N-30D 1 dn30d.htm PACIFIC SELECT PSVA ANNUAL REPORT DTD 12/31/2001 Prepared by R.R. Donnelley Financial -- Pacific Select PSVA Annual Report dtd 12/31/2001
December 31, 2001

     
•  Pacific Select Fund
 
• Pacific Select Variable Annuity
Separate Account of
Pacific Life Insurance Company
 
 
 
Annual
    Reports
 
PACIFIC SELECT

TABLE OF CONTENTS
 
PACIFIC SELECT FUND
 
 

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2001
(In thousands)
 
   
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
  
$109,474
                                                 
Aggressive Growth Portfolio
         
$17,972
                                          
Emerging Markets Portfolio
                
$42,264
                                   
Diversified Research Portfolio
                       
$28,999
                            
Small-Cap Equity Portfolio
                              
$47,939
                     
International Large-Cap Portfolio
                                     
$95,728
              
I-Net Tollkeeper Portfolio
                                            
$9,173
       
Financial Services Portfolio
                                                   
$7,540
Receivables:
                                                     
Due from Pacific Life Insurance Company
                                            
80
       
Fund shares redeemed
  
51
     
6
     
159
     
16
     
368
     
151
            
5
   
Total Assets
  
109,525
     
17,978
     
42,423
     
29,015
     
48,307
     
95,879
     
9,253
     
7,545
   
LIABILITIES
                                                     
Payables:
                                                     
Due to Pacific Life Insurance Company
  
51
     
6
     
159
     
16
     
368
     
151
            
5
Fund shares purchased
                                            
80
       
   
Total Liabilities
  
51
     
6
     
159
     
16
     
368
     
151
     
80
     
5
   
NET ASSETS
  
$109,474
     
$17,972
     
$42,264
     
$28,999
     
$47,939
     
$95,728
     
$9,173
     
$7,540
   
Shares Owned in each Portfolio
  
13,453
     
2,240
     
6,883
     
2,720
     
2,755
     
15,055
     
2,046
     
815
   
Cost of Investments
  
$124,797
     
$20,078
     
$50,451
     
$28,529
     
$51,278
     
$121,745
     
$15,762
     
$7,637
   
 
See Notes to Financial Statements

G-1

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2001
(In thousands)
 
   
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
  
$10,273
                                                 
Technology Portfolio
         
$6,152
                                          
Telecommunications Portfolio
                
$1,696
                                   
Multi-Strategy Portfolio
                       
$166,538
                            
Equity Income Portfolio
                              
$366,993
                     
Strategic Value Portfolio
                                     
$12,234
              
Growth LT Portfolio
                                            
$570,631
       
Focused 30 Portfolio
                                                   
$8,934
Receivables:
                                                     
Due from Pacific Life Insurance Company
         
34
     
14
                                   
Fund shares redeemed
  
2
                   
124
     
463
     
17
     
633
     
9
   
Total Assets
  
10,275
     
6,186
     
1,710
     
166,662
     
367,456
     
12,251
     
571,264
     
8,943
   
LIABILITIES
                                                     
Payables:
                                                     
Due to Pacific Life Insurance Company
  
2
                   
124
     
463
     
17
     
633
     
9
Fund shares purchased
         
34
     
14
                                   
   
Total Liabilities
  
2
     
34
     
14
     
124
     
463
     
17
     
633
     
9
   
NET ASSETS
  
$10,273
     
$6,152
     
$1,696
     
$166,538
     
$366,993
     
$12,234
     
$570,631
     
$8,934
   
Shares Owned in each Portfolio
  
1,113
     
1,042
     
319
     
11,241
     
17,494
     
1,395
     
30,698
     
1,255
   
Cost of Investments
  
$9,306
     
$6,649
     
$2,086
     
$156,962
     
$323,780
     
$13,360
     
$496,786
     
$10,966
   
 
See Notes to Financial Statements

G-2

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2001
(In thousands)
 
   
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
  
$136,622
                                                 
International Value Portfolio
         
$311,488
                                          
Capital Opportunities Portfolio
                
$30,812
                                   
Mid-Cap Growth Portfolio
                       
$12,064
                            
Global Growth Portfolio
                              
$2,759
                     
Equity Index Portfolio
                                     
$438,710
              
Small-Cap Index Portfolio
                                            
$26,635
       
REIT Portfolio
                                                   
$40,470
Receivables:
                                                     
Due from Pacific Life Insurance Company
         
56
                   
1
                     
Fund shares redeemed
  
242
            
34
     
21
            
699
     
74
     
57
   
Total Assets
  
136,864
     
311,544
     
30,846
     
12,085
     
2,760
     
439,409
     
26,709
     
40,527
   
LIABILITIES
                                                     
Payables:
                                                     
Due to Pacific Life Insurance Company
  
242
            
34
     
21
            
699
     
74
     
57
Fund shares purchased
         
56
                   
1
                     
   
Total Liabilities
  
242
     
56
     
34
     
21
     
1
     
699
     
74
     
57
   
NET ASSETS
  
$136,622
     
$311,488
     
$30,812
     
$12,064
     
$2,759
     
$438,710
     
$26,635
     
$40,470
   
Shares Owned in each Portfolio
  
9,645
     
25,828
     
3,652
     
1,486
     
324
     
14,850
     
2,584
     
3,162
   
Cost of Investments
  
$114,767
     
$369,566
     
$35,629
     
$12,706
     
$2,907
     
$289,523
     
$25,443
     
$34,259
   
 
See Notes to Financial Statements

G-3

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2001
(In thousands)
 
    
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)
   
