<PAGE>
June 30, 2000 . 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-4
Statements of Changes in Net Assets............................... B-7
Financial Highlights................................................ C-1
Schedules of Investments ........................................... D-1
Notes to Financial Statements....................................... E-1
Special Meeting of Shareholders..................................... F-1
<CAPTION>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
<S> <C>
Financial Statements:
Statement of Assets and Liabilities............................... G-1
Statement of Operations........................................... G-4
Statement of Changes in Net Assets................................ G-7
Notes to Financial Statements....................................... H-1
</TABLE>
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Diversified Small-Cap International Bond and
Equity Markets Research Equity Large-Cap Income Equity
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account (1) Account Account Account
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Aggressive Equity
Portfolio.............. $139,595
Emerging Markets
Portfolio.............. $83,556
Diversified Research
Portfolio.............. $16,551
Small-Cap Equity
Portfolio (1).......... $93,211
International Large-Cap
Portfolio.............. $78,729
Bond and Income
Portfolio.............. $68,429
Equity Portfolio....... $388,218
Receivables:
Due from Pacific Life
Insurance Company...... 107 22 261
Fund shares redeemed... 3 46 52 97
---------------------------------------------------------------------------
Total Assets............ 139,702 83,559 16,573 93,257 78,990 68,481 388,315
---------------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 3 46 52 97
Fund shares purchased.. 107 22 261
---------------------------------------------------------------------------
Total Liabilities....... 107 3 22 46 261 52 97
---------------------------------------------------------------------------
NET ASSETS.............. $139,595 $83,556 $16,551 $93,211 $78,729 $68,429 $388,218
---------------------------------------------------------------------------
Shares Owned in each
Portfolio............... 10,891 8,697 1,488 3,222 8,398 6,061 11,142
---------------------------------------------------------------------------
Cost of Investments..... $118,323 $74,902 $16,113 $83,031 $78,617 $71,872 $252,944
---------------------------------------------------------------------------
</TABLE>
(1) Formerly named Growth Portfolio and Growth Variable Account.
See Notes to Financial Statements
G-1
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
I-Net Multi- Equity Mid-Cap Equity Small-Cap
Tollkeeper Strategy Income Growth LT Value Index Index
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
I-Net Tollkeeper
Portfolio.............. $21,316
Multi-Strategy
Portfolio.............. $231,031
Equity Income
Portfolio.............. $750,856
Growth LT Portfolio.... $1,411,357
Mid-Cap Value
Portfolio.............. $39,720
Equity Index Portfolio. $847,538
Small-Cap Index
Portfolio.............. $29,037
Receivables:
Due from Pacific Life
Insurance Company...... 253 450 31 10
Fund shares redeemed... 14 39 40
-------------------------------------------------------------------
Total Assets............ 21,330 231,070 751,109 1,411,807 39,751 847,578 29,047
-------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 14 39 40
Fund shares purchased.. 253 450 31 10
-------------------------------------------------------------------
Total Liabilities....... 14 39 253 450 31 40 10
-------------------------------------------------------------------
NET ASSETS.............. $21,316 $231,031 $750,856 $1,411,357 $39,720 $847,538 $29,037
-------------------------------------------------------------------
Shares Owned in each
Portfolio............... 2,092 14,801 30,121 36,174 3,570 22,550 2,435
-------------------------------------------------------------------
Cost of Investments..... $20,320 $215,040 $629,318 $723,244 $37,701 $484,428 $25,152
-------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
G-2
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
International Government Managed Money High Yield Large-Cap
REIT Value Securities Bond Market Bond Value
Variable Variable Variable Variable Variable Variable Variable
Account Account (1) Account Account Account Account Account
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
REIT Portfolio......... $25,752
International Value
Portfolio (1).......... $664,056
Government Securities
Portfolio.............. $144,501
Managed Bond Portfolio. $388,636
Money Market Portfolio. $191,379
High Yield Bond
Portfolio.............. $187,798
Large-Cap Value
Portfolio.............. $25,455
Receivables:
Due from Pacific Life
Insurance Company...... 8,826 20
Fund shares redeemed... 12 112 9,491 122
------------------------------------------------------------------------
Total Assets............ 25,764 672,882 144,521 388,748 200,870 187,920 25,455
------------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific Life
Insurance Company...... 12 112 9,491 122
Fund shares purchased.. 8,826 20
------------------------------------------------------------------------
Total Liabilities....... 12 8,826 20 112 9,491 122
------------------------------------------------------------------------
NET ASSETS.............. $25,752 $664,056 $144,501 $388,636 $191,379 $187,798 $25,455
------------------------------------------------------------------------
Shares Owned in each
Portfolio .............. 2,332 38,008 14,101 37,168 18,975 22,619 2,121
------------------------------------------------------------------------
Cost of Investments..... $24,317 $567,289 $146,245 $398,349 $190,783 $210,240 $22,846
------------------------------------------------------------------------
</TABLE>
(1) Formerly named International Portfolio and International Variable Account.
