COVA VARIABLE ANNUITY ACCOUNT FIVE
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
ASSETS
INVESTMENTS:
<TABLE>
<CAPTION>
<S> <C>
COVA SERIES TRUST:
Quality Income Portfolio - 20,862 shares at a net asset value of $10.39 per share (cost $222,969) $ 216,848
Growth and Income Portfolio - 31,416 shares at a net asset value of $13.27 per share (cost $410,043) 416,904
Money Market Portfolio - 605,466 shares at a net asset value of $1.00 per share (cost $605,466) 605,466
Stock Index Portfolio - 39,108 shares at a net asset value of $15.07 per share (cost $559,441) 589,399
Bond Debenture Portfolio - 4,668 shares at a net asset value of $10.22 per share (cost $47,544) 47,706
Quality Bond Portfolio -3,374 shares at a net asset value of $9.87 per share (cost $33,463) 33,308
Small Capital Stock Portfolio - 29,342 shares at a net asset value of $10.46 per share (cost $314,991) 307,044
Large Capital Stock Portfolio - 16,625 shares at a net asset value of $10.19 per share (cost $169,188) 169,332
Select Equity Portfolio - 26,248 shares at a net asset value of $9.89 per share (cost 263,731) 259,693
International Equity Portfolio - 32,708 shares at a net value of $10.33 per share (cost $335,096) 337,815
LORD ABBETT SERIES FUND, INC:
Growth and Income Portfolio - 353,968 shares at a net asset value of $16.31 per share (cost $5,636,388) 5,773,263
----------
TOTAL ASSETS $8,756,778
==========
LIABILITIES AND CONTRACT OWNERS' EQUITY
FEES PAYABLE TO COVA FINANCIAL LIFE INSURANCE COMPANY $ 973
CONTRACT OWNERS' EQUITY:
Trust Quality Income - 14,470 accumulation units at $14.984795 per unit 216,823
Trust Growth and Income - 26,874 accumulation units at $15.511764 per unit 416,857
Trust Money Market - 51,981 accumulation units at $11.646765 per unit 605,407
Trust Stock Index - 34,223 accumulation units at $17.220447 per unit 589,331
Trust Bond Debenture Portfolio - 4,640 accumulation units at $10.279463 per unit 47,700
Trust Quality Bond Portfolio - 3,338 accumulation units at $9.978403 per unit 33,305
Trust Small Cap Stock Portfolio - 29,331 accumulation units at $10.467041 per unit 307,011
Trust Large Cap Stock Portfolio - 16,575 accumulation units at $10.214749 per unit 169,314
Trust Select Equity Portfolio - 26,193 accumulation units at $9.913777 per unit 259,669
Trust Internationl Equity Portfolio - 32,603 accumulation units at $10.360305 per unit 337,782
Fund Growth and Income - 254,906 accumulation units at $22.645984 per unit 5,772,606
----------
TOTAL CONTRACT OWNERS' EQUITY 8,755,805
----------
TOTAL LIABILITIES AND CONTRACT OWNERS' EQUITY $8,756,778
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996
(Unaudited)
COVA
LORD ABBETT
SERIES TRUST
SERIES FUND, INC.
