<PAGE> 1
- --------------------------------------------------------------------------------
MONY Custom Estate Master
- --------------------------------------------------------------------------------
Supplement to Prospectus Portfolio
Dated May 1, 1999
- --------------------------------------------------------------------------------
Last Survivor Flexible Premium
Variable Universal Life Insurance Policy
Issued by
MONY Life Insurance Company of America
Supplement dated November 1, 1999
- --------------------------------------------------------------------------------
<PAGE> 2
SUPPLEMENT DATED NOVEMBER 1, 1999
to
PROSPECTUS DATED MAY 1, 1999
for
Last Survivor Flexible Premium Variable
Universal Life Insurance Policy
Issued by
MONY Life Insurance Company of America
MONY America Variable Account L
EFFECTIVE NOVEMBER 1, 1999 THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED
IN YOUR PROSPECTUS. PLEASE READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE
REFERENCE.
1. THE FIRST SENTENCE OF THE THIRD BULLET ON THE COVER PAGE IS HEREBY AMENDED
TO READ AS FOLLOWS:
- If you do, you can also tell us to place your purchase payments and
cash values into any or all of 25 different subaccounts.
2. THE INFORMATION ON THE COVER PAGE IN THE NEXT TO THE LAST SENTENCE UNDER THE
LEGEND IS AMENDED TO READ AS FOLLOWS:
This prospectus comes with prospectuses for the MONY Series Fund, Inc.,
Enterprise Accumulation Trust, Dreyfus Stock Index Fund, The Dreyfus
Socially Responsible Growth Fund, Inc., Fidelity Variable Insurance
Products Fund, Fidelity Variable Insurance Products Fund II, Fidelity
Variable Insurance Products Fund III and Janus Aspen Series.
3. PAGE i OF THE TABLE OF CONTENTS IS AMENDED TO ADD THE FOLLOWING AFTER "THE
FUNDS":
Dreyfus Stock Index Fund, The Dreyfus Socially Responsible Growth Fund,
Inc., Fidelity Variable Insurance Products Fund, Fidelity Variable
Insurance Products Fund II, Fidelity Variable Insurance Products Fund III
and Janus Aspen Series.
4. THE TABLE OF ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1998 ON PAGE 4
IS AMENDED TO ADD THE FOLLOWING INFORMATION:
<TABLE>
<CAPTION>
OTHER EXPENSES
(AFTER
FUND/PORTFOLIO MANAGEMENT FEES REIMBURSEMENT) TOTAL EXPENSES
- ------------------------------------- --------------- -------------- --------------
<S> <C> <C> <C>
Enterprise Multi-Cap Growth
Portfolio.......................... 1.00% 0.40% 1.40%(4)(5)
Enterprise Balanced Portfolio........ 0.75% 0.20% 0.95%(4)(5)
DREYFUS STOCK INDEX FUND............. 0.25% 0.01% 0.26%(5)
THE DREYFUS SOCIALLY RESPONSIBLE
GROWTH FUND, INC................... 0.75% 0.05% 0.80%(5)
FIDELITY VARIABLE INSURANCE PRODUCTS
FUND
Growth Portfolio..................... 0.59% 0.16%(8) 0.75%(5)(6)
FIDELITY VARIABLE INSURANCE PRODUCTS
FUND II
Contrafund Portfolio................. 0.59% 0.16%(8) 0.75%(5)(6)
FIDELITY VARIABLE INSURANCE PRODUCTS
FUND III
Growth Opportunities Portfolio....... 0.59% 0.20%(8) 0.79%(5)(6)
JANUS ASPEN SERIES
Aggressive Growth Portfolio.......... 0.72% 0.03% 0.75%(5)
Balanced Portfolio................... 0.72% 0.02% 0.74%(5)
</TABLE>
1
<PAGE> 3
<TABLE>
<CAPTION>
OTHER EXPENSES
(AFTER
FUND/PORTFOLIO MANAGEMENT FEES REIMBURSEMENT) TOTAL EXPENSES
- ------------------------------------- --------------- -------------- --------------
<S> <C> <C> <C>
Capital Appreciation Portfolio....... 0.70% 0.22% 0.92%(5)(7)
Worldwide Growth Portfolio........... 0.65% 0.07% 0.72%(5)(7)
</TABLE>
- ---------------
(4) Enterprise Capital Management, Inc. has agreed to limit expenses on the
Multi-Cap Growth and the Balanced Portfolios to 1.40% and 0.95%,
respectively.
(5) The sub-account corresponding to this Fund/Portfolio first became
available for allocation in November, 1999.
(6) Expenses are net of reimbursements. Absent reimbursements, expenses
would have been 0.80%.
(7) Fees and expenses are net of waivers. Absent waivers, expenses for the
Capital Appreciation and Worldwide Growth Portfolios would have been
0.97% and 0.74%, respectively.
(8) Other expenses includes a distribution and service (12b-1) fee of
0.10%.
5. THE DIAGRAM ON PAGES 9 AND 32 IS AMENDED BY CHANGING THE NUMBER OF
SUBACCOUNTS AND PORTFOLIOS TO "25".
6. THE TABLE LISTING SUBACCOUNTS BEGINNING ON PAGE 13 OF THE PROSPECTUS IS
AMENDED TO ADD THE FOLLOWING INFORMATION:
<TABLE>
<CAPTION>
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
<S> <C>
ENTERPRISE BALANCED SUBACCOUNT Seeks long-term total return. Generally,
between 55% and 75% of its total assets
This subaccount purchases shares of the will be invested in equity securities,
Enterprise Accumulation Trust Balanced and between 45% and 25% in fixed income
Portfolio. securities to provide a stable flow of
income. Allocation will vary based on
the manager's assessment of the return
potential of each asset class.
ENTERPRISE MULTI-CAP GROWTH SUBACCOUNT Seeks long-term capital appreciation by
primarily investing in growth stocks.
This subaccount purchases shares of the Companies will tend to fall into one of
Enterprise Accumulation Trust Multi-Cap two categories: companies that offer
Growth Portfolio. goods or services to a rapidly expanding
marketplace or companies experiencing a
major change that is expected to produce
advantageous results.
DREYFUS STOCK INDEX SUBACCOUNT Seeks to match the total return of the
Standard & Poor's 500 Composite Stock
This subaccount purchases shares of the Price Index. Generally invests in all
Dreyfus Stock Index Fund. 500 stocks in the S&P 500 in proportion
to their weighting in the index.
DREYFUS SOCIALLY RESPONSIBLE SUBACCOUNT Seeks to provide capital growth, with
current income as a secondary goal.
