<PAGE>
LOGO
NEW YORK LIFE INSURANCE COMPANY
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
(A DELAWARE CORPORATION)
- --------------------------------------------------------------------------------
51 Madison Avenue, New York, N.Y. 10010
- --------------------------------------------------------------------------------
LIFESTAGES SM 1995 SEMI-ANNUAL REPORT TABLE OF CONTENTS
<TABLE>
<S> <C>
President's Letter..................... 2
MacKay-Shields Financial Corporation
Adviser's Report...................... 4
New York Life Insurance Company
Adviser's Report...................... 6
Portfolio Managers' Comments........... 7
LifeStages SM Separate Account
(Non-Qualified and Tax-Qualified Poli-
cies)
Statement of Assets and Liabilities.... 18
Statement of Operations................ 20
Statement of Changes in Total Equity... 22
Notes to Financial Statements.......... 24
New York Life MFA Series Fund, Inc.
Chairman's Letter...................... 36
Capital Appreciation Portfolio......... 37
Cash Management Portfolio.............. 43
Government Portfolio................... 48
High Yield Corporate Bond Portfolio.... 52
International Equity Portfolio......... 57
Total Return Portfolio................. 73
Value Portfolio........................ 82
Bond Portfolio......................... 87
Growth Equity Portfolio................ 92
Indexed Equity Portfolio............... 98
Notes to Financial Statements.......... 115
</TABLE>
<PAGE>
- -------------------------------------------------------------------------------
To the Owners of LifeStages SM Policies:
I am pleased to present the unaudited Semi-Annual Report for LifeStages SM
and the MFA Series Fund, Inc. for the period ended June 30, 1995. I would like
to welcome all purchasers to this first report on this new product.
POSITIVE OUTLOOK
The first half of 1995 was a time for recovering from the turmoil created
last year when the Federal Reserve initiated six interest rate hikes. Never-
theless, by historical standards, the Federal funds rate is still quite low,
leaving room for the opportunity for continued economic growth. Last year's
increasing interest rate environment concerned those invested in the markets.
The returns on investments were less than expected and left many fearful that
they should have "played it safe" with less volatile investments.
This year, short-term and long-term interest rates have fallen in response
to a slowing economy and decreased inflationary pressures. The U.S. stock and
bond markets have moved up strongly, although the question remains whether
they are moving too far, too fast. Although it is possible that the Federal
funds rate will be decreased during the second half of the year, indicators
are still pointing to a "soft landing" by the end of this year or early 1996.
STAY COMMITTED TO YOUR GOAL
Informed individuals state that one of the keys to success in the markets is
patience. Some years will be more volatile than others and may lead you to
question whether a variable annuity is right for you. Last year was one of
those years. Owners of our other variable products who continued with their
investment strategies are now learning what can be accomplished through a com-
mitment to a long-term investment strategy and why these types of investments
are often an integral part of retirement planning.
LOOKING AHEAD IN 1995
The remaining half of the year looks to be one of optimism for continued
growth in the stock and bond markets. Congress seems to have renewed concern
over the deficit and our low savings rate and is trying to do something about
these problems. As part of their effort, work continues on balancing the bud-
get. A balanced budget may mean low interest rates, which can in turn, create
a favorable environment for investments in stocks and bonds.
COMMITMENT TO YOUR NEEDS
New York Life Insurance and Annuity Corporation (NYLIAC) is constantly
striving to offer products that can help you address the need to save for your
future while allowing you to maintain flexibility and control.
2
<PAGE>
- -------------------------------------------------------------------------------
As part of this effort, LifeStages SM was introduced with twelve investment
options with varying degrees of risk and opportunity for growth. LifeStages SM
also offers a number of features which are geared toward making it easier for
you to maintain control over your policy without constant monitoring. These
include a Dollar Cost Averaging* feature to systematically invest or an auto-
matic asset reallocation feature, which enables you to instruct NYLIAC to sys-
tematically reallocate your assets to maintain a predetermined proportion in
the Investment Divisions. LifeStages SM policyowners can also benefit from a
bonus interest rate on new premiums allocated to the Fixed Account and a Guar-
anteed Death Benefit with a step-up provision. Refer to the prospectus for
complete details.
Our goal is to enhance LifeStages SM as the opportunity arises so that we
can continue to help you meet the challenge of providing a strong foundation
for your future.
On the following pages you will find reports from each of the Portfolio Man-
agers of the MFA Series Fund, Inc. that are available in LifeStages SM.
LOGO
Lee M. Gammill, Jr. President
NEW YORK LIFE INSURANCE AND ANNUITY
CORPORATION
*Dollar Cost Averaging does not ensure a profit nor protect against a loss in
a declining market.
3
<PAGE>
- -------------------------------------------------------------------------------
MACKAY-SHIELDS FINANCIAL CORPORATION
ADVISER'S REPORT
The U.S. stock market posted its best first half performance since 1987 dur-
ing the six months ended June 30, 1995. Broad market averages enjoyed stellar
returns. The S&P 500* gained 20.21%, the Dow Jones Industrial Average gained
20.42%, and NASDAQ** gained 24.14% (all including dividends). Although the in-
dexes were hard to beat, U.S. stock mutual fund investors found few reasons to
complain. Stock funds enjoyed their best first quarter in two years, and their
best second quarter in two and one half years with stock funds as a group
posting first half average gains of 16.63%. In only six months, the average
stock fund investor reaped a year and a half of gains, based on the historical
returns on stocks of about 10% a year. This rebound vindicated those long-term
investors who stuck to their guns during a somewhat dismal 1994, when the av-
erage U.S. stock fund lost money. The bond market also staged an impressive
rally during the first half, with the average taxable bond fund gaining 9.11%.
This rebound was especially noteworthy in light of the fact that 1994 had been
the worst bond market in 20 years. With the dollar's slide arrested during the
second quarter, foreign stock funds generally bounced back in the second quar-
ter, after losing money during the first quarter.
One of the most intriguing aspects of the powerful U.S. stock and bond mar-
ket surges is that the mood of market participants was generally gloomy at the
beginning of the year. The markets had to contend with many concerns, such as
too weak an economy (good for interest rates, but bad for earnings in the
event of a recession), too strong an economy (more Fed tightening), overhang-
ing inventories, and/or some unforeseen surprising burst of inflation. In
fact, the economy weakened enough for rates to decline, but not enough to in-
duce a recession. Inflation remained subdued. Some companies did, in fact, ex-
perience an inventory correction, but improved inventory management and the
use of sophisticated technology helped to reduce inventory levels. Talk of a
Fed funds rate cut helped to spark the second quarter bond rally.
When bonds are booming, stocks generally follow. Falling interest rates pro-
pelled stocks to record levels. Earnings remained strong during the first half
of 1995. Market leadership can be summed up in one word: technology. Although
historically, technology stocks have tended to soar one year and plummet the
next, some believe that this run-up is different because of a productivity
revolution which is replacing people with technology. Structural changes are
occurring on a global scale and demand is expected to remain high for some
time to come. Although profit taking is bound to occur at some point, funda-
mentals appear to be keeping pace with multiple expansion.
With hindsight we believe we experienced a "growth recession" during the
first half of the year in sectors such as autos and housing. With the inven-
tory correction behind us, probably a steady economy ahead, and little evi-
dence of seemingly an alarming uptick in inflation, the stock market environ-
ment could remain relatively benign during the second half of the year. With
the Dow having
4
<PAGE>
- -------------------------------------------------------------------------------
gained 1,000 points in seven short months, the market is a little more expen-
sive than before; nevertheless, if earnings hold up, if inflation remains low,
and if interest rates do not back up sharply, the valuation level of the mar-
ket is not excessive by substantiate standards. Having said that, investors
should not expect the second half of the year to match the exceptionally
strong first half.
With respect to the fixed income markets, it appears that there may be a
soft landing, which suggests that the good news is already discounted in bond
prices. The risk to the bond market is an increase in economic growth which we
expect during the second half, sparked by a seasonal expansion of exports and
auto sales. With inventories now trimmed, housing and auto sales may possibly
accelerate. Moreover, since production levels were cut much more sharply than
in the past during the first half slowdown, any increase in demand should flow
through fairly quickly to increased production. Nevertheless, the recent Fed
easing took the market by storm, with considerable rallies in short-term and
long-term maturities. Many analysts point out that there has never been a sin-
gle Fed move in one direction not followed by more actions. Future moves will
depend upon economic activity, but for now, the bond markets are currently
discounting more ease. While the strong productivity gains harnessed during
this cycle may preclude the possibility of a major resurgence in inflation,
some risk of a cyclical rise cannot be ruled out later in the year.
Ravi Akhoury
Chairman and Chief Executive Officer
MacKay-Shields Financial Corporation
* "Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are reg-
istered trademarks of the Standard & Poor's Corporation. The New York Life
MFA Series Fund, Inc. is neither sponsored by nor affiliated with Standard
& Poor's Corporation. The S&P 500 is an unmanaged index considered gener-
ally representative of the U.S. stock market.
** "NASDAQ Composite Index" is an unmanaged index and is considered to be gen-
erally representative of the U.S. small capitalization stock market.
5
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK LIFE INSURANCE COMPANY
ADVISER'S REPORT
1995 has produced positive results for investors. The fixed income and stock
market generated double digit returns; the stock market in particular made and
continues to make record highs. Just as last year's market malaise resulted
from a move by the Federal Reserve to tighten the monetary environment, this
year's robust growth resulted from the Fed's neutrality in the face of an ap-
parent slowdown in economic growth. While the Fed did not act to lower rates
until after the end of the first half, the market anticipated the loosening
and rates fell throughout the quarter. This drop in rates, combined with con-
tinued corporate profit growth, provided significant support to the stock mar-
ket.
Economic growth continues to be led by capital investment rather than con-
sumer spending, allowing inflationary pressures to remain modest. The soft
landing of the economy appears real and investors are beginning to look beyond
it to accelerated growth in 1996. The risk to investors in this scenario is
that ultimately inflationary pressures will pick up, interest rates will in-
crease, and stock market valuations will be challenged. Our view is that the
near-term outlook remains favorable to investors as the economy should con-
tinue to provide a positive backdrop for equity valuations.
Concerns have been raised about stock market valuations with earnings and
profit margins in the fifth year of expansion. We see that the potential for
powerful profit growth with modest sales increases, as corporations continue
to leverage their revenue growth with very tight expense structures, is likely
for many industries, particularly late cycle industrials and capital goods
manufacturers. The technology sector should continue to enjoy high levels of
sales and earnings growth combined with expanding valuations. Other sectors,
such as financials, are in the midst of powerful consolidation trends and
looking forward, we believe can provide the opportunity for yielding impres-
sive returns for investors.
With respect to the bond market, we envision prices remaining within a
fairly narrow trading range over the near-term. While the Fed recently reduced
rates slightly, it is difficult to determine when the next change in rates
will occur. In any event, the market has priced the lower rates into the mar-
ket, dampening any expectation of large capital gains.
Clearly, with the stock market up over 20% for the first six months of the
year, and the bond market's impressive performance, investors should pause and
re-evaluate their strategies. We have done so, and remain positive. We believe
our approach can provide the opportunity for continued good results. We will,
though, continue to watch the fundamentals very carefully as the year pro-
gresses and alter our outlook and strategies as appropriate.
Jean Hoysradt
Senior Vice President in charge of
the Investment Department
New York Life Insurance Company
6
<PAGE>
- -------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO
After a disappointing 1994 for the average stock mutual fund investor, the
Capital Appreciation Portfolio rebounded sharply during the first six months
of 1995, with a return of 18.57%* versus a 17.57% return generated by the av-
erage Lipper** growth stock fund.
After the positive gains in the Portfolio's technology stocks posted during
much of 1994 (as difficult as it was), we began this year wondering how long
the good times would last. It's now obvious they lasted another six months--
Micron Technology was up 149% and Intel jumped 98%. Fortunately, we stuck with
our discipline of investing in stocks and sector groups that are exhibiting
relative earnings momentum, and it served us well through the first six months
of 1995. We remain overweighted in technology, though to a lesser degree than
some of our competition, because of our strict adherence to diversification
disciplines. These disciplines help us to manage risk.
Our decision to continue to hold stocks in the financial arena proved posi-
tive in an environment of declining interest rates and further industry con-
solidation. Winners included Charles Schwab Corp. (+88.71%), and Bank of New
York (+39%). Health care was a mixed bag. The HMOs were volatile as higher
utilization trends and pressure on premiums overshadowed strong enrollment
growth. We have reduced our exposure in this area until better profitability
trends emerge. Higher utilization translated into excellent performance by our
medical devices and drug stocks led by one of our newer holdings, Teva Pharma-
ceuticals (+55%), with Amgen and Schering-Plough recording 36% and 19% advanc-
es, respectively.
Going forward, we are optimistic that an environment of low inflation and
declining interest rates will provide a positive backdrop for growth stocks.
Our mission has not changed--to identify and invest in companies exhibiting
rapid and accelerating earnings growth, with appropriate levels of risk.
Edmund Spelman and Rudy Carryl
Portfolio Managers
MacKay-Shields Financial Corporation
*Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original cost.
**Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales charges.
The Lipper Variable Insurance Products Performance Analysis Service (L-
VIPPAS) ranks the portfolios that invest in the separate accounts of insur-
ance companies.
***"Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are reg-
istered trademarks of the Standard & Poor's Corporation. The New York Life
MFA Series Fund, Inc. is neither sponsored by nor affiliated with Standard &
Poor's Corporation. The S&P 500 is an unmanaged index considered generally
representative of the U.S. stock market.
7
<PAGE>
- -------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
The money markets were fairly stable during the first six months as the Fed-
eral Reserve remained on hold and short rates remained pegged to the Federal
Funds rate. By the end of the second quarter, longer maturities anticipated an
easing Federal Reserve and traded below three month yields. During the first
half of 1995, the Portfolio returned 2.82%* vs. 2.73% for the average Lipper**
money market fund.
Ravi Akhoury and Frank Salem
Portfolio Managers
MacKay-Shields Financial Corporation
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
** Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
8
<PAGE>
- -------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
The bond markets posted strong performance for the first six months of 1995
as compared to a dismal 1994. Rates rallied across the entire maturity spec-
trum providing the average government fund with a total return of 10.65%, as
tracked by Lipper Analytical Services.* The Government Portfolio kept pace
with the market during the period with a total return of 10.33%**.
During the first six months of 1995, the Portfolio's average maturity was
close to the market, enabling the portfolio to perform in line with the mar-
ket. Security selection was the theme within the treasury, agency and mortgage
pass-through markets. We selected older issued securities which provided op-
portunities against newly issued securities in the Treasury market, while our
identification of securities with lower than market sensitivity to prepayment
risk proved attractive in the mortgage market. Both decisions contributed pos-
itively to the Portfolio's performance.
Looking forward, we see the mortgage market as attractive and expect it to
outperform in the future. As a result, we have increased our exposure to sea-
soned, high coupon mortgages.
We continue to believe that yields across the entire maturity spectrum will
be volatile as the market dissects new economic data to shed light on the next
move by the Federal Reserve. During this period, the Portfolio's maturity
structure will remain neutral to slightly defensive, compared to the market.
Ravi Akhoury and Edward J.
Munshower, III
Portfolio Managers
MacKay-Shields Financial Corporation
* Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
** Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
9
<PAGE>
- -------------------------------------------------------------------------------
HIGH YIELD CORPORATE BOND PORTFOLIO
The High Yield Corporate Bond Portfolio is new to the New York Life MFA Se-
ries Fund family. Our goal is to seek significant yield while minimizing prin-
cipal risk. More specifically, we employ a rigorous credit process to ensure
the protection of interest and also to seek capital appreciation. During its
first two months (May 1--June 30), the High Yield Corporate Bond Portfolio had
a total return of 1.66%* versus 2.76% for the average Lipper** high yield
fund. This underperformance was due to not being fully invested in the month
of May, since the portfolio was just beginning to be established. In June the
Portfolio outperformed the average fund with a return of 0.97%* vs. 0.33%.
Performance was positively driven by broadcasting and energy, as our fundamen-
tal analysis identified strong debt-paying ability for these companies.
We continue to have a conservative bias going into the third quarter, be-
cause we believe much of the good news on inflation and interest rates have
occurred. Currently, our cash position is 36.8% and we intend to work it down
to approximately 18%.
Denis Laplaige and Steven Tananbaum
Portfolio Managers
MacKay-Shields Financial Corporation
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
** Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
10
<PAGE>
- -------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
The International Equity Portfolio underperformed during its first two
months, May and June, as reflected by a return of -4.97%*. Despite this per-
formance, the International Equity Portfolio seeks to provide the long-term
equity investor with a vehicle for diversifying his or her total portfolio ex-
posure into multiple markets around the world. Our goal is to manage the port-
folio with a process which emphasizes country selection, management of cur-
rency risk, diversification and high quality stocks.
Our underperformance during this partial quarter reflects in part our focus
on core markets, compared to the more risky emerging markets. The biggest core
international market, Japan, continued its bearish tone. It was down -9.7%
through the period of May and June while many markets registered gains. Also
detracting from our performance was the decline in the U.S. dollar to all-time
lows against the Japanese yen.
However, our European equity investments performed well during the quarter.
Our "top-down" style emphasizing country selection led us to focus on the un-
dervalued interest-sensitive markets. In each of these markets, our diversi-
fied baskets of stocks fully reflected these countries' interest-sensitivity
with securities, such as banks, insurers and utilities. This translated into
an overweighting in markets such as Austria (up 7.0% in local terms) and Spain
(up 5.7%).
Going into the third quarter, our strategy is to stick with our contrarian
positive outlook on Japanese equities. We believe that the market valuation
has become very compelling, in light of the incredibly low short-term (1%) and
long-term (below 3%) interest rates. In Europe, we have been raising our
weightings in interest-sensitive markets, since the U.S. bond market rally has
only recently caught on in Europe. We are maintaining a low exposure in Euro-
pean markets (such as Germany and Sweden) that emphasize manufacturers, since
their profit margins are being squeezed by the expensive level of European
currencies. In Southeast Asia, we have added a position in the Singapore mar-
ket. Singapore is a major supplier to the booming technology sector in the
U.S. and has real estate and banking sectors that should rebound on the heels
of a more positive interest rate environment.
We believe that international equity markets, having lagged the U.S. in the
first half of the year, can offer substantial opportunities in the second half
of the year. The major area of risk that we foresee in international invest-
ments today is currency risk. The Japanese yen and the major European curren-
cies tied to the German mark are especially overvalued. We continue to raise
the protection in the portfolios against a decline in the Japanese yen and the
major European currencies.
Shigemi Takagi and Michael M.
Perelstein
Portfolio Managers
MacKay-Shields Financial Corporation
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
11
<PAGE>
- -------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
The Total Return Portfolio's 15.85%* gain during the first half of 1995
outperformed the 13.30% return registered by the average balanced fund in the
Lipper** universe, for the six month period.
The equity component of the Portfolio (which continues to be managed as a
growth portfolio) benefitted from its overweighted position in technology and
financial stocks. We continued to be overweighted in technology issues, as
this sector exhibited high earnings growth. Stellar performers in the technol-
ogy sector included Intel (+98%), Micron Technology (+149%), Lam Research
(+71%) and Hewlett Packard (+49%). Our decision to continue to hold financial
stocks paid off. Financial standouts, Charles Schwab Corp. (+88%), Bear
Stearns (+45%) and Bank of New York (+39%), were aided by declining interest
rates and further industry consolidation. Health care results were mixed, with
HMOs under pressure, but our decision to continue to hold medical devices and
drug stocks outperformed the market. We have reduced our HMO exposure, given
what appears to be a period of decelerating earnings momentum.
The bond market's strong performance during the first six months contrasted
sharply with 1994. During the six month period, the fixed income portion of
the Portfolio's maturity was close to the market, allowing the Portfolio to
participate in the rally. Security selection added value within the treasury,
agency and mortgage pass-through markets. We selected older issued securities,
which provided opportunities against newly issued securities in the Treasury
market, while the seasoned mortgages which we emphasized experienced less pre-
payments historically. The Portfolio continues to remain underweighted in cor-
porate holdings, because we believe they are expensive compared to Treasury
and agency issues. The fixed income portion of the Portfolio has an average
weighted quality rating of AAA, the highest rating. As of June 30, the Portfo-
lio was invested approximately 53% in stocks, 41% in fixed income instruments
and cash equivalents.
As is the case for the Capital Appreciation Portfolio, an environment of low
inflation and interest rates should provide a positive backdrop for stocks
with rapidly growing earnings.
Ravi Akhoury, Rudy Carryl and Edmund
Spelman
Portfolio Managers
MacKay-Shields Financial Corporation
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
** Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
12
<PAGE>
- -------------------------------------------------------------------------------
VALUE PORTFOLIO
The Value Portfolio is new to the New York Life MFA Series Fund family. The
Portfolio focuses on low price to earnings stock and/or low price/cash flow
stocks. Stocks selected for inclusion in the Portfolio also have "value cata-
lysts" in place, which are designed to maximize the timeliness of purchases.
Our goal is to seek competitive returns while managing downside risk.
The Value Portfolio had a total return for the two month period since incep-
tion (May 1--June 30) of 4.22%* vs. 5.81% for the average growth and income
fund in the Lipper** universe and 6.41% for the S&P 500.***
The financial markets were very strong in May and June due in large part to
further signs that the economy was weakening, that inflation was under con-
trol, and that the Fed was contemplating lowering short-term rates over the
next few months. The total return of the S&P 500 in the two month period was
6.41% which is the majority of what the long-term expectation is for an entire
year of returns in the stock market.
Our decision to hold defensive stocks during the two month period contrib-
uted positively to returns. Defensive stocks included groups such as
defense/capital goods (Lockheed Martin), consumer non-durables (Philip Morris
and Merck) and financials (Travelers, National City and First Fidelity Bancorp
which was acquired by First Union). Additionally, there was a rebound in se-
lective basic industry stocks, as the market is beginning to see past the
near-term inventory correction toward an economic recovery, especially in
housing and auto-related (i.e., interest sensitive) sectors. These included
Rayonier and PPG, as well as less economically sensitive basics (FMC). Lastly,
the Portfolio benefitted from our decision to sustain our exposure to the ag-
ricultural part of the economy, as grain levels worldwide are at a twenty-year
low. Winners included fertilizer stocks such as Potash Corp., Vigoro, IMC
Global, and Agrium.
These strong sectors were not enough to overcome the Portfolio's
underperformance relative to its peer group. The weak performers (down in ab-
solute and relative terms) came from a number of sectors, but included energy
stocks, especially independents (Noble Affiliates, Union Texas, Parker & Pars-
ley and Santa Fe Resources), retailers (Fruit of the Loom and Limited), trans-
portation stocks (Illinois Central and Union Pacific) and consumer cyclicals
(American Greetings). Weak sectors were characterized by either weakening com-
modity prices (oil and natural gas), declining volumes (i.e. transportation)
or weak consumer spending (retailers).
13
<PAGE>
- -------------------------------------------------------------------------------
Going forward, our goal is to point to values in the consumer cyclical areas
(i.e., autos, housing and related), financials and to basic industry, where we
are already overweighted. In terms of new money investments, we are likely to
de-emphasize energy, defense and consumer non-durables, as these defensive
areas which have served the Portfolio well in an economic slowdown, could lag
in a perceived economic recovery.
Denis Laplaige and Thomas Kolefas
Portfolio Managers
MacKay-Shields Financial Corporation
*Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original cost.
**Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales charges.
The Lipper Variable Insurance Products Performance Analysis Service (L-
VIPPAS) ranks the portfolios that invest in the separate accounts of insur-
ance companies.
***"Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are reg-
istered trademarks of the Standard & Poor's Corporation. The New York Life
MFA Series Fund, Inc. is neither sponsored by nor affiliated with Standard &
Poor's Corporation. The S&P 500 is an unmanaged index considered generally
representative of the U.S. stock market.
14
<PAGE>
- -------------------------------------------------------------------------------
BOND PORTFOLIO
The Bond Portfolio registered a double digit return of +11.25%* in the first
half of 1995. This compares to a return of +11.66% for our benchmark index,
the Merrill Lynch Corporate and Government Master Index.**
1995 began with investors positioned for a continuation of 1994's bear mar-
ket sell off. As signs of economic weakness began to appear, the market
quickly reversed course and rallied dramatically. Investors began to antici-
pate Federal Reserve easing and this fueled the market's momentum. In the
first six months of the year the yield on the five and ten year US Treasury
securities decreased by 186 and 162 basis points respectively. We began the
year positioned for a negative bond market while still overweighted in corpo-
rate securities. This position caused us to underperform our benchmark early
in the year. We have since restructured our portfolio, where we continue to
overweight corporate securities and have lengthened the portfolio's duration.
These moves have contributed to our total return performance in the second
quarter.
Looking ahead, we expect moderate economic growth and reduced interest rate
volatility in the second half of the year. We expect short-term corporate
bonds to outperform Treasuries and will continue to overweight this sector. We
will adjust the portfolio over the second half of the year opportunistically,
seeking to outperform the market.
Albert R. Corapi, Jr.
Portfolio Manager
New York Life Insurance Company
* Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original
cost.
** The Merrill Lynch Corporate and Government Master Index is an unmanaged in-
dex consisting of issues of the U.S. Government and agencies as well as in-
vestment-grade corporate securities. Results assume the reinvestment of all
income and capital gains distributions.
15
<PAGE>
- -------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
The Growth Equity Portfolio generated strong performance for the six-month
period ended June 30, 1995. While impressive in absolute terms, the Portfolio
lagged the average growth stock fund as ranked by Lipper Analytical Services*
and the S&P 500**. Though the Portfolio benefitted in the first half of the
year from its stock selection in technology issues and exposure to later cycle
industrials and capital goods companies, the Portfolio's relative performance
was adversely affected by its underweighting of the technology and financial
sectors, which led the market during this period.
The equity market exceeded the expectations of most investors in the first
half of the year primarily because of the sharp drop in interest rates and ro-
bust corporate earnings. The fall in bond yields caused relative equity valua-
tions to increase because of the relationship between stock prices and inter-
est rates. The supply/demand environment for equities also improved due to
continued strong demand by equity mutual funds, tight supply caused by an in-
creased level of merger and acquisition activity, an increased number of share
repurchase programs and a light underwriting calendar.
Looking forward, we continue to see favorable fundamentals in the equity
market. Current valuation levels are not excessive by historical standards and
the continued benign interest rate and inflation environment should offer com-
panies the opportunity for strong earnings growth, though most likely at a
less torrid pace than we saw in 1994 and the first half of this year. Even as
corporate earnings growth moderates, the low interest rate environment should
cause equity valuations to expand throughout the market generally, and for es-
tablished growth companies in particular.
Our primary strategy of investing in mid-to-large capitalization growth
stocks, along with the deployment of the Portfolio's cash, should result in an
improvement of our relative performance as the year progresses.
James Agostisi
Portfolio Manager
New York Life Insurance Company
* Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales
charges. The Lipper Variable Insurance Products Performance Analysis Serv-
ice (L-VIPPAS) ranks the portfolios that invest in the separate accounts of
insurance companies.
** "Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are reg-
istered trademarks of the Standard & Poor's Corporation. The New York Life
MFA Series Fund, Inc. is neither sponsored by nor affiliated with Standard
& Poor's Corporation. The S&P 500 is an unmanaged index considered gener-
ally representative of the U.S. stock market.
16
<PAGE>
- -------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
At the midpoint of the year, the S&P 500 Index* has outperformed most broad
stock market indices (both at home and abroad). Falling interest rates and
strong earnings were the impetus that drove the market up to new highs. Last
year's best performer--technology stocks--led the way as favorable events in
that sector fueled investors already high expectations and produced double
digit returns.
As an index fund, the Indexed Equity Portfolio does not strategically allo-
cate assets among particular stocks or sectors, but seeks only to mirror the
structure and performance of the Standard & Poor's 500 stock index. This index
provides a broad representation of the U.S. stock market. As compared to other
indices, the constituent stocks of the S&P 500 have relatively large market
capitalization and a greater proportion of blue chip companies. As the stock
market rally has progressed throughout the last six months, these larger is-
sues have outperformed their small cap counterparts. One factor has been the
persistent weakness of the U.S. dollar. Large, multinational U.S. based corpo-
rations that rely heavily on exports for their success benefitted greatly from
the dollar's slide. As the dollar falls, income from foreign operations can be
translated into U.S. dollars at more favorable rates, and U.S. manufacturers
can be more competitive in their global sales efforts.
The S&P 500 Index--and the Indexed Equity Portfolio--have also outperformed
the vast majority of mutual fund managers. The S&P 500 Index outperformed 83%
of all funds investing in U.S. stocks for the six month period ending June 30,
1995. The Lipper** average U.S. stock fund returned 16.63% for this period,
while the Indexed Equity Portfolio gained 19.89%.***
James A. Mehling
Portfolio Manager
Monitor Capital Advisors, Inc.
*"Standard & Poor's 500 Composite Stock Price Index" and "S&P 500" are regis-
tered trademarks of the Standard & Poor's Corporation. The New York Life MFA
Series Fund, Inc. is neither sponsored by nor affiliated with Standard &
Poor's Corporation. The S&P 500 is an unmanaged index considered generally
representative of the U.S. stock market.
**Lipper Analytical Services, Inc. is an independent monitor of mutual fund
performance. Its rankings are based on total returns with capital gains and
dividends reinvested. Results do not reflect any deduction of sales charges.
The Lipper Variable Insurance Products Performance Analysis Service (L-
VIPPAS) ranks the portfolios that invest in the separate accounts of insur-
ance companies.
***Total returns shown indicate past performance and are not indicative of fu-
ture results. Investment return and principal value will fluctuate so that
shares, upon redemption, may be worth more or less than their original cost.
