<PAGE>
June 30, 1999 . Pacific Select Fund
. Pacific Select Variable Annuity
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-3
Statements of Changes in Net Assets.............................. B-5
Financial Highlights............................................... B-9
Schedules of Investments and Notes................................. B-13
Notes to Financial Statements...................................... B-80
Special Meeting of Shareholders.................................... B-86
<CAPTION>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
<S> <C>
Financial Statements:
Statement of Assets and Liabilities.............................. C-1
Statement of Operations.......................................... C-3
Statement of Changes in Net Assets............................... C-5
Notes to Financial Statements...................................... C-9
</TABLE>
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity Multi-
Market Bond Bond Securities Growth Equity LT Income Strategy
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific
Select Fund:
Money Market Portfolio
(21,145 shares; cost
$212,637)............. $212,876
High Yield Bond
Portfolio
(24,371 shares; cost
$234,637)............. $220,305
Managed Bond Portfolio
(37,413 shares; cost
$405,036)............. $395,295
Government Securities
Portfolio
(14,950 shares; cost
$157,044)............ $154,098
Growth Portfolio
(998 shares; cost
$17,519).............. $23,236
Aggressive Equity
Portfolio
(10,901 shares; cost
$118,759)............ $141,352
Growth LT Portfolio
(31,290 shares; cost
$530,465)............. $1,005,937
Equity Income Portfolio
(28,918 shares; cost
$603,514)............. $811,314
Multi-Strategy
Portfolio
(15,690 shares; cost
$231,106)............. $270,910
Receivables:
Due from Pacific Life
Insurance Company...... 528 190 36
Fund shares redeemed.... 7,515 248 141 457 319 135
--------------------------------------------------------------------------------------
Total Assets.............. 220,391 220,553 395,823 154,288 23,377 141,388 1,006,394 811,633 271,045
--------------------------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 7,515 248 141 457 319 135
Fund shares purchased... 528 190 36
--------------------------------------------------------------------------------------
Total Liabilities......... 7,515 248 528 190 141 36 457 319 135
--------------------------------------------------------------------------------------
NET ASSETS................ $212,876 $220,305 $395,295 $154,098 $23,236 $141,352 $1,005,937 $811,314 $270,910
--------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-1
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Large-Cap Mid-Cap Bond and Equity Small-Cap Inter- Emerging
Value Value Equity Income Index Index REIT national Markets
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific
Select Fund:
Large-Cap Value
Portfolio
(2,914 shares; cost
$32,060)............... $33,667
Mid-Cap Value Portfolio
(1,994 shares; cost
$21,674)............... $22,327
Equity Portfolio
(10,639 shares; cost
$235,202).............. $327,265
Bond and Income
Portfolio
(7,119 shares; cost
$86,471)............... $82,987
Equity Index Portfolio
(23,506 shares; cost
$511,074).............. $843,746
Small-Cap Index
Portfolio
(1,677 shares; cost
$17,172)............... $18,119
REIT Portfolio
(1,297 shares; cost
$13,975)............... $13,993
International Portfolio
(41,451 shares; cost
$620,415).............. $650,724
Emerging Markets
Portfolio
(9,905 shares; cost
$88,875)............... $87,952
Receivables:
Due from Pacific Life
Insurance Company...... 73 212 117 82 51 6,072 757
Fund shares redeemed.... 97 27
----------------------------------------------------------------------------------
Total Assets............. 33,740 22,424 327,477 83,104 843,828 18,170 14,020 656,796 88,709
----------------------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 97 27
Fund shares purchased... 73 212 117 82 51 6,072 757
----------------------------------------------------------------------------------
Total Liabilities........ 73 97 212 117 82 51 27 6,072 757
----------------------------------------------------------------------------------
NET ASSETS............... $33,667 $22,327 $327,265 $82,987 $843,746 $18,119 $13,993 $650,724 $87,952
----------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-2
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity Multi-
Market Bond Bond Securities Growth Equity LT Income Strategy
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $4,471 $9,537 $20,417 $5,045 $2,587 $13,598 $76,144 $65,371 $19,395
EXPENSES
Mortality and expense
risk fee.............. 1,293 1,485 2,548 766 141 843 5,422 4,795 1,723
