N-Q 1 dnq.htm MONEY MARKET VARIABLE ACCOUNT N-Q MONEY MARKET VARIABLE ACCOUNT N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-03563

MONEY MARKET VARIABLE ACCOUNT

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

Registrant’s telephone number, including area code: (617) 954-5000

Date of fiscal year end: December 31

Date of reporting period: March 31, 2011

ITEM 1. SCHEDULE OF INVESTMENTS.

LOGO

 

PORTFOLIO OF INVESTMENTS 3/31/11 (unaudited)

Money Market Variable Account

 

Issuer

    Shares/Par      Value ($)  

CERTIFICATES OF DEPOSIT - 5.1%

   

   

Major Banks - 5.1%

      

Abbey National Treasury Services

      

PLC/US Branch, 0.3%, due 5/20/11

    $ 810,000       $ 810,000   

Bank of Montreal, 0.21%, due 4/15/11

      530,000         530,000   
           

Total Certificates of Deposit, at Cost and Value

   

    $ 1,340,000   
           

COMMERCIAL PAPER (y) - 52.4%

      

Consumer Products - 2.7%

  

   

Proctor & Gamble Co., 0.19%, due 6/02/11 (t)

    $ 713,000       $ 712,767   
           

Major Banks - 22.7%

      

Bank of America Corp., 0.24%, due 4/26/11

    $ 744,000       $ 743,876   

Barclays U.S. Funding Corp., 0.1%, due 4/01/11

      536,000         536,000   

BNP Paribas Finance, Inc., 0.36%, due 4/14/11

      836,000         835,891   

Credit Suisse First Boston, Inc., 0.22%, due 4/08/11

      441,000         440,981   

Credit Suisse First Boston, Inc., 0.26%, due 5/18/11

      360,000         359,878   

HSBC USA, Inc., 0.24%, due 4/15/11

      659,000         658,938   

JPMorgan Chase & Co., 0.23%, due 5/16/11

      843,000         842,758   

Toronto Dominion HDG USA, Inc., 0.23%, due 6/23/11 (t)

      807,000         806,572   

Westpac Banking Corp., 0.22%, due 5/24/11 (t)

      802,000         801,740   
           
      $ 6,026,634   
           

Network & Telecom - 3.0%

  

   

AT&T, Inc., 0.25%, due 4/25/11 (t)

    $ 811,000       $ 810,865   
           

Other Banks & Diversified Financials - 10.4%

   

   

Bank of Nova Scotia, 0.255%, due 5/18/11

    $ 280,000       $ 279,907   

Citigroup Funding, Inc., 0.3%, due 4/20/11

      828,000         827,869   

Rabobank USA Financial Corp., 0.3%, due 5/10/11

      844,000         843,726   

UBS Finance (Delaware) LLC, 0.255%, due 4/20/11

      828,000         827,889   
           
      $ 2,779,391   
           

Pharmaceuticals - 8.5%

      

Abbott Laboratories, 0.18%, due 4/18/11 (t)

    $ 810,000       $ 809,931   

Novartis Finance Corp., 0.18%, due 4/15/11 (t)

      630,000         629,956   

Sanofi-Aventis S.A., 0.28%, due 7/13/11 (t)

      809,000         808,352   
           
      $ 2,248,239   
           

Retailers - 3.1%

      

Wal-Mart Stores, Inc., 0.15%, due 4/06/11 (t)

    $ 817,000       $ 816,983   
           

Issuer

    Shares/Par      Value ($)  

COMMERCIAL PAPER (y) - continued

   

   

Tobacco - 2.0%

      

Philip Morris International, Inc., 0.18%, due 4/01/11 (t)

    $ 538,000       $ 538,000   
           

Total Commercial Paper, at Amortized Cost and Value

    

    $ 13,932,879   
           

U.S. GOVERNMENT AGENCIES AND EQUIVALENTS (y) - 33.7%

    

   

