<PAGE> 1
MONY SERIES FUND, INC.,
ENTERPRISE ACCUMULATION TRUST
AND
OCC ACCUMULATION TRUST
1998 ANNUAL REPORT
PRODUCTS:
MONY CUSTOM MASTER
MONYMASTER
MONY CUSTOM EQUITY MASTER
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
Mony Custom Master, MONYMaster, Mony Custom Equity Master, or MONYEquity Master
performance and a current MONY Custom Master, MONYMaster, MONY Custom Equity
Master or MONYEquity Master prospectus which contains more complete information
of charges and expenses.
The information provided on the ValueMaster, 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 financial crisis which threatened world economics and markets during
the summer and early fall has eased. Central banks around the world lowered
rates and increased liquidity helping to avert the impending financial meltdown.
The massive flight to quality, which was both the result of the turmoil and the
cause of some of it, has also abated. Markets have stabilized in many countries,
and have recovered sharply in others, notably the U.S. However, the world
financial system continues to be fragile and subject to shocks as the recent
events in Brazil have demonstrated.
Economic growth is slowing on a worldwide basis. The international market
reaction to Brazil has stabilized, but their economic problems remain and
significant disappointments (followed by potential unrest in many other South
American economies) are possible. Japan is still experiencing weakness and
Russia continues to have major problems. The U.S. remains one of the stronger
and faster growing economies, and Europe is stable, but slower growth is likely
in both in 1999. Inflation remains low with excess capacity in almost everything
and commodity prices are weak, especially oil and copper.
In the U.S., the consumer, buoyed by rising real wages, a good job outlook
and the recovering stock market, exhibits rising confidence and a propensity to
spend. Manufacturing, on the other hand, suffers from a lack of pricing power,
slower revenues, rising wages and excess capacity. While the consumer is
spending, generally discounts and sales are required to move merchandise.
Spending onY2K remedies will be increasing as the year progresses. All of this
puts pressure on corporate earnings, which is the problem that the market was
worrying about before the financial crisis began. Earnings are expected to rise
about 5 percent for the popular averages, which are influenced by technology and
growth stocks, but overall corporate profits may not be as strong.
On the positive side, interest rates should continue to be low and could
decline further. Slower growth, deflationary pressures around the world, a
declining Federal deficit and an accommodative or neutral Federal Reserve should
keep downward pressure on rates. The question for stock market valuation in 1999
will be whether what the market loses from lower earnings is offset by what it
gains from lower rates. As of now, the answer seems to be positive. As long as
rates stay low and earnings are stable, the flow of money into equity funds
should continue. Valuations are high, though, and parts of the world are still
fragile and after four very strong years, it would be understandable if the
market paused for breath.
Sincerely,
Levine signature
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 (Strategist and MONYEquity Master)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 5
Statements of Operations as of December 31,
1998............................................... 7
Statements of Changes in Net Assets............... 9
Notes to Financial Statements..................... 12
Report of Independent Accountants................. 15
MONY America (MONY Custom Equity Master)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 16
Statements of Operations as of December 31,
1998............................................... 18
Statements of Changes in Net Assets............... 20
Notes to Financial Statements..................... 22
Report of Independent Accountants................. 25
MONY (Strategist and MONYEquity Master)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 26
Statements of Operations as of December 31,
1998............................................... 28
Statements of Changes in Net Assets............... 30
Notes to Financial Statements..................... 33
Report of Independent Accountants................. 36
VARIABLE ACCOUNT S
MONY America (MONYVestor)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 37
Statements of Operations as of December 31,
1998............................................... 38
Statements of Changes in Net Assets............... 39
Notes to Financial Statements..................... 40
Report of Independent Accountants................. 42
MONY (MONYVestor)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 43
Statements of Operations as of December 31,
1998............................................... 44
Statements of Changes in Net Assets............... 45
Notes to Financial Statements..................... 46
Report of Independent Accountants................. 48
VARIABLE ACCOUNT A
MONY America (MONYMaster I&II and ValueMaster)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 49
Statements of Operations as of December 31,
1998............................................... 52
Statements of Changes in Net Assets............... 55
Notes to Financial Statements..................... 59
Report of Independent Accountants................. 63
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
MONY America (MONY Custom Master)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 64
Statements of Operations as of December 31,
1998............................................... 66
Statements of Changes in Net Assets............... 68
Notes to Financial Statements..................... 70
Report of Independent Accountants................. 73
MONY (MONYMaster I&II and ValueMaster)
Statements of Assets and Liabilities as of
December 31, 1998.................................. 74
Statements of Operations as of December 31,
1998............................................... 77
Statements of Changes in Net Assets............... 80
Notes to Financial Statements..................... 84
Report of Independent Accountants................. 87
MONY SERIES FUND, INC.
Equity Growth Portfolio........................... 88
Equity Income Portfolio........................... 89
Intermediate Term Bond Portfolio.................. 90
Long Term Bond Portfolio.......................... 92
Diversified Portfolio............................. 94
Government Securities Portfolio................... 95
Money Market Portfolio............................ 96
Equity Growth Portfolio of Investments............ 97
Equity Income Portfolio of Investments............ 99
Intermediate Term Bond Portfolio of Investments... 101
Long Term Bond Portfolio of Investments........... 103
Diversified Portfolio of Investments.............. 105
Government Securities Portfolio of Investments.... 107
Money Market Portfolio of Investments............. 108
Statements of Assets and Liabilities as of
December 31, 1998.................................. 110
Statements of Operations as of December 31,
1998............................................... 111
Statements of Changes in Net Assets............... 112
NOTES TO FINANCIAL STATEMENTS..................... 114
FINANCIAL HIGHLIGHTS.............................. 117
Report of Independent Accountants................. 124
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
ENTERPRISE ACCUMULATION TRUST
Growth Portfolio.................................. 127
Growth and Income Portfolio....................... 130
Equity Portfolio.................................. 133
Equity Income Portfolio........................... 136
Capital Appreciation Portfolio.................... 139
Small Company Growth Portfolio.................... 142
Small Company Value Portfolio..................... 145
International Growth Portfolio.................... 150
High Yield Bond Portfolio......................... 155
Managed Portfolio................................. 162
Statements of Assets and Liabilities as of
December 31, 1998.................................. 166
Statements of Operations as of December 31,
1998............................................... 168
Statements of Changes in Net Assets............... 170
FINANCIAL HIGHLIGHTS.............................. 173
NOTES TO FINANCIAL STATEMENTS..................... 180
Report of Independent Accountants................. 184
OCC ACCUMULATION TRUST
Equity Portfolio.................................. 188
Small Cap Portfolio............................... 191
Managed Portfolio................................. 194
U.S. Government Income Portfolio.................. 197
Equity Portfolio Schedule of Investments.......... 199
Small Cap Portfolio Schedule of Investments....... 200
Managed Portfolio Schedule of Investments......... 201
U.S. Government Income Portfolio Schedule of
Investments........................................ 202
Statements of Assets and Liabilities as of
December 31, 1998.................................. 204
Statements of Operations as of December 31,
1998............................................... 205
Statements of Changes in Net Assets............... 206
NOTES TO FINANCIAL STATEMENTS..................... 207
FINANCIAL HIGHLIGHTS.............................. 210
Report of Independent Accountants................. 211
</TABLE>
4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
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)...... $ 682,834 $ 595,988 $ 140,141 $ 61,136 $1,014,298 $ 69,117
========= ========= ========= ========= ========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2).............................. $ 961,335 $ 759,055 $ 150,496 $ 70,834 $1,234,825 $ 69,117
Amount due from MONY Series Fund,
Inc............................. 7 38 0 0 157 21
Amount due from MONY America...... 10 10 0 0 27 0
--------- --------- --------- --------- ---------- ---------
Total assets............ 961,352 759,103 150,496 70,834 1,235,009 69,138
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY Series Fund,
Inc............................. 10 10 0 0 27 0
Amount due to MONY America........ 7 38 0 0 157 21
--------- --------- --------- --------- ---------- ---------
Total liabilities....... 17 48 0 0 184 21
--------- --------- --------- --------- ---------- ---------
Net assets........................ $ 961,335 $ 759,055 $ 150,496 $ 70,834 $1,234,825 $ 69,117
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net payments... $ 532,846 $ 452,429 $ 186,834 $ 110,895 $ 870,386 $ 202,760
Cost of insurance withdrawals
(Note 3)..................... (407,376) (523,633) (212,856) (165,781) (973,530) (214,120)
Undistributed net investment
income....................... 301,309 441,681 171,031 103,589 787,844 80,477
Accumulated net realized gain
(loss) on investments........ 256,055 225,511 (4,868) 12,433 329,598 0
Unrealized appreciation of
investments.................. 278,501 163,067 10,355 9,698 220,527 0
--------- --------- --------- --------- ---------- ---------
Net assets........................ $ 961,335 $ 759,055 $ 150,496 $ 70,834 $1,234,825 $ 69,117
========= ========= ========= ========= ========== =========
Number of units outstanding* ..... 14,007 11,808 5,977 2,112 25,565 3,678
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding* ................... $ 68.63 $ 64.28 $ 25.18 $ 33.55 $ 48.30 $ 18.79
========= ========= ========= ========= ========== =========
</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, 1998
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................... $641,572 $1,472,004 $697,449 $5,330,496
======== ========== ======== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $ 0 $ 0 $ 0 $ 0
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 652,021 1,555,776 719,374 5,330,496
Amount due from Enterprise Accumulation Trust... 0 0 0 0
Amount due from MONY America.................... 7,498 164 11 12,554
Amount due from MONY Series Fund, Inc........... 1,617 236 55 2,757
-------- ---------- -------- ----------
Total assets............................ 661,136 1,556,176 719,440 5,345,807
-------- ---------- -------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 0 0 0 0
Amount due to MONY America...................... 1,617 236 55 2,757
Amount due to MONY Series Fund, Inc............. 7,498 164 11 12,554
-------- ---------- -------- ----------
Total liabilities....................... 9,115 400 66 15,311
-------- ---------- -------- ----------
Net assets...................................... $652,021 $1,555,776 $719,374 $5,330,496
======== ========== ======== ==========
Net assets consist of:
Contractholders' net payments................. $705,932 $1,622,461 $816,253 $5,888,281
Cost of insurance withdrawals (Note 3)........ (88,135) (304,221) (164,506) (923,486)
Undistributed net investment income........... 18,034 91,808 28,936 365,701
Accumulated net realized gain on
investments................................. 5,741 61,956 16,766 0
Unrealized appreciation (depreciation) of
investments................................. 10,449 83,772 21,925 0
-------- ---------- -------- ----------
Net assets...................................... $652,021 $1,555,776 $719,374 $5,330,496
======== ========== ======== ==========
Number of units outstanding* ................... 51,260 104,745 57,728 449,645
-------- ---------- -------- ----------
Net asset value per unit outstanding* .......... $ 12.72 $ 14.85 $ 12.46 $ 11.85
======== ========== ======== ==========
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).................... $29,267,109 $17,465,483 $ 92,486,951 $7,465,956 $3,681,980
=========== =========== ============ ========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)...................... $30,077,398 $17,326,567 $ 91,853,472 $7,618,801 $3,535,771
Investments in MONY Series Fund, Inc. at net
asset value (Note 2).......................... 0 0 0 0 0
Amount due from Enterprise Accumulation Trust... 13,686 5,946 36,505 2,166 1,550
Amount due from MONY America.................... 5,988 3,942 7,552 637 586
Amount due from MONY Series Fund, Inc........... 0 0 0 0 0
----------- ----------- ------------ ---------- ----------
Total assets............................ 30,097,072 17,336,455 91,897,529 7,621,604 3,537,907
----------- ----------- ------------ ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust..... 5,988 3,942 7,552 637 586
Amount due to MONY America...................... 13,686 5,946 36,505 2,166 1,550
Amount due to MONY Series Fund, Inc............. 0 0 0 0 0
----------- ----------- ------------ ---------- ----------
Total liabilities....................... 19,674 9,888 44,057 2,803 2,136
----------- ----------- ------------ ---------- ----------
Net assets...................................... $30,077,398 $17,326,567 $ 91,853,472 $7,618,801 $3,535,771
=========== =========== ============ ========== ==========
Net assets consist of:
Contractholders' net payments................. $31,708,512 $17,792,682 $ 94,994,106 $8,279,552 $3,923,901
Cost of insurance withdrawals (Note 3)........ (6,356,307) (3,239,637) (19,694,177) (1,552,052) (698,846)
Undistributed net investment income........... 1,671,285 1,649,083 9,179,832 425,563 404,804
Accumulated net realized gain on
investments................................. 2,243,619 1,263,355 8,007,190 312,893 52,121
Unrealized appreciation (depreciation) of
investments................................. 810,289 (138,916) (633,479) 152,845 (146,209)
----------- ----------- ------------ ---------- ----------
Net assets...................................... $30,077,398 $17,326,567 $ 91,853,472 $7,618,801 $3,535,771
=========== =========== ============ ========== ==========
Number of units outstanding* ................... 1,373,480 874,371 4,216,748 475,982 245,156
----------- ----------- ------------ ---------- ----------
Net asset value per unit outstanding* .......... $ 21.90 $ 19.82 $ 21.78 $ 16.01 $ 14.42
=========== =========== ============ ========== ==========
</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, 1998
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.................... $138,443 $118,315 $ 8,132 $ 3,912 $ 261,166 $ 3,735
Mortality and expense risk charges
(Note 3)......................... (5,155) (4,392) (935) (418) (6,828) (434)
-------- -------- -------- -------- --------- --------
Net investment income.............. 133,288 113,923 7,197 3,494 254,338 3,301
-------- -------- -------- -------- --------- --------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.............. 83,899 70,294 26,174 11,980 244,465 17,192
Cost of shares sold.............. (52,145) (45,970) (25,047) (10,356) (171,058) (17,192)
-------- -------- -------- -------- --------- --------
Net realized gain on investments... 31,754 24,324 1,127 1,624 73,407 0
Net increase (decrease) in
unrealized appreciation of
investments...................... 26,614 (55,179) 1,982 1,198 (84,041) 0
-------- -------- -------- -------- --------- --------
Net realized and unrealized gain
(loss) on investments............ 58,368 (30,855) 3,109 2,822 (10,634) 0
-------- -------- -------- -------- --------- --------
Net increase in net assets
resulting from operations........ $191,656 $ 83,068 $ 10,306 $ 6,316 $ 243,704 $ 3,301
======== ======== ======== ======== ========= ========
</TABLE>
See notes to financial statements.
7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
Dividend income................. $ 14,696 $ 53,185 $ 18,282 $ 167,557
Mortality and expense risk
charges (Note 3).............. (2,759) (8,684) (3,870) (24,447)
--------- --------- --------- ------------
Net investment income........... 11,937 44,501 14,412 143,110
--------- --------- --------- ------------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 129,866 518,157 250,828 22,561,017
Cost of shares sold........... (125,053) (464,446) (240,034) (22,561,017)
--------- --------- --------- ------------
Net realized gain on
investments................... 4,813 53,711 10,794 0
Net increase (decrease) in
unrealized appreciation of
investments................... 5,189 5,771 5,587 0
--------- --------- --------- ------------
Net realized and unrealized gain
(loss) on investments......... 10,002 59,482 16,381 0
--------- --------- --------- ------------
Net increase in net assets
resulting from operations..... $ 21,939 $ 103,983 $ 30,793 $ 143,110
========= ========= ========= ============
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------------------
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................. $ 1,305,382 $ 1,037,569 $ 7,035,689 $ 352,610 $ 263,918
Mortality and expense risk
charges (Note 3).............. (173,004) (94,319) (575,478) (42,760) (20,051)
----------- ----------- ------------ ----------- ---------
Net investment income........... 1,132,378 943,250 6,460,211 309,850 243,867
----------- ----------- ------------ ----------- ---------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 6,165,465 3,785,091 18,055,194 1,538,299 804,131
Cost of shares sold........... (4,866,214) (2,904,815) (13,791,374) (1,390,455) (788,311)
----------- ----------- ------------ ----------- ---------
Net realized gain on
investments................... 1,299,251 880,276 4,263,820 147,844 15,820
Net increase (decrease) in
unrealized appreciation of
investments................... (555,041) (781,462) (6,000,861) 260,368 (184,965)
----------- ----------- ------------ ----------- ---------
Net realized and unrealized gain
(loss) on investments......... 744,210 98,814 (1,737,041) 408,212 (169,145)
----------- ----------- ------------ ----------- ---------
Net increase in net assets
resulting from operations..... $ 1,876,588 $ 1,042,064 $ 4,723,170 $ 718,062 $ 74,722
=========== =========== ============ =========== =========
</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>
STRATEGIST
--------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- -------------------- ------------------- -------------------
1998 1997 1998 1997 1998 1997 1998 1997
-------- -------- -------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $133,288 $ 53,040 $113,923 $ 76,627 $ 7,197 $ 9,374 $ 3,494 $ 5,147
Net realized gain on
investments.................. 31,754 33,607 24,324 84,704 1,127 1,672 1,624 3,780
Net increase (decrease) in
unrealized appreciation of
investments.................. 26,614 101,936 (55,179) 32,332 1,982 288 1,198 649
-------- -------- -------- --------- -------- -------- -------- --------
Net increase in net assets
resulting from operations...... 191,656 188,583 83,068 193,663 10,306 11,334 6,316 9,576
-------- -------- -------- --------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 47,550 35,646 31,012 39,172 8,787 8,194 4,168 4,547
Net asset value of units
redeemed or used to meet
contract obligations......... (76,005) (59,621) (60,685) (193,625) (25,134) (40,032) (11,205) (37,821)
-------- -------- -------- --------- -------- -------- -------- --------
Net decrease from unit
transactions................... (28,455) (23,975) (29,673) (154,453) (16,347) (31,838) (7,037) (33,274)
-------- -------- -------- --------- -------- -------- -------- --------
Net increase (decrease) in net
assets......................... 163,201 164,608 53,395 39,210 (6,041) (20,504) (721) (23,698)
Net assets beginning of year..... 798,134 633,526 705,660 666,450 156,537 177,041 71,555 95,253
-------- -------- -------- --------- -------- -------- -------- --------
Net assets end of year*.......... $961,335 $798,134 $759,055 $ 705,660 $150,496 $156,537 $ 70,834 $ 71,555
======== ======== ======== ========= ======== ======== ======== ========
Units outstanding beginning of
year........................... 14,506 14,958 12,292 15,149 6,639 8,041 2,334 3,504
Units issued during the year..... 803 747 526 783 363 362 127 165
Units redeemed during the year... (1,302) (1,199) (1,010) (3,640) (1,025) (1,764) (349) (1,335)
-------- -------- -------- --------- -------- -------- -------- --------
Units outstanding end of year.... 14,007 14,506 11,808 12,292 5,977 6,639 2,112 2,334
======== ======== ======== ========= ======== ======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $301,309 $168,021 $441,681 $ 327,758 $171,031 $163,834 $103,589 $100,095
<CAPTION>
STRATEGIST
---------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------------- -------------------
1998 1997 1998 1997
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 254,338 $ 77,745 $ 3,301 $ 3,689
Net realized gain on
investments.................. 73,407 100,092 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................. (84,041) 59,772 0 0
---------- ---------- -------- --------
Net increase in net assets
resulting from operations...... 243,704 237,609 3,301 3,689
---------- ---------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 63,685 77,730 6,765 6,471
Net asset value of units
redeemed or used to meet
contract obligations......... (183,727) (287,917) (16,512) (19,886)
---------- ---------- -------- --------
Net decrease from unit
transactions................... (120,042) (210,187) (9,747) (13,415)
---------- ---------- -------- --------
Net increase (decrease) in net
assets......................... 123,662 27,422 (6,446) (9,726)
Net assets beginning of year..... 1,111,163 1,083,741 75,563 85,289
---------- ---------- -------- --------
Net assets end of year*.......... $1,234,825 $1,111,163 $ 69,117 $ 75,563
========== ========== ======== ========
Units outstanding beginning of
year........................... 28,291 34,279 4,207 4,970
Units issued during the year..... 1,509 2,219 369 368
Units redeemed during the year... (4,235) (8,207) (898) (1,131)
---------- ---------- -------- --------
Units outstanding end of year.... 25,565 28,291 3,678 4,207
========== ========== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 787,844 $ 533,506 $ 80,477 $ 77,176
</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>
MONYEQUITY MASTER
--------------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------------------------------------------------
INTERMEDIATE TERM LONG TERM GOVERNMENT MONEY
BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ---------------------- --------------------- ---------------------------
1998 1997 1998 1997 1998 1997 1998 1997
-------- -------- ---------- --------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income...... $ 11,937 $ 5,087 $ 44,501 $ 36,542 $ 14,412 $ 11,060 $ 143,110 $ 115,801
Net realized gain on
investments.............. 4,813 1,269 53,711 6,284 10,794 4,933 0 0
Net increase in unrealized
appreciation of
investments.............. 5,189 3,027 5,771 56,115 5,587 9,241 0 0
-------- -------- ---------- --------- --------- --------- ------------ ------------
Net increase in net assets
resulting from
operations................. 21,939 9,383 103,983 98,941 30,793 25,234 143,110 115,801
-------- -------- ---------- --------- --------- --------- ------------ ------------
From unit transactions:
Net proceeds from the
issuance of units........ 495,470 172,340 910,497 471,749 389,606 288,293 21,592,510 20,219,389
Net asset value of units
redeemed or used to meet
contract obligations..... (99,753) (38,182) (407,166) (236,759) (199,430) (107,779) (20,103,798) (20,985,756)
-------- -------- ---------- --------- --------- --------- ------------ ------------
Net increase (decrease) from
unit transactions.......... 395,717 134,158 503,331 234,990 190,176 180,514 1,488,712 (766,367)
-------- -------- ---------- --------- --------- --------- ------------ ------------
Net increase (decrease) in
net assets................. 417,656 143,541 607,314 333,931 220,969 205,748 1,631,822 (650,566)
Net assets beginning of
year....................... 234,365 90,824 948,462 614,531 498,405 292,657 3,698,674 4,349,240
-------- -------- ---------- --------- --------- --------- ------------ ------------
Net assets end of year*...... $652,021 $234,365 $1,555,776 $ 948,462 $ 719,374 $ 498,405 $ 5,330,496 $ 3,698,674
======== ======== ========== ========= ========= ========= ============ ============
Units outstanding beginning
of year.................... 19,650 8,138 69,779 50,910 42,420 26,498 325,979 400,565
Units issued during the
year....................... 39,723 14,831 63,831 37,613 31,996 25,322 1,861,351 1,818,649
Units redeemed during the
year....................... (8,113) (3,319) (28,865) (18,744) (16,688) (9,400) (1,737,685) (1,893,235)
-------- -------- ---------- --------- --------- --------- ------------ ------------
Units outstanding end of
year....................... 51,260 19,650 104,745 69,779 57,728 42,420 449,645 325,979
======== ======== ========== ========= ========= ========= ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 18,034 $ 6,097 $ 91,808 $ 47,307 $ 28,936 $ 14,524 $ 365,701 $ 222,591
</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>
MONYEQUITY MASTER
----------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------- ------------------------- --------------------------
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 1,132,378 $ 467,545 $ 943,250 $ 660,447 $ 6,460,211 $ 2,400,789
Net realized gain on
investments.................. 1,299,251 746,120 880,276 342,745 4,263,820 2,836,432
Net increase (decrease) in
unrealized appreciation of
investments.................. (555,041) 984,236 (781,462) 568,217 (6,000,861) 3,108,829
----------- ----------- ----------- ----------- ------------ -----------
Net increase in net assets
resulting from operations...... 1,876,588 2,197,901 1,042,064 1,571,409 4,723,170 8,346,050
----------- ----------- ----------- ----------- ------------ -----------
From unit transactions:
Net proceeds from the issuance
of units..................... 17,178,981 11,812,002 11,226,613 5,248,401 43,195,093 36,238,986
Net asset value of units
redeemed or used to meet
contract obligations......... (5,460,969) (2,656,849) (3,126,835) (1,072,152) (16,133,792) (9,726,108)
----------- ----------- ----------- ----------- ------------ -----------
Net increase from unit
transactions................... 11,718,012 9,155,153 8,099,778 4,176,249 27,061,301 26,512,878
----------- ----------- ----------- ----------- ------------ -----------
Net increase in net assets....... 13,594,600 11,353,054 9,141,842 5,747,658 31,784,471 34,858,928
Net assets beginning of year..... 16,482,798 5,129,744 8,184,725 2,437,067 60,069,001 25,210,073
----------- ----------- ----------- ----------- ------------ -----------
Net assets end of year*.......... $30,077,398 $16,482,798 $17,326,567 $ 8,184,725 $ 91,853,472 $60,069,001
=========== =========== =========== =========== ============ ===========
Units outstanding beginning of
year........................... 821,090 319,002 449,403 191,743 2,954,670 1,532,486
Units issued during the year..... 812,747 647,931 594,256 326,703 2,028,359 1,945,611
Units redeemed during the year... (260,357) (145,843) (169,288) (69,043) (766,281) (523,427)
----------- ----------- ----------- ----------- ------------ -----------
Units outstanding end of year.... 1,373,480 821,090 874,371 449,403 4,216,748 2,954,670
=========== =========== =========== =========== ============ ===========
- ---------------
* Includes undistributed net
investment income of: $ 1,671,285 $ 538,907 $ 1,649,083 $ 705,833 $ 9,179,832 $ 2,719,621
<CAPTION>
MONYEQUITY MASTER
--------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------------ -----------------------
1998 1997 1998 1997
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 309,850 $ 98,833 $ 243,867 $ 111,190
Net realized gain on
investments.................. 147,844 135,511 15,820 35,931
Net increase (decrease) in
unrealized appreciation of
investments.................. 260,368 (204,105) (184,965) 12,532
----------- ---------- ---------- ----------
Net increase in net assets
resulting from operations...... 718,062 30,239 74,722 159,653
----------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units..................... 4,158,036 3,034,936 2,119,601 1,268,282
Net asset value of units
redeemed or used to meet
contract obligations......... (1,336,551) (717,365) (598,271) (319,664)
----------- ---------- ---------- ----------
Net increase from unit
transactions................... 2,821,485 2,317,571 1,521,330 948,618
----------- ---------- ---------- ----------
Net increase in net assets....... 3,539,547 2,347,810 1,596,052 1,108,271
Net assets beginning of year..... 4,079,254 1,731,444 1,939,719 831,448
----------- ---------- ---------- ----------
Net assets end of year*.......... $ 7,618,801 $4,079,254 $3,535,771 $1,939,719
=========== ========== ========== ==========
Units outstanding beginning of
year........................... 290,466 128,820 138,275 66,709
Units issued during the year..... 275,608 211,751 148,827 95,695
Units redeemed during the year... (90,092) (50,105) (41,946) (24,129)
----------- ---------- ---------- ----------
Units outstanding end of year.... 475,982 290,466 245,156 138,275
=========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 425,563 $ 115,713 $ 404,804 $ 160,937
</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 (Strategist), Variable Universal Life (MONYEquity
Master and MONY Custom Equity Master) and Corporate Sponsored Variable Universal
Life Insurance policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY"). For
presentation purposes, the information related to the Variable Life (Strategist)
and Variable Universal Life (MONYEquity Master) Insurance policies is presented
here.
There are currently six Strategist Subaccounts and nine MONYEquity Master
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 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 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 Funds' portfolios is
stated at value which is the net asset value of each portfolio. Except for the
Money Market Portfolio, 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 Portfolio, the net asset value is 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 Strategist and MONYEquity Master Subaccounts for 1998
aggregated $16,555,277.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Strategist
Subaccounts) and .75 percent (for the MONYEquity Master Subaccounts) of average
daily net assets of the subaccounts. 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 MONY Series Fund, Inc. at cost, at December 31, 1998 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........................ 22,121 26,039 14,077 5,245 53,914 75,563
Amount........................ $546,247 $487,414 $148,164 $ 63,055 $ 806,595 $ 75,563
-------- -------- -------- -------- ---------- --------
Shares acquired:
Shares........................ 1,464 1,429 801 331 6,247 7,011
Amount........................ $ 50,289 $ 36,229 $ 8,892 $ 4,525 $ 117,595 $ 7,011
Shares received for reinvestment
of dividends:
Shares........................ 4,089 4,582 759 300 14,780 3,735
Amount........................ $138,443 $118,315 $ 8,132 $ 3,912 $ 261,166 $ 3,735
Shares redeemed:
Shares........................ (2,508) (2,799) (2,354) (878) (12,921) (17,192)
Amount........................ $(52,145) $(45,970) $(25,047) $(10,356) $ (171,058) $(17,192)
-------- -------- -------- -------- ---------- --------
Net change:
Shares........................ 3,045 3,212 (794) (247) 8,106 (6,446)
Amount........................ $136,587 $108,574 $ (8,023) $ (1,919) $ 207,703 $ (6,446)
-------- -------- -------- -------- ---------- --------
Shares end of year:
Shares........................ 25,166 29,251 13,283 4,998 62,020 69,117
Amount........................ $682,834 $595,988 $140,141 $ 61,136 $1,014,298 $ 69,117
======== ======== ======== ======== ========== ========
</TABLE>
13
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-----------------------------------------------------
LONG
INTERMEDIATE TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 21,076 $ 69,535 45,767 3,698,674
Amount............. $ 229,105 $ 870,461 $ 482,067 $ 3,698,674
--------- ---------- --------- ------------
Shares acquired:
Shares............. 46,749 73,783 39,894 24,025,282
Amount............. $ 522,824 $1,012,804 $ 437,134 $ 24,025,282
Shares received for
reinvestment of
dividends:
Shares............. 1,372 4,085 1,728 167,557
Amount............. $ 14,696 $ 53,185 $ 18,282 $ 167,557
Shares redeemed:
Shares............. (11,649) (37,609) (22,987) (22,561,017)
Amount............. $(125,053) $ (464,446) $(240,034) $(22,561,017)
--------- ---------- --------- ------------
Net change:
Shares............. 36,472 40,259 18,635 1,631,822
Amount............. $ 412,467 $ 601,543 $ 215,382 $ 1,631,822
--------- ---------- --------- ------------
Shares end of year:
Shares............. 57,548 109,794 64,402 5,330,496
Amount............. $ 641,572 $1,472,004 $ 697,449 $ 5,330,496
========= ========== ========= ============
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
HIGH
INTERNATIONAL YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 469,730 306,544 1,473,001 660,074 339,706
Amount............. $15,117,468 $ 7,542,179 $ 54,701,619 $ 4,186,777 $1,900,963
----------- ----------- ------------ ----------- ----------
Shares acquired:
Shares............. 478,902 425,502 1,044,855 650,298 414,614
Amount............. $17,710,473 $11,790,550 $ 44,541,017 $ 4,317,024 $2,305,410
Shares received for
reinvestment of
dividends:
Shares............. 35,588 39,617 173,464 54,331 48,034
Amount............. $ 1,305,382 $ 1,037,569 $ 7,035,689 $ 352,610 $ 263,918
Shares redeemed:
Shares............. (167,343) (138,382) (426,688) (234,317) (143,923)
Amount............. $(4,866,214) $(2,904,815) $(13,791,374) $(1,390,455) $ (788,311)
----------- ----------- ------------ ----------- ----------
Net change:
Shares............. 347,147 326,737 791,631 470,312 318,725
Amount............. $14,149,641 $ 9,923,304 $ 37,785,332 $ 3,279,179 $1,781,017
----------- ----------- ------------ ----------- ----------
Shares end of year:
Shares............. 816,877 633,281 2,264,632 1,130,386 658,431
Amount............. $29,267,109 $17,465,483 $ 92,486,951 $ 7,465,956 $3,681,980
=========== =========== ============ =========== ==========
</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 -- Strategist/MONYEquity
Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L (comprising,
respectively, Strategist's Equity Growth, Equity Income, Intermediate Term Bond,
Long Term Bond, Diversified, and Money Market Subaccounts; and MONYEquity
Master's Intermediate Term Bond, Long Term Bond, Government Securities, Money
Market, Equity, Small Cap, Managed, International Growth, and High Yield Bond
Subaccounts) at December 31, 1998, the results of each of their operations for
the year then ended and the changes in each of their net assets for each of the
two years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of MONY
Life Insurance Company of America's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
15
<PAGE> 18
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $ 1,929 $1,536 $ 729 $64,655 $19,113 $7,807 $26,742
======= ====== ====== ======= ======= ====== =======
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $ 0 $ 0 $ 0 $ 0 $19,357 $8,087 $26,973
Investments in MONY Series Fund,
Inc., at net asset value (Note
2).............................. 1,931 1,541 729 64,655 0 0 0
Amount due from Enterprise
Accumulation Trust.............. 0 0 0 0 9 7 11
Amount due from MONY America...... 327 352 561 65,291 9,086 193 11,806
Amount due from MONY Series Fund,
Inc. ........................... 4 0 0 1,204 0 0 0
------- ------ ------ ------- ------- ------ -------
Total assets............ 2,262 1,893 1,290 131,150 28,452 8,287 38,790
------- ------ ------ ------- ------- ------ -------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 0 0 0 0 9,086 193 11,806
Amount due to MONY America........ 4 0 0 1,204 9 7 11
Amount due to MONY Series Fund,
Inc............................. 327 352 561 65,291 0 0 0
------- ------ ------ ------- ------- ------ -------
Total liabilities....... 331 352 561 66,495 9,095 200 11,817
------- ------ ------ ------- ------- ------ -------
Net assets........................ $ 1,931 $1,541 $ 729 $64,655 $19,357 $8,087 $26,973
======= ====== ====== ======= ======= ====== =======
Net assets consist of:
Contractholders' net
payments................... $ 1,934 $1,552 $ 737 $65,877 $19,495 $7,930 $27,260
Cost of insurance withdrawals
(Note 3)................... (5) (16) (8) (1,222) (389) (125) (533)
Undistributed net investment
loss....................... 0 0 0 0 (1) 0 (1)
Accumulated net realized gain
on investments............. 0 0 0 0 8 2 16
Unrealized appreciation of
investments................ 2 5 0 0 244 280 231
------- ------ ------ ------- ------- ------ -------
Net assets........................ $ 1,931 $1,541 $ 729 $64,655 $19,357 $8,087 $26,973
======= ====== ====== ======= ======= ====== =======
Number of units outstanding*...... 193 155 73 6,463 1,912 772 2,653
------- ------ ------ ------- ------- ------ -------
Net asset value per unit
outstanding*.................... $ 10.03 $ 9.97 $10.00 $ 10.00 $ 10.13 $10.48 $ 10.17
======= ====== ====== ======= ======= ====== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
16
<PAGE> 19
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)... $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
====== ====== ======= ======= ====== ======= ======
Investments in Enterprise
Accumulation Trust at net
asset value (Note 2)......... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
Amount due from Enterprise
Accumulation Trust........... 4 0 11 0 1 0 4
Amount due from MONY America... 27 4 36,606 6,909 0 0 6,961
------ ------ ------- ------- ------ ------- ------
Total assets.......... 1,393 3,450 88,869 17,047 1,448 11,181 15,088
------ ------ ------- ------- ------ ------- ------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........... 27 4 36,606 6,909 0 0 6,961
Amount due to MONY America..... 4 0 11 0 1 0 4
------ ------ ------- ------- ------ ------- ------
Total liabilities..... 31 4 36,617 6,909 1 0 6,965
------ ------ ------- ------- ------ ------- ------
Net assets..................... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
====== ====== ======= ======= ====== ======= ======
Net assets consist of:
Contractholders' net
payments................. $1,391 $3,474 $52,403 $10,095 $1,448 $11,178 $8,145
Cost of insurance
withdrawals (Note 3)..... (49) (33) (300) (20) (53) (15) (49)
Undistributed net
investment income
(loss)................... 0 2 (1) 0 0 0 0
Accumulated net realized
gain on investments...... 2 0 26 0 1 0 3
Unrealized appreciation of
investments.............. 18 3 124 63 51 18 24
------ ------ ------- ------- ------ ------- ------
Net assets..................... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
====== ====== ======= ======= ====== ======= ======
Number of units outstanding*... 131 345 5,053 1,012 140 1,091 743
------ ------ ------- ------- ------ ------- ------
Net asset value per unit
outstanding*................. $10.37 $10.00 $ 10.34 $ 10.02 $10.34 $ 10.25 $10.93
====== ====== ======= ======= ====== ======= ======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
17
<PAGE> 20
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 29, 1998** DECEMBER 16, 1998** DECEMBER 17, 1998** DECEMBER 28, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Dividend income.......... $ 0 $ 0 $ 0 $ 0
Mortality and expense
risk charges (Note
3)..................... 0 0 0 0
--- ---- --- -------
Net investment loss...... 0 0 0 0
--- ---- --- -------
Realized and unrealized
gain on investments
(Note 2):
Proceeds from sales.... 5 23 8 1,222
Cost of shares sold.... (5) (23) (8) (1,222)
--- ---- --- -------
Net realized gain on
investments............ 0 0 0 0
Net increase in
unrealized appreciation
of investments......... 2 5 0 0
--- ---- --- -------
Net realized and
unrealized gain on
investments............ 2 5 0 0
--- ---- --- -------
Net increase in net
assets resulting from
operations............. $ 2 $ 5 $ 0 $ 0
=== ==== === =======
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Dividend income.......... $ 0 $ 0 $ 0
Mortality and expense
risk charges (Note
3)..................... (1) 0 (1)
----- ----- -----
Net investment loss...... (1) 0 (1)
----- ----- -----
Realized and unrealized
gain on investments
(Note 2):
Proceeds from sales.... 417 126 562
Cost of shares sold.... (409) (124) (546)
----- ----- -----
Net realized gain on
investments............ 8 2 16
Net increase in
unrealized appreciation
of investments......... 244 280 231
----- ----- -----
Net realized and
unrealized gain on
investments............ 252 282 247
----- ----- -----
Net increase in net
assets resulting from
operations............. $ 251 $ 282 $ 246
===== ===== =====
</TABLE>
- ---------------
** Commencement of operations.
See notes to financial statements.
18
<PAGE> 21
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 14, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Dividend income................ $ 0 $ 2 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............. 0 0 (1) 0
---- ---- ----- ----
Net investment income (loss)... 0 2 (1) 0
---- ---- ----- ----
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.......... 54 40 656 20
Cost of shares sold.......... (52) (40) (630) (20)
---- ---- ----- ----
Net realized gain on
investments.................. 2 0 26 0
Net increase in unrealized
appreciation of
investments.................. 18 3 124 63
---- ---- ----- ----
Net realized and unrealized
gain on investments.......... 20 3 150 63
---- ---- ----- ----
Net increase in net assets
resulting from operations.... $ 20 $ 5 $ 149 $ 63
==== ==== ===== ====
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Dividend income................ $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............. 0 0 0
---- ---- ----
Net investment income (loss)... 0 0 0
---- ---- ----
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.......... 68 15 51
Cost of shares sold.......... (67) (15) (48)
---- ---- ----
Net realized gain on
investments.................. 1 0 3
Net increase in unrealized
appreciation of
investments.................. 51 18 24
---- ---- ----
Net realized and unrealized
gain on investments.......... 52 18 27
---- ---- ----
Net increase in net assets
resulting from operations.... $ 52 $ 18 $ 27
==== ==== ====
</TABLE>
- ---------------
** Commencement of operations.
See notes to financial statements.
19
<PAGE> 22
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 29, 1998** DECEMBER 16, 1998** DECEMBER 17, 1998** DECEMBER 28, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment loss......... $ 0 $ 0 $ 0 $ 0
Net realized gain on
investments............... 0 0 0 0
Net increase in unrealized
appreciation of
investments............... 2 5 0 0
------ ------ ---- -------
Net increase in net assets
resulting from operations... 2 5 0 0
------ ------ ---- -------
From unit transactions:
Net proceeds from the
issuance of units......... 1,933 1,559 737 65,877
Net asset value of units
redeemed or used to meet
contract obligations...... (4) (23) (8) (1,222)
------ ------ ---- -------
Net increase from unit
transactions................ 1,929 1,536 729 64,655
------ ------ ---- -------
Net increase in net assets.... 1,931 1,541 729 64,655
Net assets beginning of
period...................... 0 0 0 0
------ ------ ---- -------
Net assets end of period*..... $1,931 $1,541 $729 $64,655
====== ====== ==== =======
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 193 157 74 6,585
Units redeemed during the
period...................... 0 (2) (1) (122)
------ ------ ---- -------
Units outstanding end of
period...................... 193 155 73 6,463
====== ====== ==== =======
- ---------------
* Includes undistributed net
investment loss of: $ 0 $ 0 $ 0 $ 0
** Commencement of operations.
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment loss......... $ (1) $ 0 $ (1)
Net realized gain on
investments............... 8 2 16
Net increase in unrealized
appreciation of
investments............... 244 280 231
------- ------ -------
Net increase in net assets
resulting from operations... 251 282 246
------- ------ -------
From unit transactions:
Net proceeds from the
issuance of units......... 19,516 7,930 27,281
Net asset value of units
redeemed or used to meet
contract obligations...... (410) (125) (554)
------- ------ -------
Net increase from unit
transactions................ 19,106 7,805 26,727
------- ------ -------
Net increase in net assets.... 19,357 8,087 26,973
Net assets beginning of
period...................... 0 0 0
------- ------ -------
Net assets end of period*..... $19,357 $8,087 $26,973
======= ====== =======
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 1,953 784 2,708
Units redeemed during the
period...................... (41) (12) (55)
------- ------ -------
Units outstanding end of
period...................... 1,912 772 2,653
======= ====== =======
- ---------------
* Includes undistributed net
investment loss of: $ (1) $ 0 $ (1)
** Commencement of operations.
</TABLE>
See notes to financial statements.
20
<PAGE> 23
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 14, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 0 $ 2 $ (1) $ 0
Net realized gain on
investments............... 2 0 26 0
Net increase in unrealized
appreciation of
investments............... 18 3 124 63
------ ------ ------- -------
Net increase in net assets
resulting from operations... 20 5 149 63
------ ------ ------- -------
From unit transactions:
Net proceeds from the
issuance of units......... 1,391 3,481 52,409 10,095
Net asset value of units
redeemed or used to meet
contract obligations...... (49) (40) (306) (20)
------ ------ ------- -------
Net increase from unit
transactions................ 1,342 3,441 52,103 10,075
------ ------ ------- -------
Net increase in net assets.... 1,362 3,446 52,252 10,138
Net assets beginning of
period...................... 0 0 0 0
------ ------ ------- -------
Net assets end of period*..... $1,362 $3,446 $52,252 $10,138
====== ====== ======= =======
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 136 349 5,083 1,014
Units redeemed during the
period...................... (5) (4) (30) (2)
------ ------ ------- -------
Units outstanding end of
period...................... 131 345 5,053 1,012
====== ====== ======= =======
- ---------------
* Includes undistributed net
investment income (loss)
of: $ 0 $ 2 $ (1) $ 0
** Commencement of operations.
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY CAPITAL
GROWTH EQUITY INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 0 $ 0 $ 0
Net realized gain on
investments............... 1 0 3
Net increase in unrealized
appreciation of
investments............... 51 18 24
------ ------- ------
Net increase in net assets
resulting from operations... 52 18 27
------ ------- ------
From unit transactions:
Net proceeds from the
issuance of units......... 1,456 11,177 8,145
Net asset value of units
redeemed or used to meet
contract obligations...... (61) (14) (49)
------ ------- ------
Net increase from unit
transactions................ 1,395 11,163 8,096
------ ------- ------
Net increase in net assets.... 1,447 11,181 8,123
Net assets beginning of
period...................... 0 0 0
------ ------- ------
Net assets end of period*..... $1,447 $11,181 $8,123
====== ======= ======
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 146 1,092 748
Units redeemed during the
period...................... (6) (1) (5)
------ ------- ------
Units outstanding end of
period...................... 140 1,091 743
====== ======= ======
- ---------------
* Includes undistributed net
investment income (loss)
of: $ 0 $ 0 $ 0
** Commencement of operations.
</TABLE>
See notes to financial statements.
21
<PAGE> 24
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 (Strategist), Variable Universal Life (MONYEquity
Master and MONY Custom Equity Master) and Corporate Sponsored Variable Universal
Life Insurance policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY"). For
presentation purposes, the information related only to the Variable Universal
Life Insurance policies (MONY Custom Equity Master) is presented here.
