[GOLDENSELECT LOGO]
Semi-Annual Report
----------
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
OF
GOLDEN AMERICAN LIFE INSURANCE COMPANY
----------
June 30, 1996
GoldenSelect products are issued by Golden American Life Insurance Company and
distributed by Directed Services, Inc.
<PAGE>
Golden American Life Insurance Company
1001 JEFFERSON STREET, WILMINGTON, DE 19801 TEL: (302) 576-3400
FAX: (302) 576-3450
August 15, 1996
Dear Contractholder:
We are pleased to provide you with your June 30, 1996 Semiannual Report (the
'Report') for The Managed Global Account of Separate Account D. The first six
months of 1996 have seen portfolio assets under management increase 16.7% from
$72 million to $84 million. The portfolio has been managed by Warburg, Pincus
Counsellors, Inc. since July 1994. Included with this Report are comments of
Warburg, Pincus Counsellors, Inc. which reflect their views as of the date
written and are subject to change at any time.
Thank you for your continued support of GoldenSelect products. We look forward
to continuing to serve you throughout 1996 and beyond.
Sincerely,
[Signature]
Terry L. Kendall
President
1
<PAGE>
THE MANAGED GLOBAL ACCOUNT
PORTFOLIO MANAGER'S COMMENTARY
The objective of the Managed Global Account of Separate Account D is high total
investment return. For the first six months of the year, the Managed Global
Account rose 9.30%* versus a 4.52% increase in the Morgan Stanley EAFE Index.
Most foreign equity markets also advanced in the first six months of the year.
The Managed Global Account benefited from this broad-based strength and from
timely stock selection, particularly in the case of Japan, the Asian-Pacific
region's heavyweight and the Account's single largest country weighting.
Most, if not all, of the recent data on the Japanese economy have strengthened
the Portfolio Manager's conviction that the country remains well on the road to
recovery. Dramatic evidence of such came in the form of a 3% rise in gross
domestic product in the first quarter, the fastest quarterly growth in 23 years.
The Portfolio Manager believes that the message is clear: the worst of Japan's
economic woes are, in large measure, behind it, and the recovery is on
increasingly solid footing.
Elsewhere in Asia, the Portfolio Manager remains very positive on the New
Zealand stock market. On a macroeconomics level, the country has much to
recommend it: relatively little in the way of government regulation; low
unemployment; steady growth; and negligible inflation. (It is telling, with
regard to the last point, that the head of New Zealand's central bank has his
remuneration tied directly to his ability to keep inflation at bay.) As well,
New Zealand boasts many well-managed, shareholder-focused companies. The Account
owns what the Portfolio Manager believes to be among the most promising,
including several very strong resource-based firms. The Portfolio Manager
continues to look for, and find, attractive opportunities, though constrained,
to an extent, by the relatively small size of the market.
The Account remains underweighted in Europe. Though interest rates have fallen
across the continent, economic growth, in general, remains weak, and
unemployment stubbornly high. Further, governments are limited in their ability
to remedy the situation via increased spending, given the fiscal restraints
imposed by the Maastrict criteria for economic and monetary union.
That said, there remain selective values on a stock-by-stock basis in Europe.
The Portfolio Manager added a number of companies to the Account which it
believes are attractively valued, including several from the United Kingdom and
France, the Account's two largest weightings in the region. The Account's French
holdings have done particularly well this year; indeed, the French market was
Europe's strongest performer in local-currency terms through June, a welcome
improvement after a poor showing in 1995.
In Latin America, the Portfolio Manager currently believes that many of the best
investment opportunities can be found in Argentina and Chile. Argentina remains
in recession, but there are indications that the economy has bottomed.
Unemployment, though still at record levels, has fallen; mortgage demand has
increased; and industrial production has risen. Inflation is nonexistent -- in
fact, consumer prices have dropped slightly from year-earlier levels. The stock
market has performed strongly year-to-date, and the Portfolio Manager continues
to find stocks which it believes are inexpensive. One threat overhanging the
Argentine market, however, is the potential for higher U.S interest rates. While
higher U.S. rates would negatively impact all Latin American markets to an
extent, Argentina is particularly vulnerable, given the peso's one-to-one
linkage with the U.S. dollar. All told, the Portfolio Manager currently remains
optimistic on Argentina, but cautiously so.
Warburg, Pincus Counsellors, Inc.
- ------------------
* This total return figure is non-standardized and reflects the deduction of the
operating expenses, a mortality and expense risk charge of 140 basis points
and an asset-based administrative charge of 15 basis points, but not the
deduction of the maximum sales load and other contract charges.
2
<PAGE>
THE MANAGED GLOBAL ACCOUNT
PORTFOLIO CHARACTERISTICS
TOP FIVE HOLDINGS AS OF JUNE 30, 1996
<TABLE>
<CAPTION>
<S> <C>
1. Canon Inc. (Japan)..................................................... 3.7%
2. President Enterprise Corporation, Zero coupon due 07/22/2001 (Taiwan).. 3.7%
3. East Japan Railway Company (Japan)..................................... 2.9%
4. Citic Pacific Ltd. (Hong Kong)......................................... 2.5%
5. Nippon Telegraph & Telephone Corporation (Japan)....................... 2.4%
</TABLE>
ASSET DISTRIBUTION BY COUNTRY
[In the printed document a pie chart
graphically shows the following:]
Japan 30.2%
Great Britain 6.5%
France 6.4%
Taiwan 6.4%
New Zealand 5.6%
Hong Kong 5.1%
Korea 4.3%
Other 35.5%
3
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (Cost $75,585,643) (Notes 1 and 3)........................................................ $82,980,228
Cash............................................................................................................ 305
Foreign currency, at value (identified cost of $100,628)........................................................ 100,489
Receivables:
Investment securities sold................................................................................... 1,391,005
Dividends and interest....................................................................................... 172,070
Premium payments and reallocations........................................................................... 22,103
Net unrealized appreciation of forward foreign currency exchange contracts...................................... 1,176,314
Prepaid expenses and other assets............................................................................... 17,920
-----------
Total Assets................................................................................................. 85,860,434
LIABILITIES
Payables:
Investment securities purchased.............................................................................. 1,354,478
Golden American for contract related expenses (Note 2)....................................................... 116,952
Accrued management and organization fees (Note 2)............................................................... 1,948
Accrued expenses................................................................................................ 57,713
-----------
Total Liabilities............................................................................................ 1,531,091
-----------
Total Net Assets............................................................................................. $84,329,343
===========
NET ASSETS
For variable annuity contracts.................................................................................. $81,388,651
Retained in The Managed Global Account of Separate Account D by Golden American (Note 2)........................ 2,940,692
-----------
Total Net Assets............................................................................................. $84,329,343
===========
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $84,160).......................................................... $ 715,084
----------
EXPENSES:
Mortality and expense risk and asset based administrative charges (Note 2)....................................... 414,452
Management and advisory fees (Note 2)............................................................................ 390,928
Custodian fees (Note 2).......................................................................................... 35,849
Accounting fees.................................................................................................. 27,614
Insurance expense................................................................................................ 13,231
Auditing fees.................................................................................................... 13,200
Printing and mailing expense..................................................................................... 9,101
Legal fees....................................................................................................... 5,612
Board of Governors' fees and expenses (Note 2)................................................................... 3,600
