N-30D 1 dn30d.htm ANNUAL REPORT FOR PSVA Annual Report for PSVA

December 31, 2002


     

•

 

•


  

Pacific Select Fund

 

Pacific Select Variable Annuity
Separate Account of
Pacific Life Insurance Company

 

 

Annual

          Reports

 

 

 

 

 

 

 

PACIFIC SELECT

TABLE OF CONTENTS
 
PACIFIC SELECT FUND
 
Chairman’s Letter
   
A-1
Performance Discussion
   
A-2
Schedules of Investments and Notes
   
B-1
Financial Statements:
     
Statements of Assets and Liabilities
   
C-1
Statements of Operations
   
C-5
Statements of Changes in Net Assets
   
C-9
Financial Highlights
   
D-1
Notes to Financial Statements
   
E-1
Independent Auditors’ Report
   
F-1
Trustees and Officers Information
   
F-2
 
PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
 
Financial Statements:
     
Statements of Assets and Liabilities
   
G-1
Statements of Operations
   
G-5
Statements of Changes in Net Assets
   
G-9
Financial Highlights
   
H-1
Notes to Financial Statements
   
I-1
Independent Auditors’ Report
   
J-1

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2002
(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
  
$75,259
                                     
Aggressive Growth Portfolio
       
$3,204
                                
Emerging Markets Portfolio
            
$28,415
                           
Diversified Research Portfolio
                 
$22,441
                      
Small-Cap Equity Portfolio
                      
$27,190
                 
International Large-Cap Portfolio
                             
$62,550
          
I-Net Tollkeeper Portfolio
                                  
$4,461
     
Financial Services Portfolio
                                       
$4,853
Receivables:
                                         
Due from Pacific Life Insurance Company
  
—
   
—
   
—
   
20
   
28
     
15
   
—
   
—
Fund shares redeemed
  
29
   
3
   
46
   
—
   
—
     
—
   
6
   
232
   
Total Assets .
  
75,288
   
3,207
   
28,461
   
22,461
   
27,218
     
62,565
   
4,467
   
5,085
   
LIABILITIES
                                         
Payables:
                                         
Due to Pacific Life Insurance Company
  
29
   
3
   
46
   
—
   
—
     
—
   
6
   
232
Fund shares purchased
  
—
   
—
   
—
   
20
   
28
     
15
   
—
   
—
   
Total Liabilities
  
29
   
3
   
46
   
20
   
28
     
15
   
6
   
232
   
NET ASSETS
  
$75,259
   
$3,204
   
$28,415
   
$22,441
   
$27,190
     
$62,550
   
$4,461
   
$4,853
   
Shares Owned in each Portfolio
  
12,503
   
514
   
4,795
   
2,785
   
2,057
     
12,048
   
1,621
   
616
   
Cost of Investments
  
$111,794
   
$3,639
   
$32,160
   
$26,878
   
$34,329
     
$88,839
   
$6,656
   
$5,173
   
 
See Notes to Financial Statements

G-1

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2002

(In thousands)

 

    

Health Sciences Variable Account

     

Technology Variable Account

     

Telecom-

  munications   Variable

Account

   

Multi-

Strategy Variable Account

   

Large-Cap

Core

Variable Account (1)

   

Strategic Value Variable Account

   

Growth LT Variable Account

   

Focused 30 Variable Account

    

ASSETS

                                            

Investments:

                                            

Health Sciences Portfolio

   

$6,011

                                       

Technology Portfolio

          

$3,553

                                

Telecommunications Portfolio

                 

$1,432

                         

Multi-Strategy Portfolio

                      

$105,095

                    

Large-Cap Core Portfolio (1)

                           

$185,196

               

Strategic Value Portfolio

                                

$6,619

          

Growth LT Portfolio

                                     

$294,557

     

Focused 30 Portfolio

                                          

$3,706

Receivables:

                                            

Due from Pacific Life Insurance Company

   

—

     

37

     

—

   

—

   

—

   

—

   

—

   

—

Fund shares redeemed

   

242

     

—

     

14

   

394

   

108

   

15

   

65

   

2

    

Total Assets

   

6,253

     

3,590

     

1,446

   

105,489

   

185,304

   

6,634

   

294,622

   

3,708

    

LIABILITIES

                                            

Payables:

                                            

Due to Pacific Life Insurance Company

   

242

     

—

     

14

   

394

   

108

   

15

   

65

   

2

Fund shares purchased

   

—

     

37

     

—

   

—

   

—

   

—

   

—

   

—

    

Total Liabilities

   

242

     

37

     

14

   

394

   

108

   

15

   

65

   

2

    

NET ASSETS

   

$6,011

     

$3,553

     

$1,432

   

$105,095

   

$185,196

   

$6,619

   

$294,557

   

$3,706

    

Shares Owned in each Portfolio

   

849

     

1,121

     

508

   

8,423

   

12,435

   

970

   

22,520

   

739

    

Cost of Investments

   

$6,595

     

$4,613

     

$1,795

   

$113,780

   

$217,127

   

$8,187

   

$339,420

   

$5,507

    

 

(1) Formerly named Equity Income Variable Account and Equity Income Portfolio.

 

See Notes to Financial Statements

 

G-2

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2002
(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
   
Real
Estate
Variable
Account (1)
   
ASSETS
                                         
Investments:
                                         
Mid-Cap Value Portfolio
  
$78,822
                                     
International Value Portfolio
       
$202,930
                                
Capital Opportunities Portfolio
              
$18,866
                         
Mid-Cap Growth Portfolio
                   
$9,146
                    
Global Growth Portfolio
                        
$2,112
               
Equity Index Portfolio .
                             