There are currently fourteen MONY Custom Equity Master 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 MONY Custom
Equity Master commenced operations during 1998. The Funds are registered under
the 1940 Act as open end, diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise 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 Funds' portfolios is
stated at value which is the net asset value of each portfolio. Except for the
Money Market Portfolio, 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 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 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 MONY Custom Equity Master Subaccounts for 1998 aggregated
$2,817.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .35 percent (for the MONY
Custom Equity Master Subaccounts) of average daily net assets of the
subaccounts. As investment adviser to the Fund, it receives amounts paid by the
Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
22
<PAGE> 25
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------- -------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares.............. 0 0 0 0 0 0 0
Amount.............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------ ------ ---- ------- ------- ------ -------
Shares acquired:
Shares.............. 171 110 66 65,877 537 300 679
Amount.............. $1,934 $1,559 $737 $65,877 $19,522 $7,931 $27,288
Shares received for
reinvestment of
dividends:
Shares.............. 0 0 0 0 0 0 0
Amount.............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares.............. (1) (2) (1) (1,222) (12) (5) (14)
Amount.............. $ (5) $ (23) $ (8) $(1,222) $ (409) $ (124) $ (546)
------ ------ ---- ------- ------- ------ -------
Net change:
Shares.............. 170 108 65 64,655 525 295 665
Amount.............. $1,929 $1,536 $729 $64,655 $19,113 $7,807 $26,742
------ ------ ---- ------- ------- ------ -------
Shares end of period:
Shares.............. 170 108 65 64,655 525 295 665
Amount.............. $1,929 $1,536 $729 $64,655 $19,113 $7,807 $26,742
====== ====== ==== ======= ======= ====== =======
</TABLE>
23
<PAGE> 26
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- --------- ---------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 0 0 0 0 0 0 0
Amount............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------ ------ ------- ------- ------ ------- ------
Shares acquired:
Shares............. 210 649 10,040 1,988 278 2,200 1,468
Amount............. $1,396 $3,481 $52,758 $10,095 $1,463 $11,178 $8,147
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 0 0 0 0
Amount............. $ 0 $ 2 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares............. (8) (7) (125) (4) (13) (3) (9)
Amount............. $ (52) $ (40) $ (630) $ (20) $ (67) $ (15) $ (48)
------ ------ ------- ------- ------ ------- ------
Net change:
Shares............. 202 642 9,915 1,984 265 2,197 1,459
Amount............. $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
------ ------ ------- ------- ------ ------- ------
Shares end of period:
Shares............. 202 642 9,915 1,984 265 2,197 1,459
Amount............. $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
====== ====== ======= ======= ====== ======= ======
</TABLE>
24
<PAGE> 27
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 -- MONY Custom Equity Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L (comprising,
respectively, MONY Custom Equity Master's Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, Equity, Small Company Value, Managed,
International Growth, High Yield Bond, Growth, Growth and Income, Small Company
Growth, Equity Income, and Capital Appreciation Subaccounts) at December 31,
1998, and the results of each of their operations and the changes in each of
their net assets for the periods presented, in conformity with generally
accepted accounting principles. These financial statements are the
responsibility of the MONY Life Insurance Company of America's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
25
<PAGE> 28
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
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)............ $ 77,606 $ 43,919 $ 6,913 $ 13,132 $ 76,409 $ 24,997
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2).............. $ 99,367 $ 48,858 $ 7,441 $ 15,804 $ 97,460 $ 24,997
-------- -------- -------- -------- -------- --------
Net assets.............................. $ 99,367 $ 48,858 $ 7,441 $ 15,804 $ 97,460 $ 24,997
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments......... $ 78,894 $ 50,196 $ 9,574 $ 16,678 $ 69,157 $ 47,218
Cost of insurance withdrawals (Note
3)................................. (57,028) (36,891) (13,271) (36,377) (40,407) (48,793)
Undistributed net investment income... 27,383 19,851 9,477 27,437 41,639 26,572
Accumulated net realized gain on
investments........................ 28,357 10,763 1,133 5,394 6,020 0
Unrealized appreciation of
investments........................ 21,761 4,939 528 2,672 21,051 0
-------- -------- -------- -------- -------- --------
Net assets.............................. $ 99,367 $ 48,858 $ 7,441 $ 15,804 $ 97,460 $ 24,997
======== ======== ======== ======== ======== ========
Number of units outstanding*............ 1,830 975 327 554 2,330 1,385
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*... $ 54.29 $ 50.11 $ 22.81 $ 28.53 $ 41.83 $ 18.05
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
26
<PAGE> 29
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------
MONEY INTERMEDIATE LONG TERM GOVERNMENT
MARKET TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)..................... $2,685,879 $299,078 $326,005 $863,223
========== ======== ======== ========
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)........................... $2,685,879 $304,533 $337,155 $876,552
---------- -------- -------- --------
Net assets....................................... $2,685,879 $304,533 $337,155 $876,552
========== ======== ======== ========
Net assets consist of:
Contractholders' net payments............... $2,795,950 $296,720 $323,607 $862,480
Cost of insurance and mortality & expense
risk withdrawals (Note 3)................. (172,880) (5,229) (6,020) (18,284)
Undistributed net investment income......... 62,809 7,643 8,348 18,492
Accumulated net realized gain (loss) on
investments............................... 0 (56) 70 535
Unrealized appreciation of investments...... 0 5,455 11,150 13,329
---------- -------- -------- --------
Net assets....................................... $2,685,879 $304,533 $337,155 $876,552
========== ======== ======== ========
Number of units outstanding*..................... 251,238 28,549 30,651 82,700
---------- -------- -------- --------
Net asset value per unit outstanding*............ $ 10.69 $ 10.67 $ 11.00 $ 10.60
========== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 30
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------
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).......... $33,658 $455,079 $926,260 $225,697 $406,572
======= ======== ======== ======== ========
Investments in Enterprise Accumulation
Trust at net asset value (Note 2)... $33,896 $430,952 $852,315 $228,520 $379,712
------- -------- -------- -------- --------
Net assets............................ $33,896 $430,952 $852,315 $228,520 $379,712
======= ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments.... $29,773 $421,241 $863,191 $218,324 $385,960
Cost of insurance and mortality &
expense risk withdrawals
(Note 3)....................... (4,359) (11,874) (24,378) (7,157) (10,605)
Undistributed net investment
income......................... 1,962 44,291 86,341 14,276 31,562
Accumulated net realized gain
(loss) on investments.......... 6,282 1,421 1,106 254 (345)
Unrealized appreciation
(depreciation) of
investments.................... 238 (24,127) (73,945) 2,823 (26,860)
------- -------- -------- -------- --------
Net assets............................ $33,896 $430,952 $852,315 $228,520 $379,712
======= ======== ======== ======== ========
Number of units outstanding*.......... 2,848 34,921 75,641 21,906 34,788
------- -------- -------- -------- --------
Net asset value per unit
outstanding*........................ $ 11.90 $ 12.34 $ 11.27 $ 10.43 $ 10.91
======= ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 31
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
-------------------------------------- ------------------------------------
SMALL WORLDWIDE
CAPITAL COMPANY STOCK HARD WORLDWIDE EMERGING
APPRECIATION STOCK INDEX ASSETS BOND MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $413,277 $289,750 $3,270,213 $ 236 $19,355 $31,065
======== ======== ========== ===== ======= =======
Investments in Dreyfus at net asset
value (Note 2)................... $480,425 $295,679 $3,902,550 $ 0 $ 0 $ 0
Investments in Van Eck Worldwide
Insurance Trust at net asset
value (Note 2)................... 0 0 0 211 20,819 25,483
-------- -------- ---------- ----- ------- -------
Net assets......................... $480,425 $295,679 $3,902,550 $ 211 $20,819 $25,483
======== ======== ========== ===== ======= =======
Net assets consist of:
Contractholders' net
payments.................... $418,884 $300,532 $3,278,262 $ 249 $19,734 $37,221
Cost of insurance and
mortality & expense risk
withdrawals (Note 3)........ (11,643) (10,707) (73,421) (8) (409) (1,847)
Undistributed net investment
income...................... 3,990 1,046 40,138 0 0 197
Accumulated net realized gain
(loss) on investments....... 2,046 (1,121) 25,234 (5) 30 (4,506)
Unrealized appreciation
(depreciation) of
investments................. 67,148 5,929 632,337 (25) 1,464 (5,582)
-------- -------- ---------- ----- ------- -------
Net assets......................... $480,425 $295,679 $3,902,550 $ 211 $20,819 $25,483
======== ======== ========== ===== ======= =======
Number of units outstanding*....... 36,191 32,362 291,990 26 1,873 5,495
-------- -------- ---------- ----- ------- -------
Net asset value per unit
outstanding*..................... $ 13.27 $ 9.14 $ 13.37 $8.25 $ 11.11 $ 4.64
======== ======== ========== ===== ======= =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-5
<PAGE> 32
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------------
T. ROWE PRICE
--------------------------------------------------------
PERSONAL
EQUITY INTERNATIONAL NEW AMERICA STRATEGY
INCOME STOCK GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)..................... $50,488 $14,492 $43,998 $8,992
======= ======= ======= ======
Investments in T. Rowe Price at net asset value
(Note 2)....................................... $49,384 $15,049 $48,220 $8,919
------- ------- ------- ------
Net assets....................................... $49,384 $15,049 $48,220 $8,919
======= ======= ======= ======
Net assets consist of:
Contractholders' net payments............... $49,520 $14,458 $43,641 $8,738
Cost of insurance and mortality & expense
risk withdrawals (Note 3)................. (687) (200) (606) (121)
Undistributed net investment income......... 1,643 235 953 372
Accumulated net realized gain (loss) on
investments............................... 12 (1) 10 3
Unrealized appreciation (depreciation) of
investments............................... (1,104) 557 4,222 (73)
------- ------- ------- ------
Net assets....................................... $49,384 $15,049 $48,220 $8,919
======= ======= ======= ======
Number of units outstanding*..................... 4,853 1,427 4,282 856
------- ------- ------- ------
Net asset value per unit outstanding*............ $ 10.18 $ 10.54 $ 11.26 $10.41
======= ======= ======= ======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-6
<PAGE> 33
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------
MONEY INTERMEDIATE LONG TERM GOVERNMENT
MARKET TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ----------------- ----------------- -----------------
FOR THE YEAR FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
ENDED JANUARY 23, 1998* JANUARY 23, 1998* FEBRUARY 9, 1998*
DECEMBER 31, THROUGH THROUGH THROUGH
1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------ ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Dividend income........................ $ 49,821 $ 7,643 $ 8,348 $ 18,492
----------- ------- ------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................. 5,606,246 6,353 7,236 76,822
Cost of shares sold.................. (5,606,246) (6,409) (7,166) (76,287)
----------- ------- ------- --------
Net realized gain (loss) on
investments.......................... 0 (56) 70 535
Net increase in unrealized appreciation
of investments....................... 0 5,455 11,150 13,329
----------- ------- ------- --------
Net realized and unrealized gain on
investments.......................... 0 5,399 11,220 13,864
----------- ------- ------- --------
Net increase in net assets resulting
from operations...................... $ 49,821 $13,042 $19,568 $ 32,356
=========== ======= ======= ========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-7
<PAGE> 34
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------
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....................... $ 1,531 $ 26,454 $ 67,233 $ 11,028 $ 29,756
-------- -------- -------- -------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 46,739 25,047 24,170 19,253 13,117
Cost of shares sold................. (40,498) (23,794) (23,204) (18,939) (13,479)
-------- -------- -------- -------- --------
Net realized gain (loss) on
investments......................... 6,241 1,253 966 314 (362)
Net increase (decrease) in unrealized
appreciation of investments......... (12) (13,120) (57,275) 5,752 (26,236)
-------- -------- -------- -------- --------
Net realized and unrealized gain
(loss) on investments............... 6,229 (11,867) (56,309) 6,066 (26,598)
-------- -------- -------- -------- --------
Net increase in net assets resulting
from operations..................... $ 7,760 $ 14,587 $ 10,924 $ 17,094 $ 3,158
======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
F-8
<PAGE> 35
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------
DREYFUS
------------------------------------------------
CAPITAL SMALL COMPANY STOCK
APPRECIATION STOCK INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------------ ------------
FOR THE YEAR FOR THE PERIOD FOR THE YEAR
ENDED FEBRUARY 13, 1998* ENDED
DECEMBER 31, THROUGH DECEMBER 31,
1998 DECEMBER 31, 1998 1998
------------ ------------------ ------------
<S> <C> <C> <C>
Dividend income........... $ 2,695 $ 1,046 $ 39,642
-------- ------- ---------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales..... 15,339 8,286 282,082
Cost of shares sold..... (13,284) (9,407) (256,862)
-------- ------- ---------
Net realized gain (loss)
on investments.......... 2,055 (1,121) 25,220
Net increase (decrease) in
unrealized appreciation
of investments.......... 68,575 5,929 632,283
-------- ------- ---------
Net realized and
unrealized gain (loss)
on
investments............. 70,630 4,808 657,503
-------- ------- ---------
Net increase (decrease) in
net assets resulting
from operations......... $ 73,325 $ 5,854 $ 697,145
======== ======= =========
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------
VAN ECK WORLDWIDE INSURANCE TRUST
---------------------------------------------------------
HARD WORLDWIDE WORLDWIDE
ASSETS BOND EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------------ ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE YEAR
JUNE 15, 1998* FEBRUARY 13, 1998* ENDED
THROUGH THROUGH DECEMBER 31,
DECEMBER 31, 1998 DECEMBER 31, 1998 1998
----------------- ------------------ ----------------
<S> <C> <C> <C>
Dividend income........... $ 0 $ 0 $ 197
---- ------ -------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales..... 27 600 4,017
Cost of shares sold..... (32) (570) (8,462)
---- ------ -------
Net realized gain (loss)
on investments.......... (5) 30 (4,445)
Net increase (decrease) in
unrealized appreciation
of investments.......... (25) 1,464 (1,662)
---- ------ -------
Net realized and
unrealized gain (loss)
on
investments............. (30) 1,494 (6,107)
---- ------ -------
Net increase (decrease) in
net assets resulting
from operations......... $(30) $1,494 $(5,910)
==== ====== =======
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-9
<PAGE> 36
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------
T. ROWE PRICE
------------------------------------------------------------------------------------
EQUITY INTERNATIONAL NEW AMERICA PERSONAL STRATEGY
INCOME STOCK GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1998* NOVEMBER 19, 1998* NOVEMBER 19, 1998* NOVEMBER 19, 1998*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Dividend income............ $ 1,643 $ 235 $ 953 $ 372
------- ----- ------- -----
Realized and unrealized
gain (loss) on
investments
(Note 2):
Proceeds from sales...... 1,211 351 1,067 214
Cost of shares sold...... (1,199) (352) (1,057) (211)
------- ----- ------- -----
Net realized gain (loss) on
investments.............. 12 (1) 10 3
Net increase (decrease) in
unrealized appreciation
of investments........... (1,104) 557 4,222 (73)
------- ----- ------- -----
Net realized and unrealized
gain (loss) on
investments.............. (1,092) 556 4,232 (70)
------- ----- ------- -----
Net increase in net assets
resulting from
operations............... $ 551 $ 791 $ 5,185 $ 302
======= ===== ======= =====
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-10
<PAGE> 37
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
MONEY INTERMEDIATE
MARKET TERM BOND
SUBACCOUNT SUBACCOUNT
------------------------------ ------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JULY 10, 1997** JANUARY 23, 1998**
ENDED THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998
------------ --------------- ------------------
<S> <C> <C> <C>
From operations:
Net investment income...................... $ 49,821 $ 12,988 $ 7,643
Net realized gain (loss) on investments.... 0 0 (56)
Net increase in unrealized appreciation of
investments.............................. 0 0 5,455
----------- ----------- --------
Net increase in net assets resulting from
operations................................. 49,821 12,988 13,042
----------- ----------- --------
From unit transactions:
Net proceeds from the issuance of units.... 6,078,380 1,961,819 296,772
Net asset value of units redeemed or used
to meet contract obligations............. (4,286,177) (1,130,952) (5,281)
----------- ----------- --------
Net increase from unit transactions.......... 1,792,203 830,867 291,491
----------- ----------- --------
Net increase in net assets................... 1,842,024 843,855 304,533
Net assets beginning of period............... 843,855 0 0
----------- ----------- --------
Net assets end of period*.................... $ 2,685,879 $ 843,855 $304,533
=========== =========== ========
Units outstanding beginning of period........ 83,085 0 0
Units issued during the period............... 494,235 194,816 29,060
Units redeemed during the period............. (326,082) (111,731) (511)
----------- ----------- --------
Units outstanding end of period.............. 251,238 83,085 28,549
=========== =========== ========
- ---------------
*Includes undistributed net investment
income of:................................. $ 62,809 $ 12,988 $ 7,643
**Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------- ------------------------------
LONG TERM GOVERNMENT
BOND SECURITIES EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 23, 1998** FEBRUARY 9, 1998** FOR THE YEAR JULY 23, 1997**
THROUGH THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1998 1998 1997
------------------ ------------------ ------------ ---------------
<S> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 8,348 $ 18,492 $ 1,531 $ 431
Net realized gain (loss) on investments.... 70 535 6,241 41
Net increase in unrealized appreciation of
investments.............................. 11,150 13,329 (12) 250
-------- -------- ------- -------
Net increase in net assets resulting from
operations................................. 19,568 32,356 7,760 722
-------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.... 323,690 886,032 59,447 13,447
Net asset value of units redeemed or used
to meet contract obligations............. (6,103) (41,836) (46,311) (1,169)
-------- -------- ------- -------
Net increase from unit transactions.......... 317,587 844,196 13,136 12,278
-------- -------- ------- -------
Net increase in net assets................... 337,155 876,552 20,896 13,000
Net assets beginning of period............... 0 0 13,000 0
-------- -------- ------- -------
Net assets end of period*.................... $337,155 $876,552 $33,896 $13,000
======== ======== ======= =======
Units outstanding beginning of period........ 0 0 1,232 0
Units issued during the period............... 31,230 86,711 5,434 1,345
Units redeemed during the period............. (579) (4,011) (3,818) (113)
-------- -------- ------- -------
Units outstanding end of period.............. 30,651 82,700 2,848 1,232
======== ======== ======= =======
- ---------------
*Includes undistributed net investment
income of:................................. $ 8,348 $ 18,492 $ 1,962 $ 431
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-11
<PAGE> 38
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JULY 23, 1997** FOR THE YEAR JULY 23, 1997**
ENDED THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 26,454 $ 17,837 $ 67,233 $ 19,108
Net realized gain (loss) on
investments............................ 1,253 168 966 140
Net increase (decrease) in unrealized
appreciation of investments............ (13,120) (11,007) (57,275) (16,670)
-------- -------- -------- --------
Net increase in net assets resulting from
operations............................... 14,587 6,998 10,924 2,578
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 230,882 205,099 442,750 423,645
Net asset value of units redeemed or used
to meet contract obligations........... (24,242) (2,372) (22,989) (4,593)
-------- -------- -------- --------
Net increase from unit transactions........ 206,640 202,727 419,761 419,052
-------- -------- -------- --------
Net increase in net assets................. 221,227 209,725 430,685 421,630
Net assets beginning of period............. 209,725 0 421,630 0
-------- -------- -------- --------
Net assets end of period*.................. $430,952 $209,725 $852,315 $421,630
======== ======== ======== ========
Units outstanding beginning of period...... 18,628 0 40,391 0
Units issued during the period............. 18,280 18,848 37,287 40,836
Units redeemed during the period........... (1,987) (220) (2,037) (445)
-------- -------- -------- --------
Units outstanding end of period............ 34,921 18,628 75,641 40,391
======== ======== ======== ========
- ---------------
*Includes undistributed net investment
income of:............................... $ 44,291 $ 17,837 $ 86,341 $ 19,108
**Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JULY 23, 1997** FOR THE YEAR JULY 23, 1997**
ENDED THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 11,028 $ 3,248 $ 29,756 $ 1,806
Net realized gain (loss) on
investments............................ 314 (60) (362) 17
Net increase (decrease) in unrealized
appreciation of investments............ 5,752 (2,929) (26,236) (624)
-------- -------- -------- --------
Net increase in net assets resulting from
operations............................... 17,094 259 3,158 1,199
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 120,360 110,383 232,444 157,186
Net asset value of units redeemed or used
to meet contract obligations........... (18,780) (796) (12,715) (1,560)
-------- -------- -------- --------
Net increase from unit transactions........ 101,580 109,587 219,729 155,626
-------- -------- -------- --------
Net increase in net assets................. 118,674 109,846 222,887 156,825
Net assets beginning of period............. 109,846 0 156,825 0
-------- -------- -------- --------
Net assets end of period*.................. $228,520 $109,846 $379,712 $156,825
======== ======== ======== ========
Units outstanding beginning of period...... 12,091 0 14,882 0
Units issued during the period............. 11,665 12,113 21,095 15,033
Units redeemed during the period........... (1,850) (22) (1,189) (151)
-------- -------- -------- --------
Units outstanding end of period............ 21,906 12,091 34,788 14,882
======== ======== ======== ========
- ---------------
*Includes undistributed net investment
income of:............................... $ 14,276 $ 3,248 $ 31,562 $ 1,806
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-12
<PAGE> 39
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------
DREYFUS
-------------------------------------------------------------------
CAPITAL SMALL COMPANY STOCK
APPRECIATION STOCK INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------ ------------------- ------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JULY 23, 1997** FEBRUARY 13, 1998** FOR THE YEAR
ENDED THROUGH THROUGH ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1998
------------ --------------- ------------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income....................... $ 2,695 $ 1,295 $ 1,046 $ 39,642
Net realized gain (loss) on investments..... 2,055 (9) (1,121) 25,220
Net increase (decrease) in unrealized
appreciation of investments............... 68,575 (1,427) 5,929 632,283
-------- -------- -------- ----------
Net increase (decrease) in net assets
resulting from operations................. 73,325 (141) 5,854 697,145
-------- -------- -------- ----------
From unit transactions:
Net proceeds from the issuance of units..... 265,531 157,623 296,497 3,380,123
Net asset value of units redeemed or used to
meet contract obligations................. (14,387) (1,526) (6,672) (187,687)
-------- -------- -------- ----------
Net increase from unit transactions........... 251,144 156,097 289,825 3,192,436
-------- -------- -------- ----------
Net increase in net assets.................... 324,469 155,956 295,679 3,889,581
Net assets beginning of period................ 155,956 0 0 12,969
-------- -------- -------- ----------
Net assets end of period*..................... $480,425 $155,956 $295,679 $3,902,550
======== ======== ======== ==========
Units outstanding beginning of period......... 15,519 0 0 1,244
Units issued during the period................ 22,391 15,672 33,108 306,624
Units redeemed during the period.............. (1,719) (153) (746) (15,878)
-------- -------- -------- ----------
Units outstanding end of period............... 36,191 15,519 32,362 291,990
======== ======== ======== ==========
- ---------------
*Includes undistributed net investment income
of:......................................... $ 3,990 $ 1,295 $ 1,046 $ 40,138
**Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-------------------------------------------------------
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
--------------- -------------------------------------
STOCK HARD WORLDWIDE
INDEX ASSETS BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 23, 1997** JUNE 15, 1998** FEBRUARY 13, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1998 1998
--------------- --------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income....................... $ 496 $ 0 $ 0
Net realized gain (loss) on investments..... 14 (5) 30
Net increase (decrease) in unrealized
appreciation of investments............... 54 (25) 1,464
------- ---- -------
Net increase (decrease) in net assets
resulting from operations................. 564 (30) 1,494
------- ---- -------
From unit transactions:
Net proceeds from the issuance of units..... 13,566 249 19,806
Net asset value of units redeemed or used to
meet contract obligations................. (1,161) (8) (481)
------- ---- -------
Net increase from unit transactions........... 12,405 241 19,325
------- ---- -------
Net increase in net assets.................... 12,969 211 20,819
Net assets beginning of period................ 0 0 0
------- ---- -------
Net assets end of period*..................... $12,969 $211 $20,819
======= ==== =======
Units outstanding beginning of period......... 0 0 0
Units issued during the period................ 1,357 27 1,919
Units redeemed during the period.............. (113) (1) (46)
------- ---- -------
Units outstanding end of period............... 1,244 26 1,873
======= ==== =======
- ---------------
*Includes undistributed net investment income
of:......................................... $ 496 $ 0 $ 0
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-13
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
----------------------------------------------------
VAN ECK WORLDWIDE
INSURANCE TRUST T. ROWE PRICE
------------------------------ -------------------
WORLDWIDE EQUITY
EMERGING MARKETS INCOME
SUBACCOUNT SUBACCOUNT
------------------------------ -------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JULY 23, 1997** NOVEMBER 19, 1998**
ENDED THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998
------------ --------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income.......................... $ 197 $ 0 $ 1,643
Net realized gain (loss) on investments........ (4,445) (61) 12
Net increase (decrease) in unrealized
appreciation of investments.................. (1,662) (3,920) (1,104)
------- ------- -------
Net increase in net assets resulting from
operations..................................... (5,910) (3,981) 551
------- ------- -------
From unit transactions:
Net proceeds from the issuance of units........ 22,510 17,333 49,656
Net asset value of units redeemed or used to
meet contract obligations.................... (3,996) (473) (823)
------- ------- -------
Net increase from unit transactions.............. 18,514 16,860 48,833
------- ------- -------
Net increase in net assets....................... 12,604 12,879 49,384
Net assets beginning of period................... 12,879 0 0
------- ------- -------
Net assets end of period*........................ $25,483 $12,879 $49,384
======= ======= =======
Units outstanding beginning of period............ 1,829 0 0
Units issued during the period................... 4,961 1,883 4,934
Units redeemed during the period................. (1,295) (54) (81)
------- ------- -------
Units outstanding end of period.................. 5,495 1,829 4,853
======= ======= =======
- ---------------
*Includes undistributed net investment income
of:............................................ $ 197 $ 0 $ 1,643
**Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------
T. ROWE PRICE
---------------------------------------------------------------
INTERNATIONAL NEW AMERICA PERSONAL STRATEGY
STOCK GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1998** NOVEMBER 19, 1998** NOVEMBER 19, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1998 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income.......................... $ 235 $ 953 $ 372
Net realized gain (loss) on investments........ (1) 10 3
Net increase (decrease) in unrealized
appreciation of investments.................. 557 4,222 (73)
------- ------- -------
Net increase in net assets resulting from
operations..................................... 791 5,185 302
------- ------- -------
From unit transactions:
Net proceeds from the issuance of units........ 14,497 43,761 8,762
Net asset value of units redeemed or used to
meet contract obligations.................... (239) (726) (145)
------- ------- -------
Net increase from unit transactions.............. 14,258 43,035 8,617
------- ------- -------
Net increase in net assets....................... 15,049 48,220 8,919
Net assets beginning of period................... 0 0 0
------- ------- -------
Net assets end of period*........................ $15,049 $48,220 $ 8,919
======= ======= =======
Units outstanding beginning of period............ 0 0 0
Units issued during the period................... 1,451 4,354 870
Units redeemed during the period................. (24) (72) (14)
------- ------- -------
Units outstanding end of period.................. 1,427 4,282 856
======= ======= =======
- ---------------
*Includes undistributed net investment income
of:............................................ $ 235 $ 953 $ 372
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-14
<PAGE> 41
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 MONY Custom Equity Master) and Corporate Sponsored
Variable Universal Life Insurance Policies. These policies are issued by MONY
America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to the
Corporate Sponsored Variable Universal Life Insurance Policies is presented
here.
There are currently nineteen Corporate Sponsored Variable Universal
Subaccounts within the Variable Account, each invests only in a corresponding
portfolio of the MONY Series Fund, Inc. (the "Fund"), the Enterprise
Accumulation Trust ("Enterprise"), the Dreyfus Investment Fund ("Dreyfus Fund"),
the Dreyfus Stock Index Fund ("Dreyfus Index Fund"), and the Van Eck Worldwide
Insurance Trust ("Van Eck Trust") (collectively, the "Funds"). The subaccounts
of the Corporate Sponsored Variable Universal Life commenced operations during
1997 and 1998. The Funds are registered under the 1940 Act as open end,
diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Funds. Except for the Money Market
Portfolios, net asset values are based upon market 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 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
Universal Life Subaccounts for 1998 aggregated $279,079.
F-15
<PAGE> 42
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 the MONY Series Funds, Inc. at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
MONEY INTERMEDIATE LONG TERM GOVERNMENT
MARKET TERM BOND BOND SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ --------- ----------
<S> <C> <C> <C> <C>
Shares beginning of year:
Shares................................... 843,855 0 0 0
Amount................................... $ 843,855 $ 0 $ 0 $ 0
----------- -------- -------- --------
Shares acquired:
Shares................................... 7,398,449 26,737 23,678 83,672
Amount................................... $ 7,398,449 $297,844 $324,823 $921,018
Shares received for reinvestment of
dividends:
Shares................................... 49,821 714 641 1,748
Amount................................... $ 49,821 $ 7,643 $ 8,348 $ 18,492
Shares redeemed:
Shares................................... (5,606,246) (572) (525) (6,946)
Amount................................... $(5,606,246) $ (6,409) $ (7,166) $(76,287)
----------- -------- -------- --------
Net change:
Shares................................... 1,842,024 26,879 23,794 78,474
Amount................................... $ 1,842,024 $299,078 $326,005 $863,223
----------- -------- -------- --------
Shares end of year:
Shares................................... 2,685,879 26,879 23,794 78,474
Amount................................... $ 2,685,879 $299,078 $326,005 $863,223
=========== ======== ======== ========
</TABLE>
F-16
<PAGE> 43
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ------------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares....................... 370 7,855 10,339 17,774 27,465
Amount....................... $ 12,750 $220,732 $438,300 $112,775 $157,449
-------- -------- -------- -------- --------
Shares acquired:
Shares....................... 1,696 7,762 9,584 17,233 40,190
Amount....................... $ 59,875 $231,687 $443,931 $120,833 $232,846
Shares received for
reinvestment of dividends:
Shares....................... 42 1,010 1,658 1,699 5,435
Amount....................... $ 1,531 $ 26,454 $ 67,233 $ 11,028 $ 29,756
Shares redeemed:
Shares....................... (1,187) (876) (567) (2,801) (2,380)
Amount....................... $(40,498) $(23,794) $(23,204) $(18,939) $(13,479)
-------- -------- -------- -------- --------
Net change:
Shares....................... 551 7,896 10,675 16,131 43,245
Amount....................... $ 20,908 $234,347 $487,960 $112,922 $249,123
-------- -------- -------- -------- --------
Shares end of year:
Shares....................... 921 15,751 21,014 33,905 70,710
Amount....................... $ 33,658 $455,079 $926,260 $225,697 $406,572
======== ======== ======== ======== ========
</TABLE>
F-17
<PAGE> 44
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Dreyfus and Van Eck Worldwide Insurance Trust at cost, at
December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
------------------------------------------- ------------------------------------------
CAPITAL SMALL COMPANY STOCK HARD WORLDWIDE WORLDWIDE
APPRECIATION STOCK INDEX ASSETS BOND EMERGING MARKETS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ---------- --------- --------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.................. 5,590 0 503 0 0 1,171
Amount.................. $157,383 $ 0 $ 12,915 $ 0 $ 0 $16,799
-------- -------- ---------- ---- ------- -------
Shares acquired:
Shares.................. 8,112 20,093 128,278 26 1,747 2,930
Amount.................. $266,483 $298,111 $3,474,518 $268 $19,925 $22,531
Shares received for
reinvestment of
dividends:
Shares.................. 77 68 1,333 0 0 20
Amount.................. $ 2,695 $ 1,046 $ 39,642 $ 0 $ 0 $ 197
Shares redeemed:
Shares.................. (475) (567) (10,110) (3) (52) (542)
Amount.................. $(13,284) $ (9,407) $ (256,862) $(32) $ (570) $(8,462)
-------- -------- ---------- ---- ------- -------
Net change:
Shares.................. 7,714 19,594 119,501 23 1,695 2,408
Amount.................. $255,894 $289,750 $3,257,298 $236 $19,355 $14,266
-------- -------- ---------- ---- ------- -------
Shares end of year:
Shares.................. 13,304 19,594 120,004 23 1,695 3,579
Amount.................. $413,277 $289,750 $3,270,213 $236 $19,355 $31,065
======== ======== ========== ==== ======= =======
</TABLE>
F-18
<PAGE> 45
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in T. Rowe Price at cost, at December 31, 1998 consist of the
following:
<TABLE>
<CAPTION>
EQUITY INTERNATIONAL NEW AMERICA PERSONAL STRATEGY
INCOME STOCK GROWTH BALANCE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ------------- ----------- -----------------
<S> <C> <C> <C> <C>
Shares beginning of year:
Shares................................. 0 0 0 0
Amount................................. $ 0 $ 0 $ 0 $ 0
------- ------- ------- ------
Shares acquired:
Shares................................. 2,539 1,045 1,953 541
Amount................................. $50,044 $14,609 $44,102 $8,831
Shares received for reinvestment of
dividends:
Shares................................. 87 17 43 24
Amount................................. $ 1,643 $ 235 $ 953 $ 372
Shares redeemed:
Shares................................. (61) (25) (47) (13)
Amount................................. $(1,199) $ (352) $(1,057) $ (211)
------- ------- ------- ------
Net change:
Shares................................. 2,565 1,037 1,949 552
Amount................................. $50,488 $14,492 $43,998 $8,992
------- ------- ------- ------
Shares end of year:
Shares................................. 2,565 1,037 1,949 552
Amount................................. $50,488 $14,492 $43,998 $8,992
======= ======= ======= ======
</TABLE>
F-19
<PAGE> 46
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $48,770 $22,942 $117,890 $357,058
======= ======= ======== ========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $ 0 $ 0 $ 0 $ 0
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 48,889 23,955 120,287 357,058
Amount due from MONY............... 0 0 12 34,123
Amount due from MONY Series Fund,
Inc.............................. 14 0 29 29
Amount due from Enterprise
Accumulation Trust............... 0 0 0 0
------- ------- -------- --------
Total assets............... 48,903 23,955 120,328 391,210
------- ------- -------- --------
LIABILITIES
Amount due to MONY................. 14 0 29 29
Amount due to MONY Series Fund,
Inc.............................. 0 0 12 34,123
Amount due to Enterprise
Accumulation Trust............... 0 0 0 0
------- ------- -------- --------
Total liabilities.......... 14 0 41 34,152
------- ------- -------- --------
Net assets......................... $48,889 $23,955 $120,287 $357,058
======= ======= ======== ========
Net assets consist of:
Contractholders' net payments.... $53,947 $26,546 $127,347 $375,789
Cost of insurance withdrawals
(Note 3)....................... (6,646) (3,763) (17,224) (28,108)
Undistributed net investment
income......................... 400 84 3,142 9,377
Accumulated net realized gain on
investments.................... 1,069 75 4,625 0
Unrealized appreciation
(depreciation) of
investments.................... 119 1,013 2,397 0
------- ------- -------- --------
Net assets......................... $48,889 $23,955 $120,287 $357,058
======= ======= ======== ========
Number of units outstanding*....... 4,352 2,101 9,848 32,517
------- ------- -------- --------
Net asset value per unit
outstanding*..................... $ 11.23 $ 11.40 $ 12.21 $ 10.98
======= ======= ======== ========
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------------------------------
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)....... $2,667,340 $1,074,770 $5,115,956 $362,232 $270,366
========== ========== ========== ======== ========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $2,669,685 $1,051,494 $4,894,170 $370,670 $258,665
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 0 0 0 0 0
Amount due from MONY............... 1,826 1,586 4,436 27 66
Amount due from MONY Series Fund,
Inc.............................. 0 0 0 0 0
Amount due from Enterprise
Accumulation Trust............... 592 448 2,693 367 165
---------- ---------- ---------- -------- --------
Total assets............... 2,672,103 1,053,528 4,901,299 371,064 258,896
---------- ---------- ---------- -------- --------
LIABILITIES
Amount due to MONY................. 592 448 2,693 367 165
Amount due to MONY Series Fund,
Inc.............................. 0 0 0 0 0
Amount due to Enterprise
Accumulation Trust............... 1,826 1,586 4,436 27 66
---------- ---------- ---------- -------- --------
Total liabilities.......... 2,418 2,034 7,129 394 231
---------- ---------- ---------- -------- --------
Net assets......................... $2,669,685 $1,051,494 $4,894,170 $370,670 $258,665
========== ========== ========== ======== ========
Net assets consist of:
Contractholders' net payments.... $2,842,682 $1,145,573 $5,297,804 $390,984 $284,680
Cost of insurance withdrawals
(Note 3)....................... (378,183) (166,004) (763,092) (53,413) (36,369)
Undistributed net investment
income......................... 138,113 74,863 438,999 19,092 20,386
Accumulated net realized gain on
investments.................... 64,728 20,338 142,245 5,569 1,669
Unrealized appreciation
(depreciation) of
investments.................... 2,345 (23,276) (221,786) 8,438 (11,701)
---------- ---------- ---------- -------- --------
Net assets......................... $2,669,685 $1,051,494 $4,894,170 $370,670 $258,665
========== ========== ========== ======== ========
Number of units outstanding*....... 193,933 64,856 347,392 30,978 22,083
---------- ---------- ---------- -------- --------
Net asset value per unit
outstanding*..................... $ 13.77 $ 16.21 $ 14.09 $ 11.97 $ 11.71
========== ========== ========== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
27
<PAGE> 47
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income......................... $13,809 $ 7,362 $ 369 $ 844 $19,262 $ 1,463
Mortality and expense risk charges (Note
3).................................... (522) (278) (44) (92) (521) (169)
------- ------- ----- ------- ------- -------
Net investment income................... 13,287 7,084 325 752 18,741 1,294
------- ------- ----- ------- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................... 9,573 7,328 548 1,209 4,025 7,187
Cost of shares sold................... (6,043) (6,176) (505) (1,052) (2,713) (7,187)
------- ------- ----- ------- ------- -------
Net realized gain on investments........ 3,530 1,152 43 157 1,312 0
Net increase (decrease) in unrealized
appreciation of investments........... 2,645 (3,246) 109 481 (1,726) 0
------- ------- ----- ------- ------- -------
Net realized and unrealized gain (loss)
on investments........................ 6,175 (2,094) 152 638 (414) 0
------- ------- ----- ------- ------- -------
Net increase in net assets resulting
from operations....................... $19,462 $ 4,990 $ 477 $ 1,390 $18,327 $ 1,294
======= ======= ===== ======= ======= =======
</TABLE>
See notes to financial statements.
28
<PAGE> 48
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYEQUITY MASTER
----------------------------------------------------
MONY SERIES FUND, INC.
----------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Dividend income.................... $ 587 $ 199 $ 2,834 $ 7,447
Mortality and expense risk charges
(Note 3)......................... (155) (115) (582) (1,083)
-------- ------- -------- -----------
Net investment income.............. 432 84 2,252 6,364
-------- ------- -------- -----------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales.............. 56,069 4,970 75,552 2,884,707
Cost of shares sold.............. (55,032) (4,922) (70,885) (2,884,707)
-------- ------- -------- -----------
Net realized gain (loss) on
investments...................... 1,037 48 4,667 0
Net increase (decrease) in
unrealized appreciation of
investments...................... (183) 936 95 0
-------- ------- -------- -----------
Net realized and unrealized gain
(loss) on investments............ 854 984 4,762 0
-------- ------- -------- -----------
Net increase in net assets
resulting from operations........ $ 1,286 $ 1,068 $ 7,014 $ 6,364
======== ======= ======== ===========
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------------------------------
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.................... $115,911 $ 61,111 $ 366,308 $ 16,471 $ 17,306
Mortality and expense risk charges
(Note 3)......................... (14,367) (4,630) (27,327) (1,860) (1,289)
-------- --------- --------- -------- --------
Net investment income.............. 101,544 56,481 338,981 14,611 16,017
-------- --------- --------- -------- --------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales.............. 435,132 222,873 960,886 78,120 55,473
Cost of shares sold.............. (403,167) (213,828) (873,457) (79,021) (55,495)
-------- --------- --------- -------- --------
Net realized gain (loss) on
investments...................... 31,965 9,045 87,429 (901) (22)
Net increase (decrease) in
unrealized appreciation of
investments...................... 1,665 (23,869) (225,085) 18,656 (12,950)
-------- --------- --------- -------- --------
Net realized and unrealized gain
(loss) on investments............ 33,630 (14,824) (137,656) 17,755 (12,972)
-------- --------- --------- -------- --------
Net increase in net assets
resulting from operations........ $135,174 $ 41,657 $ 201,325 $ 32,366 $ 3,045
======== ========= ========= ======== ========
</TABLE>
See notes to financial statements.
29
<PAGE> 49
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
STRATEGIST
-------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM BOND
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT SUBACCOUNT
------------------ ------------------ ----------------- -----------------
1998 1997 1998 1997 1998 1997 1998 1997
------- -------- ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $13,287 $ 4,971 $ 7,084 $ 3,937 $ 325 $ 343 $ 752 $ 752
Net realized gain on
investments.................... 3,530 5,544 1,152 3,331 43 27 157 66
Net increase (decrease) in
unrealized appreciation of
investments.................... 2,645 7,657 (3,246) 3,274 109 97 481 884
------- -------- ------- -------- ------ ------ ------- -------
Net increase in net assets
resulting from operations........ 19,462 18,172 4,990 10,542 477 467 1,390 1,702
------- -------- ------- -------- ------ ------ ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 8,754 15,902 7,517 10,731 407 407 646 618
Net asset value of units redeemed
or used to meet contract
obligations.................... (7,677) (13,078) (6,714) (11,293) (504) (463) (1,117) (1,039)
------- -------- ------- -------- ------ ------ ------- -------
Net increase (decrease) from unit
transactions..................... 1,077 2,824 803 (562) (97) (56) (471) (421)
------- -------- ------- -------- ------ ------ ------- -------
Net increase (decrease) in net
assets........................... 20,539 20,996 5,793 9,980 380 411 919 1,281
Net assets beginning of year....... 78,828 57,832 43,065 33,085 7,061 6,650 14,885 13,604
------- -------- ------- -------- ------ ------ ------- -------
Net assets end of year*............ $99,367 $ 78,828 $48,858 $ 43,065 $7,441 $7,061 $15,804 $14,885
======= ======== ======= ======== ====== ====== ======= =======
Units outstanding beginning of
year............................. 1,811 1,726 962 965 331 333 571 588
Units issued during the year....... 187 428 162 282 19 20 24 26
Units redeemed during the year..... (168) (343) (149) (285) (23) (22) (41) (43)
------- -------- ------- -------- ------ ------ ------- -------
Units outstanding end of year...... 1,830 1,811 975 962 327 331 554 571
======= ======== ======= ======== ====== ====== ======= =======
- ---------------
* Includes undistributed net
investment income of: $27,383 $ 14,096 $19,851 $ 12,767 $9,477 $9,152 $27,437 $26,685
<CAPTION>
STRATEGIST
-------------------------------------
MONY SERIES FUND, INC.
-------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------- -----------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $18,741 $ 5,074 $ 1,294 $ 1,394
Net realized gain on
investments.................... 1,312 1,485 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... (1,726) 9,311 0 0
------- ------- ------- -------
Net increase in net assets
resulting from operations........ 18,327 15,870 1,294 1,394
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,164 2,162 242 967
Net asset value of units redeemed
or used to meet contract
obligations.................... (3,504) (3,376) (7,011) (2,652)
------- ------- ------- -------
Net increase (decrease) from unit
transactions..................... (1,340) (1,214) (6,769) (1,685)
------- ------- ------- -------
Net increase (decrease) in net
assets........................... 16,987 14,656 (5,475) (291)
Net assets beginning of year....... 80,473 65,817 30,472 30,763
------- ------- ------- -------
Net assets end of year*............ $97,460 $80,473 $24,997 $30,472
======= ======= ======= =======
Units outstanding beginning of
year............................. 2,366 2,404 1,767 1,867
Units issued during the year....... 58 69 14 59
Units redeemed during the year..... (94) (107) (396) (159)
------- ------- ------- -------
Units outstanding end of year...... 2,330 2,366 1,385 1,767
======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $41,639 $22,898 $26,572 $25,278
</TABLE>
See notes to financial statements.
30
<PAGE> 50
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
--------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM
SECURITIES TERM BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------------- --------------------------- ---------------------------
FOR THE PERIOD
FOR THE YEAR MARCH 24, 1997** FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED THROUGH ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ----------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 432 $ (32) $ 84 $ 0 $ 2,252 $ 892
Net realized gain (loss) on
investments.................... 1,037 32 48 27 4,667 (42)
Net increase (decrease) in
unrealized appreciation of
investments.................... (183) 302 936 77 95 2,367
------- ------- ------- ------ -------- -------
Net increase in net assets
resulting from operations........ 1,286 302 1,068 104 7,014 3,217
------- ------- ------- ------ -------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 65,090 13,868 25,294 2,923 117,542 28,471
Net asset value of units redeemed
or used to meet contract
obligations.................... (30,558) (1,099) (4,660) (813) (45,844) (2,195)
------- ------- ------- ------ -------- -------
Net increase from unit
transactions..................... 34,532 12,769 20,634 2,110 71,698 26,276
------- ------- ------- ------ -------- -------
Net increase in net assets......... 35,818 13,071 21,702 2,214 78,712 29,493
Net assets beginning of period..... 13,071 0 2,253 39 41,575 12,082
------- ------- ------- ------ -------- -------
Net assets end of period*.......... $48,889 $13,071 $23,955 $2,253 $120,287 $41,575
======= ======= ======= ====== ======== =======
Units outstanding beginning of
period........................... 1,234 0 211 4 3,719 1,217
Units issued during the period..... 7,967 1,336 2,310 286 11,923 2,712
Units redeemed during the period... (4,849) (102) (420) (79) (5,794) (210)
------- ------- ------- ------ -------- -------
Units outstanding end of period.... 4,352 1,234 2,101 211 9,848 3,719
======= ======= ======= ====== ======== =======
- ---------------
* Includes undistributed net
investment income (loss) of: $ 400 $ (32) $ 84 $ 0 $ 3,142 $ 890
** Commencement of operations.
<CAPTION>
MONYEQUITY MASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
MONEY
MARKET
SUBACCOUNT
---------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1998 1997
------------ ------------
<S> <C> <C>
From operations:
Net investment income (loss)..... $ 6,364 $ 2,744
Net realized gain (loss) on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
----------- -----------
Net increase in net assets
resulting from operations........ 6,364 2,744
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,471,685 1,828,075
Net asset value of units redeemed
or used to meet contract
obligations.................... (2,290,641) (1,728,100)
----------- -----------
Net increase from unit
transactions..................... 181,044 99,975
----------- -----------
Net increase in net assets......... 187,408 102,719
Net assets beginning of period..... 169,650 66,931
----------- -----------
Net assets end of period*.......... $ 357,058 $ 169,650
=========== ===========
Units outstanding beginning of
period........................... 16,142 6,655
Units issued during the period..... 237,863 177,168
Units redeemed during the period... (221,488) (167,681)
----------- -----------
Units outstanding end of period.... 32,517 16,142
=========== ===========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 9,377 $ 3,013
** Commencement of operations.
</TABLE>
See notes to financial statements.
31
<PAGE> 51
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYEQUITY MASTER
-------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- --------------------- -----------------------
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 101,544 $ 35,882 $ 56,481 $ 18,121 $ 338,981 $ 98,832
Net realized gain (loss) on
investments.................... 31,965 32,926 9,045 11,289 87,429 54,871
Net increase (decrease) in
unrealized appreciation of
investments.................... 1,665 1,377 (23,869) 583 (225,085) 5,802
---------- ---------- ---------- -------- ---------- ----------
Net increase in net assets
resulting from operations........ 135,174 70,185 41,657 29,993 201,325 159,505
---------- ---------- ---------- -------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,691,977 1,163,129 952,775 210,986 3,108,506 2,299,829
Net asset value of units redeemed
or used to meet contract
obligations.................... (333,417) (111,523) (165,227) (35,444) (766,917) (235,234)
---------- ---------- ---------- -------- ---------- ----------
Net increase from unit
transactions..................... 1,358,560 1,051,606 787,548 175,542 2,341,589 2,064,595
---------- ---------- ---------- -------- ---------- ----------
Net increase in net assets......... 1,493,734 1,121,791 829,205 205,535 2,542,914 2,224,100
Net assets beginning of year....... 1,175,951 54,160 222,289 16,754 2,351,256 127,156
---------- ---------- ---------- -------- ---------- ----------
Net assets end of year*............ $2,669,685 $1,175,951 $1,051,494 $222,289 $4,894,170 $2,351,256
========== ========== ========== ======== ========== ==========
Units outstanding beginning of
year............................. 93,188 5,358 14,918 1,611 178,819 11,951
Units issued during the year....... 127,117 97,340 61,712 15,917 225,219 185,804
Units redeemed during the year..... (26,372) (9,510) (11,774) (2,610) (56,646) (18,936)
---------- ---------- ---------- -------- ---------- ----------
Units outstanding end of year...... 193,933 93,188 64,856 14,918 347,392 178,819
========== ========== ========== ======== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 138,113 $ 36,569 $ 74,863 $ 18,382 $ 438,999 $ 100,018
<CAPTION>
MONYEQUITY MASTER
----------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------- ------------------
1998 1997 1998 1997
-------- -------- -------- -------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $ 14,611 $ 4,431 $ 16,017 $ 4,368
Net realized gain (loss) on
investments.................... (901) 6,470 (22) 1,691
Net increase (decrease) in
unrealized appreciation of
investments.................... 18,656 (10,379) (12,950) 1,248
-------- -------- -------- -------
Net increase in net assets
resulting from operations........ 32,366 522 3,045 7,307
-------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 217,747 175,743 192,334 98,004
Net asset value of units redeemed
or used to meet contract
obligations.................... (50,680) (19,488) (34,511) (7,883)
-------- -------- -------- -------
Net increase from unit
transactions..................... 167,067 156,255 157,823 90,121
-------- -------- -------- -------
Net increase in net assets......... 199,433 156,777 160,868 97,428
Net assets beginning of year....... 171,237 14,460 97,797 369
-------- -------- -------- -------
Net assets end of year*............ $370,670 $171,237 $258,665 $97,797
======== ======== ======== =======
Units outstanding beginning of
year............................. 16,311 1,439 8,584 37
Units issued during the year....... 19,541 16,654 16,309 9,272
Units redeemed during the year..... (4,874) (1,782) (2,810) (725)
-------- -------- -------- -------
Units outstanding end of year...... 30,978 16,311 22,083 8,584
======== ======== ======== =======
- ---------------
* Includes undistributed net
investment income of: $ 19,092 $ 4,481 $ 20,386 $ 4,369
</TABLE>
See notes to financial statements.
32
<PAGE> 52
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 MONY Life Insurance Company
("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 (Stategist) and Variable
Universal Life Insurance policies (MONYEquity Master). These policies are issued
by MONY.
There are currently six Strategist subaccounts and nine MONYEquity Master
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 MONYEquity Master 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 hereinafter and should be read in
conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of each portfolio. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolios, the net
asset values are based on amortized cost of the securities held which
approximates value.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for all
subaccounts for 1998 aggregated $1,101,410.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of .60 percent (for the Strategist
Subaccounts) and .75 percent (for the MONYEquity Master Subaccounts) of the
average daily net assets of the subaccounts. As MONY America, a wholly-owned
subsidiary of MONY, acts as investment adviser to the Fund, it receives amounts
paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
33
<PAGE> 53
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares............................ 2,184 1,590 635 1,091 3,904 30,472
Amount............................ $59,712 $34,880 $6,642 $12,694 $57,696 $30,472
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................ 293 310 37 47 116 249
Amount............................ $10,128 $ 7,853 $ 407 $ 646 $ 2,164 $ 249
Shares received for reinvestment of
dividends:
Shares............................ 408 285 34 65 1,090 1,463
Amount............................ $13,809 $ 7,362 $ 369 $ 844 $19,262 $ 1,463
Shares redeemed:
Shares............................ (285) (302) (49) (88) (216) (7,187)
Amount............................ $(6,043) $(6,176) $ (505) $(1,052) $(2,713) $(7,187)
------- ------- ------ ------- ------- -------
Net change:
Shares............................ 416 293 22 24 990 (5,475)
Amount............................ $17,894 $ 9,039 $ 271 $ 438 $18,713 $(5,475)
------- ------- ------ ------- ------- -------
Shares end of year:
Shares............................ 2,600 1,883 657 1,115 4,894 24,997
Amount............................ $77,606 $43,919 $6,913 $13,132 $76,409 $24,997
======= ======= ====== ======= ======= =======
</TABLE>
34
<PAGE> 54
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 1,201 203 3,048 169,650
Amount............. $ 12,769 $ 2,176 $ 39,273 $ 169,650
-------- ------- -------- -----------
Shares acquired:
Shares............. 8,162 2,341 10,611 3,064,668
Amount............. $ 90,446 $25,489 $146,668 $ 3,064,668
Shares received for
reinvestment of
dividends:
Shares............. 55 19 218 7,447
Amount............. $ 587 $ 199 $ 2,834 $ 7,447
Shares redeemed:
Shares............. (5,040) (448) (5,388) (2,884,707)
Amount............. $(55,032) $(4,922) $(70,885) $(2,884,707)
-------- ------- -------- -----------
Net change:
Shares............. 3,177 1,912 5,441 187,408
Amount............. $ 36,001 $20,766 $ 78,617 $ 187,408
-------- ------- -------- -----------
Shares end of year:
Shares............. 4,378 2,115 8,489 357,058
Amount............. $ 48,770 $22,942 $117,890 $ 357,058
======== ======= ======== ===========
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 33,513 8,326 57,657 27,708 17,128
Amount............. $1,175,271 $ 221,696 $2,347,957 $181,455 $ 96,548
---------- ---------- ---------- -------- --------
Shares acquired:
Shares............. 47,658 35,804 76,676 36,659 37,841
Amount............. $1,779,325 $1,005,791 $3,275,148 $243,327 $212,007
Shares received for
reinvestment of
dividends:
Shares............. 3,160 2,333 9,031 2,538 3,161
Amount............. $ 115,911 $ 61,111 $ 366,308 $ 16,471 $ 17,306
Shares redeemed:
Shares............. (11,824) (8,031) (22,699) (11,910) (9,961)
Amount............. $ (403,167) $ (213,828) $ (873,457) $(79,021) $(55,495)
---------- ---------- ---------- -------- --------
Net change:
Shares............. 38,994 30,106 63,008 27,287 31,041
Amount............. $1,492,069 $ 853,074 $2,767,999 $180,777 $173,818
---------- ---------- ---------- -------- --------
Shares end of year:
Shares............. 72,507 38,432 120,665 54,995 48,169
Amount............. $2,667,340 $1,074,770 $5,115,956 $362,232 $270,366
========== ========== ========== ======== ========
</TABLE>
35
<PAGE> 55
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account L -- Strategist/MONYEquity Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account L (comprising, respectively,
Strategist's Equity Growth, Equity Income, Intermediate Term Bond, Long Term
Bond, Diversified, and Money Market Subaccounts; and MONYEquity Master's
Government Securities, Intermediate Term Bond, Long Term Bond, Money Market,
Equity, Small Cap, Managed, International Growth, and High Yield Bond
Subaccounts) at December 31, 1998, the results of each of their operations for
the year then ended and the changes in each of their net assets for the periods
presented, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of MONY Life Insurance Company's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1998 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
36
<PAGE> 56
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYVESTOR
-----------------------------------------------------------------
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)...................... $ 95,093 $106,577 $33,518 $122,700 $55,616
======== ======== ======= ======== =======
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. $157,622 $131,943 $36,069 $174,019 $55,616
-------- -------- ------- -------- -------
Net assets.............................. $157,622 $131,943 $36,069 $174,019 $55,616
======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net payments................... $ 20,607 $ (5,131) $17,309 $ 34,074 $35,657
Cost of insurance withdrawals (Note 3).......... (8,895) (13,298) (6,501) (14,816) (3,468)
Undistributed net investment income............. 44,989 80,692 23,830 87,890 23,427
Accumulated net realized gain (loss) on
investments.................................. 38,392 44,314 (1,120) 15,552 0
Unrealized appreciation of investments.......... 62,529 25,366 2,551 51,319 0
-------- -------- ------- -------- -------
Net assets........................................ $157,622 $131,943 $36,069 $174,019 $55,616
======== ======== ======= ======== =======
Number of units outstanding*...................... 2,915 2,881 1,722 4,353 3,352
-------- -------- ------- -------- -------
Net asset value per unit outstanding*............. $ 54.07 $ 45.80 $ 20.94 $ 39.98 $ 16.59
======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
37
<PAGE> 57
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYVESTOR
-----------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.......................... $22,560 $20,343 $ 1,819 $34,057 $ 2,811
Mortality and expense risk charges (Note
3)..................................... (1,200) (1,081) (303) (1,310) (463)
------- ------- ------- ------- -------
Net investment income.................... 21,360 19,262 1,516 32,747 2,348
------- ------- ------- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................... 5,837 4,680 1,740 1,729 1,141
Cost of shares sold.................... (1,974) (3,095) (1,677) (1,139) (1,141)
------- ------- ------- ------- -------
Net realized gain on investments......... 3,863 1,585 63 590 0
Net increase (decrease) in unrealized
appreciation of investments............ 6,332 (6,820) 692 (1,150) 0
------- ------- ------- ------- -------
Net realized and unrealized gain (loss)
on investments......................... 10,195 (5,235) 755 (560) 0
------- ------- ------- ------- -------
Net increase in net assets resulting from
operations............................. $31,555 $14,027 $ 2,271 $32,187 $ 2,348
======= ======= ======= ======= =======
</TABLE>
See notes to financial statements.
38
<PAGE> 58
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYVESTOR
-----------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM DIVERSIFIED
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT SUBACCOUNT
------------------- ------------------- ----------------- -------------------
1998 1997 1998 1997 1998 1997 1998 1997
-------- -------- -------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............. $ 21,360 $ 8,385 $ 19,262 $ 10,671 $ 1,516 $ 1,621 $ 32,747 $ 8,592
Net realized gain (loss) on
investments..................... 3,863 4,153 1,585 1,148 63 (60) 590 2,091
Net increase (decrease) in
unrealized appreciation of
investments..................... 6,332 17,472 (6,820) 16,402 692 671 (1,150) 16,916
-------- -------- -------- -------- ------- ------- -------- --------
Net increase in net assets
resulting from operations......... 31,555 30,010 14,027 28,221 2,271 2,232 32,187 27,599
-------- -------- -------- -------- ------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units........................... 561 324 443 0 534 462 450 646
Net asset value of units redeemed
or used to meet contract
obligations..................... (4,521) (1,805) (3,645) (884) (1,418) (1,168) (428) (1,825)
-------- -------- -------- -------- ------- ------- -------- --------
Net increase (decrease) from unit
transactions...................... (3,960) (1,481) (3,202) (884) (884) (706) 22 (1,179)
-------- -------- -------- -------- ------- ------- -------- --------
Net increase in net assets......... 27,595 28,529 10,825 27,337 1,387 1,526 32,209 26,420
Net assets beginning of year....... 130,027 101,498 121,118 93,781 34,682 33,156 141,810 115,390
-------- -------- -------- -------- ------- ------- -------- --------
Net assets end of year*............ $157,622 $130,027 $131,943 $121,118 $36,069 $34,682 $174,019 $141,810
======== ======== ======== ======== ======= ======= ======== ========
Units outstanding beginning of
year.............................. 2,993 3,027 2,954 2,978 1,765 1,802 4,351 4,388
Units issued during the year....... 12 21 8 0 21 27 10 32
Units redeemed during the year..... (90) (55) (81) (24) (64) (64) (8) (69)
-------- -------- -------- -------- ------- ------- -------- --------
Units outstanding end of year...... 2,915 2,993 2,881 2,954 1,722 1,765 4,353 4,351
======== ======== ======== ======== ======= ======= ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 44,989 $ 23,629 $ 80,692 $ 61,430 $23,830 $22,314 $ 87,890 $ 55,143
<CAPTION>
MONYVESTOR
-----------------
MONEY MARKET
SUBACCOUNT
-----------------
1998 1997
------- -------
<S> <C> <C>
From operations:
Net investment income............. $ 2,348 $ 2,268
Net realized gain (loss) on
investments..................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments..................... 0 0
------- -------
Net increase in net assets
resulting from operations......... 2,348 2,268
------- -------
From unit transactions:
Net proceeds from the issuance of
units........................... 389 177
Net asset value of units redeemed
or used to meet contract
obligations..................... (671) (518)
------- -------
Net increase (decrease) from unit
transactions...................... (282) (341)
------- -------
Net increase in net assets......... 2,066 1,927
Net assets beginning of year....... 53,550 51,623
------- -------
Net assets end of year*............ $55,616 $53,550
======= =======
Units outstanding beginning of
year.............................. 3,369 3,391
Units issued during the year....... 21 12
Units redeemed during the year..... (38) (34)
------- -------
Units outstanding end of year...... 3,352 3,369
======= =======
- ---------------
* Includes undistributed net
investment income of: $23,427 $21,079
</TABLE>
See notes to financial statements.
39
<PAGE> 59
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 MONY Life Insurance Company ("MONY").
There are currently six MONYVestor 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 hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of the respective Funds' 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 valuations of the securities
held in each of the corresponding portfolios of the Fund. For the Money Market
Portfolio, the net asset value is based on amortized cost of the securities held
which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained for any premium taxes.
The cost of insurance, administration charges, and, if applicable, deferred
premium taxes are deducted monthly from the cash value of the contract to
compensate MONY America. These deductions are treated as contractholder
redemptions by the Variable Account. The amount deducted for all subaccounts for
1998 aggregated $1,797.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.85 percent of average daily
net assets of the subaccounts. As investment adviser to the Fund, it receives
amounts paid by the Fund for those services.
40
<PAGE> 60
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1998 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..................................... 3,604 4,469 3,119 6,881 53,550
Amount..................................... $73,830 $ 88,932 $32,823 $ 89,341 $53,550
------- -------- ------- -------- -------
Shares acquired:
Shares..................................... 22 17 49 27 396
Amount..................................... $ 677 $ 397 $ 553 $ 441 $ 396
Shares received for reinvestment of
dividends:
Shares..................................... 666 788 170 1,927 2,811
Amount..................................... $22,560 $ 20,343 $ 1,819 $ 34,057 $ 2,811
Shares redeemed:
Shares..................................... (166) (189) (155) (95) (1,141)
Amount..................................... $(1,974) $ (3,095) $(1,677) $ (1,139) $(1,141)
------- -------- ------- -------- -------
Net change:
Shares..................................... 522 616 64 1,859 2,066
Amount..................................... $21,263 $ 17,645 $ 695 $ 33,359 $ 2,066
------- -------- ------- -------- -------
Shares end of year:
Shares..................................... 4,126 5,085 3,183 8,740 55,616
Amount..................................... $95,093 $106,577 $33,518 $122,700 $55,616
======= ======== ======= ======== =======
</TABLE>
41
<PAGE> 61
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:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account S (comprising the Equity
Growth, Equity Income, Intermediate Term Bond, Diversified, and Money Market
Subaccounts) at December 31, 1998, the results of each of their operations for
the year then ended and the changes in each of their net assets for each of the
two years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of MONY
Life Insurance Company of America's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
42
<PAGE> 62
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYVESTOR
-------------------------
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- -----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)................................ $43,306 $ 75,790
======= =========
Investments in MONY Series Fund, Inc at net asset value
(Note 2).................................................. $65,923 $ 103,663
------- ---------
Net assets.................................................. $65,923 $ 103,663
======= =========
Net assets consist of:
Contractholders' net payments............................. $16,607 $(141,710)
Cost of insurance withdrawals (Note 3).................... (1,904) (66,422)
Undistributed net investment income....................... 25,565 170,050
Accumulated net realized gains on investments............. 3,038 113,872
Unrealized appreciation of investments.................... 22,617 27,873
------- ---------
Net assets.................................................. $65,923 $ 103,663
======= =========
Number of units outstanding*................................ 1,525 2,774
------- ---------
Net asset value per unit outstanding*....................... $ 43.24 $ 37.37
======= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
43
<PAGE> 63
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYVESTOR
-------------------------
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- -----------
<S> <C> <C>
Dividend income............................................. $ 9,912 $20,366
Mortality and expense risk charges (Note 3)................. (533) (791)
------- -------
Net investment income....................................... 9,379 19,575
------- -------
Realized and unrealized gain (loss) on investments (Note 2):
Proceeds from sales....................................... 533 1,158
Cost of shares sold....................................... (292) (798)
------- -------
Net realized gain on investments............................ 241 360
Net decrease in unrealized appreciation of investments...... (2,720) (756)
------- -------
Net realized and unrealized loss on investments............. (2,479) (396)
------- -------
Net increase in net assets resulting from operations........ $ 6,900 $19,179
======= =======
</TABLE>
See notes to financial statements.
44
<PAGE> 64
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYVESTOR
------------------------------------------
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
------------------ --------------------
1998 1997 1998 1997
------- ------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income..................................... $ 9,379 $ 5,154 $ 19,575 $ 5,088
Net realized gain on investments.......................... 241 238 360 376
Net increase (decrease) in unrealized appreciation of
investments............................................. (2,720) 8,275 (756) 10,931
------- ------- -------- --------
Net increase in net assets resulting from operations........ 6,900 13,667 19,179 16,395
------- ------- -------- --------
From unit transactions:
Net asset value of units redeemed or used to meet contract
obligations............................................. 0 (42) (367) (393)
------- ------- -------- --------
Net decrease from unit transactions......................... 0 (42) (367) (393)
------- ------- -------- --------
Net increase in net assets.................................. 6,900 13,625 18,812 16,002
Net assets beginning of year................................ 59,023 45,398 84,851 68,849
------- ------- -------- --------
Net assets end of year*..................................... $65,923 $59,023 $103,663 $ 84,851
======= ======= ======== ========
Units outstanding beginning of year......................... 1,525 1,526 2,785 2,800
Units redeemed during the year.............................. 0 (1) (11) (15)
------- ------- -------- --------
Units outstanding end of year............................... 1,525 1,525 2,774 2,785
======= ======= ======== ========
- ---------------
* Includes undistributed net investment income of: $25,565 $16,186 $170,050 $150,475
</TABLE>
See notes to financial statements.
45
<PAGE> 65
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 MONY Life Insurance Company
("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 MONYVestor 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 hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective Funds' 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 the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained for any premium taxes.
The cost of insurance, administration charges, and, if applicable, deferred
premium taxes are deducted monthly from the cash value of the contract to
compensate MONY. These deductions are treated as contractholder redemptions by
the Variable Account. The amount deducted for all subaccounts for 1998
aggregated $367.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.85 percent of average daily net assets
of the subaccounts. 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.
46
<PAGE> 66
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of year:
Shares.................................................... 2,177 4,117
Amount.................................................... $33,686 $56,222
------- -------
Shares received for reinvestment of dividends:
Shares.................................................... 384 1,153
Amount.................................................... $ 9,912 $20,366
Shares redeemed:
Shares.................................................... (21) (63)
Amount.................................................... $ (292) $ (798)
------- -------
Net change:
Shares.................................................... 363 1,090
Amount.................................................... $ 9,620 $19,568
------- -------
Shares end of year:
Shares.................................................... 2,540 5,207
Amount.................................................... $43,306 $75,790
======= =======
</TABLE>
47
<PAGE> 67
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account S:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account S (comprising the Equity Income
and Diversified Subaccounts) at December 31, 1998, the results of each of their
operations for the year then ended and the changes in each of their net assets
for each of the two years in the period then ended, in conformity with generally
accepted accounting principles. These financial statements are the
responsibility of MONY Life Insurance 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
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
48
<PAGE> 68
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------
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)........... $1,095,208 $ 990,590 $45,468,273 $93,501,360 $1,274,454 $287,969,575
========== ========== =========== =========== ========== ============
Investments in MONY
Series Fund, Inc,
at net asset value
(Note 2)........... $1,576,054 $1,284,330 $47,321,829 $99,244,109 $1,570,366 $287,969,575
Amount due from MONY
America............ 0 0 811 1,689 0 776,721
Amount due from MONY
Series Fund,
Inc................ 6 0 3,715 8,697 24 385,941
---------- ---------- ----------- ----------- ---------- ------------
Total assets......... 1,576,060 1,284,330 47,326,355 99,254,495 1,570,390 289,132,237
---------- ---------- ----------- ----------- ---------- ------------
LIABILITIES
Amount due to MONY
America............ 6 0 3,715 8,697 24 385,941
Amount due to MONY
Series Fund,
Inc................ 0 0 811 1,689 0 776,721
---------- ---------- ----------- ----------- ---------- ------------
Total liabilities.... 6 0 4,526 10,386 24 1,162,662
---------- ---------- ----------- ----------- ---------- ------------
Net assets........... $1,576,054 $1,284,330 $47,321,829 $99,244,109 $1,570,366 $287,969,575
========== ========== =========== =========== ========== ============
Net assets consist
of:
Contractholders'
net payments..... $ 34,828 $(242,836) $37,233,714 $75,575,668 $ (453,060) $263,648,620
Undistributed net
investment
income........... 453,653 705,765 7,506,305 13,658,824 1,053,187 24,320,955
Accumulated net
realized gain on
investments...... 606,727 527,661 728,254 4,266,868 674,327 0
Unrealized
appreciation of
investments...... 480,846 293,740 1,853,556 5,742,749 295,912 0
---------- ---------- ----------- ----------- ---------- ------------
Net assets........... $1,576,054 $1,284,330 $47,321,829 $99,244,109 $1,570,366 $287,969,575
========== ========== =========== =========== ========== ============
Number of units
outstanding*....... 31,847 30,115 2,414,529 4,000,596 42,575 18,280,159
---------- ---------- ----------- ----------- ---------- ------------
Net asset value per
unit
outstanding*....... $ 49.49 $ 42.65 $ 19.60 $ 24.81 $ 36.88 $ 15.75
========== ========== =========== =========== ========== ============
<CAPTION>
MONYMASTER VALUEMASTER
----------- -----------
MONY SERIES FUND, INC.
