<PAGE>
[PHOTOS]
JUNE 30 1999 SEMI-ANNUAL REPORT
STATE FARM VARIABLE PRODUCTS TRUST
[STATE FARM LOGO]
STATE FARM'S VARIABLE DEFERRED ANNUITY &
STATE FARM'S VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
SERVICE IS ONLY A PHONE CALL AWAY
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)
NOT * NO BANK GUARANTEE
FDIC * MAY LOSE VALUE
INSURED
Visit our homepage www.statefarm.com
<PAGE>
MESSAGE FROM ROGER TOMPKINS
This year, we celebrate our 70th anniversary of the State Farm Life Insurance
Company. We're proud to have dedicated 70 years of service to helping Americans
plan for the uncertainties of the future with a variety of life insurance
policies.
TABLE OF CONTENTS
<TABLE>
<S> <C>
The Economy and Markets 2
Portfolio of Investments
Large Cap Equity Index Fund 6
Small Cap Equity Index Fund 12
International Equity Index
Fund 32
Stock & Bond Balanced Fund 46
Bond Fund 47
Money Market Fund 50
Financial Statements
Statements of Assets and
Liabilities 52
Statements of Operations 54
Statements of Changes in Net
Assets 56
Notes to Financial Statements 58
Financial Highlights 63
Notice of Withholding Election
</TABLE>
This report must be accompanied or preceded by a prospectus.
Life insurance isn't for those who die, it's for those we leave behind. We
haven't forgotten that motto here at State Farm. We know no amount of money can
make up for the loss of a loved one, but we can try to help you ease the
financial burden and worries that follow the death of a family member, friend or
business partner.
[PHOTO]
We're also proud that once again, 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
every single policy -- to keep our promise to you. Please remember that the cash
value of the variable products will fluctuate based upon the value of the
underlying funds.
This is the semi-annual report on the funds underlying two of our newest
products -- Variable Universal Life Insurance and Variable Deferred Annuity.
These products may help provide valuable protection for you and your families.
Our Good Neighbor agents throughout the United States are ready to discuss your
insurance needs and to provide products to meet those needs. Consider an
insurance checkup with your agent to make sure your insurance needs keep pace
with changes in your lifestyle, your assets, or to your family.
Thank you for the confidence you've shown in the State Farm Life Insurance
Companies. We promise to provide the highest quality service and products,
backed by prudently managed investment portfolios and a company you can depend
on.
[/S/ ROGER TOMPKINS]
Executive Vice President
State Farm Life Insurance Company
1 -------
<PAGE>
MESSAGE TO VARIABLE PRODUCT CUSTOMERS FROM KURT MOSER
SENIOR VICE PRESIDENT OF STATE FARM INVESTMENT MANAGEMENT CORP.
Prices of stocks and bonds have moved in opposite directions so far in 1999.
Investors seem to perceive that general economic conditions and prospects for
growth of corporate profits are good or improving in most parts of the world.
Consequently,general stock prices have trended higher. Bond prices declined as
investors began to worry that the good economic background would increase
corporate demand for borrowed capital and cause inflation to rise. Fixed-income
markets have also begun to factor in actual and prospective tightening of
monetary conditions by central banks.
[PHOTO]
Diversified investments in common stocks traded in most markets of the developed
world have provided good returns since the end of 1994. Results achieved in the
United States have been particularly favorable. The first six months of 1999
extended this significant general trend.
The improvements in stock markets during the last six months occurred in spite
of substantial increases in market interest rates. In the United States, yields
on good quality bonds have risen around 100 basis points (a basis point is .01%)
since the end of 1998. As interest rates rise, values of bonds fall. Therefore,
prices of long-term bonds generally declined by an amount which exceeded their
interest income, and total returns for bond portfolios tended to be negative
over this short six-month period.
Dutifully we prepare this message for you every six months, and it is
appropriate that we do so. In it we regularly discuss what is occurring
recently. However, please do not interpret the discussion of recent occurrences
to mean that accumulating wealth through investments is a short-term process. We
feel you will be served best by viewing your investments in the suitable Funds
as long-term investments and regularly making periodic investments in the Funds
which match your objectives and tolerances for risk. Please remember that
periodic investing does not assure a profit and does not protect against loss in
declining markets. Additionally, please remember that variable products involve
the payment of fees and charges as described in the prospectus.
I have included discussions on the U.S. economy, U.S. equity market, U.S. bond
market and international economies and markets on pages 2 and 3.
[/S/ KURT R. MOSER]
------------------------
THE U.S. ECONOMY
The U.S. economy remains very healthy. The first estimate of real GDP for the
second quarter of 1999 puts growth at a 2.3% annual rate during the period. The
performance follows a 4.3% increase during the first quarter of 1999 and a heady
6.0% rise for the fourth quarter of 1998. The slowdown of general economic
activity over the last two quarters is not particularly bothersome. In fact, we
view the slowdown favorably since it reduces the risks that usually are
associated with an economy that is growing at a pace which is significantly
above its "natural" growth rate. If our economy grows at a sustainable pace and
productivity remains high, prospects for continuation of low inflation and good
general economic conditions improve.
Household spending continues to fuel the economy. Personal income is rising
nicely, and consumers seem to be spending all of that income and more.
Automobile and existing home sales remain particularly strong. Consumer
confidence is high as households feel good about high employment, strong stock
markets, and the availability of credit even though interest rates have been
rising recently.
The manufacturing sector is showing some further evidence of recovery from the
effects of very intense foreign competition which accompanied economic
difficulties in Asia last fall. The recovery in manufacturing reflects ongoing
strength in the U.S. economy, resumption of growth in much of Asia and an
improving inventory situation.
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%
1998 3.9% 1.6%
1999 3.3% 2.0%
</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.
- ---------
2
<PAGE>
THE U.S. EQUITY MARKET
The increase in general U.S. stock prices which began in 1995 continued over the
first six months of 1999. Substantial returns earned by the S&P 500 Index since
1994 are unprecedented in U.S. stock market history, and, in our opinion, are
not sustainable for long periods of time.
During the four-year period from 1995-98, returns of the
S&P 500 were generated primarily by a narrow group of stocks which are generally
categorized as large-capitalization growth stocks. Over the first six months of
1999 and particularly in the last three months or so, returns of the S&P 500
have been generated by a somewhat broader group of stocks. This wider
participation of stocks on the upside is found in higher valuations for the
stocks of smaller companies in recent months.
THE U.S. BOND MARKET
Sentiments in the U.S. bond market have shifted markedly since the end of 1998.
Fears of a global economic meltdown and desires for safety and liquidity have
faded. Presently, investors are focusing on the strong U.S. economy, evidence
that several foreign economies are improving somewhat and any economic data that
suggests inflationary pressures may be building. Reflecting this major change in
market psychology, interest rates on good quality taxable bonds have jumped
around 100 basis points (a basis point is .01%) over the past six months.
The Open Market Committee of the Federal Reserve reacted to strong domestic
economic conditions in the latter part of June by raising the federal funds rate
25 basis points. This increase in short-term interest rates was widely expected
because Federal Reserve officials had put the world on notice that monetary
policy would be tightened to help contain potential inflationary pressures which
might spring from our robust economy.
We feel the best news on inflation is probably over for this business cycle,
which is heading into its ninth year. However, few signs presently point to
dramatic increases in domestic inflation. With current U.S. interest rates being
among the highest in the developed world, fixed-income investors in our country
now seem to be adequately compensated for any expected inflation.
INTERNATIONAL ECONOMIES AND MARKETS
General economic conditions in virtually all other countries remain weaker than
what we are currently experiencing in the United States. However, signs of a
moderate upturn in global economic growth are now surfacing. Growth is picking
up in Europe with Britain leading the way. Japan's economy appears to have
bottomed, but is unlikely to show a strong upturn soon. Much of the rest of
Asia, excluding China, seems to be recovering after experiencing significant
weakness last year. South American economies continue to struggle.
So far in 1999 stock markets in the Pacific, Far East and Latin American regions
have generally produced the highest returns globally. National markets in those
regions are recovering to some extent from very weak relative performance in
recent years. Stock markets in most developed countries of Europe performed well
over the last six months when measured in local currencies. However, returns of
European stocks are less rewarding when measured in U.S. dollars because
European currencies have been weak.
3 -------
<PAGE>
STATE FARM VARIABLE PRODUCT 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.
Please see the previous sections on the U.S. Economy and U.S. Equity Market.
Financial Highlights on page 63.
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 which
currently have an average market capitalization of $526 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.
Please see the previous sections on the U.S. Economy and U.S. Equity Market.
Financial Highlights on page 64.
- ------------------------
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.)
- ---------
4
<PAGE>
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 three
largest markets in Asia. The Index includes equity securities of approximately
1,100 companies in these countries. As of June 30, 1999, the countries with the
highest weights were Japan, which accounted for 22.8% of the Index, the United
Kingdom at 21.2%, and Germany, which represented 9.8%.
Please see the previous sections on International Economies and Markets.
Financial Highlights on page 65.
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, 1999, 63% of the Stock and Bond Balanced Fund's assets were invested
in the Large Cap Equity Index Fund and 37% in the Bond Fund.
Please see the previous sections on the U.S. Economy, U.S. Equity Market, and
the U.S. Bond Market. Financial Highlights on page 66.
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.
Please see the previous section on the U.S. Bond Market. Financial Highlights on
page 67.
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 not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
Financial Highlights on page 68.
-------------------------------------------------------
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.
- ------------------------
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 -------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (90.4%)
AEROSPACE/DEFENSE (.6%)
10,939 Boeing Co. $ 483,367
1,435 General Dynamics Corp. 98,297
4,416 Lockheed Martin Corp. 164,496
755 Northrop Grumman Corp. 50,066
------------
796,226
------------
AGRICULTURE, FOODS, & BEVERAGE (3.8%)
411 Adolph Coors Co. Class B 20,344
5,401 Anheuser Busch Companies Inc. 383,133
6,652 Archer-Daniels-Midland Company 102,690
3,229 Bestfoods 159,835
763 Brown Forman Corp. Class B 49,738
5,060 Campbell Soup Company 234,658
4,767 Coca-Cola Enterprises Inc. 146,585
5,531 ConAgra Inc. 147,263
1,737 General Mills Inc. 139,611
1,625 Hershey Foods Corp. 96,484
4,059 HJ Heinz Co. 203,457
4,548 Kellogg Company 150,084
3,656 Nabisco Group Holding Corp. 71,520
16,638 Pepsico Inc. 643,683
2,684 Pioneer Hi-Bred International Inc. 104,508
1,542 Quaker Oats Co. 102,350
3,657 Ralston Purina Co. 111,310
10,226 Sara Lee Corporation 232,002
4,776 Seagram Ltd. 240,591
1,365 Supervalu Inc. 35,063
3,762 Sysco Corporation 112,155
27,800 The Coca-Cola Company 1,737,500
1,318 WM Wrigley Jr. Co. 118,620
------------
5,343,184
------------
AIRLINES (.3%)
1,844 AMR Corp. (a) 125,853
1,613 Delta Air Lines Inc. 92,949
3,816 Southwest Airlines Co. 118,773
899 US Airways Group Inc. (a) 39,163
------------
376,738
------------
AUTOMOTIVE (1.3%)
825 Cooper Tire & Rubber Co. 19,491
1,860 Dana Corp. 85,676
6,347 Delphi Automotive Systems (a) 117,816
13,644 Ford Motor Company 770,033
7,392 General Motors Corp. 487,872
2,009 Genuine Parts Co. 70,315
1,769 Goodyear Tire & Rubber Co. 104,039
1,107 ITT Industries Inc. 42,204
701 Navistar International Corp. (a) 35,050
844 Paccar Inc. 45,049
1,368 TRW Inc. 75,069
------------
1,852,614
------------
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
BANKS (6.1%)
1,925 Amsouth Bancorporation $ 44,636
19,714 Bank of America Corporation 1,445,283
3,348 Bank of Boston Corp. 171,167
8,600 Bank of New York Inc. 315,513
13,339 Bank One Corporation 794,504
3,524 BB&T Corp. 129,287
9,535 Chase Manhattan Corp. 825,969
1,762 Comerica Inc. 104,729
3,016 Fifth Third Bancorp 200,753
10,987 First Union Corp. 516,389
7,630 Firstar Corp. 213,640
6,428 Fleet Financial Group Inc. 285,243
624 Golden West Financial Corporation 61,152
2,357 Hunting Bancshares Inc. 82,495
1,972 JP Morgan & Co. Incorporated 277,066
5,155 Keycorp 165,604
5,911 Mellon Bank Corp. 215,013
1,260 Northern Trust Corporation 122,220
3,409 PNC Bank Corporation 196,444
1,607 Providian Financial Corp. 150,254
1,213 Republic New York Corp. 82,711
1,912 Southtrust Corporation 73,373
1,809 State Street Corp. 154,443
1,958 Summit Bancorp 81,869
3,593 SunTrust Banks Inc. 249,489
3,024 Synovus Financial Corp. 60,102
1,610 Union Planters Corp. 71,947
8,176 US Bancorp 277,984
2,294 Wachovia Corporation 196,280
6,704 Washington Mutual Inc. 237,154
18,672 Wells Fargo & Company 798,228
------------
8,600,941
------------
BUILDING MATERIALS & CONSTRUCTION (.2%)
442 Armstrong World Industries 25,553
644 Centex Corp. 24,190
396 Fleetwood Enterprises Inc. 10,469
871 Fluor Corp. 35,275
422 Foster Wheeler Corp. 5,961
496 Kaufman & Broad Home Corp. 12,338
3,818 Masco Corp. 110,245
609 McDermott International Inc. 17,204
571 Owens Corning 19,628
443 Pulte Corp. 10,217
964 Stanley Works 31,029
------------
302,109
------------
CHEMICALS (1.7%)
2,562 Air Products & Chemicals Inc. 103,120
795 BF Goodrich Co. 33,787
12,692 E.I. du Pont de Nemours and Company 867,022
903 Eastman Chemical Co. 46,730
1,584 Engelhard Corp. 35,838
345 FMC Corp. (a) 23,568
</TABLE>
- ---------
6
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
618 Great Lakes Chemical Corporation $ 28,467
1,163 Hercules Inc. 45,720
1,204 International Flavors & Fragrances Inc. 53,428
7,083 Monsanto Co. 279,336
726 Nalco Chemical Co. 37,661
1,985 PPG Industries Inc. 117,239
1,784 Praxair Inc. 87,305
858 Raychem Corporation 31,746
2,403 Rohm & Haas Co. 103,029
1,171 Sigma-Aldrich Corporation 40,326
2,497 The Dow Chemical Company 316,807
1,511 Union Carbide Corp. 73,661
874 WR Grace & Co. (a) 16,060
------------
2,340,850
------------
COMMERCIAL SERVICE/SUPPLY (1.2%)
9,001 Cendant Corp. (a) 184,520
937 Deluxe Corp. 36,484
1,894 Dun and Bradstreet Corp. 67,119
3,654 Eastman Kodak Co. 247,558
1,105 H&R Block Inc. 55,250
1,577 Interpublic Group of Companies Inc. 136,608
404 Milacron Inc. 7,474
3,086 Pitney Bowes Inc. 198,275
478 Polaroid Corp. 13,205
1,544 RR Donnelley & Sons Company 57,225
3,025 Service Corp. International 58,231
5,275 Staples Inc. (a) 163,195
1,089 WW Grainger Inc. 58,602
7,496 Xerox Corporation 442,733
------------
1,726,479
------------
COMPUTER SOFTWARE AND SERVICES (6.5%)
694 Adobe Systems Inc. 57,016
12,233 America Online Inc. (a) 1,351,746
699 AutoDesk Inc. 20,664
6,955 Automatic Data Processing Inc. 306,020
1,578 Ceridian Corp. (a) 51,581
6,042 Computer Associates International Inc. 332,310
1,796 Computer Sciences Corp. (a) 124,261
4,105 Compuware Corp. (a) 130,590
5,559 Electronic Data Systems Corporation 314,431
4,917 First Data Corp. 240,626
57,627 Microsoft Corporation (a) 5,197,235
3,894 Novell Inc. (a) 103,191
16,302 Oracle Corporation (a) 605,212
3,075 Parametric Technology Corp. (a) 42,666
2,668 PeopleSoft Inc. (a) 46,023
286 Shared Medical Systems Corp. 18,661
3,015 Unisys Corp. (a) 117,397
------------
9,059,630
------------
COMPUTERS (5.0%)
4,054 3Com Corp. (a) 108,191
1,744 Apple Computer Inc. (a) 80,769
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
1,896 Cabletron Systems Inc. (a) $ 24,648
19,126 Compaq Computer Corporation 453,047
553 Data General Corp. (a) 8,053
28,610 Dell Computer Corp. (a) 1,058,570
11,417 EMC Corp. (a) 627,935
1,775 Gateway Inc. (a) 104,725
11,471 Hewlett-Packard Company 1,152,835
1,604 Ikon Office Solutions Inc. 24,060
20,472 International Business Machines
Corporation 2,646,006
2,780 Seagate Technology (a) 71,238
2,092 Silicon Graphics Inc. (a) 34,257
8,688 Sun Microsystems Inc. (a) 598,386
------------
6,992,720
------------
CONSUMER & MARKETING (3.7%)
587 Alberto-Culver Company 15,629
775 American Greetings Corp. Class A 23,347
2,965 Avon Products Inc. 164,557
330 Ball Corp. 13,942
2,300 Best Buy Inc. (a) 155,250
1,004 Black & Decker Corp. 63,378
1,080 Brunswick Corp. 30,105
1,377 Clorox Co. 147,081
3,310 Colgate-Palmolive Company 326,862
1,478 Danaher Corp. 85,909
1,571 Darden Restaurants Inc. 34,267
1,459 Ecolab Inc. 63,649
2,445 Fort James Corp. 92,604
2,233 Hasbro Inc. 62,384
381 Jostens Inc. 8,025
6,112 Kimberly Clark Corp. 348,384
4,693 Mattel Inc. 124,071
1,026 Maytag Corp. 71,499
15,282 McDonald's Corporation 631,338
3,204 Newell Rubbermaid Inc. 148,986
407 Russell Corp. 7,936
730 Snap-On Inc. 26,417
12,527 The Gillette Company 513,607
14,916 The Procter & Gamble Company 1,331,253
1,724 Tricon Global Restaurants (a) 93,312
608 Tupperware Corp. 15,504
6,455 Unilever NV 450,236
1,431 Wendy's International Inc. 40,515
843 Whirlpool Corp. 62,382
------------
5,152,429
------------
CONTAINERS & PACKAGING (.2%)
556 Bemis Company Inc. 22,101
1,397 Crown Cork & Seal Inc. 39,814
1,758 Owens Illinois Inc. (a) 57,465
956 Sealed Air Corporation (a) 62,021
605 Temple-Inland Inc. 41,291
------------
222,692
------------
</TABLE>
7 -------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
ELECTRONIC/ELECTRICAL MFG. (6.1%)
1,669 Advanced Micro Devices Inc. (a) $ 30,146
4,246 Applied Materials Inc. (a) 313,673
485 EG&G Inc. 17,278
4,969 Emerson Electric Co. 312,426
36,842 General Electric Company 4,163,146
1,429 Honeywell Inc. 165,585
37,479 Intel Corporation 2,230,000
965 KLA Tencor Corporation (a) 62,604
1,595 LSI Logic Corp. (a) 73,569
2,826 Micron Technology Inc. (a) 113,923
1,893 National Semiconductor Corp. (a) 47,917
3,789 Raytheon Co. 266,651
2,155 Rockwell International Corp. 130,916
4,392 Texas Instruments Inc. 636,840
624 Thomas & Betts Corp. 29,484
------------
8,594,158
------------
ENVIRONMENTAL CONTROLS (.3%)
1,885 Browning-Ferris Industries Inc. 81,055
6,878 Waste Management Inc. 369,693
------------
450,748
------------
FINANCIAL SERVICES (5.3%)
5,096 American Express Company 663,117
8,236 Associates First Capital Corp. 364,958
1,315 Bear Stearns Companies Inc. 61,476
2,189 Capital One Financial Corp. 121,900
4,535 Charles Schwab Corp. 498,283
38,059 Citigroup Inc. 1,807,803
1,284 Countrywide Credit Industries Inc. 54,891
1,680 Equifax Inc. 59,955
7,842 Federal Home Loan Mortgage 454,836
11,596 Federal National Mortgage Association 792,877
2,873 Franklin Resources Inc. 116,716
5,465 Household International Inc. 258,904
1,326 Lehman Brothers Holding Inc. 82,543
1,132 MBIA Inc. 73,297
9,086 MBNA Corporation 278,259
1,765 Mercantile Bancorporation 100,826
4,080 Merrill Lynch & Company Inc. 326,145
1,254 MGIC Investment Corp. 60,976
6,424 Morgan Stanley Dean Witter & Co. 658,460
3,602 National City Corp. 235,931
1,600 Paine Webber Group Inc. (a) 74,800
2,773 Paychex Inc. 88,389
2,529 Regions Financial Corp. 97,208
1,868 SLM Holding Corp. 85,578
------------
7,418,128
------------
FOREST PRODUCTS (.5%)
591 Boise Cascade Corp. 25,413
1,100 Champion International Corp. 52,663
2,010 Georgia Pacific Corp. 95,224
4,608 International Paper Co. 232,704
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
1,172 Louisiana-Pacific Corp. $ 27,835
1,092 Mead Corporation 45,591
315 Potlatch Corp. 13,840
1,075 Westvaco Corp. 31,175
2,238 Weyerhaeuser Co. 153,862
1,259 Willamette Industries Inc. 57,993
------------
736,300
------------
HEALTH CARE (9.9%)
17,114 Abbott Laboratories 778,687
727 Allergan Inc. 80,697
1,143 Alza Corporation (a) 58,150
14,859 American Home Products Corp. 854,392
5,754 Amgen Inc. (a) 350,275
614 Baush & Lomb Inc. 46,971
3,241 Baxter International Inc. 196,486
2,812 Becton Dickinson & Co. 84,360
1,274 Biomet Inc. 50,641
4,421 Boston Scientific Corporation (a) 194,248
22,408 Bristol-Myers Squibb 1,578,364
3,021 Cardinal Health Inc. 193,722
6,604 Columbia/HCA Healthcare Corp. 150,654
572 CR Bard Inc. 27,349
12,412 Eli Lilly & Co. 889,010
3,409 Guidant Corp. 175,350
1,277 Health Care & Retirement (a) 30,887
4,724 Healthsouth Corp. (a) 70,565
1,875 Humana Inc. (a) 24,258
3,626 IMS Health Inc. 113,312
15,163 Johnson & Johnson 1,485,974
781 Mallinckrodt Inc. 28,409
3,096 McKesson HBOC Inc. 99,459
6,516 Medtronic Inc. 507,434
26,655 Merck & Co. Inc. 1,972,470
14,634 Pfizer Inc. 1,606,081
5,716 Pharmacia & Upjohn Inc. 324,740
16,577 Schering Plough Corp. 878,581
985 St. Jude Medical Inc. (a) 35,091
3,502 Tenet Healthcare Corp. (a) 65,006
1,999 United Healthcare Corp. 125,187
9,569 Warner-Lambert Co. 663,849
1,036 Watson Pharmaceuticals Inc. (a) 36,325
800 Wellpoint Health Network Inc. (a) 67,900
------------
13,844,884
------------
INSURANCE (3.1%)
1,610 Aetna Inc. 143,994
3,048 AFLAC Inc. (a) 145,923
9,259 Allstate Corp. 332,167
2,851 American General Corporation 214,894
13,910 American International Group Inc. 1,628,339
2,876 Aon Corp. 118,635
1,847 Chubb Corp. 128,366
2,335 Cigna Corp. 207,815
1,875 Cincinnati Financial Corp. 70,430
</TABLE>
- ---------
8
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
3,682 Conseco Inc. $ 112,071
1,205 Jefferson-Pilot Corp. 79,756
2,294 Lincoln National Corp. 120,005
1,289 Loews Corp. 101,992
3,014 Marsh & McLennan Companies Inc. 227,557
810 Progressive Corp. 117,450
1,539 Provident Companies Inc. 61,560
1,498 Safeco Corp. 66,099
2,621 St. Paul Companies Inc. 83,381
2,603 The Hartford Financial Services Group
Inc. 151,787
1,595 Torchmark Corp. 54,429
1,384 Transamerica Corp. 103,800
1,557 UNUM Corp. 85,246
------------
4,355,696
------------
LODGING & GAMING (.1%)
1,381 Harrahs Entertainment Inc. (a) 30,382
2,951 Hilton Hotels Corp. 41,867
2,765 Marriott International Class A 103,342
2,174 Mirage Resorts Inc. (a) 36,414
------------
212,005
------------
MACHINERY & MANUFACTURING (2.7%)
6,286 AlliedSignal Inc. 396,018
1,315 Avery Dennison Corp. 79,393
267 Briggs & Stratton Corp. 15,419
800 Case Corp. 38,500
4,062 Caterpillar Inc. 243,720
1,067 Cooper Industries Inc. 55,484
2,712 Corning Incorporated 190,179
717 Crane Co. 22,541
451 Cummins Engine Company Inc. 25,763
2,715 Deere & Company 107,582
2,477 Dover Corp. 86,695
794 Eaton Corp. 73,048
640 Harnischfeger Inc. (a) 1,280
2,832 Illinois Tool Works Inc. 232,224
1,847 Ingersoll Rand Co. 119,362
969 Johnson Controls Inc. 67,164
451 Millipore Corp. 18,294
4,539 Minnesota Mining & Manufacturing Co. 394,609
74 Nacco Industries Inc. 5,439
456 National Service Industries Inc. 16,416
1,418 Pall Corporation 31,462
1,244 Parker Hannifin Corp. 56,913
1,923 Tenneco Inc. 45,912
1,787 Textron Inc. 147,092
1,804 Thermo Electron Corp. (a) 36,193
646 Timken Co. 12,597
9,231 Tyco International Ltd. 874,637
5,464 United Technologies Corp. 391,701
------------
3,785,637
------------
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
MEDIA & BROADCASTING (2.8%)
8,061 CBS Corp. (a) $ 350,150
3,732 Clear Channel Communications (a) 257,275
8,334 Comcast Corp. Class A 320,338
1,073 Dow Jones & Company Inc. 56,936
3,187 Gannett Company Inc. 227,472
789 King World Productions Inc. (a) 27,467
899 Knight-Ridder Inc. 49,389
2,232 McGraw Hill Companies Inc. 120,389
555 Meredith Corp. 19,217
2,060 New York Times Co. 75,834
1,990 Omnicom Group Inc. 159,200
23,229 The Walt Disney Company 715,744
13,452 Time Warner Inc. 988,722
798 Times Mirror Co. 47,282
1,351 Tribune Co. 117,706
7,868 Viacom Inc. (a) 346,192
------------
3,879,313
------------
MINING & METALS (.6%)
2,518 Alcan Aluminium Ltd. 80,419
4,159 ALCOA Inc. 257,338
2,201 Allegheny Teledyne Inc. 49,798
415 Asarco Inc. 7,807
4,389 Barrick Gold Corp. 85,037
2,655 Battle Mountain Gold Co. 6,472
1,480 Bethlehem Steel Corp. (a) 11,378
987 Cyprus Amax Minerals Co. 14,990
1,946 Freeport McMoRan Copper &
Gold Inc. (a) 34,906
2,790 Homestake Mining Co. 22,843
2,123 INCO Limited (a) 38,214
1,911 Newmont Mining Corporation 37,981
953 Nucor Corporation 45,208
627 Phelps Dodge Corp. 38,835
3,621 Placer Dome Inc. 42,773
730 Reynolds Metals Co. 43,070
1,017 USX US Steel Group 27,459
1,080 Worthington Industries Inc. 17,753
------------
862,281
------------
OIL, GAS, & OTHER ENERGY (6.0%)
1,035 Amerada Hess Corporation 61,583
1,388 Anadarko Petroleum Corp. 51,096
1,236 Apache Corp. 48,204
818 Ashland Inc. 32,822
3,643 Atlantic Richfield Inc. 304,418
3,649 Baker Hughes Inc. 122,242
1,986 Burlington Resources Inc. 85,895
7,368 Chevron Corporation 701,342
2,372 Coastal Corp. 94,880
954 Columbia Energy Group 59,804
1,082 Consolidated Natural Gas 65,732
252 Eastern Enterprises 10,017
3,961 Enron Corp. 323,812
</TABLE>
9 -------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
27,318 Exxon Corporation $ 2,106,901
4,980 Haliburton Co. 225,345
556 Helmerich & Payne Inc. 13,240
956 Kerr McGee Corp. 47,979
8,804 Mobil Corp. 871,596
513 Nicor Inc. 19,526
3,938 Occidental Pete Corp. 83,190
311 Oneok Inc. 9,874
374 Peoples Energy Corp. 14,095
2,890 Pete Phillips Co. 145,403
899 Rowan Companies Inc. (a) 16,575
24,180 Royal Dutch Petroleum Company 1,456,845
6,127 Schlumberger Ltd. 390,213
2,690 Sempra Energy 60,861
1,256 Sonat Inc. 41,605
1,077 Sunoco Inc. 32,512
6,023 Texaco Inc. 376,438
2,778 Union Pacific Resources Group Inc. 45,316
2,754 Unocal Corp. 109,127
3,513 USX Marathon Group 114,392
4,852 Williams Companies Inc. 206,513
------------
8,349,393
------------
RETAILERS (6.0%)
4,744 Albertsons Inc. 244,613
1,721 Autozone Inc. (a) 51,845
6,947 Carnival Corp. 336,930
1,089 Circuit City Stores-Carmax 101,277
1,248 Consolidated Stores Corp. (a) 33,696
2,425 Costco Companies Inc. (a) 194,152
4,375 CVS Corp. 223,672
4,981 Dayton Hudson Corp. 323,765
1,235 Dillards Inc. 43,379
2,571 Dollar General Corp. 74,559
2,328 Federated Department Stores Inc. (a) 123,239
787 Fruit of the Loom Ltd. (a) 7,673
9,616 GAP Inc. 484,406
400 Great Atlantic & Pacific Tea Company
Inc. 13,525
770 Harcourt General Inc. 39,703
16,721 Home Depot Inc. 1,077,460
3,014 JC Penney Inc. 146,367
5,554 K-Mart Corp. (a) 91,294
1,785 Kohls Corp. (a) 137,780
9,320 Kroger Co. (a) 260,378
2,529 Limited Inc. 114,753
406 Longs Drug Stores Inc. 14,032
4,217 Lowes Companies Inc. 239,051
3,932 May Department Stores Co. 160,721
1,675 Nordstrom Inc. 56,113
4,200 Office Depot Inc. (a) 92,663
614 Pep Boys Manny Moe & Jack Inc. 13,278
2,884 Rite Aid Corp. 71,019
5,589 Safeway Inc. (a) 276,656
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
4,325 Sears Roebuck & Co. $ 192,733
1,940 Sherwin Williams Co. 53,835
2,268 Tandy Corp. 110,849
3,611 TJX Companies Inc. 120,291
2,930 Toys R Us Inc. (a) 60,614
50,176 Wal-Mart Stores Inc. 2,420,992
11,330 Walgreen Co. 332,819
1,675 Winn Dixie Stores Inc. 61,870
------------
8,402,002
------------
TECHNOLOGY (2.0%)
2,651 BMC Software Inc. (a) 143,154
1,555 CenturyTel Inc. 61,811
35,808 Cisco Systems Inc. (a) 2,309,616
800 Network Appliance Inc. (a) 44,700
548 PE Corp (a) 62,883
2,761 Solectron Corp. (a) 184,124
511 Tektronix Inc. 15,426
------------
2,821,714
------------
TELECOM & TELECOM EQUIPMENT (10.8%)
3,207 Alltel Corporation 229,301
12,420 Ameritech Corporation 912,870
910 Andrew Corp. (a) 17,233
35,859 AT&T Corp. 2,001,381
17,504 Bell Atlantic Corp. 1,144,324
21,431 Bellsouth Corp. 1,004,578
1,932 Frontier Corp. 113,988
1,943 General Instrument Corp. (a) 82,578
10,881 GTE Corp. 824,236
928 Harris Corp. 36,366
34,313 Lucent Technologies Inc. 2,313,983
20,979 MCI Worldcom Inc. (a) 1,809,439
6,860 MediaOne Group Inc. (a) 510,213
6,782 Motorola Inc. 642,595
3,345 Nextel Communications Inc. (a) 167,877
7,406 Nortel Networks Corp. 642,933
22,158 SBC Communications Inc. 1,285,164
821 Scientific Atlanta Inc. 29,556
9,848 Sprint FON Group 520,098
4,883 Sprint PCS Group (a) 278,941
4,347 Tellabs Inc. (a) 293,694
5,654 US West Inc. 332,173
------------
15,193,521
------------
TEXTILES & CLOTHING (.2%)
720 Liz Claiborne Inc. 26,280
3,228 Nike Inc. 204,373
591 Reebok International Ltd. (a) 11,007
218 Springs Industries Inc. Class A 9,510
1,366 VF Corp. 58,397
------------
309,567
------------
</TABLE>
- ---------
10
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ------------
<C> <S> <C>
TOBACCO (.9%)
1,957 Fortune Brands Inc. $ 80,971
27,340 Philip Morris Companies Inc. 1,098,726
2,074 UST Inc. 60,665
------------
1,240,362
------------
TRANSPORTATION (.6%)
5,308 Burlington Northern Santa Fe Corp. 164,548
2,435 CSX Corp. 110,336
3,345 FDX Corp. (a) 181,466
1,287 Kansas City Southern Industries Inc. 82,127
3,718 Laidlaw Inc. 27,420
4,268 Norfolk Southern Corp. 128,574
791 Ryder Systems Inc. 20,566
2,807 Union Pacific Corp. 163,683
------------
878,720
------------
UTILITIES & ENERGY (1.9%)
2,116 AES Corporation (a) 122,993
1,545 Ameren Corporation 59,289
2,164 American Electric Power Co. 81,285
1,723 Carolina Power & Light Co. 73,766
2,356 Central & Southwest Corporation 55,072
1,801 Cinergy Corp. 57,632
1,298 CMS Energy Corporation 54,354
2,603 Consolidated Edison Inc. 117,786
1,713 Constellation Energy Corp. 50,748
2,217 Dominion Resources Inc. 96,024
1,654 DTE Energy Co. 66,160
4,086 Duke Energy Corporation 222,176
3,987 Edison International 106,652
2,813 Entergy Corp. 87,906
2,696 FirstEnergy Corp. 83,576
1,100 Florida Progress Corp. (a) 45,444
2,022 FPL Group Inc. 110,452
1,456 GPU Inc. 61,425
1,309 New Century Energies Inc. 50,806
2,078 Niagara Mohawk Holdings Inc. (a) 33,378
1,739 Northern States Power Co. 42,062
3,381 Pacificorp 62,126
2,284 Peco Energy Co. 95,643
4,297 PG&E Corp. 139,653
1,814 PP&L Resources Inc. 55,781
2,534 Public Service Enterprise Group 103,577
3,325 Reliant Energy Inc. 91,853
7,860 Southern Company 208,290
3,193 Texas Utilities Company (Holding Co.) 131,711
2,421 Unicom Corp. 93,360
------------
2,660,980
------------
TOTAL COMMON STOCKS
(cost $111,469,440) 126,762,021
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (9.4%)
$13,297,000 U.S. Treasury Bills, 4.430% and 4.455%,
July, 1999 and August, 1999 (cost
$13,238,957) $ 13,239,010
------------
TOTAL INVESTMENTS (99.8%)
(cost $124,708,397) 140,001,031
CASH AND OTHER ASSETS, LESS LIABILITIES (0.2%)
293,166
------------
NET ASSETS (100.0%) $140,294,197
------------
------------
</TABLE>
Notes:
(a) Non-income producing security.