See Notes to Financial Statements
G-3
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Diversified Small-Cap International Bond and
Equity Markets Research Equity Large-Cap Income Equity
Variable Variable Variable Variable Variable Variable Variable
Account Account Account (1) Account (2) Account (1) Account Account
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $4,851 $42 $6,060 $2,392 $25,300
EXPENSES
Mortality and expense
risk fee............... 978 578 $41 414 $186 452 2,376
----------------------------------------------------------------------------
Net Investment Income
(Loss).................. 3,873 (536) (41) 5,646 (186) 1,940 22,924
----------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions........... 2,372 (300) (20) (1,641) (26) (1,714) 955
Net unrealized
appreciation
(depreciation) on
investments ........... (20,858) (7,384) 438 (2,883) 112 2,837 (27,030)
----------------------------------------------------------------------------
Net Realized and
Unrealized Gain (Loss)
on Investments ......... (18,486) (7,684) 418 (4,524) 86 1,123 (26,075)
----------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING
FROM OPERATIONS......... ($14,613) ($8,220) $377 $1,122 ($100) $3,063 ($3,151)
----------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
(2) Formerly named Growth Variable Account.
See Notes to Financial Statements
G-4
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
I-Net Multi- Equity Mid-Cap Equity Small-Cap
Tollkeeper Strategy Income Growth LT Value Index Index
Variable Variable Variable Variable Variable Variable Variable
Account (1) Account Account Account Account Account Account
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $20,609 $66,992 $217,705 $497 $13,343 $217
EXPENSES
Mortality and expense
risk fee............... $35 1,495 4,736 9,427 213 5,265 208
-----------------------------------------------------------------------
Net Investment Income
(Loss).................. (35) 19,114 62,256 208,278 284 8,078 9
-----------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions........... (56) 489 53 11,301 (201) 2,758 (1,639)
Net unrealized
appreciation
(depreciation) on
investments ........... 996 (19,277) (77,265) (267,896) 2,242 (21,525) 490
-----------------------------------------------------------------------
Net Realized and
Unrealized Gain (Loss)
on Investments.......... 940 (18,788) (77,212) (256,595) 2,041 (18,767) (1,149)
-----------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING
FROM OPERATIONS......... $905 $326 ($14,956) ($48,317) $2,325 ($10,689) ($1,140)
-----------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
See Notes to Financial Statements
G-5
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
International Government Managed Money High Yield Large-Cap
REIT Value Securities Bond Market Bond Value
Variable Variable Variable Variable Variable Variable Variable
Account Account (1) Account Account Account Account Account
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.............. $257 $18,597 $4,109 $11,792 $6,327 $9,103 $229
EXPENSES
Mortality and expense
risk fee............... 128 4,233 932 2,356 1,422 1,196 211
-------------------------------------------------------------------------
Net Investment Income .. 129 14,364 3,177 9,436 4,905 7,907 18
-------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain
(loss) from security
transactions........... (96) 8,705 (1,698) (2,404) 88 (4,960) 771
Net unrealized
appreciation
(depreciation) on
investments............ 3,038 (44,792) 3,790 7,216 126 (6,600) 1,991
-------------------------------------------------------------------------
Net Realized and
Unrealized Gain (Loss)
on Investments.......... 2,942 (36,087) 2,092 4,812 214 (11,560) 2,762
-------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS......... $3,071 ($21,723) $5,269 $14,248 $5,119 ($3,653) $2,780
-------------------------------------------------------------------------
</TABLE>
(1) Formerly named International Variable Account.