$253,107
          
Small-Cap Index Portfolio
                                  
$35,421
     
Real Estate Portfolio (1)
                                       
$35,988
Receivables:
                                         
Due from Pacific Life Insurance Company
  
—
   
—
     
—
   
424
   
—
   
—
   
11
   
—
Fund shares redeemed
  
715
   
185
     
2,367
   
—
   
—
   
2,414
   
—
   
10
   
Total Assets
  
79,537
   
203,115
     
21,233
   
9,570
   
2,112
   
255,521
   
35,432
   
35,998
   
LIABILITIES
                                         
Payables:
                                         
Due to Pacific Life Insurance Company
  
715
   
185
     
2,367
   
—
   
—
   
2,414
   
—
   
10
Fund shares purchased
  
—
   
—
     
—
   
424
   
—
   
—
   
11
   
—
   
Total Liabilities
  
715
   
185
     
2,367
   
424
   
—
   
2,414
   
11
   
10
   
NET ASSETS
  
$78,822
   
$202,930
     
$18,866
   
$9,146
   
$2,112
   
$253,107
   
$35,421
   
$35,988
   
Shares Owned in each Portfolio
  
6,921
   
19,756
     
3,060
   
2,127
   
308
   
12,107
   
4,395
   
2,978
   
Cost of Investments
  
$77,088
   
$263,521
     
$26,348
   
$13,077
   
$2,490
   
$227,924
   
$41,255
   
$31,858
   
 
(1) Formerly named REIT Variable Account and REIT Portfolio.
 
See Notes to Financial Statements

G-3

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2002

(In thousands)

 

   

Inflation Managed Variable Account

   

Managed Bond Variable Account

   

Money Market Variable Account

   

High Yield Bond Variable Account

   

Equity Income Variable Account (1)

   

Research Variable Account (1)

   

Equity Variable Account

   

Aggressive Equity Variable Account

   

Large-Cap     Value         Variable     Account

   

ASSETS

                                            

Investments:

                                            

Inflation Managed Portfolio

  

$196,324

                                        

Managed Bond Portfolio

       

$379,484

                                   

Money Market Portfolio

            

$163,686

                              

High Yield Bond Portfolio

                 

$96,579

                         

Equity Income Portfolio

                      

$14,029

                    

Research Portfolio

                           

$1,973

               

Equity Portfolio

                                

$70,812

          

Aggressive Equity Portfolio

                                     

$39,478

     

Large-Cap Value Portfolio

                                          

$117,436

Receivables:

                                            

Due from Pacific Life Insurance Company

  

6,745

   

333

   

—

   

—

   

—

   

—

   

—

   

—

   

—

Fund shares redeemed

  

—

   

—

   

1,004

   

120

   

2,325

   

—

   

22

   

50

   

486

   

Total Assets .

  

203,069

   

379,817

   

164,690

   

96,699

   

16,354

   

1,973

   

70,834

   

39,528

   

117,922

   

LIABILITIES

                                            

Payables:

                                            

Due to Pacific Life Insurance Company

  

—

   

—

   

1,004

   

120

   

2,325

   

—

   

22

   

50

   

486

Fund shares purchased

  

6,745

   

333

   

—

   

—

   

—

   

—

   

—

   

—

   

—

   

Total Liabilities

  

6,745

   

333

   

1,004

   

120

   

2,325

   

—

   

22

   

50

   

486

   

NET ASSETS

  

$196,324

   

$379,484

   

$163,686

   

$96,579

   

$14,029

   

$1,973

   

$70,812

   

$39,478

   

$117,436

   

Shares Owned in each Portfolio

  

16,282

   

32,741

   

16,225

   

15,370

   

1,637

   

251

   

5,038

   

5,746

   

13,128

   

Cost of Investments

  

$172,957

   

$346,965

   

$163,118

   

$116,059

   

$14,951

   

$1,996

   

$98,456

   

$53,840

   

$156,944

   

 

(1) Operations commenced during 2002 (See Note 1 to Financial Statements).

 

See Notes to Financial Statements

 

G-4

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2002
(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
  
   
INVESTMENT INCOME
                                                       
Dividends
  
$96
 
   
$—
 
   
$188
 
   
$66
 
   
$181
 
   
$720
 
   
$—
 
   
$14
 
EXPENSES
                                                       
Mortality and expense risk fees
  
1,127
 
   
109
 
   
466
 
   
290
 
   
511
 
   
963
 
   
65
 
   
87
 
   
Net Investment Loss .
  
(1,031
)
   
(109
)
   
(278
)
   
(224
)
   
(330
)
   
(243
)
   
(65
)
   
(73
)
   
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                       
Net realized loss
from security transactions
  
(7,264
)
   
(2,896
)
   
(5,289
)
   
(2,626
)
   
(8,513
)
   
(14,702
)
   
(7,512
)
   
(1,106
)
Net unrealized appreciation (depreciation)
on investments
  
(21,211
)
   
1,672
 
   
4,442
 
   
(4,907
)
   
(3,800
)
   
(272
)
   
4,393
 
   
(223
)
   
Net Realized and Unrealized Loss
on Investments
  
(28,475
)
   
(1,224
)
   
(847
)
   
(7,533
)
   
(12,313
)
   
(14,974
)
   
(3,119
)
   
(1,329
)
   
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS
  
($29,506
)
   
($1,333
)
   
($1,125
)
   
($7,757
)
   
($12,643
)
   
($15,217
)
   
($3,184
)
   
($1,402
)
   
 
See Notes to Financial Statements

G-5

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2002
(In thousands)
 
    
Health Sciences Variable Account
     
Technology Variable Account
       
Telecom-
munications
Variable Account
     
Multi-
Strategy Variable
Account
     
Large-Cap Core Variable Account (1)
     
Strategic Value Variable Account
     
Growth
LT Variable Account
     
Focused 30 Variable Account
  
    
INVESTMENT INCOME
                                                          
Dividends (2)
   
$—
 
   
$—
 
     
$—
 
   
$4,007
 
   
$1,741
 
   
$12
 
   
$4,140
 
   
$9
 
EXPENSES
                                                          
Mortality and expense risk fees
   
101
 
   
48
 
     
13
 
   
1,662
 
   
3,284
 
   
127
 
   
5,055
 
   
72
 
    
Net Investment Income (Loss)
   
(101
)
   
(48
)
     
(13
)
   
2,345
 
   
(1,543
)
   
(115
)
   
(915
)
   
(63
)
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                          
Net realized loss
from security transactions
   
(710
)
   
(2,128
)
     
(841
)
   
(6,311
)
   
(20,851
)
   
(2,368
)
   
(39,081
)
   
(2,355
)
Net unrealized appreciation (depreciation)
on investments
   
(1,550
)
   
(562
)
     
27
 
   
(18,261
)
   
(75,144
)
   
(442
)
   
(118,708
)
   
231
 
    
Net Realized and Unrealized Loss
on Investments
   
(2,260
)
   
(2,690
)
     
(814
)
   
(24,572
)
   
(95,995
)
   
(2,810
)
   
(157,789
)
   
(2,124
)
    
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS
   
($2,361
)
   
($2,738
)
     
($827
)
   
($22,227
)
   
($97,538
)
   
($2,925
)
   
($158,704
)
   
($2,187
)
    
 
(1) Formerly named Equity Income Variable Account.
 
