<PAGE>
ANNUAL REPORT
. PACIFIC SELECT SEPARATE ACCOUNT OF PACIFIC MUTUAL LIFE INSURANCE COMPANY
[LOGO of PACIFIC SELECT]
<PAGE>
Dear Pacific Select Policy Owner:
We are pleased to share with you the 1996 Annual Report of the Pacific Select
Separate Account ("Separate Account") of Pacific Mutual Life Insurance Company
("Pacific Mutual").
The Separate Account supports your Pacific Select Flexible Premium Variable
Universal Life Insurance Policy ("the Policy") from Pacific Mutual. The
Separate Account is divided into subaccounts, called Variable Accounts. A fixed
option is also available.
The following indicates the Accumulated Values and Cash Surrender Values as of
December 31, 1996, assuming a hypothetical Policy was purchased (1) on the date
each Variable Account began operations, and (2) on January 2, 1996. Also
assumed is that 100% of the premium payment was allocated to such Variable
Account. The Policy is based on an insured male, nonsmoker, age 55, single
premium payment of $50,000 (also Guideline Single Premium), and a Level and
Initial Death Benefit of $134,671:
<TABLE>
<CAPTION>
Money High Yield Managed Government
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
1/07/88* 7/14/88* 2/22/88* 7/01/88* 2/18/88*
---------- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
(1) Policy purchased on date Variable Account began operations
AV** .................... $63,914.92 $104,108.30 $89,684.15 $85,736.84 $155,780.22
CSV*** .................. 63,114.92 103,108.30 88,850.82 84,736.84 154,946.88
(2) Policy purchased on 1/2/96
AV** .................... 51,594.13 54,649.87 51,187.11 50,529.84 60,689.03
CSV*** .................. 47,594.13 50,649.87 47,187.11 46,529.84 56,689.03
</TABLE>
<TABLE>
<CAPTION>
Growth Equity Multi- Equity Inter-
LT Income Strategy Index national
Variable Variable Variable Variable Variable
Account Account Account Account Account
1/04/94* 3/21/88* 2/22/88* 2/12/91* 2/18/88*
---------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
(1) Policy purchased on date Variable Account began operations
AV** .................... $86,540.58 $123,494.86 $104,655.36 $102,691.30 $88,414.61
CSV*** .................. 83,340.58 122,628.19 103,822.02 100,657.97 87,581.28
(2) Policy purchased on 1/2/96
AV** 57,971.28 58,150.02 55,005.82 59,727.62 59,089.00
CSV*** 53,971.28 54,150.02 51,005.82 55,727.62 55,089.00
- --------------------
</TABLE>
*Date Variable Account began operations. The Aggressive Equity and Emerging
Markets Variable Accounts had not begun operations as of December 31, 1996.
**Accumulated Value: Includes deductions for all policy charges, including cost
of insurance, except surrender charges. Cost of insurance rates vary
depending on age and smoking status.
***Cash Surrender Value: Includes deductions for all policy charges, including
surrender charges that would have been deducted if the policy had been
surrendered on December 31, 1996. Surrender charges vary by policy.
* * * *
If you have any questions, please contact your Registered Representative, or
call Pacific Mutual's Marketing Department at our toll free number 1-800-800-
7681.
Sincerely,
/s/ THOMAS C. SUTTON
- -------------------------------------
Thomas C. Sutton
Chairman and Chief Executive Officer
Pacific Mutual Life Insurance Company
B-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Pacific Mutual Life Insurance Company
We have audited the accompanying statement of assets and liabilities of the
Pacific Select Separate Account (comprised of the Money Market, High Yield Bond,
Managed Bond, Government Securities, Growth, Growth LT, Equity Income, Multi-
Strategy, Equity Index, and International Variable Accounts) as of December 31,
1996 and the related statement of operations for the year then ended and
statement of changes in net assets for each of the two years in the period then
ended. These financial statements are the responsibility of the Separate
Account's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective variable
accounts constituting the Pacific Select Separate Account as of December 31,
1996 and the results of their operations for the year then ended and the changes
in their net assets for each of the two years then ended, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Costa Mesa, California
February 14, 1997
B-2
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF ASSETS & LIABILITIES
December 31, 1996
(In thousands)
<TABLE>
<CAPTION>
High
Money Yield Managed Government Growth Equity
Market Bond Bond Securities Growth LT Income
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Money Market Portfolio (21 Shares; cost $209).............$ 209
High Yield Bond Portfolio (563 shares; cost $5,166)....... $ 5,593
Managed Bond Portfolio (49 shares; cost $514)............. $ 525
Government Securities Portfolio (31 shares; cost $336).... $ 325
Growth Portfolio (253 shares; cost $3,972)................ $ 5,420
Growth LT Portfolio (75 shares; cost $975)................ $ 1,235
Equity Income Portfolio (139 shares; cost $2,135)......... $ 2,850
Multi-Strategy Portfolio (65 shares; cost $777)...........
