<PAGE>
SEMI-ANNUAL REPORT
. PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT OF PACIFIC LIFE INSURANCE
COMPANY
[LOGO OF PACIFIC SELECT VARIABLE ANNUITY]
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth
Market Bond Bond Securities Growth Equity LT
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
======================================================================
ASSETS <C> <C> <C> <C> <C> <C> <C>
<S>
Investments In Pacific Select Fund:
Money Market Portfolio (17,616 shares; cost $177,141) ...... $177,094
High Yield Bond Portfolio (26,194 shares; cost $257,923) ... $255,662
Managed Bond Portfolio (33,390 shares; cost $361,046) ...... $372,144
Government Securities Portfolio
(9,197 shares; cost $95,910) .............................. $98,419
Growth Portfolio (1,294 shares; cost $23,917) .............. $30,643
Aggressive Equity Portfolio (9,517 shares; cost $103,144) .. $120,381
Growth LT Portfolio (29,506 shares; cost $466,010) ......... $637,536
Receivables:
Due from Pacific Life Insurance Company .................... 5,012 105 111 128
Fund shares redeemed ....................................... 285 10 324
---------------------------------------------------------------------
Total Assets ................................................ 182,106 255,767 372,255 98,704 30,653 120,509 637,860
---------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life Insurance Company ...................... 285 10 324
Fund shares purchased ...................................... 5,012 105 111 128
---------------------------------------------------------------------
Total Liabilities ........................................... 5,012 105 111 285 10 128 324
---------------------------------------------------------------------
NET ASSETS .................................................. $177,094 $255,662 $372,144 $98,419 $30,643 $120,381 $637,536
=====================================================================
</TABLE>
See Notes to Financial Statements
B-1
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Bond and
Income Strategy Equity Income
Variable Variable Variable Variable
Account Account Account Account
------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments In Pacific Select Fund:
Equity Income Portfolio (28,049 shares; cost $580,557) ....... $705,325
Multi-Strategy Portfolio (14,951 shares; cost $219,535) ...... $245,334
Equity Portfolio (10,007 shares; cost $217,251) .............. $279,123
Bond and Income Portfolio (7,455 shares; cost $91,406) ....... $98,051
Equity Index Portfolio (23,718 shares; cost $512,925) ........
International Portfolio (37,649 shares; cost $585,387) .......
Emerging Markets Portfolio (8,962 shares; cost $88,413) ......
Receivables:
Due from Pacific Life Insurance Company ...................... 4 36
Fund shares redeemed ......................................... 130 33
--------------------------------------------------------
Total Assets .................................................. 705,455 245,367 279,127 98,087
--------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life Insurance Company ........................ 130 33
Fund shares purchased ........................................ 4 36
--------------------------------------------------------
Total Liabilities ............................................. 130 33 4 36
--------------------------------------------------------
NET ASSETS .................................................... $705,325 $245,334 $279,123 $98,051
========================================================
<CAPTION>
Equity Inter- Emerging
Index national Markets
Variable Variable Variable
Account Account Account
---------------------------------------
<S> <C> <C> <C>
ASSETS
Investments In Pacific Select Fund:
Equity Income Portfolio (28,049 shares; cost $580,557) .......
Multi-Strategy Portfolio (14,951 shares; cost $219,535) ......
Equity Portfolio (10,007 shares; cost $217,251) ..............
Bond and Income Portfolio (7,455 shares; cost $91,406) .......