17
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
CAPITAL CASH HIGH YIELD
APPRECIATION MANAGEMENT GOVERNMENT CORPORATE BOND
-------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment at net asset value
(Identified Cost: $240,942;
$1,110,114; $42,136;
$122,770; $47,606; $212,025;
$75,549; $20,603; $36,509;
$69,430; $5,010,
respectively).............. $ 245,125 $1,110,113 $ 42,448 $ 123,323
LIABILITIES:
Liability for mortality and
expense risk charges....... 135 556 35 71
---------- ---------- ---------- ----------
Total equity............... $ 244,990 $1,109,557 $ 42,413 $ 123,252
========== ========== ========== ==========
TOTAL EQUITY REPRESENTED BY:
Equity of Policyowners:
Variable accumulation units
outstanding: 23,440;
1,102,863; 4,216; 12,232;
4,847; 20,723; 7,525;
2,053; 3,607; 6,886; 501,
respectively............... $ 244,990 $1,109,557 $ 42,413 $ 123,252
========== ========== ========== ==========
Variable accumulation
unit value................. $ 10.45 $ 1.01 $ 10.06 $ 10.08
========== ========== ========== ==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
18
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
<TABLE>
<CAPTION>
INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 47,298 $ 214,015 $ 76,642 $ 20,565 $ 37,001 $ 70,350 $ 5,125
41 73 56 9 22 48 6
---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 47,257 $ 213,942 $ 76,586 $ 20,556 $ 36,979 $ 70,302 $ 5,119
========== ========== ========== ========== ========== ========== ==========
$ 47,257 $ 213,942 $ 76,586 $ 20,556 $ 36,979 $ 70,302 $ 5,119
========== ========== ========== ========== ========== ========== ==========
$ 9.75 $ 10.32 $ 10.18 $ 10.01 $ 10.25 $ 10.21 $ 10.22
========== ========== ========== ========== ========== ========== ==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
19
<PAGE>
STATEMENT OF OPERATIONS
For the period May 1, 1995 (Commencement of Operations)
to June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
CAPITAL CASH HIGH YIELD
APPRECIATION MANAGEMENT GOVERNMENT CORPORATE BOND
---------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income............ $ -- $ 2,196 $ -- $ --
Mortality and expense risk
charges................... (133) (555) (35) (71)
--------- --------- --------- ---------
Net investment income
(loss)................... (133) 1,641 (35) (71)
--------- --------- --------- ---------
REALIZED AND UNREALIZED GAIN
(LOSS):
Proceeds from sale of
investments............... 25,663 820,627 25,384 25,345
Cost of investments sold... (25,328) (820,628) (25,286) (25,286)
--------- --------- --------- ---------
Net realized gain (loss)
on investments........... 335 (1) 98 59
Change in unrealized
appreciation/depreciation
on investments............ 4,183 (1) 312 553
--------- --------- --------- ---------
Net gain (loss) on
investments.............. 4,518 (2) 410 612
--------- --------- --------- ---------
Increase (decrease)
attributable to funds
of New York Life Insurance
and Annuity Corporation
retained by Separate
Account................... (2) (1) -- --
--------- --------- --------- ---------
Net increase (decrease) in
total equity resulting
from operations.......... $ 4,383 $ 1,638 $ 375 $ 541
========= ========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
20
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
<TABLE>
<CAPTION>
INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ -- $ -- $ --
(42) (73) (56) (10) (22) (48) (6)
--------- --------- --------- --------- --------- --------- ---------
(42) (73) (56) (10) (22) (48) (6)
--------- --------- --------- --------- --------- --------- ---------
25,118 25,560 25,449 -- -- -- --
(25,286) (25,286) (25,347) -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
(168) 274 102 -- -- -- --
(308) 1,990 1,093 (37) 492 920 115
--------- --------- --------- --------- --------- --------- ---------
(476) 2,264 1,195 (37) 492 920 115
--------- --------- --------- --------- --------- --------- ---------
1 -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
$ (517) $ 2,191 $ 1,139 $ (47) $ 470 $ 872 $ 109
========= ========= ========= ========= ========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
21
<PAGE>
STATEMENT OF CHANGES IN TOTAL EQUITY
For the period May 1, 1995 (Commencement of Operations)
to June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
CAPITAL CASH
APPRECIATION MANAGEMENT GOVERNMENT
------------------------------------
<S> <C> <C> <C>
INCREASE IN TOTAL EQUITY:
Operations:
Net investment income (loss).............. $ (133) $ 1,641 $ (35)
Net realized gain (loss) on investments... 335 (1) 98
Change in unrealized appreciation/
depreciation on investments.............. 4,183 (1) 312
Increase (decrease) attributable to funds
of New York Life Insurance and Annuity
Corporation retained by Separate
Account.................................. (2) (1) --
---------- ---------- ----------
Net increase (decrease) in total equity
resulting from operations............... 4,383 1,638 375
---------- ---------- ----------
Contributions and withdrawals:
Policyowners' premium payments............ 8,818 1,924,772 --
Transfers between Investment Divisions.... 231,789 (816,853) 42,038
---------- ---------- ----------
Total contributions and withdrawals
(net)................................... 240,607 1,107,919 42,038
---------- ---------- ----------
Increase in total equity................ 244,990 1,109,557 42,413
TOTAL EQUITY:
Beginning of period....................... -- -- --
---------- ---------- ----------
End of period............................. $ 244,990 $1,109,557 $ 42,413
========== ========== ==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
22
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
<TABLE>
<CAPTION>
HIGH YIELD INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
CORPORATE BOND EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (71) $ (42) $ (73) $ (56) $ (10) $ (22) $ (48) $ (6)
59 (168) 274 102 -- -- -- --
553 (308) 1,990 1,093 (37) 492 920 115
-- 1 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
541 (517) 2,191 1,139 (47) 470 872 109
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
11,686 -- -- -- -- -- -- --
111,025 47,774 211,751 75,447 20,603 36,509 69,430 5,010
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
122,711 47,774 211,751 75,447 20,603 36,509 69,430 5,010
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
123,252 47,257 213,942 76,586 20,556 36,979 70,302 5,119
-- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 123,252 $ 47,257 $ 213,942 $ 76,586 $ 20,556 $ 36,979 $ 70,302 $ 5,119
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
23
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
NOTE 1--Organization and Accounting Policies:
- -------------------------------------------------------------------------------
New York Life Insurance and Annuity Corporation LifeStages SM Annuity Separate
Account ("Separate Account") was established on November 30, 1994, under
Delaware law by New York Life Insurance and Annuity Corporation, a wholly
owned subsidiary of New York Life Insurance Company. This account was
established to receive and invest premium payments under Qualified and Non-
Qualified Flexible Premium Variable Retirement Annuity Policies issued by New
York Life Insurance and Annuity Corporation. The Separate Account is
registered under the Investment Company Act of 1940, as amended, as a unit
investment trust. The assets of the Separate Account are invested in the
shares of the New York Life MFA Series Fund, Inc. (the "MFA Fund"), a
diversified open-end management investment company, and in Acacia Capital
Corporation (the "Acacia Fund"). These assets are clearly identified and
distinguished from the other assets and liabilities of New York Life Insurance
and Annuity Corporation.
There are ten Investment Divisions within the Separate Account which invest
solely in the corresponding Portfolios of the MFA Fund: the Capital
Appreciation, Cash Management, Government, High Yield Corporate Bond,
International Equity, Total Return, Value, Bond, Growth Equity and Indexed
Equity Portfolios. There is one Investment Division within the Separate
Account which invests solely in the Acacia Fund's Responsibly Invested
Balanced Portfolio. Premium payments received, except those received for the
Fixed Account, are allocated to the Cash Management Investment Division until
15 days after the policy issue date. Thereafter, premium payments will be
allocated to the Investment Divisions of the Separate Account in accordance
with the Policyowner's instructions. In addition, the Policyowner has the
option to transfer amounts between the Investment Divisions of the Separate
Account and/or the Fixed Account of New York Life Insurance and Annuity
Corporation.
No federal income tax is payable on investment income or capital gains of the
Separate Account under current federal income tax law.
Security Valuation--The investments in the MFA Fund and Acacia Fund are
valued at the net asset value of shares of the fund portfolios, which are
valued at market.
Security Transactions--Realized gains and losses from security transactions
are reported on the identified cost basis. Security transactions are accounted
for as of the date the securities are purchased or sold (trade date).
Distributions Received--Dividend income and capital gain distributions are
recorded on the ex-dividend date and reinvested in the corresponding
portfolio.
24
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
(THIS PAGE INTENTIONALLY LEFT BLANK)
25
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
NOTE 2--Investments (in 000's):
- -------------------------------------------------------------------------------
At June 30, 1995, the investment in the MFA Fund and Acacia Fund by the
respective Investment Divisions of the Separate Account is as follows:
<TABLE>
<CAPTION>
CAPITAL CASH HIGH YIELD
APPRECIATION MANAGEMENT GOVERNMENT CORPORATE BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------------------
<S> <C> <C> <C> <C>
Number of Shares.............. 18 1,110 4 12
Identified Cost*.............. $241 $1,110 $42 $123
</TABLE>
* The cost stated also represents the aggregate cost for federal income tax
purposes.
Transactions in MFA Fund and Acacia Fund shares for the period May 1, 1995
(Commencement of Operations) through June 30, 1995 were as follows:
<TABLE>
<CAPTION>
CAPITAL CASH HIGH YIELD
APPRECIATION MANAGEMENT GOVERNMENT CORPORATE BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------------------
<S> <C> <C> <C> <C>
Purchases..................... $266 $1,929 $67 $148
Proceeds from Sales........... 26 821 25 25
</TABLE>
26
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
5 17 7 2 2 6 3
$48 $212 $76 $21 $37 $69 $ 5
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$73 $237 $101 $21 $37 $69 $ 5
25 26 25 -- -- -- --
</TABLE>
27
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
NOTE 3--Mortality and Expense Risk Charges:
- -------------------------------------------------------------------------------
The Separate Account is charged for administrative services provided and the
mortality and expense risks assumed by New York Life Insurance and Annuity
Corporation. These charges are made at an annual rate of 1.40% of the daily
net asset value of each Investment Division. The amounts of these charges
retained in the Investment Divisions represent funds of New York Life
Insurance and Annuity Corporation. Accordingly, New York Life Insurance and
Annuity Corporation participates in the results of each Investment Division
ratably with the Policyowners.
- -------------------------------------------------------------------------------
NOTE 4--Distribution of Net Income:
- -------------------------------------------------------------------------------
The Separate Account does not expect to declare dividends to Policyowners from
accumulated net investment income and realized gains. The income and gains are
distributed to Policyowners as part of withdrawals of amounts (in the form of
surrenders, death benefits, transfers, or annuity payments) in excess of the
net premium payments.
28
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
(THIS PAGE INTENTIONALLY LEFT BLANK)
29
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 5--Cost to Policyowners (in 000's):
- --------------------------------------------------------------------------------
At June 30, 1995, the cost to Policyowners for accumulation units outstanding,
with adjustments for net investment income, market appreciation/depreciation
and deduction for expenses is as follows:
<TABLE>
<CAPTION>
CAPITAL CASH HIGH YIELD
APPRECIATION MANAGEMENT GOVERNMENT CORPORATE BOND
-------------------------------------------------
<S> <C> <C> <C> <C>
Cost to Policyowners (net of
withdrawals)................ $ 241 $ 1,108 $ 42 $ 123
Accumulated net investment
income...................... -- 2 -- --
Unrealized appreciation/
depreciation on investments. 4 -- -- --
------- ------- ------- -------
Net amount applicable to
Policyowners and New York
Life Insurance and Annuity
Corporation................. $ 245 $ 1,110 $ 42 $ 123
======= ======= ======= =======
</TABLE>
30
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 48 $ 212 $ 76 $ 21 $ 37 $ 69 $ 5
-- -- -- -- -- -- --
(1) 2 1 -- -- 1 --
------- ------- ------- ------- ------- ------- -------
$ 47 $ 214 $ 77 $ 21 $ 37 $ 70 $ 5
======= ======= ======= ======= ======= ======= =======
</TABLE>
31
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 6--Unit Transactions (in 000's):
- --------------------------------------------------------------------------------
Transactions in accumulation units were as follows:
<TABLE>
<CAPTION>
CAPITAL CASH
APPRECIATION MANAGEMENT GOVERNMENT
------------ ---------- ----------
1995 1995 1995
----------------------------------
<S> <C> <C> <C>
Units issued on premium payments............ 1 1,916 --
Units issued (redeemed) on transfers between
Investment Divisions....................... 22 (813) 4
----- ----- -----
Net increase............................... 23 1,103 4
Units outstanding, beginning of period...... -- -- --
----- ----- -----
Units outstanding, end of period............ 23 1,103 4
===== ===== =====
</TABLE>
32
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
CORPORATE BOND EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
- -------------- ------------- ------ ----- ----- ------ ------- -----------
1995 1995 1995 1995 1995 1995 1995 1995
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 -- -- -- -- -- -- --
11 5 21 8 2 4 7 1
----- ----- ----- ----- ----- ----- ----- -----
12 5 21 8 2 4 7 1
-- -- -- -- -- -- -- --
----- ----- ----- ----- ----- ----- ----- -----
12 5 21 8 2 4 7 1
===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
33
<PAGE>
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 7--Selected Per Unit Data+:
- --------------------------------------------------------------------------------
The following table presents selected per accumulation unit income and capital
changes (for an accumulation unit outstanding throughout the period) with
respect to each Investment Division of the Separate Account:
<TABLE>
<CAPTION>
CAPITAL CASH
APPRECIATION MANAGEMENT GOVERNMENT
------------ ---------- ----------
1995 1995 1995
----------------------------------
<S> <C> <C> <C>
Unit value, beginning of period............. $10.00 $ 1.00 $10.00
Net investment loss......................... (0.01) -- (0.01)
Net realized and unrealized gains (losses)
on security transactions and
realized capital gain distributions
received (includes the effect of capital
share transactions)........................ 0.46 0.01 0.07
------ ------ ------
Unit value, end of period.................. $10.45 $ 1.01 $10.06
====== ====== ======
</TABLE>
+ Per unit data based on average weekly units outstanding during the period.
34
<PAGE>
NEW YORK LIFE
INSURANCE AND
ANNUITY CORPORATION
LIFESTAGES SM ANNUITY
SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD INTERNATIONAL TOTAL GROWTH INDEXED SOCIALLY
CORPORATE BOND EQUITY RETURN VALUE BOND EQUITY EQUITY RESPONSIBLE
- -------------- ------------- ------ ------ ------ ------ ------- -----------
1995 1995 1995 1995 1995 1995 1995 1995
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
(0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)
0.09 (0.24) 0.33 0.19 0.02 0.26 0.22 0.23
------ ------ ------ ------ ------ ------ ------ ------
$10.08 $ 9.75 $10.32 $10.18 $10.01 $10.25 $10.21 $10.22
====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
35
<PAGE>
[LOGO OF NEW YORK LIFE]
NEW YORK LIFE MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
51 Madison Avenue, New York, N.Y. 10010
Semi-Annual Report
June 30, 1995
- -------------------------------------------------------------------------------
To Policyowners:
The assets of NYLIAC Variable Universal Life Separate Account I, NYLIAC
Variable Annuity Separate Account I, NYLIAC Variable Annuity Separate Account
II, NYLIAC LifeStages SM Separate Account, New York Life Insurance and Annuity
Corporation MFA Separate Account I, New York Life Insurance and Annuity
Corporation MFA Separate Account II and New York Life Insurance and Annuity
Corporation VLI Separate Account are invested in shares of New York Life MFA
Series Fund, Inc. In addition, the assets of NYLIAC Variable Annuity Separate
Account I, NYLIAC Variable Annuity Separate Account II and NYLIAC
LifeStages SM Separate Account may be invested in Acacia Capital Corporation,
which is not affiliated with New York Life MFA Series Fund, Inc. or NYLIAC and
any of its subsidiaries.
At the Annual Meeting of the Board of Directors of the Fund held on February
21, 1995, executive officers of the Fund were elected. At a meeting of the
Board of Directors held on May 16, 1995, the Board declared a dividend distri-
bution which was paid on May 17, 1995, to NYLIAC Variable Universal Life Sepa-
rate Account I, NYLIAC Variable Annuity Separate Account I, NYLIAC Variable
Annuity Separate Account II, New York Life Insurance and Annuity Corporation
MFA Separate Account I, New York Life Insurance and Annuity Corporation MFA
Separate Account II and New York Life Insurance and Annuity Corporation VLI
Separate Account as the sole shareholders of record of New York Life MFA Se-
ries Fund, Inc.
The financial information included herein as of June 30, 1995, and for the
period then ended, is taken from the records of the Fund without examination
by independent accountants who do not express an opinion thereon.
LOGO
Chairman of the Board
and Chief Executive Officer
NEW YORK LIFE MFA SERIES FUND, INC.
36
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (83.8%)+
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Airlines (1.3%)
Atlantic
Southeast
Airlines, Inc... 40,500 $ 1,220,062
Southwest
Airlines Co. ... 36,500 871,438
------------
2,091,500
------------
Banks (3.4%)
Bank of New York
Co., Inc. ...... 45,500 1,837,062
Barnett Banks,
Inc. ........... 24,500 1,255,625
First Interstate
Bancorp......... 27,200 2,182,800
NationsBank
Corp. .......... 5,500 294,938
------------
5,570,425
------------
Brokerage (0.4%)
Bear Stearns
Companies Inc.
(The)........... 7,166 153,173
Schwab (Charles)
Corp. .......... 10,200 442,425
------------
595,598
------------
Buildings (1.0%)
Lennar Corp...... 26,850 503,438
Oakwood Homes
Corp. .......... 44,500 1,140,312
------------
1,643,750
------------
Computers &
Office Equipment
(6.6%)
Alco Standard
Corp. .......... 36,400 2,907,450
Danka Business
Systems Plc ADR
(b)............. 59,000 1,427,063
EMC Corp. (a).... 94,500 2,291,625
Hewlett-Packard
Co. ............ 31,000 2,309,500
Sun Microsystems,
Inc. (a)........ 38,400 1,862,400
------------
10,798,038
------------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Consumer Durables (2.4%)
Black & Decker
Corp. .......... 71,100 $ 2,195,213
Harley-Davidson,
Inc. ........... 72,000 1,755,000
------------
3,950,213
------------
Consumer Staples
(1.7%)
Loewen Group,
Inc. ........... 77,800 2,771,625
------------
Drugs (6.1%)
Amgen, Inc. (a).. 38,800 3,120,975
Elan Corp.
Plc ADR (a) (b). 42,100 1,715,575
Mylan
Laboratories
Inc. ........... 53,000 1,629,750
Schering-Plough
Corp. .......... 50,200 2,215,075
Teva
Pharmaceutical
Industries Ltd.
ADR (b) 36,800 1,380,000
------------
10,061,375
------------
Electronics
(3.2%)
Sensormatic
Electronics
Corp. .......... 57,000 2,023,500
Vishay
Intertechnology,
Inc. (a)........ 66,320 2,395,810
VLSI Technology,
Inc. (a) 30,000 903,750
------------
5,323,060
------------
Finance (6.3%)
Federal National
Mortgage
Association..... 23,200 2,189,500
Green Tree
Financial
Corp. .......... 71,000 3,150,625
Household
International,
Inc. ........... 46,000 2,277,000
Travelers Group
Inc. ........... 62,666 2,741,638
------------
10,358,763
------------
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
</TABLE>
37
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Financial
Services (3.2%)
First USA, Inc. . 52,200 $ 2,316,375
SunAmerica Inc. . 57,800 2,947,800
------------
5,264,175
------------
Health Care
(5.1%)
Columbia/HCA
Healthcare
Corp. .......... 60,812 2,630,119
HealthCare
COMPARE Corp.
(a)............. 46,600 1,398,000
Humana, Inc. (a). 66,000 1,163,250
Sierra Health
Services, Inc.
(a)............. 23,000 563,500
United Healthcare
Corp. .......... 63,700 2,635,587
------------
8,390,456
------------
Household Products (1.2%)
Lancaster Colony
Corp. .......... 31,500 1,126,125
Leggett & Platt,
Inc. ........... 17,100 752,400
Singer Company
N.V. (The)...... 4,800 124,200
------------
2,002,725
------------
Insurance (1.3%)
American
International
Group, Inc. .... 18,500 2,109,000
------------
Media (1.8%)
Viacom Inc. Class
A (a)........... 5,360 249,240
Viacom Inc. Class
B (a)........... 59,412 2,755,231
------------
3,004,471
------------
Medical Equipment (2.8%)
Cordis Corp. (a). 29,500 1,969,125
Medtronic, Inc. . 33,200 2,560,550
------------
4,529,675
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Medical Supplies
(0.7%)
American
HomePatient,
Inc. (a)........ 41,000 $ 1,219,750
------------
Publishing (1.0%)
News Corp. Ltd.
ADR (b)......... 75,300 1,703,663
------------
Recreation &
Entertainment
(0.6%)
Boomtown, Inc.
(a)............. 6,500 78,000
Callaway Golf
Co. ............ 55,000 825,000
------------
903,000
------------
Restaurants &
Lodging (2.7%)
Hospitality
Franchise
Systems, Inc.
(a)............. 81,000 2,804,625
Lone Star
Steakhouse &
Saloon, Inc.
(a)............. 45,000 1,364,062
ShoLodge, Inc.
(a)............. 18,000 267,750
------------
4,436,437
------------
Retail (9.1%)
Cato Corp. Class
A............... 36,400 295,750
Circuit City
Stores, Inc. ... 51,900 1,641,338
Dollar General
Corp. .......... 95,687 3,026,101
Home Depot, Inc.
(The)........... 44,000 1,787,500
Kohl's Corp. (a). 28,500 1,300,312
Kroger Co. (The)
(a)............. 64,000 1,720,000
Lowe's Companies,
Inc. ........... 68,900 2,058,388
Michaels Stores,
Inc. (a)........ 35,000 743,750
Office Depot,
Inc. (a)........ 83,975 2,361,797
------------
14,934,936
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
38
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Software (5.2%)
Computer
Associates
International,
Inc. ........... 51,500 $ 3,489,125
Microsoft Corp.
(a)............. 13,200 1,192,950
Oracle Corp. (a). 79,500 3,070,688
Sterling
Software, Inc.
(a) 22,000 847,000
------------
8,599,763
------------
Technology
(14.5%)
American Power
Conversion Corp.
(a)............. 77,400 1,770,525
General Motors
Corp. Class E... 37,000 1,609,500
Intel Corp. ..... 69,000 4,368,562
Lam Research
Corp. (a)....... 50,000 3,200,000
Linear Technology
Corp............ 24,000 1,584,000
Micron Technology
Inc. ........... 88,100 4,834,488
Motorola, Inc. .. 32,300 2,168,137
3Com Corp. (a)... 63,700 4,267,900
------------
23,803,112
------------
Telecommunication
Equipment (1.0%)
ADC
Telecommunications,
Inc. (a)........ 48,000 1,716,000
------------
Telecommunication
Services (1.2%)
WorldCom, Inc.
(a)............. 73,594 1,987,038
------------
Total Common
Stocks (Cost
$108,462,109)... 137,768,548
------------
</TABLE>
PREFERRED STOCK (0.3%)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------------
Publishing (0.3%)
News Corp. Ltd.
ADR-- Preference
Shares (b)...... 28,500 $ 570,000
------------
Total Preferred
Stock
(Cost $455,577). 570,000
------------
</TABLE>
SHORT-TERM
INVESTMENTS (15.3%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
----------
Commercial Paper (15.3%)
Associates Corp.
of
North America
5.95%, due
7/7/95......... $6,964,000 6,964,000
Beneficial Corp.
6.00%, due
7/12/95........ 3,713,000 3,713,000
Chevron Oil
Finance Co.
5.92%, due
7/10/95........ 5,785,000 5,785,000
Prudential
Funding Corp.
5.94%, due
7/3/95......... 1,722,000 1,722,000
5.98%, due
7/11/95........ 3,057,000 3,057,000
Smith Barney Inc.
5.96%, due
7/5/95......... 875,000 875,000
Texaco Inc.
5.95%, due
7/6/95......... 3,033,000 3,033,000
------------
Total Short-Term
Investments
(Cost $25,149,000) 25,149,000
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
39
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
Total
Investments
(Cost $134,066,686)(c) 99.4% $163,487,548(d)
Cash and Other
Assets,
Less
Liabilities......... 0.6 984,494
---------- ------------
Net Assets........... 100.0% $164,472,042
========== ============
</TABLE>
- --------
(a) Non-income producing securities.
(b) ADR--American Depository Receipt.
(c) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(d) At June 30, 1995 net unrealized appreciation was $29,420,862, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $32,022,484 and aggregate gross unrealized depre-
ciation for all investments on which there was an excess of cost over mar-
ket value of $2,601,622.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
40
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$134,066,686).................................................. $163,487,548
Cash............................................................ 727
Receivables:
Investment securities sold...................................... 4,283,967
Fund shares sold................................................ 375,967
Dividends and interest.......................................... 87,234
NYLIAC.......................................................... 45,635
Other assets.................................................... 795
------------
Total assets.................................................. 168,281,873
------------
LIABILITIES:
Payables:
Investment securities purchased................................. 3,713,000
Adviser......................................................... 46,858
Administrator................................................... 13,016
Recordkeeping................................................... 8,388
Custodian....................................................... 3,217
Directors....................................................... 958
Accrued expenses................................................ 24,394
------------
Total liabilities............................................. 3,809,831
------------
Net assets applicable to
outstanding shares............................................. $164,472,042
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 50 million shares
authorized..................................................... $ 121,097
Additional paid-in capital...................................... 139,766,215
Accumulated undistributed net investment income................. 523,911
Accumulated net realized loss
on investments................................................. (5,360,043)
Net unrealized appreciation
on investments................................................. 29,420,862
------------
Net assets applicable to
outstanding shares............................................. $164,472,042
============
Shares of capital stock outstanding............................. 12,109,655
============
Net asset value per share outstanding........................... $ 13.58
============
For the six months ended June 30, 1995
(Unaudited)
</TABLE>
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)..................................................... $ 411,236
Interest.......................................................... 600,437
-----------
Total income.................................................... 1,011,673
-----------
Expenses: (Note 2)
Advisory (Note 3)................................................. 240,459
Recordkeeping..................................................... 177,022
Administration (Note 3)........................................... 133,588
Auditing.......................................................... 14,108
Custodian......................................................... 10,180
Shareholder communication......................................... 7,870
Directors......................................................... 6,146
Amortization of organization expense.............................. 5,446
Legal............................................................. 4,459
Miscellaneous..................................................... 7,625
-----------
Total expenses
before reimbursement........................................... 606,903
Expense reimbursement from Administrator (Note 3)................. (119,306)
-----------
Net expenses.................................................... 487,597
-----------
Net investment income............................................. 524,076
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on investments.................................. (2,115,393)
Net change in unrealized appreciation
on investments................................................... 24,970,193
-----------
Net realized and unrealized gain
on investments................................................... 22,854,800
-----------
Net increase in net assets resulting
from operations.................................................. $23,378,876
===========
</TABLE>
- --------
(a) Dividends recorded net of foreign withholding taxes in the amount of
$1,426.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income......................................................... $ 524,076 $ 493,813
Net realized loss on investments.............................................. (2,115,393) (2,957,251)
Net change in unrealized appreciation on investments.......................... 24,970,193 710,503
------------ ------------
Net increase (decrease) in net assets resulting from operations............... 23,378,876 (1,752,935)
------------ ------------
Dividends to shareholders:
From net investment income.................................................... (1,000) (493,282)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.............................................. 35,588,232 73,263,025
Net asset value of shares issued to shareholders in reinvestment of dividends. 1,000 493,282
------------ ------------
35,589,232 73,756,307
Cost of shares redeemed....................................................... (8,494,194) (995,909)
------------ ------------
Increase in net assets derived from capital share transactions............... 27,095,038 72,760,398
------------ ------------
Net increase in net assets................................................... 50,472,914 70,514,181
NET ASSETS:
Beginning of period........................................................... 113,999,128 43,484,947
------------ ------------
End of period................................................................. $164,472,042 $113,999,128
============ ============
Accumulated undistributed net investment income............................... $ 523,911 $ 835
============ ============
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
JANUARY 29,
SIX MONTHS 1993 (A)
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1995* 1994 1993
---------- ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period. $ 11.45 $ 12.03 $ 10.00
-------- -------- -------
Net investment income.................. 0.04 0.05 0.02
Net realized and unrealized gain (loss)
on investments........................ 2.09 (0.58) 2.03
-------- -------- -------
Total from investment operations....... 2.13 (0.53) 2.05
-------- -------- -------
Less dividends:
From net investment income............ (0.00)(b) (0.05) (0.02)
-------- -------- -------
Net asset value at end of period....... $ 13.58 $ 11.45 $ 12.03
======== ======== =======
Total investment return (c)............ 18.57% (4.38%) 20.54%
Ratios (to average net
assets)/Supplemental Data:
Net investment income................. 0.78%+ 0.63% 0.46%+
Net expenses.......................... 0.73%+ 0.73% 0.73%+
Expenses (before reimbursement)....... 0.91%+ 0.91% 1.15%+
Portfolio turnover rate................ 24% 39% 28%
Net assets at end of period (in 000's). $164,472 $113,999 $43,485
</TABLE>
- --------
(a)Commencement of Operations.
(b)Less than one cent per share.
(c)Total return is not annualized.
+Annualized.
*Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
42
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (100.2%)+
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------------------
<S> <C> <C>
Bankers'
Acceptance (1.4%)
Sumitomo Bank
Ltd.,
New York
6.26%, due
7/6/95........... $ 900,000 $ 899,218
-----------
Bank Note (3.2%)
Bank Of America,
Illinois
5.89%, due
9/25/95 (c)...... 2,000,000 2,000,000
-----------
Certificate of De-
posit (1.6%)
Mitsubishi Bank,
New York
6.45%, due
5/24/96 (c)...... 1,000,000 1,000,257
-----------
Medium-Term Note
(1.6%)
General Electric
Capital Corp.
6.21%, due 6/6/96
(b)(c)........... 1,000,000 1,000,000
-----------
Commercial Paper
(92.4%)
Banca CRT
Financial Corp.
5.95%, due
9/1/95........... 500,000 494,876
6.04%, due
7/10/95......... 2,000,000 1,996,980
Beta Finance Inc.
5.85%, due
9/15/95 (a)...... 2,000,000 1,975,300
BIL North America
Inc.
5.87%, due
10/2/95.......... 3,300,000 3,249,958
Bradford & Bingley
Building Society
5.81%, due
9/26/95.......... 1,800,000 1,774,726
Brown-Forman Corp.
6.15%, due
8/15/95.......... 1,300,000 1,290,006
Commerzbank U.S.
Finance Inc.
5.86%, due
9/1/95........... 2,800,000 2,771,742
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------------------
<S> <C> <C>
Commercial Paper
(Continued)
Compagnie Bancaire
5.82%, due
9/7/95........... $2,500,000 $ 2,472,517
5.89%, due
8/31/95......... 500,000 495,010
Daewoo
International
(America) Corp.
6.00%, due
8/28/95.......... 2,000,000 1,980,667
6.15%, due
7/10/95......... 1,000,000 998,462
Delaware Group
Dividend & Income
Fund, Inc.
6.13%, due
8/15/95.......... 1,500,000 1,488,516
Dynamic Funding
Corp.
Series A
5.98%, due
7/25/95.......... 1,100,000 1,095,615
Galicia Funding
Corp.
6.15%, due
7/21/95 (a)...... 2,500,000 2,491,458
Hanson Finance
(U.K.) Plc
5.85%, due
9/5/95........... 1,500,000 1,483,912
Idaho Power Co.
5.97%, due
7/19/95.......... 1,500,000 1,495,523
KFW International
Finance Inc.
6.00%, due
7/13/95.......... 200,000 199,600
Kingdom of Sweden
6.15%, due
7/6/95........... 2,000,000 1,998,292
KN Energy Inc.
6.06%, due
7/26/95.......... 1,200,000 1,194,950
Kredietbank N.A.
Finance Corp.
5.97%, due
7/10/95.......... 900,000 898,657
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
CASH MANAGEMENT
PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------------------
<S> <C> <C>
Commercial Paper
(Continued)
McKenna Triangle
National Corp.