-------------------------------------------------------------------------------------
Net Investment Income... 3,178 8,052 17,869 4,279 2,446 12,755 70,722 60,576 17,672
-------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions.......... 24 (3,564) (1,117) (111) 800 322 3,827 4,623 1,733
Net unrealized
appreciation
(depreciation) on
investments........... 253 (3,754) (29,307) (8,098) (276) 3,206 172,885 32,086 (1,038)
-------------------------------------------------------------------------------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 277 (7,318) (30,424) (8,209) 524 3,528 176,712 36,709 695
-------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS............. $3,455 $734 ($12,555) ($3,930) $2,970 $16,283 $247,434 $97,285 $18,367
-------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-3
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Large-Cap Mid-Cap Bond and Equity Small-Cap Inter- Emerging
Value Value Equity Income Index Index REIT national Markets
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account (1) Account (1) Account Account Account Account (1) Account (1) Account Account
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $12 $23,280 $6,571 $8,240 $3 $70 $28,549 $159
EXPENSES
Mortality and expense
risk fee.............. 53 $40 1,964 621 4,975 38 26 3,730 473
----------------------------------------------------------------------------------------------
Net Investment Income
(Loss)................. (41) (40) 21,316 5,950 3,265 (35) 44 24,819 (314)
----------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions.......... (6) (3) 857 (1,238) 1,255 (69) (8) (10,888) (3,672)
Net unrealized
appreciation
(depreciation) on
investments........... 1,607 653 15,583 (11,147) 81,926 947 18 9,440 24,133
----------------------------------------------------------------------------------------------
Net Realized and
Unrealized Gain (Loss)
on Investments......... 1,601 650 16,440 (12,385) 83,181 878 10 (1,448) 20,461
----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS............. $1,560 $610 $37,756 ($6,435) $86,446 $843 $54 $23,371 $20,147
----------------------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 1999 (see Note 1 to Financial Statements).
See Notes to Financial Statements
C-4
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth Equity Multi-
Market Bond Bond Securities Growth Equity LT Income Strategy
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income........ $3,178 $8,052 $17,869 $4,279 $2,446 $12,755 $70,722 $60,576 $17,672
Net realized gain (loss)
from security
transactions................ 24 (3,564) (1,117) (111) 800 322 3,827 4,623 1,733
Net unrealized
appreciation
(depreciation)
on investments.............. 253 (3,754) (29,307) (8,098) (276) 3,206 172,885 32,086 (1,038)
--------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from Opera-
tions........................ 3,455 734 (12,555) (3,930) 2,970 16,283 247,434 97,285 18,367
--------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM POLICY TRANSACTIONS
Transfer of net
premiums.................... 33,750 6,776 15,909 3,555 139 5,581 28,323 22,442 8,159
Transfers--policy
charges and deductions...... (4,269) (2,025) (2,959) (1,021) (380) (573) (6,212) (4,807) (2,203)
Transfers in (from other
variable accounts).......... 455,062 45,898 54,720 62,025 1,654 30,664 135,791 55,985 21,528
Transfers out (to other
variable accounts).......... (442,119) (63,937) (60,693) (16,958) (4,142) (35,103) (141,691) (94,457) (46,672)
Transfers--other............. (19,406) (6,906) (9,646) (4,214) (2,125) (4,551) (24,645) (20,842) (8,098)
--------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy Transactions..... 23,018 (20,194) (2,669) 43,387 (4,854) (3,982) (8,434) (41,679) (27,286)
--------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS................ 26,473 (19,460) (15,224) 39,457 (1,884) 12,301 239,000 55,606 (8,919)
--------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period.......... 186,403 239,765 410,519 114,641 25,120 129,051 766,937 755,708 279,829
--------------------------------------------------------------------------------------------
End of Period................ $212,876 $220,305 $395,295 $154,098 $23,236 $141,352 $1,005,937 $811,314 $270,910
--------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-5
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Large-Cap Mid-Cap Bond and Equity Small-Cap Inter- Emerging
Value Value Equity Income Index Index REIT national Markets
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account (1) Account (1) Account Account Account Account (1) Account (1) Account Account
