, and so have Reed Elsevier's
prices and profits. With virtually no need for capital investment, Reed Elsevier
generates unusually high returns on equity. But three problems occurred: a
proposed merger with Wolters Kluwer fell through; Reed's minor operations in
travel services ran into trouble; and Reed paid a high price for an acquisition.
These problems caused the price of Reed International stock to decline from $48
per share to about $37 per share, creating a buying opportunity. The $37 price
is 18.5 times our 1998 earnings estimate for the company, a multiple below that
of the S&P 500. We think this price is inexpensive for the premier worldwide
provider of scientific and professional information.
The portfolio invests for the long term in reasonably-valued,
high-return-on-capital companies run by management teams that OpCap admires and
with whom it wants to collaborate. OpCap wants to own businesses that are
dominant in their industries and can control their own destinies instead of
being subject to the vicissitudes of change.
On balance, OpCap thinks the economic outlook is positive, but there are
some concerns. As always, OpCap buys individual stocks, not the indices or the
economy. Nonetheless, OpCap remains alert to macro trends because they affect
the overall investment environment and the stocks that the portfolio manager
owns.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
101
<PAGE> 118
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 84.90%
- ----------------------------------------------------------------------
AEROSPACE -- 4.98%
Boeing Company 2,600,000 $ 115,862,500
Textron Inc. 500,000 35,843,750
--------------
151,706,250
BANKING -- 14.11%
BankBoston Corporation 1,800,000 100,125,000
Chase Manhattan Corporation 200,000 15,100,000
Citicorp 1,050,000 156,712,500
M&T Bank Corporation 104,500 57,893,000
Wells Fargo & Company 271,600 100,220,400
--------------
430,050,900
CHEMICALS -- 9.78%
Dow Chemical Company 700,000 67,681,250
Du Pont (E. I.) de Nemours &
Company 2,150,000 160,443,750
Hercules Inc. 552,000 22,701,000
Monsanto Company 850,000 47,493,750
--------------
298,319,750
COMPUTER HARDWARE -- 0.85%
Intel Corporation 350,000 25,943,750
COMPUTER SOFTWARE -- 0.89%
Computer Associates
International Inc. 490,000 27,225,625
CONSUMER PRODUCTS -- 2.08%
Mattel Inc. 1,500,000 63,468,750
DRUGS & MEDICAL PRODUCTS -- 0.98%
Becton, Dickinson & Company 386,000 29,963,250
ELECTRICAL EQUIPMENT -- 0.22%
Varian Associates Inc. 170,400 6,645,600
ELECTRONICS -- 0.26%
Unitrode Corporation (a) 700,000 8,050,000
ENERGY -- 0.42%
Triton Energy Ltd. (a) 360,000 12,847,500
FINANCE -- 2.06%
American Express Company 550,000 62,700,000
FOOD & BEVERAGES & TOBACCO -- 4.62%
Diageo PLC (ADR) 2,109,000 101,627,438
Philip Morris Companies Inc. 1,000,000 39,375,000
--------------
141,002,438
INSURANCE -- 7.02%
ACE Ltd. 1,814,000 70,746,000
EXEL Ltd. 1,545,000 120,220,312
Transamerica Corporation 200,000 23,025,000
--------------
213,991,312
MACHINERY -- 5.04%
Caterpillar Inc. 1,826,000 96,549,750
Tenneco Inc. 1,500,000 57,093,750
--------------
153,643,500
MANUFACTURING -- 0.56%
ITT Industries Inc. 457,500 17,099,063
MISC. FINANCIAL SERVICES -- 6.24%
Countrywide Credit Industries
Inc. 550,000 27,912,500
Federal Home Loan Mortgage
Corporation 3,450,000 162,365,625
--------------
190,278,125
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 2.34%
Champion International
Corporation 1,450,000 $ 71,321,875
PRINTING & PUBLISHING -- 5.40%
Reed International PLC (ADR) 750,000 27,843,750
Time Warner Inc. 1,600,000 136,700,000
--------------
164,543,750
RAW MATERIALS -- 2.70%
Minnesota Mining &
Manufacturing Company 1,000,000 82,187,500
REAL ESTATE -- 1.45%
Security Capital Group Inc.
(Class A) (a) 33,156 44,096,993
RESTAURANTS -- 5.43%
McDonald's Corporation 2,400,000 165,600,000
TECHNOLOGY -- 0.89%
National Semiconductor
Corporation (a) 2,050,000 27,034,375
TELECOMMUNICATIONS -- 4.95%
Sprint Corporation 1,200,000 84,600,000
Telecom-TCI Ventures Group A
(a) 3,300,000 66,206,250
--------------
150,806,250
TRANSPORTATION -- 1.63%
UAL Corporation (a) 638,000 49,764,000
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,728,838,310) 2,588,290,556
- ----------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.00%
- ----------------------------------------------------------------------
RETAIL -- 0.00%
Venture Stores (a)(b) 32,922 3,086
--------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,566,100) 3,086
- ----------------------------------------------------------------------
U.S. TREASURY BONDS -- 0.33%
- ----------------------------------------------------------------------
U.S. Treasury Bond 6.25% due
08/15/23 $ 9,300,000 9,959,091
--------------
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $8,687,236 ) 9,959,091
- ----------------------------------------------------------------------
U.S. TREASURY NOTES -- 0.14%
- ----------------------------------------------------------------------
U.S. Treasury Note 7.875% due
08/15/01 3,952,500 4,209,887
--------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $3,986,164) 4,209,887
- ----------------------------------------------------------------------
</TABLE>
102
<PAGE> 119
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 13.72%
- ----------------------------------------------------------------------
American Home Products
Corporation, 5.50% due
07/13/98 $20,000,000 $ 19,963,333
Deere (John) Capital
Corporation 5.53% due
07/22/98 50,000,000 49,838,709
General Electric Capital
Corporation, 5.54% due
07/30/98 50,000,000 49,776,861
Goldman Sachs Group LP 5.54%
due 07/28/98 50,000,000 49,792,250
Merrill Lynch & Company Inc.
5.53% due 07/20/98 50,000,000 49,854,069
Merrill Lynch & Company Inc.
5.55% due 07/23/98 50,000,000 49,830,417
Ford Motor Credit Company
5.50% due 08/03/98 50,000,000 49,747,916
Ford Motor Credit Company
5.51% due 08/10/98 50,000,000 49,693,889
IBM Credit Corporation 5.50%
due 07/16/98 50,000,000 49,885,417
--------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $418,382,861) 418,382,861
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.80%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 5.00%
due 07/01/98
Collateral: U.S. Treasury
Bond $34,265,000 11.25% due
02/15/15
Value $56,090,229 $54,990,000 $ 54,990,000
--------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $54,990,000) 54,990,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $2,216,450,671) $3,075,835,481
OTHER ASSETS LESS LIABILITIES -- (0.89)% (27,272,805)
--------------
NET ASSETS 100% $3,048,562,676
======================================================================
</TABLE>
(a) Non-income producing security.
(b) In bankruptcy.
ADR American Depository Receipt.
See accompanying notes to financial statements.
103
<PAGE> 120
INTERNATIONAL GROWTH PORTFOLIO
BRINSON PARTNERS, INC.
CHICAGO, ILLINOIS
The objective of Enterprise Accumulation Trust International Growth
Portfolio is to seek capital appreciation, primarily through a diversified
portfolio of non-U.S. equity securities.
During the first six months of 1998, market allocation detracted from
portfolio value, given the strategic cash in the portfolio, as well as an
overweight of New Zealand and Singapore, and an underweight of Spain.
Domestic economies in Asia remained weighed down by the burden of currency,
property, and banking crises. In addition to ongoing concerns about Japan's
weakened economy and the continuing weakness of the yen, there were fresh fears
regarding the economic health of other Asian economies. Although European
markets initially reacted poorly to this flow of unwelcome news, most core
European markets rebounded strongly on a round of merger announcements in a
variety of sectors, including the financials, apparel, food retail, paper, auto
parts, and media. Further positive announcements about corporate earnings, as
well as the advent of the European Monetary Union and an improving economic
scenario, boosted many European markets.
Within Europe, Brinson added to select cyclical and consumer stocks, on the
back of a European recovery that has already produced signs of a healthy pickup
in both consumption and industrial production. And while cognizant of the
dampening impact of the Asian slowdown on demand, Brinson believes that many
shares already discount much of the bad news regarding negative expectations for
Asia.
The most important underweight in the portfolio still consists of a five
percent underweight in Japan. Brinson continues to see evidence that this market
has poor relative value. The return on equity for the overall Japanese market is
only 4.2 percent, inadequate compensation for the risk investors are asked to
bear. Changes are urgently needed in the regulatory environment within the
Japanese economy. Although stronger reform measures are desirable in the long
term for Japan, in the short to medium term, such reform may lead to negative
consequences, namely higher unemployment and lower asset prices. Among the other
non-U.S. markets, Brinson emphasizes Australia, New Zealand, the U.K. and,
within Europe, Belgium and Finland. Brinson is neutrally positioned in Germany,
France and the Netherlands, with no investments in Austria, Portugal or Spain.
The Asia ex-Japan region is underweighted.
Currency strategies within the portfolio remain unchanged. The Japanese yen
represents a four percent underweight. The Hong Kong dollar and the British
pound sterling are underweighted while the core European currencies (the German
deutschmark, French franc, Dutch guilder, Spanish peseta, Danish krone, Swedish
krona and Swiss franc) remain at a neutral weight.