See Notes to Financial Statements
G-6
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Diversified Small-Cap International Bond and
Equity Markets Research Equity Large-Cap Income Equity
Variable Variable Variable Variable Variable Variable Variable
Account Account Account (1) Account (2) Account (1) Account Account
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS
Net investment income
(loss) ................ $3,873 ($536) ($41) $5,646 ($186) $1,940 $22,924
Net realized gain
(loss) from security
transactions........... 2,372 (300) (20) (1,641) (26) (1,714) 955
Net unrealized
appreciation
(depreciation) on
investments............ (20,858) (7,384) 438 (2,883) 112 2,837 (27,030)
------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... (14,613) (8,220) 377 1,122 (100) 3,063 (3,151)
------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM POLICY
TRANSACTIONS
Transfer of net
premiums............... 5,092 2,479 452 2,898 2,025 911 8,288
Transfers between
variable accounts, net. (16,699) (4,539) 16,166 49,679 77,741 (9,181) 5,657
Transfers--policy
charges and deductions. (489) (421) (6) (581) (203) (363) (1,651)
Transfers--surrenders.. (4,982) (2,121) (437) (3,005) (734) (2,207) (13,547)
Transfers--other....... 9 5 (1) 24 1 19
------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy
Transactions............ (17,069) (4,597) 16,174 49,015 78,829 (10,839) (1,234)
------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS .......... (31,682) (12,817) 16,551 50,137 78,729 (7,776) (4,385)
------------------------------------------------------------------------------
NET ASSETS
Beginning of Period.... 171,277 96,373 43,074 76,205 392,603
------------------------------------------------------------------------------
End of Period.......... $139,595 $83,556 $16,551 $93,211 $78,729 $68,429 $388,218
------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
(2) Formerly named Growth Variable Account.
See Notes to Financial Statements
G-7
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
I-Net Multi- Equity Mid-Cap Equity Small-Cap
Tollkeeper Strategy Income Growth LT Value Index Index
Variable Variable Variable Variable Variable Variable Variable
Account (1) 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)................. ($35) $19,114 $62,256 $208,278 $284 $8,078 $9
Net realized gain
(loss) from security
transactions........... (56) 489 53 11,301 (201) 2,758 (1,639)
Net unrealized
appreciation
(depreciation) on
investments............ 996 (19,277) (77,265) (267,896) 2,242 (21,525) 490
-------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... 905 326 (14,956) (48,317) 2,325 (10,689) (1,140)
-------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM POLICY TRANSACTIONS
Transfer of net
premiums............... 653 3,419 14,896 30,571 1,957 18,186 1,629
Transfers between
variable accounts, net. 19,744 (18,288) (5,580) 18,660 7,350 (1,302) 2,354
Transfers--policy
charges and deductions. (2) (1,464) (3,998) (9,731) (60) (3,616) (81)
Transfers--surrenders.. (79) (10,069) (27,093) (58,499) (1,046) (31,199) (966)
Transfers--other....... 95 (4) 11 229 8 (4) 3
-------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy
Transactions............ 20,411 (26,406) (21,764) (18,770) 8,209 (17,935) 2,939
-------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS........... 21,316 (26,080) (36,720) (67,087) 10,534 (28,624) 1,799
-------------------------------------------------------------------------
NET ASSETS
Beginning of Period.... 257,111 787,576 1,478,444 29,186 876,162 27,238
-------------------------------------------------------------------------
End of Period.......... $21,316 $231,031 $750,856 $1,411,357 $39,720 $847,538 $29,037
-------------------------------------------------------------------------
</TABLE>
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
See Notes to Financial Statements
G-8
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
International Government Managed Money High Yield Large-Cap
REIT Value Securities Bond Market Bond Value
