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[GRAPHIC]
[GRAPHIC]
[GRAPHIC]
JUNE 30, 1998 SEMI-ANNUAL REPORT
STATE FARM VARIABLE PRODUCTS TRUST
[LOGO]
STATE FARM'S VARIABLE DEFERRED ANNUITY &
STATE FARM'S VARIABLE UNIVERSAL LIFE INSURANCE
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SERVICE
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IS ONLY A PHONE CALL AWAY
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toll free
1-888-702-2307
Contact your local State Farm Agent or
call our Variable Products Administration
Department TOLL FREE, at 1-888-702-2307.
Unit prices are available to you
24 HOURS A DAY, 7 DAYS A WEEK.
Operations Specialist available 7 a.m. - 7 p.m.
Central Time Monday through Friday.
By providing telephone authorization, and having
your Personal Identification Number (PIN), you can:
OBTAIN ACCOUNT VALUES (24 HRS A DAY)
OBTAIN ANSWERS SPECIFIC TO YOUR POLICY
TRANSFER ASSETS AMONG FUNDS
CHANGE YOUR PREMIUM ALLOCATION
CHANGE YOUR PIN
CHANGE YOUR EXISTING DOLLAR COST AVERAGING
CHANGE YOUR EXISTING PORTFOLIO REBALANCING
REQUEST A POLICY WITHDRAWAL
REQUEST A POLICY LOAN
(VARIABLE UNIVERSAL LIFE ONLY)
Visit our homepage www.statefarm.com
<PAGE>
Message from Roger Tompkins
Since 1929, State Farm Life has helped Americans plan for an uncertain future by
protecting their families, lifestyles and assets. This is our first report on
the funds underlying our two new products from State Farm -- Variable Universal
Life Insurance and Variable Deferred Annuity.
Table of Contents
<TABLE>
<S> <C>
The Economy and Markets 3
Portfolio of Investments
Large Cap Equity Index Fund 6
Small Cap Equity Index Fund 12
International Equity Index
Fund 30
Stock & Bond Balanced Fund 42
Bond Fund 43
Money Market Fund 45
Financial Statements
Statements of Assets and
Liabilities 46
Statements of Operations 47
Statements of Changes in Net
Assets 48
Notes to Financial Statements 49
Financial Highlights 53
Notice of Withholding Election
</TABLE>
This report must be accompanied or preceded by a prospectus.
In addition, our good neighbor agents throughout the United States are always
ready to discuss your needs and to provide products that meet those needs. We
hope you will take the
[PHOTO]
opportunity to meet regularly with your agent to review your
financial situation and your personal goals. Such
discussions provide an
excellent way to remain focused, to determine what changes
may be appropriate from time to time, and to consider
additional State Farm products that may be right for you.
We at State Farm Life are proud that you have chosen our
company to help you prepare for the future. The benefits guaranteed under our
variable annuity and variable universal life insurance policies are backed by a
company you know and trust. The State Farm Life Insurance Companies have
received the highest ratings for financial strength and claims-paying ability by
all the major rating agencies. These high ratings tell you that the company has
the financial strength to provide the benefits promised by each of these
policies. Please remember that the cash value of the separate accounts will
fluctuate based upon the value of the underlying funds.
We appreciate the confidence you have shown in State Farm, and we promise to
provide you with the highest quality products, backed by prudently managed
investment portfolios and a company you can depend on.
[/S/ ROGER TOMPKINS]
1 -------
<PAGE>
Executive Vice President
State Farm Life Insurance Company
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2
<PAGE>
Message from Kurt Moser
Senior Vice President of State Farm Investment Management Corp.
The last few years have been a wonderful time for investors.
Economies in the United States and many other countries have
grown consistently with minimal inflation. Low interest
rates and
[PHOTO]
growing corporate profits have encouraged businesses to
invest in plants and equipment,
generating further growth.
Optimistic consumers are buying
houses, cars, services and mutual funds. All of these
positive trends have worked together to increase earnings for companies and move
financial markets higher.
In this first semi-annual report on the funds underlying the State Farm Variable
Deferred Annuity and Variable Universal Life Insurance products, we are
delighted to report our investment results. However, it seems appropriate to
remind investors that current market conditions are unusual. Historical studies
indicate that annual returns from the large-company segment of the U.S. stock
market have averaged 11% over the last 70 years. For the first six months of
1998, total return from the S&P 500 Index was 17.6%, after three consecutive
years of returns well above 20%. The bond market has also been generally strong,
though not as consistently as the stock market.
While we see no special reason to expect a decline in U.S. financial markets in
the immediate future, we cannot expect the economy and markets to continue
improving at their current pace. By any traditional measure, stock prices in
most of the developed world are at record high valuations. In order for these
levels to be maintained, very favorable conditions, including good corporate
profit growth and low interest rates, will likely be necessary. Also please
remember that variable products involve fees and charges which are described in
your prospectus.
I have included a discussion on the U.S. Economy, U.S. Equity Market, U.S. Bond
Markets, as well as our underlying funds on pages 3, 4, and 5.
[/S/ KURT R. MOSER]
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2
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The U.S. Economy
During the first half of 1998, the domestic economy continued its seven-year
trend of growth with minimal inflation, low interest rates and low unemployment.
A favorable combination of technology improvements, plentiful supplies of basic
commodities, and stable monetary policies are keeping inflation low. Low
interest rates encourage capital investment, which stimulates the industrial
sector while improving productivity. Consumers, with confidence bolstered by the
robust economy and increased wealth from investing, continue to spend and
invest, providing further strength for the economy. The strong economy has
increased tax revenues, enabling the Federal government to develop a balanced
budget for 1999, following 30 years of deficits. The only apparent cloud on the
horizon is the ongoing financial crisis in Asia, which is dampening demand for
exports while providing price competition for U.S. manufactured goods.
Early indications are that the economic growth slackened considerably in the
second quarter from the 5.4% growth rate of the first quarter. Major factors
contributing to the reduced growth rate were a strike at General Motors and
Asia's economic problems. The slowdown is particularly apparent in
manufacturing, a sector that is more sensitive to foreign demand and competition
than services and consumer goods.
Economic Growth and Inflation
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Economic Growth Inflation
<S> <C> <C>
1988 3.8% 4.4%
1989 3.4% 4.6%
1990 1.3% 6.1%
1991 -1.0% 3.1%
1992 2.7% 2.9%
1993 2.3% 2.7%
1994 3.5% 2.7%
1995 2.0% 2.5%
1996 2.8% 3.3%
1997 3.8% 1.7%
</TABLE>
Economic growth is represented by the percentage change in Real Gross Domestic
product. Percentage change in the Consumer Price Index-Urban is used for
inflation.
The U.S. Equity Market
The domestic equity market continued its long-term upward trend during the first
half of 1998, but there were marked differences among returns from various
classes of stocks. The best performers were stocks of large consumer-oriented
companies, whose earnings benefited from buoyant spending by U.S. households.
Slackened Asian demand combined with some indications of slowing in the domestic
manufacturing sector to dampen performance of stocks in a broad range of
industries from steel to oil to semiconductors.
The major stock indexes, such as the Dow Jones Industrial Average and the
Standard & Poor's 500 Index were up less than 3 percent for the quarter that
ended June 30, though strong increases in the first quarter produced gains in
the mid teens for the first half of 1998. In most sectors, the largest companies
were the best performers; returns from the Standard & Poor's 500 Index were
therefore considerably higher than from the Russell 2000-Registered Trademark-
index, which is made up of stocks of smaller companies. This index dropped 4.9%
for the quarter and is up 5.6% since the end of 1997.
3 -------
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The U.S. Bond Market
Recent economic conditions have been good for bonds, as well as for stocks,
since bonds tend to perform well when inflation is low and investors are
confident they will get their money back. When the Federal Reserve left interest
rates unchanged in March, the U.S. bond market, which had considered tighter
monetary policy a possibility, strengthened further. By early July, when the
Federal Reserve again left rates unchanged, the bond market exhibited little
response to this widely anticipated decision. The Lehman Brothers
Government/Corporate
Intermediate Term Index, which is considered representative of the market for
high-quality intermediate-term bonds, produced a total return of 3.5% for the
first six months of 1998.
For the U.S. bond market, Asian problems have been a plus, as wary investors
seek a safer haven in U.S. securities. Indications that problems in Asia may
contribute to a slowing in the U.S. economy could also be positive for future
bond performance. If the economy slows spontaneously, as recent reports
indicate, the Federal Reserve may not find it necessary to temper domestic
economic growth by raising interest rates.
International Economies and Markets
Recent trends have varied widely among international economies and equity
markets. In Europe, as in the United States, real growth is robust, inflation is
low, and markets are soaring. The introduction of a single currency probably
bodes well for continued growth, as economic opportunities throughout Europe
expand. Meantime, some evidence suggests that the Asian financial crisis may
persist for months or even years. Economies in that region remain extremely
weak, and financial markets have dropped dramatically.
The EAFE-Registered Trademark- Free Index is a broad index that encompasses
markets throughout the free world. Despite market declines throughout Asia, the
index achieved a modestly positive return in 1997, and total return for the
first six months of 1998 was 16%. Markets in Europe, which account for 73% of
the index, have been so strong that they have outweighed weakness in Asia, which
represents 23% of the index. Further, because EAFE-Registered Trademark- Free is
a developed-country index, it excludes some of the very weakest markets, such as
Indonesia and Thailand.
STATE FARM VARIABLE PRODUCTS TRUST UNDERLYING FUNDS
Large Cap Equity Index Fund
The Large Cap Equity Index Fund seeks to match the return of the S&P
500-Registered Trademark- Index(1), which tracks the common stock performance of
500 large companies in a broad range of industries. The Fund invests in each of
the stocks in the S&P 500-Registered Trademark- in the same
capitalization-weighted proportion that the stock has in the index. For the
period ended June 30, 1998, the Fund benefited from continued strength in the
equity market, with particularly strong performance from the large companies
that are included in the S&P 500 Index.
Small Cap Equity Index Fund
The Small Cap Equity Index Fund seeks to match the return of the Russell
2000-Registered Trademark- Index(2), which includes 2000 companies with average
market capitalization of $467 million. This index was created by the Frank
Russell Trust Company to give investors an idea of how the stocks of smaller
companies are performing. The Small Cap Equity Index Fund invests in a
diversified portfolio of common stocks intended to reflect, as a group, the
total investment return of the Russell 2000-Registered Trademark- Index. Returns
will sometimes vary from the return of the Index because the Fund invests in a
representative sample of the 2000 stocks in the Index, but not in every stock
included in the Index.
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Past performance is not predictive of future performance. Investment return and
principal value will fluctuate so that your shares, when redeemed, may be worth
more or less than their original cost.
(1) "Standard & Poor's-Registered Trademark-", "S&P-Registered Trademark-", "S&P
500-Registered Trademark-", "Standard & Poor's 500" and "500" are trademarks
of The McGraw-Hill Companies, Inc. and have been licensed for use by the
Trust. Neither the Large Cap Equity Index Fund nor the Stock and Bond
Balanced Fund (the "Funds") is sponsored, endorsed, sold or promoted by
Standard & Poor's, and Standard & Poor's makes no representation regarding
the advisability of investing in the Funds. (For more information regarding
the S&P 500 Index, see the SAI.)
(2) The Russell 2000-Registered Trademark- Index is a trademark/service mark of
the Frank Russell Company. Russell-TM- is a trademark of the Frank Russell
Company. The Small Cap Equity Index Fund (the "Fund") is not sponsored,
endorsed, sold or promoted by the Frank Russell Company, and the Frank
Russell Company makes no representation regarding the advisability of
investing in the Fund. (For more information regarding the Russell 2000
Index, see the SAI.)
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4
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International Equity Index Fund
The benchmark index used by the International Equity Index Fund is the Morgan
Stanley EAFE-Registered Trademark- Free Index(3), which measures the performance
of stock markets in 15 European nations, Australia, New Zealand, and the four
largest markets in Asia. The Index includes equity securities of approximately
1,100 companies in these countries. As of June 30, 1998, the countries with the
highest weights were the United Kingdom, which accounted for 22.3% of the Index,
Japan at 20.6%, and Germany, which represented 11.4%.
Bond Fund
The Bond Fund seeks to realize over a period of years the highest yield
consistent with prudent investment management through current income and capital
gains. For different time periods, total return may vary considerably depending
on interest rate trends, since bond prices and interest rates move in opposite
directions. However, investors should bear in mind that the income from the Bond
Fund is quite stable.
Stock and Bond Balanced Fund
The Stock and Bond Balanced Fund seeks long-term growth of capital, balanced
with current income by investing primarily in shares of the Large Cap Equity
Index Fund and the Bond Fund. The Balanced Fund usually invests approximately
60% of its net assets in the Large Cap Equity Index Fund and 40% in the Bond
Fund.
At June 30, 1998, 60.5% of the Stock and Bond Balanced Fund's assets were
invested in the Large Cap Equity Index Fund and 39.5% in the Bond Fund, in line
with the Fund's stated objectives.
Money Market Fund
The Money Market Fund seeks to maximize current income to the extent consistent
with the preservation of capital and maintenance of liquidity. The Fund pursues
this objective by investing in high quality commercial paper and other
short-term debt securities. An investment in the Money Market Fund is neither
insured nor guaranteed by the U.S. Government. The Money Market Fund will
attempt to maintain a stable net asset value of $1.00 per share, but there can
be no assurance that the fund will be able to do so.
- ------------------------
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate so that your shares, when redeemed, may be worth
more or less than their original cost.
(3) The Morgan Stanley Capital International Europe, Australia and Far East Free
(EAFE-Registered Trademark- Free) Index is the exclusive property of Morgan
Stanley & Co. Incorporated ("Morgan Stanley"). Morgan Stanley Capital
International is a service mark of Morgan Stanley and has been licensed for
use by the Trust. The International Equity Index Fund (the "Fund") is not
sponsored, endorsed, sold or promoted by Morgan Stanley and Morgan Stanley
makes no representation regarding the advisability of investing in the Fund.
(For more information regarding the Morgan Stanley Capital International
EAFE Free Index, see the SAI.)
5 -------
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STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
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<C> <S> <C>
COMMON STOCKS (98.6%)
Aerospace/Defense (.9%)
2,451 Boeing Co. $ 109,223
302 General Dynamics Corp. 14,043
453 Lockheed Martin Corp. 47,961
158 Northrop Grumman Corp. 16,294
------------
187,521
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Agriculture, Foods, & Beverage (6.3%)
1,204 Anheuser Busch Companies Inc. 56,814
1,384 Archer-Daniels-Midland Company 26,815
729 Bestfoods 42,328
163 Brown Forman Corp. Class B 10,473
1,114 Campbell Soup Company 59,181
1,178 ConAgra Inc. 37,328
99 Adolph Coors Co. Class B 3,366
381 General Mills Inc. 26,051
350 Hershey Foods Corp. 24,150
908 HJ Heinz Co. 50,962
996 Kellogg Company 37,412
3,634 Pepsico Inc. 149,675
588 Pioneer Hi-Bred International 24,329
317 Quaker Oats Co. 17,415
238 Ralston Purina Co. 27,801
1,149 Sara Lee Corp. 64,272
837 Seagram Limited 34,265
145 Supervalu Inc. 6,434
799 Sysco Corp. 20,474
5,955 The Coca-Cola Company 509,152
1,564 Unilever NV 123,458
282 William Wrigley Jr. Co. 27,636
------------
1,379,791
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Airlines (.5%)
439 AMR Corp. (a) 36,547
173 Delta Air Lines Inc. 22,360
781 Laidlaw Inc. 9,518
522 Southwest Airlines Co. 15,464
232 US Airways Group Inc. (a) 18,386
------------
102,275
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Automotive (2.2%)
56 Aeroquip-Vickers Inc. 3,269
1,583 Chrysler Corp. 89,242
182 Cooper Tire & Rubber Co. 3,754
101 Cummins Engine Inc. 5,176
260 Dana Corp. 13,910
151 Echlin Inc. 7,408
2,937 Ford Motor Co. 173,283
1,623 General Motors Corp. 108,437
422 Genuine Parts Co. 14,585
377 Goodyear Tire & Rubber Co. 24,293
287 ITT Industries Inc. 10,727
175 Navistar International Corp. (a) 5,053
<CAPTION>
Shares Value
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<C> <S> <C>
180 Paccar Inc. $ 9,405
147 Snap On Inc. 5,329
286 TRW Inc. 15,623
------------
489,494
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Banks (8.5%)
1,712 Banc One Corporation 95,551
710 Bank of Boston Corp. 39,494
902 Bank of New York Inc. 54,740
1,630 BankAmerica Corp. 140,893
221 Bankers Trust New York Corp. 25,650
343 BB&T Corp. 23,195
2,084 Chase Manhattan Corp. 157,342
1,112 Citicorp 165,966
365 Comerica Inc. 24,181
602 Fifth Third Bancorp 37,926
691 First Chicago NBD Corp. 61,240
2,338 First United Corp. 136,188
678 Fleet Financial Group Inc. 56,613
138 Golden West Financial 14,671
257 HF Ahmanson & Company 18,247
497 Hunting Bancshares Inc. 16,649
1,078 Keycorp 38,404
618 Mellon Bank Corp. 43,028
420 J.P. Morgan & Co. 49,193
2,329 Nationsbank Corp. 178,168
262 Northern Trust Co. 19,977
1,849 Norwest Corporation 69,106
709 PNC Bank Corp. 38,153
268 Republic New York Corp. 16,867
386 State Street Corp. 26,827
416 Summit Bancorp 19,760
511 Suntrust Banks Inc. 41,551
660 Synovus Financial Corp. 15,675
1,800 U.S. Bancorp 77,400
493 Wachovia Corporation 41,658
923 Washington Mutual Inc. 40,093
198 Wells Fargo & Co. 73,062
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1,857,468
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Building Materials & Construction (.3%)
106 Armstrong World Industries 7,142
214 Black & Decker Corp. 13,054
143 Centex Corp. 5,398
97 Fleetwood Enterprises Inc. 3,880
78 Kaufman & Broad Home Corp. 2,476
395 Masco Corp. 23,897
132 Owens Corning 5,387
134 Pulte Corp. 4,003
203 Stanley Weeks 8,437
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73,674
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Chemicals (2.4%)
553 Air Products & Chemicals Inc. 22,120
</TABLE>
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6
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STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
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168 BF Goodrich Co. $ 8,337
<C> <S> <C>
543 Dow Chemical 52,501
182 Eastman Chemical Co. 11,329
308 Ecolab Inc. 9,548
2,725 EI Du Pont De Nemours & Co. 203,353
339 Engelhard Corp. 6,865
73 FMC Corp. (a) 4,978
145 Great Lakes Chemical Corp. 5,718
218 Hercules Inc. 8,965
268 International Flavors & Fragrances 11,641
1,469 Monsanto Co. 82,080
316 Morton International Inc. 7,900
158 Nalco Chemical Co. 5,550
421 PPG Industries Inc. 29,286
380 Praxair Inc. 17,789
147 Rohm & Haas Co. 15,279
250 Sigma-Aldrich Corporation 8,781
361 Union Carbide Corp. 19,268
198 WR Grace 3,378
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534,666
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Commercial Service/Supply (1.6%)
2,060 Cendant Corp. (a) 43,003
389 Cognizant Corp. 24,507
212 Deluxe Corp. 7,592
405 Dun & Bradstreet Corp. (a) 14,631
774 Eastman Kodak Co. 56,550
357 FDX Corp. (a) 22,402
248 H & R Block Inc. 10,447
327 Interpublic Group Companies Inc. 19,845
227 Moore Limited 3,008
664 Pitney Bowes Inc. 31,955
115 Polaroid Corp. 4,090
341 RR Donnelley & Sons Inc. 15,601
613 Service Corp. International 26,282
776 Xerox Corporation 78,861
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358,774
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Computer Software and Services (4.7%)
171 Adobe Systems Inc. 7,257
122 Autodesk Inc. 4,712
719 Automatic Data Processing Inc. 52,397
178 Ceridian Corp. (a) 10,457
1,342 Computer Associates International Inc. 74,565
375 Computer Sciences Corp. (a) 24,000
1,105 First Data Corp. 36,810
406 Gateway 2000 Inc. (a) 20,554
1,024 HBO & Co. 36,096
194 Kla-Tencor Corp. (a) 5,371
5,948 Microsoft Corporation (a) 644,615
848 Novell Inc. (a) 10,812
2,348 Oracle Corp. (a) 57,673
643 Parametric Technology Corp. (a) 17,441
50 Shared Medical Systems Corp. 3,672
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
599 Unisys Corp. (a) $ 16,922
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1,023,354
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Computers (5.0%)
886 3Com Corp. (a) 27,189
349 Apple Computer Inc. (a) 10,012
497 Ascend Communications (a) 24,633
543 Bay Networks Inc. (a) 17,512
391 Cabletron System Inc. (a) 5,254
2,470 Cisco Systems Inc. (a) 227,394
4,020 Compaq Computer Corp. 114,068
96 Data General Corp. (a) 1,434
1,539 Dell Computer Corp. (a) 142,838
1,191 EMC Corp. (a) 53,372
2,508 Hewlett-Packard Company 150,167
325 Ikon Office Solutions 4,733
2,294 International Business Machines Corp. 263,380
563 Seagate Technology (a) 13,406
449 Silicon Graphics Inc. (a) 5,444
908 Sun Microsystems Inc. (a) 39,441
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1,100,277
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Consumer & Marketing (4.1%)
137 Alberto-Culver Company 3,973
172 American Greetings Corp. Class A 8,761
304 Avon Products Inc. 23,560
249 Brunswick Corp. 6,163
256 Clorox Co. 24,416
701 Colgate Palmolive Co. 61,688
331 Darden Restaurants Inc. 5,255
517 Fort James Corp. 23,006
353 Hasbro Inc. 13,877
78 Jostens Inc. 1,882
1,363 Kimberly Clark Corp. 62,528
741 Mattel Inc. 31,354
215 Maytag Corp. 10,616
1,689 McDonald's Corporation 116,541
383 Newell Co. 19,078
3,224 Procter & Gamble Co. 293,586
349 Rubbermaid Incorporated 11,582
2,713 The Gillette Company 153,793
353 Tricon Global Restaurants (a) 11,186
147 Tupperware Corp. 4,134
339 Wendys International Inc. 7,966
175 Whirlpool Corp. 12,031
------------
906,976
------------
Consumer Discretionary (.0%)
7 Abercrombie & Fitch Co. (a) 308
------------
Containers & Packaging (.3%)
60 Ball Corp. 2,411
131 Bemis Inc. 5,355
296 Crown Cork & Seal Inc. 14,060
371 Owens-Illinois Inc. (a) 16,602
169 Sealed Air Corporation (a) 6,211
</TABLE>
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<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
25 Sealed Air Corporation Preferred (a) $ 919
<C> <S> <C>
223 Stone Container Corp. (a) 3,484
138 Temple Inland Inc. 7,435
------------
56,477
------------
Durable Products (.0%)
80 Cincinnati Milacron Inc. 1,945
------------
Electronic/Electrical Mfg. (6.2%)
333 Advanced Micro Devices Inc. (a) 5,682
549 AMP Inc. 18,872
903 Applied Materials Inc. (a) 26,638
115 EG & G Inc. 3,450
128 Elmer Perkin Corp. 7,960
1,061 Emerson Electric Co. 64,058
7,893 General Electric Company 718,263
99 General Signal Corp. 3,564
294 Honeywell Inc. 24,567
4,116 Intel Corporation 305,099
333 LSI Logic Corp. (a) 7,680
532 Micron Technology Inc. (a) 13,200
401 National Semiconductor Corp. (a) 5,288
197 Raychem Corporation 5,824
802 Raytheon Co. 47,418
467 Rockwell International Corp. 22,445
126 Tektronix Inc. 4,457
929 Texas Instruments Inc. 54,172
135 Thomas & Betts Corp. 6,649
248 WW Grainger Inc. 12,354
------------
1,357,640
------------
Engineering & Construction (.1%)
217 Fluor Corp. 11,067
81 Foster Wheeler Corp. 1,736
137 McDermott International Inc. 4,718
------------
17,521
------------
Environmental Controls (.3%)
445 Browning Ferris Industries 15,464
1,134 Waste Management Inc. 39,690
------------
55,154
------------
Financial Services (4.6%)
1,103 American Express Company 125,742
642 American General Corporation 45,702
833 Associates First Capital 64,037
131 Beneficial Corp. 20,068
665 Charles Schwab Corp. 21,612
355 Cincinnati Financial Corp. 13,623
256 Countrywide Credit Industries Inc. 12,992
350 Equifax Inc. 12,709
1,658 Federal Home Loan Mortgaging 78,030
2,516 Federal National Mortgaging Association 152,847
642 Franklin Resources Inc. 34,668
322 Green Tree Financial Corp. 13,786
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
767 Household International Inc. $ 38,158
279 Lehman Brothers Holding Inc. 21,640
224 MBIA Inc. 16,772
1,201 MBNA Corporation 39,633
319 Mercantile Bancorporation 16,070
865 Merrill Lynch & Co. Inc. 79,796
278 MGIC Investment Corp. 15,863
1,468 Morgan Stanley Dean Witter 134,139
776 National City Corp. 55,096
------------
1,012,983
------------
Forest Products (.6%)
137 Boise Cascade Corp. 4,487
217 Champion International Corp. 10,674
210 Georgia Pacific Corp. 12,377
729 International Paper Co. 31,347
244 Louisiana Pacific Corp. 4,453
259 Mead Corporation 8,223
58 Potlatch Corp. 2,436
164 Union Camp Corp. 8,139
254 Westvaco Corp. 7,175
464 Weyerhaeuser Co. 21,431
297 Willamette Industries Inc. 9,504
------------
120,246
------------
Health Care (11.4%)
3,761 Abbott Laboratories 153,731
155 Allergan Inc. 7,188
221 Alza Corporation (a) 9,558
3,141 American Home Products Corp. 162,547
135 Baush & Lomb Inc. 6,767
669 Baxter International Inc. 36,001
284 Becton Dickinson & Co. 22,046
273 Biomet Inc. 9,026
454 Boston Scientific Corp. (a) 32,518
2,416 Bristol-Myers Squibb 277,689
258 Cardinal Health Inc. 24,187
1,583 Columbia/HCA Healthcare Corp. 46,105
139 CR Bard Inc. 5,291
2,666 Eli Lilly & Co. 176,123
356 Guidant Corp. 25,387
961 Healthsouth Corp. (a) 25,647
427 Humana Inc. (a) 13,317
3,241 Johnson & Johnson 239,024
171 Mallinckrodt Inc. 5,077
152 Manor Care Inc. 5,842
1,162 Medtronic Inc. 74,077
2,883 Merck & Co. Inc. 385,601
3,147 Pfizer Inc. 342,040
1,218 Pharmacia & Upjohn Inc. 56,180
1,777 Schering Plough Corp. 162,818
233 St. Jude Medical Inc. (a) 8,577
735 Tenet Healthcare Corp. (a) 22,969
466 United Healthcare Corp. 29,591
176 United States Surgical Corp. 8,030
</TABLE>
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8
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
2,002 Warner Lambert Co. $ 138,889
<C> <S> <C>
------------
2,511,843
------------
Insurance (4.5%)
337 Aetna Incorporated 25,654
1,006 Allstate Corp. 92,112
1,711 American International Group Inc. 249,806
400 Aon Corp. 28,100
405 Chubb Corp. 32,552
519 Cigna Corp. 35,811
441 Conseco Inc. 20,617
182 General Re Corp. 46,137
286 Hartford Financial Services Group 32,711
263 Jefferson Pilot Corp. 15,238
229 Lincoln National Corp. 20,925
280 Loews Corp. 24,395
606 Marsh & McLennan Companies Inc. 36,625
169 Progressive Corp. Ohio 23,829
215 Providian Financial Corp. 16,891
372 Safeco Corp. 16,903
563 St. Paul Companies Inc. 23,681