_____________________________________________________________________________
_____________________________________ ____________
<TABLE>
<CAPTION>
QUALITY GROWTH & MONEY STOCK BOND QUALITY SMALL LARGE SELECT
INCOME INCOME MARKET INDEX DEBENTURE BOND CAP STOCK CAP STOCK EQUITY
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividends $ 5,806 $ 3,366 $11,190 $ 5,732 $ 384 $ 413 $ 761 $ 745 $ 1,040
Total Income 5,806 3,366 11,190 5,732 384 413 761 745 1,040
--------- --------- ------- ------- ---------- --------- ----------- ---------- ---------
EXPENSES:
Mortality and Expense
Risk Fee 1,207 1,577 2,661 2,603 45 34 198 92 152
Administrative Fee 145 189 319 312 5 4 24 11 18
--------- --------- ------- ------- ---------- --------- ----------- ---------- ---------
Total Expenses 1,352 1,766 2,980 2,915 50 38 222 103 170
--------- --------- ------- ------- ---------- --------- ----------- ---------- ---------
NET INVESTMENT INCOME 4,454 1,600 8,210 2,817 334 375 539 642 870
--------- --------- ------- ------- ---------- --------- ----------- ---------- ---------
NET REALIZED GAIN/(LOSS)
ON INVESTMENTS (674) 1 -- 886 -- -- -- -- --
NET CHANGE IN UNREALIZED
GAIN/(LOSS) ON INVESTMENTS (7,927) 10,655 -- 28,633 162 (155) (7,947) 144 (4,038)
--------- --------- ------- ------- ---------- --------- ----------- ---------- ---------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS (8,601) 10,656 -- 29,519 162 (155) (7,947) 144 (4,038)
--------- --------- ------- ------- ---------- --------- ----------- ---------- ---------
NET INCREASE/(DECREASE) IN
CONTRACT OWNERS' EQUITY
RESULTING FROM OPERATIONS ($4,147) $ 12,256 $ 8,210 $32,336 $ 496 $ 220 ($7,408) $ 786 ($3,168)
========= ========= ======= ======= ========== ========= =========== ========== =========
INTL GROWTH &
EQUITY INCOME TOTAL
<S> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividends $ 1,736 -- $ 31,173
Total Income 1,736 -- 31,173
------- ---------- ---------
EXPENSES:
Mortality and Expense
Risk Fee 236 25,715 34,520
Administrative Fee 28 3,086 4,141
------- ---------- ---------
Total Expenses 264 28,801 38,661
------- ---------- ---------
NET INVESTMENT INCOME 1,472 (28,801) (7,488)
------- ---------- ---------
NET REALIZED GAIN/(LOSS)
ON INVESTMENTS -- 86 299
NET CHANGE IN UNREALIZED
GAIN/(LOSS) ON INVESTMENTS 2,719 233,781 256,027
------- ---------- ---------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS 2,719 233,867 256,326
------- ---------- ---------
NET INCREASE/(DECREASE) IN
CONTRACT OWNERS' EQUITY
RESULTING FROM OPERATIONS $ 4,191 $ 205,066 $248,838
======= ========== =========
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT FIVE
STATEMENT OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Six Months Ended June 30, 1996
(Unaudited)
COVA
LORD ABBETT
SERIES TRUST
SERIES
FUND, INC.
___________________________________________________________________________
__________
<TABLE>
<CAPTION>
QUALITY GROWTH & MONEY STOCK BOND QUALITY SMALL LARGE
INCOME INCOME MARKET INDEX DEBENTURE BOND CAP. STOCK CAP. STOCK
--------- ---------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income $ 4,454 $ 1,600 $ 8,210 $ 2,817 $ 334 $ 375 $ 539 $ 642
Net Realized Gain/(Loss) on
Investments (674) 1 -- 886 -- -- -- --
Net Unrealized Gain/(Loss)
on Investments (7,927) 10,655 -- 28,633 162 (155) (7,947) 144
--------- ---------- ------------ --------- ---------- --------- ------------ -----------
NET INCREASE/(DECREASE) IN
CONTRACT OWNERS' EQUITY
RESULTING FROM
OPERATIONS (4,147) 12,256 8,210 32,336 496 220 (7,408) 786
--------- ---------- ------------ --------- ---------- --------- ------------ -----------
FROM ACCOUNT UNIT TRANSACTIONS:
Proceeds from Units of
the Account Sold 53,860 28,125 1,992,420 136,258 22,486 31,750 163,536 145,944
Payments for Units of the
Account Redeemed (21,283) (1,305) (119) (4,845) -- -- -- --
Account Transfers 54,980 272,641 (1,720,824) 214,465 24,718 1,335 150,883 22,584
--------- ---------- ------------ --------- ---------- --------- ------------ -----------
NET INCREASE IN CONTRACT
OWNERS' EQUITY FROM
ACCOUNT UNIT
TRANSACTIONS 87,557 299,461 271,477 345,878 47,204 33,085 314,419 168,528
--------- ---------- ------------ --------- ---------- --------- ------------ -----------
NET INCREASE IN CONTRACT
OWNERS' EQUITY 83,410 311,717 279,687 378,214 47,700 33,305 307,011 169,314
--------- ---------- ------------ --------- ---------- --------- ------------ -----------
CONTRACT OWNERS' EQUITY:
BEGINNING OF PERIOD 133,413 105,140 325,720 211,117 -- -- -- --
--------- ---------- ------------ --------- ---------- --------- ------------ -----------
END OF PERIOD $216,823 $ 416,857 $ 605,407 $589,331 $ 47,700 $ 33,305 $ 307,011 $ 169,314