(2)
 
Pacific Select Fund declared dividends on the Telecommunications Portfolio during 2002. The amount received by the Telecommunications Variable Account was $64 for the year and is not shown on the above Statements of Operations due to rounding.
 
See Notes to Financial Statements

G-6

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2002
(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
     
Real
Estate Variable Account (1)
  
   
INVESTMENT INCOME
                                                         
Dividends
  
$8,028
 
   
$2,160
 
     
$42
 
   
$—
 
   
$—
 
   
$32,266
 
   
$278
 
   
$2,362
 
EXPENSES
                                                         
Mortality and expense risk fees
  
1,430
 
   
3,217
 
     
291
 
   
111
 
   
34
 
   
4,241
 
   
446
 
   
558
 
   
Net Investment Income (Loss)
  
6,598
 
   
(1,057
)
     
(249
)
   
(111
)
   
(34
)
   
28,025
 
   
(168
)
   
1,804
 
   
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                         
Net realized gain (loss)
from security transactions
  
(6,436
)
   
(35,617
)
     
(5,134
)
   
(2,973
)
   
(399
)
   
2,438
 
   
(5,767
)
   
(1,734
)
Net unrealized depreciation
on investments
  
(20,121
)
   
(2,512
)
     
(2,664
)
   
(3,289
)
   
(231
)
   
(124,003
)
   
(7,026
)
   
(2,081
)
   
Net Realized and Unrealized Loss
on Investments
  
(26,557
)
   
(38,129
)
     
(7,798
)
   
(6,262
)
   
(630
)
   
(121,565
)
   
(12,793
)
   
(3,815
)
   
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS
  
($19,959
)
   
($39,186
)
     
($8,047
)
   
($6,373
)
   
($664
)
   
($93,540
)
   
($12,961
)
   
($2,011
)
   
 
(1) Formerly named REIT Variable Account.
 
See Notes to Financial Statements

G-7

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2002
(In thousands)
 
    
Inflation Managed Variable Account
   
Managed Bond Variable Account
   
Money Market Variable Account
     
High Yield Bond Variable Account
     
Equity Income Variable Account (1)
       
Research Variable Account (1)
     
Equity Variable Account
     
Aggressive Equity Variable Account
     
Large-Cap Value     Variable     Account
  
    
INVESTMENT INCOME
                                                             
Dividends
   
$4,010
   
$22,752
   
$2,732
 
   
$9,635
 
   
$143
 
     
$6
 
   
$326
 
   
$—
 
   
$1,306
 
EXPENSES
                                                             
Mortality and expense risk fees
   
2,023
   
5,376
   
2,439
 
   
1,388
 
   
120
 
     
7
 
   
1,304
 
   
659
 
   
1,826
 
    
Net Investment Income (Loss)
   
1,987
   
17,376
   
293
 
   
8,247
 
   
23
 
     
(1
)
   
(978
)
   
(659
)
   
(520
)
    
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
                                                             
Net realized gain (loss)
from security transactions
   
420
   
3,884
   
93
 
   
(16,829
)
   
(1,172
)
     
(54
)
   
(19,205
)
   
(8,185
)
   
(11,966
)
Net unrealized appreciation (depreciation)
on investments
   
18,685
   
16,880
   
(71
)
   
3,511
 
   
(922
)
     
(23
)
   
(15,154
)
   
(9,248
)
   
(28,233
)
    
Net Realized and Unrealized Gain (Loss)
on Investments
   
19,105
   
20,764
   
22
 
   
(13,318
)
   
(2,094
)
     
(77
)
   
(34,359
)
   
(17,433
)
   
(40,199
)
    
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
   
$21,092
   
$38,140
   
$315
 
   
($5,071
)
   
($2,071
)
     
($78
)
   
($35,337
)
   
($18,092
)
   
($40,719
)
    
 
(1) Operations commenced during 2002 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

G-8

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2002
(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
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                                 
Net investment loss .
  
($1,031
)
     
($109
)
   
($278
)
     
($224
)
   
($330
)
     
($243
)
     
($65
)
     
($73
)
Net realized loss
from security transactions
  
(7,264
)
     
(2,896
)
   
(5,289
)
     
(2,626
)
   
(8,513
)
     
(14,702
)
     
(7,512
)
     
(1,106
)
Net unrealized appreciation (depreciation)
on investments
  
(21,211
)
     
1,672
 
   
4,442
 
     
(4,907
)
   
(3,800
)
     
(272
)
     
4,393
 
     
(223
)
   
Net Decrease in Net Assets
Resulting from Operations
  
(29,506
)
     
(1,333
)
   
(1,125
)
     
(7,757
)
   
(12,643
)
     
(15,217
)
     
(3,184
)
     
(1,402
)
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                                 
Transfer of net premiums
  
1,472
 
     
175
 
   
442
 
     
304
 
   
480
 
     
1,085
 
     
67
 
     
92
 
Transfers between variable accounts, net
  
6,195
 
     
(12,497
)
   
(7,046
)
     
4,481
 
   
(2,032
)
     
(8,756
)
     
(1,047
)
     
(225
)
Transfers—policy charges and deductions
  
(719
)
     
(96
)
   
(322
)
     
(132
)
   
(355
)
     
(616
)
     
(43
)
     
(33
)
Transfers—surrenders
  
(11,655
)
     
(1,018
)
   
(5,799
)
     
(3,456
)
   
(6,200
)
     
(9,677
)
     
(505
)
     
(1,126
)
Transfers—other .
  
