<PAGE>
June 30, 2000 . Pacific Select Fund
. Pacific Select Exec
Separate Account of
Pacific Life Insurance Company
Semi-Annual
Reports
PACIFIC SELECT
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PACIFIC SELECT FUND
<S> <C>
Chairman's Letter................................................... A-1
Performance Discussion.............................................. A-2
Financial Statements:
Statements of Assets and Liabilities.............................. B-1
Statements of Operations.......................................... B-4
Statements of Changes in Net Assets............................... B-7
Financial Highlights................................................ C-1
Schedules of Investments............................................ D-1
Notes to Financial Statements....................................... E-1
Special Meeting of Shareholders..................................... F-1
PACIFIC SELECT EXEC SEPARATE ACCOUNT
Financial Statements:
Statement of Assets and Liabilities.............................. G-1
Statement of Operations........................................... G-4
Statement of Changes in Net Assets................................ G-7
Notes to Financial Statements....................................... H-1
</TABLE>
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Diversified Small-Cap International Bond and I-Net Multi-
Equity Markets Research Equity Large-Cap Income Equity Tollkeeper Strategy
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account (1) Account Account Account Account Account
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Aggressive Equity
Portfolio.............. $36,952
Emerging Markets
Portfolio.............. $26,086
Diversified Research
Portfolio.............. $2,446
Small-Cap Equity
Portfolio (1).......... $319,851
International Large-Cap
Portfolio.............. $10,891
Bond and Income
Portfolio.............. $8,615
Equity Portfolio....... $70,128
I-Net Tollkeeper
Portfolio.............. $2,935
Multi-Strategy
Portfolio.............. $154,720
Receivables:
Due from Pacific Life
Insurance Company...... 16 8 5 80 98 15 120 44 26
-----------------------------------------------------------------------------------------------
Total Assets............ 36,968 26,094 2,451 319,931 10,989 8,630 70,248 2,979 154,746
-----------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Fund shares purchased.. 16 8 5 80 98 15 120 44 26
-----------------------------------------------------------------------------------------------
Total Liabilities....... 16 8 5 80 98 15 120 44 26
-----------------------------------------------------------------------------------------------
NET ASSETS.............. $36,952 $26,086 $2,446 $319,851 $10,891 $8,615 $70,128 $2,935 $154,720
-----------------------------------------------------------------------------------------------
Shares Owned in each
Portfolio............... 2,883 2,715 220 11,056 1,162 763 2,013 288 9,912
-----------------------------------------------------------------------------------------------
Cost of Investments..... $39,285 $26,034 $2,347 $291,418 $10,811 $9,166 $67,462 $2,823 $151,138
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Formerly named Growth Portfolio and Growth Variable Account.
See Notes to Financial Statements
G-1
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Mid-Cap Equity Small-Cap International Government Managed
Income Growth LT Value Index Index REIT Value Securities Bond
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account (1) Account Account
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Equity Income
Portfolio.............. $229,327
Growth LT Portfolio.... $560,268
Mid-Cap Value
Portfolio.............. $10,728
Equity Index Portfolio. $460,861
Small-Cap Index
Portfolio.............. $12,718
REIT Portfolio......... $7,239
International Value
Portfolio (1).......... $223,696
Government Securities
Portfolio.............. $22,505
Managed Bond Portfolio. $128,349
Receivables:
Due from Pacific Life
Insurance Company...... 127 419 9 305 11 88 157
Fund shares redeemed... 3 13
-----------------------------------------------------------------------------------------
Total Assets............ 229,454 560,687 10,737 461,166 12,729 7,242 223,784 22,518 128,506
-----------------------------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 3 13
Fund shares purchased.. 127 419 9 305 11 88 157
-----------------------------------------------------------------------------------------
Total Liabilities....... 127 419 9 305 11 3 88 13 157
-----------------------------------------------------------------------------------------
NET ASSETS.............. $229,327 $560,268 $10,728 $460,861 $12,718 $7,239 $223,696 $22,505 $128,349
-----------------------------------------------------------------------------------------
Shares Owned in each
Portfolio............... 9,200 14,360 964 12,262 1,066 656 12,804 2,196 12,275
-----------------------------------------------------------------------------------------
Cost of Investments..... $217,993 $430,987 $10,232 $349,701 $12,430 $7,124 $211,826 $23,047 $132,595
-----------------------------------------------------------------------------------------
</TABLE>
(1) Formerly named International Portfolio and International Variable Account.