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss).................... ($41) ($40) $21,316 $5,950 $3,265 ($35) $44 $24,819 ($314)
Net realized gain
(loss) from security
transactions.............. (6) (3) 857 (1,238) 1,255 (69) (8) (10,888) (3,672)
Net unrealized
appreciation
(depreciation)
on investments............ 1,607 653 15,583 (11,147) 81,926 947 18 9,440 24,133
------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations................. 1,560 610 37,756 (6,435) 86,446 843 54 23,371 20,147
------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums.................. 931 795 12,472 3,149 23,297 735 403 17,539 2,460
Transfers--policy
charges and deductions.... (9) (12) (1,834) (790) (4,782) (15) (9) (3,189) (459)
Transfers in (from
other variable
accounts)................. 33,465 21,923 37,120 12,514 91,706 21,265 14,619 282,249 24,749
Transfers out (to other
variable accounts)........ (2,040) (808) (49,260) (28,887) (104,663) (4,529) (977) (252,794) (24,799)
Transfers--other........... (240) (181) (7,406) (2,025) (20,038) (180) (97) (16,069) (1,626)
------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy Transactions... 32,107 21,717 (8,908) (16,039) (14,480) 17,276 13,939 27,736 325
------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS.............. 33,667 22,327 28,848 (22,474) 71,966 18,119 13,993 51,107 20,472
------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period........ 298,417 105,461 771,780 599,617 67,480
------------------------------------------------------------------------------------------------
End of Period.............. $33,667 $22,327 $327,265 $82,987 $843,746 $18,119 $13,993 $650,724 $87,952
------------------------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 1999 (see Note 1 to Financial Statements).
See Notes to Financial Statements
C-6
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
(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)................... $7,087 $19,107 $19,290 $5,852 $2,928 ($1,351) $19,213
Net realized gain
(loss) from security
transactions............. 290 (2,130) (45) 246 844 (594) 6,226
Net unrealized
appreciation
(depreciation) on
investments.............. (104) (13,929) 8,595 1,679 (3,641) 14,242 249,245
----------------------------------------------------------------------
Net Increase in Net
Assets Resulting from
Operations............... 7,273 3,048 27,840 7,777 131 12,297 274,684
----------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums................. 122,985 25,852 44,796 11,336 268 12,309 47,975
Transfers--policy
charges and deductions... (4,690) (3,455) (6,534) (1,572) (1,727) (1,370) (6,138)
Transfers in (from
other variable
accounts)................ 750,262 83,681 114,652 63,653 22,124 70,732 161,850
Transfers out (to other
variable accounts)....... (845,842) (96,843) (64,538) (58,438) (26,174) (55,303) (173,187)
Transfers--other.......... (23,344) (10,515) (14,286) (7,348) (3,110) (3,846) (25,309)
----------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy Transactions.. (629) (1,280) 74,090 7,631 (8,619) 22,522 5,191
----------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS............. 6,644 1,768 101,930 15,408 (8,488) 34,819 279,875
----------------------------------------------------------------------
NET ASSETS
Beginning of Year......... 179,759 237,997 308,589 99,233 33,608 94,232 487,062
----------------------------------------------------------------------
End of Year............... $186,403 $239,765 $410,519 $114,641 $25,120 $129,051 $766,937
----------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-7
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1998
(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).................... $72,151 $19,584 $12,902 $4,534 $5,560 $42,212 ($94)
Net realized gain
(loss) from security
transactions.............. 1,495 503 432 170 11,175 10,390 (2,090)
Net unrealized
appreciation
(depreciation) on
investments............... 62,895 16,831 50,193 2,159 141,236 (28,126) (20,761)
--------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations............ 136,541 36,918 63,527 6,863 157,971 24,476 (22,945)
--------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net premiums... 66,344 25,828 25,280 10,876 72,157 50,055 7,674
Transfers--policy
charges and deductions.... (8,526) (4,163) (2,406) (1,767) (7,020) (7,345) (617)
Transfers in (from other
variable accounts)......... 144,490 71,299 72,095 40,553 215,168 421,709 32,870
Transfers out (to other
variable accounts)........ (130,415) (34,651) (62,814) (24,956) (199,371) (406,234) (22,781)
Transfers--other........... (29,875) (11,000) (10,562) (3,748) (29,897) (22,361) (2,090)
--------------------------------------------------------------------
