UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-01356
THE PAUL REVERE VARIABLE ANNUITY
CONTRACT ACCUMULATION FUND
(Exact name of Registrant as specified in charter)
18 Chestnut Street
Worcester, MA 01608
(Address of principal executive offices)
CT Corporation System
101 Federal Street
Boston, MA 02110
(Name and address of agent for service)
Registrant’s telephone number, including area code: (508) 792-6358
Date of fiscal year end: December 31
Date of reporting period: January 1, 2009 – December 31, 2009
| Item 1. | Report to Stockholders. |
Annual Report
December 31, 2009
Board of Managers of
The Accumulation Fund:
David G. Fussell, Chairman
Joan Sadowsky
H. C. Goodwin
THE PAUL REVERE VARIABLE ANNUITY
CONTRACT ACCUMULATION FUND
A Separate Account of The Paul Revere
Variable Annuity Insurance Company
This report and the financial statements attached are submitted for the general information of contract owners and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale of The Paul Revere Variable Annuity Contract Accumulation Fund Variable Annuity Contracts (“Contracts”). Such offering is made only by prospectus, which includes details as to offering price and other material information.
TO OUR CONTRACT OWNERS AND PARTICIPANTS:
THE PAUL REVERE VARIABLE ANNUITY
CONTRACT ACCUMULATION FUND
VARIABLE ANNUITY CONTRACTS
After having suffered through one of the largest and most concentrated downturns since the 1930s, most asset markets staged a remarkable rebound during 2009. During the early stages of the period, a series of tumultuous financial events pushed global equity and credit markets to their lowest points during the crisis. Not only did Europe and Japan fall into very deep recessions, but an increasingly powerful engine of global growth – emerging markets – also contracted almost across the board. The subsequent recovery in global activity has been similarly synchronized, led importantly by emerging Asian economies, but broadening to include most of the global economy to varying degrees. Primary drivers of the recovery included an unwinding of the inventory destocking that took place earlier, as well as massive fiscal and monetary stimulus.
During the first half of the reporting period, the Federal Reserve Board of Governors implemented its final interest rate cut, while making increasing use of its new lending facilities to alleviate ever-tightening credit markets. On the fiscal front, the U.S. Treasury designed and began implementing a massive fiscal stimulus package. As inflationary concerns diminished in the face of global deleveraging and equity and credit markets deteriorated more sharply, central banks around the world also cut interest rates dramatically. By the middle of the period, several central banks had approached their lower bound on policy rates and were examining the implementation and ramifications of quantitative easing as a means to further loosen monetary policy to offset the continuing fall in global economic activity.
However, by the end of the period, there were ever-broadening signs that the global macroeconomic deterioration had passed, which caused the subsequent rise in asset valuations. As most asset prices rebounded in the second half of the period and the demand for liquidity waned, the debate concerning the existence of asset bubbles and the need for monetary exit strategies had begun, creating added uncertainty regarding the forward path of policy rates.
Against this backdrop, the portfolio outperformed the Russell 1000 Growth Index during 2009. Stock selection in the industrial goods & services, health care, leisure, and special products & services sectors contributed the most to relative performance. A modest cash position and an underweight in the technology sector had the biggest negative impact on relative performance.
At the end of the year, the portfolio’s largest overweight remained in the special products & services sector. Within the sector, we held several transaction processing companies that we believed were poised to benefit from the secular growth in electronic transactions around the globe as consumers move away from physical checks toward credit/debit cards and other electronic means. We also owned select high-quality outsourcing and consulting businesses with a global presence and competitive advantage we believed would help to sustain growth in a challenging environment.
Our health care weighting increased during the fourth quarter making it one of our largest overweights at year end. Within the sector, we increased our weightings in a number of our highest conviction names within the medical equipment industry where valuations appeared more attractive given the ongoing uncertainty around health care reform. Our medical equipment exposure generally consists of companies with long duration assets (limited near term patent expirations), enviable and dominant competitive position, and more manageable/limited government pressures. Our financial services exposure also increased to a moderate overweight, with exposure to select well-positioned trust banks, asset managers, and financial exchanges.
Our largest underweight was to the technology sector, where we were underweight in several of the large hardware manufacturers, software makers, and service providers that dominated the index. Elsewhere in the sector we were gradually shifting portfolio positioning towards stocks driven by more secular growth trends and reducing the higher cyclical exposure. This is mostly a function of how valuations have changed in a relatively short amount of time. We were also underweight in the leisure sector due to a lack of compelling growth opportunities in restaurants, casinos, hotels and other entertainment businesses. We continue to build the portfolio from the bottom up, focusing on high quality large cap companies that seek to deliver sustainable above-average growth to their shareholders.
Thank you for your continued support.
Sincerely, |
/s/ David G. Fussell |
David G. Fussell, Chairman, Board of Managers |
The Paul Revere Variable Annuity |
Contract Accumulation Fund |
At the Annual Meeting of Contract owners held on July 15, 2009, Contract owners of The Paul Revere Variable Annuity Contract Accumulation Fund (“Fund” or “Registrant”) voted to approve the filing of an application with the Securities and Exchange Commission (“SEC”) to terminate the Fund’s registration as an investment company. On October 19, 2009, subsequent to the Contract owner vote, the Fund filed an application for deregistration under the Investment Company Act of 1940, as amended (“1940 Act”). On January 13, 2009, the SEC issued an order terminating the Fund’s registration under the 1940 Act. The Fund intends to operate as a separate account exempt from registration under the 1940 Act until the remaining Contract owners are no longer invested in the Fund.
REMUNERATION OF THE BOARD OF MANAGERS
Unum Group paid all expenses relative to the operation of the Fund including Board of Managers’ fees. Accordingly, no member of the Board of Managers receives any remuneration from the Fund. The total aggregate remuneration paid to all members of the Board of Managers for the fiscal year ended December 31, 2009, was $3,000.00. This amount represents consideration paid for attendance at meetings of the Board of Managers. Those members of the Board of Managers deemed to be interested persons received direct remuneration or an indirect benefit as officers of The Paul Revere Variable Annuity Insurance Company (“PRV”). None of the members of the Board of Managers, or officers of the Fund, who are also officers or employees of PRV or its affiliates, received any remuneration from the Fund.
