<PAGE>
- -------------------------------------------------
Delaware Investments
- -------------------------------------------------
Premium Fund
- -------------------------------------------------
International
- -------------------------------------------------
Equity Series
- -------------------------------------------------
SEMI-ANNUAL REPORT
- -------------------------------------------------
JUNE 30, 1998
(899)
SA-MEDIE [6/98] 8/98
<PAGE>
July 10, 1998
Dear Policy Holder:
European stock markets surged during the first half of 1998, shaking off jitters
caused by economic turmoil along the Pacific Rim last winter. Asia sought to
remedy its ailing economies but investment capital bled from the Pacific Rim.
Cumulative Total Return Six Months Ended June 30, 1998
International Equity Series +12.41%
Morgan Stanley Europe Australia Far East Index +15.27%
Past performance does not guarantee future results. Performance quoted above is
at net asset value and assumes reinvestment of distributions.
By focusing on Europe's economic growth prospects, International Equity
Series provided a total return of +12.41% for the six months ended June 30,
1998. During the period, we invested in dividend paying stocks in established
markets that appeared to be selling below their fair market value.
Our consistent investment discipline led us to make the United Kingdom the
Series' largest country weighting at mid year. Stocks in the U.K. generally
offer higher dividend yields than stocks in many developed countries around the
world.
The U.K. has benefited from the Blair administration's move to make Britain's
central bank more independent, which appears to have increased investor
confidence. This past spring the U.K.'s stock market capitalization surpassed
that of Japan, making it the world's second largest market after the U.S.
Stocks in Germany and France also fared well. The two countries form the
nucleus of the European Economic Union and, together account for just over 20%
of International Equity Series' net assets. Both Germany and France have
benefited from reforms necessary for the introduction of a common currency - the
Euro - in 1999.
Markets along the Mediterranean performed exceptionally well for the six
months ended June 30. However, concerns about local inflation and individual
stock values led us to avoid certain markets in this region, notably Italy and
Portugal.
Asian stock markets languished for much of the period and International
Equity Series underweighted this region. We held several export-oriented
Japanese companies and some of these contributed to the Series' total return
during the first half of 1998.
We plan to continue to underweight most Asian countries for the remainder of
the year. However, we will pay close attention to the Japanese stock market to
be alert for any value-oriented opportunities that develop.
International investing requires a keen awareness of regional politics,
economics and management practices. With our thorough understanding of overseas
markets, International Equity Series offers a disciplined approach to prudent
global investing.
Sincerely,
/s/ Wayne A. Stork /s/ Jeffery J.Nick
- ---------------------- -----------------------------
Wayne A. Stork Jeffrey J. Nick
Chairman President and Chief Executive
1
<PAGE>
Delaware Group Premium Fund, Inc.-International Equity Series
Statement of Net Assets
June 30, 1998 (Unaudited)
Number Market
of Shares Value
(U.S.$)
COMMON STOCK - 94.78%
Australia - 10.86%
+Amcor 1,415,000 $6,183,003
CSR 1,904,966 5,486,517
FOSTER'S BREWING GROUP 2,827,051 6,639,584
+National Australia Bank 393,757 5,183,600
Orica 378,600 2,234,640
----------
25,727,344
----------
Belgium - 3.25%
ELECTRABEL S.A. 27,200 7,695,774
----------
7,695,774
----------
France - 9.77%
Alcatel Alsthom 38,015 7,721,045
Compagnie de Saint Gobain 25,299 4,679,203
Elf Aquitaine 36,583 5,130,517
Societe Generale 27,108 5,622,062
----------
23,152,827
----------
Germany - 11.51%
BAYER 134,600 6,931,007
Bayerische Vereinsbank 60,900 5,170,437
Continental 117,200 3,643,053
RHEINISCH WESTFAELISCHES
Elektric 121,000 7,160,951
Siemens 72,050 4,375,603
----------
27,281,051