Equity Index Portfolio (115 shares; cost $2,083)..........
International Portfolio (257 shares; cost $3,374).........
------- ------- ------- ------- ------- ------- -------
TOTAL ASSETS................................................ 209 5,593 525 325 5,420 1,235 2,850
------- ------- ------- ------- ------- ------- -------
LIABILITIES
Payables:
Mortality and expense risk fee............................ 10 1 9 2 5
------- ------- ------- ------- ------- ------- -------
TOTAL LIABILITIES........................................... 10 1 9 2 5
------- ------- ------- ------- ------- ------- -------
NET ASSETS..................................................$ 209 $ 5,583 $ 524 $ 325 $ 5,411 $ 1,233 $ 2,845
======= ======= ======= ======= ======= ======= =======
<CAPTION>
Multi- Equity Inter-
Strategy Index national
Variable Variable Variable
Account Account Account
------- ------- -------
<S> <C> <C> <C>
ASSETS
Investments:
Money Market Portfolio (21 Shares; cost $209)....................
High Yield Bond Portfolio (563 shares; cost $5,166)..............
Managed Bond Portfolio (49 shares; cost $514)....................
Government Securities Portfolio (31 shares; cost $336)...........
Growth Portfolio (253 shares; cost $3,972).......................
Growth LT Portfolio (75 shares; cost $975).......................
Equity Income Portfolio (139 shares; cost $2,135)................
Multi-Strategy Portfolio (65 shares; cost $777)..................$ 954
Equity Index Portfolio (115 shares; cost $2,083)................. $ 2,345
International Portfolio (257 shares; cost $3,374)................ $ 3,954
------- ------- -------
TOTAL ASSETS....................................................... 954 2,345 3,954
------- ------- -------
LIABILITIES
Payables:
Mortality and expense risk fee................................... 2 4 7
------- ------- -------
TOTAL LIABILITIES.................................................. 2 4 7
------- ------- -------
NET ASSETS.........................................................$ 952 $ 2,341 $ 3,947
======= ======= =======
</TABLE>
See Notes to Financial Statements.
B-3
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
(In thousands)
<TABLE>
<CAPTION>
High
Money Yield Managed Government Growth Equity Multi- Equity Inter-
Market Bond Bond Securities Growth LT Income Strategy Index national
Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account Account
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends....................... $ 28 $ 429 $ 36 $ 24 $ 547 $ 10 $ 159 $ 70 $ 39 $ 71
EXPENSES
Mortality and expense risk fee.. 5 33 3 2 45 8 18 6 10 20
-------- -------- -------- --------- ------- -------- ------- ------- ------- -------
NET INVESTMENT INCOME............. 23 396 33 22 502 2 141 64 29 51
-------- -------- -------- --------- ------- -------- ------- ------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from
security transactions.......... (1) 5 3 (3) 860 32 49 6 24 31
Net unrealized appreciation
(depreciation) on investments.. 7 103 (18) (13) 231 145 267 31 188 465
-------- ------- -------- --------- ------- -------- ------- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS........... 6 108 (15) (16) 1,091 177 316 37 212 496
-------- ------- -------- --------- ------- -------- ------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....... $ 29 $ 504 $ 18 $ 6 $ 1,593 $ 179 $ 457 $ 101 $ 241 $ 547
======== ======= ======== ========= ======= ======== ======= ======= ======= =======
</TABLE>
See Notes to Financial Statements.
