<PAGE> 1
1999 SEMI-ANNUAL REPORT
MONY SERIES FUND, INC.
ENTERPRISE ACCUMULATION TRUST
OCC ACCUMULATION TRUST
=============================================================================
PRODUCTS:
=============================================================================
MONY CUSTOM MASTER
- -----------------------------------------------------------------------------
MONYMASTER
- -----------------------------------------------------------------------------
MONY CUSTOM EQUITY MASTER
- -----------------------------------------------------------------------------
MONYEQUITY MASTER
- -----------------------------------------------------------------------------
MONY CUSTOM ESTATE MASTER
- -----------------------------------------------------------------------------
VALUEMASTER
- -----------------------------------------------------------------------------
MONYVESTOR
- -----------------------------------------------------------------------------
STRATEGIST
- -----------------------------------------------------------------------------
[MONY LOGO] THE MONY GROUP
<PAGE> 2
MONY SERIES FUND, INC.
Dear Shareholders,
The big story for the financial markets in the second quarter was the
ongoing process of global recovery from last fall's crisis. The world is slowly
getting better, not in all areas and not all at the same pace, but things are
moving in the right direction. The major contributor to the healing process has
been accommodative monetary policies by central banks which lowered interest
rates. The U.S. continues as the locomotive of growth, but Southeast Asia and
Latin American are beginning to recover and should also help. Europe is showing
mixed results and Japan is just beginning to restructure, but both areas could
improve over the next year.
U.S. growth has been very strong led by the consumer, who has been
encouraged by the stronger stock market, bigger than expected tax refunds and
favorable employment trends in the first quarter. This growth, which has been
somewhat stronger than the Federal Reserve and the bond market feel comfortable
with, should moderate as the year goes on. Interest rates have risen, as have
energy and food prices, reducing discretionary income. Tax refunds and bonus
payouts were a first quarter one time event. The Fed, concerned about future
inflation, will be actively moving to slow the economy down by raising short
term interest rates, effectively rescinding last fall's crisis related easing.
This combination should help bring growth back to more acceptable levels.
As a result of better worldwide economic and financial conditions,
corporate profit growth will be stronger. The cyclical sectors in particular
should benefit from improvement abroad, even if U.S. growth moderates as
expected. This is important for the stock market because the rise in long-term
interest rates has materially worsened valuations, which were already rich by
historical standards. Although long rates are expected to ease as economic
growth moderates, stock valuation models need a healthy corporate profit gain to
keep valuations from becoming even more excessive. The stock market has been
laboring recently under the weight of economic, interest rate, and profit
cross-currents. A correction here is quite possible and would be healthy for the
longevity of the bull market. The bond market, on the other hand, has already
experienced a significant correction, and at current levels looks relatively
attractive. A major market decline in the financial markets is not expected,
unless the economy fails to slow, and the Federal Reserve becomes aggressively
restrictive both in words and actions.
Sincerely,
/s/ KENNETH M. LEVINE
Kenneth M. Levine
Chairman
1
<PAGE> 3
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
June 30, 1999..................................... 5
Statements of Operations for the six months ended
June 30, 1999..................................... 7
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 9
Notes to Financial Statements..................... 12
MONY America (MONY Custom Equity Master)
Statements of Assets and Liabilities as of June
30, 1999.......................................... 15
Statements of Operations for the six months ended
June 30, 1999..................................... 17
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 19
Notes to Financial Statements..................... 24
MONY America (MONY Custom Estate Master)
Statements of Assets and Liabilities as of
June 30, 1999..................................... 27
Statements of Operations for the periods ended
June 30, 1999..................................... 29
Statements of Changes in Net Assets for the
periods ended June 30, 1999....................... 31
Notes to Financial Statements..................... 33
MONY (Strategist and MONYEquity Master)
Statements of Assets and Liabilities as of
June 30, 1999..................................... 36
Statements of Operations for the six months ended
June 30, 1999..................................... 38
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 40
Notes to Financial Statements..................... 43
VARIABLE ACCOUNT S
MONY America (MONYVestor)
Statements of Assets and Liabilities as of
June 30, 1999..................................... 46
Statements of Operations for the six months ended
June 30, 1999..................................... 47
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 48
Notes to Financial Statements..................... 49
MONY (MONYVestor)
Statements of Assets and Liabilities as of June
30, 1999.......................................... 51
Statements of Operations for the six months ended
June 30, 1999..................................... 52
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 53
Notes to Financial Statements..................... 54
VARIABLE ACCOUNT A
MONY America (MONYMaster I&II and ValueMaster)
Statements of Assets and Liabilities as of
June 30, 1999..................................... 56
Statements of Operations for the six months ended
June 30, 1999..................................... 59
</TABLE>
2
<PAGE> 4
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 62
Notes to Financial Statements..................... 66
MONY America (MONY Custom Master)
Statements of Assets and Liabilities as of
June 30, 1999..................................... 69
Statements of Operations for the six months ended
June 30, 1999..................................... 71
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 73
Notes to Financial Statements..................... 76
MONY (MONYMaster I&II and ValueMaster)
Statements of Assets and Liabilities as of
June 30, 1999..................................... 79
Statements of Operations for the six months ended
June 30, 1999..................................... 82
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 85
Notes to Financial Statements..................... 89
MONY SERIES FUND, INC.
Equity Growth Portfolio........................... 93
Equity Income Portfolio........................... 96
Intermediate Term Bond Portfolio.................. 99
Long Term Bond Portfolio.......................... 102
Diversified Portfolio............................. 105
Government Securities Portfolio................... 108
Money Market Portfolio............................ 110
Statements of Assets and Liabilities as of
June 30, 1999..................................... 113
Statements of Operations for the six months ended
June 30, 1999..................................... 114
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 115
Notes to Financial Statements..................... 117
Financial Highlights.............................. 120
ENTERPRISE ACCUMULATION TRUST
Growth Portfolio.................................. 129
Growth and Income Portfolio....................... 131
Equity Portfolio.................................. 134
Equity Income Portfolio........................... 137
Capital Appreciation Portfolio.................... 140
Small Company Growth Portfolio.................... 144
Small Company Value Portfolio..................... 147
International Growth Portfolio.................... 152
High Yield Bond Portfolio......................... 156
Managed Portfolio................................. 162
Statements of Assets and Liabilities as of
June 30, 1999..................................... 166
Statements of Operations for the six months ended
June 30, 1999..................................... 168
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 170
Financial Highlights.............................. 173
Notes to Financial Statements..................... 177
</TABLE>
3
<PAGE> 5
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
OCC ACCUMULATION TRUST
Equity Portfolio.................................. 184
Small Cap Portfolio............................... 186
Managed Portfolio................................. 188
U.S. Government Income Portfolio.................. 190
Equity Portfolio Schedule of Investments.......... 191
Small Cap Portfolio Schedule of Investments....... 192
Managed Portfolio Schedule of Investments......... 193
U.S. Government Income Portfolio Schedule of
Investments....................................... 194
Statements of Assets and Liabilities as of
June 30, 1999..................................... 195
Statements of Operations for the six months ended
June 30, 1999..................................... 196
Statements of Changes in Net Assets for the
periods ended June 30, 1999 and December 31,
1998.............................................. 197
Notes to Financial Statements..................... 198
Financial Highlights.............................. 201
</TABLE>
4
<PAGE> 6
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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).... $ 789,739 $ 717,088 $ 145,252 $ 59,851 $ 1,157,277 $ 63,594
========== ========= ========= ========= =========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................ $1,138,722 $ 820,837 $ 147,409 $ 60,005 $ 1,368,455 $ 63,594
Amount due from MONY America.... 29 31 0 0 11 0
Amount due from MONY Series
Fund, Inc..................... 126 181 51 0 302 12
---------- --------- --------- --------- ----------- ---------
Total assets.......... 1,138,877 821,049 147,460 60,005 1,368,768 63,606
---------- --------- --------- --------- ----------- ---------
LIABILITIES
Amount due to MONY America...... 126 181 51 0 302 12
Amount due to MONY Series Fund,
Inc. ......................... 29 31 0 0 11 0
---------- --------- --------- --------- ----------- ---------
Total liabilities..... 155 212 51 0 313 12
---------- --------- --------- --------- ----------- ---------
Net assets...................... $1,138,722 $ 820,837 $ 147,409 $ 60,005 $ 1,368,455 $ 63,594
========== ========= ========= ========= =========== =========
Net assets consist of:
Contractholders' net
payments................... $ 560,838 $ 438,532 $ 191,509 $ 107,621 $ 853,640 $ 202,507
Cost of insurance withdrawals
(Note 3)................... (420,794) (542,534) (219,281) (169,249) (1,001,455) (220,725)
Undistributed net investment
income..................... 384,380 578,070 177,572 107,019 947,361 81,812
Accumulated net realized gain
(loss) on investments...... 265,315 243,020 (4,548) 14,460 357,731 0
Unrealized appreciation of
investments................ 348,983 103,749 2,157 154 211,178 0
---------- --------- --------- --------- ----------- ---------
Net assets...................... $1,138,722 $ 820,837 $ 147,409 $ 60,005 $ 1,368,455 $ 63,594
========== ========= ========= ========= =========== =========
Number of units outstanding*.... 14,206 11,344 5,907 1,909 24,736 3,318
---------- --------- --------- --------- ----------- ---------
Net asset value per unit
outstanding*.................. $ 80.16 $ 72.36 $ 24.96 $ 31.43 $ 55.32 $ 19.17
========== ========= ========= ========= =========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
5
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
----------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------- ---------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL
TERM BOND BOND SECURITIES MARKET EQUITY COMPANY VALUE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................ $ 839,319 $1,656,789 $ 951,858 $3,877,166 $35,086,481 $20,882,734
========= ========== ========= ========== =========== ===========
Investments in Enterprise Accumulation Trust
at net asset value (Note 2)............... $ 0 $ 0 $ 0 $ 0 $38,170,803 $23,328,697
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)...................... 806,127 1,531,949 938,842 3,877,166 0 0
Amount due from Enterprise Accumulation
Trust..................................... 0 0 0 0 3,123 1,765
Amount due from MONY America................ 211 46 983 1,183 28,223 16,213
Amount due from MONY Series Fund, Inc. ..... 198 2,908 3,075 359 0 0
--------- ---------- ---------- ----------- ----------- -----------
Total assets........................ 806,536 1,534,903 942,900 3,878,708 38,202,149 23,346,675
--------- ---------- ---------- ----------- ----------- -----------
LIABILITIES
Amount due to Enterprise Accumulation
Trust..................................... 0 0 0 0 28,223 16,213
Amount due to MONY America.................. 198 2,908 3,075 359 3,123 1,765
Amount due to MONY Series Fund, Inc. ....... 211 46 983 1,183 0 0
--------- ---------- ---------- ----------- ----------- -----------
Total liabilities................... 409 2,954 4,058 1,542 31,346 17,978
--------- ---------- ---------- ----------- ----------- -----------
Net assets.................................. $ 806,127 $1,531,949 $ 938,842 $3,877,166 $38,170,803 $23,328,697
========= ========== ========== =========== =========== ===========
Net assets consist of:
Contractholders' net payments............. $ 898,876 $1,814,305 $1,091,677 $4,554,518 $38,992,424 $22,434,135
Cost of insurance withdrawals (Note 3).... (118,835) (406,346) (214,730) (1,119,885) (8,372,381) (4,515,598)
Undistributed net investment income....... 53,751 178,058 51,806 442,533 1,545,295 1,574,770
Accumulated net realized gain on
investments............................. 5,527 70,772 23,105 0 2,921,143 1,389,427
Unrealized appreciation (depreciation) of
investments............................. (33,192) (124,840) (13,016) 0 3,084,322 2,445,963
--------- ---------- ---------- ----------- ----------- -----------
Net assets.................................. $ 806,127 $1,531,949 $ 938,842 $3,877,166 $38,170,803 $23,328,697
========= ========== ========== =========== =========== ===========
Number of units outstanding*................ 63,995 110,173 75,890 320,859 1,612,238 1,037,410
--------- ---------- ---------- ----------- ----------- -----------
Net asset value per unit outstanding*....... $ 12.60 $ 13.90 $ 12.37 $ 12.08 $ 23.68 $ 22.49
========= ========== ========== =========== =========== ===========
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................ $103,298,170 $ 8,736,941 $4,136,643
============ =========== ==========
Investments in Enterprise Accumulation Trust
at net asset value (Note 2)............... $108,433,908 $ 9,003,792 $3,930,866
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)...................... 0 0 0
Amount due from Enterprise Accumulation
Trust..................................... 7,433 1,839 1,295
Amount due from MONY America................ 52,578 2,096 1,228
Amount due from MONY Series Fund, Inc. ..... 0 0 0
------------ ----------- ----------
Total assets........................ 108,493,919 9,007,727 3,933,389
------------ ----------- ----------
LIABILITIES
Amount due to Enterprise Accumulation
Trust..................................... 52,578 2,096 1,228
Amount due to MONY America.................. 7,433 1,839 1,295
Amount due to MONY Series Fund, Inc. ....... 0 0 0
------------ ----------- ----------
Total liabilities................... 60,011 3,935 2,523
------------ ----------- ----------
Net assets.................................. $108,433,908 $ 9,003,792 $3,930,866
============ =========== ==========
Net assets consist of:
Contractholders' net payments............. $109,651,125 $10,027,500 $4,501,374
Cost of insurance withdrawals (Note 3).... (24,784,132) (2,017,043) (936,335)
Undistributed net investment income....... 8,807,901 394,876 550,873
Accumulated net realized gain on
investments............................. 9,623,276 331,608 20,731
Unrealized appreciation (depreciation) of
investments............................. 5,135,738 266,851 (205,777)
------------ ----------- ----------
Net assets.................................. $108,433,908 $ 9,003,792 $3,930,866
============ =========== ==========
Number of units outstanding*................ 4,649,673 556,322 268,319
------------ ----------- ----------
Net asset value per unit outstanding*....... $ 23.32 $ 16.18 $ 14.65
============ =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
6
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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..................... $ 86,240 $138,748 $ 6,984 $ 3,619 $163,472 $ 1,535
Mortality and expense risk charges
(Note 3).......................... (3,169) (2,359) (443) (189) (3,955) (200)
-------- -------- ------- ------- -------- --------
Net investment income............... 83,071 136,389 6,541 3,430 59,517 1,335
-------- -------- ------- ------- -------- --------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales............... 19,201 56,069 7,590 8,778 84,304 10,698
Cost of shares sold............... (9,941) (38,560) (7,270) (6,751) (56,171) (10,698)
-------- -------- ------- ------- -------- --------
Net realized gain on investments.... 9,260 17,509 320 2,027 28,133 0
Net increase (decrease) in
unrealized appreciation of
investments....................... 70,482 (59,318) (8,198) (9,544) (9,349) 0
-------- -------- ------- ------- -------- --------
Net realized and unrealized gain
(loss) on investments............. 79,742 (41,809) (7,878) (7,517) 18,784 0
-------- -------- ------- ------- -------- --------
Net increase (decrease) in net
assets resulting from
operations........................ $162,813 $ 94,580 $(1,337) $(4,087) $178,301 $ 1,335
======== ======== ======= ======= ======== ========
</TABLE>
See notes to financial statements.
7
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------- -----------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income............... $ 38,579 $ 92,636 $ 25,957 $ 91,751 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............ (2,862) (6,386) (3,087) (14,919) (125,990) (74,313)
-------- --------- --------- ----------- ----------- -----------
Net investment income
(loss)...................... 35,717 86,250 22,870 76,832 (125,990) (74,313)
-------- --------- --------- ----------- ----------- -----------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 84,483 918,049 126,142 5,318,608 3,920,321 2,486,249
Cost of shares sold......... (84,697) (909,233) (119,803) (5,318,608) (3,242,797) (2,360,177)
-------- --------- --------- ----------- ----------- -----------
Net realized gain (loss) on
investments................. (214) 8,816 6,339 0 677,524 126,072
Net increase (decrease) in
unrealized appreciation of
investments................. (43,641) (208,612) (34,941) 0 2,274,033 2,584,879
-------- --------- --------- ----------- ----------- -----------
Net realized and unrealized
gain (loss) on
investments................. (43,855) (199,796) (28,602) 0 2,951,557 2,710,951
-------- --------- --------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations.................. $ (8,138) $(113,546) $ (5,732) $ 76,832 $ 2,825,567 $ 2,636,638
======== ========= ========= =========== =========== ===========
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ----------
<S> <C> <C> <C>
Dividend income............... $ 0 $ 0 $ 160,312
Mortality and expense risk
charges (Note 3)............ (371,931) (30,687) (14,243)
------------ --------- ---------
Net investment income
(loss)...................... (371,931) (30,687) 146,069
------------ --------- ---------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 11,021,116 827,492 577,549
Cost of shares sold......... (9,405,030) (808,777) (608,939)
------------ --------- ---------
Net realized gain (loss) on
investments................. 1,616,086 18,715 (31,390)
Net increase (decrease) in
unrealized appreciation of
investments................. 5,769,217 114,006 (59,568)
------------ --------- ---------
Net realized and unrealized
gain (loss) on
investments................. 7,385,303 132,721 (90,958)
------------ --------- ---------
Net increase (decrease) in net
assets resulting from
operations.................. $ 7,013,372 $ 102,034 $ 55,111
============ ========= =========
</TABLE>
See notes to financial statements.
8
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STRATEGIST
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.... $ 83,071 $133,288 $136,389 $113,923 $ 6,541 $ 7,197
Net realized gain on
investments............ 9,260 31,754 17,509 24,324 320 1,127
Net increase (decrease)
in unrealized
appreciation of
investments............ 70,482 26,614 (59,318) (55,179) (8,198) 1,982
---------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets resulting from
operations............... 162,813 191,656 94,580 83,068 (1,337) 10,306
---------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units...... 28,659 47,550 16,085 31,012 4,988 8,787
Net asset value of units
redeemed or used to
meet contract
obligations............ (14,085) (76,005) (48,883) (60,685) (6,738) (25,134)
---------- -------- -------- -------- -------- --------
Net increase (decrease)
from unit transactions... 14,574 (28,455) (32,798) (29,673) (1,750) (16,347)
---------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets............... 177,387 163,201 61,782 53,395 (3,087) (6,041)
Net assets beginning of
period................... 961,335 798,134 759,055 705,660 150,496 156,537
---------- -------- -------- -------- -------- --------
Net assets end of
period*.................. $1,138,722 $961,335 $820,837 $759,055 $147,409 $150,496
========== ======== ======== ======== ======== ========
Units outstanding
beginning of period...... 14,007 14,506 11,808 12,292 5,977 6,639
Units issued during the
period................... 392 803 243 526 198 363
Units redeemed during the
period................... (193) (1,302) (707) (1,010) (268) (1,025)
---------- -------- -------- -------- -------- --------
Units outstanding end of
period................... 14,206 14,007 11,344 11,808 5,907 5,977
========== ======== ======== ======== ======== ========
- ---------------
* Includes undistributed
net investment income of: $ 384,380 $301,309 $578,070 $441,681 $177,572 $171,031
<CAPTION>
STRATEGIST
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.... $ 3,430 $ 3,494 $ 159,517 $ 254,338 $ 1,335 $ 3,301
Net realized gain on
investments............ 2,027 1,624 28,133 73,407 0 0
Net increase (decrease)
in unrealized
appreciation of
investments............ (9,544) 1,198 (9,349) (84,041) 0 0
-------- -------- ---------- ---------- -------- --------
Net increase (decrease) in
net assets resulting from
operations............... (4,087) 6,316 178,301 243,704 1,335 3,301
-------- -------- ---------- ---------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units...... 1,713 4,168 32,615 63,685 3,610 6,765
Net asset value of units
redeemed or used to
meet contract
obligations............ (8,455) (11,205) (77,286) (183,727) (10,468) (16,512)
-------- -------- ---------- ---------- -------- --------
Net increase (decrease)
from unit transactions... (6,742) (7,037) (44,671) (120,042) (6,858) (9,747)
-------- -------- ---------- ---------- -------- --------
Net increase (decrease) in
net assets............... (10,829) (721) 133,630 123,662 (5,523) (6,446)
Net assets beginning of
period................... 70,834 71,555 1,234,825 1,111,163 69,117 75,563
-------- -------- ---------- ---------- -------- --------
Net assets end of
period*.................. $ 60,005 $ 70,834 $1,368,455 $1,234,825 $ 63,594 $ 69,117
======== ======== ========== ========== ======== ========
Units outstanding
beginning of period...... 2,112 2,334 25,565 28,291 3,678 4,207
Units issued during the
period................... 52 127 641 1,509 191 369
Units redeemed during the
period................... (255) (349) (1,470) (4,235) (551) (898)
-------- -------- ---------- ---------- -------- --------
Units outstanding end of
period................... 1,909 2,112 24,736 25,565 3,318 3,678
======== ======== ========== ========== ======== ========
- ---------------
* Includes undistributed
net investment income of: $107,019 $103,589 $ 947,361 $ 787,844 $ 81,812 $ 80,477
</TABLE>
See notes to financial statements.
9
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND GOVERNMENT SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 35,717 $ 11,937 $ 86,250 $ 44,501 $ 22,870 $ 14,412
Net realized gain (loss) on
investments.................... (214) 4,813 8,816 53,711 6,339 10,794
Net increase (decrease) in
unrealized appreciation of
investments.................... (43,641) 5,189 (208,612) 5,771 (34,941) 5,587
-------- -------- ---------- ---------- --------- ---------
Net increase (decrease) in net
assets resulting from
operations....................... (8,138) 21,939 (113,546) 103,983 (5,732) 30,793
-------- -------- ---------- ---------- --------- ---------
From unit transactions:
Net proceeds from the issuance of
units.......................... 230,914 495,470 624,456 910,497 339,814 389,606
Net asset value of units redeemed
or used to meet contract
obligations.................... (68,670) (99,753) (534,737) (407,166) (114,614) (199,430)
-------- -------- ---------- ---------- --------- ---------
Net increase (decrease) from unit
transactions..................... 162,244 395,717 89,719 503,331 225,200 190,176
-------- -------- ---------- ---------- --------- ---------
Net increase (decrease) in net
assets........................... 154,106 417,656 (23,827) 607,314 219,468 220,969
Net assets beginning of period..... 652,021 234,365 1,555,776 948,462 719,374 498,405
-------- -------- ---------- ---------- --------- ---------
Net assets end of period*.......... $806,127 $652,021 $1,531,949 $1,555,776 $ 938,842 $ 719,374
======== ======== ========== ========== ========= =========
Units outstanding beginning of
period........................... 51,260 19,650 104,745 69,779 57,728 42,420
Units issued during the period..... 18,439 39,723 46,350 63,831 27,705 31,996
Units redeemed during the period... (5,704) (8,113) (40,922) (28,865) (9,543) (16,688)
-------- -------- ---------- ---------- --------- ---------
Units outstanding end of period.... 63,995 51,260 110,173 104,745 75,890 57,728
======== ======== ========== ========== ========= =========
- ---------------
* Includes undistributed net
investment income of: $ 53,751 $ 18,034 $ 178,058 $ 91,808 $ 51,806 $ 28,936
<CAPTION>
MONYEQUITY MASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
MONEY MARKET
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 76,832 $ 143,110
Net realized gain (loss) on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
----------- ------------
Net increase (decrease) in net
assets resulting from
operations....................... 76,832 143,110
----------- ------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,492,878 21,592,510
Net asset value of units redeemed
or used to meet contract
obligations.................... (4,023,040) (20,103,798)
----------- ------------
Net increase (decrease) from unit
transactions..................... (1,530,162) 1,488,712
----------- ------------
Net increase (decrease) in net
assets........................... (1,453,330) 1,631,822
Net assets beginning of period..... 5,330,496 3,698,674
----------- ------------
Net assets end of period*.......... $ 3,877,166 $ 5,330,496
=========== ============
Units outstanding beginning of
period........................... 449,645 325,979
Units issued during the period..... 232,690 1,861,351
Units redeemed during the period... (361,476) (1,737,685)
----------- ------------
Units outstanding end of period.... 320,859 449,645
=========== ============
- ---------------
* Includes undistributed net
investment income of: $ 442,533 $ 365,701
</TABLE>
See notes to financial statements.
10
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------
EQUITY SMALL COMPANY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)................... $ (125,990) $ 1,132,378 $ (74,313) $ 943,250 $ (371,931) $ 6,460,211
Net realized gain (loss) on
investments.............. 677,524 1,299,251 126,072 880,276 1,616,086 4,263,820
Net increase (decrease) in
unrealized appreciation
of investments........... 2,274,033 (555,041) 2,584,879 (781,462) 5,769,217 (6,000,861)
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets
resulting from
operations................. 2,825,567 1,876,588 2,636,638 1,042,064 7,013,372 4,723,170
----------- ----------- ----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the
issuance of units........ 8,447,288 17,178,981 5,370,060 11,226,613 18,716,618 43,195,093
Net asset value of units
redeemed or used to meet
contract obligations..... (3,179,450) (5,460,969) (2,004,568) (3,126,835) (9,149,554) (16,133,792)
----------- ----------- ----------- ----------- ------------ ------------
Net increase from unit
transactions............... 5,267,838 11,718,012 3,365,492 8,099,778 9,567,064 27,061,301
----------- ----------- ----------- ----------- ------------ ------------
Net increase in net assets... 8,093,405 13,594,600 6,002,130 9,141,842 16,580,436 31,784,471
Net assets beginning of
period..................... 30,077,398 16,482,798 17,326,567 8,184,725 91,853,472 60,069,001
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of period*.... $38,170,803 $30,077,398 $23,328,697 $17,326,567 $108,433,908 $ 91,853,472
=========== =========== =========== =========== ============ ============
Units outstanding beginning
of period.................. 1,373,480 821,090 874,371 449,403 4,216,748 2,954,670
Units issued during the
period..................... 391,089 812,747 264,038 594,256 852,035 2,028,359
Units redeemed during the
period..................... (152,331) (260,357) (100,999) (169,288) (419,110) (766,281)
----------- ----------- ----------- ----------- ------------ ------------
Units outstanding end of
period..................... 1,612,238 1,373,480 1,037,410 874,371 4,649,673 4,216,748
=========== =========== =========== =========== ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 1,545,295 $ 1,671,285 $ 1,574,770 $ 1,649,083 $ 8,807,901 $ 9,179,832
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)................... $ (30,687) $ 309,850 $ 146,069 $ 243,867
Net realized gain (loss) on
investments.............. 18,715 147,844 (31,390) 15,820
Net increase (decrease) in
unrealized appreciation
of investments........... 114,006 260,368 (59,568) (184,965)
---------- ----------- ---------- ----------
Net increase in net assets
resulting from
operations................. 102,034 718,062 55,111 74,722
---------- ----------- ---------- ----------
From unit transactions:
Net proceeds from the
issuance of units........ 2,013,656 4,158,036 859,809 2,119,601
Net asset value of units
redeemed or used to meet
contract obligations..... (730,699) (1,336,551) (519,825) (598,271)
---------- ----------- ---------- ----------
Net increase from unit
transactions............... 1,282,957 2,821,485 339,984 1,521,330
---------- ----------- ---------- ----------
Net increase in net assets... 1,384,991 3,539,547 395,095 1,596,052
Net assets beginning of
period..................... 7,618,801 4,079,254 3,535,771 1,939,719
---------- ----------- ---------- ----------
Net assets end of period*.... $9,003,792 $ 7,618,801 $3,930,866 $3,535,771
========== =========== ========== ==========
Units outstanding beginning
of period.................. 475,982 290,466 245,156 138,275
Units issued during the
period..................... 127,339 275,608 59,096 148,827
Units redeemed during the
period..................... (46,999) (90,092) (35,933) (41,946)
---------- ----------- ---------- ----------
Units outstanding end of
period..................... 556,322 475,982 268,319 245,156
========== =========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 394,876 $ 425,563 $ 550,873 $ 404,804
</TABLE>
See notes to financial statements.
11
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable 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
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 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 1999
aggregated $9,540,661.
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.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
12
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1999 consist of
the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares...................... 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
-------- -------- -------- ------- ---------- --------
Shares acquired:
Shares...................... 758 823 485 135 1,724 3,640
Amount...................... $ 30,606 $ 20,912 $ 5,397 $ 1,847 $ 35,678 $ 3,640
Shares received for
reinvestment of dividends:
Shares...................... 2,116 5,691 649 286 8,194 1,535
Amount...................... $ 86,240 $138,748 $ 6,984 $ 3,619 $ 163,472 $ 1,535
Shares redeemed:
Shares...................... (468) (2,220) (679) (631) (4,126) (10,698)
Amount...................... $ (9,941) $(38,560) $ (7,270) $(6,751) $ (56,171) $(10,698)
-------- -------- -------- ------- ---------- --------
Net change:
Shares...................... 2,406 4,294 455 (210) 5,792 (5,523)
Amount...................... $106,905 $121,100 $ 5,111 $(1,285) $ 142,979 $ (5,523)
-------- -------- -------- ------- ---------- --------
Shares end of period:
Shares...................... 27,572 33,545 13,738 4,788 67,812 63,594
Amount...................... $789,739 $717,088 $145,252 $59,851 $1,157,277 $ 63,594
======== ======== ======== ======= ========== ========
</TABLE>
13
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at June 30, 1999 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
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ---------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 57,548 $ 109,794 64,402 5,330,496 816,877 633,281
Amount............. $641,572 $1,472,004 $ 697,449 $ 5,330,496 $29,267,109 $17,465,483
-------- ---------- --------- ----------- ----------- -----------
Shares acquired:
Shares............. 21,682 74,509 31,608 3,773,527 241,876 201,805
Amount............. $243,865 $1,001,382 $ 348,255 $ 3,773,527 $ 9,062,169 $ 5,777,428
Shares received for
reinvestment of
dividends:
Shares............. 3,585 7,311 2,399 91,751 0 0
Amount............. $ 38,579 $ 92,636 $ 25,957 $ 91,751 $ 0 $ 0
Shares redeemed:
Shares............. (7,686) (69,351) (11,480) (5,318,608) (103,288) (86,412)
Amount............. $(84,697) $ (909,233) $(119,803) $(5,318,608) $(3,242,797) $(2,360,177)
-------- ---------- --------- ----------- ----------- -----------
Net change:
Shares............. 17,581 12,469 22,527 (1,453,330) 138,588 115,393
Amount............. $197,747 $ 184,785 $ 254,409 $(1,453,330) $ 5,819,372 $ 3,417,251
-------- ---------- --------- ----------- ----------- -----------
Shares end of period:
Shares............. 75,129 122,263 86,929 3,877,166 955,465 748,674
Amount............. $839,319 $1,656,789 $ 951,858 $ 3,877,166 $35,086,481 $20,882,734
======== ========== ========= =========== =========== ===========
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ----------
<S> <C> <C> <C>
Shares beginning of
period:
Shares............. 2,264,632 1,130,386 658,431
Amount............. $ 92,486,951 $7,465,956 $3,681,980
------------ ---------- ----------
Shares acquired:
Shares............. 486,593 308,918 168,291
Amount............. $ 20,216,249 $2,079,762 $ 903,290
Shares received for
reinvestment of
dividends:
Shares............. 0 0 29,963
Amount............. $ 0 $ 0 $ 160,312
Shares redeemed:
Shares............. (263,068) (122,960) (107,948)
Amount............. $ (9,405,030) $ (808,777) $ (608,939)
------------ ---------- ----------
Net change:
Shares............. 223,525 185,958 90,306
Amount............. $ 10,811,219 $1,270,985 $ 454,663
------------ ---------- ----------
Shares end of period:
Shares............. 2,488,157 1,316,344 748,737
Amount............. $103,298,170 $8,736,941 $4,136,643
============ ========== ==========
</TABLE>
14
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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)..... $186,829 $198,299 $122,187 $632,277 $1,001,373 $893,225 $2,584,849
======== ======== ======== ======== ========== ======== ==========
Investments in Enterprise
Accumulation Trust, at net
asset value (Note 2)........... $ 0 $ 0 $ 0 $ 0 $1,036,639 $961,572 $2,680,729
Investments in MONY Series Fund,
Inc., at net asset value (Note
2)............................. 178,200 187,933 119,776 632,277 0 0 0
Amount due from Enterprise
Accumulation Trust............. 0 0 0 0 1,607 1,395 3,442
Amount due from MONY America..... 13 77 13 207 4,342 2,699 9,908
Amount due from MONY Series Fund,
Inc. .......................... 514 841 576 460 0 0 0
-------- -------- -------- -------- ---------- -------- ----------
Total assets........... 178,727 188,851 120,365 632,944 1,042,588 965,666 2,694,079
-------- -------- -------- -------- ---------- -------- ----------
LIABILITIES
Amount due to Enterprise
Accumulation Trust............. 0 0 0 0 4,342 2,699 9,908
Amount due to MONY America....... 514 841 576 460 1,607 1,395 3,442
Amount due to MONY Series Fund,
Inc............................ 13 77 13 207 0 0 0
-------- -------- -------- -------- ---------- -------- ----------
Total liabilities...... 527 918 589 667 5,949 4,094 13,350
-------- -------- -------- -------- ---------- -------- ----------
Net assets....................... $178,200 $187,933 $119,776 $632,277 $1,036,639 $961,572 $2,680,729
======== ======== ======== ======== ========== ======== ==========
Net assets consist of:
Contractholders' net
payments.................. $185,991 $209,336 $127,901 $660,594 $1,079,918 $952,876 $2,794,555
Cost of insurance
withdrawals (Note 3)...... (6,456) (15,863) (7,844) (36,441) (92,319) (65,812) (230,742)
Undistributed net investment
income (loss)............. 7,520 6,631 2,276 8,124 (768) (758) (2,291)
Accumulated net realized
gain (loss) on
investments............... (226) (1,805) (146) 0 14,542 6,919 23,327
Unrealized appreciation
(depreciation) of
investments............... (8,629) (10,366) (2,411) 0 35,266 68,347 95,880
-------- -------- -------- -------- ---------- -------- ----------
Net assets....................... $178,200 $187,933 $119,776 $632,277 $1,036,639 $961,572 $2,680,729
======== ======== ======== ======== ========== ======== ==========
Number of units outstanding*..... 17,911 20,103 12,045 61,886 94,519 80,686 245,819
-------- -------- -------- -------- ---------- -------- ----------
Net asset value per unit
outstanding*................... $ 9.95 $ 9.35 $ 9.94 $ 10.22 $ 10.97 $ 11.92 $ 10.91
======== ======== ======== ======== ========== ======== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
15
<PAGE> 17
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<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)... $338,986 $217,297 $3,811,155 $636,375 $235,939 $424,087 $461,199
======== ======== ========== ======== ======== ======== ========
Investments in Enterprise
Accumulation Trust at net
asset value (Note 2)......... $343,232 $213,196 $3,931,800 $687,036 $268,253 $450,579 $483,920
Amount due from Enterprise
Accumulation Trust........... 521 639 4,505 847 812 328 883
Amount due from MONY America... 1,817 67 7,922 2,605 1,925 1,028 2,198
-------- -------- ---------- -------- -------- -------- --------
Total assets.......... 345,570 213,902 3,944,227 690,488 270,990 451,935 487,001
-------- -------- ---------- -------- -------- -------- --------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........... 1,817 67 7,922 2,605 1,925 1,028 2,198
Amount due to MONY America..... 521 639 4,505 847 812 328 883
-------- -------- ---------- -------- -------- -------- --------
Total liabilities..... 2,338 706 12,427 3,452 2,737 1,356 3,081
-------- -------- ---------- -------- -------- -------- --------
Net assets..................... $343,232 $213,196 $3,931,800 $687,036 $268,253 $450,579 $483,920
======== ======== ========== ======== ======== ======== ========
Net assets consist of:
Contractholders' net
payments................. $363,918 $228,820 $4,055,693 $676,918 $263,236 $459,055 $490,748
Cost of insurance
withdrawals (Note 3)..... (25,044) (15,158) (276,251) (46,942) (25,683) (38,872) (33,734)
Undistributed net
investment income
(loss)................... (260) 3,943 (2,684) (500) (193) 412 (273)
Accumulated net realized
gain (loss) on
investments.............. 372 (308) 34,397 6,899 (1,421) 3,492 4,458
Unrealized appreciation
(depreciation) of
investments.............. 4,246 (4,101) 120,645 50,661 32,314 26,492 22,721
-------- -------- ---------- -------- -------- -------- --------
Net assets..................... $343,232 $213,196 $3,931,800 $687,036 $268,253 $450,579 $483,920
======== ======== ========== ======== ======== ======== ========
Number of units outstanding*... 32,686 20,943 343,134 58,202 22,677 39,606 40,242
-------- -------- ---------- -------- -------- -------- --------
Net asset value per unit
outstanding*................. $ 10.50 $ 10.18 $ 11.46 $ 11.80 $ 11.83 $ 11.38 $ 12.03
======== ======== ========== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
16
<PAGE> 18
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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>
Dividend income.................. $ 7,708 $ 6,796 $ 2,391 $ 8,797 $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............... (188) (165) (115) (673) (767) (758) (2,290)
-------- -------- -------- ----------- --------- --------- ---------
Net investment gain (loss)....... 7,520 6,631 2,276 8,124 (767) (758) (2,290)
-------- -------- -------- ----------- --------- --------- ---------
Realized and unrealized gain
(loss) on investments (Note 2):
Proceeds from sales............ 36,852 51,766 15,291 1,966,233 234,732 204,027 553,551
Cost of shares sold............ (37,078) (53,571) (15,437) (1,966,233) (220,198) (197,110) (530,240)
-------- -------- -------- ----------- --------- --------- ---------
Net realized gain (loss) on
investments.................... (226) (1,805) (146) 0 14,534 6,917 23,311
Net increase (decrease) in
unrealized appreciation of
investments.................... (8,631) (10,371) (2,411) 0 35,022 68,067 95,649
-------- -------- -------- ----------- --------- --------- ---------
Net realized and unrealized gain
(loss) on investments.......... (8,857) (12,176) (2,557) 0 49,556 74,984 118,960
-------- -------- -------- ----------- --------- --------- ---------
Net increase (decrease) in net
assets resulting from
operations..................... $ (1,337) $ (5,545) $ (281) $ 8,124 $ 48,789 $ 74,226 $ 116,670
======== ======== ======== =========== ========= ========= =========
</TABLE>
See notes to financial statements.
17
<PAGE> 19
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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>
Dividend income................ $ 0 $ 4,111 $ 0 $ 0 $ 0 $ 851 $ 0
Mortality and expense risk
charges (Note 3)............. (260) (170) (2,683) (500) (193) (439) (273)
--------- -------- --------- -------- -------- -------- --------
Net investment income (loss)... (260) 3,941 (2,683) (500) (193) 412 (273)
--------- -------- --------- -------- -------- -------- --------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales.......... 135,907 73,036 681,737 94,989 71,865 62,788 84,077
Cost of shares sold.......... (135,537) (73,344) (647,366) (88,090) (73,287) (59,296) (79,622)
--------- -------- --------- -------- -------- -------- --------
Net realized gain (loss) on
investments.................. 370 (308) 34,371 6,899 (1,422) 3,492 4,455
Net increase (decrease) in
unrealized appreciation of
investments.................. 4,228 (4,104) 120,521 50,598 32,263 26,474 22,697
--------- -------- --------- -------- -------- -------- --------
Net realized and unrealized
gain (loss) on investments... 4,598 (4,412) 154,892 57,497 30,841 29,966 27,152
--------- -------- --------- -------- -------- -------- --------
Net increase (decrease) in net
assets resulting from
operations................... $ 4,338 $ (471) $ 152,209 $ 56,997 $ 30,648 $ 30,378 $ 26,879
========= ======== ========= ======== ======== ======== ========
</TABLE>
See notes to financial statements.
18
<PAGE> 20
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------
INTERMEDIATE LONG TERM
TERM BOND BOND
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 29, 1998** MONTHS ENDED DECEMBER 16, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment gain..................... $ 7,520 $ 0 $ 6,631 $ 0
Net realized gain (loss) on
investments.......................... (226) 0 (1,805) 0
Net increase (decrease) in unrealized
appreciation of investments.......... (8,631) 2 (10,371) 5
-------- ------ -------- ------
Net increase (decrease) in net assets
resulting from operations............... (1,337) 2 (5,545) 5
-------- ------ -------- ------
From unit transactions:
Net proceeds from the issuance of
units................................ 185,612 1,933 220,687 1,559
Net asset value of units redeemed or
used to meet contract obligations.... (8,006) (4) (28,750) (23)
-------- ------ -------- ------
Net increase from unit transactions....... 177,606 1,929 191,937 1,536
-------- ------ -------- ------
Net increase in net assets................ 176,269 1,931 186,392 1,541
Net assets beginning of period............ 1,931 0 1,541 0
-------- ------ -------- ------
Net assets end of period*................. $178,200 $1,931 $187,933 $1,541
======== ====== ======== ======
Units outstanding beginning of period..... 193 0 155 0
Units issued during the period............ 18,520 193 22,922 157
Units redeemed during the period.......... (802) 0 (2,974) (2)
-------- ------ -------- ------
Units outstanding end of period........... 17,911 193 20,103 155
======== ====== ======== ======
- ---------------
* Includes undistributed net investment
income of: $ 7,520 $ 0 $ 6,631 $ 0
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------
MONY SERIES FUND, INC.
----------------------------------
GOVERNMENT
SECURITIES
SUBACCOUNT
----------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 17, 1998**
JUNE 30, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment gain..................... $ 2,276 $ 0
Net realized gain (loss) on
investments.......................... (146) 0
Net increase (decrease) in unrealized
appreciation of investments.......... (2,411) 0
-------- ----
Net increase (decrease) in net assets
resulting from operations............... (281) 0
-------- ----
From unit transactions:
Net proceeds from the issuance of
units................................ 131,103 737
Net asset value of units redeemed or
used to meet contract obligations.... (11,775) (8)
-------- ----
Net increase from unit transactions....... 119,328 729
-------- ----
Net increase in net assets................ 119,047 729
Net assets beginning of period............ 729 0
-------- ----
Net assets end of period*................. $119,776 $729
======== ====
Units outstanding beginning of period..... 73 0
Units issued during the period............ 13,153 74
Units redeemed during the period.......... (1,181) (1)
-------- ----
Units outstanding end of period........... 12,045 73
======== ====
- ---------------
* Includes undistributed net investment
income of: $ 2,276 $ 0
** Commencement of operations
</TABLE>
See notes to financial statements.
19
<PAGE> 21
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
---------------------------------- ----------------------------------
MONEY
MARKET EQUITY
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 28, 1998** MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment gain (loss)............. $ 8,124 $ 0 $ (767) $ (1)
Net realized gain on investments....... 0 0 14,534 8
Net increase in unrealized appreciation
of investments...................... 0 0 35,022 244
---------- ------- ---------- -------
Net increase in net assets resulting from
operations............................. 8,124 0 48,789 251
---------- ------- ---------- -------
From unit transactions:
Net proceeds from the issuance of
units............................... 1,423,155 65,877 1,098,853 19,516
Net asset value of units redeemed or
used to meet contract obligations... (863,657) (1,222) (130,360) (410)
---------- ------- ---------- -------
Net increase from unit transactions...... 559,498 64,655 968,493 19,106
---------- ------- ---------- -------
Net increase in net assets............... 567,622 64,655 1,017,282 19,357
Net assets beginning of period........... 64,655 0 19,357 0
---------- ------- ---------- -------
Net assets end of period*................ $ 632,277 $64,655 $1,036,639 $19,357
========== ======= ========== =======
Units outstanding beginning of period.... 6,463 0 1,912 0
Units issued during the period........... 141,035 6,585 105,160 1,953
Units redeemed during the period......... (85,612) (122) (12,553) (41)
---------- ------- ---------- -------
Units outstanding end of period.......... 61,886 6,463 94,519 1,912
========== ======= ========== =======
- ---------------
* Includes undistributed net investment
income (loss) of: $ 8,124 $ 0 $ (768) $ (1)
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
SMALL COMPANY
VALUE
SUBACCOUNT
----------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH
1999 DECEMBER 31, 1998
------------- ------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment gain (loss)............. $ (758) $ 0
Net realized gain on investments....... 6,917 2
Net increase in unrealized appreciation
of investments...................... 68,067 280
-------- ------
Net increase in net assets resulting from
operations............................. 74,226 282
-------- ------
From unit transactions:
Net proceeds from the issuance of
units............................... 979,184 7,930
Net asset value of units redeemed or
used to meet contract obligations... (99,925) (125)
-------- ------
Net increase from unit transactions...... 879,259 7,805
-------- ------
Net increase in net assets............... 953,485 8,087
Net assets beginning of period........... 8,087 0
-------- ------
Net assets end of period*................ $961,572 $8,087
======== ======
Units outstanding beginning of period.... 772 0
Units issued during the period........... 89,054 784
Units redeemed during the period......... (9,140) (12)
-------- ------
Units outstanding end of period.......... 80,686 772
======== ======
- ---------------
* Includes undistributed net investment
income (loss) of: $ (758) $ 0
** Commencement of operations
</TABLE>
See notes to financial statements.
20
<PAGE> 22
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
INTERNATIONAL
MANAGED GROWTH
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 9, 1998** MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............ $ (2,290) $ (1) $ (260) $ 0
Net realized gain (loss) on
investments.......................... 23,311 16 370 2
Net increase (decrease) in unrealized
appreciation of investments.......... 95,649 231 4,228 18
---------- ------- -------- ------
Net increase (decrease) in net assets
resulting from operations............... 116,670 246 4,338 20
---------- ------- -------- ------
From unit transactions:
Net proceeds from the issuance of
units................................ 2,874,747 27,281 402,942 1,391
Net asset value of units redeemed or
used to meet contract obligations.... (337,661) (554) (65,410) (49)
---------- ------- -------- ------
Net increase from unit transactions....... 2,537,086 26,727 337,532 1,342
---------- ------- -------- ------
Net increase in net assets................ 2,653,756 26,973 341,870 1,362
Net assets beginning of period............ 26,973 0 1,362 0
---------- ------- -------- ------
Net assets end of period*................. $2,680,729 $26,973 $343,232 $1,362
========== ======= ======== ======
Units outstanding beginning of period..... 2,653 0 131 0
Units issued during the period............ 275,543 2,708 38,889 136
Units redeemed during the period.......... (32,377) (55) (6,334) (5)
---------- ------- -------- ------
Units outstanding end of period........... 245,819 2,653 32,686 131
========== ======= ======== ======
- ---------------
* Includes undistributed net investment
income (loss) of: $ (2,291) $ (1) $ (260) $ 0
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
HIGH YIELD
BOND
SUBACCOUNT
----------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 14, 1998**
JUNE 30, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)............ $ 3,941 $ 2
Net realized gain (loss) on
investments.......................... (308) 0
Net increase (decrease) in unrealized
appreciation of investments.......... (4,104) 3
-------- ------
Net increase (decrease) in net assets
resulting from operations............... (471) 5
-------- ------
From unit transactions:
Net proceeds from the issuance of
units................................ 241,681 3,481
Net asset value of units redeemed or
used to meet contract obligations.... (31,460) (40)
-------- ------
Net increase from unit transactions....... 210,221 3,441
-------- ------
Net increase in net assets................ 209,750 3,446
Net assets beginning of period............ 3,446 0
-------- ------
Net assets end of period*................. $213,196 $3,446
======== ======
Units outstanding beginning of period..... 345 0
Units issued during the period............ 23,690 349
Units redeemed during the period.......... (3,092) (4)
-------- ------
Units outstanding end of period........... 20,943 345
======== ======
- ---------------
* Includes undistributed net investment
income (loss) of: $ 3,943 $ 2
** Commencement of operations
</TABLE>
See notes to financial statements.
21
<PAGE> 23
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
GROWTH AND
GROWTH INCOME
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 9, 1998** MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment (loss).................. $ (2,683) $ (1) $ (500) $ 0
Net realized gain (loss) on
investments......................... 34,371 26 6,899 0
Net increase in unrealized appreciation
of investments...................... 120,521 124 50,598 63
---------- ------- -------- -------
Net increase in net assets resulting from
operations............................. 152,209 149 56,997 63
---------- ------- -------- -------
From unit transactions:
Net proceeds from the issuance of
units............................... 4,136,289 52,409 675,274 10,095
Net asset value of units redeemed or
used to meet contract obligations... (408,950) (306) (55,373) (20)
---------- ------- -------- -------
Net increase from unit transactions...... 3,727,339 52,103 619,901 10,075
---------- ------- -------- -------
Net increase in net assets............... 3,879,548 52,252 676,898 10,138
Net assets beginning of period........... 52,252 0 10,138 0
---------- ------- -------- -------
Net assets end of period*................ $3,931,800 $52,252 $687,036 $10,138
========== ======= ======== =======
Units outstanding beginning of period.... 5,053 0 1,012 0
Units issued during the period........... 375,413 5,083 62,277 1,014
Units redeemed during the period......... (37,332) (30) (5,087) (2)
---------- ------- -------- -------
Units outstanding end of period.......... 343,134 5,053 58,202 1,012
========== ======= ======== =======
- ---------------
* Includes undistributed net investment
income (loss) of: $ (2,684) $ (1) $ (500) $ 0
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------
SMALL COMPANY
GROWTH
SUBACCOUNT
-----------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH
1999 DECEMBER 31, 1998
------------- -------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment (loss).................. $ (193) $ 0
Net realized gain (loss) on
investments......................... (1,422) 1
Net increase in unrealized appreciation
of investments...................... 32,263 51
-------- ------
Net increase in net assets resulting from
operations............................. 30,648 52
-------- ------
From unit transactions:
Net proceeds from the issuance of
units............................... 273,917 1,456
Net asset value of units redeemed or
used to meet contract obligations... (37,759) (61)
-------- ------
Net increase from unit transactions...... 236,158 1,395
-------- ------
Net increase in net assets............... 266,806 1,447
Net assets beginning of period........... 1,447 0
-------- ------
Net assets end of period*................ $268,253 $1,447
======== ======
Units outstanding beginning of period.... 140 0
Units issued during the period........... 26,139 146
Units redeemed during the period......... (3,602) (6)
-------- ------
Units outstanding end of period.......... 22,677 140
======== ======
- ---------------
* Includes undistributed net investment
income (loss) of: $ (193) $ 0
** Commencement of operations
</TABLE>
See notes to financial statements.
22
<PAGE> 24
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
EQUITY CAPITAL
INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 9, 1998** MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).......................... $ 412 $ 0 $ (273) $ 0
Net realized gain on investments...................... 3,492 0 4,455 3
Net increase in unrealized appreciation of
investments........................................ 26,474 18 22,697 24
-------- ------- -------- ------
Net increase in net assets resulting from operations.... 30,378 18 26,879 27
-------- ------- -------- ------
From unit transactions:
Net proceeds from the issuance of units............... 454,242 11,177 494,821 8,145
Net asset value of units redeemed or used to meet
contract obligations............................... (45,222) (14) (45,903) (49)
-------- ------- -------- ------
Net increase from unit transactions..................... 409,020 11,163 448,918 8,096
-------- ------- -------- ------
Net increase in net assets.............................. 439,398 11,181 475,797 8,123
Net assets beginning of period.......................... 11,181 0 8,123 0
-------- ------- -------- ------
Net assets end of period*............................... $450,579 $11,181 $483,920 $8,123
======== ======= ======== ======
Units outstanding beginning of period................... 1,091 0 743 0
Units issued during the period.......................... 42,708 1,092 43,588 748
Units redeemed during the period........................ (4,193) (1) (4,089) (5)
-------- ------- -------- ------
Units outstanding end of period......................... 39,606 1,091 40,242 743
======== ======= ======== ======
- ---------------
* Includes undistributed net investment income (loss)
of: $ 412 $ 0 $ (273) $ 0
** Commencement of operations
</TABLE>
See notes to financial statements.
23
<PAGE> 25
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable 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.
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 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 1999 aggregated
$914,343.
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.
24
<PAGE> 26
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at June 30, 1999 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............. 170 108 65 64,655 525 295 665
Amount............. $ 1,929 $ 1,536 $ 729 $ 64,655 $ 19,113 $ 7,807 $ 26,742
-------- -------- -------- ----------- ---------- ---------- ----------
Shares acquired:
Shares............. 18,992 18,169 12,187 2,525,058 31,599 37,667 74,125
Amount............. $214,270 $243,538 $134,504 $ 2,525,058 $1,202,458 $1,082,528 $3,088,347
Shares received for
reinvestment of
dividends:
Shares............. 716 536 221 8,797 0 0 0
Amount............. $ 7,708 $ 6,796 $ 2,391 $ 8,797 $ 0 $ 0 $ 0
Shares redeemed:
Shares............. (3,270) (3,814) (1,383) (1,966,233) (6,176) (7,103) (13,277)
Amount............. $(37,078) $(53,571) $(15,437) $(1,966,233) $ (220,198) $ (197,110) $ (530,240)
-------- -------- -------- ----------- ---------- ---------- ----------
Net change:
Shares............. 16,438 14,891 11,025 567,622 25,423 30,564 60,848
Amount............. $184,900 $196,763 $121,458 $ 567,622 $ 982,260 $ 885,418 $2,558,107
-------- -------- -------- ----------- ---------- ---------- ----------
Shares end of period:
Shares............. 16,608 14,999 11,090 632,277 25,948 30,859 61,513
Amount............. $186,829 $198,299 $122,187 $ 632,277 $1,001,373 $ 893,225 $2,584,849
======== ======== ======== =========== ========== ========== ==========
</TABLE>
25
<PAGE> 27
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at June 30, 1999
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............. 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 acquired:
Shares............. 70,217 52,826 783,416 129,193 55,834 89,068 91,985
Amount............. $ 473,179 $283,087 $4,406,393 $714,390 $307,830 $471,369 $532,722
Shares received for
reinvestment of
dividends:
Shares............. 0 719 0 0 0 151 0
Amount............. $ 0 $ 4,111 $ 0 $ 0 $ 0 $ 851 $ 0
Shares redeemed:
Shares............. (20,239) (13,578) (121,228) (17,241) (13,247) (11,668) (14,629)
Amount............. $(135,537) $(73,344) $ (647,366) $(88,090) $(73,287) $(59,296) $(79,622)
--------- -------- ---------- -------- -------- -------- --------
Net change:
Shares............. 49,978 39,967 662,188 111,952 42,587 77,551 77,356
Amount............. $ 337,642 $213,854 $3,759,027 $626,300 $234,543 $412,924 $453,100
--------- -------- ---------- -------- -------- -------- --------
Shares end of period:
Shares............. 50,180 40,609 672,103 113,936 42,852 79,748 78,815
Amount............. $ 338,986 $217,297 $3,811,155 $636,375 $235,939 $424,087 $461,199
========= ======== ========== ======== ======== ======== ========
</TABLE>
26
<PAGE> 28
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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)...... $84,252 $94,170 $31,507 $ 98,226 $78,420 $87,009 $265,912
======= ======= ======= ======== ======= ======= ========
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $ 0 $ 0 $ 0 $ 0 $79,827 $92,858 $272,980
Investments in MONY Series Fund,
Inc., at net asset value (Note
2).............................. 79,863 86,618 31,110 98,226 0 0 0
Amount due from Enterprise
Accumulation Trust.............. 0 0 0 0 0 191 318
Amount due from MONY America...... 0 0 0 0 59 26 68
------- ------- ------- -------- ------- ------- --------
Total assets............. 79,863 86,618 31,110 98,226 79,886 93,075 273,366
------- ------- ------- -------- ------- ------- --------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 0 0 0 0 59 26 68
Amount due to MONY America........ 0 0 0 0 0 191 318
------- ------- ------- -------- ------- ------- --------
Total liabilities........ 0 0 0 0 59 217 386
------- ------- ------- -------- ------- ------- --------
Net assets........................ $79,863 $86,618 $31,110 $ 98,226 $79,827 $92,858 $272,980
======= ======= ======= ======== ======= ======= ========
Net assets consist of:
Contractholders' net payments... $81,365 $90,325 $31,660 $102,423 $80,565 $89,360 $270,976
Cost of insurance withdrawals
(Note 3)...................... (743) (806) (428) (5,500) (2,310) (2,497) (6,665)
Undistributed net investment
income (loss)................. 3,651 4,712 289 1,303 (49) (57) (169)
Accumulated net realized gain
(loss) on investments......... (21) (61) (14) 0 214 203 1,770
Unrealized appreciation
(depreciation) of
investments................... (4,389) (7,552) (397) 0 1,407 5,849 7,068
------- ------- ------- -------- ------- ------- --------
Net assets........................ $79,863 $86,618 $31,110 $ 98,226 $79,827 $92,858 $272,980
======= ======= ======= ======== ======= ======= ========
Number of units outstanding*...... 7,973 9,008 3,118 9,631 7,353 8,251 25,374
------- ------- ------- -------- ------- ------- --------
Net asset value per unit
outstanding*.................... $ 10.02 $ 9.62 $ 9.98 $ 10.20 $ 10.86 $ 11.25 $ 10.76
======= ======= ======= ======== ======= ======= ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
27
<PAGE> 29
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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)... $30,380 $21,011 $482,498 $232,137 $54,117 $156,680 $45,641
======= ======= ======== ======== ======= ======== =======
Investments in Enterprise
Accumulation Trust at net
asset value (Note 2)......... $31,114 $20,592 $500,815 $246,809 $62,709 $164,155 $48,862
Amount due from Enterprise
Accumulation Trust........... 127 0 13,747 0 0 0 0
Amount due from MONY America... 13 13 96 0 0 0 0
------- ------- -------- -------- ------- -------- -------
Total assets.......... 31,254 20,605 514,658 246,809 62,709 164,155 48,862
------- ------- -------- -------- ------- -------- -------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........... 13 13 96 0 0 0 0
Amount due to MONY America..... 127 0 13,747 0 0 0 0
------- ------- -------- -------- ------- -------- -------
Total liabilities..... 140 13 13,843 0 0 0 0
------- ------- -------- -------- ------- -------- -------
Net assets..................... $31,114 $20,592 $500,815 $246,809 $62,709 $164,155 $48,862
======= ======= ======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net
payments................... $30,885 $21,600 $490,086 $233,559 $56,028 $158,695 $46,478
Cost of insurance withdrawals
(Note 3)................... (469) (971) (8,808) (1,835) (2,313) (2,397) (1,056)
Undistributed net investment
income (loss).............. (25) 391 (199) (116) (48) 207 (35)
Accumulated net realized gain
(loss) on investments...... (11) (9) 1,419 529 450 175 254
Unrealized appreciation
(depreciation) of
investments................ 734 (419) 18,317 14,672 8,592 7,475 3,221
------- ------- -------- -------- ------- -------- -------
Net assets..................... $31,114 $20,592 $500,815 $246,809 $62,709 $164,155 $48,862
======= ======= ======== ======== ======= ======== =======
Number of units outstanding*... 3,153 2,033 44,935 21,235 5,449 14,727 4,410
------- ------- -------- -------- ------- -------- -------
Net asset value per unit
outstanding*................. $ 9.87 $ 10.13 $ 11.15 $ 11.62 $ 11.51 $ 11.15 $ 11.08
======= ======= ======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
28
<PAGE> 30
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 11, 1999** FEBRUARY 12, 1999** FEBRUARY 12, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Dividend income............... $ 3,711 $ 4,776 $ 303 $ 1,411
Mortality and expense risk
charges (Note 3)............ (60) (64) (14) (108)
------- ------- ----- ---------
Net investment income
(loss)...................... 3,651 4,712 289 1,303
------- ------- ----- ---------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 1,577 870 442 114,495
Cost of shares sold......... (1,598) (931) (456) (114,495)
------- ------- ----- ---------
Net realized gain (loss) on
investments................. (21) (61) (14) 0
Net increase (decrease) in
unrealized appreciation of
investments................. (4,389) (7,552) (397) 0
------- ------- ----- ---------
Net realized and unrealized
gain (loss) on
investments................. (4,410) (7,613) (411) 0
------- ------- ----- ---------
Net increase (decrease) in net
assets resulting from
operations.................. $ (759) $(2,901) $(122) $ 1,303
======= ======= ===== =========
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** JANUARY 7, 1999** JANUARY 4, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ----------------- ------------------
<S> <C> <C> <C>
Dividend income............... $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............ (49) (57) (169)
------- ------- --------
Net investment income
(loss)...................... (49) (57) (169)
------- ------- --------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 3,120 2,949 29,326
Cost of shares sold......... (2,906) (2,746) (27,556)
------- ------- --------
Net realized gain (loss) on
investments................. 214 203 1,770
Net increase (decrease) in
unrealized appreciation of
investments................. 1,407 5,849 7,068
------- ------- --------
Net realized and unrealized
gain (loss) on
investments................. 1,621 6,052 8,838
------- ------- --------
Net increase (decrease) in net
assets resulting from
operations.................. $ 1,572 $ 5,995 $ 8,669
======= ======= ========
</TABLE>
- ---------------
** Commencement of operations
See notes to financial statements.