See Notes to Financial Statements
G-2
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Money High Yield Large-Cap
Market Bond Value Variable Variable Variable Variable
Variable Variable Variable Account Account Account Account
Account Account Account I II III IV
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Money Market Portfolio. $181,666
High Yield Bond
Portfolio.............. $48,250
Large-Cap Value
Portfolio.............. $12,492
Brandes International
Equity Portfolio....... $16,923
Turner Core Growth
Portfolio.............. $10,940
Frontier Capital
Appreciation Portfolio. $11,930
Clifton Enhanced U.S.
Equity Portfolio (1)... $6,325
Receivables:
Due from Pacific Life
Insurance Company...... 950 39 67 18 4
Fund shares redeemed... 42 21
-----------------------------------------------------------------
Total Assets............ 182,616 48,289 12,559 16,965 10,961 11,948 6,329
-----------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 42 21
Fund shares purchased.. 950 39 67 18 4
-----------------------------------------------------------------
Total Liabilities....... 950 39 67 42 21 18 4
-----------------------------------------------------------------
NET ASSETS.............. $181,666 $48,250 $12,492 $16,923 $10,940 $11,930 $6,325
-----------------------------------------------------------------
Shares Owned in each
Portfolio............... 18,012 5,811 1,041 1,060 459 504 318
-----------------------------------------------------------------
Cost of Investments..... $182,099 $51,123 $12,113 $14,876 $10,737 $11,804 $6,157
-----------------------------------------------------------------
</TABLE>
(1) Formerly named Enhanced U.S. Equity Portfolio.
See Notes to Financial Statements
G-3
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Diversified Small-Cap International Bond and I-Net Multi-
Equity Markets Research Equity Large-Cap Income Equity Tollkeeper Strategy
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account (1) Account (2) Account (1) Account Account Account (1) Account
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............. $1,226 $13 $20,820 $237 $4,305 $13,455
-------------------------------------------------------------------------------------------------
Net Investment Income.. 1,226 13 20,820 237 4,305 13,455
-------------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions.......... 2,654 2,775 $1 28,397 ($62) (251) 4,031 1,202
Net unrealized
appreciation
(depreciation)
on investments........ (7,023) (5,011) 99 (35,442) 80 387 (8,199) $112 (13,382)
-------------------------------------------------------------------------------------------------
Net Realized and
Unrealized Gain
(Loss) on Investments.. (4,369) (2,236) 100 (7,045) 18 136 (4,168) 112 (12,180)
-------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ ($3,143) ($2,223) $100 $13,775 $18 $373 $137 $112 $1,275
-------------------------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
(2) Formerly named Growth Variable Account.
See Notes to Financial Statements
G-4
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Mid-Cap Equity Small-Cap International Government Managed
Income Growth LT Value Index Index REIT Value Securities Bond
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account (1) Account Account
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $19,987 $84,626 $120 $7,046 $89 $66 $6,198 $607 $3,736
-------------------------------------------------------------------------------------------
Net Investment Income... 19,987 84,626 120 7,046 89 66 6,198 607 3,736
-------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions........... 4,892 35,841 (3) 15,462 225 458 4,188 (301) (785)
Net unrealized
appreciation
(depreciation)
on investments......... (27,783) (140,632) 430 (25,041) (380) 254 (15,360) 625 2,281
-------------------------------------------------------------------------------------------
Net Realized and
Unrealized Gain
(Loss) on Investments... (22,891) (104,791) 427 (9,579) (155) 712 (11,172) 324 1,496
-------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS......... ($2,904) ($20,165) $547 ($2,533) ($66) $778 ($4,974) $931 $5,232
-------------------------------------------------------------------------------------------
</TABLE>
(1) Formerly named International Variable Account.