Equity Index Portfolio (23,718 shares; cost $512,925) ........ $706,952
International Portfolio (37,649 shares; cost $585,387) ....... $652,886
Emerging Markets Portfolio (8,962 shares; cost $88,413) ...... $73,721
Receivables:
Due from Pacific Life Insurance Company ...................... 247
Fund shares redeemed ......................................... 581 4,586
---------------------------------------
Total Assets .................................................. 707,533 657,472 73,968
---------------------------------------
LIABILITIES
Payables:
Due to Pacific Life Insurance Company ........................ 581 4,586
Fund shares purchased ........................................ 247
---------------------------------------
Total Liabilities ............................................. 581 4,586 247
---------------------------------------
NET ASSETS .................................................... $706,952 $652,886 $73,721
=======================================
</TABLE>
See Notes to Financial Statements
B-2
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ...................................................... $4,344 $12,344 $13,481 $4,476 $ 3,261
EXPENSES
Mortality and expense risk fee ................................. 1,045 1,566 2,103 608 208
--------------------------------------------------------------
Net Investment Income (Loss) .................................... 3,299 10,778 11,378 3,868 3,053
--------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain from security transactions ................... 172 75 1 318 1,651
Net unrealized appreciation (depreciation) on investments ...... (137) (5,612) 127 (964) (2,908)
--------------------------------------------------------------
Net Realized And Unrealized Gain (Loss) On Investments .......... 35 (5,537) 128 (646) (1,257)
--------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................................... $3,334 $ 5,241 $11,506 $3,222 $ 1,796
==============================================================
<CAPTION>
Aggressive Growth
Equity LT
Variable Variable
Account Account
-----------------------
INVESTMENT INCOME
Dividends ...................................................... $ 26,650
EXPENSES
Mortality and expense risk fee ................................. $ 677 3,520
-----------------------
Net Investment Income (Loss) .................................... (677) 23,130
-----------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain from security transactions ................... 871 5,202
Net unrealized appreciation (depreciation) on investments ...... 12,092 118,184
-----------------------
Net Realized And Unrealized Gain (Loss) On Investments .......... 12,963 123,386
-----------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................................... $12,286 $146,516
=======================
</TABLE>
See Notes to Financial Statements
B-3
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Bond and Equity Inter- Emerging
Income Strategy Equity Income Index national Markets
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
==========================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ............................ $77,234 $19,100 $15,536 $2,917 $ 9,415 $47,203 $ 125
EXPENSES
Mortality and expense risk fee ....... 4,087 1,381 1,549 533 4,028 3,799 486
------------------------------------------------------------------------------------------
Net Investment Income (Loss) .......... 73,147 17,719 13,987 2,384 5,387 43,404 (361)
------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss)
from security transactions .......... 3,801 789 1,576 100 8,615 20,443 (297)
Net unrealized appreciation
(depreciation) on investments ....... 11,948 1,789 35,585 1,142 84,516 18,504 (10,397)
------------------------------------------------------------------------------------------
Net Realized And Unrealized Gain
(Loss) On Investments ................ 15,749 2,578 37,161 1,242 93,131 38,947 (10,694)
------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............ $88,896 $20,297 $51,148 $3,626 $98,518 $82,351 $(11,055)
==========================================================================================
</TABLE>
See Notes to Financial Statements
B-4
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth
Market Bond Bond Securities Growth Equity LT
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
=================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) ................. $ 3,299 $ 10,778 $ 11,378 $ 3,868 $ 3,053 $ (677) $ 23,130
Net realized gain from security transactions . 172 75 1 318 1,651 871 5,202
Net unrealized appreciation (depreciation)
on investments .............................. (137) (5,612) 127 (964) (2,908) 12,092 118,184
---------------------------------------------------------------------------------
Net Increase In Net Assets Resulting
From Operations .............................. 3,334 5,241 11,506 3,222 1,796 12,286 146,516
---------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums ..................... 83,973 17,891 26,483 6,744 174 6,892 29,081
Transfers--policy charges and deductions ..... (2,625) (1,961) (3,371) (622) (916) (646) (3,048)
Transfers in (from other variable accounts) .. 335,497 43,833 55,098 14,401 15,280 41,187 70,229
Transfers out (to other variable accounts) ... (413,304) (42,213) (19,719) (21,245) (17,752) (31,581) (80,089)
Transfers--other ............................. (9,540) (5,126) (6,442) (3,314) (1,547) (1,989) (12,215)
---------------------------------------------------------------------------------
Net Increase (Decrease) In Net Assets Derived
