1
EXHIBIT 99.2
GENZYME RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
TO ACCOMPANY 1998 FORM 5500
ANNUAL REPORT OF EMPLOYEE BENEFIT PLAN
UNDER ERISA OF 1974
AS OF DECEMBER 31, 1998 AND 1997
AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
2
GENZYME RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
PAGE(S)
Report of Independent Accountants 2
Financial Statements:
Statements of Net Assets Available for Plan Benefits
as of December 31, 1998 and 1997 3
Statement of Changes in Net Assets Available for Plan
Benefits, with Fund Information for the Year Ended
December 31, 1998 (with comparative totals for the
year ended December 31, 1997) 4
Notes to Financial Statements 6
Supplemental Schedules:
Line 27(a) - Schedule of Assets Held for Investment
Purposes, December 31, 1998 11
Line 27(d) - Schedule of Reportable Transactions for
the Year Ended December 31, 1998 12
Certain supplemental schedules required by the regulations of the ERISA of 1974
have been omitted for the reason that they are not applicable.
1
3
REPORT OF INDEPENDENT ACCOUNTANTS
Report of Independent Accountants
To the Retirement Savings Plan Committee of the
Genzyme Retirement Savings Plan:
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statements of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
plan benefits of the Genzyme Retirement Savings Plan at December 31, 1998 and
1997, and the changes in net assets available for plan benefits, with fund
information for the year ended December 31, 1998, in conformity with generally
accepted accounting principles. We previously audited and reported on the
statement of changes in net assets available for plan benefits, with fund
information for the year ended December 31, 1997, which condensed statement is
presented for comparative purposes. These financial statements are the
responsibility of the plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
index on page 1 are presented for purposes of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statement of changes in net assets available
for plan benefits is presented for purposes of additional analysis rather than
to present the changes in net assets available for plan benefits of each fund.
The supplemental schedules and fund information are the responsibility of the
Plan's Management. These supplemental schedules and fund information have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
The Plan has not presented the schedule of single reportable transactions.
Disclosure of this information is required by the Department of Labor's Rules
and Regulations for Reporting and Disclosure under the Employee Retirement
Income and Security Act of 1974.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
June 16, 1999
2
4
GENZYME RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31,
--------------------------
ASSETS 1998 1997
Investments at fair value (Notes A and B):
Fidelity Puritan Fund $17,004,534 $13,253,730
CIGNA Stock Market Index Fund 24,442,820 17,232,517
Putnam Voyager Fund 2,847,365 593,527
PBHG Growth Fund 9,586,163 8,371,729
Templeton Foreign Fund 838,880 453,648
Genzyme General Division Stock Fund 10,649,046 5,302,373
Genzyme Tissue Repair Division Stock Fund 190,038 318,308
Participant Loan Fund 1,608,827 1,655,501
----------- -----------
Total investments at fair value 67,167,673 47,181,333
Investments at contract value (Notes A and B):
CIGNA Guaranteed Income Fund 1,875,662 270,473
CIGNA Guaranteed Securities Separate Account 6,204,881 5,648,078
----------- -----------
Total investments at contract value 8,080,543 5,918,551
----------- -----------
Total investments 75,248,216 53,099,884
Cash and cash equivalents 4,118 1,115
Receivables:
Employee contribution 283,874 337,504
Employer contribution 41,307 47,422
Accrued interest 563 4,308
----------- -----------
Total receivables 325,744 389,234
----------- -----------
Total assets 75,578,078 53,490,233
----------- -----------
Net assets available for plan benefits (Note D) $75,578,078 $53,490,233
=========== ===========
The accompanying notes are an integral part of these financial statements.