At June 30, 1999, net unrealized appreciation of $15,292,634 consisted of gross
unrealized appreciation of $17,111,580 and gross unrealized depreciation of
$1,818,946 based on cost of $124,708,397 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, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
COMMON STOCKS (96.4%)
COMMERCIAL SERVICE/SUPPLY (6.0%)
647 Abacus Direct Corp. (a) $ 59,200
1,246 ABM Industries Inc. 38,237
434 Administaff Inc. (a) 6,944
1,627 Advo Inc. (a) 33,760
509 AHL Services Inc. (a) 12,693
200 Alternative Resources Corp. (a) 1,400
648 Amerco Inc. (a) 14,580
188 Amplicon Inc. 2,632
312 AnswerThink Consulting Group Inc. (a) 7,878
1,024 APAC Teleservices Inc. (a) 3,328
781 Applied Graphics Technologies (a) 9,860
100 ASV Inc. (a) 2,262
2,059 Banta Corp. 43,239
1,840 BE Aerospace Inc. (a) 34,385
2,712 Billing Concepts Corp. (a) 30,340
492 Boron Lepore & Associates Inc. (a) 4,120
1,150 Building One Services (a) 15,956
100 Career Education Corp. (a) 3,381
863 CDI Corp. (a) 29,396
1,961 CenterTrust Retail Properties Inc. 23,042
4,349 Century Business Services (a) 63,060
1,136 ChoicePoint Inc. (a) 76,254
5,116 CMG Information Services Inc. (a) 583,544
2,978 Concentric Network Corp. (a) 118,375
200 Cornell Corrections Inc. (a) 3,287
975 Cort Business Services Corp. (a) 23,339
699 Crescent Operating Inc. (a) 4,762
535 Diamond Tech Partners Inc. (a) 11,971
1,829 Dollar Thrifty Automotive (a) 42,524
2,426 DoubleClick Inc. (a) 222,585
267 Duff & Phelps Credit Rating Co. 17,856
844 DVI Inc. (a) 14,454
1,324 Dycom Industries Inc. (a) 74,144
3,789 e.spire Communications Inc. (a) 40,021
360 Edutrek International Inc. (a) 1,710
603 Electric Lightwave Inc. (a) 7,839
1,086 Electro Rent Corp. (a) 11,674
1,025 Entertainment Properties Trust 18,066
2,910 Equity Inns Inc. 26,917
200 Essef Corp. (a) 4,050
1,237 First Consulting Group Inc. (a) 13,143
829 FYI Inc. (a) 26,010
1,508 Gaylord Entertainment Class A 45,240
1,666 Getty Images Inc. (a) 31,446
590 Golf Trust of America Inc. 14,418
694 Hagler Bailly Inc. (a) 7,113
200 Hemispherx Biopharma Inc. (a) 1,500
1,501 Integrated Electrical Services (a) 24,204
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
3,572 Interim Services Inc. (a) $ 73,672
977 Interpool Inc. 12,701
1,301 Iron Mountain Inc. (a) 37,241
671 ITI Technologies Inc. (a) 15,181
1,625 Jacobs Engineering Group Inc. (a) 61,750
2,278 John H. Harland Co. 45,418
2,230 Jones Lang LaSalle Inc. (a) 66,482
1,717 Labor Ready Inc. (a) 55,802
922 LaSalle Hotel Properties 14,118
895 Lason Holdings Inc. (a) 44,414
970 Leasing Solutions Inc. (a) 727
3,416 Lee Enterprises Incorporated Class B 104,188
1,324 Lexington Corporate Properties 15,391
692 Maximus Inc. (a) 19,895
541 McGrath Rentcorp 10,820
871 Memberworks Inc. (a) 25,259
1,008 Metal Management Inc. (a) 1,512
2,167 Metamor Worldwide Inc. (a) 52,143
1,928 Metrocall Inc. (a) 5,302
3,587 Metromedia Fiber Network (a) 128,908
4,048 Metromedia International Group Inc. (a) 30,360
1,405 Metzler Group Inc. (a) 38,813
269 MGC Communications Inc. (a) 6,994
1,258 Midas Group Inc. 35,696
2,914 Milacron Inc. 53,909
2,522 Morrison Knudsen Corp. (a) 26,008
2,473 National Data Corp. 105,721
300 National Equipment Services Inc. (a) 3,600
774 National RV Holdings Inc. (a) 19,011
659 NCO Group Inc. (a) 25,042
923 New England Business Services Inc. 28,498
6,407 New Plan Excel Realty Trust Inc. 115,326
1,301 NFO Worldwide Inc. (a) 18,214
1,087 Norrell Corp. 20,449
1,470 NovaCare Employee Services (a) 4,042
5,007 Olsten Corp. 31,607
863 On Assignment Inc. (a) 22,546
776 Pan Pacific Retail Properties 15,083
722 Parkway Properties Inc. 23,916
603 Pegasus Communication Corp. (a) 23,781
2,372 Personnel Group America (a) 23,720
572 Pierce Leahy Corp. (a) 14,121
312 PLD Telekom Inc. (a) 975
858 ProBusiness Services Inc. (a) 30,781
1,651 Protection One Inc. (a) 8,874
1,759 PS Business Parks Inc. 42,876
155 RemedyTemp Inc. (a) 2,092
1,302 Rollins Inc. 20,751
3,675 Rollins Truck Leasing Corp. 40,884
2,664 Romac International Inc. (a) 23,643
</TABLE>
- ---------
12
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
2,264 Safety-Kleen Corp. (a) $ 41,035
881 Schawk Inc. 7,874
3,478 Security Capital Group (a) 50,648
5,094 Sensormatic Electronics Corp. (a) 70,998
2,081 Sitel Corp. (a) 6,113
1,832 SL Green Realty Corp. 37,441
105 SM&A Corp. (a) 801
599 SOS Staffing Services Inc. (a) 3,145
1,133 Staff Leasing Inc. (a) 14,587
1,727 Staffmark Inc. (a) 17,324
923 Standard Register 28,382
540 Stone & Webster Inc. 14,377
400 Tanger Factory Outlet Centers Inc. 10,400
3,496 UniCapital Corp. (a) 22,068
1,040 United Payors & United Providers Inc.
(a) 24,115
960 URS Corp. (a) 28,140
100 US Liquids Incorporated (a) 2,087
942 US Restaurant Properties 20,017
3,955 Valassis Communications Inc. (a) 144,852
648 Volt Information Sciences (a) 14,823
314 Waste Industries Inc. (a) 5,613
1,302 West Teleservices Corp. (a) 12,206
119 Western Staff Services Inc. (a) 699
1,062 Xtra Corp. (a) 48,786
-----------
4,180,927
-----------
CONSUMER DISCRETIONARY (13.2%)
77 800-JR Cigar Inc. (a) 953
1,081 Aaron Rents Inc. 24,052
1,080 Ackerley Group Inc. 19,643
1,134 Action Performance Co. Inc. (a) 37,422
2,231 Adelphia Communications Corp. (a) 141,947
2,604 Adolph Coors Co. Class B 128,898
810 Agribrands International Inc. (a) 32,046
142 Ambassadors International Inc. (a) 2,112
436 AMC Entertainment Inc. (a) 8,338
504 American Classic Voyages Co. (a) 12,096
1,922 American Eagle Outfitters Inc. (a) 87,451
1,320 American Italian Pasta Co. (a) 40,095
1,359 American Retirement Corp. (a) 16,987
1,072 American Skiing Corp. (a) 4,355
8,528 American Tower Corp. (a) 204,672
1,738 Ames Department Stores Inc. (a) 79,296
502 Anchor Gaming Inc. (a) 24,127
1,521 Ann Taylor Stores Corp. (a) 68,445
1,862 Applebees International Inc. 56,093
13,807 Aqua Alliance Inc. (a) 21,573
2,171 Ascent Entertainment Group Inc. (a) 30,665
709 At Entertainment Inc. (a) 13,294
1,409 Authentic Fitness Corp. 24,657
2,029 Avado Brands Inc. 16,993
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
3,460 Aztar Corp. (a) $ 31,789
2,173 Ball Corp. 91,809
1,747 Bally Total Fitness Holding Corp. (a) 49,571
973 Bassett Furniture Industries Inc. 22,257
214 Berlitz International Inc. (a) 3,932
1,298 Big Flower Holdings Inc. (a) 41,374
445 Blair Corp. 11,987
3,035 Bob Evans Farms Inc. 60,321
962 Boise Cascade Office Products Inc. (a) 11,303
300 Bombay Company Inc. (a) 2,306
974 Borg-Warner Security Corp. (a) 19,784
2,811 Bowne & Co. Inc. 36,543
2,806 Boyd Gaming Corp. (a) 19,642
100 Brooke Group Ltd. (a) 2,337
1,304 Brown Shoe Company Inc. 28,362
539 Buckle Inc. (a) 15,496
1,983 Budget Group Inc. (a) 24,416
3,252 Buffets Inc. (a) 37,398
1,410 Burlington Coat Factory 27,231
757 Bush Industries Inc. 12,585
688 Caribiner International Inc. (a) 4,257
542 Carmike Cinemas Inc. (a) 8,638
669 Carriage Services Inc. (a) 12,544
498 Casella Waste Systems Inc. (a) 12,948
3,902 Caseys General Stores Inc. 58,530
1,944 Cash America International Inc. 25,029
1,356 Catalina Marketing Corp. (a) 124,752
1,130 Cato Corp. 13,136
1,408 CDnow Inc. (a) 24,816
1,329 CEC Entertainment Inc. (a) 56,150
2,058 Central Garden & Pet Co. (a) 21,094
858 Central Parking Corp. 29,386
773 Championship Auto Racing (a) 23,142
7,363 Charming Shoppes Inc. (a) 44,869
2,828 Checkfree Holdings Corp. (a) 77,947
1,195 Cheesecake Factory Inc. (a) 36,447
929 Children's Place Retail Stores Inc. (a) 37,624
2,865 Chiquita Brands International Inc. 25,785
2,722 Choice Hotels International Inc. (a) 53,759
588 Churchill Downs Inc. 20,286
3,034 Claire's Stores Inc. 77,746
473 Coinmach Laundry Corp. (a) 6,001
784 Coldwater Creek Inc. (a) 15,288
200 Cole National Corp. (a) 1,587
855 Coleman Inc. (a) 8,016
434 Columbia Sportswear Co. (a) 6,673
939 Consolidated Graphics Inc. (a) 46,950
1,519 Consolidated Products Inc. (a) 27,342
1,407 Copart Inc. (a) 29,899
7,750 Corporate Express Inc. (a) 54,250
951 Cost Plus Inc. (a) 43,270
601 Cox Radio Inc. (a) 32,604
</TABLE>
13-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
689 CPI Corp. $ 22,737
1,415 CSK Auto Corp. (a) 38,205
511 CSS Industries Inc. (a) 14,372
700 Cylink Corp. (a) 2,625
864 Daisytek International Corp. (a) 14,094
1,684 Dan River Inc. (a) 12,419
1,004 Dave & Busters Inc. (a) 29,116
138 Day Runner Inc. (a) 1,708
300 Del Monte Foods Co. (a) 5,025
217 Delia's Inc. (a) 2,929
1,303 Department 56 Inc. (a) 35,018
4,443 Devry Inc. (a) 99,412
649 Discount Auto Parts Inc. (a) 15,657
1,175 Donna Karan International Inc. (a) 11,677
699 Dover Downs Entertainment Inc. 12,364
1,195 Dress Barn Inc. (a) 19,120
1,273 Duane Reade Inc. (a) 38,986
1,303 Education Management Corp. (a) 27,037
911 Elder Beerman Stores Corp. (a) 6,662
866 Emmis Broadcasting Corp. (a) 42,759
1,191 Enesco Group Inc. 27,542
5,364 Extended Stay America Inc. (a) 64,368
100 Factory 2-U Inc. (a) 1,850
3,354 Fairfield Communities Inc. (a) 54,083
1,664 Family Golf Centers Inc. (a) 12,792
2,378 Fedders USA Inc. 15,903
3,447 Federal Signal Corp. 73,033
1,298 Finish Line Inc. Class A (a) 14,602
414 Finlay Enterprises Inc. (a) 5,537
2,142 Florida Panthers Holdings Inc. (a) 22,893
2,709 Foodmaker Inc. (a) 76,868
1,751 Footstar Inc. (a) 65,115
649 Fossil Inc. (a) 31,395
1,517 Franklin Covey Co. (a) 11,188
522 Fred's Inc. Class A 8,156
352 French Fragrances Inc. (a) 2,574
80 Friedmans Inc. 695
1,409 G&K Services Inc. 73,796
400 Gadzooks Inc. (a) 6,400
400 Garden Ridge Corp. (a) 1,900
432 GC Companies Inc. (a) 15,444
2,496 Gencorp Inc. 63,024
1,940 Genesco Inc. (a) 28,251
701 Genesis Direct Inc. (a) 1,314
200 Gibson Greetings Inc. (a) 1,269
1,728 Global Industrial Tech. Inc. (a) 20,844
1,326 Goody's Family Clothing Inc. (a) 15,166
200 Grand Union Co. (a) 2,162
422 Gray Communications Systems Inc. 8,440
1,300 Great Atlantic & Pacific Tea Company
Inc. 43,956
33 Grey Advertising Inc. 10,989
1,061 Group 1 Automotive Inc. (a) 22,414
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
582 Guess Inc. (a) $ 8,039
1,397 Guilford Mills Inc. 14,494
1,298 Guitar Center Inc. (a) 13,548
1,839 Gymboree Corp. (a) 19,309
2,971 Ha-Lo Industries Inc. (a) 29,339
392 Hancock Fabrics Inc. 1,715
2,481 Handleman Co. (a) 29,307
8,888 Hanover Direct Inc. (a) 24,997
537 Hartmarx Corp. (a) 2,249
634 Haverty Furniture Companies Inc. 22,309
4,443 Heilig Meyers Co. 30,268
869 Herbalife International Inc. 9,505
200 Hines Horticulture Inc. (a) 2,000
2,984 Hollinger International Inc. 35,435
2,279 Hollywood Entertainment Corp. (a) 44,583
1,410 Hollywood Park Inc. (a) 23,970
1,400 Homestead Village Inc. (a) 3,412
1,112 Horizon Offshore Inc. (a) 8,618
2,165 Host Marriott Services Corp. (a) 17,591
1,696 Houghton Mifflin Co. 79,818
3,425 ICG Communications Inc. (a) 73,209
1,273 IDT Corp. (a) 28,324
1,407 IHOP Corp. (a) 33,856
2,487 Innkeepers USA Trust 24,870
1,504 Insight Enterprises Inc. (a) 37,224
1,368 International Speedway Corp. 64,980
1,195 ITT Educational Services Inc. (a) 31,145
1,194 Jo Ann Stores Inc. (a) 17,910
3,795 John Wiley & Sons Inc. Class A 66,887
2,701 Jostens Inc. 56,890
836 Journal Register Co. (a) 18,810
1,939 Just For Feet Inc. (a) 12,482
1,196 Justin Industries Inc. 16,669
165 K2 Inc. 1,475
1,629 Kellwood Co. 44,187
542 Kenneth Cole Productions Inc. (a) 15,108
4,000 La-Z-Boy Inc. 92,000
1,941 Landry's Seafood Restaurants Inc. (a) 15,528
1,080 Lands' End Inc. (a) 52,380
863 Learning Tree International (a) 9,439
1,193 Libbey Inc. 34,597
2,757 Linens 'N Things Inc. (a) 120,619
100 Lithia Motors Inc. (a) 2,050
500 Lo-Jack Corp. (a) 4,187
2,291 Lodgian Inc. (a) 15,035
2,805 Lone Star Steakhouse & Saloon Inc. (a) 27,261
2,176 Longs Drug Stores Inc. 75,208
100 LSI Industries Inc. (a) 2,412
1,628 Luby's Cafeterias Inc. 24,420
2,939 Mail-Well Inc. (a) 47,575
1,730 Marcus Corp. 21,301
746 Marvel Entertainment Group Inc. (a) 5,502
</TABLE>
- ---------
14
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,044 Maxim Group Inc. (a) $ 9,070
1,650 McClatchy Newspapers Inc. 54,656
21 Media Arts Group Inc. (a) 92
1,747 Media General Inc. 89,097
1,853 Men's Wearhouse Inc. (a) 47,251
979 Merrill Corp. 14,195
541 Metro Networks Inc. (a) 28,876
1,839 Michaels Stores Inc. (a) 56,319
2,605 Micro Warehouse Inc. (a) 46,564
2,237 Midway Games Inc. (a) 28,941
650 Mikasa Inc. 7,353
2,772 Musicland Stores Corp. (a) 24,602
2,491 Nautica Enterprises Inc. (a) 42,036
600 North Face Inc. (a) 5,925
653 NPC International Inc. (a) 10,040
1,192 O'Sullivan Industries Holdings Inc. (a) 20,264
2,315 Oakley Inc. (a) 16,494
757 On Command Corp. (a) 13,342
1,080 Oneida Ltd. 30,375
265 ONSALE Inc. (a) 5,018
870 Oshkosh B'Gosh Inc. 18,379
436 Oxford Industries Inc. 12,344
2,300 Pacific Sunwear of California Inc. (a) 56,062
39 Panavision Inc. (a) 263
1,569 Papa Johns International Inc. (a) 70,115
563 Party City Corp. (a) 2,146
1,405 Paxson Communications Corp. (a) 18,967
433 Penske Motorsports Inc. (a) 21,488
1,521 Petco Animal Supplies Inc. (a) 23,956
8,683 Petsmart Inc. (a) 89,001
1,831 Phillips Van Heusen Corp. 18,081
541 Pillowtex Corp. 8,825
1,318 Pinnacle Systems Inc. (a) 44,318
66 PJ America Inc. (a) 1,398
195 Planet Hollywood International Inc. (a) 134
1,298 Plantronics Inc. (a) 84,532
1,411 Playboy Enterprises Inc. Class B (a) 37,480
1,485 Pre-Paid Legal Services Inc. (a) 40,373
4,658 Premier Parks Inc. (a) 171,181
953 Preview Travel Inc. (a) 20,906
3,894 Prime Hospitality Corp. (a) 46,728
598 Quaker Fabric Corp. (a) 2,504
1,567 Quiksilver Inc. (a) 40,840
700 Rainforest Cafe Inc. (a) 3,544
1,954 Red Roof Inns Inc. (a) 35,050
1,954 Regis Corp. 37,492
1,218 Rent Way Inc. (a) 29,993
1,188 Rent-A-Center Inc. (a) 28,512
1,798 Rental Service Corp. (a) 51,468
2,165 Ruby Tuesday Inc. 41,135
760 Russ Berrie & Company Inc. 18,810
2,128 Russell Corp. 41,496
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
2,925 Ryan's Family Steak Houses Inc. (a) $ 34,003
100 Saga Communications (a) 1,862
391 Samsonite Corp. (a) 1,955
976 Sbarro Inc. (a) 26,413
975 Scholastic Corp. (a) 49,359
756 Scientific Games Holdings Corp. (a) 14,742
474 Sequa Corporation Class A (a) 33,180
2,022 SFX Entertainment Inc. (a) 134,589
1,945 Shopko Stores Inc. (a) 70,506
23 Silverleaf Resorts Inc. (a) 148
200 Sodak Gaming Inc. (a) 1,875
1,409 Sonic Corp. (a) 45,969
871 Speedway Motorsports Inc. (a) 34,241
2,062 Spiegel Inc. (a) 18,300
882 Sports Authority Inc. (a) 3,914
826 Springs Industries Inc. Class A 36,034
1,195 St. John Knits Inc. 34,954
800 Stage Stores Inc. (a) 5,200
1,520 Station Casinos Inc. (a) 30,970
2,187 Stein Mart Inc. (a) 20,503
638 Steinway Musical Instruments Inc. (a) 16,907
524 Strayer Education Inc. 16,080
3,566 Stride Rite Corp. 36,774
1,511 Sturm Ruger & Company Inc. 16,149
200 Suburban Lodges America Inc. (a) 1,287
3,198 Sunglass Hut International Inc. (a) 54,966
2,166 Sunterra Corp. (a) 30,189
2,056 Superior Services Inc. (a) 54,869
2,835 Sylvan Learning Systems Inc. (a) 77,077
200 Syms Corp. (a) 1,625
1,293 Systemax Inc. (a) 16,001
866 Talbots Inc. 33,016
1,376 Tecumseh Products Co. 83,334
592 Thermolase Corp. (a) 777
329 Timberland Co. (a) 22,393
1,086 TMP Worldwide Inc. (a) 68,961
974 Toro Co. 38,351
1,796 Trans World Entertainment Corp. (a) 20,205
400 Travel Services International Inc. (a) 4,800
286 Trendwest Resorts Inc. (a) 6,381
1,087 Triarc Company Inc. (a) 23,099
650 Unifirst Corp. 11,944
1,296 United Auto Group Inc. (a) 13,284
327 United Natural Foods Inc. (a) 8,093
2,211 United Rentals Inc. (a) 65,225
2,713 United Stationers Inc. (a) 59,686
335 United Television Inc. 35,133
756 Urban Outfitters Inc. (a) 18,994
602 USA Floral Products Inc. (a) 4,553
1,953 Vail Resorts Inc. (a) 34,177
968 Value City Department Stores Inc. (a) 11,858
1,520 Veterinary Centers of America Inc. (a) 20,615
</TABLE>
15-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
542 Vistana Inc. (a) $ 8,536
2,023 Vlasic Foods International Inc. (a) 14,793
676 Wackenhut Corp. 20,111
758 Wackenhut Corrections Corp. (a) 15,018
3,055 Walter Industries Inc. (a) 39,524
979 WD-40 Co. 24,475
654 West Marine Inc. (a) 9,524
1,520 Westwood One Inc. (a) 54,245
761 Wet Seal Inc. (a) 21,784
400 Wilmar Industries Inc. (a) 5,200
1,627 Windmere Durable Holdings Inc. (a) 27,456
3,114 Wolverine World Wide Inc. 43,596
2,921 World Color Press Inc. (a) 80,327
653 Young Broadcasting Inc. (a) 27,793
2,605 Zale Corp. (a) 104,200
-----------
9,147,482
-----------
CONSUMER STAPLES (1.9%)
10,601 7-Eleven Inc. (a) 23,521
622 99 Cents Only Stores (a) 31,061
3,366 Advantica Restaurant Group Inc. (a) 11,571
1,324 Beringer Wine Estates Holdings Inc. (a) 55,318
1,058 Block Drug Inc. 44,105
782 Boston Beer Company Inc. (a) 6,305
435 Bush Boake Allen Inc. (a) 12,724
1,190 Canandaigua Brands Inc. (a) 62,401
1,304 Church & Dwight Inc. 56,724
213 Coca-Cola Bottling Co. Consolidated 11,928
2,754 Corn Products International Inc. 83,825
3,455 Dimon Inc. 17,923
1,621 Dreyers Grand Ice Cream Inc. 24,518
3,246 Earthgrains Co. 83,787
83 Farmer Brothers Co. 16,600
2,920 Fleming Companies Inc. 33,945
454 General Cigar Holdings Inc. (a) 3,547
986 Hain Food Group Inc. (a) 20,336
3,017 Homebase Inc. (a) 19,045
1,338 Imperial Sugar Co. 9,282
653 Ingles Markets Inc. 9,958
1,298 International Multifoods Co. 29,286
1,950 JM Smucker Co. 43,387
1,610 Lance Inc. 25,156
974 Michael Food Inc. 22,889
1,082 Natures Sunshine Products Inc. 11,361
558 Omega Protein Corp. (a) 2,929
977 Performance Food Group Co. (a) 26,562
323 Pilgrims Pride Corp. 9,690
2,487 Playtex Products Inc. (a) 38,704
2,378 Ralcorp Holdings Inc. (a) 38,197
3,674 Richfood Holdings Inc. 64,754
542 Riviana Foods Inc. 10,162