Other............................................................................................................ 10,097
----------
Total Expenses.............................................................................................. 923,684
Less amounts paid by the investment manager pursuant to expense limitation agreement (Note 2).................... (21,678)
----------
Net Expenses.................................................................................................. 902,006
----------
NET INVESTMENT LOSS................................................................................................ (186,922)
----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions......................................................................................... 1,801,730
Forward foreign currency exchange contracts................................................................... 778,864
Foreign currency transactions................................................................................. (8,509)
Net change in unrealized appreciation/(depreciation) of:
Securities.................................................................................................... 3,891,795
Forward foreign currency exchange contracts................................................................... 824,626
Other assets and liabilities denominated in foreign currencies................................................ (23,257)
----------
Net realized and unrealized gain on investments.................................................................. 7,265,249
----------
Net increase in net assets resulting from operations.......................................................... $7,078,327
==========
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, YEAR ENDED
1996 DECEMBER 31,
(UNAUDITED) 1995
----------------- -------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
OPERATIONS:
Net investment loss........................................................................... $ (186,922) $ (363,398)
Net realized gain/(loss) on securities, forward foreign currency exchange contracts and
foreign currency transactions.............................................................. 2,572,085 (4,171,926)
Net unrealized appreciation of securities, forward foreign currency exchange contracts and
other assets and liabilities denominated in foreign currencies............................. 4,693,164 8,120,321
----------- ------------
Net increase in net assets resulting from operations.......................................... 7,078,327 3,584,997
----------- ------------
CONTRACT RELATED TRANSACTIONS:
Premiums...................................................................................... 7,544,443 6,235,725
Benefits, surrenders and other withdrawals.................................................... (4,908,413) (9,881,861)
Net transfers (to) from Guaranteed Interest Division, Separate Account B, Golden American,
Fixed Interest Division and the Fixed Separate Account..................................... 2,670,595 (12,563,025)
Contract related charges and fees (Note 2).................................................... (430,716) (1,209,284)
----------- ------------
Net increase/(decrease) in net assets resulting from contract related transactions............ 4,875,909 (17,418,445)
----------- ------------
Net increase/(decrease) in net assets......................................................... 11,954,236 (13,833,448)
NET ASSETS:
Beginning of period........................................................................... 72,375,107 86,208,555
----------- ------------
End of period................................................................................. $84,329,343 $ 72,375,107
=========== ============
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
FOR AN ACCUMULATION UNIT OUTSTANDING THROUGHOUT EACH PERIOD FOR THE DVA 100
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR
06/30/96 ENDED ENDED ENDED
(UNAUDITED) 12/31/95 12/31/94** 12/31/93
----------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period............................ $ 9.659 $ 9.091 $ 10.518 $ 10.008
---------- --------- --------- --------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)#......................................... (0.022) (0.044) (0.030) (0.046)
Net realized and unrealized gain/(loss) on investments................ 0.949 0.612 (1.397) 0.556
---------- --------- --------- ---------
Total from investment operations...................................... 0.927 0.568 (1.427) 0.510
---------- --------- --------- ---------
Accumulation unit value, end of period................................ $ 10.586 $ 9.659 $ 9.091 $ 10.518
========= ========= ========= =========
Total return........................................................ 9.60 %++ 6.25 % (13.57)% 5.10 %
========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's).................................. $ 70,713 $ 68,283 $ 83,702 $ 85,702
Ratio of operating expenses to average net assets..................... 2.25 %+ 2.27 % 2.31 % 2.68 %
Decrease reflected in above expense ratio due to expense
limitations......................................................... 0.06 %+ 0.08 % 0.09 % 0.03 %
Ratio of net investment income/(loss) to average net assets........... (0.43)%+ (0.50)% (0.31)% (0.44)%
<CAPTION>
PERIOD
ENDED
12/31/92*
-----------
Accumulation unit value, beginning of period............................ $ 10.000
---------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)#......................................... 0.022
Net realized and unrealized gain/(loss) on investments................ (0.014)
---------
Total from investment operations...................................... 0.008
---------
Accumulation unit value, end of period................................ $ 10.008
=========
Total return........................................................ 0.08%++
=========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's).................................. $ 38,699
Ratio of operating expenses to average net assets..................... 2.46%+
Decrease reflected in above expense ratio due to expense
limitations......................................................... --
Ratio of net investment income/(loss) to average net assets........... 1.78%+
</TABLE>
- ------------------
* These units were available for sale on October 21, 1992.
** On July 1, 1994 Warburg, Pincus Counsellors, Inc. became Portfolio Manager
of the Account. Prior to that date the Account had been advised by another
Portfolio Manager.
+ Annualized
++ Non-annualized
# Per unit numbers have been calculated using the average unit method,
which more appropriately presents the per unit data for the period.
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
FOR AN ACCUMULATION UNIT OUTSTANDING THROUGHOUT EACH PERIOD FOR THE DVA 80
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR
06/30/96 ENDED ENDED
(UNAUDITED) 12/31/95 12/31/94**
----------- ----------- -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.......................................... $ 9.720 $ 9.130 $ 10.541
--------- --------- ---------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss#................................................................ (0.011) (0.027) (0.011)
Net realized and unrealized gain/(loss) on investments.............................. 0.954 0.617 (1.400)
--------- --------- ---------
Total from investment operations.................................................... 0.943 0.590 (1.411)
--------- --------- ---------
Accumulation unit value, end of period.............................................. $ 10.663 $ 9.720 $ 9.130
========= ========= =========
Total return...................................................................... 9.71 %++ 6.46 % (13.39)%
========= ========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)................................................ $ 1,349 $ 1,047 $ 1,877
Ratio of operating expenses to average net assets................................... 2.05 %+ 2.07 % 2.11 %
Decrease reflected in above expense ratio due to expense limitations................ 0.06 %+ 0.08 % 0.09 %
Ratio of net investment loss to average net assets.................................. (0.22)%+ (0.30)% (0.11)%
<CAPTION>
PERIOD
ENDED
12/31/93*
-----------
Accumulation unit value, beginning of period.......................................... $ 10.420
---------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss#................................................................ (0.005)
Net realized and unrealized gain/(loss) on investments.............................. 0.126
---------
Total from investment operations.................................................... 0.121
---------
Accumulation unit value, end of period.............................................. $ 10.541
=========
Total return...................................................................... 1.16 %++
=========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)................................................ $ 2,087
Ratio of operating expenses to average net assets................................... 2.48 %+
Decrease reflected in above expense ratio due to expense limitations................ 0.03 %+
Ratio of net investment loss to average net assets.................................. (0.24)%+
</TABLE>
- ------------------
<TABLE>
<S> <C>
* These units were available for sale on October 14, 1993.