This subaccount purchases shares of The Invest primarily in common stock of
Dreyfus Socially Responsible Growth companies that, in the opinion of its
Fund, Inc. management, meet traditional investment
standards and conduct their business in
a manner that contributes to the
enhancement of the quality of life in
America.
</TABLE>
2
<PAGE> 4
<TABLE>
<CAPTION>
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
<S> <C>
FIDELITY GROWTH SUBACCOUNT Seeks to achieve capital appreciation by
investing its assets primarily in common
This subaccount purchases shares of stocks that it believes have
Fidelity Variable Insurance Products above-average growth potential. Tends to
Fund -- Growth fund. be companies with higher than average
price/earnings ratios, and with new
products, technologies, distribution
channels or other opportunities, or with
a strong industry or market position.
May invest in securities of foreign
issuers in addition to those of domestic
issuers.
FIDELITY CONTRAFUND SUBACCOUNT Seeks long-term capital appreciation by
investing mainly in equity securities of
This subaccount purchases shares of companies whose value it believes is not
Fidelity Variable Insurance Products fully recognized by the public.
Fund -- Contrafund fund. Typically, includes companies in
turnaround situations, companies
experiencing transitory difficulties,
and undervalued companies. May invest in
securities of foreign issuers in
addition to those of domestic issuers.
FIDELITY GROWTH OPPORTUNITIES SUBACCOUNT Seeks to provide capital growth by
investing primarily in common stocks.
This subaccount purchases shares of May also invest in other types of
Fidelity Variable Insurance Products securities, including bonds, which may
Fund -- Growth Opportunities fund. be lower-quality debt securities. May
invest in securities of foreign issuers
in addition to those of domestic
issuers.
JANUS AGGRESSIVE GROWTH SUBACCOUNT Seeks long-term growth of capital by
investing primarily in common stocks
This subaccount purchases shares of selected for their growth potential.
Janus Aspen Series -- Aggressive Growth Normally, it invests at least 50% of its
Portfolio. equity assets in medium-sized companies
with market capitalizations falling
within the range of companies in the S&P
MidCap 400 Index. Market capitalization
within the Index will vary but as of
12/31/98, they ranged from approximately
$142 million to $73 billion.
JANUS BALANCED SUBACCOUNT Seeks long-term capital growth,
consistent with preservation of capital
This subaccount purchases shares of and balanced by current income. Normally
Janus Aspen Series -- Balanced invests 40-60% of its assets in
Portfolio. securities selected primarily for their
growth potential, and 40-60% in
securities selected primarily for their
income potential and at least 25% of its
assets in fixed-income securities.
</TABLE>
3
<PAGE> 5
<TABLE>
<CAPTION>
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
<S> <C>
JANUS CAPITAL APPRECIATION SUBACCOUNT Seeks long-term growth of capital. It
pursues its objective by investing
This subaccount purchases shares of primarily in common stocks selected for
Janus Aspen Series -- Capital their growth potential. The portfolio
Appreciation Portfolio. may invest in companies of any size,
from larger, well-established companies
to smaller, emerging growth companies.
JANUS WORLDWIDE GROWTH SUBACCOUNT Seeks long-term growth of capital in a
manner consistent with the preservation
This subaccount purchases shares of of capital. It pursues this objective by
Janus Aspen Series -- Worldwide Growth investing primarily in common stocks of
Portfolio. companies of any size throughout the
world. Normally invests in issuers from
at least five different countries,
including the United States but may at
times invest in fewer than five
countries or even in a single country.
</TABLE>
7. THE FIRST SENTENCE OF THE FIRST PARAGRAPH UNDER "THE FUNDS" ON PAGE 15 IS
DELETED AND REPLACED WITH THE FOLLOWING:
Each available subaccount of MONY America Variable Account L will
invest only in the shares of the designated portfolio of the Funds. The
Funds (except for the Dreyfus Stock Index Fund) are diversified, open-end
management investment companies. The Dreyfus Stock Index Fund is a non-
diversified, open-end management investment company.
8. THE FIRST AND LAST SENTENCES OF THE PARAGRAPH UNDER THE HEADING "ENTERPRISE
ACCUMULATION TRUST" ON PAGE 16 ARE AMENDED TO READ, RESPECTIVELY, AS
FOLLOWS:
"Enterprise Accumulation Trust" has a number of portfolios; the shares
of some of these portfolios can be purchased by subaccounts available to
you.
The daily investment advisory fees and sub-advisory fees for each portfolio
purchased by subaccounts available to you are shown in the chart below.
9. THE TABLE UNDER THE HEADING "ENTERPRISE ACCUMULATION TRUST" ON PAGE 16 IS
AMENDED TO ADD THE FOLLOWING SUBACCOUNTS:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCED PORTFOLIO Annual rate of 1.00% of the Annual rate of 0.30% up to $1
aggregate average daily net billion and 0.20% in excess of
Montag & Caldwell, Inc. is the assets. $1 billion of the portfolio's
sub-investment adviser. aggregate average daily net
assets.
------------------------------------------------------------------------------------------------------------
MULTI-CAP PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.40% of the
aggregate average daily net aggregate average daily net
Fred Alger Management Inc. is the assets. assets.
sub-investment adviser.
------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 6
10. THE FIRST COLUMN OF THE ENTERPRISE ACCUMULATION TRUST TABLE ON PAGE 16 IS
AMENDED TO CHANGE THE NAME OF THE SUB-INVESTMENT ADVISER FOR THE EQUITY
PORTFOLIO TO TCW FUNDS MANAGEMENT, INC. AND TO ADD SANFORD C. BERNSTEIN &
CO., INC. AS THE CO-SUB-INVESTMENT ADVISER TO THE MANAGED PORTFOLIO.
11. THE FIRST COLUMN OF THE ENTERPRISE ACCUMULATION TRUST TABLE ON PAGE 17 IS
AMENDED TO CHANGE THE NAME OF THE SUB-INVESTMENT ADVISER OF THE CAPITAL
APPRECIATION PORTFOLIO TO MARSICO CAPITAL MANAGEMENT, LLC.
12. THE TABLES SETTING FORTH THE SUB-INVESTMENT ADVISER, INVESTMENT ADVISER FEES
AND SUB-INVESTMENT ADVISER FEES BEGINNING ON PAGE 15 ARE AMENDED TO ADD THE
FOLLOWING INFORMATION ON PAGE 18:
DREYFUS STOCK INDEX FUND
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Corporation is the investment adviser of the Dreyfus Stock
Index Fund and The Dreyfus Socially Responsible Growth Fund, Inc. As
described below, the Fund or The Dreyfus Corporation contracts with
sub-investment advisers to assist in managing the portfolios as noted below.