========= ========== ============ ========= ========== ========= ============ ===========
SELECT INTL GROWTH &
EQUITY EQUITY INCOME TOTAL
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income $ 870 $ 1,472 ($28,801) ($7,488)
Net Realized Gain/(Loss) on
Investments -- -- 86 299
Net Unrealized Gain/(Loss)
on Investments (4,038) 2,719 233,781 256,027
--------- -------- ----------- -----------
NET INCREASE/(DECREASE) IN
CONTRACT OWNERS' EQUITY
RESULTING FROM
OPERATIONS (3,168) 4,191 205,066 248,838
--------- -------- ----------- -----------
FROM ACCOUNT UNIT TRANSACTIONS:
Proceeds from Units of
the Account Sold 222,429 228,424 524,000 3,549,232
Payments for Units of the
Account Redeemed -- -- (57,411) (84,963)
Account Transfers 40,408 105,167 2,425,843 1,592,200 0
--------- -------- -----------
NET INCREASE IN CONTRACT
OWNERS' EQUITY FROM
ACCOUNT UNIT
TRANSACTIONS 262,837 333,591 2,892,432 5,056,469 5,056,469
--------- -------- -----------
NET INCREASE IN CONTRACT
OWNERS' EQUITY 259,669 337,782 3,097,498 5,305,307
--------- -------- ----------- -----------
CONTRACT OWNERS' EQUITY:
BEGINNING OF PERIOD -- -- 2,675,108 3,450,498
--------- -------- ----------- -----------
END OF PERIOD $259,669 $337,782 $5,772,606 $8,755,805
========= ======== =========== ===========
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT FIVE
STATEMENT OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
<TABLE>
VAN KAMPEN MERRITT
LORD ABBETT
SERIES TRUST
SERIES FUND, INC.
___________________________________________________ __________
<CAPTION>
QUALITY GROWTH & MONEY STOCK
INCOME INCOME MARKET INDEX
--------- ---------- ------------ ---------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income $ 1,133 $ 7,080 $ 8,149 $ 7,348
Net Realized Gain on
Investments 6 262 -- 1,432
Net Unrealized Gain/(Loss)
on Investments 1,806 (3,794) -- 1,325
--------- ---------- ---------
NET INCREASE IN CONTRACT
OWNERS' EQUITY
RESULTING FROM
OPERATIONS 2,945 3,548 8,149 10,105
--------- ---------- ------------ ---------
From Account Unit Transactions:
Proceeds from Units of
the Account Sold 20,000 148 2,128,675 15,778
Payments for Units of the
Account Redeemed (248) -- -- (2,204)
Account Transfers 110,716 101,444 (1,811,104) 187,438
--------- ---------- ------------ ---------
Net Increase in Contract
Owners' Equity From
Account Unit
Transactions 130,468 101,592 317,571 201,012
--------- ---------- ------------ ---------
Net Increase in Contract
Owners' Equity 133,413 105,140 325,720 211,117
--------- ---------- ------------ ---------
Contract Owners' Equity:
Beginning of Period -- -- -- --
--------- ---------- ------------ ---------
End of Period $133,413 $ 105,140 $ 325,720 $211,117
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout
the period per sub-account are presented below:
<TABLE>
<CAPTION>
GROWTH &
INCOME TOTAL
----------- -----------
<S> <C> <C>
FROM OPERATIONS:
Net Investment Income $ 197,406 $ 221,116
Net Realized Gain on
Investments 2,243 3,943
Net Unrealized Gain/(Loss)
on Investments (96,906) (97,569)
----------- -----------
NET INCREASE IN CONTRACT
OWNERS' EQUITY
RESULTING FROM
OPERATIONS 102,743 127,490
----------- -----------
From Account Unit Transactions:
Proceeds from Units of
the Account Sold 441,266 2,605,867
Payments for Units of the
Account Redeemed (3,894) (6,346)
Account Transfers 2,134,993 723,487
----------- -----------
Net Increase in Contract
Owners' Equity From
Account Unit
Transactions 2,572,365 3,323,008
----------- -----------
Net Increase in Contract
Owners' Equity 2,675,108 3,450,498
----------- -----------
Contract Owners' Equity:
Beginning of Period -- --
----------- -----------
End of Period $2,675,108 $3,450,498
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout
the period per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - QUALITY INCOME PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
FOR THE SIX MONTHS FOR THE PERIOD FROM8/16/95
ENDED 6/30/96 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) THROUGH 12/31/95)
-------------------- -----------------------------
<S> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 15.33 $ 14.42
-------------------- -----------------------------
Net Investment Income .33 .32
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions (.68) .59
-------------------- -----------------------------
Total from Investment Operations (.35) .91
-------------------- -----------------------------
Accumulation Unit Value,
End of Period $ 14.98 $ 15.33
==================== =============================
Total Return** (4.50)%* 17.03%*
Contract Owners Equity ,
End of Period (in thousands) $ 217 $ 133
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 4.61%* 6.54%*