29
<PAGE> 31
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 4, 1999** JANUARY 6, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Dividend income................. $ 0 $ 408 $ 0 $ 0
Mortality and expense risk
charges (Note 3).............. (25) (17) (199) (116)
----- ----- -------- -------
Net investment income (loss).... (25) 391 (199) (116)
----- ----- -------- -------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales........... 494 987 45,433 6,689
Cost of shares sold........... (505) (996) (44,014) (6,160)
----- ----- -------- -------
Net realized gain (loss) on
investments................... (11) (9) 1,419 529
Net increase (decrease) in
unrealized appreciation of
investments................... 734 (419) 18,317 14,672
----- ----- -------- -------
Net realized and unrealized gain
(loss) on investments......... 723 (428) 19,736 15,201
----- ----- -------- -------
Net increase (decrease) in net
assets resulting from
operations.................... $ 698 $ (37) $ 19,537 $15,085
===== ===== ======== =======
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- -------------------
<S> <C> <C> <C>
Dividend income................. $ 0 $ 311 $ 0
Mortality and expense risk
charges (Note 3).............. (48) (104) (35)
-------- ------- -------
Net investment income (loss).... (48) 207 (35)
-------- ------- -------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales........... 20,809 2,500 3,466
Cost of shares sold........... (20,359) (2,325) (3,212)
-------- ------- -------
Net realized gain (loss) on
investments................... 450 175 254
Net increase (decrease) in
unrealized appreciation of
investments................... 8,592 7,475 3,221
-------- ------- -------
Net realized and unrealized gain
(loss) on investments......... 9,042 7,650 3,475
-------- ------- -------
Net increase (decrease) in net
assets resulting from
operations.................... $ 8,994 $ 7,857 $ 3,440
======== ======= =======
</TABLE>
- ---------------
** Commencement of operations
See notes to financial statements.
30
<PAGE> 32
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 11, 1999** FEBRUARY 12, 1999** FEBRUARY 12, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ------------------- ------------------- ------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ 3,651 $ 4,712 $ 289 $ 1,303
Net realized gain (loss) on
investments.................. (21) (61) (14) 0
Net increase (decrease) in
unrealized appreciation of
investments.................. (4,389) (7,552) (397) 0
------- ------- ------- --------
Net increase (decrease) in net
assets resulting from
operations..................... (759) (2,901) (122) 1,303
------- ------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 81,559 90,325 31,660 184,205
Net asset value of units
redeemed or used to meet
contract obligations......... (937) (806) (428) (87,282)
------- ------- ------- --------
Net increase from unit
transactions................... 80,622 89,519 31,232 96,923
------- ------- ------- --------
Net increase in net assets....... 79,863 86,618 31,110 98,226
Net assets beginning of period... 0 0 0 0
------- ------- ------- --------
Net assets end of period*........ $79,863 $86,618 $31,110 $ 98,226
======= ======= ======= ========
Units outstanding beginning of
period......................... 0 0 0 0
Units issued during the period... 8,067 9,091 3,161 18,241
Units redeemed during the
period......................... (94) (83) (43) (8,610)
------- ------- ------- --------
Units outstanding end of
period......................... 7,973 9,008 3,118 9,631
======= ======= ======= ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 3,651 $ 4,712 $ 289 $ 1,303
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** JANUARY 7, 1999** JANUARY 4, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ----------------- -----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income (loss)... $ (49) $ (57) $ (169)
Net realized gain (loss) on
investments.................. 214 203 1,770
Net increase (decrease) in
unrealized appreciation of
investments.................. 1,407 5,849 7,068
------- ------- --------
Net increase (decrease) in net
assets resulting from
operations..................... 1,572 5,995 8,669
------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 80,758 89,360 279,680
Net asset value of units
redeemed or used to meet
contract obligations......... (2,503) (2,497) (15,369)
------- ------- --------
Net increase from unit
transactions................... 78,255 86,863 264,311
------- ------- --------
Net increase in net assets....... 79,827 92,858 272,980
Net assets beginning of period... 0 0 0
------- ------- --------
Net assets end of period*........ $79,827 $92,858 $272,980
======= ======= ========
Units outstanding beginning of
period......................... 0 0 0
Units issued during the period... 7,591 8,485 26,886
Units redeemed during the
period......................... (238) (234) (1,512)
------- ------- --------
Units outstanding end of
period......................... 7,353 8,251 25,374
======= ======= ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (49) $ (57) $ (169)
** Commencement of operations
</TABLE>
See notes to financial statements.
31
<PAGE> 33
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 4, 1999** JANUARY 6, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- ----------------- ------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ (25) $ 391 $ (199) $ (116)
Net realized gain (loss) on
investments................... (11) (9) 1,419 529
Net increase (decrease) in
unrealized appreciation of
investments................... 734 (419) 18,317 14,672
------- ------- -------- --------
Net increase (decrease) in net
assets resulting from
operations...................... 698 (37) 19,537 15,085
------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 30,885 21,600 499,200 233,559
Net asset value of units
redeemed or used to meet
contract obligations.......... (469) (971) (17,922) (1,835)
------- ------- -------- --------
Net increase from unit
transactions.................... 30,416 20,629 481,278 231,724
------- ------- -------- --------
Net increase in net assets........ 31,114 20,592 500,815 246,809
Net assets beginning of period.... 0 0 0 0
------- ------- -------- --------
Net assets end of period*......... $31,114 $20,592 $500,815 $246,809
======= ======= ======== ========
Units outstanding beginning of
period.......................... 0 0 0 0
Units issued during the period.... 3,201 2,129 46,617 21,403
Units redeemed during the
period.......................... (48) (96) (1,682) (168)
------- ------- -------- --------
Units outstanding end of period... 3,153 2,033 44,935 21,235
======= ======= ======== ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (25) $ 391 $ (199) $ (116)
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- ------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income (loss).... $ (48) $ 207 $ (35)
Net realized gain (loss) on
investments................... 450 175 254
Net increase (decrease) in
unrealized appreciation of
investments................... 8,592 7,475 3,221
------- -------- -------
Net increase (decrease) in net
assets resulting from
operations...................... 8,994 7,857 3,440
------- -------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 60,890 158,695 46,478
Net asset value of units
redeemed or used to meet
contract obligations.......... (7,175) (2,397) (1,056)
------- -------- -------
Net increase from unit
transactions.................... 53,715 156,298 45,422
------- -------- -------
Net increase in net assets........ 62,709 164,155 48,862
Net assets beginning of period.... 0 0 0
------- -------- -------
Net assets end of period*......... $62,709 $164,155 $48,862
======= ======== =======
Units outstanding beginning of
period.......................... 0 0 0
Units issued during the period.... 6,204 14,950 4,510
Units redeemed during the
period.......................... (755) (223) (100)
------- -------- -------
Units outstanding end of period... 5,449 14,727 4,410
======= ======== =======
- ---------------
* Includes undistributed net
investment income (loss) of: $ (48) $ 207 $ (35)
** Commencement of operations
</TABLE>
See notes to financial statements.
32
<PAGE> 34
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable 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 Estate Master) is
presented here.
There are currently fourteen MONY Custom Estate 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
Estate Master commenced operations during 1999. The Funds are registered under
the 1940 Act as open end, diversified, management investment companies.
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 Estate Master Subaccounts for 1999 aggregated
$36,799.
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 Estate 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.
33
<PAGE> 35
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at June 30, 1999 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...................... 7,240 6,603 2,894 211,310 2,080 3,079 6,947
Amount...................... $82,139 $90,325 $31,660 $ 211,310 $81,326 $89,755 $293,468
Shares received for
reinvestment of dividends:
Shares...................... 345 377 28 1,411 0 0 0
Amount...................... $ 3,711 $ 4,776 $ 303 $ 1,411 $ 0 $ 0 $ 0
Shares redeemed:
Shares...................... (142) (67) (41) (114,495) (82) (99) (683)
Amount...................... $(1,598) $ (931) $ (456) $(114,495) $(2,906) $(2,746) $(27,556)
------- ------- ------- --------- ------- ------- --------
Net change:
Shares...................... 7,443 6,913 2,881 98,226 1,998 2,980 6,264
Amount...................... $84,252 $94,170 $31,507 $ 98,226 $78,420 $87,009 $265,912
------- ------- ------- --------- ------- ------- --------
Shares end of period:
Shares...................... 7,443 6,913 2,881 98,226 1,998 2,980 6,264
Amount...................... $84,252 $94,170 $31,507 $ 98,226 $78,420 $87,009 $265,912
======= ======= ======= ========= ======= ======= ========
</TABLE>
34
<PAGE> 36
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at June 30, 1999
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..................... 4,622 4,030 93,588 42,124 13,855 29,458 8,539
Amount..................... $30,885 $21,599 $526,512 $238,297 $ 74,476 $158,694 $48,853
Shares received for
reinvestment of dividends:
Shares..................... 0 77 0 0 0 55 0
Amount..................... $ 0 $ 408 $ 0 $ 0 $ 0 $ 311 $ 0
Shares redeemed:
Shares..................... (73) (185) (7,979) (1,193) (3,838) (459) (581)
Amount..................... $ (505) $ (996) $(44,014) $ (6,160) $ (20,359) $ (2,325) $(3,212)
------- ------- -------- -------- --------- -------- -------
Net change:
Shares..................... 4,549 3,922 85,609 40,931 10,017 29,054 7,958
Amount..................... $30,380 $21,011 $482,498 $232,137 $ 54,117 $156,680 $45,641
------- ------- -------- -------- --------- -------- -------
Shares end of period:
Shares..................... 4,549 3,922 85,609 40,931 10,017 29,054 7,958
Amount..................... $30,380 $21,011 $482,498 $232,137 $ 54,117 $156,680 $45,641
======= ======= ======== ======== ========= ======== =======
</TABLE>
35
<PAGE> 37
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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).......................... $2,240,947 $807,314 $19,042,714 $1,476,423
========== ======== =========== ==========
Investments in MONY Series Fund, Inc. at net asset
value (Note 2)...................................... $2,240,947 $771,258 $17,111,793 $1,447,700
Amount due from MONY America.......................... 3,307 0 0 0
Amount due from MONY Series Fund, Inc................. 25 0 0 0
---------- -------- ----------- ----------
Total assets........................................ 2,244,279 771,258 17,111,793 1,447,700
---------- -------- ----------- ----------
LIABILITIES
Amount due to MONY America............................ 25 0 0 0
Amount due to MONY Series Fund, Inc................... 3,307 0 0 0
---------- -------- ----------- ----------
Total liabilities................................... 3,332 0 0 0
---------- -------- ----------- ----------
Net assets............................................ $2,240,947 $771,258 $17,111,793 $1,447,700
========== ======== =========== ==========
Net assets consist of:
Contractholders' net payments....................... $2,608,286 $777,104 $18,381,616 $1,457,391
Cost of insurance and mortality & expense risk
withdrawals (Note 3)............................. (622,670) (12,749) (360,304) (37,363)
Undistributed net investment income................. 255,331 43,049 1,037,304 55,001
Accumulated net realized gain (loss) on
investments...................................... 0 (90) (15,902) 1,394
Unrealized depreciation of investments.............. 0 (36,056) (1,930,921) (28,723)
---------- -------- ----------- ----------
Net assets............................................ $2,240,947 $771,258 $17,111,793 $1,447,700
========== ======== =========== ==========
Number of units outstanding*.......................... 204,867 72,739 1,655,441 137,073
---------- -------- ----------- ----------
Net asset value per unit outstanding*................. $ 10.94 $ 10.60 $ 10.34 $ 10.56
========== ======== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
<PAGE> 38
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $1,272,512 $395,980 $1,082,754 $317,566 $18,507,788
========== ======== ========== ======== ===========
Investments in Enterprise Accumulation
Trust at net asset value (Note 2)...... $1,320,293 $427,908 $1,080,942 $323,002 $17,906,923
---------- -------- ---------- -------- -----------
Net assets............................... $1,320,293 $427,908 $1,080,942 $323,002 $17,906,923
========== ======== ========== ======== ===========
Net assets consist of:
Contractholders' net payments.......... $1,282,205 $396,020 $1,033,228 $313,624 $18,290,636
Cost of insurance and mortality &
expense risk withdrawals (Note 3)... (20,961) (20,202) (37,811) (11,858) (376,452)
Undistributed net investment income.... 1,962 44,291 86,341 14,276 622,136
Accumulated net realized gain (loss) on
investments......................... 9,306 (24,129) 996 1,524 (28,532)
Unrealized appreciation (depreciation)
of investments...................... 47,781 31,928 (1,812) 5,436 (600,865)
---------- -------- ---------- -------- -----------
Net assets............................... $1,320,293 $427,908 $1,080,942 $323,002 $17,906,923
========== ======== ========== ======== ===========
Number of units outstanding*............. 102,230 30,446 89,284 30,511 1,609,222
---------- -------- ---------- -------- -----------
Net asset value per unit outstanding*.... $ 12.91 $ 14.05 $ 12.11 $ 10.59 $ 11.13
========== ======== ========== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
<PAGE> 39
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
------------------------------------------ ------------------------------------------
CAPITAL SMALL COMPANY STOCK HARD WORLDWIDE WORLDWIDE
APPRECIATION STOCK INDEX ASSETS BOND EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ----------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)... $1,635,970 $389,457 $22,825,439 $1,847 $29,658 $29,632
========== ======== =========== ====== ======= =======
Investments in Dreyfus at net
asset value (Note 2)......... $1,778,706 $411,523 $24,943,247 $ 0 $ 0 $ 0
Investments in Van Eck
Worldwide Insurance Trust at
net asset value (Note 2)..... 0 0 0 1,933 28,244 39,383
---------- -------- ----------- ------ ------- -------
Net assets..................... $1,778,706 $411,523 $24,943,247 $1,933 $28,244 $39,383
========== ======== =========== ====== ======= =======
Net assets consist of:
Contractholders' net
payments................... $1,655,168 $410,645 $22,754,687 $1,886 $29,295 $39,545
Cost of insurance and
mortality & expense risk
withdrawals (Note 3)....... (35,656) (18,479) (271,091) (34) (820) (2,823)
Undistributed net investment
income..................... 4,060 1,046 184,576 3 1,150 197
Accumulated net realized gain
(loss) on investments...... 12,398 (3,755) 157,267 (8) 33 (7,287)
Unrealized appreciation
(depreciation) of
investments................ 142,736 22,066 2,117,808 86 (1,414) 9,751
---------- -------- ----------- ------ ------- -------
Net assets..................... $1,778,706 $411,523 $24,943,247 $1,933 $28,244 $39,383
========== ======== =========== ====== ======= =======
Number of units outstanding*... 124,632 43,963 1,664,308 198 2,734 5,819
---------- -------- ----------- ------ ------- -------
Net asset value per unit
outstanding*................. $ 14.27 $ 9.36 $ 14.99 $ 9.76 $ 10.33 $ 6.77
========== ======== =========== ====== ======= =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
<PAGE> 40
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------------
T. ROWE PRICE
--------------------------------------------------------------------------------------
EQUITY PRIME INTERNATIONAL LIMITED NEW AMERICA PERSONAL STRATEGY
INCOME RESERVE STOCK TERM GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------- ---------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $560,760 $98,553 $66,442 $ 912 $157,205 $245,863
======== ======= ======= ===== ======== ========
Investments in T. Rowe Price at net
asset value (Note 2)............. $598,973 $98,553 $68,246 $ 889 $175,457 $251,853
-------- ------- ------- ----- -------- --------
Net assets......................... $598,973 $98,553 $68,246 $ 889 $175,457 $251,853
======== ======= ======= ===== ======== ========
Net assets consist of:
Contractholders' net payments.... $564,963 $97,608 $68,116 $ 916 $161,195 $239,687
Cost of insurance and mortality &
expense risk withdrawals (Note
3)............................. (10,827) (684) (2,012) (23) (5,691) (2,650)
Undistributed net investment
income......................... 5,564 1,629 235 20 953 8,860
Accumulated net realized gain
(loss) on investments.......... 1,060 0 103 (1) 748 (34)
Unrealized appreciation
(depreciation) of
investments.................... 38,213 0 1,804 (23) 18,252 5,990
-------- ------- ------- ----- -------- --------
Net assets......................... $598,973 $98,553 $68,246 $ 889 $175,457 $251,853
======== ======= ======= ===== ======== ========
Number of units outstanding*....... 52,389 9,674 6,237 89 14,034 22,972
-------- ------- ------- ----- -------- --------
Net asset value per unit
outstanding*..................... $ 11.43 $ 10.19 $ 10.94 $9.96 $ 12.50 $ 10.96
======== ======= ======= ===== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
<PAGE> 41
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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>
Dividend income......................................... $ 192,522 $ 35,406 $ 1,028,956 $ 36,509
------------ -------- ----------- --------
Realized and unrealized gain (loss) on investments (Note
2):
Proceeds from sales................................... 72,747,383 17,216 628,494 61,562
Cost of shares sold................................... (72,747,383) (17,250) (644,466) (60,703)
------------ -------- ----------- --------
Net realized gain (loss) on investments................. 0 (34) (15,972) 859
Net decrease in unrealized appreciation of
investments........................................... 0 (41,511) (1,942,071) (42,052)
------------ -------- ----------- --------
Net realized and unrealized loss on investments......... 0 (41,545) (1,958,043) (41,193)
------------ -------- ----------- --------
Net increase (decrease) in net assets resulting from
operations............................................ $ 192,522 $ (6,139) $ (929,087) $ (4,684)
============ ======== =========== ========
</TABLE>
See notes to financial statements.
<PAGE> 42
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income................................... $ 0 $ 0 $ 0 $ 0 $ 590,574
-------- --------- -------- -------- ---------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales............................. 73,708 418,338 48,118 20,127 676,531
Cost of shares sold............................. (70,684) (443,888) (48,228) (18,857) (704,718)
-------- --------- -------- -------- ---------
Net realized gain (loss) on investments........... 3,024 (25,550) (110) 1,270 (28,187)
Net increase (decrease) in unrealized appreciation
of investments.................................. 47,543 56,055 72,133 2,613 (574,005)
-------- --------- -------- -------- ---------
Net realized and unrealized gain (loss) on
investments..................................... 50,567 30,505 72,023 3,883 (602,192)
-------- --------- -------- -------- ---------
Net increase (decrease) in net assets resulting
from operations................................. $ 50,567 $ 30,505 $ 72,023 $ 3,883 $ (11,618)
======== ========= ======== ======== =========
</TABLE>
See notes to financial statements.
<PAGE> 43
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------------
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
----------------------------------------- ------------------------------------------
CAPITAL SMALL COMPANY STOCK HARD WORLDWIDE WORLDWIDE
APPRECIATION STOCK INDEX ASSETS BOND EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ---------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income....................... $ 70 $ 0 $ 144,438 $ 3 $ 1,150 $ 0
-------- -------- ---------- ---- ------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 41,640 21,385 534,333 32 766 8,457
Cost of shares sold................. (31,288) (24,019) (402,300) (35) (763) (11,238)
-------- -------- ---------- ---- ------- --------
Net realized gain (loss) on
investments......................... 10,352 (2,634) 132,033 (3) 3 (2,781)
Net increase (decrease) in unrealized
appreciation of investments......... 75,588 16,137 1,485,471 111 (2,878) 15,333
-------- -------- ---------- ---- ------- --------
Net realized and unrealized gain
(loss) on investments............... 85,940 13,503 1,617,504 108 (2,875) 12,552
-------- -------- ---------- ---- ------- --------
Net increase (decrease) in net assets
resulting from operations........... $ 86,010 $ 13,503 $1,761,942 $111 $(1,725) $ 12,552
======== ======== ========== ==== ======= ========
</TABLE>
See notes to financial statements.
<PAGE> 44
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED)(CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------
T. ROWE PRICE
------------------------------------------------
EQUITY PRIME INTERNATIONAL
INCOME RESERVE STOCK
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ----------------- -------------
FOR THE SIX FOR THE PERIOD FOR THE SIX
MONTHS ENDED FEBRUARY 1, 1999* MONTHS ENDED
JUNE 30, THROUGH JUNE 30,
1999 JUNE 30, 1999 1999
------------ ----------------- -------------
<S> <C> <C> <C>
Dividend income............. $ 3,921 $ 1,629 $ 0
-------- ------- -------
Realized and unrealized gain
(loss) on investments
(Note 2):
Proceeds from sales....... 20,075 5,416 2,168
Cost of shares sold....... (19,027) (5,416) (2,064)
-------- ------- -------
Net realized gain (loss) on
investments............... 1,048 0 104
Net increase (decrease) in
unrealized appreciation of
investments............... 39,317 0 1,247
-------- ------- -------
Net realized and unrealized
gain (loss) on
investments............... 40,365 0 1,351
-------- ------- -------
Net increase (decrease) in
net assets resulting from
operations................ $ 44,286 $ 1,629 $ 1,351
======== ======= =======
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
----------------------------------------------------
T. ROWE PRICE
----------------------------------------------------
LIMITED TERM NEW AMERICA PERSONAL STRATEGY
BOND GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------ -----------------
FOR THE PERIOD FOR THE SIX FOR THE SIX
FEBRUARY 1, 1999* MONTHS ENDED MONTHS ENDED
THROUGH JUNE 30, JUNE 30,
JUNE 30, 1999 1999 1999
----------------- ------------ -----------------
<S> <C> <C> <C>
Dividend income............. $ 20 $ 0 $ 8,488
---- ------- -------
Realized and unrealized gain
(loss) on investments
(Note 2):
Proceeds from sales....... 45 6,692 4,062
Cost of shares sold....... (46) (5,954) (4,099)
---- ------- -------
Net realized gain (loss) on
investments............... (1) 738 (37)
Net increase (decrease) in
unrealized appreciation of
investments............... (23) 14,030 6,063
---- ------- -------
Net realized and unrealized
gain (loss) on
investments............... (24) 14,768 6,026
---- ------- -------
Net increase (decrease) in
net assets resulting from
operations................ $ (4) $14,768 $14,514
==== ======= =======
</TABLE>
* Commencement of operations.
See notes to financial statements.
<PAGE> 45
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
MONEY INTERMEDIATE LONG TERM
MARKET TERM BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------------- ------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE PERIOD FOR THE SIX
MONTHS ENDED ENDED MONTHS ENDED JANUARY 23, 1998** MONTHS ENDED
JUNE 30, DECEMBER 31, JUNE 30, THROUGH JUNE 30,
1999 1998 1999 DECEMBER 31, 1998 1999
------------ ------------ ------------ ------------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 192,522 $ 49,821 $ 35,406 $ 7,643 $ 1,028,956
Net realized gain (loss) on
investments.................. 0 0 (34) (56) (15,972)
Net increase (decrease) in
unrealized appreciation of
investments.................. 0 0 (41,511) 5,455 (1,942,071)
------------ ----------- -------- -------- -----------
Net increase (decrease) in net
assets resulting from
operations..................... 192,522 49,821 (6,139) 13,042 (929,087)
------------ ----------- -------- -------- -----------
From unit transactions:
Net proceeds from the issuance
of units..................... 58,344,961 6,078,380 486,151 296,772 18,180,378
Net asset value of units
redeemed or used to meet
contract obligations......... (58,982,415) (4,286,177) (13,287) (5,281) (476,653)
------------ ----------- -------- -------- -----------
Net increase (decrease) from unit
transactions................... (637,454) 1,792,203 472,864 291,491 17,703,725
------------ ----------- -------- -------- -----------
Net increase (decrease) in net
assets......................... (444,932) 1,842,024 466,725 304,533 16,774,638
Net assets beginning of period... 2,685,879 843,855 304,533 0 337,155
------------ ----------- -------- -------- -----------
Net assets end of period*........ $ 2,240,947 $ 2,685,879 $771,258 $304,533 $17,111,793
============ =========== ======== ======== ===========
Units outstanding beginning of
period......................... 251,238 83,085 28,549 0 30,651
Units issued during the period... 6,654,464 494,235 45,764 29,060 1,683,650
Units redeemed during the
period......................... (6,700,835) (326,082) (1,574) (511) (58,860)
------------ ----------- -------- -------- -----------
Units outstanding end of
period......................... 204,867 251,238 72,739 28,549 1,655,441
============ =========== ======== ======== ===========
- ---------------
* Includes undistributed net
investment income of: $ 255,331 $ 62,809 $ 43,049 $ 7,643 $ 1,037,304
** Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------
LONG TERM GOVERNMENT
BOND SECURITIES
SUBACCOUNT SUBACCOUNT
------------------ ---------------------------------
FOR THE PERIOD FOR THE SIX FOR THE PERIOD
JANUARY 23, 1998** MONTHS ENDED FEBRUARY 9, 1998**
THROUGH JUNE 30, THROUGH
DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------------ ------------ ------------------
(UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income.......... $ 8,348 $ 36,509 $ 18,492
Net realized gain (loss) on
investments.................. 70 859 535
Net increase (decrease) in
unrealized appreciation of
investments.................. 11,150 (42,052) 13,329
-------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations..................... 19,568 (4,684) 32,356
-------- ---------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 323,690 597,786 886,032
Net asset value of units
redeemed or used to meet
contract obligations......... (6,103) (21,954) (41,836)
-------- ---------- --------
Net increase (decrease) from unit
transactions................... 317,587 575,832 844,196
-------- ---------- --------
Net increase (decrease) in net
assets......................... 337,155 571,148 876,552
Net assets beginning of period... 0 876,552 0
-------- ---------- --------
Net assets end of period*........ $337,155 $1,447,700 $876,552
======== ========== ========
Units outstanding beginning of
period......................... 0 82,700 0
Units issued during the period... 31,230 60,084 86,711
Units redeemed during the
period......................... (579) (5,711) (4,011)
-------- ---------- --------
Units outstanding end of
period......................... 30,651 137,073 82,700
======== ========== ========
- ---------------
* Includes undistributed net
investment income of: $ 8,348 $ 55,001 $ 18,492
** Commencement of operations.
</TABLE>
See notes to financial statements.
<PAGE> 46
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 0 $ 1,531 $ 0 $ 26,454 $ 0 $ 67,233
Net realized gain (loss) on
investments.................... 3,024 6,241 (25,550) 1,253 (110) 966
Net increase (decrease) in
unrealized appreciation of
investments.................... 47,543 (12) 56,055 (13,120) 72,133 (57,275)
---------- -------- --------- -------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations....................... 50,567 7,760 30,505 14,587 72,023 10,924
---------- -------- --------- -------- ---------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,256,672 59,447 362,360 230,882 199,279 442,750
Net asset value of units redeemed
or used to meet contract
obligations.................... (20,842) (46,311) (395,909) (24,242) (42,675) (22,989)
---------- -------- --------- -------- ---------- --------
Net increase (decrease) from unit
transactions..................... 1,235,830 13,136 (33,549) 206,640 156,604 419,761
---------- -------- --------- -------- ---------- --------
Net increase (decrease) in net
assets........................... 1,286,397 20,896 (3,044) 221,227 228,627 430,685
Net assets beginning of period.... 33,896 13,000 430,952 209,725 852,315 421,630
---------- -------- --------- -------- ---------- --------
Net assets end of period*......... $1,320,293 $ 33,896 $ 427,908 $430,952 $1,080,942 $852,315
========== ======== ========= ======== ========== ========
Units outstanding beginning of
period........................... 2,848 1,232 34,921 18,628 75,641 40,391
Units issued during the period.... 105,438 5,434 29,488 18,280 17,129 37,287
Units redeemed during the
period........................... (6,056) (3,818) (33,963) (1,987) (3,486) (2,037)
---------- -------- --------- -------- ---------- --------
Units outstanding end of period... 102,230 2,848 30,446 34,921 89,284 75,641
========== ======== ========= ======== ========== ========
- ---------------
* Includes undistributed net
investment income of: $ 1,962 $ 1,962 $ 44,291 $ 44,291 $ 86,341 $ 86,341
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $ 0 $ 11,028 $ 590,574 $ 29,756
Net realized gain (loss) on
investments.................... 1,270 314 (28,187) (362)
Net increase (decrease) in
unrealized appreciation of
investments.................... 2,613 5,752 (574,005) (26,236)
-------- -------- ----------- --------
Net increase (decrease) in net
assets resulting from
operations....................... 3,883 17,094 (11,618) 3,158
-------- -------- ----------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 96,745 120,360 18,065,147 232,444
Net asset value of units redeemed
or used to meet contract
obligations.................... (6,146) (18,780) (526,318) (12,715)
-------- -------- ----------- --------
Net increase (decrease) from unit
transactions..................... 90,599 101,580 17,538,829 219,729
-------- -------- ----------- --------
Net increase (decrease) in net
assets........................... 94,482 118,674 17,527,211 222,887
Net assets beginning of period.... 228,520 109,846 379,712 156,825
-------- -------- ----------- --------
Net assets end of period*......... $323,002 $228,520 $17,906,923 $379,712
======== ======== =========== ========
Units outstanding beginning of
period........................... 21,906 12,091 34,788 14,882
Units issued during the period.... 10,514 11,665 1,634,259 21,095
Units redeemed during the
period........................... (1,909) (1,850) (59,825) (1,189)
-------- -------- ----------- --------
Units outstanding end of period... 30,511 21,906 1,609,222 34,788
======== ======== =========== ========
- ---------------
* Includes undistributed net
investment income of: $ 14,276 $ 14,276 $ 622,136 $ 31,562
</TABLE>
See notes to financial statements.
<PAGE> 47
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------------
DREYFUSS
---------------------------------------------------------------------------------------------
CAPITAL SMALL COMPANY STOCK
APPRECIATION STOCK INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------------- --------------------------
FOR THE PERIOD
FOR THE SIX FOR THE YEAR FOR THE SIX FEBRUARY 13, 1998** FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED THROUGH MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............... $ 70 $ 2,695 $ 0 $ 1,046 $ 144,438 $ 39,642
Net realized gain (loss) on
investments....................... 10,352 2,055 (2,634) (1,121) 132,033 25,220
Net increase (decrease) in
unrealized appreciation of
investments....................... 75,588 68,575 16,137 5,929 1,485,471 632,283
---------- -------- -------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations........... 86,010 73,325 13,503 5,854 1,761,942 697,145
---------- -------- -------- -------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of
units............................. 1,239,449 265,531 110,866 296,497 19,526,043 3,380,123
Net asset value of units redeemed or
used to meet contract
obligations....................... (27,178) (14,387) (8,525) (6,672) (247,288) (187,687)
---------- -------- -------- -------- ----------- -----------
Net increase from unit
transactions........................ 1,212,271 251,144 102,341 289,825 19,278,755 3,192,436
---------- -------- -------- -------- ----------- -----------
Net increase in net assets........... 1,298,281 324,469 115,844 295,679 21,040,697 3,889,581
Net assets beginning of period....... 480,425 155,956 295,679 0 3,902,550 12,969
---------- -------- -------- -------- ----------- -----------
Net assets end of period*............ $1,778,706 $480,425 $411,523 $295,679 $24,943,247 $3,902,550
========== ======== ======== ======== =========== ===========
Units outstanding beginning of
period.............................. 36,191 15,519 32,362 0 291,990 1,244
Units issued during the period....... 91,428 22,391 13,954 33,108 1,409,669 306,624
Units redeemed during the period..... (2,987) (1,719) (2,353) (746) (37,351) (15,878)
---------- -------- -------- -------- ----------- -----------
Units outstanding end of period...... 124,632 36,191 43,963 32,362 1,664,308 291,990
========== ======== ======== ======== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 4,060 $ 3,990 $ 1,046 $ 1,046 $ 184,576 $ 40,138
** Commencement of operations
<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 SIX JUNE 15, 1998** FOR THE SIX BRUARY 13, 1998** FOR THE SIX FOR THE YEAR
MONTHS ENDED THROUGH MONTHS ENDED THROUGH MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ----------------- ------------ ----------------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............... $ 3 $ 0 $ 1,150 $ 0 $ 0 $ 197
Net realized gain (loss) on
investments....................... (3) (5) 3 30 (2,781) (4,445)
Net increase (decrease) in
unrealized appreciation of
investments....................... 111 (25) (2,878) 1,464 15,333 (1,662)
------ ---- ------- ------- ------- -------
Net increase (decrease) in net assets
resulting from operations........... 111 (30) (1,725) 1,494 12,552 (5,910)
------ ---- ------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units............................. 1,642 249 9,579 19,806 8,917 22,510
Net asset value of units redeemed or
used to meet contract
obligations....................... (31) (8) (429) (481) (7,569) (3,996)
------ ---- ------- ------- ------- -------
Net increase from unit
transactions........................ 1,611 241 9,150 19,325 1,348 18,514
------ ---- ------- ------- ------- -------
Net increase in net assets........... 1,722 211 7,425 20,819 13,900 12,604
Net assets beginning of period....... 211 0 20,819 25,483 12,879
------ ---- ------- ------- ------- -------
Net assets end of period*............ $1,933 $211 $28,244 $20,819 $39,383 $25,483
====== ==== ======= ======= ======= =======
Units outstanding beginning of
period.............................. 26 0 1,873 0 5,495 1,829
Units issued during the period....... 175 27 933 1,919 1,751 4,961
Units redeemed during the period..... (3) (1) (72) (46) (1,427) (1,295)
------ ---- ------- ------- ------- -------
Units outstanding end of period...... 198 26 2,734 1,873 5,819 5,495
====== ==== ======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 3 $ 0 $ 1,150 $ 0 $ 197 $ 197
** Commencement of operations
</TABLE>
See notes to financial statements.
<PAGE> 48
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------
T. ROWE PRICE
-----------------------------------------------------------------------
EQUITY PRIME INTERNATIONAL
INCOME RESERVE STOCK
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------------- ------------------ ------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX NOVEMBER 19, 1998** FEBRUARY 1, 1999** FOR THE SIX
MONTHS ENDED THROUGH THROUGH MONTHS ENDED
JUNE 30, DECEMBER 31, JUNE 30, JUNE 30,
1999 1998 1999 1999
------------ -------------------- ------------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income..................... $ 3,921 $ 1,643 $ 1,629 $ 0
Net realized gain (loss) on investments... 1,048 12 0 104
Net increase (decrease) in unrealized
appreciation of investments............. 39,317 (1,104) 0 1,247
-------- ------- -------- -------
Net increase (decrease) in net assets
resulting from operations................. 44,286 551 1,629 1,351
-------- ------- -------- -------
From unit transactions:
Net proceeds from the issuance of units... 523,915 49,656 102,246 53,947
Net asset value of units redeemed or used
to meet contract obligations............ (18,612) (823) (5,322) (2,101)
-------- ------- -------- -------
Net increase from unit transactions........ 505,303 48,833 96,924 51,846
-------- ------- -------- -------
Net increase in net assets................. 549,589 49,384 98,553 53,197
Net assets beginning of period............. 49,384 0 0 15,049
-------- ------- -------- -------
Net assets end of period*.................. $598,973 $49,384 $ 98,553 $68,246
======== ======= ======== =======
Units outstanding beginning of period...... 4,853 0 0 1,427
Units issued during the period............. 49,302 4,934 10,207 5,013
Units redeemed during the period........... (1,766) (81) (533) (203)
-------- ------- -------- -------
Units outstanding end of period............ 52,389 4,853 9,674 6,237
======== ======= ======== =======
- ---------------
* Includes undistributed net investment
income of: $ 5,564 $ 1,643 $ 1,629 $ 235
** Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------
T. ROWE PRICE
-----------------------------------------------------------------------------
INTERNATIONAL
STOCK TERM GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------ ----------------------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1998** FEBRUARY 1, 1999** FOR THE SIX FOR THE PERIOD
THROUGH THROUGH MONTHS ENDED NOVEMBER 19, 1998**
DECEMBER 31, JUNE 30, JUNE 30, THROUGH
1998 1999 1999 DECEMBER 31, 1998
------------------- ------------------ ------------ -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income..................... $ 235 $ 20 $ 0 $ 953
Net realized gain (loss) on investments... (1) (1) 738 10
Net increase (decrease) in unrealized
appreciation of investments............. 557 (23) 14,030 4,222
------- ---- -------- -------
Net increase (decrease) in net assets
resulting from operations................. 791 (4) 14,768 5,185
------- ---- -------- -------
From unit transactions:
Net proceeds from the issuance of units... 14,497 921 118,494 43,761
Net asset value of units redeemed or used
to meet contract obligations............ (239) (28) (6,025) (726)
------- ---- -------- -------
Net increase from unit transactions........ 14,258 893 112,469 43,035
------- ---- -------- -------
Net increase in net assets................. 15,049 889 127,237 48,220
Net assets beginning of period............. 0 0 48,220 0
------- ---- -------- -------
Net assets end of period*.................. $15,049 $889 $175,457 $48,220
======= ==== ======== =======
Units outstanding beginning of period...... 0 0 4,282 0
Units issued during the period............. 1,451 94 10,332 4,354
Units redeemed during the period........... (24) (5) (580) (72)
------- ---- -------- -------
Units outstanding end of period............ 1,427 89 14,034 4,282
======= ==== ======== =======
- ---------------
* Includes undistributed net investment
income of: $ 235 $ 20 $ 953 $ 953
** Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
----------------------------------
T. ROWE PRICE
----------------------------------
PERSONAL STRATEGY
BALANCE
SUBACCOUNT
----------------------------------
FOR THE PERIOD
FOR THE SIX NOVEMBER 19, 1998**
MONTHS ENDED THROUGH
JUNE 30, DECEMBER 31,
1999 1998
------------ -------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income..................... $ 8,488 $ 372
Net realized gain (loss) on investments... (37) 3
Net increase (decrease) in unrealized
appreciation of investments............. 6,063 (73)
-------- ------
Net increase (decrease) in net assets
resulting from operations................. 14,514 302
-------- ------
From unit transactions:
Net proceeds from the issuance of units... 231,387 8,762
Net asset value of units redeemed or used
to meet contract obligations............ (2,967) (145)
-------- ------
Net increase from unit transactions........ 228,420 8,617
-------- ------
Net increase in net assets................. 242,934 8,919
Net assets beginning of period............. 8,919 0
-------- ------
Net assets end of period*.................. $251,853 $8,919
======== ======
Units outstanding beginning of period...... 856 0
Units issued during the period............. 22,512 870
Units redeemed during the period........... (396) (14)
-------- ------
Units outstanding end of period............ 22,972 856
======== ======
- ---------------
* Includes undistributed net investment
income of: $ 8,860 $ 372
** Commencement of operations.
</TABLE>
See notes to financial statements.
<PAGE> 49
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, MONY Custom Equity Master and MONY Custom Estate 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 twenty-one 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"), the Van Eck Worldwide
Insurance Trust ("Van Eck Trust"), the T. Rowe Price Equity Series, Inc., the T.
Rowe Price Fixed Income Series, Inc., and the T. Rowe Price International
Series, Inc., (collectively the "Funds"). The subaccounts of the Corporate
Sponsored Variable Universal Life commenced operations during 1997, 1998 and
1999. 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
Investments:
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
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, 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 1999 aggregated $1,490,726.
As investment adviser to the Fund, MONY America receives amounts paid by
the Fund for those services.
<PAGE> 50
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 the MONY Series Fund, Inc. at cost, at June 30, 1999 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 period:
Shares............................................. 2,685,879 26,879 23,794 78,474
Amount............................................. $ 2,685,879 $299,078 $ 326,005 $ 863,223
------------ -------- ----------- ----------
Shares acquired:
Shares............................................. 72,109,929 43,250 1,307,144 57,717
Amount............................................. $ 72,109,929 $490,080 $18,332,219 $ 637,394
Shares received for reinvestment of dividends:
Shares............................................. 192,522 3,290 81,212 3,374
Amount............................................. $ 192,522 $ 35,406 $ 1,028,956 $ 36,509
Shares redeemed:
Shares............................................. (72,747,383) (1,540) (46,484) (5,518)
Amount............................................. $(72,747,383) $(17,250) $ (644,466) $ (60,703)
------------ -------- ----------- ----------
Net change:
Shares............................................. (444,932) 45,000 1,341,872 55,573
Amount............................................. $ (444,932) $508,236 $18,716,709 $ 613,200
------------ -------- ----------- ----------
Shares end of period:
Shares............................................. 2,240,947 71,879 1,365,666 134,047
Amount............................................. $ 2,240,947 $807,314 $19,042,714 $1,476,423
============ ======== =========== ==========
</TABLE>
Investments in Enterprise Accumulation Trust at cost, at June 30, 1999
consist of the following:
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares....................................... 921 15,751 21,014 33,905 70,710
Amount....................................... $ 33,658 $ 455,079 $ 926,260 $225,697 $ 406,572
---------- --------- ---------- -------- -----------
Shares acquired:
Shares....................................... 34,089 13,301 4,934 16,325 3,355,143
Amount....................................... $1,309,538 $ 384,789 $ 204,722 $110,725 $18,215,360
Shares received for reinvestment of dividends:
Shares....................................... 0 0 0 0 110,643
Amount....................................... $ 0 $ 0 $ 0 $ 0 $ 590,574
Shares redeemed:
Shares....................................... (1,961) (15,320) (1,144) (3,007) (125,653)
Amount....................................... $ (70,684) $(443,888) $ (48,228) $(18,856) $ (704,718)
---------- --------- ---------- -------- -----------
Net change:
Shares....................................... 32,128 (2,019) 3,790 13,318 3,340,133
Amount....................................... $1,238,854 $ (59,099) $ 156,494 $ 91,869 $18,101,216
---------- --------- ---------- -------- -----------
Shares end of period:
Shares....................................... 33,049 13,732 24,804 47,223 3,410,843
Amount....................................... $1,272,512 $ 395,980 $1,082,754 $317,566 $18,507,788
========== ========= ========== ======== ===========
</TABLE>
<PAGE> 51
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Dreyfus and Van Eck Worldwide Insurance Trust at cost, at
June 30, 1999 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 period:
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
---------- -------- ----------- ------ ------- --------
Shares acquired:
Shares......................... 33,623 8,471 582,066 161 894 1,141
Amount......................... $1,253,911 $123,726 $19,813,088 $1,643 $ 9,916 $ 9,805
Shares received for reinvestment
of dividends:
Shares......................... 2 0 4,139 0* 100 0
Amount......................... $ 70 $ 0 $ 144,438 $ 3 $ 1,150 $ 0
Shares redeemed:
Shares......................... (1,110) (1,447) (15,453) (3) (69) (929)
Amount......................... $ (31,288) $(24,019) $ (402,300) $ (35) $ (763) $(11,238)
---------- -------- ----------- ------ ------- --------
Net change:
Shares......................... 32,515 7,024 570,752 158 925 212
Amount......................... $1,222,693 $ 99,707 $19,555,226 $1,611 $10,303 $ (1,433)
---------- -------- ----------- ------ ------- --------
Shares end of period:
Shares......................... 45,819 26,618 690,756 181 2,620 3,791
Amount......................... $1,635,970 $389,457 $22,825,439 $1,847 $29,658 $ 29,632
========== ======== =========== ====== ======= ========
</TABLE>
- ---------------
* Less than one share
Investments in T. Rowe Price at cost, at June 30, 1999 consist of the
following:
<TABLE>
<CAPTION>
EQUITY PRIME INTERNATIONAL LIMITED NEW AMERICA PERSONAL STRATEGY
INCOME RESERVE STOCK TERM GROWTH BALANCE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------- --------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares.............................. 2,565 0 1,037 0 1,949 552
Amount.............................. $ 50,488 $ 0 $14,492 $ 0 $ 43,998 $ 8,992
-------- -------- ------- ---- -------- --------
Shares acquired:
Shares.............................. 26,269 102,339 3,639 187 4,703 14,534
Amount.............................. $525,378 $102,339 $54,014 $938 $119,161 $232,482
Shares received for reinvestment of
dividends:
Shares.............................. 192 1,629 0 4 0 533
Amount.............................. $ 3,921 $ 1,629 $ 0 $ 20 $ 0 $ 8,488
Shares redeemed:
Shares.............................. (972) (5,415) (147) (9) (265) (253)
Amount.............................. $(19,027) $ (5,415) $(2,064) $(46) $ (5,954) $ (4,099)
-------- -------- ------- ---- -------- --------
Net change:
Shares.............................. 25,489 98,553 3,492 182 4,438 14,814
Amount.............................. $510,272 $ 98,553 $51,950 $912 $113,207 $236,871
-------- -------- ------- ---- -------- --------
Shares end of period:
Shares.............................. 28,054 98,553 4,529 182 6,387 15,366
Amount.............................. $560,760 $ 98,553 $66,442 $912 $157,205 $245,863
======== ======== ======= ==== ======== ========
</TABLE>
<PAGE> 52
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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)............ $ 80,570 $ 51,330 $ 7,158 $ 13,766 $ 89,119 $ 24,109
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2).............. $104,565 $ 52,396 $ 7,267 $ 14,551 $110,915 $ 24,109
Amount due from MONY.................... 6 6 0 6 0 2
Amount due from MONY Series Fund,
Inc. ................................. 115 102 0 72 0 23
-------- -------- -------- -------- -------- --------
Total assets.................. 104,686 52,504 7,267 14,629 110,915 24,134
-------- -------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY...................... 115 102 0 72 0 23
Amount due to MONY Series Fund, Inc..... 6 6 0 6 0 2
-------- -------- -------- -------- -------- --------
Total liabilities............. 121 108 0 78 0 25
-------- -------- -------- -------- -------- --------
Net assets.............................. $104,565 $ 52,396 $ 7,267 $ 14,551 $110,915 $ 24,109
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments......... $ 69,801 $ 49,502 $ 9,778 $ 16,938 $ 70,163 $ 47,290
Cost of insurance withdrawals (Note
3)................................. (59,312) (38,538) (13,583) (36,899) (42,088) (50,241)
Undistributed net investment income... 34,978 28,201 9,800 28,268 54,255 27,060
Accumulated net realized gain
on investments..................... 35,103 12,165 1,163 5,459 6,789 0
Unrealized appreciation of
investments........................ 23,995 1,066 109 785 21,796 0
-------- -------- -------- -------- -------- --------
Net assets.............................. $104,565 $ 52,396 $ 7,267 $ 14,551 $110,915 $ 24,109
======== ======== ======== ======== ======== ========
Number of units outstanding*............ 1,649 929 321 544 2,315 1,310
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*... $ 63.40 $ 56.40 $ 22.61 $ 26.73 $ 47.92 $ 18.41
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
36
<PAGE> 53
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<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)....... $ 92,274 $31,917 $165,211 $343,458
======== ======= ======== ========
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)............................... 89,640 31,234 149,839 343,458
Amount due from MONY............... 0 0 0 6,460
Amount due from MONY Series Fund,
Inc.............................. 30 6 59 126
Amount due from Enterprise
Accumulation Trust............... 0 0 0 0
-------- ------- -------- --------
Total assets............... 89,670 31,240 149,898 350,044
-------- ------- -------- --------
LIABILITIES
Amount due to MONY................. 30 6 59 126
Amount due to MONY Series Fund,
Inc.............................. 0 0 0 6,460
Amount due to Enterprise
Accumulation Trust............... 0 0 0 0
-------- ------- -------- --------
Total liabilities.......... 30 6 59 6,586
-------- ------- -------- --------
Net assets......................... $ 89,640 $31,234 $149,839 $343,458
======== ======= ======== ========
Net assets consist of:
Contractholders' net payments.... $105,042 $36,468 $182,952 $373,295
Cost of insurance withdrawals
(Note 3)....................... (16,402) (6,141) (33,229) (43,634)
Undistributed net investment
income......................... 2,644 1,326 11,000 13,797
Accumulated net realized gain on
investments.................... 990 264 4,488 0
Unrealized appreciation
(depreciation) of
investments.................... (2,634) (683) (15,372) 0
-------- ------- -------- --------
Net assets......................... $ 89,640 $31,234 $149,839 $343,458
======== ======= ======== ========
Number of units outstanding*....... 8,037 2,766 13,104 30,686
-------- ------- -------- --------
Net asset value per unit
outstanding*..................... $ 11.15 $ 11.29 $ 11.44 $ 11.19
======== ======= ======== ========
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $3,349,453 $1,416,691 $ 5,857,220 $483,183 $353,763
========== ========== =========== ======== ========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $3,604,712 $1,564,692 $ 6,052,535 $497,795 $337,215
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 0 0 0 0 0
Amount due from MONY............... 3,244 2,590 5,532 103 96
Amount due from MONY Series Fund,
Inc.............................. 0 0 0 0 0
Amount due from Enterprise
Accumulation Trust............... 1,510 1,008 2,250 269 135
---------- ---------- ----------- -------- --------
Total assets............... 3,609,466 1,568,290 6,060,317 498,167 337,446
---------- ---------- ----------- -------- --------
LIABILITIES
Amount due to MONY................. 1,510 1,008 2,250 269 135
Amount due to MONY Series Fund,
Inc.............................. 0 0 0 0 0
Amount due to Enterprise
Accumulation Trust............... 3,244 2,590 5,532 103 96
---------- ---------- ----------- -------- --------
Total liabilities.......... 4,754 3,598 7,782 372 231
---------- ---------- ----------- -------- --------
Net assets......................... $3,604,712 $1,564,692 $ 6,052,535 $497,795 $337,215
========== ========== =========== ======== ========
Net assets consist of:
Contractholders' net payments.... $3,730,261 $1,599,713 $ 6,427,457 $544,577 $384,500
Cost of insurance withdrawals
(Note 3)....................... (588,748) (279,765) (1,120,902) (85,652) (61,482)
Undistributed net investment
income......................... 126,607 70,086 418,678 17,488 31,840
Accumulated net realized gain on
investments.................... 81,333 26,657 131,987 6,770 (1,095)
Unrealized appreciation
(depreciation) of
investments.................... 255,259 148,001 195,315 14,612 (16,548)
---------- ---------- ----------- -------- --------
Net assets......................... $3,604,712 $1,564,692 $ 6,052,535 $497,795 $337,215
========== ========== =========== ======== ========
Number of units outstanding*....... 242,202 85,045 401,285 41,148 28,342
---------- ---------- ----------- -------- --------
Net asset value per unit
outstanding*..................... $ 14.88 $ 18.40 $ 15.08 $ 12.10 $ 11.90
========== ========== =========== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
37
<PAGE> 54
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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......................... $ 7,904 $ 8,500 $ 345 $ 876 $12,929 $ 561
Mortality and expense risk charges (Note
3).................................... (309) (150) (22) (45) (313) (73)
------- ------- ----- ------- ------- -------
Net investment income................... 7,595 8,350 323 831 12,616 488
------- ------- ----- ------- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................... 16,020 6,223 368 640 2,122 1,570
Cost of shares sold................... (9,274) (4,821) (338) (575) (1,353) (1,570)
------- ------- ----- ------- ------- -------
Net realized gain on investments........ 6,746 1,402 30 65 769 0
Net increase (decrease) in unrealized
appreciation of investments........... 2,234 (3,873) (419) (1,887) 745 0
------- ------- ----- ------- ------- -------
Net realized and unrealized gain (loss)
on investments........................ 8,980 (2,471) (389) (1,822) 1,514 0
------- ------- ----- ------- ------- -------
Net increase (decrease) in net assets
resulting from operations............. $16,575 $ 5,879 $ (66) $ (991) $14,130 $ 488
======= ======= ===== ======= ======= =======
</TABLE>
See notes to financial statements.
38
<PAGE> 55
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY EQUITY 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.................... $ 2,524 $ 1,343 $ 8,412 $ 5,279
Mortality and expense risk charges
(Note 3)......................... (280) (101) (554) (859)
-------- ------- -------- -----------
Net investment income (loss)....... 2,244 1,242 7,858 4,420
-------- ------- -------- -----------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales.............. 18,899 4,796 57,171 1,139,712
Cost of shares sold.............. (18,978) (4,607) (57,308) (1,139,712)
-------- ------- -------- -----------
Net realized gain (loss) on
investments...................... (79) 189 (137) 0
Net increase (decrease) in
unrealized appreciation of
investments...................... (2,753) (1,696) (17,769) 0
-------- ------- -------- -----------
Net realized and unrealized gain
(loss) on investments............ (2,832) (1,507) (17,906) 0
-------- ------- -------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... $ (588) $ (265) $(10,048) $ 4,420
======== ======= ======== ===========
<CAPTION>
MONY EQUITY MASTER
--------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.................... $ 0 $ 0 $ 0 $ 0 $ 12,570
Mortality and expense risk charges
(Note 3)......................... (11,506) (4,777) (20,321) (1,604) (1,116)
--------- --------- --------- -------- --------
Net investment income (loss)....... (11,506) (4,777) (20,321) (1,604) 11,454
--------- --------- --------- -------- --------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales.............. 302,459 188,925 686,013 52,853 40,980
Cost of shares sold.............. (285,854) (182,606) (696,271) (51,652) (43,744)
--------- --------- --------- -------- --------
Net realized gain (loss) on
investments...................... 16,605 6,319 (10,258) 1,201 (2,764)
Net increase (decrease) in
unrealized appreciation of
investments...................... 252,914 171,277 417,101 6,174 (4,847)
--------- --------- --------- -------- --------
Net realized and unrealized gain
(loss) on investments............ 269,519 177,596 406,843 7,375 (7,611)
--------- --------- --------- -------- --------
Net increase (decrease) in net
assets resulting from
operations....................... $ 258,013 $ 172,819 $ 386,522 $ 5,771 $ 3,843
========= ========= ========= ======== ========
</TABLE>
See notes to financial statements.
39
<PAGE> 56
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STRATEGIST
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 7,595 $13,287 $ 8,350 $ 7,084 $ 323 $ 325
Net realized gain on
investments.................. 6,746 3,530 1,402 1,152 30 43
Net increase (decrease) in
unrealized appreciation of
investments.................. 2,234 2,645 (3,873) (3,246) (419) 109
-------- ------- ------- ------- ------ ------
Net increase (decrease) in net
assets resulting from
operations..................... 16,575 19,462 5,879 4,990 (66) 477
-------- ------- ------- ------- ------ ------
From unit transactions:
Net proceeds from the issuance
of units..................... 4,267 8,754 3,710 7,517 204 407
Net asset value of units
redeemed or used to meet
contract obligations......... (15,644) (7,677) (6,051) (6,714) (312) (504)
-------- ------- ------- ------- ------ ------
Net increase (decrease) from
unit transactions.............. (11,377) 1,077 (2,341) 803 (108) (97)
-------- ------- ------- ------- ------ ------
Net increase (decrease) in net
assets......................... 5,198 20,539 3,538 5,793 (174) 380
Net assets beginning of
period......................... 99,367 78,828 48,858 43,065 7,441 7,061
-------- ------- ------- ------- ------ ------
Net assets end of period*....... $104,565 $99,367 $52,396 $48,858 $7,267 $7,441
======== ======= ======= ======= ====== ======
Units outstanding beginning of
period......................... 1,830 1,811 975 962 327 331
Units issued during the
period......................... 72 187 70 162 8 19
Units redeemed during the
period......................... (253) (168) (116) (149) (14) (23)
-------- ------- ------- ------- ------ ------
Units outstanding end of
period......................... 1,649 1,830 929 975 321 327
======== ======= ======= ======= ====== ======
- ---------------
* Includes undistributed net
investment income of: $ 34,978 $27,383 $28,201 $19,851 $9,800 $9,477
<CAPTION>
STRATEGIST
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 831 $ 752 $ 12,616 $18,741 $ 488 $ 1,294
Net realized gain on
investments.................. 65 157 769 1,312 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................. (1,887) 481 745 (1,726) 0 0
------- ------- -------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations..................... (991) 1,390 14,130 18,327 488 1,294
------- ------- -------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units..................... 322 646 1,016 2,164 91 242
Net asset value of units
redeemed or used to meet
contract obligations......... (584) (1,117) (1,691) (3,504) (1,467) (7,011)
------- ------- -------- ------- ------- -------
Net increase (decrease) from
unit transactions.............. (262) (471) (675) (1,340) (1,376) (6,769)
------- ------- -------- ------- ------- -------
Net increase (decrease) in net
assets......................... (1,253) 919 13,455 16,987 (888) (5,475)
Net assets beginning of
period......................... 15,804 14,885 97,460 80,473 24,997 30,472
------- ------- -------- ------- ------- -------
Net assets end of period*....... $14,551 $15,804 $110,915 $97,460 $24,109 $24,997
======= ======= ======== ======= ======= =======
Units outstanding beginning of
period......................... 554 571 2,330 2,366 1,385 1,767
Units issued during the
period......................... 12 24 22 58 5 14
Units redeemed during the
period......................... (22) (41) (37) (94) (80) (396)
------- ------- -------- ------- ------- -------
Units outstanding end of
period......................... 544 554 2,315 2,330 1,310 1,385
======= ======= ======== ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $28,268 $27,437 $ 54,255 $41,639 $27,060 $26,572
</TABLE>
See notes to financial statements.