Variable Variable Variable Variable Variable Variable Variable
Account Account (1) Account Account Account Account Account
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income.. $129 $14,364 $3,177 $9,436 $4,905 $7,907 $18
Net realized gain
(loss) from security
transactions........... (96) 8,705 (1,698) (2,404) 88 (4,960) 771
Net unrealized
appreciation
(depreciation) on
investments............ 3,038 (44,792) 3,790 7,216 126 (6,600) 1,991
---------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... 3,071 (21,723) 5,269 14,248 5,119 (3,653) 2,780
---------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM POLICY TRANSACTIONS
Transfer of net
premiums............... 1,210 15,503 3,971 7,342 14,981 2,982 1,930
Transfers between
variable accounts, net. 5,280 (37,628) (14,817) 3,329 (57,347) (10,108) (13,364)
Transfers--policy
charges and deductions. (23) (3,244) (804) (2,103) (2,468) (842) (91)
Transfers--surrenders.. (758) (23,584) (6,135) (15,249) (37,752) (8,466) (957)
Transfers--other....... 7 39 (3) (15) (18) 9 (22)
---------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy
Transactions............ 5,716 (48,914) (17,788) (6,696) (82,604) (16,425) (12,504)
---------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS........... 8,787 (70,637) (12,519) 7,552 (77,485) (20,078) (9,724)
---------------------------------------------------------------------------
NET ASSETS
Beginning of Period.... 16,965 734,693 157,020 381,084 268,864 207,876 35,179
---------------------------------------------------------------------------
End of Period.......... $25,752 $664,056 $144,501 $388,636 $191,379 $187,798 $25,455
---------------------------------------------------------------------------
</TABLE>
(1) Formerly named International Variable Account.
See Notes to Financial Statements
G-9
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In thousands)
<TABLE>
<CAPTION>
Aggressive Emerging Small-Cap Bond and Multi- Equity Mid-Cap
Equity Markets Equity Income Equity Strategy Income Growth LT Value
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account (1) Account Account Account Account Account Account (2)
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss)................. $11,838 ($675) $2,340 $7,906 $19,425 $19,508 $59,909 $63,731 ($131)
Net realized gain
(loss) from security
transactions........... 186 (6,138) 911 (2,243) 1,347 1,542 3,688 7,190 (172)
Net unrealized
appreciation
(depreciation) on
investments............ 22,743 41,094 7,070 (13,943) 85,824 (5,575) 23,088 653,422 (223)
-----------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... 34,767 34,281 10,321 (8,280) 106,596 15,475 86,685 724,343 (526)
-----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM POLICY TRANSACTIONS
Transfer of net
premiums............... 9,851 4,049 611 4,797 20,828 14,651 40,452 53,529 2,923
Transfers between
variable accounts, net
(3).................... 6,629 (5,033) 11,060 (20,193) (12,934) (31,764) (41,720) (332) 27,479
Transfers--policy
charges and deductions. (1,509) (1,041) (658) (1,531) (3,747) (4,085) (9,972) (12,702) (149)
Transfers--surrenders
(3).................... (7,515) (3,332) (3,382) (4,088) (16,604) (17,054) (43,649) (53,432) (516)
Transfers--other (3)... 3 (31) 2 39 47 59 72 101 (25)
-----------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Derived
from Policy
Transactions............ 7,459 (5,388) 7,633 (20,976) (12,410) (38,193) (54,817) (12,836) 29,712
-----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS........... 42,226 28,893 17,954 (29,256) 94,186 (22,718) 31,868 711,507 29,186
-----------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year...... 129,051 67,480 25,120 105,461 298,417 279,829 755,708 766,937
-----------------------------------------------------------------------------------------------
End of Year............ $171,277 $96,373 $43,074 $76,205 $392,603 $257,111 $787,576 $1,478,444 $29,186
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Formerly named Growth Variable Account.
