<PAGE>
SoGen Overseas Variable Fund
[LOGO]
Semi-Annual Report
June 30, 1999
<PAGE>
SoGen Overseas Variable Fund
THE PRESIDENT'S LETTER
Dear Shareholder:
From February 3, 1997 (commencement of operations) through June 30, 1999, the
value of an investment in your Fund increased at a compounded average annual
rate of 10.16%. Over the past twelve months, the rate was 20.06%.
As of June 30, 1999 your Fund's net assets, on an economic basis, were
invested as follows:
<TABLE>
<S> <C>
Foreign stocks(/1/) 94.6%
U.S. dollar bonds 1.2
Foreign currency bonds 1.0
U.S. dollar cash and equivalents 3.2
-----
100.0%
=====
</TABLE>
- --------
(/1/Includes)convertible bonds with moderate premia.
About 44% of the foreign stock portfolio was invested in developed countries
in Continental Europe and 21% in Japan. Other relatively large investments were
in Hong Kong (7%), the United Kingdom (5%) and New Zealand (5%).
In my letter to you on February 1, 1999, I expressed confidence that the
merits of the companies included in the portfolio would be recognized. A few
weeks later, that began to happen. Still, many small "value" stocks--our
primary focus--remain appealing, I believe.
For example, CDL Hotels International Limited is a Hong Kong based holding
company which controls about sixty-five hotels throughout the world (including
the well-known Plaza Hotel in New York City). We figure the stock sells at a
discount of about 40% to the value of the hotels. Such an investment represents
an attractive opportunity for the long-term.
Sincerely yours,
/s/ Jean-Marie Eveillard
Jean-Marie Eveillard
President
July 21, 1999
<PAGE>
SoGen Overseas Variable Fund
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
After several months of global financial turmoil, concerns over deflation
and the state of the economy worldwide weighed on most markets through the end
of 1998, when fears of instability began to subside. The U.S. market rebounded
by the end of the year and European growth stocks rose ahead of the
introduction of the Euro on January 1, 1999. Later, cyclical issues and
smaller stocks also strengthened in reaction to a more optimistic outlook for
global growth. Given that the Fund's investments primarily consist of small
and medium capitalization stocks, the stronger performance of the smaller
European issues had a positive impact on the Fund's net asset value.
In Asia, the Japanese market also experienced strong gains as evidence of an
improving economy began to surface. Several Asian countries also made a
surprising recovery from the effects of the financial and monetary crisis that
caused a severe recession in that part of the world. Stocks in South Korea,
Singapore and Hong Kong rose sharply. Consequently, the Fund's investments in
Asia--which account for approximately 30% of the portfolio--performed
strongly.
The U.S. dollar continued to rise for most of the period, particularly
against the Euro, which lost nearly 13% of its value since its introduction.
However, the Fund partially hedged its currency exposure, which offered some
protection against the rising dollar. The portfolio remained widely
diversified at all times.
SUMMARY OF FUND DATA
The table below covers the period from February 3, 1997 (commencement of
operations) to June 30, 1999.
<TABLE>
<CAPTION>
Net Asset
Value of
Investment
With
Investment Dividends and
Number Net Asset Capital Gains Income Distributions
of Shares Total Net Value Distributions Dividends Reinvested
Outstanding Assets Per Share Per Share Per Share (Cumulative)*
----------- --------- --------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
February 3, 1997
(commencement of opera-
tions)................. 10,000 $ 100,000 $10.00 -- -- $10.00
December 31, 1997....... 142,378 1,390,537 9.77 -- -- 9.77
December 31, 1998....... 418,376 4,212,629 10.07 -- $0.11 10.18
June 30, 1999........... 489,224 6,107,861 12.48 -- -- 12.62
</TABLE>
- --------
* The calculation is based on an assumed investment in one share with income
dividends and capital gains distributions reinvested in additional shares.
(No adjustment has been made for any income taxes payable by shareholders on
such dividends.)