$115,108
                                          
Managed Bond Portfolio
          
$494,830
                                   
Money Market Portfolio
                 
$221,311
                            
High Yield Portfolio
                        
$130,989
                     
Equity Portfolio
                               
$142,911
              
Aggressive Equity Portfolio
                                      
$59,798
       
Large-Cap Value Portfolio
                                             
$181,681
Receivables:
                                               
Due from Pacific Life Insurance Company
          
51
            
749
            
407
       
Fund shares redeemed
   
82
            
322
            
320
            
14
    
Total Assets
   
115,190
     
494,881
     
221,633
     
131,738
     
143,231
     
60,205
     
181,695
    
LIABILITIES
                                               
Payables:
                                               
Due to Pacific Life Insurance Company
   
82
            
322
            
320
            
14
Fund shares purchased
          
51
            
749
            
407
       
    
Total Liabilities
   
82
     
51
     
322
     
749
     
320
     
407
     
14
    
NET ASSETS
   
$115,108
     
$494,830
     
$221,311
     
$130,989
     
$142,911
     
$59,798
     
$181,681
    
Shares Owned in each Portfolio
   
10,727
     
44,867
     
21,936
     
18,537
     
7,438
     
6,519
     
15,482
    
Cost of Investments
   
$110,426
     
$479,190
     
$220,672
     
$153,980
     
$155,400
     
$64,911
     
$192,956
    
 
(1)
 
Formerly named Government Securities Variable Account and Government Securities Portfolio.
 
See Notes to Financial Statements

G-4

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
    
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
   
$80
 
              
$64
 
     
$56
 
     
$7,517
 
     
$786
 
              
$19
 
EXPENSES
                                                                      
Mortality and expense risk fees
   
909
 
     
$159
 
     
620
 
     
310
 
     
635
 
     
1,172
 
     
$172
 
     
66
 
    
Net Investment Income (Loss)
   
(829
)
     
(159
)
     
(556
)
     
(254
)
     
6,882
 
     
(386
)
     
(172
)
     
(47
)
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                                      
Net realized loss
from security transactions
   
(1,213
)
     
(689
)
     
(11,419
)
     
(816
)
     
(15,589
)
     
(8,860
)
     
(8,502
)
     
(278
)
Net unrealized appreciation (depreciation)
on investments
   
(15,323
)
     
(2,106
)
     
5,116
 
     
173
 
     
5,801
 
     
(12,349
)
     
1,680
 
     
(97
)
    
Net Realized and Unrealized Loss
on Investments
   
(16,536
)
     
(2,795
)
     
(6,303
)
     
(643
)
     
(9,788
)
     
(21,209
)
     
(6,822
)
     
(375
)
    
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS
   
($17,365
)
     
($2,954
)
     
($6,859
)
     
($897
)
     
($2,906
)
     
($21,595
)
     
($6,994
)
     
($422
)
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements
 

G-5

 
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
    
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
       
Growth LT Variable Account
       
Focused 30 Variable Account
  
    
INVESTMENT INCOME
                                                                      
Dividends
                     
$2
 
     
$4,881
 
     
$8,120
 
     
$49
 
     
$125,005
 
     
$7
 
EXPENSES
                                                                      
Mortality and expense risk fees
   
$105
 
     
$50
 
     
22
 
     
2,293
 
     
5,960
 
     
164
 
     
9,354
 
     
120
 
    
Net Investment Income (Loss)
   
(105
)
     
(50
)
     
(20
)
     
2,588
 
     
2,160
 
     
(115
)
     
115,651
 
     
(113
)
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                                      
Net realized loss
from security transactions
   
(382
)
     
(1,882
)
     
(1,052
)
     
(2,469
)
     
(19,429
)
     
(789
)
     
(66,088
)
     
(2,017
)
Net unrealized appreciation (depreciation)
on investments
   
967
 
     
(497
)
     
(390
)
     
(4,639
)
     
(37,811
)
     
(967
)
     
(350,840
)
     
138
 
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
585
 
     
(2,379
)
     
(1,442
)
     
(7,108
)
     
(57,240
)
     
(1,756
)
     
(416,928
)
     
(1,879
)
    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
   
$480
 
     
($2,429
)
     
($1,462
)
     
($4,520
)
     
($55,080
)
     
($1,871
)
     
($301,277
)
     
($1,992
)
    
 
(1) Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements
 

G-6

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
   
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
  
$3,998
 
     
$10,376
 
     
$35
 
                       
$7,622
 
     
$1,799
 
     
$1,408
 
EXPENSES
                                                                     
Mortality and expense risk fees
  
1,469
 
     
4,940
 
     
251
 
     
$96
 
     
$24
 
     
6,832
 
     
267
 
     
480
 
   
Net Investment Income (Loss)
  
2,529
 
     
5,436
 
     
(216
)
     
(96
)
     
(24
)
     
790
 
     
1,532
 
     
928
 
   
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                                     
Net realized gain (loss)
from security transactions
  
(2,824
)
     
(21,165
)
     
(909
)
     
(1,089
)
     
(241
)
     
38,709
 
     
17
 
     
(202
)
Net unrealized appreciation (depreciation)
on investments
  
10,862
 
     
(96,385
)
     
(4,817
)
     
(642
)
     
(148
)
     
(128,175
)
     
(877
)
     
1,576
 
   
Net Realized and Unrealized Gain (Loss)
on Investments
  
8,038
 
     
(117,550
)
     
(5,726
)
     
(1,731
)
     
(389
)
     
(89,466
)
     
(860
)
     
1,374
 
   
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
  
$10,567
 
     
($112,114
)
     
($5,942
)
     
($1,827
)
     
($413
)
     
($88,676
)
     
$672
 
     
$2,302
 
   
 
