N-30D 1 dn30d.htm PACIFIC SELECT EXEC SEPARATE ACCOUNT OF PL&A Prepared by R.R. Donnelley Financial -- Pacific Select Exec Separate Account of PL&A
December 31, 2001
     
•  Pacific Select Exec
Separate Account of
Pacific Life & Annuity Company
 
 
 
 
Annual
    Report
 
PACIFIC SELECT EXEC

TABLE OF CONTENTS
 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
 
Financial Statements:
     
Statement of Assets and Liabilities
   
1
Statement of Operations
   
5
Statement of Changes in Net Assets
   
9
Notes to Financial Statements
   
15
Independent Auditors’ Report
   
19

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2001
 
   
Blue
Chip
Variable
Account
     
Aggressive
Growth
Variable
Account
     
Emerging
Markets
Variable
Account
     
Diversified
Research
Variable
Account
     
Small-Cap
Equity
Variable
Account
     
International
Large-Cap
Variable
Account
     
I-Net
Tollkeeper
Variable
Account
     
Financial
Services
Variable
Account
   
ASSETS
                                                     
Investments:
                                                     
Blue Chip Portfolio
  
$50,228
                                                 
Aggressive Growth Portfolio
         
$29,294
                                          
Emerging Markets Portfolio
                
$19,522
                                   
Diversified Research Portfolio
                       
$17,372
                            
Small-Cap Equity Portfolio
                              
$51,762
                     
International Large-Cap Portfolio
                                     
$85,018
              
I-Net Tollkeeper Portfolio
                                            
$22,652
       
Financial Services Portfolio
                                                   
$11,249
Receivables:
                                                     
Due from Pacific Life & Annuity Company
         
1,613
     
2
     
1,622
     
270
            
1
     
6
Fund shares redeemed
  
101
                                 
51
              
   
Total Assets
  
50,329
     
30,907
     
19,524
     
18,994
     
52,032
     
85,069
     
22,653
     
11,255
   
LIABILITIES
                                                     
Payables:
                                                     
Due to Pacific Life & Annuity Company
  
101
                                 
51
              
Fund shares purchased
         
1,613
     
2
     
1,622
     
270
            
1
     
6
   
Total Liabilities
  
101
     
1,613
     
2
     
1,622
     
270
     
51
     
1
     
6
   
NET ASSETS
  
$50,228
     
$29,294
     
$19,522
     
$17,372
     
$51,762
     
$85,018
     
$22,652
     
$11,249
   
Shares Owned in each Portfolio
  
6,173
     
3,652
     
3,179
     
1,629
     
2,974
     
13,371
     
5,051
     
1,216
   
Cost of Investments
  
$50,127
     
$28,097
     
$17,803
     
$15,679
     
$49,516
     
$84,695
     
$26,469
     
$10,859
   
 
See Notes to Financial Statements

1

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2001
 
   
Health
Sciences
Variable
Account
     
Technology
Variable
Account
     
Telecom-
munications
Variable
Account
     
Multi-
Strategy
Variable
Account
     
Equity
Income
Variable
Account
     
Strategic
Value
Variable
Account
     
Growth
LT
Variable
Account
     
Focused
30
Variable
Account
                                    
                                    
                                    
                                    
   
ASSETS
                                                     
Investments:
                                                     
Health Sciences Portfolio
  
$15,224
                                                 
Technology Portfolio
         
$27,373
                                          
Telecommunications Portfolio
                
$10,814
                                   
Multi-Strategy Portfolio
                       
$40,195
                            
Equity Income Portfolio
                              
$134,782
                     
Strategic Value Portfolio
                                     
$6,356
              
Growth LT Portfolio
                                            
$129,903
       
Focused 30 Portfolio
                                                   
$211
Receivables:
                                                     
Due from Pacific Life & Annuity Company
                
5
     
1
     
12
     
610
              
Fund shares redeemed
         
65
                                 
69
     
3
   
Total Assets
  
15,224
     
27,438
     
10,819
     
40,196
     
134,794
     
6,966
     
129,972
     
214
   
LIABILITIES
                                                     
Payables:
                                                     
Due to Pacific Life & Annuity Company
         
65
                                 
69
     
3
Fund shares purchased
                
5
     
1
     
12
     
610
              
   
Total Liabilities
         
65
     
5
     
1
     
12
     
610
     
69
     
3
   
NET ASSETS
  
$15,224
     
$27,373
     
$10,814
     
$40,195
     
$134,782
     
$6,356
     
$129,903
     
$211
   
Shares Owned in each Portfolio
  
1,649
     
4,634
     
2,032
     
2,713
     
6,425
     
725
     
6,988
     
30
   
Cost of Investments
  
$14,766
     
$24,121
     
$10,861
     
$39,637
     
$128,919
     
$5,988
     
$147,615
     
$191
   
 
See Notes to Financial Statements

2

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2001
 
   
Mid-Cap Value Variable Account
   
International Value Variable Account
   
Capital Opportunities Variable Account
   
Mid-Cap Growth Variable Account
   
Global Growth Variable Account
  
Equity Index Variable Account
   
Small-Cap Index Variable Account
  
REIT Variable Account
   
ASSETS
                                     
Investments:
                                     
Mid-Cap Value Portfolio
  
$90,080
                                 
International Value Portfolio
       
$119,938
                            
Capital Opportunities Portfolio
            
$30,248
                       
Mid-Cap Growth Portfolio
                 
$17,806
                  
Global Growth Portfolio
                      
$9,814
             
Equity Index Portfolio
                          
$203,672
         
Small-Cap Index Portfolio
                               
$18,006
    
REIT Portfolio
                                   
$30,098
Receivables:
                                     
Due from Pacific Life & Annuity Company
  
3,283
   
1,617
   
17
   
1,197
            
1,094
  
308
Fund shares redeemed
                      
7
  
10
         
   
Total Assets
  
93,363
   
121,555
   
30,265
   
19,003
   
9,821
  
203,682
   
19,100
  
30,406
   
LIABILITIES
                                     
Payables:
                                     
Due to Pacific Life & Annuity Company
                      
7
  
10
         
Fund shares purchased
  
3,283
   
1,617
   
17
   
1,197
            
1,094
  
308
   
Total Liabilities
  
3,283
   
1,617
   
17
   
1,197
   
7
  
10
   
1,094
  
308
   
NET ASSETS
  
$90,080
   
$119,938
   
$30,248
   
$17,806
   
$9,814
  
$203,672
   
$18,006
  
$30,098
   
Shares Owned in each Portfolio
  
6,359
   
9,945
   
3,585
   
2,193
   
1,154
  
6,894
   
1,747
  
2,352
   
Cost of Investments
  
$82,520
   
$121,654
   
$27,839
   
$16,636
   
$9,572
  
$207,949
   
$18,124
  
$28,750
   
 
See Notes to Financial Statements

3

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2001
 
    
Inflation Managed Variable Account (1)
     
Managed Bond Variable Account
     
Money Market Variable Account
     
High Yield Bond Variable Account
     
Equity Variable Account
     
Aggressive Equity Variable Account
     
Large-Cap Value Variable Account
    
ASSETS
                                               
Investments:
                                               
