<PAGE> 1
MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
1997 ANNUAL REPORT
PRODUCTS:
MONYMASTER
MONYEQUITY MASTER
VALUEMASTER
MONYVESTOR
STRATEGIST
- --------------------------------------------------------------------------------
---------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 turmoil in Southeast Asia, which began during the fourth quarter, has
become the major market influence of the moment. The crisis is still developing
with new problems surfacing daily, and the extent is still to be determined.
Many remedies are being put forward, but the problems vary from country to
country and no one solution fits all. Time will be required as well as money,
and no near term resolution is expected.
The risks have increased as a result of the problems in Southeast Asia. In
general the initial impact on the U.S. economy is somewhat positive: growth will
be slower, and inflation and interest rates lower than they would have been.
Investors had been concerned that if growth were too fast, wages would begin to
increase rapidly and inflation would rise, which would cause the Federal Reserve
to tighten the money supply. This seems much less likely now, at least in the
near term, and thus the economic outlook is favorable -- there is neither
recession nor boom in the immediate future.
This outlook should be favorable for financial assets, and it is, but
mostly for bonds which have already rallied strongly. For the stock market, the
benefits are mixed, and the question is whether the favorable effects of lower
interest rates offset the unfavorable effects of lower earnings. (Many valuation
models use a tradeoff between interest rates and earnings to determine fair
value.) The same conditions that are positive for interest rates will put
pressure on earnings. Slower growth will mean lower revenues, lack of pricing
power will inhibit price increases, companies will put pressure on suppliers to
hold costs down, but falling unemployment will put upward pressure on
compensation. The result is that corporate earnings will be squeezed, earnings
growth will be positive but will be slower than in recent years.
The combination of still developing Asian problems, relatively high
valuations and slower earnings growth makes the environment for stocks less
attractive. As the year goes on and the Asian crisis unfolds, it is likely that
a number of unforeseen negatives will surface both for the economy and for
individual companies. There are many interrelated links that are unknown now,
but will likely become evident as companies begin to see the impact of the
turmoil on their business. All these factors argue for a less ebullient stock
market in 1998. On the positive side is the relatively stable economy, lower
interest rates, the stronger dollar and the idea of the U.S. as a safe haven for
investors. These positive factors should contain the expected market correction
and keep it from turning into something worse.
The MONY Series Fund, Inc. has conducted a comprehensive review of the
computer systems used in connection with the portfolios. The Fund is addressing
the Year 2000 issues by modifying existing software and converting to an
accounting system that is Year 2000 compliant. The costs to remedy these issues
are being borne by the Investment Adviser. As a result, the Fund does not expect
the Year 2000 issue to pose a material adverse effect to its operations and
financial condition.
Sincerely,
LOGO
Kenneth M. Levine
Chairman
1
<PAGE> 4
THE MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
VARIABLE ACCOUNT L
MONY America
Statements of Assets and Liabilities as of December 31, 1997................ 5
Statements of Operations as of December 31, 1997............................ 7
Statements of Changes in Net Assets......................................... 9
Notes to Financial Statements............................................... 12
Report of Independent Accountants........................................... 15
MONY
Statements of Assets and Liabilities as of December 31, 1997................ 16
Statements of Operations as of December 31, 1997............................ 18
Statements of Changes in Net Assets......................................... 20
Notes to Financial Statements............................................... 23
Report of Independent Accountants........................................... 26
VARIABLE ACCOUNT S
MONY America
Statements of Assets and Liabilities as of December 31, 1997................ 27
Statements of Operations as of December 31, 1997............................ 28
Statements of Changes in Net Assets......................................... 29
Notes to Financial Statements............................................... 30
Report of Independent Accountants........................................... 32
MONY
Statements of Assets and Liabilities as of December 31, 1997................ 33
Statements of Operations as of December 31, 1997............................ 34
Statements of Changes in Net Assets......................................... 35
Notes to Financial Statements............................................... 36
Report of Independent Accountants........................................... 38
VARIABLE ACCOUNT A
MONY America
Statements of Assets and Liabilities as of December 31, 1997................ 39
Statements of Operations as of December 31, 1997............................ 42
Statements of Changes in Net Assets......................................... 45
Notes to Financial Statements............................................... 49
Report of Independent Accountants........................................... 53
MONY
Statements of Assets and Liabilities as of December 31, 1997................ 54
Statements of Operations as of December 31, 1997............................ 57
Statements of Changes in Net Assets......................................... 60
Notes to Financial Statements............................................... 64
Report of Independent Accountants........................................... 67
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
MONY SERIES FUND, INC.
Equity Growth Portfolio (MONYMaster I, MONYVestor and Strategist)................ 68
Equity Income Portfolio (MONYMaster I, MONYVestor and Strategist)................ 69
Intermediate Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor
and Strategist)................................................................. 70
Long Term Bond Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)..................................................................... 71
Diversified Portfolio (MONYMaster I, MONYVestor and Strategist).................. 73
Government Securities Bond Portfolio (MONYEquity Master, MONYMaster II).......... 74
Money Market Portfolio (MONYEquity Master, MONYMaster I&II, MONYVestor and
Strategist)..................................................................... 75
Equity Growth Portfolio of Investments (MONYMaster I, MONYVestor and
Strategist)..................................................................... 76
Equity Income Portfolio of Investments (MONYMaster I, MONYVestor and
Strategist)..................................................................... 78
Intermediate Term Bond Portfolio of Investments (MONYEquity Master, MONYMaster
I&II, MONYVestor and Strategist)................................................ 80
Long Term Bond Portfolio of Investments (MONYEquity Master, MONYMaster I&II,
MONYVestor and Strategist)...................................................... 81
Diversified Portfolio of Investments (MONYMaster I, MONYVestor and Strategist)... 83
Government Securities Bond Portfolio of Investments (MONYEquity Master,
MONYMaster II).................................................................. 85
Money Market Portfolio of Investments (MONYEquity Master, MONYMaster I&II,
MONYVestor and Strategist)...................................................... 86
Statements of Assets and Liabilities as of December 31, 1997..................... 88
Statements of Operations as of December 31, 1997................................. 89
Statements of Changes in Net Assets.............................................. 90
NOTES TO FINANCIAL STATEMENTS.................................................... 92
FINANCIAL HIGHLIGHTS............................................................. 95
Report of Independent Accountants................................................ 102
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio (MONYEquity Master, MONYMaster II).............................. 105
Small Cap Portfolio (MONYEquity Master, MONYMaster II)........................... 108
Managed Portfolio (MONYEquity Master, MONYMaster II)............................. 113
International Growth Portfolio (MONYEquity Master, MONYMaster II)................ 117
High Yield Bond Portfolio (MONYEquity Master, MONYMaster II)..................... 123
Statements of Assets and Liabilities as of December 31, 1997..................... 129
Statements of Operations as of December 31, 1997................................. 130
Statements of Changes in Net Assets.............................................. 132
FINANCIAL HIGHLIGHTS............................................................. 134
NOTES TO FINANCIAL STATEMENTS.................................................... 139
Report of Independent Accountants................................................ 142
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
OCC ACCUMULATION TRUST
Equity Portfolio (ValueMaster)................................................... 146
Small Cap Portfolio (ValueMaster)................................................ 148
Managed Portfolio (ValueMaster).................................................. 150
U.S. Government Income Portfolio (ValueMaster)................................... 152
Money Market Portfolio (ValueMaster)............................................. 153
Equity Portfolio Schedule of Investments (ValueMaster)........................... 154
Small Cap Portfolio Schedule of Investments (ValueMaster)........................ 155
Managed Portfolio Schedule of Investments (ValueMaster).......................... 156
U.S. Government Income Portfolio Schedule of Investments (ValueMaster)........... 157
Money Market Portfolio Schedule of Investments (ValueMaster)..................... 158
Statements of Assets and Liabilities as of December 31, 1997..................... 159
Statements of Operations as of December 31, 1997................................. 160
Statements of Changes in Net Assets.............................................. 161
NOTES TO FINANCIAL STATEMENTS.................................................... 162
FINANCIAL HIGHLIGHTS............................................................. 165
Report of Independent Accountants................................................ 166
</TABLE>
4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
-----------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $ 546,247 $ 487,414 $ 148,164 $ 63,055 $ 806,595 $ 75,563
========= ========= ========= ========= ========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2).............................. $ 798,134 $ 705,660 $ 156,537 $ 71,555 $1,111,163 $ 75,563
Amount due from MONY Series Fund,
Inc. ........................... 9 9 0 0 26 0
--------- --------- --------- --------- ---------- ---------
Total assets............ 798,143 705,669 156,537 71,555 1,111,189 75,563
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY America........ 9 9 0 0 26 0
--------- --------- --------- --------- ---------- ---------
Net assets........................ $ 798,134 $ 705,660 $ 156,537 $ 71,555 $1,111,163 $ 75,563
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net payments... $ 537,453 $ 445,418 $ 192,229 $ 108,555 $ 933,695 $ 198,422
Cost of insurance withdrawals
(Note 3)..................... (383,528) (486,949) (201,904) (156,404) (916,797) (200,035)
Undistributed net investment
income....................... 168,021 327,758 163,834 100,095 533,506 77,176
Accumulated net realized gain
(loss) on investments........ 224,301 201,187 (5,995) 10,809 256,191 0
Unrealized appreciation of
investments.................. 251,887 218,246 8,373 8,500 304,568 0
--------- --------- --------- --------- ---------- ---------
Net assets........................ $ 798,134 $ 705,660 $ 156,537 $ 71,555 $1,111,163 $ 75,563
========= ========= ========= ========= ========== =========
Number of units outstanding* ..... 14,506 12,292 6,639 2,334 28,291 4,207
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding* ................... $ 55.02 $ 57.41 $ 23.58 $ 30.65 $ 39.28 $ 17.96
========= ========= ========= ========= ========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
5
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<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).................... $229,105 $ 870,461 $482,067 $3,698,674 $15,117,468 $7,542,179
======== ========= ======== ========== =========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $ 0 $ 0 $ 0 $ 0 $16,482,798 $8,184,725
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 234,365 948,462 498,405 3,698,674 0 0
Amount due from Enterprise Accumulation Trust... 0 0 0 0 3,531 859
Amount due from MONY America.................... 48 418 202 80,882 25,829 2,025
Amount due from MONY Series Fund, Inc........... 11 130 41 11,681 0 0
-------- --------- -------- ---------- ----------- ----------
Total assets............................ 234,424 949,010 498,648 3,791,237 16,512,158 8,187,609
-------- --------- -------- ---------- ----------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 0 0 0 0 25,829 2,025
Amount due to MONY America...................... 11 130 41 11,681 3,531 859
Amount due to MONY Series Fund, Inc............. 48 418 202 80,882 0 0
-------- --------- -------- ---------- ----------- ----------
Total liabilities....................... 59 548 243 92,563 29,360 2,884
-------- --------- -------- ---------- ----------- ----------
Net assets...................................... $234,365 $ 948,462 $498,405 $3,698,674 $16,482,798 $8,184,725
======== ========= ======== ========== =========== ==========
Net assets consist of:
Contractholders' net payments................. $265,298 $ 982,905 $552,598 $4,020,118 $16,582,774 $7,692,676
Cost of insurance withdrawals (Note 3)........ (43,218) (167,996) (91,027) (544,035) (2,948,581) (1,239,409)
Undistributed net investment income........... 6,097 47,307 14,524 222,591 538,907 705,833
Accumulated net realized gain on
investments................................. 928 8,245 5,972 0 944,368 383,079
Unrealized appreciation (depreciation) of
investments................................. 5,260 78,001 16,338 0 1,365,330 642,546
-------- --------- -------- ---------- ----------- ----------
Net assets...................................... $234,365 $ 948,462 $498,405 $3,698,674 $16,482,798 $8,184,725
======== ========= ======== ========== =========== ==========
Number of units outstanding* ................... 19,650 69,779 42,420 325,979 821,090 449,403
-------- --------- -------- ---------- ----------- ----------
Net asset value per unit outstanding* .......... $ 11.93 $ 13.59 $ 11.75 $ 11.35 $ 20.07 $ 18.21
======== ========= ======== ========== =========== ==========
<CAPTION>
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................... $ 54,701,619 $ 4,186,777 $1,900,963
=========== ========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $ 60,069,001 $ 4,079,254 $1,939,719
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 0 0 0
Amount due from Enterprise Accumulation Trust... 9,107 308 240
Amount due from MONY America.................... 37,486 214 71
Amount due from MONY Series Fund, Inc........... 0 0 0
----------- ---------- ----------
Total assets............................ 60,115,594 4,079,776 1,940,030
----------- ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 37,486 214 71
Amount due to MONY America...................... 9,107 308 240
Amount due to MONY Series Fund, Inc............. 0 0 0
----------- ---------- ----------
Total liabilities....................... 46,593 522 311
----------- ---------- ----------
Net assets...................................... $ 60,069,001 $ 4,079,254 $1,939,719
=========== ========== ==========
Net assets consist of:
Contractholders' net payments................. $ 58,710,094 $ 4,679,851 $2,041,929
Cost of insurance withdrawals (Note 3)........ (10,471,466) (773,836) (338,204)
Undistributed net investment income........... 2,719,621 115,713 160,937
Accumulated net realized gain on
investments................................. 3,743,370 165,049 36,301
Unrealized appreciation (depreciation) of
investments................................. 5,367,382 (107,523) 38,756
----------- ---------- ----------
Net assets...................................... $ 60,069,001 $ 4,079,254 $1,939,719
=========== ========== ==========
Number of units outstanding* ................... 2,954,670 290,466 138,275
----------- ---------- ----------
Net asset value per unit outstanding* .......... $ 20.33 $ 14.04 $ 14.03
=========== ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
6
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
-----------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.................... $ 57,504 $ 80,960 $ 10,378 $ 5,654 $ 84,416 $ 4,176
Mortality and expense risk charges
(Note 3)......................... (4,464) (4,333) (1,004) (507) (6,671) (487)
-------- -------- ------- ------- -------- -------
Net investment income.............. 53,040 76,627 9,374 5,147 77,745 3,689
-------- -------- ------- ------- -------- -------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.............. 87,998 205,963 55,717 38,794 311,417 32,317
Cost of shares sold.............. (54,391) (121,259) (54,045) (35,014) (211,325) (32,317)
-------- -------- ------- ------- -------- -------
Net realized gain on investments... 33,607 84,704 1,672 3,780 100,092 0
Net increase in unrealized
appreciation of investments...... 101,936 32,332 288 649 59,772 0
-------- -------- ------- ------- -------- -------
Net realized and unrealized gain on
investments...................... 135,543 117,036 1,960 4,429 159,864 0
-------- -------- ------- ------- -------- -------
Net increase in net assets
resulting from operations........ $188,583 $ 193,663 $ 11,334 $ 9,576 $ 237,609 $ 3,689
======== ======== ======= ======= ======== =======
</TABLE>
See notes to financial statements.
7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.................. $ 6,095 $ 42,293 $ 14,009 $ 135,531 $ 544,698 $ 694,933
Mortality and expense risk
charges (Note 3)............... (1,008) (5,751) (2,949) (19,730) (77,153) (34,486)
-------- --------- --------- ------------ ----------- -----------
Net investment income............ 5,087 36,542 11,060 115,801 467,545 660,447
-------- --------- --------- ------------ ----------- -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 52,711 292,029 143,307 24,713,256 3,327,872 1,503,358
Cost of shares sold............ (51,442) (285,745) (138,374) (24,713,256) (2,581,752) (1,160,613)
-------- --------- --------- ------------ ----------- -----------
Net realized gain on
investments.................... 1,269 6,284 4,933 0 746,120 342,745
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,027 56,115 9,241 0 984,236 568,217
-------- --------- --------- ------------ ----------- -----------
Net realized and unrealized gain
(loss) on investments.......... 4,296 62,399 14,174 0 1,730,356 910,962
-------- --------- --------- ------------ ----------- -----------
Net increase in net assets
resulting from operations...... $ 9,383 $ 98,941 $ 25,234 $ 115,801 $ 2,197,901 $ 1,571,409
======== ========= ========= ============ =========== ===========
<CAPTION>
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ----------
<S> <C> <C> <C>
Dividend income.................. $ 2,719,101 1$20,361..... $ 121,077
Mortality and expense risk
charges (Note 3)............... (318,312) (21,528) (9,887)
----------- ---------- ---------
Net investment income............ 2,400,789 98,833 111,190
----------- ---------- ---------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 11,923,853 1,007,459 636,523
Cost of shares sold............ (9,087,421) (871,948) (600,592)
----------- ---------- ---------
Net realized gain on
investments.................... 2,836,432 135,511 35,931
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,108,829 (204,105) 12,532
----------- ---------- ---------
Net realized and unrealized gain
(loss) on investments.......... 5,945,261 (68,594) 48,463
----------- ---------- ---------
Net increase in net assets
resulting from operations...... $ 8,346,050 3$0,239...... $ 159,653
=========== ========== =========
</TABLE>
See notes to financial statements.
8
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
--------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- -------------------- ------------------- -------------------
1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............. $ 53,040 $ (3,666) $ 76,627 $ (2,649) $ 9,374 $ (1,063) $ 5,147 $ (582)
Net realized gain on investments......... 33,607 22,971 84,704 35,481 1,672 665 3,780 1,989
Net increase (decrease) in unrealized
appreciation of investments............ 101,936 92,373 32,332 80,163 288 5,698 649 (2,681)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations................ 188,583 111,678 193,663 112,995 11,334 5,300 9,576 (1,274)
-------- -------- -------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 35,646 46,370 39,172 38,780 8,194 12,039 4,547 5,926
Net asset value of units redeemed or used
to meet contract obligations........... (59,621) (75,563) (193,625) (90,508) (40,032) (23,076) (37,821) (15,517)
-------- -------- -------- -------- -------- -------- -------- --------
Net decrease from unit transactions........ (23,975) (29,193) (154,453) (51,728) (31,838) (11,037) (33,274) (9,591)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets...... 164,608 82,485 39,210 61,267 (20,504) (5,737) (23,698) (10,865)
Net assets beginning of year............... 633,526 551,041 666,450 605,183 177,041 182,778 95,253 106,118
-------- -------- -------- -------- -------- -------- -------- --------
Net assets end of year*.................... $798,134 $633,526 $ 705,660 $666,450 $156,537 $177,041 $ 71,555 $ 95,253
======== ======== ======== ======== ======== ======== ======== ========
Units outstanding beginning of year........ 14,958 15,643 15,149 16,377 8,041 8,556 3,504 3,869
Units issued during the year............... 747 1,232 783 1,004 362 562 165 226
Units redeemed during the year............. (1,199) (1,917) (3,640) (2,232) (1,764) (1,077) (1,335) (591)
-------- -------- -------- -------- -------- -------- -------- --------
Units outstanding end of year.............. 14,506 14,958 12,292 15,149 6,639 8,041 2,334 3,504
======== ======== ======== ======== ======== ======== ======== ========
- ---------------
* Includes undistributed net investment
income of: $168,021 $114,981 $ 327,758 $251,131 $163,834 $154,460 $100,095 $ 94,948
<CAPTION>
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------------- -------------------
1997 1996 1997 1996
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............. $ 77,745 $ (6,210) $ 3,689 $ 3,835
Net realized gain on investments......... 100,092 29,580 0 0
Net increase (decrease) in unrealized
appreciation of investments............ 59,772 110,202 0 0
---------- ---------- -------- --------
Net increase (decrease) in net assets
resulting from operations................ 237,609 133,572 3,689 3,835
---------- ---------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 77,730 85,626 6,471 9,558
Net asset value of units redeemed or used
to meet contract obligations........... (287,917) (124,946) (19,886) (18,398)
---------- ---------- -------- --------
Net decrease from unit transactions........ (210,187) (39,320) (13,415) (8,840)
---------- ---------- -------- --------
Net increase (decrease) in net assets...... 27,422 94,252 (9,726) (5,005)
Net assets beginning of year............... 1,083,741 989,489 85,289 90,294
---------- ---------- -------- --------
Net assets end of year*.................... $1,111,163 $1,083,741 $ 75,563 $ 85,289
========== ========== ======== ========
Units outstanding beginning of year........ 34,279 35,607 4,970 5,499
Units issued during the year............... 2,219 2,942 368 570
Units redeemed during the year............. (8,207) (4,270) (1,131) (1,099)
---------- ---------- -------- --------
Units outstanding end of year.............. 28,291 34,279 4,207 4,970
========== ========== ======== ========
- ---------------
* Includes undistributed net investment
income of: $ 533,506 $ 455,761 $ 77,176 $ 73,487
</TABLE>
See notes to financial statements.
9
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------
INTERMEDIATE TERM LONG TERM GOVERNMENT
BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------- --------------------- ---------
1997 1996 1997 1996 1997
-------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..................................... $ 5,087 $ (404) $ 36,542 $ (3,193) $ 11,060
Net realized gain (loss) on investments.......................... 1,269 (715) 6,284 795 4,933
Net increase in unrealized appreciation of investments........... 3,027 3,148 56,115 13,609 9,241
-------- ------- -------- -------- --------
Net increase in net assets resulting from operations............... 9,383 2,029 98,941 11,211 25,234
-------- ------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.......................... 172,340 82,991 471,749 425,430 288,293
Net asset value of units redeemed or used to meet contract
obligations.................................................... (38,182) (20,916) (236,759) (91,922) (107,779)
-------- ------- -------- -------- --------
Net increase (decrease) from unit transactions..................... 134,158 62,075 234,990 333,508 180,514
-------- ------- -------- -------- --------
Net increase (decrease) in net assets.............................. 143,541 64,104 333,931 344,719 205,748
Net assets beginning of year....................................... 90,824 26,720 614,531 269,812 292,657
-------- ------- -------- -------- --------
Net assets end of year*............................................ $234,365 $ 90,824 $ 948,462 $614,531 $ 498,405
======== ======= ======== ======== ========
Units outstanding beginning of year................................ 8,138 2,464 50,910 22,127 26,498
Units issued during the year....................................... 14,831 7,592 37,613 36,743 25,322
Units redeemed during the year..................................... (3,319) (1,918) (18,744) (7,960) (9,400)
-------- ------- -------- -------- --------
Units outstanding end of year...................................... 19,650 8,138 69,779 50,910 42,420
======== ======= ======== ======== ========
- ---------------
* Includes undistributed net investment income of: $ 6,097 $ 1,010 $ 47,307 $ 10,765 $ 14,524
<CAPTION>
MONEY
MARKET
SUBACCOUNT
----------------------------
1996 1997 1996
-------- ------------ ------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..................................... $ (1,630) $ 115,801 $ 86,414
Net realized gain (loss) on investments.......................... 906 0 0
Net increase in unrealized appreciation of investments........... 7,805 0 0
-------- ------------ ------------
Net increase in net assets resulting from operations............... 7,081 115,801 86,414
-------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of units.......................... 149,977 20,219,389 15,675,163
Net asset value of units redeemed or used to meet contract
obligations.................................................... (35,779) (20,985,756) (13,113,154)
-------- ------------ ------------
Net increase (decrease) from unit transactions..................... 114,198 (766,367) 2,562,009
-------- ------------ ------------
Net increase (decrease) in net assets.............................. 121,279 (650,566) 2,648,423
Net assets beginning of year....................................... 171,378 4,349,240 1,700,817
-------- ------------ ------------
Net assets end of year*............................................ $292,657 $ 3,698,674 $ 4,349,240
======== ============ ============
Units outstanding beginning of year................................ 15,959 400,565 163,465
Units issued during the year....................................... 13,851 1,818,649 1,469,700
Units redeemed during the year..................................... (3,312) (1,893,235) (1,232,600)
-------- ------------ ------------
Units outstanding end of year...................................... 26,498 325,979 400,565
======== ============ ============
- ---------------
* Includes undistributed net investment income of: $ 3,464 $ 222,591 $ 106,790
</TABLE>
See notes to financial statements.
10
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------- ------------------------- --------------------------
1997 1996 1997 1996 1997 1996
----------- ---------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)....... $ 467,545 $ 46,194 $ 660,447 $ 28,953 $ 2,400,789 $ 134,759
Net realized gain on investments... 746,120 174,857 342,745 30,574 2,836,432 783,666
Net increase (decrease) in
unrealized appreciation of
investments...................... 984,236 357,881 568,217 78,392 3,108,829 2,166,435
----------- ---------- ---------- ---------- ----------- -----------
Net increase in net assets resulting
from operations.................... 2,197,901 578,932 1,571,409 137,919 8,346,050 3,084,860
----------- ---------- ---------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units......................... 11,812,002 4,459,200 5,248,401 2,152,749 36,238,986 20,620,582
Net asset value of units redeemed
or used to meet contract
obligations...................... (2,656,849) (952,864) (1,072,152) (454,428) (9,726,108) (4,735,332)
----------- ---------- ---------- ---------- ----------- -----------
Net increase from unit
transactions....................... 9,155,153 3,506,336 4,176,249 1,698,321 26,512,878 15,885,250
----------- ---------- ---------- ---------- ----------- -----------
Net increase in net assets........... 11,353,054 4,085,268 5,747,658 1,836,240 34,858,928 18,970,110
Net assets beginning of year......... 5,129,744 1,044,476 2,437,067 600,827 25,210,073 6,239,963
----------- ---------- ---------- ---------- ----------- -----------
Net assets end of year*.............. $16,482,798 $5,129,744 $ 8,184,725 $2,437,067 $60,069,001 $25,210,073
=========== ========== ========== ========== =========== ===========
Units outstanding beginning of
year............................... 319,002 80,766 191,743 52,194 1,532,486 465,095
Units issued during the year......... 647,931 303,412 326,703 176,984 1,945,611 1,382,408
Units redeemed during the year....... (145,843) (65,176) (69,043) (37,435) (523,427) (315,017)
----------- ---------- ---------- ---------- ----------- -----------
Units outstanding end of year........ 821,090 319,002 449,403 191,743 2,954,670 1,532,486
=========== ========== ========== ========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 538,907 $ 71,362 $ 705,833 $ 45,386 $ 2,719,621 $ 318,832
<CAPTION>
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------------ -----------------------
1997 1996 1997 1996
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)....... $ 98,833 $ (1,058) $ 111,190 $ 42,346
Net realized gain on investments... 135,511 23,372 35,931 180
Net increase (decrease) in
unrealized appreciation of
investments...................... (204,105) 96,691 12,532 25,863
---------- ---------- ---------- --------
Net increase in net assets resulting
from operations.................... 30,239 119,005 159,653 68,389
---------- ---------- ---------- --------
From unit transactions:
Net proceeds from the issuance
of units......................... 3,034,936 1,524,746 1,268,282 535,643
Net asset value of units redeemed
or used to meet contract
obligations...................... (717,365) (291,724) (319,664) (125,293)
---------- ---------- ---------- --------
Net increase from unit
transactions....................... 2,317,571 1,233,022 948,618 410,350
---------- ---------- ---------- --------
Net increase in net assets........... 2,347,810 1,352,027 1,108,271 478,739
Net assets beginning of year......... 1,731,444 379,417 831,448 352,709
---------- ---------- ---------- --------
Net assets end of year*.............. $4,079,254 $1,731,444 $1,939,719 $ 831,448
========== ========== ========== ========
Units outstanding beginning of
year............................... 128,820 31,566 66,709 31,730
Units issued during the year......... 211,751 120,205 95,695 45,756
Units redeemed during the year....... (50,105) (22,951) (24,129) (10,777)
---------- ---------- ---------- --------
Units outstanding end of year........ 290,466 128,820 138,275 66,709
========== ========== ========== ========
- ---------------
* Includes undistributed net
investment income of: $ 115,713 $ 16,880 $ 160,937 $ 49,747
</TABLE>
See notes to financial statements.
11
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support 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
Universal 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 68 to 102 and 105 to 142,
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 1997
aggregated $10,793,622.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts)
of aggregate average daily net assets. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
12
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1997 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------- --------- ------------ --------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares........................ 20,860 28,432 16,153 7,418 60,241 85,289
Amount........................ $483,575 $ 480,537 $168,956 $ 87,403 $ 838,945 $ 85,289
-------- -------- -------- -------- --------- --------
Shares acquired:
Shares........................ 1,812 1,865 2,121 395 4,933 18,415
Amount........................ $ 59,559 $ 47,176 $ 22,875 $ 5,012 $ 94,559 $ 18,415
Shares received for reinvestment
of dividends:
Shares........................ 2,038 3,766 1,007 483 5,055 4,176
Amount........................ $ 57,504 $ 80,960 $ 10,378 $ 5,654 $ 84,416 $ 4,176
Shares redeemed:
Shares........................ (2,589) (8,024) (5,204) (3,051) (16,315) (32,317)
Amount........................ $(54,391) $(121,259) $(54,045) $(35,014) $ (211,325) $(32,317)
-------- -------- -------- -------- --------- --------
Net change:
Shares........................ 1,261 (2,393) (2,076) (2,173) (6,327) (9,726)
Amount........................ $ 62,672 $ 6,877 $(20,792) $(24,348) $ (32,350) $ (9,726)
-------- -------- -------- -------- --------- --------
Shares end of year:
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
======== ======== ======== ======== ========= ========
</TABLE>
13
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1997
consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
MONY SERIES FUND, INC. ------------------------------------------------------------------
------------------------------------------------- HIGH
INTERMEDIATE LONG TERM GOVERNMENT MONEY INTERNATIONAL YIELD
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ------------ ----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares
beginning
of year:
Shares... 8,287 47,861 27,661 4,349,240 177,746 120,528 734,773 286,189 150,898
Amount... $ 88,592 $ 592,645 $ 285,560 $ 4,349,240 $ 4,748,651 $ 2,362,738 $22,951,520 $ 1,634,862 $ 805,224
-------- --------- --------- ------------ ----------- ---------- ----------- ---------- ----------
Shares
acquired:
Shares... 17,072 40,961 30,184 23,927,159 377,731 219,786 977,516 509,835 284,392
Amount... $185,860 $ 521,268 $ 320,872 $ 23,927,159 $12,405,871 $ 5,645,121 $38,118,419 $ 3,303,502 $1,575,254
Shares
received
for
reinvestment
of
dividends:
Shares... 591 3,615 1,373 135,531 15,523 26,027 66,677 19,476 17,799
Amount... $ 6,095 $ 42,293 $ 14,009 $ 135,531 $ 544,698 $ 694,933 $ 2,719,101 $ 120,361 $ 121,077
Shares
redeemed:
Shares... (4,874) (22,902) (13,451) (24,713,256) (101,270) (59,797) (305,965) (155,426) (113,383)
Amount... $(51,442) $(285,745) $(138,374) $(24,713,256) $(2,581,752) $(1,160,613) $(9,087,421) $ (871,948) $ (600,592)
-------- --------- --------- ------------ ----------- ---------- ----------- ---------- ----------
Net
change:
Shares... 12,789 21,674 18,106 (650,566) 291,984 186,016 738,228 373,885 188,808
Amount... $140,513 $ 277,816 $ 196,507 $ (650,566) $10,368,817 $ 5,179,441 $31,750,099 $ 2,551,915 $1,095,739
-------- --------- --------- ------------ ----------- ---------- ----------- ---------- ----------
Shares end
of year:
Shares... 21,076 69,535 45,767 3,698,674 469,730 306,544 1,473,001 660,074 339,706
Amount... $229,105 $ 870,461 $ 482,067 $ 3,698,674 $15,117,468 $ 7,542,179 $54,701,619 $ 4,186,777 $1,900,963
======== ========= ========= ============ =========== ========== =========== ========== ==========
</TABLE>
14
<PAGE> 17
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L -- Variable Life/Variable
Universal Life:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L -- Variable Life/Variable Universal Life
(comprising, respectively, the Variable Life's Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market Subaccounts
and the Variable Universal Life's Intermediate Term Bond, Long Term Bond,
Government Securities, Money Market, Equity, Small Cap, Managed, International
Growth and High Yield Bond Subaccounts) as of December 31, 1997, the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended. These
financial statements are the responsibility of MONY America's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L -- Variable
Life/Variable Universal Life as of December 31, 1997, the results of their
operations and the changes in their net assets for each of the periods referred
to above, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
15
<PAGE> 18
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------
MONEY INTERNATIONAL HIGH YIELD
MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)........ $843,855 $ 12,750 $220,732 $438,300 $ 112,775 $157,449
======== ======= ======== ======== ======== ========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)................................ $843,855 $ 0 $ 0 $ 0 $ 0 $ 0
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................... 0 13,000 209,725 421,630 109,846 156,825
Amount due from MONY Series Fund,
Inc............................... 2,432 0 0 0 0 0
-------- ------- -------- -------- -------- --------
Total assets.............. 846,287 13,000 209,725 421,630 109,846 156,825
-------- ------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY America.......... 2,432 0 0 0 0 0
-------- ------- -------- -------- -------- --------
Net assets.......................... $843,855 $ 13,000 $209,725 $421,630 $ 109,846 $156,825
======== ======= ======== ======== ======== ========
Net assets consist of:
Contractholders' net
payments..................... $868,575 $ 12,812 $203,828 $421,745 $ 110,374 $156,573
Cost of insurance and mortality
& expense risk withdrawals
(Note 3)..................... (37,708) (534) (1,101) (2,693) (787) (947)
Undistributed net investment
income....................... 12,988 431 17,837 19,108 3,248 1,806
Accumulated net realized gain
(loss) on investments........ 0 41 168 140 (60) 17
Unrealized appreciation
(depreciation) of
investments.................. 0 250 (11,007) (16,670) (2,929) (624)
-------- ------- -------- -------- -------- --------
Net assets.......................... $843,855 $ 13,000 $209,725 $421,630 $ 109,846 $156,825
======== ======= ======== ======== ======== ========
Number of units outstanding*........ 83,085 1,232 18,628 40,391 12,091 14,882
-------- ------- -------- -------- -------- --------
Net asset value per unit
outstanding*...................... $ 10.16 $ 10.55 $ 11.26 $ 10.44 $ 9.08 $ 10.54
======== ======= ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 19
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL
LIFE
------------------------------------------
WORLDWIDE
CAPITAL STOCK EMERGING
APPRECIATION INDEX MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................................... $157,383 $ 12,915 $ 16,799
======== ======= =======
Investments in Dreyfus at net asset value (Note 2)............. $155,956 $ 12,969 $ 0
Investments in Van Eck Worldwide Trust at net asset value (Note
2)........................................................... 0 0 12,879
-------- ------- -------
Net assets..................................................... $155,956 $ 12,969 $ 12,879
======== ======= =======
Net assets consist of:
Contractholders' net payments............................. $157,033 $ 12,938 $ 17,328
Cost of insurance and mortality & expense risk withdrawals
(Note 3)................................................ (936) (533) (468)
Undistributed net investment income....................... 1,295 496 0
Accumulated net realized gain (loss) on investments....... (9) 14 (61)
Unrealized appreciation (depreciation) of investments..... (1,427) 54 (3,920)
-------- ------- -------
Net assets..................................................... $155,956 $ 12,969 $ 12,879
======== ======= =======
Number of units outstanding*................................... 15,519 1,244 1,829
-------- ------- -------
Net asset value per unit outstanding*.......................... $ 10.05 $ 10.42 $ 7.04
======== ======= =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 20
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------------------
MONEY INTERNATIONAL HIGH YIELD
MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 10, 1997* JULY 23, 1997* JULY 23, 1997* JULY 23, 1997* JULY 23, 1997* JULY 23, 1997*
THROUGH THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997 1997 1997
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248 $1,806
--------- ------ -------- -------- ------- ------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales.... 1,130,952 1,169 2,372 4,593 796 1,560
Cost of shares sold.... 1,130,952 1,128 2,204 4,453 856 1,543
--------- ------ -------- -------- ------- ------
Net realized gain (loss)
on investments......... 0 41 168 140 (60) 17
Net increase (decrease)
in unrealized
appreciation of
investments............ 0 250 (11,007) (16,670) (2,929) (624)
--------- ------ -------- -------- ------- ------
Net realized and
unrealized gain (loss)
on investments......... 0 291 (10,839) (16,530) (2,989) (607)
--------- ------ -------- -------- ------- ------
Net increase in net
assets resulting from
operations............. $ 12,988 $ 722 $ 6,998 $ 2,578 $ 259 $1,199
========= ====== ======== ======== ======= ======
</TABLE>
- ---------------
*Commencement of operations.
See notes to financial statements.
F-5
<PAGE> 21
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------
CAPITAL STOCK WORLDWIDE
APPRECIATION INDEX EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 23, 1997* JULY 23, 1997* JULY 23, 1997*
THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997
-------------- -------------- ----------------
<S> <C> <C> <C>
Dividend income....................................... $ 1,295 $ 496 $ 0
------- ------ -------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales................................. 1,526 1,161 473
Cost of shares sold................................. 1,535 1,147 534
------- ------ -------
Net realized gain (loss) on investments............... (9) 14 (61)
Net increase (decrease) in unrealized appreciation of
investment.......................................... (1,427) 54 (3,920)
------- ------ -------
Net realized and unrealized gain (loss) on
investments......................................... (1,436) 68 (3,981)
------- ------ -------
Net increase (decrease) in net assets resulting from
operations.......................................... $ (141) $ 564 $ (3,981)
======= ====== =======
</TABLE>
- ---------------
*Commencement of operations.
See notes to financial statements.
F-6
<PAGE> 22
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------
MONEY INTERNATIONAL
MARKET EQUITY SMALL CAP MANAGED GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- --------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 10, 1997** JULY 23, 1997** JULY 23, 1997** JULY 23, 1997** JULY 23, 1997**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997 1997
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income............... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248
Net realized gain (loss) on
investments....................... 0 41 168 140 (60)
Net increase (decrease) in
unrealized appreciation of
investments....................... 0 250 (11,007) (16,670) (2,929)
----------- ------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations........... 12,988 722 6,998 2,578 259
----------- ------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units............................. 1,961,819 13,447 205,099 423,645 110,383
Net asset value of units redeemed or
used to meet contract
obligations....................... (1,130,952) (1,169) (2,372) (4,593) (796)
----------- ------- -------- -------- --------
Net increase from unit transactions... 830,867 12,278 202,727 419,052 109,587
----------- ------- -------- -------- --------
Net increase in net assets............ 843,855 13,000 209,725 421,630 109,846
Net assets beginning of period........ 0 0 0 0 0
----------- ------- -------- -------- --------
Net assets end of period*............. $ 843,855 $13,000 $ 209,725 $ 421,630 $ 109,846
=========== ======= ======== ======== ========
Units outstanding beginning of
period.............................. 0 0 0 0 0
Units issued during the period........ 194,816 1,345 18,848 40,836 12,113
Units redeemed during the period...... (111,731) (113) (220) (445) (22)
----------- ------- -------- -------- --------
Units outstanding end of period....... 83,085 1,232 18,628 40,391 12,091
=========== ======= ======== ======== ========
- ---------------
*Includes undistributed net
investment income of:............... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248
**Commencement of operations.
<CAPTION>
HIGH YIELD CAPITAL STOCK WORLDWIDE
BOND APPRECIATION INDEX EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 23, 1997** JULY 23, 1997** JULY 23, 1997** JULY 23, 1997**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............... $ 1,806 $ 1,295 $ 496 $ 0
Net realized gain (loss) on
investments....................... 17 (9) 14 (61)
Net increase (decrease) in
unrealized appreciation of
investments....................... (624) (1,427) 54 (3,920)
--------
Net increase (decrease) in net assets
resulting from operations........... 1,199 (141) 564 (3,981)
--------
From unit transactions:
Net proceeds from the issuance of
units............................. 157,186 157,623 13,566 17,333
Net asset value of units redeemed or
used to meet contract
obligations....................... (1,560) (1,526) (1,161) (473)
--------
Net increase from unit transactions... 155,626 156,097 12,405 16,860
--------
Net increase in net assets............ 156,825 155,956 12,969 12,879
Net assets beginning of period........ 0 0 0 0
--------
Net assets end of period*............. $ 156,825 $ 155,956 $ 12,969 $ 12,879
========
Units outstanding beginning of
period.............................. 0 0 0 0
Units issued during the period........ 15,033 15,672 1,357 1,883
Units redeemed during the period...... (151) (153) (113) (54)
--------
Units outstanding end of period....... 14,882 15,519 1,244 1,829
========
- ---------------
*Includes undistributed net
investment income of:............... $ 1,806 $ 1,295 $ 496 $ 0
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-7
<PAGE> 23
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. Six of the subaccounts have no assets
and nine invest 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. 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.
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 1997 aggregated $45,707.
F-8
<PAGE> 24
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
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.
4. INVESTMENTS
Investments in Corporate Sponsored Variable Universal Life at cost, at
December 31, 1997 consist of the following:
<TABLE>
<CAPTION>
MONEY INTERNATIONAL HIGH YIELD
MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................... 0 0 0 0 0 0
Amount..................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
-------- ------- -------- -------- -------- --------
Shares acquired:
Shares..................... 1,961,819 391 7,272 9,979 17,370 27,422
Amount..................... $ 1,961,819 $ 13,447 $205,099 $423,645 $ 110,383 $157,186
Shares received for
reinvestment of dividends:
Shares..................... 12,988 12 668 469 526 316
Amount..................... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248 $ 1,806
Shares redeemed:
Shares..................... (1,130,952) (33) (85) (109) (122) (273)
Amount..................... $(1,130,952) $ (1,128) $ (2,204) $ (4,453) $ (856) $ (1,543)
-------- ------- -------- -------- -------- --------
Net change:
Shares..................... 843,855 370 7,855 10,339 17,774 27,465
Amount..................... $ 843,855 $ 12,750 $220,732 $438,300 $ 112,775 $157,449
-------- ------- -------- -------- -------- --------
Shares end of period:
Shares..................... 843,855 370 7,855 10,339 17,774 27,465
Amount..................... $ 843,855 $ 12,750 $220,732 $438,300 $ 112,775 $157,449
======== ======= ======== ======== ======== ========
</TABLE>
F-9
<PAGE> 25
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Corporate Sponsored Variable Universal Life at cost, at
December 31, 1997 consist of the following:
<TABLE>
<CAPTION>
CAPITAL STOCK WORLDWIDE
APPRECIATION INDEX EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ----------------
<S> <C> <C> <C>
Shares beginning of period:
Shares............................................ 0 0 0
Amount............................................ $ 0 $ 0 $ 0
-------- ------- -------
Shares acquired:
Shares............................................ 5,598 529 1,205
Amount............................................ $157,623 $ 13,566 $ 17,333
Shares received for reinvestment of dividends:
Shares............................................ 47 19 0
Amount............................................ $ 1,295 $ 496 $ 0
Shares redeemed:
Shares............................................ (55) (45) (34)
Amount............................................ $ (1,535) $ (1,147) $ (534)
-------- ------- -------
Net change:
Shares............................................ 5,590 503 1,171
Amount............................................ $157,383 $ 12,915 $ 16,799
-------- ------- -------
Shares end of period:
Shares............................................ 5,590 503 1,171
Amount............................................ $157,383 $ 12,915 $ 16,799
======== ======= =======
</TABLE>
F-10
<PAGE> 26
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS OF
MONY LIFE INSURANCE COMPANY OF AMERICA:
We have audited the accompanying statutory statements of admitted assets,
liabilities, capital and surplus of MONY Life Insurance Company of America ("the
Company") as of December 31, 1997 and 1996, and the related statutory statements
of operations, capital and surplus, and cash flows for the years then ended.