-------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
----------- -----------
<S> <C> <C>
ASSETS
Investments at cost
(Note 4)........... $44,070,585 $1,960,142
=========== ==========
Investments in MONY
Series Fund, Inc,
at net asset value
(Note 2)........... $45,153,237 $1,960,142
Amount due from MONY
America............ 218 0
Amount due from MONY
Series Fund,
Inc................ 1,694 0
----------- ----------
Total assets......... 45,155,149 1,960,142
----------- ----------
LIABILITIES
Amount due to MONY
America............ 1,694 0
Amount due to MONY
Series Fund,
Inc................ 218 0
----------- ----------
Total liabilities.... 1,912 0
----------- ----------
Net assets........... $45,153,237 $1,960,142
=========== ==========
Net assets consist
of:
Contractholders'
net payments..... $42,017,063 $ 794,806
Undistributed net
investment
income........... 1,002,007 1,165,336
Accumulated net
realized gain on
investments...... 1,051,515 0
Unrealized
appreciation of
investments...... 1,082,652 0
----------- ----------
Net assets........... $45,153,237 $1,960,142
=========== ==========
Number of units
outstanding*....... 3,591,602 136,239
----------- ----------
Net asset value per
unit
outstanding*....... $ 12.57 $ 14.39
=========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
49
<PAGE> 69
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
--------------------------------------------------------------------------
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)...... $476,064,032 $326,802,737 $2,160,672,479 $70,442,620 $90,084,355
============ ============ ============== =========== ===========
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $520,330,406 $343,222,741 $2,337,327,351 $72,940,289 $86,600,128
Amount due from MONY America...... 65,594 30,660 134,076 14,426 7,179
Amount due from Enterprise
Accumulation Trust.............. 65,199 44,373 398,823 6,653 2,134
------------ ------------ -------------- ----------- -----------
Total assets............ 520,461,199 343,297,774 2,337,860,250 72,961,368 86,609,441
------------ ------------ -------------- ----------- -----------
LIABILITIES
Amount due to MONY America........ 65,199 44,373 398,823 6,653 2,134
Amount due to Enterprise
Accumulation Trust.............. 65,594 30,660 134,076 14,426 7,179
------------ ------------ -------------- ----------- -----------
Total liabilities....... 130,793 75,033 532,899 21,079 9,313
------------ ------------ -------------- ----------- -----------
Net assets........................ $520,330,406 $343,222,741 $2,337,327,351 $72,940,289 $86,600,128
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $324,570,335 $201,915,001 $1,155,833,644 $58,692,034 $76,764,119
Undistributed net investment
income....................... 36,377,321 56,458,082 319,223,689 4,292,243 11,920,109
Accumulated net realized gain on
investments.................. 115,116,376 68,429,654 685,615,146 7,458,343 1,400,127
Unrealized appreciation
(depreciation) of
investments.................. 44,266,374 16,420,004 176,654,872 2,497,669 (3,484,227)
------------ ------------ -------------- ----------- -----------
Net assets........................ $520,330,406 $343,222,741 $2,337,327,351 $72,940,289 $86,600,128
============ ============ ============== =========== ===========
Number of units outstanding*...... 11,629,793 8,392,405 41,556,499 4,954,694 5,868,866
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 44.74 $ 40.90 $ 56.24 $ 14.72 $ 14.76
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
50
<PAGE> 70
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
VALUEMASTER
--------------------------------------------------
OCC ACCUMULATION TRUST
--------------------------------------------------
BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).......................... $ 985,845 $1,534,077 $2,514,260 $25,902,309
========== ========== ========== ===========
Investments in OCC Accumulation Trust, at net asset
value (Note 2)...................................... $ 976,393 $2,493,448 $2,745,853 $37,060,540
---------- ---------- ---------- -----------
Net assets............................................ $ 976,393 $2,493,448 $2,745,853 $37,060,540
========== ========== ========== ===========
Net assets consist of:
Contractholders' net payments....................... $ (457,601) $ 174,107 $1,477,714 $ 3,625,134
Undistributed net investment income................. 1,354,328 226,982 292,232 2,621,890
Accumulated net realized gain on investments........ 89,118 1,132,988 744,314 19,655,285
Unrealized appreciation (depreciation) of
investments...................................... (9,452) 959,371 231,593 11,158,231
---------- ---------- ---------- -----------
Net assets............................................ $ 976,393 $2,493,448 $2,745,853 $37,060,540
========== ========== ========== ===========
Number of units outstanding*.......................... 53,421 55,058 88,120 685,762
---------- ---------- ---------- -----------
Net asset value per unit outstanding*................. $ 18.28 $ 45.29 $ 31.16 $ 54.04
========== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
51
<PAGE> 71
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
-----------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------------------
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......... $243,469 $202,165 $ 2,012,440 $ 3,580,527 $341,271 $ 10,992,296
Mortality and expense
risk charges (Note
3).................... (18,396) (15,934) (518,129) (934,766) (19,001) (2,682,406)
-------- -------- ------------ ------------ -------- -------------
Net investment income... 225,073 186,231 1,494,311 2,645,761 322,270 8,309,890
-------- -------- ------------ ------------ -------- -------------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales... 294,465 345,314 12,538,512 29,950,047 479,928 983,363,941
Cost of shares sold... (162,533) (190,440) (11,650,314) (26,712,928) (323,032) (983,363,941)
-------- -------- ------------ ------------ -------- -------------
Net realized gain on
investments........... 131,932 154,874 888,198 3,237,119 156,896 0
Net increase (decrease)
in unrealized
appreciation of
investments........... (34,914) (198,816) 76,556 71,611 (192,414) 0
-------- -------- ------------ ------------ -------- -------------
Net realized and
unrealized gain (loss)
on investments........ 97,018 (43,942) 964,754 3,308,730 (35,518) 0
-------- -------- ------------ ------------ -------- -------------
Net increase in net
assets resulting from
operations............ $322,091 $142,289 $ 2,459,065 $ 5,954,491 $286,752 $ 8,309,890
======== ======== ============ ============ ======== =============
<CAPTION>
MONYMASTER VALUEMASTER
------------ -----------
MONY SERIES FUND, INC.
--------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
------------ -----------
<S> <C> <C>
Dividend income......... $ 914,254 $ 107,698
Mortality and expense
risk charges (Note
3).................... (365,088) (29,951)
------------ -----------
Net investment income... 549,166 77,747
------------ -----------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales... 12,958,571 6,671,197
Cost of shares sold... (12,184,627) (6,671,197)
------------ -----------
Net realized gain on
investments........... 773,944 0
Net increase (decrease)
in unrealized
appreciation of
investments........... 207,004 0
------------ -----------
Net realized and
unrealized gain (loss)
on investments........ 980,948 0
------------ -----------
Net increase in net
assets resulting from
operations............ $ 1,530,114 $ 77,747
============ ===========
</TABLE>
See notes to financial statements.
52
<PAGE> 72
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------
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..................... $ 23,066,301 $ 21,494,374 $ 185,172,973 $ 3,535,382 $ 7,267,485
Mortality and expense risk charges
(Note 3).......................... (6,030,705) (4,280,171) (29,832,916) (871,380) (927,236)
------------- ------------ ------------- ------------ ------------
Net investment income............... 17,035,596 17,214,203 155,340,057 2,664,002 6,340,249
------------- ------------ ------------- ------------ ------------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............... 175,899,925 147,256,852 826,691,895 26,948,427 19,789,101
Cost of shares sold............... (115,598,723) (98,238,561) (492,341,730) (23,736,365) (19,102,451)
------------- ------------ ------------- ------------ ------------
Net realized gain on investments.... 60,301,202 49,018,291 334,350,165 3,212,062 686,650
Net increase (decrease) in
unrealized appreciation of
investments....................... (43,212,812) (45,383,177) (358,930,321) 1,983,502 (5,646,150)
------------- ------------ ------------- ------------ ------------
Net realized and unrealized gain
(loss) on investments............. 17,088,390 3,635,114 (24,580,156) 5,195,564 (4,959,500)
------------- ------------ ------------- ------------ ------------
Net increase in net assets resulting
from operations................... $ 34,123,986 $ 20,849,317 $ 130,759,901 $ 7,859,566 $ 1,380,749
============= ============ ============= ============ ============
</TABLE>
See notes to financial statements.
53
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
VALUEMASTER
----------------------------------------------------
OCC ACCUMULATION TRUST
----------------------------------------------------
BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Dividend income........................................ $ 68,859 $ 165,930 $ 163,330 $ 1,747,891
Mortality and expense risk charges (Note 3)............ (13,722) (35,545) (42,474) (527,494)
----------- ---------- ----------- -----------
Net investment income.................................. 55,137 130,385 120,856 1,220,397
----------- ---------- ----------- -----------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales.................................. 1,658,832 1,050,116 1,675,892 16,754,576
Cost of shares sold.................................. (1,597,966) (522,723) (1,215,144) (8,450,480)
----------- ---------- ----------- -----------
Net realized gain on investments....................... 60,866 527,393 460,748 8,304,096
Net decrease in unrealized appreciation of
investments.......................................... (42,129) (370,869) (935,652) (6,813,165)
----------- ---------- ----------- -----------
Net realized and unrealized gain (loss) on
investments.......................................... 18,737 156,524 (474,904) 1,490,931
----------- ---------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations........................................... $ 73,874 $ 286,909 $ (354,048) $ 2,711,328
=========== ========== =========== ===========
</TABLE>
See notes to financial statements.
54
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ----------------------- --------------------------
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 225,073 $ 88,958 $ 186,231 $ 131,018 $ 1,494,311 $ 1,467,821
Net realized gain on
investments.................... 131,932 21,769 154,874 106,897 888,198 286,935
Net increase (decrease) in
unrealized appreciation of
investments.................... (34,914) 228,905 (198,816) 112,714 76,556 383,054
---------- ---------- ---------- ---------- ------------ -----------
Net increase in net assets
resulting from operations........ 322,091 339,632 142,289 350,629 2,459,065 2,137,810
---------- ---------- ---------- ---------- ------------ -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 29,672 64,958 33,985 10,553 20,238,046 7,883,206
Net asset value of units redeemed
or used to meet contract
obligations.................... (276,074) (18,731) (329,978) (196,802) (11,236,483) (7,423,806)
---------- ---------- ---------- ---------- ------------ -----------
Net increase (decrease) from unit
transactions..................... (246,402) 46,227 (295,993) (186,249) 9,001,563 459,400
---------- ---------- ---------- ---------- ------------ -----------
Net increase in net assets......... 75,689 385,859 (153,704) 164,380 11,460,628 2,597,210
Net assets beginning of year....... 1,500,365 1,114,506 1,438,034 1,273,654 35,861,201 33,263,991
---------- ---------- ---------- ---------- ------------ -----------
Net assets end of year*............ $1,576,054 $1,500,365 $1,284,330 $1,438,034 $ 47,321,829 $35,861,201
========== ========== ========== ========== ============ ===========
Units outstanding beginning of
year............................. 37,580 36,033 37,519 43,089 1,941,792 1,916,050
Units issued during the year....... 679 1,961 802 353 1,055,742 444,683
Units redeemed during the year..... (6,412) (414) (8,206) (5,923) (583,005) (418,941)
---------- ---------- ---------- ---------- ------------ -----------
Units outstanding end of year...... 31,847 37,580 30,115 37,519 2,414,529 1,941,792
========== ========== ========== ========== ============ ===========
- ---------------
* Includes undistributed net
investment income of: $ 453,653 $ 228,580 $ 705,765 $ 519,534 $ 7,506,305 $ 6,011,994
<CAPTION>
MONYMASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
LONG TERM BOND
SUBACCOUNT
---------------------------
1998 1997
------------ ------------
<S> <C> <C>
From operations:
Net investment income............ $ 2,645,761 $ 2,470,718
Net realized gain on
investments.................... 3,237,119 1,467,041
Net increase (decrease) in
unrealized appreciation of
investments.................... 71,611 2,326,867
------------ ------------
Net increase in net assets
resulting from operations........ 5,954,491 6,264,626
------------ ------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 60,292,920 13,719,649
Net asset value of units redeemed
or used to meet contract
obligations.................... (27,360,952) (10,658,828)
------------ ------------
Net increase (decrease) from unit
transactions..................... 32,931,968 3,060,821
------------ ------------
Net increase in net assets......... 38,886,459 9,325,447
Net assets beginning of year....... 60,357,650 51,032,203
------------ ------------
Net assets end of year*............ $ 99,244,109 $ 60,357,650
============ ============
Units outstanding beginning of
year............................. 2,645,732 2,506,531
Units issued during the year....... 2,492,768 653,780
Units redeemed during the year..... (1,137,904) (514,579)
------------ ------------
Units outstanding end of year...... 4,000,596 2,645,732
============ ============
- ---------------
* Includes undistributed net
investment income of: $ 13,658,824 $ 11,013,063
</TABLE>
See notes to financial statements.
55
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ------------------------------ ------------
1998 1997 1998 1997 1998
---------- ---------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income............................. $ 322,270 $ 123,011 $ 8,309,890 $ 5,143,017 $ 549,166
Net realized gain on investments.................. 156,896 233,594 0 0 773,944
Net increase (decrease) in unrealized appreciation
of investments.................................. (192,414) 41,876 0 0 207,004
---------- ---------- -------------- ------------- ------------
Net increase in net assets resulting from
operations........................................ 286,752 398,481 8,309,890 5,143,017 1,530,114
---------- ---------- -------------- ------------- ------------
From unit transactions:
Net proceeds from the issuance of units........... 71,356 42,121 1,105,652,600 771,270,721 34,260,541
Net asset value of units redeemed or used to meet
contract obligations............................ (461,042) (634,220) (956,073,355) (766,971,962) (11,620,889)
---------- ---------- -------------- ------------- ------------
Net increase (decrease) from unit transactions...... (389,686) (592,099) 149,579,245 4,298,759 22,639,652
---------- ---------- -------------- ------------- ------------
Net increase (decrease) in net assets............... (102,934) (193,618) 157,889,135 9,441,776 24,169,766
Net assets beginning of year........................ 1,673,300 1,866,918 130,080,440 120,638,664 20,983,471
---------- ---------- -------------- ------------- ------------
Net assets end of year*............................. $1,570,366 $1,673,300 $ 287,969,575 $ 130,080,440 $ 45,153,237
========== ========== ============== ============= ============
Units outstanding beginning of year................. 55,440 76,353 8,585,010 8,278,977 1,761,542
Units issued during the year........................ 2,111 1,688 71,354,491 51,933,520 2,769,576
Units redeemed during the year...................... (14,976) (22,601) (61,659,342) (51,627,487) (939,516)
---------- ---------- -------------- ------------- ------------
Units outstanding end of year....................... 42,575 55,440 18,280,159 8,585,010 3,591,602
========== ========== ============== ============= ============
- ---------------
* Includes undistributed net investment income of: $1,053,187 $ 730,917 $ 24,320,955 $ 16,011,065 $ 1,002,007
<CAPTION>
MONYMASTER VALUEMASTER
----------- -------------------------
MONY SERIES FUND, INC.
---------------------------------------
GOVERNMENT
SECURITIES MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------- -------------------------
1997 1998 1997
----------- ----------- -----------
<S> <C> <C> <C>
From operations:
Net investment income............................. $ 393,034 $ 77,747 $ 84,261
Net realized gain on investments.................. 92,136 0 0
Net increase (decrease) in unrealized appreciation
of investments.................................. 518,951 0 0
----------- ----------- -----------
Net increase in net assets resulting from
operations........................................ 1,004,121 77,747 84,261
----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units........... 9,322,729 4,927,649 3,559,696
Net asset value of units redeemed or used to meet
contract obligations............................ (3,626,150) (4,747,240) (5,555,831)
----------- ----------- -----------
Net increase (decrease) from unit transactions...... 5,696,579 180,409 (1,996,135)
----------- ----------- -----------
Net increase (decrease) in net assets............... 6,700,700 258,156 (1,911,874)
Net assets beginning of year........................ 14,282,771 1,701,986 3,613,860
----------- ----------- -----------
Net assets end of year*............................. $20,983,471 $ 1,960,142 $ 1,701,986
=========== =========== ===========
Units outstanding beginning of year................. 1,269,214 122,178 268,258
Units issued during the year........................ 807,156 347,333 258,478
Units redeemed during the year...................... (314,828) (333,272) (404,558)
----------- ----------- -----------
Units outstanding end of year....................... 1,761,542 136,239 122,178
=========== =========== ===========
- ---------------
* Includes undistributed net investment income of: $ 452,841 $ 404,185 $ 326,438
</TABLE>
See notes to financial statements.
56
<PAGE> 76
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
----------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- --------------
1998 1997 1998 1997 1998
------------- ------------ ------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income............................ $ 17,035,596 $ 10,134,835 $ 17,214,203 $ 24,100,179 $ 155,340,057
Net realized gain on investments................. 60,301,202 31,547,377 49,018,291 12,200,856 334,350,165
Net increase (decrease) in unrealized
appreciation of investments.................... (43,212,812) 34,785,044 (45,383,177) 43,551,752 (358,930,321)
------------- ------------ ------------- ------------ --------------
Net increase in net assets resulting from
operations....................................... 34,123,986 76,467,256 20,849,317 79,852,787 130,759,901
------------- ------------ ------------- ------------ --------------
From unit transactions:
Net proceeds from the issuance of units.......... 208,152,834 153,834,908 143,928,984 103,297,248 669,500,974
Net asset value of units redeemed or used to meet
contract obligations........................... (163,245,612) (61,472,849) (138,895,329) (33,906,004) (775,855,076)
------------- ------------ ------------- ------------ --------------
Net increase from unit transactions............... 44,907,222 92,362,059 5,033,655 69,391,244 (106,354,102)
------------- ------------ ------------- ------------ --------------
Net increase in net assets........................ 79,031,208 168,829,315 25,882,972 149,244,031 24,405,799
Net assets beginning of year...................... 441,299,198 272,469,883 317,339,769 168,095,738 2,312,921,552
------------- ------------ ------------- ------------ --------------
Net assets end of year*........................... $ 520,330,406 $441,299,198 $ 343,222,741 $317,339,769 $2,337,327,351
============= ============ ============= ============ ==============
Units outstanding beginning of year............... 10,706,757 8,212,227 8,401,211 6,346,453 43,843,754
Units issued during the year...................... 4,840,471 4,173,627 3,677,232 3,110,995 12,310,620
Units redeemed during the year.................... (3,917,435) (1,679,097) (3,686,038) (1,056,237) (14,597,875)
------------- ------------ ------------- ------------ --------------
Units outstanding end of year..................... 11,629,793 10,706,757 8,392,405 8,401,211 41,556,499
============= ============ ============= ============ ==============
- ---------------
* Includes undistributed net investment income of: $ 36,377,321 $ 19,341,725 $ 56,458,082 $ 39,243,879 $ 319,223,689
<CAPTION>
MONYMASTER
-------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------
MANAGED INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- --------------------------- --------------------------
1997 1998 1997 1998 1997
-------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income............................ $ 79,408,406 $ 2,664,002 $ 1,171,619 $ 6,340,249 $ 3,449,870
Net realized gain on investments................. 202,106,289 3,212,062 3,166,636 686,650 461,482
Net increase (decrease) in unrealized
appreciation of investments.................... 125,071,710 1,983,502 (3,024,032) (5,646,150) 1,157,688
-------------- ------------ ------------ ------------ -----------
Net increase in net assets resulting from
operations....................................... 406,586,405 7,859,566 1,314,223 1,380,749 5,069,040
-------------- ------------ ------------ ------------ -----------
From unit transactions:
Net proceeds from the issuance of units.......... 626,988,679 24,902,914 35,179,809 44,173,041 30,370,695
Net asset value of units redeemed or used to meet
contract obligations........................... (409,563,542) (24,998,725) (16,397,762) (17,825,323) (6,983,741)
-------------- ------------ ------------ ------------ -----------
Net increase from unit transactions............... 217,425,137 (95,811) 18,782,047 26,347,718 23,386,954
-------------- ------------ ------------ ------------ -----------
Net increase in net assets........................ 624,011,542 7,763,755 20,096,270 27,728,467 28,455,994
Net assets beginning of year...................... 1,688,910,010 65,176,534 45,080,264 58,871,661 30,415,667
-------------- ------------ ------------ ------------ -----------
Net assets end of year*........................... $2,312,921,552 $ 72,940,289 $ 65,176,534 $ 86,600,128 $58,871,661
============== ============ ============ ============ ===========
Units outstanding beginning of year............... 39,371,381 5,021,078 3,610,923 4,081,656 2,361,710
Units issued during the year...................... 13,252,564 1,790,119 2,649,674 3,012,678 2,234,031
Units redeemed during the year.................... (8,780,191) (1,856,503) (1,239,519) (1,225,468) (514,085)
-------------- ------------ ------------ ------------ -----------
Units outstanding end of year..................... 43,843,754 4,954,694 5,021,078 5,868,866 4,081,656
============== ============ ============ ============ ===========
- ---------------
* Includes undistributed net investment income of: $ 163,883,632 $ 4,292,243 $ 1,628,241 $ 11,920,109 $ 5,579,860
</TABLE>
See notes to financial statements.
57
<PAGE> 77
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VALUEMASTER
---------------------------------------------------------------------------
OCC ACCUMULATION TRUST
---------------------------------------------------------------------------
BOND EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ----------------------- -----------------------
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............. $ 55,137 $ 82,928 $ 130,385 $ 85,330 $ 120,856 $ 113,545
Net realized gain (loss) on
investments..................... 60,866 (17,195) 527,393 291,249 460,748 105,416
Net increase (decrease) in
unrealized appreciation of
investments..................... (42,129) 22,568 (370,869) 311,925 (935,652) 482,224
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
assets resulting from
operations........................ 73,874 88,301 286,909 688,504 (354,048) 701,185
---------- ---------- ---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units........................... 1,261,119 206,205 181,362 94,191 644,248 273,519
Net asset value of units redeemed
or used to meet contract
obligations..................... (1,645,115) (936,786) (1,024,747) (607,309) (1,633,006) (338,142)
---------- ---------- ---------- ---------- ---------- ----------
Net decrease from unit
transactions...................... (383,996) (730,581) (843,385) (513,118) (988,758) (64,623)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
assets............................ (310,122) (642,280) (556,476) 175,386 (1,342,806) 636,562
Net assets beginning of year....... 1,286,515 1,928,795 3,049,924 2,874,538 4,088,659 3,452,097
---------- ---------- ---------- ---------- ---------- ----------
Net assets end of year*............ $ 976,393 $1,286,515 $2,493,448 $3,049,924 $2,745,853 $4,088,659
========== ========== ========== ========== ========== ==========
Units outstanding beginning of
year.............................. 75,192 118,986 74,411 87,730 117,879 120,183
Units issued during the year....... 70,341 12,934 3,895 2,620 18,913 8,340
Units redeemed during the year..... (92,112) (56,728) (23,248) (15,939) (48,672) (10,644)
---------- ---------- ---------- ---------- ---------- ----------
Units outstanding end of year...... 53,421 75,192 55,058 74,411 88,120 117,879
========== ========== ========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 408,838 $ 353,701 $ 226,982 $ 96,597 $ 292,232 $ 171,376
<CAPTION>
VALUEMASTER
---------------------------
OCC ACCUMULATION TRUST
---------------------------
MANAGED
SUBACCOUNT
---------------------------
1998 1997
------------ ------------
<S> <C> <C>
From operations:
Net investment income............. $ 1,220,397 $ 1,391,969
Net realized gain (loss) on
investments..................... 8,304,096 5,761,094
Net increase (decrease) in
unrealized appreciation of
investments..................... (6,813,165) 1,865,204
------------ ------------
Net increase (decrease) in net
assets resulting from
operations........................ 2,711,328 9,018,267
------------ ------------
From unit transactions:
Net proceeds from the issuance of
units........................... 2,807,780 4,748,474
Net asset value of units redeemed
or used to meet contract
obligations..................... (16,067,125) (12,013,129)
------------ ------------
Net decrease from unit
transactions...................... (13,259,345) (7,264,655)
------------ ------------
Net increase (decrease) in net
assets............................ (10,548,017) 1,753,612
Net assets beginning of year....... 47,608,557 45,854,945
------------ ------------
Net assets end of year*............ $ 37,060,540 $ 47,608,557
============ ============
Units outstanding beginning of
year.............................. 932,054 1,084,412
Units issued during the year....... 54,133 98,535
Units redeemed during the year..... (300,425) (250,893)
------------ ------------
Units outstanding end of year...... 685,762 932,054
============ ============
- ---------------
* Includes undistributed net
investment income of: $ 2,621,890 $ 1,401,493
</TABLE>
See notes to financial statements.
58
<PAGE> 78
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
(MONYMaster, ValueMaster and MONY Custom Master). These policies are issued by
MONY America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to MONYMaster
and ValueMaster insurance policies is presented here.
There are currently twelve MONYMaster subaccounts and five ValueMaster
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") (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.
On December 21, 1998, the Variable Account effected a substitution by
redeeming shares of the OCC Accumulation Trust Money Market Portfolio and using
the redemption proceeds to purchase shares of the MONY Series Fund, Inc. Money
Market 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 hereinafter, and should be
read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is 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.
59
<PAGE> 79
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
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 the MONYMaster and ValueMaster subaccounts for 1998 aggregated
$2,478,516.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 1.25 percent of the average
daily net assets of the subaccounts. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
MONYMASTER
-----------------------------------------------------------------------------------
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............. 41,584 53,064 3,224,928 4,425,048 81,189 130,080,440
Amount............. $ 984,605 $ 945,478 $ 34,084,201 $ 54,686,512 $1,184,974 $ 130,080,440
---------- --------- ------------ ------------ ---------- --------------
Shares acquired:
Shares............. 852 1,277 1,888,240 4,472,816 3,637 1,130,260,780
Amount............. $ 29,667 $ 33,387 $ 21,021,946 $ 61,947,249 $ 71,241 $1,130,260,780
Shares received for
reinvestment of
dividends:
Shares............. 7,190 7,830 187,903 275,002 19,314 10,992,296
Amount............. $ 243,469 $ 202,165 $ 2,012,440 $ 3,580,527 $ 341,271 $ 10,992,296
Shares redeemed:
Shares............. (8,368) (12,678) (1,124,387) (2,169,047) (25,267) (983,363,941)
Amount............. $ (162,533) $(190,440) $(11,650,314) $(26,712,928) $ (323,032) $ (983,363,941)
---------- --------- ------------ ------------ ---------- --------------
Net change:
Shares............. (326) (3,571) 951,756 2,578,771 (2,316) 157,889,135
Amount............. $ 110,603 $ 45,112 $ 11,384,072 $ 38,814,848 $ 89,480 $ 157,889,135
---------- --------- ------------ ------------ ---------- --------------
Shares end of year:
Shares............. 41,258 49,493 4,176,684 7,003,819 78,873 287,969,575
Amount............. $1,095,208 $ 990,590 $ 45,468,273 $ 93,501,360 $1,274,454 $ 287,969,575
========== ========= ============ ============ ========== ==============
<CAPTION>
MONYMASTER VALUEMASTER
------------ -----------
MONY SERIES FUND, INC.
--------------------------
GOVERNMENT MONEY
SECURITIES MARKET
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C> <C>
Shares beginning of
year:
Shares............. 1,926,857 0
Amount............. $ 20,107,823 $ 0
------------ ----------
Shares acquired:
Shares............. 3,206,904 1,967,858
Amount............. $ 35,233,135 $1,967,858
Shares received for
reinvestment of
dividends:
Shares............. 86,413 2,547
Amount............. $ 914,254 $ 2,547
Shares redeemed:
Shares............. (1,177,807) (10,263)
Amount............. $(12,184,627) $ (10,263)
------------ ----------
Net change:
Shares............. 2,115,510 1,960,142
Amount............. $ 23,962,762 $1,960,142
------------ ----------
Shares end of year:
Shares............. 4,042,367 1,960,142
Amount............. $ 44,070,585 $1,960,142
============ ==========
</TABLE>
60
<PAGE> 80
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Shares beginning of 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
------------- ------------- --------------- ------------ ------------
Shares acquired:
Shares................................ 5,834,944 5,328,833 16,356,957 3,899,488 8,087,770
Amount................................ $ 214,776,442 $ 148,010,336 $ 690,504,877 $ 25,981,236 $ 45,209,583
Shares received for reinvestment of
dividends:
Shares................................ 628,852 820,709 4,565,409 544,743 1,320,477
Amount................................ $ 23,066,301 $ 21,494,374 $ 185,172,973 $ 3,535,382 $ 7,267,485
Shares redeemed:
Shares................................ (4,908,273) (5,490,236) (20,013,010) (4,168,595) (3,591,867)
Amount................................ $(115,598,723) $ (98,238,561) $ (492,341,730) $(23,736,365) $(19,102,451)
------------- ------------- --------------- ------------ ------------
Net change:
Shares................................ 1,555,523 659,306 909,356 275,636 5,816,380
Amount................................ $ 122,244,020 $ 71,266,149 $ 383,336,120 $ 5,780,253 $ 33,374,617
------------- ------------- --------------- ------------ ------------
Shares end of year:
Shares................................ 14,131,732 12,544,691 57,626,414 10,822,001 16,126,653
Amount................................ $ 476,064,032 $ 326,802,737 $ 2,160,672,479 $ 70,442,620 $ 90,084,355
============= ============= =============== ============ ============
</TABLE>
61
<PAGE> 81
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in OCC Accumulation Trust at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
VALUEMASTER
---------------------------------------------------------------------
OCC ACCUMULATION TRUST
---------------------------------------------------------------------
US GOVERNMENT
MONEY MARKET INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.................................... 1,701,986 122,409 83,514 155,049 1,123,373
Amount.................................... $ 1,701,986 $ 1,253,838 $1,719,684 $ 2,921,414 $29,637,161
----------- ----------- ---------- ----------- -----------
Shares acquired:
Shares.................................... 4,853,797 117,535 4,559 27,187 71,173
Amount.................................... $ 4,853,797 $ 1,261,114 $ 171,186 $ 644,660 $ 2,967,737
Shares received for reinvestment of
dividends:
Shares.................................... 105,151 6,465 4,506 6,108 40,382
Amount.................................... $ 105,151 $ 68,859 $ 165,930 $ 163,330 $ 1,747,891
Shares redeemed:
Shares.................................... (6,660,934) (154,815) (28,149) (69,476) (387,637)
Amount.................................... $(6,660,934) $(1,597,966) $ (522,723) $(1,215,144) $(8,450,480)
----------- ----------- ---------- ----------- -----------
Net change:
Shares.................................... (1,701,986) (30,815) (19,084) (36,181) (276,082)
Amount.................................... $(1,701,986) $ (267,993) $ (185,607) $ (407,154) $(3,734,852)
----------- ----------- ---------- ----------- -----------
Shares end of year:
Shares.................................... 0 91,594 64,430 118,868 847,291
Amount.................................... $ 0 $ 985,845 $1,534,077 $ 2,514,260 $25,902,309
=========== =========== ========== =========== ===========
</TABLE>
62
<PAGE> 82
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 -- MONYMaster/ValueMaster:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account A (comprising,
respectively, MONYMaster's Equity Growth, Equity Income, Intermediate Term Bond,
Long Term Bond, Diversified, Money Market, Government Securities, Equity, Small
Cap, Managed, International Growth and High Yield Bond Subaccounts; and
ValueMaster's Money Market, Bond, Equity, Small Cap and Managed Subaccounts) at
December 31, 1998, the results of each of their operations for the year then
ended and the changes in each of their net assets for each of the two years in
the period then ended, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the MONY Life
Insurance Company of America's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statement in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
63
<PAGE> 83
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT SMALL COMPANY
TERM BOND BOND SECURITIES MONEY MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note
4)........................ $244,902 $387,596 $545,977 $1,429,027 $630,492 $362,442 $2,122,104
======== ======== ======== ========== ======== ======== ==========
Investments in Enterprise
Accumulation Trust, at net
asset value (Note 2)...... $ 0 $ 0 $ 0 $ 0 $643,411 $382,359 $2,151,196
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2)............ 245,378 388,239 546,738 1,429,027 0 0 0
Amount due from Enterprise
Accumulation Trust........ 0 0 0 0 2,784 1,872 9,186
Amount due from MONY
America................... 12,017 30,522 31,474 90,641 73,681 19,091 131,982
Amount due from MONY Series
Fund, Inc. ............... 0 45 0 76,216 0 0 0
-------- -------- -------- ---------- -------- -------- ----------
Total assets....... 257,395 418,806 578,212 1,595,884 719,876 403,322 2,292,364
-------- -------- -------- ---------- -------- -------- ----------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........ $ 0 $ 0 $ 0 $ 0 $ 73,681 $ 19,091 $ 131,982
Amount due to MONY
America................... 0 45 0 76,216 2,784 1,872 9,186
Amount due to MONY Series
Fund, Inc................. 12,017 30,522 31,474 90,641 0 0 0
-------- -------- -------- ---------- -------- -------- ----------
Total liabilites... 12,017 30,567 31,474 166,857 76,465 20,963 141,168
-------- -------- -------- ---------- -------- -------- ----------
Net assets.................. $245,378 $388,239 $546,738 $1,429,027 $643,411 $382,359 $2,151,196
======== ======== ======== ========== ======== ======== ==========
Net assets consist of:
Contractholders' net
payments................ $244,986 $387,777 $546,179 $1,427,801 $631,080 $362,502 $2,123,926
Undistributed net
investment income
(loss).................. (84) (158) (202) 1226 (202) (136) (647)
Accumulated net realized
gain (loss) on
investments............. 0 (23) 0 0 (386) 76 (1,175)
Unrealized appreciation of
investments............. 476 643 761 0 12,919 19,917 29,092
-------- -------- -------- ---------- -------- -------- ----------
Net assets.................. $245,378 $388,239 $546,738 $1,429,027 $643,411 $382,359 $2,151,196
======== ======== ======== ========== ======== ======== ==========
Number of units
outstanding*.............. 24,535 39,054 54,777 142,487 64,500 36,198 215,756
-------- -------- -------- ---------- -------- -------- ----------
Net asset value per unit
outstanding*.............. $ 10.00 $ 9.94 $ 9.98 $ 10.03 $ 9.98 $ 10.56 $ 9.97
======== ======== ======== ========== ======== ======== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
64
<PAGE> 84
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost
(Note 4).............. $161,670 $246,684 $1,593,581 $265,822 $185,421 $197,294 $215,457
======== ======== ========== ======== ======== ======== ========
Investments in
Enterprise
Accumulation Trust, at
net asset value (Note
2).................... $166,878 $247,043 $1,629,236 $272,000 $194,366 $199,018 $224,406
Amount due from MONY
America............... 10,019 4,041 144,579 23,318 24,613 31,455 10,014
-------- -------- ---------- -------- -------- -------- --------
Total
assets...... 176,897 251,084 1,773,815 295,318 218,979 230,473 234,420
-------- -------- ---------- -------- -------- -------- --------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.... 10,019 4,041 144,579 23,318 24,613 31,455 10,014
-------- -------- ---------- -------- -------- -------- --------
Total
liabilites... 10,019 4,041 144,579 23,318 24,613 31,455 10,014
-------- -------- ---------- -------- -------- -------- --------
Net assets.............. $166,878 $247,043 $1,629,236 $272,000 $194,366 $199,018 $224,406
======== ======== ========== ======== ======== ======== ========
Net assets consist of:
Contractholders' net
payments........... $161,753 $246,240 $1,594,029 $265,896 $185,484 $197,340 $215,502
Undistributed net
investment income
(loss)............. (87) 444 (592) (75) (67) (47) (49)
Accumulated net
realized gain on
investments........ 4 0 144 1 4 1 4
Unrealized
appreciation of
investments........ 5,208 359 35,655 6,178 8,945 1,724 8,949
-------- -------- ---------- -------- -------- -------- --------
Net assets.............. $166,878 $247,043 $1,629,236 $272,000 $194,366 $199,018 $224,406
======== ======== ========== ======== ======== ======== ========
Number of units
outstanding* ......... 15,811 24,732 154,728 26,693 17,887 19,409 20,360
-------- -------- ---------- -------- -------- -------- --------
Net asset value per unit
outstanding* ......... $ 10.55 $ 9.99 $ 10.53 $ 10.19 $ 10.87 $ 10.25 $ 11.02
======== ======== ========== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
65
<PAGE> 85
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 8, 1998** DECEMBER 2, 1998** DECEMBER 2, 1998** DECEMBER 2, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Dividend income...... $ 0 $ 0 $ 0 $ 1,642
Mortality and expense
risk charges
(Note 3)........... (84) (158) (202) (416)
---- ------- ----- ---------
Net investment
income............. (84) (158) (202) 1,226
---- ------- ----- ---------
Realized and
unrealized gain on
investments (Note
2):
Proceeds from
sales............ 83 4,722 202 249,922
Cost of shares
sold............. (83) (4,745) (202) (249,922)
---- ------- ----- ---------
Net realized gain
(loss) on
investments........ 0 (23) 0 0
Net increase in
unrealized
appreciation of
investments........ 476 643 761 0
---- ------- ----- ---------
Net realized and
unrealized gain on
investments........ 476 620 761 0
---- ------- ----- ---------
Net increases in net
assets resulting
from operations.... $392 $ 462 $ 559 $ 1,226
==== ======= ===== =========
- ---------------
** Commencement of operations.
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 1, 1998** DECEMBER 3, 1998** DECEMBER 1, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
Dividend income...... $ 0 $ 0 $ 0
Mortality and expense
risk charges
(Note 3)........... (202) (136) (647)
-------- ------- --------
Net investment
income............. (202) (136) (647)
-------- ------- --------
Realized and
unrealized gain on
investments (Note
2):
Proceeds from
sales............ 11,154 4,512 36,776
Cost of shares
sold............. (11,540) (4,436) (37,951)
-------- ------- --------
Net realized gain
(loss) on
investments........ (386) 76 (1,175)
Net increase in
unrealized
appreciation of
investments........ 12,919 19,917 29,092
-------- ------- --------
Net realized and
unrealized gain on
investments........ 12,533 19,993 27,917
-------- ------- --------
Net increases in net
assets resulting
from operations.... $ 12,331 $19,857 $ 27,270
======== ======= ========
- ---------------
** Commencement of op
</TABLE>
See notes to financial statements.
66
<PAGE> 86
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY
GROWTH BOND GROWTH INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 3, 1998** DECEMBER 9, 1998** DECEMBER 1, 1998** DECEMBER 3, 1998** DECEMBER 3, 1998**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C> <C>
Dividend income...... $ 0 $519 $ 0 $ 0 $ 0
Mortality and expense
risk charges (Note
3)................. (87) (75) (592) (75) (67)
------ ---- ------- ------- ------
Net investment income
(loss)............. (87) 444 (592) (75) (67)
------ ---- ------- ------- ------
Realized and
unrealized gain on
investments (Note
2):
Proceeds from
sales............ 87 75 10,015 75 72
Cost of shares
sold............. (83) (75) (9,871) (74) (68)
------ ---- ------- ------- ------
Net realized gain on
investments........ 4 0 144 1 4
Net increase in
unrealized
appreciation of
investments........ 5,208 359 35,655 6,178 8,945
------ ---- ------- ------- ------
Net realized and
unrealized gain on
investments........ 5,212 359 35,799 6,179 8,949
------ ---- ------- ------- ------
Net increase in net
assets resulting
from operations.... $5,125 $803 $35,207 $ 6,104 $8,882
====== ==== ======= ======= ======
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------
EQUITY CAPITAL
INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT
------------------- -------------------
FOR THE PERIOD FOR THE PERIOD
DECEMBER 8, 1998** DECEMBER 8, 1998**
THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- -------------------
<S> <C> <C>
Dividend income...... $ 0 $ 0
Mortality and expense
risk charges (Note
3)................. (47) (49)
------ ------
Net investment income
(loss)............. (47) (49)
------ ------
Realized and
unrealized gain on
investments (Note
2):
Proceeds from
sales............ 47 49
Cost of shares
sold............. (46) (45)
------ ------
Net realized gain on
investments........ 1 4
Net increase in
unrealized
appreciation of
investments........ 1,724 8,949
------ ------
Net realized and
unrealized gain on
investments........ 1,725 8,953
------ ------
Net increase in net
assets resulting
from operations.... $1,678 $8,904
====== ======
</TABLE>
- ---------------
** Commencement of operations.
See notes to financial statements.
67
<PAGE> 87
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------
MONY SERIES FUND. INC.
---------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT
TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 8, 1998** DECEMBER 2, 1998** DECEMBER 2, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................ $ (84) $ (158) $ (202)
Net realized gain (loss) on investments..... 0 (23) 0
Net increase in unrealized appreciation of
investments............................... 476 643 761
-------- -------- --------
Net increase in net assets resulting from
operations.................................. 392 462 559
-------- -------- --------
From unit transactions:
Net proceeds from the issuance of units..... 244,986 387,777 546,179
Net asset value of units redeemed or used to
meet contract obligations................. 0 0 0
-------- -------- --------
Net increase from unit transactions.......... 244,986 387,777 546,179
-------- -------- --------
Net increase in net assets................... 245,378 388,239 546,738
Net assets beginning of period............... 0 0 0
-------- -------- --------
Net assets end of period*.................... $245,378 $388,239 $546,738
======== ======== ========
Units outstanding beginning of period........ 0 0 0
Units issued during the period............... 24,535 39,054 54,777
Units redeemed during the period............. 0 0 0
-------- -------- --------
Units outstanding end of period.............. 24,535 39,054 54,777
======== ======== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (84) $ (158) $ (202)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
---------------------
MONY SERIES FUND. INC. ENTERPRISE ACCUMULATION TRUST
---------------------
MONEY
MARKET
SUBACCOUNT
-------------------
FOR THE PERIOD
DECEMBER 2, 1998**
THROUGH
DECEMBER 31, 1998
------------------
<S> <C>
From operations:
Net investment income (loss)................ $ 1,226
Net realized gain (loss) on investments..... 0
Net increase in unrealized appreciation of
investments............................... 0
----------
Net increase in net assets resulting from
operations.................................. 1,226
----------
From unit transactions:
Net proceeds from the issuance of units..... 1,599,084
Net asset value of units redeemed or used to
meet contract obligations................. (171,283)
----------
Net increase from unit transactions.......... 1,427,801
----------
Net increase in net assets................... 1,429,027
Net assets beginning of period............... 0
----------
Net assets end of period*.................... $1,429,027
==========
Units outstanding beginning of period........ 0
Units issued during the period............... 159,572
Units redeemed during the period............. (17,085)
----------
Units outstanding end of period.............. 142,487
==========
- ---------------
* Includes undistributed net investment
income (loss) of: $ 1,226
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 1, 1998** DECEMBER 3, 1998** DECEMBER 1, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................ $ (202) $ (136) $ (647)
Net realized gain (loss) on investments..... (386) 76 (1,175)
Net increase in unrealized appreciation of
investments............................... 12,919 19,917 29,092
-------- -------- ----------
Net increase in net assets resulting from
operations.................................. 12,331 19,857 27,270
-------- -------- ----------
From unit transactions:
Net proceeds from the issuance of units..... 631,080 362,502 2,123,926
Net asset value of units redeemed or used to
meet contract obligations................. 0 0 0
-------- -------- ----------
Net increase from unit transactions.......... 631,080 362,502 2,123,926
-------- -------- ----------
Net increase in net assets................... 643,411 382,359 2,151,196
Net assets beginning of period............... 0 0 0
-------- -------- ----------
Net assets end of period*.................... $643,411 $382,359 $2,151,196
======== ======== ==========
Units outstanding beginning of period........ 0 0 0
Units issued during the period............... 64,500 36,198 215,756
Units redeemed during the period............. 0 0 0
-------- -------- ----------
Units outstanding end of period.............. 64,500 36,198 215,756
======== ======== ==========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (202) $ (136) $ (647)
** Commencement of operations
</TABLE>
See notes to financial statements.
68
<PAGE> 88
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 3, 1998** DECEMBER 9, 1998** DECEMBER 1, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................ $ (87) $ 444 $ (592)
Net realized gain on investments............ 4 0 144
Net increase in unrealized appreciation of
investments............................... 5,208 359 35,655
-------- -------- ----------
Net increase in net assets resulting from
operations.................................. 5,125 803 35,207
-------- -------- ----------
From unit transactions:
Net proceeds from the issuance of units..... 161,753 246,240 1,594,029
Net asset value of units redeemed or used to
meet contract obligations................. 0 0 0
-------- -------- ----------
Net increase from unit transactions......... 161,753 246,240 1,594,029
-------- -------- ----------
Net increase in net assets................... 166,878 247,043 1,629,236
Net assets beginning of period............... 0 0 0
-------- -------- ----------
Net assets end of period*.................... $166,878 $247,043 $1,629,236
======== ======== ==========
Units outstanding beginning of period........ 0 0 0
Units issued during the period............... 15,811 24,732 154,728
Units redeemed during the period............. 0 0 0
-------- -------- ----------
Units outstanding end of period.............. 15,811 24,732 154,728
======== ======== ==========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (87) $ 444 $ (592)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
GROWTH AND SMALL COMPANY EQUITY
INCOME GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 3, 1998** DECEMBER 3, 1998** DECEMBER 8, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................ $ (75) $ (67) $ (47)
Net realized gain on investments............ 1 4 1
Net increase in unrealized appreciation of
investments............................... 6,178 8,945 1,724
-------- -------- --------
Net increase in net assets resulting from
operations.................................. 6,104 8,882 1,678
-------- -------- --------
From unit transactions:
Net proceeds from the issuance of units..... 265,896 185,484 197,340
Net asset value of units redeemed or used to
meet contract obligations................. 0 0 0
-------- -------- --------
Net increase from unit transactions......... 265,896 185,484 197,340
-------- -------- --------
Net increase in net assets................... 272,000 194,366 199,018
Net assets beginning of period............... 0 0 0
-------- -------- --------
Net assets end of period*.................... $272,000 $194,366 $199,018
======== ======== ========
Units outstanding beginning of period........ 0 0 0
Units issued during the period............... 26,693 17,887 19,409
Units redeemed during the period............. 0 0 0
-------- -------- --------
Units outstanding end of period.............. 26,693 17,887 19,409
======== ======== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (75) $ (67) $ (47)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
-------------------
ENTERPRISE ACCUMULATION TRUST
-------------------
CAPITAL
APPRECIATION
SUBACCOUNT
-------------------
FOR THE PERIOD
DECEMBER 8, 1998**
THROUGH
DECEMBER 31, 1998
------------------
<S> <C>
From operations:
Net investment income (loss)................ $ (49)
Net realized gain on investments............ 4
Net increase in unrealized appreciation of
investments............................... 8,949
--------
Net increase in net assets resulting from
operations.................................. 8,904
--------
From unit transactions:
Net proceeds from the issuance of units..... 215,502
Net asset value of units redeemed or used to
meet contract obligations................. 0
--------
Net increase from unit transactions......... 215,502
--------
Net increase in net assets................... 224,406
Net assets beginning of period............... 0
--------
Net assets end of period*.................... $224,406
========
Units outstanding beginning of period........ 0
Units issued during the period............... 20,360
Units redeemed during the period............. 0
--------
Units outstanding end of period.............. 20,360
========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (49)
** Commencement of operations
</TABLE>
See notes to financial statements.
69
<PAGE> 89
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
(MONYMaster, ValueMaster and MONY Custom Master). These policies are issued by
MONY America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to MONY Custom
Master is presented here.
There are currently fourteen MONY Custom Master 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 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 hereinafter and should be read in
conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of each portfolio. Except for the
Money Market Portfolio, net asset value is based upon market valuations of the
securities held in each of the corresponding portfolios of the Funds. For the
Money Market Portfolio, the net asset value is 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.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 1.25 percent of average daily
net assets of the subaccounts. 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.
70
<PAGE> 90
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and the Enterprise Accumulation Trust
at cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------- --------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ---------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares....................... 0 0 0 0 0 0 0
Amount....................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
-------- -------- -------- ---------- -------- -------- ----------
Shares acquired:
Shares....................... 21,665 27,732 48,965 1,677,307 17,787 14,146 53,974
Amount....................... $244,985 $392,341 $546,179 $1,677,307 $642,032 $366,878 $2,160,055
Shares received for
reinvestment of dividends:
Shares....................... 0 0 0 1,642 0 0 0
Amount....................... $ 0 $ 0 $ 0 $ 1,642 $ 0 $ 0 $ 0
Shares redeemed:
Shares....................... (7) (333) (18) (249,922) (313) (171) (937)
Amount....................... $ (83) $ (4,745) $ (202) $ (249,922) $(11,540) $ (4,436) $ (37,951)
-------- -------- -------- ---------- -------- -------- ----------
Net change:
Shares....................... 21,658 27,399 48,947 1,429,027 17,474 13,975 53,037
Amount....................... $244,902 $387,596 $545,977 $1,429,027 $630,492 $362,442 $2,122,104
-------- -------- -------- ---------- -------- -------- ----------
Shares end of period:
Shares....................... 21,658 27,399 48,947 1,429,027 17,474 13,975 53,037
Amount....................... $244,902 $387,596 $545,977 $1,429,027 $630,492 $362,442 $2,122,104
======== ======== ======== ========== ======== ======== ==========
</TABLE>
71
<PAGE> 91
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in the Enterprise Accumulation Trust at cost, at December 31,
1998 consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- ---------- ---------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares................... 0 $ 0 0 0 0 0 0
Amount................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
-------- -------- ---------- -------- -------- -------- --------
Shares acquired:
Shares................... 24,772 45,921 311,127 53,244 35,612 39,109 40,297
Amount................... $161,753 $246,240 $1,603,452 $265,896 $185,489 $197,340 $215,502
Shares received for
reinvestment of
dividends:
Shares................... 0 97 0 0 0 0 0
Amount................... $ 0 $ 519 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares................... (13) (14) (1,974) (15) (14) (9) (9)
Amount................... $ (83) $ (75) $ (9,871) $ (74) $ (68) $ (46) $ (45)
-------- -------- ---------- -------- -------- -------- --------
Net change:
Shares................... 24,759 46,004 309,153 53,229 35,598 39,100 40,288
Amount................... $161,670 $246,684 $1,593,581 $265,822 $185,421 $197,294 $215,457
-------- -------- ---------- -------- -------- -------- --------
Shares end of period:
Shares................... 24,759 46,004 309,153 53,229 35,598 39,100 40,288
Amount................... $161,670 $246,684 $1,593,581 $265,822 $185,421 $197,294 $215,457
======== ======== ========== ======== ======== ======== ========
</TABLE>
72
<PAGE> 92
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 -- MONY Custom Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account A (comprising MONY Custom
Master's Intermediate Term Bond, Long Term Bond, Government Securities, Money
Market, Equity, Small Company Value, Managed, International Growth, High Yield
Bond, Growth, Growth and Income, Small Company Growth, Equity Income, and
Capital Appreciation Subaccounts) at December 31, 1998, and the results of each
of their operations and the changes in each of their net assets for the periods
presented, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of the MONY Life Insurance Company
of America's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1998 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
73
<PAGE> 93
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM
GROWTH INCOME TERM BOND BOND DIVERSIFIED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note
4)...................... $201,356 $245,237 $10,403,051 $19,505,896 $ 83,261
======== ======== =========== =========== =========
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... $314,750 $338,543 $10,791,271 $21,185,984 $ 98,511
Amount due from MONY...... 0 0 25 152 0
Amount due from MONY
Series Fund, Inc. ...... 12 0 20 266 9
-------- -------- ----------- ----------- ---------
Total assets..... 314,762 338,543 10,791,316 21,186,402 98,520
-------- -------- ----------- ----------- ---------
LIABILITIES
Amount due to MONY........ 12 0 20 266 9
Amount due to MONY Series
Fund, Inc. ............. 0 0 25 152 0
-------- -------- ----------- ----------- ---------
Total
liabilities.... 12 0 45 418 9
-------- -------- ----------- ----------- ---------
Net assets................ $314,750 $338,543 $10,791,271 $21,185,984 $ 98,511
======== ======== =========== =========== =========
Net assets consist of:
Contractholders' net
payments.............. $ (3,943) $(29,782) $ 8,291,052 $15,321,887 $(172,517)
Undistributed net
investment income..... 89,650 174,268 1,867,789 3,313,808 130,644
Accumulated net realized
gain on investments... 115,649 100,751 244,210 870,201 125,134
Unrealized appreciation
of investments........ 113,394 93,306 388,220 1,680,088 15,250
-------- -------- ----------- ----------- ---------
Net assets................ $314,750 $338,543 $10,791,271 $21,185,984 $ 98,511
======== ======== =========== =========== =========
Number of units
outstanding*............ 6,343 8,207 561,493 847,628 2,754
-------- -------- ----------- ----------- ---------
Net asset value per unit
outstanding*............ $ 49.62 $ 41.25 $ 19.22 $ 24.99 $ 35.77
======== ======== =========== =========== =========
<CAPTION>
MONYMASTER VALUEMASTER
------------------------ -----------
MONY SERIES FUND, INC.