** On July 1, 1994 Warburg, Pincus Counsellors, Inc. became Portfolio Manager
of the Account. Prior to that date the Account had been advised by another
Portfolio Manager.
+ Annualized
++ Non-annualized
# Per unit numbers have been calculated using the average unit method, which
more appropriately presents the per unit data for the period.
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
FOR AN ACCUMULATION UNIT OUTSTANDING THROUGHOUT EACH PERIOD FOR THE DVA SERIES
100
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR
06/30/96 ENDED ENDED
(UNAUDITED) 12/31/95 12/31/94**
----------- ----------- -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period....................................... $ 9.558 $ 9.027 $ 10.481
--------- --------- ---------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss#............................................................. (0.040) (0.076) (0.066)
Net realized and unrealized gain/(loss) on investments........................... 0.939 0.607 (1.388)
--------- --------- ---------
Total from investment operations................................................. 0.899 0.531 (1.454)
--------- --------- ---------
Accumulation unit value, end of period........................................... $ 10.457 $ 9.558 $ 9.027
========= ========= =========
Total return................................................................... 9.41 %++ 5.87 % (13.87)%
========= ========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)............................................. $ 709 $ 545 $ 630
Ratio of operating expenses to average net assets................................ 2.60 %+ 2.62 % 2.66 %
Decrease reflected in above expense ratio due to expense limitations............. 0.06 %+ 0.08 % 0.09 %
Ratio of net investment loss to average net assets............................... (0.78)%+ (0.85)% (0.66)%
<CAPTION>
PERIOD
ENDED
12/31/93*
-----------
Accumulation unit value, beginning of period....................................... $ 10.536
---------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss#............................................................. (0.036)
Net realized and unrealized gain/(loss) on investments........................... (0.019)
---------
Total from investment operations................................................. (0.055)
---------
Accumulation unit value, end of period........................................... $ 10.481
=========
Total return................................................................... (0.52)%++
=========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)............................................. $ 688
Ratio of operating expenses to average net assets................................ 3.02 %+
Decrease reflected in above expense ratio due to expense limitations............. 0.03 %+
Ratio of net investment loss to average net assets............................... (0.79)%+
</TABLE>
- ------------------
* These units were available for sale on April 27, 1993.
** On July 1, 1994 Warburg, Pincus Counsellors, Inc. became Portfolio Manager
of the Account. Prior to that date the Account had been advised by another
Portfolio Manager.
+ Annualized
++ Non-annualized
# Per unit numbers have been calculated using the average unit method, which
more appropriately presents the per unit data for the period.
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
FOR AN ACCUMULATION UNIT OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
DVA PLUS--
DVA PLUS -- STANDARD ANNUAL RATCHET DVA PLUS -- 7% SOLUTION
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED PERIOD
06/30/96 ENDED 06/30/96 ENDED 06/30/96 ENDED
(UNAUDITED) 12/31/95* (UNAUDITED) 12/31/95* (UNAUDITED) 12/31/95*
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period....... $ 9.576 $ 9.323 $ 9.531 $ 9.282 $ 9.486 $ 9.240
--------- --------- --------- --------- --------- ---------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss#............................. (0.033) (0.013) (0.040) (0.013) (0.047) (0.013)
Net realized and unrealized gain on
investments.................................... 0.939 0.266 0.934 0.262 0.929 0.259
--------- --------- --------- --------- --------- ---------
Total from investment operations................. 0.906 0.253 0.894 0.249 0.882 0.246
--------- --------- --------- --------- --------- ---------
Accumulation unit value, end of period........... $ 10.482 $ 9.576 $ 10.425 $ 9.531 $ 10.368 $ 9.486
========= ========= ========= ========= ========= =========
Total return................................... 9.46 %++ 2.71 %++ 9.38 %++ 2.69 %++ 9.30 %++ 2.66 %++
========= ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)............. $ 1,459 $ 256 $ 1,422 $ 262 $ 8,677 $ 1,982
Ratio of operating expenses to average net
assets......................................... 2.50 %+ 2.40 %+ 2.65 %+ 2.55 %+ 2.80 %+ 2.60 %+
Decrease reflected in above expense ratio due to
expense limitations............................ 0.06 %+ 0.08 %+ 0.06 %+ 0.08 %+ 0.06 %+ 0.08 %+
Ratio of net investment loss to average net
assets......................................... (0.65)%+ (0.63)%+ (0.80)%+ (0.78)%+ (0.96)%+ (0.83)%+
</TABLE>
- ------------------
* These units were available for sale on October 2, 1995.
+ Annualized
++ Non-annualized
# Per unit numbers have been calculated using the average unit method, which
more appropriately presents the per unit data for the period.
See Notes to Financial Statements.