(2
)
     
1
 
   
1
 
     
2
 
   
1
 
     
3
 
     
—
 
     
7
 
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
(4,709
)
     
(13,435
)
   
(12,724
)
     
1,199
 
   
(8,106
)
     
(17,961
)
     
(1,528
)
     
(1,285
)
   
NET DECREASE IN NET ASSETS
  
(34,215
)
     
(14,768
)
   
(13,849
)
     
(6,558
)
   
(20,749
)
     
(33,178
)
     
(4,712
)
     
(2,687
)
   
NET ASSETS
                                                                 
Beginning of Year
  
109,474
 
     
17,972
 
   
42,264
 
     
28,999
 
   
47,939
 
     
95,728
 
     
9,173
 
     
7,540
 
   
End of Year
  
$75,259
 
     
$3,204
 
   
$28,415
 
     
$22,441
 
   
$27,190
 
     
$62,550
 
     
$4,461
 
     
$4,853
 
   
 
See Notes to Financial Statements

G-9

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2002
(In thousands)
 
    
Health Sciences Variable Account
       
Technology Variable Account
       
Telecom-
munications Variable Account
     
Multi-
Strategy Variable Account
     
Large-Cap Core Variable Account (1)
     
Strategic Value Variable Account
     
Growth
LT
Variable Account
     
Focused 30 Variable Account
  
    
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                            
Net investment income (loss) .
   
($101
)
     
($48
)
     
($13
)
   
$2,345
 
   
($1,543
)
   
($115
)
   
($915
)
   
($63
)
Net realized loss
from security transactions
   
(710
)
     
(2,128
)
     
(841
)
   
(6,311
)
   
(20,851
)
   
(2,368
)
   
(39,081
)
   
(2,355
)
Net unrealized appreciation (depreciation)
on investments
   
(1,550
)
     
(562
)
     
27
 
   
(18,261
)
   
(75,144
)
   
(442
)
   
(118,708
)
   
231
 
    
Net Decrease in Net Assets
Resulting from Operations
   
(2,361
)
     
(2,738
)
     
(827
)
   
(22,227
)
   
(97,538
)
   
(2,925
)
   
(158,704
)
   
(2,187
)
    
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                            
Transfer of net premiums
   
107
 
     
49
 
     
28
 
   
789
 
   
2,052
 
   
64
 
   
3,550
 
   
35
 
Transfers between variable accounts, net
   
(647
)
     
799
 
     
725
 
   
(18,744
)
   
(45,136
)
   
(1,119
)
   
(57,375
)
   
(2,116
)
Transfers—policy charges and deductions
   
(60
)
     
(22
)
     
(2
)
   
(2,109
)
   
(3,508
)
   
(101
)
   
(4,233
)
   
(63
)
Transfers—surrenders
   
(1,301
)
     
(689
)
     
(188
)
   
(19,150
)
   
(37,664
)
   
(1,549
)
   
(59,334
)
   
(897
)
Transfers—other
   
—
 
     
2
 
     
—
 
   
(2
)
   
(3
)
   
15
 
   
22
 
   
—
 
    
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
   
(1,901
)
     
139
 
     
563
 
   
(39,216
)
   
(84,259
)
   
(2,690
)
   
(117,370
)
   
(3,041
)
    
NET DECREASE IN NET ASSETS
   
(4,262
)
     
(2,599
)
     
(264
)
   
(61,443
)
   
(181,797
)
   
(5,615
)
   
(276,074
)
   
(5,228
)
    
NET ASSETS
                                                            
Beginning of Year
   
10,273
 
     
6,152
 
     
1,696
 
   
166,538
 
   
366,993
 
   
12,234
 
   
570,631
 
   
8,934
 
    
End of Year
   
$6,011
 
     
$3,553
 
     
$1,432
 
   
$105,095
 
   
$185,196
 
   
$6,619
 
   
$294,557
 
   
$3,706
 
    
 
(1) Formerly named Equity Income Variable Account.
 
See Notes to Financial Statements

G-10

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2002
(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
     
Real
Estate Variable Account (1)
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                         
Net investment income (loss)
  
$6,598
 
     
($1,057
)
   
($249
)
   
($111
)
   
($34
)
   
$28,025
 
   
($168
)
   
$1,804
 
Net realized gain (loss)
from security transactions
  
(6,436
)
     
(35,617
)
   
(5,134
)
   
(2,973
)
   
(399
)
   
2,438
 
   
(5,767
)
   
(1,734
)
Net unrealized depreciation
on investments
  
(20,121
)
     
(2,512
)
   
(2,664
)
   
(3,289
)
   
(231
)
   
(124,003
)
   
(7,026
)
   
(2,081
)
   
Net Decrease in Net Assets
Resulting from Operations
  
(19,959
)
     
(39,186
)
   
(8,047
)
   
(6,373
)
   
(664
)
   
(93,540
)
   
(12,961
)
   
(2,011
)
   
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
                                                         
Transfer of net premiums
  
1,591
 
     
2,963
 
   
498
 
   
162
 
   
60
 
   
3,021
 
   
537
 
   
538
 
Transfers between variable accounts, net
  
(20,113
)
     
(33,527
)
   
(1,548
)
   
4,691
 
   
387
 
   
(43,726
)
   
26,230
 
   
4,205
 
Transfers—policy charges and deductions
  
(1,014
)
     
(2,749
)
   
(186
)
   
(60
)
   
(27
)
   
(3,770
)
   
(275
)
   
(330
)
Transfers—surrenders
  
(18,313
)
     
(36,059
)
   
(2,663
)
   
(1,337
)
   
(404
)
   
(47,579
)
   
(4,747
)
   
(6,891
)
Transfers—other
  
8
 
     
—
 
   
—
 
   
(1
)
   
1
 
   
(9
)
   
2
 
   
7
 
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
(37,841
)
     
(69,372
)
   
(3,899
)
   
3,455
 
   
17
 
   
(92,063
)
   
21,747
 
   
(2,471
)
   
NET INCREASE (DECREASE) IN NET ASSETS
  
(57,800
)
     
(108,558
)
   
(11,946
)
   
(2,918
)
   
(647
)
   
(185,603
)
   
8,786
 
   
(4,482
)
   
NET ASSETS
                                                         
Beginning of Year
  
136,622
 
     
311,488
 
   
30,812
 
   
12,064
 
   
2,759
 
   
438,710
 
   
26,635
 
   
40,470
 
   
End of Year
  
$78,822
 
     
$202,930
 
   
$18,866
 
   
$9,146
 
   
$2,112
 
   
$253,107
 
   
$35,421
 
   
$35,988
 
   
 
(1) Formerly named REIT Variable Account.
 
