<PAGE>
DECEMBER 31 1999 ANNUAL REPORT
STATE FARM VARIABLE PRODUCTS TRUST
[PHOTOS]
[LOGO]
STATE FARM'S VARIABLE DEFERRED ANNUITY &
STATE FARM'S VARIABLE UNIVERSAL LIFE INSURANCE
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service
-------------------------
IS ONLY A PHONE CALL AWAY
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toll free
1-888-702-2307
Contact your local State Farm Agent or
call our Variable Products Administration
Department TOLL FREE, at 1-888-702-2307.
Unit prices are available to you
24 HOURS A DAY, 7 DAYS A WEEK.
Operations Specialist available 7 a.m. - 7 p.m.
Central Time Monday through Friday.
By providing telephone authorization, and having
your Personal Identification Number (PIN), you can:
OBTAIN ACCOUNT VALUES (24 HRS A DAY)
OBTAIN ANSWERS SPECIFIC TO YOUR POLICY
TRANSFER ASSETS AMONG FUNDS
CHANGE YOUR PREMIUM ALLOCATION
CHANGE YOUR PIN
CHANGE YOUR EXISTING DOLLAR COST AVERAGING
CHANGE YOUR EXISTING PORTFOLIO REBALANCING
REQUEST A POLICY WITHDRAWAL
REQUEST A POLICY LOAN
(VARIABLE UNIVERSAL LIFE ONLY)
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Not |
FDIC | * No Bank Guarantee
Insured | * May Lose Value
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Visit our homepage www.statefarm.com
<PAGE>
Annual Report
Message from Roger Tompkins
The State Farm life insurance companies experienced their best year ever,
meeting a benchmark only a handful of other companies have ever achieved -- 1
million applications received in a single year. In recognition of that
achievement, and as a way to say thank you to our customers for supporting us,
State Farm donated $1 million to the American Red Cross and $100,000 to the
Canadian Red Cross.
[PHOTO]
Nearly half of the new premium written in 1999 came from our variable life
products, the Variable Deferred Annuity and Variable Universal Life insurance.
This shows the confidence that people have placed in the State Farm life
insurance companies' ability to keep our promises to our customers, both to help
them prepare for the future and to ease the burdens of those left behind.
That's why we are so careful to maintain the highest ratings for financial
strength and claims-paying ability -- ratings we received again this year from
five major rating agencies like Moody's, Standard & Poor's and A.M. Best. These
ratings tell you we have the financial strength to provide the benefits promised
in every single policy -- to keep our promise to you. The ratings apply to our
traditional products and to the Fixed Account of the variable products, but do
not apply to the Variable Account of the variable products. Please remember,
that the value of an allocation to one of the variable Subaccounts' underlying
investment options is not guaranteed and will fluctuate based upon the
investment performance and value of the underlying investment option chosen.
This is the annual report of the Funds underlying 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 your family.
Thank you for the confidence you've shown in the State Farm life insurance
companies. We promise to provide high quality service and products, backed by
prudently managed investment portfolios, and Companies you can depend on.
Sincerely,
/s/ Roger Tompkins
Executive Vice President
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)
Table of Contents
<TABLE>
<S> <C>
The Economy and Markets 3
Portfolio of Investments
Large Cap Equity Index Fund 9
Small Cap Equity Index Fund 15
International Equity Index
Fund 33
Stock & Bond Balanced Fund 46
Bond Fund 47
Money Market Fund 50
Financial Statements
Statement of Assets and
Liabilities 52
Statement of Operations 54
Statement of Changes in Net
Assets 56
Notes to Financial Statements 58
Financial Highlights 62
Report of Independent Auditors 68
Notice of Withholding Election
</TABLE>
This report must be accompanied or preceded by a prospectus.
1 -------
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Message to Variable Product Customers
[PHOTO]
Investments in common stocks provided investors very good returns in 1999.
Common stock prices rose around the world in reaction to continued economic
strength in the United States and recoveries or further improvements in most
economies of Europe and Asia. Prospects for growth of corporate profits, which
is arguably the most important element for rising stock prices, are obviously
enhanced as general economic conditions get better.
Bond investments did not fare as well as stocks over the past twelve months. The
strong general economic conditions, which supported stock prices, can probably
also be blamed for the difficult year experienced by bondholders. Interest rates
rose across the developed world since demands for borrowed capital increased
with the pickup of economic activity. In the United States, investors required
higher interest rates as they became concerned about upticks in inflation and
rising current account deficits with other countries. The current account
deficits result from our imports of goods and services exceeding exports -- a
condition produced primarily by economic growth occurring at a more rapid pace
in the United States than elsewhere in the world. When interest rates rise,
prices of bonds fall. Prices of domestic bonds declined by an amount which
exceeded their interest income in 1999 except for issues with short maturities.
Consequently, total returns on most U.S. bond portfolios tended to be negative
for the year.
The contrasting results experienced by investments in stocks and bonds during
the year serve as a reminder that one of the foremost challenges faced by any
investor is development of a long-term investment program which makes one
comfortable regardless of the short-term direction markets might take. Although
a profit cannot be assured, you can probably best cope with the variability of
returns from various segments of financial markets by viewing your investments
in the State Farm Variable Product Funds as long-term commitments. Your State
Farm registered representative can help you select the Fund or Funds which match
your long-term investment objectives and tolerance for risk. We encourage you to
be patient with your investments and to be prepared to ride out market
fluctuations, large and small in both directions, which will inevitably occur.
This long-term approach is particularly appropriate since variable products
involve additional fees and charges which are described in the Prospectus.
I have included discussions of the U.S. Economy, U.S. Equity Market, U.S. Bond
Market, International Economies and Markets which follow on pages 3 and 4.
/s/ Kurt G. Moser
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2
<PAGE>
The U.S. Economy
The U.S. economy, led by consumer spending, ended 1999 on a very strong note.
With unemployment at the lowest levels in three decades, people have jobs, money
and confidence. Rising prices for homes and common stocks provide households
further support for their general sense of economic well-being. Consequently,
consumers are very comfortable spending money on a variety of goods and
services.
For the full 1999 year, real GDP growth was 4%. Our domestic economy has now
expanded at a rate of 4% or more for three years in a row. It has been a little
over 20 years since we have experienced growth at this pace for three
consecutive years.
The present economic expansion is almost nine years old and will soon become the
longest one in U.S. history. Remarkably, as the chart below displays, inflation
has been moderate during this economic cycle. Inflation has been restrained by
high levels of productivity, and there has been ample capacity to support the
rapid economic growth. The pace of inflation did pick up somewhat in 1999.
Future developments on the inflation front will likely significantly impact
actions of economic policymakers and movements in financial markets over the
upcoming year.
Economic Growth and Inflation
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ECONOMIC GROWTH INFLATION
<S> <C> <C>
1990 1.7% 6.1%
1991 -0.2% 3.1%
1992 3.3% 2.9%
1993 2.4% 2.7%
1994 4.0% 2.7%
1995 2.7% 2.5%
1996 3.7% 3.3%
1997 4.5% 1.7%
1998 4.3% 1.6%
1999 4.0% 2.7%
</TABLE>
Economic growth is represented by the percentage change in Real Gross Domestic
product. Percentage change in the Consumer Price Index-Urban is used for
inflation.
The U.S. Equity Market
The U.S. stock market again provided very favorable results in 1999. The S&P
500-Registered Trademark- Index produced a total return of 21.0% over the past
year. This is the fifth consecutive year that the S&P 500-Registered Trademark-
has shown annual returns above 20%. Despite the five-year run, we continue to
feel that returns of this magnitude are not sustainable over long periods of
time. As support of this observation, we point out that large company common
stocks have generated average annual returns of around 11% since 1925.
Small company stocks, as measured by the Russell 2000-Registered Trademark-
Index, outperformed somewhat the equities of larger companies for the first time
in five years. The return of the Russell 2000-Registered Trademark- in 1999
amounted to 21.3%. It is encouraging to see solid equity returns occurring
outside the large-capitalization growth stock sector. However, what appears to
be fairly substantial speculation in the stocks of companies somehow involved
with the Internet is bothersome.
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The U.S. Bond Market
Bond prices fell as interest rates rose throughout 1999. Yields on good quality
bonds have risen about 175 basis points (a basis point is .01%) over the last
twelve months. Declines in bond prices generally exceeded the interest income
earned by bonds for the year except for issues with short maturities.
The Open Market Committee of the Federal Reserve Board followed the direction of
bond markets and raised short-term interest rates by 75 basis points in three
separate actions during the second half of the year. The central bank and
investors seem to believe that since the U.S. economy has been growing at a
rapid pace for some time now, interest rates need to rise so that the economy
will slow before further significant inflation develops.
The Lehman Brothers Government/Corporate Intermediate Term Index, which is
considered representative of the market for high-quality intermediate-term bonds
produced a total return of only 0.39% in 1999.
International Economies and Markets
Business conditions appear to be generally favorable around the world at the
moment. Economic activity is reasonably firm in Europe. Japan and the rest of
Asia along with Latin America look to be recovering slowly after slumping
severely in 1998.
The EAFE-Registered Trademark- Free Index is a broad stock market index that
encompasses markets throughout the developed free world. The Index achieved a
26.7% return in U.S. dollar terms in 1999. The highest returns were generally
earned in Japanese and other Asian or Pacific markets. The
EAFE-Registered Trademark- Free Index does not include stock markets of
countries with so-called emerging economies. The emerging markets also
experienced high stock returns in 1999.