470 Sunamerica Inc. 26,996
370 Torchmark Corp. 16,927
151 Transamerica Corp. 17,384
2,780 Travelers Group Inc. 168,538
317 Unum Corp. 17,593
------------
989,425
------------
Lodging & Gaming (.2%)
227 Harrahs Entertainment Inc. (a) 5,278
585 Hilton Hotels Corp. 16,672
600 Marriott International Class A 19,425
458 Mirage Resorts Inc. (a) 9,761
------------
51,136
------------
Machinery & Manufacturing (2.8%)
1,387 Allied Signal Inc. 61,548
280 Avery Dennison Corp. 15,050
50 Briggs & Stratton Corp. 1,872
175 Case Corp. 8,444
869 Caterpillar Inc. 45,948
292 Cooper Industries Inc. 16,042
552 Corning Incorporated 19,182
117 Crane Co. 5,682
594 Deere & Co. 31,408
554 Dover Corp. 18,974
179 Eaton Corp. 13,917
99 Harnischfeger Inc. 2,803
633 Illinois Tool Works 42,213
396 Ingersoll Rand Co. 17,449
192 Johnson Controls Inc. 10,980
137 Millipore Corp. 3,733
966 Minnesota Mining & Manufacturing 79,393
16 Nacco Industries Inc. 2,068
111 National Services Industries Inc. 5,647
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
279 Pall Corporation $ 5,719
298 Parker Hannifin Corp. 11,361
405 Tenneco Inc. 15,415
393 Textron Inc. 28,173
417 Thermo Electron Corp. (a) 14,256
151 Timken Co. 4,653
1,420 Tyco International Limited 89,460
555 United Technologies Corp. 51,337
------------
622,727
------------
Media & Broadcasting (3.2%)
1,756 CBS Corp. 55,753
302 Clear Channel Communications (a) 32,956
922 Comcast Corp. Class A 37,428
217 Dow Jones & Co. Inc. 12,098
677 Gannett Inc. 48,109
171 King World Productions Inc. (a) 4,361
194 Knight Ridder Inc. 10,682
248 McGraw Hill Companies Inc. 20,228
131 Meredith Corp. 6,149
217 New York Times Co. 17,197
687 Nextel Communiations (a) 17,089
407 Omnicom Group 20,299
1,238 Tele Communications Inc. Class A (a) 47,586
1,668 The Walt Disney Company 175,244
296 Tibune Co. 20,369
1,457 Time Warner Inc. 124,482
202 Times Mirror Co. 12,701
855 Viacom Inc. (a) 49,804
------------
712,535
------------
Mining & Metals (.7%)
539 Alcan Aluminum Limited 14,890
497 Allegheny Teledyne 11,369
409 Aluminum Company of America 26,968
216 Armco Inc. (a) 1,377
81 Asarco Inc. 1,802
919 Barrick Gold Corp. 17,633
559 Battle Mountain Gold Co. 3,319
300 Bethlehem Steel Corp. (a) 3,731
237 Cyprus Amax Minerals Co. 3,140
461 Freeport-MCM Copper Gold 7,001
493 Homestake Mining Co. 5,115
409 Inco Limited 5,573
148 Inland Steel Industries Inc. 4,172
363 Newmont Mining Corp. 8,576
201 Nucor Corporation 9,246
142 Phelps Dodge Corp. 8,121
578 Placer Dome Inc. 6,792
173 Reynolds Metals Co. 9,677
197 USX-US Steel Group 6,501
218 Worthington Industries Inc. 3,284
------------
158,287
------------
</TABLE>
9 -------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
Oil, Gas, & Other Energy (7.9%)
<C> <S> <C>
208 Amerada Hess Corporation $ 11,297
2,321 Amoco Corp. 96,612
145 Anadarko Petroleum Corp. 9,742
231 Apache Corp. 7,277
175 Ashland Inc. 9,034
766 Atlantic Richfield Inc. 59,844
397 Baker Hughes Inc. 13,721
418 Burlington Resources Inc. 18,000
1,597 Chevron Corporation 132,651
262 Coastal Corp. 18,291
204 Columbia Energy Group 11,348
216 Consolidated Natural Gas 12,717
425 Dresser Industries Inc. 18,727
41 Eastern Enterprises 1,758
785 Enron Corp. 42,439
5,909 Exxon Corporation 421,386
633 Halliburton Co. 28,208
150 Helmerich & Payne Inc. 3,338
120 Kerr McGee Corp. 6,945
1,907 Mobil Corp. 146,124
122 Nicor Inc. 4,895
912 Occidental Pete Corp. 24,624
62 Oneok Inc. 2,472
261 Oryx Energy Company (a) 5,775
120 Pennzoil Company 6,075
120 Peoples Energy Corp. 4,635
661 Phillips Pete Co. 31,852
198 Rowan Companies Inc. (a) 3,849
5,178 Royal Dutch Petroleum Company 283,819
1,224 Schlumberger Limited 83,614
517 Sempra Energy (a) 14,339
268 Sonat Inc. 10,352
217 Sun Inc. 8,422
1,295 Texaco Inc. 77,295
582 Union Pacific Resources Group Inc. 10,221
577 Unocal Corp. 20,628
686 USX Marathon Group 23,538
134 Western Atlas Inc. (a) 11,373
1,039 Williams Companies Inc. 35,066
------------
1,732,303
------------
Pharmaceuticals (.2%)
611 Amgen Inc. (a) 39,944
------------
Retailers (5.6%)
625 Albertsons Inc. 32,383
680 American Stores Co. 16,448
362 Autozone Inc. (a) 11,561
222 Circuit City Stores-Carmax 10,406
264 Consolidated Stores (a) 9,570
509 Costco Companies Inc. (a) 32,099
922 CVS Corp. 35,900
1,047 Dayton Hudson Corp. 50,780
271 Dillards Inc. 11,230
494 Federated Department Stores (a) 26,583
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
943 GAP Inc. $ 58,112
145 Giant Food Inc. 6,244
126 Great Atlantic & Pacific Tea Inc. 4,166
166 Harcourt General Inc. 9,877
1,801 Home Depot Inc. 149,596
634 JC Penney Inc. 45,846
1,199 K-Mart Corp. (a) 23,081
644 Kroger Co. (a) 27,612
553 Limited Inc. 18,318
127 Longs Drug Stores Inc. 3,667
828 Lowes Companies Inc. 33,586
552 May Department Stores Co. 36,156
98 Mercantile Stores Inc. 7,736
179 Nordstrom Inc. 13,828
177 Pep Boys Manny Moe & Jack 3,352
608 Rite Aid Corp. 22,838
933 Sears Roebuck & Co. 56,971
410 Sherwin Williams Co. 13,581
231 Tandy Corp. 12,257
752 TJX Companies Inc. 18,142
660 Toys R Us Inc. (a) 15,551
320 Venator Group Inc. (a) 6,120
5,436 Wal-Mart Stores Inc. 330,237
1,193 Walgreen Co. 49,286
362 Winn Dixie Stores Inc. 18,530
------------
1,221,650
------------
Telecom & Telecom Equipment (9.1%)
1,410 Airtouch Communications Inc. (a) 82,397
435 Alltel Corporation 20,228
2,651 Ameritech Corp. 118,964
205 Andrew Corp. (a) 3,703
3,939 AT&T Corp. 225,015
3,782 Bell Atlantic Corp. 172,554
2,386 Bellsouth Corp. 160,160
311 DSC Communications Corp. (a) 9,330
403 Frontier Corp. 12,695
345 General Instrument Corp. (a) 9,380
2,342 GTE Corp. 130,274
209 Harris Corp. 9,340
3,159 Lucent Technologies Inc. 262,789
1,779 MCI Communications Corporation 103,404
1,487 MediaOne Group (a) 65,335
1,427 Motorola Inc. 75,007
1,247 Northern Telecom Limited 70,767
4,457 SBC Communications 178,280
183 Scientific Atlanta Inc. 4,644
1,058 Sprint Corp. 74,589
427 Tellabs Inc. (a) 30,584
1,228 U.S. West Inc. 57,716
2,506 Worldcom Inc. (a) 121,384
------------
1,998,539
------------
Textiles & Clothing (.3%)
171 Fruit of the Loom Inc. (a) 5,675
158 Liz Claiborne Inc. 8,256
</TABLE>
- ---------
10
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
690 Nike Inc. $ 33,594
<C> <S> <C>
137 Reebok International Limited (a) 3,793
73 Russell Corp. 2,204
40 Springs Industries Inc. 1,845
284 VF Corp. 14,626
------------
69,993
------------
Tobacco (1.2%)
408 Fortune Brands Inc. 15,683
5,902 Philip Morris Companies Inc. 232,391
443 UST Inc. 11,961
------------
260,035
------------
Transportation (.5%)
377 Burlington North Santa Fe 37,017
526 CSX Corp 23,933
903 Norfolk Southern Corp. 26,921
178 Ryder System Inc. 5,618
594 Union Pacific Corp. 26,210
------------
119,699
------------
Utilities & Energy (2.4%)
364 Ameren Corporation 14,469
444 American Electric Power Co. 20,147
345 Baltimore Gas & Electric Co. 10,717
365 Carolina Power & Light Co. 15,832
534 Central & Southwest Corp. 14,351
365 Cinergy Corp. 12,775
554 Consolidated Edison Inc. 25,519
468 Dominion Resources Inc. 19,071
340 DTE Energy Co. 13,728
894 Duke Energy Corp. 52,970
887 Edison International 26,222
622 Entergy Corp. 17,883
570 Firstenergy Corp. 17,528
428 FPL Group Inc. 26,964
341 GPU Inc. 12,894
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
745 Houston Industries Inc. $ 23,002
338 Niagara Mohawk Power Corp. (a) 5,049
348 Northern States Power Co. 9,962
702 Pacificorp 15,883
519 Peco Energy Co. 15,148
910 PG&E Corp. 28,722
431 PP&L Resources Inc. 9,778
548 Public Service Enterprise Group 18,872
1,693 Southern Co. 46,875
622 Texas Utilities Co. Holding Co. 25,891
517 Unicom Corp. 18,126
------------
518,378
------------
Total common stocks
(cost $18,887,118) 21,643,038
------------
<CAPTION>
Principal
amount
- ----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (2.4%)
$ 541,000 U.S. Treasury Bills, 4.940% to 5.070%,
due July, 1998 to September, 1998
(cost $536,051) 536,023
------------
TOTAL INVESTMENTS (101.0%)
(cost $19,423,169) 22,179,061
------------
LIABILITIES, LESS CASH AND OTHER ASSETS (-1.0%)
(228,940)
------------
NET ASSETS (100.0%) $ 21,950,121
------------
------------
</TABLE>
Notes:
(a) Non-income producing security.
At June 30, 1998, net unrealized appreciation of $2,755,892 consisted of gross
unrealized appreciation of $3,036,328 and gross unrealized depreciation of
$280,436 based on cost of $19,423,169 for federal income tax purposes.
See accompanying notes to financial statements.
11-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (99.2%)
Consumer & Marketing (.3%)
600 Alberto-Culver Company $ 17,400
800 Arvin Industries 29,050
1,400 Jostens Inc. 33,775
300 Kenneth Cole Productions Class A (a) 7,762
100 Mine Safety Appliances Company 7,500
200 Syms Corp. (a) 2,850
400 Talbots Inc. 10,475
------------
108,812
------------
Consumer Discretionary (18.6%)
300 Abacus Direct Corp. (a) 15,581
1,900 Abercrombie & Fitch Co. (a) 83,600
600 ABM Industries Inc. 16,725
1,900 Acclaim Entertainment Inc. (a) 11,281
300 Ackerley Group Inc. 6,300
2,100 Acnielsen Corp. (a) 53,025
500 Action Performance Company Inc. (a) 16,094
600 Activision Inc. (a) 6,187
200 Administaff Inc. (a) 9,225
800 Advo Inc. (a) 22,550
500 Alternative Resources Corp. (a) 6,187
400 Amazon.com Inc. (a) 39,900
200 AMC Entertainment Inc. (a) 3,612
400 Amerco (a) 11,775
800 American Business Information Class B
(a) 12,800
1,500 American Management Systems Inc. (a) 44,906
2,000 American Media Inc. (a) 13,250
400 American Safety Razor Co. (a) 5,850
800 American Tower Systems (a) 19,950
800 Ames Department Stores Inc. (a) 21,050
200 Anchor Gaming (a) 15,525
900 AnnTaylor Stores Corp. (a) 19,069
700 Apac Teleservices Inc. (a) 4,091
1,000 Apple South Inc. 13,062
1,100 Applebees International Inc. 24,612
420 Applied Graphics Techologies Inc. (a) 19,215
500 Arron Rents Inc. 10,000
1,100 Ascent Entertainment Group Inc. (a) 12,237
300 AT Cross Co. Class A 4,462
600 Authentic Fitness Corp. 9,487
300 Aviation Sales Co. (a) 11,887
2,100 Aztar Corp. (a) 14,306
100 Bacou USA Inc. (a) 2,081
1,100 Ball Corp. 44,206
500 Bassett Furniture Industry Inc. 14,094
100 Berlitz International Inc. (a) 2,700
2,500 Best Buy Inc. (a) 90,312
300 Bet Holdings Inc. (a) 18,881
600 Big Flower Holdings Inc. (a) 18,000
1,400 BJ's Wholesale Club Inc. (a) 56,875
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
1,500 Bob Evans Farms Inc. $ 31,781
400 Borg Warner Secondary Corp. (a) 9,050
700 Bowne & Company Inc. 31,500
1,700 Boyd Gaming Corp. (a) 9,775
400 BRC Holdings Inc. (a) 7,675
1,900 Brightpoint Inc. (a) 27,550
2,400 Brinker International Inc. (a) 46,200
1,600 Bristol Hotel Co. (a) 39,200
600 Brown Group Inc. 11,925
200 Brylane Inc. (a) 9,200
300 BT Office Products International Inc.
(a) 4,050
300 Buckle Inc. (a) 8,850
800 Budget Group Inc. (a) 25,550
1,600 Buffets Inc. (a) 25,100
700 Burlington Coat Factory 15,750
300 Bush Industry Inc. 6,525
900 Capstar Hotel Co. (a) 25,200
400 Caribiner International Inc. (a) 7,000
300 Carmike Cinemas Inc. (a) 8,081
1,800 Caseys General Stores Inc. 29,812
800 Cash America International Inc. 12,200
700 Catalina Marketing Corp. (a) 36,356
400 CDI Corp. (a) 10,700
1,100 Central Garden & Pet Co. (a) 34,237
300 Central Parking Corp. 13,650
4,200 Charming Shoppes Inc. (a) 19,950
1,600 Checkfree Holdings Corp. (a) 47,100
600 Cheesecake Factory Inc. (a) 13,575
1,700 Choice Hotels International Inc. (a) 23,056
600 Cidco Inc. (a) 2,775
500 Circuit City Stores-Carmax (a) 5,094
1,700 CKE Restaurants Inc. 70,125
200 CKS Group Inc. (a) 3,600
1,600 Claire's Stores Inc. 32,800
900 Clarcor Inc. 18,900
300 Claremont Technology Group Inc. (a) 8,044
300 Cnet Inc. (a) 20,475
500 Coinmach Laundry Corp. (a) 11,812
500 Cole National Corp. (a) 20,000
400 Coleman Inc. (a) 4,625
500 Commercial Intertech Corp. 9,062
400 Computer Learning Centers Inc. (a) 9,950
200 Consolidated Cigar Holdings Inc. (a) 2,450
300 Consolidated Graphics Inc. (a) 17,700
700 Consolidated Products Inc. (a) 14,787
1,000 Converse Inc. (a) 5,500
1,300 Adolph Coors Co. Class B 44,200
300 Copart Inc. (a) 6,937
300 Cost Plus Inc. (a) 8,925
300 Cox Radio Inc. (a) 12,975
500 CPI Corp. 11,906
200 Cross-Continent Auto Retailers Inc. (a) 1,387
</TABLE>
- ---------
12
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
200 CSS Industry Inc. (a) $ 6,550
<C> <S> <C>
700 Cylink Corp. (a) 8,400
400 Daisytek International Corp. (a) 10,175
400 Dames & Moore Group Inc. 5,150
200 Data Processing Resource Corp. (a) 6,212
400 Day Runner Inc. (a) 10,075
133 Del Labs Inc. 2,893
100 Delia's Inc. (a) 1,562
700 Department 56 Inc. (a) 24,850
2,000 Devry Inc. (a) 43,875
300 Discount Auto Parts Inc. (a) 7,800
400 Donna Karan International Inc. (a) 5,875
100 Dover Downs Entertainment Inc. 3,100
600 Dress Barn Inc. (a) 14,925
800 Eagle Hardware Garden (a) 18,500
300 Educational Management Corp. (a) 9,862
800 Einstein/Noah Bagel Corp. (a) 3,700
300 Emmis Broadcasting Corp. (a) 14,344
1,300 Employee Solutions Inc. (a) 4,956
600 Enesco Group Inc. 18,450
300 Equity Corporation International (a) 7,200
1,000 Ethan Allen Interiors Inc. 49,937
600 Fabri Centers America Inc. Class A (a) 16,425
681 Fairchild Corp. (a) 13,748
1,600 Fairfield Communities Inc. (a) 30,700
550 Family Golf Centers Inc. (a) 13,922
1,700 Fedders Corp. 11,369
400 Fine Host Corp. (a) 875
1,700 Fingerhut Companies Inc. 56,100
600 Finish Line Inc. (a) 16,875
600 Firearms Training System Inc. (a) 1,500
1,400 First Brands Corp. 35,875
1,200 Florida Panthers Holdings Inc. (a) 23,625
1,400 Foodmaker Inc. (a) 23,625
1,000 Footstar Inc. (a) 48,000
300 Fossil Inc. (a) 7,462
900 Franklin Covey Co. (a) 17,325
400 Friedmans Inc. Class A (a) 6,625
1,900 Furniture Brands International Inc. (a) 53,319
700 G & K Services Inc. Class A 30,537
300 Gadzooks Inc. (a) 8,269
600 Galoob Toys Inc. (a) 6,000
600 Garden Ridge Corp. (a) 11,625
200 GC Companies Inc. (a) 10,375
1,200 Gencorp Inc. 30,300
900 Genesco Inc. (a) 14,681
3,500 Geotek Communications (a) 547
600 Gibson Greetings Inc. (a) 15,000
500 Global Directmail Corp. (a) 6,312
800 Global Industrial Technologies Inc. (a) 11,500
1,200 Golden Books Family Entertainment Inc.
(a) 4,613
200 Goody's Family Clothing Inc. (a) 10,975
1,100 Grand Casinos Inc. (a) 18,425
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
600 Great Atlantic & Pacific Tea Inc. $ 19,837
1,200 Griffon Corp. (a) 15,375
700 Guess Inc. (a) 3,456
500 Guitar Center Management Inc. (a) 15,062
800 Gulford Mills Inc. 16,000
900 Gymboree Corp. (a) 13,641
800 Ha-Lo Industry Inc. (a) 24,900
800 Hancock Fabrics Inc. 10,000
1,300 Handleman Co. (a) 14,950
700 Harman International Industry Inc. 26,950
1,000 Hartmarx Corp (a) 7,562
900 Heftel Broadcasting Corp. Class A (a) 40,275
2,100 Heilig Meyers Co. 25,856
400 Herbalife International Inc. 9,850
1,100 Hollywood Entertainment Corp. (a) 14,919
700 Hollywood Park Inc. (a) 8,837
800 Homestead Village Properties Inc. (a) 9,500
1,200 Host Marriott Service Corp. (a) 17,475
1,100 Houghton Mifflin Co. 34,925
400 Huffy Corp. 7,250
300 IHOP Corp. (a) 12,412
500 Inacom Corp. (a) 15,875
900 Innkeepers USA Trust 11,362
200 Insilco Corp. (a) 8,875
1,400 Interim Services Inc. (a) 44,975
432 International Technology Corp. (a) 4,104
400 Iron Mountain Inc. (a) 17,900
200 ITT Educational Services Inc. (a) 6,450
1,900 Jacor Communications Inc. (a) 112,100
1,100 John H Harland Co. 18,631
500 John Wiley & Sons Inc. Class A 30,437
1,700 Journal Register Co. (a) 28,475
800 Just For Feet Inc. (a) 22,800
600 Justin Industries Inc. 9,675
500 K2 Inc. 8,812
800 Kaman Corp. Class A 15,225
800 Kellwood Co. 28,600
600 Kelly Services Inc. Class A 21,225
144 Kimco Realty Corp. 3,906
400 Kimco Realty Corp. Preferred Class B 16,400
600 La Z Boy Inc. 33,900
8,480 Laidlaw Environmental Services Inc. (a) 30,740
750 Lamar Advertising Co. (a) 26,906
900 Landry's Seafood Restaurants (a) 16,284
500 Lands End Inc. (a) 15,812
400 Learning Tree International Inc. (a) 8,050
600 Libbey Inc. 22,987
1,000 Linens n Things Inc. (a) 30,562
600 Lo-Jack Corp. (a) 7,462
1,300 Lone Star Steakhouse Saloon (a) 17,956
1,100 Longs Drug Stores Inc. 31,762
800 Luby's Cafeterias Inc. 14,050
600 Lycos Inc. (a) 45,225
</TABLE>
13-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
1,400 Mail-Well Inc. (a) $ 30,362
<C> <S> <C>
2,100 Malibu Entertainment Worldwide Inc. (a) 3,675
700 Marcus Corp. 12,512
900 Marvel Entertainment Group Inc. (a) 252
400 May & Speh Inc. (a) 7,950
700 McClatchy Newspapers Inc. 24,237
400 Media General Inc. Class A 19,500
400 Memberworks Inc. (a) 12,900
750 Mens Wearhouse Inc. (a) 24,750
500 Merrill Corp. 11,031
1,000 Metamor Worldwide Inc. (a) 35,187
300 Metro Networks Inc. (a) 12,937
1,600 Metromedia International Group Inc. (a) 19,100
300 Metzler Group Inc. (a) 10,987
900 Michaels Stores Inc. (a) 31,753
1,200 Micro Warehouse Inc. (a) 18,600
1,938 Midway Games Inc. (a) 30,281
300 Mikasa Inc. 3,825
400 Morrison Health Care Inc. 7,600
1,500 National Media Corp. (a) 1,687
200 National Preston Industries Inc. 7,787
1,300 Nautica Enterprises Inc. (a) 34,856
200 NCO Group Inc. (a) 4,400
400 Nelson Thomas Inc. 5,350
400 New England Business Services Inc. 12,900
700 NFO Worldwide Inc. (a) 12,469
500 Norrell Corp. 9,969
400 North Face Inc. (a) 9,600
300 NPC International Inc. (a) 3,675
400 Nu Skin Asia Inc. (a) 7,800
500 O'Sullivan Industrial Holdings Inc. (a) 7,000
700 Oakley Inc. (a) 9,362
1,200 Object Design Inc. (a) 7,200
1,800 Ogden Corp. 49,837
400 On Assignment Inc. (a) 13,975
400 On Command Corp. (a) 5,550
500 Oneida Ltd. 15,312
300 Oshkosh B'Gosh Inc. Class A 13,350
2,250 Outdoor Systems Inc. (a) 63,000
200 Oxford Industries Inc. 6,987
750 Pacific Sunwear California Inc. (a) 26,250
33 Panavision Inc. (a) 866
700 Papa Johns International Inc. (a) 27,606
700 Paragon Trade Brands (a) 2,144
400 Paul Harris Stores Inc. (a) 5,300
700 Paxson Communications Corp. (a) 8,487
200 Pennsylvania National Gaming Inc. (a) 1,512
200 Penske Motorsports Inc. (a) 5,837
1,200 Personnel Group America Inc. (a) 24,000
700 Petco Animal Supplies (a) 13,956
800 Phillips Van Heusen Corp. 11,800
2,400 Pier 1 Imports Inc. 57,300
200 Pillowtex Corp. 8,025
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
300 Pinkertons Inc. (a) $ 6,225
300 Pixar Inc. (a) 18,112
600 Plantronics Inc. (a) 30,900
600 Playboy Enterprises Inc. (a) 10,650
800 Pre-Paid Legal Services Inc. (a) 25,250
300 Precision Response Corp. (a) 2,400
400 Premier Packages Inc. (a) 26,650
200 Primadonna Resorts Inc. (a) 2,869
1,800 Prime Hospitality Corp. (a) 31,387
2,800 Proffitts Inc. (a) 113,050
400 Pulitzer Publishing Co. 35,700
300 QRSI Corp. (a) 11,287
500 Quiksilver Inc. (a) 9,969
500 Quintel Entertainment Inc. (a) 1,937
800 Rainforest Cafe Inc. (a) 11,100
300 Rare Hospitality International (a) 4,406
1,000 Red Roof Inns Inc. (a) 16,937
600 Regis Corp. 17,737
500 Rental Service Corp. (a) 16,812
500 Renters Choice Inc. (a) 14,187
700 Rio Hotel & Casino Inc. (a) 13,212
700 Rockshox Inc. (a) 2,800
700 Rollins Inc. 14,350
1,267 Romac International Inc. (a) 38,485
1,200 Royal Appliance Manufacturing Co. (a) 7,500
1,000 Ruby Tuesday Inc. 15,500
500 Rural/Metro Corp. (a) 6,500
400 Russ Berrie & Co. 10,000
1,800 Ryans Family Steak House Inc. (a) 18,450
375 Saga Communications (a) 5,250
291 Samsonite Corp. (a) 3,146
500 Sbarro Inc. (a) 13,562
500 Scholastic Corp. (a) 19,937
300 Scientific Games Holdings Corp. (a) 6,900
600 Seattle Filmworks Inc. (a) 4,631
300 Sequa Corporation Class A (a) 20,025
4,000 Service Merchandise Inc. (a) 6,250
300 SFX Entertainment Inc. (a) 13,762
1,900 Shoneys Inc. (a) 6,650
500 Shopko Stores Inc. (a) 17,000
500 Showbiz Pizza Time (a) 20,156
600 Signature Resorts Inc. (a) 9,900
800 Sinclair Broadcasting Group Inc. (a) 23,000
2,000 Sitel Corp. (a) 13,250
700 Snyder Communications Inc. (a) 30,800
700 Sodak Gaming Inc. (a) 4,375
600 Sonic Corp. (a) 13,425
400 Speedway Motorsports Inc. (a) 10,225
900 Spelling Entertainment Group Inc. (a) 8,437
1,000 Spiegel Inc. Class A (a) 7,187
1,100 Sports Authority Inc. (a) 16,431
500 Springs Industries Inc. 23,062
600 St. Johns Knits Inc. 23,175
</TABLE>
- ---------
14
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
500 Staffmark Inc. (a) $ 18,312
<C> <S> <C>
1,000 Stage Stores Inc. (a) 45,250
700 Station Casinos Inc. (a) 10,281
700 Stein Mart Inc. (a) 9,450
200 Strayer Education Inc. 7,250
1,700 Stride Rite Corp. 25,606
700 Sturm Ruger & Company Inc. 11,725
300 Suburban Lodges America Inc. (a) 4,537
600 Sunburst Hospitality Corp. (a) 4,162
2,100 Sunglass Hut International Inc. (a) 23,231
800 Superior Services Inc. (a) 24,050
1,050 Sylvan Learning Systems Inc. (a) 34,387
900 Telespectrum Worldwide (a) 7,875
700 Thermolase Corp. (a) 5,075
200 Timerland Co. (a) 14,387
300 TMP Worldwide Inc. (a) 10,462
2,000 Topps Inc. (a) 6,188
500 Toro Co. 17,125
400 Toy Biz Inc. (a) 3,700
600 Triarc Companies Inc. (a) 13,162
1,300 True North Communications Inc. 38,025
900 Trump Hotels & Casino Resort (a) 6,356
1,400 Tultex Corp. (a) 3,412
300 Ugly Duckling Corp. (a) 2,906
300 Unifirst Corp. 7,500
500 United Auto Group Inc. (a) 10,937
200 United National Foods Inc. (a) 5,700
1,687 United States Filter Corp. (a) 47,341
600 United Stationers Inc. (a) 38,850
200 United Television Inc. 22,900
400 United Video Satellite Class A (a) 15,850
300 Unitog Co. 6,600
300 Urban Outfitters Inc. (a) 5,475
450 USA Network (a) 11,306
1,000 Vail Resorts Inc. (a) 26,625
300 Value City Department Stores Inc. (a) 6,300
700 Veterinary Centers of America Inc. (a) 13,169
100 Vincam Group Inc. (a) 1,962
200 Vistana Inc. (a) 3,675
300 Volt Information Services Inc. (a) 8,137
500 Wackenhut Corp. 11,312
400 Wackenhut Corrections Corp. (a) 9,350
1,300 Walter Industries Inc. (a) 24,619
500 WD-40 Co. 13,562
300 West Marine Inc. (a) 5,400
600 West Teleservices Corp. (a) 7,275
900 Westwood One Inc. (a) 22,697
400 Wet Seal Inc. Class A (a) 12,800
1,400 Williams Sonoma Inc. (a) 44,537
400 Wilmar Industry Inc. (a) 10,200
700 Windmere-Durable Holdings (a) 25,069
1,100 WMS Industry Inc. (a) 4,606
1,400 World Color Press Inc. (a) 49,000
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
400 Young Broadcasting Inc. Class A (a) $ 26,000
1,300 Zale Corp. (a) 41,356
1,100 Zenith Electrics Corp. (a) 330
------------
6,225,892
------------
Consumer Staples (2.2%)
200 99 Cents Only Stores (a) 8,300
200 Block Drug Inc. 7,600
500 Boston Beer Inc. (a) 6,375
200 Bush Boake Allen Inc. (a) 5,862
600 Canadaigua Brands Inc. (a) 29,512
600 Church & Dwight Inc. 19,425
100 Coca Cola Bottling Co. 6,612
1,500 Dimon Inc. 16,875
500 Dominicks Supermarkets Inc. (a) 22,281
800 Dreyers Grand Ice Cream Inc. 16,100
800 Earthgrains Co. 44,700
1,400 Fleming Companies Inc. 24,587
700 General Cigar Holdings Inc. (a) 6,912
300 Genovese Drug Stores Inc. Class A 5,887
1,300 Homebase Inc. (a) 10,319
200 Ingles Markets Inc. Class A 2,900
600 International Multifoods Corp. 16,500
800 JM Smucker Co. Class A 19,850
600 Lance Inc. 13,425
500 Michael Food Inc. 14,687
400 Nash Finch Co. 6,025
100 National Beverage Corp. (a) 1,087
500 Natures Sunshine Products Inc. 11,281
400 Performance Food Group Inc. (a) 7,950
100 Pilgrims Pride Corp. 2,000
1,200 Playtex Products Inc. (a) 19,125
1,200 Ralcorp Holdings Inc. (a) 22,650
1,700 Richfood Holdings Inc. 35,169
200 Riviana Foods Inc. 4,612
100 Robert Mondavi Corp. (a) 2,837
1,000 Ruddick Inc. 18,125
200 Sanderson Farms Inc. 2,950
600 Schweitzer-Mauduit International Inc. 17,400
400 Smart & Final Inc. 6,850
1,100 Smithfield Foods Inc. (a) 33,550
800 Suiza Foods Corp. (a) 47,750
800 Twinlab Corp. (a) 34,950
1,300 U.S. Foodservice (a) 45,581
2,000 Universal Foods Corp. 44,375
500 Valhi Inc. 5,219
1,000 Whole Foods Market Inc. (a) 60,500
300 Worthington Foods Inc. 6,281
------------
734,976
------------
Durable Products (6.7%)
200 ADE Corp. (a) 2,925
100 Advanced Energy Industries (a) 1,162
</TABLE>
15-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
200 AFC Cable Systems Inc. (a) $ 7,100
<C> <S> <C>
100 Ag Chemical Equipment Inc. (a) 2,212
300 Alamo Group Inc. 5,700
900 Allen Telecom Inc. (a) 10,462
400 Allied Products Corp. 8,475
3,800 Allied Waste Industries Inc. (a) 91,200
600 Alpine Group Inc. (a) 12,450
400 American Homestar Corp. (a) 9,575
1,200 Ametek Inc. 35,175
1,000 Antec Corp. (a) 23,187
1,000 Applied Power Inc. 34,375
1,200 Artesyn Technologies Inc. (a) 19,200
1,800 Aspect Telecommunications Co. (a) 49,275
400 Asyst Technology Corp. (a) 5,050
900 Baldor Electric Co. 21,937
700 Blount International Inc. 19,950
400 Brown & Sharpe Manafacturing Co. (a) 4,800
200 C&D Technologies Inc. 11,600
500 California Microwave Inc. (a) 8,750
300 Cascade Corp. 5,475
200 CFM Technologies Inc. (a) 2,900
1,700 Champion Enterprises Inc. (a) 49,725
300 Chart Industry Inc. 7,162
1,300 Cincinnati Milacron Inc. 31,606
1,200 Cognex Corp. (a) 22,200
400 Cohu Inc. 9,725
400 Columbus McKinnon Corp. 10,400
800 Credence Systems Corp. (a) 15,200
700 CTS Corp. 20,650
600 Cuno Inc. (a) 12,975
200 Curtiss Wright Corp. 7,837
1,000 Cymer Inc. (a) 16,125
500 Daniel Industry 9,500
300 Detroit Diesel Corp. (a) 6,469
800 Dionex Corp. (a) 21,100
1,400 Donaldson Inc. 33,075
1,200 DR Horton Inc. 25,050
300 DT Industries Inc. 7,275
300 Ducommun Inc. (a) 6,000
200 Dupont Photomasks Inc. (a) 6,900
400 Electro Scientific Industry (a) 12,625
600 Electroglas Inc. (a) 7,837
400 Essex International Inc. (a) 9,450
600 FEI Co. (a) 5,587
1,100 Fleetwood Enterprises Inc. 44,000
1,500 Flowerserve Corp. 36,937
500 Fluke Corp. 16,437
200 Franklin Electric Inc. 13,600
900 FSI International Inc. (a) 8,719
400 Gardner Denver Machinery Inc. (a) 11,050
200 General Binding 7,362
900 General Cable Corp. 25,987
1,000 General Datacomm Industry Inc. (a) 5,000
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
1,000 Genrad Inc. (a) $ 19,750
300 Gleason Corp. 8,437
700 Graco Inc. 24,412
600 Helix Technology Corp. 9,000
300 Hirsch International Corp. (a) 2,587
400 Holophane Corp. (a) 10,200
1,100 Idex Corp. 37,950
700 Inter-Tel Inc. 11,200
2,200 Interdigital Communications (a) 11,825
200 Intevac Inc. (a) 2,150
400 Itron Inc. (a) 5,100
1,600 JLG Industries Inc. 32,400
100 JPM Co. (a) 1,194
1,400 Kaufman & Broad Home Corp. 44,450
1,100 Kennametal Inc. 45,925
1,000 Kent Electrics Co. (a) 18,312
1,300 Kimball International Inc. Class B 23,562
400 Knoll Inc. (a) 11,800
600 Kuhlman Corp. 23,737
800 Kulicke & Soffa Industry Inc. (a) 13,600
1,600 Lennar Corp. 47,200
450 Lindsay Manufacturing Co. 12,206
300 LS Starrett Co. 11,850
900 Magnetek Inc. (a) 14,175
600 Manitowoc Inc. 24,187
500 Matthews International Corp. 12,281
600 Micros Systems Inc. (a) 19,856
300 Moog Inc. Class A (a) 11,456
600 MTS System Corp. 9,637
500 Nordson Corp. 23,500
300 NVR Inc. (a) 12,319
700 Oak Industries Inc. (a) 24,762
1,700 Oakwood Homes Corp. 51,000
600 OEA Inc. 9,600
500 Omniquip International Inc. 9,250
200 Optical Cable Corp. (a) 2,000
1,300 Orbital Sciences Corp. (a) 48,587
500 Palm Harbor Homes (a) 21,312
300 Perceptron Inc. (a) 3,600
1,500 Picturetel Corp. (a) 13,875
600 PRI Automation Inc. (a) 10,237
1,200 Pulte Corp. 35,850
800 Regal Beloit Corp. 22,800
300 Robbins & Myers Inc. 8,719
1,100 Robotic Vision Systems Inc. (a) 5,087
400 Rofin Sinar Technologies Inc. (a) 7,100
1,100 Roper Industries Inc. 28,737
500 Ryland Group Inc. 13,125
400 Scotsman Industries Inc. 11,100
600 Scott Technologies Inc. (a) 8,775
1,100 Silicon Valley Group Inc. (a) 17,669
400 Specialty Equipment Companies Inc. (a) 9,050
1,000 Standard Pacific Corp. 20,625
</TABLE>
- ---------
16
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
1,100 Stewart & Stevenson Services Inc. $ 19,800
<C> <S> <C>
350 Superior Telecom Inc. 14,569
900 Symmetricom Inc. (a) 5,400
500 Technitrol Inc. 19,969
300 Tennant Co. 13,275
400 Terex Corp. (a) 11,400
200 Thermedics Detection Inc. (a) 1,925
600 Thermedics Inc. (a) 7,425
500 Thermo Fibertek Inc. (a) 5,156
500 Thermo Terratech Inc. (a) 2,250
900 Toll Brothers Inc. (a) 25,819
400 Triumph Group Inc. (a) 16,800
300 Turbochef Inc. (a) 2,700
400 U.S. Home Corp. (a) 16,500
921 U.S. Office Products Co. (a) 17,959
700 Ultratech Stepper Inc. (a) 13,825
1,300 Uniphase Corp. (a) 81,616
300 Veeco Instruments Inc. (a) 7,462
1,100 Vicor Corp. (a) 15,262
1,000 Waters Corp. (a) 58,937
700 Watts Industries Inc. 14,612
1,000 Wireless Telecom Group Inc. (a) 3,812
400 Woodhead Industry Inc. 6,150
300 Woodward Governor Co. 9,262
500 X-Rite Inc. 6,844
300 Zygo Corp. (a) 4,444
------------
2,258,791
------------
Financial Services (25.0%)