See Notes to Financial Statements
G-5
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Money High Yield Large-Cap
Market Bond Value Variable Variable Variable Variable
Variable Variable Variable Account Account Account Account
Account Account Account I II III IV
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $4,238 $2,197 $91 $210 $125 $320 $166
-----------------------------------------------------------------
Net Investment Income... 4,238 2,197 91 210 125 320 166
-----------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions........... 182 (2,189) 461 172 1,252 1,571 193
Net unrealized
appreciation
(depreciation)
on investments......... (186) (577) 321 605 (2,182) (2,039) (522)
-----------------------------------------------------------------
Net Realized and
Unrealized Gain
(Loss) on Investments .. (4) (2,766) 782 777 (930) (468) (329)
-----------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS ........ $4,234 ($569) $873 $987 ($805) ($148) ($163)
-----------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
G-6
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Diversified Small-Cap International Bond and I-Net Multi-
Equity Markets Research Equity Large-Cap Income Equity Tollkeeper Strategy
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account (1) Account (2) Account (1) Account Account Account (1) Account
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
..................... $1,226 $13 $20,820 $237 $4,305 $13,455
Net realized gain
(loss) from security
transactions......... 2,654 2,775 $1 28,397 ($62) (251) 4,031 1,202
Net unrealized
appreciation
(depreciation) on
investments ......... (7,023) (5,011) 99 (35,442) 80 387 (8,199) $112 (13,382)
----------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Resulting from
Operations............ (3,143) (2,223) 100 13,775 18 373 137 112 1,275
----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM POLICY
TRANSACTIONS
Transfer of net
premiums............. 4,751 2,987 178 19,543 814 2,048 7,902 272 8,531
Transfers between
variable accounts,
net ................. 4,547 6,702 2,184 14,398 10,278 (289) 5,508 2,620 (1,753)
Transfers--policy
charges and
deductions .......... (1,124) (709) (25) (7,234) (148) (218) (1,903) (32) (3,180)
Transfers--
surrenders........... (574) (305) (7,280) (6) (216) (777) (1,415)
Transfers--other..... (540) (276) 9 (2,420) (65) (80) (338) (37) (635)
----------------------------------------------------------------------------------------------------
Net Increase in Net
Assets Derived
from Policy
Transactions.......... 7,060 8,399 2,346 17,007 10,873 1,245 10,392 2,823 1,548
----------------------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS ............... 3,917 6,176 2,446 30,782 10,891 1,618 10,529 2,935 2,823
----------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period.. 33,035 19,910 289,069 6,997 59,599 151,897
----------------------------------------------------------------------------------------------------
End of Period........ $36,952 $26,086 $2,446 $319,851 $10,891 $8,615 $70,128 $2,935 $154,720
----------------------------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
(2) Formerly named Growth Variable Account.
See Notes to Financial Statements
G-7
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Mid-Cap Equity Small-Cap International Government Managed
Income Growth LT Value Index Index REIT Value Securities Bond
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account (1) Account Account
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income.. $19,987 $84,626 $120 $7,046 $89 $66 $6,198 $607 $3,736
Net realized gain
(loss) from security
transactions........... 4,892 35,841 (3) 15,462 225 458 4,188 (301) (785)
Net unrealized
appreciation
(depreciation) on
investments............ (27,783) (140,632) 430 (25,041) (380) 254 (15,360) 625 2,281
---------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... (2,904) (20,165) 547 (2,533) (66) 778 (4,974) 931 5,232
---------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums............... 17,297 40,262 1,387 46,671 2,605 616 19,669 2,096 10,551
Transfers between
variable accounts, net. (107) 32,400 3,965 2,809 4,261 3,410 4,095 (1,754) 2,606
Transfers--policy
charges and deductions. (5,553) (14,385) (306) (12,343) (323) (156) (5,201) (667) (2,718)
Transfers--surrenders.. (3,359) (9,751) (11) (6,326) (21) (14) (3,710) (234) (1,018)
Transfers--other....... (1,513) (4,539) (62) (1,982) (164) (38) (1,532) (85) (501)
---------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy
Transactions............ 6,765 43,987 4,973 28,829 6,358 3,818 13,321 (644) 8,920
---------------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS.................. 3,861 23,822 5,520 26,296 6,292 4,596 8,347 287 14,152
---------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period.... 225,466 536,446 5,208 434,565 6,426 2,643 215,349 22,218 114,197
---------------------------------------------------------------------------------------------
End of Period.......... $229,327 $560,268 $10,728 $460,861 $12,718 $7,239 $223,696 $22,505 $128,349
---------------------------------------------------------------------------------------------
</TABLE>
(1) Formerly named International Variable Account.