(2) Operations commenced on January 4, 1999.
(3) Prior year amounts have been reclassified to conform with current year
presentation.
See Notes to Financial Statements
G-10
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1999
(In thousands)
<TABLE>
<CAPTION>
Inter- Govern-
Equity Small-Cap national ment Managed Money High Yield Large-Cap
Index Index REIT Value Securities Bond Market Bond Value
Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account (1) Account (1) Account (2) Account Account Account Account Account (1)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss)............... $2,618 $243 $506 $20,579 $7,318 $26,226 $7,846 $16,407 ($104)
Net realized gain
(loss) from security
transactions......... 5,531 (108) (49) (8,578) (712) (2,713) (59) (7,338) (321)
Net unrealized
appreciation
(depreciation) on
investments.......... 133,889 3,395 (1,602) 120,690 (10,686) (36,495) 484 (5,264) 618
---------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Resulting from
Operations............ 142,038 3,530 (1,145) 132,691 (4,080) (12,982) 8,271 3,805 193
---------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM POLICY TRANSACTIONS
Transfer of net
premiums............. 42,843 2,338 1,329 33,635 9,339 26,796 50,318 10,754 3,484
Transfers between
variable accounts,
net (3).............. (30,705) 22,081 17,215 9,162 48,688 (17,288) 70,684 (29,077) 32,676
Transfers--policy
charges and
deductions........... (8,993) (109) (87) (8,135) (2,743) (6,025) (7,769) (4,109) (168)
Transfers--surrenders
(3).................. (40,918) (599) (354) (32,310) (8,793) (19,956) (39,021) (13,262) (979)
Transfers--other (3)
..................... 117 (3) 7 33 (32) 20 (22) (27)
---------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Derived
from Policy Transactions. (37,656) 23,708 18,110 2,385 46,459 (16,453) 74,190 (35,694) 34,986
---------------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN NET
ASSETS................ 104,382 27,238 16,965 135,076 42,379 (29,435) 82,461 (31,889) 35,179
---------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year.... 771,780 599,617 114,641 410,519 186,403 239,765
---------------------------------------------------------------------------------------------------
End of Year.......... $876,162 $27,238 $16,965 $734,693 $157,020 $381,084 $268,864 $207,876 $35,179
---------------------------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced on January 4, 1999 for the Small-Cap Index and Large-
Cap Value Variable Accounts and January 6, 1999 for the REIT Variable Account.
(2) Formerly named International Variable Account.
(3) Amounts have been reclassified to conform with current year presentation.
See Notes to Financial Statements
G-11
<PAGE>
PACIFIC SELECT 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 composed of twenty-one subaccounts called
Variable Accounts: the Aggressive Equity Variable Account, the Emerging
Markets Variable Account, the Diversified Research Variable Account, the
Small-Cap Equity Variable Account (formerly the Growth Variable Account), the
International Large-Cap Variable Account, the Bond and Income Variable
Account, the Equity Variable Account, the I-Net Tollkeeper Variable Account,
the Multi-Strategy Variable Account, the Equity Income Variable Account, the
Growth LT Variable Account, the Mid-Cap Value Variable Account, the Equity
Index Variable Account, the Small-Cap Index Variable Account, the REIT
Variable Account, the International Value Variable Account (formerly the
International Variable Account), the Government Securities Variable Account,
the Managed Bond Variable Account, the Money Market Variable Account, the High
Yield Bond Variable Account, and the Large-Cap Value 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 Sections B through E
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 three new Variable Accounts: the Diversified Research
Variable Account, the International Large-Cap Variable Account, and the I-Net
Tollkeeper Variable Account. The Diversified Research Variable Account and the
International Large-Cap Variable Account commenced operations on January 3,
2000, and the I-Net Tollkeeper Variable Account commenced operations on May 1,
2000.