--------------------------------------
MONEY GOVERNMENT MONEY
MARKET SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- -----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note
4)...................... $48,959,018 $7,067,782 $515,806
=========== ========== ========
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... $48,959,018 $7,270,313 $515,806
Amount due from MONY...... 40,177 701 0
Amount due from MONY
Series Fund, Inc. ...... 4,393 413 0
----------- ---------- --------
Total assets..... 49,003,588 7,271,427 515,806
----------- ---------- --------
LIABILITIES
Amount due to MONY........ 4,393 413 0
Amount due to MONY Series
Fund, Inc. ............. 40,177 701 0
----------- ---------- --------
Total
liabilities.... 44,570 1,114 0
----------- ---------- --------
Net assets................ $48,959,018 $7,270,313 $515,806
=========== ========== ========
Net assets consist of:
Contractholders' net
payments.............. $44,825,925 $6,814,440 $446,176
Undistributed net
investment income..... 4,133,093 144,739 69,630
Accumulated net realized
gain on investments... 0 108,603 0
Unrealized appreciation
of investments........ 0 202,531 0
----------- ---------- --------
Net assets................ $48,959,018 $7,270,313 $515,806
=========== ========== ========
Number of units
outstanding*............ 3,114,064 581,295 35,959
----------- ---------- --------
Net asset value per unit
outstanding*............ $ 15.72 $ 12.51 $ 14.34
=========== ========== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
74
<PAGE> 94
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
----------------------------------------------------------------------
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)............ $61,161,723 $40,992,718 $276,708,551 $ 9,911,540 $11,305,992
=========== =========== ============ =========== ===========
Investments in Enterprise Accumulation
Trust, at net asset value (Note 2).... $67,605,479 $44,371,040 $301,871,363 $10,473,576 $10,823,683
Amount due from MONY.................... 60,789 4,202 68,903 553 547
Amount due from Enterprise Accumulation
Trust................................. 953 1,156 120,816 155 168
----------- ----------- ------------ ----------- -----------
Total assets.................. 67,667,221 44,376,398 302,061,082 10,474,284 10,824,398
----------- ----------- ------------ ----------- -----------
LIABILITIES
Amount due to MONY...................... 953 1,156 120,816 155 168
Amount due to Enterprise Accumulation
Trust................................. 60,789 4,202 68,903 553 547
----------- ----------- ------------ ----------- -----------
Total liabilities............. 61,742 5,358 189,719 708 715
----------- ----------- ------------ ----------- -----------
Net assets.............................. $67,605,479 $44,371,040 $301,871,363 $10,473,576 $10,823,683
=========== =========== ============ =========== ===========
Net assets consist of:
Contractholders' net payments......... $39,926,997 $26,151,662 $140,780,469 $ 8,616,077 $ 9,819,781
Undistributed net investment income... 5,015,479 7,097,100 42,513,586 591,208 1,376,102
Accumulated net realized gain on
investments........................ 16,219,247 7,743,956 93,414,496 704,255 110,109
Unrealized appreciation (depreciation)
of investments..................... 6,443,756 3,378,322 25,162,812 562,036 (482,309)
----------- ----------- ------------ ----------- -----------
Net assets.............................. $67,605,479 $44,371,040 $301,871,363 $10,473,576 $10,823,683
=========== =========== ============ =========== ===========
Number of units outstanding*............ 1,510,836 1,087,406 5,369,272 711,551 732,343
----------- ----------- ------------ ----------- -----------
Net asset value per unit outstanding*... $ 44.75 $ 40.80 $ 56.22 $ 14.72 $ 14.78
=========== =========== ============ =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
75
<PAGE> 95
MONY
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
VALUEMASTER
--------------------------------------------------
OCC ACCUMULATION TRUST
--------------------------------------------------
BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............................... $660,143 $213,100 $134,305 $ 7,339,760
======== ======== ======== ===========
Investments in OCC Accumulation Trust, at net asset value
(Note 2)................................................. $679,854 $333,320 $148,624 $10,429,231
-------- -------- -------- -----------
Net assets................................................. $679,854 $333,320 $148,624 $10,429,231
======== ======== ======== ===========
Net assets consist of:
Contractholders' net payments............................ $508,711 $ 70,554 $(11,738) $ 2,239,802
Undistributed net investment income...................... 154,732 29,660 32,390 694,423
Accumulated net realized gain (loss) on investments...... (3,300) 112,886 113,653 4,405,535
Unrealized appreciation of investments................... 19,711 120,220 14,319 3,089,471
-------- -------- -------- -----------
Net assets................................................. $679,854 $333,320 $148,624 $10,429,231
======== ======== ======== ===========
Number of units outstanding*............................... 37,207 7,358 4,781 193,049
-------- -------- -------- -----------
Net asset value per unit outstanding*...................... $ 18.27 $ 45.29 $ 31.09 $ 54.02
======== ======== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
76
<PAGE> 96
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------------
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....... $ 44,099 $ 51,132 $ 433,654 $ 838,752 $ 25,421 $ 1,686,933
Mortality and expense
risk charges (Note
3).................. (3,507) (4,063) (113,470) (208,599) (1,281) (411,381)
----------- ----------- ----------- ----------- ----------- -------------
Net investment
income.............. 40,592 47,069 320,184 630,153 24,140 1,275,552
----------- ----------- ----------- ----------- ----------- -------------
Realized and
unrealized gain
(loss) on
investments (Note
2):
Proceeds from
sales............. 48,941 56,822 3,100,202 2,794,090 73,159 123,609,629
Cost of shares
sold.............. (18,764) (27,642) (2,966,391) (2,286,745) (59,182) (123,609,629)
----------- ----------- ----------- ----------- ----------- -------------
Net realized gain on
investments......... 30,177 29,180 133,811 507,345 13,977 0
Net increase
(decrease) in
unrealized
appreciation of
investments......... (7,398) (39,218) 74,736 203,832 (14,958) 0
----------- ----------- ----------- ----------- ----------- -------------
Net realized and
unrealized gain
(loss) on
investments......... 22,779 (10,038) 208,547 711,177 (981) 0
----------- ----------- ----------- ----------- ----------- -------------
Net increase in net
assets resulting
from operations..... $ 63,371 $ 37,031 $ 528,731 $ 1,341,330 $ 23,159 $ 1,275,552
=========== =========== =========== =========== =========== =============
<CAPTION>
MONYMASTER VALUEMASTER
----------- -----------
MONY SERIES FUND, INC.
-------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
----------- -----------
<S> <C> <C>
Dividend income....... $ 154,732 $ 23,710
Mortality and expense
risk charges (Note
3).................. (60,782) (6,605)
----------- -----------
Net investment
income.............. 93,950 17,105
----------- -----------
Realized and
unrealized gain
(loss) on
investments (Note
2):
Proceeds from
sales............. 1,217,412 3,159,946
Cost of shares
sold.............. (1,135,396) (3,159,946)
----------- -----------
Net realized gain on
investments......... 82,016 0
Net increase
(decrease) in
unrealized
appreciation of
investments......... 72,464 0
----------- -----------
Net realized and
unrealized gain
(loss) on
investments......... 154,480 0
----------- -----------
Net increase in net
assets resulting
from operations..... $ 248,430 $ 17,105
=========== ===========
</TABLE>
See notes to financial statements.
77
<PAGE> 97
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYMASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Dividend income......................... $ 3,014,135 $ 2,731,100 $ 23,607,771 $ 500,167 $ 915,812
Mortality and expense risk charges (Note
3).................................... (813,756) (538,544) (3,857,224) (119,164) (116,590)
------------ ----------- ------------ ----------- -----------
Net investment income................... 2,200,379 2,192,556 19,750,547 381,003 799,222
------------ ----------- ------------ ----------- -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales................... 20,934,612 13,561,684 102,710,901 2,186,169 2,265,437
Cost of shares sold................... (13,018,209) (8,839,331) (57,973,576) (1,908,317) (2,217,960)
------------ ----------- ------------ ----------- -----------
Net realized gain on investments........ 7,916,403 4,722,353 44,737,325 277,852 47,477
Net increase in unrealized appreciation
(depreciation) of investments......... (5,669,218) (4,325,400) (48,532,620) 405,104 (710,908)
------------ ----------- ------------ ----------- -----------
Net realized and unrealized gain (loss)
on investments........................ 2,247,185 396,953 (3,795,295) 682,956 (663,431)
------------ ----------- ------------ ----------- -----------
Net increase in net assets resulting
from operations....................... $ 4,447,564 $ 2,589,509 $ 15,955,252 $ 1,063,959 $ 135,791
============ =========== ============ =========== ===========
</TABLE>
See notes to financial statements.
78
<PAGE> 98
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
VALUEMASTER
-----------------------------------------------------
OCC ACCUMULATION TRUST
-----------------------------------------------------
BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Dividend income........................................ $ 39,392 $ 21,800 $ 11,140 $ 466,768
Mortality and expense risk charges (Note 3)............ (7,444) (4,165) (2,410) (149,944)
----------- ----------- ----------- -----------
Net investment income.................................. 31,948 17,635 8,730 316,824
----------- ----------- ----------- -----------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales.................................. 78,315 131,436 139,670 4,335,672
Cost of shares sold.................................. (75,328) (66,198) (87,742) (2,275,924)
----------- ----------- ----------- -----------
Net realized gain on investments....................... 2,987 65,238 51,928 2,059,748
Net increase (decrease) in unrealized appreciation of
investments.......................................... 4,164 (46,441) (68,424) (1,784,329)
----------- ----------- ----------- -----------
Net realized and unrealized gain (loss) on
investments.......................................... 7,151 18,797 (16,496) 275,419
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations........................................... $ 39,099 $ 36,432 $ (7,766) $ 592,243
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
79
<PAGE> 99
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
-------------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM BOND
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------------- -------------------------
1998 1997 1998 1997 1998 1997 1998 1997
-------- -------- -------- -------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income....... $ 40,592 $ 19,434 $ 47,069 $ 29,596 $ 320,184 $ 284,214 $ 630,153 $ 507,617
Net realized gain on
investments............... 30,177 32,694 29,180 13,051 133,811 104,618 507,345 100,826
Net increase (decrease) in
unrealized appreciation of
investments............... (7,398) 19,810 (39,218) 37,678 74,736 42,476 203,832 766,700
-------- -------- -------- -------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations... 63,371 71,938 37,031 80,325 528,731 431,308 1,341,330 1,375,143
-------- -------- -------- -------- ----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the
issuance of units......... 0 0 0 1,714 5,241,941 2,659,796 8,276,703 3,496,284
Net asset value of units
redeemed or used to meet
contract obligations...... (40,219) (27,729) (46,377) (4,757) (2,884,226) (1,677,836) (2,329,561) (1,307,957)
-------- -------- -------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) from
unit transactions........... (40,219) (27,729) (46,377) (3,043) 2,357,715 981,960 5,947,142 2,188,327
-------- -------- -------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets...................... 23,152 44,209 (9,346) 77,282 2,886,446 1,413,268 7,288,472 3,563,470
Net assets beginning of
year........................ 291,598 247,389 347,889 270,607 7,904,825 6,491,557 13,897,512 10,334,042
-------- -------- -------- -------- ----------- ----------- ----------- -----------
Net assets end of year*....... $314,750 $291,598 $338,543 $347,889 $10,791,271 $ 7,904,825 $21,185,984 $13,897,512
======== ======== ======== ======== =========== =========== =========== ===========
Units outstanding beginning of
year........................ 7,284 7,976 9,384 9,465 436,486 381,313 604,629 503,775
Units issued during the
year........................ 0 0 0 619 277,572 152,349 341,631 162,590
Units redeemed during the
year........................ (941) (692) (1,177) (700) (152,565) (97,176) (98,632) (61,736)
-------- -------- -------- -------- ----------- ----------- ----------- -----------
Units outstanding end of
year........................ 6,343 7,284 8,207 9,384 561,493 436,486 847,628 604,629
======== ======== ======== ======== =========== =========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 89,650 $ 49,058 $174,268 $127,199 $ 1,867,789 $ 1,547,605 $ 3,313,808 $ 2,683,655
</TABLE>
See notes to financial statements.
80
<PAGE> 100
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
-----------------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------------
GOVERNMENT
DIVERSIFIED MONEY MARKET SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ---------------------------- ------------------------
1998 1997 1998 1997 1998 1997
-------- -------- ------------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 24,140 $ 9,492 $ 1,275,552 $ 748,412 $ 93,950 $ 43,640
Net realized gain on
investments.................... 13,977 22,559 0 0 82,016 13,453
Net increase (decrease) in
unrealized appreciation of
investments.................... (14,958) 2,068 0 0 72,464 82,489
-------- -------- ------------- ------------ ----------- ----------
Net increase in net assets
resulting from operations........ 23,159 34,119 1,275,552 748,412 248,430 139,582
-------- -------- ------------- ------------ ----------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 0 674 142,540,251 96,655,000 4,518,283 1,902,833
Net asset value of units redeemed
or used to meet contract
obligations.................... (62,443) (77,004) (118,190,820) (93,779,042) (1,075,338) (278,247)
-------- -------- ------------- ------------ ----------- ----------
Net increase (decrease) from unit
transactions..................... (62,443) (76,330) 24,349,431 2,875,958 3,442,945 1,624,586
-------- -------- ------------- ------------ ----------- ----------
Net increase (decrease) in net
assets........................... (39,284) (42,211) 25,624,983 3,624,370 3,691,375 1,764,168
Net assets beginning of year....... 137,795 180,006 23,334,035 19,709,665 3,578,938 1,814,770
-------- -------- ------------- ------------ ----------- ----------
Net assets end of year*............ $ 98,511 $137,795 $ 48,959,018 $ 23,334,035 $ 7,270,313 $3,578,938
======== ======== ============= ============ =========== ==========
Units outstanding beginning of
year............................. 4,707 7,590 1,543,043 1,355,274 302,006 162,102
Units issued during the year....... 0 34 9,230,746 6,511,788 361,047 164,256
Units redeemed during the year..... (1,953) (2,917) (7,659,725) (6,324,019) (81,758) (24,352)
-------- -------- ------------- ------------ ----------- ----------
Units outstanding end of year...... 2,754 4,707 3,114,064 1,543,043 581,295 302,006
======== ======== ============= ============ =========== ==========
- ---------------
* Includes undistributed net
investment income of: $130,644 $106,504 $ 4,133,093 $ 2,857,541 $ 144,739 $ 50,789
<CAPTION>
VALUEMASTER
-------------------------
MONY SERIES FUND, INC.
-------------------------
MONEY
MARKET
SUBACCOUNT
-------------------------
1998 1997
----------- -----------
<S> <C> <C>
From operations:
Net investment income............ $ 17,105 $ 17,237
Net realized gain on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
----------- -----------
Net increase in net assets
resulting from operations........ 17,105 17,237
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,808,234 1,080,192
Net asset value of units redeemed
or used to meet contract
obligations.................... (1,773,805) (1,076,942)
----------- -----------
Net increase (decrease) from unit
transactions..................... 34,429 3,250
----------- -----------
Net increase (decrease) in net
assets........................... 51,534 20,487
Net assets beginning of year....... 464,272 443,785
----------- -----------
Net assets end of year*............ $ 515,806 $ 464,272
=========== ===========
Units outstanding beginning of
year............................. 33,429 33,041
Units issued during the year....... 126,735 78,351
Units redeemed during the year..... (124,205) (77,963)
----------- -----------
Units outstanding end of year...... 35,959 33,429
=========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 69,630 $ 52,525
</TABLE>
See notes to financial statements.
81
<PAGE> 101
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYMASTER
-------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------- -------------------------- ---------------------------
1998 1997 1998 1997 1998 1997
------------ ----------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income..... $ 2,200,379 $ 1,348,889 $ 2,192,556 $ 2,969,759 $ 19,750,547 $ 10,160,903
Net realized gain on
investments............. 7,916,403 4,582,451 4,722,353 1,806,789 44,737,325 24,484,707
Net increase (decrease) in
unrealized appreciation
of investments.......... (5,669,218) 4,305,948 (4,325,400) 5,408,719 (48,532,620) 18,352,149
------------ ----------- ------------ ----------- ------------ ------------
Net increase in net assets
resulting from
operations................ 4,447,564 10,237,288 2,589,509 10,185,267 15,955,252 52,997,759
------------ ----------- ------------ ----------- ------------ ------------
From unit transactions:
Net proceeds from the
issuance of units....... 22,879,320 19,541,544 14,502,302 11,606,860 83,188,883 69,610,057
Net asset value of units
redeemed or used to meet
contract obligations.... (18,619,183) (8,148,291) (12,018,701) (4,634,574) (94,338,742) (46,391,571)
------------ ----------- ------------ ----------- ------------ ------------
Net increase (decrease) from
unit transactions......... 4,260,137 11,393,253 2,483,601 6,972,286 (11,149,859) 23,218,486
------------ ----------- ------------ ----------- ------------ ------------
Net increase in net
assets.................... 8,707,701 21,630,541 5,073,110 17,157,553 4,805,393 76,216,245
Net assets beginning of
year...................... 58,897,778 37,267,237 39,297,930 22,140,377 297,065,970 220,849,725
------------ ----------- ------------ ----------- ------------ ------------
Net assets end of year*..... $ 67,605,479 $58,897,778 $ 44,371,040 $39,297,930 $301,871,363 $297,065,970
============ =========== ============ =========== ============ ============
Units outstanding beginning
of year................... 1,428,789 1,123,086 1,042,727 837,807 5,633,476 5,150,485
Units issued during the
year...................... 526,017 526,272 373,071 347,201 1,521,008 1,464,377
Units redeemed during the
year...................... (443,970) (220,569) (328,392) (142,281) (1,785,212) (981,386)
------------ ----------- ------------ ----------- ------------ ------------
Units outstanding end of
year...................... 1,510,836 1,428,789 1,087,406 1,042,727 5,369,272 5,633,476
============ =========== ============ =========== ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 5,015,479 $ 2,815,100 $ 7,097,100 $ 4,904,544 $ 42,513,586 $ 22,763,039
<CAPTION>
MONYMASTER
----------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------------- ------------------------
1998 1997 1998 1997
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
From operations:
Net investment income..... $ 381,003 $ 157,687 $ 799,222 $ 392,417
Net realized gain on
investments............. 277,852 315,164 47,477 42,368
Net increase (decrease) in
unrealized appreciation
of investments.......... 405,104 (304,765) (710,908) 131,750
----------- ----------- ----------- ----------
Net increase in net assets
resulting from
operations................ 1,063,959 168,086 135,791 566,535
----------- ----------- ----------- ----------
From unit transactions:
Net proceeds from the
issuance of units....... 2,826,722 3,852,044 5,348,741 3,929,223
Net asset value of units
redeemed or used to meet
contract obligations.... (2,036,923) (1,301,430) (1,925,911) (420,640)
----------- ----------- ----------- ----------
Net increase (decrease) from
unit transactions......... 789,799 2,550,614 3,422,830 3,508,583
----------- ----------- ----------- ----------
Net increase in net
assets.................... 1,853,758 2,718,700 3,558,621 4,075,118
Net assets beginning of
year...................... 8,619,818 5,901,118 7,265,062 3,189,944
----------- ----------- ----------- ----------
Net assets end of year*..... $10,473,576 $ 8,619,818 $10,823,683 $7,265,062
=========== =========== =========== ==========
Units outstanding beginning
of year................... 664,152 472,752 502,892 247,295
Units issued during the
year...................... 200,326 289,408 363,458 286,812
Units redeemed during the
year...................... (152,927) (98,008) (134,007) (31,215)
----------- ----------- ----------- ----------
Units outstanding end of
year...................... 711,551 664,152 732,343 502,892
=========== =========== =========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 591,208 $ 210,205 $ 1,376,102 $ 576,880
</TABLE>
See notes to financial statements.
82
<PAGE> 102
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VALUEMASTER
----------------------------------------------------------------------------------------------
OCC ACCUMULATION TRUST
----------------------------------------------------------------------------------------------
BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- -------------------- --------------------- -------------------------
1998 1997 1998 1997 1998 1997 1998 1997
-------- -------- --------- -------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 31,948 $ 28,149 $ 17,635 $ 10,790 $ 8,730 $ 11,908 $ 316,824 $ 378,567
Net realized gain (loss) on
investments.................. 2,987 (9,584) 65,238 35,842 51,928 37,759 2,059,748 1,555,405
Net increase (decrease) in
unrealized appreciation of
investments.................. 4,164 12,352 (46,441) 42,275 (68,424) 7,206 (1,784,329) 369,175
-------- -------- --------- -------- --------- --------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations..................... 39,099 30,917 36,432 88,907 (7,766) 56,873 592,243 2,303,147
-------- -------- --------- -------- --------- --------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units..................... 116,160 20,982 32,150 4,581 33,004 0 1,794,905 1,042,873
Net asset value of units
redeemed or used to meet
contract obligations......... (65,871) (30,553) (127,289) (71,904) (137,264) (136,759) (4,139,893) (3,207,772)
-------- -------- --------- -------- --------- --------- ----------- -----------
Net increase (decrease) from unit
transactions................... 50,289 (9,571) (95,139) (67,323) (104,260) (136,759) (2,344,988) (2,164,899)
-------- -------- --------- -------- --------- --------- ----------- -----------
Net increase (decrease) in net
assets......................... 89,388 21,346 (58,707) 21,584 (112,026) (79,886) (1,752,745) 138,248
Net assets beginning of year..... 590,466 569,120 392,027 370,443 260,650 340,536 12,181,976 12,043,728
-------- -------- --------- -------- --------- --------- ----------- -----------
Net assets end of year*.......... $679,854 $590,466 $ 333,320 $392,027 $ 148,624 $ 260,650 $10,429,231 $12,181,976
======== ======== ========= ======== ========= ========= =========== ===========
Units outstanding beginning of
year........................... 34,521 35,119 9,563 11,304 7,532 11,883 238,580 284,927
Units issued during the year..... 6,460 1,264 729 153 991 0 35,581 21,763
Units redeemed during the year... (3,774) (1,862) (2,934) (1,894) (3,742) (4,351) (81,112) (68,110)
-------- -------- --------- -------- --------- --------- ----------- -----------
Units outstanding end of year.... 37,207 34,521 7,358 9,563 4,781 7,532 193,049 238,580
======== ======== ========= ======== ========= ========= =========== ===========
- ---------------
* Includes undistributed net
investment income of: $154,732 $122,784 $ 29,660 $ 12,025 $ 32,390 $ 23,660 $ 694,423 $ 377,599
</TABLE>
See notes to financial statements.
83
<PAGE> 103
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 MONY Life Insurance Company
("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 (MONYMaster and
ValueMaster). 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. (the
"Fund"), Enterprise Accumulation Trust ("Enterprise") or the OCC Accumulation
Trust ("OCC") (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.
On December 21, 1998, the Variable Account effected a substitution by
redeeming shares of the OCC Accumulation Trust Money Market Portfolio and using
the redemption proceeds to purchase shares of the MONY Series Fund, Inc. Money
Market 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 hereinafter and should be
read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value 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 value is based on the amortized cost of
the securities held which approximates value.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets held by the Variable Account.
Purchase payments received from MONY by the Variable Account represent
gross purchase payments recorded by MONY less deductions retained for any
premium taxes.
A periodic deduction is made from the cash value of the contract for the
annual contract charge. The deduction is for the expenses of administration and
is treated by the Variable Account as a contractholder redemption. The amount
deducted for all subaccounts for 1998 was $277,212.
84
<PAGE> 104
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 1.25 percent of average daily net assets
of the subaccounts. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
MONYMASTER
----------------------------------------------------------------------------------------------
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................. 8,082 12,837 710,866 1,018,878 6,686 23,334,035 328,644
Amount................. $170,806 $215,365 $ 7,591,341 $12,421,256 $107,587 $ 23,334,035 $ 3,448,871
-------- -------- ----------- ----------- -------- ------------- -----------
Shares acquired:
Shares................. 154 252 479,109 615,493 527 147,547,679 418,403
Amount................. $ 5,215 $ 6,382 $ 5,344,447 $ 8,532,633 $ 9,435 $ 147,547,679 $ 4,599,575
Shares received for
reinvestment of
dividends:
Shares................. 1,302 1,980 40,491 64,420 1,439 1,686,933 14,625
Amount................. $ 44,099 $ 51,132 $ 433,654 $ 838,752 $ 25,421 $ 1,686,933 $ 154,732
Shares redeemed:
Shares................. (1,298) (2,023) (278,015) (203,662) (3,704) (123,609,629) (110,794)
Amount................. $(18,764) $(27,642) $(2,966,391) $(2,286,745) $(59,182) $(123,609,629) $(1,135,396)
-------- -------- ----------- ----------- -------- ------------- -----------
Net change:
Shares................. 158 209 241,585 476,251 (1,738) 25,624,983 322,234
Amount................. $ 30,550 $ 29,872 $ 2,811,710 $ 7,084,640 $(24,326) $ 25,624,983 $ 3,618,911
-------- -------- ----------- ----------- -------- ------------- -----------
Shares end of year:
Shares................. 8,240 13,046 952,451 1,495,129 4,948 48,959,018 650,878
Amount................. $201,356 $245,237 $10,403,051 $19,505,896 $ 83,261 $ 48,959,018 $ 7,067,782
======== ======== =========== =========== ======== ============= ===========
<CAPTION>
VALUEMASTER
-----------
MONEY
MARKET
PORTFOLIO
-----------
<S> <C>
Shares beginning of year:
Shares................. 0
Amount................. $ 0
-----------
Shares acquired:
Shares................. 1,379,305
Amount................. $ 1,379,305
Shares received for
reinvestment of
dividends:
Shares................. 1,741
Amount................. $ 1,741
Shares redeemed:
Shares................. (865,240)
Amount................. $ (865,240)
-----------
Net change:
Shares................. 515,806
Amount................. $ 515,806
-----------
Shares end of year:
Shares................. 515,806
Amount................. $ 515,806
===========
</TABLE>
85
<PAGE> 105
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
MONYMASTER
-----------------------------------------------------------------------
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...................................... 1,678,478 1,471,833 7,284,600 1,394,793 1,272,340
Amount...................................... $ 46,784,804 $31,594,208 $223,370,538 $ 8,462,886 $ 7,036,463
------------ ----------- ------------ ----------- -----------
Shares acquired:
Shares...................................... 657,270 554,898 2,070,044 424,520 991,885
Amount...................................... $ 24,380,993 $15,506,741 $ 87,703,818 $ 2,856,804 $ 5,571,677
Shares received for reinvestment of dividends:
Shares...................................... 82,174 104,280 582,046 77,067 166,456
Amount...................................... $ 3,014,135 $ 2,731,100 $ 23,607,771 $ 500,167 $ 915,812
Shares redeemed:
Shares...................................... (581,815) (509,262) (2,494,102) (342,437) (415,098)
Amount...................................... $(13,018,209) $(8,839,331) $(57,973,576) $(1,908,317) $(2,217,960)
------------ ----------- ------------ ----------- -----------
Net change:
Shares...................................... 157,629 149,916 157,988 159,150 743,243
Amount...................................... $ 14,376,919 $ 9,398,510 $ 53,338,013 $ 1,448,654 $ 4,269,529
------------ ----------- ------------ ----------- -----------
Shares end of year:
Shares...................................... 1,836,107 1,621,749 7,442,588 1,553,943 2,015,583
Amount...................................... $ 61,161,723 $40,992,718 $276,708,551 $ 9,911,540 $11,305,992
============ =========== ============ =========== ===========
</TABLE>
Investments in OCC Accumulation Trust at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
VALUEMASTER
-----------------------------------------------------------------
MONEY US GOVERNMENT
MARKET INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares......................................... 464,272 56,181 10,734 9,884 287,446
Amount......................................... $ 464,272 $574,919 $225,366 $177,907 $ 7,308,176
----------- -------- -------- -------- -----------
Shares acquired:
Shares......................................... 1,808,465 11,266 851 1,302 44,606
Amount......................................... $ 1,808,465 $121,160 $ 32,132 $ 33,000 $ 1,840,740
Shares received for reinvestment of dividends:
Shares......................................... 21,969 3,699 592 417 10,785
Amount......................................... $ 21,969 $ 39,392 $ 21,800 $ 11,140 $ 466,768
Shares redeemed:
Shares......................................... (2,294,706) (7,371) (3,565) (5,170) (104,400)
Amount......................................... $(2,294,706) $(75,328) $(66,198) $(87,742) $(2,275,924)
----------- -------- -------- -------- -----------
Net change:
Shares......................................... (464,272) 7,594 (2,122) (3,451) (49,009)
Amount......................................... $ (464,272) $ 85,224 $(12,266) $(43,602) $ 31,584
----------- -------- -------- -------- -----------
Shares end of year:
Shares......................................... 0 63,775 8,612 6,433 238,437
Amount......................................... $ 0 $660,143 $213,100 $134,305 $ 7,339,760
=========== ======== ======== ======== ===========
</TABLE>
86
<PAGE> 106
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account A -- MONYMaster/ValueMaster:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the subaccounts
constituting MONY Variable Account A (comprising, respectively, MONYMaster's
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified, Money Market, Government Securities, Equity, Small Cap, Managed,
International Growth, and High Yield Bond Subaccounts; and ValueMaster's Money
Market, Bond, Equity, Small Cap, and Managed Subaccounts) at December 31, 1998,
the results of each of their operations for the year then ended and the changes
in each of their net assets for each of the two years in the period then ended,
in conformity with generally accepted accounting principles. These financial
statements are the responsibility of MONY Life Insurance Company's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
87
<PAGE> 107
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
The economic environment in 1999 is characterized by a slower rate of
economic growth, continued low inflation and excess capacity in most commodities
and as a result a squeeze on corporate earnings. Companies who can achieve unit
growth and who do not need price increases to succeed should be favored. This
means a continued emphasis on technology -- hardware and software,
telecommunications -- telephones and equipment, healthcare and entertainment
companies. Financial stocks which benefit from lower interest rates are also
represented in 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
<TABLE>
<CAPTION>
MSF EQUITY GROWTH
PORTFOLIO S&P 500
<S> <C> <C>
12/31/88 10000 10000
12/31/89 13092 13149
12/31/90 12895 12732
12/31/91 17365 16622
12/31/92 17213 17897
12/31/93 18885 19685
12/31/94 19290 19943
12/31/95 25181 27407
12/31/96 30456 33656
12/31/97 39799 44897
12/31/98 49930 57782
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
25.46% 21.45% 17.44%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
88
<PAGE> 108
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
With the expectation for slower economic growth, low inflation and lack of
pricing power and uncertain earnings, selectivity becomes important. In this
environment, companies who can achieve unit growth and who do not need price
increases to succeed should be favored. This means an emphasis on
healthcare -- pharmaceuticals and hospital supplies and
telecommunications -- primarily telephones. Selected technology names such as
GE, Xerox and Pitney Bowes should also do well. Financials -- banks and
insurance should benefit from lower interest rates.
At the other end of spectrum from the stable growers are the economy
sensitive or cyclical stocks. The economic backdrop seems all wrong for them,
but that is already well known and is reflected in the very depressed prices
they sell at. If S.E. Asia is stabilizing and shows any signs of improvement;
the energy, basic materials and capital goods stocks which were hurt the most by
the economic crisis should benefit. The Portfolio is slowly increasing exposure
to international oils, papers, forest products and chemical stocks. It may be
early, but usually these groups move in anticipation of a change in the world
outlook.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MSF EQUITY INCOME
PORTFOLIO S&P 500
<S> <C> <C>
12/31/88 10000 10000
12/31/89 12219 13149
12/31/90 11395 12732
12/31/91 13711 16622
12/31/92 15121 17897
12/31/93 17259 19685
12/31/94 17394 19943
12/31/95 23155 27407
12/31/96 27730 33656
12/31/97 36398 44897
12/31/98 40997 57782
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
12.63% 18.88% 15.14%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
89
<PAGE> 109
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
The Intermediate Term Bond Portfolio is a diversified U.S. Treasury and
corporate bond fund that seeks to maximize income and capital appreciation
through the investment in bonds with maturities averaging between four and eight
years. The Portfolio maintained an average maturity of 4.98 years as of December
31, 1998.
For the quarter ended December 31, 1998, the Portfolio earned a total
return of .27%. For the one year period ended December 31, 1998, the Portfolio
earned a total return of 7.44% and for the five and ten year periods the
Portfolio earned an average annual return of 6.29% and 7.97%, respectively.
The bond market stabilized during the last quarter of 1998, after the
Federal Reserve went "global" and cut interest rates by 75 basis points.
Interest rates, as measured by the benchmark five-year U.S. Treasury, gave up
some of their gains and backed up 32 basis points to close the quarter at 4.54%.
The yield curve, as measured by the spread differential between the 2-yr U.S.
Treasury note and the 30-yr U.S. Treasury bond, flattened. Short rates increased
relative to bonds as market participants speculated that the Federal Reserve was
"on hold" for the time being.
It took a surprise third easing of monetary policy by the Federal Reserve
to calm markets worldwide after the implosion of the emerging markets crisis and
the reporting of heavy losses incurred by the deleveraging of various hedge
funds. Capital markets reopened, liquidity returned, corporate spreads tightened
and investors refocused on fundamentals.
As for the corporate sector, bonds continued to take their cue from the
stock market and spreads recouped. Corporates enjoyed a tremendous rally buoyed
by the return of liquidity to the market place despite disappointing earning
projections. The market outperformed Treasuries in the fourth quarter; however
for the year Corporates underperformed. Going forward spreads are expected to be
volatile with the better-quality names performing the best in the High Grade
Corporate Market.
Our view is that the domestic economy will experience a moderate decline in
growth but a serious recession will be averted, as consumer spending will remain
firm, emerging markets will continue to stabilize and the Federal Reserve will
stand ready to come to the rescue and ease monetary policy when necessary.
Nonetheless, there are a few important wildcards that we need to keep in mind:
the uncertainty regarding the U.S. political landscape, developments in emerging
markets, and Y2K problems.
The Portfolio is currently invested in corporate issuers, comprising 43% of
total invested assets. We continue to increase the holdings of government
obligations and they now make up 42% of the Portfolio. Mortgage-backed
securities represent 9% of the Portfolio, asset-backed securities 4% and the
balance is in cash equivalents. The average Moody's rating on issues in the
Portfolio is Aa3, reflecting emphasis on higher quality debt issuers.
90
<PAGE> 110
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO -- (CONTINUED)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS
INTERMEDIATE GOV/CORP INDEX
<TABLE>
<CAPTION>
LEHMAN BROTHERS
MSF INTERMEDIATE TERM INTERMEDIATE GOV/CORP
BOND PORTFOLIO INDEX
<S> <C> <C>
12/31/88 10000 10000
12/31/89 11166 11277
12/31/90 11943 12310
12/31/91 13768 14110
12/31/92 14719 15121
12/31/93 15875 16451
12/31/94 15633 16133
12/31/95 17951 18606
12/31/96 18613 19360
12/31/97 20047 20883
12/31/98 21538 22646
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
7.44% 6.29% 7.97%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
91
<PAGE> 111
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
The Long Term Bond Portfolio is a diversified U.S. Treasury and corporate
bond fund that seeks to maximize income and capital appreciation through the
investment in bonds with maturities generally longer than eight years. The
Portfolio's performance is expected to be more volatile than other fixed income
funds with shorter average maturities, with both the Portfolio's risk and
ultimate return expected to be greater. The Portfolio had an average maturity of
19.2 years and a duration of 9.97 years as of December 31, 1998.
For the quarter ended December 31, 1998, the Portfolio earned a total
return of -.21%. For the one year period ended December 31, 1998, the Portfolio
earned a total return of 10.08% and for the five and ten year periods the
Portfolio earned an average annual return of 8.72% and 10.68%, respectively.
The bond market stabilized during the last quarter of 1998, after the
Federal Reserve went "global" and cut interest rates by 75 basis points.
Treasury's gave up some of its gains during the quarter, though not as much as
intermediate Treasuries, and backed up 13 basis points on the Thirty year U.S.
Treasury Bond to close the quarter at 5.09%. The yield curve, as measured by the
spread differential between the 2-yr U.S. Treasury note and the 30-yr U.S.
Treasury bond, flattened. Short rates increased relative to bonds as market
participants speculated that the Federal Reserve was "on hold" for the time
being.
It took a surprise third easing of monetary policy by the Federal Reserve
to calm markets worldwide after the implosion of the emerging markets crisis and
the reporting of heavy losses incurred by the deleveraging of various hedge
funds. Capital markets reopened, liquidity returned, corporate spreads tightened
and investors refocused on fundamentals.
As for the corporate sector, bonds continued to take their cue from the
stock market and corporate bonds rebounded as liquidity and the domestic
economic outlook began to improve. Liquidity returned during the quarter with a
$4.8 billion Associate Corp. deal making November the largest single month of
corporate supply. Corporates enjoyed a tremendous rally despite disappointing
earning projections, however, Corporates underperformed Treasuries for the year.
Utility and finance sectors were principle outperformers during the quarter.
Sectors such as energy, chemicals, and most other commodity-sensitive sectors
performed poorly most of the quarter and will most likely continue into 1999.
Similar to the previous quarter, we continued to add to our Treasury
positions coupled with a modest increase in the triple-A U.S. Government Agency
sector. Also, we have been maintaining a higher quality, conservative corporate
bond profile. For example, we purchased Lucent and Merck with a ten year and
thirty year maturity, respectively. Going forward our view will be that the
domestic economy begins to slow down early in the New Year, but a recession will
be averted. Without a recession, rates should continue to drift gradually
higher. This transition to a slower growth environment should keep corporate
fundamentals relatively sound. In particular, we continue to believe that
inflation will be benign. We advocate a defensive approach toward sector and
security selection such as non-cyclical companies and limited foreign exposure.
With capital spending likely to slow sharply, capacity utilization rates
dropping, and pressure on profit margins likely to continue, we will pursue
corporate securities with a strong credit profile.
The Portfolio is currently invested in 34 corporate issuers, comprising 34%
of total invested assets, government obligations represent 49%, with 5% in
mortgage and asset-backed securities. The remaining 12% represent cash
equivalents. Our continued emphasis on higher quality is reflected in the
average Moody's rating on issues in the Portfolio is Aa2.
92
<PAGE> 112
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO -- (CONTINUED)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO AND TOTAL RETURN ON LEHMAN BROTHERS LONG GOV/CORP INDEX
<TABLE>
<CAPTION>
MSF LONG TERM BOND LEHMAN BROTHERS LONG
PORTFOLIO GOV/CORP INDEX
<S> <C> <C>
12/31/88 10000 10000
12/31/89 11695 11754
12/31/90 12427 12512
12/31/91 14617 14956
12/31/92 15901 16231
12/31/93 18163 18854
12/31/94 17048 17518
12/31/95 22170 22764
12/31/96 22101 22796
12/31/97 25071 26106
12/31/98 27598 29179
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------- ------- --------
<S> <C> <C>
10.08% 8.72% 10.68%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
93
<PAGE> 113
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
Whether the image is a rubber band, Dracula, or that battery bunny, the
stocks proved in the fourth quarter that the great bull market of the 90's still
runs. A late summer scare, that in retrospect looks to have been more of an
isolated meltdown of few overleveraged hedge funds rather than a global crisis,
hit its worst as the quarter began; from there prices rose with little
interruption, making 1998 another year of double-digit returns for most market
indices.
As the FUD (Fear, Uncertainty, Doubt) receded, investors backed away from
safe but expensive U.S. Treasuries. Interest rates crept up, and most bond
indices ended the quarter with only nominal gains.
On the economic front, the resilient U.S. consumer shrugged off any
concerns about investment portfolios and kept on buying, with autos and housing
the favorites. Supported by this consumer spending, the economy grew at a robust
rate, above 3%, eliminating any threat of recession in the near term.
The benchmark S&P 500 Index was up 21.3% for the quarter, and 28.75% for
the year. The benchmark Lehman Brothers Government/Corporate Bond Index rose by
0.1% for the quarter, 9.5% for the year.
Our view is that the economy will cool in the new year, but that it will
not slip into a recession. Stocks remain fully priced, and may be vulnerable to
any pullback in the volatile internet sector. Interest rates may see some upward
pressure as growth continues in an economy at near full capacity, and the
one-time disinflation shock of a collapse in oil prices recedes.
For the quarter ended December 31, 1998, the Portfolio earned a total
return of 16.98%. For the one year period ended December 31, 1998, the Portfolio
earned a total return of 23.69%. For the five year and ten year periods ended
December 31, 1998, the Portfolio earned an average annual return of 17.67% and
14.31%, respectively. These returns take into account charges imposed by the
Portfolio. Additional charges are imposed by the Variable Accounts. Of course,
past performance does not guarantee future investment results.
As of December 31, 1998, the Diversified Portfolio was invested 79% in
common stocks, 17% in bonds, and 4% in money-market equivalents.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO AND TOTAL RETURN ON S&P 500 INDEX
<TABLE>
<CAPTION>
MSF DIVERSIFIED
PORTFOLIO S&P 500 INDEX
<S> <C> <C>
12/31/88 10000 10000
12/31/89 12214 13149
12/31/90 12512 12732
12/31/91 15067 16622
12/31/92 15129 17897
12/31/93 16884 19685
12/31/94 17057 19943
12/31/95 21546 27407
12/31/96 24657 33656
12/31/97 30813 44897
12/31/98 38113 57782
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
23.69% 17.67% 14.31%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
94
<PAGE> 114
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
The Government Securities Portfolio is a bond fund that seeks to maximize
income and capital appreciation through the investment in high quality debt
obligations issued or guaranteed by the U.S. Government, its Agencies, and
instrumentalities. The Portfolio is expected to have a dollar weighted average
life between one and five years under most circumstances. The Portfolio had an
average maturity of 3.1 years at December 31, 1998.
For the quarter ended December 31, 1998, the Portfolio earned a total
return of .45%. For the one year period ended December 31, 1998, the Portfolio
earned a total return of 6.85% and 5.30% for the five year period. Since
Inception on May 31, 1991, the Portfolio earned an average annual return of
6.69% for the period ended December 31, 1998.
U.S. Treasuries gave back some of their earlier-year gains in the last
quarter, as global investors gradually moved away from the comforting but
ultimately expensive safety and liquidity of government securities. Despite two
1/4 point easings by the Federal Reserve, (on the heels of another ease late in
the third quarter), Treasury yields moved up by 15-25 basis points (hundredths
of a percentage point). The fall in the price of government bonds mirrored their
rise in earlier months, reflecting, first the fear of global economic recession,
and then the reversal of those fears. Volatility declined, and much of the
earlier yield curve inversion -- the relatively rare situation where all longer
maturity Treasury securities trade at a yield below the short-term Fed Funds
Rate -- was reversed. The Funds' better performance in the quarter resulted from
an underweighting in the poorly performing intermediate Treasury sector. Our
view is that while domestic economic growth will cool off somewhat from the
torrid pace of 1998, there is no recession in the near future. The Fed has
finished easing for the interim, and government yields are more likely to drift
higher. The Portfolio remains positioned defensively, slightly short of target
duration, with bias toward higher-yielding government Agency securities.
The Portfolio is currently invested 100% in U.S. Treasury and Agency
obligations. Investments made in the Government Securities Portfolio are not
insured nor guaranteed by the U.S. Government.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS IN MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO FROM INCEPTION (5/1/91) THROUGH 12/31/98 AND
TOTAL RETURN ON LEHMAN BROTHERS INTERMEDIATE GOVERNMENT BOND INDEX
<TABLE>
<CAPTION>
LEHMAN BROTHERS
MSF GOVERNMENT INTERMEDIATE GOV BOND
SECURITIES PORTFOLIO INDEX
<S> <C> <C>
5/14/91 10000 10000
12/31/91 10974 11411
12/31/92 11743 12202
12/31/93 12698 13199
12/31/94 12493 12968
12/31/95 13854 14836
12/31/96 14356 15439
12/31/97 15386 16631
12/31/98 16441 18028
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS SINCE MAY 1, 1991
- ------ ------- -----------------
<S> <C> <C>
6.85% 5.30% 6.69%
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ASSUMES REINVESTMENT OF
DIVIDENDS.
95
<PAGE> 115
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
By year-end 1998, the global financial markets had staged a strong rebound
from the precarious state in which they found themselves at the end of September
and in the first half of October. Equity markets bounced back from their lows,
credit spreads contracted appreciably from their mid-October wides, and
liquidity largely returned to the capital markets. These conditions enabled new
issue markets for equities and bonds to become operable once again, since the
turmoil had all but shut down these markets. Even the money market securities
market experienced upheaval, as yields remained high while short-term Treasury
rates dropped. Lower-rated money market credits traded at historically wide
spreads. The return to more settled conditions was due in no small part to the
Fed's recognition, whether or not in concert with other central banks, of the
serious need to address the global economic and currency problems through a
shift to a program of easing monetary policy. As well, the Fed felt it prudent
to undertake its easing stance given the potential for non-domestic pressures to
spill over into the U.S. economy and cut short the historic expansion. The Fed's
moves restored confidence and brought the overnight fed funds rate target down
to 4.75%, a level consistent with an accommodative stance under more normal
economic conditions. However, the U.S. economy's performance by itself clearly
did not justify such a shift in Fed policy. Presently, there are many
crosscurrents at work as the Fed weighs an economy with robust domestic demand,
surging stock market, softening dollar, tightening credit spreads, quiescent
inflation, and a weak manufacturing sector against a backdrop of potentially
worrisome global financial conditions. Absent an exogenous shock to the system,
such a picture argues for a wait-and-see stance by the Fed.
The Treasury yield curve moved upward and steepened in the fourth quarter
with a particular increase in interest rates in the intermediate area from two
years to ten years. Interest rates on the long bond increased 13 basis points
(1/100 of a percentage point) during the quarter from a yield of 4.97% at
September 30, 1998 to 5.09% at year end. The short end also traded off, as
evidenced by the three-month T-bill's 10 basis point rise in yield from 4.36% at
September 30, 1998 to 4.46% at year end. The Fed's three easing moves since
September were due to the turmoil seen in global financial markets. Since the
unsettled conditions that prevailed have largely abated and the U.S. economy
continues its strong growth, market expectations are that the Fed is on hold for
the foreseeable future. Nevertheless, renewed problems in the global markets
(i.e., a major setback in Brazil's effort to address its fiscal woes) may push
the Fed to lower interest rates in the face of conflicting U.S. economic
conditions. The average maturity of the Portfolio will be adjusted selectively
to capitalize on opportunities where the Portfolio will be rewarded for duration
extension. Currently, there is no benefit afforded money market investors for
extending much beyond the thirty-day area. Consequently, the money market fund
is maintaining a shorter-than-target average maturity. At December 31, 1998 the
average maturity of the Portfolio was approximately 31.5 day.
The portfolio continues to be invested in high quality short-term
instruments, principally commercial paper. Our investment strategy is to
emphasize purchases of 30-90 day maturities to provide flexibility to respond to
any changes in the market without sacrificing current income. The 30-day and
7-day current yields of the Portfolio were 4.93% and 4.91%, respectively, as of
December 31, 1998.
Investments made in the Money Market Portfolio are not insured nor
guaranteed by the Federal Deposit Insurance Corporation or any other U.S.
government agency. Although the Portfolio seeks to preserve the value of
investment at $1.00 per share, it is possible to lose money by investing in the
Portfolio.
96
<PAGE> 116
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 97.0%
- ------------------------------------------------------------------
AIR TRANSPORTATION -- 2.5%
AMR Corp.* 400 $ 23,750
Delta Airlines, Inc. 600 31,200
UAL Corp.* 400 23,875
----------
78,825
----------
AUTOMOBILES -- 1.9%
Ford Motor Co. 500 29,344
General Motors Corp. Class (E) 400 28,625
----------
57,969
----------
BANKS/MAJOR -- 3.9%
BankAmerica Corp. 600 36,075
Chase Manhattan Corp. 500 34,032
Citigroup, Inc. 800 39,600
Morgan (JP) Co. 100 10,506
----------
120,213
----------
BANKS/REGIONAL -- 2.8%
BankBoston Corp. 500 19,469
First Union Corp. 400 24,325
Fleet Financial Group, Inc. 500 22,344
Mellon Bank Corp. 300 20,625
----------
86,763
----------
BEVERAGES/NON-ALCOHOLIC -- 0.4%
Coca-Cola Co. 200 13,375
----------
BIO-TECHNOLOGIES -- 2.8%
Amgen, Inc.* 500 52,281
BioGen* 400 33,200
----------
85,481
----------
CABLE TELEVISION -- 4.5%
Cablevision Systems, Inc. 500 25,094
Comcast Corp. Class (A) 1,000 58,687
Tele-Communications Inc. 1,000 55,312
----------
139,093
----------
CHEMICALS -- 1.6%
duPont (E.I.) de Nemours & Co. 500 26,531
Monsanto Co. 500 23,750
----------
50,281
----------
DRUGS -- 8.5%
American Home Products Corp. 600 33,788
Bristol Meyers Squibb Co. 300 40,144
Lilly (Eli) & Co. 400 35,550
Pfizer, Inc. 400 50,175
Schering-Plough Corp. 600 33,150
Smithkline Beecham, plc, ADR 400 27,800
Warner-Lambert Co. 600 45,112
----------
265,719
----------
ELECTRICAL EQUIPMENT -- 4.5%
Emerson Electric Co. 600 37,537
General Electric Co. 1,000 102,063
----------
139,600
----------
ELECTRONICS -- 5.5%
Applied Materials, Inc.* 800 $ 34,150
Hewlett-Packard Co. 500 34,156
Intel Corp. 500 59,282
Texas Instruments, Inc. 500 42,781
----------
170,369
----------
ENTERTAINMENT -- 3.4%
Cumulus Media, Inc* 500 8,313
Disney (Walt) Co. 700 21,000
Infinity Broadcasting Co.* 500 13,688
Time Warner, Inc. 1,000 62,062
----------
105,063
----------
FINANCIAL SERVICES -- 1.5%
American Express Co. 200 20,450
Associates First Capital Corp. 600 25,425
----------
45,875
----------
HOSPITAL MANAGEMENT -- 1.9%
Sunrise Assisted Living, Inc.* 1,000 51,875
United Healthcare Corp. 200 8,612
----------
60,487
----------
HOSPITAL SUPPLIES -- 1.4%
Johnson & Johnson 500 41,938
----------
HOUSEHOLD PRODUCTS -- 0.6%
Procter & Gamble Co. 200 18,263
----------
INSURANCE -- 4.2%
Aetna, Inc. 300 23,588
American International Group,
Inc. 600 57,975
Berkshire Hathaway Class (B)* 21 49,350
----------
130,913
----------
NATURAL GAS -- 0.2%
Marine Drilling Corp.* 900 6,919
----------
OFFICE & BUSINESS EQUIPMENT -- 10.9%
Compaq Computer Corp. 800 33,550
Dell Computer Corp.* 800 58,550
International Business
Machines Corp. 400 73,900
Microsoft Corp.* 500 69,344
Oracle Corp.* 800 34,500
Sun Microsystems, Inc.* 800 68,500
----------
338,344
----------
OIL -- DOMESTIC -- 0.9%
Atlantic Richfield Co. 200 13,050
USX-Marathon Group 500 15,063
----------
28,113
----------
OIL -- INTERNATIONAL -- 4.4%
Amoco Corp. 200 12,075
British Petroleum, plc, ADR 200 17,925
Chevron Corp. 300 24,881
Exxon Corp. 400 29,250
Mobil Corp. 300 26,137
Royal Dutch Petroleum Co. 200 9,575
Texaco, Inc. 300 15,863
----------
135,706
----------
</TABLE>
See notes to financial statements.
97
<PAGE> 117
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
OIL -- SERVICES -- 2.8%
Baker Hughes, Inc. 600 $ 10,613
B.J. Services* 800 12,500
Diamond Offshore Drilling,
Inc. 600 14,212
Ensco International 500 5,343
Halliburton Co. 400 11,851
Schlumberger Ltd. 400 18,450
Weatherford International* 800 15,500
----------
88,469
----------
PAPER & PAPER PRODUCTS -- 1.8%
Bowater, Inc. 500 20,719
Champion International 300 12,150
Temple-Inland 400 23,725
----------
56,594
----------
RESTAURANTS -- 1.2%
McDonald's Corp. 500 38,313
----------
RETAIL -- 4.0%
Dayton-Hudson Corp. 300 16,275
GAP (The) Inc. 800 45,000
Home Depot, Inc. 500 30,594
Wal-Mart Stores 400 32,575
----------
124,444
----------
TELECOMMUNICATIONS -- 14.3%
Cisco Systems, Inc.* 600 55,688
Ericsson, L.M., ADS 800 19,150
General Instrument Corp.* 1,000 33,938
L-3 Communications Holdings,
Inc.* 500 23,281
Lucent Technologies, Inc. 400 44,000
MCI WorldCom* 1,200 86,100
Nokia Corp., ADS 500 60,219
Qwest Communications
International, Inc.* 1,000 50,000
Sprint, Corp."FON" 400 33,650
Sprint, Corp."PCS"* 200 4,625
Tellabs, Inc.* 500 34,281
----------
444,932
----------
TOBACCO -- 1.2%
Philip Morris Companies, Inc. 700 $ 37,450
----------
U.S AGENCY OBLIGATIONS -- 2.2%
Federal Home Loan Mortgage
Corp. 500 32,219
Federal National Mortgage
Assn. 500 37,000
----------
69,219
----------
UTILITIES -- TELEPHONE -- 1.2%
AT&T Corp. 500 37,620
----------
TOTAL COMMON STOCKS
(COST $1,822,151) $3,016,350
- ------------------------------------------------------------------
PRINCIPAL AMOUNT
---------
U. S. GOVERNMENT AGENCY -- 3.2%
- ------------------------------------------------------------------
Federal Home Loan Mortgage
Corp., 5.06%, due 01/08/99
(COST $99,902) $ 100,000 $ 99,902
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $1,922,053) -- 100.2% $3,116,252
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.2%) (6,901)
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $3,109,351
==================================================================
The aggregate cost of securities for Federal income tax purposes
at December 31, 1998 is $1,926,646.
The following amounts are based on costs for Federal income
tax purposes:
Aggregate gross unrealized appreciation $1,249,581
Aggregate gross unrealized depreciation (59,976)
----------
Net unrealized appreciation $1,189,605
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
ADR=American Depository Receipts.
ADS=American Depository Shares.
Percentages are based on net assets.
98
<PAGE> 118
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCK -- 98.9%
- --------------------------------------------------------------------
AEROSPACE/DEFENSE -- 2.3%
Northrop Grumman Corp. 2,500 $ 182,813
United Technologies Corp. 2,500 271,875
-----------
454,688
-----------
AUTOMOBILES -- 2.3%
Ford Motor Co. 4,000 234,750
General Motors Corp. 3,000 214,688
-----------
449,438
-----------
AUTOMOTIVE PARTS -- 1.4%
Dana Corp. 4,000 163,500
Eaton Corp. 1,500 106,031
-----------
269,531
-----------
BANKS/MAJOR -- 5.1%
Bank of New York, Inc. 6,000 241,500
BankAmerica Corp. 4,000 240,500
Bankers Trust New York Corp. 700 59,806
Chase Manhattan Corp. 3,500 238,219
Citigroup, Inc. 4,800 237,600
-----------
1,017,625
-----------
BANKS/REGIONAL -- 4.4%
BankBoston Corp. 3,800 147,962
First Union Corp. 3,000 182,438
Fleet Financial Group, Inc. 4,000 178,750
Mellon Bank Corp. 2,500 171,875
Wells Fargo & Co. 5,000 199,688
-----------
880,713
-----------
CHEMICALS -- 2.0%
duPont (E.I.) de Nemours & Co. 3,000 159,188
Olin Corp. 4,000 113,250
Rohm & Haas Co. 4,000 120,500
-----------
392,938
-----------
CONGLOMERATES -- 1.7%
Harsco Corp. 3,500 106,531
Textron, Inc. 3,000 227,813
-----------
334,344
-----------
CONTAINERS AND PACKAGING -- 0.6%
Temple-Inland, Inc. 2,000 118,625
-----------
COSMETICS -- 1.8%
Avon Products, Inc. 8,000 354,000
-----------
DRUGS -- 9.3%
American Home Products Corp. 6,000 337,875
Baxter International, Inc. 4,000 257,250
Bristol Myers Squibb Co. 2,500 334,531
Lilly (Eli) & Co. 1,000 88,875
Merck and Co., Inc. 1,000 147,688
Pharmacia & UpJohn, Inc. 4,000 226,500
Schering-Plough Corp. 1,000 55,250
SmithKline Beecham, plc, ADR 4,000 278,000
Warner Lambert Co. 1,500 112,781
-----------
1,838,750
-----------
ELECTRICAL EQUIPMENT -- 5.1%
Emerson Electric Co. 4,000 $ 250,250
General Electric Co. 7,500 765,469
-----------
1,015,719
-----------
ELECTRONICS -- 2.0%
AMP, Inc. 5,700 296,756
Thomas & Betts Corp. 2,500 108,281
-----------
405,037
-----------
FINANCIAL SERVICES -- 0.6%
Morgan (JP) Co. 1,200 126,075
-----------
FOREST PRODUCT -- 0.8%
Weyerhaeuser Co. 3,000 152,438
-----------
INSURANCE -- 3.8%
CIGNA Corp. 4,500 347,906
Lincoln National Corp. 3,000 245,438
St. Paul Cos., Inc. 4,500 156,375
-----------
749,719
-----------
MACHINERY -- 1.6%
Caterpillar Tractor Co. 3,500 161,000
Cooper Industries, Inc. 2,000 95,375
Timken Co. 3,500 66,063
-----------
322,438
-----------
METALS -- 1.3%
Carpenter Technology Corp. 3,000 101,813
USX-Marathon Group 5,000 150,625
-----------
252,438
-----------
MISCELLANEOUS -- 0.9%
Minnesota Mining & Manufacturing
Co. 1,500 106,688
Phelps-Dodge Corp. 1,500 76,312
-----------
183,000
-----------
NATURAL GAS -- 3.9%
Consolidated Natural Gas Co. 4,000 216,000
El Paso Energy Corp. 6,000 208,875
Enron Corp. 4,000 228,250
Questar Corp. 6,000 116,250
-----------
769,375
-----------
OFFICE & BUSINESS EQUIPMENT --4.2%
Pitney-Bowes, Inc. 5,500 363,344
Xerox Corp. 4,000 472,000
-----------
835,344
-----------
OIL -- DOMESTIC -- 1.3%
Amoco Corp. 2,000 120,750
Atlantic Richfield Co. 2,000 130,500
-----------
251,250
-----------
</TABLE>
See notes to financial statements.