B-4
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1996
(In thousands)
<TABLE>
<CAPTION>
High
Money Yield Managed Government
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.................................................. $ 23 $ 396 $ 33 $ 22 $ 502
Net realized gain (loss) from security transactions.................... (1) 5 3 (3) 860
Net unrealized appreciation (depreciation) on investments.............. 7 103 (18) (13) 231
-------- -------- -------- -------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.............................................. 29 504 18 6 1,593
-------- -------- -------- -------- ---------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers of net premiums.............................................. 2
Transfers--policy charges and deductions............................... (8) (39) (5) (5) (108)
Transfers in (from other variable accounts)............................ 11,217 5,077 79 12 4,076
Transfers out (to other variable accounts)............................. (12,403) (3,676) (42) (20) (7,965)
Transfers--other....................................................... (13) (3) (29) (141)
-------- -------- -------- -------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS....................................... (1,207) 1,359 32 (42) (4,136)
-------- -------- -------- -------- ---------
NET INCREASE (DECREASE) IN NET ASSETS.................................... (1,178) 1,863 50 (36) (2,543)
NET ASSETS
Beginning of year...................................................... 1,387 3,720 474 361 7,954
-------- -------- -------- -------- ---------
End of year............................................................ $ 209 $ 5,583 $ 524 $ 325 $ 5,411
======== ======== ======== ======== =========
<CAPTION>
Growth Equity Multi- Equity Inter-
LT Income Strategy Index national
Variable Variable Variable Variable Variable
Account Account Account Account Account
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.................................................. $ 2 $ 141 $ 64 $ 29 $ 51
Net realized gain (loss) from security transactions.................... 32 49 6 24 31
Net unrealized appreciation (depreciation) on investments.............. 145 267 31 188 465
-------- -------- -------- -------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.............................................. 179 457 101 241 547
--------- --------- --------- --------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers of net premiums.............................................. 2
Transfers--policy charges and deductions............................... (12) (80) (16) (26) (52)
Transfers in (from other variable accounts)............................ 496 413 9 1,899 2,052
Transfers out (to other variable accounts)............................. (332) (241) (2) (17) (90)
Transfers--other....................................................... (16) (67) 2 (20) (81)
-------- -------- -------- -------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS....................................... 136 27 (7) 1,836 1,829
-------- -------- -------- -------- ---------
NET INCREASE (DECREASE) IN NET ASSETS.................................... 315 484 94 2,077 2,376
NET ASSETS
Beginning of year...................................................... 918 2,361 858 264 1,571
-------- -------- -------- -------- ---------
End of year............................................................ $ 1,233 $ 2,845 $ 952 $ 2,341 $ 3,947
======== ======== ======== ======== =========
</TABLE>
See Notes to Financial Statements
B-5
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
(In thousands)
<TABLE>
<CAPTION>
High
Money Yield Managed Government
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income.......................................... $ 67 $ 254 $ 24 $ 17 $ 14
Net realized gain (loss) from security transactions............ (2) 15 1 (3) 155
Net unrealized appreciation on investments..................... 3 304 36 42 1,508
-------- ------- ------ ------ -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................................... 68 573 61 56 1,677
-------- ------- ------ ------ -------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions *.................... (26) (41) 2 (5) (109)
Transfers in (from other variable accounts)................... 35 47 330 25 1,201
Transfers out (to other variable accounts).................... (1,065) (34) (22) (16) (1,098)
Transfers--other *............................................ (27) (27) (9) (24) (110)
-------- ------- ------ ------ -------
INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS.............................. (1,083) (55) 301 (20) (116)
-------- ------- ------ ------ -------
NET INCREASE (DECREASE) IN NET ASSETS.......................... (1,015) 518 362 36 1,561
NET ASSETS
Beginning of year............................................. 2,402 3,202 112 325 6,393
-------- ------- ------ ------ -------
End of year................................................... $ 1,387 $ 3,720 $ 474 $ 361 $ 7,954
======== ======= ====== ====== =======
</TABLE>
<TABLE>
<CAPTION>
Growth Equity Multi- Equity Inter-
LT Income Strategy Index national
Variable Variable Variable Variable Variable
Account Account Account Account Account
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 59 $ 20 $ 21 $ 4 $ 20
Net realized gain (loss) from security transactions............. 15 136 32 24 25
Net unrealized appreciation on investments...................... 112 451 115 52 111
------ -------- ------ ------ --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...................................... 186 607 168 80 156
------ -------- ------ ------ --------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions *..................... (7) (50) (15) (16) (45)
Transfers in (from other variable accounts).................... 688 498 15 473
Transfers out (to other variable accounts)..................... (32) (927) (9) (70)
Transfers--other *............................................. (13) (105) (39) (88)
------ -------- ------ ------ --------
INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS............................... 636 (584) 0 (64) 270
------ -------- ------ ------ --------
NET INCREASE (DECREASE) IN NET ASSETS........................... 822 23 168 16 426
NET ASSETS
Beginning of year.............................................. 96 2,338 690 248 1,145
------ -------- ------ ------ --------
End of year.................................................... $ 918 $ 2,361 $ 858 $ 264 $ 1,571
====== ======== ====== ====== ========
</TABLE>
* Prior year amounts have been reclassified to
conform with current year presentation.
