-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FxqIX8W1H3L1Pr8dpyt9o0W6pRS0LscPPD4zaNJ8pc0JeZdijdl4VAqJo7ZRCnen tVFQnEcRjCWJf5/TLqAXSA== 0000073711-96-000004.txt : 19960301 0000073711-96-000004.hdr.sgml : 19960301 ACCESSION NUMBER: 0000073711-96-000004 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960229 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANSAMERICA OCCIDENTALS SEPARATE ACCOUNT FUND C CENTRAL INDEX KEY: 0000073711 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 951060502 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02025 FILM NUMBER: 96529061 BUSINESS ADDRESS: STREET 1: 1150 S OLIVE ST CITY: LOS ANGELES STATE: CA ZIP: 90015 BUSINESS PHONE: 2137426521 MAIL ADDRESS: STREET 1: 1150 S OLIVE ST CITY: LOS ANGELES STATE: CA ZIP: 90015 FORMER COMPANY: FORMER CONFORMED NAME: OCCIDENTALS SEPARATE ACCOUNT FUND C DATE OF NAME CHANGE: 19811209 N-30D 1 ANNUAL REPORT FILING PURSUANT TO RULE 30B2-1. ANNUAL REPORT TRANSAMERICA OCCIDENTAL'S SEPARATE ACCOUNT FUND C Transamerica Occidental Separate Account Fund C's total return for 1995 was 52.84% after fees compared to a total return of 37.58% for the S&P 500. The Fund's 5-year compound annual return is 26.13% after fees, or a total return of 219.21% versus the S&P 500 compound annual return of 16.59%, or a total return of 115.46%. Performance was strong across all areas of the Fund's investments. In contrast to 1994, 1995 was a plentiful year for the financial markets as many fundamental factors fell into perfect alignment. The economy slowed, inflation worries abated, the Federal Reserve eased, and interest rates fell. These factors set the stage for an explosive rally in the stock market. Investors flocked to equity funds to take advantage of these favorable conditions pouring over $100 billion into equity mutual funds -- an all-time record. The outlook for 1996 is for continued economic growth with low inflation. Productivity gains and fierce worldwide competition will continue to keep inflation in check. Real economic growth should slow to a more sustainable pace of 2.0% to 2.5%. Stock market returns should be good but perhaps not as easy to come by as in 1995. The Fund's strategy of being a long-term investor in preeminent companies will continue in 1996. Investments in companies like Intel, Microsoft, Walt Disney, and Gillette are one of the reasons the Fund has achieved compound returns in excess of 25%. These companies are not only leading American companies, but over the years, have developed into leading international companies. [SIGNATURE] Gary U. Rolle Chairman, Board of Managers Transamerica Occidental's Separate Account Fund C 1 TABLE OF ACCUMULATION UNIT VALUES
Accumulation End of Quarter Unit Value ------------ December, 1985................. $ 2.952498 March, 1986.................... 3.411132 June, 1986..................... 3.650298 September, 1986................ 3.219560 December, 1986................. 3.293354 March, 1987.................... 3.973170 June, 1987..................... 4.338086 September, 1987................ 4.775859 December, 1987................. 3.708451 March, 1988.................... 4.334971 June, 1988..................... 4.865491 September, 1988................ 5.053693 December, 1988................. 4.958858 March, 1989.................... 5.378070 June, 1989..................... 6.190418 September, 1989................ 6.892439 December, 1989................. 6.623246 March, 1990.................... 6.464164 June, 1990..................... 6.868643 September, 1990................ 5.454107 December, 1990................. 5.884997 March, 1991.................... 7.293164 June, 1991..................... 7.220767 September, 1991................ 7.543333 December, 1991................. 8.280727 March, 1992.................... 8.255356 June, 1992..................... 8.091654 September, 1992................ 8.389207 December, 1992................. 9.384407 March, 1993.................... 9.911080 June, 1993..................... 10.297556 September, 1993................ 11.486086 December, 1993................. 11.467367 March, 1994.................... 11.092828 June, 1994..................... 10.580454 September, 1994................ 11.536962 December, 1994................. 12.290689 March, 1995.................... 13.994468 June, 1995..................... 16.422538 September, 1995................ 18.967824 December, 1995................. 18.785670
The table above covers the period from December, 1985 to December 31, 1995. The results shown should not be considered a representation of the gain or loss which may be realized from an investment made in the Fund today. 2 TRANSAMERICA OCCIDENTAL'S SEPARATE ACCOUNT FUND C PORTFOLIO OF INVESTMENTS/DECEMBER 31, 1995