These statutory financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
The Company presents its financial statements in conformity with the
accounting practices prescribed or permitted by the Insurance Department of the
State of Arizona ("statutory"), which is a comprehensive basis of accounting
other than generally accepted accounting principles ("GAAP"). As explained in
Note 2 to the financial statements, the accounting practices used by the Company
vary from generally accepted accounting principles, and the effects of these
variances are material.
In our opinion, because of the effects of the matter discussed in the
preceding paragraph, the statutory financial statements referred to above do not
present fairly, in conformity with GAAP, the financial position of the Company
as of December 31, 1997 and 1996, or the results of its operations and its cash
flows, for the years then ended.
In our opinion, however, the statutory financial statements referred to
above present fairly, in all material respects, the admitted assets,
liabilities, capital and surplus of the Company as of December 31, 1997 and
1996, and the results of its operations and its cash flows for the years then
ended on the basis of accounting described in Note 2.
Our audits were conducted for the purpose of expressing an opinion on the
financial statements taken as a whole. The Supplemental Schedule of Selected
Financial Data is presented to comply with the National Association of Insurance
Commissioners' Annual Statement Instructions and is not a required part of the
basic financial statements. The Supplemental Schedule of Selected Financial Data
has been subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
COOPERS & LYBRAND L.L.P.
New York, New York
February 27, 1998
F-11
<PAGE> 27
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<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)............ $ 59,712 $ 34,880 $ 6,642 $ 12,694 $ 57,696 $ 30,472
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2).............. $ 78,828 $ 43,065 $ 7,061 $ 14,885 $ 80,473 $ 30,472
-------- -------- -------- -------- -------- --------
Net assets.............................. $ 78,828 $ 43,065 $ 7,061 $ 14,885 $ 80,473 $ 30,472
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments......... $ 73,062 $ 45,390 $ 9,167 $ 16,264 $ 66,996 $ 51,361
Cost of insurance withdrawals (Note
3)................................. (52,273) (32,888) (12,767) (35,492) (36,906) (46,167)
Undistributed net investment income... 14,096 12,767 9,152 26,685 22,898 25,278
Accumulated net realized gain on
investments........................ 24,827 9,611 1,090 5,237 4,708 0
Unrealized appreciation of
investments........................ 19,116 8,185 419 2,191 22,777 0
-------- -------- -------- -------- -------- --------
Net assets.............................. $ 78,828 $ 43,065 $ 7,061 $ 14,885 $ 80,473 $ 30,472
======== ======== ======== ======== ======== ========
Number of units outstanding*............ 1,811 962 331 571 2,366 1,767
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*... $ 43.52 $ 44.75 $ 21.36 $ 26.07 $ 34.02 $ 17.25
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
16
<PAGE> 28
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)........................... $ 12,769 $2,176 $ 39,273 $169,650 $1,175,271
======= ====== ======= ======== ==========
Investments in Enterprise Accumulation Trust at net
asset value (Note 2)................................. $ 0 $ 0 $ 0 $ 0 $1,175,951
Investments in MONY Series Fund, Inc. at net asset
value (Note 2)....................................... 13,071 2,253 41,575 169,650 0
Amount due from MONY................................... 0 0 0 11,137 338
Amount due from MONY Series Fund, Inc.................. 0 0 0 8 0
Amount due from Enterprise Accumulation Trust.......... 0 0 0 0 292
------- ------ ------- -------- ----------
Total assets................................... 13,071 2,253 41,575 180,795 1,176,581
------- ------ ------- -------- ----------
LIABILITIES
Amount due to MONY..................................... 0 0 0 8 292
Amount due to MONY Series Fund, Inc.................... 0 0 0 11,137 0
Amount due to Enterprise Accumulation Trust............ 0 0 0 0 338
------- ------ ------- -------- ----------
Total liabilities.............................. 0 0 0 11,145 630
------- ------ ------- -------- ----------
Net assets............................................. $ 13,071 $2,253 $ 41,575 $169,650 $1,175,951
======= ====== ======= ======== ==========
Net assets consist of:
Contractholders' net payments........................ $ 13,868 $2,780 $ 40,624 $177,277 $1,201,571
Cost of insurance withdrawals (Note 3)............... (1,099) (631) (2,199) (10,640) (95,632)
Undistributed/accumulated net investment income
(loss)............................................. (32) 0 890 3,013 36,569
Accumulated net realized gain (loss) on
investments........................................ 32 27 (42) 0 32,763
Unrealized appreciation (depreciation) of
investments........................................ 302 77 2,302 0 680
------- ------ ------- -------- ----------
Net assets............................................. $ 13,071 $2,253 $ 41,575 $169,650 $1,175,951
======= ====== ======= ======== ==========
Number of units outstanding*........................... 1,234 211 3,719 16,142 93,188
------- ------ ------- -------- ----------
Net asset value per unit outstanding*.................. $ 10.59 $10.69 $ 11.18 $ 10.51 $ 12.62
======= ====== ======= ======== ==========
<CAPTION>
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)........................... $221,696 $2,347,957 $181,455 $ 96,548
======== ========== ======== =======
Investments in Enterprise Accumulation Trust at net
asset value (Note 2)................................. $222,289 $2,351,256 $171,237 $ 97,797
Investments in MONY Series Fund, Inc. at net asset
value (Note 2)....................................... 0 0 0 0
Amount due from MONY................................... 79 510 121 72
Amount due from MONY Series Fund, Inc.................. 0 0 0 0
Amount due from Enterprise Accumulation Trust.......... 114 3,704 252 128
-------- ---------- -------- -------
Total assets................................... 222,482 2,355,470 171,610 97,997
-------- ---------- -------- -------
LIABILITIES
Amount due to MONY..................................... 114 3,704 252 128
Amount due to MONY Series Fund, Inc.................... 0 0 0 0
Amount due to Enterprise Accumulation Trust............ 79 510 121 72
-------- ---------- -------- -------
Total liabilities.............................. 193 4,214 373 200
-------- ---------- -------- -------
Net assets............................................. $222,289 $2,351,256 $171,237 $ 97,797
======== ========== ======== =======
Net assets consist of:
Contractholders' net payments........................ $219,317 $2,403,572 $183,398 $ 97,316
Cost of insurance withdrawals (Note 3)............... (27,296) (210,449) (12,894) (6,828)
Undistributed/accumulated net investment income
(loss)............................................. 18,382 100,018 4,481 4,369
Accumulated net realized gain (loss) on
investments........................................ 11,293 54,816 6,470 1,691
Unrealized appreciation (depreciation) of
investments........................................ 593 3,299 (10,218) 1,249
-------- ---------- -------- -------
Net assets............................................. $222,289 $2,351,256 $171,237 $ 97,797
======== ========== ======== =======
Number of units outstanding*........................... 14,918 178,819 16,311 8,584
-------- ---------- -------- -------
Net asset value per unit outstanding*.................. $ 14.90 $ 13.15 $ 10.50 $ 11.39
======== ========== ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
17
<PAGE> 29
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
-----------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income......................... $ 5,414 $ 4,188 $ 384 $ 836 $ 5,526 $ 1,578
Mortality and expense risk charges (Note
3).................................... (443) (251) (41) (84) (452) (184)
------- ------- ----- ------- ------- -------
Net investment income................... 4,971 3,937 343 752 5,074 1,394
------- ------- ----- ------- ------- -------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales................... 14,275 12,118 504 1,123 3,828 2,858
Cost of shares sold................... (8,731) (8,787) (477) (1,057) (2,343) (2,858)
------- ------- ----- ------- ------- -------
Net realized gain on investments........ 5,544 3,331 27 66 1,485 0
Net increase in unrealized appreciation
of investments........................ 7,657 3,274 97 884 9,311 0
------- ------- ----- ------- ------- -------
Net realized and unrealized gain on
investments........................... 13,201 6,605 124 950 10,796 0
------- ------- ----- ------- ------- -------
Net increase in net assets resulting
from operations....................... $ 18,172 $ 10,542 $ 467 $ 1,702 $ 15,870 $ 1,394
======= ======= ===== ======= ======= =======
</TABLE>
See notes to financial statements.
18
<PAGE> 30
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------ ------------ ------------ ------------ ------------
FOR THE PERIOD FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
MARCH 24, 1997** ENDED ENDED ENDED ENDED ENDED
THROUGH DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
DECEMBER 31, 1997 1997 1997 1997 1997 1997
----------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income...................... $ 0 $ 9 $ 1,064 $ 3,211 $ 38,940 $ 18,805
Mortality and expense risk charges
(Note 3)........................... (32) (9) (172) (467) (3,058) (684)
------- ------- ----------- --------- -------- ---------
Net investment income (loss)......... (32) 0 892 2,744 35,882 18,121
------- ------- ----------- --------- -------- ---------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales................ 1,236 1,178 3,178 1,869,084 231,222 53,290
Cost of shares sold................ (1,204) (1,151) (3,220) (1,869,084) (198,296) (42,001)
------- ------- ----------- --------- -------- ---------
Net realized gain (loss) on
investments........................ 32 27 (42) 0 32,926 11,289
Net increase (decrease) in unrealized
appreciation of investments........ 302 77 2,367 0 1,377 583
------- ------- ----------- --------- -------- ---------
Net realized and unrealized gain
(loss) on investments.............. 334 104 2,325 0 34,303 11,872
------- ------- ----------- --------- -------- ---------
Net increase in net assets resulting
from operations.................... $ 302 $ 104 $ 3,217 $ 2,744 $ 70,185 $ 29,993
======= ======= =========== ========= ======== =========
<CAPTION>
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ ------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997
------------ ------------ ------------
<S> <C> <C> <C>
Dividend income...................... $ 106,305 $ 5,055 $ 4,750
Mortality and expense risk charges
(Note 3)........................... (7,473) (624) (382)
-------- --------
Net investment income (loss)......... 98,832 4,431 4,368
-------- --------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales................ 428,261 55,974 43,396
Cost of shares sold................ (373,390) (49,504) (41,705)
-------- --------
Net realized gain (loss) on
investments........................ 54,871 6,470 1,691
Net increase (decrease) in unrealized
appreciation of investments........ 5,802 (10,379) 1,248
-------- --------
Net realized and unrealized gain
(loss) on investments.............. 60,673 (3,909) 2,939
-------- --------
Net increase in net assets resulting
from operations.................... $ 159,505 $ 522 $ 7,307
======== ========
</TABLE>
- ---------------
** Commencement of operations.
See notes to financial statements.
19
<PAGE> 31
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
--------------------------------------------------------------------------
LONG
INTERMEDIATE TERM
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT SUB
ACCOUNT
-------------------- ------------------- ---------------- -------
1997 1996 1997 1996 1997 1996 1997
-------- -------- -------- ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ 4,971 $ (381) $ 3,937 $ (128) $ 343 $ (39) $ 752
Net realized gain on investments...................... 5,544 6,197 3,331 1,851 27 19 66
Net increase (decrease) in unrealized appreciation of
investments......................................... 7,657 6,121 3,274 3,722 97 218 884
-------- -------- -------- -------
Net increase (decrease) in net assets resulting from
operations............................................ 18,172 11,937 10,542 5,445 467 198 1,702
-------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of units............... 15,902 7,362 10,731 6,575 407 372 618
Net asset value of units redeemed or used to meet
contract obligations................................ (13,078) (20,999) (11,293) (8,207) (463) (432) (1,039)
-------- -------- -------- -------
Net increase (decrease) from unit transactions.......... 2,824 (13,637) (562) (1,632) (56) (60) (421)
-------- -------- -------- -------
Net increase (decrease) in net assets................... 20,996 (1,700) 9,980 3,813 411 138 1,281
Net assets beginning of year............................ 57,832 59,532 33,085 29,272 6,650 6,512 13,604
-------- -------- -------- -------
Net assets end of year*................................. $ 78,828 $ 57,832 $ 43,065 $33,085 $7,061 $6,650 $14,885
======== ======== ======== =======
Units outstanding beginning of year..................... 1,726 2,137 965 1,016 333 336 588
Units issued during the year............................ 428 241 282 213 20 19 26
Units redeemed during the year.......................... (343) (652) (285) (264) (22) (22) (43)
-------- -------- -------- -------
Units outstanding end of year........................... 1,811 1,726 962 965 331 333 571
======== ======== ======== =======
- ---------------
* Includes undistributed net investment income of: $ 14,096 $ 9,125 $ 12,767 $ 8,830 $9,152 $8,809 $26,685
<CAPTION>
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
------------------ ------------------
1996 1997 1996 1997 1996
------- ------- ------- ------- -------
<S> <C<C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ (80) $ 5,074 $ (373) $ 1,394 $ 1,372
Net realized gain on investments...................... 33 1,485 1,052 0 0
Net increase (decrease) in unrealized appreciation of
investments......................................... (93) 9,311 7,350 0 0
Net increase (decrease) in net assets resulting from
operations............................................ (140) 15,870 8,029 1,394 1,372
From unit transactions:
Net proceeds from the issuance of units............... 608 2,162 2,620 967 184
Net asset value of units redeemed or used to meet
contract obligations................................ (985) (3,376) (3,238) (2,652) (2,285)
Net increase (decrease) from unit transactions.......... (377) (1,214) (618) (1,685) (2,101)
Net increase (decrease) in net assets................... (517) 14,656 7,411 (291) (729)
Net assets beginning of year............................ 14,121 65,817 58,406 30,763 31,492
Net assets end of year*................................. $13,604 $80,473 $65,817 $30,472 $30,763
Units outstanding beginning of year..................... 605 2,404 2,427 1,867 1,997
Units issued during the year............................ 28 69 103 59 12
Units redeemed during the year.......................... (45) (107) (126) (159) (142)
Units outstanding end of year........................... 588 2,366 2,404 1,767 1,867
- ---------------
* Includes undistributed net investment income of: $25,933 $22,898 $17,824 $25,278 $23,884
</TABLE>
See notes to financial statements.
20
<PAGE> 32
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE TERM LONG TERM
SECURITIES BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ---------------------------- ----------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 24, FOR THE YEAR DECEMBER 6, FOR THE YEAR DECEMBER 6,
1997** THROUGH ENDED 1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1996 1997 1996
-------------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ (32) $ 0 $ 0 $ 892 $ (2)
Net realized gain (loss) on investments............... 32 27 0 (42) 0
Net increase (decrease) in unrealized appreciation of
investments......................................... 302 77 0 2,367 (65)
------- ------ --- ------- -------
Net increase (decrease) in net assets resulting from
operations............................................ 302 104 0 3,217 (67)
------- ------ --- ------- -------
From unit transactions:
Net proceeds from the issuance of units............... 13,868 2,923 43 28,471 12,153
Net asset value of units redeemed or used to meet
contract obligations................................ (1,099) (813) (4) (2,195) (4)
------- ------ --- ------- -------
Net increase from unit transactions..................... 12,769 2,110 39 26,276 12,149
------- ------ --- ------- -------
Net increase in net assets.............................. 13,071 2,214 39 29,493 12,082
Net assets beginning of period.......................... 0 39 0 12,082 0
------- ------ --- ------- -------
Net assets end of period*............................... $ 13,071 $2,253 $ 39 $ 41,575 $ 12,082
======= ====== === ======= =======
Units outstanding beginning of period................... 0 4 0 1,217 0
Units issued during the period.......................... 1,336 286 4 2,712 1,217
Units redeemed during the period........................ (102) (79) 0 (210) 0
------- ------ --- ------- -------
Units outstanding end of period......................... 1,234 211 4 3,719 1,217
======= ====== === ======= =======
- ---------------
* Includes undistributed/accumulated net investment
income (loss) of: $ (32) $ 0 $ 0 $ 890 $ (2)
** Commencement of operations.
<CAPTION>
MONEY
MARKET EQUITY
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR OCTOBER 17, FOR THE YEAR NOVEMBER 17,
ENDED 1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ 2,744 $ 269 $ 35,882 $ 687
Net realized gain (loss) on investments............... 0 0 32,926 (163)
Net increase (decrease) in unrealized appreciation of
investments......................................... 0 0 1,377 (697)
----------- ------- ---------- -------
Net increase (decrease) in net assets resulting from
operations............................................ 2,744 269 70,185 (173)
----------- ------- ---------- -------
From unit transactions:
Net proceeds from the issuance of units............... 1,828,075 221,062 1,163,129 54,842
Net asset value of units redeemed or used to meet
contract obligations................................ (1,728,100) (154,400) (111,523) (509)
----------- ------- ---------- -------
Net increase from unit transactions..................... 99,975 66,662 1,051,606 54,333
----------- ------- ---------- -------
Net increase in net assets.............................. 102,719 66,931 1,121,791 54,160
Net assets beginning of period.......................... 66,931 0 54,160 0
----------- ------- ---------- -------
Net assets end of period*............................... $ 169,650 $ 66,931 $1,175,951 $ 54,160
=========== ======= ========== =======
Units outstanding beginning of period................... 6,655 0 5,358 0
Units issued during the period.......................... 177,168 22,031 97,340 5,409
Units redeemed during the period........................ (167,681) (15,376) (9,510) (51)
----------- ------- ---------- -------
Units outstanding end of period......................... 16,142 6,655 93,188 5,358
=========== ======= ========== =======
- ---------------
* Includes undistributed/accumulated net investment
income (loss) of: $ 3,013 $ 269 $ 36,569 $ 687
** Commencement of operations.
</TABLE>
See notes to financial statements.
21
<PAGE> 33
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
-----------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR NOVEMBER 1, FOR THE YEAR OCTOBER 28,
ENDED 1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............................................. $ 18,121 $ 261 $ 98,832 $ 1,186
Net realized gains (losses) on investments........................ 11,289 4 54,871 (55)
Net increase (decrease) in unrealized appreciation of
investments..................................................... 583 10 5,802 (2,503)
-------- ------- ---------- --------
Net increase (decrease) in net assets resulting from operations..... 29,993 275 159,505 (1,372)
-------- ------- ---------- --------
From unit transactions:
Net proceeds from the issuance of units........................... 210,986 16,647 2,299,829 129,958
Net asset value of units redeemed or used to meet contract
obligations..................................................... (35,444) (168) (235,234) (1,430)
-------- ------- ---------- --------
Net increase from unit transactions................................. 175,542 16,479 2,064,595 128,528
-------- ------- ---------- --------
Net increase in net assets.......................................... 205,535 16,754 2,224,100 127,156
Net assets beginning of period...................................... 16,754 0 127,156 0
-------- ------- ---------- --------
Net assets end of period*........................................... $222,289 $ 16,754 $2,351,256 $127,156
======== ======= ========== ========
Units outstanding beginning of period............................... 1,611 0 11,951 0
Units issued during the period...................................... 15,917 1,628 185,804 12,086
Units redeemed during the period.................................... (2,610) (17) (18,936) (135)
-------- ------- ---------- --------
Units outstanding end of period..................................... 14,918 1,611 178,819 11,951
======== ======= ========== ========
- ---------------
* Includes undistributed/accumulated net investment income (loss)
of: $ 18,382 $ 261 $ 100,018 $ 1,186
** Commencement of operations.
<CAPTION>
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR NOVEMBER 21, FOR THE YEAR DECEMBER 6,
ENDED 1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............................................. $ 4,431 $ 50 $ 4,368 $ 1
Net realized gains (losses) on investments........................ 6,470 0 1,691 0
Net increase (decrease) in unrealized appreciation of
investments..................................................... (10,379) 161 1,248 1
-------- ------- ------- ----
Net increase (decrease) in net assets resulting from operations..... 522 211 7,307 2
-------- ------- ------- ----
From unit transactions:
Net proceeds from the issuance of units........................... 175,743 14,259 98,004 392
Net asset value of units redeemed or used to meet contract
obligations..................................................... (19,488) (10) (7,883) (25)
-------- ------- ------- ----
Net increase from unit transactions................................. 156,255 14,249 90,121 367
-------- ------- ------- ----
Net increase in net assets.......................................... 156,777 14,460 97,428 369
Net assets beginning of period...................................... 14,460 0 369 0
-------- ------- ------- ----
Net assets end of period*........................................... $171,237 $ 14,460 $ 97,797 $369
======== ======= ======= ====
Units outstanding beginning of period............................... 1,439 0 37 0
Units issued during the period...................................... 16,654 1,440 9,272 39
Units redeemed during the period.................................... (1,782) (1) (725) (2)
-------- ------- ------- ----
Units outstanding end of period..................................... 16,311 1,439 8,584 37
======== ======= ======= ====
- ---------------
* Includes undistributed/accumulated net investment income (loss)
of: $ 4,481 $ 50 $ 4,369 $ 1
** Commencement of operations.
</TABLE>
See notes to financial statements.
22
<PAGE> 34
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 68 to 102 and 105 to 142,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios 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 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 1997 aggregated $382,844.
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.
23
<PAGE> 35
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 December 31, 1997 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares............................ 1,904 1,412 607 1,059 3,658 30,763
Amount............................ $ 46,373 $ 28,174 $6,328 $12,297 $52,351 $ 30,763
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................ 508 455 38 49 112 989
Amount............................ $ 16,656 $ 11,305 $ 407 $ 618 $ 2,162 $ 989
Shares received for reinvestment of
dividends:
Shares............................ 192 195 37 71 331 1,578
Amount............................ $ 5,414 $ 4,188 $ 384 $ 836 $ 5,526 $ 1,578
Shares redeemed:
Shares............................ (420) (472) (47) (88) (197) (2,858)
Amount............................ $ (8,731) $ (8,787) $ (477) $(1,057) $(2,343) $ (2,858)
------- ------- ------ ------- ------- -------
Net change:
Shares............................ 280 178 28 32 246 (291)
Amount............................ $ 13,339 $ 6,706 $ 314 $ 397 $ 5,345 $ (291)
------- ------- ------ ------- ------- -------
Shares end of year:
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
======= ======= ====== ======= ======= =======
</TABLE>
24
<PAGE> 36
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1997
consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ----------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY INTERNATIONAL HIGH YIELD
SECURITIES TERM BOND BOND MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- ----------- ---------- --------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares
beginning
of
year:
Shares... 0 4 941 66,931 1,877 829 3,706 2,390 67
Amount... $ 0 $ 39 $12,147 $ 66,931 $ 54,857 $ 16,744 $ 129,659 $ 14,299 $ 368
------- ------- ------- ----------- ---------- ------- ---------- -------- --------
Shares
acquired:
Shares... 1,316 308 2,265 1,968,592 37,281 8,828 61,893 32,707 23,909
Amount... $ 13,973 $ 3,279 $29,282 $ 1,968,592 $1,279,770 $228,148 $2,485,383 $ 211,605 $133,135
Shares
received
for
reinvestment
of
dividends:
Shares... 0 1 91 3,211 1,110 704 2,607 818 840
Amount... $ 0 $ 9 $ 1,064 $ 3,211 $ 38,940 $ 18,805 $ 106,305 $ 5,055 $ 4,750
Shares
redeemed:
Shares... (115) (110) (249) (1,869,084) (6,755) (2,035) (10,549) (8,207) (7,688)
Amount... $ (1,204) $ (1,151) $(3,220) $(1,869,084) $ (198,296) $(42,001) $ (373,390) $ (49,504) $(41,705)
------- ------- ------- ----------- ---------- ------- ---------- -------- --------
Net
change:
Shares... 1,201 199 2,107 102,719 31,636 7,497 53,951 25,318 17,061
Amount... $ 12,769 $ 2,137 $27,126 $ 102,719 $1,120,414 $204,952 $2,218,298 $ 167,156 $ 96,180
------- ------- ------- ----------- ---------- ------- ---------- -------- --------
Shares
end of
year:
Shares... 1,201 203 3,048 169,650 33,513 8,326 57,657 27,708 17,128
Amount... $ 12,769 $ 2,176 $39,273 $ 169,650 $1,175,271 $221,696 $2,347,957 $ 181,455 $ 96,548
======= ======= ======= =========== ========== ======= ========== ======== ========
</TABLE>
25
<PAGE> 37
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account L (comprising, respectively, the Variable Life's Equity
Growth, Equity Income, Intermediate Term Bond, Long Term Bond, Diversified and
Money Market Subaccounts and the Variable Universal Life's Intermediate Term
Bond, Long Term Bond, Money Market, Equity, Small Cap, Managed, International
Growth, High Yield Bond and Government Securities Subaccounts) as of December
31, 1997; for the Variable Life's Subaccounts, the related statements of
operations for the year then ended and the statements of changes in net assets
for each of the two years in the period then ended; and for the Variable
Universal Life's Subaccounts, the related statements of operations of the
Intermediate Term Bond, Long Term Bond, Money Market, Equity, Small Cap,
Managed, International Growth, High Yield Bond Subaccounts for the year then
ended and for the Government Securities Subaccount for the period March 24, 1997
(commencement of operations) to December 31, 1997, and the statements of changes
in net assets for the Intermediate Term Bond, Long Term Bond, and High Yield
Subaccounts for which the period is from December 6, 1996 (commencement of
operations) to December 31, 1996 and the year ended December 31, 1997, the Money
Market Subaccount for which the period is from October 17, 1996 (commencement of
operations) to December 31, 1996 and the year ended December 31, 1997, the
Equity Subaccount for which the period is from November 17, 1996 (commencement
of operations) to December 31, 1996 and the year ended December 31, 1997, the
Small Cap Subaccount for which the period is from November 1, 1996 (commencement
of operations) to December 31, 1996 and the year ended December 31, 1997, the
Managed Subaccount for which the period is from October 28, 1996 (commencement
of operations) to December 31, 1996 and the year ended December 31, 1997, the
International Growth Subaccount for which the period is from November 21, 1996
(commencement of operations) to December 31, 1996 and the year ended December
31, 1997, and the Government Securities Subaccount for which the period is from
March 24, 1997 (commencement of operations) to December 31, 1997. These
financial statements are the responsibility of MONY's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account L as of December 31, 1997, the
results of their operations and the changes in their net assets for each of the
periods referred to above, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
26
<PAGE> 38
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $ 73,830 $ 88,932 $ 32,823 $ 89,341 $ 53,550
======== ======== ======= ======== =======
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. $130,027 $121,118 $ 34,682 $141,810 $ 53,550
-------- -------- ------- -------- -------
Total assets............................ $130,027 $121,118 $ 34,682 $141,810 $ 53,550
======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net payments................... $ 24,085 $ (2,231) $ 17,816 $ 33,624 $ 35,757
Cost of insurance withdrawals (Note 3).......... (8,413) (12,996) (6,124) (14,388) (3,286)
Undistributed net investment income............. 23,629 61,430 22,314 55,143 21,079
Accumulated net realized gain (loss) on
investments.................................. 34,529 42,729 (1,183) 14,962 0
Unrealized appreciation of investments.......... 56,197 32,186 1,859 52,469 0
-------- -------- ------- -------- -------
Net assets........................................ $130,027 $121,118 $ 34,682 $141,810 $ 53,550
======== ======== ======= ======== =======
Number of units outstanding*...................... 2,993 2,954 1,765 4,351 3,369
-------- -------- ------- -------- -------
Net asset value per unit outstanding*............. $ 43.45 $ 41.00 $ 19.65 $ 32.59 $ 15.90
======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
27
<PAGE> 39
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.......................... $ 9,410 $ 11,611 $ 1,909 $ 9,721 $ 2,716
Mortality and expense risk charges (Note
3)..................................... (1,025) (940) (288) (1,129) (448)
------- ------- ------ ------- ------
Net investment income.................... 8,385 10,671 1,621 8,592 2,268
------- ------- ------ ------- ------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................... 6,510 3,445 3,428 5,768 2,164
Cost of shares sold.................... (2,357) (2,297) (3,488) (3,677) (2,164)
------- ------- ------ ------- ------
Net realized gain (loss) on
investments............................ 4,153 1,148 (60) 2,091 0
Net increase in unrealized appreciation
of investments......................... 17,472 16,402 671 16,916 0
------- ------- ------ ------- ------
Net realized and unrealized gain on
investments............................ 21,625 17,550 611 19,007 0
------- ------- ------ ------- ------
Net increase in net assets resulting from
operations............................. $ 30,010 $ 28,221 $ 2,232 $ 27,599 $ 2,268
======= ======= ====== ======= ======
</TABLE>
See notes to financial statements.
28
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------- --------------------- --------------------
1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ 8,385 $ (795) $ 10,671 $ (680) $ 1,621 $ (305)
Net realized gain (loss) on investments............... 4,153 674 1,148 26,110 (60) (433)
Net increase (decrease) in unrealized appreciation of
investments......................................... 17,472 17,009 16,402 (7,802) 671 1,495
-------- -------- -------- -------- ------- --------
Net increase (decrease) in net assets resulting from
operations............................................ 30,010 16,888 28,221 17,628 2,232 757
-------- -------- -------- -------- ------- --------
From unit transactions:
Net proceeds from the issuance of units............... 324 244 0 1,110 462 273
Net asset value of units redeemed or used to meet
contract obligations................................ (1,805) (353) (884) (80,678) (1,168) (11,607)
-------- -------- -------- -------- ------- --------
Net decrease from unit transactions.................... (1,481) (109) (884) (79,568) (706) (11,334)
-------- -------- -------- -------- ------- --------
Net increase (decrease) in net assets.................. 28,529 16,779 27,337 (61,940) 1,526 (10,577)
Net assets beginning of year........................... 101,498 84,719 93,781 155,721 33,156 43,733
-------- -------- -------- -------- ------- --------
Net assets end of year*................................ $130,027 $101,498 $121,118 $ 93,781 $34,682 $ 33,156
======== ======== ======== ======== ======= ========
Units outstanding beginning of year.................... 3,027 3,031 2,978 5,872 1,802 2,443
Units issued during the year........................... 21 8 0 41 27 14
Units redeemed during the year......................... (55) (12) (24) (2,935) (64) (655)
-------- -------- -------- -------- ------- --------
Units outstanding end of year.......................... 2,993 3,027 2,954 2,978 1,765 1,802
======== ======== ======== ======== ======= ========
- ---------------
* Includes undistributed net investment income of: $ 23,629 $ 15,244 $ 61,430 $ 50,759 $22,314 $ 20,693
<CAPTION>
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- --------------------- --------------------
1996 1997 1996 1997 1996
-------------- -------- -------- ------- --------
<S> <<C> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ (69) $ 8,592 $ (925) $ 2,268 $ 2,251
Net realized gain (loss) on investments............... (2,624) 2,091 581 0 0
Net increase (decrease) in unrealized appreciation of
investments......................................... 218 16,916 14,096 0 0
------- -------- -------- ------- -------
Net increase (decrease) in net assets resulting from
operations............................................ (2,475) 27,599 13,752 2,268 2,251
------- -------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of units............... 1,724 646 440 177 196
Net asset value of units redeemed or used to meet
contract obligations................................ (48,707) (1,825) (1,094) (518) (11,945)
------- -------- -------- ------- -------
Net decrease from unit transactions.................... (46,983) (1,179) (654) (341) (11,749)
------- -------- -------- ------- -------
Net increase (decrease) in net assets.................. (49,458) 26,420 13,098 1,927 (9,498)
Net assets beginning of year........................... 49,458 115,390 102,292 51,623 61,121
------- -------- -------- ------- -------
Net assets end of year*................................ $ 0 $141,810 $115,390 $53,550 $ 51,623
======= ======== ======== ======= =======
Units outstanding beginning of year.................... 2,268 4,388 4,414 3,391 4,185
Units issued during the year........................... 42 32 19 12 16
Units redeemed during the year......................... (2,310) (69) (45) (34) (810)
------- -------- -------- ------- -------
Units outstanding end of year.......................... 0 4,351 4,388 3,369 3,391
======= ======== ======== ======= =======
- ---------------
* Includes undistributed net investment income of: $ 0 $ 55,143 $ 46,551 $21,079 $ 18,811
</TABLE>
See notes to financial statements.
29
<PAGE> 41
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 68 to 102 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
1997 aggregated $5,954.
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.
30
<PAGE> 42
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1997 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 year:
Shares...................................... 3,342 4,001 3,025 6,414 51,623
Amount...................................... $ 62,773 $ 77,997 $ 31,968 $79,837 $ 51,623
--------- --------- ------------ ----------- ---------
Shares acquired:
Shares...................................... 128 68 230 191 1,375
Amount...................................... $ 4,004 $ 1,621 $ 2,434 $ 3,460 $ 1,375
Shares received for reinvestment of dividends:
Shares...................................... 333 540 185 582 2,716
Amount...................................... $ 9,410 $ 11,611 $ 1,909 $ 9,721 $ 2,716
Shares redeemed:
Shares...................................... (199) (140) (321) (306) (2,164)
Amount...................................... $ (2,357) $ (2,297) $ (3,488) $(3,677) $ (2,164)
--------- --------- ------------ ----------- ---------
Net change:
Shares...................................... 262 468 94 467 1,927
Amount...................................... $ 11,057 $ 10,935 $ 855 $ 9,504 $ 1,927
--------- --------- ------------ ----------- ---------
Shares end of year:
Shares...................................... 3,604 4,469 3,119 6,881 53,550
Amount...................................... $ 73,830 $ 88,932 $ 32,823 $89,341 $ 53,550
======= ======= ========= ======== =======
</TABLE>
31
<PAGE> 43
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account S:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account S (comprising, respectively, the Equity Growth,
Equity Income, Intermediate Term Bond, Diversified and Money Market Subaccounts)
as of December 31, 1997, the related statements of operations for the year then
ended and the statements of changes in net assets for each of the two years in
the period then ended. We have also audited the statement of changes of the Long
Term Bond Subaccount for the year ended December 31, 1996. These financial
statements are the responsibility of MONY America's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account S as of December 31,
1997, the results of their operations and the changes in their net assets for
each of the periods referred to above, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
32
<PAGE> 44
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4).......................................... $ 33,686 $ 56,222
======= =========
Investments in MONY Series Fund, Inc. at net asset value (Note 2)..... $ 59,023 $ 84,851
------- ---------
Net assets............................................................ $ 59,023 $ 84,851
======= =========
Net assets consist of:
Contractholders' net payments....................................... $ 16,607 $ (141,660)
Cost of insurance withdrawals (Note 3).............................. (1,904) (66,105)
Undistributed net investment income................................. 16,186 150,475
Accumulated net realized gains on investments....................... 2,797 113,512
Unrealized appreciation of investments.............................. 25,337 28,629
------- ---------
Net assets............................................................ $ 59,023 $ 84,851
======= =========
Number of units outstanding*.......................................... 1,525 2,785
------- ---------
Net asset value per unit outstanding*................................. $ 38.72 $ 30.46
======= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
33
<PAGE> 45
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C>
Dividend income....................................................... $ 5,632 $ 5,793
Mortality and expense risk charges (Note 3)........................... (478) (705)
------- ---------
Net investment income................................................. 5,154 5,088
------- ---------
Realized and unrealized gain on investments (Note 2):
Proceeds from sales................................................. 520 1,098
Cost of shares sold................................................. (282) (722)
------- ---------
Net realized gain on investments...................................... 238 376
Net increase in unrealized appreciation of investments................ 8,275 10,931
------- ---------
Net realized and unrealized gain on investments....................... 8,513 11,307
------- ---------
Net increase in net assets resulting from operations.................. $ 13,667 $ 16,395
======= =========
</TABLE>
See notes to financial statements.
34
<PAGE> 46
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
------------------- ---------------------
1997 1996 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).............................. $ 5,154 $ (276) $ 5,088 $ (552)
Net realized gain on investments.......................... 238 207 376 268
Net increase in unrealized appreciation of investments ... 8,275 7,258 10,931 8,492
------- ------- -------- --------
Net increase in net assets resulting from operations........ 13,667 7,189 16,395 8,208
------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of units................... 0 0 0 0
Net asset value of units redeemed or used to meet contract
obligations............................................. (42) (207) (393) (527)
------- ------- -------- --------
Net decrease from unit transactions......................... (42) (207) (393) (527)
------- ------- -------- --------
Net increase in net assets.................................. 13,625 6,982 16,002 7,681
Net assets beginning of year................................ 45,398 38,416 68,849 61,168
------- ------- -------- --------
Net assets end of year*..................................... $59,023 $45,398 $ 84,851 $ 68,849
======= ======= ======== ========
Units outstanding beginning of year......................... 1,526 1,533 2,800 2,823
Units issued during the year................................ 0 0 0 0
Units redeemed during the year.............................. (1) (7) (15) (23)
------- ------- -------- --------
Units outstanding end of year............................... 1,525 1,526 2,785 2,800
======= ======= ======== ========
- ---------------
* Includes undistributed net investment income of: $16,186 $11,032 $150,475 $145,387
</TABLE>
See notes to financial statements.
35
<PAGE> 47
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 68 to 102 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 1997
aggregated $435.
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.
36
<PAGE> 48
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1997 consist
of the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of year:
Shares.................................................................. 1,936 3,827
Amount.................................................................. $ 28,336 $51,151
------- -------
Shares acquired:
Shares.................................................................. 0 0
Amount.................................................................. $ 0 $ 0
Shares received for reinvestment of dividends:
Shares.................................................................. 262 347
Amount.................................................................. $ 5,632 $ 5,793
Shares redeemed:
Shares.................................................................. (21) (57)
Amount.................................................................. $ (282) $ (722)
------- -------
Net change:
Shares.................................................................. 241 290
Amount.................................................................. $ 5,350 $ 5,071
------- -------
Shares end of year:
Shares.................................................................. 2,177 4,117
Amount.................................................................. $ 33,686 $56,222
======= =======
</TABLE>
37
<PAGE> 49
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account S:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account S (comprising, respectively, the Equity Income and
Diversified Subaccounts) as of December 31, 1997, the related statements of
operations for the year then ended and the statements of changes in net assets
for each of the two years in the period then ended. These financial statements
are the responsibility of MONY's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account S as of December 31, 1997, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
38
<PAGE> 50
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<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)...................... $ 984,605 $ 945,478 $34,084,201 $54,686,512 $1,184,974 $130,080,440 $20,107,823
========== ========== =========== =========== ========== ============ ===========
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... $1,500,365 $1,438,034 $35,861,201 $60,357,650 $1,673,300 $130,080,440 $20,983,471
Amount due from MONY
America................. 0 0 1,349 3,473 0 1,852,198 29
Amount due from MONY
Series Fund, Inc. ...... 6 0 7,583 8,865 24 18,717 2,929
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total assets...... 1,500,371 1,438,034 35,870,133 60,369,988 1,673,324 131,951,355 20,986,429
---------- ---------- ----------- ----------- ---------- ------------ -----------
LIABILITIES
Amount due to MONY
America................. 6 0 7,583 8,865 24 18,717 2,929
Amount due to MONY Series
Fund, Inc............... 0 0 1,349 3,473 0 1,852,198 29
---------- ---------- ----------- ----------- ---------- ------------ -----------
Total
liabilities..... 6 0 8,932 12,338 24 1,870,915 2,958
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets................ $1,500,365 $1,438,034 $35,861,201 $60,357,650 $1,673,300 $130,080,440 $20,983,471
========== ========== =========== =========== ========== ============ ===========
Net assets consist of:
Contractholders' net
payments.............. $ 281,230 $ 53,157 $28,232,151 $42,643,700 $ (63,374) $114,069,375 $19,377,411
Undistributed net
investment income..... 228,580 519,534 6,011,994 11,013,063 730,917 16,011,065 452,841
Accumulated net realized
gain (loss) on
investments........... 474,795 372,787 (159,944) 1,029,749 517,431 0 277,571
Unrealized appreciation
of investments........ 515,760 492,556 1,777,000 5,671,138 488,326 0 875,648
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net assets................ $1,500,365 $1,438,034 $35,861,201 $60,357,650 $1,673,300 $130,080,440 $20,983,471
========== ========== =========== =========== ========== ============ ===========
Number of units
outstanding*............ 37,580 37,519 1,941,792 2,645,732 55,440 8,585,010 1,761,542
---------- ---------- ----------- ----------- ---------- ------------ -----------
Net asset value per unit
outstanding*............ $ 39.92 $ 38.33 $ 18.47 $ 22.81 $ 30.18 $ 15.15 $ 11.91
========== ========== =========== =========== ========== ============ ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
39
<PAGE> 51
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<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)...... $353,820,012 $255,536,588 $1,777,336,359 $ 64,662,367 $56,709,738
============ ============ ============== =========== ===========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................. $441,299,198 $317,339,769 $2,312,921,552 $ 65,176,534 $58,871,661
Amount due from MONY America...... 50,356 18,364 90,834 2,196 414
Amount due from Enterprise
Accumulation Trust.............. 80,584 11,615 267,380 3,122 1,479
------------ ------------ -------------- ----------- -----------
Total assets............ 441,430,138 317,369,748 2,313,279,766 65,181,852 58,873,554
------------ ------------ -------------- ----------- -----------
LIABILITIES
Amount due to MONY America........ 80,584 11,615 267,380 3,122 1,479
Amount due to Enterprise
Accumulation Trust.............. 50,356 18,364 90,834 2,196 414
------------ ------------ -------------- ----------- -----------
Total liabilities....... 130,940 29,979 358,214 5,318 1,893
------------ ------------ -------------- ----------- -----------
Net assets........................ $441,299,198 $317,339,769 $2,312,921,552 $ 65,176,534 $58,871,661
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $279,663,113 $196,881,346 $1,262,187,746 $ 58,787,845 $50,416,401
Undistributed net investment
income....................... 19,341,725 39,243,879 163,883,632 1,628,241 5,579,860
Accumulated net realized gain on
investments.................. 54,815,174 19,411,363 351,264,981 4,246,281 713,477
Unrealized appreciation of
investments.................. 87,479,186 61,803,181 535,585,193 514,167 2,161,923
------------ ------------ -------------- ----------- -----------
Net assets........................ $441,299,198 $317,339,769 $2,312,921,552 $ 65,176,534 $58,871,661
============ ============ ============== =========== ===========
Number of units outstanding*...... 10,706,757 8,401,211 43,843,754 5,021,078 4,081,656
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 41.22 $ 37.77 $ 52.75 $ 12.98 $ 14.42
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
40
<PAGE> 52
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<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)............... $1,701,986 $1,253,838 $1,719,684 $2,921,414 $29,637,161
========== ========== ========== ========== ===========
Investments in OCC Accumulation Trust, at
net asset value (Note 2)................. $1,701,986 $1,286,515 $3,049,924 $4,088,659 $47,608,557
Amount due from OCC Accumulation Trust..... 0 0 25,168 0 31,071
---------- ---------- ---------- ---------- -----------
Total assets..................... 1,701,986 1,286,515 3,075,092 4,088,659 47,639,628
---------- ---------- ---------- ---------- -----------
LIABILITIES
Amount due to MONY America................. 0 0 25,168 0 31,071
---------- ---------- ---------- ---------- -----------
Net assets................................. $1,701,986 $1,286,515 $3,049,924 $4,088,659 $47,608,557
========== ========== ========== ========== ===========
Net assets consist of:
Contractholders' net payments............ $1,375,548 $ 871,885 $1,017,492 $2,466,472 $16,884,479
Undistributed net investment income...... 326,438 353,701 96,597 171,376 1,401,493
Accumulated net realized gain on
investments........................... 0 28,252 605,595 283,566 11,351,189
Unrealized appreciation of investments... 0 32,677 1,330,240 1,167,245 17,971,396
---------- ---------- ---------- ---------- -----------
Net assets................................. $1,701,986 $1,286,515 $3,049,924 $4,088,659 $47,608,557
========== ========== ========== ========== ===========
Number of units outstanding*............... 122,178 75,192 74,411 117,879 932,054
---------- ---------- ---------- ---------- -----------
Net asset value per unit outstanding*...... $ 13.93 $ 17.11 $ 40.99 $ 34.69 $ 51.08
========== ========== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
41
<PAGE> 53
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
------------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ------------ ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income............... $106,179 $ 148,017 $ 1,895,013 $ 3,136,904 $ 146,889 $ 6,788,047 $ 607,853
Mortality and expense risk
charges (Note 3)............ (17,221) (16,999) (427,192) (666,186) (23,878) (1,645,030) (214,819)
-------- --------- ----------- ------------ --------- ------------- -----------
Net investment income......... 88,958 131,018 1,467,821 2,470,718 123,011 5,143,017 393,034
-------- --------- ----------- ------------ --------- ------------- -----------
Realized and unrealized gain
on investments (Note 2):
Proceeds from sales......... 55,200 244,471 8,372,489 12,468,873 703,679 788,436,603 4,138,353
Cost of shares sold......... (33,431) (137,574) (8,085,554) (11,001,832) (470,085) (788,436,603) (4,046,217)
-------- --------- ----------- ------------ --------- ------------- -----------
Net realized gain on
investments................. 21,769 106,897 286,935 1,467,041 233,594 0 92,136
Net increase in unrealized
appreciation of
investments................. 228,905 112,714 383,054 2,326,867 41,876 0 518,951
-------- --------- ----------- ------------ --------- ------------- -----------
Net realized and unrealized
gain on investments......... 250,674 219,611 669,989 3,793,908 275,470 0 611,087
-------- --------- ----------- ------------ --------- ------------- -----------
Net increase in net assets
resulting from operations... $339,632 $ 350,629 $ 2,137,810 $ 6,264,626 $ 398,481 $ 5,143,017 $ 1,004,121
======== ========= =========== ============ ========= ============= ===========
</TABLE>
See notes to financial statements.