Number of Units Outstanding
at End of Period 14,470 8,702
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance fees
or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - GROWTH & INCOME PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
FOR THE SIX MONTHS FOR THE PERIOD FROM 7/19/95
ENDED 6/30/96 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) THROUGH 12/3195
-------------------- -----------------------------
<S> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 14.61 $ 13.05
Net Investment Income .02 .99
Net Realized and Unrealized
Gain from Security
Transactions .88 .57
Total from Investment Operations .90 1.56
Accumulation Unit Value,
End of Period $ 15.51 $ 14.61
==================== =============================
Total Return** 12.82%* 26.71%*
Contract Owners Equity ,
End of Period (in thousands) $ 417 $ 105
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 1.27%* 49.49%*
Number of Units Outstanding
at End of Period 26,874 7,197
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance fees or
withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - MONEY MARKET PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
For the Six Months For the Period From 6/19/95
Ended 6/30/96 (Commencement of Operations)
(Unaudited) Through 12/3195
-------------------- -----------------------------
<S> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 11.42 $ 11.13
-------------------- -----------------------------
Net Investment Income .23 .29
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions -- --
Total from Investment Operations .23 .29
Accumulation Unit Value,
End of Period $ 11.65 $ 11.42
==================== =============================
Total Return** 3.94%* 4.94%*
Contract Owners Equity ,
End of Period (in thousands) $ 605 $ 326
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 3.86%* 4.38%*
Number of Units Outstanding
at End of Period 51,981 28,509
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - STOCK INDEX PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
For the Six Months For the Period From 7/20/95
Ended 6/30/96 (Commencement of Operations)
(Unaudited) Through 12/3195
-------------------- -----------------------------
<S> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 15.77 $ 14.13
-------------------- -----------------------------
Net Investment Income .05 .50
Net Realized and Unrealized
Gain from Security
Transactions 1.40 1.14
-------------------- -----------------------------
Total from Investment Operations 1.45 1.64
-------------------- -----------------------------
Accumulation Unit Value,
End of Period $ 17.22 $ 15.77
==================== =============================
Total Return** 19.30%* 26.25%*
Contract Owners Equity ,
End of Period (in thousands) $ 589 $ 211
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 1.35%* 18.57%*
Number of Units Outstanding
at End of Period 34,223 13,384
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - SELECT EQUITY PORTFOLIO (MANAGED BY J.P. MORGAN INVESTMENT
MANAGEMENT, INC.)
FOR THE PERIOD FROM 5/15/96
(COMMENCEMENT OF OPERATIONS)
THROUGH 6/30/96 (UNAUDITED)
-----------------------------
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.15
-----------------------------
Net Investment Income .02
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions (.26)
-----------------------------
Total from Investment Operations (.24)
-----------------------------
Accumulation Unit Value,
End of Period $ 9.91
=============================
Total Return** (3.41)%*
Contract Owners Equity ,
End of Period (in thousands) $ 260
Ratio of Expenses to Average 1.40%*
Contract Owners' Equity
Ratio of Net Investment Income
to Average Contract
Owners' Equity 7.17%*
Number of Units Outstanding
at End of Period 26,193
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - LARGE CAP STOCK PORTFOLIO(MANAGED BY J.P. MORGAN
INVESTMENT MANAGEMENT, INC.)
FOR THE PERIOD FROM 5/16/96
(COMMENCEMENT OF OPERATIONS)
THROUGH 6/30/96 (UNAUDITED)
-----------------------------
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.16
-----------------------------
Net Investment Income .02
Net Realized and Unrealized
Gain from Security
Transactions .03
-----------------------------
Total from Investment Operations .05
-----------------------------
Accumulation Unit Value,
End of Period $ 10.21
=============================
Total Return** 8.90%*
Contract Owners Equity ,
End of Period (in thousands) $ 169
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 8.73%*
Number of Units Outstanding
at End of Period 16,575
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - SMALL CAP STOCK PORTFOLIO(MANAGED BY J.P. MORGAN
INVESTMENT MANAGEMENT, INC.)