Inflation Managed Portfolio (1)
   
$73,486
                                          
Managed Bond Portfolio
          
$146,390
                                   
Money Market Portfolio
                 
$1,187,925
                            
High Yield Bond Portfolio
                        
$30,891
                     
Equity Portfolio
                               
$19,411
              
Aggressive Equity Portfolio
                                      
$35,750
       
Large-Cap Value Portfolio
                                             
$75,609
Receivables:
                                               
Due from Pacific Life & Annuity Company
                 
66,382
     
1,644
     
1
     
1
       
Fund shares redeemed
   
25
     
130
                                 
38
    
Total Assets
   
73,511
     
146,520
     
1,254,307
     
32,535
     
19,412
     
35,751
     
75,647
    
LIABILITIES
                                               
Payables:
                                               
Due to Pacific Life & Annuity Company
   
25
     
130
                                 
38
Fund shares purchased
                 
66,382
     
1,644
     
1
     
1
       
    
Total Liabilities
   
25
     
130
     
66,382
     
1,644
     
1
     
1
     
38
    
NET ASSETS
   
$73,486
     
$146,390
     
$1,187,925
     
$30,891
     
$19,411
     
$35,750
     
$75,609
    
Shares Owned in each Portfolio
   
6,849
     
13,273
     
117,744
     
4,372
     
1,010
     
3,897
     
6,443
    
Cost of Investments
   
$73,922
     
$146,905
     
$1,188,609
     
$32,059
     
$19,424
     
$34,702
     
$73,807
    
 
(1)
 
Formerly named Government Securities Variable Account and Government Securities Portfolio.
 
See Notes to Financial Statements

4

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Blue
Chip Variable Account (1)
       
Aggressive Growth Variable Account (1)
       
Emerging Markets Variable Account
       
Diversified Research Variable Account
       
Small-Cap Equity Variable Account
       
International Large-Cap Variable Account
       
I-Net Tollkeeper Variable Account
       
Financial Services Variable Account (1)
  
    
INVESTMENT INCOME
                                                                      
Dividends
   
$26
 
              
$29
 
     
$20
 
     
$3,327
 
     
$316
 
              
$28
 
    
Net Investment Income
   
26
 
              
29
 
     
20
 
     
3,327
 
     
316
 
              
28
 
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                                      
Net realized loss
from security transactions
   
(466
)
     
($238
)
     
(545
)
     
(374
)
     
(2,320
)
     
(2,355
)
     
($4,447
)
     
(216
)
Net unrealized appreciation
(depreciation) on investments
   
101
 
     
1,197
 
     
1,829
 
     
1,669
 
     
2,575
 
     
539
 
     
(1,119
)
     
390
 
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
(365
)
     
959
 
     
1,284
 
     
1,295
 
     
255
 
     
(1,816
)
     
(5,566
)
     
174
 
    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
   
($339
)
     
$959
 
     
$1,313
 
     
$1,315
 
     
$3,582
 
     
($1,500
)
     
($5,566
)
     
$202
 
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

5

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Health Sciences Variable Account (1)
       
Technology Variable Account (1)
       
Telecom-
  munications Variable Account (1)
       
Multi-
Strategy Variable Account
       
Equity Income Variable Account
       
Strategic Value Variable Account (1)
     
Growth LT Variable Account
       
Focused
30
Variable Account (1)
  
    
INVESTMENT INCOME
                                                                    
Dividends (2)
                     
$10
 
     
$644
 
     
$855
 
     
$10
 
   
$11,777
 
         
    
Net Investment Income
                     
10
 
     
644
 
     
855
 
     
10
 
   
11,777
 
         
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                                    
Net realized loss
from security transactions
   
($7
)
     
($131
)
     
(482
)
     
(773
)
     
(1,532
)
     
(166
)
   
(13,067
)
     
($3
)
Net unrealized appreciation
(depreciation) on investments
   
458
 
     
3,252
 
     
(47
)
     
843
 
     
5,961
 
     
368
 
   
(14,371
)
     
20
 
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
451
 
     
3,121
 
     
(529
)
     
70
 
     
4,429
 
     
202
 
   
(27,438
)
     
17
 
    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
   
$451
 
     
$3,121
 
     
($519
)
     
$714
 
     
$5,284
 
     
$212
 
   
($15,661
)
     
$17
 
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
(2)
 
Pacific Select Fund had declared dividends on the Focused 30 Portfolio during 2001. The total amounts received by the corresponding Variable Account were below $500 for the period.
 
See Notes to Financial Statements

6

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Mid-Cap Value Variable Account
       
International Value Variable Account
       
Capital Opportunities Variable Account (1)
       
Mid-Cap Growth Variable Account (1)
       
Global Growth Variable Account (1)
       
Equity Index Variable Account
       
Small-Cap Index Variable Account
       
REIT Variable Account
  
    
INVESTMENT INCOME
                                                                      
Dividends
   
$1,518
 
     
$1,070
 
     
$35
 
                       
$1,536
 
     
$1,460
 
     
$762
 
    
Net Investment Income
   
1,518
 
     
1,070
 
     
35
 
                       
1,536
 
     
1,460
 
     
762
 
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                                      
Net realized loss
from security transactions
   
(979
)
     
(1,735
)
     
(320
)
     
($98
)
     
($11
)
     
(1,660
)
     
(1,606
)
     
(115
)
Net unrealized appreciation
(depreciation) on investments
   
7,276
 
     
(1,930
)
     
2,409
 
     
1,170
 
     
242
 
     
(3,433
)
     
(141
)
     
1,331
 
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
6,297
 
     
(3,665
)
     
2,089
 
     
1,072
 
     
231
 
     
(5,093
)
     
(1,747
)
     
1,216
 
    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
   
$7,815
 
     
($2,595
)
     
$2,124
 
     
$1,072
 
     
$231
 
     
($3,557
)
     
($287
)
     
$1,978
 
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

7

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Inflation Managed Variable Account (1)
       
Managed Bond Variable Account
       
Money Market Variable Account
       
High Yield Bond Variable Account
       
Equity Variable Account
       
Aggressive Equity Variable Account
       
Large-Cap Value Variable Account
  
    
INVESTMENT INCOME
                                                             
Dividends
   
$930
 
     
$3,035
 
     
$36,553
 
     
$2,455
 
     
$596
 
              
$1,032
 
    
Net Investment Income
   
930
 
     
3,035
 
     
36,553
 
     
2,455
 
     
596
 
              
1,032
 
    
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
                                                             
Net realized loss
from security transactions
   
(84
)
     
(121
)
     
(913
)
     
(5,105
)
     
(962
)
     
($2,770
)
     
(1,352
)
Net unrealized appreciation (depreciation) on investments
   
(573
)
     
(586
)
     
(569
)
     
(1,107
)
     
101
 
     
1,406
 
     
1,381
 
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
(657
)
     
(707
)
     
(1,482
)
     
(6,212
)
     
(861
)
     
(1,364
)
     
29
 
    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
   
$273
 
     
$2,328
 
     
$35,071
 
     
($3,757
)
     
($265
)
     
($1,364
)
     
$1,061
 
    
 
(1)
 
Formerly named Government Securities Variable Account.
 