From Policy Transactions ..................... (5,999) 12,424 52,049 (4,036) (4,761) 13,863 3,958
---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ......... (2,665) 17,665 63,555 (814) (2,965) 26,149 150,474
---------------------------------------------------------------------------------
NET ASSETS
Beginning of Period .......................... 179,759 237,997 308,589 99,233 33,608 94,232 487,062
---------------------------------------------------------------------------------
End of Period ................................ $ 177,094 $255,662 $372,144 $ 98,419 $ 30,643 $120,381 $637,536
=================================================================================
</TABLE>
See Notes to Financial Statements
B-5
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Bond and
Income Strategy Equity Income
Variable Variable Variable Variable
Account Account Account Account
-------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) ................................. $ 73,147 $ 17,719 $ 13,987 $ 2,384
Net realized gain (loss) from security transactions .......... 3,801 789 1,576 100
Net unrealized appreciation (depreciation) on investments .... 11,948 1,789 35,585 1,142
-------------------------------------------------------
Net Increase (Decrease) In Net Assets Resulting
From Operations .............................................. 88,896 20,297 51,148 3,626
-------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums ..................................... 42,972 15,918 15,584 6,440
Transfers--policy charges and deductions ..................... (4,416) (1,765) (1,352) (461)
Transfers in (from other variable accounts) .................. 73,492 36,228 32,847 22,799
Transfers out (to other variable accounts) ................... (59,387) (16,092) (27,567) (10,249)
Transfers--other ............................................. (13,381) (4,850) (4,834) (1,744)
-------------------------------------------------------
Net Increase In Net Assets Derived
From Policy Transactions ..................................... 39,280 29,439 14,678 16,785
-------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 128,176 49,736 65,826 20,411
-------------------------------------------------------
NET ASSETS
Beginning of Period .......................................... 577,149 195,598 213,297 77,640
-------------------------------------------------------
End of Period ................................................ $ 705,325 $ 245,334 $279,123 $ 98,051
=======================================================
<CAPTION>
Equity Inter- Emerging
Index national Markets
Variable Variable Variable
Account Account Account
------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) ................................. $5,387 $43,404 $(361)
Net realized gain (loss) from security transactions .......... 8,615 20,443 (297)
Net unrealized appreciation (depreciation) on investments .... 84,516 18,504 (10,397)
------------------------------------------
Net Increase (Decrease) In Net Assets Resulting
From Operations .............................................. 98,518 82,351 (11,055)
------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums ..................................... 47,795 30,410 5,236
Transfers--policy charges and deductions ..................... (3,762) (3,899) (332)
Transfers in (from other variable accounts) .................. 107,692 210,622 17,776
Transfers out (to other variable accounts) ................... (92,352) (194,944) (12,107)
Transfers--other ............................................. (13,711) (10,971) (1,166)
------------------------------------------
Net Increase In Net Assets Derived
From Policy Transactions ..................................... 45,662 31,218 9,407
------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 144,180 113,569 (1,648)
------------------------------------------
NET ASSETS
Beginning of Period .......................................... 562,772 539,317 75,369
------------------------------------------
End of Period ................................................ $706,952 $ 652,886 $ 73,721
==========================================
</TABLE>
See Notes to Financial Statements
B-6
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1997
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth
Market Bond Bond Securities Growth Equity LT
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
====================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) ............... $ 6,709 $ 14,266 $ 10,895 $ 3,512 $ 2,817 $ (850) $ 13,954
Net realized gain (loss) from
security transactions ..................... (14) 387 (268) (168) 1,567 (585) 716
Net unrealized appreciation
(depreciation) on investments ............. (3) (124) 9,969 3,517 3,843 3,975 22,018
------------------------------------------------------------------------------------
Net Increase In Net Assets Resulting
From Operations ............................ 6,692 14,529 20,596 6,861 8,227 2,540 36,688
------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums ................... 407,184 65,608 90,345 18,702 466 32,980 111,853
Transfers--policy charges
and deductions ............................ (2,713) (2,620) (2,668) (1,716) (654) (714) (3,895)
Transfers in (from other
variable accounts) ........................ 493,873 119,494 82,960 32,708 7,804 71,444 138,546
Transfers out (to other variable accounts) . (844,241) (96,259) (37,009) (31,414) (7,720) (47,132) (105,269)
Transfers--other ........................... (14,044) (8,185) (7,976) (5,468) (4,161) (1,840) (13,875)