As with all international growth funds, the Enterprise International Growth
Portfolio carries additional risks associated with possibly less stable foreign
securities and currencies, lack of uniform accounting standards and political
instability.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
104
<PAGE> 121
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND WARRANTS -- 93.21%
- ----------------------------------------------------------------------
AUSTRALIA -- 4.54%
Amcor Ltd. 20,800 $ 91,285
Boral Ltd. 61,500 115,674
Brambles Industries Ltd. 10,200 200,650
Broken Hill Proprietary 59,000 499,921
Coca Cola Amatil 12,000 77,842
CRA Ltd. 13,163 156,882
CSR Ltd. 37,800 109,344
David Jones Ltd. 117,000 134,361
Lend Lease Corporation 9,005 182,509
Mayne Nickless Ltd. 29,800 158,161
National Australia Bank 41,000 542,101
News Corporation 73,054 597,690
Orica Ltd. 12,400 73,509
Pacific Dunlop Ltd. 63,300 102,556
Qantas Airways Ltd. 63,312 95,501
Santos Ltd. 27,000 83,801
Telstra Corporation 114,700 294,768
Westpac Bank Corporation 67,600 413,332
WMC Ltd. 47,100 142,093
Woolworths Ltd. 23,500 76,585
-----------
4,148,565
BELGIUM -- 4.24%
Bruxelles Lambert Groupe 1,220 246,362
Delhaize Le Lion 4,250 297,123
Electrabel 2,330 660,971
Fortis AG 3,228 824,576
Fortis AG (Rts) (a) 128 7
Generale De Banque 300 105
KBC Banc Assurance 6,200 555,149
KBC Banc Assurance (VVPR) 130 8,809
Petrofina SA 1,180 484,660
Solvay 3,470 275,249
Tractebel CAP 2,710 397,136
Union Miniere (a) 2,063 127,585
-----------
3,877,732
CANADA -- 2.96%
Agrium Inc. 6,200 77,524
Alcan Aluminum Ltd. 4,900 134,858
Bank Montreal 3,600 198,158
Barrick Gold Corporation 3,000 57,083
Canadian National Railway Company 3,400 180,680
Canadian Pacific Ltd. 11,300 317,910
Extendicare Inc. Canada 7,900 63,080
Hudsons Bay Company 4,300 99,789
Imasco Ltd. 5,400 99,630
Imperial Oil Ltd. 12,000 209,575
Magna International Inc. 1,400 95,708
Moore Corporation Ltd. 5,100 68,102
Newbridge Networks Corporation
(a) 1,500 35,829
Noranda Inc. 5,100 88,030
Nova Corporation Alberta 13,100 150,002
Potash Corp Saskatchewan Inc. 1,400 105,603
Royal Bank Canada 4,600 276,647
Seagram Ltd. 1,900 77,405
Shaw Communications Inc. 7,300 141,877
Transcanada Pipelines Ltd. 6,900 152,859
Westcoast Energy Inc. 3,200 71,217
-----------
2,701,566
DENMARK -- 0.45%
Den Danske Bank 1,600 192,154
Tele Damark A/S 2,300 220,977
-----------
413,131
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
FINLAND -- 2.16%
Cultor Oyj 2,100 $ 34,099
Merita A Ltd. 32,900 217,291
Metsa Serla Oyj 6,700 64,787
Nokia Oyj 16,200 1,192,600
Outokumpu 4,100 52,362
Sampo Insurance A 2,500 118,590
UPM-Kymmene Oyj 8,250 227,283
Valmet Corporation 3,900 67,312
-----------
1,974,324
FRANCE -- 8.31%
Air Liquide 911 150,686
Alcatel Alsthom 1,776 361,622
AXA-UAP 3,620 407,165
AXA-UAP CVG (Wts) 2,120 722
Banque National de Paris 3,900 318,673
Carrefour 400 253,072
Cie De St Gobain 1,922 356,379
CSF Thomson 5,300 201,631
Dexla France 1,859 250,298
Eaux Cie General (Wts) (a) 2,369 4,663
Elf Aquitaine 2,920 410,540
Eridania Beghin Say 700 154,573
France Telecom 7,500 517,310
Groupe Danone 1,100 303,306
Lafarge Coppee SA 1,500 155,069
Lagardere 5,500 228,981
Michelin (CGDC) (Class B) 3,565 205,797
Paribas 2,690 287,879
Pechiney 3,216 129,529
Peugeot SA 1,625 349,422
Pinault Printemps Redo 250 209,240
Rhone-Poulenc SA 6,416 361,886
Seita 6,300 285,525
Soc Generale 1,515 314,993
Suez Lyonnaise Des Eaux 2,674 440,086
Total Company 2,327 302,533
Usinor 5,400 83,425
Vivendi 2,569 548,585
-----------
7,593,590
GERMANY -- 9.42%
Allianz AG 2,675 892,186
Allianz AG New 82 27,122
Basf AG 3,950 187,814
Bayer AG 9,750 504,949
Bayer Motoren Werke AG 250 252,987
Commerzbank AG 2,150 81,901
Continental AG 7,000 220,078
Daimler Benz AG 3,750 369,084
Deutsche Bank AG 6,650 562,694
Deutsche Telekom AG 27,100 742,322
Dresdner Bank AG 8,100 437,911
Hochtief AG 2,400 115,246
Hoechst AG 3,200 161,025
Man AG 500 195,181
Mannesmann AG 4,200 432,005
Metro AG 5,322 321,660
Muenchener Rueckvers AG 1,350 670,715
Preussag AG 750 268,652
RWE AG 4,700 278,333
Schering AG 2,500 294,574
Siemens AG 8,050 491,673
Thyssen AG 950 241,787
Veba AG 5,600 376,811
Volkswagen AG 500 483,240
-----------
8,609,950
</TABLE>
105
<PAGE> 122
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.62%
Cheung Kong Holdings 21,000 $ 103,265
Citic Pacific Ltd. 11,000 19,450
CLP Holdings 12,000 54,672
Hang Seng Bank 9,000 50,878
Hong Kong & China Gas 57,200 64,967
Hong Kong & China Gas (Wts) 2,600 178
Hong Kong Telecommunications 25,600 48,074
Hutchison Whampoa 24,000 126,691
Johnson Elec Holdings 12,000 44,450
South China Morning Post 20,000 9,615
Sun Hung Kai Properties 10,000 42,463
-----------
564,703
IRELAND -- 0.32%
Smurfit (Jefferson) Group 97,000 289,910
ITALY -- 3.36%
Assic Generali 11,694 380,421
Credito Italiano 49,000 256,617
Danieli Di Risp 19,000 88,223
ENI (ADR) 3,300 214,500
ENI ORD 79,000 517,996
IMI 12,900 203,293
Instituto Bancario San Paolo Di
Torino 12,000 173,238
Montedison SPA 166,580 206,731
Parmalat Finanz 60,000 122,415
Rinascente (LA) 15,000 149,430
Telecom Italia Mobile Di Risp 33,000 111,439
Telecom Italia SPA 40,777 300,305
Telecom Italia SPA-RNC 11 53
TIM 56,000 342,603
-----------
3,067,264
JAPAN -- 15.78%
Amada Company 31,000 151,334
Bank of Tokyo/Mitsubishi 28,000 297,476
Canon Inc. 25,000 569,538
Canon Sales Company Inc. 10,000 136,400
Citizen Watch Company 29,000 240,146
Dai Nippon Printing 28,000 448,543
Daiichi Pharmaceutical 25,000 330,874
Daikin Kogyo 31,000 200,434
Daiwa House Industries Company 16,000 141,752
Denso Corporation 24,000 399,219
Fanuc Company 12,800 444,348
Fuji Photo Film Company 5,000 174,658
Fujitsu 18,000 190,063
Hitachi 61,000 399,255
Honda Motor Company 12,000 428,726
Hoya Corporation 7,000 198,959
Inax Corporation 22,000 75,895
Ito Yokado Company 12,000 566,717
Kaneka Corporation 31,000 163,665
Keio Teito Electric Rail 35,000 127,830
Kintetsu 36,000 169,234
Kirin Brewery Company 36,000 341,072
Kokuyo Company 10,000 169,957
Kuraray Company Ltd. 37,000 315,491
Kyocera Corporation 4,100 201,042
Marui Company 16,000 239,531
Matsushita Electric Ind 34,000 548,347
NGK Insulators 50,000 435,742
Nintendo 3,100 288,096
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
Nippon Meat Packer 20,000 $ 245,751
Nippon Steel Corporation 25,000 44,117
Okumura 36,000 126,795
Omron Corporation 9,000 137,991
Osaka Gas Corporation 59,000 151,906
Sankyo Pharmaceutical Company 22,000 502,784
Secom Company 7,000 405,511
Sega Enterprises 4,000 69,285
Seino Transport 21,000 116,945
Sekisui House 28,000 217,690
Shin Etsu Chemical Company 6,000 104,144
Sony Corporation 6,700 579,048
Sumitomo Chemical Industries 36,000 111,434
Sumitomo Electric Industries 25,000 253,670
Takeda Chemical Industries 19,000 507,051
TDK Corporation 5,000 370,652
Tokio Marine & Fire 28,000 288,768
Tokyo Electric Power 7,900 155,406
Tonen Corporation 22,000 114,399
Toray Industries Inc. 78,000 406,162
Toshiba Corporation 72,000 295,248
Toyo Suisan Kaisha 17,000 104,014
Toyota Motor Corporation 21,000 545,238
Yamato Transport 4,000 44,985
Yamazaki Baking Company 15,000 133,435
-----------
14,426,773
MALAYSIA -- 0.36%
Berjaya Sports 16,000 23,709
Kuala Lumpur Kepong 24,000 38,745
Malayan Banking Berhad 9,000 9,064
Malaysia International Shipping 10,000 14,577
Nestle Malaysia Berhad 5,000 22,649
Petronas Gas Berhad 15,000 27,830
Public Bank Berhad Foreign 15,800 4,759
Resorts World Berhad 20,000 21,975
Rothmans of Pall Mall 7,000 48,491
Sime Darby Berhad 5,000 3,446
Tanjong PLC 9,000 12,469
Telekom Malaysia 21,500 36,263
Tenaga Nasional 22,000 26,504
UMW Holdings Berhad 10,000 4,482
YTL Corporation Berhad 36,000 27,063
YTL Power International 13,800 7,515
-----------
329,541
NETHERLANDS -- 4.69%
ABN Amro Holdings NV 14,900 348,907
Akzo Nobel NV 550 122,351
Elsevier NV 14,900 225,030
Heineken NV 6,250 245,665
Hoogovens & Staalf 1,615 69,915
ING Group NV 8,599 563,467
KLM 2,834 115,158
Kon Kpn NV 7,346 282,962
Philips Electronics 4,500 378,551
Polygram 2,300 117,447
Royal Dutch Petroleum 20,100 1,115,376
TNT Post Group NV 7,346 187,919
Unilever NV CVA 6,480 514,511
-----------
4,287,259
</TABLE>
106
<PAGE> 123
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
NEW ZEALAND -- 2.94%
Brierley Investment NPV 706,200 $ 352,772
Carter Holt Harvey NPV 244,800 214,001
Fletcher Challenge Building
Division NPV 80,850 100,969
Fletcher Challenge Energy
Division NPV 89,150 213,390
Fletcher Challenge Forest
Division NPV 129,558 72,809
Fletcher Challenge Paper Division
NPV 160,600 178,836
Lion Nathan Ltd. 78,900 175,718
Telecom Corporation of New
Zealand 318,100 1,314,256
Telecom Corporation of New
Zealand (ADR) 2,000 65,500
-----------
2,688,251
NORWAY -- 0.25%