See Notes to Financial Statements

8

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Blue
Chip Variable Account (1)
       
Aggressive Growth Variable Account (1)
       
Emerging Markets Variable Account
       
Diversified Research Variable Account
       
Small-Cap Equity Variable Account
       
International Large-Cap Variable Account
       
I-Net Tollkeeper Variable Account
       
Financial Services Variable Account (1)
  
    
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                                      
Net investment income
   
$26
 
              
$29
 
     
$20
 
     
$3,327
 
     
$316
 
              
$28
 
Net realized loss
from security transactions
   
(466
)
     
($238
)
     
(545
)
     
(374
)
     
(2,320
)
     
(2,355
)
     
($4,447
)
     
(216
)
Net unrealized appreciation
(depreciation) on investments
   
101
 
     
1,197
 
     
1,829
 
     
1,669
 
     
2,575
 
     
539
 
     
(1,119
)
     
390
 
    
Net Increase (Decrease) in Net Assets
Resulting from Operations
   
(339
)
     
959
 
     
1,313
 
     
1,315
 
     
3,582
 
     
(1,500
)
     
(5,566
)
     
202
 
    
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                      
Transfer of net premiums
   
10,047
 
     
2,384
 
     
7,554
 
     
19,529
 
     
21,338
 
     
30,965
 
     
7,231
 
     
3,913
 
Transfers between variable accounts, net
   
43,974
 
     
27,433
 
     
12,288
 
     
2,908
 
     
32,536
 
     
62,190
 
     
16,382
 
     
8,870
 
Transfers—policy charges and deductions
   
(3,364
)
     
(1,472
)
     
(2,850
)
     
(2,298
)
     
(7,035
)
     
(9,971
)
     
(3,594
)
     
(496
)
Transfers—other
   
(90
)
     
(10
)
     
(414
)
     
(4,976
)
     
(3,350
)
     
(3,342
)
     
(280
)
     
(1,240
)
    
Net Increase in Net Assets
Derived from Policy Transactions
   
50,567
 
     
28,335
 
     
16,578
 
     
15,163
 
     
43,489
 
     
79,842
 
     
19,739
 
     
11,047
 
    
NET INCREASE IN NET ASSETS
   
50,228
 
     
29,294
 
     
17,891
 
     
16,478
 
     
47,071
 
     
78,342
 
     
14,173
 
     
11,249
 
    
NET ASSETS
                                                                      
Beginning of Year
                     
1,631
 
     
894
 
     
4,691
 
     
6,676
 
     
8,479
 
         
    
End of Year
   
$50,228
 
     
$29,294
 
     
$19,522
 
     
$17,372
 
     
$51,762
 
     
$85,018
 
     
$22,652
 
     
$11,249
 
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

9

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Health Sciences Variable Account (1)
       
Technology Variable Account (1)
       
Telecom-
  munications Variable Account (1)
       
Multi-
Strategy Variable Account
     
Equity Income Variable Account
       
Strategic Value Variable Account (1)
     
Growth LT Variable Account
       
Focused
30
Variable Account (1)
  
    
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                                                  
Net investment income
                     
$10
 
     
$644
 
   
$855
 
     
$10
 
   
$11,777
 
         
Net realized loss
from security transactions
   
($7
)
     
($131
)
     
(482
)
     
(773
)
   
(1,532
)
     
(166
)
   
(13,067
)
     
($3
)
Net unrealized appreciation (depreciation) on investments
   
458
 
     
3,252
 
     
(47
)
     
843
 
   
5,961
 
     
368
 
   
(14,371
)
     
20
 
    
Net Increase (Decrease) in Net Assets Resulting from Operations
   
451
 
     
3,121
 
     
(519
)
     
714
 
   
5,284
 
     
212
 
   
(15,661
)
     
17
 
    
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS
                                                                  
Transfer of net premiums
   
6,128
 
     
3,234
 
     
2,602
 
     
17,054
 
   
37,120
 
     
2,762
 
   
32,392
 
     
122
 
Transfers between variable accounts, net
   
10,976
 
     
22,506
 
     
10,438
 
     
21,254
 
   
97,759
 
     
4,940
 
   
116,641
 
     
177
 
Transfers—policy charges and deductions
   
(1,136
)
     
(1,116
)
     
(482
)
     
(4,543
)
   
(8,561
)
     
(1,613
)
   
(20,604
)
     
(106
)
Transfers—other
   
(1,195
)
     
(372
)
     
(1,225
)
     
(4,035
)
   
(4,451
)
     
55
 
   
(1,745
)
     
1
 
    
Net Increase in Net Assets Derived from Policy Transactions
   
14,773
 
     
24,252
 
     
11,333
 
     
29,730
 
   
121,867
 
     
6,144
 
   
126,684
 
     
194
 
    
NET INCREASE IN NET ASSETS
   
15,224
 
     
27,373
 
     
10,814
 
     
30,444
 
   
127,151
 
     
6,356
 
   
111,023
 
     
211
 
    
NET ASSETS
                                                                  
Beginning of Year
                              
9,751
 
   
7,631
 
            
18,880
 
         
    
End of Year
   
$15,224
 
     
$27,373
 
     
$10,814
 
     
$40,195
 
   
$134,782
 
     
$6,356
 
   
$129,903
 
     
$211
 
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

10

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
 
   
Mid-Cap Value Variable Account
       
International Value Variable Account
       
Capital Opportunities Variable Account (1)
       
Mid-Cap Growth Variable Account (1)
       
Global Growth Variable Account (1)
     
Equity Index Variable Account
       
Small-Cap Index Variable Account
     
REIT Variable Account
  
   
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                                                 
Net investment income
  
$1,518
 
     
$1,070
 
     
$35
 
                     
$1,536
 
     
$1,460
 
   
$762
 
Net realized loss
from security transactions
  
(979
)
     
(1,735
)
     
(320
)
     
($98
)
     
($11
)
   
(1,660
)
     
(1,606
)
   
(115
)
Net unrealized appreciation (depreciation) on investments
  
7,276
 
     
(1,930
)
     
2,409
 
     
1,170
 
     
242
 
   
(3,433
)
     
(141
)
   
1,331
 
   
Net Increase (Decrease) in Net Assets Resulting from Operations
  
7,815
 
     
(2,595
)
     
2,124
 
     
1,072
 
     
231
 
   
(3,557
)
     
(287
)
   
1,978
 
   
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS
                                                                 
Transfer of net premiums
  
42,478
 
     
29,817
 
     
1,296
 
     
3,740
 
     
136
 
   
55,114
 
     
3,694
 
   
9,058
 
Transfers between variable accounts, net
  
60,725
 
     
91,778
 
     
27,830
 
     
15,222
 
     
9,577
 
   
149,665
 
     
22,589
 
   
22,464
 
Transfers—policy charges and deductions
  
(22,081
)
     
(9,224
)
     
(975
)
     
(986
)
     