Information concerning the nominees for re-election, as well as members of the Board of Managers whose terms will continue, follows with the same abbreviations of company names as used previously. Unless the contractowner withholds authorization on the Proxy, it is intended that the interest represented by the Proxy will be voted in favor of the election of the nominees.
None of the members of the Board of Managers who are not “interested persons” of the Fund within the meaning of section 2(a)(19) of the 1940 Act owns beneficially or of record securities of PRV or any of its affiliates.
PROXY VOTING POLICIES
A description of the Fund’s proxy voting policy and procedures is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view a description of the Fund’s proxy voting policy and procedures on the SEC’s website, www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended is available via the methods noted above.
On July 15, 2009, the Fund held its Annual Meeting of Contract owners to vote on (i) the election of members to the Board of Managers, (ii) the ratification of the selection and appointment of Ernst & Young LLP as the Independent Auditors for the Fund, (iii) the approval of the filing of an application with the SEC to terminate the Fund’s registration as an investment company, (iv) the approval to make the Fund’s investment objective and all of its investment policies non-fundamental rather than fundamental, and (v) the transaction of such other business as may properly come before the meeting. At the meeting, a majority of Contract owners holding outstanding interests in the Fund voted (i) to elect Joan Sadowsky and David G. Fussell to the Board of Managers, and (ii) to ratify the selection and appointment of Ernst & Young LLP as the Independent Auditor for the Fund, (iii) to approve the filing of an application with the SEC to terminate the Fund’s registration as an investment company, and (iv) for the approval of making of the Fund’s investment objective and all of its investment policies non-fundamental rather than fundamental.
The final vote tallies for each item are as follows:
1. Election of two (2) members of the Board of Managers in accordance with the Rules and Regulations of the Fund;
| No. of Shares | % of Outstanding Shares | % of Shares Voted | ||||||
Joan Sadowsky | ||||||||
Affirmative | 39,146.403 | 53.676 | % | 87.595 | % | |||
Withhold | 5,543.660 | 7.601 | % | 12.405 | % | |||
TOTAL | 44,690.063 | 61.277 | % | 100.000 | % | |||
David G. Fussell | ||||||||
Affirmative | 39,146.403 | 53.676 | % | 87.595 | % | |||
Withhold | 5,543.660 | 7.601 | % | 12.405 | % | |||
TOTAL | 44,690.063 | 61.277 | % | 100.000 | % | |||
2. Ratification of the selection and appointment of Ernst & Young LLP as the Independent Auditors for the Fund in accordance with the Rules and Regulations of the Fund;
| No. of Shares | % of Outstanding Shares | % of Shares Voted | ||||||
Affirmative | 39,146.403 | 53.676 | % | 87.595 | % | |||
Against | 5,543.660 | 7.601 | % | 12.405 | % | |||
Abstain | .000 | .000 | % | .000 | % | |||
TOTAL | 44,690.063 | 61.277 | % | 100.000 | % | |||
3. Approval of the filing of an application with the Securities and Exchange Commission to terminate the Fund’s registration as an investment company;
| No. of Shares | % of Outstanding Shares | % of Shares Voted | ||||||
Affirmative | 38,361.944 | 52.600 | % | 85.840 | % | |||
Against | 6,328.119 | 8.677 | % | 14.160 | % | |||
Abstain | .000 | .000 | % | .000 | % | |||
TOTAL | 44,690.063 | 61.277 | % | 100.000 | % | |||
4. Approval to make the Fund’s investment objective and all of its investment policies non-fundamental rather than fundamental.
| No. of Shares | % of Outstanding Shares | % of Shares Voted | ||||||
Affirmative | 39,017.248 | 53.498 | % | 87.306 | % | |||
Against | 5,672.815 | 7.779 | % | 12.694 | % | |||
Abstain | .000 | .000 | % | .000 | % | |||
TOTAL | 44,690.063 | 61.277 | % | 100.000 | % | |||
QUARTERLY FILING REQUIREMENTS
In November 2004, the Fund began filing its complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q, which when filed, is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view its complete schedule of investments on Form N-Q on the SEC’s website, www.sec.gov.
STATEMENT OF ADDITIONAL INFORMATION
The Statement of Additional Information (“SAI”) includes additional information about members of the board of managers of the Registrant, and is available, without charge, upon request, toll-free at (800) 718-8824 for contract owners who call to request the SAI.
INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS
| (1) | (2) | (3) | (4) | (5) | (6) | |||||
Name, Address, and Age | Position(s) Held | Term of | Principal | Number of Fund Complex | Other | |||||
H. C. Goodwin (75) 11 Waters Road Millbury, MA 01527 | Member, Board of Managers | 2008-2011 7 years of service | Retired - President of Manufacturers Service Center, Inc. | 2 | None | |||||
Joan Sadowsky (80) 770 Salisbury Street Apt. 576 Worcester, MA 01609 | Member, Board of Managers | 2009-2012 23 years of service | Retired - Former Vice President of Human Resources, Atlas Distributing Corporation, Auburn, MA (beverage distribution) | 2 | None | |||||
The member of the Board of Managers listed below is an “interested person” of the Fund within the meaning of section 2(a)(19) of the 1940 Act.
INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS
(CONTINUED)
| (1) | (2) | (3) | (4) | (5) | (6) | |||||
Name, Address, and Age | Position(s) Held | Term of | Principal | Number of Fund Complex | Other | |||||
David G. Fussell (62) 259 Gnome Trail Lookout Mtn., GA 30750 | Chairman, Board of Managers | 2009-2012 7 years of service | Retired - Senior Vice President of Unum Group, Chattanooga, Tennessee | 2 | None |
None of the members of the Board of Managers who are not “interested persons” of the Fund within the meaning of section 2(a)(19) of the 1940 Act owns beneficially or of record securities of PRV or any of its affiliates.