6.15%, due
8/21/95 (a)...... $1,200,000 $ 1,189,545
Michelin Tire
Corp.
5.98%, due
8/1/95........... 3,000,000 2,984,552
Monte Rosa Capital
Corp.
5.96%, due
7/21/95 (a)...... 1,500,000 1,495,033
New Center Asset
Trust Series
5.52%, due
11/15/95......... 400,000 391,597
Petroleo
Brasileiro
S.A.-Petrobras
6.04%, due
7/24/95.......... 3,000,000 2,988,423
Prudential Finance
(Jersey) Ltd.
5.96%, due
8/8/95........... 2,000,000 1,987,418
6.00%, due
7/31/95......... 1,000,000 995,000
Redwood
Receivables Corp.
6.00%, due
7/12/95 (a)...... 500,000 499,083
6.05%, due
7/26/95 (a)..... 1,500,000 1,493,698
Southwest Gas
Corp.
5.95%, due
8/3/95........... 1,000,000 994,546
Svenska
Handelsbanken
Inc.
5.93%, due
8/7/95........... 2,500,000 2,484,763
Toshiba
International
Finance (U.K.)
Plc
6.00%, due
7/3/95........... 1,200,000 1,199,600
6.22%, due
9/11/95......... 1,500,000 1,481,340
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
-----------------------
<S> <C> <C>
Commercial Paper
(Continued)
Toyota Motor
Credit Corp.
6.20%, due
10/6/95.......... $1,600,000 $ 1,573,271
U.S. Borax &
Chemical Corp.
6.15%, due
8/30/95 (a)...... 1,900,000 1,880,525
Vattenfall
Treasury Inc.
6.05%, due
7/14/95.......... 3,000,000 2,993,446
-----------
58,478,607
-----------
Total Short-Term
Investments
(Amortized Cost
$63,378,082) (d). 100.2% 63,378,082
Liabilities in
Excess of Cash
and Other Assets. (0.2) (131,211)
---------- -----------
Net Assets........ 100.0% $63,246,871
========== ===========
</TABLE>
- --------
(a) May be sold to institutional investors only.
(b) Floating rate. Rate shown is the rate in effect at June 30, 1995.
(c) Coupon interest bearing security.
(d) The cost stated also represents the aggregate cost for Federal income tax
purposes.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
44
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The table below sets forth the diversification of Cash Management Portfolio in-
vestments by industry.
SHORT-TERM INVESTMENTS
<TABLE>
<CAPTION>
AMORTIZED
COST PERCENT +
------------------
<S> <C> <C>
Auto Manufacturing. $ 1,573,271 2.5%
Banks #............ 38,054,663 60.2
Beverages.......... 1,290,006 2.0
Chemicals.......... 1,880,525 3.0
Consumer Financial
Services.......... 391,597 0.6
Energy............. 4,188,396 6.6
Finance............ 10,518,391 16.6
Foreign Government. 1,998,292 3.2
Insurance.......... 1,987,418 3.1
Utilities.......... 1,495,523 2.4
----------- -----
63,378,082 100.2
Liabilities in
Excess of Cash and
Other Assets...... (131,211) (0.2)
----------- -----
Net Assets......... $63,246,871 100.0%
=========== =====
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
# The Fund will invest more than 25% of the market value of its total assets
in the securities of banks and bank holding companies, including
certificates of deposit and bankers' acceptances.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
45
<PAGE>
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (amortized cost
$63,378,082).................................................... $63,378,082
Cash............................................................. 1,354
Receivables:
Investment securities sold....................................... 4,734,000
NYLIAC........................................................... 32,416
Fund shares sold................................................. 20,025
Interest......................................................... 12,430
Other assets..................................................... 360
-----------
Total assets................................................... 68,178,667
-----------
LIABILITIES:
Payables:
Investment securities purchased.................................. 3,249,420
Fund shares redeemed............................................. 1,324,865
Adviser.......................................................... 12,804
Recordkeeping.................................................... 5,348
Administrator.................................................... 5,121
Custodian........................................................ 1,426
Directors........................................................ 622
Accrued expenses................................................. 47,240
Dividend payable................................................. 284,950
-----------
Total liabilities.............................................. 4,931,796
-----------
Net assets applicable to
outstanding shares.............................................. $63,246,871
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 200 million shares
authorized...................................................... $ 632,472
Additional paid-in capital....................................... 62,614,724
Accumulated net realized loss
on investments.................................................. (325)
-----------
Net assets applicable to
outstanding shares.............................................. $63,246,871
===========
Shares of capital stock outstanding.............................. 63,247,154
===========
Net asset value per share outstanding............................ $ 1.00
===========
</TABLE>
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest........................................................... $1,969,697
----------
Expenses: (Note 2)
Recordkeeping (Note 3)............................................. 148,944
Advisory (Note 3).................................................. 79,187
Administration (Note 3)............................................ 63,349
Shareholder communication.......................................... 20,363
Auditing........................................................... 10,241
Amortization of organization expense............................... 5,446
Custodian.......................................................... 4,177
Legal.............................................................. 3,259
Directors.......................................................... 2,833
Miscellaneous...................................................... 3,558
----------
Total expenses
before reimbursement............................................ 341,357
Expense reimbursement from Administrator (Note 3).................. (144,974)
----------
Net expenses..................................................... 196,383
----------
Net investment income.............................................. 1,773,314
----------
REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments................................... 59
----------
Net increase in net assets resulting
from operations................................................... $1,773,373
==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
46
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
CASH MANAGEMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............................. $ 1,773,314 $ 2,310,893
Net realized gain (loss) on investments........... 59 (342)
------------ ------------
Net increase in net assets resulting from opera-
tions............................................ 1,773,373 2,310,551
------------ ------------
Dividends to shareholders:
From net investment income........................ (1,773,314) (2,310,893)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 50,635,801 99,252,119
Net asset value of shares issued to shareholders
in reinvestment of dividends..................... 1,790,336 2,011,001
Net asset value of shares issued in connection
with acquisition of Money Market Portfolio....... -- 37,601,126
------------ ------------
52,426,137 138,864,246
Cost of shares redeemed........................... (60,295,506) (94,480,925)
------------ ------------
Increase (decrease) in net assets derived from
capital share transactions...................... (7,869,369) 44,383,321
------------ ------------
Net increase (decrease) in net assets............ (7,869,310) 44,382,979
NET ASSETS:
Beginning of period............................... 71,116,181 26,733,202
------------ ------------
End of period..................................... $ 63,246,871 $ 71,116,181
============ ============
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
JANUARY 29,
SIX MONTHS 1993 (A)
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1995* 1994 1993
---------- ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period.. $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Net investment income................... 0.03 0.04 0.02
------- ------- -------
Less dividends:
From net investment income............. (0.03) (0.04) (0.02)
------- ------- -------
Net asset value at end of period........ $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total investment return (b)............. 2.82% 3.82% 2.40%
Ratios (to average net
assets)/Supplemental Data:
Net investment income.................. 5.60%+ 3.97% 2.65%+
Net expenses........................... 0.62%+ 0.62% 0.62%+
Expenses (before reimbursement)........ 1.08%+ 0.89% 1.10%+
Net assets at end of period (in 000's).. $63,247 $71,116 $26,733
</TABLE>
- --------
(a) Commencement of Operations.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
47
<PAGE>
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM U.S. GOVERNMENT & FEDERAL AGENCIES (86.7%)+
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Federal Home Loan
Mortgage
Corporation
(Collateralized
Mortgage
Obligations)
(4.2%)
Series 1716-PH
6.50%, due
12/15/08........ $ 950,000 $ 932,482
Series 1062-H
6.50%, due
4/15/21......... 725,000 691,469
Series 1681-L
7.00%, due
3/15/24......... 800,000 755,000
-----------
2,378,951
-----------
Federal Home Loan
Mortgage
Corporation
(Mortgage Backed
Securities)
(6.2%)
6.00%, due
8/1/24.......... 1,557,803 1,463,369
6.50%, due
2/1/24.......... 572,786 551,576
7.00%, due
5/1/24.......... 1,544,890 1,519,060
-----------
3,534,005
-----------
Federal National
Mortgage
Association
(5.6%)
4.875%, due
10/15/98........ 1,000,000 959,720
5.30%, due
12/10/98........ 500,000 484,765
5.35%, due
8/12/98......... 1,775,000 1,728,513
-----------
3,172,998
- --------------------------------------------------
-----------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Federal National
Mortgage Association
(Collateralized
Mortgage
Obligations)
(1.9%)
Series 1993-76 B
6.00%, due
6/25/08......... $ 522,941 $ 480,944
Series 1993-89 D
7.00%, due
6/25/23......... 625,000 586,331
-----------
1,067,275
-----------
Federal National
Mortgage
Association
(Medium- Term
Notes) (3.3%)
5.18%, due
2/1/99.......... 950,000 916,683
5.39%, due
8/5/98.......... 1,000,000 975,070
-----------
1,891,753
-----------
Federal National
Mortgage Association
(Mortgage Backed
Securities)
(7.8%)
6.50%,
due 3/21/09 TBA
(b).............. 550,000 541,233
8.50%, due
7/1/99.......... 200,000 205,750
9.00%, due
7/1/07.......... 341,705 357,403
10.00%, due
2/1/05-5/1/22 1,953,791 2,107,579
11.50%, due
2/1/20.......... 1,099,930 1,240,512
-----------
4,452,477
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
48
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LONG-TERM U.S. GOVERNMENT & FEDERAL AGENCIES (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Government
National Mortgage
Association
(Mortgage Backed
Securities)
(8.2%)
7.00%,
due 7/19/10 TBA
(b).............. $ 425,000 $ 426,993
9.00%,
due 12/31/17 TBA
(b).............. 825,000 873,989
9.00%,
due 11/15/17-
12/15/17......... 1,221,325 1,293,847
9.50%, due
3/15/23......... 827,498 885,423
10.00%, due
12/15/16........ 775,000 848,625
11.00%, due
6/15/20......... 275,000 306,625
-----------
4,635,502
-----------
United States
Treasury Bonds
(20.7%)
7.50%, due
11/15/24........ 7,650,000 8,464,037
11.25%, due
2/15/15......... 1,025,000 1,537,818
11.625%, due
11/15/04........ 1,300,000 1,787,097
-----------
11,788,952
-----------
United States
Treasury Notes
(28.8%)
6.50%, due
9/30/96......... 425,000 428,387
7.75%, due
12/31/99........ 2,225,000 2,375,543
7.875%, due
11/15/99........ 3,625,000 3,882,701
8.125%, due
2/15/98......... 2,950,000 3,108,090
8.50%, due
5/15/97......... 360,000 376,538
8.75%, due
10/15/97........ 5,825,000 6,178,112
-----------
16,349,371
-----------
Total Long-Term
U.S. Government
& Federal
Agencies
(Cost
$48,441,489)..... 49,271,284
-----------
</TABLE>
SHORT-TERM U.S. GOVERNMENT
& FEDERAL AGENCY (17.0%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
Federal Home
Loan
Bank (14.7%)
13.50%,
due 11/15/95
(a)............ $8,100,000 $ 8,319,591
-----------
United States
Treasury Note
(2.3%)
10.50%, due
8/15/95....... 1,300,000 1,306,903
-----------
Total Short-Term
U.S. Government
& Federal
Agency
(Cost
$9,699,970).... 9,626,494
-----------
Total
Investments
(Cost
$58,141,459)
(c) 103.7% 58,897,778 (d)
Liabilities in
Excess of Cash
and Other
Assets (3.7) (2,080,203)
---------- -----------
Net Assets 100.0% $56,817,575
========== ===========
</TABLE>
- --------
(a) Partially segregated as collateral for TBA.
(b) TBA: Securities purchased on a forward commitment basis with an
approximate principal amount and no definite maturity date. The actual
principal amount and the maturity date will be determined upon settlement.
(c) The cost for Federal income tax purposes is $58,188,285.
(d) At June 30, 1995 net unrealized appreciation was $709,493, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $848,347 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $138,854.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
49
<PAGE>
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2)
(identified cost $58,141,459)................................... $58,897,778
Cash............................................................. 643
Receivables:
Investment securities sold....................................... 5,659,437
Interest......................................................... 866,432
NYLIAC........................................................... 30,814
Fund shares sold................................................. 18,276
Other assets..................................................... 317
-----------
Total assets................................................... 65,473,697
-----------
LIABILITIES:
Payables:
Investment securities purchased.................................. 8,590,581
Recordkeeping.................................................... 20,013
Adviser.......................................................... 13,954
Administrator.................................................... 4,651
Custodian........................................................ 1,506
Directors........................................................ 538
Accrued expenses................................................. 24,879
-----------
Total liabilities.............................................. 8,656,122
-----------
Net assets applicable to
outstanding shares.............................................. $56,817,575
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 50 million shares
authorized...................................................... $ 55,901
Additional paid-in capital....................................... 57,666,922
Accumulated undistributed net investment income.................. 2,231,801
Accumulated net realized loss
on investments.................................................. (3,893,368)
Net unrealized appreciation
on investments.................................................. 756,319
-----------
Net assets applicable to
outstanding shares.............................................. $56,817,575
===========
Shares of capital stock outstanding.............................. 5,590,056
===========
Net asset value per share outstanding............................ $ 10.16
===========
</TABLE>
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest........................................................... $2,437,139
----------
Expenses: (Note 2)
Advisory (Note 3).................................................. 84,161
Recordkeeping...................................................... 65,175
Administration (Note 3)............................................ 56,108
Auditing........................................................... 9,370
Shareholder communication.......................................... 6,717
Custodian.......................................................... 6,715
Amortization of organization expense............................... 5,446
Legal.............................................................. 2,738
Directors.......................................................... 2,577
Miscellaneous...................................................... 3,468
----------
Total expenses
before reimbursement............................................ 242,475
Expense reimbursement from Administrator (Note 3).................. (54,515)
----------
Net expenses..................................................... 187,960
----------
Net investment income.............................................. 2,249,179
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments................................... 1,181,515
Net change in unrealized depreciation
on investments.................................................... 2,115,232
----------
Net realized and unrealized gain
on investments.................................................... 3,296,747
----------
Net increase in net assets resulting
from operations................................................... $5,545,926
==========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
50
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited) and the year ended December
31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.............................. $ 2,249,179 $ 4,719,554
Net realized gain (loss) on investments............ 1,181,515 (4,781,332)
Net change in unrealized depreciation on
investments....................................... 2,115,232 (938,174)
------------ -----------
Net increase (decrease) in net assets resulting
from operations................................... 5,545,926 (999,952)
------------ -----------
Dividends to shareholders:
From net investment income......................... -- (4,619,677)
------------ -----------
Capital share transactions:
Net proceeds from sale of shares................... 4,639,357 23,924,993
Net asset value of shares issued to shareholders in
reinvestment of dividends ........................ -- 4,619,677
------------ -----------
4,639,357 28,544,670
Cost of shares redeemed............................ (15,008,582) (8,049,708)
------------ -----------
Increase (decrease) in net assets derived from
capital share transactions....................... (10,369,225) 20,494,962
------------ -----------
Net increase (decrease) in net assets............. (4,823,299) 14,875,333
NET ASSETS:
Beginning of period................................ 61,640,874 46,765,541
------------ -----------
End of period...................................... $ 56,817,575 $61,640,874
============ ===========
Accumulated undistributed net investment
income/(excess distribution)...................... $ 2,231,801 $ (17,378)
============ ===========
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
JANUARY 29,
SIX MONTHS 1993 (A)
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1995* 1994 1993
---------- ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period.... $ 9.21 $ 10.15 $ 10.00
------- ------- -------
Net investment income..................... 0.40 0.75 0.82
Net realized and unrealized gain (loss) on
investments.............................. 0.55 (0.94) (0.25)
------- ------- -------
Total from investment operations.......... 0.95 (0.19) 0.57
------- ------- -------
Less dividends:
From net investment income............... -- (0.75) (0.42)
------- ------- -------
Net asset value at end of period.......... $ 10.16 $ 9.21 $ 10.15
======= ======= =======
Total investment return (b)............... 10.33% (1.84%) 5.63%
Ratios (to average net
assets)/Supplemental Data:
Net investment income.................... 8.02%+ 8.16% 8.46%+
Net expenses............................. 0.67%+ 0.67% 0.67%+
Expenses (before reimbursement).......... 0.86%+ 0.87% 1.02%+
Portfolio turnover rate................... 378% 483% 501%
Net assets at end of period (in 000's).... $56,818 $61,641 $46,766
</TABLE>
- --------
(a) Commencement of Operations.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
51
<PAGE>
- --------------------------------------------------------------------------------
HIGH YIELD CORPORATE BOND PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (60.1%)+
CORPORATE BONDS (45.8%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Aerospace (2.9%)
Sequa Corp.
9.625%, due
10/15/99......... $ 400,000 $ 404,000
-----------
Building Materials (1.4%)
Waxman Industries,
Inc. (zero
coupon), due
6/1/04 12.75%,
beginning 6/1/99 500,000 200,000
-----------
Buildings (5.9%)
NVR, Inc.
11.00%, due
4/15/03.......... 500,000 455,000
Orchard Supply
Hardware Corp.
9.375%, due
2/15/02.......... 400,000 352,000
-----------
807,000
-----------
Child Care Services (3.0%)
La Petite Holdings
Corp. 9.625%, due
8/1/01........... 500,000 412,500
-----------
Conglomerates (2.0%)
IHF Holdings, Inc.
(zero coupon),
due 11/15/04
15.00%, beginning
11/15/99 500,000 275,000
-----------
Containers (3.5%)
Envirodyne
Industries, Inc.
12.00%, due
6/15/00 (c)...... 500,000 487,500
-----------
Domestic Oil & Gas (0.9%)
Trans Texas Gas
Corp. 11.50%, due
6/15/02.......... 125,000 127,500
-----------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Food, Beverages &
Tobacco (9.6%)
All American
Bottling Corp.
13.00%, due
8/15/01.......... $ 500,000 $ 450,000
Flagstar Corp.
11.25%, due
11/1/04.......... 635,000 495,300
Liggett Group,
Inc. Series B
11.50%, due
2/1/99........... 500,000 372,500
-----------
1,317,800
-----------
Industrial (4.4%)
Interlake Corp.
12.00%, due
11/15/01......... 250,000 255,625
Newflo Corp.
13.25%, due
11/15/02......... 350,000 350,875
-----------
606,500
-----------
Media (2.1%)
Commodore Media,
Inc. 7.50%, due
5/1/03 (c)....... 150,000 124,125
General Media,
Inc. 10.625%, due
12/31/00......... 200,000 160,000
-----------
284,125
-----------
Restaurants &
Lodging (1.2%)
Family Restaurant,
Inc. 9.75%, due
2/1/02........... 250,000 162,500
-----------
Retail (1.9%)
Waban, Inc.
11.00%, due 5/15/04 250,000 255,000
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
52
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
CORPORATE BONDS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Telecommunication
Services (3.4%)
Centennial
Cellular Corp.
8.875%, due
11/1/01.......... $ 500,000 $ 470,000
-----------
Textile & Apparel (3.6%)
Hosiery Corp. of
America, Inc.
13.75%, due
8/1/02........... 500,000 500,000
-----------
Total Corporate
Bonds (Cost
$6,272,565)...... 6,309,425
-----------
CONVERTIBLE BONDS (8.0%)
Cellular Telephone (4.6%)
United States
Cellular Corp.
(zero coupon),
due 6/15/15...... 2,000,000 627,500
-----------
Financial (3.4%)
Hollinger, Inc.
(zero coupon),
due 10/5/13...... 1,500,000 461,250
-----------
Total Convertible
Bonds
(Cost
$1,117,102)...... 1,088,750
-----------
YANKEE BONDS (6.3%)
Cable (3.0%)
Australis Media
Ltd.
(zero coupon), due 5/15/03
14.00%, beginning 5/15/00 (d) 800 418,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------------------
<S> <C> <C>
Industrial (3.3%)
PT Inti Indorayon
Utama 9.125%, due
10/15/00......... $ 500,000 $ 458,750
-----------
Total Yankee Bonds
(Cost $868,161).. 876,750
-----------
Total Long-Term
Bonds (Cost
$8,257,828)...... 8,274,925
-----------
COMMON STOCKS (1.7%)
<CAPTION>
SHARES
<S> <C> <C>
----------
Telecommunication
Services (1.7%)
Rogers
Communications
Inc. Class B (a). 20,000 233,185
-----------
Textile & Apparel
(0.0%) (b)
Hosiery Corp. of
America, Inc.
(a).............. 500 750
-----------
Total Common
Stocks (Cost
$213,004)........ 233,935
-----------
WARRANTS (1.4%)
Domestic Oil & Gas (1.3%)
Transamerican
Refining Corp.
(a).............. 50,000 181,250
-----------
Food, Beverages &
Tobacco (0.1%)
Browne Bottling
Corp. (a)........ 237 12,324
-----------
Media (0.0%) (b)
General Media,
Inc. (a)......... 200 2,000
-----------
Total Warrants
(Cost $176,824).. 195,574
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
53
<PAGE>
- -------------------------------------------------------------------------------
HIGH YIELD CORPORATE BOND PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (36.4%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
United States
Treasury Note
(36.4%)
10.50%, due
8/15/95........ $4,975,000 $ 5,001,417
-----------
Total Short-Term
Investment
(Cost
$5,026,332).... 5,001,417
-----------
Total
Investments
(Cost
$13,673,988)
(e)............ 99.6% 13,705,851(f)
Cash and Other
Assets, Less
Liabilities.... 0.4 48,203
---------- -----------
Net Assets...... 100.0% $13,754,054
========== ===========
</TABLE>
- --------
(a) Non-income producing securities.
(b) Less than one tenth of a percent.
(c) May be sold to institutional investors only.
(d) 800 Units--each unit reflects $1,000 of principal amount of Senior Subor-
dinated Discount Notes, plus 1 warrant to acquire 57.721001 Ordinary Share
Trust Certificates.
(e) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(f) At June 30, 1995 net unrealized appreciation was $31,863, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $116,505 and aggregate gross unrealized de-
preciation for all investments on which there was an excess of cost over
market value of $84,642.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
54
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
HIGH YIELD CORPORATE BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$13,673,988).................................................... $13,705,851
Cash............................................................. 808
Receivables:
Dividends and interest........................................... 385,399
Fund shares sold................................................. 147,386
NYLIAC........................................................... 22,229
Unamortized organization expense
(Note 2)........................................................ 71,044
Other assets..................................................... 60
-----------
Total assets................................................... 14,332,777
-----------
LIABILITIES:
Payables:
Investment securities purchased.................................. 435,698
Organization..................................................... 73,500
Fund shares redeemed............................................. 47,122
Recordkeeping.................................................... 8,178
Adviser.......................................................... 3,085
Custodian........................................................ 1,862
Administrator.................................................... 1,028
Directors........................................................ 153
Accrued expenses................................................. 8,097
-----------
Total liabilities.............................................. 578,723
-----------
Net assets applicable to
outstanding shares.............................................. $13,754,054
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized...................................................... $ 13,530
Additional paid-in capital....................................... 13,548,400
Accumulated undistributed net investment income.................. 196,469
Accumulated net realized loss
on investments.................................................. (36,208)
Net unrealized appreciation
on investments.................................................. 31,863
-----------
Net assets applicable to
outstanding shares.............................................. $13,754,054
===========
Shares of capital stock outstanding.............................. 1,352,997
===========
Net asset value per share outstanding............................ $ 10.17
===========
For the period May 1, 1995 (Commencement of Operations)
through June 30, 1995
</TABLE>
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest............................................................. $209,339
--------
Expenses: (Note 2)
Recordkeeping........................................................ 14,908
Advisory (Note 3).................................................... 5,763
Auditing............................................................. 5,710
Administration (Note 3).............................................. 3,842
Amortization of organization expense................................. 2,456
Custodian............................................................ 1,862
Shareholder communication............................................ 1,508
Directors............................................................ 153
Legal................................................................ 86
Miscellaneous........................................................ 732
--------
Total expenses
before reimbursement.............................................. 37,020
Expense reimbursement from
Administrator (Note 3).............................................. (24,150)
--------
Net expenses....................................................... 12,870
--------
Net investment income................................................ 196,469
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments..................................... (36,208)
Net unrealized appreciation
on investments...................................................... 31,863
--------
Net realized and unrealized loss
on investments...................................................... (4,345)
--------
Net increase in net assets resulting
from operations..................................................... $192,124
========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
55
<PAGE>
- --------------------------------------------------------------------------------
HIGH YIELD CORPORATE BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the period May 1, 1995 (Commencement of Operations)
through June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995
-----------
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income............................................ $ 196,469
Net realized loss on investments................................. (36,208)
Net unrealized appreciation on investments....................... 31,863
-----------
Net increase in net assets resulting from operations............. 192,124
-----------
Capital share transactions:
Net proceeds from sale of shares................................. 3,649,136
Cost of shares redeemed.......................................... (87,206)
-----------
Increase in net assets derived from capital share transactions.. 3,561,930
-----------
Net increase in net assets...................................... 3,754,054
NET ASSETS:
Beginning of period.............................................. 10,000,000
-----------
End of period.................................................... $13,754,054
===========
Accumulated undistributed net investment income.................. $ 196,469
===========
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
MAY 1,
1995 (A)
THROUGH
JUNE 30,
1995*
--------
<S> <C>
Net asset value at beginning of period............................. $ 10.00
-------
Net investment income.............................................. 0.17
Net realized and unrealized loss on investments.................... (0.00)(b)
-------
Total from investment operations................................... 0.17
-------
Net asset value at end of period................................... $ 10.17
=======
Total investment return (c)........................................ 1.66%
Ratios (to average net assets)/Supplemental Data:
Net investment income............................................. 10.23%+
Net expenses...................................................... 0.67%+
Expenses (before reimbursement)................................... 1.93%+
Portfolio turnover rate............................................ 2%
Net assets at end of period (in 000's)............................. $13,754
</TABLE>
- --------
(a)Commencement of Operations.
(b)Less than one cent per share.
(c)Total return is not annualized.
+Annualized.
*Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
56
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (84.5%)+
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Australia (2.4%)
Amcor, Ltd. (forest
products & paper). 2,300 $ 16,923
Boral, Ltd.
(building
materials
& components)..... 3,000 7,485
Brambles
Industries, Ltd.
(business &
public services).. 900 8,510
Broken Hill
Proprietary
Co., Ltd.
(energy sources).. 4,400 54,019
Coles Myer, Ltd.
(merchandising)... 3,500 10,941
CRA, Ltd.
(metals--
nonferrous)....... 1,700 23,064
CSR, Ltd. (multi-
industry)......... 3,200 9,980
Foster's Brewing
Group, Ltd.
(beverages
& tobacco)........ 9,200 8,152
M.I.M. Holdings,
Ltd. (metals--
nonferrous)....... 4,000 4,933
National Australian
Bank, Ltd.
(banking)......... 3,900 30,741
News Corp., Ltd.
(broadcasting &
publishing)....... 3,900 21,728
Pacific Dunlop,
Ltd.
(multi-industry).. 3,600 7,553
Santos, Ltd.
(energy sources).. 2,400 5,750
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Australia (Continued)
Western Mining
Corp. Holdings,
Ltd.
(metals--
nonferrous)...... 3,200 $ 17,534
Westpac Banking
Corp.,
Ltd. (banking)... 3,900 14,071
----------
241,384
----------
Austria (4.4%)
Austrian Airlines
Oesterreichische
Luftverkehrs AG
(transportation--
airlines) (a).... 100 16,931
Bank Austria AG
(banking)........ 1,200 99,859
Creditanstalt-
Bankverein Stamm
(banking)........ 850 50,124
EA-Generali AG
(insurance)...... 200 58,970
Oesterreichische
Brau-Beteiligungs
AG (beverages &
tobacco)......... 350 18,410
OMV AG (energy
sources)......... 650 74,991
Verbundgesellschaft-
Oesterreichische
Elektrizitatswirtschafts
AG Class A
(utilities--
electrical &
gas)............. 800 58,682
Wienerberger
Baustoffindustrie
AG (building
materials
& components).... 150 57,634
----------
435,601
----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
57
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY
PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Belgium (3.0%)
Bekaert, SA
(industrial
components)....... 20 $ 15,813
Cimenteries CBR
Cementbedrijven
(building
materials &
components)....... 30 12,281
Delhaize-Le Lion,
SA
(merchandising)... 280 12,594
Electrabel, SA
(utilities--
electrical & gas). 280 59,134
Fortis AG
(insurance)....... 260 27,501
Generale de Banque,
SA (banking)...... 100 32,118
Groupe Bruxelles
Lambert, SA
(multi-industry).. 180 24,099
NV Union Miniere,
SA (metals--
nonferrous)....... 170 11,111
Petrofina, SA
(energy sources).. 140 42,259
Reunies Electrobel
& Tractebel, SA
(multi-industry).. 80 29,026
Solvay, SA Class A
(chemicals)....... 50 27,673
----------
293,609
----------
Denmark (2.9%)
Carlsberg AS Class
A (beverages &
tobacco).......... 300 13,942
Carlsberg AS Class
B (beverages &
tobacco).......... 200 9,331
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Denmark (Continued)
Dampskibsselskabet
AF 1912 AS Class B
(transportation--
shipping)......... 2 $ 38,141
Dampskibsselskabet
Svendborg AS Class
B
(transportation--
shipping)......... 1 27,402
Danisco AS (food &
household
products)......... 600 25,662
Den Danske Bank
(banking)......... 450 28,245
FLS Industries AS
Class B (machinery
&
engineering)...... 100 9,930
Novo Nordisk AS
Class B (health &
personal care).... 300 31,994
Sophus Berendsen AS
Class B (multi-
industry)......... 250 23,560
Tele Danmark AS
Class B
(telecommunications). 1,000 55,638
Unidanmark AS Class
A (banking)....... 450 22,079
----------
285,924
----------
France (8.1%)
Alcatel Alsthom
(electrical &
electronics)...... 460 41,450
AXA Groupe
(insurance)....... 580 31,348
Carrefour
Supermarche
(merchandising)... 90 46,137
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
58
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
France (Continued)
Compagnie de Saint
Gobain (misc.--
materials
& commodities).... 260 $ 31,431
Compagnie de Suez
(banking)......... 650 36,191
Compagnie
Financiere de
Paribas, SA Class
A (banking)....... 392 23,581
Compagnie Francaise
de Petroleum
Total, SA
Class B
(energy sources).. 690 41,564
Compagnie Generale
des Eaux (business
&
public services).. 420 46,787
Elf Aquitaine
(energy sources).. 800 59,164
Eridania Beghin-
Say, SA (food &
household
products)......... 110 16,974
Groupe Danone (food
& household
products)......... 290 48,817
Havas (business &
public services).. 260 20,596
LaFarge Coppee
(building materials
& components)..... 320 24,900
L'Air Liquide
(chemicals)....... 300 47,963
L'Oreal (health &
personal care).... 230 57,743
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
France (Continued)
LVMH-Moet Hennessy
Louis Vuitton
(beverages &
tobacco).......... 300 $ 54,028
Lyonnaise des Eaux,
SA (multi-
industry)......... 190 17,983
Michelin (CGDE)
Class B (tire &
rubber)........... 320 14,186
Pernod-Ricard
(beverages
& tobacco)........ 230 15,135
Pinault-Printemps,
SA (building
materials
& components)..... 70 15,018
PSA Peugeot
Citroen, SA
(automobiles) (a). 150 20,825
Rhone-Poulenc Class
A (chemicals)..... 960 21,646
Schneider, SA
(machinery &
engineering)...... 200 15,831
Societe Generale
(banking)......... 350 40,939
Thomson CSF, SA
(aerospace &
military
technology)....... 500 11,212
----------
801,449
----------
Italy (4.0%)
Assicurazioni
Generali
SPA (insurance)... 3,000 70,479
Banca Commerciale
Italiana SPA
(banking)......... 8,000 18,086
Benetton Group SPA
(textiles &
apparel).......... 1,000 9,901
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
59
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY
PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Italy (Continued)
Credito Italiano
SPA (banking).... 10,000 $ 11,591
Edison SPA
(energy sources). 3,000 13,381
Fiat SPA
(automobiles).... 15,000 52,882
Fiat SPA di Risp
(automobiles).... 4,000 8,615
Istituto Bancario
San Paolo di
Torina SPA
(banking)........ 3,000 16,249
Italgas SPA
(utilities--
electrical &
gas)............. 3,000 7,790
Mediobanca SPA
(financial
services)........ 4,000 29,047
Montedison SPA
(multi-industry). 25,000 17,887
Olivetti Group
(data processing
& reproduction).. 12,000 11,717
Parmalat
Finanziaria SPA
(food & household
products)........ 9,000 7,996
Pirelli SPA
(industrial
components)...... 8,000 10,631
Riunione Adriatica
di Sicurta SPA
(insurance)...... 1,000 10,586
Sirti SPA
(construction
& housing)....... 2,000 14,786
Telecom Italia di
Risp
(telecommunications). 6,000 12,684
Telecom Italia SPA
(telecommunications). 28,000 75,874
----------
400,182
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (40.8%)
Ajinomoto Co.,
Inc. (food &
household
products)........ 3,000 $ 30,779
Asahi Bank, Ltd.