40
<PAGE> 57
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
GOVERNMENT SECURITIES INTERMEDIATE TERM LONG TERM
SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 2,244 $ 432 $ 1,242 $ 84 $ 7,858 $ 2,252
Net realized gain (loss) on
investments.................... (79) 1,037 189 48 (137) 4,667
Net increase (decrease) in
unrealized appreciation of
investments.................... (2,753) (183) (1,696) 936 (17,769) 95
-------- -------- ------- ------- -------- --------
Net increase (decrease) in net
assets resulting from
operations....................... (588) 1,286 (265) 1,068 (10,048) 7,014
-------- -------- ------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 52,866 65,090 9,522 25,294 83,106 117,542
Net asset value of units redeemed
or used to meet contract
obligations.................... (11,527) (30,558) (1,978) (4,660) (43,506) (45,844)
-------- -------- ------- ------- -------- --------
Net increase (decrease) from unit
transactions..................... 41,339 34,532 7,544 20,634 39,600 71,698
-------- -------- ------- ------- -------- --------
Net increase (decrease) in net
assets........................... 40,751 35,818 7,279 21,702 29,552 78,712
Net assets beginning of period..... 48,889 13,071 23,955 2,253 120,287 41,575
-------- -------- ------- ------- -------- --------
Net assets end of period*.......... $ 89,640 $ 48,889 $31,234 $23,955 $149,839 $120,287
======== ======== ======= ======= ======== ========
Units outstanding beginning of
period........................... 4,352 1,234 2,101 211 9,848 3,719
Units issued during the period..... 4,735 7,967 863 2,310 7,304 11,923
Units redeemed during the period... (1,050) (4,849) (198) (420) (4,048) (5,794)
-------- -------- ------- ------- -------- --------
Units outstanding end of period.... 8,037 4,352 2,766 2,101 13,104 9,848
======== ======== ======= ======= ======== ========
- ---------------
* Includes
undistributed/accumulated net
investment income of: $ 2,644 $ 400 $ 1,326 $ 84 $ 11,000 $ 3,142
<CAPTION>
MONY EQUITY MASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
MONEY MARKET
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 4,420 $ 6,364
Net realized gain (loss) on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
-------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 4,420 6,364
-------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 799,026 2,471,685
Net asset value of units redeemed
or used to meet contract
obligations.................... (817,046) (2,290,641)
-------- -----------
Net increase (decrease) from unit
transactions..................... (18,020) 181,044
-------- -----------
Net increase (decrease) in net
assets........................... (13,600) 187,408
Net assets beginning of period..... 357,058 169,650
-------- -----------
Net assets end of period*.......... $343,458 $ 357,058
======== ===========
Units outstanding beginning of
period........................... 32,517 16,142
Units issued during the period..... 79,040 237,863
Units redeemed during the period... (80,871) (221,488)
-------- -----------
Units outstanding end of period.... 30,686 32,517
======== ===========
- ---------------
* Includes
undistributed/accumulated net
investment income of: $ 13,797 $ 9,377
</TABLE>
See notes to financial statements.
41
<PAGE> 58
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------
EQUITY SMALL COMPANY MANAGED
SUBACCOUNT VALUE SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (11,506) $ 101,544 $ (4,777) $ 56,481 $ (20,321) $ 338,981
Net realized gain (loss) on
investments.................. 16,605 31,965 6,319 9,045 (10,258) 87,429
Net increase (decrease) in
unrealized appreciation of
investments.................. 252,914 1,665 171,277 (23,869) 417,101 (225,085)
---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations...... 258,013 135,174 172,819 41,657 386,522 201,325
---------- ---------- ---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units..................... 920,782 1,691,977 490,602 952,775 1,335,821 3,108,506
Net asset value of units
redeemed or used to meet
contract obligations......... (243,768) (333,417) (150,223) (165,227) (563,978) (766,917)
---------- ---------- ---------- ---------- ---------- ----------
Net increase from unit
transactions................... 677,014 1,358,560 340,379 787,548 771,843 2,341,589
---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets....... 935,027 1,493,734 513,198 829,205 1,158,365 2,542,914
Net assets beginning of period... 2,669,685 1,175,951 1,051,494 222,289 4,894,170 2,351,256
---------- ---------- ---------- ---------- ---------- ----------
Net assets end of period*........ $3,604,712 $2,669,685 $1,564,692 $1,051,494 $6,052,535 $4,894,170
========== ========== ========== ========== ========== ==========
Units outstanding beginning of
period......................... 193,933 93,188 64,856 14,918 347,392 178,819
Units issued during the period... 66,916 127,117 29,740 61,712 96,268 225,219
Units redeemed during the
period......................... (18,647) (26,372) (9,551) (11,774) (42,375) (56,646)
---------- ---------- ---------- ---------- ---------- ----------
Units outstanding end of
period......................... 242,202 193,933 85,045 64,856 401,285 347,392
========== ========== ========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 126,607 $ 138,113 $ 70,086 $ 74,863 $ 418,678 $ 438,999
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (1,604) $ 14,611 $ 11,454 $ 16,017
Net realized gain (loss) on
investments.................. 1,201 (901) (2,764) (22)
Net increase (decrease) in
unrealized appreciation of
investments.................. 6,174 18,656 (4,847) (12,950)
-------- -------- -------- --------
Net increase in net assets
resulting from operations...... 5,771 32,366 3,843 3,045
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 164,970 217,747 103,404 192,334
Net asset value of units
redeemed or used to meet
contract obligations......... (43,616) (50,680) (28,697) (34,511)
-------- -------- -------- --------
Net increase from unit
transactions................... 121,354 167,067 74,707 157,823
-------- -------- -------- --------
Net increase in net assets....... 127,125 199,433 78,550 160,868
Net assets beginning of period... 370,670 171,237 258,665 97,797
-------- -------- -------- --------
Net assets end of period*........ $497,795 $370,670 $337,215 $258,665
======== ======== ======== ========
Units outstanding beginning of
period......................... 30,978 16,311 22,083 8,584
Units issued during the period... 14,022 19,541 9,120 16,309
Units redeemed during the
period......................... (3,852) (4,874) (2,861) (2,810)
-------- -------- -------- --------
Units outstanding end of
period......................... 41,148 30,978 28,342 22,083
======== ======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 17,488 $ 19,092 $ 31,840 $ 20,386
</TABLE>
See notes to financial statements.
42
<PAGE> 59
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 (Strategist) 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
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 1999 aggregated $791,047.
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.
43
<PAGE> 60
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at June 30, 1999 consist of
the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares............................ 2,601 1,883 657 1,115 4,895 24,997
Amount............................ $77,606 $43,918 $6,913 $13,132 $76,409 $24,997
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................ 106 145 22 25 55 121
Amount............................ $ 4,334 $ 3,733 $ 238 $ 333 $ 1,134 $ 121
Shares received for reinvestment of
dividends:
Shares............................ 194 349 32 69 648 561
Amount............................ $ 7,904 $ 8,500 $ 345 $ 876 $12,929 $ 561
Shares redeemed:
Shares............................ (369) (236) (33) (48) (102) (1,570)
Amount............................ $(9,274) $(4,821) $ (338) $ (575) $(1,353) $(1,570)
------- ------- ------ ------- ------- -------
Net change:
Shares............................ (69) 258 21 46 601 (888)
Amount............................ $ 2,964 $ 7,412 $ 245 $ 634 $12,710 $ (888)
------- ------- ------ ------- ------- -------
Shares end of period:
Shares............................ 2,532 2,141 678 1,161 5,496 24,109
Amount............................ $80,570 $51,330 $7,158 $13,766 $89,119 $24,109
======= ======= ====== ======= ======= =======
</TABLE>
44
<PAGE> 61
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at June 30, 1999 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 4,377 2,114 8,489 357,058
Amount............. $ 48,770 $22,942 $117,891 $ 357,058
--------- ------- -------- -----------
Shares acquired:
Shares............. 5,396 1,101 6,988 1,120,833
Amount............. $ 59,958 $12,239 $ 96,216 $ 1,120,833
Shares received for
reinvestment of
dividends:
Shares............. 233 125 664 5,279
Amount............. $ 2,524 $ 1,343 $ 8,412 $ 5,279
Shares redeemed:
Shares............. (1,706) (429) (4,183) (1,139,712)
Amount............. $ (18,978) $(4,607) $(57,308) $(1,139,712)
--------- ------- -------- -----------
Net change:
Shares............. 3,923 797 3,469 (13,600)
Amount............. $ 43,504 $ 8,975 $ 47,320 $ (13,600)
--------- ------- -------- -----------
Shares end of period:
Shares............. 8,300 2,911 11,958 343,458
Amount............. $ 92,274 $31,917 $165,211 $ 343,458
========= ======= ======== ===========
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 72,507 38,432 120,665 54,995 48,169
Amount............. $2,667,340 $1,074,770 $5,115,956 $362,232 $270,366
---------- ---------- ---------- -------- --------
Shares acquired:
Shares............. 25,767 18,388 34,745 25,628 21,347
Amount............. $ 967,967 $ 524,527 $1,437,535 $172,603 $114,571
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 0 2,350
Amount............. $ 0 $ 0 $ 0 $ 0 $ 12,570
Shares redeemed:
Shares............. (8,043) (6,605) (16,527) (7,846) (7,634)
Amount............. $ (285,854) $ (182,606) $ (696,271) $(51,652) $(43,744)
---------- ---------- ---------- -------- --------
Net change:
Shares............. 17,724 11,783 18,218 17,782 16,063
Amount............. $ 682,113 $ 341,921 $ 741,264 $120,951 $ 83,397
---------- ---------- ---------- -------- --------
Shares end of period:
Shares............. 90,231 50,215 138,883 72,777 64,232
Amount............. $3,349,453 $1,416,691 $5,857,220 $483,183 $353,763
========== ========== ========== ======== ========
</TABLE>
45
<PAGE> 62
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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)...................... $108,849 $130,584 $35,010 $145,414 $56,646
======== ======== ======= ======== =======
Investments in MONY Series Fund, Inc at net asset
value (Note 2).................................. $183,810 $148,298 $35,648 $199,029 $56,646
-------- -------- ------- -------- -------
Net assets.............................. $183,810 $148,298 $35,648 $199,029 $56,646
======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net payments................... $ 20,602 $ (5,131) $17,309 $ 34,070 $35,657
Cost of insurance withdrawals (Note 3).......... (8,947) (13,345) (6,555) (14,860) (3,483)
Undistributed net investment income............. 58,257 104,490 25,372 110,296 24,472
Accumulated net realized gain (loss) on
investments.................................. 38,937 44,570 (1,116) 15,908 0
Unrealized appreciation of investments.......... 74,961 17,714 638 53,615 0
-------- -------- ------- -------- -------
Net assets........................................ $183,810 $148,298 $35,648 $199,029 $56,646
======== ======== ======= ======== =======
Number of units outstanding*...................... 2,914 2,880 1,720 4,352 3,351
-------- -------- ------- -------- -------
Net asset value per unit outstanding*............. $ 63.07 $ 51.49 $ 20.74 $ 45.74 $ 16.91
======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
46
<PAGE> 63
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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.......................... $13,997 $24,383 $ 1,693 $23,200 $1,282
Mortality and expense risk charges (Note
3)..................................... (729) (585) (151) (794) (237)
------- ------- ------- ------- ------
Net investment income.................... 13,268 23,798 1,542 22,406 1,045
------- ------- ------- ------- ------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................... 786 632 205 842 252
Cost of shares sold.................... (241) (376) (201) (486) (252)
------- ------- ------- ------- ------
Net realized gain on investments......... 545 256 4 356 0
Net increase (decrease) in unrealized
appreciation of investments............ 12,432 (7,652) (1,913) 2,296 0
------- ------- ------- ------- ------
Net realized and unrealized gain (loss)
on investments......................... 12,977 (7,396) (1,909) 2,652 0
------- ------- ------- ------- ------
Net increase (decrease) in net assets
resulting from operations.............. $26,245 $16,402 $ (367) $25,058 $1,045
======= ======= ======= ======= ======
</TABLE>
See notes to financial statements.
47
<PAGE> 64
MONY AMERICA
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONYVESTOR
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 13,268 $ 21,360 $ 23,798 $ 19,262 $ 1,542 $ 1,516
Net realized gain on
investments.................. 545 3,863 256 1,585 4 63
Net increase (decrease) in
unrealized appreciation of
investments.................. 12,432 6,332 (7,652) (6,820) (1,913) 692
-------- -------- -------- -------- ------- -------
Net increase (decrease) in net
assets resulting from
operations..................... 26,245 31,555 16,402 14,027 (367) 2,271
-------- -------- -------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units..................... 0 561 0 443 0 534
Net asset value of units
redeemed or used to meet
contract obligations......... (57) (4,521) (47) (3,645) (54) (1,418)
-------- -------- -------- -------- ------- -------
Net increase (decrease) from
unit transactions.............. (57) (3,960) (47) (3,202) (54) (884)
-------- -------- -------- -------- ------- -------
Net increase (decrease) in net
assets......................... 26,188 27,595 16,355 10,825 (421) 1,387
Net assets beginning of
period......................... 157,622 130,027 131,943 121,118 36,069 34,682
-------- -------- -------- -------- ------- -------
Net assets end of period*....... $183,810 $157,622 $148,298 $131,943 $35,648 $36,069
======== ======== ======== ======== ======= =======
Units outstanding beginning of
period......................... 2,915 2,993 2,881 2,954 1,722 1,765
Units issued during the
period......................... 0 12 0 8 0 21
Units redeemed during the
period......................... (1) (90) (1) (81) (2) (64)
-------- -------- -------- -------- ------- -------
Units outstanding end of
period......................... 2,914 2,915 2,880 2,881 1,720 1,722
======== ======== ======== ======== ======= =======
- ---------------
* Includes undistributed net
investment
income of: $ 58,257 $ 44,989 $104,490 $ 80,692 $25,372 $23,830
<CAPTION>
MONYVESTOR
---------------------------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 22,406 $ 32,747 $ 1,045 $ 2,348
Net realized gain on
investments.................. 356 590 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................. 2,296 (1,150) 0 0
-------- -------- ------- -------
Net increase (decrease) in net
assets resulting from
operations..................... 25,058 32,187 1,045 2,348
-------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units..................... 0 450 0 389
Net asset value of units
redeemed or used to meet
contract obligations......... (48) (428) (15) (671)
-------- -------- ------- -------
Net increase (decrease) from
unit transactions.............. (48) 22 (15) (282)
-------- -------- ------- -------
Net increase (decrease) in net
assets......................... 25,010 32,209 1,030 2,066
Net assets beginning of
period......................... 174,019 141,810 55,616 53,550
-------- -------- ------- -------
Net assets end of period*....... $199,029 $174,019 $56,646 $55,616
======== ======== ======= =======
Units outstanding beginning of
period......................... 4,353 4,351 3,352 3,369
Units issued during the
period......................... 0 10 0 21
Units redeemed during the
period......................... (1) (8) (1) (38)
-------- -------- ------- -------
Units outstanding end of
period......................... 4,352 4,353 3,351 3,352
======== ======== ======= =======
- ---------------
* Includes undistributed net
investment
income of: $110,296 $ 87,890 $24,472 $23,427
</TABLE>
See notes to financial statements.
48
<PAGE> 65
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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
1999 aggregated $213.
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.
49
<PAGE> 66
MONY AMERICA
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc at cost, at June 30, 1999 consist of
the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE MONEY
GROWTH INCOME TERM BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ----------- ---------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares.................................... 4,126 5,085 3,183 8,740 55,616
Amount.................................... $ 95,093 $106,577 $33,518 $122,700 $55,616
-------- -------- ------- -------- -------
Shares acquired:
Shares.................................... 0 0 0 0 0
Amount.................................... $ 0 $ 0 $ 0 $ 0 $ 0
Shares received for reinvestment of
dividends:
Shares.................................... 343 1,000 157 1,163 1,282
Amount.................................... $ 13,997 $ 24,383 $ 1,693 $ 23,200 $ 1,282
Shares redeemed:
Shares.................................... (19) (24) (19) (41) (252)
Amount.................................... $ (241) $ (376) $ (201) $ (486) $ (252)
-------- -------- ------- -------- -------
Net change:
Shares.................................... 324 976 138 1,122 1,030
Amount.................................... $ 13,756 $ 24,007 $ 1,492 $ 22,714 $ 1,030
-------- -------- ------- -------- -------
Shares end of period:
Shares.................................... 4,450 6,061 3,321 9,862 56,646
Amount.................................... $108,849 $130,584 $35,010 $145,414 $56,646
======== ======== ======= ======== =======
</TABLE>
50
<PAGE> 67
MONY
VARIABLE ACCOUNT S
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYVESTOR
-------------------------
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- -----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)................................ $55,341 $ 89,231
======= =========
Investments in MONY Series Fund, Inc at net asset value
(Note 2).................................................. $74,121 $ 118,436
------- ---------
Net assets.................................................. $74,121 $ 118,436
======= =========
Net assets consist of:
Contractholders' net payments............................. $16,607 $(141,710)
Cost of insurance withdrawals (Note 3).................... (1,904) (66,568)
Undistributed net investment income....................... 37,460 183,386
Accumulated net realized gains on investments............. 3,178 114,123
Unrealized appreciation of investments.................... 18,780 29,205
------- ---------
Net assets.................................................. $74,121 $ 118,436
======= =========
Number of units outstanding*................................ 1,525 2,770
------- ---------
Net asset value per unit outstanding*....................... $ 48.62 $ 42.75
======= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
51
<PAGE> 68
MONY
VARIABLE ACCOUNT S
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYVESTOR
-------------------------
EQUITY
INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------- -----------
<S> <C> <C>
Dividend income............................................. $12,187 $13,809
Mortality and expense risk charges (Note 3)................. (292) (473)
------- -------
Net investment income....................................... 11,895 13,336
------- -------
Realized and unrealized gain (loss) on investments (Note 2):
Proceeds from sales....................................... 292 642
Cost of shares sold....................................... (152) (391)
------- -------
Net realized gain on investments............................ 140 251
Net increase (decrease) in unrealized appreciation of
investments............................................... (3,837) 1,332
------- -------
Net realized and unrealized gain (loss) on investments...... (3,697) 1,583
------- -------
Net increase in net assets resulting from operations........ $ 8,198 $14,919
======= =======
</TABLE>
See notes to financial statements
52
<PAGE> 69
MONY
VARIABLE ACCOUNT S
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONYVESTOR
------------------------------------------------------------
EQUITY INCOME DIVERSIFIED
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income................ $11,895 $ 9,379 $ 13,336 $ 19,575
Net realized gain on investments..... 140 241 251 360
Net increase (decrease) in unrealized
appreciation of investments....... (3,837) (2,720) 1,332 (756)
------- ------- -------- --------
Net increase in net assets resulting
from operations...................... 8,198 6,900 14,919 19,179
------- ------- -------- --------
From unit transactions:
Net asset value of units redeemed or
used to meet contract
obligations....................... 0 0 (146) (367)
------- ------- -------- --------
Net decrease from unit transactions.... 0 0 (146) (367)
------- ------- -------- --------
Net increase in net assets............. 8,198 6,900 14,773 18,812
Net assets beginning of period......... 65,923 59,023 103,663 84,851
------- ------- -------- --------
Net assets end of period*.............. $74,121 $65,923 $118,436 $103,663
======= ======= ======== ========
Units outstanding beginning of
period............................... 1,525 1,525 2,774 2,785
Units redeemed during the period....... 0 0 (4) (11)
------- ------- -------- --------
Units outstanding end of period........ 1,525 1,525 2,770 2,774
======= ======= ======== ========
- ---------------
* Includes undistributed net investment
income of: $37,460 $25,565 $183,386 $170,050
</TABLE>
See notes to financial statements.
53
<PAGE> 70
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 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 1999
aggregated $147.
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.
54
<PAGE> 71
MONY
VARIABLE ACCOUNT S
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc at cost, at June 30, 1999 consist of
the following:
<TABLE>
<CAPTION>
EQUITY
INCOME DIVERSIFIED
PORTFOLIO PORTFOLIO
--------- -----------
<S> <C> <C>
Shares beginning of period:
Shares.................................................... 2,540 5,207
Amount.................................................... $43,306 $75,790
------- -------
Shares received for reinvestment of dividends:
Shares.................................................... 500 693
Amount.................................................... $12,187 $13,832
Shares redeemed:
Shares.................................................... (11) (31)
Amount.................................................... $ (152) $ (391)
------- -------
Net change:
Shares.................................................... 489 662
Amount.................................................... $12,035 $13,441
------- -------
Shares end of period:
Shares.................................................... 3,029 5,869
Amount.................................................... $55,341 $89,231
======= =======
</TABLE>
55
<PAGE> 72
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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)........... $1,345,607 $1,159,007 $44,618,444 $86,499,208 $1,473,055 $205,805,811
========== ========== =========== =========== ========== ============
Investments in MONY
Series Fund, Inc.,
at net asset value
(Note 2)........... $1,597,124 $1,244,396 $43,658,493 $79,035,192 $1,677,202 $205,805,811
Amount due from MONY
America............ 0 0 2,576 3,452 0 120,663
Amount due from MONY
Series Fund,
Inc. .............. 0 0 182,155 28,182 60 98,514
---------- ---------- ----------- ----------- ---------- ------------
Total assets......... 1,597,124 1,244,396 43,843,224 79,066,826 1,677,262 206,024,988
---------- ---------- ----------- ----------- ---------- ------------
LIABILITIES
Amount due to MONY
America............ 0 0 182,155 28,182 60 98,514
Amount due to MONY
Series Fund,
Inc. .............. 0 0 2,576 3,452 0 120,663
---------- ---------- ----------- ----------- ---------- ------------
Total liabilities.... 0 0 184,731 31,634 60 219,177
---------- ---------- ----------- ----------- ---------- ------------
Net assets........... $1,597,124 $1,244,396 $43,658,493 $79,035,192 $1,677,202 $205,805,811
========== ========== =========== =========== ========== ============
Net assets consist
of:
Contractholders'
net payments..... $(169,111) $(424,442) $34,135,828 $61,589,441 $ (553,407) $177,474,236
Undistributed net
investment
income........... 568,337 903,513 9,379,510 18,143,795 1,240,444 28,331,575
Accumulated net
realized gain on
investments...... 946,381 679,936 1,103,106 6,765,972 786,018 0
Unrealized
appreciation
(depreciation) of
investments...... 251,517 85,389 (959,951) (7,464,016) 204,147 0
---------- ---------- ----------- ----------- ---------- ------------
Net assets........... $1,597,124 $1,244,396 $43,658,493 $79,035,192 $1,677,202 $205,805,811
========== ========== =========== =========== ========== ============
Number of units
outstanding*....... 27,719 26,000 2,254,968 3,411,758 39,824 12,848,671
---------- ---------- ----------- ----------- ---------- ------------
Net asset value per
unit
outstanding*....... $ 57.62 $ 47.86 $ 19.36 $ 23.17 $ 42.12 $ 16.02
========== ========== =========== =========== ========== ============
<CAPTION>
MONYMASTER VALUEMASTER
----------- -----------
MONY SERIES FUND, INC.
-------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
----------- -----------
<S> <C> <C>
ASSETS
Investments at cost
(Note 4)........... $43,317,487 $2,778,011
=========== ==========
Investments in MONY
Series Fund, Inc.,
at net asset value
(Note 2)........... $42,466,159 $2,778,011
Amount due from MONY
America............ 71 0
Amount due from MONY
Series Fund,
Inc. .............. 25,946 0
----------- ----------
Total assets......... 42,492,176 2,778,011
----------- ----------
LIABILITIES
Amount due to MONY
America............ 25,946 0
Amount due to MONY
Series Fund,
Inc. .............. 71 0
----------- ----------
Total liabilities.... 26,017 0
----------- ----------
Net assets........... $42,466,159 $2,778,011
=========== ==========
Net assets consist
of:
Contractholders'
net payments..... $39,793,195 $1,573,265
Undistributed net
investment
income........... 2,093,942 1,204,746
Accumulated net
realized gain on
investments...... 1,430,349 0
Unrealized
appreciation
(depreciation) of
investments...... (851,327) 0
----------- ----------
Net assets........... $42,466,159 $2,778,011
=========== ==========
Number of units
outstanding*....... 3,410,995 189,897
----------- ----------
Net asset value per
unit
outstanding*....... $ 12.45 $ 14.63
=========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
56
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $466,127,460 $313,485,801 $2,002,132,684 $67,821,927 $87,254,140
============ ============ ============== =========== ===========
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $527,868,394 $354,459,614 $2,221,337,440 $69,689,806 $82,280,732
Amount due from MONY America...... 22,659 10,491 41,687 1,921 189
Amount due from Enterprise
Accumulation Trust.............. 421,481 260,981 1,334,578 50,222 8,641
------------ ------------ -------------- ----------- -----------
Total assets............ 528,312,534 354,731,086 2,222,713,705 69,741,949 82,289,562
------------ ------------ -------------- ----------- -----------
LIABILITIES
Amount due to MONY America........ 421,481 260,981 1,334,578 50,222 8,641
Amount due to Enterprise
Accumulation Trust.............. 22,659 10,491 41,687 1,921 189
------------ ------------ -------------- ----------- -----------
Total liabilities....... 444,140 271,472 1,376,265 52,143 8,830
------------ ------------ -------------- ----------- -----------
Net assets........................ $527,868,394 $354,459,614 $2,221,337,440 $69,689,806 $82,280,732
============ ============ ============== =========== ===========
Net assets consist of:
Contractholders' net payments... $292,447,834 $170,188,328 $ 892,333,835 $54,924,533 $71,253,336
Undistributed net investment
income....................... 33,149,399 54,306,797 305,127,152 3,846,828 15,033,250
Accumulated net realized gain on
investments.................. 140,530,227 88,990,676 804,671,697 9,050,566 967,554
Unrealized appreciation
(depreciation) of
investments.................. 61,740,934 40,973,813 219,204,756 1,867,879 (4,973,408)
------------ ------------ -------------- ----------- -----------
Net assets........................ $527,868,394 $354,459,614 $2,221,337,440 $69,689,806 $82,280,732
============ ============ ============== =========== ===========
Number of units outstanding*...... 10,938,568 7,655,774 36,978,336 4,693,994 5,503,181
------------ ------------ -------------- ----------- -----------
Net asset value per unit
outstanding*.................... $ 48.26 $ 46.30 $ 60.07 $ 14.85 $ 14.95
============ ============ ============== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
57
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUEMASTER
-----------------------------------------------------
OCC ACCUMULATION TRUST
-----------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)........................ $ 835,632 $1,713,075 $2,366,323 $24,351,623
========== ========== ========== ===========
Investments in OCC Accumulation Trust, at net asset
value (Note 2).................................... $ 797,448 $2,306,205 $2,603,024 $32,474,260
Dividends Receivable................................ 1,362 0 0 0
---------- ---------- ---------- -----------
Net assets.......................................... $ 798,810 $2,306,205 $2,603,024 $32,474,260
========== ========== ========== ===========
Net assets consist of:
Contractholders' net payments..................... $ (610,407) $ (243,794) $1,271,891 $(3,210,166)
Undistributed net investment income............... 1,370,362 349,891 293,080 4,175,479
Accumulated net realized gain on investments...... 77,039 1,606,978 801,352 23,386,310
Unrealized appreciation (depreciation) of
investments.................................... (38,184) 593,130 236,701 8,122,637
---------- ---------- ---------- -----------
Net assets.......................................... $ 798,810 $2,306,205 $2,603,024 $32,474,260
========== ========== ========== ===========
Number of units outstanding*........................ 44,905 46,769 81,142 563,862
---------- ---------- ---------- -----------
Net asset value per unit outstanding*............... $ 17.79 $ 49.31 $ 32.08 $ 57.59
========== ========== ========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
58
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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.......... $ 124,351 $ 205,455 $ 2,160,506 $ 5,049,948 $ 197,329 $ 5,500,734
Mortality and expense
risk charges (Note
3)..................... (9,667) (7,707) (287,301) (564,977) (10,072) (1,490,114)
--------- --------- ----------- ------------ --------- -------------
Net investment income.... 114,684 197,748 1,873,205 4,484,971 187,257 4,010,620
--------- --------- ----------- ------------ --------- -------------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales.... 711,537 380,129 9,121,477 27,302,596 316,221 243,489,412
Cost of shares sold.... (371,883) (227,854) (8,746,625) (24,803,492) (204,530) (243,489,412)
--------- --------- ----------- ------------ --------- -------------
Net realized gain on
investments............ 339,654 152,275 374,852 2,499,104 111,691 0
Net increase (decrease)
in unrealized
appreciation of
investments............ (229,329) (208,351) (2,813,507) (13,206,765) (91,765) 0
--------- --------- ----------- ------------ --------- -------------
Net realized and
unrealized gain (loss)
on investments......... 110,325 (56,076) (2,438,655) (10,707,661) 19,926 0
--------- --------- ----------- ------------ --------- -------------
Net increase (decrease)
in net assets resulting
from operations........ $ 225,009 $ 141,672 $ (565,450) $ (6,222,690) $ 207,183 $ 4,010,620
========= ========= =========== ============ ========= =============
<CAPTION>
MONYMASTER VALUEMASTER
------------ -----------
MONY SERIES FUND, INC.
--------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
------------ -----------
<S> <C> <C>
Dividend income.......... $ 1,378,515 $ 54,118
Mortality and expense
risk charges (Note
3)..................... (286,580) (14,708)
------------ ---------
Net investment income.... 1,091,935 39,410
------------ ---------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales.... 12,475,580 619,102
Cost of shares sold.... (12,096,746) (619,102)
------------ ---------
Net realized gain on
investments............ 378,834 0
Net increase (decrease)
in unrealized
appreciation of
investments............ (1,933,979) 0
------------ ---------
Net realized and
unrealized gain (loss)
on investments......... (1,555,145) 0
------------ ---------
Net increase (decrease)
in net assets resulting
from operations........ $ (463,210) $ 39,410
============ =========
</TABLE>
See notes to financial statements.
59
<PAGE> 76
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Dividend income...................... $ 0 $ 0 $ 0 $ 0 $ 3,653,948
Mortality and expense risk charges
(Note 3)........................... (3,227,922) (2,151,285) (14,096,537) (445,415) (540,807)
------------ ------------ ------------- ------------ ------------
Net investment income (loss)......... (3,227,922) (2,151,285) (14,096,537) (445,415) 3,113,141
------------ ------------ ------------- ------------ ------------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales................ 96,810,580 73,166,703 422,214,063 17,860,910 17,171,423
Cost of shares sold................ (71,396,729) (52,605,618) (303,157,512) (16,268,687) (17,603,998)
------------ ------------ ------------- ------------ ------------
Net realized gain (loss) on
investments........................ 25,413,851 20,561,022 119,056,551 1,592,223 (432,573)
Net increase (decrease) in unrealized
appreciation of investments........ 17,474,560 24,553,809 42,549,884 (629,790) (1,489,181)
------------ ------------ ------------- ------------ ------------
Net realized and unrealized gain
(loss) on investments.............. 42,888,411 45,114,831 161,606,435 962,433 (1,921,754)
------------ ------------ ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations.......... $ 39,660,489 $ 42,963,546 $ 147,509,898 $ 517,018 $ 1,191,387
============ ============ ============= ============ ============
</TABLE>
See notes to financial statements.
60
<PAGE> 77
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUEMASTER
--------------------------------------------------------
OCC ACCUMULATION TRUST
--------------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Dividend income................................... $ 21,879 $ 138,601 $ 16,419 $ 1,770,170
Mortality and expense risk charges (Note 3)....... (5,845) (15,692) (15,571) (216,581)
--------- --------- --------- -----------
Net investment income............................. 16,034 122,909 848 1,553,589
--------- --------- --------- -----------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales............................. 347,621 904,975 290,959 7,498,913
Cost of shares sold............................. (359,700) (430,985) (233,921) (3,767,888)
--------- --------- --------- -----------
Net realized gain (loss) on investments........... (12,079) 473,990 57,038 3,731,025
Net increase (decrease) in unrealized appreciation
of investments.................................. (28,732) (366,241) 5,108 (3,035,594)
--------- --------- --------- -----------
Net realized and unrealized gain (loss) on
investments..................................... (40,811) 107,749 62,146 695,431
--------- --------- --------- -----------
Net increase (decrease) in net assets resulting
from operations................................. $ (24,777) $ 230,658 $ 62,994 $ 2,249,020
========= ========= ========= ===========
</TABLE>
See notes to financial statements.
61
<PAGE> 78
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 114,684 $ 225,073 $ 197,748 $ 186,231 $ 1,873,205 $ 1,494,311
Net realized gain on
investments.................... 339,654 131,932 152,275 154,874 374,852 888,198
Net increase (decrease) in
unrealized appreciation of
investments.................... (229,329) (34,914) (208,351) (198,816) (2,813,507) 76,556
---------- ---------- ---------- ---------- ------------ -----------
Net increase (decrease) in net
assets resulting from
operations....................... 225,009 322,091 141,672 142,289 (565,450) 2,459,065
---------- ---------- ---------- ---------- ------------ -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 110,220 29,672 21,450 33,985 5,426,664 20,238,046
Net asset value of units redeemed
or used to meet contract
obligations.................... (314,159) (276,074) (203,056) (329,978) (8,524,550) (11,236,483)
---------- ---------- ---------- ---------- ------------ -----------
Net increase (decrease) from unit
transactions..................... (203,939) (246,402) (181,606) (295,993) (3,097,886) 9,001,563
---------- ---------- ---------- ---------- ------------ -----------
Net increase (decrease) in net
assets........................... 21,070 75,689 (39,934) (153,704) (3,663,336) 11,460,628
Net assets beginning of period..... 1,576,054 1,500,365 1,284,330 1,438,034 47,321,829 35,861,201
---------- ---------- ---------- ---------- ------------ -----------
Net assets end of period*.......... $1,597,124 $1,576,054 $1,244,396 $1,284,330 $ 43,658,493 $47,321,829
========== ========== ========== ========== ============ ===========
Units outstanding beginning of
period........................... 31,847 37,580 30,115 37,519 2,414,529 1,941,792
Units issued during the period..... 1,731 679 363 802 278,227 1,055,742
Units redeemed during the period... (5,859) (6,412) (4,478) (8,206) (437,788) (583,005)
---------- ---------- ---------- ---------- ------------ -----------
Units outstanding end of period.... 27,719 31,847 26,000 30,115 2,254,968 2,414,529
========== ========== ========== ========== ============ ===========
- ---------------
* Includes undistributed net
investment income of: $ 568,337 $ 453,653 $ 903,513 $ 705,765 $ 9,379,510 $ 7,506,305
<CAPTION>
MONYMASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
LONG TERM BOND
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 4,484,971 $ 2,645,761
Net realized gain on
investments.................... 2,499,104 3,237,119
Net increase (decrease) in
unrealized appreciation of
investments.................... (13,206,765) 71,611
------------ ------------
Net increase (decrease) in net
assets resulting from
operations....................... (6,222,690) 5,954,491
------------ ------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 11,347,949 60,292,920
Net asset value of units redeemed
or used to meet contract
obligations.................... (25,334,176) (27,360,952)
------------ ------------
Net increase (decrease) from unit
transactions..................... (13,986,227) 32,931,968
------------ ------------
Net increase (decrease) in net
assets........................... (20,208,917) 38,886,459
Net assets beginning of period..... 99,244,109 60,357,650
------------ ------------
Net assets end of period*.......... $ 79,035,192 $ 99,244,109
============ ============
Units outstanding beginning of
period........................... 4,000,596 2,645,732
Units issued during the period..... 467,575 2,492,768
Units redeemed during the period... (1,056,413) (1,137,904)
------------ ------------
Units outstanding end of period.... 3,411,758 4,000,596
============ ============
- ---------------
* Includes undistributed net
investment income of: $ 18,143,795 $ 13,658,824
</TABLE>
See notes to financial statements.
62
<PAGE> 79
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------------------
DIVERSIFIED MONEY MARKET GOVERNMENT SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- ------------------------------ ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ -------------- ------------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 187,257 $ 322,270 $ 4,010,620 $ 8,309,890 $ 1,091,935 $ 549,166
Net realized gain on
investments.................... 111,691 156,896 0 0 378,834 773,944
Net increase (decrease) in
unrealized appreciation of
investments.................... (91,765) (192,414) 0 0 (1,933,979) 207,004
---------- ---------- -------------- ------------- ------------ -----------
Net increase (decrease) in net
assets resulting from
operations....................... 207,183 286,752 4,010,620 8,309,890 (463,210) 1,530,114
---------- ---------- -------------- ------------- ------------ -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 25,536 71,356 138,922,610 1,105,652,600 9,496,288 34,260,541
Net asset value of units redeemed
or used to meet contract
obligations.................... (125,883) (461,042) (225,096,994) (956,073,355) (11,720,156) (11,620,889)
---------- ---------- -------------- ------------- ------------ -----------
Net increase (decrease) from unit
transactions..................... (100,347) (389,686) (86,174,384) 149,579,245 (2,223,868) 22,639,652
---------- ---------- -------------- ------------- ------------ -----------
Net increase (decrease) in net
assets........................... 106,836 (102,934) (82,163,764) 157,889,135 (2,687,078) 24,169,766
Net assets beginning of period..... 1,570,366 1,673,300 287,969,575 130,080,440 45,153,237 20,983,471
---------- ---------- -------------- ------------- ------------ -----------
Net assets end of period*.......... $1,677,202 $1,570,366 $ 205,805,811 $ 287,969,575 $ 42,466,159 $45,153,237
========== ========== ============== ============= ============ ===========
Units outstanding beginning of
period........................... 42,575 55,440 18,280,159 8,585,010 3,591,602 1,761,542
Units issued during the period..... 441 2,111 8,751,401 71,354,491 756,947 2,769,576
Units redeemed during the period... (3,192) (14,976) (14,182,889) (61,659,342) (937,554) (939,516)
---------- ---------- -------------- ------------- ------------ -----------
Units outstanding end of period.... 39,824 42,575 12,848,671 18,280,159 3,410,995 3,591,602
========== ========== ============== ============= ============ ===========
- ---------------
* Includes undistributed net
investment income of: $1,240,444 $1,053,187 $ 28,331,575 $ 24,320,955 $ 2,093,942 $ 1,002,007
<CAPTION>
VALUEMASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
MONEY MARKET
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 39,410 $ 77,747
Net realized gain on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 39,410 77,747
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,352,509 4,927,649
Net asset value of units redeemed
or used to meet contract
obligations.................... (574,050) (4,747,240)
----------- -----------
Net increase (decrease) from unit
transactions..................... 778,459 180,409
----------- -----------
Net increase (decrease) in net
assets........................... 817,869 258,156
Net assets beginning of period..... 1,960,142 1,701,986
----------- -----------
Net assets end of period*.......... $ 2,778,011 $ 1,960,142
=========== ===========
Units outstanding beginning of
period........................... 136,239 122,178
Units issued during the period..... 93,251 347,333
Units redeemed during the period... (39,593) (333,272)
----------- -----------
Units outstanding end of period.... 189,897 136,239
=========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 1,204,746 $ 404,185
</TABLE>
See notes to financial statements.
63
<PAGE> 80
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------------
EQUITY SMALL COMPANY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- -------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------- ------------ ------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $(3,227,922) $ 17,035,596 $(2,151,285) $ 17,214,203 $ (14,096,537) $ 155,340,057
Net realized gain (loss) on
investments.................. 25,413,851 60,301,202 20,561,022 49,018,291 119,056,551 334,350,165
Net increase (decrease) in
unrealized appreciation of
investments.................. 17,474,560 (43,212,812) 24,553,809 (45,383,177) 42,549,884 (358,930,321)
------------ ------------- ------------ ------------- -------------- --------------
Net increase (decrease) in net
assets resulting from
operations..................... 39,660,489 34,123,986 42,963,546 20,849,317 147,509,898 130,759,901
------------ ------------- ------------ ------------- -------------- --------------
From unit transactions:
Net proceeds from the issuance
of units..................... 59,214,659 208,152,834 35,608,582 143,928,984 131,755,810 669,500,974
Net asset value of units
redeemed or used to meet
contract obligations......... (91,337,160) (163,245,612) (67,335,255) (138,895,329) (395,255,619) (775,855,076)
------------ ------------- ------------ ------------- -------------- --------------
Net increase (decrease) from
unit transactions.............. (32,122,501) 44,907,222 (31,726,673) 5,033,655 (263,499,809) (106,354,102)
------------ ------------- ------------ ------------- -------------- --------------
Net increase (decrease) in net
assets......................... 7,537,988 79,031,208 11,236,873 25,882,972 (115,989,911) 24,405,799
Net assets beginning of
period......................... 520,330,406 441,299,198 343,222,741 317,339,769 2,337,327,351 2,312,921,552
------------ ------------- ------------ ------------- -------------- --------------
Net assets end of period*....... $527,868,394 $520,330,406 $354,459,614 $343,222,741 $2,221,337,440 $2,337,327,351
============ ============= ============ ============= ============== ==============
Units outstanding beginning of
period......................... 11,629,793 10,706,757 8,392,405 8,401,211 41,556,499 43,843,754
Units issued during the
period......................... 1,305,409 4,840,471 836,915 3,677,232 2,294,443 12,310,620
Units redeemed during the
period......................... (1,996,634) (3,917,435) (1,573,546) (3,686,038) (6,872,606) (14,597,875)
------------ ------------- ------------ ------------- -------------- --------------
Units outstanding end of
period......................... 10,938,568 11,629,793 7,655,774 8,392,405 36,978,336 41,556,499
============ ============= ============ ============= ============== ==============
- ---------------
* Includes undistributed net
investment
income of: $33,149,399 $ 36,377,321 $54,306,797 $ 56,458,082 $ 305,127,152 $ 319,223,689
<CAPTION>
MONYMASTER
---------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (445,415) $ 2,664,002 $ 3,113,141 $ 6,340,249
Net realized gain (loss) on
investments.................. 1,592,223 3,212,062 (432,573) 686,650
Net increase (decrease) in
unrealized appreciation of
investments.................. (629,790) 1,983,502 (1,489,181) (5,646,150)
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations..................... 517,018 7,859,566 1,191,387 1,380,749
------------ ------------ ------------ ------------
From unit transactions:
Net proceeds from the issuance
of units..................... 13,148,567 24,902,914 10,671,034 44,173,041
Net asset value of units
redeemed or used to meet
contract obligations......... (16,916,068) (24,998,725) (16,181,817) (17,825,323)
------------ ------------ ------------ ------------
Net increase (decrease) from
unit transactions.............. (3,767,501) (95,811) (5,510,783) 26,347,718
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets......................... (3,250,483) 7,763,755 (4,319,396) 27,728,467
Net assets beginning of
period......................... 72,940,289 65,176,534 86,600,128 58,871,661
------------ ------------ ------------ ------------
Net assets end of period*....... $69,689,806 $72,940,289 $82,280,732 $ 86,600,128
============ ============ ============ ============
Units outstanding beginning of
period......................... 4,954,694 5,021,078 5,868,866 4,081,656
Units issued during the
period......................... 895,798 1,790,119 712,302 3,012,678
Units redeemed during the
period......................... (1,156,498) (1,856,503) (1,077,987) (1,225,468)
------------ ------------ ------------ ------------
Units outstanding end of
period......................... 4,693,994 4,954,694 5,503,181 5,868,866
============ ============ ============ ============
- ---------------
* Includes undistributed net
investment
income of: $ 3,846,828 $ 4,292,243 $15,033,250 $ 11,920,109
</TABLE>
See notes to financial statements.
64
<PAGE> 81
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VALUEMASTER
---------------------------------------------------------------------------------------
OCC ACCUMULATION TRUST
---------------------------------------------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............. $ 16,034 $ 55,137 $ 122,909 $ 130,385 $ 848 $ 120,856
Net realized gain (loss) on
investments..................... (12,079) 60,866 473,990 527,393 57,038 460,748
Net increase (decrease) in
unrealized appreciation of
investments..................... (28,732) (42,129) (366,241) (370,869) 5,108 (935,652)
---------- ----------- ---------- ----------- ---------- -----------
Net increase (decrease) in net
assets resulting from
operations........................ (24,777) 73,874 230,658 286,909 62,994 (354,048)
---------- ----------- ---------- ----------- ---------- -----------
From unit transactions:
Net proceeds from the issuance of
units........................... 188,938 1,261,119 471,854 181,362 65,946 644,248
Net asset value of units redeemed
or used to meet contract
obligations..................... (341,744) (1,645,115) (889,755) (1,024,747) (271,769) (1,633,006)
---------- ----------- ---------- ----------- ---------- -----------
Net decrease from unit
transactions...................... (152,806) (383,996) (417,901) (843,385) (205,823) (988,758)
---------- ----------- ---------- ----------- ---------- -----------
Net decrease in net assets......... (177,583) (310,122) (187,243) (556,476) (142,829) (1,342,806)
Net assets beginning of period..... 976,393 1,286,515 2,493,448 3,049,924 2,745,853 4,088,659
---------- ----------- ---------- ----------- ---------- -----------
Net assets end of period*.......... $ 798,810 $ 976,393 $2,306,205 $ 2,493,448 $2,603,024 $ 2,745,853
========== =========== ========== =========== ========== ===========
Units outstanding beginning of
period............................ 53,421 75,192 55,058 74,411 88,120 117,879
Units issued during the period..... 10,498 70,341 10,413 3,895 2,277 18,913
Units redeemed during the period... (19,014) (92,112) (18,702) (23,248) (9,255) (48,672)
---------- ----------- ---------- ----------- ---------- -----------
Units outstanding end of period.... 44,905 53,421 46,769 55,058 81,142 88,120
========== =========== ========== =========== ========== ===========
- ---------------
* Includes undistributed net
investment income of: $1,370,362 $ 408,838 $ 349,891 $ 226,982 $ 293,080 $ 292,232
<CAPTION>
VALUEMASTER
---------------------------
OCC ACCUMULATION TRUST
---------------------------
MANAGED
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............. $ 1,553,589 $ 1,220,397
Net realized gain (loss) on
investments..................... 3,731,025 8,304,096
Net increase (decrease) in
unrealized appreciation of
investments..................... (3,035,594) (6,813,165)
----------- ------------
Net increase (decrease) in net
assets resulting from
operations........................ 2,249,020 2,711,328
----------- ------------
From unit transactions:
Net proceeds from the issuance of
units........................... 233,024 2,807,780
Net asset value of units redeemed
or used to meet contract
obligations..................... (7,068,324) (16,067,125)
----------- ------------
Net decrease from unit
transactions...................... (6,835,300) (13,259,345)
----------- ------------
Net decrease in net assets......... (4,586,280) (10,548,017)
Net assets beginning of period..... 37,060,540 47,608,557
----------- ------------
Net assets end of period*.......... $32,474,260 $ 37,060,540
=========== ============
Units outstanding beginning of
period............................ 685,762 932,054
Units issued during the period..... 4,336 54,133
Units redeemed during the period... (126,236) (300,425)
----------- ------------
Units outstanding end of period.... 563,862 685,762
=========== ============
- ---------------
* Includes undistributed net
investment income of: $ 4,175,479 $ 2,621,890
</TABLE>
See notes to financial statements.
65
<PAGE> 82
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 the
MONYMaster and the 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 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.
Purchase payments received from MONY America by the Variable Account
represent gross purchase payments recorded by MONY America less deductions
retained for any premium taxes.
A periodic deduction is made from the cash value of the contract for the
Annual Contract Charge. The deduction is for the expenses of administration and
is treated by the Variable Account as a contractholder redemption. The amount
deducted for all subaccounts for 1999 was $1,372,111.
66
<PAGE> 83
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 1.25 percent of aggregate
average daily net assets 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 June 30, 1999 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
period:
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
---------- ---------- ----------- ------------ ---------- -------------
Shares acquired:
Shares............. 11,616 6,898 512,572 926,011 9,441 155,824,914
Amount............. $ 497,931 $ 190,816 $ 5,736,290 $ 12,751,392 $ 205,802 $ 155,824,914
Shares received for
reinvestment of
dividends:
Shares............. 3,051 8,427 200,791 398,575 9,891 5,500,734
Amount............. $ 124,351 $ 205,455 $ 2,160,506 $ 5,049,948 $ 197,329 $ 5,500,734
Shares redeemed:
Shares............. (17,254) (13,964) (821,222) (2,020,728) (15,094) (243,489,412)
Amount............. $ (371,883) $ (227,854) $(8,746,625) $(24,803,492) $ (204,530) $(243,489,412)
---------- ---------- ----------- ------------ ---------- -------------
Net change:
Shares............. (2,587) 1,361 (107,859) (696,142) 4,238 (82,163,764)
Amount............. $ 250,399 $ 168,417 $ (849,829) $ (7,002,152) $ 198,601 $ (82,163,764)
---------- ---------- ----------- ------------ ---------- -------------
Shares end of period:
Shares............. 38,671 50,854 4,068,825 6,307,677 83,111 205,805,811
Amount............. $1,345,607 $1,159,007 $44,618,444 $ 86,499,208 $1,473,055 $ 205,805,811
========== ========== =========== ============ ========== =============
<CAPTION>
MONYMASTER VALUEMASTER
------------ -----------
MONY SERIES FUND, INC.
--------------------------
GOVERNMENT MONEY
SECURITIES MARKET
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C> <C>
Shares beginning of
period:
Shares............. 4,042,367 1,960,142
Amount............. $ 44,070,585 $1,960,142
------------ ----------
Shares acquired:
Shares............. 895,148 1,382,853
Amount............. $ 9,965,133 $1,382,853
Shares received for
reinvestment of
dividends:
Shares............. 127,404 54,118
Amount............. $ 1,378,515 $ 54,118
Shares redeemed:
Shares............. (1,132,867) (619,102)
Amount............. $(12,096,746) $ (619,102)
------------ ----------
Net change:
Shares............. (110,315) 817,869
Amount............. $ (753,098) $ 817,869
------------ ----------
Shares end of period:
Shares............. 3,932,052 2,778,011
Amount............. $ 43,317,487 $2,778,011
============ ==========
</TABLE>
67
<PAGE> 84
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENT (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at June 30, 1999
consist of the following:
<TABLE>
<CAPTION>
MONYMASTER
----------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL
EQUITY VALUE MANAGED GROWTH HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares........................... 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
------------ ------------ -------------- ------------ ------------
Shares acquired:
Shares........................... 1,641,293 1,372,863 3,469,001 2,025,303 2,067,904
Amount........................... $ 61,460,157 $ 39,288,745 $ 144,617,717 $ 13,647,994 $ 11,119,833
Shares received for reinvestment of
dividends:
Shares........................... 0 0 0 0 682,660
Amount........................... $ 0 $ 0 $ 0 $ 0 $ 3,653,948
Shares redeemed:
Shares........................... (2,559,800) (2,542,085) (10,123,927) (2,658,736) (3,204,697)
Amount........................... $(71,396,729) $(52,605,681) $ (303,157,512) $(16,268,687) $(17,603,996)
------------ ------------ -------------- ------------ ------------
Net change:
Shares........................... (918,507) (1,169,222) (6,654,926) (633,433) (454,133)
Amount........................... $ (9,936,572) $(13,316,936) $ (158,539,795) $ (2,620,693) $ (2,830,215)
------------ ------------ -------------- ------------ ------------
Shares end of period:
Shares........................... 13,213,225 11,375,469 50,971,488 10,188,568 15,672,520
Amount........................... $466,127,460 $313,485,801 $2,002,132,684 $ 67,821,927 $ 87,254,140
============ ============ ============== ============ ============
</TABLE>
Investments in OCC Accumulation Trust at cost, at June 30, 1999 consist of
the following:
<TABLE>
<CAPTION>
VALUEMASTER
--------------------------------------------------------
OCC ACCUMULATION TRUST
--------------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Shares beginning of period:
Shares..................................... 91,594 64,430 118,868 847,291
Amount..................................... $ 985,845 $1,534,077 $2,514,260 $25,902,309
--------- ---------- ---------- -----------
Shares acquired:
Shares..................................... 18,110 12,367 3,272 10,549
Amount..................................... $ 187,608 $ 471,382 $ 69,565 $ 447,032
Shares received for reinvestment of
dividends:
Shares..................................... 1,969 3,894 789 43,611
Amount..................................... $ 21,879 $ 138,601 $ 16,419 $ 1,770,170
Shares redeemed:
Shares..................................... (33,492) (23,209) (13,375) (172,839)
Amount..................................... $(359,700) $ (430,985) $ (233,921) $(3,767,888)
--------- ---------- ---------- -----------
Net change:
Shares..................................... (13,413) (6,948) (9,314) (118,679)
Amount..................................... $(150,213) $ 178,998 $ (147,937) $(1,550,686)
--------- ---------- ---------- -----------
Shares end of period:
Shares..................................... 78,181 57,482 109,554 728,612
Amount..................................... $ 835,632 $1,713,075 $2,366,323 $24,351,623
========= ========== ========== ===========
</TABLE>
68
<PAGE> 85
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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)...................... $4,591,384 $8,467,825 $7,229,558 $23,349,064 $14,626,235 $15,042,237 $72,195,557
========== ========== ========== =========== =========== =========== ===========
Investments in Enterprise
Accumulation Trust, at
net asset value (Note
2)...................... $ 0 $ 0 $ 0 $ 0 $15,290,477 $16,086,503 $74,482,516
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... 4,420,257 7,916,814 7,046,569 23,349,064 0 0 0
Amount due from Enterprise
Accumulation Trust...... 0 0 0 0 959 634 11,964
Amount due from MONY
America................. 2,281 88,204 38,519 416,830 167,737 0 1,051,264
Amount due from MONY
Series Fund, Inc........ 0 597 496 875 0 0 0
---------- ---------- ---------- ----------- ----------- ----------- -----------
Total assets..... 4,422,538 8,005,615 7,085,584 23,766,769 15,459,173 16,087,137 75,545,744
---------- ---------- ---------- ----------- ----------- ----------- -----------
LIABILITIES
Amount due to Enterprise
Accumulation Trust...... 0 0 0 0 167,737 0 1,051,264
Amount due to MONY
America................. 0 597 496 875 959 634 11,964
Amount due to MONY Series
Fund, Inc............... 2,281 88,204 38,519 416,830 0 0 0
---------- ---------- ---------- ----------- ----------- ----------- -----------
Total
liabilities.... 2,281 88,801 39,015 417,705 168,696 634 1,063,228
---------- ---------- ---------- ----------- ----------- ----------- -----------
Net assets................ $4,420,257 $7,916,814 $7,046,569 $23,349,064 $15,290,477 $16,086,503 $74,482,516
========== ========== ========== =========== =========== =========== ===========
Net assets consist of:
Contractholders' net
payments.............. $4,452,533 $8,197,392 $7,093,162 $23,168,498 $14,597,847 $14,994,039 $72,067,264
Undistributed net
investment income
(loss)................ 143,923 328,943 149,430 180,566 (40,388) (38,440) (187,274)
Accumulated net realized
gain (loss) on
investments........... (5,072) (58,510) (13,034) 0 68,776 86,638 315,567
Unrealized appreciation
(depreciation) of
investments........... (171,127) (551,011) (182,989) 0 664,242 1,044,266 2,286,959
---------- ---------- ---------- ----------- ----------- ----------- -----------
Net assets................ $4,420,257 $7,916,814 $7,046,569 $23,349,064 $15,290,477 $16,086,503 $74,482,516
========== ========== ========== =========== =========== =========== ===========
Number of units
outstanding*............ 447,415 852,808 712,918 2,289,704 1,421,321 1,345,322 6,995,263
---------- ---------- ---------- ----------- ----------- ----------- -----------
Net asset value per unit
outstanding*............ $ 9.88 $ 9.28 $ 9.88 $ 10.20 $ 10.76 $ 11.96 $ 10.65
========== ========== ========== =========== =========== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
69
<PAGE> 86
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<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)....................... $6,126,844 $6,849,473 $108,050,979 $27,819,040 $4,588,842 $12,882,892 $11,214,715
========== ========== ============ =========== ========== =========== ===========
Investments in Enterprise
Accumulation Trust, at
net asset value (Note
2)....................... $6,208,200 $6,706,923 $111,251,764 $30,102,863 $5,228,448 $13,333,618 $11,796,662
Amount due from MONY
America.................. 62,509 67,672 2,111,998 361,456 9,021 130,309 162,987
Amount due from Enterprise
Accumulation Trust ...... 0 525 9,839 3,870 430 2,032 119
---------- ---------- ------------ ----------- ---------- ----------- -----------
Total assets...... 6,270,709 6,775,120 113,373,601 30,468,189 5,237,899 13,465,959 11,959,768
---------- ---------- ------------ ----------- ---------- ----------- -----------
LIABILITIES
Amount due to MONY
America.................. 0 525 9,839 3,870 430 2,032 119
Amount due to Enterprise
Accumulation Trust....... 62,509 67,672 2,111,998 361,456 9,021 130,309 162,987
---------- ---------- ------------ ----------- ---------- ----------- -----------
Total
liabilities..... 62,509 68,197 2,121,837 365,326 9,451 132,341 163,106
---------- ---------- ------------ ----------- ---------- ----------- -----------
Net assets................. $6,208,200 $6,706,923 $111,251,764 $30,102,863 $5,228,448 $13,333,618 $11,796,662
========== ========== ============ =========== ========== =========== ===========
Net assets consist of:
Contractholders' net
payments............... $6,134,127 $6,743,129 $107,679,186 $27,658,225 $4,578,885 $12,838,614 $11,158,972
Undistributed net
investment income
(loss)................. (15,083) 109,193 (279,571) (71,120) (12,078) (3,930) (26,552)
Accumulated net realized
gain (loss) on
investments............ 7,800 (2,849) 651,364 231,935 22,035 48,208 82,295
Unrealized appreciation
(depreciation) of
investments............ 81,356 (142,550) 3,200,785 2,283,823 639,606 450,726 581,947
---------- ---------- ------------ ----------- ---------- ----------- -----------
Net assets................. $6,208,200 $6,706,923 $111,251,764 $30,102,863 $5,228,448 $13,333,618 $11,796,662
========== ========== ============ =========== ========== =========== ===========
Number of units
outstanding*............. 583,198 662,666 9,581,456 2,518,648 422,777 1,176,359 976,599
---------- ---------- ------------ ----------- ---------- ----------- -----------
Net asset value per unit
outstanding*............. $ 10.65 $ 10.12 $ 11.61 $ 11.95 $ 12.37 $ 11.33 $ 12.08
========== ========== ============ =========== ========== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
70
<PAGE> 87
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM 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............................. $ 157,156 $ 354,278 $ 173,261 $ 246,837
Mortality and expense risk charges (Note
3)........................................ (13,149) (25,177) (23,629) (67,497)
--------- ----------- ----------- ------------
Net investment income (loss)................ 144,007 329,101 149,632 179,340
--------- ----------- ----------- ------------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales....................... 602,162 1,053,291 1,026,763 16,269,210
Cost of shares sold....................... (607,234) (1,111,778) (1,039,797) (16,269,210)
--------- ----------- ----------- ------------
Net realized gain (loss) on investments..... (5,072) (58,487) (13,034) 0
Net increase (decrease) in unrealized
appreciation of investments............... (171,603) (551,654) (183,750) 0
--------- ----------- ----------- ------------
Net realized and unrealized gain (loss) on
investments............................... (176,675) (610,141) (196,784) 0
--------- ----------- ----------- ------------
Net increase (decrease) in net assets
resulting from operations................. $ (32,668) $ (281,040) $ (47,152) $ 179,340
========= =========== =========== ============
<CAPTION>
MONY CUSTOM MASTER
-------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- -----------
<S> <C> <C> <C>
Dividend income............................. $ 0 $ 0 $ 0
Mortality and expense risk charges (Note
3)........................................ (40,186) (38,304) (186,627)
----------- ----------- -----------
Net investment income (loss)................ (40,186) (38,304) (186,627)
----------- ----------- -----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales....................... 1,242,856 1,193,086 5,937,658
Cost of shares sold....................... (1,173,694) (1,106,524) (5,620,916)
----------- ----------- -----------
Net realized gain (loss) on investments..... 69,162 86,562 316,742
Net increase (decrease) in unrealized
appreciation of investments............... 651,323 1,024,349 2,257,867
----------- ----------- -----------
Net realized and unrealized gain (loss) on
investments............................... 720,485 1,110,911 2,574,609
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations................. $ 680,299 $ 1,072,607 $ 2,387,982
=========== =========== ===========
</TABLE>
See notes to financial statements.