2
<PAGE>
SoGen Overseas Variable Fund
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Cost Value
of Shares (Note 1) (Note 1)
--------- -------- --------
<C> <S> <C> <C>
Common and Preferred Stocks
United Kingdom (7.20%)
40,000 IMI plc (5)................................. $ 170,886 $ 162,054
30,000 Antofagasta Holdings plc (17)............... 105,563 139,511
25,000 Royal Doulton plc (9)....................... 34,319 52,612
3,500 Scottish Media Group plc (12)............... 40,860 48,001
50,000 Lonrho Africa plc (17)...................... 58,435 37,834
---------- ----------
410,063 440,012
---------- ----------
Sweden (1.28%)
7,000 IRO AB (5).................................. 76,432 77,913
---------- ----------
Denmark (1.36%)
2,000 Carlsberg International A/S "B' (9)......... 94,854 83,137
---------- ----------
Netherlands (4.25%)
5,500 Apothekers Cooperatie OPG U.A. (11)......... 143,421 136,019
4,000 Holdingmaatschappij de Telegraaf NV (12).... 87,149 78,726
3,000 European City Estates NV (15)............... 40,937 45,134
---------- ----------
271,507 259,879
---------- ----------
Germany (9.78%)
575 Buderus AG (5).............................. 229,781 229,301
2,000 Hornbach Holding AG Pfd. (10)............... 99,450 85,527
500 Bertelsmann AG D.R.C. (12).................. 61,129 58,455
2,500 Vossloh AG (7).............................. 67,609 56,675
200 Friedrich Grohe AG Pfd. (4)................. 55,109 56,056
1,000 Bayer AG (6)................................ 38,365 41,579
100 Suedzucker AG Pfd. (9)...................... 43,537 38,642
2,000 Gerresheimer Glas AG (9).................... 30,362 31,326
---------- ----------
625,342 597,561
---------- ----------
France (13.92%)
100 Societe Immobiliere Marseillaise (16)....... 167,570 231,851
500 Sagem ADP (8)............................... 173,629 206,090
1,750 Emin Leydier (2)............................ 94,133 127,853
225 Societe Sucriere de Pithiviers-le-Vieil (3). 97,176 86,573
650 Legrand ADP (5)............................. 81,074 74,682
300 Robertet SA (9)............................. 48,516 41,888
200 Didot-Bottin (16)........................... 27,847 32,954
500 Crometal (5)................................ 25,749 25,689
325 Gaumont SA (12)............................. 23,776 22,304
---------- ----------
739,470 849,884
---------- ----------
Switzerland (5.34%)
500 Edipresse SA Bearer (12).................... 136,200 162,270
150 Kuehne & Nagel International AG Bearer (7).. 102,325 104,110
200 Sika Finanz AG Bearer (4)................... 57,532 59,638
---------- ----------
296,057 326,018
---------- ----------
Spain and Portugal (4.35%)
7,000 Espirito Santo Financial Group SA (14)...... 111,897 114,625
15,000 Energia E Industrias Aragonesas SA (6)...... 86,968 80,375
7,000 Companhia de Celulose do Caima (2).......... 75,282 70,761
---------- ----------
274,147 265,761
---------- ----------
</TABLE>
3
<PAGE>
SoGen Overseas Variable Fund
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Cost Value
of Shares (Note 1) (Note 1)
--------- -------- --------
<C> <S> <C> <C>
Common and Preferred Stocks (continued)
Turkey (1.06%)
70,000 Usas Ucak Servisi A.S. (7).................. $ 77,167 $ 64,675
---------- ----------
Japan (20.49%)
35,000 The Dai-Tokyo Fire & Marine Insurance Co.,
Ltd. (14).................................. 121,553 125,738
5,000 Shimano Inc. (9)............................ 114,754 118,305
1,000 Secom Co., Ltd. (13)........................ 63,488 104,059
20,000 The Nichido Fire & Marine Insurance Co.,
Ltd. (14).................................. 104,055 102,903
2,500 Fuji Photo Film Co., Ltd. ADR (9)........... 83,944 95,000
5,000 Nitto Kohki Co., Ltd. (5)................... 37,028 94,975
500 Toho Co., Ltd. (12)......................... 53,535 73,089
10,000 Shoei Co., Ltd. (16)........................ 64,574 59,545
10,000 Tachi-S Co., Ltd. (5)....................... 46,486 58,637