42
<PAGE> 54
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<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....................... $ 14,616,618 $ 26,987,250 $ 104,785,893 $ 1,926,290 $ 3,996,565
Mortality and expense risk charges
(Note 3)............................ (4,481,783) (2,887,071) (25,377,487) (754,671) (546,695)
------------ ------------ ------------- ------------ -----------
Net investment income................. 10,134,835 24,100,179 79,408,406 1,171,619 3,449,870
------------ ------------ ------------- ------------ -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales................. 72,220,351 39,894,047 457,425,449 18,298,568 8,419,722
Cost of shares sold................. (40,672,974) (27,693,191) (255,319,160) (15,131,932) (7,958,240)
------------ ------------ ------------- ------------ -----------
Net realized gain on investments...... 31,547,377 12,200,856 202,106,289 3,166,636 461,482
Net increase (decrease) in unrealized
appreciation of investments......... 34,785,044 43,551,752 125,071,710 (3,024,032) 1,157,688
------------ ------------ ------------- ------------ -----------
Net realized and unrealized gain on
investments......................... 66,332,421 55,752,608 327,177,999 142,604 1,619,170
------------ ------------ ------------- ------------ -----------
Net increase in net assets resulting
from operations..................... $ 76,467,256 $ 79,852,787 $ 406,586,405 $ 1,314,223 $ 5,069,040
============ ============ ============= ============ ===========
</TABLE>
See notes to financial statements.
43
<PAGE> 55
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<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............................... $ 115,863 $ 103,714 $ 123,628 $ 161,545 $ 1,984,204
Mortality and expense risk charges (Note 3)... (31,602) (20,786) (38,298) (48,000) (592,235)
----------- ---------- --------- --------- ----------
Net investment income......................... 84,261 82,928 85,330 113,545 1,391,969
----------- ---------- --------- --------- ----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales......................... 5,594,899 2,568,735 646,222 385,164 12,706,470
Cost of shares sold......................... (5,594,899) (2,585,930) (354,973) (279,748) (6,945,376)
----------- ---------- --------- --------- ----------
Net realized gain (loss) on investments....... 0 (17,195) 291,249 105,416 5,761,094
Net increase in unrealized appreciation of
investments................................. 0 22,568 311,925 482,224 1,865,204
----------- ---------- --------- --------- ----------
Net realized and unrealized gain on
investments................................. 0 5,373 603,174 587,640 7,626,298
----------- ---------- --------- --------- ----------
Net increase in net assets resulting from
operations.................................. $ 84,261 $ 88,301 $ 688,504 $ 701,185 $ 9,018,267
=========== ========== ========= ========= ==========
</TABLE>
See notes to financial statements.
44
<PAGE> 56
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-------------------------------------------------------------------
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ -----------
1997 1996 1997 1996 1997
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................... $ 88,958 $ (12,700) $ 131,018 $ (12,569) $ 1,467,821
Net realized gain (loss) on investments................ 21,769 92,019 106,897 81,521 286,935
Net increase (decrease) in unrealized appreciation of
investments.......................................... 228,905 101,576 112,714 130,528 383,054
---------- ---------- ---------- ---------- -----------
Net increase (decrease) in net assets resulting from
operations............................................. 339,632 180,895 350,629 199,480 2,137,810
---------- ---------- ---------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of units................ 64,958 173,420 10,553 84,957 7,883,206
Net asset value of units redeemed or used to meet
contract obligations................................. (18,731) (208,218) (196,802) (144,895) (7,423,806)
---------- ---------- ---------- ---------- -----------
Net increase (decrease) from unit transactions........... 46,227 (34,798) (186,249) (59,938) 459,400
---------- ---------- ---------- ---------- -----------
Net increase in net assets............................... 385,859 146,097 164,380 139,542 2,597,210
Net assets beginning of year............................. 1,114,506 968,409 1,273,654 1,134,112 33,263,991
---------- ---------- ---------- ---------- -----------
Net assets end of year*.................................. $1,500,365 $1,114,506 $1,438,034 $1,273,654 $35,861,201
========== ========== ========== ========== ===========
Units outstanding beginning of year...................... 36,033 37,368 43,089 45,391 1,916,050
Units issued during the year............................. 1,961 6,064 353 3,083 444,683
Units redeemed during the year........................... (414) (7,399) (5,923) (5,385) (418,941)
---------- ---------- ---------- ---------- -----------
Units outstanding end of year............................ 37,580 36,033 37,519 43,089 1,941,792
========== ========== ========== ========== ===========
- ---------------
* Includes undistributed net investment income of: $ 228,580 $ 139,622 $ 519,534 $ 388,516 $ 6,011,994
<CAPTION>
LONG TERM BOND
SUBACCOUNT
----------------------------
1996 1997 1996
----------- ------------ ------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)........................... $ (400,003) $ 2,470,718 $ (617,564)
Net realized gain (loss) on investments................ (325,039) 1,467,041 146,065
Net increase (decrease) in unrealized appreciation of
investments.......................................... 1,497,596 2,326,867 (365,732)
----------- ------------ ------------
Net increase (decrease) in net assets resulting from
operations............................................. 772,554 6,264,626 (837,231)
----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance of units................ 7,367,531 13,719,649 14,906,160
Net asset value of units redeemed or used to meet
contract obligations................................. (5,502,520) (10,658,828) (14,275,641)
----------- ------------ ------------
Net increase (decrease) from unit transactions........... 1,865,011 3,060,821 630,519
----------- ------------ ------------
Net increase in net assets............................... 2,637,565 9,325,447 (206,712)
Net assets beginning of year............................. 30,626,426 51,032,203 51,238,915
----------- ------------ ------------
Net assets end of year*.................................. $33,263,991 $ 60,357,650 $ 51,032,203
=========== ============ ============
Units outstanding beginning of year...................... 1,806,518 2,506,531 2,477,673
Units issued during the year............................. 435,583 653,780 761,674
Units redeemed during the year........................... (326,051) (514,579) (732,816)
----------- ------------ ------------
Units outstanding end of year............................ 1,916,050 2,645,732 2,506,531
=========== ============ ============
- ---------------
* Includes undistributed net investment income of: $ 4,544,173 $ 11,013,063 $ 8,542,345
</TABLE>
See notes to financial statements.
45
<PAGE> 57
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
-----------------------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ----------------------------- -------------------------
1997 1996 1997 1996 1997 1996
---------- ---------- ------------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).............. $ 123,011 $ (22,534) $ 5,143,017 $ 3,697,484 $ 393,034 $ (135,450)
Net realized gain on investments.......... 233,594 78,628 0 0 92,136 92,366
Net increase in unrealized appreciation of
investments............................. 41,876 166,348 0 0 518,951 360,512
---------- ---------- ------------- ------------- ----------- -----------
Net increase in net assets resulting from
operations................................ 398,481 222,442 5,143,017 3,697,484 1,004,121 317,428
---------- ---------- ------------- ------------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units... 42,121 108,458 771,270,721 579,470,083 9,322,729 9,252,639
Net asset value of units redeemed or used
to meet contract obligations............ (634,220) (270,309) (766,971,962) (553,816,098) (3,626,150) (2,761,464)
---------- ---------- ------------- ------------- ----------- -----------
Net increase (decrease) from unit
transactions.............................. (592,099) (161,851) 4,298,759 25,653,985 5,696,579 6,491,175
---------- ---------- ------------- ------------- ----------- -----------
Net increase (decrease) in net assets....... (193,618) 60,591 9,441,776 29,351,469 6,700,700 6,808,603
Net assets beginning of year................ 1,866,918 1,806,327 120,638,664 91,287,195 14,282,771 7,474,168
---------- ---------- ------------- ------------- ----------- -----------
Net assets end of year*..................... $1,673,300 $1,866,918 $ 130,080,440 $ 120,638,664 $20,983,471 $14,282,771
========== ========== ============= ============= =========== ===========
Units outstanding beginning of year......... 76,353 83,511 8,278,977 6,504,679 1,269,214 679,711
Units issued during the year................ 1,688 4,729 51,933,520 40,508,568 807,156 829,627
Units redeemed during the year.............. (22,601) (11,887) (51,627,487) (38,734,270) (314,828) (240,124)
---------- ---------- ------------- ------------- ----------- -----------
Units outstanding end of year............... 55,440 76,353 8,585,010 8,278,977 1,761,542 1,269,214
========== ========== ============= ============= =========== ===========
- ---------------
* Includes undistributed net investment
income of: $ 730,917 $ 607,906 $ 16,011,065 $ 10,868,048 $ 452,841 $ 59,807
</TABLE>
See notes to financial statements.
46
<PAGE> 58
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- --------------
1997 1996 1997 1996 1997
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................ $ 10,134,835 $ 990,518 $ 24,100,179 $ 763,292 $ 79,408,406
Net realized gain on investments.................... 31,547,377 13,064,079 12,200,856 2,016,987 202,106,289
Net increase (decrease) in unrealized appreciation
of investments.................................... 34,785,044 28,297,136 43,551,752 11,474,221 125,071,710
------------ ------------ ------------ ------------ --------------
Net increase in net assets resulting from
operations.......................................... 76,467,256 42,351,733 79,852,787 14,254,500 406,586,405
------------ ------------ ------------ ------------ --------------
From unit transactions:
Net proceeds from the issuance of units............. 153,834,908 115,219,042 103,297,248 41,715,641 626,988,679
Net asset value of units redeemed or used to meet
contract obligations.............................. (61,472,849) (30,630,812) (33,906,004) (33,868,192) (409,563,542)
------------ ------------ ------------ ------------ --------------
Net increase from unit transactions.................. 92,362,059 84,588,230 69,391,244 7,847,449 217,425,137
------------ ------------ ------------ ------------ --------------
Net increase in net assets........................... 168,829,315 126,939,963 149,244,031 22,101,949 624,011,542
Net assets beginning of year......................... 272,469,883 145,529,920 168,095,738 145,993,789 1,688,910,010
------------ ------------ ------------ ------------ --------------
Net assets end of year*.............................. $441,299,198 $272,469,883 $317,339,769 $168,095,738 $2,312,921,552
============ ============ ============ ============ ==============
Units outstanding beginning of year.................. 8,212,227 5,426,511 6,346,453 6,055,472 39,371,381
Units issued during the year......................... 4,173,627 3,827,209 3,110,995 1,644,107 13,252,564
Units redeemed during the year....................... (1,679,097) (1,041,493) (1,056,237) (1,353,126) (8,780,191)
------------ ------------ ------------ ------------ --------------
Units outstanding end of year........................ 10,706,757 8,212,227 8,401,211 6,346,453 43,843,754
============ ============ ============ ============ ==============
- ---------------
* Includes undistributed net investment income of: $ 19,341,725 $ 9,206,890 $ 39,243,879 $ 15,143,700 $ 163,883,632
<CAPTION>
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
-------------------------- -------------------------
1996 1997 1996 1997 1996
-------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........................ $ (1,088,954) $ 1,171,619 $ (223,776) $ 3,449,870 $ 1,605,300
Net realized gain on investments.................... 78,226,876 3,166,636 891,767 461,482 153,762
Net increase (decrease) in unrealized appreciation
of investments.................................... 198,383,114 (3,024,032) 2,753,189 1,157,688 860,925
-------------- ------------ ----------- ----------- -----------
Net increase in net assets resulting from
operations.......................................... 275,521,036 1,314,223 3,421,180 5,069,040 2,619,987
-------------- ------------ ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units............. 496,311,902 35,179,809 28,954,972 30,370,695 17,522,375
Net asset value of units redeemed or used to meet
contract obligations.............................. (192,035,547) (16,397,762) (3,642,450) (6,983,741) (3,512,778)
-------------- ------------ ----------- ----------- -----------
Net increase from unit transactions.................. 304,276,355 18,782,047 25,312,522 23,386,954 14,009,597
-------------- ------------ ----------- ----------- -----------
Net increase in net assets........................... 579,797,391 20,096,270 28,733,702 28,455,994 16,629,584
Net assets beginning of year......................... 1,109,112,619 45,080,264 16,346,562 30,415,667 13,786,083
-------------- ------------ ----------- ----------- -----------
Net assets end of year*.............................. $1,688,910,010 $ 65,176,534 $45,080,264 $58,871,661 $30,415,667
============== ============ =========== =========== ===========
Units outstanding beginning of year.................. 31,540,233 3,610,923 1,456,982 2,361,710 1,194,315
Units issued during the year......................... 12,880,690 2,649,674 2,462,266 2,234,031 1,460,685
Units redeemed during the year....................... (5,049,542) (1,239,519) (308,325) (514,085) (293,290)
-------------- ------------ ----------- ----------- -----------
Units outstanding end of year........................ 39,371,381 5,021,078 3,610,923 4,081,656 2,361,710
============== ============ =========== =========== ===========
- ---------------
* Includes undistributed net investment income of: $ 84,475,226 $ 1,628,241 $ 456,622 $ 5,579,860 $ 2,129,990
</TABLE>
See notes to financial statements.
47
<PAGE> 59
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
---------------------------------------------------
MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT
------------------------- -----------------------
1997 1996 1997 1996
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
From operations:
Net investment income.............................................. $ 84,261 $ 93,564 $ 82,928 $ 118,511
Net realized gain (loss) on investments............................ 0 0 (17,195) 7,592
Net increase (decrease) in unrealized appreciation of
investments...................................................... 0 0 22,568 (105,165)
----------- ----------- ---------- ----------
Net increase in net assets resulting from operations................ 84,261 93,564 88,301 20,938
----------- ----------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of units............................ 3,559,696 4,333,584 206,205 85,477
Net asset value of units redeemed or used to meet contract
obligations...................................................... (5,555,831) (4,350,827) (936,786) (250,849)
----------- ----------- ---------- ----------
Net decrease from unit transactions................................. (1,996,135) (17,243) (730,581) (165,372)
----------- ----------- ---------- ----------
Net increase (decrease) in net assets............................... (1,911,874) 76,321 (642,280) (144,434)
Net assets beginning of year........................................ 3,613,860 3,537,539 1,928,795 2,073,229
----------- ----------- ---------- ----------
Net assets end of year*............................................. $ 1,701,986 $ 3,613,860 $1,286,515 $1,928,795
=========== =========== ========== ==========
Units outstanding beginning of year................................. 268,258 271,019 118,986 129,078
Units issued during the year........................................ 258,478 326,685 12,934 5,293
Units redeemed during the year...................................... (404,558) (329,446) (56,728) (15,385)
----------- ----------- ---------- ----------
Units outstanding end of year....................................... 122,178 268,258 75,192 118,986
=========== =========== ========== ==========
- ---------------
* Includes undistributed net investment income of: $ 326,438 $ 242,177 $ 353,701 $ 270,773
<CAPTION>
EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT
----------------------- -----------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C>
From operations:
Net investment income.............................................. $ 85,330 $ 43,218 $ 113,545 $ 94,164
Net realized gain (loss) on investments............................ 291,249 201,716 105,416 124,066
Net increase (decrease) in unrealized appreciation of
investments...................................................... 311,925 300,028 482,224 287,148
---------- ---------- ---------- ----------
Net increase in net assets resulting from operations................ 688,504 544,962 701,185 505,378
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of units............................ 94,191 90,651 273,519 454,923
Net asset value of units redeemed or used to meet contract
obligations...................................................... (607,309) (615,503) (338,142) (857,279)
---------- ---------- ---------- ----------
Net decrease from unit transactions................................. (513,118) (524,852) (64,623) (402,356)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets............................... 175,386 20,110 636,562 103,022
Net assets beginning of year........................................ 2,874,538 2,854,428 3,452,097 3,349,075
---------- ---------- ---------- ----------
Net assets end of year*............................................. $3,049,924 $2,874,538 $4,088,659 $3,452,097
========== ========== ========== ==========
Units outstanding beginning of year................................. 87,730 106,172 120,183 136,744
Units issued during the year........................................ 2,620 2,767 8,340 17,388
Units redeemed during the year...................................... (15,939) (21,209) (10,644) (33,949)
---------- ---------- ---------- ----------
Units outstanding end of year....................................... 74,411 87,730 117,879 120,183
========== ========== ========== ==========
- ---------------
* Includes undistributed net investment income of: $ 96,597 $ 11,267 $ 171,376 $ 57,831
<CAPTION>
MANAGED
SUBACCOUNT
---------------------------
1997 1996
------------ ------------
From operations:
Net investment income.............................................. $ 1,391,969 $ 427,532
Net realized gain (loss) on investments............................ 5,761,094 4,226,402
Net increase (decrease) in unrealized appreciation of
investments...................................................... 1,865,204 4,119,101
----------- -----------
Net increase in net assets resulting from operations................ 9,018,267 8,773,035
----------- -----------
From unit transactions:
Net proceeds from the issuance of units............................ 4,748,474 4,110,996
Net asset value of units redeemed or used to meet contract
obligations...................................................... (12,013,129) (11,872,383)
----------- -----------
Net decrease from unit transactions................................. (7,264,655) (7,761,387)
----------- -----------
Net increase (decrease) in net assets............................... 1,753,612 1,011,648
Net assets beginning of year........................................ 45,854,945 44,843,297
----------- -----------
Net assets end of year*............................................. $ 47,608,557 $ 45,854,945
=========== ===========
Units outstanding beginning of year................................. 1,084,412 1,286,294
Units issued during the year........................................ 98,535 113,806
Units redeemed during the year...................................... (250,893) (315,688)
----------- -----------
Units outstanding end of year....................................... 932,054 1,084,412
=========== ===========
- ---------------
* Includes undistributed net investment income of: $ 1,401,493 $ 9,524
</TABLE>
See notes to financial statement.
48
<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 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 68 to 102; 105 to 142; and
145 to 166; 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 1997 was $2,158,177.
49
<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 December 31, 1997 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................. 36,697 54,336 3,035,035 3,974,470 103,775 120,638,664 1,349,979
Amount................. $ 827,651 $ 893,812 $31,870,045 $ 47,687,932 $ 1,420,468 $ 120,638,664 $13,926,074
--------- --------- ----------- ----------- ---------- ------------ -----------
Shares acquired:
Shares................. 2,762 1,687 781,838 1,172,299 4,621 791,090,332 907,237
Amount................. $ 84,206 $ 41,223 $ 8,404,697 $ 14,863,508 $ 88,702 $ 791,090,332 $9,620,113
Shares received for
reinvestment of
dividends:
Shares................. 3,763 6,884 183,803 268,111 8,796 6,788,047 59,593
Amount................. $ 106,179 $ 148,017 $ 1,895,013 $ 3,136,904 $ 145,889 $ 6,788,047 $ 607,853
Shares redeemed:
Shares................. (1,638) (9,843) (775,748) (989,833) (36,003) (788,436,603) (389,952)
Amount................. $ (33,431) $(137,574) $(8,085,554) $(11,001,832) $ (470,085) $(788,436,603) $(4,046,217)
--------- --------- ----------- ----------- ---------- ------------ -----------
Net change:
Shares................. 4,887 (1,272) 189,893 450,577 (22,586) 9,441,776 576,878
Amount................. $ 156,954 $ 51,666 $ 2,214,156 $ 6,998,580 $ (235,494) $ 9,441,776 $6,181,749
--------- --------- ----------- ----------- ---------- ------------ -----------
Shares end of year:
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
========= ========= =========== =========== ========== ============ ===========
</TABLE>
50
<PAGE> 62
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investment in Enterprise Accumulation Trust at cost, at December 31, 1997
consist of the following:
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY SMALL CAP MANAGED GROWTH HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................................... 9,441,091 8,313,340 49,225,009 7,451,283 5,520,085
Amount................................... $219,775,741 $149,844,309 $1,278,396,527 $ 41,542,065 $29,411,432
------------ ------------ -------------- ------------ -----------
Shares acquired:
Shares................................... 4,962,924 4,170,268 17,040,724 5,617,792 5,579,958
Amount................................... $160,100,627 $106,398,220 $ 649,473,099 $ 36,325,944 $31,259,981
Shares received for reinvestment of
dividends:
Shares................................... 416,547 1,010,758 2,569,541 311,697 710,297
Amount................................... $ 14,616,618 $ 26,987,250 $ 104,785,893 $ 1,926,290 $ 3,996,565
Shares redeemed:
Shares................................... (2,244,353) (1,608,981) (12,118,216) (2,834,407) (1,500,067)
Amount................................... $(40,672,974) $(27,693,191) $ (255,319,160) $ (15,131,932) $(7,958,240)
------------ ------------ -------------- ------------ -----------
Net change:
Shares................................... 3,135,118 3,572,045 7,492,049 3,095,082 4,790,188
Amount................................... $134,044,271 $105,692,279 $ 498,939,832 $ 23,120,302 $27,298,306
------------ ------------ -------------- ------------ -----------
Shares end of year:
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
============ ============ ============== ============ ===========
</TABLE>
51
<PAGE> 63
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investment in OCC Accumulation Trust at cost, at December 31, 1997 consist
of the following:
<TABLE>
<CAPTION>
US GOVERNMENT
MONEY MARKET BOND INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares......................... 3,613,860 203,032 0 95,595 152,680 1,266,361
Amount......................... $ 3,613,860 $ 1,918,686 $ 0 $1,856,223 $2,767,076 $29,748,753
----------- ----------- ---------- ---------- ---------- ----------
Shares acquired:
Shares......................... 3,567,162 0 177,669 2,899 10,950 120,612
Amount......................... $ 3,567,162 $ 0 $ 1,817,368 $ 94,806 $ 272,541 $ 4,849,580
Shares received for reinvestment
of dividends:
Shares......................... 115,863 3,597 6,712 4,135 7,414 54,995
Amount......................... $ 115,863 $ 33,877 $ 69,837 $ 123,628 $ 161,545 $ 1,984,204
Shares redeemed:
Shares......................... (5,594,899) (206,629) (61,972) (19,115) (15,995) (318,595)
Amount......................... $(5,594,899) $(1,952,563) $ (633,367) $ (354,973) $ (279,748) $(6,945,376)
----------- ----------- ---------- ---------- ---------- ----------
Net change:
Shares......................... (1,911,874) (203,032) 122,409 (12,081) 2,369 (142,988)
Amount......................... $(1,911,874) $(1,918,686) $ 1,253,838 $ (136,539) $ 154,338 $ (111,592)
----------- ----------- ---------- ---------- ---------- ----------
Shares end of year:
Shares......................... 1,701,986 0 122,409 83,514 155,049 1,123,373
Amount......................... $ 1,701,986 $ 0 $ 1,253,838 $1,719,684 $2,921,414 $29,637,161
=========== =========== ========== ========== ========== ==========
</TABLE>
52
<PAGE> 64
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account A:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account A (comprising, respectively, the MONY Series Fund,
Inc.'s Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified, Government Securities and Money Market Subaccounts; the Enterprise
Accumulation Trust's Equity, Small Cap, Managed, International Growth and High
Yield Bond Subaccounts; and the OCC Accumulation Trust's Money Market, Bond,
Equity, Small Cap, and Managed Subaccounts) as of December 31, 1997, the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended. These
financial statements are the responsibility of MONY America's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account A as of December 31,
1997, the results of their operations for the year then ended, and the changes
in their net assets for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
53
<PAGE> 65
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<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).... $170,806 $215,365 $7,591,341 $12,421,256 $ 107,587 $23,334,035 $3,448,871
======== ======== ========== =========== ========= =========== ==========
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)............................ $291,598 $347,889 $7,904,825 $13,897,512 $ 137,795 $23,334,035 $3,578,938
Amount due from MONY............ 0 0 121,115 72 0 27,625 72
Amount due from MONY Series
Fund, Inc. ................... 12 0 12 725 9 25,122 665
-------- -------- ---------- ----------- --------- ----------- ----------
Total assets........... 291,610 347,889 8,025,952 13,898,309 137,804 23,386,782 3,579,675
-------- -------- ---------- ----------- --------- ----------- ----------
LIABILITIES
Amount due to MONY.............. 12 0 12 725 9 25,122 665
Amount due to MONY Series Fund,
Inc. ......................... 0 0 121,115 72 0 27,625 72
-------- -------- ---------- ----------- --------- ----------- ----------
Total liabilities...... 12 0 121,127 797 9 52,747 737
-------- -------- ---------- ----------- --------- ----------- ----------
Net assets...................... $291,598 $347,889 $7,904,825 $13,897,512 $ 137,795 $23,334,035 $3,578,938
======== ======== ========== =========== ========= =========== ==========
Net assets consist of:
Contractholders' net
payments.................... $ 36,276 $ 16,595 $5,933,337 $ 9,374,745 $(110,074) $20,476,494 $3,371,495
Undistributed net investment
income...................... 49,058 127,199 1,547,605 2,683,655 106,504 2,857,541 50,789
Accumulated net realized gain
on investments.............. 85,472 71,571 110,399 362,856 111,157 0 26,587
Unrealized appreciation of
investments................. 120,792 132,524 313,484 1,476,256 30,208 0 130,067
-------- -------- ---------- ----------- --------- ----------- ----------
Net assets...................... $291,598 $347,889 $7,904,825 $13,897,512 $ 137,795 $23,334,035 $3,578,938
======== ======== ========== =========== ========= =========== ==========
Number of units outstanding* ... 7,284 9,384 436,486 604,629 4,707 1,543,043 302,006
-------- -------- ---------- ----------- --------- ----------- ----------
Net asset value per unit
outstanding*.................. $ 40.03 $ 37.07 $ 18.11 $ 22.99 $ 29.27 $ 15.12 $ 11.85
======== ======== ========== =========== ========= =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
54
<PAGE> 66
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<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).............. $46,784,804 $31,594,208 $223,370,538 $ 8,462,886 $7,036,463
=========== =========== ============ ========== ==========
Investments in Enterprise Accumulation
Trust, at net asset value (Note 2)...... $58,897,778 $39,297,930 $297,065,970 $ 8,619,818 $7,265,062
Amount due from MONY...................... 531 1,488 661 362 3
Amount due from Enterprise Accumulation
Trust................................... 1,491 540 9,564 427 14
----------- ----------- ------------ ---------- ----------
Total assets.................... 58,899,800 39,299,958 297,076,195 8,620,607 7,265,079
----------- ----------- ------------ ---------- ----------
LIABILITIES
Amount due to MONY........................ 1,491 540 9,564 427 14
Amount due to Enterprise Accumulation
Trust................................... 531 1,488 661 362 3
----------- ----------- ------------ ---------- ----------
Total liabilities............... 2,022 2,028 10,225 789 17
----------- ----------- ------------ ---------- ----------
Net assets................................ $58,897,778 $39,297,930 $297,065,970 $ 8,619,818 $7,265,062
=========== =========== ============ ========== ==========
Net assets consist of:
Contractholders' net payments........... $35,666,860 $23,668,061 $151,930,328 $ 7,826,278 $6,396,951
Undistributed net investment income..... 2,815,100 4,904,544 22,763,039 210,205 576,880
Accumulated net realized gain on
investments.......................... 8,302,844 3,021,603 48,677,171 426,403 62,632
Unrealized appreciation of
investments.......................... 12,112,974 7,703,722 73,695,432 156,932 228,599
----------- ----------- ------------ ---------- ----------
Net assets................................ $58,897,778 $39,297,930 $297,065,970 $ 8,619,818 $7,265,062
=========== =========== ============ ========== ==========
Number of units outstanding* ............. 1,428,789 1,042,727 5,633,476 664,152 502,892
----------- ----------- ------------ ---------- ----------
Net asset value per unit outstanding* .... $ 41.22 $ 37.69 $ 52.73 $ 12.98 $ 14.45
=========== =========== ============ ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
55
<PAGE> 67
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<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)..................... $464,272 $574,919 $225,366 $177,907 $ 7,308,176
======== ======== ======== ======== ===========
Investments in OCC Accumulation Trust, at net
asset value (Note 2)........................... $464,272 $590,466 $392,027 $260,650 $12,181,976
Amount due from OCC Accumulation Trust........... 4,917 0 30,238 37,745 39,248
-------- -------- -------- -------- -----------
Total assets........................... 469,189 590,466 422,265 298,395 12,221,224
-------- -------- -------- -------- -----------
LIABILITIES
Amount due to MONY............................... 4,917 0 30,238 37,745 39,248
-------- -------- -------- -------- -----------
Net assets....................................... $464,272 $590,466 $392,027 $260,650 $12,181,976
======== ======== ======== ======== ===========
Net assets consist of:
Contractholders' net payments.................. $411,747 $458,422 $165,693 $ 92,522 $ 4,584,790
Undistributed net investment income............ 52,525 122,784 12,025 23,660 377,599
Accumulated net realized gain (loss) on
investments................................. 0 (6,287) 47,648 61,725 2,345,787
Unrealized appreciation of investments......... 0 15,547 166,661 82,743 4,873,800
-------- -------- -------- -------- -----------
Net assets....................................... $464,272 $590,466 $392,027 $260,650 $12,181,976
======== ======== ======== ======== ===========
Number of units outstanding* .................... 33,429 34,521 9,563 7,532 238,580
-------- -------- -------- -------- -----------
Net asset value per unit outstanding* ........... $ 13.89 $ 17.10 $ 40.99 $ 34.60 $ 51.06
======== ======== ======== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
56
<PAGE> 68
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................. $ 22,966 $ 33,575 $ 370,421 $ 650,293 $ 11,395 $ 987,648 $ 73,370
Mortality and expense risk
charges (Note 3).............. (3,532) (3,979) (86,207) (142,676) (1,903) (239,236) (29,730)
------- ------- -------- -------- ------- -------- -------
Net investment income........... 19,434 29,596 284,214 507,617 9,492 748,412 43,640
------- ------- -------- -------- ------- -------- -------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 51,279 29,023 1,950,322 1,813,551 79,051 98,008,091 437,221
Cost of shares sold........... (18,585) (15,972) (1,845,704) (1,712,725) (56,492) (98,008,091) (423,768)
------- ------- -------- -------- ------- -------- -------
Net realized gain on
investments................... 32,694 13,051 104,618 100,826 22,559 0 13,453
Net increase in unrealized
appreciation of investments... 19,810 37,678 42,476 766,700 2,068 0 82,489
------- ------- -------- -------- ------- -------- -------
Net realized and unrealized gain
on investments................ 52,504 50,729 147,094 867,526 24,627 0 95,942
------- ------- -------- -------- ------- -------- -------
Net increase in net assets
resulting from operations..... $ 71,938 $ 80,325 $ 431,308 $ 1,375,143 $ 34,119 $ 748,412 $ 139,582
======= ======= ======== ======== ======= ======== =======
</TABLE>
See notes to financial statements.
57
<PAGE> 69
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income....................... $ 1,949,439 $ 3,336,149 $ 13,456,808 $ 254,490 $ 454,254
Mortality and expense risk charges
(Note 3)............................ (600,550) (366,390) (3,295,905) (96,803) (61,837)
---------- ---------- ----------- -------- --------
Net investment income................. 1,348,889 2,969,759 10,160,903 157,687 392,417
---------- ---------- ----------- -------- --------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales................. 10,212,701 6,071,175 54,467,469 1,706,834 878,555
Cost of shares sold................. (5,630,250) (4,264,386) (29,982,762) (1,391,670) (836,187)
---------- ---------- ----------- -------- --------
Net realized gain on investments...... 4,582,451 1,806,789 24,484,707 315,164 42,368
Net increase (decrease) in unrealized
appreciation of investments......... 4,305,948 5,408,719 18,352,149 (304,765) 131,750
---------- ---------- ----------- -------- --------
Net realized and unrealized gain on
investments......................... 8,888,399 7,215,508 42,836,856 10,399 174,118
---------- ---------- ----------- -------- --------
Net increase in net assets resulting
from operations..................... $10,237,288 $10,185,267 $ 52,997,759 $ 168,086 $ 566,535
========== ========== =========== ======== ========
</TABLE>
See notes to financial statements.
58
<PAGE> 70
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<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............................ $ 23,660 $ 35,262 $ 15,704 $ 15,785 $ 534,860
Mortality and expense risk charges (Note
3)....................................... (6,423) (7,113) (4,914) (3,877) (156,293)
------- -------- ------- ------- ----------
Net investment income...................... 17,237 28,149 10,790 11,908 378,567
------- -------- ------- ------- ----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales...................... 1,083,435 604,285 78,237 140,636 3,477,244
Cost of shares sold...................... (1,083,435) (613,869) (42,395) (102,877) (1,921,839)
------- -------- ------- ------- ----------
Net realized gain (loss) on investments.... 0 (9,584) 35,842 37,759 1,555,405
Net increase in unrealized appreciation of
investments.............................. 0 12,352 42,275 7,206 369,175
------- -------- ------- ------- ----------
Net realized and unrealized gain on
investments.............................. 0 2,768 78,117 44,965 1,924,580
------- -------- ------- ------- ----------
Net increase in net assets resulting from
operations............................... $ 17,237 $ 30,917 $ 88,907 $ 56,873 $ 2,303,147
======= ======== ======= ======= ==========
</TABLE>
See notes to financial statements.
59
<PAGE> 71
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-----------------------------------------------------------
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------- -------------------- -----------
1997 1996 1997 1996 1997
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................................... $ 19,434 $ (2,869) $ 29,596 $ (2,755) $ 284,214
Net realized gain (loss) on investments........................ 32,694 3,240 13,051 10,024 104,618
Net increase in unrealized appreciation of investments......... 19,810 40,185 37,678 35,971 42,476
-------- -------- -------- -------- ----------
Net increase (decrease) in net assets resulting from
operations..................................................... 71,938 40,556 80,325 43,240 431,308
-------- -------- -------- -------- ----------
From unit transactions:
Net proceeds from the issuance of units........................ 0 0 1,714 521 2,659,796
Net asset value of units redeemed or used to meet contract
obligations.................................................. (27,729) (3,203) (4,757) (22,959) (1,677,836)
-------- -------- -------- -------- ----------
Net increase (decrease) from unit transactions................... (27,729) (3,203) (3,043) (22,438) 981,960
-------- -------- -------- -------- ----------
Net increase (decrease) in net assets............................ 44,209 37,353 77,282 20,802 1,413,268
Net assets beginning of year..................................... 247,389 210,036 270,607 249,805 6,491,557
-------- -------- -------- -------- ----------
Net assets end of year*.......................................... $291,598 $247,389 $347,889 $270,607 $ 7,904,825
======== ======== ======== ======== ==========
Units outstanding beginning of year.............................. 7,976 8,091 9,465 10,336 381,313
Units issued during the year..................................... 0 0 619 20 152,349
Units redeemed during the year................................... (692) (115) (700) (891) (97,176)
-------- -------- -------- -------- ----------
Units outstanding end of year.................................... 7,284 7,976 9,384 9,465 436,486
======== ======== ======== ======== ==========
- ---------------
* Includes undistributed net investment income of: $ 49,058 $ 29,624 $127,199 $ 97,603 $ 1,547,605
<CAPTION>
LONG TERM BOND
SUBACCOUNT
--------------------------
1996 1997 1996
----------- ----------- -----------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................................... $ (83,249) $ 507,617 $ (124,623)
Net realized gain (loss) on investments........................ (66,500) 100,826 (113,978)
Net increase in unrealized appreciation of investments......... 287,901 766,700 58,274
---------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations..................................................... 138,152 1,375,143 (180,327)
---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units........................ 2,126,818 3,496,284 2,785,899
Net asset value of units redeemed or used to meet contract
obligations.................................................. (2,394,742) (1,307,957) (2,589,305)
---------- ----------- -----------
Net increase (decrease) from unit transactions................... (267,924) 2,188,327 196,594
---------- ----------- -----------
Net increase (decrease) in net assets............................ (129,772) 3,563,470 16,267
Net assets beginning of year..................................... 6,621,329 10,334,042 10,317,775
---------- ----------- -----------
Net assets end of year*.......................................... $ 6,491,557 $13,897,512 $10,334,042
========== =========== ===========
Units outstanding beginning of year.............................. 398,283 503,775 495,169
Units issued during the year..................................... 128,432 162,590 139,629
Units redeemed during the year................................... (145,402) (61,736) (131,023)
---------- ----------- -----------
Units outstanding end of year.................................... 381,313 604,629 503,775
========== =========== ===========
- ---------------
* Includes undistributed net investment income of: $ 1,263,391 $ 2,683,655 $ 2,176,038
</TABLE>
See notes to financial statements.
60
<PAGE> 72
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. (CONTINUED)
-------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------- ------------
1997 1996 1997
-------- --------- ------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..................................................... $ 9,492 $ (3,484) $ 748,412
Net realized gain (loss) on investments.......................................... 22,559 41,789 0
Net increase (decrease) in unrealized appreciation of investments................ 2,068 (9,570) 0
------- ------- ----------
Net increase in net assets resulting from operations............................... 34,119 28,735 748,412
------- ------- ----------
From unit transactions:
Net proceeds from the issuance of units.......................................... 674 77,280 96,655,000
Net asset value of units redeemed or used to meet contract obligations........... (77,004) (180,942) (93,779,042)
------- ------- ----------
Net increase (decrease) from unit transactions..................................... (76,330) (103,662) 2,875,958
------- ------- ----------
Net increase (decrease) in net assets.............................................. (42,211) (74,927) 3,624,370
Net assets beginning of year....................................................... 180,006 254,933 19,709,665
------- ------- ----------
Net assets end of year*............................................................ $137,795 $ 180,006 $ 23,334,035
======= ======= ==========
Units outstanding beginning of year................................................ 7,590 12,152 1,355,274
Units issued during the year....................................................... 34 3,635 6,511,788
Units redeemed during the year..................................................... (2,917) (8,197) (6,324,019)
------- ------- ----------
Units outstanding end of year...................................................... 4,707 7,590 1,543,043
======= ======= ==========
- ---------------
* Includes undistributed net investment income of: $106,504 $ 97,012 $ 2,857,541
<CAPTION>
GOVERNMENT
SECURITIES
SUBACCOUNT
------------------------
1996 1997 1996
------------ ---------- ----------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..................................................... $ 648,275 $ 43,640 $ (17,809)
Net realized gain (loss) on investments.......................................... 0 13,453 (462)
Net increase (decrease) in unrealized appreciation of investments................ 0 82,489 57,310
---------- --------- -------
Net increase in net assets resulting from operations............................... 648,275 139,582 39,039
---------- --------- -------
From unit transactions:
Net proceeds from the issuance of units.......................................... 71,884,991 1,902,833 1,419,641
Net asset value of units redeemed or used to meet contract obligations........... (70,019,648) (278,247) (558,126)
---------- --------- -------
Net increase (decrease) from unit transactions..................................... 1,865,343 1,624,586 861,515
---------- --------- -------
Net increase (decrease) in net assets.............................................. 2,513,618 1,764,168 900,554
Net assets beginning of year....................................................... 17,196,047 1,814,770 914,216
---------- --------- -------
Net assets end of year*............................................................ $ 19,709,665 $3,578,938 $1,814,770
========== ========= =======
Units outstanding beginning of year................................................ 1,227,811 162,102 83,571
Units issued during the year....................................................... 5,032,568 164,256 129,566
Units redeemed during the year..................................................... (4,905,105) (24,352) (51,035)
---------- --------- -------
Units outstanding end of year...................................................... 1,355,274 302,006 162,102
========== ========= =======
- ---------------
* Includes undistributed net investment income of: $ 2,109,129 $ 50,789 $ 7,149
</TABLE>
See notes to financial statements.