FINANCIAL STATEMENTS
The Paul Revere Variable Annuity Contract Accumulation Fund
Years Ended December 31, 2009 and 2008
The Paul Revere Variable Annuity Contract Accumulation Fund
Audited Financial Statements
Years Ended December 31, 2009 and 2008
Contents
| 1 | ||
Audited Financial Statements | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 | ||
| 8 | ||
| 9 |
Report of Independent Registered Public Accounting Firm
The Owners and the Board of Managers
The Paul Revere Variable Annuity Contract Accumulation Fund of
The Paul Revere Variable Annuity Insurance Company
We have audited the accompanying statement of assets and liabilities of The Paul Revere Variable Annuity Contract Accumulation Fund (comprising the Qualified and Non-Qualified Portfolios) (Fund) as of December 31, 2009, including the schedule of investments as of December 31, 2009, 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 and financial highlights are the responsibility of the Fund’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 the standards of the Public Company Accounting Oversight Board (United States). 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. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The Paul Revere Variable Annuity Contract Accumulation Fund (comprising the Qualified and Non-Qualified Portfolios) at December 31, 2009, the results of their operations for the year then ended, the changes in their 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 U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chattanooga, Tennessee
March 1, 2010
1
The Paul Revere Variable Annuity Contract Accumulation Fund
Statement of Assets and Liabilities
December 31, 2009
| Series Q | Series N | |||||
| (Qualified) | (Non-Qualified) | |||||
Assets | ||||||
Investments in securities at market value: | ||||||
(Cost: Series Q - $1,167,196) | ||||||
(Cost: Series N - $ 614,944) | $ | 1,387,639 | $ | 726,599 | ||
Cash | 21,523 | 11,991 | ||||
Dividends and interest receivable | 980 | 500 | ||||
Total assets | 1,410,142 | 739,090 | ||||
Liabilities | ||||||
Payable to The Paul Revere Variable Annuity Insurance Company | 13,003 | 3,386 | ||||
Total net assets | $ | 1,397,139 | $ | 735,704 | ||
Contract owner’s equity: | ||||||
Deferred contracts | $ | 511,965 | $ | 203,714 | ||
Currently payable contracts | 885,174 | 531,990 | ||||
Total contract owner’s equity | $ | 1,397,139 | $ | 735,704 | ||
Accumulation units outstanding | 118,466 | 60,359 | ||||
Net asset value per accumulation unit | $ | 11.794 | $ | 12.189 | ||
2
The Paul Revere Variable Annuity Contract Accumulation Fund
Statement of Operations
Year Ended December 31, 2009
| Series Q (Qualified) | ||||
Investment income | ||||
Income: | ||||
Dividends | $ | 20,406 | ||
Miscellaneous income | 10,494 | |||
Total income | 30,900 | |||
Expenses: | ||||
Mortality and expense risk fees | 13,331 | |||
Investment management and advisory service fees | 10,966 | |||
Total expenses | 24,297 | |||
Net investment income | 6,603 | |||
Realized and unrealized gain on investments | ||||
Net realized loss on investments sold | (246,378 | ) | ||
Net increase in unrealized appreciation of investments | 669,372 | |||
Net realized and unrealized gain on investments | 422,994 | |||
Increase in net assets from operations | $ | 429,597 | ||
| Series N (Non-Qualified) | ||||
Investment loss | ||||
Income: | ||||
Dividends | $ | 10,338 | ||
Miscellaneous income | 2,215 | |||
Total income | 12,553 | |||
Expenses: | ||||
Mortality and expense risk fees | 6,772 | |||
Investment management and advisory service fees | 5,966 | |||
Total expenses | 12,738 | |||
Net investment loss | (185 | ) | ||
Realized and unrealized gain on investments | ||||
Net realized loss on investments sold | (152,333 | ) | ||
Net increase in unrealized appreciation of investments | 352,800 | |||
Net realized and unrealized gain on investments | 200,467 | |||
Increase in net assets from operations | $ | 200,282 | ||
3
The Paul Revere Variable Annuity Contract Accumulation Fund
Statements of Changes in Net Assets
Years Ended December 31, 2009 and 2008
| 2009 | 2008 | |||||||
| Series Q (Qualified) | Series Q (Qualified) | |||||||
Decrease in net assets | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 6,603 | $ | (10,228 | ) | |||
Net realized loss on investments | (246,378 | ) | (296,961 | ) | ||||
Net increase (decrease) in unrealized appreciation of investments | 669,372 | (630,964 | ) | |||||
Increase (Decrease) in net assets from operations | 429,597 | (938,153 | ) | |||||
Contributions received | 24,604 | — | ||||||
Payments to contract owners: | ||||||||
Annuity payments to contract owners | 131,653 | 191,876 | ||||||
Terminations and withdrawals to contract owners | 417,567 | 213,841 | ||||||
Total payments to contract owners | 549,220 | 405,717 | ||||||
Net payments to contract owners | (524,616 | ) | (405,717 | ) | ||||
