N-30D 1 dn30d.htm PACIFIC SELECT SEPARATE ACCOUNT SEMI ANNUAL REPORT Pacific Select Separate Account Semi Annual Report
June 30, 2003      

·  Pacific Select

    Separate Account of

    Pacific Life Insurance Company

 

Semi-Annual

    Report

 

PACIFIC SELECT

TABLE OF CONTENTS

 

PACIFIC SELECT SEPARATE ACCOUNT     

Financial Statements:

     

Statements of Assets and Liabilities

    1

Statements of Operations

    3

Statements of Changes in Net Assets

    5

Financial Highlights

    9

Notes to Financial Statements

    10

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES

JUNE 30, 2003 (Unaudited)

 

     Small-Cap    Growth    International    Equity    Multi-    Main Street    Emerging
     Equity    LT    Value    Index    Strategy    Core    Markets
     Variable    Variable    Variable    Variable    Variable    Variable    Variable
     Account    Account    Account    Account    Account    Account (1)    Account
    

ASSETS

                                   

Investments:

                                   

Small-Cap Equity Portfolio

    $5,722,454                              

Growth LT Portfolio

         $1,332,516                         

International Value Portfolio

              $2,723,936                    

Equity Index Portfolio

                   $3,494,882               

Multi-Strategy Portfolio

                        $543,371          

Main Street Core Portfolio (1)

                             $1,233,854     

Emerging Markets Portfolio

                                  $30,517
    

Total Assets

    5,722,454    1,332,516    2,723,936    3,494,882    543,371    1,233,854    30,517
    

LIABILITIES

                                   

Payables:

                                   

Mortality and expense risk fees

    11,905    2,914    6,027    7,667    1,224    2,699    59
    

Total Liabilities

    11,905    2,914    6,027    7,667    1,224    2,699    59
    

NET ASSETS

    $5,710,549    $1,329,602    $2,717,909    $3,487,215    $542,147    $1,231,155    $30,458
    

Shares Owned in each Portfolio

    371,286    87,772    248,240    149,783    39,658    75,139    4,476
    

Cost of Investments

    $7,073,078    $2,884,756    $3,495,887    $3,738,891    $612,320    $1,779,375    $26,632
    

 

(1)   Formerly named Large-Cap Core Variable Account and Large-Cap Core Portfolio.

 

See Notes to Financial Statements

 

1

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

JUNE 30, 2003 (Unaudited)

 

     Inflation    Managed    Money    High Yield         Aggressive
     Managed    Bond    Market    Bond    Equity    Equity
     Variable    Variable    Variable    Variable    Variable    Variable
     Account    Account    Account    Account    Account    Account
    

ASSETS

                              

Investments:

                              

Inflation Managed Portfolio

    $342,977                         

Managed Bond Portfolio

         $796,693                    

Money Market Portfolio

              $761,780               

High Yield Bond Portfolio

                   $6,249,923          

Equity Portfolio

                        $9,604     

Aggressive Equity Portfolio

                             $97,948
    

Total Assets

    342,977    796,693    761,780    6,249,923    9,604    97,948
    

LIABILITIES

                              

Payables:

                              

Mortality and expense risk fees

    805    1,862    2,014    14,066    21    200
    

Total Liabilities

    805    1,862    2,014    14,066    21    200
    

NET ASSETS

    $342,172    $794,831    $759,766    $6,235,857    $9,583    $97,748
    

Shares Owned in each Portfolio

    26,792    66,084    75,510    918,396    619    12,639
    

Cost of Investments

    $286,968    $719,569    $762,471    $7,967,113    $11,763    $126,979
    

 

See Notes to Financial Statements

 

2

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS

FOR THE PERIOD ENDED JUNE 30, 2003 (Unaudited)

 

     Small-Cap     Growth     International     Equity     Multi-     Main Street     Emerging  
     Equity     LT     Value     Index     Strategy     Core     Markets  
     Variable     Variable     Variable     Variable     Variable     Variable     Variable  
     Account     Account     Account     Account     Account     Account (1)     Account  
    