99
<PAGE> 119
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
OIL -- INTERNATIONAL -- 4.7%
British Petroleum, plc, ADR 1,500 $ 134,438
Chevron Corp. 2,000 165,875
Exxon Corp. 3,000 219,375
Mobil Corp. 2,800 243,950
Royal Dutch Petroleum Co. 1,400 67,025
Texaco, Inc. 2,000 105,750
-----------
936,413
-----------
OIL -- SERVICES & DRILLING -- 4.1%
Baker Hughes Inc. 5,000 88,437
Diamond Offshore Drilling 4,000 94,750
Halliburton Co. 5,000 148,125
Schlumberger Limited 3,000 138,375
Williams (The) Companies, Inc. 11,000 343,063
-----------
812,750
-----------
PAPER & PAPER PRODUCTS -- 3.8%
Bowater, Inc. 3,000 124,312
Georgia-Pacific Group 3,500 204,969
International Paper Co. 4,000 179,250
Union Camp Corp. 3,500 236,250
-----------
744,781
-----------
PHOTOGRAPHY -- 0.2%
Eastman Kodak Co. 500 36,000
-----------
PUBLISHING -- 2.1%
McGraw-Hill Companies, Inc. 4,000 407,500
-----------
REAL ESTATE INVESTMENT
TRUSTS -- 3.5%
Avalon Bay Communities, Inc. 2,000 68,500
Boston Properties, Inc. 2,500 76,250
Crescent Real Estate Equities
Trust 4,000 92,000
Developers Diversified Realty
Corp. 5,000 88,750
Equity Office Properties Trust 4,000 96,000
Equity Residential Properties
Trust 2,000 80,875
Felcor Suite Hotels, Inc. 2,000 46,125
Health Care Property Investors,
Inc. 5,000 153,750
-----------
702,250
-----------
RETAIL SERVICES -- 0.6%
Sears Roebuck & Co. 3,000 127,500
-----------
SAVINGS & LOAN -- 1.2%
Washington Mutual, Inc. 6,000 229,125
-----------
SOAPS -- 0.9%
Colgate-Palmolive Co. 2,000 185,750
-----------
TELECOMMUNICATIONS
EQUIPMENT -- 0.4%
Harris Corp. 2,000 73,250
-----------
TOBACCO -- 1.7%
Fortune Brands, Inc. 3,500 110,688
Philip Morris Companies, Inc. 4,300 230,050
-----------
340,738
-----------
U.S. GOVERNMENT AGENCIES -- 1.1%
Federal National Mortgage Assn. 3,000 222,000
-----------
UTILITIES -- ELECTRIC -- 5.7%
American Electric Power, Inc. 3,000 $ 141,188
CMS Energy Corp. 4,000 193,750
Carolina Power & Light Co. 4,000 188,250
Duke Energy Corp. 4,000 256,250
Edison Int'l 6,000 167,250
FPL Group, Inc. 3,000 184,875
-----------
1,131,563
-----------
UTILITIES -- TELEPHONE -- 12.5%
AT&T Corp. 4,000 301,000
Ameritech Corp. 4,500 285,187
Bell Atlantic Corp. 4,500 255,656
Bellsouth Corp. 6,000 299,250
Frontier Corp. 6,000 204,000
GTE Corp. 4,000 269,750
SBC Communications, Inc. 5,500 294,938
Sprint Corp. "FON" 3,000 252,375
Sprint Corp. "PCS"* 1,500 34,688
US West Communications Group 4,000 258,495
-----------
2,455,339
-----------
TOTAL COMMON STOCKS
(COST $13,099,687) $19,578,444
- --------------------------------------------------------------------
PRINCIPAL
AMOUNT
--------
<S> <C> <C>
COMMERCIAL PAPER -- 0.6%
Enterprise Funding Corp., 5.42%,
due 01/19/99 (COST $124,661) $125,000 $ 124,661
- --------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 1.9%
Federal Home Loan Mortgage,
5.04%, due 01/20/99 $200,000 $ 199,468
Federal Home Loan Mortgage,
5.04%, due 02/12/99 100,000 99,412
Federal National Mortgage Assn.,
5.08%, due 01/14/99 75,000 74,863
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $373,743) $ 373,743
- --------------------------------------------------------------------
TOTAL INVESTMENTS -- 101.4%
(COST $13,598,091) $20,076,848
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.4%) (275,361)
- --------------------------------------------------------------------
NET ASSETS -- 100.0% $19,801,487
====================================================================
The aggregate cost of securities for Federal income tax purpose at
December 31, 1998 is $13,584,864.
The following amounts are based on costs for Federal income tax
purposes:
Aggregate gross unrealized appreciation $ 6,859,022
Aggregate gross unrealized depreciation (367,038)
-----------
Net unrealized appreciation $ 6,491,984
===========
</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.
100
<PAGE> 120
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 42.8%
- ------------------------------------------------------------------
Associates Corp. of North
America, 6.00%, due 06/15/00 $1,000,000 $ 1,007,967
Associates Corp. of North
America, 6.25%, due 11/01/08 1,000,000 1,031,812
BankBoston Corp., subordinated
note, 6.625%, due 02/01/04 1,000,000 1,014,836
Bear Stearns Co., Inc.,
7.25%, due 10/15/06 1,000,000 1,061,373
CSX Corp.,
7.25%, due 05/01/04 144A 1,000,000 1,065,721
Chase Manhattan Corp.,
subordinated note,
6.313%, due 08/01/28 1,000,000 966,780
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 1,068,754
Connecticut Light & Power Co.,
7.25%, due 07/01/99 747,000 747,134
Finova Capital Corp.,
6.25%, due 11/01/02 1,000,000 1,002,569
First Chicago Corp.,
9.00%, due 06/15/99 1,000,000 1,015,113
First Data Corp.,
6.75%, due 07/15/05 1,000,000 1,061,057
Ford Motor Credit Corp.,
6.50%, due 02/28/02 1,000,000 1,025,804
General Electric Capital Corp.,
6.66%, due 05/01/18 1,000,000 1,017,523
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,054,569
International Bank for
Reconstruction & Development,
5.625%, due 03/17/03 1,000,000 1,015,119
Laidlaw Inc.,
7.70%, due 08/15/02 1,000,000 1,036,001
Lockheed Martin Corp., 6.55%, due
05/15/99 1,000,000 1,003,580
MCI WorldCom, Inc., 6.125%, due
08/15/01 1,000,000 1,016,759
National Rural Utilities,
6.75%, due 09/01/01 1,000,000 1,035,557
Philip Morris Companies, Inc.,
7.50%, due 04/01/04 1,000,000 1,079,294
Potash Corp. of Saskatchewan,
Inc.,
7.125%, due 06/15/07 1,000,000 1,015,490
Potomac Edison Co.,
8.00%, due 06/01/06 1,000,000 1,025,155
Provident Bank,
6.375%, due 01/15/04 1,000,000 1,019,246
Tyco International Group, SA,
6.375%, due 06/15/05 1,000,000 1,021,885
USA Waste Services, Inc.,
7.00%, due 10/01/04 1,000,000 1,045,652
------------
TOTAL CORPORATE BONDS AND NOTES
(COST $24,666,823) $ 25,454,750
- ------------------------------------------------------------------
ASSET BACKED SECURITIES -- 3.9%
- ------------------------------------------------------------------
Chase Credit Card Master Trust,
5.98%, due 09/15/08 $1,000,000 $ 1,023,950
Comed Rate Reduction, Class A-7,
5.74%, due 12/25/08 1,000,000 1,005,750
Structured Asset Securities Corp.
Series 1996-CFL Class A-1c,
5.944%, due 02/25/28 267,297 266,992
------------
TOTAL ASSET BACKED SECURITIES
(COST $2,266,680) $ 2,296,692
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 10.0%
- ------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
5.09%, due 01/14/99 $ 350,000 $ 349,357
Federal Home Loan Mortgage Corp.,
5.14%, due 01/14/99 100,000 99,813
Federal Home Loan Mortgage Corp.,
5.04%, due 01/20/99 250,000 249,335
Federal Home Loan Mortgage Corp.,
5.00%, due 02/03/99 250,000 248,854
Federal Home Loan Mortgage Corp.,
5.03%, due 02/05/99 175,000 174,144
Federal Home Loan Mortgage Corp.,
5.00%, due 02/10/99 150,000 149,167
Federal Home Loan Mortgage Corp.,
4.99%, due 02/17/99 100,000 99,349
Federal Home Loan Mortgage Corp.,
5.04%, due 02/12/99 200,000 198,824
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.500%, due 02/15/21 2,000,000 2,035,934
Federal National Mortgage Assn.,
5.05%, due 01/14/99 300,000 299,453
Federal National Mortgage Assn.,
5.05%, due 02/05/99 100,000 99,512
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.000%, due 01/25/03 1,000,000 1,008,416
Student Loan Marketing Assn.,
5.78%, due 10/25/10 1,000,000 963,150
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $5,936,398) $ 5,975,308
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 38.9%
- ------------------------------------------------------------------
U.S. Treasury Note,
6.875%, due 07/31/99 $2,000,000 $ 2,025,000
U.S. Treasury Note,
6.375%, due 05/15/00 2,000,000 2,045,000
U.S. Treasury Note,
6.000%, due 08/15/00 3,000,000 3,061,875
U.S. Treasury Note,
6.625%, due 07/31/01 4,000,000 4,190,000
U.S. Treasury Note,
6.500%, due 05/31/02 5,000,000 5,279,690
U.S. Treasury Note,
5.750%, due 11/30/02 2,000,000 2,073,750
U.S. Treasury Note,
7.500%, due 02/15/05 1,000,000 1,144,688
U.S. Treasury Note,
6.500%, due 10/15/06 3,000,000 3,330,000
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $22,713,992) $ 23,150,003
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 0.9%
- ------------------------------------------------------------------
American Express Credit Corp.,
4.80%, due 02/01/99 $ 150,000 $ 149,380
Enterprise Funding Corp.,
5.42%, due 01/19/99 400,000 398,916
------------
TOTAL COMMERCIAL PAPER
(COST $548,296) $ 548,296
- ------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATION -- 1.9%
- ------------------------------------------------------------------
British Columbia, Province of,
7.25%, due 09/01/36
(COST $992,703) $1,000,000 $ 1,152,420
- ------------------------------------------------------------------
</TABLE>
101
<PAGE> 121
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1998
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2)
- ---------------------------------------------------------------
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(COST $57,124,892) -- 98.4% $ 58,577,469
OTHER ASSETS LESS LIABILITIES -- 1.6% 953,984
------------
NET ASSETS -- 100.0% $ 59,531,453
==================================================================
The aggregate cost of securities for Federal income tax purpose at
December 31, 1998 is $57,155,383.
The following amounts are based on costs for Federal income
tax
purposes:
Aggregate gross unrealized appreciation $ 1,515,095
Aggregate gross unrealized depreciation (93,009)
------------
Net unrealized appreciation $ 1,422,086
============
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
102
<PAGE> 122
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 33.6%
- ------------------------------------------------------------------
Aetna Services Inc.,
7.625%, due 08/15/26 $ 1,000,000 $ 1,010,481
Associate Corp. N.A.
6.25%, due 11/01/08 1,000,000 1,031,812
Boeing Co.,
8.625%, due 11/15/31 1,000,000 1,278,211
Capita Equipment Receivable Trust
Series 1997-1, Class C,
6.48%, due 10/15/06 1,000,000 1,001,050
Columbia/HCA Healthcare Corp.,
7.69%, due 06/15/25 1,000,000 926,820
Commonwealth Edison Co.,
7.00%, due 07/01/05 1,000,000 1,068,754
Crown Cork and Seal Co., Inc.,
7.375%, due 12/15/26 1,000,000 988,162
Discover Card Master Trust,
6.200%, due 05/16/06 1,000,000 1,033,041
Enersis S.A.,
7.40%, due 12/01/16 1,000,000 829,682
Federal Express Corp., Series
97-A,
7.50%, due 01/15/18 1,968,964 2,097,774
Fifth Third Cap Trust I, Series
A,
8.136%, due 03/15/27 2,000,000 2,256,012
GTE South Inc., Series D,
7.50%, due 03/15/26 1,000,000 1,077,326
General Electric Capital Corp.,
8.30%, due 09/20/09 2,000,000 2,405,022
General Motors Corp.,
7.00%, due 06/15/03 1,000,000 1,055,054
Hydro-Quebec,
8.50%, due 12/01/29 1,000,000 1,276,470
James River Corp.,
7.75%, due 11/15/23 1,000,000 1,089,921
Laidlaw Inc.,
7.875%, due 04/15/05 1,000,000 1,050,375
Legrand SA,
8.50%, due 02/15/25 1,000,000 1,186,798
Lockheed Martin Corp.,
7.65%, due 05/01/16 1,000,000 1,120,732
Lucent Technologies Inc.,
5.50%, due 11/15/08 2,000,000 2,021,472
MBIA Inc.,
7.15%, due 07/15/27 1,000,000 1,063,610
MCI WorldCom, Inc.,
6.950%, due 08/15/28 1,000,000 1,075,260
Merck & Co. Inc.,
5.95%, due 12/01/28 1,000,000 1,003,494
Merrill Lynch & Co. Inc.,
6.375%, 10/15/08 1,000,000 1,037,135
National City Bank,
7.25%, due 10/21/11 1,000,000 1,090,057
Norfolk Southern Corp.,
7.80%, due 05/15/27 1,000,000 1,165,950
Philip Morris Companies Inc.,
7.25%, due 09/15/01 1,000,000 1,041,222
Seagram (J.E.) & Sons Inc.,
9.65%, due 08/15/18 1,000,000 1,338,047
Swiss Bank Corp.,
7.75%, due 09/01/26 2,000,000 2,245,302
Texaco Capital, Inc.,
9.75%, due 03/15/20 1,000,000 1,386,380
Tyco Int'l Group SA,
7.00%, due 06/15/28 $ 2,000,000 $ 2,063,464
USA Waste Services Inc.,
7.00%, due 10/01/04 1,000,000 1,045,652
------------
TOTAL CORPORATE BONDS AND NOTES
(COST $38,717,740) $ 41,360,542
- ------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.6%
- ------------------------------------------------------------------
Comed Rate Reduction,
5.74%, due 12/25/08 $ 1,000,000 $ 1,005,750
Standard Credit Card Master
Trust, Series 94-2A, Class A,
7.25%, due 04/07/06 2,000,000 2,175,028
------------
TOTAL ASSET BACKED SECURITIES
(COST $3,108,568) $ 3,180,778
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.4%
- ------------------------------------------------------------------
Federal Home Loan Discount,
5.03%, due 01/08/99 $ 200,000 $ 199,804
Federal Home Loan Mortgage,
6.85%, due 01/15/22 1,000,000 1,017,597
Federal Home Loan Mortgage,
5.06%, due 01/08/99 100,000 99,902
Federal Home Loan Mortgage,
5.14%, due 01/14/99 450,000 449,165
Federal Home Loan Mortgage,
5.08%, due 01/20/99 300,000 299,196
Federal Home Loan Mortgage,
4.95%, due 01/29/99 100,000 99,615
Federal Home Loan Mortgage,
4.99%, due 02/22/99 850,000 843,873
Federal Home Loan Mortgage,
4.91%, due 03/12/99 300,000 297,136
Federal National Mortgage Assn.,
5.05%, due 01/14/99 200,000 199,635
Federal National Mortgage Assn.,
4.75%, due 01/25/99 50,000 49,842
Federal National Mortgage Assn.,
5.02%, due 02/05/99 300,000 298,536
Federal National Mortgage Assn.,
5.00%, due 02/10/99 100,000 99,444
Federal National Mortgage Assn.,
REMIC, Trust 92-198,
7.50%, due 09/25/22 2,000,000 2,103,596
Student Loan Marketing Assn.,
5.95%, due 07/25/09 1,000,000 980,710
Tennessee Valley Authority,
6.00%, due 03/15/13 1,000,000 1,053,096
Tennessee Valley Authority,
5.375%, due 11/13/08 1,000,000 1,003,790
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $8,739,046) $ 9,094,937
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 47.5%
- ------------------------------------------------------------------
U.S. Treasury Bond,
7.750%, due 12/31/99 $ 500,000 $ 515,000
U.S. Treasury Bond,
6.625%, due 05/15/07 3,000,000 3,374,064
U.S. Treasury Bond,
6.750%, due 08/15/26 9,500,000 11,385,161
U.S. Treasury Bond,
7.875%, due 02/15/21 8,000,000 10,542,504
</TABLE>
See notes to financial statements.
103
<PAGE> 123
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
U.S. Treasury Bond,
6.625%, due 02/15/27 $23,000,000 $ 27,204,699
U.S. Treasury Inflation Index
Bond,
3.625%, due 04/15/28 1,000,000 974,375
U.S. Treasury Strips,
0.000%, due 05/15/18 12,900,000 4,402,627
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $55,300,786) $ 58,398,430
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 6.3%
- ------------------------------------------------------------------
American Express Credit Corp.,
5.20%, due 01/04/99 $ 375,000 $ 374,838
American Express Credit Corp.,
5.30%, due 01/15/99 775,000 773,403
American Express Credit Corp.,
4.80%, due 02/01/99 100,000 99,587
Edison Funding,
5.24%, due 02/12/99 150,000 149,083
Enterprise Funding Corp.,
5.42%, due 01/19/99 200,000 199,458
Ford Motor Credit Corp.,
5.3%, due 01/07/99 3,800,000 3,796,643
Wells Fargo & Co.,
5.38%, due 01/29/99 2,325,000 2,315,271
------------
TOTAL COMMERCIAL PAPER
(COST $7,708,283) $ 7,708,283
- ------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATION -- 0.9%
- ------------------------------------------------------------------
British Columbia, Province of,
7.25%, due 09/01/36
(COST $992,703) $ 1,000,000 $ 1,152,420
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $114,567,126) -- 98.3% $120,895,390
OTHER ASSETS LESS LIABILITIES -- 1.7% 2,061,400
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $122,956,790
==================================================================
The aggregate cost of securities for Federal income tax purposes
at December 31, 1998 is $114,597,618.
The following amounts are based on costs for
Federal income tax purposes:
Aggregate gross unrealized appreciation $ 6,668,337
Aggregate gross unrealized depreciation (370,565)
------------
Net unrealized appreciation $ 6,297,772
============
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
+ Floating rate security. Rate is as of December 31, 1998.
104
<PAGE> 124
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 79.2%
- ------------------------------------------------------------------
AIR TRANSPORTATION -- 2.6%
AMR Corp.* 500 $ 29,688
Delta Airlines Inc. 600 31,200
UAL Corp.* 400 23,875
----------
84,763
----------
AUTOMOBILES -- 0.9%
Ford Motor Co. 500 29,344
----------
BANKS/MAJOR -- 2.4%
BankAmerica Corp. 200 12,025
Chase Manhattan Corp. 500 34,031
Citigroup Inc. 700 34,650
----------
80,706
----------
BANKS/REGIONAL -- 2.6%
BankBoston Corp. 500 19,469
First Union Corp. 400 24,325
Fleet Financial Group, Inc. 500 22,344
Mellon Bank Corp. 300 20,625
----------
86,763
----------
BEVERAGES/NON ALCOHOLIC -- 0.4%
Coca-Cola Co. 200 13,375
----------
BIO TECHNOLOGIES -- 1.0%
BioGen* 400 33,200
----------
CABLE TELEVISION -- 3.6%
Cablevision* 500 25,094
Comcast Corp., Class (A) 700 41,081
Tele-Communications, Inc. Series
A 700 38,719
----------
104,894
----------
CHEMICALS -- 0.8%
duPont (E.I.) de Nemours & Co. 500 26,531
----------
DRUGS -- 7.4%
American Home Products Corp. 500 28,156
Bristol Myers Squibb Co. 300 40,144
Lilly (Eli) & Co. 200 17,775
Pfizer Inc. 400 50,175
Schering-Plough Corp. 600 33,150
SmithKline Beecham plc, ADR 400 27,800
Warner Lambert Co. 600 45,113
----------
242,313
----------
ELECTRICAL EQUIPMENT -- 3.4%
Emerson Electric Co. 500 31,281
General Electric Co. 800 81,650
----------
112,931
----------
ELECTRONICS -- 4.9%
Applied Materials, Inc.* 700 29,881
Hewlett-Packard Co. 400 27,325
Intel Corp. 500 59,282
Texas Instruments, Inc. 500 42,781
----------
159,269
----------
ENTERTAINMENT -- 3.0%
Cumulus Media Inc.* 500 $ 8,313
Disney (Walt) Co. 500 15,000
Infinity Broadcasting Co.* 500 13,687
Time Warner, Inc. 1,000 62,063
----------
99,063
----------
FINANCIAL SERVICES -- 1.7%
American Express Co. 200 20,450
Associates First Capital Corp. 600 25,425
Morgan (JP) Co. 100 10,506
----------
56,381
----------
HOSPITAL SUPPLIES -- 1.3%
Johnson & Johnson 500 41,938
----------
HOUSEHOLD PRODUCTS -- 0.6%
Procter & Gamble 200 18,263
----------
INSURANCE -- 3.3%
American International Group,
Inc. 600 57,975
Berkshire Hathaway Class (B)* 21 49,350
----------
107,325
----------
METAL -- 0.5%
USX-Marathon Group 500 15,063
----------
OFFICE & BUSINESS EQUIPMENT -- 9.5%
Compaq Computer Corp.* 700 29,356
Dell Computer Corp.* 800 58,550
International Business Machines
Corp. 300 55,425
Microsoft Corp.* 500 69,344
Oracle Corp.* 700 30,188
Sun Microsystems, Inc.* 800 68,500
----------
311,363
----------
OIL -- DOMESTIC -- 0.4%
Atlantic Richfield Co. 200 13,050
----------
OIL -- INTERNATIONAL -- 3.9%
Amoco Corp. 200 12,075
British Petroleum, plc, ADR 200 17,925
Chevron Corp. 200 16,587
Exxon Corp. 400 29,250
Mobil Corp. 300 26,137
Royal Dutch Petroleum Co. 200 9,575
Texaco, Inc. 300 15,863
----------
127,412
----------
OIL -- SERVICES -- 2.5%
Baker Hughes, Inc. 500 8,844
B.J. Services* 700 10,937
Diamond Offshore Drilling Inc. 500 11,844
Ensco International Inc. 500 5,344
Halliburton Co. 300 8,887
Marine Drilling Co. Inc.* 800 6,150
Schlumberger Limited 400 18,450
Weatherford International* 600 11,625
----------
82,081
----------
PAPER & PAPER PRODUCTS -- 1.4%
Bowater 500 $ 20,719
Champion International 200 8,100
Temple-Inland Inc. 300 17,794
----------
46,613
----------
</TABLE>
See notes to financial statements.
105
<PAGE> 125
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION SHARES (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
RESTAURANT -- 1.2%
McDonald's Corp. 500 $ 38,313
----------
RETAIL -- 2.9%
Gap (The) Inc. 700 39,375
Home Depot, Inc. 500 30,594
Wal-Mart Stores 300 24,431
----------
94,400
----------
TELECOMMUNICATIONS -- 14.3%
AT&T 500 37,625
Cisco Systems, Inc.* 500 46,406
Ericsson, L.M., ADS 700 16,756
General Instrument* 1000 33,938
L-3 Communications Holdings Inc.* 500 23,281
Lucent Technologies Inc. 400 44,000
MCI WorldCom, Inc.* 1200 86,100
Nokia Corp., ADS 500 60,219
Qwest Communications Int'l. Inc. 1000 50,000
Sprint Corp. "FON" 400 33,650
Sprint Corp. "PCS"* 200 4,625
Tellabs, Inc.* 500 34,281
----------
470,881
----------
TOBACCO -- 0.8%
Philip Morris Cos., Inc. 500 26,750
----------
U.S. GOVERNMENT AGENCIES -- 2.3%
Federal Home Loan Mortgage Corp. 600 38,659
Federal National Mortgage Assn. 500 37,000
----------
75,659
----------
TOTAL COMMON STOCKS
(COST $1,527,676) $2,598,644
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 16.6%
- ------------------------------------------------------------------
U.S. Treasury Note, 7.50%, due
05/15/02 (COST $511,549) $500,000 $ 542,812
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 3.0%
- ------------------------------------------------------------------
Enterprise Funding Corp., 5.42%,
due 01/19/1999 (COST $99,729) $100,000 $ 99,729
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,138,954) -- 98.8% $3,241,185
OTHER ASSETS LESS LIABILITIES -- 1.2% 38,435
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $3,279,620
==================================================================
The aggregate cost of securities for Federal income tax purposes
at December 31, 1998 is $2,143,690.
The following amounts are based on costs for Federal income
tax purposes:
Aggregate gross unrealized appreciation $1,147,641
Aggregate gross unrealized depreciation (50,146)
----------
Net unrealized appreciation $1,097,495
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
ADR = American Depository Receipts.
ADS = American Depository Shares.
Percentages are based on net assets.
106
<PAGE> 126
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 20.8%
- ------------------------------------------------------------------
U.S. Treasury Note,
6.000%, due 08/15/99 $1,000,000 $ 1,008,125
U.S. Treasury Note,
5.875%, due 11/15/99 1,000,000 1,010,313
U.S. Treasury Note,
7.750%, due 11/30/99 1,000,000 1,027,188
U.S. Treasury Note,
6.250%, due 01/31/02 4,000,000 4,176,252
U.S. Treasury Note,
5.625%, due 12/31/02 1,000,000 1,032,813
U.S. Treasury Note,
5.500%, due 01/31/03 3,000,000 3,087,189
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $11,160,885) $11,341,880
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 77.0%
- ------------------------------------------------------------------
Attransco, Inc.,
6.120%, due 04/01/08 $2,000,000 $ 2,074,000
Federal Home Loan Bank.,
5.50%, due 01/21/03 2,000,000 2,020,702
Federal Home Loan Discount.,
5.030%, due 01/08/99 950,000 949,071
Federal Home Loan Mortgage Corp.,
4.910%, due 01/08/99 2,550,000 2,547,565
Federal Home Loan Mortgage Corp.,
5.060%, due 01/08/99 350,000 349,656
Federal Home Loan Mortgage Corp.,
5.100%, due 01/13/99 100,000 99,830
Federal Home Loan Mortgage Corp.,
5.070%, due 01/14/99 125,000 124,771
Federal Home Loan Mortgage Corp.,
5.140%, due 01/14/99 550,000 548,979
Federal Home Loan Mortgage Corp.,
4.930%, due 01/15/99 300,000 299,425
Federal Home Loan Mortgage Corp.,
5.080%, due 01/15/99 150,000 149,704
Federal Home Loan Mortgage Corp.,
4.880%, due 01/19/99 400,000 399,024
Federal Home Loan Mortgage Corp.,
5.040%, due 01/20/99 500,000 498,670
Federal Home Loan Mortgage Corp.,
5.050%, due 01/20/99 1,200,000 1,196,802
Federal Home Loan Mortgage Corp.,
5.080%, due 01/20/99 1,450,000 1,446,112
Federal Home Loan Mortgage Corp.,
5.070%, due 01/29/99 2,200,000 2,191,325
Federal Home Loan Mortgage Corp.,
5.100%, due 02/05/99 525,000 522,397
Federal Home Loan Mortgage Corp.,
5.000%, due 02/10/99 500,000 497,222
Federal Home Loan Mortgage Corp.,
5.020%, due 02/10/99 475,000 472,351
Federal Home Loan Mortgage Corp.,
5.040%, due 02/12/99 300,000 298,236
Federal Home Loan Mortgage Corp.,
4.990%, due 02/17/99 1,950,000 1,937,296
Federal Home Loan Mortgage Corp.,
4.990%, due 02/22/99 250,000 248,198
Federal Home Loan Mortgage Corp.,
6.500%, due 11/15/21 $1,500,000 $ 1,534,665
Federal Home Loan Mortgage Corp.,
6.500%, due 03/01/26 1,000,000 1,011,428
Federal National Mortgage Assn.,
5.050%, due 01/14/99 175,000 174,681
Federal National Mortgage Assn.,
4.880%, due 01/20/99 1,650,000 1,645,591
Federal National Mortgage Assn.,
4.720%, due 01/21/99 2,900,000 2,892,396
Federal National Mortgage Assn.,
5.000%, due 02/10/99 700,000 696,111
Federal National Mortgage Assn.,
7.000%, due 01/25/03 200,000 201,683
Federal National Mortgage Assn.,
5.750%, due 08/25/18 500,000 499,810
Federal National Mortgage Assn.
REMIC Trust,
7.000%, due 01/25/03 85,000 85,715
Federal National Mortgage Assn.
REMIC Trust,
6.500%, due 10/25/03 1,300,000 1,359,547
Government National Mortgage
Assn.,
7.50%, due 05/15/24 682,058 703,160
Government National Mortgage
Assn.,
7.50%, due 10/15/24 185,589 191,331
Government National Mortgage
Assn.,
7.00%, due 09/20/28 1,823,053 1,852,109
Private Export Funding Co.,
7.01%, due 04/30/04 2,000,000 2,162,368
Private Export Funding Co.,
5.25%, due 05/15/05 2,500,000 2,503,098
Tennessee Valley Authority Series
A,
6.375%, due 06/15/05 500,000 530,949
Tennessee Valley Authority Series
A,
5.375%, due 11/13/08 2,000,000 2,007,580
Tennessee Valley Authority Series
A,
6.000%, due 03/15/13 1,000,000 1,053,096
U.S. Government -- HUD,
6.23%, due 08/01/02 2,000,000 2,068,476
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $41,458,153) $42,045,130
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $52,619,038) -- 97.8% $53,387,010
OTHER ASSETS LESS LIABILITIES -- 2.2% 1,227,803
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $54,614,813
==================================================================
The aggregate cost of securities for Federal income tax purposes
on December 31, 1998 is $52,619,038.
The following amounts are based on costs for Federal income
tax purposes:
Aggregate gross unrealized appreciation $ 793,906
Aggregate gross unrealized depreciation (25,934)
-----------
Net unrealized appreciation $ 767,972
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
107
<PAGE> 127
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
COMMERCIAL PAPER -- 91.0%
- ------------------------------------------------------------------
American Crystal Sugar Co.,
5.60%, due 01/29/99 $ 3,000,000 $ 2,986,933
American Express Credit Corp.,
5.05%, due 01/04/99 300,000 299,874
American Express Credit Corp.,
5.30%, due 01/15/99 7,650,000 7,634,233
Avco Financial Services Canada
Ltd.,
5.30%, due 01/19/99 1,000,000 997,350
Avco Financial Services Canada
Ltd.,
5.25%, due 01/19/99 3,000,000 2,992,125
Avco Financial Services Canada
Ltd.,
5.40%, due 02/08/99 5,000,000 4,971,500
Avco Financial Services Canada
Ltd.,
5.35%, due 03/15/99 8,000,000 7,913,211
Bank of New York,
5.26%, due 02/05/99 2,700,000 2,686,193
Bank of Nova Scotia,
5.40%, due 1/19/99 4,100,000 4,088,930
Bank One Funding Corp.,
5.42%, due 01/15/99 10,000,000 9,978,922
Bank One, Cleveland, N.A.,
5.60%, due 01/07/99 (a) 3,900,000 3,900,000
Barclays US Funding Corp.,
5.10%, due 1/19/99 2,300,000 2,294,135
Capital One Funding Corp.,
5.34%, due 01/07/99 (a) 3,064,000 3,064,000
C.I.T. Group Holdings, Inc.,
5.24%, due 01/28/99 10,000,000 9,960,700
C.I.T. Group Holdings, Inc.,
5.33%, due 01/26/99 2,700,000 2,690,006
C.I.T. Group Holdings, Inc.,
5.33%, due 01/28/99 1,000,000 996,003
Ciesco, L.P.,
5.08%, due 01/21/99 1,000,000 997,178
Ciesco, L.P.,
5.34%, due 01/25/99 6,300,000 6,277,572
Ciesco, L.P.,
5.17%, due 01/06/99 10,000,000 9,992,819
Coca Cola Enterprises Inc.,
5.22%, due 02/02/99 1,000,000 995,360
Coca Cola Enterprises Inc.,
5.18%, due 02/16/99 8,500,000 8,443,739
Coca Cola Enterprises Inc.,
5.50%, due 01/28/99 650,000 647,319
Commerical Credit Corp.,
5.31%, due 01/13/99 12,700,000 12,677,521
Conagra, Inc.,
5.80%, due 01/08/99 1,900,000 1,897,857
Edison Funding Corp.,
5.32%, due 01/29/99 6,391,000 6,364,555
Edison Funding Corp.,
5.38%, due 01/08/99 3,356,000 3,352,489
Edison Funding Corp.,
5.30%, due 02/08/99 $ 5,000,000 $ 4,972,028
Edison Funding Corp.,
5.40%, due 01/29/99 2,000,000 1,991,600
Enterprise Funding Corp.,
5.35%, due 01/22/99 4,500,000 4,485,956
Enterprise Funding Corp.,
5.35%, due 01/15/99 2,000,000 1,995,839
Enterprise Funding Corp.,
5.45%, due 01/15/99 7,000,000 6,985,164
Ford Motor Credit Canada,
5.34%, due 01/15/99 7,000,000 6,985,463
Ford Motor Credit Corp.,
5.30%, due 01/07/99 850,000 849,249
General Electric Capital Corp.,
5.33%, due 01/22/99 1,000,000 996,891
General Electric Capital Corp.,
5.49%, due 01/27/99 1,500,000 1,494,053
General Motors Acceptance Corp.,
5.30%, due 01/12/99 3,000,000 2,995,142
General Motors Acceptance Corp.,
5.04%, due 01/04/99 600,000 599,748
General Motors Acceptance Corp.,
5.29%, due 01/21/99 2,050,000 2,043,975
General Motors Acceptance Corp.,
5.31%, due 01/20/99 1,500,000 1,495,796
General Motors Acceptance Corp.,
5.33%, due 01/22/99 9,500,000 9,470,463
Goldman Sachs Group, L.P.,
5.343%, due 01/15/99 5,000,000 5,000,000
Goldman Sachs Group, L.P.,
5.40%, due 01/05/99 2,650,000 2,648,410
Heller Financial, Inc.,
5.52%, due 01/21/99 3,600,000 3,588,960
Household International Inc.,
5.35%, due 01/14/99 7,000,000 6,986,476
Household International Inc.,
5.30%, due 01/22/99 8,350,000 8,324,185
Houston Industries Inc.,
6.05%, due 01/06/99 800,000 799,328
Lehman Brothers Holdings Inc.,
5.60%, due 01/29/99 2,600,000 2,588,676
Lehman Brothers Holdings Inc.,
5.78%, due 12/15/99 7,000,000 7,000,000
Mellon Bank Corp.,
5.50%, due 01/06/99 5,800,000 5,800,000
Mellon Bank Corp.,
5.04%, due 03/24/99 12,000,000 11,862,240
Merrill Lynch and Co., Inc.,
5.35%, due 01/20/99 15,300,000 15,256,799
Merrill Lynch and Co., Inc.,
5.27%, due 01/27/99 1,600,000 1,593,910
</TABLE>
See notes to financial statements.
108
<PAGE> 128
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1998
VALUE VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE
2) DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Paccar Financial Group,
5.40%, due 01/04/99 $ 1,400,000 $ 1,399,370
Prudential Funding Corp.,
5.34%, due 01/15/99 10,000,000 9,979,233
Republic National Bank of New
York,
5.20%, due 01/15/99 10,000,000 9,979,778
Republic National Bank of New
York,
5.20%, due 03/01/99 900,000 892,596
Riverwood Funding Corp.,
5.33%, due 01/11/99 3,650,000 3,644,596
Sanwa Business Credit Corp.,
5.45%, due 01/21/99 2,500,000 2,492,431
Sanwa Business Credit Corp.,
5.45%, due 01/22/99 10,625,000 10,591,221
Sears Roebuck Acceptance Corp.,
5.36%, due 01/21/99 3,000,000 2,991,067
Sears Roebuck Acceptance Corp.,
5.33%, due 01/15/99 6,000,000 5,987,563
Sears Roebuck Acceptance Corp.,
5.50%, due 01/07/99 6,700,000 6,693,858
SONY Corp.,
5.38%, due 01/20/99 2,500,000 2,492,901
Textron Financial Corp.,
6.10%, due 01/06/99 2,000,000 1,998,306
TransAmerica Corp.,
5.15%, due 01/15/99 5,000,000 4,989,986
TransAmerica Corp.,
5.37%, due 01/11/99 5,500,000 5,491,796
Union Bancal Corp.,
5.32%, due 01/15/99 5,500,000 5,488,621
Union Bancal Corp.,
5.27%, due 01/22/99 3,000,000 2,990,778
Xerox Credit Corp.,
5.25%, due 01/12/99 $ 2,000,000 $ 1,996,792
------------
TOTAL COMMERCIAL PAPER
(COST $318,011,768) $318,011,768
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.4%
- ------------------------------------------------------------------
Federal Home Loan Bank,
5.00%, due 10/27/99 $ 8,000,000 $ 8,000,000
Federal Home Loan Mortgage Corp.,
5.03%, due 02/05/99 500,000 497,553
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $8,497,553) $ 8,497,553
- ------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 1.2%
- ------------------------------------------------------------------
Asset-Backed Sec. Inv. Trust,
5.278%, due 01/15/99, 144A
(COST $4,000,000) $ 4,000,000 $ 4,000,000
- ------------------------------------------------------------------
CERTIFICATE OF DEPOSITS -- 5.4%
- ------------------------------------------------------------------
Canadian Imperial Bank,
5.70%, due 06/14/99 $ 7,000,000 $ 6,998,355
National Westminster Bank plc,
5.70%, due 03/31/99 5,000,000 5,004,247
Toronto Dominion Bank,
5.70%, due 06/17/99 7,000,000 7,000,000
------------
TOTAL CERTIFICATE OF DEPOSITS
(COST $19,002,602) $ 19,002,602
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $349,511,923) -- 100.0% $349,511,923
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.0%) (90,563)
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $349,421,360
==================================================================
</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 10 basis points.
This instrument resets on a weekly basis. The rate shown was in effect as of
December 31, 1998.
Percentages are based on net assets.
109
<PAGE> 129
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
EQUITY GROWTH EQUITY INCOME TERM BOND BOND DIVERSIFIED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ --------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Securities, at value (Note 2)*................... $3,116,252 $20,076,848 $58,577,469 $120,895,390 $3,241,185
Cash............................................. 4,795 0 87,458 93,196 46,166
Dividends receivable............................. 1,578 31,253 0 0 1,126
Interest receivable.............................. 0 0 833,255 1,868,865 4,792
Receivable for fund shares sold.................. 7 57 92,792 192,060 157
Prepaid expense.................................. 3 1 4 7 0
---------- ----------- ----------- ------------ ----------
Total assets......................................... 3,122,635 20,108,159 59,590,978 123,049,518 3,293,426
---------- ----------- ----------- ------------ ----------
LIABILITIES
Bank overdraft................................... 0 231,645 0 0 0
Payable for fund shares redeemed................. 29 14,793 12,835 14,149 60
Payable for securities purchased................. 0 35,482 0 0 0
Accrued expenses:
Investment advisory fees.................... 1,264 8,239 25,085 51,293 1,535
Custodian fees.............................. 1,228 2,655 2,158 1,165 1,313
Accounting fees............................. 2,135 2,150 2,605 3,235 4,254
Professional fees........................... 8,325 9,275 10,807 12,721 6,222
Miscellaneous fees.......................... 303 2,433 6,035 10,165 422
---------- ----------- ----------- ------------ ----------
Total liabilities.................................... 13,284 306,672 59,525 92,728 13,806
---------- ----------- ----------- ------------ ----------
NET ASSETS........................................... $3,109,351 $19,801,487 $59,531,453 $122,956,790 $3,279,620
========== =========== =========== ============ ==========
Net assets consist of:
Capital stock -- $.01 par value.................. $ 814 $ 7,629 $ 52,546 $ 86,746 $ 1,647
Additional paid-in capital....................... 1,650,544 9,840,765 55,293,695 108,864,265 1,756,648
Undistributed net investment income (loss)....... 0 365,228 2,897,928 5,178,086 12,540
Undistributed/accumulated net realized gain
(loss) on investments.......................... 263,794 3,109,108 (165,293) 2,499,429 406,554
Net unrealized appreciation of investments....... 1,194,199 6,478,757 1,452,577 6,328,264 1,102,231
---------- ----------- ----------- ------------ ----------
NET ASSETS........................................... $3,109,351 $19,801,487 $59,531,453 $122,956,790 $3,279,620
========== =========== =========== ============ ==========
Shares of capital stock outstanding.................. 81,391 762,967 5,254,626 8,674,646 164,684
---------- ----------- ----------- ------------ ----------
Net asset value per share of outstanding capital
stock.............................................. $ 38.20 $ 25.95 $ 11.33 $ 14.17 $ 19.91
========== =========== =========== ============ ==========
*Investments at cost................................. $1,922,053 $13,598,091 $57,124,892 $114,567,126 $2,138,954
<CAPTION>
GOVERNMENT MONEY
SECURITIES MARKET
PORTFOLIO PORTFOLIO
---------- ---------
<S> <C> <C>
ASSETS
Securities, at value (Note 2)*................... $53,387,010 $349,511,923
Cash............................................. 901,523 851,637
Dividends receivable............................. 0 0
Interest receivable.............................. 491,547 967,229
Receivable for fund shares sold.................. 47,327 1,637,329
Prepaid expense.................................. 2 4
----------- ------------
Total assets......................................... 54,827,409 352,968,122
----------- ------------
LIABILITIES
Bank overdraft................................... 0 0
Payable for fund shares redeemed................. 173,507 3,370,948
Payable for securities purchased................. 0 0
Accrued expenses:
Investment advisory fees.................... 22,647 119,658
Custodian fees.............................. 259 4,115
Accounting fees............................. 5,278 7,308
Professional fees........................... 7,115 18,199
Miscellaneous fees.......................... 3,790 26,534
----------- ------------
Total liabilities.................................... 212,596 3,546,762
----------- ------------
NET ASSETS........................................... $54,614,813 $349,421,360
=========== ============
Net assets consist of:
Capital stock -- $.01 par value.................. $ 48,895 $ 3,494,214
Additional paid-in capital....................... 51,968,891 345,927,146
Undistributed net investment income (loss)....... 1,817,929 0
Undistributed/accumulated net realized gain
(loss) on investments.......................... 11,126 0
Net unrealized appreciation of investments....... 767,972 0
----------- ------------
NET ASSETS........................................... $54,614,813 $349,421,360
=========== ============
Shares of capital stock outstanding.................. 4,889,511 349,421,360
----------- ------------
Net asset value per share of outstanding capital
stock.............................................. $ 11.17 $ 1.00
=========== ============
*Investments at cost................................. $52,619,038 $349,511,923
</TABLE>
See notes to financial statements.
110
<PAGE> 130
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the year ended December 31, 1998
- --------------------------------------------------------------------------------
<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.............. $ 10,122 $ 37,915 $3,211,948 $ 5,718,150 $ 42,324 $2,040,390 $14,048,408
Dividends............. 28,253 486,698 0 0 24,773 0 0
---------- ----------- ---------- ----------- ---------- ---------- -----------
Total investment
income......... 38,375 524,613 3,211,948 5,718,150 67,097 2,040,390 14,048,408
---------- ----------- ---------- ----------- ---------- ---------- -----------
EXPENSES:
Investment advisory
fees (Note 3)....... 14,297 100,307 258,287 468,103 15,776 176,804 1,005,196
Custodian fees........ 6,304 8,078 6,178 6,670 6,700 4,130 10,956
Accounting fees (Note
3).................. 25,537 29,965 34,193 40,907 25,605 30,561 64,364
Professional fees..... 8,150 9,074 10,574 12,454 8,169 9,557 19,022
Directors fees........ 315 2,249 5,393 9,332 355 3,262 23,094
Miscellaneous fees.... 342 2,500 4,117 7,062 383 2,420 17,208
---------- ----------- ---------- ----------- ---------- ---------- -----------
Total expenses... 54,945 152,173 318,742 544,528 56,988 226,734 1,139,840
Expenses reduced
by a custodian
fee
arrangement.... (2,912) (2,799) (4,722) (4,464) (2,431) (4,273) (9,396)
---------- ----------- ---------- ----------- ---------- ---------- -----------
Net expenses..... 52,033 149,374 314,020 540,064 54,557 222,461 1,130,444
---------- ----------- ---------- ----------- ---------- ---------- -----------
Net investment income
(loss)................... (13,658) 375,239 2,897,928 5,178,086 12,540 1,817,929 12,917,964
---------- ----------- ---------- ----------- ---------- ---------- -----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS (NOTE
2):
Realized gain from
security
transactions
(excluding
short-term
securities):
Proceeds from
sales.......... 1,301,762 8,724,523 8,086,060 34,404,043 1,581,058 7,329,915 0
Less: Cost of
securities
sold........... 1,023,273 5,637,884 8,008,538 31,874,123 1,174,479 7,317,047 0
---------- ----------- ---------- ----------- ---------- ---------- -----------
Net realized gain on
investments.............. 278,489 3,086,639 77,522 2,529,920 406,579 12,868 0
Net increase (decrease) in
unrealized appreciation
of investments........... 392,152 (1,030,272) 678,142 895,785 234,702 449,812 0
---------- ----------- ---------- ----------- ---------- ---------- -----------
Net realized and unrealized
gain on investments...... 670,641 2,056,367 755,664 3,425,705 641,281 462,680 0
---------- ----------- ---------- ----------- ---------- ---------- -----------
Net increase in net assets
resulting from
operations............... $ 656,983 $ 2,431,606 $3,653,592 $ 8,603,791 $ 653,821 $2,280,609 $12,917,964
========== =========== ========== =========== ========== ========== ===========
</TABLE>
See notes to financial statements.
111
<PAGE> 131
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE TERM BOND
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO PORTFOLIO
----------------------- ------------------------- ---------------------------
1998 1997 1998 1997 1998 1997
---------- ---------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment income (loss)... $ (13,658) $ 8,852 $ 375,239 $ 444,144 $ 2,897,928 $ 2,478,951
Net realized gain (loss) on
investments (Note 2)......... 278,489 457,619 3,086,639 2,832,463 77,522 (142,541)
Net increase (decrease) in
unrealized appreciation of
investments.................. 392,152 208,784 (1,030,272) 2,149,816 678,142 806,052
---------- ---------- ----------- ----------- ------------ ------------
Net increase in net assets
resulting from operations........ 656,983 675,255 2,431,606 5,426,423 3,653,592 3,142,462
---------- ---------- ----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)........................... (119,498) (68,260) (632,565) (774,467) (2,478,951) (2,284,209)
Net realized gain from
investment transactions (Note
4)........................... (342,882) (133,214) (2,642,564) (1,471,218) 0 0
---------- ---------- ----------- ----------- ------------ ------------
Total dividends and
distributions to
shareholders............. (462,380) (201,474) (3,275,129) (2,245,685) (2,478,951) (2,284,209)
---------- ---------- ----------- ----------- ------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares....................... 95,975 184,444 796,187 321,172 27,469,322 11,465,629
Proceeds from dividends and
distributions reinvested..... 462,380 201,474 3,275,129 2,245,685 2,478,951 2,284,209
Net asset value of shares
redeemed..................... (442,713) (215,262) (4,147,192) (3,599,056) (15,808,455) (10,436,350)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net
assets resulting from share
transactions..................... 115,642 170,656 (75,876) (1,032,199) 14,139,818 3,313,488
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net
assets........................... 310,245 644,437 (919,399) 2,148,539 15,314,459 4,171,741
Net assets beginning of year....... 2,799,106 2,154,669 20,720,886 18,572,347 44,216,994 40,045,253
---------- ---------- ----------- ----------- ------------ ------------
Net assets end of year*............ $3,109,351 $2,799,106 $19,801,487 $20,720,886 $ 59,531,453 $ 44,216,994
========== ========== =========== =========== ============ ============
SHARES ISSUED AND REDEEMED:
Issued......................... 2,784 5,772 29,633 12,780 2,465,899 1,065,196
Issued in reinvestment of
dividends and
distributions................ 13,656 7,139 126,845 104,450 231,461 221,552
Redeemed....................... (12,625) (6,285) (158,014) (144,920) (1,417,637) (967,252)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in
shares outstanding....... 3,815 6,626 (1,536) (27,690) 1,279,723 319,496
========== ========== =========== =========== ============ ============
*Including undistributed net
investment income (loss) of: $ 0 $ 8,852 $ 365,228 $ 444,144 $ 2,897,928 $ 2,478,951
<CAPTION>
LONG TERM BOND PORTFOLIO
---------------------------
1998 1997
------------ ------------
<S> <C> <C>
FROM OPERATIONS:
Net Investment income (loss)... $ 5,178,086 $ 4,173,497
Net realized gain (loss) on
investments (Note 2)......... 2,529,920 545,629
Net increase (decrease) in
unrealized appreciation of
investments.................. 895,785 3,873,480
------------ ------------
Net increase in net assets
resulting from operations........ 8,603,791 8,592,606
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)........................... (4,173,497) (3,837,045)
Net realized gain from
investment transactions (Note
4)........................... (314,904) 0
------------ ------------
Total dividends and
distributions to
shareholders............. (4,488,401) (3,837,045)
------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares....................... 72,363,250 19,278,888
Proceeds from dividends and
distributions reinvested..... 4,488,401 3,837,045
Net asset value of shares
redeemed..................... (33,363,015) (14,617,547)
------------ ------------
Net increase (decrease) in net
assets resulting from share
transactions..................... 43,488,636 8,498,386
------------ ------------
Net increase (decrease) in net
assets........................... 47,604,026 13,253,947
Net assets beginning of year....... 75,352,764 62,098,817
------------ ------------
Net assets end of year*............ $122,956,790 $ 75,352,764
============ ============
SHARES ISSUED AND REDEEMED:
Issued......................... 5,224,600 1,516,701
Issued in reinvestment of
dividends and
distributions................ 344,731 327,953
Redeemed....................... (2,417,533) (1,158,388)
------------ ------------
Net increase (decrease) in
shares outstanding....... 3,151,798 686,266
============ ============
*Including undistributed net
investment income (loss) of: $ 5,178,086 $ 4,173,497
</TABLE>
See notes to financial statements.
112
<PAGE> 132
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued) For the years ended December 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO MONEY MARKET PORTFOLIO
------------------------ -------------------------- -------------------------------
1998 1997 1998 1997 1998 1997
---------- ----------- ------------ ----------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment income............... $ 12,540 $ 49,159 $ 1,817,929 $ 1,106,347 $ 12,917,964 $ 7,935,910
Net realized gain on investments
(Note 2).......................... 406,579 659,723 12,868 7,774 0 0
Net increase in unrealized
appreciation of investments....... 234,702 56,061 449,812 301,555 0 0
---------- ----------- ------------ ----------- --------------- -------------
Net increase in net assets resulting
from operations....................... 653,821 764,943 2,280,609 1,415,676 12,917,964 7,935,910
---------- ----------- ------------ ----------- --------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note 4)...... (233,109) (67,363) (1,106,347) (695,233) (12,917,964) (7,935,910)
Net realized gain from investment
transactions (Note 4)............. (468,435) (196,377) 0 0 0 0
---------- ----------- ------------ ----------- --------------- -------------
Total dividends and
distributions to
shareholders................. (701,544) (263,740) (1,106,347) (695,233) (12,917,964) (7,935,910)
---------- ----------- ------------ ----------- --------------- -------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares............................ 200,875 188,701 41,828,223 11,987,035 1,317,395,361 919,623,131
Proceeds from dividends and
distributions reinvested.......... 701,544 263,740 1,106,347 695,233 12,917,964 7,935,910
Net asset value of shares
redeemed.......................... (804,465) (1,104,842) (14,559,912) (4,720,118) (1,139,178,202) (914,204,963)
---------- ----------- ------------ ----------- --------------- -------------
Net increase (decrease) in net assets
resulting from share transactions..... 97,954 (652,401) 28,374,658 7,962,150 191,135,123 13,354,078
---------- ----------- ------------ ----------- --------------- -------------
Net increase (decrease) in net assets... 50,231 (151,198) 29,548,920 8,682,593 191,135,123 13,354,078
Net assets beginning of year............ 3,229,389 3,380,587 25,065,893 16,383,300 158,286,237 144,932,159
---------- ----------- ------------ ----------- --------------- -------------
Net assets end of year*................. $3,279,620 $ 3,229,389 $ 54,614,813 $25,065,893 $ 349,421,360 $ 158,286,237
========== =========== ============ =========== =============== =============
SHARES ISSUED AND REDEEMED:
Issued.............................. 10,555 9,906 3,806,065 1,129,743 1,317,395,361 919,623,131
Issued in reinvestment of dividends
and distributions................. 39,703 15,793 104,570 68,160 12,917,964 7,935,910
Redeemed............................ (42,265) (56,930) (1,323,593) (444,602) (1,139,178,202) (914,204,963)
---------- ----------- ------------ ----------- --------------- -------------
Net increase (decrease) in
shares outstanding........... 7,993 (31,231) 2,587,042 753,301 191,135,123 13,354,078
========== =========== ============ =========== =============== =============
*Including undistributed net investment
income of: $ 12,540 $ 49,159 $ 1,817,929 $ 1,106,347 $ 0 $ 0
</TABLE>
See notes to financial statements.
113
<PAGE> 133
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, 1998, there were no such securities.
B. Federal Income Taxes:
Each portfolio of the Fund is a separate entity for Federal income tax
purposes and intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no Federal income tax provision
is required.
C. Security Transactions and Investment Income:
Security transactions are recorded as of the trade date.
Dividend income is recorded on the 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.
114
<PAGE> 134
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 MONY Life Insurance Company ("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,
1998, the fees incurred by the Fund were $2,038,770. 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 Directors' fees incurred for non-affiliated Directors of the Fund
for the year ended December 31, 1998 amounted to $44,000.
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, 1998, the Equity Growth Portfolio
reclassified $124,304 from undistributed realized gains to undistributed net
investment income. These differences are primarily due to a reclassification of
short term capital gains to ordinary income.
During the year ended December 31, 1998, the Equity Income Portfolio
increased undistributed realized gains by $10,010 and decreased undistributed
net investment income by $10,010. These differences are primarily due to return
of capital distributions received on investments.