Interest rates generally rose throughout the developed world over the course of
1999. However bond yields declined from very high levels in the emerging markets
as some element of investor confidence was restored while emerging economies
recovered somewhat.
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4
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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.
For the year ended December 31, 1999, the Fund benefited from the rise in prices
of a narrow group of stocks, mainly technology and telecommunication companies
that are included in the S&P 500-Registered Trademark- Index. Substantially all
of the return of the Fund in 1999 can be attributed to 20 stocks. See the
previous section on the U.S. Economy and U.S. Equity Market. Financial
Highlights on page 62.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
FOR THE PERIOD ENDED DECEMBER 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP EQUITY INDEX S&P 500
FUND INDEX*
<S> <C> <C> <C>
01/22/98 $10,000.00 $10,000.00
12/31/99 $15,558.02 $15,673.72
Fund's average annual total return
since inception 25.59%
1 Year return 20.36%
</TABLE>
*The S&P 500-Registered Trademark- Index tracks the common stock performance of
large U.S. companies in the manufacturing, utilities, transportation, and
financial industries. It also tracks the performance of common stocks issued by
foreign and smaller U.S. companies in similar industries. In total, the S&P
500-Registered Trademark- is comprised of 500 common stocks. Unlike an
investment in the Large Cap Equity Index Fund, a theoretical investment in the
Index does not reflect any expenses.
Small Cap Equity Index Fund
The Small Cap Equity Index Fund seeks to match the return of the Russell
2000-Registered Trademark-Index(2), which includes 2000 companies with average
market capitalization of $526 million. This index was created by the Frank
Russell Trust Company to give investors an idea of how the stocks of the 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.
Returns of the Fund were quite rewarding in 1999 as general prices of small
company stocks kept pace with equities of larger companies for the first time in
the last five years. See the previous section on the U.S. Economy and U.S.
Equity Market. Financial Highlights on page 63.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
FOR THE PERIOD ENDED DECEMBER 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SMALL CAP EQUITY INDEX RUSSELL 2000
FUND INDEX*
<S> <C> <C> <C>
1/29/1998 $10,000.00 $10,000.00
12/31/1999 $11,795.77 $11,952.88
Fund's average annual total return
since inception 8.98%
1 Year return 20.24%
</TABLE>
*The Russell 2000-Registered Trademark- Index tracks the common stock
performance of the 2,000 smallest U.S. companies in the Russell
3000-Registered Trademark- Index, which represents approximately 10% of the
total capitalization of the Russell 3000 Index. Unlike an investment in the
Small Cap Equity Index Fund, a theoretical investment in the Index does not
reflect any expenses.
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Past performance is not predictive of future performance. Investment return and
principal value will fluctuate so that your account value may be worth more or
less than the premiums you paid.
(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-Registered Trademark- Index, see the SAI.)
5 -------
<PAGE>
International Equity Index Fund
The benchmark index used by the International Equity Index Fund is the Morgan
Stanley EAFE-Registered Trademark- Free Index(1), 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 December 31, 1999, the countries with
the highest weights were Japan, which accounted for 27.4% of the Index, the
United Kingdom at 19.2%, Germany at 10.5%, and France which represented 10.3%.
The Fund's favorable results in 1999 are primarily attributable to very strong
stock markets in Japan, the Far East, France and the Nordic countries. See the
previous section on International Economies and Markets. Financial Highlights on
page 64.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
FOR THE PERIOD ENDED DECEMBER 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INDEX EAFE FREE
FUND INDEX*
<S> <C> <C> <C>
1/22/1998 $10,000.00 $10,000.00
12/31/1999 $14,880.00 $14,902.27
Fund's average annual total return
since inception 22.74%
1 Year return 26.21%
</TABLE>
*The Morgan Stanley Capital International Europe, Australia and Far East Free
(EAFE-Registered Trademark- Free) Index currently measures the performance of
stock markets of Europe, Australia, New Zealand, and the Far East and takes into
account local market restrictions on share ownership by foreigners.
EAFE-Registered Trademark- Free is meant to reflect actual opportunities for
foreign investors in a local market. Unlike an investment in the International
Equity Index Fund, a theoretical investment in the Index does not reflect any
expenses.
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 returns 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.
Interest rates rose substantially over the last 12 months causing bond prices to
fall. The decline in value of its bond investments plus expenses of the Bond
Fund exceeded interest income of the Fund. Consequently, a slight negative total
return was experienced by the Fund in 1999. See the previous section on the U.S.
Bond Market. Financial Highlights on page 66.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
FOR THE PERIOD ENDED DECEMBER 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS GOVT/CORP INTERMEDIATE
BOND FUND INDEX*
<S> <C> <C> <C>
01/22/98 $10,000.00 $10,000.00
12/31/99 $10,588.19 $10,755.78
Fund's average annual total return
since inception 2.99%
1 Year return -0.57%
</TABLE>
*The Lehman Brothers Government/Corporate Intermediate Index contains
approximately 4,700 U.S. Government and corporate bonds maturing within one to
ten years and an outstanding par value of at least $100 million.
The Lehman Brothers Government/Corporate Intermediate Index represents an
unmanaged group of bonds that differ from the composition of the Bond Fund.
Unlike an investment in the Bond Fund, a theoretical investment in the Index
does not reflect any expenses.
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Past performance is not predictive of future performance. Investment return and
principal value will fluctuate so that your account value may be worth more or
less than the premiums you paid.
(1) 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.)
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6
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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 December 31, 1999, about 63% of the Stock and Bond Balanced Fund assets
were invested in the Large Cap Equity Index Fund and 37% in the Bond Fund, in
line with the Fund's stated objectives.
Favorable returns earned by the Fund's investment in the Large Cap Equity Index
Fund were offset significantly by weak results of the Bond Fund in 1999. See the
previous section on the U.S. Economy, U.S. Equity Market, and the U.S. Bond
Market. Financial Highlights on page 65.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
FOR THE PERIOD ENDED DECEMBER 31, 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
STOCK AND BOND S&P 500 GOVT/CORP INTERMEDIATE
BALANCED FUND INDEX* INDEX*
<S> <C> <C> <C>
01/22/98 $10,000.00 $10,000.00 $10,000.00
12/31/99 $12,828.21 $15,796.70 $10,759.50
Fund's average annual total return
since inception 13.85%
1 Year return 11.88%
</TABLE>
*See footnotes for the Large Cap Fund and the Bond Fund on pages 5 and 6 for
description of indices.
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 67.
-------------------------------------------------------
You can only invest in our underlying funds through the purchase of a Variable
Universal Life Insurance policy or Variable Deferred Annuity policy, which
include:
<TABLE>
<S> <C>
Variable Deferred
State Farm Life Insurance Company: Annuity
(Not licensed in New York or Variable Universal Life
Wisconsin) Insurance
State Farm Life and Accident Variable Deferred
Assurance Company: Annuity
Variable Universal Life
(Licensed in New York and Wisconsin) Insurance
</TABLE>
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 and State Farm Life and Accident Assurance Company, Variable Life
Separate Accounts or Variable Annuity Separate Accounts (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 account value may be worth more or
less than the premiums you paid.
7 -------
<PAGE>
TOTAL RETURNS
State Farm Life Insurance Company
(Not Licensed in New York or Wisconsin)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
State Farm Life Insurance Company State Farm Life Insurance Company
Variable Deferred Annuity Variable Universal Life Insurance
Total Returns(1) Total Returns(1)
Total Returns
Since Inception Total Returns
Total Returns (Annualized) Since
1 Year (ending (ending Total Returns Inception
December 31, 1999) December 31, 1999) 1 Year (Annualized)
with without with without (ending (ending
surrender surrender surrender surrender December 31, December 31,
FUND charges charges charges charges FUND 1999) 1999)
<S> <C> <C> <C> <C> <C> <C> <C>
Large Cap Equity Index
Fund* 11.66% 18.51% 20.17% 23.92% Large Cap Equity Index Fund* 10.80% 18.87%
Small Cap Equity Index Small Cap Equity Index
Fund** 11.55% 18.39% 4.14% 7.48% Fund** 10.60% 2.51%
International Equity International Equity Index
Index Fund* 17.13% 24.28% 17.40% 21.09% Fund* 16.14% 15.96%
Stock and Bond Balanced Stock and Bond Balanced
Fund** 3.73% 10.12% 8.89% 12.33% Fund** 2.94% 7.40%
Bond Fund* -7.88% -2.15% -1.48% 1.61% Bond Fund* -8.57% -2.93%
(1)The State Farm Variable Universal Life Insurance product
total returns reflect all contract-level and underlying
fund fees and expenses, except for surrender charges and
the cost of insurance. If the cost of insurance were
reflected, the performance quoted would be significantly
lower than shown. Please refer to the hypothetical
illustrations in the State Farm Variable Universal Life
Insurance prospectus to see how the cost of insurance can
impact performance. We encourage you to obtain a
personalized illustration of historical performance that
(1)The State Farm Variable Deferred Annuity product total returns
reflect all contract-level and underlying fund fees and expenses, reflects the cost of insurance. The fees and expenses
including the imposition of a maximum surrender charge which is 7% reflected in this calculation are based on an assumed
in year 1, and declines by 1% each subsequent year. The fees and average account size of $3100. The total return period
expenses are based on an assumed average account size of $6700.