800 Aames Financial Corp. 11,000
400 Acceptance Insurance (a) 9,825
100 Advent Software Inc. (a) 4,200
400 Albank Financial Corp. 28,225
300 Alexandria Real Estate Equities 8,981
700 Alfa Corp. 14,525
800 Allied Group Inc. 37,450
800 Amcore Financial Inc. 19,200
300 American Annuity Group Inc. 7,219
900 American General Hospitality Corp. 19,125
800 American Health Properties Inc. 20,000
600 American Heritage Life Investments 13,875
1,100 Americredit Corp. (a) 39,256
800 Amerin Corp. (a) 23,350
100 Ameritrade Holdings Corp. (a) 2,700
600 Amerus Life Holdings Inc. 19,425
500 AMLI Residential Properties 10,719
1,500 Amresco Inc. (a) 43,687
300 Anchor Bancorp Wisconsin Inc. 11,719
1,721 Apartment Investment & Management Co. 67,979
1,500 Arcadia Financial Limited (a) 11,344
2,200 Arden Realty Group Inc. 56,925
400 Area Bancshares Corp. 13,600
700 Argonaut Group Inc. 22,137
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
600 Arthur J. Gallagher & Co. $ 26,850
2,375 Associated Banc Corp. 89,359
400 Associated Estates Realty Corp. 7,475
900 Astoria Financial Corp. 48,150
2,152 Avalon Bay Communities Inc. 81,776
200 BA Merchant Services Inc. (a) 4,037
400 Baldwin & Lyons Inc. 9,300
100 Bancfirst Corp. 4,650
1,400 Bancorpsouth Inc. 29,400
800 Banctec Inc. (a) 18,500
375 Bank of Granite Corp. 11,812
700 Bank Plus Corp. (a) 8,575
1,000 Bank UTD Corp. 47,875
600 Bankatlantic Bancorp 7,725
600 Banknorth Group Inc. 22,200
400 Barra Inc. (a) 9,800
700 Bay View Capital Corp. 22,225
800 Bedford Property Investment Inc. 14,600
1,300 Berkshire Realty Inc. 15,194
1,200 Billing Information Concepts (a) 18,600
1,000 Bisys Group Inc. (a) 41,000
200 BOK Financial Corp. (a) 9,450
500 Boykin Lodging Co. 10,844
800 Bradley Real Estate Inc. 16,900
1,500 BRE Properties Inc. 39,094
400 Brenton Books Inc. 8,175
300 BSB Bancorp 9,075
400 BT Financial Corp. 10,600
800 Burham Pacific Properties Inc. 11,350
1,579 Camden PropertyTrust 46,975
150 Capital City Bank Group Inc. 4,706
100 Capital Factors Holdings Inc. (a) 1,762
400 Capital Re Corp. 28,650
300 Capitol Transamerica Corp. 6,169
2,200 Capstead Mortgage Corp. 18,425
800 Capstone Capital Corp. 18,400
500 CB Richard Ellis Services 16,719
800 CBL & Associate Properties Inc. 19,400
200 CBT Corp. 6,500
700 CCC Information Services Group (a) 11,550
600 Centerpoint Properties Trust 19,837
1,100 Century Business Services (a) 22,000
1,100 Charles E. Smith Residential Realty 35,200
300 Chartwell Re Corp. 8,831
1,100 Chateau Communities Inc. 31,625
500 Chelsea GCA Realty Inc. 20,000
400 Chemical Financial Corp. 17,075
500 Chittenden Corp. 17,500
600 Citizens Bancshares Inc. 19,800
800 Citizens Banking Corp. 26,900
200 Citizens Corp. 6,262
800 Cityscape Financial Corp. (a) 38
800 CMAC Inventory Corp. 49,200
</TABLE>
17-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
1,200 CNA Surety Corp. (a) $ 17,700
<C> <S> <C>
700 CNB Bancshares Inc. 33,600
1,300 Colonial Bancgroup Inc. 41,925
1,000 Colonial Properties Trust 31,000
700 Commerce Bancorp Inc. 40,950
700 Commerce Group Inc. 27,125
1,200 Commercial Federal Corp. 37,950
1,100 Commercial Net Lease Realty Inc. 17,806
600 Commonwealth Bancorp Inc. 13,762
300 Community Bank System Inc. 9,394
1,500 Community First Bankshares 39,281
300 Community Trust Bancorp Inc. 9,975
3,600 Cornerstone Properties Inc. 63,450
1,300 Cornerstone Realty Income Trust 14,869
500 Cort Business Services Corp. (a) 15,750
300 Corus Bankshares Inc. 12,075
900 Cousins Properties Inc. 26,887
300 CPB Inc. 5,625
1,200 Crawford & Co. Class B 22,500
800 Credit Acceptance Corp. (a) 6,800
1,700 Crimi Mae Inc. 23,587
1,200 Crown American Realty Trust 11,625
800 Cullen Frost Bankers Inc. 43,400
300 CVB Financial Corp. 7,275
500 Dain Rauscher Corp. 27,375
510 Delphi Financial Group Inc. (a) 28,719
100 Delta Financial Corp. (a) 1,837
900 Developers Diversified Realty 35,269
400 Dime Community Bancorp Inc. 11,100
1,200 Doral Financial Corp. 21,000
735 Downey Financial Corp. 24,025
1,700 Dynex Cap Inc. 18,912
1,200 E Trade Group Inc. (a) 27,525
600 Eastgroup Property Inc. 12,037
600 Eaton Vance Corp. 27,787
600 Electro Rent Corp. (a) 13,462
1,000 Enhance Financial Services Group Inc. 33,750
800 Envoy Corp. (a) 37,900
1,300 Equity Inns Inc. 17,144
500 Essex Property Trust Inc. 15,500
400 Everen Capital Corp. 11,200
400 EW Blanch Holdings Inc. 14,700
800 Excel Realty Trust Inc. 23,050
400 Executive Risk Inc. 29,500
400 F & M Bancorporation Inc. 16,700
700 F & M National Corp. 20,300
200 Factset Research Systems Inc. (a) 6,500
400 Fair Isaac & Co. Inc. 15,200
1,200 FBL Financial Group Inc. 30,750
1,400 Federal Realty Investment Trust 33,687
1,200 Felcor Suite Hotels Inc. 37,650
700 Fidelity National Financial Inc. 27,869
503 Fifth Third Bancorp 31,657
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
300 Financial Federal Corp. (a) $ 8,044
1,100 Financial Securities Assurance Holdings 64,625
600 First American Financial Corp. 54,000
400 First Citizens Bancshares Class A 40,025
600 First Colonial Bancorp Inc. 16,650
400 First Commerce Bancshares Class B 11,725
800 First Commonwealth Financial Corp. 22,600
600 First Federal Capital Corp. 10,762
1,200 First Financial Bancorp 31,050
300 First Financial Bankshares 12,300
200 First Financial Corp. 10,075
500 First Financial Holdings Inc. 11,875
360 First Industrial Corp. 9,405
1,300 First Industrial Realty Trust 41,356
600 First Midwest Bancorp 26,381
300 First Republic Bank of San Francisco (a) 10,837
400 First Savings Bank Washington Bancorp 10,100
1,173 First Source Bancorp Inc. 11,363
330 First Source Corporation 11,797
400 First United Bancshares Inc. 19,550
1,100 First Union Real Estate Equity &
Mortgage Investments 10,175
400 First Western Bancorp Inc. 11,775
600 Firstbank Illinois Co. 25,200
1,000 Firstbank San Juan Puerto Rico 26,000
400 FirstFed Financial Corp. (a) 20,800
250 FirstFederal Financial Services Corp. 7,281
1,000 FirstPlus Financial Group Inc. (a) 36,000
200 Flagstar Bancorp Inc. 4,875
625 FNB Corp. 20,859
800 Foremost Corp. of America 19,300
1,800 Franchise Financial Corp. America 46,687
1,000 Fremont General Corp. 54,187
1,100 Frontier Insurance Group Inc. 24,819
2,275 Fulton Financial Corp. 57,728
200 Fund American Enterprises Holdings 29,600
800 Gables Residential Trust 21,700
700 Gainsco Inc. 4,594
600 GBC Bancorp California 15,900
1,300 General Growth Property Inc. 48,587
300 Getty Realty Corp. 5,812
1,100 Glenborough Realty Trust Inc. 29,012
800 Glimcher Realty Trust 15,550
300 Grand Premier Financial Inc. 4,800
500 Great Lakes Reit Inc. 8,719
300 Guarantee Life Companies Inc. 6,562
600 Hambrecht & Quist Group Inc. (a) 21,787
300 Hamilton Bancorp Inc. (a) 10,809
300 Hancock Holding Co. 15,900
1,201 Harbor Florida Bankshares (a) 14,337
400 Harleysville Group Inc. 8,300
300 Harleysville National Corp. 12,750
300 Harris Financial Inc. 6,600
</TABLE>
- ---------
18
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
1,000 Hartford Life Inc. $ 56,937
<C> <S> <C>
1,400 HCC Insurance Holdings Inc. 30,800
1,100 Health Care Property Investments Inc. 39,669
900 Health Care REIT Inc. 22,950
700 Healthcare Realty Trust 19,075
400 Heritage Financial Services Inc. 13,750
600 HFNC Financial Corp. 6,750
500 Highlands Insurance Group Inc. (a) 9,250
2,100 Highwoods Properties Inc. 67,856
400 Hilb Rogal & Hamilton Co. 6,250
300 Home Properties New York Inc. 8,006
70 Horizon Group Properties Inc. (a) 462
1,400 Hospitality Properties Trust 44,975
1,050 HSB Group Inc. 56,175
800 Hubco Inc. 28,650
400 IBS Financial Corp. 7,600
1,000 IMC Mortgage Co. (a) 10,562
800 IMPAC Mortgage Holdings Inc. 12,450
1,200 Imperial Bancorp (a) 36,000
800 Imperial Credit Industries Inc. (a) 18,800
2,400 Indymac Mortgage Holdings Inc. 54,600
500 Interpool Inc. 7,219
300 Interwest Bancorp Inc. 13,012
100 Investment Technology Group (a) 2,750
200 Investors Financial Services Corp. 10,600
1,100 IRT Property Co. 12,100
600 Irvine Apartment Communities Inc. 17,362
400 Irwin Financial Corp. 11,625
400 Jack Henry & Associates Inc. 13,750
700 JDN Realty Corp. 22,312
700 Jefferies Group Inc. 28,700
900 John Alden Financial Corp. 19,800
200 John Nuveen Co. 7,937
600 JP Realty Inc. 14,137
300 JSB Financial Inc. 17,569
100 Kansas City Life Insurance Co. 9,100
1,900 Keystone Financial Inc. 70,300
800 Kilroy Realty Corp. 20,000
300 Klamath First Bancorp Inc. 5,719
800 Koger Equity Inc. 16,150
900 Legg Mason Inc. 51,806
400 Liberty Corp. 20,125
2,100 Liberty Property Trust 53,681
400 Life Re Corp. 32,800
900 Life USA Holdings Inc. 11,644
900 LNR Property Corp. 23,062
800 Long Beach Financial Corp. (a) 8,800
900 Long Island Bancorp Inc. 54,675
900 LTC Properties Inc. 16,762
1,000 Macerich Co. 29,312
2,000 Mack Cali Realty Corp. 68,750
600 MAF Bancorp Inc. 21,825
1,200 Magna Group 67,800
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
500 Mainstreet Bankgroup Inc. $ 14,750
800 Manufactured Home Communities Inc. 19,300
200 Markel Corp. (a) 35,600
700 McDonald & Co. Investments Inc. 22,969
400 McGrath Rentcorp 8,450
200 Meadowbrook Insurance Group Inc. 5,437
800 Medical Assurance Inc. (a) 22,200
300 Merchants New York Bancorp Inc. 11,100
5,700 Mercury Financial Co. (a) 741
1,100 Meridian Industrial Trust Inc. 25,300
1,500 Merry Land & Investments Inc. 31,594
100 Metris Companies Inc. 6,375
500 MGI Property Inc. 13,094
900 Mid Am Inc. 22,725
600 Mid America Apartment Communities Inc. 15,787
300 Mid America Bancorp 9,712
800 Mills Corp. 19,200
200 Mississippi Valley Bancshares Inc. 7,900
700 MMI Companies 16,187
900 Morgan Keegan Inc. 23,287
500 NAC Re Corp. 26,687
800 National Bancorp Alaska 24,700
400 National City Bancshares Inc. 16,100
400 National Golf Properties Inc. 12,025
800 National Health Investors Inc. 26,500
300 National Penn Bancshares Inc. 10,200
300 National Processing Inc. (a) 3,206
100 National Western Life Insurance Class A
(a) 12,100
200 Nationwide Financial Services Inc. 10,200
1,600 Nationwide Health Properties Inc. 38,200
400 NBT Bancorp Inc. 10,150
900 Nova Corp. (a) 32,175
200 Nymagic Inc. 5,475
600 Ocean Financial Corp. 11,475
700 Ocwen Asset Investment 11,594
900 Ocwen Financial Corp. (a) 24,187
1,000 Old National Bancorp 47,750
300 Omega Financial Corp. 10,837
700 Omega Healthcare Investments Inc. 24,587
1,200 One Valley Bancorp Inc. 43,650
400 Oriental Financial Group Inc. 14,750
1,000 Orion Capital Corp. 55,875
700 Pacific Gulf Properties Inc. 14,919
300 Park National Corp. 30,281
200 PEC Israel Economic Corp. (a) 4,775
1,000 Penncorp Financial Group Inc. 20,500
400 Pennsylvania Real Estate Investments 8,875
200 Pennsylvania Treaty American Corp. (a) 6,300
400 People First Corp. 14,000
3,200 Peoples Heritage Financial Group 75,600
600 PFF Bancorp Inc. (a) 11,175
200 Philadelphia Consumer Holding Corp. (a) 4,200
1,700 Phoenix Investment Partners Limited 14,769
</TABLE>
19-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
800 Pioneer Group Inc. $ 21,050
<C> <S> <C>
1,700 PMT Services Inc. (a) 43,244
400 Poe & Brown Inc. 14,875
1,200 Policy Management Systems (a) 47,100
1,400 Post Properties Inc. 53,900
1,300 Prentiss Properties Trust 31,606
900 Presidential Life Corp. 19,237
1,258 Prime Retail Inc. Class A 15,017
120 Prime Retail Inc. Class B 2,460
300 Profit Recovery Group International Inc.
(a) 8,381
840 Provident Bankshares Corp. 24,780
400 PXRE Corp. 12,000
500 Queens County Bancorp Inc. 21,812
1,350 Raymond James Financial Inc. 40,416
1,000 Realty Income Corp. 26,375
1,200 Reckson Associates Realty Corp. 28,350
500 Redwood Trust Inc. 8,781
900 Regency Realty Corp. 22,612
900 Reinsurance Group America Inc. 53,212
400 Reliance Bancorp Inc. 15,325
600 Republic Bancorp Inc. 11,325
500 Resource Bancshares Mortgage Group 9,312
700 RFS Hotel Investments Inc. 13,300
700 Riggs National Corp. 20,453
200 Rightchoice Managed Care Inc. (a) 2,537
600 Risk Capital Holdings Inc. (a) 14,962
375 RLI Corp. 15,258
1,900 Rollins Truck Leasing Corp. 23,512
1,600 Roslyn Bancorp Inc. 35,700
96 RSI (a) 318
400 S & T Bancorp Inc. 22,100
600 Santa Barbara Bancorp 17,250
300 Saul Centers Inc. 5,194
500 Scipe Holdings Inc. 16,937
700 Security Capital Atlantic Inc. 15,619
400 SEI Investments Co. 24,800
1,100 Selective Insurance Group Inc. 24,647
1,000 Shurgard Storage Centers Inc. 27,750
800 Silicon Valley Bancshares (a) 28,475
1,500 Sotherbys Holdings Inc. 33,562
300 Southern Pacific Funding Corp. (a) 4,706
800 Southwest Bancorporation (a) 15,050
5,657 Sovereign Bancorp Inc. 92,457
300 Sovran Self Storage Inc. 8,475
300 SPS Transactions Services Inc. (a) 9,412
200 St. Francis Capital Corp. 7,750
1,200 St. Paul Bancorp Inc. 27,113
200 State Auto Financial Corp. 6,375
750 Sterling Bancshares Inc. 11,812
600 Storage Trust Realty 14,025
1,000 Storage USA Inc. 35,000
200 Student Loan Corp. 9,412
100 Sumitomo Bank California 3,775
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
700 Summit Properties Inc. $ 13,256
600 Sun Communities Inc. 19,875
1,600 Sunstone Hotel Investments Inc. 21,300
800 Susquehanna Bancshares Inc. 29,900
300 Tanger Factory Outlet Centers 9,506
1,200 Taubam Centers Inc. 17,100
500 Texas Regional Bancshares Inc. 16,375
800 Thornburg Mortgage Asset Corp. 9,750
500 Town & Country Trust 8,281
600 TR Financial Corp. 25,125
400 Trans Financial Inc. 22,950
400 Trenwick Group Inc. 15,538
500 Triad Realty Inc. (a) 17,000
500 Triangle Bancorp Inc. 15,688
800 Trinet Corporation Realty Trust Inc. 27,200
600 Trust Company New Jersey City 16,200
800 Trustco Bank Corp. New York 21,000
2,400 Trustmark Corp. 52,650
700 U.S. Trust Corp. 53,375
600 UMB Financial Corp. 29,700
1,500 United Bankshares Inc. West Virginia 51,188
900 United Companies Financial Corp. 14,063
300 United Fire & Casualty Co. 11,756
300 Universal Health Realty 6,000
600 Urban Shopping Centers Inc. 18,900
200 USBancorp Inc. 15,463
900 UST Corp. 23,850
100 Value Line Inc. 3,825
500 Vermont Financial Services Corp. 13,719
500 Vesta Insurance Group Inc. 10,656
500 Walden Residential Properties Inc. 12,250
1,300 Washington Real Estate Investment 22,588
1,000 Webster Financial Corp. 33,250
700 Weeks Corp. 22,138
600 Wesbanco Inc. 16,125
500 West Coast Bancorp Oregon 12,313
1,500 Westamerica Bancorporation 48,188
300 Westcorp Inc. 4,125
600 Western Investment Real Estate Trust 8,213
1,600 Westernbank Puerto Rico 27,000
200 WFS Financial Inc. (a) 1,400
200 White River Corp. (a) 18,100
800 Whitney Holding Corp. 40,600
600 Winston Hotels Inc. 7,500
800 WR Berkley Corp. 32,050
400 WSFS Financial Corp. 8,200
600 Xtra Corp. 36,300
400 Zenith National Insurance Corp. 11,275
------------
8,366,508
------------
Health Care (9.5%)
800 ABR Information Services Inc. (a) 19,000
700 Access Health Inc. (a) 17,850
</TABLE>
- ---------
20
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
800 Acuson Corp. (a) $ 14,550
<C> <S> <C>
1,300 Acxiom Corp. (a) 32,419
700 ADAC Laboratories (a) 15,750
1,400 Advanced Tissue Sciences Inc. (a) 6,213
800 Affymetrix Inc. (a) 19,250
1,100 Agouron Pharmaceuticals Inc. (a) 33,344
400 Algos Pharmaceutical Corp. (a) 10,800
700 Alkermes Inc. (a) 12,513
1,500 Alliance Pharmaceutical Corp. (a) 6,281
500 Alpharma Inc. 11,000
600 Alternative Living Services Inc. (a) 16,200
400 American Homepatient Inc. (a) 7,650
1,100 American Oncology Resources Inc. (a) 13,441
900 Amerisource Health Corp. (a) 59,119
1,400 Amylin Pharmaceuticals Inc. (a) 5,294
300 Andrx Corp. (a) 11,025
200 Aphton Corp. (a) 3,325
300 Applied Analytical Industry Inc. (a) 4,313
2,000 Apria Healthcare Group Inc. (a) 13,375
500 Arrow International Inc. 13,719
2,300 Arterial Vascular Engineer Inc. (a) 82,225
500 ATL Ultrasound Inc. (a) 22,813
300 Atria Communities Inc. (a) 5,175
1,300 AXYS Pharmaceuticals Inc. (a) 9,263
1,000 Ballard Medical Products 18,000
300 Barr Labs Inc. (a) 11,925
