<PAGE> 1
MONY SERIES FUND, INC.
PROSPECTUS
DATED MAY 1, 2000
MONY Series Fund, Inc. provides a wide range of investment options through its
seven separate portfolios. The portfolios are:
EQUITY INCOME PORTFOLIO
EQUITY GROWTH PORTFOLIO
INTERMEDIATE TERM BOND PORTFOLIO
LONG TERM BOND PORTFOLIO
GOVERNMENT SECURITIES PORTFOLIO
MONEY MARKET PORTFOLIO
DIVERSIFIED PORTFOLIO
MONY SERIES FUND, INC. PORTFOLIOS ARE NOT AVAILABLE DIRECTLY TO INDIVIDUAL
INVESTORS BUT MAY BE OFFERED ONLY THROUGH CERTAIN INSURANCE PRODUCTS AND PENSION
AND RETIREMENT PLANS.
AS WITH ALL MUTUAL FUNDS, THE SECURITIES AND EXCHANGE COMMISSION DOES NOT
GUARANTEE THAT THE INFORMATION IN THIS PROSPECTUS IS ACCURATE OR COMPLETE, NOR
HAS IT JUDGED THIS FUND FOR INVESTMENT MERIT. IT IS A CRIMINAL OFFENSE TO STATE
OTHERWISE.
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MONY SERIES FUND, INC.
PROSPECTUS
DATED MAY 1, 2000
NO PERSON MAY GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS NOT
CONTAINED IN THIS PROSPECTUS. IF ANY OTHER INFORMATION IS GIVEN OR OTHER
REPRESENTATIONS ARE MADE, YOU MUST NOT RELY ON THEM AS HAVING BEEN AUTHORIZED BY
THE FUND OR THE INVESTMENT ADVISER. THIS PROSPECTUS IS NOT AN OFFER IN ANY STATE
WHERE SUCH OFFERING MAY NOT LAWFULLY BE MADE.
CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C>
THE FUND.................................................... 1
Portfolio Information Key................................. 1
Equity Income Portfolio................................... 2
Equity Growth Portfolio................................... 4
Intermediate Term Bond Portfolio.......................... 6
Long Term Bond Portfolio.................................. 8
Government Securities Portfolio........................... 10
Money Market Portfolio.................................... 12
Diversified Portfolio..................................... 14
Financial Highlights...................................... 16
MANAGEMENT OF THE FUND...................................... 23
Investment Adviser........................................ 23
Custodian, Transfer Agent and Dividend Disbursing Agent... 24
Year 2000 Issue........................................... 24
Legal Proceedings......................................... 25
PURCHASE AND REDEMPTION OF SHARES........................... 25
DIVIDENDS, DISTRIBUTIONS AND TAXES.......................... 25
SHARES IN THE FUND.......................................... 26
THE ACCOUNTS AND THE CONTRACTS.............................. 27
STATE LAW RESTRICTIONS...................................... 27
DETERMINATION OF NET ASSET VALUE............................ 28
Valuation of Equity Income and Equity Growth Portfolios... 28
Valuation of Intermediate Term Bond, Long Term Bond and
Government Securities Portfolios....................... 29
Valuation of Money Market Portfolio....................... 29
Valuation of Diversified Portfolio........................ 30
Appendix A.................................................. A-1
Appendix B.................................................. B-1
</TABLE>
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THE FUND
MONY Series Fund, Inc. (the "Fund") currently has seven (7) separate
portfolios. Each portfolio is in effect a separate investment fund for
investment and federal tax purposes. In other respects the Fund is treated as
one entity. For more detailed information, see "Shares in the Fund," at page 26.
Information on each of the portfolios of the Fund is provided below.
PORTFOLIO INFORMATION KEY
Investment Objective
The portfolio's particular investment goals.
Investment Strategies
The strategies it intends to use in pursuing these investment objectives
and the primary types of securities in which the portfolio invests.
Risk Factors
The major risk factors associated with the portfolio.
Investment Adviser Fees
The investment adviser fee for each portfolio.
Portfolio Management
The individual or group (including sub-advisers, if any) designated by the
investment adviser to handle the portfolio's day-to-day management.
Performance Bar Chart and Table
Provides information on returns over a period of time.
Financial Highlights
A table showing the Fund's financial performance for up to ten years, by
portfolio. A bar chart showing total return allows you to compare the
portfolio's historical risk level to those of other funds.
1
<PAGE> 6
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The investment objective is capital appreciation combined
with a high level of current income. The investment objectives may only be
changed with shareholder approval.
INVESTMENT STRATEGIES This is a stock portfolio that invests in companies with
above average dividend yields. Dividend yield relative to the Standard and
Poor's ("S&P") 500 Index average is used as a discipline and measure of value in
selecting stocks for the portfolio. To qualify for purchase a stock's yield must
be greater than the S&P yield. The effect of this discipline is that a stock
whose price rises faster than its dividend increases, is sold. They will
generally be listed on the New York Stock Exchange, although some may be traded
over-the-counter. Primarily the fund will be invested in common stocks, but some
convertible instruments and short-term obligations may be used. The portfolio
may take a temporary defensive position in attempting to respond to adverse
market conditions by investing in short-term instruments of the type invested in
by the Money Market Portfolio. Only a small percentage of the portfolio will be
temporarily invested in such instruments and that alone is unlikely to impact
the ability of the portfolio to meet its objective.
Currently, the portfolio does not engage in active and frequent trading of
portfolio securities to achieve its investment objective. However, if at any
time the portfolio were to engage in such active and frequent trading, it may
result in the generation of capital gains in the portfolio. Since the only
shareholders of the portfolio will be MONY Life Insurance Company and MONY Life
Insurance Company of America, there is no discussion in this Prospectus of the
federal income tax consequences at the shareholder level. For information
concerning the federal tax consequences to Contract holders, see the attached
prospectus for the Contracts. Higher portfolio turnover (e.g. over 100% per
year) may result from active and frequent trading. Higher portfolio turnover
will cause the portfolio to incur additional transaction costs.
RISK FACTORS Stocks that have above average yields generally have larger market
capitalizations, are more mature and should be less volatile than those held in
the Equity Growth Portfolio. A high dividend yield provides some current income,
represents a measure of value and generally dampens price volatility. Even
though the portfolio's stocks may be less volatile than the market, during
periods of market decline they will also decline. The loss of money is a risk of
investing in the portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.50% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
2
<PAGE> 7
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Equity Income Portfolio by showing changes in the portfolio's
performance from year-to-year over a ten-year period and by showing how the
portfolio's average annual returns for one, five and ten years compare to those
of a broad-based securities market index. Performance does not include separate
account charges imposed by the insurance companies that write annuity contracts
and variable life policies. If these charges were included they would have
reduced performance. How the portfolio has performed in the past is not
necessarily an indication of how the portfolio will perform in the future.
Assumes reinvestment of dividends.
[EQUITY INCOME GRAPH]
<TABLE>
<CAPTION>
EQUITY INCOME PORTFOLIO
-----------------------
<S> <C>
1990 -6.73%
1991 20.31%
1992 10.31%
1993 14.14%
1994 0.78%
1995 33.12%
1996 19.76%
1997 31.26%
1998 12.63%
1999 8.04%
</TABLE>
During the ten-year period shown in the bar chart, the highest return for a
quarter was 16.14% (quarter ending June 30, 1997) and the lowest return for a
quarter was -11.94% (quarter ending September 30, 1990).
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Income Portfolio 8.04% 20.56% 13.75%
- -----------------------------------------------------------------------------------------------
S & P 500 Index* 21.03% 28.55% 18.21%
- -----------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* This unmanaged broad-based index includes 500 companies which tend to be
leaders in important industries within the U.S. economy. It includes
reinvested dividends. An index does not have an investment advisor and does
not pay commissions or expenses. If an index had expenses, its performance
would be lower. One cannot invest directly in an index.
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
3
<PAGE> 8
EQUITY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The investment objective is capital appreciation. The
investment objective may only be changed with shareholder approval.
INVESTMENT STRATEGIES This is a stock portfolio that invests in companies with
above average earnings growth. The primary consideration in stock selection is
the rate of earnings growth relative to the price. The portfolio seeks companies
that have a specific advantage (products, patents, sales force, management etc.)
which enables them to grow at a superior pace. They generally achieve their
sales growth by selling more units, rather than depending on price increases
alone. As many of the fastest growing companies currently are traded
over-the-counter, this portfolio will have correspondingly larger holdings of
over-the-counter stocks. The portfolio may take a temporary defensive position
in attempting to respond to adverse market conditions by investing in short term
instruments of the type invested in by the Money Market Portfolio. Only a small
percentage of the portfolio will be temporarily invested in such instruments and
that alone is unlikely to impact the ability of the portfolio to meet its
objective.
Currently, the portfolio does not engage in active and frequent trading of
portfolio securities to achieve its investment objective. However, if at any
time the portfolio were to engage in such active and frequent trading, it may
result in the generation of capital gains in the portfolio. Since the only
shareholders of the portfolio will be MONY Life Insurance Company and MONY Life
Insurance Company of America, there is no discussion in this Prospectus of the
federal income tax consequences at the shareholder level. For information
concerning the federal tax consequences to Contract holders, see the attached
prospectus for the Contracts. Higher portfolio turnover (e.g. over 100% per
year) may result from active and frequent trading. Higher portfolio turnover
will cause the portfolio to incur additional transaction costs.
RISK FACTORS In addition to general market risk, because this portfolio holds
smaller, newer companies that operate in fast changing environments, it will be
more volatile in both rising and falling markets. Stocks that have higher
earnings growth rates are generally in newer, more dynamic industries. They
reinvest earnings in the business rather than pay dividends and sell at higher
price to earnings ratios. Expectations are higher with these companies and their
investors want them to demonstrate quarter by quarter increases and can be quick
to sell if they disappoint. Individual stock risk and reward will be greater
than in the Equity Income Portfolio. The loss of money is a risk of investing in
the Portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.50% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
4
<PAGE> 9
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Equity Growth Portfolio by showing changes in the portfolio's
performance from year-to-year over a ten-year period and by showing how the
portfolio's average annual returns for one, five and ten years compare to those
of a broad-based securities market index. Performance does not include separate
account charges imposed by the insurance companies that write annuity contracts
and variable life policies. If these charges were included they would have
reduced performance. How the portfolio has performed in the past is not
necessarily an indication of how the portfolio will perform in the future.
Assumes reinvestment of dividends.
[EQUITY GROWTH PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO
-----------------------
<S> <C>
1990 -1.45%
1991 34.66%
1992 -0.84%
1993 9.71%
1994 2.15%
1995 30.54%
1996 20.95%
1997 30.68%
1998 25.46%
1999 37.98%
</TABLE>
During the ten-year period shown in the bar chart, the highest return for a
quarter was 22.27% (quarter ending December 31, 1999) and the lowest return for
a quarter was -15.46% (quarter ending September 30, 1990).
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Growth Portfolio 37.98% 28.99% 18.06%
- -----------------------------------------------------------------------------------------------
S & P 500 Index* 21.03% 28.55% 18.21%
- -----------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* This unmanaged broad-based index includes 500 companies which tend to be
leaders in important industries within the U.S. economy. It includes
reinvested dividends. An index does not have an investment advisor and does
not pay commissions or expenses. If an index had expenses, its performance
would be lower. One cannot invest directly in an index.
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
5
<PAGE> 10
INTERMEDIATE TERM BOND PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The portfolio is a bond account that seeks to maximize
income and capital appreciation through the investment in intermediate-maturity
debt obligations. The investment objective may only be change with shareholder
approval.
INVESTMENT STRATEGIES The portfolio seeks to achieve its investment objective
by investing in investment-grade fixed-income securities issued by a diverse mix
of corporations, the U.S. Government and its agencies or instrumentalities, as
well as mortgage-backed and asset-backed securities. The portfolio is expected
to have a dollar weighted average maturity between four and eight years under
most circumstances. The portfolio's benchmark objectives are to outperform the
Lehman Brothers Intermediate Government/Corporate Index and competing funds. All
securities in the portfolio will be investment-grade. An investment-grade
security carries a minimum rating of credit quality issued by an independent
rating agency at the time of purchase. Specific securities in the portfolio can
have expected maturities as short as one day, or as long as 30 years or more,
but the portfolio as a whole is expected to have an average maturity of four to
eight years. The portfolio will not take temporary defensive positions
inconsistent with its principal investment strategies.
Currently, the portfolio does not engage in active and frequent trading of
portfolio securities to achieve its investment objective. However, if at any
time the portfolio were to engage in such active and frequent trading, it may
result in the generation of capital gains in the portfolio. Since the only
shareholders of the portfolio will be MONY Life Insurance Company and MONY Life
Insurance Company of America, there is no discussion in this Prospectus of the
federal income tax consequences at the shareholder level. For information
concerning the federal tax consequences to Contract holders, see the attached
prospectus for the Contracts. Higher portfolio turnover (e.g. over 100% per
year) may result from active and frequent trading. Higher portfolio turnover
will cause the portfolio to incur additional transaction costs.
RISK FACTORS As with any fixed-income fund, the value of investments in the
portfolio can be expected to change with daily changes in the market level of
interest rates. The portfolio is expected to have an effective duration between
2 and 4 years. In general, bond prices move inversely with interest rate
changes. Duration is a common measurement of how sensitive a bond price is to a
movement in interest rates. Additionally, while the portfolio will invest only
in investment-grade securities, market prices for those securities can still
vary independent of interest rate changes, depending on the market evaluation of
general credit conditions and liquidity. The loss of money is a risk of
investing in the portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.50% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
6
<PAGE> 11
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Intermediate Term Bond Portfolio by showing changes in the
portfolio's performance from year-to-year over a ten-year period and by showing
how the portfolio's average annual returns for one, five and ten years compare
to those of a broad-based securities market index. Performance does not include
separate account charges imposed by the insurance companies that write annuity
contracts and variable life policies. If these charges were included they would
have reduced performance. How the portfolio has performed in the past is not
necessarily an indication of how the portfolio will perform in the future.
Assumes reinvestment of dividends.
[INTERMEDIATE TERM BOND PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
INTERMEDIATE TERM BOND PORTFOLIO
--------------------------------
<S> <C>
1990 6.90%
1991 15.27%
1992 6.85%
1993 7.84%
1994 -1.52%
1995 14.82%
1996 3.69%
1997 7.70%
1998 7.44%
1999 0.23%
</TABLE>
During the ten-year period shown in the bar chart, the highest return for a
quarter was 5.02% (quarter ending June 30, 1995) and the lowest return for a
quarter was -1.90% (quarter ending March 31, 1994).
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Intermediate Term Bond Portfolio 0.23% 6.67% 6.82%
- ------------------------------------------------------------------------------------------------
Lehman Brothers Intermediate Gov/Corp Index* 0.39% 7.10% 7.26%
- ------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* This index includes securities issued by the U.S. Government and its agencies,
and publicly issued U.S. Corporate and Yankee debentures and secured notes
meeting minimum quality and issuance requirements and having a maturity of
more than 1 year but less than 10 years. An index does not have an investment
advisor and does not pay commissions or expenses. If an index had expenses,
its performance would be lower. One cannot invest directly in an index.
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
7
<PAGE> 12
LONG TERM BOND PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The portfolio is a bond account that seeks to maximize
income and capital appreciation through the investment in long-maturity debt
obligations. The portfolio's benchmark objectives are to outperform the Lehman
Brothers Long Government/Corporate Index and other competing funds. The
investment objectives may only be changed with shareholder approval.
INVESTMENT STRATEGIES The portfolio seeks to achieve its investment objective
by investing in investment-grade fixed-income securities issued by a diverse mix
of corporations, the U.S. Government and its agencies or instrumentalities, as
well as mortgage-backed and asset-backed securities. The portfolio is expected
to have a dollar weighted average maturity of more than eight years under most
circumstances. All securities in the portfolio will be investment-grade. An
investment-grade security carries a minimum rating of credit quality issued by
an independent rating agency at the time of purchase. Specific securities in the
portfolio can have expected maturities as short as one day, or as long as 30
years or more, but the portfolio as a whole is expected to have an average
maturity of longer than eight years. The portfolio will not take temporary
defensive positions inconsistent with its principal investment strategy.
Currently, the portfolio does not engage in active and frequent trading of
portfolio securities to achieve its investment objective. However, if at any
time the portfolio were to engage in such active and frequent trading, it may
result in the generation of capital gains in the portfolio. Since the only
shareholders of the portfolio will be MONY Life Insurance Company and MONY Life
Insurance Company of America, there is no discussion in this Prospectus of the
federal income tax consequences at the shareholder level. For information
concerning the federal tax consequences to Contract holders, see the attached
prospectus for the Contracts. Higher portfolio turnover (e.g. over 100% per
year) may result from active and frequent trading. Higher portfolio turnover
will cause the portfolio to incur additional transaction costs.
RISK FACTORS As with any fixed-income fund, the value of the investments in the
portfolio can be expected to change with daily changes in the market level of
interest rates. The portfolio is expected to have an effective duration between
8 and 15 years. In general, bond prices move inversely with interest rate
changes. Duration is a common measurement of how sensitive a bond price is to a
movement in interest rates. Higher durations can be expected to be more price
sensitive. Additionally, while the portfolio will invest only in
investment-grade securities, market prices for those securities can still vary
independent of interest rate changes, depending on the market evaluation of
general credit conditions and liquidity. The loss of money is a risk of
investing in the portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.50% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
8
<PAGE> 13
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Long Term Bond Portfolio by showing changes in the portfolio's
performance from year-to-year over a ten-year period and by showing how the
portfolio's average annual returns for one, five and ten years compare to those
of a broad-based securities market index. Performance does not include separate
account charges imposed by the insurance companies that write annuity contracts
and variable life policies. If these charges were included they would have
reduced performance. How the portfolio has performed in the past is not
necessarily an indication of how the portfolio will perform in the future.
Assumes reinvestment of dividends.
[LONG TERM BOND PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
LONG TERM BOND PORTFOLIO
------------------------
<S> <C>
1990 6.26%
1991 17.57%
1992 8.79%
1993 14.21%
1994 -6.14%
1995 30.04%
1996 -0.31%
1997 13.44%
1998 10.08%
1999 -7.60%
</TABLE>
During the ten-year period shown in the bar chart, the highest return for a
quarter was 11.44% (quarter ending June 30, 1989) and the lowest return for a
quarter was -6.29% (quarter ending March 31, 1996).
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Long Term Bond Portfolio -7.60% 8.39% 8.11%
- ----------------------------------------------------------------------------------------------
Lehman Brothers Long Gov/Corp Index* -7.65% 8.99% 8.65%
- ----------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* This index includes securities issued by the U.S. Government and its agencies,
and publicly issued U.S. Corporate and Yankee debentures and secured notes
meeting minimum quality and issuance requirements and having a maturity longer
than 10 years. An index does not have an investment advisor and does not pay
commissions or expenses. If an index had expenses, its performance would be
lower. One cannot invest directly in an index.
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
9
<PAGE> 14
GOVERNMENT SECURITIES PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The portfolio is a bond account that seeks to maximize
income and capital appreciation through the investment in the highest credit
quality debt obligations. The portfolio's benchmark objectives are to outperform
the Lehman Brothers Intermediate Government Index and other competing funds. The
investment objective may only be changed with shareholder approval.
INVESTMENT STRATEGIES The portfolio seeks to achieve its investment objective
by investing in bonds, notes and other obligations either issued or guaranteed
by the U.S. Government, its agencies or instrumentalities. This may include
obligations such as mortgage-backed securities that carry full agency or
instrumentality guarantees. Specific securities in the portfolio can have
expected maturities as short as one day or as long as 30 years or more, but the
portfolio as a whole is expected to have an average maturity of four to eight
years. The portfolio will not take temporary defensive positions inconsistent
with its principal investment strategies.
Currently, the portfolio does not engage in active and frequent trading of
portfolio securities to achieve its investment objective. However, if at any
time the portfolio were to engage in such active and frequent trading, it may
result in the generation of capital gains in the portfolio. Since the only
shareholders of the portfolio will be MONY Life Insurance Company and MONY Life
Insurance Company of America, there is no discussion in this Prospectus of the
federal income tax consequences at the shareholder level. For information
concerning the federal tax consequences to Contract holders, see the attached
prospectus for the Contracts. Higher portfolio turnover (e.g. over 100% per
year) may result from active and frequent trading. Higher portfolio turnover
will cause the portfolio to incur additional transaction costs.
RISK FACTORS While the portfolio invests in securities of the highest possible
credit quality, the value of those investments can still be expected to change
with daily changes in the market level of interest rates. The portfolio is
expected to have an effective duration between 2 and 4 years. In general, bond
prices move inversely with interest rate changes. Duration is a common
measurement of how sensitive a bond price is to movement in interest rates. The
U.S. Government or its agencies do not guarantee investments in the portfolio.
The loss of money is a risk of investing in the portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.50% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
10
<PAGE> 15
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Government Securities Portfolio by showing changes in the
portfolio's performance from year-to-year from May 1, 1991 to December 31, 1999
and by showing how the portfolio's average annual returns for one, five and
since inception compare to those of a broad-based securities market index.
Performance does not include separate account charges imposed by the insurance
companies that write annuity contracts and variable life policies. If these
charges were included they would have reduced performance. How the portfolio has
performed in the past is not necessarily an indication of how the portfolio will
perform in the future. Assumes reinvestment of dividends.
[GOVERNMENT SECURITIES PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
-------------------------------
<S> <C>
1991 9.70%
1992 7.01%
1993 8.18%
1994 -2.68%
1995 10.89%
1996 3.62%
1997 7.18%
1998 6.85%
1999 0.66%
</TABLE>
During the period since inception shown in the bar chart, the highest return for
a quarter was 5.11% (quarter ending December 31, 1991) and the lowest return for
a quarter was -1.87% (quarter ending March 31, 1992).
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS SINCE
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS INCEPTION
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Government Securities Portfolio 0.66% 5.78% 5.98%
- -------------------------------------------------------------------------------------------------
Lehman Brothers Intermediate US Gov Index* 0.79% 6.93% 6.71%
- -------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* This index includes securities issued by the U.S. Government and its agencies
having a maturity of more than 1 year but less than 10 years. An index does
not have an investment advisor and does not pay commissions or expenses. If an
index had expenses, its performance would be lower. One cannot invest directly
in an index.
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
11
<PAGE> 16
MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The portfolio seeks to maximize current income while
preserving capital and maintaining liquidity. The investment objective may only
be changed with shareholder approval.
INVESTMENT STRATEGIES To pursue its investment objective, the portfolio
invests primarily in high quality short-term money market instruments. The
portfolio invests primarily in U.S. dollar-denominated issues of corporations,
U.S. Government and agency obligations, and asset-backed securities with
remaining maturities of 397 days or less. The dollar-weighted average life to
maturity of the securities held in the portfolio will be 90 days or less. These
securities include commercial paper, bankers' acceptances, certificates of
deposit, time deposits, and other debt obligations. The portfolio holds fixed
and floating interest rate instruments. The portfolio does not hold more than 5%
of its assets in any one issuer. The portfolio will not take temporary defensive
positions inconsistent with its principal investment strategies.
RISK FACTORS As with any money market fund, the fund will be subject to
fluctuations in the level of current income due to reinvestment risk. Securities
in the portfolio may not yield as high a level of current income as securities
with longer maturities or of lower quality. Such other securities generally
possess a lesser degree of liquidity and greater market risk. The portfolio
seeks to minimize credit risk through careful selection of securities of
approved issuers. Nevertheless, reinvestment risk and credit risk cannot be
eliminated and these factors will affect the net asset value of the fund. An
investment in the portfolio is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the portfolio
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.40% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
12
<PAGE> 17
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Money Market portfolio by showing changes in the portfolio's
performance from year-to-year over a ten-year period and by showing the
portfolio's average annual returns for one, five and ten years. Performance does
not include separate account charges imposed by the insurance companies that
write annuity contracts and variable life policies. If these charges were
included they would have reduced performance.
How the Portfolio has performed in the past is not necessarily an indication of
how the Portfolio will perform in the future. Assumes reinvestment of dividends.
[MONEY MARKET PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
----------------------
<S> <C>
1990 7.97%
1991 5.74%
1992 3.38%
1993 2.78%
1994 3.89%
1995 5.64%
1996 5.12%
1997 5.27%
1998 5.25%
1999 4.98%
</TABLE>
During the ten-year period shown in the bar chart, the highest return for a
quarter was 1.93% (quarter ending September 30, 1990) and the lowest return for
a quarter was 0.66% (quarter ending June 30, 1993).
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS 10
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS YEARS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market Portfolio 4.98% 5.25% 4.99%
- -------------------------------------------------------------------------------------------------
</TABLE>
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
13
<PAGE> 18
DIVERSIFIED PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE The Diversified Portfolio seeks to maximize income and
capital appreciation. The investment objective may only be changed with
shareholder approval.
INVESTMENT STRATEGIES The portfolio invests in a diversified mix of common
stocks of U.S. and foreign companies, investment-grade corporate and government
bonds, and money-market instruments. The mix of securities in the portfolio will
reflect the relative attractiveness of stocks, bonds, or money-market
instruments as determined by the portfolio manager. The portfolio will not take
temporary defensive positions inconsistent with its principal investment
strategies.
