<p>NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization: The Equity 500 Index Portfolio (the 'Portfolio') is registered under the Investment Company Act of
1940 (the 'Act'), as amended, as a diversified, open-end management investment company. The Portfolio is
organized as a business trust under the laws of the state of New York.
Details concerning the Portfolio's investment objective and policies and the risk factors associated with the
Portfolio's investments are described in the Portfolio's Prospectus and Statement of Additional Information.
Valuation of Securities: The Portfolio values its investments at market value.
When valuing listed equity securities, the Portfolio uses the last sale price prior to the calculation of the Portfolio's
net asset value. When valuing equity securities that are not listed or that are listed but have not traded, the
Portfolio uses the bid price in the over-the-counter market.
When valuing short-term securities that mature within sixty days, the Portfolio uses amortized cost.
When valuing securities for which market quotations are not readily available or for which the market quotations
that are available are considered unreliable, the Portfolio determines a fair value in good faith under procedures
established by and under the general supervision of the Board. The Portfolio may use these procedures to
establish the fair value of securities when, for example, a significant event occurs between the time the market
closes and the time the Portfolio values its investments. After consideration of various factors, the Portfolio may
value the securities at their last reported price or at fair value. On December 31, 2001 there were no fair valued
Securities Transaction and Investment Income: Securities transactions are recorded on trade date. Realized gains
and losses are determined by comparing the proceeds of a sale or the cost of a purchase with a specific offsetting
Dividend income is