The since inception total return period begins on the Fund
inception date (as noted) and ends December 31, 1999. The 1-year
total return period begins one year prior to the indicated ending since inception begins on the Fund Inception date (as
date. These total returns apply only to the State Farm Life noted) and ends December 31, 1999. These total returns
apply only to the State Farm Life Insurance Company
Insurance Company product.
(*)Inception Date: January 22, 1998
(**)Inception Date: January 29, 1998
product.
(*)Inception Date: January 22, 1998
(**)Inception Date: January 29, 1998
</TABLE>
State Farm Life and Accident Assurance Company
(Licensed in New York and Wisconsin)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
State Farm Life and Accident Assurance Company State Farm Life and Accident Assurance Company
Variable Deferred Annuity Variable Universal Life Insurance
Total Returns(1) Total Returns(1)
Total Returns
Since Inception Total Returns
Total Returns (Annualized) Since
1 Year (ending (ending Total Returns Inception
December 31, 1999) December 31, 1999) 1 Year (Annualized)
with without with without (ending (ending
surrender surrender surrender surrender December 31, December 31,
FUND charges charges charges charges FUND 1999) 1999)
Large Cap Equity Index
Fund 11.49% 18.42% 16.39% 21.48% Large Cap Equity Index Fund 9.56% 13.84%
Small Cap Equity Index
Fund 11.38% 18.30% 9.68% 14.53% Small Cap Equity Index Fund 9.30% 14.64%
International Equity International Equity Index
Index Fund 16.95% 24.20% 14.64% 19.70% Fund 14.81% 19.79%
Stock and Bond Balanced
Fund 3.56% 10.04% 8.85% 13.63% Stock and Bond Balanced Fund 1.75% 4.15%
Bond Fund -8.06% -2.24% -3.11% -1.18% Bond Fund -9.68% -9.59%
(1)The State Farm Variable Universal Life Insurance product
total returns reflect all contract-level and underlying
fund fees and expenses, except for surrender charges and
the cost of insurance. If the cost of insurance were
reflected, the performance quoted would be significantly
lower than shown. Please refer to the hypothetical
illustrations in the State Farm Variable Universal Life
Insurance prospectus to see how the cost of insurance can
impact performance. We encourage you to obtain a
personalized illustration of historical performance that
reflects the cost of insurance. The fees and expenses
(1)The State Farm Variable Deferred Annuity product total returns reflected in this calculation are based on an assumed
reflect all contract-level and underlying fund fees and expenses, average account size of $2100. The total return period
including the imposition of a maximum surrender charge which is 7%
in year 1, and declines by 1% each subsequent year. The fees and
expenses are based on an assumed average account size of $5600.
The since inception total return period begins on the contract since inception begins on the contract registration
effective registration date of August 3, 1998, and ends effective date of December 2, 1998, and ends December 31,
December 31, 1999. The 1-year total return period begins one year 1999. These total returns apply only to the State Farm
prior to the indicated ending date. These total returns apply only
to the State Farm Life and Accident Assurance Company product.
Life and Accident Assurance Company product and not to
the State Farm Life Insurance Company product.
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate so that your account value may be worth more or
less than the premiums you paid.
- ---------
8
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (94.3%)
Aerospace/Defense (.5%)
16,304 Boeing Co. $ 677,635
3,307 General Dynamics Corp. 174,444
6,948 Lockheed Martin Corp. 151,988
1,169 Northrop Grumman Corp. 63,199
------------
1,067,266
------------
Agriculture, Foods, & Beverage (3.3%)
631 Adolph Coors Co. Class B 33,127
8,111 Anheuser Busch Companies Inc. 574,867
10,888 Archer-Daniels-Midland Company 132,698
4,857 Bestfoods 255,296
1,173 Brown-Forman Corp. Class B 67,154
7,552 Campbell Soup Company 292,168
7,409 Coca-Cola Enterprises Inc. 149,106
8,552 ConAgra Inc. 192,955
5,301 General Mills Inc. 189,511
2,440 Hershey Foods Corp. 115,900
6,236 HJ Heinz Co. 248,271
7,071 Kellogg Company 217,875
5,703 Nabisco Group Holding Group Corp. 60,594
25,348 Pepsico Inc. 893,517
2,346 Quaker Oats Co. 153,956
5,649 Ralston Purina Co. 157,466
15,702 Sara Lee Corporation 346,425
7,531 Seagram Ltd. 338,424
2,140 Supervalu Inc. 42,800
5,772 Sysco Corporation 228,355
42,758 The Coca-Cola Company 2,490,653
2,013 WM Wrigley Jr. Co. 166,953
------------
7,348,071
------------
Airlines (.2%)
2,632 AMR Corp. (a) 176,344
2,453 Delta Air Lines Inc. 122,190
8,807 Southwest Airlines Co. 142,563
1,293 US Airways Group Inc. (a) 41,457
------------
482,554
------------
Automotive (1.1%)
1,378 Cooper Tire & Rubber Co. 21,445
2,853 Dana Corp. 85,412
9,926 Delphi Automotive Systems (a) 156,334
20,965 Ford Motor Company 1,120,317
11,148 General Motors Corp. 810,320
3,080 Genuine Parts Co. 76,423
2,703 Goodyear Tire & Rubber Co. 76,191
1,572 ITT Industries Inc. 52,564
1,097 Navistar International Corp. (a) 51,970
1,312 Paccar Inc. 58,138
------------
2,509,114
------------
Banks (4.2%)
6,260 AmSouth Bancorporation 120,896
29,617 Bank of America Corporation 1,486,403
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
12,763 Bank of New York Inc. $ 510,520
20,029 Bank One Corporation 642,180
5,521 BB&T Corp. 151,137
14,331 Chase Manhattan Corp. 1,113,340
2,736 Comerica Inc. 127,737
5,095 Fifth Third Bancorp 373,846
17,110 Firstar Corp. 361,449
2,868 Golden West Financial Corporation 96,078
4,041 Huntington Bancshares Inc. 96,479
3,028 JP Morgan & Co. Incorporated 383,421
7,837 Keycorp 173,394
3,855 Northern Trust Corporation 204,315
5,238 PNC Bank Corporation 233,091
2,456 Providian Financial Corp. 223,649
1,841 Republic New York Corp. 132,552
2,913 Southtrust Corporation 110,148
2,813 State Street Corp. 205,525
3,001 Summit Bancorp 91,906
5,587 SunTrust Banks Inc. 384,455
4,746 Synovus Financial Corp. 94,327
2,524 Union Planters Corp. 99,540
12,740 US Bancorp 303,371
3,516 Wachovia Corporation 239,088
10,074 Washington Mutual Inc. 261,924
28,529 Wells Fargo & Company 1,153,641
------------
9,374,412
------------
Building Materials & Construction (.2%)
681 Armstrong World Industries 22,728
1,101 Centex Corp. 27,181
599 Fleetwood Enterprises Inc. 12,354
1,324 Fluor Corp. 60,739
766 Foster Wheeler Corp. 6,798
882 Kaufman & Broad Home Corp. 21,333
2,709 Leggett & Platt Inc. (a) 58,074
7,265 Masco Corp. 184,349
1,064 McDermott International Inc. 9,642
1,000 Owens Corning 19,313
801 Pulte Corp. 18,022
1,595 Stanley Works 48,049
1,771 Vulcan Materials Company 70,729
------------
559,311
------------
Chemicals (1.4%)
4,033 Air Products & Chemicals Inc. 135,358
1,653 BF Goodrich Co. 45,457
1,370 Eastman Chemical Co. 65,332
18,046 EI du Pont de Nemours and Company 1,188,780
2,275 Engelhard Corp. 42,941
535 FMC Corp. (a) 30,662
968 Great Lakes Chemical Corporation 36,966
1,788 Hercules Inc. 49,841
1,838 International Flavors & Fragrances Inc. 69,384
10,998 Monsanto Co. 391,804
3,025 PPG Industries Inc. 189,252
2,734 Praxair Inc. 137,554
3,791 Rohm & Haas Co. 154,246
</TABLE>
9 -------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
1,773 Sigma-Aldrich Corporation $ 53,301
3,813 The Dow Chemical Company 509,512
2,306 Union Carbide Corp. 153,925
1,294 WR Grace & Co. (a) 17,954
------------
3,272,269
------------
Commercial Service/Supply (1.0%)
2,607 Allied Waste Industries Inc. (a) 22,974
12,564 Cendant Corp. (a) 333,731
1,397 Deluxe Corp. 38,330
2,865 Dun and Bradstreet Corp. 84,517
5,502 Eastman Kodak Co. 364,507
1,687 H&R Block Inc. 73,806
4,908 Interpublic Group of Companies Inc. 283,130
726 Milacron Inc. 11,162
4,660 Pitney Bowes Inc. 225,136
843 Polaroid Corp. 15,859
1,306 Quintinles Transnational (a) 24,406
2,316 RR Donnelley & Sons Company 57,466
4,852 Service Corp. International 33,661
8,157 Staples Inc. (a) 169,258
10,753 Waste Management Inc. 184,817