See Notes to Financial Statements

G-11

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2002
(In thousands)
 
   
Inflation Managed Variable Account
     
Managed Bond Variable Account
     
Money Market Variable Account
     
High Yield Bond Variable Account
     
Equity Income Variable Account (1)
     
Research Variable Account (1)
     
Equity Variable Account
     
Aggressive Equity Variable Account
     
 Large-Cap      Value         Variable     Account
  
   
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
                                                              
Net investment income (loss)
  
$1,987
 
   
$17,376
 
   
$293
 
   
$8,247
 
   
$23
 
   
($1
)
   
($978
)
   
($659
)
   
($520
)
Net realized gain (loss)
from security transactions
  
420
 
   
3,884
 
   
93
 
   
(16,829
)
   
(1,172
)
   
(54
)
   
(19,205
)
   
(8,185
)
   
(11,966
)
Net unrealized appreciation (depreciation)
on investments
  
18,685
 
   
16,880
 
   
(71
)
   
3,511
 
   
(922
)
   
(23
)
   
(15,154
)
   
(9,248
)
   
(28,233
)
   
Net Increase (Decrease) in Net Assets
Resulting from Operations
  
21,092
 
   
38,140
 
   
315
 
   
(5,071
)
   
(2,071
)
   
(78
)
   
(35,337
)
   
(18,092
)
   
(40,719
)
   
INCREASE (DECREASE) IN NET ASSETS
                                                              
FROM POLICY TRANSACTIONS
                                                              
Transfer of net premiums
  
1,535
 
   
4,554
 
   
3,866
 
   
991
 
   
183
 
   
13
 
   
946
 
   
603
 
   
2,145
 
Transfers between variable accounts, net
  
89,123
 
   
(86,825
)
   
32,147
 
   
(9,434
)
   
18,086
 
   
2,115
 
   
(21,327
)
   
5,903
 
   
(4,196
)
Transfers—policy charges and deductions
  
(1,932
)
   
(5,437
)
   
(4,556
)
   
(1,659
)
   
(117
)
   
(12
)
   
(1,235
)
   
(554
)
   
(1,186
)
Transfers—surrenders
  
(28,607
)
   
(65,776
)
   
(89,397
)
   
(19,220
)
   
(2,056
)
   
(65
)
   
(15,135
)
   
(8,185
)
   
(20,306
)
Transfers—other
  
5
 
   
(2
)
   
—
 
   
(17
)
   
4
 
   
—
 
   
(11
)
   
5
 
   
17
 
   
Net Increase (Decrease) in Net Assets
Derived from Policy Transactions
  
60,124
 
   
(153,486
)
   
(57,940
)
   
(29,339
)
   
16,100
 
   
2,051
 
   
(36,762
)
   
(2,228
)
   
(23,526
)
   
NET INCREASE (DECREASE) IN NET ASSETS
  
81,216
 
   
(115,346
)
   
(57,625
)
   
(34,410
)
   
14,029
 
   
1,973
 
   
(72,099
)
   
(20,320
)
   
(64,245
)
   
NET ASSETS
                                                              
Beginning of Year
  
115,108
 
   
494,830
 
   
221,311
 
   
130,989
 
   
—
 
   
—
 
   
142,911
 
   
59,798
 
   
181,681
 
   
End of Year
  
$196,324
 
   
$379,484
 
   
$163,686
 
   
$96,579
 
   
$14,029
 
   
$1,973
 
   
$70,812
 
   
$39,478
 
   
$117,436
 
   
 
(1) Operations commenced during 2002 (see Note 1 to Financial Statements).
 
See Notes to Financial Statements

G-12

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS 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 on January 2, 2001 for the Blue Chip, Aggressive Growth, and Financial Services Variable Accounts.
 
See Notes to Financial Statements

G-13

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS 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
     
Large-Cap Core Variable Account (2)
     
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 on January 2, 2001 for the Health Sciences, Technology, and Telecommunications Variable Accounts.
 
(2) Formerly named Equity Income Variable Account.
 
See Notes to Financial Statements

G-14

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS 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
     
Real
Estate Variable Account (2)
  
   
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 on January 2, 2001 for the Capital Opportunities, Mid-Cap Growth, and Global Growth Variable Accounts.
 
(2) Formerly named REIT Variable Account.
 
See Notes to Financial Statements

G-15

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2001
(In thousands)
 
   
Inflation Managed Variable Account
     
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
 
   
 
See Notes to Financial Statements

G-16

 

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS

 

Selected accumulation unit value (AUV), total units outstanding, total net assets, ratios of investment income to average daily net assets, and total returns for the years ended December 31, 2002 and 2001 are shown in the table below. The  ratio of expenses to average daily net assets for each of the Variable Accounts was 1.25% for the years ended  December 31, 2002 and 2001.

 

For the Year or Period
Ended

   

AUV

at

End

of Year

     

Number

of

Units

Outstanding

   

Total

Net

Assets

(in $000’s)

     

Ratios of

Investment

Income to

Average Net

Assets (1)

     

Total

Returns (2)

  

Blue Chip

                                 

2002

   

$5.88

     

12,794,576

   

$75,259

     

0.11

%

   

(26.86

%)

01/02/2001 – 12/31/2001

   

8.04

     

13,611,930

   

109,474

     

0.11

%

   

(19.58

%)

Aggressive Growth

                                 

2002

   

$6.08

     

527,332

   

$3,204

     

0.00

%

   

(23.30

%)

01/02/2001 – 12/31/2001

   

7.92

     

2,268,467

   

17,972

     

0.00

%

   

(20.77

%)

Emerging Markets

                                 

2002

   

 $5.59

     

5,080,084

   

$28,415

     

0.51

%

   

(4.27

%)

2001

   

5.84

     

7,233,057

   

42,264

     

0.13

%

   

(9.82

%)

Diversified Research

                                 

2002

   

 $7.83

     

2,866,659

   

$22,441

     

0.29

%

   

(25.14

%)

2001

   

10.46

     

2,773,119

   

28,999

     

0.23

%

   

(3.96

%)