(banking)........ 7,000 74,620
Asahi Chemical
Industry Co.,
Ltd. (chemicals). 5,000 32,805
Asahi Glass Co.,
Ltd.
(misc.--materials
& components).... 4,000 44,101
Bank of Tokyo
(banking)........ 4,000 64,078
Bridgestone Corp.
(industrial
components)...... 3,000 44,171
Canon, Inc.
(recreation &
other consumer
goods)........... 2,000 32,510
Chiba Bank, Ltd.
(banking)........ 2,000 18,140
Daiei, Inc.
(merchandising).. 2,000 24,265
Dai-Ichi Kangyo
Bank,
Ltd. (banking)... 7,000 126,153
Dai Nippon
Printing Co.,
Ltd. (business &
public services). 3,000 47,705
Fanuc Co., Ltd.
(electronic
components
& instruments)... 1,000 43,111
Fuji Bank, Ltd.
(banking)........ 7,000 140,995
Fuji Photo Film
Co., Ltd.
(recreation &
other consumer
goods)........... 1,000 23,676
Fujitsu, Ltd. (data processing
& reproduction).. 7,000 69,673
Furukawa Electric Co., Ltd.
(industrial components). 4,000 18,846
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
60
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (Continued)
Hankyu Corp.
(transportation--
road & rail) (a).. 3,000 $ 17,987
Hitachi, Ltd.
(electrical & electronics). 10,000 99,533
Honda Motor Co.,
Ltd.
(automobiles)..... 2,000 30,625
Industrial Bank of
Japan, Ltd.
(banking)......... 6,000 156,190
Itochu Corp.
(wholesale &
international
trade)............ 5,000 29,153
Ito-Yokado Co.,
Ltd.
(merchandising)... 1,000 52,652
Japan Air Lines
Co., Ltd.
(transportation--
airlines) (a)..... 4,000 26,526
Japan Energy Corp.
(energy sources).. 5,000 16,196
Joyo Bank, Ltd.
(banking)......... 2,000 16,915
Kajima Corp.
(construction &
housing).......... 2,000 19,836
Kansai Electric
Power Co., Inc.
(utilities--
electrical & gas). 2,000 53,712
Kao Corp. (food &
household
products)......... 3,000 36,044
Kawasaki Steel
Corp. (metals--
steel) (a)........ 6,000 19,647
Kinki Nippon
Railway Co., Ltd.
(transportation--
road & rail)...... 7,000 61,345
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (Continued)
Kirin Brewery Co.,
Ltd. (beverages &
tobacco)......... 2,000 $ 21,202
Komatsu, Ltd.
(machinery
& engineering)... 3,000 22,863
Kubota Corp.
(machinery
& engineering)... 5,000 31,803
Marubeni Corp.
(wholesale &
international
trade)........... 5,000 25,384
Matsushita
Electric
Industrial Co.,
Ltd. (appliances
&
household
durables)........ 5,000 77,741
Mitsubishi
Chemical
Corp.
(chemicals)...... 10,000 42,758
Mitsubishi Corp.
(multi-industry). 6,000 68,200
Mitsubishi
Electric Corp.
(electrical & electronics). 11,000 77,223
Mitsubishi Estate
Co., Ltd.
(construction &
housing)......... 3,000 33,747
Mitsubishi Heavy
Industries, Ltd.
(machinery &
engineering) 15,000 101,771
Mitsubishi Trust &
Banking Corp.
(financial
services)........ 3,000 42,404
Mitsui Engineering
& Shipbuilding
Co., Ltd.
(machinery &
engineering) (a). 7,000 15,171
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
61
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY
PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (Continued)
Mitsui Fudosan Co.,
Ltd. (construction
& housing)........ 2,000 $ 22,875
Mitsui Trust &
Banking Co., Ltd.
(financial services). 3,000 27,563
Mitsukoshi, Ltd.
(merchandising)... 3,000 21,414
NEC Corp.
(electrical
& electronics).... 4,000 43,771
New Oji Paper Co.,
Ltd. (forest
products & paper). 2,000 19,200
Nippon Express Co.,
Ltd.
(transportation--
road & rail)...... 3,000 27,563
Nippon Oil Co.,
Ltd.
(energy sources).. 13,000 81,617
Nippon Paper
Industries Co.
(forest products
& paper).......... 3,000 19,435
Nippon Steel Corp.
(metals--steel)... 11,000 35,761
Nippon Yusen
Kabushiki Kaish
(transportation--
shipping)......... 5,000 27,975
Nippondenso Co.,
Ltd. (industrial
components)....... 1,000 18,140
Nissan Motor Co.,
Ltd.
(automobiles)..... 5,000 31,921
NKK Corp.
(metals--steel)
(a)............... 10,000 23,440
Nomura Securities
Co., Ltd.
(financial
services)......... 4,000 69,732
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (Continued)
Obayashi Corp.
(construction &
housing) 5,000 $ 38,399
Osaka Gas Co., Ltd.
(utilities--
electrical & gas). 6,000 22,121
Sakura Bank, Ltd.
(banking)......... 9,000 93,820
Sankyo Co., Ltd.
(health & personal
care)............. 1,000 23,205
Sanyo Electric Co.,
Ltd. (appliances &
household
durables)......... 6,000 29,471
Sekisui Chemical
Co. (building
materials
& components)..... 2,000 23,558
Sekisui House, Ltd.
(construction &
housing).......... 2,000 24,736
Seven-Eleven of
Japan Co., Ltd.
(merchandising)... 1,000 71,498
Sharp Corp.
(appliances &
household
durables)......... 5,000 65,962
Shimizu Corp.
(construction
& housing) 2,000 19,318
Sony Corp.
(appliances &
household
durables)......... 1,000 47,941
Sumitomo Bank, Ltd.
(banking)......... 7,000 121,206
Sumitomo Chemical
Co., Ltd.
(chemicals)....... 6,000 23,464
Sumitomo Corp.
(wholesale &
international
trade)............ 3,000 27,280
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
62
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (Continued)
Sumitomo Electric
Industries, Ltd.
(industrial components). 2,000 $ 23,794
Sumitomo Marine &
Fire Insurance
Co., Ltd.
(insurance)....... 2,000 15,854
Sumitomo Metal
Industries, Ltd.
(metals--steel)... 8,000 20,825
Sumitomo Metal
Mining
Co., Ltd.
(metals--
nonferrous)....... 2,000 14,747
Taisei Corp.
(construction
& housing)........ 7,000 41,309
Taisho
Pharmaceutical
Co., Ltd. (health
&
personal care).... 1,000 19,317
Takeda Chemical
Industries, Ltd.
(health &
personal care).... 7,000 92,347
Teijin, Ltd.
(chemicals)....... 15,000 71,734
Tobu Railway Co.,
Ltd.
(transportation--
road
& rail)........... 3,000 18,693
Tohoku Electric
Power Co., Inc.
(utilities--
electrical
& gas)............ 1,000 27,681
Tokai Bank, Ltd.
(banking)......... 4,000 44,289
Tokio Marine & Fire
Insurance Co.,
Ltd. (insurance).. 3,000 34,347
Tokyo Dome Corp.
(leisure &
tourism).......... 1,000 15,313
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Japan (Continued)
Tokyo Electric
Power Co., Inc.
(utilities--
electrical & gas). 3,000 $ 91,876
Tokyo Gas Co., Ltd.
(utilities--
electrical & gas). 15,000 59,013
Tokyu Corp.
(transportation--
road & rail)...... 3,000 19,223
Toppan Printing
Co., Ltd.
(business &
public services).. 4,000 52,299
Tostem Corp.
(building
materials
& components)..... 1,000 30,743
Toto, Ltd.
(building
materials
& components)..... 1,000 14,253
Toyota Motor Corp.
(automobiles)..... 6,000 118,732
Yamaichi Securities
Co., Ltd.
(financial
services)......... 5,000 26,738
Yamanouchi
Pharmaceutical
Co., Ltd.
(health & personal care). 1,000 22,498
Yamazaki Baking
Co.,
Ltd. (food &
household
products)......... 1,000 20,495
Yasuda Trust &
Banking Co., Ltd.
(financial services). 3,000 19,612
----------
4,050,374
----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
63
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY
PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Singapore (Continued)
Development Bank of
Singapore, Ltd.
Foreign Registered
(banking)......... 5,000 $ 56,887
Fraser & Neave,
Ltd. (beverages &
tobacco).......... 2,000 23,041
Keppel Corp., Ltd.
(machinery &
engineering)......... 5,000 40,787
Oversea-Chinese
Banking Corp.,
Ltd. Foreign
Registered
(banking)......... 6,000 66,547
Singapore Airlines,
Ltd. Foreign
Registered
(transportation--
airlines)......... 8,000 73,845
Singapore Press
Holdings, Ltd.
Foreign Registered
(broadcasting &
publishing)....... 2,400 35,892
Straits Steamship
Land, Ltd. (multi-
industry)......... 5,000 17,317
United Overseas
Bank, Ltd. Foreign
Registered
(banking)......... 5,000 47,227
----------
429,592
----------
Spain (3.8%)
Acerinox, SA
(metals--steel)... 100 12,280
Autopistas
Concesionaria
Espanola, SA
(business & public
services)......... 1,290 12,517
Banco Bilbao
Vizcaya, SA
(banking)......... 1,220 35,211
</TABLE>
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Norway (2.5%)
Bergesen d.y. AS
Class A
(transportation--
shipping)......... 700 $ 15,896
Bergesen d.y. AS
Class B
(transportation--
shipping)......... 500 11,355
Dyno Industrier AS
(chemicals)....... 400 10,089
Hafslund Nycomed AS
Class A (health &
personal care).... 800 18,816
Hafslund Nycomed AS
Class B (health &
personal care).... 600 13,869
Kvaerner AS Class B
(machinery
& engineering).... 400 17,518
Norsk Hydro AS
(energy sources).. 2,900 121,598
Norske
Skogindustrier AS
(forest products
& paper).......... 600 21,022
Orkla Borregaard AS
Class A (multi-
industry)......... 500 22,384
----------
252,547
----------
Singapore (4.3%)
City Developments,
Ltd. (real
estate)........... 6,000 36,708
DBS Land, Ltd.
(real estate)..... 10,000 31,341
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
64
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Spain (Continued)
Banco Central
Hispanoamericano,
SA (banking)...... 680 $ 14,404
Banco Santander, SA
(banking)......... 800 31,546
Corporacion
Bancaria de
Espana, SA
(banking)......... 740 27,346
Corporacion Mapfre
CIA Internacional
de Reaseguros, SA
(insurance)....... 220 10,810
Empresa Nacional de
Electridad, SA
(utilities--
electrical & gas). 1,250 61,729
Fomento de Construcciones
y Contratas, SA
(construction & housing) 90 7,655
Gas Natural SDG, SA
(utilities--
electrical & gas). 180 21,494
Iberdrola, SA
(utilities--
electrical & gas). 4,680 35,246
Repsol, SA
(energy sources).. 1,510 47,509
Telefonica de
Espana
(telecommunications). 4,440 57,198
----------
374,945
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
United Kingdom (8.3%)
Abbey National Plc
(banking)......... 2,420 $ 18,018
Barclays Plc
(banking)......... 3,050 32,777
Bass British Plc
(beverages &
tobacco).......... 1,680 16,076
BAT Industries Plc
(beverages &
tobacco).......... 3,970 30,379
BOC Group Plc
(chemicals)....... 1,170 14,947
Boots Co. Plc
(merchandising)... 1,670 13,523
British Airways Plc
(transportation--
airlines)......... 1,460 9,570
British Gas Plc
(energy sources).. 6,890 31,733
British Petroleum
Co. Plc (energy
sources).......... 6,170 44,220
British
Telecommunications
Plc
(telecommunications) 6,990 43,592
BTR Plc (multi-
industry)......... 6,500 33,039
Cable & Wireless
Plc
(telecommunications). 3,990 27,295
Commercial Union
Plc (insurance)... 1,710 15,915
Forte Plc
(leisure &
tourism).......... 1,640 5,936
General Electric
Co. Plc
(electrical
& electronics).... 4,010 19,585
GKN Plc (machinery
& engineering).... 640 6,526
Glaxo Wellcome Plc
(health &
personal care).... 4,290 52,655
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
65
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
United Kingdom (Continued)
Grand Metropolitan
Plc (multi-
industry)......... 3,840 $ 23,550
Great Universal
Stores Plc
(merchandising)... 890 8,326
Guinness Plc
(beverages &
tobacco).......... 2,990 22,500
Hanson Trust Plc
(multi-industry).. 6,080 21,280
HSBC Holdings Plc
(GBP par)
(financial
services)......... 1,200 15,492
Imperial Chemical
Industries Plc
(chemicals)....... 830 10,181
Kingfisher Plc
(merchandising)... 1,090 7,370
Lloyds Bank Plc
(banking)......... 2,630 26,109
Marks & Spencer Plc
(merchandising)... 3,980 25,612
MEPC Plc (real
estate)........... 1,050 6,398
National Power Plc
(utilities--
electrical & gas). 1,700 12,049
Peninsular &
Oriental Steam
Navigation Co.
Deferred Stock
(transportation--
shipping)......... 1,230 11,330
Prudential Corp.
Plc (insurance)... 4,040 21,531
Rank Organisation
Plc (leisure &
tourism).......... 1,920 12,126
Redland Plc
(building
materials
& components)..... 1,550 10,159
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
United Kingdom (Continued)
Reed International
Plc (broadcasting
& publishing)..... 1,720 $ 24,162
Reuters Holdings
Plc (broadcasting
& publishing)..... 1,850 15,422
RMC Group Plc
(building
materials
& components)..... 700 11,760
RTZ Corp. Plc
(metals--
nonferrous)....... 1,540 20,090
Sainsbury Plc
(merchandising)... 2,840 19,970
Scottish Power Plc
(utilities--
electrical & gas). 3,560 18,350
Thorn Emi Plc
(appliances &
household
durables)......... 990 20,554
Unilever Plc (food
& household
products)......... 1,570 31,783
Vodafone Group Plc
(multi-industry).. 3,900 14,487
----------
826,377
----------
United States (0.0%) (b)
U.S. Industries,
Inc.
(multi-industry).. 60 828
----------
Total Common Stocks
(Cost $8,984,372). 8,392,812
----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
66
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREFERRED STOCK (0.2%)
<TABLE>
<CAPTION>
SHARES VALUE
---------------------
<S> <C> <C>
Austria (0.2%)
Creditanstalt-
Bankverein Vorzug
(banking)......... 450 $ 25,935
----------
Total Preferred
Stock
(Cost $26,291).... 25,935
----------
SHORT-TERM
INVESTMENTS (8.6%)
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
----------
Commercial Paper (8.6%)
Commerzbank U.S.
Finance Inc.
6.15%, due 7/3/95. $ 450,000 449,846
Grainger (W.W.)
Inc.
6.20%, due 7/3/95. 400,000 399,863
----------
Total Short-Term
Investments
(Cost $849,709)... 849,709
----------
</TABLE>
FORWARD CONTRACTS (0.3%) (f)
<TABLE>
<CAPTION>
CURRENCY
AMOUNT
SOLD VALUE
----------------------------
<S> <C> <C>
Australian
Dollar
due 8/23/95.... A$ 350,000 $ 6,640 (e)
Austrian
Schilling
due 8/15/95.... AS 1,432,500 1,234 (e)
Belgian Franc
due 7/5/95..... BF 8,535,000 558 (e)
due 10/5/95.... 8,535,000 (186)(e)
Danish Krone
due 8/9/95..... DK 1,548,000 (636)(e)
Deutsche Mark
due 7/5/95..... DM 4,779 (7,305)(e)
due 7/5/95..... 525,000 (14,217)(e)
due 9/6/95..... 257,735 4,960 (e)
due 10/5/95.... 21,396 1,522 (e)
due 10/18/95... 725,517 (19,268)(e)
due 1/5/96..... 525,000 (3,550)(e)
French Franc
due 8/2/95..... FF 2,455,000 (9,753)(e)
Japanese Yen
due 7/5/95..... (Yen) 280,160,000 81,793 (e)
due 7/5/95..... 328,950 (3,877)(e)
due 10/5/95.... 280,160,000 20,396 (e)
Pound Sterling
due 7/5/95..... (Pounds) 200,000 (1,191)(e)
Spanish Peseta
due 7/20/95.... ESP 550,000 (182)(e)
----------
56,938
----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
67
<PAGE>
- -------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF
INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
FORWARD CONTRACTS (Continued)
<TABLE>
CURRENCY
AMOUNT
BOUGHT VALUE
----------------------------
<S> <C> <C>
Belgian Franc
due 7/5/95..... BF 8,535,000 $ 289 (e)
Deutsche Mark
due 7/5/95..... DM 525,000 3,233 (e)
due 7/20/95.... 8,227 1,594 (e)
due 8/2/95..... 682,418 (3,162)(e)
due 8/9/95..... 391,403 (2,979)(e)
due 8/15/95.... 204,548 (937)(e)
due 11/3/95.... 96,850 (1,313)(e)
Italian Lira
due 9/6/95..... IL 317,760,000 903 (e)
Japanese Yen
due 7/5/95..... (Yen)280,160,000 (23,364)(e)
Pound Sterling
due 7/5/95..... (Pounds) 200,000 4,171 (e)
due 10/5/95.... 200,000 659 (e)
----------
(20,906)
----------
Total Forward
Contracts...... 36,032
----------
Total
Investments
(Cost $9,860,372) (c) 93.6% 9,304,488 (d)
Cash and Other
Assets, Less
Liabilities.... 6.4 631,071
---------------- ----------
Net Assets...... 100.0% $9,935,559
================ ==========
</TABLE>
- --------
(a) Non-income producing securities.
(b) Less than one tenth of a percent.
(c) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(d) At June 30, 1995 net unrealized depreciation for securities was $555,884,
based on cost for Federal income tax purposes. This consisted of aggregate
gross unrealized appreciation for all investments on which there was an
excess of market value over cost of $209,724 and aggregate gross
unrealized depreciation for all investments on which there was an excess
of cost over market value of $765,608.
(e) Represents difference between the value of the contract at the time it was
opened and the value at June 30, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
68
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(f) Forward Foreign Currency Contracts at June 30, 1995:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN CURRENCY VALUE ON CURRENT APPRECIATION/
SALE CONTRACTS TRADE DATE VALUE (DEPRECIATION)
- ---------------- ---------- ---------- --------------
<S> <C> <C> <C>
Australian Dollar
due 8/23/95............................... $ 254,170 $ 247,530 $ 6,640
Austrian Schilling
due 8/15/95............................... 148,717 147,483 1,234
Belgian Franc
due 7/5/95................................ 300,478 299,920 558
due 10/5/95............................... 299,743 299,929 (186)
Danish Krone
due 8/9/95................................ 285,758 286,394 (636)
Deutsche Mark
due 7/5/95................................ 613,613 619,122 (5,509)
due 7/5/95................................ 365,090 379,307 (14,217)
due 9/6/95................................ 191,341 186,381 4,960
due 10/5/95............................... 17,039 15,517 1,522
due 10/18/95.............................. 507,246 526,514 (19,268)
due 1/5/96................................ 378,324 381,874 (3,550)
French Franc
due 8/2/95................................ 496,196 505,949 (9,753)
Japanese Yen
due 7/5/95................................ 3,384,039 3,302,246 81,793
due 7/5/95................................ 170,000 169,851 149
due 10/5/95............................... 3,363,265 3,342,869 20,396
Pound Sterling
due 7/5/95................................ 316,987 318,178 (1,191)
Spanish Peseta
due 7/20/95............................... 4,350 4,532 (182)
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN CURRENCY VALUE ON CURRENT APPRECIATION/
BUY CONTRACTS TRADE DATE VALUE (DEPRECIATION)
- ---------------- ---------- --------- --------------
<S> <C> <C> <C>
Belgian Franc
due 7/5/95................................. $ 299,631 $ 299,920 $ 289
Deutsche Mark
due 7/5/95................................. 617,465 615,669 (1,796)
due 7/5/95................................. 376,075 379,308 3,233
due 7/20/95................................ 4,350 5,944 1,594
due 8/2/95................................. 496,196 493,034 (3,162)
due 8/9/95................................. 285,758 282,779 (2,979)
due 8/15/95................................ 148,717 147,780 (937)
due 11/3/95................................ 71,617 70,304 (1,313)
Italian Lira
due 9/6/95................................. 191,342 192,245 903
Japanese Yen
due 7/5/95................................. 170,000 165,974 (4,026)
due 7/5/95................................. 3,323,369 3,300,005 (23,364)
Pound Sterling
due 7/5/95................................. 313,981 318,152 4,171
due 10/5/95................................ 316,781 317,440 659
--------
$ 36,032
========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
69
<PAGE>
- -------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
The table below sets forth the diversification of International Equity Portfo-
lio investments by industry.
COMMON STOCKS, PREFERRED STOCK & SHORT-TERM INVESTMENTS
<TABLE>
<CAPTION>
VALUE PERCENT +
--------------------
<S> <C> <C>
Aerospace & Military Technology............................ $ 11,212 0.1%
Appliances & Household Durables............................ 241,669 2.4
Automobiles................................................ 263,601 2.7
Banking.................................................... 2,112,128 21.3
Beverages & Tobacco........................................ 232,197 2.4
Broadcasting & Publishing.................................. 97,205 1.0
Building Materials & Components............................ 207,793 2.1
Business & Public Services................................. 188,414 1.9
Chemicals.................................................. 303,258 3.1
Construction & Housing..................................... 222,661 2.3
Data Processing & Reproduction............................. 81,389 0.8
Electrical & Electronics................................... 281,561 2.8
Electronic Components & Instruments........................ 442,973 4.5
Energy Sources............................................. 634,002 6.4
Financial Services......................................... 230,588 2.3
Food & Household Products.................................. 218,549 2.2
Forest Products & Paper.................................... 76,580 0.8
Health & Personal Care..................................... 332,444 3.3
Industrial Components...................................... 131,395 1.3
Insurance.................................................. 297,341 3.0
Leisure & Tourism.......................................... 33,375 0.4
</TABLE>
<TABLE>
<CAPTION>
VALUE PERCENT +
--------------------
<S> <C> <C>
Machinery & Engineering................................................................................... $ 262,201 2.6%
Merchandising............................................................................................. 314,303 3.2
Metals--Nonferrous........................................................................................ 91,479 0.9
Metals--Steel............................................................................................. 111,954 1.1
Miscellaneous--Materials & Commodities.................................................................... 31,431 0.3
Miscellaneous--Materials & Components..................................................................... 44,101 0.4
Multi-Industry............................................................................................ 331,175 3.3
Real Estate............................................................................................... 74,447 0.7
Recreation & Other Consumer Goods......................................................................... 56,186 0.6
Telecommunications........................................................................................ 272,281 2.7
Textiles & Apparel........................................................................................ 9,901 0.1
Tire & Rubber............................................................................................. 14,186 0.1
Transportation--Airlines.................................................................................. 126,872 1.3
Transportation--Road
& Rail................................................................................................... 144,811 1.5
Transportation--Shipping.................................................................................. 132,099 1.3
Utilities--Electrical
& Gas.................................................................................................... 528,877 5.3
Wholesale &
International Trade...................................................................................... 81,817 0.8
---------- -----
9,268,456 93.3
Forward Contracts......................................................................................... 36,032 0.3
Cash and Other Assets, Less Liabilities................................................................... 631,071 6.4
---------- -----
Net Assets................................................................................................ $9,935,559 100.0%
========== =====
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
70
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$9,860,372)..................................................... $ 9,304,488
Cash denominated in foreign currencies (identified cost
$491,589)....................................................... 495,337
Cash............................................................. 424,031
Receivables:
Investment securities sold....................................... 500,000
Fund shares sold................................................. 39,366
NYLIAC........................................................... 31,924
Dividends and interest........................................... 24,507
Unamortized organization expense
(Note 2)........................................................ 71,084
Other assets..................................................... 60
-----------
Total assets................................................... 10,890,797
-----------
LIABILITIES:
Payables:
Investment securities purchased.................................. 849,563
Organization..................................................... 73,500
Custodian........................................................ 10,000
Recordkeeping.................................................... 7,764
Adviser.......................................................... 4,864
Administrator.................................................... 811
Directors........................................................ 150
Accrued expenses................................................. 8,586
-----------
Total liabilities.............................................. 955,238
-----------
Net assets applicable to
outstanding shares.............................................. $ 9,935,559
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized...................................................... $ 10,455
Additional paid-in capital....................................... 10,428,129
Accumulated undistributed net
investment income............................................... 47,511
Accumulated net realized loss
on investments.................................................. (7)
Accumulated undistributed net realized gain on foreign currency
transactions.................................................... 1,373
Net unrealized depreciation
on investments.................................................. (591,916)
Net unrealized appreciation on translation of assets and
liabilities in foreign currencies............................... 40,014
-----------
Net assets applicable to
outstanding shares.............................................. $ 9,935,559
===========
Shares of capital stock outstanding.............................. 1,045,505
===========
Net asset value per share outstanding............................ $ 9.50
===========
For the period May 1, 1995 (Commencement of Operations)
through June 30, 1995
</TABLE>
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)...................................................... $ 47,634
Interest........................................................... 15,683
---------
Total income..................................................... 63,317
---------
Expenses: (Note 2)
Recordkeeping ..................................................... 14,113
Custodian.......................................................... 10,000
Advisory (Note 3).................................................. 9,777
Auditing........................................................... 5,710
Administration (Note 3)............................................ 3,259
Amortization of organization expense............................... 2,416
Portfolio pricing.................................................. 2,237
Shareholder communication.......................................... 1,483
Directors.......................................................... 150
Legal.............................................................. 85
Miscellaneous...................................................... 130
---------
Total expenses
before reimbursement............................................ 49,360
Expense reimbursement from
Administrator (Note 3)............................................ (33,554)
---------
Net expenses..................................................... 15,806
---------
Net investment income.............................................. 47,511
---------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Security transactions.............................................. (7)
Foreign currency transactions...................................... 1,373
---------
Net realized gain on investments and foreign currency transactions. 1,366
---------
Net unrealized appreciation (depreciation) on investments:
Security transactions.............................................. (591,916)
Translation of assets and liabilities in foreign currencies........ 40,014
---------
Net unrealized loss on investments and foreign currencies.......... (551,902)
---------
Net realized and unrealized loss
on investments and foreign
currency transactions............................................. (550,536)
---------
Net decrease in net assets resulting
from operations................................................... $(503,025)
=========
</TABLE>
- --------
(a) Dividends recorded net of foreign withholding taxes in the amount of
$6,583.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
71
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the period May 1, 1995 (Commencement of Operations)
through June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995
----------
<S> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income............................................ $ 47,511
Net realized loss on investments................................. (7)
Net realized gain on foreign currency transactions............... 1,373
Net unrealized depreciation on investments....................... (591,916)
Net unrealized appreciation on translation of assets and liabili-
ties in foreign currencies...................................... 40,014
-----------
Net decrease in net assets resulting from operations............. (503,025)
-----------
Capital share transactions:
Net proceeds from sale of shares................................. 474,411
Cost of shares redeemed.......................................... (35,827)
-----------
Increase in net assets derived from capital share transactions.. 438,584
-----------
Net decrease in net assets...................................... (64,441)
NET ASSETS:
Beginning of period.............................................. 10,000,000
-----------
End of period.................................................... $ 9,935,559
===========
Accumulated undistributed net investment income.................. $ 47,511
===========
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
MAY 1,
1995 (A)
THROUGH
JUNE 30,
1995*
--------
<S> <C>
Net asset value at beginning of period................................ $10.00
------
Net investment income................................................. 0.05
Net realized and unrealized loss on investments....................... (0.59)
Net realized and unrealized gain on foreign currency transactions..... 0.04
------
Total from investment operations...................................... (0.50)
------
Net asset value at end of period...................................... $ 9.50
======
Total investment return (b)........................................... (4.97%)
Ratios (to average net assets)/Supplemental Data:
Net investment income................................................ 2.92%+
Net expenses......................................................... 0.97%+
Expenses (before reimbursement)...................................... 3.03%+
Portfolio turnover rate............................................... 0%
Net assets at end of period (in 000's)................................ $9,936
</TABLE>
- --------
(a) Commencement of Operations.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
72
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (40.6%)+
ASSET-BACKED SECURITIES (3.7%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
Auto Leases (0.4%)
Ford Credit Auto
Lease Trust
Series 1995-1
Class A2
6.35%, due
10/15/98....... $ 600,000 $ 600,846
-----------
Auto Loans (0.2%)
Union Acceptance
Corp.