61
<PAGE> 73
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------- -------------------------- ----------------------------
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ 1,348,889 $ 127,192 $ 2,969,759 $ 98,655 $ 10,160,903 $ (159,652)
Net realized gain on
investments................. 4,582,451 1,845,892 1,806,789 322,780 24,484,707 10,600,967
Net increase (decrease) in
unrealized appreciation of
investments................. 4,305,948 3,936,924 5,408,719 1,442,596 18,352,149 25,728,772
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets
resulting from operations..... 10,237,288 5,910,008 10,185,267 1,864,031 52,997,759 36,170,087
----------- ----------- ----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the issuance
of units.................... 19,541,544 13,430,622 11,606,860 5,146,904 69,610,057 59,678,401
Net asset value of units
redeemed or used to meet
contract obligations........ (8,148,291) (3,493,043) (4,634,574) (4,293,528) (46,391,571) (24,531,771)
----------- ----------- ----------- ----------- ------------ ------------
Net increase from unit
transactions.................. 11,393,253 9,937,579 6,972,286 853,376 23,218,486 35,146,630
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets...... 21,630,541 15,847,587 17,157,553 2,717,407 76,216,245 71,316,717
Net assets beginning of year.... 37,267,237 21,419,650 22,140,377 19,422,970 220,849,725 149,533,008
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of year*......... $58,897,778 $37,267,237 $39,297,930 $22,140,377 $297,065,970 $220,849,725
=========== =========== =========== =========== ============ ============
Units outstanding beginning of
year.......................... 1,123,086 798,552 837,807 807,452 5,150,485 4,253,824
Units issued during the year.... 526,272 441,702 347,201 202,925 1,464,377 1,537,736
Units redeemed during the
year.......................... (220,569) (117,168) (142,281) (172,570) (981,386) (641,075)
----------- ----------- ----------- ----------- ------------ ------------
Units outstanding end of year... 1,428,789 1,123,086 1,042,727 837,807 5,633,476 5,150,485
=========== =========== =========== =========== ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 2,815,100 $ 1,466,211 $ 4,904,544 $ 1,934,785 $ 22,763,039 $ 12,602,136
<CAPTION>
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------------- ------------------------
1997 1996 1997 1996
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ 157,687 $ (28,360) $ 392,417 $ 140,903
Net realized gain on
investments................. 315,164 94,099 42,368 10,750
Net increase (decrease) in
unrealized appreciation of
investments................. (304,765) 382,690 131,750 84,387
---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations..... 168,086 448,429 566,535 236,040
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units.................... 3,852,044 3,893,317 3,929,223 2,209,079
Net asset value of units
redeemed or used to meet
contract obligations........ (1,301,430) (314,849) (420,640) (323,040)
---------- ---------- ---------- ----------
Net increase from unit
transactions.................. 2,550,614 3,578,468 3,508,583 1,886,039
---------- ---------- ---------- ----------
Net increase in net assets...... 2,718,700 4,026,897 4,075,118 2,122,079
Net assets beginning of year.... 5,901,118 1,874,221 3,189,944 1,067,865
---------- ---------- ---------- ----------
Net assets end of year*......... $ 8,619,818 $5,901,118 $7,265,062 $3,189,944
========== ========== ========== ==========
Units outstanding beginning of
year.......................... 472,752 167,074 247,295 92,358
Units issued during the year.... 289,408 332,329 286,812 182,283
Units redeemed during the
year.......................... (98,008) (26,651) (31,215) (27,346)
---------- ---------- ---------- ----------
Units outstanding end of year... 664,152 472,752 502,892 247,295
========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 210,205 $ 52,518 $ 576,880 $ 184,463
</TABLE>
See notes to financial statements.
62
<PAGE> 74
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
------------------------------------------------------------------------
MONEY MARKET BOND EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- --------------------- --------------------
1997 1996 1997 1996 1997 1996
----------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income....................... $ 17,237 $ 14,005 $ 28,149 $ 42,462 $ 10,790 $ 4,186
Net realized gain (loss) on investments..... 0 0 (9,584) (186) 35,842 7,734
Net increase (decrease) in unrealized
appreciation of investments............... 0 0 12,352 (44,748) 42,275 54,162
---------- ------- ------- -------- ------- -------
Net increase (decrease) in net assets
resulting from operations................... 17,237 14,005 30,917 (2,472) 88,907 66,082
---------- ------- ------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of units..... 1,080,192 19,197 20,982 15,468 4,581 22,903
Net asset value of units redeemed or used to
meet contract obligations................. (1,076,942) (27,513) (30,553) (276,029) (71,904) (12,801)
---------- ------- ------- -------- ------- -------
Net increase (decrease) from unit
transactions................................ 3,250 (8,316) (9,571) (260,561) (67,323) 10,102
---------- ------- ------- -------- ------- -------
Net increase (decrease) in net assets......... 20,487 5,689 21,346 (263,033) 21,584 76,184
Net assets beginning of year.................. 443,785 438,096 569,120 832,153 370,443 294,259
---------- ------- ------- -------- ------- -------
Net assets end of year*....................... $ 464,272 $443,785 $590,466 $ 569,120 $392,027 $370,443
========== ======= ======= ======== ======= =======
Units outstanding beginning of year........... 33,041 33,665 35,119 51,825 11,304 10,944
Units issued during the year.................. 78,351 1,448 1,264 650 153 894
Units redeemed during the year................ (77,963) (2,072) (1,862) (17,356) (1,894) (534)
---------- ------- ------- -------- ------- -------
Units outstanding end of year................. 33,429 33,041 34,521 35,119 9,563 11,304
========== ======= ======= ======== ======= =======
- ---------------
* Includes undistributed net investment income
of: $ 52,525 $ 35,288 $122,784 $ 94,635 $ 12,025 $ 1,235
<CAPTION>
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
---------------------- --------------------------
1997 1996 1997 1996
--------- --------- ----------- -----------
<S> <C> <C> <C> <C>
From operations:
Net investment income....................... $ 11,908 $ 15,959 $ 378,567 $ 97,936
Net realized gain (loss) on investments..... 37,759 20,195 1,555,405 695,252
Net increase (decrease) in unrealized
appreciation of investments............... 7,206 17,666 369,175 1,520,888
-------- -------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations................... 56,873 53,820 2,303,147 2,314,076
-------- -------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of units..... 0 10,778 1,042,873 301,963
Net asset value of units redeemed or used to
meet contract obligations................. (136,759) (174,121) (3,207,772) (1,630,402)
-------- -------- ---------- ----------
Net increase (decrease) from unit
transactions................................ (136,759) (163,343) (2,164,899) (1,328,439)
-------- -------- ---------- ----------
Net increase (decrease) in net assets......... (79,886) (109,523) 138,248 985,637
Net assets beginning of year.................. 340,536 450,059 12,043,728 11,058,091
-------- -------- ---------- ----------
Net assets end of year*....................... $ 260,650 $ 340,536 $12,181,976 $12,043,728
======== ======== ========== ==========
Units outstanding beginning of year........... 11,883 18,419 284,927 317,313
Units issued during the year.................. 0 484 21,763 8,688
Units redeemed during the year................ (4,351) (7,020) (68,110) (41,074)
-------- -------- ---------- ----------
Units outstanding end of year................. 7,532 11,883 238,580 284,927
======== ======== ========== ==========
- ---------------
* Includes undistributed net investment income
of: $ 23,660 $ 11,752 $ 377,599 $ (968)
</TABLE>
See notes to financial statements.
63
<PAGE> 75
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 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 68 to 102; 105 to 142; and
145 to 166; 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 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 1997 was $244,101.
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.
64
<PAGE> 76
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 December 31, 1997 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY GOVERNMENT
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.................... 8,146 11,545 592,296 804,831 10,006 19,709,665 171,528
Amount.................... $ 146,407 $ 175,761 $ 6,220,549 $ 9,624,486 $ 151,866 $ 19,709,665 $1,767,192
-------- -------- ----------- ---------- --------- ------------ -----------
Shares acquired:
Shares.................... 560 847 263,589 300,731 49 100,644,813 191,007
Amount.................... $ 20,018 $ 22,001 $ 2,846,075 $ 3,859,202 $ 818 $100,644,813 $2,032,077
Shares received for
reinvestment of dividends:
Shares.................... 814 1,562 35,928 55,581 682 987,648 7,193
Amount.................... $ 22,966 $ 33,575 $ 370,421 $ 650,293 $ 11,395 $ 987,648 $ 73,370
Shares redeemed:
Shares.................... (1,438) (1,117) (180,947) (142,265) (4,051) (98,008,091) (41,084)
Amount.................... $ (18,585) $ (15,972) $(1,845,704) $(1,712,725) $ (56,492) $(98,008,091) $(423,768)
-------- -------- ----------- ---------- --------- ------------ -----------
Net change:
Shares.................... (64) 1,292 118,570 214,047 (3,320) 3,624,370 157,116
Amount.................... $ 24,399 $ 39,604 $ 1,370,792 $ 2,796,770 $ (44,279) $ 3,624,370 $1,681,679
-------- -------- ----------- ---------- --------- ------------ -----------
Shares end of year:
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
======== ======== =========== ========== ========= ============ ===========
</TABLE>
65
<PAGE> 77
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust, Inc. at cost, at December 31,
1997 consist of the following:
<TABLE>
<CAPTION>
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares....................................... 1,291,312 1,094,975 6,436,891 975,391 578,938
Amount....................................... $29,460,211 $19,845,374 $165,506,442 $ 5,439,421 $3,093,095
----------- ----------- ------------ ---------- ----------
Shares acquired:
Shares....................................... 645,760 492,469 1,939,751 640,016 769,503
Amount....................................... $21,005,404 $12,677,071 $ 74,390,050 $ 4,160,645 $4,325,301
Shares received for reinvestment of dividends:
Shares....................................... 55,555 124,949 329,985 41,180 80,670
Amount....................................... $ 1,949,439 $ 3,336,149 $ 13,456,808 $ 254,490 $ 454,254
Shares redeemed:
Shares....................................... (314,149) (240,560) (1,422,027) (261,794) (156,771)
Amount....................................... $(5,630,250) $(4,264,386) $(29,982,762) $(1,391,670) $ (836,187)
----------- ----------- ------------ ---------- ----------
Net change:
Shares....................................... 387,166 376,858 847,709 419,402 693,402
Amount....................................... $17,324,593 $11,748,834 $ 57,864,096 $ 3,023,465 $3,943,368
----------- ----------- ------------ ---------- ----------
Shares end of year:
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
=========== =========== ============ ========== ==========
</TABLE>
Investments in OCC Accumulation Trust, Inc. at cost, at December 31, 1997
consist of the following:
<TABLE>
<CAPTION>
MONEY US GOVERNMENT
MARKET BOND INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- --------- ------------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares............................... 443,785 59,908 0 12,319 15,061 332,608
Amount............................... $ 443,785 $ 565,925 $ 0 $ 246,057 $264,999 $ 7,539,103
-------- --------- -------- -------- -------- ----------
Shares acquired:
Shares............................... 1,080,262 1,176 56,391 173 0 28,172
Amount............................... $ 1,080,262 $ 10,982 $ 576,619 $ 6,000 $ 0 $ 1,156,052
Shares received for reinvestment of
dividends:
Shares............................... 23,660 1,114 2,380 525 724 14,824
Amount............................... $ 23,660 $ 10,492 $ 24,770 $ 15,704 $ 15,785 $ 534,860
Shares redeemed:
Shares............................... (1,083,435) (62,198) (2,590) (2,283) (5,901) (88,158)
Amount............................... $(1,083,435) $(587,399) $ (26,470) $ (42,395) $(102,877) $(1,921,839)
-------- --------- -------- -------- -------- ----------
Net change:
Shares............................... 20,487 (59,908) 56,181 (1,585) (5,177) (45,162)
Amount............................... $ 20,487 $(565,925) $ 574,919 $ (20,691) $(87,092) $ (230,927)
-------- --------- -------- -------- -------- ----------
Shares end of year:
Shares............................... 464,272 0 56,181 10,734 9,884 287,446
Amount............................... $ 464,272 $ 0 $ 574,919 $ 225,366 $177,907 $ 7,308,176
======== ========= ======== ======== ======== ==========
</TABLE>
66
<PAGE> 78
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account A:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account A (comprising, respectively, the MONY Series Fund, Inc.'s
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified, Government Securities and Money Market Subaccounts; the Enterprise
Accumulation Trust's Equity, Small Cap, Managed, International Growth and High
Yield Bond Subaccounts; and the OCC Accumulation Trust's Money Market, Bond,
Equity, Small Cap and Managed Subaccounts) as of December 31, 1997, the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended. These
financial statements are the responsibility of MONY's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account A as of December 31, 1997, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
67
<PAGE> 79
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
The stock market has enjoyed an unprecedented three very strong (greater
than 20 percent) years in a row. Valuations and expectations are high and the
risks and unknowns are increasing. The most prudent approach is a strategy that
emphasizes defensive sectors and companies, and relatively assured earnings
growth.
Cyclical and economy sensitive sectors have been reduced, mostly in the
basic materials industries but also in capital spending related industries. Any
industry or company which has depended on Asia for incremental growth is now
more likely to disappoint. Eventually, these stocks will become cheap enough to
be interesting again, but for now this area is being de-emphasized.
A major emphasis for the Equity Growth Portfolio in this environment is the
stable growth area. Healthcare, especially pharmaceuticals, is heavily weighted
as well as the consumer staples sector with an emphasis on beverages, household
products and specialty retailers. The financial sector is also heavily weighted
with the emphasis on insurance and regional banks. Technology has been reduced
in weight, but is still an important part of the Portfolio.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
30.68% 18.25% 16.10%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
68
<PAGE> 80
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
The stock market has enjoyed an unprecedented three very strong (greater
than 20 percent) years in a row. Valuations and expectations are high and the
risks and unknowns are increasing. The most prudent approach is a strategy that
emphasizes defensive sectors and companies, and relatively assured earnings
growth.
Cyclical and economy sensitive sectors have been reduced, mostly in the
basic materials industries but also in capital spending related industries. Any
industry or company which has depended on Asia for incremental growth is now
more likely to disappoint. Eventually these stocks will become cheap enough to
be interesting again, but for now this area is being de-emphasized.
Telephone sectors are a major overweight. They are attractive for their
high yields, stable earnings and the consolidation which is occurring in the
industry. The same holds for electric utilities. They are a smaller part of the
Portfolio but are being increased in weight. Financial stocks continue as a
major overweight, but the emphasis is being changed more toward regional banks
and insurance and less toward money center banks.
In the stable growth sector, healthcare, primarily pharmaceutical
companies, continues as an area of major emphasis. Household products, cosmetics
and to a lesser extent food names have been increased in weight. In a difficult
environment for stocks in general, with corporate profit disappointments likely
and the full ramifications of the Asian turmoil still to come, these defensive
and higher yield sectors should be attractive to investors.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
31.26% 19.21% 15.79%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
69
<PAGE> 81
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
The Intermediate Term Bond Portfolio is a diversified portfolio of 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 5.42 years
for the year ended December 31, 1997.
For the quarter ended December 31, 1997, the Portfolio earned a total
return of 2.10%. For the one year period ended December 31, 1997, the Portfolio
earned a total return of 7.70%, and for the five and ten year periods the
Portfolio earned an average annual return of 6.38% and 7.77% respectively.
The bond market finished the year with another quarter of satisfactory
performance, underpinned by a rallying Treasury market. Interest rates, as
measured by the benchmark five-year U.S. Treasury declined 27 basis points to
yield 5.71% at the end of the quarter.
The U.S. Treasury market benefited from the "flight to quality" trade
emanating from the Asian economic crisis, whereas the corporate sector saw risk
premiums soaring to record levels. Market participants focused on the potential
of a global economic slowdown triggered by a financially weak Asia and
practically ignored the strong fundamentals of the U.S. economy. Inflation
continued to be restrained. Prices rose only 1.7% in 1997, a level not seen
since the early 1960's.
Our outlook for 1998 is that despite the Asian crisis and its potential
disinflationary effect on global economies, inflation will reemerge and interest
rates will move up to settle in a range centered around 6% over time. On the
technical side, the market will be supported by a considerable reduction in
supply of Treasury securities thanks to the almost balanced budget. As for the
corporate sector, spreads will continue to be susceptible to widening driven by
the Asian contagion and volatile equity markets.
The Portfolio is currently invested in corporate issuers, comprising 54% of
total invested assets. U.S. Treasury issues make up 19% of the Portfolio, with
12% in mortgage-backed securities, 4% in asset-backed securities and the balance
in cash equivalents. The average Moody's rating on issues in the Portfolio is
A1, reflecting emphasis on higher debt issuers.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS
INTERMEDIATE GOV/CORP INDEX
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
7.70% 6.38% 7.77%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
70
<PAGE> 82
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
20.3 years and a duration of 9.88 years as of December 31, 1997.
For the quarter ended December 31, 1997, the Portfolio earned a total
return of 5.50%. For the one year period ended December 31, 1997, the Portfolio
earned a total return of 13.44% and for the five and ten year periods the
Portfolio earned an average annual return of 9.54% and 10.46% respectively.
The fourth quarter saw cracks appear in the "Asian Miracle": the seemingly
endless economic growth of the countries of the Pacific Rim. As a crisis of
confidence swept the region, money flowed into the safe haven of U.S.
Treasuries. When combined with plummeting commodity prices, the net effect was a
steady drop in interest rates. The Treasury curve flattened as the yields
dropped, meaning that long rates dropped more than short rates. The thirty-year
U.S. Treasury declined from 6.40% to 5.92%, while the five-year U.S. Treasury
declined from 5.99% to 5.71%.
For those attentive readers that recall last quarter's comments on the
market outlook, we commented on the healthy profile of corporate America and our
favorable disposition toward overweighting corporate securities. We also stated
that a "conservative investment profile" would be maintained. Well, nothing has
changed strategically. We continue to look for "up-in-quality" trades with
corporates that demonstrate market dominance, superior management team, and
improving credit profiles. Currently, a tug-of-war is under way between a strong
domestic economy and a trade drag with deflation that Asia is transmitting to
the U.S. We feel that the Asian crisis is likely to be the primary influence
during the first half of 1998. That's because a pull-back in domestic demand
abroad and the dollar's sharp appreciation should lead to a significant
reduction in the demand for U.S. exports and a drop in import prices, which help
dampen U.S. inflation. This translates into near term favorable conditions for
the Treasury bond market as a perceived flight to quality. As such, we had been
increasing our Treasury exposure and moving into sectors with limited or no
exposure to Asia. For example, we purchased a high quality asset-backed credit
card issue on the basis of increased improvement in consumer credit quality and
negligible correlation to Asia. For corporate securities, we anticipate a
slowdown in earnings but a continued strong credit profile. While the Asian
crisis is projected to shave off about .5% of real GDP growth and S&P earnings
growth is expected to decline from 13% to about 8%, corporate discretionary free
cash flow should continue to be generous. Nearly one-third of corporate earnings
is free cash flow (after capital expenditures and dividends). Therefore, we
maintain the core group of credit holdings based on market dominance, superb
management, and stability of earnings throughout market cycles. Some of these
credits are General Electric, Boeing, Fifth Third Bank, and USA Waste. Over the
near term, we will be looking at opportunities in the cyclical and service areas
such as paper companies and retailers as the Asia situation begins to diminish.
71
<PAGE> 83
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO -- (CONTINUED)
The Portfolio is currently invested in 30 corporate issuers, comprising 51%
of total invested assets, U.S. Treasury issues represent 38%, with 8% in
mortgage and asset-backed securities. The remaining 3% represent cash
equivalents. Our continued emphasis on higher quality is reflected in the
average Moody's rating on issues in the Portfolio is Aa2.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS LONG GOV/CORP INDEX
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------- ------- --------
<S> <C> <C>
13.44% 9.54% 10.46%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
72
<PAGE> 84
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
Some of the air seemed to be let out of the inflated stock market in the
fourth quarter. The proximate cause was the potential spillover from a
continuing crisis in the Asian Pacific region, but after three years of massive
gains, perhaps any excuse for a pullback would suffice. Many secondary stocks
were particularly hard hit, and volatility reigned. Many investors, especially
those overseas, fled the equity markets for the safety of U.S. Treasury
securities, sending interest rates to their lowest levels in years. As a result,
bonds did better than stocks in the fourth quarter -- a rarity in recent years.
The benchmark S&P 500 Index was up 2.84% for the quarter, while the Russell 2000
Index of smaller stocks was down 3.35%. The benchmark Lehman Brothers
Government/Corporate Bond Index rose by 3.21%.
We are guarded about the upside prospects for the market in the new year.
Labor cost pressures and severe import price competition should combine to
squeeze corporate profits. The silver lining is that we forecast continued
economic expansion, with still moderate interest rates. All said, we think 1998
will prove to be an acceptable, but not stellar year for investors.
For the quarter ended December 31, 1997, the Portfolio earned a total
return of 1.57%. For the one year period ended December 31, 1997, the Portfolio
earned a total return of 24.97% and for the five and ten year periods, the
Portfolio earned an average annual return of 15.16% and 12.94%, respectively.
As of December 31, 1997, the Diversified Portfolio was invested 79% in
common stocks, 16% in bonds, and 5% in money-market equivalents.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
24.97% 15.16% 12.94%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
73
<PAGE> 85
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 2.5 years at December 31, 1997.
For the quarter ended December 31, 1997, the Portfolio earned a total
return of 1.97%. For the one year period ended December 31, 1997, the Portfolio
earned a total return of 7.18% and 5.56% for the five year period. Since
inception on May 1, 1991, the Portfolio earned an average annual return of 6.67%
for the period ended December 31, 1997.
The fourth quarter saw cracks appear in the "Asian Miracle": the seemingly
endless economic growth of the countries of the Pacific Rim. As a crisis of
confidence swept the region, money flowed into the safe haven of U.S.
Treasuries. When combined with plummeting commodity prices, the net effect was a
steady drop in interest rates. Intermediate Treasury (4-10 year maturity) yields
moved down approximately one-half a percentage point.
The Treasury market now seems to anticipate a worst case of sharply lower
domestic growth with price deflation. While Asian economic troubles may have
some effect here, we still believe 1998 will continue to be a year of solid U.S.
economic growth. Ironically, the economy should get a boost from the current
lower rate environment. As evidence of sustained growth becomes apparent,
intermediate term interest rates should drift back up into the range that
dominated through much of 1997.
The Portfolio is currently invested 100% in U.S. Treasury and Agency
obligations.
Investments made in the Government Security Portfolio are not insured nor
guaranteed by the U.S. Government.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO FROM INCEPTION (5/1/91) THROUGH 12/31/97 AND
TOTAL RETURN ON LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX
GRAPH
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS SINCE MAY 1, 1991
- ------ ------- -----------------
<S> <C> <C>
7.18% 5.56% 6.67%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
74
<PAGE> 86
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
Over the course of the fourth quarter of 1997, the bond market continued to
exhibit a high degree of rate volatility. Expectations on the part of bond
market participants as to the timing of another move by the Federal Reserve
Board (the "Fed") to tighten monetary policy via another boost in the overnight
Federal funds rate were quickly shoved aside in the face of growing turmoil in
the Asian financial and currency markets. The market's view on the prospects for
Asia stabilizing and starting to recover continued to drive the bond market as
it broke below 6% on the long end. On the domestic front, the pace of economic
activity clearly picked up in the fourth quarter as monthly nonfarm payroll
growth averaged 358,000, bringing the unemployment rate down to 4.7% at year
end. Fourth quarter trends in hours worked and hourly earnings were very strong
coincident with historic levels of consumer confidence. Manufacturing activity
and housing starts both perked up in the fourth quarter. While the U.S. economy
remains very buoyant, inflation has been conspicuously absent in both the
consumer and producer sectors. The Consumer Price Index increased 0.1% in
December and 1.7% for all of 1997, compared to a 3.3% gain in 1996. Wholesale
prices, as reflected in the Producer Price Index, fell 0.2% in December and
dropped 1.2% for the year versus a 2.8% increase in 1996. Wage inflation has
been modest and not yet passed through in the form of higher prices to
consumers. In sum, while economic indicators point to a strong economy on an
above trend growth track, the near absence of inflation, recent drop in
commodity prices and potential drag stemming from Asia's difficulties have left
the Fed on hold as far as a change in interest rates. In fact, market sentiment
has shifted to the view that the next Fed move will be an easing, a conclusion
we have not yet adopted.
The yield curve grew increasingly flatter in the fourth quarter. Investors
responded to the problems in Asia, rebounding economic conditions and the Fed's
restraint against additional tightening of monetary policy by continuing a rally
on the long end begun after the March 1997 Fed move. Interest rates declined by
48 basis points (1/100 of a percentage point) in the fourth quarter from a yield
of 6.40% at the end of the third quarter to 5.92% at the end of the fourth
quarter. However, the short end backed up with the yield on the three month
T-bill rising from 5.09% at the end of the third quarter to 5.34% at year end.
The prevailing market sentiment is that the Fed is on hold near term with the
expectation that an eventual easing will be undertaken perhaps in the second
quarter. Raising the average maturity of the portfolio will be undertaken only
on an opportunistic basis. At December 31, 1997, the average maturity of the
portfolio was approximately 35.4 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 places without sacrificing current income. The 30-day
and 7-day current yields of the portfolio were each 5.29% as of December 31,
1997, after charges imposed by the Portfolio. For the one year period ended
December 31, 1997, the Portfolio earned a total return of 5.15%. For the five
and ten year periods ended December 31, 1997, the Portfolio earned a total
return of 4.47% and 5.47%, respectively.
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.
75
<PAGE> 87
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 93.5%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 0.7%
Boeing Co. 400 $ 19,575
-------------------
AIR TRANSPORTATION -- 3.5%
AMR Corp.* 200 25,700
Delta Airlines Inc. 300 35,700
UAL Corp.* 400 37,000
-------------------
98,400
-------------------
AUTOMOBILES -- 1.7%
Ford Motor Co. 500 24,344
General Motors Corp. Class (E) 400 24,250
-------------------
48,594
-------------------
BANKS/MAJOR -- 3.6%
BankAmerica Corp. 400 29,200
Chase Manhattan Corp. 300 32,850
Citicorp 300 37,931
-------------------
99,981
-------------------
BANKS/REGIONAL -- 5.7%
BankBoston Corp. 500 46,968
First Union Corp. 800 41,000
Fleet Financial 300 22,481
Mellon Bank Corp. 400 24,250
NationsBank Corp. 400 24,325
-------------------
159,024
-------------------
BEVERAGES-SOFT DRINKS -- 2.1%
Coca-Cola Co. 900 59,963
-------------------
BIO-TECHNOLOGIES -- 0.8%
Amgen Inc.* 400 21,650
-------------------
CABLE TELEVISION -- 1.2%
At Home Corp. Class A* 100 2,513
Comcast Corp. Class A 1000 31,562
-------------------
34,075
-------------------
CHEMICALS -- 3.0%
du Pont (E.I.) de Nemours &
Co. 600 36,037
Hercules, Inc. 400 20,025
Monsanto Co. 500 21,000
Solutia Inc. 300 8,006
-------------------
85,068
-------------------
COSMETICS -- 1.1%
Gillette Co. 300 30,131
-------------------
DRUGS -- 8.6%
American Home Products Corp. 200 15,300
Bristol Meyers Squibb Co. 200 18,925
Lilly (Eli) & Co. 600 41,775
Merck & Co., Inc. 300 31,875
Pfizer Inc. 400 29,824
Schering-Plough Corp. 400 24,850
SmithKline Beecham, PLC, ADR 800 41,150
Warner Lambert Co. 300 37,200
-------------------
240,899
-------------------
ELECTRICAL EQUIPMENT -- 4.4%
Emerson Electric Co. 600 33,862
General Electric Co. 1,200 88,050
-------------------
121,912
-------------------
ELECTRONICS -- 5.4%
AMP Inc. 800 $ 33,600
Applied Materials, Inc.* 300 9,038
Hewlett-Packard Co. 400 25,000
Intel Corp. 700 49,175
Motorola, Inc. 300 17,118
Texas Instruments, Inc. 400 18,000
-------------------
151,931
-------------------
ENTERTAINMENT -- 3.2%
Disney (Walt) Co. 400 39,625
Ensco International 400 13,400
Time Warner, Inc. 600 37,200
-------------------
90,225
-------------------
HOSPITAL MANAGEMENT -- 3.1%
Aetna Inc. 300 21,169
Oxford Health Plans, Inc.* 200 3,112
Sunrise Assisted Living, Inc.* 1,000 43,125
United Healthcare Corp. 400 19,875
-------------------
87,281
-------------------
HOSPITAL SUPPLIES -- 1.8%
Johnson & Johnson 600 39,525
Schick Technologies* 500 9,719
-------------------
49,244
-------------------
INSURANCE -- 3.3%
American International Group,
Inc. 450 48,938
General Re Corp. 200 42,400
-------------------
91,338
-------------------
MACHINERY -- 2.7%
Case Corp. 300 18,131
Caterpillar, Inc. 300 14,569
Deere & Co. 400 23,325
Ingersoll-Rand Co. 500 20,250
-------------------
76,275
-------------------
METALS -- 1.0%
Aluminum Company of America 400 28,150
-------------------
OFFICE & BUSINESS EQUIP. -- 6.0%
Compaq Computer Corp.* 500 28,218
Electronic Data Systems Corp. 400 17,575
International Business
Machines Corp. 300 31,369
Micron Technology, Inc. 300 7,800
Microsoft, Corp.* 300 38,775
Oracle Corp.* 600 13,387
Sun Microsystems, Inc.* 800 31,900
-------------------
169,024
-------------------
OIL -- DOMESTIC -- 1.2%
Amoco Corp. 200 17,025
Atlantic Richfield Co. 200 16,025
-------------------
33,050
-------------------
</TABLE>
See notes to financial statements.
76
<PAGE> 88
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- INTERNATIONAL -- 4.9%
British Petroleum, PLC, ADR 302 $ 24,065
Chevron Corp. 300 23,100
Exxon Corp. 400 24,475
Mobil Corp. 300 21,656
Royal Dutch Petroleum Co. 400 21,675
Texaco, Inc. 400 21,750
-------------------
136,721
-------------------
OIL -- SERVICES -- 3.7%
Baker Hughes, Inc. 300 13,088
Diamond Offshore Drilling,
Inc. 200 9,625
EVI Inc.* 200 10,350
Falcon Drilling Company, Inc. 500 17,531
Halliburton Co. 300 15,581
Noble Drilling Corp.* 400 12,250
Reading & Bates Corp.* 200 8,375
Schlumberger Ltd. 200 16,100
-------------------
102,900
-------------------
PAPER -- 2.0%
Fort James Corp. 600 22,950
International Paper Co. 300 12,937
Kimberly-Clark Corp. 400 19,725
-------------------
55,612
-------------------
PUBLISHING -- 1.3%
Central Newspapers, Inc. Class
A 500 36,969
-------------------
RETAIL -- 3.4%
Dayton-Hudson Corp. 300 20,250
GAP (The) Inc. 750 26,578
Home Depot Inc. 500 29,438
Nordstrom Inc. 300 18,112
-------------------
94,378
-------------------
SOAPS -- 1.4%
Procter & Gamble Co. 500 39,906
-------------------
TELECOMMUNICATIONS -- 9.8%
Bell Atlantic Corp. 400 36,400
China Telecom Hong Kong, Ltd.
ADR* 500 16,781
Cisco Systems, Inc.* 600 33,450
Edward, J.D. & Co.* 500 14,750
Qwest Communications
International Inc. 500 29,750
SBC Communications Inc. 400 29,300
Sprint, Corp. 400 23,450
Tele Communications Inc.
Series A* 1,000 27,937
Teleport Communications Group
Inc. Class A* 600 32,925
Worldcom Inc.* 1,000 30,250
-------------------
274,993
-------------------
TOBACCO -- 1.3%
Philip Morris Cos., Inc. 800 $ 36,247
-------------------
US AGENCY OBLIGATIONS -- 1.6%
Federal Home Loan Mortgage
Corp. 500 20,968
Federal National Mortgage
Assn. 400 22,825
-------------------
43,793
-------------------
TOTAL COMMON STOCKS
(COST $1,815,262) $ 2,617,309
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
-------------------
<S> <C> <C>
COMMERCIAL PAPER -- 3.6%
- -----------------------------------------------------------------------------
CIT Group Holdings Inc., 5.81%,
due 01/16/98 (COST $99,758) $ 100,000 $ 99,758
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $1,915,020) -- 97.1% $ 2,717,067
OTHER ASSETS LESS LIABILITIES -- 2.9% 82,039
- -----------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 2,799,106
===============================================================
The aggregate cost of securities for federal income tax purposes at December
31, 1997 is $1,916,056.
The following amounts are based on costs for federal income tax purposes:
Aggregate gross unrealized appreciation $ 812,056
Aggregate gross unrealized depreciation (11,045)
-------------------
Net unrealized appreciation $ 801,011
=========
</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.
77
<PAGE> 89
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 99.2%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE -- 2.2%
Northrop Grumman Corp. 2,000 $ 230,000
United Technologies Corp. 3,000 218,436
----------
448,436
----------
AUTOMOBILES -- 1.8%
Ford Motor Co. 4,000 194,748
General Motors Corp. 3,000 181,875
----------
376,623
----------
AUTOMOTIVE PARTS -- 2.7%
Dana Corp. 6,000 285,000
Eaton Corp. 3,000 267,750
----------
552,750
----------
BANKS/MAJOR -- 4.7%
Bank of New York Inc. 4,000 231,248
BankAmerica Corp. 4,000 292,000
Bankers Trust New York Corp. 2,000 224,874
Chase Manhattan Corp. 2,000 219,000
----------
967,122
----------
BANKS/REGIONAL -- 6.6%
BankBoston Corp. 3,000 281,811
First Union Corp. 5,500 281,875
Fleet Financial Group, Inc. 1,500 112,406
Mellon Bank Corp. 3,500 212,188
NationsBank Corp. 3,000 182,436
Wells Fargo & Co. 900 305,493
----------
1,376,209
----------
CHEMICALS -- 3.4%
duPont (E.I.) de Nemours & Co. 5,000 300,310
Monsanto Co. 5,000 210,000
Olin Corp. 4,000 187,500
----------
697,810
----------
CONGLOMERATES -- 2.9%
General Signal Corp. 4,000 168,748
Harsco Corp. 4,000 172,500
Textron Inc. 4,000 250,000
----------
591,248
----------
COSMETICS -- 1.2%
Avon Products, Inc. 4,000 245,500
----------
DRUGS -- 9.1%
American Home Products Corp. 3,500 267,750
Baxter International, Inc. 4,000 201,748
Bristol Myers Squibb Co. 2,500 236,563
Lilly (Eli) & Co. 3,000 208,875
Merck and Co., Inc. 1,500 159,375
Schering -- Plough Corp. 4,000 248,500
SmithKline Beecham PLC 6,000 308,621
Warner Lambert Co. 2,000 248,000
----------
1,879,432
----------
ELECTRICAL EQUIPMENT -- 4.5%
Emerson Electric Co. 5,000 $ 282,185
General Electric Co. 9,000 660,375
----------
942,560
----------
ELECTRONICS -- 2.1%
AMP, Inc. 6,000 252,000
Thomas & Betts Corp. 4,000 189,000
----------
441,000
----------
FOOD PRODUCTS -- 1.0%
General Mills, Inc. 1,500 107,438
Quaker Oats Co.* 2,000 105,500
----------
212,938
----------
FOREST PRODUCTS -- 0.6%
Georgia -- Pacific Corp. 1,000 22,625
Weyerhaeuser Co. 2,000 98,124
----------
120,749
----------
INSURANCE -- 3.4%
CIGNA Corp. 1,500 259,593
Lincoln National Corp. 3,000 234,375
St. Paul Cos., Inc. 2,500 205,155
----------
699,123
----------
MACHINERY -- 2.1%
Cooper Industries, Inc. 4,000 196,000
Timken Co. 7,000 240,625
----------
436,625
----------
METALS -- 1.3%
Carpenter Technology Corp. 3,000 144,186
Reynolds Metals Co. 2,000 120,000
----------
264,186
----------
MISCELLANEOUS -- 1.2%
Minnesota Mining & Manufacturing 1,500 123,093
Public Storage Inc. 4,000 117,500
----------
240,593
----------
NATURAL GAS -- 3.3%
Consolidated Natural Gas Co. 4,000 242,000
El Paso Natural Gas Co. 3,500 232,750
MCN Energy Group Inc. 1,000 40,375
Questar, Corp. 4,000 178,500
----------
693,625
----------
OFFICE & BUSINESS
EQUIPMENT -- 2.7%
Pitney -- Bowes, Inc. 3,000 269,811
Xerox Corp. 4,000 295,248
----------
565,059
----------
OIL -- DOMESTIC -- 1.4%
Amoco, Corp. 1,500 127,688
Atlantic Richfield Co. 2,000 160,250
----------
287,938
----------
</TABLE>
See notes to financial statements.
78
<PAGE> 90
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- INTERNATIONAL -- 4.8%
British Petroleum PLC ADR 2,022 $ 161,127
Chevron Corp. 2,000 154,000
Exxon Corp. 3,000 183,560
Mobil Corp. 2,500 180,468
Royal Dutch Petroleum Co. 3,000 162,561
Texaco Inc. 3,000 163,125
----------
1,004,841
----------
OIL -- SERVICE & DRILLING -- 2.9%
Dresser Industries, Inc. 6,000 251,622
Williams (The) Companies, Inc. 6,000 340,500
----------
592,122
----------
PAPER -- 1.8%
Georgia -- Pacific Group 1,000 60,750
International Paper Co. 2,000 86,250
Kimberly -- Clark Corp. 2,500 123,280
Union Camp Corp. 2,000 107,374
----------
377,654
----------
PHOTOGRAPHY -- 0.3%
Eastman Kodak Co. 1,000 60,812
----------
PUBLISHING -- 1.4%
McGraw -- Hill Companies, Inc. 4,000 296,000
----------
RAILROADS -- 1.3%
Norfolk Southern Corp. 5,000 154,060
Union Pacific Corp. 2,000 124,874
----------
278,934
----------
REAL ESTATE INVESTMENT
TRUSTS -- 4.4%
Bay Apartment Community, Inc. 2,000 78,000
Crescent Real Estate Equities
Trust 4,000 157,500
Developers Diversified Realty
Corp. 2,500 95,625
Equity Office Properties Trust 2,000 63,124
Equity Residential Properties
Trust 2,000 101,124
Felcor Suite Hotels Inc. 3,500 124,250
Health Care Property Investors,
Inc. 5,000 189,060
Irvine Apartment Communities,
Inc 3,500 111,341
----------
920,024
----------
RETAIL SERVICES -- 1.0%
Penney (J.C.) & Co., Inc. 1,000 60,312
Sears Roebuck & Co. 3,000 135,750
----------
196,062
----------
SAVINGS & LOAN -- 3.5%
Ahmanson (H.F.) & Co. 6,000 401,622
Washington Mutual Inc. 5,000 319,060
----------
720,682
----------
SOAPS -- 1.1%
Colgate -- Palmolive Co. 3,000 220,500
----------
TELECOMMUNICATIONS
EQUIPMENT -- 1.3%
Harris Corp. 6,000 $ 275,250
----------
TOBACCO -- 2.1%
Fortune Brands, Inc. 4,000 148,248
Gallaher Group PLC ADR 3,500 74,813
Philip Morris Companies, Inc. 4,500 203,904
----------
426,965
----------
UTILITIES -- ELECTRIC -- 2.4%
American Electric Power, Inc. 3,000 154,875
Carolina Power & Light Co. 4,000 169,748
FPL Group, Inc. 3,000 177,561
----------
502,184
----------
UTILITIES -- TELEPHONE -- 11.9%
AT&T Corp. 5,000 306,250
Ameritech Corp. 3,500 281,750
Bell Atlantic Corp. 5,000 455,000
Bellsouth Corp. 4,500 253,404
Frontier Corp. 6,000 144,372
GTE Corp. 4,000 209,000
SBC Communications Inc. 5,000 366,250
Sprint Corp. 4,500 263,812
U.S. West Communications Group 4,000 180,500
----------
2,460,338
----------
US GOVERNMENT AGENCY -- 0.8%
Federal National Mortgage Assn. 3,000 171,186
----------
TOTAL COMMON STOCKS
(COST $13,029,179) $ 20,543,080
PREFERRED STOCK -- 0.3%
Aetna Inc., 6.25%, Class C (COST
$76,372) 1,000 $ 71,500
TOTAL INVESTMENTS
(COST $13,105,551) -- 99.5% $ 20,614,580
OTHER ASSETS LESS LIABILITIES -- 0.5% 106,306
NET ASSETS -- 100.0% $ 20,720,886
The aggregate cost of securities for federal income tax purpose at December
31, 1997 is $13,093,092.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 7,606,901
Aggregate gross unrealized depreciation (85,413)
----------
Net unrealized appreciation $ 7,521,488
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
ADR = American Depository Receipt.
Percentages are based on net assets.