Total decrease in net assets | (95,019 | ) | (1,343,870 | ) | ||||
Net assets | ||||||||
Beginning of period | 1,492,158 | 2,836,028 | ||||||
End of period | $ | 1,397,139 | $ | 1,492,158 | ||||
| 2009 | 2008 | |||||||
| Series N (Non-Qualified) | Series N (Non-Qualified) | |||||||
Decrease in net assets | ||||||||
Operations: | ||||||||
Net investment loss | $ | (185 | ) | $ | (8,293 | ) | ||
Net realized loss on investments | (152,333 | ) | (138,524 | ) | ||||
Net increase (decrease) in unrealized appreciation of investments | 352,800 | (351,613 | ) | |||||
Increase (decrease) in net assets from operations | 200,282 | (498,430 | ) | |||||
Contributions received | 24,052 | — | ||||||
Payments to contract owners: | ||||||||
Annuity payments to contract owners | 32,179 | 41,261 | ||||||
Terminations and withdrawals to contract owners | 285,023 | 106,162 | ||||||
Total payments to contract owners | 317,202 | 147,423 | ||||||
Net payments to contract owners | (293,150 | ) | (147,423 | ) | ||||
Total decrease in net assets | (92,868 | ) | (645,853 | ) | ||||
Net assets | ||||||||
Beginning of period | 828,572 | 1,474,425 | ||||||
End of period | $ | 735,704 | $ | 828,572 | ||||
4
The Paul Revere Variable Annuity Contract Accumulation Fund
Schedule of Investments
December 31, 2009
| Series Q (Qualified) | Series N (Non-Qualified) | |||||||||||||||||
| Securities of Unaffiliated Companies | Number of Shares | Cost | Fair Value | % of Net Assets | Number of Shares | Cost | Fair Value | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||||
Aerospace & Military Technology | ||||||||||||||||||
United Technologies Corporation | 373 | 19,236 | 25,890 | 1.85 | % | 203 | 10,443 | 14,090 | 1.92 | % | ||||||||
Agriculture | ||||||||||||||||||
Monsanto Company | 92 | 6,935 | 7,521 | 0.54 | % | 47 | 3,543 | 3,842 | 0.52 | % | ||||||||
Beverages | ||||||||||||||||||
Companhia De Bebidas ADR | 87 | 6,948 | 8,795 | 44 | 3,517 | 4,448 | ||||||||||||
Diageo Capital PLC ADR | 229 | 18,884 | 15,895 | 114 | 8,945 | 7,913 | ||||||||||||
PepsiCo, Inc. | 689 | 39,900 | 41,891 | 364 | 21,354 | 22,131 | ||||||||||||
| 65,732 | 66,581 | 4.77 | % | 33,816 | 34,492 | 4.69 | % | |||||||||||
Broadcasting & Media | ||||||||||||||||||
Grupo Televisa SA ADR | 226 | 5,144 | 4,692 | 123 | 2,764 | 2,554 | ||||||||||||
The DIRECTV Group, Inc. * | 272 | 6,987 | 9,071 | 179 | 4,498 | 5,970 | ||||||||||||
| 12,131 | 13,763 | 0.99 | % | 7,262 | 8,524 | 1.16 | % | |||||||||||
Commercial Services | ||||||||||||||||||
Dun & Bradstreet Corporation | 401 | 31,156 | 33,832 | 220 | 16,983 | 18,561 | ||||||||||||
Omnicom Group, Inc. | 228 | 5,972 | 8,926 | 107 | 2,800 | 4,189 | ||||||||||||
Verisk Analytics, Inc. * | 362 | 9,710 | 10,961 | 193 | 5,145 | 5,844 | ||||||||||||
| 46,838 | 53,719 | 3.84 | % | 24,928 | 28,594 | 3.89 | % | |||||||||||
Computer – Systems & Services | ||||||||||||||||||
Accenture, Ltd. | 1,294 | 38,418 | 53,701 | 688 | 20,459 | 28,552 | ||||||||||||
Apple, Inc. * | 119 | 11,325 | 25,092 | 62 | 6,594 | 13,073 | ||||||||||||
Automatic Data Processing, Inc. | 258 | 10,507 | 11,048 | 127 | 4,985 | 5,438 | ||||||||||||
eBay, Inc. * | 254 | 7,560 | 5,979 | 152 | 4,220 | 3,578 | ||||||||||||
EMC Corporation * | 235 | 3,081 | 4,106 | 115 | 1,306 | 2,009 | ||||||||||||
Fidelity National Information | 414 | 7,650 | 9,704 | 223 | 4,099 | 5,227 | ||||||||||||
Google, Inc., Class A * | 91 | 37,316 | 56,418 | 40 | 18,931 | 24,799 | ||||||||||||
Hewlett Packard Company | 510 | 19,880 | 26,270 | 283 | 10,937 | 14,577 | ||||||||||||
International Business Machines Corporation | 178 | 19,075 | 23,300 | 80 | 8,779 | 10,472 | ||||||||||||
Oracle Corporation * | 2,650 | 50,438 | 65,031 | 1,382 | 26,529 | 33,914 | ||||||||||||
| 205,250 | 280,649 | 20.09 | % | 106,839 | 141,639 | 19.25 | % | |||||||||||
Conglomerate | ||||||||||||||||||
Danaher Corporation | 488 | 31,406 | 36,698 | 279 | 18,377 | 20,981 | ||||||||||||
3 M Company | 69 | 3,241 | 5,704 | 39 | 1,832 | 3,224 | ||||||||||||
| 34,647 | 42,402 | 3.03 | % | 20,209 | 24,205 | 3.29 | % | |||||||||||
Consumer Goods & Services | ||||||||||||||||||
Church & Dwight Company, Inc. | 392 | 23,426 | 23,696 | 206 | 12,310 | 12,453 | ||||||||||||
Colgate-Palmolive Company | 359 | 23,388 | 29,492 | 202 | 13,181 | 16,594 | ||||||||||||
Mead Johnson Nutrition Company | 337 | 12,320 | 14,727 | 178 | 6,511 | 7,779 | ||||||||||||
NIKE, Inc. | 521 | 27,441 | 34,422 | 280 | 14,756 | 18,500 | ||||||||||||
Proctor & Gamble Company | 757 | 40,870 | 45,897 | 391 | 21,165 | 23,706 | ||||||||||||
| 127,445 | 148,234 | 10.61 | % | 67,923 | 79,032 | 10.74 | % | |||||||||||
Electronics | ||||||||||||||||||
Thermo Fisher Scientific, Inc. * | 618 | 26,674 | 29,472 | 367 | 15,326 | 17,502 | ||||||||||||
Waters Corporation * | 393 | 15,461 | 24,350 | 229 | 8,996 | 14,189 | ||||||||||||
| 42,135 | 53,822 | 3.85 | % | 24,322 | 31,691 | 4.31 | % | |||||||||||
5
The Paul Revere Variable Annuity Contract Accumulation Fund