The Separate Account was established by Pacific Life Insurance Company
("Pacific Life") on 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 Funds are valued at the reported net asset
values of the respective portfolios. Valuation of securities held by the Funds
is discussed in the notes to their financial statements.
B. Security Transactions and Investment Income
Transactions are recorded on the trade date. Realized gains and losses on
sales of investments are determined on the basis of identified cost. Dividend
income is recorded on the ex-dividend date.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal income
tax return of Pacific Life, which is taxed as a life insurance company under
the provisions of the Tax Reform Act of 1986. Under current tax law, no
Federal income taxes are expected to be paid by Pacific Life with respect to
the operations of the Separate Account.
2. DIVIDENDS
During the six-month period ended June 30, 2000, the Fund declared dividends
for each portfolio, except for the Diversified Research Portfolio, the
International Large-Cap Portfolio, and the I-Net Tollkeeper Portfolio. The
amounts accrued by the Separate Account for its share of the dividends were
reinvested in additional full and fractional shares of the related portfolios.
3. CHARGES AND EXPENSES
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 Select Distributors, Inc. (formerly Pacific Mutual Distributors,
Inc.), a wholly-owned subsidiary of Pacific Life, serves as principal
underwriter of variable life insurance policies funded by interests in the
Separate Account, without remuneration from the Separate Account.
H-1
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
5. SEPARATE ACCOUNT'S COST OF INVESTMENTS IN THE FUNDS 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). A reconciliation of
total cost and market value of the Separate Account's investments in the Fund
as of June 30, 2000 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Variable Accounts
----------------------------------------------------------------------------------------
Aggressive Emerging Diversified Small-Cap International Bond and
Equity Markets Research (1) Equity (2) Large-Cap (1) Income Equity
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $129,148 $80,336 $30,011 $82,486 $230,299
Add: Total net proceeds
from policy and M&E
transactions 14,114 10,160 $17,059 57,812 $89,254 1,935 25,415
Reinvested distribu-
tions from the Fund:
(a) Net investment in-
come 42 81 2,392 25
(b) Net realized gain 4,851 5,979 25,275
----------------------------------------------------------------------------------------
Sub-Total 148,113 90,538 17,059 93,883 89,254 86,813 281,014
Less:Cost of investments
disposed during the pe-
riod 29,790 15,636 946 10,852 10,637 14,941 28,070
----------------------------------------------------------------------------------------
Total cost of invest-
ments at end of period 118,323 74,902 16,113 83,031 78,617 71,872 252,944
Add: Unrealized apprecia-
tion (depreciation) 21,272 8,654 438 10,180 112 (3,444) 135,274
----------------------------------------------------------------------------------------
Total market value of
investments at end of
period $139,595 $83,556 $16,551 $93,211 $78,729 $68,428 $388,218
----------------------------------------------------------------------------------------
<CAPTION>
I-Net Multi- Equity Growth Mid-Cap Equity Small-Cap
Tollkeeper (1) Strategy Income LT Value Index Index
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $221,844 $588,774 $522,435 $29,409 $491,526 $23,843
Add: Total net proceeds
from policy and M&E
transactions $22,729 1,010 22,104 58,172 10,617 28,510 21,104
Reinvested distribu-
tions from the Fund:
(a) Net investment in-
come 3,250 3,277 3,271 28 4,076 67
(b) Net realized gain 17,359 63,715 214,434 469 9,267 150
