<PAGE>
Annual Report
. Pacific Select Variable Annuity Separate Account of Pacific Life Insurance
Company
[LOGO OF PACIFIC SELECT VARIABLE ANNUITY]
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Pacific Life Insurance Company
We have audited the accompanying statement of assets and liabilities of
Pacific Select Variable Annuity Separate Account (comprised of the Money
Market, High Yield Bond, Managed Bond, Government Securities, Growth,
Aggressive Equity, Growth LT, Equity Income, Multi-Strategy, Equity, Bond and
Income, Equity Index, International and Emerging Markets Variable Accounts) as
of December 31, 1998 and the related statement of operations for the year then
ended and statement of changes in net assets for each of the two years then
ended. These financial statements are the responsibility of the Separate
Account's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of each of the respective Variable Accounts
constituting Pacific Select Variable Annuity Separate Account as of December
31, 1998 and the results of their operations for the year then ended and the
changes in their net assets for each of the two years then ended, in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Costa Mesa, California
February 5, 1999
C-1
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
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>
ASSETS
Investments in Pacific
Select Fund:
Money Market Portfolio
(18,539 shares; cost
$186,417).............. $186,403
High Yield Bond
Portfolio (25,679
shares; cost $250,343). $239,765
Managed Bond Portfolio
(36,031 shares; cost
$390,953).............. $410,519
Government Securities
Portfolio (10,442
shares; cost $109,489). $114,641
Growth Portfolio (1,096
shares; cost $19,127).. $25,120
Aggressive Equity
Portfolio (10,196
shares; cost $109,664). $129,051
Growth LT Portfolio
(29,270 shares; cost
$464,350).............. $766,937
Receivables:
Due from Pacific Life
Insurance Company...... 1,803 1,870 156
Fund shares redeemed... 243 70 14 2,768
------------------------------------------------------------------
Total Assets............ 186,646 241,568 412,389 114,797 25,190 129,065 769,705
------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 243 70 14 2,768
Fund shares purchased.. 1,803 1,870 156
------------------------------------------------------------------
Total Liabilities....... 243 1,803 1,870 156 70 14 2,768
------------------------------------------------------------------
NET ASSETS.............. $186,403 $239,765 $410,519 $114,641 $25,120 $129,051 $766,937
------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-2
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
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>
ASSETS
Investments in Pacific
Select Fund:
Equity Income Portfolio
(28,102 shares; cost
$579,994).............. $755,708
Multi-Strategy
Portfolio (16,155
shares; cost $238,987). $279,829
Equity Portfolio
(10,195 shares; cost
$221,937).............. $298,417
Bond and Income
Portfolio (7,929
shares; cost $97,798).. $105,461
Equity Index Portfolio
(23,852 shares; cost
$521,034).............. $771,780
International Portfolio
(37,945 shares; cost
$578,748).............. $599,617
Emerging Markets
Portfolio (9,855
shares; cost $92,536).. $67,480
Receivables:
Due from Pacific Life
Insurance Company...... 1,010 291 551
Fund shares redeemed... 1,399 605 851 199
--------------------------------------------------------------
Total Assets............ 757,107 280,839 299,022 105,752 772,631 600,168 67,679
--------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 1,399 605 851 199
Fund shares purchased.. 1,010 291 551
--------------------------------------------------------------
Total Liabilities....... 1,399 1,010 605 291 851 551 199
--------------------------------------------------------------
NET ASSETS.............. $755,708 $279,829 $298,417 $105,461 $771,780 $599,617 $67,480
--------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-3
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
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>
INVESTMENT INCOME
Dividends.............. $9,411 $22,178 $23,877 $7,165 $3,289 $38 $26,650
EXPENSES
Mortality and expense
risk fee............... 2,324 3,071 4,587 1,313 361 1,389 7,437
--------------------------------------------------------------------
Net Investment Income
(Loss).................. 7,087 19,107 19,290 5,852 2,928 (1,351) 19,213
--------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
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 Realized and
Unrealized Gain
(Loss) on Investments... 186 (16,059) 8,550 1,925 (2,797) 13,648 255,471
--------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS......... $7,273 $3,048 $27,840 $7,777 $131 $12,297 $274,684
--------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-4
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (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>
INVESTMENT INCOME
Dividends.............. $80,478 $22,532 $16,112 $5,706 $13,902 $49,739 $806
EXPENSES
Mortality and expense
risk fee............... 8,327 2,948 3,210 1,172 8,342 7,527 900
----------------------------------------------------------------
Net Investment Income
(Loss).................. 72,151 19,584 12,902 4,534 5,560 42,212 (94)
----------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
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 Realized and
Unrealized Gain
(Loss) on Investments... 64,390 17,334 50,625 2,329 152,411 (17,736) (22,851)
----------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS......... $136,541 $36,918 $63,527 $6,863 $157,971 $24,476 $(22,945)
----------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-5
<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 As-
sets 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 Transac-
tions................... (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-6