10
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------------- -----------
COMMON STOCKS -- 90.6%
ARGENTINA -- 3.4%
2,318 Banco de Galicia Y Buenos Aires
S.A., ADR....................... $ 59,978
21,045 Banco Frances del Rio de la
Plata S.A....................... 200,002
19,320 Banco Frances del Rio de la Plata
S.A., ADR....................... 555,450
18,400 Capex S.A., Class A, GDR**........ 303,600
42,300 Telefonica De Argentina S.A.,
ADR............................. 1,253,138
21,800 Y.P.F. S.A., ADR.................. 490,500
-----------
2,862,668
-----------
AUSTRALIA -- 3.2%
97,000 Boral Ltd......................... 251,551
106,380 Lend Lease Corporation............ 1,630,176
51,375 Niugini Mining Ltd.+.............. 106,988
213,559 Novus Petroleum Ltd............... 310,477
274,500 Pasminco Ltd...................... 386,131
-----------
2,685,323
-----------
AUSTRIA -- 0.5%
3,100 V.A. Technologie AG............... 381,182
-----------
BELGIUM -- 0.2%
1,300 Barco Industries.................. 208,515
-----------
BRAZIL -- 0.8%
15,300 Panamerican Beverages Inc., Class
A............................... 684,675
-----------
CHILE -- 0.2%
5,300 Enersis S.A., ADR................. 164,300
-----------
CHINA -- 0.7%
135,000 Henderson China Holdings.......... 301,715
15,000 Jilan Chemical Industrial
Co. Ltd., ADR................... 275,625
-----------
577,340
-----------
DENMARK -- 0.3%
11,100 International Service Systems A/S,
Class B......................... 248,182
-----------
FINLAND -- 1.4%
70,750 Metsa-Serla, Class B.............. 503,613
500 Metra AB, Class B................. 22,433
41,400 Valmet Corporation,............... 701,014
-----------
1,227,060
-----------
FRANCE -- 6.3%
10,000 Assurances General de France...... 270,982
3,600 Cetelem........................... 809,793
2,200 Compagnie Bancaire S.A............ 248,044
700 Group Axime....................... 97,973
47,300 Largardere Groupe................. 1,220,141
6,351 Scor S.A.......................... 247,534
4,597 Total S.A., ADS................... 170,664
19,671 Total S.A., Class B............... 1,459,958
57,000 Usinor Sacilor.................... 822,715
-----------
5,347,804
-----------
GERMANY -- 3.1%
10,300 Adidas AG......................... 866,320
11,500 Adidas AG, ADR**.................. 480,473
10,500 SGL Carbon AG..................... 1,229,080
-----------
2,575,873
-----------
VALUE
SHARES (NOTE 1)
- --------------- -----------
GREAT BRITAIN -- 6.4%
120,955 British Airport Authority PLC..... $ 877,054
251,188 Cookson Group PLC................. 1,104,930
65,370 Grand Metropolitan PLC............ 433,868
50,000 London Pacific Group Ltd.......... 200,122
31,815 Reckitt & Colman PLC.............. 335,285
183,254 Rolls Royce....................... 638,043
280,000 Singer & Friedlander Group PLC.... 496,148
230,400 Takare PLC........................ 465,559
230,000 Vodafone Group.................... 856,213
-----------
5,407,222
-----------
HONG KONG -- 5.0%
518,000 Citic Pacific Ltd................. 2,094,552
328,947 Guangshen Railway Company Ltd..... 124,299
11,679 Guangshen Railway Company Ltd.,
ADR+............................ 223,361
151,000 Hong Kong Land Holdings........... 339,750
28,400 Hong Kong Land Holdings, ADR...... 315,950
151,801 Jardine Matheson Holdings Ltd.,
ADR............................. 1,115,737
-----------
4,213,649
-----------
INDIA -- 1.1%
31,100 Indorama Synthetics, GDR+......... 396,525
41,200 Reliance Industries Ltd., GDS..... 545,900
-----------
942,425
-----------
INDONESIA -- 1.5%
37,550 PT Bank International Indonesia
(Foreign)....................... 185,532
229,740 PT Mulia Industrindo (Foreign).... 340,538
9,500 PT Sinar Mas (Foreign)............ 11,633
80,000 PT Steady Safe (Foreign).......... 109,989
1,100 PT Telekomunikasi Indonesia,
ADR............................. 32,725
192,000 PT Telekomunikasi Indonesia
(Foreign)....................... 290,784
66,000 PT Semen Cibinong (Foreign)....... 148,872
44,500 PT Semen Gresik (Foreign)......... 129,533
-----------
1,249,606
-----------
ISRAEL -- 1.0%
35,000 ECI Telecom, Ltd., ADR............ 813,750
-----------
JAPAN -- 28.2%
149,000 Canon Inc......................... 3,105,302
26,000 Circle K Japan Company Ltd........ 1,349,909
170 DDI Corporation................... 1,485,557
458 East Japan Railway Company........ 2,407,221
89,000 Hitachi Ltd....................... 829,799
2,500 Keyence Corporation............... 340,494
75,000 Kirin Beverage Corporation........ 1,103,748
11,000 Murata Manufacturing Company
Ltd............................. 417,276
54,000 NEC Corporation................... 587,386
27,000 Nippon Communication Systems
Corporation..................... 365,265
267 Nippon Telegraph & Telephone
Corporation..................... 1,981,755
See Notes to Financial Statements.
11
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------------- -----------
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
250,000 NKK Corporation................... $ 758,684
15,000 Noritsu Koki Company Ltd.......... 759,598
54 NTT Data Communication Systems
Corporation..................... 1,619,013
40,800 Orix Corporation.................. 1,514,150
22,000 Pioneer Electric Corporation...... 524,863
6,000 Rohm Company...................... 397,075
20,000 Sony Corporation.................. 1,318,099
33,000 TDK Corporation................... 1,972,761
3,000 UNY Company....................... 59,506
21,600 York-Benimaru Company Ltd......... 860,841
-----------
23,758,302
-----------
KOREA -- 4.2%
75,000 Hyundai Engineering, GDR.......... 965,625
26,600 Mando Machinery Corporation,
GDR............................. 638,400
40,300 Mando Machinery Corporation,
GDR**........................... 967,200
5,974 Samsung Electronics Ltd., ( 1/2
voting) GDR**................... 306,168
1,800 Samsung Electronics Ltd., ( 1/2
voting) GDR (New)**............. 92,272
25,000 Samsung Electronics Ltd., ( 1/2
non-voting) GDR+................ 606,250
-----------
3,575,915
-----------
MALAYSIA -- 0.6%
94,000 Land & General BHD................ 231,750
75,000 Westmont Industries BHD........... 131,690
105,000 Westmont Industries BHD, A
Shares.......................... 174,263
-----------
537,703
-----------
MEXICO -- 0.5%
97,650 Gruma S.A., Series B.............. 451,881
-----------
NEW ZEALAND -- 5.5%
1,313,354 Brierley Investments Ltd.......... 1,246,951
218,075 Fletcher Challenge (Building
Division) Ltd.+................. 427,602
66,575 Fletcher Challenge (Energy
Division) Ltd.+................. 147,488
502,522 Fletcher Challenge (Forest
Division) Ltd................... 625,781
133,150 Fletcher Challenge (Paper
Division) Ltd................... 258,332
538,800 Lion Nathan Ltd................... 1,412,346
118,000 Sky City Ltd.+.................... 515,518
-----------
4,634,018
-----------
NORWAY -- 1.3%
168,000 Den Norske Bank................... 509,950
12,700 Norsk Hydro AS, ADR............... 620,712
-----------
1,130,662
-----------
PAKISTAN -- 0.3%
241,000 Pakistan Telecommunications
Corporation+.................... 275,389
-----------
VALUE
SHARES (NOTE 1)
- --------------- -----------
PORTUGAL -- 1.6%
25,000 Portugal Telecommunication S.A.... $ 653,625
25,000 Portugal Telecommunication S.A.,
ADR............................. 656,250
-----------
1,309,875
-----------
SINGAPORE -- 2.0%
65,000 D.B.S. Land Ltd................... 222,962
119,000 Development Bank of Singapore
Ltd............................. 1,484,337
-----------
1,707,299
-----------
SPAIN -- 3.4%
42,400 Banco de Santander S.A., ADR...... 1,966,300
86,000 Iberdrola S.A..................... 883,481
-----------
2,849,781
-----------
SWEDEN -- 2.5%
6,300 ABB AB, Class B................... 667,014
32,400 Astra AB, Class B................. 1,414,227
-----------
2,081,241
-----------
SWITZERLAND -- 1.4%
615 ABB AG............................ 761,616
200 Ciba-Geigy AG..................... 242,880
150 Danzas Holding AG................. 163,200
-----------
1,167,696
-----------
TAIWAN -- 2.7%
1,680,000 GP Taiwan Index Fund+............. 1,646,400
50,000 Hocheng, GDR**.................... 618,750
-----------
2,265,150
-----------
THAILAND -- 1.3%
8,200 Bangkok Bank (Foreign)............ 111,108
146,800 Industrial Finance Corporation of
Thailand (Foreign).............. 659,178
81,400 Thai Military Bank Ltd.