Currently, the portfolio does not engage in active and frequent trading of
portfolio securities to achieve its investment objective. However, if at any
time the portfolio were to engage in such active and frequent trading, it may
result in the generation of capital gains in the portfolio. Since the only
shareholders of the portfolio will be MONY Life Insurance Company and MONY Life
Insurance Company of America, there is no discussion in this Prospectus of the
federal income tax consequences at the shareholder level. For information
concerning the federal tax consequences to Contract holders, see the attached
prospectus for the Contracts. Higher portfolio turnover (e.g. over 100% per
year) may result from active and frequent trading. Higher portfolio turnover
will cause the portfolio to incur additional transaction costs.
RISK FACTORS The value of the investments in the portfolio will fluctuate with
movements in the stock and bond markets depending on the portfolio mix selected
by the manager. The loss of money is a risk of investing in the portfolio.
INVESTMENT ADVISER FEE Annual rate of 0.50% of the first $400 million, 0.35% of
the next $400 million, and 0.30% in excess of $800 million of the portfolio's
aggregate average daily net assets.
14
<PAGE> 19
PERFORMANCE BAR CHART AND TABLE
The bar chart and table shown below provide an indication of the risks of
investing in the Diversified Portfolio by showing changes in the portfolio's
performance from year-to-year over a ten-year period and by showing how the
portfolio's average annual returns for one, five and ten years compare to those
of a broad-based securities market index. Performance does not include separate
account charges imposed by the insurance companies that write annuity contracts
and variable life policies. If these charges were included they would have
reduced performance. How the portfolio has performed in the past is not
necessarily an indication of how the portfolio will perform in the future.
Assumes reinvestment of dividends.
[DIVERSIFIED PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
DIVERSIFIED PORTFOLIO
---------------------
<S> <C>
1990 2.44%
1991 20.34%
1992 0.99%
1993 10.92%
1994 1.03%
1995 26.32%
1996 14.44%
1997 24.97%
1998 23.69%
1999 30.53%
</TABLE>
During the ten-year period shown in the bar chart, the highest return for a
quarter was 17.47% (quarter ending December 31, 1999) and the lowest return for
a quarter was -7.10% (quarter ending September 30, 1998).
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDING DECEMBER 31, 1999) 1 YEAR 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Diversified Portfolio 30.53% 23.87% 15.08%
- ----------------------------------------------------------------------------------------------
S & P 500 Index* 21.03% 28.55% 18.21%
- ----------------------------------------------------------------------------------------------
</TABLE>
- ---------------
* This unmanaged broad-based index includes 500 companies which tend to be
leaders in important industries within the U.S. economy. It includes
reinvested dividends. An index does not have an investment advisor and does
not pay commissions or expenses. If an index had expenses, its performance
would be lower. One cannot invest directly in an index.
PORTFOLIO MANAGEMENT MONY Life Insurance Company of America manages the
portfolio. Investment decisions are made by a committee.
15
<PAGE> 20
EQUITY INCOME PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below are highlights of
the operations of the Equity Income Portfolio. Additional financial information
is contained in the Statement of Additional Information of the Fund and in its
Annual Report. Both of these documents are available at the address or phone
number on the back cover of this prospectus. The Annual Report also contains a
discussion of the performance of the Fund during 1999 as well as line graphs
which show the value at inception and for each year after inception of a $10,000
investment made in each portfolio of the Fund. These graphs also show the
performance of an investment over the same period in securities that comprise a
broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 25.95 $ 27.10 $ 23.44 $ 19.61 $ 15.53
------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss).................... 0.38(c) 0.78 0.61 0.98 0.69
Net realized and unrealized gain (loss) on
investments................................... 1.90 2.62 5.96 2.89 4.45
------- ------- ------- ------- -------
Total from investment operations.............. 2.28 3.40 6.57 3.87 5.14
------- ------- ------- ------- -------
Less distributions
Dividends from net investment income............ (0.51) (0.88) (1.00) (0.04) (0.65)
Distributions from net capital gains............ (4.30) (3.67) (1.91) -- (0.41)
------- ------- ------- ------- -------
Total distributions........................... (4.81) (4.55) (2.91) (0.04) (1.06)
------- ------- ------- ------- -------
Net asset value, end of period.................... $ 23.42 $ 25.95 $ 27.10 $ 23.44 $ 19.61
======= ======= ======= ======= =======
Total return.................................. 8.04% 12.63% 31.26% 19.76% 33.12%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)................... $18,460 $19,801 $20,721 $18,572 $18,091
Ratio of expenses (excluding expense reduction) to
average net assets.............................. 0.70% 0.76% 0.59% 0.55% 0.56%
Ratio of expenses to average net assets........... 0.70% 0.75% 0.58% 0.54% 0.55%
Ratio of net investment income (loss) (excluding
expense reduction) to average net assets........ 1.56% 1.86% 2.20% 2.78% 3.54%
Ratio of net investment income (loss) to average
net assets...................................... 1.57% 1.88% 2.20% 2.79% 3.54%
Portfolio turnover................................ 27% 28% 29% 29% 27%
</TABLE>
- ---------------
(c) Based on average shares outstanding.
16
<PAGE> 21
EQUITY GROWTH PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below is highlights of
the operations of the Equity Growth Portfolio. Additional financial information
is contained in the Statement of Additional Information of the Fund and in its
Annual Report. Both of these documents are available at the address or phone
number on the back cover of this prospectus. The Annual Report also contains a
discussion of the performance of the Fund during 1999 as well as line graphs
which show the value at inception and for each year after inception of a $10,000
investment made in each portfolio of the Fund. These graphs also show the
performance of an investment over the same period in securities that comprise a
broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................. $ 38.20 $ 36.08 $ 30.37 $ 25.11 $ 20.59
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss)....................... (0.20)(c) 1.50 0.11 0.96 0.39
Net realized and unrealized gain (loss) on
investments...................................... 14.05 6.88 8.42 4.30 5.90
-------- -------- -------- -------- --------
Total from investment operations................. 13.85 8.38 8.53 5.26 6.29
-------- -------- -------- -------- --------
Less distributions
Dividends from net investment income............... -- (1.62) (0.96) -- (0.39)
Distributions from net capital gains............... (3.40) (4.64) (1.86) -- (1.34)
Distributions in excess of realized capital gain... -- -- -- -- (0.04)
-------- -------- -------- -------- --------
Total distributions.............................. (3.40) (6.26) (2.82) 0.00 (1.77)
-------- -------- -------- -------- --------
Net asset value, end of period....................... $ 48.65 $ 38.20 $ 36.08 $ 30.37 $ 25.11
======== ======== ======== ======== ========
Total return..................................... 37.98% 25.46% 30.68% 20.95% 30.54%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)...................... $ 3,362 $ 3,109 $ 2,799 $ 2,155 $ 1,874
Ratio of expenses (excluding expense reduction) to
average net assets................................. 1.49% 1.93% 1.33% 1.22% 1.28%
Ratio of expenses to average net assets.............. 1.46% 1.82% 1.23% 1.12% 1.23%
Ratio of net investment income (loss) (excluding
expense reduction) to average net assets........... (0.53)% (0.58)% 0.24% 0.53% 1.49%
Ratio of net investment income (loss) to average net
assets............................................. (0.49)% (0.48)% 0.34% 0.62% 1.54%
Portfolio turnover................................... 31% 38% 46% 44% 38%
</TABLE>
- ---------------
(c) Based on average shares outstanding.
17
<PAGE> 22
INTERMEDIATE TERM BOND PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below is
highlights of the operations of the Intermediate Term Bond Portfolio. Additional
financial information is contained in the Statement of Additional Information of
the Fund and in its Annual Report. Both of these documents are available at the
address or phone number on the back cover of this prospectus. The Annual Report
also contains a discussion of the performance of the Fund during 1999 as well as
line graphs which show the value at inception and for each year after inception
of a $10,000 investment made in each portfolio of the Fund. These graphs also
show the performance of an investment over the same period in securities that
comprise a broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 11.33 $ 11.12 $ 10.96 $ 10.57 $ 9.75
------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss)................ 0.61(c) 0.51 0.63 0.62 0.63
Net realized and unrealized gain (loss) on
investments............................... (0.59) 0.28 0.16 (0.23) 0.82
------- ------- ------- ------- -------
Total from investment operations.......... 0.02 0.79 0.79 0.39 1.45
------- ------- ------- ------- -------
Less distributions
Dividends from net investment income........ (0.53) (0.58) (0.63) -- (0.63)
Distributions from net capital gains........ -- -- -- -- --
------- ------- ------- ------- -------
Total distributions....................... (0.53) (0.58) (0.63) 0.00 (0.63)
------- ------- ------- ------- -------
Net asset value, end of period................ $ 10.82 $ 11.33 $ 11.12 $ 10.96 $ 10.57
======= ======= ======= ======= =======
Total return.............................. 0.23% 7.44% 7.70% 3.69% 14.82%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)............... $55,595 $59,531 $44,217 $40,045 $37,520
Ratio of expenses (excluding expense
reduction) to average net assets............ 0.57% 0.62% 0.51% 0.48% 0.49%
Ratio of expenses to average net assets....... 0.57% 0.61% 0.51% 0.47% 0.49%
Ratio of net investment income (loss)
(excluding expense reduction) to average net
assets...................................... 5.50% 5.60% 5.97% 5.87% 6.10%
Ratio of net investment income (loss) to
average net assets.......................... 5.50% 5.61% 5.98% 5.88% 6.10%
Portfolio turnover............................ 40% 18% 79% 34% 32%
</TABLE>
- ---------------
(c) Based on average shares outstanding.
18
<PAGE> 23
LONG TERM BOND PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below is highlights of
the operations of the Long Term Bond Portfolio. Additional financial information
is contained in the Statement of Additional Information of the Fund and in its
Annual Report. Both of these documents are available at the address or phone
number on the back cover of this prospectus. The Annual Report also contains a
discussion of the performance of the Fund during 1999 as well as line graphs
which show the value at inception and for each year after inception of a $10,000
investment made in each portfolio of the Fund. These graphs also show the
performance of an investment over the same period in securities that comprise a
broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 14.17 $ 13.64 $ 12.84 $ 12.88 $ 10.47
-------- -------- ------- ------- -------
Income from investment operations:
Net investment income (loss).............. 0.74(c) 0.56 0.76 0.79 0.74
Net realized and unrealized gain (loss) on
investments............................. (1.80) 0.75 0.83 (0.83) 2.41
-------- -------- ------- ------- -------
Total from investment operations........ (1.06) 1.31 1.59 (0.04) 3.15
-------- -------- ------- ------- -------
Less distributions
Dividends from net investment income...... (0.53) (0.72) (0.79) -- (0.74)
Distributions from net capital gains...... (0.26) (0.06) -- -- --
-------- -------- ------- ------- -------
Total distributions..................... (0.79) (0.78) (0.79) 0.00 (0.74)
-------- -------- ------- ------- -------
Net asset value, end of period.............. $ 12.32 $ 14.17 $ 13.64 $ 12.84 $ 12.88
======== ======== ======= ======= =======
Total return............................ (7.60)% 10.08% 13.44% (0.31)% 30.04%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)............. $105,317 $122,957 $75,353 $62,099 $62,018
Ratio of expenses (excluding expense
reduction) to average net assets.......... 0.55% 0.58% 0.49% 0.46% 0.48%
Ratio of expenses to average net assets..... 0.55% 0.57% 0.49% 0.46% 0.48%
Ratio of net investment income (loss)
(excluding expense reduction) to average
net assets................................ 5.68% 5.50% 6.33% 6.40% 6.58%
Ratio of net investment income (loss) to
average net assets........................ 5.68% 5.50% 6.33% 6.40% 6.58%
Portfolio turnover.......................... 43% 41% 37% 60% 79%
</TABLE>
- ---------------
(c) Based on average shares outstanding.
19
<PAGE> 24
GOVERNMENT SECURITIES PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below is
highlights of the operations of the Government Securities Portfolio. Additional
financial information is contained in the Statement of Additional Information of
the Fund and in its Annual Report. Both of these documents are available at the
address or phone number on the back cover of this prospectus. The Annual Report
also contains a discussion of the performance of the Fund during 1999 as well as
line graphs which show the value at inception and for each year after inception
of a $10,000 investment made in each portfolio of the Fund. These graphs also
show the performance of an investment over the same period in securities that
comprise a broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 11.17 $ 10.89 $ 10.58 $ 10.21 $ 9.51
------- ------- ------- ------- ------
Income from investment operations:
Net investment income (loss)............. 0.56(c) 0.33 0.45 0.45 0.34
Net realized and unrealized gain (loss)
on investments......................... (0.49) 0.39 0.28 (0.08) 0.70
------- ------- ------- ------- ------
Total from investment operations....... 0.07 0.72 0.73 0.37 1.04
------- ------- ------- ------- ------
Less distributions
Dividends from net investment income..... (0.33) (0.44) (0.42) 0.00 (0.34)
Distributions from net capital gains..... 0.00(d) -- -- -- 0.00(d)
------- ------- ------- ------- ------
Total distributions.................... (0.33) (0.44) (0.42) 0.00 (0.34)
------- ------- ------- ------- ------
Net asset value, end of period............. $ 10.91 $ 11.17 $ 10.89 $ 10.58 $10.21
======= ======= ======= ======= ======
Total return........................... 0.66% 6.85% 7.18% 3.62% 10.89%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)............ $57,337 $54,615 $25,066 $16,383 $8,556
Ratio of expenses (excluding expense
reduction) to average net assets......... 0.58% 0.64% 0.56% 0.55% 0.74%
Ratio of expenses to average net assets.... 0.57% 0.62% 0.54% 0.52% 0.70%
Ratio of net investment income (loss)
(excluding expense reduction) to average
net assets............................... 5.08% 5.09% 5.50% 5.56% 6.06%
Ratio of net investment income (loss) to
average net assets....................... 5.09% 5.10% 5.52% 5.59% 6.10%
Portfolio turnover......................... 8% 30% 19% 13% 0%
</TABLE>
- ---------------
(c) Based on average shares outstanding.
(d) Less than $.01 per share.
20
<PAGE> 25
MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below is highlights of
the operations of the Money Market Portfolio. Additional financial information
is contained in the Statement of Additional Information of the Fund and in its
Annual Report. Both of these documents are available at the address or phone
number on the back cover of this prospectus. The Annual Report also contains a
discussion of the performance of the Fund during 1999 as well as line graphs
which show the value at inception and for each year after inception of a $10,000
investment made in each portfolio of the Fund. These graphs also show the
performance of an investment over the same period in securities that comprise a
broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss)........... 0.05 0.05 0.05 0.05 0.05
Net realized and unrealized gain (loss)
on investments....................... -- -- -- -- --
-------- -------- -------- -------- --------
Total from investment operations..... 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- --------
Less distributions
Dividends from net investment income... (0.05) (0.05) (0.05) (0.05) (0.05)
Distributions from net capital gains... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions.................. (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return......................... 4.98% 5.25% 5.27% 5.12% 5.64%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000).......... $336,532 $349,421 $158,286 $144,932 $110,367
Ratio of expenses (excluding expense
reduction) to average net assets....... 0.44% 0.45% 0.46% 0.45% 0.46%
Ratio of expenses to average net
assets................................. 0.44% 0.45% 0.45% 0.44% 0.45%
Ratio of net investment income (loss)
(excluding expense reduction) to
average net assets..................... 4.84% 5.08% 5.11% 4.94% 5.29%
Ratio of net investment income (loss) to
average net assets..................... 4.84% 5.09% 5.11% 4.95% 5.30%
</TABLE>
21
<PAGE> 26
DIVERSIFIED PORTFOLIO FINANCIAL HIGHLIGHTS Set forth below is highlights of the
operations of the Diversified Portfolio. Additional financial information is
contained in the Statement of Additional Information of the Fund and in its
Annual Report. Both of these documents are available at the address or phone
number on the back cover of this prospectus. The Annual Report also contains a
discussion of the performance of the Fund during 1999 as well as line graphs
which show the value at inception and for each year after inception of a $10,000
investment made in each portfolio of the Fund. These graphs also show the
performance of an investment over the same period in securities that comprise a
broad based, unmanaged securities market index.
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............... $19.91 $20.61 $17.99 $15.72 $13.14
------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss)..................... 0.08(c) 1.41 0.34 0.36 0.43
Net realized and unrealized gain (loss) on
investments.................................... 5.60 2.85 3.80 1.91 3.03
------ ------ ------ ------ ------
Total from investment operations............... 5.68 4.26 4.14 2.27 3.46
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income............. (0.08) (1.65) (0.39) 0.00 (0.43)
Distributions from net capital gains............. (2.58) (3.31) (1.13) 0.00 (0.43)
Distributions in excess of realized capital
gain........................................... 0.00 0.00 0.00 0.00 (0.02)
------ ------ ------ ------ ------
Total distributions............................ (2.66) (4.96) (1.52) 0.00 (0.88)
------ ------ ------ ------ ------
Net asset value, end of period..................... $22.93 $19.91 $20.61 $17.99 $15.72
====== ====== ====== ====== ======
Total return................................... 30.53% 23.69% 24.97% 14.44% 26.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000).................... $3,568 $3,280 $3,229 $3,381 $3,272
Ratio of expenses (excluding expense reduction) to
average net assets............................... 1.50% 1.83% 1.10% 0.91% 0.95%
Ratio of expenses to average net assets............ 1.46% 1.75% 1.03% 0.84% 0.91%
Ratio of net investment income (loss) (excluding
expense reduction) to average net assets......... 0.36% 0.32% 1.36% 1.94% 2.65%
Ratio of net investment income (loss) to average
net assets....................................... 0.40% 0.40% 1.43% 2.02% 2.68%
Portfolio turnover................................. 27% 34% 33% 24% 28%
</TABLE>
- ---------------
(c) Based on average shares outstanding.
22
<PAGE> 27
MANAGEMENT OF THE FUND
INVESTMENT ADVISER
The Fund's investment adviser is MONY Life Insurance Company of America
("MONY America"). MONY America's principal business address is 1740 Broadway,
New York, New York 10019. MONY America is a wholly owned subsidiary of MONY Life
Insurance Company ("MONY"). MONY America will carry on the overall day-to-day
management of the seven current portfolios under an Investment Advisory
Agreement with the Fund. It also will provide investment advice and related
services for each of the portfolios. MONY America registered as an investment
adviser under the Investment Advisers Act of 1940 in 1985. Prior to 1985 MONY
America had not performed services as an investment adviser. MONY America has
entered into a Services Agreement with MONY to provide it with personnel,
services, facilities, supplies and equipment in order to carry out many of its
duties. MONY America pays MONY for these services.
Because the Investment Advisory Agreement and the Services Agreement are
interrelated and dependent on each other, MONY may be considered to be an
investment advisor of the Fund for certain federal regulatory purposes. MONY is
registered as an investment adviser under the Investment Advisers Act of 1940.
Its principal business address is 1740 Broadway, New York, New York 10019.
MONY is a life insurance company organized under the laws of New York in
1842 as The Mutual Life Insurance Company of New York. In 1998, The Mutual Life
Insurance Company of New York converted to a stock company through
demutualization and was renamed MONY Life Insurance Company. MONY manages the
investment assets held in its own general account, various separate accounts
established by MONY, and the assets of its employee thrift plan trust. From 1969
to 1981, MONY provided investment advisory services for MONY Advisers, Inc. (a
wholly owned subsidiary of MONY). MONY Advisers, Inc. acted as investment
adviser to The MONY Fund, Inc., a registered, diversified, open-end, management
investment company. As of December 31, 1999, total assets under management in
the accounts managed by MONY and MONY America were about $25.0 billion. These
assets included common stocks, long and medium term publicly traded fixed income
securities, and short-term debt obligations. The size of the accounts and
portfolios managed by MONY or its personnel does not assure that a shareholder
of the Fund will realize any gain or be protected from any loss.
MONY America and MONY serve as investment managers or advisers in managing
their own assets and, in the case of MONY, the assets of separate accounts and
certain of its subsidiaries. In the future, MONY America and MONY may serve as
investment manager or adviser to other investment companies. Investment
opportunities may arise that are appropriate for more than one account or entity
for which MONY America or MONY serves as investment manager or adviser,
including for their own accounts. When this occurs, MONY America and MONY and
their personnel will not favor one over the another. Investments will be
allocated among them in an impartial manner believed to be equitable to each
entity involved. The allocations will be based on each entity's investment
objectives and its current cash and investment positions. Because these various
entities have different investment objectives and positions, MONY America or
MONY may from time to time buy a particular security for one or more of such
entities when it sells such securities for another.
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<PAGE> 28
The fee for each of the portfolios is shown in the table below.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT FEE
- --------------------------------------------------------------------------------------------
<S> <C>
Equity Income Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
Equity Growth Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
Intermediate Term Bond Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
Long Term Bond Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
Government Securities Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
Money Market Portfolio Annual rate of 0.40% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
Diversified Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million and
0.30% of amounts in excess of $800 million.
- --------------------------------------------------------------------------------------------
</TABLE>
MONY America has agreed to bear all expenses (1) for the Fund's
organization, (2) related to initial registration and qualification under
federal and state securities laws, and (3) for compensation of the Fund's
directors, officers and employees who are interested persons (as defined by the
1940 Act) of MONY America. All other expenses, including those associated with
calculating net asset value of the portfolios and any extraordinary or
non-recurring expenses will be borne by the Fund. With respect to the expenses
of printing and mailing prospectuses, see "Purchase and Redemption of Shares" on
page 25.
MONY America receives an investment management fee as compensation for its
services to each of the portfolios.
CUSTODIAN, TRANSFER AGENT, AND DIVIDEND DISBURSING AGENT
State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110 is the custodian of the securities held by the portfolios of
the Fund. It is authorized to use the facilities of the Depository Trust Company
and the facilities of the book-entry system for the Federal Reserve Bank. The
Fund acts as its own transfer agent and dividend-disbursing agent.
YEAR 2000 ISSUE
MONY America has monitored the status of the technologies that are utilized
for administration by the Fund for Year 2000 compliance. As the Fund
transitioned into the Year 2000 there were no reported incidents with investment
systems, interfaces or third parties. The investment adviser, principal
underwriter and distributor, transfer agent, custodian and various service
providers were able to continue their operations and provide uninterrupted
service.
24
<PAGE> 29
LEGAL PROCEEDINGS
The Fund, its investment adviser and its principal underwriter are not a
party to any legal proceedings at December 31, 1999.
PURCHASE AND REDEMPTION OF SHARES
Shares in the Fund are currently being offered continuously to MONY and
MONY America at prices equal to the net asset values of each portfolio. MONY and
MONY America buy the shares for allocation to the Variable Accounts (as that
term is defined on page 27.) to fund benefits payable under the contracts
described in the attached prospectus. There is no sales charge for shares at the
Fund level. The Fund sells its shares through MONY Securities Corporation
("MSC") (which acts as "principal underwriter" of the contracts and therefore of
the shares of the Fund). MSC is registered as a broker-dealer under the
Securities Exchange Act of 1934 and is a member of the National Association of
Securities Dealers. It is expected that there will be no distribution expenses
for the Fund, other than expenses for preparing, printing and mailing
prospectuses. These expenses, and any other distribution expenses, will be paid
by MSC pursuant to an underwriting agreement. The underwriting agreement will
comply with pertinent provisions of the 1940 Act and rules of the Securities and
Exchange Commission ("SEC") under the Act. The Fund may at some later date also
offer its shares to other separate accounts of MONY, MONY America, or other MONY
subsidiaries.
The Fund is required to redeem all full and fractional shares of the Fund
for cash within seven days of receipt of proper notice of redemption. The
redemption price is the net asset value per share next determined after the
initial receipt of proper notice of redemption.
The right to redeem shares or receive payment with respect to any
redemption may be suspended only (i) for any period during which trading on the
New York Stock Exchange is restricted as determined by the SEC or when the New
York Stock Exchange is closed (other than customary weekend and holiday
closings), (ii) for any period during which an emergency exists as defined by
the SEC as a result of which disposal of a portfolio's securities or
determination of the net asset value of each portfolio is not reasonably
practicable, and (iii) for such other periods as the SEC may by order permit for
the protection of shareholders of each portfolio.
A portfolio may hold securities that are listed on foreign exchanges. These
securities may trade on weekends or other days when the portfolio does not
calculate net asset value. As a result, the value of these investments may
change on days when shares cannot be purchased or sold by MONY and/or MONY
America.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund and each of its portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). For a description of the restrictions
that apply to qualifying as a regulated investment company, see the Statement of
Additional Information. Under those provisions, there are certain cases in which
the Fund and each of its portfolios will not be subject to federal income tax.
Federal income tax will not apply on the part of the net ordinary income and net
realized capital gains that each portfolio distributes to MONY and MONY America,
for allocation to the Variable Accounts. Federal income tax will also not apply
to MONY with respect to shares acquired with initial or additional capital.
Since the only shareholders of the Fund will be MONY and MONY America, there is
no discussion in this Prospectus of the federal income tax consequences at the
shareholder level. For information on the federal tax results to Contract
holders, see the attached prospectus for the Contracts.
The Fund intends to distribute as dividends substantially all the net
ordinary income, if any, of each portfolio. For dividend purposes, net ordinary
income of each portfolio, consists of:
(1) All dividends received (other than stock dividends), plus
(2) All interest and other ordinary income accrued, plus
(3) All short-term capital gains realized, less
(4) The expenses of the portfolio (including fees payable to the
investment adviser).