INVESTMENT INCOME

                                           

Dividends

    $–       $–       $–       $–       $–       $–       $–    

EXPENSES

                                           

Mortality and expense risk fees

    17,317     4,233     8,796     11,194     1,818     3,958     85  
    

Net Investment Loss

    (17,317 )   (4,233 )   (8,796 )   (11,194 )   (1,818 )   (3,958 )   (85 )
    

REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS

                                           

Net realized gain (loss) from security transactions

    (8,518 )   (17,064 )   (6,627 )   4,962     (373 )   (7,033 )   163  

Change in net unrealized appreciation on investments

    817,813     204,744     179,374     359,536     48,369     121,518     3,393  
    

Net Gain on Investments

    809,295     187,680     172,747     364,498     47,996     114,485     3,556  
    

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS

    $791,978     $183,447     $163,951     $353,304     $46,178     $110,527     $3,471  
    

 

(1) Formerly named Large-Cap Core Variable Account.

 

See Notes to Financial Statements

 

3

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE PERIOD ENDED JUNE 30, 2003 (Unaudited)

 

     Inflation     Managed    Money     High Yield           Aggressive  
     Managed     Bond    Market     Bond     Equity     Equity  
     Variable     Variable    Variable     Variable     Variable     Variable  
     Account     Account    Account     Account     Account     Account  
    

INVESTMENT INCOME

                                    

Dividends

    $–       $15,569    $3,851     $219,074     $–       $–    

EXPENSES

                                    

Mortality and expense risk fees

    1,190     2,754    3,055     20,479     30     285  
    

Net Investment Income (Loss)

   (1,190 )   12,815    796     198,595     (30 )   (285 )
    

REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS

                                    

Net realized gain (loss) from security transactions

    2,521     3,317    (127 )   (19,894 )   (38 )   (219 )

Change in net unrealized appreciation on investments

    17,987     27,940    184     491,491     919     11,488  
    

Net Gain on Investments

   20,508     31,257    57     471,597     881     11,269  
    

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS

    $19,318     $44,072    $853     $670,192     $851     $10,984  
    

 

See Notes to Financial Statements

 

 

4

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

FOR THE PERIOD ENDED JUNE 30, 2003 (Unaudited)

 

     Small-Cap     Growth     International     Equity     Multi-     Main Street     Emerging  
     Equity     LT     Value     Index     Strategy     Core     Markets  
     Variable     Variable     Variable     Variable     Variable     Variable     Variable  
     Account     Account     Account     Account     Account     Account (1)     Account  
    

INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS

                                           

Net investment loss

    ($17,317 )   ($4,233 )   ($8,796 )   ($11,194 )   ($1,818 )   ($3,958 )   ($85 )

Net realized gain (loss) from security transactions

    (8,518 )   (17,064 )   (6,627 )   4,962     (373 )   (7,033 )   163  

Change in net unrealized appreciation on investments

    817,813     204,744     179,374     359,536     48,369     121,518     3,393  
    

Net Increase in Net Assets Resulting from Operations

    791,978     183,447     163,951     353,304     46,178     110,527     3,471  
    

INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS

                                           

Transfers between variable accounts, net

    14,213     11,020     15,343     15,142     11,826     –       12,823  

Transfers—policy charges and deductions

    (17,877 )   (5,085 )   (10,946 )   (11,820 )   (4,474 )   (7,887 )   (217 )

Transfers—surrenders

    (5,271 )   (5,928 )   (4,070 )   (5,358 )   (41,355 )   –       (6,407 )

Transfers—other

    16,383     (26,108 )   4,751     (14,782 )   (202 )   (10,333 )   (386 )
    

Net Increase (Decrease) in Net Assets
Derived from Policy Transactions

    7,448     (26,101 )   5,078     (16,818 )   (34,205 )   (18,220 )   5,813  
    

NET INCREASE IN NET ASSETS

    799,426     157,346     169,029     336,486     11,973     92,307     9,284  
    

NET ASSETS

                                           

Beginning of Period

    4,911,123     1,172,256     2,548,880     3,150,729     530,174     1,138,848     21,174  
    

End of Period

    $5,710,549     $1,329,602     $2,717,909     $3,487,215     $542,147     $1,231,155     $30,458  
    

 

(1) Formerly named Large-Cap Core Variable Account.