Norsk Hydro As 4,400 193,750
Norske Skogsindust 1,100 34,014
-----------
227,764
SINGAPORE -- 1.13%
City Developments 17,000 47,620
Creative Technology 2,000 24,332
DBS Lands 38,000 31,573
Elec & Eltek International 4,400 14,872
Foreign Reg Bank Singapore 8,700 48,276
Fraser & Neave 7,000 18,861
Keppel Corporation 22,000 33,163
Keppel Lund 21,000 19,317
Overseas Chinese Bank 22,600 77,122
Rothmans Inds 7,000 31,157
Singapore Airlines 25,000 117,211
Singapore Press Hd 19,932 133,669
Singapore Tech Eng 25,000 17,656
Singapore Telecom 176,000 250,682
United Overseas Bank 49,000 152,671
Venture Manufacturing 9,000 17,092
-----------
1,035,274
SWEDEN -- 2.93%
ABB AB 12,800 181,344
Astra AB 13,200 269,759
Electrolux AB 6,000 103,059
Ericsson Lm Tel 18,700 546,276
Investor AB 5,300 309,322
Nordbanken Holding 41,700 305,849
Skandia Forsakring 12,100 172,944
Skanska AB 3,800 170,562
Svenska Handelsbanken 4,200 194,834
Swedish Match 45,300 150,508
Volvo AB 9,200 273,947
-----------
2,678,404
SWITZERLAND -- 6.40%
ABB AG Series A 183 270,699
Credit Suisse Group 4,677 1,042,388
Holderbank Financiere Glarus AG 167 212,844
Julius Baer Holdings 77 241,277
Nestle SA 373 799,550
Novartis AG 799 1,331,755
Roche Holdings AG 94 924,605
Sairgroup 490 161,467
Saurer AG 170 174,008
Schweizerische Rueckversicherungs 219 554,767
Sulzer AG 175 138,331
-----------
5,851,691
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM -- 22.35%
Abbey National 19,000 $ 337,864
Barclays PLC 24,000 692,458
Bass 10,267 192,514
BAT Industries 97,200 973,769
BG 7,000 40,585
Billiton PLC 112,000 227,213
BOC Group 12,000 163,597
Booker PLC 49,000 202,084
British Petroleum 74,929 1,093,452
British Sky Broadcasting 33,000 237,206
British Steel 216,000 475,163
British Telecom 77,000 951,395
BTR PLC 30,875 87,638
Cable & Wireless 19,000 230,953
Cadbury Schweppes 26,000 402,648
Charter 36,357 380,015
Coats Viyella PLC 202,900 249,005
Diageo PLC 35,942 426,088
FKI PLC 111,500 324,869
General Electric Company 65,900 568,322
Glaxo Wellcome 44,700 1,342,694
Greenalls Group 36,000 311,967
Hanson PLC 41,650 253,310
Hillsdown Holdings 99,000 269,440
House of Fraser PLC 109,000 316,675
HSBC Holdings 24,500 622,205
Inchcape 52,000 164,098
Legal & General 13,500 144,149
Lloyds TSB Group PLC 71,264 997,727
Marks & Spencer 94,000 856,172
Mirror Group 95,000 358,485
National Westminster Bank 15,700 280,755
Peninsular and Oriental Steam 35,500 511,538
Prudential Corporation 13,000 171,370
Reckitt & Colman 10,700 204,385
Reed International 43,000 389,140
Reuters Group 10,200 116,662
Rio Tinto Corporation 26,100 294,159
RJB Mining 65,000 132,407
Royal Sun Alliance Insurance 26,738 276,572
Scottish Hydro 29,400 261,155
Sears 137,000 123,341
Sedgwick Group 86,000 186,673
Smithkline Beecham 72,000 879,398
Tate & Lyle PLC 49,000 388,827
TESCO 37,000 361,407
Thames Water 26,000 473,627
Unilever 55,200 588,028
United News & Media PLC 19,000 265,850
Vodafone Group 30,570 388,180
Williams Holdings 33,000 212,135
Willis Corroon Group 14,000 35,531
-----------
20,434,900
-----------
TOTAL COMMON STOCKS AND WARRANTS
(IDENTIFIED COST $75,751,127) 85,200,592
- ----------------------------------------------------------------------
</TABLE>
107
<PAGE> 124
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCK -- 0.43%
- ----------------------------------------------------------------------
AUSTRALIA -- 0.20%
News Corporation 25,687 $ 182,413
ITALY -- 0.23%
Fiat SPA 86,600 215,677
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $239,405) 398,090
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 5.87%
- ----------------------------------------------------------------------
CSW Credit Inc. 5.53% due
08/03/98 $1,000,000 994,931
General Motors Acceptance
Corporation, 5.52% due 07/09/98 1,000,000 998,773
Northern In Public Service
Company, 5.55% due 07/10/98 500,000 499,306
Shell Finance Yrs 1&2
5.60% due 07/23/98 1,000,000 996,578
US West Communications Group
Inc., 6.10% due 07/01/98 1,875,000 1,875,000
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $5,364,588) 5,364,588
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $81,355,120) $90,963,270
OTHER ASSETS LESS LIABILITIES -- 0.49% 446,656
-----------
NET ASSETS 100% $91,409,926
======================================================================
(a) Non-income producing security.
(Rts) Rights.
(Wts) Warrants.
ADR American Depository Receipt.
</TABLE>
See accompanying notes to financial statements.
108
<PAGE> 125
HIGH-YIELD BOND PORTFOLIO
CAYWOOD-SCHOLL CAPITAL MANAGEMENT
SAN DIEGO, CALIFORNIA
The objective of Enterprise Accumulation Trust High-Yield Bond Portfolio is
to seek maximum current income, primarily from debt securities that are rated Ba
or lower by Moody's Investors Service or BB or lower by Standard & Poor's.
The high-yield market began 1998 with solid underlying fundamentals, a
strong economy, and ample financial liquidity. Each of these factors mitigated
credit risk that has aided the overall demand for the high-yield market.
Year-to-date, high-yield companies have issued $104.2 billion in new
securities, a 95 percent increase over 1997's first-half issuance. To place this
number into context, the total new issuance for each of the past three years
(1995-1997) was $47.2 billion, $73.6 billion, and $126.0 billion, respectively.
Media and telecommunications were the leading sectors of new issuance early in
the period, and the average deal size was slightly more than $200 million.
Defaults continued to trend below their historic averages. The strong results
for the first quarter mitigated the second quarter's lackluster performance,
placing the portfolio's year-to-date performance in line with most market
indices. Two factors had an increasingly negative influence on performance:
supply and volatility in emerging markets and U.S. stocks. The primary drag on
high-yield performance was caused by market oversupply. The pace of issuance has
caused the risk premium in the market to widen as issuers compete for investor
favor. The widening premiums kept high-yield bonds from participating in the
rally of U.S. Treasuries.
The other variable restraining the performance of the high-yield market was
the volatility of foreign securities and domestic equities. The increase in
volatility is the manifestation of investors' concern over future cash flows and
earnings from companies competing in a global economy. The higher degree of
investor uncertainty should produce lower enterprise valuations and reduced
financial liquidity. Fortunately, neither of these outcomes is evident at
present, but investors are concerned.
During the first half of 1998, the portfolio emphasized telecommunications,
health care, Yankees (bonds issued in the U.S. by non-U.S. entities), and media
sectors. With the exception of Yankees, these industries outperformed the market
while experiencing an unusual degree of volatility.
During the past two months, Caywood-Scholl has been slowly upgrading credit
quality, adding to positions such as American Standard, Fred Meyer, Niagara
Mohawk Power, Owens Illinois, and Westpoint Stevens. Caywood-Scholl finds the
10-year non-call securities of these double B issuers attractive at this time
due to Caywood-Scholl's favorable outlook on interest rates, superior credit
statistics that offer greater protection against an economic slowdown, and an
incremental risk premium for certain lower-quality credits that is too small
given the higher degree of market volatility.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
109
<PAGE> 126
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
CORPORATE BONDS, CONVERTIBLE SECURITIES & COMMON STOCKS -- 84.27%
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 1.00%
B E Aerospace
8.00% due 03/01/08 $ 550,000 $ 548,625
Coltec Inds Inc. 7.50% due
04/15/08 350,000 353,500
-----------
902,125
AUTOMOTIVE -- 0.38%
United Auto Group Inc. 11.00% due
07/15/07 350,000 342,125
BANKING -- 2.39%
Bay View Capital Corporation
9.125% due 08/15/07 650,000 667,875
DVI Inc. 9.875% due 02/01/04 200,000 212,000
Imperial Credit Industries Inc.
9.875% due 01/15/07 550,000 550,000
Western Financial Savings Bank
Orange California, 8.50% due
07/01/03 750,000 717,188
-----------
2,147,063
BROADCASTING -- 5.48%
Allbritton Communications
Company, 8.875% due 02/01/08 700,000 756,000
Chancellor Radio Broadcasting
8.125% due 12/15/07 750,000 760,313
Fox/Liberty Networks LLC Zero
Coupon due 08/15/07 1,450,000 1,009,562
Fox Family Worldwide Inc. Zero
Coupon due 11/01/07 750,000 483,750
Fox Family Worldwide Inc. 9.25%
due 11/01/07 600,000 597,000
Rogers Communications Inc. 8.875%
due 07/15/07 500,000 501,250
Rogers Communications Inc. 9.125%
due 01/15/06 200,000 202,500
Sinclair Broadcast Group Inc.