Schedule of Investments (continued)
| Series Q (Qualified) | Series N (Non-Qualified) | |||||||||||||||||
| Securities of Unaffiliated Companies | Number of Shares | Cost | Fair Value | % of Net Assets | Number of Shares | Cost | Fair Value | % of Net Assets | ||||||||||
Common Stocks | ||||||||||||||||||
Energy Services | ||||||||||||||||||
BHP Billiton, Ltd. ADR | 110 | 8,832 | 8,424 | 51 | 3,825 | 3,906 | ||||||||||||
Chevron Corporation | 151 | 11,358 | 11,626 | 73 | 5,519 | 5,620 | ||||||||||||
Exxon Mobil Corporation | 87 | 7,351 | 5,933 | 40 | 3,506 | 2,728 | ||||||||||||
Halliburton Company | 511 | 11,596 | 15,376 | 246 | 5,679 | 7,402 | ||||||||||||
Hess Corporation | 44 | 3,096 | 2,662 | 23 | 1,911 | 1,392 | ||||||||||||
Praxair, Inc. | 133 | 9,839 | 10,681 | 69 | 5,398 | 5,541 | ||||||||||||
| 52,072 | 54,702 | 3.92 | % | 25,838 | 26,589 | 3.61 | % | |||||||||||
Financial Institutions | ||||||||||||||||||
Charles Schwab Corporation | 1,385 | 22,419 | 26,066 | 710 | 11,493 | 13,362 | ||||||||||||
CME Group, Inc. | 71 | 23,581 | 23,852 | 36 | 12,729 | 12,094 | ||||||||||||
Mastercard, Inc., Class A | 234 | 33,469 | 59,899 | 113 | 16,229 | 28,926 | ||||||||||||
State Street Corporation | 564 | 28,151 | 24,557 | 312 | 15,664 | 13,585 | ||||||||||||
The Bank of New York Mellon Corporation | 566 | 21,480 | 15,831 | 338 | 12,987 | 9,454 | ||||||||||||
Visa, Inc., Class A * | 113 | 5,115 | 9,883 | 61 | 2,870 | 5,335 | ||||||||||||
Western Union Company | 1,120 | 21,756 | 21,112 | 577 | 10,947 | 10,877 | ||||||||||||
| 155,971 | 181,200 | 12.97 | % | 82,919 | 93,633 | 12.72 | % | |||||||||||
Foods | ||||||||||||||||||
Nestle SA ADR | 367 | 15,363 | 17,822 | 1.28 | % | 220 | 8,981 | 10,683 | 1.45 | % | ||||||||
Health Services | ||||||||||||||||||
Laboratory Corp. of America Holdings * | 120 | 8,149 | 8,981 | 60 | 4,074 | 4,490 | ||||||||||||
Medco Health Solutions, Inc. * | 173 | 8,897 | 11,056 | 84 | 4,360 | 5,368 | ||||||||||||
| 17,046 | 20,037 | 1.43 | % | 8,434 | 9,858 | 1.34 | % | |||||||||||
Leisure & Tourism | ||||||||||||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 299 | 6,196 | 10,934 | 0.78 | % | 162 | 3,368 | 5,924 | 0.81 | % | ||||||||
Manufacturing | ||||||||||||||||||
Precision Castparts Corporation | 50 | 4,121 | 5,518 | 24 | 1,978 | 2,648 | ||||||||||||
Rockwell Automation, Inc. | 115 | 2,570 | 5,403 | 61 | 1,379 | 2,866 | ||||||||||||
| 6,691 | 10,921 | 0.78 | % | 3,357 | 5,514 | 0.75 | % | |||||||||||
Medical & Health Products | ||||||||||||||||||
Abbott Laboratories | 422 | 18,716 | 22,784 | 247 | 10,983 | 13,336 | ||||||||||||
Allergan, Inc. | 205 | 7,691 | 12,917 | 111 | 4,273 | 6,994 | ||||||||||||
Becton, Dickinson and Company | 170 | 11,510 | 13,406 | 85 | 5,755 | 6,703 | ||||||||||||
DENTSPLY International, Inc. | 812 | 21,467 | 28,558 | 404 | 10,644 | 14,209 | ||||||||||||
Genzyme Corporation * | 371 | 23,111 | 18,183 | 223 | 14,540 | 10,929 | ||||||||||||
Johnson & Johnson | 408 | 25,332 | 26,279 | 209 | 13,023 | 13,462 | ||||||||||||
Medtronic, Inc. | 819 | 24,753 | 36,020 | 408 | 12,311 | 17,944 | ||||||||||||
Patterson Cos., Inc. * | 644 | 14,488 | 18,019 | 350 | 7,838 | 9,793 | ||||||||||||
Roche Holdings, Ltd. ADR | 148 | 6,142 | 6,292 | 63 | 2,805 | 2,678 | ||||||||||||
St. Jude Medical, Inc. * | 532 | 19,482 | 19,567 | 283 | 10,387 | 10,409 | ||||||||||||
VCA Antech, Inc. * | 305 | 8,095 | 7,601 | 154 | 3,986 | 3,838 | ||||||||||||
| 180,787 | 209,626 | 15.00 | % | 96,545 | 110,295 | 14.99 | % | |||||||||||
Semiconductors | ||||||||||||||||||
Intel Corporation | 290 | 6,989 | 5,916 | 168 | 3,720 | 3,427 | ||||||||||||
National Semiconductor | 1,420 | 17,124 | 21,811 | 732 | 8,758 | 11,244 | ||||||||||||
Taiwan Semiconductor | 1,909 | 18,953 | 21,839 | 974 | 9,381 | 11,143 | ||||||||||||
| 43,066 | 49,566 | 3.55 | % | 21,859 | 25,814 | 3.51 | % | |||||||||||
6
The Paul Revere Variable Annuity Contract Accumulation Fund
Schedule of Investments (continued)
| Series Q (Qualified) | Series N (Non-Qualified) | |||||||||||||||||||||
| Securities of Unaffiliated Companies | Number of Shares | Cost | Fair Value | % of Net Assets | Number of Shares | Cost | Fair Value | % of Net Assets | ||||||||||||||
Common Stocks | ||||||||||||||||||||||
Stores | ||||||||||||||||||||||
Coach, Inc. * | 500 | 21,074 | 18,265 | 280 | 11,204 | 10,228 | ||||||||||||||||
CVS Caremark Corporation | 646 | 20,415 | 20,808 | 333 | 10,184 | 10,726 | ||||||||||||||||
Staples, Inc. | 660 | 14,091 | 16,229 | 321 | 6,663 | 7,893 | ||||||||||||||||
Target Corporation | 277 | 9,401 | 13,399 | 129 | 4,452 | 6,240 | ||||||||||||||||
W.W. Grainger, Inc. | 92 | 7,217 | 8,908 | 45 | 3,606 | 4,357 | ||||||||||||||||
| 72,198 | 77,609 | 5.55 | % | 36,109 | 39,444 | 5.36 | % | |||||||||||||||
Telecommunications | ||||||||||||||||||||||
Amdocs, Ltd. * | 196 | 5,422 | 5,592 | 96 | 2,177 | 2,739 | ||||||||||||||||