----------
Hong Kong - 1.85%
Hong Kong Electric 810,000 2,509,359
Wharf Holdings 1,900,000 1,876,210
----------
4,385,569
----------
Japan - 13.64%
Amano 185,000 1,620,894
Eisai 287,000 3,898,726
Hitachi 888,000 5,776,179
+Kinki Coca-Cola Bottling 191,000 2,306,331
Koito Manufacturing 596,000 2,934,377
MATSUSHITA ELECTRIC INDUSTRIAL 435,000 6,972,254
Nichido Fire & Marine 783,000 4,080,175
West Japan Railway 1,309 4,732,457
----------
32,321,393
----------
Malaysia - 0.47%
Oriental Holdings Berhad 510,720 854,243
Sime Darby Berhad 380,000 263,451
----------
1,117,694
----------
<PAGE>
Number Market
of Shares Value
(U.S.$)
Netherlands - 5.72%
Elsevier 199,500 $3,004,857
Koninklijke Van Ommeren 60,100 2,518,111
Royal Dutch Petroleum 63,000 3,486,520
Unilever 57,440 4,548,419
-----------
13,557,907
-----------
New Zealand - 2.28%
Carter Holt Harvey Limited 1,187,800 1,033,372
*Telecom Corporation of
New Zealand 209,409 446,783
Telecom Corporation of
New Zealand 954,784 3,925,813
-----------
5,405,968
-----------
Singapore - 0.38%
Jardine Matheson Holdings 336,622 908,879
-----------
908,879
-----------
Spain - 6.96%
+Banco Central Hispanoamericano 203,749 6,398,684
+Iberdrola S.A. 197,800 3,209,032
+TELEFONICA DE ESPANA 148,909 6,878,846
-----------
16,486,562
-----------
United Kingdom - 28.09%
BASS 366,964 6,855,480
BG 617,647 3,574,916
Blue Circle Industry 688,236 3,868,685
BOOTS 433,200 7,204,099
British Airways 529,472 5,700,790
CABLE & WIRELESS 556,000 6,765,441
Centrica 700,000 1,185,114
GKN 504,000 6,380,700
Glaxo Wellcome 214,470 6,453,557
Great Universal Stores 323,000 4,258,929
Rio Tinto 412,100 4,643,271
Taylor Woodrow 1,365,000 4,576,408
Unigate 458,000 5,072,588
-----------
66,539,978
-----------
Total Common Stock
(cost $180,746,258) 224,580,946
-----------
- ---------
Top 10 stock holdings, representing 29.9% of net assets, are printed in bold
face.
2
<PAGE>
International Equity Series
Statement of Net Assets (Continued)
Number Market
of Shares Value
(U.S.$)
WARRANTS - 0.01%
Indonesia
*PT Bank Dagang Nasional 567,750 $269
------------
Total Warrants (cost $0) 269
------------
Principal
Amount
REPURCHASE AGREEMENTS - 4.90%
With Chase Manhattan 5.85% 7/01/98
(dated 6/30/98, collateralized by
$4,345,000 U.S. Treasury Notes
5.375% due 6/30/03, market value
$4,324,788) ................................ $4,239,000 4,239,000
REPURCHASE AGREEMENTS (Continued)
With J.P. Morgan Securities 5.75% 7/01/98
(dated 6/30/98, collateralized by
$135,000 U.S. Treasury Notes 5.50%
due 3/31/03, market value $137,030 and
$3,454,000 U.S. Treasury Notes 6.25%
due 2/15/03, market $3,629,301) ............. $3,685,000 $3,685,000
With PaineWebber 5.75% 7/01/98
(dated 6/30/98, collateralized by
$1,237,000 U.S. Treasury Notes 5.875%
due 1/31/99, market value $1,270,094
and $2,424,000 U.S. Treasury Notes
6.00% due 8/15/99, market value
$2,490,096) ................................. 3,685,000 3,685,000
-----------
Total Repurchase Agreements
(cost $11,609,000) .......................... 11,609,000
-----------
Total Market Value of Securities - 99.69% (cost $192,355,258)..... $236,190,215
Receivables And Other Assets Net of Liabilities - 0.31% ......... 728,434
------------
NET ASSETS APPLICABLE TO 14,085,200 Shares ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO $16.82 PER SHARE - 100.00%............ $236,918,649
============
Components oF Net Assets at June 30, 1998:
Common stock, $0.01 par value, 1,000,000,000 shares
authorized to the Fund with 50,000,000 shares allocated to
the Series ..................................................... $191,814,511
Undistributed net investment income** ........................... 2,854,072
Accumulated net realized loss on investments .................... (1,561,759)
Net unrealized appreciation of investments ...................... 43,811,825
------------
Total net assets ................................................ $236,918,649
============
- ----------
*Non-income producing security.
**Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the Internal
Revenue Code.
+Security is partially or fully on loan.
See accompanying notes
3
<PAGE>
Delaware Group Premium Fund, Inc.