Fannie Mae, 0.175%, due 4/20/11 $

      825,000       $ 824,924   

Fannie Mae, 0.17%, due 7/01/11

      660,000         659,716   

Fannie Mae, 0.16%, due 9/01/11

      740,000         739,497   

Federal Home Loan Bank, 0.12%, due 4/20/11

      700,000         699,956   

Federal Home Loan Bank, 0.13%, due 5/25/11

      810,000         809,842   

Federal Home Loan Bank, 0.23%, due 6/01/11

      900,000         899,649   

Federal Home Loan Bank, 0.12%, due 6/15/11

      745,000         744,814   

Freddie Mac, 0.3%, due 4/26/11

      750,000         749,844   

Freddie Mac, 0.17%, due 5/02/11

      400,000         399,941   

Freddie Mac, 0.14%, due 5/23/11

      150,000         149,970   

Freddie Mac, 0.21%, due 6/07/11

      320,000         319,875   

Freddie Mac, 0.21%, due 7/26/11

      840,000         839,432   

Freddie Mac, 0.24%, due 8/16/11

      330,000         329,699   

Freddie Mac, 0.18%, due 9/15/11

      800,000         799,330   
           

Total U.S. Government Agencies and Equivalents, at Amortized Cost and Value

     

    $ 8,966,489   
           

FLOATING RATE DEMAND NOTES - 3.0%

   

   

East Baton Rouge, LA, Pollution Control Rev. (Exxon Mobil Corp.), 0.16%, due 4/01/11

      500,000       $ 500,000   

Lincoln County, WY, Pollution Control Rev. (Exxon Mobil Corp.), 0.16%, due 4/01/1

      300,000         300,000   
           

Total Floating Rate Demand Notes, at Cost and Value

   

    $ 800,000   
           

REPURCHASE AGREEMENTS - 6.8%

   

   

Goldman Sachs, 0.12%, dated 3/31/11, due 4/01/11, total to be received $1,812,006 (secured by U.S. Treasury and Federal Agency obligations valued at $1,848,240 in a jointly traded account), at Cost and Value

    $ 1,812,000       $ 1,812,000   
           

Total Investments, at Amortized Cost and Value

    

    $ 26,851,368   
           

OTHER ASSETS, LESS LIABILITIES - (1.0)%

   

      (264,898 ) 
           

NET ASSETS - 100.0%

  

    $ 26,586,470   
           

 

(t) Security exempt from registration with the U.S. Securities and Exchange Commission under Section 4(2) of the Securities Act of 1933.
(y) The rate shown represents an annualized yield at time of purchase.

The following abbreviations are used in this report and are defined:

 

PLC

    Public Limited Company

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

 

1

Money Market Variable Account

Supplemental Information (Unaudited) 3/31/11

(1) Investment Valuations

Pursuant to procedures approved by the Board of Trustees, investments held by the variable account are generally valued at amortized cost, which approximates market value. Amortized cost involves valuing an instrument at its cost as adjusted for amortization of premium or accretion of discount rather than its current market value. The amortized cost value of an instrument can be different from the market value of an instrument. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value.

Various inputs are used in determining the value of the variable account’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The variable account’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2011 in valuing the variable account’s assets or liabilities:

 

Investments at Value

    Level 1      Level 2      Level 3      Total  

Short Term Securities

      —           26,851,368         —           26,851,368   

For further information regarding security characteristics, see the Portfolio of Investments.

 

2

ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: MONEY MARKET VARIABLE ACCOUNT

 

By (Signature and Title)*     MARIA F. DIORIODWYER
  Maria F. DiOrioDwyer, President

Date: May 16, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*     MARIA F. DIORIODWYER
 

Maria F. DiOrioDwyer, President

(Principal Executive Officer)

Date: May 16, 2011

 

By (Signature and Title)*     JOHN M. CORCORAN
 

John M. Corcoran, Treasurer

(Principal Financial Officer and Accounting Officer)

Date: May 16, 2011

 

* Print name and title of each signing officer under his or her signature.