Series 1995-B
Class A
6.575%, due
7/10/02........ 264,677 266,167
-----------
Credit Card
Receivables (1.0%)
People's Bank
Credit Card
Master Trust
Series 1995-1
Class A
6.263%, due
8/15/03 (d) 400,000 400,000
Standard Credit
Card
Master Trust
Series 1993-3
Class A
5.50%, due
2/7/00......... 450,000 439,101
Series 1995-4
Class A
6.225%, due
2/15/00 (d) 725,000 725,000
-----------
1,564,101
-----------
Home Equity
Loans (1.8%)
Beneficial Home
Equity
Loan Trust
Series 1995-1
Class A1
6.283%, due 3/28/25 (d). 768,346 768,584
Contitrade
Services
Home Equity
Loan Trust
Series 1991-1
Class A
8.80%, due
1/15/06........ 483,058 501,023
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
Home Equity
Loans (Continued)
Green Tree Home
Improvement Loan
Trust
Series 1995-C
Class A1
6.20%, due
7/15/20........ $ 525,000 $ 524,753
Merrill Lynch
Home Equity Loan
Series 1995-1
Class A1
6.375%, due
4/15/05 (d) 366,309 366,309
Money Store Home
Equity Trust
(The)
Series 1995-A2
Class A7
6.583%, due
6/15/25 (d) 493,357 493,895
-----------
2,654,564
-----------
Mortgage Loans (0.3%)
Nomura Asset
Securities Corp.
Series 1994-MD2
Class A1
7.328%, due
7/7/03 (d)..... 451,659 461,396
-----------
Total Asset-
Backed
Securities
(Cost
$5,520,372)..... 5,547,074
-----------
CORPORATE BONDS (3.3%)
Banks (0.9%)
Bankers Trust
New York Corp.
9.50%, due
6/14/00........ 225,000 249,525
NationsBank Corp.
10.20%, due
7/15/15........ 250,000 310,295
Republic New York
Corp.
6.938%, due
1/29/49 (d) 410,000 394,625
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
73
<PAGE>
- --------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
CORPORATE BONDS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
Banks (Continued)
Southtrust Bank
Birmingham,
Alabama
7.69%, due
5/15/25........ $ 400,000 $ 424,136
------------
1,378,581
------------
Brokerage (0.6%)
Lehman Brothers
Holdings Inc.
8.80%, due
3/1/15......... 600,000 650,292
Smith Barney
Holdings Inc.
7.98%, due
3/1/00......... 250,000 262,280
------------
912,572
------------
Euro Bond (0.3%)
General Electric
Capital Corp.
8.125%, due
2/23/07........ 450,000 494,244
------------
Finance (0.7%)
Associates Corp.
of
North America
6.84%, due
4/6/00......... 475,000 481,640
Ford Motor Credit
Co.
6.595%, due
4/5/99 (d)..... 525,000 513,975
------------
995,615
------------
Telephone
Utilities (0.6%)
Pacific Bell
7.375%, due
7/15/43........ 425,000 414,881
U.S. West
Communications
7.125%, due
11/15/43....... 425,000 401,166
------------
816,047
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
Utilities (0.2%)
Public Service
Electric
& Gas Co.
6.125%, due
8/1/02......... $ 325,000 $ 313,352
------------
Total Corporate
Bonds (Cost
$4,737,355)..... 4,910,411
------------
U.S. GOVERNMENT &
FEDERAL AGENCIES (31.6%)
Federal Home Loan
Mortgage
Corporation (0.4%)
6.54%, due
3/21/01........ 650,000 644,443
------------
Federal Home Loan
Mortgage Corporation
(Collateralized Mortgage
Obligations) (1.6%)
Series 1716
Class PH
6.50%, due
12/15/08....... 300,000 294,468
Series 1062
Class H
6.50%, due
4/15/21........ 850,000 810,687
Series 1257
Class H
7.00%, due
5/15/07........ 600,000 598,500
Series 1681
Class L
7.00%, due
3/15/24........ 650,000 613,438
------------
2,317,093
------------
Federal Home Loan
Mortgage Corporation
(Mortgage Backed
Securities) (2.5%)
6.00%, due
8/1/24......... 1,582,530 1,486,597
6.50%, due
2/1/24......... 1,195,379 1,151,114
7.00%, due
7/1/24......... 657,075 646,089
11.00%, due
1/1/16......... 480,823 530,857
------------
3,814,657
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
74
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
U.S. GOVERNMENT &FEDERAL AGENCIES (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Federal National Mortgage
Association (2.4%)
4.875%, due
10/15/98........ $ 550,000 $ 527,846
5.18%, due
2/1/99.......... 525,000 506,588
5.30%,
due 8/25/98-
12/10/98........ 975,000 946,711
5.35%, due
8/12/98......... 825,000 803,393
5.39%, due
8/5/98.......... 700,000 682,549
------------
3,467,087
------------
Federal National
Mortgage Association
(Collateralized Mortgage
Obligations) (0.6%)
Series 1993-76
Class B
6.00%, due
6/25/08......... 522,941 480,944
Series 1993-89
Class D
7.00%, due
6/25/23......... 475,000 445,612
------------
926,556
------------
Federal National
Mortgage Association
(Mortgage Backed
Securities) (2.9%)
6.50%,
due 9/18/10 TBA
(b)............. 1,950,000 1,918,917
9.00%, due
7/1/07.......... 341,705 357,403
10.00%,
due 2/1/05-
5/1/22.......... 1,803,773 1,946,067
------------
4,222,387
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
Government National
Mortgage Association
(Mortgage Backed
Securities) (7.8%)
7.00%,
due 7/19/10 TBA
(b)............ $2,625,000 $ 2,637,311
9.00%,
due 11/15/17-
12/15/17....... 2,093,847 2,218,179
9.00%,
due 12/31/17 TBA
(b)............ 900,000 953,442
9.50%,
due 12/15/19-
3/15/23........ 1,921,456 2,055,958
10.00%,
due 12/15/10-
12/15/17....... 3,006,286 3,287,435
11.00%, due
6/15/20........ 350,000 390,250
------------
11,542,575
------------
United States Treasury
Bonds (5.6%)
7.50%, due
11/15/24....... 5,625,000 6,223,556
11.625%, due
11/15/04....... 1,525,000 2,096,402
------------
8,319,958
------------
United States Treasury
Notes (7.8%)
7.75%, due
12/31/99....... 6,425,000 6,859,716
8.125%, due
2/15/98 (c) 3,950,000 4,161,680
8.875%, due
2/15/99........ 550,000 601,563
------------
11,622,959
------------
Total U.S.
Government &
Federal Agencies
(Cost
$45,479,822).... 46,877,715
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
75
<PAGE>
- --------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
YANKEE BONDS (2.0%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
BCH Cayman
Islands
8.25%, due
6/15/04........ $ 250,000 $ 261,497
Canada-Global
6.50%, due
5/30/00........ 350,000 354,501
China
International
Trust
& Investing
Corp.
9.00%, due
10/15/06....... 275,000 294,976
Hydro-Quebec
8.05%, due
7/7/24......... 625,000 679,438
Province of Nova
Scotia
9.25%, due
3/1/20......... 325,000 379,398
Republic of Italy
6.875%, due
9/27/23........ 725,000 648,070
Wharf Capital
International
Ltd.
8.875%, due
11/1/04........ 375,000 390,529
------------
Total Yankee
Bonds
(Cost
$2,875,318)..... 3,008,409
------------
Total Long-Term
Bonds
(Cost
$58,612,867).... 60,343,609
------------
COMMON STOCKS (52.5%)
Airlines (0.9%)
Atlantic
Southeast
Airlines, Inc... 25,900 780,238
Southwest
Airlines Co..... 23,550 562,256
------------
1,342,494
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Banks (2.3%)
Bank of New York
Co., Inc........ 27,100 $ 1,094,162
Barnett Banks,
Inc............. 16,000 820,000
First Interstate
Bancorp......... 15,800 1,267,950
NationsBank
Corp. .......... 3,100 166,238
------------
3,348,350
------------
Brokerage (0.3%)
Bear Stearns
Companies Inc.
(The)........... 4,961 106,042
Schwab (Charles) Corp. . 7,350 318,806
------------
424,848
------------
Buildings (0.7%)
Lennar Corp. .... 17,200 322,500
Oakwood Homes
Corp. .......... 28,300 725,187
------------
1,047,687
------------
Computers & Office
Equipment (3.9%)
Alco Standard
Corp............ 19,200 1,533,600
Danka Business
Systems Plc ADR
(e)............. 32,000 774,000
EMC Corp. (a).... 56,000 1,358,000
Hewlett-Packard
Co.............. 16,700 1,244,150
Sun Microsystems,
Inc. (a)........ 18,200 882,700
------------
5,792,450
------------
Consumer
Durables (1.4%)
Black & Decker
Corp. .......... 37,600 1,160,900
Harley-Davidson,
Inc............. 39,500 962,813
------------
2,123,713
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
76
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Consumer
Staples (0.6%)
Loewen Group,
Inc. ........... 25,000 $ 890,625
------------
Drugs (4.0%)
Amgen, Inc. (a).. 24,700 1,986,806
Elan Corp. Plc
ADR (a)(e) 25,400 1,035,050
Mylan
Laboratories,
Inc. ........... 31,000 953,250
Schering-Plough
Corp............ 27,400 1,209,025
Teva
Pharmaceutical
Industries Ltd.
ADR (e)......... 18,000 675,000
------------
5,859,131
------------
Electronics (1.6%)
Sensormatic
Electronics
Corp............ 26,500 940,750
Vishay
Intertechnology,
Inc. (a)........ 40,374 1,458,511
------------
2,399,261
------------
Finance (3.8%)
Federal National
Mortgage
Association..... 12,700 1,198,562
Green Tree
Financial Corp.. 42,400 1,881,500
Household
International
Inc............. 24,000 1,188,000
Travelers Group,
Inc............. 30,600 1,338,750
------------
5,606,812
------------
Financial
Services (1.9%)
First USA, Inc... 28,700 1,273,563
SunAmerica Inc. . 31,500 1,606,500
------------
2,880,063
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Health Care (2.8%)
Columbia/HCA
Healthcare
Corp............ 32,369 $ 1,399,959
HealthCare
COMPARE Corp.
(a)............. 18,900 567,000
Humana, Inc. (a). 24,500 431,813
Sierra Health
Services, Inc.
(a)............. 16,500 404,250
United Healthcare
Corp............ 33,200 1,373,650
------------
4,176,672
------------
Household
Products (0.9%)
Lancaster Colony
Corp............ 19,566 699,484
Leggett & Platt,
Inc............. 12,100 532,400
Singer Company
N.V. (The) 3,600 93,150
------------
1,325,034
------------
Insurance (0.9%)
American
International
Group, Inc...... 12,100 1,379,400
------------
Media (1.1%)
Viacom Inc. Class
A (a)........... 3,288 152,892
Viacom Inc. Class
B (a)........... 32,112 1,489,194
------------
1,642,086
------------
Medical
Equipment (1.9%)
Cordis Corp. (a). 17,900 1,194,825
Medtronic, Inc... 20,100 1,550,213
------------
2,745,038
------------
Medical Supplies (0.4%)
American
Homepatient,
Inc. (a)........ 22,000 654,500
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
77
<PAGE>
- --------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Publishing (0.7%)
News Corp. Ltd.
ADR (e) 43,900 $ 993,238
------------
Recreation &
Entertainment (0.3%)
Boomtown, Inc.
(a)............. 4,600 55,200
Callaway Golf
Co.............. 25,500 382,500
------------
437,700
------------
Restaurants &
Lodging (1.6%)
Hospitality
Franchise
Systems, Inc.
(a)............. 43,700 1,513,113
Lone Star
Steakhouse
& Saloon, Inc.
(a)............. 25,000 757,812
ShoLodge, Inc.
(a)............. 10,000 148,750
------------
2,419,675
------------
Retail (6.4%)
Cato Corp. Class
A............... 26,000 211,250
Circuit City
Stores, Inc..... 27,100 857,037
Dollar General
Corp. .......... 56,937 1,800,633
Hollywood
Entertainment
Corp. (a)....... 22,000 990,000
Home Depot, Inc.
(The)........... 24,000 975,000
Kohl's Corp. (a). 17,100 780,187
Kroger Co. (The)
(a)............. 38,800 1,042,750
Lowe's Companies,
Inc............. 38,000 1,135,250
Michaels Stores,
Inc. (a)........ 21,000 446,250
Office Depot,
Inc. (a)........ 44,250 1,244,531
------------
9,482,888
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Software (1.8%)
Computer
Associates
International,
Inc............. 30,600 $ 2,073,150
Microsoft Corp.
(a)............. 6,800 614,550
------------
2,687,700
------------
Technology (10.5%)
American Power
Conversion Corp.
(a)............. 43,000 983,625
General Motors
Corp. Class E... 20,000 870,000
Intel Corp....... 37,000 2,342,562
Lam Research
Corp. (a)....... 28,350 1,814,400
Linear Technology
Corp. 14,000 924,000
Micron Technology
Inc............. 52,000 2,853,500
Motorola, Inc.... 17,500 1,174,688
Oracle Corp. (a). 42,250 1,631,906
3Com Corp. (a)... 37,100 2,485,700
3D Systems Corp.
(a)............. 26,000 481,000
------------
15,561,381
------------
Telecommunication
Equipment (0.6%)
ADC
Telecommunications
Inc. (a)........ 25,000 893,750
------------
Telecommunication
Services (0.8%)
WorldCom, Inc.
(a)............. 43,016 1,161,432
------------
Turnkey & Software
Systems (0.4%)
Sterling
Software, Inc.
(a) 14,500 558,250
------------
Total Common
Stocks (Cost
$60,263,279).... 77,834,178
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
78
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PREFERRED STOCK (0.3%)
<TABLE>
<CAPTION>
SHARES VALUE
------------------------
<S> <C> <C>
Publishing (0.3%)
News Corp. Ltd.
ADR--
Preference
Shares (e)..... 18,900 $ 378,000
------------
Total Preferred
Stock (Cost
$302,632)....... 378,000
------------
SHORT-TERM
INVESTMENTS (11.2%)
PRINCIPAL
AMOUNT
-----------
Commercial Paper (5.2%)
Barclays U.S.
Funding Corp.
6.00%, due
7/12/95........ $ 2,000,000 2,000,000
Ford Motor Credit
Co.
5.96%, due
7/21/95........ 1,000,000 1,000,000
6.05%, due
7/3/95......... 2,285,000 2,285,000
Prudential
Funding Corp.
5.93%, due
7/21/95........ 2,500,000 2,500,000
------------
Total Commercial
Paper
(Cost
$7,785,000)..... 7,785,000
------------
U.S. Government &
Federal Agency (6.0%)
Federal Home Loan
Bank
13.50%,
due 11/15/95
(c)............. 2,500,000 2,567,775
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
------------------------
U.S. Government &
Federal Agency
(Continued)
United States
Treasury Note
10.50%,
due 8/15/95
(c)............ $6,225,000 $ 6,258,055
------------
Total U.S.
Government &
Federal Agency
(Cost
$8,859,398).... 8,825,830
------------
Total Short-Term
Investments
(Cost
$16,644,398)... 16,610,830
------------
Total
Investments
(Cost
$135,823,176)
(f) 104.6% 155,166,617 (g)
Liabilities in
Excess of Cash
and Other
Assets (4.6) (6,862,195)
---------- ------------
Net Assets...... 100.0% $148,304,422
========== ============
</TABLE>
- --------
(a) Non-income producing securities.
(b) TBA: Securities purchased on a forward commitment basis with an approxi-
mate principal amount and no definite maturity date. The actual principal
amount and the maturity date will be determined upon settlement.
(c) Segregated or partially segregated as collateral for TBA.
(d) Floating rate. Rate shown is the rate in effect at June 30, 1995.
(e) ADR--American Depository Receipt.
(f) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(g) At June 30, 1995 net unrealized appreciation was $19,343,441, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $20,815,292 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $1,471,851.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
79
<PAGE>
- --------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$135,823,176).................................................. $155,166,617
Cash............................................................ 44,877
Receivables:
Investment securities sold...................................... 7,321,151
Dividends and interest.......................................... 1,198,216
Fund shares sold................................................ 85,243
NYLIAC.......................................................... 52,830
Other assets.................................................... 759
------------
Total assets.................................................. 163,869,693
------------
LIABILITIES:
Payables:
Investment securities purchased................................. 15,447,365
Adviser......................................................... 38,521
Recordkeeping................................................... 31,237
Administrator................................................... 11,889
Custodian....................................................... 5,161
Directors....................................................... 1,044
Accrued expenses................................................ 30,054
------------
Total liabilities............................................. 15,565,271
------------
Net assets applicable to
outstanding shares............................................. $148,304,422
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 50 million shares
authorized..................................................... $ 120,972
Additional paid-in capital...................................... 132,183,314
Accumulated undistributed net investment income................. 2,244,963
Accumulated net realized loss
on investments................................................. (5,588,268)
Net unrealized appreciation
on investments................................................. 19,343,441
------------
Net assets applicable to
outstanding shares............................................. $148,304,422
============
Shares of capital stock outstanding............................. 12,097,207
============
Net asset value per share outstanding........................... $ 12.26
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)..................................................... $ 241,166
Interest.......................................................... 2,453,738
-----------
Total income.................................................... 2,694,904
-----------
Expenses: (Note 2)
Advisory (Note 3)................................................. 207,651
Recordkeeping..................................................... 152,143
Administration (Note 3)........................................... 129,782
Custodian......................................................... 16,388
Auditing.......................................................... 13,613
Shareholder communication......................................... 10,036
Directors......................................................... 6,081
Amortization of organization expense.............................. 5,446
Legal............................................................. 4,833
Miscellaneous..................................................... 8,619
-----------
Total expenses
before reimbursement........................................... 554,592
Expense reimbursement from Administrator (Note 3)................. (106,844)
-----------
Net expenses.................................................... 447,748
-----------
Net investment income............................................. 2,247,156
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments.................................. 436,871
Net change in unrealized appreciation
on investments................................................... 16,744,960
-----------
Net realized and unrealized gain
on investments................................................... 17,181,831
-----------
Net increase in net assets resulting
from operations.................................................. $19,428,987
===========
</TABLE>
- --------
(a) Dividends recorded net of foreign withholding taxes in the amount of $859.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
80
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income............................. $ 2,247,156 $ 3,244,271
Net realized gain (loss) on investments........... 436,871 (5,792,589)
Net change in unrealized appreciation on invest-
ments............................................ 16,744,960 (108,863)
------------ ------------
Net increase (decrease) in net assets resulting
from operations.................................. 19,428,987 (2,657,181)
------------ ------------
Dividends to shareholders:
From net investment income........................ (10,000) (3,194,834)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 20,030,586 72,065,497
Net asset value of shares issued to shareholders
in reinvestment of dividends..................... 10,000 3,194,834
------------ ------------
20,040,586 75,260,331
Cost of shares redeemed........................... (13,487,712) (2,623,995)
------------ ------------
Increase in net assets derived from capital share
transactions.................................... 6,552,874 72,636,336
------------ ------------
Net increase in net assets....................... 25,971,861 66,784,321
NET ASSETS:
Beginning of period............................... 122,332,561 55,548,240
------------ ------------
End of period..................................... $148,304,422 $122,332,561
============ ============
Accumulated undistributed net investment income... $ 2,244,963 $ 7,807
============ ============
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
JANUARY 29,
SIX MONTHS 1993 (A)
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1995* 1994 1993
---------- ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period. $ 10.58 $ 11.32 $ 10.00
-------- -------- -------
Net investment income.................. 0.18 0.27 0.16
Net realized and unrealized gain (loss)
on investments........................ 1.50 (0.72) 1.34
-------- -------- -------
Total from investment operations....... 1.68 (0.45) 1.50
-------- -------- -------
Less dividends and distributions:
From net investment income............ (0.00)(b) (0.29) (0.16)
In excess of net realized gain on
investments.......................... -- -- (0.02)
-------- -------- -------
Total dividends and distributions...... (0.00)(b) (0.29) (0.18)
-------- -------- -------
Net asset value at end of period....... $ 12.26 $ 10.58 $ 11.32
======== ======== =======
Total investment return (c)............ 15.85% (3.99%) 15.04%
Ratios (to average net
assets)/Supplemental Data:
Net investment income................. 3.46%+ 3.50% 3.48%+
Net expenses.......................... 0.69%+ 0.69% 0.69%+
Expenses (before reimbursement)....... 0.85%+ 0.88% 1.07%+
Portfolio turnover rate................ 147% 297% 197%
Net assets at end of period (in 000's). $148,304 $122,333 $55,548
</TABLE>
- --------
(a) Commencement of Operations.
(b) Less than one cent per share.
(c) Total return is not annualized.
+ Annualized.
* Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
81
<PAGE>
- --------------------------------------------------------------------------------
VALUE PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (76.2%)+
<TABLE>
<CAPTION>
SHARES VALUE
-------------------
<S> <C> <C>
Banks (3.5%)
First Fidelity Bancorp..................................................................................... 1,600 $ 94,400
First Interstate Bancorp................................................................................... 900 72,225
National City Corp......................................................................................... 1,900 55,813
----------
222,438
----------
Beverages (1.1%)
Anheuser-Busch Cos., Inc................................................................................... 1,200 68,250
----------
Capital Goods (1.0%)
Honeywell Inc.............................................................................................. 1,500 64,688
----------
Chemicals (11.7%)
Agrium, Inc................................................................................................ 1,500 50,766
Dow Chemical Co. (The)..................................................................................... 900 64,687
FMC Corp. (a).............................................................................................. 1,000 67,250
Geon Co. (The)............................................................................................. 3,100 89,125
Georgia Gulf Corp.......................................................................................... 2,400 78,300
IMC Global, Inc. .......................................................................................... 1,700 92,013
Lyondell Petrochemical Co.................................................................................. 3,500 89,687
Potash Corp. of
Saskatchewan Inc.......................................................................................... 1,000 55,875
PPG Industries, Inc........................................................................................ 1,900 81,700
Vigoro Corp. (The)......................................................................................... 2,000 83,000
----------
752,403
----------
Computers & Office
Equipment (0.8%)
Unisys Corp. (a)........................................................................................... 4,900 53,287
----------
Conglomerates (1.7%)
Whitman Corp............................................................................................... 5,500 106,563
----------
Defense Electronics (3.6%)
Litton Industries, Inc. (a)................................................................................ 3,000 110,625
Lockheed Martin Corp....................................................................................... 1,900 119,937
----------
230,562
- --------------------------------------------------
----------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
SHARES VALUE
-------------------
<S> <C> <C>
Domestic Oils (4.0%)
Noble Affiliates, Inc....................................... 2,000 $ 51,000
Parker & Parsley
Petroleum Co. ............................................. 3,400 66,725
Santa Fe Energy
Resources, Inc. (a)........................................ 6,000 57,000
Unocal Corp................................................. 3,000 82,875
----------
257,600
----------
Drugs (2.7%)
Merck & Co., Inc............................................ 1,800 88,200
Warner-Lambert Co. ......................................... 1,000 86,375
----------
174,575
----------
Energy (5.8%)
Coastal Corp................................................ 2,700 82,013
Horsham Corp................................................ 4,000 54,000
MAPCO, Inc.................................................. 1,400 81,200
Panhandle Eastern Corp. .................................... 3,300 80,437
Tosco Corp. ................................................ 2,400 76,500
----------
374,150
----------
Finance (0.5%)
Travelers Group, Inc........................................ 700 30,625
----------
Food (2.9%)
Archer Daniels Midland Co................................... 5,000 93,125
IBP, Inc.................................................... 2,200 95,700
----------
188,825
----------
Food, Beverages &
Tobacco (2.1%)
Philip Morris Cos. Inc...................................... 1,800 133,875
----------
Health Care (1.3%)
U.S. Healthcare, Inc. ...................................... 2,700 82,687
----------
Insurance (5.3%)
Chubb Corp. (The)........................................... 1,000 80,125
Providian Corp.............................................. 2,200 79,750
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
82
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-------------------
<S> <C> <C>
Insurance (Continued)
SAFECO Corp................................................. 900 $ 51,694
St. Paul Cos., Inc.......................................... 1,500 73,875
Torchmark Corp.............................................. 1,500 56,625
----------
342,069
----------
International Oils (1.8%)
Occidental Petroleum Corp................................... 2,500 57,187
Union Texas Petroleum Holdings, Inc......................... 2,800 59,150
----------
116,337
----------
Paper & Forest Products (3.0%)
Chesapeake Corp............................................. 3,500 108,937
Rayonier, Inc............................................... 2,300 81,650
----------
190,587
----------
Publishing (1.4%)
American Greetings Corp. ................................... 3,000 88,125
----------
Railroads (3.4%)
Illinois Central Corp....................................... 2,600 89,700
Union Pacific Corp.......................................... 2,300 127,363
----------
217,063
----------
Real Estate (1.3%)
Meditrust................................................... 2,500 85,313
----------
Retail (11.5%)
American Stores Co.......................................... 3,000 84,375
Consolidated Stores
Corp. (a).................................................. 3,000 62,625
Dillard Department
Stores, Inc................................................ 2,500 73,437
Federated Department
Stores, Inc. (a)........................................... 3,100 79,825
Kroger Co. (The) (a)........................................ 3,000 80,625
Limited Inc. (The).......................................... 3,400 74,800
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------------------
<S> <C> <C>
Retail (Continued)
Mac Frugals Bargains
Close-Outs, Inc. (a)...................................... 3,600 $ 63,000
Payless Cashways, Inc. (a)................................. 7,000 44,625
Penney (J.C.) Co., Inc..................................... 2,000 96,000
Sears, Roebuck and Co...................................... 1,400 83,825
----------
743,137
----------
Technology (1.5%)
Apple Computer, Inc........................................ 2,000 92,875
----------
Textile & Apparel (1.7%)
Fruit of the Loom, Inc. (a)................................ 2,600 54,925
Jones Apparel Group, Inc. (a).............................. 1,900 56,763
----------
111,688
----------
Utilities--Electric (2.6%)
Niagara Mohawk Power Corp. 5,700 84,075
Pinnacle West Capital Corp. ............................... 3,500 85,750
----------
169,825
----------
Total Common Stocks
(Cost $4,696,510)......................................... 4,897,547
----------
</TABLE>
SHORT-TERM
INVESTMENTS (24.3%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
--------
<S> <C> <C>
Commercial Paper (24.3%)
American General Finance Corp.
5.88%, due 7/5/95......................................... $156,000 156,000
Beneficial Corp.
6.00%, due 7/11/95........................................ 303,000 303,000
Chevron Oil Finance Co. 5.92%, due 7/3/95.................. 232,000 232,000
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
83
<PAGE>
- -------------------------------------------------------------------------------
VALUE PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------
<S> <C> <C>
Commercial Paper
(Continued)
Ford Motor Credit Co.
5.95%, due 7/7/95........................................ $325,000 $ 325,000
Prudential Funding Corp. 5.98%, due 7/10/95............... 229,000 229,000
Texaco Inc.
5.96%, due 7/6/95........................................ 320,000 320,000
----------
Total Short-Term Investments
(Cost $1,565,000)........................................ 1,565,000
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
----------
<S> <C> <C>
Total Investments
(Cost $6,261,510) (b)........................................... 100.5% $6,462,547 (c)
Liabilities in Excess of
Cash and Other Assets........................................... (0.5) (32,916)
----- ----------
Net Assets....................................................... 100.0% $6,429,631
===== ==========
</TABLE>
- --------
(a) Non-income producing securities.
(b) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(c) At June 30, 1995 net unrealized appreciation was $201,037, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $267,836 and aggregate gross unrealized de-
preciation for all investments on which there was an excess of cost over
market value of $66,799.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
84
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$6,261,510)...................................................... $6,462,547
Cash.............................................................. 230
Receivables:
Investment securities sold........................................ 320,373
Fund shares sold.................................................. 59,316
NYLIAC............................................................ 15,013
Dividends and interest............................................ 10,788
Unamortized organization expense
(Note 2)......................................................... 71,044
Other assets...................................................... 30
----------
Total assets.................................................... 6,939,341
----------
LIABILITIES:
Payables:
Investment securities purchased................................... 422,305
Organization...................................................... 73,500
Recordkeeping..................................................... 4,121
Adviser........................................................... 1,736
Custodian......................................................... 1,118
Administrator..................................................... 482
Directors......................................................... 81
Accrued expenses.................................................. 6,367
----------
Total liabilities............................................... 509,710
----------
Net assets applicable to
outstanding shares............................................... $6,429,631
==========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized....................................................... $ 617
Additional paid-in capital........................................ 6,198,792
Accumulated undistributed net
investment income................................................ 33,688
Accumulated net realized loss
on investments................................................... (4,503)
Net unrealized appreciation
on investments................................................... 201,037
----------
Net assets applicable to
outstanding shares............................................... $6,429,631
==========
Shares of capital stock outstanding............................... 616,922
==========
Net asset value per share outstanding............................. $ 10.42
==========
</TABLE>
STATEMENT OF OPERATIONS
For the period May 1, 1995 (Commencement of Operations)
through June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends............................................................ $ 14,523
Interest............................................................. 25,870
--------
Total income....................................................... 40,393
--------
Expenses: (Note 2)
Recordkeeping........................................................ 7,500
Auditing............................................................. 5,331
Advisory (Note 3).................................................... 3,306
Amortization of organization expense................................. 2,456
Administration (Note 3).............................................. 1,837
Custodian............................................................ 1,118
Shareholder communication............................................ 800
Directors............................................................ 81
Legal................................................................ 46
Miscellaneous........................................................ 161
--------
Total expenses
before reimbursement.............................................. 22,636
Expense reimbursement from
Administrator (Note 3).............................................. (15,931)
--------
Net expenses....................................................... 6,705
--------
Net investment income................................................ 33,688
--------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on investments..................................... (4,503)
Net unrealized appreciation
on investments...................................................... 201,037
--------
Net realized and unrealized gain
on investments...................................................... 196,534
--------
Net increase in net assets resulting
from operations..................................................... $230,222
========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
85
<PAGE>
- --------------------------------------------------------------------------------
VALUE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the period May 1, 1995 (Commencement of Operations)
through June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995
----------
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income............................................. $ 33,688
Net realized loss on investments.................................. (4,503)
Net unrealized appreciation on investments........................ 201,037
----------
Net increase in net assets resulting from operations.............. 230,222
----------
Capital share transactions:
Net proceeds from sale of shares.................................. 1,235,158
Cost of shares redeemed........................................... (35,749)
----------
Increase in net assets derived from capital share transactions... 1,199,409
----------
Net increase in net assets....................................... 1,429,631
NET ASSETS:
Beginning of period............................................... 5,000,000
----------
End of period..................................................... $6,429,631
==========
Accumulated undistributed net investment income................... $ 33,688
==========
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
MAY 1,
1995 (A)
THROUGH
JUNE 30,
1995*
--------
<S> <C>
Net asset value at beginning of period.............................. $10.00
------
Net investment income............................................... 0.05
Net realized and unrealized gain on investments..................... 0.37
------
Total from investment operations.................................... 0.42
------
Net asset value at end of period.................................... $10.42
======
Total investment return (c)......................................... 4.22%
Ratios (to average net assets)/Supplemental Data:
Net investment income.............................................. 3.67%+
Net expenses....................................................... 0.73%+
Expenses (before reimbursement).................................... 2.46%+
Portfolio turnover rate............................................. 0%(b)
Net assets at end of period (in 000's).............................. $6,430
</TABLE>
- --------
(a)Commencement of Operations.