Statement of Operations
Six Months Ended 6/30/98 (Unaudited)
International
Equity
Series
-------------
Investment Income:
Dividends ........................................ $3,822,537
Interest ......................................... 395,753
Foreign tax withheld ............................. (309,356)
-----------
3,908,934
-----------
Expenses:
Management fees .................................. 831,739
Accounting and administration .................... 57,249
Custodian fees ................................... 46,290
Professional fees ................................ 14,980
Reports and statements to shareholders ........... 10,200
Registration fees ................................ 5,800
Taxes (other than taxes on income) ............... 3,688
Dividend disbursing and transfer
agent fees and expenses ....................... 3,553
Directors' fees .................................. 1,824
Other ............................................ 2,306
-----------
977,629
Less expenses absorbed by Delaware
International Advisers Ltd. ................... (28,730)
-----------
Total Expenses ................................... 948,899
-----------
Net Investment Income 2,960,035
-----------
Net Realized and Unrealized
GAIN on Investments and
Foreign Currencies:
Net realized loss on:
Investment transactions ....................... (44,005)
Foreign currencies ............................ (59,400)
-----------
Net realized loss ................................ (103,405)
Net change in unrealized appreciation/depreciation
on investments and foreign currencies ......... 22,239,285
-----------
Net Realized and Unrealized
Gain on Investments and
Foreign Currencies ............................ 22,135,880
-----------
Net increase in net assets resulting
from operations ............................... $25,095,915
===========
See accompanying notes
4
<PAGE>
Delaware Group Premium Fund, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended 6/30/98 Year Ended
International 12/31/97
Equity International
Series Equity
(Unaudited) Series
-------------- -------------
<S> <C> <C>
Increase In Net Assets
From Operations:
Net investment income $2,960,035 $3,977,084
Net realized gain (loss) on investments
and foreign currencies (103,405) 2,577,473
Net change in unrealized appreciation/depreciation
on investments and foreign currencies 22,239,285 1,459,920
------------ ------------
Net increase in net assets
resulting from operations 25,095,915 8,014,477
------------ ------------
Distributions to Shareholders From:
Net investment income (7,202,615) (4,927,079)
Net realized gain on investment transactions -- --
------------ ------------
(7,202,615) (4,927,079)
------------ ------------
Capital Share Transactions:
Proceeds from shares sold 25,786,771 70,066,962
Net asset value of shares issued upon reinvestment
of dividends from net investment income and net
realized gain on investment transactions 7,202,615 4,927,079
------------ ------------
32,989,386 74,994,041
Cost of shares repurchased (12,827,298) (10,645,895)
------------ ------------
Increase in net assets derived
from capital share transactions 20,162,088 64,348,146
------------ ------------
Net Increase In Net Assets 38,055,388 67,435,544
------------ ------------
Net Assets:
Beginning of period 198,863,261 131,427,717
------------ ------------
End of period $236,918,649 $198,863,261
============ ============
</TABLE>
See accompanying notes
5
<PAGE>
Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
International Equity Series
------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
6/30/98(1) 1997 1996 1995 1994 1993
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $15.520 $15.110 $13.120 $11.840 $11.620 $10.030
Income from investment operations:
Net investment income(2) ......................... 0.199 0.359 0.557 0.419 0.220 0.052
Net realized and unrealized gain
on investments and foreign currencies ............ 1.666 0.596 1.966 1.191 0.080 1.548
-------- --------- -------- -------- ------- -------
Total from investment operations ................. 1.865 0.955 2.523 1.610 0.300 1.600
-------- --------- -------- -------- ------- -------
Less dividends and distributions:
Dividends from net investment income ............. (0.565) (0.545) (0.420) (0.240) (0.070) (0.010)
Distributions from net realized gain
on investment transactions ....................... none none (0.113) (0.090) (0.010) none
-------- --------- -------- -------- ------- -------
Total dividends and distributions ................ (0.565) (0.545) (0.533) (0.330) (0.080) (0.010)
-------- --------- -------- -------- ------- -------
Net asset value, end of period ...................... $16.820 $15.520 $15.110 $13.120 $11.840 $11.620
========= ========= ======= ======== ======= =======
Total return ........................................ 12.41% 6.60% 20.03% 13.98% 2.57% 15.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) .......... $236,919 $198,863 $131,428 $81,548 $57,649 $16,664
Ratio of expenses to average net assets .......... 0.86% 0.85% 0.80% 0.80% 0.80% 0.80%
Ratio of expenses to average net
assets prior to expense limitation ............... 0.89% 0.90% 0.91% 0.89% 1.01% 1.85%
Ratio of net investment income to
average net assets ............................... 2.69% 2.28% 4.71% 3.69% 2.63% 1.85%
Ratio of net investment income to
average net assets prior to expense limitation ... 2.66% 2.23% 4.60% 3.60% 2.42% 0.80%
Portfolio turnover ............................... 4% 7% 8% 19% 13% 9%
Average commission rate paid(3) .................. $0.0175 $0.0150 $0.0100 N/A N/A N/A
</TABLE>
- ----------
(1) Ratios have been annualized and total return has not been annualized.