8.75% due 12/15/07 600,000 612,000
-----------
4,922,375
BUILDING & CONSTRUCTION -- 3.55%
American Standard Inc.
7.375% due 02/01/08 1,600,000 1,572,000
Building Materials Corporation
America, 8.00% due 10/15/07 400,000 400,000
International Comfort Products
8.625% due 05/15/08 500,000 497,500
Nortek Inc. 9.125% due 09/01/07 700,000 714,000
-----------
3,183,500
BUSINESS SERVICES -- 0.86%
Cex Holdings Inc. 9.625% due
06/01/08 750,000 768,750
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
CABLE -- 4.05%
Adelphia Communications
Corporation, 9.25% due 10/01/02 $ 100,000 $ 103,500
Adelphia Communications
Corporation, 10.50% due
07/15/04 850,000 928,625
Century Communications
Corporation, Zero Coupon due
01/15/08 850,000 384,625
Century Communications
Corporation, 9.50% due 03/01/05 400,000 433,000
CSC Holdings Inc. 7.875% due
12/15/07 350,000 367,472
Lenfest Communications Inc.
7.625% due 02/15/08 300,000 306,000
Medicom LLC/Mediacom Capital
Corporation, 8.50% due 04/15/08 400,000 399,000
TCI Satellite Entertainment Inc.
Zero Coupon due 02/15/07 1,050,000 711,375
-----------
3,633,597
CHEMICALS -- 2.16%
General Chemical Corporation
9.25% due 08/15/03 250,000 257,813
Huntsman Polymers Corporation
11.75% due 12/01/04 250,000 275,937
PCI Chemicals Canada Inc 9.25%
due 10/15/07 350,000 340,375
Pharmaceutical Fine Chemicals
9.75% due 11/15/07 550,000 621,500
Pioneer Amers Acquisition
Corporation, 9.25% due 06/15/07 450,000 442,125
-----------
1,937,750
COMMUNICATIONS -- 6.65%
Globalstar L P
11.375% due 02/15/04 850,000 824,500
Globalstar L P/Globalstar
Capital, 10.75% due 11/01/04 150,000 143,625
Globalstar L P/Globalstar
Corporation, 11.50% due
06/01/05 $ 250,000 243,437
Globalstar Telecommunications
(Wts) (a) 450 36,000
Intermedia Communications Inc.
8.50% due 01/15/08 $ 400,000 400,000
Iridium Capital Corporation
13.00% due 07/15/05 600,000 642,000
Iridium Capital Corporation
14.00% due 07/15/05 $ 800,000 890,000
Iridium World Communications
(Wts) (a) 450 83,588
Level 3 Commerce Inc. 9.125% due
05/01/08 $1,050,000 1,021,125
Loral Orion Network Systems Inc.
(Wts) (a) 600 8,550
Orion Network Systems Inc. 12.50%
due 01/15/07 $1,100,000 864,875
Pathinet Inc. 12.25% due 04/15/08 250,000 271,250
Qwest Communications
International Inc.,
Zero Coupon due 02/01/08 750,000 544,687
-----------
5,973,637
</TABLE>
110
<PAGE> 127
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
CONSUMER PRODUCTS -- 4.41%
Boyds Collection Ltd. 9.00% due
05/15/08 $ 300,000 $ 300,000
Chattem Inc. 8.875% due 04/01/08 750,000 746,250
Corning Consumer Products
Company, 9.625% due 05/01/08 500,000 496,250
French Fragrances Inc. 10.375%
due 05/15/07 350,000 373,625
Herff Jones Inc. 11.00% due
08/15/05 350,000 385,438
Revlon Consumer Products
Corporation, 8.625% due
02/01/08 350,000 350,875
Samsonite Corporation New 10.75%
due 06/15/08 550,000 545,875
Sealy Mattress Company Zero
Coupon due 12/15/07 1,150,000 763,312
-----------
3,961,625
CONTAINERS/PACKAGING -- 4.34%
Buckeye Cellulose Corporation
8.50% due 12/15/05 450,000 460,125
Huntsman Packaging Corporation
9.125% due 10/01/07 600,000 597,000
Owens Illinois Inc. 7.35% due
05/15/08 550,000 553,151
Owens Illinois Inc. 8.10% due
05/15/07 550,000 582,428
Plastic Containers Inc. 10.00%
due 12/15/06 100,000 107,500
Printpack Inc. 9.875% due
08/15/04 500,000 534,375
Printpack Inc. 10.625% due
08/15/06 250,000 267,812
Stone Container Corporation
10.75% due 10/01/02 200,000 212,500
United States Can Corporation
10.125% due 10/15/06 550,000 580,938
-----------
3,895,829
CRUDE & PETROLEUM -- 1.25%
Clark Refining & Marketing Inc.
8.875% due 11/15/07 250,000 251,250
Clark USA Inc. 10.875% due
12/01/05 800,000 872,000
-----------
1,123,250
ELECTRONICS -- 0.56%
Axiohm Transaction Solutions
9.75% due 10/01/07 500,000 503,750
ENERGY -- 0.84%
Chesapeake Energy Corporation
9.125% due 04/15/06 150,000 146,625
Nuevo Energy Company 8.875% due
06/01/08 600,000 609,000
-----------
755,625
ENTERTAINMENT & LEISURE -- 1.50%
AMF Bowling Inc. Zero Coupon due
05/12/18 1,600,000 404,000
AMF Group Inc. 10.875% due
03/15/06 650,000 706,875
Premier Parks Inc. Zero Coupon
due 04/01/08 350,000 232,313
-----------
1,343,188
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
FOOD & BEVERAGES & TOBACCO -- 1.92%
NBTY Inc. 8.625% due 09/15/07 $ 800,000 $ 820,000
Purina Mills Inc. 9.00% due
03/15/10 600,000 616,500
Twin Laboratories Inc. 10.25% due
05/15/06 260,000 287,300
-----------
1,723,800
GAMING -- 1.04%
Empress Entertainment Inc. 8.125%
due 07/01/06 400,000 401,000
Trump Atlantic City Associates
11.25% due 05/01/06 550,000 534,875
-----------
935,875
HEALTH CARE -- 4.74%
Dade International Inc. 11.125%
due 05/01/06 350,000 395,500
Fisher Scientific International
Inc., 9.00% due 02/01/08 850,000 843,625
Magellan Health Services Inc.
9.00% due 02/15/08 400,000 396,000
Mariner Health Group Inc. 9.50%
due 04/01/06 200,000 212,000
Maxxim Medical Inc. 10.50% due
08/01/06 650,000 715,000
Mediq Inc. 7.50% due 07/15/03 425,000 425,000
Quest Diagnostics Inc. 10.75% due
12/15/06 600,000 669,000
Tenet Healthcare Corporation
8.125% due 12/01/08 300,000 301,620
Vencor Inc. 9.875% due 05/01/05 300,000 294,750
-----------
4,252,495
HOTELS & RESTAURANTS -- 3.11%
AFC Enterprises Inc. 10.25% due
05/15/07 550,000 584,375
Apple South Inc. 9.75% due
06/01/06 150,000 160,500
Felcor Suites Ltd. Partnership
7.625% due 10/01/07 250,000 247,780
Foodmaker Corporation 9.75% due
11/01/03 250,000 263,125
Foodmaker Inc. 8.375% due
04/15/08 700,000 698,250
Hammon John Q. Hotels 8.875% due
02/15/04 250,000 251,875
Perkins Family Restaurant L P
10.125% due 12/15/07 550,000 583,000
-----------
2,788,905
MACHINERY -- 0.88%
Columbus McKinnon Corporation New
York, 8.50% due 04/01/08 500,000 492,500
Navistar International
Corporation, 8.00% due 02/01/08 300,000 301,500
-----------
794,000
</TABLE>
111
<PAGE> 128
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
MEDICAL SERVICES -- 3.13%
Columbia HCA Healthcare
Corporation, 7.00% due 07/01/07 $ 500,000 $ 483,550
Hudson Respiratory Care Inc.
9.125% due 04/15/08 350,000 347,812
Pharmerica Inc. 8.375% due
04/01/08 550,000 547,250
PHP Healthcare Corporation 6.50%
due 12/15/02 550,000 302,500
Rural/Metro Corporation 7.875%
due 03/15/08 750,000 721,875
Tenet Healthcare Corporation
6.00% due 12/01/05 450,000 410,625
-----------
2,813,612
METALS & MINING -- 2.36%
AK Steel Corporation 9.125% due
12/15/06 450,000 470,250
Kaiser Aluminum & Chemical
Corporation, 10.875% due
10/15/06 250,000 268,750
Metals USA Inc. 8.625% due
02/15/08 250,000 240,000
Oregon Steel Mills Inc. 11.00%
due 06/15/03 250,000 267,500
WCI Steel Inc. 10.00% due
12/01/04 700,000 715,750
WHX Corporation 10.50% due
04/15/05 $ 150,000 152,625
-----------
2,114,875
PAGING SERVICES -- 0.01%
Pagemart Nationwide Inc. 875 8,750
PAPER & FOREST PRODUCTS -- 0.67%
Maxxam Group Inc. 11.25% due
08/01/03 $ 200,000 211,500
SD Warren Company 12.00% due
12/15/04 350,000 388,938
-----------
600,438
PRINTING & PUBLISHING -- 0.95%
Nebraska Book Company 8.75% due
02/15/08 500,000 481,875
Von Hoffmann Press Inc. 10.375%
due 05/15/07 350,000 374,938
-----------
856,813
REAL ESTATE -- 0.69%
Crown Castle International
Corporation, Zero Coupon due
11/15/07 900,000 615,375
RETAIL -- 4.69%
Ann Taylor Inc. 8.75% due
06/15/00 200,000 200,750
Charming Shoppes Inc. 7.50% due
07/15/06 350,000 336,000
Cole National Group Inc. 8.625%
due 08/15/07 850,000 871,250
Jitney Jungle Stores America
Inc., 10.375% due 09/15/07 500,000 533,750
Meyer Fred Inc. 7.45% due
03/01/08 1,150,000 1,154,013
Randalls Food Markets Inc. 9.375%
due 07/01/07 1,050,000 1,113,000
-----------
4,208,763
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 14.10%
21St Century Telecom Group Inc.