(b)Less than one percent.
(c)Total return is not annualized.
+Annualized.
*Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
86
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
BOND PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (97.6%)+
CORPORATE BONDS (52.2%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Banks (8.3%)
BankAmerica Corp. 7.75%, due 7/15/02.................. $ 4,000,000 $ 4,205,000
First Union Corp.
9.45%, due 6/15/99................................... 5,000,000 5,493,750
Golden West
Financial Corp.
10.25%, due 12/1/00.................................. 1,000,000 1,158,750
National City Corp. 8.375%, due 3/15/96............... 2,500,000 2,543,750
Republic New
York Corp.
7.75%, due 5/15/09................................... 5,000,000 5,300,000
------------
18,701,250
------------
Containers (1.7%)
Federal Paper Board Inc. 10.00%, due 4/15/11.......... 3,100,000 3,751,000
------------
Data Processing (1.3%)
International Business Machines Corp. 6.375%, due
6/15/00.............................................. 3,000,000 2,985,000
------------
Diversified
Utilities (7.0%)
Consumers Power Co. 7.375%, due 9/15/23............... 2,000,000 1,885,000
Long Island Lighting Co. 8.75%, due 2/15/97........... 2,000,000 2,060,000
Niagara Mohawk
Power Corp.
7.375%, due 8/1/03................................... 2,000,000 2,005,000
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Diversified Utilities
(Continued)
Pacific Gas &
Electric Co.
6.25%, due 3/1/04.................................... $ 3,000,000 $ 2,902,500
Philadelphia Electric Co. 5.625%, due 11/1/01......... 3,000,000 2,831,250
Public Service Co.
of Colorado
6.00%, due 1/1/01.................................... 3,000,000 2,917,500
Utilicorp United, Inc. 9.30%, due 12/1/95 (a) 1,100,000 1,116,500
------------
15,717,750
------------
Electric Utilities (2.6%)
Commonwealth
Edison Co.
9.75%, due 2/15/20................................... 1,450,000 1,642,125
Ohio Edison Co.
8.50%, due 5/1/96.................................... 1,100,000 1,117,875
Southern California Edison Corp.
5.875%, due 2/1/98................................... 2,000,000 1,980,000
Texas Utilities
Electric Co.
10.35%, due 1/1/18................................... 1,100,000 1,182,500
------------
5,922,500
------------
Finance (11.4%)
American General Finance Corp.
7.00%, due 10/1/97................................... 7,000,000 7,113,750
Chrysler Financial Corp. 8.125%, due 12/15/96......... 6,000,000 6,148,260
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
87
<PAGE>
- --------------------------------------------------------------------------------
BOND PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1994 (Unaudited)
- --------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
CORPORATE BONDS (Continued)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Finance (Continued)
Ford Motor
Credit Co.
6.25%, due
2/26/98........ $ 3,000,000 $ 3,000,000
General Motors
Acceptance
Corp.
7.75%, due
4/15/97....... 5,000,000 5,137,500
9.625%, due
12/15/01...... 1,000,000 1,143,750
Mellon Financial
Co.
7.625%, due
11/15/99....... 3,000,000 3,131,250
------------
25,674,510
------------
Food (0.5%)
ConAgra, Inc.
9.875%, due
11/15/05 1,000,000 1,213,750
------------
Foreign (6.9%)
British
Telecommunications Plc
9.375%, due
2/15/99....... 4,200,000 4,604,250
9.625%, due
2/15/19....... 1,000,000 1,125,000
Canadian
Pacific, Ltd.
8.85%, due
6/1/22......... 2,000,000 2,192,500
National
Westminster
Bancorp, Inc.
9.375%, due
11/15/03....... 2,000,000 2,320,000
Province of Nova
Scotia
8.25%, due
7/30/22........ 5,000,000 5,312,500
------------
15,554,250
------------
Motion Pictures/T.V.
Programming
(1.0%)
Harcourt
General, Inc.
9.50%, due
3/15/00....... 2,000,000 2,220,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Oil & Gas (1.1%)
Phillips
Petroleum Co.
9.18%, due
9/15/21........ $ 1,200,000 $ 1,332,000
Tennessee Gas
Pipeline Co.
9.25%, due
5/15/96........ 1,060,000 1,090,475
------------
2,422,475
------------
Paper/Products (2.3%)
Champion
International
Corp.
9.875%, due
6/1/00......... 4,500,000 5,101,875
------------
Railroads (1.1%)
CSX Corp.
9.00%, due
8/15/06........ 2,200,000 2,541,000
------------
Retail Stores (5.5%)
Price/Costco,
Inc.
7.125%, due
6/15/05........ 5,000,000 5,012,500
Sears Roebuck &
Co.
8.45%, due
11/1/98........ 7,000,000 7,411,250
------------
12,423,750
------------
Telecommunications (1.5%)
AT&T Corp.
8.625%, due
12/1/31........ 2,000,000 2,162,500
GTE Florida,
Inc.
9.625%, due
4/1/30......... 1,000,000 1,058,750
------------
3,221,250
------------
Total Corporate
Bonds
(Cost
$112,190,091).. 117,450,360
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
88
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LONG-TERM BONDS (Continued)
U.S. GOVERNMENT & FEDERAL AGENCIES (45.4%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Federal National Mortgage
Association (4.3%)
4.95%, due
9/30/98........ $10,000,000 $ 9,637,000
10.60%,
due 11/10/95
(a)............. 45,000 45,765
------------
9,682,765
------------
United States Treasury
Bonds (14.7%)
7.50%, due
11/15/24....... 10,000,000 11,069,600
7.625%,
due 2/15/07-
2/15/25......... 20,000,000 21,951,700
------------
33,021,300
------------
United States Treasury
Notes (26.4%)
6.50%, due
5/15/05........ 5,000,000 5,105,800
7.125%, due
2/29/00........ 10,000,000 10,443,600
7.25%, due
8/15/04........ 10,000,000 10,686,900
7.50%,
due 11/15/01-
2/15/05......... 19,300,000 20,836,340
8.50%, due
11/15/00....... 11,200,000 12,454,736
------------
59,527,376
------------
Total U.S.
Government &
Federal Agencies
(Cost
$96,178,348).... 102,231,441
------------
Total Long-Term
Bonds (Cost
$208,368,439)... 219,681,801
------------
</TABLE>
SHORT-TERM INVESTMENT (1.1%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
-------------------------
Commercial Paper (1.1%)
Associates Corp.
of North
America 5.920%,
due on demand
(b)............ $ 2,500,000 $ 2,500,000
------------
Total Short-Term
Investment
(Cost
$2,500,000).... 2,500,000
------------
Total
Investments
(Cost
$210,868,439)
(c) 98.7% 222,181,801(d)
Cash and Other
Assets, Less
Liabilities.... 1.3 2,879,982
----------- ------------
Net Assets...... 100.0% $225,061,783
=========== ============
</TABLE>
- --------
(a) Long-Term securities maturing within the subsequent twelve month period.
(b) Adjustable rate. Rate shown is the rate in effect at June 30, 1995.
(c) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(d) At June 30, 1995 net unrealized appreciation was $11,313,362, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $11,598,263 and aggregate gross unrealized
depreciation of all investments on which there was an excess of cost over
market value of $284,901.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
89
<PAGE>
- --------------------------------------------------------------------------------
BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2) (identified cost
$210,868,439).................................................. $222,181,801
Cash............................................................ 6,891
Receivables:
Interest........................................................ 3,707,372
Investment securities sold...................................... 209,000
Fund shares sold................................................ 68,709
Other assets.................................................... 1,273
------------
Total assets.................................................. 226,175,046
------------
LIABILITIES:
Payables:
NYLIAC.......................................................... 533,015
Fund shares redeemed............................................ 280,253
Adviser......................................................... 136,901
Administrator................................................... 18,501
Recordkeeping................................................... 4,406
Directors....................................................... 1,392
Accrued expenses................................................ 138,795
------------
Total liabilities............................................. 1,113,263
------------
Net assets applicable to
outstanding shares............................................. $225,061,783
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized..................................................... $ 167,393
Additional paid-in capital...................................... 212,906,858
Accumulated undistributed net investment income................. 7,157,922
Accumulated net realized loss
on investments................................................. (6,483,752)
Net unrealized appreciation
on investments................................................. 11,313,362
------------
Net assets applicable to
outstanding shares............................................. $225,061,783
============
Shares of capital stock outstanding............................. 16,739,320
============
Net asset value per share outstanding........................... $ 13.45
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest.......................................................... $ 7,867,419
-----------
Expenses: (Note 2)
Recordkeeping (Note 3)............................................ 491,652
Advisory (Note 3)................................................. 266,005
Administration (Note 3)........................................... 212,804
Shareholder communication......................................... 69,638
Auditing.......................................................... 18,835
Legal............................................................. 11,089
Directors......................................................... 8,543
Portfolio pricing................................................. 4,303
Miscellaneous..................................................... 3,411
-----------
Total expenses
before reimbursement........................................... 1,086,280
Expense reimbursement from
Administrator (Note 3)........................................... (426,588)
-----------
Net expenses.................................................... 659,692
-----------
Net investment income............................................. 7,207,727
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments.................................. 981,388
Net change in unrealized depreciation
on investments................................................... 14,691,148
-----------
Net realized and unrealized gain
on investments .................................................. 15,672,536
-----------
Net increase in net assets resulting
from operations.................................................. $22,880,263
===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
90
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............................. $ 7,207,727 $ 14,086,182
Net realized gain (loss) on investments........... 981,388 (4,481,302)
Net change in unrealized appreciation (deprecia-
tion) on investments............................. 14,691,148 (17,363,837)
------------ ------------
Net increase (decrease) in net assets resulting
from operations.................................. 22,880,263 (7,758,957)
------------ ------------
Dividends to shareholders:
From net investment income........................ (50,000) (14,085,987)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 11,548,643 21,844,680
Net asset value of shares issued to shareholders
in reinvestment of dividends..................... 50,000 14,085,987
------------ ------------
11,598,643 35,930,667
Cost of shares redeemed........................... (16,053,132) (36,082,699)
------------ ------------
Decrease in net assets derived from capital share
transactions.................................... (4,454,489) (152,032)
------------ ------------
Net increase (decrease) in net assets............ 18,375,774 (21,996,976)
NET ASSETS:
Beginning of period............................... 206,686,009 228,682,985
------------ ------------
End of period..................................... $225,061,783 $206,686,009
============ ============
Accumulated undistributed net investment income... $ 7,157,922 $ 195
============ ============
</TABLE>
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31
ENDED
JUNE 30, --------------------------------------------------
1995* 1994 1993 1992 1991 1990
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at be-
ginning of period...... $ 12.09 $ 13.43 $ 12.91 $ 12.77 $ 11.86 $ 12.09
-------- -------- -------- -------- -------- --------
Net investment income... 0.43 0.88 0.95 0.92 1.02 1.12
Net realized and
unrealized gain (loss)
on investments......... 0.93 (1.34) 0.53 0.13 0.91 (0.23)
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 1.36 (0.46) 1.48 1.05 1.93 0.89
-------- -------- -------- -------- -------- --------
Less dividends:
From net investment in-
come.................. (0.00)(a) (0.88) (0.96) (0.91) (1.02) (1.12)
-------- -------- -------- -------- -------- --------
Net asset value at end
of period.............. $ 13.45 $ 12.09 $ 13.43 $ 12.91 $ 12.77 $ 11.86
======== ======== ======== ======== ======== ========
Total investment return
(b).................... 11.25% (3.39%) 11.40% 8.26% 16.27% 7.36%
Ratios (to average net
assets)/Supplemental
Data:
Net investment income.. 6.77%+ 6.53% 6.79% 7.54% 8.22% 8.88%
Net expenses........... 0.62%+ 0.62%# 0.27%# 0.25% 0.25% 0.25%
Expenses (before reim-
bursement)............ 1.02%+ 0.67%# 0.27%# 0.25% 0.25% 0.25%
Portfolio turnover rate. 47% 88% 41% 10% 57% 81%
Net assets at end of pe-
riod (in 000's)........ $225,062 $206,686 $228,683 $203,947 $164,124 $138,826
</TABLE>
- --------
(a) Less than one cent per share.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
# At the MFA Series Fund, Inc.'s shareholders meeting on December 14, 1993,
the shareholders voted to have the Portfolio assume certain administrative
and operating expenses of the Fund previously borne by New York Life.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
91
<PAGE>
- --------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (96.7%)+
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Aerospace/Defense (3.0%)
Litton Industries
Inc............. 85,700 $ 3,160,188
Lockheed Martin
Corp............ 61,200 3,863,250
Loral Corp. ..... 82,000 4,243,500
-----------
11,266,938
-----------
Auto & Auto Services (4.0%)
Allen Group Inc.
(The)........... 168,500 4,991,813
General Motors
Corp............ 72,000 3,375,000
Goodyear Tire &
Rubber Co....... 102,200 4,215,750
Superior
Industries
International,
Inc............. 80,700 2,511,787
-----------
15,094,350
-----------
Banks (5.5%)
Chase Manhattan
Corp. (The)..... 75,000 3,525,000
First Security
Corp. .......... 159,600 4,468,800
Mellon Bank
Corp. .......... 73,000 3,038,625
Midlantic Corp. . 79,500 3,180,000
Morgan, J.P. &
Co., Inc. ...... 47,600 3,337,950
Signet Banking
Corp............ 146,900 3,213,438
-----------
20,763,813
-----------
Building Products (0.8%)
USG Corp. (a).... 131,200 3,116,000
-----------
Chemicals (5.4%)
Albemarle Corp... 234,000 3,656,250
Engelhard Corp... 18,600 797,475
Grace (W.R.) &
Co.............. 57,000 3,498,375
IMC Global Inc... 109,600 5,932,100
Sealed Air Corp.
(a)............. 150,000 6,600,000
-----------
20,484,200
-----------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Commercial
Services (1.1%)
Service Corp.
International... 138,000 $ 4,364,250
------------
Communications (2.4%)
ADC
Telecommunications
Inc. ........... 133,300 4,765,475
AT&T Corp. ...... 70,000 3,718,750
Mobilemedia
Corp. .......... 30,000 615,000
------------
9,099,225
------------
Computer & Business
Equipment (6.3%)
FIserv Inc....... 100,000 2,812,500
Intel Corp....... 80,600 5,102,988
Microcom Inc..... 10,000 150,000
Microsoft Corp. . 55,000 4,970,625
Novell, Inc. (a). 182,000 3,628,625
Varian Assoc.,
Inc. ........... 135,300 7,475,325
------------
24,140,063
------------
Conglomerates (2.3%)
Eastman Kodak
Co.............. 57,000 3,455,625
ITT Corp. ....... 45,800 5,381,500
------------
8,837,125
------------
Drugs (6.4%)
American Home
Products Corp.
................ 49,500 3,830,063
Elan Corp. Plc
ADR (a)(c) 81,000 3,300,750
Pfizer Inc. ..... 29,400 2,715,825
Scherer (R.P.)
Corp. (a)....... 86,000 3,633,500
Schering-Plough.. 96,000 4,236,000
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
92
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Drugs (Continued)
Merck & Co.,
Inc. ........... 69,200 $ 3,390,800
Warner-Lambert
Co. ............ 38,700 3,342,712
------------
24,449,650
------------
Electrical (6.6%)
Avnet, Inc. ..... 92,800 4,489,200
Emerson Electric
Co. ............ 70,000 5,005,000
General Electric
Co. ............ 119,000 6,708,625
Honeywell Inc. .. 105,000 4,528,125
Mark IV
Industries,
Inc. ........... 213,103 4,581,714
------------
25,312,664
------------
Electronics (3.6%)
Hewlett-Packard
Co. ............ 48,700 3,628,150
Motorola, Inc. .. 85,600 5,745,900
Sensormatic
Electronics
Corp. .......... 126,000 4,473,000
------------
13,847,050
------------
Finance (3.0%)
Chelsea GCA
Realty, Inc. ... 96,300 2,600,100
Federal National
Mortgage
Association..... 40,000 3,775,000
First Financial
Management
Corp. .......... 57,400 4,907,700
------------
11,282,800
------------
Foods (1.8%)
ConAgra, Inc. ... 114,100 3,979,238
General Mills,
Inc. ........... 57,000 2,928,375
------------
6,907,613
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Hospital & Medical
Services (4.3%)
Allergan, Inc. .. 92,400 $ 2,506,350
Columbia/HCA
Healthcare
Corp. .......... 102,800 4,446,100
Coram Healthcare
Corp. .......... 186,500 2,634,312
HEALTHSOUTH
Corp. .......... 181,400 3,151,825
Sybron
International
Corp. (a)....... 93,100 3,712,362
------------
16,450,949
------------
Household Products (1.9%)
Dial Corp. (The). 184,600 4,568,850
Sunbeam-Oster
Inc. ........... 187,700 2,604,338
------------
7,173,188
------------
Insurance--Property &
Casualty (0.9%)
American
International
Group, Inc. .... 30,000 3,420,000
------------
Learning &
Educational (0.8%)
Kinder Care
Learning
Centers, Inc.
(a)............. 227,000 3,064,500
------------
Leisure/Amusement (1.0%)
Mattel Inc. ..... 147,900 3,845,400
------------
Lodging & Restaurants (2.2%)
Marriott
International,
Inc. 125,000 4,484,375
McDonald's
Corp. .......... 100,800 3,943,800
------------
8,428,175
------------
Machinery/Capital
Goods (2.1%)
Donaldson Co.,
Inc. ........... 188,100 4,914,113
Tenneco, Inc. ... 70,600 3,247,600
------------
8,161,713
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
93
<PAGE>
- --------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Manufacturing (2.0%)
AlliedSignal
Inc. ........... 96,000 $ 4,272,000
Furon Co. ....... 158,400 3,484,800
------------
7,756,800
------------
Media & Information
Services (3.8%)
News Corp. Ltd.
ADR (c)......... 127,800 2,891,475
Tele-
Communications
Inc. ........... 175,000 4,101,563
Time Warner,
Inc. ........... 81,000 3,331,125
Viacom Inc. Class
B (a)........... 92,300 4,280,412
------------
14,604,575
------------
Metals (1.7%)
Allegheny Ludlum
Corp. .......... 147,300 2,909,175
Aluminum Co.
of America...... 68,000 3,408,500
------------
6,317,675
------------
Oil & Energy
Services (10.5%)
Aquila Gas
Pipeline Corp. . 107,800 956,725
Mobil Corp. ..... 55,000 5,280,000
NGC Corp. ....... 128,598 1,350,279
Quaker State
Corp. .......... 295,900 4,438,500
Questar Corp. ... 100,000 2,875,000
Royal Dutch
Petroleum Co. .. 29,100 3,546,563
Schlumberger
Ltd. ........... 60,750 3,774,094
Smith
International,
Inc. (a)........ 180,500 3,023,375
Triton Energy
Corp. (a)....... 100,000 4,637,500
Unocal Corp. .... 131,500 3,632,687
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Oil & Energy
Services (Continued)
USX-Delhi Group.. 125,700 $ 1,445,550
Western Atlas
Inc. ........... 91,500 4,060,312
XCL Ltd. (a)..... 1,316,800 1,152,200
------------
40,172,785
------------
Paper & Forest
Products (2.4%)
Mead Corp. ...... 74,500 4,423,437
Willamette
Industries, Inc. 82,500 4,578,750
------------
9,002,187
------------
Pollution Control (1.3%)
Browning-Ferris
Industries
Inc. ........... 138,500 5,003,312
------------
Real Estate
(0.9%)
Liberty Property
Trust........... 166,500 3,267,562
------------
Retail Trade &
Merchandising (3.2%)
Global DirectMail
Corp. .......... 100,000 1,975,000
Kmart Corp. ..... 253,000 3,700,125
Smart & Final,
Inc. ........... 163,000 2,791,375
Vons Companies
Inc. (a)........ 178,200 3,586,275
------------
12,052,775
------------
Transportation (2.5%)
Rollins Truck
Leasing Corp. .. 380,500 4,090,375
Southern Pacific
Rail Corp. ..... 234,600 3,694,950
UNC Inc. (a)..... 300,000 1,612,500
------------
9,397,825
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
94
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Utilities--Electric (0.9%)
CMS Energy
Corp. .......... 135,000 $ 3,324,375
------------
Utilities--Telephone (2.1%)
Ameritech Corp... 80,000 3,520,000
Paging Network,
Inc. ........... 30,000 1,027,500
WorldCom Inc..... 127,300 3,437,100
------------
7,984,600
------------
Total Common
Stocks (Cost
$321,430,398)... 368,394,137
------------
SHORT-TERM
INVESTMENTS (3.5%)
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
Commercial Paper (3.5%)
Associates Corp.
of North America
5.92%,
due on demand
(b)............. $8,260,000 8,260,000
Ford Motor Credit
Co. 5.938%, due
7/5/95.......... 4,893,000 4,893,000
------------
Total Short-Term
Investments
(Cost
$13,153,000).... 13,153,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
Total
Investments
(Cost
$334,583,398) (d) 100.2% $381,547,137 (e)
Liabilities In
Excess of
Cash and Other
Assets (0.2) (586,678)
---------- ------------
Net Assets...... 100.0% $380,960,459
========== ============
</TABLE>
- --------
(a) Non-income producing securities.
(b) Adjustable Rate. Rate shown is the rate in effect at June 30, 1995.
(c) ADR--American Depository Receipt.
(d) The cost for Federal income tax purposes is $334,617,999.
(e) At June 30, 1995 net unrealized appreciation was $46,929,138, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess
of market value over cost of $56,843,418 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $9,914,280.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
95
<PAGE>
- --------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2)
(identified cost $334,583,398).................................. $381,547,137
Cash............................................................. 1,318
Receivables:
Investment securities sold....................................... 3,096,319
Dividends and interest........................................... 553,480
Fund shares sold................................................. 110,086
Other assets..................................................... 2,124
------------
Total assets................................................... 385,310,464
------------
LIABILITIES:
Payables:
Investment securities purchased.................................. 2,819,966
NYLIAC........................................................... 907,949
Adviser.......................................................... 227,767
Fund shares redeemed............................................. 197,760
Administrator.................................................... 30,889
Recordkeeping.................................................... 5,459
Directors........................................................ 2,182
Accrued expenses................................................. 158,033
------------
Total liabilities.............................................. 4,350,005
------------
Net assets applicable to
outstanding shares.............................................. $380,960,459
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 100 million shares
authorized...................................................... $ 225,254
Additional paid-in capital....................................... 313,835,392
Accumulated undistributed net investment income.................. 2,873,446
Accumulated undistributed net
realized gain on investments.................................... 17,062,628
Net unrealized appreciation
on investments.................................................. 46,963,739
------------
Net assets applicable to
outstanding shares.............................................. $380,960,459
============
Shares of capital stock outstanding.............................. 22,525,413
============
Net asset value per share outstanding............................ $ 16.91
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)..................................................... $ 3,235,605
Interest.......................................................... 771,558
-----------
Total income.................................................... 4,007,163
-----------
Expenses: (Note 2)
Recordkeeping (Note 3)............................................ 869,187
Advisory (Note 3)................................................. 438,091
Administration (Note 3)........................................... 350,473
Shareholder communication......................................... 90,125
Auditing.......................................................... 29,320
Legal............................................................. 16,618
Directors......................................................... 14,689
Miscellaneous..................................................... 6,203
-----------
Total expenses
before reimbursement........................................... 1,814,706
Expense reimbursement from Administrator (Note 3)................. (728,240)
-----------
Net expenses.................................................... 1,086,466
-----------
Net investment income............................................. 2,920,697
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments.................................. 17,058,833
Net change in unrealized appreciation
on investments................................................... 30,043,205
-----------
Net realized and unrealized gain
on investments................................................... 47,102,038
-----------
Net increase in net assets resulting
from operations.................................................. $50,022,735
===========
</TABLE>
- --------
(a) Dividends recorded net of foreign withholding taxes in the amount of
$20,774.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
96
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
GROWTH EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income............................. $ 2,920,697 $ 4,561,447
Net realized gain on investments.................. 17,058,833 19,138,882
Net change in unrealized apppreciation on invest-
ments............................................ 30,043,205 (19,784,672)
------------ ------------
Net increase in net assets resulting from opera-
tions............................................ 50,022,735 3,915,657
------------ ------------
Dividends and distributions to shareholders:
From net investment income........................ (50,000) (4,567,801)
From net realized gain on investments............. -- (19,120,138)
------------ ------------
Total dividends and distributions to sharehold-
ers............................................. (50,000) (23,687,939)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 17,173,170 32,631,494
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions... 50,000 23,687,939
------------ ------------
17,223,170 56,319,433
Cost of shares redeemed........................... (16,396,381) (25,581,882)
------------ ------------
Increase in net assets derived from capital share
transactions.................................... 826,789 30,737,551
------------ ------------
Net increase in net assets....................... 50,799,524 10,965,269
NET ASSETS:
Beginning of period............................... 330,160,935 319,195,666
------------ ------------
End of period..................................... $380,960,459 $330,160,935
============ ============
Accumulated undistributed net investment income... $ 2,873,446 $ 2,749
============ ============
</TABLE>
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
JUNE 30, --------------------------------------------------
1995* 1994 1993 1992 1991 1990
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at be-
ginning of period...... $ 14.69 $ 15.64 $ 15.53 $ 15.57 $ 13.00 $ 14.22
-------- -------- -------- -------- -------- --------
Net investment income... 0.13 0.22 0.24 0.22 0.27 0.32
Net realized and
unrealized gain (loss)
on investments......... 2.09 (0.03) 1.88 1.72 4.10 (1.20)
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 2.22 0.19 2.12 1.94 4.37 (0.88)
-------- -------- -------- -------- -------- --------
Less dividends and dis-
tributions:
From net investment in-
come.................. (0.00)(a) (0.22) (0.25) (0.22) (0.29) (0.33)
From net realized gain
on investments........ -- (0.92) (1.76) (1.76) (1.51) (0.01)
-------- -------- -------- -------- -------- --------
Total dividends and dis-
tributions............. (0.00)(a) (1.14) (2.01) (1.98) (1.80) (0.34)
-------- -------- -------- -------- -------- --------
Net asset value at end
of period.............. $ 16.91 $ 14.69 $ 15.64 $ 15.53 $ 15.57 $ 13.00
======== ======== ======== ======== ======== ========
Total investment return
(b).................... 15.16% 1.20% 13.71% 12.42% 33.62% (6.19%)
Ratios (to average net
assets)/Supplemental
Data:
Net investment income.. 1.67%+ 1.41% 1.42% 1.50% 1.78% 2.33%
Net expenses........... 0.62%+ 0.62%# 0.27%# 0.27% 0.29% 0.29%
Expenses (before reim-
bursement)............ 1.04%+ 0.65%# 0.27%# 0.27% 0.29% 0.29%
Portfolio turnover rate. 58% 108% 121% 82% 100% 114%
Net assets at end of pe-
riod (in 000's)........ $380,960 $330,161 $319,196 $272,834 $204,147 $152,824
</TABLE>
- --------
(a) Less than one cent per share.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
# At the MFA Series Fund, Inc.'s shareholders meeting on December 14, 1993,
the shareholders voted to have the Portfolio assume certain administrative
and operating expenses of the Fund previously borne by New York Life.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
97
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (80.2%)+
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Air Transportation (0.3%)
AMR Corp. (a)..... 1,180 $ 88,057
Delta Air Lines,
Inc.............. 786 57,967
Pittston Services
Group............ 643 15,433
Southwest Airlines
Co............... 2,247 53,647
USAir Group, Inc.
(a).............. 913 10,614
-----------
225,718
-----------
Aircraft (1.1%)
Boeing Company
(The)............ 5,341 334,480
Lockheed Martin
Corp............. 2,726 172,079
McDonnell Douglas
Corp............. 1,911 146,669
Northrop Grumman
Corp. ........... 781 40,710
United
Technologies
Corp............. 1,951 152,422
-----------
846,360
-----------
Aluminum (0.4%)
Alcan Aluminum
Limited.......... 3,519 106,450
Aluminum Co. of
America.......... 2,838 142,255
Reynolds Metals
Company.......... 920 47,610
-----------
296,315
-----------
Apparel (0.4%)
Brown Group, Inc.. 269 6,120
Fruit Of The Loom
Inc. Class A (a). 1,400 29,575
Liz Claiborne,
Inc.............. 1,196 25,415
Nike, Inc......... 1,178 98,952
Reebok
International
Ltd.............. 1,311 44,574
Russell Corp...... 641 18,429
Stride Rite Corp.. 787 8,165
VF Corp........... 1,032 55,470
-----------
286,700
-----------
</TABLE>
- --------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Banks (4.7%)
Banc One Corp..... 6,335 $ 204,304
Bank of Boston
Corp............. 1,676 62,850
Bank of New York
Company, Inc..... 3,900 157,463
BankAmerica Corp.. 5,807 305,593
Bankers Trust
New York Corp. .. 1,198 74,276
Barnett Banks,
Inc.............. 1,562 80,053
Boatmen's
Bancshares, Inc.. 1,177 41,489
Chase Manhattan
Corp. (The)...... 2,845 133,715
Chemical Banking
Corp............. 3,917 185,078
Citicorp.......... 6,078 351,764
CoreStates
Financial Corp... 2,272 79,236
First Chicago
Corp............. 1,419 84,962
First Fidelity
Bancorp.......... 1,285 75,815
First Interstate
Bancorp.......... 1,290 103,523
First Union Corp.. 2,706 122,447
Fleet Financial
Group, Inc....... 2,109 78,297
KeyCorp........... 3,821 119,884
MBNA Corp. ....... 2,300 77,625
Mellon Bank Corp.. 2,215 92,199
Morgan (J.P.) &
Company, Inc..... 3,005 210,726
NationsBank Corp.. 4,261 228,496
NBD Bancorp, Inc.. 2,489 79,648
Norwest Corp...... 5,002 143,807
PNC Bank Corp..... 3,649 96,242
Shawmut National
Corp............. 1,879 59,893
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
98
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Banks (Continued)
Suntrust Banks,
Inc.............. 1,949 $ 113,529
U.S. Bancorp
(Portland, OR)... 1,569 37,754
Wachovia Corp..... 2,696 96,382
Wells Fargo &
Company.......... 801 144,380
-----------
3,641,430
-----------
Beverages (3.0%)
Anheuser-Busch
Companies, Inc... 4,091 232,676
Brown-Forman
Corp. ........... 1,075 35,878
Coca-Cola
Company (The).... 20,050 1,278,188
Coors (Adolph)
Co............... 635 10,398
PepsiCo, Inc...... 12,301 561,233
Seagram Company
Ltd.............. 5,759 199,405
-----------
2,317,778
-----------
Broadcasting (1.0%)
Capital
Cities/ABC, Inc.. 2,346 246,037
CBS Inc........... 585 39,195
Comcast Corp.