79
<PAGE> 91
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 53.2%
- ---------------------------------------------------------------
Associates Corp. of North America,
6.00%, due 06/15/00 $1,000,000 $ 996,220
BankBoston Corp., subordinated
note,
6.625%, due 02/01/04 1,000,000 1,004,790
Bear Stearns Co. Inc.,
7.25%, due 10/15/06 1,000,000 1,040,120
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 1,102,920
CSX Corp.,
7.25%, due 05/01/04 144A 1,000,000 1,037,380
Chase Capital Series C,
6.10%, due 03/01/27+ 1,000,000 962,620
Chase Manhattan Corp.,
subordinated note,
6.75%, due 08/15/08 1,000,000 1,015,470
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 1,022,940
Connecticut Light & Power Co.,
7.25%, due 07/01/99 1,000,000 998,580
First Chicago Corp.,
9.00%, due 06/15/99 1,000,000 1,040,460
First Data Corp.,
6.75%, due 07/15/05 1,000,000 1,019,650
Ford Motor Credit Co.,
6.50%, due 02/28/02 1,000,000 1,007,140
General Electric Capital Corp.,
6.66%, due 05/01/18 1,000,000 1,013,330
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,037,310
Laidlaw Inc.,
7.70%, due 08/15/02 1,000,000 1,051,480
Lockheed Martin Corp.,
6.55%, due 05/15/99 1,000,000 1,005,420
National Rural Utilities,
6.75%, due 09/01/01 1,000,000 1,022,280
Occidental Petroleum Corp.,
7.08%, due 01/12/98 1,000,000 1,000,210
Philip Morris Companies, Inc.,
7.50%, due 04/01/04 1,000,000 1,044,630
Potash Corp. of Saskatchewan Inc.,
7.125%, due 06/15/07 1,000,000 1,040,830
Potomac Edison Co.,
8.00%, due 06/01/06 1,000,000 1,032,560
Provident Bank,
6.375%, due 01/15/04 1,000,000 989,580
USA Waste Services Inc.,
7.00%, due 10/01/04 1,000,000 1,022,630
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $22,918,231) $ 23,508,550
- -------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 4.1%
- -------------------------------------------------------------------------
Chemical Master Credit Card Trust
Series 1996-2 Class A,
5.98%, due 09/15/08 $1,000,000 $ 984,980
Structured Asset Securities Corp.
Series 1996-CFL Class A-1c,
5.944%, due 02/25/28 819,634 812,642
----------------
TOTAL ASSET BACKED SECURITIES
(COST $1,819,253) $ 1,797,622
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.0%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.59%, due 01/09/98 $ 100,000 $ 99,876
Federal Home Loan Mortgage Corp.,
5.70%, due 01/09/98 $ 200,000 $ 199,747
Federal Home Loan Mortgage Corp.,
5.71%, due 01/15/98 300,000 299,334
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.50%, due 02/15/21 2,000,000 2,018,200
Federal National Mortgage Assn.,
5.47%, due 01/05/98 400,000 399,776
Federal National Mortgage Assn.,
5.62%, due 01/07/98 275,000 274,742
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.00%, due 01/25/03 1,000,000 1,023,290
Student Loan Marketing Assn.,
6.069%, due 10/25/10 1,000,000 991,094
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $5,225,328) $ 5,306,059
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 18.6%
- -------------------------------------------------------------------------
U.S. Treasury Note,
6.875%, due 07/31/99 $2,000,000 $ 2,035,000
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 1,007,180
U.S. Treasury Note,
6.625%, due 07/31/01 1,000,000 1,028,430
U.S. Treasury Note,
6.500%, due 05/31/02 1,000,000 1,029,370
U.S. Treasury Note,
7.500%, due 02/15/05 1,000,000 1,098,750
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $8,103,713) $ 8,228,730
- -------------------------------------------------------------------------
COMMERCIAL PAPER -- 10.6%
- -------------------------------------------------------------------------
Conagra, Inc.,
6.15%, due 01/02/98 $2,000,000 $ 1,999,658
CIT Group Holdings Inc.,
5.81%, due 01/16/98 1,700,000 1,695,885
Sears Roebuck Acceptance Corp.,
6.07%, due 01/09/98 200,000 199,730
Texaco Inc.,
5.74%, due 01/14/98 800,000 798,342
----------------
TOTAL COMMERCIAL PAPER
(COST $4,693,616) $ 4,693,615
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $42,760,141) -- 98.5% $ 43,534,576
OTHER ASSETS LESS LIABILITIES -- 1.5% 682,418
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 44,216,994
===============================================================
The aggregate cost of securities for federal income tax purpose at
December 31, 1997 is $42,790,633.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 794,795
Aggregate gross unrealized depreciation (50,852)
----------------
Net unrealized appreciation $ 743,943
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
+ Floating rate security. Rate is as of December 31, 1997.
80
<PAGE> 92
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 49.6%
- -------------------------------------------------------------------------
Aetna Services Inc.,
7.625%, due 08/15/26 $ 1,000,000 $ 1,055,740
Apache Corp.,
7.625%, due 11/01/2096 1,000,000 1,085,160
Boeing Co.,
8.625%, due 11/15/31 1,000,000 1,267,370
British Columbia, Province of,
7.25%, due 09/01/36 1,000,000 1,102,920
Capita Equipment Receivable Trust,
Series 1997-1, Class C,
6.48%, due 10/16/06 1,000,000 994,220
Chase Manhattan Corp.,
6.75%, due 08/15/08 1,000,000 1,015,470
Columbia/HCA Healthcare Corp.,
7.69%, due 06/15/25 1,000,000 975,960
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 1,022,940
Crown Cork and Seal Co., Inc.,
7.375%, due 12/15/26 1,000,000 1,051,590
Enersis S.A.,
7.40%, due 12/01/16 1,000,000 1,034,020
Federal Express Corp., Series
97-A, 7.50%, due 1/15/18 2,000,000 2,125,640
Fifth Third Cap Trust I, Series A,
8.136%, due 03/15/27 2,000,000 2,226,680
General Electric Capital Corp.,
8.30%, due 09/20/09 2,000,000 2,311,200
General Motors Corp.,
7.00%, due 06/15/03 1,000,000 1,034,580
GTE South Inc., Series D,
7.50%, due 03/15/26 1,000,000 1,049,810
Hydro-Quebec,
8.50%, due 12/01/29 1,000,000 1,203,350
James River Corp.,
7.75%, due 11/15/23 1,000,000 1,078,830
Laidlaw Inc.,
7.875%, due 04/15/05 1,000,000 1,079,150
Legrand SA,
8.50%, due 02/15/25 1,000,000 1,204,790
Lockheed Martin Corp.,
7.65%, due 05/01/16 1,000,000 1,081,280
MBIA, Inc.,
7.15%, due 07/15/27 1,000,000 1,047,270
Morgan Stanley Group Inc.,
6.875%, due 03/01/07 1,000,000 1,022,180
National City Bank,
7.25%, due 07/15/10 1,000,000 1,060,860
Norfolk Southern Corp.,
7.80%, due 05/15/27 1,000,000 1,128,090
Philip Morris Companies, Inc.,
7.25%, due 09/15/01 1,000,000 1,029,150
Rohm & Haas Co.,
9.50%, due 04/01/21 1,000,000 1,144,240
Seagram (J.E.) & Sons, Inc.,
9.65%, due 08/15/18 1,000,000 1,311,850
Swiss Bank Corp.,
7.75%, due 09/01/26 2,000,000 2,221,160
Texaco Capital, Inc.,
9.75%, due 03/15/20 $ 1,000,000 $ 1,344,530
USA Waste Services Inc.,
7.00%, due 10/01/04 1,000,000 1,022,630
----------------
TOTAL CORPORATE BONDS AND NOTES
(COST $34,736,309) $ 37,332,660
- -------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.4%
- -------------------------------------------------------------------------
Standard Credit Card Master Trust,
Series 94-2A, Class A,
7.25%, due 04/07/06 $ 1,000,000 $ 1,056,530
----------------
TOTAL ASSET BACKED SECURITIES
(COST $1,045,808) $ 1,056,530
- -------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.9%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.73%, due 01/06/98 $ 150,000 $ 149,881
Federal Home Loan Mortgage Corp.,
5.70%, due 01/09/98 425,000 424,462
Federal Home Loan Mortgage Corp.,
6.85%, due 01/15/22 1,000,000 1,024,220
Federal National Mortgage Assn.,
5.47%, due 01/05/98 200,000 199,888
Federal National Mortgage Assn.,
5.62%, due 01/07/98 50,000 49,953
Federal National Mortgage Assn.,
5.68%, due 01/07/98 100,000 99,905
Federal National Mortgage Assn.,
5.47%, due 02/05/98 150,000 149,606
Federal National Mortgage Assn.,
REMIC, Trust 92-198,
7.50%, due 09/25/22 2,000,000 2,090,880
Student Loan Marketing Assn.,
5.95%, due 07/25/09+ 1,000,000 997,840
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $4,841,970) $ 5,186,635
- -------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 37.2%
- -------------------------------------------------------------------------
U.S. Treasury Bond,
7.875%, due 02/15/21 $ 2,500,000 $ 3,069,525
U.S. Treasury Bond,
7.625%, due 02/15/25 9,500,000 11,527,585
U.S. Treasury Bond,
6.500%, due 11/15/26 2,500,000 2,668,750
U.S. Treasury Bond,
6.625%, due 02/15/27 3,500,000 3,798,585
U.S. Treasury Note,
7.750%, due 12/31/99 500,000 519,530
U.S. Treasury Note,
6.250%, due 10/31/01 500,000 508,750
U.S. Treasury Note,
7.000%, due 07/15/06 2,000,000 2,159,360
U.S. Treasury Strips,
0.000%, due 05/15/18 12,900,000 3,786,408
----------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $25,558,207) $ 28,038,493
- -------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
81
<PAGE> 93
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMERCIAL PAPER -- 3.2%
- -------------------------------------------------------------------------
CIT Group Holdings Inc.,
5.81%, due 01/16/98 $ 400,000 $ 399,032
General Electric Capital Corp.,
5.55%, due 01/22/98 250,000 249,646
Prudential Funding Corp.,
5.62%, due 01/06/98 150,000 149,883
Sears, Roebuck Acceptance Corp.,
6.07%, due 01/09/98 100,000 99,865
Texaco Inc.,
5.74%, due 01/14/98 1,525,000 1,521,839
----------------
TOTAL COMMERCIAL PAPER
(COST $2,419,810) $ 2,420,265
- -------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $68,602,104) -- 98.3% $ 74,034,583
OTHER ASSETS LESS LIABILITIES -- 1.7% 1,318,181
- -------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 75,352,764
===============================================================
The aggregate cost of securities for federal income tax purposes at
December 31, 1997 is $68,632,596.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 5,478,985
Aggregate gross unrealized depreciation (76,998)
----------------
Net unrealized appreciation $ 5,401,987
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
+ Floating rate security. Rate is as of December 31, 1997.
82
<PAGE> 94
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 79.2%
- ---------------------------------------------------------------
AIR TRANSPORTATION -- 3.4%
AMR Corp.* 300 $ 38,550
Delta Airlines Inc. 300 35,700
UAL Corp.* 400 37,000
----------------
111,250
----------------
AUTOMOBILES -- 1.7%
Ford Motor Co. 500 24,343
General Motors Corp. 500 30,313
----------------
54,656
----------------
BANKS/MAJOR -- 3.6%
Chase Manhattan Corp. 300 32,850
Citicorp 300 37,931
BankAmerica Corp. 600 43,800
----------------
114,581
----------------
BANKS/REGIONAL -- 4.5%
BankBoston Corp. 500 46,968
First Union Corp. 900 46,125
Fleet Financial Group, Inc. 300 22,481
Mellon Bank Corp. 500 30,313
----------------
145,887
----------------
BEVERAGES/NON ALCOHOLIC -- 1.9%
Coca-Cola, Co. 900 59,963
----------------
CABLE TELEVISION -- 1.8%
Comcast Corp. Class A 1,000 31,562
Tele Communications Inc. Series
A* 1,000 27,937
----------------
59,499
----------------
CHEMICALS -- 2.9%
duPont (E.I.) de Nemours & Co. 600 36,037
Hercules, Inc. 500 25,031
Monsanto Co. 500 21,000
Solutia Inc. 400 10,675
----------------
92,743
----------------
COSMETICS -- 0.9%
Gillette Co. 300 30,131
----------------
DRUGS -- 7.1%
American Home Products Corp. 300 22,950
Bristol Myers Squibb Co. 300 28,387
Lilly (Eli) & Co. 200 13,925
Merck & Co., Inc. 300 31,875
Pfizer Inc. 400 29,825
Schering-Plough Corp. 400 24,850
SmithKline Beecham PLC, ADR 800 41,150
Warner Lambert Co. 300 37,200
----------------
230,162
----------------
ELECTRICAL EQUIPMENT -- 4.6%
Emerson Electric Co. 800 45,150
General Electric, Co. 1,400 102,725
----------------
147,875
----------------
ELECTRONICS -- 5.1%
AMP, Inc. 800 $ 33,600
Applied Materials, Inc.* 300 9,037
Hewlett-Packard Co. 500 31,250
Intel Corp. 700 49,175
Motorola, Inc. 400 22,825
Texas Instruments, Inc. 400 18,000
----------------
163,887
----------------
ENTERTAINMENT -- 2.4%
Disney (Walt) Co. 400 39,625
Time Warner, Inc. 600 37,200
----------------
76,825
----------------
HOSPITAL MANAGEMENT -- 1.5%
Aetna Inc. 300 21,169
Oxford Health Plans, Inc.* 200 3,112
United Healthcare Corp. 500 24,844
----------------
49,125
----------------
HOSPITAL SUPPLIES -- 1.5%
Johnson & Johnson 600 39,525
Schick Technologies Inc.* 500 9,719
----------------
49,244
----------------
HOUSEHOLD PRODUCTS -- 3.4%
Fort James Corp. 900 34,425
Kimberly-Clark Corp. 400 19,725
Proctor & Gamble Co. 700 55,868
----------------
110,018
----------------
INSURANCE -- 3.3%
American International Group,
Inc. 600 65,250
General Re Corp. 200 42,400
----------------
107,650
----------------
MACHINERY -- 2.5%
Case Corp. 300 18,131
Caterpillar, Inc. 300 14,569
Deere & Co. 400 23,325
Ingersoll-Rand Co. 600 24,300
----------------
80,325
----------------
OFFICE & BUSINESS EQUIPMENT -- 5.2%
Compaq Computer Corp.* 500 28,218
Electronics Data Systems Corp. 400 17,575
International Business Machines
Corp. 300 31,369
Micron Technology, Inc. 300 7,800
Microsoft Corp.* 300 38,775
Oracle Corp.* 600 13,387
Sun Microsystems, Inc.* 800 31,900
----------------
169,024
----------------
OIL -- DOMESTIC -- 0.7%
Atlantic Richfield Co. 300 24,038
----------------
OIL -- INTERNATIONAL -- 4.8%
Amoco Corp. 200 17,025
British Petroleum, PLC, ADR 302 24,065
Chevron Corp. 300 23,100
Exxon Corp. 400 24,475
Mobil Corp. 300 21,656
Royal Dutch Petroleum Co. 400 21,675
Texaco, Inc. 400 21,750
----------------
153,746
----------------
</TABLE>
See notes to financial statements.
83
<PAGE> 95
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- SERVICES -- 3.8%
Baker Hughes, Inc. 300 $ 13,087
Diamond Offshore Drilling Inc. 200 9,625
Ensco International Inc. 400 13,400
EVI Inc.* 200 10,350
Falcon Drilling Inc. 500 17,531
Halliburton Co. 300 15,581
Noble Drilling Corp.* 500 15,313
Reading & Bates Corp.* 300 12,563
Schlumberger Ltd. 200 16,100
----------------
123,550
----------------
RETAIL -- 3.1%
Dayton-Hudson Corp. 400 27,000
Gap (The) Inc. 750 26,578
Home Depot Inc. 500 29,437
Nordstrom Inc. 300 18,113
----------------
101,128
----------------
TELECOMMUNICATIONS -- 7.2%
Bell Atlantic Corp. 400 36,400
Cisco Systems, Inc.* 600 33,450
Qwest Communications Int'l. Inc.* 500 29,750
SBC Communications Inc. 400 29,300
Sprint Corp. 500 29,313
Teleport Communications Group,
Inc. Class A* 600 32,925
Worldcom Inc.* 1,200 36,300
----------------
227,438
----------------
TOBACCO -- 0.8%
Philip Morris Cos., Inc. 600 27,184
----------------
U.S. GOVERNMENT AGENCIES -- 1.5%
Federal Home Loan Mortgage Corp. 600 $ 25,162
Federal National Mortgage Assn. 400 22,825
----------------
47,987
TOTAL COMMON STOCKS
(COST $1,709,315) $ 2,557,916
- --------------------------------------------------------------------------
COMMERICAL PAPER -- 3.1%
- ---------------------------------------------------------------
Texaco Inc., 5.74%, due 01/14/98
(COST $99,793) $100,000 $ 99,793
----------------
U. S. TREASURY OBLIGATION -- 16.5%
- ---------------------------------------------------------------
U.S. Treasury Note, 7.50%, due
05/15/02 (COST $514,977) $500,000 $ 533,905
- --------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,324,085) -- 98.8% $ 3,191,614
OTHER ASSETS LESS LIABILITIES -- 1.2% 37,775
- --------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 3,229,389
===============================================================
The aggregate cost of securities for federal income tax purposes at
December 31, 1997 is $2,324,085.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 876,761
Aggregate gross unrealized depreciation (9,232)
----------------
Net unrealized appreciation $ 867,529
=========
</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.
84
<PAGE> 96
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 25.7%
U.S. Treasury Bill,
5.00%, due 02/19/98 $2,400,000 $ 2,383,667
U.S. Treasury Note,
6.00%, due 05/31/98 1,000,000 1,001,870
U.S. Treasury Note,
6.00%, due 08/15/99 1,000,000 1,005,000
U.S. Treasury Note,
5.875%, due 11/15/99 1,000,000 1,003,430
U.S. Treasury Note,
7.75%, due 11/30/99 1,000,000 1,036,870
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $6,380,091) $ 6,430,837
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 73.1%
Federal Farm Credit Banks,
5.63%, due 05/26/98 $2,000,000 $ 1,999,240
Federal Home Loan Mortgage Corp.,
5.73%, due 01/06/98 150,000 149,881
Federal Home Loan Mortgage Corp.,
5.56%, due 01/07/98 350,000 349,675
Federal Home Loan Mortgage Corp.,
5.59%, due 01/09/98 150,000 149,814
Federal Home Loan Mortgage Corp.,
5.70%, due 01/09/98 200,000 199,747
Federal Home Loan Mortgage Corp.,
5.70%, due 01/16/98 225,000 224,466
Federal Home Loan Mortgage Corp.,
6.50%, due 11/15/21 1,500,000 1,513,545
Federal National Mortgage Assn.,
5.47%, due 01/05/98 150,000 149,909
Federal National Mortgage Assn.,
5.62%, due 01/07/98 200,000 199,813
Federal National Mortgage Assn.,
5.68%, due 01/07/98 500,000 499,527
Federal National Mortgage Assn.,
5.67%, due 01/07/98 150,000 149,858
Federal National Mortgage Assn.,
5.58%, due 01/21/98 2,000,000 1,993,800
Federal National Mortgage Assn.,
5.75%, due 01/27/98 850,000 846,470
Federal National Mortgage Assn.,
5.25%, due 09/25/12 $ 24,452 $ 24,222
Federal National Mortgage Assn.
REMIC Trust,
5.75%, due 08/25/18 500,000 495,235
Federal National Mortgage Assn.
REMIC Trust,
7.00%, due 01/25/03 285,000 291,638
Federal National Mortgage Assn.
REMIC Trust,
6.50%, due 10/25/03 1,300,000 1,323,660
Government National Mortgage
Assn.,
7.50%, due 05/15/24 932,271 954,702
Government National Mortgage
Assn.,
7.50%, due 10/15/24 243,244 249,097
Private Export Funding Corp.,
7.01%, due 04/30/04 2,000,000 2,105,900
Tennessee Valley Authority Series
A,
6.375%, due 06/15/05 500,000 510,195
U.S. Government -- HUD,
6.23%, due 08/01/02 2,000,000 2,023,120
U.S. Government -- RFCO,
0.00%, due 10/15/98 2,000,000 1,914,678
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $18,050,778) $ 18,318,192
TOTAL INVESTMENTS
(COST $24,430,869) -- 98.8% $ 24,749,029
OTHER ASSETS LESS LIABILITIES -- 1.2% 316,864
NET ASSETS -- 100.0% $ 25,065,893
The aggregate cost of securities for federal income tax purposes on
December 31, 1997 is $24,430,869.
The following amounts are based on costs for federal income tax
purposes:
Aggregate gross unrealized appreciation $ 318,540
Aggregate gross unrealized depreciation (380)
-----------
Net unrealized appreciation $ 318,160
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
85
<PAGE> 97
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMERCIAL PAPER -- 83.7%
- ---------------------------------------------------------------
American Express Credit Corp.,
6.00%, due 01/13/98 $3,750,000 $ 3,742,500
Ameritech Corp.,
5.89%, due 02/04/98 6,350,000 6,314,676
Associates Corp. of North
America,
5.60%, due 01/13/98 1,900,000 1,896,453
Associates Corp. of North
America,
5.71%, due 01/15/98 550,000 548,779
Avco Financial Services Canada
Ltd.,
5.63%, due 02/17/98 1,000,000 992,650
Avco Financial Services Canada
Ltd.,
5.82%, due 02/23/98 4,000,000 3,965,727
Avco Financial Services Canada
Ltd.,
5.78%, due 03/09/98 2,000,000 1,978,486
Barclay's U.S. Funding Corp.,
5.57%, due 01/09/98 4,700,000 4,694,182
Bell Atlantic Financial Services
Inc.,
5.82%, due 01/12/98 1,950,000 1,946,532
Bell Atlantic Financial Services
Inc.,
5.76%, due 01/15/98 3,900,000 3,891,264
Bell Atlantic Financial Services
Inc.,
6.00%, due 01/21/98 1,000,000 996,667
Bell South Telecom Inc.,
6.10%, due 01/13/98 4,050,000 4,041,765
British Columbia (Province),
5.68%, due 02/12/98 1,800,000 1,788,072
Capital One Bank,
5.85%, due 01/08/98 (a) 3,500,000 3,500,641
Capital One Funding Corp.,
5.85%, due 01/08/98 (a) 3,862,000 3,862,539
Chevron Transport Corp.,
5.62%, due 01/06/98 2,000,000 1,998,439
C.I.T. Group Holdings, Inc.,
5.59%, due 01/22/98 1,800,000 1,794,131
Commercial Credit Corp.,
5.58%, due 02/10/98 3,200,000 3,180,160
Conagra, Inc.,
6.15%, due 01/02/98 1,200,000 1,199,795
CSX Corporation,
6.04%, due 01/07/98 1,000,000 998,993
Enterprise Funding Corp.,
5.86%, due 01/23/98 1,450,000 1,444,808
Export Development Corp.,
5.53%, due 01/16/98 5,550,000 5,537,212
Ford Credit Canada, Ltd.,
5.75%, due 03/25/98 3,000,000 2,960,230
Ford Motor of Canada, Ltd.,
5.84%, due 01/27/98 1,000,000 995,782
FPL Fuels Inc.,
5.70%, due 01/30/98 1,000,000 995,408
General Electric Capital Corp.,
5.58%, due 01/13/98 1,700,000 1,696,838
General Electric Capital Corp.,
5.55%, due 01/22/98 $3,000,000 $ 2,990,288
General Motors Acceptance Corp.,
5.64%, due 01/05/98 2,000,000 1,998,747
General Motors Acceptance Corp.,
5.53%, due 01/06/98 500,000 499,616
General Motors Acceptance Corp.,
5.63%, due 01/07/98 1,700,000 1,698,405
General Motors Acceptance Corp.,
5.55%, due 01/20/98 2,450,000 2,442,824
Goldman Sachs Group, L.P.,
5.95%, due 01/05/98 1,500,000 1,499,008
Heller Financial, Inc.,
6.00%, due 01/16/98 2,700,000 2,693,250
Heller Financial, Inc.,
6.05%, due 01/20/98 2,100,000 2,093,295
Household International Inc.,
5.87%, due 01/14/98 3,000,000 2,993,641
Lehman Brothers Holdings Inc.,
5.85%, due 01/06/98 1,600,000 1,598,700
Lehman Brothers Holdings Inc.,
5.90%, due 01/08/98 1,250,000 1,248,566
Lehman Brothers Holdings Inc.,
6.20%, due 01/30/98 3,000,000 2,985,017
Mellon Financial, Co.,
5.65%, due 02/20/98 3,300,000 3,274,105
Merrill Lynch and Co., Inc.,
5.81%, due 01/16/98 2,900,000 2,892,980
Metropolitan Life Funding Inc.,
5.68%, due 01/22/98 1,850,000 1,843,871
National Rural Utilities,
5.67%, due 04/06/98 2,400,000 2,364,090
Prudential Funding Corp.,
5.59%, due 01/07/98 4,000,000 3,996,273
Sanwa Business Credit Corp.,
6.60%, due 01/02/98 2,000,000 1,999,633
Sanwa Business Credit Corp.,
6.75%, due 01/13/98 2,450,000 2,444,487
Sears Roebuck Acceptance Corp.,
6.07%, due 01/09/98 3,000,000 2,995,953
Sears Roebuck Acceptance Corp.,
5.63%, due 01/15/98 4,000,000 3,991,242
SONY Capital Corp. of America,
5.73%, due 01/07/98 2,600,000 2,597,517
Texaco Inc.,
5.74%, due 01/14/98 1,050,000 1,047,824
Textron Financial Group Inc.,
6.08%, due 01/12/98 1,300,000 1,297,585
Toronto Dominion Bank,
5.50%, due 01/07/98 5,000,000 4,995,417
Union Bank of California N.A.,
5.52%, due 01/05/98 5,000,000 4,996,933
----------------
</TABLE>
See notes to financial statements.
86
<PAGE> 98
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1997
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
TOTAL COMMERCIAL PAPER
(COST $132,441,996) $ 132,441,996
- ------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.8%
- ------------------------------------------------------------------------
Federal Home Loan Bank,
5.81%, due 08/20/98 $3,000,000 $ 3,064,880
Federal Home Loan Bank,
5.69%, due 10/02/98 4,500,000 4,559,745
Federal National Mortgage Assn.,
5.75%, due 01/27/98 1,600,000 1,593,355
----------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $9,217,980) $ 9,217,980
- ------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 8.2%
- ------------------------------------------------------------------------
Asset-Backed Sec. Inv. Trust,
5.96%, due 06/15/98, 144A $5,000,000 $ 5,014,072
Asset-Backed Sec. Inv. Trust,
5.96%, due 08/15/98, 144A 4,000,000 4,011,258
Asset-Backed Sec. Inv. Trust,
Series 1997-1, Class C,
5.96%, due 10/15/98 $4,000,000 $ 4,011,258
----------------
TOTAL ASSET-BACKED SECURITIES
(COST $13,036,588) $ 13,036,588
- ------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- 2.3%
- ------------------------------------------------------------------------
National Westminster Bank PLC,
5.86%, due 08/10/98
(COST $3,640,176) $3,575,000 $ 3,640,176
- ------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $158,336,740) -- 100.0% $ 158,336,740
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.0%) (50,503)
- ------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 158,286,237
===============================================================
</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
December 31, 1997.
Percentages are based on net assets.
87
<PAGE> 99
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
EQUITY GROWTH EQUITY INCOME TERM BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Securities, at value (Note 2)*.................... $ 2,717,067 $20,614,580 $ 43,534,576 $ 74,034,583
Cash.............................................. 77,557 56,256 63,140 61,770
Dividends receivable.............................. 1,441 28,953 0 0
Interest receivable............................... 0 0 610,418 1,279,140
Receivable for fund shares sold................... 0 27,210 164,266 88,723
Receivable for securities sold.................... 8,339 10,071 0 0
Prepaid expense................................... 112 780 1,270 1,904
------------- ------------- ------------- -------------
Total assets.......................................... 2,804,516 20,737,850 44,373,670 75,466,120
------------- ------------- ------------- -------------
LIABILITIES
Payable for fund shares redeemed.................. 27 9 128,693 69,187
Accrued expenses:
Investment advisory fees..................... 1,264 9,290 19,789 33,485
Custodian fees............................... 1,429 3,089 1,142 957
Accounting Fees.............................. 2,309 2,651 3,062 3,517
Professional fees............................ 175 202 233 268
Miscellaneous fees........................... 206 1,723 3,757 5,942
------------- ------------- ------------- -------------
Total liabilities..................................... 5,410 16,964 156,676 113,356
------------- ------------- ------------- -------------
NET ASSETS............................................ $ 2,799,106 $20,720,886 $ 44,216,994 $ 75,352,764
============= ============= ============ ============
Net assets consist of:
Capital stock -- $.01 par value................... $ 776 $ 7,645 $ 39,749 $ 55,228
Additional paid-in capital........................ 1,534,940 9,916,625 41,166,674 65,407,147
Undistributed net investment income............... 8,852 444,144 2,478,951 4,173,497
Undistributed/accumulated net realized gain (loss)
on investments.................................. 452,491 2,843,443 (242,815) 284,413
Net unrealized appreciation of investments........ 802,047 7,509,029 774,435 5,432,479
------------- ------------- ------------- -------------
NET ASSETS............................................ $ 2,799,106 $20,720,886 $ 44,216,994 $ 75,352,764
============= ============= ============ ============
Shares of capital stock outstanding................... 77,576 764,503 3,974,903 5,522,848
------------- ------------- ------------- -------------
Net asset value per share of outstanding capital
stock............................................... $ 36.08 $ 27.10 $ 11.12 $ 13.64
============= ============= ============ ============
*Investments at cost.................................. $ 1,915,020 $13,105,551 $ 42,760,141 $ 68,602,104
<CAPTION>
GOVERNMENT
DIVERSIFIED SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -------------
<S> <C<C> <C> <C>
ASSETS
Securities, at value (Note 2)*.................... $ 3,191,614 $ 24,749,029 $ 158,336,740
Cash.............................................. 28,533 60,672 4,427
Dividends receivable.............................. 1,375 0 0
Interest receivable............................... 4,785 136,089 57,050
Receivable for fund shares sold................... 0 158,075 2,981,795
Receivable for securities sold.................... 8,630 0 0
Prepaid expense................................... 118 184 3,010
------------- ------------- -------------
Total assets.......................................... 3,235,055 25,104,049 161,383,022
------------- ------------- -------------
LIABILITIES
Payable for fund shares redeemed.................. 59 22,777 3,019,120
Accrued expenses:
Investment advisory fees..................... 1,542 10,875 54,585
Custodian fees............................... 1,253 0 2,847
Accounting Fees.............................. 2,328 2,622 5,210
Professional fees............................ 177 199 396
Miscellaneous fees........................... 307 1,683 14,627
------------- ------------- -------------
Total liabilities..................................... 5,666 38,156 3,096,785
------------- ------------- -------------
NET ASSETS............................................ $ 3,229,389 $ 25,065,893 $ 158,286,237
========== ============ =============
Net assets consist of:
Capital stock -- $.01 par value................... $ 1,567 $ 23,025 $ 1,582,862
Additional paid-in capital........................ 1,658,774 23,620,103 156,703,375
Undistributed net investment income............... 49,159 1,106,347 0
Undistributed/accumulated net realized gain (loss)
on investments.................................. 652,360 (1,742) 0
Net unrealized appreciation of investments........ 867,529 318,160 0
------------- ------------- -------------
NET ASSETS............................................ $ 3,229,389 $ 25,065,893 $ 158,286,237
========== ============ =============
Shares of capital stock outstanding................... 156,691 2,302,469 158,286,237
------------- ------------- -------------
Net asset value per share of outstanding capital
stock............................................... $ 20.61 $ 10.89 $ 1.00
========== ============ =============
*Investments at cost.................................. $ 2,324,085 $ 24,430,869 $ 158,336,740
</TABLE>
See notes to financial statements.
88
<PAGE> 100
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the year ended December 31, 1997
- --------------------------------------------------------------------------------
<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......... $ 8,586 $ 24,980 $ 2,684,591 $ 4,488,806 $ 48,314 $1,210,768 $8,628,423
Dividends........ 28,862 513,188 0 0 33,024 0 0
Other............ 2,960 23,692 4,487 6,186 3,196 3,961 7,377
------------- ------------- ------------ ----------- ----------- ---------- ------------
Total
investment
income.... 40,408 561,860 2,689,078 4,494,992 84,534 1,214,729 8,635,800
------------- ------------- ------------ ----------- ----------- ---------- ------------
EXPENSES:
Investment
advisory fees
(Note 3)....... 11,010 85,565 175,171 278,376 14,608 84,926 616,327
Custodian fees... 8,746 11,560 8,942 7,742 8,278 6,337 18,945
Accounting fees
(Note 3)....... 5,457 6,267 7,238 8,314 5,502 6,196 12,314
Professional
fees........... 8,173 9,396 10,866 12,493 8,241 9,291 18,540
Directors fees... 394 3,192 6,551 10,269 551 2,951 24,090
Miscellaneous
fees........... 369 3,533 4,695 7,155 550 2,077 17,098
------------- ------------- ------------ ----------- ----------- ---------- ------------
Total
expenses... 34,149 119,513 213,463 324,349 37,730 111,778 707,314
Expenses
reduced by
a
custodian
fee
arrangement... (2,593) (1,797) (3,336) (2,854) (2,355) (3,396) (7,424)
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net
expenses... 31,556 117,716 210,127 321,495 35,375 108,382 699,890
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net investment
income.............. 8,852 444,144 2,478,951 4,173,497 49,159 1,106,347 7,935,910
------------- ------------- ------------ ----------- ----------- ---------- ------------
REALIZED AND
UNREALIZED GAIN
(LOSS) ON
INVESTMENTS (NOTE
2):
Realized gain
(loss) from
security
transactions
(excluding
short-term
securities):
Proceeds
from
sales..... 1,174,969 8,293,158 25,494,989 23,225,133 1,622,742 1,358,970 0
Cost of
securities
sold...... 717,350 5,460,695 25,637,530 22,679,504 963,019 1,351,196 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net realized gain
(loss) on
investments......... 457,619 2,832,463 (142,541) 545,629 659,723 7,774 0
Net increase in
unrealized
appreciation of
investments......... 208,784 2,149,816 806,052 3,873,480 56,061 301,555 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net realized and
unrealized gain on
investments......... 666,403 4,982,279 663,511 4,419,109 715,784 309,329 0
------------- ------------- ------------ ----------- ----------- ---------- ------------
Net increase in net
assets resulting
from operations..... $ 675,255 $ 5,426,423 $ 3,142,462 $ 8,592,606 $ 764,943 $1,415,676 $7,935,910
=========== =========== ========== ========== ========= ========= ===========
</TABLE>
See notes to financial statements.
89
<PAGE> 101
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO
----------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment income........................................... $ 8,852 $ 12,501 $ 444,144 $ 506,646
Net realized gain (loss) on investments (Note 2)................ 457,619 186,510 2,832,463 1,744,115
Net increase (decrease) in unrealized appreciation of
investments................................................... 208,784 183,439 2,149,816 1,057,847
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from operations..... 675,255 382,450 5,426,423 3,308,608
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4).................................. (68,260) 0 (774,467) (34,413)
Net realized gain from investment transactions (Note 4)......... (133,214) 0 (1,471,218) 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders........... (201,474) 0 (2,245,685) (34,413)
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares............................ 184,444 344,553 321,172 427,851
Proceeds from dividends and distributions reinvested............ 201,474 0 2,245,685 34,413
Net asset value of shares redeemed.............................. (215,262) (445,903) (3,599,056) (3,255,147)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions...................................................... 170,656 (101,350) (1,032,199) (2,792,883)
---------- ---------- ----------- -----------
Net increase in net assets.......................................... 644,437 281,100 2,148,539 481,312
Net assets beginning of year........................................ 2,154,669 1,873,569 18,572,347 18,091,035
---------- ---------- ----------- -----------
Net assets end of year*............................................. $2,799,106 $2,154,669 $20,720,886 $18,572,347
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued.......................................................... 5,772 12,546 12,780 20,290
Issued in reinvestment of dividends and distributions........... 7,139 0 104,450 1,654
Redeemed........................................................ (6,285) (16,217) (144,920) (152,508)
---------- ---------- ----------- -----------
Net increase (decrease)..................................... 6,626 (3,671) (27,690) (130,564)
========== ========== =========== ===========
*Including undistributed net investment income of: $ 8,852 $ 12,501 $ 444,144 $ 500,290
<CAPTION>
INTERMEDIATE TERM
BOND PORTFOLIO LONG TERM BOND PORTFOLIO
------------------------- ---------------------------
1997 1996 1997 1996
----------- ----------- ------------ ------------
<S> <<C> <C> <C> <C>
FROM OPERATIONS:
Net Investment income........................................... $ 2,478,951 $ 2,284,209 $ 4,173,497 $ 3,837,045
Net realized gain (loss) on investments (Note 2)................ (142,541) (66,206) 545,629 605,958
Net increase (decrease) in unrealized appreciation of
investments................................................... 806,052 (844,291) 3,873,480 (4,731,783)
------------ ----------- ------------ ------------
Net increase (decrease) in net assets resulting from operations..... 3,142,462 1,373,712 8,592,606 (288,780)
------------ ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4).................................. (2,284,209) 0 (3,837,045) 0
Net realized gain from investment transactions (Note 4)......... 0 0 0 0
------------ ----------- ------------ ------------
Total dividends and distributions to shareholders........... (2,284,209) 0 (3,837,045) 0
------------ ----------- ------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares............................ 11,465,629 11,119,965 19,278,888 20,808,063
Proceeds from dividends and distributions reinvested............ 2,284,209 0 3,837,045 0
Net asset value of shares redeemed.............................. (10,436,350) (9,968,257) (14,617,547) (20,438,355)
------------ ----------- ------------ ------------
Net increase (decrease) in net assets resulting from share
transactions...................................................... 3,313,488 1,151,708 8,498,386 369,708
------------ ----------- ------------ ------------
Net increase in net assets.......................................... 4,171,741 2,525,420 13,253,947 80,928
Net assets beginning of year........................................ 40,045,253 37,519,833 62,098,817 62,017,889
------------ ----------- ------------ ------------
Net assets end of year*............................................. $44,216,994 $40,045,253 $ 75,352,764 $ 62,098,817
============ =========== ============ ============
SHARES ISSUED AND REDEEMED:
Issued.......................................................... 1,065,196 1,048,172 1,516,701 1,693,456
Issued in reinvestment of dividends and distributions........... 221,552 0 327,953 0
Redeemed........................................................ (967,252) (941,251) (1,158,388) (1,670,244)
------------ ----------- ------------ ------------
Net increase (decrease)..................................... 319,496 106,921 686,266 23,212
============ =========== ============ ============
*Including undistributed net investment income of: $ 2,478,951 $ 2,284,209 $ 4,173,497 $ 3,837,045
</TABLE>
See notes to financial statements.
90
<PAGE> 102
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued) For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO
----------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income............................................... $ 49,159 $ 67,363 $ 1,106,347 $ 695,233
Net realized gain (loss) on investments (Note 2).................... 659,723 193,527 7,774 (9,516)
Net increase (decrease) in unrealized appreciation of investments... 56,061 188,333 301,555 (170,310)
---------- ---------- ----------- -----------
Net increase in net assets resulting from operations.................... 764,943 449,223 1,415,676 515,407
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)...................................... (67,363) 0 (695,233) 0
Net realized gain from investment transactions (Note 4)............. (196,377) 0 0 0
---------- ---------- ----------- -----------
Total dividends and distributions to shareholders.............. (263,740) 0 (695,233) 0
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares................................ 188,701 329,611 11,987,035 12,146,445
Proceeds from dividends and distributions reinvested................ 263,740 0 695,233 0
Net asset value of shares redeemed.................................. (1,104,842) (670,322) (4,720,118) (4,834,445)
---------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from share
transactions.......................................................... (652,401) (340,711) 7,962,150 7,312,000
---------- ---------- ----------- -----------
Net increase (decrease) in net assets................................... (151,198) 108,512 8,682,593 7,827,407
Net assets beginning of year............................................ 3,380,587 3,272,075 16,383,300 8,555,893
---------- ---------- ----------- -----------
Net assets end of year*................................................. $3,229,389 $3,380,587 $25,065,893 $16,383,300
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued.............................................................. 9,906 19,825 1,129,743 1,180,708
Issued in reinvestment of dividends and distributions............... 15,793 0 68,160 0
Redeemed............................................................ (56,930) (40,085) (444,602) (469,910)
---------- ---------- ----------- -----------
Net increase (decrease)........................................ (31,231) (20,260) 753,301 710,798
========== ========== =========== ===========
*Including undistributed net investment income of: $ 49,159 $ 67,363 $ 1,106,347 $ 695,233
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------
1997 1996
------------- -------------
<S> <<C> <C>
FROM OPERATIONS:
Net investment income............................................... $ 7,935,910 $ 5,905,585
Net realized gain (loss) on investments (Note 2).................... 0 0
Net increase (decrease) in unrealized appreciation of investments... 0 0
------------ -------------
Net increase in net assets resulting from operations.................... 7,935,910 5,905,585
------------ -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 4)...................................... (7,935,910) (5,905,585)
Net realized gain from investment transactions (Note 4)............. 0 0
------------ -------------
Total dividends and distributions to shareholders.............. (7,935,910) (5,905,585)
------------ -------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of shares................................ 919,623,131 689,151,108
Proceeds from dividends and distributions reinvested................ 7,935,910 5,905,585
Net asset value of shares redeemed.................................. (914,204,963) (660,491,512)
------------ -------------
Net increase (decrease) in net assets resulting from share
transactions.......................................................... 13,354,078 34,565,181
------------ -------------
Net increase (decrease) in net assets................................... 13,354,078 34,565,181
Net assets beginning of year............................................ 144,932,159 110,366,978
------------ -------------
Net assets end of year*................................................. $ 158,286,237 $ 144,932,159
============ =============
SHARES ISSUED AND REDEEMED:
Issued.............................................................. 919,623,131 689,151,108
Issued in reinvestment of dividends and distributions............... 7,935,910 5,905,585
Redeemed............................................................ (914,204,963) (660,491,512)
------------ -------------
Net increase (decrease)........................................ 13,354,078 34,565,181
============ =============
*Including undistributed net investment income of: $ 0 $ 0
</TABLE>
See notes to financial statements.
91
<PAGE> 103
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 December 31, 1997 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 ex-dividend date, income from other
investments is accrued as earned.
Realized gains and losses from investments sold are determined on the basis
of identified cost for accounting and federal income tax purposes.
D. Other:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
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.
92
<PAGE> 104
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 year ended December 31,
1997, the fees incurred by the Fund were $1,265,983. 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 non-affiliated Directors of the Fund for
the year ended December 31, 1997, amounted to $47,998.
4. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Dividends from net investment income (including realized gains and losses
on portfolio securities) of the Money Market Portfolio are declared and
reinvested each business day in additional full and fractional shares of the
portfolio. This policy enables the Money Market Portfolio to maintain a net
asset value of $1.00 per share.