See Notes to Financial Statements
G-8
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Money High Yield Large-Cap
Market Bond Value Variable Variable Variable Variable
Variable Variable Variable Account Account Account Account
Account Account Account I II III IV
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income.. $4,238 $2,197 $91 $210 $125 $320 $166
Net realized gain
(loss) from security
transactions........... 182 (2,189) 461 172 1,252 1,571 193
Net unrealized
appreciation
(depreciation) on
investments............ (186) (577) 321 605 (2,182) (2,039) (522)
--------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... 4,234 (569) 873 987 (805) (148) (163)
--------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums............... 160,988 3,900 1,502 951 1,227 1,028 473
Transfers between
variable accounts, net. (99,248) (1,123) 5,208 5,818 (10,276) 3,359 533
Transfers--policy
charges and deductions. (7,285) (1,222) (371) (362) (366) (324) (143)
Transfers--surrenders.. (4,340) (632) (28) (360) (598) (390) (379)
Transfers--other....... (3,729) (136) (70) (38) 136 (58) (1)
--------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy
Transactions............ 46,386 787 6,241 6,009 (9,877) 3,615 483
--------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS........... 50,620 218 7,114 6,996 (10,682) 3,467 320
--------------------------------------------------------------------
NET ASSETS
Beginning of Period.... 131,046 48,032 5,378 9,927 21,622 8,463 6,005
--------------------------------------------------------------------
End of Period.......... $181,666 $48,250 $12,492 $16,923 $10,940 $11,930 $6,325
--------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
G-9
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Small-Cap Bond and Multi- Equity Growth Mid-Cap Equity
Equity Markets Equity Income Equity Strategy Income LT Value Index
Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account (1) Account Account Account Account Account Account (2) Account
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE
(DECREASE) IN NET
ASSETS
FROM OPERATIONS
Net investment
income.......... $2,297 $60 $24,357 $647 $2,430 $12,175 $18,449 $24,658 $10 $5,600
Net realized
gain (loss) from
security
transactions ... 835 (293) 17,437 (147) 1,715 1,903 8,208 25,696 (70) 16,677
Net unrealized
appreciation
(depreciation)
on investments.. 3,261 6,681 51,373 (970) 8,860 (4,391) (1,356) 195,153 66 45,834
------------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations.. 6,393 6,448 93,167 (470) 13,005 9,687 25,301 245,507 6 68,111
------------------------------------------------------------------------------------------------------
INCREASE
(DECREASE) IN NET
ASSETS
FROM POLICY
TRANSACTIONS
Transfer of net
premiums........ 6,178 3,315 31,800 1,814 7,890 13,459 27,427 46,518 1,020 69,793
Transfers
between variable
accounts, net
(3)............. 4,792 1,415 (11,434) 1,209 23,369 5,169 7,886 51,856 4,405 34,183
Transfers--
policy charges
and deductions.. (1,517) (908) (11,435) (439) (2,031) (6,081) (10,117) (16,923) (151) (19,242)
Transfers--
surrenders (3).. (633) (553) (8,959) (146) (577) (3,028) (10,670) (13,700) (23) (18,106)
Transfers--other
(3)............. 56 121 (3,740) (253) (123) (1,307) (2,228) (4,089) (49) (3,361)
------------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Derived
from Policy
Transactions..... 8,876 3,390 (3,768) 2,185 28,528 8,212 12,298 63,662 5,202 63,267
------------------------------------------------------------------------------------------------------
NET INCREASE IN
NET ASSETS....... 15,269 9,838 89,399 1,715 41,533 17,899 37,599 309,169 5,208 131,378
------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of
Year............ 17,766 10,072 199,670 5,282 18,066 133,998 187,867 227,277 303,187
------------------------------------------------------------------------------------------------------
End of Year..... $33,035 $19,910 $289,069 $6,997 $59,599 $151,897 $225,466 $536,446 $5,208 $434,565
------------------------------------------------------------------------------------------------------
<CAPTION>
Small-Cap
Index
Variable
Account (2)
-----------
<S> <C>
INCREASE
(DECREASE) IN NET
ASSETS
FROM OPERATIONS
Net investment
income.......... $95
Net realized
gain (loss) from
security
transactions ... 37
Net unrealized
appreciation
(depreciation)
on investments.. 667
-----------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations.. 799
-----------
INCREASE
(DECREASE) IN NET
ASSETS
FROM POLICY
TRANSACTIONS
Transfer of net
premiums........ 1,576
Transfers
between variable
accounts, net
(3)............. 4,252
Transfers--
policy charges
and deductions.. (168)
Transfers--
surrenders (3).. (8)
Transfers--other
(3)............. (25)
-----------
Net Increase
(Decrease) in Net
Assets Derived
from Policy
Transactions..... 5,627
-----------
NET INCREASE IN
NET ASSETS....... 6,426
-----------
NET ASSETS
Beginning of
Year............
-----------
End of Year..... $6,426
-----------
</TABLE>
(1) Formerly named Growth Variable Account.
(2) Operations commenced on January 8, 1999.
(3) Amounts have been reclassified to conform with current year presentation.