1,647 WW Grainger Inc. 78,747
11,558 Xerox Corporation 262,222
------------
2,263,729
------------
Computer Software and Services (8.7%)
2,118 Adobe Systems Inc. 142,435
38,371 America Online Inc. (a) 2,894,612
1,052 AutoDesk Inc. 35,505
10,736 Automatic Data Processing Inc. 578,402
2,543 Ceridian Corp. (a) 54,833
9,325 Computer Associates International Inc. 652,167
2,749 Computer Sciences Corp. (a) 260,124
6,221 Compuware Corp. (a) 231,732
8,236 Electronic Data Systems Corporation 551,297
7,381 First Data Corp. 363,976
88,942 Microsoft Corporation (a) 10,383,979
5,902 Novell Inc. (a) 234,973
24,664 Oracle Corporation (a) 2,763,910
4,709 Parametric Technology Corp. (a) 127,437
4,215 PeopleSoft Inc. (a) 89,832
446 Shared Medical Systems Corp. 22,718
5,059 Unisys Corp. (a) 161,572
------------
19,549,504
------------
Computers (6.1%)
6,095 3Com Corp. (a) 286,465
2,801 Apple Computer Inc. (a) 287,978
3,032 Cabletron Systems Inc. (a) 78,832
29,475 Compaq Computer Corporation 797,667
44,007 Dell Computer Corp. (a) 2,244,357
17,557 EMC Corp. (a) 1,918,102
5,425 Gateway Inc. (a) 390,939
17,547 Hewlett-Packard Company 1,999,261
2,695 Ikon Office Solutions Inc. 18,360
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
31,191 International Business Machines
Corporation $ 3,368,628
3,640 Seagate Technology (a) 169,488
3,321 Silicon Graphics Inc. (a) 32,587
26,814 Sun Microsystems Inc. (a) 2,076,409
------------
13,669,073
------------
Consumer & Marketing (3.9%)
1,022 Alberto-Culver Company 26,380
1,178 American Greetings Corp. Class A 27,830
4,398 Avon Products Inc. 145,134
513 Ball Corp. 20,199
3,522 Best Buy Inc. (a) 176,760
1,525 Black & Decker Corp. 79,681
1,630 Brunswick Corp. 36,268
4,117 Clorox Co. 207,394
10,111 Colgate-Palmolive Company 657,215
2,418 Danaher Corp. 116,669
2,365 Darden Restaurants Inc. 42,866
2,303 Ecolab Inc. 90,105
3,866 Fort James Corp. 105,832
2,954 Fortune Brands Inc. 97,667
3,399 Hasbro Inc. 64,793
585 Jostens Inc. 14,223
9,239 Kimberly Clark Corp. 602,845
7,296 Mattel Inc. 95,760
1,552 Maytag Corp. 74,496
23,475 McDonald's Corporation 946,336
4,920 Newell Rubbermaid Inc. 142,680
41,153 Philip Morris Companies Inc. 954,235
609 Russell Corp. 10,201
1,123 Snap-On Inc. 29,830
18,686 The Gillette Company 769,630
22,754 The Procter & Gamble Company 2,492,985
2,713 Tricon Global Restaurants (a) 104,790
1,052 Tupperware Corp. 17,818
9,915 Unilever NV 539,748
3,071 UST Inc. 77,351
2,164 Wendy's International Inc. 44,633
1,293 Whirlpool Corp. 84,126
------------
8,896,480
------------
Containers & Packaging (.1%)
968 Bemis Company Inc. 33,759
2,129 Crown Cork & Seal Inc. 47,636
2,790 Owens-Illinois Inc. (a) 69,924
1,455 Sealed Air Corporation (a) 75,387
939 Temple-Inland Inc. 61,915
------------
288,621
------------
Electronic/Electrical Mfg. (7.7%)
2,598 Advanced Micro Devices Inc. (a) 75,180
6,486 Applied Materials Inc. (a) 821,695
7,551 Emerson Electric Co. 433,239
56,711 General Electric Company 8,776,027
57,447 Intel Corporation 4,728,606
1,493 KLA Tencor Corporation (a) 166,283
</TABLE>
- ---------
10
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
2,465 LSI Logic Corp. (a) $ 166,388
4,384 Micron Technology Inc. (a) 340,856
2,939 National Semiconductor Corp. (a) 125,826
826 PerkinElmer Inc. 34,434
5,904 Raytheon Co. 156,825
3,336 Rockwell International Corp. 159,711
13,650 Texas Instruments Inc. 1,322,344
965 Thomas & Betts Corp. 30,759
------------
17,338,173
------------
Financial Services (5.8%)
7,778 American Express Company 1,293,093
12,652 Associates First Capital Corp. 347,139
2,111 Bear Stearns Companies Inc. 90,245
3,451 Capital One Financial Corp. 166,295
14,188 Charles Schwab Corp. 544,465
58,358 Citigroup Inc. 3,242,516
1,960 Countrywide Credit Industries Inc. 49,490
2,542 Equifax Inc. 59,896
12,060 Federal Home Loan Mortgage 567,574
17,758 Federal National Mortgage Association 1,108,765
16,592 First Union Corp. 544,425
15,996 FleetBoston Financial Corp. 556,861
4,411 Franklin Resources Inc. 141,428
8,291 Household International Inc. 308,840
2,090 Lehman Brothers Holding Inc. 176,997
1,730 MBIA Inc. 91,366
13,934 MBNA Corporation 379,702
8,946 Mellon Financial Corporation 304,723
6,416 Merrill Lynch & Company Inc. 535,736
1,907 MGIC Investment Corp. 114,778
9,677 Morgan Stanley Dean Witter & Co. 1,381,392
10,763 National City Corp. 254,949
1,610 Old Kent Financial Corp. (a) 56,954
2,573 Paine Webber Group Inc. (a) 99,865
4,295 Paychex Inc. 171,800
3,869 Regions Financial Corp. 97,209
2,835 SLM Holding Corp. 119,779
1,652 T. Rowe Price Associates (a) 61,021
4,105 UNUMProvident (a) 131,617
------------
12,998,920
------------
Forest Products (.6%)
932 Boise Cascade Corp. 37,746
1,674 Champion International Corp. 103,683
3,006 Georgia Pacific Corp. 152,555
7,174 International Paper Co. 404,883
1,916 Louisiana-Pacific Corp. 27,303
1,803 Mead Corporation 78,318
488 Potlatch Corp. 21,777
1,773 Westvaco Corp. 57,844
3,912 Weyerhaeuser Co. 280,931
1,925 Willamette Industries Inc. 89,392
------------
1,254,432
------------
Health Care (8.7%)
26,374 Abbott Laboratories 957,706
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
2,246 Allergan Inc. $ 111,739
1,748 Alza Corporation (a) 60,525
22,645 American Home Products Corp. 893,062
17,683 Amgen Inc. (a) 1,062,085
1,015 Baush & Lomb Inc. 69,464
5,064 Baxter International Inc. 318,083
4,407 Becton Dickinson & Co. 117,887
1,947 Biomet Inc. 77,880
7,014 Boston Scientific Corporation (a) 153,431
34,358 Bristol-Myers Squibb 2,205,354
4,751 Cardinal Health Inc. 227,454
9,820 Columbia/HCA Healthcare Corp. 287,849
879 CR Bard Inc. 46,587
18,933 Eli Lilly & Co. 1,259,045
5,257 Guidant Corp. 247,079
7,304 Healthsouth Corp. (a) 39,259
2,977 Humana Inc. (a) 24,374
5,509 IMS Health Inc. 149,776
23,798 Johnson & Johnson 2,216,189
1,306 Mallinckrodt Inc. 41,547
1,929 Manor Care Inc. (a) 30,864
4,867 McKesson HBOC Inc. 109,812
20,348 Medtronic Inc. 741,430
40,469 Merck & Co. Inc. 2,713,952
1,706 PE Corp. (a) 205,253
67,056 Pfizer Inc. 2,175,129
8,797 Pharmacia & Upjohn Inc. 395,865
25,442 Schering Plough Corp. 1,073,334
1,490 St. Jude Medical Inc. (a) 45,724
5,460 Tenet Healthcare Corp. (a) 128,310
3,036 United Healthcare Corp. 161,288
14,810 Warner-Lambert Co. 1,213,494
1,709 Watson Pharmaceuticals Inc. (a) 61,204
1,168 Wellpoint Health Network Inc. (a) 77,015
------------
19,699,049
------------
Insurance (2.7%)
2,461 Aetna Inc. 137,355
4,632 AFLAC Inc. (a) 218,573
13,870 Allstate Corp. 332,880
4,336 American General Corporation 328,994
26,806 American International Group Inc. 2,898,399
4,477 Aon Corp. 179,080
2,899 Chubb Executive Risk 163,250
3,225 Cigna Corp. 259,814
2,863 Cincinnati Financial Corp. 89,290
5,729 Conseco Inc. 102,406
1,837 Jefferson-Pilot Corp. 125,375
3,488 Lincoln National Corp. 139,520
1,888 Loews Corp. 114,578
4,592 Marsh & McLennan Companies Inc. 439,397
1,247 Progressive Corp. 91,187
2,348 Safeco Corp. 58,407
3,976 St. Paul Companies Inc. 133,942
3,957 The Hartford Financial Services Group
Inc. 187,463
2,351 Torchmark Corp. 68,326
------------
6,068,236
------------
</TABLE>
11-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
Lodging & Gaming (.1%)
2,247 Harrahs Entertainment Inc. (a) $ 59,405
4,692 Hilton Hotels Corp. 45,161
4,357 Marriott International Class A 137,518
3,563 Mirage Resorts Inc. (a) 54,558
------------
296,642
------------
Machinery & Manufacturing (2.7%)
1,995 Avery Dennison Corp. 145,386
406 Briggs & Stratton Corp. 21,772
6,180 Caterpillar Inc. 290,846
10,908 Conoco Inc. Class B (a) 271,337
1,633 Cooper Industries Inc. 66,034
4,254 Corning Incorporated 548,500
1,223 Crane Co. 24,307
702 Cummins Engine Company Inc. 33,915
4,078 Deere & Company 176,883
3,638 Dover Corp. 165,074
1,224 Eaton Corp. 88,893
13,685 Honeywell International Inc. 789,453
4,977 Illinois Tool Works Inc. 336,259
2,838 Ingersoll Rand Co. 156,267
1,479 Johnson Controls Inc. 84,118
718 Millipore Corp. 27,733
6,988 Minnesota Mining & Manufacturing Co. 683,951