Zero Coupon due 02/15/08 $ 850,000 $ 479,188
CCPR Services Inc. 10.00% due
02/01/07 650,000 655,687
Comcast Cellular Holdings Inc.
9.50% due 05/01/07 1,400,000 1,461,250
E. Spire Communications Inc. Zero
Coupon due 11/01/05 $ 800,000 678,000
E. Spire Communications Inc.
(Wts) (a) 300 51,300
Firstworld Communications Inc.
Zero Coupon due 04/15/08 $ 300,000 141,000
Flag Ltd. 8.25% due 01/30/08 250,000 252,188
ICG Holdings Inc. Zero Coupon due
05/01/06 900,000 724,500
ICG Services Inc. Zero Coupon due
02/15/08 $ 250,000 152,188
Intermedia Communications Inc. 186 7,800
McLeodUSA Inc. Zero Coupon due
03/01/07 $ 650,000 484,250
Metronet Communications
Corporation, Zero Coupon due
11/01/07 1,250,000 794,687
Metronet Communications
Corporation, 12.00% due
08/15/07 $ 100,000 115,750
Metronet Communications
Corporation (Wts) (a) 100 5,050
Nextel Communications Inc. Zero
Coupon due 09/15/07 $1,300,000 879,125
Nextel Communications Inc. Zero
Coupon due 10/31/07 900,000 581,625
Nextlink Communications Inc.
9.45% due 04/15/08 1,200,000 736,500
RCN Corporation Zero Coupon due
10/15/07 1,550,000 969,062
Rogers Cantel Inc. 8.80% due
10/01/07 850,000 839,375
Sprint Spectrum L P Zero Coupon
due 08/15/06 2,000,000 1,710,000
Teligent Inc. Zero Coupon due
03/01/08 200,000 110,250
Winstar Communications Inc.
10.00% due 03/15/08 500,000 496,250
Winstar Equipment Corporation
12.50% due 03/15/04 300,000 338,250
-----------
12,663,275
TEXTILES -- 3.45%
Phillips Van Heusen Corporation
9.50% due 05/01/08 900,000 901,125
Pillowtex Corporation 9.00% due
12/15/07 350,000 359,625
Polymer Group Inc. 9.00% due
07/01/07 500,000 508,750
Westpoint Stevens Inc. 7.875% due
06/15/08 800,000 798,000
William Carter Company Acquired
10.375% due 12/01/06 500,000 535,000
-----------
3,102,500
TRANSPORTATION -- 0.90%
Eletson Holdings Inc. 9.25% due
11/15/03 300,000 308,250
TBS Shipping International Ltd.
10.00% due 05/01/05 550,000 501,875
-----------
810,125
</TABLE>
112
<PAGE> 129
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 2.09%
Calenergy Inc. 7.63% due 10/15/07 $ 100,000 $ 100,989
Ferrellgas Partners L P 9.375%
due 06/15/06 300,000 319,125
Midland Funding Corporation
10.33% due 07/23/02 116,462 125,197
Niagara Mohawk Power Corporation
7.75% due 10/01/08 1,300,000 1,332,500
-----------
1,877,811
WASTE MANAGEMENT -- 0.12%
Allied Waste N A Inc. 10.25% due
12/01/06 100,000 110,125
-----------
TOTAL CORPORATE BONDS, CONVERTIBLE SECURITIES & COMMON
STOCKS
(IDENTIFIED COST $74,014,798) 75,671,726
- ----------------------------------------------------------------------
FOREIGN BONDS -- 7.59%
- ----------------------------------------------------------------------
APPAREL & TEXTILES -- 0.27%
Reliance Industries Ltd. 8.25%
due 01/15/27 250,000 240,505
BASIC INDUSTRIES -- 0.83%
Cemex S A 12.75% due 07/15/06 650,000 744,802
BROADCASTING -- 1.62%
Grupo Televisa S A 11.375% due
05/15/03 400,000 430,548
Grupo Televisa S A De C V 11.875%
due 05/15/06 300,000 390,488
Satelites Mexicanos S A De C V
10.125% due 11/01/04 650,000 635,550
-----------
1,456,586
CABLE -- 0.39%
Kabelmedia Holding Zero Coupon
due 08/01/06 450,000 348,188
CAPITAL GOODS & SERVICES -- 0.43%
Cemex International Capital Inc.
9.66% due 12/29/49 400,000 386,000
CONTAINERS/PACKAGING -- 0.46%
Viacap SA De C V 11.375% due
05/15/07 400,000 409,248
ENERGY -- 0.60%
Petroleos Mexicanos 8.85% due
09/15/07 250,000 246,073
Petroleos Mexicanos 9.00% due
06/01/07 300,000 297,507
-----------
543,580
GOVERNMENT BOND -- 1.90%
Argentina Rep Global 11.00% due
10/09/06 500,000 530,370
Korea Rep 8.875% due 04/15/08 300,000 271,164
Russian Federation 10.00% due
06/26/07 200,000 151,500
Turkiye Cumhuriyeti 10.00% due
09/19/07 200,000 198,872
United Mexican States 8.625% due
03/12/08 250,000 241,547
United Mexican States 9.875% due
01/15/07 300,000 310,788
-----------
1,704,241
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
DESCRIPTION PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
METALS & MINING -- 0.10%
Hylsa SA De CV 9.25% due 09/15/07 $ 100,000 $ 94,000
PAPER & FOREST PRODUCTS -- 0.52%
Indah Kiat Finance Mauritius
Ltd., 10.00% due 07/01/07 250,000 176,875
Indah Kiat International Finance
Co., 11.875% due 06/15/02 100,000 81,881
Pindo Deli Finance Mauritius
Ltd., 10.75% due 10/01/07 300,000 207,750
-----------
466,506
TRANSPORTATION -- 0.47%
TFM S A De C V 10.25% due
06/15/07 150,000 144,824
Transportacion Maritima 10.00%
due 11/15/06 300,000 279,783
-----------
424,607
-----------
TOTAL FOREIGN BONDS
(IDENTIFIED COST $7,056,420) 6,818,263
- ----------------------------------------------------------------------
U.S. TREASURY NOTES AND BONDS -- 3.37%
- ----------------------------------------------------------------------
U.S. Treasury Bond 6.375% due
08/15/27 250,000 274,805
U.S. Treasury Note 5.50% due
05/31/03 2,250,000 2,247,698
U.S. Treasury Note 5.625% due
05/15/08 $ 500,000 506,640
-----------
3,029,143
-----------
TOTAL U.S. TREASURY NOTES AND BONDS
(IDENTIFIED COST $2,999,473) 3,029,143
- ----------------------------------------------------------------------
PREFERRED STOCK -- 0.29%
- ----------------------------------------------------------------------
DRUGS & MEDICAL PRODUCTS -- 0.29%
Fresenius Med Care Capital Trust 250 261,875
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $263,906) 261,875
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.41%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.00% due
07/01/98 Collateral: U.S.
Treasury Bond $1,955,000,
12.50% due 08/15/14 Value
$3,125,357 $3,060,000 3,060,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $3,060,000) 3,060,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $87,394,597) $88,841,007
OTHER ASSETS LESS LIABILITIES -- 1.07% 956,545
-----------
NET ASSETS 100% $89,797,552
======================================================================
</TABLE>
(a) Non-income producing security.
(Wts) Warrants.
See accompanying notes to financial statements.
113
<PAGE> 130
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL HIGH-YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value..................... $620,875,376 $467,684,895 $3,075,835,481 $90,963,270 $88,841,007
Foreign currency at value
(cost -- $1,379,698).................... -- -- -- 1,373,551 --
Cash and other............................ 2,900 3,302 (12,762) (5,748) 4,523
Receivable for investments sold........... -- 1,497,089 18,528,113 1,093,385 --
Receivable for fund shares sold........... 662,798 840,796 2,008,987 147,791 192,925
Dividends receivable...................... 774,748 153,553 1,875,110 366,195 --
Interest receivable....................... 2,782 945 342,945 -- 1,614,072
------------ ------------ -------------- ----------- -----------
Total assets.................... 622,318,604 470,180,580 3,098,577,874 93,938,444 90,652,527
------------ ------------ -------------- ----------- -----------
LIABILITIES:
Payable for investments purchased......... -- 11,548,612 47,069,257 1,766,540 718,112
Payable for fund shares redeemed.......... 283,214 134,387 803,406 17,489 68,799
Investment advisory fee payable........... 392,441 287,503 1,779,866 62,823 43,395
Forward currency contracts (net),
payable................................. -- -- -- 607,177 --
Other accrued expenses.................... 98,018 62,018 362,669 74,489 24,669
------------ ------------ -------------- ----------- -----------
Total liabilities............... 773,673 12,032,520 50,015,198 2,528,518 854,975
------------ ------------ -------------- ----------- -----------
NET ASSETS:
Accumulated paid-in capital............... 392,778,380 310,301,506 1,708,568,032 75,621,299 86,054,202
Accumulated undistributed net investment
income.................................. 10,585,271 1,622,518 55,561,693 1,714,862 --
Accumulated undistributed net realized
gain on investments..................... 52,719,985 34,624,341 425,048,141 5,085,782 2,296,940
Net unrealized appreciation on investments
and translation of foreign currencies
denominated amounts..................... 165,461,295 111,599,695 859,384,810 8,987,983 1,446,410
------------ ------------ -------------- ----------- -----------
Total net assets................ $621,544,931 $458,148,060 $3,048,562,676 $91,409,926 $89,797,552
============ ============ ============== =========== ===========
Fund shares outstanding................... 15,817,508 14,989,812 66,772,765 13,045,598 15,595,387
------------ ------------ -------------- ----------- -----------
Net asset value per share................. $39.29 $30.56 $45.66 $7.01 $5.76
============ ============= ============== ============= ===========
INVESTMENTS AT COST....................... $455,414,081 $356,085,200 $2,216,450,671 $81,355,120 $87,394,597
</TABLE>
See accompanying notes to financial statements.