See Notes to Financial Statements
G-10
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1999
(In thousands)
<TABLE>
<CAPTION>
Inter- Govern- High
national ment Managed Money Yield Large-Cap
REIT Value Securities Bond Market Bond Value Variable Variable Variable
Variable Variable Variable Variable Variable Variable Variable Account Account Account
Account (1) Account (2) Account Account Account Account Account (1) I II III
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE
(DECREASE) IN NET
ASSETS
FROM OPERATIONS
Net investment
income ......... $82 $7,401 $1,278 $8,539 $4,600 $3,845 $20 $312 $1,181 $243
Net realized
gain (loss) from
security
transactions.... (15) 8,072 9 353 259 (1,968) 29 254 277 224
Net unrealized
appreciation
(depreciation)
on investments.. (140) 23,374 (1,640) (10,865) (137) (533) 58 1,374 1,904 1,903
-------------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations.. (73) 38,847 (353) (1,973) 4,722 1,344 107 1,940 3,362 2,370
-------------------------------------------------------------------------------------------------------
INCREASE
(DECREASE) IN NET
ASSETS FROM
POLICY
TRANSACTIONS
Transfer of net
premiums........ 327 29,734 3,788 15,623 255,115 9,673 915 1,409 1,432 1,411
Transfers
between variable
accounts, net
(3) ............ 2,476 6,433 4,897 6,358 (176,515) (1,919) 4,593 5,357 14,362 1,264
Transfers--
policy charges
and deductions.. (65) (8,874) (1,057) (4,945) (9,879) (2,496) (177) (234) (290) (327)
Transfers--
surrenders (3).. (13) (7,341) (2,246) (2,536) (8,550) (1,409) (3) (45) (171) (592)
Transfers--
other (3) ...... (9) (590) 40 (194) (2,954) (531) (57) (22) (21) (115)
-------------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Derived
from Policy
Transactions..... 2,716 19,362 5,422 14,306 57,217 3,318 5,271 6,465 15,312 1,641
-------------------------------------------------------------------------------------------------------
NET INCREASE IN
NET ASSETS ...... 2,643 58,209 5,069 12,333 61,939 4,662 5,378 8,405 18,674 4,011
-------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of
Year............ 157,140 17,149 101,864 69,107 43,370 1,522 2,948 4,452
-------------------------------------------------------------------------------------------------------
End of Year..... $2,643 $215,349 $22,218 $114,197 $131,046 $48,032 $5,378 $9,927 $21,622 $8,463
-------------------------------------------------------------------------------------------------------
<CAPTION>
Variable
Account
IV
------------------------------------------------------------------------------------------------
<S> <C>
INCREASE
(DECREASE) IN NET
ASSETS
FROM OPERATIONS
Net investment
income ......... $474
Net realized
gain (loss) from
security
transactions.... 646
Net unrealized
appreciation
(depreciation)
on investments.. 141
-------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations.. 1,261
-------
INCREASE
(DECREASE) IN NET
ASSETS FROM
POLICY
TRANSACTIONS
Transfer of net
premiums........ 885
Transfers
between variable
accounts, net
(3) ............ (595)
Transfers--
policy charges
and deductions.. (259)
Transfers--
surrenders (3).. (251)
Transfers--other
(3) ............ (22)
-------
Net Increase
(Decrease) in Net
Assets Derived
from Policy
Transactions..... (242)
-------
NET INCREASE IN
NET ASSETS ...... 1,019
-------
NET ASSETS
Beginning of
Year............ 4,986
-------
End of Year..... $6,005
-------
</TABLE>
(1) Operations commenced on January 19, 1999 for the REIT Variable Account and
January 8, 1999 for the Large-Cap Value Variable Account.
(2) Formerly named International Variable Account.
(3) Amounts have been reclassified to conform with current year presentation.
See Notes to Financial Statements
G-11
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Pacific Select Exec Separate Account (the "Separate Account") is
registered as a unit investment trust under the Investment Company Act of
1940, as amended, and is currently composed of twenty-five subaccounts called
Variable Accounts: the Aggressive Equity Variable Account, the Emerging
Markets Variable Account, the Diversified Research Variable Account, the
Small-Cap Equity Variable Account (formerly the Growth Variable Account), the
International Large-Cap Variable Account, the Bond and Income Variable
Account, the Equity Variable Account, the I-Net Tollkeeper Variable Account,
the Multi-Strategy Variable Account, the Equity Income Variable Account, the
Growth LT Variable Account, the Mid-Cap Value Variable Account, the Equity
Index Variable Account, the Small-Cap Index Variable Account, the REIT
Variable Account, the International Value Variable Account (formerly the
International Variable Account), the Government Securities Variable Account,
the Managed Bond Variable Account, the Money Market Variable Account, the High
Yield Bond Variable Account, the Large-Cap Value Variable Account, and the
Variable Accounts I through IV. The assets in each of the first twenty-one
Variable Accounts are invested in shares of the corresponding portfolios of
Pacific Select Fund and the assets of the last four Variable Accounts (Brandes
International Equity, Turner Core Growth, Frontier Capital Appreciation, and
Clifton Enhanced U.S. Equity (formerly Enhanced U.S. Equity)) are invested in
shares of the corresponding portfolios of M Fund, Inc. (collectively, the
"Funds"). Each Variable Account pursues different investment objectives and
policies. The financial statements of the Funds, including the schedules of
investments, are either included in Sections B through E of this report or
provided separately 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 three new Variable Accounts: the Diversified Research
Variable Account, the International Large-Cap Variable Account, and the I-Net
Tollkeeper Variable Account. The International Large-Cap Variable Account
commenced operations on January 3, 2000, the Diversified Research Variable
Account commenced operations on January 4, 2000, and the I-Net Tollkeeper
Variable Account commenced operations on May 1, 2000.