Cisco Systems, Inc. * | 2,383 | 52,035 | 57,049 | 1,253 | 26,072 | 29,997 | ||||||||||||||||
| 57,457 | 62,641 | 4.49 | % | 28,249 | 32,736 | 4.45 | % | |||||||||||||||
Total common stocks | 1,167,196 | 1,387,639 | 99.32 | % | 614,944 | 726,599 | 98.76 | % | ||||||||||||||
Total investments | $ | 1,167,196 | $ | 1,387,639 | 99.32 | % | $ | 614,944 | $ | 726,599 | 98.76 | % | ||||||||||
Other assets less liabilities | 9,500 | 0.68 | % | 9,105 | 1.24 | % | ||||||||||||||||
Total net assets | $ | 1,397,139 | 100.00 | % | $ | 735,704 | 100.00 | % | ||||||||||||||
| * | Non-income producing security |
ADR – American Depository Receipt
7
The Paul Revere Variable Annuity Contract Accumulation Fund
Financial Highlights – Selected Per-Unit Data and Ratios
| Year Ended December 31 | ||||||||||||||||||||
| PER UNIT DATA (a) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Series Q (Qualified) | ||||||||||||||||||||
Investment income | $ | 0.248 | $ | 0.188 | $ | 0.090 | $ | 0.136 | $ | 0.111 | ||||||||||
Expenses | 0.195 | 0.242 | 0.081 | 0.207 | 0.209 | |||||||||||||||
Net investment income (loss) | 0.053 | (0.054 | ) | 0.009 | (0.071 | ) | (0.098 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 3.391 | (4.853 | ) | 0.237 | 0.700 | 0.269 | ||||||||||||||
Net increase (decrease) in net asset value | 3.444 | (4.907 | ) | 0.246 | 0.629 | 0.171 | ||||||||||||||
Accumulation unit net asset value: | ||||||||||||||||||||
Beginning of year | 8.350 | 13.257 | 13.011 | 12.382 | 12.211 | |||||||||||||||
End of year | $ | 11.794 | $ | 8.350 | $ | 13.257 | $ | 13.011 | $ | 12.382 | ||||||||||
Total return | 41.25 | % | (37.01 | %) | 1.89 | % | 5.08 | % | 1.40 | % | ||||||||||
Series N (Non-Qualified) | ||||||||||||||||||||
Investment income | $ | 0.226 | $ | 0.172 | $ | 0.211 | $ | 0.119 | $ | 0.109 | ||||||||||
Expenses | 0.229 | 0.256 | 0.264 | 0.244 | 0.253 | |||||||||||||||
Net investment loss | (0.003 | ) | (0.084 | ) | (0.053 | ) | (0.125 | ) | (0.144 | ) | ||||||||||
Net realized and unrealized gains (losses) on investments | 3.610 | (4.928 | ) | 1.115 | 0.664 | 0.358 | ||||||||||||||
Net increase (decrease) in net asset value | 3.607 | (5.012 | ) | 1.062 | 0.539 | 0.214 | ||||||||||||||
Accumulation unit net asset value: | ||||||||||||||||||||
Beginning of year | 8.582 | 13.594 | 12.532 | 11.993 | 11.779 | |||||||||||||||
End of year | $ | 12.189 | $ | 8.582 | $ | 13.594 | $ | 12.532 | $ | 11.993 | ||||||||||
Total return | 42.03 | % | (36.87 | %) | 8.47 | % | 4.49 | % | 1.82 | % | ||||||||||
| (a) | For a unit outstanding throughout the period. Additionally, the per unit amounts represent the proportionate distribution of actual investment results as related to the change in unit net asset values for the year and do not include any sales loads. |
| Year Ended December 31 | |||||||||||||||
| RATIOS | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||
Series Q (Qualified) | |||||||||||||||
Operating expenses to average accumulation fund balance | 1.84 | % | 2.07 | % | 1.77 | % | 1.64 | % | 1.65 | % | |||||
Net investment income (loss) to average accumulation fund balance | 0.50 | % | (0.46 | %) | 0.21 | % | (0.56 | %) | (0.77 | %) | |||||
Portfolio turnover rate | 46 | % | 46 | % | 60 | % | 81 | % | 74 | % | |||||
Accumulation units outstanding at the end of the year (in thousands) | 118 | 179 | 214 | 710 | 768 | ||||||||||
| Year Ended December 31 | |||||||||||||||
| RATIOS | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||
Series N (Non-Qualified) | |||||||||||||||
Operating expenses to average accumulation fund balance | 1.89 | % | 2.14 | % | 2.01 | % | 2.01 | % | 2.01 | % | |||||
Net investment loss to average accumulation fund balance | (0.03 | %) | (0.70 | %) | (0.41 | %) | (1.03 | %) | (1.14 | %) | |||||
Portfolio turnover rate | 46 | % | 52 | % | 66 | % | 83 | % | 74 | % | |||||
Accumulation units outstanding at the end of the year (in thousands) | 60 | 97 | 108 | 123 | 128 | ||||||||||
8
The Paul Revere Variable Annuity Contract Accumulation Fund
Notes to Financial Statements
December 31, 2009
| 1. | Organization |
The Paul Revere Variable Annuity Contract Accumulation Fund (the Fund) is a separate account of The Paul Revere Variable Annuity Insurance Company (Paul Revere Variable), and is registered under the Investment Company Act of 1940 as an open-end diversified investment company. Paul Revere Variable is a wholly owned subsidiary of The Paul Revere Life Insurance Company (Paul Revere Life) which in turn is wholly owned by Unum Group, formerly UnumProvident Corporation. The Fund is the investment vehicle for Paul Revere Variable’s tax-deferred group annuity contracts. The Fund consists of two series. Series Q is applicable to contracts which were afforded special tax treatment under the Internal Revenue Code and are commonly referred to as “qualified contracts.” Series N is applicable to all other contracts and are commonly referred to as “non-qualified contracts.”