Dividends from net investment income and net realized capital gains of the
other portfolios will normally be declared and reinvested annually in additional
full and fractional shares.
Dividends from net investment income and distributions from net realized
capital gains are determined in accordance with U.S. federal income tax
regulations which may differ from generally accepted accounting principles.
During the year ended December 31, 1997, the Equity Income Portfolio
increased undistributed realized gains by $5,354 and decreased undistributed net
investment income by $5,354. These differences are primarily due to return of
capital distributions 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
93
<PAGE> 105
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL STOCK (CONTINUED)
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 December 31, 1997, the following portfolios of the Fund have capital
loss carryforwards available to offset future capital gains, if any, for federal
income tax purposes:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EXPIRATION DATE
- --------------------------------------------------------------- -------- ------------------
<S> <C> <C>
<CAPTION>
<S> <C> <C>
Intermediate Term Bond......................................... $ 16,850 December 31, 2002
17,218 December 31, 2003
66,206 December 31, 2004
112,050 December 31, 2005
--------
$212,324
========
Government Securities.......................................... $ 2,089 December 31, 2004
========
</TABLE>
7. PURCHASES AND SALES OF INVESTMENTS
The aggregate cost of investments purchased and proceeds from sales or
maturities, other than short-term investments, for the year ended December 31,
1997 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C> <C>
Equity Growth Portfolio................. Common Stock $ 1,085,680 $ 1,174,969
Equity Income Portfolio................. Common Stock 5,730,202 8,293,158
Intermediate Term Bond Portfolio........ U.S Government Obligations 20,554,309 24,417,817
Corporate Bonds 7,919,150 4,033,667
Long Term Bond Portfolio................ U.S Government Obligations 11,700,957 6,775,703
Corporate Bonds 18,061,711 16,449,430
Diversified Portfolio................... Common Stock 1,012,436 1,622,742
Government Securities Portfolio......... U.S Government Obligations 5,817,140 3,296,578
</TABLE>
94
<PAGE> 106
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25
---------- ---------- ---------- ---------- ----------- -----------
Income from investment operations
Net investment income....................... 0.11 0.96 0.39 0.36 0.33 0.29
Net gains (losses) on investments (both
realized and unrealized).................. 8.42 4.30 5.90 0.09 1.59 (0.46)
---------- ---------- ---------- ---------- ----------- -----------
Total from investment operations............ 8.53 5.26 6.29 0.45 1.92 (0.17)
---------- ---------- ---------- ---------- ----------- -----------
Less distributions
Dividends (from net investment income)...... (0.96) 0.00 (0.39) (0.36) (0.33) (0.29)
Distributions (from realized capital
gains).................................... (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 (0.03)
Distributions (in excess of realized capital
gain)..................................... 0.00 0.00 (0.04) 0.00 0.00 (0.04)
---------- ---------- ---------- ---------- ----------- -----------
Total distributions......................... (2.82) 0.00 (1.77) (0.56) (0.90) (0.40)
---------- ---------- ---------- ---------- ----------- -----------
Net asset value, end of year.................. $ 36.08 $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68
========== ========== ========== ========== =========== ===========
Total return................................ 30.68% 20.95% 30.54% 2.15% 9.71% (0.84%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year....................... $2,799,106 $2,154,669 $1,873,569 $1,556,536 $58,963,456 $39,979,012
Average commission rate....................... $ 0.0418 $ 0.0330 N/A N/A N/A N/A
Ratio of net investment income to average net
assets...................................... 0.34% 0.62% 1.54% 2.11% 1.79% 1.72%
Ratio of expenses to average net assets....... 1.33% 1.22% 1.28% 0.53% 0.50% 0.53%
Portfolio turnover rate....................... 45.90% 44.17% 38.17% 55.09% 59.15% 39.93%
<CAPTION>
1991 1990 1989 1988
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year............ $ 15.38 $ 15.90 $ 12.78 $ 11.81
----------- ---------- ---------- ----------
Income from investment operations
Net investment income....................... 0.25 0.27 0.28 0.22
Net gains (losses) on investments (both
realized and unrealized).................. 5.08 (0.50) 3.66 1.20
----------- ---------- ---------- ----------
Total from investment operations............ 5.33 (0.23) 3.94 1.42
----------- ---------- ---------- ----------
Less distributions
Dividends (from net investment income)...... (0.25) (0.29) (0.27) (0.21)
Distributions (from realized capital
gains).................................... (0.17) 0.00 (0.55) (0.24)
Distributions (from additional paid-in
capital).................................. (0.04) 0.00 0.00 0.00
Distributions (in excess of realized capital
gain)..................................... 0.00 0.00 0.00 0.00
----------- ---------- ---------- ----------
Total distributions......................... (0.46) (0.29) (0.82) (0.45)
----------- ---------- ---------- ----------
Net asset value, end of year.................. $ 20.25 $ 15.38 $ 15.90 $ 12.78
=========== ========== ========== ==========
Total return................................ 34.66% (1.45%) 30.83% 12.02%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year....................... $26,219,999 $7,163,679 $5,672,894 $3,957,234
Average commission rate....................... N/A N/A N/A N/A
Ratio of net investment income to average net
assets...................................... 2.09% 2.42% 2.00% 1.70%
Ratio of expenses to average net assets....... 0.59% 0.77% 0.96% 1.04%
Portfolio turnover rate....................... 32.33% 31.21% 29.91% 9.51%
</TABLE>
95
<PAGE> 107
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56 $ 14.64
---------- ---------- ---------- ---------- ----------- -----------
Income from investment operations
Net investment income............... 0.61 0.98 0.69 0.64 0.52 0.59
Net gains (losses) on investments
(both realized and unrealized).... 5.96 2.89 4.45 (0.51) 1.68 0.92
---------- ---------- ---------- ---------- ----------- -----------
Total from investment
operations...................... 6.57 3.87 5.14 0.13 2.20 1.51
Less distributions
Dividends (from net investment
income)........................... (1.00) (0.04) (0.65) (0.64) (0.52) (0.59)
Distributions (from realized capital
gains)............................ (1.91) 0.00 (0.41) (0.39) (0.81) 0.00*
---------- ---------- ---------- ---------- ----------- -----------
Total distributions............... (2.91) (0.04) (1.06) (1.03) (1.33) (0.59)
Net asset value, end of year.......... $ 27.10 $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56
========== ========== ========== ========== =========== ===========
Total return...................... 31.26% 19.76% 33.12% 0.78% 14.14% 10.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year............... $20,720,886 $18,572,347 $18,091,035 $16,204,925 $151,330,311 $121,540,392
Average commission rate............... $ 0.0491 $ 0.0593 N/A N/A N/A N/A
Ratio of net investment income to
average net assets.................. 2.20% 2.79% 3.54% 3.53% 3.22% 3.68%
Ratio of expenses to average net
assets.............................. 0.59% 0.55% 0.56% 0.48% 0.46% 0.46%
Portfolio turnover rate............... 29.32% 29.37% 26.80% 32.48% 28.48% 35.62%
<CAPTION>
1991 1990 1989 1988
------------ ----------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 12.70 $ 14.26 $ 12.67 $ 12.03
----------- ---------- ---------- ----------
Income from investment operations
Net investment income............... 0.64 0.54 0.64 0.70
Net gains (losses) on investments
(both realized and unrealized).... 1.94 (1.50) 2.20 1.64
----------- ---------- ---------- ----------
Total from investment
operations...................... 2.58 (0.96) 2.84 2.34
Less distributions
Dividends (from net investment
income)........................... (0.64) (0.60) (0.64) (0.66)
Distributions (from realized capital
gains)............................ 0.00* 0.00 (0.61) (1.04)
----------- ---------- ---------- ----------
Total distributions............... (0.64) (0.60) (1.25) (1.70)
Net asset value, end of year.......... $ 14.64 $ 12.70 $ 14.26 $ 12.67
=========== ========== ========== ==========
Total return...................... 20.31% (6.73%) 22.42% 19.45%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year............... $118,114,947 $99,878,151 $6,185,876 $5,054,514
Average commission rate............... N/A N/A N/A N/A
Ratio of net investment income to
average net assets.................. 4.46% 5.39% 4.66% 5.24%
Ratio of expenses to average net
assets.............................. 0.49% 0.52% 0.88% 0.91%
Portfolio turnover rate............... 25.84% 8.89% 19.55% 22.70%
</TABLE>
- ---------------
* Less than $.01 per share.
96
<PAGE> 108
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.63 0.62 0.63 0.60 0.47 0.59
Net gains (losses) on investments
(both realized and unrealized)..... 0.16 (0.23) 0.82 (0.76) 0.34 0.11
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... 0.79 0.39 1.45 (0.16) 0.81 0.70
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.63) 0.00 (0.63) (0.60) (0.47) (0.59)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 0.00 (0.16) 0.00*
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................ (0.63) 0.00 (0.63) (0.60) (0.63) (0.59)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of year........... $ 11.12 $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33
========== ========== ========== ========== ========== ==========
Total return....................... 7.70% 3.69% 14.82% (1.52%) 7.84% 6.85%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $44,216,994 $40,045,253 $37,519,833 $32,283,693 $31,326,168 $20,911,161
Ratio of net investment income to
average net assets................... 5.98% 5.88% 6.10% 5.66% 5.26% 6.24%
Ratio of expenses to average net
assets............................... 0.51% 0.48% 0.49% 0.52% 0.52% 0.53%
Portfolio turnover rate................ 79.25% 33.59% 32.07% 25.41% 50.61% 62.27%
<CAPTION>
1991 1990 1989 1988
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 9.69 $ 9.85 $ 9.63 $ 9.93
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.77 0.84 0.90 0.86
Net gains (losses) on investments
(both realized and unrealized)..... 0.71 (0.16) 0.22 (0.29)
----------- ----------- ----------- -----------
Total from investment operations... 1.48 0.68 1.12 0.57
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.77) (0.84) (0.90) (0.87)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 0.00
Distributions (from additional
paid-in capital)................... (0.18) 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................ (0.95) (0.84) (0.90) (0.87)
----------- ----------- ----------- -----------
Net asset value, end of year........... $ 10.22 $ 9.69 $ 9.85 $ 9.63
========== ========== ========== ==========
Total return....................... 15.27% 6.90% 11.63% 5.74%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $22,005,519 $20,260,361 $20,419,237 $23,192,883
Ratio of net investment income to
average net assets................... 7.88% 8.52% 8.67% 8.43%
Ratio of expenses to average net
assets............................... 0.51% 0.54% 0.60% 0.55%
Portfolio turnover rate................ 55.03% 20.06% 30.99% 24.77%
</TABLE>
- ---------------
* Less than $.01 per share.
97
<PAGE> 109
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.76 0.79 0.74 0.84 0.50 0.81
Net gains (losses) on investments
(both realized and unrealized)..... 0.83 (0.83) 2.41 (1.58) 1.09 0.16
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... 1.59 (0.04) 3.15 (0.74) 1.59 0.97
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.79) 0.00 (0.74) (0.84) (0.50) (0.74)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 0.00 (0.23) 0.00*
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 0.00 (0.07)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................ (0.79) 0.00 (0.74) (0.84) (0.73) (0.81)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of year........... $ 13.64 $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19
=========== =========== =========== =========== =========== ===========
Total return....................... 13.44% (.31%) 30.04% (6.14%) 14.21% 8.79%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $75,352,764 $62,098,817 $62,017,889 $44,012,329 $63,044,619 $29,564,159
Ratio of net investment income to
average net assets................... 6.33% 6.40% 6.58% 6.45% 5.69% 7.71%
Ratio of expenses to average net
assets............................... 0.49% 0.46% 0.48% 0.49% 0.48% 0.51%
Portfolio turnover rate................ 37.08% 59.78% 79.45% 110.19% 45.93% 0.17%
<CAPTION>
1991 1990 1989 1988
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 10.47 $ 10.70 $ 9.97 $ 10.28
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.72 0.90 0.96 0.96
Net gains (losses) on investments
(both realized and unrealized)..... 1.12 (0.23) 0.73 (0.10)
----------- ----------- ----------- -----------
Total from investment operations... 1.84 0.67 1.69 0.86
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.72) (0.90) (0.96) (1.17)
Distributions (from realized capital
gains)............................. (0.37) 0.00 0.00 0.00
Distributions (from additional
paid-in capital)................... (0.19) 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................ (1.28) (0.90) (0.96) (1.17)
----------- ----------- ----------- -----------
Net asset value, end of year........... $ 11.03 $ 10.47 $ 10.70 $ 9.97
=========== =========== =========== ===========
Total return....................... 17.57% 6.26% 16.95% 8.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year................ $23,207,734 $20,532,817 $20,770,552 $23,840,760
Ratio of net investment income to
average net assets................... 8.12% 8.72% 8.54% 9.04%
Ratio of expenses to average net
assets............................... 0.51% 0.53% 0.64% 0.54%
Portfolio turnover rate................ 63.68% 27.49% 36.00% 42.79%
</TABLE>
- ---------------
* Less than $.01 per share.
98
<PAGE> 110
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year......... $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13
---------- ---------- ---------- ---------- ----------- -----------
Income from investment operations
Net investment income.................... 0.34 0.36 0.43 0.38 0.37 0.42
Net gains (losses) on investments (both
realized and unrealized)............... 3.80 1.91 3.03 (0.24) 1.01 (0.29)
---------- ---------- ---------- ---------- ----------- -----------
Total from investment operations....... 4.14 2.27 3.46 0.14 1.38 0.13
---------- ---------- ---------- ---------- ----------- -----------
Less distributions
Dividends (from net investment income)... (0.39) 0.00 (0.43) (0.38) (0.37) (0.42)
Distributions (from realized capital
gains)................................. (1.13) 0.00 (0.43) (0.09) (0.18) (0.20)
Distributions (in excess of realized
capital gain).......................... 0.00 0.00 (0.02) 0.00 0.00* 0.00*
---------- ---------- ---------- ---------- ----------- -----------
Total distributions.................... (1.52) 0.00 (0.88) (0.47) (0.55) (0.62)
---------- ---------- ---------- ---------- ----------- -----------
Net asset value, end of year............... $ 20.61 $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64
========= ========= ========= ========= ========== ==========
Total return........................... 24.97% 14.44% 26.32% 1.03% 10.92% 0.99%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year.................... $3,229,389 $3,380,587 $3,272,075 $2,860,700 $34,076,498 $22,704,133
Average commission rate.................... $ 0.0583 $ 0.0412 N/A N/A N/A N/A
Ratio of net investment income to average
net assets............................... 1.43% 2.02% 2.68% 3.19% 3.13% 3.68%
Ratio of expenses to average net assets.... 1.10% 0.91% 0.95% 0.57% 0.53% 0.57%
Portfolio turnover rate.................... 32.58% 24.43% 27.69% 51.38% 28.98% 26.44%
<CAPTION>
1991 1990 1989 1988
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year......... $ 11.75 $ 12.27 $ 11.26 $ 11.00
----------- ----------- ----------- -----------
Income from investment operations
Net investment income.................... 0.53 0.70 0.75 0.71
Net gains (losses) on investments (both
realized and unrealized)............... 1.86 (0.40) 1.74 0.36
----------- ----------- ----------- -----------
Total from investment operations....... 2.39 0.30 2.49 1.07
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment income)... (0.53) (0.71) (0.75) (0.70)
Distributions (from realized capital
gains)................................. (0.48) (0.11) (0.73) (0.11)
Distributions (in excess of realized
capital gain).......................... 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions.................... (1.01) (0.82) (1.48) (0.81)
----------- ----------- ----------- -----------
Net asset value, end of year............... $ 13.13 $ 11.75 $ 12.27 $ 11.26
========== ========== ========== ==========
Total return........................... 20.34% 2.44% 22.11% 9.73%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year.................... $16,829,653 $10,373,263 $12,319,454 $16,050,117
Average commission rate.................... N/A N/A N/A N/A
Ratio of net investment income to average
net assets............................... 4.72% 6.04% 5.86% 6.10%
Ratio of expenses to average net assets.... 0.60% 0.63% 0.67% 0.62%
Portfolio turnover rate.................... 22.03% 11.49% 8.06% 4.46%
</TABLE>
- ---------------
* Less than $.01 per share.
99
<PAGE> 111
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1997 1996 1995 1994
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period............................. $ 10.58 $ 10.21 $ 9.51 $ 9.72
----------- ----------- ---------- ----------
Income from investment operations
Net investment income.......................................... 0.45 0.45 0.34 0.05
Net gains (losses) on investments (both realized and
unrealized).................................................. 0.28 (0.08) 0.70 (0.21)
----------- ----------- ---------- ----------
Total from investment operations......................... 0.73 0.37 1.04 (0.16)
----------- ----------- ---------- ----------
Less distributions
Dividends (from net investment income)......................... (0.42) 0.00 (0.34) (0.05)
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...................................... (0.42) 0.00 (0.34) (0.05)
----------- ----------- ---------- ----------
Net asset value, end of period................................... $ 10.89 $ 10.58 $ 10.21 $ 9.51
========== ========== ========= =========
Total return............................................. 7.18% 3.62% 10.89% (2.68%)+++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........................................ $25,065,893 $16,383,300 $8,555,893 $1,204,231
Ratio of net investment income to average net assets............. 5.52% 5.59% 6.10% 5.43%+++
Ratio of expenses to average net assets.......................... 0.56% 0.55% 0.74% 0.57%+++
Portfolio turnover rate.......................................... 19.14% 12.52% 0.28% 7.82%
<CAPTION>
FOR THE
PERIOD MAY 1,
1991**
THROUGH
DECEMBER 31,
1993 1992 1991
----------- ----------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period............................. $ 9.66 $ 10.70 $ 10.00
----------- ----------- -------------
Income from investment operations
Net investment income.......................................... 0.52 1.00 0.27
Net gains (losses) on investments (both realized and
unrealized).................................................. 0.27 (0.25) 0.70
----------- ----------- -------------
Total from investment operations......................... 0.79 0.75 0.97
----------- ----------- -------------
Less distributions
Dividends (from net investment income)......................... (0.52) (1.00) (0.27)
Distributions (from realized capital gains).................... (0.21) (0.79) 0.00
Distributions (in excess of realized capital gains)............ 0.00* 0.00 0.00
----------- ----------- -------------
Total distributions...................................... (0.73) (1.79) (0.27)
----------- ----------- -------------
Net asset value, end of period................................... $ 9.72 $ 9.66 $ 10.70
========== ========== =============
Total return............................................. 8.18% 7.01% 9.70%++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........................................ $20,036,097 $19,096,791 $42,235,195
Ratio of net investment income to average net assets............. 5.06% 6.25% 5.75%+
Ratio of expenses to average net assets.......................... 0.53% 0.50% .43%+
Portfolio turnover rate.......................................... 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.
100
<PAGE> 112
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
------------ ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
Income from investment
operations
Net investment income.... 0.03 0.05 0.05 0.04 0.03 0.03
Less distributions
Dividends (from net
investment income)..... (0.03) (0.05) (0.05) (0.04) (0.03) (0.03)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of
year..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ========== ========== ==========
Total return........... 5.15% 5.00% 5.50% 3.82% 2.75% 3.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year.... $158,286,237 $144,932,159 $110,366,978 $83,352,731 $65,474,860 $50,892,593
Ratio of net investment
income to average net
assets................... 5.11% 4.95% 5.30% 3.77% 2.62% 3.17%
Ratio of expenses to
average net assets....... 0.46% 0.45% 0.46% 0.49% 0.46% 0.48%
<CAPTION>
1991 1990 1989 1988
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------
Income from investment
operations
Net investment income.... 0.06 0.07 0.08 0.07
Less distributions
Dividends (from net
investment income)..... (0.06) (0.07) (0.08) (0.07)
----------- ----------- ----------- ----------
Net asset value, end of
year..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== =========
Total return........... 5.60% 7.22% 8.20% 6.56%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year.... $34,642,974 $26,924,389 $10,817,623 $4,552,241
Ratio of net investment
income to average net
assets................... 5.80% 7.63% 8.06% 6.77%
Ratio of expenses to
average net assets....... 0.54% 0.54% 0.92% 1.08%
</TABLE>
101
<PAGE> 113
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
MONY Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities of
MONY Series Fund, Inc. (comprising the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified, Government Securities and
Money Market Portfolios), including the portfolios of investments, as of
December 31, 1997, the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the ten years in the period
then ended for all the Portfolios except Government Securities Portfolio for
which the period is for each of the six years in the period ended December 31,
1997 and for the period from May 1, 1991 (commencement of operations) to
December 31, 1991. These financial statements are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting the MONY Series Fund, Inc. as of
December 31, 1997, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the periods referred to above, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
102
<PAGE> 114
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
<TABLE>
<S> <C>
DIRECTORS AND PRINCIPAL OFFICERS
Kenneth M. Levine Chairman, President and Director
Joel Davis Director
Michael J. Drabb Director
Alan J. Hartnick Director
Floyd L. Smith Director
Edward E. Hill Vice President-Compliance
David V. Weigel Treasurer
John P. Keller Controller
Frederick C. Tedeschi Secretary
INVESTMENT ADVISER
MONY Life Insurance Co. of America
1740 Broadway
New York, New York 10019
PRINCIPAL UNDERWRITER AND DISTRIBUTOR
MONY Securities Corp.
1740 Broadway
New York, New York 10019
CUSTODIAN
Chase Manhattan Bank
4 New York Plaza
New York, New York 10004
TRANSFER AGENT
The Mutual Life Insurance Co. of New York
1740 Broadway
New York, New York 10019
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
1301 Avenue of the Americas
New York, New York 10019
</TABLE>
103
<PAGE> 115
(This page intentionally left blank.)
104
<PAGE> 116
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.
As the stock market rose in 1997, OpCap Advisors maintained an
above-average cash position because it became somewhat difficult to find
superior companies that were underpriced. As of December 31, 1997, the
portfolio's net assets were allocated 82 percent to common stocks and 18 percent
to cash and cash equivalents. This cash position provides a resource to purchase
quality stocks opportunistically when they become available at favorable prices.
The portfolio's large cash position may serve shareholders well if the Asian
financial crisis continues to buffet the stock market.
The portfolio achieved satisfactory results in 1997. OpCap achieved these
results by being disciplined in its philosophy of investing in superior
companies that have strong competitive positions, generate high cash flow and
effectively deploy that cash to benefit shareholders.
Recently, OpCap established a new position in the common stock of Diageo
PLC, a premier global consumer products company. Diageo was formed through the
recent merger of two consumer products giants -- Grand Metropolitan and
Guinness. The portfolio already owned Grand Metropolitan stock and received
Diageo shares in the merger. OpCap then bought additional Diageo shares. The
company's well-known brands include Burger King, Pillsbury, Guinness and Dom
Perignon, among many others. OpCap liquidated portfolio positions in Warner
Lambert and Progressive Group.
At the end of December, the portfolio's five largest equity positions were
ACE Ltd., EXEL Ltd., Lockheed Martin Corp., Caterpillar, Inc., and Wells Fargo &
Co. Major industry positions were in insurance, banking, machinery,
miscellaneous financial services and transportation.
A tight U.S. job market and the Asian crisis may approximately offset each
other in their impact on the U.S. economy. OpCap does not anticipate inflation
will pick up markedly, or that the U.S. will slide into a recession. Whether the
stock market indexes may rise or fall in 1998 is a matter of conjecture. There
might be a high level of market volatility until these issues sort themselves
out, but volatility creates opportunities to buy stocks at favorable prices.
OpCap continues to invest for the long term in superior businesses that are
reasonably valued, especially those which generate a high level of cash
throughout the economic cycle. By being disciplined in this value approach,
OpCap seeks to control risk and match or exceed its benchmarks regardless of
economic or market trends.
105
<PAGE> 117
CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST EQUITY PORTFOLIO FROM
INCEPTION (8/1/88) THROUGH 12/31/97
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) EQUITY PORTFOLIO* S&P 500** LIPPER GROWTH***
<S> <C> <C> <C>
8/1/88 10000 10000 10000
12/31/88 10190 10367 12109
12/31/89 12500 13652 15435
12/31/90 12223 13228 14600
12/31/91 16038 17258 19905
12/31/92 18909 18573 21423
12/31/93 20393 20445 23990
12/31/94 21182 20715 23613
12/31/95 29325 28500 31323
12/31/96 36721 35044 36798
12/31/97 46179 46734 47131
</TABLE>
* Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does
not predict future performance. Shares may be worth more or
less at redemption than at original purchase.
** The S&P 500 Index is an unmanaged index which includes 500
companies which tend to be leaders in important industries
within the U.S. economy and excludes any transaction or
holding charges.
*** Lipper Analytical Services is an independent reporting
service that measures the performance of most mutual funds.
The performance results reflect an unmanaged index and are
net of all expenses other than sales charges and redemption
fees.
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.
106
<PAGE> 118
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 82.15% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.55%
Omnicom Group Inc. 190,000 $ 8,051,250
AEROSPACE -- 4.77%
AlliedSignal Inc. 91,840 3,576,020
Boeing Company 38,657 1,891,777
Lockheed Martin Corporation 195,000 19,207,500
-----------
24,675,297
AUTOMOTIVE -- 2.07%
LucasVarity PLC (ADR) 307,000 10,706,625
BANKING -- 7.44%
BankBoston Corporation 107,000 10,051,313
Citicorp 95,544 12,080,344
Wells Fargo & Company 48,362 16,415,876
-----------
38,547,533
CAPITAL GOODS & SERVICES -- 3.46%
General Electric Company 91,088 6,683,582
Textron Inc. 180,000 11,250,000
-----------
17,933,582
CHEMICALS -- 3.43%
Du Pont (E. I.) de Nemours &
Company 120,000 7,207,500
Hercules Inc. 102,202 5,116,488
Monsanto Company 130,000 5,460,000
-----------
17,783,988
COMPUTER HARDWARE -- 0.61%
Adaptec Inc. (a) 85,000 3,155,625
CONSUMER NON-DURABLES -- 2.35%
Avon Products Inc. 122,756 7,534,149
Mattel Inc. 124,875 4,651,594
-----------
12,185,743
DRUGS & MEDICAL PRODUCTS -- 1.80%
Becton, Dickinson & Company 186,158 9,307,900
ELECTRICAL EQUIPMENT -- 1.94%
Avnet Inc. 152,000 10,032,000
ELECTRONICS -- 0.88%
Arrow Electronics Inc. (a) 140,924 4,571,222
ENERGY -- 0.43%
Triton Energy Ltd. (a) 76,004 2,218,367
FOOD & BEVERAGES & TOBACCO -- 2.20%
Diageo PLC 181,000 6,855,375
Sysco Corporation 100,000 4,556,250
-----------
11,411,625
HEALTH CARE -- 2.95%
Tenet Healthcare Corporation (a) 460,700 15,260,688
HOTELS & RESTAURANTS -- 2.64%
McDonald's Corporation 286,000 13,656,500
INSURANCE -- 20.63%
ACE Ltd. 276,000 26,634,000
AFLAC Inc. 185,128 9,464,669
American International Group
Inc. 38,418 4,177,958
Everest Reinsurance Holdings 175,000 7,218,750
EXEL Ltd. 391,348 24,801,679
General Re Corporation 75,000 15,900,000
Mid Ocean Ltd. 160,000 8,680,000
Renaissance Holdings Ltd. 225,000 9,928,125
-----------
106,805,181
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
MACHINERY -- 6.51%
Caterpillar Inc. 386,000 $ 18,745,125
Dover Corporation 280,000 10,115,000
Tenneco Inc. 123,000 4,858,500
-----------
33,718,625
MISC. FINANCIAL SERVICES -- 5.69%
Countrywide Credit Industries
Inc. 316,088 13,552,273
Federal Home Loan Mortgage
Corporation 379,180 15,901,861
-----------
29,454,134
PUBLISHING -- 1.08%
Donnelley R R & Sons Company 150,000 5,587,500
RETAIL -- 2.74%
May Department Stores Company 269,712 14,210,451
TELECOMMUNICATIONS -- 1.60%
Sprint Corporation 141,000 8,266,125
TRANSPORTATION -- 5.38%
AMR Corporation (a) 69,000 8,866,500
Canadian Pacific Ltd. 270,000 7,357,500
Carnival Corporation 210,000 11,628,750
-----------
27,852,750
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $287,874,088) 425,392,711
COMMERCIAL PAPER -- 15.42%
Ford Motor Credit Company 5.80%
due 01/07/98 20,000,000 19,980,666
General Motors Acceptance
Corporation
5.82% due 01/14/98 20,000,000 19,957,967
American Express Credit
Corporation
5.63% due 01/13/98 20,000,000 19,962,467
IBM Credit Corporation
5.74% due 01/21/98 20,000,000 19,936,222
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $79,837,322) 79,837,322
REPURCHASE AGREEMENT -- 2.76%
State Street Bank & Trust Repurchase
Agreement, 5.00% due 01/02/98
Collateral: U.S. Treasury Note
$14,555,000, 5.62% due
11/30/99 Value $14,591,388 14,305,000 14,305,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $14,305,000) 14,305,000
TOTAL INVESTMENTS
(IDENTIFIED COST $382,016,410) $ 519,535,033
OTHER ASSETS LESS LIABILITIES -- (0.33)% (1,731,714)
-----------
NET ASSETS 100% $ 517,803,319
</TABLE>
(a) Non-income producing security
See accompanying notes to financial statements.
107
<PAGE> 119
SMALL CAP PORTFOLIO
GAMCO INVESTORS, INC.
RYE, NEW YORK
The objective of Enterprise Accumulation Trust Small Cap Portfolio is to
seek capital appreciation through investments in a diversified portfolio
consisting primarily of equity securities of companies with market
capitalizations of under $1 billion.
The strong portfolio performance in 1997 was the result of GAMCO's sector
bets on cable television and cable television networks, its positioning in niche
industrial companies, its focus on corporate restructurings and some good
old-fashioned stock picking.
Cable television stocks, particularly Cablevision Systems (up 210 percent
in 1997) went from the doghouse to the penthouse for two reasons: Cash flows
exceeded analysts' consensus expectations and cable developed a technology
mantra, with Microsoft's Bill Gates committing $1 billion to the proposition
that coaxial cable would be the highway of choice for internet transmission to
American homes. The cable industry is in great shape except for the political
jawboning over cable rates that is likely to take place in an election year like
1998.
The portfolio's positioning in niche industrial companies also contributed
to returns. These companies reflect the new competitive strengths of American
industry, the prospect of improving earnings and the likelihood that smaller
niche players would be targeted by larger competitors. In 1997, stocks like
Goulds Pumps and Brad Ragan were strong performers on takeovers.
Corporate restructurings helped boost portfolio performance in 1997. The
splitting of CTEC Corporation into Commonwealth Telephone, RCN and Cable
Michigan and Culbro (up 71 percent) into General Cigar and Griffin Land
Resources were good examples of this activity.
The marketplace is in the early stages of the third great wave of mergers
and acquisitions, triggered by General Electric's hostile bid to acquire Kemper
in March 1994. The first wave was in the 1960s, with conglomerates buying
companies to build diversified empires. The second wave in the 1980s was led by
the financial engineers -- leveraged buyout specialists preying on undervalued
companies. The current wave is being propelled by strategic corporate buyers
looking to extend product lines and distribution systems through the acquisition
of companies in related businesses and consolidators, savvy individuals creating
operational and financial leverage by consolidating fragmented industries. GAMCO
believes this wave may be the strongest of all.
For the last five years American companies have been able to boost earnings
through technology-oriented productivity gains and extensive cost cutting.
Progress may continue on these fronts but much of the work has already been
done. Limited pricing flexibility in an increasingly global economy may restrain
profit margins. Many companies may become increasingly dependent on growth
through the acquisition of complementary businesses.
The portfolio has benefited from several deals throughout the year. In
addition to those mentioned above, the portfolio reaped profits on General Host,
Black Entertainment Television, International Family Entertainment and
Fieldcrest Cannon.
Looking ahead to 1998, although sensitive to the impact of labor and
commodities, inflation likely may remain in check. Barring any synchronized
worldwide economic upswing, a relative low probability considering Asian
economic weakness, interest rates may be stable. In general, corporate earnings
growth may be respectable, in the 7-9 percent range. With expectations high,
however, there may be more earnings disappointments in the year ahead. Merger,
acquisition and restructuring activity may remain strong. If this scenario
unfolds, we may see the market in-line with corporate earnings.
GAMCO is concerned about several potential problems: The ripple effect on
U.S. profits from the currency debacle in Southeast Asia and a potential run on
Latin American currencies and economies; an upswing in wage inflation; upward
pressure on interest rates; and the potential for a 1999 lame-duck Clinton
administration. Last, but certainly not least, the level of the market is a
concern. Valuations are high by most measures and the overall equity market does
not appear to have a margin of safety.
GAMCO believes deals may have a favorable impact on many of the portfolio's
holdings. With the lower longer term capital gain rate of 20 percent, we believe
the owner/managers of many companies in the portfolio may be tempted to monetize
their investments. This may be an important source of profits for the portfolio.
108
<PAGE> 120
CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST SMALL CAP PORTFOLIO
FROM INCEPTION (8/1/88) THROUGH 12/31/97
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) SMALL CAP PORTFOLIO* RUSSELL 1000 VALUE** LIPPER GROWTH***
<S> <C> <C> <C>
8/1/88 10000 10000 10000
12/31/88 10190 10351 10022
12/31/89 12060 12960 12132
12/31/90 10883 11912 10462
12/31/91 16120 14845 15539
12/31/92 19584 16895 17277
12/31/93 23405 19955 20201
12/31/94 23409 19556 20104
12/31/95 26284 27060 26460
12/31/96 29231 32915 30260
12/31/97 42186 44495 34814
</TABLE>
* Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future performance. Shares may be worth more or less
at redemption than at original price.
** The Russell 1000 Value Index is an unmanaged index which
excludes any transaction or holding charges. The Russell
1000 Value Index replaces the Russell 2000 Index as the
broad-based comparison to the Small Cap Portfolio as it more
appropriately reflects the securities market in which the
portfolio invests. During 1997, an investment in the above
hypothetical shareholder account increased $12,955 compared
to $6,282 and $11,580 in the Russell 1000 Value Index and
Russell 2000 Index, respectively.
*** Lipper Analytical Services is an independent reporting
service that measures the performance of most mutual funds.
The performance results reflect an unmanaged index and are
net of all expenses other than sales charges and redemption
fees.
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> 121
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 92.70% PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 0.93%
Ackerley Inc. 200,000 $ 3,387,500
AEROSPACE -- 8.24%
Aeroquip Vickers Inc. 23,000 1,128,437
Ametek Aerospace Products Inc. 88,000 2,376,000
Coltec Industries Inc. (a) 190,000 4,405,625
Curtiss Wright Corporation 90,000 3,268,125
Gencorp Inc. 220,000 5,500,000
Moog Inc. (a) 25,000 873,438
Sequa Corporation (Class A) 70,000 4,554,375
Sequa Corporation (Class B) 28,000 2,072,000
SPS Technologies Inc. 136,000 5,933,000
-------------------
30,111,000
APPAREL & TEXTILES -- 0.38%
Carlyle Inds Inc. 159,759 239,639
Hartmarx Corporation 150,000 1,143,750
-------------------
1,383,389
AUTOMOTIVE -- 9.26%
Clarcor Inc. 145,000 4,295,625
Echlin Inc. 120,000 4,342,500
Federal Mogul Corporation 50,000 2,025,000
Modine Manufacturing Company 225,000 7,678,125
Navistar International
Corporation Inc. (a) 90,000 2,233,125
Scheib Earl Inc. 225,000 1,800,000
Standard Motor Products Inc. 180,000 4,061,250
Superior Inds International Inc. 10,000 268,125
Transpro Inc. 10,000 90,000
Wynns International Inc. 220,000 7,012,500
-------------------
33,806,250
BROADCASTING -- 9.81%
BET Holdings Inc. (a) 144,000 7,866,000
Chris Craft Industries Inc. 150,000 7,846,875
Echostar Communications
Corporation 20,000 335,000
Gray Communications Systems Inc. 34,500 905,625
Gray Communications Systems Inc.
(Class B) 100,000 2,575,000
GST Telecommunications Inc. 190,000 2,256,250
Lin Television Corporation (a) 100,000 5,450,000
Paxson Communications
Corporation 200,000 1,475,000
United International Holdings
Inc. (a) 70,000 805,000
United Television Inc. 61,000 6,336,375
-------------------
35,851,125
CABLE -- 5.72%
AFC Cable Systems Inc. (a) 17,000 505,750
Cable Michigan Inc. 17,500 400,312
Cablevision Systems Corporation
(a) 186,000 17,809,500
Century Communications
Corporation 126,000 1,228,500
Mercom Inc. 56,800 539,600
Rogers Communications Inc. 25,000 121,875
United Video Satellite Group 10,000 287,500
-------------------
20,893,037
CAPITAL GOODS & SERVICES -- 0.05%
AAR Corporation 5,000 193,750
CHEMICALS -- 1.18%
Church & Dwight Inc. 100,000 2,806,250
Lawter International Inc. 140,000 1,522,500
-------------------
4,328,750
COMPUTER SOFTWARE -- 0.13%
Software Artistry Inc. 20,000 486,250
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
CONSUMER DURABLES -- 0.80%
Envirosource Inc. (a) 450,000 $ 1,350,000
Noel Group 111,500 383,281
Oneida Ltd. 45,000 1,200,938
-------------------
2,934,219
CONSUMER SERVICES -- 0.69%
Berlitz International Inc. (a) 45,000 1,170,000
ITT Educational Services Inc. 28,000 624,750
Mikasa Inc. 50,000 728,125
-------------------
2,522,875
ELECTRICAL EQUIPMENT -- 1.62%
Corecom Inc. 85,000 860,625
Oak Technology 15,000 97,500
Portec Inc. 55,000 797,500
Thomas Industries Inc. 210,000 4,147,500
-------------------
5,903,125
ELECTRONICS -- 0.56%
CTS Corporation 64,000 2,044,000
ENERGY -- 1.46%
Kaneb Services Inc. (a) 180,000 933,750
USX Delhi Group 214,000 4,387,000
-------------------
5,320,750
ENTERTAINMENT & LEISURE -- 8.32%
Ascent Entertainment Group Inc. 150,000 1,556,250
Bull Run Corporation 70,000 269,063
Churchill Downs Inc. 17,000 745,875
Florida Panthers Holdings Inc. 50,000 862,500
Gaylord Entertainment Company
New 210,001 6,706,907
GC Companies Inc. 80,000 3,790,000
HSN Inc. 210,000 10,815,000
Jackpot Enterprises Inc. 235,000 2,658,437
Spectravision Inc. (Class B)
(a)(b) 274,617 0
Ticketmaster Group Inc. 130,000 2,990,000
-------------------
30,394,032
FINANCE -- 1.08%
Pioneer Group Inc. 140,000 3,937,500
FOOD & BEVERAGES & TOBACCO -- 3.50%
Celestial Seasonings Inc. (a) 111,000 3,496,500
Chock Full O Nuts Corporation 162,000 1,134,000
Eskimo Pie Corporation 82,000 943,000
General Cigar Holdings Inc.
(Class A) (a) 10,000 213,125
General Cigar Holdings Inc.
(Class B) (a) 190,000 4,049,375
Tootsie Roll Industries Inc. 47,320 2,957,500
-------------------
12,793,500
HOTELS & RESTAURANTS -- 1.42%
Aztar Corporation (a) 455,000 2,843,750
Trump Hotels & Casino Resorts
Inc. 350,000 2,340,625
-------------------
5,184,375
INSURANCE -- 1.14%
Danielson Holding Corporation 25,000 181,250
Liberty Corporation 85,000 3,973,750
-------------------
4,155,000
MACHINERY -- 4.57%
Ampco Pittsburgh Corporation 110,000 2,151,875
Baldwin Technology Company Inc.