See Notes to Financial Statements.
B-6
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES
The Pacific Select Separate Account (the "Separate Account") is
registered as a unit investment trust under the Investment Company Act of
1940, as amended, and during 1996 was comprised of twelve subaccounts called
Variable Accounts: the Money Market Variable Account, the High Yield Bond
Variable Account, the Managed Bond Variable Account, the Government
Securities Variable Account, the Growth Variable Account, the Aggressive
Equity Variable Account, the Growth LT Variable Account, the Equity Income
Variable Account, the Multi-Strategy Variable Account, the Equity Index
Variable Account, the International Variable Account, and the Emerging
Markets Variable Account. The assets in each Variable Account are invested in
shares of the corresponding portfolios of Pacific Select Fund (the "Fund"),
each of which pursues different investment objectives and policies. The
financial statements of the Fund, including the portfolios of investments,
are included elsewhere in this report and should be read in conjunction with
the separate Account's financial statements.
The Separate Account has organized and registered with the Securities
and Exchange Commission two new Variable Accounts, the Aggressive Equity
Variable Account and the Emerging Markets Variable Account, under the
Investment Company Act of 1940. There was no operational activity through
December 31, 1996 in both Variable Accounts.
The Separate Account was established by Pacific Mutual Life Insurance
Company ("Pacific Mutual") on November 20, 1986 and commenced operations on
January 7, 1988. Under applicable insurance law, the assets and liabilities
of the Separate Account are clearly identified and distinguished from the
other assets and liabilities of Pacific Mutual. The assets of the Separate
Account will not be charged with any liabilities arising out of any other
business conducted by Pacific Mutual, but the obligations of the Separate
Account, including benefits related to variable life insurance, are
obligations of Pacific Mutual.
The Separate Account held by Pacific Mutual represents funds from
individual flexible premium variable life policies. The assets of these
accounts are carried at market value.
The preparation of the accompanying financial statements requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
A. Valuation of Investments
Investments in shares of the Fund are valued at the reported net asset
values of the respective portfolios. Valuation of securities held by the
Fund is discussed in the notes to their financial statements.
B. Security Transactions
Transactions are recorded on the trade date. Realized gains and losses
on sales of investments are determined on the basis of identified cost.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal
income tax return of Pacific Mutual, which is taxed as a life insurance
company under the provisions of the Tax Reform Act of 1986. Under current
tax law, no Federal income taxes are expected to be paid by Pacific Mutual
with respect to the operations of the Separate Account.
2. DIVIDENDS
During 1996, the Fund has declared dividends for each portfolio except
for the Emerging Markets Portfolio. The amounts accrued by the Separate
Account for its share of the dividends were reinvested in additional full
and fractional shares of each related portfolio.
3. CHARGES AND EXPENSES
Pacific Mutual charges the Separate Account daily for mortality and
expense risks assumed with respect to variable life insurance policies funded
by the Separate Account at an annual rate of 0.70% of the average daily net
assets of each Variable Account. Under the policies, Pacific Mutual makes
certain deductions from the net assets of each Variable Account for sales
load, administrative expenses, state premium taxes, cost of insurance and
charges for optional benefits. The operating expenses of the Separate Account
are paid by Pacific Mutual.