Number of Market Shares Common Stock Value(1) - ------- --------------------------------- ----------- CONSUMER & BUSINESS SERVICES 19.4% 25,000 Autodesk Inc. $ 856,250 22,000 Broderbund Software, Inc.* 1,336,500 15,000 CUC International* 511,875 16,000 Intuit, Inc.* 1,248,000 12,000 Microsoft Corporation* 1,053,000 ----------- 5,005,625 FINANCIAL SERVICES 8.5% 22,000 Franklin Resources Inc. 1,108,250 54,000 Schwab (Charles) Inc. 1,086,750 ----------- 2,195,000 INDUSTRIAL TECHNOLOGY 17.7% 26,000 Dell Computer Corp.* 900,250 30,000 Intel Corporation 1,702,500 30,000 Millipore Corporation 1,233,750 23,437 Molex Incorporated, CI A 717,758 ----------- 4,554,258 INDUSTRIAL GROWTH/ SPECIAL SITUATIONS 12.4% 12,000 Briggs & Stratton Corp. 520,500 18,000 Gillette Company 938,250 31,250 Mattel, Inc. 960,938 12,000 United Healthcare Inc. 784,500 ----------- 3,204,188 Number of Market Shares Common Stock Value(1) - ------- --------------------------------- ----------- TELECOMMUNICATIONS & ENTERTAINMENT 11.7% 16,000 Motorola Inc. 912,000 46,000 Silver King Communications Inc.* 1,598,500 25,000 Tele-Communications, Inc.* 496,875 ----------- 3,007,375 TRANSACTION PROCESSING 12.3% 32,359 First Data Corporation 2,164,008 30,000 Transaction Systems Architect* 1,012,500 ----------- 3,176,508 TRAVEL & LEISURE 15.5% 20,000 Disney (Walt) Company 1,177,500 82,500 Host Marriott Corporation* 1,082,812 50,000 Mirage Resorts Inc.* 1,725,000 ----------- 3,985,312 TOTAL COMMON STOCK (97.6%) $25,128,266 Cash, Cash Equivalents and Receivables Less Liabilities (2.4%) 609,779 ----------- NET ASSETS (100%) $25,738,045 ===========
- --------------- (1) Common stocks are valued at the last closing price for securities traded on a national stock exchange and the bid price for unlisted securities. * Indicates non-income producing stocks. See notes to financial statements. 3 TRANSAMERICA OCCIDENTAL'S SEPARATE ACCOUNT FUND C STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS: Investment in common stock -- at market value (cost $12,384,471).............. $25,128,266 Cash and cash equivalents..................................................... 600,190 Dividends and interest receivable............................................. 17,064 Miscellaneous accounts receivable............................................. 1,800 ----------- TOTAL ASSETS............................................................. $25,747,320 =========== LIABILITIES: Due to Transamerica Occidental's general account.............................. $ 9,275 ----------- TOTAL LIABILITIES........................................................ 9,275 NET ASSETS.................................................................... $25,738,045 =========== Net assets attributable to variable annuity contractholders -- 1,340,888.90 units at $18.785670 (Note E)................................................ $25,189,496 Reserves for retired annuitants (Note C)...................................... 548,549 ----------- $25,738,045 ===========
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31, -------------------------- 1995 1994 ----------- ----------- Net investment loss.............................................. $ (208,742) $ (129,480) Net realized gain from security transactions..................... 1,213,189 1,234,135 Net unrealized appreciation of investments....................... 8,056,995 64,204 ----------- ----------- Net increase in net assets resulting from operations............. 9,061,442 1,168,859 Variable annuity deposits (net of sales and administration expenses and applicable state premium taxes)................... 4,460 18,728 Payments to Contract Owners: Annuity payments............................................... (62,747) (48,557) Terminations and withdrawals................................... (559,646) (476,885) Adjustment for mortality guarantees on retired annuitants........ 27,121 21,659 ----------- ----------- Total increase in net assets..................................... 8,470,630 683,804 Balance at beginning of year..................................... 17,267,415 16,583,611 ----------- ----------- Balance at end of year........................................... $25,738,045 $17,267,415 =========== ===========
See notes to financial statements. 4 TRANSAMERICA OCCIDENTAL'S SEPARATE ACCOUNT FUND C STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995 NET INVESTMENT INCOME INCOME: Dividends.................................................................. $ 84,254 Interest................................................................... 20,579 ---------- Total investment income.................................................. 104,833 EXPENSES (Note A): Investment management services............................................. 67,198 Mortality and expense risk charges......................................... 246,377 ---------- Total expenses........................................................... 313,575 ---------- Net investment loss........................................................... (208,742) ---------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS Realized gain from security transactions...................................... 1,213,189 Change in unrealized appreciation of investments.............................. 8,056,995 ---------- Net realized and unrealized gain on investments............................... 9,270,184 ---------- Net increase in net assets resulting from operations..................... $9,061,442 ==========