 

See Notes to Financial Statements

 

5

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

FOR THE PERIOD ENDED JUNE 30, 2003 (Unaudited)

 

     Inflation     Managed     Money     High Yield           Aggressive  
     Managed     Bond     Market     Bond     Equity     Equity  
     Variable     Variable     Variable     Variable     Variable     Variable  
     Account     Account     Account     Account     Account     Account  
    

INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS

                                     

Net investment income (loss)

    ($1,190 )   $12,815     $796     $198,595     ($30 )   ($285 )

Net realized gain (loss) from security transactions

    2,521     3,317     (127 )   (19,894 )   (38 )   (219 )

Change in net unrealized appreciation on investments

    17,987     27,940     184     491,491     919     11,488  
    

Net Increase in Net Assets Resulting from Operations

    19,318     44,072     853     670,192     851     10,984  
    

INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS

                                     

Transfers between variable accounts, net

    1,546     (1,072 )   (163,419 )   (794 )   874     11,498  

Transfers—policy charges and deductions

    (3,344 )   (3,283 )   (4,713 )   (14,191 )   (67 )   (881 )

Transfers—surrenders

    (12,995 )   (26,740 )   (9,413 )   (13,410 )   –       –    

Transfers—other

    (21 )   (3,352 )   1,005     454     –       (361 )
    

Net Increase (Decrease) in Net Assets

Derived from Policy Transactions

    (14,814 )   (34,447 )   (176,540 )   (27,941 )   807     10,256  
    

NET INCREASE (DECREASE) IN NET ASSETS

    4,504     9,625     (175,687 )   642,251     1,658     21,240  
    

NET ASSETS

                                     

Beginning of Period

    337,668     785,206     935,453     5,593,606     7,925     76,508  
    

End of Period

    $342,172     $794,831     $759,766     $6,235,857     $9,583     $97,748  
    

 

See Notes to Financial Statements

 

6

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

FOR THE YEAR ENDED DECEMBER 31, 2002

 

     Small-Cap      Growth      International      Equity      Multi-      Main Street      Emerging  
     Equity      LT      Value      Index      Strategy      Core      Markets  
     Variable      Variable      Variable      Variable      Variable      Variable      Variable  
     Account      Account      Account      Account      Account      Account (1)      Account  
    

INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS

                                                 

Net investment income (loss)

    ($9,920 )    $3,977      $6,477      $317,172      $19,305      ($1,908 )    ($27 )

Net realized gain (loss) from security transactions

    (7,577 )    (12,971 )    (42,627 )    43,384      34,923      68,941      (32,533 )

Change in net unrealized appreciation (depreciation)

on investments

    (1,568,111 )    (504,123 )    (410,247 )    (1,312,628 )    (196,880 )    (743,828 )    39,380  
    

Net Increase (Decrease) in Net Assets Resulting

from Operations

    (1,585,608 )    (513,117 )    (446,397 )    (952,072 )    (142,652 )    (676,795 )    6,820  
    

INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS

                                                 

Transfers between variable accounts, net

    (12,958 )    (11,368 )    (66,553 )    353      6,183      (52,477 )    (92,710 )

Transfers—policy charges and deductions

    (43,230 )    (10,609 )    (23,971 )    (24,445 )    (11,186 )    (27,009 )    (720 )

Transfers—surrenders

    (90,355 )    (29,801 )    (131,555 )    (71,413 )    (467,839 )    (651,687 )    (18,722 )

Transfers—other

    17,955      (43,611 )    (6,920 )    (22,968 )    6,387      (49,332 )    2,923  
    

Net Decrease in Net Assets
Derived from Policy Transactions

    (128,588 )    (95,389 )    (228,999 )    (118,473 )    (466,455 )    (780,505 )    (109,229 )
    

NET DECREASE IN NET ASSETS

    (1,714,196 )    (608,506 )    (675,396 )    (1,070,545 )    (609,107 )    (1,457,300 )    (102,409 )
    

NET ASSETS

                                                 

Beginning of Year

    6,625,319      1,780,762      3,224,276      4,221,274      1,139,281      2,596,148      123,583  
    

End of Year

    $4,911,123      $1,172,256      $2,548,880      $3,150,729      $530,174      $1,138,848      $21,174  
    

 

(1) Formerly named Large-Cap Core Variable Account.