Small-Cap Equity

                                 

2002

   

$25.77

     

1,055,078

   

$27,190

     

0.45

%

   

(24.53

%)

2001

   

34.15

     

1,403,861

   

47,939

     

14.91

%

   

(3.77

%)

International Large-Cap

                                 

2002

   

$5.09

     

12,292,762

   

$62,550

     

0.94

%

   

(18.65

%)

2001

   

6.25

     

15,304,319

   

95,728

     

0.84

%

   

(19.31

%)

I-Net Tollkeeper

                                 

2002

   

$2.66

     

1,675,888

   

$4,461

     

0.00

%

   

(39.38

%)

2001

   

4.39

     

2,089,045

   

9,173

     

0.00

%

   

(34.72

%)

Financial Services

                                 

2002

   

$7.72

     

628,358

   

$4,853

     

0.20

%

   

(15.65

%)

01/02/2001 – 12/31/2001

   

9.16

     

823,451

   

7,540

     

0.35

%

   

(8.43

%)

Health Sciences

                                 

2002

   

$6.91

     

870,570

   

$6,011

     

0.00

%

   

(24.26

%)

01/02/2001 – 12/31/2001

   

9.12

     

1,126,834

   

10,273

     

0.00

%

   

(8.83

%)

Technology

                                 

2002

   

$3.09

     

1,149,444

   

$3,553

     

0.00

%

   

(47.01

%)

01/02/2001 – 12/31/2001

   

5.83

     

1,054,641

   

6,152

     

0.00

%

   

(41.67

%)

Telecommunications

                                 

2002

   

$2.75

     

520,588

   

$1,432

     

0.01

%

   

(47.72

%)

01/02/2001 – 12/31/2001

   

5.26

     

322,367

   

1,696

     

0.09

%

   

(47.38

%)

Multi-Strategy

                                 

2002

   

$23.89

     

4,399,716

   

$105,095

     

3.02

%

   

(14.15

%)

2001

   

27.82

     

5,985,636

   

166,538

     

2.68

%

   

(2.39

%)

Large-Cap Core (3)

                                 

2002

   

$22.07

     

8,390,555

   

$185,196

     

0.67

%

   

(29.29

%)

2001

   

31.22

     

11,756,550

   

366,993

     

1.72

%

   

(10.01

%)

Strategic Value

                                 

2002

   

$6.67

     

992,013

   

$6,619

     

0.12

%

   

(23.12

%)

2001

   

8.68

     

1,409,565

   

12,234

     

0.37

%

   

(10.99

%)

Growth LT

                                 

2002

   

$22.24

     

13,242,258

   

$294,557

     

1.03

%

   

(29.86

%)

2001

   

31.71

     

17,994,286

   

570,631

     

16.84

%

   

(30.44

%)

Focused 30

                                 

2002

   

$4.91

     

754,441

   

$3,706

     

0.16

%

   

(30.29

%)

2001

   

7.05

     

1,267,953

   

8,934

     

0.07

%

   

(14.44

%)

Mid-Cap Value

                                 

2002

   

$12.12

     

6,501,783

   

$78,822

     

7.04

%

   

(15.52

%)

2001

   

14.35

     

9,519,914

   

136,622

     

3.42

%

   

11.89

% 

International Value

                                 

2002

   

$11.81

     

17,184,202

   

$202,930

     

0.84

%

   

(14.98

%)

2001

   

13.89

     

22,426,166

   

311,488

     

2.65

%

   

(22.85

%)

 

See Notes to Financial Statements

   

See explanation of references on H-2

 

H-1

 

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS (Continued)

 

For the Year or Period
Ended

   

AUV
at
End of Year

     

Number
of
Units Outstanding

   

Total

Net

Assets (in $000's)

     

Ratios of Investment Income to Average Net Assets (1)

     

Total Returns (2)

  

Capital Opportunities

                                 

2002

   

$6.03

     

3,127,234

   

$18,866

     

0.18

%

   

(27.69

%)

01/02/2001 – 12/31/2001

   

8.34

     

3,693,166

   

30,812

     

0.17

%

   

(16.57

%)

Mid-Cap Growth

                                 

2002

   

$4.19

     

2,180,363

   

$9,146

     

0.00

%

   

(47.69

%)

01/02/2001 – 12/31/2001

   

8.02

     

1,504,437

   

12,064

     

0.00

%

   

(19.81

%)

Global Growth

                                 

2002

   

$6.68

     

316,264

   

$2,112

     

0.00

%

   

(20.49

%)

01/02/2001 – 12/31/2001

   

8.40

     

328,537

   

2,759

     

0.00

%

   

(16.03

%)

Equity Index

                                 

2002

   

$25.18

     

10,053,324

   

$253,107

     

9.54

%

   

(23.31

%)

2001

   

32.83

     

13,363,360

   

438,710

     

1.40

%

   

(13.25

%)

Small-Cap Index

                                 

2002

   

$8.78

     

4,035,481

   

$35,421

     

0.78

%

   

(22.17

%)

2001

   

11.28

     

2,361,793

   

26,635

     

8.50

%

   

0.46

% 

Real Estate (4)

                                 

2002

   

$13.63

     

2,639,881

   

$35,988

     

5.30

%

   

(1.56

%)

2001

   

13.85

     

2,922,345

   

40,470

     

3.70

%

   

7.19

%  

Inflation Managed

                                 

2002

   

$23.36

     

8,405,588

   

$196,324

     

2.47

%

   

14.02

% 

2001

   

20.48

     

5,619,239

   

115,108

     

3.65

%

   

2.96

% 

Managed Bond

                                 

2002

   

$24.06

     

15,775,303

   

$379,484

     

5.30

%

   

9.55

% 

2001

   

21.96

     

22,535,629

   

494,830

     

5.12

%

   

5.99

% 

Money Market

                                 

2002

   

$14.83

     

11,037,212

   

$163,686

     

1.40

%

   

0.15

% 

2001

   

14.81

     

14,945,680

   

221,311

     

3.71

%

   

2.57

% 

High Yield Bond

                                 

2002

   

$20.96

     

4,608,773

   

$96,579

     

8.70

%

   

(4.21

%)

2001

   

21.88

     

5,987,487

   

130,989

     

9.73

%

   