B-7
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
4. RELATED PARTY AGREEMENT
Pacific Mutual Distributors, Inc., a wholly-owned subsidiary of Pacific
Mutual, is the principal underwriter of variable life insurance policies funded
by interests in the Separate Account and is compensated by Pacific Mutual.
5. SELECTED ACCUMULATION UNIT** INFORMATION
Selected accumulation unit information for the year ended December 31, 1996
were as follows:
<TABLE>
<CAPTION>
High
Money Yield Managed Government
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT
VALUE:
Beginning $ 14.45 $ 21.16 $ 19.64 $ 18.89 $ 27.60
======= ======= ======= ======= =======
Ending $ 15.08 $ 23.39 $ 20.34 $ 19.31 $ 33.90
======= ======= ======= ======= =======
Number of Units
Outstanding at
End of Year 13,843 238,658 25,744 16,830 159,620
</TABLE>
<TABLE>
<CAPTION>
Growth Equity Multi- Equity Inter-
LT Income Strategy Index national
Variable Variable Variable Variable Variable
Account Account Account Account Account
-------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT
VALUE:
Beginning $ 15.28 $ 23.16 $ 21.06 $ 18.26 $ 16.84
======= ======== ======= ======== ========
Ending $ 17.89 $ 27.47 $ 23.54 $ 22.19 $ 20.39
======= ======== ======= ======== ========
Number of Units
Outstanding at
End of Year 68,915 103,533 40,429 105,503 193,550
</TABLE>
- ----------
** Accumulation Unit: unit of measure used to calculate the value of a Contract
Owner's interest in a Variable Account during the Accumulation Period.
B-8
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
6. POLICY OWNERS' COST OF INVESTMENT IN THE FUND SHARES
The investment in the Fund shares are carried at identified cost, which
represents the amount available for investment (including reinvested
distributions of net investment income and realized gains) in such shares after
deduction of mortality and expense risk (M&E) charges. Total cost and market
value of total Policy Owners' investments in the Fund as of December 31, 1996
were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Money High Yield Managed Government
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Total cost of investments at beginning of year $ 1,395 $ 3,398 $ 445 $ 358 $ 6,741
Add: Total proceeds from sales of
units net of M&E charges 3 1,412 77 2 142
Reinvested distributions from the Fund:
(a) Net investment income 28 391 27 16 26
(b) Net realized gain 38 9 8 521
--------- --------- -------- -------- --------
Sub-Total 1,426 5,239 558 384 7,430
Less: Cost of investments disposed during the year 1,217 73 44 48 3,458
--------- --------- -------- -------- --------
Total cost of investments at end of year 209 5,166 514 336 3,972
Add: Unrealized appreciation (depreciation) 427 11 (11) 1,448
--------- --------- -------- -------- --------
Total market value of investments at end of year $ 209 $ 5,593 $ 525 $ 325 $ 5,420
========= ========= ======== ======== ========
<CAPTION>
Growth Equity Multi- Equity Inter-
LT Income Strategy Index national
Variable Variable Variable Variable Variable
Account Account Account Account Account
------- ------- ------- ------- -------
Total cost of investments at beginning of year $ 803 $ 1, 915 $ 713 $ 189 $ 1,458
Add: Total proceeds from sales of units net
of M&E charges 243 307 10 1,893 2,019
Reinvested distributions from the Fund:
(a) Net investment income 10 34 26 32 71
(b) Net realized gain 125 44 7
--------- --------- --------- --------- ---------
Sub-Total 1,056 2,381 793 2,121 3,548
Less: Cost of investments disposed during the year 81 246 16 38 174
--------- --------- --------- --------- ---------
Total cost of investments at end of year 975 2,135 777 2,083 3,374
Add: Unrealized appreciation 260 715 177 262 580
--------- --------- --------- --------- ---------
Total market value of investments at end of year $ 1,235 $ 2,850 $ 954 $ 2,345 $ 3,954
========= ========= ========= ========= =========
</TABLE>
B-9