(Foreign)....................... 320,624
-----------
1,090,910
-----------
Total Common Stocks
(Cost $69,552,211).............. 76,425,396
-----------
WARRANT -- 0.0%# (Cost $20,647)
SWITZERLAND -- 0.0%#
600 Danzas Holding AG,
Expires 08/02/1996.............. 264
-----------
PRINCIPAL
AMOUNT
- ---------------
CONVERTIBLE CORPORATE BONDS -- 5.4%
JAPAN -- 1.6%
JPY 111,000,000 Matsushita Electric Works Ltd.,
2.700% due 05/31/2002........... 1,298,720
-----------
TAIWAN -- 3.6%
$1,870,000 President Enterprise Corporation,
Zero coupon due 07/22/2001...... 3,064,462
-----------
THAILAND -- 0.2%
160,000 Bangkok Bank,
3.250% due 03/03/2004........... 182,160
-----------
Total Convertible Corporate Bonds
(Cost $3,876,778)............... 4,545,342
-----------
See Notes to Financial Statements.
12
<PAGE>
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
THE MANAGED GLOBAL
ACCOUNT OF SEPARATE
ACCOUNT D JUNE 30, 1996
(UNAUDITED)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------- -----------
REPURCHASE AGREEMENT -- 2.2% (Cost $1,836,000)
$1,836,000 Agreement with Goldman Sachs Group,
5.250% dated 06/28/1996 to be
repurchased at $1,836,803 on
07/01/1996, collateralized by
$1,715,000 U.S. Treasury Note,
8.500% due 02/15/2000 (value
$1,877,425)....................... $ 1,836,000
-----------
NUMBER OF EXPIRATION STRIKE
CONTRACTS DATE PRICE
- --------- ---------- ----------
CALL STOCK OPTION PURCHASED -- 0.2% (Cost $300,007)
23,966,029 kospi 200 Index....... 12/31/1996 $ 0.12 173,226
-----------
TOTAL INVESTMENTS (COST $75,585,643)
(NOTES 1 AND 3)............................. 98.4% 82,980,228
OTHER ASSETS AND LIABILITIES (NET)............ 1.6 1,349,115
----- -----------
NET ASSETS.................................... 100.0% $84,329,343
===== ===========
- ------------------
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
+ Non-income producing security.
# Amount is less than 0.1%.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt.
ADS -- American Depositary Share.
GDR -- Global Depositary Receipt.
GDS -- Global Depositary Share.
JPY -- Japanese Yen.
See Notes to Financial Statements.
13
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
JUNE 30, 1996 (UNAUDITED)
JUNE 30, 1996, INDUSTRY CLASSIFICATION OF THE FUND WAS AS FOLLOWS:
% OF VALUE
INDUSTRY CLASSIFICATION NET ASSETS (NOTE 1)
- -------------------------------------- ------------- -----------
LONG TERM INVESTMENTS:
Financial Services.................... 15.8% $13,342,219
Electronics........................... 13.0 10,982,111
Telecommunications.................... 12.2 10,315,275
Consumer.............................. 8.7 7,357,691
Industrial............................ 8.2 6,882,916
Multi-Industry Companies.............. 7.7 6,503,334
Energy................................ 5.0 4,212,728
Transportation........................ 3.5 2,918,345
Resources............................. 3.3 2,778,828
Manufacturing......................... 2.6 2,231,391
Food and Beverage Products............ 2.6 2,169,013
Engineering........................... 2.5 2,130,856
Drugs................................. 2.0 1,657,107
Forest/Paper.......................... 1.9 1,619,476
Real Estate........................... 1.4 1,180,377
Basic Industries...................... 1.0 824,305
Other................................. 4.8 4,038,256
----- -----------
TOTAL LONG TERM INVESTMENTS........... 96.2 81,144,228
REPURCHASE AGREEMENT.................. 2.2 1,836,000
----- -----------
TOTAL INVESTMENTS..................... 98.4 82,980,228
OTHER ASSETS AND LIABILITIES (NET) ... 1.6 1,349,115
----- -----------
NET ASSETS............................ 100.0% $84,329,343
===== ===========
SCHEDULE OF
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO BUY
CONTRACTS TO RECEIVE
- ----------------------------- IN VALUE IN UNREALIZED
EXPIRATION LOCAL EXCHANGE U.S. $ APPRECIATION/
DATE CURRENCY FOR U.S. $ (NOTE 1) DEPRECIATION
- ---------- ----------------- ---------- ---------- -------------
07/02/1996 GBP 259,339 399,512 403,100 $ 3,588
07/03/1996 GBP 226,872 350,677 352,634 1,957
03/05/1997 JPY 1,320,800,000 12,860,759 12,508,721 (352,038)
-----------
$ (346,493)
-----------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO SELL
CONTRACTS TO DELIVER
- ----------------------------- IN VALUE IN UNREALIZED
EXPIRATION LOCAL EXCHANGE U.S. $ APPRECIATION/
DATE CURRENCY FOR U.S. $ (NOTE 1) DEPRECIATION
- ---------- ----------------- ---------- ---------- -------------
07/08/1996 ATS 5,152,027 481,246 481,559 $ (313)
07/08/1996 ATS 6,533,357 608,949 610,670 (1,721)
09/24/1996 FRF 19,600,000 3,904,382 3,825,664 78,718
03/05/1997 JPY 1,109,515,000 11,000,000 10,507,733 492,267
03/05/1997 JPY 1,112,650,000 11,000,000 10,537,423 462,577
03/05/1997 JPY 1,320,800,000 13,000,000 12,508,721 491,279
-----------
$ 1,522,807
-----------
Net Unrealized Appreciation of Forward Foreign
Exchange Contracts................................... $ 1,176,314
===========
GLOSSARY OF TERMS
ATS -- Australian Schilling
FRF -- French Franc
GBP -- Great Britain Pound Sterling
JPY -- Japanese Yen
See Notes to Financial Statements.
14
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Managed Global Account of Separate Account D (the 'Account') is registered
with the Securities and Exchange Commission under the Investment Company Act of
1940, as amended, as a non-diversified open-end investment company and meets the
definition of a separate account under federal securities laws. The Account was
established on April 18, 1990, by Golden American Life Insurance Company
('Golden American'), to support the operations of variable annuity contracts
('Contracts'). Golden American, a wholly owned subsidiary of BT Variable, Inc.