123 Nacco Industries Inc. 6,834
699 National Service Industries Inc. 20,621
3,041 Pactiv Corp (a) 32,311
2,213 Pall Corporation 47,718
1,893 Parker Hannifin Corp. 97,135
2,617 Textron Inc. 200,691
2,848 Thermo Electron Corp. (a) 42,720
1,116 Timken Co. 22,808
2,092 TRW Inc. 108,653
29,010 Tyco International Ltd. 1,127,764
8,357 United Technologies Corp. 543,205
------------
6,161,188
------------
Media & Broadcasting (3.1%)
13,219 CBS Corp. (a) 845,190
5,836 Clear Channel Communications (a) 520,863
12,991 Comcast Corp. Class A 652,798
1,596 Dow Jones & Company Inc. 108,528
4,858 Gannett Company Inc. 396,231
1,377 Knight-Ridder Inc. 81,932
3,432 McGraw Hill Companies Inc. 211,497
936 Meredith Corp. 39,020
3,048 New York Times Co. 149,733
3,055 Omnicom Group Inc. 305,500
35,749 The Walt Disney Company 1,045,658
22,323 Time Warner Inc. 1,617,022
1,053 Times Mirror Co. 70,551
4,120 Tribune Co. 226,858
12,087 Viacom Inc. (a) 730,508
------------
7,001,889
------------
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
Mining & Metals (.6%)
3,969 Alcan Aluminium Ltd. $ 163,473
6,371 ALCOA Inc. 528,793
6,821 Barrick Gold Corp. 120,646
2,461 Bethlehem Steel Corp. (a) 20,611
2,923 Freeport McMoRan Copper & Gold Inc. (a) 61,748
4,547 Homestake Mining Co. 35,523
3,372 INCO Limited (a) 79,242
3,012 Newmont Mining Corporation 73,794
1,476 Nucor Corporation 80,903
1,075 Phelps Dodge Corp. 72,159
5,768 Placer Dome Inc. 62,006
1,110 Reynolds Metals Co. 85,054
1,546 USX US Steel Group 51,018
1,630 Worthington Industries Inc. 26,997
------------
1,461,967
------------
Oil, Gas, & Other Energy (5.6%)
1,576 Amerada Hess Corporation 89,438
2,132 Anadarko Petroleum Corp. 72,755
1,912 Apache Corp. 70,625
1,253 Ashland Inc. 41,271
5,570 Atlantic Richfield Inc. 481,805
5,713 Baker Hughes Inc. 120,330
3,285 Burlington Resources Inc. 108,610
11,371 Chevron Corporation 985,013
3,749 Coastal Corp. 132,855
1,446 Columbia Energy Group 91,460
1,656 Consolidated Natural Gas 107,537
400 Eastern Enterprises 22,975
3,660 El Paso Energy Corporation (a) 142,054
12,373 Enron Corp. 549,052
59,729 Exxon Mobil Corporation (a) 4,811,918
7,677 Halliburton Co. 308,999
499 Helmerich & Payne Inc. 10,884
1,523 Kerr McGee Corp. 94,426
866 Nicor Inc. 28,145
6,122 Occidental Pete Corp. 132,388
499 Oneok Inc. 12,537
656 Peoples Energy Corp. 21,976
4,403 Phillips Petroleum Co. 206,941
1,495 Rowan Companies Inc. (a) 32,423
37,139 Royal Dutch Petroleum Company ADR 2,244,588
9,501 Schlumberger Ltd. 534,431
4,228 Sempra Energy 73,462
1,618 Sunoco Inc. 38,023
9,464 Texaco Inc. 514,014
1,985 Transocean Offshore Inc. (a) 66,883
4,485 Union Pacific Resources Group Inc. 57,184
4,243 Unocal Corp. 142,406
5,400 USX Marathon Group 133,313
7,564 Williams Companies Inc. 231,175
------------
12,711,896
------------
</TABLE>
- ---------
12
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
Retailers (6.4%)
7,358 Albertsons Inc. $ 237,296
2,614 Autozone Inc. (a) 84,465
2,037 Bed Bath & Beyond Inc. (a) 70,786
10,646 Carnival Corp. 509,012
3,379 Circuit City Stores-Carmax 152,266
1,905 Consolidated Stores Corp. (a) 30,956
3,842 Costco Wholesale (a) 350,583
6,816 CVS Corp. 272,214
7,677 Dayton Hudson Corp. 563,780
1,874 Dillards Inc. 37,831
3,905 Dollar General Corp. 88,839
3,645 Federated Department Stores Inc. (a) 184,300
14,871 GAP Inc. 684,066
729 Great Atlantic & Pacific Tea Company
Inc. 20,321
1,296 Harcourt General Inc. 52,164
39,449 Home Depot Inc. 2,704,688
4,591 JC Penney Inc. 91,533
8,711 K-Mart Corp. (a) 87,654
2,839 Kohls Corp. (a) 204,940
14,474 Kroger Co. (a) 273,197
3,706 Limited Inc. 160,516
740 Longs Drug Stores Inc. 19,101
6,469 Lowes Companies Inc. 386,523
5,832 May Department Stores Co. 188,082
2,520 Nordstrom Inc. 65,993
6,340 Office Depot Inc. (a) 69,344
928 Pep Boys - Manny Moe & Jack 8,468
4,533 Rite Aid Corp. 50,713
8,763 Safeway Inc. (a) 311,634
6,631 Sears Roebuck & Co. 201,831
2,955 Sherwin Williams Co. 62,055
3,365 Tandy Corp. 165,516
5,622 TJX Companies Inc. 114,900
4,413 Toys R Us Inc. (a) 63,161
76,958 Wal-Mart Stores Inc. 5,319,722
17,418 Walgreen Co. 509,477
2,634 Winn Dixie Stores Inc. 63,051
------------
14,460,978
------------
Technology (5.9%)
1,524 Adaptec Inc. (a) 76,010
1,723 Allegheny Technologies Inc. 38,660
2,759 Analog Devices Inc. (a) 256,587
4,074 BMC Software Inc. (a) 325,665
2,390 CenturyTel Inc. 113,226
56,275 Cisco Systems Inc. (a) 6,028,459
1,404 Citrix Systems Inc. (a) 172,692
1,146 Comverse Technology Inc. (a) 165,884
12,978 Global Crossing (a) 648,900
2,152 Lexmark International Group Inc. (a) 194,756
2,344 Molex Inc. (a) 132,876
2,470 Network Appliance Inc. (a) 205,164
11,212 Qualcomm Inc. (a) 1,976,115
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
4,935 Solectron Corp. (a) $ 469,442
850 Tektronix Inc. 33,044
2,659 Teradyne Inc. (a) 175,494
5,256 Xilinx Inc. (a) 238,984
4,553 Yahoo Inc. (a) 1,970,026
------------
13,221,984
------------
Telecom & Telecom Equipment (11.4%)
2,310 ADC Telecommunications Inc. (a) 167,619
5,303 Alltel Corporation 438,492
1,502 Andrew Corp. (a) 28,444
55,308 AT&T Corp. 2,806,881
26,893 Bell Atlantic Corp. 1,655,600
32,665 Bellsouth Corp. 1,529,130
3,018 General Instrument Corp. (a) 256,530
16,873 GTE Corp. 1,190,601
53,854 Lucent Technologies Inc. 4,028,953
48,644 MCI Worldcom Inc. (a) 2,581,146
10,516 MediaOne Group Inc. (a) 807,760
10,524 Motorola Inc. 1,549,659
6,190 Nextel Communications Inc. (a) 638,344
22,982 Nortel Networks Corp. 2,321,182
59,051 SBC Communications Inc. 2,878,736
1,343 Scientific Atlanta Inc. 74,704
15,032 Sprint FON Group 1,011,842
7,505 Sprint PCS Group (a) 769,263
6,800 Tellabs Inc. (a) 436,475
8,760 US West Inc. 630,720
------------
25,802,081
------------
Textiles & Clothing (.2%)
1,093 Liz Claiborne Inc. 41,124
4,911 Nike Inc. 243,401
1,026 Reebok International Ltd. (a) 8,400
326 Springs Industries Inc. Class A 13,020
2,080 VF Corp. 62,400
------------
368,345
------------
Transportation (.5%)
8,103 Burlington Northern Santa Fe Corp. 196,498
3,807 CSX Corp. 119,445
5,185 FDX Corp. (a) 212,261
1,947 Kansas City Southern Industries Inc. 145,295
6,642 Norfolk Southern Corp. 136,161
1,206 Ryder Systems Inc. 29,472
4,291 Union Pacific Corp. 187,195
------------
1,026,327
------------
Utilities & Energy (1.6%)
2,435 Ameren Corporation 79,746
3,319 American Electric Power Co. 106,623
2,678 Carolina Power & Light Co. 81,512
3,728 Central & Southwest Corporation 74,560
</TABLE>
13-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ------------
<C> <S> <C>
2,851 Cinergy Corp. $ 68,780
2,001 CMS Energy Corporation 62,406
3,874 Consolidated Edison Inc. 133,653
2,608 Constellation Energy Corp. 75,632
3,366 Dominion Resources Inc. 132,116
2,521 DTE Energy Co. 79,096
6,347 Duke Energy Corporation 318,143
6,064 Edison International 158,801
4,329 Entergy Corp. 111,472
4,098 FirstEnergy Corp. 92,973
1,686 Florida Progress Corp. (a) 71,339
3,098 FPL Group Inc. 132,633
2,208 GPU Inc. 66,102
1,997 New Century Energies Inc. 60,659
3,299 Niagara Mohawk Holdings Inc. (a) 45,980
2,760 Northern States Power Co. 53,820
3,275 Peco Energy Co. 113,806
6,693 PG&E Corp. 137,207
1,266 Pinnacle West Capital Corp. (a) 38,692
2,758 PP&L Resources Inc. 63,089
3,847 Public Service Enterprise Group 133,924
5,196 Reliant Energy Inc. 118,859
11,887 Southern Company 279,345
4,829 Texas Utilities Company 171,731
3,391 The AES Corporation (a) 253,477
2,177 Tosco Corp. (a) 59,187
3,820 Unicom Corp. 127,970
------------
3,503,333
------------
Total Common Stocks
(cost $182,965,390) 212,655,844
<CAPTION>
Principal
amount
- -------------------------------------------------------------------
SHORT-TERM INVESTMENTS (5.6%)
<C> <S> <C>
$12,630,000 U.S. Treasury Bills, 5.020%,
January, 2000
(cost $12,584,572) 12,592,868
------------
TOTAL INVESTMENTS (99.9%)
(cost $195,549,962) 225,248,712
CASH AND OTHER ASSETS, NET
OF LIABILITIES (0.1%) 336,490
------------
NET ASSETS (100.0%) $225,585,202
============
</TABLE>
Notes:
(a) Non-income producing security.