------------------------------------------------------------------------------------
Net Increase (Decrease) In Net Assets
Derived From Policy Transactions .......... 40,059 78,038 125,652 12,812 (4,265) 54,738 127,360
------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS .................. 46,751 92,567 146,248 19,673 3,962 57,278 164,048
------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year .......................... 133,008 145,430 162,341 79,560 29,646 36,954 323,014
------------------------------------------------------------------------------------
End of Year ................................ $179,759 $237,997 $308,589 $99,233 $33,608 $94,232 $487,062
====================================================================================
</TABLE>
See Notes to Financial Statements
B-7
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1997
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Bond and Equity Inter- Emerging
Income Strategy Equity Income Index national Markets
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
=======================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) .............................. $ 21,494 $ 9,949 $ 3,846 $ 3,790 $ 13,820 $ 11,352 $ (367)
Net realized gain (loss) from security transactions ....... 3,481 705 1,815 (84) 6,185 4,148 (385)
Net unrealized appreciation (depreciation) on investments . 72,238 13,607 15,977 5,524 80,096 9,909 (3,911)
-----------------------------------------------------------------------
Net Increase (Decrease) In Net Assets Resulting
From Operations ........................................... 97,213 24,261 21,638 9,230 100,101 25,409 (4,663)
-----------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums .................................. 139,421 44,848 61,684 18,421 151,785 143,884 27,528
Transfers--policy charges and deductions .................. (4,837) (2,182) (1,073) (1,051) (3,528) (3,992) (378)
Transfers in (from other variable accounts) ............... 140,187 43,643 69,763 19,615 220,944 250,890 87,097
Transfers out (to other variable accounts) ................ (82,182) (21,717) (43,588) (13,877) (140,715) (188,605) (61,671)
Transfers--other .......................................... (14,665) (5,989) (4,653) (2,179) (12,182) (14,402) (1,349)
-----------------------------------------------------------------------
Net Increase In Net Assets Derived
From Policy Transactions .................................. 177,924 58,603 82,133 20,929 216,304 187,775 51,227
----------------------------------------------------------------------
NET INCREASE IN NET ASSETS ................................. 275,137 82,864 103,771 30,159 316,405 213,184 46,564
-----------------------------------------------------------------------
NET ASSETS
Beginning of Year ......................................... 302,012 112,734 109,526 47,481 246,367 326,133 28,805
-----------------------------------------------------------------------
End of Year ............................................... $577,149 $195,598 $213,297 $ 77,640 $ 562,772 $ 539,317 $ 75,369
=======================================================================
</TABLE>
See Notes to Financial Statements
B-8
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Pacific Select Variable Annuity Separate Account (the "Separate
Account") is registered as a unit investment trust under the Investment Company
Act of 1940, as amended, and is currently comprised of fourteen 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 (not offered to new Contract
Owners beginning January 1, 1994), the Aggressive Equity Variable Account, the
Growth LT Variable Account, the Equity Income Variable Account, the Multi-
Strategy Variable Account, the Equity Variable Account, the Bond and Income
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 schedules of
investments, are included in Section A of this report and should be read in
conjunction with the Separate Account's financial statements.
The Separate Account was established by Pacific Life Insurance Company
(formerly named Pacific Mutual Life Insurance Company - see Note 1 to Financial
Statements of the Fund on A-67) on November 30, 1989 and commenced operations on
July 24, 1990. 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 annuities, are obligations of Pacific Life.
The Separate Account held by Pacific Life represents funds from individual
flexible premium variable accumulation deferred annuity contracts (the
"Contracts"). 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 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 its 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 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, 1998, the Fund has declared
dividends for each portfolio except for the Aggressive Equity 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 portfolio.
3. CHARGES AND EXPENSES
Pacific Life charges the Separate Account daily for mortality and expense
risks assumed with respect to the Contracts funded by the Separate Account at an
annual rate of 1.25% of the average daily net assets of each Variable Account.
Under the Contracts, Pacific Life makes certain deductions from the net assets
of each Variable Account for administrative expenses, contract maintenance, any
state premium taxes, and any surrender charges. The operating expenses of the
Separate Account are paid by Pacific Life.
4. RELATED PARTY AGREEMENT
Pacific Mutual Distributors, Inc., a wholly-owned subsidiary of Pacific Life,
serves as principal underwriter of variable annuity contracts funded by
interests in the Separate Account, without remuneration from the Separate
Account.