The Separate Account was established by Pacific Life Insurance Company
("Pacific Life") on May 12, 1988 and commenced operations on November 22,
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 Life. The assets of the Separate Account
will not be charged with any liabilities arising out of any other business
conducted by Pacific Life, but the obligations of the Separate Account,
including benefits related to variable life insurance, are obligations of
Pacific Life.
The Separate Account held by Pacific Life represents funds from individual
flexible premium variable life policies. The assets of the Separate Account
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 Funds are valued at the reported net asset
values of the respective portfolios. Valuation of securities held by the Funds
is discussed in the notes to their financial statements.
B. Security Transactions and Investment Income
Transactions are recorded on the trade date. Realized gains and losses on
sales of investments are determined on the basis of identified cost. Dividend
income is recorded on the ex-dividend date.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal income
tax return of Pacific Life, 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 Life with respect to
the operations of the Separate Account.
2. DIVIDENDS
During the six months period ended June 30, 2000, the Funds declared
dividends for each portfolio, except for the Diversified Research Portfolio,
the International Large-Cap Portfolio, and the I-Net Tollkeeper Portfolio. The
amounts accrued by the Separate Account for its share of the dividends were
reinvested in additional full and fractional shares of the related portfolios.
3. CHARGES AND EXPENSES
With respect to variable life insurance policies funded by the Separate
Account, Pacific Life makes certain deductions from premiums for sales load
and state premium taxes before amounts are allocated to the Separate Account.
Pacific Life also makes certain deductions from the net assets of each
Variable Account for the mortality and expense risks Pacific Life assumes,
administrative expenses, cost of insurance, charges for optional benefits and
any sales and underwriting surrender charges. The operating expenses of the
Separate Account are paid by Pacific Life.
4. RELATED PARTY AGREEMENT
Pacific Select Distributors, Inc. (formerly Pacific Mutual Distributors,
Inc.), a wholly-owned subsidiary of Pacific Life, serves as principal
underwriter of variable life insurance policies funded by interests in the
Separate Account, without remuneration from the Separate Account.
H-1
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
5. SEPARATE ACCOUNT'S COST OF INVESTMENTS IN THE FUNDS SHARES
The investment in the Funds shares are carried at identified cost, which
represents the amount available for investment (including reinvested
distributions of net investment income and realized gains). A reconciliation
of total cost and market value of the Separate Account's investments in the
Funds as of June 30, 2000 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Variable Accounts
-----------------------------------------------------------------------------------
Aggressive Emerging Diversified Small-Cap International Bond and
Equity Markets Research(1) Equity(2) Large-Cap(1) Income Equity
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $28,345 $14,846 $225,194 $7,935 $48,734
Add:Total net proceeds
from policy
transactions 42,878 16,935 $2,402 143,987 $15,516 2,606 27,019
Reinvested distribu-
tions from the Funds:
(a) Net investment in-
come 13 324 237 4
(b) Net realized gain 1,226 20,496 4,301
-----------------------------------------------------------------------------------
Sub-Total 72,449 31,794 2,402 390,001 15,516 10,778 80,058
Less:Cost of investments
disposed during the pe-
riod 33,164 5,760 55 98,583 4,705 1,612 12,596
-----------------------------------------------------------------------------------
Total cost of invest-
ments at end of period 39,285 26,034 2,347 291,418 10,811 9,166 67,462
Add:Unrealized apprecia-
tion (depreciation) (2,333) 52 99 28,433 80 (551) 2,666
-----------------------------------------------------------------------------------
Total market value of
investments at end of
period $36,952 $26,086 $2,446 $319,851 $10,891 $8,615 $70,128
-----------------------------------------------------------------------------------
<CAPTION>
I-Net Multi- Equity Growth Mid-Cap Equity Small-Cap
Tollkeeper(1) Strategy Income LT Value Index Index
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $134,934 $186,348 $266,532 $5,142 $298,365 $5,759
Add:Total net proceeds
from policy