3,000 SK Kaken Company Limited (6)................ 31,392 55,994
12,000 Nisshinbo Industries, Inc. (9).............. 45,570 54,606
3,000 Mandom Corp. (9)............................ 24,597 54,259
3,000 Chofu Seisakusho Co., Ltd. (9).............. 44,358 53,516
15,000 Aida Engineering, Ltd. (5).................. 61,907 49,676
7,000 Yomeishu Seizo Co., Ltd. (9)................ 39,643 47,289
8,000 Sotoh Co., Ltd. (9)......................... 49,537 44,266
300 Benesse Corporation (13).................... 10,082 32,580
1,000 T. Hasegawa Co., Ltd. (9)................... 19,801 27,254
---------- ----------
1,016,304 1,251,691
---------- ----------
Hong Kong (6.93%)
500,000 CDL Hotels International Limited (14)....... 163,525 209,442
200,000 Shaw Brothers (Hong Kong) Limited (12)...... 116,065 136,621
150,000 Jardine International Motor Holdings Ltd.
(7)........................................ 67,459 77,333
---------- ----------
347,049 423,396
---------- ----------
Singapore and Malysia (3.20%)
35,000 Clipsal Industries Ltd. (4)................. 20,962 54,250
20,000 Times Publishing Limited (12)............... 26,114 44,400
10,000 Genting Berhad (16)......................... 17,843 38,158
20,000 Tronoh Mines Malaysia Berhad (18)........... 17,807 34,474
10,000 Delgro Corporation Ltd. (12)................ 6,890 24,079
---------- ----------
89,616 195,361
---------- ----------
Thailand (0.31%)
3,500 The Oriental Hotel Public Company Limited
(15)....................................... 18,321 18,960
---------- ----------
Australia and New Zealand (5.93%)
114,285 Spotless Services Limited (13).............. 89,514 86,086
20,000 Wilson & Horton Limited (12)................ 94,108 83,590
250,000 Shortland Properties Limited (15)........... 81,537 76,712
150,000 Tasman Agriculture Limited (3).............. 65,427 61,899
45,000 Carter Holt Harvey Limited (2).............. 37,201 53,804
---------- ----------
367,787 362,091
---------- ----------
Canada (2.50%)
4,000 Canadian Pacific Limited (17)............... 106,814 95,250
5,000 Fletcher Challenge Limited, Class "A' (2)... 55,392 57,309
---------- ----------
162,206 152,559
---------- ----------
</TABLE>
4
<PAGE>
SoGen Overseas Variable Fund
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Cost Value
of Shares (Note 1) (Note 1)
--------- -------- --------
<C> <S> <C> <C>
Common and Preferred Stocks (continued)
Mexico (2.14%)
45,000 Industrias Penoles, S.A. de C.V. (1).... $ 156,409 $ 130,414
---------- ----------
Miscellaneous (3.38%)
10,000 Freeport McMoRan Copper & Gold Inc.,
Preferred Series "B' (a)(18)........... 183,721 159,375
10,000 Harmony Gold Mining Company Ltd. (18)... 49,422 47,065
---------- ----------
233,143 206,440
---------- ----------
Total Common and Preferred Stocks....... 5,255,874 5,705,752
---------- ----------
<CAPTION>
Principal
Amount
---------
<C> <S> <C> <C>
Bonds, Notes and Convertible Bonds
U.S. Dollar Convertible Bonds (2.61%)
$75,000 International Container Terminal
Services, Inc. 1 3/4% due 3/13/2004
(7).................................... 64,941 73,688
75,000 Scandinavian Broadcasting System SA 7
1/4% due 8/01/2005 (12)................ 73,203 83,719
20,000 P.T. Inti Indorayon Utama 7% due
5/02/2006 (2).......................... 14,521 2,000
---------- ----------
152,665 159,407
---------- ----------
Non U.S. Dollar Convertible Bond (0.51%)
GBP 20,000 Berisford plc 5% due 1/31/2015 (16)..... 26,806 31,134
---------- ----------
Total Bonds, Notes and Convertible
Bonds.................................. 179,471 190,541
---------- ----------
Total Investments (96.54%).............. $5,435,345* 5,896,293**
==========
Other assets in excess of liabilities
(3.46%)................................ 211,568
----------
Net assets (100.00%).................... $6,107,861
==========
</TABLE>
- --------
(a) Commodity-linked security whereby the coupon, dividend and/or redemption
amount is linked to the price of an underlying commodity.