Net Increase in Net
Assets Derived from
Policy Transactions........ 42,018 47,313 21,593 20,958 51,037 35,824 15,056
--------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS.............. 178,559 84,231 85,120 27,821 209,008 60,300 (7,889)
--------------------------------------------------------------------
NET ASSETS
Beginning of Year.......... 577,149 195,598 213,297 77,640 562,772 539,317 75,369
--------------------------------------------------------------------
End of Year................ $755,708 $279,829 $298,417 $105,461 $771,780 $599,617 $67,480
--------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-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 eighteen 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 Large-Cap Value Variable Account, the Mid-Cap
Value Variable Account, the Equity Variable Account, the Bond and Income
Variable Account, the Equity Index Variable Account, the Small-Cap Index
Variable Account, the REIT 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 B of this report and should
be read in conjunction with the Separate Account's financial statements.
The Separate Account has organized and registered with the Securities and
Exchange Commission four new Variable Accounts: the Large-Cap Value Variable
Account, the Mid-Cap Value Variable Account, the Small-Cap Index Variable
Account, and the REIT Variable Account. The Large-Cap Value Variable Account,
the Mid-Cap Value Variable Account, and the Small-Cap Index Variable Account
commenced operations on January 4, 1999, and the REIT Variable Account
commenced operations on January 6, 1999.
The Separate Account was established by Pacific Life Insurance Company
("Pacific Life") 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, 1999, the Fund declared dividends
for each portfolio except for the Mid-Cap Value 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.
C-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, 1999 were
as follows:
<TABLE>
<CAPTION>
------------
Accumulation
Unit Value
- -----------------------------------------------------------------------------------------
Number of
At 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 $ 13.28 $13.51 15,762,006
- -----------------------------------------------------------------------------------------
High Yield
Bond 8/16/90 22.62 22.66 9,723,363
- -----------------------------------------------------------------------------------------
Managed Bond 9/05/90 19.42 18.83 20,992,740
- -----------------------------------------------------------------------------------------
Government
Securities 8/22/90 18.60 18.03 8,548,579
- -----------------------------------------------------------------------------------------
Growth 8/16/90 31.78 36.37 638,930
- -----------------------------------------------------------------------------------------
Aggressive
Equity 4/01/96 12.25 13.81 10,231,921
- -----------------------------------------------------------------------------------------
Growth LT 1/04/94 30.13 40.01 25,142,795
- -----------------------------------------------------------------------------------------
Equity Income 8/16/90 33.66 38.10 21,296,561
- -----------------------------------------------------------------------------------------
Multi-
Strategy 9/25/90 27.10 28.92 9,368,093
- -----------------------------------------------------------------------------------------
Large-Cap
Value 1/04/99 10.00 11.49 2,930,588
- -----------------------------------------------------------------------------------------
Mid-Cap Value 1/04/99 10.00 11.13 2,005,312
- -----------------------------------------------------------------------------------------
Equity 1/04/95 23.24 26.22 12,479,164
- -----------------------------------------------------------------------------------------
Bond and
Income 1/04/95 16.00 14.98 5,538,397
- -----------------------------------------------------------------------------------------
Equity Index 2/11/91 35.47 39.51 21,354,883
- -----------------------------------------------------------------------------------------
Small-Cap
Index 1/04/99 10.00 10.74 1,686,720
- -----------------------------------------------------------------------------------------
REIT 1/06/99 10.00 10.76 1,300,225
- -----------------------------------------------------------------------------------------
International 8/16/90 16.96 17.59 37,003,300
- -----------------------------------------------------------------------------------------
Emerging
Markets 4/01/96 6.73 8.69 10,125,779
- -----------------------------------------------------------------------------------------
</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.