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
544 Robert Mondavi Corp. (a) $ 19,788
2,056 Ruddick Corp. 41,120
100 Sanderson Farms Inc. 1,425
1,081 Schweitzer-Mauduit International 16,215
16 Seaboard Corp. 5,440
756 Smart & Final Inc. 7,938
2,712 Smithfield Foods Inc. (a) 90,682
584 TCBY Enterprises Inc. 3,540
2,420 Universal Corp. 68,819
3,917 Universal Foods Corp. 82,747
652 Valhi Corp. 7,253
469 Weider Nutrition International Inc. 1,935
815 Wild Oats Markets Inc. (a) 24,730
1,227 Zapata Corp. (a) 10,429
-----------
1,343,562
-----------
DURABLE PRODUCTS (4.3%)
400 Advanced Lighting Technology Inc. (a) 3,600
60 Allied Products Corp. 172
1,189 Alpine Group Inc. (a) 19,098
300 American Homestar Corp. (a) 2,062
2,963 Applied Power Inc. Class A 80,927
702 Aviation Sales Co. (a) 27,729
2,535 Baldor Electric Co. 50,383
1,792 Blount International Inc. Class A 48,720
3,187 Champion Enterprises Inc. (a) 59,358
1,242 Chart Industries Inc. 9,781
775 Citation Corp. (a) 12,448
866 Columbus McKinnon Corp. 20,784
1,193 Cuno Inc. (a) 22,816
328 Curtiss-Wright Corp. 12,751
649 Detroit Diesel Corp. 15,982
2,815 Donaldson Inc. 68,967
3,075 DR Horton Inc. 51,122
300 DT Industries Inc. 2,756
300 Ducommun Inc. (a) 3,581
2,917 Flowserve Corporation 55,241
975 Gardner Denver Inc. (a) 15,722
5,216 Gentex Corp. (a) 146,048
348 Gleason Corp. 5,851
1,055 Graco Inc. 30,991
2,374 Griffon Corporation (a) 18,547
1,301 Harman International Industries Inc. 57,244
409 Heico Corp. 10,174
761 Holophane Corp. (a) 29,013
3,847 Hussman International Inc. 63,716
2,169 Idex Corp. 71,306
3,134 JLG Industries Inc. 63,855
307 JLK Direct Distribution Inc. (a) 2,859
3,675 Kaufman & Broad Home Corp. 91,416
1,151 Keystone Automotive Industries Inc. (a) 19,999
</TABLE>
- ---------
16
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
2,604 Kimball International Inc. Class B $ 43,942
978 Knoll Inc. (a) 26,039
1,734 Kulicke & Soffa Industries Inc. (a) 46,493
2,833 Lam Research Corp. (a) 132,266
816 Lindsay Manufacturing Co. 14,331
539 LS Starrett Co. Class A 14,486
410 Lufkin Industries Inc. 8,200
1,899 Manitowoc Inc. 79,046
1,191 Matthews International Corp. 35,283
1,620 MDC Holdings Inc. 34,830
2,940 Mettler Toledo International Inc. (a) 72,949
491 Moog Inc. (a) 16,878
640 Movado Group Inc. 16,560
490 National Presto Industries Inc. 18,742
1,081 Nordson Corp. 66,211
654 NVR Inc. (a) 34,131
1,190 O'Reilly Automotive Inc. (a) 59,946
3,569 Oakwood Homes Corp. 46,843
1,295 OEA Inc. (a) 11,493
300 Omniquip International Inc. 2,362
1,459 Palm Harbor Homes Inc. (a) 36,566
427 Parkervision Inc. (a) 14,945
1,782 Precision Castparts Corp. 75,735
2,059 Presstek Inc. (a) 14,864
1,798 Pulte Corp. 41,466
1,520 Regal Beloit Corp. 35,910
545 Robbins & Myers Inc. 12,160
2,274 Roper Industries Inc. 72,768
1,085 Ryland Group Inc. 32,211
758 Sauer Inc. 8,148
761 Scotsman Industries Inc. 16,409
1,304 Scott Technologies Inc. (a) 25,102
866 Specialty Equipment Companies Inc. (a) 25,493
2,278 SPX Corp. (a) 190,213
1,944 Standard Pacific Corp. 25,150
2,060 Stewart & Stevenson Services Inc. 31,415
652 Tennant Co. 20,864
1,286 Terex Corp. (a) 39,143
830 The Kroll-O'Gara Company (a) 18,312
956 Thermo Fibertek Inc. (a) 6,811
1,296 Titan International Inc. 15,390
1,738 Toll Brothers Inc. (a) 37,258
798 Tristar Aerospace Co. (a) 6,583
868 Triumph Group Inc. (a) 22,134
5,180 Unisource Worldwide Inc. 62,484
976 US Home Corp. (a) 34,648
1,212 Varlen Corp. 49,086
403 Virco Manufacturing Corp. 6,498
-----------
2,953,816
-----------
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
FINANCIAL SERVICES (20.2%)
1,800 Aames Financial Corp. (a) $ 2,362
866 Acceptance Insurance Companies Inc. (a) 13,044
1,729 Advanta Corp. 31,230
571 Advest Group Inc. 11,384
1,738 Affiliated Managers Group Inc. (a) 52,466
538 Alabama National Bancorp 13,450
269 Alexander's Inc. (a) 19,872
761 Alexandria Real Estate 23,781
1,843 Alfa Corp. 36,860
300 Allied Capital Corp. (a) 7,200
2,131 Amcore Financial Inc. 49,146
545 American Annuity Group Inc. 13,216
1,732 American Health Properties Inc. 34,856
1,193 American Heritage Life Investment Corp. 29,228
200 American Industrial Properties (a) 2,825
448 American Medical Security Group Inc. 3,864
4,761 AmeriCredit Corp. (a) 76,176
1,357 AmeriTrade Holding Corp. (a) 143,842
1,087 Amerus Life Holdings Inc. 29,349
978 AMLI Residential Properties 21,883
1,303 Anchor Bancorp of Wisconsin Inc. 23,210
100 Anchor Financial Corp. (a) 3,325
437 Andover Bancorp Inc. 13,711
1,096 Anthracite Capital Inc. 7,192
3,025 Arcadia Financial Ltd. (a) 23,444
760 Area Bancshares Corp. 20,615
1,300 Argonaut Group Inc. 31,200
1,826 ARM Financial Group Inc. 15,521
1,304 Arthur J. Gallagher & Co. 64,548
1,361 Associated Estates Realty Corp. 16,077
867 Baldwin & Lyons Inc. Class B 20,537
327 BancFirst Corp. 11,200
567 Bancfirst Ohio Corp. 13,962
100 Banco Santander Puerto Rico (a) 1,806
4,213 BancorpSouth Inc. 76,361
1,411 Banctec Inc. (a) 25,310
1,603 BancWest Corp. 59,511
841 Bank of Granite Corp. 20,710
1,300 Bank Plus Corp. (a) 6,987
2,815 BankAtlantic Bancorp Inc. 22,872
1,676 Banknorth Group Inc. 55,308
733 BankUnited Financial Corp. Class A (a) 7,055
1,410 Bay View Capital Corp. 28,905
1,626 Bedford Property Investors 29,065
2,810 Berkshire Realty Co. Inc. 32,491
774 BOK Financial Corp. (a) 19,543
1,255 Boykin Lodging Co. 19,296
1,738 Bradley Real Estate Inc. 36,063
2,588 Brandywine Realty Trust 51,275
3,354 BRE Properties Inc. 86,994
1,002 Brenton Banks Inc. 15,531
</TABLE>
17-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,007 Brookline Bancorp Inc. $ 11,643
761 Brown & Brown Inc. 28,918
540 BSB Bancorp Inc. 14,580
974 BT Financial Corp. 23,893
2,483 Burham Pacific Property Inc. 30,572
1,427 Cabot Industrial Trust 30,324
3,434 Camden Property Trust 95,294
1,382 Capital Automotive REIT 18,311
271 Capital City Bank Group Inc. 6,775
1,627 Capital Re Corp. 26,134
249 Capitol Transamerica Corp. 3,299
4,553 Capstead Mortgage Corp. (a) 24,757
1,623 Carolina First Corp. 39,561
975 Castle & Cooke Inc. (a) 17,184
580 Cathay Bancorp Inc. 24,650
978 CB Richard Ellis Services Inc. (a) 24,328
1,733 CBL & Associates Properties 45,708
1,736 CCC Information Services Group (a) 22,351
1,260 Centennial Bancorp (a) 17,404
1,516 Centerpoint Properties Trust 55,523
639 Century South Banks Inc. 14,377
200 CFS Bancorp Inc. (a) 2,187
716 CFSB Bancorp Inc. 17,631
1,348 Charles E. Smith Residential 45,748
1,587 Charter Municipal Mortgage Acceptance
Co. 20,333
79 Chartwell Re Corp. 1,471
1,565 Chateau Communities Inc. 46,852
1,189 Chelsea GCA Realty Inc. 44,142
1,002 Chemical Financial Corp. 34,882
1,055 Chicago Title Corp. 37,650
2,116 Chittenden Corp. 66,125
1,838 Citizens Banking Corp. 55,255
1,224 City Holding Co. 35,496
1,195 CNA Surety Corp. (a) 18,298
2,231 CNB Bancshares Inc. 127,167
1,949 Colonial Properties Trust 55,059
600 Columbia Banking Systems Inc. (a) 9,225
1,994 Commerce Bancorp Inc. 85,244
1,954 Commerce Group Inc. 47,629
4,538 Commercial Federal Corp. 105,225
2,372 Commercial Net Lease Realty 30,539
977 Commonwealth Bancorp Inc. 17,525
542 Community Bank System Inc. 13,753
3,462 Community First Bankshare Inc. 82,655
823 Community Trust Bancorp Inc. 19,238
1,008 Conning Corp. 16,380
1,047 Contifinancial Corp. (a) 3,730
3,018 Cornerstone Realty Income Trust Inc. 32,443
546 Corus Bankshares Inc. 17,370
1,846 Cousins Properties Inc. 62,418
100 CPB Inc. 2,650
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
2,808 Crawford & Co. Class B $ 45,630
1,828 Credit Acceptance Corp. (a) 10,968
3,000 CRIIMI MAE Inc. (a) 6,750
1,711 Crown American Realty 12,512
3,908 Cullen Frost Bankers Inc. 107,714
811 CVB Financial Corp. 21,086
972 Dain Rauscher Corp. 52,609
1,075 Delphi Financial Group Inc. (a) 38,566
200 Delta Financial Corp. (a) 1,275
4,665 Developers Diversified Realty Corp. 77,556
975 Dime Community Bancshares 22,669
2,278 Doral Financial Corp. 39,295
1,552 Downey Financial 34,047
2,600 Dynex Capital Inc. (a) 5,200
14,672 E Trade Group Inc. (a) 585,963
200 East West Bancorp Inc. (a) 2,012
1,193 Eastgroup Properties 23,935
2,166 Eaton Vance Corp. 74,592
1,819 Enhance Financial Services Group Inc. 35,925
1,084 Essex Property Trust Inc. 38,346
976 Everen Capital Corp. 29,097
974 EW Blanch Holdings Inc. 66,415
761 Executive Risk Inc. 64,733
654 F&M Bancorp 21,950
1,129 F&M Bancorporation Inc. 42,620
1,629 F&M National Corp. 54,062
759 Fair Isaac & Co. Inc. 26,612
451 Farmers Capital Bank Corp. 16,010
2,380 FBL Financial Group Inc. 46,410
100 FCNB Corp. (a) 2,187
211 Federal Agriculture Mortgage Corp. (a) 14,480
3,029 Federal Realty Investment Trust 69,478
4,767 Felcor Lodging Trust Inc. 98,915
1,948 Fidelity National Financial Inc. 40,908
653 Financial Federal Corp. (a) 14,366
3,941 First American Financial Corp. 70,445
1,737 First Bancorp 39,191
1,256 First Charter Corp. 31,086
416 First Citizens Bancshares Inc. 33,592
869 First Commerce Bancshares Inc. 20,693
2,277 First Commonwealth Financial Corp. 54,363
1,191 First Federal Capital Corp. 17,567
2,130 First Financial Bancorp 48,191
697 First Financial Bankshares Inc. 22,130
436 First Financial Corp. Indiana 16,486
977 First Financial Holdings Inc. 18,319
713 First Indiana Corp. 15,240
2,818 First Industrial Realty Trust Inc. 77,319
874 First Liberty Financial Corp. 27,422
733 First Merchants Corp. 17,409
1,851 First Midwest Bancorp Inc. 73,577
754 First Republic Bank (a) 21,819
</TABLE>
- ---------
18
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
3,220 First Sentinel Bancorp Inc. $ 28,578
1,106 First Sierra Financial Inc. (a) 27,650
846 First Source Corporation 27,072
1,580 First Union Real Estate Equity &
Mortgage Investments 7,110
1,623 First United Bancshares Inc. 30,228
908 First Washington Bancorp Inc. 18,217
864 First Western Bancorp Inc. 28,944
348 Firstcity Financial Corp. (a) 1,914
1,513 Firstfed Financial Corp. (a) 29,125
431 Flagstar Bancorp Inc. 10,883
1,389 FNB Corp. 37,503
1,234 Foremost Corp. of America 27,148
759 FPIC Insurance Group Inc. (a) 36,811
4,120 Franchise Finance Corp. of America 90,640
790 Franchise Mortgage Acceptance Co. (a) 6,912
962 Freedom Securities Corp. 16,474
1,829 Friedman Billings Ramsey Group Inc. (a) 21,719
1,097 Frontier Financial Corp. 26,876
2,379 Frontier Insurance Group Inc. 36,577
1,985 Gables Residential Trust 47,888
978 GBC Bancorp 19,804
2,824 General Growth Properties Inc. 100,252
545 Getty Realty Corp. 7,834
100 Glacier Bancorp Inc. (a) 2,337
2,482 Glenborough Realty Trust Inc. 43,435
1,736 Glimcher Realty Trust 28,210
359 Gold Banc Corporation Inc. 4,712
1,135 Grand Premier Financial Inc. 14,046
1,195 Great Lakes REIT Inc. 19,419
100 Great Southern Bancorp Inc. (a) 2,662
766 Greater Bay Bancorp 25,469
400 Grubb & Ellis Co. (a) 2,000
653 Guarantee Life Companies Inc. 16,407
1,300 Hambrecht & Quist Group Inc. (a) 48,262
545 Hamilton Bancorp Inc. (a) 13,080
654 Hancock Holding Co. 29,348
1,063 Harbor Florida Bancshares Inc. 13,022
865 Harleysville Group Inc. 17,732
593 Harleysville National Corp. 21,200
647 Harris Financial Inc. 6,996
380 Haven Bancorp Inc. 6,080
2,921 HCC Insurance Holdings Inc. 66,270
2,105 Health Care REIT Inc. 48,941
871 HealthCare Financial Partners Inc. (a) 29,832
2,278 Healthcare Property Investors Inc. 65,777
3,094 Healthcare Realty Trust Inc. 64,974
100 Highlands Insurance Group Inc. (a) 1,050
870 Hilb Rogal & Hamilton Co. 19,466
1,304 Home Properties of New York Inc. 36,023
2,679 Hospitality Properties Trust 72,668
2,116 HSB Group Inc. 87,153
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
2,957 Hudson United Bancorp $ 90,558
1,300 IMPAC Mortgage Holdings Inc. 6,581
2,741 Imperial Bancorp (a) 54,306
2,557 Imperial Credit Commercial Mortgage
Investment Corp. 27,648
2,173 Imperial Credit Industries Inc. (a) 15,415
5,679 Independence Community Bank 76,666
869 Independent Bank Corp. 13,687
1,223 Insignia Financial Group Inc. (a) 12,841
1,010 International Bancshares Corp. 42,736
1,026 Interwest Savings Bank 25,650
1,496 Investment Technology Group
Incorporated (a) 48,433
977 Investors Financial Services Corp. 39,080
2,479 IRT Property Co. 24,480
867 Irwin Financial Corp. 16,906
2,440 JDN Realty Corp. 54,595
611 Jeffbanks Inc. 17,375
1,147 Jefferies Group Incorporated (a) 34,410
289 Jefferson Savings Bancorp Inc. 4,010
435 John Nuveen Co. Class A 18,569
975 JP Realty Inc. 20,048
544 JSB Financial Inc. 27,676
548 Kansas City Life Insurance Co. 23,564
2,022 Kilroy Realty Corp. 49,160
1,952 Koger Equity Inc. 35,990
1,107 LandAmerica Financial Group Inc. 31,826
1,123 Laser Mortgage Management Inc. 3,860
813 Liberty Corp. 44,308
1,517 Life USA Holdings Inc. 30,719
1,948 LNR Property Corp. 41,638
1,582 Local Financial Corp. (a) 15,820
1,520 Long Beach Financial Corp. (a) 22,325
2,157 LTC Properties Inc. 28,041
2,276 Macerich Co. 59,745
1,839 MAF Bancorp Inc. 44,596
438 Mahoning National Bancorp Inc. 19,162
1,624 Manufactured Home Communities Inc. 42,224
287 Markel Corp. (a) 53,669
100 Mason Dixon Bancshares Inc. (a) 4,794
200 Meadowbrook Insurance Group 2,725
798 Medallion Financial Corp. 15,212
1,734 Medical Assurance Inc. (a) 49,527
543 Merchants New York Bancorp Inc. 18,190
3,530 Meristar Hospitality Corporation Inc. 79,204
406 Meta Group Inc. (a) 6,242
2,868 Metris Companies Inc. 116,871
979 MGI Properties 27,657
227 Michigan Financial Corp. 7,349
1,408 Mid-America Apartment Communities Inc. 32,560
555 Mid-America Bancorp 13,667
284 Midland Co. 7,207
</TABLE>
19-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,120 Mills Corp. $ 24,290
436 Mississippi Valley Bancshares Inc. 14,442
1,193 MMI Companies Inc. 20,132
1,955 Morgan Keegan Inc. 37,023
1,142 National Bancorp of Alaska Inc. 30,263
29 National City Bancorporation (a) 605
1,222 National City Bancshares Inc. 39,028
972 National Golf Properties Inc. 23,632
1,628 National Health Investors Inc. 37,139
1,297 National Penn Bancshares Inc. 30,520
124 National Western Life Insurance Co. (a) 11,935
3,349 Nationwide Health Properties Inc. 63,840
897 NBT Bancorp Inc. 18,388
1,235 Northwest Bancorp Inc. 12,350
5,150 Nova Corp. (Georgia) (a) 128,750
21 Nymagic Inc. 328
869 Ocean Financial Corp. 15,751
800 Ocwen Asset Investment Corp. (a) 3,600
3,261 Old National Bancorp 98,034
701 Omega Financial Corp. 24,360
1,514 Omega Healthcare Investors Inc. 39,080
2,597 One Valley Bancorp Inc. 97,387
784 Oriental Financial Group Inc. 18,914
5,859 Oxford Health Plans Inc. (a) 91,181
1,839 Pacific Capital Bancorp 57,928
1,300 Pacific Gulf Properties Inc. 29,412
647 Park National Corp. 64,700
1,206 Paymentech Inc. (a) 30,602
760 PBOC Holdings Inc. (a) 7,600
431 PEC Israel Economic Corp. (a) 13,576
433 Penn Treaty American Corp. (a) 10,419
1,100 Penncorp Financial Group Inc. (a) 550
868 Pennsylvania Real Estate Investment
Trust 18,174
2,587 Peoples Bancorp Inc. 25,789
421 Peoples Holdings Co. 13,682
1,188 PFF Bancorp Inc. (a) 22,275
436 Philadelphia Consolidated Holding
Corp. (a) 10,682
3,350 Phoenix Investment Partners Ltd. 28,894
100 PICO Holdings Inc. (a) 2,531
350 Pinnacle Banc Group Inc. 11,134
1,731 Pioneer Group Inc. (a) 29,860
1,086 PMA Capital Corp. 22,331
2,059 Premier Bancshares Inc. 37,705
100 Premier National Bancorp Inc. (a) 2,000
3,023 Prentiss Properties Trust 71,040
1,625 Presidential Life Corp. 31,891
167 Price Enterprises Inc. 1,200
751 Prime Bancorp Inc. 20,746
302 Prime Bancshares Inc. 5,398
352 Prime Group Realty Trust 6,050
3,267 Prime Retail Inc. 28,382
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
8,285 Prison Realty Corp. $ 81,297
100 Professionals Group Inc. (a) 3,375
976 Profit Recovery Group International Inc.
(a) 46,177
1,925 Provident Bankshares Corp. 44,756
758 PXRE Corp. 13,739
1,351 Queens County Bancorp Inc. 43,739
100 R&G Financial Corp. (a) 1,700
2,429 Radian Group Inc. 118,566
1,954 Realty Income Corp. 46,407
3,028 Reckson Associates Realty Corp. 71,158
758 Redwood Trust Inc. (a) 12,554
2,380 Regency Realty Corp. 52,211
2,717 Reinsurance Group America Inc. 95,774
650 Reliance Bancorp Inc. 17,956
2,927 Republic Bancorp Inc. 44,454
200 Republic Bancorp Kentucky (a) 2,325
382 Republic Bancshares Inc. (a) 7,831
603 Republic Banking Corp. of Florida 11,608
3,819 Republic Security Financial Corp. 31,984
1,588 Resource America Inc. 23,026
1,080 Resource Bancshares Mortgage Group Inc. 11,070
1,830 RFS Hotel Investors Inc. 22,989
1,729 Richmond County Financial Corp. 33,283
1,302 Riggs National Corp. 26,772
911 Risk Capital Holdings Inc. (a) 12,298
619 RLI Corp. 23,986
5,576 Roslyn Bancorp Inc. 95,838
2,073 S&T Bancorp Inc. 52,343
672 Sandy Spring Bancorp Inc. 18,648
870 SCPIE Holdings Inc. 28,384
100 Second Bancorp Inc. (a) 2,925
899 SEI Investments Corp. 79,337
2,062 Selective Insurance Group Inc. 39,307
444 Shoreline Financial Corp. 13,348
2,165 Shurgard Storage Centers Inc. 58,726
1,399 Silicon Valley Bancshares (a) 34,625
523 Simmons First National Corp. 16,801
3,345 Sky Financial Group Inc. 91,151
2,931 Sotheby's Holdings Inc. Class A 111,744
1,838 Southwest Bancorp Texas Inc. (a) 33,084
801 Southwest Securities Group Inc. 57,472
922 Sovran Self Storage Inc. 24,836
3,053 St. Paul Bancorp Inc. 77,851
1,082 State Auto Financial Corp. 14,607
3,306 Staten Island Bancorp Inc. 59,508
307 Sterling Bancorp 5,833
1,787 Sterling Bancshares Inc. 23,901
419 Sterling Financial Corp. 14,351
934 Stewart Information Services Corp. 19,731
1,948 Storage USA Inc. 62,092
323 Student Loan Corp. 14,373
1,738 Summit Properties Inc. 34,325
</TABLE>
- ---------
20
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,298 Sun Communities Inc. $ 46,079