115
<PAGE> 135
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL STOCK
A. Authorized Capital Stock:
The Fund has 2 billion authorized shares of capital stock with a par value
of $.01 per share. 1.65 billion shares are reserved for issuance and divided
into seven classes as follows: Equity Growth Portfolio (150 million shares);
Equity Income Portfolio (150 million shares); Intermediate Term Bond Portfolio
(150 million shares); Long Term Bond Portfolio (150 million shares); Diversified
Portfolio (150 million shares); Government Securities Portfolio (150 million
shares); and Money Market Portfolio (750 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 only 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, 1998, the following portfolio of the Fund has capital loss
carryforwards available to offset future capital gains, if any, for federal
income tax purposes:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EXPIRATION DATE
--------- ------ ---------------
<S> <C> <C>
Intermediate Term Bond...................................... $ 22,753 December 31, 2004
112,050 December 31, 2005
--------
$134,803
========
</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,
1998 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C> <C>
Equity Growth Portfolio................... Common Stock $ 1,007,126 $ 1,301,762
Equity Income Portfolio................... Common Stock 5,336,860 8,724,523
Intermediate Term Bond Portfolio.......... U.S. Government Obligations 19,902,270 4,260,400
Corporate Bonds 5,977,990 3,825,660
Long Term Bond Portfolio.................. U.S. Government Obligations 58,437,248 27,929,707
Corporate Bonds 12,181,672 6,474,336
Diversified Portfolio..................... Common Stock 998,860 1,581,058
Government Securities Portfolio........... U.S. Government Obligations 22,611,820 7,329,915
</TABLE>
116
<PAGE> 136
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 36.08 $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68 $ 20.25
---------- ---------- ---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income........... 1.50 0.11 0.96 0.39 0.36 0.33 0.29
Net gains (losses) on
investments (both realized and
unrealized)................... 6.88 8.42 4.30 5.90 0.09 1.59 (0.46)
---------- ---------- ---------- ---------- ----------- ----------- -----------
Total from investment
operations.................... 8.38 8.53 5.26 6.29 0.45 1.92 (0.17)
---------- ---------- ---------- ---------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)....................... (1.62) (0.96) 0.00 (0.39) (0.36) (0.33) (0.29)
Distributions (from realized
capital gains)................ (4.64) (1.86) 0.00 (1.34) (0.20) (0.57) (0.04)
Distributions (from additional
paid-in capital).............. 0.00 0.00 0.00 0.00 0.00 0.00 (0.03)
Distributions (in excess of
realized capital gain)........ 0.00 0.00 0.00 (0.04) 0.00 0.00 (0.04)
---------- ---------- ---------- ---------- ----------- ----------- -----------
Total distributions............. (6.26) (2.82) 0.00 (1.77) (0.56) (0.90) (0.40)
---------- ---------- ---------- ---------- ----------- ----------- -----------
Net asset value, end of period.... $ 38.20 $ 36.08 $ 30.37 $ 25.11 $ 20.59 $ 20.70 $ 19.68
========== ========== ========== ========== =========== =========== ===========
Total return.................... 25.46% 30.68% 20.95% 30.54% 2.15% 9.71% (0.84%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $3,109,351 $2,799,106 $2,154,669 $1,873,569 $ 1,556,536 $58,963,456 $39,979,012
Ratio of net investment income
(loss) to average net assets.... (0.48%) 0.34% 0.62% 1.54% 2.11% 1.79% 1.72%
Ratio of expenses to average net
assets.......................... 1.93% 1.33% 1.22% 1.28% 0.53% 0.50% 0.53%
Portfolio turnover rate........... 38.46% 45.90% 44.17% 38.17% 55.09% 59.15% 39.93%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------
1991 1990 1989
----------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 15.38 $ 15.90 $ 12.78
----------- ---------- ----------
Income from investment operations
Net investment income........... 0.25 0.27 0.28
Net gains (losses) on
investments (both realized and
unrealized)................... 5.08 (0.50) 3.66
----------- ---------- ----------
Total from investment
operations.................... 5.33 (0.23) 3.94
----------- ---------- ----------
Less distributions
Dividends (from net investment
income)....................... (0.25) (0.29) (0.27)
Distributions (from realized
capital gains)................ (0.17) 0.00 (0.55)
Distributions (from additional
paid-in capital).............. (0.04) 0.00 0.00
Distributions (in excess of
realized capital gain)........ 0.00 0.00 0.00
----------- ---------- ----------
Total distributions............. (0.46) (0.29) (0.82)
----------- ---------- ----------
Net asset value, end of period.... $ 20.25 $ 15.38 $ 15.90
=========== ========== ==========
Total return.................... 34.66% (1.45%) 30.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period......... $26,219,999 $7,163,679 $5,672,894
Ratio of net investment income
(loss) to average net assets.... 2.09% 2.42% 2.00%
Ratio of expenses to average net
assets.......................... 0.59% 0.77% 0.96%
Portfolio turnover rate........... 32.33% 31.21% 29.91%
</TABLE>
117
<PAGE> 137
MONY SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
EQUITY INCOME PORTFOLIO
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 27.10 $ 23.44 $ 19.61 $ 15.53 $ 16.43 $ 15.56
----------- ----------- ----------- ----------- ----------- ------------
Income from investment operations
Net investment income.............. 0.78 0.61 0.98 0.69 0.64 0.52
Net gains (losses) on investments
(both realized and unrealized)... 2.62 5.96 2.89 4.45 (0.51) 1.68
----------- ----------- ----------- ----------- ----------- ------------
Total from investment
operations..................... 3.40 6.57 3.87 5.14 0.13 2.20
----------- ----------- ----------- ----------- ----------- ------------
Less distributions
Dividends (from net investment
income).......................... (0.88) (1.00) (0.04) (0.65) (0.64) (0.52)
Distributions (from realized
capital gains)................... (3.67) (1.91) 0.00 (0.41) (0.39) (0.81)
----------- ----------- ----------- ----------- ----------- ------------
Total distributions.............. (4.55) (2.91) (0.04) (1.06) (1.03) (1.33)
----------- ----------- ----------- ----------- ----------- ------------
Net asset value, end of period....... $ 25.95 $ 27.10 $ 23.44 $ 19.61 $ 15.53 $ 16.43
=========== =========== =========== =========== =========== ============
Total return..................... 12.63% 31.26% 19.76% 33.12% 0.78% 14.14%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............ $19,801,487 $20,720,886 $18,572,347 $18,091,035 $16,204,925 $151,330,311
Ratio of net investment income to
average net assets................. 1.88% 2.20% 2.79% 3.54% 3.53% 3.22%
Ratio of expenses to average net
assets............................. 0.76% 0.59% 0.55% 0.56% 0.48% 0.46%
Portfolio turnover rate.............. 27.71% 29.32% 29.37% 26.80% 32.48% 28.48%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1992 1991 1990 1989
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 14.64 $ 12.70 $ 14.26 $ 12.67
------------ ------------ ----------- ----------
Income from investment operations
Net investment income.............. 0.59 0.64 0.54 0.64
Net gains (losses) on investments
(both realized and unrealized)... 0.92 1.94 (1.50) 2.20
------------ ------------ ----------- ----------
Total from investment
operations..................... 1.51 2.58 (0.96) 2.84
------------ ------------ ----------- ----------
Less distributions
Dividends (from net investment
income).......................... (0.59) (0.64) (0.60) (0.64)
Distributions (from realized
capital gains)................... 0.00* 0.00* 0.00 (0.61)
------------ ------------ ----------- ----------
Total distributions.............. (0.59) (0.64) (0.60) (1.25)
------------ ------------ ----------- ----------
Net asset value, end of period....... $ 15.56 $ 14.64 $ 12.70 $ 14.26
============ ============ =========== ==========
Total return..................... 10.31% 20.31% (6.73%) 22.42%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............ $121,540,392 $118,114,947 $99,878,151 $6,185,876
Ratio of net investment income to
average net assets................. 3.68% 4.46% 5.39% 4.66%
Ratio of expenses to average net
assets............................. 0.46% 0.49% 0.52% 0.88%
Portfolio turnover rate.............. 35.62% 25.84% 8.89% 19.55%
</TABLE>
- ---------------
* Less than $.01 per share.
118
<PAGE> 138
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,
---------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 11.12 $ 10.96 $ 10.57 $ 9.75 $ 10.51 $ 10.33
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.51 0.63 0.62 0.63 0.60 0.47
Net gains (losses) on investments
(both realized and unrealized)..... 0.28 0.16 (0.23) 0.82 (0.76) 0.34
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations... 0.79 0.79 0.39 1.45 (0.16) 0.81
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.58) (0.63) 0.00 (0.63) (0.60) (0.47)
Distributions (from realized capital
gains)............................. 0.00 0.00 0.00 0.00 0.00 (0.16)
Distributions (from additional
paid-in capital)................... 0.00 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions................ (0.58) (0.63) 0.00 (0.63) (0.60) (0.63)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period......... $ 11.33 $ 11.12 $ 10.96 $ 10.57 $ 9.75 $ 10.51
=========== =========== =========== =========== =========== ===========
Total return....................... 7.44% 7.70% 3.69% 14.82% (1.52%) 7.84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.............. $59,531,453 $44,216,994 $40,045,253 $37,519,833 $32,283,693 $31,326,168
Ratio of net investment income to
average net assets................... 5.61% 5.98% 5.88% 6.10% 5.66% 5.26%
Ratio of expenses to average net
assets............................... 0.62% 0.51% 0.48% 0.49% 0.52% 0.52%
Portfolio turnover rate................ 17.56% 79.25% 33.59% 32.07% 25.41% 50.61%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1992 1991 1990 1989
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $ 10.22 $ 9.69 $ 9.85 $ 9.63
----------- ----------- ----------- -----------
Income from investment operations
Net investment income................ 0.59 0.77 0.84 0.90
Net gains (losses) on investments
(both realized and unrealized)..... 0.11 0.71 (0.16) 0.22
----------- ----------- ----------- -----------
Total from investment operations... 0.70 1.48 0.68 1.12
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)............................ (0.59) (0.77) (0.84) (0.90)
Distributions (from realized capital
gains)............................. 0.00* 0.00 0.00 0.00
Distributions (from additional
paid-in capital)................... 0.00 (0.18) 0.00 0.00
----------- ----------- ----------- -----------
Total distributions................ (0.59) (0.95) (0.84) (0.90)
----------- ----------- ----------- -----------
Net asset value, end of period......... $ 10.33 $ 10.22 $ 9.69 $ 9.85
=========== =========== =========== ===========
Total return....................... 6.85% 15.27% 6.90% 11.63%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.............. $20,911,161 $22,005,519 $20,260,361 $20,419,237
Ratio of net investment income to
average net assets................... 6.24% 7.88% 8.52% 8.67%
Ratio of expenses to average net
assets............................... 0.53% 0.51% 0.54% 0.60%
Portfolio turnover rate................ 62.27% 55.03% 20.06% 30.99%
</TABLE>
- ---------------
* Less than $.01 per share.
119
<PAGE> 139
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,
----------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 13.64 $ 12.84 $ 12.88 $ 10.47 $ 12.05 $ 11.19
------------ ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.56 0.76 0.79 0.74 0.84 0.50
Net gains (losses) on investments
(both realized and unrealized).... 0.75 0.83 (0.83) 2.41 (1.58) 1.09
------------ ----------- ----------- ----------- ----------- -----------
Total from investment
operations...................... 1.31 1.59 (0.04) 3.15 (0.74) 1.59
------------ ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)........................... (0.72) (0.79) 0.00 (0.74) (0.84) (0.50)
Distributions (from realized capital
gains)............................ (0.06) 0.00 0.00 0.00 0.00 (0.23)
Distributions (from additional
paid-in capital).................. 0.00 0.00 0.00 0.00 0.00 0.00
------------ ----------- ----------- ----------- ----------- -----------
Total distributions............... (0.78) (0.79) 0.00 (0.74) (0.84) (0.73)
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of period........ $ 14.17 $ 13.64 $ 12.84 $ 12.88 $ 10.47 $ 12.05
============ =========== =========== =========== =========== ===========
Total return...................... 10.08% 13.44% (.31%) 30.04% (6.14%) 14.21%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $122,956,790 $75,352,764 $62,098,817 $62,017,889 $44,012,329 $63,044,619
Ratio of net investment income to
average net assets.................. 5.50% 6.33% 6.40% 6.58% 6.45% 5.69%
Ratio of expenses to average net
assets.............................. 0.58% 0.49% 0.46% 0.48% 0.49% 0.48%
Portfolio turnover rate............... 40.77% 37.08% 59.78% 79.45% 110.19% 45.93%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1992 1991 1990 1989
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 11.03 $ 10.47 $ 10.70 $ 9.97
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.81 0.72 0.90 0.96
Net gains (losses) on investments
(both realized and unrealized).... 0.16 1.12 (0.23) 0.73
----------- ----------- ----------- -----------
Total from investment
operations...................... 0.97 1.84 0.67 1.69
----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)........................... (0.74) (0.72) (0.90) (0.96)
Distributions (from realized capital
gains)............................ 0.00* (0.37) 0.00 0.00
Distributions (from additional
paid-in capital).................. (0.07) (0.19) 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............... (0.81) (1.28) (0.90) (0.96)
----------- ----------- ----------- -----------
Net asset value, end of period........ $ 11.19 $ 11.03 $ 10.47 $ 10.70
=========== =========== =========== ===========
Total return...................... 8.79% 17.57% 6.26% 16.95%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $29,564,159 $23,207,734 $20,532,817 $20,770,552
Ratio of net investment income to
average net assets.................. 7.71% 8.12% 8.72% 8.54%
Ratio of expenses to average net
assets.............................. 0.51% 0.51% 0.53% 0.64%
Portfolio turnover rate............... 0.17% 63.68% 27.49% 36.00%
</TABLE>
- ---------------
* Less than $.01 per share.
120
<PAGE> 140
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period......................... $ 20.61 $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64 $ 13.13
---------- ---------- ---------- ---------- ---------- ----------- -----------
Income from investment operations
Net investment income.......... 1.41 0.34 0.36 0.43 0.38 0.37 0.42
Net gains (losses) on
investments (both realized
and unrealized).............. 2.85 3.80 1.91 3.03 (0.24) 1.01 (0.29)
---------- ---------- ---------- ---------- ---------- ----------- -----------
Total from investment
operations................. 4.26 4.14 2.27 3.46 0.14 1.38 0.13
---------- ---------- ---------- ---------- ---------- ----------- -----------
Less distributions
Dividends (from net investment
income)...................... (1.65) (0.39) 0.00 (0.43) (0.38) (0.37) (0.42)
Distributions (from realized
capital gains)............... (3.31) (1.13) 0.00 (0.43) (0.09) (0.18) (0.20)
Distributions (in excess of
realized capital gain)....... 0.00 0.00 0.00 (0.02) 0.00 0.00* 0.00*
---------- ---------- ---------- ---------- ---------- ----------- -----------
Total distributions.......... (4.96) (1.52) 0.00 (0.88) (0.47) (0.55) (0.62)
---------- ---------- ---------- ---------- ---------- ----------- -----------
Net asset value, end of period... $ 19.91 $ 20.61 $ 17.99 $ 15.72 $ 13.14 $ 13.47 $ 12.64
========== ========== ========== ========== ========== =========== ===========
Total return................. 23.69% 24.97% 14.44% 26.32% 1.03% 10.92% 0.99%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........ $3,279,620 $3,229,389 $3,380,587 $3,272,075 $2,860,700 $34,076,498 $22,704,133
Ratio of net investment income to
average net assets............. 0.40% 1.43% 2.02% 2.68% 3.19% 3.13% 3.68%
Ratio of expenses to average net
assets......................... 1.83% 1.10% 0.91% 0.95% 0.57% 0.53% 0.57%
Portfolio turnover rate.......... 34.45% 32.58% 24.43% 27.69% 51.38% 28.98% 26.44%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------
1991 1990 1989
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period......................... $ 11.75 $ 12.27 $ 11.26
----------- ----------- -----------
Income from investment operations
Net investment income.......... 0.53 0.70 0.75
Net gains (losses) on
investments (both realized
and unrealized).............. 1.86 (0.40) 1.74
----------- ----------- -----------
Total from investment
operations................. 2.39 0.30 2.49
----------- ----------- -----------
Less distributions
Dividends (from net investment
income)...................... (0.53) (0.71) (0.75)
Distributions (from realized
capital gains)............... (0.48) (0.11) (0.73)
Distributions (in excess of
realized capital gain)....... 0.00 0.00 0.00
----------- ----------- -----------
Total distributions.......... (1.01) (0.82) (1.48)
----------- ----------- -----------
Net asset value, end of period... $ 13.13 $ 11.75 $ 12.27
=========== =========== ===========
Total return................. 20.34% 2.44% 22.11%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........ $16,829,653 $10,373,263 $12,319,454
Ratio of net investment income to
average net assets............. 4.72% 6.04% 5.86%
Ratio of expenses to average net
assets......................... 0.60% 0.63% 0.67%
Portfolio turnover rate.......... 22.03% 11.49% 8.06%
</TABLE>
- ---------------
* Less than $01 per share
121
<PAGE> 141
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------------------------
1998 1997 1996 1995
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................ $ 10.89 $ 10.58 $ 10.21 $ 9.51
----------- ----------- ----------- ----------
Income from investment operations
Net investment income............................. 0.33 0.45 0.45 0.34
Net gains (losses) on investments (both realized
and unrealized)................................. 0.39 0.28 (0.08) 0.70
----------- ----------- ----------- ----------
Total from investment operations............ 0.72 0.73 0.37 1.04
----------- ----------- ----------- ----------
Less distributions
Dividends (from net investment income)............ (0.44) (0.42) 0.00 (0.34)
Distributions (from realized capital gains)....... 0.00 0.00 0.00 (0.00)*
Distributions (in excess of realized capital
gains).......................................... 0.00 0.00 0.00 (0.00)
----------- ----------- ----------- ----------
Total distributions......................... (0.44) (0.42) 0.00 (0.34)
----------- ----------- ----------- ----------
Net asset value, end of period...................... $ 11.17 $ 10.89 $ 10.58 $ 10.21
=========== =========== =========== ==========
Total return................................ 6.85% 7.18% 3.62% 10.89%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........................... $54,614,813 $25,065,893 $16,383,300 $8,555,893
Ratio of net investment income to average net
assets............................................ 5.10% 5.52% 5.59% 6.10%
Ratio of expenses to average net assets............. 0.64% 0.56% 0.55% 0.74%
Portfolio turnover rate............................. 29.55% 19.14% 12.52% 0.28%
<CAPTION>
FOR THE PERIOD
MAY 1, 1991**
FOR THE YEARS ENDED DECEMBER 31, THROUGH
------------------------------------------ DECEMBER 31,
1994 1993 1992 1991
---------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................ $ 9.72 $ 9.66 $ 10.70 $ 10.00
---------- ----------- ----------- -----------
Income from investment operations
Net investment income............................. 0.05 0.52 1.00 0.27
Net gains (losses) on investments (both realized
and unrealized)................................. (0.21) 0.27 (0.25) 0.70
---------- ----------- ----------- -----------
Total from investment operations............ (0.16) 0.79 0.75 0.97
---------- ----------- ----------- -----------
Less distributions
Dividends (from net investment income)............ (0.05) (0.52) (1.00) (0.27)
Distributions (from realized capital gains)....... 0.00 (0.21) (0.79) 0.00
Distributions (in excess of realized capital
gains).......................................... 0.00 0.00* 0.00 0.00
---------- ----------- ----------- -----------
Total distributions......................... (0.05) (0.73) (1.79) (0.27)
---------- ----------- ----------- -----------
Net asset value, end of period...................... $ 9.51 $ 9.72 $ 9.66 $ 10.70
========== =========== =========== ===========
Total return................................ (2.68%)+++ 8.18% 7.01% 9.70%++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........................... $1,204,231 $20,036,097 $19,096,791 $42,235,195
Ratio of net investment income to average net
assets............................................ 5.43%+++ 5.06% 6.25% 5.75%+
Ratio of expenses to average net assets............. 0.57%+++ 0.53% 0.50% .43%+
Portfolio turnover rate............................. 7.82% 41.01% 28.28% 151.81%
</TABLE>
- ---------------
* Less than $.01 per share
** Commencement of operations.
+ Annualized
++ Average Annual
+++ Annualized since Portfolio was dormant from June 24, 1994 to November
18,1994.
122
<PAGE> 142
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
------------ ------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------ ----------- -----------
Income from investment
operations
Net investment
income.............. 0.05 0.05 0.05 0.05 0.04 0.03 0.03
Less distributions
Dividends (from net
investment
income)............. (0.05) (0.05) (0.05) (0.05) (0.04) (0.03) (0.03)
------------ ------------ ------------ ------------ ------------ ----------- -----------
Net asset value, end of
period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============ =========== ===========
Total return........ 5.09% 5.15% 5.00% 5.50% 3.82% 2.75% 3.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period................ $349,421,360 $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................ 5.09% 5.11% 4.95% 5.30% 3.77% 2.62% 3.17%
Ratio of expenses to
average net assets.... 0.45% 0.46% 0.45% 0.46% 0.49% 0.46% 0.48%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------
1991 1990 1989
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value,
beginning of period... $ 1.00 $ 1.00 $ 1.00
----------- ----------- -----------
Income from investment
operations
Net investment
income.............. 0.06 0.07 0.08
Less distributions
Dividends (from net
investment
income)............. (0.06) (0.07) (0.08)
----------- ----------- -----------
Net asset value, end of
period................ $ 1.00 $ 1.00 $ 1.00
=========== =========== ===========
Total return........ 5.60% 7.22% 8.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period................ $34,642,974 $26,924,389 $10,817,623
Ratio of net investment
income to average net
assets................ 5.80% 7.63% 8.06%
Ratio of expenses to
average net assets.... 0.54% 0.54% 0.92%
</TABLE>
123
<PAGE> 143
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
MONY Series Fund, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the respective portfolios
constituting MONY Series Fund, Inc. (the "Fund") (comprising the Equity Growth,
Equity Income, Intermediate Term Bond, Long Term Bond, Diversified, Government
Securities, and Money Market Portfolios) at December 31, 1998, the results of
each of their operations for the year then ended, the changes in each of their
net assets for each of the two years in the period then ended and the financial
highlights for each of the periods presented, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
124
<PAGE> 144
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 Company of America
1740 Broadway
New York, New York 10019
PRINCIPAL UNDERWRITER AND DISTRIBUTOR
MONY Securities Corporation
1740 Broadway
New York, New York 10019
CUSTODIAN
Chase Manhattan Bank
4 New York Plaza
New York, New York 10004
TRANSFER AGENT
MONY Life Insurance Company
1740 Broadway
New York, New York 10019
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
</TABLE>
125
<PAGE> 145
(This page intentionally left blank.)
126
<PAGE> 146
ENTERPRISE ACCUMULATION TRUST
GROWTH PORTFOLIO
MONTAG & CALDWELL, INC.
ATLANTA, GEORGIA
Investment Management
Montag & Caldwell manages approximately $25 billion for institutional
clients, and its normal investment minimum is $40 million.
Investment Objective
The objective of the Growth Portfolio is to seek appreciation of capital
primarily through investments in common stocks.
Investment Philosophy
The equity selection process is a low-risk, growth stock approach.
Valuation is the key selection criterion that makes its investment style
risk-averse. Montag & Caldwell also emphasizes growth characteristics because it
seeks not only companies with shares that are attractively priced but also those
that may experience strong earnings growth relative to other companies.
Performance Review for the Month Ended December 31, 1998
The Growth Portfolio commenced operations on December 1, 1998. The S&P 500
Index returned 5.76 percent for the month ended December 31, 1998 versus 5.40
percent for the Growth Portfolio. Due to the short history of the Portfolio,
Montag's strategy for 1998 was to make initial investments of the net assets of
the Portfolio. At December 31, 1998, the Portfolio was approximately 74 percent
invested. During the month of December, technology and consumer growth issues in
the Portfolio performed particularly well.
GROWTH OF A $10,000 INVESTMENT
[ENTERPRISE EQUITY PORTFOLIO PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
GROWTH PORTFOLIO S&P 500 INDEX* LIPPER GROWTH INDEX*
<S> <C> <C> <C>
12/1/98 10000 10000 10000
12/31/98 10540 10576 10836
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does
not predict future performance. The investment returns and
principal value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original
cost.
* The S&P 500 Index is an unmanaged index that includes 500
companies which tend to be leaders in important industries
within the U.S. economy. It includes reinvested dividends
and excludes transaction and holding charges. Lipper Inc. is
an independent reporting service that measures the
performance of most mutual funds. The performance results
reflect an unchanged index and are net of all expenses other
than sales charges and redemption fees. One cannot invest
directly in an index.
127
<PAGE> 147
Future Investment Strategy
Given Montag's outlook for sustained growth in the economy with low
inflation, Montag believes that it may be another positive year for investors.
Montag expects corporate profit growth to remain subdued and bond yields to
remain fairly steady in the year ahead, and for stock market returns to be more
moderate than in 1998. These returns may approximate 10 percent when measured by
such popular stock market averages as the S&P 500 Index and the Dow Jones
Industrials.
An economic setting of moderate corporate profit gains and steady bond
yields bodes well for the shares of growth companies that should produce
superior earnings growth. With the U.S. economy likely to slow and foreign
currencies strengthening against the dollar, Montag believes high-quality,
global consumer growth companies are particularly attractive investments. Given
the consistent demand for their products and favorable demographic trends,
health care companies may continue to do well. Selected technology holdings that
are benefiting from new product cycles and better worldwide industry conditions
may also be rewarding investments.
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.
128
<PAGE> 148
ENTERPRISE ACCUMULATION TRUST
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 73.51% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES -- 2.16%
Interpublic Group of Companies
Inc. 400 $ 31,900
Manpower Inc. 400 10,075
----------
41,975
COMPUTER HARDWARE -- 11.30%
Cisco Systems Inc. (a) 400 37,125
Compaq Computer Corporation (a) 1,250 52,422
Hewlett Packard Company 950 64,897
Intel Corporation 550 65,209
----------
219,653
COMPUTER SERVICES -- 1.91%
Solectron Corporation (a) 400 37,175
COMPUTER SOFTWARE -- 4.01%
Electronic Arts (a) 400 22,450
Microsoft Corporation (a) 400 55,475
----------
77,925
CONSUMER PRODUCTS -- 7.05%
Gillette Company 1,500 72,469
Mattel Inc. 225 5,133
Procter & Gamble Company 650 59,353
----------
136,955
ELECTRICAL EQUIPMENT -- 2.36%
General Electric Company 450 45,928
ENTERTAINMENT & LEISURE -- 3.15%
Carnival Corporation 400 19,200
Walt Disney Company 1,400 42,000
----------
61,200
FOOD & BEVERAGES & TOBACCO -- 5.29%
Bestfoods 800 42,600
Coca-Cola Company 900 60,187
----------
102,787
HEALTH CARE -- 1.72%
Medtronic Inc. 450 33,413
HOTELS & RESTAURANTS -- 5.15%
Cracker Barrel Old Country Store 400 9,325
Marriott International Inc. (Class
A) 1,150 33,350
McDonald's Corporation 750 57,469
----------
100,144
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
MEDICAL INSTRUMENTS -- 2.76%
Boston Scientific Corporation (a) 2,000 $ 53,625
MISC. FINANCIAL SERVICES -- 2.63%
American Express Company 500 51,125
MULTI-LINE INSURANCE -- 2.48%
American International Group Inc. 500 48,312
PHARMACEUTICALS -- 13.89%
Bristol Myers Squibb Company 400 53,525
Johnson & Johnson 800 67,100
Lilly (Eli) & Company 450 39,994
Merck & Company Inc. 400 59,075
Pfizer Inc. 400 50,175
----------
269,869
RETAIL -- 5.18%
Costco Companies Inc. (a) 450 32,484
Gap Inc. 450 25,313
Home Depot Inc. 700 42,831
----------
100,628
TELECOMMUNICATIONS -- 2.47%
Tellabs Inc. (a) 700 47,994
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,380,534) 1,428,708
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,380,534) $1,428,708
OTHER ASSETS LESS LIABILITIES -- 26.49% 514,747
----------
NET ASSETS 100% $1,943,455
======================================================================
</TABLE>
(a) Non-income producing security.
See accompanying notes to financial statements.
129
<PAGE> 149
ENTERPRISE ACCUMULATION TRUST
GROWTH AND INCOME PORTFOLIO
RETIREMENT SYSTEM INVESTORS INC.
NEW YORK, NEW YORK
Investment Management
Retirement System Investors Inc. ("RSI") manages approximately $597 million
for all of its clients.
Investment Objective
The objective of the Growth and Income Portfolio is a total return in
excess of the total return of the Lipper Growth and Income Mutual Funds Index
measured over a period of three to five years, by investing primarily in a
broadly diversified group of large-capitalization stocks.
Investment Philosophy
RSI uses a fundamental analysis approach, including both qualitative and
quantitative factors, applied to a universe of well-established companies. The
portfolio manager seeks to identify reasonable valuations among this group of
stocks. Forward earnings projections and relative valuation parameters are used
to determine price objectives and return potential.
Performance Review for the Month Ended December 31, 1998
The Growth and Income Portfolio commenced operations on December 1, 1998.
The S&P 500 Index returned 5.76 percent for the month ended December 31, 1998
versus 2.20 percent for the Growth and Income Portfolio. Due to the short
history of the Portfolio, RSI's strategy for 1998 was to make initial
investments of the net assets of the Portfolio. At December 31, 1998, the
Portfolio was approximately 65 percent invested.
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION TRUST MANAGED PORTFOLIO GRAPH
<TABLE>
<CAPTION>
GROWTH AND INCOME LIPPER GROWTH &
PORTFOLIO S&P 500 INDEX* INCOME INDEX*
<S> <C> <C> <C>
12/1/98 10000 10000 10000
12/31/98 10220 10576 10340
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future performance. The investment returns and
principal value will fluctuate so that an investor's shares,
when redeemed may be worth more or less than their original
cost.
* The S&P 500 Index is an unmanaged index that includes 500
companies which tend to be leaders in important industries
within the U.S. economy. It includes reinvested dividends and
excludes transaction and holding charges. Lipper Inc. 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. One cannot invest directly in an
index.
130
<PAGE> 150
Future Investment Strategy
With the market at record valuation levels and an expected earnings
slowdown, RSI is placing more emphasis on controlling portfolio risk while
patiently seeking opportunities where its disciplines find them. Market breadth
will broaden during the year, which should benefit the Growth and Income
Portfolio, given its ample representation in value-type issues, which have
previously lagged the market.
RSI expects to maintain its relatively large concentration in broad
technology growth areas, but most new purchases will be in lower
price-to-earnings, value/growth type companies that have lagged the market and
now seem attractive on a risk/return basis.
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.
131
<PAGE> 151
ENTERPRISE ACCUMULATION TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 64.14% PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 3.62%
AlliedSignal Inc. 200 $ 8,862
Lockheed Martin Corporation 125 10,594
--------
19,456
BASIC INDUSTRIES -- 4.86%
Aluminum Company of America 350 26,097
BUILDING & CONSTRUCTION -- 7.98%
Southdown Inc. 725 42,911
COMPUTER HARDWARE -- 9.01%
Dallas Semiconductor Corporation 470 19,152
EMC Corporation (a) 40 3,400
IBM 140 25,865
--------
48,417
COMPUTER SERVICES -- 3.06%
Safeguard Scientifics Inc. 600 16,462
COMPUTER SOFTWARE -- 5.92%
BMC Software Inc. (a) 375 16,711
Learning Company Inc. 410 10,634
Sterling Commerce Inc. (a) 100 4,500
--------
31,845
CRUDE & PETROLEUM -- 5.36%
British Petroleum (ADR) 150 14,250
Texaco Inc. 275 14,541
--------
28,791
ELECTRICAL EQUIPMENT -- 2.70%
Emerson Electric Company 240 14,520
FOOD & BEVERAGES & TOBACCO -- 3.38%
Philip Morris Companies Inc. 340 18,190
MACHINERY -- 4.24%
Ingersoll Rand Company 300 14,081
Snap-On Inc. 250 8,703
--------
22,784
METALS & MINING -- 1.19%
Potash Corporation Saskatchewan
Inc. 100 6,388
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
MISC. FINANCIAL SERVICES -- 0.46%
Citigroup Inc. 50 $ 2,475
PHARMACEUTICALS -- 4.94%
Bristol-Myers Squibb Company 85 11,374
Johnson & Johnson 40 3,355
Merck & Company Inc. 80 11,815
--------
26,544
RETAIL -- 2.41%
Tiffany & Company 250 12,969
SAVINGS AND LOAN -- 2.49%
Washington Mutual Inc. 350 13,366
TELECOMMUNICATIONS -- 2.52%
Northern Telecom Ltd. 270 13,534
--------
TOTAL COMMON STOCKS
(IDENTIFIED COST $333,743) 344,749
- ---------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 1.08%
- ---------------------------------------------------------------------
MISC. FINANCIAL SERVICES -- 1.08%
Kmart Financing, 7.75% 100 5,794
--------
TOTAL CONVERTIBLE PREFERRED STOCK
(IDENTIFIED COST $5,431) 5,794
- ---------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $339,174) $350,543
OTHER ASSETS LESS LIABILITIES -- 34.78 % 186,945
--------
NET ASSETS 100% $537,488
=====================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
132
<PAGE> 152
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
OPCAP ADVISORS, INC.
NEW YORK, NEW YORK
Investment Management
OpCap Advisors, a wholly owned subsidiary of Oppenheimer Capital, has been
portfolio manager to this portfolio since inception. Oppenheimer Capital manages
approximately $62 billion for institutional clients, and its normal investment
minimum is $20 million.
Investment Objective
The objective of the Equity Portfolio is long-term capital appreciation
primarily from investments in securities of companies that are believed by the
portfolio manager to be undervalued in the marketplace in relation to factors
such as the companies' assets or earnings.
Investment Philosophy
OpCap Advisors' investment process uses a fundamental, bottom-up process of
value investing. The security selection process focuses on well-positioned
companies that generate high returns on assets and free cash flow, have strong
barriers to competition, have managements oriented to shareholder interests, and
sell at reasonable valuation levels. A complete qualitative review of the
business relative to its peers and its history is the key to the process. OpCap
seeks securities whose undervaluation is great enough to provide significant
upside reward with modest downside risk.
1998 Performance Review
The stock market continued its remarkable advance in 1998, with the S&P 500
Index providing a total return of 28.6 percent, inclusive of reinvested
dividends. This marked the fourth consecutive year in which the index has
delivered a total return of more than 20 percent. The market has benefited
throughout this period from an unusually favorable U.S. economic environment of
moderate growth with declining interest rates and extremely low inflation.
Beneath the surface, however, there were many crosscurrents in 1998. The
year's sharp increase for the S&P 500 Index was driven primarily by a limited
group of super-large company stocks. Many other stocks were left behind. For
instance, the Russell 2000 Index, a benchmark of small company stocks, actually
declined 2.6 percent in 1998. The strong relative performance of large versus
small stocks reflected the preference of many investors for highly liquid large
issues -- especially those with predictable earnings -- at a time when the
international economic outlook was uncertain and widespread concern existed that
the rate of economic growth in the U.S. might finally be slowing.
In addition, there was a wide disparity between the performance of growth
stocks (those projected to have high
future earnings growth rates) and value stocks (those considered to be
undervalued in relation to their inherent worth). The
S&P 500/BARRA Growth Index rose 42.2 percent in 1998 while the S&P 500/BARRA
Value Index increased only 14.7 percent.
Performance gaps of this type, favoring either growth or value, are common.
Nonetheless, the 1998 differential was one of the largest in history. Many
quality stocks that were inexpensive languished or even fell in price, while
some highly valued growth stocks became even more expensive. For instance, the
10 greatest contributors to the S&P 500 Index in 1998 advanced an average of
82.4 percent, reaching an average multiple of 46.7 times trailing earnings.
Value investors had a difficult year. OpCap underperformed the market for
several reasons. For one, it owns the stocks of a diverse group of large and
mid-sized companies, and mid-cap stocks did not perform nearly as well as did
the S&P 500 Index, which is dominated by larger companies. In addition, the
performance of the market in 1998 was driven primarily by large "growth" stocks,
reflecting a preference of many investors for owning highly liquid
issues -- especially those with predictable earnings -- in an uncertain global
economic environment. Year-to-date performance differentials between value and
growth styles of investing are common, and OpCap is confident the pendulum will
swing back to value investing in time.
In addition, with its risk-averse investment philosophy, OpCap sometimes
trails the market averages in periods of sharply rising prices. The portfolio
manager focuses on long-term investments in quality companies rather than on
attempting to predict near-term market trends.
133
<PAGE> 153
The average price-to-earnings ratio of the stocks owned by the portfolio
was 18.6 at the end of December, compared with a price-to-earnings ratio of 26.7
for the S&P 500 Index, indicating the relative value of the portfolio's
holdings. In contrast to their low relative valuations, the stocks owned by the
portfolio are expected to generate returns on equity that are well above the
average returns of the S&P 500 Index stocks. This combination of low relative
stock market prices and superior business characteristics helps control risk and
creates opportunity for investment profit.
GROWTH OF A $10,000 INVESTMENT
[ENTERPRISE EQUITY PORTFOLIO PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
EQUITY PORTFOLIO S&P 500 INDEX* LIPPER GROWTH INDEX*
<S> <C> <C> <C>
12/31/88 10000 10000 10000
12/31/89 12267 13169 12747
12/31/90 11995 12759 12057
12/31/91 15739 16647 16437
12/31/92 18557 17916 17692
12/31/93 20013 19722 19811
12/31/94 20787 19982 19499
12/31/95 28778 27491 25867
12/31/96 36037 33803 30402
12/31/97 45318 45080 38924
12/31/98 49805 57959 48924
</TABLE>
Enterprise performance numbers do not include variable account
expenses. Remember that historic performance does not predict
future performance. The investment returns and principal value
will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
* The S&P 500 Index is an unmanaged index that includes 500
companies that tend to be leaders in important industries
within the U.S. economy. It includes reinvested dividends and
excludes any transaction or holding charges. Lipper Inc. is an
independent reporting service that measures the performance of
most mutual funds. The performance results reflect an
unchanged index and are net of all expenses other than sales
charges and redemption fees. One cannot invest directly in an
index.
Future Investment Strategy
As for the prospects of the U.S. economy in 1999, the outlook is more
challenging than is usually the case. OpCap expects capital spending and rates
of inventory growth to slow and corporate profits to be mixed, with the
potential for downside surprises as deflationary pressures and rapid changes
derail profits at some companies. Clearly, these are negatives for the stock
market.
On the other hand, the Federal Reserve Board has been cutting interest
rates and adding money to the economy at an explosive rate, helping drive the
stock market's strong performance in the fourth quarter of 1998. Given its
concern about the health of international financial markets, the Fed is likely
to persist in rapid monetary growth. Monetary stimulus and lower interest rates
could therefore continue to benefit financial markets, housing and personal
consumption in the coming year.
In terms of the economic problems being experienced internationally,
renewed economic growth in Japan is a key part of the solution. Japanese banks
still must rid their books of enough bad loans to be considered healthy and to
contribute actively to financing economic growth. Even with government fiscal
stimulus programs, it is likely that the Japanese economy will decline slightly
this year. Europe is in much better shape, although its economic growth may slow
in 1999 as exports and capital spending are negatively affected by external
events. Severe economic problems still exist in the developing world, especially
in Latin America.
OpCap continues to see many long-term positives, including powerful trends
such as an information revolution that is transforming the way every business
works, continued growth in demand for stocks from the Baby Boomers saving for
retirement, a federal budget surplus and no inflation. Nonetheless, OpCap is
concerned about the high valuation levels of many stocks.
The challenge for investors in the coming year will be to chart a course
that captures favorable returns while guarding against the economic and market
uncertainty that exists at this time. Through its disciplined value philosophy,
OpCap seeks to do just that by owning businesses that generate high levels of
cash and use that cash to create value for shareholders through all economic
environments.
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.
134
<PAGE> 154
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 86.30% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.77%
Omnicom Group Inc. 190,000 $ 11,020,000
AEROSPACE -- 4.19%
AlliedSignal Inc. 396,840 17,584,972
Lockheed Martin Corporation 100,000 8,475,000
------------
26,059,972
AUTOMOTIVE -- 1.93%
LucasVarity (ADR) 357,000 11,959,500
BANKING -- 2.97%
BankBoston Corporation 224,000 8,722,000
Wells Fargo & Company 243,620 9,729,574
------------
18,451,574
CHEMICALS -- 1.20%
Du Pont (E.I.) De Nemours &
Company 140,000 7,428,750
CONGLOMERATES -- 8.04%
Berkshire Hathaway (Class B) (a) 7,035 16,415,000
Minnesota Mining & Manufacturing
Company 205,000 14,580,625
Textron Inc. 250,000 18,984,375
------------
49,980,000
CONSUMER PRODUCTS -- 1.02%
International Flavours &
Fragrances Inc. 100,000 4,418,750
Mattel Inc. 84,875 1,936,211
------------
6,354,961
CRUDE & PETROLEUM -- 0.99%
Anadarko Petroleum Corporation 200,000 6,175,000
DRUGS & MEDICAL PRODUCTS -- 1.73%
Becton, Dickinson & Company 252,316 10,770,739
ELECTRICAL EQUIPMENT -- 1.53%
Avnet Inc. 157,000 9,498,500
ELECTRONICS -- 2.83%
Conexant Systems Inc. (a) 28,000 471,800
Rockwell International
Corporation 426,000 17,133,188
------------
17,604,988
ENTERTAINMENT & LEISURE -- 1.59%
Carnival Corporation 206,000 9,888,000
FOOD & BEVERAGES & TOBACCO -- 4.99%
Diageo (ADR) 196,384 9,082,760
Philip Morris Companies Inc. 410,000 21,935,000
------------
31,017,760
HEALTH CARE -- 1.95%
Tenet Healthcare Corporation (a) 460,700 12,093,375
HOTELS & RESTAURANTS -- 3.03%
McDonald's Corporation 246,000 18,849,750
INSURANCE -- 16.54%
ACE Ltd. 828,000 28,514,250
AFLAC Inc. 270,256 11,891,264
Everest Reinsurance Holdings 480,000 18,690,000
EXEL Ltd. (Class A) 484,573 36,342,975
Renaissance Holdings Ltd. 200,000 7,325,000
------------
102,763,489
MACHINERY -- 4.50%
Caterpillar Inc. 241,000 11,086,000
Dover Corporation 460,000 16,847,500
------------
27,933,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
MANUFACTURING -- 5.06%
Avery Dennison Corporation 360,000 $ 16,222,500
General Dynamics Corporation 260,000 15,242,500
------------
31,465,000
MISC. FINANCIAL SERVICES -- 9.59%
Citigroup Inc. 264,360 13,085,820
Conseco Inc. 536,152 16,386,145
Countrywide Credit Industries
Inc. 286,088 14,358,042
Freddie Mac 244,180 15,734,349
------------
59,564,356
MULTI-LINE INSURANCE -- 0.90%
American International Group
Inc. 57,627 5,568,209
PAPER & FOREST PRODUCTS -- 0.88%
Champion International
Corporation 135,000 5,467,500
PRINTING & PUBLISHING -- 0.85%
Donnelley R.R. & Sons Company 120,000 5,257,500
RETAIL -- 2.28%
May Department Stores Company 234,712 14,170,737
TELECOMMUNICATIONS -- 3.20%
Motorola Inc. 120,000 7,327,500
Sprint Corporation 131,000 11,020,375
Sprint PCS (a) 65,500 1,514,687
------------
19,862,562
TRANSPORTATION -- 2.74%
AMR Corporation (a) 191,000 11,340,625
Canadian Pacific Ltd. 300,000 5,662,500
------------
17,003,125
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $402,833,805) 536,208,847
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 10.26%
- ----------------------------------------------------------------------
<S> <C> <C>
American Express Credit
Corporation, 4.90% due
02/01/99 $12,565,000 $ 12,511,983
Deere (John) Capital Corporation
5.22% due 01/20/99 16,336,000 16,290,994
Ford Motor Credit Company
5.17% due 01/11/99 15,000,000 14,978,458
General Electric Capital
Corporation 5.28% due 01/11/99 20,000,000 19,970,667
------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $63,752,102) 63,752,102
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.46%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 01/04/99
Collateral: U.S. Treasury Note
$20,545,000 5.75% due 08/15/03
Value $21,906,106 21,475,000 21,475,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $21,475,000) 21,475,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $488,060,907) $621,435,949
OTHER ASSETS LESS LIABILITIES -- (0.02)% (98,293)
------------
NET ASSETS 100% $621,337,656
======================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
135
<PAGE> 155
ENTERPRISE ACCUMULATION TRUST
EQUITY INCOME PORTFOLIO
1740 ADVISERS
NEW YORK, NEW YORK
Investment Management
1740 Advisers manages more than $1.9 billion for institutional clients and
its normal investment minimum is $20 million.
Investment Objective
The objective of the Equity Income Portfolio is to seek a combination of
growth and income to achieve an above-average and consistent total return,
primarily from investments in dividend-paying common stocks.
Investment Philosophy
Above-average returns can be achieved by buying undervalued, out-of-favor
stocks and selling them after the market has recognized and corrected their
undervaluation. Dividend yield relative to the S&P 500 Index is the measure of
the value used in this strategy. It provides a disciplined approach to buy and
sell decisions, enhances stability in the portfolio, and lessens overall market
risk.
Performance Review for the Month Ended December 31, 1998
The Equity Income Portfolio commenced operations on December 1, 1998. The
S&P Barra/Value Index returned 3.51 percent for the month ended December 31,
1998 versus 1.80 percent for the Equity Income Portfolio. Due to the short
history of the Portfolio, 1740 Advisers' strategy for 1998 was to make initial
investments of the net assets of the Portfolio. At December 31, 1998, the
Portfolio was approximately 80 percent invested.
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION TRUST EQUITY INCOME PORTFOLIO PERFORMANCE GRAPH
<TABLE>
<CAPTION>
EQUITY INCOME S&P BARRA/VALUE LIPPER GROWTH EQUITY
PORTFOLIO INDEX* INCOME INDEX*
<S> <C> <C> <C>
12/1/98 10000 10000 10000
12/31/98 10180 10351 10256
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future performance. The investment returns and
principal value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original
cost.
* The S & P Barra/Value Index is an unmanaged index that
includes reinvested dividends and excludes transaction and
holding charges. Lipper Inc. 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. One cannot invest directly in an index.
136
<PAGE> 156
Future Investment Strategy
The question for stock market valuation in 1999 will be whether the market
losses from lower earnings are offset by what it gains from lower rates. As of
now the answer seems to be positive. As long as rates stay low, and earnings are
stable, the flow of money into equity portfolios should continue. Valuations are
high, parts of the world are still fragile and, after four very strong years,
the market is entitled to a breather.
With the expectation for slower economic growth, low inflation and lack of
pricing power and uncertain earnings, selectivity becomes important. In this
environment companies that can achieve unit growth and who do not need price
increases to succeed should be favored. This means an emphasis on health
care -- pharmaceuticals, hospital supplies and telecommunications -- primarily
telephones. Selected industrial names such as General Electric, Xerox and Pitney
Bowes should also do well. Financials -- banks and insurance -- should benefit
from lower interest rates.
At the other end of the spectrum from the stable growers are the
economy-sensitive or cyclical stocks. The economic backdrop seems all wrong for
them, but that is already well known and is reflected in their very depressed
prices. If Southeast Asia stabilizes and shows any signs of improvement, the
energy, basic materials and capital good stocks which were hurt the most by the
economic crisis should benefit. The portfolio is slowly increasing exposure to
international oil, paper, forest products and chemical stocks. It may be early,
but usually these groups move in anticipation of a change in the world outlook.
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.
137
<PAGE> 157
ENTERPRISE ACCUMULATION TRUST
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 79.63% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 3.91%
Northrop Grumman Corporation 100 $ 7,312
United Technologies Corporation 100 10,875
-----------
18,187
AUTOMOTIVE -- 1.26%
Ford Motor Company 100 5,869
BANKING -- 9.07%
Bank of New York Company Inc. 100 4,025
BankAmerica Corporation 100 6,012
BankBoston Corporation 100 3,894
Chase Manhattan Corporation 100 6,806
First Union Corporation 100 6,081
Fleet Financial Group Inc. 100 4,469
Mellon Bank Corporation 100 6,875
Wells Fargo & Company 100 3,994
-----------
42,156
CAPITAL GOODS & SERVICES -- 1.03%
Cooper Industries Inc. 100 4,769
CHEMICALS -- 1.14%
Du Pont (E. I.) De Nemours &
Company 100 5,306
COMPUTER HARDWARE -- 2.54%
Xerox Corporation 100 11,800
CONSUMER DURABLES -- 0.88%
Dana Corporation 100 4,088
CONSUMER NON-DURABLES -- 0.95%
Avon Products Inc. 100 4,425
CRUDE & PETROLEUM -- 7.84%
Amoco Corporation 100 6,037
British Petroleum (ADR) 100 9,500
Chevron Corporation 100 8,294
Exxon Corporation 100 7,312
Texaco Inc. 100 5,288
-----------
36,431
ELECTRICAL EQUIPMENT -- 3.50%
Emerson Electric Company 100 6,050
General Electric Company 100 10,206
-----------
16,256
ENERGY -- 5.11%
Consolidated Natural Gas Company 100 5,400
Duke Energy Company 100 6,406
Enron Corporation 100 5,706
Williams Companies Inc. 200 6,238
-----------
23,750
FOOD & BEVERAGES & TOBACCO -- 1.15%
Philip Morris Companies Inc. 100 5,350
INSURANCE -- 1.66%
Cigna Corporation 100 7,731
MACHINERY -- 2.41%
Caterpillar Inc. 100 4,600
Pitney Bowes Inc. 100 6,606
-----------
11,206
MANUFACTURING -- 1.52%
Eaton Corporation 100 7,069
MISC. FINANCIAL SERVICES -- 1.06%
Citigroup Inc. 100 4,950
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
MULTI-LINE INSURANCE -- 1.76%
Lincoln National Corporation 100 $ 8,181
PAPER & FOREST PRODUCTS -- 3.11%
Bowater Inc. 100 4,144
Georgia Pacific Corporation 100 5,857
International Paper Company 100 4,481
-----------
14,482
PHARMACEUTICALS -- 8.19%
American Home Products
Corporation 100 5,631
Baxter International Inc. 100 6,431
Bristol-Myers Squibb Company 100 13,381
Pharmacia & Upjohn Inc. 100 5,663
Smithkline Beecham (ADR) 100 6,950
-----------
38,056
RAW MATERIALS -- 1.74%
Rohm & Haas Company 100 3,013
Weyerhaeuser Company 100 5,081
-----------
8,094
REAL ESTATE -- 4.20%
Boston Properties Inc. 200 6,100
Crescent Real Estate Equities 200 4,600
Equity Office Properties Trust 200 4,800
Equity Residential Properties
Trust 100 4,044
-----------
19,544
SAVINGS AND LOAN -- 2.41%
Federal National Mortgage
Association 100 7,400
Washington Mutual Inc. 100 3,819
-----------
11,219
TECHNOLOGY -- 0.93%
Thomas & Betts Corporation 100 4,331
TELECOMMUNICATIONS -- 10.62%
Ameritech Corporation 100 6,338
AT & T Corporation 100 7,525
Bell Atlantic Corporation 100 5,300
BellSouth Corporation 200 9,975
SBC Communications Inc. 100 5,363
Sprint Corporation 100 8,412
U S West Inc. 100 6,462
-----------
49,375
UTILITIES -- 1.64%
CMS Energy Corporation 100 4,844
Edison International 100 2,787
-----------
7,631
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $363,884) 370,256
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $363,884) $ 370,256
OTHER ASSETS LESS LIABILITIES -- 20.37% 94,698
-----------
NET ASSETS 100% $ 464,954
======================================================================
</TABLE>
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
138
<PAGE> 158
ENTERPRISE ACCUMULATION TRUST
CAPITAL APPRECIATION PORTFOLIO
PROVIDENT INVESTMENT COUNSEL, INC.
PASADENA, CALIFORNIA
Investment Management
Provident Investment Counsel manages approximately $20 billion for
institutional clients, and its usual investment minimum is $5 million.
Investment Objective
The objective of the Capital Appreciation Portfolio is to seek maximum
capital appreciation, primarily through investment in common stock of companies
that demonstrate accelerating earnings momentum and consistently strong
financial characteristics.
Investment Philosophy
Provident's investment philosophy is based on the belief that, over time,
the reason the price of a company's stock increases is because its earnings are
increasing. The investment strategy seeks to create a portfolio of companies
that, in aggregate, is growing its earnings at a faster and more consistent rate
than is the overall market.
Performance Review for the Month Ended December 31, 1998
The Capital Appreciation Portfolio commenced operations on December 1,
1998. The S&P Barra/Growth Index returned 7.61 percent for the month ended
December 31, 1998 versus 11.40 percent for the Capital Appreciation Portfolio.
Due to the short history of the Portfolio, Provident's strategy for 1998 was to
make initial investments of the net assets of the Portfolio. At December 31,
1998, the Portfolio was approximately 61 percent invested.
The Capital Appreciation Portfolio can attribute its superior first month
performance to several factors that Provident thinks will continue to provide
good relative returns. First, the portfolio manager emphasized the retail sector
given its strong outlook on consumer spending. Next, the Portfolio benefited
from technology services stocks. While 1998 may have been an exceptionally
volatile year for technology names, especially given their exposure to foreign
markets, the software side posted phenomenal gains, mostly in the fourth
quarter. The Portfolio contained names such as America Online, Fiserv and Lycos.
Finally, the dramatic underweighting in the consumer non-durable sectors helped
portfolio performance. Much of this sector was overly exposed to multinational
markets, and the Portfolio has purchased only two of these stocks: Infinity
Broadcasting and Outdoor Systems.
139
<PAGE> 159
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION TRUST CAPITAL APPRECIATION PORTFOLIO PERFORMANCE GRAPH
<TABLE>
<CAPTION>
CAPITAL APPRECIATION S&P BARRA/GROWTH LIPPER CAPITAL
PORTFOLIO INDEX* APPRECIATION INDEX*
<S> <C> <C> <C>
12/1/98 10000 10000 10000
12/31/98 11140 10761 10918
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does
not predict future performance. The investment returns and
principal value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original
cost.
* The S&P 500 Index is an unmanaged index that includes 500
companies that tend to be leaders in important industries
within the U.S. economy. It includes reinvested dividends
and excludes transaction and holding charges. Lipper Inc. 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. One cannot invest
directly in an index.
Future Investment Strategy
Given the low inflation environment in the U.S. with stronger wage growth
and record low savings rates, the portfolio will continue to emphasize retail
into 1999. Emphasis will be on only the highest-quality, "best in class"
technology names with superior fundamentals, market shares, proprietary products
and solid management. The Capital Appreciation Portfolio will continue to seek
companies with quality of operations and earnings in both the large and
mid-capitalization markets.
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.
140
<PAGE> 160
ENTERPRISE ACCUMULATION TRUST
CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 60.53% PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 0.59%
Outdoor Systems Inc. (a) 100 $ 3,000
BANKING -- 2.74%
FIRSTAR Corporation 150 13,987
BROADCASTING -- 0.80%
Infinity Broadcasting Corporation
(Class A) (a) 150 4,106
BUSINESS SERVICES -- 2.37%
Concord EFS Inc. (a) 100 4,237
CSG Systems International Inc. (a) 100 7,900
--------
12,137
COMPUTER HARDWARE -- 1.97%
Lexmark International Group Inc.
(Class A) (a) 100 10,050
COMPUTER SERVICES -- 8.40%
America Online Inc. (a) 100 16,000
Cadence Design Systems Inc. (a) 100 2,975
Fiserv Inc. (a) 200 10,287
Lycos Inc. (a) 100 5,556
Synopsys Inc. (a) 150 8,138
--------
42,956
ELECTRONICS -- 1.69%
SCI Systems Inc. (a) 150 8,663
FINANCE -- 3.12%
Associates First Capital
Corporation (Class A) 200 8,475
MBNA Corporation 300 7,481
--------
15,956
HEALTH CARE -- 3.44%
Henry Schein Inc. (a) 100 4,475
Omnicare Inc. 250 8,688
Total Renal Care Holdings Inc. (a) 150 4,434
--------
17,597
HOTELS & RESTAURANTS -- 1.69%
Brinker International Inc. (a) 300 8,663
MANUFACTURING -- 2.21%
Tyco International Ltd. 150 11,316
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
MEDICAL SERVICES -- 3.78%
Health Management Associates Inc.
(Class A) (a) 400 $ 8,650
Quintiles Transnational Corporation
(a) 200 10,675
--------
19,325
PHARMACEUTICALS -- 6.66%
Elan (ADR) (a) 150 10,434
Pfizer Inc. 100 12,544
Schering Plough Corporation 200 11,050
--------
34,028
RETAIL -- 17.96%
Bed Bath & Beyond Inc. (a) 300 10,237
Costco Companies Inc. (a) 150 10,828
CVS Corporation 200 11,000
Dollar Tree Stores Inc. (a) 200 8,738
Family Dollar Stores Inc. 400 8,800
Kohl's Corporation (a) 200 12,287
Linens 'n Things Inc. (a) 100 3,963
Office Depot Inc. (a) 100 3,694
Safeway Inc. (a) 150 9,141
Staples Inc. (a) 300 13,106
--------
91,794
TECHNOLOGY -- 1.71%
Waters Corporation (a) 100 8,725
TELECOMMUNICATIONS -- 1.40%
MCI Worldcom Inc. (a) 100 7,175
--------
TOTAL COMMON STOCKS
(IDENTIFIED COST $271,310) 309,478
- ---------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $271,310) $309,478
OTHER ASSETS LESS LIABILITIES -- 39.47% 201,778
--------
NET ASSETS 100% $511,256
=====================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
141
<PAGE> 161
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY GROWTH PORTFOLIO
WILLIAM D. WITTER, INC.
NEW YORK, NEW YORK
Investment Management
William D. Witter, Inc. manages approximately $905 million in assets under
management and has a normal investment minimum for a separate account of $1
million.
Investment Objective
The objective of the Small Company Growth Portfolio is to seek capital
appreciation by investing primarily in common stocks of small-capitalization
companies believed by the portfolio manager to have an outlook for strong
earnings growth and potential for significant capital appreciation.
Investment Philosophy
William D. Witter will seek out stocks of small companies that are expected
to have above-average growth in earnings, which are reasonably valued. The
manager uses a disciplined approach in evaluating growth companies. It relates
the expected growth rate in earnings to the price-to-earnings ratio of the
stock. Generally, the manager will not buy a stock if the price-to-earnings
ratio exceeds the growth rate. By using this valuation parameter, the manager
believes it moderates some of the inherent volatility in the small
capitalization sector of the market. Securities will be sold when the manager
believes the stock price exceeds the valuation criteria or when the stock
appreciates to the point where it is substantially overweighted in the portfolio
or when the company no longer meets expectations. The manager's goal is to hold
a stock for a minimum of one year but this may not always be feasible and there
may be times when short-term gains or losses will be realized.
1998 Performance Review for the Month Ended December 31, 1998
The Small Company Growth Portfolio commenced operations on December 1,
1998. The Russell 2000 Index returned 6.19 percent for the month ended December
31, 1998 versus 9.20 percent for the Small Company Growth Portfolio. Due to the
short history of the Portfolio, William D. Witter's strategy for 1998 was to
make initial investments of the net assets of the Portfolio. At December 31,
1998, the Portfolio was approximately 79 percent invested.
William D. Witter's investment approach is growth at a reasonable price.
The portfolio manager, therefore, utilizes both cyclical and secular growth
securities. For instance, an investment was made in the semi-conductor company
Cymer, Inc., which has dynamic, long-term growth prospects but is subject to
industry-specific, cyclical influences. Simultaneously, an investment was made
in National Computer Systems, a provider of testing and computer services to
educational institutions, which has a very consistent record of sales and
earnings increases.
During December, a positive contribution to the results was made by Ryanair
Holdings, a Dublin-based discount airline which should benefit significantly
from the opportunities to compete with formerly state-owned high-cost carriers.
The computer software companies collectively appreciated 55 percent during the
month.