71
<PAGE> 88
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Dividend income............................... $ 0 $ 127,562 $ 0 $ 0
Mortality and expense risk charges (Note 3)... (14,996) (18,813) (278,979) (71,045)
--------- --------- ------------ -----------
Net investment income (loss).................. (14,996) 108,749 (278,979) (71,045)
--------- --------- ------------ -----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales......................... 611,149 624,310 10,694,745 2,236,553
Cost of shares sold......................... (603,353) (627,159) (10,043,525) (2,004,619)
--------- --------- ------------ -----------
Net realized gain (loss) on investments....... 7,796 (2,849) 651,220 231,934
Net increase (decrease) in unrealized
appreciation of investments................. 76,148 (142,909) 3,165,130 2,277,645
--------- --------- ------------ -----------
Net realized and unrealized gain (loss) on
investments................................. 83,944 (145,758) 3,816,350 2,509,579
--------- --------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations................... $ 68,948 $ (37,009) $ 3,537,371 $ 2,438,534
========= ========= ============ ===========
<CAPTION>
MONY CUSTOM MASTER
-------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ------------
<S> <C> <C> <C>
Dividend income............................... $ 0 $ 24,851 $ 0
Mortality and expense risk charges (Note 3)... (12,011) (28,734) (26,503)
--------- -------- -----------
Net investment income (loss).................. (12,011) (3,883) (26,503)
--------- -------- -----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales......................... 552,676 640,080 1,098,559
Cost of shares sold......................... (530,645) (591,873) (1,016,268)
--------- -------- -----------
Net realized gain (loss) on investments....... 22,031 48,207 82,291
Net increase (decrease) in unrealized
appreciation of investments................. 630,661 449,002 572,998
--------- -------- -----------
Net realized and unrealized gain (loss) on
investments................................. 652,692 497,209 655,289
--------- -------- -----------
Net increase (decrease) in net assets
resulting from operations................... $ 640,681 $493,326 $ 628,786
========= ======== ===========
</TABLE>
See notes to financial statements.
72
<PAGE> 89
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 8, 1998** MONTHS ENDED DECEMBER 2, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------ ------------ ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ 144,007 $ (84) $ 329,101 $ (158)
Net realized gain (loss) on
investments................... (5,072) 0 (58,487) (23)
Net increase (decrease) in
unrealized appreciation of
investments................... (171,603) 476 (551,654) 643
---------- -------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations...................... (32,668) 392 (281,040) 462
---------- -------- ---------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 4,414,104 244,986 8,344,860 387,777
Net asset value of units
redeemed or used to meet
contract obligations.......... (206,557) 0 (535,245) 0
---------- -------- ---------- --------
Net increase from unit
transactions.................... 4,207,547 244,986 7,809,615 387,777
---------- -------- ---------- --------
Net increase in net assets....... 4,174,879 245,378 7,528,575 388,239
Net assets beginning of period... 245,378 0 388,239 0
---------- -------- ---------- --------
Net assets end of period*........ $4,420,257 $245,378 $7,916,814 $388,239
========== ======== ========== ========
Units outstanding beginning of
period.......................... 24,535 0 39,054 0
Units issued during the period... 443,713 24,535 870,003 39,054
Units redeemed during the
period.......................... (20,833) 0 (56,249) 0
---------- -------- ---------- --------
Units outstanding end of
period.......................... 447,415 24,535 852,808 39,054
========== ======== ========== ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 143,923 $ (84) $ 328,943 $ (158)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------
GOVERNMENT SECURITIES MONEY MARKET
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 2, 1998** MONTHS ENDED DECEMBER 2, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------ ------------ ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ 149,632 $ (202) $ 179,340 $ 1,226
Net realized gain (loss) on
investments................... (13,034) 0 0 0
Net increase (decrease) in
unrealized appreciation of
investments................... (183,750) 761 0 0
---------- -------- ----------- ----------
Net increase (decrease) in net
assets resulting from
operations...................... (47,152) 559 179,340 1,226
---------- -------- ----------- ----------
From unit transactions:
Net proceeds from the issuance
of units...................... 6,966,271 546,179 34,061,175 1,599,084
Net asset value of units
redeemed or used to meet
contract obligations.......... (419,288) 0 (12,320,478) (171,283)
---------- -------- ----------- ----------
Net increase from unit
transactions.................... 6,546,983 546,179 21,740,697 1,427,801
---------- -------- ----------- ----------
Net increase in net assets....... 6,499,831 546,738 21,920,037 1,429,027
Net assets beginning of period... 546,738 0 1,429,027 0
---------- -------- ----------- ----------
Net assets end of period*........ $7,046,569 $546,738 $23,349,064 $1,429,027
========== ======== =========== ==========
Units outstanding beginning of
period.......................... 54,777 0 142,487 0
Units issued during the period... 700,460 54,777 3,364,373 159,572
Units redeemed during the
period.......................... (42,319) 0 (1,217,156) (17,085)
---------- -------- ----------- ----------
Units outstanding end of
period.......................... 712,918 54,777 2,289,704 142,487
========== ======== =========== ==========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 149,430 $ (202) $ 180,566 $ 1,226
** Commencement of operations
</TABLE>
See notes to financial statements.
73
<PAGE> 90
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------------------
EQUITY SMALL COMPANY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------------- ---------------------------------- ------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD FOR THE SIX
MONTHS ENDED DECEMBER 1, 1998** MONTHS ENDED DECEMBER 3, 1998** MONTHS ENDED
JUNE 30, THROUGH JUNE 30, THROUGH JUNE 30,
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998 1999
------------ ------------------ ------------ ------------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............ $ (40,186) $ (202) $ (38,304) $ (136) $ (186,627)
Net realized gain (loss) on
investments........................... 69,162 (386) 86,562 76 316,742
Net increase (decrease) in unrealized
appreciation of investments........... 651,323 12,919 1,024,349 19,917 2,257,867
----------- -------- ----------- -------- -----------
Net increase (decrease) in net assets
resulting from operations............... 680,299 12,331 1,072,607 19,857 2,387,982
----------- -------- ----------- -------- -----------
From unit transactions:
Net proceeds from the issuance of
units................................. 14,330,674 631,080 14,972,317 362,502 73,124,485
Net asset value of units redeemed or
used to meet contract obligations..... (363,907) 0 (340,780) 0 (3,181,147)
----------- -------- ----------- -------- -----------
Net increase from unit transactions...... 13,966,767 631,080 14,631,537 362,502 69,943,338
----------- -------- ----------- -------- -----------
Net increase in net assets............... 14,647,066 643,411 15,704,144 382,359 72,331,320
Net assets beginning of period........... 643,411 0 382,359 0 2,151,196
----------- -------- ----------- -------- -----------
Net assets end of period*................ $15,290,477 $643,411 $16,086,503 $382,359 $74,482,516
=========== ======== =========== ======== ===========
Units outstanding beginning of period.... 64,500 0 36,198 0 215,756
Units issued during the period........... 1,391,742 64,500 1,340,090 36,198 7,087,285
Units redeemed during the period......... (34,921) 0 (30,966) 0 (307,778)
----------- -------- ----------- -------- -----------
Units outstanding end of period.......... 1,421,321 64,500 1,345,322 36,198 6,995,263
=========== ======== =========== ======== ===========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (40,388) $ (202) $ (38,440) $ (136) $ (187,274)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------
MANAGED INTERNATIONAL GROWTH
SUBACCOUNT SUBACCOUNT
------------------- ----------------------------------
FOR THE PERIOD FOR THE SIX FOR THE PERIOD
DECEMBER 1, 1998** MONTHS ENDED DECEMBER 3, 1998**
THROUGH JUNE 30, THROUGH
DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------------ ------------ ------------------
(UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income (loss)............ $ (647) $ (14,996) $ (87)
Net realized gain (loss) on
investments........................... (1,175) 7,796 4
Net increase (decrease) in unrealized
appreciation of investments........... 29,092 76,148 5,208
---------- ---------- --------
Net increase (decrease) in net assets
resulting from operations............... 27,270 68,948 5,125
---------- ---------- --------
From unit transactions:
Net proceeds from the issuance of
units................................. 2,123,926 6,173,075 161,753
Net asset value of units redeemed or
used to meet contract obligations..... 0 (200,701) 0
---------- ---------- --------
Net increase from unit transactions...... 2,123,926 5,972,374 161,753
---------- ---------- --------
Net increase in net assets............... 2,151,196 6,041,322 166,878
Net assets beginning of period........... 0 166,878 0
---------- ---------- --------
Net assets end of period*................ $2,151,196 $6,208,200 $166,878
========== ========== ========
Units outstanding beginning of period.... 0 15,811 0
Units issued during the period........... 215,756 586,644 15,811
Units redeemed during the period......... 0 (19,257) 0
---------- ---------- --------
Units outstanding end of period.......... 215,756 583,198 15,811
========== ========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (647) $ (15,083) $ (87)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
HIGH YIELD GROWTH
SUBACCOUNT
----------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 9, 1998**
JUNE 30, THROUGH
1999 DECEMBER 31, 1998
------------ ------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)............ $ 108,749 $ 444
Net realized gain (loss) on
investments........................... (2,849) 0
Net increase (decrease) in unrealized
appreciation of investments........... (142,909) 359
---------- --------
Net increase (decrease) in net assets
resulting from operations............... (37,009) 803
---------- --------
From unit transactions:
Net proceeds from the issuance of
units................................. 6,783,552 246,240
Net asset value of units redeemed or
used to meet contract obligations..... (286,663) 0
---------- --------
Net increase from unit transactions...... 6,496,889 246,240
---------- --------
Net increase in net assets............... 6,459,880 247,043
Net assets beginning of period........... 247,043 0
---------- --------
Net assets end of period*................ $6,706,923 $247,043
========== ========
Units outstanding beginning of period.... 24,732 0
Units issued during the period........... 666,119 24,732
Units redeemed during the period......... (28,185) 0
---------- --------
Units outstanding end of period.......... 662,666 24,732
========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ 109,193 $ 444
** Commencement of operations
</TABLE>
See notes to financial statements.
74
<PAGE> 91
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
GROWTH GROWTH AND INCOME
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 1, 1998** MONTHS ENDED DECEMBER 3, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------ ------------ ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........... $ (278,979) $ (592) $ (71,045) $ (75)
Net realized gain on investments....... 651,220 144 231,934 1
Net increase in unrealized appreciation
of investments....................... 3,165,130 35,655 2,277,645 6,178
------------ ---------- ----------- --------
Net increase in net assets resulting
from operations........................ 3,537,371 35,207 2,438,534 6,104
------------ ---------- ----------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 109,733,919 1,594,029 28,077,303 265,896
Net asset value of units redeemed or
used to meet contract obligations.... (3,648,762) 0 (684,974) 0
------------ ---------- ----------- --------
Net increase from unit transactions..... 106,085,157 1,594,029 27,392,329 265,896
------------ ---------- ----------- --------
Net increase in net assets.............. 109,622,528 1,629,236 29,830,863 272,000
Net assets beginning of period.......... 1,629,236 0 272,000 0
------------ ---------- ----------- --------
Net assets end of period*............... $111,251,764 $1,629,236 $30,102,863 $272,000
============ ========== =========== ========
Units outstanding beginning of period... 154,728 0 26,693 0
Units issued during the period.......... 9,754,505 154,728 2,552,263 26,693
Units redeemed during the period........ (327,777) 0 (60,308) 0
------------ ---------- ----------- --------
Units outstanding end of period......... 9,581,456 154,728 2,518,648 26,693
============ ========== =========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (279,571) $ (592) $ (71,120) $ (75)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
SMALL COMPANY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 3, 1998** MONTHS ENDED DECEMBER 8, 1998**
JUNE 30, THROUGH JUNE 30, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------ ------------ ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........... $ (12,011) $ (67) $ (3,883) $ (47)
Net realized gain on investments....... 22,031 4 48,207 1
Net increase in unrealized appreciation
of investments....................... 630,661 8,945 449,002 1,724
---------- -------- ----------- --------
Net increase in net assets resulting
from operations........................ 640,681 8,882 493,326 1,678
---------- -------- ----------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 4,578,270 185,484 12,832,773 197,340
Net asset value of units redeemed or
used to meet contract obligations.... (184,869) 0 (191,499) 0
---------- -------- ----------- --------
Net increase from unit transactions..... 4,393,401 185,484 12,641,274 197,340
---------- -------- ----------- --------
Net increase in net assets.............. 5,034,082 194,366 13,134,600 199,018
Net assets beginning of period.......... 194,366 0 199,018 0
---------- -------- ----------- --------
Net assets end of period*............... $5,228,448 $194,366 $13,333,618 $199,018
========== ======== =========== ========
Units outstanding beginning of period... 17,887 0 19,409 0
Units issued during the period.......... 421,608 17,887 1,174,572 19,409
Units redeemed during the period........ (16,718) 0 (17,622) 0
---------- -------- ----------- --------
Units outstanding end of period......... 422,777 17,887 1,176,359 19,409
========== ======== =========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (12,078) $ (67) $ (3,930) $ (47)
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
CAPITAL APPRECIATION
SUBACCOUNT
----------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED DECEMBER 8, 1998**
JUNE 30, THROUGH
1999 DECEMBER 31, 1998
------------ ------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income (loss)........... $ (26,503) $ (49)
Net realized gain on investments....... 82,291 4
Net increase in unrealized appreciation
of investments....................... 572,998 8,949
----------- --------
Net increase in net assets resulting
from operations........................ 628,786 8,904
----------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 11,277,504 215,502
Net asset value of units redeemed or
used to meet contract obligations.... (334,034) 0
----------- --------
Net increase from unit transactions..... 10,943,470 215,502
----------- --------
Net increase in net assets.............. 11,572,256 224,406
Net assets beginning of period.......... 224,406 0
----------- --------
Net assets end of period*............... $11,796,662 $224,406
=========== ========
Units outstanding beginning of period... 20,360 0
Units issued during the period.......... 985,003 20,360
Units redeemed during the period........ (28,764) 0
----------- --------
Units outstanding end of period......... 976,599 20,360
=========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (26,552) $ (49)
** Commencement of operations
</TABLE>
See notes to financial statements.
75
<PAGE> 92
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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.
76
<PAGE> 93
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc and the Enterprise Accumulation Trust
at cost, at June 30, 1999 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............... 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 acquired:
Shares............... 429,301 655,418 680,594 37,942,409 397,446 543,213 1,796,142
Amount............... $4,796,560 $ 8,837,729 $ 7,550,118 $ 37,942,409 $15,169,437 $15,786,318 $75,694,369
Shares received for
reinvestment of
dividends:
Shares............... 14,606 27,962 16,013 246,837 0 0 0
Amount............... $ 157,156 $ 354,278 $ 173,260 $ 246,837 $ 0 $ 0 $ 0
Shares redeemed:
Shares............... (53,612) (78,950) (93,094) (16,269,209) (32,180) (40,933) (140,081)
Amount............... $ (607,234) $(1,111,778) $(1,039,797) $(16,269,209) $(1,173,694) $(1,106,523) $(5,620,916)
---------- ----------- ----------- ------------ ----------- ----------- -----------
Net change:
Shares............... 390,295 604,430 603,513 21,920,037 365,266 502,280 1,656,061
Amount............... $4,346,482 $ 8,080,229 $ 6,683,581 $ 21,920,037 $13,995,743 $14,679,795 $70,073,453
---------- ----------- ----------- ------------ ----------- ----------- -----------
Shares end of period:
Shares............... 411,953 631,829 652,460 23,349,064 382,740 516,255 1,709,098
Amount............... $4,591,384 $ 8,467,825 $ 7,229,558 $ 23,349,064 $14,626,235 $15,042,237 $72,195,557
========== =========== =========== ============ =========== =========== ===========
</TABLE>
77
<PAGE> 94
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in the Enterprise Accumulation Trust at cost, at June 30, 1999
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............. 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 acquired:
Shares............. 972,804 1,324,163 20,602,705 5,334,236 897,946 2,433,241 2,068,371
Amount............. $6,568,527 $7,102,386 $116,500,923 $29,557,837 $4,934,066 $13,252,620 $12,015,526
Shares received for
reinvestment of
dividends:
Shares............. 0 23,982 0 0 0 4,398 0
Amount............. $ 0 $ 127,562 $ 0 $ 0 $ 0 $ 24,851 $ 0
Shares redeemed:
Shares............. (89,932) (116,640) (1,894,462) (395,282) (98,329) (116,806) (187,379)
Amount............. $ (603,353) $ (627,159) $(10,043,525) $(2,004,619) $ (530,645) $ (591,873) $(1,016,268)
---------- ---------- ------------ ----------- ---------- ----------- -----------
Net change:
Shares............. 882,872 1,231,505 18,708,243 4,938,954 799,617 2,320,833 1,880,992
Amount............. $5,965,174 $6,602,789 $106,457,398 $27,553,218 $4,403,421 $12,685,598 $10,999,258
---------- ---------- ------------ ----------- ---------- ----------- -----------
Shares end of period:
Shares............. 907,631 1,277,509 19,017,396 4,992,183 835,215 2,359,933 1,921,280
Amount............. $6,126,844 $6,849,473 $108,050,979 $27,819,040 $4,588,842 $12,882,892 $11,214,715
========== ========== ============ =========== ========== =========== ===========
</TABLE>
78
<PAGE> 95
MONY
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<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)...................... $397,243 $ 87,717 $10,439,367 $20,392,228 $ 95,768
======== ========= =========== =========== =========
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... $471,061 $ 83,595 $10,200,283 $19,309,872 $ 112,349
Amount due from MONY...... 0 0 810 4,082 0
Amount due from MONY
Series Fund, Inc. ...... 0 0 5,053 3,386 0
-------- --------- ----------- ----------- ---------
Total assets..... 471,061 83,595 10,206,146 19,317,340 112,349
-------- --------- ----------- ----------- ---------
LIABILITIES
Amount due to MONY........ 0 0 5,053 3,386 0
Amount due to MONY Series
Fund, Inc............... 0 0 810 4,082 0
-------- --------- ----------- ----------- ---------
Total
liabilities.... 0 0 5,863 7,468 0
-------- --------- ----------- ----------- ---------
Net assets................ $471,061 $ 83,595 $10,200,283 $19,309,872 $ 112,349
======== ========= =========== =========== =========
Net assets consist of:
Contractholders' net
payments.............. $ 89,856 $(304,449) $ 7,825,090 $14,817,502 $(172,645)
Undistributed net
investment income..... 122,996 186,780 2,288,379 4,345,436 143,100
Accumulated net realized
gain on investments... 184,391 205,386 325,898 1,229,290 125,313
Unrealized appreciation
(depreciation) of
investments........... 73,818 (4,122) (239,084) (1,082,356) 16,581
-------- --------- ----------- ----------- ---------
Net assets................ $471,061 $ 83,595 $10,200,283 $19,309,872 $ 112,349
======== ========= =========== =========== =========
Number of units
outstanding*............ 8,153 1,805 537,260 827,319 2,750
-------- --------- ----------- ----------- ---------
Net asset value per unit
outstanding*............ $ 57.78 $ 46.31 $ 18.99 $ 23.34 $ 40.85
======== ========= =========== =========== =========
<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)...................... $38,165,194 $7,138,812 $618,719
=========== ========== ========
Investments in MONY Series
Fund, Inc., at net asset
value (Note 2).......... $38,165,194 $7,042,411 $618,719
Amount due from MONY...... 9,471 1,002 0
Amount due from MONY
Series Fund, Inc. ...... 150 8 217,979
----------- ---------- --------
Total assets..... 38,174,815 7,043,421 836,698
----------- ---------- --------
LIABILITIES
Amount due to MONY........ 150 8 217,979
Amount due to MONY Series
Fund, Inc............... 9,471 1,002 0
----------- ---------- --------
Total
liabilities.... 9,621 1,010 217,979
----------- ---------- --------
Net assets................ $38,165,194 $7,042,411 $618,719
=========== ========== ========
Net assets consist of:
Contractholders' net
payments.............. $33,343,520 $6,653,780 $537,019
Undistributed net
investment income..... 4,821,674 310,206 81,700
Accumulated net realized
gain on investments... 0 174,826 0
Unrealized appreciation
(depreciation) of
investments........... 0 (96,401) 0
----------- ---------- --------
Net assets................ $38,165,194 $7,042,411 $618,719
=========== ========== ========
Number of units
outstanding*............ 2,387,407 568,596 42,421
----------- ---------- --------
Net asset value per unit
outstanding*............ $ 15.99 $ 12.39 $ 14.59
=========== ========== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
79
<PAGE> 96
MONY
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)........... $65,380,083 $43,837,759 $282,243,394 $10,618,486 $12,245,337
=========== =========== ============ =========== ===========
Investments in Enterprise Accumulation
Trust, at net asset value (Note 2)... $75,846,676 $52,238,147 $320,435,347 $11,204,728 $11,530,045
Amount due from MONY................... 17,115 4,308 31,150 647 1,011
Amount due from Enterprise Accumulation
Trust................................ 7,934 5,215 48,448 11 367
----------- ----------- ------------ ----------- -----------
Total assets................. 75,871,725 52,247,670 320,514,945 11,205,386 11,531,423
----------- ----------- ------------ ----------- -----------
LIABILITIES
Amount due to MONY..................... 7,934 5,215 48,448 11 367
Amount due to Enterprise Accumulation
Trust................................ 17,115 4,308 31,150 647 1,011
----------- ----------- ------------ ----------- -----------
Total liabilities............ 25,049 9,523 79,598 658 1,378
----------- ----------- ------------ ----------- -----------
Net assets............................. $75,846,676 $52,238,147 $320,435,347 $11,204,728 $11,530,045
=========== =========== ============ =========== ===========
Net assets consist of:
Contractholders' net payments........ $42,613,550 $28,028,678 $138,792,840 $ 9,243,858 $10,384,880
Undistributed net investment
income............................ 4,575,405 6,803,183 40,596,956 524,206 1,777,171
Accumulated net realized gain on
investments....................... 18,191,128 9,005,897 102,853,598 850,422 83,286
Unrealized appreciation
(depreciation) of investments..... 10,466,593 8,400,389 38,191,953 586,242 (715,292)
----------- ----------- ------------ ----------- -----------
Net assets............................. $75,846,676 $52,238,147 $320,435,347 $11,204,728 $11,530,045
=========== =========== ============ =========== ===========
Number of units outstanding*........... 1,571,511 1,130,823 5,336,423 754,695 769,913
----------- ----------- ------------ ----------- -----------
Net asset value per unit
outstanding*......................... $ 48.26 $ 46.19 $ 60.05 $ 14.85 $ 14.98
=========== =========== ============ =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
80
<PAGE> 97
MONY
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUEMASTER
----------------------------------------------------
OCC ACCUMULATION TRUST
----------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............................. $395,836 $523,636 $122,898 $6,813,835
======== ======== ======== ==========
Investments in OCC Accumulation Trust, at net asset value
(Note 2)............................................... $386,362 $663,357 $130,629 $8,635,742
Amount due from OCC Accumulation Trust................... 188,313 0 0 0
Dividends receivable..................................... 981 0 0 0
-------- -------- -------- ----------
Total assets................................... 575,656 663,357 130,629 8,635,742
-------- -------- -------- ----------
LIABILITIES
Amount due to MONY....................................... 188,313 0 0 0
-------- -------- -------- ----------
Total liabilities.............................. 188,313 0 0 0
-------- -------- -------- ----------
Net assets............................................... $387,343 $663,357 $130,629 $8,635,742
======== ======== ======== ==========
Net assets consist of:
Contractholders' net payments.......................... $232,818 $336,962 $(29,832) $ (64,479)
Undistributed net investment income.................... 165,536 58,078 32,489 1,075,976
Accumulated net realized gain (loss) on investments.... (1,537) 128,596 120,241 5,802,338
Unrealized appreciation (depreciation) of
investments......................................... (9,474) 139,721 7,731 1,821,907
-------- -------- -------- ----------
Net assets............................................... $387,343 $663,357 $130,629 $8,635,742
======== ======== ======== ==========
Number of units outstanding*............................. 21,781 13,451 4,081 149,995
-------- -------- -------- ----------
Net asset value per unit outstanding*.................... $ 17.78 $ 49.32 $ 32.01 $ 57.57
======== ======== ======== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
81
<PAGE> 98
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<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.......... $ 35,897 $ 13,766 $ 484,498 $ 1,157,704 $13,116 $ 944,476
Mortality and expense
risk charges (Note
3)..................... (2,551) (1,254) (63,908) (126,076) (660) (255,895)
-------- --------- ----------- ----------- ------- ------------
Net investment income.... 33,346 12,512 420,590 1,031,628 12,456 688,581
-------- --------- ----------- ----------- ------- ------------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from
sales.............. 115,166 277,755 1,368,595 3,209,437 788 41,355,501
Cost of shares
sold............... (46,424) (173,120) (1,286,907) (2,850,348) (609) (41,355,501)
-------- --------- ----------- ----------- ------- ------------
Net realized gain on
investments............ 68,742 104,635 81,688 359,089 179 0
Net increase (decrease)
in unrealized
appreciation of
investments............ (39,576) (97,428) (627,304) (2,762,444) 1,331 0
-------- --------- ----------- ----------- ------- ------------
Net realized and
unrealized gain (loss)
on investments......... 29,166 7,207 (545,616) (2,403,355) 1,510 0
-------- --------- ----------- ----------- ------- ------------
Net increase (decrease)
in net assets resulting
from operations........ $ 62,512 $ 19,719 $ (125,026) $(1,371,727) $13,966 $ 688,581
======== ========= =========== =========== ======= ============
<CAPTION>
MONYMASTER VALUEMASTER
----------- -----------
MONY SERIES FUND, INC.
-------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
----------- -----------
<S> <C> <C>
Dividend income.......... $ 209,595 $ 16,578
Mortality and expense
risk charges (Note
3)..................... (44,128) (4,508)
----------- ---------
Net investment income.... 165,467 12,070
----------- ---------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from
sales.............. 1,163,701 254,943
Cost of shares
sold............... (1,097,478) (254,943)
----------- ---------
Net realized gain on
investments............ 66,223 0
Net increase (decrease)
in unrealized
appreciation of
investments............ (298,932) 0
----------- ---------
Net realized and
unrealized gain (loss)
on investments......... (232,709) 0
----------- ---------
Net increase (decrease)
in net assets resulting
from operations........ $ (67,242) $ 12,070
=========== =========
</TABLE>
See notes to financial statements.
82
<PAGE> 99
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Dividend income.......................... $ 0 $ 0 $ 0 $ 0 $ 470,723
Mortality and expense risk charges (Note
3)..................................... (440,074) (293,917) (1,916,630) (67,002) (69,654)
----------- ----------- ------------ --------- -----------
Net investment income.................... (440,074) (293,917) (1,916,630) (67,002) 401,069
----------- ----------- ------------ --------- -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales................. 6,139,390 3,756,964 29,899,976 881,784 1,211,228
Cost of shares sold................. (4,167,509) (2,495,023) (20,460,874) (735,617) (1,238,051)
----------- ----------- ------------ --------- -----------
Net realized gain on investments......... 1,971,881 1,261,941 9,439,102 146,167 (26,823)
Net increase (decrease) in unrealized
appreciation of investments............ 4,022,837 5,022,067 13,029,141 24,206 (232,983)
----------- ----------- ------------ --------- -----------
Net realized and unrealized gain (loss)
on investments......................... 5,994,718 6,284,008 22,468,243 170,373 (259,806)
----------- ----------- ------------ --------- -----------
Net increase in net assets resulting from
operations............................. $ 5,554,644 $ 5,990,091 $ 20,551,613 $ 103,371 $ 141,263
=========== =========== ============ ========= ===========
</TABLE>
See notes to financial statements.
83
<PAGE> 100
MONY
VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUEMASTER
--------------------------------------------------------
OCC ACCUMULATION TRUST
--------------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Dividend income................................... $ 14,739 $ 31,932 $ 877 $ 437,887
Mortality and expense risk charges (Note 3)....... (3,935) (3,514) (778) (56,334)
--------- -------- -------- -----------
Net investment income............................. 10,804 28,418 99 381,553
--------- -------- -------- -----------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales.......................... 284,828 30,465 34,062 2,864,570
Cost of shares sold.......................... (283,065) (14,755) (27,474) (1,467,767)
--------- -------- -------- -----------
Net realized gain on investments.................. 1,763 15,710 6,588 1,396,803
Net increase (decrease) in unrealized appreciation
of investments.................................. (29,185) 19,501 (6,588) (1,267,564)
--------- -------- -------- -----------
Net realized and unrealized gain (loss) on
investments..................................... (27,422) 35,211 0 129,239
--------- -------- -------- -----------
Net increase (decrease) in net assets resulting
from operations................................. $ (16,618) $ 63,629 $ 99 $ 510,792
========= ======== ======== ===========
</TABLE>
See notes to financial statements.
84
<PAGE> 101
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------
EQUITY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income......................... $ 33,346 $ 40,592 $ 12,512 $ 47,069
Net realized gain on investments.............. 68,742 30,177 104,635 29,180
Net increase (decrease) in unrealized
appreciation of investments................. (39,576) (7,398) (97,428) (39,218)
--------- -------- --------- --------
Net increase (decrease) in net assets resulting
from operations............................... 62,512 63,371 19,719 37,031
--------- -------- --------- --------
From unit transactions:
Net proceeds from the issuance of units....... 206,414 0 1,834 0
Net asset value of units redeemed or used to
meet contract obligations................... (112,615) (40,219) (276,501) (46,377)
--------- -------- --------- --------
Net increase (decrease) from unit
transactions.................................. 93,799 (40,219) (274,667) (46,377)
--------- -------- --------- --------
Net increase (decrease) in net assets........... 156,311 23,152 (254,948) (9,346)
Net assets beginning of period.................. 314,750 291,598 338,543 347,889
--------- -------- --------- --------
Net assets end of period*....................... $ 471,061 $314,750 $ 83,595 $338,543
========= ======== ========= ========
Units outstanding beginning of period........... 6,343 7,284 8,207 9,384
Units issued during the period.................. 3,758 0 44 0
Units redeemed during the period................ (1,948) (941) (6,446) (1,177)
--------- -------- --------- --------
Units outstanding end of period................. 8,153 6,343 1,805 8,207
========= ======== ========= ========
- ---------------
* Includes undistributed net investment income
of: $ 122,996 $ 89,650 $ 186,780 $174,268
<CAPTION>
MONYMASTER
---------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income......................... $ 420,590 $ 320,184 $ 1,031,628 $ 630,153
Net realized gain on investments.............. 81,688 133,811 359,089 507,345
Net increase (decrease) in unrealized
appreciation of investments................. (627,304) 74,736 (2,762,444) 203,832
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations............................... (125,026) 528,731 (1,371,727) 1,341,330
----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units....... 781,240 5,241,941 2,465,270 8,276,703
Net asset value of units redeemed or used to
meet contract obligations................... (1,247,202) (2,884,226) (2,969,655) (2,329,561)
----------- ----------- ----------- -----------
Net increase (decrease) from unit
transactions.................................. (465,962) 2,357,715 (504,385) 5,947,142
----------- ----------- ----------- -----------
Net increase (decrease) in net assets........... (590,988) 2,886,446 (1,876,112) 7,288,472
Net assets beginning of period.................. 10,791,271 7,904,825 21,185,984 13,897,512
----------- ----------- ----------- -----------
Net assets end of period*....................... $10,200,283 $10,791,271 $19,309,872 $21,185,984
=========== =========== =========== ===========
Units outstanding beginning of period........... 561,493 436,486 847,628 604,629
Units issued during the period.................. 40,893 277,572 101,375 341,631
Units redeemed during the period................ (65,126) (152,565) (121,684) (98,632)
----------- ----------- ----------- -----------
Units outstanding end of period................. 537,260 561,493 827,319 847,628
=========== =========== =========== ===========
- ---------------
* Includes undistributed net investment income
of: $ 2,288,379 $ 1,867,789 $ 4,345,436 $ 3,313,808
</TABLE>
See notes to financial statements.
85
<PAGE> 102
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYMASTER
----------------------------------------------------------
MONY SERIES FUND, INC.
----------------------------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------------- ----------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income......................... $ 12,456 $ 24,140 $ 688,581 $ 1,275,552
Net realized gain on investments.............. 179 13,977 0 0
Net increase (decrease) in unrealized
appreciation of investments................. 1,331 (14,958) 0 0
-------- -------- ----------- -------------
Net increase (decrease) in net assets resulting
from operations............................... 13,966 23,159 688,581 1,275,552
-------- -------- ----------- -------------
From unit transactions:
Net proceeds from the issuance of units....... 0 0 27,553,479 142,540,251
Net asset value of units redeemed or used to
meet contract obligations................... (128) (62,443) (39,035,884) (118,190,820)
-------- -------- ----------- -------------
Net increase (decrease) from unit
transactions.................................. (128) (62,443) (11,482,405) 24,349,431
-------- -------- ----------- -------------
Net increase (decrease) in net assets........... 13,838 (39,284) (10,793,824) 25,624,983
Net assets beginning of period.................. 98,511 137,795 48,959,018 23,334,035
-------- -------- ----------- -------------
Net assets end of period*....................... $112,349 $ 98,511 $38,165,194 $ 48,959,018
======== ======== =========== =============
Units outstanding beginning of period........... 2,754 4,707 3,114,064 1,543,043
Units issued during the period.................. 0 0 1,737,005 9,230,746
Units redeemed during the period................ (4) (1,953) (2,463,662) (7,659,725)
-------- -------- ----------- -------------
Units outstanding end of period................. 2,750 2,754 2,387,407 3,114,064
======== ======== =========== =============
- ---------------
* Includes undistributed net investment income
of: $143,100 $130,644 $ 4,821,674 $ 4,133,093
<CAPTION>
MONYMASTER VALUEMASTER
--------------------------- ---------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------
GOVERNMENT SECURITIES MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income......................... $ 165,467 $ 93,950 $ 12,070 $ 17,105
Net realized gain on investments.............. 66,223 82,016 0 0
Net increase (decrease) in unrealized
appreciation of investments................. (298,932) 72,464 0 0
---------- ---------- -------- -----------
Net increase (decrease) in net assets resulting
from operations............................... (67,242) 248,430 12,070 17,105
---------- ---------- -------- -----------
From unit transactions:
Net proceeds from the issuance of units....... 889,007 4,518,283 340,742 1,808,234
Net asset value of units redeemed or used to
meet contract obligations................... (1,049,667) (1,075,338) (249,899) (1,773,805)
---------- ---------- -------- -----------
Net increase (decrease) from unit
transactions.................................. (160,660) 3,442,945 90,843 34,429
---------- ---------- -------- -----------
Net increase (decrease) in net assets........... (227,902) 3,691,375 102,913 51,534
Net assets beginning of period.................. 7,270,313 3,578,938 515,806 464,272
---------- ---------- -------- -----------
Net assets end of period*....................... $7,042,411 $7,270,313 $618,719 $ 515,806
========== ========== ======== ===========
Units outstanding beginning of period........... 581,295 302,006 35,959 33,429
Units issued during the period.................. 71,386 361,047 23,613 126,735
Units redeemed during the period................ (84,085) (81,758) (17,151) (124,205)
---------- ---------- -------- -----------
Units outstanding end of period................. 568,596 581,295 42,421 35,959
========== ========== ======== ===========
- ---------------
* Includes undistributed net investment income
of: $ 310,206 $ 144,739 $ 81,700 $ 69,630
</TABLE>
See notes to financial statements.
86
<PAGE> 103
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYMASTER
---------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------
EQUITY SMALL COMPANY MANAGED
SUBACCOUNT VALUE SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (440,074) $ 2,200,379 $ (293,917) $ 2,192,556 $ (1,916,630) $ 19,750,547
Net realized gain (loss) on
investments.................. 1,971,881 7,916,403 1,261,941 4,722,353 9,439,102 44,737,325
Net increase (decrease) in
unrealized appreciation of
investments.................. 4,022,837 (5,669,218) 5,022,067 (4,325,400) 13,029,141 (48,532,620)
----------- ----------- ----------- ------------ ------------ ------------
Net increase in net assets
resulting from operations...... 5,554,644 4,447,564 5,990,091 2,589,509 20,551,613 15,955,252
----------- ----------- ----------- ------------ ------------ ------------
From unit transactions:
Net proceeds from the issuance
of units..................... 8,118,969 22,879,320 5,175,989 14,502,302 24,342,372 83,188,883
Net asset value of units
redeemed or used to meet
contract obligations......... (5,432,416) (18,619,183) (3,298,973) (12,018,701) (26,330,001) (94,338,742)
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) from unit
transactions................... 2,686,553 4,260,137 1,877,016 2,483,601 (1,987,629) (11,149,859)
----------- ----------- ----------- ------------ ------------ ------------
Net increase in net assets....... 8,241,197 8,707,701 7,867,107 5,073,110 18,563,984 4,805,393
Net assets beginning of period... 67,605,479 58,897,778 44,371,040 39,297,930 301,871,363 297,065,970
----------- ----------- ----------- ------------ ------------ ------------
Net assets end of period*........ $75,846,676 $67,605,479 $52,238,147 $ 44,371,040 $320,435,347 $301,871,363
=========== =========== =========== ============ ============ ============
Units outstanding beginning of
period......................... 1,510,836 1,428,789 1,087,406 1,042,727 5,369,272 5,633,476
Units issued during the period... 179,041 526,017 120,997 373,071 425,261 1,521,008
Units redeemed during the
period......................... (118,366) (443,970) (77,580) (328,392) (458,110) (1,785,212)
----------- ----------- ----------- ------------ ------------ ------------
Units outstanding end of
period......................... 1,571,511 1,510,836 1,130,823 1,087,406 5,336,423 5,369,272
=========== =========== =========== ============ ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 4,575,405 $ 5,015,479 $ 6,803,183 $ 7,097,100 $ 40,596,956 $ 42,513,586
<CAPTION>
MONYMASTER
---------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------
INTERNATIONAL GROWTH HIGH YIELD BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ (67,002) $ 381,003 $ 401,069 $ 799,222
Net realized gain (loss) on
investments.................. 146,167 277,852 (26,823) 47,477
Net increase (decrease) in
unrealized appreciation of
investments.................. 24,206 405,104 (232,983) (710,908)
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations...... 103,371 1,063,959 141,263 135,791
----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units..................... 1,376,996 2,826,722 1,642,620 5,348,741
Net asset value of units
redeemed or used to meet
contract obligations......... (749,215) (2,036,923) (1,077,521) (1,925,911)
----------- ----------- ----------- -----------
Net increase (decrease) from unit
transactions................... 627,781 789,799 565,099 3,422,830
----------- ----------- ----------- -----------
Net increase in net assets....... 731,152 1,853,758 706,362 3,558,621
Net assets beginning of period... 10,473,576 8,619,818 10,823,683 7,265,062
----------- ----------- ----------- -----------
Net assets end of period*........ $11,204,728 $10,473,576 $11,530,045 $10,823,683
=========== =========== =========== ===========
Units outstanding beginning of
period......................... 711,551 664,152 732,343 502,892
Units issued during the period... 93,953 200,326 109,687 363,458
Units redeemed during the
period......................... (50,809) (152,927) (72,117) (134,007)
----------- ----------- ----------- -----------
Units outstanding end of
period......................... 754,695 711,551 769,913 732,343
=========== =========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 524,206 $ 591,208 $ 1,777,171 $ 1,376,102
</TABLE>
See notes to financial statements.
87
<PAGE> 104
MONY
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VALUEMASTER
---------------------------------------------------------------------------------------
OCC ACCUMULATION TRUST
---------------------------------------------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 10,804 $ 31,948 $ 28,418 $ 17,635 $ 99 $ 8,730
Net realized gain on
investments.................... 1,763 2,987 15,710 65,238 6,588 51,928
Net increase (decrease) in
unrealized appreciation of
investments.................... (29,185) 4,164 19,501 (46,441) (6,588) (68,424)
--------- -------- -------- --------- -------- ---------
Net increase (decrease) in net
assets resulting from
operations....................... (16,618) 39,099 63,629 36,432 99 (7,766)
--------- -------- -------- --------- -------- ---------
From unit transactions:
Net proceeds from the issuance of
units.......................... 0 116,160 293,359 32,150 15,190 33,004
Net asset value of units redeemed
or used to meet contract
obligations.................... (275,893) (65,871) (26,951) (127,289) (33,284) (137,264)
--------- -------- -------- --------- -------- ---------
Net increase (decrease) from unit
transactions..................... (275,893) 50,289 266,408 (95,139) (18,094) (104,260)
--------- -------- -------- --------- -------- ---------
Net increase (decrease) in net
assets........................... (292,511) 89,388 330,037 (58,707) (17,995) (112,026)
Net assets beginning of period..... 679,854 590,466 333,320 392,027 148,624 260,650
--------- -------- -------- --------- -------- ---------
Net assets end of period*.......... $ 387,343 $679,854 $663,357 $ 333,320 $130,629 $ 148,624
========= ======== ======== ========= ======== =========
Units outstanding beginning of
period........................... 37,207 34,521 7,358 9,563 4,781 7,532
Units issued during the period..... 0 6,460 6,690 729 471 991
Units redeemed during the period... (15,426) (3,774) (597) (2,934) (1,171) (3,742)
--------- -------- -------- --------- -------- ---------
Units outstanding end of period.... 21,781 37,207 13,451 7,358 4,081 4,781
========= ======== ======== ========= ======== =========
- ---------------
* Includes undistributed net
investment income of: $ 165,536 $154,732 $ 58,078 $ 29,660 $ 32,489 $ 32,390
<CAPTION>
VALUEMASTER
---------------------------
OCC ACCUMULATION TRUST
---------------------------
MANAGED
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income............ $ 381,553 $ 316,824
Net realized gain on
investments.................... 1,396,803 2,059,748
Net increase (decrease) in
unrealized appreciation of
investments.................... (1,267,564) (1,784,329)
----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 510,792 592,243
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 125,062 1,794,905
Net asset value of units redeemed
or used to meet contract
obligations.................... (2,429,343) (4,139,893)
----------- -----------
Net increase (decrease) from unit
transactions..................... (2,304,281) (2,344,988)
----------- -----------
Net increase (decrease) in net
assets........................... (1,793,489) (1,752,745)
Net assets beginning of period..... 10,429,231 12,181,976
----------- -----------
Net assets end of period*.......... $ 8,635,742 $10,429,231
=========== ===========
Units outstanding beginning of
period........................... 193,049 238,580
Units issued during the period..... 2,187 35,581
Units redeemed during the period... (45,241) (81,112)
----------- -----------
Units outstanding end of period.... 149,995 193,049
=========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 1,075,976 $ 694,423
</TABLE>
See notes to financial statements.
88
<PAGE> 105
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS -- (UNAUDITED)
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.
("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 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 Portfolios. 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 assets values 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 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 1999 was $155,798.
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.
89
<PAGE> 106
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS
Investments in MONY Series Fund, Inc at cost, at June 30, 1999 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
period:
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
-------- --------- ----------- ----------- ------- ------------ -----------
Shares acquired:
Shares................. 4,869 69 75,395 188,787 0 29,873,096 86,693
Amount................. $206,414 $ 1,834 $ 838,725 $ 2,578,976 $ 0 $ 29,873,096 $ 958,913
Shares received for
reinvestment of
dividends:
Shares................. 881 565 45,028 91,374 657 688,581 19,371
Amount................. $ 35,897 $ 13,766 $ 484,498 $ 1,157,704 $13,116 $ 688,581 $ 209,595
Shares redeemed:
Shares................. (2,584) (10,264) (122,242) (234,199) (38) (41,355,501) (104,868)
Amount................. $(46,424) $(173,120) $(1,286,907) $(2,850,348) $ (609) $(41,355,501) $(1,097,478)
-------- --------- ----------- ----------- ------- ------------ -----------
Net change:
Shares................. 3,166 (9,630) (1,819) 45,962 619 (10,793,824) 1,196
Amount................. $195,887 $(157,520) $ 36,316 $ 886,332 $12,507 $(10,793,824) $ 71,030
-------- --------- ----------- ----------- ------- ------------ -----------
Shares end of period:
Shares................. 11,406 3,416 950,632 1,541,091 5,567 38,165,194 652,074
Amount................. $397,243 $ 87,717 $10,439,367 $20,392,228 $95,768 $ 38,165,194 $ 7,138,812
======== ========= =========== =========== ======= ============ ===========
<CAPTION>
VALUEMASTER
-----------
MONEY
MARKET
PORTFOLIO
-----------
<S> <C>
Shares beginning of
period:
Shares................. 515,806
Amount................. $ 515,806
---------
Shares acquired:
Shares................. 345,786
Amount................. $ 345,786
Shares received for
reinvestment of
dividends:
Shares................. 12,070
Amount................. $ 12,070
Shares redeemed:
Shares................. (254,943)
Amount................. $(254,943)
---------
Net change:
Shares................. 102,913
Amount................. $ 102,913
---------
Shares end of period:
Shares................. 618,719
Amount................. $ 618,719
=========
</TABLE>
90
<PAGE> 107
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at June 30, 1999
consist of the following:
<TABLE>
<CAPTION>
MONYMASTER
------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares................................... 1,836,107 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
----------- ----------- ------------ ----------- -----------
Shares acquired:
Shares................................... 223,936 185,734 626,850 214,539 406,173
Amount................................... $ 8,385,869 $ 5,340,064 $ 25,995,717 $ 1,442,563 $ 2,177,396
Shares received for reinvestment of
dividends:
Shares................................... 0 0 0 0 0
Amount................................... $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares................................... (161,504) (131,033) (716,630) (130,364) (225,558)
Amount................................... $(4,167,509) $(2,495,023) $(20,460,874) $ (735,617) $(1,238,051)
----------- ----------- ------------ ----------- -----------
Net change:
Shares................................... 62,432 54,701 (89,780) 84,175 180,615
Amount................................... $ 4,218,360 $ 2,845,041 $ 5,534,843 $ 706,946 $ 939,345
----------- ----------- ------------ ----------- -----------
Shares end of period:
Shares................................... 1,898,539 1,676,450 7,352,808 1,638,118 2,196,198
Amount................................... $65,380,083 $43,837,759 $282,243,394 $10,618,486 $12,245,337
=========== =========== ============ =========== ===========
</TABLE>
91
<PAGE> 108
MONY
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in OCC Accumulation Trust at cost, at June 30, 1999 consist of
the following:
<TABLE>
<CAPTION>
VALUEMASTER
---------------------------------------------------
US GOVERNMENT
INCOME EQUITY SMALL CAP MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- --------- --------- -----------
<S> <C> <C> <C> <C>
Shares beginning of period:
Shares........................................ 63,775 8,612 6,433 238,437
Amount........................................ $ 660,143 $213,100 $134,305 $ 7,339,760
--------- -------- -------- -----------
Shares acquired:
Shares........................................ 480 7,819 636 11,861
Amount........................................ $ 5,000 $293,359 $ 15,190 $ 503,955
Shares received for reinvestment of dividends:
Shares........................................ 1,320 897 42 10,788
Amount........................................ $ 13,758 $ 31,932 $ 877 $ 437,887
Shares redeemed:
Shares........................................ (27,697) (795) (1,614) (67,329)
Amount........................................ $(283,065) $(14,755) $(27,474) $(1,467,767)
--------- -------- -------- -----------
Net change:
Shares........................................ (25,897) 7,921 (936) (44,680)
Amount........................................ $(264,307) $310,536 $(11,407) $ (525,925)
--------- -------- -------- -----------
Shares end of period:
Shares........................................ 37,878 16,533 5,497 193,757
Amount........................................ $ 395,836 $523,636 $122,898 $ 6,813,835
========= ======== ======== ===========
</TABLE>
92
<PAGE> 109
MONY SERIES FUND, INC.
EQUITY GROWTH FUND
When the financial crisis hit world markets last year, investors responded
by moving into the biggest and best companies. The expectation was that in a
hostile and uncertain world the safest place to be was in the most financially
secure, most broadly diversified and highest growth stocks. As money poured in,
these stocks rose at the expense of the rest of the market; and the popular
averages which were dominated by the big cap growth names, outperformed
everything else.
Now with the world on the mend, and the outlook for corporate profits
improving, the market has begun to broaden out. During the second quarter this
has resulted in increased investor interest in economy sensitive stocks and in
mid cap and some smaller cap names. Many of these stocks went through their own
bear market last year, declining while the popular averages rose. This year may
see the reverse of the past several years' pattern -- the big cap dominated
averages underperform the average stock.
The Equity Growth Fund has a strong representation in sectors which should
benefit from the improving world economy. The fund continues to have a major
emphasis in technology -- hardware and software and telecom equipment and
networking stocks, as well as telecommunication companies themselves. Basic
materials -- paper and forest products, and energy -- oil service and drilling
as well as the major internationals -- are overweighted. Entertainment and
specialty retailers provide the consumer sector emphasis in the portfolio.
93
<PAGE> 110
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 96.3%
- ------------------------------------------------------------------
AIR TRANSPORTATION -- 2.3%
AMR Corp.* 400 $ 27,300
Delta Airlines Inc. 500 28,812
UAL Corp.* 400 26,000
----------
82,112
----------
AUTOMOBILES -- 1.7%
Ford Motor Co. 500 28,219
General Motors Corp. (Class E) 500 33,000
----------
61,219
----------
AUTOMOTIVE PARTS -- 0.2%
Delphi Automotive Systems Corp. 300 5,569
----------
BANKS/MAJOR -- 4.0%
BankAmerica Corp. 600 43,987
Chase Manhattan Corp. 500 43,313
Citigroup, Inc. 1,100 52,250
----------
139,550
----------
BANKS/REGIONAL -- 2.4%
BankBoston Corp. 500 25,562
Fleet Financial Group, Inc. 500 22,187
Mellon Bank Corp. 1,000 36,375
----------
84,124
----------
BEVERAGES/NON-ALCOHOLIC -- 0.4%
Coca-Cola Co. 200 12,500
----------
BIO-TECHNOLOGIES -- 2.7%
Amgen, Inc. * 700 42,613
BioGen Inc. * 800 51,450
----------
94,063
----------
CABLE TELEVISION -- 2.9%
Cablevision Systems Corp. 700 49,000
Comcast Corp. (Class A) 1,400 53,813
----------
102,813
----------
CHEMICALS -- 3.0%
Dow Chemical Co. 600 40,988
DuPont (E.I.) de Nemours & Co. 400 50,750
Monsanto Co. 300 11,831
----------
103,569
----------
COMPUTER SERVICES -- 1.0%
America Online Inc. 300 33,150
----------
COMPUTER STORAGE DEVICES -- 0.6%
EMC Corp. 400 22,000
----------
DRUGS -- 6.9%
American Home Products Corp. 600 34,500
Bristol-Meyers Squibb Co. 600 42,262
Lilly (Eli) & Co. 400 28,650
Pfizer Inc. 400 43,900
Schering-Plough Corp. 600 31,800
Smithkline Beecham, PLC, ADR 400 26,425
Warner Lambert Co. 500 34,687
----------
242,224
----------
ELECTRICAL EQUIPMENT -- 4.0%
Emerson Electric Co. 600 37,725
General Electric Co. 900 101,700
----------
139,425
----------
ELECTRONICS -- 4.1%
Applied Materials, Inc. * 600 44,325
Hewlett-Packard Co. 400 40,200
Intel Corp. 500 29,750
Texas Instruments, Inc. 200 29,000
----------
143,275
----------
ENTERTAINMENT -- 4.2%
Cumulus Media Inc. (Class A) * 500 10,937
Disney (Walt) Co. 1,000 30,812
Infinity Broadcasting Corp. (Class A) 1,300 38,675
Time Warner, Inc. 900 66,150
----------
146,574
----------
FINANCIAL SERVICES -- 2.4%
American Express Co. 300 39,038
Associates First Capital Corp. (Class A) 400 17,725
Morgan (JP) & Co. Inc. 200 28,100
----------
84,863
----------
HOSPITAL MANAGEMENT -- 0.7%
United Healthcare Corp. 400 25,050
----------
HOSPITAL SUPPLIES -- 1.4%
Johnson & Johnson 500 49,000
----------
INSURANCE -- 1.7%
American International Group, Inc. 500 58,531
----------
OFFICE & BUSINESS EQUIPMENT -- 7.7%
Compaq Computer Corp. 700 16,582
Dell Computer Corp.* 900 33,300
International Business Machines Corp. 600 77,550
Microsoft Corp.* 800 72,150
Oracle Corp.* 600 22,275
Sun Microsystems, Inc.* 700 48,212
----------
270,069
----------
OIL -- DOMESTIC -- 0.7%
Atlantic Richfield Co. 300 25,069
----------
OIL -- INTERNATIONAL -- 5.6%
BP Amoco, PLC Sponsored ADR 400 43,400
Chevron Corp. 400 38,075
Exxon Corp. 600 46,275
Mobil Corp. 300 29,700
Texaco, Inc. 600 37,500
----------
194,950
----------
OIL -- SERVICES -- 5.8%
Baker Hughes, Inc. 900 30,150
B.J. Services Co. * 1,200 35,325
Diamond Offshore Drilling, Inc. 1,000 28,375
Halliburton Holdings Co. 800 36,200
Schlumberger Ltd. 600 38,212
Weatherford International, Inc.* 900 32,963
----------
201,225
----------
PAPER & PAPER PRODUCTS -- 5.4%
Bowater Inc. 800 37,800
Champion International Corp. 800 38,300
Georgia-Pacific Group 1,000 47,375
International Paper Co. 600 30,300
Temple-Inland Inc. 500 34,125
----------
187,900
----------
RESTAURANTS -- 1.2%
McDonald's Corp. 1,000 41,312
----------
</TABLE>
See notes to financial statements.
94
<PAGE> 111
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
RETAIL -- 4.1%
Dayton-Hudson Corp. 300 $ 19,500
GAP (The) Inc. 1050 52,894
Home Depot, Inc. 500 32,219
Wal-Mart Stores Inc. 800 38,600
----------
143,213
----------
TELECOMMUNICATIONS -- 14.4%
Cisco Systems, Inc.* 800 51,600
General Instrument * 1,000 42,500
Global Crossing LTD 700 29,794
L-3 Communications Holdings Inc.* 500 24,156
Lucent Technologies Inc. 800 53,950
MCI WorldCom Inc. * 1,000 86,250
Nokia Corp. Sponsored ADR 600 54,938
Qwest Communications International Inc.* 2,000 66,125
Sprint, Corp."PCS" 500 28,563
Tellabs, Inc.* 1,000 67,563
----------
505,439
----------
TOBACCO -- 0.6%
Philip Morris Companies, Inc. 500 20,094
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.8%
Federal National Mortgage Assn 400 27,350
----------
UTILITIES -- TELEPHONE -- 3.4%
AT&T Corp. 1,400 78,137
Sprint, Corp."FON" 800 42,250
----------
120,387
----------
TOTAL COMMON STOCKS
(COST $1,984,143) $3,366,619
- ------------------------------------------------------------------
PRINCIPAL AMOUNT
----------------------
COMMERCIAL PAPER -- 2.9%
- ------------------------------------------------------------------
General Electric Capital Corp.,
4.81% due 07/07/99
(COST $99,920) $100,000 $ 99,920
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,084,063) -- 99.2% $3,466,539
OTHER ASSETS LESS LIABILITIES -- 0.8% 28,673
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $3,495,212
==================================================================
</TABLE>
The aggregate cost of securities for Federal income tax purposes at June 30,
1999 is $2,088,656.
The following amounts are based on costs for Federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $1,385,222
Aggregate gross unrealized depreciation (7,339)
----------
Net unrealized appreciation $1,377,883
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
ADR = American Depository Receipts.
Percentages are based on net assets.