(1) Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements
 

G-7

 
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
    
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
   
$5,079
 
     
$24,454
 
     
$8,678
     
$14,632
 
     
$11,250
 
              
$6,112
 
EXPENSES
                                                           
Mortality and expense risk fees
   
1,750
 
     
5,999
 
     
2,933
     
1,889
 
     
2,365
 
     
$948
 
     
1,758
 
    
Net Investment Income (Loss)
   
3,329
 
     
18,455
 
     
5,745
     
12,743
 
     
8,885
 
     
(948
)
     
4,354
 
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                           
Net realized gain (loss)
from security transactions
   
1,291
 
     
(781
)
     
70
     
(17,134
)
     
(10,872
)
     
(9,034
)
     
(2,443
)
Net unrealized appreciation (depreciation)
on investments
   
(139
)
     
9,165
 
     
8
     
4,787
 
     
(55,062
)
     
(8,740
)
     
(15,776
)
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
1,152
 
     
8,384
 
     
78
     
(12,347
)
     
(65,934
)
     
(17,774
)
     
(18,219
)
    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
   
$4,481
 
     
$26,839
 
     
$5,823
     
$396
 
     
($57,049
)
     
($18,722
)
     
($13,865
)
    
 
(1) 
 
Formerly named Government Securities Variable Account.
 
See Notes to Financial Statements

G-8

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
    
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 (loss)
   
($829
)
     
($159
)
     
($556
)
     
($254
)
     
$6,882
 
     
($386
)
     
($172
)
     
($47
)
Net realized loss
from security transactions
   
(1,213
)
     
(689
)
     
(11,419
)
     
(816
)
     
(15,589
)
     
(8,860
)
     
(8,502
)
     
(278
)
Net unrealized appreciation (depreciation)
on investments
   
(15,323
)
     
(2,106
)
     
5,116
 
     
173
 
     
5,801
 
     
(12,349
)
     
1,680
 
     
(97
)
    
Net Decrease in Net Assets
Resulting from Operations
   
(17,365
)
     
(2,954
)
     
(6,859
)
     
(897
)
     
(2,906
)
     
(21,595
)
     
(6,994
)
     
(422
)
    
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                      
Transfer of net premiums
   
1,841
 
     
307
 
     
857
 
     
792
 
     
1,035
 
     
2,560
 
     
485
 
     
269
 
Transfers between variable accounts, net
   
131,691
 
     
21,746
 
     
(1,893
)
     
6,201
 
     
(11,700
)
     
33,768
 
     
(3,843
)
     
8,363
 
Transfers—policy charges and deductions
   
(497
)
     
(69
)
     
(783
)
     
(323
)
     
(578
)
     
(1,032
)
     
(111
)
     
(59
)
Transfers—surrenders
   
(6,194
)
     
(1,062
)
     
(4,271
)
     
(2,260
)
     
(4,333
)
     
(7,947
)
     
(586
)
     
(614
)
Transfers—other
   
(2
)
     
4
 
     
24
 
     
(5
)
     
(3
)
     
(6
)
     
26
 
     
3
 
    
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
   
126,839
 
     
20,926
 
     
(6,066
)
     
4,405
 
     
(15,579
)
     
27,343
 
     
(4,029
)
     
7,962
 
    
NET INCREASE (DECREASE) IN NET ASSETS
   
109,474
 
     
17,972
 
     
(12,925
)
     
3,508
 
     
(18,485
)
     
5,748
 
     
(11,023
)
     
7,540
 
    
NET ASSETS
                                                                      
Beginning of Year
                     
55,189
 
     
25,491
 
     
66,424
 
     
89,980
 
     
20,196
 
         
    
End of Year
   
$109,474
 
     
$17,972
 
     
$42,264
 
     
$28,999
 
     
$47,939
 
     
$95,728
 
     
$9,173
 
     
$7,540
 
    
 
(1) Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

G-9

 
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
    
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
     
Growth
LT
Variable
Account
     
Focused
30
Variable
Account
  
    
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                          
Net investment income (loss)
   
($105
)
   
($50
)
     
($20
)
   
$2,588
 
   
$2,160
 
   
($115
)
   
$115,651
 
   
($113
)
Net realized loss
from security transactions
   
(382
)
   
(1,882
)
     
(1,052
)
   
(2,469
)
   
(19,429
)
   
(789
)
   
(66,088
)
   
(2,017
)
Net unrealized appreciation (depreciation)
on investments
   
967
 
   
(497
)
     
(390
)
   
(4,639
)
   
(37,811
)
   
(967
)
   
(350,840
)
   
138
 
    
Net Increase (Decrease) in Net Assets
Resulting from Operations
   
480
 
   
(2,429
)
     
(1,462
)
   
(4,520
)
   
(55,080
)
   
(1,871
)
   
(301,277
)
   
(1,992
)
    
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                          
Transfer of net premiums
   
345
 
   
184
 
     
88
 
   
1,990
 
   
6,508
 
   
370
 
   
8,737
 
   
253
 
Transfers between variable accounts, net
   
10,427
 
   
9,118
 
     
3,377
 
   
(12,761
)
   
(187,957
)
   
4,839
 
   
(121,037
)
   
721
 
Transfers—policy charges and deductions
   
(49
)
   
(76
)
     
(24
)
   
(4,380
)
   
(10,212
)
   
(202
)
   
(15,034
)
   
(142
)
Transfers—surrenders
   
(930
)
   
(646
)
     
(282
)
   
(18,406
)
   
(43,000
)
   
(1,787
)
   
(66,974
)
   
(1,077
)
Transfers—other
          
1
 
     
(1
)
          
19
 
   
(3
)
   
123
 
   
8
 
    
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
   
9,793
 
   
8,581
 
     
3,158
 
   
(33,557
)
   
(234,642
)
   
3,217
 
   
(194,185
)
   
(237
)
    
NET INCREASE (DECREASE) IN NET ASSETS
   
10,273
 
   
6,152
 
     
1,696
 
   
(38,077
)
   