2,898 Sunstone Hotel Investors Inc. 24,633
100 Superior National Insurance Group (a) 2,725
2,712 Susquehanna Bancshare Inc. 47,968
2,922 Taubman Centers Inc. 38,534
1,083 Texas Regional Bancshares 29,444
200 The Mony Group Inc. (a) 6,525
1,723 Thornburg Mortgage Asset Corp. 17,230
1,190 Town & Country Trust 21,271
2,244 Trammell Crow Co. (a) 36,886
758 Trenwick Group Inc. 18,689
976 Triad Guaranty Inc. (a) 17,507
1,894 Triangle Bancorp Inc. 32,080
1,730 Trinet Corporation Realty Trust Inc. 47,899
1,193 Trust Company of New Jersey 28,035
2,004 Trustco Bank Corp. 53,858
2,823 UICI (a) 77,985
1,100 UMB Financial Corp. 47,162
3,147 United Bankshares Inc. 83,395
200 United Community Financial Corp. (a) 2,937
7,791 United Dominion Realty Trust Inc. 91,544
539 United Fire & Casualty Co. 14,014
1,131 United National Bancorp 26,861
708 Urban Shopping Centers Inc. 22,302
977 US Bancorp Inc. 15,388
684 USB Holding Company Inc. 10,474
3,143 UST Corp. 95,076
111 Value Line Inc. 4,329
400 Vesta Insurance Group Inc. 1,850
1,629 Walden Residential Properties Inc. 35,023
2,705 Washington Real Estate Investment Trust 45,816
377 Washington Trust Bancorp Inc. 6,786
2,733 Webster Financial Corp. 74,133
1,513 Weeks Corp. 46,146
1,978 Weingarten Realty Investors 82,581
1,456 Wellsford Real Properties Inc. (a) 15,652
1,518 Wesbanco Inc. 45,540
1,031 West Coast Bancorp 18,042
2,926 Westamerica Bancorporation 106,799
855 Westcorp Inc. 9,619
1,556 Western Bancorp 67,686
1,399 Western Investment Real Estate Trust 16,263
3,142 Westernbank Puerto Rico 41,042
2,294 Westfield America Inc. 34,553
370 White Mountains Insurance Group Inc. 52,170
1,734 Whitney Holding Corp. 68,926
171 Wilshire Financial Services Group Inc.
(a) 57
1,622 WR Berkley Corp. 40,550
255 WSFS Financial Corp. 3,745
756 Zenith National Insurance Corp. 18,616
-----------
14,011,683
-----------
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
HEALTH CARE (8.4%)
1,518 Acuson Corp. (a) $ 26,091
1,167 ADAC Laboratories Inc. (a) 8,461
688 Advance Paradigm Inc. (a) 41,968
2,211 Advanced Tissue Inc. (a) 7,186
1,179 Affymetrix Inc. (a) 58,213
3,824 Alaris Medical Inc. (a) 12,906
863 Algos Pharmaceuticals Corp. (a) 19,040
1,629 Alkermes Inc. (a) 37,671
1,406 Alpharma Inc. 50,001
1,290 Alterra Healthcare Inc. (a) 17,737
1,100 American Homepatient Inc. (a) 1,719
1,228 AmeriPath Inc. (a) 10,592
3,292 Amerisource Health Corp. (a) 83,946
1,083 Andrx Corp. (a) 83,526
3,209 Apria Healthcare Group Inc. (a) 54,553
1,080 Arrow International Inc. 27,945
1,247 Assisted Living Concepts Inc. (a) 3,507
1,004 Aviron (a) 28,865
1,700 AXYS Pharmaceuticals Inc. (a) 5,737
327 Bacou USA Inc. (a) 5,579
2,276 Ballard Medical Products 53,059
651 Barr Laboratories Inc. (a) 25,959
1,639 Bindley Western Industries Inc. 37,792
3,998 Bio Technology General Corp. (a) 25,987
760 Bio-Rad Laboratories Inc. (a) 19,855
1,073 Biomatrix Inc. (a) 23,204
670 Brookdale Living Communities Inc. (a) 9,924
893 Capital Senior Living Corp. (a) 8,930
757 Carematrix Corp. (a) 9,415
1,626 Carter Wallace Inc. 29,573
1,433 Cell Genesys Inc. (a) 6,448
477 Centennial Healthcare Corp. (a) 2,519
2,055 Cephalon Inc. (a) 35,706
1,952 Cerner Corp. (a) 40,931
746 Chattem Inc. (a) 23,732
1,003 Chirex Inc. (a) 32,221
436 Closure Medical Corp. (a) 13,080
1,734 Columbia Laboratories Inc. (a) 14,847
3,524 Concentra Managed Care Inc. (a) 52,199
1,087 Conmed Corp. (a) 33,289
1,085 Cooper Companies Inc. (a) 27,057
100 Copley Pharmaceutical Inc. (a) 1,025
1,841 Cor Therapeutics Inc. (a) 27,155
1,074 Coulter Pharmaceutical Inc. (a) 24,232
4,435 Covance Inc. (a) 106,163
4,360 Coventry Health Care Inc. (a) 47,687
600 Curative Health Services Inc. (a) 3,300
1,192 Cytyc Corp. (a) 23,244
974 Datascope Inc. (a) 31,290
864 Diagnostic Products Corp. 23,868
3,257 Dura Pharmaceuticals Inc. (a) 38,880
</TABLE>
21-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
773 EntreMed Inc. (a) $ 17,392
1,723 Enzo Biochem Inc. (a) 17,015
2,366 Express Scripts Inc. (a) 142,404
3,073 Fisher Scientific International Inc. (a) 68,566
700 Fuisz Technologies Ltd. (a) 2,319
976 Geltex Pharmaceuticals Inc. (a) 17,568
1,514 Genesis Health Ventures Inc. (a) 4,542
2,277 Gilead Sciences Inc. (a) 118,973
1,193 Guilford Pharmaceuticals Inc. (a) 15,211
1,733 Haemonetics Corp. (a) 34,768
1,416 Hanger Orthopedic Group Inc. (a) 20,090
300 Healthplan Services Corp. 2,044
1,904 Henry Schein Inc. (a) 60,333
1,269 Heska Corp. (a) 2,935
600 Hologic Inc. (a) 3,375
2,084 Hooper Holmes Inc. 42,461
1,629 Human Genome Sciences Inc. (a) 64,345
2,714 ICOS Corp. (a) 110,765
1,303 IDEC Pharmaceuticals Corp. (a) 100,412
2,706 IDEXX Laboratories Corp. (a) 63,084
668 IDX Systems Corp. (a) 15,072
1,832 Imclone Systems Inc. (a) 46,487
1,200 Immune Response Corp. (a) 6,450
696 Impath Inc. (a) 18,792
1,736 Incyte Pharmaceuticals Inc. (a) 45,895
1,297 Inhale Therapeutic Systems Inc. (a) 30,885
1,200 Innovative Clinical Solutions Ltd. (a) 1,763
1,781 Invacare Corp. 47,642
2,057 ISIS Pharmaceuticals Inc. (a) 20,956
6,908 Ivax Corp. (a) 97,576
1,733 Jones Pharmaceutical Inc. 68,237
476 Kendle International Inc. (a) 7,616
1,028 KV Pharmaceutical Co. (a) 16,319
15 Labone Inc. 154
4,277 Laboratory Corporation of America
Holdings (a) 12,296
545 Landauer Inc. 16,077
511 Lifecore Biomedical Inc. (a) 5,876
3,252 Ligand Pharmaceuticals Inc. (a) 36,178
2,820 Liposome Company Inc. (a) 53,932
951 Macrochem Corp. (a) 5,647
2,482 Magellan Health Services Inc. (a) 24,820
388 Mariner Post-Acute Network Inc. (a) 218
1,057 Maxxim Medical Inc. (a) 24,641
5,952 Medaphis Corporation (a) 34,224
200 Medco Research Inc. (a) 5,250
761 Medical Manager Corp. (a) 33,674
2,164 Medicis Pharmaceutical Corp. (a) 54,911
3,551 Medimmune Inc. (a) 240,580
2,494 Medquist Inc. (a) 109,112
1,731 Mentor Corp. 32,240
3,461 Mid Atlantic Medical Services Inc. (a) 34,177
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
2,491 Millennium Pharmaceuticals Inc. (a) $ 89,676
285 Mine Safety Appliances Company 18,240
1,085 MiniMed Inc. (a) 83,477
77 Miravant Medical Technologies (a) 549
100 Morrison Health Care Inc. 2,500
439 National Healthcare Corp. (a) 3,183
4,355 NBTY Inc. (a) 28,307
1,141 NCS Healthcare Inc. (a) 6,204
867 Neurogen Corp. (a) 12,680
2,165 Nexstar Pharmaceuticals Inc. (a) 43,165
3,200 NovaCare Inc. (a) 4,800
803 Novoste Corp. (a) 16,863
651 Ocular Sciences Inc. (a) 11,311
973 OEC Medical Systems Inc. (a) 23,838
2,375 Organogenesis Inc. (a) 22,266
2,809 Orthodontic Centers of America Inc. (a) 39,677
1,614 Owens & Minor Inc. 17,754
1,842 Parexel International Corp. (a) 24,522
1,244 Pathogenesis Corp. (a) 17,649
1,676 Patterson Dental Co. (a) 58,241
1,103 Pediatrix Medical Group Inc. (a) 23,439
490 Perclose Inc. (a) 23,551
4,867 Perrigo Co. (a) 37,111
1,298 Pharmaceutical Product
Development Inc. (a) 35,533
200 Pharmaceutical Resources Inc. (a) 1,737
872 Pharmacyclics Inc. (a) 24,416
5,707 Phycor Inc. (a) 42,268
1,373 Priority Healthcare Corp. (a) 47,369
1,407 Protein Design Labs Inc. (a) 31,218
668 Province Healthcare Co. (a) 13,026
5,281 PSS World Medical Inc. (a) 59,081
2,272 Quest Diagnostics Inc. (a) 62,196
1,732 Regeneron Pharmaceutical Inc. (a) 13,531
3,254 Renal Care Group Inc. (a) 84,197
919 Res-Care Inc. (a) 20,907
1,062 Resmed Inc. (a) 35,245
2,027 Respironics Inc. (a) 30,658
1,947 Roberts Pharmaceutical Inc. (a) 47,215
757 Sabratek Corp. (a) 16,559
1,193 Sangstat Medical Corp. (a) 20,579
374 Schein Pharmaceutical Inc. (a) 4,511
2,200 Scios Inc. (a) 7,150
2,227 Sepracor Inc. (a) 180,944
1,841 Serologicals Corp. (a) 14,958
5,957 Sicor Inc. (a) 25,317
1,733 Sierra Health Services Inc. (a) 25,020
1,842 Sola International Inc. (a) 35,804
744 Sugen Inc. (a) 21,948
275 Sun Healthcare Group Inc. (a) 103
1,081 Sunrise Assisted Living Inc. (a) 37,700
1,514 Sunrise Medical Inc. (a) 10,787
</TABLE>
- ---------
22
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
951 Supergen Inc. (a) $ 14,562
541 Superior Consultant Holdings Corp. (a) 13,356
1,409 Techne Corp. (a) 35,753
1,949 Theragenics Corp. (a) 13,521
1,403 Thermo Cardiosystems Inc. (a) 15,258
1,297 Transkaryotic Therapies Inc. (a) 42,801
638 Trex Medical Corp. (a) 3,828
1,732 Triangle Pharmaceuticals Inc. (a) 31,176
1,830 Twinlab Corp. (a) 15,727
2,155 US Bioscience Inc. (a) 21,011
3,998 US Oncology Inc. (a) 47,976
1,016 Ventana Medical Systems Inc. (a) 19,431
4,077 Ventas Inc. 21,914
1,846 Vertex Pharmaceuticals Inc. (a) 44,535
1,193 Vical Inc. (a) 14,465
372 ViroPharma Inc. (a) 2,860
4,008 VISX Inc. (a) 317,383
433 Vital Signs Inc. 8,633
1,700 Vivus Inc. (a) 4,462
820 Wesley Jessen VisionCare Inc. (a) 26,548
869 West Pharmaceutical Services Inc. 34,108
871 Xomed Surgical Products Inc. (a) 42,407
1,900 Zila Inc. (a) 5,759
460 Zonagen Inc. (a) 4,255
-----------
5,854,822
-----------
MACHINERY & MANUFACTURING (1.0%)
1,839 Arvin Industries Inc. 69,652
1,162 Astec Industries Inc. (a) 47,351
931 Bandag Inc. 32,294
1,666 Briggs & Stratton Corp. 96,212
296 BWAY Corp. (a) 4,218
2,597 Cadiz Land Inc. (a) 24,509
3,503 Catalytica Inc. (a) 49,042
1,046 Cavalier Homes Inc. 8,564
653 Chemed Corp. 21,712
1,737 CLARCOR Inc. 33,329
974 Commercial Intertech Corp. 15,523
1,716 Delco Remy International Inc. (a) 18,876
1,554 Fairchild Corp. (a) 19,814
573 Hardinge Inc. 10,063
1,732 Kaman Corp. 27,171
1,676 Modine Manufacturing Co. 54,575
915 Monaco Coach Corp. (a) 38,716
491 Nacco Industries Inc. 36,089
1,014 Rohn Industries Inc. (a) 1,394
816 Stoneridge Inc. (a) 11,016
2,861 Unova Inc. (a) 45,418
-----------
665,538
-----------
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
MATERIALS & PROCESSES (6.7%)
2,384 A. Schulman Inc. $ 40,975
1,080 ACX Technologies Inc. (a) 17,550
100 AEP Industries Inc. (a) 3,025
543 AFC Cable Systems Inc. (a) 19,175
1,516 Aftermarket Technology Corp. (a) 17,245
3,176 Agribiotech Inc. (a) 19,255
4,676 Airgas Inc. (a) 57,281
1,321 Albany International Corp. (a) 27,411
1,410 Albemarle Corp. 32,606
100 Alltrista Corp. (a) 3,300
1,836 Amcol International Corp. 26,393
1,185 American Business Products Inc. 18,071
100 American Woodmark Corp. (a) 3,525
38 Ameron International Corp. 1,677
1,629 Anicom Inc. (a) 17,105
1,735 Antec Corp. (a) 55,628
1,063 AO Smith Corp. 29,764
2,058 Apogee Enterprises Inc. 27,654
1,624 Applied Industrial Technologies Inc. 30,856
2,286 AptarGroup Inc. 68,580
134 Avatar Holdings Inc. (a) 2,538
1,136 Barnes Group Inc. 24,708
379 Barnett Inc. (a) 2,843
1,840 Belden Inc. 44,045
2,156 BMC Industries Inc. 22,234
1,706 Borg-Warner Auto Inc. 93,830
1,519 Brady Wholesale Co. Class A 49,368
1,100 Breed Technologies Inc. (a) 2,475
1,194 Brush Wellman Inc. 21,641
1,835 Buckeye Technologies Inc. (a) 27,869
4,326 Burlington Industries Equity Inc. (a) 39,204
431 Butler Manufacturing Co. 12,041
2,695 Calgon Carbon Corp. 16,002
1,733 Cambrex Corp. 45,491
1,842 Caraustar Industries Inc. 45,474
300 Carbide Graphite Group Inc. (a) 4,294
219 Carbo Ceramics Inc. 6,666
1,429 Carpenter Technology Corp. 40,816
652 Centex Construction Products Inc. 22,250
350 Chase Industries Inc. (a) 2,953
1,405 Chemfirst Inc. 34,159
1,410 Chesapeake Corp. 52,787
864 Cleveland Cliffs Inc. 27,972
200 CMI Corp. (a) 1,825
4,533 Collins & Aikman Corp. (a) 34,564
2,842 Comfort Systems USA Inc. (a) 51,156
368 Commonwealth Industries Inc. 4,600
526 Cone Mills Corp. (a) 3,156
564 Crossmann Communities Inc. (a) 16,391
300 Culp Inc. 3,150
2,701 Dal-Tile International Inc. (a) 30,724
</TABLE>
23-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
869 Deltic Timber Corp. $ 23,409
1,733 Dexter Corp. 70,728
1,985 Earthshell Corp. (a) 13,895
974 Elcor Corp. 42,552
650 Encore Wire Corp. (a) 5,891
1,299 Exide Corp. 19,160
2,601 Ferro Corp. 71,528
978 Florida Rock Industries Inc. 44,499
81 Foamex International Inc. (a) 451
978 Forest City Enterprises 27,384
3,139 Foster Wheeler Corp. 44,338
1,406 Furon Co. 26,714
800 Galey & Lord Inc. (a) 3,500
4,106 Gaylord Container Corp. Class A (a) 32,591
300 General Chemical Group Inc. 938
651 Gentek Inc. (a) 9,033
1,735 Geon Co. 55,954
2,377 Georgia Gulf Corp. 40,112
652 Giant Cement Holding Inc. (a) 14,915
1,371 Granite Construction Inc. 40,187
1,080 Greif Brothers Corp. 27,540
2,387 Group Maintenance America Corp. (a) 30,882
424 Gulf Island Fabrication Inc. (a) 5,062
1,328 Hayes Lemmerz International Inc. (a) 39,010
976 HB Fuller Company 66,734
1,211 Hexcel Corp. (a) 12,261
1,635 Hughes Supply Inc. 48,539
78 Hunt Corp. 644
1,085 IMCO Recycling Inc. 18,581
1,503 Insituform Technology Inc. (a) 32,502
3,564 Interface Inc. 30,740
1,409 Intermet Corp. 21,311
1,192 Ionics Inc. (a) 43,508
100 IT Group Inc. (a) 1,606
759 ITEQ Inc. (a) 1,589
1,296 Ivex Packaging Corp. (a) 28,512
1,300 Juno Lighting Inc. 32,500
2,383 Kaydon Corp. 80,128
835 Kellstrom Industries Inc. (a) 15,239
576 Ladish Company Inc. (a) 4,464
434 Lawson Products Inc. 10,931
1,730 Lilly Industries Inc. 32,113
1,410 Lone Star Industries Inc. 52,963
1,629 Lone Star Technologies Inc. (a) 28,915
3,896 Longview Fibre Co. 60,875
1,290 Lydall Inc. (a) 14,835
3,353 MA Hanna Co. 55,115
1,013 MacDermid Inc. 47,105
2,691 Mascotech Inc. 45,579
1,188 Maverick Tube Corp. (a) 16,558
249 Maxxam Inc. (a) 16,061
100 McWhorter Technologies Inc. (a) 1,444
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
100 Mestek Inc. (a) $ 2,200
1,431 Minerals Technologies Inc. 79,868
2,051 Mississippi Chemical Corp. 20,125
2,695 Mueller Industries Inc. (a) 91,462
1,373 Myers Industries Inc. 27,460
112 NCH Corp. 5,544
1,405 NCI Building Systems Inc. (a) 30,032
1,724 NL Industries Inc. 19,180
726 Nortek Inc. (a) 22,733
1,736 OM Group Inc. 59,892
2,697 Paxar Corporation (a) 24,273
332 Penford Corp. 5,395
1,947 PH Glatfelter Co. 28,475
2,053 Polymer Group Inc. (a) 24,123
2,175 Potlatch Corp. 95,564
225 Puerto Rican Cement Company Inc. 7,467
1,082 Quanex Corp. 30,837
200 Quanta Services Inc. (a) 8,800
2,044 Rayonier Inc. 101,817
650 Republic Group Inc. 11,700
913 Rock Tenn Company 15,236
544 Rogers Corp. (a) 16,048
646 Rouge Industries Inc. 6,218
1,355 Scotts Co. (a) 64,532
1,188 Service Experts Inc. (a) 26,062
135 Shaw Group Inc. (a) 2,143
127 Shiloh Industries Inc. (a) 1,842
1,677 Shorewood Packaging Corp. (a) 30,920
795 Silgan Holdings Inc. (a) 15,801
1,395 Simpson Industries Inc. 14,299
325 Simpson Manufacturing Company Inc. (a) 15,438
974 Spartech Corp. 30,803
811 SPS Technologies Inc. (a) 30,413
759 Standard Motor Products Inc. (a) 18,596
1,192 Standard Products Co. 30,545
866 Standex International Corp. 23,707
543 Stepan Co. 13,779
1,516 Superior Industries International Inc. 41,406
1,442 Synetic Inc. (a) 99,138
100 Synthetic Industries Inc. (a) 2,950
651 Tejon Ranch Corp. 17,089
3,037 Terra Industries Inc. 12,148
2,743 Tetra Tech Inc. (a) 45,260
49 Tetra Technologies Inc. (a) 450
1,520 Texas Industries Inc. 58,900
1,190 Thomas Industries Inc. 24,395
1,083 TJ International Inc. 33,573
3,563 Tower Automotive Inc. (a) 90,634
1,474 Tredegar Industries Inc. 32,060
21 Tremont Corporation 452
1,085 Universal Forest Products Inc. 23,328
100 US Can Corp. (a) 2,225
</TABLE>
- ---------
24
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,304 Valmont Industries Inc. $ 22,209
1,760 Watsco Inc. 28,820
1,191 Watts Industries Inc. 22,852
4,018 Wausau-Mosinee Paper Corp. 72,324
1,082 Webb Corp. (a) 25,833
2,410 Wellman Inc. 38,409
1,081 Wolverine Tube Inc. (a) 27,160
1,514 Wyman Gordon Co. (a) 29,239
1,080 Wynns International Inc. 19,913
200 Zoltek Companies Inc. (a) 1,588
-----------
4,641,611
-----------
MINING & METALS (1.1%)
3,431 Alaska Steel Holding Corp. 77,198
864 AM Castle & Co. 14,688
6,790 Armco Inc. (a) 44,984
2,881 Asarco Inc. 54,199
9,436 Battle Mountain Gold Co. 23,000
9,888 Bethlehem Steel Corp. (a) 76,014
1,300 Birmingham Steel Corp. 5,363
51 Century Aluminum Co. 316
977 Commercial Metals Co. 27,845
423 Gibraltar Steel Corp. (a) 10,469
3,700 Hecla Mining Co. (a) 7,631
2,167 Kaiser Aluminum Corp. (a) 19,232
7,424 LTV Corp. 49,648
2,230 Metals USA Inc. (a) 28,433
1,718 National Steel Corp. 14,388
1,070 NS Group Inc. (a) 9,898
1,726 Oregon Steel Mills Inc. 22,977
759 Reliance Steel & Aluminum Co. 29,601
715 Roanoke Electric Steel Corp. 12,423
1,083 RTI International Metals Inc. (a) 15,907
1,847 Ryerson Tull Inc. 41,673
269 Schnitzer Steel Industries 6,036
1,972 Southern Peru Copper Corp. 28,471
600 Special Metals Corp. (a) 3,488
2,604 Steel Dynamics Inc. (a) 40,281
2,326 Stillwater Mining Co. (a) 76,031
1,815 Titanium Metals Corp. 20,192
824 WHX Corp. (a) 5,408
-----------
765,794
-----------
OIL, GAS, & OTHER ENERGY (3.2%)
1,340 Arch Coal Inc. 18,593
760 Atwood Oceanics Inc. (a) 23,750
2,384 Barrett Resources Corporation (a) 91,486
540 Belco Oil & Gas Corp. (a) 3,746
1,600 Benton Oil & Gas Co. (a) 3,200
1,405 Berry Petroleum Co. Class A 19,582
1,731 Cabot Oil & Gas Corp. 32,240
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
375 Cal Dive International Inc. (a) $ 11,203
1,901 Calpine Corp. (a) 102,654
4,916 Chesapeake Energy Corp. (a) 14,441
800 Comstock Resources Inc. (a) 2,650
2,922 Cross Timbers Oil Co. 43,465
2,069 Devon Energy Corp. 73,967
406 Dril-Quip Inc. (a) 9,313
1,630 Eastern Enterprises 64,793
3,149 EEX Corp. (a) 21,846
2,494 Equitable Resources Inc. 94,149
4,819 Ethyl Corp. 28,914
2,596 Forest Oil Corp. (a) 32,612
862 Friede Goldman Inc. (a) 11,960
1,600 Frontier Oil Corp. (a) 10,900
11,127 Grey Wolf Inc. (a) 27,818
376 Gulfmark Offshore Inc. (a) 7,144
2,145 Hanover Compressor Co. (a) 68,908
9,968 Harken Energy Corp. (a) 16,198
3,730 Helmerich & Payne Inc. 88,821
28 Holly Corp. 375
1,195 HS Resources Inc. (a) 17,626
1,500 IRI International Corp. (a) 6,938
2,400 KCS Group Inc. 1,500
7,400 Kelly Oil & Gas Corp. (a) 1,619
5,500 Key Energy Group Inc. (a) 19,594
1,411 Louis Dreyfus Natural Gas Corp. (a) 30,425
4,001 Marine Drilling Companies Inc. (a) 54,764
200 McMoran Exploration Company (a) 4,438
3,354 Meridian Resource Corp. (a) 12,997
1,492 Mitchell Energy & Development Corp. 28,814
2,706 Newfield Exploration Co. (a) 76,952
5,195 Newpark Resources Inc. (a) 46,106
708 North Carolina Natural Gas Corp. 24,249
1,614 Nuevo Energy Co. (a) 21,386
1,730 Oceaneering International Inc. (a) 27,896
1,058 Octel Corporation (a) 13,225
459 Omni Energy Services Corp. (a) 1,607
2,384 Oneok Inc. 75,692
4,957 Parker Drilling Co. (a) 16,420
2,486 Patterson Energy Inc. (a) 24,549
423 Penn Virginia Corp. 8,354
2,533 Peoples Energy Corp. 95,462
1,297 Plains Resources Inc. (a) 24,643
3,128 Pogo Producing Co. 58,259
1,622 Pool Energy Services Co. (a) 32,947
3,789 Pride International Inc. (a) 40,021
1,908 Range Resources Corp. 11,687
1,176 RPC Inc. 10,290
12,375 Santa Fe Snyder Corp. (a) 94,359
870 Seacor Smit Inc. (a) 46,545
1,836 Seitel Inc. (a) 29,720
762 St. Mary Land & Exploration Co. 15,669
</TABLE>
25-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
977 Stone Energy Corp. (a) $ 41,400
1,405 Superior Energy Services Inc. (a) 7,157
1,184 Swift Energy Co. (a) 12,654
1,763 Syntroleum Corp. (a) 15,757
2,485 Tesoro Petroleum Corp. (a) 39,605
647 The Houston Exploration Co. (a) 12,253
493 Thermo Ecotek Corp. (a) 3,944
1,707 Titan Exploration Inc. (a) 8,535
1,954 Tom Brown Inc. (a) 30,409
2,049 TransMontaigne Oil Co. (a) 25,741
1,000 Trico Marine Services Inc. (a) 6,563
3,353 Tuboscope Inc. (a) 45,894
942 UTI Energy Corp. (a) 15,602
1,731 Veritas DGC Inc. (a) 31,699
2,930 Vintage Petroleum Inc. 31,498
-----------
2,228,192
-----------
TECHNOLOGY (19.6%)
1,147 3Dfx Interactive Inc. (a) 17,922
566 Aavid Thermal Technologies Inc. (a) 12,806
3,454 Acclaim Entertainment Inc. (a) 22,019
1,407 Actel Corp. (a) 20,753
3,716 Acxiom Corp. (a) 92,668
973 Adaptive Broadband Corp. (a) 21,284
1,412 Adtran Inc. (a) 51,362
573 Advanced Energy Industries Inc. (a) 23,242
638 Advantage Learning System Inc. (a) 14,116
431 Advent Software Inc. (a) 28,877
2,058 Allen Telecom Inc. (a) 22,124
613 Alliant Techsystems Inc. (a) 53,025
3,144 American Management Systems Inc. (a) 100,805
2,384 Ametek Inc. 54,832
2,863 Amkor Technology Inc. (a) 29,346
1,193 Amphenol Corp. (a) 47,422
825 Anacomp Inc. (a) 14,025
446 Analogic Corp. 13,868
1,521 Analysts International Corp. 21,864
1,824 Anixter International Inc. (a) 33,288
593 APEX PC Solutions Inc. (a) 12,157
1,644 Applied Micro Circuits Corp. (a) 135,219
268 Aris Corp. (a) 2,228
2,383 Artesyn Technologies Inc. (a) 52,873
538 Artisan Components Inc. (a) 6,254
126 Aspec Technology Inc. (a) 110
1,300 Aspect Development Inc. (a) 24,050
3,680 Aspect Telecommunication Co. (a) 35,880
1,843 Aspen Technology Inc. (a) 21,655
1,194 ATMI Inc. (a) 35,522
6,676 Aura Systems Inc. (a) 1,461
2,166 Avanti Corp. (a) 27,346
1,710 Avid Technology Inc. (a) 27,574
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
755 AVT Corp. (a) $ 28,596
1,977 Axent Technologies Inc. (a) 21,994
762 Barra Inc. (a) 19,241
3,177 BEA Systems Inc. (a) 90,743
1,034 Bell & Howell Co. (a) 39,098
760 Benchmark Electronics Inc. (a) 27,313
1,736 Bisys Group Inc. (a) 101,556
1,301 Black Box Corp. (a) 65,213
4,005 Brightpoint Inc. (a) 24,280
1,377 Broadvision Inc. (a) 101,554
1,843 Burr Brown Corp. (a) 67,500
972 C&D Technologies Inc. 29,768
2,599 C-Cube Microsystems Inc. (a) 82,356
2,161 Cable Design Technologies Corp. (a) 33,360
1,003 CD Radio Inc. (a) 30,560
979 CDW Computer Centers Inc. (a) 43,076
2,808 Cellnet Data Systems Inc. (a) 25,272
2,594 Cellstar Corporation (a) 20,428
2,164 Checkpoint Systems Inc. (a) 19,341
2,795 CHS Electronics Inc. (a) 12,228
4,980 Cirrus Logic Inc. (a) 44,198
1,628 Clarify Inc. (a) 67,155
2,526 CNET Inc. (a) 145,561
2,494 Cognex Corp. (a) 78,717
1,737 Coherent Inc. (a) 32,352
756 Cohu Inc. 26,744
411 Com21 Inc. (a) 7,013
2,937 Commscope Inc. (a) 90,313
977 Complete Business Solutions Inc. (a) 17,525
2,330 Compucom Systems Inc. (a) 9,611
2,315 Computer Horizons Corp. (a) 31,976
578 Computer Learning Centers Inc. (a) 2,854
1,298 Computer Task Group Inc. 22,066
932 Concord Communications Inc. (a) 41,940
999 Cotelligent Group Inc. (a) 7,805
1,517 Credence Systems Corp. (a) 56,319
3,696 CSG Systems International Inc. (a) 96,789
100 CT Communications Inc. (a) 4,113
790 CTS Corp. 55,300
431 Cubic Corp. 10,560
2,058 Cymer Inc. (a) 51,450
6,409 Cypress Semiconductor Corp. (a) 105,749
2,127 Dallas Semiconductor Corp. 107,414
3,787 Data General Corp. (a) 55,148
435 Data Processing Resource Corp. (a) 10,277
757 Data Transmission Network Corp. (a) 21,291
1,197 Datastream Systems Inc. (a) 19,152
400 Davox Corp. (a) 4,775
542 DBT Online Inc. (a) 17,751
1,005 DecisionOne Holdings Corp. (a) 1,884
342 Deltek Systems Inc. (a) 3,377
1,410 Dendrite International Inc. (a) 50,936
</TABLE>
- ---------
26
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
727 Dialogic Corp. (a) $ 31,897
2,101 Diamond Multimedia Systems Inc. (a) 8,667