transactions $2,845 6,743 19,612 97,197 7,025 56,460 8,295
Reinvested distribu-
tions from the Funds:
(a) Net investment in-
come 2,067 972 1,272 7 2,123 23
(b) Net realized gain 11,388 19,015 83,354 113 4,923 66
-----------------------------------------------------------------------------------
Sub-Total 2,845 155,132 225,947 448,355 12,287 361,871 14,143
Less:Cost of investments
disposed during the pe-
riod 22 3,994 7,954 17,368 2,055 12,170 1,713
-----------------------------------------------------------------------------------
Total cost of invest-
ments at end of period 2,823 151,138 217,993 430,987 10,232 349,701 12,430
Add:Unrealized apprecia-
tion 112 3,582 11,334 129,281 496 111,160 288
-----------------------------------------------------------------------------------
Total market value of
investments at end of
period $2,935 $154,720 $229,327 $560,268 $10,728 $460,861 $12,718
-----------------------------------------------------------------------------------
<CAPTION>
International Government Managed Money High Yield Large-Cap
REIT Value(2) Securities Bond Market Bond Value
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $2,783 $188,119 $23,386 $120,723 $131,293 $50,328 $5,320
Add:Total net proceeds
from policy
transactions 20,967 50,981 5,359 30,627 318,666 18,814 14,069
Reinvested distribu-
tions from the Funds:
(a) Net investment in-
come 62 607 3,736 4,238 2,197 23
(b) Net realized gain 4 6,198 68
-----------------------------------------------------------------------------------
Sub-Total 23,816 245,298 29,352 155,086 454,197 71,339 19,480
Less:Cost of investments
disposed during the pe-
riod 16,692 33,472 6,305 22,491 272,098 20,216 7,367
-----------------------------------------------------------------------------------
Total cost of invest-
ments at end of period 7,124 211,826 23,047 132,595 182,099 51,123 12,113
Add:Unrealized apprecia-
tion (depreciation) 115 11,870 (542) (4,246) (433) (2,873) 379
-----------------------------------------------------------------------------------
Total market value of
investments at end of
period $7,239 $223,696 $22,505 $128,349 $181,666 $48,250 $12,492
-----------------------------------------------------------------------------------
</TABLE>
------------------
(1) Operations commenced during 2000 (See Note 1 to Financial Statements).
(2) Small-Cap Equity was formerly named Growth and International Value was
formerly named International.
H-2
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Variable Accounts
--------------------------------------------
I II III IV
--------------------------------------------
<S> <C> <C> <C> <C>
Total cost of investments
at beginning of period $8,485 $19,237 $6,298 $5,315
Add: Total net proceeds
from policy transactions 6,504 16,975 24,673 1,438
Reinvested distribu-
tions from the Funds:
(a) Net investment in-
come 9
(b) Net realized gain 201 125 320 166
--------------------------------------------
Sub-Total 15,199 36,337 31,291 6,919
Less: Cost of investments
disposed during the pe-
riod 323 25,600 19,487 762
--------------------------------------------
Total cost of investments
at end of period 14,876 10,737 11,804 6,157
Add: Unrealized apprecia-
tion 2,047 203 126 168
--------------------------------------------
Total market value of in-
vestments at end of pe-
riod $16,923 $10,940 $11,930 $6,325
--------------------------------------------
6. TRANSACTIONS IN SEPARATE ACCOUNT UNITS AND SELECTED ACCUMULATION UNIT **
INFORMATION
Transactions in Separate Account units for the period ended June 30, 2000 and
the selected accumulation unit information as of June 30, 2000 were as follows:
<CAPTION>
Variable Accounts
-----------------------------------------------------------------------------------
Aggressive Emerging Diversified Small-Cap International Bond and
Equity Markets Research (1) Equity (2) Large-Cap (1) Income Equity
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total units outstanding
at beginning of period 2,033,582 1,834,543 4,960,169 582,556 2,877,894
Increase (decrease) in
units resulting from
policy transactions:
(a) Transfer of net
premiums 302,764 282,920 15,849 322,829 87,488 165,588 391,052
(b) Transfers between
variable accounts,
net 290,120 628,511 199,447 214,397 1,093,332 (24,159) 278,561
(c) Transfers--policy
charges and deduc-
tions (72,006) (67,244) (2,198) (119,633) (15,973) (17,679) (94,018)
(d) Transfers--surren-
ders (37,846) (29,526) (15) (121,103) (655) (17,609) (37,757)
(e) Transfers--other (24,915) (29,472) (163) (49,100) (2,259) (6,122) (22,799)
-----------------------------------------------------------------------------------
Sub-Total 458,117 785,189 212,920 247,390 1,161,933 100,019 515,039