(289,722
)
   
1,346
 
   
(495,462
)
   
(2,229
)
    
NET ASSETS
                                                          
Beginning of Year
                          
204,615
 
   
656,715
 
   
10,888
 
   
1,066,093
 
   
11,163
 
    
End of Year
   
$10,273
 
   
$6,152
 
     
$1,696
 
   
$166,538
 
   
$366,993
 
   
$12,234
 
   
$570,631
 
   
$8,934
 
    
 
(1)
 
Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

G-10

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
   
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 (loss)
  
$2,529
 
     
$5,436
 
     
($216
)
     
($96
)
     
($24
)
     
$790
 
     
$1,532
 
     
$928
 
Net realized gain (loss)
from security transactions
  
(2,824
)
     
(21,165
)
     
(909
)
     
(1,089
)
     
(241
)
     
38,709
 
     
17
 
     
(202
)
Net unrealized appreciation (depreciation)
on investments
  
10,862
 
     
(96,385
)
     
(4,817
)
     
(642
)
     
(148
)
     
(128,175
)
     
(877
)
     
1,576
 
   
Net Increase (Decrease) in Net Assets
Resulting from Operations
  
10,567
 
     
(112,114
)
     
(5,942
)
     
(1,827
)
     
(413
)
     
(88,676
)
     
672
 
     
2,302
 
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                     
Transfer of net premiums
  
2,795
 
     
6,062
 
     
541
 
     
481
 
     
91
 
     
7,726
 
     
511
 
     
784
 
Transfers between variable accounts, net
  
53,062
 
     
(88,189
)
     
37,742
 
     
14,615
 
     
3,198
 
     
(149,047
)
     
100
 
     
2,101
 
Transfers—policy charges and deductions
  
(1,278
)
     
(8,204
)
     
(113
)
     
(138
)
     
(14
)
     
(11,207
)
     
(180
)
     
(550
)
Transfers—surrenders
  
(10,606
)
     
(36,085
)
     
(1,421
)
     
(1,080
)
     
(106
)
     
(48,201
)
     
(2,085
)
     
(3,657
)
Transfers—other
  
13
 
     
69
 
     
5
 
     
13
 
     
3
 
     
11
 
     
2
 
     
6
 
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
43,986
 
     
(126,347
)
     
36,754
 
     
13,891
 
     
3,172
 
     
(200,718
)
     
(1,652
)
     
(1,316
)
   
NET INCREASE (DECREASE) IN NET ASSETS
  
54,553
 
     
(238,461
)
     
30,812
 
     
12,064
 
     
2,759
 
     
(289,394
)
     
(980
)
     
986
 
   
NET ASSETS
                                                                     
Beginning of Year
  
82,069
 
     
549,949
 
                                
728,104
 
     
27,615
 
     
39,484
 
   
End of Year
  
$136,622
 
     
$311,488
 
     
$30,812
 
     
$12,064
 
     
$2,759
 
     
$438,710
 
     
$26,635
 
     
$40,470
 
   
 
(1) Operations commenced during 2001 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

G-11

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
    
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 (loss)
   
$3,329
 
     
$18,455
 
     
$5,745
 
     
$12,743
 
     
$8,885
 
     
($948
)
     
$4,354
 
Net realized gain (loss)
from security transactions
   
1,291
 
     
(781
)
     
70
 
     
(17,134
)
     
(10,872
)
     
(9,034
)
     
(2,443
)
Net unrealized appreciation (depreciation)
on investments
   
(139
)
     
9,165
 
     
8
 
     
4,787
 
     
(55,062
)
     
(8,740
)
     
(15,776
)
    
Net Increase (Decrease) in Net Assets
Resulting from Operations
   
4,481
 
     
26,839
 
     
5,823
 
     
396
 
     
(57,049
)
     
(18,722
)
     
(13,865
)
    
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                             
Transfer of net premiums
   
2,971
 
     
8,294
 
     
10,838
 
     
2,383
 
     
2,360
 
     
1,191
 
     
2,952
 
Transfers between variable accounts, net
   
(34,524
)
     
75,823
 
     
86,625
 
     
(7,349
)
     
(55,494
)
     
(26,947
)
     
151,176
 
Transfers—policy charges and deductions
   
(3,476
)
     
(9,170
)
     
(11,094
)
     
(3,898
)
     
(4,359
)
     
(1,378
)
     
(1,279
)
Transfers—surrenders
   
(17,227
)
     
(46,268
)
     
(87,945
)
     
(15,839
)
     
(18,231
)
     
(7,555
)
     
(13,164
)
Transfers—other
   
12
 
     
14
 
     
8
 
     
3
 
     
47
 
     
34
 
     
7
 
    
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
   
(52,244
)
     
28,693
 
     
(1,568
)
     
(24,700
)
     
(75,677
)
     
(34,655
)
     
139,692
 
    
NET INCREASE (DECREASE) IN NET ASSETS
   
(47,763
)
     
55,532
 
     
4,255
 
     
(24,304
)
     
(132,726
)
     
(53,377
)
     
125,827
 
    
NET ASSETS
                                                             
Beginning of Year
   
162,871
 
     
439,298
 
     
217,056
 
     
155,293
 
     
275,637
 
     
113,175
 
     
55,854
 
    
End of Year
   
$115,108
 
     
$494,830
 
     
$221,311
 
     
$130,989
 
     
$142,911
 
     
$59,798
 
     
$181,681
 
    
 
(1) Formerly named Government Securities Variable Account.
 