See notes to financial statements. TRANSAMERICA OCCIDENTAL'S SEPARATE ACCOUNT FUND C NOTES TO FINANCIAL STATEMENTS NOTE A -- ACCOUNTING POLICIES The fund is registered under the Investment Company Act of 1940 as an open-end diversified investment company. The funds investment objective is long-term capital growth. Investment in Securities Common stocks are valued at the last closing price for securities traded on a national stock exchange and the bid price for unlisted securities. The cost of securities purchased (excluding short-term investments) and proceeds from sales aggregated $4,047,672 and $4,977,340 in 1995. Investments in common stocks have a cost basis for federal income tax purposes of $12,384,471 at December 31, 1995. The Fund had gross unrealized gains of $12,743,795 at December 31, 1995 related to these investments. Realized gains and losses on investments are determined using the average cost method. Cash Equivalents Cash equivalents consist of money market funds invested daily from excess cash balances on deposit. 5 Federal Income Taxes Operations of the Fund will form a part of, and be taxed with, those of Transamerica Occidental Life, which is taxed as a "life insurance company" under the Internal Revenue Code. The Fund will not be taxed as a regulated investment company under subchapter M of the Internal Revenue Code. As under current law, income from assets maintained in the Fund for the exclusive benefit of participants is in general not subject to federal income tax, Transamerica Occidental Life will not charge the Fund for income taxes applicable to its investment in the Fund. Expenses The value of the Fund has been reduced by charges on each Valuation Date for investment management services on the basis of an annual rate of 0.3% and mortality and expense risks on the basis of an annual rate of 1.1%. These charges are paid to Transamerica Occidental Life. Other The fund follows industry practice and records security transactions on the trade date. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis. NOTE B -- TRANSAMERICA OCCIDENTAL LIFE INVESTMENT As of December 31, 1995, Transamerica Occidental Life had deposited $1,000,000 (current value of $19,169,930) in the Fund under an amendment to the California Insurance Code which permits domestic life insurers to allocate amounts to such accounts. Transamerica Occidental Life is entitled to withdraw all but $100,000 of its proportionate share of the Fund, in whole or in part, at any time. NOTE C -- RESERVES FOR RETIRED ANNUITANTS Reserves for retired annuitants are computed using The Annuity Table for 1949, ultimate, two year age setback and an assumed investment earnings rate of 3-1/2%. NOTE D -- REMUNERATION No remuneration was paid during 1995 by Transamerica Occidental's Separate Account Fund C to any member of the Board of Managers or officers of Fund C or any affiliated person of such members or officers. 6 FINANCIAL HIGHLIGHTS Selected data for an accumulation unit outstanding throughout each year are as follows:
1995 1994 1993 1992 1991 ------- -------- -------- ------ ------ Investment income............................ $ .070 $ .071 $ .080 $ .144 $ .121 Expenses..................................... .256 .161 .146 .118 .101 ------- -------- -------- ------ ------ Net investment income........................ (.151) (.090) (.066) .026 .020 Net realized and unrealized gain on investments................................ 6.646 .914 2.149 1.077 2.376 ------- -------- -------- ------ ------ Net increase in accumulation unit value............... 6.495 .824 2.083 1.103 2.396 Accumulation unit value: Beginning of year.......................... 12.291 11.467 9.384 8.281 5.885 ------- -------- -------- ------ ------ End of year................................ $18.786 $ 12.291 $ 11.467 $9.384 $8.281 ======= ======= ======= ====== ====== Ratio of expenses to average accumulation fund balance............................... 1.41 % 1.43 % 1.43 % 1.43% 1.43% Ratio of net investment (loss) income to average accumulation fund balance.......... (.94)% (.80)% (.65)% .31% .28% Portfolio turnover........................... 18.11 % 30.84 % 42.04 % 43.07% 32.90% Number of accumulation units outstanding at end of year (000 omitted)............... 1,341 1,373 1,412 1,452 1,472
7 TRANSAMERICA OCCIDENTAL'S SEPARATE ACCOUNT FUND C REPORT OF INDEPENDENT AUDITORS Unitholders and Board of Managers, Transamerica Occidental's Separate Account Fund C Board of Directors, Transamerica Occidental Life Insurance Company We have audited the accompanying statement of assets and liabilities of Transamerica Occidental's Separate Account Fund C, including the portfolio of investments, as of December 31, 1995, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements are the responsibility of Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Transamerica Occidental's Separate Account Fund C at December 31, 1995, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with generally accepted accounting principles. Los Angeles, California February 8, 1996 8 TRANSAMERICA OCCIDENTAL'S SEPARATE [LOGO] ACCOUNT FUND C MANAGERS AND OFFICERS DONALD E. CANTLAY, Manager RICHARD N. LATZER, Manager DeWAYNE W. MOORE, Manager GARY U. ROLLE, Chairman of the Board PETER J. SODINI, Manager TRANSAMERICA BARBARA A. KELLEY, President OCCIDENTAL'S PAUL L. NORRIS, Vice President SEPARATE SALLY S. YAMADA, Treasurer and ACCOUNT FUND C Assistant Secretary ANNUAL FINANCIAL THOMAS M. ADAMS, Secretary REPORT REGINA M. FINK, Assistant Secretary DECEMBER 31, 1995 Distributor: Transamerica Financial Resources, Inc. 1150 South Olive Los Angeles, California 90015-2211 Tel. (800) 245-8250 Custodian: Mellon Bank Securities Trust 1 Mellon Bank Ctr. Pittsburgh, PA 15258 Tel. (800) 234-6356 Auditors: Ernst & Young LLP 515 South Flower Street Los Angeles, California 90071 Tel. (213) 977-3200 Transamerica Occidental [LOGO] Life Insurance Company 1150 South Olive Los Angeles, California 90015-2211 Phone (800) 821-9090 This report cannot be used as sales literature. TFM 1037 Ed. 2-96 -----END PRIVACY-ENHANCED MESSAGE-----