(2) Per share information for the periods ended June 30, 1998 and December 31,
1997 was based on the average shares outstanding method.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
6
<PAGE>
Delaware Group Premium Fund, Inc.
Notes to Financial Statements
June 30, 1998 (Unaudited)
Delaware Group Premium Fund, Inc. (The "Fund"), is registered as a diversified
open-end investment company under the Investment Company Act of 1940, as
amended. The Fund is organized as a Maryland Corporation and offers 16 series:
the Trend Series, the DelCap Series, the Small Cap Value Series (formerly the
Value Series), the Social Awareness Series (formerly the Quantum Series), the
Devon Series, the Decatur Total Return Series, the REIT Series, the Delaware
Series, the Convertible Securities Series, the Emerging Markets Series, the
International Equity Series, the Global Bond Series, the Delchester Series, the
Strategic Income Series, the Capital Reserves Series, and the Cash Reserve
Series. These financial statements and the related notes pertain to the
International Equity Series (the "Series"). The shares of the Fund are sold only
to separate accounts of life insurance companies.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Series:
Security Valuation--Securities listed on an exchange are valued at the last
quoted sales price as of the close of the NYSE on the valuation date. Securities
not traded or securities not listed on an exchange are valued at the mean of the
last quoted bid and asked prices. Securities listed on a foreign exchange are
valued at the last quoted sales price before the Series is valued. Long-term
debt securities are valued by an independent pricing service and such prices are
believed to reflect the fair value of such securities. Money market instruments
having less than 60 days to maturity are valued at amortized cost which
approximates market value. Other securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of the Fund's Board of Directors.
Federal Income Taxes--The Series intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.
Repurchase Agreements--The Series may invest in a pooled cash account along with
other members of the Delaware Investments Family of Funds. The aggregate daily
balance of the pooled cash account is invested in repurchase agreements secured
by obligations of the U.S. government. The respective collateral is held by the
Series' custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is at least 100% collateralized. However,
in the event of default or bankruptcy by the counterparty to the agreement,
realization of the collateral may be subject to legal proceedings.
Foreign Currency Transactions--Transactions denominated in foreign currencies
are recorded at the current prevailing exchange rates. The value of all assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars at the exchange rate of such currencies against the U.S. dollar as of
3:00 PM EST. Transaction gains or losses resulting from changes in exchange
rates during the reporting period or upon settlement of the foreign currency
transaction are reported in operations for the current period. It is not
practical to isolate that portion of both realized and unrealized gains and
losses on investments in equity securities that result from fluctuations in
foreign currency exchange rates in the statement of operations. The Series does
isolate that portion of gains and losses on investments in debt securities which
are due to changes in the foreign exchange rate from that which are due to
changes in market prices of debt securities. The Series reports certain foreign
currency related transactions as components of realized gains for financial
reporting purposes, whereas such components are treated as ordinary income
(loss) for federal income tax purposes.
Other--Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Foreign dividends are also recorded on the
ex-dividend date or as soon after the ex-dividend date that the Series is aware
of such dividends, net of all non-rebatable tax withholdings. Original issue
discounts are accreted to interest income over the lives of the respective
securities. Withholding taxes on foreign dividends have been provided for in
accordance with the Series' understanding of the applicable country's tax rules
and rates.
7
<PAGE>
Notes to Financial Statements (Continued)
The International Equity Series will make payments from net income and net
realized gain on investment transactions, if any, once a year.
Certain Fund expenses are paid through "soft dollar" arrangements with brokers.
The amount of these expenses is less than 0.01% of the Series' average daily net
assets.
Use of Estimates--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, the Series
pays Delaware International Advisers Ltd. ("DIAL"), the investment manager of
the International Equity Series an annual fee which is calculated at the rate of
0.75% on the average daily net assets of the Series, less the fees paid to the
unaffiliated directors.
DIAL has elected to waive their fees and reimburse the Series to the extent that
annual operating expenses exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, exceed 0.95% of average daily net assets of the
Series through October 31, 1998. Total expenses absorbed by DIAL for the period
ended June 30, 1998 were $28,730.
The Series has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
Delaware Management Company ("DMC"), to serve as dividend disbursing agent,
transfer agent and accounting services agent for each Series.