See Notes to Financial Statements
 

G-12

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2000
(In thousands)
 
   
Emerging Markets Variable Account
       
Diversified Research Variable Account (1)
       
Small-Cap Equity Variable Account
       
International Large-Cap Variable Account (1)
       
I-Net Tollkeeper Variable Account (1)
       
Multi- Strategy Variable Account
       
Equity Income Variable Account
       
Strategic Value Variable Account (1)
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                                     
Net investment income (loss)
  
($965
)
     
($107
)
     
$5,507
 
     
($639
)
     
($184
)
     
$20,542
 
     
$60,814
 
     
($14
)
Net realized loss
from security transactions
  
(2,559
)
     
(292
)
     
(6,242
)
     
(1,221
)
     
(687
)
     
(361
)
     
(641
)
     
(113
)
Net unrealized appreciation (depreciation)
on investments
  
(29,341
)
     
297
 
     
(22,203
)
     
(13,668
)
     
(8,269
)
     
(21,052
)
     
(117,779
)
     
(159
)
   
Net Decrease in Net Assets
Resulting from Operations
  
(32,865
)
     
(102
)
     
(22,938
)
     
(15,528
)
     
(9,140
)
     
(871
)
     
(57,606
)
     
(286
)
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                     
Transfer of net premiums
  
3,529
 
     
1,625
 
     
5,053
 
     
5,018
 
     
2,702
 
     
5,311
 
     
23,607
 
     
211
 
Transfers between variable accounts, net
  
(7,087
)
     
25,196
 
     
49,148
 
     
103,762
 
     
27,218
 
     
(32,191
)
     
(31,671
)
     
11,314
 
Transfers—policy charges and deductions
  
(881
)
     
(163
)
     
(1,192
)
     
(748
)
     
(102
)
     
(3,727
)
     
(10,230
)
     
(171
)
Transfers—surrenders
  
(3,899
)
     
(1,067
)
     
(6,755
)
     
(2,519
)
     
(586
)
     
(21,013
)
     
(54,990
)
     
(179
)
Transfers—other
  
19
 
     
2
 
     
34
 
     
(5
)
     
104
 
     
(5
)
     
29
 
     
(1
)
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
(8,319
)
     
25,593
 
     
46,288
 
     
105,508
 
     
29,336
 
     
(51,625
)
     
(73,255
)
     
11,174
 
   
NET INCREASE (DECREASE) IN NET ASSETS
  
(41,184
)
     
25,491
 
     
23,350
 
     
89,980
 
     
20,196
 
     
(52,496
)
     
(130,861
)
     
10,888
 
   
NET ASSETS
                                                                     
Beginning of Year
  
96,373
 
              
43,074
 
                       
257,111
 
     
787,576
 
         
   
End of Year
  
$55,189
 
     
$25,491
 
     
$66,424
 
     
$89,980
 
     
$20,196
 
     
$204,615
 
     
$656,715
 
     
$10,888
 
   
 
(1)
 
Operations commenced on January 3, 2000 for the Diversified Research and International Large-Cap Variable Account, May 1, 2000 for the I-Net Tollkeeper Variable Account, and October 2, 2000 for the Strategic Value Variable Account.
 
See Notes to Financial Statements

G-13

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2000
(In thousands)
 
   
Growth
LT
Variable Account
       
Focused
30
Variable Account (1)
       
Mid-Cap Value Variable Account
       
International Value Variable Account
       
Equity Index Variable Account
       
Small-Cap Index Variable Account
       
REIT Variable Account
       
Inflation Managed Variable Account (2)
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                                     
Net investment income
  
$203,814
 
     
$18
 
     
$146
 
     
$11,510
 
     
$6,836
 
     
$83
 
     
$963
 
     
$6,695
 
Net realized gain (loss)
from security transactions
  
7,974
 
     
(244
)
     
(342
)
     
9,431
 
     
14,006
 
     
(2,055
)
     
(190
)
     
(1,976
)
Net unrealized appreciation (depreciation)
on investments
  
(531,324
)
     
(2,170
)
     
11,216
 
     
(103,253
)
     
(107,273
)
     
(1,327
)
     
6,238
 
     
10,355
 
   
Net Increase (Decrease) in Net Assets
Resulting from Operations
  
(319,536
)
     
(2,396
)
     
11,020
 
     
(82,312
)
     
(86,431
)
     
(3,299
)
     
7,011
 
     
15,074
 
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                     
Transfer of net premiums
  
46,767
 
     
469
 
     
4,028
 
     
23,330
 
     
28,659
 
     
2,214
 
     
2,297
 
     
6,828
 
Transfers between variable accounts, net
  
(9,578
)
     
13,405
 
     
41,062
 
     
(73,592
)
     
(21,915
)
     
3,738
 
     
15,173
 
     
(1,738
)
Transfers—policy charges and deductions
  
(19,329
)
     
(56
)
     
(545
)
     
(9,112
)
     
(9,815
)
     
(324
)
     
(326
)
     
(2,794
)
Transfers—surrenders
  
(110,802
)
     
(230
)
     
(2,697
)
     
(43,119
)
     
(58,536
)
     
(1,945
)
     
(1,653
)
     
(11,526
)
Transfers—other
  
127
 
     
(29
)
     
15
 
     
61
 
     
(20
)
     
(7
)
     
17
 
     
7
 
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
(92,815
)
     
13,559
 
     
41,863
 
     
(102,432
)
     
(61,627
)
     
3,676
 
     
15,508
 
     
(9,223
)
   
NET INCREASE (DECREASE) IN NET ASSETS
  
(412,351
)
     
11,163
 
     
52,883
 
     
(184,744
)
     
(148,058
)
     
377
 
     
22,519
 
     
5,851
 
   
NET ASSETS
                                                                     
Beginning of Year
  
1,478,444
 
              
29,186
 
     
734,693
 
     
876,162
 
     
27,238
 
     
16,965
 
     
157,020
 
   
End of Year
  
$1,066,093
 
     
$11,163
 
     
$82,069
 
     
$549,949
 
     
$728,104
 
     
$27,615
 
     
$39,484
 
     
$162,871
 
   
 
(1)
 
Operations commenced on October 2, 2000.
 