Class A.......... 3,744 69,498
Tele-
Communications,
Inc. (a)......... 8,122 190,359
Viacom Inc. Class
B (a)............ 4,775 221,441
-----------
766,530
-----------
Business Equipment &
Services (1.3%)
Block (H & R),
Inc.............. 1,692 69,584
Browning Ferris
Industries Inc... 3,065 110,723
Ceridian Corp.
(a).............. 666 24,559
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Business Equipment &
Services (Continued)
Deluxe Corp....... 1,304 $ 43,195
Donnelley (R.R.) &
Sons Company..... 2,377 85,572
Dun & Bradstreet
Corp. (The)...... 2,632 138,180
Federal Express
Corp. (a)........ 902 54,796
Harland (John H.)
Co. (The)........ 516 11,804
Interpublic Group
of
Cos., Inc. ...... 1,179 44,212
Moore Corp. Ltd... 1,556 34,426
National Service
Industries, Inc.. 786 22,696
Ogden Corp. ...... 665 14,547
Pitney Bowes
Inc. ............ 2,480 95,170
Ryder System,
Inc. ............ 1,183 28,244
Safety-Kleen
Corp. ........... 910 14,674
Service Corp.
International.... 1,308 41,365
WMX Technologies,
Inc. ............ 7,571 214,827
-----------
1,048,574
-----------
Capital Equipment (0.9%)
Caterpillar Inc... 3,149 202,323
Cincinnati
Milacron Inc..... 519 14,013
Cummins Engine
Company, Inc. ... 650 28,356
Fluor Corp. ...... 1,301 67,652
Foster Wheeler
Corp. ........... 526 18,542
General Signal
Corp. ........... 773 30,727
Giddings & Lewis
Inc. ............ 522 9,331
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
99
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Capital Equipment
(Continued)
Harnischfeger
Industries,
Inc. ............ 395 $ 13,677
Illinois Tool
Works Inc........ 1,812 99,660
Ingersoll-Rand
Company.......... 1,687 64,528
Paccar Inc. ...... 583 27,255
Parker Hannifin
Corp. ........... 1,170 42,412
Snap-On, Inc...... 664 25,730
Timken Company
(The)............ 511 23,570
Trinova Corp...... 404 14,140
Zurn Industries,
Inc. ............ 238 4,760
-----------
686,676
-----------
Chemicals--
Petroleum (2.0%)
Dow Chemical
Company (The).... 4,304 309,350
Du Pont (E.I.) De
Nemours &
Company.......... 10,975 754,531
First Mississippi
Corp. ........... 278 9,487
Goodrich (B.F.)
Company.......... 395 21,182
Grace (W.R.) &
Co. ............. 1,433 87,950
Hercules Inc. .... 1,977 96,379
Monsanto Company.. 1,831 165,019
Rohm & Haas
Company.......... 1,041 57,125
Union Carbide
Corp. ........... 2,346 78,297
-----------
1,579,320
-----------
Chemicals--
Specialty (0.8%)
Air Products &
Chemicals, Inc. . 1,714 95,555
Avery Dennison
Corp. ........... 910 36,400
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Chemicals--
Specialty (Continued)
Eastman Chemical
Co. ............. 1,302 $ 77,469
Ecolab, Inc....... 1,027 25,162
Engelhard Corp.... 1,500 64,313
Great Lakes
Chemical Corp. .. 1,068 64,347
Morton
International,
Inc.............. 2,246 65,695
Nalco Chemical
Company.......... 1,061 38,594
Pall Corp......... 1,821 40,517
Praxair, Inc. .... 2,093 52,325
Sigma-Aldrich
Corp............. 786 38,612
-----------
598,989
-----------
Communications
Equipment (0.5%)
Andrew Corp. (a).. 601 34,783
DSC Communications
Corp. (a)........ 1,759 81,793
General Dynamics
Corp............. 1,027 45,573
Harris Corp. ..... 640 33,040
M/A-Com, Inc. (a). 392 4,606
Northern Telecom
Limited.......... 3,916 142,934
Scientific-
Atlanta, Inc..... 1,164 25,608
-----------
368,337
-----------
Computers--Main &
Mini (2.7%)
Amdahl Corp. (a).. 1,816 20,203
Cisco Systems,
Inc. (a)......... 4,051 204,829
Cray Research,
Inc. (a)......... 396 9,652
Data General Corp.
(a).............. 526 5,063
Digital Equipment
Corp. (a) 2,196 89,487
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
100
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Computers--Main &
Mini (Continued)
Hewlett-Packard
Company.......... 7,852 $ 584,974
Honeywell Inc..... 1,989 85,775
International
Business Machines
Corp............. 9,102 873,792
Tandem Computers
Inc. (a) 1,814 29,251
Unisys Corp. (a).. 2,609 28,373
Xerox Corp........ 1,671 195,925
-----------
2,127,324
-----------
Computers--Micro (0.4%)
Apple Computer
Inc. ............ 1,829 84,934
Compaq Computer
Corp. (a)........ 3,916 177,688
Sun Microsystems
Inc. (a) 1,468 71,198
-----------
333,820
-----------
Computers--
Peripherals (2.2%)
Autodesk, Inc..... 778 33,454
Cabletron Systems,
Inc. (a) 1,200 63,900
Computer
Associates
International
Inc.............. 2,502 169,511
First Data Corp... 1,500 85,313
Intergraph Corp.
(a).............. 674 7,498
Lotus Development
Corp. (a)........ 753 48,004
Microsoft Corp.
(a).............. 8,993 812,742
Novell Inc. (a)... 5,721 114,062
Oracle Corp. (a).. 6,666 257,474
Silicon Graphics,
Inc. (a)......... 3,000 119,625
-----------
1,711,583
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Construction
Materials (0.3%)
Black & Decker
Corp............. 1,305 $ 40,292
Crane Co.......... 509 18,451
PPG Industries
Inc.............. 3,283 141,169
Sherwin-Williams
Company.......... 1,316 46,883
Stanley Works
(The)............ 670 25,376
-----------
272,171
-----------
Consumer
Electronics (0.0%) (b)
Zenith Electronics
Corp. (a) 633 4,668
-----------
Consumer Services (0.1%)
CUC International
(a).............. 2,600 109,200
-----------
Containers (0.1%)
Ball Corp......... 505 17,612
Bemis Company,
Inc.............. 789 20,514
Crown Cork & Seal
Company, Inc.
(a).............. 1,422 71,278
-----------
109,404
-----------
Cosmetics &
Toiletries (0.6%)
Alberto-Culver
Company.......... 403 12,191
Avon Products,
Inc.............. 1,068 71,556
Gillette Company.. 6,816 304,164
International
Flavors &
Fragrances,
Inc. ............ 1,699 84,525
-----------
472,436
-----------
Defense (0.5%)
EG & G, Inc....... 903 15,125
Loral Corp. ...... 1,290 66,757
Raytheon Company.. 2,297 178,305
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
101
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Defense (Continued)
Rockwell
International
Corp............. 3,403 $ 155,687
-----------
415,874
-----------
Electrical
Equipment (2.7%)
Cooper Industries,
Inc. ............ 1,817 71,772
Dover Corp........ 908 66,057
Emerson Electric
Co............... 3,520 251,680
General Electric
Company.......... 26,636 1,501,605
Grainger (W.W.),
Inc.............. 790 46,412
Johnson Controls,
Inc.............. 640 36,160
Tyco International
Ltd.............. 1,174 63,396
Westinghouse
Electric Corp.... 5,477 80,101
-----------
2,117,183
-----------
Electronic
Components (2.9%)
Advanced Micro
Devices, Inc.
(a).............. 1,433 52,125
AMP Inc. ......... 3,172 134,017
Applied Materials,
Inc. (a)......... 1,900 164,588
Intel Corp........ 13,244 838,511
Micron Technology
Inc. ............ 3,200 175,600
Motorola, Inc..... 8,332 559,286
National
Semiconductor
Corp. (a)........ 1,920 53,280
Raychem Corp. .... 648 24,867
Teledyne, Inc. ... 904 22,148
Texas Instruments,
Inc. ............ 1,420 190,102
Thomas & Betts
Corp............. 275 18,803
-----------
2,233,327
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Electronic
Instruments (0.1%)
Perkin-Elmer Corp.
(The)............ 666 $ 23,643
Tektronix, Inc.... 510 25,118
-----------
48,761
-----------
Environmental
Control (0.1%)
Laidlaw, Inc.
Class B.......... 4,700 45,238
-----------
Farm Machinery (0.2%)
Deere & Company... 1,301 111,398
Navistar
International
Corp. (a)........ 1,188 17,969
Varity Corp. (a).. 640 28,160
-----------
157,527
-----------
Finance Companies (0.5%)
Beneficial Corp... 792 34,848
Household
International
Inc. ............ 1,447 71,627
National City
Corp. ........... 2,300 67,562
Travelers Group
Inc. ............ 5,043 220,631
-----------
394,668
-----------
Food & Related (2.4%)
Archer Daniels
Midland Company.. 7,972 148,479
Campbell Soup
Company.......... 3,916 191,884
ConAgra, Inc...... 3,913 136,466
CPC International,
Inc.............. 2,342 144,619
Fleming Companies,
Inc.............. 531 14,072
General Mills,
Inc.............. 2,491 127,975
Heinz (H.J.)
Company.......... 3,920 173,950
Hershey Foods
Corp. ........... 1,321 72,985
Kellogg Company... 3,452 246,386
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
102
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Food & Related
(Continued)
Pioneer Hi-Bred
International,
Inc.............. 1,353 $ 56,826
Quaker Oats
Company.......... 2,122 69,761
Ralston Purina
Group............ 1,577 80,427
Sara Lee Corp..... 7,455 212,467
SuperValu Inc..... 1,068 31,105
Sysco Corp........ 2,880 84,960
Wrigley (Wm.) Jr.
Company.......... 1,825 84,634
-----------
1,876,996
-----------
Forest & Paper
Products (1.5%)
Boise Cascade
Corp............. 633 25,636
Champion
International
Corp............. 1,434 74,747
Federal Paper
Board Company,
Inc. ............ 647 22,888
Georgia-Pacific
Corp............. 1,423 123,445
International
Paper Company.... 1,946 166,869
James River Corp.
of Virginia...... 1,299 35,885
Kimberly-Clark
Corp............. 2,492 149,209
Louisiana-Pacific
Corp. ........... 1,700 44,625
Mead Corp. ....... 914 54,269
Potlatch Corp. ... 405 16,909
Scott Paper
Company.......... 2,352 116,424
Stone Container
Corp. (a)........ 1,399 29,729
Temple-Inland
Inc.............. 904 43,053
Union Camp Corp. . 1,048 60,653
Westvaco Corp. ... 1,039 45,976
Weyerhaeuser
Company.......... 3,251 153,203
-----------
1,163,520
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Furniture &
Furnishings (0.2%)
Armstrong World
Industries, Inc.. 532 $ 26,666
Bassett Furniture
Industries, Inc.. 271 7,588
Masco Corp. ...... 2,457 66,339
Newell Co......... 2,482 60,809
Owens-Corning
Fiberglas Corp.
(a).............. 665 24,522
-----------
185,924
-----------
Gold & Precious
Metals (0.2%)
Echo Bay Mines
Ltd. ............ 1,709 15,381
Homestake Mining
Company.......... 2,103 34,699
Placer Dome Inc... 3,662 95,670
-----------
145,750
-----------
Health Care--
Drugs (3.9%)
Abbott
Laboratories..... 12,720 515,160
Allergan Inc...... 1,032 27,993
Alza Corp. (a).... 1,291 30,177
Amgen Inc. (a).... 2,094 168,436
Baxter
International
Inc. ............ 4,324 157,286
Lilly (Eli) &
Company.......... 4,563 358,195
Merck & Co.,
Inc. ............ 19,584 959,616
Millipore Corp.... 403 27,202
Pfizer Inc. ...... 4,758 439,520
Schering-Plough
Corp............. 6,016 265,456
Upjohn Company.... 2,732 103,475
-----------
3,052,516
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
103
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Health Care--
General (2.5%)
American Home
Products Corp.... 4,723 $ 365,442
Bausch & Lomb
Inc. ............ 915 37,973
Becton, Dickinson
& Company........ 1,076 62,677
Biomet Inc. (a)... 1,820 28,210
Bristol-Myers
Squibb Company... 7,969 542,888
Johnson & Johnson. 9,967 674,018
Mallinckrodt
Group, Inc....... 1,185 42,068
St. Jude Medical,
Inc.............. 676 33,884
Warner-Lambert
Company 2,094 180,869
-----------
1,968,029
-----------
Homebuilders, Mobile
Homes (0.1%)
Centex Corp. ..... 513 14,492
Fleetwood
Enterprises,
Inc. ............ 672 13,272
Kaufman & Broad
Home Corp........ 519 7,526
Pulte Corp. ...... 400 11,200
Skyline Corp. .... 134 2,429
-----------
48,919
-----------
Hospital Supply &
Management (0.8%)
Bard (C.R.),
Inc. ............ 793 23,790
Beverly
Enterprises,
Inc. (a)......... 1,292 15,989
Columbia/HCA
Healthcare Corp.. 8,005 346,216
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Hospital Supply &
Management (Continued)
Community
Psychiatric
Centers (a)...... 664 $ 7,470
Manor Care, Inc. . 1,018 29,649
Medtronic, Inc.... 1,826 140,830
Shared Medical
Systems Corp..... 386 15,488
Tenet Healthcare
Corp. (a)........ 2,608 37,490
United States
Surgical Corp.... 906 18,913
-----------
635,835
-----------
Hotels & Gaming (0.3%)
Bally
Entertainment
Corp. (a)........ 774 9,481
Hilton Hotels
Corp............. 779 54,725
Marriott
International,
Inc. 1,914 68,665
Promus Companies
Inc. (The)....... 1,564 60,996
-----------
193,867
-----------
Household--General
Products (2.0%)
American Greetings
Corp............. 1,162 34,134
Clorox Company
(The)............ 798 52,070
Colgate-Palmolive
Company.......... 2,267 165,774
Corning Inc. ..... 3,257 106,667
Jostens, Inc. .... 671 14,259
Premark
International,
Inc. 1,028 53,327
Procter & Gamble
Company (The).... 10,689 768,272
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
104
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Household--General
Products (Continued)
Rubbermaid, Inc... 2,495 $ 69,236
Unilever, N.V..... 2,489 323,881
-----------
1,587,620
-----------
Household--Major
Appliances (0.1%)
Briggs & Stratton
Corp............. 522 18,009
Maytag Corp....... 1,694 27,104
Whirlpool Corp.... 1,157 63,635
-----------
108,748
-----------
Insurance--Life (0.8%)
American General
Corp............. 3,283 110,801
Jefferson-Pilot
Corp............. 785 42,979
Loews Corp. ...... 1,100 133,100
Providian Corp. .. 1,553 56,296
Torchmark Corp.... 1,173 44,281
United Healthcare
Corp............. 2,595 107,368
U.S. Healthcare,
Inc.............. 2,476 75,827
UNUM Corp. ....... 1,130 52,969
USLIFE Corp....... 387 15,577
-----------
639,198
-----------
Insurance--Property &
Casualty (1.7%)
Aetna Life &
Casualty Company. 1,708 107,390
American
International
Group, Inc. ..... 4,967 566,238
Chubb Corp. (The). 1,318 105,605
CIGNA Corp. ...... 1,171 90,899
General Re Corp. . 1,305 174,707
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Insurance--Property &
Casualty (Continued)
Lincoln National
Corp. ........... 1,452 $ 63,525
SAFECO Corp....... 1,026 58,931
St. Paul
Companies,
Inc. (The)....... 1,295 63,779
Transamerica
Corp. ........... 1,077 62,735
USF&G Corp. ...... 1,311 21,304
-----------
1,315,113
-----------
Leisure Time
Industry (0.8%)
Brunswick Corp. .. 1,442 24,514
Handleman Co. .... 520 5,005
Hasbro Inc. ...... 1,318 41,847
Mattel, Inc. ..... 3,478 90,428
Outboard Marine
Corp............. 276 5,416
Walt Disney
Company.......... 8,542 475,149
-----------
642,359
-----------
Medical Supplies (0.1%)
Boston Scientific
Corp. (a)........ 3,300 105,188
-----------
Mining (0.5%)
Asarco, Inc....... 644 19,642
Barrick Gold
Corp. ........... 5,495 138,749
Cyprus Amax
Minerals Co...... 1,486 42,351
INCO Limited...... 1,813 51,217
Nacco Industries,
Inc. ............ 128 7,664
Newmont Mining
Corp. ........... 1,303 54,563
Phelps Dodge
Corp. ........... 1,065 62,835
Santa Fe Pacific
Gold Corp........ 1,719 20,843
-----------
397,864
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
105
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Motion Pictures (0.0%) (b)
King World
Productions, Inc.
(a).............. 532 $ 21,546
-----------
Motor Vehicle Parts (0.3%)
Dana Corp. ....... 1,558 44,598
Eaton Corp. ...... 1,159 67,367
Echlin Inc........ 912 31,692
Genuine Parts
Company.......... 1,948 73,780
SPX Corp. ........ 241 2,741
-----------
220,178
-----------
Motor Vehicles (1.6%)
Chrysler Corp..... 5,478 262,259
Ford Motor
Company.......... 15,618 464,636
General Motors
Corp............. 11,653 546,234
-----------
1,273,129
-----------
Multiple Industries (1.5%)
Alco Standard
Corp............. 790 63,101
AlliedSignal,
Inc. ............ 4,434 197,313
Dial Corp. (The).. 1,449 35,863
FMC Corp. (a)..... 528 35,508
Harcourt General,
Inc.............. 1,186 50,109
ITT Corp.......... 1,828 214,790
Minnesota Mining &
Manufacturing
Company.......... 6,581 376,762
Textron Inc. ..... 1,420 82,537
TRW Inc........... 1,032 82,431
Whitman Corp. .... 1,591 30,826
-----------
1,169,240
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Non-Residential
Construction (0.0%) (b)
Morrison Knudsen
Corp. ........... 513 $ 3,463
-----------
Petroleum--
Domestic (2.3%)
Amerada Hess
Corp............. 1,435 70,136
Amoco Corp........ 7,718 514,212
Ashland Inc. ..... 918 32,245
Atlantic Richfield
Company.......... 2,488 273,058
Burlington
Resources, Inc. . 2,023 74,598
Coastal Corp. .... 1,586 48,175
Kerr-McGee Corp... 787 42,203
Louisiana Land
& Exploration
Company (The).... 512 20,416
Noram Energy
Corp. ........... 1,942 12,623
Occidental
Petroleum Corp... 4,827 110,417
Oryx Energy
Company (a)...... 1,548 21,285
Pennzoil Company.. 751 35,391
Phillips Petroleum
Company.......... 4,049 135,135
Santa Fe Energy
Resources, Inc.
(a).............. 1,425 13,537
Sun Company, Inc.. 1,692 46,318
Tenneco, Inc...... 2,318 106,628
Unocal Corp....... 3,787 104,616
USX--Marathon
Group............ 4,442 87,730
-----------
1,748,723
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
106
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Petroleum--
International (4.8%)
Chevron Corp. .... 10,188 $ 475,016
Exxon Corp. ...... 19,332 1,365,323
Mobil Corp........ 6,352 609,792
Royal Dutch
Petroleum
Company.......... 8,357 1,018,509
Texaco Inc........ 4,042 265,256
-----------
3,733,896
-----------
Petroleum--
Services (0.6%)
Baker Hughes Inc.. 2,210 45,305
Dresser
Industries, Inc.. 2,783 61,922
Halliburton
Company.......... 1,816 64,922
Helmerich & Payne,
Inc.............. 392 11,564
McDermott
International,
Inc. ............ 794 19,155
Rowan Companies,
Inc. (a) 1,306 10,611
Schlumberger
Limited.......... 3,791 235,516
Western Atlas,
Inc. (a)......... 768 34,080
-----------
483,075
-----------
Photographic
Equipment (0.5%)
Eastman Kodak
Company.......... 5,210 315,856
Polaroid Corp. ... 775 31,581
-----------
347,437
-----------
Publishing (0.9%)
Dow Jones &
Company, Inc. ... 1,571 57,931
Gannett Company,
Inc. ............ 2,532 137,361
Knight-Ridder
Inc. ............ 799 45,443
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Publishing (Continued)
McGraw-Hill,
Inc. ............ 784 $ 59,486
Meredith Corp..... 518 13,144
New York Times
Company (The).... 1,638 38,493
Time Warner,
Inc. ............ 5,868 241,322
Times Mirror
Company.......... 1,975 47,153
Tribune Company... 1,038 63,707
-----------
704,040
-----------
Railroad (0.9%)
Burlington
Northern Inc..... 1,422 90,119
Conrail, Inc. .... 1,193 66,361
CSX Corp.......... 1,585 119,073
Norfolk Southern
Corp............. 2,105 141,824
Santa Fe Pacific
Corp............. 3,366 85,833
Union Pacific
Corp............. 3,144 174,099
-----------
677,309
-----------
Restaurants (0.6%)
Darden
Restaurants, Inc.
(a) 2,491 27,090
Luby's Cafeterias,
Inc.............. 398 8,010
McDonald's Corp. . 10,910 426,854
Ryan's Family
Steak Houses,
Inc. (a)......... 796 6,268
Shoney's, Inc.
(a).............. 642 7,543
Wendy's
International,
Inc. ............ 1,570 28,064
-----------
503,829
-----------
Retail--Food Stores (0.6%)
Albertson's, Inc.. 3,939 117,185
American Stores
Co. ............. 2,232 62,775
Bruno's, Inc...... 1,188 13,811
Giant Food, Inc... 916 25,992
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
107
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Retail--Food Stores
(Continued)
Great Atlantic &
Pacific Tea
Company, Inc. ... 635 $ 16,748
Kroger Company
(The) (a)........ 1,695 45,553
Longs Drug Stores
Corp............. 280 10,500
Rite Aid Corp. ... 1,315 33,697
Walgreen Company.. 1,945 97,493
Winn-Dixie Stores,
Inc.............. 1,178 68,029
-----------
491,783
-----------
Retail--General
Merchandise (2.6%)
Dayton Hudson
Corp. ........... 1,067 76,557
Dillard Department
Stores, Inc. .... 1,713 50,319
Kmart Corp. ...... 6,476 94,712
May Department
Stores Company... 3,894 162,088
Mercantile Stores
Company, Inc. ... 530 24,645
Nordstrom, Inc. .. 1,301 53,829
Penney (J.C.)
Company, Inc. ... 3,653 175,344
Price/Costco, Inc.
(a).............. 3,429 55,721
Sears, Roebuck
& Company........ 4,872 291,711
TJX Companies,
Inc. (The)....... 1,174 15,555
Wal-Mart Stores,
Inc.............. 35,800 957,650
Woolworth Corp. .. 2,085 31,536
-----------
1,989,667
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Retail--Specialty
Stores (1.1%)
Charming Shoppes,
Inc. ............ 1,580 $ 8,295
Circuit City
Stores, Inc. .... 1,545 48,861
Gap, Inc. (The)... 2,226 77,632
Home Depot, Inc.
(The)............ 6,969 283,115
Limited (The),
Inc.............. 5,618 123,596
Lowe's Companies,
Inc.............. 2,461 73,522
Melville Corp..... 1,688 57,814
Pep Boys--Manny,
Moe & Jack....... 921 24,637
Tandy Corp. ...... 1,028 53,327
Toys "R" Us (a)... 4,455 130,309
-----------
881,108
-----------
Savings & Loans (0.9%)
Ahmanson (H.F.)
& Company........ 1,826 40,172
Federal Home Loan
Mortgage Corp.... 2,851 196,006
Federal National
Mortgage
Association...... 4,301 405,907
Golden West
Financial Corp. . 925 43,591
Great Western
Financial Corp. . 2,087 43,044
-----------
728,720
-----------
Security & Commission
Brokers (1.0%)
Alexander &
Alexander
Services, Inc. .. 648 15,471
American Express
Company.......... 7,680 269,760
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
108
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Security & Commission
Brokers (Continued)
Dean Witter
Discover
& Company........ 2,628 $ 123,516
Marsh & McLennan
Companies, Inc... 1,174 95,241
Merrill Lynch &
Co., Inc. ....... 3,044 159,810
Salomon Inc....... 1,695 68,012
-----------
731,810
-----------
Steel (0.3%)
Armco Inc. (a).... 1,584 10,692
Bethlehem Steel
Corp. (a)........ 1,658 26,942
Inland Steel
Industries, Inc.. 640 19,520
Nucor Corp........ 1,332 71,262
USX--U.S. Steel
Group Inc........ 1,156 39,738
Worthington
Industries, Inc.. 1,377 28,142
-----------
196,296
-----------
Textile (0.0%) (b)
Springs
Industries,
Inc. ............ 270 10,058
-----------
Timeshare &
Software (0.2%)
Automatic Data
Processing,
Inc. ............ 2,216 139,331
Computer Sciences
Corp. (a)........ 798 45,386
-----------
184,717
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Tire & Rubber
Products (0.2%)
Cooper Tire &
Rubber Company... 1,304 $ 31,785
Goodyear Tire &
Rubber Company... 2,338 96,443
-----------
128,228
-----------
Tobacco (1.6%)
American Brands,
Inc.............. 3,133 124,537
Philip Morris
Companies, Inc... 13,726 1,020,871
UST Inc........... 3,150 93,713
-----------
1,239,121
-----------
Trucking &
Shipping (0.1%)
Consolidated
Freightways,
Inc.............. 527 11,660
Roadway Services,
Inc. ............ 638 30,146
Yellow Corp....... 403 7,304
-----------
49,110
-----------
Utilities--Electric (3.0%)
American Electric
Power Company,
Inc. ............ 2,880 101,160
Baltimore Gas &
Electric Company. 2,329 58,225
Carolina Power &
Light Company.... 2,490 75,323
Central & South
West Corp........ 2,994 78,592
CINergy Corp...... 2,327 61,084
Consolidated
Edison Company of
New York......... 3,652 107,734
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
109
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Utilities--Electric
(Continued)
Detroit Edison
Company.......... 2,334 $ 68,269
Dominion Resources
Inc. ............ 2,609 95,228
Duke Power
Company.......... 3,143 130,434
Entergy Corp. .... 3,529 85,137
FPL Group, Inc. .. 2,973 114,832
General Public
Utilities Corp... 2,800 83,300
Houston Industries
Inc.............. 2,080 87,620
Niagara Mohawk
Power Corp....... 2,219 32,730
Northern States
Power Company.... 1,037 47,832
Ohio Edison
Company.......... 2,351 53,191
Pacific Gas &
Electric Company. 6,667 193,343
PacifiCorp........ 4,413 82,744
Peco Energy
Company.......... 3,409 94,174
Public Service
Enterprise Group
Inc.............. 3,793 105,256
SCEcorp........... 6,935 118,762
Southern Company
(The)............ 10,130 226,659
Texas Utilities
Company.......... 3,516 120,862
Unicom Corp....... 3,286 87,490
Union Electric
Company.......... 1,579 58,818
-----------
2,368,799
-----------
Utilities--Gas &
Pipeline (0.6%)
Columbia Gas
System, Inc. (a). 788 25,019
Consolidated
Natural
Gas Company...... 1,435 54,171
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
----------------------
<S> <C> <C>
Utilities--Gas &
Pipeline (Continued)
Eastern
Enterprises.... 283 $ 8,455
Enron Corp. .... 3,885 136,461
Enserch Corp. .. 1,038 17,776
Nicor Inc. ..... 799 21,473
Oneok, Inc...... 398 8,507
Pacific
Enterprises.... 1,301 31,875
Panhandle
Eastern Corp. . 1,333 32,492
Peoples Energy
Corp........... 524 13,558
Sonat Inc. ..... 1,330 40,565
Williams
Companies,
Inc. (The)..... 1,582 55,172
-----------
445,524
-----------
Utilities--Telephone (6.3%)
AT&T Corp. ..... 24,406 1,296,569
Airtouch
Communications
(a)............ 7,631 217,484
Alltel Corp. ... 2,800 71,050
Ameritech
Corp. ......... 8,501 374,044
Bell Atlantic
Corp. ......... 6,783 379,848
BellSouth
Corp. ......... 7,714 489,839
GTE Corp........ 14,856 506,961
MCI
Communications
Corp........... 9,634 211,948
NYNEX Corp. .... 6,513 262,148
Pacific Telesis
Group.......... 6,612 176,871
SBC
Communications,
Inc. 9,403 447,818
Sprint Corp. ... 5,349 179,860
US West Inc..... 7,087 294,996
-----------
4,909,436
-----------
Total Common
Stocks (Cost
$52,327,518)... 62,523,599(c)
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
110
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREFERRED STOCK (0.0%) (b)
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
Electronic
Components (0.0%) (b)
Teledyne, Inc.
$1.20, Series E. 9 $ 131
-----------
Total Preferred
Stock
(Cost $129)..... 131
-----------
</TABLE>
SHORT-TERM
INVESTMENTS (19.6%)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
Commercial Paper (16.9%)
Banco Itau S.A.,
Cayman Islands
6.00%, due
7/19/95......... $ 2,700,000 2,691,900
Compagnie
Bancaire USA
Finance Corp.
6.05%, due
7/3/95.......... 600,000 599,798
Countrywide
Funding Corp.
6.00%, due
7/17/95......... 1,200,000 1,196,800
Dynamic Funding
Corp.
6.00%, due
7/17/95........ 300,000 299,200
6.15%, due
7/28/95........ 161,000 160,258
Embarcadero
Center
Associates
6.00%, due
7/24/95......... 500,000 498,083
Equitable Of Iowa
Cos. 6.00%, due
7/19/95......... 120,000 119,640
Freedom Asset
Funding Corp.
6.02%, due
8/4/95.......... 200,000 198,863
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------------------
<S> <C> <C>
Commercial Paper (Continued)
Great Western
Bank
6.00%, due
7/19/95......... $3,000,000 $ 2,991,000
Industrial
Funding Corp.
6.03%, due
7/6/95.......... 110,000 109,908
Pfizer Inc.
5.90%, due
8/7/95.......... 1,600,000 1,590,298
Shinhan Bank
5.98%, due
7/6/95......... 1,020,000 1,019,153
6.00%, due
7/12/95........ 1,496,000 1,493,257
Washington Square
Mortgage Co.
5.95%, due
7/17/95......... 150,000 149,603
------------
Total Commercial
Paper (Cost
$13,117,761).... 13,117,761
------------
U.S. Government
(2.7%)
United States
Treasury
Bills
5.445%, due
9/21/95 (d) 2,160,000 2,132,510
------------
Total U.S.