533 Bindley Western Industry Inc. 17,589
300 Bio-Rad Laboratories Inc. (a) 9,188
1,800 Bio Technology General Corp. (a) 12,769
400 Biomatrix Inc. (a) 16,400
600 Cadus Pharmaceutical Corp. (a) 4,650
800 Cardiothoracic System Inc. (a) 4,050
300 Carematrix Corp. (a) 8,081
800 Carter Wallace Inc. 14,450
1,000 Cephalon Inc. (a) 7,875
900 Cerner Corp. (a) 25,481
800 Clintrials Research Inc. (a) 3,900
200 Closure Medical Corp. (a) 4,975
1,000 CNS Inc. (a) 4,656
1,100 Columbia Labs Inc. (a) 6,325
300 Compdent Corp. (a) 4,688
1,500 Concentra Managed Care (a) 39,000
500 Conmed Corp. (a) 11,500
500 Cooper Companies Inc. (a) 18,219
800 Cor Therapeutics Inc. (a) 11,100
2,100 Covance Inc. (a) 47,250
2,400 Coventry Health Care Inc. (a) 35,700
1,500 Creative Biomolecules Inc. (a) 7,219
500 Curative Health Services (a) 14,250
700 Cygnus Inc. (a) 7,306
2,300 Cytogen Corp. (a) 1,797
500 CYTYC Corp. (a) 8,156
500 Datascope Corp. (a) 13,281
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
400 Diagnostic Products $ 11,525
400 Emisphere Technologies (a) 4,825
700 Enzo Biochem Inc. (a) 9,363
300 Express Scripts Inc. (a) 24,188
1,600 Fisher Scientific International Inc. (a) 23,100
1,300 FPA Medical Management Inc. (a) 1,503
600 Fuisz Technologies Limited (a) 6,638
600 Geltex Pharmaceuticals Inc. (a) 11,175
3,100 Gensia Sicor Inc. (a) 12,400
1,100 Gilead Sciences Inc. (a) 35,269
1,700 Graham Field Health Products Inc. (a) 9,563
600 Guilford Pharmaceuticals Inc. (a) 10,575
800 Haemonetics Corp. (a) 12,800
400 HCIA Inc. (a) 5,150
400 Healthplan Services Corp. 7,000
500 Heartport Inc. (a) 3,281
500 Henry Schein Inc. (a) 23,063
400 Hologic Inc. (a) 7,275
800 Human Genome Sciences (a) 28,550
500 I-Stat Corp. (a) 5,625
2,600 ICN Pharmaceuticals Inc. 118,788
1,200 ICOS Corp. (a) 22,950
700 IDEC Pharmaceuticals Corp. (a) 16,494
1,200 IDEXX Labs Corp. (a) 29,850
200 IDX Systems Corp. (a) 9,213
3,100 Imatron Inc. (a) 8,525
1,200 Immunomedics Inc. (a) 5,325
800 Incyte Pharmaceuticals Inc. (a) 27,300
600 Inhale Therapeutic Systems (a) 14,850
1,600 Integrated Health Services Inc. 60,000
1,400 Interneuron Pharmaceuticals (a) 5,075
1,000 Invacare Corp. 25,625
1,000 ISIS Pharmaceuticals Inc. (a) 13,688
800 Jones Pharma Inc. 26,500
450 K V Pharmaceutical Co. Class B (a) 10,378
200 KOS Pharmaceuticals Inc. (a) 2,025
200 Lab Holdings Inc. 4,638
100 Labone Inc. 1,663
2,100 Laboratory Corp. American Holdings (a) 4,856
300 Landauer Inc. 8,963
400 Life Technologies Inc. 12,550
1,400 Ligand Pharmaceuticals Inc. (a) 18,025
1,800 Liposome Co. Inc. (a) 9,731
200 Lunar Corp. (a) 3,675
1,100 Magellan Health Services (a) 27,913
800 Mariner Health Group (a) 13,300
500 Marquette Medical Systems Inc. (a) 12,828
500 Martek Biosciences Corp. (a) 7,281
600 Maxicare Health Plans Inc. (a) 4,050
2,800 Medaphis Corporation (a) 16,800
900 MedImmune Inc. (a) 56,138
400 Medical Manager Corp. (a) 11,050
800 Medical Resources Inc. (a) 2,450
</TABLE>
21-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
700 Medicis Pharmaceutical Corp. (a) $ 25,550
<C> <S> <C>
30 Mediq Inc. Preferred (a) 203
800 Medquist Inc. (a) 23,100
900 Mentor Corp. 21,825
1,800 Mid Atlantic Medical Services Inc. (a) 20,700
1,000 Millennium Pharmaceuticals (a) 14,125
300 Minimed Inc. (a) 15,713
200 Miravant Medical Technologies (a) 4,419
300 Myriad Genetics Inc. (a) 4,388
1,500 NABI Inc. (a) 4,547
600 National Surgery Controls Inc. (a) 17,438
1,800 NBTY Inc. (a) 33,075
700 NCS Healthcare Inc. (a) 19,950
500 Neopath Inc. (a) 3,594
1,200 Neoprobe Corp. (a) 3,300
600 Neurex Corp. (a) 18,225
400 Neurogen Corp. (a) 7,100
1,700 Neuromedical Systems Inc. (a) 1,222
1,100 Nexstar Pharmaceuticals Inc. (a) 10,966
2,200 Novacare Corp. (a) 25,850
500 OEC-Medical Systems Inc. (a) 11,250
1,000 Organogenesis Inc. (a) 19,750
1,400 Orthodontic Controls America Inc. (a) 29,313
1,000 Owens & Minor Inc. 10,000
200 Oxigene Inc. (a) 2,438
1,200 Paracelsus Healthcare Corp. (a) 3,750
2,700 Paragon Health Network Inc. (a) 43,538
900 Parexel International Corp. (a) 32,738
600 Pathogenesis Corp. (a) 17,400
750 Patterson Dental Co. (a) 27,469
400 Pediatrix Medical Group (a) 14,875
200 Perclose Inc. (a) 5,650
2,400 Perrigo Co. (a) 24,150
600 Pharmaceutical Product Development Inc.
(a) 13,200
2,400 Pharmerica Inc. (a) 28,950
200 PHP Healthcare Corp. (a) 1,475
700 Phymatrix Corp. (a) 6,169
1,100 Physician Computer Network (a) 1,719
900 Physician Reliance Network (a) 10,294
1,400 Physicians Resource Group Inc. (a) 6,388
600 Physio-Control International Corp. (a) 15,788
400 Possis Medical Inc. (a) 5,000
500 Prime Medical Services Inc. (a) 4,688
600 Protein Design Labs (a) 14,456
2,575 PSS World Medical 37,659
900 Psychemedics Corp. 4,725
1,100 Quest Diagnostics Inc. (a) 24,063
900 Regeneron Pharmaceuticals (a) 8,297
1,000 Renal Care Group Inc. (a) 44,063
450 Res-Care Inc. (a) 8,297
1,068 Respironics Inc. (a) 16,621
1,200 Rexall Sundown Inc. (a) 42,300
900 Roberts Pharmaceutical Corp. (a) 20,700
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
300 Sabratek Corp. (a) $ 6,825
1,200 Safeskin Corp. (a) 49,350
600 Sangstat Medical Corp. (a) 18,825
1,400 Scios Inc. (a) 12,425
1,000 Sepracor Inc. (a) 41,500
1,200 Sequus Pharmaceuticals (a) 13,650
600 Serologicals Corp. (a) 19,350
900 Sierra Health Services Inc. (a) 22,669
900 Sola International Inc. (a) 29,419
200 Sonus Pharmaceuticals Inc. (a) 2,463
300 Spacelabs Medical Inc. (a) 5,025
400 Staar Surgical Co. (a) 6,225
1,500 Summit Technology Inc. (a) 8,156
1,500 Sun Healthcare Group Inc. (a) 21,938
100 Sunquest Information Inc. (a) 913
400 Sunrise Assisted Living Inc. (a) 13,750
600 Sunrise Medical Inc. (a) 9,000
200 Superior Consultant Holdings Co. (a) 8,625
600 Techne Corp. (a) 11,438
800 Theragenics Corp. (a) 20,850
600 Theratech Inc. (a) 6,075
700 Thermo Cardiosystems Inc. (a) 15,925
2,568 Total Renal Care Holdings Inc. (a) 88,596
600 Transition Systems Inc. (a) 6,375
700 Transkaryotic Therapies Inc. (a) 18,025
200 Trex Medical Corp. (a) 3,300
600 Triangle Pharmaceuticals Inc. (a) 8,925
1,500 Trigon Healthcare Inc. (a) 54,281
1,000 U.S. Bioscience Inc. (a) 8,188
300 United Wisconsin Services Inc. 8,513
900 Vertex Pharmaceuticals Inc. (a) 20,250
500 Vical Inc. (a) 8,469
400 VISX Inc. (a) 23,800
200 Vital Signs Inc. 3,650
500 Vitalink Pharmacy Services Inc. (a) 11,031
1,400 Vivus Inc. (a) 8,444
100 Wesley Jessen Visioncare Inc. (a) 2,313
500 West Inc. 14,156
1,200 Zila Inc. (a) 8,700
------------
3,194,927
------------
Machinery & Manufacturing (.3%)
800 Applied Industrial Technology Inc. 16,450
300 Nacco Industries Inc. 38,775
300 Osmonics Inc. (a) 3,600
1,300 Rohn Industries Inc. 6,094
200 Thermospectra Corp. (a) 2,550
800 U.S. Industries Inc. 19,800
------------
87,269
------------
Materials & Processes (8.7%)
1,300 A. Schulman Inc. 25,431
400 ABT Building Products Corp. 6,875
</TABLE>
- ---------
22
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
800 Acme Metals Inc. (a) $ 4,000
<C> <S> <C>
400 Advanced Lighting Technologies (a) 9,300
100 AEP Industries Inc. (a) 2,163
1,900 Alaska Steel Holding Corp. 33,963
735 Albany International Corp. 17,594
800 Albemarle Corp. 17,650
100 Alexanders Inc. (a) 8,900
300 Alltrista Corp. (a) 7,669
400 AM Castle & Co. 8,800
300 Amcast Industrial Corp. 5,588
1,000 Amcol International Corp. 12,063
400 American Business Products 8,200
1,000 American Pad & Paper Co. (a) 4,500
600 American Residential Services Inc. (a) 6,750
200 Ameron International Inc. 11,563
1,000 Apogee Enterprises Inc. 15,313
700 Aptargroup Inc. 43,531
400 Arqule Inc. (a) 5,175
200 Avatar Holdings Inc. (a) 5,575
1,100 Banta Corp. 33,963
600 Barnett Inc. (a) 12,150
900 Belden Inc. 27,563
1,000 Birmingham Steel Corp. 12,375
1,100 BMC Industry Inc. 9,625
700 Brady Wholesale Co. 19,469
600 Brush Wellman Inc. 12,338
1,000 Buckeye Technologies Inc. (a) 23,563
2,000 Burlington Industry Inc. (a) 28,125
200 Butler Manafacturing Co. 6,813
1,300 Calgon Carbon Corp. 12,919
700 Calmat Co. 15,400
800 Cambrex Corp. 21,000
900 Caraustar Industry Inc. 25,988
300 Carbide/Graphite Group Inc. (a) 8,344
1,000 Carlisle Companies Inc. 43,063
800 Carpenter Technology Corp. 40,200
500 Castle & Cooke Inc. (a) 9,500
400 Centex Construction Products 15,400
700 Century Aluminum Co. 10,325
450 Chase Industry Inc. (a) 8,888
300 Chemed Corp. 10,219
700 Chemfirst Inc. 17,675
700 Chesapeake Corp. 27,256
200 Citation Corp. (a) 4,000
400 Cleveland Cliffs Inc. 21,450
700 Coeur D'alene Mines Corp. (a) 4,725
2,300 Collins & Aikman Corp. (a) 17,106
500 Commercial Metals Co. 15,375
600 Commonwealth Industry Inc. 6,000
1,000 Cone Mills Corp. (a) 8,625
200 Culp Inc. 2,588
1,300 Dal-Tile International Inc. (a) 12,756
1,100 DeKalb Genetics Corp. 104,088
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
1,400 Delta & Pine Land Co. $ 62,300
400 Deltic Timber Corp. 10,025
900 Dexter Corp. 28,631
500 Elcor Corp. 12,625
450 Encore Wire Corp. (a) 7,256
200 Fab Industry Inc. 5,575
1,400 Ferro Corp. 35,438
500 Florida Rock Industry Inc. 14,594
500 Foamex International Inc. 8,719
200 Forest City Enterprises Class A 11,838
600 Furon Co. 10,875
400 Galey & Lord Inc. (a) 5,950
2,000 Gaylord Container Corp. (a) 15,375
400 General Chemical Group Inc. 11,100
800 Geon Co. 18,350
1,200 Georgia Gulf Corp. 27,375
1,100 Getchell Gold Corp. (a) 16,500
300 Giant Cement Holding Inc. (a) 8,588
100 Gibraltar Steel Corp. (a) 2,050
400 Granite Construction Inc. 12,250
500 Greif Brothers Corp. Class A 18,688
800 Grubb & Ellis Co. (a) 11,400
500 H.B. Fuller Company 27,719
300 Hach Co. 3,722
2,400 Hecla Mining Co. (a) 12,750
700 Hexcel Corp. (a) 15,838
600 Hughes Supply Inc. 21,975
300 Hunt Corp. 7,106
500 Imco Recycling Inc. 9,250
800 Insignia Financial Group Inc. (a) 19,600
1,600 Interface Inc. Class A 32,300
600 Intermet Corp. 10,875
600 Ionics Inc. (a) 22,125
800 J & L Specialty Steel 4,750
800 Jacobs Engineering Group Inc. (a) 25,700
600 Juno Lighting Inc. 14,175
900 Kaiser Aluminum Corp. (a) 8,606
1,200 Kaydon Corp. 42,375
300 Laearonal Inc. 7,163
200 Lawson Products Inc. 5,150
1,300 Lawter International 14,138
400 Layne Christensen Co. (a) 4,950
800 Lilly Industry Inc. 17,300
200 Liqui Box Corp. 9,475
400 Lone Star Industry Inc. 30,825
800 Lone Star Technologies Inc. (a) 12,200
1,800 Longview Fibre Co. 25,650
600 Lydall Inc. (a) 8,738
1,600 MA Hanna Co. 29,300
700 Macdermid Inc. 19,775
500 Material Sciences Corp. (a) 5,813
300 Maverick Tube Corp. (a) 3,488
200 Maxxam Inc. (a) 11,350
</TABLE>
23-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
200 McWhortor Technologies Inc. (a) $ 5,288
<C> <S> <C>
600 Medusa Corp. 37,650
100 Mestek Inc. (a) 2,138
800 Minerals Technologies Inc. 40,700
1,000 Mississippi Chemical Corp. 16,438
1,200 Mohawk Industries Inc. (a) 38,025
400 Morrison Knudsen Corp. (a) 5,625
1,400 Mueller Industries Inc. (a) 51,975
700 Mycogen Corp. (a) 16,822
700 National Steel Corp. 8,313
100 NCH Corp. 6,406
300 NCI Building Systems Inc. (a) 17,325
800 NL Industries Inc. 16,000
400 NN Ball & Roller Inc. 4,775
500 Nortek Inc. (a) 15,375
800 OM Group Inc. 33,000
800 Oregon Steel Mills Inc. 14,900
1,500 Paxar Corp. (a) 17,250
100 Penn Engineering & Mfg. Corp. Class A 2,050
900 PH Glatfelter Co. 14,231
1,100 Polymer Group Inc. (a) 12,788
500 Pope & Talbot Inc. 5,844
400 Price Enterprises Inc. 7,350
200 Puerto Rican Cement Inc. 9,450
500 Quanex Corp. 15,156
400 Reliance Steel & Aluminum Co. 15,450
300 Republic Group Inc. 6,300
500 RMI Titanium Co. (a) 11,375
1,200 Rock-Tenn Co. 15,075
200 Rouge Industries Inc. 2,550
200 Ryerson Tull Inc. (a) 4,100
700 Scotts Co. (a) 26,075
400 Service Experts Inc. (a) 13,800
300 Shaw Group Inc. (a) 7,800
200 Shiloh Industries Inc. (a) 4,050
750 Shorewood Packaging Corp. (a) 11,906
700 Silgan Holdings Inc. (a) 19,600
200 Simpson Manufacturing Company Inc. (a) 7,725
900 Southdown Inc. 64,238
400 Spartech Corp. 8,575
100 Special Metals Corp. (a) 1,400
400 SPS Technologies Inc. (a) 23,400
500 Standard Register Co. 17,688
400 Standex International Corp. 11,850
300 Stepan Co. 8,944
700 Stillwater Mining Co. (a) 18,988
300 Stone & Webster Inc. 11,888
700 Synetic Inc. (a) 39,900
300 Synthetic Industries Inc. (a) 4,369
300 Tejon Ranch Co. 7,950
1,600 Terra Industries Inc. 14,400
800 Tetra Tech Inc. (a) 19,400
400 Tetra Technologies Inc. (a) 6,600
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
800 Texas Industries Inc. $ 42,400
600 Thomas Industries Inc. 14,663
600 Titanium Metals Corp. 13,238
500 TJ International Inc. 15,063
100 Tractor Supply Co. (a) 2,488
300 Tredegar Industries Inc. 25,463
200 Tremont Corp. 11,238
500 Triangle Pacific Corp. (a) 27,500
400 U.S. Can Corp. (a) 5,875
400 Universal Forest Products Inc. 6,550
200 USA Detergents Inc. (a) 3,313
700 Valmont Industries Inc. 13,978
600 Watsco Inc. 21,113
1,700 Wausau-Mosinee Paper Co. 38,888
500 Webb Delivery Corp. 12,969
1,000 Wellman Inc. 22,688
500 Wolverine Tube Inc. (a) 19,000
700 Wyman Gordon Co. (a) 13,956
400 Zero Corp. 11,350
400 Zoltek Companies Inc. (a) 8,050
------------
2,899,213
------------
Mining & Metals (.2%)
3,800 Armco Inc. (a) 24,225
524 Bethlehem Steel Corp. (a) 6,517
1,600 Kinross Gold Corp. (a) 5,200
1,300 Steel Dynamics Inc. (a) 18,038
------------
53,980
------------
Oil, Gas, & Other Energy (3.4%)
500 ACX Technologies Inc. (a) 10,875
800 Arch Coal Inc. 19,900
400 Atwood Oceanics Inc. (a) 15,925
1,100 Barrett Resources Corp. (a) 41,181
22 Bayard Drilling Technologies (a) 179
400 Belco Oil & Gas Corp. (a) 3,450
1,100 Benton Oil & Gas Co. (a) 11,688
600 Berry Pete Co. 7,800
800 Cabot Oil & Gas Corp. 16,000
700 Calpine Corp. (a) 14,131
200 Carbo Ceramics Inc. 6,825
2,398 Chesapeake Energy Corp. 9,592
600 Cliffs Drilling Co. (a) 19,688
1,000 COHO Energy Inc. (a) 6,750
900 Comstock Resource Inc. (a) 6,694
1,500 Cross Timbers Oil Co. 28,594
800 Devon Energy Corp. 27,950
700 Eastern Enterprises 30,013
1,300 Equitable Resource Inc. 39,650
500 Forcenergy Inc. (a) 8,906
1,100 Forest Oil Corp. (a) 15,744
1,900 Global Industry Limited (a) 32,063
3,500 Grey Wolf Inc. (a) 11,156
</TABLE>
- ---------
24
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
83 Gulfport Energy Corp. (a) $ 93
<C> <S> <C>
4,200 Harken Energy Corp. (a) 20,213
200 Holly Corp. 5,150
300 Houston Exploration Co. (a) 6,881
500 HS Resources Inc. (a) 7,281
1,500 Input/Output Inc. (a) 26,719
1,000 KCS Energy Inc. 11,438
3,900 Kelly Oil & Gas Corp. (a) 9,019
600 Key Energy Group Inc. (a) 7,875
800 Lomak Pete Inc. 8,350
600 Louis Dreyfus Natural Gas Corp. (a) 11,363
1,900 Marine Drilling Companies Inc. (a) 30,400
1,400 Meridian Resource Corp. (a) 9,888
1,900 National Oilwell Inc. (a) 50,944
1,100 Newfield Exploration Co. (a) 27,363
2,400 Newpark Resources Inc. (a) 26,700
400 North Carolina Natural Gas Corp. 10,150
700 Nuevo Energy Co. (a) 22,488
800 Oceaneering International Inc. (a) 14,200
1,000 Oneok Inc. 39,875
2,600 Parker Drilling Co. (a) 18,363
900 Patterson Energy Inc. (a) 8,803
600 Plains Resources Inc. (a) 10,763
700 Pool Energy Services Co. (a) 10,325
1,700 Pride International Inc. (a) 28,794
1,400 Quaker State Corp. 22,925
400 RPC Inc. 5,000
200 Rutherford-Moran Oil Corp. (a) 4,025
500 Seacor Smit Inc. (a) 30,656
800 Seitel Inc. (a) 12,950
1,000 Snyder Oil Corp. 19,938
400 St. Mary Land & Exploration Co. 9,650
400 Stone Energy Corp. (a) 14,225
600 Swift Energy Co. (a) 9,563
900 Tesoro Pete Corp. (a) 14,288
100 Thermo Ecotek Corp. (a) 1,563
1,300 Titan Exploration Inc. (a) 11,538
900 Tom Brown Inc. (a) 16,931
800 Transmontaigne Oil Co. 11,900
700 Trico Marine Services Inc. (a) 9,581
100 Trigen Energy Corp. 1,381
1,600 Tuboscope Inc. (a) 31,600
900 Unit Corp. (a) 5,456
1,200 Varco International Inc. (a) 23,775
800 Veritas DGC Inc. (a) 39,950
1,100 Vintage Pete Inc. 20,763
600 Zeigler Coal Holding Co. 10,275
------------
1,136,125
------------
Technology (12.3%)