3
5
GENZYME RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
for the year ended December 31, 1998
(with comparative totals for the year ended December 31, 1997)
Fund Information
----------------------------------------------------------------------------------------
CIGNA CIGNA CIGNA
Guaranteed Guaranteed Fidelity Stock Market Putnam PBHG
Securities Income Puritan Index Voyager Growth
Separate Fund Fund Fund Fund Fund Fund
------------- ------------ ------------ ------------ ------------ ------------
Additions:
Employee contributions $ 641,635 $ 243,249 $ 2,071,141 $ 2,721,677 $ 559,158 $ 1,930,472
Employer contributions 611,053 35,752 254,605 347,162 71,220 245,471
Rollovers 217,932 118,432 277,765 319,009 475,384 122,794
Additions from merged plans
(Note A) -- -- -- -- -- --
Investment income 325,821 70,162 -- -- 186,103 --
Net appreciation (depreciation)
in market value of investments -- -- 2,322,280 5,175,663 202,663 160,596
------------ ------------ ------------ ------------ ------------ ------------
Total additions 1,796,441 467,595 4,925,791 8,563,511 1,494,528 2,459,333
Deductions:
Benefit payments and withdrawals (554,589) (159,210) (906,393) (1,550,765) (92,896) (724,667)
Participant expenses (4,295) (296) (3,380) (3,905) (79) (675)
------------ ------------ ------------ ------------ ------------ ------------
Total deductions (558,884) (159,506) (909,773) (1,554,670) (92,975) (725,342)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 1,237,557 308,089 4,016,018 7,008,841 1,401,553 1,733,991
Interfund transfers (691,363) 1,304,546 (282,879) 183,414 864,899 (544,908)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 546,194 1,612,635 3,733,139 7,192,255 2,266,452 1,189,083
Net assets available for plan benefits
at beginning of year 5,679,908 276,167 13,343,121 17,346,912 606,858 8,457,666
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
at end of year $ 6,226,102 $ 1,888,802 $ 17,076,260 $ 24,539,167 $ 2,873,310 $ 9,646,749
============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements.
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6
GENZYME RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
for the year ended December 31, 1998
(with comparative totals for the year ended December 31, 1997)
Fund Information
---------------------------------------------------------------------------------------
Genzyme Genzyme
Templeton General Tissue Repair Participant
Foreign Division Division Loan TOTALS
Fund Stock Fund Stock Fund Fund 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
Additions:
Employee contributions $ 290,962 $ 670,860 $ 584 $ -- $ 9,129,738 $ 8,405,618
Employer contributions 41,846 1,169,209 213,518 -- 2,989,836 1,087,311
Rollovers 58,452 191,584 -- -- 1,781,352 887,766
Additions from merged plans
(Note A) -- -- -- -- -- 2,904,060
Investment income -- -- -- 129,702 711,788 1,260,262
Net appreciation (depreciation)
in market value of investments (33,447) 4,621,046 (331,835) -- 12,116,966 6,785,441
------------ ------------ ------------ ------------ ------------ ------------
Total additions 357,813 6,652,699 (117,733) 129,702 26,729,680 21,330,458
Deductions:
Benefit payments and withdrawals (25,846) (436,627) (20,699) (150,860) (4,622,552) (4,487,758)
Participant expenses (33) (3,630) (2,990) -- (19,283) (9,511)
------------ ------------ ------------ ------------ ------------ ------------
Total deductions (25,879) (440,257) (23,689) (150,860) (4,641,835) (4,497,269)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 331,934 6,212,442 (141,422) (21,158) 22,087,845 16,833,189
Interfund transfers 56,179 (871,115) 11,855 (30,628) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 388,113 5,341,327 (129,567) (51,786) 22,087,845 16,833,189
Net assets available for plan benefits
at beginning of year 462,447 5,334,133 323,596 1,659,425 53,490,233 36,657,044
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
at end of year $ 850,560 $ 10,675,460 $ 194,029 $ 1,607,639 $ 75,578,078 $ 53,490,233
============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements.
5
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GENZYME RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
A. PLAN DESCRIPTION:
-----------------
The following description of the Genzyme Retirement Savings Plan (the
"Plan"), formerly the Genzyme Corporation Retirement Savings Plan, provides
only general information. Participants should refer to the Summary Plan
Description for a more complete description of the Plan's provisions.