* At June 30, 1999 cost is substantially identical for both book and federal
income tax purposes.
** Gross unrealized appreciation and depreciation of securities at June 30,
1999 were $722,355 and $261,407, respectively. (Net appreciation was
$460,948.)
<TABLE>
<CAPTION>
Foreign Currencies Industry Classifications
- ------------------ ------------------------
<S> <C> <C>
GBP--Pound Sterling (1) Metals and Minerals (10) Distribution
(2) Forest Products (11) Health Care
(3) Agriculture (12) Media
(4) Building Materials (13) Services
(5) Capital Goods (14) Financial Institutions
(6) Chemicals (15) Real Estate
(7) Transportation (16) Holding Companies
(8) Electronics (17) Conglomerates
(9) Consumer Products (18) Gold Related
</TABLE>
- --------
See Notes to Financial Statements.
5
<PAGE>
SoGen Overseas Variable Fund
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments, at value (Note 1):
Common and preferred stock (identified cost, $5,255,874)....... $5,705,752
Bonds, notes, and convertible bonds (identified cost,
$179,471)..................................................... 190,541
----------
Total investments (cost $5,435,345).......................... 5,896,293
Cash............................................................. 20,383
Receivable for Fund shares sold.................................. 10,961
Receivable for investment securities sold........................ 51,201
Receivable for forward currency contracts held, at value (Notes 1
and 6).......................................................... 120,050
Accrued interest and dividends receivable........................ 20,078
Deferred organization costs (Note 1)............................. 45,785
Receivable from SGAM Corp. (Note 2).............................. 54,368
Prepaid expenses (Note 1)........................................ 812
----------
Total Assets................................................. 6,219,931
----------
Liabilities:
Payable for investment securities purchased...................... 61,834
Payable for forward currency contracts held, at value (Notes 1
and 6).......................................................... 4,086
Distribution fees payable (Note 3)............................... 16,536
Directors' fees payable (Note 2)................................. 576
Accrued expenses and other liabilities........................... 29,038
----------
Total Liabilities............................................ 112,070
----------
Net Assets:
Capital stock (par value, $0.001 per share)...................... 489
Capital surplus.................................................. 5,155,739
Net unrealized appreciation (depreciation) on:
Investments.................................................... 460,948
Forward currency contracts..................................... 115,964
Foreign currency related transactions.......................... (670)
Undistributed net realized gains on investments.................. 285,061
Undistributed net investment income.............................. 90,330
----------
Net Assets (Note 1).......................................... $6,107,861
==========
Net Asset Value per Share (NAV) (based on 489,224 shares
outstanding; 1,000,000,000 shares authorized) (Note 5)............ $ 12.48
==========
Maximum Offering Price per Share................................... $ 12.48
==========
</TABLE>
- --------
See Notes to Financial Statements.