B-9
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
5. SELECTED ACCUMULATION UNIT**
INFORMATION
Selected accumulation unit information for the period ended June 30, 1998
were as follows:
<TABLE>
<CAPTION>
Accumulation
Unit Value
---------------- Number
At of Units
Commence- Begin- At Outstanding
Variable ment of ning of End of At End of
Accounts Operations Period Period Period
-------- ---------- ------- ------ -----------
<S> <C> <C> <C> <C>
Money Market 7/24/90 $12.77 $13.03 13,591,362
High Yield Bond 8/16/90 $22.35 $22.83 11,199,352
Managed Bond 9/05/90 $18.00 $18.62 19,986,502
Government Securities 8/22/90 $17.24 $17.81 5,524,618
Growth 8/16/90 $31.34 $33.00 928,652
Aggressive Equity 4/01/96 $10.95 $12.31 9,776,070
Growth LT 1/04/94 $19.27 $25.00 25,497,395
Equity Income 8/16/90 $27.45 $31.52 22,378,956
Multi-Strategy 9/25/90 $23.22 $25.48 9,628,575
Equity 1/04/95 $18.06 $22.24 12,552,122
Bond and Income 1/04/95 $14.86 $15.49 6,329,679
Equity Index 2/11/91 $27.96 $32.66 21,643,961
International 8/16/90 $16.27 $18.65 34,998,750
Emerging Markets 4/01/96 $ 9.31 $ 8.05 9,157,198
</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-10
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
6. SEPARATE ACCOUNT'S COST OF INVESTMENTS 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 charges (M&E). The cost and market value
of total Separate Account's investments in the Fund as of June 30, 1998 were as
follows (amounts in thousands):
<TABLE>
<CAPTION>
Variable Accounts
=================================================================
Govern-
Money High Yield Managed ment
Market Bond Bond Securities Growth
=================================================================
<S> <C> <C> <C> <C> <C>
Total cost of investments at beginning of period $179,669 $234,646 $297,618 $95,760 $23,974
Add: Total net proceeds from policy and M&E transactions 236,265 31,164 51,736 9,011 12,533
Reinvested distributions from the Fund:
(a) Net investment income 4,344 10,051 8,808 2,609
(b) Net realized gain 2,293 4,673 1,867 3,261
-----------------------------------------------------------------
Sub-Total 420,278 278,154 362,835 109,247 39,768
Less: Cost of investments disposed during the period 243,137 20,231 1,789 13,337 15,851
-----------------------------------------------------------------
Total cost of investments at end of period 177,141 257,923 361,046 95,910 23,917
Add: Unrealized appreciation (depreciation) (47) (2,261) 11,098 2,509 6,726
-----------------------------------------------------------------
Total market value of investments at end of period $177,094 $255,662 $372,144 $98,419 $30,643
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Aggressive Growth Equity Multi-
Equity LT Income Strategy Equity
=================================================================
<S> <C> <C> <C> <C> <C>
Total cost of investments at beginning of period $ 89,087 $433,720 $464,329 $171,588 $187,010
Add: Total net proceeds from policy and M&E transactions 31,102 35,299 55,415 32,926 22,218
Reinvested distributions from the Fund:
(a) Net investment income 1,395 2,297 3,180 291
(b) Net realized gain 25,255 74,937 15,920 15,245
-----------------------------------------------------------------
Sub-Total 120,189 495,669 596,978 223,614 224,764
Less: Cost of investments disposed during the period 17,045 29,659 16,421 4,079 7,513
-----------------------------------------------------------------
Total cost of investments at end of period 103,144 466,010 580,557 219,535 217,251
Add: Unrealized appreciation 17,237 171,526 124,768 25,799 61,872
-----------------------------------------------------------------
Total market value of investments at end of period $120,381 $637,536 $705,325 $245,334 $279,123
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Bond and Equity Inter- Emerging
Income Index national Markets
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<S> <C> <C> <C> <C>
Total cost of investments at beginning of period $72,137 $453,261 $490,322 $79,664
Add: Total net proceeds from policy and M&E transactions 19,320 79,741 179,142 12,118
Reinvested distributions from the Fund:
(a) Net investment income 2,756 4,321 3,421 125
(b) Net realized gain 161 5,094 43,782
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Sub-Total 94,374 542,417 716,667 91,907
Less: Cost of investments disposed during the period 2,968 29,492 131,280 3,494
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Total cost of investments at end of period 91,406 512,925 585,387 88,413
Add: Unrealized appreciation (depreciation) 6,645 194,027 67,499 (14,692)
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Total market value of investments at end of period $98,051 $706,952 $652,886 $73,721
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</TABLE>
B-11