(130
)
   
(13,928
)
     
(11,294
)
   
(3,472
)
Transfers—other
  
(4,558
)
     
(64
)
     
(27
)
     
(1,242
)
            
(330
)
     
34
 
   
(621
)
   
Net Increase in Net Assets Derived from Policy Transactions
  
76,564
 
     
112,307
 
     
28,124
 
     
16,734
 
     
9,583
 
   
190,521
 
     
15,023
 
   
27,429
 
   
NET INCREASE IN NET ASSETS
  
84,379
 
     
109,712
 
     
30,248
 
     
17,806
 
     
9,814
 
   
186,964
 
     
14,736
 
   
29,407
 
   
NET ASSETS
                                                                 
Beginning of Year
  
5,701
 
     
10,226
 
                              
16,708
 
     
3,270
 
   
691
 
   
End of Year
  
$90,080
 
     
$119,938
 
     
$30,248
 
     
$17,806
 
     
$9,814
 
   
$203,672
 
     
$18,006
 
   
$30,098
 
   
 
(1) 
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

11

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
 
    
Inflation Managed Variable Account (1)
       
Managed Bond Variable Account
       
Money Market Variable Account
       
High Yield Bond Variable Account
       
Equity Variable Account
       
Aggressive Equity Variable Account
       
Large-Cap Value Variable Account
  
    
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                                             
Net investment income
   
$930
 
     
$3,035
 
     
$36,553
 
     
$2,455
 
     
$596
 
              
$1,032
 
Net realized loss
from security transactions
   
(84
)
     
(121
)
     
(913
)
     
(5,105
)
     
(962
)
     
($2,770
)
     
(1,352
)
Net unrealized appreciation (depreciation) on investments
   
(573
)
     
(586
)
     
(569
)
     
(1,107
)
     
101
 
     
1,406
 
     
1,381
 
    
Net Increase (Decrease) in Net Assets Resulting from Operations
   
273
 
     
2,328
 
     
35,071
 
     
(3,757
)
     
(265
)
     
(1,364
)
     
1,061
 
    
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS
                                                             
Transfer of net premiums
   
15,084
 
     
33,899
 
     
2,387,418
 
     
3,994
 
     
9,944
 
     
19,469
 
     
40,885
 
Transfers between variable accounts, net
   
53,395
 
     
114,499
 
     
(1,178,044
)
     
38,759
 
     
11,433
 
     
28,867
 
     
37,756
 
Transfers—policy charges and deductions
   
(7,000
)
     
(10,690
)
     
(155,812
)
     
(12,112
)
     
(2,967
)
     
(13,350
)
     
(17,795
)
Transfers—other
   
(14
)
     
(726
)
     
(5,845
)
     
7
 
     
40
 
     
(764
)
     
(2,430
)
    
Net Increase in Net Assets Derived from Policy Transactions
   
61,465
 
     
136,982
 
     
1,047,717
 
     
30,648
 
     
18,450
 
     
34,222
 
     
58,416
 
    
NET INCREASE IN NET ASSETS
   
61,738
 
     
139,310
 
     
1,082,788
 
     
26,891
 
     
18,185
 
     
32,858
 
     
59,477
 
    
NET ASSETS
                                                             
Beginning of Year
   
11,748
 
     
7,080
 
     
105,137
 
     
4,000
 
     
1,226
 
     
2,892
 
     
16,132
 
    
End of Year
   
$73,486
 
     
$146,390
 
     
$1,187,925
 
     
$30,891
 
     
$19,411
 
     
$35,750
 
     
$75,609
 
    
 
(1)
 
Formerly named Government Securities Variable Account.
 
See Notes to Financial Statements

12

PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIODS ENDED DECEMBER 31, 2000
 
   
Emerging Markets Variable Account
     
Diversified Research Variable Account
     
Small-Cap Equity Variable Account
     
International Large-Cap Variable Account
     
I-Net Tollkeeper Variable Account
    
Multi-
Strategy Variable Account
    
Equity Income Variable Account
    
Growth LT Variable Account
    
Mid-Cap Value Variable Account
     
International Value Variable Account
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                                 
Net investment income
         
$1
 
   
$13
 
   
$5
 
         
$47
 
  
$11
 
  
$40
 
  
$12
 
   
$15
 
Net realized gain (loss)
from security transactions
  
($226
)
          
(72
)
   
(70
)
   
($66
)
  
(6
)
        
(111
)
  
7
 
   
(116
)
Net unrealized appreciation
(depreciation) on investments
  
(109
)
   
24
 
   
(330
)
   
(217
)
   
(2,698
)
  
(285
)
  
(98
)
  
(3,342
)
  
284
 
   
214
 
   
Net Increase (Decrease) in Net Assets
Resulting from Operations
  
(335
)
   
25
 
   
(389
)
   
(282
)
   
(2,764
)
  
(244
)
  
(87
)
  
(3,413
)
  
303
 
   
113
 
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                 
Transfer of net premiums
  
138
 
          
281
 
   
281
 
         
56
 
        
820
 
  
140
 
   
688
 
Transfers between variable accounts, net
  
2,049
 
   
885
 
   
5,112
 
   
7,166
 
   
11,501
 
  
10,124
 
  
7,938
 
  
22,441
 
  
5,713
 
   
10,033
 
Transfers—policy charges and deductions
  
(241
)
   
(16
)
   
(342
)
   
(538
)
   
(258
)
  
(184
)
  
(220
)
  
(902
)
  
(430
)
   
(639
)
Transfers—other
  
20
 
          
29
 
   
49
 
         
(1
)
        
(66
)
  
(25
)
   
31
 
   
Net Increase in Net Assets
Derived from Policy Transactions
  
1,966
 
   
869
 
   
5,080
 
   
6,958
 
   
11,243
 
  
9,995
 
  
7,718
 
  
22,293
 
  
5,398
 
   
10,113
 
   
NET INCREASE IN NET ASSETS
  
1,631
 
   
894
 
   
4,691
 
   
6,676
 
   
8,479
 
  
9,751
 
  
7,631
 
  
18,880
 
  
5,701
 
   
10,226
 
   
NET ASSETS
                                                                 
Beginning of Period
                                                                 
   
End of Period
  
$1,631
 
   
$894
 
   
$4,691
 
   
$6,676
 
   
$8,479
 
  
$9,751
 
  
$7,631
 
  
$18,880
 
  
$5,701
 
   
$10,226
 
   
 
See Notes to Financial Statements (This Separate Account commenced operations on August 15, 2000)

13

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIODS ENDED DECEMBER 31, 2000
 
   
Equity Index Variable Account
     
Small-Cap Index Variable Account
     
REIT Variable Account
     
Inflation Managed Variable Account (1)
     
Managed Bond Variable Account
    
Money Market Variable Account
     
High Yield Bond Variable Account
     
Equity Variable Account
     
Aggressive Equity Variable Account
     
Large-Cap Value Variable Account
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                                    
Net investment income
  
$29
 
   
$22
 
   
$9
 
   
$105
 
   
$119
 
  
$2,106
 
   
$75
 
                 
$80
 
Net realized gain (loss)
from security transactions
  
(9
)
   