(2)
 
Formerly named Government Securities Variable Account.
 
See Notes to Financial Statements
 

G-14

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2000
(In thousands)
 
   
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
  
$20,183
 
     
$10,207
 
     
$15,125
 
     
$20,709
 
     
$3,055
 
     
$86
 
Net realized gain (loss)
from security transactions
  
(4,317
)
     
60
 
     
(11,867
)
     
(327
)
     
2,509
 
     
628
 
Net unrealized appreciation (depreciation)
on investments
  
23,404
 
     
162
 
     
(11,936
)
     
(119,731
)
     
(38,503
)
     
3,883
 
   
Net Increase (Decrease) in Net Assets
Resulting from Operations
  
39,270
 
     
10,429
 
     
(8,678
)
     
(99,349
)
     
(32,939
)
     
4,597
 
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                   
Transfer of net premiums
  
13,377
 
     
25,810
 
     
4,480
 
     
13,640
 
     
7,247
 
     
3,087
 
Transfers between variable accounts, net
  
42,704
 
     
(20,827
)
     
(29,449
)
     
(1,531
)
     
(21,837
)
     
16,431
 
Transfers—policy charges and deductions
  
(6,692
)
     
(9,975
)
     
(3,316
)
     
(4,464
)
     
(1,238
)
     
(1,232
)
Transfers—surrenders
  
(30,416
)
     
(57,232
)
     
(15,652
)
     
(25,237
)
     
(9,329
)
     
(2,191
)
Transfers—other
  
(29
)
     
(13
)
     
32
 
     
(25
)
     
(6
)
     
(17
)
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
18,944
 
     
(62,237
)
     
(43,905
)
     
(17,617
)
     
(25,163
)
     
16,078
 
   
NET INCREASE (DECREASE) IN NET ASSETS
  
58,214
 
     
(51,808
)
     
(52,583
)
     
(116,966
)
     
(58,102
)
     
20,675
 
   
NET ASSETS
                                                   
Beginning of Year
  
381,084
 
     
268,864
 
     
207,876
 
     
392,603
 
     
171,277
 
     
35,179
 
   
End of Year
  
$439,298
 
     
$217,056
 
     
$155,293
 
     
$275,637
 
     
$113,175
 
     
$55,854
 
   
 
See Notes to Financial Statements

G-15

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
 
1. SIGNIFICANT ACCOUNTING POLICIES
 
The Pacific Select Variable Annuity 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 included in Sections B through E of this report and should be read in conjunction with the Separate Account’s financial statements.
 
The Separate Account organized and registered with the Securities and Exchange Commission nine new Variable Accounts which commenced operations on January 2, 2001: the Blue Chip, Aggressive Growth, Financial Services, Health Sciences, Technology, Telecommunications, Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts.
 
On September 22, 2000, the net assets of the Fund’s Bond and Income Portfolio, the underlying portfolio for the Bond and Income Variable Account, were transferred to the Fund’s Managed Bond Portfolio in exchange for shares of the Managed Bond Portfolio (the “reorganization”). In connection with the reorganization, a total of 3,955,969 outstanding accumulation units (valued at $61,865,021) of the Bond and Income Variable Account were exchanged for 3,106,729 accumulation units with equal value of the Managed Bond Variable Account.
 
The Separate Account was established by Pacific Life Insurance Company (“Pacific Life”) on November 30, 1989 and commenced operations on July 24, 1990. 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 annuities, are obligations of Pacific Life.
 
The Separate Account held by Pacific Life represents funds from individual flexible premium variable accumulation deferred annuity contracts (the “Contracts”). 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 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
 
Pacific Life charges the Separate Account daily for mortality and expense risks assumed with respect to the Contracts funded by the Separate Account at an annual rate of 1.25% of the average daily net assets of each Variable Account. Under the Contracts, Pacific Life makes certain deductions from the net assets of each Variable Account for administrative expenses, contract maintenance, any state premium taxes, and any surrender charges. 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 annuity contracts funded by interests in the Separate Account, without remuneration from the Separate Account.

H-1

PACIFIC SELECT VARIABLE ANNUITY 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) 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 December 31, 2001 were as follows (amounts in thousands):
 
    
Variable Accounts
  
    
    
Blue Chip (1)
     
Aggressive Growth (1)
     
Emerging Markets
     
Diversified Research
       
Small-Cap Equity
     
International Large-Cap
  
    
Total cost of investments at beginning of year
                 
$68,493
 
   
$25,194
 
     
$75,564
 
   
$103,648
 
Add:  Total net proceeds from policy and M&E transactions
   
$131,391
 
   
$24,240
 
   
17,776
 
   
17,159
 
     
19,065
 
   
51,645
 
  Reinvested distributions from the Fund:
                                            
  (a) Net investment income
   
80
 
          
64
 
   
56
 
     
288
 
   
786
 
  (b) Net realized gain
                                 
7,229
 
       
    
Sub-Total
   
131,471
 
   
24,240
 
   
86,333
 
   
42,409
 
     
102,146
 
   
156,079
 
Less:  Cost of investments disposed during the year
   
6,674
 
   
4,162
 
   
35,882
 
   
13,880
 
     
50,868
 
   
34,334
 
    
Total cost of investments at end of year
   
124,797
 
   
20,078
 
   
50,451
 
   
28,529
 
     
51,278
 
   
121,745
 
Add:  Unrealized appreciation (depreciation)
   
(15,323
)
   
(2,106
)
   
(8,187
)
   
470
 
     
(3,339
)
   
(26,017
)
    