Fees are deducted on a monthly basis. The daily investment advisory fees and
sub-investment advisory fees for each portfolio are shown in the table
below.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DREYFUS STOCK INDEX FUND Annual rate of 0.245% of the Dreyfus Corporation pays the
fund's average daily net sub-adviser an annual rate of
Mellon Equity Associates is the assets. 0.095% of the value of the
sub-investment adviser. fund's average daily net
assets.
------------------------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE Annual rate of 0.75% of the Dreyfus Corporation pays the
GROWTH FUND, INC. fund's average daily net sub-adviser an annual rate of
assets. 0.10% of the first $32 million,
NCM Capital Management Group, Inc. 0.15% in excess of $32 million
is the sub-investment adviser. up to $150 million, 0.20% in
excess of $150 million up to
$300 million, 0.25% in excess
of $300 million of the value of
the fund's average daily net
assets.
------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 7
FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- GROWTH PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II -- CONTRAFUND PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III -- GROWTH OPPORTUNITIES
PORTFOLIO
Fidelity Management & Research ("FMR") is each fund's investment
manager. As the manager, FMR is responsible for choosing investments for the
funds and handling the funds' business affairs. Affiliates assist FMR with
foreign investments.
<TABLE>
<CAPTION>
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND -- GROWTH PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) result by the fund's average net assets
Inc. and Fidelity Management & Research throughout the month. The group fee rate
Far East Inc. are the sub-investment is based on the average net assets of
advisers. all the mutual funds advised by FMR.
This group rate cannot rise above 0.52%
for this fund, and it drops as total
assets under management increase. The
individual fee rate for this fund is
0.30% of the fund's average net assets.
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND II -- CONTRAFUND PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) result by the fund's average net assets
Inc. and Fidelity Management & Research throughout the month. The group fee rate
Far East Inc. are the sub-investment is based on the average net assets of
advisers. all the mutual funds advised by FMR.
This group rate cannot rise above 0.52%
for this fund, and it drops as total
assets under management increase. The
individual fee rate for this fund is
0.30% of the fund's average net assets.
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND III -- GROWTH OPPORTUNITIES fee rate to an individual fee rate,
PORTFOLIO dividing by twelve, and multiplying the
result by the fund's average net assets
Fidelity Management & Research (U.K.) throughout the month. The group fee rate
Inc. and Fidelity Management & Research is based on the average net assets of
Far East Inc. are the sub-investment all the mutual funds advised by FMR.
advisers. This group rate cannot rise above 0.52%
for this fund, and it drops as total
assets under management increase. The
individual fee rate for this fund is
0.30% of the fund's average net assets.
</TABLE>
6
<PAGE> 8
JANUS ASPEN SERIES
Janus Aspen Series has eleven portfolios. The shares of four of the
portfolios can be purchased by the subaccounts available to you. Janus
Capital is the investment adviser to each of the portfolios and is
responsible for the day-to-day management of the investment portfolios and
other business affairs of the portfolios.
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT ADVISER FEE
<S> <C>
JANUS ASPEN SERIES -- AGGRESSIVE GROWTH Annual rate of 0.75% of the first $300
PORTFOLIO million, 0.70% of the next $200 million,
0.65% over $500 million of the
portfolio's average daily net assets.*
JANUS ASPEN SERIES -- BALANCED Annual rate of 0.75% of the first $300
PORTFOLIO million, 0.70% of the next $200 million,
0.65% over $500 million of the
portfolio's average daily net assets.*
JANUS ASPEN SERIES -- CAPITAL Annual rate of 0.75% of the first $300
APPRECIATION PORTFOLIO million, 0.70% of the next $200 million,
0.65% over $500 million of the
portfolio's average daily net assets.*
JANUS ASPEN SERIES -- WORLDWIDE GROWTH Annual rate of 0.75% of the first $300
PORTFOLIO million, 0.70% of the next $200 million,
0.65% over $500 million of the
portfolio's average daily net assets.*
* Janus Capital has agreed to reduce the portfolio's management fee to the extent
that such fee exceeds the effective rate of the Janus retail fund corresponding to such
portfolio.
</TABLE>
13. THE FIRST PARAGRAPH FOLLOWING THE TABLE ON PAGE 18 IS AMENDED TO READ AS
FOLLOWS:
The investment objectives of each portfolio (except for the Janus
portfolios) are fundamental and may not be changed without the approval of
the holders of a majority of the outstanding shares of the portfolio
affected. For each of the Funds a majority means the lesser of:
(1) 67% of the portfolio shares represented at a meeting at which more
than 50% of the outstanding portfolio shares are represented, or
(2) more than 50% of the outstanding portfolio shares.
The investment objectives of the Janus portfolios are non-fundamental and
may be changed by the Fund's Trustees without a shareholder vote.
14. THE SECOND SENTENCE UNDER "FEES AND EXPENSES OF THE FUNDS" ON PAGE 42 IS
HEREBY AMENDED TO READ AS FOLLOWS:
These fees and expenses vary by portfolio and are set forth on page 4.
15. THE INFORMATION ON PAGE 43 OF THE PROSPECTUS IS DELETED.
7
<PAGE> 9
16. PAGE 51 OF THE PROSPECTUS UNDER THE HEADING "PERFORMANCE INFORMATION" IS
AMENDED TO ADD THE FOLLOWING INFORMATION:
We may also use non-standard performance in cases where we add new
subaccounts which purchase shares of underlying funds in existence prior to
the formation of such subaccounts. In such cases we will use the historical
performance of the underlying fund with the current expenses of the
applicable subaccount under the Contract.