----------------------------------------------------------------------------------------
Sub-Total 22,729 243,463 677,870 798,312 40,523 533,379 45,164
Less: Cost of investments
disposed during the
period 2,409 28,423 48,552 75,068 2,822 48,951 20,012
----------------------------------------------------------------------------------------
Total cost of invest-
ments at end of period 20,320 215,040 629,318 723,244 37,701 484,428 25,152
Add: Unrealized apprecia-
tion 996 15,991 121,538 688,113 2,019 363,110 3,885
----------------------------------------------------------------------------------------
Total market value of
investments at end of
period $21,316 $231,031 $750,856 $1,411,357 $39,720 $847,538 $29,037
----------------------------------------------------------------------------------------
<CAPTION>
International Government Managed Money High Yield Large-Cap
REIT Value (2) Securities Bond Market Bond Value
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total cost of invest-
ments at beginning of
period $18,568 $593,133 $162,555 $398,013 $268,394 $223,719 $34,560
Add: Total net proceeds
from policy and M&E
transactions 7,088 253,233 9,841 20,810 308,272 14,402 11,356
Reinvested distribu-
tions from the Fund:
(a) Net investment in-
come 243 4,109 11,792 6,327 9,103 73
(b) Net realized gain 14 18,597 156
----------------------------------------------------------------------------------------
Sub-Total 25,913 864,963 176,505 430,615 582,993 247,224 46,145
Less: Cost of investments
disposed during the
period 1,596 297,674 30,260 32,266 392,210 36,984 23,299
----------------------------------------------------------------------------------------
Total cost of invest-
ments at end of period 24,317 567,289 146,245 398,349 190,783 210,240 22,846
Add: Unrealized apprecia-
tion (depreciation) 1,435 96,767 (1,744) (9,713) 596 (22,442) 2,609
----------------------------------------------------------------------------------------
Total market value of
investments at end of
period $25,752 $664,056 $144,501 $388,636 $191,379 $187,798 $25,455
----------------------------------------------------------------------------------------
</TABLE>
------------------
(1) Operations commenced during 2000 (See Note 1 to Financial Statements).
(2) Small-Cap Equity was formerly named Growth and International Value was
formerly named International.
H-2
<PAGE>
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
6. SELECTED ACCUMULATION UNIT ** INFORMATION
Selected accumulation unit information for the period ended June 30, 2000 were
as follows:
<TABLE>
<CAPTION>
Accumulation
Unit Value
-------------------------------------------------------------
At At Number of Units
Variable Beginning End of Outstanding at
Accounts of Period Period End of Period
-------------------------------------------------------------
<S> <C> <C> <C>
Aggressive
Equity $15.41 $13.98 9,987,837
Emerging Markets 10.20 9.30 8,982,455
Diversified
Research (1) 10.00 11.06 1,496,880
Small-Cap Equity 46.31 48.50 1,921,808
International Large-Cap (1) 10.00 9.32 8,450,093
Bond and Income 14.64 15.29 4,476,063
Equity 31.79 31.54 12,310,254
I-Net Tollkeeper
(1) 10.00 10.17 2,096,047
Multi-Strategy 28.64 28.71 8,047,667
Equity Income 37.65 36.94 20,328,330
Growth LT 58.95 56.99 24,764,563
Mid-Cap Value 10.40 11.09 3,580,959
Equity Index 42.24 41.75 20,300,694
Small-Cap Index 11.79 11.99 2,420,773
REIT 9.85 11.40 2,258,446
International
Value 20.58 19.93 33,321,261
Government
Securities 18.01 18.66 7,741,984
Managed Bond 18.81 19.53 19,904,347
Money Market 13.77 14.08 13,594,183
High Yield Bond 22.99 22.58 8,316,051
Large-Cap Value 11.01 11.94 2,131,517
</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.
(1) Operations commenced during 2000 (see Note 1 to Financial Statements).
H-3