 

See Notes to Financial Statements

 

7

PACIFIC SELECT SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2002

 

     Inflation     Managed     Money     High Yield           Aggressive  
     Managed     Bond     Market     Bond     Equity     Equity  
     Variable     Variable     Variable     Variable     Variable     Variable  
     Account     Account     Account     Account     Account     Account  
    

INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS

                                     

Net investment income (loss)

    $6,197     $36,371     $5,657     $458,519     ($465 )   ($603 )

Net realized gain (loss) from security transactions

    418     8,769     (52 )   (106,613 )   (83,339 )   (2,002 )

Change in net unrealized appreciation (depreciation) on investments

    36,754     29,677     (71 )   (573,378 )   59,840     (22,090 )
    

Net Increase (Decrease) in Net Assets Resulting from Operations

    43,369     74,817     5,534     (221,472 )   (23,964 )   (24,695 )
    

INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS

                                     

Transfers between variable accounts, net

    5,944     (49,211 )   329,593     (61,408 )   (87,611 )   6,602  

Transfers—policy charges and deductions

    (5,499 )   (5,897 )   (8,953 )   (26,276 )   (643 )   (1,644 )

Transfers—surrenders

    –       (29,063 )   (33,291 )   (30,091 )   –       –    

Transfers—other

    –       (7,138 )   1,866     2,402     (609 )   1  
    

Net Increase (Decrease) in Net Assets
Derived from Policy Transactions

    445     (91,309 )   289,215     (115,373 )   (88,863 )   4,959  
    

NET INCREASE (DECREASE) IN NET ASSETS

    43,814     (16,492 )   294,749     (336,845 )   (112,827 )   (19,736 )
    

NET ASSETS

                                     

Beginning of Year

    293,854     801,698     640,704     5,930,451     120,752     96,244  
    

End of Year

    $337,668     $785,206     $935,453     $5,593,606     $7,925     $76,508  
    

 

See Notes to Financial Statements

 

8

PACIFIC SELECT SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS

 

Selected accumulation unit value (AUV), total units outstanding, total net assets, ratios of investment income and expenses to average daily net assets, and total returns for each period or year ended are presented in the table below.

 

     AUV    Number         Ratios of    Ratios of       
     at    of         Investment Income    Expenses       
For the Period    End of    Units    Total    to Average    to Average    Total  
or Year Ended    Period/Year    Outstanding    Net Assets    Net Assets (1)    Net Assets (1)    Returns (2)  

Small-Cap Equity

                                

06/30/2003 (Unaudited)

    $43.04    132,667    $5,710,549    0.00%    0.70%    16.17%  

2002

    37.05    132,541    4,911,123    0.53%    0.70%    (24.15% )

2001 (3)

    48.85    135,608    6,625,319    16.48%    0.70%    (2.46% )

Growth LT

                                

06/30/2003 (Unaudited)

    $27.04    49,164    $1,329,602    0.00%    0.70%    15.67%  

2002

    23.38    50,138    1,172,256    0.99%    0.70%    (29.51% )

2001 (3)

    33.17    53,683    1,780,762    17.42%    0.70%    (29.40% )

International Value

                                

06/30/2003 (Unaudited)

    $17.57    154,649    $2,717,909    0.00%    0.70%    6.43%  

2002

    16.51    154,361    2,548,880    0.93%    0.70%    (14.53% )

2001 (3)

    19.32    166,870    3,224,276    2.74%    0.70%    (22.86% )

Equity Index

                                