100 Act Manufacturing Inc. (a) 950
800 Actel Corp. (a) 8,600
700 Adtran Inc. (a) 18,288
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
1,700 Affiliated Computer Services (a) $ 65,450
1,200 Alliance Semiconductor (a) 4,238
300 Alliant Techsystems (a) 18,975
500 Altron Inc. (a) 6,438
1,700 Ampex Corp. (a) 3,506
600 Amphenol Corp. (a) 23,400
500 Anadigics Inc. (a) 6,813
300 Analogic Corp. 13,425
800 Analysts International Corp. 22,700
1,300 Anixter International Inc. (a) 24,781
200 APEX PC Solutions Inc. (a) 5,575
1,100 Applied Magnetics Corp. (a) 8,388
800 Apsen Technology Inc. (a) 40,400
400 Arbor Software Corp. (a) 12,575
300 Aspect Development Inc. (a) 22,688
600 ATMI Inc. (a) 9,000
1,300 Auspex System Inc. (a) 7,069
1,100 Avant Corp. (a) 27,225
900 Avid Technology Inc. 30,150
500 Aware Inc. (a) 5,656
600 BEA System Inc. 13,763
500 Bell & Howell Co. (a) 12,906
400 Benchmark Electrics Inc. (a) 8,000
600 Berg Electrics Corp. (a) 11,738
600 Black Box Corp. (a) 19,913
900 Boole & Babbage Inc. (a) 21,488
2,000 Borland International Inc. (a) 14,750
700 Broderbund Software Inc. (a) 15,969
1,350 Burr Brown Corp. (a) 28,350
1,200 C-Cube Microsystems Inc. (a) 22,275
900 Cable Design Technologies Co. (a) 18,563
300 CACI International Inc. (a) 6,319
300 CDW Computer Centers Inc. (a) 15,000
1,300 Cellnet Data System Inc. (a) 12,594
1,000 Cellstar Corp. (a) 12,938
1,500 Cellular Technical Services Inc. (a) 703
1,200 Checkpoint Systems Inc. (a) 16,950
1,100 CHS Electronics Inc. (a) 19,663
800 Ciber Inc. (a) 30,400
2,300 Cirrus Logic Corp. (a) 25,588
1,450 Citrix System Inc. (a) 99,144
800 Clarify Inc. (a) 10,800
400 Coherent Communication System Corp. (a) 18,725
800 Coherent Inc. (a) 13,725
300 Complete Business Solutions (a) 10,781
900 Compucom System Inc. (a) 5,850
1,000 Computer Horizons Corp. (a) 37,063
100 Computer Management Sciences Inc. (a) 2,375
700 Computer Task Group Inc. 23,450
1,600 Comverse Technology Inc. (a) 83,000
2,100 Copytele Inc. (a) 4,725
900 CSG System International Inc. (a) 42,188
200 Cubic Corp. 4,775
</TABLE>
25-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
700 Cybermedia Inc. (a) $ 3,063
<C> <S> <C>
300 Data Dimensions Inc. (a) 5,119
1,600 Data General Corp. (a) 23,900
300 Data Transmission Network Co. (a) 12,000
300 Davox Corp. (a) 6,563
200 DBT Online Inc. (a) 5,400
200 Deltek System Inc. (a) 4,900
300 Dialogic Corp. (a) 8,925
1,300 Diamond Multimedia System (a) 8,897
600 Digital Lightwave Inc. (a) 1,950
200 Digital Link Corp. (a) 1,550
1,500 Digital Microwave Corp. (a) 10,875
900 DII Group Inc. (a) 15,356
400 Documentum Inc. (a) 19,200
1,400 DSP Communications Inc. (a) 19,250
300 Dynatech (a) 938
400 Edify Corp. (a) 4,050
1,600 EG & G Inc. 48,000
200 Eltron International Inc. (a) 5,500
400 Encad Inc. (a) 5,450
900 ESS Technology Inc. (a) 4,219
600 Esterline Technologies Corp. (a) 12,338
800 ETEC Systems Inc. (a) 28,150
300 Evans & Sutherland Computer (a) 7,556
800 Exabyte Corp. (a) 6,675
300 Exar Corp. (a) 6,300
1,200 Filenet Corp. (a) 34,650
900 Fonix Corp. (a) 3,122
100 Forrester Research Inc. (a) 3,975
1,000 Forte Software Inc. (a) 6,000
1,400 FTP Software Inc. (a) 2,363
300 Geotel Communications Corp. (a) 12,225
700 Gerber Scientific Inc. 15,925
2,400 Glenayre Technologies (a) 25,800
1,100 GT Interactive Software Corp. (a) 8,284
400 HADCO Corp. (a) 9,325
1,350 Harbinger Corp. (a) 32,653
1,400 HMT Technology Corp. (a) 11,725
800 HNC Software Inc. (a) 32,650
700 Hutchinson Technology Inc. (a) 19,075
700 Hyperion Software Inc. (a) 19,950
400 I2 Technologies Inc. (a) 14,050
700 Identix Inc. (a) 4,463
700 IKOS Systems Inc. (a) 2,734
1,400 Imation Corp. (a) 23,188
300 Imnet Systems Inc. (a) 4,013
900 In Focus Systems Inc. (a) 6,356
400 Indus International Inc. (a) 4,800
900 Industri-Matematik International Corp.
(a) 9,844
450 Information Management Resource Inc. (a) 15,216
1,000 Information Resources Inc. (a) 18,500
600 Innovex Inc. 7,838
300 INSO Corporation (a) 4,106
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
400 Integrated Circuit Systems Inc. (a) $ 6,650
2,900 Integrated Device Technology Inc. (a) 20,753
700 Integrated Process Equipment Corp. (a) 7,875
500 Integrated System Inc. (a) 7,688
1,700 Intergraph Corp. (a) 14,556
700 International Network Services (a) 28,700
1,900 International Rectifier Corp. (a) 16,150
900 Intersolv Inc. (a) 14,456
500 Intervoice Inc. (a) 8,875
400 JDA Software Group Inc. (a) 17,500
1,400 Kemet Corp. (a) 18,419
300 Kronos Inc. (a) 10,875
1,900 Learning Company Inc. (a) 56,288
200 Lecroy Corp. (a) 4,575
1,300 Legato Systems Inc. (a) 50,700
1,150 Level One Communications Inc. (a) 27,025
600 LHS Group Inc. (a) 39,525
700 Littelfuse Inc. (a) 17,675
1,700 LTX Corp. (a) 8,341
1,100 Macromedia Inc. (a) 20,556
600 Manugistics Group Inc. (a) 14,850
600 Marshall Industries (a) 16,350
400 Mastec Inc. (a) 9,550
400 Mastech Corp. (a) 11,250
2,300 Mentor Graphics Corp. (a) 24,294
600 Mercury Interactive Corp. (a) 26,775
1,100 Methode Electronics Inc. Class A 17,050
200 Metro Information Services (a) 7,825
400 Micrel Inc. (a) 13,000
800 Micro Linear Corp. (a) 3,650
700 Microage Inc. (a) 9,931
520 Microprose Inc. (a) 2,308
300 Microtouch Systems Inc. (a) 5,569
700 MRV Communications Inc. (a) 14,525
1,100 Mylex Corp. (a) 7,425
1,000 National Computer Systems Inc. 24,000
500 National Instruments Corp. (a) 17,875
400 National Microsystems Corp. (a) 6,400
600 National Techteam Inc. (a) 6,000
300 Neomagic Corp. (a) 4,650
1,000 Network Appliance Inc. (a) 38,938
600 Network Computing Devices Inc. (a) 4,875
700 Network Equipment Technologies (a) 10,981
400 Nichols Research Corp. (a) 10,925
1,100 Nimbus CD International Inc. (a) 12,513
1,800 Oak Technology Inc. (a) 8,213
400 Objective Systems Integrators Inc. (a) 2,950
400 ODS Networks Inc. (a) 2,600
1,300 OIS Optical Imaging Systems Inc. (a) 1,219
600 Open Market Inc. (a) 11,325
1,400 P-Com Inc. (a) 12,819
400 Park Electrochemical Corp. 8,450
100 Pegasystems Inc. (a) 2,713
</TABLE>
- ---------
26
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
500 Periphonics Corp. (a) $ 6,281
<C> <S> <C>
500 Phoenix Technology Limited (a) 6,375
700 Photronics Inc. (a) 15,444
1,000 Pioneer Standard Electronics Inc. 9,625
2,700 Platinum Technology Inc. (a) 77,119
500 Plexus Corp. (a) 9,938
1,100 PMC-Sierra Inc. (a) 51,563
500 Powertel Inc. (a) 9,250
100 Powerwave Technologies Inc. (a) 1,675
1,200 Premiere Technologies Inc. (a) 9,956
900 Premisys Communications Inc. (a) 22,388
1,000 Primark Corp. (a) 31,313
400 Progress Software Corp. (a) 16,400
300 Project Software & Development Inc. (a) 6,019
300 Proxim Inc. (a) 4,988
1,600 Psinet Inc. (a) 20,800
200 Radiant Systems Inc. (a) 2,900
200 Radisys Corp. (a) 4,300
500 Rambus Inc. (a) 30,563
1,400 Ramtron International Corp. (a) 4,856
3,100 Rational Software Corp. (a) 47,275
1,700 Read-Rite Corp. (a) 15,406
700 Remec Inc. (a) 7,963
700 Remedy Corp. (a) 11,900
600 Renaissance Worldwide Inc. (a) 13,050
300 Rogers Corp. (a) 9,900
2,200 S3 Inc. (a) 11,138
800 Sabre Group Holdings Inc. (a) 30,400
1,000 Safeguard Scientifics Inc. (a) 41,688
600 Sandisk Corp. (a) 8,288
1,600 Sanmina Corp. (a) 69,400
1,000 Santa Cruz Operation (a) 4,750
300 Sapient Corp. (a) 15,825
200 Sawtek Inc. (a) 2,950
500 SDL Inc. (a) 11,938
300 Seachange International Inc. (a) 3,731
400 Semtech Corp. (a) 7,075
1,600 Sequent Computer Systems Inc. (a) 19,300
300 Sheldahl Co. (a) 2,644
1,200 Shiva Corp. (a) 10,050
2,009 Siebel Systems Inc. (a) 64,790
400 Siliconix Inc. (a) 9,800
300 Sipex Corp. (a) 6,450
550 SLI Inc. (a) 14,369
900 Smart Modular Technologies Inc. (a) 13,163
400 Spectrian Corp. (a) 6,475
200 Speedfam International Inc. (a) 3,688
400 Splash Technology Holdings Inc. (a) 6,875
200 SPSS Inc. (a) 4,650
400 Stanford Telecommunications (a) 5,925
1,000 Stratus Computer Inc. (a) 25,313
1,300 Structural Dynamics Research Corp. (a) 30,063
400 Supertex Inc. (a) 4,850
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
300 Sykes Enterprises Inc. (a) $ 6,019
2,000 Symantec Corp. (a) 52,250
1,200 System Software Associates Inc. (a) 8,550
1,200 Systems & Computer Technology (a) 32,400
1,100 Systemsoft Corp. (a) 1,650
200 Tech-Sym Corp. (a) 5,563
1,000 Technology Solutions Co. (a) 31,688
400 Tekelec (a) 17,900
600 Telxon Corp. (a) 19,425
100 Thermo Optek Corp. (a) 1,481
100 Thermoquest Corp. (a) 1,494
300 Thermotrex Corp. (a) 5,138
300 Transaction Network Services Inc. (a) 6,319
500 Trident Microsystems Inc. (a) 2,656
800 Trimble Navigation Limited (a) 12,950
300 Triquint Semiconductor Inc. (a) 5,700
900 Unitrode Corp. (a) 10,350
700 USCS International Inc. (a) 14,481
1,000 Valence Technology Inc. (a) 5,688
1,500 Vanstar Corp. (a) 21,844
300 Vantive Corp. (a) 6,150
1,500 Veritas Software Co. (a) 62,063
700 Viasoft Inc. (a) 11,331
400 Videoserver Inc. (a) 4,900
900 Visio Corp. (a) 42,975
500 VWR Scientific Products Corp. (a) 12,313
500 Walker Interactive Systems Inc. (a) 7,375
300 Wall Data Inc. (a) 4,800
1,400 Wang Labs Inc. (a) 35,613
300 Watkins-Johnson Co. 7,800
600 Westell Technologies Inc. (a) 5,550
400 Whittman-Hart Inc. (a) 19,350
700 Wind River Systems Inc. (a) 25,113
800 World Access Inc. (a) 24,000
800 Xircom Inc. (a) 12,450
1,200 Xylan Corp. (a) 35,775
900 Yahoo Inc. (a) 141,750
600 Zebra Technologies Corp. (a) 25,650
500 Zitel Corp. (a) 2,125
300 Zoran Corp. (a) 3,788
------------
4,105,947
------------
Transportation (4.3%)
900 AAR Corp. 26,606
600 Aftermarket Technology Corp. (a) 11,250
1,100 Air Express International Corp. 29,425
1,800 Airborne Flight Corp. 62,888
300 Airnet System Inc. (a) 4,838
1,500 Airtran Holdings Inc. (a) 11,297
800 Alaska Air Group Inc. (a) 43,650
1,400 America West Holding Corp. (a) 39,988
800 American Freightways Corp. (a) 8,000
400 AO Smith Corp. 20,675
</TABLE>
27-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
900 Arctic Cat Inc. $ 8,888
<C> <S> <C>
700 Arnold Industry Inc. 10,325
800 ASA Holdings Inc. 39,700
300 Atlas Air Inc. (a) 10,144
500 Aviall Inc. (a) 6,844
400 Avondale Industry Inc. (a) 11,038
400 Barnes Group Inc. 10,825
800 BE Aerospace Inc. (a) 23,300
500 Breed Technologies Inc. 7,656
100 Christiana Company Inc. (a) 3,100
400 Circle International Group Inc. 11,200
700 Coach USA Inc. (a) 31,938
500 Coachman Industries Inc. 13,063
800 Consolidated Freightways Corp. (a) 11,150
400 Covenant Transport Inc. (a) 7,800
300 Eagle USA Airfreight Inc. (a) 10,406
400 Excel Industry Inc. 5,725
600 Exide Corp. 10,088
900 Expeditors International of Washington 39,600
1,500 Federal Mogul Corp. 101,250
400 Florida East Coast Industries 11,700
800 Fritz Companies Inc. (a) 10,700
2,600 Gentex Corp. (a) 47,125
2,100 Greyhound Lines Inc. (a) 12,731
200 Halter Marine Group Inc. (a) 3,013
1,100 Hayes Lemmerz (a) 43,725
600 Heartland Express Inc. (a) 12,150
400 Hvide Marine Inc. (a) 5,425
800 JB Hunt Transportation 28,500
900 Kirby Corp. (a) 22,725
100 Kitty Hawk Inc. (a) 1,700
150 Knight Transportation Inc. (a) 2,869
400 Landstar Systems Inc. (a) 13,975
240 Marine Transport Corp. (a) 975
900 Mascotech Inc. 21,600
450 Mesava Holdings Inc. (a) 10,350
550 Midwest Express Holdings Inc. (a) 19,903
1,200 Miller Industries Inc. (a) 9,300
800 Modine Manufacturing Co. 27,700
600 Motivepower Industries Inc. (a) 14,700
300 MS Carriers Inc. (a) 8,138
500 Myers Industries Inc. 12,000
1,300 Newport News Shipbuilding Inc. 34,775
500 O'Reilly Automotive Inc. (a) 18,000
800 Offshore Logistics Inc. (a) 14,200
1,400 OMI Corp. (a) 11,200
1,000 Overseas Shipholding Group 20,375
700 Pittston Co. 10,894
1,000 Polaris Industries Inc. 37,625
400 Roadway Express Inc. 7,550
600 Simpson Industries Inc. 8,213
300 Skyline Corp. 9,788
400 SPX Corp. (a) 25,750
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
300 Standard Motor Products Inc. (a) $ 6,675
600 Standard Products Co. 16,875
700 Superior Industries International Inc. 19,731
750 Swift Transportation Co. (a) 14,859
900 TBC Corp. (a) 5,963
300 Thor Industries Inc. 8,306
600 Titan International Inc. 10,200
600 Tower Automotive Inc. (a) 25,725
2,000 Trans World Airlines Inc. (a) 20,750
400 U.S. Rentals Inc. (a) 15,775
900 USFreightways Corp. 29,559
900 Wabash National Corp. 23,175
300 Walbro Corp. (a) 4,238
1,000 Werner Enterprises Inc. 19,063
500 Westinghouse Air Brake Co. 13,188
500 Winnebago Industries 6,375
700 Wynns International Inc. 13,475
1,000 Yellow Corp. (a) 18,563
------------
1,444,526
------------
Utilities & Energy (7.7%)
400 Aerial Communications Inc. (a) 2,500
2,000 AGL Resources Inc. 39,750
1,300 Aliant Communications Inc. 35,669
600 American Mobile Satellite Co. (a) 5,850
300 Aquarion Co. 10,256
200 Aquila Gas Pipeline Corp. 2,450
500 Associated Group Inc. (a) 20,500
1,100 Atmos Energy Corp. 33,550
500 Bay Street Gas Co. 19,156
750 Black Hills Corp. 17,250
1,800 Cablevision System Corp. (a) 150,300
400 California Water 10,050
600 Cellular Communications International
(a) 29,925
600 Centennial Cellular Corp. (a) 22,388
600 Central Hudson Gas & Electric Co. 27,525
1,100 Central Maine Power Co. 21,450
1,100 Century Communications Corp. (a) 20,625
500 CFW Communication Co. 11,625
500 Cilcorp Inc. 24,000
800 Cleco Corp. 23,800
300 Colonial Gas Co. 8,588
700 Commonwealth Energy System 26,425
400 Commonwealth Telephone Enterprise (a) 10,550
1,900 Comsat Corp. 53,794
3,600 Conectiv Inc. 73,800
400 Connecticut Energy Corp. 11,150
500 Corecomm Inc. (a) 13,125
300 CTG Resource Inc. 7,050
300 E Town Corp. 11,250
700 Eastern Utilities Association 18,375
300 Echostar Communications (a) 7,219
2,300 El Paso Electric Co. (a) 21,131
</TABLE>
- ---------
28
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
600 Empire Distribution Electric Co. $ 12,525
<C> <S> <C>
1,000 Energen Corp. 20,125
800 General Communications Class A (a) 4,850
1,200 Hawaiian Electric Industries 47,625
1,200 Highwaymaster Communications (a) 5,100
800 Indiana Energy Inc. 23,900
1,600 Intermedia Communications (a) 67,100
2,909 Interstate Energy 94,543
600 IXC Communications Inc. (a) 29,100
600 Jones Intercable Inc. Class A (a) 15,000
600 Laclede Gas Co. 14,700
1,800 Lincoln Electric 39,825
600 Madison Gas & Electric Co. 13,725
1,400 McLeod USA Inc. (a) 54,425
1,200 MDU Resources Group Inc. 42,825
1,200 Minnesota Power & Light Co. 47,700
1,800 Mobile Telecommunications Technologies
(a) 42,131
1,800 Nevada Power Co. 46,350
700 New Jersey Resources 24,981
500 North Pittsburgh Systems Inc. 7,969
800 Northwest Natural Gas Co. 22,375
600 Northwestern Corp. 15,000
1,100 NTL Inc. (a) 58,850
400 NUI Corp. 10,175
1,100 Omnipoint Corp. (a) 25,231
500 Orange & Rockland Utilities Inc. 26,844
400 Otter Tail Power Co. 14,825
300 Pacific Gateway Exchange Inc. (a) 12,019
1,600 Pagemart Wireless Inc. (a) 14,500
3,900 Paging Network Inc. (a) 54,600
300 Pennsylvania Enterprises Inc. 8,081
800 Philadelphia Suburban Corp. 17,500
1,100 Piedmont Natural Gas Inc. 36,988
500 Primus Telecommunications (a) 9,469
1,500 Public Service Co. New Mexico Inc. 34,031
700 Public Service Co. North Carolina Inc. 15,225
1,200 RCN Corp. (a) 23,250
1,400 Rochester Gas & Electric Corp. 44,713
420 Semco Energy Inc. 7,376
1,100 Sierra Pacific Resources 39,944
900 Sigcorp Inc. 28,856
500 Smartalk Teleservices Inc. (a) 7,281
300 South Jersey Industries Inc. 8,288
300 Southern California Water Co. 8,138
300 Southern United Co. (a) 9,675
1,000 Southwest Gas Corp. 24,438
1,000 Southwestern Energy Co. 9,188
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
600 TCA Cable TV Inc. $ 36,000
2,300 TCI Satellite Entertainment Inc. Class A
(a) 13,513
1,200 Tel-Save Holdings Inc. (a) 17,700
545 Teleport Communications Group Inc. (a) 29,566
400 TNP Enterprises Inc. 12,350
1,200 UGI Corp. 29,850
1,100 Unisource Energy Corp. Holding Co. (a) 17,325
500 United Illumination Co. 25,313
900 United International Holdings Inc. Class
A (a) 14,400
1,500 United States Satellite (a) 17,531
900 United Water Resources Inc. 16,200
1,300 Vanguard Cellular Systems Inc. Class A
(a) 24,538
1,600 Washington Gas & Light Co. 42,800
2,000 Washington Water Power Co. 44,875
700 Western Gas Resource Inc. 10,238
2,800 Western Wireless Corp. (a) 55,825
1,400 Wicor Inc. 32,375
1,400 Winstar Communications (a) 60,113
900 WPS Resources Corp. 29,531
400 Yankee Energy System Inc. 9,850
------------
2,572,328
------------
Total common stocks
(cost $31,692,570) 33,189,294
------------
<CAPTION>
Principal
amount
- ----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (.8%)
$ 282,000 U.S. Treasury Bills, 4.890% to 5.070%,
due August, 1998 to September, 1998
(cost $279,314) 279,297
------------
TOTAL INVESTMENTS (100.0%)
(cost $31,971,884) 33,468,591
------------
LIABILITIES, LESS CASH AND OTHER ASSETS (0.0%)
(721)
------------
NET ASSETS (100.0%) $ 33,467,870
------------
------------
</TABLE>
Notes:
(a) Non-income producing security.
At June 30, 1998, net unrealized appreciation of $1,496,707 consisted of gross
unrealized appreciation of $3,723,903 and gross unrealized depreciation of
$2,227,196 based on cost of $31,971,884 for federal income tax purposes.
See accompanying notes to financial statements.