(73
)
          
2
 
   
9
 
  
(271
)
   
(6
)
   
($6
)
   
($59
)
   
(73
)
Net unrealized appreciation
(depreciation) on investments
  
(844
)
   
25
 
   
18
 
   
137
 
   
71
 
  
(117
)
   
(61
)
   
(114
)
   
(359
)
   
420
 
   
Net Increase (Decrease) in Net Assets
Resulting from Operations
  
(824
)
   
(26
)
   
27
 
   
244
 
   
199
 
  
1,718
 
   
8
 
   
(120
)
   
(418
)
   
427
 
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                    
Transfer of net premiums
  
211
 
   
275
 
                 
688
 
  
272,763
 
   
278
 
                 
413
 
Transfers between variable accounts, net
  
17,658
 
   
3,255
 
   
736
 
   
11,821
 
   
6,429
 
  
(148,228
)
   
3,875
 
   
1,482
 
   
3,675
 
   
16,334
 
Transfers—policy charges and deductions
  
(338
)
   
(168
)
   
(72
)
   
(317
)
   
(235
)
  
(21,135
)
   
(159
)
   
(137
)
   
(374
)
   
(1,034
)
Transfers—other
  
1
 
   
(66
)
                 
(1
)
  
19
 
   
(2
)
   
1
 
   
9
 
   
(8
)
   
Net Increase in Net Assets
Derived from Policy Transactions
  
17,532
 
   
3,296
 
   
664
 
   
11,504
 
   
6,881
 
  
103,419
 
   
3,992
 
   
1,346
 
   
3,310
 
   
15,705
 
   
NET INCREASE IN NET ASSETS
  
16,708
 
   
3,270
 
   
691
 
   
11,748
 
   
7,080
 
  
105,137
 
   
4,000
 
   
1,226
 
   
2,892
 
   
16,132
 
   
NET ASSETS
                                                                    
Beginning of Period
                                                                    
   
End of Period
  
$16,708
 
   
$3,270
 
   
$691
 
   
$11,748
 
   
$7,080
 
  
$105,137
 
   
$4,000
 
   
$1,226
 
   
$2,892
 
   
$16,132
 
   
 
(1)
 
Formerly named Government Securities Variable Account.
 
See Notes to Financial Statements (This Separate Account commenced operations on August 15, 2000)

14

PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
 

 
1. SIGNIFICANT ACCOUNTING POLICIES
 
The Pacific Select Exec Separate Account (the “Separate Account”) is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and as of December 31, 2001 is comprised of thirty-one subaccounts called Variable Accounts: the Blue Chip, Aggressive Growth, Emerging Markets, Diversified Research, Small-Cap Equity, International Large-Cap, I-Net Tollkeeper, Financial Services, Health Sciences, Technology, Telecommunications, Multi-Strategy, Equity Income, Strategic Value, Growth LT, Focused 30, Mid-Cap Value, International Value, Capital Opportunities, Mid-Cap Growth, Global Growth, Equity Index, Small-Cap Index, REIT, Inflation Managed (formerly Government Securities), Managed Bond, Money Market, High Yield Bond, Equity, Aggressive Equity, and Large-Cap Value Variable Accounts. The assets in each Variable Account are invested in shares of the corresponding portfolios of Pacific Select Fund (the “Fund”), each of which pursues different investment objectives and policies. The financial statements of the Fund, including the schedules of investments, are provided separately and should be read in conjunction with the Separate Account’s financial statements.
 
The Separate Account has organized and registered with the Securities and Exchange Commission (SEC) nine new Variable Accounts which commenced operations in 2001: the Blue Chip, Aggressive Growth, Financial Services, Health Sciences, Technology, Telecommunications, Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts. The Blue Chip, Aggressive Growth, and Capital Opportunities Variable Accounts commenced operations on May 1, 2001; the Financial Services, Health Sciences, Technology, and Telecommunications Variable Accounts commenced operations on May 23, 2001; the Global Growth Variable Account commenced operations on June 14, 2001; and the Mid-Cap Growth commenced operations on July 9, 2001. The Strategic Value and Focused 30 Variable Accounts, which commenced operations on February 27, 2001 and May 23, 2001, respectively, were organized and registered with the SEC in 2000.
 
The Separate Account was established by Pacific Life & Annuity Company (“PL&A”), a wholly-owned subsidiary of Pacific Life Insurance Company (“Pacific Life”), on September 24, 1998 and commenced operations on August 15, 2000. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the other assets and liabilities of PL&A. The assets of the Separate Account will not be charged with any liabilities arising out of any other business conducted by PL&A, but the obligations of the Separate Account, including benefits related to variable life insurance, are obligations of PL&A.
 
 
The Separate Account held by PL&A represents funds from individual flexible premium variable life policies. The assets of the Separate Account are carried at market value.
 
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for investment companies which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
 
A. Valuation of Investments
 
Investments in shares of the Fund are valued at the reported net asset values of the respective portfolios. Valuation of securities held by the Fund is discussed in the notes to its financial statements.
 
B. Security Transactions and Investment Income
 
Transactions are recorded on the trade date. Realized gains and losses on sales of investments are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date.
 
C. Federal Income Taxes
 
The operations of the Separate Account will be reported on the Federal income tax return of PL&A, which is taxed as a life insurance company under the provisions of the Tax Reform Act of 1986. Under current tax law, no Federal income taxes are expected to be paid by PL&A with respect to the operations of the Separate Account.
 
2. DIVIDENDS
 
During 2001, the Fund declared dividends for each portfolio, except for the Aggressive Growth, I-Net Tollkeeper, Health Sciences, Technology, Mid-Cap Growth, Global Growth, and Aggressive Equity Portfolios. The amounts accrued by the Separate Account for its share of the dividends were reinvested in additional full and fractional shares of the related portfolios.
 
3. CHARGES AND EXPENSES
 
With respect to variable life insurance policies funded by the Separate Account, PL&A makes certain deductions from premiums for sales load and state premium taxes before amounts are allocated to the Separate Account. PL&A also makes certain deductions from the net assets of each Variable Account for the mortality and expense risks PL&A assumes, administrative expenses, cost of insurance, charges for optional benefits and any sales and underwriting surrender charges. The operating expenses of the Separate Account are paid by PL&A.            
 
4. RELATED PARTY AGREEMENT
 
Pacific Select Distributors, Inc., a wholly-owned subsidiary of Pacific Life, serves as principal underwriter of variable life insurance policies funded by interests in the Separate Account, without remuneration from the Separate Account.