06/30/2003 (Unaudited)

    $30.18    115,559    $3,487,215    0.00%    0.70%    11.22%  

2002

    27.13    116,121    3,150,729    9.49%    0.70%    (22.92% )

2001 (3)

    35.20    119,910    4,221,274    1.45%    0.70%    (11.83% )

Multi-Strategy

                                

06/30/2003 (Unaudited)

    $32.39    16,740    $542,147    0.00%    0.70%    9.43%  

2002

    29.59    17,915    530,174    2.91%    0.70%    (13.70% )

2001 (3)

    34.29    33,220    1,139,281    2.68%    0.70%    (1.49% )

Main Street Core (4)

                                

06/30/2003 (Unaudited)

    $31.88    38,622    $1,231,155    0.00%    0.70%    9.87%  

2002

    29.01    39,252    1,138,848    0.61%    0.70%    (28.95% )

2001 (3)

    40.84    63,567    2,596,148    1.88%    0.70%    (8.54% )

Emerging Markets

                                

06/30/2003 (Unaudited)

    $6.50    4,682    $30,458    0.00%    0.70%    14.67%  

2002

    5.67    3,733    21,174    0.67%    0.70%    (3.84% )

2001 (3)

    5.90    20,946    123,583    0.17%    0.70%    (9.98% )

Inflation Managed

                                

06/30/2003 (Unaudited)

    $30.95    11,054    $342,172    0.00%    0.70%    5.82%  

2002

    29.25    11,544    337,668    2.68%    0.70%    14.69%  

2001 (3)

    25.51    11,520    293,854    3.67%    0.70%    3.55%  

Managed Bond

                                

06/30/2003 (Unaudited)

    $32.26    24,642    $794,831    3.96%    0.70%    5.72%  

2002

    30.51    25,736    785,206    5.36%    0.70%    10.19%  

2001 (3)

    27.69    28,951    801,698    5.13%    0.70%    5.92%  

Money Market

                                

06/30/2003 (Unaudited)

    $18.83    40,344    $759,766    0.88%    0.70%    0.10%  

2002

    18.81    49,721    935,453    1.41%    0.70%    0.71%  

2001 (3)

    18.68    34,294    640,704    3.78%    0.70%    3.13%  

High Yield Bond

                                

06/30/2003 (Unaudited)

    $27.45    227,155    $6,235,857    7.49%    0.70%    12.02%  

2002

    24.51    228,243    5,593,606    8.71%    0.70%    (3.67% )

2001 (3)

    25.44    233,109    5,930,451    9.84%    0.70%    0.46%  

Equity

                                

06/30/2003 (Unaudited)

    $6.88    1,393    $9,583    0.00%    0.70%    10.02%  

2002

    6.25    1,267    7,925    0.05%    0.70%    (27.24% )

2001 (3)

    8.60    14,046    120,752    6.02%    0.70%    (21.45% )

Aggressive Equity

                                

06/30/2003 (Unaudited)

    $7.77    12,573    $97,748    0.00%    0.70%    12.39%  

2002

    6.92    11,060    76,508    0.00%    0.70%    (25.66% )

2001 (3)

    9.31    10,342    96,224    0.00%    0.70%    (17.53% )

 

(1)   The ratios of investment income and expenses to average daily net assets for period of less than one full year are annualized.
(2)   Total returns reflect a deduction for mortality and expense risk charges assessed through the daily accumulation unit value calculation and these charges are assessed at an annual rate of 0.70% of the average daily net assets of each Variable Account as discussed in Note 3 to Financial Statements. Total returns do not include deductions at the separate account or contract level for any 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 for period of less than one full year are not annualized.
(3)   Total returns were calculated through December 28, 2001, the last business day of the fiscal year for the Separate Account.
(4)   The Main Street Core Variable Account was formerly named Large-Cap Core Variable Account.