25
<PAGE> 30
Net ordinary income of the Money Market Portfolio consist of:
(1) Interest accrued and/or discount earned (including both original
issue and market discount), plus
(2) All realized net short-term capital gains, less
(3) The expenses of the portfolio (including the fees payable to the
investment adviser).
Dividends on the Money Market Portfolio will be declared and reinvested daily in
additional full and fractional shares of the portfolio. Shares corresponding to
the Money Market Portfolio will begin accruing dividends on the day following
the date on which they are issued. Dividends from investment income of the other
portfolios will be declared and reinvested in additional full and fractional
shares annually, although the Fund may make distributions more frequently. MONY
may elect to receive dividends on the shares acquired to provide operating
capital in cash.
The Fund will normally declare and distribute annually all net realized
capital gains of each portfolio of the Fund (other than short-term gains of the
Money Market Portfolio, which are declared as dividends daily). In determining
the amount of capital gains to be distributed, the realized capital gains and
losses of each of the portfolios are computed separately. This will not cause
any of the portfolios to have a different investment performance than it would
if it were taxed, together with the other portfolios, as a single investment
company. It will also not affect the value of Contract holders' interests under
the Contracts.
The Fund and each of its portfolios expect to declare dividends for each
calendar year payable to shareholders of record as of a specified date. These
dividends will usually be distributed in March of the following calendar year.
In determining the capital gains distribution, the Fund and each of its
portfolios will compute net realized capital gains for each calendar year.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury regulations currently in effect. For the
complete provisions, you should refer to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
SHARES IN THE FUND
The authorized capital stock of the Fund consists of 2 billion shares, par
value $.01 per share. The shares of capital stock are divided into seven
classes: Equity Income Portfolio Capital Stock (150 million shares); Equity
Growth Portfolio Capital Stock (150 million shares); Intermediate Bond Portfolio
Capital Stock (150 million shares); Long Term Bond Portfolio Capital Stock (150
million shares); Government Securities Portfolio Capital Stock (150 million
shares); Money Market Portfolio Capital Stock (750 million shares); and
Diversified Portfolio Capital Stock (150 million shares). In the future, the
Fund may allocate some of the remaining authorized shares to these classes, or
create new classes and then issue shares of such new classes. Each share of
stock will have a pro-rata interest in the assets of the portfolio to which the
stock of that class relates and will have no interest in the assets of any other
portfolio. Each portfolio bears its own liabilities and also its proportionate
share of the general liabilities of the Fund. Holders of shares of any portfolio
are entitled to redeem their shares (see "Purchase and Redemption of Shares" at
page 25). The shares of each portfolio, when issued, will be fully paid and
non-assessable, will have no preemptive, conversion, exchange or similar rights,
and will be freely transferable. The shares do not have cumulative voting
rights.
MONY provided the initial capital for each of the Fund's portfolios.
Additional shares may be acquired by MONY during the Fund's operation or any new
portfolio's start-up period. The acquisition of shares by MONY will enable the
portfolios (or any new portfolios) to avoid an unrealistically poor investment
performance. Poor investment performance might otherwise result because the
amounts available for investment were too small. The acquisition of shares by
MONY also enables the portfolios to satisfy the net worth requirements of the
1940 Act. MONY may also acquire additional shares through dividend reinvestment
in connection with the shares acquired during the start-up period. Any shares
26
<PAGE> 31
acquired by MONY (other than for allocation to the Variable Accounts described
in "The Accounts and the Contracts," below) will be acquired for investment and
can be disposed of only be redemption. They will not be redeemed by MONY until
the other assets of the portfolios are large enough so that redemption will not
have an adverse effect upon investment performance. MONY will vote these shares
in the same proportion as the shares held in the Variable Accounts, which
generally are voted in accordance with the instructions of contract holders.
THE ACCOUNTS AND THE CONTRACTS
Shares of all portfolios in the Fund are currently sold to MONY America and
MONY for allocation to MONY America Variable Account L and MONY Variable Account
L to fund benefits under Flexible Premium Variable Life Insurance Contracts
issued by those companies. The shares are also sold to those companies for
allocation to MONY America Variable Account A and MONY Variable Account A to
fund benefits under Flexible Payment Variable Annuity Contracts that they issue.
Shares of all portfolios, other than the Government Securities Portfolio, are
sold to MONY America and MONY for allocation to MONY America Variable Account S
and MONY Variable Account S to fund benefits under Variable Life Insurance with
Additional Premium Option contracts issued by them. In addition, shares of the
Fund are sold to MONY for allocation to Keynote Series Account ("Keynote") to
fund benefits under Individual Variable Annuity Contracts. Until June 24, 1994,
shares were sold to MONY for allocation to Keynote to fund benefits under Group
Annuity Contracts issued by MONY. Each contract holder allocates the net
premiums and the assets relating to these Contracts, within contract
limitations, among the subaccounts of these variable accounts ("Variable
Accounts"). The subaccount assets are invested in the corresponding portfolios
of the Fund. Contract holders should consider that the investment return
experience of the portfolios will affect the value of the Contracts and may
affect the amount of benefits received under the Contracts. The attached
prospectus for the Contracts describes the Contracts and the relationship
between changes in the value of shares of each portfolio and changes in the
benefits payable under the Contracts. The rights of the Variable Accounts as
shareholders should be distinguished from the rights of a Contract holder, which
are described in the contracts. Because the shares of the Fund will be sold to
MONY America and MONY for allocation to the Variable Accounts, the terms
"shareholder" or "shareholders" in this prospectus refer to those companies.
STATE LAW RESTRICTIONS
The investments of Keynote and the MONY Variable Accounts, and MONY America
Variable Accounts are subject to the provisions of New York and Arizona
insurance law, respectively, applicable to the investments of life insurance
separate accounts. State law investment restrictions do not apply directly to
the Fund. However, the portfolios will comply, without the approval of
shareholders, with such statutory requirements, as they exist or may be amended.
Currently under New York law, the assets of Keynote and the MONY Variable
Accounts may be invested in any investments:
(1) permitted by agreement between these Variable Accounts and their
contract holders, and
(2) acquired in good faith and with that degree of care that an ordinary
prudent person in a like position would use under similar
circumstances.
The only agreement with contract holders pertaining to investments
permitted for the Variable Accounts is as described in the prospectuses for the
contracts, namely that the Variable Accounts will invest only in shares of the
Fund. The investment assets of the Fund are subject to the investment objective,
policies and restrictions applicable to the Portfolios, as described in this
prospectus. (see The Fund at page 1) and in the Statement of Additional
Information (Investment Restrictions).
27
<PAGE> 32
The following is a summary of the current provisions of Arizona law:
The assets of variable accounts established by MONY America may be invested
in any investments that are of the kind permitted and that satisfy qualitative
requirements, but without regard to quantitative restrictions. The following
instruments must receive an investment grade rating approved by the Director of
Insurance: (1) bonds, (2) debentures, (3) notes, (4) commercial paper and other
evidences of indebtedness, and (6) preferred, guaranteed or preference stocks.
Funds may not be invested in foreign banks (other than foreign branches of
domestic banks) except that investments may be made in obligations issued,
assumed or guaranteed by the International Bank for Reconstruction and
Development. Investments not otherwise permitted under Arizona law may be made
in an amount not exceeding in the aggregate 10% of assets and not exceeding 2%
of assets as to any one such investment.
Compliance with the New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states.
However, under some circumstances the laws of other states could impose
additional restrictions. Accordingly, if any state or other jurisdiction in
which the Variable Accounts propose to do business imposes additional limits
applicable to the Variable Accounts, the Fund will comply with such further
investments limits.
DETERMINATION OF NET ASSET VALUE
The net asset value of the shares of each portfolio will be determined once
daily. The determination will occur immediately after the declaration of
dividends, if any, at a time determined by the Fund's Board of Directors.
Currently, net asset value is determined at 4:00 p.m. New York City time on each
day the New York Stock Exchange is open for business. The net asset value per
share of each portfolio except the Money Market Portfolio is computed as
follows:
(1) Add the sum of the value of the securities held by the portfolio
plus any cash or assets it holds.
(2) Subtract all the portfolio's liabilities.
(3) Divide the result by the total number of shares outstanding of
that portfolio at the time of the determination.
Expenses, including the investment management fee payable to MONY America, are
accrued daily.
High-quality, short-term debt obligations held in any of the portfolios
with a remaining maturity of 60 days or less will be valued on an amortized-cost
basis. This means that each obligation will be valued initially at its purchase
price. Thereafter, it will be valued by amortizing any discount or premium
uniformly to maturity, regardless of the impact of fluctuating interest rates on
the market value of the obligation. This highly practical method of valuation is
in widespread use and almost always results in a value that is extremely close
to the actual market value. The Fund's Board of Directors will review
obligations valued under this method where: (1) credit or other factors may
indicate the method is not appropriate, or (2) the rules of the SEC require a
review. Short-term debt obligations with a remaining maturity of more than 60
days will be valued in the same way as are debt securities held in the
Intermediate Term Bond, Long Term Bond and Government Securities portfolios, as
described below in "Valuation of Intermediate Term Bond, Long Term Bond and
Government Securities Portfolios."
VALUATION OF EQUITY INCOME AND EQUITY GROWTH PORTFOLIOS
Short-term obligations will be valued on an amortized-cost basis. Each
security traded on a national securities exchange will be valued on the
valuation date at the last sales price (or last bid price if there were no sales
of the security on that day) on the New York Stock Exchange. If the security is
not traded on the New York Stock Exchange, it will be valued at the last sales
or bid price on the principal exchange on which it is traded when the New York
Stock Exchange closes. Any securities not traded on the a
28
<PAGE> 33
national exchange, but traded on the over-the-counter market, will be valued at
the last bid price available when the New York Stock Exchange closes. There is
an exception for securities for which quotations are furnished through a
nationwide automated quotation system approved by NASDAQ. These securities will
be valued at the closing best bid price furnished on the date of valuation.
VALUATION OF INTERMEDIATE TERM BOND, LONG TERM BOND AND GOVERNMENT SECURITIES
PORTFOLIOS
Securities will be valued based on a decision as to the broadest and most
representative market for such security. The value will be based on:
(i) the last available sales price on a national securities exchange,
or
(ii) in the absence of recorded sales, the average of readily
available closing bid and asked prices on national securities exchanges, or
(iii) the average of the quoted bid and asked prices in the
over-the-counter market.
Securities or assets for which market quotations are not readily available will
be valued at fair value as determined by the Investment Adviser under the
direction of the Board of Directors of the Fund.
VALUATION OF MONEY MARKET PORTFOLIO
The net asset value of shares of the Money Market Portfolio will normally
remain at $1.00 per share because the net investment income of this portfolio
(including realized and unrealized gains and losses on its holdings) will be
declared as a dividend each time its net income is determined. (See "Dividends,
Distributions and Taxes," at page 25.) If the Board of Directors of the Fund
considers it inadvisable to continue to maintain the net asset value of the
portfolio at $1.00 per share, the Board reserves the right to alter the
procedure. The Fund will notify shareholders of any such alteration.
The Fund will value all short-term debt obligations held in the Money
Market Portfolio on an amortized cost basis. The regulations of the SEC require
as a condition for using amortized cost valuation that the portfolio:
(i) maintain a dollar-weighted average portfolio maturity not
exceeding 90 days, and
(ii) limit its portfolio investments to those United States
dollar-denominated instruments determined to present minimal credit risks
and which are Eligible Securities when acquired.
Eligible Securities include any security:
(i) issued with, or with a remaining maturity of, 397 days or less,
and
(ii) which is rated (or, if unrated, the issuer also issues short-term
securities any one of which, comparable in priority and security, is rated)
by an SEC designated statistical rating organization in one of the two
highest rating categories for short-term debt obligations; or
(iii) the issuer of which does not have any securities which have a
short term rating but which security is:
(a) comparable in priority and security to a security which has
been rated in one of the two highest rating categories for short term
debt obligations by an SEC designated statistical rating organization,
and
(b) not a security which had an original maturity in excess of 397
days and which received a rating as a long term debt obligation form
such rating organization that was not within the two highest rating
categories.
In the event of sizable changes in interest rates, the value determined by
amortized cost valuation may be higher or lower than the price that would be
received if the obligation were sold. On these occasions (if any should occur)
as a further condition to using amortized-cost valuation, procedures have been
established by the Board of Directors. The procedures determine whether the
deviation might be enough to
29
<PAGE> 34
affect the value of shares in the Money Market Portfolio by more than one-half
of one percent. If it does, an appropriate adjustment will be made in the value
of the obligations.
VALUATION OF DIVERSIFIED PORTFOLIO
In determining the net asset value of the Diversified Portfolio, the method
of valuation of a security will depend on the investment involved. A security,
which is a common stock, will be valued in the same way as securities held in
the Equity Income or Equity Growth portfolios. A security which is an
intermediate or long-term fixed income security, or short-term debt obligations
(other than those valued on an amortized-cost basis) will be valued in the same
way as debt securities held in the Intermediate Term Bond, Long Term Bond or
Government Securities portfolios.
30
<PAGE> 35
APPENDIX A
SECURITIES IN WHICH THE MONEY MARKET
PORTFOLIO MAY CURRENTLY INVEST
The Money Market Portfolio, and the other Portfolios to the extent their
investment policies so provide, may invest in the following short-term, debt
securities regularly bought and sold by financial institutions:
1. Debt securities (including bills, certificates of indebtedness, notes,
and bonds) issued or guaranteed by the U.S. Treasury or by an agency or
instrumentality of the U.S. Government that is established under the authority
of an act of Congress. These include:
- U.S. Treasury Bills,
- Other obligations issued or guaranteed by the U.S. Government,
- Obligations of U.S. agencies or instrumentalities which are backed by the
U.S. Treasury, and
- Obligations issued or guaranteed by U.S. agencies or instrumentalities
and backed solely by the issuing agency or instrumentality.
Such agencies or instrumentalities include, but are not limited to: (1)
The Federal National Mortgage Association, (2) the Federal Farm Credit
Bank, (3) the Federal Home Loan Bank and (4) the Government National
Mortgage Association.
Although all obligations of agencies and instrumentalities are not direct
obligations of the U.S. Treasury, payment of the interest and principal on them
is generally backed directly or indirectly by the U.S. Treasury. This support
can range from the backing of the full faith and credit of the United States, to
U.S. Treasury guarantees, or to the backing solely of the issuing agency or
instrumentality itself.
2. Obligations (including certificates of deposit, bankers' acceptances and
time deposits) of any bank which has, at the time of the Portfolio's investment,
total investment assets of at least $1 billion or the equivalent. The bank may
be organized under the laws of the United States or any state or foreign
branches of such banks or foreign banks. The term "certificates of deposit"
includes:
- Eurodollar certificates of deposit, which are traded in the
over-the-counter market,
- Eurodollar time deposits, for which there is generally not a market, and
- Yankee certificates of deposit.
"Eurodollars" are dollars deposited in banks outside the United States. Yankee
certificates of deposit are certificates of deposit denominated in U. S. dollars
and issued in the United States by the domestic branch of a foreign bank and are
primarily traded in the United States. An investment in Eurodollar instruments
involves risks that are different in some respects from an investment in debt
obligations of domestic issuers. These risks include future political and
economic developments such as possible expropriation or confiscatory taxation
that might adversely affect the payment of principal and interest on the
Eurodollar instruments. In addition, foreign branches of domestic banks and
foreign banks may not be subject to the same accounting, auditing and financial
standards and requirements as domestic banks. Finally, in the event of default,
judgments against a foreign branch or foreign bank might be difficult to obtain
or enforce. Yankee certificates have risks substantially similar to those of
Eurodollar certificates.
"Certificates of deposit" are certificates evidencing the indebtedness of a
commercial bank to repay funds deposited with it for a definite period of time
(usually from 14 days to one year). "Bankers' acceptances" are credit
instruments evidencing the obligation of a bank to pay a draft which has been
drawn on it by a customer. These instruments reflect the obligation both of the
bank and of the drawer to pay the face amount of the instrument upon maturity.
"Time deposits" are non-negotiable deposits in a bank for a fixed period of
time.
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<PAGE> 36
3. Commercial paper issued by corporations which at the date of investment
is rated (a) by any two SEC designated statistical rating organizations in one
of the two highest rating categories for short-term debt obligations or, (b) if
not rated, issued by domestic or foreign corporations which have an outstanding
senior long-term debt issue rated by any two SEC designated statistical rating
organizations in one of the two highest rating categories for short-term debt
obligations. "Commercial paper" consists of short-term (usually from 1 to 270
days) unsecured promissory notes issued by corporations in order to finance
their current operations. If the commercial paper is issued by a foreign
corporation, it must be U.S. Dollar denominated.
4. Other corporate obligations issued by domestic or foreign corporations
which at the date of investment are rated by any two SEC designated statistical
rating organizations in one of the two highest rating categories for short-term
debt obligations.
"Corporate obligations" are bonds and notes issued by corporations and other
business organizations, including business trusts, in order to finance their
long-term credit needs. If the obligation is issued by a foreign corporation, it
must be U.S. Dollar denominated.
5. Repurchase Agreements. When the Money Market Portfolio purchases money
market securities of the types described above, it may on occasion enter into a
repurchase agreement with the seller. In a repurchase agreement, the seller and
the buyer agree at the time of sale to a repurchase of the security at a
mutually agreed upon time and price. The period of maturity is usually quite
short, possibly overnight or a few days, although it may extend over a number of
months. The resale price is in excess of the purchase price. This resale price
reflects an agreed-upon market rate of interest effective for the period of time
the Portfolio's money is invested in the security, and is not related to the
coupon rate of the purchased security. Repurchase agreements may be considered
loans of money to the seller of the underlying security, which are
collateralized by the securities underlying the repurchase agreement. The Fund
will not enter into repurchase agreements unless the agreement is "fully
collateralized," i.e., the value of the securities is, and during the entire
term of the agreement remains, at least equal to the amount of the "loan"
including accrued interest. The Fund's custodian bank will take possession of
the securities underlying the agreement, and the Fund will value them daily to
assure that this condition is met. The Fund has adopted standards for the
parties with whom it will enter into repurchase agreements. It believes these
standards are reasonably designed to assure that such a party presents no
serious risk of becoming involved in bankruptcy proceedings within the time
frame contemplated by the repurchase agreement. In the event that a seller
defaults on a repurchase agreement, the Fund may incur a loss in the market
value of the collateral, as well as disposition costs. If a party with whom the
Fund had entered into a repurchase agreement becomes involved in bankruptcy
proceedings, the Fund's ability to realize on the collateral may be limited or
delayed and a loss may be incurred if the collateral security of the repurchase
agreement declines in value during the bankruptcy proceedings.
6. Reverse Repurchase Agreements. The Portfolio may enter into reverse
repurchase agreements with banks. Reverse repurchase agreements have the
characteristics of borrowing. They involve the sale of securities held by the
Portfolio with an agreement to repurchase the securities at an agreed-upon price
and date. The price reflects a rate of interest paid for the use of funds for
the period. Generally, the effect of such a transaction is that the Portfolio
can recover all or most of the cash invested in the securities involved during
the term of the reverse repurchase agreement. In many cases the Portfolio will
be able to keep some of the interest income associated with those securities.
Such transactions are only advantageous if the Portfolio has an opportunity to
earn a greater rate of interest on the cash derived from the transaction than
the interest cost of obtaining that cash. The Portfolio may be unable to realize
a return from the use of the proceeds equal to or greater than the interest
required to be paid. Opportunities to achieve this advantage may not always be
available, and the Portfolio intends only to use the reverse repurchase
technique when it appears to be to its advantage to do so. The use of reverse
repurchase agreements may magnify any increase or decrease in the value of the
Portfolio's securities. The Fund's custodian bank will maintain in a separate
account securities of the Portfolio that have a value equal to or greater than
the Portfolio's commitments under reverse repurchase agreements.
A-2
<PAGE> 37
7. Asset backed securities are securities that have been structured to
receive payment from an identified pool of assets. These pools are typically
over-collateralized or they have some sort of financial guaranty such as a
letter of credit or a third party guaranty to ensure full and timely repayment.
8. Limited liquidity securities/securities sold under SEC Rule 144A. A
substantial market of qualified institutional buyers may develop under Rule 144A
of the 1933 Act for securities that are subject to legal or contractual
restrictions on resale. If such a market develops, these securities may be
treated as liquid securities. To the extent that for a period of time qualified
institutional buyers cease purchasing such securities pursuant to Rule 144A,
there may be an increase in the level of illiquidity in the portfolio during
such period.
Notwithstanding the above, it is the present intention of the Fund that the
Money Market Portfolio continue to qualify under the requirements of Rule 2a-7
of the Securities and Exchange Commission ("SEC"). This Rule permits the
Portfolio to use the amortized cost method of valuation to calculate net asset
value if the Portfolio's funds are invested in accordance with its guidelines.
Briefly, those guidelines require investment in Eligible Securities (see
Valuation of Money Market Portfolio at page 29 for a discussion of Eligible
Securities) which qualify as First or Second Tier securities under the Rule.
First Tier securities include any Eligible Security which:
(i) is rated (or, if unrated, the issuer of which also issues short-term
securities any one of which, comparable in priority and security, is rated)
by an SEC designated statistical rating organization in its highest
category for short-term debt obligations, or
(ii) is a security having:
- a remaining maturity of 397 days or less when acquired but which has
an original maturity in excess of 397 days, and
- which is now comparable in priority and security to a short-term
security of the same issuer which is rated by an SEC designated
statistical rating organization in the highest category for short-term
debt obligations; or
(iii) is unrated as a short-term security (and, if rated as a long-term
security, received a rating in one of the two highest categories) and is
issued by an issuer which has no rated short-term debt obligations
comparable in priority and security.
A Second Tier security is any Eligible Security (see Valuation of Money Market
Portfolio at page 29 for a discussion of Eligible Securities) which is not a
First Tier security.
A-3
<PAGE> 38
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<PAGE> 39
APPENDIX B
DESCRIPTION OF COMMERCIAL PAPER AND
CORPORATE BOND RATINGS
COMMERCIAL PAPER RATINGS
Moody's commercial paper ratings are opinions of the ability of issuers to
repay promissory obligations when due. Moody's employs the following three
designations, all judged to be investment grade, to indicate the relative
repayment capacity of rated issuers:
- Prime 1-Superior Ability for Repayment;
- Prime 2-Strong Ability for Repayment;
- Prime 3-Acceptable Ability for Repayment.
S&P's commercial paper rating is a current assessment of the likelihood of
timely payment. Ratings are graded into four categories, ranging from "A" for
the highest quality obligations to "D" for the lowest. Issues assigned the
highest rating, "A", are regarded as having the greatest capacity for timely
payment. Issues in this category are delineated with the numbers "1", "2", and
"3" to indicate the relative degree of safety. The designation "A-1" indicates
that the degree of safety regarding timely payment is either overwhelming or
very strong. The "A+" designation is applied to those issues rate "A-1" which
possess overwhelming safety characteristics. Capacity for timely payment on
issues with the designation "A-2" is strong. However, the relative degree of
safety is not as high as for issues designated "A-1."
Fitch's commercial paper ratings represent Fitch's assessment of the
issuer's ability to meet its obligations in a timely manner. The assessment
places emphasis on the existence of liquidity. Ratings range from "F-1+" which
represents exceptionally strong credit quality to "F-4" which represents weak
credit quality.
Duff's short-term ratings apply to all obligations with maturities of under
one year, including commercial paper, the uninsured portion of certificates of
deposit, unsecured bank loans, master notes, bankers acceptances, irrevocable
letters of credit and current maturities of long-term debt. Emphasis is placed
on liquidity. Ratings range for Duff 1+ are regarded as having the highest
certainty of time payment. Issues rated Duff 1 are regarded as having very high
certainty of timely payment.
Thomson's BankWatch, Inc. assigns only one Issuer Rating to each company,
based upon a qualitative and quantitative analysis of the consolidated
financials of an issuer and its subsidiaries. The rating incorporates TBW's
opinion of the vulnerability of the company to adverse developments which may
impact the marketability of its securities, as well as the issuer's ability to
repay principal and interest. Ratings range from "TBW-1" for highest quality to
"TBW-3" for the lowest, companies with very serious problems.
BOND RATINGS
A bond rated "Aaa" by Moody's is judged to be the best quality. They carry
the smallest degree of investment risk. Interest payments are protected by a
large or by an exceptionally stable margin and principal is deemed secure. While
the various protective elements may change, such foreseeable changes are
unlikely to impair the fundamentally strong position of such issues. Bonds which
are rated "Aa" are judged to be of high quality by all standards. Together with
the "Aaa" group they comprise what are generally known as high grade bonds.
Margins of protection on "Aa" bonds may not be as large as on "Aaa" securities
or fluctuations of protective elements may be of greater magnitude or there may
be other elements present which make the long-term risks appear somewhat larger
than "Aaa" securities. Bonds which are rated "A" possess many favorable
investment attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are considered
adequate but elements may be present which suggest a susceptibility to
impairment some time in the future. Bonds
B-1
<PAGE> 40
rated "Baa" are considered medium grade obligations whose interest payments and
principal security appear adequate for the present but may lack certain
protective elements or may be characteristically unreliable over any great
length of time. Moody's applies numerical modifiers "1", "2" and "3" in each
generic rating classifications from "Aa" through "B" in its corporate bond
rating system. The modifier "1" indicates that the security ranks in the higher
end of its generic rating category; the modifier "2" indicates a mid-range
ranking; and the modifier "3" indicates that the issue ranks in the lower end of
its generic rating category. Bonds rated "Ba" are judged to have speculative
elements and bonds rated below "Ba" are speculative to a higher degree.