FOR THE PERIOD FROM 5/15/96
(COMMENCEMENT OF OPERATIONS)
THROUGH 6/30/96 (UNAUDITED)
-----------------------------
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.91
-----------------------------
Net Investment Income .01
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions (.45)
-----------------------------
Total from Investment Operations (.44)
-----------------------------
Accumulation Unit Value,
End of Period $ 10.47
=============================
Total Return** 20.09%*
Contract Owners Equity ,
End of Period (in thousands) $ 307
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 3.40%*
Number of Units Outstanding
at End of Period 29,331
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - INTERNATIONAL EQUITY PORTFOLIO(MANAGED BY J.P. MORGAN
INVESTMENT MANAGEMENT, INC.)
FOR THE PERIOD FROM 5/14/96
(COMMENCEMENT OF OPERATIONS)
THROUGH 6/30/96 (UNAUDITED)
-----------------------------
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.10
-----------------------------
Net Investment Income .04
Net Realized and Unrealized
Gain from Security
Transactions .22
-----------------------------
Total from Investment Operations .26
-----------------------------
Accumulation Unit Value,
End of Period $ 10.36
=============================
Total Return** 15.25%*
Contract Owners Equity ,
End of Period (in thousands) $ 338
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 7.80%*
Number of Units Outstanding
at End of Period 32,603
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - QUALITY BOND PORTFOLIO (MANAGED BY J.P. MORGAN INVESTMENT MANAGEMENT, INC.)
FOR THE PERIOD FROM 5/20/96
(COMMENCEMENT OF OPERATIONS)
THROUGH 6/30/96 (UNAUDITED)
-----------------------------
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 9.95
-----------------------------
Net Investment Income .11
Net Realized and Unrealized
Loss from Security
Transactions (.08)
-----------------------------
Total from Investment Operations .03
-----------------------------
Accumulation Unit Value,
End of Period $ 9.98
=============================
Total Return** (.86)%*
Contract Owners Equity ,
End of Period (in thousands) $ 33
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 13.74%*
Number of Units Outstanding
at End of Period 3,338
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - BOND DEBENTURE PORTFOLIO (MANAGED BY LORD, ABBETT & CO.)
FOR THE PERIOD FROM 5/20/96
(COMMENCEMENT OF OPERATIONS)
THROUGH 6/30/96 (UNAUDITED)
-----------------------------
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.15
-----------------------------
Net Investment Income .06
Net Realized and Unrealized
Gain from Security
Transactions .07
-----------------------------
Total from Investment Operations .13
-----------------------------
Accumulation Unit Value,
End of Period $ 10.28
=============================
Total Return** 11.69%*
Contract Owners Equity ,
End of Period (in thousands) $ 48
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 9.27%*
Number of Units Outstanding
at End of Period 4,640
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
LORD ABBETT SERIES FUND, INC. - GROWTH AND INCOME PORTFOLIO
FOR THE SIX MONTHS FOR THE PERIOD FROM7/20/95
ENDED 6/30/96 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) THROUGH 12/3195
-------------------- -----------------------------
<S> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 21.31 $ 19.54
-------------------- -----------------------------
Net Investment Income (.16) 1.50
Net Realized and Unrealized
Gain from Security
Transactions 1.50 .27
-------------------- -----------------------------
Total from Investment Operations 1.34 1.77
-------------------- -----------------------------
Accumulation Unit Value,
End of Period $ 22.65 $ 21.31
==================== =============================
Total Return** 13.05%* 20.38%*
Contract Owners Equity ,
End of Period (in thousands) $ 5,773 $ 2,675
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40%*
Ratio of Net Investment Income
to Average Contract (1.40)%*
Owners' Equity 42.60%*
Number of Units Outstanding
at End of Period 254,906 125,555
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
1. ORGANIZATION:
Cova Variable Annuity Account Five (the "Separate Account") is a separate
investment account established by a resolution of the Board of Directors of
Cova Financial Life Insurance Company ("Cova Life"). The Separate Account
operates as a Unit Investment Trust under the Investment Company Act of 1940.
The Separate Account is divided into sub-accounts, with the assets of each
sub-account invested in either the Cova Series Trust (formerly Van Kampen
Merritt Series Trust) (the "Trust"), the Lord Abbett Series Fund, Inc.