6
<PAGE>
SoGen Overseas Variable Fund
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
Investment Income:
Income:
Dividends (net of $6,347 foreign taxes withheld).............. $ 77,143
Interest (net of $108 foreign taxes withheld)................. 21,612
----------
Total income from operations................................ 98,755
----------
Expenses:
Investment advisory fees (Note 2)............................. 18,501
Custodian fees................................................ 27,541
Directors' fees (Note 2)...................................... 24,614
Amortization of deferred organization costs (Note 1).......... 8,918
Distribution fees (Note 3).................................... 6,081
Audit fees.................................................... 5,529
Legal fees.................................................... 4,099
Printing...................................................... 2,569
Insurance..................................................... 326
Registration and filing fees.................................. 255
Miscellaneous................................................. 743
----------
Total expenses from operations.............................. 99,176
----------
Advisory fees waived (Note 2)................................... (18,501)
Expense reimbursement (Note 2).................................. (43,146)
Expense reduction due to earnings credits (Note 1).............. (527)
----------
Net expenses from operations................................ 37,002
----------
Net investment income (Note 1).................................. 61,753
----------
Realized and Unrealized Gains (Losses) on Investments and Foreign
Currency Related Transactions (Notes 1 and 6):
Net realized gain (loss) from:
Investment transactions....................................... 222,946
Foreign currency related transactions......................... (7,498)
----------
215,448
----------
Change in unrealized appreciation (depreciation) of:
Investments................................................... 623,128
Foreign currency related transactions......................... 172,155
----------
795,283
----------
Net gain on investments and foreign currency related
transactions................................................... 1,010,731
----------
Net Increase in Net Assets Resulting from Operations.............. $1,072,484
==========
</TABLE>
- --------
See Notes to Financial Statements.
7
<PAGE>
SoGen Overseas Variable Fund
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
------------- -----------------
<S> <C> <C>
Operations:
Net investment income........................ $ 61,753 $ 69,719
Net realized gain from investments and
foreign currency related transactions....... 215,448 34,863
Increase (decrease) in unrealized
appreciation (depreciation) of investments
and foreign currency related transactions... 795,283 (151,773)
----------- -----------
Net increase (decrease) in assets resulting
from operations............................ 1,072,484 (47,191)
----------- -----------
Distributions to Shareholders:
Dividends paid from net investment income.... -- (45,275)
----------- -----------
Decrease in net assets resulting from
distributions.............................. -- (45,275)
----------- -----------
Fund Share Transactions (Note 5):
Net proceeds from shares sold................ 4,500,568 4,199,368
Net asset value of shares issued for
reinvested dividends and distributions...... -- 45,275
Cost of shares redeemed...................... (3,677,820) (1,330,085)
----------- -----------
Increase in net assets from Fund share
transactions............................... 822,748 2,914,558
----------- -----------
Net increase in net assets.................. 1,895,232 2,822,092
Net Assets (Note 1):
Beginning of period.......................... 4,212,629 1,390,537
----------- -----------
End of period (including undistributed net
investment income of $90,330 and $36,075,
respectively.).............................. $ 6,107,861 $ 4,212,629
=========== ===========
</TABLE>
- --------
See Notes to Financial Statements.
8
<PAGE>
SoGen Overseas Variable Fund
NOTES TO FINANCIAL STATEMENTS
Note 1--Significant Accounting Policies
SoGen Variable Funds, Inc. (the "Company") is an open-end, diversified
management investment company registered under the Investment Company Act of
1940, as amended. The Company consists of one portfolio, SoGen Overseas
Variable Fund (the "Fund"). The following is a summary of significant
accounting policies adhered to by the Fund.
a) Security valuation--Portfolio securities held in the Fund are valued based
on market quotations where available. Short-term investments maturing in sixty
days or less are valued at cost plus interest earned, which approximates value.