Debt rate "AAA" by S&P has the highest rating assigned by it. Capacity to
pay interest and repay principal is extremely strong. Debt rated "AA" has a
strong capacity to pay interest and repay principal and differs from "AAA"
issues only in small degree. Debt rated "A" has a strong capacity to pay
interest and repay principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than debt in
higher rated categories. Debt rated "BBB" is regarded as having an adequate
capacity to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and
repay principal for debt in this category than in higher rated categories. Debt
rated "BB" and below is regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and repay principal.
Debt rated "AAA", the highest rating by Fitch, is considered to be of the
highest credit quality. The obligor has an exceptionally strong ability to pay
interest and repay principal, which is unlikely to be affected by reasonably
foreseeable events. Debt rated "AA" is regarded as very high credit quality. The
obligor's ability to pay interest and repay principal is very strong. Debt rated
"A" is of high credit quality. The obligor's ability to pay interest and repay
principal is considered to be strong, but may be more vulnerable to adverse
changes in economic conditions and circumstances than debt with higher ratings.
Debt rated "BBB" is of satisfactory credit quality. The obligor's ability to pay
interest and repay principal is adequate, however a change in economic
conditions may adversely affect timely payment. Plus (+) and minus (-) signs are
used with a rating symbol (except "AAA") to indicate the relative position
within the category.
Debt rated "AAA", the highest rating by Duff is considered to be of the
highest credit quality. The risk factors are negligible being only slightly more
than for risk-free U.S. Treasury debt. Debt rated "AA" is regarded as high
credit quality. Protection factors are strong. Risk is modest but may vary
slightly from time to time because of economic conditions. Debt rated "A" is
considered to have average but adequate protection factors. Bonds rated "BBB"
are considered to have below average protection factors but still sufficient for
prudent investment. Bonds rated "BB" and below are below investment grade and
possess fluctuating protection factors and risk.
B-2
<PAGE> 41
MONY SERIES FUND, INC.
ADMINISTRATIVE OFFICES
1740 BROADWAY, NEW YORK, NEW YORK 10019
The Statement of Additional Information has more information about the Fund. The
Statement of Additional Information is incorporated by reference into this
prospectus.
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report, you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during the last fiscal year.
You may get a Statement of Additional Information, annual report or semi-annual
report without charge by calling 1-800-487-6669 or by sending a request to: MONY
Series Fund, Inc., 1740 Broadway, New York, New York 10019. Requests for other
information about the Fund or any shareholder inquiries should be made by
calling or writing to the above phone number or address.
Information about the Fund (including the Statement of Additional Information)
can be reviewed and copied at the Securities and Exchange Commissions Public
Reference Room in Washington, D.C. You may get information on the operation of
the public reference room by calling the Securities and Exchange Commission at
1-800-SEC-0330. Reports and other information about the Fund are available on
the Securities and Exchange Commission's Internet site at http://www.sec.gov.
You may get copies of this information by paying a duplicating fee, and writing
the Public Reference Section of the Securities and Exchange Commission,
Washington, D.C. 20549-6009.
File Number: 2-95501
811-04209
<PAGE> 42
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<PAGE> 43
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<PAGE> 44
Bulk Rate
U.S. Postage
P A I D
Permit No. 8048
New York,
New York
MONY Life Insurance Company
MONY Life Insurance Company of America
Administrative Offices
1740 Broadway, New York, NY 10019
[THE MONY GROUP LOGO]
MONY Life Insurance Company,
MONY Life Insurance Company of America and MONY
Securities Corporation are members of The MONY Group
- --------------------------------------------------------------------------------
MSF (5/00)
<PAGE> 45
STATEMENT OF
ADDITIONAL INFORMATION
MAY 1, 2000
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS, BUT SHOULD BE READ
IN CONJUNCTION WITH THE CURRENT PROSPECTUS FOR MONY SERIES FUND, INC. DATED MAY
1, 2000. TO OBTAIN THIS PROSPECTUS PLEASE CALL 1-800-487-6669 OR WRITE:
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
GENERAL INFORMATION......................................... (1)
INVESTMENT RESTRICTIONS..................................... (1)
INVESTMENT ADVISORY AND OTHER SERVICES...................... (3)
Distribution of Shares.................................... (5)
Custodian................................................. (5)
Independent Accountants................................... (6)
Service Marks License..................................... (6)
MANAGEMENT OF THE FUND...................................... (7)
VOTING RIGHTS............................................... (8)
SUBSEQUENT ANNUAL MEETINGS.................................. (9)
CONTROL PERSONS............................................. (9)
PORTFOLIO BROKERAGE AND RELATED PRACTICES................... (9)
FEDERAL INCOME TAX STATUS................................... (10)
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS................ (11)
PERFORMANCE DATA............................................ (12)
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS...... F-1
</TABLE>
<PAGE> 46
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<PAGE> 47
GENERAL INFORMATION
MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized on
December 14, 1984, currently consists of seven (7) different Portfolios that
are, in effect, separate investment funds: Equity Income Portfolio, Equity
Growth Portfolio, Intermediate Term Bond Portfolio, Long Term Bond Portfolio,
Government Securities Portfolio, Money Market Portfolio, and Diversified
Portfolio (the "Portfolios"). Until November 18, 1994, the Government Securities
Portfolio had been known as the Intermediate Government Bond Portfolio. The Fund
is registered under the Investment Company Act of 1940 (the "1940 Act") as an
open-end, diversified, management investment company. This registration does not
imply any supervision by the Securities and Exchange Commission over the Fund's
management or its investment policies or practices.
For more detailed information about the Fund, including information on the
purchase, redemption and pricing of the shares of the Fund see the Prospectus of
the Fund (Purchase and Redemption of Shares, Shares in the Fund).
INVESTMENT RESTRICTIONS
The Fund is registered under the Investment Company Act of 1940 as an
open-end, diversified, management investment company. This registration does not
imply any supervision by the Securities and Exchange Commission over the Fund's
management or its investment policies or practices.
A description of the investment objectives of each Portfolio, as well as
the policies through which those objectives are pursued, is contained in the
Prospectus (Investment Objectives and Policies of the Portfolios).
In addition, the current Portfolios of the Fund are subject to certain
fundamental investment restrictions that may not be changed except with the
approval of a majority vote of the outstanding shares of the Portfolio affected
(which for this purpose and under the 1940 Act means the lesser of (i) 67
percent of the Portfolio shares represented at a meeting at which more than 50
percent of the outstanding Portfolio shares are represented or (ii) more than 50
percent of the outstanding Portfolio shares). The Fund may in the future create
new portfolios that may be subject to different investment restrictions.
The fundamental investment restrictions applicable to the seven current
Portfolios, including those fundamental restrictions described in the Prospectus
(The Fund), are:
1. The Portfolios will not: (a) invest in the securities of any
company for the purpose of exercising control or management thereof (alone
or together with the other Portfolios); (b) write or purchase put or call
options; (c) purchase securities on margin, except for such short-term
credits as are necessary for the clearance of transactions, (d) effect a
short sale of securities, or (e) invest in obligations that are not
denominated in United States dollars.
2. Securities of other issuers will not be underwritten, except that
the right is reserved for each Portfolio to purchase for investment, on
original issue or otherwise, securities that may not subsequently be
distributed to the public without registration or that are exempt from
registration, to the extent that investments in such securities will not
exceed 10 percent of the value of each Portfolio's total assets at the time
such an investment is made. Expenses of any such registration will be borne
by such Portfolio only if its best efforts to have the issuer agree to bear
such expenses are unsuccessful.
3. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
(1)
<PAGE> 48
4. The Portfolios will not purchase or sell commodities, commodity
contracts, or oil or gas interests, except that the right is reserved for
each Portfolio to purchase securities of issuers which invest or deal in
the foregoing.
5. The Portfolios will not engage in the issuance of senior
securities, except in the case of certain borrowings, as described in
paragraph (7) below.
6. Loans, both long and short term, may be made by a Portfolio only
through the purchase or acquisition of privately-placed bonds, debentures,
notes or other evidences of indebtedness (that may or may not be
convertible into stock) of a type customarily acquired by institutional
investors provided, however, that no such purchase or acquisition will be
made if, as a result thereof, more than 10 percent of the value of the
Portfolio's assets would be so invested. (Any such "loan" may be considered
a security subject to the 10 percent investment limitation referred to in
(2) above.) The purchase or acquisition of repurchase agreements,
certificates of deposit or of portions of publicly distributed bonds,
debentures, or other securities, shall not be considered the making of a
loan by the Portfolios for purposes of this restriction.
7. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
8. In general, the Portfolios do not intend to concentrate investments
in any one industry. Accordingly, no Portfolio will make an investment in a
particular industry, if as a result of such investment more than 25 percent
of the value of its assets would be invested in that industry, except that
this restriction shall not apply to (a) obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities or (b) certificates
of deposit issued by, time deposits in, bankers' acceptances accepted by,
or repurchase agreements with, banks organized within the United States.
For purposes of this restriction, neither finance companies as a group nor
utility companies as a group are considered to be a single industry and
will be grouped instead according to their services; for example, gas,
electric, and telephone utilities will each be considered a separate
industry.
9. The Fund will operate as a diversified company as that term is used
in the Investment Company Act of 1940. This means that 75 percent of the
assets of each Portfolio other than the Money Market Portfolio and 100% of
the assets of the Money Market Portfolio is subject to the limitation that
no purchase of a security -- other than cash, cash items, and securities of
the U.S. Government, its agencies or instrumentalities -- will be made if,
as a result of such purchase: (a) more than 5 percent of the value of the
Portfolio's assets would be invested in the securities of one issuer, or
(b) the Fund as a whole or any Portfolio would hold more than 10 percent of
the outstanding voting securities of any one issuer. In addition to the
above limitations, the Money Market Portfolio may not have invested more
than (x) the greater of 1 percent of its Total Assets or $1,000,000 in
securities of any issuer, and (y) 5 percent of Total Assets in securities
of all issuers which were, when acquired by the Portfolio (either initially
or on rollover), Second Tier Securities (see Appendix A of the Prospectus
for a definition of Second Tier Securities). Some uncertainty exists as to
whether certain of the types of bank obligations in which a Portfolio may
invest, such as certificates of deposit and bankers' acceptances, should be
classified as "cash items" rather than "securities" for purposes of this
restriction, which is a diversification requirement under the 1940 Act.
Interpreting most bank obligations as "securities" limits the amount a
Portfolio may invest in the obligations of any one bank to 5 percent of its
total assets. If there is an authoritative decision that any of these
obligations are not "securities" for purposes of this diversification test,
this limitation will not apply to the purchase of such obligations.
10. No Portfolio may purchase or acquire securities of other
investment companies, except in connection with a merger, consolidation,
acquisition or reorganization, or except by purchase in the open market of
securities of closed-end investment companies where no underwriter's or
dealer's commission
(2)
<PAGE> 49
or profit, other than customary broker's commission, is involved, provided
that immediately thereafter such Portfolio or the Fund as a whole may not
own (a) securities of investment companies having an aggregate value in
excess of 10 percent of such Portfolio's total assets; (b) more than 3
percent of the outstanding voting stock of the investment company; or (c)
securities of the investment company having an aggregate value in excess of
5 percent of the Portfolio's total assets.
11. No Portfolio will invest more than 10 percent of its total assets
in illiquid assets, including illiquid restricted securities, repurchase
agreements maturing in more than seven days, and non-negotiable time
deposits maturing in more than seven days.
12. The Portfolios will not participate on a joint or a joint and
several basis in trading accounts in securities but this restriction does
not prevent the aggregation of orders for the sale or purchase of Portfolio
securities with the other Portfolios or with any other accounts advised or
sponsored by the Investment Adviser or any of its affiliates to reduce
brokerage commissions or otherwise to achieve the best overall execution.
13. No Portfolio will invest in foreign securities that are not
publicly traded in the United States if at the time of the acquisition more
than 10 percent of such Portfolio's total assets would be invested in such
securities.
The Money Market Portfolio is subject to the additional investment
restriction that it will not invest in any security with a remaining maturity in
excess of 397 days, except that underlying collateral securities held pursuant
to repurchase agreements may have a remaining maturity of more than 397 days.
INVESTMENT ADVISORY AND OTHER SERVICES
The Fund has entered into an Investment Advisory Agreement with MONY Life
Insurance Company of America ("MONY America") under which MONY America will
carry on the overall day-to-day management of the Equity Income, Equity Growth,
Intermediate Term Bond, Long Term Bond, Government Securities, Money Market, and
Diversified Portfolios of the Fund, and provide investment advice and related
services for each of those Portfolios. If the Fund creates new portfolios in the
future, MONY America may be appointed to act as investment adviser and manager
for those portfolios, as well, or the Fund may appoint a different investment
adviser for any new portfolio.
The Investment Advisory Agreement was initially approved by the Fund's
Board of Directors, including a majority of the non-interested directors (as
defined by the 1940 Act), on January 2, 1985. The agreement was amended
effective August 4, 1997, and the Amended Investment Advisory Agreement was
approved by the shareholders on October 14, 1997. The continuance of the Amended
Investment Advisory Agreement was approved by the Fund's Board of Directors on
February 24, 2000. The Services Agreement was similarly approved on January 2,
1985 and continuance for an additional year was most recently approved by the
Fund's Board of Directors on February 24, 2000. Both Agreements will continue in
effect if approved annually by (1) a majority of the non-interested directors
(as defined by the 1940 Act) of the Fund's Board of Directors, and (2) a
majority of the entire Board of Directors or a majority vote of the voting
shares of each Portfolio. If a majority of the voting shares of any Portfolio
vote to approve both Agreements, they will remain in effect with respect to that
Portfolio, even if they are not approved by a majority of the voting shares of
any other Portfolio or by a majority of the voting shares of the entire Fund.
The Agreements are not assignable. The Investment Advisory Agreement may be
terminated without penalty upon 60 days' notice by the Fund's Board of Directors
or by a majority vote of its shareholders, and upon 90 days' notice by the
Investment Adviser. The Services Agreement may be terminated without penalty
upon 60 days' notice by either party.
The Investment Adviser will provide portfolio management and investment
advice to the Fund, as described in the Prospectus, with respect to the seven
current Portfolios of the Fund and any portfolio that the Fund may create in the
future if the Fund designates the Investment Adviser to act as investment
adviser and manager for such new portfolio. The Fund may, at its option, appoint
a different investment adviser for any new portfolio. The Investment Adviser
also is obligated to perform certain administrative and management services for
the Portfolios it manages and to provide all executive, administrative, clerical
and other personnel
(3)
<PAGE> 50
necessary to operate the Fund, and to pay the salaries of all these persons. The
Investment Adviser will furnish the Fund with office space, facilities, and
equipment and will pay the day-to-day expenses for their operation and
maintenance.
The Investment Adviser has entered into a Services Agreement with The
Mutual Life Insurance Company of New York (now, MONY Life Insurance Company
"MONY"), as briefly described in the Prospectus. Under this Services Agreement
MONY will provide the Investment Adviser, with some or all of the personnel,
services, facilities, supplies and equipment necessary for the Adviser to carry
out its duties to the Fund. In return the Investment Adviser will pay to MONY
all, or a portion, of the investment management fee the Investment Adviser
receives from the Fund. The Investment Adviser is a wholly-owned subsidiary of
MONY, organized under the laws of the State of New York in 1842. MONY is
licensed to do business in all fifty states, the District of Columbia, Puerto
Rico, the Virgin Islands, and certain Canadian Provinces. Because the Investment
Advisory Agreement and Services Agreement are interrelated and dependent on each
other, MONY may be deemed to be an investment adviser to the Fund for certain
regulatory purposes. Both MONY and the Investment Adviser are registered as
investment advisers under the Investment Advisers Act of 1940.
The Fund will pay the Investment Adviser an investment management fee,
which will be a daily charge equal to an annual rate of 0.50 percent of the
first $400 million of the aggregate average daily net assets of each of the
Equity Growth, Equity Income, Diversified, Intermediate Term Bond, Long Term
Bond, and Government Securities Portfolios, 0.35 percent of the next $400
million of the aggregate average daily net assets of each of those Portfolios,
and 0.30 percent of the aggregate average daily net assets of each of those
Portfolios in excess of $800 million. The Fund will also pay a daily charge
equal to an annual rate of 0.40 percent of the first $400 million of the
aggregate average daily net assets of the Money Market Portfolio, 0.35 percent
of the next $400 million of the aggregate average daily net assets of the Money
Market Portfolio, and 0.30 percent of the aggregate average daily net assets of
the Money Market Portfolio in excess of $800 million. During the one year
periods ended December 31, 1997, 1998, and 1999, the Fund paid MONY America
$1,265,983, $2,038,770 and $2,553,421, respectively, under the Investment
Advisory Agreement.
The Investment Adviser will pay for (i) the legal, accounting, and all
other expenses of organizing the Fund, initially registering and qualifying the
Fund and its securities under federal and state securities laws (including the
costs of printing any prospectuses or other materials in connection with the
initial registration or qualification); (ii) the expense in rendering investment
advice to the Fund (including any payment to MONY as agreed to in connection
with the Services Agreement); and (iii) the compensation of directors, officers
and employees of the Fund who are interested persons (as defined by the 1940
Act) of the Investment Adviser. The Fund will bear all other expenses, including
(but without limitation): (a) legal, auditing fees and expenses; (b) interest
expenses; (c) brokerage fees and commissions; (d) the fees and expense for
computing the net asset value of the Fund's capital stock attributable to the
Portfolios; (e) taxes or governmental fees; (f) the cost of preparing share
certificates or any other direct expense of issue, sale, underwriting,
distribution, redemption or repurchase of shares of the Fund; (g) the cost of
preparing and distributing reports and notices to shareholders; (h) the cost of
holding the Fund's annual or special shareholders' meetings and of any proxy
solicitation; (i) the fees or disbursements of dividend, disbursing, plan,
transfer or other agent; (j) fees or disbursements of custodians of the Fund's
assets; (k) the compensation of all directors, officers and employees of the
Fund who are not interested persons (as defined by the 1940 Act) of the
Investment Adviser; (l) the cost of any fidelity bond for any officer, agent or
employee of the Fund required under the 1940 Act or otherwise; and (m) the cost
of any directors and officers' insurance for any directors or officers of the
Fund. The Fund will also bear the cost of maintaining the effectiveness of its
registration and qualification of its capital stock for sale (including the
preparation, printing and mailing of any prospectuses or other materials
required by federal or state authorities); these expenses will be reimbursed to
the Fund by MONY Securities Corporation ("MSC"), a wholly-owned subsidiary of
MONY, as principal underwriter, as described below in "Distribution of Shares."
The Fund will bear any extraordinary or non-recurring expenses (including
expenses associated with legal claims, liabilities, litigation costs and any
related indemnification).
The Investment Adviser has agreed to reimburse the Fund for the amount, if
any, by which the aggregate ordinary operating expenses of any Portfolio in any
calendar year exceed the most restrictive expense
(4)
<PAGE> 51
limitations then in effect under state securities law or regulations, as
described in the Prospectus (State Law Restrictions).
The Fund entered into an Administrative Services Agreement with Enterprise
Capital Management, Inc. ("Enterprise") in January, 2000. Enterprise is an
affiliated company of MONY. Under this Services Agreement Enterprise will
supervise all aspects of the Fund's administrative operation, and provide the
Fund with personnel, office space, facilities, and equipment necessary for the
Fund's operations. The Fund has agreed to pay Enterprise .03% of the aggregate
average daily net assets of the Fund. Enterprise at its own expense will provide
the Fund with statistical information and records concerning its investments and
with such periodic and special reports as the Fund's Board of Directors may from
time to time request, and maintain records for the Fund.
DISTRIBUTION OF SHARES
The Fund presently intends to offer to sell its shares continuously, on a
no-load basis, to MONY Life Insurance Company of America ("MONY America") and
MONY for allocation to MONY America Variable Account L and MONY Variable Account
L to fund benefits under Flexible Premium Variable Life Insurance Contracts
issued by those companies, and to MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option Contracts issued by those
companies, and to MONY America and MONY for allocation to MONY America Variable
Account A and MONY Variable Account A to fund benefits under Flexible Payment
Variable Annuity Contracts issued by those companies, and to MONY for allocation
to Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts issued by MONY. These variable accounts ("Variable Accounts")
invest in shares of the Fund in accordance with allocation instructions received
from Contract holders. MSC will act as "principal underwriter" of the Contracts
and, therefore, of the shares of the Fund pursuant to written Underwriting
Agreements with the Fund, MONY America and MONY. The Underwriting Agreements
were initially approved by the Fund's Board of Directors, including a majority
of the non-interested directors (as defined by the 1940 Act), on December 20,
1984. Continuance of the Underwriting Agreements with the Fund, MONY and MONY
America for an additional year was most recently approved by the Fund's Board of
Directors on September 9, 1999. The agreements will continue in effect if
approved annually by the Fund's Board of Directors, including a majority of the
non-interested directors. MSC will not receive commissions or other compensation
for acting as principal underwriter of the Fund's shares, although MSC's agents
and representatives may receive sales commissions in connection with their sale
of the Contracts. Since shares will be sold only to MONY and MONY America for
allocation to the Variable Accounts, and to MONY in respect of its providing
operating capital to the Fund, it is expected that the Fund will have no
distribution expenses other than the expense of the preparation, printing and
mailing of prospectuses. MONY has agreed to bear such start-up expenses, as well
as any other distribution expenses that may arise.
MSC, as broker-dealer for the Contracts, will be reimbursed by MONY and
MONY America for these distribution expenses. If the Fund in the future is to
bear any of these distribution expenses, the Fund's Board of Directors will
formulate a written distribution plan that complies with the rules of the
Securities and Exchange Commission. Both this distribution plan and any
distribution agreement entered into pursuant to the plan will be approved by the
Fund's Board of Directors, including a majority of the non-interested directors
(as defined by the 1940 Act). The plan will then be submitted for approval at
the next annual meeting of shareholders. Thereafter, both the distribution plan
and any related distribution agreement will continue in effect if approved
annually by a majority of the Fund's Board of Directors, including a majority of
the non-interested directors (as defined by the 1940 Act).
CUSTODIAN
State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110 is the custodian of the securities held by the Portfolios of
the Fund, and is authorized to use the facilities of the Depository Trust
Company and the facilities of the book-entry system for the Federal Reserve
Bank. The Fund acts as its own transfer agent and dividend-disbursing agent.
(5)
<PAGE> 52
INDEPENDENT ACCOUNTANTS
The financial statements and the financial highlights table included in
this Registration Statement have been audited by PricewaterhouseCoopers LLP,
independent accountants, and are included herein in reliance upon the
accompanying report of that firm, which report is given upon their authority, as
experts in accounting and auditing. The business address of
PricewaterhouseCoopers LLP is 2400 Eleven Penn Center, Philadelphia,
Pennsylvania, 19103.
SERVICE MARKS LICENSE
As part of the Investment Advisory Agreement, the Investment Adviser
(acting on behalf of MONY) has granted the Fund permission to use the word
"MONY" in its corporate name and granted a royalty-free, non-exclusive license
to use any service marks adopted by MONY that are appropriate for use by the
Fund. However, the Investment Adviser may terminate this license if MONY, or a
company controlled by it, ceases to be the Fund's investment adviser. The
Investment Adviser may also terminate the license for any other reason upon 60
days' written notice. In this event, the Fund would no longer be able to use the
word "MONY" in its corporate name. In addition, the Investment Advisory
Agreement would also terminate 120 days after the Fund receives such notice,
unless a majority of the outstanding voting shares of the Fund vote to continue
the Agreement notwithstanding the license's termination.
(6)
<PAGE> 53
MANAGEMENT OF THE FUND
The Fund is supervised by a Board of Directors, an independent body that
has ultimate responsibility for the Fund's activities. The Board retains various
companies to carry out the Fund's operations, including the investment adviser
and custodian. The Board has the right and the obligation to terminate the
Fund's relationship with the investment adviser and custodian and retain a
different company if the Board believes it is in the shareholders' best
interests.
The names of all directors and officers of the Fund and the principal
occupation of each during the last five years are shown below.
DIRECTORS AND OFFICERS OF THE FUND
<TABLE>
<CAPTION>
POSITIONS HELD PRINCIPAL OCCUPATIONS
NAME AND ADDRESS WITH REGISTRANT DURING PAST 5 YEARS
---------------- --------------- ---------------------
<S> <C> <C>
Kenneth M. Levine*....... Director, Chairman of 1998 to present -- Director, Executive
1740 Broadway the Board, President of Vice President and Chief Investment
New York, New York the Fund Officer, The MONY Group Inc., 2/94 to
10019 present -- Director, (Trustee), 1/91
to present -- Executive Vice President
Age: 53 and Chief Investment Officer, MONY;
9/91 to present -- Director and
Chairman, MONY Realty Partners, Inc.,
MONY Bloomfield Hills, Inc. and 1740
Ventures, Inc.; 9/91 to
present -- Chairman,
MONY-Rockville/GP, Inc.; 7/91 to
present -- Director and Executive Vice
President, MONY Life Insurance Company
of America; 8/89 to present --
Director, 1740 Advisers, Inc.
Floyd L. Smith........... Director of the Fund Retired Vice Chairman and Chief
Naples, Florida 33963 Investment Officer, MONY.