17. EXISTING SUBACCOUNT NAMES IN THE PROSPECTUS ARE CHANGED WHENEVER THEY APPEAR
AS SPECIFIED IN THE TABLE BELOW:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
OLD SUBACCOUNT NAME NEW SUBACCOUNT NAME
--------------------------------------------------------------------------------------
<S> <C>
The Money Market Subaccount MONY Money Market Subaccount
--------------------------------------------------------------------------------------
The Government Securities Subaccount MONY Government Securities Subaccount
--------------------------------------------------------------------------------------
The Intermediate Term Bond Subaccount MONY Intermediate Term Bond Subaccount
--------------------------------------------------------------------------------------
The Long Term Bond Subaccount MONY Long Term Bond Subaccount
--------------------------------------------------------------------------------------
The Equity Subaccount Enterprise Equity Subaccount
--------------------------------------------------------------------------------------
The Managed Subaccount Enterprise Managed Subaccount
--------------------------------------------------------------------------------------
The Small Company Value Subaccount Enterprise Small Company Value Subaccount
--------------------------------------------------------------------------------------
The International Growth Subaccount Enterprise International Growth
Subaccount
--------------------------------------------------------------------------------------
The Growth Subaccount Enterprise Growth Subaccount
--------------------------------------------------------------------------------------
The Growth and Income Subaccount Enterprise Growth and Income Subaccount
--------------------------------------------------------------------------------------
The Equity Income Subaccount Enterprise Equity Income Subaccount
--------------------------------------------------------------------------------------
The Small Company Growth Subaccount Enterprise Small Company Growth
Subaccount
--------------------------------------------------------------------------------------
The Capital Appreciation Subaccount Enterprise Capital Appreciation
Subaccount
--------------------------------------------------------------------------------------
The High Yield Bond Subaccount Enterprise High Yield Bond Subaccount
--------------------------------------------------------------------------------------
</TABLE>
18. THE FIRST SENTENCE UNDER "ALLOCATION OF NET PREMIUMS" ON PAGE 23 IS AMENDED
TO READ AS FOLLOWS:
Net premiums may be allocated to up to 21 of the twenty-five available
subaccounts and to the Guaranteed Interest Account.
Form No. 14504 SL (11/1/99) Reg. No. 333-64417
8
<PAGE> 10
The financial statements that follow supplement the Financial Statements
and Notes to Financial Statements found beginning on page F-1 of the MONY Custom
Estate Master Prospectus Portfolio dated May 1, 1999.
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account L:
Statements of assets and liabilities as of June 30, 1999
(unaudited)............................................ F- 2
Statements of operations for the periods ended June 30,
1999 (unaudited)....................................... F- 4
Statements of changes in net assets for the periods ended
June 30, 1999 (unaudited).............................. F- 6
Notes to financial statements (unaudited)................. F- 8
No financial statements for MONY America Variable Account
L are included as of December 31, 1998 because although
the MONY America Variable Account L commenced
operations in 1985, the subaccounts available to
policyholders had not commenced operations as of
December 31, 1998.
With respect to MONY Life Insurance Company of America:
Unaudited interim condensed balance sheets as of June 30,
1999 and December 31, 1998............................. F-11
Unaudited interim condensed statements of income and
comprehensive income for the three-month periods ended
June 30, 1999 and 1998................................. F-12
Unaudited interim condensed statements of income and
comprehensive income for the six-month periods ended
June 30, 1999 and 1998................................. F-13
Unaudited interim condensed statement of changes in
shareholder's equity for the six-month period ended
June 30, 1999.......................................... F-14
Unaudited interim condensed statements of cash flows for
the six-month periods ended June 30, 1999 and 1998..... F-15
Notes to unaudited interim condensed financial
statements............................................. F-16
</TABLE>
F-1
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $84,252 $94,170 $31,507 $ 98,226 $78,420 $87,009 $265,912
======= ======= ======= ======== ======= ======= ========
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $ 0 $ 0 $ 0 $ 0 $79,827 $92,858 $272,980
Investments in MONY Series Fund,
Inc., at net asset value (Note
2).............................. 79,863 86,618 31,110 98,226 0 0 0
Amount due from Enterprise
Accumulation Trust.............. 0 0 0 0 0 191 318
Amount due from MONY America...... 0 0 0 0 59 26 68
------- ------- ------- -------- ------- ------- --------
Total assets............. 79,863 86,618 31,110 98,226 79,886 93,075 273,366
------- ------- ------- -------- ------- ------- --------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 0 0 0 0 59 26 68
Amount due to MONY America........ 0 0 0 0 0 191 318
------- ------- ------- -------- ------- ------- --------
Total liabilities........ 0 0 0 0 59 217 386
------- ------- ------- -------- ------- ------- --------
Net assets........................ $79,863 $86,618 $31,110 $ 98,226 $79,827 $92,858 $272,980
======= ======= ======= ======== ======= ======= ========
Net assets consist of:
Contractholders' net payments... $81,365 $90,325 $31,660 $102,423 $80,565 $89,360 $270,976
Cost of insurance withdrawals
(Note 3)...................... (743) (806) (428) (5,500) (2,310) (2,497) (6,665)
Undistributed net investment
income (loss)................. 3,651 4,712 289 1,303 (49) (57) (169)
Accumulated net realized gain
(loss) on investments......... (21) (61) (14) 0 214 203 1,770
Unrealized appreciation
(depreciation) of
investments................... (4,389) (7,552) (397) 0 1,407 5,849 7,068
------- ------- ------- -------- ------- ------- --------
Net assets........................ $79,863 $86,618 $31,110 $ 98,226 $79,827 $92,858 $272,980
======= ======= ======= ======== ======= ======= ========
Number of units outstanding*...... 7,973 9,008 3,118 9,631 7,353 8,251 25,374
------- ------- ------- -------- ------- ------- --------
Net asset value per unit
outstanding*.................... $ 10.02 $ 9.62 $ 9.98 $ 10.20 $ 10.86 $ 11.25 $ 10.76
======= ======= ======= ======== ======= ======= ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-2
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)... $30,380 $21,011 $482,498 $232,137 $54,117 $156,680 $45,641
======= ======= ======== ======== ======= ======== =======
Investments in Enterprise
Accumulation Trust at net
asset value (Note 2)......... $31,114 $20,592 $500,815 $246,809 $62,709 $164,155 $48,862
Amount due from Enterprise
Accumulation Trust........... 127 0 13,747 0 0 0 0
Amount due from MONY America... 13 13 96 0 0 0 0
------- ------- -------- -------- ------- -------- -------
Total assets.......... 31,254 20,605 514,658 246,809 62,709 164,155 48,862
------- ------- -------- -------- ------- -------- -------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........... 13 13 96 0 0 0 0
Amount due to MONY America..... 127 0 13,747 0 0 0 0
------- ------- -------- -------- ------- -------- -------
Total liabilities..... 140 13 13,843 0 0 0 0
------- ------- -------- -------- ------- -------- -------
Net assets..................... $31,114 $20,592 $500,815 $246,809 $62,709 $164,155 $48,862
======= ======= ======== ======== ======= ======== =======
Net assets consist of:
Contractholders' net
payments................... $30,885 $21,600 $490,086 $233,559 $56,028 $158,695 $46,478
Cost of insurance withdrawals
(Note 3)................... (469) (971) (8,808) (1,835) (2,313) (2,397) (1,056)
Undistributed net investment