('BTV'), an indirect subsidiary of Bankers Trust Company ('Bankers Trust'), is a
stock life insurance company organized under the laws of the state of Delaware
(See Note 6). Golden American is primarily engaged in the issuance of variable
insurance products and is authorized to do business in the District of Columbia
and in all states except New York.
Operations on the Account commenced on October 21, 1992. Golden American
provides for variable accumulation and benefits under the Contracts by crediting
annuity considerations to the Account or to the Golden American Guaranteed
Interest Division, the Golden American Fixed Interest Division, the Fixed
Separate Account and Separate Account B. The assets of the Account are owned by
Golden American. The portion of the Account's assets applicable to Contracts
will not be chargeable with liabilities arising out of any other business Golden
American may conduct, but obligations of the Account, including the promise to
make benefit payments, are obligations of Golden American.
The net assets maintained in the Account provide the basis for the periodic
determination of the amount of benefits under the Contracts. The net assets may
not be less than the reserves and other contract liabilities with respect to the
Account. Golden American has entered into a reinsurance agreement with an
affiliated reinsurer to cover insurance risks under the Contracts. Golden
American remains liable to the extent that the reinsurer does not meet its
obligations under the reinsurance agreement.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of the
significant accounting policies consistently followed by the Account in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
(A) VALUATION: Domestic and foreign portfolio securities including options,
except as noted below, for which market quotations are readily available are
stated at market value. Market value is determined on the basis of the last
reported sales price in the principal market where such securities are traded
or, if no sales are reported, the mean between representative bid and asked
quotations obtained from a quotation reporting system or from established market
makers.
Debt securities, including those to be purchased under firm commitment
agreements, are normally valued on the basis of quotes obtained from brokers and
dealers or pricing services, which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data. Under certain circumstances, debt securities having a maturity of sixty
days or less may be valued at amortized cost which approximates fair value.
Amortized cost involves valuing a portfolio security instrument at its cost,
initially, and thereafter, assuming a constant amortization to maturity of any
discount or premium, regardless of the impact of fluctuating interest rates on
the market value of the instrument.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by, or under the direction of the Board
of Governors.
(B) DERIVATIVE FINANCIAL INSTRUMENTS: The Account may engage in various
portfolio strategies, as described below, to seek to manage its exposure to
equity markets and to manage fluctuations in foreign currency rates. Forward
foreign currency exchange contracts to buy, writing puts and buying calls tend
to increase the Account's exposure to the underlying market or currency. Forward
foreign exchange contracts to sell, buying puts and writing calls tend to
decrease the Account's exposure to the underlying market or currency. In some
instances, investments in derivative financial instruments may involve, to
varying degrees, elements of market risk and risks in excess of the amount
recognized in the Statement of Assets and Liabilities. Losses may arise under
these contracts due to the existence of an illiquid secondary market for the
contracts, or if the counterparty does not perform under the contract. An
additional primary risk associated with the use of certain of these contracts
may be caused by an imperfect correlation between movements in the price of the
derivative financial instruments and the price of the underlying securities,
indices or currency.
15
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The Account may enter into forward
foreign currency exchange contracts for hedging and non-hedging purposes. During
the six months ended June 30, 1996, the Account only entered into forward
foreign currency exchange contracts to hedge against fluctuations in currency
exchange rates. Forward foreign currency exchange contracts are valued at the
applicable forward rate, and are marked to market daily. The change in market
value is recorded by the Account as an unrealized gain or loss. When a contract
is closed, the Account records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed. Although forward foreign currency exchange contracts limit
the risk of loss due to a decline in the value of the hedged currency, they also
limit any potential gain that might result should the value of the currency
increase. In addition, the Account could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts.
Open contracts at June 30, 1996 and their related unrealized
appreciation/(depreciation) are set forth in the Schedule of Forward Foreign
Currency Exchange Contracts which accompanies the Portfolio of Investments.
Realized and unrealized gain/(loss) arriving from forward foreign currency
exchange contracts are included in net realized and unrealized gain/(loss) on
forward foreign currency exchange contracts.
OPTIONS: The Account may engage in option transactions including purchasing
options on securities and securities indexes ('purchased options') and writing
covered call and secured put options ('written options'). Generally, purchased
options are utilized to protect security holdings in a portfolio or protect
against substantial increases in market prices in securities to be acquired in
the future. The Account may use written options to generate additional income,
protect partially against declines in the value of portfolio securities or
facilitate the Account's ability to purchase a security at a price lower than
the security's current market price. Option transactions may be engaged on
exchanges and on over-the-counter markets. When the Account writes an option, an
amount equal to the premium received by the Account is reflected as an asset and
an equivalent liability. The amount of the liability is subsequently marked to
market on a daily basis to reflect the current value of the option written.
When a security is sold through an exercise of an option, the related premium
received (or paid) is deducted from (or added to) the basis of the security
sold. When an option expires (or the Account enters into a closing transaction),
the Account realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the premium paid or received). The Account
did not write options during the six months ended June 30, 1996. Realized gains
arising from purchased options are included in the net realized gain/(loss) on
security transactions.
(C) FOREIGN CURRENCY: Assets and liabilities, including foreign portfolio
securities, denominated in foreign currencies and commitments under forward
foreign currency exchange contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar as
of the close of business immediately preceding the time of valuation. Purchases
and sales of portfolio securities are translated at the rates of exchange
prevailing when such securities were acquired or sold. Income and expenses are
translated at rates of exchange prevailing when accrued.
The Account does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain/(loss) from securities.
Reported net realized gains or losses on foreign currency transactions arise
from sales and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, and the difference between the amounts of dividends,
interest and foreign withholding taxes recorded on the Account's books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
gains and losses on other assets and liabilities denominated in foreign
currencies arise from changes in the value of assets and liabilities other than
investments in securities at the end of the reporting period, resulting from
changes in the exchange rate.
(D) REPURCHASE AGREEMENTS: The Account may enter into repurchase agreements in
accordance with guidelines approved by the Board of Governors of the Account.
The Account bears a risk of loss in the event that the other party to a
repurchase agreement defaults on its obligations and the Account is delayed or
prevented from exercising its rights to dispose of the underlying securities
received as collateral including the risk of a possible decline in the value of
the underlying securities during the period while the Account seeks to exercise
its rights. The Account takes possession of the collateral and reviews the value
of the collateral and the creditworthiness of those banks and dealers with which
the Account enters into repurchase
16
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
agreements to evaluate potential risks. The market value of the underlying
securities received as collateral must be at least equal to the total amount of
the repurchase obligation. In the event of counterparty default, the Account has
the right to use the underlying securities to offset the loss.