Age: 67
Joel Davis............... Director of the Fund President, Architectural Designs, Inc.
Westport, CT 06880 (Magazine Publisher). Director,
Magazine Publishers of America.
Age: 65
Michael J. Drabb......... Director of the Fund 8/93 to present -- Director, J.P.
Convent Station, Foodservice Inc., U.S. Leather, New
New Jersey 07961 York Life MFA Series Fund, New York
Life Fund; 8/93 to 1999 -- Executive
Age: 65 Vice President, O'Brien Asset
Management.
Alan J. Hartnick......... Director of the Fund 2/93 to present -- Partner, Abelman
New York, New York Frayne & Schwab, Attorneys-at-Law;
10017 1973 to 2/93 -- Partner, Colton,
Hartnick, Yamin & Sheresky,
Age: 69 Attorneys-at-Law.
Charles P. Leone......... Vice President -- 1996 to Present -- Vice President and
1740 Broadway Compliance of the Fund Chief Corporate Compliance Officer of
New York, New York MONY Life Insurance Company; Vice
10019 President and Chief Compliance Officer
of MONY Life Insurance Company of
Age: 60 America; 5/99 to Present -- Director,
MONY Securities Corporation.
</TABLE>
(7)
<PAGE> 54
<TABLE>
<CAPTION>
POSITIONS HELD PRINCIPAL OCCUPATIONS
NAME AND ADDRESS WITH REGISTRANT DURING PAST 5 YEARS
---------------- --------------- ---------------------
<S> <C> <C>
Phillip G. Goff.......... Controller of the Fund 4/95 to Present -- Vice President and
Atlanta, Georgia Chief Financial Officer of Enterprise
30326 Capital Management, Inc., The
Enterprise Group of Funds, Inc. and
Age: 36 Enterprise Accumulation Trust.
David V. Weigel.......... Treasurer of the Fund 5/91 to present -- Vice President --
1740 Broadway Treasurer, MONY; Vice President and
New York, New York Treasurer, MONY Assets Corp. and 1740
10019 Ventures, Inc.; 8/91 to present --
Treasurer, MONY Life Insurance Company
Age: 53 of America.
Frederick C. Tedeschi.... Secretary of the Fund 1996 to present -- Vice President and
1740 Broadway Chief Counsel, Operations; 9/89 to
New York, New York 1996 -- Vice President -- Chief
10019 Counsel, Individual Financial
Services, MONY.
Age: 53
</TABLE>
- ---------------
* Mr. Levine, who is an interested person (as that term is defined in the 1940
Act), is a salaried employee of MONY.
No director or officer of the Fund who is also an officer, director or
employee of MONY or MONY America is entitled to any additional remuneration from
the Fund for his services as one of its directors or officers. Each director of
the Fund who is not an interested person of the Fund will receive a fee of
$1,750 per calendar quarter plus an additional amount of $1,000 for each meeting
of the Board, of a Committee of the Board (as provided for in the By-Laws), or
of the Fund's shareholders that he attends. Non-interested directors will also
be reimbursed for all expenses incurred in connection with attendance at
meetings.
The 1940 Act requires that a majority of the Fund's Board of Directors
shall be persons who are not interested persons of MONY, the Investment Adviser
or the Fund. The membership of the Board complies with this requirement. Certain
actions of the Board, including the annual continuance of the Investment
Advisory Agreement between the Fund and the Investment Adviser and the Services
Agreement between the Investment Adviser and MONY, must be approved by a
majority of the members of the Board who are not interested persons of MONY, the
Investment Adviser or the Fund. One of the five members of the Board, Mr. Levine
is an interested person of MONY, the Investment Adviser and the Fund (as that
term is defined in the 1940 Act) because he is an affiliated person of MONY and
the Investment Adviser.
The Fund and its investment adviser have adopted codes of ethics under rule
17j-1 of the Investment Company Act. These codes of ethics permit personnel,
subject to the conditions set forth in the code, to invest in securities,
including securities that may be purchased or held by the Fund.
VOTING RIGHTS
All shares of capital stock of the Fund have equal voting rights
(regardless of the net asset value per share) except that only shares of the
respective Portfolios are entitled to vote on matters concerning only that
Portfolio. The shares do not have cumulative voting rights. Holders of more than
50% of the shares of the Fund voting for the election of directors, can, if they
choose to do so, elect all of the Fund's directors. In such event the holders of
the remaining shares would not be able to elect any directors. Pursuant to the
1940 Act and the rules and regulations thereunder, certain matters approved by a
vote of all shareholders of the Fund may not be binding on a Portfolio whose
shareholders have not approved that matter. Each outstanding share of each
Portfolio is entitled to one vote and to participate equally in dividends and
distributions declared by that Portfolio and, upon dissolution or liquidation,
in the Portfolio's net assets after satisfying outstanding liabilities.
(8)
<PAGE> 55
The voting rights of Contract holders, and limitations on those rights, are
explained in the accompanying prospectus for the Contract. MONY and MONY America
as the owners of the assets in the Variable Accounts, are entitled to vote all
of the shares of the Fund attributable to the Variable Accounts, but they will
generally do so in accordance with the instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The Fund might under these
circumstances be deemed to be controlled by MONY and MONY America by virtue of
the definitions contained in the 1940 Act although the Fund disclaims that such
control exists.
SUBSEQUENT ANNUAL MEETINGS
The Board of Directors of the Fund has amended the By-laws of the Fund to
provide that annual meetings will not be held in any year unless the Investment
Company Act of 1940 (the "1940 Act") requires action on one or more of the
following matters: (1) election of directors; (2) approval of investment
advisory agreement; and (3) ratification of selection of independent public
accountants; and (4) approval of a distribution agreement. The 1940 Act
essentially requires election of directors by shareholders when less than a
majority then in office had been elected by shareholders, and it requires
ratification of the selection of independent public accountants when the
selection of such accountants has not previously been ratified by the
shareholders. It also requires approval of an agreement with an investment
advisor when such agreement has not previously been approved by the shareholders
(other than an agreement with an investment adviser entered into when a new
portfolio of the Fund is created). Currently, the 1940 Act requires a
distribution agreement to be approved by either the board of directors or the
shareholders.
CONTROL PERSONS
MONY America, a wholly-owned subsidiary of MONY, and MONY through their
respective Variable Accounts will own all of the Fund's outstanding shares,
other than the shares in the Fund purchased for investment by MONY to provide
operating capital for the Portfolios (and any new portfolios) of the Fund
started and any additional shares acquired by MONY through reinvestment of
dividends on those shares. The shares held by the Variable Accounts will
generally be voted in accordance with instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The shares held by MONY in respect
of its providing operating capital to the Fund's Portfolios will be voted in the
same proportions as those voted by MONY and MONY America which are held in the
Variable Accounts. The Fund might nonetheless be deemed to be controlled by MONY
and MONY America by virtue of the definitions contained in the 1940 Act although
the Fund disclaims such control. The amount of shares of each Portfolio of the
Fund owned by directors or officers of the Fund will therefore be less than one
percent.
PORTFOLIO BROKERAGE AND RELATED PRACTICES
The Investment Adviser, which is at all times subject to the direction and
supervision of the Board of Directors of the Fund, is responsible for decisions
to buy and sell securities for the Portfolios, the selection of brokers and
dealers to effect the transactions, and the negotiations of brokerage
commissions, if any. The Investment Adviser may fulfill these responsibilities
to the Fund by using the services of MONY and MONY's Investment Department
personnel under the terms of the Services Agreement between the Investment
Adviser and MONY. For more detailed information about the Services Agreement,
see Investment Advisory And Other Services at pages (3) - (5).
Transactions on a stock exchange in equity securities will be executed
primarily through brokers that will receive a commission paid by the Fund.
Transactions in money market instruments and bonds, on the other hand, will not
normally incur any brokerage commissions. Such securities, as well as equity
securities traded in the over-the-counter market, are generally traded on a
"net" basis with dealers acting as principals for their own accounts without a
stated commission, although the price of a security usually includes a profit to
the dealer. In underwritten offerings, securities are purchased at a fixed price
that includes an amount of
(9)
<PAGE> 56
compensation to the underwriter, generally referred to as the underwriter's
concession or discount. Certain of these securities may also be purchased
directly from an issuer, in which case neither commissions nor discounts are
paid.
The Investment Adviser is not obligated to deal with any dealer or group of
dealers in the execution of transactions for the Fund's Portfolios. In
connection with any securities transaction that involves a commission payment,
the Investment Adviser negotiates the commission with the broker in part on the
basis of the quality and quantity of execution services that the broker
provides, in light of generally prevailing commission rates. For the years 1997,
1998 and 1999 brokerage commissions in the amount of $18,634, $22,394 and
$20,419, respectively, were paid by the Fund. No commission was paid to a broker
that was an affiliated person of the Fund, the investment adviser or the
principal underwriter or an affiliated person of that person.
When selecting a broker or dealer in connection with a transaction for any
Portfolio, the Investment Adviser gives consideration to whether the broker or
dealer has furnished MONY or any companies controlled by MONY with certain
research services. These services, which include statistical and economic data
and research reports on particular companies and industries, are services that
brokerage houses customarily provide to institutional investors. MONY personnel
may use these services in connection with all of the investment activities of
MONY or its companies, and some of the data or services obtained in connection
with the execution of transactions for a Portfolio may be used in managing other
investment accounts of MONY or its companies. Conversely, brokers and dealers
furnishing such services may be selected for the execution of transactions of
such other accounts, while the data or service may be used by MONY personnel in
providing investment management for the Fund.
It is the present practice of the Investment Adviser to use brokers
selected primarily on the basis of their furnishing not only satisfactory
execution of the transaction but also research services such as analyses and
reports concerning issuers and industries, economic factors and portfolio
strategy. In some cases, this could cause the Fund to pay commissions or spreads
in excess of the amount which another broker would have charged for effecting a
similar transaction. In any such case, the Investment Adviser will determine in
good faith that the greater commission or spread is reasonable in relation to
the value of the services provided by the executing broker viewed in terms of
the particular transaction or the Investment Adviser's responsibilities to each
Portfolio and overall responsibilities to all the Portfolios of the Fund and
accounts under the Investment Adviser's and MONY's management. No services other
than brokerage, research and statistical services are considered by the
Investment Adviser in determining the reasonableness and amount of commissions
or spreads to be paid to any broker. All such services obtained from brokers
benefit generally all the accounts and Portfolios under the Investment Adviser's
management and are not identified in any specific account or Portfolio, and may
benefit other accounts under MONY's management. Information so received will be
in addition to and not in lieu of the services required to be performed by the
Investment Adviser.
The Investment Adviser may employ a broker affiliated with the Investment
Adviser or MONY to execute brokerage transactions on behalf of the Portfolios,
as long as the Investment Adviser obtains a price and execution as favorable as
that which would be available through the use of an unaffiliated broker, and no
less favorable than the affiliated broker's contemporaneous charges to its other
most favored, but unaffiliated, customers. The Fund may not engage in any
transactions in which MONY or any of its affiliates acts as principal, including
over-the-counter purchases and negotiated trades in which such a party acts as a
principal.
The Investment Adviser or MONY may enter into business transactions with
brokers or dealers other than using them to execute Portfolio securities
transactions for accounts the Investment Adviser manages. These other
transactions will not affect the Investment Adviser's selection of brokers or
dealers in connection with portfolio transactions for the Fund.
The portfolio turnover rates for each Portfolio of the Fund are shown in
the Prospectus (Financial Highlights).
FEDERAL INCOME TAX STATUS
The Fund and each of its portfolios intend to qualify as a "regulated
investment company" under the applicable provisions of the Internal Revenue Code
of 1986, as amended (the "Code"). To qualify for
(10)
<PAGE> 57
treatment as regulated investment companies, the Fund and each of its Portfolios
must, among other things, satisfy the following requirements:
1. At least 90 percent of the gross income of each of the Portfolios
must be derived from dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5) of the Code), and gains
from the sale or other disposition of stock or securities (as defined in
section 2(a)(36) of the Investment Company Act of 1940, as amended) or
foreign currencies, or other income (including but not limited to gains
from options, futures, or forward contracts) derived with respect to its
business of investing in such stock, securities or currencies. For purposes
of meeting this requirement, foreign currency gains which are not ancillary
to the Portfolio's principal business of investing in stock or securities
(or options and futures with respect to stock or securities) may be
excluded from qualifying income.
2. At the close of each calendar quarter, at least 50 percent of the
value of the total assets of each of the Portfolios must by represented by
cash and cash items (including receivables), Government securities,
securities of other regulated investment companies, and other securities
(limited for each portfolio in respect of any one issuer, to an amount not
greater in value than 5 percent of the value of the total assets of that
Portfolio and to not more than 10 percent of the outstanding voting
securities of the issuer).
3. At the close of each calendar quarter, no more than 25 percent of
the value of the total assets of each of the Portfolios may be invested in
the securities of any one issuer except that this limitation shall not
apply to Government securities or securities of other regulated investment
companies. In addition, at the close of each calendar quarter, no more than
25 percent of the value of the total assets of each of the Portfolios may
be invested in the securities of 2 or more issuers which the Portfolio
controls and which are engaged in the same or similar trades or businesses.
For substantially all federal income tax purposes, each Portfolio of the
Fund is a separate entity. This means that the investment results of each
Portfolio will be calculated separately from those of the other Portfolios for
purposes of determining whether each Portfolio qualifies as a regulated
investment company and for purposes of determining the net ordinary income (or
loss) and net realized capital gains (or losses).
For information regarding the federal income tax implications of the Fund
and its Portfolios qualifying as a regulated investment company, see Dividends,
Distributions and Taxes in the Prospectus.
If the Fund qualifies as a "regulated investment company" by complying with
applicable provisions of the Code and distributes all of its net income (both
ordinary income and capital gain), the Fund will be relieved of federal income
tax on the amounts distributed.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect as
interpreted by the courts and the Internal Revenue Service. For the complete
provisions, reference should be made to the pertinent Code sections and the
Treasury Regulations promulgated thereunder. The Code and these Regulations are
subject to change by legislative, administrative or judicial action. Moreover,
although "series" fund regulated investment companies have been in existence for
many years, there is very little authority interpreting the pertinent provisions
of the Code and Treasury Regulations as they are applied to a "series" fund type
of regulated investment company like the Fund.
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. Set forth below for
each Portfolio is the manner in which the data contained in such advertisements
will be calculated.
Money Market Portfolio. The performance data for this Portfolio will
reflect the "yield" and "effective yield". The "yield" of the Portfolio refers
to the income generated by an investment in the Portfolio over the
(11)
<PAGE> 58
seven day period stated in the advertisement. This income is "annualized", that
is, the amount of income generated by the investment during that week is assumed
to be generated each week over a 52-week period and is shown as a percentage of
the investment. The "effective yield" is calculated similarly, but, when
annualized, the income earned by an investment in the Portfolio is assumed to be
reinvested. The "effective yield" will be slightly higher than the "yield"
because of the compounding effect of this assumed reinvestment.
All Other Portfolios. The performance data for the Portfolios will reflect
the "yield" and "total return". The "yield" of each of the Portfolios (except
for a 7 day period for the Money Market Portfolio) refers to the income
generated by an investment in that Portfolio over the 30 day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value on the last day of the period.
"Total return" for each of these Portfolios refers to the return a Shareholder
would receive during the period indicated if a $1,000 investment was made the
indicated number of years ago. It reflects investment results less charges and
deductions of the Fund. Returns for periods exceeding one year reflect the
average annual total return for such period. Total return data may also be shown
for larger investments which would reflect the average size purchase payment
made for Contracts, the purchasers of which may allocate purchase payments to
Subaccounts which purchase shares of the Portfolios of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index and the
Lehman Brothers Government/Corporate Index, and to various ranking services,
including, without limitation, the Lipper Annuity and Closed End Survey compiled
by Lipper Analytical Services and the VARDS report compiled by Variable Annuity
Research and Data Service in order to provide the reader a basis for comparison.
PERFORMANCE DATA
Money Market Portfolio. For the seven day period ended December 31, 1999,
the yield was 5.81% and the effective yield was 5.98%.
The yield was calculated by dividing the sum of dividends declared during
the 7 day period on one share purchased at the beginning of the 7 day period by
the value on the first day (the resulting quotient being the "Base Period
Return") and multiplying the Base Period Return by 365 divided by 7 to obtain
the annualized yield.
The effective yield was calculated by compounding the Base Period Return
calculated in accordance with the preceding paragraph, adding 1 to the Base
Period Return, raising that sum to a power equal to 365 divided by 7 and
subtracting 1 from the result.
Dividends reflect the net investment income of the Portfolio. Net
investment income reflects earnings on investments less expenses of the Fund
including the Investment Management Fee (which for calculating the yield and
effective yield quoted above will be the fee which would be charged based upon
the amount of assets under management on the last day of the period for which
the quoted yield is stated, which for the yield and the effective yield quoted
above is .40%). It is the practice of the Money Market Portfolio to pay
dividends daily in the form of shares (thereby maintaining the value of one
share of the Money Market Portfolio at $1.00). However, for the purpose of these
calculations, it has been assumed that no additional shares have been issued and
that dividends are paid in cash.
All Portfolios including the Money Market Portfolio. The average annual
total return for the one, five, and ten year periods ended December 31, 1999,
and for the period since inception through December 31, 1999, are shown in the
following table.
(12)
<PAGE> 59
MONY SERIES FUND, INC.
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD SINCE
FOR THE YEAR FOR THE FIVE TEN YEARS INCEPTION
ENDED YEARS ENDED ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
PORTFOLIO 1999 1999 1999 1999
--------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Equity Growth (3/4/85)*.................... 37.98% 28.99% 18.06% 16.99%
Equity Income (3/4/85)*.................... 8.04% 20.56% 13.75% 14.66%
Intermediate Term Bond (3/1/85)*........... 0.23% 6.67% 6.82% 7.92%
Long Term Bond (3/20/85)*.................. -7.60% 8.39% 8.11% 9.53%
Government Securities (5/1/91)*............ 0.66% 5.78% N.A. 5.98%
Diversified (4/3/85)*...................... 30.53% 23.87% 15.08% 14.37%
Money Market (7/29/85)*.................... 4.98% 5.25% 4.99% 5.47%
</TABLE>
- ---------------
* Inception date.
The table above assumes that a $1,000 payment was made at the beginning of
the period shown, that no further payments were made, and that any distributions
from the assets of the Portfolio were reinvested. The average annual total
return percentages shown in the table reflect the average annualized historical
rates of return, deductions for all charges, expenses, and fees of the Fund. The
table does not reflect charges and deductions which are, or may be, imposed
under the Contracts.
YIELD
The 30 day yield for each of the Portfolios, other than the Money Market
Portfolio, for the 30-day period ended December 31, 1999 is shown in the
following table.
MONY SERIES FUND, INC.
YIELD FOR 30-DAY PERIOD ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM GOVERNMENT
GROWTH INCOME TERM BOND BOND SECURITIES DIVERSIFIED
------ ------ ------------ --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Yield for 30 days ended
December 31, 1999............ 2.73% 1.93% 6.14% 6.30% 5.66% 4.62%
</TABLE>
The yield shown in the table above is computed by subtracting from the net
investment income of the Portfolio of the Fund charges and expenses of the Fund
with respect to the Portfolio and dividing the result by the value of the
Portfolio. For the Equity Growth and Equity Income Portfolios and for the stocks
and equity securities of the Diversified Portfolio of the Fund, net investment
income is the net of the dividends accrued ( 1/360 of the stated dividend rate
multiplied by the number of days the particular security is in the Portfolio) on
all equity securities during the 30-day period and expenses accrued for the
period. It does not reflect capital gains or losses. For the Intermediate Term
Bond, Long Term Bond and the Government Securities Portfolios and the debt
obligations held by the Diversified Portfolio of the Fund, net investment income
is the net of interest earned on the obligation held by the Portfolio and
expenses accrued for the period. Interest earned on the obligation is determined
by (i) computing the yield to maturity based on the market value of each
obligation held in the corresponding Portfolio at the close of business on the
thirtieth day of the period (or as to obligations purchased during that 30-day
period, based on the purchase price plus accrued interest); (ii) dividing the
yield to maturity for each obligation by 360; (iii) multiplying that quotient by
the market value of each obligation (including actual accrued interest) for each
day of the subsequent 30-day month that the obligation is in the Portfolio; and
(iv) totaling the interest on each obligation. Discount or premium amortization
is recomputed at the beginning of each 30-day period and with respect to
discount and premium on mortgage or other receivables-backed obligations subject
to monthly payment of principal and interest, discount and premium is amortized
on the remaining security, based on the cost of the security, to the
(13)
<PAGE> 60
weighted average maturity date, if available, or to the remaining term of the
security, if the weighted average maturity date is not available. Gain or loss
attributable to actual monthly paydowns is reflected as an increase or decrease
in interest income during that period.
The yield shown reflects deductions for all charges, expenses, and fees of
the Fund. The table does not reflect charges and deductions which are, or may
be, imposed under the Contracts.
Net investment income of the Portfolio less all charges and expenses of the
Fund with respect to the Portfolio is divided by the product of the average
daily number of shares outstanding and the net asset value of one share on the
last day of the period. The sum of the quotient and 1 is raised to the 6th
power, 1 is subtracted from the result, and then multiplied by 2.
The table below shows total returns for the year to date (January 1, 2000
to February 11, 2000) assuming a $1,000 payment made at the beginning of the
period and reflecting the same assumptions as the total return table appearing
on page (13):
MONY SERIES FUND, INC.
YEAR TO DATE TOTAL RETURN
ASSUMING $1,000 PAYMENT AT BEGINNING OF PERIOD
<TABLE>
<CAPTION>
JANUARY 1, TO
FEBRUARY 11,
SUBACCOUNT 2000
---------- -------------
<S> <C>
Equity Growth............................................... 2.61%
Equity Income............................................... -9.61%
Intermediate Term Bond...................................... -0.37%
Long Term Bond.............................................. 1.30%
Government Securities....................................... -0.37%
Diversified................................................. -2.49%
Money Market................................................ 0.63%
</TABLE>
(14)
<PAGE> 61
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Equity Growth Portfolio of Investments...................... F-2
Equity Income Portfolio of Investments...................... F-5
Intermediate Term Bond Portfolio of Investments............. F-8
Long Term Bond Portfolio of Investments..................... F-12
Diversified Portfolio of Investments........................ F-16
Government Securities Portfolio of Investments.............. F-19
Money Market Portfolio of Investments....................... F-22
Statements of Assets and Liabilities as of December 31,
1999...................................................... F-26
Statements of Operations for the year ended December 31,
1999...................................................... F-28
Statements of Changes in Net Assets for the Years Ended
December 31, 1999 and 1998................................ F-30
NOTES TO FINANCIAL STATEMENTS............................... F-34
REPORT OF INDEPENDENT ACCOUNTANTS........................... F-39
</TABLE>
F-1
<PAGE> 62
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
During the fourth quarter and for much of the year, technology, including
telecom equipment, was the major driving force in the market. No other sector
came close in influence on the popular averages. There was good reason for this;
investors viewed these companies as being able to grow earnings without the need
to raise prices, in the no pricing power environment that many other companies
found themselves. These are great companies with very attractive future
opportunities and markets, but from time to time valuations can run ahead of
fundamentals.
The Equity Growth Portfolio has a substantial position in technology and
telecommunications equipment and this contributed to 1999 returns. With
valuations where they are, this area will not be increased, and may be reduced
somewhat as the year goes on. Current strategy is emphasizing healthcare,
especially biotech and drugs, entertainment including cable television and radio
and energy with an emphasis on oil service and drillers. These areas have
attractive earnings outlooks, are more reasonably valued and are not as
exploited as the tech sector. The Portfolio Manager still likes the technology
outlook, but is not committing new money to the area because of last year's very
strong outperformance.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
MONY EQUITY GROWTH S & P 500
------------------ ------------
<S> <C> <C>
12/31/89 $ 10000.00 $ 10000.00
12/31/90 $ 9848.81 $ 9689.48
12/31/91 $ 13263.50 $ 12641.70
12/31/92 $ 13146.90 $ 13604.70
12/31/93 $ 14424.10 $ 14976.00
12/31/94 $ 14733.60 $ 15173.80
12/31/95 $ 19233.40 $ 20876.60
12/31/96 $ 23262.30 $ 25668.90
12/31/97 $ 30398.60 $ 34232.80
12/31/98 $ 38136.70 $ 44012.30
12/31/99 $ 52620.90 $ 53269.30
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
37.98% 28.99% 18.06%
- --------------------------------------------------------------------------------
</TABLE>
MONY Series Fund performance numbers assume dividend reinvestment and
include all fees. Past performance is no guarantee of future results. The
investment returns and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
* The S&P 500 is an unmanaged index that includes the common stocks of 500
companies that tend to be leaders in important industries within the U.S.
economy. It assumes the reinvestment of dividends and distributions and does not
include any management fees or expenses. One cannot invest in an index.