(a) 120,000 600,000
Banner Aerospace Inc. 44,500 492,281
Commercial Intertech Corporation 5,000 103,750
Culligan Water Technologies Inc. 9,000 452,250
Daniel Industries Inc. 30,000 577,500
</TABLE>
110
<PAGE> 122
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
Fairchild Corporation 65,000 $ 1,616,875
Franklin Electric Inc. 20,000 1,285,000
Hach Company 20,000 252,500
Hach Company (Class A) 20,000 187,500
Idex Corporation 32,000 1,116,000
Katy Industries Inc. 160,000 3,260,000
Kollmorgen Corporation 124,000 2,270,750
Nortek Inc. 73,000 1,939,063
Standex International
Corporation 11,000 387,750
-------------------
16,693,094
MANUFACTURING -- 3.46%
Cerion Technologies Inc. (a) 5,000 9,844
Crane Company 70,000 3,036,250
Fedders Corporation 350,000 2,143,750
Industrial Distribution Group
Inc. 12,000 188,250
Oil Dri Corporation of America 120,000 1,980,000
Ralcorp Holdings Inc. New 15,000 254,062
Strattec Security Corporation 19,500 497,250
Trimas Corporation 100,000 3,437,500
Tyler Corporation (a) 200,000 1,100,000
-------------------
12,646,906
METALS & MINING -- 1.81%
Calmat Company 55,000 1,533,125
Handy & Harman 115,000 3,967,500
Park Ohio Industries Inc. 20,000 365,000
Prime Resources Group Inc. 8,300 56,544
TVX Gold Inc. 200,000 675,000
-------------------
6,597,169
MISC. FINANCIAL SERVICES -- 1.39%
Data Broadcasting Corporation 165,000 928,125
Midland Company 65,700 4,139,100
-------------------
5,067,225
PAPER PRODUCTS -- 0.72%
Greif Brothers Corporation 50,000 1,675,000
Nashua Corporation 80,000 940,000
-------------------
2,615,000
PHARMACEUTICALS -- 1.50%
Carter Wallace Inc. 100,000 1,687,500
Ivax Corporation 340,000 2,295,000
Twinlab Corporation 60,000 1,485,000
-------------------
5,467,500
PRINTING & PUBLISHING -- 3.39%
Lee Enterprises Inc. 95,000 2,808,437
Media General Inc. 125,000 5,226,562
Meredith Corporation 45,000 1,605,938
Nelson Thomas Inc. 33,000 381,563
Price Communications Corporation 93,750 802,734
Pulitzer Publishing Company 25,000 1,570,313
-------------------
12,395,547
PUBLISHING -- 0.65%
McClatchy Newspapers Inc. 67,000 1,821,562
Topps Inc. 250,000 554,688
-------------------
2,376,250
REAL ESTATE -- 1.54%
Catellus Development Corporation
(a) 200,000 4,000,000
Griffin Land & Nurseries Inc. 105,000 1,627,500
-------------------
5,627,500
RETAIL -- 4.03%
Brunos Inc. (a) 175,000 360,938
Burlington Coat Factory
Warehouse Corporation 115,000 1,890,312
Giant Foods Inc. 120,000 4,042,500
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
Lillian Vernon Corporation 80,000 $ 1,330,000
Neiman Marcus Group Inc. 180,000 5,445,000
Phar Mor Inc. (a) 65,000 609,375
Ragan Brad Inc. 30,000 1,050,000
-------------------
14,728,125
SECURITY & INVESTIGATION SERVICES -- 2.80%
Pittway Corporation 37,200 2,590,050
Rollins Inc. 330,000 6,703,125
Wackenhut Corporation 40,000 927,500
-------------------
10,220,675
TELECOMMUNICATIONS -- 4.88%
Aerial Communications Inc. 130,000 926,250
Associated Group Inc. (a) 68,000 2,014,500
Atlantic Tele Network Inc. 10,000 108,750
Centennial Cellular Corporation
(a) 150,000 3,075,000
Commonwealth Telephone
Enterprises 53,333 1,333,325
Comsat Corporation 142,000 3,443,500
RCN Corporation 70,000 2,397,500
Shared Tech Fairchild Inc. 70,000 1,023,750
Telephone & Data Systems Inc. 75,000 3,492,187
-------------------
17,814,762
TRANSPORTATION -- 2.55%
GATX Corporation 110,000 7,981,875
Hudson General Corporation 28,000 1,344,000
-------------------
9,325,875
UTILITIES -- 3.04%
Citizens Utilities Company
Delaware 200,000 1,925,000
Tejas Gas Corporation Delaware 150,000 9,187,500
-------------------
11,112,500
WIRELESS COMMUNICATIONS -- 0.08%
Teligent Inc. 12,000 295,500
-------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $271,806,848) 338,614,055
- ----------------------------------------------------------------------------
U.S. TREASURY BILLS -- 6.87%
- ----------------------------------------------------------------------------
U.S. Treasury Bill
5.08% due 01/29/98 $ 5,032,000 5,012,118
U.S. Treasury Bill 5.09% due
01/22/98 1,000,000 997,031
U.S. Treasury Bill 5.10% due
01/08/98 4,950,000 4,945,091
U.S. Treasury Bill 5.13% due
01/22/98 1,527,000 1,522,430
U.S. Treasury Bill 5.15% due
01/29/98 1,513,000 1,506,940
U.S. Treasury Bill 5.18% due
01/22/98 5,535,000 5,518,275
U.S. Treasury Bill 5.28% due
01/22/98 4,642,000 4,627,703
U.S. Treasury Bill 5.37% due
02/19/98 953,000 946,034
-------------------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $25,075,622) 25,075,622
- ----------------------------------------------------------------------------
</TABLE>
111
<PAGE> 123
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
REPURCHASE AGREEMENT -- 2.53% PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------
<S> <C> <C>
State Street Bank & Trust
Repurchase Agreement, 5.00%
due 01/02/98 Collateral: U.S.
Treasury Bond $9,410,000,
5.625%, due 11/30/99 Value
$9,433,525 $ 9,245,000 $ 9,245,000
-------------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $9,245,000) 9,245,000
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $306,127,470) 372,934,677
OTHER ASSETS LESS LIABILITIES -- (2.10)% (7,668,856)
-------------------
NET ASSETS 100% $ 365,265,821
===============================================================
</TABLE>
(a) Non-income producing security
(b) In bankruptcy
See accompanying notes to financial statements.
112
<PAGE> 124
MANAGED PORTFOLIO
OPCAP ADVISORS
NEW YORK, NEW YORK
The objective of Enterprise Accumulation Trust Managed Portfolio is to seek
growth of capital over time through investment in a portfolio consisting of
common stocks, bond and cash equivalents, the percentages of which will vary
based on management's assessments of relative investment values.
The recent volatility of the U.S. dollar and other currencies, coupled with
the Asian financial crisis, has caused some investors to be concerned about the
outlook for large U.S. multinational companies. As a result, some of these
companies' stocks fared worse in 1997 than those of more purely domestic
companies. Such companies owned by the portfolio include McDonald's Corp. and
Citicorp.
At December 31, 1997, portfolio assets were allocated 87 percent to common
stocks, 1 percent Treasury notes and bonds and 12 percent to cash and cash
equivalents.
Some of the stocks owned by the portfolio delivered exceptional returns in
1997. Many were in the financial services sector, which in general performed
well. They included, among others, Federal Home Loan Mortgage Corp. (Freddie
Mac), a home mortgage company, and ACE Ltd., a Bermuda based provider of excess
directors and officers liability insurance. Freddie Mac's stock was up 52
percent in the year, while ACE stock rose more than 60 percent.
A few other holdings were disappointing. The market price of McDonald's
Corp., the fast-food chain, increased only about 5 percent in 1997 and the
market price of Boeing Co., the aircraft manufacturer, declined. Boeing's stock
suffered when it became apparent the company was experiencing production
problems. OpCap expects these problems to last through mid-1998, after which
cash flow may accelerate.
Recently, OpCap established a new position in the common stock of Diageo
PLC, a premier global consumer products company. Diageo was formed through the
recent merger of two consumer products giants -- Grand Metropolitan and
Guinness. The portfolio already owned Grand Metropolitan stock and received
Diageo shares in the merger. OpCap then bought additional Diageo shares. The
company's well-known brands include Burger King, Pillsbury, Guinness and Dom
Perignon, among many others. OpCap also established a new position in Dow
Chemical Co., a leading producer of chemicals and plastics. Dow is in the
process of divesting its underperforming businesses to concentrate on those
businesses with the highest returns and strongest prospects. In addition to its
new strategy of focusing on its strengths, Dow is increasing shareholder value
by repurchasing shares. OpCap eliminated the portfolio's holdings in
Tele-Communications Inc., Union Pacific Corp. and Waste Management, Inc.
The portfolio's five largest equity positions at December 31 were Wells
Fargo, Federal Home Loan Mortgage, Citicorp, Dupont E.I. DeNemours & Co., and
Mattel. Major industry positions included the banking sector, miscellaneous
financial services, chemicals, insurance and machinery.
OpCap is a long-term investor in superior businesses that may increase the
value of shareholders' capital through all market conditions. The objectives of
this strategy are to preserve capital and to generate excellent returns for the
portfolio's shareholders. While one may not take lightly the impact of the
current economic difficulties in Asia, we believe each of the multinational
businesses owned by the portfolio may benefit substantially longer term even if
experiencing some short-term weakness. For instance, one of McDonald's biggest
challenges in Asia had been the very high cost of store locations in cities.
These locations are now "on sale" for roughly half the price in many locations.
OpCap believes a tight U.S. job market and the Asian crisis may
approximately offset each other in their impact on the U.S. economy. It is
probable, therefore, that inflation may not pick up markedly, nor may the U.S.
slide into a recession. Whether the stock market indexes may rise or fall in
1998 is a matter of conjecture, however, there may be a high level of market
volatility until these issues sort themselves out. Volatility creates
opportunities to buy stocks at favorable prices.
113
<PAGE> 125
CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST MANAGED PORTFOLIO
FROM INCEPTION (8/1/88) THROUGH 12/31/97
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) MANAGED PORTFOLIO* S&P 500** LIPPER GROWTH***
<S> <C> <C> <C>
8/1/88 10000 10000 10000
12/31/88 10440 10367 10236
12/31/89 13836 13652 12007
12/31/90 13336 13228 12113
12/31/91 19468 17258 15377
12/31/92 23098 18573 16249
12/31/93 25498 20445 18318
12/31/94 26152 20715 17828
12/31/95 38416 20500 22034
12/31/96 47433 35044 25130
12/31/97 59054 46734 29847
</TABLE>
* Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future performance. Shares may be worth more or less
at redemption than at original purchase.
** The S&P 500 Index is an unmanaged index which includes 500
companies which tend to be leaders in important industries
within the U.S. economy and excludes any transaction or
holding charges.
*** Lipper Analytical Services is an independent reporting
service that measures the performance of most mutual funds.
The performance results reflect an unmanaged index and are
net of all expenses other than sales charges and redemption
fees.
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.
114
<PAGE> 126
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 86.27% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 4.33%
Boeing Company 2,100,000 $ 102,768,750
Loral Space &
Communications (a) 600,000 12,862,500
-------------------
115,631,250
BANKING -- 15.65%
BankBoston Corporation 1,000,000 93,937,500
Citicorp 1,000,000 126,437,500
First Empire State Corporation 104,500 48,592,500
Wells Fargo & Company 440,000 149,352,500
-------------------
418,320,000
CHEMICALS -- 9.94%
Dow Chemical Company 550,000 55,825,000
Du Pont (E. I.) de Nemours
& Company 2,050,000 123,128,125
Hercules Inc. 700,000 35,043,750
Monsanto Company 1,103,000 46,326,000
Solutia Inc. 200,000 5,337,500
-------------------
265,660,375
COMPUTER SOFTWARE -- 1.19%
Computer Associates
International Inc. 600,000 31,725,000
CONSUMER NON-DURABLES -- 4.28%
Mattel Inc. 3,075,000 114,543,750
CONSUMER PRODUCTS -- 1.03%
Nike Inc. 700,000 27,475,000
DRUGS & MEDICAL
PRODUCTS -- 2.66%
Becton, Dickinson & Company 1,425,000 71,250,000
ELECTRICAL EQUIPMENT -- 0.38%
Varian Associates Inc. 200,000 10,112,500
ELECTRONICS -- 0.40%
Unitrode Corporation (a) 500,000 10,750,000
ENERGY -- 0.55%
Triton Energy Ltd. (a) 500,000 14,593,750
FINANCE -- 2.00%
American Express Company 600,000 53,550,000
FOOD & BEVERAGES & TOBACCO -- 2.97%
Diageo PLC 2,100,000 79,537,500
HOTELS & RESTAURANTS -- 4.11%
McDonald's Corporation 2,300,000 109,825,000
INSURANCE -- 7.59%
ACE Ltd. 700,000 67,550,000
EXEL Ltd. 1,800,000 114,075,000
Transamerica Corporation 200,000 21,300,000
-------------------
202,925,000
MACHINERY -- 5.78%
Caterpillar Inc. 1,800,000 87,412,500
Tenneco Inc. 1,700,000 67,150,000
-------------------
154,562,500
MISC. FINANCIAL
SERVICES -- 10.11%
Countrywide Credit
Industries Inc. 800,000 34,300,000
Federal Home Loan Mortgage
Corporation 3,450,000 144,684,375
Federal National Mortgage
Association 1,600,000 91,300,000
-------------------
270,284,375
PAPER & FOREST PRODUCTS -- 2.42%
Champion International
Corporation 1,425,000 64,570,313
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
PRINTING & PUBLISHING -- 2.55%
Time Warner Inc. 1,100,000 $ 68,200,000
REAL ESTATE -- 1.96%
Security Capital Group Inc.
(Class A)(a) 33,156 52,385,902
TECHNOLOGY -- 3.19%
Intel Corporation 400,000 28,100,000
National Semiconductor
Corporation (a) 2,200,000 57,062,500
-------------------
85,162,500
TELECOMMUNICATIONS -- 3.18%
Tele-Communications Inc. New 3,000,000 84,937,500
-------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,497,257,680) 2,306,002,215
- --------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.01%
- --------------------------------------------------------------------------
RETAIL -- 0.01%
Venture Stores 32,922 358,027
-------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,566,100) 358,027
- --------------------------------------------------------------------------
COMMERCIAL PAPER -- 11.52%
- --------------------------------------------------------------------------
Ameritech Corporation, 5.89%
due 02/04/98 $30,000,000 29,833,117
Banc One Corporation, 5.85%
due 01/05/98 34,167,000 34,144,791
Deere (John) Capital
Corporation
5.55% due 02/09/98 30,000,000 29,819,625
Deere (John) Capital
Corporation
5.70% due 02/09/98 25,000,000 24,845,625
General Electric Capital
Corporation,
5.75% due 02/02/98 50,000,000 49,744,444
Merrill Lynch & Company Inc.
5.79% due 01/29/98 40,000,000 39,819,867
Ford Motor Credit Company
5.72% due 01/29/98 50,000,000 49,777,555
Ford Motor Credit Company
5.75% due 01/12/98 50,000,000 49,912,153
-------------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $307,897,177) 307,897,177
- --------------------------------------------------------------------------
U.S. TREASURY BONDS -- 0.36%
- --------------------------------------------------------------------------
U.S. Treasury Bond
6.25% due 08/15/23 9,300,000 9,571,002
-------------------
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $8,682,639) 9,571,002
- --------------------------------------------------------------------------
U.S. TREASURY NOTES -- 0.47%
- --------------------------------------------------------------------------
U.S. Treasury Note
7.875% due 04/15/98 8,370,000 8,429,092
U.S. Treasury Note
7.875% due 08/15/01 3,952,500 4,224,353
-------------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $12,357,711) 12,653,445
- --------------------------------------------------------------------------
</TABLE>
115
<PAGE> 127
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT NUMBER OF SHARES OR
SECURITIES -- 0.24% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
Federal Home Loan Bank
Consolidated Discount Note,
5.75% due 01/02/98 $ 6,300,000 $ 6,298,994
-------------------
TOTAL SHORT TERM GOVERNMENT SECURITIES
(IDENTIFIED COST $6,298,994) 6,298,994
- --------------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement,
5.00% due 01/02/98
Collateral: U.S. Treasury
Note $18,025,000,
5.625% due 10/31/99
Value $18,159,232 $17,800,000 17,800,000
-------------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $17,800,000) 17,800,000
- --------------------------------------------------------------------------
REPURCHASE NUMBER OF SHARES OR
AGREEMENTS -- 0.67% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,851,860,301) $ 2,660,580,860
OTHER ASSETS LESS LIABILITIES -- 0.46% 12,351,186
-------------------
NET ASSETS 100% $ 2,672,932,046
===============================================================
</TABLE>
(a) Non-income Producing
See accompanying notes to financial statements.
116
<PAGE> 128
INTERNATIONAL GROWTH PORTFOLIO
BRINSON PARTNERS, INC.
CHICAGO, ILLINOIS
The objective of Enterprise Accumulation Trust International Growth
Portfolio is to seek capital appreciation, primarily through a diversified
portfolio of non-U.S. equity securities.
For the year ended December 31, 1997, the portfolio showed a slight gain.
Currency allocation and security selection added value, which was partially
offset by market selection. Within markets, the 5 percent allocation to cash
detracted from results as most markets outside of the Pacific region registered
strong double-digit returns. The underweight in Switzerland also detracted but
the portfolio's underweight to the turbulent Pacific region added value. The
overweight of the U.S. dollar and underweight in the Japanese yen and core
European currencies contributed to the positive results. Within Japan, the
underweight position in the poorly performing banks and financial sectors and
the emphasis on blue-chip exporters, pharmaceuticals, electricals, and insurance
companies added value.
Continental European markets were strong performers during the course of
the first 10 months, despite reacting negatively in October to the banking and
currency crisis in Asia, as investors began to incorporate the anticipated
negative consequences of a slowdown in this region's overall demand. Commodity
and basic industry companies, luxury goods and spirits manufacturers, as well as
companies engaged in infrastructure, construction and commodity goods projects
and multinational banks were particularly vulnerable. Despite this, over the
full year, European markets registered high double-digit returns, reflecting an
environment of benign inflation, low interest rates, improving growth and
ongoing company restructuring.
In January 1997, the portfolio held underweights in the four relevant
Southeast Asia countries: Japan, Hong Kong, Malaysia and Singapore. Brinson
Partners gradually increased exposure to Malaysia and Singapore to a modest
overweight, using defensive issues as the market declines there offered
attractive opportunities to gain superior long-term returns. Conversely, in
recognition of a number of vulnerabilities in the Japanese economy, Brinson
reduced exposure there in July and again in early December to the current level
of a 6 percent underweight. Furthermore, the manager reinstated a partial hedge
on the yen in October which has proven beneficial. The portfolio has been
substantially underweight in Japanese banks for a sustained period as they
sorted through their property loan problems of the early '90s and Brinson
further cut that position by selling Sumitomo Trust and Sanwa Bank in November.
The portfolio remains underweight in Hong Kong equities and has fully hedged the
currency exposure.
The Japanese equity market represents the largest underweight in the
portfolio. In the other developed markets, Brinson continues to emphasize New
Zealand and Australia, Germany, Belgium and the United Kingdom. The portfolio is
neutrally positioned in Finland and Spain, and invested but quite underweight in
Hong Kong, Switzerland, the Netherlands, Canada and France. Brinson also
recently established a position in Sweden, which ranks reasonably in relative
attractiveness. The portfolio continues to maintain a 5 percent strategic cash
position reflecting Brinson's view that non-U.S. equity markets are expensive.
In addition to the currency underweights in the Japanese yen and the Hong
Kong dollar, the portfolio maintains an underweight exposure to the overvalued
U.K. pound. These underweights are primarily hedged into the U.S. dollar. The
New Zealand dollar is modestly attractive and represents a small overweight
position. This overweight is the result of allowing the currency to mirror the
overweight market allocation.
The portfolio continues to undergo restructuring in order to reduce its
overall level of risk and in particular, to minimize its exposure to
economically sensitive sectors such as steel. Brinson, however, is finding
attractive valuations in U.K. food manufacturers. They are undergoing extensive
restructuring in the form of cost cutting, personnel reductions and plant
modernizations. Within Japan, the portfolio continues to maintain its
underweight to Japanese banks and overweight to the Japanese electronic
industry. The thrust of Brinson's strategy in Asia (ex-Japan) is to underweight
interest rate and economically sensitive stocks, such as banking, property and
construction. In addition, highly leveraged stocks and stocks with foreign
currency debt have been underweighted. Brinson emphasizes securities with
defensive earnings, such as utilities, consumer non-durables and export carriers
which are less exposed to weakening domestic economies.
As with all international growth funds, Enterprise Accumulation Trust
International Growth Portfolio carries additional risks associated with possibly
less stable foreign securities and currencies, lack of uniform accounting
standards and political instability.
117
<PAGE> 129
CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST INTERNATIONAL GROWTH PORTFOLIO
FROM INCEPTION (11/30/94) THROUGH 12/31/97
<TABLE>
<CAPTION>
MEASUREMENT PERIOD INTERNATIONAL
(FISCAL YEAR COVERED) PORTFOLIO* EAFE** LIPPER GROWTH***
<S> <C> <C> <C>
11/30/94 10000 10000 10000
12/31/94 10040 10063 9867
12/31/95 11510 11191 10855
12/31/96 12967 11868 12422
12/31/97 13648 12079 13325
</TABLE>
* Enterprise performance numbers does not include variable
account expenses. Remember that historic performance does not
predict future performance. Shares may be worth more or less
at redemption than at original purchase.
** The EAFE Index is an unmanaged index which excludes
transaction or holding charges.
*** Lipper Analytical Services is an independent reporting
service that measures the performance of most mutual funds.
The performance results reflect an unmanaged index and are
net of all expenses other than sales charges and redemption
fees.
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.
118
<PAGE> 130
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 93.10% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 4.65%
Amcor Ltd. 18,500 $ 81,387
Boral Ltd. 46,400 117,336
Brambles Industries Ltd. 8,000 158,766
Broken Hill Proprietary 56,900 528,455
Coca Cola Amatil 9,000 67,257
CSR Ltd. 33,000 111,840
David Jones Ltd. 117,000 131,921
Lend Lease Corporation 8,205 160,428
Mayne Nickless Ltd. 16,000 84,571
Mim Holdings Ltd. 56,709 34,743
National Australia Bank 39,000 544,713
News Corporation 84,254 465,109
Pacific Dunlop Ltd. 54,000 114,382
Qantas Airways Ltd. 57,590 101,943
Rio Tinto Ltd. 20,763 242,268
Santos Ltd. 13,000 53,548
Telstra Corporation 20,000 42,233
Westpac Bank Corporation 62,000 396,650
WMC Ltd. 37,000 129,014
Woolworths Ltd. 20,000 66,870
-----------
3,633,434
BELGIUM -- 3.51%
Bruxelles Lambert Groupe 1,050 151,899
Delhaize Le Lion 5,200 263,852
Electrabel 2,070 478,797
Fortis AG 1,828 381,378
Fortis AG (Rts)(a) 128 17
Generale De Banque 500 217,606
Generale De Banque 300 769
Kredietbank 620 260,209
Kredietbank(Vvpr) 13 5,456
Petrofina SA 900 332,177
Society General De Belgique 1,500 137,243
Solvay 3,100 194,947
Tractebel CAP 2,500 217,943
Union Miniere(a) 1,423 98,705
-----------
2,740,998
CANADA -- 3.32%
Agrium Inc 6,200 74,840
Alcan Aluminum Ltd. 4,900 135,097
Bank Montreal 3,600 159,589
Barrick Gold Corporation 3,000 55,946
Canadian National Railway Company 3,400 160,120
Canadian Pacific Ltd. 11,300 304,433
Hudsons Bay Company 3,900 86,921
Imasco Ltd. 1,700 60,670
Imperial Oil Ltd. 4,000 257,514
Magna International Inc. 1,200 75,575
Moore Corporation Ltd. 3,600 55,295
Newbridge Networks Corporation(a) 1,500 52,535
Noranda Inc. 5,100 87,793
Northern Telecom Ltd. 900 80,078
Nova Corporation Alberta 13,100 124,670
Potash Corp Saskatchewan Inc. 1,400 116,581
Royal Bank Canada Montreal 4,600 243,350
Seagram Ltd. 2,800 90,620
Telus Corporation 6,600 145,481
Transcanada Pipelines Ltd. 6,900 154,025
Westcoast Energy Inc. 3,200 74,231
-----------
2,595,364
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
FINLAND -- 0.73%
Cultor Oyj 700 $ 38,012
Merita A Ltd. 12,900 70,524
Metsa Serla Oy 3,300 25,729
Nokia (AB) Oy 3,700 262,688
Outokumpu Oy 2,600 31,719
Pohjola 500 18,529
Rauma Oy 111 1,731
Sampo Insurance A 1,200 38,966
Upm Kymmene Oy 4,000 79,986
-----------
567,884
FRANCE -- 5.18%
Accor 724 134,611
Alcatel Alsthom 1,476 187,611
Axa Uap 2,620 202,731
Axa Uap Cvg 2,120 2,078
Banque National Paris A 2,800 148,828
Cie Bancaire SA 260 42,120
Cie De St Gobain 1,522 216,218
Cie Fin Paribas 1,500 130,348
CSF Thomson 3,900 122,926
Dexia France 1,259 145,804
Eaux Cie General (Wts) (a) 2,369 1,610
Elf Aquitaine 2,020 234,942
France Telecom 5,700 206,747
Generale Des Eaux 1,669 232,942
Groupe Danone 600 107,170
Lafarge Coppee SA 1,300 85,299
Lagardere 3,700 122,339
Michelin 2,965 149,272
Pechiney 3,216 126,962
Peugeot SA 1,625 204,931
Pinault Printemps Redo 400 213,409
Rhone Poulenc Ord A 4,516 202,295
Seita 4,800 172,269
Soc Generale 1,515 206,414
Suez Lyonnaise Des Eaux 1,774 196,309
Total Company 1,827 198,834
Usinor 3,700 53,424
-----------
4,048,443
GERMANY -- 9.66%
Allianz AG 3,150 815,976
BASF AG 4,200 148,837
Bayer AG 11,400 425,848
Bayer Motoren Werken 400 299,063
Commerzbank AG 9,550 375,853
Continental Ag 8,650 190,892
Daimler Benz AG 4,350 305,161
Deutsche Bank AG 8,900 628,311
Deutsche Telekom 31,200 587,076
Hochtief AG 3,000 118,402
Hoechst AG 3,800 133,078
Man AG 500 144,807
Mannesmann AG 720 363,812
Metro AG 6,072 217,707
Munchener Ruckvers 1,550 584,174
Preussag AG 900 274,660
Rheim-West Elektr AG 6,450 345,994
Schering AG 3,650 352,025
Siemens AG 7,000 414,408
Veba AG 7,550 514,119
Volkswagen AG 550 309,403
-----------
7,549,606
</TABLE>
119
<PAGE> 131
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
HONG KONG -- 1.02%
Cheung Kong Holdings 21,000 $ 137,534
Citic Pacific Limited 11,000 43,722
CLP Holdings 12,000 66,589
Hang Seng Bank 9,000 86,818
Hong Kong & China Gas 52,000 100,658
Hong Kong Telecommunications 53,600 110,327
Hutchison Whampoa 24,000 150,523
Sun Hung Kai Properties 10,000 69,686
Swire Pacific 6,000 32,907
-----------
798,764
IRELAND -- 0.28%
Smurfit (Jefferson) Group 78,000 216,514
ITALY -- 4.01%
Assic Generali 12,670 311,199
Banca Commerciale Italiana 33,000 114,726
Credito Italiano 63,000 194,271
Danieli Di Risp 19,000 68,310
Edison SPA 16,000 96,778
Eni ADS 3,300 188,306
Eni Ord 51,000 289,163
IMI 16,900 200,622
INA 61,000 123,621
Mediobanca SPA 7,000 54,963
Montedison SPA 214,580 192,746
Rinascente LA 19,800 147,744
Rinascente (Wts) (a) 400 484
Rinascente Savings Risp 18,000 67,157
SAI Di Risp 20,000 88,185
Soc Italiano 23,500 96,976
Telecom Italia Mobile 41,000 189,240
Telecom Italia Mobile Di Risp 100,000 284,341
Telecom Italia Spa 17,775 113,543
Telecom Italia Spa Risp 71,500 315,263
-----------
3,137,638
JAPAN -- 18.73%
Amada Company 31,000 115,149
Asahi Glass Company 20,000 94,968
Bank of Tokyo/Mitsubishi 28,000 386,000
Canon Inc. 25,000 582,063
Canon Sales 10,000 114,115
Citizen Watch Company 29,000 194,340
Dai Nippon Printng 28,000 525,389
Daiichi Pharmaceutical 25,000 281,458
Daikin Kogyo 31,000 116,811
Daiwa House Industries Co. 16,000 84,552
Denso Corporation 17,000 305,966
Fanuc Co. 12,800 484,277
Fujitsu 18,000 193,000
Hitachi 61,000 434,480
Honda Motor Company 10,000 366,853
Hoya Corporation 4,000 125,603
Inax Corporation 22,000 63,859
Ito Yokado Company 12,000 611,166
Kaneka Corporation 31,000 139,841
Keio Teito Electric Rail 35,000 133,760
Kintetsu 36,000 192,173
Kirin Brewery Company 36,000 261,929
Kokuyo Company 10,000 172,321
Kuraray Company Ltd. 37,000 306,043
Kyocera Corporation 4,100 185,893
Marui Company 16,000 248,755
Matsushita Electric Ind 46,000 672,896
Mitsubishi Paper 39,000 54,660
NGK Insulators 50,000 444,206
Nintendo 3,100 303,898
Nippon Meat Packer 20,000 272,651
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
Nippon Steel Corporation 25,000 $ 36,953
Okumura 36,000 85,471
Osaka Gas Corporation 59,000 134,656
Sankyo Pharmaceutical Company 22,000 497,051
Secom Company 7,000 447,117
Seino Transport 21,000 104,702
Sekisui House 48,000 308,432
Sony Corporation 6,700 595,236
Sumitomo Bank 33,000 376,580
Sumitomo Chemical Industries 36,000 82,714
Sumitomo Electric Industries 25,000 340,813
Takeda Chemical Industries 19,000 541,319
TDK Corporation 5,000 376,809
Tokio Marine & Fire 28,000 317,378
Tokyo Electric Power 7,900 143,999
Tokyo Steel Manufacturing 16,000 54,040
Tonen Corporation 22,000 118,618
Toray Industries Inc. 110,000 492,839
Toshiba Corporation 72,000 299,426
Toyo Suisan Kaisha 18,000 124,623
Toyota Motor Corporation 19,000 544,229
Yamazaki Baking Company 15,000 145,899
-----------
14,637,979
MALAYSIA -- 1.59%
Hume Industries Berhad 30,000 31,469
Kuala Lumpur Kepong 65,000 139,542
Land & General Holdings 62,000 11,477
Malayan Banking Berhad 30,000 87,158
Malaysia International Shipping 26,000 38,103
Nestle Malaysia Berhad 16,000 74,045
New Straits Times Press 33,000 40,895
Perusahaan Otomobl 19,000 18,563
Petronas Gas Berha 30,000 68,261
Public Bank Berhad Foreign 24,000 8,268
Public Bank Berhad Local 31,000 9,644
Public Bank FGN (Rts) 4,800 0
Resorts World Berhad 27,000 45,469
Rothmans of Pall Mall 17,000 132,215
Sime Darby Berhad 93,000 89,425
Telekom Malaysia 67,500 199,576
Tenaga Nasional 80,000 170,716
UMW Holdings Berhad 10,000 7,585
United Engineers (Malay) 22,000 18,326
YTL Corporation Berhad 36,000 48,592
YTL Power International 800 615
-----------
1,239,944
NETHERLANDS -- 4.55%
ABN Amro Holdings NV 14,709 286,541
Akzo Nobel NV 550 94,829
Elsevier NV 17,200 278,234
Heineken NV 1,300 226,321
Hoogovens & Staalf 1,562 64,016
Ing NTFL 8,515 358,632
KLM 2,834 104,826
Kon Ptt Nederland 8,824 368,165
Philips Electronics 4,500 269,869
Royal Dutch Petroleum 20,100 1,103,312
Unilever NV Cva 6,480 399,477
-----------
3,554,222
NEW ZEALAND -- 3.23%
Brierley Investment NPV 519,000 370,670
Carter Holt Harvey NPV 179,000 276,471
Fletcher Challenge Building
Division NPV 58,250 119,057
Fletcher Challenge Energy
Division NPV 63,250 221,458
</TABLE>
120
<PAGE> 132
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
Fletcher Challenge Forest
Division NPV 123,958 $ 102,926
Fletcher Challenge Paper Division
NPV 117,500 153,509
Lion Nathan Limited 37,000 82,928
Telecom Corporation of New
Zealand 231,000 1,119,987
Telecom Corporation of New
Zealand (ADR) 2,000 77,500
-----------
2,524,506
SINGAPORE -- 1.85%
City Developments 17,000 78,671
DBS Lands 38,000 58,167
Elec & Eltek International 4,400 20,152
Foreign Reg Bank Singapore 17,000 145,239
Fraser & Neave 7,000 30,317
Hotel Properties 61,000 39,810
Keppel Corporation 20,000 57,431
Keppel Land Ltd. 21,000 28,905
Natsteel Ltd. 13,000 17,585
Overseas Chinese Bank 29,600 172,103
Singapore Airlines 31,000 202,314
Singapore Press Holdings 7,000 87,630
Singapore Telecom 145,000 270,128
United Overseas Bank 33,000 183,061
Venture Manufacturing 9,000 25,096
Wing Tai Holdings 22,000 25,714
-----------
1,442,323
SPAIN -- 2.52%
Acerinox SA 200 29,629
Banco Bilbao Vizcaya 6,800 220,046
Banco Central Hispanoamericano 5,940 144,650
Banco Popular Esp 1,920 134,217
Banco Santander 5,400 180,414
Corp Mapfre Sa 2,400 63,643
Empresa Nac Electricid 12,900 229,042
Formento di Const Y Contra 2,800 106,597
Gas Natural Sdg 2,500 129,636
Iberdrola SA 13,800 181,615
Repsol SA 2,900 123,728
Repsol SA (ADR) 1,000 42,562
Tabacalera SA 300 24,319
Telefonica De Espana 8,700 248,408
Vallehermoso SA 1,600 49,045
Viscofan Envoltura 2,600 65,277
-----------
1,972,828
SWEDEN -- 1.61%
Abb Ab 5,700 67,482
Astra Ab 13,200 228,592
Electrolux Ab 900 62,457
Ericsson Lm Tel 4,600 172,937
Hennes And Mauritz 3,100 136,652
Nordbanken Holding 30,400 171,912
Securitas Ab 1,900 57,431
Skanska Ab 1,700 69,692
Svenska Handelsbanken 2,700 93,345
Swedish Match 21,000 70,089
Volvo Ab 4,900 131,450
-----------
1,262,039
SWITZERLAND -- 4.74%
Abb Ag Series A 70 87,907
Credit Suisse Group 2,361 365,170
Holderbk Fn Glarus 123 100,339
Nestle SA 290 434,444
Novartis AG 591 958,575
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
Roche Holdings AG 67 $ 665,094
Sairgroup (a) 75 102,655
Schw Ruckversicher 168 314,109
Sulzer Ag 128 81,117
Swiss Life 163 127,950
UBS 172 248,607
Zurich Versicharung 463 220,537
-----------
3,706,504
UNITED KINGDOM -- 21.92%
Abbey National 19,000 342,034
Barclays PLC 11,000 292,836
Bass 11,500 178,884
BAT Industries 92,200 840,787
BG 97,470 438,659
BG (B Shares) 8,000 3,811
Billiton PLC 73,000 187,048
Booker PLC 44,000 231,264
British Energy 46,000 319,598
British Petroleum 55,423 733,165
British Sky Broadcasting 25,000 187,245
British Steel 75,000 161,376
British Telecom 86,000 677,642
BTR PLC 38,000 114,844
Cable & Wireless 21,000 184,535
Cadbury Schweppes 34,000 343,156
Centrica 79,000 116,133
Charter 18,357 225,834
Coats Viyella PLC 75,900 113,446
Diageo PLC 41,600 380,587
FKI 93,500 293,326
General Electric Company 82,900 537,164
Glaxo Wellcome 49,200 1,172,956
Great Universal Stores 31,000 390,537
Greenalls Group 25,000 179,854
Hanson PLC 31,650 141,205
Hillsdown Holdings 97,000 235,797
House of Fraser PLC 104,000 343,348
HSBC Holdings 21,500 557,957
Inchcape 52,000 139,218
Legal & General 47,500 415,060
Lloyds TSB Group PLC 71,264 927,115
Marks & Spencer 56,500 558,747
Mirror Group 100,000 320,287
National Westminster Bank 19,700 327,455
Northern Foods 56,000 242,827
Peninsular and Oriental Steam Nav 35,500 403,788
Reckitt & Colman 10,700 167,839
Reuters Holdings 21,000 229,375
Rio Tinto Corporation 21,100 260,099
RJB Mining 55,000 114,729
Royal Sun Alliance Ins 26,738 269,212
Scottish Hydro 23,400 192,941
Sears 137,000 119,262
Sedgwick Group 90,000 209,912
Smithkline Beecham 51,000 525,641
Tate & Lyle PLC 24,000 197,494
TESCO 37,000 305,102
Thames Water 26,000 387,121
Unilever 22,200 190,959
Vodafone Group 51,300 370,745
Williams Holdings 59,000 327,547
-----------
17,127,503
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $71,447,839) 72,756,493
</TABLE>
121
<PAGE> 133
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PREFERRED STOCK -- 0.68% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.15%
News Corporation 24,187 $ 119,711
GERMANY -- 0.29%
Henkel Kgaa 3,600 227,132
ITALY -- 0.24%
Fiat SPA 119,600 182,544
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $474,888) 529,387
COMMERCIAL PAPER -- 1.92%
Arco Coal Australia 5.90%
due 01/23/98 1,000,000 996,394
General Electric Capital
Corporation Discount, 5.78%
due 01/14/98 500,000 498,956
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $1,495,350) 1,495,350
State Street Bank & Trust
Repurchase Agreement, 4.00%
due 01/02/98
Collateral: U.S. Treasury
Note $1,440,000, 8.5% due
02/15/20 Value $1,909,351 $ 1,870,000 1,870,000
-----------
TOTAL REPURCHASE AGREEMENTS
(IDENTIFIED COST $1,870,000) 1,870,000
TOTAL INVESTMENTS
(IDENTIFIED COST $75,288,077) $ 76,651,230
OTHER ASSETS LESS LIABILITIES -- 1.91% 1,496,273
-----------
NET ASSETS 100% $ 78,147,503
</TABLE>
(a) Non-income Producing
(Rts) Rights
(Wts) Warrants
ADR American Depository Receipts
ADS American Depository Shares
See accompanying notes to financial statements.
122
<PAGE> 134
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 1997 high-yield new issuance was a record $125.1 billion. For
comparison 1996 issuance was $73.4 billion. The estimated size of the high yield
market is now $454 billion. Because spreads did not widen, 1997 was also a
record year in terms of new money committed to the high-yield market. Mutual
fund inflows reached a new high at $17.3 billion, coupon interest was estimated
at $32 billion, and structured products contributed an estimated $5 to $8
billion. Accordingly, it appears that significant new funds were invested by
financial institutions, pension funds and foreign buyers. As a result, for the
majority of the year demand exceeded supply, causing spreads to tighten in
virtually all sectors.
Given the strong economic conditions that prevailed through 1997 and the
substantial amounts of liquidity in the U.S. financial system, it is not
surprising that defaults among high-yield issuers remained below their historic
averages.
However, 1997 also saw the decoupling of the U.S. Treasury and stock
markets creating greater uncertainty in the high-yield market place. The
decoupling is the result of the economic crisis in Asia, with both markets
forecasting slower economic conditions. The magnitude of the impact and its
duration are of great importance to the high-yield market.
The consensus is the Federal Reserve is on hold or possibly considering an
ease in interest rates. Therefore the interest rate picture is at worst benign
or possibly constructive for the fixed income market. Key determinants for the
market in 1998 may be the extent the domestic economy slows in reaction to the
developments in Asia and the continuation of strong corporate cash flow. A
significant slowdown in economic activity would likely result in a decline in
equity prices. How sharp the decline is and its impact on the stock market may
be important. A relatively stable stock market, combined with 2.0 percent Gross
Domestic Product growth may lead to a stable high-yield market. As long as
default rates remain below or near their historic average the technical picture
may remain sound.
To date the impact of the Asia crisis upon the high-yield market has been
minimal. The technical balance of the market is favorable and is expected to
remain so for the short term, so long as the stock market does not drop
substantially from its present levels. If the U.S. stock market begins to
discount significantly slower economic conditions this would likely result in
wider spreads in the high-yield market. As always, Caywood-Scholl may emphasize
selectivity in the investment process, looking for those securities which offer
the most attractive risk-adjusted returns.
Like all investments in high-yield bond funds, an investment in the
High-Yield Bond Portfolio carries an increased risk that issuers of securities
in which the High-Yield Bond Portfolio invests may default in the payment of
principal and interest as compared to the risk of such defaults in other income
portfolios. In addition, an investment in the High-Yield Bond Portfolio may be
subject to certain other risks relating to the market price, relative liquidity
in the secondary market and sensitivity to interest rate and economic changes on
the noninvestment grade securities in which the High-Yield Bond Portfolio
invests that are higher than may be associated with higher rated, investment
grade securities.
123
<PAGE> 135
CHANGE IN VALUE OF A $10,000 INVESTMENT IN
ENTERPRISE ACCUMULATION TRUST HIGH-YIELD BOND PORTFOLIO
FROM INCEPTION (11/30/94) THROUGH 12/31/97
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) HIGH-YIELD BOND* LEHMAN BB** LIPPER GROWTH***
<S> <C> <C> <C>
11/30/94 10000 10000 10000
12/31/94 10111 10079 10025
12/31/95 11788 12280 11767
12/31/96 13312 13376 13257
12/31/97 15093 15066 14969
</TABLE>
* Enterprise performance numbers does not include variable
account expenses. Remember that historic performance does not
predict future performance. Shares may be worth more or less
at redemption than at original purchase.
** The Lehman BB Index is an unmanaged index which excludes
transaction and holding charges.
*** Lipper Analytical Services is an independent reporting
service that measures the performance of most mutual funds.
The performance results reflect an unmanaged index and are
net of all expenses other than sales charges and redemption
fees.
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.
124
<PAGE> 136
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
CORPORATE BONDS, CONVERTIBLE
SECURITIES & COMMON NUMBER OF SHARES OR
STOCKS -- 80.20% PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 0.82%
Universal Outdoor Inc.
9.75% due 10/15/06 $ 500,000 $ 561,688
APPAREL & TEXTILES -- 1.21%
Brazos Sportswear Inc. 10.50% due
07/01/07 300,000 299,250
Carter William Company Acquired
10.375% due 12/01/06 500,000 527,500
-----------
826,750
AUTOMOTIVE -- 0.79%
United Auto Group Inc. 11.00% due
07/15/07 550,000 537,625
BANKING -- 2.90%
Bay View Capital Corporation
Delaware, 9.125% due 08/15/07 450,000 462,375
Imperial Credit Industries Inc.
9.875% due 01/15/07 550,000 540,375
Southern Pacific Funding
Corporation, 11.50% due
11/01/04 250,000 248,750
Western Financial Savings Bank
Orange California, 8.50% due
07/01/03 750,000 732,187
-----------
1,983,687
BROADCASTING -- 7.91%
Chancellor Radio Broadcasting
8.125% due 12/15/07 750,000 735,000
Echostar Communications
Corporation, Zero Coupon due
06/01/04 800,000 731,000
Fox Kids Worldwide Inc. Zero
Coupon due 11/01/07 750,000 445,312
Fox Kids Worldwide Inc. 9.25% due
11/01/07 600,000 580,500
Fox/Liberty Media Inc. 8.875% due
08/15/07 700,000 698,250
Fox/Liberty Networks Llc/Fln Zero
Coupon due 08/15/07 200,000 128,250
Grupo Televisa S A De C V 11.875%
due 05/15/06 100,000 113,375
Rogers Communications Inc 8.875%
due 07/15/07 500,000 500,000
Rogers Communications Inc. 9.125%
due 01/15/06 200,000 203,000
Sinclair Broadcast Group Inc.
8.75% due 12/15/07 600,000 604,500
TCI Satellite Entertainment Inc.