142
<PAGE> 162
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION SMALL COMPANY GROWTH PERFORMANCE GRAPH
<TABLE>
<CAPTION>
SMALL COMPANY LIPPER SMALL CAP
GROWTH PORTFOLIO RUSSELL 2000 INDEX* INDEX*
<S> <C> <C> <C>
12/1/98 10000 10000 10000
12/31/98 10920 10619 10757
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future performance. The investors returns and
principal value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original
cost.
* The Russell 2000 Index is an unmanaged index that includes
reinvested dividends and excludes transaction and holding
charges. Lipper Inc. is an independent reporting service that
measures the performance of most mutual bonds. The
performance results reflect an unmanaged index and are net of
all expenses other than sales charges and redemption fees.
One cannot invest directly in an index.
Future Investment Strategy
A continuation of 2.5 percent to 3 percent economic growth rate is
anticipated. While new obstacles such as the current crisis in Brazil are
undoubtedly going to appear, the combination of the capital investments and
restructuring decisions of the late 1980s and of the 1990s has created a
positive environment.
Several of the keys to the recent and, Witter believes, future growth are
the productivity improvements associated with new technologies for use in
industry, commerce and telecommunications. Consequently, Witter shall continue
to look for investment opportunities in the technology sector.
Due to higher valuation levels, positions in some of the software holdings
may be reduced. The semi-conductor equipment sector appears to have strong
fundamentals beginning in the year 2000. Additions may be made to the Portfolio
in this area. Some commercial service providers such as Charles River Associates
have substantial opportunities for both exceptional revenue and earnings growth.
This sector as well as health care are ones that Witter expects to expand. While
it appears early, oil service issues are being reviewed as future portfolio
additions.
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.
143
<PAGE> 163
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 79.16% PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 1.45%
AAR Corporation 150 $ 3,581
Tristar Aerospace Company (a) 460 3,220
--------
6,801
BUSINESS SERVICES -- 8.20%
Charles River Associates Inc. (a) 600 13,125
Labor Ready Inc. (a) 440 8,663
Maximus Inc. (a) 450 16,650
--------
38,438
COMPUTER HARDWARE -- 2.64%
National Computer Systems Inc. 335 12,395
COMPUTER SERVICES -- 3.69%
Cymer Inc. (a) 880 12,870
Kronos Inc. (a) 100 4,431
--------
17,301
COMPUTER SOFTWARE -- 8.88%
Legato Systems Inc. (a) 130 8,572
Pervasive Software Inc. (a) 1,065 20,501
Verity Inc. (a) 475 12,588
--------
41,661
CONSTRUCTION -- 0.30%
Stolt Comex Seaway (ADR) (a) 250 1,406
DRUGS & MEDICAL PRODUCTS -- 1.37%
Geltex Pharmaceuticals Inc. (a) 285 6,448
ELECTRICAL EQUIPMENT -- 2.52%
C & D Technologies 430 11,825
ELECTRONICS -- 8.38%
Barringer Technologies Inc. (a) 1,440 12,420
Lernout & Hauspie Speech Products
(a) 400 13,050
Veeco Instruments Inc. (a) 260 13,812
--------
39,282
FINANCE -- 5.53%
Doral Financial Corporation 350 7,744
Hambrecht & Quist Group (a) 540 12,251
Raymond James Financial Inc. 280 5,915
--------
25,910
MANUFACTURING -- 6.70%
Astropower Inc. (a) 840 8,085
Candela Corporation (a) 170 956
Mueller Industries Inc. (a) 240 4,875
Trinity Industries Inc. 155 5,968
Varlen Corporation 500 11,531
--------
31,415
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
MEDICAL INSTRUMENTS -- 2.08%
Theragenics Corporation (a) 580 $ 9,751
MEDICAL SERVICES -- 3.17%
Maxxim Medical Inc. (a) 500 14,875
OIL SERVICES -- 0.67%
Atwood Oceanics Inc. (a) 185 3,145
PHARMACEUTICALS -- 0.82%
Jones Pharma Inc. 105 3,833
RETAIL -- 1.23%
Rush Enterprises Inc. (a) 525 5,775
TECHNOLOGY -- 8.81%
Applied Science & Technology Inc.
(a) 1,220 12,505
Catalytica Inc. (a) 830 14,940
Flir Systems Inc. (a) 460 10,695
Mecon Inc. (a) 300 3,150
--------
41,290
TRANSPORTATION -- 12.72%
Alaska Air Group Inc. (a) 370 16,372
Amtran Inc. (a) 225 6,103
Atlas Air Inc. (a) 310 15,171
Ryanair Holdings (ADR) (a) 285 10,759
Sea Containers Ltd. (Class A) 375 11,227
--------
59,632
--------
TOTAL COMMON STOCKS
(IDENTIFIED COST $337,932) 371,183
- ---------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $337,932) $371,183
OTHER ASSETS LESS LIABILITIES -- 20.84% 97,701
--------
NET ASSETS 100% $468,884
=====================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
144
<PAGE> 164
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
GABELLI ASSET MANAGEMENT COMPANY
RYE, NEW YORK
Investment Management
Gabelli Asset Management Company, which manages more than $7.2 billion for
institutional clients and whose normal investment minimum is $500,000, became
manager of the portfolio on June 1, 1996.
Investment Objective
The objective of the Small Company Value Portfolio is to seek maximum
capital appreciation, primarily through investment in the equity securities of
companies that have a market capitalization of no more than $1 billion.
Investment Philosophy
Gabelli Asset Management Company's focus is on free cash flow, which it
believes to be the best barometer of a business' value. Rising free cash flow
often foreshadows net earnings improvement. Gabelli also looks at long-term
earnings trends, and analyzes on and off balance sheet assets and liabilities.
Gabelli wants to know everything and anything that will add or detract from its
private market value estimates. Finally, Gabelli looks for a
catalyst -- something happening in the company's industry or indigenous to the
company itself that will reveal value.
1998 Performance Review
Small company stocks had a lackluster year, especially when compared to the
larger market indices. The last quarter of the year reversed the sharp
correction seen in the third quarter. The best performers in this portfolio were
media and communications companies. Price Communications, the cellular telephone
company, rose 372 percent. Cable company Century Communications rose 225
percent. Its affiliate telephone company, Centennial Cellular, was acquired and
resulted in a $200 million gain for Century. Data Broadcasting increased 218
percent for the year. The company plans an initial public offering of
MarketWatch, its business news and data web site.
The largest portfolio holding, Cablevision, rose 109 percent. Cablevision
is one of the leading telecommunications and entertainment companies. Its
businesses include cable in the core media markets of New York, Boston and
Cleveland. It owns Madison Square Garden Properties, including the New York
Knicks and Rangers.
Portfolio challenges were industrial companies that derive a portion of
their revenues from outside the U.S. These stocks were negatively impacted by
the sluggishness of the Southeast Asian economy. Companies such as
Aeroquip-Vickers, Flowserve, and Daniel Industries were poor performers, as were
issues such as Pioneer Group, Watts Industries and TVX Gold.
145
<PAGE> 165
GROWTH OF A $10,000 INVESTMENT
[ENTERPRISE ACCUMULATION TRUST GRAPH]
<TABLE>
<CAPTION>
SMALL COMPANY VALUE LIPPER SMALL CAP
PORTFOLIO RUSSELL 2000 INDEX* INDEX
<S> <C> <C> <C>
12/31/88 10000 10000 10000
12/31/89 11835 11624 12106
12/31/90 10680 9356 10438
12/31/91 15819 13665 15504
12/31/92 19219 16180 17238
12/31/93 22969 19238 20155
12/31/94 22973 18888 20058
12/31/95 25794 24260 26400
12/31/96 28686 28261 30193
12/31/97 41400 34582 34727
12/31/98 45379 33697 34432
</TABLE>
Enterprise performance numbers do not include variable account
expenses. Remember that historic performance does not predict
future performance. The investment returns and principal value
will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
* The Russell 2000 Index is an unmanaged index. It includes
reinvested dividends and excludes any transaction or holding
charges. The Russell 2000 Index replaces the Russell 1000
Value Index as the broad-based comparison to the Small Company
Value Portfolio as it more appropriately reflects the
securities market in which the Portfolio invests. Lipper Inc.
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. One cannot invest
directly in an index.
During 1998, an investment in the above hypothetical
shareholder account increased $3,908 compared to a decrease of
$885 and an increase of $6,719 in the Russell 2000 Index and
Russell 1000 Value Index, respectively.
Future Investment Strategy
Gabelli believes the four legs supporting the stock market stool are low
inflation, low interest rates, a powerful flow of funds and strong corporate
profit growth. While the first three remain very positive, there are doubts
about the fourth. Weak Asian markets and the ongoing international currency
crisis could lead to problems in the Latin American currencies. Serious economic
problems for the United States' Latin American trading partners would have a far
greater impact on the American economy and corporate profits than did economic
disruption in Southeast Asia.
While the U.S. economy is starting to slow, it is still advancing at a
respectable pace. If Latin America remains stable and the American consumer
continues to spend, the U.S. economy may continue to expand, albeit at a slower
pace than in recent years.
Gabelli will continue find many true business bargains in the small-cap
sector. These bargains present the opportunity for financially robust companies
to continue to snap up other companies in their own and related industries due
to necessity. For example, a telecommunications company that does not offer a
full range of services (long distance and local telephone Internet access and
transmission and home entertainment services) will likely have a very bleak
future. This bodes well for the portfolio during the coming year.
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.
146
<PAGE> 166
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 97.32% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.59%
BOWLIN Outdoor Advertising &
Travel Center Inc. (a) 50,000 $ 256,250
The Ackerley Group Inc. 340,000 6,205,000
------------
6,461,250
AEROSPACE -- 9.11%
AAR Corporation 8,500 202,938
Aeroquip Vickers Inc. 150,000 4,490,625
Ametek Inc. 70,000 1,561,875
Coltec Industries Inc. (a) 170,000 3,315,000
Curtiss-Wright Corporation 88,000 3,355,000
Gencorp Inc. 210,000 5,236,875
Kaman Corporation (Class A) 105,000 1,686,562
Moog Inc. (Class A) (a) 40,000 1,565,000
Sequa Corporation (Class A) (a) 70,000 4,191,250
Sequa Corporation (Class B) (a) 40,500 2,976,750
SPS Technologies Inc. (a) 150,000 8,493,750
------------
37,075,625
AGGREGATE -- 0.38%
Calmat Company 50,000 1,543,750
APPAREL & TEXTILES -- 0.30%
Carlyle Industries Inc. (a) 200,259 225,291
Hartmarx Corporation (a) 180,000 1,012,500
------------
1,237,791
AUTOMOTIVE -- 8.50%
A.O. Smith Corporation 10,000 245,625
Borg-Warner Automotive Inc. 8,000 446,500
Clarcor Inc. 230,000 4,600,000
Federal Mogul Corporation 27,000 1,606,500
Lund International Holdings Inc.
(a) 22,000 187,000
Modine Manufacturing Company 248,000 8,990,000
Navistar International
Corporation Inc. (a) 90,000 2,565,000
Scheib Earl Inc. (a) 225,000 1,237,500
Standard Motor Products Inc. 231,500 5,613,875
Superior Industries
International Inc. 65,000 1,807,812
Tyler Corporation (a) 175,000 1,071,875
Wynns International Inc. 280,000 6,195,000
------------
34,566,687
BROADCASTING -- 8.71%
Chris-Craft Industries Inc. (a) 160,000 7,710,000
Echostar Communications
Corporation (Class A) (a) 10,000 483,750
Fisher Companies Inc. 23,000 1,575,500
Gray Communications Systems Inc. 86,000 1,574,875
Gray Communications Systems Inc.
(Class B) 165,000 2,258,437
Paxson Communications
Corporation (a) 220,000 2,021,250
United Television Inc. 55,000 6,325,000
USA Networks Inc. (a) 407,000 13,481,875
------------
35,430,687
BUSINESS SERVICES -- 0.07%
Nashua Corporation (a) 22,000 292,875
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
CABLE -- 7.84%
AFC Cable Systems Inc. (a) 26,000 $ 874,250
Cablevision Systems Corporation
(Class A) (a) 400,000 20,075,000
Century Communications
Corporation (Class A) (a) 128,000 4,060,000
Rogers Communications Inc.
(Class B) (a) 380,000 3,372,500
TCI Satellite Entertainment Inc.
(Class A) (a) 150,000 215,625
United International Holdings
Inc. (Class A) (a) 72,000 1,386,000
United Video Satellite Group
(Class A) (a) 80,000 1,890,000
------------
31,873,375
CHEMICALS -- 2.15%
Church & Dwight Company Inc. 82,000 2,946,875
Lawter International Inc. 275,000 3,196,875
Sybron Chemicals Inc. (a) 193,000 2,605,500
------------
8,749,250
COMPUTER HARDWARE -- 0.01%
Cerion Technologies Inc. (a) 90,000 39,375
COMPUTER SERVICES -- 0.17%
Checkfree Holdings Corporation
(a) 30,000 701,250
CONSUMER DURABLES -- 0.67%
Hussmann International Inc. 100,000 1,937,500
Noel Group (a) 135,000 151,875
Oneida Ltd. 43,000 636,938
------------
2,726,313
CONSUMER PRODUCTS -- 0.29%
American Safety Razor Company
(a) 30,000 360,000
ARC International Corporation
(a) 30,000 46,875
Mikasa Inc. 62,000 790,500
------------
1,197,375
CONSUMER SERVICES -- 0.95%
Berlitz International Inc. (a) 58,000 1,682,000
ITT Educational Services Inc.
(a) 55,000 1,870,000
N2K Inc. (a) 23,000 300,438
------------
3,852,438
ELECTRICAL EQUIPMENT -- 1.69%
Ampco-Pittsburgh Corporation 130,000 1,413,750
Oak Technology Inc. (a) 150,000 525,000
Thomas Industries Inc. 220,000 4,317,500
UCAR International Inc. (a) 35,000 623,437
------------
6,879,687
ELECTRONICS -- 0.65%
CTS Corporation 55,000 2,392,500
Power-One Inc. (a) 7,000 49,000
Watkins Johnson Co. 10,000 203,750
------------
2,645,250
ENERGY -- 0.18%
Kaneb Services Inc. (a) 180,000 731,250
</TABLE>
147
<PAGE> 167
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
ENTERTAINMENT & LEISURE -- 5.29%
Ascent Entertainment Group Inc.
(a) 142,000 $ 1,047,250
Bull Run Corporation (a) 130,000 438,750
Churchill Downs Inc. 35,000 1,150,625
Florida Panthers Holdings Inc.
(a) 95,000 884,687
Gaylord Entertainment Company 261,501 7,877,718
GC Companies Inc. (a) 180,000 7,492,500
Grand Casinos Inc. (a) 80,000 645,000
Jackpot Enterprises Inc. (a) 212,000 2,000,750
------------
21,537,280
FINANCE -- 0.79%
Advest Group Inc. 8,000 148,000
Pioneer Group Inc. 150,000 2,962,500
Southwest Securities Group Inc. 5,000 100,625
------------
3,211,125
FOOD & BEVERAGES &
TOBACCO -- 5.78%
Brunos Inc. (a) 85,000 65,078
Buenos Aires Embotelladora (ADR)
(a) (d) 40,227 --
Celestial Seasonings Inc. (a) 227,000 6,313,437
Chock Full o' Nuts Corporation
(a) 295,000 1,843,750
General Cigar Holdings Inc.
(Class A) (a) 205,000 1,780,938
General Cigar Holdings Inc.
(Class B) (a) 190,000 1,650,625
Ingles Markets Inc. (Class A) 80,000 875,000
Pepsi Cola Puerto Rico Bottling
Company (a) 155,000 804,063
Ralcorp Holdings Inc. (a) 75,000 1,368,750
Tootsie Roll Industries Inc. 95,000 3,716,875
Whitman Corporation 200,000 5,075,000
------------
23,493,516
HOTELS & RESTAURANTS -- 1.12%
Advantica Restaurant Group Inc.
(a) 54,000 334,125
Aztar Corporation (a) 510,000 2,581,875
Extended Stay America Inc. (a) 50,000 525,000
Trump Hotels & Casino Resorts
Inc. (a) 300,000 1,125,000
------------
4,566,000
INSURANCE -- 3.20%
Argonaut Group Inc. 95,000 2,327,500
Danielson Holding Corporation
(a) 25,000 89,062
Liberty Corporation 130,000 6,402,500
Midland Company 174,000 4,197,750
------------
13,016,812
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
MACHINERY -- 4.97%
Baldwin Technology Company Inc.
(Class A) (a) 165,000 $ 928,125
Banner Aerospace Inc. (a) 78,000 736,125
Commercial Intertech Corporation 25,000 323,438
Daniel Industries Inc. 50,000 606,250
Fairchild Corporation (Class A)
(a) 110,000 1,732,500
Flowserve Corporation 132,000 2,186,250
Franklin Electric Company Inc. 18,500 1,248,750
Idex Corporation 85,000 2,082,500
Katy Industries Inc. 160,000 2,810,000
Kollmorgen Corporation 140,000 2,135,000
Nortek Inc. (a) 100,000 2,762,500
Paxar Corporation (a) 185,000 1,653,437
Standex International
Corporation 18,000 472,500
Tennant Company 7,000 280,875
Watts Industries Inc. (Class A) 15,000 249,375
------------
20,207,625
MANUFACTURING -- 3.46%
Barnes Group Inc. 27,000 793,125
Belden Inc. 25,000 529,687
Bway Corporation (a) 3,000 45,188
Crane Company 85,000 2,565,937
Cuno Inc. (a) 75,000 1,218,750
Fedders Corporation (Class A) 385,000 2,021,250
Fedders USA Inc. 100,000 581,250
Graco Inc. 25,000 737,500
Industrial Distribution Group
Inc. (a) 35,000 266,875
Material Sciences Corporation
(a) 70,000 595,000
Oil Dri Corporation of America 120,000 1,800,000
Park Ohio Holdings Corporation
(a) 111,400 1,684,925
Rawlings Sporting Goods Company
Inc. (a) 22,000 248,875
Strattec Security Corporation
(a) 33,000 990,000
------------
14,078,362
METALS & MINING -- 0.61%
Prime Resources Group Inc. 40,000 276,020
TVX Gold Inc. (a) 470,000 851,875
WHX Corporation (a) 135,000 1,358,438
------------
2,486,333
MISC. FINANCIAL SERVICES -- 0.77%
Data Broadcasting Corporation
(a) 175,000 3,128,125
NEUTRACEUTICALS -- 0.28%
Irwin Naturals/4Health Inc. (a) 40,000 190,000
Weider Nutrition International
Inc. 150,000 956,250
------------
1,146,250
OIL SERVICES -- 0.12%
BJ Services Company (a) 30,000 468,750
PAPER PRODUCTS -- 0.45%
Greif Brothers Corporation
(Class A) 63,000 1,838,813
PHARMACEUTICALS -- 2.76%
Agribrands International Inc.
(a) 15,000 450,000
Carter Wallace Inc. 260,000 5,102,500
Ivax Corporation (a) 405,000 5,037,187
Twinlab Corporation (a) 50,000 656,250
------------
11,245,937
</TABLE>
148
<PAGE> 168
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
PRINTING & PUBLISHING -- 5.57%
Belo A.H. Corporation (Class A) 30,000 $ 598,125
Lee Enterprises Inc. 50,000 1,575,000
McClatchy Company (Class A) 90,000 3,183,750
Media General Inc. (Class A) 137,000 7,261,000
Meredith Corporation 40,000 1,515,000
Penton Media Inc. 20,000 405,000
Price Communications Corporation
(a) 300,000 3,881,250
Pulitzer Publishing Company 30,000 2,598,750
Thomas Nelson Inc. 10,000 135,000
Topps Company Inc. (a) 300,000 1,500,000
------------
22,652,875
REAL ESTATE -- 1.14%
Catellus Development Corporation
(a) 225,000 3,220,313
Griffin Land & Nurseries Inc.
(a) 110,000 1,402,500
------------
4,622,813
RETAIL -- 3.14%
Burlington Coat Factory
Warehouse Corporation 115,000 1,875,937
Coldwater Creek Inc. (a) 40,000 550,000
Lillian Vernon Corporation 325,000 5,362,500
Neiman Marcus Group Inc. (a) 180,000 4,488,750
Phar Mor Inc. (a) 65,000 495,625
------------
12,772,812
SECURITY & INVESTIGATION
SERVICES -- 2.54%
Borg-Warner Security Corporation
(a) 30,000 562,500
Pittway Corporation (Class A) 78,000 2,578,875
Rollins Inc. 353,500 6,186,250
Wackenhut Corporation (Class A) 40,000 1,017,500
------------
10,345,125
TELECOMMUNICATIONS -- 8.40%
Aerial Communications Inc. (a) 206,000 1,210,250
Aliant Communications Inc. 10,000 408,750
Associated Group Inc. (Class A)
(a) 76,000 3,268,000
Atlantic Tele-Network Inc. 15,000 135,938
Cellullar Communications of
Puerto Rico (a) 98,000 1,813,000
Centennial Cellular Corporation
(Class A) (a) 145,000 5,945,000
Commonwealth Telephone
Enterprises (Class B) (a) 54,833 1,727,239
Commonwealth Telephone
Enterprises Inc. 24,077 806,580
Communications Systems Inc. 22,000 259,875
COMSAT Corporation 175,000 6,300,000
CoreComm Ltd. (a) 108,000 1,701,000
GST Telecommunications Inc. (a) 230,000 1,509,375
RCN Corporation (a) 123,000 2,175,562
Rogers Cantel Mobile
Communications Inc. (Class B)
(a) 50,000 609,375
Telephone and Data Systems Inc. 140,000 6,291,250
------------
34,161,194
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
TRANSPORTATION -- 2.49%
GATX Corporation 211,000 $ 7,991,625
Hudson General Corporation 30,500 1,921,500
TransPro Inc. 40,000 195,000
------------
10,108,125
UTILITIES -- 0.95%
Citizens Utilities Company
(Class B) (a) 392,925 3,192,516
Eastern Enterprises 15,000 656,250
------------
3,848,766
WASTE MANAGEMENT -- 0.14%
Envirosource Inc. (a) 113,628 582,344
WIRELESS COMMUNICATIONS -- 0.09%
Teligent Inc. (Class A) (a) 12,500 359,375
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $327,467,791) 395,882,585
- ----------------------------------------------------------------------
U.S. TREASURY BILLS -- 1.38%
- ----------------------------------------------------------------------
U.S. Treasury Bill 4.35%
due 02/04/99 $3,098,000 3,085,273
U.S. Treasury Bill 4.54%
due 01/21/99 2,537,000 2,530,601
------------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $5,615,874) 5,615,874
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.43%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 01/04/99
Collateral: U.S. Treasury Note $5,580,000 5.75%,
due 08/15/03
Value $5,949,675 5,830,000 5,830,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $5,830,000) 5,830,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $338,913,665) $407,328,459
OTHER ASSETS LESS LIABILITIES -- (0.13)% (527,340)
------------
NET ASSETS 100% $406,801,119
======================================================================
</TABLE>
(a) Non-income producing security.
(d) Security is fair valued. Also includes 1,971,123 of rights valued at $0,
expiring on 1/5/99.
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
149
<PAGE> 169
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
BRINSON PARTNERS, INC.
CHICAGO, ILLINOIS
Investment Management
Brinson Partners, Inc., is a global investment management firm with offices
in Chicago, London and Tokyo. Brinson Partners manages approximately $163
billion for institutional clients, and its normal investment minimum is $25
million.
Investment Objective
The objective of the International Growth Portfolio is to seek capital
appreciation, primarily through a diversified portfolio of non-U.S. equity
securities.
Investment Philosophy
Brinson Partners believes that discrepancies exist between prices and
fundamental values, both across and within the international equity markets. It
takes advantage of these discrepancies by using a disciplined approach to
measure fundamental value from the perspective of the long-term investor. This
international equity strategy reflects the manager's decisions about the
relative attractiveness of the asset class, the individual equity markets,
currencies, the industries across and within those markets, other common risk
factors within those markets, and individual international companies.
1998 Performance Review
Returns for non-U.S. markets were enhanced by foreign currency strength.
The notable exceptions were the Canadian dollar, as well as the Australian and
New Zealand dollars, all of which weakened relative to the U.S. dollar. The
Japanese yen strengthened sharply at the start of the fourth quarter, to end the
year in positive territory relative to the U.S. dollar.
With upturns in the markets through the fourth quarter, the majority of
individual European markets ended the year with double-digit returns (in
dollar-hedged terms): Finland (110.75 percent) and Belgium (59.07 percent)
posted the strongest returns. Norway (-26.89 percent) and New Zealand (-16.22
percent) were the weakest performers, as were the Asian markets of Singapore
(-7.43 percent), Hong Kong (-6.28 percent) and Japan (-3.84 percent).
For the year, currency allocation and market allocation detracted from
performance. The portfolio's overweight to the weak Australian and New Zealand
dollar currencies, as well as the underweight of the yen, hurt performance.
Security selection, particularly Japan stock selection, was a positive
contributor to performance for the year. Strategic cash held in the portfolio
detracted from performance in the first half of the year, otherwise market
allocation decisions overall provided favorable results.
150
<PAGE> 170
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION TRUST INTERNATIONAL GROWTH PORTFOLIO PERFORMANCE GRAPH
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH LIPPER INTERNATIONAL
PORTFOLIO EAFE INDEX* INDEX*
<S> <C> <C> <C>
11/30/94 10000 10000 10000
12/31/94 10041 10063 9867
12/31/95 11510 11191 10855
12/31/96 12967 11868 12422
12/31/97 13648 12079 13322
12/31/98 15672 14495 15009
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future performance. The investment returns and
principal value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original
cost.
* The EAFE Index is an unmanaged index that includes
reinvested dividends and excludes transaction or holding
charges. Lipper Inc. 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. One cannot invest directly in an index.
Future Investment Strategy
Monetary union, privatization/restructuring/merger activity and increased
capital flows have boosted European equity markets. Despite their excellent
performance, European corporations are still early into their restructuring,
with the potential for improving profitability ahead. Europe is the portfolio's
largest overweight. Most Pacific markets continued to suffer consequences of the
1997 currency crisis. This situation has been aggravated in Japan by flawed
macroeconomic policies, a largely insolvent financial sector and an unprofitable
domestic corporate sector. The portfolio remains very underweight compared to
Japan, Hong Kong and Singapore. In comparison, Australia and New Zealand have
been unduly impacted by their geographic proximity to Asia and are attractively
priced. The portfolio maintains overweight in these markets.
Currency strategies within the portfolio at the end of the year remained
similar to that of the market allocations. The only notable hedging strategies
were the six percent underweight of the Japanese yen and a four percent
underweight of the British pound sterling. The Hong Kong dollar was also
underweight, such that there were no currency exposures to Hong Kong. Offsetting
these positions were overweights in the Australian dollar and to a lesser
degree, the New Zealand dollar.
As with all international growth portfolios, the International Growth
Portfolio carries additional risks associated with possibly less stable foreign
securities and currencies, lack of uniform accounting standards and political
instability.
The views expressed in this report reflect those of the portfolio manager
only through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
151
<PAGE> 171
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS, RIGHTS AND NUMBER OF SHARES OR
WARRANTS -- 96.43% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 5.03%
Amcor Ltd. 22,800 $ 97,423
Brambles Industries Ltd. 14,000 341,013
Broken Hill Proprietary Company
Ltd. 55,000 405,077
CSR Ltd. 76,000 185,820
David Jones Ltd. 100,000 110,301
Lend Lease Corporation Ltd. 18,810 253,582
National Australia Bank Ltd. 42,900 646,694
News Corporation 58,354 385,475
Orica Ltd. 17,300 90,004
Pacific Dunlop Ltd. 67,300 108,874
Qantas Airways Ltd. 78,612 160,413
QBE Insurance Group Ltd. 39,559 163,627
Rio Tinto Ltd. 13,963 165,607
Santos Ltd. 53,100 142,520
Telstra Corporation Ltd. 143,400 670,471
Westpac Bank Corporation Ltd. 72,100 482,463
WMC Ltd. 43,000 129,640
Woolworths Ltd. 23,500 80,009
-----------
4,619,013
BELGIUM -- 2.87%
Electrabel 2,330 1,017,732
Fortis 3,328 1,198,542
Fortis (Wts)(a) 128 7
KBC Bancassurance Holdings 5,340 420,156
KBC Bancassurance Holdings
(Wts)(a) 130 8
-----------
2,636,445
CANADA -- 1.86%
Agrium Inc. 7,600 67,125
Alcan Aluminum Ltd. 4,300 116,748
Bank Montreal 2,600 104,953
Canadian National Railway Company 2,600 135,656
Canadian Pacific Ltd. 7,800 146,712
Extendicare Inc. 6,000 34,151
Hudson's Bay Company 6,300 79,755
Imasco Ltd. 4,200 89,853
Imperial Oil Ltd. 7,700 123,673
Magna International Inc. 1,100 68,656
Newbridge Networks Corporation 3,100 94,511
NOVA Chemicals Corporation 5,242 68,590
Potash Corporation Saskatchewan
Inc. 1,000 64,442
Royal Bank Canada 3,100 155,253
Seagram Ltd. 1,500 57,164
Shaw Communications Inc. (Class
B) 5,700 138,351
Transcanada Pipelines Ltd. 7,812 114,740
Westcoast Energy Inc. 2,300 45,895
-----------
1,706,228
DENMARK -- 0.58%
Tele Danmark (Class B) 3,920 529,089
FINLAND -- 2.57%
Merita (Class A) 60,900 384,581
Nokia (Class A) 12,200 1,483,428
UPM-Kymmene 17,550 488,743
-----------
2,356,752
FRANCE -- 9.92%
Air Liquide 3,131 574,007
Alcatel Alsthom 4,476 547,591
AXA 4,060 588,195
AXA (Wts)(a) 2,120 1,005
Banque Nationale de Paris 5,430 446,948
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
Compagnie de Saint Gobain 2,122 $ 299,456
Compagnie Financiere de Paribas 3,060 265,828
Danone 1,200 343,409
Dexia France 2,089 321,701
Elf Aquitaine 2,970 343,162
France Telecom 5,900 468,539
Lagardere S.C.A 13,580 576,865
Michelin (CGDE) (Class B) 5,645 225,659
Pinault-Printemps-Redoute 1,450 276,981
Rhone-Poulenc 8,486 436,518
SEITA 11,550 723,037
Societe Generale 2,275 368,248
Suez Lyonnaise Des Eaux 3,144 645,558
Thomson CSF 10,120 434,412
Total (Class B) 4,297 435,003
Vivendi 3,029 785,557
-----------
9,107,679
GERMANY -- 11.03%
Allianz 3,865 1,416,966
Bayer 36,150 1,508,600
DaimlerChrysler (a) 11,088 1,094,429
Deutsche Bank 7,100 417,710
Deutsche Telekom 20,400 670,779
Dresdner Bank 9,650 405,316
Hoechst 11,290 468,102
Mannesmann 8,300 951,218
SAP 800 345,614
Siemens 17,650 1,138,471
Veba 20,600 1,232,341
Volkswagen 6,000 478,819
-----------
10,128,365
IRELAND -- 0.12%
Smurfit (Jefferson) Group 60,000 107,659
ITALY -- 4.20%
Assicurazioni Generali 19,694 821,849
ENI 154,000 1,005,897
ENI (ADR) 1,400 94,850
La Rinascente 52,000 534,482
Montedison 313,580 416,286
Sao Paolo Imi 25,480 449,978
Telecom Italia 2 17
Telecom Italia - RNC 11 69
TIM 72,000 531,253
-----------
3,854,681
JAPAN -- 13.92%
Acom Company 2,000 128,439
Amada Company 26,000 125,803
Bridgestone Corporation 6,000 136,134
Canon Inc. 21,000 448,607
Citizen Watch Company (a) 24,000 144,361
Dai Nippon Printing Company Ltd. 24,000 382,556
Daiichi Pharmaceutical Company
Ltd. 22,000 371,499
Daikin Industries Ltd. 27,000 267,492
Daiwa House Industry Company Ltd. 13,000 138,337
Denso Corporation 22,000 406,723
Fanuc Ltd. (a) 10,800 369,713
Fuji Photo Film Company 5,000 185,759
Fujitsu Ltd. 16,000 213,003
Honda Motor Company Ltd. 12,000 393,808
Hoya Corporation 6,000 291,906
Ito-Yokado Company Ltd. 10,000 698,806
Kaneka Corporation 26,000 194,799
Kao Corporation 9,000 203,008
Kirin Brewery Company Ltd. 28,000 356,656
Kokuyo Company Ltd. 8,000 107,634
</TABLE>
152
<PAGE> 172
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
Kuraray Company Ltd. 32,000 $ 352,977
Marui Company Ltd. 14,000 269,350
Matsushita Electric Industrial
Company Ltd. 31,000 548,156
NGK Insulators Ltd. 42,000 541,300
Nintendo Company Ltd. 3,100 300,265
Nippon Meat Packer Inc. 17,000 273,684
Omron Corporation 8,000 109,544
Sankyo Company Ltd. 19,000 415,126
Secom Company Ltd. 6,000 496,771
Sega Enterprises Ltd. 3,000 66,475
Sekisui House Ltd. 24,000 253,693
Shin-Etsu Chemical Company Ltd. 5,000 120,301
Sony Corporation 5,700 414,958
Sumitomo Chemical Company Ltd. 30,000 116,762
Sumitomo Electric Industries 21,000 236,099
Takeda Chemical Industries 16,000 615,657
TDK Corporation 5,000 456,878
Tokio Marine & Fire Insurance
Company Ltd. 24,000 286,599
Toray Industries Inc. 66,000 344,449
Toshiba Corporation 61,000 363,140
Toyota Motor Corporation 18,000 488,810
Yamato Transport Company Ltd. 10,000 139,761
-----------
12,775,798
MALAYSIA -- 0.04%
Malayan Banking Berhad 9,000 18,237
Nestle (Malaysia) Berhad 5,000 20,000
-----------
38,237
NETHERLANDS -- 7.11%
ABN Amro Holdings 18,951 398,448
Elsevier 36,800 515,165
Heineken 12,850 772,901
ING Group 21,799 1,328,571
KPN 24,519 1,226,798
Royal Dutch Petroleum Company 33,000 1,642,359
Unilever 7,480 639,027
-----------
6,523,269
NEW ZEALAND -- 1.95%
Auckland International Airport
Ltd. (a) 52,900 73,766
Brierley Investments Ltd. 428,400 96,933
Carter Holt Harvey Ltd. 157,900 141,249
Fletcher Challenge Building
Division 51,950 80,096
Fletcher Challenge Energy
Division 63,650 120,575
Fletcher Challenge Paper Division 122,000 81,530
Lion Nathan Ltd. 70,200 178,418
Telecom Corporation of New
Zealand Ltd. 217,500 944,209
Telecom Corporation of New
Zealand Ltd. (ADR) 2,000 71,375
-----------
1,788,151
NORWAY -- 0.30%
Norsk Hydro 3,600 121,761
Norske Skogindustrier 5,100 149,003
-----------
270,764
SINGAPORE -- 0.71%
Singapore Press Holdings Ltd. 35,938 391,814
United Overseas Bank Ltd. 41,000 263,234
-----------
655,048
SPAIN -- 1.84%
Banco Popular Espanol 6,258 471,155
Empresa Nacionale Electricidade 33,405 883,780
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
Telefonica 7,266 $ 322,604
Telefonica (Rts) 7,266 6,442
-----------
1,683,981
SWEDEN -- 3.88%
Astra (Class A) 24,750 504,151
Electrolux (Series B) 37,060 636,307
Ericsson LM (Class B) 22,430 532,812
Investor (Class B) 8,710 392,362
Nordbanken Holding 43,520 278,535
Skandia Forsakrings 40,560 619,023
Svenska Handelsbanken (Class A) 4,200 176,792
Swedish Match 116,950 424,629
-----------
3,564,611
SWITZERLAND -- 7.16%
Credit Suisse Group 594 92,968
Julius Baer Holdings Ltd. (Class
B) 79 262,528
Nestle 718 1,562,801
Novartis 1,039 2,042,149
Roche Holdings 99 1,207,862
Schweizerische Ruckversicherungs-
Gesellschaft 253 659,528
Swisscom (a) 1,783 746,324
-----------
6,574,160
UNITED KINGDOM -- 21.35%
Allied Zurich(a) 57,100 858,065
Barclays 30,000 650,440
Billiton 25,000 49,842
BOC Group 32,000 458,814
Booker 49,000 50,881
Boots Company 35,000 598,355
British American Tobacco (a) 27,100 238,628
British Petroleum Company 74,299 1,106,029
British Steel 289,000 438,133
Cable & Wireless 20,000 244,559
Charter 54,357 298,020
Coats Viyella 230,900 103,577
Diageo 37,942 420,772
Fairview Holdings (a) 31,750 46,947
FKI 217,500 484,217
Garban 2,400 9,131
General Electric Company 82,900 750,631
Glaxo Wellcome 40,700 1,401,070
Greenalls Group 39,000 207,667
Hanson 71,650 570,200
Hillsdown Holdings 63,500 79,125
House of Fraser 101,000 88,935
Lloyds TSB Group 111,264 1,584,204
Marks & Spencer 127,000 873,534
Mirror Group 107,000 267,100
National Westminster Bank 24,700 478,078
Nycomed Amersham 48,000 330,952
Peninsular and Oriental Steam
Navigation Company 23,500 277,986
Prudential Corporation 84,000 1,281,380
Reed International 46,000 365,310
Rio Tinto 37,100 431,467
RJB Mining 81,000 104,968
Royal & Sun Alliance Insurance
Group 31,738 258,376
Sainsbury J. 23,000 186,094
Scottish and Southern Energy 72,400 816,139
Smithkline Beecham 62,000 859,275
Terranova Foods (a) 31,750 58,025
TESCO 219,000 636,734
Thames Water 25,583 493,043
</TABLE>
153
<PAGE> 173
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
Thames Water (Class B)(a) 29,000 $ 35,172
United News & Media 24,000 208,540
Vodafone Group 19,570 317,984
Williams 33,461 191,238
Yorkshire Water 43,000 392,922
-----------
19,602,559
-----------
TOTAL COMMON STOCKS, RIGHTS AND WARRANTS
(IDENTIFIED COST $78,005,029) 88,522,489
- ----------------------------------------------------------------------
PREFERRED ORDINARY STOCK -- 0.18%
- ----------------------------------------------------------------------
AUSTRALIA -- 0.18%
News Corporation 26,987 164,214
-----------
TOTAL PREFERRED ORDINARY STOCK
(IDENTIFIED COST $116,399) 164,214
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMERCIAL PAPER -- 2.32% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
Parker-Hannifin Corporation
5.05% due 01/04/99 $ 2,126,000 $ 2,125,105
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $2,125,105) 2,125,105
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $80,246,533) $90,811,808
OTHER ASSETS LESS LIABILITIES -- 1.07% 982,408
-----------
NET ASSETS 100% $91,794,216
======================================================================
</TABLE>
(a) Non-income producing security.
(Rts) Rights.
(Wts) Warrants.
ADR American Depository Receipt.
See accompanying notes to financial statements.
154
<PAGE> 174
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
CAYWOOD-SCHOLL CAPITAL MANAGEMENT
SAN DIEGO, CALIFORNIA
Investment Management
Caywood-Scholl manages approximately $973 million for institutional
clients, and its normal investment minimum is $1 million.
Investment Objective
The objective of the 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.
Investment Philosophy
Caywood-Scholl's investment philosophy of seeking relative value and
avoiding risk is credit research-driven. The discipline of credit research
facilitates the informed use of a variety of lower-rated securities in
aggressive fixed income investing.
1998 Performance Review
The predominant theme in 1998 was volatility. After advancing more than
four percent during the first quarter, the high-yield market was derailed by
both global and domestic events; including spreading "Asian contagion," a
Russian default, the Long Term Capital Management bailout, deflating
commodities, and the impeachment process of the U.S. President. Whereas risk had
been in vogue with most investors for much of the 1990s, risk was abruptly out
of fashion. As a result, the high-yield market underperformed the Treasury
market.
Despite the lackluster performance it should be noted that the high-yield
market had a record year in terms of new issuance and mutual fund inflows. The
market has grown to more than $550 billion. The scope of institutional investors
involved in the market has increased, as has the number of market makers.
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION TRUST HIGH-YIELD BOND PERFORMANCE PORTFOLIO GRAPH
<TABLE>
<CAPTION>
HIGH-YIELD BOND LIPPER HIGH-YIELD
PORTFOLIO LEHMAN BB INDEX* INDEX*
<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 13314 13376 13296
12/31/97 15095 15066 15047
12/31/98 15638 15839 15035
</TABLE>
Enterprise performance numbers do not include variable
account expenses. Remember that historic performance does not
predict future. The investment returns and principal value
will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
* The Lehman BB Index is an unmanaged index that includes
reinvested interest and excludes transaction and holding
charges. Lipper Inc. 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.
One cannot invest directly in an index.
155
<PAGE> 175
Future Investment Strategy
Looking ahead to 1999, Caywood-Scholl believes that the valuation in the
high-yield market is still very attractive. With most economists predicting
domestic growth in the neighborhood of two percent, the portfolio manager does
not expect a meaningful increase in credit risk. The domestic bank sector is
healthy and should remain supportive to leveraged companies. A robust stock
market is always a positive for high-yield issuers, giving them an alternative
source of capital. Lastly, given the growth of the market and the general
improvement of the quality of issuers, it is easy to have a positive outlook on
the market.
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.
156
<PAGE> 176
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
CORPORATE BONDS, CONVERTIBLE
SECURITIES, COMMON & NUMBER OF SHARES OR
PREFERRED STOCKS -- 87.96% PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 1.27%
BE Aerospace Inc.
9.50% due 11/01/08 $ 250,000 $ 264,375
BE Aerospace Inc. (Series B)
8.00% due 03/01/08 400,000 392,000
Coltec Industries Inc.
7.50% due 04/15/08 600,000 633,750
------------
1,290,125
AUTOMOTIVE -- 0.87%
Sonic Automotive Inc. (Series
B) 11.00% due 08/01/08 600,000 581,250
United Auto Group Inc. (Series
B),
11.00% due 07/15/07 350,000 307,125
------------
888,375
BANKING -- 1.88%
Bay View Capital Corporation
9.125% due 08/15/07 650,000 627,250
DVI Inc.
9.875% due 02/01/04 200,000 192,000
Imperial Credit Industries
Inc. (Series B),
9.875% due 01/15/07 550,000 426,250
Western Financial Savings Bank
Orange California,
8.50% due 07/01/03 750,000 664,687
------------
1,910,187
BROADCASTING -- 5.13%
Allbritton Communications
Company (Series B),
8.875% due 02/01/08 700,000 708,750
Chancellor Media Corporation
9.00% due 10/01/08 750,000 795,000
Chancellor Media Corporation
(Series B),
8.125% due 12/15/07 500,000 496,250
Fox Family Worldwide Inc.
9.25% due 11/01/07 600,000 592,500
Fox Family Worldwide Inc.
0% due 11/01/07 (c) 750,000 477,187
Fox/Liberty Networks LLC
0% due 08/15/07 (c) 1,600,000 1,080,000
Rogers Communications Inc.
8.875% due 07/15/07 500,000 515,000
Rogers Communications Inc.
9.125% due 01/15/06 200,000 208,000
Sinclair Broadcast Group Inc.
8.75% due 12/15/07 350,000 352,625
------------
5,225,312
BUILDING & CONSTRUCTION -- 4.47%
American Standard Inc.
7.375% due 02/01/08 1,600,000 1,618,000
Building Materials Corporation
America (Series B),
7.75% due 07/15/05 400,000 395,000
Building Materials Corporation
America (Series B),
8.00% due 10/15/07 400,000 383,000
International Comfort Products
(Series B),
8.625% due 05/15/08 500,000 500,000
Nortek Inc.
8.875% due 08/01/08 400,000 406,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
Nortek Inc. (Series B)
9.125% due 09/01/07 $ 700,000 $ 719,250
Republic Group Inc.
9.50% due 07/15/08 550,000 536,250
------------
4,557,500
BUSINESS SERVICES -- 1.26%
CEX Holdings Inc.
9.625% due 06/01/08 600,000 547,500
United Rentals Inc.
8.80% due 08/15/08 750,000 733,125
------------
1,280,625
CABLE -- 3.25%
Adelphia Communications
Corporation (Series B),
9.25% due 10/01/02 100,000 105,875
Adelphia Communications
Corporation (Series B),
10.50% due 07/15/04 850,000 928,625
Century Communications
Corporation,
9.50% due 03/01/05 400,000 445,000
Century Communications
Corporation (Series B),
Zero Coupon due 01/15/08 850,000 432,438
CSC Holdings Inc.
7.875% due 12/15/07 350,000 369,201
Lenfest Communications Inc.
7.625% due 02/15/08 300,000 311,625
Mediacom LLC/Mediacom Capital
Corporation (Series B),
8.50% due 04/15/08 550,000 561,687
TCI Satellite Entertainment
Inc.
0% due 02/15/07 (c) 800,000 159,000
------------
3,313,451
CHEMICALS -- 1.18%
Huntsman Corporation 9.50% due
07/01/07 300,000 300,000
Huntsman Polymers Corporation
11.75% due 12/01/04 250,000 272,500
PCI Chemicals Canada Inc.
9.25% due 10/15/07 350,000 282,188
Pioneer Americas Acquisition
Corporation (Series B),
9.25% due 06/15/07 450,000 349,875
------------
1,204,563
COMMUNICATIONS -- 6.01%
Globalstar LP/Capital
11.375% due 02/15/04 950,000 710,125
Globalstar LP/Capital
10.75% due 11/01/04 150,000 107,625
Globalstar LP/Capital
11.50% due 06/01/05 $ 250,000 186,875
Globalstar Telecommunications
(Wts)(a) 450 10,150
Iridium Capital Corporation
(Series A)
13.00% due 07/15/05 $ 550,000 504,625
Iridium Capital Corporation
(Series B),
14.00% due 07/15/05 $ 800,000 763,000
Iridium World Communications
(Wts)(a) 450 56,250
</TABLE>
157
<PAGE> 177
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
Level 3 Communications Inc.
0% due 12/01/08 (c) $ 700,000 $ 408,625
Level 3 Communications Inc.
9.125% due 05/01/08 $1,000,000 992,500
Loral Space & Communication
Ltd. (Wts)(a) 600 4,994
Loral Space & Communication
Ltd.
0% due 01/15/07 (c) $1,100,000 705,375
Qwest Communications
International Inc.,
7.25% due 11/01/08 500,000 511,250
Qwest Communications
International Inc.,
7.50% due 11/01/08 750,000 782,812
Qwest Communications
International Inc. (Series
B),
0% due 02/01/08 (c) 500,000 375,625
------------
6,119,831
CONSUMER PRODUCTS -- 3.45%
Boyds Collection Ltd.
9.00% due 05/15/08 300,000 306,375
Chattem Inc. (Series B)
8.875% due 04/01/08 1,000,000 1,025,000
Corning Consumer Products
Company (Series B),
9.625% due 05/01/08 500,000 358,750
French Fragrances Inc. (Series
B),
10.375% due 05/15/07 350,000 348,688
Revlon Consumer Products
Corporation,
8.625% due 02/01/08 350,000 321,125
Samsonite Corporation
10.75% due 06/15/08 550,000 466,125
Sealy Mattress Company (Series
B),
0% due 12/15/07 (c) 1,150,000 688,562
------------
3,514,625
CONTAINERS/PACKAGING -- 4.84%
Buckeye Cellulose Corporation
8.50% due 12/15/05 550,000 569,250
Huntsman Packaging Corporation
9.125% due 10/01/07 600,000 595,500
Owens Illinois Inc.
7.35% due 05/15/08 1,600,000 1,639,296
Owens Illinois Inc.
8.10% due 05/15/07 550,000 589,220
Printpack Inc. (Series B)
9.875% due 08/15/04 500,000 511,250
Printpack Inc. (Series B)
10.625% due 08/15/06 250,000 244,375
Stone Container Corporation
10.75% due 10/01/02 200,000 207,750
United States Can Corporation
(Series B)
10.125% due 10/15/06 550,000 578,188
------------
4,934,829
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
CRUDE & PETROLEUM -- 0.96%
Clark Refining & Marketing
Inc.
8.875% due 11/15/07 $ 250,000 $ 231,563
Trizec Hahn Corporation
(Series B),
10.875% due 12/01/05 800,000 750,000
------------
981,563
ELECTRONICS -- 0.46%
Axiohm Transaction Solutions
9.75% due 10/01/07 500,000 465,000
ENERGY -- 0.95%
Cogentrix Energy Inc.
8.75% due 10/15/08 150,000 161,250
Nuevo Energy Company (Series
B)
8.875% due 06/01/08 300,000 284,250
Ocean Energy Inc. (Series B)
8.375% due 07/01/08 550,000 521,125
------------
966,625
ENTERTAINMENT & LEISURE -- 0.19%
AMF Bowling Inc.
Zero Coupon due 05/12/18 1,550,000 197,625
FOOD & BEVERAGES & TOBACCO -- 2.15%
NBTY Inc. (Series B)
8.625% due 09/15/07 800,000 785,000
Purina Mills Inc.
9.00% due 03/15/10 450,000 462,375
RJR Nabisco Inc.
8.75% due 07/15/07 150,000 163,245
Seagram Joseph E. & Sons Inc.
6.80% due 12/15/08 500,000 499,795
Twin Laboratories Inc.
10.25% due 05/15/06 260,000 277,550
------------
2,187,965
GAMING -- 1.96%
Circus Circus Enterprises Inc.
9.25% due 12/01/05 750,000 765,937
Empress Entertainment Inc.
8.125% due 07/01/06 550,000 551,375
Mirage Resorts Inc.
6.75% due 08/01/07 200,000 193,308
Trump Atlantic City Associates
11.25% due 05/01/06 550,000 482,625
------------
1,993,245
HEALTH CARE -- 5.75%
Columbia HCA Healthcare
Corporation,
7.00% due 07/01/07 500,000 475,735
Dade International Inc.
(Series B), 11.125% due
05/01/06 350,000 388,062
Fisher Scientific
International Inc.,
9.00% due 02/01/08 $1,200,000 1,197,000
Fresenius Medical Care Capital
Trust (Preferred Security) 250 263,125
Hudson Respiratory Care Inc.
9.125% due 04/15/08 $ 350,000 286,125
Magellan Health Services Inc.
9.00% due 02/15/08 400,000 357,000
Maxxim Medical Inc.
10.50% due 08/01/06 650,000 698,750
</TABLE>
158
<PAGE> 178
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
Pharmerica Inc.
8.375% due 04/01/08 $ 400,000 $ 359,000
PHP Healthcare Corporation
6.50% due 12/15/02 (b) 550,000 5,500
Quest Diagnostics Inc.
10.75% due 12/15/06 600,000 663,750
Tenet Healthcare Corporation
6.00% due 12/01/05 700,000 633,500
Tenet Healthcare Corporation
8.125% due 12/01/08 300,000 310,038
Vencor Operating Inc.
9.875% due 05/01/05 250,000 216,875
------------
5,854,460
HOTELS & RESTAURANTS -- 3.64%
AFC Enterprises Inc.
10.25% due 05/15/07 550,000 573,375
Apple South Inc.
9.75% due 06/01/06 150,000 142,500
Felcor Suites LP
7.625% due 10/01/07 250,000 229,535
Foodmaker Corporation (Series
B) 9.75% due 11/01/03 250,000 262,629
Foodmaker Inc.
8.375% due 04/15/08 700,000 702,625
Hammon John Q. Hotels
8.875% due 02/15/04 250,000 228,125
HMH Properties Inc. (Series A)
7.875% due 08/01/05 1,000,000 983,750
Perkins Family Restaurant
(Series B), 10.125% due
12/15/07 550,000 586,437
------------
3,708,976
MACHINERY -- 0.76%
Columbus McKinnon Corporation
8.50% due 04/01/08 500,000 471,250
Navistar International
Corporation (Series B) 8.00%
due 02/01/08 300,000 304,875
------------
776,125
MEDICAL SERVICES -- 0.68%
Rural/Metro Corporation
7.875% due 03/15/08 750,000 688,125
METALS & MINING -- 2.00%
AK Steel Corporation
9.125% due 12/15/06 450,000 469,125
Kaiser Aluminum & Chemical
Corporation (Series D),
10.875% due 10/15/06 250,000 251,875
Metals USA Inc.
8.625% due 02/15/08 250,000 226,563
Oregon Steel Mills Inc.
11.00% due 06/15/03 250,000 257,812
WCI Steel Inc. (Series B)
10.00% due 12/01/04 700,000 696,500
WHX Corporation
10.50% due 04/15/05 150,000 137,625
------------
2,039,500
PAPER & FOREST PRODUCTS -- 0.37%
SD Warren Company (Series B)
12.00% due 12/15/04 350,000 381,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
PHARMACEUTICALS -- 1.10%
Biovail Corporation
International New
10.875% due 11/15/05 $1,100,000 $ 1,116,500
PRINTING & PUBLISHING -- 0.96%
Nebraska Book Company Inc.
8.75% due 02/15/08 650,000 618,313
Von Hoffmann Press Inc.
10.875% due 05/15/07 350,000 359,625
------------
977,938
REAL ESTATE -- 0.55%
Crown Castle International
Corporation
0% due 11/15/07 (c) 800,000 555,000
RETAIL -- 7.11%
Charming Shoppes Inc.
7.50% due 07/15/06 350,000 319,375
Cole National Group Inc.
8.625% due 08/15/07 850,000 839,375
Jitney Jungle Stores America
Inc.,
10.375% due 09/15/07 500,000 515,000
Meyer Fred Inc.
7.45% due 03/01/08 1,650,000 1,782,115
Michaels Stores Inc.
6.75% due 01/15/03 (c) 550,000 479,875
Nine West Group Inc.
5.50% due 07/15/03 150,000 117,375
Randalls Food Markets Inc.
(Series B), 9.375% due
07/01/07 800,000 858,000
Saks Inc.
7.50% due 12/01/10 400,000 403,634
Saks Inc.
8.25% due 11/15/08 1,800,000 1,927,026
------------
7,241,775
TELECOMMUNICATIONS -- 15.83%
21st Century Telecom Group
Inc.,
0% due 02/15/08 (c) 850,000 357,000
CCPR Services Inc.
10.00% due 02/01/07 650,000 625,625
Comcast Cellular Holdings Inc.
(Series B), 9.50% due
05/01/07 1,550,000 1,650,750
E. Spire Communications Inc.,
0% due 11/01/05 (c) $ 800,000 604,248
E. Spire Communications Inc.
(Wts)(a) 300 7,203
Firstworld Communications
Inc.,
0% due 04/15/08 (c) $ 300,000 89,625
Firstworld Communications Inc.
(Wts) (a) 300 --
Flag Ltd.
8.25% due 01/30/08 $ 400,000 394,000
ICG Holdings Inc.
0% due 05/01/06 (c) 900,000 666,000
ICG Services Inc.
0% due 02/15/08 (c) 250,000 133,438
ICO Global Communication
15.00% due 08/01/05 250,000 187,500
Intermedia Communications Inc.
8.50% due 01/15/08 400,000 383,000
Intermedia Communications Inc.
0% due 07/15/07 (c) 250,000 174,688
</TABLE>
159
<PAGE> 179
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
McLeodUSA Inc.
0% due 03/01/07 (c) $ 650,000 $ 496,437
Metromedia Fiber Network Inc.
10.00% due 11/15/08 350,000 361,813
Metronet Communications
Corporation,
12.00% due 08/15/07 100,000 111,250
Metronet Communications
Corporation,
0% due 11/01/07 (c) $1,250,000 766,562
Metronet Communications
Corporation (Wts)(a) 100 5,315
Nextel Communications Inc.
0% due 09/15/07 (c) $1,300,000 836,875
Nextel Communications Inc.
0% due 10/31/07 (c) 900,000 545,375
Nextlink Communications Inc.
10.75% due 11/15/08 750,000 768,750
Nextlink Communications Inc.
0% due 04/15/08 (c) 1,200,000 685,500
Orange
8.00% due 08/01/08 $1,250,000 1,253,125
Pagemart Nationwide Inc. 875 8,750
Pathnet Inc.
12.25% due 04/15/08 $ 250,000 174,375
Pathnet Inc. (Wts.)(a) 250 --
RCN Corporation
0% due 10/15/07 (c) $ 900,000 525,375
RCN Corporation (Series B)
0% due 02/15/08 (c) 700,000 377,125
Rogers Cantel Inc.
8.80% due 10/01/07 850,000 855,312
Sprint Spectrum LP
0% due 08/15/06 (c) 2,000,000 1,817,500
Teligent Inc. (Series B)
0% due 03/01/08 (c) 200,000 97,750
Winstar Communications Inc.