114
<PAGE> 131
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1998
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL HIGH-YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................. $ 4,346,813* $ 1,446,909 $ 28,315,433 $ 1,146,369* $ 11,250
Interest.............................. 2,714,206 883,465 11,510,507 124,888 3,336,633
----------- ----------- ------------ ----------- ----------
Total............................ 7,061,019 2,330,374 39,825,940 1,271,257 3,347,883
----------- ----------- ------------ ----------- ----------
OPERATING EXPENSES:
Investment advisory fee............... 2,259,799 1,646,965 10,427,250 363,131 238,409
Custodian and fund accounting fees.... 53,047 55,184 228,716 134,745 32,324
Reports and notices to shareholders... 37,515 34,494 139,200 3,952 6,360
Trustees' fees and expenses........... 11,114 9,651 30,159 8,028 7,793
Audit and legal fees.................. 6,960 4,156 37,797 1,157 964
Miscellaneous......................... 13,480 8,180 78,602 2,311 1,493
----------- ----------- ------------ ----------- ----------
Total operating expenses......... 2,381,915 1,758,630 10,941,724 513,324 287,343
----------- ----------- ------------ ----------- ----------
NET INVESTMENT INCOME.......... 4,679,104 571,744 28,884,216 757,933 3,060,540
----------- ----------- ------------ ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NET:
Net realized gain on security
transactions........................ 31,124,076 9,471,963 241,799,410 3,580,825 927,987
Net realized loss on foreign currency
transactions........................ -- -- -- (1,400,155) --
----------- ----------- ------------ ----------- ----------
Net realized gain on investments...... 31,124,076 9,471,963 241,799,410 2,180,670 927,987
Net change in unrealized gain (loss)
on investments and translation of
foreign currencies denominated
amounts............................. 27,942,672 44,792,488 50,664,251 7,362,562 (523,690)
----------- ----------- ------------ ----------- ----------
Net realized and unrealized gain
(loss) on investments.......... 59,066,748 54,264,451 292,463,661 9,543,232 404,297
----------- ----------- ------------ ----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $63,745,852 $54,836,195 $321,347,877 $10,301,165 $3,464,837
=========== =========== ============ =========== ==========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Net of foreign taxes withheld of $21,940 and $159,554, respectively.
115
<PAGE> 132
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL COMPANY VALUE PORTFOLIO
-------------------------------- --------------------------------
(UNAUDITED) YEAR ENDED (UNAUDITED) YEAR ENDED
SIX MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income..................... $ 4,679,104 $ 5,906,243 $ 571,744 $ 564,870
Net realized gain on investments.......... 31,124,076 21,596,989 9,471,963 25,509,856
Net realized loss on futures.............. -- -- -- --
Net change in unrealized gain on
investments............................ 27,942,672 66,581,351 44,792,488 68,857,605
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations...................... 63,745,852 94,084,583 54,836,195 94,932,331
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income..................... -- (4,530,879) -- (1,934,367)
Net realized gains........................ -- (12,619,248) -- (29,120,607)
------------ ------------ ------------ ------------
Total dividends and distributions
to shareholders................. -- (17,150,127) -- (31,054,974)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales................... 91,765,977 194,805,120 81,328,350 125,153,914
Reinvestment of dividends and
distributions.......................... -- 17,150,127 -- 31,054,974
Cost of shares redeemed................... (51,770,217) (85,993,316) (43,282,306) (47,524,243)
------------ ------------ ------------ ------------
Net increase in net assets from fund
share transactions................... 39,995,760 125,961,931 38,046,044 108,684,645
------------ ------------ ------------ ------------
Total increase in net assets...... 103,741,612 202,896,387 92,882,239 172,562,002
NET ASSETS:
Beginning of year......................... 517,803,319 314,906,932 365,265,821 192,703,819
------------ ------------ ------------ ------------
End of year............................... $621,544,931 $517,803,319 $458,148,060 $365,265,821
============ ============ ============ ============
SHARES ISSUED AND REDEEMED:
Issued.................................... 2,425,900 6,024,088 2,793,448 4,898,620
Issued in reinvestment of dividends and
distributions.......................... -- 488,747 -- 1,163,108
Redeemed.................................. (1,366,691) (2,666,560) (1,483,577) (1,911,458)
------------ ------------ ------------ ------------
Net increase........................... 1,059,209 3,846,275 1,309,871 4,150,270
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
116
<PAGE> 133
<TABLE>
<CAPTION>
MANAGED PORTFOLIO INTERNATIONAL GROWTH PORTFOLIO HIGH-YIELD BOND PORTFOLIO
--------------------------------- ------------------------------- -------------------------------
(UNAUDITED) YEAR ENDED (UNAUDITED) YEAR ENDED (UNAUDITED) YEAR ENDED
SIX MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997 JUNE 30, 1998 1997
---------------- -------------- ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C>
$ 28,884,216 $ 26,677,682 $ 757,933 $ 952,492 $ 3,060,540 $ 4,219,431
241,799,410 183,271,808 2,180,670 3,093,961 927,987 1,426,942
-- -- -- -- -- (40,672)
50,664,251 286,998,102 7,362,562 (1,712,233) (523,690) 876,263
-------------- -------------- ------------ ------------ ----------- -----------
321,347,877 496,947,592 10,301,165 2,334,220 3,464,837 6,481,964
-------------- -------------- ------------ ------------ ----------- -----------
-- (34,358,125) -- (469,566) (3,060,540) (4,578,453)
-- (86,729,089) -- (1,839,878) -- --
-------------- -------------- ------------ ------------ ----------- -----------
-- (121,087,214) -- (2,309,444) (3,060,540) (4,578,453)
-------------- -------------- ------------ ------------ ----------- -----------
298,017,716 764,890,598 16,485,982 44,114,615 24,388,916 37,450,856
-- 121,087,214 -- 2,309,444 3,060,540 4,578,453
(243,734,963) (524,249,625) (13,524,724) (21,069,633) (6,420,374) (9,979,756)
-------------- -------------- ------------ ------------ ----------- -----------
54,282,753 361,728,187 2,961,258 25,354,426 21,029,082 32,049,553
-------------- -------------- ------------ ------------ ----------- -----------
375,630,630 737,588,565 13,262,423 25,379,202 21,433,379 33,953,064
2,672,932,046 1,935,343,481 78,147,503 52,768,301 68,364,173 34,411,109
-------------- -------------- ------------ ------------ ----------- -----------
$3,048,562,676 $2,672,932,046 $ 91,409,926 $ 78,147,503 $89,797,552 $68,364,173
============== ============== ============ ============ =========== ===========
6,768,402 20,029,862 2,429,039 6,817,722 4,207,409 6,681,479
-- 2,969,279 -- 373,696 528,073 813,628
(5,538,290) (13,856,866) (2,030,155) (3,259,958) (1,107,006) (1,778,183)
-------------- -------------- ------------ ------------ ----------- -----------
1,230,112 9,142,275 398,884 3,931,460 3,628,476 5,716,924
============== ============== ============ ============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
117
<PAGE> 134
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------------------------------------------
JUNE 30, 1998 1997 1996 1995 1994 1993
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 35.09 $ 28.86 $ 23.35 $ 18.14 $ 17.95 $ 17.23
-------- -------- -------- -------- ------- -------
Income from investment operations:
Net investment income................. 0.27 0.30 0.37 0.33 0.28 0.18
Net realized and unrealized gain on
investments........................ 3.93 7.13 5.52 6.38 0.41 1.13
-------- -------- -------- -------- ------- -------
Total from investment
operations.................. 4.20 7.43 5.89 6.71 0.69 1.31
-------- -------- -------- -------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net
investment income.................. -- 0.32 0.09 0.49 0.18 0.17
Distribution to shareholders from net
capital gains...................... -- 0.88 0.29 1.01 0.32 0.42
-------- -------- -------- -------- ------- -------
Total dividends and
distributions............... -- 1.20 0.38 1.50 0.50 0.59
-------- -------- -------- -------- ------- -------
Net asset value, end of year............ $ 39.29 $ 35.09 $ 28.86 $ 23.35 $ 18.14 $ 17.95
======== ======== ======== ======== ======= =======
Total return.................. 11.97%B 25.76% 25.22% 38.44% 3.87% 7.85%
-------- -------- -------- -------- ------- -------
Net assets, end of year (000)........... $621,545 $517,803 $314,907 $167,963 $88,583 $66,172
-------- -------- -------- -------- ------- -------
Ratio of net operating expenses to
average net assets.................... 0.83%A 0.84% 0.81% 0.69% 0.67% 0.72%
-------- -------- -------- -------- ------- -------
Ratio of net operating expenses
(excluding waivers) to average net
assets................................ 0.83%A 0.84% 0.81% 0.72% 0.69% 0.72%
-------- -------- -------- -------- ------- -------
Ratio of net investment income to
average net assets.................... 1.62%A 1.42% 1.94% 1.94% 1.81% 1.47%
-------- -------- -------- -------- ------- -------
Ratio of net investment income
(excluding waivers) to average net
assets................................ 1.62%A 1.42% 1.94% 1.91% 1.79% 1.47%
-------- -------- -------- -------- ------- -------
Portfolio turnover...................... 32%A 17% 30% 29% 38% 15%
-------- -------- -------- -------- ------- -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
118
<PAGE> 135
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------------------------------
JUNE 30, 1998 1997 1996 1995 1994 1993
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 26.70 $ 20.22 $ 18.48 $ 17.56 $ 18.62 $ 16.72
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income................. 0.03 0.05 0.25 0.32 0.19 0.10
Net realized and unrealized gain
(loss) on investments.............. 3.83 8.91 1.82 1.75 (0.16) 2.98
-------- -------- -------- -------- -------- --------
Total from investment
operations.................. 3.86 8.96 2.07 2.07 0.03 3.08
-------- -------- -------- -------- -------- --------
Less dividends and distributions:
Dividends to shareholders from net
investment income.................. -- 0.15 0.12 0.40 0.10 0.10
Distribution to shareholders from net
capital gains...................... -- 2.33 0.21 0.75 0.99 1.08
-------- -------- -------- -------- -------- --------
Total dividends and
distributions............... -- 2.48 0.33 1.15 1.09 1.18