0.08

% 

Equity Income (5)

                                 

01/02/2002 – 12/31/2002

   

$8.54

     

1,642,668

   

$14,029

     

1.48

%

   

(14.60

%)

Research (5)

                                 

01/02/2002 – 12/31/2002

   

$7.79

     

253,435

   

$1,973

     

1.05

%

   

(22.13

%)

Equity

                                 

2002

   

$13.17

     

5,374,870

   

$70,812

     

0.31

%

   

(27.42

%)

2001

   

18.15

     

7,872,674

   

142,911

     

5.99

%

   

(22.74

%)

Aggressive Equity

                                 

2002

   

$7.26

     

5,437,137

   

$39,478

     

0.00

%

   

(26.03

%)

2001

   

9.82

     

6,092,175

   

59,798

     

0.00

%

   

(18.28

%)

Large-Cap Value

                                 

2002

   

$9.07

     

12,940,961

   

$117,436

     

0.90

%

   

(23.92

%)

2001

   

11.93

     

15,232,214

   

181,681

     

4.35

%

   

(4.85

%)

 

(1)   The ratios of investment income to average daily net assets are annualized for periods of less than one full year.

 

(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 to Financial Statements. 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)   The Large-Cap Core Variable Account was formerly named Equity Income Variable Account.

 

(4)   The Real Estate Variable Account was formerly named REIT Variable Account.

 

(5)   Operations commenced during 2002 (See Note 1 to Financial Statements).

 

See Notes to Financial Statements

     

 

H-2

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, 2002 is comprised of thirty-three 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, Telecom-munications, Multi-Strategy, Large-Cap Core (formerly 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, Real Estate (formerly REIT), Inflation Managed, Managed Bond, Money Market, High Yield Bond, Equity Income, Research, 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 F of this brochure 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 two new Variable Accounts that began operations in 2002: the Equity Income and Research Variable Accounts. Both Variable Accounts commenced operations on January 2, 2002.

 

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 2002, 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.

 

I-1

 

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued)

 

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 December 31, 2002 were as follows (amounts in thousands):

 

    

Variable Accounts

  
    
    

Blue

Chip

     

Aggressive Growth

     

Emerging Markets

     

Diversified Research

     

Small-Cap Equity

     

International Large-Cap

  
    

Total cost of investments at beginning of year

   

$124,797

 

   

$20,078

 

   

$50,451

 

   

$28,529

 

   

$51,278

 

   

$121,745

 

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

   

11,120

 

   

3,898

 

   

5,772

 

   

12,640

 

   

11,987

 

   

7,651

 

Reinvested distributions from the Fund:

                                          

(a) Dividends from net investment income

   

96

 

   

—

 

   

188

 

   

66

 

   

181

 

   

720

 

(b) Distributions from capital gains

   

—

 

   

—

 

   

—

 

   

—

 

   

—

 

   

—

 

    

Sub-Total

   

136,013

 

   

23,976

 

   

56,411

 

   

41,235

 

   

63,446

 

   

130,116

 

Less:    Cost of investments disposed during the year

   

24,219

 

   

20,337

 

   

24,251

 

   

14,357

 

   

29,117

 

   

41,277

 

    

Total cost of investments at end of year

   

111,794

 

   

3,639

 

   

32,160

 

   

26,878

 

   

34,329

 

   

88,839

 

Add:    Unrealized depreciation

   

(36,535

)

   

(435

)

   

(3,745

)

   

(4,437

)

   

(7,139

)

   

(26,289

)

    

Total market value of investments at end of year

   

$75,259

 

   

$3,204

 

   

$28,415

 

   

$22,441

 

   

$27,190

 

   

$62,550

 

    
    

I-Net

Tollkeeper

     

Financial Services

     

Health Sciences

     

Tech-

nology

     

Telecom-

munications

     

Multi-

Strategy

  
    

Total cost of investments at beginning of year

   

$15,762

 

   

$7,637

 

   

$9,306

 

   

$6,649

 

   

$2,086

 

   

$156,962

 

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

   

2,673

 

   

5,998

 

   

4,602

 

   

3,993

 

   

1,313

 

   

4,205

 

Reinvested distributions from the Fund:

                                          

(a) Dividends from net investment income

   

—

 

   

14

 

   

—

 

   

—

 

   

—

 

   

2,516

 

(b) Distributions from capital gains

   

—

 

   

—

 

   

—

 

   

—

 

   

—

 

   

1,491

 

    

Sub-Total

   

18,435

 

   

13,649

 

   

13,908

 

   

10,642

 

   

3,399

 

   

165,174

 

Less:    Cost of investments disposed during the year

   

11,779

 

   

8,476

 

   

7,313

 

   

6,029

 

   

1,604

 

   

51,394

 

    

Total cost of investments at end of year

   

6,656

 

   

5,173

 

   

6,595

 

   

4,613

 

   

1,795

 

   

113,780

 

Add:    Unrealized depreciation

   

(2,195

)

   

(320

)

   

(584

)

   

(1,060

)

   

(363

)

   

(8,685

)

    

Total market value of investments at end of year

   

$4,461

 

   

$4,853

 

   

$6,011

 

   

$3,553

 

   

$1,432

 

   

$105,095

 

    
    

Large-Cap

Core (1)

     

Strategic Value

     

Growth

LT

     

Focused

30

     

Mid-Cap

Value

     

International Value

  
    

Total cost of investments at beginning of year

   

$323,780

 

   

$13,360

 

   

$496,786

 

   

$10,966

 

   

$114,767

 

   

$369,566

 

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

   

4,538

 

   

7,206

 

   

15,936

 

   

795

 

   

34,744

 

   

34,675

 

Reinvested distributions from the Fund:

                                          

(a) Dividends from net investment income

   

1,741

 

   

12

 

   

4,140

 

   

9

 

   

409

 

   

2,160

 

(b) Distributions from capital gains

   

—

 

   

—

 

   

—

 

   

—

 

   

7,619

 

   

—

 

    

Sub-Total

   

330,059

 

   

20,578

 

   

516,862

 

   

11,770

 

   

157,539

 

   

406,401

 

Less:    Cost of investments disposed during the year

   

112,932

 

   

12,391

 

   

177,442

 

   

6,263

 

   

80,451

 