583 Digi International Inc. (a) 6,085
4,554 Digital Microwave Corp. (a) 58,064
2,166 DII Group Inc. (a) 80,819
1,678 Dionex Corp. (a) 67,959
972 Documentum Inc. (a) 12,697
2,820 DSP Communications Inc. (a) 81,428
327 Dupont Photomasks Inc. (a) 15,655
1,286 Earthlink Network Inc. (a) 79,009
974 Electro Scientific Industries Inc. (a) 40,695
1,513 Electroglas Inc. (a) 30,260
3,834 Electronics For Imaging Inc. (a) 196,972
570 Engineering Animation Inc. (a) 12,077
2,699 Epicor Software Corporation (a) 20,074
1,299 Esterline Technologies Corp. (a) 18,673
1,621 ETEC Systems Inc. (a) 53,898
200 Evans & Sutherland Computer Corp. (a) 2,613
400 Excel Switching Corp. (a) 11,975
1,824 Exodus Communications Inc. (a) 218,766
703 Factset Research Systems Inc. 39,807
2,216 FileNet Corp. (a) 25,346
214 Forrester Research Inc. (a) 5,350
326 Franklin Electric Company Inc. 21,190
1,733 FSI International Inc. (a) 14,406
434 General Binding Corp. 10,199
1,555 General Magic Inc. (a) 5,491
2,285 General Semiconductor Inc. (a) 20,851
640 Genesys Telecommunication Laboratories
Inc. (a) 16,000
861 Genlyte Group Inc. (a) 19,319
2,168 Genrad Inc. (a) 45,122
1,411 Gerber Scientific Inc. 31,130
4,856 Glenayre Technologies Inc. (a) 17,451
711 Great Plains Software Inc. (a) 33,550
2,560 GT Interactive Software Corp. (a) 8,960
3,080 Gtech Holdings Corp. (a) 72,573
200 Hach Co. 3,625
978 HADCO Corp. (a) 38,876
2,256 Harbinger Corp. (a) 28,200
799 Harmon Industries Inc. 15,830
1,408 Helix Technology Corp. 33,704
1,620 HMT Technology Corp. (a) 4,050
1,859 HNC Software Inc. (a) 57,280
700 HTE Inc. (a) 2,363
1,513 Hutchinson Technology Inc. (a) 41,986
1,026 Hypercom Software Corp. (a) 9,811
2,239 Hyperion Solutions Corp. (a) 39,882
813 IGEN Inc. (a) 23,679
3,029 Imation Corp. (a) 75,157
919 IMRglobal Corporation (a) 17,691
2,924 Inacom Corp. (a) 36,916
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,499 Indus International Inc. (a) $ 6,464
1,100 Industri-Matematik International Co. (a) 2,681
319 Information Architects Corp. (a) 758
2,260 Information Resources Inc. (a) 19,775
12,806 Informix Corp. (a) 109,252
3,394 Infoseek Corp. (a) 162,700
2,156 infoUSA Inc. (a) 18,326
1,085 Innovex Inc. 15,190
3,174 Inprise Corp. (a) 15,473
3,560 Input/Output Inc. (a) 26,923
783 INSpire Insurance Solutions Inc. (a) 11,354
6,401 Integrated Device Technology Inc. (a) 69,611
1,303 Integrated Systems Inc. (a) 15,310
142 Intelligroup Inc. (a) 1,012
1,518 Inter-Tel Inc. 27,704
3,978 Interdigital Communications Corp. (a) 18,398
3,224 Intergraph Corp. (a) 24,986
2,391 International Network Services (a) 96,537
3,896 International Rectifier Corp. (a) 51,866
993 International Telecommunication Data
Systems (a) 15,888
100 IPC Communications Inc. (a) 6,825
736 ISS Group Inc. (a) 27,784
300 Itron Inc. (a) 2,569
3,289 Jabil Circuit Inc. (a) 148,416
975 Jack Henry & Associates Inc. 38,269
1,531 JDA Software Group Inc. (a) 14,257
2,819 Kemet Corp. (a) 64,661
2,160 Kent Electronics Corp. (a) 42,795
4,132 Komag Inc. (a) 13,687
785 Kopin Corp. (a) 18,791
922 Kronos Inc. (a) 41,951
509 L-3 Communications Holdings Inc. (a) 24,591
1,686 Lattice Semiconductor Corp. (a) 104,954
2,878 Legato Systems Inc. (a) 166,205
2,773 Level One Communications Inc. (a) 135,704
1,406 Littelfuse Inc. (a) 27,066
3,148 Lycos Inc. (a) 289,223
2,502 Macromedia Inc. (a) 88,196
2,154 Magnetek Inc. (a) 22,752
324 Manhattan Associates Inc. (a) 2,673
1,412 Manugistics Group Inc. (a) 20,474
1,282 Mapics Inc. (a) 13,541
3,889 Mark IV Industrials Inc. 82,155
1,195 Marshall Industries Inc. (a) 42,945
971 Mastec Inc. (a) 27,431
1,457 Mastech Corp. (a) 27,137
1,524 MEMC Electronic Materials Inc. (a) 18,574
4,554 Mentor Graphics Corp. (a) 58,348
2,387 Mercury Interactive Corp. (a) 84,440
6,215 Merisel Inc. (a) 14,178
2,604 Methode Electronics Inc. 59,567
</TABLE>
27-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
437 Metro Information Services Inc. (a) $ 7,265
200 Miami Computer Supply Corp. (a) 3,775
978 Micrel Semiconductor Inc. (a) 72,372
900 Microage Inc. (a) 3,431
3,640 Microchip Technology Inc. (a) 172,445
771 Micromuse Inc. (a) 38,454
2,764 Micron Electronics Inc. (a) 27,813
1,192 Micros Systems Inc. (a) 40,528
2,518 Mindspring Enterprises Inc. (a) 111,579
2,286 MMC Networks Inc. (a) 102,299
134 Mobius Management Systems Inc. (a) 1,106
100 Molecular Devices Corp. (a) 3,750
1,732 MRV Communications Inc. (a) 22,733
1,920 MTI Technology Corp. (a) 25,080
1,405 MTS Systems Corp. 17,123
2,110 National Computer Systems Inc. 71,213
1,134 National Instruments Corp. (a) 45,785
743 National Processing Inc. (a) 7,523
600 Natural Microsystems Corp. (a) 5,738
1,648 NeoMagic Corp. (a) 13,854
4,568 Network Appliance Inc. (a) 255,237
1,623 Network Equipment Technologies Inc. (a) 16,027
628 Network Solutions Inc. (a) 49,691
1,204 New Era of Networks Inc. (a) 52,901
868 Nichols Research Corp. (a) 18,988
575 Norstan Inc. (a) 7,152
100 Northeast Optic Network Inc. (a) 1,506
2,798 Novellus Systems Inc. (a) 190,964
1,302 Oak Industries Inc. (a) 56,881
2,400 Oak Technology Inc. (a) 8,700
700 Objective Systems Integrators (a) 1,925
1,733 Open Market Inc. (a) 24,587
215 Optical Cable Corp. (a) 2,365
3,780 P-Com Inc. (a) 19,786
5,229 Pairgain Technologies Inc. (a) 60,134
653 Park Electrochemical Corp. 18,774
801 Pegasus Systems Inc. (a) 29,987
587 Pegasystems Inc. (a) 6,017
1,266 Peregrine Systems Inc. (a) 32,520
1,520 Photronics Inc. (a) 37,240
3,031 Picturetel Corp. (a) 24,248
1,951 Pioneer Standard Electronics Inc. 23,412
1,087 Plexus Corp. (a) 32,746
4,454 PMC Sierra Inc. (a) 262,508
1,266 Polycom Inc. (a) 49,374
440 Pomeroy Computer Resources Inc. (a) 6,133
326 Powerwave Technologies Inc. (a) 10,514
2,492 Premiere Technologies Inc. (a) 28,658
1,837 Premisys Communications Inc. (a) 13,433
1,300 PRI Automation Inc. (a) 47,125
1,577 Primark Corp. (a) 44,255
642 Primex Technologies Inc. 13,843
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,300 Progress Software Corp. (a) $ 36,725
539 Project Software & Development Inc. (a) 16,844
3,693 Psinet Inc. (a) 161,569
200 Publicard Inc. (a) 2,038
1,266 Q Logic Corp. (a) 167,112
600 QAD Inc. (a) 1,838
543 QRS Corp. (a) 42,354
1,540 Quadramed Corp. (a) 12,513
540 Radiant Systems Inc. (a) 7,695
1,085 Rambus Inc. (a) 100,023
6,190 Rational Software Corp. (a) 203,883
1,993 Rayovac Corp. (a) 45,216
3,359 Read-Rite Corp. (a) 20,836
1,303 RealNetworks Inc. (a) 89,744
534 Recoton Corp. (a) 4,856
1,513 Remec Inc. (a) 24,397
1,626 Remedy Corp. (a) 43,699
1,280 Renaissance Worldwide Inc. (a) 10,200
283 RWD Technologies Inc. (a) 2,954
3,999 S3 Inc. (a) 36,366
2,061 Safeguard Scientifics Inc. (a) 127,782
2,396 Saga Systems (a) 30,549
874 Sanchez Computer Associates Inc. (a) 30,262
1,412 Sandisk Corp. (a) 63,540
759 Sapient Corporation (a) 42,978
869 Sawtek Inc. (a) 39,865
640 SCB Computer Technology Inc. (a) 3,360
908 SCM Microsystems Inc. (a) 42,109
1,953 SDL Inc. (a) 99,725
2,711 Security Dynamics Technologies Inc. (a) 57,609
971 Semtech Inc. (a) 50,613
3,139 Sequent Computer Systems Inc. (a) 55,717
2,444 Silicon Valley Group Inc. (a) 41,090
757 Siliconix Inc. (a) 25,927
1,295 Sipex Corp. (a) 26,548
1,136 SLI Inc. (a) 30,672
1,952 SMART Modular Technologies Inc. (a) 33,916
422 Spectra-Physics Lasers Inc. (a) 3,482
2,208 SpeedFam-IPEC Inc. (a) 35,466
600 Splash Technology Holdings Inc. (a) 4,219
1,115 Sportsline USA Inc. (a) 40,001
417 SPR Inc. (a) 2,215
845 SS&C Technologies Inc. (a) 6,443
2,346 Star Telecommunications Inc. (a) 18,328
2,604 Structural Dynamics Research Corp. (a) 48,337
300 SVI Holdings Inc. (a) 3,600
6,216 Sybase Inc. (a) 68,376
1,250 Sykes Enterprises Inc. (a) 41,719
4,119 Symantec Corp. (a) 105,035
489 Syntel Inc. (a) 4,401
1,700 System Software Associates Inc. (a) 2,816
2,489 Systems & Computer Technology Corp. (a) 36,246
</TABLE>
- ---------
28
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,215 TAVA Technologies Inc. (a) $ 9,340
1,082 Technitrol Inc. 34,895
3,136 Technology Solutions Co. (a) 33,908
2,552 Tekelec (a) 31,103
1,655 Teletech Holdings Inc. (a) 16,757
592 Telxon Corp. 4,699
1,291 Thermedics Inc. (a) 12,022
459 Thermo Bioanalysis Corp. (a) 7,975
320 Thermo Optek Corp. (a) 3,320
221 Thermoquest Corp. (a) 2,942
49 Thermotrex Corp. (a) 374
754 Transaction Network Services Inc. (a) 22,055
2,325 Transaction Systems Architects Inc. (a) 90,675
1,628 Trimble Navigation Ltd. (a) 20,961
2,083 Tyler Technologies Inc. (a) 14,321
1,521 Ultratech Stepper Inc. (a) 22,910
200 Unigraphics Solutions Inc. (a) 3,763
2,382 Unitrode Corp. (a) 68,334
4,651 US Web Corp. (a) 103,194
1,923 Vantive Corp. (a) 21,994
756 Veeco Instruments Inc. (a) 25,704
555 Verisign Inc. (a) 47,869
600 Viasoft Inc. (a) 2,100
1,407 Vicor Corp. (a) 29,811
4,836 Vishay Intertechnology Inc. (a) 101,556
1,844 Visio Corp. (a) 70,187
1,467 Visual Networks Inc. (a) 46,944
7,391 VoiceStream Wireless Corporation (a) 210,182
1,083 VWR Scientific Products Corp. (a) 39,733
3,248 Wallace Computer Services Inc. 81,200
1,683 WAVO Corp. (a) 10,729
1,377 Westell Technologies Inc. (a) 9,596
2,064 Whittman-Hart Inc. (a) 65,532
2,439 Wind River Systems Inc. (a) 39,176
650 Woodward Governor Co. 16,900
3,357 World Access Inc. (a) 47,418
500 X-Rite Inc. 3,219
1,737 Xircom Inc. (a) 52,219
1,733 Zebra Technologies Corp. (a) 66,612
-----------
13,551,548
-----------
TRANSPORTATION (2.9%)
2,057 AAR Corp. 46,668
2,552 Air Express International Corp. 64,757
200 Airnet Systems Inc. (a) 2,700
4,543 Airtran Holdings Inc. (a) 26,122
1,974 Alaska Air Group Inc. (a) 82,415
2,895 Alexander & Baldwin Inc. 64,414
2,800 America West Holdings Corp. (a) 52,850
1,520 American Freightways Corp. (a) 29,735
292 Amtran Inc. (a) 7,191
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,616 Arctic Cat Inc. $ 14,443
1,410 Arnold Industries Inc. 21,767
902 Atlantic Coast Airlines Holdings Inc.
(a) 17,138
1,030 Atlas Air Inc. (a) 33,218
1,304 Aviall Inc. (a) 24,532
1,811 Avis Rent A Car Inc. (a) 52,745
755 Avondale Industries Inc. (a) 29,445
3,065 CH Robinson Worldwide Inc. 112,639
975 Circle International Group Inc. 21,328
1,749 Coach USA Inc. (a) 73,349
1,195 Coachmen Industries Inc. 27,784
1,521 Consolidated Freightways Corp. (a) 19,535
340 Covenant Transport Inc. (a) 5,355
823 Dispatch Management Services Corp. (a) 2,289
546 Eagle USA Airfreight Inc. (a) 23,171
3,586 Expeditors International 97,719
865 Florida East Coast Industries Inc. 38,276
1,732 Fritz Companies Inc. (a) 18,619
129 Greenbrier Companies Inc. 1,355
2,217 Halter Marine Group Inc. (a) 14,688
1,299 Heartland Express Inc. (a) 21,271
1,000 Hvide Marine Inc. (a) 2,156
1,624 JB Hunt Transport Services Inc. 26,390
1,449 Kirby Corp. (a) 30,701
738 Kitty Hawk Inc. (a) 5,812
484 Knight Transportation Inc. (a) 10,346
759 Landstar Systems Inc. (a) 27,395
2,034 Mesa Air Group Inc. (a) 15,287
918 Mesaba Holdings Inc. (a) 11,705
1,031 Midwest Express Holdings Inc. (a) 35,054
3,427 Miller Industries Inc. (a) 13,494
2,003 Motivepower Industries Inc. (a) 35,553
652 MS Carriers Inc. (a) 19,336
2,496 Newport News Shipbuilding Inc. 73,632
1,623 Offshore Logistics Inc. (a) 18,056
2,055 Overseas Shipholding Group Inc. 26,458
1,619 Pittston Bax Group 15,381
1,713 Polaris Industries Inc. 74,516
1,109 Roadway Express Inc. 21,487
800 Rural/Metro Corp. (a) 7,700
594 Skyline Corp. 17,412
1,508 Skywest Inc. 37,606
2,686 Swift Transportation Inc. (a) 59,092
540 Thor Industries Inc. 15,323
4,434 Trans World Airlines Inc. (a) 21,893
1,951 US Freightways Corp. 90,356
592 US Xpress Enterprises Inc. (a) 6,327
1,732 Wabash National Corp. 33,558
2,164 Werner Enterprises Inc. 44,903
1,229 Westinghouse Air Brake Co. 31,877
973 Winnebago Industries Inc. 21,893
3,766 Wisconsin Central Transportation Co. (a) 71,083
</TABLE>
29-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
1,730 Yellow Corp. (a) $ 30,708
-----------
2,000,008
-----------
UTILITIES & ENERGY (7.9%)
972 Aerial Communications Inc. (a) 13,122
4,330 AGL Resources Inc. 79,834
2,600 Aliant Communications Inc. 120,088
1,405 American Mobile Satellite Corp. (a) 23,007
100 American States Water (a) 2,838
815 Aquarion Co. 28,321
2,040 Associated Group Inc. Class A (a) 132,855
2,276 Atmos Energy Corp. 56,900
3,232 Avista Corp. 52,520
1,573 Black Hills Corp. 36,376
866 California Water Service Group 22,624
200 Cascade Natural Gas Corp. (a) 3,800
866 Cellular Communications of Puerto Rico
Inc. (a) 24,681
1,306 Centennial Cellular Corp. (a) 46,526
1,297 Central Hudson Gas & Electric Corp. 54,474
2,280 Century Communications Corp. (a) 104,880
975 CFW Communication Co. 23,644
500 Chaparral Resources Inc. (a) 19,000
978 Cilcorp Inc. 61,125
1,629 Cleco Corp. 49,481
2,386 CMP Group Inc. 62,483
701 Colonial Gas Co. 25,937
1,589 CommNet Cellular Inc. (a) 41,711
1,355 Commonwealth Energy Systems 56,910
865 Commonwealth Telephone (a) 34,978
759 Connecticut Energy Corp. 29,269
649 E 'Town Corp. 29,692
1,517 Eastern Utilities Associates 44,183
938 Echostar Communications (a) 143,924
4,219 El Paso Electric Co. (a) 37,707
1,298 Empire District Electric Co. 33,829
1,949 Energen Corp. 36,300
2,882 General Cable Corp. 46,112
2,807 General Communications Inc. (a) 19,079
2,384 Hawaiian Electric Industries Inc. 84,632
2,825 Idacorp Inc. 88,988
2,171 Indiana Energy Inc. 46,269
3,847 ITC Deltacom Inc. (a) 107,716
1,974 IXC Communications Inc. (a) 77,603
982 Jones Intercable Inc. (a) 48,118
1,301 Laclede Gas Co. 30,248
1,002 LCC International Inc. (a) 4,509
3,360 Lincoln Electric Holdings Inc. 68,880
1,192 Madison Gas & Electric Co. 24,436
4,005 MDU Resources Group Inc. 91,364
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
5,317 Minnesota Power Inc. $ 105,675
3,894 Nevada Power Co. 97,350
1,303 New Jersey Resources Corp. 48,781
1,086 North Pittsburgh Systems Inc. 18,462
1,843 Northwest Natural Gas Co. 44,462
1,732 Northwestern Corp. 41,893
5,233 NTL Inc. (a) 451,019
973 NUI Corp. 24,325
12,032 Ocean Energy Inc. (a) 115,808
2,276 Omnipoint Corp. (a) 65,862
900 Orange & Rockland Utilities 52,594
868 Otter Tail Power Co. 33,472
545 Pacific Gateway Exchange Inc. (a) 15,873
2,748 Pagemart Wireless Inc. (a) 20,782
761 Pennsylvania Enterprises Inc. 23,353
2,601 Philadelphia Suburban Corp. 59,986
2,277 Piedmont Natural Gas Inc. 70,872
1,188 Powertel Inc. (a) 35,492
1,609 Primus Telecommunications (a) 36,102
3,239 Public Service Co. of New Mexico 64,375
1,518 Public Service Co. of North Carolina
Inc. 44,402
2,720 RCN Corp. (a) 113,220
2,814 Rochester Gas & Electric Corp. 74,747
1,320 Semco Energy Inc. 20,378
2,278 Sierra Pacific Resources 82,862
1,735 Sigcorp Inc. 49,556
100 SJW Corp. (a) 7,963
4,417 Skytel Inc. (a) 92,481
545 South Jersey Industries Inc. 15,430
1,336 Southern Union Co. (a) 29,058
2,275 Southwest Gas Corp. 65,122
1,943 Southwestern Energy Co. 20,523
794 Superior Telecom Inc. 19,850
2,782 Talk.com Inc. (a) 31,298
863 TNP Enterprises Inc. 31,284
2,589 UGI Corp. 52,265
2,485 Unisource Energy Corporation
Holding Co. (a) 29,665
1,032 United Illuminating Co. 43,796
3,083 United International Holdings Inc. (a) 208,488
2,057 United Water Resources Inc. 46,668
425 US LEC Corp. (a) 9,563
2,200 US Satellite Broadcasting (a) 40,150
412 Verio Inc. (a) 28,634
3,565 Washington Gas Light Co. 92,690
1,623 Western Gas Resources Inc. 25,968
5,437 Western Wireless Corp. (a) 146,799
2,915 Wicor Inc. 81,438
3,124 Winstar Communications Inc. (a) 152,295
1,952 WPS Resources Corp. 58,560
</TABLE>
- ---------
30
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------- -----------
<C> <S> <C>
761 Yankee Energy Systems Inc. $ 30,202
-----------
5,442,866
-----------
TOTAL COMMON STOCKS
(cost $62,001,879) 66,787,849
<CAPTION>
PRINCIPAL
AMOUNT
- ---------
<C> <S> <C>
SHORT-TERM INVESTMENTS (3.5%)
2,458,000 U.S. Treasury Bills, 4.430% and 4.455%,
July, 1999 and August, 1999
(cost $2,448,986) 2,449,357
-----------
TOTAL INVESTMENTS (99.9%)
(cost $64,450,865) 69,237,206
CASH AND OTHER ASSETS, LESS LIABILITIES (0.1%)
82,005
-----------
NET ASSETS (100.0%) $69,319,211
-----------
-----------
</TABLE>
Notes:
(a) Non-income producing security.
At June 30, 1999, net unrealized appreciation of $4,786,341 consisted of gross
unrealized appreciation of $10,106,488 and gross unrealized depreciation of
$5,320,147 based on cost of $64,450,865 for federal income tax purposes.
See accompanying notes to financial statements.
31-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (95.9%)
AUSTRALIA (2.4%)
10,149 Amcor Ltd. (a) $ 56,307
MISCELLANEOUS FOOD PREPARATIONS
15,948 AMP Limited (a) 174,013
LIFE INSURANCE
54,796 Ashton Mining Limited (a) 25,705
METAL MINING SERVICES
3,900 Brambles Industries Ltd. 102,546
MISCELLANEOUS TRANSPORTATION SERVICES
21,975 Broken Hill Proprietary (a) 254,062
BITUMINOUS COAL AND LIGNITE MINING
15,573 Coca-Cola 62,645
BEVERAGES
13,000 Coles Myer Ltd. (a) 75,492
RETAIL STORES
26,112 CSR Ltd. 74,524
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
35,244 Fosters Brewing Group Ltd. 99,141
MISCELLANEOUS FOOD PREPARATIONS
7,080 Lend Lease Corporation Ltd. (a) 97,024
BUSINESS CREDIT INSTITUTIONS
65,983 MIM Holdings Limited (a) 46,643
METAL MINING SERVICES
17,971 National Australia Bank Ltd. 296,814
FOREIGN BANKING
9,900 Newcrest Mining Limited (a) 22,185
GOLD AND SILVER ORES
25,241 News Corporation Ltd. (a) 214,947
MISCELLANEOUS PUBLISHING
27,165 Normandy Mining Limited (a) 18,054
GOLD AND SILVER ORES
8,889 North Limited 17,970
BITUMINOUS COAL AND LIGNITE MINING
10,669 Orica Limited (a) 58,157
CHEMICALS AND ALLIED PRODUCTS
24,409 Pacific Dunlop 35,154
MISCELLANEOUS MANUFACTURING INDUSTRIES
22,998 Pioneer International Ltd. (a) 58,495
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
5,431 Rio Tinto Ltd. 88,882
MISCELLANEOUS METAL ORES
11,500 Santos Ltd. 37,607
CRUDE PETROLEUM AND NATURAL GAS
67,038 Telstra Corporation 383,410
TELEPHONE COMMUNICATIONS
12,830 Western Mining Corp. Holding Ltd. (a) 55,010
METAL MINING SERVICES
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
30,711 Westfield Trust (a) $ 62,045
TRUSTS
22,703 Westpac Banking Corp. 146,988
FOREIGN BANKING
------------
2,563,820
------------
AUSTRIA (.2%)
1,455 Bank Austria AG 76,424
FOREIGN BANKING
360 OEMV AG (a) 32,067
MISCELLANEOUS PRODUCTS OF PETROLEUM AND
COAL
820 Oest Elektrizatswirts Class A (a) 119,246
NONCLASSIFIABLE ESTABLISHMENTS
360 VA Technologie AG (a) 32,572
MACHINERY, EQUIPMENT, AND SUPPLIES
------------
260,309
------------
BELGIUM (1.5%)
300 Barco Industries NV (a) 48,230
ELECTRIC SERVICES
190 Bekaert SA (a) 81,207
ELECTRIC SERVICES
950 Cimenteries CBR Cementbed (a) 87,274
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,020 Delhaize LE PS (a) 86,718
RETAIL STORES
628 Electrabel 202,441
ELECTRIC SERVICES
9,445 Fortis B (a) 296,199
INSURANCE CARRIERS
850 GBL Group (a) 143,480
HOLDING OFFICES
700 NV Union Miniere SA (a) 28,837
METALS AND MINERALS, EXCEPT PETROLEUM
400 Petrofina SA (a) 229,461
CRUDE PETROLEUM AND NATURAL GAS
1,200 Reunies Electrobel & Tractebel 168,079
ELECTRIC, GAS, AND OTHER UTILITY
SERVICES
1,475 Solvay Et Cie Class A NPV (a) 97,754
CHEMICALS AND ALLIED PRODUCTS
2,471 UCB BB 105,613
CHEMICALS AND ALLIED PRODUCTS
------------
1,575,293
------------
DENMARK (.8%)
500 Aarhus Oliefabrik Class A 13,163
FATS AND OILS
</TABLE>
- ---------
32
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
600 Aarhus Oliefbarik Class B $ 16,212
FATS AND OILS
180 D/S 1912 Class B (a) 159,124
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
100 D/S Svendborg Class B (a) 123,458
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
1,500 Danisco 67,549
MISCELLANEOUS MANUFACTURING INDUSTRIES
600 Den Danske Bank (a) 64,847
FOREIGN BANKING
800 Novo Nordisk AS-B 86,130
DRUGS
5,200 Tele Danmark 255,065
TELEPHONE COMMUNICATIONS
1,600 Unidanmark (a) 106,415
FOREIGN BANKING
------------
891,963
------------
FINLAND (2.1%)
4,600 Amer-Yhthymae OY Class A (a) 66,089
DOLLS, TOYS, GAMES AND SPORTING AND
ATHLETIC GOODS
3,400 Kesko OY Osake (a) 45,697
MISCELLANEOUS BUSINESS SERVICES
32,100 Merita Ltd. Class A (a) 182,158
FOREIGN BANKING
14,600 Nokio OYJ 1,278,103
COMMUNICATIONS EQUIPMENT
6,900 Outokumpo OY 77,459
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
6,100 Sampo Insurance Co. 176,535
INSURANCE AGENTS, BROKERS, AND SERVICE
3,000 Tieto Corporation 124,824
COMPUTER PROGRAMMING & DATA PROCESSING
8,700 UPM-Kymmene (a) 249,091
PAPER AND PAPER PRODUCTS
------------
2,199,956
------------
FRANCE (9.2%)
531 Accor French 133,164
SERVICES
889 Air Liquide French 139,626
MISCELLANEOUS CHEMICAL PRODUCTS
2,613 Alcatel 367,338
COMMUNICATIONS EQUIPMENT
4,590 AXA Company 559,231
INSURANCE AGENTS, BROKERS, AND SERVICE
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
3,005 Banque National De Paris (a) $ 250,063
COMMERCIAL BANKS
774 BIC 40,774
MISCELLANEOUS NON-DURABLE GOODS
361 Bouygues 95,291
MISCELLANEOUS BUSINESS SERVICES
400 Canal Plus 112,094
RADIO AND TELEVISION BROADCASTING
STATIONS
4,964 Carrefour Supermarche 728,520
GROCERY STORES
1,200 Compagnie De Saint Goban 190,943
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
3,477 ELF-Aquitaine 509,570
OIL AND GAS FIELD SERVICES
698 Eridania Beghin Say 99,923
MISCELLANEOUS FOOD PREPARATIONS
196 Essilor International (a) 61,184
MISCELLANEOUS NON-DURABLE GOODS
13,182 France Telecom SA (a) 994,450
TELEPHONE COMMUNICATIONS
1,090 Groupe Danone (a) 280,647
MISCELLANEOUS FOOD PREPARATIONS
500 Imetal (a) 74,153
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
910 L'Oreal (a) 614,339
MISCELLANEOUS NON-DURABLE GOODS
1,430 Lafarge Coppee French (a) 135,788
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,843 Lagardere Group 68,521
MISCELLANEOUS BUSINESS SERVICES
368 LeGrand (a) 74,815
MISCELLANEOUS DURABLE GOODS
1,176 LVMH Company (a) 343,848
MISCELLANEOUS FOOD PREPARATIONS
1,176 LVMH Company -- Rights (a) 34,336
MISCELLANEOUS FOOD PREPARATIONS
2,049 Michelin Class B 83,714
TIRES AND INNER TUBES
2,140 Paribas 239,573
FOREIGN BANKING
932 Pernod-Ricard (a) 62,391
MISCELLANEOUS FOOD PREPARATIONS
779 Peugeot SA (a) 122,750
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
1,567 Pinault-Printemps-Redoute SA 268,545
DEPARTMENT STORES
</TABLE>
33-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
269 Promodes $ 176,338
GROCERY STORES
5,182 Rhone Polenc Class A 236,480
DRUGS
100 Sagem SA 66,737
MISCELLANEOUS DURABLE GOODS
9,230 Sanofi-Synthelabo 391,170
DRUGS
2,113 Schneider SA 118,493
MISCELLANEOUS DURABLE GOODS
1,000 Seita (a) 57,674
MISCELLANEOUS FOOD PREPARATIONS
700 Sidel 84,997
MISCELLANEOUS DURABLE GOODS
1,354 Societe Generale Class A 238,317
FOREIGN BANKING
433 Sodexho Alliance (a) 74,473
SERVICES
1,977 Suez Lyonnaise Des Eaux-Dumex 356,115
MISCELLANEOUS BUSINESS SERVICES
2,368 Thomson CSF (a) 82,188
MISCELLANEOUS DURABLE GOODS