-------- -------- -------- -------- -------- --------
Net asset value, end of year............ $ 30.56 $ 26.70 $ 20.22 $ 18.48 $ 17.56 $ 18.62
======== ======== ======== ======== ======== ========
Total return.................. 14.46%B 44.32% 11.21% 12.28% 0.02% 19.51%
-------- -------- -------- -------- -------- --------
Net assets, end of year (000)........... $458,148 $365,266 $192,704 $166,061 $144,880 $105,635
-------- -------- -------- -------- -------- --------
Ratio of net operating expenses to
average net assets.................... 0.85%A 0.86% 0.84% 0.69% 0.66% 0.74%
-------- -------- -------- -------- -------- --------
Ratio of net operating expenses
(excluding waivers) to average net
assets................................ 0.85%A 0.86% 0.84% 0.72% 0.67% 0.74%
-------- -------- -------- -------- -------- --------
Ratio of net investment income to
average net assets.................... 0.28%A 0.21% 1.35% 1.86% 1.30% 1.06%
-------- -------- -------- -------- -------- --------
Ratio of net investment income
(excluding waivers) to average net
assets................................ 0.28%A 0.21% 1.35% 1.83% 1.29% 1.06%
-------- -------- -------- -------- -------- --------
Portfolio turnover...................... 36%A 58% 137% 70% 58% 70%
-------- -------- -------- -------- -------- --------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
119
<PAGE> 136
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------------------------------------------------
JUNE 30, 1998 1997 1996 1995 1994 1993
---------------- ---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................ $ 40.78 $ 34.31 $ 28.06 $ 20.82 $ 21.35 $ 20.11
---------- ---------- ---------- ---------- -------- --------
Income from investment operations:
Net investment income........... 0.43 0.35 0.59 0.40 0.40 0.46
Net realized and unrealized gain
on investments............... 4.45 8.06 5.99 8.97 0.15 1.55
---------- ---------- ---------- ---------- -------- --------
Total from investment
operations............ 4.88 8.41 6.58 9.37 0.55 2.01
---------- ---------- ---------- ---------- -------- --------
Less dividends and distributions:
Dividends to shareholders from
net investment income........ -- 0.55 0.06 0.75 0.46 0.24
Distribution to shareholders
from net capital gains....... -- 1.39 0.27 1.38 0.62 0.53
---------- ---------- ---------- ---------- -------- --------
Total dividends and
distributions......... -- 1.94 0.33 2.13 1.08 0.77
---------- ---------- ---------- ---------- -------- --------
Net asset value, end of year...... $ 45.66 $ 40.78 $ 34.31 $ 28.06 $ 20.82 $ 21.35
========== ========== ========== ========== ======== ========
Total return............ 11.97%B 24.50% 23.47% 46.89% 2.57% 10.39%
---------- ---------- ---------- ---------- -------- --------
Net assets, end of year (000)..... $3,048,563 $2,672,932 $1,935,343 $1,264,718 $689,252 $525,163
---------- ---------- ---------- ---------- -------- --------
Ratio of net operating expenses to
average net assets.............. 0.76%A 0.76% 0.74% 0.67% 0.64% 0.66%
---------- ---------- ---------- ---------- -------- --------
Ratio of net operating expenses
(excluding waivers) to average
net assets...................... 0.76%A 0.76% 0.74% 0.67% 0.64% 0.66%
---------- ---------- ---------- ---------- -------- --------
Ratio of net investment income to
average net assets.............. 2.00%A 1.14% 2.16% 1.80% 2.23% 3.21%
---------- ---------- ---------- ---------- -------- --------
Ratio of net investment income
(excluding waivers) to average
net assets...................... 2.00%A 1.14% 2.16% 1.80% 2.23% 3.21%
---------- ---------- ---------- ---------- -------- --------
Portfolio turnover................ 48%A 32% 29% 31% 33% 21%
---------- ---------- ---------- ---------- -------- --------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
120
<PAGE> 137
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31, PERIOD OF
SIX MONTHS ENDED ----------------------------- NOVEMBER 18, 1994-
JUNE 30, 1998 1997 1996 1995 DECEMBER 31, 1994
---------------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year... $ 6.18 $ 6.05 $ 5.39 $ 4.96 $ 5.00
------- ------- ------- ------- ------
Income from investment operations:
Net investment income.............. 0.06 0.06 0.05 0.04 --
Net realized and unrealized gain
(loss) on investments........... 0.77 0.26 0.63 0.67 (0.04)
------- ------- ------- ------- ------
Total from investment
operations............... 0.83 0.32 0.68 0.71 (0.04)
------- ------- ------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net
investment income............... -- 0.04 -- 0.04 --
Distribution to shareholders from
net capital gains............... -- 0.15 0.02 0.24 --
------- ------- ------- ------- ------
Total dividends and
distributions............ -- 0.19 0.02 0.28 --
------- ------- ------- ------- ------
Net asset value, end of year......... $ 7.01 $ 6.18 $ 6.05 $ 5.39 $ 4.96
======= ======= ======= ======= ======
Total return............... 13.43%B 5.26% 12.65% 14.64% (0.80)%B
------- ------- ------- ------- ------
Net assets, end of year (000)........ $91,410 $78,148 $52,768 $18,598 $3,247
------- ------- ------- ------- ------
Ratio of net operating expenses to
average net assets................. 1.20%A 1.19% 1.38% 1.55% 1.55% A
------- ------- ------- ------- ------
Ratio of net operating expenses
(excluding waivers) to average net
assets............................. 1.20%A 1.19% 1.38% 2.21% 8.85% A
------- ------- ------- ------- ------
Ratio of net investment income to
average net assets................. 1.77%A 1.34% 1.32% 1.17% 0.80% A
------- ------- ------- ------- ------
Ratio of net investment income
(excluding waivers) to average net
assets............................. 1.77%A 1.34% 1.32% 0.51% (6.34)%A
------- ------- ------- ------- ------
Portfolio turnover................... 37%A 28% 21% 27% 0% A
------- ------- ------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
121
<PAGE> 138
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
(UNAUDITED) YEARS ENDED DECEMBER 31, PERIOD OF
SIX MONTHS ENDED ----------------------------- NOVEMBER 18, 1994-
JUNE 30, 1998 1997 1996 1995 DECEMBER 31, 1994
---------------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 5.71 $ 5.51 $ 5.31 $ 4.98 $ 5.00
------- ------- ------- ------- ------
Income from investment operations:
Net investment income................. 0.22 0.51 0.45 0.45 0.04
Net realized and unrealized gain
(loss) on investments.............. 0.05 0.20 0.21 0.35 (0.01)
------- ------- ------- ------- ------
Total from investment
operations.................. 0.27 0.71 0.66 0.80 0.03
------- ------- ------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net
investment income.................. 0.22 0.51 0.45 0.45 0.05
Distribution to shareholders from net
capital gains...................... -- -- 0.01 0.02 --
------- ------- ------- ------- ------
Total dividends and
distributions............... 0.22 0.51 0.46 0.47 0.05
------- ------- ------- ------- ------
Net asset value, end of year............ $ 5.76 $ 5.71 $ 5.51 $ 5.31 $ 4.98
======= ======= ======= ======= ======
Total return.................. 4.78%B 13.38% 12.93% 16.59% 0.50%B
------- ------- ------- ------- ------
Net assets, end of year (000)........... $89,798 $68,364 $34,411 $15,223 $1,421
------- ------- ------- ------- ------
Ratio of net operating expenses to
average net assets.................... 0.72%A 0.77% 0.85% 0.85% 0.85%A
------- ------- ------- ------- ------
Ratio of net operating expenses
(excluding waivers) to average net
assets................................ 0.72%A 0.77% 0.94% 1.59% 7.80%A
------- ------- ------- ------- ------
Ratio of net investment income to
average net assets.................... 7.70%A 8.47% 8.57% 8.51% 7.84%A
------- ------- ------- ------- ------
Ratio of net investment income
(excluding waivers) to average net
assets................................ 7.70%A 8.47% 8.48% 7.77% 0.80%A
------- ------- ------- ------- ------
Portfolio turnover...................... 135%A 175% 175% 115% 0%A
------- ------- ------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
122
<PAGE> 139
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1998
1. ORGANIZATION
Enterprise Accumulation Trust (the "Trust") was organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 as an open-end management investment company. The Trust is authorized to
issue an unlimited number of five classes of shares of beneficial interest at
$.01 par value: the Equity Portfolio, the Small Company Value Portfolio, the
Managed Portfolio, the International Growth Portfolio and the High-Yield Bond
Portfolio. Prior to May 1, 1998, the Small Company Value Portfolio was known as
the Small Cap Portfolio.
The Trust serves as an investment vehicle for MONYMaster, a flexible
payment variable annuity policy, and MONY Equity Master, a flexible premium
variable universal life insurance policy, issued by The Mutual Life Insurance
Company of New York, Inc. ("MONY") and MONY America, a wholly-owned subsidiary
of MONY. The Trust also serves as an investment vehicle for a
corporate-sponsored variable universal life product issued by MONY America.
2. SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments -- The Equity, Small Company Value, Managed,
International Growth and High-Yield Bond Portfolios: investment securities,
other than debt securities, listed on either a national or foreign securities
exchange or traded in the over-the-counter National Market System are valued
each business day at the last reported sales price; if there are no such
reported sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at the last quoted bid price. Debt securities (other than certain
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Trustees. Short-term debt securities having a
remaining maturity of sixty days or less are valued at amortized cost, which
approximates market value. Any securities for which market quotations are not
readily available are valued at their fair value as determined in good faith by
the Board of Trustees.
Special Valuation Risk -- The high-yield securities in which the High-Yield
Bond Portfolio may invest may be considered speculative in regard to the
issuer's continuing ability to meet principal and interest payments. The value
of the lower rated securities in which the High-Yield Bond Portfolio may invest
will be affected by the credit worthiness of individual issuers, general
economic and specific industry conditions, and will fluctuate inversely with
changes in interest rates. In addition, the secondary trading market for lower
quality bonds may be less active and less liquid than the trading market for
higher quality bonds.