29-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (97.4%)
Australia (2.2%)
6,857 Amatil Ltd. Coca Cola (a) $ 45,859
MISCELLANEOUS FOOD PREPARATIONS
2,500 Brambles Industries Ltd. (a) 49,060
MISCELLANEOUS TRANSPORTATION SERVICES
19,559 Broken Hill Proprietary (a) 165,326
BITUMINOUS COAL AND LIGNITE MINING
13,000 Coles Myer Ltd. (a) 50,716
RETAIL STORES
16,700 CSR Ltd. 48,190
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
25,900 Fosters Brewing Group Ltd. (a) 60,945
MISCELLANEOUS NON-DURABLE GOODS
7,300 ICI Australia (a) 43,171
CHEMICALS AND ALLIED PRODUCTS
3,045 Lend Lease Corp. Ltd. (a) 61,565
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
14,200 National Australia Bank Ltd. (a) 187,297
FOREIGN BANKING
17,600 News Corporation Ltd. (a) 143,644
COMMUNICATIONS SERVICES
25,752 Normandy Mining Ltd. (a) 21,050
GOLD AND SILVER ORES
21,200 Pacific Dunlop 34,263
MISCELLANEOUS MANUFACTURING INDUSTRIES
17,000 Pioneer International Ltd. (a) 40,530
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
5,300 Rio Tinto Ltd. (a) 63,014
METAL MINING SERVICES
11,500 Santos Ltd. 35,606
CRUDE PETROLEUM AND NATURAL GAS
47,700 Telstra Corporation (a) 122,284
COMMUNICATIONS SERVICES
12,960 Western Mining Corp. Holding Ltd. (a) 39,003
METAL MINING SERVICES
29,748 Westfield Trust (a) 57,104
TRUSTS
18,500 Westpac Banking Corp (a) 112,841
FOREIGN BANKING
------------
1,381,468
------------
Austria (.4%)
840 Bank Austria AG (a) 68,323
FOREIGN BANKING
840 Bank Austria Rights (a) 44
FOREIGN BANKING
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
360 Oemv AG (a) $ 48,221
MISCELLANEOUS PRODUCTS OF PETROLEUM AND
COAL
620 Oest Elektrizatswirts Class A (a) 74,210
NONCLASSIFIABLE ESTABLISHMENTS
360 Va Technologie AG (a) 44,791
MACHINERY, EQUIPMENT, AND SUPPLIES
------------
235,589
------------
Belgium (1.6%)
300 Barco N.V. (Industries) (a) 83,848
ELECTRIC SERVICES
80 Bekaert SA (a) 66,434
ELECTRIC SERVICES
700 Cimenteries Cbr Cementbed (a) 78,447
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,020 Delhaize Le Ps (a) 71,271
RETAIL STORES
300 Electrabel 85,058
ELECTRIC SERVICES
300 Fortis AG (a) 76,592
INSURANCE CARRIERS
450 Gbl Group Bxl Lamb (a) 90,822
HOLDING OFFICES
600 NV Union Miniere SA (a) 37,087
METALS AND MINERALS, EXCEPT PETROLEUM
260 Petrofina SA NPV (a) 106,732
CRUDE PETROLEUM AND NATURAL GAS
800 Reunies Electrobel & Tractebel (a) 117,173
MISCELLANEOUS FOOD PREPARATIONS
200 Royal Belge (a) 76,055
INSURANCE CARRIERS
1,250 Solvay Et Cie 'A' NPV (a) 99,100
CHEMICALS AND ALLIED PRODUCTS
------------
988,619
------------
Denmark (1.0%)
100 D/S 1912 'B' (a) 85,806
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
50 D/S Svendborg 'B' (a) 61,082
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
950 Danisco A/S (a) 63,821
MISCELLANEOUS MANUFACTURING INDUSTRIES
600 Den Danske Bank (a) 71,979
FOREIGN BANKING
700 Novo Nordisk A/S-B (a) 96,495
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
1,800 Tele Danmark 'B' (a) 172,749
TELEPHONE COMMUNICATIONS
</TABLE>
- ---------
30
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
800 Unidanmark (a) $ 71,892
<C> <S> <C>
FOREIGN BANKING
------------
623,824
------------
Finland (1.0%)
2,400 Kesko Oy Osake (a) 37,838
MISCELLANEOUS BUSINESS SERVICES
11,000 Merita Ltd. A Shares (a) 72,578
FOREIGN BANKING
3,600 Nokia Oy A Shares 264,759
COMMUNICATIONS EQUIPMENT
1,600 Nokia Oyj -- K Shares 117,817
COMMUNICATIONS EQUIPMENT
3,000 Outokumpo Oy 38,276
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
1,000 Sampo Insurance Co -- A Shares (a) 47,389
INSURANCE AGENTS, BROKERS, AND SERVICE
2,800 Upm-Kymmene (a) 77,062
PAPER AND PAPER PRODUCTS
------------
655,719
------------
France (9.6%)
400 Accor French Ord (a) 111,941
SERVICES
600 Air Liquide Bonus Rights (a) 12,416
METALS AND MINERALS, EXCEPT PETROLEUM
600 Air Liquide French (a) 99,239
METALS AND MINERALS, EXCEPT PETROLEUM
1,600 Alcatel Alsthom 325,768
COMMUNICATIONS EQUIPMENT
2,850 Axa Company Frf60 320,541
MISCELLANEOUS INVESTING
1,900 Banque National De Paris (a) 155,242
COMMERCIAL BANKS
700 Bic 49,785
MISCELLANEOUS NON-DURABLE GOODS
325 Bouygues (a) 59,022
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
400 Canal Plus (a) 74,760
SERVICES
350 Carrefour Supermarche 221,426
GROCERY STORES
1,200 Cie Generale Des Eaux (a) 256,234
SANITARY SERVICES
800 Compagnie De Saint Goban 148,329
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
93 Comptoirs Modernes (a) 48,453
SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
2,300 Elf-Aquitaine $ 323,353
MISCELLANEOUS PRODUCTS OF PETROLEUM AND
COAL
300 Eridania Beghin Say 66,242
MISCELLANEOUS FOOD PREPARATIONS
130 Essilor International (a) 54,980
MISCELLANEOUS NON-DURABLE GOODS
8,600 France Telecom Sa (a) 593,149
TELEPHONE COMMUNICATIONS
600 Groupe Danone (a) 165,431
MISCELLANEOUS FOOD PREPARATIONS
875 Havas SA (a) 74,243
ADVERTISING
300 Imetal (a) 41,234
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
590 L'Oreal (a) 328,177
MISCELLANEOUS NON-DURABLE GOODS
1,015 Lafarge Coppee French (a) 104,924
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,400 Lagardere Groupe (a) 58,283
INVESTMENT OFFICES
300 Legrand (a) 79,391
MISCELLANEOUS DURABLE GOODS
820 LVMH Company (a) 164,108
BEVERAGES
1,250 Michelin B French Reg Shares (a) 72,155
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
1,515 Paribas 162,124
MORTGAGE BANKERS AND BROKERS
900 Pernod-Ricard (a) 62,371
MISCELLANEOUS FOOD PREPARATIONS
625 Peugeot SA (a) 134,386
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
225 Pinault-Printemps-Redoute SA 188,305
DEPARTMENT STORES
180 Promodes (a) 99,735
GROCERY STORES
3,250 Rhone Polenc (a) 183,302
METALS AND MINERALS, EXCEPT PETROLEUM
100 Sagem S.A. (a) 77,803
MISCELLANEOUS DURABLE GOODS
950 Sanofi SA (a) 111,718
MISCELLANEOUS NON-DURABLE GOODS
1,500 Schneider SA (a) 119,607
MISCELLANEOUS DURABLE GOODS
1,000 Seita (a) 45,319
MISCELLANEOUS FOOD PREPARATIONS
500 Sidel 36,387
MISCELLANEOUS DURABLE GOODS
</TABLE>
31-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
750 Societe Generale-A $ 155,929
<C> <S> <C>
FOREIGN BANKING
400 Sodexho Alliance (a) 75,620
SERVICES
1,125 Suez Lyonnaise Des Eaux-Dumex (a) 185,142
SERVICES
1,000 Thomson Csf Ff 20 Fr Ord (a) 38,041
MISCELLANEOUS DURABLE GOODS
2,000 Total S.A. -- Series B (a) 260,005
OIL AND GAS FIELD SERVICES
2,400 Usinor Sacilor (a) 37,075
STEEL WORKS
950 Valeo (a) 97,105
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
------------
6,078,800
------------
Germany (11.2%)
500 Adidas Salomon AG Ord 87,117
MISCELLANEOUS TEXTILE GOODS
2,135 Allianz AG Holding Ger Reg 711,456
INSURANCE AGENTS, BROKERS, AND SERVICE
59 Allianz AG-New (a) 19,497
INSURANCE AGENTS, BROKERS, AND SERVICE
6,750 BASF AG 319,731
OTHER
7,700 Bayer AG 397,150
CHEMICALS AND ALLIED PRODUCTS
2,750 Bayer Hypoth-Und Wechsel Bank (a) 174,290
FOREIGN BANKING
3,000 Bayerische Vereinsbank AG (a) 255,120
FOREIGN BANKING
1,300 Beiersdorf (a) 82,752
CHEMICALS AND ALLIED PRODUCTS
335 Ckag Colonia Konzern AG (a) 41,480
INSURANCE AGENTS, BROKERS, AND SERVICE
5,775 Daimler Benz (a) 566,291
MOTOR VEHICLES, PARTS AND SUPPLIES
1,190 Degussa 73,244
MISCELLANEOUS PRIMARY METAL PRODUCTS
4,300 Deutsche Bank AG 364,123
FOREIGN BANKING
22,900 Deutsche Telekom AG (a) 617,842
UTILITIES REGULATION AND ADMINISTRATION
4,850 Dresdner Bank AG (a) 261,975
FOREIGN BANKING
700 Heidelberger Zement AG (a) 66,314
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
925 Hochtief AG 44,327
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
125 Karstadt AG Dem50 (a) $ 60,387
MISCELLANEOUS NON-DURABLE GOODS
100 Linde AG German Ord 70,082
MACHINERY, EQUIPMENT, AND SUPPLIES
4,120 Lufthansa AG (a) 103,397
AIR TRANSPORTATION & COURIER SERVICES
200 M.A.N. AG Dm50 (a) 77,782
MACHINERY, EQUIPMENT, AND SUPPLIES
3,500 Mannesmann AG 359,688
MACHINERY, EQUIPMENT, AND SUPPLIES
1,850 Merck Kgaa (a) 82,710
CHEMICALS AND ALLIED PRODUCTS
2,500 Metro AG (a) 151,659
MISCELLANEOUS NON-DURABLE GOODS
675 Muenchener Rueckversicherungs 334,689
INSURANCE CARRIERS
195 Preussag AG Dm50 (a) 69,572
STEEL WORKS
2,800 RWE AG (a) 165,980
MISCELLANEOUS MANUFACTURING INDUSTRIES
520 Sap AG (a) 315,451
COMPUTER PROGRAMMING & DATA PROCESSING
720 Schering AG (a) 84,843
CHEMICALS AND ALLIED PRODUCTS
300 SGL Carbon AG (a) 34,936
CHEMICALS AND ALLIED PRODUCTS
5,350 Siemens AG German Ord 326,477
ELECTRIC SERVICES
350 Thyssen AG Dm50 (a) 88,613
MISCELLANEOUS MANUFACTURING INDUSTRIES
4,350 Veba AG 296,421
MISCELLANEOUS MANUFACTURING INDUSTRIES
250 Viag AG (a) 168,972
UTILITIES REGULATION AND ADMINISTRATION
250 Volkswagen AG Dm50 (a) 240,300
MOTOR VEHICLE DEALERS
------------
7,114,668
------------
Hong Kong (1.3%)
16,800 Bank Of East Asia Hong Kong (a) 18,211
MISCELLANEOUS INVESTING
44,000 Cathay Pacific Airways Ltd. (a) 30,945
AIR TRANSPORTATION & COURIER SERVICES
16,000 Cheung Kong 78,672
REAL ESTATE AGENTS AND MANAGERS
18,500 CLP Holdings Ltd. (a) 84,279
UTILITIES REGULATION AND ADMINISTRATION
16,000 Hang Seng Bank (a) 90,442
FOREIGN BANKING
1,950 Hong Kong & China Gas (a) --
UTILITIES REGULATION AND ADMINISTRATION
42,900 Hong Kong & China Gas (a) 48,717
UTILITIES REGULATION AND ADMINISTRATION
</TABLE>
- ---------
32
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
78,400 Hong Kong Telecom $ 147,212
<C> <S> <C>
UTILITIES REGULATION AND ADMINISTRATION
24,000 Hutchison Whampoa 126,679
MISCELLANEOUS BUSINESS SERVICES
16,000 New World Development (a) 30,973
REAL ESTATE AGENTS AND MANAGERS
15,000 Sun Hung Kai Properties 63,688
REAL ESTATE AGENTS AND MANAGERS
17,000 Swire Pacific Ltd. A (a) 64,172
MISCELLANEOUS BUSINESS SERVICES
25,000 Wharf Holdings Ltd. (a) 24,680
REAL ESTATE AGENTS AND MANAGERS
1,250 Wharf Holdings Ltd. Warrants (a) --
REAL ESTATE AGENTS AND MANAGERS
------------
808,670
------------
Ireland (.5%)
10,593 Allied Irish Banks PLC 152,955
FOREIGN BANKING
4,700 CRH PLC (a) 66,735
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
8,990 Irish Life PLC (a) 82,777
INSURANCE AGENTS, BROKERS, AND SERVICE
14,550 Jefferson Smurfit Group 43,227
PAPER AND PAPER PRODUCTS
------------
345,694
------------
Italy (5.2%)
9,860 Assicurazione Generali Itl (a) 320,614
ACCIDENT AND HEALTH INSURANCE AND
MEDICAL SERVICE
26,000 Banca Commerciale Italiana 155,483
COMMERCIAL BANKS
21,000 Banca Intesa SPA 117,489
FOREIGN BANKING
29,000 Benetton Group 60,198
RETAIL STORES
36,000 Credito Italiano (a) 188,449
UTILITIES REGULATION AND ADMINISTRATION
10,000 Edison SPA (a) 80,250
COMMUNICATIONS SERVICES
77,500 Eni SPA (a) 507,927
RETAIL STORES
38,000 Fiat SPA (a) 166,318
RETAIL STORES
10,200 Istituto Banc San Paolo Torina 147,185
COMMERCIAL BANKS
7,500 Istituto Mobiliare Italiano (a) 118,140
UTILITIES REGULATION AND ADMINISTRATION
39,900 Istituto Nazionale Delle Assic (a) 113,352
UTILITIES REGULATION AND ADMINISTRATION
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
11,000 Italgas (a) $ 44,803
COMMUNICATIONS SERVICES
14,200 Mediaset SPA 90,629
COMMUNICATIONS SERVICES
7,920 Mediobanca Banca Di Credito (a) 100,472
COMMERCIAL BANKS
57,000 Montedison SPA (a) 70,703
RETAIL STORES
27,900 Parmalat Finanziaria SPA (Itl) (a) 56,896
OTHER
21,000 Pirelli SPA (a) 65,566
RETAIL STORES
4,550 R.A.S. SPA 59,257
UTILITIES REGULATION AND ADMINISTRATION
7,500 Sirti SPA (a) 40,800
RETAIL STORES
65,700 Telecom Italia Mobile (a) 401,762
COMMUNICATIONS SERVICES
15,900 Telecom Italia Mobile -- Drnc (a) 53,669
COMMUNICATIONS SERVICES
39,500 Telecom Italia SPA 290,767
COMMUNICATIONS SERVICES
9,600 Telecom Italia SPA -- Rnc 46,473
COMMUNICATIONS SERVICES
------------
3,297,202
------------
Japan (19.3%)
2,000 Acom Co. Ltd. (a) 94,967
MISCELLANEOUS BUSINESS SERVICES
990 Advantest Corp. (a) 53,215
ELECTRICAL INDUSTRIAL APPARATUS
6,000 Ajinomoto Co. Inc. (a) 52,527
MISCELLANEOUS FOOD PREPARATIONS
3,000 Alps Electronics Co. (a) 35,666
ELECTRICAL INDUSTRIAL APPARATUS
18,000 Asahi Bank Ltd. (a) 79,114
FOREIGN BANKING
5,000 Asahi Breweries Ltd. (a) 63,047
MISCELLANEOUS FOOD PREPARATIONS
15,000 Asahi Chemical Industry Co. Ltd. (a) 54,039
CHEMICALS AND ALLIED PRODUCTS
7,000 Bridgestone Corp. (a) 165,435
FABRICATED RUBBER PRODUCTS
8,000 Canon Inc. 181,575
ELECTRICAL INDUSTRIAL APPARATUS
10,000 Chiba Bank (a) 34,585
FOREIGN BANKING
6,000 Citizen Watch Co. Ltd. (a) 49,501
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
1,700 Credit Saison (a) 33,685
RETAIL STORES
</TABLE>
33-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
7,000 Dai Nippon Printing Co. Ltd. $ 111,719
<C> <S> <C>
MISCELLANEOUS MANUFACTURING INDUSTRIES
8,000 Daiei Inc. (a) 18,734
RETAIL STORES
5,000 Daiichi Pharmaceutical (a) 65,929
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
10,000 Daiwa House Industry (a) 88,266
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
13,000 Daiwa Securities (a) 55,921
MISCELLANEOUS INVESTING
8,000 Denso Corporation 132,578
MISCELLANEOUS TRANSPORTATION EQUIPMENT
36 East Japan Rail (a) 169,125
MISCELLANEOUS TRANSPORTATION SERVICES
4,000 Ebaba Corportation (a) 35,566
MACHINERY, EQUIPMENT, AND SUPPLIES
3,000 Eisai Co. Ltd. 40,854
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
2,200 Fanuc Co. (a) 76,089
ELECTRICAL INDUSTRIAL APPARATUS
23,000 Fuji Bank (a) 102,582
FOREIGN BANKING
5,000 Fuji Photo Film 174,010
CHEMICALS AND ALLIED PRODUCTS
5,000 Fujikura Ltd. (a) 22,264
NONFERROUS FOUNDRIES (CASTING)
16,000 Fujitsu Ltd. (a) 168,317
COMMUNICATIONS EQUIPMENT
8,000 Furkukawa Electric (a) 26,919
NONFERROUS FOUNDRIES (CASTING)
7,000 Gunma Bank (a) 47,361
FOREIGN BANKING
28,000 Hitachi Ltd. (Hit. Seisakusho) 182,582
ELECTRICAL INDUSTRIAL APPARATUS
8,000 Honda Motor Co. Ltd. (a) 284,757
MISCELLANEOUS TRANSPORTATION EQUIPMENT
1,000 Hoya Corp (a) 28,317
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
16,000 Industrial Bank Of Japan 100,298
FOREIGN BANKING
3,000 Ito Yokado Co. 141,153
RETAIL STORES
15,000 Japan Airlines (a) 41,718
AIR TRANSPORTATION & COURIER SERVICES
10,000 Joyo Bank (a) 36,891
FOREIGN BANKING
3,000 Jusco Co. (a) 55,013
RETAIL STORES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
11,000 Kajima Corp. (a) $ 30,118
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
7,600 Kansai Electric Power (a) 131,973
ELECTRIC SERVICES
6,000 Kao Corp. 92,517
CHEMICALS AND ALLIED PRODUCTS
22,000 Kawasaki Heavy Industries (a) 44,385
MISCELLANEOUS TRANSPORTATION EQUIPMENT
27,000 Kawasaki Steel (a) 48,635
STEEL WORKS
4,000 Kinden Corporation (a) 48,420
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
15,000 Kinki Nippon Railway (a) 70,252
MISCELLANEOUS TRANSPORTATION SERVICES
11,000 Kirin Brewery Co. Ltd. (a) 103,829
MISCELLANEOUS FOOD PREPARATIONS
10,000 Komatsu Ltd. (a) 48,564
MACHINERY, EQUIPMENT, AND SUPPLIES
2,100 Kyocera Corp. 102,590
ELECTRICAL INDUSTRIAL APPARATUS
12,000 Kyowa Hakko Kogyo (a) 47,555
CHEMICALS AND ALLIED PRODUCTS
4,000 Marui Co. (a) 59,660
RETAIL STORES
19,000 Matsushita Electric Ind. 305,292
HOUSEHOLD AUDIO AND VIDEO EQUIPMENT
4,000 Minebea Co. Ltd. (a) 39,802
MACHINERY, EQUIPMENT, AND SUPPLIES
20,000 Mitisui O.S.K. Lines Ltd. (a) 34,008
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
22,000 Mitsubishi Chemical Corp. (a) 39,787
CHEMICALS AND ALLIED PRODUCTS
12,000 Mitsubishi Corp. (a) 74,359
MISCELLANEOUS INVESTING
22,000 Mitsubishi Electric (a) 50,567
ELECTRICAL INDUSTRIAL APPARATUS
10,000 Mitsubishi Estate Co. Ltd. (a) 87,905
REAL ESTATE OPERATORS AND LESSORS
25,000 Mitsubishi Heavy 94,390
MISCELLANEOUS TRANSPORTATION EQUIPMENT
9,000 Mitsubishi Trust 76,456
FOREIGN BANKING
11,000 Mitsui & Co. 59,444
SERVICES
6,000 Mitsui Fudosan 47,383
SERVICES
9,000 Mitsui Marine & Fire Insurance (a) 45,199
INSURANCE CARRIERS
7,000 Mitsui Mining & Smelting (a) 29,052
NONFERROUS FOUNDRIES (CASTING)
</TABLE>
- ---------
34
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
9,000 Mitsui Trust & Banking $ 21,205
<C> <S> <C>
FOREIGN BANKING
2,000 Murata Manufacturing Co. Ltd. (a) 64,848
ELECTRICAL INDUSTRIAL APPARATUS
5,000 Mycal Corp (a) 31,703
RETAIL STORES
16,000 Nagoya Railroad Co. Ltd. (a) 48,419
MISCELLANEOUS TRANSPORTATION SERVICES
16,000 Nec Corp. (a) 149,064
ELECTRICAL INDUSTRIAL APPARATUS
6,000 NGK Insulators Ltd. (a) 52,094
GLASS PRODUCTS
4,000 Nikon Corp. (a) 28,764
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
2,000 Nippon Comsys Corp. (a) 22,971
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
12,000 Nippon Express Co. (a) 64,330
MISCELLANEOUS TRANSPORTATION SERVICES
9,000 Nippon Fire & Marine Insurance (a) 36,769
INSURANCE CARRIERS
19,000 Nippon Oil Co. 61,332
CRUDE PETROLEUM AND NATURAL GAS
7,000 Nippon Paper Industries Co. (a) 29,153
PULP MILLS
40,000 Nippon Steel Corp. (a) 70,324
STEEL WORKS
122 Nippon Telegraph And Telephone Corp. (a) 1,010,916
COMMUNICATIONS SERVICES
17,000 Nippon Yusen Kabushiki Kaish (a) 57,570
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
24,000 Nissan Motors (a) 75,569
MISCELLANEOUS TRANSPORTATION EQUIPMENT
2,000 Nitto Denko Corp. (a) 30,046
ELECTRICAL INDUSTRIAL APPARATUS
43,000 NKK Corporation (a) 41,207
STEEL WORKS
17,000 Nomura Securities Co. Ltd. 197,824
MISCELLANEOUS INVESTING
6,000 Ohbayashi-Gumi Corp. (a) 25,420
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
10,000 Oji Paper Co. Ltd. (a) 43,520
PULP MILLS
3,000 Omron Corp. (a) 45,826
ELECTRICAL INDUSTRIAL APPARATUS
3,000 Onward Kashiyama Co. Ltd. (a) 37,504
MISCELLANEOUS TEXTILE GOODS
700 Orix Corp. (a) 47,260
MISCELLANEOUS BUSINESS SERVICES
25,000 Osaka Gas Co. Ltd. (a) 64,127
ELECTRIC SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
2,000 Pioneer Electric Corp. (a) $ 38,188
ELECTRICAL INDUSTRIAL APPARATUS
1,000 Rohm Company (a) 102,677
ELECTRICAL INDUSTRIAL APPARATUS
23,000 Sakura Bank Ltd. (a) 59,660
FOREIGN BANKING
5,000 Sankyo Co. Ltd. (a) 113,845
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
19,000 Sanyo Electric Co. Ltd. (a) 57,498
ELECTRICAL INDUSTRIAL APPARATUS
1,000 Secom Co. Ltd. 57,715
OTHER
7,000 Sekisui Chemical (a) 35,811
CHEMICALS AND ALLIED PRODUCTS
9,000 Sekisui House Ltd. (a) 69,711
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,000 Seventy Seven Bank (a) 50,149
FOREIGN BANKING
12,000 Sharp Corp. (a) 97,186
ELECTRICAL INDUSTRIAL APPARATUS
2,000 Shimano Industrial (a) 50,726
MISCELLANEOUS TRANSPORTATION EQUIPMENT
10,000 Shimizu Corp. (a) 28,821
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
4,000 Shin-Etsu Chemical Co. (a) 69,172
CHEMICALS AND ALLIED PRODUCTS
10,000 Shionogi & Co. Ltd. (a) 57,643
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
4,000 Shiseido Co. (a) 45,422
CHEMICALS AND ALLIED PRODUCTS
8,000 Shizuoka Bank (a) 85,888
FOREIGN BANKING
700 SMC Corporation (a) 53,212
MACHINERY, EQUIPMENT, AND SUPPLIES
3,700 Sony Corp. (a) 318,586
ELECTRICAL INDUSTRIAL APPARATUS
20,000 Sumitomo Bank (a) 194,544
FOREIGN BANKING
15,000 Sumitomo Chemical Co. (a) 46,258
CHEMICALS AND ALLIED PRODUCTS
9,000 Sumitomo Corp. (a) 43,253
SERVICES
7,000 Sumitomo Electric Industries (a) 70,764
ELECTRICAL INDUSTRIAL APPARATUS
9,000 Sumitomo Marine & Fire (a) 50,322
INSURANCE CARRIERS
8,000 Sumitomo Metal (a) 32,453
NONFERROUS FOUNDRIES (CASTING)
</TABLE>
35-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
25,000 Sumitomo Metal Industries (a) $ 40,170
<C> <S> <C>
STEEL WORKS
15,000 Taisei Corp. (a) 32,424
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
3,000 Taisho Pharmaceutical Co. Ltd. (a) 55,986
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
8,000 Takeda Chemical Industries Ltd. (a) 212,702
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
17,000 Teijin Ltd. (a) 51,445
MISCELLANEOUS TEXTILE GOODS
38,000 The Bank Of Tokyo Mitsubishi (a) 402,219
FOREIGN BANKING
15,000 Tobu Railway Co. Ltd. (a) 39,664
MISCELLANEOUS TRANSPORTATION SERVICES
500 Toho Co. 52,599
SERVICES
4,900 Tohoku Electric Power (a) 72,201
ELECTRIC SERVICES
17,000 Tokai Bank (a) 93,583
FOREIGN BANKING
12,000 Tokio Marine & Fire Insurance (a) 123,298
INSURANCE CARRIERS
10,900 Tokyo Electric Power Co. Inc. (a) 213,625
ELECTRIC SERVICES
1,000 Tokyo Electron Ltd. (a) 30,623
SERVICES
26,000 Tokyo Gas (a) 57,886
ELECTRIC SERVICES
12,000 Tokyu Corp. (a) 36,401
MISCELLANEOUS TRANSPORTATION SERVICES
7,000 Toppan Printing Co. (a) 74,849
MISCELLANEOUS MANUFACTURING INDUSTRIES
13,000 Toray Industries Inc. (a) 67,441
MISCELLANEOUS TEXTILE GOODS
3,000 Tostem Corporation (a) 38,866
METALS AND MINERALS, EXCEPT PETROLEUM
2,000 Toyo Seikan (a) 24,498
METALS AND MINERALS, EXCEPT PETROLEUM
3,000 Toyoda Automatic Loom Works (a) 52,960
MISCELLANEOUS TRANSPORTATION EQUIPMENT
37,000 Toyota Motor Co. (a) 957,090
MOTOR VEHICLE DEALERS
1,000 Uni-Charm (a) 37,036
CHEMICALS AND ALLIED PRODUCTS
3,000 Uny Co. Ltd. (a) 48,636
RETAIL STORES
5,000 Wacoal Corp. 50,797
MISCELLANEOUS TEXTILE GOODS
3,000 Yamaguchi Bank (a) 38,476
FOREIGN BANKING
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
3,000 Yamaha Corp. $ 29,182
MISCELLANEOUS MANUFACTURING INDUSTRIES
4,000 Yamanouchi Pharmaceutical 83,294
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
5,000 Yamato Transport Co. Ltd. (a) 56,021
MISCELLANEOUS TRANSPORTATION SERVICES
4,000 Yamazaki Baking Co. 35,450
MISCELLANEOUS FOOD PREPARATIONS
13,000 Yokohama Bank (a) 31,847
FOREIGN BANKING
------------
12,244,999
------------
Malaysia (.3%)
22,000 Golden Hope Plantations Berhad (a) 20,156
PHARMACEUTICALS
28,000 Malayan Banking Berhad 28,218
MISCELLANEOUS INVESTING
14,000 Malaysian Intern Shipping Corp. 20,422
MISCELLANEOUS BUSINESS SERVICES
22,000 Resorts World Berhad 24,187
MISCELLANEOUS BUSINESS SERVICES
33,000 Sime Darby Berhad (a) 22,753
MISCELLANEOUS BUSINESS SERVICES
22,000 Systems Telekom Malaysia 37,129
MISCELLANEOUS BUSINESS SERVICES
15,000 Tenaga Nasional Berhad (a) 18,082
MISCELLANEOUS BUSINESS SERVICES
------------
170,947
------------
Netherlands (6.2%)
13,400 ABN Amro Holdings (a) 313,555
MORTGAGE BANKERS AND BROKERS
705 Akzo Dutch Ord (a) 156,719
MISCELLANEOUS CHEMICAL PRODUCTS
965 ASR Verzekeringsgroe 81,878
INSURANCE AGENTS, BROKERS, AND SERVICE
6,690 Elsevier 100,963
MISCELLANEOUS PUBLISHING
1,055 Getronics N.V. 54,715
COMPUTER PROGRAMMING & DATA PROCESSING
3,812 Heineken N.V. 149,727
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
660 IHC Caland N.V. 37,149
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
8,795 Ing Groep N.V. (a) 575,892
COMMERCIAL BANKS
980 KLM Royal Dutch Ari Ord (a) 39,793
AIR TRANSPORTATION & COURIER SERVICES
4,477 Koninklijke Ahold N.V. 143,715
GROCERY STORES
</TABLE>
- ---------
36
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
4,435 Koninklijke N.V. (a) $ 170,709
<C> <S> <C>
COMMUNICATIONS SERVICES
1,310 N V Koninklijke (a) 33,809
PAPER AND PAPER PRODUCTS
1,480 Oce NV 63,006
COMPUTER PROGRAMMING & DATA PROCESSING
3,005 Philips Electronics N.V. 252,605
ELECTRONIC COMPONENTS AND ACCESSORIES
19,015 Royal Dutch Petroleum Co. 1,054,403
OIL AND GAS FIELD SERVICES
4,435 TNT Post Group (a) 113,370
COMMUNICATIONS SERVICES
6,035 Unilever NV-Cva (a) 478,831
MISCELLANEOUS NON-DURABLE GOODS
675 Wolters Kluwer N.V. 92,645
BOOKS
------------
3,913,484
------------
New Zealand (.2%)
64,900 Brierley Investments Ltd. (a) 32,340
MISCELLANEOUS INVESTING
12,400 Fletcher Challenge Energy (a) 29,607
OIL AND GAS FIELD SERVICES
14,500 Telecom New Zealand 59,762
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
------------
121,709
------------
Norway (.4%)
1,600 Bergesen D Y (a) 30,442
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
9,300 Christiania Bank Og Kreditkass (a) 38,904
FOREIGN BANKING
2,200 Norsk Hydro Asa (a) 96,761
MISCELLANEOUS BUSINESS SERVICES
2,000 Orkla As A-Aksjer 46,523
MISCELLANEOUS BUSINESS SERVICES
1,000 Petroleum Geo-Services (a) 31,146
MISCELLANEOUS BUSINESS SERVICES
4,300 Storebrand Asa (a) 38,105
INSURANCE CARRIERS
------------
281,881
------------
Portugal (.6%)
1,400 Banco Espirito Santo -- Bonus Rights (a) 1,614
COMMERCIAL BANKS
1,400 Banco Espirito Santo -- Common Stock 42,041
COMMERCIAL BANKS
1,400 Banco Espirito Santo -- Rights (a) 8,714
COMMERCIAL BANKS
3,700 EDP Pl Common Stock (a) 86,010
ELECTRIC, GAS, AND OTHER UTILITY
SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
1,100 Jeronimo Martins & Filho $ 52,844
MISCELLANEOUS FOOD STORES
2,600 Portugal Telecom (a) 137,798
COMMUNICATIONS SERVICES
1,000 Sonae Industria E Investimento 54,618
SERVICES
------------
383,639
------------
Singapore (.3%)
6,000 City Developments (a) 16,762
REAL ESTATE AGENTS AND MANAGERS
7,500 Development Bank Of Singapore 41,507
MISCELLANEOUS INVESTING
7,000 Overseas Chinese Banking Corp. (a) 23,824
FOREIGN BANKING
9,000 Singapore Airlines Ltd.-Foreign (a) 42,083
MISCELLANEOUS MANUFACTURING INDUSTRIES
2,552 Singapore Press Holdings (a) 17,069
MISCELLANEOUS MANUFACTURING INDUSTRIES
46,000 Singapore Telecom Ltd. 100 (a) 65,343
MISCELLANEOUS MANUFACTURING INDUSTRIES