income (loss).............. (25) 391 (199) (116) (48) 207 (35)
Accumulated net realized gain
(loss) on investments...... (11) (9) 1,419 529 450 175 254
Unrealized appreciation
(depreciation) of
investments................ 734 (419) 18,317 14,672 8,592 7,475 3,221
------- ------- -------- -------- ------- -------- -------
Net assets..................... $31,114 $20,592 $500,815 $246,809 $62,709 $164,155 $48,862
======= ======= ======== ======== ======= ======== =======
Number of units outstanding*... 3,153 2,033 44,935 21,235 5,449 14,727 4,410
------- ------- -------- -------- ------- -------- -------
Net asset value per unit
outstanding*................. $ 9.87 $ 10.13 $ 11.15 $ 11.62 $ 11.51 $ 11.15 $ 11.08
======= ======= ======== ======== ======= ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- ------------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** FEBRUARY 12, 1999** FEBRUARY 12, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Dividend income............... $ 3,711 $ 4,776 $ 303 $ 1,411
Mortality and expense risk
charges (Note 3)............ (60) (64) (14) (108)
------- ------- ----- ---------
Net investment income
(loss)...................... 3,651 4,712 289 1,303
------- ------- ----- ---------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 1,577 870 442 114,495
Cost of shares sold......... (1,598) (931) (456) (114,495)
------- ------- ----- ---------
Net realized gain (loss) on
investments................. (21) (61) (14) 0
Net increase (decrease) in
unrealized appreciation of
investments................. (4,389) (7,552) (397) 0
------- ------- ----- ---------
Net realized and unrealized
gain (loss) on
investments................. (4,410) (7,613) (411) 0
------- ------- ----- ---------
Net increase (decrease) in net
assets resulting from
operations.................. $ (759) $(2,901) $(122) $ 1,303
======= ======= ===== =========
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** JANUARY 7, 1999** JANUARY 4, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ----------------- ------------------
<S> <C> <C> <C>
Dividend income............... $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)............ (49) (57) (169)
------- ------- --------
Net investment income
(loss)...................... (49) (57) (169)
------- ------- --------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 3,120 2,949 29,326
Cost of shares sold......... (2,906) (2,746) (27,556)
------- ------- --------
Net realized gain (loss) on
investments................. 214 203 1,770
Net increase (decrease) in
unrealized appreciation of
investments................. 1,407 5,849 7,068
------- ------- --------
Net realized and unrealized
gain (loss) on
investments................. 1,621 6,052 8,838
------- ------- --------
Net increase (decrease) in net
assets resulting from
operations.................. $ 1,572 $ 5,995 $ 8,669
======= ======= ========
</TABLE>
- ---------------
** Commencement of operations
See notes to financial statements.
F-4
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 6, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Dividend income................. $ 0 $ 408 $ 0 $ 0
Mortality and expense risk
charges (Note 3).............. (25) (17) (199) (116)
----- ----- -------- -------
Net investment income (loss).... (25) 391 (199) (116)
----- ----- -------- -------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales........... 494 987 45,433 6,689
Cost of shares sold........... (505) (996) (44,014) (6,160)
----- ----- -------- -------
Net realized gain (loss) on
investments................... (11) (9) 1,419 529
Net increase (decrease) in
unrealized appreciation of
investments................... 734 (419) 18,317 14,672
----- ----- -------- -------
Net realized and unrealized gain
(loss) on investments......... 723 (428) 19,736 15,201
----- ----- -------- -------
Net increase (decrease) in net
assets resulting from
operations.................... $ 698 $ (37) $ 19,537 $15,085
===== ===== ======== =======
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- -------------------
<S> <C> <C> <C>
Dividend income................. $ 0 $ 311 $ 0
Mortality and expense risk
charges (Note 3).............. (48) (104) (35)
-------- ------- -------
Net investment income (loss).... (48) 207 (35)
-------- ------- -------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales........... 20,809 2,500 3,466
Cost of shares sold........... (20,359) (2,325) (3,212)
-------- ------- -------
Net realized gain (loss) on
investments................... 450 175 254
Net increase (decrease) in
unrealized appreciation of
investments................... 8,592 7,475 3,221
-------- ------- -------
Net realized and unrealized gain
(loss) on investments......... 9,042 7,650 3,475
-------- ------- -------
Net increase (decrease) in net
assets resulting from
operations.................... $ 8,994 $ 7,857 $ 3,440
======== ======= =======
</TABLE>
- ---------------
** Commencement of operations
See notes to financial statements.
F-5
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- ------------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** FEBRUARY 12, 1999** FEBRUARY 12, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ------------------- ------------------- ------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)... $ 3,651 $ 4,712 $ 289 $ 1,303
Net realized gain (loss) on
investments.................. (21) (61) (14) 0
Net increase (decrease) in
unrealized appreciation of
investments.................. (4,389) (7,552) (397) 0
------- ------- ------- --------
Net increase (decrease) in net
assets resulting from
operations..................... (759) (2,901) (122) 1,303
------- ------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 81,559 90,325 31,660 184,205
Net asset value of units
redeemed or used to meet
contract obligations......... (937) (806) (428) (87,282)
------- ------- ------- --------
Net increase from unit
transactions................... 80,622 89,519 31,232 96,923
------- ------- ------- --------
Net increase in net assets....... 79,863 86,618 31,110 98,226
Net assets beginning of period... 0 0 0 0
------- ------- ------- --------
Net assets end of period*........ $79,863 $86,618 $31,110 $ 98,226
======= ======= ======= ========
Units outstanding beginning of
period......................... 0 0 0 0
Units issued during the period... 8,067 9,091 3,161 18,241
Units redeemed during the
period......................... (94) (83) (43) (8,610)
------- ------- ------- --------
Units outstanding end of
period......................... 7,973 9,008 3,118 9,631
======= ======= ======= ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 3,651 $ 4,712 $ 289 $ 1,303
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** JANUARY 7, 1999** JANUARY 4, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
------------------ ----------------- -----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income (loss)... $ (49) $ (57) $ (169)
Net realized gain (loss) on
investments.................. 214 203 1,770
Net increase (decrease) in
unrealized appreciation of
investments.................. 1,407 5,849 7,068
------- ------- --------
Net increase (decrease) in net
assets resulting from
operations..................... 1,572 5,995 8,669
------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 80,758 89,360 279,680
Net asset value of units
redeemed or used to meet
contract obligations......... (2,503) (2,497) (15,369)
------- ------- --------
Net increase from unit
transactions................... 78,255 86,863 264,311
------- ------- --------
Net increase in net assets....... 79,827 92,858 272,980
Net assets beginning of period... 0 0 0
------- ------- --------
Net assets end of period*........ $79,827 $92,858 $272,980
======= ======= ========
Units outstanding beginning of
period......................... 0 0 0
Units issued during the period... 7,591 8,485 26,886
Units redeemed during the
period......................... (238) (234) (1,512)
------- ------- --------
Units outstanding end of
period......................... 7,353 8,251 25,374
======= ======= ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (49) $ (57) $ (169)
** Commencement of operations
</TABLE>
See notes to financial statements.