At December 31, 1999, net unrealized appreciation of $29,217,770 consisted of
gross unrealized appreciation of $40,827,377 and gross unrealized depreciation
of $11,609,607 based on cost of $196,030,942 for federal income tax purposes.
See accompanying notes to financial statements.
- ---------
14
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
COMMON STOCKS (97.4%)
Commercial Service/Supply (7.4%)
1,302 24/7 Media Inc. (a) $ 73,237
1,771 ABC-NACO Inc. (a) 14,611
1,593 ABM Industries Inc. 32,457
1,497 Adelphia Business Solutions Inc. (a) 71,856
928 Administaff Inc. (a) 28,072
2,349 Advanced Radio Telecom Corp. (a) 56,376
1,822 ADVO Inc. (a) 43,272
797 AHL Services Inc. (a) 16,637
1,029 Alliant Techsystems Inc. (a) 64,120
848 Amerco Inc. (a) 21,200
2,631 AnswerThink Consulting Group Inc. (a) 90,112
1,610 Applied Graphics Technologies Inc. (a) 13,886
2,971 Ascent Entertainment Group Inc. (a) 37,695
2,659 Banta Corp. 59,994
2,214 BE Aerospace Inc. (a) 18,681
3,712 Billing Concepts Corp. (a) 24,128
2,547 Building One Services Corp. (a) 24,037
3,229 CapRock Communications Corp. (a) 104,741
754 Career Education Corp. (a) 28,935
900 Carey International Inc. (a) 21,937
1,063 CDI Corp. (a) 25,645
4,609 CellNet Data Systems Inc. (a) 5,185
6,449 Century Business Services Inc. (a) 54,413
2,764 Checkpoint Systems Inc. (a) 28,158
2,890 ChoicePoint Inc. (a) 119,574
2,213 Citadel Communications Corp. (a) 143,568
3,910 Concentric Network Corp. (a) 120,477
917 Cornell Corrections Inc. (a) 7,680
1,224 Cort Business Services Corp. (a) 21,343
1,861 Crestline Capital Corp. (a) 38,383
902 CT Communications Inc. (a) 50,512
1,587 Cumulus Media Inc. (a) 80,540
1,229 Diamond Technology Partners Inc. (a) 105,617
2,329 Dollar Thrifty Automotive Group Inc. (a) 55,750
440 Duff & Phelps Credit Rating Co. 39,132
922 DVI Inc. (a) 14,003
2,563 Dycom Industries Inc. (a) 112,932
4,989 e.spire Communications Inc. (a) 28,999
903 Electric Lightwave Inc. (a) 16,931
1,386 Electro Rent Corp. (a) 16,112
861 Emcor Group Inc. (a) 15,713
1,575 Emmis Communications Corp. (a) 196,309
2,379 Entercom Communications Corp. (a) 157,014
3,644 Equity Inns Inc. 24,597
1,637 First Consulting Group Inc. (a) 25,373
1,166 FYI Inc. (a) 39,644
1,741 Gaylord Entertainment Co. Class A 52,121
2,466 Getty Images Inc. (a) 120,526
1,242 Gray Communications Systems Inc. 21,968
1,360 Heidrick & Struggles International Inc. (a) 57,460
4,625 ICG Communications Inc. (a) 86,719
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
318 IDG Books Worldwide Inc. (a) $ 3,677
1,969 IDT Corporation (a) 37,165
551 Inet Technologies Inc. (a) 38,501
3,035 Integrated Electrical Services Inc. (a) 30,540
5,550 Interim Services Inc. (a) 137,363
2,423 International FiberCom Inc. (a) 19,081
1,277 Interpool Inc. 9,498
2,439 Iron Mountain Inc. (a) 95,883
871 ITI Technologies Inc. (a) 26,130
587 J&J Snack Foods Corp. (a) 12,033
2,125 Jacobs Engineering Group Inc. (a) 69,062
3,028 John H. Harland Co. 55,450
2,987 Jones Lang LaSalle Inc. (a) 35,471
2,169 Korn Ferry International (a) 78,897
3,485 Labor Ready Inc. (a) 42,256
1,222 LaSalle Hotel Properties 14,282
1,860 Lason Holdings Inc. (a) 20,460
1,828 Leap Wireless International Inc. (a) 143,498
4,417 Lee Enterprises Incorporated Class A 141,068
1,624 Lexington Corporate Properties 14,921
1,268 Loews Cineplex Entertainment Corp. (a) 7,450
1,324 Macrovision Corp. (a) 97,976
638 Mannatech Inc. (a) 3,310
1,383 Marketing Services Group Inc. (a) 23,165
1,115 Maximus Inc. (a) 37,840
913 McGrath Rentcorp 15,977
333 Media Metrix Incorporated (a) 11,905
1,142 Mediconsult.com Incorporated (a) 7,137
1,221 Memberworks Inc. (a) 40,522
3,358 Metamor Worldwide Inc. (a) 97,802
5,165 Metromedia International Group Inc. (a) 24,534
1,672 MGC Communications Inc. (a) 84,854
1,558 Midas Group Inc. 34,081
3,599 Milacron Inc. 55,335
328 Modem Media Poppe Tyson Incorporated (a) 23,083
3,117 Morrison Knudsen Corp. (a) 24,352
2,674 MSC Industrial Direct Inc. (a) 35,430
2,305 National Equipment Services Inc. (a) 14,406
831 National RV Holdings Inc. (a) 15,997
4,079 NationsRent Incorporated (a) 22,944
3,703 Navigant Consulting Inc. (a) 40,270
959 NCO Group Inc. (a) 28,890
1,068 Network Event Theater Incorporated (a) 31,773
1,266 New England Business Services Inc. 30,938
1,068 Nextera Enterprises Incorporation (a) 13,751
1,801 NFO Worldwide Inc. (a) 40,297
482 Northeast Optic Network Inc. (a) 30,155
6,838 Olsten Corp. 77,355
1,023 On Assignment Inc. (a) 30,562
957 On Command Corporation (a) 17,704
315 Optical Cable Corp. (a) 6,300
862 Pan Pacific Retail Properties 14,061
</TABLE>
15-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
955 Parkway Properties Inc. $ 27,516
2,902 Paxson Communications Corp. (a) 34,643
1,117 Pegasus Communication Corp. (a) 109,187
2,137 Penton Media Inc. (a) 51,288
2,548 Personnel Group America (a) 25,798
772 Pierce Leahy Corp. (a) 33,389
4,317 Polaroid Corp. 81,214
4,548 Premiere Technologies Inc. (a) 31,836
4,282 Price Communications Corp. (a) 119,093
842 Primex Technologies Inc. 17,471
1,276 ProBusiness Services Inc. (a) 45,936
327 Professional Detailing Inc. (a) 9,790
1,862 Protection One Inc. (a) 3,608
764 Provant Inc. (a) 19,291
2,359 PS Business Parks Inc. 53,667
658 Pulitzer Inc. (a) 26,526
728 Radio One Inc. (a) 66,976
3,272 RH Donnelley Corp. (a) 61,759
1,702 Rollins Inc. 25,530
4,557 Rollins Truck Leasing Corp. 54,399
3,968 Romac International Inc. (a) 53,320
822 Saga Communications Inc. (a) 16,646
888 Schawk Inc. 7,548
3,956 Security Capital Group (a) 49,450
6,694 Sensormatic Electronics Corp. (a) 116,727
2,443 Sinclair Broadcast Group Inc. (a) 29,812
1,356 Sirius Satellite Radio Inc. (a) 60,342
4,240 Sitel Corp. (a) 29,680
2,119 SL Green Realty Corp. 46,088
914 Source Infomation Management Company (a) 15,309
1,396 Source Media Inc. (a) 25,826
1,688 Staff Leasing Inc. (a) 16,036
2,897 Staffmark Inc. (a) 21,909
1,223 Standard Register 23,696
3,554 STAR Telecommunications Inc. (a) 28,099
729 Startek Inc. (a) 26,426
1,306 Stericycle Inc. (a) 24,569
868 Stone & Webster Inc. 14,593
500 Tanger Factory Outlet Centers Inc. 10,375
529 Tarrant Apparel Group (a) 5,092
1,197 The Ackerley Group Inc. 21,696
435 Tropical Sportswear International Corp. (a) 7,014