 

See Notes to Financial Statements

 

9

PACIFIC SELECT SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

 

1. SIGNIFICANT ACCOUNTING POLICIES

 

The Pacific Select Separate Account (the “Separate Account”) is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and as of June 30, 2003 is comprised of thirteen subaccounts called Variable Accounts: Small-Cap Equity, Growth LT, International Value, Equity Index, Multi-Strategy, Main Street® Core (formerly Large-Cap Core), Emerging Markets, Inflation Managed, Managed Bond, Money Market, High Yield Bond, Equity, and Aggressive Equity Variable Accounts. (Main Street is a registered trademark of Oppenheimer Funds.) The assets in each Variable Account invest 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 was established by Pacific Life Insurance Company (“Pacific Life”) on November 20, 1986 and commenced operations on January 7, 1988. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the other assets and liabilities of Pacific Life. The assets of the Separate Account will not be charged with any liabilities arising out of any other business conducted by Pacific Life, but the obligations of the Separate Account, including benefits related to variable life insurance, are obligations of Pacific Life.

 

The Separate Account held by Pacific Life represents funds from individual flexible premium variable life insurance 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 Pacific Life, 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 Pacific Life with respect to the operations of the Separate Account.

 

2. DIVIDENDS

 

During the six-month period ended June 30, 2003, the Fund declared dividends for the Managed Bond, Money Market, and High Yield Bond 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 portfolio.

 

3. CHARGES AND EXPENSES

 

Pacific Life charges the Separate Account daily for mortality and expense risks assumed with respect to variable life insurance policies funded by the Separate Account at an annual rate of 0.70% of the average daily net assets of each Variable Account. Under the policies, Pacific Life makes certain deductions from the net assets of each Variable Account for sales load, administrative expenses, premium tax charges, cost of insurance and charges for optional benefits. The operating expenses of the Separate Account are paid by Pacific Life.

 

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.

 

10

PACIFIC SELECT SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued)

(Unaudited)

 

5. SEPARATE ACCOUNT'S COST OF INVESTMENTS IN THE FUND SHARES

 

The cost of investments in the Fund shares are determined on an identified cost basis, which represents the amount available for investment (including reinvested distributions of net investment income and realized gains) in such shares after deduction of mortality and expense risk charges (M&E). A reconciliation of total cost and market value of the Separate Account's investments in the Fund as of June 30, 2003, were as follows:

 

     Variable Accounts  
    
    

Small-Cap

Equity

     

Growth

LT

     

International

Value

     

Equity

Index

     

Multi-  

Strategy

  
    

Total cost of investments at beginning of period

    $7,090,951      $2,932,053      $3,506,186      $3,761,744      $648,728  

Add:    Total net proceeds from policy and M&E transactions

    26,218      9,261      14,480      10,416      9,394  

   Reinvested distributions from the Fund

    —      —      —      —      —  
    

Sub-Total

    7,117,169      2,941,314      3,520,666      3,772,160      658,122  

Less:    Cost of investments disposed during the period

    44,091      56,558      24,779      33,269      45,802  
    

Total cost of investments at end of period

    7,073,078      2,884,756      3,495,887      3,738,891      612,320  

Add:    Unrealized depreciation

    (1,350,624 )    (1,552,240 )    (771,951 )    (244,009 )    (68,949 )
    

Total market value of investments at end of period

    $5,722,454      $1,332,516      $2,723,936      $3,494,882      $543,371  
    
     Main Street      Emerging      Inflation      Managed      Money  
     Core (1)      Markets      Managed      Bond      Market  
    

Total cost of investments at beginning of period

    $1,808,634      $20,722      $300,426      $737,840      $938,607  

Add:    Total net proceeds from policy and M&E transactions

    12,076      11,892      1,224      —      994  

   Reinvested distributions from the Fund

    —      —      —      15,569      3,851  
    

Sub-Total

    1,820,710      32,614      301,650      753,409      943,452  

Less:    Cost of investments disposed during the period

    41,335      5,982      14,682      33,840      180,981  
    

Total cost of investments at end of period

    1,779,375      26,632      286,968      719,569      762,471  

Add:    Unrealized appreciation (depreciation)

    (545,521 )    3,885      56,009      77,124      (691 )
    