Total market value of investments at end of year
   
$109,474
 
   
$17,972
 
   
$42,264
 
   
$28,999
 
     
$47,939
 
   
$95,728
 
    
    
I-Net Tollkeeper
     
Financial Services (1)
     
Health Sciences (1)
     
Tech-
nology (1)
       
Telecom-
munications (1)
     
Multi-
Strategy
  
    
Total cost of investments at beginning of year
   
$28,465
 
                                 
$190,400
 
Add:  Total net proceeds from policy and M&E transactions
   
4,110
 
   
$10,165
 
   
$16,129
 
   
$11,762
 
     
$4,753
 
   
13,070
 
  Reinvested distributions from the Fund:
                                            
  (a) Net investment income
          
19
 
                   
2
 
   
4,533
 
  (b) Net realized gain
                                        
348
 
    
Sub-Total
   
32,575
 
   
10,184
 
   
16,129
 
   
11,762
 
     
4,755
 
   
208,351
 
Less:  Cost of investments disposed during the year
   
16,813
 
   
2,547
 
   
6,823
 
   
5,113
 
     
2,669
 
   
51,389
 
    
Total cost of investments at end of year
   
15,762
 
   
7,637
 
   
9,306
 
   
6,649
 
     
2,086
 
   
156,962
 
Add:  Unrealized appreciation (depreciation)
   
(6,589
)
   
(97
)
   
967
 
   
(497
)
     
(390
)
   
9,576
 
    
Total market value of investments at end of year
   
$9,173
 
   
$7,540
 
   
$10,273
 
   
$6,152
 
     
$1,696
 
   
$166,538
 
    
    
Equity Income
     
Strategic Value
     
Growth
LT
     
Focused
30
       
Mid-Cap
Value
     
International Value
  
    
Total cost of investments at beginning of year
   
$575,690
 
   
$11,047
 
   
$641,408
 
   
$13,333
 
     
$71,075
 
   
$511,643
 
Add:  Total net proceeds from policy and M&E transactions
   
9,839
 
   
10,698
 
   
19,300
 
   
3,667
 
     
82,199
 
   
68,890
 
  Reinvested distributions from the Fund:
                                            
  (a) Net investment income
   
2,930
 
   
49
 
   
7,912
 
   
7
 
     
929
 
   
3,754
 
  (b) Net realized gain
   
5,190
 
          
117,093
 
            
3,069
 
   
6,622
 
    
Sub-Total
   
593,649
 
   
21,794
 
   
785,713
 
   
17,007
 
     
157,272
 
   
590,909
 
Less:  Cost of investments disposed during the year
   
269,869
 
   
8,434
 
   
288,927
 
   
6,041
 
     
42,505
 
   
221,343
 
    
Total cost of investments at end of year
   
323,780
 
   
13,360
 
   
496,786
 
   
10,966
 
     
114,767
 
   
369,566
 
Add:  Unrealized appreciation (depreciation)
   
43,213
 
   
(1,126
)
   
73,845
 
   
(2,032
)
     
21,855
 
   
(58,078
)
    
Total market value of investments at end of year
   
$366,993
 
   
$12,234
 
   
$570,631
 
   
$8,934
 
     
$136,622
 
   
$311,488
 
    
    
Capital Opportuni- ties (1)
     
Mid-Cap Growth (1)
     
Global Growth (1)
     
Equity Index
       
Small-Cap Index
     
REIT
  
    
Total cost of investments at beginning of year
                        
$450,742
 
     
$25,547
 
   
$34,849
 
Add:  Total net proceeds from policy and M&E transactions
   
$40,641
 
   
$18,162
 
   
$4,353
 
   
30,174
 
     
23,388
 
   
16,853
 
  Reinvested distributions from the Fund:
                                            
  (a) Net investment income
   
35
 
                 
5,612
 
     
207
 
   
1,276
 
  (b) Net realized gain
                        
2,010
 
     
1,592
 
   
132
 
    
Sub-Total
   
40,676
 
   
18,162
 
   
4,353
 
   
488,538
 
     
50,734
 
   
53,110
 
Less:  Cost of investments disposed during the year
   
5,047
 
   
5,456
 
   
1,446
 
   
199,015
 
     
25,291
 
   
18,851
 
    
Total cost of investments at end of year
   
35,629
 
   
12,706
 
   
2,907
 
   
289,523
 
     
25,443
 
   
34,259
 
Add:  Unrealized appreciation (depreciation)
   
(4,817
)
   
(642
)
   
(148
)
   
149,187
 
     
1,192
 
   
6,211
 
    
Total market value of investments at end of year
   
$30,812
 
   
$12,064
 
   
$2,759
 
   
$438,710
 
     
$26,635
 
   
$40,470
 
    
 
(1)
 
Operations commenced during 2001 (See Note 1 to Financial Statements).

H-2

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
 
    
Variable Accounts
  
    
    
Inflation
Managed (1)
   
Managed
Bond
   
Money
Market
   
High Yield
Bond
     
Equity
     
Aggressive
Equity
     
Large-Cap
Value
  
    
Total cost of investments at beginning of year
   
$158,049
   
$432,823
   
$216,424
   
$183,071
 
   
$233,064
 
   
$109,548
 
   
$51,353
 
Add:  Total net proceeds from policy and M&E transactions
   
52,407
   
139,356
   
310,506
   
40,103
 
   
12,958
 
   
12,085
 
   
163,781
 
Reinvested distributions from the Fund:
                                           