F-6
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- ----------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 6, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- ----------------- ------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ (25) $ 391 $ (199) $ (116)
Net realized gain (loss) on
investments................... (11) (9) 1,419 529
Net increase (decrease) in
unrealized appreciation of
investments................... 734 (419) 18,317 14,672
------- ------- -------- --------
Net increase (decrease) in net
assets resulting from
operations...................... 698 (37) 19,537 15,085
------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 30,885 21,600 499,200 233,559
Net asset value of units
redeemed or used to meet
contract obligations.......... (469) (971) (17,922) (1,835)
------- ------- -------- --------
Net increase from unit
transactions.................... 30,416 20,629 481,278 231,724
------- ------- -------- --------
Net increase in net assets........ 31,114 20,592 500,815 246,809
Net assets beginning of period.... 0 0 0 0
------- ------- -------- --------
Net assets end of period*......... $31,114 $20,592 $500,815 $246,809
======= ======= ======== ========
Units outstanding beginning of
period.......................... 0 0 0 0
Units issued during the period.... 3,201 2,129 46,617 21,403
Units redeemed during the
period.......................... (48) (96) (1,682) (168)
------- ------- -------- --------
Units outstanding end of period... 3,153 2,033 44,935 21,235
======= ======= ======== ========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (25) $ 391 $ (199) $ (116)
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- ------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income (loss).... $ (48) $ 207 $ (35)
Net realized gain (loss) on
investments................... 450 175 254
Net increase (decrease) in
unrealized appreciation of
investments................... 8,592 7,475 3,221
------- -------- -------
Net increase (decrease) in net
assets resulting from
operations...................... 8,994 7,857 3,440
------- -------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 60,890 158,695 46,478
Net asset value of units
redeemed or used to meet
contract obligations.......... (7,175) (2,397) (1,056)
------- -------- -------
Net increase from unit
transactions.................... 53,715 156,298 45,422
------- -------- -------
Net increase in net assets........ 62,709 164,155 48,862
Net assets beginning of period.... 0 0 0
------- -------- -------
Net assets end of period*......... $62,709 $164,155 $48,862
======= ======== =======
Units outstanding beginning of
period.......................... 0 0 0
Units issued during the period.... 6,204 14,950 4,510
Units redeemed during the
period.......................... (755) (223) (100)
------- -------- -------
Units outstanding end of period... 5,449 14,727 4,410
======= ======== =======
- ---------------
* Includes undistributed net
investment income (loss) of: $ (48) $ 207 $ (35)
** Commencement of operations
</TABLE>
See notes to financial statements.
F-7
<PAGE> 17
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life (Strategist), Variable Universal Life (MONYEquity
Master, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable Life Insurance policies. These policies are issued by MONY
America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to the
Variable Universal Life Insurance policies (MONY Custom Estate Master) is
presented here.
There are currently fourteen MONY Custom Estate Master Subaccounts within
the Variable Account each invests only in a corresponding portfolio of the MONY
Series Fund, Inc. (the "Fund") or the Enterprise Accumulation Trust
("Enterprise") (collectively, the "Funds"). The subaccounts of MONY Custom
Estate Master commenced operations during 1999. The Funds are registered under
the 1940 Act as open end, diversified, management investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of each portfolio. Except for the
Money Market Portfolio, net asset values are based upon market valuations of the
securities held in each of the corresponding portfolios of the Funds. For the
Money Market Portfolio, the net asset values are based on amortized cost of the
securities held which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for the MONY Custom Estate Master Subaccounts for six months ended June
30, 1999 aggregated $36,799.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.35 percent (for the MONY
Custom Estate Master Subaccounts) of average daily net assets of the
subaccounts. As investment adviser to the Fund, it receives amounts paid by the
Fund for those services.
F-8
<PAGE> 18
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at June 30, 1999 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------- -------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................... 0 0 0 0 0 0 0
Amount..................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------- ------- ------- --------- ------- ------- --------
Shares acquired:
Shares..................... 7,240 6,603 2,894 211,310 2,080 3,079 6,947
Amount..................... $82,139 $90,325 $31,660 $ 211,310 $81,326 $89,755 $293,468
Shares received for
reinvestment of dividends:
Shares..................... 345 377 28 1,411 0 0 0
Amount..................... $ 3,711 $ 4,776 $ 303 $ 1,411 $ 0 $ 0 $ 0
Shares redeemed:
Shares..................... (142) (67) (41) (114,495) (82) (99) (683)
Amount..................... $(1,598) $ (931) $ (456) $(114,495) $(2,906) $(2,746) $(27,556)
------- ------- ------- --------- ------- ------- --------
Net change:
Shares..................... 7,443 6,913 2,881 98,226 1,998 2,980 6,264
Amount..................... $84,252 $94,170 $31,507 $ 98,226 $78,420 $87,009 $265,912
------- ------- ------- --------- ------- ------- --------
Shares end of period:
Shares..................... 7,443 6,913 2,881 98,226 1,998 2,980 6,264
Amount..................... $84,252 $94,170 $31,507 $ 98,226 $78,420 $87,009 $265,912
======= ======= ======= ========= ======= ======= ========
</TABLE>
F-9
<PAGE> 19
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at June 30, 1999
consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- --------- ---------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares.................... 0 0 0 0 0 0 0
Amount.................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------- ------- -------- -------- --------- -------- -------
Shares acquired:
Shares.................... 4,622 4,030 93,588 42,124 13,855 29,458 8,539
Amount.................... $30,885 $21,599 $526,512 $238,297 $ 74,476 $158,694 $48,853
Shares received for
reinvestment of dividends:
Shares.................... 0 77 0 0 0 55 0
Amount.................... $ 0 $ 408 $ 0 $ 0 $ 0 $ 311 $ 0
Shares redeemed:
Shares.................... (73) (185) (7,979) (1,193) (3,838) (459) (581)
Amount.................... $ (505) $ (996) $(44,014) $ (6,160) $ (20,359) $ (2,325) $(3,212)
------- ------- -------- -------- --------- -------- -------
Net change:
Shares.................... 4,549 3,922 85,609 40,931 10,017 29,054 7,958
Amount.................... $30,380 $21,011 $482,498 $232,137 $ 54,117 $156,680 $45,641
------- ------- -------- -------- --------- -------- -------
Shares end of period:
Shares.................... 4,549 3,922 85,609 40,931 10,017 29,054 7,958
Amount.................... $30,380 $21,011 $482,498 $232,137 $ 54,117 $156,680 $45,641
======= ======= ======== ======== ========= ======== =======
</TABLE>
F-10
<PAGE> 20
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED BALANCE SHEETS
AS OF JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
-------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair
value..................................................... $1,099.2 $1,044.2
Mortgage loans on real estate............................... 155.5 120.1