15

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
 
5.  SEPARATE ACCOUNT’S COST OF INVESTMENTS IN THE FUND SHARES            
 
The investment in the Fund shares are carried at identified cost, which represents the amount available for investment (including reinvested distributions of net investment income and realized gains). A reconciliation of total cost and market value of the Separate Account’s investments in the Fund as of December 31, 2001 were as follows:
 
    
Variable Accounts
  
    
    
Blue
Chip (1)
     
Aggressive
Growth (1)
    
Emerging
Markets
   
Diversified
Research
    
Small-Cap
Equity
    
International
Large-Cap
    
I-Net
Tollkeeper
  
    
Total cost of investments at beginning of year
                
$1,741
   
$870
 
  
$5,020
 
  
$6,892
 
  
$11,177
 
Add:  Total net proceeds from policy transactions
   
$53,500
 
   
$30,171
 
  
19,297
   
23,193
 
  
60,166
 
  
90,192
 
  
28,558
 
Reinvested distributions from the Funds:
                                           
(a) Net investment income
   
26
 
         
29
   
20
 
  
215
 
  
316
 
      
(b) Net realized gain
                           
3,112
 
            
    
Sub-Total
   
53,526
 
   
30,171
 
  
21,067
   
24,083
 
  
68,513
 
  
97,400
 
  
39,735
 
Less:  Cost of investments disposed during the year
   
3,399
 
   
2,074
 
  
3,264
   
8,404
 
  
18,997
 
  
12,705
 
  
13,266
 
    
Total cost of investments at end of year
   
50,127
 
   
28,097
 
  
17,803
   
15,679
 
  
49,516
 
  
84,695
 
  
26,469
 
Add:  Unrealized appreciation (depreciation)
   
101
 
   
1,197
 
  
1,719
   
1,693
 
  
2,246
 
  
323
 
  
(3,817
)
    
Total market value of investments at end of year
   
$50,228
 
   
$29,294
 
  
$19,522
   
$17,372
 
  
$51,762
 
  
$85,018
 
  
$22,652
 
    
    
Financial
Services (1)
     
Health
Sciences (1)
    
Tech-
nology (1)
   
Telecom-
munications (1)
    
Multi-
Strategy
    
Equity
Income
    
Strategic
Value (1)
  
    
Total cost of investments at beginning of year
                           
$10,036
 
  
$7,729
 
      
Add:  Total net proceeds from policy transactions
   
$12,868
 
   
$16,810
 
  
$25,354
   
$13,284
 
  
38,293
 
  
137,104
 
  
$7,781
 
Reinvested distributions from the Funds:
                                           
(a) Net investment income
   
28
 
              
10
 
  
604
 
  
613
 
  
10
 
(b) Net realized gain
                           
40
 
  
242
 
      
    
Sub-Total
   
12,896
 
   
16,810
 
  
25,354
   
13,294
 
  
48,973
 
  
145,688
 
  
7,791
 
Less:  Cost of investments disposed during the year
   
2,037
 
   
2,044
 
  
1,233
   
2,433
 
  
9,336
 
  
16,769
 
  
1,803
 
    
Total cost of investments at end of year
   
10,859
 
   
14,766
 
  
24,121
   
10,861
 
  
39,637
 
  
128,919
 
  
5,988
 
Add:  Unrealized appreciation (depreciation)
   
390
 
   
458
 
  
3,252
   
(47
)
  
558
 
  
5,863
 
  
368
 
    
Total market value of investments at end of year
   
$11,249
 
   
$15,224
 
  
$27,373
   
$10,814
 
  
$40,195
 
  
$134,782
 
  
$6,356
 
    
    
Growth
    LT
     
Focused
30 (1)
    
Mid-Cap
Value
   
Inter-
national
Value
    
Capital
Opportuni-
ties (1) 
    
Mid-Cap
Growth (1)
    
Global
Growth (1)
  
    
Total cost of investments at beginning of year
   
$22,221
 
         
$5,417
   
$10,012
 
                  
Add:  Total net proceeds from policy transactions
   
162,724
 
   
$290
 
  
98,645
   
122,438
 
  
$29,629
 
  
$19,332
 
  
$9,684
 
Reinvested distributions from the Funds:
                                           
(a) Net investment income
   
763
 
         
475
   
605
 
  
35
 
            
(b) Net realized gain
   
11,014
 
         
1,043
   
465
 
                  
    
Sub-Total
   
196,722
 
   
290
 
  
105,580
   
133,520
 
  
29,664
 
  
19,332
 
  
9,684
 
Less:  Cost of investments disposed during the year
   
49,107
 
   
99
 
  
23,060
   
11,866
 
  
1,825
 
  
2,696
 
  
112
 
    
Total cost of investments at end of year
   
147,615
 
   
191
 
  
82,520
   
121,654
 
  
27,839
 
  
16,636
 
  
9,572
 
Add:  Unrealized appreciation (depreciation)
   
(17,712
)
   
20
 
  
7,560
   
(1,716
)
  
2,409
 
  
1,170
 
  
242
 
    
Total market value of investments at end of year
   
$129,903
 
   
$211
 
  
$90,080
   
$119,938
 
  
$30,248
 
  
$17,806
 
  
$9,814
 
    
    
Equity
Index
     
Small-Cap
Index
    
REIT
   
Inflation
Managed (2)
    
Managed
Bond
    
Money
Market
    
High Yield
Bond
  
    
Total cost of investments at beginning of year
   
$17,552
 
   
$3,247
 
  
$674
   
$11,611
 
  
$7,009
 
  
$105,252
 
  
$4,061
 
Add:  Total net proceeds from policy transactions
   
237,263
 
   
25,815
 
  
34,516
   
70,677
 
  
148,582
 
  
1,909,350
 
  
75,918
 
Reinvested distributions from the Funds:
                                           
(a) Net investment income
   
1,235
 
   
148
 
  
722
   
930
 
  
3,035
 
  
36,553
 
  
2,455
 
(b) Net realized gain
   
301
 
   
1,312
 
  
40
                         
    
Sub-Total
   
256,351
 
   
30,522
 
  
35,952
   
83,218
 
  
158,626
 
  
2,051,155
 
  
82,434
 
Less:  Cost of investments disposed during the year
   
48,402
 
   
12,398
 
  
7,202
   
9,296
 
  
11,721
 
  
862,546
 
  
50,375
 
    
Total cost of investments at end of year
   
207,949
 
   
18,124
 
  
28,750
   
73,922
 
  
146,905
 
  
1,188,609
 
  
32,059
 
Add:  Unrealized appreciation (depreciation)
   
(4,277
)
   
(118
)
  
1,348
   
(436
)
  
(515
)
  
(684
)
  
(1,168
)
    
Total market value of investments at end of year
   
$203,672
 
   
$18,006
 
  
$30,098
   
$73,486
 
  
$146,390
 
  
$1,187,925
 
  
$30,891
 
    
 
(1)
 
Operations commenced during 2001 (See Note 1 to Financial Statements).            
(2)
 
Inflation Managed Variable Account was formerly named Government Securities Variable Account.