("Fund") or General American Capital Company (GACC). The Trust consists of
ten portfolios of which four managed by Van Kampen American Capital Investment
Advisory Corp., five managed by J.P. Morgan Investment Management, Inc. and
one portfolio managed by Lord, Abbett and Co. During 1996 and prior, the
Trust portfolios available for investment were; the Quality Income, Growth &
Income, Money Market, Stock Index, Bond Debenture, Quality Bond, Small Cap
Stock, Large Cap Stock, Select Equity, and International Equity Portfolios.
The Fund had one portfolio available for investment in 1995; the Growth and
Income Portfolio. GACC had the Money Market Portfolio available for
investment in 1996. Not all portfolios of the Trust, Fund and GACC are
available for investment depending upon the nature and specific terms of the
different contracts currently being offered for sale. The Trust, Fund and
GACC are all diversified, open-end, management investment companies which are
intended to meet differing investment objectives.
The Trust Quality Income Portfolio invests in U.S. Government issued debt
obligations and in various investment-grade debt instruments, including
mortgage pass-through certificates and collateralized mortgage obligations.
The Trust Growth and Income Portfolio invests prrimarily in common stocks and
futures and options contracts. The Trust Money Market and GACC Money Market
Portfolios invest in short-term money market instruments. The Trust Stock
Index Portfolio invests in common stocks, stock index futures and options, and
short-term securities. The Trust Bond Debenture Portfolio invests primarily
in convertible and discount debt securities. The Trust Quality Bond Portfolio
investmentment objective is to provide a high total return consistent with
moderate risk of capital and maintenance of liquidity. The Small Cap Stock
Portfolio invests primarily in the common stock of small U.S. companies. The
Large Cap Stock and Select Equity Portfolios invest in stocks of large and
medium-sized companies holding from 225 to 250 and 60 to 90 stocks,
respectively. The International Equity Portfolio invests primarily in stocks
of established companies based in developed countries. The Fund Growth and
Income Portfolio invests primarily in common stocks.
2. SIGNIFICANT ACCOUNTING POLICIES:
A. INVESTMENT VALUATION
Investments in shares of the Trust, Fund and GACC are carried in the statement
of assets and liabilities at the underlying net asset value of the Trust, Fund
and GACC. The net asset value of the Trust, Fund and GACC has been determined
on the market value basis, and is valued daily by the Trust, Fund and GACC
investment managers. Realized gains and losses are calculated by the average
cost method.
B. REINVESTMENT OF DIVIDENDS
Dividends received from net investment income and net realized capital gains
are reinvested in additional shares of the portfolio of the Trust, Fund or
GACC making the distribution or, at the election of the Separate Account,
received in cash. Dividend income and capital gain distributions are recorded
as income on the ex-dividend date.
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
C. FEDERAL INCOME TAXES
Operations of the Separate Account form a part of Cova Life, which is taxed as
a "Life Insurance Company" under the Internal Revenue Code ("Code"). Under
current provisions of the Code, no Federal income taxes are payable by Cova
Life with respect to earnings of the Separate Account.
Under the principles set forth in Internal Revenue Ruling 81-225 and Section
817(h) of the Code and regulations thereunder, Cova Life believes that it will
be treated as the owner of the assets invested in the Separate Account for
Federal income tax purposes, with the result that earnings and gains, if any,
derived from those assets will not be included in a contract owners gross
income until amounts are withdrawn or received pursuant to an Optional Payment
Plan.
3. CONTRACT CHARGES:
There are no deductions made from purchase payments for sales charges at the
time of purchase. However, if all or a portion of the contract value is
withdrawn, a withdrawal charge is calculated and deducted from the contract
value. The withdrawal charge is imposed on withdrawals of contract values
attributable to purchase payments within five years after receipt and is equal
to 5% of the purchase payment withdrawn. After the first contract
anniversary, provided that the contract value prior to withdrawal exceeds
$5,000, an owner may make a withdrawal each contract year of up to 10% of the
aggregate purchase payments free from withdrawal charges. An annual contract
maintenance charge of $30 is imposed on all contracts with contract values
less than $50,000 on their policy anniversary. The charge covers the cost of
contract administration for the previous year and is prorated between the
sub-accounts to which the contract value is allocated.