Repurchase Agreements -- Each Portfolio may acquire securities subject to
repurchase agreements. Under a typical repurchase agreement, a Portfolio would
acquire a debt security for a relatively short period (usually for one day and
not for more than one week) subject to an obligation of the seller to repurchase
and of the Portfolio to resell the debt security at an agreed-upon higher price,
thereby establishing a fixed investment return during the Portfolio's holding
period. Under each repurchase agreement, the Portfolio receives, as collateral,
securities whose market value (including interest) is at least equal to the
repurchase price.
Futures Contracts -- Upon entering into such a contract, a Portfolio is
required to deposit with the broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the exchange. Pursuant to the contract,
the Portfolio agrees to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such receipts or
payments, known as "variation margin," are recorded by the Portfolio as
unrealized appreciation or depreciation. When the contract is closed the
Portfolio records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and value at the time it was
closed and reverses any unrealized appreciation or depreciation previously
recorded. There were no open futures contracts held in any of the Portfolios at
June 30, 1998.
Foreign Currency Translation -- Securities, other assets and liabilities of
the International Growth Portfolio whose values are initially expressed in
foreign currencies are translated to U.S. dollars at the bid price of such
currency against U.S. dollars last quoted by a major bank. Dividend and interest
income and certain expenses denominated in foreign currencies are marked-
to-market daily based on daily exchange rates and exchange gains and losses are
realized upon ultimate receipt or disbursement. The Trust does not isolate that
portion of its realized and unrealized gains on investments from changes in
foreign exchange rates from fluctuations arising from changes in the market
prices of the investments.
123
<PAGE> 140
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
JUNE 30, 1998
Security Transactions and Investment Income -- Security transactions are
accounted for on the trade date. In determining the gain or loss from the sale
of securities, the cost of securities sold has been determined on the basis of
identified cost. Dividend income is recorded on the ex-dividend date and
interest income is accrued as earned. Discounts or premiums on debt securities
purchased are accreted or amortized to interest income over lives of the
respective securities.
Expenses -- Each portfolio bears expenses incurred specifically on its
behalf as well as a portion of the common expenses of the Trust.
Federal Income Tax -- No provision for Federal income or excise taxes is
required, because the Trust intends to continue to qualify as a regulated
investment company and distribute all of its taxable income to shareholders.
Use of Estimates in Preparation of Financial Statements -- Preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities at the date of the financial
statement and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Dividends and Distributions -- The Equity, Small Company Value, Managed and
International Growth Portfolios: Dividends and distributions to shareholders
from net investment income and net realized capital gains, if any, are declared
and paid at least annually. The High-Yield Bond Portfolio: Dividends from net
investment income are declared daily and paid monthly. Distributions from net
realized capital gains, if any, are declared and paid at least annually.
3. FINANCIAL INSTRUMENTS
As part of its investment program, the International Growth Portfolio
utilizes forward currency exchange contracts to manage exposure to currency
fluctuations and hedge against adverse changes in connection with purchases and
sales of securities. The Portfolio enters into forward contracts only for
hedging purposes. At June 30, 1998, the International Growth Portfolio had
entered into various forward currency exchange contracts under which it is
obligated to exchange currencies at specified future dates. Risks arise from the
possible inability of counterparties to meet the terms of their contracts and
from movements in currency values. Outstanding contracts at June 30, 1998 are as
follows:
<TABLE>
<CAPTION>
CONTRACT TO NET UNREALIZED
SETTLEMENT --------------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
---------- ------------------ ------------------ --------------
<S> <C> <C> <C>
7/17/98 USD 1,723,475 AUD 2,600,000 $ 109,112
7/17/98 AUD 4,400,000 USD 3,008,940 (276,940)
7/17/98 USD 1,793,722 BEL 67,000,000 (9,606)
7/17/98 CAD 1,900,000 USD 1,328,346 (36,687)
7/17/98 CHF 2,700,000 USD 1,842,123 (56,071)
7/17/98 USD 1,004,733 CHF 1,450,000 45,557
7/17/98 USD 386,612 DEM 700,000 (1,938)
7/17/98 DEM 1,800,000 USD 1,005,053 (5,924)
7/17/98 DKK 5,700,000 USD 825,489 4,833
7/17/98 ESP 420,000,000 USD 2,738,923 1,566
7/17/98 USD 1,050,694 FIM 5,700,000 9,742
7/17/98 FRF 9,300,000 USD 1,533,338 6,545
7/17/98 USD 1,148,392 FRF 6,900,000 5,898
7/17/98 USD 6,343,492 GBP 3,900,000 (162,352)
7/17/98 USD 610,113 HKD 4,900,000 (21,347)
7/17/98 USD 405,229 ITL 730,000,000 (5,742)
7/17/98 JPY 196,000,000 USD 1,562,656 (141,529)
7/17/98 USD 420,561 MYR 1,800,000 (9,455)
7/17/98 MYR 1,800,000 USD 457,957 (27,941)
7/17/98 NLG 1,400,000 USD 686,662 2,781
7/17/98 NOK 3,000,000 USD 400,882 (9,296)
7/17/98 SEK 4,300,000 USD 538,422 1,063
7/17/98 USD 474,595 SGD 850,000 (29,446)
---------
$(607,177)
=========
</TABLE>
124
<PAGE> 141
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
JUNE 30, 1998
As part of its investment program, the High-Yield Bond Portfolio enters
into futures contracts to hedge against anticipated future price and interest
rate changes. Risks of entering into futures contracts include: (1) the risk
that the price of the futures contracts may not move in the same direction as
the price of the securities in the various markets; (2) the risk that there will
be no liquid secondary market when the portfolio attempts to enter into a
closing position, (3) the risk that the portfolio will lose an amount in excess
of the initial margin deposit; and (4) the fact that the success or failure of
these transactions for the portfolio depends on the ability of the Portfolio
Manager to predict movements in stock, bond, and currency prices and interest
rates. There were no open futures contracts at June 30, 1998 in the High-Yield
Bond Portfolio.
For the period ended June 30, 1998, purchases and sales proceeds of
investment securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS OTHER INVESTMENT SECURITIES
--------------------------- ---------------------------
PORTFOLIO PURCHASES SALES PURCHASES SALES
--------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Equity................................................. -- -- $132,776,868 $ 76,200,618
Small Company Value.................................... -- -- 110,503,542 69,440,118
Managed................................................ -- $8,370,000 597,484,615 607,703,777
International Growth................................... -- -- 17,164,549 14,998,900
High-Yield Bond........................................ $5,066,680 4,387,109 67,155,514 47,208,466
</TABLE>
4. TRANSACTIONS WITH AFFILIATES
The investment advisory fee is payable monthly to Enterprise Capital
Management, Inc. ("ECM"), a wholly-owned subsidiary of MONY, and is computed as
a percentage of each Portfolio's net assets as of the close of business each day
and is as follows: for each of the Equity, Small Company Value, and Managed
Portfolios, .80% for the first $400 million, .75% for the next $400 million, and
.70% for net assets over $800 million, .85% for the International Growth
Portfolio and .60% for the High-Yield Bond Portfolio.
ECM has agreed to reimburse the Portfolios for expenses incurred in excess
of a percentage of average net assets. The percentages are as follows:
Equity -- .95%, Small Company Value -- .95%, Managed -- .95%, International
Growth Portfolio -- 1.55% and High-Yield Bond Portfolio -- .85%.
ECM has entered into sub-advisory agreements with various investment
advisers as Portfolio Managers for the Trust. A portion of the management fee
received by ECM is paid to the Portfolio Manager.
5. TAX BASIS UNREALIZED GAIN (LOSS) OF INVESTMENTS AND DISTRIBUTIONS
At June 30, 1998, the composition of unrealized appreciation (depreciation)
of investment securities and the cost of investment for Federal income tax
purposes were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED UNREALIZED
PORTFOLIO TAX COST GAIN LOSS GAIN (LOSS)
--------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Equity............................................... $ 455,415,112 $173,354,952 $ (7,894,688) $165,460,264
Small Company Value.................................. 356,621,148 118,983,463 (7,919,716) 111,063,747
Managed.............................................. 2,196,472,253 919,335,191 (39,971,963) 879,363,228
International Growth................................. 81,700,292 17,189,068 (7,926,090) 9,262,978
High-Yield Bond...................................... 87,406,210 2,369,477 (934,680) 1,434,797
</TABLE>
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions, losses deferred due to wash sales, foreign
currency transactions, investments in passive foreign investment companies, and
excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital. Any taxable
gain remaining at fiscal year end is distributed in the following year.
125
<PAGE> 142
TRUSTEES AND PRINCIPAL OFFICERS
<TABLE>
<S> <C>
Victor Ugolyn Trustee, Chairman, President and
Chief Executive Officer
Arthur T. Dietz Trustee
Samuel J. Foti Trustee
Arthur Howell Trustee
William A. Mitchell, Jr. Trustee
Lonnie H. Pope Trustee
Michael I. Roth Trustee
Phillip G. Goff Vice President
Catherine R. McClellan Secretary
Herbert M. Williamson Treasurer
</TABLE>
INVESTMENT ADVISER
Enterprise Capital Management, Inc.
Atlanta Financial Center
3343 Peachtree Road, Suite 450
Atlanta, Georgia 30326
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P. O. Box 1713
Boston, Massachusetts 02105
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1100 Campanile Building
1155 Peachtree Street
Atlanta, Georgia 30309
This report is authorized for distribution only to shareholders and to
others who have received a copy of this Trust's prospectus.
126
<PAGE> 143
ISSUED BY:
MONY LIFE INSURANCE COMPANY OF AMERICA
(An Arizona Stock Corporation)
(not licensed to solicit or transact
business in New York)
1740 Broadway, New York, NY 10019
or in New York,
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
1740 Broadway, New York, NY 10019
DISTRIBUTOR OF MONYMASTER AND MONYEQUITY MASTER:
MONY SECURITIES CORP.
1740 Broadway, New York, NY 10019
(Member NASD, SIPC)
NEW98-745
<PAGE> 144
[MONY LOGO] ----------------------
The Mutual Life Insurance Company of New York BULK RATE
Administrative Offices U.S. POSTAGE
1740 Broadway, New York, NY 10019 PAID
ADDRESS CORRECTION REQUESTED PERMIT NO. 8048
NEW YORK, NEW YORK
----------------------
Form No. 14005SL (8/98)