F-2
<PAGE> 63
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 98.56%
- ------------------------------------------------------------------
AUTOMOTIVE -- 0.79%
Ford Motor Company 500 $ 26,719
----------
BANKING -- 2.59%
Bank of New York Company Inc. 700 28,000
Chase Manhattan Corporation 400 31,075
FleetBoston Financial Corporation 800 27,850
----------
86,925
----------
BROADCASTING -- 4.99%
CBS Corporation (a) 800 51,150
Cumulus Media Inc. (Class A) (a) 800 40,600
Infinity Broadcasting Corporation (Class A)
(a) 900 32,569
Time Warner Inc. 600 43,462
----------
167,781
----------
CABLE -- 3.68%
Cablevision Systems Corporation (Class A)
(a) 700 52,850
Comcast Corporation (a) 1,400 70,787
----------
123,637
----------
CHEMICALS -- 2.37%
Dow Chemical Company 300 40,087
Du Pont (E. I.) de Nemours & Company 600 39,525
----------
79,612
----------
COMPUTER HARDWARE -- 9.31%
Cisco Systems Inc. (a) 800 85,700
Dell Computer Corporation (a) 700 35,700
EMC Corporation (a) 600 65,550
Hewlett Packard Company 200 22,788
Intel Corporation 600 49,387
International Business Machines Corporation 500 54,000
----------
313,125
----------
COMPUTER SERVICES -- 4.10%
America Online Inc. (a) 800 60,350
Sun Microsystems Inc. (a) 1,000 77,437
----------
137,787
----------
COMPUTER SOFTWARE -- 5.43%
Microsoft Corporation (a) 700 81,725
Oracle Corporation (a) 900 100,856
----------
182,581
----------
CRUDE & PETROLEUM -- 4.63%
BP Amoco (ADR) 600 35,587
Chevron Corporation 300 25,988
Exxon Mobil Corporation 900 72,506
Texaco Inc. 400 21,725
----------
155,806
----------
ELECTRICAL EQUIPMENT -- 4.25%
Emerson Electric Company 600 34,425
General Electric Company 700 108,325
----------
142,750
----------
ENERGY -- 0.77%
Atlantic Richfield Company 300 25,950
----------
HOTELS & RESTAURANTS -- 1.20%
McDonald's Corporation 1,000 40,313
----------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
MACHINERY -- 2.26%
Applied Materials Inc. (a) 600 $ 76,013
----------
MEDICAL SERVICES -- 2.01%
Biogen Inc. (a) 800 67,600
----------
MISC. FINANCIAL SERVICES -- 3.30%
American Express Company 300 49,875
Citigroup Inc. 1,100 61,119
----------
110,994
----------
MULTI-LINE INSURANCE -- 1.61%
American International Group Inc. 500 54,063
----------
OIL SERVICES -- 6.32%
Baker Hughes Inc. 700 14,744
BJ Services Company (a) 900 37,631
Diamond Offshore Drilling Inc. 800 24,450
Halliburton Company 500 20,125
Kerr-McGee Corporation 600 37,200
Schlumberger Ltd. 400 22,500
Tidewater Inc. 700 25,200
Transocean Sedco Forex Inc. 77 2,609
Weatherford International Inc. (a) 700 27,956
----------
212,415
----------
PAPER & FOREST PRODUCTS -- 1.81%
Bowater Inc. 500 27,156
International Paper Company 600 33,863
----------
61,019
----------
PHARMACEUTICALS -- 11.79%
American Home Products Corporation 800 31,550
Amgen Inc. (a) 1,400 84,087
Bristol-Myers Squibb Company 600 38,513
Eli Lilly & Company 500 33,250
Johnson & Johnson 500 46,562
Merck & Company Inc. 300 20,119
Pfizer Inc. 600 19,463
Pharmacia & Upjohn Inc. 300 13,500
Schering-Plough Corporation 700 29,531
Smithkline Beecham (ADR) 600 38,662
Warner-Lambert Company 500 40,969
----------
396,206
----------
RETAIL -- 3.48%
Home Depot Inc. 900 61,706
Wal-Mart Stores Inc. 800 55,300
----------
117,006
----------
TECHNOLOGY -- 1.44%
Texas Instruments Inc. 500 48,438
----------
TELECOMMUNICATIONS -- 14.46%
AT & T Corporation 1,100 55,825
General Instrument Corporation (a) 1,000 85,000
Global Crossing Ltd. (a) 1,100 55,000
Lucent Technologies Inc. 800 59,850
MCI WorldCom Inc. (a) 900 47,756
Qwest Communications International Inc. (a) 1,500 64,500
Sprint Corporation 800 53,850
Tellabs Inc. (a) 1,000 64,188
----------
485,969
----------
</TABLE>
See notes to financial statements.
F-3
<PAGE> 64
MONY SERIES FUND, INC.
EQUITY GROWTH PORTFOLIO -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
WIRELESS COMMUNICATIONS -- 5.97%
Motorola Inc. 300 $ 44,175
Nokia Corporation (ADR) 500 95,000
Sprint PCS (a) 600 61,500
----------
200,675
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,710,541) 3,313,384
- ------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $1,710,541) $3,313,384
OTHER ASSETS LESS LIABILITIES -- 1.44% 48,461
- ------------------------------------------------------------------
NET ASSETS -- 100% $3,361,845
==================================================================
</TABLE>
(a) Non-income producing security.
ADR = American Depository Receipt.
See notes to financial statements.
F-4
<PAGE> 65
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
The major part of the overvaluation and over enthusiasm in the market is in
the technology sector. This was the only game in town for the fourth quarter and
for much of the year. Investors saw these companies as being able to prosper and
grow, even in the no pricing power environment that existed for the rest of the
economy. The Equity Income Portfolio cannot own most of these technology stocks
because they have little or no dividend yield, and as a result the fund lagged
the popular averages which are heavily influenced by the tech sector.
The average company had more modest returns than the averages, many
industries and stocks were flat to down for the year and many experienced bear
market size declines. The stock market is very richly valued at current levels
but the market risk is concentrated in a relatively small number of very big
companies. The rest of the market is more reasonably priced, and while these
stocks will also sell off in a market decline, they are not as extended as the
recent leaders.
The Equity Income Portfolio's strategy is emphasizing these neglected parts
of the market. Strong growth should favor the energy and basic materials sector,
both should have above average earnings gains this year. The same is true of the
machinery and capital spending related industries. The drug stocks
underperformed in 1999 as growth investors moved toward the tech stocks. They
and the telecommunications sectors should do better this year. These stocks all
have reasonable valuations of rising earnings, above average yields and they
have already experienced significant declines. They will also benefit from any
broadening of the market or increase in defensiveness by investors.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
MONY EQUITY INCOME S & P 500
------------------ -----------
<S> <C> <C>
12/31/89 $ 10000.00 $ 10000.00
12/31/90 $ 9325.27 $ 9689.48
12/31/91 $ 11220.80 $ 12641.70
12/31/92 $ 12374.60 $ 13604.70
12/31/93 $ 14124.70 $ 14976.00
12/31/94 $ 14235.30 $ 15173.80
12/31/95 $ 18950.30 $ 20876.60
12/31/96 $ 22694.50 $ 25668.90
12/31/97 $ 29788.30 $ 34232.80
12/31/98 $ 33552.00 $ 44012.30
12/31/99 $ 36250.50 $ 53269.30
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
8.04% 20.56% 13.75%
- --------------------------------------------------------------------------------
</TABLE>
MONY Series Fund performance numbers assume dividend reinvestment and
include all fees. Past performance is no guarantee of future results. The
investment returns and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
* The S&P 500 is an unmanaged index that includes the common stocks of 500
companies that tend to be leaders in important industries within the U.S.
economy. It assumes the reinvestment of dividends and distributions and does not
include any management fees or expenses. One cannot invest in an index.
F-5
<PAGE> 66
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 98.38%
- --------------------------------------------------------------------
AEROSPACE -- 3.68%
Honeywell International Inc. 4,000 $ 230,750
Northrop Grumman Corporation 3,500 189,219
United Technologies Corporation 4,000 260,000
-----------
679,969
-----------
AUTOMOTIVE -- 2.34%
Ford Motor Company 4,000 213,750
General Motors Corporation 3,000 218,062
-----------
431,812
-----------
BANKING -- 5.46%
Bank of America Corporation 2,800 140,525
Bank of New York Company Inc. 5,200 208,000
Chase Manhattan Corporation 2,500 194,219
FleetBoston Financial Corporation 5,000 174,062
J. P. Morgan & Company Inc. 700 88,638
Wells Fargo & Company 5,000 202,187
-----------
1,007,631
-----------
CHEMICALS -- 3.61%
Dow Chemical Company 2,200 293,975
Du Pont (E.I.) de Nemours &
Company 3,500 230,563
Rohm & Haas Company 3,500 142,406
-----------
666,944
-----------
COMPUTER HARDWARE -- 0.86%
Xerox Corporation 7,000 158,813
-----------
CONGLOMERATES -- 2.21%
Minnesota Mining & Manufacturing
Company 2,200 215,325
Textron Inc. 2,500 191,719
-----------
407,044
-----------
CONSUMER DURABLES -- 0.81%
Dana Corporation 5,000 149,688
-----------
CONSUMER NON-DURABLES -- 1.25%
Avon Products Inc. 7,000 231,000
-----------
CONSUMER PRODUCTS -- 3.48%
Colgate-Palmolive Company 4,000 260,000
Kimberly-Clark Corporation 2,500 163,125
Procter & Gamble Company 2,000 219,125
-----------
642,250
-----------
CRUDE & PETROLEUM -- 6.40%
BP Amoco (ADR) 3,800 225,388
Chevron Corporation 2,000 173,250
Exxon Mobil Corporation 6,000 483,375
Royal Dutch Petroleum Company
(ADR) 2,700 163,181
Texaco Inc. 2,500 135,781
-----------
1,180,975
-----------
ELECTRICAL EQUIPMENT -- 5.85%
Emerson Electric Company 4,000 229,500
General Electric Company 5,500 851,125
-----------
1,080,625
-----------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 6.38%
Atlantic Richfield Company 2,000 $ 173,000
Consolidated Natural Gas Company 2,000 129,875
Duke Energy Corporation 4,500 225,563
El Paso Energy Corporation 4,500 174,656
Enron Corporation 4,500 199,688
Williams Companies Inc. 9,000 275,062
-----------
1,177,844
-----------
FOOD & BEVERAGES & TOBACCO -- 0.25%
Philip Morris Companies Inc. 2,000 46,375
-----------
INSURANCE -- 1.75%
Cigna Corporation 4,000 322,250
-----------
MACHINERY -- 3.58%
Caterpillar Inc. 4,300 202,369
Deere & Company 5,000 216,875
Pitney Bowes Inc. 5,000 241,562
-----------
660,806
-----------
MANUFACTURING -- 0.98%
Eaton Corporation 2,500 181,562
-----------
METALS & MINING -- 1.48%
Alcoa Inc. 3,300 273,900
-----------
MISC. FINANCIAL SERVICES -- 1.90%
Citigroup Inc. 6,300 350,044
-----------
MULTI-LINE INSURANCE -- 0.87%
Lincoln National Corporation 4,000 160,000
-----------
OIL SERVICES -- 4.94%
Baker Hughes Inc. 5,500 115,844
Diamond Offshore Drilling Inc. 5,000 152,812
Halliburton Company 4,000 161,000
Kerr-McGee Corporation 3,200 198,400
Schlumberger Ltd. 2,500 140,625
Tidewater Inc. 3,500 126,000
Transocean Sedco Forex Inc. 484 16,305
-----------
910,986
-----------
PROPERTY-CASUALTY INSURANCE -- 1.37%
Chubb Corporation 4,500 253,406
-----------
PAPER & FOREST PRODUCTS -- 6.17%
Bowater Inc. 4,000 217,250
Georgia-Pacific Group 6,000 304,500
International Paper Company 6,500 366,844
Temple-Inland Inc. 3,800 250,562
-----------
1,139,156
-----------
PHARMACEUTICALS -- 12.23%
Abbott Laboratories 4,500 163,406
American Home Products Corporation 6,000 236,625
Baxter International Inc. 4,000 251,250
Bristol-Myers Squibb Company 4,400 282,425
Eli Lilly & Company 2,800 186,200
Johnson & Johnson 2,500 232,813
Merck & Company Inc. 3,700 248,131
Pharmacia & Upjohn Inc. 4,500 202,500
Smithkline Beecham (ADR) 4,000 257,750
Warner-Lambert Company 2,400 196,650
-----------
2,257,750
-----------
PRINTING & PUBLISHING -- 1.17%
McGraw-Hill Companies Inc. 3,500 215,687
-----------
</TABLE>
See notes to financial statements.
F-6
<PAGE> 67
MONY SERIES FUND, INC.
EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
RAW MATERIALS -- 2.38%
Phelps Dodge Corporation 2,800 $ 187,950
Weyerhaeuser Company 3,500 251,344
-----------
439,294
-----------
REAL ESTATE -- 2.18%
Boston Properties Inc. 3,000 93,375
Crescent Real Estate Equities
Company 5,000 91,875
Equity Office Properties Trust 4,500 110,812
Equity Residential Properties
Trust 2,500 106,719
-----------
402,781
-----------
TELECOMMUNICATIONS -- 12.88%
AT&T Corporation 6,300 319,725
Bell Atlantic Corporation 4,800 295,500
BellSouth Corporation 6,000 280,875
Global Crossing Ltd. (a) 6,500 325,000
GTE Corporation 4,000 282,250
SBC Communications Inc. 6,500 316,875
Sprint Corporation 4,000 269,250
US West Inc. 4,000 288,000
-----------
2,377,475
-----------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 1.92%
CMS Energy Corporation 5,500 $ 171,531
Edison International 7,000 183,313
-----------
354,844
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $12,891,016) $18,160,911
- --------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
----------------
<S> <C> <C>
COMMERCIAL PAPER -- 1.57%
- --------------------------------------------------------------------
Conagra Inc. 7.00% due 01/12/00 $290,000 $ 289,380
- --------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $289,380) $ 289,380
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $13,180,396) $18,450,291
OTHER ASSETS LESS LIABILITIES -- 0.05% 9,467
- --------------------------------------------------------------------
NET ASSETS -- 100% $18,459,758
====================================================================
</TABLE>
(a) Non-income producing security.
ADR = American Depository Receipt.
See notes to financial statements.
F-7
<PAGE> 68
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 December
31, 1999.
For the quarter ended December 31, 1999, the Portfolio earned a total
return of .1%. For the one year period ended December 31, 1999, the Portfolio
earned a total return of .23% and for the five and ten year periods the
Portfolio earned an average annual return of 6.67% and 6.82% respectively.
The bond market posted mixed returns during the fourth quarter, with
Treasuries underperforming all other sectors. 1999 was the second worst year on
record for US Treasuries. Interest rates, as measured by the benchmark five-year
U.S. Treasury, surged another 59 basis points to close the quarter at 6.34%; 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
underperformed long rates, as market participants priced in another rate hike by
The Federal Reserve Bank. The Mortgage-backed sector was the best performer,
followed by Asset-backed securities and Corporates.
The U.S. economy continued its unabated robust growth. High productivity,
increased consumer and capital spending, low inflation and record low
unemployment have fueled the current economic expansion which will probably be
the longest expansion in history. In November, the Federal Reserve Board found
it appropriate to raise the Fed Funds rate by another 25 basis points to cool
down economic activity and preemptively stifle inflation. In fact, the Fed took
back the 75 basis points of easings implemented to stall the global financial
crisis of 1998.
The corporate sector performed well this quarter, as spreads tightened an
average of 15 basis points. The corporate basis tightened after the expected
corporate bond issuance failed to materialize, liquidity improved and Y2K
concerns abated. Despite last year's deterioration in credit quality, we
continue to be bullish on corporates and expect the sector to outperform in
early 2000 given the fact that credit premia is at historical wide levels.
Our outlook for the year 2000 is that the resilient growth of the U.S.
economy will start to slow, as higher interest rates work their way through the
system. Commodity prices will probably continue to recover but inflation will
most likely remain in check. It is expected that the Fed will raise rates at
their next meeting in February and that the yield curve will continue its
flattening trend.
We maintained our overweight position in spread product this quarter, as we
expected it to outperform Treasuries. We also recalibrated our U.S. Treasuries
positions to reflect our view towards a flatter yield curve. The Portfolio's
breakdown by sectors as a percentage of net assets is as follows: Corporates
50%, U.S. Treasuries 31%, Agencies 15%, with the balance in other/cash
equivalents. The average Moody's rating on the bonds in the Portfolio is Aa3,
reflecting emphasis on higher quality debt issuers.
F-8
<PAGE> 69
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
MONY INTERMEDIATE BOND LEHMAN BROS INT GOV/CORP INDEX
---------------------- ------------------------------
<S> <C> <C>
12/31/89 $ 10000.00 $ 10000.00
12/31/90 $ 10695.90 $ 10915.70
12/31/91 $ 12330.40 $ 12511.50
12/31/92 $ 13182.60 $ 13409.20
12/31/93 $ 14217.30 $ 14587.40
12/31/94 $ 14001.20 $ 14305.80
12/31/95 $ 16076.60 $ 16499.50
12/31/96 $ 16669.80 $ 17167.10
12/31/97 $ 17954.40 $ 18518.00
12/31/98 $ 19289.60 $ 20080.50
12/31/99 $ 19334.90 $ 20157.80
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
0.23% 6.67% 6.82%
- --------------------------------------------------------------------------------
</TABLE>
MONY Series Fund performance numbers assume dividend reinvestment and
include all fees. Past performance is no guarantee of future results. The
investment returns and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
The Lehman Brothers Intermediate Government/Corporate Bond Index is an
unmanaged index of all investment grade bonds in the Lehman Brothers Corporate
Bond Index and Government Bond Index that have maturities of one to 9.99 years.
It includes reinvested interest and excludes any transaction or holding charges.
One cannot invest in an index.
F-9
<PAGE> 70
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 50.35%
- --------------------------------------------------------------------
Arizona Public Service Company,
5.875% due 02/15/04 $1,000,000 $ 944,038
Associates Corporation of North
America,
6.000% due 06/15/00 1,000,000 998,572
Associates Corporation of North
America,
6.250% due 11/01/08 1,000,000 922,860
BankBoston Corporation,
6.625% due 02/01/04 1,000,000 972,086
Bear Stearns Company Inc.,
7.250% due 10/15/06 1,000,000 970,684
Chase Manhattan Corporation Capital,
6.313% due 08/01/28 1,000,000 952,964
Chemical Master Credit Card Trust
One,
5.980% due 09/15/08 1,000,000 951,075
Comed Transitional Funding Trust,
5.740% due 12/25/10 1,000,000 902,285
Commonwealth Edison Company,
7.000% due 07/01/05 1,000,000 982,371
Conoco Inc.,
5.900% due 04/15/04 1,000,000 954,362
CSX Corporation,
7.250% due 05/01/04 1,000,000 991,119
Delphi Automotive Systems
Corporation,
6.125% due 05/01/04 1,000,000 947,756
Finova Capital Corporation,
6.250% due 11/01/02 1,000,000 971,846
First Data Corporation,
6.750% due 07/15/05 1,000,000 971,329
Ford Motor Credit Company,
6.500% due 02/28/02 1,000,000 991,075
General Electric Capital
Corporation,
6.660% due 05/01/18 1,000,000 1,000,144
General Motors Acceptance
Corporation,
7.125% due 05/01/03 1,000,000 997,290
Illinois Central Railroad Company,
6.750% due 05/15/03 1,000,000 989,263
International Bank For
Reconstruction & Development,
5.625% due 03/17/03 1,000,000 969,149
Laidlaw Inc.,
7.700% due 08/15/02 1,000,000 982,840
National Rural Utilities Cooperative
Finance,
6.750% due 09/01/01 1,000,000 998,636
Peco Energy Transition Trust,
6.130% due 03/01/09 1,000,000 920,765
Philip Morris Companies Inc.,
7.500% due 04/01/04 1,000,000 979,374
Potash Corporation Saskatchewan
Inc.,
7.125% due 06/15/07 1,000,000 947,930
Potomac Edison Company,
8.000% due 06/01/06 1,000,000 1,003,572
Provident Bank Cincinnati Ohio,
6.375% due 01/15/04 1,000,000 948,181
Tyco International Group,
6.375% due 06/15/05 1,000,000 938,626
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
USA Waste Services Inc.,
7.000% due 10/01/04 $1,000,000 $ 902,364
Worldcom Inc., Georgia,
6.125% due 08/15/01 1,000,000 989,542
-----------
27,992,098
-----------
TOTAL CORPORATE BONDS AND NOTES
(IDENTIFIED COST $28,942,669) 27,992,098
- --------------------------------------------------------------------
COMMERCIAL PAPER -- 0.41%
- --------------------------------------------------------------------
General Motors Acceptance
Corporation,
6.280% due 02/15/00 128,000 126,995
Merrill Lynch & Company Inc.,
5.800% due 01/24/00 100,000 99,629
-----------
226,624
-----------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $226,995) $ 226,624
- --------------------------------------------------------------------
SHORT-TERM GOVERNMENT SECURITIES -- 0.31%
- --------------------------------------------------------------------
Freddie Mac Discount Notes,
5.600% due 02/04/00 175,000 174,075
-----------
TOTAL SHORT-TERM GOVERNMENT SECURITIES
(IDENTIFIED COST $174,075) 174,075
- --------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 14.17%
- --------------------------------------------------------------------
Federal Home Loan Bank,
5.125% due 04/17/01 3,000,000 2,952,615
Federal National Mortgage
Association REMIC,
7.000% due 01/25/03 1,000,000 993,995
Freddie Mac,
6.000% due 07/20/01 1,000,000 991,288
Freddie Mac,
6.500% due 02/15/21 2,000,000 1,965,970
Student Loan Marketing Association,
5.780% due 10/25/10 1,000,000 971,305
-----------
7,875,173
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $7,959,803) 7,875,173
- --------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 30.60%
- --------------------------------------------------------------------
U.S. Treasury Notes,
6.625% due 07/31/01 1,500,000 1,510,313
U.S. Treasury Notes,
6.500% due 05/31/02 3,000,000 3,015,939
U.S. Treasury Notes,
5.750% due 11/30/02 2,000,000 1,970,000
U.S. Treasury Notes,
5.750% due 08/15/03 2,000,000 1,958,750
U.S. Treasury Notes,
7.500% due 02/15/05 1,000,000 1,043,438
U.S. Treasury Notes,
6.875% due 05/15/06 1,500,000 1,526,719
U.S. Treasury Notes,
6.500% due 10/15/06 6,000,000 5,985,000
-----------
17,010,159
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $17,586,879) $17,010,159
- --------------------------------------------------------------------
</TABLE>
See notes to financial statements.
F-10
<PAGE> 71
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS -- 1.72%
- --------------------------------------------------------------------
Province of British Columbia,
7.250% due 09/01/36 $1,000,000 $ 958,580
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $992,897) 958,580
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $55,883,318) $54,236,709
OTHER ASSETS LESS LIABILITIES -- 2.44% 1,358,461
- --------------------------------------------------------------------
NET ASSETS -- 100% $55,595,170
====================================================================
</TABLE>
See notes to financial statements.
F-11
<PAGE> 72
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
20.5 years and a duration of 10.1 years as of December 31, 1999.
For the quarter ended December 31, 1999, the Portfolio earned a total
return of -1.00%. For the one year period ended December 31, 1999, the Portfolio
earned a total return of -7.60% and for the five and ten year periods the
Portfolio earned an average annual return of 8.39% and 8.11% respectively.
The U.S. economy finished 1999 on a strong note pushing US Treasury and
Agency yields up in the fourth quarter. The resulting lower prices gave the bond
market one of its worst performances in recent years. Benchmark thirty-year U.S.
Treasury closed the year at 6.50%, up from 6.05% in the third quarter.
Short-term interest rates have risen substantially more than long rates due to
the anticipation of further rate hikes by The Federal Reserve Bank, thereby
resulting in a historically flat yield curve. Spread product such as mortgage-
backed, asset-backed and corporate securities all outperformed U.S. Treasury
securities throughout the quarter.
The economy accelerated at year-end, showing surprising resilience to the
rebound in oil prices, tight labor markets, and a strong consumer sector. Robust
vehicle and retail sales, high consumer confidence, and elevated equity
valuations were contributory factors to the expanding economy. The Fed has been
making it increasingly clear that they are willing to continue tightening until
solid evidence appears of slower growth. We have already seen some initial
impact of higher rates on interest rate sensitive sectors such as the slow down
in construction activity. While we believe the Fed will raise interest rates in
the first quarter of 2000, we project a modest slowdown in economic activity
later in the year. Expectations are for higher mortgage rates, slower consumer
spending, moderating job growth, and a slight uptick in inflation.
Fourth quarter activity in the Portfolio involved the reduction of U.S.
Treasury positions in order to maintain greater exposure to higher yielding
corporate sectors such as energy, aerospace, and finance. The Portfolio had
increased exposure in the energy sector back in the third quarter reflecting the
prospect for continued higher oil prices and favorable earnings momentum in the
energy sector. This strategy will continue for the near term. The upbeat outlook
for the global economy bodes well for corporate fundamentals in the near term.
The new issue corporate supply should not be heavy therefore the technicals in
the corporate bond market could be exceptionally strong. We anticipate corporate
performance should continue to do well in the first quarter of 2000 and will
continue to focus on sectors that offer maximum amount of yield commensurate
with the appropriate amount of risk.
The Portfolio is currently invested in 35 corporate issuers, comprising 43%
of the Portfolio's net assets, U.S. Treasury issues represent 48%, with 5% in
mortgage and asset-backed agency obligations. The remaining 4% represents
other/cash equivalents. Our continued emphasis on higher quality is reflected in
the average Moody's rating on issues in the Portfolio is Aa2.