| 2. | Accounting Policies |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in those statements and accompanying notes. Actual results may differ from such estimates.
Common stocks are stated at fair values which are based on the last sales prices at December 31, 2009, as reported on national security exchanges. Unrealized investment gains and losses are included in contract owners’ equity. Realized gains and losses on investments sold are determined on the basis of specific identification of investments. Security transactions are accounted for on the day after the securities are purchased or sold. Dividend income is recorded on the ex-dividend date.
The Fund does not distribute net investment income and net realized capital gains through dividends to contract owners. The allocation of net investment income and net realized capital gains occurs automatically in the daily determination of unit net asset values. They are, therefore, included in the value of the contracts in force and in payments to contract owners.
Contract owners’ equity is comprised of two components. Deferred contracts terminable by owner represent amounts attributable to contracts which have not yet annuitized. Currently payable contracts include amounts equivalent to the annuity reserves relating to contracts with current annuities. Annuity reserves are computed for currently payable contracts according to the 1900 Progressive Annuity Mortality Table. The assumed interest rate is either 3.5% or 5% according to the option elected by the annuitant at the time of conversion. Paul Revere Variable bears all the mortality risk associated with these contracts.
9
The Paul Revere Variable Annuity Contract Accumulation Fund
Notes to Financial Statements (continued)
| 2. | Accounting Policies (continued) |
In connection with the preparation of the consolidated financial statements, events that occurred subsequent to December 31, 2009, were evaluated for recognition or disclosure in the financial statements and notes to the financial statements. This subsequent event review was performed through the time at which the financial statements were issued on March 1, 2010.
| 3. | Investment Company Deregistration |
In 2009, Paul Revere Variable began taking steps to deregister the Fund as an investment company under the Investment Company Act of 1940. The separate accounts are required to have less than 100 contract owners in order to qualify for deregistration. This requirement had been met as of December 31, 2009. To accomplish this requirement, contract owners were offered a one-time, 10% bonus if they elected to withdraw or transfer their balances from the Fund. For those contract owners currently receiving variable annuity payments, the 10% bonus offer required them to transfer their account to a fixed annuity product offered by Paul Revere Variable. The amount of bonuses paid in 2009 to those contract owners accepting the offer was $48,656. The bonus payments were paid to the contract owners by Unum Group. In 2010, the deregistration process was finalized with the Securities and Exchange Commission.
| 4. | Investment Advisor |
Paul Revere Variable acts as investment advisor and underwriter to the Fund and provides mortality and expense guarantees to holders of variable annuity contracts. For these services, Paul Revere Variable receives mortality and expense risk fees and investment management and advisory service fees as shown on the statements of operations which, on an annual basis, will not exceed 2% of the average daily net asset value of the Fund. The current rate for such fees is 1.5% of the average daily net asset value of the Fund.
Certain administrative services of the Fund are provided by The Variable Annuity Life Insurance Company (VALIC) under a contract dated May 15, 1998. These services include processing of unit transactions and daily unit value calculations subsequent to December 1, 1998 as well as accounting and other services.
10
The Paul Revere Variable Annuity Contract Accumulation Fund
Notes to Financial Statements (continued)
| 5. | Investment Sub-Advisor |
Under an investment sub-advisory agreement with MFS Institutional Advisors, Inc. (MFSI), MFSI provides investment management services to Paul Revere Variable for a fee which, on an annual basis, will equal 0.35% of the average daily net assets of each series of the Fund. This fee is borne by Paul Revere Variable only and does not represent an additional charge to the Fund.
| 6. | Fair Value Measurements |
Accounting Standards Codification 820 (ASC 820), Fair Value Measurements and Disclosures requires financial instruments measured at fair value to be categorized into a three-level classification. The lowest level input that is significant to the fair value measurement of a financial instrument is used to categorize the instrument and reflects the judgment of management. The valuation criteria for each level is summarized as follows:
| • | Level 1 – Inputs are unadjusted and represent quoted prices in active markets for identical assets at the measurement date. |
| • | Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset through correlation with market data at the measurement date. |
| • | Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset at the measurement date. Financial assets presented at fair value and categorized as Level 3 are generally those that are valued using unobservable inputs. |
As of December 31, 2009, all investments held by the Fund were valued using Level 1 inputs as defined by ASC 820.
| 7. | Federal Income Taxes |
The Fund’s operations are included with those of Paul Revere Variable, which is taxed as a life insurance company under the Internal Revenue Code and is included in a consolidated federal tax return filed by Paul Revere Life. In the opinion of Paul Revere Variable management, current law provides that investment income and capital gains from assets maintained in the Fund for the exclusive benefit of the contract owners are generally not subject to federal income tax. However, to the extent that Paul Revere Variable incurs federal income taxes based on the income from the Fund’s assets, the Fund will be charged. No charges for federal income taxes have been made since the inception of the Fund.