Securities for which current market quotations are not readily available and
any restricted securities are valued at fair value as determined in good faith
by the Board of Directors.
b) Deferred organization costs--Costs incurred in connection with the
organization of the Fund have been capitalized and are being amortized on a
straight-line basis over a sixty-month period from the date the Fund commenced
investment operations.
c) Security transactions and income--Security transactions are accounted for
on a trade date basis. The specific identification method is used in
determining realized gains and losses from security transactions. Dividend
income is recorded on the ex-dividend date. Interest income is recorded daily
on the accrual basis. In computing investment income, the Fund amortizes
discounts on debt obligations; however, premiums are not amortized.
d) Expenses--Earnings credits reduce custodian fees by the amount of interest
earned on balances with such service providers.
e) Foreign currency translation--The market values of securities which are
not traded in U.S. currency are recorded in the financial statements after
translation to U.S. dollars based on the applicable exchange rates at the end
of the period. The costs of such securities are translated at exchange rates
prevailing when acquired. Related dividends, interest and withholding taxes are
accrued at the rates of exchange prevailing on the respective dates of such
transactions.
The net assets of the Fund are presented at the foreign exchange rates and
market values at the close of the period. The Fund does not isolate that
portion of gains and losses on investments which is due to changes in foreign
exchange rates from that which is due to changes in market prices of the equity
securities. However, for federal income tax purposes the Fund does isolate the
effect of changes in foreign exchange rates from the changes in market prices
for realized gains and losses on debt obligations.
f) Forward currency contracts--In connection with portfolio purchases and
sales of securities denominated in foreign currencies, the Fund may enter into
forward currency contracts. Additionally, the Fund may enter into such
contracts to hedge certain other foreign currency denominated investments.
These contracts are valued at current market, and the related realized and
unrealized foreign exchange gains and losses are included in the statement of
operations. In the event that counterparties fail to settle these currency
contracts or the related foreign security trades, the Fund could be exposed to
foreign currency fluctuations.
g) U.S. income taxes--No provision has been made for U.S. federal income
taxes since it is the intention of the Fund to distribute to shareholders all
taxable net investment income and net realized
9
<PAGE>
SoGen Overseas Variable Fund
NOTES TO FINANCIAL STATEMENTS--(continued)
gains on investments, if any, within the allowable time limit, and to comply
with the provisions of the Internal Revenue Code for a regulated investment
company. Such income dividends and capital gains distributions are declared and
paid by the Fund on an annual basis.
h) Reclassification of capital accounts--On the statements of assets and
liabilities, as a result of certain differences in the computation of net
investment income and net realized capital gains under federal income tax rules
and regulations versus generally accepted accounting principles, a
reclassification has been made to increase undistributed net realized gains on
investments and decrease undistributed net investment income in the amount of
$7,498.
i) Use of estimates--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Note 2--Investment Advisory Agreement and Transactions with Related Persons
Under the terms of an investment advisory agreement dated August 16, 1996,
the Fund pays Societe Generale Asset Management Corp. ("SGAM Corp.") a monthly
advisory fee at an annual rate of 0.75% of the average daily net assets of the
Fund. In return, SGAM Corp. provides the Fund with advisory services and pays
certain Fund expenses, including salaries and office costs. SGAM Corp. has
agreed to waive its advisory fee and, if necessary, reimburse the Fund through
April 30, 2000 to the extent that the Fund's aggregate expenses exceed 1.50% of
the Fund's average daily net assets. For the six months ended June 30, 1999,
the Fund's investment advisory fees of $18,501 were waived in their entirety by
SGAM Corp. In addition, SGAM Corp. voluntarily reimbursed the Fund for expenses
in the amount of $43,146.
For the six months ended June 30, 1999, SG Cowen Securities Corporation
("SGCS"), the Fund's principal underwriter, or its affiliates received $1,001
in broker's commissions for portfolio transactions executed on behalf of the
Fund. Effective July 1, 1999, Funds Distributor Inc. ("FDI") became the
principal underwriter to the Fund.
Each director who is not an officer of the Company or an employee of SGAM
Corp., SGCS or its corporate affiliates is paid an annual fee of $6,000 plus
$1,000 for each meeting attended. For the six months ended June 30, 1999, such
fees amounted to $24,614.