95
<PAGE> 112
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
When the financial crisis hit world markets last year, investors responded
by moving into the biggest and best companies. The expectation was that in a
hostile and uncertain world the safest place to be was in the most financially
secure, most broadly diversified and highest growth stocks. As money poured in,
these stocks rose at the expense of the rest of the market; and the popular
averages which were dominated by the big cap growth names, outperformed
everything else.
Now with the world on the mend, and the outlook for corporate profits
improving, the market has begun to broaden out. During the second quarter this
has resulted in increased investor interest in economy sensitive stocks and in
mid cap and some smaller cap names. Many of these stocks went through their own
bear market last year, declining while the popular averages rose. This year may
see the reverse of the past several years pattern -- the big cap dominated
averages underperform the average stock.
The Equity Income Fund has a substantial emphasis on the economy sensitive
sectors. Cyclicals -- basic materials, capital spending related and energy
stocks -- moved up during the quarter, but still represent value. They are
relatively underowned, went through bear market size declines last year and
should experience an improving earnings outlook. They suffered the most from the
crisis and should benefit the most from the ending of the crisis and the
beginning of economic and financial recovery.
96
<PAGE> 113
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 98.5%
- ------------------------------------------------------------------
AEROSPACE/DEFENSE -- 2.3%
Northrop Grumman Corp. 3,000 $ 198,938
United Technologies Corp. 4,000 286,750
-----------
485,688
-----------
AUTOMOBILES -- 2.2%
Ford Motor Co. 4,500 253,969
General Motors Corp. 3,000 198,000
-----------
451,969
-----------
AUTOMOTIVE PARTS -- 2.2%
Dana Corp. 4,000 184,250
Delphi Automotive Systems Corp. 2,100 38,981
Eaton Corp. 2,500 230,000
-----------
453,231
-----------
BANKS/MAJOR -- 5.8%
Bank of New York, Inc. 6,000 220,125
BankAmerica Corp. 4,300 315,244
Chase Manhattan Corp. 3,700 320,512
Citigroup Inc. 7,200 342,000
-----------
1,197,881
-----------
BANKS/REGIONAL -- 3.8%
BankBoston Corp. 4,000 204,500
Fleet Financial Group, Inc. 3,600 159,750
Mellon Bank Corp. 6,000 218,250
Wells Fargo & Co. 5,000 213,750
-----------
796,250
-----------
CHEMICALS -- 3.3%
Dow Chemical Co. 2,200 279,125
DuPont (E.I.) de Nemours & Co. 3,500 239,094
Rohm & Haas Co. 4,000 171,500
-----------
689,719
-----------
CONGLOMERATES -- 5.1%
Honeywell Inc. 2,700 312,863
Minnesota Mining & Manufacturing Co. 2,200 191,262
Textron, Inc. 2,500 205,781
Tyco Int'l Ltd. 3,500 331,625
-----------
1,041,531
-----------
CONTAINERS AND PACKAGING -- 0.9%
Temple-Inland, Inc. 2,800 191,100
-----------
COSMETICS -- 1.9%
Avon Products, Inc. 7,000 388,500
-----------
DRUGS -- 7.7%
American Home Products Corp. 5,000 287,500
Baxter International, Inc. 4,000 242,500
Bristol-Myers Squibb Co. 4,400 309,925
Merck & Co., Inc. 2,500 185,000
Pharmacia & UpJohn, Inc. 4,000 227,250
SmithKline Beecham, PLC, ADR 4,000 264,250
Warner Lambert Co. 1,000 69,375
-----------
1,585,800
-----------
ELECTRICAL EQUIPMENT -- 4.2%
Emerson Electric Co. 4,000 251,500
General Electric Co. 5,500 621,500
-----------
873,000
-----------
ELECTRONICS -- 0.5%
Thomas & Betts Corp. 2,000 94,500
-----------
FINANCIAL SERVICES -- 1.4%
Morgan (JP) & Co. Inc. 2,000 281,000
-----------
FOREST PRODUCT -- 1.2%
Weyerhaeuser Co. 3,500 240,625
-----------
INSURANCE -- 4.3%
Chubb Corp. 2,500 173,750
CIGNA Corp. 4,500 400,500
Lincoln National Corp. 6,000 313,875
-----------
888,125
-----------
MACHINERY -- 2.2%
Caterpillar Inc. 4,300 258,000
Deere & Co. 5,000 198,125
-----------
456,125
-----------
METALS -- 1.7%
ALCOA Inc. 3,300 204,188
Phelps-Dodge Corp. 2,500 154,844
-----------
359,032
-----------
NATURAL GAS -- 4.1%
Consolidated Natural Gas Co. 4,500 273,375
El Paso Energy Corp. 6,800 239,275
Enron Corp. 4,000 327,000
-----------
839,650
-----------
OFFICE & BUSINESS EQUIPMENT -- 3.3%
Pitney-Bowes, Inc. 4,500 289,125
Xerox Corp. 6,500 383,906
-----------
673,031
-----------
OIL -- DOMESTIC -- 2.2%
BP Amoco, PLC Sponsored ADR 2,500 271,250
Atlantic Richfield Co. 2,200 183,838
-----------
455,088
-----------
OIL -- INTERNATIONAL -- 4.8%
Chevron Corp. 2,200 209,413
Exxon Corp. 4,000 308,500
Mobil Corp. 3,000 297,000
Texaco, Inc. 3,000 187,500
-----------
1,002,413
-----------
OIL -- SERVICES & DRILLING -- 5.9%
Baker Hughes Inc. 5,500 184,250
Diamond Offshore Drilling Inc. 5,500 156,063
Halliburton Holdings Co. 5,000 226,250
Schlumberger LTD 3,500 222,906
Williams (The) Companies, Inc. 10,000 425,625
-----------
1,215,094
-----------
PAPER & PAPER PRODUCTS -- 4.8%
Bowater, Inc. 4,000 189,000
Georgia-Pacific Group 7,000 331,625
International Paper Co. 9,500 479,750
-----------
1,000,375
-----------
PUBLISHING -- 1.4%
McGraw-Hill Companies, Inc. 5,500 296,656
-----------
</TABLE>
See notes to financial statements.
97
<PAGE> 114
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS -- 2.6%
Avalon Bay Communities, Inc. 2,500 $ 92,500
Boston Properties Inc. 3,000 107,625
Crescent Real Estate Equities Trust 5,000 118,750
Equity Office Properties Trust 4,500 115,313
Equity Residential Properties Trust 2,500 112,656
-----------
546,844
-----------
SOAPS -- 0.9%
Colgate-Palmolive Co. 2,000 197,500
-----------
TOBACCO -- 0.6%
Philip Morris Companies, Inc. 3,000 120,563
-----------
U.S. GOVERNMENT AGENCIES -- 0.8%
Federal National Mortgage Assn 2,500 170,938
-----------
UTILITIES -- ELECTRIC -- 3.8%
CMS Energy Corp. 3,000 125,625
Carolina Power & Light Co. 4,000 171,250
Duke Energy Corp. 4,000 217,500
Edison Int'l 6,000 160,500
FPL Group, Inc. 2,000 109,250
-----------
784,125
-----------
UTILITIES -- TELEPHONE -- 12.6%
AT&T Corp. 6,200 346,034
Ameritech Corp. 4,500 330,750
Bell Atlantic Corp. 4,500 294,188
Bellsouth Corp. 6,000 281,250
Frontier Corp. 4,500 265,500
GTE Corp. 4,000 303,000
SBC Communications, Inc. 5,800 336,400
Sprint Corp. "FON" 4,000 211,250
US West Inc. 4,000 235,000
-----------
2,603,372
-----------
TOTAL COMMON STOCKS
(COST $12,833,927) $20,379,725
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.2%
- ------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
4.98%, due 08/19/99 $100,000 $ 99,322
Federal National Mortgage Assn.,
4.90%, due 08/16/99 150,000 149,061
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $248,383) $ 248,383
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $13,082,310) -- 99.7% $20,628,108
OTHER ASSETS LESS LIABILITIES -- 0.3% 66,748
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $20,694,856
==================================================================
</TABLE>
The aggregate cost of securities for Federal income tax purpose at June 30, 1999
is $13,069,083.
The following amounts are based on costs for Federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 7,617,370
Aggregate gross unrealized depreciation (58,345)
-----------
Net unrealized appreciation $ 7,559,025
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
ADR = American Depository Receipt.
Percentages are based on net assets.
98
<PAGE> 115
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
The Intermediate Term Bond Portfolio is a diversified U.S. Treasury and
corporate bond fund that seeks to maximize income and capital appreciation
through the investment in bonds with maturities averaging between four and eight
years. The Portfolio maintained an average maturity of 5.05 years as of June 30,
1999.
For the quarter ended June 30, 1999, the Portfolio earned a total return of
- -6%. For the one year period ended June 30, 1999, the Portfolio earned a total
return of 3.15% and for the five and ten year periods the Portfolio earned an
average annual return of 6.68% and 7.16% respectively.
The bond market produced negative returns across all sectors during the
second quarter, as yields continued to ascend. Interest rates, as measured by
the benchmark five-year U.S. Treasury, surged another 55 basis points to close
the quarter at 5.65%; and the yield curve, as measured by the spread
differential between the 2-year U.S. Treasury note and the 30-year U.S. Treasury
bond, flattened. Short rates increased sharply relative to bonds in response to
a tightening move by the Federal Reserve Bank ("Fed"). The Asset-backed sector
was the best performer this past quarter, followed by Mortgages and Agencies.
The resilient U.S. economy continued to expand at a robust pace supported
by high productivity, consumer demand and low inflation. With global economic
conditions improving and commodity prices rising, the Fed found it appropriate
to raise the Fed Funds rate by 25 basis points to cool down the domestic economy
and preemptively stifle inflation.
The corporate sector underperformed, however, it was more a reflection of
the sharp rise in interest rates and the longer duration of the sector than the
credit fundamentals of Corporate America. Nonetheless, spreads did widen an
average of about 15-20 basis points, as market participants showed concern about
potential supply and Y2K issues. We expect strong second quarter earnings, which
bodes well for spreads and equity markets.
Our view for the coming quarter is that the economy will start to slow
down, as the recent hike in rates works its way through the system. Commodity
prices will probably continue to recover but inflation will most likely remain
in check. The Fed as always will remain vigilant, but another change in monetary
policy is not expected in the near future given that the Fed changed its bias to
"neutral" from a bias to "tighten".
Throughout the quarter, we increased the portfolio's exposure to Agencies,
which is a sector that offers relative cheapness versus other spread product.
The Portfolio's breakdown by sectors is as follows: Corporates 47%, U.S.
Treasuries 36%, Agencies 6%, Mortgage-backed securities 6%, Asset-backed
securities 3%, with the balance in cash equivalents. The average Moody's rating
on the bonds in the Portfolio is Aa3, reflecting emphasis on higher quality debt
issuers.
99
<PAGE> 116
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 45.6%
- ------------------------------------------------------------------
Arizona Public Service,
5.875%, due 02/15/04 $1,000,000 $ 968,634
Associates Corp. of North America,
6.000%, due 06/15/00 1,000,000 999,986
Associates Corp. of North America,
6.250%, due 11/01/08 1,000,000 949,432
BankBoston Corp., subordinated
note, 6.625%, due 02/01/04 1,000,000 993,068
Bear Stearns Co. Inc.,
7.250%, due 10/15/06 1,000,000 990,110
Chase Manhattan Corp.,
subordinated
note, 6.313%, due 08/01/28 1,000,000 966,953
Commonwealth Edison Co.,
7.000%, due 07/01/05 1,000,000 1,008,194
Connecticut Light & Power Co.,
7.250%, due 07/01/99 747,000 747,000
Conoco Inc.,
5.900%, due 04/15/04 1,000,000 974,416
CSX Corp.,
7.250%, due 05/01/04 144A 1,000,000 1,014,186
Delphi Auto Systems Corp.,
6.125%, due 05/01/04 1,000,000 974,164
Finova Capital Corp.,
6.250%, due 11/01/02 1,000,000 985,340
First Data Corp.,
6.750%, due 07/15/05 1,000,000 994,544
Ford Motor Credit Corp.,
6.500%, due 02/28/02 1,000,000 1,003,510
General Electric Capital Corp.,
6.660%, due 05/01/18 1,000,000 1,005,823
General Motors Acceptance Corp.,
7.125%, due 05/01/03 1,000,000 1,016,025
Illinois Central Railroad Co.,
6.750%, due 05/15/03 1,000,000 1,004,969
International Bank for
Reconstruction & Development,
5.625%, due 03/17/03 1,000,000 984,741
Laidlaw Inc.,
7.700%, due 08/15/02 1,000,000 1,001,236
MCI Worldcom, Inc.,
6.125%, due 08/15/01 1,000,000 995,124
National Rural Utilities,
6.750%, due 09/01/01 1,000,000 1,007,165
Peco Energy Transition Trust,
6.130%, due 03/01/09 1,000,000 948,170
Philip Morris Companies, Inc.,
7.500%, due 04/01/04 1,000,000 1,029,490
Potash Corp. of Saskatchewan Inc.,
7.125%, due 06/15/07 1,000,000 975,353
Potomac Edison Co.,
8.000%, due 06/01/06 1,000,000 1,005,093
Provident Bank,
6.375%, due 01/15/04 1,000,000 973,536
Tyco International Group, SA,
6.375%, due 06/15/05 1,000,000 974,508
USA Waste Services Inc.,
7.000%, due 10/01/04 1,000,000 1,009,324
-----------
TOTAL CORPORATE BONDS AND NOTES
(COST $27,682,590) $27,500,094
- ------------------------------------------------------------------
ASSET BACKED SECURITIES -- 3.1%
- ------------------------------------------------------------------
Chemical Master Credit Card Trust
Series 1996-2 Class A,
5.980%, due 09/15/08 $1,000,000 $ 973,990
Comed Rate Reduction, Class A-7,
5.740%, due 12/25/08 1,000,000 932,650
-----------
TOTAL ASSET BACKED SECURITIES
(COST $1,999,419) $ 1,906,640
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.5%
- ------------------------------------------------------------------
Federal Home Loan Bank,
5.125%, due 04/17/01 $3,000,000 $ 2,964,738
Federal Home Loan Mortgage Corp.,
4.840%, due 07/29/99 100,000 99,624
Federal Home Loan Mortgage Corp.,
REMIC, Series 1574,
6.500%, due 02/15/21 2,000,000 1,994,340
Federal National Mortgage Assn.,
4.800%, due 07/13/99 50,000 49,920
Federal National Mortgage Assn.,
4.840%, due 02/05/99 450,000 448,911
Federal National Mortgage Assn.,
REMIC, Trust 94-75,
7.000%, due 01/25/03 1,000,000 1,007,790
Student Loan Marketing Assn.,
5.780%, due 10/25/10 1,000,000 978,160
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $7,555,748) $ 7,543,483
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 35.5%
- ------------------------------------------------------------------
U.S. Treasury Note,
6.000%, due 08/15/00 $4,000,000 $ 4,025,000
U.S. Treasury Note,
6.625%, due 07/31/00 3,500,000 3,573,283
U.S. Treasury Note,
6.500%, due 05/31/00 5,000,000 5,112,500
U.S. Treasury Note,
5.750%, due 11/30/02 2,000,000 2,002,500
U.S. Treasury Note,
7.500%, due 02/15/05 1,000,000 1,076,875
U.S. Treasury Note,
6.500%, due 10/15/06 5,500,000 5,675,313
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $21,732,865) $21,465,471
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 0.4%
- ------------------------------------------------------------------
Sears Roebuck Acceptance Corp.,
5.130%, due 07/20/99
(COST $229,377) $ 230,000 $ 229,377
- ------------------------------------------------------------------
</TABLE>
See notes to financial statements.
100
<PAGE> 117
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATION -- 1.7%
- ------------------------------------------------------------------
British Columbia, Province of,
7.250%, due 09/01/36
(COST $992,799) $1,000,000 $ 1,012,170
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $60,192,798) -- 98.8% $59,657,235
OTHER ASSETS LESS LIABILITIES -- 1.2% 697,941
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $60,355,176
==================================================================
</TABLE>
The aggregate cost of securities for Federal income tax purpose at June 30,
1999 is $60,223,289.
The following amounts are based on costs for Federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 207,625
Aggregate gross unrealized depreciation (773,679)
-----------
Net unrealized appreciation ($ 566,054)
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
101
<PAGE> 118
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
The Long Term Bond Portfolio is a diversified U.S. Treasury and corporate
bond fund that seeks to maximize income and capital appreciation through the
investment in bonds with maturities generally longer than eight years. The
Portfolio's performance is expected to be more volatile than other fixed income
accounts with shorter average maturities, with both the Portfolio's risk and
ultimate return expected to be greater. The Portfolio had an average maturity of
20.2 years and a duration of 10.2 years as of June 30, 1999.
For the quarter ended June 30, 1999, the Portfolio earned a total return of
- -2.9%. For the one year period ended June 30, 1999, the Portfolio earned a total
return of -1.96% and for the five and ten year periods the Portfolio earned an
average annual return of 8.95% and 8.72% respectively.
The second quarter was a difficult one for the fixed income markets. All
major sectors of the market produced negative returns, largely due to the
substantial backup in interest rates. The yield on the Treasury long bond
started the quarter at 5.62% and rose to 5.97% by quarter end. The rise in
Treasury rates have produced a flatter yield curve, meaning short-term interest
rates rose more than long term interest rates. The key factor currently driving
this has been the Fed, which currently remains in play. After raising the Fed
Funds rate by 25 basis points it is currently anticipated that the Fed could
raise interest rates again by year-end. Corporate bonds have also been under
pressure during the quarter, however, the weak performance had not been
attributable to bad credit fundaments. Instead, it has come from the specter of
supply and the lack of investor demand. Large corporate supply had been driven
by heavy merger and acquisition financing, historically favorable interest rate
levels, and Y2K worries. This heavy supply has overwhelmed the positive credit
fundamentals and should continue but only for the near term. We expect the
technical outlook (supply/demand factors) to improve as the supply overhang
diminishes and the Fed becomes less of a factor as we enter the fourth quarter
and Y2K issues remain outstanding. Overall, the economy continues to carry
strong momentum, but despite a rebound in oil prices, there continues to be
virtually no evidence of renewed inflation. Our view is that the recent Fed
monetary tightening, but even more the run-up in market interest rates, will
have the effect of cooling off the economy in the second half.
As we noted in the previous quarter, we started to modestly add to our
corporate exposure and would look to participate in the heavy new issue
corporate supply during the second quarter. With the improving oil sector
fundamentals we added Conoco, a major integrated oil and gas company, to the
portfolio. The company tapped the bond market as part of its financing to split
from DuPont. We also added AAA rated Agency paper to the portfolio and reduced
some Treasury exposure as a way to add incremental yield. We continue to
maintain the core group on credit holdings based on market dominance, superb
management, and stability of earnings throughout market cycles. Some of these
credits are GE, Lucent, Fifth Third Bank, and USA Waste. Over the near term we
will be looking at opportunities to add cyclical names to the portfolio as these
spreads over Treasuries have remained at the wider range historically.
The Portfolio is currently invested in 38 corporate issuers, comprising 37%
of total invested assets, U.S. Treasury issues represent 51%, with 9% in
mortgage and asset-backed securities. The remaining represent cash equivalents.
Our continued emphasis on higher quality is reflected in the average Moody's
rating on issues in the Portfolio is Aa2.
102
<PAGE> 119
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 35.5%
- ------------------------------------------------------------------
<S> <C> <C>
AT&T Corp., 6.500%, due 03/15/29 $1,000,000 $ 899,386
Aetna Services Inc., 7.625%, due
08/15/26 1,000,000 980,339
Associate Corp. N.A. 6.250%, due
11/01/08 1,000,000 949,432
Boeing Co., 8.625%, due 11/15/31 1,000,000 1,130,216
Burlington Northern Railroad,
6.750%, due 03/15/29 1,000,000 912,934
Capita Equipment Receivable Trust
Series 1997-1, Class C, 6.480%,
due 10/15/06 1,000,000 967,040
Columbia/HCA Healthcare Corp.,
7.690%, due 06/15/25 1,000,000 835,280
Commonwealth Edison Co., 7.000%,
due 07/01/05 1,000,000 1,008,194
Conoco Inc., 6.950%, due 04/15/29 1,500,000 1,401,048
Crown Cork and Seal Co., Inc.,
7.375%, due 12/15/26 1,000,000 940,144
Discover Card Master Trust,
6.200%, due 05/16/06 1,000,000 991,000
Enersis S.A., 7.400%, due
12/01/16 1,000,000 875,202
Federal Express Corp., Series
97-A, 7.500%, due 01/15/18 1,945,242 1,933,609
Fifth Third Cap Trust I, Series
A, 8.136%, due 03/15/27 2,000,000 2,035,368
Ford Motor Co., 6.375%, due
02/01/29 2,000,000 1,737,686
General Electric Capital Corp.,
8.300%, due 09/20/09 2,000,000 2,239,216
General Motors Corp., 7.000%, due
06/15/03 1,000,000 1,009,367
GTE North Inc., Series D, 7.625%,
due 05/15/26 1,000,000 970,521
James River Corp., 7.750%, due
11/15/23 1,000,000 971,473
Laidlaw Inc., 7.875%, due
04/15/05 1,000,000 988,503
Legrand SA, 8.500%, due 02/15/25 1,000,000 1,079,887
Lockheed Martin Corp., 7.650%,
due 05/01/16 1,000,000 992,639
Lucent Technologies Inc., 5.500%,
due 11/15/08 2,000,000 1,840,100
MBIA Inc., 7.150%, due 07/15/27 1,000,000 967,229
MCI Worldcom, Inc., 6.950%, due
08/15/28 1,000,000 942,638
Merck & Co. Inc., 5.950%, due
12/01/28 1,000,000 875,970
Merrill Lynch & Co. Inc., 6.375%,
10/15/08 1,000,000 950,242
National City Bank, 7.250%, due
10/21/11 1,000,000 997,215
National Rural Utilities, 5.700%,
due 01/15/10 2,000,000 1,828,542
Peco Energy Transition Trust ABS,
6.130%, due 03/01/09 2,000,000 1,896,340
Philip Morris Companies Inc.,
7.250%, due 09/15/01 1,000,000 1,013,852
Seagram (J.E.) & Sons Inc.,
9.650%, due 08/15/18 1,000,000 1,188,238
Swiss Bank Corp., 7.750%, due
09/01/26 2,000,000 2,028,010
Texaco Capital, Inc., 9.750%, due
03/15/20 1,000,000 1,260,030
Tyco Int'l Group SA, 7.000%, due
06/15/28 2,000,000 1,852,548
USA Waste Services Inc., 7.000%,
due 10/01/04 1,000,000 1,009,324
------------
TOTAL CORPORATE BONDS AND NOTES
(COST $46,129,441) $ 44,498,762
- ------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.4%
- ------------------------------------------------------------------
Comed Rate Reduction, 5.740%, due
12/25/08 $1,000,000 $ 932,650
Standard Credit Card Master
Trust, Series 94-2A, Class A,
7.250%, due 04/07/06 2,000,000 2,068,636
------------
TOTAL ASSET BACKED SECURITIES
(COST $3,102,760) $ 3,001,286
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.5%
- ------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
4.980%, due 08/19/99 $ 100,000 $ 99,322
Federal Home Loan Mortgage Corp.,
6.850%, due 01/15/22 1,000,000 990,440
Federal National Mortgage Assn.,
4.850%, due 08/02/99 150,000 149,353
Federal National Mortgage Assn.,
4.900%, due 08/16/99 150,000 149,061
Federal National Mortgage Assn.,
6.375%, due 06/15/09 1,000,000 989,453
Federal National Mortgage Assn.,
REMIC, Trust 92-198, 7.500%,
due 09/25/22 2,000,000 2,021,411
Federal National Mortgage Assn.,
6.250%, due 05/15/29 1,000,000 941,715
Student Loan Marketing Assn.,
5.950%, due 07/25/09 1,000,000 991,250
Tennessee Valley Authority,
5.375%, due 11/13/08 1,000,000 922,046
Tennessee Valley Authority,
6.000%, due 03/15/13 1,000,000 940,000
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST
$8,165,255) $ 8,194,051
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 51.1%
- ------------------------------------------------------------------
U.S. Treasury Bond, 7.500%, due
11/15/16 $11,000,000 $ 12,364,693
U.S. Treasury Bond, 5.500%, due
08/15/28 6,000,000 5,478,750
U.S. Treasury Bond, 6.625%, due
05/15/07 3,000,000 3,124,689
U.S. Treasury Bond, 6.750%, due
08/15/26 9,500,000 10,135,313
U.S. Treasury Bond, 7.875%, due
02/15/21 10,000,000 11,843,750
U.S. Treasury Bond, 6.625%, due
02/15/27 15,500,000 16,318,602
U.S. Treasury Inflation Index
Bond, 3.625%, due 04/15/28 1,000,000 944,375
U.S. Treasury Strips, 0.000%, due
05/15/18 12,900,000 3,914,363
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $68,185,303) $ 64,124,535
- ------------------------------------------------------------------
</TABLE>
See notes to financial statements.
103
<PAGE> 120
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
COMMERCIAL PAPER -- 1.2%
- ------------------------------------------------------------------
<S> <C> <C>
American Express Credit Corp.,
5.050%, due 07/22/99 $ 300,000 $ 299,116
General Electric Capital Corp.,
4.840%, due 07/12/99 550,000 549,187
TRW Inc., 5.300%, due 07/21/99 570,000 568,322
------------
TOTAL COMMERCIAL PAPER
(COST $1,416,625) $ 1,416,625
- ------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS -- 1.7%
- ------------------------------------------------------------------
British Columbia, Province of,
7.250%, due 09/01/36 $1,000,000 $ 1,012,170
Hydro-Quebec, 8.500%, due
12/01/29 1,000,000 1,118,340
------------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(COST $2,050,221) $ 2,130,510
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $129,049,605) -- 98.4% $123,365,769
OTHER ASSETS LESS LIABILITIES -- 1.6% 2,060,128
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $125,425,897
==================================================================
</TABLE>
The aggregate cost of securities for Federal income tax purposes at June 30,
1999 is $129,080,097.
The following amounts are based on costs for Federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 1,705,072
Aggregate gross unrealized depreciation (7,419,400)
-----------
Net unrealized depreciation ($5,714,328)
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
104
<PAGE> 121
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
The equity markets yet again turned out a superior performance in the
second quarter of 1999. Rebounding from a global financial scare late last year,
the markets took a look at the continued strength and profitability of the
domestic economy and liked what it saw. Interestingly, stocks of smaller
companies, as represented in the Russell 2000 Index, grabbed the lead
mid-spring, and for the first time in some while performed better than the
big-cap leaders of past quarters. Stock market strength was especially
impressive in the presence of a substantial bond market weakness. Generally,
higher interest rates act as a drag on stocks, but so far equities have pretty
much shrugged off about a full percentage point rise in bond yields to date in
1999. The benchmark S&P 500 Index was up 6.92% for the quarter, while the
Russell 2000 Index of smaller stocks was up 15.55%. The benchmark Lehman
Brothers Gov't/Corporate bond Index fell by 1.10%.
We see the economy, and thus corporate profits cooling a little bit in the
second half. Year-to-date gains in the stock market would still make for a
decent 1999 even if stocks were flat for the rest of the year, and that is our
expected outcome. We do not see a recession, and feel that the primary downside
risk is an economy that overheats and sends interest rates much higher -- a bear
market in bonds would spill over to equities.
For the quarter ended June 30, 1999, the Portfolio earned a total return of
5.24%. For the one year period ended June 30, 1999, the Portfolio earned a total
return of 25.30%. For the five and ten year periods ended June 30, 1999, the
Portfolio earned an average annual return of 21.74% and 14.67% respectively.
These returns take into account charges imposed by the Portfolio. Additional
charges are imposed by the Variable Accounts. Of course, past performance does
not guarantee future investment results.
As of June 30, 1999, the Diversified Portfolio was invested 83% in common
stocks, 15% in bonds, and 2% in money-market equivalents.
105
<PAGE> 122
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 81.9%
- ------------------------------------------------------------------
AIR TRANSPORTATION -- 2.5%
AMR Corp.* 500 $ 34,125
Delta Airlines Inc. 600 28,813
UAL Corp. 400 26,000
----------
88,938
----------
AUTOMOBILES -- 0.8%
Ford Motor Co. 500 28,219
----------
BANKS/MAJOR -- 3.0%
BankAmerica Corp. 300 21,993
Chase Manhattan Corp. 500 43,313
Citigroup Inc. 900 42,750
----------
108,056
----------
BANKS/REGIONAL -- 2.3%
BankBoston Corp. 500 25,563
Fleet Financial Group, Inc. 500 22,188
Mellon Bank Corp. 1,000 36,375
----------
84,126
----------
BIO TECHNOLOGIES -- 1.4%
BioGen, Inc.* 800 51,450
----------
CABLE TELEVISION -- 2.7%
Cablevision Systems Corp.* 600 42,000
Comcast Corp., (Class A) 1,400 53,813
----------
95,813
----------
CHEMICALS -- 2.2%
DuPont (E.I.) de Nemours & Co. 600 40,988
Dow Chemical Co. 300 38,063
----------
79,051
----------
COMPUTER SERVICES -- 0.9%
America Online, Inc.* 300 33,150
----------
COMPUTER STORAGE DEVICES -- 0.6%
EMC Corp. 400 22,000
----------
DRUGS -- 5.5%
American Home Products Corp. 500 28,750
Bristol Myers Squibb Co. 300 35,219
Lilly (Eli) & Co. 200 14,325
Pfizer Inc. 400 32,925
Schering-Plough Corp. 600 31,800
SmithKline Beecham PLC, ADR 400 26,425
Warner Lambert Co. 600 27,750
----------
197,194
----------
ELECTRICAL EQUIPMENT -- 3.4%
Emerson Electric Co. 500 31,438
General Electric Co. 800 90,400
----------
121,838
----------
ELECTRONICS -- 3.5%
Applied Materials, Inc.* 500 36,938
Hewlett-Packard Co. 300 30,150
Intel Corp. 500 29,750
Texas Instruments, Inc. 200 29,000
----------
125,838
----------
ENTERTAINMENT -- 3.9%
Cumulus Media Inc. (Class A)* 500 10,938
Disney (Walt) Co. 900 27,731
Infinity Broadcasting Corp.
(Class A)* 1,200 35,700
Time Warner, Inc 900 66,150
----------
140,519
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES -- 2.6%
American Express Co. 300 $ 39,038
Associates First Capital Corp.
(Class A) 600 26,588
Morgan (JP) & Co. Inc. 200 28,100
----------
93,726
----------
HOSPITAL MANAGEMENT -- 0.5%
United HealthCare Corp. 300 18,788
----------
HOSPITAL SUPPLIES -- 1.1%
Johnson & Johnson 400 39,200
----------
INSURANCE -- 1.6%
American International Group,
Inc. 500 58,531
----------
OFFICE & BUSINESS EQUIPMENT -- 7.1%
Compaq Computer Corp. 600 14,213
Dell Computer Corp.* 800 29,600
International Business Machines
Corp. 600 77,550
Microsoft Corp.* 800 72,150
Oracle Corp.* 500 18,563
Sun Microsystems, Inc.* 600 41,325
----------
253,401
----------
OIL -- DOMESTIC -- 0.7%
Atlantic Richfield Co. 300 25,069
----------
OIL -- INTERNATIONAL -- 4.8%
BP Amoco PLC Sponsored ADR 400 43,400
Chevron Corp. 300 28,556
Exxon Corp. 500 38,563
Mobil Corp. 300 29,700
Texaco, Inc. 500 31,250
----------
171,469
----------
OIL -- SERVICES -- 4.9%
Baker Hughes, Inc. 800 26,800
B.J. Services Co.* 1,000 29,437
Diamond Offshore Drilling Inc. 900 25,537
Halliburton Holdings Co. 700 31,675
Schlumberger Limited 600 38,213
Weatherford International, Inc.* 700 25,638
----------
177,300
----------
PAPER & PAPER PRODUCTS -- 4.7%
Bowater Inc. 700 33,075
Champion International Corp. 700 33,513
International Paper Co. 600 30,300
Georgia-Pacific Corp. 900 42,638
Temple-Inland Inc. 400 27,300
----------
166,826
----------
RESTAURANT -- 1.2%
McDonald's Corp. 1,000 41,313
----------
RETAIL -- 3.1%
Gap (The) Inc. 900 45,338
Home Depot Inc. 500 32,218
Wal-Mart Stores Inc. 700 33,775
----------
111,331
----------
</TABLE>
See notes to financial statements.
106
<PAGE> 123
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 12.3%
Cisco Systems, Inc.* 600 $ 38,700
General Instrument Corp.* 1,000 42,500
Global Crossing LTD 600 25,537
L-3 Communications Holdings Inc.* 500 24,156
Lucent Technologies Inc. 600 40,463
MCI WorldCom, Inc.* 900 77,625
Nokia Corp., Sponsored ADS 600 54,937
Qwest Communications Int'l. Inc. 1,800 59,513
Sprint Corp. "PCS"* 400 22,850
Tellabs Inc.* 800 54,050
----------
440,331
----------
TOBACCO -- 0.6%
Philip Morris Cos., Inc. 500 20,094
----------
U.S. GOVERNMENT AGENCIES -- 1.0%
Federal National Mortgage Assn 500 34,179
----------
UTILITIES -- TELEPHONE -- 3.0%
AT&T Corp. 1,200 66,975
Sprint Corp. "FON" 800 42,250
----------
109,225
----------
TOTAL COMMON STOCKS
(COST $1,699,619) $2,936,975
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATION -- 2.8%
- ------------------------------------------------------------------
Federal National Mortgage Assn.,
4.84%, due 07/19/99
(COST $99,758) $100,000 $ 99,758
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 14.6%
- ------------------------------------------------------------------
U.S. Treasury Note, 7.50%, due
05/15/02 (COST $509,850) $500,000 $ 524,219
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $2,309,227) -- 99.3% $3,560,952
OTHER ASSETS LESS LIABILITIES -- 0.7% 24,809
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $3,585,761
==================================================================
</TABLE>
The aggregate cost of securities for Federal income tax purposes at June 30,
1999 is $2,313,963.
The following amounts are based on costs for Federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $1,260,072
Aggregate gross unrealized depreciation (13,083)
----------
Net unrealized appreciation $1,246,989
==========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
* Non-income producing security as defined by the Investment Company Act of
1940.
ADR = American Depository Receipts.
Percentages are based on net assets.
107
<PAGE> 124
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
U.S. Treasury and Agency securities fell steadily in price in the second
quarter 1999, continuing what has become an eight-month bear market for bonds.
The price drop is attributable to the effects of surging domestic growth, global
economic recovery, and a firming in key commodity prices -- all of which led
market participants to expect (correctly) a monetary tightening by the Federal
Reserve on the last day of June. Treasury yields moved up by 35-55 basis points
(hundredths of a percentage point), lifting interest rates up to levels not seen
since mid 1997. The yield curve remained flat by historical standards, with
relatively little incremental return for extending out in maturity. Of further
note was the continued relative poor performance of U.S. Government Agency
securities, which currently trade with historically wide yield risk premiums
given their implicit government backing.
The economy currently carries strong momentum, but despite a rebound in oil
prices, there continues to be virtually no evidence of renewed inflation. Our
view is that the recent Fed monetary tightening, but even more the run-up in
market interest rates, will have the effect of cooling off the economy in the
second half. Bonds have moved into the upper end of a broad trading range, and
now offer yields that we find attractive for the patient investor. The portfolio
has moved towards a fully invested duration posture, with a bias in favor of
lower volatility and a somewhat flatter yield curve.
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 3.8 years at June 30, 1999.
For the quarter ended June 30, 1999, the Portfolio earned a total return of
- -2%. For the one year period ended June 30, 1999, the Portfolio earned a total
return of 3.73%. Since inception in December 1994, the Portfolio earned an
average annual return of 5.39% for the period ended June 30, 1999.
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.
108
<PAGE> 125
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 37.7%
- ------------------------------------------------------------------
U.S. Treasury Note, 6.000%, due
08/15/99 $ 1,000,000 $ 1,001,563
U.S. Treasury Note, 5.875%, due
11/15/99 1,000,000 1,003,125
U.S. Treasury Note 7.750%, due
11/30/99 1,000,000 1,010,938
U.S. Treasury Note, 6.250%, due
01/31/02 10,000,000 10,146,880
U.S. Treasury Note 5.625%, due
12/31/02 1,000,000 997,813
U.S. Treasury Note, 5.500%, due
01/31/03 3,000,000 2,979,375
U.S. Treasury Note, 5.500%, due
10/25/06 5,000,000 5,159,375
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $22,649,650) $22,299,069
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 61.2%
- ------------------------------------------------------------------
Attransco, Inc., 6.120%, due
04/01/08 $ 1,899,042 $ 1,820,877
Federal Home Loan Bank, 4.875%,
due 01/22/02 1,000,000 975,208
Federal Home Loan Bank, 5.125%,
due 02/26/02 1,000,000 980,055
Federal Home Loan Bank, 5.500%,
due 01/21/03 2,000,000 1,964,264
Federal Home Loan Mortgage Corp.,
5.100%, due 07/09/99 400,000 399,547
Federal Home Loan Mortgage Corp.,
4.730%, due 07/12/99 200,000 199,714
Federal Home Loan Mortgage Corp.,
4.730%, due 07/14/99 650,000 648,899
Federal Home Loan Mortgage Corp.,
4.840%, due 07/29/99 2,325,000 2,316,248
Federal Home Loan Mortgage Corp.,
4.920%, due 08/19/99 350,000 347,656
Federal Home Loan Mortgage Corp.,
4.980%, due 08/19/99 225,000 223,475
Federal Home Loan Mortgage Corp.,
6.300%, due 06/01/04 2,000,000 1,982,028
Federal National Mortgage Corp.,
6.500%, due 11/15/21 1,500,000 1,479,524
Federal National Mortgage Corp.,
6.500%, due 03/01/26 1,000,000 964,100
Federal National Mortgage Assn.,
4.770%, due 07/01/99 3,300,000 3,300,000
Federal National Mortgage Assn.,
4.800%, due 07/13/99 75,000 74,880
Federal National Mortgage Assn.,
4.740%, due 07/19/99 1,050,000 1,047,512
Federal National Mortgage Assn.,
4.960%, due 07/28/99 150,000 149,442
Federal National Mortgage Assn.,
4.900%, due 08/24/99 400,000 397,060
Federal National Mortgage Assn.,
7.000%, due 01/25/03 285,000 287,220
Federal National Mortgage Assn.,
5.750%, due 04/15/03 2,000,000 1,997,146
Federal National Mortgage Assn.,
5.875%, due 04/23/04 1,000,000 973,631
Federal National Mortgage Assn.
REMIC Trust, 5.750%, due
08/25/18 399,933 398,913
Federal National Mortgage Assn.
REMIC Trust, 6.500%, due
10/25/23 1,300,000 1,307,924
Government National Mortgage
Assn., 7.500%, due 05/15/24 447,570 452,565
Government National Mortgage
Assn., 7.500%, due 10/15/24 160,171 161,959
Government National Mortgage
Assn., 7.000%, due 09/20/28 1,698,698 1,670,619
Private Export Funding Corp.,
7.010%, due 04/30/04 2,000,000 2,068,690
Private Export Funding Corp.,
5.250%, due 05/15/05 2,500,000 2,375,495
Tennessee Valley Authority Series
A, 6.375%, due 06/15/05 500,000 501,467
Tennessee Valley Authority Series
A, 5.375%, due 11/13/08 2,000,000 1,844,091
Tennessee Valley Authority Series
A, 6.000%, due 03/15/13 1,000,000 940,000
U.S. Government -- HUD, 6.230%,
due 08/01/02 2,000,000 2,012,623
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $36,783,846) $36,242,832
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $59,433,496) -- 98.9% $58,541,901
OTHER ASSETS LESS LIABILITIES -- 1.1% 654,607
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $59,196,508
==================================================================
</TABLE>
The aggregate cost of securities for federal income tax purposes on June 30,
1999 is $59,433,496.
The following amounts are based on costs for federal income tax purposes:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation $ 151,802
Aggregate gross unrealized depreciation (1,043,397)
-----------
Net unrealized appreciation $ (891,595)
===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
Percentages are based on net assets.
109
<PAGE> 126
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
During the past three months, U.S. financial markets have seemingly
regained a measure of stability clearly lacking in the second half of 1998. The
equity markets made new highs while the fixed income markets adjusted to the
widely anticipated and telegraphed (since the Federal Reserve's tightening bias
adopted at the May 18 FOMC meeting) 0.25% increase in the federal funds rate
undertaken at the June 29-30 FOMC meeting. The U.S. Treasury market spent much
of the quarter in retreat as the long bond's yield moved above 6% for the first
time since May 1998. In like fashion, yields on money market securities
generally increased about 0.25% during the past few months. The Fed felt
compelled to increase interest rates based on the continued buoyant performance
of the U.S. economy despite the relative absence of inflationary signs. The
Fed's implicit "taking back" some or all of last year's cumulative 0.75% easing
is on the minds of some market participants. The current estimate of first
quarter real GDP is 4.1% with second quarter tracking similarly, a level not
likely to provide comfort to Federal Reserve Board members wary of falling
behind the curve in addressing above-trend economic growth and inevitable
pressures leading to an uptick in inflation. Thus, while April's 0.7% CPI
increase (core, 0.4% gain) is viewed as an aberration (and confirmed by May's
0.0%, core 0.1% gain), strength in the U.S.'s retail sales, equity markets,
labor markets, etc. provided sufficient cover for the Fed to raise interest
rates at quarter's close. Accompanying the rate increase was a move by the FOMC
to remove the aforementioned tightening bias from its policy directive going to
a neutral stance on near-term prospective interest rate moves. There has been
much debate as to the implications of the bias removal, but it seems that,
presented with further evidence that the U.S. economy refuses to glide toward a
desired 3-3.5% real GDP path, the Fed will not hesitate to move interest rates
up again in the third quarter. The fixed income markets are pricing in at least
one more Fed tightening in 1999. Such a move at the August 24 Fed meeting is
very possible. Clues as to what the Fed may do near term may come at Chairman
Greenspan's July 22 Humphrey-Hawkins testimony before the House Banking
Committee. For the Fed to avoid falling behind the inflation curve, the thinking
here is that the Fed will err on the side of preemptively tightening in the
months ahead. The Fed could move sooner rather than later: it may likely find
itself in the position of providing increased liquidity in the fourth quarter to
address Y2K distortions just beginning to become evident in the markets. Thus,
there may soon come a time to lock in attractive money market yields extending
into the year 2000, but we have not yet reached that point.
The Treasury yield curve moved upward significantly in the second quarter
with a particular increase in interest rates between two years and ten years.
Interest rates on the long bond increased 35 basis points (1/100 of a
percentage point) during the quarter from a yield of 5.62% at March 31, 1999 to
5.97% at quarter end. Yields on the short end held also rose, as the three-month
T-bill yield moved up 29 basis points from 4.47% at March 31, 1999 to 4.76% at
June 30, 1999.
Going forward, the average maturity of the Portfolio will be adjusted
selectively to capitalize on opportunities where the portfolio will be rewarded
for duration extension. To take advantage of such perceived market
opportunities, the average maturity of the portfolio was reduced from 46.3 days
at March 31, 1999, to approximately 39.3 days at June 30, 1999.
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 marketplace without sacrificing current income. The 30-day
and 7-day current yields of the Portfolio were 4.55% and 4.60%, respectively, as
of June 30, 1999.
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.
110
<PAGE> 127
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 95.7%
- ------------------------------------------------------------------
American Crystal Sugar Co.,
5.120%, due 07/09/99 $2,000,000 $1,997,724
American Express Credit Corp.,
4.800%, due 07/06/99 2,600,000 2,598,267
American Express Credit Corp.,
4.860%, due 07/06/99 3,700,000 3,697,503
American Express Credit Corp.,
5.050%, due 07/22/99 650,000 648,085
Aristar, Inc., 5.150%, due
07/19/99 4,000,000 3,989,700
Associates Corp. N.A., 4.850%,
due 7/23/99 4,000,000 3,988,144
Associates Corp. N.A., 4.880%,
due 10/08/99 8,000,000 7,892,640
Bank One, Cleveland, N.A.,
4.910%, due 07/15/99(a) 3,401,000 3,237,000
Capital One Funding Corp.,
4.910%, due 07/15/99(a) 3,400,000 3,564,000
C.I.T. Group Holdings, Inc.,
4.840%, due 07/09/99 5,200,000 5,194,407
Ciesco, L.P., 5.000%, due
07/19/99 6,700,000 6,683,250
Ciesco, L.P., 4.980%, due
07/28/99 2,700,000 2,689,916
Coca-Cola Enterprises Inc.,
5.010%, due 08/09/99 550,000 547,015
Coca-Cola Enterprises Inc.,
4.900%, due 08/11/99 3,625,000 3,604,770
Commercial Credit Corp., 4.970%,
due 07/13/99 14,000,000 13,976,807
CSX Corp., 5.090%, due 07/09/99 2,000,000 1,997,738
Countrywide Funding Corp.,
4.920%, due 07/08/99 2,600,000 2,597,513
Countrywide Funding Corp.,
5.000%, due 07/19/99 5,000,000 4,987,500
Countrywide Funding Corp.,
5.000%, due 08/03/99 6,850,000 6,818,604
Dayton Hudson Corp., 5.050%, due
07/09/99 2,000,000 1,997,756
Edison Asset Securitization,
4.850%, due 07/01/99 11,200,000 11,200,000
Edison Asset Securitization,
4.980%, due 07/30/99 2,050,000 2,041,776
Enterprise Funding Corp., 5.130%,
due 07/09/99 4,009,000 4,004,430
Enterprise Funding Corp., 4.910%,
due 07/14/99 4,000,000 3,992,908
Enterprise Funding Corp., 5.030%,
due 07/28/99 4,832,000 4,813,771
Enterprise Funding Corp., 4.870%,
due 08/26/99 1,000,000 992,424
Finova Capital Corp., 4.940%, due
07/30/99 6,000,000 5,976,123
Finova Capital Corp., 4.880%, due
08/27/99 2,500,000 2,480,683
Ford Motor Credit Corp., 4.840%,
due 07/08/99 7,000,000 6,993,412
Ford Motor Credit Corp., 5.200%,
due 07/14/99 1,250,000 1,247,653
Ford Motor Credit Corp. Canada,
4.820%, due 07/09/99 1,000,000 998,929
General Electric Capital Corp.,
5.200%, due 07/06/99 700,000 699,494
General Electric Capital Corp.,
4.810%, due 07/07/99 2,200,000 2,198,236
General Electric Capital Corp.,
4.840%, due 07/12/99 800,000 798,817
General Motors Acceptance Corp.,
4.810%, due 07/12/99 8,170,000 8,157,992
Golden Funding Corp -- Series B.,
5.050%, due 07/07/99 9,994,000 9,985,588
Golden Funding Corp -- Series B.,
5.020%, due 08/03/99 4,000,000 3,981,593
Goldman Sachs Group, L.P.,
5.080%, due 07/15/99 5,000,000 5,000,000
Goldman Sachs Group, L.P.,
5.400%, due 02/25/00 6,000,000 6,000,000
Heller Financial, Inc., 5.000%,
due 07/20/99 14,000,000 13,963,056
Household International Inc.,
4.830%, due 07/02/99 2,850,000 2,849,618
Houston Industries Financial
Corp., 5.080%, due 07/14/99 1,600,000 1,597,065
Houston Industries Financial
Corp., 5.150%, due 07/15/99 1,000,000 997,997
Johnson Controls Inc., 4.940%,
due 07/19/99 11,800,000 11,770,854
Lehman Syndicated Loan Funding,
5.053%, due 03/15/00 7,000,000 7,000,000
Lehman Brothers Holdings Inc.,
6.150%, due 03/15/00 3,575,000 3,582,987
MCI Worldcom, Inc., 5.180%, due
07/09/99 2,600,000 2,597,007
Merrill Lynch and Co., Inc.,
4.810%, due 07/06/99 4,000,000 3,997,328
Merrill Lynch and Co., Inc.,
4.810%, due 07/08/99 3,225,000 3,221,984
Montauk Funding Corp., 4.840%,
due 07/15/99 8,552,000 8,535,903
Montauk Funding Corp., 4.840%,
due 07/27/99 900,000 896,854
Morgan (JP) & Co., 4.850%, due
08/20/99 3,125,000 3,103,950
Norfolk Southern Corp., 5.200%,
due 07/22/99 1,300,000 1,296,057
Paccar Financial Services Ltd.,
5.200%, due 07/29/99 7,200,000 7,170,880
Sears Roebuck Acceptance Corp.,
5.130%, due 07/20/99 960,000 957,401
TRW, Inc., 5.230%, due 07/13/99 1,000,000 998,257
Textron Financial Corp., 5.150%,
due 07/14/99 2,600,000 2,595,164
Transamerica Finance Group Inc.,
5.100%, due 08/27/99 9,700,000 9,621,672
Union Bancal Corp., 5.250%, due
05/08/00 5,000,000 5,000,000
Wachovia Corp., 4.970%, due
07/29/99 8,201,001 8,201,001
Windmill Funding Corp., 5.030%,
due 08/12/99 1,800,000 1,789,563
------------
TOTAL COMMERCIAL PAPER
(COST $266,016,766) $266,016,766
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION -- 2.9%
- ------------------------------------------------------------------
Federal Home Loan Bank, 5.000%,
due 02/10/00 (COST $8,000,000) $8,000,000 $8,000,000
- ------------------------------------------------------------------
</TABLE>
See notes to financial statements.
111
<PAGE> 128
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
DESCRIPTION PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED SECURITIES -- 1.4%
- ------------------------------------------------------------------
Asset-Backed Sec. Inv. Trust,
5.278%, due 01/15/03
(COST $4,000,000) $4,000,000 $4,000,000
- ------------------------------------------------------------------
TOTAL INVESTMENTS (COST
$278,016,766) -- 100% $278,016,766
OTHER ASSETS LESS LIABILITIES -- 0% 36,429
- ------------------------------------------------------------------
NET ASSETS -- 100.0% $278,053,195
- ------------------------------------------------------------------
</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
June 30, 1999.
Percentages are based on net assets.
112
<PAGE> 129
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<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)*................... $3,466,539 $20,628,108 $59,657,235 $123,365,769 $3,560,952
Cash............................................. 40,233 73,602 49,028 64,480 51,063
Dividends receivable............................. 2,144 30,904 0 0 1,764
Interest receivable.............................. 0 0 888,601 2,155,206 4,793
Receivable for fund shares sold.................. 35 2,271 15,656 102,300 10
Receivable for securities sold................... 13,846 0 0 0 0
---------- ----------- ----------- ------------ ----------
Total assets......................................... 3,522,797 20,734,885 60,610,520 125,687,755 3,618,582
---------- ----------- ----------- ------------ ----------
LIABILITIES
Payable for fund shares redeemed................. 241 6,587 203,489 176,866 362
Payable for securities purchased................. 5,811 0 0 0 12,651
Accrued expenses:
Investment advisory fees.................... 1,532 9,320 27,440 57,119 1,580
Custodian fees.............................. 5,236 7,190 3,403 1,680 5,533
Accounting fees............................. 2,315 2,607 3,069 3,684 2,322
Professional fees........................... 12,349 13,556 15,760 18,583 10,243
Miscellaneous fees.......................... 101 769 2,183 3,926 130
---------- ----------- ----------- ------------ ----------
Total liabilities.................................... 27,585 40,029 255,344 261,858 32,821
---------- ----------- ----------- ------------ ----------
NET ASSETS........................................... $3,495,212 $20,694,856 $60,355,176 $125,425,897 $3,585,761
========== =========== =========== ============ ==========
Net assets consist of:
Capital stock -- $.01 par value.................. $ 846 $ 8,457 $ 56,231 $ 100,083 $ 1,777
Additional paid-in capital....................... 1,795,475 11,756,573 59,362,422 127,261,794 2,018,089
Undistributed net investment income (loss)....... (35,068) 159,192 1,634,921 3,273,414 (47,391)
Undistributed/accumulated net realized gain
(loss) on investments.......................... 351,483 1,224,836 (162,835) 474,442 361,561
Net unrealized appreciation (depreciation) of
investments.................................... 1,382,476 7,545,798 (535,563) (5,683,836) 1,251,725
---------- ----------- ----------- ------------ ----------
NET ASSETS........................................... $3,495,212 $20,694,856 $60,355,176 $125,425,897 $3,585,761
========== =========== =========== ============ ==========
Shares of capital stock outstanding.................. 84,633 845,670 5,623,116 10,008,345 177,721
---------- ----------- ----------- ------------ ----------
Net asset value per share of outstanding capital
stock.............................................. $ 41.30 $ 24.47 $ 10.73 $ 12.53 $ 20.18
========== =========== =========== ============ ==========
*Investments at cost................................. $2,084,063 $13,082,310 $60,192,798 $129,049,605 $2,309,227
<CAPTION>
GOVERNMENT MONEY
SECURITIES MARKET
PORTFOLIO PORTFOLIO
----------- ------------
<S> <C> <C>
ASSETS
Securities, at value (Note 2)*................... $58,541,901 $278,016,766
Cash............................................. 74,233 53,244
Dividends receivable............................. 0 0
Interest receivable.............................. 766,976 646,232
Receivable for fund shares sold.................. 46,775 929,102
Receivable for securities sold................... 0 0
----------- ------------
Total assets......................................... 59,429,885 279,645,344
----------- ------------
LIABILITIES
Payable for fund shares redeemed................. 188,557 1,429,669
Payable for securities purchased................. 0 0
Accrued expenses:
Investment advisory fees.................... 27,180 104,764
Custodian fees.............................. 1,447 12,323
Accounting fees............................. 2,789 5,681
Professional fees........................... 11,855 28,164
Miscellaneous fees.......................... 1,549 11,548
----------- ------------
Total liabilities.................................... 233,377 1,592,149
----------- ------------
NET ASSETS........................................... $59,196,508 $278,053,195
=========== ============
Net assets consist of:
Capital stock -- $.01 par value.................. $ 54,798 $ 2,780,532
Additional paid-in capital....................... 58,589,595 275,272,663
Undistributed net investment income (loss)....... 1,433,719 0
Undistributed/accumulated net realized gain
(loss) on investments.......................... 9,991 0
Net unrealized appreciation (depreciation) of
investments.................................... (891,595) 0
----------- ------------
NET ASSETS........................................... $59,196,508 $278,053,195
=========== ============
Shares of capital stock outstanding.................. 5,479,834 278,053,195
----------- ------------
Net asset value per share of outstanding capital
stock.............................................. $ 10.80 $ 1.00
=========== ============
*Investments at cost................................. $59,433,496 $278,016,766
</TABLE>
See notes to financial statements.
113
<PAGE> 130
MONY SERIES FUND, INC.
STATEMENTS OF OPERATIONS For the six months ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM
EQUITY GROWTH EQUITY INCOME TERM BOND BOND DIVERSIFIED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ --------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest........................................... $ 2,877 $ 6,472 $ 1,810,808 $ 3,884,209 $ 19,976
Dividends.......................................... 14,568 226,121 0 0 13,266
-------- ---------- ----------- ------------ --------
Total investment income....................... 17,445 232,593 1,810,808 3,884,209 33,242
-------- ---------- ----------- ------------ --------
EXPENSES:
Investment advisory fees (Note 3).................. 8,227 49,879 150,143 326,109 8,607
Custodian fees..................................... 4,802 4,975 2,572 1,474 4,843
Accounting fees (Note 3)........................... 12,617 13,703 16,285 19,755 12,617
Professional fees.................................. 4,023 4,281 4,953 5,861 4,021
Directors fees..................................... 102 678 2,132 4,080 101
Miscellaneous fees................................. 51 323 1,129 2,221 49
-------- ---------- ----------- ------------ --------
Total expenses................................ 29,822 73,839 177,214 359,500 30,238
Expenses reduced by a custodian fee
arrangement................................. (794) (439) (1,327) (959) (622)
-------- ---------- ----------- ------------ --------
Net expenses.................................. 29,028 73,400 175,887 358,541 29,616
-------- ---------- ----------- ------------ --------
Net investment income (loss)........................... (11,583) 159,193 1,634,921 3,525,668 3,626
-------- ---------- ----------- ------------ --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTE 2):
Realized gain from security transactions (excluding
short-term securities):
Proceeds from sales........................... 715,752 3,980,792 11,419,730 18,150,578 644,100
Less: Cost of securities sold................. 383,160 2,769,184 11,417,272 17,897,905 328,796
-------- ---------- ----------- ------------ --------
Net realized gain on investments....................... 332,592 1,211,608 2,458 252,673 315,304
Net increase (decrease) in unrealized appreciation of
investments.......................................... 188,277 1,067,041 (1,988,140) (12,012,100) 149,494
-------- ---------- ----------- ------------ --------
Net realized and unrealized gain (loss) on
investments.......................................... 520,869 2,278,649 (1,985,682) (11,759,427) 464,798
-------- ---------- ----------- ------------ --------
Net increase (decrease) in net assets resulting from
operations........................................... $509,286 $2,437,842 $ (350,761) $ (8,233,759) $468,424
======== ========== =========== ============ ========
<CAPTION>
GOVERNMENT
SECURITIES MONEY MARKET
PORTFOLIO PORTFOLIO
---------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Interest........................................... $ 1,614,846 $7,753,153
Dividends.......................................... 0 0
----------- ----------
Total investment income....................... 1,614,846 7,753,153
----------- ----------
EXPENSES:
Investment advisory fees (Note 3).................. 147,329 613,947
Custodian fees..................................... 3,445 11,535
Accounting fees (Note 3)........................... 15,331 35,102
Professional fees.................................. 4,740 10,101
Directors fees..................................... 1,620 12,779
Miscellaneous fees................................. 929 7,134
----------- ----------
Total expenses................................ 173,394 690,598
Expenses reduced by a custodian fee
arrangement................................. (2,258) (3,327)
----------- ----------
Net expenses.................................. 171,136 687,271
----------- ----------
Net investment income (loss)........................... 1,443,710 7,065,882
----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTE 2):
Realized gain from security transactions (excluding
short-term securities):
Proceeds from sales........................... 585,286 0
Less: Cost of securities sold................. 585,286 0
----------- ----------
Net realized gain on investments....................... 0 0
Net increase (decrease) in unrealized appreciation of
investments.......................................... (1,659,567) 0
----------- ----------
Net realized and unrealized gain (loss) on
investments.......................................... (1,659,567) 0
----------- ----------
Net increase (decrease) in net assets resulting from
operations........................................... $ (215,857) $7,065,882
=========== ==========
</TABLE>
See notes to financial statements.