2,933 Total Fina SA (a) 377,888
ELECTRIC, GAS, AND OTHER UTILITY
SERVICES
2,579 Usinor Sacilor (a) 38,381
STEEL WORKS
1,244 Valeo 102,495
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
7,021 Vivendi 567,989
MISCELLANEOUS BUSINESS SERVICES
------------
9,655,326
------------
GERMANY (9.5%)
950 Adidas Salomon AG 94,171
MISCELLANEOUS TEXTILE GOODS
100 AGIV AG 2,264
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
2,900 Allianz AG Holding 803,423
INSURANCE AGENTS, BROKERS, AND SERVICE
400 AMB Aachener & Muenchene 40,578
INSURANCE CARRIERS
350 AXA Colonia Konzern AG 33,163
INSURANCE AGENTS, BROKERS, AND SERVICE
9,600 BASF AG 421,188
PLASTICS MATERIALS AND SYNTHETIC RESINS,
SYNTHETIC
10,650 Bayer AG 442,576
CHEMICALS AND ALLIED PRODUCTS
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
7,400 Bayerische Hypo Vereinsbank $ 470,231
FOREIGN BANKING
1,800 Beiersdorf (a) 119,571
CHEMICALS AND ALLIED PRODUCTS
12,408 Daimler Chrysler AG 1,073,433
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
6,805 Deutsche Bank AG 414,200
FOREIGN BANKING
33,171 Deutsche Telekom AG 1,392,149
TELEPHONE COMMUNICATIONS
7,150 Dresdner Bank AG (a) 279,087
FOREIGN BANKING
850 Heidelberger Zement AG (a) 68,720
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
950 Hochtief AG 43,050
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
150 Karstadt AG (a) 71,526
MISCELLANEOUS NON-DURABLE GOODS
100 Linde AG 59,940
MACHINERY, EQUIPMENT, AND SUPPLIES
4,470 Lufthansa AG (a) 81,254
AIR TRANSPORTATION & COURIER SERVICES
4,000 MAN AG (a) 135,947
MACHINERY, EQUIPMENT, AND SUPPLIES
4,900 Mannesmann AG 730,228
GENERAL INDUSTRIAL MACHINERY AND
EQUIPMENT
2,100 Merck KGAA 67,911
DRUGS
3,800 Metro AG (a) 241,470
MISCELLANEOUS NON-DURABLE GOODS
800 Muenchener Rueckver AG 145,834
INSURANCE CARRIERS
2,120 Muenchener Rueckversicherungs
Namensaktie 398,904
INSURANCE CARRIERS
2,500 Preussag AG 134,788
STEEL WORKS
5,150 RWE AG 238,148
MISCELLANEOUS MANUFACTURING INDUSTRIES
750 SAP AG 256,831
COMPUTER PROGRAMMING & DATA PROCESSING
720 Schering AG (a) 76,822
CHEMICALS AND ALLIED PRODUCTS
400 SGL Carbon AG (a) 30,897
CHEMICALS AND ALLIED PRODUCTS
7,750 Siemens AG 597,032
ELECTRIAL GOODS
</TABLE>
- ---------
34
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
13,000 Thyssen Krupp $ 285,580
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,350 VEBA AG 374,080
MISCELLANEOUS MANUFACTURING INDUSTRIES
250 VIAG AG (a) 115,864
UTILITIES REGULATION AND ADMINISTRATION
3,700 Volkswagen AG (a) 236,640
MOTOR VEHICLE DEALERS
------------
9,977,500
------------
HONG KONG (2.4%)
20,200 Bank of East Asia Hong Kong (a) 51,159
FOREIGN BANKING
44,000 Cathay Pacific Airways Ltd. (a) 67,487
AIR TRANSPORTATION & COURIER SERVICES
30,000 Cheung Kong 266,796
LAND SUBDIVIDERS AND DEVELOPERS
172,000 Chinese Estates HL (a) 31,252
REAL ESTATE AGENTS AND MANAGERS
27,500 CLP Holdings Limited (a) 133,625
UTILITIES REGULATION AND ADMINISTRATION
23,700 Hang Seng Bank (a) 264,990
FOREIGN BANKING
56,300 Hong Kong & China Gas 81,635
GAS PRODUCTION AND DISTRIBUTION
150,000 Hong Kong Telecom 389,565
COMMUNICATIONS EQUIPMENT
47,000 Hutchison Whampoa 425,557
MISCELLANEOUS BUSINESS SERVICES
18,344 Hysan Development Company (a) 27,663
REAL ESTATE AGENTS AND MANAGERS
14,500 Johnson Electric Holdings 59,804
ELECTRICAL INDUSTRIAL APPARATUS
46,000 New World Development 137,844
LAND SUBDIVIDERS AND DEVELOPERS
74,000 Sino Land Company (a) 42,439
REAL ESTATE AGENTS AND MANAGERS
32,000 Sun Hung Kai Properties 291,802
LAND SUBDIVIDERS AND DEVELOPERS
22,000 Swire Pacific Ltd. Class A (a) 108,885
MISCELLANEOUS BUSINESS SERVICES
39,000 Wharf Holdings Ltd. (a) 121,645
REAL ESTATE AGENTS AND MANAGERS
------------
2,502,148
------------
IRELAND (.3%)
10,593 Allied Irish Bank PLC 140,256
FOREIGN BANKING
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
4,700 CRH PLC $ 83,257
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
5,520 Irish Permanent PLC (a) 56,988
FOREIGN BANKING
14,550 Jefferson Smurfit Group 34,091
PAPER AND PAPER PRODUCTS
600 Kerry Group PLC Class A (a) 7,106
MISCELLANEOUS FOOD PREPARATIONS
------------
321,698
------------
ITALY (4.2%)
20,537 Alitalia (a) 53,300
AIR TRANSPORTATION & COURIER SERVICES
12,544 Assicurazione Generali (a) 434,080
ACCIDENT AND HEALTH INSURANCE AND
MEDICAL SERVICE
39,500 Banca Commerciale Italiana 288,022
FOREIGN BANKING
31,363 Banca Intesa SPA 150,520
FOREIGN BANKING
29,000 Benetton Group 57,046
APPAREL, PIECE GOODS, AND NOTIONS
11,000 Edison SPA (a) 95,162
COMMUNICATIONS SERVICES
104,200 ENI SPA 621,355
RETAIL STORES
63,000 FIAT SPA (a) 199,193
RETAIL STORES
53,849 Istituto Nazionale Delle Assic (a) 124,784
UTILITIES REGULATION AND ADMINISTRATION
14,000 Italgas (a) 58,684
CRUDE PETROLEUM AND NATURAL GAS
15,400 Mediaset SPA 136,717
RADIO AND TELEVISION BROADCASTING
STATIONS
9,170 Mediobanca Banca Di Credito (a) 95,859
COMMERCIAL BANKS
1,320 Mediobanca SPA (a) 2,882
COMMERCIAL BANKS
33,540 Montedison SPA 54,509
RETAIL STORES
30,400 Parmalat Finanziaria SPA (a) 39,763
OTHER
32,000 Pirelli SPA (a) 87,005
RETAIL STORES
6,050 RAS SPA 58,695
UTILITIES REGULATION AND ADMINISTRATION
21,060 San Paolo -- IMI SPA 286,304
COMMERCIAL BANKS
</TABLE>
35-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
10,000 Sirti SPA (a) $ 48,199
RETAIL STORES
88,400 Telecom Italia Mobile 527,138
COMMUNICATIONS SERVICES
20,400 Telecom Italia Mobile -- DRNC (a) 75,005
COMMUNICATIONS SERVICES
62,400 Telecom Italia SPA 592,698
COMMUNICATIONS SERVICES
60,847 Unicredito Italiano SPA (a) 266,960
FOREIGN BANKING
79,900 Unione Immobilistr (a) 35,388
REAL ESTATE OPERATORS AND LESSORS
------------
4,389,268
------------
JAPAN (22.8%)
2,000 ACOM Company Ltd. (a) 172,578
MISCELLANEOUS BUSINESS SERVICES
1,190 Advantest Corp. (a) 130,688
ELECTRICAL INDUSTRIAL APPARATUS
10,000 Ajinomoto Company Inc. (a) 113,951
MISCELLANEOUS FOOD PREPARATIONS
3,000 Alps Electronics Co. (a) 70,228
ELECTRICAL INDUSTRIAL APPARATUS
5,000 Amada Company Ltd. (a) 35,300
MACHINERY, EQUIPMENT, AND SUPPLIES
3,000 Amano Corp. 24,722
MACHINERY, EQUIPMENT, AND SUPPLIES
9,000 AOKI Corp. (a) 5,722
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,200 Aoyama Trading (a) 37,851
RETAIL STORES
1,600 Arabian Oil Company (a) 28,471
GAS PRODUCTION AND DISTRIBUTION
35,000 Asahi Bank Ltd. (a) 167,622
FOREIGN BANKING
8,000 Asahi Breweries Ltd. (a) 99,484
MISCELLANEOUS FOOD PREPARATIONS
18,000 Asahi Chemical Industry Co. (a) 99,731
CHEMICALS AND ALLIED PRODUCTS
14,000 Asahi Glass Company Ltd. (a) 90,748
GLASS PRODUCTS
10,000 Ashikaga Bank (a) 19,487
FOREIGN BANKING
11,000 Bridgestone Corp. 332,439
MORTGAGE BANKERS AND BROKERS
10,000 Canon Inc. 287,354
ELECTRICAL INDUSTRIAL APPARATUS
10,000 Chiba Bank (a) 36,910
FOREIGN BANKING
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
8,000 Chiyoda Corp. (a) $ 16,514
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,000 Citizen Watch Company Ltd. (a) 52,021
MISCELLANEOUS ELECTRICAL MACHINERY,
EQUIPMENT, AND SUPPLIES
2,400 Credit Saison (a) 50,138
RETAIL STORES
1,300 CSK Corp. (a) 29,520
SERVICES
14,000 Dai Nippon Ink & Chemical Inc. (a) 47,628
CHEMICALS AND ALLIED PRODUCTS
10,000 Dai Nippon Printing Company Ltd. 159,779
MISCELLANEOUS MANUFACTURING INDUSTRIES
11,000 Dai Nippon Screen (a) 56,769
ELECTRICAL INDUSTRIAL APPARATUS
10,000 Daido Steel Co. (a) 15,854
STEEL WORKS
13,000 Daiei Inc. (a) 44,440
RETAIL STORES
5,000 Daiichi Pharmaceutical (a) 77,536
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
4,000 Daikin Industries Ltd. (a) 46,406
MACHINERY, EQUIPMENT, AND SUPPLIES
8,000 Daimaru Inc. (a) 39,106
RETAIL STORES
12,000 Daiwa House Industry (a) 126,138
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
17,000 Daiwa Securities (a) 112,299
MISCELLANEOUS INVESTING
12,000 Denso Corporation 243,756
MISCELLANEOUS TRANSPORTATION EQUIPMENT
45 East Japan Rail (a) 241,526
MISCELLANEOUS TRANSPORTATION SERVICES
4,000 Ebaba Corporation (a) 47,529
MACHINERY, EQUIPMENT, AND SUPPLIES
4,000 Eisai Company Ltd. 78,775
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
2,700 Fanuc Co. 144,915
ELECTRICAL INDUSTRIAL APPARATUS
44,000 Fuji Bank (a) 306,645
FOREIGN BANKING
6,000 Fuji Photo Film 226,910
MOTION PICTURE PRODUCTION AND ALLIED
SERVICES
9,000 Fujikura Ltd. (a) 42,954
NONFERROUS FOUNDRIES (CASTING)
23,000 Fujitsu Ltd. 462,449
COMMUNICATIONS EQUIPMENT
</TABLE>
- ---------
36
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
15,000 Furkukawa Electric (a) $ 68,742
OIL AND GAS FIELD SERVICES
10,000 Gakken 9470 (a) 18,166
MISCELLANEOUS MANUFACTURING INDUSTRIES
9,000 Gunma Bank (a) 56,479
FOREIGN BANKING
27,000 Haseko Corporation (a) 22,963
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
500 Hirose Electronics Company Ltd. 51,856
ELECTRICAL INDUSTRIAL APPARATUS
41,000 Hitachi Ltd. 384,252
ELECTRICAL INDUSTRIAL APPARATUS
13,000 Honda Motor Company Ltd. 550,679
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
2,000 Hoya Corp. (a) 112,795
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
34,000 Industrial Bank of Japan 269,518
FOREIGN BANKING
4,000 Isetan (a) 34,450
RETAIL STORES
5,000 ITO Yokado Co. 334,420
RETAIL STORES
22,000 Itochu Corp. (a) 54,679
MISCELLANEOUS DURABLE GOODS
24,000 Japan Airlines (a) 79,270
AIR TRANSPORTATION & COURIER SERVICES
12,000 Joyo Bank (a) 46,670
FOREIGN BANKING
5,000 Jusco Co. 90,830
RETAIL STORES
16,000 Kajima Corp. (a) 58,131
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
7,000 Kaneka Corporation (a) 65,893
CHEMICALS AND ALLIED PRODUCTS
11,500 Kansai Electric Power (a) 218,406
ELECTRIC SERVICES
8,000 KAO Corp. 224,598
CHEMICALS AND ALLIED PRODUCTS
22,000 Kawasaki Heavy Industries (a) 59,585
MISCELLANEOUS TRANSPORTATION EQUIPMENT
44,000 Kawasaki Steel (a) 82,108
STEEL WORKS
5,000 Kinden Corporation (a) 53,879
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
22,000 Kinki Nippon Railway (a) 108,088
MISCELLANEOUS TRANSPORTATION SERVICES
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
14,000 Kirin Brewery Company Ltd. (a) $ 167,623
MISCELLANEOUS FOOD PREPARATIONS
3,000 Kokuyo Company Ltd. (a) 48,305
MISCELLANEOUS MANUFACTURING INDUSTRIES
12,000 Komatsu Ltd. (a) 76,595
MACHINERY, EQUIPMENT, AND SUPPLIES
20,000 Kurabo Industries (a) 26,754
MISCELLANEOUS TEXTILE GOODS
2,000 Kurita Water Industries (a) 35,837
MACHINERY, EQUIPMENT, AND SUPPLIES
2,300 Kyocera Corp. 134,842
ELECTRICAL INDUSTRIAL APPARATUS
12,000 Kyowa Hakko Kogyo (a) 68,668
CHEMICALS AND ALLIED PRODUCTS
21,000 Marubeni Corp. (a) 43,871
SERVICES
6,000 Marui Co. (a) 99,088
RETAIL STORES
26,000 Matsushita Electric Industries 504,520
HOUSEHOLD AUDIO AND VIDEO EQUIPMENT
6,000 Minebea Company Ltd. (a) 66,884
MISCELLANEOUS ELECTRICAL MACHINERY,
EQUIPMENT, AND SUPPLIES
26,000 Mitsubishi Chemical Corp. (a) 89,955
CHEMICALS AND ALLIED PRODUCTS
18,000 Mitsubishi Corp. (a) 121,878
MISCELLANEOUS BUSINESS SERVICES
27,000 Mitsubishi Electric (a) 103,669
ELECTRICAL INDUSTRIAL APPARATUS
16,000 Mitsubishi Estate Company Ltd. (a) 156,030
REAL ESTATE OPERATORS AND LESSORS
40,000 Mitsubishi Heavy 162,172
ENGINES AND TURBINES
31,000 Mitsubishi Materials Corp. (a) 69,369
NONFERROUS FOUNDRIES (CASTING)
15,000 Mitsubishi Paper (a) 28,116
PULP MILLS
17,000 Mitsubishi Trust 165,080
FOREIGN BANKING
4,000 Mitsubishi Warehouse Transport 44,953
PUBLIC WAREHOUSING AND STORAGE
18,000 Mitsui & Co. 125,446
MISCELLANEOUS DURABLE GOODS
16,000 Mitsui Engineering (a) 18,099
MISCELLANEOUS TRANSPORTATION EQUIPMENT
14,000 Mitsui Fudosan 113,291
REAL ESTATE OPERATORS AND LESSORS
16,000 Mitsui Marine & Fire Insurance (a) 78,610
INSURANCE CARRIERS
7,000 Mitsui Mining & Smelting (a) 36,126
NONFERROUS FOUNDRIES (CASTING)
</TABLE>
37-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
20,000 Mitsui OSK Lines Ltd. $ 42,938
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
23,000 Mitsui Trust & Banking 36,655
FOREIGN BANKING
14,000 Mitsukoshi (a) 60,806
RETAIL STORES
3,000 Murata Manufacturing Company Ltd. (a) 197,184
ELECTRICAL INDUSTRIAL APPARATUS
7,000 Mycal Corp. (a) 43,928
RETAIL STORES
26,000 Nagoya Railroad Company Ltd. (a) 85,446
MISCELLANEOUS TRANSPORTATION SERVICES
20,000 NEC Corp. (a) 248,544
ELECTRICAL INDUSTRIAL APPARATUS
6,000 NGK Insulators Ltd. (a) 62,623
GLASS PRODUCTS
5,000 Nikon Corp. (a) 81,747
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
3,000 Nippon Comsys Corp. (a) 48,677
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
13,000 Nippon Express Co. (a) 77,825
MISCELLANEOUS TRANSPORTATION SERVICES
11,000 Nippon Fire & Marine Insurance (a) 37,241
INSURANCE CARRIERS
56,000 Nippon Light Metal Co. (a) 83,698
NONFERROUS FOUNDRIES (CASTING)
19,000 Nippon Mitsubishi Oil Corp. 80,013
CRUDE PETROLEUM AND NATURAL GAS
16,000 Nippon Paper Industries Co. (a) 83,366
PULP MILLS
64,000 Nippon Steel Corp. (a) 148,499
STEEL WORKS
1,630 Nippon Telegraph and Telephone Corp. (a) 1,911,234
COMMUNICATIONS SERVICES
17,000 Nippon Yusen Kabushiki Kaish (a) 65,414
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
35,000 Nissan Motors 167,045
MISCELLANEOUS TRANSPORTATION EQUIPMENT
10,000 Nisshinbo Industries Inc. (a) 45,498
MISCELLANEOUS TEXTILE GOODS
3,000 Nitto Denko Corp. (a) 62,921
ELECTRICAL INDUSTRIAL APPARATUS
67,000 NKK Corporation (a) 54,773
STEEL WORKS
24,000 Nomura Securities Company Ltd. 280,814
MISCELLANEOUS INVESTING
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
9,000 NSK Ltd. (a) $ 49,345
MACHINERY, EQUIPMENT, AND SUPPLIES
14,000 Odakyu Railway (a) 46,819
MISCELLANEOUS TRANSPORTATION SERVICES
11,000 Ohbayashi-Gumi Corp. (a) 55,316
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
14,000 OJI Paper Company Ltd. (a) 80,921
PULP MILLS
3,000 Olympus Optical (a) 44,317
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
3,000 Omron Corp. 52,021
ELECTRICAL INDUSTRIAL APPARATUS
5,000 Onward Kashiyama Company Ltd. (a) 54,911
MISCELLANEOUS TEXTILE GOODS
800 Orix Corp. (a) 71,343
MISCELLANEOUS BUSINESS SERVICES
32,000 Osaka Gas Company Ltd. (a) 108,598
ELECTRIC SERVICES
3,000 Pioneer Electric Corp. (a) 58,338
ELECTRICAL INDUSTRIAL APPARATUS
28,000 Renown Inc. (a) 39,304
MISCELLANEOUS TEXTILE GOODS
1,000 Rohm Company 156,476
ELECTRICAL INDUSTRIAL APPARATUS
52,000 Sakura Bank Ltd. (a) 197,085
FOREIGN BANKING
6,000 Sankyo Company Ltd. 151,109
DRUGS
26,000 Sanyo Electric Company Ltd. (a) 105,628
ELECTRICAL INDUSTRIAL APPARATUS
2,000 Secom Company Ltd. 208,084
ELECTRONIC COMPONENTS AND ACCESSORIES
1,700 Sega Enterprises (a) 22,474
MISCELLANEOUS MANUFACTURING INDUSTRIES
4,000 Seiyu (a) 22,130
RETAIL STORES
8,000 Sekisui Chemical (a) 46,373
CHEMICALS AND ALLIED PRODUCTS
11,000 Sekisui House Ltd. 118,624
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,000 Seventy Seven Bank (a) 52,516
FOREIGN BANKING
15,000 Sharp Corp. (a) 177,119
ELECTRICAL INDUSTRIAL APPARATUS
2,000 Shimano Industrial (a) 47,314
MISCELLANEOUS TRANSPORTATION EQUIPMENT
12,000 Shimizu Corp. (a) 46,769
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
</TABLE>
- ---------
38
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
5,000 Shin-Etsu Chemical Co. (a) $ 167,211
CHEMICALS AND ALLIED PRODUCTS
10,000 Shionogi & Company Ltd. (a) 79,022
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
6,000 Shiseido Co. (a) 89,872
CHEMICALS AND ALLIED PRODUCTS
9,000 Shizuoka Bank (a) 89,625
FOREIGN BANKING
35,000 Showa Denko KK (a) 44,797
CHEMICALS AND ALLIED PRODUCTS
800 SMC Corporation (a) 89,509
MACHINERY, EQUIPMENT, AND SUPPLIES
5,200 Sony Corp. 560,340
HOUSEHOLD AUDIO AND VIDEO EQUIPMENT
40,000 Sumitomo Bank (a) 495,768
FOREIGN BANKING
20,000 Sumitomo Chemical Co. (a) 91,656
CHEMICALS AND ALLIED PRODUCTS
13,000 Sumitomo Corp. (a) 95,000
MISCELLANEOUS NON-DURABLE GOODS
10,000 Sumitomo Electric Industries (a) 113,620
ELECTRICAL INDUSTRIAL APPARATUS
9,000 Sumitomo Heavy Industries (a) 20,066
MACHINERY, EQUIPMENT, AND SUPPLIES
12,000 Sumitomo Marine & Fire (a) 72,334
INSURANCE CARRIERS
13,000 Sumitomo Metal (a) 53,672
NONFERROUS FOUNDRIES (CASTING)
62,000 Sumitomo Metal Industries (a) 77,308
STEEL WORKS
14,000 Taiheiyo Cement Corporation 40,114
CEMENT, HYDRAULIC
15,000 Taisei Corp. (a) 32,946
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
5,000 Taisho Pharmaceutical Company Ltd. (a) 165,146
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
2,000 Taiyo Yuden Company Ltd. (a) 32,798
ELECTRICAL INDUSTRIAL APPARATUS
6,000 Takashimaya Co. (a) 57,322
RETAIL STORES
11,000 Takeda Chemical Industries Ltd. 509,557
DRUGS
17,000 Teijin Limited (a) 68,784
MISCELLANEOUS TEXTILE GOODS
60,000 The Bank of Tokyo Mitsubishi 853,638
FOREIGN BANKING
16,000 Tobu Railway Company Ltd. (a) 45,317
MISCELLANEOUS TRANSPORTATION SERVICES
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
8,000 TOEI (a) $ 32,699
MOTION PICTURE PRODUCTION AND ALLIED
SERVICES
600 TOHO Co. 87,693
SERVICES
6,900 Tohoku Electric Power (a) 104,379
ELECTRIC SERVICES
29,000 Tokai Bank (a) 165,228
FOREIGN BANKING
20,000 Tokio Marine & Fire Insurance (a) 217,166
INSURANCE CARRIERS
1,000 Tokyo Broadcasting 14,450
SERVICES
6,000 Tokyo Dome Corp. (a) 34,780
SERVICES
16,000 Tokyo Electric Power Company Inc. (a) 337,558
ELECTRIC SERVICES
2,000 Tokyo Electron Ltd. (a) 135,585
SERVICES
41,000 Tokyo Gas (a) 100,889
GAS PRODUCTION AND DISTRIBUTION
4,000 Tokyo Steel Manufacturing (a) 21,006
STEEL WORKS
7,000 Tokyo Tatemono Company Ltd. (a) 16,184
REAL ESTATE OPERATORS AND LESSORS
44,000 Tokyu Corp. (a) 110,814
MISCELLANEOUS TRANSPORTATION SERVICES
10,000 Toppan Printing Co. (a) 111,556
MISCELLANEOUS MANUFACTURING INDUSTRIES
18,000 Toray Industries Inc. (a) 90,070
MISCELLANEOUS TEXTILE GOODS
3,000 Tostem Corporation (a) 57,595
METALS AND MINERALS, EXCEPT PETROLEUM
6,000 Toto Ltd. (a) 46,324
GLASS PRODUCTS
3,000 Toyo Seikan (a) 67,379
METALS AND MINERALS, EXCEPT PETROLEUM
3,000 Toyoda Automatic Loom Works (a) 50,906
GENERAL INDUSTRIAL MACHINERY AND
EQUIPMENT
48,000 Toyota Motor Co. 1,518,019
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
17,000 UBE Industries Ltd. 36,638
CHEMICALS AND ALLIED PRODUCTS
1,300 UNI Charm (a) 56,356
CHEMICALS AND ALLIED PRODUCTS
27,000 Unitika Ltd. (a) 24,524
MISCELLANEOUS TEXTILE GOODS
3,000 UNY Company Ltd. (a) 45,085
RETAIL STORES
</TABLE>
39-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
9,000 Wacoal Corp. $ 91,557
MISCELLANEOUS TEXTILE GOODS
4,000 Yamaguchi Bank (a) 36,167
FOREIGN BANKING
3,000 Yamaha Corp. 36,043
MISCELLANEOUS MANUFACTURING INDUSTRIES
5,000 Yamanouchi Pharmaceutical 191,157
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
6,000 Yamato Transport Company Ltd. (a) 104,537
MISCELLANEOUS TRANSPORTATION SERVICES
5,000 Yamazaki Baking Co. 62,013
MISCELLANEOUS FOOD PREPARATIONS
4,000 Yokogawa Electric (a) 23,616
ELECTRICAL INDUSTRIAL APPARATUS
16,000 Yokohama Bank (a) 41,088
FOREIGN BANKING
------------
24,089,437
------------
NETHERLANDS (5.8%)
18,192 ABN Amro Holdings 393,455
MORTGAGE BANKERS AND BROKERS
16,102 Aegon NV 1,174,187
LIFE INSURANCE
3,443 AKZO Dutch 144,674
MISCELLANEOUS CHEMICAL PRODUCTS
1,048 Buhrmann NV 17,053
PAPER AND PAPER PRODUCTS
7,460 Elsevier 86,435
MISCELLANEOUS PUBLISHING
1,192 Getronics NV 45,791
COMPUTER PROGRAMMING & DATA PROCESSING
4,637 Heineken NV 237,110
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
700 IHC Caland NV 27,395
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
11,900 ING Groep NV 643,428
COMMERCIAL BANKS
1,266 KLM Royal Dutch (a) 35,791
AIR TRANSPORTATION & COURIER SERVICES
7,944 Koninklijke Ahold NV 273,262
GROCERY STORES
6,213 Koninklijke NV 291,144
TELEPHONE COMMUNICATIONS
4,133 Koninklijke Philips Electronics 407,141
ELECTRONIC COMPONENTS AND ACCESSORIES
1,500 OCE NV 38,158
COMPUTER AND OFFICE EQUIPMENT
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
27,014 Royal Dutch Petroleum Co. $ 1,580,270
OIL AND GAS FIELD SERVICES
6,155 TNT Post Group (a) 146,748
MISCELLANEOUS TRANSPORTATION SERVICES
7,326 Unilever NV 493,068
MISCELLANEOUS NON-DURABLE GOODS
3,130 Wolters Kluwer NV 124,430
MISCELLANEOUS PUBLISHING
------------
6,159,540
------------
NEW ZEALAND (.2%)
135,700 Brierley Investments Ltd. (a) 38,050
MISCELLANEOUS INVESTING
12,400 Fletcher Challenge Energy (a) 33,588
OIL AND GAS FIELD SERVICES
25,400 Telecom Corp. of New Zealand 108,847
TELEPHONE COMMUNICATIONS
------------
180,485
------------
NORWAY (.3%)
2,100 Aker AS Class A 28,552
MISCELLANEOUS BUSINESS SERVICES
1,400 Aker AS Class B (a) 17,434
MISCELLANEOUS BUSINESS SERVICES
11,300 Christiania BK OG Kreditkass (a) 40,635
FOREIGN BANKING
1,600 DY Bergesen (a) 23,584
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
3,100 Norsk Hydro ASA (a) 116,992
MISCELLANEOUS BUSINESS SERVICES
3,300 Orkla AS Class A 51,367
GROCERIES AND RELATED PRODUCTS
2,600 Petroleum Geo-Services (a) 39,150
MISCELLANEOUS BUSINESS SERVICES
4,300 Storebrand ASA (a) 28,959
INSURANCE CARRIERS
------------
346,673
------------
PORTUGAL (.4%)
2,281 Banco Espirito Santo 52,998
MISCELLANEOUS INVESTING
7,167 EDP PL (a) 128,877
ELECTRIC, GAS, AND OTHER UTILITY
SERVICES
2,210 Jeronimo, Martins & Filho 72,903
MISCELLANEOUS FOOD STORES
4,104 Portgual Telecom -- Rights (a) 42
COMMUNICATIONS SERVICES
4,104 Portugal Telecom 166,743
COMMUNICATIONS SERVICES
</TABLE>
- ---------
40
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
1,600 Sonae Industria E Investimento $ 54,346
SERVICES
------------
475,909
------------
SINGAPORE (.9%)
10,000 City Developments 64,023
REAL ESTATE AGENTS AND MANAGERS
1,000 Creative Technology Limited (a) 13,040
COMPUTER PROGRAMMING & DATA PROCESSING
17,000 DBS Land Ltd. (a) 33,951
REAL ESTATE AGENTS AND MANAGERS
15,000 Development Bank of Singapore 183,260
FOREIGN BANKING
32,000 First Capital Corp. -- Singapore (a) 49,808
REAL ESTATE AGENTS AND MANAGERS
14,000 Natsteel Ltd. (a) 24,506
MISCELLANEOUS MANUFACTURING INDUSTRIES
12,000 Overseas Chinese Banking Corp. 100,088
FOREIGN BANKING
16,000 Singapore Airlines Ltd. 152,246
AIR TRANSPORTATION & COURIER SERVICES
8,000 Singapore Press Holdings 136,270
NEWSPAPERS: PUBLISHING, OR PUBLISHING
AND PRINTING
65,000 Singapore Telecom Ltd. 111,482
TELEPHONE COMMUNICATIONS
11,000 United Overseas Bank 76,887
FOREIGN BANKING
------------
945,561
------------
SPAIN (2.9%)
1,000 Acerinox SA (a) 29,198
METALS AND MINERALS, EXCEPT PETROLEUM
1,119 Actividades De Construccion 31,992
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
133 Actividades De Construccion -- Rights
(a) 3,511
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
199 ALBA Corp. Finance (a) 32,177
HOLDING OFFICES
7,404 Argentaria Caja Postal Y Banco 168,444
FOREIGN BANKING
4,800 Autopistas Concesionaria (a) 56,109
AUTOMOBILE PARKING
28,101 Banco Bilbao Vizcaya SA 405,467
FOREIGN BANKING
48,530 Banco Santader SA 504,809
FOREIGN BANKING
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