Mortality and expense risks assumed by Cova Life are compensated by a charge
equivalent to an annual rate of 1.25% of the value of net assets. The
mortality risks assumed by Cova Life arise from its contractual obligation to
make annuity payments after the annuity date for the life of the annuitant,
and to waive the withdrawal charge in the event of the death of the contract
owner.
In addition, the Separate Account bears certain administration expenses, which
are equivalent to an annual rate of .15% of net assets. These charges cover
the cost of establishing and maintaining the contracts and Separate Account.
Cova Life currently advances any premium taxes due at the time purchase
payments are made and then deducts premium taxes from the contract value at
the time annuity payments begin or upon withdrawal if Cova Life is unable to
obtain a refund. Cova Life, however, reserves the right to deduct premium
taxes when incurred.
4. ACCOUNT TRANSFERS:
Subject to certain restrictions, the contract owner may transfer all or a part
of the accumulated value of the contract among other offered and available
account options of the Separate Account and fixed rate annuities of Cova Life.
If more than 12 transfers have been made in the contract year, a transfer fee
of $25 per transfer or, if less, 2% of the amount transferred will be deducted
from the account value. If the owner is participating in the Dollar Cost
Averaging program, such related transfers are not taken into account in
determining any transfer fee.
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS:
The table below summarizes realized and unrealized gains and losses on
investments:
<TABLE>
<CAPTION>
REALIZED GAIN/(LOSS) ON INVESTMENTS:
<S> <C> <C>
For the Six Months For The Period From 6/19/95
Ended 6/30/96 (Commencement of Operations)
(Unaudited) Through 12/31/95
Trust Quality Income Portfolio:
Aggregate Proceeds From Sales $ 49,058 $ 687
Aggregate Cost 49,732 681
Net Realized Gain/(Loss) on Investments ($674) $ 6
==================== =============================
Trust Growth and Income Portfolio:
Aggregate Proceeds From Sales $ 16,458 $ 27,991
Aggregate Cost 16,457 27,729
-------------------- -----------------------------
Net Realized Gain on Investments $ 1 $ 262
- ------------------------------------------ ==================== =============================
Trust Money Market Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 1,471,662 $ 1,544,456
- ------------------------------------------ -------------------- -----------------------------
Aggregate Cost 1,471,662 1,544,456
- ------------------------------------------ -------------------- -----------------------------
Net Realized Gain/(Loss) on Investments -- --
- ------------------------------------------ ==================== =============================
Trust Stock Index Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 16,392 $ 152,510
- ------------------------------------------ -------------------- -----------------------------
Aggregate Cost 15,506 151,078
- ------------------------------------------ -------------------- -----------------------------
Net Realized Gain on Investments $ 886 $ 1,432
- ------------------------------------------ ==================== =============================
Trust Bond Debenture Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 42
- ------------------------------------------ --------------------
Aggregate Cost 42 N/A
- ------------------------------------------ --------------------
Net Realized Gain on Investments --
====================
</TABLE>
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
REALIZED GAIN/(LOSS) ON INVESTMENTS
For the Six Months For the Period From 6/19/95
Ended 6/30/96 (Commencement of Operations)
(Unaudited) Through 12/31/95
-----------------------------
<S> <C> <C>
Trust Quality Bond Portfolio:
Aggregate Proceeds From Sales $ 34
Aggregate Cost 34 N/A
--------------------
Net Realized Gain on Investments --
====================
Trust Small Capital Stock Portfolio:
Aggregate Proceeds From Sales $ 65
Aggregate Cost 65 N/A
--------------------
Net Realized Gain on Investments --
====================
Trust Large Capital Stock Portfolio:
Aggregate Proceeds From Sales $ 59
Aggregate Cost 59 N/A
--------------------
Net Realized Gain on Investments --
====================
Trust Select Equity Portfolio:
Aggregate Proceeds From Sales $ 57
Aggregate Cost 57 N/A
--------------------
Net Realized Gain on Investments --
====================