114
<PAGE> 131
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO EQUITY INCOME PORTFOLIO
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss)... $ (11,583) $ (13,658) $ 159,193 $ 375,239
Net realized gain on
investments (Note 2)......... 332,592 278,489 1,211,608 3,086,639
Net increase (decrease) in
unrealized appreciation of
investments.................. 188,277 392,152 1,067,041 (1,030,272)
---------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 509,286 656,983 2,437,842 2,431,606
---------- ---------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)........................... (23,485) (119,498) (365,229) (632,565)
Net realized gain from
investment transactions (Note
4)........................... (244,903) (342,882) (3,095,880) (2,642,564)
---------- ---------- ----------- -----------
Total dividends and
distributions to
shareholders............. (268,388) (462,380) (3,461,109) (3,275,129)
---------- ---------- ----------- -----------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares....................... 739,285 95,975 417,265 796,187
Proceeds from dividends and
distributions reinvested..... 268,388 462,380 3,461,109 3,275,129
Net asset value of shares
redeemed..................... (862,710) (442,713) (1,961,738) (4,147,192)
---------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from share
transactions..................... 144,963 115,642 1,916,636 (75,876)
---------- ---------- ----------- -----------
Net increase (decrease) in net
assets........................... 385,861 310,245 893,369 (919,399)
Net assets beginning of period..... 3,109,351 2,799,106 19,801,487 20,720,886
---------- ---------- ----------- -----------
Net assets end of period*.......... $3,495,212 $3,109,351 $20,694,856 $19,801,487
========== ========== =========== ===========
SHARES ISSUED AND REDEEMED:
Issued......................... 17,351 2,784 15,318 29,633
Issued in reinvestment of
dividends and
distributions................ 6,585 13,656 141,965 126,845
Redeemed....................... (20,694) (12,625) (74,580) (158,014)
---------- ---------- ----------- -----------
Net increase (decrease) in
shares outstanding....... 3,242 3,815 82,703 (1,536)
========== ========== =========== ===========
*Including undistributed net
investment income (loss) of:..... $ (35,068) $ 0 $ 159,192 $ 365,228
<CAPTION>
INTERMEDIATE TERM
BOND PORTFOLIO LONG TERM BOND PORTFOLIO
--------------------------- ---------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss)... $ 1,634,921 $ 2,897,928 $ 3,525,668 $ 5,178,086
Net realized gain on
investments (Note 2)......... 2,458 77,522 252,673 2,529,920
Net increase (decrease) in
unrealized appreciation of
investments.................. (1,988,140) 678,142 (12,012,100) 895,785
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations....................... (350,761) 3,653,592 (8,233,759) 8,603,791
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)........................... (2,897,928) (2,478,951) (5,430,340) (4,173,497)
Net realized gain from
investment transactions (Note
4)........................... 0 0 (2,277,660) (314,904)
------------ ------------ ------------ ------------
Total dividends and
distributions to
shareholders............. (2,897,928) (2,478,951) (7,708,000) (4,488,401)
------------ ------------ ------------ ------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares....................... 12,419,804 27,469,322 43,933,958 72,363,250
Proceeds from dividends and
distributions reinvested..... 2,897,928 2,478,951 7,708,000 4,488,401
Net asset value of shares
redeemed..................... (11,245,320) (15,808,455) (33,231,092) (33,363,015)
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from share
transactions..................... 4,072,412 14,139,818 18,410,866 43,488,636
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets........................... 823,723 15,314,459 2,469,107 47,604,026
Net assets beginning of period..... 59,531,453 44,216,994 122,956,790 75,352,764
------------ ------------ ------------ ------------
Net assets end of period*.......... $ 60,355,176 $ 59,531,453 $125,425,897 $122,956,790
============ ============ ============ ============
SHARES ISSUED AND REDEEMED:
Issued......................... 1,110,041 2,465,899 3,183,790 5,224,600
Issued in reinvestment of
dividends and
distributions................ 269,324 231,461 608,366 344,731
Redeemed....................... (1,010,875) (1,417,637) (2,458,457) (2,417,533)
------------ ------------ ------------ ------------
Net increase (decrease) in
shares outstanding....... 368,490 1,279,723 1,333,699 3,151,798
============ ============ ============ ============
*Including undistributed net
investment income (loss) of:..... $ 1,634,921 $ 2,897,928 $ 3,273,414 $ 5,178,086
</TABLE>
See notes to financial statements
115
<PAGE> 132
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
DIVERSIFIED PORTFOLIO PORTFOLIO MONEY MARKET PORTFOLIO
--------------------------- --------------------------- -------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income........... $ 3,626 $ 12,540 $ 1,443,710 $ 1,817,929 $ 7,065,882 $ 12,917,964
Net realized gain on investments
(Note 2)...................... 315,304 406,579 0 12,868 0 0
Net increase (decrease) in
unrealized appreciation of
investments................... 149,494 234,702 (1,659,567) 449,812 0 0
---------- ---------- ----------- ------------ ------------- ---------------
Net increase (decrease) in net
assets resulting from
operations........................ 468,424 653,821 (215,857) 2,280,609 7,065,882 12,917,964
---------- ---------- ----------- ------------ ------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (Note
4)............................ (63,557) (233,109) (1,827,920) (1,106,347) (7,065,882) (12,917,964)
Net realized gain from
investment transactions (Note
4)............................ (360,297) (468,435) (1,135) 0 0 0
---------- ---------- ----------- ------------ ------------- ---------------
Total dividends and
distributions to
shareholders............. (423,854) (701,544) (1,829,055) (1,106,347) (7,065,882) (12,917,964)
---------- ---------- ----------- ------------ ------------- ---------------
FROM SHARE TRANSACTIONS:
Proceeds from the issuance of
shares........................ 242,637 200,875 19,685,933 41,828,223 304,853,071 1,317,395,361
Proceeds from dividends and
distributions reinvested...... 423,854 701,544 1,829,055 1,106,347 7,065,882 12,917,964
Net asset value of shares
redeemed...................... (404,920) (804,465) (14,888,381) (14,559,912) (383,287,118) (1,139,178,202)
---------- ---------- ----------- ------------ ------------- ---------------
Net increase (decrease) in net
assets resulting from share
transactions...................... 261,571 97,954 6,626,607 28,374,658 (71,368,165) 191,135,123
---------- ---------- ----------- ------------ ------------- ---------------
Net increase (decrease) in net
assets............................ 306,141 50,231 4,581,695 29,548,920 (71,368,165) 191,135,123
Net assets beginning of period...... 3,279,620 3,229,389 54,614,813 25,065,893 349,421,360 158,286,237
---------- ---------- ----------- ------------ ------------- ---------------
Net assets end of period*........... $3,585,761 $3,279,620 $59,196,508 $ 54,614,813 $ 278,053,195 $ 349,421,360
========== ========== =========== ============ ============= ===============
SHARES ISSUED AND REDEEMED:
Issued.......................... 11,222 10,555 1,772,236 3,806,065 304,853,071 1,317,395,361
Issued in reinvestment of
dividends and distributions... 21,246 39,703 169,044 104,570 7,065,882 12,917,964
Redeemed........................ (19,431) (42,265) (1,350,957) (1,323,593) (383,287,118) (1,139,178,202)
---------- ---------- ----------- ------------ ------------- ---------------
Net increase (decrease) in
shares outstanding....... 13,037 7,993 590,323 2,587,042 (71,368,165) 191,135,123
========== ========== =========== ============ ============= ===============
* Including undistributed net
investment income (loss) of: $ (47,391) $ 12,540 $ 1,433,719 $ 1,817,929 $ 0 $ 0
</TABLE>
See notes to financial statements.
116
<PAGE> 133
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
The MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized
on December 14, 1984, is composed of seven different portfolios that are, in
effect, separate investment funds: the Equity Growth Portfolio, the Equity
Income Portfolio, the Intermediate Term Bond Portfolio, the Long Term Bond
Portfolio, the Diversified Portfolio, the Government Securities Portfolio, and
the Money Market Portfolio. The Fund issues a separate class of capital stock
for each portfolio. Each share of capital stock issued with respect to a
portfolio will have a pro-rata interest in the assets of that portfolio and will
have no interest in the assets of any other portfolio. Each portfolio bears its
own liabilities and also its proportionate share of the general liabilities of
the Fund. The Fund is registered under the Investment Company Act of 1940 (the
"1940 Act") as an open-end, diversified, management investment company. This
registration does not imply any supervision by the Securities and Exchange
Commission over the Fund's management.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Portfolio Valuations:
Short-term securities with 61 days or more to maturity at time of purchase
are valued at market through the 61st day prior to maturity, based on quotations
obtained from market makers or other appropriate sources; thereafter, any
unrealized appreciation or depreciation existing on the 61st day is amortized on
a straight-line basis over the remaining number of days to maturity. Short-term
securities with 60 days or less to maturity at time of purchase are valued at
amortized cost. The amortized cost of a security is determined by valuing it at
original cost and thereafter amortizing any discount or premium at a constant
rate until maturity. Securities in the Money Market Portfolio are valued at
amortized cost.
Common stocks traded on national securities exchanges are valued at the
last sales price as of the close of the New York Stock Exchange or at the last
bid price for over-the-counter securities.
Bonds are valued at the last available price provided by an independent
pricing service for securities traded on a national securities exchange. Bonds
that are listed on a national securities exchange but are not traded and bonds
that are regularly traded in the over-the-counter market are valued at the mean
of the last available bid and asked prices provided by an independent pricing
service.
Original issue discounts on investments purchased are amortized over their
respective lives using the yield-to-maturity method.
All other securities, when held by the Fund, including any restricted
securities, are valued at their fair value as determined in good faith by the
Board of Directors. As of June 30, 1999, 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
117
<PAGE> 134
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
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. For the six months ended June 30, 1999,
the fees incurred by the Fund were $1,304,241. 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 six months ended June 30, 1999, amounted to $21,492.
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 Income Portfolio
increased undistributed realized gains by $10,010 and decrease undistributed net
investment income by $10,010. These differences are primarily due to return of
capital distribution received on investments.
118
<PAGE> 135
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 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 Flexible Premium Variable Universal Life Insurance Contracts; to MONY
Variable Account L to fund benefits under Flexible Premium Variable Life
Insurance Contracts and Variable Universal Life Insurance Contracts; to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option Contracts; and to MONY
America Variable Account A and MONY Variable Account A to fund benefits under
Flexible Payment Variable Annuity Contracts issued by those companies. Shares of
the Fund are also sold to MONY for allocation to the Keynote Series Account
("Keynote") to fund benefits under Individual Annuity Plans issued by MONY.
6. FEDERAL INCOME TAX-CAPITAL LOSS CARRYFORWARD
At June 30, 1999, the following portfolios of the Fund have capital loss
carryforwards available to offset future capital gains, if any, for federal
income tax purposes:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EXPIRATION DATE
--------- ------ ---------------
<S> <C> <C>
Intermediate Term Bond...................................... $ 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 six months ended June 30,
1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C> <C>
Equity Growth Portfolio................. Common Stock $ 554,980 $ 715,752
Equity Income Portfolio................. Common Stock 2,502,045 3,980,792
Intermediate Term Bond Portfolio........ U.S. Government Obligations 10,248,945 8,430,070
Corporate Bonds 6,008,538 2,989,660
Long Term Bond Portfolio................ U.S. Government Obligations 28,370,021 14,445,551
Corporate Bonds 12,946,491 3,705,027
Diversified Portfolio................... Common Stock 500,567 644,100
Government Securities Portfolio......... U.S. Government Obligations 18,541,458 585,286
</TABLE>
119
<PAGE> 136
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 38.20 $ 36.08 $ 30.37 $ 25.11 $ 20.59 $ 20.70
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations
Net investment income (loss)............. (0.11) 1.50 0.11 0.96 0.39 0.36
Net gains on investments (both realized
and unrealized)........................ 6.61 6.88 8.42 4.30 5.90 0.09
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations... 6.50 8.38 8.53 5.26 6.29 0.45
---------- ---------- ---------- ---------- ---------- ----------
Less distributions
Dividends (from net investment income)... (0.30) (1.62) (0.96) 0.00 (0.39) (0.36)
Distributions (from realized capital
gains)................................. (3.10) (4.64) (1.86) 0.00 (1.34) (0.20)
Distributions (from additional paid-in
capital)............................... 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in excess of realized
capital gain).......................... 0.00 0.00 0.00 0.00 (0.04) 0.00
---------- ---------- ---------- ---------- ---------- ----------
Total distributions................ (3.40) (6.26) (2.82) 0.00 (1.77) (0.56)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period............. $ 41.30 $ 38.20 $ 36.08 $ 30.37 $ 25.11 $ 20.59
========== ========== ========== ========== ========== ==========
Total return....................... 17.13% 25.46% 30.68% 20.95% 30.54% 2.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.................. $3,495,212 $3,109,351 $2,799,106 $2,154,669 $1,873,569 $1,556,536
Ratio of net investment income (loss) to
average net assets....................... (0.71%)+ (0.48%) 0.34% 0.62% 1.54% 2.11%
Ratio of expenses to average net assets.... 1.82%+ 1.93% 1.33% 1.22% 1.28% 0.53%
Portfolio turnover rate.................... 17.33% 38.46% 45.90% 44.17% 38.17% 55.09%
</TABLE>
- ---------------
+ Annualized
120
<PAGE> 137
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 25.95 $ 27.10 $ 23.44 $ 19.61 $ 15.53 $ 16.43
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.22 0.78 0.61 0.98 0.69 0.64
Net gains (losses) on investments
(both realized and unrealized).... 3.11 2.62 5.96 2.89 4.45 (0.51)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations...................... 3.33 3.40 6.57 3.87 5.14 0.13
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)........................... (0.51) (0.88) (1.00) (0.04) (0.65) (0.64)
Distributions (from realized capital
gains)............................ (4.30) (3.67) (1.91) 0.00 (0.41) (0.39)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............... (4.81) (4.55) (2.91) (0.04) (1.06) (1.03)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period........ $ 24.47 $ 25.95 $ 27.10 $ 23.44 $ 19.61 $ 15.53
=========== =========== =========== =========== =========== ===========
Total return...................... 12.89% 12.63% 31.26% 19.76% 33.12% 0.78%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $20,694,856 $19,801,487 $20,720,886 $18,572,347 $18,091,035 $16,204,925
Ratio of net investment income to
average net assets.................. 1.60%+ 1.88% 2.20% 2.79% 3.54% 3.53%
Ratio of expenses to average net
assets.............................. 0.74%+ 0.76% 0.59% 0.55% 0.56% 0.48%
Portfolio turnover rate............... 12.71% 27.71% 29.32% 29.37% 26.80% 32.48%
</TABLE>
- ---------------
+ Annualized
121
<PAGE> 138
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 11.33 $ 11.12 $ 10.96 $ 10.57 $ 9.75 $ 10.51
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.27 0.51 0.63 0.62 0.63 0.60
Net gains (losses) on investments
(both realized and unrealized).... (0.34) 0.28 0.16 (0.23) 0.82 (0.76)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations...................... (0.07) 0.79 0.79 0.39 1.45 (0.16)
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)........................... (0.53) (0.58) (0.63) 0.00 (0.63) (0.60)
Distributions (from realized capital
gains)............................ 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (from additional
paid-in capital).................. 0.00 0.00 0.00 0.00 0.00 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............... (0.53) (0.58) (0.63) 0.00 (0.63) (0.60)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period........ $ 10.73 $ 11.33 $ 11.12 $ 10.96 $ 10.57 $ 9.75
=========== =========== =========== =========== =========== ===========
Total return...................... (.60%) 7.44% 7.70% 3.69% 14.82% (1.52%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............. $60,355,176 $59,531,453 $44,216,994 $40,045,253 $37,519,833 $32,283,693
Ratio of net investment income to
average net assets.................. 5.45%+ 5.61% 5.98% 5.88% 6.10% 5.66%
Ratio of expenses to average net
assets.............................. 0.59%+ 0.62% 0.51% 0.48% 0.49% 0.52%
Portfolio turnover rate............... 19.65% 17.56% 79.25% 33.59% 32.07% 25.41%
</TABLE>
- ---------------
+ Annualized
122
<PAGE> 139
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ------------ ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 14.17 $ 13.64 $ 12.84 $ 12.88 $ 10.47 $ 12.05
------------ ------------ ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.29 0.56 0.76 0.79 0.74 0.84
Net gains (losses) on investments
(both realized and
unrealized)..................... (1.14) 0.75 0.83 (0.83) 2.41 (1.58)
------------ ------------ ----------- ----------- ----------- -----------
Total from investment
operations.................... (0.85) 1.31 1.59 (0.04) 3.15 (0.74)
------------ ------------ ----------- ----------- ----------- -----------
Less distributions
Dividends (from net investment
income)......................... (0.56) (0.72) (0.79) 0.00 (0.74) (0.84)
Distributions (from realized
capital gains).................. (0.23) (0.06) 0.00 0.00 0.00 0.00
Distributions (from additional
paid-in capital)................ 0.00 0.00 0.00 0.00 0.00 0.00
------------ ------------ ----------- ----------- ----------- -----------
Total distributions............. (0.79) (0.78) (0.79) 0.00 (0.74) (0.84)
------------ ------------ ----------- ----------- ----------- -----------
Net asset value, end of period...... $ 12.53 $ 14.17 $ 13.64 $ 12.84 $ 12.88 $ 10.47
============ ============ =========== =========== =========== ===========
Total return.................... (6.03%) 10.08% 13.44% (.31%) 30.04% (6.14%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period........... $125,425,897 $122,956,790 $75,352,764 $62,098,817 $62,017,889 $44,012,329
Ratio of net investment income to
average net assets................ 5.46%+ 5.50% 6.33% 6.40% 6.58% 6.45%
Ratio of expenses to average net
assets............................ 0.56%+ 0.58% 0.49% 0.46% 0.48% 0.49%
Portfolio turnover rate............. 15.05% 40.77% 37.08% 59.78% 79.45% 110.19%
</TABLE>
- ---------------
+ Annualized
123
<PAGE> 140
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 19.91 $ 20.61 $ 17.99 $ 15.72 $ 13.14 $ 13.47
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations
Net investment income.................... 0.06 1.41 0.34 0.36 0.43 0.38
Net gains (losses) on investments (both
realized and unrealized)............... 2.87 2.85 3.80 1.91 3.03 (0.24)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations....... 2.93 4.26 4.14 2.27 3.46 0.14
---------- ---------- ---------- ---------- ---------- ----------
Less distributions
Dividends (from net investment income)... (0.40) (1.65) (0.39) 0.00 (0.43) (0.38)
Distributions (from realized capital
gains)................................. (2.26) (3.31) (1.13) 0.00 (0.43) (0.09)
Distributions (in excess of realized
capital gain).......................... 0.00 0.00 0.00 0.00 (0.02) 0.00
---------- ---------- ---------- ---------- ---------- ----------
Total distributions.................... (2.66) (4.96) (1.52) 0.00 (0.88) (0.47)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period............. $ 20.18 $ 19.91 $ 20.61 $ 17.99 $ 15.72 $ 13.14
========== ========== ========== ========== ========== ==========
Total return........................... 14.87% 23.69% 24.97% 14.44% 26.32% 1.03%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.................. $3,585,761 $3,279,620 $3,229,389 $3,380,587 $3,272,075 $2,860,700
Ratio of net investment income to average
net assets............................... 0.21%+ 0.40% 1.43% 2.02% 2.68% 3.19%
Ratio of expenses to average net assets.... 1.76%+ 1.83% 1.10% 0.91% 0.95% 0.57%
Portfolio turnover rate.................... 15.19% 34.45% 32.58% 24.43% 27.69% 51.38%
</TABLE>
- ---------------
+ Annualized
124
<PAGE> 141
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ----------- ----------- ----------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 11.17 $ 10.89 $ 10.58 $ 10.21 $ 9.51 $ 9.72
----------- ----------- ----------- ----------- ---------- ----------
Income from investment operations
Net investment income................. 0.22 0.33 0.45 0.45 0.34 0.05
Net gains (losses) on investments
(both realized and unrealized)...... (0.26) 0.39 0.28 (0.08) 0.70 (0.21)
----------- ----------- ----------- ----------- ---------- ----------
Total from investment operations.... (0.04) 0.72 0.73 0.37 1.04 (0.16)
----------- ----------- ----------- ----------- ---------- ----------
Less distributions
Dividends (from net investment
income)............................. (0.33) (0.44) (0.42) 0.00 (0.34) (0.05)
Distributions (from realized capital
gains).............................. 0.00 0.00 0.00 0.00 (0.00)* 0.00
Distributions (in excess of realized
capital gains)...................... 0.00 0.00 0.00 0.00 (0.00) 0.00
----------- ----------- ----------- ----------- ---------- ----------
Total distributions................. (0.33) (0.44) (0.42) 0.00 (0.34) (0.05)
----------- ----------- ----------- ----------- ---------- ----------
Net asset value, end of period.......... $ 10.80 $ 11.17 $ 10.89 $ 10.58 $ 10.21 $ 9.51
=========== =========== =========== =========== ========== ==========
Total return........................ (.36%) 6.85% 7.18% 3.62% 10.89% (2.68%)++
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period............... $59,196,508 $54,614,813 $25,065,893 $16,383,300 $8,555,893 $1,204,231
Ratio of net investment income to
average net assets.................... 4.93%+ 5.10% 5.52% 5.59% 6.10% 5.43%++
Ratio of expenses to average net
assets................................ 0.59%+ 0.64% 0.56% 0.55% 0.74% 0.57%++
Portfolio turnover rate................. 1.36% 29.55% 19.14% 12.52% 0.28% 7.82%
</TABLE>
- ---------------
* Less than $.01 per share.
+ Annualized
++ Annualized since Portfolio was dormant from June 24, 1994 to November 18,
1994.
125
<PAGE> 142
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------ -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------ -----------
Income from investment operations
Net investment income.................. 0.03 0.05 0.05 0.05 0.05 0.04
Less distributions
Dividends (from net investment
income).............................. (0.03) (0.05) (0.05) (0.05) (0.05) (0.04)
------------ ------------ ------------ ------------ ------------ -----------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============ ===========
Total return..................... 2.28% 5.09% 5.15% 5.00% 5.50% 3.82%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period................ $278,053,195 $349,421,360 $158,286,237 $144,932,159 $110,366,978 $83,352,731
Ratio of net investment income to average
net assets............................. 4.57%+ 5.09% 5.11% 4.95% 5.30% 3.77%
Ratio of expenses to average net
assets................................. 0.45%+ 0.45% 0.46% 0.45% 0.46% 0.49%
</TABLE>
- ---------------
+ Annualized
126
<PAGE> 143
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
Robert H. Kramer 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
The 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>
127
<PAGE> 144
(This page intentionally left blank)
128
<PAGE> 145
ENTERPRISE ACCUMULATION TRUST
GROWTH PORTFOLIO
MONTAG & CALDWELL, INC.
ATLANTA, GEORGIA
Investment Management
Montag & Caldwell manages approximately $31 billion for institutional
clients, and its normal investment minimum is $40 million.
Investment Objective
The objective of the Enterprise Growth Portfolio is to seek capital
appreciation.
Investment Strategies
The Growth Portfolio invests primarily in U.S. common stocks. The "Growth
at a Reasonable Price" strategy employed by the Portfolio combines growth and
value style investing. This means that the Portfolio invests in the stocks of
companies with long-term earnings potential but which are currently selling at a
discount to their estimated long-term value. The Portfolio's equity selection
process is generally lower risk than a typical growth stock approach. Valuation
is the key selection criterion which makes the investment style risk averse.
Also emphasized are growth characteristics to identify companies whose shares
are attractively priced and may experience strong earnings growth relative to
other companies.
First Half 1999 Performance Review
After a strong gain in the first quarter of 1999, the Portfolio experienced
a moderate increase in value during the second quarter. During the first half of
the year, weakness in the shares of global consumer growth companies and
pharmaceutical holdings offset continued strength in technology positions.
Specifically, Coca-Cola, Gillette, and McDonald's struggled as improving
economic conditions in emerging markets have yet to translate into increased
demand for consumer goods. Montag took advantage of price weakness during this
time to add to the Portfolio's positions in Coca-Cola, Gillette, and Proctor &
Gamble. Investor enthusiasm for cyclical sectors, growing concerns over
potential legislative action to regulate drug prices, and a general rotation out
of the healthcare sector resulted in lower share prices for many attractive
companies. In response to this price movement, Montag added to their position in
Pfizer. With regard to technology holdings, improving sales and order trends
translated into significant price appreciation for the shares of
Hewlett-Packard, Solectron, and Tellabs.
Future Investment Strategy
The U.S. economy continues its march towards establishing a record for the
longest expansion in its history. Only the 106-month expansion of the 1960s is
longer in duration, and each day of growth after January 16, 2000, will mean new
records of achievement in U.S. economic history. While the U.S. economy's
fundamentals continue to be good, higher bond yields may offset the positive
effect on share prices of greater-than-forecasted corporate profits. Because the
major stock market indices are already at record valuation levels and investor
enthusiasm is quite high, the increase in bond yields, along with rising
short-term interest rates, temper our outlook for the second half of 1999. Also,
investors may become anxious as we head into the year 2000 ("Y2K"), creating
additional market volatility as the economy is moderately impacted by a build-up
and then draw-down of inventories around the turn of the century. Given these
developing trends, Montag believes it is appropriate to maintain some buying
reserves in the Portfolio. This will increase Montag's flexibility to navigate
better in more uncertain periods ahead and take advantage of attractive
opportunities.
Montag continues to favor the shares of consumer global growth companies,
well-positioned pharmaceutical and medical device companies and high-growth
technology enterprises that have staying power. While the Portfolio's consumer
global growth holdings were weak during the second quarter, Montag expects a
pick-up in earnings growth for these high-quality companies in the second half
of this year and solid earnings momentum thereafter. Research-driven
pharmaceutical companies may perform better in the period ahead as these stocks
offer an attractive combination of value and double-digit earnings growth
prospects. The outlook continues to be bright for the leading medical device
companies. Selected technology holdings remain attractive as global industry
conditions improve and the build-out of the Internet further stimulates product
demand.
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.
129
<PAGE> 146
ENTERPRISE ACCUMULATION TRUST
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 86.69% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES -- 1.63%
Interpublic Group of Companies
Inc. 21,800 $ 1,888,425
COMPUTER HARDWARE -- 9.41%
Cisco Systems Inc. (a) 25,200 1,625,400
EMC Corporation (a) 21,800 1,199,000
Hewlett-Packard Company 45,500 4,572,750
Intel Corporation 59,200 3,522,400
------------
10,919,550
COMPUTER SERVICES -- 4.87%
Electronic Data Systems
Corporation (New) 57,100 3,229,719
Solectron Corporation (a) 36,300 2,420,756
------------
5,650,475
COMPUTER SOFTWARE -- 5.82%
Electronic Arts Inc. (a) 35,400 1,920,450
Microsoft Corporation (a) 34,700 3,129,506
Oracle System Corporation (a) 45,800 1,700,325
------------
6,750,281
CONSUMER PRODUCTS -- 10.07%
Gillette Company 120,000 4,920,000
Newell Rubbermaid Inc. 34,200 1,590,300
Procter & Gamble Company 58,000 5,176,500
------------
11,686,800
ELECTRICAL EQUIPMENT -- 3.00%
General Electric Company 30,800 3,480,400
ENTERTAINMENT & LEISURE -- 3.51%
Carnival Corporation 35,200 1,707,200
Walt Disney Company 77,000 2,372,563
------------
4,079,763
FOOD & BEVERAGES &
TOBACCO -- 6.65%
Bestfoods 55,000 2,722,500
Coca-Cola Company 80,000 5,000,000
------------
7,722,500
HEALTH CARE -- 3.29%
Medtronic Inc. 49,000 3,815,875
HOTELS & RESTAURANTS -- 4.81%
Marriott International Inc.
(Class A) 60,000 2,242,500
McDonald's Corporation 81,000 3,346,313
------------
5,588,813
MEDICAL INSTRUMENTS -- 3.25%
Boston Scientific Corporation
(a) 85,800 3,769,838
MISC. FINANCIAL SERVICES -- 2.80%
American Express Company 25,000 3,253,125
MULTI-LINE INSURANCE -- 2.67%
American International Group
Inc. 26,500 3,102,156
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- ------------
<S> <C> <C>
PHARMACEUTICALS -- 15.54%
Bristol Myers Squibb Company 61,600 $ 4,338,950
Johnson & Johnson 50,700 4,968,600
Lilly (Eli) & Company 21,700 1,554,262
Merck & Company Inc. 22,800 1,687,200
Pfizer Inc. 50,000 5,487,500
------------
18,036,512
RETAIL -- 5.54%
Costco Companies Inc. (a) 13,500 1,080,844
Gap Inc. 55,050 2,773,143
Home Depot Inc. 40,000 2,577,500
------------
6,431,487
TELECOMMUNICATIONS -- 3.83%
MCI Worldcom Inc. (a) 26,300 2,263,444
Tellabs Inc. (a) 32,300 2,182,269
------------
4,445,713
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $96,160,075) 100,621,713
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 11.20%
- ----------------------------------------------------------------------
Ford Motor Credit Company
4.76% due 07/01/99 $6,000,000 6,000,000
Ford Motor Credit Company
5.26% due 07/06/99 7,000,000 6,994,886
------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $12,994,886) 12,994,886
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.93%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 07/01/99
Collateral: U.S. Treasury Bond
$4,495,000, $7.125% due
02/29/00
Value $4,760,900 4,560,000 4,560,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $4,560,000) 4,560,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $113,714,961) $118,176,599
OTHER ASSETS LESS LIABILITIES -- (1.82)% (2,112,024)
------------
NET ASSETS 100% $116,064,575
======================================================================
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
130
<PAGE> 147
ENTERPRISE ACCUMULATION TRUST
GROWTH AND INCOME PORTFOLIO
RETIREMENT SYSTEM INVESTORS INC.
NEW YORK, NEW YORK
Investment Management
Retirement System Investors Inc. ("RSI") manages approximately $729 million
for all of its clients.
Investment Objective
The objective of the Enterprise Growth and Income Portfolio is a total
return through capital appreciation with income as a secondary consideration.
Investment Strategies
The Growth and Income Portfolio invests primarily in U.S. common stocks of
large capitalization companies. The Portfolio selects stocks that will
appreciate in value, seeking to take advantage of temporary stock price
inefficiencies, which may be caused by market participants focusing heavily on
short-terms developments. In selecting stocks for the Portfolio, the Portfolio
Manager employs a "value-oriented" strategy. This means that the Portfolio
Manager attempts to identify stocks of companies that have greater value than is
recognized by the market generally. The Portfolio Manager considers a number of
factors, such as sales, growth and profitability prospects for the economic
sector and markets in which the company operates and sells its products and
services, the company's stock market price, earnings level and projected
earnings growth rate. The Portfolio Manager also considers current and projected
dividend yields. The Portfolio Manager compares this information to that of
other companies in determining relative value and dividend potential.
First Half 1999 Performance Review
For the six months ended June 30, 1999, the Portfolio's overweightings in
high performance groups such as technology, basic materials and capital goods
sectors and underweightings in sub-par groups such as consumer staples,
healthcare and utilities helped results. The standout performers were Safeguard
Scientifics (up 130 percent), Tiffany (up 86 percent), Nortel Networks (up 74
percent), Alcoa (up 67 percent). The biggest disappointments were Cadence Design
Systems, Philip Morris, Potash, Sterling Commerce, Lockheed Martin, Fannie Mae
and Washington Mutual.
Future Investment Strategy
RSI visualizes a pickup in earnings growth -- led by productivity gains,
improving profit margins and recovery in foreign economies -- in the latter half
of 1999 with the domestic economy continuing to grow at a satisfactory pace.
However, higher interest rates could constrain market valuations and upset the
economy, and Y2K liquidity concerns could raise volatility levels.
Regarding stock selection, RSI expects significant variances of individual
returns within sectors following the rotational shift out of a narrow group of
growth stocks into a broader group of economically sensitive and other value
stocks, which began in mid-April.
An important strategy for RSI is keeping to discipline, focusing on
relative value regardless of the sector. RSI will be opportunistic with respect
to seeking out bargains in both growth and value stocks consistent with the
current mix of existing holdings. This is within the context of expecting more
value stocks to surface as attractive assuming earnings growth accelerates.
Conversely, RSI will be more agnostic about growth issues, generally given the
risk that their valuations may become compressed by higher interest rates and
the emergence of more competitive earnings opportunities elsewhere.
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> 148
ENTERPRISE ACCUMULATION TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 73.17% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 0.55%
AlliedSignal Inc. 2,600 $ 163,800
Lockheed Martin Corporation 250 9,313
-----------
173,113
BANKING -- 0.36%
Chase Manhattan Corporation 1,300 112,613
BROADCASTING -- 1.94%
Time Warner Inc. 8,270 607,845
BUILDING & CONSTRUCTION -- 4.58%
Armstrong World Industries Inc. 1,200 69,375
Martin Marietta Materials Inc. 6,825 402,675
Southdown Inc. 14,975 962,144
-----------
1,434,194
CHEMICALS -- 0.05%
Du Pont (E. I.) De Nemours &
Company 220 15,029
COMPUTER HARDWARE -- 9.54%
Cisco Systems Inc. (a) 360 23,220
Dallas Semiconductor Corporation 16,870 851,935
EMC Corporation (a) 4,500 247,500
IBM 8,760 1,132,230
Intel Corporation 100 5,950
Xerox Corporation 12,300 726,469
-----------
2,987,304
COMPUTER SERVICES -- 1.31%
Comverse Technology Inc. (a) 300 22,650
Safeguard Scientifics Inc. 6,000 372,000
Sun Microsystems Inc. (a) 220 15,152
-----------
409,802
COMPUTER SOFTWARE -- 4.12%
BMC Software Inc. (a) 12,750 688,500
Cadence Design Systems Inc. (a) 10,700 136,425
Sterling Commerce Inc. (a) 12,765 465,922
-----------
1,290,847
CONSUMER PRODUCTS -- 3.27%
Honeywell Inc. 4,500 521,438
Kimberly Clark Corporation 8,600 490,200
Mattel Inc. 492 13,007
-----------
1,024,645
CRUDE & PETROLEUM -- 3.66%
BP Amoco (ADR) 150 16,275
Mobil Corporation 2,850 282,150
Royal Dutch Petroleum (ADR) 1,045 62,961
Texaco Inc. 12,575 785,938
-----------
1,147,324
ELECTRICAL EQUIPMENT -- 3.30%
Emerson Electric Company 16,440 1,033,665
FINANCE -- 0.90%
Citigroup, Inc. 5,950 282,625
FOOD & BEVERAGES & TOBACCO -- 0.43%
Philip Morris Companies Inc. 3,340 134,226
LIFE INSURANCE -- 0.65%
American General Corporation 2,700 203,513
MACHINERY -- 3.70%
Ingersoll Rand Company 16,800 1,085,700
Snap-On Inc. 2,050 74,184
-----------
1,159,884
MANUFACTURING -- 0.47%
Milacron Inc. 8,000 148,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
METALS & MINING -- 2.68%
Alcoa Inc. 13,450 $ 832,218
Potash Corporation Saskatchewan
Inc. 125 6,469
-----------
838,687
MULTI-LINE INSURANCE -- 0.00%
American International Group Inc. 10 1,171
PROPERTY-CASUALTY
INSURANCE -- 0.65%
Allstate Corporation 5,700 204,487
PHARMACEUTICALS -- 5.03%
Bristol Myers Squibb Company 8,160 574,770
Elan Corporation (ADR) (a) 12,000 333,000
Johnson & Johnson 1,765 172,970
Merck & Company Inc. 6,370 471,380
Pfizer Inc. 220 24,145
-----------
1,576,265
RETAIL -- 8.60%
CVS Corporation 14,200 720,650
Federated Department Stores
Inc.(a) 8,300 439,381
Safeway Inc. (a) 30,500 1,509,750
Tiffany & Company 250 24,125
-----------
2,693,906
SAVINGS AND LOAN -- 7.37%
Federal National Mortgage
Association 19,800 1,353,825
Washington Mutual Inc. 26,950 953,356
-----------
2,307,181
TELECOMMUNICATIONS -- 7.00%
Lucent Technologies Inc. 430 28,998
Nortel Networks Corp 16,370 1,421,121
SBC Communications Inc. 12,795 742,110
-----------
2,192,229
TRANSPORTATION -- 3.01%
FDX Corporation (a) 17,350 941,237
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $20,352,838) 22,919,792
- ----------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.16%
MISC. FINANCIAL SERVICES -- 1.16%
Kmart Financing 6,200 362,700
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $359,672) 362,700
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 25.63%
- ----------------------------------------------------------------------
Alabama Power Company, 5.30% due
07/09/99 $1,500,000 1,498,233
General Electric Capital
Corporation, 5.08% due 07/07/99 1,000,000 999,153
Kansas City Power & Light
Company, 5.20% due 07/01/99 1,600,000 1,600,000
Lucent Technologies Inc., 5.00%
due 07/01/99 335,000 335,000
Mobil Corporation, 5.12% due
07/06/99 1,000,000 999,289
Orange & Rockland Utilities
Incorporated, 5.25% due
07/08/99 1,300,000 1,298,673
Potomac Electric Power Company,
5.30% due 07/07/99 1,300,000 1,298,852
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $8,029,200) 8,029,200
- ----------------------------------------------------------------------
</TABLE>
132
<PAGE> 149
ENTERPRISE ACCUMULATION TRUST
GROWTH AND INCOME PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
REPURCHASE AGREEMENT -- 0.53%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25% due
07/01/99
Collateral: U.S. Treasury Bond,
$180,000, 3.625% due 04/15/28
Value $177,421 $ 165,000 $ 165,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $165,000) 165,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $28,906,710) $31,476,692
OTHER ASSETS LESS LIABILITIES -- (0.49)% (153,241)
-----------
NET ASSETS 100% $31,323,451
======================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
133
<PAGE> 150
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 the Equity Portfolio since inception. Oppenheimer Capital
manages approximately $60 billion for institutional clients, and its normal
investment minimum is $20 million.
Investment Objective
The objective of the Enterprise Equity Portfolio is long-term capital
appreciation.
Investment Strategies
The Equity Portfolio invests primarily in U.S. common stocks of companies
that meet the Portfolio Manager's criteria of high return on investment capital,
strong positions within their industries, sound financial fundamentals and
management committed to shareholder interests. The Portfolio Manager selects
companies with one or more of the following characteristics: substantial and
growing discretionary cash flow, strong shareholder value-oriented management,
valuable consumer or commercial franchises, high return on capital, favorable
price to intrinsic value, and undervalued assets. The Portfolio Manager also
imposes a strict sell discipline to sell the stock once it rises close to the
target price established by the Portfolio Manager.
First Half 1999 Performance Review
Value stocks came back to life in the first half of 1999. Value stocks
include those judged to be trading at market prices well below the inherent
value of the business, while growth stocks include those believed to have
excellent long-term earnings growth prospects. After an extended period in which
stock market gains were driven by a limited number of technology and large-cap
growth issues, market leadership broadened to include undervalued stocks with
strong business fundamentals of the type owned in the Portfolio.
Some of the holdings that contributed to the Portfolio's performance
included Computer Associates International, Inc., Rockwell International Corp,
AlliedSignal, Inc., Motorola, Inc. and Wells Fargo & Co.
OpCap continues to find quality stocks that meet strict value criteria.
Purchases of these included the common stocks of Cadence Design Systems, Inc.,
Chancellor Media Corp, Emerson Electric Company, Monsanto Company, News Corp.
Ltd., Raytheon Company, Walt Disney Company and Waste Management, Inc.
Portfolio sales included positions in AlliedSignal, Inc., Champion
International Corp., International Flavours & Fragrances, Inc. and Tenet
Healthcare Corp.
Future Investment Strategy
Despite their gains in the second quarter, the types of value stocks in
which OpCap invests continue to trade at a significant discount to large-cap
growth stocks and the market in general. OpCap believes this may bode well for
the Portfolio's value style in the months ahead.
OpCap continues to look for -- and find -- great companies with strong,
sustainable cash flows, high competitive barriers, and rational managements with
proven track records who are dedicated to shareholder value.
OpCap believes its long-term perspective and emphasis on buying superior
undervalued businesses provide a competitive advantage as the market moves away
from highly priced growth stocks toward a renewed recognition of the enduring
value of a company's earnings, cash flow and competitiveness.
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> 151
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 93.36% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 2.29%
Omnicom Group Inc. 190,000 $ 15,200,000
AEROSPACE -- 4.48%
AlliedSignal Inc. 43,840 2,761,920
General Dynamics Corporation 220,000 15,070,000
Raytheon Company (Class A) 58,400 4,022,300
Raytheon Company (Class B) 111,600 7,853,850
------------
29,708,070
BANKING -- 5.48%
BankBoston Corporation 332,000 16,973,500
Wells Fargo & Company 453,620 19,392,255
------------
36,365,755
BROADCASTING -- 2.38%
Chancellor Media Corporation (a) 200,000 11,025,000
News Corporation Ltd. (ADR) 150,000 4,734,375
------------
15,759,375
CHEMICALS -- 3.34%
Du Pont (E. I.) De Nemours &
Company 220,000 15,028,750
Monsanto Company 180,000 7,098,750
------------
22,127,500
COMPUTER HARDWARE -- 1.46%
Compaq Computer Corporation 410,000 9,711,875
COMPUTER SOFTWARE -- 5.06%
Cadence Design Systems Inc. (a) 300,000 3,825,000
Computer Associates
International Inc. 540,000 29,700,000
------------
33,525,000
CONGLOMERATES -- 5.92%
Minnesota Mining & Manufacturing
Company 215,000 18,691,563
Textron Inc. 250,000 20,578,125
------------
39,269,688
CONSUMER PRODUCTS -- 0.62%
Mattel Inc. 156,000 4,124,250
DRUGS & MEDICAL PRODUCTS -- 1.14%
Becton, Dickinson & Company 252,316 7,569,480
ELECTRICAL EQUIPMENT -- 1.83%
Avnet Inc. 139,000 6,463,500
Emerson Electric Company 90,000 5,658,750
------------
12,122,250
ELECTRONICS -- 2.02%
Rockwell International
Corporation 220,000 13,365,000
ENTERTAINMENT & LEISURE -- 2.62%
Carnival Corporation 206,000 9,991,000
Walt Disney Company 240,000 7,395,000
------------
17,386,000
FINANCE -- 5.09%
Citigroup Inc. 411,540 19,548,150
Household International Inc. 300,000 14,212,500
------------
33,760,650
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
FOOD & BEVERAGES & TOBACCO -- 2.96%
Diageo (ADR) 176,384 $ 7,584,512
Heinz (H. J.) Company 240,000 12,030,000
------------
19,614,512
HOTELS & RESTAURANTS -- 2.63%
McDonald's Corporation 422,000 17,433,875
INSURANCE -- 8.54%
ACE Ltd. 730,700 20,642,275
AFLAC Inc. 270,256 12,938,506
Everest Reinsurance Holdings
Inc. 480,000 15,660,000
RenaissanceRe Holdings Ltd. 200,000 7,400,000
------------
56,640,781
MACHINERY -- 4.71%
Caterpillar Inc. 241,000 14,460,000
Dover Corporation 480,000 16,800,000
------------
31,260,000
MANUFACTURING -- 2.18%
Avery Dennison Corporation 240,000 14,490,000
MISC. FINANCIAL SERVICES -- 6.53%
Conseco Inc. 536,152 16,319,126
Countrywide Credit Industries
Inc. 286,088 12,230,262
Freddie Mac 254,180 14,742,440
------------
43,291,828
MULTI-LINE INSURANCE -- 1.02%
American International Group
Inc. 57,627 6,745,961
PROPERTY-CASUALTY
INSURANCE -- 5.96%
Chubb Corporation 150,000 10,425,000
XL Capital Ltd. (Class A) 514,573 29,073,374
------------
39,498,374
PRINTING & PUBLISHING -- 2.01%
Donnelley (R. R.) & Sons Company 360,000 13,342,500
RETAIL -- 2.17%
May Department Stores Company 352,068 14,390,780
TELECOMMUNICATIONS -- 4.52%
Motorola Inc. 170,000 16,107,500
Sprint Corporation 262,000 13,836,875
------------
29,944,375
TRANSPORTATION -- 3.97%
AMR Corporation (a) 281,000 19,178,250
Canadian Pacific Ltd. 300,000 7,143,750
------------
26,322,000
WASTE MANAGEMENT -- 2.43%
Waste Management Inc. 300,000 16,125,000
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $466,346,996) 619,094,879
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 2.82%
- ----------------------------------------------------------------------
Ford Motor Credit Company 5.10%
due 07/28/99 $18,767,000 18,695,216
------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $18,695,216) 18,695,216
- ----------------------------------------------------------------------
</TABLE>
135
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ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
SHORT-TERM GOVERNMENT SECURITIES -- 3.01%
- ----------------------------------------------------------------------
Federal National Mortgage
Association Discount Note,
4.83% due 07/21/99 $20,000,000 $ 19,946,333
------------
TOTAL SHORT-TERM GOVERNMENT SECURITIES
(IDENTIFIED COST $19,946,333) 19,946,333
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.73%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 07/01/99
Collateral: U.S. Treasury Note
$4,820,000, 7.125% due
02/29/00
Value $5,105,125 4,890,000 4,890,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $4,890,000) 4,890,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $509,878,545) $662,626,428
OTHER ASSETS LESS LIABILITIES -- 0.08% 512,748
------------
NET ASSETS 100% $663,139,176
======================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
136
<PAGE> 153
ENTERPRISE ACCUMULATION TRUST
EQUITY INCOME PORTFOLIO
1740 ADVISERS, INC.
NEW YORK, NEW YORK
Investment Management
1740 Advisers manages more than $2 billion for institutional clients and
its normal investment minimum is $20 million.
Investment Objective
The objective of the Enterprise Equity Income Portfolio is to seek a
combination of growth and income to achieve an above-average and consistent
total return.
Investment Strategies
The Equity Income Portfolio invests primarily in dividend-paying U.S.
common stocks. The goal is capital appreciation combined with a high level of
current income. Dividend yield relative to the S&P 500 average is used as a
discipline and measure of value in selecting stocks for the Portfolio. To
qualify for a purchase, a stock's yield must be greater than the S&P 500's
average dividend yield. The stock must be sold within two quarters after its
dividend yield falls below that of the S&P average. The effect of this
discipline is that a stock will be sold if increases in its annual dividends do
not keep pace with increases in its market price.
First Half 1999 Performance Review
When the financial crisis hit world markets last year, investors responded
by moving into the biggest and best companies. The expectation was that in a
hostile and uncertain world the safest place to be was in the most financially
secure, most broadly diversified and highest growth stocks. As money poured in,
those stocks rose at the expense of the rest of the market; and the popular
averages, which were dominated by the large-cap growth names, outperformed
everything else.
Now with the world on the mend and the outlook for corporate profits
improving, the market has begun to broaden. During the second quarter this has
resulted in increased investor interest in economy-sensitive stocks and in
mid-cap and some smaller-cap names. Many of these stocks went through their own
bear market last year, declining while the popular averages rose. This year may
see the reverse of the past several years' pattern -- the large-cap dominated
averages underperform the average stock.
Future Investment Strategy
The Equity Income Portfolio has a substantial emphasis on the
economy-sensitive sectors. Cyclicals such as basic materials, capital spending
related and energy stocks represent value. They are relatively underowned, went
through bear market size declines last year and may experience an improving
earnings outlook. They suffered the most from the crisis and may benefit the
most from the ending of the crisis and the beginning of economic and financial
recovery.
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> 154
ENTERPRISE ACCUMULATION TRUST
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 92.63% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 2.44%
Northrop Grumman Corporation 2,000 $ 132,625
United Technologies Corporation 3,000 215,063
-----------
347,688
AUTOMOTIVE -- 2.52%
Delphi Automotive Systems Corp. 1,100 20,419
Ford Motor Company 3,300 186,244
General Motors Corporation 2,300 151,800
-----------
358,463
BANKING -- 8.88%
Bank of America Corporation 2,500 183,281
Bank of New York Company Inc. 3,900 143,081
BankBoston Corporation 3,000 153,375
Chase Manhattan Corporation 2,200 190,575
Fleet Financial Group Inc. 2,600 115,375
J.P. Morgan & Company Inc. 1,400 196,700
Mellon Bank Corporation 4,000 145,500
Wells Fargo & Company 3,200 136,800
-----------
1,264,687
CHEMICALS -- 3.31%
Dow Chemical Company 1,500 190,312
Du Pont (E. I.) De Nemours &
Company 2,600 177,613
Rohm & Haas Company 2,400 102,900
-----------
470,825
COMPUTER HARDWARE -- 1.74%
Xerox Corporation 4,200 248,063
CONGLOMERATES -- 2.13%
Minnesota Mining & Manufacturing
Company 1,600 139,100
Textron Inc. 2,000 164,625
-----------
303,725
CONSUMER DURABLES -- 0.87%
Dana Corporation 2,700 124,369
CONSUMER NON-DURABLES -- 1.99%
Avon Products Inc. 5,100 283,050
CONSUMER PRODUCTS -- 2.40%
Colgate Palmolive Company 1,700 167,875
Honeywell Inc. 1,500 173,813
-----------
341,688
CRUDE & PETROLEUM -- 6.35%
BP Amoco (ADR) 1,700 184,450
Chevron Corporation 1,700 161,819
Exxon Corporation 2,800 215,950
Mobil Corporation 2,000 198,000
Texaco Inc. 2,300 143,750
-----------
903,969
ELECTRICAL EQUIPMENT -- 4.16%
Emerson Electric Company 2,600 163,475
General Electric Company 3,800 429,400
-----------
592,875
ENERGY -- 7.66%
Atlantic Richfield Company 1,400 116,988
Consolidated Natural Gas Company 2,800 170,100
Duke Energy Company 3,000 163,125
El Paso Energy Corporation 4,200 147,787
Enron Corporation 2,700 220,725
Williams Companies Inc. 6,400 272,400
-----------
1,091,125
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
FOOD & BEVERAGES & TOBACCO -- 0.68%
Philip Morris Companies Inc. 2,400 $ 96,450
INSURANCE -- 1.50%
Cigna Corporation 2,400 213,600
MACHINERY -- 3.92%
Caterpillar Inc. 3,000 180,000
Deere & Company 3,700 146,612
Pitney Bowes Inc. 3,600 231,300
-----------
557,912
MANUFACTURING -- 1.03%
Eaton Corporation 1,600 147,200
METALS & MINING -- 1.04%
Alcoa Inc. 2,400 148,500
MISC. FINANCIAL SERVICES -- 1.50%
Citigroup Inc. 4,500 213,750
MULTI-LINE INSURANCE -- 1.40%
Lincoln National Corporation 3,800 198,788
OIL SERVICES -- 3.62%
Baker Hughes Inc. 3,400 113,900
Diamond Offshore Drilling Inc. 3,800 107,825
Halliburton Company 3,100 140,275
Schlumberger Ltd. 2,400 152,850
-----------
514,850
PROPERTY-CASUALTY
INSURANCE -- 0.98%
Chubb Corporation 2,000 139,000
PAPER & FOREST PRODUCTS -- 4.85%
Bowater Inc. 2,800 132,300
Georgia Pacific Corporation 4,500 213,187
International Paper Company 4,000 202,000
Temple-Inland Inc. 2,100 143,325
-----------
690,812
PHARMACEUTICALS -- 7.17%
American Home Products
Corporation 3,200 184,000
Baxter International Inc. 2,400 145,500
Bristol Myers Squibb Company 2,400 169,050
Merck & Company Inc. 2,600 192,400
Pharmacia & Upjohn Inc. 2,900 164,756
Smithkline Beecham (ADR) 2,500 165,156
-----------
1,020,862
PRINTING & PUBLISHING -- 1.02%
McGraw Hill Inc. 2,700 145,631
RAW MATERIALS -- 2.52%
Phelps Dodge Corporation 1,500 92,906
Reynolds Metals Company 1,700 100,300
Weyerhaeuser Company 2,400 165,000
-----------
358,206
REAL ESTATE -- 2.09%
Boston Properties Inc. 2,100 75,337
Crescent Real Estate Equities 3,300 78,375
Equity Office Properties Trust 3,000 76,875
Equity Residential Properties
Trust 1,500 67,594
-----------
298,181
SAVINGS AND LOAN -- 0.87%
Federal National Mortgage
Association 1,800 123,075
TECHNOLOGY -- 0.50%
Thomas & Betts Corporation 1,500 70,875
</TABLE>
138
<PAGE> 155
ENTERPRISE ACCUMULATION TRUST
EQUITY INCOME PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
TELECOMMUNICATIONS -- 10.21%
Ameritech Corporation 2,800 $ 205,800
AT & T Corporation 3,800 212,087
Bell Atlantic Corporation 2,900 189,587
BellSouth Corporation 3,900 182,813
GTE Corporation 2,200 166,650
SBC Communications Inc. 3,300 191,400
Sprint Corporation 3,100 163,719
U S West Inc. 2,400 141,000
-----------
1,453,056
UTILITIES -- 3.28%
Carolina Power & Light Company 2,900 124,156
CMS Energy Corporation 2,900 121,438
Edison International 4,200 112,350
FPL Group Inc. 2,000 109,250
-----------
467,194
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $12,596,917) 13,188,469
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.91%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25% due
07/01/99
Collateral: U.S. Treasury Note
$695,000; 6.125%, due 07/31/00
Value $734,848 $ 700,000 $ 700,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $700,000) 700,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $13,296,917) $13,888,469
OTHER ASSETS LESS LIABILITIES -- 2.46% 349,595
-----------
NET ASSETS 100% $14,238,064
======================================================================
</TABLE>
(ADR) American Depository Receipt.
See notes to financial statements.
139
<PAGE> 156
ENTERPRISE ACCUMULATION TRUST
CAPITAL APPRECIATION PORTFOLIO
PROVIDENT INVESTMENT COUNSEL, INC.
PASADENA, CALIFORNIA
Investment Management
Provident Investment Counsel manages approximately $18 billion for
institutional clients, and its usual investment minimum is $5 million.
Investment Objective
The objective of the Enterprise Capital Appreciation Portfolio is to seek
maximum capital appreciation.
Investment Strategies
The Capital Appreciation Portfolio invests in U.S. common stocks of
companies that demonstrate accelerating earnings momentum and consistently
strong financial characteristics. The Portfolio Manager's criteria for stock
selection include: (a) steadily increasing earnings; and (b) a three-year
performance record of sales, earnings, dividend growth, pretax margins, return
on equity and reinvestment rate which, in the aggregate, average 1.5 times the
average performance of the S&P 500 for the same period. The Portfolio Manager
selects stocks of small, medium and large capitalization companies in an attempt
to achieve an average capitalization of portfolio companies that is less than
the average capitalization of the S&P 500. The potential for maximum capital
appreciation is the basis for investment decisions; any income is incidental.
First Half 1999 Performance Review
A backdrop of vigorous economic growth and a nervous bond market caused
tremendous volatility in stock market sectors year-to-date. Thirty-year bond
yields increased from 5.12 percent at the end of December, 1998 to 6.14 percent
near the close of June, 1999. This rise punished the prices of high-PE stocks of
companies offering consistent earnings growth. Overall, the year thus far has
been positive for the growth averages, but less so than the extraordinary gains
of 1998.
The year (as measured by the Russell 1000 Growth Index) began on a
relatively good note but turned flat in April, took a fairly significant dip
during May and rebounded strongly in June. The Portfolio participated in the
June recovery, which was a reflection of growth stocks regaining their momentum
after being badly disadvantaged during April and May with rising interest rates
and a market rotation into cyclical stocks. The rotation was caused by the
perception that stronger than expected economic growth would, in turn, generate
better earnings growth for the economically sensitive stocks.
Future Investment Strategy
The shift favoring cyclical/value stocks, which began in April and
continued through May and early June, has abated. The key question is what
trends in place today will most affect returns for the balance of the year?
First, one of the most positive signs has been the broadening out of the market.
For the first time in years, asset class returns in the quarter were in keeping
with traditional risk/reward models, (i.e., the more risk you are willing to
assume, the higher the returns would be). In the second quarter, small-cap
stocks (up 14.8 percent) outperformed mid-cap stocks (up 10.4 percent), which
outperformed large-cap stocks (up 3.9 percent), as measured by the Russell 2000
Growth, Russell Mid-Cap Growth, and the Russell 1000 Growth Indices. Also in the
second quarter, value stocks (up 10.8 percent) outperformed growth stocks (up
3.8 percent), as measured by the S&P 500 Barra Value and S&P 500 Barra Growth
Indices, as the better than expected economic growth and rising interests rates
corrected the valuation extremes at both ends of the market. Provident believes
the April/May stellar performance for cyclically oriented stocks represents a
broadening out of the market and not a major change in style leadership.
Provident remains committed to technology and consumer-oriented themes, but
the Portfolio has reduced its commitment to the health technology area,
particularly drug stocks. While Provident cut back on their drug holdings
earlier in the year, two short-term obstacles nonetheless have penalized
returns. The first is a drug pipeline that is less robust than at this time last
year; the second concerns pending Medicare and Medicaid reform. On the other
hand, the improved domestic and global economic backdrop does provide certain
companies new opportunities for earnings growth. For example, Provident
continues to look for new opportunities in telecommunications, where the
longer-term earnings growth outlook of many companies may be exceptional.
Finally, Provident believes the broadening of the market increases the
opportunity universe. Investors, less
140
<PAGE> 157
concerned about liquidity, are seeking out stocks with the best relative
attractiveness regardless of market capitalization. Provident will continue to
build the stock positions in the Portfolio where Provident thinks valuations are
particularly attractive.
The Portfolio's return for the balance of the year will depend on the level
of interest rates and the companies in the Portfolio maintaining their expected
growth rates. If inflation remains subdued, i.e., under 3 percent, and interest
rates remain in a reasonably narrow range around current levels, then the broad
market should do well and both growth and value strategies should benefit. The
challenge to growth stocks remains any sizeable increase in interest rates;
value stocks are going to need a meaningful acceleration in earnings to maintain
recent performance momentum. Provident believes the earnings power for cyclical
companies is less than robust. They recognize, also, that investors cannot
expect any further expansion in price/earnings ratios. Therefore, their
challenge and primary focus in the management of the Portfolio is to be
confident that the companies in the Portfolio continue to produce well above
average sales and earnings growth.