16

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
 
    
Variable Accounts
                              
    
                           
    
Equity
     
Aggressive
Equity
     
Large-Cap
Value
                              
    
                           
Total cost of investments at beginning of year
   
$1,340
 
   
$3,250
 
   
$15,711
 
                            
Add:  Total net proceeds from policy transactions
   
22,935
 
   
48,050
 
   
75,737
 
                            
Reinvested distributions from the Funds:
                                                 
(a) Net investment income
   
10
 
          
373
 
                            
(b) Net realized gain
   
586
 
          
659
 
                            
    
                           
Sub-Total
   
24,871
 
   
51,300
 
   
92,480
 
                            
Less:  Cost of investments disposed during the year
   
5,447
 
   
16,598
 
   
18,673
 
                            
    
                           
Total cost of investments at end of year
   
19,424
 
   
34,702
 
   
73,807
 
                            
Add:  Unrealized appreciation (depreciation)
   
(13
)
   
1,048
 
   
1,802
 
                            
    
                           
Total market value of investments at end of year
   
$19,411
 
   
$35,750
 
   
$75,609
 
                            
    
                           
 
6.  TRANSACTIONS IN SEPARATE ACCOUNT UNITS
 
Transactions in Separate Account units for the year ended December 31, 2001 were as follows:
 
    
Variable Accounts
  
    
    
Blue
Chip (1)
     
Aggressive
Growth (1)
     
Emerging
Markets
     
Diversified
Research
     
Small-Cap Equity
     
International
Large-Cap
     
I-Net
Tollkeeper
  
    
Total units outstanding at beginning of year
                 
199
 
   
84
 
   
574
 
   
725
 
   
1,149
 
Increase (decrease) in units resulting from
policy transactions:
                                                 
(a) Transfer of net premiums
   
1,203
 
   
274
 
   
1,220
 
   
2,083
 
   
3,037
 
   
4,309
 
   
1,842
 
(b) Transfers between variable accounts, net
   
5,019
 
   
3,264
 
   
1,653
 
   
278
 
   
4,268
 
   
8,093
 
   
2,506
 
(c) Transfers—policy charges and deductions
   
(397
)
   
(176
)
   
(398
)
   
(232
)
   
(936
)
   
(1,333
)
   
(854
)
(d) Transfers—other
   
(3
)
   
(1
)
   
(62
)
   
(532
)
   
(444
)
   
(493
)
   
(1
)
    
Sub-Total
   
5,822
 
   
3,361
 
   
2,413
 
   
1,597
 
   
5,925
 
   
10,576
 
   
3,493
 
    
Total units outstanding at end of year
   
5,822
 
   
3,361
 
   
2,612
 
   
1,681
 
   
6,499
 
   
11,301
 
   
4,642
 
    
    
Financial
Services (1)
     
Health
Sciences (1)
     
Tech-
nology (1)
     
Telecom-
munications (1)
     
Multi-
Strategy
     
Equity
Income
     
Strategic
Value (1)
  
    
Total units outstanding at beginning of year
                               
999
 
   
770
 
       
Increase (decrease) in units resulting from
policy transactions:
                                                 
(a) Transfer of net premiums
   
461
 
   
632
 
   
540
 
   
463
 
   
1,860
 
   
4,426
 
   
354
 
(b) Transfers between variable accounts, net
   
958
 
   
1,123
 
   
3,462
 
   
1,560
 
   
2,219
 
   
11,231
 
   
564
 
(c) Transfers—policy charges and deductions
   
(56
)
   
(114
)
   
(171
)
   
(79
)
   
(479
)
   
(962
)
   
(187
)
(d)Transfers—other
   
(151
)
   
(131
)
   
(62
)
   
(236
)
   
(431
)
   
(532
)
       
    
Sub-Total
   
1,212
 
   
1,510
 
   
3,769
 
   
1,708
 
   
3,169
 
   
14,163
 
   
731
 
    
Total units outstanding at end of year
   
1,212
 
   
1,510
 
   
3,769
 
   
1,708
 
   
4,168
 
   
14,933
 
   
731
 
    
    
Growth
LT
     
Focused
30 (1)
     
Mid-Cap
Value
     
Inter-
national
Value
     
Capital
Opportuni-   ties (1)
     
Mid-Cap
Growth (1)
     
Global
Growth (1)
  
    
Total units outstanding at beginning of year
   
2,364
 
          
532
 
   
1,055
 
                     
Increase (decrease) in units resulting from
policy transactions:
                                                 
(a) Transfer of net premiums
   
5,711
 
   
13
 
   
3,885
 
   
4,018
 
   
163
 
   
485
 
   
15
 
(b) Transfers between variable accounts, net
   
18,777
 
   
19
 
   
5,400
 
   
11,939
 
   
3,624
 
   
1,762
 
   
1,077
 
(c) Transfers—policy charges and deductions
   
(3,384
)
   
(11
)
   
(1,965
)
   
(1,177
)
   
(126
)
   
(119
)
   
(15
)
(d) Transfers—other
   
(383
)
          
(432
)
   
(3
)
   
(1
)
   
(163
)
   
1
 
    
Sub-Total
   
20,721
 
   
21
 
   
6,888
 
   
14,777
 
   
3,660
 
   
1,965
 
   
1,078
 
    
Total units outstanding at end of year
   
23,085
 
   
21
 
   
7,420
 
   
15,832
 
   
3,660
 
   
1,965
 
   
1,078
 
    
 
(1)
 
Operations commenced during 2001 (See Note 1 to Financial Statements).

17

 
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
 
    
Equity
Index
       
Small-Cap Index
       
REIT
     
Inflation
Managed (1)
     
Managed Bond
       
Money
Market
       
High Yield Bond
  
    
Total units outstanding at beginning of year
   
1,813
 
     
328
 
     
66
 
   
1,146
 
   
688
 
     
10,268
 
     
416
 
Increase (decrease) in units resulting from
policy transactions:
                                                         
(a) Transfer of net premiums
   
6,500
 
     
423
 
     
862
 
   
1,406
 
   
3,097
 
     
222,028
 
     
411
 
(b) Transfers between variable accounts, net
   
18,549
 
     
2,204
 
     
2,104
 
   
4,984
 
   
10,507
 
     
(105,022
)
     
3,574
 
(c) Transfers—policy charges and deductions
   
(1,710
)
     
(1,178
)
     
(323
)
   
(659
)
   
(979
)
     
(14,849
)
     
(1,230
)
(d) Transfers—other
                     
(50
)
          
(64
)
     
(727
)
         
    
Sub-Total
   
23,339
 
     
1,449
 
     
2,593
 
   
5,731
 
   
12,561
 
     
101,430
 
     
2,755
 
    
Total units outstanding at end of year
   
25,152
 
     
1,777
 
     
2,659
 
   
6,877
 
   
13,249
 
     
111,698
 
     
3,171
 
    
    
Equity
       
Aggressive Equity
       
Large-Cap
Value
                                  
    
                               
Total units outstanding at beginning of year
   
136
 
     
344
 
     
1,587
 
                                
Increase (decrease) in units resulting from
policy transactions:
                                                         
(a) Transfer of net premiums
   
1,479
 
     
3,076
 
     
4,442
 
                                
(b) Transfers between variable accounts, net
   
1,540
 
     
3,799
 
     
3,792
 
                                
(c) Transfers—policy charges and deductions
   
(411
)
     
(1,954
)
     
(1,821
)
                                
(d) Transfers—other
            
(127
)
     
(281
)
                                
    
                               
Sub-Total
   
2,608
 
     
4,794
 
     
6,132
 
                                
    