   

142,880

 

    

Total cost of investments at end of year

   

217,127

 

   

8,187

 

   

339,420

 

   

5,507

 

   

77,088

 

   

263,521

 

Add:    Unrealized depreciation (appreciation)

   

(31,931

)

   

(1,568

)

   

(44,863

)

   

(1,801

)

   

1,734

 

   

(60,591

)

    

Total market value of investments at end of year

   

$185,196

 

   

$6,619

 

   

$294,557

 

   

$3,706

 

   

$78,822

 

   

$202,930

 

    
    

Capital Opportuni-

ties

     

Mid-Cap Growth

     

Global Growth

     

Equity

Index

     

Small-Cap

Index

     

Real

Estate (2)

  
    

Total cost of investments at beginning of year

   

$35,629

 

   

$12,706

 

   

$2,907

 

   

$289,523

 

   

$25,443

 

   

$34,259

 

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

   

6,017

 

   

7,961

 

   

1,494

 

   

33,919

 

   

49,772

 

   

21,819

 

Reinvested distributions from the Fund:

                                          

(a) Dividends from net investment income

   

42

 

   

—

 

   

—

 

   

4,073

 

   

278

 

   

1,027

 

(b) Distributions from capital gains

   

—

 

   

—

 

   

—

 

   

28,193

 

   

—

 

   

1,335

 

    

Sub-Total

   

41,688

 

   

20,667

 

   

4,401

 

   

355,708

 

   

75,493

 

   

58,440

 

Less:    Cost of investments disposed during the year

   

15,340

 

   

7,590

 

   

1,911

 

   

127,784

 

   

34,238

 

   

26,582

 

    

Total cost of investments at end of year

   

26,348

 

   

13,077

 

   

2,490

 

   

227,924

 

   

41,255

 

   

31,858

 

Add:    Unrealized appreciation (depreciation)

   

(7,482

)

   

(3,931

)

   

(378

)

   

25,183

 

   

(5,834

)

   

4,130

 

    

Total market value of investments at end of year

   

$18,866

 

   

$9,146

 

   

$2,112

 

   

$253,107

 

   

$35,421

 

   

$35,988

 

    
(1) The Large-Cap Core Variable Account was formerly named Equity Income Variable Account.
(2) The Real Estate Variable Account was formerly named REIT Variable Account.

 

I-2

PACIFIC SELECT VARIABLE ANNUITY SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued)

 

 

   

Variable Accounts

  
   
   

Inflation Managed

    

Managed

Bond

    

Money

Market

  

High Yield Bond

     

Equity

Income (1)

     

Research (1)

    

Equity

  
   

Total cost of investments at beginning of year

  

$110,426

 

  

$479,190

 

  

$220,672

  

$153,980

 

   

$—

 

   

$—

 

  

$155,400

 

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

  

121,537

 

  

12,862

 

  

144,244

  

16,289

 

   

22,729

 

   

2,549

 

  

11,078

 

Reinvested distributions from the Fund:

                                          

(a) Dividends from net investment income

  

1,786

 

  

19,327

 

  

2,732

  

9,635

 

   

143

 

   

6

 

  

326

 

(b) Distributions from capital gains

  

2,224

 

  

3,425

 

  

—

  

—

 

   

—

 

   

—

 

  

—

 

   

Sub-Total

  

235,973

 

  

514,804

 

  

367,648

  

179,904

 

   

22,872

 

   

2,555

 

  

166,804

 

Less:     Cost of investments disposed during the year

  

63,016

 

  

167,839

 

  

204,530

  

63,845

 

   

7,921

 

   

559

 

  

68,348

 

   

Total cost of investments at end of year

  

172,957

 

  

346,965

 

  

163,118

  

116,059

 

   

14,951

 

   

1,996

 

  

98,456

 

Add:     Unrealized appreciation (depreciation)

  

23,367

 

  

32,519

 

  

568

  

(19,480

)

   

(922

)

   

(23

)

  

(27,644

)

   

Total market value of investments at end of year

  

$196,324

 

  

$379,484

 

  

$163,686

  

$96,579

 

   

$14,029

 

   

$1,973

 

  

$70,812

 

   
   

Aggressive Equity

    

Large-Cap      Value     

                                
   
                             

Total cost of investments at beginning of year

  

$64,911

 

  

$192,956

 

                              

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

  

22,723

 

  

17,336

 

                              

Reinvested distributions from the Fund:

                                          

(a) Dividends from net investment income

  

—

 

  

1,306

 

                              

(b) Distributions from capital gains

  

—

 

  

—

 

                              
   
                             

Sub-Total

  

87,634

 

  

211,598

 

                              

Less:    Cost of investments disposed during the year

  

33,794

 

  

54,654

 

                              
   
                             

Total cost of investments at end of year

  

53,840

 

  

156,944

 

                              

Add:    Unrealized depreciation

  

(14,362

)

  

(39,508

)

                              
   
                             

Total market value of investments at end of year

  

$39,478

 

  

$117,436

 

                              
   
                             

 

(1) Operations commenced during 2002 (see Note 1 to Financial Statements).

 

 

I-3

INDEPENDENT AUDITORS’ REPORT

 

The Board of Directors

Pacific Life Insurance Company

 

We have audited the accompanying statements 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, Large-Cap Core (formerly 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, Real Estate (formerly REIT), Inflation Managed, Managed Bond, Money Market, High Yield Bond, Equity Income, Research, Equity, Aggressive Equity, and Large-Cap Value Variable Accounts) as of December 31, 2002, the related statements of operations for the year then ended (as to the Equity Income and Research Variable Accounts, for the period from commencement of operations through December 31, 2002), and the statements of changes in net assets and financial highlights for each of the two years in the period 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 year ended December 31, 2002, and for the period from commencement of operations through December 31, 2001, and as to the Equity Income and Research Variable Accounts, for the period from commencement of operations through December 31, 2002). 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, 2002. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements 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, 2002, the results of their operations, the changes in their net assets, and the related financial highlights 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 14, 2003

 

 

 

J-1

Annual Reports

as of December 31, 2002

 

•   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

P.O. Box 7187

Pasadena, California 91109-7187

 

ADDRESS SERVICE REQUESTED

 

 

 

 

Form No. 302-3A