<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-7
<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
C-8
<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
C-9
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
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 during 1998 was 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 B 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 B-58) 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 1998, the Fund declared dividends for each 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-10
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
5. SELECTED ACCUMULATION UNIT**
INFORMATION
Selected accumulation unit information for the year ended December 31, 1998
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
<C> <S> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Money
Market 7/24/90 $12.77 $13.28 14,031,831
- -----------------------------------------------------------------------------------------
High Yield
Bond 8/16/90 22.35 22.62 10,599,470
- -----------------------------------------------------------------------------------------
Managed
Bond 9/05/90 18.00 19.42 21,143,468
- -----------------------------------------------------------------------------------------
Government
Securities 8/22/90 17.24 18.60 6,164,020
- -----------------------------------------------------------------------------------------
Growth 8/16/90 31.34 31.78 790,323
- -----------------------------------------------------------------------------------------
Aggressive
Equity 4/01/96 10.95 12.25 10,535,854
- -----------------------------------------------------------------------------------------
Growth LT 1/04/94 19.27 30.13 25,453,009
- -----------------------------------------------------------------------------------------
Equity
Income 8/16/90 27.45 33.66 22,451,064
- -----------------------------------------------------------------------------------------
Multi-
Strategy 9/25/90 23.22 27.10 10,327,173
- -----------------------------------------------------------------------------------------
Equity 1/04/95 18.06 23.24 12,842,016
- -----------------------------------------------------------------------------------------
Bond and
Income 1/04/95 14.86 16.00 6,592,827
- -----------------------------------------------------------------------------------------
Equity
Index 2/11/91 27.96 35.47 21,758,653
- -----------------------------------------------------------------------------------------
International 8/16/90 16.27 16.96 35,347,056
- -----------------------------------------------------------------------------------------
Emerging
Markets 4/01/96 9.31 6.73 10,031,439
- -----------------------------------------------------------------------------------------
</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-11
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
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
December 31, 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 year $179,669 $234,646 $297,618 $95,760 $23,974
Add: Total net proceeds
from policy and M&E
transactions 500,951 55,037 87,467 46,899 18,907
Reinvested distributions
from the Fund:
(a) Net investment income 9,411 19,885 19,204 5,298 28
(b) Net realized gain 2,293 4,673 1,867 3,261
--------------------------------------------------
Sub-Total 690,031 311,861 408,962 149,824 46,170
Less: Cost of investments
disposed during the year 503,614 61,518 18,009 40,335 27,043
--------------------------------------------------
Total cost of investments
at end of year 186,417 250,343 390,953 109,489 19,127
Add: Unrealized apprecia-
tion (depreciation) (14) (10,578) 19,566 5,152 5,993
--------------------------------------------------
Total market value of in-
vestments at end of year $186,403 $239,765 $410,519 $114,641 $25,120
--------------------------------------------------
<CAPTION>
Aggressive Growth Equity Multi-
Equity LT Income Strategy Equity
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total cost of investments
at beginning of year $89,087 $433,720 $464,329 $171,588 $187,010
Add: Total net proceeds
from policy and M&E
transactions 51,319 84,076 94,071 56,225 45,856
Reinvested distributions
from the Fund:
(a) Net investment income 38 1,395 5,542 6,612 867
(b) Net realized gain 25,255 74,936 15,920 15,245
--------------------------------------------------
Sub-Total 140,444 544,446 638,878 250,345 248,978
Less: Cost of investments
disposed during the year 30,780 80,096 58,884 11,358 27,041
--------------------------------------------------
Total cost of investments
at end of year 109,664 464,350 579,994 238,987 221,937
Add: Unrealized apprecia-
tion 19,387 302,587 175,714 40,842 76,480
--------------------------------------------------
Total market value of in-
vestments at end of year $129,051 $766,937 $755,708 $279,829 $298,417
--------------------------------------------------
<CAPTION>
Bond and Equity Inter- Emerging
Income Index national Markets
-----------------------------------------
<S> <C> <C> <C> <C>
Total cost of investments
at beginning of year $72,137 $453,261 $490,322 $79,664
Add: Total net proceeds
from policy and M&E
transactions 32,424 143,223 349,412 21,284
Reinvested distributions
from the Fund:
(a) Net investment income 5,545 8,808 5,957 806
(b) Net realized gain 161 5,094 43,782
-----------------------------------------
Sub-Total 110,267 610,386 889,473 101,754
Less: Cost of investments
disposed during the year 12,469 89,352 310,725 9,218
-----------------------------------------
Total cost of investments
at end of year 97,798 521,034 578,748 92,536
Add: Unrealized apprecia-
tion (depreciation) 7,663 250,746 20,869 (25,056)
-----------------------------------------
Total market value of in-
vestments at end of year $105,461 $771,780 $599,617 $67,480
-----------------------------------------
</TABLE>
C-12