162 UBID Inc. (a) 4,293
5,130 UniCapital Corp. (a) 18,917
1,540 United Payors & United Providers Inc. (a) 25,506
391 United Television Inc. 52,980
1,223 URS Corp. (a) 26,524
1,244 US Franchise Services Inc. (a) 5,598
1,279 US Liquids Incorporated (a) 10,712
1,474 US Restaurant Properties 21,097
333 Valley Media Inc. (a) 2,331
1,358 Viatel Inc. (a) 72,823
848 Volt Information Sciences (a) 20,246
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
321 Waste Industries Inc. (a) $ 3,631
901 West Teleservices Corp. (a) 22,018
4,457 World Access Inc. (a) 85,797
1,336 Xtra Corp. (a) 56,947
906 Young Broadcasting Inc. (a) 46,206
2,415 Zebra Technologies Corp. (a) 141,277
2,671 Ziff Davis Inc. (a) 42,235
1,381 Ziff Davis Inc. Zdnet (a) 29,001
-----------
7,031,083
-----------
Consumer Discretionary (9.7%)
1,730 Aaron Rents Inc. 30,707
1,503 Action Performance Companies Inc. (a) 17,284
1,223 Advanced Communications Group Inc. (a) 16,663
1,010 Agribrands International Inc. (a) 46,460
1,756 AMC Entertainment Inc. (a) 15,146
897 American Axle & Manufacturing Holdings Inc. (a) 10,876
904 American Classic Voyages Co. (a) 31,640
1,820 American Italian Pasta Co. (a) 55,965
1,659 American Retirement Corp. (a) 13,168
2,797 Ames Department Stores Inc. (a) 80,589
8,126 AMF Bowling Inc. (a) 25,394
730 Anchor Gaming Inc. (a) 31,709
2,149 AnnTaylor Stores Corporation (a) 74,006
2,569 Applebee's International Inc. 75,785
1,870 Argosy Gaming Co. (a) 29,102
1,747 Aurora Foods Inc. (a) 16,269
1,788 Avado Brands Inc. 7,543
3,898 Aztar Corporation (a) 42,391
2,347 Bally Total Fitness Holding Corp. (a) 62,636
2,820 barnesandnoble.com inc. (a) 40,009
1,273 Bassett Furniture Industries Inc. 20,368
297 BEBE Stores Inc. (a) 8,019
514 Berlitz International Inc. (a) 8,834
3,935 Bob Evans Farms Inc. 60,747
3,150 Boca Resorts Inc. (a) 30,712
1,262 Boise Cascade Office Products Corp. (a) 18,930
3,478 Bombay Company Inc. (a) 15,651
7,668 Borders Group Inc. (a) 123,167
3,611 Bowne & Co. Inc. 48,748
3,606 Boyd Gaming Corp. (a) 20,960
1,190 Bright Horizons Family Solutions Inc. (a) 22,312
1,213 Brooke Group Ltd. (a) 18,119
1,762 Brown Shoe Company Inc. 24,888
821 Buckle Inc. (a) 12,161
2,589 Budget Group Inc. (a) 23,463
4,152 Buffets Inc. (a) 41,520
1,810 Burlington Coat Factory Warehouse Corp. 25,114
1,074 Burns International Services Corp. (a) 11,613
879 Bush Industries Inc. 15,108
7,474 Callaway Golf Company (a) 132,196
347 CareerBuilder Inc. (a) 2,234
888 Carmike Cinemas Inc. (a) 6,938
</TABLE>
- ---------
16
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,141 Carriage Services Inc. (a) $ 6,775
916 Casella Waste Systems Inc. (a) 17,289
5,202 Casey's General Stores Inc. 54,296
2,444 Cash America International Inc. 23,829
1,530 Cato Corporation 19,316
5,736 CBRL Group Inc. (a) 55,657
1,556 CDnow Inc. (a) 15,366
2,679 CEC Entertainment Inc. (a) 76,017
1,241 Central Parking Corp. 23,734
911 Championship Auto Racing Teams Inc. (a) 20,953
736 Charles River Associates Inc. (a) 24,656
9,563 Charming Shoppes Inc. (a) 63,355
391 Cheap Tickets Inc. (a) 5,352
1,702 Cheesecake Factory Inc. (a) 59,570
667 Chico's FAS Inc. (a) 25,096
1,635 Children's Place Retail Stores Inc. (a) 26,875
4,214 Chiquita Brands International Inc. 20,016
5,442 Choice Hotels International Inc. (a) 93,194
791 Churchill Downs Inc. 17,847
5,212 CKE Restaurants Inc. 30,620
298 Coldwater Creek Inc. (a) 6,109
955 Coleman Company Inc. (a) 8,893
862 Columbia Sportswear Co. (a) 18,533
9,006 CompUSA Inc. (a) 46,156
1,439 Consolidated Graphics Inc. (a) 21,495
2,327 Consolidated Products Inc. (a) 23,556
1,757 Copart Inc. (a) 76,429
426 Corinthian Colleges Inc. (a) 10,171
782 Corporate Executive Board Co. (a) 43,694
1,985 Cost Plus Inc. (a) 70,716
793 CPI Corp. 17,892
662 Creative Computers Inc. (a) 4,841
1,815 CSK Auto Corporation (a) 31,762
611 CSS Industries Inc. (a) 13,060
1,683 Daisytek International Corp. (a) 39,235
1,692 Dan River Inc. (a) 8,671
1,277 Dave & Buster's Inc. (a) 10,455
796 David's Bridal Inc. (a) 8,905
359 Deb Shops Inc. (a) 6,641
5,105 Del Monte Foods Company (a) 62,855
719 dELIA*s Inc. (a) 5,213
1,645 Department 56 Inc. (a) 37,218
845 Direct Focus Inc. (a) 23,449
849 Discount Auto Parts Inc. (a) 15,335
1,286 Donna Karan International Inc. (a) 8,439
1,306 Dover Downs Entertainment Inc. 24,487
1,595 Dress Barn Inc. (a) 26,517
1,673 Duane Reade Inc. (a) 46,112
1,433 E4L Inc. (a) 3,582
1,933 Education Management Corp. (a) 27,062
556 Electronics Boutique Holdings Corp. (a) 10,008
1,291 Enesco Group Inc. 14,282
4,024 Ethan Allen Interiors Inc. 129,019
6,964 Extended Stay America Inc. (a) 53,101
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,206 Factory 2-U Stores Inc. (a) $ 34,220
4,354 Fairfield Communities Inc. (a) 46,805
2,064 Family Golf Centers Inc. (a) 2,903
325 Fatbrain.com Inc. (a) 8,145
2,978 Fedders Corporation 16,379
1,598 Finish Line Inc. Class A (a) 8,689
327 Flycast Communications Corp. (a) 42,490
1,948 Footstar Inc. (a) 59,414
1,388 Fossil Inc. (a) 32,097
2,017 Franklin Covey Company (a) 15,127
4,652 Furniture Brands International Inc. (a) 102,344
1,909 G&K Services Inc. 61,804
532 GC Companies Inc. (a) 13,765
2,225 Genesco Inc. (a) 28,925
1,919 Goody's Family Clothing Inc. (a) 10,315
2,945 Grand Union Company (a) 29,818
1,700 Great Atlantic & Pacific Tea Company Inc. 47,387
58 Grey Advertising Inc. 23,200
1,522 Group 1 Automotive Inc. (a) 21,213
782 Guess ? Inc. (a) 17,008
1,628 Guilford Mills Inc. 11,803
2,205 Guitar Center Inc. (a) 22,188
2,077 Gymboree Corporation (a) 11,683
4,081 Ha-Lo Industries Inc. (a) 30,607
2,786 Handleman Company (a) 37,263
11,788 Hanover Direct Inc. (a) 42,732
1,746 Haverty Furniture Companies Inc. 22,043
6,043 Heilig-Meyers Company 16,618
1,269 Herbalife International Inc. 18,242
2,152 Hines Horticulture Inc. (a) 18,157
3,143 Hollywood Entertainment Corp. (a) 45,573
2,338 Hollywood Park Inc. (a) 52,459
1,986 IHOP Corp. (a) 33,141
444 Information Holdings Inc. (a) 12,904
2,004 Insight Enterprises Inc. (a) 81,413
2,379 International Home Foods Inc. (a) 41,335
1,871 InterTAN Inc. (a) 48,880
1,427 ITT Educational Services Inc. (a) 22,029
4,071 Jack in the Box (a) 84,219
1,277 Jakks Pacific Inc. (a) 23,864
1,594 Jo-Ann Stores Inc. (a) 17,932
3,330 Jostens Inc. 80,961