The amounts expensed for the Series were as follows:
Dividend disbursing,
transfer agent fees Accounting
and other expenses fees
------------------ -----------
International Equity Series $3,553 $47,027
On June 30, 1998, the Series had payables to affiliates as follows:
<TABLE>
<CAPTION>
Other
Investment Dividend disbursing, expenses
Management transfer agent fees, payable
fee payable to accounting fees, and other to DMC
DIAL expenses payable to DSC and affiliates
-------------- -------------------------- ----------------
<S> <C> <C> <C>
International Equity Series $680,203 $7,500 $4,043
</TABLE>
Certain officers of DMC and DSC are officers, directors and/or employees of the
Fund. These officers, directors and employees are paid no compensation by the
Fund.
8
<PAGE>
Notes to Financial Statements (Continued)
3. Investments
During the period ended June 30, 1998, the Series made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments as follows:
Purchases Sales
----------- --------
International Equity Series $20,322,373 $4,302,626
At June 30, 1998, the aggregate cost of securities and unrealized appreciation
(depreciation) for federal income tax purposes for the Series was as follows:
<TABLE>
<CAPTION>
Aggregate Aggregate
Cost of unrealized unrealized Net unrealized
Investments appreciation depreciation appreciation
------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C>
International Equity Series $192,355,258 $61,361,032 ($17,526,075) $43,834,957
</TABLE>
For federal income tax purposes, the Series had accumulated capital losses at
December 31, 1997 as follows:
Year of Year of
Expiration Expiration
2004 2005
----------- -----------
International Equity Series $522,833 $971,541
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
Shares issued upon
reinvestment of dividends
from net investment Shares Net
Shares sold income repurchased increase
----------- ----------------------------- ------------- -----------
<S> <C> <C> <C> <C>
Period ended June 30, 1998:
International Equity Series 1,575,397 474,168 (780,259) 1,269,306
Year ended December 31, 1997:
International Equity Series 4,451,284 342,396 (674,626) 4,119,054
</TABLE>
9
<PAGE>
Notes to Financial Statements (Continued)
5. Foreign Exchange Contracts
A Series will generally enter into forward foreign currency contracts as a way
of managing foreign exchange rate risk. A Series may enter into these contracts
to fix the U.S. dollar value of a security that it has agreed to buy or sell for
the period between the date the trade was entered into and the date the security
is delivered and paid for. A Series may also use these contracts to hedge the
U.S. dollar value of securities it already owns denominated in foreign
currencies.
Forward foreign currency contracts are valued at the mean between the bid and
asked prices of the contracts and are marked-to-market daily. Interpolated
values are derived when the settlement date of the contract is an interim date
for which quotations are not available. The change in market value is recorded
as an unrealized gain or loss. When the contract is closed, a realized gain or
loss equal to the difference between the value of the contract at the time it
was opened and the value at the time it was closed is recorded.
The use of forward foreign currency contracts does not eliminate fluctuations in
the underlying prices of the securities, but it does establish a rate of
exchange that can be achieved in the future. Although forward foreign currency
contracts limit the risk of loss due to a decline in the value of the hedged
currency, they also limit any potential gain that might result should the value
of the currency increase. In addition, a Series could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts.
6. Credit and Market Risk
Some countries in which the International Equity Series may invest require
governmental approval for the repatriation of investment income, capital or the
proceeds of sales of securities by foreign investors. In addition, if there is a
deterioration in a country's balance of payments or for other reasons, a country
may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Series
may be inhibited. In addition, a significant proportion of the aggregate market
value of equity securities listed on the major securities exchanges in emerging
markets are held by a smaller number of investors. This may limit the number of
shares available for acquisition or disposition of the Series.
The Series may invest up to 10% of its total assets in illiquid securities which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of some of these securities may adversely affect the Series' ability
to dispose of such securities in a timely manner and at a fair price when it is
necessary to liquidate such securities.
7. Securities Lending
Securities on loan are required at all times to be secured by collateral at
least equal to 102% of the market value of securities issued in the U.S. and
105% of the market value of securities issued outside of the U.S. However, in
the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings. In the event that the borrower fails to return loaned securities,
and cash collateral being maintained by the borrower is insufficient to cover
the value of loaned securities and provided such collateral insufficiency is not
the result of investment losses, the lending agent has agreed to pay the amount
of the shortfall to the Series or, at the option of the lending agent, replace
the loaned securities. The market value of securities on loan to brokers and the
related collateral received at June 30, 1998 for the Series was as follows:
Market Value of
Securities on Loan Collateral
-------------------- ------------
International Equity Series $21,751,673 $27,099,982
10