Policy loans................................................ 54.5 52.1
Real estate to be disposed of............................... 1.2 0.0
Real estate held for investment............................. 6.9 8.3
Other invested assets....................................... 2.6 4.7
-------- --------
1,319.9 1,229.4
-------- --------
Cash and cash equivalents................................... 47.9 133.4
Accrued investment income................................... 20.5 19.5
Amounts due from reinsurers................................. 23.8 24.4
Deferred policy acquisition costs........................... 356.7 318.6
Other assets................................................ 18.1 15.3
Separate account assets..................................... 4,337.0 4,148.8
-------- --------
Total assets...................................... $6,123.9 $5,889.4
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 123.0 $ 112.0
Policyholders' account balances............................. 1,169.7 1,187.1
Other policyholders' liabilities............................ 49.5 56.9
Accounts payable and other liabilities...................... 78.2 67.9
Note payable to affiliate (Note 5).......................... 50.0 0.0
Current federal income taxes payable........................ 16.8 13.2
Deferred federal income taxes............................... 10.0 13.7
Separate account liabilities................................ 4,337.0 4,148.8
-------- --------
Total liabilities................................. 5,834.2 5,599.6
Commitments and contingencies (Note 4)
Common stock, $1.00 par value; 5,000,000 shares authorized,
2,500,000 issued and outstanding.......................... 2.5 2.5
Capital in excess of par.................................... 189.7 189.7
Retained earnings........................................... 99.0 89.6
Accumulated other comprehensive income...................... (1.5) 8.0
-------- --------
Total shareholder's equity........................ 289.7 289.8
-------- --------
Total liabilities and shareholder's equity........ $6,123.9 $5,889.4
======== ========
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-11
<PAGE> 21
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $38.8 $30.0
Premiums.................................................... 1.3 0.4
Net investment income....................................... 24.1 23.5
Net realized gains on investments........................... 1.0 2.0
Other income................................................ 1.5 2.2
----- -----
Total revenues.................................... 66.7 58.1
----- -----
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 10.2 8.4
Interest credited to policyholders' account balances........ 16.1 16.5
Amortization of deferred policy acquisition costs........... 10.0 11.8
Other operating costs and expenses.......................... 20.2 20.5
----- -----
Total benefits and expenses....................... 56.5 57.2
----- -----
Income before income taxes.................................. 10.2 0.9
Income tax expense.......................................... 3.5 0.3
----- -----
Net income.................................................. 6.7 0.6
Other comprehensive (loss) income, net...................... (6.0) 0.8
----- -----
Comprehensive income........................................ $ 0.7 $ 1.4
===== =====
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-12
<PAGE> 22
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $ 71.3 $ 59.8
Premiums.................................................... 2.3 0.5
Net investment income....................................... 48.3 47.8
Net realized gains on investments........................... 1.2 3.5
Other income................................................ 3.1 4.0
------ ------
Total revenues.................................... 126.2 115.6
------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 20.0 16.6
Interest credited to policyholders' account balances........ 32.6 33.5
Amortization of deferred policy acquisition costs........... 20.0 22.5
Other operating costs and expenses.......................... 39.2 36.2
------ ------
Total benefits and expenses....................... 111.8 108.8
------ ------
Income before income taxes.................................. 14.4 6.8
Income tax expense.......................................... 5.0 2.4
------ ------
Net income.................................................. 9.4 4.4
Other comprehensive (loss) income, net...................... (9.5) 0.5
------ ------
Comprehensive (loss) income................................. $ (0.1) $ 4.9
====== ======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-13
<PAGE> 23
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENT
OF CHANGES IN SHAREHOLDER'S EQUITY
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
ACCUMULATED
CAPITAL OTHER TOTAL
COMMON IN EXCESS RETAINED COMPREHENSIVE SHAREHOLDER'S
STOCK OF PAR EARNINGS INCOME EQUITY
------ --------- -------- ------------- -------------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1998................. $2.5 $189.7 $89.6 $ 8.0 $289.8
Comprehensive loss
Net income............................... 9.4 9.4
Other comprehensive loss:
Unrealized gains on investments, net
of unrealized losses,
reclassification adjustments, and
taxes............................... (9.5) (9.5)
------
Comprehensive loss......................... (0.1)
---- ------ ----- ----- ------
Balance, June 30, 1999..................... $2.5 $189.7 $99.0 $(1.5) $289.7
==== ====== ===== ===== ======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-14
<PAGE> 24
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------- -------
($ IN MILLIONS)
<S> <C> <C>
NET CASH USED IN OPERATING ACTIVITIES....................... $ (22.5) $ (1.1)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayment of:
Fixed maturity securities................................. 138.6 89.7
Mortgage loans on real estate............................. 12.0 10.3
Real estate............................................... 0.0 14.4
Other invested assets..................................... 3.7 0.8
Acquisitions of investments:
Fixed maturity securities................................. (229.0) (109.2)
Mortgage loans on real estate............................. (47.5) (13.5)
Real estate............................................... (0.3) (0.5)
Other invested assets..................................... (0.9) (0.3)
Policy loans, net......................................... (2.4) (2.8)
Other, net................................................ (0.2) 0.0
------- -------
Net cash used in investing activities....................... (126.0) (11.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of note payable.................................... 50.5 0.0
Repayments of debt.......................................... (0.5) 0.0
Receipts from annuity and universal life policies credited
to policyholders' account balances........................ 595.5 448.5
Return of policyholders' account balances on annuity and
universal life policies................................... (582.5) (456.3)
------- -------
Net cash provided by (used in) financing activities......... 63.0 (7.8)
------- -------
Net decrease in cash and cash equivalents................... (85.5) (20.0)
Cash and cash equivalents, beginning of period.............. 133.4 46.0
------- -------
Cash and cash equivalents, end of period.................... $ 47.9 $ 26.0
======= =======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-15
<PAGE> 25
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
1. ORGANIZATION AND DESCRIPTION OF BUSINESS
MONY Life Insurance Company of America (the "Company"), an Arizona stock
life insurance company, is a wholly-owned subsidiary of MONY Life Insurance
Company ("MONY Life"), a stock life insurance company. MONY Life is a
wholly-owned subsidiary of The MONY Group Inc. (the "MONY Group"), a Delaware
Corporation.