(a) Net investment income
   
5,079
   
24,454
   
8,678
   
14,632
 
   
73
 
          
1,212
 
(b) Net realized gain
                         
11,177
 
          
4,900
 
    
                Sub-Total
   
215,535
   
596,633
   
535,608
   
237,806
 
   
257,272
 
   
121,633
 
   
221,246
 
Less:  Cost of investments disposed during the year
   
105,109
   
117,443
   
314,936
   
83,826
 
   
101,872
 
   
56,722
 
   
28,290
 
    
Total cost of investments at end of year
   
110,426
   
479,190
   
220,672
   
153,980
 
   
155,400
 
   
64,911
 
   
192,956
 
Add:  Unrealized appreciation (depreciation)
   
4,682
   
15,640
   
639
   
(22,991
)
   
(12,489
)
   
(5,113
)
   
(11,275
)
    
Total market value of investments at end of year
   
$115,108
   
$494,830
   
$221,311
   
$130,989
 
   
$142,911
 
   
$59,798
 
   
$181,681
 
    
 
6. FINANCIAL HIGHLIGHTS
 
    Selected accumulation unit value (AUV), total units outstanding, total net assets, total returns and ratios of investment income and expenses to average daily net assets for the year ended December 31, 2001 were as follows:
 
Variable Accounts
     
AUV
at
End
of Year
   
Number
of
Units Outstanding
   
Total
Net
Assets (in $000’s)
     
Total Returns (2)
     
Ratios of
Investment Income to Average Net Assets
Blue Chip (3)
     
$8.04
   
13,611,930
   
$109,474
     
(19.58%)
     
0.11%
Aggressive Growth (3)
     
7.92
   
2,268,467
   
17,972
     
(20.77%)
     
0.00%
Emerging Markets
     
5.84
   
7,233,057
   
42,264
     
(9.82%)
     
0.13%
Diversified Research
     
10.46
   
2,773,119
   
28,999
     
(3.96%)
     
0.23%
Small-Cap Equity
     
34.15
   
1,403,861
   
47,939
     
(3.77%)
     
14.91%
International Large-Cap
     
6.25
   
15,304,319
   
95,728
     
(19.31%)
     
0.84%
I-Net Tollkeeper
     
4.39
   
2,089,045
   
9,173
     
(34.72%)
     
0.00%
Financial Services (3)
     
9.16
   
823,451
   
7,540
     
(8.43%)
     
0.35%
Health Sciences (3)
     
9.12
   
1,126,834
   
10,273
     
(8.83%)
     
0.00%
Technology (3)
     
5.83
   
1,054,641
   
6,152
     
(41.67%)
     
0.00%
Telecommunications (3)
     
5.26
   
322,367
   
1,696
     
(47.38%)
     
0.09%
Multi-Strategy
     
27.82
   
5,985,636
   
166,538
     
(2.39%)
     
2.68%
Equity Income
     
31.22
   
11,756,550
   
366,993
     
(10.01%)
     
1.72%
Strategic Value
     
8.68
   
1,409,565
   
12,234
     
(10.99%)
     
0.37%
Growth LT
     
31.71
   
17,994,286
   
570,631
     
(30.44%)
     
16.84%
Focused 30
     
7.05
   
1,267,953
   
8,934
     
(14.44%)
     
0.07%
Mid-Cap Value
     
14.35
   
9,519,914
   
136,622
     
11.89%
     
3.42%
International Value
     
13.89
   
22,426,166
   
311,488
     
(22.85%)
     
2.65%
Capital Opportunities (3)
     
8.34
   
3,693,166
   
30,812
     
(16.57%)
     
0.17%
Mid-Cap Growth (3)
     
8.02
   
1,504,437
   
12,064
     
(19.81%)
     
0.00%
Global Growth (3)
     
8.40
   
328,537
   
2,759
     
(16.03%)
     
0.00%
Equity Index
     
32.83
   
13,363,360
   
438,710
     
(13.25%)
     
1.40%
Small-Cap Index
     
11.28
   
2,361,793
   
26,635
     
0.46%
     
8.50%
REIT
     
13.85
   
2,922,345
   
40,470
     
7.19%
     
3.70%
Inflation Managed (1)
     
20.48
   
5,619,239
   
115,108
     
2.96%
     
3.65%
Managed Bond
     
21.96
   
22,535,629
   
494,830
     
5.99%
     
5.12%
Money Market
     
14.81
   
14,945,680
   
221,311
     
2.57%
     
3.71%
High Yield Bond
     
21.88
   
5,987,487
   
130,989
     
0.08%
     
9.73%
Equity
     
18.15
   
7,872,674
   
142,911
     
(22.74%)
     
5.99%
Aggressive Equity
     
9.82
   
6,092,175
   
59,798
     
(18.28%)
     
0.00%
Large-Cap Value
     
11.93
   
15,232,214
   
181,681
     
(4.85%)
     
4.35%
 
(1)
 
Inflation Managed Variable Account was formerly named Government Securities Variable Account.
(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 1.25% of the average daily net assets of each Variable Account as discussed in Note 3. Total returns do not include deductions at the separate account or contract level for any 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)
 
Operations commenced during 2001 (see Note 1 to Financial Statements). The ratios of investment income to average daily net assets are annualized.

H-3

INDEPENDENT AUDITORS’ REPORT
 
The Board of Directors
Pacific Life Insurance Company:
 
We have audited the accompanying statement of assets and liabilities of Pacific Select Variable Annuity 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, Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts, for the period 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 Diversified Research, International Large-Cap, I-Net Tollkeeper, Strategic Value, and Focused 30 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, Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts, for the period 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 Variable Annuity 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

I-1

Annual Reports
as of December 31, 2001
 
• 
 
Pacific Select Fund
 
• 
 
Pacific Select Variable Annuity
Separate Account of
Pacific Life Insurance 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 Insurance Company
 
Annuities & Mutual Funds Division
 
P.O. Box 7187
 
Pasadena, California 91109-7187
 
 
ADDRESS SERVICE REQUESTED
 
 
Form No. 302-2A