Government (Cost
$2,133,253)..... 2,132,510
------------
Total Short-Term
Investments
(Cost
$15,251,014).... 15,250,271
------------
Total Investments
(Cost
$67,578,661).... 99.8% 77,774,001
Cash and Other
Assets, Less
Liabilities..... 0.2 138,931
---------- ------------
Net Assets....... 100.0% $ 77,912,932
========== ============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
111
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
PORTFOLIO
OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS (0.6%)
<TABLE>
<CAPTION>
CONTRACTS UNREALIZED
LONG APPRECIATION
----------------------
<S> <C> <C>
Standard &
Poor's 500
September 1995
(Settlement
Value
$15,046,625)... 55 $ 470,175(g)
-----------
Total Futures
Contracts...... $ 470,175
- --------------------------
===========
</TABLE>
- --------
(a) Non-income producing securities.
(b) Less than one tenth of a percent.
(c) The combined market value of common stocks and Standard & Poor's 500 Index
futures contracts represents 99.6% of net assets.
(d) Partially segregated as collateral for futures contracts.
(e) The cost for Federal income tax purposes is $67,697,213.
(f) At June 30, 1995 net unrealized appreciation was $10,076,788, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $11,311,894 and aggregate gross unrealized depre-
ciation for all investments on which there was an excess of cost over mar-
ket value of $1,235,106.
(g) Represents the difference between the value of the contracts at the time
they were opened and the value at June 30, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
112
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (Note 2)
(identified cost $67,578,661).................................... $77,774,001
Cash.............................................................. 152,918
Receivables:
Dividends and interest............................................ 139,953
Fund shares sold.................................................. 119,970
Unamortized organization expense
(Note 2)......................................................... 12,793
Other assets...................................................... 419
-----------
Total assets.................................................... 78,200,054
-----------
LIABILITIES:
Payables:
Investment securities purchased................................... 160,230
Recordkeeping..................................................... 19,809
NYLIAC............................................................ 7,288
Custodian......................................................... 6,717
Administrator..................................................... 6,254
Adviser........................................................... 6,254
Directors......................................................... 534
Accrued expenses.................................................. 18,035
Variation margin on futures contracts............................. 62,001
-----------
Total liabilities............................................... 287,122
-----------
Net assets applicable to
outstanding shares............................................... $77,912,932
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.01 per share) 50 million shares
authorized....................................................... $ 62,784
Additional paid-in capital........................................ 64,926,126
Accumulated undistributed net investment income................... 900,868
Accumulated undistributed net realized gain on investments........ 1,357,639
Net unrealized appreciation
on investments................................................... 10,665,515
-----------
Net assets applicable to
outstanding shares............................................... $77,912,932
===========
Shares of capital stock outstanding............................... 6,278,412
===========
Net asset value per share outstanding............................. $ 12.41
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)..................................................... $ 763,062
Interest.......................................................... 374,773
-----------
Total income.................................................... 1,137,835
-----------
Expenses: (Note 2)
Recordkeeping..................................................... 75,262
Administration (Note 3)........................................... 69,380
Advisory (Note 3)................................................. 34,690
Custodian......................................................... 6,799
Shareholder communication......................................... 5,922
Amortization of organization expense.............................. 5,446
Auditing.......................................................... 4,759
Directors......................................................... 3,074
Legal............................................................. 2,944
Miscellaneous..................................................... 4,735
-----------
Total expenses before reimbursement............................. 213,011
Expense reimbursement from Administrator (Note 3)................. (49,967)
-----------
Net expenses.................................................... 163,044
-----------
Net investment income............................................. 974,791
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain from:
Securities transactions........................................... 118,461
Futures transactions.............................................. 1,357,935
-----------
Net realized gain on investments.................................. 1,476,396
-----------
Net change in unrealized appreciation
on investments:
Securities transactions........................................... 9,687,624
Futures transactions.............................................. 546,276
-----------
Net unrealized gain on investments................................ 10,233,900
-----------
Net realized and unrealized gain
on investments................................................... 11,710,296
-----------
Net increase in net assets resulting
from operations.................................................. $12,685,087
===========
</TABLE>
- --------
(a) Dividends recorded net of foreign withholding taxes in the amount of
$5,837.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
113
<PAGE>
- --------------------------------------------------------------------------------
INDEXED EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
and the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income............................. $ 974,791 $ 1,387,787
Net realized gain on investments.................. 1,476,396 306,434
Net change in unrealized appreciation on invest-
ments............................................ 10,233,900 (1,143,715)
------------ ------------
Net increase in net assets resulting from opera-
tions............................................ 12,685,087 550,506
------------ ------------
Dividends and distributions to shareholders:
From net investment income........................ (75,000) (1,386,710)
From net realized gain on investments............. (100,000) (275,140)
------------ ------------
Total dividends and distributions to sharehold-
ers............................................. (175,000) (1,661,850)
------------ ------------
Capital share transactions:
Net proceeds from sale of shares.................. 12,940,719 21,300,925
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions... 175,000 1,661,850
------------ ------------
13,115,719 22,962,775
Cost of shares redeemed........................... (10,877,327) (1,768,151)
------------ ------------
Increase in net assets derived from capital share
transactions.................................... 2,238,392 21,194,624
------------ ------------
Net increase in net assets....................... 14,748,479 20,083,280
NET ASSETS:
Beginning of period............................... 63,164,453 43,081,173
------------ ------------
End of period..................................... $ 77,912,932 $ 63,164,453
============ ============
Accumulated undistributed net investment income... $ 900,868 $ 1,077
============ ============
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(Selected per share data and ratios)
<TABLE>
<CAPTION>
JANUARY 29,
SIX MONTHS 1993 (A)
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1995* 1994 1993
---------- ------------ ------------
<S> <C> <C> <C>
Net asset value at beginning of period.... $ 10.38 $ 10.58 $ 10.00
------- ------- -------
Net investment income..................... 0.16 0.24 0.19
Net realized and unrealized gain (loss) on
investments.............................. 1.90 (0.15) 0.67
------- ------- -------
Total from investment operations.......... 2.06 0.09 0.86
------- ------- -------
Less dividends and distributions:
From net investment income............... (0.01) (0.24) (0.19)
From net realized gain on investments.... (0.02) (0.05) (0.08)
In excess of net realized gain on invest-
ments................................... -- -- (0.01)
------- ------- -------
Total dividends and distributions......... (0.03) (0.29) (0.28)
------- ------- -------
Net asset value at end of period.......... $ 12.41 $ 10.38 $ 10.58
======= ======= =======
Total investment return (b)............... 19.89% 0.76% 8.53%
Ratios (to average net
assets)/Supplemental Data:
Net investment income.................... 2.81%+ 2.61% 2.54%+
Net expenses............................. 0.47%+ 0.47% 0.47%+
Expenses (before reimbursement).......... 0.61%+ 0.68% 0.96%+
Portfolio turnover rate................... 1% 8% 7%
Net assets at end of period (in 000's).... $77,913 $63,164 $43,081
</TABLE>
- --------
(a) Commencement of Operations.
(b) Total return is not annualized.
+ Annualized.
* Unaudited.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
114
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
NOTE 1--Organization and Business:
- -------------------------------------------------------------------------------
New York Life MFA Series Fund, Inc. (the "Company") was incorporated under
Maryland law on June 3, 1983. The Company is registered under the Investment
Company Act of 1940, as amended, ("Investment Company Act") as an open-end
diversified management investment company. High Yield Corporate Bond,
International Equity and Value Portfolios, which commenced operations on May
1, 1995, Capital Appreciation, Cash Management, Government, Total Return and
Indexed Equity Portfolios, which commenced operations on January 29, 1993, and
Bond and Growth Equity Portfolios, which commenced operations on January 23,
1984, (the "Funds") are separate series of the Company. Shares of the Funds
are currently offered only to New York Life Insurance and Annuity Corporation
("NYLIAC"), a wholly owned subsidiary of New York Life Insurance Company ("New
York Life"). NYLIAC allocates shares of the Funds to, among others, New York
Life Insurance and Annuity Corporation's LifeStagessm Annuity Separate
Account. The Separate Account is used to fund flexible premium retirement
annuity policies.
Effective May 2, 1994, the name of the New York Life MFA Series Fund, Inc.
Common Stock Portfolio changed to New York Life MFA Series Fund, Inc. Growth
Equity Portfolio.
- -------------------------------------------------------------------------------
NOTE 2--Significant Accounting Policies:
- -------------------------------------------------------------------------------
The following is a summary of significant accounting policies followed by the
Company:
(A)
VALUATION OF FUND SHARES. The net asset value per share of each Fund is
calculated on every day the New York Stock Exchange is open for trading,
except the day after Thanksgiving and Christmas Eve. Net asset value per share
is calculated as of the regular close of the New York Stock Exchange (normally
4:00 P.M., Eastern time) for each Fund by dividing the current market value
(amortized cost, in the case of Cash Management Portfolio) of the Fund's total
assets, less liabilities, by the total number of outstanding shares of that
Fund.
(B)
SECURITIES VALUATION. Portfolio securities of Cash Management Portfolio are
valued at amortized cost, which approximates market value. This method
involves initially valuing an instrument at its cost and thereafter amortizing
the premium or accreting the discount to income over the life of the security.
Securities of each of the other Funds are stated at value determined (a) by
appraising common and preferred stocks which are traded on the New York Stock
Exchange at the last sale price on that day or, if no sale occurs, at the mean
between the closing bid and asked prices, (b) by appraising common and
preferred stocks traded on other United States national securities exchanges
or foreign securities exchanges as nearly as possible in the manner described
in (a) by reference to its principal exchange, including the National
Association of Securities Dealers National Market System, (c) by appraising
over-the-counter securities quoted on the National Association
115
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
of Securities Dealers NASDAQ system (but not listed on the National Market
System) at the bid price supplied through such system, (d) by appraising over-
the-counter securities not quoted on the NASDAQ system and securities listed
or traded on certain foreign exchanges whose operations are similar to the
U.S. over-the-counter market, at prices supplied by the pricing agent or
brokers selected by the Adviser if these prices are deemed to be
representative of market values at the regular close of business of the New
York Stock Exchange, (e) by appraising debt securities at prices supplied by a
pricing agent, selected by the Adviser, whose prices reflect broker/dealer
supplied valuations and electronic data processing techniques if those prices
are deemed by the Adviser to be representative of market values at the regular
close of business of the New York Stock Exchange, (f) by appraising options
and futures contracts at the last sale price on the market where such options
or futures contracts are principally traded, and (g) by appraising all other
securities and other assets, including debt securities for which prices are
supplied by a pricing agent but are not deemed by the Adviser to be
representative of market values, but excluding money market instruments with a
remaining maturity of sixty days or less and including restricted securities
and securities for which no market quotations are available, at fair value in
accordance with procedures approved by and determined in good faith by the
Directors, although the actual calculations may be done by others. Short-term
securities which mature in more than 60 days are valued at current market
quotations. Short-term securities which mature in 60 days or less are valued
at amortized cost if their term to maturity at purchase was 60 days or less,
or by amortizing their value on the 61st day prior to maturity if their
original term to maturity at purchase exceeded 60 days.
Events affecting the values of the portfolio securities that occur between
the time their prices are determined, generally on foreign exchanges and over-
the-counter markets, and the regular close of the New York Stock Exchange will
not be reflected in the Funds' calculations of net asset values unless the
Adviser believes that the particular event would materially affect net asset
value, in which case an adjustment would be made.
(C)
FORWARD AND FUTURES CONTRACTS. During the period the forward or futures
contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" such contract on a daily
basis to reflect the market value of the contract at the end of each day's
trading. For futures contracts, the Fund agrees to receive from or pay to the
broker an amount of cash equal to the daily fluctuation in the value of the
contracts. Such receipts or payments are known as "variation margin". When the
forward or futures contract is closed, the Fund records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Fund's basis in the contract. (Also see Note 5).
(D)
REPURCHASE AGREEMENTS. At the time the Funds enter into a repurchase
agreement, the value of the underlying security, including accrued interest,
will be equal to or exceed the value of the repurchase agreement and, in the
case of repurchase agreements exceeding one day, the value of the underlying
security, including accrued interest, is required during the term of the
agreement to be equal to or exceed the value of the repurchase agreement. The
underlying securities for all repurchase agreements are held in an account of
the respective Funds' custodian. In the case of repurchase agreements
exceeding one day, the market value of the underlying securities are monitored
by pricing them daily. (Also see Note 5).
116
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(E)
SECURITY TRANSACTIONS AND INVESTMENT INCOME. The Company records security
transactions on the trade date. Realized gains and losses on security
transactions are determined using the identified cost method and include gains
and losses from repayments of principal on mortgage backed securities.
Dividend income is recognized on the ex-dividend date and interest income is
accrued daily. Discounts on securities purchased for all Funds are accreted on
the constant yield method over the life of the respective securities or, if
shorter, over the period to the first date of call.
(F)
FOREIGN CURRENCY TRANSLATION. The books and records of the Company are kept in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the
mean between the buying and selling rates last quoted by any major U.S. bank
at the following dates:
(i) market value of investment securities, other assets and
liabilities--at the valuation date
(ii) purchases and sales of investment securities, income and expenses--
at the date of such transactions.
The assets and liabilities of International Equity Portfolio are presented
at the exchange rates and market values at the close of the period. The
changes in net assets arising from fluctuations in exchange rates and the
changes in net assets resulting from fluctuations in market prices are not
separately presented. However, gains and losses from certain foreign currency
transactions are treated as ordinary income for Federal income tax purposes.
Net realized gain (loss) on foreign currency transactions represents net
gains and losses on forward currency contracts, net currency gains or losses
realized as a result of differences between the amounts of securities sale
proceeds or purchase cost, dividends, interest and withholding taxes recorded
on the Fund's books and the U.S. dollar equivalent amount actually received or
paid. Net currency gains or losses from valuing such foreign currency
denominated assets and liabilities at period-end exchange rates are reflected
in unrealized foreign exchange gains.
(G)
FEDERAL INCOME TAXES. Each of the Funds is treated as a separate entity for
Federal income tax purposes. The Company's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of the taxable income to the shareholders of
each Fund within the allowable time limits. Therefore, no Federal income tax
provision is required.
Investment income received by a Fund from foreign sources may be subject to
foreign income taxes withheld at the source.
117
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
(H)
DIVIDENDS TO SHAREHOLDERS. Dividends are recorded on the ex-dividend date. For
Cash Management Portfolio, dividends are declared daily and paid monthly. Each
of the other Funds intends to declare and pay, as a dividend, substantially
all of their net investment income and net realized gains no less frequently
than once a year.
Income and capital gain dividends are determined in accordance with income
tax regulations which may differ from generally accepted accounting
principles.
(I)
ORGANIZATION COSTS. Costs incurred in connection with the initial organization
and registration of a Portfolio of the Company are amortized over 60 months
beginning with the commencement of operations of the respective Portfolio.
Organization costs for High Yield Corporate Bond, International Equity and
Value Portfolios, paid by, and reimbursable to, NYLIAC, aggregated
approximately $220,500. Such costs are being amortized beginning with the
commencement of operations of the respective Portfolio on May 1, 1995.
Organization costs for Capital Appreciation, Cash Management, Government,
Total Return and Indexed Equity Portfolios, paid by, and reimbursable to,
NYLIAC, aggregated approximately $253,500. Such costs are being amortized
beginning with the commencement of operations of the respective Portfolio on
January 29, 1993. In the event that any of the initial shares purchased by
NYLIAC are redeemed, proceeds of such redemption will be reduced by the
proportionate amount of the unamortized deferred organizational expenses which
the number of shares redeemed bears to the total number of initial shares
purchased. All of the initial shares purchased by NYLIAC in Capital
Appreciation, Cash Management, Government and Total Return Portfolios were
redeemed on February 21, 1995. A portion of the initial shares purchased by
NYLIAC in Indexed Equity Portfolio were redeemed on February 14, 1995, May 10,
1995 and May 19, 1995. (Also see Note 7 for further discussion of these
redemptions).
(J)
EXPENSES. Expenses with respect to the Company are allocated in proportion to
the net assets of the respective Funds when the expenses are incurred except
where allocations of direct expenses can otherwise fairly be made.
- -------------------------------------------------------------------------------
NOTE 3--Fees and Related Party Policies:
- -------------------------------------------------------------------------------
(A)
INVESTMENT ADVISORY AND ADMINISTRATION FEES. MacKay-Shields Financial
Corporation ("MacKay-Shields") acts as investment adviser to Capital
Appreciation, Cash Management, Government, High Yield Corporate Bond,
International Equity, Total Return and Value Portfolios under an Investment
Advisory Agreement. MacKay-Shields is a registered investment adviser, a
wholly-owned subsidiary of NYLIFE Inc. and an indirect wholly-owned subsidiary
of New York Life Insurance Company ("New York Life"). New York Life acts as
investment adviser to Bond and Growth Equity Portfolios under an Investment
Advisory agreement. Monitor Capital Advisors Inc. ("Monitor") acts as
investment adviser to Indexed Equity Portfolio under an Investment Advisory
Agreement. Monitor is a registered investment adviser, a wholly-owned
subsidiary of NYLIFE Inc. and an indirect wholly-owned subsidiary of New York
Life.
118
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NYLIAC, a wholly-owned subsidiary of New York Life, is Administrator for the
Company.
The Company, on behalf of each Fund, pays the Advisers and Administrator a
monthly fee for the services performed and the facilities furnished at an
approximate annual rate of the average daily net assets of each Fund as
follows:
<TABLE>
<CAPTION>
ADVISER ADMINISTRATOR
------- -------------
<S> <C> <C>
Capital Appreciation Portfolio............................ .36% .20%
Cash Management Portfolio................................. .25% .20%
Government Portfolio...................................... .30% .20%
High Yield Corporate Bond Portfolio....................... .30% .20%
International Equity Portfolio............................ .60% .20%
Total Return Portfolio.................................... .32% .20%
Value Portfolio........................................... .36% .20%
Bond Portfolio............................................ .25% .20%
Growth Equity Portfolio................................... .25% .20%
Indexed Equity Portfolio.................................. .10% .20%
</TABLE>
The Administrator has voluntarily agreed to assume the Funds' operating
expenses through December 31, 1996, which on an annualized basis exceed the
percentages indicated below, after which, the voluntary expense limitation may
be terminated at any time.
<TABLE>
<S> <C>
Capital Appreciation Portfolio............................................. .73%
Cash Management Portfolio.................................................. .62%
Government Portfolio....................................................... .67%
High Yield Corporate Bond Portfolio........................................ .67%
International Equity Portfolio............................................. .97%
Total Return Portfolio..................................................... .69%
Value Portfolio............................................................ .73%
Bond Portfolio............................................................. .62%
Growth Equity Portfolio.................................................... .62%
Indexed Equity Portfolio................................................... .47%
</TABLE>
In connection with the expense limitation the Administrator assumed the
following expenses for the six month period ended June 30, 1995.
<TABLE>
<S> <C>
Capital Appreciation Portfolio......................................... $119,306
Cash Management Portfolio.............................................. 144,974
Government Portfolio................................................... 54,515
High Yield Corporate Bond Portfolio.................................... 24,150
International Equity Portfolio......................................... 33,554
Total Return Portfolio................................................. 106,844
Value Portfolio........................................................ 15,931
Bond Portfolio......................................................... 426,588
Growth Equity Portfolio................................................ 728,240
Indexed Equity Portfolio............................................... 49,967
</TABLE>
119
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
(B)
DISTRIBUTOR. NYLIFE Distributors Inc. ("NYLIFE Distributors"), a wholly-owned
subsidiary of NYLIFE Inc. and an indirect wholly-owned subsidiary of New York
Life serves as the Company's distributor and principal underwriter (the
"Distributor") pursuant to a Distribution agreement. NYLIFE Distributors is
not obligated to sell any specific amount of the Company's shares, and
receives no compensation from the Company pursuant to the Distribution
Agreement.
(C)
DIRECTORS FEES. Directors, other than those affiliated with New York Life,
MacKay-Shields, Monitor, NYLIFE Distributors or NYLIFE Securities, receive an
annual fee of $16,000 and $750 for each Board meeting attended plus
reimbursement for travel and out-of-pocket expenses.
(D)
RECORDKEEPING FEES. NYLIAC provides recordkeeping services for Cash
Management, Bond and Growth Equity Portfolios. For the six month period ended
June 30, 1995 the Portfolios accrued recordkeeping fees as follows:
<TABLE>
<S> <C>
Cash Management Portfolio............................................. $ 93,931
Bond Portfolio........................................................ 471,857
Growth Equity Portfolio............................................... 844,691
</TABLE>
- -------------------------------------------------------------------------------
NOTE 4--Federal Income Tax:
- -------------------------------------------------------------------------------
At December 31, 1994, for Federal income tax purposes, capital loss
carryforwards, as shown in the table below, are available to the extent
provided by regulations to offset future realized gains of each respective
Portfolio through the years indicated. To the extent that these loss
carryforwards are used to offset future capital gains, it is probable that the
capital gains so offset will not be distributed to shareholders. Additionally,
as shown in the table below, certain Funds intend to elect, to the extent
provided by regulations, to treat certain qualifying capital losses that arose
during the year ended December 31, 1994 as if they arose on January 1, 1995.
<TABLE>
<CAPTION>
CAPITAL LOSS CAPITAL LOSS
AVAILABLE THROUGH AMOUNT (000'S) DEFERRED (000'S)
----------------- -------------- ----------------
<S> <C> <C> <C>
Capital Appreciation Portfo-
lio......................... 2002 $3,069 $174
====== ====
Government Portfolio......... 2002 $4,138 $858
====== ====
Total Return Portfolio....... 2002 $4,712 $685
====== ====
Bond Portfolio............... 2002 $7,465 $ 0
====== ====
Indexed Equity Portfolio..... $ 0 $125
====== ====
</TABLE>
120
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NOTE 5--Financial Investments:
- -------------------------------------------------------------------------------
International Equity Portfolio's use of forward contracts and Indexed Equity
Portfolio's use of futures contracts involve, to varying degrees, elements of
market risk in excess of the amount recognized in the statement of assets and
liabilities. The contract or notional amounts reflect the extent of the Funds'
involvement in these financial instruments. Risks arise from possible
movements in the securities values, indexes or foreign exchange rates
underlying these instruments.
International Equity Portfolio enters into forward foreign currency
exchange contracts in order to protect against the adverse effect that changes
in future foreign currency exchange rates may have on its investment portfolio
or on its investment activities that are undertaken in foreign currencies.
Indexed Equity Portfolio may use stock index futures contracts for several
reasons: to maintain cash reserves while remaining fully invested, to
facilitate trading, to reduce transaction costs or to gain full exposure to
changes in stock market prices.
The Portfolio's activities in futures contracts are conducted through
regulated exchanges which minimize counterparty credit risks. The unrealized
appreciation/depreciation on forward contracts reflects the Portfolio's
exposure at year end to credit loss in the event of a counterparty's failure
to perform its obligations.
There are certain risks involved in investing in foreign securities that are
in addition to the usual risks inherent in domestic instruments. These risks
include those resulting from future adverse political and economic
developments and possible imposition of currency exchange blockages or other
foreign governmental laws or restrictions.
High Yield Corporate Bond Portfolio invests primarily in high yield bonds.
These bonds may involve special risks in addition to the risks associated with
investment in higher rated debt securities. High yield bonds may be more
susceptible to real or perceived adverse economic and competitive industry
conditions than higher grade bonds. Also, the secondary market on which high
yield bonds are traded may be less liquid than the market for higher grade
bonds.
Each Portfolio may enter into repurchase agreements to earn income. In the
event of the bankruptcy of the seller or the failure of the seller to
repurchase the securities as agreed, a Portfolio could suffer losses,
including loss of interest on or principal of the security and costs
associated with delay and enforcement of the repurchase agreement.
- -------------------------------------------------------------------------------
NOTE 6--Acquisition of Money Market Portfolio:
- -------------------------------------------------------------------------------
On March 31, 1994, Cash Management Portfolio acquired all the net assets of
Money Market Portfolio pursuant to a plan of reorganization approved by the
shareholders of Cash Management and Money Market Portfolios on December 14,
1993. The acquisition was accomplished by a tax-free exchange of 37,601,126
shares of Cash Management Portfolio (valued at $37,601,126) for the 3,759,941
shares of Money Market Portfolio outstanding on March 31, 1994. Money Market's
net assets at that date ($37,597,525) were combined with those
121
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
of Cash Management Portfolio. The aggregate net assets of Cash Management and
Money Market Portfolios immediately before the acquisition were $28,516,066
and $37,597,525, respectively. The combined net assets of Cash Management and
Money Market Portfolios immediately after the acquisition were $66,113,591.
- -------------------------------------------------------------------------------
NOTE 7--Redemption by NYLIAC of Initial Investment:
- -------------------------------------------------------------------------------
On February 21, 1995, NYLIAC redeemed all of its initial investment in Capital
Appreciation, Cash Management, Government and Total Return Portfolios. In
connection with the redemption of the initial shares, NYLIAC reimbursed each
of the above listed Funds $24,131, which represented the unamortized deferred
organization expense of the respective Funds on the date of the redemption.
Additionally, on February 14, 1995, May 10, 1995 and May 19, 1995, NYLIAC
redeemed a portion of its initial investment in Indexed Equity Portfolio.
NYLIAC reimbursed Indexed Equity Portfolio $11,338 which represented the
proportionate amount of the unamortized deferred organization expense which
the number of shares redeemed bears to the total number of initial shares
purchased on each of the dates above.
122
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
(THIS PAGE INTENTIONALLY LEFT BLANK)
123
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO
FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 8--Purchases and Sales of Securities (in 000's):
- --------------------------------------------------------------------------------
During the six month period ended June 30, 1995, purchases and sales of
securities, other than securities subject to repurchase transactions and short-
term securities, were as follows:
<TABLE>
<CAPTION>
HIGH YIELD INTERNATIONAL
CAPITAL APPRECIATION GOVERNMENT CORPORATE BOND EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO (A) PORTFOLIO (A)
PURCHASES SALES PURCHASES SALES PURCHASES SALES PURCHASES SALES
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Government Securi-
ties................... $ -- $ -- $241,889 $253,799 $ -- $-- $ -- $ --
All others.............. 47,760 27,575 -- -- 8,753 123 9,010 --
----------------------------------------------------------------------------
Total................... $ 47,760 $ 27,575 $241,889 $253,799 $8,753 $123 $9,010 $ --
----------------------------------------------------------------------------
----------------------------------------------------------------------------
</TABLE>
- --------
(a)For the period May 1, 1995 (Commencement of Operations) through June 30,
1995.
- --------------------------------------------------------------------------------
NOTE 9--Capital Share Transactions (in 000's):
- --------------------------------------------------------------------------------
Transactions in capital shares for the six month period ended June 30, 1995 and
the year ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
HIGH YIELD
CORPORATE
CAPITAL APPRECIATION CASH MANAGEMENT GOVERNMENT BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
1995 1994 1995 1994 1995 1994 1995 (A)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold............. 2,865 6,383 50,636 99,252 475 2,392 362
Shares issued in
reinvestment of
dividends and
distributions.......... -- 43 1,790 2,011 -- 498 --
Shares issued in
connection with
acquisition of Money
Market Portfolio....... -- -- -- 37,601 -- -- --
-------------------------------------------------------------
2,865 6,426 52,426 138,864 475 2,890 362
Shares redeemed......... 707 88 60,296 94,481 1,576 808 9
-------------------------------------------------------------
Net increase (decrease). 2,158 6,338 (7,870) 44,383 (1,101) 2,082 353
-------------------------------------------------------------
-------------------------------------------------------------
</TABLE>
- --------
(a)For the period May 1, 1995 (Commencement of Operations) through June 30,
1995.
124
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN VALUE BOND GROWTH EQUITY INDEXED EQUITY
PORTFOLIO PORTFOLIO (A) PORTFOLIO PORTFOLIO PORTFOLIO
PURCHASES SALES PURCHASES SALES PURCHASES SALES PURCHASES SALES PURCHASES SALES
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$136,746 $136,205 $ -- $ -- $102,000 $71,884 $ -- $ -- $ -- $--
47,092 41,902 4,710 14 14,621 20,977 213,778 189,511 1,097 618
- -----------------------------------------------------------------------------------------
$183,838 $178,107 $4,710 $ 14 $116,621 $92,861 $213,778 $189,511 $1,097 $618
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY TOTAL RETURN VALUE BOND GROWTH EQUITY INDEXED EQUITY
PORTFOLIO PORTFOLIO PORTFOLIPORTFOLIOO PORTFOLIO PORTFOLIO
1995 (A) 1995 1994 1995 (A) 1995 1994 1995 1994 1995 1994
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
49 1,759 6,594 120 900 1,676 1,086 2,091 1,135 2,024
-- 1 301 -- 4 1,165 3 1,616 14 160
-- -- -- -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------
49 1,760 6,895 120 904 2,841 1,089 3,707 1,149 2,184
3 1,225 240 3 1,264 2,776 1,043 1,642 959 169
- ---------------------------------------------------------------------------------
46 535 6,655 117 (360) 65 46 2,065 190 2,015
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
125
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
126
<PAGE>
NEW YORK LIFE
MFA SERIES FUND, INC.
- --------------------------------------------------------------------------------
Officers and Directors
Richard M. Kernan, Jr., Chairman,Chief Executive Officer
and Director
Anne F. Pollack, President,Chief Administrative Officer
and Director
Michael J. Drabb, Director
Jill Feinberg, Director
Daniel Herrick, Director
Robert D. Rock, Director and Vice President
Roman L. Weil, Director
Richard W. Zuccaro, Tax Vice President
Anthony W. Polis, Treasurer
A. Thomas Smith III, Secretary
Marc J. Chalfin, Controller
Investment Advisers
MacKay-Shields Financial Corporation
Monitor Capital Advisors, Inc.
New York Life Insurance Company
Administrator
New York Life Insurance and Annuity Corporation
Custodians
The Bank of New York
Chemical Bank
Independent Accountants
Price Waterhouse LLP
Legal Counsel
Jorden Burt & Berenson
The financial information included herein is taken from the records of the
Funds without examination by the Funds' independent accountants, who do not
express an opinion thereon.
<PAGE>
[LOGO OF LIFESTAGES]
LifeStages/SM/ Separate Account and New York Life MFA Series Fund, Inc.
Semi-Annual Report
--------------
Unaudited
June 30, 1995
This is a Report by the MFA Series Fund, Inc. for the general information of
LifeStages/SM/ policyowners. It must be accompanied or preceded by a current
prospectus package if it is given to anyone who is not an owner of a
LifeStages/SM/ policy. This Report does not offer for sale or solicit orders to
purchase securities.
A variable annuity issued by New York Life Insurance and Annuity Corporation
(NYLIAC)
New York Life Insurance and Annuity Corporation
(A Delaware Corporation)
51 Madison Avenue
New York, NY 10010
Issued by: New York Life Insurance and Annuity Corporation
Distributed by: NYLIFE Distributors Inc.
[LOGO OF NEW YORK LIFE]
New York Life Insurance and Annuity Corporaton
[Recycle LOGO] Printed on recycled paper 18530(895)