Note 3--Distribution Plan and Agreement
The Company has entered into a Distribution Plan and Agreement (the "Plan")
with SGCS, pursuant to the provisions of Rule 12b-1 under the Investment
Company Act of 1940, whereby the Fund may pay quarterly, a distribution related
fee to SGCS at an annual rate of up to 0.25% of the Fund's average daily net
assets. The Plan provides that SGCS will use amounts payable by the Fund under
the Plan, in their entirety, for payments to insurance companies which are the
issuers of variable contracts invested in shares of the Fund, in order to pay
or reimburse such insurance companies for distribution and shareholder
servicing-related expenses incurred or paid by such insurance companies. For
the six months ended June 30, 1999, the distribution fees paid or payable to
SGCS by the Fund were $6,081. Effective July 1, 1999, FDI has assumed SGCS's
obligations under the Plan, pursuant to a new Rule 12b-1 Distribution Plan and
Agreement, which contains substantially similar terms and conditions as the
Plan.
Note 4--Purchases and Sales of Securities
During the six months ended June 30, 1999, the aggregate cost of purchases of
investments and proceeds from sales of investments, totaled $2,734,927 and
$1,778,267, respectively.
10
<PAGE>
SoGen Overseas Variable Fund
NOTES TO FINANCIAL STATEMENTS--(continued)
Note 5--Capital Stock
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 1999 December 31, 1998
------------- -----------------
<S> <C> <C>
Shares sold................................. 388,602 403,890
Shares issued for reinvested dividends and
distributions.............................. -- 4,602
Shares redeemed............................. (317,754) (132,494)
-------- --------
Net increase................................ 70,848 275,998
======== ========
</TABLE>
Note 6--Commitments
As of June 30, 1999, the Fund had entered into forward currency contracts, as
summarized below, resulting in net unrealized appreciation of $115,964.
Transaction Hedges:
Foreign Currency Purchases
<TABLE>
<CAPTION>
Settlement Unrealized Unrealized
Dates Foreign Currency U.S. $ Value at U.S. $ To Be Appreciation at Depreciation at
Through To Be Received June 30, 1999 Delivered June 30, 1999 June 30, 1999
- ---------- ----------------------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
7/02/99 24,711 Swiss Franc $ 15,881 $ 16,041 -- $ (160)
7/05/99 13,116 Pound Sterling 20,676 20,799 -- (123)
7/05/99 1,222,607 Japanese Yen 10,097 10,112 -- (15)
7/30/99 14,731 Euro 15,179 15,215 -- (36)
---------- ---------- -------- -------
61,833 62,167 -- (334)
---------- ---------- -------- -------
Portfolio Hedges:
<CAPTION>
Settlement Unrealized Unrealized
Dates Net Foreign Currency U.S. $ To Be U.S. $ Value at Appreciation at Depreciation at
Through To Be Delivered Received June 30, 1999 June 30, 1999 June 30, 1999
- ---------- ----------------------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
7/01/99 0 French Franc $ 290,574 $ 271,536 $ 19,038 --
7/08/99 81,000 Deutsche Mark 53,887 47,003 6,884 --
7/15/99 88,000 Australian Dollar 142,589 146,341 -- $(3,752)
10/06/99 246,000 Swiss Franc 285,304 269,774 15,530 --
11/03/99 857,000 Euro 921,199 875,278 45,921 --
11/04/99 75,520,000 Japanese Yen 896,941 867,920 29,021 --
10/05/01 318,500 New Zealand Dollar 184,459 180,803 3,656 --
---------- ---------- -------- -------
2,774,953 2,658,655 120,050 (3,752)
---------- ---------- -------- -------
$2,836,786 $2,720,822 $120,050 $(4,086)
========== ========== ======== =======
</TABLE>
11
<PAGE>
SoGen Overseas Variable Fund
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months
Ended For the Period
June 30, 1999 Year Ended February 3, 1997++ to
(Unaudited) December 31, 1998 December 31, 1997
------------- ----------------- ---------------------
<S> <C> <C> <C>
Selected Per Share Data
Net asset value,
beginning of period..... $10.07 $ 9.77 $10.00
------ ------ ------
Income from investment
operations:
Net investment income
(loss)................ 0.10 0.12 (0.01)
Net realized and
unrealized gains
(losses) on
investments........... 2.31 0.29 (0.22)
------ ------ ------
Total from investment
operations.......... 2.41 0.41 (0.23)
------ ------ ------
Less distributions:
Dividends from net
investment income..... -- (0.11) --
------ ------ ------
Net asset value, end of
period.................. $12.48 $10.07 $ 9.77
====== ====== ======
Total Return............. 23.93%@ 4.21% (2.30)%@
Ratios and Supplemental
Data
Net assets, end of period
(000's)................. $6,108 $4,213 $1,391
Ratio of operating
expenses to average net
assets.................. 1.50%*+ 1.50%+ 2.00%*+
Ratio of net investment
income to average net
assets.................. 2.50%*# 2.04%# (0.14)%*#
Portfolio turnover rate.. 38.11% 21.35% 8.88%
</TABLE>
- --------
++Commencement of operations.