Zero Coupon due 02/15/07 1,000,000 668,750
-----------
5,407,937
BUILDING & CONSTRUCTION -- 1.11%
Building Materials Corporation
America, 8.00% due 10/15/07 400,000 401,000
Nortek Inc. 9.125% due 09/01/07 350,000 357,875
-----------
758,875
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
CABLE -- 4.18%
Adelphia Communications
Corporation, 9.25% due 10/01/02 $ 250,000 $ 255,000
Adelphia Communications
Corporation, 10.50% due
07/15/04 850,000 915,875
Cablevision Systems Corporation
7.875% due 12/15/07 350,000 357,346
Century Communications
Corporation, 9.50% due 03/01/05 400,000 421,000
TCI Communications Inc. 6.875%
due 02/15/06 900,000 905,157
-----------
2,854,378
CHEMICALS -- 1.45%
General Chemical Corporation
9.25% due 08/15/03 250,000 259,375
Huntsman Polymers Corporation
11.75% due 12/01/04 250,000 280,313
Pioneer Amers Acquisition
Corporation, 9.25% due 06/15/07 450,000 450,000
-----------
989,688
COMMUNICATIONS -- 4.83%
Globalstar L P 10.75% due
11/01/04 400,000 391,000
Globalstar L P 11.375% due
02/15/04 600,000 604,500
Globalstar Telecommunications
(Wts) 450 51,300
Iridium Capital Corporation
13.00% due 07/15/05 600,000 630,750
Iridium Capital Corporation
14.00% due 07/15/05 800,000 876,000
Iridium World Communications
(Wts) 450 63,000
Orion Network Systems Inc. Zero
Coupon due 01/15/07 900,000 688,875
-----------
3,305,425
CONSUMER PRODUCTS -- 2.44%
CLN Holdings Inc. Zero Coupon due
05/15/01 400,000 266,000
E & S Holdings Corporation
10.375% due 10/01/06 250,000 231,250
French Fragrances Inc. 10.375%
due 05/15/07 350,000 368,375
Herff Jones Inc. 11.00% due
08/15/05 350,000 378,875
Sealy Mattress Company Zero
Coupon due 12/15/07 700,000 424,375
-----------
1,668,875
</TABLE>
125
<PAGE> 137
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
CONTAINERS/PACKAGING -- 5.20%
Huntsman Packaging Corporation
9.125% due 10/01/07 $ 150,000 $ 154,500
Owens Illinois Inc. 8.10% due
05/15/07 1,550,000 1,659,368
Plastic Containers Inc. 10.00%
due 12/15/06 100,000 105,250
Printpack Inc. 9.875% due
08/15/04 500,000 531,250
Printpack Inc. 10.625% due
08/15/06 250,000 265,625
Stone Container Corporation
10.75% due 10/01/02 200,000 206,500
United States Can Corporation
10.125% due 10/15/06 600,000 633,000
-----------
3,555,493
CRUDE & PETROLEUM -- 0.37%
Clark Refining & Marketing Inc.
8.875% due 11/15/07 250,000 251,875
ENERGY -- 1.94%
Canadian First Oil Ltd 8.75% due
09/15/07 300,000 303,375
Chesapeake Energy Corporation
9.125% due 04/15/06 150,000 154,500
Clark USA Inc. 10.875% due
12/01/05 800,000 871,000
-----------
1,328,875
ENTERTAINMENT & LEISURE -- 1.90%
AMF Group Inc. 10.875% due
03/15/06 850,000 931,813
Cobblestone Golf Group Inc.
11.50% due 06/01/03 200,000 217,500
Livent Inc. 9.375% due 10/15/04 150,000 150,000
-----------
1,299,313
FOOD & BEVERAGES & TOBACCO -- 6.77%
Jitney Jungle Stores America
Inc., 10.375% due 09/15/07 700,000 724,500
NBTY Inc. 8.625% due 09/15/07 800,000 800,000
North Atlantic Trading Inc.
11.00% due 06/15/04 350,000 366,625
Ralphs Grocery Company 10.45% due
06/15/04 450,000 506,250
Ralphs Grocery Company 11.00% due
06/15/05 450,000 513,000
Randalls Food Markets Inc. 9.375%
due 07/01/07 900,000 927,000
Shoppers Food Warehouse
Corporation, 9.75% due 06/15/04 350,000 357,875
Twin Laboratories Inc. 10.25% due
05/15/06 400,000 430,000
-----------
4,625,250
GAMING -- 0.79%
Trump Atlantic City Associates
11.25% due 05/01/06 550,000 539,000
HEALTH CARE -- 4.61%
Dade International Inc. 11.125%
due 05/01/06 350,000 389,375
Kinetic Concepts Inc. 9.625% due
11/01/07 250,000 253,750
Mariner Health Group Inc.
9.50% due 04/01/06 200,000 208,000
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
Maxxim Medical Inc. 10.50% due
08/01/06 $ 650,000 $ 703,625
Mediq Inc. 7.50% due 07/15/03 575,000 588,656
Quest Diagnostics Inc. 10.75% due
12/15/06 600,000 657,000
Vencor Inc. 8.625% due 07/15/07 350,000 350,000
-----------
3,150,406
HOTELS & RESTAURANTS -- 2.73%
AFC Enterprises Inc. 10.25% due
05/15/07 450,000 474,750
Apple South Inc. 9.75% due
06/01/06 150,000 159,000
Felcor Suites Limited
Partnership, 7.625% due
10/01/07 250,000 252,685
Foodmaker Corporation 9.75% due
11/01/03 250,000 252,500
Hammon John Q. Hotels 8.875% due
02/15/04 250,000 255,313
HMH Properties Inc. 8.875% due
07/15/07 450,000 473,625
-----------
1,867,873
MACHINERY -- 2.01%
Axiohm Inc. 9.75% due 10/01/07 500,000 507,500
Bucyrus International Inc. 9.75%
due 09/15/07 350,000 353,500
Park Ohio Industries Inc. 9.25%
due 12/01/07 500,000 511,875
-----------
1,372,875
MEDICAL INSTRUMENTS -- 0.38%
Physician Sales & Service Inc.
8.50% due 10/01/07 250,000 256,875
METALS & MINING -- 2.52%
Kaiser Aluminum & Chemical
Corporation, 10.875% due
10/15/06 250,000 271,875
Oregon Steel Mills Inc. 11.00%
due 06/15/03 450,000 486,000
WCI Steel Inc. 10.00% due
12/01/04 700,000 717,500
Wheeling Pittsburgh Corporation
9.25% due 11/15/07 250,000 245,000
-----------
1,720,375
MISC. FINANCIAL SERVICES -- 0.30%
DVI Inc. 9.875% due 02/01/04 200,000 208,000
OIL SERVICES -- 0.47%
Pride Petroleum Services Inc.
9.375% due 05/01/07 300,000 322,500
PAGING SERVICES -- 0.01%
Pagemart Nationwide Inc. 875 8,750
PAPER & FOREST PRODUCTS -- 0.31%
Maxxam Group Inc. 11.25% due
08/01/03 200,000 212,000
PHARMACEUTICALS -- 0.81%
Pharmaceutical Fine Chemicals
9.75% due 11/15/07 550,000 556,875
PRINTING & PUBLISHING -- 0.55%
Von Hoffmann Press Inc. 10.375%
due 05/15/07 350,000 373,188
</TABLE>
126
<PAGE> 138
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
PUBLISHING -- 0.76%
American Lawyer Media Inc. 9.75%
due 12/15/07 $ 250,000 $ 253,750
Time Warner Inc. 7.75% due
06/15/05 250,000 265,000
-----------
518,750
REAL ESTATE -- 0.55%
Crown Castle International
Corporation, Zero Coupon due
11/15/07 600,000 378,000
RESTAURANTS -- 0.37%
Perkins Family Restaurants L P
10.125% due 12/15/07 250,000 253,125
RETAIL -- 1.53%
Ann Taylor Inc. 8.75% due
06/15/00 200,000 199,750
Cole National Group Inc. 8.625%
due 08/15/07 700,000 696,500
Michaels Stores Inc. 6.75% due
01/15/03 150,000 153,000
-----------
1,049,250
TELECOMMUNICATIONS -- 15.20%
American Communications Services
Inc., Zero Coupon due 11/01/05 800,000 640,000
American Communications Services
Inc. (Wts) (a) 11/01/05 300 28,200
Call-Net Telecommunications Zero
Coupon due 08/15/07 300,000 205,125
CCPR Services Inc. 10.00% due
02/01/07 650,000 648,375
Comcast Cellular Holdings Inc.
9.50% due 05/01/07 1,100,000 1,149,500
ICG Holdings Inc. Zero Coupon due
05/01/06 1,000,000 750,000
Intermedia Communications Inc.
8.50% due 01/15/08 400,000 400,000
Intermedia Communications Inc.
8.875% due 11/01/07 200,000 206,000
McLeodUSA Inc. Zero Coupon due
03/01/07 550,000 399,437
Metronet Communications Corp.
Zero Coupon due 11/01/07 500,000 305,625
Metronet Communications
Corporation, 12.00% due
08/15/07 100,000 115,500
Nextel Communications Inc. Zero
Coupon due 09/15/07 1,300,000 822,250
Nextel Communications Inc. Zero
Coupon due 10/31/07 500,000 304,375
Nextlink Communications Inc.
9.625% due 10/01/07 350,000 359,625
RCN Corporation Zero Coupon due
10/15/07 700,000 440,125
RCN Corporation 10.00% due
10/15/07 250,000 257,500
Rogers Cantel Inc 8.80% due
10/01/07 1,050,000 1,047,375
Sprint Spectrum L P Zero Coupon
due 08/15/06 800,000 626,000
Sprint Spectrum L P 11.00% due
08/15/06 400,000 449,000
Teleport Communications Group
Zero Coupon due 07/01/07 1,100,000 902,000
Winstar Equipment Corporation
12.50% due 03/15/04 300,000 333,750
-----------
10,389,762
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
TEXTILES -- 0.73%
Polymer Group Inc. 9.00% due
07/01/07 $ 500,000 $ 498,750
TRANSPORTATION -- 0.78%
Atlas Air Inc. 12.25% due
12/01/02 200,000 223,750
Eletson Holdings Inc. 9.25% due
11/15/03 300,000 306,375
-----------
530,125
UTILITIES -- 0.81%
Calenergy Inc. 7.63% due 10/15/07 100,000 100,491
Ferrellgas Partners L P 9.375%
due 06/15/06 300,000 317,250
Midland Funding Corporation
10.33% due 07/23/02 128,460 138,095
-----------
555,836
WASTE MANAGEMENT -- 0.16%
Allied Waste North America Inc.
10.25% due 12/01/06 100,000 109,375
-----------
TOTAL CORPORATE BONDS, CONVERTIBLE SECURITIES & COMMON
STOCKS
(IDENTIFIED COST $53,015,744) 54,827,424
PREFERRED STOCK -- 0.29%
TELECOMMUNICATIONS -- 0.29%
Intermedia Communications Inc. 7,500 197,813
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $187,500) 197,813
FOREIGN BONDS -- 9.83%
APPAREL & TEXTILES -- 0.38%
Reliance Industries Limited 8.25%
due 01/15/27 250,000 260,505
BASIC INDUSTRIES -- 1.14%
Cemex S A 12.75% due 07/15/06 650,000 780,000
BROADCASTING -- 1.12%
Grupo Televisa 11.875% due
05/15/06 250,000 273,125
Grupo Televisa S A 11.375% due
05/15/03 400,000 437,000
TV Azteca S A De C V 10.125% due
02/15/04 50,000 51,625
-----------
761,750
CABLE -- 0.48%
Kabelmedia Holding Zero Coupon
due 08/01/06 450,000 330,188
CHEMICALS -- 0.51%
PCI Chemical Canada Inc. 9.25%
due 10/15/07 350,000 349,562
CONTAINERS/PACKAGING -- 0.64%
Viacap SA De C V 11.375% due
05/15/07 400,000 435,000
</TABLE>
127
<PAGE> 139
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
<S> <C> <C>
ENERGY -- 0.80%
Petroleos Mexicanos 8.85% due
09/15/07 $ 250,000 $ 247,670
Petroleos Mexicanos 9.00% due
06/01/07 300,000 299,805
-----------
547,475
GOVERNMENT BOND -- 3.11%
Argentina Global 11.00% due
10/09/06 250,000 267,500
Argentina Rep 11.00% due 10/09/06 400,000 430,000
Mexico United Mexican States
9.875% due 01/15/07 1,000,000 1,042,937
Russian Federation 10.00% due
06/26/07 200,000 183,000
Turkiye Cumhuriyeti 10.00% due
09/19/07 200,000 203,740
-----------
2,127,177
PAPER & FOREST PRODUCTS -- 0.74%
Indah Kiat Finance Mauritius
Limited, 10.00% due 07/01/07 300,000 249,000
Pindo Deli Finance Mauritius
Limited, 10.75% due 10/01/07 300,000 257,250
-----------
506,250
TELECOMMUNICATIONS -- 0.24%
Hermes Europe Railtel B V 11.50%
due 08/15/07 150,000 166,125
TRANSPORTATION -- 0.67%
TFM S A Ce C V 10.25% due
06/15/07 150,000 154,125
Transportacion Maritima Mexica
10.00% due 11/15/06 300,000 301,500
-----------
455,625
-----------
TOTAL FOREIGN BONDS
(IDENTIFIED COST $6,616,114) 6,719,657
U.S. TREASURY BILLS -- 1.40%
U.S. Treasury Bill 5.14% due
11/12/98 1,000,000 955,235
-----------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $955,235) 955,235
U.S. TREASURY BONDS -- 1.93%
U.S. Treasury Bond 6.375% due
08/15/27 1,250,000 1,319,050
-----------
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $1,286,347) 1,319,050
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -------------------
U.S. TREASURY NOTES -- 1.50%
U.S. Treasury Note 6.125% due
08/15/07 $ 1,000,000 $ 1,027,440
-----------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $1,014,173) 1,027,440
REPURCHASE AGREEMENT -- 2.81%
State Street Bank & Trust
Repurchase Agreement, 4.00% due
01/02/98 Collateral: U.S.
Treasury Note $1,480,000, 8.5%
due 02/15/20 Value $1,962,389 1,920,000 1,920,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $1,920,000) 1,920,000
PREFERRED STOCK -- 0.38%
DRUGS & MEDICAL PRODUCTS -- 0.38%
Fresenius Med Care Capital Trust 250 262,500
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $263,906) 262,500
TOTAL INVESTMENTS
(IDENTIFIED COST $65,259,019) $ 67,229,119
OTHER ASSETS LESS LIABILITIES -- 1.66% 1,135,054
-----------
NET ASSETS 100% $ 68,364,173
</TABLE>
(a) Non-income producing
See accompanying notes to financial statements.
128
<PAGE> 140
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value..................... $519,535,033 $372,934,677 $2,660,580,860 $ 76,651,230 $67,229,119
Foreign currency at value
(cost -- $1,195,333).................... -- -- -- 1,180,695 --
Cash and other............................ 2,355 -- 2,681 1,773 4,762
Receivable for foreign currency sold
(net)................................... -- -- -- 278,958 --
Receivable for investments sold........... -- 615,787 11,472,739 32,218 --
Receivable for fund shares sold........... 527,276 386,464 2,047,976 76,139 141,919
Dividends receivable...................... 522,200 151,340 1,500,625 195,358 --
Interest receivable....................... 1,987 1,284 480,832 208 1,313,343
------------ ------------ -------------- ----------- -----------
Total assets.................... 520,588,851 374,089,552 2,676,085,713 78,416,579 68,689,143
------------ ------------ -------------- ----------- -----------
LIABILITIES:
Payable for investments purchased......... 2,217,487 8,240,323 -- 145,089 265,249
Payable for fund shares redeemed.......... 118,740 280,981 1,050,966 16,719 1,805
Investment advisory fee payable........... 340,314 240,626 1,631,223 56,052 33,714
Other accrued expenses.................... 108,991 61,801 471,478 51,216 24,202
------------ ------------ -------------- ----------- -----------
Total liabilities............... 2,785,532 8,823,731 3,153,667 269,076 324,970
------------ ------------ -------------- ----------- -----------
NET ASSETS:
Accumulated paid-in capital............... 352,782,620 272,255,462 1,654,285,279 72,660,041 65,025,120
Accumulated undistributed net investment
income (loss)........................... 5,906,167 1,050,774 26,677,477 956,929 --
Accumulated undistributed net realized
gain on investments..................... 21,595,909 25,152,378 183,248,731 2,905,112 1,368,953
Net unrealized appreciation on investments
and translation of foreign currencies
denominated amounts..................... 137,518,623 66,807,207 808,720,559 1,625,421 1,970,100
------------ ------------ -------------- ----------- -----------
Total net assets................ $517,803,319 $365,265,821 $2,672,932,046 $ 78,147,503 $68,364,173
============ ============ ============== =========== ===========
Fund shares outstanding................... 14,758,299 13,679,941 65,542,653 12,646,714 11,966,911
------------ ------------ -------------- ----------- -----------
Net asset value per share................. $35.09 $26.70 $40.78 $6.18 $5.71
INVESTMENTS AT COST....................... $382,016,410 $306,127,470 $1,851,860,301 $ 75,288,077 $65,259,019
</TABLE>
See accompanying notes to financial statements.
129
<PAGE> 141
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTERNATIONAL HIGH-YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................... $ 5,153,553* $ 1,568,790 $ 27,884,970 $ 1,546,385* $ 19,425
Interest................................ 4,277,419 1,274,117 16,687,323 253,012 4,582,071
----------- ----------- ------------ ---------- ----------
Total.............................. 9,430,972 2,842,907 44,572,293 1,799,397 4,601,496
----------- ----------- ------------ ---------- ----------
OPERATING EXPENSES:
Investment advisory fee................. 3,319,628 2,119,841 16,976,135 604,348 299,011
Custodian and fund accounting fees...... 70,887 63,388 322,226 195,690 43,536
Reports and notices to shareholders..... 79,238 48,521 397,514 15,698 9,496
Trustees' fees and expenses............. 17,419 14,608 50,155 11,492 11,038
Audit and legal fees.................... 29,081 23,998 88,497 18,332 17,963
Miscellaneous........................... 8,476 7,681 60,084 1,345 1,021
----------- ----------- ------------ ---------- ----------
Total operating expenses........... 3,524,729 2,278,037 17,894,611 846,905 382,065
----------- ----------- ------------ ---------- ----------
NET INVESTMENT INCOME............ 5,906,243 564,870 26,677,682 952,492 4,219,431
----------- ----------- ------------ ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NET:
Net realized gain on security
transactions.......................... 21,596,989 25,509,856 183,271,808 3,352,456 1,426,942
Net realized loss on foreign currency
transactions.......................... -- -- -- (258,495) --
Net realized loss on futures
transactions.......................... -- -- -- -- (40,672)
----------- ----------- ------------ ---------- ----------
Net realized gain on investments........ 21,596,989 25,509,856 183,271,808 3,093,961 1,386,270
Net change in unrealized gain (loss) on
investments and translation of foreign
currencies denominated amounts........ 66,581,351 68,857,605 286,998,102 (1,712,233) 876,263
----------- ----------- ------------ ---------- ----------
Net realized and unrealized gain
(loss) on investments............ 88,178,340 94,367,461 470,269,910 1,381,728 2,262,533
----------- ----------- ------------ ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ $94,084,583 $94,932,331 $496,947,592 $ 2,334,220 $6,481,964
=========== =========== ============ ========== ==========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Net of foreign taxes withheld of $45,150 and $219,707, respectively.
130
<PAGE> 142
(This page intentionally left blank.)
131
<PAGE> 143
ENTERPRISE ACCUMULATION TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY PORTFOLIO SMALL CAP PORTFOLIO
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income......................... $ 5,906,243 $ 4,530,803 $ 564,870 $ 2,416,759
Net realized gain on investments.............. 21,596,989 12,678,406 25,509,856 28,896,623
Net realized loss on futures.................. -- -- -- (900)
Net change in unrealized gain on
investments................................ 66,581,351 34,566,579 68,857,605 (12,857,423)
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations............................... 94,084,583 $ 51,775,788 94,932,331 18,455,059
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income......................... (4,530,879) (983,203) (1,934,367) (1,108,977)
Net realized gains............................ (12,619,248) (3,099,385) (29,120,607) (2,010,186)
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders.......................... (17,150,127) (4,082,588) (31,054,974) (3,119,163)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales....................... 194,805,120 141,947,982 125,153,914 53,086,228
Reinvestment of dividends and distributions... 17,150,127 4,082,588 31,054,974 3,119,163
Cost of shares redeemed....................... (85,993,316) (46,779,501) (47,524,243) (44,898,602)
------------ ------------ ------------ ------------
Net increase in net assets from fund share
transactions............................... 125,961,931 99,251,069 108,684,645 11,306,789
------------ ------------ ------------ ------------
Total increase in net assets............. 202,896,387 146,944,269 172,562,002 26,642,685
NET ASSETS:
Beginning of year............................. 314,906,932 167,962,663 192,703,819 166,061,134
------------ ------------ ------------ ------------
End of year................................... $517,803,319 $314,906,932 $365,265,821 $192,703,819
============ ============ ============ ============
SHARES ISSUED AND REDEEMED:
Issued........................................ 6,024,088 5,377,143 4,898,620 2,712,554
Issued in reinvestment of dividends and
distributions.............................. 488,747 141,462 1,163,108 154,261
Redeemed...................................... (2,666,560) (1,801,187) (1,911,458) (2,320,780)
------------ ------------ ------------ ------------
Net increase............................... 3,846,275 3,717,418 4,150,270 546,035
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
132
<PAGE> 144
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH
MANAGED PORTFOLIO PORTFOLIO HIGH-YIELD BOND PORTFOLIO
--------------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996 1997 1996
-------------- -------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 26,677,682 $ 34,357,948 $ 952,492 $ 469,448 $ 4,219,431 $ 2,054,070
183,271,808 86,738,070 3,093,961 1,830,273 1,426,942 364,910
-- -- -- -- (40,672) (22,678)
286,998,102 213,973,719 (1,712,233) 2,175,265 876,263 789,178
-------------- -------------- ----------- ----------- ----------- -----------
496,947,592 335,069,737 2,334,220 4,474,986 6,481,964 3,185,480
-------------- -------------- ----------- ----------- ----------- -----------
(34,358,125) (3,366,114) (469,566) -- (4,578,453) (2,054,070)
(86,729,089) (15,402,221) (1,839,878) (190,139) -- (33,884)
-------------- -------------- ----------- ----------- ----------- -----------
(121,087,214) (18,768,335) (2,309,444) (190,139) (4,578,453) (2,087,954)
-------------- -------------- ----------- ----------- ----------- -----------
764,890,598 602,776,605 44,114,615 36,234,262 37,450,856 22,145,776
121,087,214 18,768,335 2,309,444 190,139 4,578,453 2,087,926
(524,249,625) (267,220,838) (21,069,633) (6,539,162) (9,979,756) (6,143,188)
-------------- -------------- ----------- ----------- ----------- -----------
361,728,187 354,324,102 25,354,426 29,885,239 32,049,553 18,090,514
-------------- -------------- ----------- ----------- ----------- -----------
737,588,565 670,625,504 25,379,202 34,170,086 33,953,064 19,188,040
1,935,343,481 1,264,717,977 52,768,301 18,598,215 34,411,109 15,223,069
-------------- -------------- ----------- ----------- ----------- -----------
$2,672,932,046 $1,935,343,481 $ 78,147,503 $ 52,768,301 $ 68,364,173 $ 34,411,109
============== ============== =========== =========== =========== ===========
20,029,862 19,459,858 6,817,722 6,375,789 6,681,479 4,149,703
2,969,279 547,022 373,696 32,357 813,628 389,665
(13,856,866) (8,684,392) (3,259,958) (1,143,764) (1,778,183) (1,154,032)
-------------- -------------- ----------- ----------- ----------- -----------
9,142,275 11,322,488 3,931,460 5,264,382 5,716,924 3,385,336
============== ============== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
133
<PAGE> 145
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...................... $ 28.86 $ 23.35 $ 18.14 $ 17.95 $ 17.23
-------- -------- ------- ------- -------
Income from investment operations:
Net investment income................................. 0.30 0.37 0.33 0.28 0.18
Net realized and unrealized gain on investments....... 7.13 5.52 6.38 0.41 1.13
-------- -------- ------- ------- -------
Total from investment operations.............. 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............................ $ 35.09 $ 28.86 $ 23.35 $ 18.14 $ 17.95
======== ======== ======= ======= =======
Total return.................................. 25.76% 25.22% 38.44% 3.87% 7.85%
-------- -------- ------- ------- -------
Net assets, end of year (000)........................... $517,803 $314,907 $167,963 $88,583 $66,172
-------- -------- ------- ------- -------
Ratio of net operating expenses to average net assets... 0.84% 0.81% 0.69% 0.67% 0.72%
-------- -------- ------- ------- -------
Ratio of net operating expenses (excluding waivers) to
average net assets.................................... 0.84% 0.81% 0.72% 0.69% 0.72%
-------- -------- ------- ------- -------
Ratio of net investment income to average net assets.... 1.42% 1.94% 1.94% 1.81% 1.47%
-------- -------- ------- ------- -------
Ratio of net investment income (excluding waivers) to
average net assets.................................... 1.42% 1.94% 1.91% 1.79% 1.47%
-------- -------- ------- ------- -------
Portfolio turnover...................................... 17% 30% 29% 38% 15%
-------- -------- ------- ------- -------
Average commission per share (a)........................ $ 0.0577 $ 0.0567
-------- --------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
134
<PAGE> 146
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year..................... $ 20.22 $ 18.48 $ 17.56 $ 18.62 $ 16.72
-------- -------- -------- -------- -------
Income from investment operations:
Net investment income (b)............................ 0.05 0.25 0.32 0.19 0.10
Net realized and unrealized gain (loss) on
investments....................................... 8.91 1.82 1.75 (0.16) 2.98
-------- -------- -------- -------- -------
Total from investment operations............. 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........................... $ 26.70 $ 20.22 $ 18.48 $ 17.56 $ 18.62
======== ======== ======== ======== =======
Total return................................. 44.32% 11.21% 12.28% .02% 19.51%
-------- -------- -------- -------- -------
Net assets, end of year (000).......................... $365,266 $192,704 $166,061 $144,880 $105,635
-------- -------- -------- -------- -------
Ratio of net operating expenses to average net
assets............................................... 0.86% 0.84% 0.69% 0.66% 0.74%
-------- -------- -------- -------- -------
Ratio of net operating expenses (excluding waivers) to
average net assets................................... 0.86% 0.84% 0.72% 0.67% 0.74%
-------- -------- -------- -------- -------
Ratio of net investment income to average net assets... 0.21% 1.35% 1.86% 1.30% 1.06%
-------- -------- -------- -------- -------
Ratio of net investment income (excluding waivers) to
average net assets................................... 0.21% 1.35% 1.83% 1.29% 1.06%
-------- -------- -------- -------- -------
Portfolio turnover..................................... 58% 137% 70% 58% 70%
-------- -------- -------- -------- -------
Average commission rate per share (a).................. $ 0.0456 $ 0.0480
-------- --------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
(b) For 1997, this calculation was based on average monthly shares outstanding.
135
<PAGE> 147
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------
1997 1996 1995 1994 1993
---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................. $ 34.31 $ 28.06 $ 20.82 $ 21.35 $ 20.11
---------- ---------- -------- -------- --------
Income from investment operations:
Net investment income............................ 0.35 0.59 0.40 0.40 0.46
Net realized and unrealized gain
(loss) on investments......................... 8.06 5.99 8.97 0.15 1.55
---------- ---------- -------- -------- --------
Total from investment operations......... 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....................... $ 40.78 $ 34.31 $ 28.06 $ 20.82 $ 21.35
========== ========== ======== ======== ========
Total return............................. 24.50% 23.47% 46.89% 2.57% 10.39%
---------- ---------- -------- -------- --------
Net assets, end of year (000)...................... $2,672,932 $1,935,343 $1,264,718 $689,252 $525,163
---------- ---------- -------- -------- --------
Ratio of net operating expenses to average net
assets........................................... 0.76% 0.74% 0.67% 0.64% 0.66%
---------- ---------- -------- -------- --------
Ratio of net operating expenses (excluding waivers)
to average net assets............................ 0.76% 0.74% 0.67% 0.64% 0.66%
---------- ---------- -------- -------- --------
Ratio of net investment income to average net
assets........................................... 1.14% 2.16% 1.80% 2.23% 3.21%
---------- ---------- -------- -------- --------
Ratio of net investment income (excluding waivers)
to average net assets............................ 1.14% 2.16% 1.80% 2.23% 3.21%
---------- ---------- -------- -------- --------
Portfolio turnover................................. 32% 29% 31% 33% 21%
---------- ---------- -------- -------- --------
Average commission per share (a)................... $ 0.0574 $ 0.0531
---------- ----------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
136
<PAGE> 148
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31, PERIOD OF
------------------------------- NOVEMBER 18, 1994-
1997 1996 1995 DECEMBER 31, 1994
------- ------- ------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year......................... $ 6.05 $ 5.39 $ 4.96 $ 5.00
------ ------- ------- ------
Income from investment operations:
Net investment income................................. 0.06 0.05 0.04 --
Net realized and unrealized gain (loss) on
investments......................................... 0.26 0.63 0.67 (0.04)
------ ------- ------- ------
Total from investment operations................. 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............................... $ 6.18 $ 6.05 $ 5.39 $ 4.96
====== ======= ======= ======
Total return..................................... 5.26% 12.65% 14.64% (0.80)%(c)
------ ------- ------- ------
Net assets, end of year (000).............................. $78,148 $52,768 $18,598 $3,247
------ ------- ------- ------
Ratio of net operating expenses to average net assets...... 1.19% 1.38% 1.55% 1.55% (b)
------ ------- ------- ------
Ratio of net operating expenses (excluding waivers) to
average net assets....................................... 1.19% 1.38% 2.21% 8.85% (b)
------ ------- ------- ------
Ratio of net investment income to average net assets....... 1.34% 1.32% 1.17% 0.80% (b)
------ ------- ------- ------
Ratio of net investment income (excluding waivers) to
average net assets....................................... 1.34% 1.32% 0.51% (6.34)%(b)
------ ------- ------- ------
Portfolio turnover......................................... 28% 21% 27% 0%
------ ------- ------- ------
Average commission per share (a)........................... $0.0257 $0.0224
------ -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(a) Disclosure not applicable to periods prior to 1996. Represents average
commission rate per share charged to the fund on purchases and sales of
equity investments on which commissions were charged during the period.
(b) Annualized.
(c) Not annualized.
137
<PAGE> 149
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31, PERIOD OF
----------------------------------------- NOVEMBER 18, 1994-
1997 1996 1995 DECEMBER 31, 1994
----------------- ------- ------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.................. $ 5.51 $ 5.31 $ 4.98 $ 5.00
------ ------- ------- ------
Income from investment operations:
Net investment income.......................... 0.51 0.45 0.45 0.04
Net realized and unrealized gain (loss) on
investments.................................. 0.20 0.21 0.35 (0.01)
------ ------- ------- ------
Total from investment operations.......... 0.71 0.66 0.80 0.03
------ ------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net investment
income....................................... (0.51) (0.45) (0.45) (0.05)
Distribution to shareholders from net capital
gains........................................ -- (0.01) (0.02) --
------ ------- ------- ------
Total dividends and distributions......... (0.51) (0.46) (0.47) (0.05)
------ ------- ------- ------
Net asset value, end of year........................ $ 5.71 $ 5.51 $ 5.31 $ 4.98
====== ======= ======= ======
Total return.............................. 13.38% 12.93% 16.59% 0.50%(c)
------ ------- ------- ------
Net assets, end of year (000)....................... $68,364 $34,411 $15,223 $1,421
------ ------- ------- ------
Ratio of net operating expenses to average net
assets............................................ 0.77% 0.85% 0.85% 0.85%(b)
------ ------- ------- ------
Ratio of net operating expenses (excluding waivers)
to average net assets............................. 0.77% 0.94% 1.59% 7.80%(b)
------ ------- ------- ------
Ratio of net investment income to average net
assets............................................ 8.47% 8.57% 8.51% 7.84%(b)
------ ------- ------- ------
Ratio of net investment income (excluding waivers)
to average net assets............................. 8.47% 8.48% 7.77% 0.80%(b)
------ ------- ------- ------
Portfolio turnover.................................. 175% 175% 115% 0%
------ ------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(b) Annualized.
(c) Not annualized.
138
<PAGE> 150
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
1. ORGANIZATION OF THE TRUST
Enterprise Accumulation Trust (the "Trust") was organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Trust is
authorized to issue an unlimited number of five classes of shares of beneficial
interest at $.01 par value: the Equity Portfolio, the Small Cap Portfolio, the
Managed Portfolio, the International Growth Portfolio and the High-Yield Bond
Portfolio. The Trust serves as an investment vehicle for MONYMaster, a flexible
payment variable annuity policy, and MONY Equity Master, a flexible premium
variable universal life insurance policy, 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. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments -- The Equity, Small Cap, Managed, International
Growth and High-Yield Bond Portfolios: Investment securities, other than debt
securities, listed on either a national or foreign securities exchange or traded
in the over-the-counter National Market System are valued each business day at
the last reported sales price; if there are no such reported sales, the
securities are valued at their last quoted bid price. Other securities traded
over-the-counter and not part of the National Market System are valued at the
last quoted bid price. Debt securities (other than certain short-term
obligations) are valued each business day by an independent pricing service
approved by the Board of Trustees. Short-term debt securities having a remaining
maturity of sixty days or less are valued at amortized cost, which approximates
market value. Any securities for which market quotations are not readily
available are valued at their fair value as determined in good faith by the
Board of Trustees.
Special Valuation Risk -- The high-yield securities in which the High-Yield
Bond Portfolio may invest may be considered speculative in regard to the
issuer's continuing ability to meet principal and interest payments. The value
of the lower rated securities in which the High-Yield Bond Portfolio may invest
will be affected by the credit worthiness of individual issuers, general
economic and specific industry conditions, and will fluctuate inversely with
changes in interest rates. In addition, the secondary trading market for lower
quality bonds may be less active and less liquid than the trading market for
higher quality bonds.
Repurchase Agreements -- Each Portfolio may acquire securities subject to
repurchase agreements. Under a typical repurchase agreement, a Portfolio would
acquire a debt security for a relatively short period (usually for one day and
not for more than one week) subject to an obligation of the seller to repurchase
and of the Portfolio to resell the debt security at an agreed-upon higher price,
thereby establishing a fixed investment return during the Portfolio's holding
period. Under each repurchase agreement, the 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
December 31, 1997.
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.
Security Transactions and Other Income -- Security transactions are
accounted for on the trade date. In determining the gain or loss from the sale
of securities, the cost of securities sold has been determined on the basis of
identified cost. Dividend
139
<PAGE> 151
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
income is recorded on the ex-dividend date and interest income is accrued as
earned. Discounts or premiums on debt securities purchased are accreted or
amortized to interest income over lives of the respective securities.
Expenses -- Each portfolio bears expenses incurred specifically on its
behalf as well as a portion of the common expenses of the Trust.
Federal Income Taxes -- It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to
shareholders; accordingly, no Federal income tax provision is required.
Use of Estimates in Preparation of Financial 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 Cap, Managed and
International Growth Portfolios: Dividends and distributions to shareholders
from net investment income and net realized capital gains, if any, are declared
and paid at least annually. The High-Yield Bond Portfolio: Dividends from net
investment income are declared daily and paid monthly. Distributions from net
realized capital gains, if any, are declared and paid at least annually.
3. FORWARD CURRENCY CONTRACTS
As part of its investment program, the International Growth Portfolio
utilizes forward currency exchange contracts to manage exposure to currency
fluctuations and hedge against adverse changes in connection with purchases and
sales of securities. The Portfolio enters into forward contracts only for
hedging purposes. At December 31, 1997, the International Growth Portfolio had
entered into various forward currency exchange contracts under which it is
obligated to exchange currencies at specified future dates. Risks arise from the
possible inability of counterparties to meet the terms of their contracts and
from movements in currency values. Outstanding contracts at December 31, 1997
are as follows:
<TABLE>
<CAPTION>
CONTRACT TO NET UNREALIZED
SETTLEMENT ----------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
- ---------- --------------- --------------- --------------
<S> <C> <C> <C>
1/20/98 USD 1,627,054 AUD 2,200,000 $ 192,566
1/20/98 USD 1,749,351 BEL 64,000,000 19,992
1/20/98 CAD 1,800,000 USD 1,329,394 (68,908)
1/20/98 CHF 4,300,000 USD 2,981,556 (31,578)
1/20/98 USD 968,523 CHF 1,400,000 8,065
1/20/98 USD 395,793 DEM 700,000 6,218
1/20/98 DKK 4,700,000 USD 696,255 (9,603)
1/20/98 FRF 9,300,000 USD 1,522,313 24,714
1/20/98 USD 5,061,028 GBP 3,030,000 89,087
1/20/98 USD 1,183,037 HKD 9,200,000 (3,226)
1/20/98 HKD 3,000,000 USD 383,853 2,972
1/20/98 USD 402,825 ITL 730,000,000 (9,762)
1/20/98 JPY 583,000,000 USD 4,957,989 (480,007)
1/20/98 USD 3,128,922 JPY 374,000,000 256,254
1/20/98 USD 675,042 MYR 1,800,000 211,874
1/20/98 USD 577,599 NLG 1,150,000 9,726
1/20/98 NLG 2,550,000 USD 1,272,487 (13,290)
1/20/98 NOK 3,000,000 USD 427,137 (20,466)
1/20/98 SEK 14,500,000 USD 1,872,538 (45,287)
1/20/98 USD 1,317,472 SEK 10,200,000 32,095
1/20/98 USD 817,439 SGD 1,200,000 107,522
---------
$ 278,958
=========
</TABLE>
140
<PAGE> 152
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment advisory fee is payable monthly to Enterprise Capital
Management, Inc. ("Enterprise Capital"), a wholly-owned subsidiary of MONY, and
is computed as a percentage of each Portfolio's net assets as of the close of
business each day and is as follows: for each of the Equity, Small Cap, and
Managed Portfolios, .80% for the first $400 million, .75% for the next $400
million, and .70% for net assets over $800 million, .85% for the International
Growth Portfolio and .60% for the High-Yield Bond Portfolio.
Enterprise Capital has agreed to reimburse the Portfolios for expenses
incurred in excess of a percentage of average net assets. The percentages are as
follows: Equity -- .95%, Small Cap -- .95%, Managed -- .95%, International
Growth Portfolio -- 1.55% and High-Yield Bond Portfolio -- .85%.
Enterprise Capital has entered into sub-advisory agreements with various
investment advisers as Portfolio Managers for the Trust. A portion of the
management fee received by Enterprise Capital is paid to the Portfolio Manager.
5. PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1997, purchases and sales proceeds of
investment securities, other than short-term securities, were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
OBLIGATIONS STOCKS AND BONDS
------------------------ ----------------------------
PORTFOLIO PURCHASES SALES PURCHASES SALES
- -------------------------------------------------------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Equity.................................................. -- -- $122,604,162 $ 56,389,528
Small Cap............................................... -- -- 200,540,520 139,316,877
Managed................................................. -- -- 788,461,611 9,275,527
International Growth.................................... -- -- 43,344,114 18,394,338
High-Yield Bond......................................... $3,803,637 $1,524,063 107,190,504 80,036,195
</TABLE>
6. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS AND DISTRIBUTIONS
At December 31, 1997, the composition of unrealized appreciation
(depreciation) of investment securities and the cost of investment for Federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
NET APPRECIATION
PORTFOLIO TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------------------------- -------------- ------------ ------------ ----------------
<S> <C> <C> <C> <C>
Equity............................................... $ 382,017,441 $139,174,894 $ (1,656,271) $137,518,623
Small Cap............................................ 306,663,418 76,677,207 (9,870,000) 66,807,207
Managed.............................................. 1,831,881,883 830,588,366 (21,867,808) 808,720,558
International Growth................................. 75,633,249 10,086,803 (8,738,048) 1,348,755
High-Yield Bond...................................... 65,270,632 2,238,213 (268,113) 1,970,100
</TABLE>
The capital gains dividend distribution paid to shareholders, taken in
additional shares, is as follows:
<TABLE>
<CAPTION>
28% CAPITAL GAINS
-----------------
<S> <C>
Equity Portfolio........................................................................... $10,973,315
Small Cap Portfolio........................................................................ 15,475,183
Managed Portfolio.......................................................................... 75,381,463
International Growth Portfolio............................................................. 650,328
High-Yield Bond............................................................................ 106,706
</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.
141
<PAGE> 153
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Enterprise Accumulation Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of each of the portfolios of Enterprise
Accumulation Trust (Equity, Small Cap, Managed, International Growth, and
High-Yield Bond Portfolios) as of December 31, 1997 and the related statements
of operations for the year then ended, and the statements of changes in net
assets for each of the two years in the period then ended, and the financial
highlights for each of the four years (or periods) in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The financial
highlights for the year ended December 31, 1993 were audited by other auditors,
whose report dated February 18, 1994, expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Enterprise Accumulation Trust (Equity, Small Cap, Managed, International Growth,
and High-Yield Bond Portfolios) as of December 31, 1997, the results of their
operations for the year then ended, and the changes in their net assets for each
of the two years in the period then ended, and their financial highlights for
each of the four years (or periods) in the period then ended in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Atlanta, Georgia
February 19, 1998
142
<PAGE> 154
TRUSTEES AND PRINCIPAL OFFICERS
<TABLE>
<S> <C>
Victor Ugolyn Trustee, Chairman, President and
Chief Executive Officer
Arthur T. Dietz Trustee
Samuel J. Foti Trustee
Arthur Howell Trustee
William A. Mitchell, Jr. Trustee
Lonnie H. Pope Trustee
Michael I. Roth Trustee
Phillip G. Goff Vice President
Catherine R. McClellan Secretary
Herbert M. Williamson Treasurer
</TABLE>
INVESTMENT ADVISER
Enterprise Capital Management, Inc.
Atlanta Financial Center
3343 Peachtree Road, Suite 450
Atlanta, Georgia 30326
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P. O. Box 1713
Boston, Massachusetts 02105
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
1100 Campanile Building
1155 Peachtree Street
Atlanta, Georgia 30309
This report is authorized for distribution only to shareholders and to
others who have received a copy of this Trust's prospectus.
143
<PAGE> 155
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144
<PAGE> 156
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) GE 98-063
<PAGE> 157
LOGO
The Mutual Life Insurance Company of New York
Administrative Offices
1740 Broadway, New York, NY 10019
ADDRESS CORRECTION REQUESTED
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BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 8048
NEW YORK, NEW YORK
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Form No. 13634SL (2/98)