Trust International Equity Portfolio:
Aggregate Proceeds From Sales $ 84
Aggregate Cost 84 N/A
--------------------
Net Realized Gain on Investments --
====================
Fund Growth and Income Portfolio:
Aggregate Proceeds From Sales $ 47,656 $ 139,543
Aggregate Cost 47,570 137,300
Net Realized Gain on Investments $ 86 $ 2,243
==================== =============================
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
UNREALIZED GAIN/(LOSS) ON INVESTMENTS
<S> <C> <C>
For the Six Months For the Period From 6/19/95
Ended 6/30/96 (Commencement of Operations)
(Unaudited) Through 12/31/95
-----------------------------
Trust Quality Income Portfolio:
End of Period ($6,121) $ 1,806
Beginning of Period 1,806 --
Net Change in Unrealized Gain/(Loss) on Investments ($7,927) $ 1,806
==================== =============================
Trust Growth and Income Portfolio:
End of Period $ 6,861 ($3,794)
Beginning of Period (3,794) --
Net Change in Unrealized Gain/(Loss) on Investments $ 10,655 ($3,794)
==================== =============================
Trust Money Market Portfolio:
End of Period -- --
Beginning of Period -- --
Net Change in Unrealized Gain/(Loss) on Investments -- --
==================== =============================
Trust Stock Index Portfolio:
End of Period $ 29,958 $ 1,325
Beginning of Period 1,325 --
Net Change in Unrealized Gain on Investments $ 28,633 $ 1,325
==================== =============================
Trust Bond Debenture Portfolio:
End of Period $ 162
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ 162
====================
</TABLE>
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
UNREALIZED GAIN/(LOSS) ON INVESTMENTS
<S> <C> <C>
For the Six Months For the Period From 6/19/95
Ended 6/30/96 (Commencement of Operations)
(Unaudited) Through 12/31/95
----------------------------
Trust Quality Bond Portfolio:
End of Period ($155)
Beginning of Period -- N/A
Net Change in Unrealized Loss on Investments ($155)
====================
Trust Small Capital Stock Portfolio:
End of Period ($7,947)
Beginning of Period -- N/A
Net Change in Unrealized Loss on Investments ($7,947)
====================
Trust Large Capital Stock Portfolio:
End of Period $ 144
Beginning of Period -- N/A
Net Change in Unrealized Gain on Investments $ 144
====================
Trust Select Equity Portfolio:
End of Period ($4,038) N/A
Beginning of Period --
Net Change in Unrealized Loss on Investments ($4,038)
====================
Trust International Equity Portfolio:
End of Period $ 2,719
Beginning of Period -- N/A
Net Change in Unrealized Gain on Investments $ 2,719
====================
Fund Growth and Income Portfolio:
End of Period $ 136,875 ($96,906)
Beginning of Period (96,906) --
Net Change in Unrealized Gain/(Loss) on Investments $ 233,781 ($96,906)
==================== ============================
</TABLE>
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT FIVE
NOTES TO FINANCIAL STATEMENTS
For the Six Months ended June 30, 1996 (Unaudited) and
For the Period from June 19, 1995 (Commencement of Operations)
Through December 31, 1995
6. ACCOUNT UNIT TRANSACTIONS:
The change in the number of accumulation units resulting from account unit
transactions is as follows:
COVA
LORD ABBETT
SERIES TRUST
SERIES FUND, INC.
______________________________________________________________________________
_______
<TABLE>
__
<CAPTION>
QUALITY GROWTH & MONEY STOCK QUALITY BOND SMALL LARGE SELECT
INCOME INCOME MARKET INDEX BOND DEBENTURE CAP STOCK CAP STOCK EQUITY
-------- --------- --------- ------- ------- --------- --------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Units Sold 1,387 -- 188,325 1,057
Units Redeemed (16) (1) (28) (114)
Units Transferred 7,331 7,198 (159,788) 12,441
Balance at December 31, 1995 8,702 7,197 28,509 13,384 N/A N/A N/A N/A N/A
Units Sold 3,542 1,771 172,487 8,232 3,203 2,208 15,384 14,351 22,189
Units Redeemed (1,387) (90) (10) (292) -- -- -- -- --
Units Transferred 3,613 17,996 (149,005) 12,899 135 2,432 13,947 2,224 4,004
Balances at June 30, 1996(Unaudited) 14,470 26,874 51,981 34,223 3,338 4,640 29,331 16,575 26,193
INTL GROWTH &
EQUITY INCOME TOTAL
------ --------- --------
<S> <C> <C> <C>
Units Sold 21,839 212,608
Units Redeemed (527) (686)
Units Transferred 104,243 (28,575)
Balance at December 31, 1995 N/A 125,555 183,347
Units Sold 22,275 23,558 289,200
Units Redeemed -- (2,620) (4,399)
Units Transferred 10,328 108,413 26,986
Balances at June 30, 1996(Unaudited) 32,603 254,906 495,134
</TABLE>