The Company's primary business is to provide asset accumulation and life
insurance products to business owners, growing families, and pre-retirees. The
Company's insurance and financial products are marketed and distributed directly
to individuals primarily through MONY Life's career agency sales force. These
products are sold in 49 states (not including New York), the District of
Columbia, the U.S. Virgin Islands and Puerto Rico.
2. BASIS OF PRESENTATION
The accompanying unaudited interim condensed financial statements are
prepared in conformity with generally accepted accounting principles ("GAAP")
which requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. In the opinion of
management, these statements include all adjustments which were normal recurring
adjustments necessary to present fairly the financial position, results of
operations and cash flows for the periods presented. These statements should be
read in conjunction with the financial statements of the Company for the year
ended December 31, 1998 in the Company's 1998 Report on Form 10-K. The results
of operations for the three-month and six-month periods ended June 30, 1999 are
not necessarily indicative of the results to be expected for the full year.
3. FEDERAL INCOME TAXES
Federal income taxes for interim periods have been computed using an
estimated annual effective tax rate. This rate is revised, if necessary, at the
end of each successive interim period to reflect the current estimate of the
annual effective tax rate.
4. COMMITMENTS AND CONTINGENCIES
In late 1995 and thereafter, a number of purported class actions were
commenced in various state and federal courts against MONY Life and the Company
("the Companies") alleging that the Companies engaged in deceptive sales
practices in connection with the sale of whole and/or universal life insurance
policies from the early 1980s to the mid 1990s. Although the claims asserted in
each case are not identical, they seek substantially the same relief under
essentially the same theories of recovery (i.e. breach of contract, fraud,
negligent misrepresentation, negligent supervision and training, breach of
fiduciary duty, unjust enrichment and/or violation of state insurance and/or
deceptive business practice laws). Plaintiffs in these cases (including the
Goshen case discussed below) seek primary equitable relief (e.g. reformation,
specific performance, mandatory injunctive relief prohibiting the Companies from
canceling policies for failure to make required premium payments, imposition of
a constructive trust and/or creation of a claims resolution facility to
adjudicate any individual issues remaining after resolution of all class-wide
issues) as opposed to compensatory damages, although they seek compensatory
damages in unspecified amounts. The Company has answered the complaints in each
action (except for one action being voluntarily held in abeyance), has denied
any wrongdoing, and has asserted numerous affirmative defenses.
On June 7, 1996, the New York State Supreme Court certified the Goshen
case, being the first of the aforementioned class actions filed, as a nationwide
class consisting of all persons or entities who have, or at the time of the
policy's termination had, an ownership interest in a whole or universal life
insurance policy issued by the Companies and sold on an alleged "vanishing
premium" basis during the period January 1, 1982 to December 31, 1995. On March
27, 1997, the Company filed a motion to dismiss or, alternatively, for summary
judgement on all counts of the complaint. All of the other putative class
actions (with one
F-16
<PAGE> 26
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS -- (CONTINUED)
exception discussed below) have been consolidated and transferred by the
Judicial Panel on Multidistrict Litigation to the United States District Court
for the District of Massachusetts, or are being voluntarily held in abeyance
pending the outcome of the Goshen case. The Massachusetts District Court in the
Multidistrict Litigation has entered an order essentially holding all of the
federal cases in abeyance pending the action of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted the Company's
motion for summary judgement and dismissed all claims filed in the Goshen case
against the Company on the merits. On March 18, 1999, the order by the New York
State Supreme Court was affirmed by the New York State Appellate Division, First
Department. On June 8, 1999, plaintiffs obtained leave from the New York State
Court of Appeals to appeal the Appellate Division decision. Briefs were filed in
October 1999, and oral argument before the Court of Appeals will take place on
October 14, 1999. All actions before the United States District Court for the
District of Massachusetts are still pending.
In addition, on or about February 25, 1999, a purported class action was
filed against the Company in Kentucky state court covering policyholders who
purchased individual universal life insurance policies from the Company after
January 1, 1988, claiming breach of contract and violations of the Kentucky
Consumer Protection Act. On March 26, 1999, the Company removed that action to
the United States District Court for the Eastern District of Kentucky, requested
the Judicial Panel on multidistrict litigation to transfer the action to the
multidistrict litigation in the District of Massachusetts and sought a stay of
further proceedings in the Kentucky District Court pending a determination on
multidistrict transfer. On April 19, 1999, the Judicial Panel entered a
conditional transfer order transferring the case to the Federal District Court
in Massachusetts. Plaintiffs have opposed the transfer, and oral argument on the
Company's transfer motion took place before the Judicial Panel on July 22, 1999.
On April 20, 1999, plaintiffs moved to remand the case to the Kentucky State
Court. the Company has opposed the motion. On June 18, 1999, the Federal
District Court denied the Company's motion for a stay and preliminary discovery
has been initiated in the case.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its businesses.
The claimants in certain of these actions and proceedings seek damages of
unspecified amounts.
While the outcome of such matters cannot be predicted with certainty, in
the opinion of management, any additional liability beyond that recorded in the
financial statements at June 30, 1999, resulting from the resolution of these
matters will not have a material adverse effect on the Company's financial
position or results of operations.
Insurance companies are subject to assessments up to statutory limits, by
state guaranty funds for losses of policyholders of insolvent insurance
companies. In the opinion of management, such assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
At June 30, 1999, the Company had the following commitments outstanding:
$10.8 million of private fixed maturity securities with an interest rate of
7.3%, $6.4 million for a variable rate commercial mortgage loan with an initial
interest rate of 7.2% and $9.1 million of fixed rate agricultural loans with
periodic interest rate reset dates. The initial interest rates on such
agricultural loans range from 7.3% to 8.3%.
5. NOTE PAYABLE TO AFFILIATE
On March 5, 1999, the Company borrowed $50.5 million from MONY Benefits
Management Corp. ("MBMC"), an affiliate, in exchange for a note payable in the
same amount. The note bears interest at 6.75% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
as of June 30, 1999 is $50.0 million.
F-17
<PAGE> 27
MONY LIFE INSURANCE COMPANY OF AMERICA
ADMINISTRATIVE OFFICES
1740 BROADWAY, NEW YORK, NY 10019
[THE MONY GROUP LOGO]
MONY LIFE INSURANCE COMPANY OF AMERICA AND MONY
SECURITIES CORPORATION ARE MEMBERS OF THE MONY GROUP
- --------------------------------------------------------------------------------
Form No. 14504 SL (11/1/99)