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.
141
<PAGE> 158
ENTERPRISE ACCUMULATION TRUST
CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 87.59% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.16%
Outdoor Systems Inc. (a) 4,000 $ 146,000
BANKING -- 0.55%
FIRSTAR Corporation 2,500 70,000
BROADCASTING -- 1.45%
Clear Channel Communications (a) 1,800 124,088
Infinity Broadcasting Corporation
(Class A) (a) 2,000 59,500
-----------
183,588
BUSINESS SERVICES -- 2.41%
Concord EFS Inc. (a) 4,000 169,250
CSG Systems International Inc.
(a) 1,500 39,281
Paychex Inc. 3,000 95,625
-----------
304,156
COMPUTER HARDWARE -- 4.48%
Dell Computer Corporation (a) 1,400 51,800
Electronics for Imaging Inc. (a) 4,000 205,500
EMC Corporation (a) 2,000 110,000
Lexmark International Group Inc.
(Class A) (a) 3,000 198,187
-----------
565,487
COMPUTER SERVICES -- 11.55%
America Online Inc. (a) 1,000 110,500
Comverse Technology Inc. (a) 2,700 203,850
Fiserv Inc. (a) 4,000 125,250
Ixl Enterprises Incorporated 5,050 135,719
Solectron Corporation (a) 2,000 133,375
Sun Microsystems Inc. (a) 2,000 137,750
Sungard Data Systems Inc. (a) 1,500 51,750
Synopsys Inc. (a) 3,800 209,713
Unisys Corporation 9,000 350,437
-----------
1,458,344
COMPUTER SOFTWARE -- 3.51%
BMC Software Inc. (a) 2,000 108,000
Intuit Inc. (a) 2,000 180,250
Real Networks Inc. (a) 900 61,987
Siebel Systems Inc. (a) 1,400 92,925
-----------
443,162
CONSUMER DURABLES -- 1.08%
Harley Davidson Inc. 2,500 135,938
CONTAINERS/PACKAGING -- 2.39%
Ball Corporation 3,000 126,750
Sealed Air Corporation (New) 2,700 175,163
-----------
301,913
CRUDE & PETROLEUM -- 1.89%
Ensco International Inc. 12,000 239,250
ELECTRICAL EQUIPMENT -- 2.74%
Jabil Circuit Inc. (a) 4,500 203,062
Teradyne Incorporated (a) 2,000 143,500
-----------
346,562
ELECTRONICS -- 6.02%
Altera Corporation (a) 7,000 257,687
Gemstar International Group Ltd.
(a) 3,200 208,800
Tandy Corporation 6,000 293,250
-----------
759,737
ENERGY -- 2.96%
AES Corporation 3,400 197,625
Montana Power Company 2,500 176,250
-----------
373,875
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
ENTERTAINMENT & LEISURE -- 0.96%
Carnival Corporation 2,500 $ 121,250
FINANCE -- 6.37%
Associates First Capital
Corporation (Class A) 1,700 75,331
Capital One Financial Corporation 3,000 167,063
MBNA Corporation 6,000 183,750
Metris Companies Inc. 4,000 163,000
Providian Financial Corporation 2,300 215,050
-----------
804,194
HEALTH CARE -- 0.43%
Medtronic Inc. 700 54,513
HOTELS & RESTAURANTS -- 3.24%
Brinker International Inc. (a) 10,500 285,469
Ruby Tuesday Inc. 6,500 123,500
-----------
408,969
LIFE INSURANCE -- 0.34%
Reinsurance Group America Inc. 1,200 42,300
MANUFACTURING -- 1.50%
Tyco International Ltd. 2,000 189,500
MEDICAL INSTRUMENTS -- 2.99%
Guidant Corporation 1,500 77,156
VISX, Inc. (a) 3,800 300,913
-----------
378,069
MEDICAL SERVICES -- 1.40%
Ims Health Incorporated 1,600 50,000
Wellpoint Health Networks
Incorporated (a) 1,500 127,313
-----------
177,313
OIL SERVICES -- 2.81%
Baker Hughes Inc. 5,500 184,250
Nabors Industries Incorporated
(a) 7,000 171,062
-----------
355,312
PHARMACEUTICALS -- 0.42%
Schering Plough Corporation 1,000 53,000
RETAIL -- 10.76%
Abercrombie and Fitch Company
(Class A) (a) 1,400 67,200
Bed Bath & Beyond Inc. (a) 3,000 115,500
Costco Companies Inc. (a) 1,300 104,081
CVS Corporation 800 40,600
Dollar Tree Stores Inc. (a) 2,600 114,400
Family Dollar Stores Inc. 3,500 84,000
Kohl's Corporation (a) 1,500 115,782
Linens 'n Things Inc. (a) 2,000 87,500
Office Depot Inc. (a) 2,000 44,125
Safeway Inc. (a) 1,800 89,100
Staples Inc. (a) 2,300 71,156
Tiffany & Company 2,500 241,250
Tommy Hilfiger Corporation (a) 2,500 183,750
-----------
1,358,444
TECHNOLOGY -- 3.87%
Linear Technology Corporation 2,000 134,500
Network Appliance Inc. (a) 2,000 111,750
Uniphase Corporation (a) 500 83,000
Waters Corporation (a) 3,000 159,375
-----------
488,625
</TABLE>
142
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ENTERPRISE ACCUMULATION TRUST
CAPITAL APPRECIATION PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
TELECOMMUNICATIONS -- 8.64%
ADC Telecommunications Inc. (a) 3,500 $ 159,469
Alltel Corporation 1,500 107,250
Amdocs Ltd. (a) 6,500 147,875
Global TeleSystems Group Inc. (a) 3,000 243,000
Lucent Technologies Inc. 1,000 67,437
MCI Worldcom Inc. (a) 1,900 163,519
Tellabs Inc. (a) 3,000 202,687
-----------
1,091,237
WASTE MANAGEMENT -- 1.67%
Tetra Tech Inc. (a) 6,250 103,125
Waste Management Inc. 2,000 107,500
-----------
210,625
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $10,288,504) 11,061,363
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 9.50%
- ----------------------------------------------------------------------
American Express Credit
Corporation, 5.50% due 07/01/99 $600,000 600,000
Household Finance Corporation
5.55% due 07/01/99 600,000 600,000
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $1,200,000) 1,200,000
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.11%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25% due
07/01/99
Collateral: U.S. Treasury Bond
$155,000, 3.625%, due 04/15/28
Value $152,779 $140,000 $ 140,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $140,000) 140,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $11,628,504) $12,401,363
OTHER ASSETS LESS LIABILITIES -- 1.80% 226,882
-----------
NET ASSETS 100% $12,628,245
======================================================================
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
143
<PAGE> 160
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY GROWTH PORTFOLIO
WILLIAM D. WITTER, INC.
NEW YORK, NEW YORK
Investment Management
William D. Witter, Inc. manages approximately $1 billion in assets under
management and has a normal investment minimum for a separate account of $1
million.
Investment Objective
The objective of the Enterprise Small Company Growth Portfolio is to seek
capital appreciation.
Investment Strategies
The Small Company Growth Portfolio invests primarily in common stocks of
small capitalization companies with above-average growth characteristics that
are reasonably valued. The Portfolio Manager uses a disciplined approach in
evaluating growth companies. It relates the expected growth rate in earnings to
the price-earnings ratio of the stock. Generally, the Portfolio Manager will not
buy a stock if its price-earnings ratio exceeds its growth rate. By using this
valuation parameter the Portfolio Manager believes it moderates some of the
inherent volatility in the small capitalization sector of the market. Securities
will be sold when the Portfolio Manager believes the stock price exceeds the
valuation criteria, or when the stock appreciates to a point where it is
substantially over-weighted in the Portfolio, or when the company no longer
meets expectations. The Portfolio 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.
First Half 1999 Performance Review
Concerns about the slowdown in global economic growth, which intensified in
the summer of 1998, were still present in the first quarter of 1999. Investors
responded, in part, by continuing to concentrate their equity investments into
large, well-known, highly liquid issues. In the second quarter, as confidence
developed that an economic recovery in Asia was beginning, the willingness to
participate in the broader market increased.
The dramatic rise in the prices of Internet stocks in the first part of the
year led to a substantial increase in initial public offerings of
internet-related companies. By the second quarter, the demand for this type of
investment appeared to be satiated by supply. The extremely high valuation
levels of the group were also a factor in encouraging investors to look
elsewhere for opportunities.
While a number of observers had pointed out the historically low relative
valuations of small companies, in the second quarter an awareness developed of
the increase in investment banking activity in this group. By early April, the
number of mergers, acquisitions, and leveraged buyouts totaled 207, which
compared with an annual average of 162 for this decade, according to Merrill
Lynch Small Cap Research. This development is reminiscent of the 1980's when it
was more economical for companies to expand by buying another company's stock
than by building new facilities and expanding their own organizations.
The Portfolio benefited from the announcement of two investment banking
transactions. Amsted Industries offered to buy Varlen Corp. at $35. Varlen's
stock had been selling in the low-to mid-twenties prior to the announcement and
its management stated that the offer was inadequate. Additional negotiations are
proceeding and Varlen was at $40 1/2 at June 30, 1999. Maxxim Medical's
management, frustrated by their equity's price being $16 in spite of good
fundamental progress, offered to buy the whole company themselves at $26. The
stock finished the six months ended June 30, 1999 at $23 5/16.
Future Investment Strategy
The rise in long-term interest rates during the first six months,
particularly those related to the housing industry, may slow down the economy's
growth rate. This factor together with the strong currency may keep the
inflation rate at around 2 percent
144
<PAGE> 161
or lower. While valuation levels of large capitalization issues, in general, are
high, the price/earnings ratios relative to earnings growth rates of the smaller
company equities are still low. Witter believes that the sector should do well
over the next one to three years.
Accordingly, the Portfolio will continue to be fully invested and maintain
significant emphasis on cyclical growth companies such as those in the
semi-conductor equipment industry. It is also likely that more secular growth
issues such as those in the computer systems/software, health care, and business
services will be added.
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.
145
<PAGE> 162
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 91.47% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 2.69%
AAR Corporation 3,150 $ 71,466
Tristar Aerospace Company (a) 10,500 86,625
----------
158,091
BUSINESS SERVICES -- 16.22%
Analytical Surveys Inc. (a) 8,300 206,463
Charles River Associates Inc. (a) 8,900 223,056
Labor Ready Inc. (a) 6,500 211,250
Maximus Inc. (a) 4,500 129,375
On Assignment Inc. (a) 7,000 182,875
----------
953,019
COMPUTER HARDWARE -- 1.94%
Auspex Systems Inc. (a) 10,500 114,188
COMPUTER SERVICES -- 7.39%
Kronos Inc. (a) 4,125 187,687
National Computer Systems Inc. 7,300 246,375
----------
434,062
COMPUTER SOFTWARE -- 12.19%
Legato Systems Inc. (a) 4,030 232,733
Mapinfo Corporation (a) 9,000 171,000
Pervasive Software Inc. (a) 10,000 248,750
Verity Inc. (a) 1,175 63,670
----------
716,153
ELECTRONICS -- 11.38%
Applied Science & Technology Inc.
(a) 12,600 283,500
Cymer Inc. (a) 8,600 215,000
Veeco Instruments Inc. (a) 5,000 170,000
----------
668,500
FINANCE -- 1.17%
Doral Financial Corporation 4,000 69,000
INSURANCE -- 1.11%
Everest Reinsurance Holdings 2,000 65,250
MANUFACTURING -- 5.62%
Astropower Inc. (a) 6,640 116,200
Mueller Industries Inc. (a) 3,440 116,745
Varlen Corporation 2,400 97,200
----------
330,145
MEDICAL INSTRUMENTS -- 8.47%
Candela Corporation (a) 14,500 206,625
Cytyc Corporation (a) 9,900 193,050
Theragenics Corporation (a) 14,080 97,680
----------
497,355
MEDICAL SERVICES -- 3.25%
Maxxim Medical Inc. (a) 8,200 191,163
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
OIL SERVICES -- 0.36%
Atwood Oceanics Inc. (a) 685 $ 21,406
SECURITY & INVESTIGATION
SERVICES -- 0.61%
Barringer Technologies Inc. (a) 5,500 35,578
TECHNOLOGY -- 4.24%
Catalytica Inc. (a) 11,830 165,620
Flir Systems Inc. (a) 5,500 83,187
----------
248,807
TRANSPORTATION -- 13.20%
Alaska Air Group Inc. (a) 3,200 133,600
Amtran Inc. (a) 4,000 98,500
Atlas Air Inc. (a) 7,040 227,040
Ryanair Holdings (ADR) (a) 2,935 155,555
Sea Containers Ltd. (Class A) 4,800 161,100
----------
775,795
TRAVEL/ENTERTAINMENT/LEISURE -- 1.63%
Polaris Industries Inc. 2,200 95,700
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $4,624,992) 5,374,212
- ----------------------------------------------------------------------
U.S. TREASURY BILLS -- 3.39%
- ----------------------------------------------------------------------
U.S. Treasury Bill
4.405% due 07/22/99 $200,000 199,486
----------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $199,486) 199,486
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 3.83%
- ----------------------------------------------------------------------
Alcoa Inc.
5.75% due 07/01/99 225,000 225,000
----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $225,000) 225,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $5,049,478) $5,798,698
OTHER ASSETS LESS LIABILITIES -- 1.31% 76,889
----------
NET ASSETS 100% $5,875,587
======================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
146
<PAGE> 163
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
GABELLI ASSET MANAGEMENT COMPANY
RYE, NEW YORK
Investment Management
Gabelli Asset Management Company, which manages more than $9 billion for
institutional clients and whose normal investment minimum is $1 million became
manager of the Portfolio on June 1, 1996.
Investment Objective
The objective of the Enterprise Small Company Value Portfolio is to seek
maximum capital appreciation.
Investment Strategies
The Small Company Value Portfolio invests primarily in common stocks of
small capitalization companies that the Portfolio Manager believes are
undervalued -- that is, the stock's market price does not fully reflect the
company's value. The Portfolio Manager uses a proprietary research technique to
determine which stocks have a market price that is less than the "private market
value" or what an investor would pay for the company. The Portfolio Manager then
determines whether there is an emerging valuation catalyst that will focus
investor attention on the underlying assets of the company and increase the
market price. Smaller companies may be subject to a valuation catalyst such as
increased investor attention, takeover efforts or a change in management.
First Half 1999 Performance Review
The first six months of 1999 were a study in the psychology of small-cap
investors. While the first quarter tested their patience, the second quarter
rewarded it.
The level of merger and acquisition activity that Gabelli saw during 1998
continued unabated into 1999. The Portfolio's returns were enhanced by the
takeover of several holdings: Aeroquip Vickers, Hudson General, Calmat and Grand
Casinos, to name just a few. Going forward, Gabelli expects the deal activity to
accelerate as companies of all sizes race to acquire the much cheaper and
undervalued smaller sized companies.
Cable stocks contributed very nicely to the performance for the first six
months of the year. The industry has been involved in round after round of
consolidation as companies race to acquire more households, eyeballs and
bandwidth. Due to this consolidation, the stocks of cable companies which have
not yet been taken over have performed well during 1999. Rogers Communications
(up 82 percent) and Cablevision (up 39 percent) have been rumored to be the next
to go.
The telecommunications industry and more specifically the cellular industry
have been extremely hot during 1999. Omnipoint has increased 143 percent in the
Portfolio for the first half of 1999 as it received a cash and stock offer from
VoiceStream Wireless. As a result of this, the stocks of several cellular
companies have exploded on the upside: Aerial Communications (up 130 percent),
Price Communications (up 81 percent) and Telephone & Data Systems (up 63
percent) to name just a few.
Future Investment Strategy
Inflation reared its head in the second quarter of 1999. A jump in the
Consumer Price Index (CPI) in April rattled the bond and equity markets.
Inflation all but disappeared again in the May CPI numbers. The bond market
stabilized and stocks regained momentum. Despite the dueling data on inflation,
the Federal Reserve decided to err on the side of caution by hiking the Federal
Funds rate by 0.25 percent on June 30, in what Chairman Alan Greenspan
characterized as a "preemptive action" against inflation. This sparked the
current debate as to whether this single modest rate hike would be an effective
move against inflation or just the first in a series of steps that will
eventually weaken the economy and financial markets. Judging from the bond and
stock markets' slide in late June, the consensus appears to expect more Fed rate
hikes and higher interest rates going forward.
Gabelli is cautiously optimistic on inflation in the near future. The
inflationary threat comes partially from rising commodities prices, which are
recovering from severely depressed levels following the Asian economic meltdown,
and from the prospect of wage inflation in a fully employed America. Thus far,
technology-driven productivity gains have offset rising wages.
147
<PAGE> 164
Along with Federal Reserve Chairman Alan Greenspan, Gabelli is not sure how much
longer this can continue in an America with help wanted signs in an increasing
number of corporate windows. The American consumer continues to be the key to
economic growth here and abroad. Full employment, rising wages and a generous
stock market have been the drivers for consumer spending. If rising interest
rates discourage consumer spending, or Gabelli sees a meaningful correction in
the stock market that would dent consumer confidence, the engine that has been
driving global economic growth could falter.
Corporate earnings and interest rates may determine the course of the
market for the balance of 1999. In general, first quarter earnings met consensus
estimates and second quarter earnings may be stronger than anticipated. Interest
rates are higher, and do not seem likely to trend much lower for the rest of the
year. With the S&P 500's gains already approximating 1999 earnings growth
forecasts, we see little fundamental justification for the market to move
appreciably higher. Mutual fund flows are still favoring stocks, but money is no
longer pouring into equity mutual funds at the rates seen in previous years.
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.
148
<PAGE> 165
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 98.12% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
ADVERTISING -- 1.46%
BOWLIN Outdoor Advertising &
Travel Center Inc. (a) 60,000 $ 360,000
The Ackerley Group Inc. 340,000 6,183,750
------------
6,543,750
AEROSPACE -- 6.66%
AAR Corporation 18,000 408,375
Ametek Inc. 100,000 2,300,000
Coltec Industries Inc. (a) 90,000 1,951,875
Curtiss-Wright Corporation 88,000 3,421,000
GenCorp Inc. 210,000 5,302,500
Kaman Corporation (Class A) 110,000 1,725,625
Moog Inc. (Class A) (a) 40,000 1,375,000
Sequa Corporation (Class A) 70,000 4,900,000
Sequa Corporation (Class B) 40,500 2,895,750
SPS Technologies Inc. (a) 150,000 5,625,000
------------
29,905,125
APPAREL & TEXTILES -- 0.26%
Carlyle Industries Inc. (a) 200,259 256,582
Hartmarx Corporation (a) 220,000 921,250
------------
1,177,832
AUTOMOTIVE -- 8.42%
A. O. Smith Corporation 12,000 336,000
A. O. Smith Corporation (Class
A) 4,000 108,500
Arvin Industries Inc. 45,000 1,704,375
Borg-Warner Automotive Inc. 27,000 1,485,000
Clarcor Inc. 230,000 4,413,125
Earl Scheib Inc. (a) 225,000 1,068,750
Federal Mogul Corporation 24,500 1,274,000
Lund International Holdings Inc.
(a) 24,000 150,000
Midas Inc. 30,000 851,250
Modine Manufacturing Company 265,000 8,629,062
Navistar International
Corporation (a) 72,000 3,600,000
Standard Motor Products Inc. 255,000 6,247,500
Superior Industries
International Inc. 102,000 2,785,875
Wynns International Inc. 280,000 5,162,500
------------
37,815,937
BROADCASTING -- 8.44%
Chris-Craft Industries Inc. (a) 176,000 8,294,000
Echostar Communications
Corporation (Class A) (a) 10,000 1,534,375
Fisher Companies Inc. 27,000 1,701,000
Gray Communications Systems Inc. 86,000 1,720,000
Gray Communications Systems
Inc.(Class B) 165,000 2,330,625
Paxson Communications
Corporation (a) 215,000 2,687,500
United Television Inc. 67,000 7,026,625
USA Networks Inc. (a) 314,700 12,627,337
------------
37,921,462
BUILDING & CONSTRUCTION -- 0.00%
Core Materials Corporation 6,500 20,313
BUSINESS SERVICES -- 0.13%
MDC Corporation (Class A) (a) 30,000 363,750
Nashua Corporation (a) 22,000 217,250
------------
581,000
CABLE -- 7.31%
AFC Cable Systems Inc. (a) 20,000 706,250
Cablevision Systems Corporation
(Class A) (a) 242,000 16,940,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- ------------
<S> <C> <C>
Century Communications
Corporation (Class A) (a) 110,000 $ 5,060,000
Rogers Communications Inc.
(Class B) (a) 393,000 6,361,687
TCI Satellite Entertainment
Inc.(Class A) (a) 135,000 396,563
United International Holdings
Inc. (Class A) (a) 50,000 3,381,250
------------
32,845,750
CHEMICALS -- 1.75%
Church & Dwight Company Inc. 68,000 2,958,000
Ferro Corp. 55,000 1,512,500
Sybron Chemicals Inc. (a) 190,000 3,372,500
------------
7,843,000
COMPUTER HARDWARE -- 0.00%
Cerion Technologies Inc. (a) (d) 90,000 --
COMPUTER SERVICES -- 0.28%
Checkfree Holdings Corporation
(a) 2,000 55,125
Tyler Technologies Inc. 175,000 1,203,125
------------
1,258,250
CONSUMER DURABLES -- 0.67%
Hussmann International Inc. 100,000 1,656,250
Noel Group (a) 135,000 84,375
Noel Group Units (a) 135,000 77,625
Oneida Ltd. 42,000 1,181,250
------------
2,999,500
CONSUMER PRODUCTS -- 0.16%
ARC International Corporation
(a) 30,000 39,375
Mikasa Inc. 62,000 701,375
------------
740,750
CONSUMER SERVICES -- 0.71%
Berlitz International Inc. (a) 68,000 1,249,500
ITT Educational Services Inc.
(a) 75,000 1,954,688
------------
3,204,188
ELECTRICAL EQUIPMENT -- 1.96%
Ampco-Pittsburgh Corporation 130,000 1,665,625
Oak Technology Inc. (a) 250,000 906,250
SL Industries Inc. 45,000 573,750
Thomas Industries Inc. 220,000 4,510,000
UCAR International Inc. (a) 45,000 1,136,250
------------
8,791,875
ELECTRONICS -- 0.89%
CTS Corporation 42,000 2,940,000
Power-One Inc. (a) 7,000 172,375
Watkins Johnson Company 30,000 885,000
------------
3,997,375
ENERGY -- 0.63%
International Comfort Products
Corporation 180,000 2,047,500
Kaneb Services Inc. (a) 180,000 765,000
------------
2,812,500
ENTERTAINMENT & LEISURE -- 4.91%
Ascent Entertainment Group Inc.
(a) 150,000 2,118,750
Bull Run Corporation (a) 150,000 628,125
Churchill Downs Inc. 35,000 1,207,500
Florida Panthers Holdings Inc.
(a) 130,000 1,389,375
Gaylord Entertainment Company 266,701 8,001,030
GC Companies Inc. (a) 193,000 6,899,750
Jackpot Enterprises Inc. (a) 215,000 1,827,500
------------
22,072,030
</TABLE>
149
<PAGE> 166
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- ------------
<S> <C> <C>
FINANCE -- 0.70%
Advest Group Inc. 20,000 $ 398,750
Pioneer Group Inc. 160,000 2,760,000
------------
3,158,750
FOOD & BEVERAGES & TOBACCO -- 5.21%
Brunos Inc. (a) 60,000 15,000
Buenos Aires Embotelladora
(ADR)(a) (d) 40,227 --
Celestial Seasonings Inc. (a) 250,000 5,375,000
Chock Full o' Nuts Corporation
(a) 315,000 3,287,812
General Cigar Holdings
Inc.(Class A) (a) 285,000 2,226,563
General Cigar Holdings
Inc.(Class B) (a) 190,000 1,413,220
Ingles Markets Inc. (Class A) 82,500 1,258,125
Pepsi Cola Puerto Rico Bottling
Company (a) 160,000 880,000
Ralcorp Holdings Inc. (a) 75,000 1,204,688
Robert Mondavi Corporation
(Class A) (a) 10,000 363,750
Tootsie Roll Industries Inc. 97,850 3,779,456
Whitman Corporation 200,000 3,600,000
------------
23,403,614
HOTELS & RESTAURANTS -- 1.89%
Advantica Restaurant Group Inc.
(a) 56,000 192,500
Aztar Corporation (a) 550,000 5,053,125
Extended Stay America Inc. (a) 55,000 660,000
Lakes Gaming Inc. (a) 35,000 382,813
Park Place Entertainment
Corporation (a) 85,000 823,437
Trump Hotels & Casino Resorts
Inc. (a) 300,000 1,368,750
------------
8,480,625
INSURANCE -- 3.09%
Argonaut Group Inc. 105,000 2,520,000
Danielson Holding Corporation
(a) 60,000 345,000
Liberty Corporation 131,000 7,139,500
Midland Company 152,500 3,869,688
------------
13,874,188
MACHINERY -- 5.06%
Baldwin Technology Company
Inc.(Class A) (a) 165,000 484,688
Commercial Intertech Corporation 60,000 956,250
Fairchild Corporation (Class A)
(a) 175,503 2,237,663
Flowserve Corporation 150,000 2,840,625
Franklin Electric Company Inc. 16,500 1,072,500
Idex Corporation 110,000 3,616,250
Katy Industries Inc. 160,000 2,080,000
Kollmorgen Corporation 140,000 2,100,000
Nortek Inc. (a) 120,000 3,757,500
Paxar Corporation (a) 185,000 1,665,000
Standex International
Corporation 18,000 492,750
Tennant Company 9,000 288,000
Watts Industries Inc. (Class A) 60,000 1,151,250
------------
22,742,476
MANUFACTURING -- 4.77%
Aviall Inc. 10,000 188,125
Barnes Group Inc. 50,000 1,087,500
Belden Inc. 45,000 1,077,187
Bway Corporation (a) 6,000 85,500
Crane Company 65,000 2,043,437
Cuno Inc. (a) 98,000 1,874,250
Dexter Corporation 4,000 163,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- ------------
<S> <C> <C>
Fedders Corporation (Class A) 385,000 $ 2,358,125
Fedders USA Inc. 100,000 668,750
Graco Inc. 40,000 1,175,000
Industrial Distribution Group
Inc. (a) 40,000 202,500
Mark IV Industries Inc. 100,000 2,112,500
Material Sciences Corporation
(a) 138,000 2,070,000
Myers Industries Inc. 30,000 600,000
Oil Dri Corporation of America 120,000 1,920,000
Park Ohio Holdings Corporation
(a) 130,000 2,201,875
Rawlings Sporting Goods Company
Inc. (a) 50,500 498,688
Strattec Security Corporation
(a) 33,000 1,113,750
------------
21,440,437
METALS & MINING -- 0.45%
Homestake Mining Company 29,600 242,350
TVX Gold Inc. (a) 650,000 650,000
WHX Corporation (a) 170,000 1,115,625
------------
2,007,975
MISC. FINANCIAL SERVICES -- 1.34%
Data Broadcasting Corporation
(a) 88,000 929,500
Paymentech Inc. (a) 200,000 5,075,000
------------
6,004,500
NEUTRACEUTICALS -- 0.16%
Irwin Naturals/4 Health Inc. (a) 18,000 33,750
Weider Nutrition International
Inc. 170,000 701,250
------------
735,000
PAPER PRODUCTS -- 0.39%
Greif Brothers Corporation
(Class A) 68,000 1,734,000
PHARMACEUTICALS -- 2.94%
Agribrands International Inc.
(a) 15,000 593,438
Carter Wallace Inc. 275,000 5,001,562
Ivax Corporation (a) 440,000 6,215,000
Twinlab Corporation (a) 160,000 1,375,000
------------
13,185,000
PRINTING & PUBLISHING -- 5.07%
A.H. Belo Corporation (Class A) 27,000 531,563
Lee Enterprises Inc. 64,000 1,952,000
McClatchy Company (Class A) 90,000 2,981,250
Media General Inc. (Class A) 160,000 8,160,000
Meredith Corporation 40,000 1,385,000
Penton Media Inc. 100,000 2,425,000
Pulitzer Inc. 55,000 2,670,937
Thomas Nelson Inc. 35,000 389,375
Topps Company Inc. (a) 310,000 2,257,187
------------
22,752,312
REAL ESTATE -- 1.12%
Catellus Development Corporation
(a) 245,000 3,797,500
Griffin Land & Nurseries Inc.
(a) 110,000 1,237,500
------------
5,035,000
RETAIL -- 3.03%
Burlington Coat Factory
Warehouse Corporation 125,000 2,414,063
CDnow Inc. (a) 8,000 141,000
Coldwater Creek Inc. (a) 45,000 877,500
Lillian Vernon Corporation 330,000 4,290,000
Neiman Marcus Group Inc. (a) 200,000 5,137,500
Phar Mor Inc. (a) 65,000 276,250
Sports Authority Inc. (a) 110,000 488,125
------------
13,624,438
</TABLE>
150
<PAGE> 167
ENTERPRISE ACCUMULATION TRUST
SMALL COMPANY VALUE PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- ------------
<S> <C> <C>
SECURITY & INVESTIGATION SERVICES -- 2.51%
Borg-Warner Security Corporation
(a) 80,000 $ 1,625,000
Pittway Corporation (Class A) 78,000 2,666,625
Rollins Inc. 364,000 5,801,250
Wackenhut Corporation (Class A) 40,000 1,190,000
------------
11,282,875
TELECOMMUNICATIONS -- 10.09%
Aerial Communications Inc. (a) 230,000 3,105,000
Aliant Communications Inc. 8,000 369,500
Associated Group Inc. (Class A)
(a) 76,000 4,949,500
Atlantic Tele-Network Inc. 15,000 157,500
Cellullar Communications of
Puerto Rico (a) 84,000 2,394,000
Commonwealth Telephone
Enterprises Inc. 26,077 1,054,489
Commonwealth Telephone
Enterprises Inc. (Class B) (a) 58,833 2,397,445
Communications Systems Inc. 60,000 742,500
COMSAT Corporation 175,000 5,687,500
CoreComm Ltd. (a) 102,000 4,921,500
GST Telecommunications Inc. (a) 212,000 2,795,750
Omnipoint Corporation (a) 55,000 1,591,562
RCN Corporation (a) 86,000 3,579,750
Rogers Cantel Mobile
Communications Inc. (Class B)
(a) 47,000 772,562
Telephone and Data Systems Inc. 138,000 10,082,625
Teligent Inc. (Class A) (a) 12,000 717,750
------------
45,318,933
TRANSPORTATION -- 1.82%
GATX Corporation 207,700 7,905,581
TransPro Inc. 50,000 262,500
------------
8,168,081
TRAVEL/ENTERTAINMENT/LEISURE -- 0.82%
Hearst Argyle Television Inc. 35,000 840,000
TV Guide Inc. (Class A) (a) 78,000 2,856,750
------------
3,696,750
UTILITIES -- 1.29%
AGL Resources Inc. 10,000 184,375
Citizens Utilities Company
(Class B) (a) 390,000 4,338,750
Eastern Enterprises 28,000 1,113,000
Southwest Gas Corporation 5,000 143,125
------------
5,779,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- ------------
<S> <C> <C>
WASTE MANAGEMENT -- 0.05%
EnviroSource Inc. (a) 105,000 $ 223,125
WIRELESS COMMUNICATIONS -- 1.68%
Allen Telecom Inc. (a) 50,000 537,500
Price Communications Corporation
(a) 468,750 7,031,250
------------
7,568,750
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $348,520,398) 440,746,716
- ----------------------------------------------------------------------
U.S. TREASURY BILLS -- 1.72%
- ----------------------------------------------------------------------
U.S. Treasury Bill 4.51%
due 09/16/99 $1,962,000 1,943,074
U.S. Treasury Bill 4.54%
due 08/12/99 4,177,000 4,146,518
U.S. Treasury Bill 4.545%
due 09/16/99 1,645,000 1,629,008
------------
TOTAL U.S. TREASURY BILLS
(IDENTIFIED COST $7,718,600) 7,718,600
- ----------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.64%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 07/01/99
Collateral: U.S. Treasury Note $2,840,000,
7.125%, due 02/29/00
Value $3,007,999 2,880,000 2,880,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $2,880,000) 2,880,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $359,118,998) $451,345,316
OTHER ASSETS LESS LIABILITIES -- (0.48)% (2,168,380)
------------
NET ASSETS 100% $449,176,936
======================================================================
</TABLE>
(a) Non-income producing security.
(d) Security is fair valued at June 30, 1999.
(ADR) American Depository Receipt.
See notes to financial statements.
151
<PAGE> 168
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
VONTOBEL USA INC.
NEW YORK, NY
Investment Management
Vontobel USA became Portfolio Manager on April 1, 1999. The firm manages
approximately $2 billion and its normal investment minimum is $10 million.
Investment Objective
The objective of the Enterprise International Growth Portfolio is to seek
capital appreciation.
Investment Strategies
The International Growth Portfolio invests primarily in non-U.S. equity
securities that the Portfolio Manager believes are undervalued. The Portfolio
Manager uses an approach that involves bottom-up stock selection. The Portfolio
Manager looks for companies that are good predictable businesses selling at
attractive prices relative to an estimate of intrinsic value. The Portfolio
Manager diversifies investments among European, Australian and Far East ("EAFE")
markets.
First Half 1999 Performance Review
Vontobel assumed management of the International Growth Portfolio on April
1, 1999. As of June 30, 1999, the portfolio has been completely restructured to
reflect Vontobel's investment philosophy. Hedge positions against the Euro and
the Swiss Franc have been opened to protect European investment returns in U.S.
Dollar terms.
A large number of positions were closed, and the total number of holdings
was reduced from over 200 to well under 100. This reflects the Vontobel policy
of bottom-up security selection that focuses on companies with attractive
fundamentals, offering high return on equity, consistent historical earnings
growth, low debt and high free cash flow. Additionally, the country allocation
shifted. All Canadian positions were closed, holdings in the European sector
were increased, and Pacific Rim holdings were reduced. Currently, there is a
very slight overweight versus the EAFE in Europe, a market-neutral posture in
Japan, and a modest underweight in the Pacific Rim.
The massive sell-off of securities necessary to align the portfolio with
Vontobel's current investment strategy had a negative impact on performance
early in the second quarter. Losses were sustained while unloading many
securities that did not meet Vontobel's investment criterion, largely due to
company fundamentals. As the quarter progressed, and the portfolio management
team was able to reap the rewards of holding positions that conform to current
investment outlook and philosophy, performance picked up in the later weeks of
the quarter.
Future Investment Strategy
Given the real interest rate climate in Europe, it is reasonable to believe
that the equity markets are currently undervalued. Vontobel thinks that as the
earnings currently coming through are higher than projected expectations,
revaluations will occur.
Major market sectors in Europe, such as finance, health care and
telecommunications should benefit from the current economic environment, with
rising rates, and a Euro-Dollar exchange rate that is continuing to be favorable
for Euroland exports. Vontobel's belief is that the Euro will test parity in the
coming months. Many restructurings and significant merger and acquisition
activity adds to what Vontobel believes is a positive climate for businesses in
the new Europe, spurring a continued overweighting in the European sector.
Japanese and the other Asian markets have been driven by liquidity for the
first six months of 1999, and Vontobel questions the sustainability of the
current rebound. Some restructuring has begun in Japan, but for the near-term
Vontobel
152
<PAGE> 169
projects a neutral exposure, as Vontobel still believes they provide attractive
investment opportunities. The majority of the Portfolio's Japanese holdings have
average earnings expectations of about 35 percent, and most are businesses with
large overseas markets.
As with all international funds, the International Growth Portfolio carries
additional risks associated with possibly less stable foreign securities,
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.
153
<PAGE> 170
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 94.66% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
BELGIUM -- 0.64%
Barco 3,900 $ 627,571
DENMARK -- 0.50%
Bang & Olufsen Holdings (Class B) 7,600 481,604
FINLAND -- 1.79%
Nokia Corporation (ADR) (Class A) 11,600 1,062,125
Sampo Insurance Company
Ltd.(Class A) 23,400 677,825
-----------
1,739,950
FRANCE -- 11.85%
Altran Technologies 3,100 818,083
Axa 11,700 1,426,810
CGIP 21,600 1,044,293
Dassault Systemes 24,600 812,753
L'Oreal 1,500 1,013,584
Louis Vuitton Moet Hennessy 4,100 1,199,899
Louis Vuitton Moet Hennessy (Rts) 4,100 119,821
Scor 26,300 1,304,056
Societe Generale (Class A) 6,400 1,127,503
Total Fina (Class B) 11,900 1,534,616
Vivendi 14,072 1,139,456
-----------
11,540,874
GERMANY -- 3.51%
Allianz 2,800 776,437
BMW 1,300 893,850
Mannesmann 11,700 1,745,219
-----------
3,415,506
HONG KONG -- 2.46%
Dah Sing Financial Group 159,000 605,580
SmarTone Telecommunications
Holdings Ltd. 195,000 693,682
Sun Hung Kai Properties Ltd. 120,000 1,094,269
-----------
2,393,531
IRELAND -- 2.38%
Allied Irish Banks 73,900 978,473
CRH 27,400 485,374
Elan Corporation (ADR) (a) 30,600 849,150
-----------
2,312,997
ITALY -- 0.78%
Telecom Italia 73,100 759,580
JAPAN -- 20.18%
Bridgestone Corporation 45,000 1,361,494
Fuji Photo Film 27,000 1,022,237
Honda Motor Company Ltd. 23,000 975,366
Hoya Corporation 20,000 1,129,206
Mikuni Coca-Cola Bottling Company
Ltd. 19,000 386,377
Murata Manufacturing Company Ltd. 17,000 1,118,624
Nintendo Company Ltd. 12,000 1,687,360
NTT Data Corporation 134 1,065,620
NTT Mobile Communication Network
Inc. 34 460,941
NTT Mobile Communication Network
Inc. (a) 136 1,821,278
Rohm Company Ltd. 15,000 2,349,756
Sony Corporation 13,000 1,402,414
Takeda Chemical Industries 47,000 2,179,631
Tokyo Broadcasting System Inc. 35,000 506,324
Tokyo Electron Ltd. 22,000 1,493,097
Yasuda Fire & Marine Insurance
Company Ltd. 129,000 683,550
-----------
19,643,275
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
MALAYSIA -- 0.05%
Malayan Banking Berhad 9,000 $ 27,000
Nestle (Malaysia) Berhad 5,000 19,737
-----------
46,737
NETHERLANDS -- 9.62%
Aegon 16,000 1,184,000
Aegon (ADR) 19,400 1,406,894
ASM Lithography Holdings (a) 24,000 1,387,937
Getronics 17,500 672,888
Heineken 20,100 1,028,753
Hunter Douglas 21,268 730,073
Kempen & Company 14,000 699,947
Philips Electronics 13,184 1,299,953
Vendex KBB 35,900 958,495
-----------
9,368,940
SINGAPORE -- 2.45%
Jardine Strategic Holdings Ltd. 362,500 942,500
Singapore Press Holdings Ltd. 84,788 1,444,684
-----------
2,387,184
SPAIN -- 0.86%
Banco Popular Espanol 11,700 841,251
SWEDEN -- 6.48%
ABB (Class B) 87,700 1,162,239
Assa Abloy (Class B) 160,400 1,738,344
Assa Abloy (Rts) (Class B) 160,400 34,011
AstraZeneca Group 35,087 1,368,099
Hennes & Mauritz (Series B) 63,400 1,568,383
OM Gruppen 38,600 436,518
-----------
6,307,594
SWITZERLAND -- 10.66%
Credit Suisse Group 12,300 2,127,645
Nestle 700 1,260,819
Pharma Vision 2000 (a) 600 378,111
Roche Holdings 136 2,238,827
Roche Holdings Genusschein 223 2,291,518
Schweizerische
Rueckversicherungs-
Gesellschaft 600 1,142,049
Swisscom (a) 2,500 940,454
-----------
10,379,423
UNITED KINGDOM -- 20.45%
BP Amoco (ADR) 9,300 1,009,050
Capita Group 64,300 665,382
CGU 51,000 734,351
Compass Group 172,000 1,706,669
Diageo 46,000 483,263
Dixons Group 76,000 1,425,561
Hays 87,700 924,807
HSBC Holdings 45,600 1,615,795
Invensys 157,000 742,414
Lloyds TSB Group 75,600 1,026,602
Misys 116,400 996,272
Next 56,000 679,679
Provident Financial 49,100 674,875
Rentokil Initial 364,800 1,414,540
Schroders 36,000 726,336
Securicor 104,700 921,712
Smithkline Beecham 58,000 754,236
Tomkins 185,000 801,917
Vodafone AirTouch 72,500 1,426,191
WPP Group 139,200 1,178,473
-----------
19,908,125
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $88,971,547) 92,154,142
- ----------------------------------------------------------------------
</TABLE>
154
<PAGE> 171
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
PREFERRED STOCK -- 1.80%
- ----------------------------------------------------------------------
GERMANY -- 1.80%
Sap 4,400 $ 1,757,600
-----------
TOTAL PREFERRED STOCK
(IDENTIFIED COST $1,393,219) 1,757,600
- ----------------------------------------------------------------------
CONVERTIBLE CORPORATE BOND -- 0.51%
- ----------------------------------------------------------------------
UNITED STATES -- 0.51%
Salomon Smith Barney Holdings
Inc. (Series H), 5.12% due
01/21/00 (v) $ 500,000 497,500
-----------
TOTAL CONVERTIBLE CORPORATE BOND
(IDENTIFIED COST $500,000) 497,500
-----------
REPURCHASE AGREEMENT -- 3.10%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25% due
07/01/99
Collateral: U.S. Treasury Note
$2,975,000, 7.125% due 02/29/00
Value $3,150,985 3,015,000 3,015,000
-----------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $3,015,000) 3,015,000
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----------
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $93,879,766) $97,424,242
OTHER ASSETS LESS LIABILITIES -- (0.07)% (68,270)
-----------
NET ASSETS 100% $97,355,972
======================================================================
</TABLE>
(a) Non-income producing security.
(v) Variable interest rate security; interest rate is as of June 30, 1999, and
is adjusted monthly.
(Rts) Rights
(ADR) American Depository Receipt.
See notes to financial statements.
155
<PAGE> 172
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
CAYWOOD-SCHOLL CAPITAL MANAGEMENT
SAN DIEGO, CALIFORNIA
Investment Management
Caywood-Scholl manages approximately $1 billion for institutional clients,
and its normal investment minimum is $1 million.
Investment Objective
The objective of the Enterprise High-Yield Bond Portfolio is to seek
maximum current income.
Investment Strategies
The High-Yield Bond Portfolio invests primarily in high-yield,
income-producing U.S. corporate bonds rated B3 to Ba1 by Moody's Investors
Service, inc. ("Moody's") or B- to BB+ by Standard & Poor's corporation ("S&P"),
which are commonly known as "junk bonds." The Portfolio's investments are
selected by the Portfolio Manager after examination of the economic outlook to
determine those industries that appear favorable for investment. Industries
going through a perceived decline generally are not candidates for selection.
After the industries are selected, the Portfolio Manager identifies bonds of
issuers within those industries based on their creditworthiness, their yields in
relation to their credit and the relative value in relation to the high-yield
market. Companies near or in bankruptcy are not considered for investment. The
Portfolio does not purchase bonds which are rated Ca or lower by Moody's or CC
or lower by S&P or which, if unrated, in the judgement of the Portfolio Manager
have characteristics of such lower-grade bonds. Should an investment be
subsequently downgraded to Ca or lower or CC or lower, the Portfolio Manager has
discretion to hold or liquidate the security. Subject to the restrictions
described above, under normal circumstances, up to 20 percent of the Portfolio's
assets may include: (1) bonds rated Caa by Moody's or CCC by S&P; (2) unrated
debt securities which, in the judgement of the Portfolio Manager, have
characteristics similar to those described above; (3) convertible debt
securities; (4) puts, calls and futures as hedging devices; (5) foreign issuer
debt securities; and (6) short-term money market instruments, including
certificates of deposit, commercial paper, U.S. Government securities and other
income producing cash equivalents.
First Half 1999 Performance Review
Despite a modest rise in intermediate U.S. Treasury interest rates,
high-yield bonds have substantially outperformed most higher-grade fixed-income
sectors. The market's fundamentals continue to be overshadowed by weak
technicals. Demand for high-yield bonds, like most fixed-income securities, has
slackened due to investors' concern over rising U.S. Treasury rates. The good
news is high-yield valuations are attractive and fundamentals are sound. More
specifically, strong economic conditions have led to mostly positive earnings
reports for high-yield issuers. The pace of mergers and acquisitions continues
to benefit certain sectors of the market, such as telecommunications, due to the
positive event risk. Lastly, the bank loan market and the equity markets have
added liquidity to the marketplace, giving high-yield issuers financial
flexibility. The single troubling aspect of the market's fundamentals is the
increasing default rate which is reducing market liquidity for "problem"
companies.
Future Investment Strategy
The high economic growth rate, coupled with very low inflation is making
the fundamental case for high-yield bonds very compelling for upper tier
credits.
The Portfolio will remain broadly diversified with emphasis placed on
non-cyclical and higher growth industries such as telecommunications, cable and
media. As always, Caywood-Scholl will search for the best "risk adjusted
relative value" available in the marketplace.
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> 173
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
CORPORATE BONDS, CONVERTIBLE
SECURITIES, COMMON & NUMBER OF SHARES OR
PREFERRED STOCKS -- 89.00% PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 0.69%
BE Aerospace Inc.
9.50% due 11/01/08 $ 250,000 $ 252,500
Coltec Industries Inc.
7.50% due 04/15/08 600,000 600,000
------------
852,500
APPAREL & TEXTILES -- 0.75%
Fruit of the Loom Inc.
8.875% due 04/15/06 1,000,000 917,500
AUTOMOTIVE -- 2.26%
Avis Rent a Car Inc.
11.00% due 05/01/09 1,000,000 1,001,250
Budget Group Inc.
9.125% due 04/01/06 750,000 701,250
Lear Corporation
7.96% due 05/15/05 500,000 483,750
Sonic Automotive Inc. (Series
B)
11.00% due 08/01/08 600,000 592,500
------------
2,778,750
BANKING -- 1.59%
Bay View Capital Corporation
9.125% due 08/15/07 550,000 518,375
DVI Inc.
9.875% due 02/01/04 200,000 194,500
Imperial Credit Industries
Inc. (Series B),
9.875% due 01/15/07 550,000 438,625
Western Financial Savings
BankOrange California,
8.50% due 07/01/03 900,000 803,250
------------
1,954,750
BROADCASTING -- 5.25%
Allbritton Communications
Company (Series B),
8.875% due 02/01/08 450,000 437,625
Chancellor Media Corporation
9.00% due 10/01/08 1,000,000 1,020,000
Chancellor Media Corporation
(Series B),
8.125% due 12/15/07 500,000 486,250
Fox Family Worldwide Inc.
0% due 11/01/07 (c) 750,000 473,437
Fox Family Worldwide Inc.
9.25% due 11/01/07 750,000 695,625
Fox/Liberty Networks LLC
0% due 08/15/07 (c) 2,700,000 2,143,125
Rogers Communications Inc.
8.875% due 07/15/07 500,000 503,750
Rogers Communications Inc.
9.125% due 01/15/06 200,000 203,500
Sinclair Broadcast Group Inc.
8.75% due 12/15/07 500,000 490,000
------------
6,453,312
BUILDING & CONSTRUCTION -- 3.77%
American Standard Inc.
7.375% due 02/01/08 2,100,000 1,974,000
Building Materials Corporation
America (Series B),
7.75% due 07/15/05 550,000 521,125
Building Materials Corporation
America (Series B),
8.00% due 10/15/07 400,000 382,500
Nortek Inc.
8.875% due 08/01/08 400,000 410,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
Nortek Inc.
(Series B)
9.125% due 09/01/07 $ 900,000 $ 895,500
Republic Group Inc.
9.50% due 07/15/08 450,000 448,875
------------
4,632,000
BUSINESS SERVICES -- 3.08%
CEX Holdings Inc.
9.625% due 06/01/08 600,000 562,500
Group Maintenance America
Corporation,
9.75% due 01/15/09 850,000 839,375
Integrated Electric Services
Inc.,
9.375% due 02/01/09 1,400,000 1,375,500
United Rentals Inc.
8.80% due 08/15/08 750,000 735,937
United Rentals Inc. (Series B)
8.80% due 08/15/08 275,000 269,844
------------
3,783,156
CABLE -- 7.16%
Adelphia Communications
Corporation,
7.875% due 05/01/09 250,000 231,875
Adelphia Communications
Corporation (Series B),
9.25% due 10/01/02 100,000 101,250
Adelphia Communications
Corporation (Series B),
10.50% due 07/15/04 850,000 909,500
Bresnan Communications Group
0% due 02/01/09 (c) 400,000 260,500
Bresnan Communications Group
8.00% due 02/01/09 200,000 197,500
Century Communications
Corporation,
9.50% due 03/01/05 400,000 414,000
Century Communications
Corporation (Series B),
Zero Coupon due 01/15/08 850,000 381,438
Charter Communications
Holdings
8.25% due 04/01/07 1,975,000 1,891,062
Echostar Corporation
9.375% due 02/01/09 2,650,000 2,703,000
Mediacom LLC/Mediacom Capital
Corporation
(Series B),
8.50% due 04/15/08 550,000 543,125
Telewest Communications
0% due 04/15/09 (c) 1,750,000 1,165,937
------------
8,799,187
CHEMICALS -- 1.32%
Huntsman Polymers Corporation
11.75% due 12/01/04 250,000 271,250
Lyondell Chemical Company
9.625% due 05/01/07 650,000 666,250
PCI Chemicals Canada Inc.
9.25% due 10/15/07 350,000 296,625
Pioneer Americas Acquisition
Corporation (Series B),
9.25% due 06/15/07 450,000 385,875
------------
1,620,000
</TABLE>
157
<PAGE> 174
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
COMMUNICATIONS -- 3.31%
Globalstar LP/Globalstar
Capital
10.75% due 11/01/04 $ 150,000 $ 100,125
Globalstar LP/Globalstar
Capital
11.375% due 02/15/04 1,000,000 687,500
Globalstar LP/Globalstar
Capital
11.50% due 06/01/05 $ 250,000 168,750
Globalstar Telecommunications
(Wts) (a) 450 21,066
Iridium World Communications
(Wts) (a) 250 125
Level 3 Communications Inc.
0% due 12/01/08 (c) $ 700,000 431,375
Level 3 Communications Inc.
9.125% due 05/01/08 1,325,000 1,305,125
Loral Space &
Communication Ltd.
0% due 01/15/07 (c) $1,100,000 584,375
Loral Space & Communication
Ltd. (Wts) (a) 600 5,136
Loral Space &
Communications Ltd.,
9.50% due 01/15/06 $ 450,000 392,625
Qwest Communications
International Inc. (Series
B),
0% due 02/01/08 (c) 500,000 373,125
------------
4,069,327
CONSUMER PRODUCTS -- 3.57%
Boyds Collection Ltd.
9.00% due 05/15/08 478,000 469,635
Chattem Inc. (Series B)
8.875% due 04/01/08 1,000,000 987,500
Corning Consumer Products
Company (Series B),
9.625% due 05/01/08 350,000 318,063
French Fragrances Inc. (Series
B),
10.375% due 05/15/07 350,000 354,812
French Fragrances Inc. (Series
D),
10.375% due 05/15/07 200,000 202,750
Revlon Consumer Products
Corporation,
8.625% due 02/01/08 350,000 326,375
Scotts Company
8.625% due 01/15/09 1,000,000 990,000
Sealy Mattress Company (Series
B),
0% due 12/15/07 (c) 1,150,000 743,187
------------
4,392,322
CONTAINERS/PACKAGING -- 3.19%
Huntsman Packaging Corporation
9.125% due 10/01/07 600,000 592,500
Owens Illinois Inc.
7.35% due 05/15/08 1,800,000 1,707,786
Owens Illinois Inc.
8.10% due 05/15/07 550,000 547,591
Printpack Inc. (Series B)
9.875% due 08/15/04 500,000 493,750
United States Can Corporation
(Series B),
10.125% due 10/15/06 550,000 580,937
------------
3,922,564
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
CRUDE & PETROLEUM -- 0.73%
Clark Refining & Marketing
Inc.
8.875% due 11/15/07 $ 250,000 $ 213,438
Trizec Hahn Corporation
(Series B),
10.875% due 12/01/05 800,000 683,000
------------
896,438
ELECTRONICS -- 0.27%
Axiohm Transaction Solutions
9.75% due 10/01/07 500,000 328,750
ENERGY -- 2.26%
Calpine Corporation
7.75% due 04/15/09 1,850,000 1,766,750
CMS Energy Corporation
7.50% due 01/15/09 250,000 237,478
Nuevo Energy Company (Series
B)
8.875% due 06/01/08 250,000 240,000
Ocean Energy Inc. (Series B)
8.375% due 07/01/08 550,000 533,500
------------
2,777,728
ENTERTAINMENT & LEISURE -- 0.18%
AMF Bowling Inc.
Zero Coupon due 05/12/18 1,550,000 218,938
FINANCE -- 2.21%
PDVSA Finance Ltd. 9.375% due
11/15/07 650,000 629,129
RBF Finance Company
11.00% due 03/15/06 2,050,000 2,085,875
------------
2,715,004
FOOD & BEVERAGES & TOBACCO -- 1.51%
Canandaigua Brands Inc.
8.50% due 03/01/09 900,000 873,000
NBTY Inc. (Series B)
8.625% due 09/15/07 800,000 707,000
Twin Laboratories Inc.
10.25% due 05/15/06 260,000 276,250
------------
1,856,250
GAMING -- 3.01%
Boyd Gaming Corporation
9.50% due 07/15/07 750,000 748,125
Circus Circus Enterprises Inc.
9.25% due 12/01/05 1,000,000 1,015,000
Empress Entertainment Inc.
8.125% due 07/01/06 800,000 808,000
Mirage Resorts Inc.
6.75% due 08/01/07 200,000 187,536
Mohegan Tribal Gaming
Authority
8.75% due 01/01/09 450,000 444,375
Trump Atlantic City Associates
11.25% due 05/01/06 550,000 495,000
------------
3,698,036
HEALTH CARE -- 3.98%
Columbia/HCA Healthcare
Corporation,
6.91% due 06/15/05 700,000 634,676
Columbia/HCA Healthcare
Corporation,
7.00% due 07/01/07 500,000 435,425
Columbia/HCA Healthcare
Corporation,
7.15% due 03/30/04 300,000 282,234
</TABLE>
158
<PAGE> 175
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
Columbia/HCA Healthcare
Corporation,
7.25% due 05/20/08 $ 250,000 $ 218,965
Dade International Inc.
(Series B),
11.125% due 05/01/06 350,000 378,437
Fisher Scientific
International Inc.,
9.00% due 02/01/08 $1,200,000 1,137,000
Fresenius Medical Care Capital
Trust (Preferred Stock) 150 148,500
Maxxim Medical Inc.
10.50% due 08/01/06 $ 650,000 697,125
PHP Healthcare Corporation
6.50% due 12/15/02 (b)(d) 550,000 5,500
Quest Diagnostics Inc.
10.75% due 12/15/06 600,000 660,750
Tenet Healthcare Corporation
8.125% due 12/01/08 300,000 288,657
------------
4,887,269
HOTELS & RESTAURANTS -- 2.45%
Foodmaker Corporation (Series
B)
9.75% due 11/01/03 250,000 258,168
Foodmaker Inc.
8.375% due 04/15/08 950,000 931,000
Hammon (John Q.) Hotels
8.875% due 02/15/04 250,000 232,500
Host Marriott LP
8.375% due 02/15/06 1,000,000 962,500
Perkins Family Restaurant
(Series B),
10.125% due 12/15/07 600,000 631,500
------------
3,015,668
MACHINERY -- 2.02%
Applied Power Inc.
8.75% due 04/01/09 1,000,000 967,500
Columbus McKinnon Corporation
8.50% due 04/01/08 500,000 486,250
Navistar International
Corporation (Series B),
8.00% due 02/01/08 1,000,000 1,035,000
------------
2,488,750
MEDICAL SERVICES -- 1.36%
Quest Diagnostic Inc.
9.875% due 07/01/09 750,000 753,750
Triad Hospitals Holdings Inc.
11.00% due 05/15/09 900,000 915,750
------------
1,669,500
METALS & MINING -- 2.68%
AK Steel Corporation
7.875% due 02/15/09 1,500,000 1,451,250
AK Steel Corporation
9.125% due 12/15/06 450,000 462,375
Kaiser Aluminum & Chemical
Corporation (Series D),
10.875% due 10/15/06 250,000 260,625
Oregon Steel Mills Inc.
11.00% due 06/15/03 250,000 265,625
WCI Steel Inc. (Series B)
10.00% due 12/01/04 700,000 712,250
WHX Corporation
10.50% due 04/15/05 150,000 142,125
------------
3,294,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
OIL SERVICES -- 0.56%
Gulf Canada Resources Ltd.
8.375% due 11/15/05 $ 700,000 $ 694,750
PAPER & FOREST PRODUCTS -- 1.27%
Buckeye Cellulose Corporation
8.50% due 12/15/05 550,000 554,125
Buckeye Technologies Inc.
8.00% due 10/15/10 650,000 628,875
SD Warren Company (Series B)
12.00% due 12/15/04 350,000 377,125
------------
1,560,125
PHARMACEUTICALS -- 1.76%
Biovail Corporation
International New,
10.875% due 11/15/05 1,100,000 1,126,125
King Pharmaceutical Inc.
10.75% due 02/15/09 1,000,000 1,032,500
------------
2,158,625
PRINTING & PUBLISHING -- 1.84%
Nebraska Book Company Inc.
8.75% due 02/15/08 650,000 598,813
TV Guide Inc.
8.125% due 03/01/09 1,750,000 1,658,125
------------
2,256,938
REAL ESTATE -- 0.62%
Crown Castle International
Corporation,
0% due 11/15/07 (c) 1,100,000 763,125
RESTAURANTS -- 0.17%
CKE Restaurants Inc.