(E) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
recorded on the trade date. Dividend income is recorded on the ex-dividend date.
Interest income (including amortization of premium and discount on securities)
and expenses are accrued daily. Realized gains and losses from investment
transactions are recorded on an identified cost basis which is the same basis
used for federal income tax purposes.
(F) FEDERAL INCOME TAXES: Operations of the Account form a part of, and are
taxed with, the total operations of Golden American, which is taxed as a life
insurance company under the Internal Revenue Code. Earnings and realized capital
gains of the Account attributable to the contractowners are excluded in the
determination of the federal income tax liability of Golden American.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
OPERATING EXPENSES: Directed Services, Inc. ('DSI'), a wholly owned subsidiary
of BTV, serves as Manager to the Account pursuant to a Management Agreement (See
Note 6). Under the Management Agreement, DSI has overall responsibility, subject
to the supervision of the Board of Governors, for administrating all operations
of the Account and for monitoring and evaluating the management of the assets of
the Account by the Portfolio Manager. In consideration for these services, the
Account pays DSI a management fee based upon the following annual percentage of
the Account's average daily net assets: 0.40% of the first $500 million and
0.30% of the amount over $500 million. Warburg, Pincus Counsellors, Inc.
('Warburg') serves as the Portfolio Manager of the Account and in that capacity
provides investment advisory services for the Account including asset allocation
and security selection. In consideration for these services, Warburg is paid an
advisory fee by the Account, payable monthly, based on the average daily net
assets of the Account at an annual rate of 0.60% of the first $500 million and
0.50% on the excess thereof. For the six months ended June 30, 1996, the Account
incurred management and advisory fees of $156,371 and $234,557, respectively.
The Account bears the expenses of its investment management operations,
including expenses associated with custody of securities, portfolio accounting,
the Board of Governors, legal and auditing services, registration fees and other
related operating expenses. Bankers Trust is the custodian of the assets in the
Account. For the six months ended June 30, 1996, the Account incurred $35,849
for custodian fees. In addition, the Account reimburses Golden American for
certain organization expenses (See Note 4). At June 30, 1996, a total of $1,948
was payable to DSI and Golden American for management and reimbursement of
organization expenses.
Certain officers and governors of the Account are also officers and/or directors
of the Manager, Golden American, BTV and Bankers Trust (See Note 6).
MORTALITY AND EXPENSE RISK CHARGES: Golden American assumes mortality and
expense risks related to the operations of the Account and, in accordance with
the terms of the Contracts, deducts a daily charge from the assets of the
Account at annual rates of 0.80%, 0.90%, 1.25%, 1.10%, 1.25% and 1.40% of the
assets attributable to DVA 80, DVA 100, DVA Series 100, DVA Plus-Standard, DVA
Plus -- Annual Ratchet and DVA Plus -- 7% Solution, respectively, to cover these
risks.
ASSET-BASED ADMINISTRATIVE CHARGE: To compensate Golden American for the
administrative expenses under the Contracts, a daily charge at an annual rate of
0.10% is deducted from assets attributable to the DVA 100 and DVA Series 100
Contracts. A daily charge of 0.15% is deducted from the assets attributable to
each of the three DVA Plus Contracts.
OTHER CONTRACT CHARGES: An administrative fee of $40 per Contract year is
deducted from the accumulation value of certain DVA 80, DVA 100 and DVA Plus
Contracts. Under DVA Plus Contracts, an excess allocation charge of $25 per
allocation may be imposed by Golden American after the twelfth allocation change
in a contract year. Under DVA 80, DVA 100 and DVA Series 100 Contracts
('Previous Contracts'), a partial withdrawal charge of the lower of 2% of the
withdrawal or $25 is deducted from the accumulation for each additional partial
withdrawal in a Contract year. In addition, under the Previous Contracts, there
is an excess allocation charge of $25 for each allocation change between
divisions in excess of the five free charges allowed per contract year.
17
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES--(CONTINUED)
DEFERRED SALES LOAD: Under the Previous Contracts, a sales load of up to 7.50%
was applicable to each premium payment for sales related expenses as specified
in the respective Contracts. For DVA Series 100 Contracts, the sales load is
deducted in equal annual installments over the period the Contract is in force,
not to exceed 10 years. For DVA 80 and DVA 100 Contracts, although the sales
load is chargeable to each premium when it is received by Golden American, the
amount of such charge is initially advanced by Golden American to Contractowners
and included in the accumulation value and then deducted in equal installments
on each Contract processing date over a period of six years. For the six months
ended June 30, 1996, contract sales loads of $400,100 initially advanced by
Golden American to the Account were deducted from contractowners' accumulation
value. Upon surrender of the Contract, the unamortized deferred sales load is
deducted from the accumulation value by Golden American. In addition, when
partial withdrawal limits are exceeded, a portion of the unamortized deferred
sales load is deducted.
CONTINGENT DEFERRED SALES CHARGE: Under DVA Plus Contracts, a contingent
deferred sales charge ('Surrender Charges') is imposed as a percentage of each
premium payment if the Contract is surrendered or an excess partial withdrawal
is taken during the seven year period from the date a premium payment is
received. The Surrender Charges are imposed at a rate of 7% of the premium
payment during the first two complete years after purchase declining to 6%, 5%,
4%, 3%, and 1% after the second, third, fourth, fifth and sixth complete years,
respectively. For the six months ended June 30, 1996, Golden American collected
Surrender Charges in the amount of $692.
The net assets retained in the Account by Golden American in the accompanying
financial statements represent the unamortized deferred sales load, surrender
charges and premium taxes advanced by Golden American reduced to conform with
the Commissioner's Annuity Reserve Valuation Methodology ('CARVM').
Net Assets Retained in the Account by Golden American are as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
06/30/1996 12/31/1995
------------ ------------
<S> <C> <C>
Balance at beginning of period.................................................... $2,875,394 $4,533,964
Sales load advanced and additions to surrender charges............................ 507,616 379,811
Premium tax advanced.............................................................. 678 2,628
Net transfer (to) from Separate Account B, Fixed Account and Golden American...... (25,440) (899,808)
Amortization of deferred sales load, surrender charges and premium tax............ (417,556) (1,141,201)
---------- ----------
Balance at end of period.......................................................... $2,940,692 $2,875,394
========== ==========
</TABLE>
PREMIUM TAXES: Premium taxes are deducted, where applicable, from the
accumulation value of each Contract. The amount and timing of the deduction
depend on the annuitant's state of residence and currently ranges up to 3.5% of
premiums. Premium taxes are generally incurred on the annuity commencement date
and a charge for such premium taxes is then deducted from the accumulation value
of such date. However, some jurisdictions impose a premium tax at the time the
initial and additional premiums are paid, regardless of the annuity commencement
date. In those states, Golden American advances the amount of the charge for
premium taxes to Contractowners and then deducts it from the accumulation value
in equal installments on each contract processing date over a six year period.