11
The Paul Revere Variable Annuity Contract Accumulation Fund
Notes to Financial Statements (continued)
| 8. | Security Transactions |
The aggregate cost of securities purchased and proceeds of securities sold, other than securities with maturities of one year or less, were as follows:
| Series Q (Qualified) | Series N (Non-Qualified) | |||||||||||
| Purchases | Sales | Purchases | Sales | |||||||||
Year ended December 31, 2009 | $ | 614,857 | $ | 1,120,580 | $ | 313,495 | $ | 605,363 | ||||
At December 31, 2009, net unrealized appreciation of investments in Series Q, amounting to $220,443, consisted of unrealized gains of $246,916 and unrealized losses of $26,473; net unrealized appreciation of investments in Series N, amounting to $111,655, consisted of unrealized gains of $126,308 and unrealized losses of $14,653.
12
The Paul Revere Variable Annuity Contract Accumulation Fund
Notes to Financial Statements (continued)
| 9. | Accumulation Units |
The change in the number of accumulation units outstanding were as follows:
| 2009 | 2008 | |||||
| Series Q (Qualified) | ||||||
Units outstanding at beginning of year | 178,692 | 213,924 | ||||
Contributions received | 2,988 | — | ||||
Units withdrawn from contracts: | ||||||
Annuity payments | 13,643 | 17,087 | ||||
Termination and withdrawals | 49,571 | 18,145 | ||||
Net units withdrawn | 63,214 | 35,232 | ||||
Contract units withdrawn in excess of units credited | (60,226 | ) | (35,232 | ) | ||
Units outstanding at end of year | 118,466 | 178,692 | ||||
| 2009 | 2008 | |||||
| Series N (Non-Qualified) | ||||||
Units outstanding at beginning of year | 96,546 | 108,464 | ||||
Contributions received | 3,057 | — | ||||
Units withdrawn from contracts: | ||||||
Annuity payments | 3,220 | 3,595 | ||||
Termination and withdrawals | 36,024 | 8,323 | ||||
Net units withdrawn | 39,244 | 11,918 | ||||
Contract units withdrawn in excess of units credited | (36,187 | ) | (11,918 | ) | ||
Units outstanding at end of year | 60,359 | 96,546 | ||||
13
| Item 2. | Code of Ethics. |
(a) The Registrant has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the Registrant’s Code of Ethics is filed herewith as Exhibit 12(a)(1).
(b) During the period covered by this report, no amendments were made to the provisions of the Code of Ethics described in 2(a) above.
(c) During the period covered by this report, no implicit or explicit waivers of the provisions of the Code of Ethics described in 2(a) above were granted.
| Item 3. | Audit Committee Financial Expert. |
The Fund had assets under $3 million as of December 31, 2009. It has no audit committee and no audit committee financial expert. The Board of Managers of the Fund consists of independent directors that control 2/3 of the Board. The Board receives quarterly reports on the transactions in the Fund. Because of the nature of the Fund’s business there are no sensitive accounting estimates used in preparation of the financial statements of the Fund. Therefore, the Fund does not believe an audit committee financial expert is necessary or appropriate.
| Item 4. | Principal Accountant Fees and Services. |
All audit and other fees paid to the auditors for work related to the Fund are paid by Unum Group and are not charged to or paid from the Fund.
Audit Fees – Ernst & Young LLP billed Unum Group $19,100.00 for the audit of the financial statements of the Fund for 2009, and $19,100.00 for the audit of the financial statements of the Fund for 2008.
Audit-Related Fees – The aggregate fees for audit related services rendered by Ernst & Young LLP to the Fund, the investment adviser or any entity controlling, controlled by or under common control with the investment adviser in 2009 and 2008 for such services were $0.00 and $0.00.
Tax Fees – The aggregate fees related to tax compliance, tax advice and tax planning services to the Fund for fiscal years ended December 31, 2009, and December 31, 2008, were $0.00 and $0.00.
All Other Fees – The aggregate fees rendered by Ernst & Young LLP to the Fund, the investment adviser or any entity controlling, controlled by or under common control with the investment adviser, or Unum Group for such services to the Fund in 2009 and 2008 were $0.00 and $0.00.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable to Registrant.
| Item 6. | Schedule of Investments. |
The Fund’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this Form N-CSR.
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to Registrant.
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to Registrant.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to Registrant.
| Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Managers.
| Item 11. | Controls and Procedures. |
(a) Within the 90-day period prior to the filing of this report, the Registrant’s management, including the person serving as both the Registrant’s Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures as defined in Investment Company Act Rule 30a-3(c). Based on that evaluation, the Chief Executive Officer/Chief Financial Officer concluded that the Registrant’s disclosure controls and procedures were effective as of the date of that evaluation.
(b) No change in the Registrant’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting, occurred during the Registrant’s most recent fiscal year.
| Item 12. | Exhibits. |
The following exhibits are attached to this Form N-CSR:
(1) Code of Ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, attached hereto as Exhibit 12(a)(1).
(2) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 C.F.R. 270.30a-2(a)), attached hereto as Exhibit 12(a)(2).
(3) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(b) under the Act (17 C.F.R. 270.30a-2(b)), attached hereto as Exhibit 12(a)(3).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Paul Revere Variable Annuity | ||||||||
Contract Accumulation Fund | ||||||||
By (Signature and Title): | /s/ David G. Fussell | |||||||
| David G. Fussell, Chairman, Board of Managers | ||||||||
Signing in the capacity of Chief Executive Officer | ||||||||
and Chief Financial Officer | ||||||||
Date: March 1, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the Registrant and in the capacities and on the dates indicated.
By (Signature and Title): | /s/ David G. Fussell | |||||||
David G. Fussell, Chairman, Board of Managers | ||||||||
Signing in the capacity of Chief Executive Officer | ||||||||
and Chief Financial Officer |
Date: March 1, 2010