6,000 United Overseas Bank-Foreign 18,644
FOREIGN BANKING
------------
225,232
------------
Spain (3.6%)
195 Acerinox SA (a) 26,010
METALS AND MINERALS, EXCEPT PETROLEUM
5,300 Argentaria SA (a) 119,105
FOREIGN BANKING
227 Autopistas Concesionaria (a) 3,522
AUTOMOBILE PARKING
4,545 Autopistas Concesionaria (a) 70,510
AUTOMOBILE PARKING
7,035 Banco Bilbao Vizcaya SA (a) 361,652
MISCELLANEOUS INVESTING
4,522 Banco Central Hispano 142,374
FOREIGN BANKING
10,590 Banco Santader SA (a) 271,512
FOREIGN BANKING
8,605 Endesa SA (a) 188,580
ELECTRIC SERVICES
1,020 Fomento De Construc Y Contra (a) 52,702
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,535 Gas Natural Sdg SA (a) 111,097
GAS PRODUCTION AND DISTRIBUTION
8,465 Iberdrola I SA (a) 137,682
ELECTRIC SERVICES
3,670 Repsol SA 202,570
MISCELLANEOUS PRODUCTS OF PETROLEUM AND
COAL
</TABLE>
37-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
2,800 Tabacalera SA-A $ 57,430
<C> <S> <C>
MISCELLANEOUS FOOD PREPARATIONS
10,515 Telefonica (a) 486,977
COMMUNICATIONS SERVICES
4,195 Union Electrica Fenosa SA (a) 54,119
ELECTRIC SERVICES
------------
2,285,842
------------
Sweden (2.8%)
5,970 Abb AB-A (a) 84,591
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
11,710 Astra AB A-F 239,341
DRUGS
2,300 Astra AB B 45,856
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
1,300 Atlas Copco AB A Free (a) 35,455
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
223 Balder-Units (a) 2,223
FOREIGN BANKING
4,500 Electrolux 77,304
HOUSEHOLD APPLIANCES
16,000 Ericsson AB B Free 467,462
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
1,000 Euroc Industriab Ser A Fr (a) 43,260
NONCLASSIFIABLE ESTABLISHMENTS
1,870 Hennes And Mauritz (a) 119,352
FAMILY CLOTHING STORES
1,000 Securitas AB-B (a) 48,966
MISCELLANEOUS BUSINESS SERVICES
6,500 Skandia Forsakrings AB Free 92,916
INSURANCE AGENTS, BROKERS, AND SERVICE
6,200 Skandinaviska Enskilda Bankn-A (a) 106,120
FOREIGN BANKING
1,400 Skanska B Free (a) 62,847
REAL ESTATE AGENTS AND MANAGERS
3,200 Stora Kopparbergs Bergs-A Sh (a) 50,357
OTHER
2,800 Svenska Cellulosa AB-'B' Fria (a) 72,502
OTHER
2,230 Svenska Handelsbanken 103,461
FOREIGN BANKING
2,900 Volvo Aktiebolag B Free (a) 86,364
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
1,500 Volvo Akttiebolag-A Shares (a) 43,637
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
------------
1,782,014
------------
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
Switzerland (8.4%)
80 Abb AG (a) $ 118,143
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
190 Adecco SA 85,680
SERVICES
950 Adecco SA Rights (a) 2,596
SERVICES
60 Alusuis-Lonza Holding 76,107
MISCELLANEOUS MANUFACTURING INDUSTRIES
2,200 Credit Suisse Group-Reg (a) 489,514
FOREIGN BANKING
70 Gebruder Sulzer AG (a) 55,241
MACHINERY, EQUIPMENT, AND SUPPLIES
70 Holderbank Finan Glaris-B (a) 89,068
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
380 Nestle 813,206
MISCELLANEOUS FOOD PREPARATIONS
60 Novartis AG-Bearer (a) 99,920
DRUGS
610 Novartis AG-Reg (a) 1,015,050
DRUGS
711 Roche Holding AG - Genusschein 698,226
DRUGS
150 Roche Holdings AG (a) 222,268
CHEMICALS AND ALLIED PRODUCTS
80 S.M.H. AG-Bearers (a) 61,814
ELECTRONIC COMPONENTS AND ACCESSORIES
300 S.M.H. AG-Registered 10Sfr 50,039
ELECTRONIC COMPONENTS AND ACCESSORIES
150 Sairgroup 49,347
AIR TRANSPORTATION & COURIER SERVICES
140 Schw Rueckversicherungs-Reg (a) 354,058
INSURANCE CARRIERS
20 SGS Soc Gen Surveillance-B 33,900
SERVICES
1,954 Union Bank Of Switzerland (a) 726,504
FOREIGN BANKING
430 Zurich Versicherungs-Reg (a) 274,418
INSURANCE CARRIERS
------------
5,315,099
------------
United Kingdom (21.3%)
11,615 Abbey National (a) 206,393
FOREIGN BANKING
3,405 Anglian Water PLC (a) 47,722
WATER SUPPLY
5,995 Argos PLC (a) 63,317
RETAIL STORES
12,470 Arjo Wiggins Appleton PLC (a) 41,819
PAPER AND PAPER PRODUCTS
</TABLE>
- ---------
38
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
9,030 Associated British Foods $ 85,201
<C> <S> <C>
MISCELLANEOUS FOOD PREPARATIONS
28,160 B.A.T. Industries (a) 281,910
CHEWING AND SMOKING TOBACCO AND SNUFF
13,035 Barclay's PLC 375,820
COMMERCIAL BANKS
8,147 Bass PLC 152,652
EATING AND DRINKING PLACES
6,920 BBA Group (a) 52,072
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
35,250 BG PLC New Shs 203,791
GAS PRODUCTION AND DISTRIBUTION
8,690 Blue Circle Industries PLC 49,079
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
4,890 Boc Group (a) 66,618
CHEMICALS AND ALLIED PRODUCTS
9,310 Boots Co. PLC (a) 154,250
RETAIL STORES
7,120 BPB Industries (a) 43,123
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
16,840 British Aerospace PLC 128,967
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
10,930 British Airways PLC 118,265
MISCELLANEOUS TRANSPORTATION SERVICES
4,850 British Land Company PLC (a) 49,808
REAL ESTATE AGENTS AND MANAGERS
52,135 British Petroleum Co. PLC (a) 760,264
CRUDE PETROLEUM AND NATURAL GAS
18,320 British Sky Broadcasting PLC (a) 131,589
COMMUNICATIONS SERVICES
23,960 British Steel (a) 52,669
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
57,195 British Telecommunications PLC (a) 706,181
TELEPHONE COMMUNICATIONS
33,426 BTR Limited 94,810
MISCELLANEOUS MANUFACTURING INDUSTRIES
4,440 Burmah Castrol PLC (a) 79,267
CRUDE PETROLEUM AND NATURAL GAS
18,380 Cable & Wireless (a) 223,255
TELEPHONE COMMUNICATIONS
8,740 Cadbury Schweppes PLC (a) 135,254
MISCELLANEOUS FOOD PREPARATIONS
9,455 Carlton Communications (a) 84,399
COMMUNICATIONS SERVICES
37,950 Centrica PLC (a) 63,950
GAS PRODUCTION AND DISTRIBUTION
5,965 Commercial Union (a) 111,270
INSURANCE CARRIERS
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
9,135 Courtaulds PLC (a) $ 67,749
CHEMICALS AND ALLIED PRODUCTS
34,378 Diageo PLC 407,252
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
6,015 Electrocomponents PLC (a) 47,169
ELECTRONIC COMPONENTS AND ACCESSORIES
11,442 Elementis New (a) 29,018
CHEMICALS AND ALLIED PRODUCTS
9,415 EMI Group PLC (a) 82,314
PHOTOGRAPHIC STUDIOS
13,900 FKI Babcock (a) 40,122
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
27,535 General Electric PLC (a) 237,291
ELECTRONIC COMPONENTS AND ACCESSORIES
8,200 GKN PLC 104,459
MOTOR VEHICLES, PARTS AND SUPPLIES
32,895 Glaxo Wellcome PLC 987,386
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
8,050 Granada Group PLC 148,014
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
9,800 Great Universal Stores 129,175
RETAIL STORES
9,557 Guardian Royal Exchange 55,970
INSURANCE CARRIERS
12,010 Hanson Trust PLC (New) Stg 2.0 72,991
MISCELLANEOUS MANUFACTURING INDUSTRIES
14,465 HSBC Holdings PLC 350,438
FOREIGN BANKING
6,555 HSBC Holdings PLC 166,351
FOREIGN BANKING
6,630 I M I PLC (a) 41,040
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
7,240 Imperial Chemical Industries (a) 116,209
CHEMICALS AND ALLIED PRODUCTS
17,115 J. Sainsbury PLC (a) 152,490
MISCELLANEOUS FOOD STORES
4,055 Johnson Matthey Public Limited (a) 36,400
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
6,440 Kingfisher PLC (a) 103,690
RETAIL STORES
13,790 Ladbroke Group (a) 75,697
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
4,730 Land Securities PLC (a) 73,119
REAL ESTATE AGENTS AND MANAGERS
10,560 Legal And General Group PLC (a) 112,675
INVESTMENT OFFICES
</TABLE>
39-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
48,695 Lloyds Tsb Group PLC (a) $ 681,258
<C> <S> <C>
FOREIGN BANKING
11,000 London & Scotland Marine Oil (a) 44,048
OIL AND GAS FIELD SERVICES
16,665 Lucasvarity (a) 66,177
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
23,955 Marks & Spencer PLC Eng (a) 218,029
RETAIL STORES
5,340 MEPC PLC (a) 46,954
REAL ESTATE AGENTS AND MANAGERS
11,360 National Grid Group PLC (a) 76,574
ELECTRIC SERVICES
12,035 National Power PLC (New) (a) 113,253
ELECTRIC SERVICES
4,510 Next PLC (a) 38,753
RETAIL STORES
5,610 Pearson PLC (a) 102,776
COMMUNICATIONS SERVICES
7,165 Peninsular & Orient Steam (a) 103,170
MISCELLANEOUS TRANSPORTATION SERVICES
16,940 Pilkington PLC (a) 31,231
FLAT GLASS
19,980 Prudential Corp. (a) 263,193
LIFE INSURANCE
4,745 Railtrack Group PLC (a) 116,301
RAILROADS
11,675 Rank Group (a) 64,088
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
9,865 Reed International Ltd. British (a) 89,211
COMMUNICATIONS SERVICES
13,871 Reuters Group PLC (a) 158,534
SECURITIES & COMMODITIES EXCHANGE
SERVICES
8,555 Rexam PLC 37,290
PAPER AND PAPER PRODUCTS
8,330 Rio Tinto PLC (a) 93,815
METAL MINING SERVICES
3,385 RMC Group PLC (a) 58,681
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
15,580 Rolls Royce PLC (a) 64,338
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
15,005 Royal & Sun Alliance Insurance Group 155,096
INSURANCE CARRIERS
7,950 Royal Bank Of Scotland Group 137,952
FOREIGN BANKING
11,185 Safeway PLC (a) 73,248
MISCELLANEOUS FOOD STORES
2,745 Schroders PLC (a) 70,807
MISCELLANEOUS INVESTING
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
7,430 Scottish Newcastle Breweries (a) $ 105,126
EATING AND DRINKING PLACES
10,590 Scottish Power PLC (a) 92,764
ELECTRIC SERVICES
5,840 Slough Estates PLC (a) 33,422
REAL ESTATE AGENTS AND MANAGERS
46,980 Smithkline Beecham PLC (a) 573,391
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
4,090 Smiths Industries (a) 56,640
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
5,755 Southern Electric Plp Ord 53 (a) 52,044
ELECTRIC SERVICES
18,255 Tarmac PLC (a) 32,589
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,965 Tate & Lyle PLC (a) 55,229
SUGAR AND CONFECTIONERY PRODUCTS
18,680 Tesco PLC (a) 182,330
MISCELLANEOUS FOOD STORES
3,815 Thames Water PLC (a) 69,446
WATER SUPPLY
6,380 TI Group PLC Ord (a) 48,434
MISCELLANEOUS MANUFACTURING INDUSTRIES
27,305 Unilever PLC (a) 290,662
MISCELLANEOUS FOOD PREPARATIONS
5,710 United Utilities PLC (a) 83,029
WATER SUPPLY
24,950 Vodafone Group PLC 316,588
TELEPHONE COMMUNICATIONS
8,980 Williams PLC (a) 57,685
MISCELLANEOUS MANUFACTURING INDUSTRIES
7,125 Wolseley PLC (a) 41,846
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
7,530 Zeneca Group PLC (a) 323,140
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
------------
13,519,876
------------
Total common stocks
(cost $54,769,543) 61,774,975
------------
PREFERRED STOCK (.8%)
Australia (.2%)
16,176 News Corporation Ltd. 114,591
COMMERCIAL PRINTING
------------
Germany (.6%)
1,730 RWE (a) 74,374
MISCELLANEOUS MANUFACTURING INDUSTRIES
380 Sap AG Vorzug (a) 257,890
ELECTRIC SERVICES
</TABLE>
- ---------
40
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
105 Volkswagen AG (a) $ 71,550
<C> <S> <C>
MOTOR VEHICLE DEALERS
------------
403,814
------------
Total preferred stock
(cost $343,221) 518,405
------------
<CAPTION>
Principal
amount
- ----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (1.5%)
$ 140,000 U.S. Treasury Bill, Due August 20, 1998 139,043
183,000 U.S. Treasury Bill, Due July 30, 1998 182,277
U.S. Treasury Bill, Due September 10,
84,000 1998 83,183
U.S. Treasury Bill, Due September 17,
251,000 1998 248,319
U.S. Treasury Bill, Due September 3,
106,000 1998 105,073
192,000 U.S. Treausry Bill, Due August 27, 1998 190,507
------------
Total short-term investments
(cost $948,370) 948,402
------------
TOTAL INVESTMENTS (99.7%)
(cost $56,061,134) 63,241,782
------------
CASH AND OTHER ASSETS, LESS LIABILITIES (0.3%)
200,802
------------
NET ASSETS (100.0%) $ 63,442,584
------------
------------
</TABLE>
Notes:
(a) Non-income producting security.
At June 30, 1998, net unrealized appreciation of $7,180,648 consisted of gross
unrealized appreciation of $9,473,569 and gross unrealized depreciation of
$2,292,921 based on cost of $56,061,134 for federal income tax purposes.
INTERNATIONAL FUND INDUSTRY CLASSES
<TABLE>
<CAPTION>
Industry Value %
- ---------------------------------------- -------------- ------
<S> <C> <C>
Banks $ 9,192,809 14.49%
Machinery, Manufacturing & Construction 6,655,326 10.49%
Communications 6,490,607 10.23%
Consumer Goods & Services 6,230,803 9.82%
Retail 5,560,212 8.76%
Healthcare 4,709,060 7.42%
Mining & Refining 3,809,034 6.00%
Agriculture, Foods & Beverage 3,711,610 5.85%
Insurance 3,393,039 5.35%
Energy & Utilities 2,995,814 4.72%
Transportation 2,547,452 4.02%
Regulations 2,494,621 3.93%
Real Estate and Other Financial 2,131,136 3.36%
Chemicals 2,124,847 3.36%
Other 1,195,412 1.88%
-------------- ------
Total Common Stocks 63,241,782 99.68%
-------------- ------
Other Assets, Less Liabilities 200,802 0.32%
-------------- ------
Net Assets $ 63,442,584 100.00%
-------------- ------
-------------- ------
</TABLE>
See accompanying notes to financial statements.
41-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST STOCK & BOND BALANCED FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
- ------ --------
<C> <S> <C>
COMMON STOCKS (99.8%)
27,320 State Farm Variable Product Trust Bond
Fund $272,378
35,428 State Farm Variable Product Trust Large
Cap Equity Index Fund 417,698
--------
Total common stocks
(cost $680,156) 690,076
--------
TOTAL INVESTMENTS (99.8%)
(cost $680,156) 690,076
--------
CASH AND OTHER ASSETS, LESS LIABILITIES (0.2%)
1,711
--------
NET ASSETS (100.0%) $691,787
--------
--------
</TABLE>
Notes:
At June 30, 1998, net unrealized appreciation of $9,920 consisted entirely of
gross unrealized appreciation based on cost of $680,156 for federal income tax
purposes.
See accompanying notes to financial statements.
- ---------
42
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount rate date Value
- ---------- ------ ------------------ -----------
<C> <S> <C> <C> <C>
CORPORATE BONDS (83.4%)
Automotive (8.6%)
$ 500,000 Ford Motor Credit Co. 6.500% February 28, 2002 $ 506,830
500,000 Paccar Financial Corp. 5.970% November 15, 2001 499,725
-----------
1,006,555
-----------
Chemicals (4.3%)
500,000 EI Dupont De Nemours 6.000% March 6, 2003 500,890
-----------
Consumer & Marketing (5.6%)
150,000 Kimberly Clark Corp. 8.625% May 1, 2001 160,525
500,000 McDonald's Corporation 5.900% May 11, 2001 498,035
-----------
658,560
-----------
Electronic/Electrical Mfg. (4.3%)
500,000 Raytheon Co. 5.950% March 15, 2001 497,260
-----------
Financial Services (2.6%)
300,000 Associates Corp. of North
America 5.875% May 16, 2001 297,948
-----------
Forest Products (4.3%)
500,000 Mead Corporation 6.600% March 1, 2002 506,650
-----------
Health Care (4.2%)
500,000 Warner Lambert Co. 5.750% January 15, 2003 496,155
-----------
Machinery & Manufacturing (14.4%)
300,000 Allied Signal Inc. 9.875% June 1, 2002 341,004
400,000 Caterpillar Finance 6.750% July 10, 2001 409,380
900,000 TRW Inc. 6.725% July 11, 2007 933,669
-----------
1,684,053
-----------
Media & Broadcasting (7.7%)
406,000 The Walt Disney Company 6.375% March 30, 2001 411,903
500,000 Tribune Co. 5.750% September 15, 2003 493,745
-----------
905,648
-----------
Mining & Metals (4.3%)
500,000 Aluminum Company of America 6.125% June 15, 2005 505,885
-----------
Oil, Gas, & Other Energy (3.6%)
400,000 Mobil Corp. 8.375% February 12, 2001 424,344
-----------
Retailers (4.3%)
500,000 Sherwin Williams Co. 6.500% February 1, 2002 508,140
-----------
Telecom & Telecom Equipment (10.7%)
1,000,000 AT&T Corp. 7.000% May 15, 2005 1,051,940
200,000 Northern Telecom Ltd. 6.875% October 1, 2002 206,604
-----------
1,258,544
-----------
</TABLE>
43-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount rate date Value
- ---------- ------ ------------------ -----------
Utilities & Energy (4.5%)
<C> <S> <C> <C> <C>
$ 500,000 Virginia Electric & Power 7.375% July 1, 2002 $ 524,225
-----------
Total corporate bonds
(cost $9,786,834) 9,774,857
-----------
U.S. TREASURY GOVERNMENT NOTES (7.6%)
875,000 U.S. Treasury Notes
(cost $897,809) 6.875% March 31, 2000 894,539
-----------
SHORT-TERM INVESTMENTS (6.4%)
500,000 General Motors Acceptance
Corp. 5.630% July 9, 1998 500,470
250,000 General Electric Capital Corp. 5.620% July 2, 1998 250,234
-----------
Total short-term investments
(cost $750,704) 750,704
-----------
TOTAL INVESTMENTS (97.4%)
(cost $11,435,347) 11,420,100
-----------
CASH AND OTHER ASSETS, LESS LIABILITIES (2.6%) 305,797
-----------
NET ASSETS (100.0%) $11,725,897
-----------
-----------
</TABLE>
Notes:
At June 30, 1998, net unrealized depreciation of $15,247 consisted of gross
unrealized appreciation of $12,291 and gross unrealized depreciation of $27,538
based on cost of $11,435,347 for federal income tax purposes.
See accompanying notes to financial statements.
- ---------
44
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount Rate date Value
- ---------- ------ ------------------ -----------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (100.3%)
Agriculture, Foods, & Beverage (9.7%)
$ 530,000 Coca-Cola 5.480% September 4, 1998 $ 524,750
550,000 Sara Lee Corp. 5.600% July 14, 1998 548,888
-----------
1,073,638
-----------
Automotive (9.2%)
490,000 Ford Motor Credit Co. 5.510% July 27, 1998 492,487
530,000 General Motors Acceptance
Corp. 5.630% July 9, 1998 535,132
-----------
1,027,619
-----------
Chemicals (4.5%)
500,000 EI DuPont De Nemours 5.480% July 30, 1998 497,776
-----------
Computers (4.5%)
500,000 International Business
Machines Corp. 5.530% July 24, 1998 502,615
-----------
Electronic/Electrical Mfg. (4.9%)
540,000 General Electric Capital Corp. 5.620% July 2, 1998 541,075
-----------
Financial Services (4.8%)
530,000 Associates Corp. North America 5.570% August 21, 1998 530,656
-----------
Health Care (4.8%)
535,000 Abbott Laboratories 5.490% July 15, 1998 537,337
-----------
Machinery & Manufacturing (5.0%)
550,000 John Deere Credit Co. 5.580% September 16, 1998 550,597
-----------
Oil, Gas, & Other Energy (9.7%)
540,000 Chevron Corp. 5.520% July 2, 1998 540,000
545,000 Shell Oil Co. 5.470% July 30, 1998 542,591
-----------
1,082,591
-----------
Retailers (4.9%)
535,000 Sears Roebuck Acceptance Corp. 5.520% July 9, 1998 539,514
-----------
Telecom & Telecom Equipment (4.5%)
500,000 Ameritech Corp. 5.460% July 10, 1998 499,314
-----------
U.S. Government (33.8%)
149,000 Federal Home Loan Mortgage
Corp. 5.420% July 6, 1998 148,886
593,000 Federal Home Loan Mortgage
Corp. 5.440% July 31, 1998 590,303
735,000 Federal Home Loan Mortgage
Corp. 5.410% September 10, 1998 727,144
800,000 Federal National Mortgage
Association 5.400% July 15, 1998 798,307
1,500,000 Federal National Mortgage
Association 5.400% July 16, 1998 1,496,586
-----------
3,761,226
-----------
Total short-term investments
(cost $11,143,958) 11,143,958
-----------
TOTAL INVESTMENTS (100.3%)
(cost $11,143,958) 11,143,958
-----------
LIABILITIES, LESS CASH AND OTHER ASSETS (-0.3%) (32,193)
-----------
NET ASSETS (100.0%) $11,111,765
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
45-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Large Cap Small Cap International Stock & Bond Money
Equity Index Equity Index Equity Index Balanced Bond Market
Fund Fund Fund Fund Fund Fund
------------- ------------- -------------- ----------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments in
securities:
At identified cost $ 19,423,169 31,971,884 56,061,134 680,156 11,435,347 11,143,958
At value 22,179,061 33,468,591 63,241,782 690,076 11,420,100 11,143,958
Cash 122 19,690 480 12 147,810 89,122
Foreign currency
contracts -- -- 70,592 -- -- --
Receivable for:
Dividends and
interest 23,083 40,051 100,629 1,699 176,317 197
Shares of the Fund
sold 256,996 103,446 -- 28,712 136,525 28,431
Securities sold 50 -- -- -- -- 550,000
Expense cap
reimbursement -- 631 2,964 2,643 10,046 5,668
Tax reclaim -- -- 63,150 -- -- --
------------- ------------- -------------- ------- --------------- ---------------
280,129 144,128 166,743 33,054 322,888 584,296
------------- ------------- -------------- ------- --------------- ---------------
Prepaid expenses 3,394 1,086 -- -- 656 663
------------- ------------- -------------- ------- --------------- ---------------
Total assets 22,462,706 33,633,495 63,479,597 723,142 11,891,454 11,818,039
------------- ------------- -------------- ------- --------------- ---------------
Liabilities and Net
Assets
Dividends and Capital
Gains payable to
shareowners -- -- -- -- 142,220 136,848
Payable for:
Securities purchased 488,129 117,834 -- 28,712 -- 548,802
Other accounts
payable 24,456 47,791 37,013 2,643 23,337 20,624
(including payable
to Manager) 11,309 32,518 -- -- 12,704 10,215
------------- ------------- -------------- ------- --------------- ---------------
Total liabilities 512,585 165,625 37,013 31,355 165,557 706,274
------------- ------------- -------------- ------- --------------- ---------------
Net assets applicable to
shares outstanding
of common stock 21,950,121 33,467,870 63,442,584 691,787 11,725,897 11,111,765
------------- ------------- -------------- ------- --------------- ---------------
Fund shares outstanding 1,862,031 3,173,585 5,590,135 65,371 1,176,388 11,111,765
Net asset value, offering
price and redemption
price per share $ 11.79 10.55 11.35 10.58 9.97 1.00
------------- ------------- -------------- ------- --------------- ---------------
------------- ------------- -------------- ------- --------------- ---------------
Analysis of Net Assets
Excess of amounts
received from sales
of shares over
amounts paid on
redemptions of shares
on account of capital 19,171,653 31,861,021 56,117,816 681,482 11,758,837 11,111,765
Accumulated net
realized gain (loss)
on sales
of investments and
foreign currency
transactions 5,339 98,040 34,624 (91) (17,693) --
Net unrealized
appreciation
(depreciation)
of investments and
assets in foreign
currencies 2,755,892 1,496,707 7,182,034 9,920 (15,247) --
Undistributed net
investment income 17,237 12,102 108,110 476 -- --
------------- ------------- -------------- ------- --------------- ---------------
Net assets applicable
to shares outstanding $ 21,950,121 33,467,870 63,442,584 691,787 11,725,897 11,111,765
------------- ------------- -------------- ------- --------------- ---------------
------------- ------------- -------------- ------- --------------- ---------------
</TABLE>
See accompanying notes to financial statements.
- ---------
46
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF OPERATIONS
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Large Cap Small Cap International Stock & Bond Money
Equity Index Equity Index Equity Index Balanced Bond Market
Fund Fund Fund Fund Fund Fund
------------- ------------- -------------- ----------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 122,529 181,068 744,922 3,212 -- --
Interest 13,393 23,717 55,697 12 266,598 244,048
------------- ------------- -------------- ------ ------------- -------------
135,922 204,785 800,619 3,224 266,598 244,048
Less: foreign
withholding taxes (916) (44) -- -- -- --
------------- ------------- -------------- ------ ------------- -------------
Total investment income 135,006 204,741 800,619 3,224 266,598 244,048
Expenses:
Investment advisory and
management fees 18,779 53,307 145,420 -- 21,982 17,015
Fund accounting expense -- -- 24,058 -- -- --
Audit fees 4,635 4,524 6,576 2,112 4,635 4,553
Legal fees 154 185 285 -- 137 139
ICI dues 232 453 877 -- 173 171
Registration fees -- -- 557 -- -- --
Fidelity bond expense 334 524 888 575 264 257
Trustees' fees 2,560 2,563 3,102 2,420 2,560 2,564
Reports to shareowners 695 678 658 211 695 682
Security evaluation
fees 4,245 11,314 19,069 -- 461 115
Franchise taxes -- -- 929 -- -- --
Custodian fees -- -- 38,863 -- 4,635 4,553
Index license fees 2,423 2,604 4,959 -- -- --
------------- ------------- -------------- ------ ------------- -------------
Total expenses 34,057 76,152 246,241 5,318 35,542 30,049
Less: expense
reimbursement 5,434 8,460 49,886 5,318 8,033 8,956
------------- ------------- -------------- ------ ------------- -------------
Net expenses 28,623 67,692 196,355 -- 27,509 21,093
------------- ------------- -------------- ------ ------------- -------------
Net investment income 106,383 137,049 604,264 3,224 239,089 222,955
Realized and unrealized
gain (loss) on
investments:
Accumulated net
realized gain (loss)
on sales of
investments and
foreign currency
transactions 5,339 98,040 34,624 (91) (17,693) --
Net unrealized
appreciation
(depreciation) 2,755,892 1,496,707 7,182,034 9,920 (15,247) --
------------- ------------- -------------- ------ ------------- -------------
Net realized and
unrealized gain (loss)
on investments 2,761,231 1,594,747 7,216,658 9,829 (32,940) --
------------- ------------- -------------- ------ ------------- -------------
Net change in net assets
resulting from
operations $2,867,614 1,731,796 7,820,922 13,053 206,149 222,955
------------- ------------- -------------- ------ ------------- -------------
------------- ------------- -------------- ------ ------------- -------------
</TABLE>
See accompanying notes to financial statements.