GENERAL
The Plan, a defined contribution plan pursuant to the authorization of
the Genzyme Corporation Board of Directors (the "Genzyme Board"), was
established effective January 1, 1988 to provide a long-range program of
systematic savings for eligible employees ("Participants"). Employees of
all Genzyme Corporation's ("Genzyme" or the "Company") wholly-owned
United States subsidiaries are eligible to participate in the Plan, with
the exception of employees of the former Deknatel Snowden Pencer, Inc.
("DSP"), an entity acquired by Genzyme during 1996, which has its own
retirement savings plan that is still active. Pursuant to Plan
amendments with effective dates of April 1, 1997 and July 1, 1997, the
Plan merged with the Genetrix, Inc. Salary Savings Plan and the
PharmaGenics, Inc. 401(k) Plan, respectively. As of December 31, 1998,
all consolidated subsidiaries of Genzyme were 100% owned by the
Company therefore making the Plan a plan for a controlled group of
corporations. Employees who are 21 years of age or older become eligible
to participate on their first day of employment. The Plan is subject to
the provisions of the Employee Retirement Income Security Act of 1974
("ERISA of 1974"). The Plan Administrator is the Retirement Savings Plan
Committee of the Genzyme Board (the "Committee").
INVESTMENT OPTIONS
CIGNA, the Plan trustee, has made the following investment options
available to Participants: the Genzyme General Division Stock Fund, the
Genzyme Tissue Repair Division Stock Fund, the Fidelity Puritan Fund,
the CIGNA Guaranteed Income Fund, the CIGNA Guaranteed Securities
Separate Account, the CIGNA Stock Market Index Fund, the Putnam Voyager
Fund, the PBHG Growth Fund and the Templeton Foreign Fund. The Fidelity
Puritan Fund changed from a mutual fund to a pooled separate account as a
result of the change in the Plan trustee in 1997. The following
investment options were made available during 1998:
The Fidelity Puritan Fund's investment objective emphasizes income and
stability through investing in both stocks and bonds.
The CIGNA Stock Market Index Fund invests primarily in large blue chip
companies comprising the Standard & Poor's 500 index. The CIGNA Stock
Market Index Fund's investment principle is to provide long-term growth
of capital and income. The CIGNA Stock Market Index Fund was made
available to Participants as an investment option upon transfer of the
assets from the Fidelity Magellan Fund.
The Putnam Voyager Fund's investment objective is to provide capital
appreciation through investing in stocks of companies with growth
potential.
The PBHG Growth Fund's investment objective is to provide capital
appreciation through investing in small capitalization companies.
6
8
GENZYME RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
A. PLAN DESCRIPTION (CONTINUED):
-----------------------------
The Templeton Foreign Fund offers Participants an investment instrument
with the objective of providing long-term capital growth through a
combination of investing in stocks and debt obligations of companies and
governments outside the United States.
The Genzyme General Division Stock Fund (the "Genzyme General Stock
Fund") is currently invested solely in shares of Genzyme General Division
Common Stock ("GGD Stock"). Amounts contributed to the Genzyme General
Stock Fund may be invested in other short-term investments pending the
purchase of GGD Stock.
The Genzyme Tissue Repair Division Stock Fund (the "GTR Stock Fund") is
currently invested solely in shares of Genzyme Tissue Repair Division
Common Stock ("GTR Stock"). This fund is available as an investment
option of the company match only. Amounts contributed to the GTR Stock
Fund may be invested in other short-term investments pending the purchase
of GTR Stock.
The CIGNA Guaranteed Income Fund offers Participant's a fixed income fund
to provide yield returns relative to comparable guaranteed fixed income
investment funds. CIGNA maintains the contributions in a pooled account.
The contract is included in the financial statements at contract value,
which represents contributions made under the contract, plus credited
interest, less withdrawals and administrative expenses because it is
fully benefit responsive. The average yield and crediting interest rate
is based on an agreed-upon formula with the issuer but cannot be less
than zero. The average yield and crediting interest rates were
approximately 6.25% during 1998.