* Annualized.
@ Total return is not annualized, as it may not be representative of the total
return for the year.
+ The annualized ratios of operating expenses to average net assets for the
six months ended June 30, 1999, the year ended December 31, 1998 and the
period from February 3, 1997 to December 31, 1997 would have been 4.01%,
4.98% and 16.07%, respectively, without the effect of the earnings credits,
and the investment advisory fee waiver and expense reimbursement provided by
SGAM Corp.
# The annualized ratios of net investment income to average net assets for the
six months ended June 30, 1999, the year ended December 31, 1998 and the
period from February 3, 1997 to December 31, 1997 would have been (0.02%),
(1.44%) and (14.20%), respectively, without the effect of earnings credits,
and the investment advisory fee waiver and expense reimbursement provided by
SGAM Corp.
- --------
See Notes to Financial Statements.
12
<PAGE>
SoGen Overseas Variable Fund
1221 Avenue of the Americas
New York, NY 10020
DIRECTORS AND OFFICERS
Directors
Philippe Collas Dominique Raillard
Jean-Marie Eveillard Nathan Snyder
Fred J. Meyer
Officers
Philippe Collas...........................................Chairman of the Board
Jean-Marie Eveillard..................................................President
Philip J. Bafundo.......................Vice President, Secretary and Treasurer
Edwin S. Olsen.................................................. Vice President
Elizabeth Tobin..................................................Vice President
Charles de Vaulx.................................................Vice President
Lynn L. Chin...................Assistant Vice President and Assistant Treasurer
Richard M. Boyer.......................................Assistant Vice President
John L. DeVita.........................................Assistant Vice President
Charles Edouard de Lardemelle..........................Assistant Vice President
Carol Moreno................................................Assistant Secretary
Warren Chan.................................................Assistant Treasurer
INVESTMENT ADVISER UNDERWRITER
Societe Generale Asset Management Corp. Funds Distributor Inc.
1221 Avenue of the Americas 1221 Avenue of the Americas
New York, NY 10020 New York, NY 10020
LEGAL COUNSEL INDEPENDENT AUDITORS
Dechert Price & Rhoads KPMG LLP
30 Rockefeller Plaza 757 Third Avenue
New York, NY 10112 New York, NY 10017
DOMESTIC CUSTODIAN GLOBAL CUSTODIAN
Investors Fiduciary Trust Company The Chase Manhattan Bank
801 Pennsylvania 4 Chase MetroTech Center
Kansas City, MO 64105 Brooklyn, NY 11245
SHAREHOLDER SERVICING AGENT
Investors Fiduciary Trust Company
801 Pennsylvania
Kansas City, MO 64105
The financial information included herein is taken from the records of the
Fund without examination by the Fund's independent auditors, who do not
express an opinion thereon. This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a currently effective
prospectus of SoGen Variable Funds, Inc.
13