47-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
For the period from the Large Cap Small Cap International Stock & Bond Money
date of inception Equity Index Equity Index Equity Index Balanced Bond Market
to June 30, 1998 Fund Fund Fund Fund Fund Fund
(inception date in ------------- ------------- -------------- ----------------- --------------- ---------------
parentheses) 1/22/98 1/29/98 1/22/98 1/29/98 1/22/98 1/29/98
- ------------------------- ------------- ------------- -------------- ----------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income $ 106,383 137,049 604,264 3,224 239,089 222,955
Accumulated net
realized gain (loss)
on sales of
investments and
foreign currency
transactions 5,339 98,040 34,624 (91) (17,693) --
Net unrealized
appreciation
(depreciation) 2,755,892 1,496,707 7,182,034 9,920 (15,247) --
------------- ------------- -------------- ------- --------------- ---------------
Net change in net assets
resulting from
operations 2,867,614 1,731,796 7,820,922 13,053 206,149 222,955
Distributions to
shareowners from:
Net investment income 89,148 124,947 496,154 2,748 239,089 222,955
------------- ------------- -------------- ------- --------------- ---------------
Total distributions to
shareowners 89,148 124,947 496,154 2,748 239,089 222,955
From Fund share
transactions:
Proceeds from shares
sold 4,104,713 1,737,335 1,626,890 691,988 1,542,764 965,141
Reinvestment of net
investment income
dividends and capital
gain distributions 89,148 124,947 496,154 2,748 239,089 222,955
------------- ------------- -------------- ------- --------------- ---------------
4,193,861 1,862,282 2,123,044 694,736 1,781,853 1,188,096
Less payments for
shares redeemed 22,206 1,261 5,228 13,354 23,016 76,331
------------- ------------- -------------- ------- --------------- ---------------
Net increase in net
assets from Fund share
transactions 4,171,655 1,861,021 2,117,816 681,382 1,758,837 1,111,765
------------- ------------- -------------- ------- --------------- ---------------
Total increase in net
assets 6,950,121 3,467,870 9,442,584 691,687 1,725,897 1,111,765
------------- ------------- -------------- ------- --------------- ---------------
Net assets:
Beginning of period 15,000,000 30,000,000 54,000,000 100 10,000,000 10,000,000
------------- ------------- -------------- ------- --------------- ---------------
End of period + $ 21,950,121 33,467,870 63,442,584 691,787 11,725,897 11,111,765
------------- ------------- -------------- ------- --------------- ---------------
------------- ------------- -------------- ------- --------------- ---------------
+ Includes undistributed
net investment income
of $ 17,237 12,102 108,110 476 -- --
------------- ------------- -------------- ------- --------------- ---------------
------------- ------------- -------------- ------- --------------- ---------------
</TABLE>
See accompanying notes to financial statements.
- ---------
48
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Objective
The State Farm Variable Product Trust is an open-end management investment
company consisting of six separate investment portfolios of funds (the "Funds"),
each of which has a different investment objective. The Funds are offered to
separate accounts of State Farm Life Insurance Company as funding vehicles for
certain variable annuity and life insurance contracts issued by State Farm Life
Insurance Company through such separate accounts. The Trust also intends to
offer shares of each Fund to separate accounts of State Farm Life and Accident
Assurance Company as funding vehicles for certain variable annuity and life
insurance contracts issued by State Farm Life and Accident Assurance Company
through such separate accounts.
The Large Cap Equity Index Fund seeks to match the performance of the Standard
and Poor's-Registered Trademark- Composite Index of 500 Stocks (the "S&P 500").
This Fund will pursue its objective by investing primarily on a
capitalization-weighted basis in the securities comprising the index.
The Small Cap Equity Index Fund seeks to match the performance of the Russell
2000-Registered Trademark- Small Stock Index (the "Russell 2000"). This Fund
will pursue its objective by investing primarily in a diversified portfolio of
stocks found in the index.
The International Equity Index Fund seeks to match the performance of the Morgan
Stanley Capital International Europe, Australia and Far East Free Index (the
"EAFE-Registered Trademark- Free"). This Fund will pursue its objective by
investing primarily in a diversified portfolio of stocks found in the index.
The Stock and Bond Balanced Fund seeks long-term growth of capital, balanced
with current income. This Fund will pursue its objective by investing primarily
in the Trust's Large Cap Equity Index Fund and Bond Fund.
The Bond Fund seeks to realize over a period of years the highest yield
consistent with prudent investment management through current income and capital
gains. This Fund will pursue its objective by investing primarily in high
quality debt securities and U.S. Government securities.
The Money Market Fund seeks to maximize current income to the extent consistent
with the preservation of capital and maintenance of liquidity. This Fund will
pursue its objective by investing exclusively in high quality money market
instruments.
2. Significant accounting policies
SECURITY VALUATION
Investments are stated at market value. Stocks traded on securities exchanges,
or in the over-the-counter market in which transaction prices are reported, are
valued at the last sales prices on the day of valuation, or, if there are no
reported sales on that day, at the last reported bid price for the day.
Portfolio securities that are primarily traded on foreign securities exchanges
are generally valued at the preceding closing values of such securities on their
respective exchanges where primarily traded. Long-term debt securities and U.S.
Treasury bills are valued using quotations provided by an independent pricing
service. All of the securities and assets of the Money Market Fund and
short-term debt securities with remaining maturities of 60 days or less (other
than U.S. Treasury bills) held by any of the other Funds are valued on an
amortized cost basis, which approximates market value. Any securities not valued
as described above are valued at fair value as determined in good faith by the
Board of Trustees or its delegate.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on trade date (date the order to buy or
sell is executed) and dividend income is recorded on the ex-dividend date,
except that certain dividends from foreign securities are recorded as soon as
the information is available to the Funds. Interest income is recorded on the
accrual basis and includes amortization of discounts on money market instruments
and long term debt instruments when required for federal income tax purposes.
Realized gains and losses from security transactions are reported on an
identified cost basis.
FUND SHARE VALUATION
Fund shares are sold and redeemed on a continuous basis at net asset value. Net
asset value per share is determined daily as of the time of the close of trading
on the New York Stock Exchange, (currently 4:00 p.m., New York City time) on
each day when the New York Stock Exchange is open, other than those days
specifically stated in the Trust's prospectus, except that a Fund need not
compute a net asset value on any day when no purchase or redemption order has
been received by the Fund. The net asset value per share is computed by dividing
the total value of the Fund's investments and other assets, less liabilities, by
the respective number of Fund shares outstanding.
49-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
FEDERAL INCOME TAXES, DIVIDENDS AND DISTRIBUTIONS TO SHAREOWNERS
It is the Trust's policy to comply with the special provisions of the Internal
Revenue Code available to investment companies and, in the manner provided
therein, to distribute all of its taxable income, as well as any net realized
gain on sales of investments reportable for federal income tax purposes. The
Trust intends to comply with this policy and, accordingly, no provision for
federal income taxes has been made.
Dividends and distributions payable to its shareowners will be recorded by the
Funds on their respective ex-dividend dates.
The accumulated net realized loss on sales of investments in the Bond Fund at
June 30, 1998, amounting to $17,693, is available to offset future taxable
gains. If not applied, the capital loss carryover will expire in 2005.
FOREIGN CURRENCY TRANSLATIONS
Values of investments denominated in foreign currencies are converted into U.S.
dollars using the spot market rate of exchange at the time of valuation.
Purchases and sales of investments and dividend and interest income are
translated into U.S. dollars using the spot market rate of exchange prevailing
on the respective dates of such transactions. The gain or loss resulting from
changes in foreign exchange rates is included with net realized and unrealized
gain or loss from investments, as appropriate.
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 amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
FINANCIAL INSTRUMENTS
The Large Cap, Small Cap, and International Equity Index Funds may invest in
stock index futures contracts and options on such futures contracts. These are
contracts that obligate a Fund to make or take delivery of a financial
instrument or the cash value of a securities index at a specified future date at
a specified price. The Funds may enter into such contracts to hedge a portion of
their portfolio. Gains and losses would be reflected as "Net Realized Gain
(Loss) on Futures" in the Statement of Operations. Additionally, the
International Equity Index Fund may engage in portfolio hedging with respect to
changes in currency exchange rates by entering into forward foreign currency
contracts to purchase or sell foreign currencies. The Fund bears the market risk
that arises from changes in the value of financial instruments and securities
indices (futures contracts) or from changes in foreign currency rates (forward
foreign currency contracts) and the credit risk should a counterparty fail to
perform under such contracts.
The Large Cap, Small Cap, and International Equity Index Funds did not enter
into any futures contracts during the period ended June 30, 1998.
The International Equity Index Fund had the following open forward foreign
currency contracts at June 30, 1998:
<TABLE>
<CAPTION>
Foreign U.S. Dollar Unrealized
Amount Currency Proceeds Gain/Loss
- --------- -------------------- ------------ -----------
<C> <S> <C> <C>
6,453,571 Japanese Yen $45,298 $1,221
26,924 French Franc 4,429 23
2,066 Great British Pound 3,429 18
910 Swiss Franc 596 4
383 German Deutsche Mark 211 1
6 Netherlands Guilder 3 0
787,500 Portuguese Escudo 4,308 (46)
Total $1,221
</TABLE>
3. Transactions with affiliates
The Trust has an investment advisory and management services agreement with
State Farm Investment Management Corp. (Manager) who serves as the Trust's
investment adviser and conducts the business and affairs of the Trust. Each Fund
pays the Manager an investment advisory fee (computed on a daily basis and paid
quarterly) at the following annual rates:
<TABLE>
<S> <C>
Large Cap Equity Index Fund .26% of net assets
Small Cap Equity Index Fund .40% of net assets
International Equity Index Fund .55% of net assets
Bond Fund .50% of net assets
Money Market Fund .40% of net assets
Stock and Bond Balanced Fund None
</TABLE>
The Manager has agreed not to be paid an investment advisory fee for performing
its services for the Stock and Bond Balanced Fund and has agreed to bear any
other expenses incurred by the Stock and Bond Balanced Fund. This expense
limitation arrangement is voluntary and may be eliminated by the Manager at any
time. However, the Manager will receive investment advisory fees from managing
the underlying Funds in which the Stock and Bond Balanced Fund invests.
- ---------
50
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
With respect to each of the Funds other than the Stock and Bond Balanced Fund
and the International Equity Index Fund, the Manager has agreed to bear the
expenses incurred by the Fund, other than the investment advisory fee, that
exceed .10% of such Fund's average daily net assets. With respect to the
International Equity Index Fund, the Manager has agreed to bear the expenses
incurred by the Fund, other than the investment advisory fee, that exceed .20%
of the Fund's average daily net assets. These expense limitation arrangements
are voluntary and may be eliminated by the Manager at any time.
Under the terms of this agreement, the Funds incurred the following fees for the
period ended June 30, 1998:
<TABLE>
<CAPTION>
Investment Advisory
Fund and Management Fee
- -------------------------------------------------- -------------------
<S> <C>
Large Cap Equity Index Fund $ 18,779
Small Cap Equity Index Fund 53,307
International Equity Index Fund 145,420
Bond Fund 21,982
Money Market Fund 17,015
Stock and Bond Balanced Fund --
</TABLE>
The Funds do not pay any discount, commission or other compensation for transfer
agent or underwriting services provided by the Manager.
Certain officers and/or trustees of the Trust are also officers and/or directors
of the Manager. The Funds made no payments to its officers or trustees during
the period ended June 30, 1998 except for the following trustees' fees paid to
the Trust's independent trustees:
<TABLE>
<S> <C>
Large Cap Equity Index Fund $2,100
Small Cap Equity Index Fund 2,100
International Equity Index Fund 2,100
Bond Fund 2,100
Money Market Fund 2,100
Stock and Bond Balanced Fund 2,100
</TABLE>
The Manager has engaged Barclays Global Fund Advisors (Barclay's) as the
investment sub-advisor to provide day-to-day portfolio management for the Large
Cap, Small Cap, and International Equity Index Funds ("index Funds"). Barclay's
determines which securities to buy and sell for each of these Funds, selects the
brokers and dealers to effect the transactions, and negotiates commissions. For
its services, the Manager pays Barclay's an investment sub-advisory fee equal to
a percentage of the average daily net assets of each index Fund.
51-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
The fee is accrued daily and paid to Barclay's quarterly. The rates upon which
the fee is based are as follows:
<TABLE>
<S> <C>
Large Cap Equity Index Fund .15% of the first $50,000,000
of net assets
.09% of the next $50,000,000 of net assets
.07% thereafter
Small Cap Equity Index Fund .20% of the first $50,000,000
of net assets
.14% of the next $50,000,000 of net assets
.11% thereafter
International Equity Index Fund .35% of the first $50,000,000
of net assets
.30% of the next $50,000,000 of net assets
.20% thereafter
</TABLE>
Under the terms of this agreement, the Manager pays the sub-advisory fee to
Barclay's. The Funds do not incur any additional expense (above the investment
advisory fee paid to the Manager) for the sub-advisory services.
4. Investment transactions
Investment transactions (exclusive of short-term instruments) for the period
ended June 30, 1998 are as follows:
<TABLE>
<CAPTION>
Fund Purchases at Cost Sales at Proceeds
- ---------------------------------------- ------------------ ------------------
<S> <C> <C>
Large Cap Equity Index Fund $ 19,255,191 373,390
Small Cap Equity Index Fund 33,532,169 1,938,069
International Equity Index Fund 56,623,784 1,628,903
Stock & Bond Balanced Fund 693,595 13,347
Bond Fund 13,806,311 3,078,928
</TABLE>
5. Fund share transactions
Proceeds and payments on Fund shares as shown in the statements of changes in
net assets for the period ended June 30, 1998 are in respect of the following
number of shares:
<TABLE>
<CAPTION>
Large Cap Small Cap International Stock & Bond Money
Equity Index Equity Index Equity Index Balanced Bond Market
Fund Fund Fund Fund Fund Fund
------------ ------------ ------------- ---------------- ------ --------------
Shares Shares Shares Shares Shares Shares
------------ ------------ ------------- ---------------- ------ --------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 356,005 161,230 145,727 66,370 154,674 965,140
Shares issued in
reinvestment of
ordinary
income dividends and
capital gain
distributions 7,959 12,470 46,500 268 24,030 222,956
------ ------ ------ ----- ------ --------------
363,964 173,700 192,227 66,638 178,704 1,188,096
Less shares redeemed 1,933 115 2,092 1,277 2,316 76,331
------ ------ ------ ----- ------ --------------
Net increase in shares
outstanding 362,031 173,585 190,135 65,361 176,388 1,111,765
------ ------ ------ ----- ------ --------------
------ ------ ------ ----- ------ --------------
</TABLE>
- ---------
52
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
Per Share Income and Capital Changes (For a share outstanding throughout the
period)
<TABLE>
<CAPTION>
Period ended
June 30, 1998
(Unaudited)
--------------
<S> <C>
Net asset value, beginning of period (inception
date of 1/22/98) $ 10.00
Income from Investment Operations
Net investment income .06
Net gain on securities (both realized and
unrealized) 1.78
--------------
Total from investment operations 1.84
Less Distributions
Dividends (from net investment income) (.05)
--------------
Total distributions (.05)
--------------
Net asset value, end of period $ 11.79
--------------
--------------
Total Return 18.43%
Ratios/Supplemental Data
Net assets, end of period $21,950,121
Ratio of expenses to average net assets 0.36%(a)
Ratio of expenses to average net assets, absent of
expense limitation 0.43%(a)
Ratio of net investment income to average net
assets 1.34%(a)
Portfolio turnover rate 4.76%(a)
Number of shares outstanding at end of period 1,862,031
</TABLE>
- ----------
(a) Determined on an annualized basis.
53-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
Per Share Income and Capital Changes (For a share outstanding throughout the
period)
<TABLE>
<CAPTION>
Period ended
June 30, 1998
(Unaudited)
--------------
<S> <C>
Net asset value, beginning of period (inception
date of 1/29/98) $ 10.00
Income from Investment Operations
Net investment income .04
Net gain on securities (both realized and
unrealized) .55
--------------
Total from investment operations .59
--------------
Less Distributions
Dividends (from net investment income) (.04)
--------------
Total distributions (.04)
--------------
Net asset value, end of period $ 10.55
--------------
--------------
Total Return 5.92%
Ratios/Supplemental Data
Net assets, end of period $33,467,870
Ratio of expenses to average net assets 0.50%(a)
Ratio of expenses to average net assets, absent of
expense limitation 0.56%(a)
Ratio of net investment income to average net
assets 1.01%(a)
Portfolio turnover rate 12.10%(a)
Number of shares outstanding at end of period 3,173,585
</TABLE>
- ----------
(a) Determined on an annualized basis.
- ---------
54
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
Per Share Income and Capital Changes (For a share outstanding throughout the
period)
<TABLE>
<CAPTION>
Period ended
June 30, 1998
(Unaudited)
--------------
<S> <C>
Net asset value, beginning of period (inception
date of 1/22/98) $ 10.00
Income from Investment Operations
Net investment income .11
Net gain on securities (both realized and
unrealized) 1.33
--------------
Total from investment operations 1.44
--------------
Less Distributions
Dividends (from net investment income) (.09)
--------------
Total distributions (.09)
--------------
Net asset value, end of period $ 11.35
--------------
--------------
Total Return 14.46%
Ratios/Supplemental Data
Net assets, end of period $63,442,584
Ratio of expenses to average net assets 0.75%(a)
Ratio of expenses to average net assets, absent of
expense limitation 0.93%(a)
Ratio of net investment income to average net
assets 2.30%(a)
Portfolio turnover rate 5.38%(a)
Number of shares outstanding at end of period 5,590,135
</TABLE>
- ----------
(a) Determined on an annualized basis.
55-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST STOCK & BOND BALANCED FUND
FINANCIAL HIGHLIGHTS
Per Share Income and Capital Changes (For a share outstanding throughout the
period)
<TABLE>
<CAPTION>
Period ended
June 30, 1998
(Unaudited)
--------------
<S> <C>
Net asset value, beginning of period (inception
date of 1/29/98) $ 10.00
Income from Investment Operations
Net investment income .06
Net gain on securities (both realized and
unrealized) .57
-------
Total from investment operations .63
-------
Less Distributions
Dividends (from net investment income) (.05)
-------
Total distributions (.05)
-------
Net asset value, end of period $ 10.58
-------
-------
Total Return 6.96%
Ratios/Supplemental Data
Net assets, end of period $691,787
Ratio of expenses to average net assets, absent of
expense limitation 6.40%(a)
Ratio of net investment income to average net
assets 3.88%(a)
Portfolio turnover rate 9.70%(a)
Number of shares outstanding at end of period 65,371
</TABLE>
- ----------
(a) Determined on an annualized basis.
- ---------
56
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
FINANCIAL HIGHLIGHTS
Per Share Income and Capital Changes (For a share outstanding throughout the
period)
<TABLE>
<CAPTION>
Period ended
June 30, 1998
(Unaudited)
--------------
<S> <C>
Net asset value, beginning of period (inception
date of 1/22/98) $ 10.00
Income from Investment Operations
Net investment income .23
Net loss on securities (both realized and
unrealized) (.03)
--------------
Total from investment operations .20
--------------
Less Distributions
Dividends (from net investment income) (.23)
--------------
Total distributions (.23)
--------------
Net asset value, end of period $ 9.97
--------------
--------------
Total Return 2.00%
Ratios/Supplemental Data
Net assets, end of period $11,725,897
Ratio of expenses to average net assets 0.60%(a)
Ratio of expenses to average net assets, absent of
expense limitation 0.78%(a)
Ratio of net investment income to average net
assets 5.24%(a)
Portfolio turnover rate 65.02%(a)
Number of shares outstanding at end of period 1,176,388
</TABLE>
- ----------
(a) Determined on an annualized basis.
57-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Per Share Income and Capital Changes (For a share outstanding throughout the
period)
<TABLE>
<CAPTION>
Period ended
June 30, 1998
(Unaudited)
--------------
<S> <C>
Net asset value, beginning of period (inception
date of 1/29/98) $ 1.00
Income from Investment Operations
Net investment income .02
--------------
Total from investment operations .02
--------------
Less Distributions
Dividends (from net investment income) (.02)
--------------
Total distributions (.02)
--------------
Net asset value, end of period $ 1.00
--------------
--------------
Total Return 2.14%
Ratios/Supplemental Data
Net assets, end of period $11,111,765
Ratio of expenses to average net assets 0.49%(a)
Ratio of expenses to average net assets, absent of
expense limitation 0.69%(a)
Ratio of net investment income to average net
assets 5.12%(a)
Number of shares outstanding at end of period 11,111,765
</TABLE>
- ----------
(a) Determined on an annualized basis.
- ---------
58
<PAGE>
NOTICE OF WITHHOLDING ELECTION
This notice does not apply to distributions which qualify as eligible
rollover distributions from tax-sheltered annuities (TSAs) and qualified
employer retirement plans. We may be required to withhold 20% federal income
tax on such eligible rollover distributions. To determine whether your
distribution qualifies as an eligible rollover distribution and whether
withholding applies, see the Special Tax Notice Regarding Plan Payments which
is enclosed in the quarterly statements for TSA and qualified employer
retirement plan participants.
Proceeds from your account not subject to the mandatory withholding described
above, may be subject to federal and state income tax withholding unless you
elect not to have withholding apply. Withholding will only apply to the
portion of your distribution that is included in your income subject to
federal income tax. There will be no withholding on non-taxable
distributions.
We are required by Federal Income Tax law to notify you of your right to
elect not to have taxes withheld from any actual or deemed distribution, or to
revoke your election to have taxes withheld, if one is in effect. If an
election has not been filed with us, we are required to withhold 10% of the
taxable amount of your distribution for federal income taxes.
You may have made a previous withholding election. If so, that election will
continue in force until you change your election. If you elect not to have
withholding apply to your distribution, or if you do not have enough federal
income tax withheld from your distribution, you may be responsible for
payment of estimated tax and you may incur penalties if your withholding and
estimated tax payments are not sufficient.
You may establish, change or revoke your Withholding Election at any time by
one of the following methods:
-complete and mail this form to:
STATE FARM VARIABLE PRODUCTS
ADMINISTRATION DEPARTMENT
P.O. BOX 2307
BLOOMINGTON, IL 61702-2307 or
-call our TOLL FREE NUMBER 1-888-702-2307 (if you have telephone
authority) or
-fax the election form to 1-309-735-0307 and mail the original to us.
If we receive your election using any of the above mentioned methods at least
10 days prior to your next scheduled payment, your next check will reflect the
change. Otherwise, the change will be reflected on any subsequent payments.
231-3537 8-97 Printed in U.S.A.
<PAGE>
WITHHOLDING ELECTION FORM
- --------------------------------------------------------------------------------
(Type or print your full name)
- --------------------------------------------------------------------------------
(Your Social Security Number)
- --------------------------------------------------------------------------------
(Home address-number & street or rural route)
- --------------------------------------------------------------------------------
(City or town, state and ZIP code)
- --------------------------------------------------------------------------------
(Policy Number)
- --------------------
(Date)
/ / 1. I elect NOT to have federal income tax withheld from my distribution
(Do not complete lines 2-4.)
If you elect not to have withholding apply to your distribution, or if you do
not have enough federal income tax withheld from your distribution, you may
be responsible for payment of estimated tax and you may incur penalties if
your withholding and estimated tax payments are not sufficient.
/ / 2. I want FEDERAL withholding from my distribution
If you would like an additional amount of federal withholding taken from the
taxable distribution amount, please indicate the additional withholding
amount (not less than $5.00) or percentage (not less than 10%)
- ----------
/ / 3. I elect not to have STATE income tax withheld from my distribution
/ / 4. I want STATE withholding from my distribution
If you would like an additional amount of state withholding taken from your
payment, please indicate the additional withholding amount $
---------------
(Note: not all states allow withholding or specify rates of withholding. If
you indicate withholding or an amount and reside in a state where withholding
is not allowed, no state tax will be withheld. If you do not indicate you
want withholding or specify an amount and reside in a state that requires
withholding at your request only, no state tax will be withheld.)
/ / 5. Other: (please specify)
-------------------------------------------------
-------------------------------------------------
- --------------------------------------------------------------------------------
(Participant's Signature)
- ------------------------
(Date)
Return your completed form to: STATE FARM VARIABLE PRODUCTS
ADMINISTRATION DEPARTMENT
P.O. BOX 2307
BLOOMINGTON, IL 61702-2307
<PAGE>
PRODUCTS
INSURANCE PRODUCTS AND SERVICES WE CAN PROVIDE*
LIFE INSURANCE RETIREMENT PLANNING
Family Insurance IRA (Individual Retirement Annuity)
Mortgage Life Insurance TSA (Tax Sheltered Annuity)
Estate Analysis Business Retirement Plans
(funded with life insurance)
Life Insurance for Business Owners
Universal Life Insurance HEALTH INSURANCE
Annuities Hospital Surgical
Final Expense Hospital Income
Second-to-Die Disability Income
Medicare Supplement
FIRE INSURANCE
Long-Term Care
Homeowners
Renters CAR INSURANCE
Mobile Homes Personal Cars
Manufactured Homes Business Cars
Business Motorcycles
Apartment Buildings Travel Trailers
Condominium/Association Fleets
Church Snowmobiles
Contractors Motorhomes
Rental Condominium Car Finance Plan
Commercial
Liability Umbrella Policies
Boatowners
Personal Articles Policy SERVICES
*All products and services may not be available in all states.
<PAGE>
You can only invest in our underlying funds through the purchase of a
Variable Universal Life Insurance policy or Variable Deferred Annuity policy.
This report and any financial information contained herein are submitted for
the general information of the owners of interest in State Farm Life
Insurance Company Variable Life Separate Account or State Farm Life Insurance
Company Variable Annuity Separate Account (the "Accounts"). This report is
not authorized for distribution to prospective investors in either Account
unless preceded or accompanied by an effective prospectus for the relevant
Account. Interests in the Accounts are not deposits or obligations of, or
guaranteed by, any bank or depository institution. Interests in the Accounts
are not insured by the Federal Deposit Insurance Corporation, Federal Reserve
Board or any other agency, and are subject to investment risks, including
possible loss of principal amount invested. For more information on either
Account, including charges and expenses, call or write for a free prospectus.
Read the prospectus carefully before you invest or send money.
[LOGO]
Issued By:
State Farm Life Insurance Company
(Not licensed in New York or Wisconsin)
State Farm Life and Accident Assurance Company
(Licensed in New York and Wisconsin)
Home offices: Bloomington, Illinois
State Farm VP Management Corp.
(Underwriter & Distributor of Variable Products)
One State Farm Plaza
Bloomington, Illinois 61710-0001
1-888/702-2307
231-3571