C-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, 1999
were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Variable Accounts
-----------------------------------------------------------------
Govern-
Money High Yield Managed ment Aggressive
Market Bond Bond Securities Growth Equity
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $186,417 $250,343 $390,953 $109,489 $19,127 $109,664
Add: Total net proceeds
from policy and M&E
transactions 300,943 26,317 26,998 49,168 1,497 17,316
Reinvested distribu-
tions from the Fund:
(a) Net investment in-
come 4,471 9,537 11,008 3,080
(b) Net realized gain 9,409 1,965 2,587 13,598
-----------------------------------------------------------------
Sub-Total 491,831 286,197 438,368 163,702 23,211 140,578
Less: Cost of investments
disposed during the
period 279,194 51,560 33,332 6,658 5,692 21,819
-----------------------------------------------------------------
Total cost of invest-
ments at end of period 212,637 234,637 405,036 157,044 17,519 118,759
Add: Unrealized apprecia-
tion (depreciation) 239 (14,332) (9,741) (2,946) 5,717 22,593
-----------------------------------------------------------------
Total market value of
investments at end of
period $212,876 $220,305 $395,295 $154,098 $23,236 $141,352
-----------------------------------------------------------------
<CAPTION>
Growth Equity Multi- Large-Cap Mid-Cap
LT Income Strategy Value (1) Value (1) Equity
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $464,350 $579,994 $238,987 $221,937
Add: Total net proceeds
from policy and M&E
transactions 44,475 19,328 7,021 $32,518 $21,897 14,657
Reinvested distribu-
tions from the Fund:
(a) Net investment
income 2,475 3,234 12 126
(b) Net realized gain 76,144 62,896 16,161 23,154
-----------------------------------------------------------------
Sub-Total 584,969 664,693 265,403 32,530 21,897 259,874
Less: Cost of investments
disposed during the
period 54,504 61,179 34,297 470 223 24,672
-----------------------------------------------------------------
Total cost of invest-
ments at end of period 530,465 603,514 231,106 32,060 21,674 235,202
Add: Unrealized
appreciation 475,472 207,800 39,804 1,607 653 92,063
-----------------------------------------------------------------
Total market value of
investments at end of
period $1,005,937 $811,314 $270,910 $33,667 $22,327 $327,265
-----------------------------------------------------------------
<CAPTION>
Bond and Equity Small-Cap Inter- Emerging
Income Index Index (1) REIT (1) national Markets
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $97,798 $521,034 $578,748 $92,536
Add: Total net proceeds
from policy and M&E
transactions 5,508 43,761 $20,579 $14,192 228,180 12,998
Reinvested distribu-
tions from the Fund:
(a) Net investment in-
come 2,839 4,580 3 70 4,629 159
(b) Net realized gain 3,732 3,660 23,920
-----------------------------------------------------------------
Sub-Total 109,877 573,035 20,582 14,262 835,477 105,693
Less: Cost of investments
disposed during the
period 23,406 61,961 3,410 287 215,062 16,818
-----------------------------------------------------------------
Total cost of invest-
ments at end of period 86,471 511,074 17,172 13,975 620,415 88,875
Add: Unrealized apprecia-
tion (depreciation) (3,484) 332,672 947 18 30,309 (923)
-----------------------------------------------------------------
Total market value of
investments at end of
period $82,987 $843,746 $18,119 $13,993 $650,724 $87,952
-----------------------------------------------------------------
</TABLE>
- --------------------
(1) Operations commenced during 1999 (See Note 1 to Financial Statements).
C-11