9.125% due 05/01/09 225,000 215,100
RETAIL -- 1.94%
Charming Shoppes Inc.
7.50% due 07/15/06 350,000 350,437
Cole National Group Inc.
8.625% due 08/15/07 850,000 788,375
Michaels Stores Inc.
6.75% due 01/15/03 (c) 75,000 76,969
Nine West Group Inc.
5.50% due 07/15/03 150,000 150,188
Randalls Food Markets Inc.
(Series B),
9.375% due 07/01/07 950,000 1,014,125
------------
2,380,094
TELECOMMUNICATIONS -- 14.23%
21st Century Telecom Group
Inc. 0% due 02/15/08 (c) 850,000 358,063
CCPR Services Inc.
10.00% due 02/01/07 650,000 718,250
Crown Castle International
Corporation,
9.00% due 05/15/11 $ 400,000 392,000
E. Spire Communications Inc.
(Wts) (a) 300 17,230
Firstworld Communications Inc.
0% due 04/15/08 (c) $ 300,000 162,375
Firstworld Communications Inc.
(Wts)(a)(d) 300 --
Flag Ltd.
8.25% due 01/30/08 $1,050,000 989,625
Global Crossings Holdings Ltd.
9.625% due 05/15/08 400,000 425,000
ICG Holdings Inc.
0% due 05/01/06 (c) 700,000 559,125
</TABLE>
159
<PAGE> 176
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
ICG Services Inc.
0% due 02/15/08 (c) $ 250,000 $ 157,500
ICO Global Communication
15.00% due 08/01/05 200,000 82,000
Intermedia Communications Inc.
(Series B),
0% due 07/15/07 (c) 250,000 178,437
Intermedia Communications Inc.
(Series B),
8.50% due 01/15/08 575,000 526,125
McLeodUSA Inc.
0% due 03/01/07 (c) 1,000,000 761,250
McLeodUSA Inc.
8.125% due 02/15/09 1,000,000 937,500
Metromedia Fiber Network Inc.
10.00% due 11/15/08 350,000 359,625
Metronet Communications
Corporation,
0% due 11/01/07 (c) $ 500,000 401,250
Metronet Communications
Corporation (Wts) (a) 100 10,898
Nextel Communications Inc.
0% due 09/15/07 (c) $2,900,000 2,061,125
Nextlink Communications Inc.
0% due 04/15/08 (c) 1,200,000 697,500
Nextlink Communications Inc.
10.75% due 11/15/08 750,000 768,750
Omnipoint Corporation (Series
A)
11.625% due 08/15/06 200,000 206,500
Orange
8.00% due 08/01/08 $1,250,000 1,193,750
Pagemart Nationwide Inc. 875 6,617
Panamsat Corporation
6.375% due 01/15/08 $1,000,000 916,930
Pathnet Inc.
12.25% due 04/15/08 $ 250,000 144,375
Pathnet Inc. (Wts.)(a)(d) 250 --
RCN Corporation
0% due 10/15/07 (c) $ 800,000 537,000
RCN Corporation (Series B)
0% due 02/15/08 (c) 650,000 411,938
Rogers Cantel Inc.
8.80% due 10/01/07 850,000 858,500
Sprint Spectrum LP
0% due 08/15/06 (c) 450,000 407,250
Telecorp PCS Inc.
0% due 04/15/09 (c) 1,000,000 558,750
Teligent Inc.
11.50% due 12/01/07 250,000 256,250
Winstar Communications Inc.
10.00% due 03/15/08 850,000 750,125
Winstar Equipment Corporation
12.50% due 03/15/04 650,000 679,250
------------
17,490,863
TEXTILES -- 4.04%
Phillips Van Heusen
Corporation
9.50% due 05/01/08 900,000 901,125
Pillowtex Corporation (Series
B)
9.00% due 12/15/07 350,000 336,875
Polymer Group Inc. (Series B)
8.75% due 03/01/08 250,000 241,875
Polymer Group Inc. (Series B)
9.00% due 07/01/07 600,000 586,500
Westpoint Stevens Inc.
7.875% due 06/15/08 2,450,000 2,370,375
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
William Carter Company (Series
A),
10.375% due 12/01/06 $ 500,000 $ 523,750
------------
4,960,500
TRANSPORTATION -- 1.22%
Eletson Holdings Inc.
9.25% due 11/15/03 350,000 333,375
Northwest Airlines Inc.
8.52% due 04/07/04 1,000,000 977,900
TBS Shipping International
Ltd.
10.00% due 05/01/05 (b) 550,000 191,125
------------
1,502,400
TRAVEL/ENTERTAINMENT/LEISURE -- 0.20%
International Game Technology
7.875% due 05/15/04 250,000 245,000
UTILITIES -- 1.08%
Aes Corporation
9.50% due 06/01/09 750,000 770,625
Cogentrix Energy Inc.
8.75% due 10/15/08 150,000 151,875
Ferrellgas Partners LP (Series
B),
9.375% due 06/15/06 300,000 299,250
Midland Funding Corporation
(Series C-94),
10.33% due 07/23/02 101,961 107,696
------------
1,329,446
WASTE MANAGEMENT -- 1.06%
Allied Waste North America
7.625% due 01/01/06 700,000 651,000
Allied Waste North America
7.875% due 01/01/09 700,000 648,375
------------
1,299,375
WIRELESS COMMUNICATIONS -- 0.41%
Clearnet Communications Inc.
0% due 05/01/09 (c) 900,000 507,375
------------
TOTAL CORPORATE BONDS, CONVERTIBLE
SECURITIES, COMMON & PREFERRED STOCKS
(IDENTIFIED COST $114,430,647) 109,385,665
- --------------------------------------------------------------------
FOREIGN BONDS -- 6.02%
- --------------------------------------------------------------------
APPAREL & TEXTILES -- 0.18%
Reliance Industries Ltd.
8.25% due 01/15/27 250,000 223,935
BASIC INDUSTRIES -- 1.13%
Cemex 12.75% due 07/15/06 900,000 1,019,250
Cemex International Capital
Inc. 9.66% due 12/29/49 400,000 371,000
------------
1,390,250
BROADCASTING -- 1.21%
Grupo Televisa (Series A)
11.375% due 05/15/03 450,000 459,414
Grupo Televisa
11.875% due 05/15/06 350,000 359,625
Satelites Mexicanos
10.125% due 11/01/04 650,000 518,375
TV Azteca
10.50% due 02/15/07 200,000 152,500
------------
1,489,914
</TABLE>
160
<PAGE> 177
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
CONTAINERS/PACKAGING -- 0.75%
Viacap
11.375% due 05/15/07 $1,000,000 $ 920,250
ENERGY -- 0.61%
Petroleos Mexicanos
8.85% due 09/15/07 250,000 222,500
YPF Sociedad Anonima
9.125% due 02/24/09 500,000 527,010
------------
749,510
GOVERNMENT BOND -- 1.65%
Republic of Argentina
12.125% due 02/25/19 250,000 224,688
Republic of Argentina Global
(Series BGL4),
11.00% due 10/09/06 1,000,000 928,750
Republic of Turkey
10.00% due 09/19/07 200,000 184,068
United Mexican States
8.625% due 03/12/08 450,000 416,250
United Mexican States
10.375% due 02/17/09 250,000 265,937
------------
2,019,693
PAPER & FOREST PRODUCTS -- 0.38%
Indah Kiat Finance Mauritius
Ltd.,
10.00% due 07/01/07 250,000 174,375
Indah Kiat International
Finance Co. (Series B),
11.875% due 06/15/02 100,000 82,905
Pindo Deli Finance Mauritius
Ltd.,
10.75% due 10/01/07 300,000 210,750
------------
468,030
TRANSPORTATION -- 0.11%
TFM
10.25% due 06/15/07 150,000 130,125
------------
TOTAL FOREIGN BONDS
(IDENTIFIED COST $7,951,264) 7,391,707
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
---------------- -----
<S> <C> <C>
U.S. TREASURY NOTES -- 1.20%
- --------------------------------------------------------------------
U.S. Treasury Note
4.50% due 01/31/01 $1,000,000 $ 985,580
U.S. Treasury Note
5.50% due 05/15/09 500,000 489,225
------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $1,477,199) 1,474,805
- --------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.38%
- --------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement,
4.25% due 07/01/99
Collateral: U.S. Treasury
Note $2,890,000,
7.125% due 02/29/00
Value $3,060,957 2,930,000 2,930,000
------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $2,930,000 ) 2,930,000
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $126,789,110) $121,182,177
OTHER ASSETS LESS LIABILITIES -- 1.40% 1,721,497
------------
NET ASSETS 100% $122,903,674
====================================================================
</TABLE>
(a) Non-income producing security.
(b) In bankruptcy; Portfolio has ceased accrual of interest.
(c) Step Bond - Coupon increases periodically based upon predetermined schedule.
(d) Security is fair valued at June 30, 1999.
See notes to financial statements.
161
<PAGE> 178
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 Enterprise Managed Portfolio on October 1, 1994.
Oppenheimer Capital manages approximately $60 billion for institutional clients,
and its normal investment minimum is $20 million.
Investment Objective
The objective of the Enterprise Managed Portfolio is to seek growth of
capital over time.
Investment Strategies
The Managed Portfolio invests in a diversified portfolio of common stocks,
bonds and cash equivalents. The allocation of the Portfolio's assets among the
different types of permitted investments will vary from time to time based upon
the Portfolio Manager's evaluation of economic and market trends and its
perception of the relative values available from such types of securities at any
given time. There is neither a minimum nor a maximum percentage of the
Portfolio's assets that may, at any given time, be invested in any specific
types of investments. However, the Portfolio invests primarily in equity
securities at times when the Portfolio Manager believes that the best investment
values are available in the equity markets. The Portfolio may invest almost all
of its assets in high-quality short-term money market and cash equivalent
securities when the Portfolio Manager deems it advisable to preserve capital.
Consequently, while the Portfolio will earn income to the extent it is invested
in bonds or cash equivalents, the Portfolio does not have any specific income
objective. The bonds in which the Portfolio may invest will normally be
investment grade intermediate to long-term U.S. Government and corporate debt.
First Half 1999 Performance Review
Value stocks came back to life in the first half of 1999. Value stocks
include those judged to be trading at market prices well below the inherent
value of the business, while growth stocks include those believed to have
excellent long-term earnings growth prospects. After an extended period in which
stock market gains were driven by a limited number of technology and large-cap
growth issues, market leadership broadened to include undervalued stocks with
strong business fundamentals of the type owned by the Portfolio.
Despite their gains in the second quarter, the types of value stocks in
which the Portfolio invests continue to trade at a significant discount to
large-cap growth stocks and the market in general. OpCap believes this bodes
well for its value style in the months ahead.
Future Investment Strategy
OpCap continues to look for -- and find -- great companies with strong,
sustainable cash flows; high competitive barriers; and rational managements with
proven track records who are dedicated to shareholder value.
OpCap believes a long-term perspective and emphasis on buying superior
undervalued businesses provide a competitive advantage as the market moves away
from highly priced growth stocks toward a renewed recognition of the enduring
value of a company's earnings, cash flow and competitiveness.
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.
162
<PAGE> 179
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
COMMON STOCKS -- 84.23% PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 3.74%
Boeing Company 1,989,600 $ 87,915,450
United Technologies
Corporation 200,000 14,337,500
--------------
102,252,950
BANKING -- 9.61%
BankBoston Corporation 930,000 47,546,250
M & T Bank Corporation 117,000 64,350,000
Wells Fargo & Company 3,530,000 150,907,500
--------------
262,803,750
BROADCASTING -- 6.89%
Chancellor Media Corporation
(a) 575,600 31,729,950
News Corporation Ltd. (ADR) 2,678,800 84,549,625
Time Warner Inc. 980,300 72,052,050
--------------
188,331,625
CHEMICALS -- 6.11%
Du Pont (E. I.) De Nemours &
Company 1,650,000 112,715,625
Monsanto Company 1,380,000 54,423,750
--------------
167,139,375
COMPUTER HARDWARE -- 1.29%
Compaq Computer Corporation 1,485,000 35,175,938
COMPUTER SOFTWARE -- 4.89%
Cadence Design Systems Inc.
(a) 1,109,300 14,143,575
Computer Associates
International Inc. 2,175,000 119,625,000
--------------
133,768,575
CONGLOMERATES -- 4.69%
Minnesota Mining &
Manufacturing Company 1,050,000 91,284,375
Textron Inc. 450,000 37,040,625
--------------
128,325,000
CONSUMER PRODUCTS -- 0.58%
Mattel Inc. 600,000 15,862,500
ELECTRICAL EQUIPMENT -- 0.23%
Emerson Electric Company 100,000 6,287,500
FINANCE -- 8.58%
Citigroup Inc. 3,843,750 182,578,125
Household International Inc. 1,100,000 52,112,500
--------------
234,690,625
FOOD & BEVERAGES & TOBACCO -- 3.10%
Diageo (ADR) 1,968,800 84,658,400
HOTELS & RESTAURANTS -- 6.34%
McDonald's Corporation 4,200,000 173,512,500
INSURANCE -- 1.46%
ACE Ltd. 1,416,500 40,016,125
MACHINERY -- 2.57%
Caterpillar Inc. 1,173,000 70,380,000
MANUFACTURING -- 2.76%
Avery Dennison Corporation 50,000 3,018,750
ITT Industries Inc. 1,900,000 72,437,500
--------------
75,456,250
MISC. FINANCIAL
SERVICES -- 5.09%
Freddie Mac 2,400,000 139,200,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
PROPERTY-CASUALTY INSURANCE -- 2.83%
XL Capital Ltd. (Class A) 1,372,428 $ 77,542,182
PAPER & FOREST PRODUCTS -- 1.50%
Champion International
Corporation 854,500 40,909,188
PHARMACEUTICALS -- 2.10%
American Home Products
Corporation 997,000 57,327,500
PRINTING & PUBLISHING -- 1.72%
Donnelley (R. R.) & Sons
Company 1,271,200 47,113,850
REAL ESTATE -- 0.79%
Security Capital Group Inc.
(Class A) (a) 33,152 21,548,800
TELECOMMUNICATIONS -- 5.34%
Motorola Inc. 643,000 60,924,250
Sprint Corporation 1,610,200 85,038,687
--------------
145,962,937
TRANSPORTATION -- 2.02%
UAL Corporation (a) 850,000 55,250,000
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,670,447,010) 2,303,515,570
- ----------------------------------------------------------------------
U.S. TREASURY NOTES -- 5.79%
- ----------------------------------------------------------------------
U.S. Treasury Note 6.50% due
05/15/05 $150,000,000 154,230,000
U.S. Treasury Note 7.875% due
08/15/01 3,952,500 4,126,647
--------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $163,612,150) 158,356,647
- ----------------------------------------------------------------------
COMMERCIAL PAPER -- 8.21%
- ----------------------------------------------------------------------
Ford Motor Credit Company
5.13% due 08/02/99 50,000,000 49,772,000
General Motors Acceptance
Corporation, 4.76% due
07/06/99 50,000,000 49,966,944
Morgan Stanley Dean Witter
4.79% due 07/06/99 25,000,000 24,983,368
Prudential Funding Corporation
4.85% due 07/14/99 50,000,000 49,912,431
IBM Credit Corporation 5.00%
due 07/23/99 50,000,000 49,847,222
--------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $224,481,965) 224,481,965
- ----------------------------------------------------------------------
SHORT-TERM GOVERNMENT SECURITIES -- 1.09%
- ----------------------------------------------------------------------
Federal National Mortgage
Association Discount Note,
4.76% due 07/16/99 30,000,000 29,940,500
--------------
TOTAL SHORT-TERM GOVERNMENT SECURITIES
(IDENTIFIED COST $29,940,500) 29,940,500
- ----------------------------------------------------------------------
</TABLE>
163
<PAGE> 180
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
NUMBER OF SHARES OR
PRINCIPAL AMOUNT VALUE
------------------- -----
<S> <C> <C>
REPURCHASE AGREEMENT -- 0.37%
- ----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 07/01/99
Collateral: U.S. Treasury
Note $9,745,000, 8.75% due
08/15/00
Value $10,719,840 $ 10,195,000 $ 10,195,000
--------------
TOTAL REPURCHASE AGREEMENT
(IDENTIFIED COST $10,195,000) 10,195,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $2,098,676,625) $2,726,489,682
OTHER ASSETS LESS LIABILITIES -- 0.31% 8,359,419
--------------
NET ASSETS 100% $2,734,849,101
======================================================================
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
164
<PAGE> 181
(This page intentionally left blank)
165
<PAGE> 182
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
GROWTH AND
GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments, at value....................................... $118,176,599 $31,476,692 $662,626,428
Receivable for investments sold............................. -- -- 3,104,211
Receivable for fund shares sold............................. 2,139,922 434,710 632,876
Dividends and interest receivable........................... 61,423 8,911 583,506
Due from investment adviser................................. -- -- --
Forward currency contracts (net) receivable................. -- -- --
Cash and other assets....................................... 3,249 1,513 2,008,592
------------ ----------- ------------
Total assets...................................... 120,381,193 31,921,826 668,955,613
------------ ----------- ------------
LIABILITIES:
Payable for investments purchased........................... 4,067,482 559,362 4,696,296
Payable for fund shares redeemed............................ 158,533 4,717 484,935
Investment advisory fees payable............................ 60,622 15,926 423,847
Accrued expenses and other liabilities...................... 29,981 18,370 211,359
------------ ----------- ------------
Total liabilities................................. 4,316,618 598,375 5,816,437
------------ ----------- ------------
NET ASSETS................................... 116,064,575 31,323,451 663,139,176
============ =========== ============
NET ASSETS:
Paid-in capital............................................. 111,907,291 28,701,153 425,072,852
Undistributed (accumulated) net investment income (loss).... 117,920 62,151 11,217,435
Undistributed (accumulated) net realized gain (loss) on
investments and futures................................... (422,274) (9,835) 74,101,006
Unrealized appreciation (depreciation) on investments and
foreign currency denominated amounts...................... 4,461,638 2,569,982 152,747,883
------------ ----------- ------------
TOTAL NET ASSETS............................. $116,064,575 $31,323,451 $663,139,176
============ =========== ============
Fund shares outstanding..................................... 19,825,108 5,197,049 16,601,197
------------ ----------- ------------
Net asset value per share................................... $5.85 $6.03 $39.95
===== ===== ======
INVESTMENTS AT COST......................................... $113,714,961 $28,906,710 $509,878,545
</TABLE>
See notes to financial statements.
166
<PAGE> 183
<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>
$13,888,469 $12,401,363 $5,798,698 $451,345,316 $97,424,242 $121,182,177 $2,726,489,682
-- 234,720 150,966 81,942 458,971 458,396 --
201,969 165,185 27,618 605,817 500,780 216,272 1,744,045
16,046 1,780 -- 178,638 166,049 2,711,331 2,428,035
994 -- 1,619 -- -- -- --
-- -- -- -- 378,055 -- --
1,115,221 2,261 828 5,827 8,305 2,839 8,476,247
----------- ----------- ---------- ------------ ----------- ------------ --------------
15,222,699 12,805,309 5,979,729 452,217,540 98,936,402 124,571,015 2,739,138,009
----------- ----------- ---------- ------------ ----------- ------------ --------------
960,088 121,755 63,572 1,882,957 1,323,775 1,348,151 --
2,360 34,326 24,014 717,237 81,452 197,681 1,746,966
6,702 6,145 3,631 288,410 66,581 60,249 1,614,257
15,485 14,838 12,925 152,000 108,622 61,260 927,685
----------- ----------- ---------- ------------ ----------- ------------ --------------
984,635 177,064 104,142 3,040,604 1,580,430 1,667,341 4,288,908
----------- ----------- ---------- ------------ ----------- ------------ --------------
14,238,064 12,628,245 5,875,587 449,176,936 97,355,972 122,903,674 2,734,849,101
=========== =========== ========== ============ =========== ============ ==============
13,664,352 11,884,315 5,107,508 296,526,713 84,124,314 128,596,276 1,551,869,307
1,251 (12,882) (10,614) 2,524,302 1,392,390 -- 63,514,213
(19,091) (16,047) 29,473 57,899,603 7,907,742 (85,669) 491,652,524
591,552 772,859 749,220 92,226,318 3,931,526 (5,606,933) 627,813,057
----------- ----------- ---------- ------------ ----------- ------------ --------------
$14,238,064 $12,628,245 $5,875,587 $449,176,936 $97,355,972 $122,903,674 $2,734,849,101
=========== =========== ========== ============ =========== ============ ==============
2,518,830 2,058,053 938,085 14,414,634 14,225,390 23,414,570 62,753,015
----------- ----------- ---------- ------------ ----------- ------------ --------------
$5.65 $6.14 $6.26 $31.16 $6.84 $5.25 $43.58
====== ====== ======= ======= ====== ===== ======
$13,296,917 $11,628,504 $5,049,478 $359,118,998 $93,879,766 $126,789,110 $2,098,676,625
</TABLE>
See notes to financial statements.
167
<PAGE> 184
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
GROWTH
GROWTH AND INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............................................. $ 145,933 $ 48,852(1) $ 4,175,068(1)
Interest............................................... 177,906 75,109 1,445,550
---------- ---------- -----------
Total income...................................... 323,839 123,961 5,620,618
---------- ---------- -----------
EXPENSES:
Investment advisory fees............................... 171,599 44,150 2,469,230
Custodian and fund accounting fees..................... 14,054 7,033 44,993
Reports and notices to shareholders.................... 6,508 1,446 58,222
Trustees' fees and expenses............................ 2,753 2,761 2,512
Audit and legal fees................................... 10,030 7,916 17,445
Miscellaneous.......................................... 975 462 6,378
---------- ---------- -----------
Total expenses.................................... 205,919 63,768 2,598,780
---------- ---------- -----------
Less: Expense reimbursement.......................... -- (1,958) --
---------- ---------- -----------
Total expenses, net of expense reimbursement......... 205,919 61,810 2,598,780
---------- ---------- -----------
NET INVESTMENT INCOME (LOSS).................... 117,920 62,151 3,021,838
---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET:
Net realized gain (loss) on investments................ (422,176) (10,057) 30,495,087
Net realized gain (loss) on foreign currency
transactions......................................... -- -- --
---------- ---------- -----------
Net realized gain (loss) on investments................ (422,176) (10,057) 30,495,087
Net change in unrealized gain (loss) on investments and
foreign currency related transactions................ 4,413,464 2,558,613 19,372,841
---------- ---------- -----------
Net realized and unrealized gain (loss) on
investments..................................... 3,991,288 2,548,556 49,867,928
---------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $4,109,208 $2,610,707 $52,889,766
========== ========== ===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
(1) Net of foreign taxes withheld of $333 for Growth and Income, $9,807 for
Equity, $129 for Equity Income, $123,204 for International Growth and
$144,921 for Managed, respectively.
168
<PAGE> 185
<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>
$ 49,617(1) $ 4,540 $ 2,275 $ 1,710,365 $ 941,852(1) $ 9,000 $ 16,500,830(1)
4,685 12,574 3,200 322,492 62,416 5,418,154 10,987,794
-------- -------- -------- ----------- ----------- ----------- ------------
54,302 17,114 5,475 2,032,857 1,004,268 5,427,154 27,488,624
-------- -------- -------- ----------- ----------- ----------- ------------
19,021 17,306 11,492 1,674,337 397,673 355,750 9,763,570
7,823 4,503 6,065 44,894 90,281 25,870 167,749
656 628 341 38,429 8,478 11,324 243,068
2,762 2,762 2,763 2,187 802 865 10,484
7,881 7,877 7,865 13,254 6,890 12,346 62,669
462 462 462 4,519 901 797 31,427
-------- -------- -------- ----------- ----------- ----------- ------------
38,605 33,538 28,988 1,777,620 505,025 406,952 10,278,967
-------- -------- -------- ----------- ----------- ----------- ------------
(11,975) (3,542) (12,899) -- -- -- --
-------- -------- -------- ----------- ----------- ----------- ------------
26,630 29,996 16,089 1,777,620 505,025 406,952 10,278,967
-------- -------- -------- ----------- ----------- ----------- ------------
27,672 (12,882) (10,614) 255,237 499,243 5,020,202 17,209,657
-------- -------- -------- ----------- ----------- ----------- ------------
(19,091) (15,819) 30,326 31,452,141 10,952,848 (1,156,979) 104,629,952
-- -- -- -- (3,356,491) -- --
-------- -------- -------- ----------- ----------- ----------- ------------
(19,091) (15,819) 30,326 31,452,141 7,596,357 (1,156,979) 104,629,952
585,180 734,691 715,969 23,811,524 (6,670,492) (2,026,793) 72,546,282
-------- -------- -------- ----------- ----------- ----------- ------------
566,089 718,872 746,295 55,263,665 925,865 (3,183,772) 177,176,234
-------- -------- -------- ----------- ----------- ----------- ------------
$593,761 $705,990 $735,681 $55,518,902 $ 1,425,108 $ 1,836,430 $194,385,891
======== ======== ======== =========== =========== =========== ============
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
169
<PAGE> 186
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GROWTH PORTFOLIO GROWTH AND INCOME PORTFOLIO EQUITY PORTFOLIO
--------------------------- ---------------------------- ---------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)... $ 117,920 $ (159) $ 62,151 $ (116) $ 3,021,838 $ 8,195,694
Net realized gain (loss) on
investments................. (422,176) (98) (10,057) 338 30,495,087 43,607,008
Net change in unrealized gain
(loss) on investments....... 4,413,464 48,174 2,558,613 11,369 19,372,841 (4,143,581)
------------ ---------- ----------- -------- ------------- -------------
Net increase in net assets
resulting from
operations................ 4,109,208 47,917 2,610,707 11,591 52,889,766 47,659,121
------------ ---------- ----------- -------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income.......... -- -- -- -- -- (5,906,264)
Net realized gains............. -- -- -- -- -- (21,596,997)
------------ ---------- ----------- -------- ------------- -------------
Total dividends and
distributions to
shareholders........... -- -- -- -- -- (27,503,261)
------------ ---------- ----------- -------- ------------- -------------
FUND SHARE TRANSACTIONS:
Net proceeds from sales........ 121,433,827 1,906,210 30,513,488 525,993 97,638,921 259,368,662
Reinvestment of dividends and
distributions............... -- -- -- -- -- 27,503,261
Cost of shares redeemed........ (11,421,915) (10,672) (2,338,232) (96) (108,727,167) (203,493,446)
------------ ---------- ----------- -------- ------------- -------------
Net increase in net assets
from fund share
transactions.............. 110,011,912 1,895,538 28,175,256 525,897 (11,088,246) 83,378,477
------------ ---------- ----------- -------- ------------- -------------
Total increase in net
assets................. 114,121,120 1,943,455 30,785,963 537,488 41,801,520 103,534,337
NET ASSETS:
Beginning of period............ 1,943,455 -- 537,488 -- 621,337,656 517,803,319
------------ ---------- ----------- -------- ------------- -------------
End of period.................. $116,064,575 $1,943,455 $31,323,451 $537,488 $ 663,139,176 $ 621,337,656
============ ========== =========== ======== ============= =============
SHARES ISSUED AND REDEEMED:
Issued......................... 21,479,709 371,167 5,505,552 105,232 2,598,088 7,038,795
Issued in reinvestment of
dividends and
distributions............... -- -- -- -- -- 749,816
Redeemed....................... (2,023,669) (2,099) (413,716) (19) (2,873,035) (5,670,766)
------------ ---------- ----------- -------- ------------- -------------
Net increase................ 19,456,040 369,068 5,091,836 105,213 (274,947) 2,117,845
============ ========== =========== ======== ============= =============
</TABLE>
See notes to financial statements.
170
<PAGE> 187
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH
EQUITY INCOME PORTFOLIO CAPITAL APPRECIATION PORTFOLIO PORTFOLIO SMALL COMPANY VALUE PORTFOLIO
-------------------------- ------------------------------ -------------------------- ------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998 1999 1998
----------- ------------ ------------- -------------- ----------- ------------ ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 27,672 $ 127 $ (12,882) $ (234) $ (10,614) $ (327) $ 255,237 $ 2,269,126
(19,091) -- (15,819) (227) 30,326 (853) 31,452,141 25,594,861
585,180 6,372 734,691 38,168 715,969 33,251 23,811,524 1,607,587
----------- -------- ----------- -------- ---------- -------- ------------ -------------
593,761 6,499 705,990 37,707 735,681 32,071 55,518,902 29,471,574
----------- -------- ----------- -------- ---------- -------- ------------ -------------
(26,548) -- -- -- -- -- -- (1,050,835)
-- -- -- -- -- -- -- (24,299,778)
----------- -------- ----------- -------- ---------- -------- ------------ -------------
(26,548) -- -- -- -- -- -- (25,350,613)
----------- -------- ----------- -------- ---------- -------- ------------ -------------
13,884,717 458,517 12,597,101 473,649 5,316,372 436,953 68,274,155 176,919,909
26,548 -- -- -- -- -- -- 25,350,613
(705,368) (62) (1,186,102) (100) (645,350) (140) (81,417,240) (164,856,185)
----------- -------- ----------- -------- ---------- -------- ------------ -------------
13,205,897 458,455 11,410,999 473,549 4,671,022 436,813 (13,143,085) 37,414,337
----------- -------- ----------- -------- ---------- -------- ------------ -------------
13,773,110 464,954 12,116,989 511,256 5,406,703 468,884 42,375,817 41,535,298
464,954 -- 511,256 -- 468,884 -- 406,801,119 365,265,821
----------- -------- ----------- -------- ---------- -------- ------------ -------------
$14,238,064 $464,954 $12,628,245 $511,256 $5,875,587 $468,884 $449,176,936 $ 406,801,119
=========== ======== =========== ======== ========== ======== ============ =============
2,551,766 91,309 2,168,894 91,765 967,636 85,890 2,376,049 6,367,246
4,699 -- -- -- -- -- -- 967,950
(128,932) (12) (202,588) (18) (115,414) (27) (2,829,589) (6,146,963)
----------- -------- ----------- -------- ---------- -------- ------------ -------------
2,427,533 91,297 1,966,306 91,747 852,222 85,863 (453,540) 1,188,233
=========== ======== =========== ======== ========== ======== ============ =============
</TABLE>
See notes to financial statements.
171
<PAGE> 188
ENTERPRISE ACCUMULATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH PORTFOLIO HIGH-YIELD BOND PORTFOLIO MANAGED PORTFOLIO
------------------------------- ------------------------------- ---------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
---------------- ------------ ---------------- ------------ ---------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)............... $ 499,243 $ 895,906 $ 5,020,202 $ 7,113,860 $ 17,209,657 $ 46,304,587
Net realized gain (loss)
on investments....... 7,596,357 862,244 (1,156,979) 1,083,292 104,629,952 393,346,265
Net change in unrealized
gain (loss) on
investments.......... (6,670,492) 8,976,597 (2,026,793) (5,550,240) 72,546,282 (253,453,784)
------------ ------------ ------------ ------------ -------------- --------------
Net increase in net
assets resulting
from operations.... 1,425,108 10,734,747 1,836,430 2,646,912 194,385,891 186,197,068
------------ ------------ ------------ ------------ -------------- --------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... -- (956,997) (5,020,202) (7,113,860) -- (26,677,507)
Net realized gains...... -- (3,458,658) -- (1,380,937) -- (189,572,424)
------------ ------------ ------------ ------------ -------------- --------------
Total dividends and
distributions to
shareholders.... -- (4,415,655) (5,020,202) (8,494,797) -- (216,249,931)
------------ ------------ ------------ ------------ -------------- --------------
FUND SHARE TRANSACTIONS:
Net proceeds from
sales................ 24,688,788 33,682,098 39,578,334 53,781,245 271,548,125 828,656,136
Reinvestment of
dividends and
distributions........ -- 4,415,655 5,020,202 8,494,797 -- 216,249,931
Cost of shares
redeemed............. (20,552,140) (30,770,132) (20,376,044) (22,927,376) (470,389,823) (948,480,342)
------------ ------------ ------------ ------------ -------------- --------------
Net increase in net
assets from fund
share transactions... 4,136,648 7,327,621 24,222,492 39,348,666 (198,841,698) 96,425,725
------------ ------------ ------------ ------------ -------------- --------------
Total increase in
net assets...... 5,561,756 13,646,713 21,038,720 33,500,781 (4,455,807) 66,372,862
NET ASSETS:
Beginning of period..... 91,794,216 78,147,503 101,864,954 68,364,173 2,739,304,908 2,672,932,046
------------ ------------ ------------ ------------ -------------- --------------
End of period........... $ 97,355,972 $ 91,794,216 $122,903,674 $101,864,954 $2,734,849,101 $2,739,304,908
============ ============ ============ ============ ============== ==============
SHARES ISSUED AND
REDEEMED:
Issued.................. 3,662,306 5,053,178 7,311,852 9,618,868 6,499,337 19,612,770
Issued in reinvestment
of dividends and
distributions........ -- 680,379 938,420 1,543,662 -- 5,331,607
Redeemed................ (3,057,108) (4,760,079) (3,801,893) (4,163,250) (11,275,337) (22,958,015)
------------ ------------ ------------ ------------ -------------- --------------
Net increase......... 605,198 973,478 4,448,379 6,999,280 (4,776,000) 1,986,362
============ ============ ============ ============ ============== ==============
</TABLE>
See notes to financial statements.
172
<PAGE> 189
ENTERPRISE ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
C Based on average monthly shares outstanding for the period.
<TABLE>
<CAPTION>
ENTERPRISE GROWTH PORTFOLIO ENTERPRISE GROWTH AND INCOME PORTFOLIO
------------------------------------- ---------------------------------------
(UNAUDITED) FOR THE PERIOD (UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 12/01/98 THROUGH SIX MONTHS ENDED 12/01/98 THROUGH
JUNE 30, 1999 12/31/98 JUNE 30, 1999 12/31/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 5.27 $ 5.00 $ 5.11 $ 5.00
-------- ------- ------- -------
Net investment income (loss)...... 0.01(C) -- 0.03(C) --
Net realized and unrealized gain
(loss) on investments........... 0.57 0.27 0.89 0.11
-------- ------- ------- -------
Total from investment
operations...................... 0.58 0.27 0.92 0.11
-------- ------- ------- -------
Dividends from net investment
income.......................... -- -- -- --
Distributions from net capital
gains........................... -- -- -- --
-------- ------- ------- -------
Total distributions............... -- -- -- --
-------- ------- ------- -------
Net asset value, end of period.... $ 5.85 $ 5.27 $ 6.03 $ 5.11
======== ======= ======= =======
Total return...................... 11.01%(B) 5.40%(B) 18.00%(B) 2.20%(B)
-------- ------- ------- -------
Net assets, end of period (000)... $116,065 $ 1,943 $31,323 $ 537
-------- ------- ------- -------
Ratio of expenses to average net
assets.......................... 0.90%(A) 1.15%(A) 1.05%(A) 1.05%(A)
-------- ------- ------- -------
Ratio of expenses (excluding
waivers) to average net
assets.......................... 0.90%(A) 25.33%(A) 1.08%(A) 60.68%(A)
-------- ------- ------- -------
Ratio of net investment income
(loss) to average net assets.... 0.52%(A) (0.25)%(A) 1.06%(A) (0.45)%(A)
-------- ------- ------- -------
Ratio of net investment income
(loss) (excluding waivers) to
average net assets.............. 0.52%(A) (24.43)%(A) 1.02%(A) (60.08)%(A)
-------- ------- ------- -------
Portfolio turnover................ 15% 1% 1% 9%
-------- ------- ------- -------
</TABLE>
<TABLE>
<CAPTION>
ENTERPRISE EQUITY PORTFOLIO
-----------------------------------------------------------------------------------
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ---------------------------------------------------------------
JUNE 30, 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 36.82 $ 35.09 $ 28.86 $ 23.35 $ 18.14 $ 17.95
-------- -------- -------- -------- -------- -------
Net investment income (loss)................ 0.18(C) 0.46 0.30 0.37 0.33 0.28
Net realized and unrealized gain (loss) on
investments............................... 2.95 3.00 7.13 5.52 6.38 0.41
-------- -------- -------- -------- -------- -------
Total from investment operations............ 3.13 3.46 7.43 5.89 6.71 0.69
-------- -------- -------- -------- -------- -------
Dividends from net investment income........ -- (0.37) (0.32) (0.09) (0.49) (0.18)
Distributions from net capital gains........ -- (1.36) (0.88) (0.29) (1.01) (0.32)
-------- -------- -------- -------- -------- -------
Total distributions......................... -- (1.73) (1.20) (0.38) (1.50) (0.50)
-------- -------- -------- -------- -------- -------
Net asset value, end of period.............. $ 39.95 $ 36.82 $ 35.09 $ 28.86 $ 23.35 $ 18.14
======== ======== ======== ======== ======== =======
Total return................................ 8.50%(B) 9.90% 25.76% 25.22% 38.44% 3.87%
-------- -------- -------- -------- -------- -------
Net assets, end of period (000)............. $663,139 $621,338 $517,803 $314,907 $167,963 $88,583
-------- -------- -------- -------- -------- -------
Ratio of expenses to average net assets..... 0.83%(A) 0.83% 0.84% 0.81% 0.69% 0.67%
-------- -------- -------- -------- -------- -------
Ratio of expenses (excluding waivers) to
average net assets........................ 0.83%(A) 0.83% 0.84% 0.81% 0.72% 0.69%
-------- -------- -------- -------- -------- -------
Ratio of net investment income (loss) to
average net assets........................ 0.96%(A) 1.42% 1.42% 1.94% 1.94% 1.81%
-------- -------- -------- -------- -------- -------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets.................................... 0.96%(A) 1.42% 1.42% 1.94% 1.91% 1.79%
-------- -------- -------- -------- -------- -------
Portfolio turnover.......................... 30% 30% 17% 30% 29% 38%
-------- -------- -------- -------- -------- -------
</TABLE>
See notes to financial statements.
173
<PAGE> 190
ENTERPRISE ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
C Based on average monthly shares outstanding for the period.
<TABLE>
<CAPTION>
ENTERPRISE SMALL
ENTERPRISE CAPITAL COMPANY
ENTERPRISE EQUITY INCOME APPRECIATION GROWTH PORTFOLIO
------------------------ ---------------------- ----------------------
FOR THE (UNAUDITED) FOR THE (UNAUDITED) FOR THE
(UNAUDITED) PERIOD SIX MONTHS PERIOD SIX MONTHS PERIOD
SIX MONTHS 12/01/98 ENDED 12/01/98 ENDED 12/01/98
ENDED THROUGH JUNE 30, THROUGH JUNE 30, THROUGH
JUNE 30, 1999 12/31/98 1999 12/31/98 1999 12/31/98
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 5.09 $ 5.00 $ 5.57 $ 5.00 $ 5.46 $ 5.00
-------- -------- -------- -------- -------- --------
Net investment income (loss)............. 0.03(C) -- (0.02)(C) -- (0.02)(C) --
Net realized and unrealized gain (loss)
on investments......................... 0.54 0.09 0.59 0.57 0.82 0.46
-------- -------- -------- -------- -------- --------
Total from investment operations......... 0.57 0.09 0.57 0.57 0.80 0.46
-------- -------- -------- -------- -------- --------
Dividends from net investment income..... (0.01) -- -- -- -- --
Distributions from net capital gains..... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions...................... (0.01) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of period........... $ 5.65 $ 5.09 $ 6.14 $ 5.57 $ 6.26 $ 5.46
======== ======== ======== ======== ======== ========
Total return............................. 11.21%(B) 1.80%(B) 10.23%(B) 11.40%(B) 14.65%(B) 9.20%(B)
-------- -------- -------- -------- -------- --------
Net assets, end of period (000).......... $ 14,238 $ 465 $ 12,628 $ 511 $ 5,876 $ 469
-------- -------- -------- -------- -------- --------
Ratio of expenses to average net
assets................................. 1.05%(A) 1.05%(A) 1.30%(A) 1.30%(A) 1.40%(A) 1.40%(A)
-------- -------- -------- -------- -------- --------
Ratio of expenses (excluding waivers) to
average net assets..................... 1.52%(A) 66.67%(A) 1.45%(A) 63.71%(A) 2.52%(A) 60.67%(A)
-------- -------- -------- -------- -------- --------
Ratio of net investment income (loss) to
average net assets..................... 1.09%(A) 0.54%(A) (.56)%(A) (.95)%(A) (0.92)%(A) (1.26)%(A)
-------- -------- -------- -------- -------- --------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets................................. 0.62%(A) (65.07)%(A) (.71)%(A) (63.36)%(A) (2.05)%(A) (60.54)%(A)
-------- -------- -------- -------- -------- --------
Portfolio turnover....................... 3% --% 31% 1% 22% 4%
-------- -------- -------- -------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
ENTERPRISE SMALL COMPANY VALUE PORTFOLIO
------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------
JUNE 30, 1999 1998 1997 1996 1995 1994*
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 27.36 $ 26.70 $ 20.22 $ 18.48 $ 17.56 $ 18.62
-------- -------- -------- -------- -------- --------
Net investment income (loss)............. 0.02(C) 0.16 0.05 0.25 0.32 0.19
Net realized and unrealized gain (loss)
on investments......................... 3.78 2.33 8.91 1.82 1.75 (0.16)
-------- -------- -------- -------- -------- --------
Total from investment operations......... 3.80 2.49 8.96 2.07 2.07 0.03
-------- -------- -------- -------- -------- --------
Dividends from net investment income..... -- (0.08) (0.15) (0.12) (0.40) (0.10)
Distributions from net capital gains..... -- (1.75) (2.33) (0.21) (0.75) (0.99)
-------- -------- -------- -------- -------- --------
Total distributions...................... -- (1.83) (2.48) (0.33) (1.15) (1.09)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........... $ 31.16 $ 27.36 $ 26.70 $ 20.22 $ 18.48 $ 17.56
======== ======== ======== ======== ======== ========
Total return............................. 13.89%(B) 9.61% 44.32% 11.21% 12.28% 0.02%
-------- -------- -------- -------- -------- --------
Net assets, end of period (000).......... $449,177 $406,801 $365,266 $192,704 $166,061 $144,880
-------- -------- -------- -------- -------- --------
Ratio of expenses to average net
assets................................. 0.85%(A) 0.85% 0.86% 0.84% 0.69% 0.66%
-------- -------- -------- -------- -------- --------
Ratio of expenses (excluding waivers) to
average net assets..................... 0.85%(A) 0.85% 0.86% 0.84% 0.72% 0.67%
-------- -------- -------- -------- -------- --------
Ratio of net investment income (loss) to
average net assets..................... 0.12%(A) 0.56% 0.21% 1.35% 1.86% 1.30%
-------- -------- -------- -------- -------- --------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets................................. 0.12%(A) 0.56% 0.21% 1.35% 1.83% 1.29%
-------- -------- -------- -------- -------- --------
Portfolio turnover....................... 15% 37% 58% 137% 70% 58%
-------- -------- -------- -------- -------- --------
</TABLE>
See notes to financial statements.
174
<PAGE> 191
ENTERPRISE ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
C Based on average monthly shares outstanding for the period.
<TABLE>
<CAPTION>
ENTERPRISE INTERNATIONAL GROWTH PORTFOLIO
-----------------------------------------------------------------------
(UNAUDITED)
SIX FOR THE PERIOD
MONTHS NOVEMBER 18,
ENDED YEAR ENDED DECEMBER 31, 1994-
JUNE 30, ---------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 6.74 $ 6.18 $ 6.05 $ 5.39 $ 4.96 $ 5.00
------- ------- ------- ------- ------- ------
Net investment income (loss).............. 0.04(C) 0.06 0.06 0.05 0.04 --
Net realized and unrealized gain (loss) on
investments............................. 0.06 0.84 0.26 0.63 0.67 (0.04)
------- ------- ------- ------- ------- ------
Total from investment operations.......... 0.10 0.90 0.32 0.68 0.71 (0.04)
------- ------- ------- ------- ------- ------
Dividends from net investment income...... -- (0.07) (0.04) -- (0.04) --
Distributions from net capital gains...... -- (0.27) (0.15) (0.02) (0.24) --
------- ------- ------- ------- ------- ------
Total distributions....................... -- (0.34) (0.19) (0.02) (0.28) --
------- ------- ------- ------- ------- ------
Net asset value, end of period............ $ 6.84 $ 6.74 $ 6.18 $ 6.05 $ 5.39 $ 4.96
======= ======= ======= ======= ======= ======
Total return.............................. 1.48%(B) 14.83% 5.26% 12.65% 14.64% (0.80)%(B)
------- ------- ------- ------- ------- ------
Net assets, end of period (000)........... $97,356 $91,794 $78,148 $52,768 $18,598 $3,247
------- ------- ------- ------- ------- ------
Ratio of expenses to average net assets... 1.08%(A) 1.22% 1.19% 1.38% 1.55% 1.55%(A)
------- ------- ------- ------- ------- ------
Ratio of expenses (excluding waivers) to
average net assets...................... 1.08%(A) 1.22% 1.19% 1.38% 2.21% 8.85%(A)
------- ------- ------- ------- ------- ------
Ratio of net investment income (loss) to
average net assets...................... 1.07%(A) 1.04% 1.34% 1.32% 1.17% 0.80%(A)
------- ------- ------- ------- ------- ------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets.................................. 1.07%(A) 1.04% 1.34% 1.32% 0.51% (6.34)%(A)
------- ------- ------- ------- ------- ------
Portfolio turnover........................ 103% 55% 28% 21% 27% --%
------- ------- ------- ------- ------- ------
</TABLE>
<TABLE>
<CAPTION>
ENTERPRISE HIGH-YIELD BOND PORTFOLIO
-----------------------------------------------------------------------
(UNAUDITED)
SIX FOR THE PERIOD
MONTHS NOVEMBER 18,
ENDED YEAR ENDED DECEMBER 31, 1994-
JUNE 30, ---------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 5.37 $ 5.71 $ 5.51 $ 5.31 $ 4.98 $ 5.00
-------- -------- ------- ------- ------- ------
Net investment income (loss).............. 0.23(C) 0.46 0.51 0.45 0.45 0.04
Net realized and unrealized gain (loss) on
investments............................. (0.12) (0.26) 0.20 0.21 0.35 (0.01)
-------- -------- ------- ------- ------- ------
Total from investment operations.......... 0.11 0.20 0.71 0.66 0.80 0.03
-------- -------- ------- ------- ------- ------
Dividends from net investment income...... (0.23) (0.46) (0.51) (0.45) (0.45) (0.05)
Distributions from net capital gains...... -- (0.08) -- (0.01) (0.02) --
-------- -------- ------- ------- ------- ------
Total distributions....................... (0.23) (0.54) (0.51) (0.46) (0.47) (0.05)
-------- -------- ------- ------- ------- ------
Net asset value, end of period............ $ 5.25 $ 5.37 $ 5.71 $ 5.51 $ 5.31 $ 4.98
======== ======== ======= ======= ======= ======
Total return.............................. 1.96%(B) 3.60% 13.38% 12.95% 16.59% 0.50%(B)
-------- -------- ------- ------- ------- ------
Net assets, end of period (000)........... $122,904 $101,865 $68,364 $34,411 $15,223 $1,421
-------- -------- ------- ------- ------- ------
Ratio of expenses to average net assets... 0.69%(A) 0.72% 0.77% 0.85% 0.85% 0.85%(A)
-------- -------- ------- ------- ------- ------
Ratio of expenses (excluding waivers) to
average net assets...................... 0.69%(A) 0.72% 0.77% 0.94% 1.59% 7.80%(A)
-------- -------- ------- ------- ------- ------
Ratio of net investment income (loss) to
average net assets...................... 8.47%(A) 8.19% 8.47% 8.57% 8.51% 7.84%(A)
-------- -------- ------- ------- ------- ------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets.................................. 8.47%(A) 8.19% 8.47% 8.48% 7.77% 0.80%(A)
-------- -------- ------- ------- ------- ------
Portfolio turnover........................ 43% 109% 175% 175% 115% --%
-------- -------- ------- ------- ------- ------
</TABLE>
See notes to financial statements.
175
<PAGE> 192
ENTERPRISE ACCUMULATION TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENTERPRISE MANAGED PORTFOLIO
---------------------------------------------------------------------------
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED --------------------------------------------------------------------
JUNE 30, 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 40.56 $ 40.78 $ 34.31 $ 28.06 $ 20.82 $ 21.35
---------- ---------- ---------- ---------- ---------- --------
Net investment income (loss)........... 0.26(C) 0.71 0.35 0.59 0.40 0.40
Net realized and unrealized gain (loss)
on investments....................... 2.76 2.53 8.06 5.99 8.97 0.15
---------- ---------- ---------- ---------- ---------- --------
Total from investment operations....... 3.02 3.24 8.41 6.58 9.37 0.55
---------- ---------- ---------- ---------- ---------- --------
Dividends from net investment income... -- (0.43) (0.55) (0.06) (0.75) (0.46)
Distributions from net capital gains... -- (3.03) (1.39) (0.27) (1.38) (0.62)
---------- ---------- ---------- ---------- ---------- --------
Total distributions.................... -- (3.46) (1.94) (0.33) (2.13) (1.08)
---------- ---------- ---------- ---------- ---------- --------
Net asset value, end of period......... $ 43.58 $ 40.56 $ 40.78 $ 34.31 $ 28.06 $ 20.82
========== ========== ========== ========== ========== ========
Total return........................... 7.45%(B) 7.95% 24.50% 23.47% 46.89% 2.56%
---------- ---------- ---------- ---------- ---------- --------
Net assets, end of period (000)........ $2,734,849 $2,739,305 $2,672,932 $1,935,343 $1,264,718 $689,252
---------- ---------- ---------- ---------- ---------- --------
Ratio of expenses to average net
assets............................... 0.75%(A) 0.76% 0.76% 0.74% 0.67% 0.64%
---------- ---------- ---------- ---------- ---------- --------
Ratio of expenses (excluding waivers)
to average net assets................ 0.75%(A) 0.76% 0.76% 0.74% 0.67% 0.64%
---------- ---------- ---------- ---------- ---------- --------
Ratio of net investment income (loss)
to average net assets................ 1.27%(A) 1.66% 1.14% 2.16% 1.80% 2.23%
---------- ---------- ---------- ---------- ---------- --------
Ratio of net investment income (loss)
(excluding waivers) to average net
assets............................... 1.27%(A) 1.66% 1.14% 2.16% 1.80% 2.23%
---------- ---------- ---------- ---------- ---------- --------
Portfolio turnover..................... 26% 46% 32% 29% 31% 33%
---------- ---------- ---------- ---------- ---------- --------
</TABLE>
See notes to financial statements.
176
<PAGE> 193
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
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, Growth and Income, Equity,
Equity Income, Capital Appreciation, Small Company Growth, Small Company Value,
International Growth, High-Yield Bond and Managed.
The Trust is currently offered only to separate accounts of certain
insurance companies as an investment medium for both variable annuity contracts
and variable life insurance policies. The following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments -- Investment securities, other than debt
securities, listed on either a national or foreign securities exchange or traded
in the over-the-counter National Market System are valued each business day at
the last reported sale price on the exchange on which the security is primarily
traded. If there are no current day 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 their 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 creditworthiness of individual issuers, general economic
and specific industry conditions, and will fluctuate inversely with changes in
interest rates. In addition, the secondary trading market for lower quality
bonds may be less active and less liquid than the trading market for higher
quality bonds.
Repurchase Agreements -- Each Portfolio may acquire securities subject to
repurchase agreements. Under a typical repurchase agreement, a Portfolio would
acquire a debt security for a relatively short period (usually for one day and
not for more than one week) subject to an obligation of the seller to repurchase
and of the Portfolio to resell the debt security at an agreed-upon higher price,
thereby establishing a fixed investment return during the Portfolio's holding
period. Under each repurchase agreement, the Portfolio receives, as collateral,
securities whose market value (including interest) is at least equal to the
repurchase price.
Futures Contracts -- Upon entering into such a contract, a Portfolio is
required to deposit with the broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the exchange. Pursuant to the contract,
the Portfolio agrees to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such receipts or
payments, known as "variation margin," are recorded by the Portfolio as
unrealized appreciation or depreciation. When the contract is closed the
Portfolio records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and value at the time it was
closed. There were no open futures contracts held in any of the Portfolios at
June 30, 1999.
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 on the valuation date.
Dividend and interest income and certain expenses denominated in foreign
currencies are translated to U.S. dollars based on the exchange rates in effect
on the date the income is earned and the expense is incurred; and exchange gains
and losses are realized upon ultimate receipt or disbursement. The International
Growth
177
<PAGE> 194
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
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 security
transactions are determined on the basis of identified 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 -- Except with respect to the High-Yield Bond
Portfolio, dividends and distributions to shareholders from net investment
income and net realized capital gains, if any, are declared and paid at least
annually. For 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 average
daily net assets as of the close of business each day as follows: for each of
the Equity, Small Company Value, and Managed Portfolios, 0.80% for the first
$400 million, 0.75% for the next $400 million, and 0.70% for average daily 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 contractually agreed to limit the portfolios'
expenses through May 1, 2000, to the following expense ratios: 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 -- 0.85% and
Managed -- 1.30%.
Enterprise Capital is a wholly-owned subsidiary of MONY Life Insurance
Company, which is wholly-owned by MONY Group Inc. MONY Group Inc. and its
subsidiaries and affiliates had the following investments in the Trust as of
June 30, 1999: Growth -- $292,500, Growth and Income -- $301,500, Capital
Appreciation -- $307,000, Small Company Growth -- $313,000, and Equity
Income -- $282,500.
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 Group
Inc., is the Portfolio Manager for the Equity Income Portfolio. For the six
months ended June 30, 1999, Enterprise Capital incurred subadvisory fees payable
to 1740 Advisers, Inc. related to the Equity Income Portfolio of $7,609, with a
related payable balance of $2,847 as of June 30, 1999.
178
<PAGE> 195
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
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 June 30, 1999, the International Growth Portfolio had
entered into various forward currency exchange contracts under which it is
obligated to exchange currencies at specified future dates. Risks arise from the
possible inability of counterparties to meet the terms of their contracts and
from movements in currency values. Outstanding contracts at June 30, 1999 are as
follows:
<TABLE>
<CAPTION>
PURCHASES NET UNREALIZED
SETTLEMENT ---------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
---------- --------------- --------------- --------------
<S> <C> <C> <C>
7/1/99 EUR 139,919 USD 145,026 $ (790)
7/1/99 CHF 1,222,154 USD 791,551 (5,650)
7/1/99 CHF 227,272 USD 147,197 (1,051)
8/24/99 JPY 700,000,000 USD 5,988,024 (155,710)
--------
(163,201)
--------
SALES
----------------------------------
RECEIVE DELIVER
--------------- ---------------
7/2/99 USD 457,113 CHF 711,268 (264)
8/24/99 USD 11,771,100 EUR 11,000,000 385,810
8/24/99 USD 5,988,024 JPY 700,000,000 155,710
--------
541,256
--------
$378,055
========
</TABLE>
As part of its investment program, the High-Yield Bond Portfolio may enter
into futures contracts to hedge against anticipated future price and interest
rate changes. Risks of entering into futures contracts include: (1) the risk
that the price of the futures contracts may not move in the same direction as
the price of the securities in the various markets; (2) the risk that there will
be no liquid secondary market when the Portfolio attempts to enter into a
closing position; (3) the risk that the Portfolio will lose an amount in excess
of the initial margin deposit; and (4) the fact that the success or failure of
these transactions for the Portfolio depends on the ability of the Portfolio
Manager to predict movements in stock, bond, and currency prices and interest
rates. There were no open futures contracts at June 30, 1999.
5. PURCHASES AND SALES OF SECURITIES
For the six months ended June 30, 1999, 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.............................................. -- -- $101,462,882 $ 6,261,168
Growth and Income................................... -- -- 20,493,369 109,986
Equity.............................................. -- -- 207,742,850 174,724,579
Equity Income....................................... -- -- 12,388,140 136,016
Capital Appreciation................................ -- -- 11,370,915 1,337,903
Small Company Growth................................ -- -- 4,771,305 514,571
Small Company Value................................. -- -- 62,028,127 72,362,266
International Growth................................ -- -- 97,659,380 92,458,153
High-Yield Bond..................................... 481,758 15,728,008 71,872,822 33,846,922
Managed............................................. $159,890,625 $109,525,156 455,125,666 607,783,564
</TABLE>
179
<PAGE> 196
ENTERPRISE ACCUMULATION TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
6. TAX BASIS UNREALIZED GAIN (LOSS) OF INVESTMENTS AND DISTRIBUTIONS
At June 30, 1999, the cost of securities for Federal income tax purposes,
the aggregate gross unrealized gain for all securities for which there was an
excess of value over tax cost and the aggregate gross unrealized loss for all
securities for which there was an excess of tax cost over value were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET UNREALIZED
PORTFOLIO TAX COST GAIN LOSS GAIN (LOSS)
- --------- -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Growth........................................ $ 113,715,059 $ 6,606,249 $ (2,144,709) $ 118,176,599
Growth and Income............................. 28,906,754 2,843,279 (273,341) 31,476,692
Equity........................................ 509,879,135 167,050,529 (14,303,235) 662,626,429
Equity Income................................. 13,296,917 676,402 (84,850) 13,888,469
Capital Appreciation.......................... 11,628,504 983,372 (210,513) 12,401,363
Small Company Growth.......................... 5,049,478 821,047 (71,827) 5,798,698
Small Company Value........................... 361,998,743 115,618,137 (26,252,847) 451,364,033
International Growth.......................... 94,607,139 8,659,646 (5,954,890) 97,311,895
High-Yield Bond............................... 126,829,261 1,052,808 (6,699,892) 121,182,177
Managed....................................... 2,100,525,583 475,500,770 (23,012,365) 2,553,013,988
</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. These
reclassifications have no effect on net assets or net asset values per share.
Any taxable gain remaining at fiscal year end is distributed in the following
year.
7. SUBSEQUENT EVENTS
On July 15, 1999, the Trust added two new Portfolios -- Multi-Cap Growth
and Balanced.
In August 1999, the Trust and another mutual fund under common control
obtained a $50 million line of credit for short term liquidity purposes.
180
<PAGE> 197
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.
181
<PAGE> 198
(This page intentionally left blank)
182
<PAGE> 199
[MONY LOGO] THE MONY GROUP ------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 8048
New York, New York
------------------
MONY LIFE INSURANCE COMPANY
Administrative Offices
1740 Broadway
New York, NY 10019
A member of The MONY Group
1400SSL (8/99)