1,491 El Aguila Accion (a) $ 14,250
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
12,692 Endesa SA (a) 270,318
ELECTRIC SERVICES
1,027 Fomento De Construc Y Contra (a) 58,703
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
2,009 Gas Natural SDG SA 145,869
GAS PRODUCTION AND DISTRIBUTION
1,104 General De Aguas D'Barcelona (a) 57,419
WATER SUPPLY
11,679 I. Iberdrola SA 177,656
ELECTRIC SERVICES
12,600 Repsol SA 256,939
OIL AND GAS FIELD SERVICES
3,214 Tabacalera SA Class A 64,878
TOBACCO STEMMING AND REDRYING
14,923 Telefonica 717,893
COMMUNICATIONS SERVICES
4,637 Union Electrica Fenosa SA 60,555
ELECTRIC SERVICES
------------
3,056,187
------------
SWEDEN (2.4%)
2,431 ABB Ltd. (a) 227,640
RAILROADS
2,400 AGA AB 29,965
CHEMICALS AND ALLIED PRODUCTS
2,200 AGA AB Class B 27,209
CHEMICALS AND ALLIED PRODUCTS
1,900 Atlas Copco AB Class A (a) 51,810
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
3,700 Drott AB Class B (a) 30,071
REAL ESTATE AGENTS AND MANAGERS
6,300 Electrolux Class B 132,089
HOUSEHOLD APPLIANCES
25,600 Ericsson AB Class B 821,696
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
6,850 Forenings Sparbanken Class A (a) 96,823
FOREIGN BANKING
10,880 Hennes & Mauritz 269,124
FAMILY CLOTHING STORES
100 Hennes & Mauritz AB Class B 2,474
MISCELLANEOUS APPAREL AND ACCESSORY
STORES
5,200 Securitas AB Class B 77,788
MISCELLANEOUS BUSINESS SERVICES
</TABLE>
41-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
7,000 Skandia Forsakrings AB $ 131,100
INSURANCE AGENTS, BROKERS, AND SERVICE
8,700 Skandinaviska Enskilda Bankn Class A (a) 101,452
FOREIGN BANKING
3,000 Skanska Class B (a) 113,254
REAL ESTATE AGENTS AND MANAGERS
3,400 Svenska Cellulosa AB-B (a) 88,106
OTHER
8,990 Svenska Handelsbanken Class A 108,010
FOREIGN BANKING
2,800 Volvo Akttiebolag Class A (a) 80,803
MISCELLANEOUS TRANSPORTATION EQUIPMENT
5,000 Volvo Akttiebolag Class B 145,175
MISCELLANEOUS TRANSPORTATION EQUIPMENT
------------
2,534,589
------------
SWITZERLAND (6.4%)
40 ABB AG (a) 12,863
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
1,621 ABB Ltd. 152,733
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
240 Addecco SA 128,578
SERVICES
80 Alusuis-Lonza Holdings 93,231
MISCELLANEOUS MANUFACTURING INDUSTRIES
3,420 Credit Suisse Group (a) 591,684
FOREIGN BANKING
150 Gebruder Sulzer AG (a) 91,166
MACHINERY, EQUIPMENT, AND SUPPLIES
90 Holderbank Finan Glaris Class B (a) 106,216
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
500 Nestle 900,730
MISCELLANEOUS FOOD PREPARATIONS
870 Novartis AG 1,270,155
DRUGS
180 Roche Holdings AG (a) 296,363
CHEMICALS AND ALLIED PRODUCTS
890 Roche Holdings AG -- Genusschein 914,699
DRUGS
170 Sairgroup 35,589
AIR TRANSPORTATION & COURIER SERVICES
185 SCHW Rueckversicherungs 352,188
INSURANCE CARRIERS
30 SGS Soc Gen Surviellance Class B 31,064
SERVICES
180 SMH AG (a) 121,092
ELECTRONIC COMPONENTS AND ACCESSORIES
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
960 Swisscom AG (a) $ 361,192
TELEPHONE COMMUNICATIONS
300 The Swatch Group AG 42,834
ELECTRONIC COMPONENTS AND ACCESSORIES
2,703 Union Bank of Switzerland (a) 806,632
FOREIGN BANKING
710 Zuerich Allied AG 403,666
INSURANCE CARRIERS
------------
6,712,675
------------
UNITED KINGDOM (21.2%)
17,871 Abbey National (a) 335,494
FOREIGN BANKING
21,413 Allied Zurich PLC (a) 269,172
HOLDING OFFICES
5,416 AMEC PLC (a) 21,940
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
4,486 Anglian Water PLC 49,603
WATER SUPPLY
12,470 Arjo Wiggins Appleton PLC (a) 43,242
PAPER AND PAPER PRODUCTS
9,691 Associated British Foods PLC 64,080
MISCELLANEOUS FOOD PREPARATIONS
31,222 Astrazeneca PLC 1,210,333
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
14,718 BAA PLC (a) 141,515
AIRPORTS, FLYING FIELDS, AND AIRPORT
TERMINAL SERVICES
19,490 Barclay's PLC 567,108
COMMERCIAL BANKS
8,193 Barratt Developments PLC (a) 46,232
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
12,362 Bass PLC 179,364
EATING AND DRINKING PLACES
7,013 BBA Group (a) 53,834
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
49,113 BG PLC 299,977
GAS PRODUCTION AND DISTRIBUTION
12,530 Blue Circle Industries PLC 83,346
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
5,677 BOC Group (a) 110,959
CHEMICALS AND ALLIED PRODUCTS
13,810 Boots Co. PLC (a) 164,021
RETAIL STORES
</TABLE>
- ---------
42
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
7,760 BPB Industries PLC $ 45,991
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
22,351 British Aerospace PLC 145,062
AIRCRAFT AND PARTS
15,057 British Airways PLC 103,893
MISCELLANEOUS TRANSPORTATION SERVICES
28,771 British American Tobacco (a) 270,514
CIGARETTES
6,175 British Land Company PLC (a) 51,635
REAL ESTATE AGENTS AND MANAGERS
123,216 British Petroleum Co. PLC 2,208,265
CRUDE PETROLEUM AND NATURAL GAS
21,604 British Sky Broadcasting PLC (a) 200,403
COMMUNICATIONS SERVICES
23,960 British Steel (a) 62,032
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
82,096 British Telecommunications PLC 1,375,560
TELEPHONE COMMUNICATIONS
3,700 Burmah Castrol PLC 70,219
OIL AND GAS FIELD SERVICES
31,719 Cable & Wireless (a) 404,224
TELEPHONE COMMUNICATIONS
26,734 Cadbury Schweppes PLC 170,242
MISCELLANEOUS FOOD PREPARATIONS
9,771 Carlton Communications (a) 81,011
COMMUNICATIONS SERVICES
51,032 Centrica PLC 119,854
METAL MINING SERVICES
17,687 Commercial Union PLC 255,512
INSURANCE CARRIERS
9,335 Compass Group PLC 92,553
EATING AND DRINKING PLACES
45,259 Diageo PLC 472,622
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
7,147 Electrocomponents PLC 52,778
MISCELLANEOUS MANUFACTURING INDUSTRIES
18,304 Elementis (a) 30,006
CHEMICALS AND ALLIED PRODUCTS
10,620 EMI Group PLC (a) 85,205
PHOTOGRAPHIC STUDIOS
15,526 FKI Babcock 48,225
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
35,125 General Electric PLC (a) 358,215
ELECTRONIC COMPONENTS AND ACCESSORIES
9,040 GKN PLC 154,319
MOTOR VEHICLES, PARTS AND SUPPLIES
46,089 Glaxo Wellcome PLC 1,280,776
DRUGS
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
12,625 Granada Group PLC $ 234,224
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
12,900 Great Universal Stores 142,945
RETAIL STORES
23,082 Halifax PLC 275,419
FOREIGN BANKING
5,116 Hammerson Property Investment &
Development (a) 38,305
REAL ESTATE AGENTS AND MANAGERS
12,010 Hanson Trust PLC 106,674
MISCELLANEOUS MANUFACTURING INDUSTRIES
22,328 Hilton Group PLC 88,515
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
36,268 HSBC Holdings PLC 1,284,162
FOREIGN BANKING
7,486 IMI PLC (a) 30,345
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
9,702 Imperial Chemical Industries (a) 95,885
CHEMICALS AND ALLIED PRODUCTS
50,132 Invensys PLC 237,260
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
23,423 J. Sainsbury PLC (a) 147,682
MISCELLANEOUS FOOD STORES
4,055 Johnson Matthey PLC 39,628
ELECTRONIC COMPONENTS AND ACCESSORIES
17,937 Kingfisher PLC 206,394
NONSTORE RETAILERS
6,500 Land Securities PLC (a) 87,395
REAL ESTATE AGENTS AND MANAGERS
65,852 Legal and General PLC 167,633
INVESTMENT OFFICES
69,288 Lloyds TSB Group PLC 939,247
FOREIGN BANKING
11,477 London & Scotland Marine Oil (a) 26,232
OIL AND GAS FIELD SERVICES
37,178 Marks & Spencer PLC 215,067
RETAIL STORES
5,484 MEPC PLC 44,604
REAL ESTATE AGENTS AND MANAGERS
7,303 Misys PLC 62,506
COMPUTER PROGRAMMING & DATA PROCESSING
18,460 National Grid Group PLC (a) 128,465
ELECTRIC SERVICES
16,156 National Power PLC 117,651
ELECTRIC SERVICES
5,412 Next PLC (a) 65,729
RETAIL STORES
</TABLE>
43-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
4,020 Ocean Group PLC $ 66,533
MISCELLANEOUS TRANSPORTATION SERVICES
7,534 Pearson PLC 153,074
COMMUNICATIONS SERVICES
8,536 Peninsular & Orient Steam Navigation (a) 128,157
MISCELLANEOUS TRANSPORTATION SERVICES
26,601 Pilkington PLC (a) 38,710
FLAT GLASS
25,293 Prudential Corp. 372,366
LIFE INSURANCE
6,394 Railtrack Group PLC 130,718
HOLDING OFFICES
13,548 Rank Group (a) 53,868
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
13,875 Reed International Ltd. 92,566
HOLDING OFFICES
38,011 Rentokil Initial PLC 148,289
MISCELLANEOUS BUSINESS SERVICES
18,366 Reuters Group PLC 241,581
SECURITIES & COMMODITIES EXCHANGE
SERVICES
9,201 Rexam PLC 37,272
PAPER AND PAPER PRODUCTS
16,075 Rio Tinto PLC (a) 269,470
METAL MINING SERVICES
3,746 RMC Group PLC (a) 60,315
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
20,787 Rolls Royce PLC (a) 87,975
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
11,466 Royal Bank of Scotland Group PLC 233,506
FOREIGN BANKING
19,747 Royal Sun Alliance Insurance Group PLC 177,109
INSURANCE CARRIERS
17,714 Safeway PLC (a) 70,991
MISCELLANEOUS FOOD STORES
4,350 Schroders PLC (a) 88,862
MISCELLANEOUS INVESTING
12,074 Scottish & Southern Energy PLC (a) 123,515
ELECTRIC SERVICES
10,884 Scottish Newcastle Breweries PLC 113,314
EATING AND DRINKING PLACES
16,366 Scottish Power PLC 141,366
ELECTRIC SERVICES
6,520 Slough Estates PLC (a) 36,998
REAL ESTATE AGENTS AND MANAGERS
71,503 Smithkline Beecham PLC 929,260
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
4,477 Smiths Industries $ 59,136
ELECTRONIC COMPONENTS AND ACCESSORIES
11,062 St. James Place Capital PLC (a) 40,976
MISCELLANEOUS INVESTING
15,902 Stagecoach Holdings 56,961
MISCELLANEOUS TRANSPORTATION SERVICES
22,793 Tarmac PLC (a) 42,753
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
8,627 Tate & Lyle PLC (a) 54,053
SUGAR AND CONFECTIONERY PRODUCTS
86,164 Tesco PLC 221,717
MISCELLANEOUS FOOD STORES
5,074 Thames Water PLC (a) 80,458
WATER SUPPLY
7,443 TI Group PLC (a) 49,861
MISCELLANEOUS MANUFACTURING INDUSTRIES
36,773 Unilever PLC 327,202
MISCELLANEOUS FOOD PREPARATIONS
7,767 United Utilities PLC (a) 94,391
WATER SUPPLY
40,008 Vodafone Group PLC 788,278
TELEPHONE COMMUNICATIONS
13,016 Williams PLC 85,964
MISCELLANEOUS MANUFACTURING INDUSTRIES
8,838 Wolseley PLC (a) 66,520
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
------------
22,325,388
------------
TOTAL COMMON STOCKS
(cost $88,963,850) 101,163,725
PREFERRED STOCK (.5%)
AUSTRALIA (.2%)
21,257 News Corporation Ltd. 161,640
COMMUNICATIONS SERVICES
953 Westfield Trust 1,914
TRUSTS
------------
163,554
------------
GERMANY (.3%)
1,750 RWE (a) 61,099
MISCELLANEOUS MANUFACTURING INDUSTRIES
550 SAP AG (a) 219,497
COMPUTER PROGRAMMING & DATA PROCESSING
1,050 Volkswagen AG 38,768
AUTOMOTIVE SERVICES, EXCEPT REPAIR
------------
319,364
------------
TOTAL PREFERRED STOCK
(cost $470,260) 482,918
</TABLE>
- ---------
44
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------
SHORT-TERM INVESTMENTS (3.5%)
<C> <S> <C>
$3,697,000 U.S. Treasury Bills 4.430% and 4.455%,
due July, 1999 and August, 1999
(cost $3,683,557) $ 3,683,663
------------
TOTAL INVESTMENTS (99.9%)
(cost $93,117,667) 105,330,306
CASH AND OTHER ASSETS, LESS
LIABILITIES (0.1%) 110,224
------------
NET ASSETS (100.0%) $105,440,530
------------
------------
</TABLE>
(a) Non-income producing security.
At June 30, 1999, net unrealized appreciation of $12,212,639 consisted of gross
unrealized appreciation of $15,546,227 and gross unrealized depreciation of
$3,333,588 based on cost of $93,117,667 for federal income tax purposes.
INTERNATIONAL FUND INDUSTRY CLASSES
<TABLE>
<CAPTION>
INDUSTRY VALUE %
- ---------------------------------------- ------------ ------
<S> <C> <C>
Banks $ 14,867,793 14.10%
Communications 14,456,192 13.71%
Machinery, Manufacturing & Construction 11,994,255 11.38%
Consumer Goods & Services 10,112,090 9.59%
Healthcare 8,073,296 7.66%
Mining & Refining 7,656,349 7.26%
Transportation 7,143,067 6.77%
Insurance 5,928,318 5.62%
Retail 5,223,866 4.96%
Real Estate and Other Financial 4,368,581 4.14%
Agriculture, Foods & Beverage 4,318,229 4.10%
Energy & Utilities 3,510,028 3.33%
Chemicals 2,935,453 2.78%
Other 1,059,126 1.00%
------------ ------
Total Stocks 101,646,643 96.40%
Short-term Investments 3,683,663 3.50%
Cash and Other Assets, Less Liabilities 110,224 0.10%
------------ ------
Net Assets $105,440,530 100.00%
------------ ------
------------ ------
</TABLE>
See accompanying notes to financial statements.
45-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST STOCK AND BOND BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
- ------- -----------
<C> <S> <C>
COMMON STOCKS (99.6%)
837,274 State Farm Variable Product Trust Bond
Fund $ 8,180,166
953,968 State Farm Variable Product Trust Large
Cap Equity Index Fund 13,670,366
-----------
TOTAL COMMON STOCKS
(cost $20,727,067) 21,850,532
CASH AND OTHER ASSETS, LESS LIABILITIES (0.4%)
84,581
-----------
NET ASSETS (100.0%) $21,935,113
-----------
-----------
</TABLE>
Notes:
At June 30, 1999, net unrealized appreciation of $1,123,465 consisted of gross
unrealized appreciation of $1,302,052 and gross unrealized depreciation of
$178,587 based on cost of $20,727,067 for federal income tax purposes.
See accompanying notes to financial statements.
- ---------
46
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY
AMOUNT RATE DATE VALUE
- ---------- ------ ------------------ -----------
<C> <S> <C> <C> <C>
CORPORATE BONDS (88.6%)
AGRICULTURE, FOODS, & BEVERAGE (3.9%)
$2,000,000 Dean Foods Company 6.750% June 15, 2005 $ 1,993,920
-----------
AUTOMOTIVE (4.7%)
500,000 Ford Motor Credit Company 6.500% February 28, 2002 501,175
1,500,000 General Motors Acceptance
Corp. 6.150% April 5, 2007 1,432,080
500,000 Paccar Financial Corp. 5.970% November 15, 2001 496,985
-----------
2,430,240
-----------
BUILDING MATERIALS & CONSTRUCTION (5.2%)
750,000 Masco Corp. 6.125% September 15, 2003 737,415
2,000,000 Vulcan Materials Company 5.750% April 1, 2004 1,942,680
-----------
2,680,095
-----------
CHEMICALS (8.2%)
1,000,000 Air Products & Chemicals Inc. 6.250% June 15, 2003 985,310
1,000,000 BF Goodrich Co. 6.600% May 15, 2009 960,560
825,000 Dow Capital 7.375% July 15, 2002 838,093
500,000 E.I. du Pont de Nemours and
Company 6.000% March 6, 2003 492,170
1,000,000 Praxair Inc. 6.900% November 1, 2006 985,120
-----------
4,261,253
-----------
COMMERCIAL SERVICE/SUPPLY (2.2%)
350,000 Pitney Bowes Credit 5.650% January 15, 2003 342,884
850,000 Xerox Corporation 5.500% November 15, 2003 818,116
-----------
1,161,000
-----------
COMPUTERS (2.6%)
1,500,000 International Business
Machines Corporation 5.375% February 1, 2009 1,365,885
-----------
CONSUMER & MARKETING (8.6%)
2,000,000 Clorox Co. 8.800% July 15, 2001 2,097,220
1,000,000 Colgate Palmolive Co. 6.000% August 15, 2003 987,660
150,000 Kimberly Clark Corp. 8.625% May 1, 2001 156,738
425,000 Mattel Inc. 6.000% July 15, 2003 414,842
500,000 McDonald's Corporation 5.900% May 11, 2001 498,020
300,000 The Procter & Gamble Company 5.250% September 15, 2003 289,095
-----------
4,443,575
-----------
ELECTRONIC/ELECTRICAL MFG. (4.7%)
500,000 Emerson Electric Co. 5.500% September 15, 2008 460,800
2,000,000 Raytheon Co. 5.950% March 15, 2001 1,991,120
-----------
2,451,920
-----------
FINANCIAL SERVICES (3.5%)
300,000 Associates Corp. of North
America 5.875% May 16, 2001 297,759
500,000 Household Finance 5.875% November 1, 2002 490,135
</TABLE>
47-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY
AMOUNT RATE DATE VALUE
- ---------- ------ ------------------ -----------
<C> <S> <C> <C> <C>
$1,000,000 Sears Roebuck Acceptance Corp. 7.140% May 2, 2003 $ 1,018,600
-----------
1,806,494
-----------
FOREST PRODUCTS (6.3%)
2,000,000 International Paper Co. 7.875% August 1, 2006 2,080,800
500,000 Mead Corporation 6.600% March 1, 2002 501,235
660,000 Westvaco Corp. 9.650% March 1, 2002 708,206
-----------
3,290,241
-----------
HEALTH CARE (1.8%)
500,000 Abbott Laboratories 5.400% September 15, 2008 459,985
500,000 Warner Lambert Co. 5.750% January 15, 2003 491,395
-----------
951,380
-----------
MACHINERY & MANUFACTURING (8.5%)
300,000 AlliedSignal Inc. 9.875% June 1, 2002 326,370
400,000 Caterpillar Finance 6.750% July 10, 2001 404,044
1,425,000 Dover Corp. 6.250% June 1, 2008 1,376,650
1,500,000 Parker Hannifin Corp. 5.650% September 15, 2003 1,457,460
900,000 TRW Inc. 6.730% July 11, 2007 863,325
-----------
4,427,849
-----------
MEDIA & BROADCASTING (2.7%)
500,000 New York Times 5.000% October 8, 2003 476,425
406,000 The Walt Disney Company 6.375% March 30, 2001 408,335
500,000 Tribune Co. 5.750% September 15, 2003 486,785
-----------
1,371,545
-----------
MINING & METALS (0.9%)
500,000 ALCOA Inc. 6.125% June 15, 2005 484,600
-----------
OIL, GAS, & OTHER ENERGY (4.5%)
2,270,000 Mobil Corp. 8.375% February 12, 2001 2,352,424
-----------
RETAILERS (4.1%)
500,000 Sherwin Williams Co. 6.500% February 1, 2002 502,735
1,550,000 Wal-Mart Stores Inc. 8.625% April 1, 2001 1,615,550
-----------
2,118,285
-----------
TELECOM & TELECOM EQUIPMENT (11.6%)
750,000 Ameritech Capital Funding
Corp. 5.650% January 15, 2001 746,775
1,250,000 Ameritech Capital Funding
Corp. 6.125% October 15, 2001 1,249,363
1,000,000 AT&T Corp. 7.000% May 15, 2005 1,015,000
1,000,000 Bellsouth Telecommunications 6.500% June 15, 2005 1,003,170
200,000 Nortel Networks Corp. 6.875% October 1, 2002 203,316
1,500,000 Southwestern Bell 6.250% October 15, 2002 1,496,940
300,000 Worldcom Inc. 6.125% August 15, 2001 298,467
-----------
6,013,031
-----------
UTILITIES & ENERGY (4.6%)
1,000,000 Carolina Power & Light Co. 7.875% April 15, 2004 1,052,060
</TABLE>
- ---------
48
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY
AMOUNT RATE DATE VALUE
- ---------- ------ ------------------ -----------
<C> <S> <C> <C> <C>
$ 300,000 Georgia Power 6.000% March 1, 2000 $ 300,465
500,000 Public Service Co. of Colorado 6.240% November 27, 2000 500,695
500,000 Virginia Electric & Power 7.375% July 1, 2002 512,990
-----------
2,366,210
-----------
TOTAL CORPORATE BONDS
(cost $47,239,173) 45,969,947
LONG-TERM U.S. TREASURY OBLIGATIONS (3.0%)
1,500,000 U.S. Treasury Notes
(cost $1,595,984) 7.500% May 15, 2002 1,571,580
-----------
SHORT-TERM INVESTMENTS (7.7%)
1,200,000 General Motors Acceptance
Corp. 4.900% July 6, 1999 1,201,636
2,000,000 General Electric Capital Corp. 4.700% July 1, 1999 2,001,830
777,282 Chase Vista Treasury Plus
Money Market Fund 4.580% July 1, 1999 777,282
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $3,980,748) 3,980,748
-----------
TOTAL INVESTMENTS (99.3%)
(cost $52,815,905) 51,522,275
CASH AND OTHER ASSETS, LESS LIABILITIES (0.7%) 350,849
-----------
NET ASSETS (100.0%) $51,873,124
-----------
-----------
</TABLE>
Notes:
At June 30, 1999, net unrealized depreciation of $1,293,630 consisted of gross
unrealized appreciation of $1,024 and gross unrealized depreciation of
$1,294,654 based on cost of $52,815,905 for federal income tax purposes.
See accompanying notes to financial statements.
49-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY
AMOUNT RATE DATE VALUE
- ---------- ----------------- ----------------- -----------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (100.9%)
AGRICULTURE, FOODS, & BEVERAGE (9.1%)
$1,270,000 Coca-Cola Company 4.780% July 22, 1999 $ 1,266,459
1,470,000 Sara Lee Corporation 4.820% July 6, 1999 1,469,016
-----------
2,735,475
-----------
AUTOMOTIVE (9.5%)
1,440,000 Ford Motor Credit Co. 4.870% August 19, 1999 1,444,691
1,435,000 General Motors Acceptance
Corp. 4.900% August 6, 1999 1,441,672
-----------
2,886,363
-----------
CHEMICALS (4.8%)
1,460,000 E.I. du Pont de Nemours and
Company 4.890% September 9, 1999 1,446,118
-----------
COMPUTERS (4.6%)
1,360,000 International Business
Machines Corporation 4.843% July 8, 1999 1,377,567
-----------
ELECTRONIC/ELECTRICAL MFG. (4.5%)
1,345,000 General Electric Capital Corp. 4.810% September 2, 1999 1,355,139
-----------
FINANCIAL SERVICES (7.0%)
1,285,000 Associates Corp. of North
America 4.825% August 12, 1999 1,298,090
808,556 Chase Vista Treasury Plus
Money Market Fund 4.580% July 1, 1999 808,556
-----------
2,106,646
-----------
HEALTH CARE (14.0%)
1,395,000 Abbott Laboratories 4.770% July 13, 1999 1,392,782
1,375,000 Johnson & Johnson (a) 4.760% October 21, 1999 1,354,638
1,485,000 Pfizer Inc. (a) 4.900% July 20, 1999 1,481,159
-----------
4,228,579
-----------
MACHINERY & MANUFACTURING (4.8%)
1,440,000 John Deere Credit Co. 4.863% and 4.917% July 29, 1999 1,456,800
-----------
OIL, GAS, & OTHER ENERGY (8.7%)
1,460,000 Chevron Corporation 4.912% August 26, 1999 1,464,382
1,175,000 Shell Oil Co. 4.850% August 10, 1999 1,168,668
-----------
2,633,050
-----------
RETAILERS (4.7%)
1,400,000 Sears Roebuck Acceptance Corp. 4.850% August 5, 1999 1,407,921
-----------
TELECOM & TELECOM EQUIPMENT (4.4%)
1,350,000 Ameritech Corp. 4.780% July 26, 1999 1,345,519
-----------
U.S. GOVERNMENT (24.8%)
1,500,000 Freddie Mac 4.740% July 1, 1999 1,500,000
2,000,000 Freddie Mac 4.770% July 1, 1999 2,000,000
2,000,000 Freddie Mac 5.030% July 26, 1999 1,993,014
2,000,000 Freddie Mac 4.850% August 23, 1999 1,985,719
-----------
7,478,733
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $30,457,910) 30,457,910
LIABILITIES, LESS CASH AND OTHER ASSETS (-0.9%) (278,371)
-----------
NET ASSETS (100.0%) $30,179,539
-----------
-----------
</TABLE>
(a) Securities exempt from registration under Section 4(2) of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 1999,
the value of these securities amounted to $2,835,797, or 9.4% of net
assets.
See accompanying notes to financial statements.
- ---------
50
<PAGE>
(This page has been left blank intentionally.)
51-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
06/30/1999
(UNAUDITED)
<TABLE>
<CAPTION>
LARGE CAP
EQUITY INDEX
FUND
------------
<S> <C>
ASSETS
Investments in
securities:
At identified cost $124,708,397
------------
------------
At value $140,001,031
Cash 847
Foreign currency at
value (cost $351,780) --
Receivable for:
Dividends and
interest 117,006
Shares of the Fund
sold 487,682
Securities sold 694,895
Expense cap
reimbursement --
Variation margin 357,275
Prepaid expenses 4,080
------------
Total assets 141,662,816
------------
LIABILITIES AND NET
ASSETS
Dividends payable to
shareowners --
Payable for:
Securities purchased 1,277,769
Manager 80,915
Other 9,935
------------
Total liabilities 1,368,619
------------
Net assets applicable
to shares outstanding
of common stock 140,294,197
------------
Fund shares outstanding 9,788,975
Net asset value,
offering price and
redemption price per
share $ 14.33
------------
------------
ANALYSIS OF NET ASSETS
Excess of amounts
received from sales
of shares over
amounts paid on
redemptions of shares
on account of capital $121,763,149
Accumulated net
realized gain (loss) 2,110,037
Net unrealized
appreciation
(depreciation) 15,725,284
Undistributed net
investment income 695,727
------------
Net assets applicable
to shares
outstanding $140,294,197
------------
------------
</TABLE>
See accompanying notes to financial statements.