                               
Total units outstanding at end of year
   
2,744
 
     
5,138
 
     
7,719
 
                                
    
                               
7. FINANCIAL HIGHLIGHTS
Selected accumulation unit value (AUV), total units outstanding, total net assets, ratios of investment income to average daily net assets, and total returns as of December 31, 2001 were as follows:
Variable Accounts
     
AUV
at
End
of Year
     
Number
of
Units
Outstanding
  
Total
Net
Assets
     
Ratios of
Investment
Income to
Average Net
Assets
  
Total
Returns (2)
Blue Chip (3)
     
$8.63
     
5,822
  
$50,228
     
0.23%
  
(12.52%)
Aggressive Growth (3)
     
8.72
     
3,361
  
29,294
     
0.00%
  
(11.78%)
Emerging Markets
     
7.47
     
2,612
  
19,522
     
0.38%
  
(9.32%)
Diversified Research
     
10.33
     
1,681
  
17,372
     
0.36%
  
(2.05%)
Small-Cap Equity
     
7.96
     
6,499
  
51,762
     
13.92%
  
(1.75%)
International Large-Cap
     
7.52
     
11,301
  
85,018
     
0.86%
  
(18.63%)
I-Net Tollkeeper
     
4.88
     
4,642
  
22,652
     
0.00%
  
(32.93%)
Financial Services (3)
     
9.28
     
1,212
  
11,249
     
1.15%
  
(6.93%)
Health Sciences (3)
     
10.08
     
1,510
  
15,224
     
0.00%
  
2.05%
Technology (3)
     
7.26
     
3,769
  
27,373
     
0.00%
  
(25.70%)
Telecommunications (3)
     
6.33
     
1,708
  
10,814
     
0.49%
  
(36.10%)
Multi-Strategy
     
9.64
     
4,168
  
40,195
     
2.73%
  
(0.79%)
Equity Income
     
9.03
     
14,933
  
134,782
     
1.94%
  
(7.87%)
Strategic Value
     
8.69
     
731
  
6,356
     
0.65%
  
(12.47%)
Growth LT
     
5.63
     
23,085
  
129,903
     
16.76%
  
(28.84%)
Focused 30
     
10.05
     
21
  
211
     
0.00%
  
0.59%
Mid-Cap Value
     
12.14
     
7,420
  
90,080
     
3.38%
  
13.93%
International Value
     
7.58
     
15,832
  
119,938
     
2.39%
  
(22.30%)
Capital Opportunities (3)
     
8.26
     
3,660
  
30,248
     
0.53%
  
(16.62%)
Mid-Cap Growth (3)
     
9.06
     
1,965
  
17,806
     
0.00%
  
(8.34%)
Global Growth (3)
     
9.11
     
1,078
  
9,814
     
0.00%
  
(8.61%)
Equity Index
     
8.10
     
25,152
  
203,672
     
1.50%
  
(11.18%)
Small-Cap Index
     
10.13
     
1,777
  
18,006
     
10.34%
  
2.78%
REIT
     
11.32
     
2,659
  
30,098
     
6.56%
  
8.79%
Inflation Managed (1)
     
10.69
     
6,877
  
73,486
     
3.23%
  
4.28%
Managed Bond
     
11.05
     
13,249
  
146,390
     
5.42%
  
6.65%
Money Market
     
10.64
     
111,698
  
1,187,925
     
3.59%
  
3.85%
High Yield Bond
     
9.74
     
3,171
  
30,891
     
9.15%
  
1.17%
Equity
     
7.07
     
2,744
  
19,411
     
7.41%
  
(20.84%)
Aggressive Equity
     
6.96
     
5,138
  
35,750
     
0.00%
  
(16.90%)
Large-Cap Value
     
9.79
     
7,719
  
75,609
     
2.97%
  
(3.04%)
 
(1)
 
Inflation Managed Variable Account was formerly named Government Securities Variable Account.
(2)
 
Total returns do not include deductions at the separate account or contract level for any mortality and expense risk charges, cost of insurance charges, premium loads, administrative charges, maintenance fees, premium tax charges, surrender charges or other charges that may be incurred under a contract, which, if incurred, would have resulted in lower returns. Total returns are not annualized for periods of less than one full year.
(3)
 
Variable Accounts commenced operations during 2001 (See Note 1 to Financial Statements). The ratios of investment income to average daily net assets are annualized.

18

INDEPENDENT AUDITORS’ REPORT
 
The Board of Directors
Pacific Life & Annuity Company:
 
We have audited the accompanying statement of assets and liabilities of Pacific Select Exec Separate Account (the “Separate Account”) (comprised of Blue Chip, Aggressive Growth, Emerging Markets, Diversified Research, Small-Cap Equity, International Large-Cap, I-Net Tollkeeper, Financial Services, Health Sciences, Technology, Telecommunications, Multi-Strategy, Equity Income, Strategic Value, Growth LT, Focused 30, Mid-Cap Value, International Value, Capital Opportunities, Mid-Cap Growth, Global Growth, Equity Index, Small-Cap Index, REIT, Inflation Managed, Managed Bond, Money Market, High Yield Bond, Equity, Aggressive Equity, and Large-Cap Value Variable Accounts) as of December 31, 2001 and the related statement of operations and financial highlights for the year then ended (as to the Blue Chip, Aggressive Growth, Financial Services, Health Sciences, Technology, Telecommunications, Strategic Value, Focused 30, Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts, for each of the periods from commencement of operations through December 31, 2001), and the statement of changes in net assets for each of the two years in the period then ended (as to the Emerging Markets, Diversified Research, Small-Cap Equity, International Large-Cap, I-Net Tollkeeper, Multi-Strategy, Equity Income, Growth LT, Mid-Cap Value, International Value, Equity Index, Small-Cap Index, REIT, Inflation Managed, Managed Bond, Money Market, High Yield Bond, Equity, Aggressive Equity, and Large-Cap Value Variable Accounts, for the year ended December 31, 2001 and for each of the periods from commencement of operations through December 31, 2000, and as to the Blue Chip, Aggressive Growth, Financial Services, Health Sciences, Technology, Telecommunications, Strategic Value, Focused 30, Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts, for each of the periods from commencement of operations through December 31, 2001). These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2001. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement and financial highlights presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Variable Accounts constituting Pacific Select Exec Separate Account as of December 31, 2001 and the results of their operations, financial highlights, and the changes in their net assets for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America.
 
DELOITTE & TOUCHE LLP
 
Costa Mesa, California
February 8, 2002

19

Annual Report
as of December 31, 2001
 
• 
 
Pacific Select Exec
Separate Account of
Pacific Life & Annuity Company
 
Accountants
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626
 
Counsel
Dechert
1775 Eye Street, N.W.
Washington, D.C. 20006-2401
 
 
 
Pacific Life & Annuity Company
 
Client Services Department
 
Mailing Address:
 
700 Newport Center Drive
 
P.O. Box 7500
 
Newport Beach, California 92658-7500
 
 
ADDRESS SERVICE REQUESTED
 
 
Form No. 85-23210-01