Total market value of investments at end of period

    $1,233,854      $30,517      $342,977      $796,693      $761,780  
    
     High Yield             Aggressive                
     Bond      Equity      Equity                
    

Total cost of investments at beginning of period

    $7,815,139      $11,022      $117,197                

Add:    Total net proceeds from policy and M&E transactions

    483      853      10,294                

   Reinvested distributions from the Fund

    219,074      —      —                
    

Sub-Total

    8,034,696      11,875      127,491                

Less:    Cost of investments disposed during the period

    67,583      112      512                
    

Total cost of investments at end of period

    7,967,113      11,763      126,979                

Add:    Unrealized depreciation

    (1,717,190 )    (2,159 )    (29,031 )              
    

Total market value of investments at end of period

    $6,249,923      $9,604      $97,948                
    

 

(1) The Main Street Core Variable Account was formerly named Large-Cap Core Variable Account.

 

11

PACIFIC SELECT SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued)

(Unaudited)

 

6.   TRANSACTIONS IN SEPARATE ACCOUNT UNITS

 

       Transactions in Separate Account units for the period ended June 30, 2003, were as follows:

 

     Variable Accounts  
    
     Small-Cap      Growth      International      Equity      Multi-    
     Equity      LT      Value      Index      Strategy  
    

Total units outstanding at beginning of period

    132,541      50,138      154,361      116,121      17,915  

Increase (decrease) in units resulting from
policy transactions:

                                   

(a)  Transfers between variable accounts, net

    385      457      946      551      395  

(b)  Transfers—policy charges and deductions

    (479 )    (209 )    (670 )    (427 )    (148 )

(c)  Transfers—surrenders

    (151 )    (254 )    (263 )    (201 )    (1,410 )

(d)  Transfers—other

    371      (968 )    275      (485 )    (12 )
    

Sub-Total

    126      (974 )    288      (562 )    (1,175 )
    

Total units outstanding at end of period

    132,667      49,164      154,649      115,559      16,740  
    
     Main Street      Emerging      Inflation      Managed      Money  
     Core (1)      Markets      Managed      Bond      Market  
    

Total units outstanding at beginning of period

    39,252      3,733      11,544      25,736      49,721  

Increase (decrease) in units resulting from
policy transactions:

                                   

(a)  Transfers between variable accounts, net

    —      2,277      49      (34 )    (8,680 )

(b)  Transfers—policy charges and deductions

    (268 )    (38 )    (111 )    (105 )    (250 )

(c)  Transfers—surrenders

    —      (1,225 )    (428 )    (852 )    (500 )

(d)  Transfers—other

    (362 )    (65 )    —      (103 )    53  
    

Sub-Total

    (630 )    949      (490 )    (1,094 )    (9,377 )
    

Total units outstanding at end of period

    38,622      4,682      11,054      24,642      40,344  
    
     High Yield             Aggressive                
     Bond      Equity      Equity                
    
             

Total units outstanding at beginning of period

    228,243      1,267      11,060                

Increase (decrease) in units resulting from
policy transactions:

                                   

(a)  Transfers between variable accounts, net

    (32 )    136      1,690                

(b)  Transfers—policy charges and deductions

    (549 )    (10 )    (127 )              

(c)  Transfers—surrenders

    (525 )    —      —                

(d)  Transfers—other

    18      —      (50 )              
    
             

Sub-Total

    (1,088 )    126      1,513                
    
             

Total units outstanding at end of period

    227,155      1,393      12,573                
    
             

 

(1) The Main Street Core Variable Account was formerly named Large-Cap Core Variable Account.

 

 

12

Semi-Annual Report

as of June 30, 2003

 

•  Pacific Select

   Separate Account of

   Pacific Life Insurance Company

 

Accountants

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626

 

Counsel

Dechert LLP

1775 Eye Street, N.W.

Washington, D.C. 20006-2401

 

Pacific Life Insurance Company

Life Insurance Operations Center

P.O. Box 7500

Newport Beach, California 92658-7500

 

ADDRESS SERVICE REQUESTED

 

 

Form No. 15-21759-04