-----------------------------------------------------------------------------------
Total units outstanding
at end of period 2,491,699 2,619,732 212,920 5,207,559 1,161,933 682,575 3,392,933
-----------------------------------------------------------------------------------
Accumulation Unit Value:
At beginning of period $16.24 $10.85 $10.00 $58.28 $10.00 $12.01 $20.71
At end of period $14.83 $9.96 $11.49 $61.42 $9.37 $12.62 $20.67
<CAPTION>
I-Net Multi- Equity Growth Mid-Cap Equity Small-Cap
Tollkeeper (1) Strategy Income LT Value Index Index
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total units outstanding
at beginning of period 4,129,050 4,400,614 8,447,233 503,550 8,532,306 547,204
Increase (decrease) in
units resulting from
policy transactions:
(a) Transfer of net
premiums 27,691 231,536 343,107 613,829 130,181 935,082 208,867
(b) Transfers between
variable accounts,
net 266,840 (48,067) (1,024) 453,774 372,451 47,225 344,793
(c) Transfers--policy
charges and deduc-
tions (3,329) (86,530) (109,923) (218,477) (28,600) (247,861) (26,862)
(d) Transfers--surren-
ders (38,566) (66,601) (147,319) (1,024) (126,960) (1,677)
(e) Transfers--other (3,173) (16,818) (31,755) (79,170) (10,340) (40,592) (14,359)
-----------------------------------------------------------------------------------
Sub-Total 288,029 41,555 133,804 622,637 462,668 566,894 510,762
-----------------------------------------------------------------------------------
Total units outstanding
at end of period 288,029 4,170,605 4,534,418 9,069,870 966,218 9,099,200 1,057,966
-----------------------------------------------------------------------------------
Accumulation Unit Value:
At beginning of period $10.00 $36.79 $51.24 $63.51 $10.34 $50.93 $11.74
At end of period $10.19 $37.10 $50.57 $61.77 $11.10 $50.65 $12.02
</TABLE>
------------------
** Accumulation Unit: unit of measure used to calculate the value of a Policy
Owner's interest in a Variable Account during the accumulation period.
(1) Operations commenced during 2000 (See Note 1 to Financial Statements).
(2) Small-Cap Equity was formerly named Growth.
H-3
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Variable Accounts
------------------------------------------------------------------------------
International Government Managed Money High Yield Large-Cap
REIT Value (1) Securities Bond Market Bond Value
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total units outstanding
at beginning of period 264,601 8,015,534 954,685 4,684,288 7,383,941 1,720,074 494,241
Increase (decrease) in
units resulting from
policy transactions:
(a) Transfer of net
premiums 57,669 766,839 89,190 425,626 8,944,720 141,889 135,649
(b) Transfers between
variable accounts,
net 318,246 170,183 (74,648) 104,048 (5,527,626) (41,029) 463,538
(c) Transfers--policy
charges and deduc-
tions (14,480) (202,935) (28,375) (111,369) (405,119) (44,489) (33,143)
(d) Transfers--surren-
ders (1,226) (145,538) (9,944) (41,145) (241,167) (23,054) (2,431)
(e) Transfers--other (2,557) (60,827) (3,630) (21,378) (206,462) (5,352) (5,879)
------------------------------------------------------------------------------
Sub-Total 357,652 527,722 (27,407) 355,782 2,564,346 27,965 557,734
------------------------------------------------------------------------------
Total units outstanding
at end of period 622,253 8,543,256 927,278 5,040,070 9,948,287 1,748,039 1,051,975
------------------------------------------------------------------------------
Accumulation Unit Value:
At beginning of period $9.99 $26.87 $23.27 $24.38 $17.75 $27.92 $10.88
At end of period $11.63 $26.18 $24.27 $25.47 $18.26 $27.60 $11.87
<CAPTION>
I II III IV
-------------------------------------------
<S> <C> <C> <C> <C>
Total units outstanding
at beginning of period 564,686 878,111 451,959 291,010
Increase (decrease) in
units resulting from
policy transactions:
(a) Transfer of net
premiums 56,832 48,710 48,539 22,970
(b) Transfers between
variable accounts,
net 348,646 (470,540) 88,814 25,846
(c) Transfers--policy
charges and deduc-
tions (21,536) (14,345) (15,254) (6,953)
(d) Transfers--surren-
ders (21,830) (23,286) (17,981) (18,400)
(e) Transfers--other (2,431) 3,732 (3,244) (31)
-------------------------------------------
Sub-Total 359,681 (455,729) 100,874 23,432
-------------------------------------------
Total units outstanding
at end of period 924,367 422,382 552,833 314,442
-------------------------------------------
Accumulation Unit Value:
At beginning of period $17.58 $24.62 $18.72 $20.64
At end of period $18.31 $25.90 $21.58 $20.11
</TABLE>
------------------
(1) International Value was formerly named International.
H-4