The CIGNA Guaranteed Securities Separate Account offers participants a
fixed income fund composed primarily of publicly traded investment-grade,
intermediate-term securities. Principal and interest are guaranteed by
CIGNA's Connecticut General Life Insurance Company. CIGNA maintains the
contributions in a pooled account. The contract is included in the
financial statements at contract value, which represents contributions
made under the contract, plus credited interest, less withdrawals and
administrative expenses because it is fully benefit responsive. The
average yield and crediting interest rates were approximately 5.05%
during 1998. The crediting interest rate is based on an agreed-upon
formula with the issuer but cannot be less than zero.
The Plan is invested in The New England Guaranteed Investment Contract
which provides Participants with a guaranteed return on their assets. As
of December 31, 1998, The New England Guaranteed Investment Contract was
included in the CIGNA Guaranteed Securities Separate Account and had a
contract value of $174,374. The average yield and crediting interest
rates were approximately 5.55% during 1998.
The CIGNA Guaranteed Securities Separate Account, Fidelity Puritan Fund,
CIGNA Stock Market Index Fund, PBHG Growth Fund, and Genzyme General
Division Stock Fund are each greater than 5% of the Plan's net assets.
7
9
GENZYME RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
A. PLAN DESCRIPTION (CONTINUED):
-----------------------------
EMPLOYEE CONTRIBUTIONS
The Plan is a defined contribution plan. Eligible employees may elect,
through salary reduction agreements, to have up to 18% or a maximum or
$10,000 of their compensation contributed on a pre-tax basis to the Plan
each year on their behalf. A Participant's salary reduction contribution
for a plan year may be further limited by the administration rules of the
Internal Revenue Code of 1986, as amended (the "Code") if the Participant
is considered to be a highly-compensated employee within the meaning of
the Code.
EMPLOYER CONTRIBUTIONS
Genzyme makes contributions to the Plan on behalf of a Participant
bi-weekly in an amount equal to at least 25% of the Participant's
contribution through salary reductions; however, employer matching
contributions will not be made for contributions that exceed, in the
aggregate, 5% of the Participant's annual compensation. Genzyme's
contributions amounted to $1,347,058 and $1,087,311 for the years ended
December 31, 1998 and 1997, respectively.
Pursuant to a Plan amendment, effective January 1, 1997, Genzyme makes
contributions to the Plan under a profit sharing program and a stock
ownership program. For the profit sharing plan, Genzyme will contribute
up to 0.75% of all employees' eligible compensation in either cash or
stock. For contributions made into the stock ownership plan, Genzyme will
contribute Genzyme General Division Common Stock equivalent to 1% of all
employees' eligible compensation into the plan. During 1998, Genzyme
contributed $1,642,778 to the Plan under the profit sharing and stock
ownership programs. No contributions were made to the Plan under these
programs during 1997.
Participants may invest their contributions in any fund or funds in
increments determined at their own discretion. Employer contributions are
invested as directed by the Participants. If a Participant does not
provide direction with respect to the investment of the Participant's
contribution, all contributions will automatically be invested in the
CIGNA Guaranteed Income Fund.
VESTING
Participants have a 100% non-forfeitable interest in both employee and
employer contributions at all times. Upon termination of employment or
total and permanent disability, a Participant, or a Participant's
beneficiary in the case of a Participant's death, is entitled to receive
the full amount in the Participant's account.
BENEFITS
Distributions upon retirement at age 59 1/2 or later, death, or
termination are made in a lump-sum payment.
Changes in withholding percentages are permitted as of the last day of
each quarter of the Plan year. Reallocation of account balances among
investment funds can be requested and processed on a daily basis.
Contributions may be withdrawn from the Plan only upon a demonstration of
hardship, as defined, unless the Participant requesting such withdrawal
has attained the age of 59 1/2. New employees with funds held under a
previous employer's qualified plan are permitted to invest such funds
into the Plan. These investments are classified as "rollovers".