- ---------
52
<PAGE>
<TABLE>
<CAPTION>
SMALL CAP INTERNATIONAL STOCK & BOND MONEY
EQUITY INDEX EQUITY INDEX BALANCED BOND MARKET
FUND FUND FUND FUND FUND
------------- -------------- ----------------- ------------------ --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in
securities:
At identified cost 64,450,865 93,117,667 20,727,067 52,815,905 30,457,910
------------- -------------- ----------------- ------------------ --------------
------------- -------------- ----------------- ------------------ --------------
At value 69,237,206 105,330,306 21,850,532 51,522,275 30,457,910
Cash 322 138 13 -- --
Foreign currency at
value (cost $351,780) -- 345,964 -- -- --
Receivable for:
Dividends and
interest 81,786 263,060 84,568 828,928 3,407
Shares of the Fund
sold 152,047 -- 99,053 189,568 61,568
Securities sold 521,826 34,755 -- -- --
Expense cap
reimbursement -- 1,942 7,340 -- --
Variation margin 36,375 -- -- -- --
Prepaid expenses 1,390 -- -- 1,217 868
------------- -------------- ----------------- ------------------ --------------
Total assets 70,030,952 105,976,165 22,041,506 52,541,988 30,523,753
------------- -------------- ----------------- ------------------ --------------
LIABILITIES AND NET
ASSETS
Dividends payable to
shareowners -- -- -- 595,882 301,727
Payable for:
Securities purchased 627,519 313,260 99,053 -- --
Manager 68,073 201,067 -- 60,167 29,293
Other 16,149 21,308 7,340 12,815 13,194
------------- -------------- ----------------- ------------------ --------------
Total liabilities 711,741 535,635 106,393 668,864 344,214
------------- -------------- ----------------- ------------------ --------------
Net assets applicable
to shares outstanding
of common stock 69,319,211 105,440,530 21,935,113 51,873,124 30,179,539
------------- -------------- ----------------- ------------------ --------------
Fund shares outstanding 6,702,499 8,757,262 1,802,344 5,310,271 30,179,539
Net asset value,
offering price and
redemption price per
share 10.34 12.04 12.17 9.77 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 64,717,087 92,449,390 20,648,794 53,185,743 30,179,539
Accumulated net
realized gain (loss) (554,616) 159,423 (8,563) (18,989) --
Net unrealized
appreciation
(depreciation) 4,849,791 12,206,407 1,123,465 (1,293,630) --
Undistributed net
investment income 306,949 625,310 171,417 -- --
------------- -------------- ----------------- ------------------ --------------
Net assets applicable
to shares
outstanding 69,319,211 105,440,530 21,935,113 51,873,124 30,179,539
------------- -------------- ----------------- ------------------ --------------
------------- -------------- ----------------- ------------------ --------------
</TABLE>
See accompanying notes to financial statements.
53-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
1999 LARGE CAP SMALL CAP
(UNAUDITED) AND EQUITY INDEX EQUITY INDEX
FOR THE PERIOD FROM THE DATE FUND FUND
OF INCEPTION TO -------------------------- -------------------------
DECEMBER 31, 1998 1999 1998 1999 1998
- ---------------------------- ------------ ----------- ----------- -----------
DATE OF INCEPTION 1/22/98 1/29/98
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 575,324 328,684 355,143 443,671
Interest 270,587 130,191 80,083 41,268
------------ ----------- ----------- -----------
845,911 458,875 435,226 484,939
Less: foreign withholding
taxes 10,725 1,833 124 108
------------ ----------- ----------- -----------
Total investment income 835,186 457,042 435,102 484,831
EXPENSES:
Investment advisory and
management fees 121,729 46,527 105,736 118,508
Professional fees 10,564 11,083 9,269 10,834
Fidelity bond expense 1,014 1,114 1,048 1,253
Trustees' fees 2,408 4,909 2,408 4,909
Reports to shareowners 791 1,499 807 1,499
Security valuation fees 4,654 8,866 13,547 24,587
Custodian fees -- -- -- --
Index license fees 2,484 5,000 2,493 5,119
Fund accounting expense -- -- -- --
Other -- 31 -- 27
------------ ----------- ----------- -----------
Total expenses 143,644 79,029 135,308 166,736
Less: expense
reimbursement -- -- 3,138 16,690
------------ ----------- ----------- -----------
Net expenses 143,644 79,029 132,170 150,046
------------ ----------- ----------- -----------
Net investment income 691,542 378,013 302,932 334,785
REALIZED AND UNREALIZED GAIN
(LOSS) :
Accumulated net realized
gain (loss) on sales
of investments 145,998 22,524 (885,259) 860,154
Accumulated net realized
gain (loss) on forward
foreign currency
contracts -- -- -- --
Accumulated net realized
gain (loss) on foreign
currency transactions -- -- -- --
Accumulated net realized
gain (loss) on futures
contracts 1,694,966 246,549 264,589 (38,747)
Net unrealized gain on
open futures contracts 7,050 425,600 4,900 58,550
Net unrealized
appreciation or
depreciation on
investments and
foreign currency
transactions 8,483,613 6,809,021 5,829,883 (1,043,542)
------------ ----------- ----------- -----------
Net realized and
unrealized gain (loss)
on investments 10,331,627 7,503,694 5,214,113 (163,585)
------------ ----------- ----------- -----------
Net change in net assets
resulting from
operations $ 11,023,169 7,881,707 5,517,045 171,200
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
- ---------
54
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK & BOND MONEY
EQUITY INDEX BALANCED BOND MARKET
FUND FUND FUND FUND
-------------------------- --------------------- ----------------------- ---------------------
1999 1998 1999 1998 1999 1998 1999 1998
----------- ------------ --------- --------- ----------- --------- --------- ---------
1/22/98 1/29/98 1/22/98 1/29/98
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends 1,202,631 1,210,085 126,960 47,205 -- -- -- --
Interest 72,243 87,600 -- -- 1,109,322 750,590 594,098 638,747
----------- ------------ --------- --------- ----------- --------- --------- ---------
1,274,874 1,297,685 126,960 47,205 1,109,322 750,590 594,098 638,747
Less: foreign withholding
taxes 108,458 104,517 -- -- -- -- -- --
----------- ------------ --------- --------- ----------- --------- --------- ---------
Total investment income 1,166,416 1,193,168 126,960 47,205 1,109,322 750,590 594,098 638,747
EXPENSES:
Investment advisory and
management fees 247,083 325,393 -- -- 96,717 51,817 48,162 39,751
Professional fees 12,059 18,200 2,838 5,245 7,772 10,807 6,917 10,562
Fidelity bond expense 1,077 2,070 925 575 501 821 547 702
Trustees' fees 2,594 4,500 2,408 4,909 2,408 4,909 2,408 4,908
Reports to shareowners 744 1,414 778 1,002 791 1,499 807 1,503
Security valuation fees 28,304 44,336 -- -- 1,923 1,859 163 237
Custodian fees 56,443 91,529 1,302 2,178 1,188 3,139 1,259 3,541
Index license fees 5,217 10,001 -- -- -- -- -- --
Fund accounting expense 26,956 51,372 -- -- -- -- -- --
Other -- -- -- -- -- 15 -- 13
----------- ------------ --------- --------- ----------- --------- --------- ---------
Total expenses 380,477 548,815 8,251 13,909 111,300 74,866 60,263 61,217
Less: expense
reimbursement 43,545 107,042 8,251 13,909 -- -- 62 10,516
----------- ------------ --------- --------- ----------- --------- --------- ---------
Net expenses 336,932 441,773 -- -- 111,300 74,866 60,201 50,701
----------- ------------ --------- --------- ----------- --------- --------- ---------
Net investment income 829,484 751,395 126,960 47,205 998,022 675,724 533,897 588,046
REALIZED AND UNREALIZED GAIN
(LOSS) :
Accumulated net realized
gain (loss) on sales
of investments 42,029 117,394 (2,374) (6,189) (1,865) (17,124) -- --
Accumulated net realized
gain (loss) on forward
foreign currency
contracts (131,231) 105,894 -- -- -- -- -- --
Accumulated net realized
gain (loss) on foreign
currency transactions 153,134 (187,378) -- -- -- -- -- --
Accumulated net realized
gain (loss) on futures
contracts -- -- -- -- -- -- -- --
Net unrealized gain on
open futures contracts -- -- -- -- -- -- -- --
Net unrealized
appreciation or
depreciation on
investments and
foreign currency
transactions 2,391,044 9,815,363 775,865 347,600 (1,499,235) 205,605 -- --
----------- ------------ --------- --------- ----------- --------- --------- ---------
Net realized and
unrealized gain (loss)
on investments 2,454,976 9,851,273 773,491 341,411 (1,501,100) 188,481 -- --
----------- ------------ --------- --------- ----------- --------- --------- ---------
Net change in net assets
resulting from
operations 3,284,460 10,602,668 900,451 388,616 (503,078) 864,205 533,897 588,046
----------- ------------ --------- --------- ----------- --------- --------- ---------
----------- ------------ --------- --------- ----------- --------- --------- ---------
</TABLE>
See accompanying notes to financial statements.
55-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
1999 LARGE CAP SMALL CAP
(UNAUDITED) AND EQUITY INDEX EQUITY INDEX
FOR THE PERIOD FROM THE FUND FUND
DATE OF INCEPTION TO ------------------------- ------------------------
DECEMBER 31, 1998 1999 1998 1999 1998
- ------------------------- ------------ ----------- ----------- -----------
DATE OF INCEPTION 1/22/98 1/29/98
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 691,542 378,013 302,932 334,785
Accumulated net
realized gain (loss) 1,840,964 269,073 (620,670) 821,407
Net unrealized
appreciation
(depreciation) 8,490,663 7,234,621 5,834,783 (984,992)
------------ ----------- ----------- -----------
Net change in net assets
resulting from
operations 11,023,169 7,881,707 5,517,045 171,200
DISTRIBUTIONS TO
SHAREOWNERS FROM AND IN
EXCESS OF:
Net investment income -- (373,828) -- (330,768)
Net realized gain -- -- -- (755,353)
------------ ----------- ----------- -----------
Total distributions to
shareowners -- (373,828) -- (1,086,121)
FROM FUND SHARE
TRANSACTIONS:
Proceeds from shares
sold 76,416,915 30,942,223 22,319,336 11,591,139
Reinvestment of
distributions -- 373,828 -- 1,086,121
------------ ----------- ----------- -----------
76,416,915 31,316,051 22,319,336 12,677,260
Less payments for
shares redeemed 450,609 519,208 142,606 136,903
------------ ----------- ----------- -----------
Net increase in net
assets from Fund share
transactions 75,966,306 30,796,843 22,176,730 12,540,357
------------ ----------- ----------- -----------
Total increase in net
assets 86,989,475 38,304,722 27,693,775 11,625,436
------------ ----------- ----------- -----------
NET ASSETS:
Beginning of period 53,304,722 15,000,000 41,625,436 30,000,000
------------ ----------- ----------- -----------
End of period+ $140,294,197 53,304,722 69,319,211 41,625,436
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
+Includes undistributed
(distribution in excess
of) net investment
income of $ 695,727 4,185 306,949 4,017
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
- ---------
56
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK & BOND MONEY
EQUITY INDEX BALANCED BOND MARKET
FUND FUND FUND FUND
------------------------- ----------------------- ------------------------ ------------------------
1999 1998 1999 1998 1999 1998 1999 1998
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
1/22/98 1/29/98 1/22/98 1/29/98
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income 829,484 751,395 126,960 47,205 998,022 675,724 533,897 588,046
Accumulated net
realized gain (loss) 63,932 35,910 (2,374) (6,189) (1,865) (17,124) -- --
Net unrealized
appreciation
(depreciation) 2,391,044 9,815,363 775,865 347,600 (1,499,235) 205,605 -- --
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Net change in net assets
resulting from
operations 3,284,460 10,602,668 900,451 388,616 (503,078) 864,205 533,897 588,046
DISTRIBUTIONS TO
SHAREOWNERS FROM AND IN
EXCESS OF:
Net investment income -- (895,988) -- (2,748) (998,022) (675,724) (533,897) (588,046)
Net realized gain -- -- -- -- -- -- -- --
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Total distributions to
shareowners -- (895,988) -- (2,748) (998,022) (675,724) (533,897) (588,046)
FROM FUND SHARE
TRANSACTIONS:
Proceeds from shares
sold 25,508,512 12,288,814 15,853,906 5,522,631 28,441,105 14,570,954 12,672,839 8,868,290
Reinvestment of
distributions -- 895,988 -- 2,748 998,022 675,724 533,897 588,046
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
25,508,512 13,184,802 15,853,906 5,525,379 29,439,127 15,246,678 13,206,736 9,456,336
Less payments for
shares redeemed 49,574 194,350 394,056 336,535 732,289 767,773 1,708,614 774,919
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Net increase in net
assets from Fund share
transactions 25,458,938 12,990,452 15,459,850 5,188,844 28,706,838 14,478,905 11,498,122 8,681,417
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Total increase in net
assets 28,743,398 22,697,132 16,360,301 5,574,712 27,205,738 14,667,386 11,498,122 8,681,417
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
NET ASSETS:
Beginning of period 76,697,132 54,000,000 5,574,812 100 24,667,386 10,000,000 18,681,417 10,000,000
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
End of period+ 105,440,530 76,697,132 21,935,113 5,574,812 51,873,124 24,667,386 30,179,539 18,681,417
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
+Includes undistributed
(distribution in excess
of) net investment
income of 625,309 (226,077) 171,417 44,457 -- -- -- --
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
57-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS
1. OBJECTIVE
State Farm Variable Product Trust (the "Trust") has six separate investment
portfolios (the "Funds"). Shares of each Fund are offered exclusively in
connection with variable annuity and variable life insurance policies issued by
State Farm Life Insurance Company and State Farm Life and Accident Assurance
Company. Each Fund is a separate investment portfolio with its own investment
objective, investment policies, restrictions, and attendant risks.
The LARGE CAP EQUITY INDEX FUND (LARGE CAP FUND) seeks to match the performance
of the Standard and Poor's Composite Index of 500 Stocks-Registered Trademark-
(the "S&P 500") by investing in the securities that make up the S&P 500. The S&P
500 tracks the common stock performance of 500 large U.S. companies in the
manufacturing, utility, transportation, and financial industries.
The SMALL CAP EQUITY INDEX FUND (SMALL CAP FUND) seeks to match the performance
of the Russell 2000 Small Stock Index-Registered Trademark- (the "Russell
2000"). This Fund invests primarily in some of the stocks found in the Russell
2000. The Russell 2000 tracks the common stock performance of about 2,000 small
U.S. companies.
The INTERNATIONAL EQUITY INDEX FUND (INTERNATIONAL FUND) seeks to match the
performance of the Morgan Stanley Capital International Europe, Australia and
Far East Free Index-Registered Trademark-(the "EAFE Free"). This Fund invests
primarily in some of the stocks found in the EAFE Free. The EAFE Free tracks the
common stock (or equivalent) performance of companies in which U.S. investors
can invest in Europe, Australia, New Zealand and the Far East.
The STOCK AND BOND BALANCED FUND (BALANCED FUND) seeks long-term growth of
capital, balanced with current income.
The BOND FUND (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 invests primarily in quality bonds issued by domestic
companies.
The MONEY MARKET FUND (MONEY MARKET FUND) seeks to maximize current income to
the extent consistent with the preservation of capital and maintenance of
liquidity.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Investments are stated at 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. Investments in affiliated
investment companies are valued each day based on the closing net asset value of
the respective fund. Futures contracts are valued at the settlement price
established each day on the exchange on which they are traded. Forward foreign
currency contracts are valued daily using quoted forward exchange rates. 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 on each day the New York Stock
Exchange is open, 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 values are determined as of the close of regular session trading on the
New York Stock Exchange (usually 3:00 p.m. Bloomington, Illinois time, but
sometimes earlier).
- ---------
58
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
FEDERAL INCOME TAXES, DIVIDENDS AND DISTRIBUTIONS TO SHAREOWNERS
It is the Funds' 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 their taxable income, as well as any net realized
gain on sales of investments reportable for federal income tax purposes. The
Funds' intend to comply with this policy and, accordingly, no provision for
federal income taxes has been made.
Dividends and distributions payable to shareowners are recorded by the Large
Cap, Small Cap, International, and Balanced Funds on the ex-dividend date. The
Bond and Money Market Funds declare dividends daily equal to each Fund's
respective net investment income, and distributions of such amounts are made at
the end of each calendar quarter. Income and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. The differences are primarily due to
differing treatments for foreign currency transactions.
The accumulated net realized loss on sales of investments in the Bond Fund at
December 31, 1998, amounting to $17,124, is available to offset future taxable
gains. If not applied, the capital loss carryover will expire in 2006.
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 Funds may enter into stock index
futures contracts to hedge a portion of their portfolios. These contracts
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.
Gains and losses are reflected as net realized gain (loss) on futures contracts
in the statement of operations. Additionally, the International 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.
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 average daily net assets
Small Cap Equity Index Fund .40% of average daily net assets
International Equity Index Fund .55% of average daily net assets
Stock and Bond Balanced Fund None
Bond Fund .50% of average daily net assets
Money Market Fund .40% of average daily net assets
</TABLE>
The Manager has agreed not to be paid an investment advisory fee for performing
its services for the Balanced Fund and has agreed to reimburse any other
expenses incurred by the 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 Balanced Fund invests.
With respect to each of the Funds other than the Balanced and International
Funds, the Manager has agreed to reimburse 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 Fund, the Manager has agreed
to reimburse 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.
59-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Investment advisory and management fees and expenses reimbursed were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998
----------------------------- -----------------------------
INVESTMENT INVESTMENT
ADVISORY AND FEES ADVISORY AND FEES
FUND MANAGEMENT FEE REIMBURSED MANAGEMENT FEE REIMBURSED
- ------------------------------ --------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Large Cap Equity Index Fund $121,729 -- 46,527 --
Small Cap Equity Index Fund 105,736 3,138 118,508 16,690
International Equity Index
Fund 247,083 43,545 325,393 107,042
Stock and Bond Balanced Fund -- 8,251 -- 13,909
Bond Fund 96,717 -- 51,817 --
Money Market Fund 48,162 62 39,751 10,516
</TABLE>
The Funds do not pay any discount, commission or other compensation for transfer
agent or underwriting services provided by the Manager.
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 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.
Certain officers and/or trustees of the Trust are also officers and/or directors
of the Manager. The Funds made no payments to their officers or trustees except
for the following trustees' fees paid to the Trust's independent trustees:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998
----------------- ------------------
<S> <C> <C>
Large Cap Equity Index Fund $2,400 4,500
Small Cap Equity Index Fund 2,400 4,500
International Equity Index Fund 2,400 4,500
Stock and Bond Balanced Fund 2,400 4,500
Bond Fund 2,400 4,500
Money Market Fund 2,400 4,500
</TABLE>
- ---------
60
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENT TRANSACTIONS
Investment transactions (exclusive of short-term instruments) were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998
----------------- ------------------
<S> <C> <C>
LARGE CAP EQUITY INDEX FUND
Purchases $79,097,312 36,104,771
Proceeds from sales 2,228,104 1,671,512
SMALL CAP EQUITY INDEX FUND
Purchases 25,802,104 52,304,379
Proceeds from sales 3,812,006 12,266,263
INTERNATIONAL EQUITY INDEX FUND
Purchases 26,280,194 68,386,025
Proceeds from sales 1,454,700 3,948,180
STOCK AND BOND BALANCED FUND:
Large Cap Equity Index Fund
Purchases 9,374,125 3,275,491
Proceeds from sales 98,215 177,057
Bond Fund
Purchases 6,309,916 2,239,590
Proceeds from sales 65,477 122,744
BOND FUND
Purchases 29,723,575 24,106,604
Proceeds from sales 1,523,798 3,284,209
</TABLE>
5. FUTURES AND FOREIGN CURRENCY CONTRACTS
The Large Cap and Small Cap Funds had the following open futures contracts at
June 30, 1999:
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF CONTRACT EXPIRATION GAIN AT
FUND TYPE CONTRACTS AMOUNT POSITION MONTH 06/30/1999
- -------------------- -------------------- --------- ----------- --------- --------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Large Cap Equity
Index Fund S&P 500 Index 38 $12,693,500 Long September '99 $432,650
Small Cap Equity
Index Fund Russell 2000 Index 10 2,246,550 Long September '99 63,450
</TABLE>
The aggregate market value of investments pledged to cover margin requirements
for the open positions at June 30, 1999 were $13,126,150 and $2,310,000 in the
Large Cap and Small Cap Funds respectively.
61-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. FUND SHARE TRANSACTIONS
Proceeds and payments on Fund shares as shown in the statements of changes in
net assets are in respect of the following number of shares:
<TABLE>
<CAPTION>
LARGE CAP EQUITY SMALL CAP EQUITY INTERNATIONAL EQUITY
INDEX FUND INDEX FUND INDEX FUND
----------------------- ------------------------- -------------------------
SIX SIX SIX
MONTHS PERIOD MONTHS PERIOD MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
--------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 5,659,250 2,676,195 2,353,908 1,262,394 2,169,052 1,129,477
Shares issued in
reinvestment of
ordinary income
dividends and capital
gain distributions -- 30,183 -- 115,711 -- 80,998
--------- ------------ ---------- ------------ ---------- ------------
5,659,250 2,706,378 2,353,908 1,378,105 2,169,052 1,210,475
Less shares redeemed 33,209 43,444 14,653 14,861 4,238 18,027
--------- ------------ ---------- ------------ ---------- ------------
Net increase in shares
outstanding 5,626,041 2,662,934 2,339,255 1,363,244 2,164,814 1,192,448
--------- ------------ ---------- ------------ ---------- ------------
--------- ------------ ---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
STOCK & BOND
BALANCED FUND BOND FUND MONEY MARKET FUND
----------------------- ------------------------- --------------------------
SIX SIX SIX
MONTHS PERIOD MONTHS PERIOD MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
--------- ------------ ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,347,021 519,686 2,851,469 1,439,766 12,672,839 8,868,290
Shares issued in
reinvestment of
ordinary income
dividends and capital
gain distributions -- 268 101,286 66,860 533,897 588,046
--------- ------------ ---------- ------------ ----------- ------------
1,347,021 519,954 2,952,755 1,506,626 13,206,736 9,456,336
Less shares redeemed 33,388 31,253 73,347 75,763 1,708,614 774,919
--------- ------------ ---------- ------------ ----------- ------------
Net increase in shares
outstanding 1,313,633 488,701 2,879,408 1,430,863 11,498,122 8,681,417
--------- ------------ ---------- ------------ ----------- ------------
--------- ------------ ---------- ------------ ----------- ------------
</TABLE>
- ---------
62
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
PERIOD ENDED FROM INCEPTION DATE OF
JUNE 30, 1999 JANUARY 22, 1998 TO
(UNAUDITED) DECEMBER 31, 1998
-------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period $12.80 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.07 0.12
Net gain on investments (both realized
and unrealized) 1.46 2.80
----- -----
Total from investment operations 1.53 2.92
----- -----
LESS DISTRIBUTIONS
Net investment income -- (0.12)
----- -----
Total distributions -- (0.12)
----- -----
Net asset value, end of period $14.33 12.80
----- -----
----- -----
TOTAL RETURN (not annualized) 11.95% 29.26%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions) $140.3 53.3
Ratio of expenses to average net assets 0.31%(a) 0.32%(a)
Ratio of net investment income to
average net assets 1.48%(a) 1.55%(a)
Portfolio turnover rate 5%(a) 7%
</TABLE>
- ----------
(a) Determined on an annualized basis.
63-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
PERIOD ENDED FROM INCEPTION DATE OF
JUNE 30, 1999 JANUARY 29, 1998 TO
(UNAUDITED) DECEMBER 31, 1998
-------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.54 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.27
Net gain or loss on investments (both
realized and unrealized) 0.75 (0.46)
----- -----
Total from investment operations 0.80 (0.19)
----- -----
LESS DISTRIBUTIONS
Net investment income -- (0.09)
Net realized gain -- (0.18)
----- -----
Total distributions -- (0.27)
----- -----
Net asset value, end of period $10.34 9.54
----- -----
----- -----
TOTAL RETURN (not annualized) 8.39% (1.89)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions) $ 69.3 41.6
Ratio of expenses to average net assets 0.50%(a) 0.50%(a)
Ratio of expenses to average net assets,
absent of expense limitation 0.51%(a) 0.55%(a)
Ratio of net investment income to
average net assets 1.15%(a) 1.11%(a)
Portfolio turnover rate 15%(a) 38%
</TABLE>
- ----------
(a) Determined on an annualized basis.
- ---------
64
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
PERIOD ENDED FROM INCEPTION DATE OF
JUNE 30, 1999 JANUARY 22, 1998 TO
(UNAUDITED) DECEMBER 31, 1998
-------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period $11.63 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.09 0.13
Net gain on investments (both realized
and unrealized) 0.32 1.65
----- -----
Total from investment operations 0.41 1.78
----- -----
LESS DISTRIBUTIONS
Net investment income -- (0.15)
----- -----
Total distributions -- (0.15)
----- -----
Net asset value, end of period $12.04 11.63
----- -----
----- -----
TOTAL RETURN (not annualized) 3.53% 17.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions) $105.4 76.7
Ratio of expenses to average net assets 0.75%(a) 0.75%(a)
Ratio of expenses to average net assets,
absent of expense limitation 0.84%(a) 0.93%(a)
Ratio of net investment income to
average net assets 1.85%(a) 1.27%(a)
Portfolio turnover rate 3%(a) 6%
</TABLE>
- ----------
(a) Determined on an annualized basis.
65-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST STOCK & BOND BALANCED FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
PERIOD ENDED FROM INCEPTION DATE OF
JUNE 30, 1999 JANUARY 29, 1998 TO
(UNAUDITED) DECEMBER 31, 1998
-------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period $11.41 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.07 0.14
Net gain on investments (both realized
and unrealized) 0.69 1.32
----- -------
Total from investment operations 0.76 1.46
----- -------
LESS DISTRIBUTIONS
Net investment income -- (0.05)
----- -------
Total distributions -- (0.05)
----- -------
Net asset value, end of period $12.17 11.41
----- -------
----- -------
TOTAL RETURN (not annualized) 6.66% 14.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions) $ 21.9 5.6
Ratio of expenses to average net assets 0.00%(a) 0.00%(a)
Ratio of expenses to average net assets,
absent of expense limitation 0.13%(a) 1.01%(a)
Ratio of net investment income to
average net assets 1.96%(a) 3.43%(a)
Portfolio turnover rate 3%(a) 18%
</TABLE>
- ----------
(a) Determined on an annualized basis.
- ---------
66
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
PERIOD ENDED FROM INCEPTION DATE OF
JUNE 30, 1999 JANUARY 22, 1998 TO
(UNAUDITED) DECEMBER 31, 1998
-------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.15 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.25 0.49
Net gain or loss on investments (both
realized and unrealized) (0.38) 0.15
------ ------
Total from investment operations (0.13) 0.64
------ ------
LESS DISTRIBUTIONS
Net investment income (0.25) (0.49)
------ ------
Total distributions (0.25) (0.49)
------ ------
Net asset value, end of period $ 9.77 10.15
------ ------
------ ------
TOTAL RETURN (not annualized) (1.26)% 6.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions) $ 51.9 24.7
Ratio of expenses to average net assets 0.58%(a) 0.57%(a)
Ratio of net investment income to
average net assets 5.16%(a) 5.14%(a)
Portfolio turnover rate 9%(a) 26%
</TABLE>
- ----------
(a) Determined on an annualized basis.
67-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
PERIOD ENDED FROM INCEPTION DATE OF
JUNE 30, 1999 JANUARY 29, 1998 TO
(UNAUDITED) DECEMBER 31, 1998
-------------- -----------------------
<S> <C> <C>
Net asset value, beginning of period $1.00 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.02 0.05
----- -------
Total from investment operations 0.02 0.05
----- -------
LESS DISTRIBUTIONS
Net investment income (0.02) (0.05)
----- -------
Total distributions (0.02) (0.05)
----- -------
Net asset value, end of period $1.00 1.00
----- -------
----- -------
TOTAL RETURN (not annualized) 2.21% 4.76%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions) $30.2 18.7
Ratio of expenses to average net assets 0.50%(a) 0.43%(a)
Ratio of expenses to average net assets,
absent of expense limitation 0.50%(a) 0.52%(a)
Ratio of net investment income to
average net assets 4.43%(a) 5.04%(a)
</TABLE>
- ----------
(a) Determined on an annualized basis.
- ---------
68
<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>
(This page has been left blank intentionally.)
<PAGE>
INSURANCE PRODUCTS AND SERVICES WE CAN PROVIDE*
LIFE INSURANCE
Family Insurance
Mortgage Life Insurance
Estate Analysis
Life Insurance for Business Owners
Universal Life Insurance
Annuities
Final Expense
Second-to-Die
FIRE INSURANCE
Homeowners
Renters
Mobile Homes
Manufactured Homes
Business
Apartment Buildings
Condominium/Association
Church
Contractors
Rental Condominium
Commercial
Liability Umbrella Policies
Boatowners
Personal Articles Policy
RETIREMENT PLANNING
IRA (Individual Retirement Annuity)
TSA (Tax Sheltered Annuity)
Business Retirement Plans
(funded with life insurance)
HEALTH INSURANCE
Hospital Surgical
Hospital Income
Disability Income
Medicare Supplement
Long-Term Care
CAR INSURANCE
Personal Cars
Business Cars
Motorcycles
Travel Trailers
Fleets
Snowmobiles
Motorhomes
Car Finance Plan
services
* All products and services may not be available in all states.
STATE FARM INSURANCE COMPANIES
Home Offices: Bloomington, Illinois
<PAGE>
State Farm VP Management Corp.
(Underwriter & Distributor of Variable Products)
One State Farm Plaza
Bloomington, Illinois 61710-0001
FORWARDING SERVICE REQUESTED
Bulk Rate
U.S. Postage
Paid
Permit 439
Elk Grove, IL
[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
231-3602-CH