10.00% due 03/15/08 600,000 514,500
Winstar Equipment Corporation
12.50% due 03/15/04 650,000 654,875
------------
16,129,641
TEXTILES -- 3.71%
Phillips Van Heusen
Corporation
9.50% due 05/01/08 900,000 901,125
Pillowtex Corporation (Series
B)
9.00% due 12/15/07 350,000 363,125
Polymer Group Inc. (Series B)
8.75% due 03/01/08 250,000 244,375
Polymer Group Inc. (Series B)
9.00% due 07/01/07 500,000 493,750
Westpoint Stevens Inc.
7.875% due 06/15/08 1,200,000 1,230,000
William Carter Company (Series
A),
10.375% due 12/01/06 500,000 545,625
------------
3,778,000
TRANSPORTATION -- 0.60%
Eletson Holdings Inc.
9.25% due 11/15/03 300,000 294,750
TBS Shipping International
Ltd.
10.00% due 05/01/05 550,000 317,625
------------
612,375
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
UTILITIES -- 3.23%
Calenergy Inc.
7.52% due 09/15/08 $1,200,000 $ 1,257,420
Calenergy Inc.
7.63% due 10/15/07 100,000 106,513
Ferrellgas Partners LP (Series
B),
9.375% due 06/15/06 300,000 300,750
Midland Funding Corporation
(Series C-94),
10.33% due 07/23/02 103,826 111,484
Niagara Mohawk Power
Corporation (Series G),
7.75% due 10/01/08 1,400,000 1,515,822
------------
3,291,989
WASTE MANAGEMENT -- 1.39%
Allied Waste North America
7.625% due 01/01/06 700,000 708,750
Allied Waste North America
7.875% due 01/01/09 700,000 709,625
------------
1,418,375
------------
TOTAL CORPORATE BONDS, CONVERTIBLE SECURITIES, COMMON & PREFERRED
STOCKS
(IDENTIFIED COST $92,476,611) 89,601,725
- --------------------------------------------------------------------
FOREIGN BONDS -- 6.02%
- --------------------------------------------------------------------
APPAREL & TEXTILES -- 0.21%
Reliance Industries Ltd.
8.25% due 01/15/27 250,000 209,465
BASIC INDUSTRIES -- 0.98%
Cemex 12.75% due 07/15/06 900,000 1,003,500
BROADCASTING -- 1.14%
Grupo Televisa
11.875% due 05/15/06 350,000 350,000
Grupo Televisa (Series A)
11.375% due 05/15/03 300,000 297,000
Satelites Mexicanos
10.125% due 11/01/04 650,000 518,375
------------
1,165,375
CABLE -- 0.36%
Kabelmedia Holding
0% due 08/01/06 (c) 450,000 369,000
CAPITAL GOODS &
SERVICES -- 0.36%
Cemex International Capital
Inc.
9.66% due 12/29/49 400,000 365,000
CONGLOMERATES -- 0.24%
Hutchison Whampoa Finance Ltd.
6.95% due 08/01/07 250,000 244,010
CONTAINERS/PACKAGING -- 0.40%
Viacap
11.375% due 05/15/07 450,000 405,000
ENERGY -- 0.22%
Petroleos Mexicanos 8.85% due
09/15/07 250,000 225,625
</TABLE>
160
<PAGE> 180
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
GOVERNMENT BOND -- 1.47%
Republic of Argentina Global
11.00% due 10/09/06 $ 500,000 $ 496,250
Republic of Turkey
10.00% due 09/19/07 200,000 181,678
Russian Federation
10.00% due 06/26/07 200,000 54,500
United Mexican States
8.625% due 03/12/08 550,000 514,250
United Mexican States
9.875% due 01/15/07 250,000 248,125
------------
1,494,803
PAPER & FOREST PRODUCTS -- 0.35%
Indah Kiat Finance Mauritius
Ltd.,
10.00% due 07/01/07 250,000 131,562
Indah Kiat International
Finance Co. (Series B),
11.875% due 06/15/02 100,000 70,911
Pindo Deli Finance Mauritius
Ltd.,
10.75% due 10/01/07 300,000 159,750
------------
362,223
TRANSPORTATION -- 0.29%
TFM
10.25% due 06/15/07 150,000 125,625
Transportacion Maritima
10.00% due 11/15/06 200,000 165,500
------------
291,125
------------
TOTAL FOREIGN BONDS
(IDENTIFIED COST $6,935,803) 6,135,126
- --------------------------------------------------------------------
U.S. TREASURY BONDS -- 0.28%
- --------------------------------------------------------------------
U.S. Treasury Bond
6.375% due 08/15/27 250,000 286,746
------------
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $257,857) 286,746
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
U.S. TREASURY NOTES -- 1.78%
- --------------------------------------------------------------------
U.S. Treasury Note
4.50% due 09/30/00 $ 500,000 $ 499,145
U.S. Treasury Note
4.75% due 11/15/08 250,000 251,788
U.S. Treasury Note
5.50% due 02/15/08 1,000,000 1,059,590
------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $1,743,989) 1,810,523
- --------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.15%
- --------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 3.25%
due 01/04/99
Collateral: U.S. Treasury Note
$2,180,000 5.50% due
03/31/00 Value $2,229,050 2,185,000 2,185,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $2,185,000) 2,185,000
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $103,599,260) $100,019,120
OTHER ASSETS LESS LIABILITIES -- 1.81% 1,845,834
------------
NET ASSETS 100% $101,864,954
====================================================================
</TABLE>
(a) Non-income producing security.
(b) In bankruptcy. Portfolio has ceased accrual of interest.
(c) Step bond - coupon increases periodically based upon a predetermined
schedule.
(Wts) Warrants.
See accompanying notes to financial statements.
161
<PAGE> 181
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
OPCAP ADVISORS, INC.
NEW YORK, NEW YORK
Investment Management
OpCap Advisors, a wholly owned subsidiary of Oppenheimer Capital, became
portfolio manager to the Managed Portfolio on October 1, 1994. Oppenheimer
Capital manages approximately $62 billion for institutional clients, and its
normal investment minimum is $20 million.
Investment Objective
The objective of the Managed Portfolio is to seek growth of capital over
time through investment in a portfolio consisting of common stocks, bonds and
cash equivalents, the percentages of which will vary based on the manager's
assessment of relative investment values.
Investment Philosophy
OpCap's investment process seeks to take advantage of opportunities in all
market sectors by shifting the investment mix among stocks, bonds and money
market instruments. The focus of the investment process is to identify quality
companies that are undervalued in the market. The average annual return on
equity of these companies is in excess of the average return on equity of the
companies in the S&P 500 Index, while the average price-to-earnings ratio of
these companies is significantly below the price-to-earnings ratio for those
companies. This combination of high returns on equity and low security
valuations helps preserve capital in down markets and provides opportunity for
investment profit over time.
1998 Performance Review
1998 was not an especially good year for the portfolio. It trailed the S&P
500 Index because of two main factors: the minimal holdings of technology
issues, many of which had large gains in 1998, and the poor performance of
certain of the portfolio's investments, including Citigroup, Inc., and Boeing
Co. Other major holdings of the portfolio, including its three largest
holdings -- McDonald's Corp., Time Warner Inc. and Federal Home Loan Mortgage
Corp. (Freddie Mac) -- rose strongly.
While the portfolio's 1998 results did not live up to expectations, OpCap
remains dedicated to the continued delivery of excellent results over time.
OpCap focuses on individual companies and tries to understand where their
businesses are going over the next several years, not on where the stock market
is heading in the next six months. Simply stated, OpCap wants to invest in
superior businesses that are underpriced in the stock market. A superior
business is one that is extremely well-managed, earns high returns on capital,
has a dominant competitive position to protect those returns and uses the free
cash flow resulting from those returns to create shareholder value, such as
through astute acquisitions or share repurchases.
162
<PAGE> 182
GROWTH OF A $10,000 INVESTMENT
ENTERPRISE ACCUMULATION TRUST MANAGED PORTFOLIO PERFORMANCE GRAPH
<TABLE>
<CAPTION>
MANAGED PORTFOLIO S&P 500 INDEX* LIPPER FLEXIBLE INDEX
<S> <C> <C> <C>
12/31/88 10000 10000 10000
12/31/89 13253 13169 11724
12/31/90 12774 12759 11834
12/31/91 18648 16647 15023
12/31/92 22125 17916 15874
12/31/93 24423 19722 17895
12/31/94 25050 19982 17416
12/31/95 36797 27491 21526
12/31/96 45434 33803 24561
12/31/97 56565 45080 29042
12/31/98 61059 57959 33839
</TABLE>
Enterprise performance numbers do not include variable account
expenses. Remember that historic performance does not predict
future performance. The investment returns and principal value
will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* The S&P 500 Index is an unmanaged index that includes 500
companies that tend to be leaders in important industries
within the U.S. economy. It includes reinvested dividends and
excludes any transactions or holding charges. Lipper Inc. 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. One cannot invest directly in an
index.
Future Investment Strategy
OpCap expects U.S. and international economic growth to slow in 1999, and
the portfolio is positioned to perform well in this environment. The portfolio
owns very few cyclical stocks that would be hurt by economic weakness. New
investments in the fourth quarter were AlliedSignal Inc., a diversified
technology and manufacturing company; News Corporation Ltd., a global media and
communications company; and US West Inc., which provides telecommunications
services in the western and midwestern United States. OpCap believes each should
deliver strong business results in 1999.
US West Inc. exemplifies the portfolio manager's philosophy of owning
quality companies with excellent prospects. It has been investing in new
technologies and businesses, and those investments should begin to pay off with
higher earnings. This includes the company's new wired-wireless service, the
first of its kind in the United States. The service allows customers to have a
single number for their wired and wireless phones.
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.
163
<PAGE> 183
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 82.76% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 3.30%
AlliedSignal Inc. 314,200 $ 13,922,988
Boeing Company 2,341,700 76,397,962
--------------
90,320,950
BANKING -- 9.13%
BankBoston Corporation 1,800,000 70,087,500
M & T Bank Corporation 116,000 60,196,750
Wells Fargo & Company 3,000,000 119,812,500
--------------
250,096,750
BROADCASTING -- 8.18%
News Corporation Ltd. (ADR) 2,400,000 59,250,000
Time Warner Inc. 2,654,800 164,763,525
--------------
224,013,525
CHEMICALS -- 7.15%
Dow Chemical Company 500,000 45,468,750
Du Pont (E. I.) De Nemours &
Company 1,900,000 100,818,750
Hercules Inc. 350,000 9,581,250
Monsanto Company 840,900 39,942,750
--------------
195,811,500
COMPUTER SOFTWARE -- 1.40%
Computer Associates
International Inc. 900,000 38,362,500
CONGLOMERATES -- 4.90%
Minnesota Mining &
Manufacturing Company 1,050,000 74,681,250
Tenneco Inc. 636,500 21,680,781
Textron Inc. 500,000 37,968,750
--------------
134,330,781
CONSUMER PRODUCTS -- 1.50%
Mattel Inc. 1,800,000 41,062,500
DRUGS & MEDICAL
PRODUCTS -- 0.59%
Becton, Dickinson & Company 375,000 16,007,813
ELECTRICAL EQUIPMENT -- 0.07%
Varian Associates Inc. 50,000 1,893,750
FOOD & BEVERAGES & TOBACCO -- 7.09%
Diageo (ADR) 2,351,000 108,733,750
Philip Morris Companies Inc. 1,600,000 85,600,000
--------------
194,333,750
HOTELS & RESTAURANTS -- 6.19%
McDonald's Corporation 2,213,600 169,617,100
INSURANCE -- 6.23%
ACE Ltd. 1,800,000 61,987,500
EXEL Ltd. (Class A) 1,450,000 108,750,000
--------------
170,737,500
MACHINERY -- 1.97%
Caterpillar Inc. 1,173,000 53,958,000
MANUFACTURING -- 2.99%
Avery Dennison Corporation 50,000 2,253,125
ITT Industries Inc. 2,000,000 79,500,000
--------------
81,753,125
MISC. FINANCIAL
SERVICES -- 10.16%
Citigroup Inc. 2,562,500 126,843,750
Freddie Mac 2,352,000 151,557,000
--------------
278,400,750
PAPER & FOREST PRODUCTS -- 1.92%
Champion International
Corporation 1,300,000 52,650,000
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
PRINTING & PUBLISHING -- 2.32%
Donnelley R.R. & Sons Company 1,400,000 $ 61,337,500
Reed International (ADR) 66,600 2,097,900
--------------
63,435,400
REAL ESTATE -- 0.80%
Security Capital Group Inc.
(Class A)(a) 33,156 21,882,718
TELECOMMUNICATIONS -- 5.02%
Sprint Corporation 875,000 73,609,375
Tele-Communications TCI
Ventures Group A(a) 178,300 4,201,194
U S West Inc. 924,400 59,739,350
--------------
137,549,919
TRANSPORTATION -- 1.85%
UAL Corporation(a) 850,000 50,734,375
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,712,616,441) 2,266,952,706
- ----------------------------------------------------------------------
U.S. TREASURY BONDS -- 2.29%
- ----------------------------------------------------------------------
U.S. Treasury Bond 5.50% due
08/15/28 $50,000,000 52,375,000
U.S. Treasury Bond 6.25% due
08/15/23 9,300,000 10,403,910
--------------
TOTAL U.S. TREASURY BONDS
(IDENTIFIED COST $62,079,732 ) 62,778,910
- ----------------------------------------------------------------------
U.S. TREASURY NOTES -- 2.10%
- ----------------------------------------------------------------------
U.S. Treasury Note 5.625% due
05/15/08 50,000,000 53,357,500
U.S. Treasury Note 7.875% due
08/15/01 3,952,500 4,264,590
--------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $57,390,758 ) 57,622,090
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 11.29%
- ----------------------------------------------------------------------
American Express Credit
Corporation, 4.90% due
02/01/99 50,000,000 49,789,028
Chevron Oil Finance Company
5.30% due 01/11/99 25,000,000 24,963,195
Deere (John) Capital
Corporation 5.28% due
01/06/99 50,000,000 49,963,333
Ford Motor Credit Company
5.17% due 01/11/99 50,000,000 49,928,194
General Electric Capital
Corporation, 5.31% due
01/20/99 30,000,000 29,915,925
Household Finance Corporation
5.25% due 01/25/99 50,000,000 49,825,000
IBM Credit Corporation 5.17%
due 01/19/99 25,000,000 24,935,375
Norwest Corporation
5.46% due 01/20/99 30,000,000 29,913,550
--------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $309,233,600) 309,233,600
- ----------------------------------------------------------------------
</TABLE>
164
<PAGE> 184
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
Repurchase Agreement -- 1.54%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 01/04/99 Collateral:
U.S. Treasury Note
$41,745,000 5.38% due
01/31/00 Value $42,945,169 $42,100,000 $ 42,100,000
--------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $42,100,000) 42,100,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $2,183,420,531) $2,738,687,306
OTHER ASSETS LESS LIABILITIES -- 0.02% 617,602
--------------
NET ASSETS 100% $2,739,304,908
======================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See accompanying notes to financial statements.
165
<PAGE> 185
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
GROWTH AND
GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------- --------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments, at value....................................... $1,428,708 $350,543 $621,435,949
Foreign currency at value (cost -- $1,066,771).............. -- -- --
Receivable for investments sold............................. -- -- 2,690,127
Receivable for fund shares sold............................. 181,185 30,227 1,274,663
Dividends receivable........................................ 443 154 549,261
Interest receivable......................................... -- -- 2,535
Due from investment adviser................................. 15,176 15,350 --
Forward currency contracts receivable, (net)................ -- -- --
Cash and other assets....................................... 779,759 196,943 10,646
---------- -------- ------------
Total assets...................................... 2,405,271 593,217 625,963,181
---------- -------- ------------
LIABILITIES:
Payable for investments purchased........................... 450,241 44,443 3,940,809
Payable for fund shares redeemed............................ 11 -- 150,725
Investment advisory fees payable............................ 471 193 399,598
Accrued expenses and other liabilities...................... 11,093 11,093 134,393
---------- -------- ------------
Total liabilities................................. 461,816 55,729 4,625,525
---------- -------- ------------
NET ASSETS................................... $1,943,455 $537,488 $621,337,656
========== ======== ============
NET ASSETS:
Paid-in capital............................................. $1,895,379 $525,897 $436,161,098
Accumulated undistributed net investment income (loss)...... -- -- 8,195,597
Accumulated undistributed net realized gain (loss) on
investments and futures................................... (98) 222 43,605,919
Net unrealized appreciation (depreciation) on investments
and translation of foreign currency denominated amounts... 48,174 11,369 133,375,042
---------- -------- ------------
NET ASSETS................................... $1,943,455 $537,488 $621,337,656
========== ======== ============
Fund shares outstanding..................................... 369,068 105,213 16,876,144
---------- -------- ------------
Net asset value per share................................... $5.27 $5.11 $36.82
========== ======== ============
INVESTMENTS AT COST......................................... $1,380,534 $339,174 $488,060,907
</TABLE>
See accompanying notes to financial statements.
166
<PAGE> 186
<TABLE>
<CAPTION>
CAPITAL SMALL COMPANY SMALL COMPANY INTERNATIONAL HIGH-YIELD
EQUITY INCOME APPRECIATION GROWTH VALUE GROWTH BOND MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ------------- ------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$370,256 $309,478 $371,183 $407,328,459 $90,811,808 $100,019,120 $2,738,687,306
-- -- -- -- 1,073,739 -- --
-- -- 4,281 -- 20,512 -- 2,237,452
38,390 16,975 24,712 634,652 69,673 53,170 1,949,191
204 85 35 193,732 180,921 -- 2,027,500
-- -- -- 688 -- 2,004,943 1,745,968
15,357 15,293 15,324 -- -- -- --
-- -- -- -- 24,013 -- --
192,435 223,161 101,539 6,527 7,638 5,483 38,989
-------- -------- -------- ------------ ----------- ------------ --------------
616,642 564,992 517,074 408,164,058 92,188,304 102,082,716 2,746,686,406
-------- -------- -------- ------------ ----------- ------------ --------------
140,419 42,455 36,832 809,102 73,244 -- 4,029,575
-- 4 7 164,660 161,423 129,076 1,121,955
176 184 258 261,720 63,858 51,171 1,648,533
11,093 11,093 11,093 127,457 95,563 37,515 581,435
-------- -------- -------- ------------ ----------- ------------ --------------
151,688 53,736 48,190 1,362,939 394,088 217,762 7,381,498
-------- -------- -------- ------------ ----------- ------------ --------------
$464,954 $511,256 $468,884 $406,801,119 $91,794,216 $101,864,954 $2,739,304,908
======== ======== ======== ============ =========== ============ ==============
$458,455 $473,316 $436,486 $309,669,798 $79,987,666 $104,373,784 $1,750,711,005
127 -- -- 2,269,065 893,147 -- 46,304,556
-- (228) (853) 26,447,462 311,385 1,071,310 387,022,572
6,372 38,168 33,251 68,414,794 10,602,018 (3,580,140) 555,266,775
-------- -------- -------- ------------ ----------- ------------ --------------
$464,954 $511,256 $468,884 $406,801,119 $91,794,216 $101,864,954 $2,739,304,908
======== ======== ======== ============ =========== ============ ==============
91,297 91,747 85,863 14,868,174 13,620,192 18,966,191 67,529,015
-------- -------- -------- ------------ ----------- ------------ --------------
$5.09 $5.57 $5.46 $27.36 $6.74 $5.37 $40.56
======== ======== ========= ============ =========== ============ ==============
$363,884 $271,310 $337,932 $338,913,665 $80,246,533 $103,599,260 $2,183,420,531
</TABLE>
See accompanying notes to financial statements.
167
<PAGE> 187
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
GROWTH
GROWTH AND INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- -----------
12/1/98- 12/1/98-
12/31/98 12/31/98
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............................................. $ 453 $ 154 $ 8,187,846*
Interest............................................... 110 -- 4,792,576
-------- -------- -----------
Total income...................................... 563 154 12,980,422
-------- -------- -----------
EXPENSES:
Investment advisory fees............................... 471 193 4,523,391
Custodian and fund accounting fees..................... 3,000 3,000 94,088
Reports and notices to shareholders.................... 100 100 102,352
Trustees' fees and expenses............................ 1,500 1,500 19,547
Audit and legal fees................................... 10,727 10,727 23,630
Miscellaneous.......................................... 100 100 21,720
-------- -------- -----------
Total expenses.................................... 15,898 15,620 4,784,728
Less: Expense reimbursement.......................... (15,176) (15,350) --
-------- -------- -----------
Total expenses, net of expense reimbursement......... 722 270 4,784,728
-------- -------- -----------
NET INVESTMENT INCOME (LOSS).................... (159) (116) 8,195,694
-------- -------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET:
Net realized gain (loss) on investments................ (98) 338 43,607,008
Net realized gain (loss) on foreign currency
transactions.......................................... -- -- --
-------- -------- -----------
Net realized gain (loss) on investments................ (98) 338 43,607,008
Net change in unrealized gain (loss) on investments and
translation of foreign currencies denominated
amounts............................................... 48,174 11,369 (4,143,581)
-------- -------- -----------
Net realized and unrealized gain (loss) on
investments.................................... 48,076 11,707 39,463,427
-------- -------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS..................................... $ 47,917 $ 11,591 $47,659,121
======== ======== ===========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
* Net of foreign taxes withheld of $45,718, $232,521 and $58,025, respectively.
168
<PAGE> 188
<TABLE>
<CAPTION>
EQUITY CAPITAL SMALL COMPANY SMALL COMPANY INTERNATIONAL HIGH-YIELD
INCOME APPRECIATION GROWTH VALUE GROWTH BOND MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ------------ ------------- ------------- ------------- ----------- -------------
12/1/98- 12/1/98- 12/1/98-
12/31/98 12/31/98 12/31/98
<S> <C> <C> <C> <C> <C> <C> <C>
$ 373 $ 85 $ 35 $ 4,494,858 $ 1,757,194* $ 22,500 $ 46,489,051*
-- -- -- 1,199,190 184,133 7,715,490 21,036,122
-------- ----------- -------- ----------- ----------- ----------- -------------
373 85 35 5,694,048 1,941,327 7,737,990 67,525,173
-------- ----------- -------- ----------- ----------- ----------- -------------
176 184 259 3,204,761 730,659 520,951 20,174,424
3,000 3,000 3,000 94,321 272,773 58,521 372,890
100 100 100 75,568 13,138 16,884 428,526
1,500 1,500 1,500 17,073 13,766 13,458 51,737
10,727 10,727 10,727 18,736 11,540 11,502 77,660
100 100 100 14,463 3,545 2,814 115,349
-------- ----------- -------- ----------- ----------- ----------- -------------
15,603 15,611 15,686 3,424,922 1,045,421 624,130 21,220,586
(15,357) (15,292) (15,324) -- -- -- --
-------- ----------- -------- ----------- ----------- ----------- -------------
246 319 362 3,424,922 1,045,421 624,130 21,220,586
-------- ----------- -------- ----------- ----------- ----------- -------------
127 (234) (327) 2,269,126 895,906 7,113,860 46,304,587
-------- ----------- -------- ----------- ----------- ----------- -------------
-- (227) (853) 25,594,861 4,537,009 1,083,292 393,346,265
-- -- -- -- (3,674,765) -- --
-------- ----------- -------- ----------- ----------- ----------- -------------
-- (227) (853) 25,594,861 862,244 1,083,292 393,346,265
6,372 38,168 33,251 1,607,587 8,976,597 (5,550,240) (253,453,784)
-------- ----------- -------- ----------- ----------- ----------- -------------
6,372 37,941 32,398 27,202,448 9,838,841 (4,466,948) 139,892,481
-------- ----------- -------- ----------- ----------- ----------- -------------
$ 6,499 $ 37,707 $ 32,071 $29,471,574 $10,734,747 $ 2,646,912 $ 186,197,068
======== =========== ======== =========== =========== =========== =============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
169
<PAGE> 189
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
GROWTH AND
GROWTH PORTFOLIO INCOME PORTFOLIO
----------------- -----------------
FOR THE PERIOD FOR THE PERIOD EQUITY PORTFOLIO
DECEMBER 1, 1998 DECEMBER 1, 1998 --------------------------------------
THROUGH THROUGH YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1997
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (159) $ (116) $ 8,195,694 $ 5,906,243
Net realized gain (loss) on
investments........................ (98) 338 43,607,008 21,596,989
Net realized loss on futures.......... -- -- -- --
Net change in unrealized gain (loss)
on investments..................... 48,174 11,369 (4,143,581) 66,581,351
---------- -------- ------------- ------------
Net increase in net assets
resulting from operations........ 47,917 11,591 47,659,121 94,084,583
---------- -------- ------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income................. -- -- (5,906,264) (4,530,879)
Net realized gains.................... -- -- (21,596,997) (12,619,248)
---------- -------- ------------- ------------
Total dividends and distributions
to shareholders............... -- -- (27,503,261) (17,150,127)
---------- -------- ------------- ------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales............... 1,906,210 525,993 259,368,662 194,805,120
Reinvestment of dividends and
distributions...................... -- -- 27,503,261 17,150,127
Cost of shares redeemed............... (10,672) (96) (203,493,446) (85,993,316)
---------- -------- ------------- ------------
Net increase in net assets from
fund share transactions.......... 1,895,538 525,897 83,378,477 125,961,931
---------- -------- ------------- ------------
Total increase in net assets..... 1,943,455 537,488 103,534,337 202,896,387
NET ASSETS:
Beginning of year..................... -- -- 517,803,319 314,906,932
---------- -------- ------------- ------------
End of year........................... $1,943,455 $537,488 $ 621,337,656 $517,803,319
========== ======== ============= ============
SHARES ISSUED AND REDEEMED:
Issued................................ 371,167 105,232 7,038,795 6,024,088
Issued in reinvestment of dividends
and distributions.................. -- -- 749,816 488,747
Redeemed.............................. (2,099) (19) (5,670,766) (2,666,560)
---------- -------- ------------- ------------
Net increase....................... 369,068 105,213 2,117,845 3,846,275
========== ======== ============= ============
</TABLE>
See accompanying notes to financial statements.
170
<PAGE> 190
<TABLE>
<CAPTION>
EQUITY INCOME CAPITAL APPRECIATION SMALL COMPANY
PORTFOLIO PORTFOLIO GROWTH PORTFOLIO
----------------- -------------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD SMALL COMPANY VALUE PORTFOLIO
DECEMBER 1, 1998 DECEMBER 1, 1998 DECEMBER 1, 1998 --------------------------------------
THROUGH THROUGH THROUGH YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1997
----------------- -------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 127 $ (234) $ (327) $ 2,269,126 $ 564,870
-- (227) (853) 25,594,861 25,509,856
-- -- -- -- --
6,372 38,168 33,251 1,607,587 68,857,605
-------- -------- -------- ------------- ------------
6,499 37,707 32,071 29,471,574 94,932,331
-------- -------- -------- ------------- ------------
-- -- -- (1,050,835) (1,934,367)
-- -- -- (24,299,778) (29,120,607)
-------- -------- -------- ------------- ------------
-- -- -- (25,350,613) (31,054,974)
-------- -------- -------- ------------- ------------
458,517 473,649 436,953 176,919,909 125,153,914
-- -- -- 25,350,613 31,054,974
(62) (100) (140) (164,856,185) (47,524,243)
-------- -------- -------- ------------- ------------
458,455 473,549 436,813 37,414,337 108,684,645
-------- -------- -------- ------------- ------------
464,954 511,256 468,884 41,535,298 172,562,002
-- -- -- 365,265,821 192,703,819
-------- -------- -------- ------------- ------------
$464,954 $511,256 $468,884 $ 406,801,119 $365,265,821
======== ======== ======== ============= ============
91,309 91,765 85,890 6,367,246 4,898,620
-- -- -- 967,950 1,163,108
(12) (18) (27) (6,146,963) (1,911,458)
-------- -------- -------- ------------- ------------
91,297 91,747 85,863 1,188,233 4,150,270
======== ======== ======== ============= ============
</TABLE>
See accompanying notes to financial statements.
171
<PAGE> 191
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH PORTFOLIO HIGH-YIELD BOND PORTFOLIO MANAGED 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,
1998 1997 1998 1997 1998 1997
-------------- -------------- ------------ ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).............. $ 895,906 $ 952,492 $ 7,113,860 $ 4,219,431 $ 46,304,587 $ 26,677,682
Net realized gain
(loss) on
investments......... 862,244 3,093,961 1,083,292 1,426,942 393,346,265 183,271,808
Net realized loss on
futures............. -- -- -- (40,672) -- --
Net change in
unrealized gain
(loss) on
investments......... 8,976,597 (1,712,233) (5,550,240) 876,263 (253,453,784) 286,998,102
------------ ------------ ------------ ------------ -------------- --------------
Net increase in net
assets resulting
from operations... 10,734,747 2,334,220 2,646,912 6,481,964 186,197,068 496,947,592
------------ ------------ ------------ ------------ -------------- --------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income.............. (956,997) (469,566) (7,113,860) (4,578,453) (26,677,507) (34,358,125)
Net realized gains..... (3,458,658) (1,839,878) (1,380,937) -- (189,572,424) (86,729,089)
------------ ------------ ------------ ------------ -------------- --------------
Total dividends
and
distributions
to
shareholders... (4,415,655) (2,309,444) (8,494,797) (4,578,453) (216,249,931) (121,087,214)
------------ ------------ ------------ ------------ -------------- --------------
FUND SHARE TRANSACTIONS:
Net proceeds from
sales............... 33,682,098 44,114,615 53,781,245 37,450,856 828,656,136 764,890,598
Reinvestment of
dividends and
distributions....... 4,415,655 2,309,444 8,494,797 4,578,453 216,249,931 121,087,214
Cost of shares
redeemed............ (30,770,132) (21,069,633) (22,927,376) (9,979,756) (948,480,342) (524,249,625)
------------ ------------ ------------ ------------ -------------- --------------
Net increase in net
assets from fund
share
transactions........ 7,327,621 25,354,426 39,348,666 32,049,553 96,425,725 361,728,187
------------ ------------ ------------ ------------ -------------- --------------
Total increase in
net assets..... 13,646,713 25,379,202 33,500,781 33,953,064 66,372,862 737,588,565
NET ASSETS:
Beginning of year...... 78,147,503 52,768,301 68,364,173 34,411,109 2,672,932,046 1,935,343,481
------------ ------------ ------------ ------------ -------------- --------------
End of year............ $ 91,794,216 $ 78,147,503 $101,864,954 $ 68,364,173 $2,739,304,908 $2,672,932,046
============ ============ ============ ============ ============== ==============
SHARES ISSUED AND
REDEEMED:
Issued................. 5,053,178 6,817,722 9,618,868 6,681,479 19,612,770 20,029,862
Issued in reinvestment
of dividends and
distributions....... 680,379 373,696 1,543,662 813,628 5,331,607 2,969,279
Redeemed............... (4,760,079) (3,259,958) (4,163,250) (1,778,183) (22,958,015) (13,856,866)
------------ ------------ ------------ ------------ -------------- --------------
Net increase........ 973,478 3,931,460 6,999,280 5,716,924 1,986,362 9,142,275
============ ============ ============ ============ ============== ==============
</TABLE>
See accompanying notes to financial statements.
172
<PAGE> 192
ENTERPRISE ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
GROWTH AND
GROWTH PORTFOLIO INCOME PORTFOLIO
----------------- -----------------
FOR THE PERIOD FOR THE PERIOD
12/01/98 THROUGH 12/01/98 THROUGH
12/31/98 12/31/98
----------------- -----------------
<S> <C> <C>
Net asset value, beginning of year.......................... $ 5.00 $ 5.00
------- -------
Income from investment operations:
Net investment income (loss).............................. -- --
Net realized and unrealized gain (loss) on investments.... 0.27 0.11
------- -------
Total from investment operations.................. 0.27 0.11
------- -------
Less dividends and distributions:
Dividends to shareholders from net investment income...... -- --
Distribution to shareholders from net capital gains....... -- --
------- -------
Total dividends and distributions................. -- --
------- -------
Net asset value, end of year................................ $ 5.27 $ 5.11
======= =======
Total return...................................... 5.40%(B) 2.20%(B)
------- -------
Net assets, end of year (000)............................... $ 1,943 $ 537
------- -------
Ratio of net operating expenses to average net assets....... 1.15%(A) 1.05%(A)
------- -------
Ratio of net operating expenses (excluding waivers) to
average net assets........................................ 25.33%(A) 60.68%(A)
------- -------
Ratio of net investment income (loss) to average net
assets.................................................... (0.25)%(A) (0.45)%(A)
------- -------
Ratio of net investment income (loss) (excluding waivers) to
average net assets........................................ (24.43)%(A) (60.08)%(A)
------- -------
Portfolio turnover.......................................... 1% 9%
------- -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(A) Annualized.
(B) Not annualized.
173
<PAGE> 193
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year......................... $ 35.09 $ 28.86 $ 23.35 $ 18.14 $ 17.95
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss)............................. 0.46 0.30 0.37 0.33 0.28
Net realized and unrealized gain (loss) on investments... 3.00 7.13 5.52 6.38 0.41
-------- -------- -------- -------- --------
Total from investment operations................. 3.46 7.43 5.89 6.71 0.69
-------- -------- -------- -------- --------
Less dividends and distributions:
Dividends to shareholders from net investment income..... (0.37) (0.32) (0.09) (0.49) (0.18)
Distribution to shareholders from net capital gains...... (1.36) (0.88) (0.29) (1.01) (0.32)
-------- -------- -------- -------- --------
Total dividends and distributions................ (1.73) (1.20) (0.38) (1.50) (0.50)
-------- -------- -------- -------- --------
Net asset value, end of year............................... $ 36.82 $ 35.09 $ 28.86 $ 23.35 $ 18.14
======== ======== ======== ======== ========
Total return..................................... 9.90% 25.76% 25.22% 38.44% 3.87%
-------- -------- -------- -------- --------
Net assets, end of year (000).............................. $621,338 $517,803 $314,907 $167,963 $ 88,583
-------- -------- -------- -------- --------
Ratio of net operating expenses to average net assets...... 0.83% 0.84% 0.81% 0.69% 0.67%
-------- -------- -------- -------- --------
Ratio of net operating expenses (excluding waivers) to
average net assets....................................... 0.83% 0.84% 0.81% 0.72% 0.69%
-------- -------- -------- -------- --------
Ratio of net investment income (loss) to average net
assets................................................... 1.42% 1.42% 1.94% 1.94% 1.81%
-------- -------- -------- -------- --------
Ratio of net investment income (loss) (excluding waivers)
to average net assets.................................... 1.42% 1.42% 1.94% 1.91% 1.79%
-------- -------- -------- -------- --------
Portfolio turnover......................................... 30% 17% 30% 29% 38%
-------- -------- -------- -------- --------
</TABLE>
See accompanying notes to financial statements.
174
<PAGE> 194
ENTERPRISE ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CAPITAL SMALL COMPANY
EQUITY INCOME APPRECIATION GROWTH PORTFOLIO
---------------- ---------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
12/01/98 THROUGH 12/01/98 THROUGH 12/01/98 THROUGH
12/31/98 12/31/98 12/31/98
---------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of year.................. $ 5.00 $ 5.00 $ 5.00
Income from investment operations:
Net investment income (loss)...................... -- -- --
Net realized and unrealized gain (loss) on
investments.................................... 0.09 0.57 0.46
------- ------- -------
Total from investment operations.......... 0.09 0.57 0.46
------- ------- -------
Less dividends and distributions:
Dividends to shareholders from net investment
income......................................... -- -- --
Distribution to shareholders from net capital
gains.......................................... -- -- --
------- ------- -------
Total dividends and distributions......... -- -- --
------- ------- -------
Net asset value, end of year........................ $ 5.09 $ 5.57 $ 5.46
======= ======= =======
Total return.............................. 1.80%(B) 11.40%(B) 9.20%(B)
------- ------- -------
Net assets, end of year (000)....................... $ 465 $ 511 $ 469
------- ------- -------
Ratio of net operating expenses to average net
assets............................................ 1.05%(A) 1.30%(A) 1.40%(A)
------- ------- -------
Ratio of net operating expenses (excluding waivers)
to average net assets............................. 66.67%(A) 63.71%(A) 60.67%(A)
------- ------- -------
Ratio of net investment income (loss) to average net
assets............................................ 0.54%(A) (0.95)%(A) (1.26)%(A)
------- ------- -------
Ratio of net investment income (loss) (excluding
waivers) to average net assets.................... (65.07)%(A) (63.36)%(A) (60.54)%(A)
------- ------- -------
Portfolio turnover.................................. 0% 1% 4%
------- ------- -------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(A) Annualized.
(B) Not annualized.
175
<PAGE> 195
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year..................... $ 26.70 $ 20.22 $ 18.48 $ 17.56 $ 18.62
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss)(C)...................... 0.16 0.05 0.25 0.32 0.19
Net realized and unrealized gain (loss) on
investments....................................... 2.33 8.91 1.82 1.75 (0.16)
-------- -------- -------- -------- --------
Total from investment operations............. 2.49 8.96 2.07 2.07 0.03
-------- -------- -------- -------- --------
Less dividends and distributions:
Dividends to shareholders from net investment
income............................................ (0.08) (0.15) (0.12) (0.40) (0.10)
Distribution to shareholders from net capital
gains............................................. (1.75) (2.33) (0.21) (0.75) (0.99)
-------- -------- -------- -------- --------
Total dividends and distributions............ (1.83) (2.48) (0.33) (1.15) (1.09)
-------- -------- -------- -------- --------
Net asset value, end of year........................... $ 27.36 $ 26.70 $ 20.22 $ 18.48 $ 17.56
======== ======== ======== ======== ========
Total return................................. 9.61% 44.32% 11.21% 12.28% 0.02%
-------- -------- -------- -------- --------
Net assets, end of year (000).......................... $406,801 $365,266 $192,704 $166,061 $144,880
-------- -------- -------- -------- --------
Ratio of net operating expenses to average net
assets............................................... 0.85% 0.86% 0.84% 0.69% 0.66%
-------- -------- -------- -------- --------
Ratio of net operating expenses (excluding waivers) to
average net assets................................... 0.85% 0.86% 0.84% 0.72% 0.67%
-------- -------- -------- -------- --------
Ratio of net investment income (loss) to average net
assets............................................... 0.56% 0.21% 1.35% 1.86% 1.30%
-------- -------- -------- -------- --------
Ratio of net investment income (loss) (excluding
waivers) to average net assets....................... 0.56% 0.21% 1.35% 1.83% 1.29%
-------- -------- -------- -------- --------
Portfolio turnover..................................... 37% 58% 137% 70% 58%
-------- -------- -------- -------- --------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(C) For 1997, this calculation was based on average monthly shares outstanding.
176
<PAGE> 196
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-
1998 1997 1996 1995 DECEMBER 31, 1994
------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 6.18 $ 6.05 $ 5.39 $ 4.96 $ 5.00
------- ------- ------- ------- ------
Income from investment operations:
Net investment income (loss)........... 0.06 0.06 0.05 0.04 --
Net realized and unrealized gain (loss)
on investments....................... 0.84 0.26 0.63 0.67 (0.04)
------- ------- ------- ------- ------
Total from investment
operations...................... 0.90 0.32 0.68 0.71 (0.04)
------- ------- ------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net
investment income.................... (0.07) (0.04) -- (0.04) --
Distribution to shareholders from net
capital gains........................ (0.27) (0.15) (0.02) (0.24) --
------- ------- ------- ------- ------
Total dividends and
distributions................... (0.34) (0.19) (0.02) (0.28) --
------- ------- ------- ------- ------
Net asset value, end of year................ $ 6.74 $ 6.18 $ 6.05 $ 5.39 $ 4.96
======= ======= ======= ======= ======
Total return...................... 14.83% 5.26% 12.65% 14.64% (0.80)%(B)
------- ------- ------- ------- ------
Net assets, end of year (000)............... $91,794 $78,148 $52,768 $18,598 $3,247
------- ------- ------- ------- ------
Ratio of net operating expenses to average
net assets................................ 1.22% 1.19% 1.38% 1.55% 1.55%(A)
------- ------- ------- ------- ------
Ratio of net operating expenses (excluding
waivers) to average net assets............ 1.22% 1.19% 1.38% 2.21% 8.85%(A)
------- ------- ------- ------- ------
Ratio of net investment income (loss) to
average net assets........................ 1.04% 1.34% 1.32% 1.17% 0.80%(A)
------- ------- ------- ------- ------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets.................................... 1.04% 1.34% 1.32% 0.51% (6.34)%(A)
------- ------- ------- ------- ------
Portfolio turnover.......................... 55% 28% 21% 27% 0%
------- ------- ------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(A) Annualized.
(B) Not annualized.
177
<PAGE> 197
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-
1998 1997 1996 1995 DECEMBER 31, 1994
-------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............. $ 5.71 $ 5.51 $ 5.31 $ 4.98 $ 5.00
-------- ------- ------- ------- ------
Income from investment operations:
Net investment income (loss).............. 0.46 0.51 0.45 0.45 0.04
Net realized and unrealized gain (loss) on
investments............................. (0.26) 0.20 0.21 0.35 (0.01)
-------- ------- ------- ------- ------
Total from investment operations..... 0.20 0.71 0.66 0.80 0.03
-------- ------- ------- ------- ------
Less dividends and distributions:
Dividends to shareholders from net
investment income....................... (0.46) (0.51) (0.45) (0.45) (0.05)
Distribution to shareholders from net
capital gains........................... (0.08) -- (0.01) (0.02) --
-------- ------- ------- ------- ------
Total dividends and distributions.... (0.54) (0.51) (0.46) (0.47) (0.05)
-------- ------- ------- ------- ------
Net asset value, end of year................... $ 5.37 $ 5.71 $ 5.51 $ 5.31 $ 4.98
======== ======= ======= ======= ======
Total return......................... 3.60% 13.38% 12.93% 16.59% 0.50%(B)
-------- ------- ------- ------- ------
Net assets, end of year (000).................. $101,865 $68,364 $34,411 $15,223 $1,421
-------- ------- ------- ------- ------
Ratio of net operating expenses to average net
assets....................................... 0.72% 0.77% 0.85% 0.85% 0.85%(A)
-------- ------- ------- ------- ------
Ratio of net operating expenses (excluding
waivers) to average net assets............... 0.72% 0.77% 0.94% 1.59% 7.80%(A)
-------- ------- ------- ------- ------
Ratio of net investment income (loss) to
average net assets........................... 8.19% 8.47% 8.57% 8.51% 7.84%(A)
-------- ------- ------- ------- ------
Ratio of net investment income (loss)
(excluding waivers) to average net assets.... 8.19% 8.47% 8.48% 7.77% 0.80%(A)
-------- ------- ------- ------- ------
Portfolio turnover............................. 109% 175% 175% 115% 0%
-------- ------- ------- ------- ------
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
(A) Annualized.
(B) Not annualized.
178
<PAGE> 198
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............... $ 40.78 $ 34.31 $ 28.06 $ 20.82 $ 21.35
---------- ---------- ---------- ---------- --------
Income from investment operations:
Net investment income (loss)................... 0.71 0.35 0.59 0.40 0.40
Net realized and unrealized gain (loss) on
investments................................. 2.53 8.06 5.99 8.97 0.15
---------- ---------- ---------- ---------- --------
Total from investment operations....... 3.24 8.41 6.58 9.37 0.55
---------- ---------- ---------- ---------- --------
Less dividends and distributions:
Dividends to shareholders from net investment
income...................................... (0.43) (0.55) (0.06) (0.75) (0.46)
Distribution to shareholders from net capital
gains....................................... (3.03) (1.39) (0.27) (1.38) (0.62)
---------- ---------- ---------- ---------- --------
Total dividends and distributions...... (3.46) (1.94) (0.33) (2.13) (1.08)
---------- ---------- ---------- ---------- --------
Net asset value, end of year..................... $ 40.56 $ 40.78 $ 34.31 $ 28.06 $ 20.82
========== ========== ========== ========== ========
Total return........................... 7.95% 24.50% 23.47% 46.89% 2.57%
---------- ---------- ---------- ---------- --------
Net assets, end of year (000).................... $2,739,305 $2,672,932 $1,935,343 $1,264,718 $689,252
---------- ---------- ---------- ---------- --------
Ratio of net operating expenses to average net
assets......................................... 0.76% 0.76% 0.74% 0.67% 0.64%
---------- ---------- ---------- ---------- --------
Ratio of net operating expenses (excluding
waivers) to average net assets................. 0.76% 0.76% 0.74% 0.67% 0.64%
---------- ---------- ---------- ---------- --------
Ratio of net investment income (loss) to average
net assets..................................... 1.66% 1.14% 2.16% 1.80% 2.23%
---------- ---------- ---------- ---------- --------
Ratio of net investment income (loss) (excluding
waivers) to average net assets................. 1.66% 1.14% 2.16% 1.80% 2.23%
---------- ---------- ---------- ---------- --------
Portfolio turnover............................... 46% 32% 29% 31% 33%
---------- ---------- ---------- ---------- --------
</TABLE>
See accompanying notes to financial statements.
179
<PAGE> 199
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
1. ORGANIZATION
Enterprise Accumulation Trust (the "Trust") was organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Trust is
authorized to issue an unlimited number of shares of beneficial interest at $.01
par value for the following portfolios: Growth Portfolio, Growth and Income
Portfolio, Equity Portfolio, Equity Income Portfolio, Capital Appreciation
Portfolio, Small Company Growth Portfolio, Small Company Value Portfolio,
International Growth Portfolio, High-Yield Bond Portfolio and Managed Portfolio.
Prior to May 1, 1998 the Small Company Value Portfolio was known as the Small
Cap Portfolio.
The Trust serves as an investment vehicle for MONYMaster and MONY Custom
Master, flexible payment variable annuity policy, and MONY Equity Master and
MONY Custom Equity Master, flexible premium variable universal life insurance
policies, issued by MONY Life of America ("MLOA") and MONY Life Insurance
Company, a wholly-owned subsidiary of MLOA. 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 -- Growth Portfolio, Growth and Income Portfolio,
Equity Portfolio, Equity Income Portfolio, Capital Appreciation Portfolio, Small
Company Growth Portfolio, Small Company Value Portfolio, International Growth
Portfolio, High-Yield Bond Portfolio and Managed Portfolio: 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. Repurchase agreements could involve certain risks in the event
of default or insolvency of the selling institution, including costs of
disposing of securities held as collateral and any loss resulting from delays or
restrictions upon the Portfolio's ability to dispose of securities.
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. There were no open futures contracts held in any of the Portfolios at
December 31, 1998.
180
<PAGE> 200
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
Foreign Currency Translation -- Securities, other assets and liabilities of
the International Growth Portfolio whose values are initially expressed in
foreign currencies are translated to U.S. dollars at the bid price of such
currency against U.S. dollars last quoted by a major bank. Receivables and
payables for 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 International Growth Portfolio 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. Realized gains and losses from investment
transactions are determined on the basis of identical cost and realized gains
and losses from currency transactions are determined on the basis of average
cost. Dividend income received and distributions to shareholders are recognized
on the ex-dividend date, and interest income is recognized on the accrual basis.
Discounts or premiums on debt securities purchased are accreted or amortized to
interest income over the lives of the respective securities.
Expenses -- Each portfolio bears expenses incurred specifically on its
behalf as well as a portion of the common expenses of the Trust.
Federal Income Taxes -- No provision for Federal income or excise taxes is
required because the trust intends to continue to qualify as a regulated
investment company and distribute all of its taxable income to shareholders.
Use of Estimates in Preparation of Financial Statements -- Preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Dividends and Distributions -- Growth Portfolio, Growth and Income
Portfolio, Equity Portfolio, Equity Income Portfolio, Capital Appreciation
Portfolio, Small Company Growth Portfolio, Small Company Value Portfolio,
International Growth Portfolio and Managed Portfolio: 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. TRANSACTIONS WITH AFFILIATES
The investment advisory fee is payable monthly to Enterprise Capital
Management, Inc. ("Enterprise Capital"), a wholly-owned subsidiary of MONY Life
Insurance Company, and is computed as a percentage of each Portfolio's net
assets as of the close of business each day and is as follows: for each of the
Equity, Small Company Value, and Managed Portfolios, .80% for the first $400
million, .75% for the next $400 million, and .70% for net assets over $800
million, 1.00% for the Small Company Growth Portfolio, 0.85% for the
International Growth Portfolio, 0.75% for each of the Growth, Capital
Appreciation, Growth and Income, and Equity Income Portfolios and 0.60% 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: Growth -- 1.15%, Growth and Income -- 1.05%, Equity -- 1.15%, Equity
Income -- 1.05%, Capital Appreciation -- 1.30%, Small Company Growth -- 1.40%,
Small Company Value -- 1.30%, International Growth -- 1.55%, High-Yield
Bond -- .85% and Managed -- 1.30%.
Enterprise Capital is a wholly-owned subsidiary of MONY Life Insurance
Company, which is wholly-owned by The MONY Group Inc. The MONY Group Inc. and
its subsidiaries and affiliates had the following investments in the Trust as of
December 31, 1998: Growth -- $263,500, Growth and Income -- $255,500, Capital
Appreciation -- $278,500, Small Company Growth -- $273,000, and Equity
Income -- $254,500.
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 respective
Portfolio Manager. 1740 Advisers, Inc., a wholly-owned subsidiary of MONY Life
Insurance Company, is the Fund Manager for the Equity Income Fund. For the year
ended December 31, 1998, ECM incurred subadvisory fees payable to 1740 Advisers,
Inc. related to the Equity Income Fund of $70, with a related payable balance of
$70 as of December 31, 1998.
181
<PAGE> 201
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
4. FINANCIAL INSTRUMENTS
As part of its investment program, the International Growth Portfolio
utilizes forward currency exchange contracts to manage exposure to currency
fluctuations and hedge against adverse changes in connection with purchases and
sales of securities. The Portfolio enters into forward contracts only for
hedging purposes. At December 31, 1998, the International Growth Portfolio had
entered into various forward currency exchange contracts under which it is
obligated to exchange currencies at specified future dates. Risks arise from the
possible inability of counterparties to meet the terms of their contracts and
from movements in currency values. Outstanding contracts at December 31, 1998
are as follows:
<TABLE>
<CAPTION>
PURCHASES NET UNREALIZED
SETTLEMENT ----------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
---------- ---------------- --------------- --------------
<S> <C> <C> <C>
6/18/99 AUD 5,100,000 USD 3,170,925 $(40,979)
6/18/99 CAD 2,300,000 USD 1,497,396 8,463
6/18/99 CHF 700,000 USD 525,131 (7,322)
6/18/99 ESP 165,000,000 USD 1,184,600 (13,462)
6/18/99 ITL 880,000,000 USD 537,766 (991)
6/18/99 PTE 102,000,000 USD 607,577 (4,639)
6/18/99 SEK 23,900,000 USD 2,995,400 (31,937)
--------
$(90,867)
</TABLE>
<TABLE>
<CAPTION>
SALES
-----------------------------------
RECEIVE DELIVER
---------------- ---------------
<S> <C> <C> <C>
6/18/99 USD 1,007,557 BEL 34,000,000 15,989
6/18/99 USD 1,361,254 FIM 6,800,000 16,055
6/18/99 USD 575,571 FRF 3,200,000 (1,684)
6/18/99 USD 4,705,120 GBP 2,800,000 68,729
6/18/99 USD 1,680,035 NLG 3,100,000 15,791
--------
114,880
--------
$ 24,013
========
</TABLE>
As part of its investment program, the High-Yield Bond Portfolio enters
into futures contracts to hedge against anticipated future price and interest
rate changes. Risks of entering into futures contracts include: (1) the risk
that the price of the futures contracts may not move in the same direction as
the price of the securities in the various markets; (2) the risk that there will
be no liquid secondary market when the Portfolio attempts to enter into a
closing position; (3) the risk that the Portfolio will lose an amount in excess
of the initial margin deposit; and (4) the fact that the success or failure of
these transactions for the Portfolio depends on the ability of the Portfolio
Manager to predict movements in stock, bond, and currency prices and interest
rates. There were no open futures contracts at December 31, 1998 in the
High-Yield Bond Portfolio.
5. PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1998, 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>
Growth........................................... -- -- $ 1,385,809 $ 5,177
Growth and Income................................ -- -- 366,310 27,474
Equity........................................... -- -- 216,213,803 144,861,199
Equity Income.................................... -- -- 363,884 --
Capital Appreciation............................. -- -- 273,937 2,399
Small Company Growth............................. -- -- 352,518 13,733
Small Company Value.............................. -- -- 170,146,494 141,300,517
International Growth............................. -- -- 50,955,176 45,957,009
High-Yield Bond.................................. $ 10,300,938 $11,741,875 117,449,514 79,211,214
Managed.......................................... 106,871,094 8,370,000 1,015,037,967 1,194,590,442
</TABLE>
182
<PAGE> 202
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1998
6. UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS AND DISTRIBUTIONS
At December 31, 1998, the composition of unrealized appreciation
(depreciation) of investment securities and the cost of investments for Federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET UNREALIZED
PORTFOLIO TAX COST GAIN LOSS GAIN (LOSS)
--------- -------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Growth......................................... $ 1,380,632 $ 57,094 $ (9,018) $ 48,076
Growth and Income.............................. 339,217 15,218 (3,892) 11,326
Equity......................................... 488,061,496 154,440,993 (21,066,540) 133,374,453
Equity Income.................................. 363,884 10,853 (4,481) 6,372
Capital Appreciation........................... 271,310 39,347 (1,179) 38,168
Small Company Growth........................... 337,932 40,435 (7,184) 33,251
Small Company Value............................ 341,793,410 94,492,733 (28,957,684) 65,535,049
International Growth........................... 81,091,924 15,162,855 (5,442,971) 9,719,884
High-Yield Bond................................ 103,639,411 1,854,711 (5,475,002) (3,620,291)
Managed........................................ 2,185,269,489 643,688,121 (90,270,304) 553,417,817
</TABLE>
Federal Tax Information (Unaudited):
The capital gains dividend distribution paid to shareholders, taken in
additional shares, is as follows:
<TABLE>
<CAPTION>
CAPITAL GAINS
-------------
<S> <C>
Growth...................................................... --
Growth and Income........................................... --
Equity...................................................... $ 19,683,565
Equity Income............................................... --
Capital Appreciation........................................ --
Small Company Growth........................................ --
Small Company Value......................................... 11,175,584
International Growth........................................ 1,253,093
High-Yield Bond............................................. 441,141
Managed..................................................... 159,036,909
</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.
183
<PAGE> 203
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Enterprise Accumulation Trust:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets, and the financial highlights, present
fairly, in all material respects, the financial position of the Growth, Growth
and Income, Equity, Equity Income, Capital Appreciation, Small Company Growth,
Small Company Value, International Growth, High-Yield Bond and Managed
Portfolios of Enterprise Accumulation Trust (collectively the "Trust") at
December 31, 1998, the results of their operations for the year (or period) then
ended, the changes in their net assets for each of the two years (or periods) in
the period then ended, and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Atlanta, Georgia
February 17, 1999
184
<PAGE> 204
TRUSTEES AND PRINCIPAL OFFICERS
<TABLE>
<S> <C>
Victor Ugolyn Trustee, Chairman, President and
Chief Executive Officer
Arthur T. Dietz Trustee
Samuel J. Foti Trustee
Arthur Howell Trustee
William A. Mitchell, Jr. Trustee
Lonnie H. Pope Trustee
Michael I. Roth Trustee
Phillip G. Goff Vice President
Catherine R. McClellan Secretary
Herbert M. Williamson Treasurer
</TABLE>
INVESTMENT ADVISER
Enterprise Capital Management, Inc.
Atlanta Financial Center
3343 Peachtree Road, Suite 450
Atlanta, Georgia 30326
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
P. O. Box 1713
Boston, Massachusetts 02105
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1100 Campanile Building
1155 Peachtree Street
Atlanta, Georgia 30309
This report is authorized for distribution only to shareholders and to
others who have received a copy of this Trust's prospectus.
185
<PAGE> 205
(This page intentionally left blank.)
186
<PAGE> 206
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,
MONY LIFE INSURANCE COMPANY
1740 Broadway, New York, NY 10019
DISTRIBUTOR OF MONY CUSTOM MASTER, MONYMASTER, MONY CUSTOM EQUITY MASTER AND
MONYEQUITY MASTER:
MONY SECURITIES CORPORATION
1740 Broadway, New York, NY 10019
(Member NASD, SIPC) #0061-new99
<PAGE> 207
[MONY LOGO]
MONY Life Insurance Company
Administrative Offices
1740 Broadway, New York, NY 10019
----------------------
BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 8048
NEW YORK, NEW YORK
----------------------
Form No. 13634SL (2/99)