F-12
<PAGE> 73
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS LONG GOV/CORP
MONY LONG TERM BOND INDEX
------------------- -----------------------------
<S> <C> <C>
12/31/89 $ 10000.00 $ 10000.00
12/31/90 $ 10626.20 $ 10645.00
12/31/91 $ 12498.50 $ 12723.90
12/31/92 $ 13596.20 $ 13809.50
12/31/93 $ 15531.00 $ 16040.60
12/31/94 $ 14577.60 $ 14902.30
12/31/95 $ 18956.60 $ 19365.50
12/31/96 $ 18897.80 $ 19393.30
12/31/97 $ 21437.90 $ 22209.40
12/31/98 $ 23598.80 $ 24823.60
12/31/99 $ 21804.30 $ 22923.50
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------- ------- --------
<S> <C> <C>
- -7.60% 8.39% 8.11%
- --------------------------------------------------------------------------------
</TABLE>
MONY Series Fund performance numbers assume dividend reinvestment and
include all fees. Past performance is no guarantee of future results. The
investment returns and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
The Lehman Brothers Long Government/Corporate Bond Index is an unmanaged
index of all investment grade bonds in the Lehman Brothers Corporate Bond Index
and Government Bond Index that have maturities of ten years or longer. It
includes reinvested interest and excludes any transaction or holding charges.
One cannot invest directly in an index.
F-13
<PAGE> 74
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 43.11%
- --------------------------------------------------------------------
Aetna Services Inc.,
7.625% due 08/15/26 $ 1,000,000 $ 897,006
Apache Finance Canada Corporation,
7.750% due 12/15/29 1,000,000 944,213
Associates Corporation of North
America,
6.250% due 11/01/08 1,000,000 922,860
AT &T Corporation,
6.500% due 03/15/29 1,000,000 858,698
Boeing Company,
8.625% due 11/15/31 1,000,000 1,081,106
Burlington Northern Santa Fe
Corporation,
6.750% due 03/15/29 1,000,000 872,528
Capita Equipment Receivables Trust,
6.480% due 10/16/06 1,000,000 948,695
Columbia/HCA Healthcare
Corporation,
7.690% due 06/15/25 1,000,000 810,278
Comed Transitional Funding Trust,
5.740% due 12/25/10 1,000,000 902,285
Commonwealth Edison Company,
7.000% due 07/01/05 1,000,000 982,371
Conoco Inc.,
6.950% due 04/15/29 1,500,000 1,352,818
Crown Cork & Seal Inc.,
7.375% due 12/15/26 1,000,000 881,501
Enersis,
7.400% due 12/01/16 1,000,000 873,148
Federal Express Corporation Pass
Through,
7.500% due 01/15/18 1,928,688 1,909,449
Fifth Third Capital Trust I,
8.136% due 03/15/27 2,000,000 1,920,406
Ford Motor Company Delaware,
6.375% due 02/01/29 2,000,000 1,687,368
Fort James Corporation,
7.750% due 11/15/23 1,000,000 966,975
General Electric Capital
Corporation,
8.300% due 09/20/09 2,000,000 2,125,588
GTE North Inc.,
7.625% due 05/15/26 1,000,000 917,198
Hydro Quebec,
8.500% due 12/01/29 1,000,000 1,072,530
Laidlaw Inc.,
7.875% due 04/15/05 1,000,000 952,892
Legrand,
8.500% due 02/15/25 1,000,000 1,043,395
Lockheed Martin Corporation,
7.650% due 05/01/16 1,000,000 932,584
MBIA Inc.,
7.150% due 07/15/27 1,000,000 910,445
Merck & Company Inc.,
5.950% due 12/01/28 1,000,000 829,710
Merrill Lynch & Company Inc.,
6.450% due 01/24/00 500,000 497,940
Merrill Lynch & Company Inc.,
6.375% due 10/15/08 1,000,000 923,470
National City Bank Pennsylvania
Pittsburgh,
7.250% due 10/21/11 1,000,000 965,998
National Rural Utilities
Cooperative Finance,
5.700% due 01/15/10 2,000,000 1,762,262
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Peco Energy Transition Trust,
6.130% due 03/01/09 $ 2,000,000 $ 1,841,530
Seagram (J.E.) & Sons Inc.,
9.650% due 08/15/18 1,000,000 1,141,007
Standard Credit Card Master Trust
I,
7.250% due 04/07/08 2,000,000 2,002,650
Swiss Bank Corporation New York
Branch,
7.750% due 09/01/26 2,000,000 1,980,640
Texaco Capital Inc.,
9.750% due 03/15/20 1,000,000 1,194,029
Tyco Intl Group SA,
7.000% due 06/15/28 2,000,000 1,734,640
USA Waste Services Inc.,
7.000% due 10/01/04 1,000,000 902,364
Wal-Mart Stores Inc.,
6.875% due 08/10/09 2,000,000 1,950,276
Worldcom Inc., Georgia,
6.950% due 08/15/28 1,000,000 914,795
------------
45,407,648
------------
TOTAL CORPORATE BONDS AND NOTES
(IDENTIFIED COST $48,688,547) 45,407,648
- --------------------------------------------------------------------
COMMERCIAL PAPER -- 1.53%
- --------------------------------------------------------------------
Johnson Controls Inc.,
5.000% due 01/04/00 1,338,000 1,337,443
Textron Inc.,
6.450% due 01/14/00 272,000 271,366
------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $1,608,809) 1,608,809
- --------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.48%
- --------------------------------------------------------------------
Federal Home Loan Mortgage Pc
Guaranteed,
6.850% due 01/15/22 1,000,000 962,955
Federal National Mortgage
Association,
6.250% due 05/15/29 1,000,000 891,554
Federal National Mortgage
Association REMIC,
7.500% due 09/25/22 2,000,000 1,960,888
Tennessee Valley Authority,
6.000% due 03/15/13 1,000,000 901,025
------------
4,716,422
------------
TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $4,796,882) 4,716,422
- --------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 48.27%
- --------------------------------------------------------------------
U.S. Treasury Bond,
Zero Coupon due 11/15/15 12,500,000 4,241,363
U.S. Treasury Bond,
7.500% due 11/15/16 9,500,000 10,165,000
U.S. Treasury Bond,
7.875% due 02/15/21 9,000,000 10,060,317
U.S. Treasury Bond,
6.750% due 08/15/26 9,500,000 9,544,536
U.S. Treasury Bond,
6.625% due 02/15/27 13,500,000 13,373,437
</TABLE>
See notes to financial statements.
F-14
<PAGE> 75
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Bond,
3.625% due 04/15/28 $ 1,000,000 $ 894,063
U.S. Treasury Bond,
5.500% due 08/15/28 3,000,000 2,561,250
------------
50,839,966
------------
TOTAL U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $57,438,542) 50,839,966
- --------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS -- 0.91%
- --------------------------------------------------------------------
Province of British Columbia,
Canada,
7.250% due 09/01/36 1,000,000 958,580
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $992,897) 958,580
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $113,525,677) $103,531,425
OTHER ASSETS LESS LIABILITIES -- 1.70% 1,785,705
- --------------------------------------------------------------------
NET ASSETS -- 100% $105,317,130
====================================================================
</TABLE>
See notes to financial statements.
F-15
<PAGE> 76
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
The fourth quarter of 1999 was a story of three markets: of bonds in the
midst of a punishing bear market -- one of the worst on record, of "old economy"
industrial and consumer stocks that at best treaded water, and of tech stocks,
which exploded to the upside. Economic growth also ramped up, probably to at
least a 5% annual rate. In response to continued tight labor markets, the
Federal Reserve hiked interest rates in November. It was the third tightening
this year, and almost certainly not the last in the current cycle. The benchmark
S&P 500 Index was up 15.05% for the quarter, while the Russell 2000 Index of
smaller stocks was up 18.44%. The benchmark Lehman Brothers Government/Corporate
bond Index fell by 0.41%.
As we enter the new year the overwhelming question is How far does the Fed
have to tighten in order to cool off the economy? They have made it clear that
they will tighten until growth slows. If one more hike in February is
sufficient, we think the markets can move through 2000 at a comfortable cruising
speed; if it takes significantly more, then the potential for real turbulence
greatly increases.
For the quarter ended December 31,1999, the Portfolio earned a total return
of 17.47%. For the one year period ended December 31, 1999, the Portfolio earned
a total return of 30.53% and for the five and ten year periods, the Portfolio
earned an average annual return of 23.87% and 15.08% respectively. These returns
take into account charges imposed by the Portfolio. Additional charges are
imposed by the variable Accounts.
As of December 31, 1999, the Diversified Portfolio's net assets were
invested 84% in common stocks, 15% in Treasuries, and 1% in other/cash
equivalents.
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
MONY SERIES DIVERSIFIED S&P 500 INDEX
----------------------- -------------
<S> <C> <C>
12/31/89 $ 10000.00 $ 10000.00
12/31/90 $ 10244.20 $ 9689.50
12/31/91 $ 12336.10 $ 12641.70
12/31/92 $ 12460.50 $ 13604.70
12/31/93 $ 13823.50 $ 14976.00
12/31/94 $ 13965.60 $ 15173.80
12/31/95 $ 17640.40 $ 20876.60
12/31/96 $ 20187.70 $ 25668.90
12/31/97 $ 25228.20 $ 34232.80
12/31/98 $ 31220.60 $ 44012.30
12/31/99 $ 40730.60 $ 53269.30
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
- ------ ------- --------
<S> <C> <C>
30.53% 23.87% 15.08%
- --------------------------------------------------------------------------------
</TABLE>
MONY Series Fund performance numbers assume dividend reinvestment and
include all fees. Past performance is no guarantee of future results. The
investment returns and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
* The S&P 500 is an unmanaged index that includes the common stocks of 500
companies that tend to be leaders in important industries within the U.S.
economy. It assumes the reinvestment of dividends and distributions and does not
include any management fees or expenses. One cannot invest in an index.
F-16
<PAGE> 77
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 84.49%
- --------------------------------------------------------------------
AUTOMOTIVE -- 0.75%
Ford Motor Company 500 $ 26,719
----------
BANKING -- 2.90%
Bank of America Corporation 400 20,075
Bank of New York Company Inc. 700 28,000
Chase Manhattan Corporation 400 31,075
FleetBoston Financial Corporation 700 24,369
----------
103,519
----------
BROADCASTING -- 4.18%
CBS Corporation (a) 700 44,756
Cumulus Media Inc. (Class A) (a) 700 35,525
Infinity Broadcasting Corporation
(Class A) (a) 700 25,331
Time Warner Inc. 600 43,463
----------
149,075
----------
CABLE -- 3.25%
Cablevision Systems Corporation
(Class A) (a) 600 45,300
Comcast Corporation (a) 1,400 70,787
----------
116,087
----------
CHEMICALS -- 2.05%
Dow Chemical Company 300 40,087
Du Pont (E.I.) de Nemours & Company 500 32,938
----------
73,025
----------
COMPUTER HARDWARE -- 7.73%
Cisco Systems Inc. (a) 600 64,275
Dell Computer Corporation (a) 600 30,600
EMC Corporation (a) 600 65,550
Hewlett-Packard Company 200 22,788
Intel Corporation 600 49,387
International Business Machines
Corporation 400 43,200
----------
275,800
----------
COMPUTER SERVICES -- 3.44%
America Online Inc. (a) 600 45,263
Sun Microsystems Inc. (a) 1,000 77,437
----------
122,700
----------
COMPUTER SOFTWARE -- 4.48%
Microsoft Corporation (a) 600 70,050
Oracle Corporation (a) 800 89,650
----------
159,700
----------
CRUDE & PETROLEUM -- 3.97%
BP Amoco (ADR) 500 29,656
Chevron Corporation 300 25,988
Exxon Mobil Corporation 800 64,450
Texaco Inc. 400 21,725
----------
141,819
----------
ELECTRICAL EQUIPMENT -- 4.27%
Emerson Electric Company 500 28,687
General Electric Company 800 123,800
----------
152,487
----------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 0.73%
Atlantic Richfield Company 300 $ 25,950
----------
HOTELS & RESTAURANTS -- 1.02%
McDonald's Corporation 900 36,281
----------
MACHINERY -- 1.78%
Applied Materials Inc. (a) 500 63,344
----------
MEDICAL SERVICES -- 1.89%
Biogen Inc. (a) 800 67,600
----------
MISC. FINANCIAL SERVICES -- 2.95%
American Express Company 300 49,875
Citigroup Inc. 1,000 55,562
----------
105,437
----------
MULTI-LINE INSURANCE -- 1.51%
American International Group Inc. 500 54,063
----------
OIL SERVICES -- 5.55%
Baker Hughes Inc. 700 14,744
BJ Services Company (a) 800 33,450
Diamond Offshore Drilling Inc. 800 24,450
Halliburton Company 500 20,125
Kerr-McGee Corporation 500 31,000
Schlumberger Ltd. 400 22,500
Tidewater Inc. 700 25,200
Transocean Sedco Forex Inc. 77 2,609
Weatherford International Inc. (a) 600 23,962
----------
198,040
----------
PAPER & FOREST PRODUCTS -- 2.63%
Bowater Inc. 500 27,156
International Paper Company 600 33,863
Temple-Inland Inc. 500 32,969
----------
93,988
----------
PHARMACEUTICALS -- 7.81%
American Home Products Corporation 800 31,550
Bristol-Myers Squibb Company 500 32,094
Eli Lilly & Company 500 33,250
Johnson & Johnson 400 37,250
Merck & Company Inc. 300 20,119
Pfizer Inc. 500 16,219
Pharmacia & Upjohn Inc. 300 13,500
Schering-Plough Corporation 700 29,531
Smithkline Beecham (ADR) 500 32,218
Warner-Lambert Company 400 32,775
----------
278,506
----------
RETAIL -- 2.80%
Home Depot Inc. 750 51,422
Wal-Mart Stores Inc. 700 48,387
----------
99,809
----------
TECHNOLOGY -- 1.36%
Texas Instruments Inc. 500 48,438
----------
</TABLE>
See notes to financial statements.
F-17
<PAGE> 78
MONY SERIES FUND, INC.
DIVERSIFIED PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 12.10%
AT&T Corporation 1,000 $ 50,750
General Instrument Corporation (a) 1,000 85,000
Global Crossing Ltd. (a) 1,000 50,000
Lucent Technologies Inc. 600 44,887
MCI WorldCom Inc. (a) 750 39,797
Qwest Communications International
Inc. (a) 1,300 55,900
Sprint Corporation 800 53,850
Tellabs Inc. (a) 800 51,350
----------
431,534
----------
WIRELESS COMMUNICATIONS -- 5.34%
Motorola Inc. 300 44,175
Nokia Corporation (ADR) 500 95,000
Sprint PCS (a) 500 51,250
----------
190,425
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,581,139) $3,014,346
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY NOTES -- 14.39%
- --------------------------------------------------------------------
United States Treasury Notes
7.50% due 05/15/02 $500,000 $ 513,438
- --------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $508,122) 513,438
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $2,089,261) $3,527,784
OTHER ASSETS LESS LIABILITIES -- 1.12% 39,969
- --------------------------------------------------------------------
NET ASSETS -- 100% $3,567,753
====================================================================
</TABLE>
(a) Non-income producing security.
ADR = American Depository Receipts.
See notes to financial statements.
F-18
<PAGE> 79
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
A rapidly growing economy and its threat of higher inflation pushed U.S.
Treasury and Agency securities up in yield in the fourth quarter. The resulting
lower prices gave the bond market one of its worst performances in recent years.
The Federal Reserve Bank raised short-term rates three times over the course of
1999, and as the new decade arrived, most market participants were expecting
further hikes in the months ahead. Benchmark five-year U.S. treasury rates ended
the year at 6.34%, up significantly from 5.76% in the third quarter, and a huge
jump from 4.54% at the start of the year. The yield curve remained mostly
unchanged in shape, and is still relatively flat by historical standards, with
little incremental return for extending out in maturity. U.S. Government Agency
did somewhat better, narrowing their yield risk premiums above treasuries.
The economy accelerated at year-end, showing surprising resilience to the
rebound in oil prices, tight labor markets, and the effects of higher interest
rates. The Fed has been making it increasingly clear that they are willing to
continue tightening until solid evidence appears of slower growth. We remain
very cautious on bonds until that day arrives. When it does, we think bonds will
begin a substantial rally.
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
instrumentality's. The Portfolio is expected to have a dollar weighted average
life between one and five years under most circumstances. The Portfolio had an
average maturity of 3.7 years at December 31, 1999.
For the quarter ended December 31, 1999, the Portfolio earned a total
return of .1%. For the one and five year periods ended December 31, 1999, the
Portfolio earned a total return of 0.66% and 5.78% respectively. Since inception
in May, 1991, the Portfolio earned an average annual return of 5.98% for the
period ended December 31, 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.
F-19
<PAGE> 80
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
[LINE GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS INTERMEDIATE GOV
MONY GOVERNMENT SECURITIES BOND INDEX
-------------------------- --------------------------------
<S> <C> <C>
5/1/91 $ 10000.00 $ 10000.00
12/31/91 $ 10973.90 $ 11051.00
12/31/92 $ 11742.70 $ 11816.70
12/31/93 $ 12698.20 $ 12782.10
12/31/94 $ 12493.30 $ 12559.00
12/31/95 $ 13853.80 $ 14369.00
12/31/96 $ 14355.80 $ 14952.50
12/31/97 $ 15385.90 $ 16107.20
12/31/98 $ 16440.50 $ 17474.10
12/31/99 $ 16549.00 $ 17559.10
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS SINCE MAY 1, 1991
- ------ ------- -----------------
<S> <C> <C>
0.66% 5.78% 5.98%
- --------------------------------------------------------------------------------
</TABLE>
MONY Series Fund performance numbers assume dividend reinvestment and
include all fees. Past performance is no guarantee of future results. The
investment returns and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
The Lehman Brothers Intermediate Government Bond Index is an unmanaged
index of all publicly held US Treasury, government agency, quasi-federal
corporate, and corporate debt guaranteed by the US government with maturities of
one to 9.99 years. It assumes the reinvestment of dividends and capital gains
and excludes management fees and expenses. One cannot invest in an index.
F-20
<PAGE> 81
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 64.82%
- --------------------------------------------------------------------
Attransco Inc.,
6.120% due 04/01/08 $ 1,798,084 $ 1,724,812
Federal Home Loan Banks,
4.875% due 01/22/02 1,000,000 967,955
Federal Home Loan Banks,
5.125% due 02/26/02 1,000,000 971,320
Federal Home Loan Banks,
5.500% due 01/21/03 2,000,000 1,936,042
Federal National Mortgage
Association,
5.750% due 04/15/03 2,000,000 1,943,234
Federal National Mortgage
Association,
5.875% due 04/23/04 1,000,000 961,394
Federal National Mortgage
Association Discount Notes,
5.750% due 03/09/00 610,000 603,375
Federal National Mortgage
Association REMIC,
7.000% due 01/25/03 285,000 283,289
Federal National Mortgage
Association REMIC,
6.500% due 10/25/03 1,300,000 1,276,905
Federal National Mortgage
Association REMIC,
5.750% due 08/25/18 290,419 288,298
Freddie Mac,
6.000% due 07/20/01 5,000,000 4,956,440
Freddie Mac,
6.300% due 06/01/04 3,000,000 2,911,041
Freddie Mac,
6.500% due 11/15/21 1,500,000 1,451,550
Freddie Mac,
6.500% due 03/15/26 1,000,000 936,245
Freddie Mac Discount Notes,
Zero Coupon due 01/10/00 100,000 99,861
Freddie Mac Discount Notes,
5.680% due 01/18/00 147,000 146,605
Freddie Mac Discount Notes,
Zero Coupon due 02/04/00 260,000 258,651
Freddie Mac Discount Notes,
5.750% due 02/24/00 765,000 758,402
Freddie Mac Discount Notes,
5.750% due 03/21/00 134,000 132,288
Government National Mortgage
Association,
7.500% due 05/15/24 407,780 405,590
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage
Association,
7.500% due 10/15/24 $ 149,793 $ 148,989
Government National Mortgage
Association,
7.000% due 09/20/28 1,630,103 1,571,925
Overseas Private Investor
Corporation,
7.050% due 11/15/13 3,000,000 2,950,860
Private Export Funding Corporation,
7.010% due 04/30/04 2,000,000 2,011,820
Private Export Funding Corporation,
5.250% due 05/15/05 2,500,000 2,318,462
Tennessee Valley Authority,
6.375% due 06/15/05 500,000 482,486
Tennessee Valley Authority,
5.375% due 11/13/08 2,000,000 1,785,390
Tennessee Valley Authority,
6.000% due 03/15/13 1,000,000 901,025
U.S. Department of Housing & Urban
Development,
6.230% due 08/01/02 2,000,000 1,982,246
-----------
37,166,500
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $38,324,352) 37,166,500
- --------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 32.97%
- --------------------------------------------------------------------
U.S. Treasury Note,
6.250% due 01/31/02 10,000,000 10,003,130
U.S. Treasury Note,
5.625% due 12/31/02 1,000,000 981,250
U.S. Treasury Note,
5.500% due 01/31/03 3,000,000 2,929,689
U.S. Treasury Note,
6.500% due 10/15/06 5,000,000 4,987,500
-----------
18,901,569
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $19,562,483) 18,901,569
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $57,886,835) $56,068,069
OTHER ASSETS LESS LIABILITIES -- 2.21% 1,268,955
- --------------------------------------------------------------------
NET ASSETS -- 100% $57,337,024
====================================================================
</TABLE>
See notes to financial statements.
F-21
<PAGE> 82
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
And the beat goes on. The U.S.'s economic performance in the fourth quarter
continued the strong pace re-established in the third quarter likely producing
the first back-to-back 5%+ real GDP growth quarters since the second half of
1984. Consumer spending, with retail sales growth for 1999 of 8.9% (a 15-year
high), demonstrated particular strength in the second half of 1999 as evidenced
by vehicle sales setting a record in 1999. Healthy real wage growth and the
well-publicized torrid performance of the U.S. equity markets (led by the
NASDAQ's 51.4% gain from its October 19 quarterly low through year end) leant
support to buoyant consumer spending. The labor markets remained very tight with
unemployment remaining at 4.1% at the end of the year. On the fiscal front, the
federal government is generating substantial surpluses beyond expectations.
Thus, the economy carried significant momentum into the New Year. All this is
taking place in an environment with little in the way of inflationary signs. In
fact, despite the above-trend 4% real GDP growth likely turned in by the U.S.
economy in 1999, core inflation in 1999 probably fell modestly below that of
1998 (1.9% vs. 1998's 2.5%). Clearly, commodity prices have picked up measurably
in 1999 as oil prices doubled for instance. Nevertheless, there has been minimal
translation of higher raw materials and input price increases into
consumer-level prices. While the producer-level PPI grew 3.0% in 1999, healthy
labor productivity of 3% reduced producers' need to increase prices. The Fed
reacted to the persistent strength in the U.S. economy by raising the federal
funds target rate 0.25% at its November meeting. The Fed seems poised to again
raise interest rates at the February 1-2 meeting based on continued above-trend
economic growth. Such action was not taken by the Fed at its December meeting
due to the Fed's unwillingness to create any instability in the financial
markets in front of the changeover to the Year 2000, which has proven to be a
non-event relative to some of the dire predictions made. In its December
post-meeting commentary, the Fed was very clear in describing its adoption of a
neutral bias on prospective interest rate changes as applicable only to the
period before the upcoming February meeting to ensure a smooth transition to
2000. The Fed also expressed clear concern over the economy's strength and
potential for supply/demand imbalances developing leading to inflationary
pressure. Thus, the Fed telegraphed a rate hike at the February meeting, which
is priced into the market. In addition, the market is also anticipating another
tightening by the Fed (0.25%?) in the next three months. To capitalize on the
upward move in money market interest rates and significant premium paid by
issuers to extend maturities beyond year-end, in the fourth quarter the Money
Market Portfolio locked in attractive yields in issues extending into 2000.
While money market rates in the first half of January have dropped precipitously
relative to those seen in December, attractive opportunities to extend into
longer maturing/higher yielding investments may soon become available. This may
come to pass as the ability of the economy to stave off inflationary pressures
may surprise even the Fed.
The Treasury yield curve shifted up markedly in the fourth quarter.
Interest rates on the long bond increased 43 basis points (1/100 of a percentage
point) during the quarter from a yield of 6.05% at 9/30/99 to 6.48% at year-end.
Yields on the short end rose even more greatly, as the three-month T-bill yield
moved up 47 basis points from 4.85% at September 30, 1999 to 5.31% at December
31, 1999 (0.01% discrepancy due to rounding).
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. As noted above, to maintain sufficient liquidity and
take advantage of opportunities to garner a substantial yield pickup for
securities maturing in the early part of 2000, the average maturity of the
Portfolio was shortened from 66.1 days at September 30, 1999 to approximately
45.3 days at year-end.
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 effective yields of the Portfolio were 5.87% and 5.98%, respectively,
as of December 31, 1999, after charges imposed by the Portfolio. Of course, past
performance does not guarantee future investment results.
Investments made in the Money Market Portfolio are not insured nor
guaranteed by the U.S. government. There is no assurance that the Portfolio will
maintain a steady net asset value.