LOANS
Participants may obtain a loan from the Plan collateralized by the
Participant's vested interest in the Plan. No loan may exceed the lesser
of one half of the vested interest of a Participant, or $50,000; and must
be at least $1,000. A Participant may not obtain a loan unless the Plan
Administrator approves the transaction. All loans bear interest
determined by the Plan Administrator at the time of the loan. At December
31, 1998, all loans bear interest rates between 6% and 9% and mature
through May 2017. A written repayment schedule specifies the date and
payment amount necessary to amortize the loan.
8
10
GENZYME RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
-------------------------------------------
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual
method of accounting.
CASH EQUIVALENTS
The Plan considers cash equivalents to be short-term, highly liquid
investments, with initial maturities of less than three months.
INVESTMENT VALUATION AND INCOME RECOGNITION
Investments in the PBHG Growth Fund, CIGNA Stock Market Index Fund,
Fidelity Puritan Fund, Putnam Voyager Fund, Templeton Foreign Fund,
Genzyme General Division Stock Fund and Genzyme Tissue Repair Stock Fund
are stated at fair value, based upon quoted market prices in an active
market on the last business day of the Plan year. The CIGNA Guaranteed
Securities Separate Account and the CIGNA Guaranteed Income Fund are
valued at contract value which approximates fair value. Participant loans
are valued at cost plus accrued interest which approximates market value.
The Plan presents in the Statement of Changes in Net Assets Available for
Plan Benefits the net appreciation (depreciation) in the fair value of
its investments which consists of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments. Security
transactions are accounted for on the trade date. Gain or loss on sales
of investments is based on average cost.
INVESTMENT INCOME
Dividend and interest income is recorded as earned on the accrual basis.
CONTRIBUTIONS AND BENEFIT PAYMENTS
Employee contributions and matching employer contributions are recorded
in the period the payroll deductions are made. Benefits are recorded when
paid.
USE OF ESTIMATES
The preparation of the Plan's financial statements in conformity with
generally accepted accounting principles requires the Plan Administrator
to make significant estimates and assumptions that affect the reported
amounts of net assets available for benefits at the date of the financial
statements and the changes in net assets available for plan benefits
during the reporting period and, when applicable, disclosures of
contingent assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
RISKS AND UNCERTAINTIES
The Plan provides for various investment options in any combination of
stocks, bonds, fixed income securities, mutual funds, and other
investment securities. Investment securities are exposed to various
risks, such as interest rate, market, and credit risks. Due to the level
of risk associated with certain investment securities, it is at least
reasonably possible that changes in the values of investment securities
will occur in the near term and that such changes could materially affect
Participant's account balances and the amounts reported in the Statements
of Net Assets Available for Plan Benefits.
C. QUALIFICATION UNDER THE INTERNAL REVENUE CODE:
----------------------------------------------
The Internal Revenue Service has determined and informed the Company by a
letter dated May 25, 1995, that the Plan and related trust are designed
in accordance with applicable sections of the Code. The Plan has been
amended since receiving the determination letter. However, the Plan
Administrator and the Plan's tax counsel believe that the Plan is
designed and is currently being operated in compliance with the
applicable requirements of the Code.
9
11
GENZYME RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
D. AMENDMENT OR TERMINATION:
-------------------------
Genzyme intends to continue the Plan indefinitely but reserves the right
to terminate it at any time or amend it in any manner advisable. No
amendment may adversely affect the nonforfeitable interests of
Participants in their accounts or permit the use or diversion of any part
of the Plan other than for the exclusive benefit of the Participants or
their beneficiaries (subject to Plan provisions permitting payment of
fees and expenses). No merger, consolidation, or transfers of assets or
liabilities of the Plan may reduce the Participant's interest accrued to
the date of the merger, consolidation, or transfer. If Genzyme
discontinues its contributions or if the Plan is fully or partially
terminated, the affected Participant's rights to benefits will remain
fully vested.
E. RELATED PARTY:
--------------
Certain plan investments are shares of funds managed by CIGNA. CIGNA is
the trustee as defined by the Plan and, therefore, these transactions
qualify as party-in-interest. Fees paid by the Plan for the investment
management services amounted to approximately $8,000 for the year ended
December 31, 1998. The Plan also paid fees to CIGNA of approximately
$11,000 for administrative services.
F. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
---------------------------------------------------
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500:
December 31,
1998 1997
---- ----
Net assets available for benefits per the
financial statements $75,578,078 $53,490,233
Amounts payable to withdrawing
participants (109,028) --
----------- -----------
Net assets available for benefits per the
Form 5500 $75,469,050 $53,490,233
=========== ===========
The following is a reconciliation of benefits paid to participants per
the financial statements to the Form 5500:
Year ended
December 31, 1998
-----------------
Benefits paid to participants per the
financial statements $4,622,552
Add: Amounts allocated to withdrawing participants
at December 31, 1998 109,028
----------
Benefits paid to participants per the Form 5500 $4,731,580
==========
Amounts allocated to withdrawing participants are recorded on Form 5500
for benefit claims that have been processed and approved for payment
prior to December 31 but not yet paid as of that date.
10
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GENZYME RETIREMENT SAVINGS PLAN
LINE 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1998
FAIR OR
HISTORICAL CONTRACT
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT SHARES COST VALUE
----------------- ------------------------- ------ ---- -----
*CIGNA Guaranteed Income Fund 66,304 $ 1,875,662 $ 1,875,662
*CIGNA Fidelity Puritan 540,981 13,612,700 17,004,534
*CIGNA Stock Market Index 374,539 17,504,881 24,442,820
Putnam Voyager Fund 129,819 2,453,204 2,847,365
*CIGNA PBHG Growth 375,339 8,811,723 9,586,163
*CIGNA Templeton Foreign 76,346 836,697 838,880
* Genzyme General Division Common Stock 214,051 5,268,684 10,649,046
* Genzyme Tissue Repair Division Common Stock 84,461 749,965 190,038
The New England Guaranteed Investment
Contract -- 174,374 174,374
*CIGNA Guaranteed Securities
Separate Account 225,040 6,030,507 6,030,507
* Participant Loan Fund Loans with interest rates
between 6% and 9%
maturing through May 2017 1,608,827 1,608,827
----------- -----------
$58,927,224 $75,248,216
=========== ===========
* Denotes party-in-interest.
11
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GENZYME RETIREMENT SAVINGS PLAN
LINE 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1998
Historical Current Value Number of
Purchase Selling Cost of at Date of Gain Transactions
Description of Assets Price Price Assets Transaction (Loss) in the Series
Series of transactions in excess of 5% of the current value of plan assets at the beginning of the plan year:
CIGNA Guaranteed Securities
Separate Fund $2,055,206 N/A $2,055,206 $2,055,206 -- 94
CIGNA Guaranteed Securities
Separate Fund N/A 1,682,835 1,682,835 1,682,835 -- 175
Fidelity Puritan Pooled
Separate Account 3,270,414 N/A 3,270,414 3,270,414 -- 144
Fidelity Puritan Pooled
Separate Account N/A 1,857,055 1,597,113 1,857,055 259,942 184
CIGNA Stock Market Index Fund 5,007,486 N/A 5,007,486 5,007,486 -- 181
CIGNA Stock Market Index Fund N/A 2,967,750 2,368,968 2,967,750 598,782 193
PBHG Growth Fund 2,860,355 N/A 2,860,355 2,860,355 -- 133
PBGH Growth Fund N/A 1,793,688 1,739,476 1,793,688 54,212 188
Templeton Foreign Fund 2,826,964 N/A 2,826,964 2,826,964 -- 153
Templeton Foreign Fund N/A 2,409,809 2,451,590 2,409,809 (41,781) 113
CIGNA Guaranteed Income Fund 4,817,886 N/A 4,817,886 4,817,886 -- 182
CIGNA Guaranteed Income Fund N/A 3,282,859 3,282,859 3,282,859 -- 113
Genzyme General Division Stock Fund 2,401,296 N/A 2,401,296 2,401,296 -- 110
Genzyme General Division Stock Fund N/A 1,561,587 1,153,988 1,561,587 407,599 175
12