Golden American is currently waiving the deduction of the applicable
installments of the charge for premium taxes previously advanced by Golden
American to Contractowners. Golden American reserves the right to deduct the
total amount of the charge for premium taxes previously waived and unrecovered
on the annuity commencement date or upon surrender of the Contract.
EXPENSE LIMITATION: The Account and DSI entered into an agreement to limit the
ordinary operating expenses of the Account, excluding, among other things,
mortality and expense risk charges, asset-based administrative charges, interest
expense, and other contractual charges, so that such expenses do not exceed on
an annual basis 1.25% of the first $500 million of the average daily net assets
and 1.05% of the excess over $500 million. It is anticipated that this agreement
will remain in effect until the proposed reorganization of the Account is
consummated (See Note 6). For the six months ended June 30, 1996, $21,678 was
reimbursed by DSI to the Account pursuant to this limitation. Such agreement
existed under the same terms for the year ended December 31, 1995.
18
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES--(CONTINUED)
DSI, a registered broker/dealer, acts as the distributor and principal
underwriter (as defined in the Securities Act of 1933 and the Investment Company
Act of 1940, as amended) of the Contracts issued through the Account. For the
six months ended June 30, 1996 and the year ended December 31, 1995, fees paid
by Golden American to DSI in connection with sales of the contracts aggregated
approximately $455,000 and $446,000, respectively.
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities, excluding short-term securities,
during the six months ended June 30, 1996, were $21,446,382 and $16,760,882,
respectively.
At June 30, 1996, aggregate gross unrealized appreciation for all securities in
which there is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost over
value were $11,563,888 and $4,169,303, respectively.
For the six months ended June 30, 1996 and the year ended December 31, 1995, the
portfolio turnover rate was 22% and 44%, respectively.
4. ORGANIZATION COSTS
The initial organizational expenses of the Account of approximately $150,000
were paid by Golden American. The Account reimburses Golden American monthly for
such expenses ratably over a period of sixty months from the date of the
Account's commencement of operations. At June 30, 1996, the unamortized balance
of such expenses was $65,670. It is Golden American's intention not to seek any
further reimbursement for any unpaid amounts upon the reorganization of the
Account (See Note 6).
5. INCREASE/(DECREASE) IN ACCUMULATION UNITS
SIX MONTHS
ENDED YEAR ENDED
06/30/1996 12/31/1995
----------- ------------
DVA 100
Units purchased................................... 504,795 409,418
Units redeemed.................................... (894,330) (2,561,328)
----------- ------------
Net Decrease................................... (389,535) (2,151,910)
Units at the beginning of the period................ 7,073,705 9,225,615
----------- ------------
Units at the end of the period...................... 6,684,170 7,073,705
=========== ============
DVA 80
Units purchased................................... 145,590 66,593
Units redeemed.................................... (126,813) (164,429)
----------- ------------
Net Increase/(Decrease)........................ 18,777 (97,836)
Units at the beginning of the period................ 107,728 205,564
----------- ------------
Units at the end of the period...................... 126,505 107,728
=========== ============
DVA Series 100
Units purchased................................... 22,013 27,026
Units redeemed.................................... (11,183) (39,838)
----------- ------------
Net Increase/(Decrease)........................ 10,830 (12,812)
Units at the beginning of the period................ 56,983 69,795
----------- ------------
Units at the end of the period...................... 67,813 56,983
=========== ============
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
THE MANAGED GLOBAL ACCOUNT
OF
SEPARATE ACCOUNT D
5. INCREASE/(DECREASE) IN ACCUMULATION UNITS--(CONTINUED)
SIX MONTHS
ENDED PERIOD ENDED
06/30/1996 12/31/1995*
----------- ------------
DVA Plus -- Standard
Units purchased.................................... 128,013 43,964
Units redeemed..................................... (15,531) (17,239)
----------- ------------
Net Increase.................................... 112,482 26,725
Units at the beginning of the period................. 26,725 0
----------- ------------
Units at the end of the period....................... 139,207 26,725
=========== ============
DVA Plus -- Annual Ratchet
Units purchased.................................... 116,663 29,267
Units redeemed..................................... (7,680) (1,811)
----------- ------------
Net Increase.................................... 108,983 27,456
Units at the beginning of the period................. 27,456 0
----------- ------------
Units at the end of the period....................... 136,439 27,456
=========== ============
DVA Plus -- 7% Solution
Units purchased.................................... 635,342 209,355
Units redeemed..................................... (7,408) (345)
----------- ------------
Net Increase.................................... 627,934 209,010
Units at the beginning of the period................. 209,010 0
----------- ------------
Units at the end of the period....................... 836,944 209,010
=========== ============
- ------------------
* The DVA Plus -- Standard, Annual Ratchet and 7% Solution units were offered
for sale commencing October 2, 1995.
6. SUBSEQUENT EVENTS
On August 13, 1996, under the terms of a stock purchase agreement, Equitable of
Iowa Companies acquired all of the interest in BTV from Whitewood Properties
Corp., a subsidiary of Bankers Trust Company. DSI and Golden American are
wholly-owned subsidiaries of BTV.
In addition, at a special meeting held on August 8, 1996, the contractholders
approved the reorganization of the Account from a separate account of Golden
American registered as a management investment company to a newly created
division (the 'Division') of an existing separate account of Golden American
which is registered as a unit investment trust. On the date of the
reorganization, which is anticipated to be August 30, 1996, the Account will
transfer all of its assets to the Division. The Division will simultaneously
exchange all of these assets to the Managed Global Series (the 'Series') of The
GCG Trust, a newly created series of The GCG Trust. The investment objective,
policies, and restrictions of the Account prior to the reorganization will be
identical to the investment objective, policies, and restrictions of the Series.
The GCG Trust is also managed by DSI.
Also approved at the special meeting was a new Management Agreement with DSI
effective upon the reorganization which, among other things, provides for a
'unified' fee arrangement. Under the unified fee arrangement, DSI would assume
responsibility for providing or paying for all of the services necessary for the
ordinary operation of the Series, subject to the supervision of the Board of
Trustees of The GCG Trust. In return, DSI would receive a single fee at an
annual rate of 1.25% of the Series' average daily net assets. DSI's fee would
drop to 1.05% of the Series' assets in excess of $500 million. Under the new
agreement, DSI would not bear the expense of brokerage fees, taxes, interest on
borrowing, fees and expenses of the independent Trustees, extraordinary expenses
and contract-related charges including mortality and expense risk and asset-
based administrative charges.
20
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Golden American Life Insurance Company BULK RATE
1001 Jefferson Street U.S. POSTAGE
Wilmington, DE 19801 PAID
PERMIT NO. 1387
WILMINGTON, DE
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