F-22
<PAGE> 83
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 92.60%
- --------------------------------------------------------------------
American Home Products Corporation,
6.020% due 01/21/00 $14,700,000 $ 14,650,837
Aristar Inc.,
6.050% due 01/28/00 3,000,000 2,986,387
Aristar Inc.,
6.150% due 01/31/00 2,000,000 1,989,750
Aristar Inc.,
6.100% due 02/04/00 3,000,000 2,982,717
Associates Corporation of North
America,
6.000% due 01/24/00 3,400,000 3,386,967
Bank of New York,
5.760% due 02/24/00 10,000,000 9,913,600
Bankamerica Corporation,
5.700% due 02/17/00 6,800,000 6,749,397
Citicorp,
5.950% due 01/27/00 9,500,000 9,459,176
Colonial Pipeline Co.,
6.030% due 03/20/00 1,585,000 1,564,026
Conagra Inc.,
6.670% due 01/05/00 3,000,000 2,997,777
Dominion Resources Inc.,
6.700% due 01/20/00 3,000,000 2,989,392
Edison Asset Securitization,
5.930% due 01/31/00 2,175,000 2,164,252
Edison Asset Securitization,
5.850% due 03/10/00 9,817,000 9,706,927
Enterprise Funding Corporation,
6.450% due 01/12/00 1,350,000 1,347,339
Enterprise Funding Corporation,
6.220% due 01/21/00 9,000,000 8,968,900
Finova Capital Corporation,
6.000% due 01/28/00 1,650,000 1,642,575
Ford Motor Credit Company,
6.450% due 01/10/00 5,200,000 5,191,615
Ford Motor Credit Company,
5.950% due 01/11/00 4,500,000 4,492,563
General Electric Capital
Corporation Discount Note,
6.020% due 01/28/00 11,050,000 11,000,109
General Motors Corporation,
5.750% due 02/14/00 274,000 272,074
General Motors Corporation,
5.750% due 02/17/00 160,000 158,799
General Motors Corporation,
5.770% due 02/18/00 7,000,000 6,946,147
General Motors Corporation,
5.900% due 03/22/00 7,000,000 6,907,075
Golden Funding Corporation,
5.980% due 04/17/00 6,775,000 6,654,582
Golden Gate Funding,
5.820% due 03/03/00 8,000,000 7,919,813
Goldman Sachs Group L.P.,
6.258% due 04/01/08 5,000,000 5,000,000
GTE Corporation,
6.020% due 01/10/00 9,050,000 9,036,380
GTE Corporation,
6.310% due 02/01/00 5,150,000 5,122,017
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Heller Financial Inc.,
5.800% due 02/24/00 $10,000,000 $ 9,913,000
Heller Financial Inc.,
5.800% due 03/14/00 3,000,000 2,964,717
Household Finance Corporation
Limited,
5.730% due 02/03/00 10,000,000 9,947,475
Household International Inc.,
6.050% due 02/08/00 5,000,000 4,968,069
Houston Industries Finance L.P.,
6.470% due 01/12/00 3,000,000 2,994,069
J. P. Morgan & Company Inc.,
5.700% due 03/27/00 1,200,000 1,183,660
Johnson Controls Inc.,
5.000% due 01/04/00 3,500,000 3,498,542
Lehman Brothers Inc.,
6.150% due 03/15/00 3,575,000 3,577,291
Lehman Syndicated Loan Funding,
6.613% due 03/15/00 7,000,000 7,000,000
Merrill Lynch & Company Inc.,
5.950% due 01/18/00 1,000,000 997,190
Merrill Lynch & Company Inc.,
6.550% due 01/20/00 2,547,000 2,538,195
Montauk Funding Corporation,
5.950% due 01/26/00 13,300,000 13,244,755
Paccar Financial Corporation,
6.200% due 01/11/00 7,200,000 7,187,600
Province of Quebec,
5.850% due 06/01/00 600,000 585,180
Republic of Argentina,
5.716% due 10/16/00 4,400,000 4,196,820
Sears Roebuck Acceptance
Corporation,
6.050% due 01/18/00 4,300,000 4,287,715
Sears Roebuck Acceptance
Corporation,
6.120% due 02/25/00 10,000,000 9,906,500
Sony Capital Corporation,
5.870% due 01/25/00 6,120,000 6,096,050
Textron Financial Corporation,
6.900% due 01/14/00 342,000 341,148
Trident Capital Finance Inc.,
6.000% due 02/11/00 15,000,000 14,897,500
TRW Inc.,
6.480% due 01/10/00 1,875,000 1,871,963
Union Bancal Commercial Funding,
5.250% due 05/08/00 5,000,000 5,000,000
Union Bancal Commercial Funding,
5.990% due 09/15/00 4,000,000 4,000,000
Walt Disney Company,
5.530% due 06/16/00 10,000,000 9,743,469
Wells Fargo & Company,
5.870% due 03/03/00 13,000,000 12,868,577
Windmill Funding Corporation,
6.080% due 01/04/00 9,500,000 9,495,187
Windmill Funding Corporation,
6.280% due 01/12/00 4,600,000 4,591,173
Windmill Funding Corporation,
5.870% due 02/25/00 1,550,000 1,536,099
------------
TOTAL COMMERCIAL PAPER
(IDENTIFIED COST $311,633,137) 311,633,137
- --------------------------------------------------------------------
</TABLE>
See notes to financial statements.
F-23
<PAGE> 84
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.38%
- --------------------------------------------------------------------
Federal Home Loan Bank,
5.000% due 02/10/00 $ 8,000,000 $ 8,000,000
- --------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $8,000,000) 8,000,000
- --------------------------------------------------------------------
VARIABLE RATE SECURITIES -- 3.43%
- --------------------------------------------------------------------
Capital One Funding Corporation,
6.400% due 04/01/11 (v) 3,200,000 3,200,000
Capital One Funding Corporation,
6.400% due 03/01/17 (v) 2,345,000 2,345,000
Goldman Sachs Group L.P.,
5.400% due 02/25/00 (v) 6,000,000 6,000,000
------------
TOTAL VARIABLE RATE SECURITIES
(IDENTIFIED COST $11,545,000) 11,545,000
- --------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $331,178,137) $331,178,137
OTHER ASSETS LESS LIABILITIES -- 1.59% 5,354,328
- --------------------------------------------------------------------
NET ASSETS -- 100% $336,532,465
====================================================================
</TABLE>
(v) Variable interest rate security; interest rate is as of December 31, 1999.
See notes to financial statements.
F-24
<PAGE> 85
(This page intentionally left blank)
F-25
<PAGE> 86
MONY SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments at value.............................. $3,313,384 $18,450,291 $54,236,709
Receivable for fund shares sold................... -- 640 107,149
Receivable for investments sold................... -- -- --
Dividends and interest receivable................. 1,805 27,241 804,336
Cash and other assets............................. 57,217 810 500,220
---------- ----------- -----------
Total assets............................ 3,372,406 18,478,982 55,648,414
---------- ----------- -----------
LIABILITIES:
Payable for fund shares redeemed.................. 31 10 12,632
Investment advisory fees payable.................. 1,357 7,789 24,174
Administration fees payable....................... 828 1,161 1,718
Accrued expenses and other liabilities............ 8,345 10,264 14,720
---------- ----------- -----------
Total liabilities....................... 10,561 19,224 53,244
---------- ----------- -----------
NET ASSETS......................... $3,361,845 $18,459,758 $55,595,170
========== =========== ===========
NET ASSETS:
Paid-in capital................................... $1,120,987 $10,431,460 $54,187,397
Undistributed (accumulated) net investment income
(loss).......................................... -- 297,278 3,263,672
Undistributed (accumulated) net realized gain
(loss) on investments........................... 638,015 2,461,125 (209,290)
Unrealized appreciation (depreciation) on
investments..................................... 1,602,843 5,269,895 (1,646,609)
---------- ----------- -----------
NET ASSETS......................... $3,361,845 $18,459,758 $55,595,170
========== =========== ===========
Fund shares outstanding........................... 69,103 788,254 5,138,632
---------- ----------- -----------
Net asset value per share......................... $48.65 $23.42 $10.82
========== =========== ===========
INVESTMENTS AT COST............................... $1,710,541 $13,180,396 $55,883,318
</TABLE>
See notes to financial statements.
F-26
<PAGE> 87
<TABLE>
<CAPTION>
LONG TERM GOVERNMENT MONEY
BOND DIVERSIFIED SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
$103,531,425 $3,527,784 $56,068,069 $331,178,137
118,948 -- 218,858 3,360,661
-- -- -- 100,000
1,961,024 6,564 887,389 759,126
4,985 83,773 245,893 2,773,834
------------ ---------- ----------- ------------
105,616,382 3,618,121 57,420,209 338,171,758
------------ ---------- ----------- ------------
171,029 39,739 48,713 1,507,449
45,875 1,464 24,305 109,664
2,459 862 1,430 4,893
79,889 8,303 8,737 17,287
------------ ---------- ----------- ------------
299,252 50,368 83,185 1,639,293
------------ ---------- ----------- ------------
$105,317,130 $3,567,753 $57,337,024 $336,532,465
============ ========== =========== ============
$109,089,325 $1,546,905 $56,188,757 $336,532,465
6,952,073 13,687 2,966,251 --
(730,016) 568,638 782 --
(9,994,252) 1,438,523 (1,818,766) --
------------ ---------- ----------- ------------
$105,317,130 $3,567,753 $57,337,024 $336,532,465
============ ========== =========== ============
8,547,297 155,560 5,254,259 336,532,465
------------ ---------- ----------- ------------
$12.32 $22.93 $10.91 $1.00
============ ========== =========== ============
$113,525,677 $2,089,261 $57,886,835 $331,178,137
</TABLE>
See notes to financial statements.
F-27
<PAGE> 88
MONY SERIES FUND, INC
STATEMENTS OF OPERATIONS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM BOND
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................... $ 3,934 $ 13,864 $ 3,602,016(1)
Dividends................................... 27,571(1) 428,398 --
---------- ----------- -----------
Total investment income................ 31,505 442,262 3,602,016
---------- ----------- -----------
EXPENSES:
Investment advisory fees.................... 16,417 98,594 297,308
Custodian fees.............................. 7,905 11,082 5,470
Accounting fees............................. 23,274 24,591 27,929
Administration fees......................... 828 1,161 1,718
Directors' fees and expenses................ 232 1,397 4,484
Audit and legal fees........................ -- 782 3,420
---------- ----------- -----------
Total expenses......................... 48,656 137,607 340,329
---------- ----------- -----------
Less: Expenses reduced by a custodian fee
arrangement............................ (1,259) (1,145) (1,985)
---------- ----------- -----------
Total expenses, net of expense
reduction.............................. 47,397 136,462 338,344
---------- ----------- -----------
NET INVESTMENT INCOME (LOSS)......... (15,892) 305,800 3,263,672
---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on security
transactions.............................. 658,501 2,439,376 (43,997)
Net change in unrealized gain (loss) on
investments............................... 408,644 (1,208,862) (3,099,186)
---------- ----------- -----------
Net realized and unrealized gain (loss)
on investments....................... 1,067,145 1,230,514 (3,143,183)
---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............ $1,051,253 $ 1,536,314 $ 120,489
========== =========== ===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
(1) Net of foreign taxes withheld of $46 for Equity Growth, $5,336 for
Intermediate Term Bond, and $4,808 for Long Term Bond.
F-28
<PAGE> 89
<TABLE>
<CAPTION>
LONG TERM GOVERNMENT MONEY
BOND DIVERSIFIED SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
$ 7,627,205(1) $ 38,843 $ 3,300,187 $16,135,618
-- 25,397 -- --
------------ -------- ----------- -----------
7,627,205 64,240 3,300,187 16,135,618
------------ -------- ----------- -----------
616,044 17,505 293,589 1,213,963
6,931 7,701 4,806 15,864
33,351 23,266 27,399 51,287
2,459 862 1,430 4,893
9,766 245 4,044 27,043
8,153 2,147 6,099 25,407
------------ -------- ----------- -----------
676,704 51,726 337,367 1,338,457
------------ -------- ----------- -----------
(1,572) (1,173) (3,431) (5,849)
------------ -------- ----------- -----------
675,132 50,553 333,936 1,332,608
------------ -------- ----------- -----------
6,952,073 13,687 2,966,251 14,803,010
------------ -------- ----------- -----------
(699,531) 573,398 782 --
(16,322,516) 336,292 (2,586,738) --
------------ -------- ----------- -----------
(17,022,047) 909,690 (2,585,956) 0
------------ -------- ----------- -----------
$(10,069,974) $923,377 $ 380,295 $14,803,010
============ ======== =========== ===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
F-29
<PAGE> 90
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
EQUITY GROWTH PORTFOLIO
-------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ (15,892) $ (13,658)
Net realized gain (loss) on investments................... 658,501 278,489
Net change in unrealized gain (loss) on investments....... 408,644 392,152
----------- ----------
Increase (decrease) in net assets resulting from
operations............................................. 1,051,253 656,983
----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... -- (119,498)
Net realized gains on investments......................... (268,388) (342,882)
----------- ----------
Total distributions to shareholders.................. (268,388) (462,380)
----------- ----------
FROM CAPITAL SHARE TRANSACTIONS:
Shares sold............................................... 784,022 95,975
Reinvestment of distributions............................. 268,388 462,380
Shares redeemed........................................... (1,582,781) (442,713)
----------- ----------
Total increase (decrease) in net assets resulting
from capital share transactions................... (530,371) 115,642
----------- ----------
Total increase (decrease) in net assets.............. 252,494 310,245
NET ASSETS:
Beginning of period....................................... 3,109,351 2,799,106
----------- ----------
End of period............................................. $ 3,361,845 $3,109,351
=========== ==========
SHARES ISSUES AND REDEEMED:
Issued.................................................... 18,414 2,784
Issued in reinvestment of distributions................... 6,585 13,656
Redeemed.................................................. (37,287) (12,625)
----------- ----------
Net increase (decrease)........................... (12,288) 3,815
=========== ==========
</TABLE>
See notes to financial statements.
F-30
<PAGE> 91
<TABLE>
<CAPTION>
INTERMEDIATE TERM
EQUITY INCOME PORTFOLIO BOND PORTFOLIO LONG TERM BOND PORTFOLIO
--------------------------- --------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 305,800 $ 375,239 $ 3,263,672 $ 2,897,928 $ 6,952,073 $ 5,178,086
2,439,376 3,086,639 (43,997) 77,522 (699,531) 2,529,920
(1,208,862) (1,030,272) (3,099,186) 678,142 (16,322,516) 895,785
----------- ----------- ------------ ------------ ------------ ------------
1,536,314 2,431,606 120,489 3,653,592 (10,069,974) 8,603,791
----------- ----------- ------------ ------------ ------------ ------------
(365,229) (632,565) (2,897,928) (2,478,951) (5,178,086) (4,173,497)
(3,095,880) (2,642,564) -- -- (2,529,914) (314,904)
----------- ----------- ------------ ------------ ------------ ------------
(3,461,109) (3,275,129) (2,897,928) (2,478,951) (7,708,000) (4,488,401)
----------- ----------- ------------ ------------ ------------ ------------
517,508 796,187 22,066,468 27,469,322 59,904,018 72,363,250
3,461,109 3,275,129 2,897,928 2,478,951 7,708,000 4,488,401
(3,395,551) (4,147,192) (26,123,240) (15,808,455) (67,473,704) (33,363,015)
----------- ----------- ------------ ------------ ------------ ------------
583,066 (75,876) (1,158,844) 14,139,818 138,314 43,488,636
----------- ----------- ------------ ------------ ------------ ------------
(1,341,729) (919,399) (3,936,283) 15,314,459 (17,639,660) 47,604,026
19,801,487 20,720,886 59,531,453 44,216,994 122,956,790 75,352,764
----------- ----------- ------------ ------------ ------------ ------------
$18,459,758 $19,801,487 $ 55,595,170 $ 59,531,453 $105,317,130 $122,956,790
=========== =========== ============ ============ ============ ============
22,131 29,633 2,013,583 2,465,899 4,471,785 5,224,600
141,965 126,845 269,324 231,461 608,366 344,731
(138,809) (158,014) (2,398,901) (1,417,637) (5,207,500) (2,417,533)
----------- ----------- ------------ ------------ ------------ ------------
25,287 (1,536) (115,994) 1,279,723 (127,349) 3,151,798
=========== =========== ============ ============ ============ ============
</TABLE>
See notes to financial statements.
F-31
<PAGE> 92
MONY SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
DIVERSIFIED PORTFOLIO
-------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 13,687 $ 12,540
Net realized gain (loss) on investments................... 573,398 406,579
Net change in unrealized gain (loss) on investments....... 336,292 234,702
---------- ----------
Increase (decrease) in net assets resulting from
operations............................................. 923,377 653,821
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... (12,540) (233,109)
Net realized gains on investments......................... (411,314) (468,435)
---------- ----------
Total distributions to shareholders.................. (423,854) (701,544)
---------- ----------
FROM CAPITAL SHARE TRANSACTIONS:
Shares sold............................................... 330,574 200,875
Reinvestment of distributions............................. 423,854 701,544
Shares redeemed........................................... (965,818) (804,465)
---------- ----------
Total increase (decrease) in net assets resulting
from capital share transactions................... (211,390) 97,954
---------- ----------
Total increase (decrease) in net assets.............. 288,133 50,231
NET ASSETS:
Beginning of period....................................... 3,279,620 3,229,389
---------- ----------
End of period............................................. $3,567,753 $3,279,620
========== ==========
SHARES ISSUES AND REDEEMED:
Issued.................................................... 15,810 10,555
Issued in reinvestment of distributions................... 21,246 39,703
Redeemed.................................................. (46,180) (42,265)
---------- ----------
Net increase (decrease)........................... (9,124) 7,993
========== ==========
</TABLE>
See notes to financial statements.
F-32
<PAGE> 93
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES
PORTFOLIO MONEY MARKET PORTFOLIO
------------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------- ---------------
<S> <C> <C> <C> <C>
$ 2,966,251 $ 1,817,929 $ 14,803,010 $ 12,917,964
782 12,868 -- --
(2,586,738) 449,812 -- --
------------ ------------ ------------- ---------------
380,295 2,280,609 14,803,010 12,917,964
------------ ------------ ------------- ---------------
(1,817,929) (1,106,347) (14,803,010) (12,917,964)
(11,126) -- -- --
------------ ------------ ------------- ---------------
(1,829,055) (1,106,347) (14,803,010) (12,917,964)
------------ ------------ ------------- ---------------
35,392,288 41,828,223 605,338,269 1,317,395,361
1,829,055 1,106,347 14,803,010 12,917,964
(33,050,372) (14,559,912) (633,030,174) (1,139,178,202)
------------ ------------ ------------- ---------------
4,170,971 28,374,658 (12,888,895) 191,135,123
------------ ------------ ------------- ---------------
2,722,211 29,548,920 (12,888,895) 191,135,123
54,614,813 25,065,893 349,421,360 158,286,237
------------ ------------ ------------- ---------------
$ 57,337,024 $ 54,614,813 $ 336,532,465 $ 349,421,360
============ ============ ============= ===============
3,220,997 3,806,065 605,338,269 1,317,395,361
169,044 104,570 14,803,010 12,917,964
(3,025,293) (1,323,593) (633,030,174) (1,139,178,202)
------------ ------------ ------------- ---------------
364,748 2,587,042 (12,888,895) 191,135,123
============ ============ ============= ===============
</TABLE>
See notes to financial statements.
F-33
<PAGE> 94
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION AND BUSINESS
The MONY Series Fund, Inc. (the "Fund"), a Maryland corporation organized
on December 14, 1984, is composed of seven separate investment funds or
portfolios as follows: Equity Growth, Equity Income, Intermediate Term Bond,
Long Term Bond, Diversified, Government Securities, and Money Market. 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 expenses and also its
proportionate share of the general expenses of the Fund. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company.
The Fund 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 Fund in preparation of its
financial statements.
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, which approximates market. 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 held by 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 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.
All other securities, when held by the Fund, including any restricted
securities, are valued at their fair value as determined in good faith by the
Board of Directors. As of December 31, 1999, there were no such securities.
B. Federal Income Taxes:
No provision for Federal income or excise taxes is required because the
Fund intends to continue to qualify as a regulated investment company and
distribute all of its taxable income to shareholders.
C. Security Transactions and Investment 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 for accounting and Federal income tax purposes. Dividend income received
and distributions paid to shareholders are recognized on the ex-dividend date,
and interest income is recognized on the accrual basis. Premiums and discounts
are amortized daily for both financial and tax purposes.
F-34
<PAGE> 95
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Expenses:
Each portfolio bears expenses incurred specifically on its behalf, such as
advisory and custodian fees, as well as a portion of the common expenses of the
Fund which are generally allocated based on average net assets.
E. Dividends and Distributions:
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.
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 accounting principles generally accepted in
the United States.
F. Use of Estimates in Preparation of Financial Statements:
Preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that may affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
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. The investment advisory fee is payable monthly and is computed as a
percentage of each portfolio's average daily net assets at an annual rate of
0.50% 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 0.40% of the first
$400,000,000 of the average daily net assets; 0.35% of the next $400,000,000 of
the average daily net assets of each of the Fund's portfolios; and 0.30% of the
average daily net assets of each of the Fund's portfolios in excess of
$800,000,000.
MONY also provided transfer agent services to the fund until November 30,
1999, when transfer agency services were contracted with State Street Bank and
Trust Company. The fees associated with transfer agent services are included in
accounting fees in the accompanying statements of operations. Effective December
1, 1999, the fund contracted with Enterprise Capital Management ("ECM"), a
wholly-owned subsidiary of MONY, to provide administrative services to the fund.
ECM receives an administrative fee equal to 0.03% of the fund's average daily
net assets.
F-35
<PAGE> 96
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
3. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS (CONTINUED)
Aggregate directors fees incurred for non-affiliated Directors' of the Fund
for the year ended December 31, 1999 amounted to $47,211.
4. 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 or portfolios as follows: Equity Growth (150 million shares);
Equity Income (150 million shares); Intermediate Term Bond (150 million shares);
Long Term Bond (150 million shares); Diversified (150 million shares);
Government Securities (150 million shares); and Money Market (750 million
shares). The remaining shares may be issued to any new or existing portfolio
upon approval of the Board of Directors.
5. PURCHASES AND SALES OF INVESTMENTS
For the year ended December 31, 1999 purchases and sales of investments,
other than short-term investments, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C> <C>
Equity Growth.......................... Common Stock $ 986,223 $ 1,755,167
Equity Income.......................... Common Stock 5,218,806 7,868,228
Intermediate Term Bond................. U.S. Government Obligations 17,291,074 18,489,875
Corporate Bonds 7,003,198 4,734,450
Long Term Bond......................... U.S. Government Obligations 34,415,428 33,462,176
Corporate Bonds 23,660,181 16,277,785
Diversified............................ Common Stock 905,870 1,426,029
Government Securities.................. U.S. Government 27,501,171 3,895,675
</TABLE>
6. TAX BASIS UNREALIZED GAIN (LOSS) OF INVESTMENTS AND DISTRIBUTIONS
At December 31, 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>
Equity Growth.......................... $ 1,714,519 $1,609,453 $ (10,588) $ 1,598,865
Equity Income.......................... 13,170,320 5,681,439 (401,468) 5,279,971
Intermediate Term Bond................. 55,923,671 9,604 (1,696,566) (1,686,962)
Long Term Bond......................... 113,763,013 313,880 (10,545,468) (10,231,588)
Diversified............................ 2,093,997 1,447,384 (13,597) 1,433,787
Government Securities.................. 57,886,835 30,184 (1,848,950) (1,818,766)
</TABLE>
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from accounting principles generally
accepted in the United States. These differences are primarily due to differing
treatments for futures and options transactions, paydowns, market discounts, and
losses deferred due to wash sales.
F-36
<PAGE> 97
MONY SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
6. TAX BASIS UNREALIZED GAIN (LOSS) OF INVESTMENTS AND DISTRIBUTIONS (CONTINUED)
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital. Any taxable
gain remaining at fiscal year end is distributed in the following year.
During the year ended December 31, 1999, the Equity Growth Portfolio
increased undistributed net investment income and decreased undistributed
realized gains by $15,892 and the Equity Income Portfolio increased
undistributed realized gains and decreased undistributed net investment income
by $8,521. These differences are primarily due to return of capital
distributions received on investments. These reclassifications had no impact on
net assets or net asset values per share.
7. FEDERAL INCOME TAX-CAPITAL LOSS CARRYFORWARD
At December 31, 1999, the following Portfolios had 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
34,136 December 31, 2007
--------
$168,939
========
Long Term Bond.............................................. 492,687 December 31, 2007
========
</TABLE>
F-37
<PAGE> 98
MONY SERIES FUND, INC.
DECEMBER 31, 1999
FEDERAL TAX INFORMATION (UNAUDITED):
The capital gains distributions paid to shareholders from each Portfolio,
taken in additional shares, were as follows:
<TABLE>
<S> <C>
Equity Growth............................................... $ 244,903
Equity Income............................................... 3,095,880
Intermediate Term Bond...................................... --
Long Term Bond.............................................. 2,277,660
Diversified................................................. 360,297
Government Securities....................................... 1,135
</TABLE>
F-38
<PAGE> 99
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors
of MONY Series Fund, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified, Government Securities, and
Money Market Portfolios of the MONY Series Fund, Inc. (collectively the "Fund")
at December 31, 1999, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999, by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 16, 2000
F-39