4,540 Journal Register Co. (a) 70,086
2,339 Just For Feet Inc. (a) 2,830
1,596 Justin Industries Inc. 23,740
690 K-Swiss Inc. (a) 12,819
2,783 Kellwood Company 54,095
1,801 Kelly Services Inc. Class A 45,250
64 Kenneth Cole Productions Inc. (a) 2,928
5,122 La-Z-Boy Incorporated 86,114
2,460 Landry's Seafood Restaurants Inc. (a) 21,371
1,309 Lands' End Inc. (a) 45,488
1,063 Learning Tree International (a) 29,764
1,593 Libbey Inc. 45,799
</TABLE>
17-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
660 Lithia Motors Inc. (a) $ 11,797
2,319 Lodgian Inc. (a) 11,595
3,480 Lone Star Steakhouse & Saloon Inc. (a) 31,048
952 LSI Industries Inc. (a) 20,587
2,228 Luby's Inc. 25,343
3,764 Mail-Well Inc. (a) 50,814
902 Marvel Enterprises Inc. (a) 4,961
2,623 Michaels Stores Inc. (a) 74,755
3,471 Micro Warehouse Inc. (a) 64,213
622 Mikasa Inc. 6,259
1,206 Morrison Managment Specialists Inc. 26,004
2,965 Musicland Stores Corp. (a) 25,017
3,091 Nautica Enterprises Inc. (a) 34,967
1,100 NEFF Corp. (a) 7,012
929 NPC International Inc. (a) 7,316
1,366 O'Charley's Inc. (a) 17,929
2,858 Oakley Inc. (a) 15,898
11,128 OfficeMax Inc. (a) 61,204
4,821 Ogden Corp. 57,551
1,338 Oneida Ltd. 29,101
1,218 Oshkosh B'Gosh Inc. 25,654
605 Oxford Industries Inc. 11,987
2,719 Pacific Sunwear of California Inc. (a) 87,518
2,165 Papa Johns International Inc. (a) 56,425
368 PC Connection Inc. (a) 12,696
4,559 Pep Boys Manny Moe & Jack Inc. 41,601
2,121 Petco Animal Supplies Inc. (a) 31,550
11,483 PETsMART Inc. (a) 66,027
557 PF Chang's China Bistro Inc. (a) 13,855
2,190 Phillips-Van Heusen Corp. 18,204
9,436 Pier 1 Imports Inc. 60,154
962 Pillowtex Corporation 5,952
1,760 Pinnacle Systems Inc. (a) 71,610
1,949 Playboy Enterprises Inc. Class B (a) 47,385
2,673 Players International Inc. (a) 21,969
1,885 Pre-Paid Legal Services Inc. (a) 45,240
1,253 Preview Travel Inc. (a) 65,313
5,094 Prime Hospitality Corp. (a) 44,891
2,067 Quiksilver Inc. (a) 32,038
1,394 Racing Champions Corp. (a) 6,186
1,108 Rare Hospitality International Inc. (a) 23,978
4,479 Reebok International Ltd. (a) 36,672
2,748 Regis Corporation 51,868
1,699 Rent-A-Center Inc. (a) 33,661
1,618 Rent-Way Inc. (a) 30,236
1,362 Restoration Hardware Inc. (a) 9,279
3,120 Ruby Tuesday Inc. 56,745
1,008 Russ Berrie & Company Inc. 26,460
2,728 Russell Corp. 45,694
3,625 Ryan's Family Steak Houses Inc. (a) 30,812
848 Salton Inc. (a) 28,355
1,428 Scholastic Corporation (a) 88,804
1,747 School Speciality Inc. (a) 26,423
956 Scientific Games Holdings Corp. (a) 15,834
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
966 SCP Pool Corporation (a) $ 25,056
1,755 Select Comfort Corp. (a) 7,130
817 Shoe Carnival Inc. (a) 8,221
2,482 Shop At Home Inc. (a) 24,665
2,945 ShopKo Stores Inc. (a) 67,735
1,809 Sonic Corporation (a) 51,556
1,513 Spiegel Inc. (a) 10,638
1,088 Springs Industries Inc. Class A 43,452
2,320 Station Casinos Inc. (a) 52,055
2,687 Stein Mart Inc. (a) 15,282
838 Steinway Musical Instruments Inc. (a) 16,969
2,748 Storage USA Inc. 83,127
757 Strayer Education Inc. 14,951
4,574 Stride Rite Corp. 29,731
1,911 Sturm Ruger & Company Inc. 16,960
8,517 Sunbeam Corp. (a) 35,665
4,098 SunGlass Hut International Inc. (a) 46,102
3,488 Sunterra Corporation (a) 40,112
3,501 Systemax Inc. (a) 29,758
1,166 Talbots Inc. 52,033
5,310 The Boyds Collection Ltd. (a) 36,838
2,230 The Marcus Corporation 29,966
2,453 The Men's Wearhouse Inc. (a) 72,057
988 Timberland Company (a) 52,240
4,318 Topps Company Inc. (a) 44,799
701 Tractor Supply Co. (a) 11,216
3,179 Trans World Entertainment Corp. (a) 33,379
386 Trendwest Resorts Inc. (a) 8,685
1,592 Triarc Companies Inc. (a) 29,253
4,189 True North Communications Inc. 187,196
814 Tuesday Morning Corp. (a) 15,008
5,692 Tupperware Corp. 96,408
1,048 Tweeter Home Entertainment Group Inc. (a) 37,204
1,129 UniFirst Corporation 14,254
2,093 United Auto Group Inc. (a) 18,706
859 United Natural Foods Inc. (a) 10,308
1,279 United Retail Group Inc. (a) 10,552
3,145 United Stationers Inc. (a) 89,829
956 Urban Outfitters Inc. (a) 27,843
3,720 US Office Products Co. (a) 11,625
2,162 Vail Resorts Inc. (a) 38,781
951 Value America Inc. (a) 4,814
1,356 Value City Department Stores Inc. (a) 20,509
3,632 ValueVision International Inc. (a) 208,159
2,120 Veterinary Centers of America Inc. (a) 27,295
2,723 Vlasic Foods International Inc. (a) 15,487
1,272 Wackenhut Corporation 19,000
958 Wackenhut Corrections Corp. (a) 11,197
4,205 Walter Industries Inc. (a) 45,467
1,332 WD-40 Company 29,471
854 West Marine Inc. (a) 7,045
3,439 Westwood One Inc. (a) 261,364
1,101 Wet Seal Inc. (a) 13,487
847 Whitehall Jewellers Inc. (a) 31,233
</TABLE>
- ---------
18
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,620 Whole Foods Market Inc. (a) $ 121,502
2,227 Windmere-Durable Holdings Inc. (a) 37,859
2,168 WMS Industries Inc. (a) 28,455
4,014 Wolverine World Wide Inc. 43,903
-----------
9,215,267
-----------
Consumer Staples (1.5%)
13,801 7-Eleven Inc. (a) 24,584
868 99 Cents Only Stores (a) 33,201
2,850 Advantica Restaurant Group Inc. (a) 4,987
1,759 Beringer Wine Estates Holdings Inc. (a) 70,140
1,499 Block Drug Company Inc. 46,461
1,590 Canandaigua Brands Inc. (a) 81,090
3,804 Church & Dwight Company Inc. 101,519
190 Coca-Cola Bottling Co. 9,001
3,706 Corn Products International Inc. 121,371
4,555 DIMON Inc. 14,804
1,328 Dreyer's Grand Ice Cream Inc. 22,576
4,146 Earthgrains Company 66,854
83 Farmer Brothers Co. 13,197
3,820 Fleming Companies Inc. 39,155
754 General Cigar Holdings Inc. (a) 6,268
1,386 Hain Food Group Inc. (a) 31,012
3,215 HomeBase Inc. (a) 9,846
3,172 Imperial Sugar Company 10,507
953 Ingles Markets Inc. 10,602
1,698 International Multifoods Corp. 22,498
2,550 JM Smucker Co. 49,725
2,411 Lance Inc. 24,110
1,406 Michael Foods Inc. 34,623
1,382 Nature's Sunshine Products Inc. 11,056
1,194 Performance Food Group Co. (a) 29,104
1,609 Pilgrim's Pride Corp. Class A 13,375
2,848 Playtex Products Inc. (a) 43,788
2,786 Ralcorp Holdings Inc. (a) 55,546
742 Riviana Foods Inc. 13,170
825 Robert Mondavi Corp. (a) 28,669
2,973 Ruddick Corporation 46,081
1,150 Sanderson Farms Inc. 9,847
16 Seaboard Corp. 3,108
833 Smart & Final Inc. 6,039
4,532 Smithfield Foods Inc. (a) 108,768
3,087 Universal Corporation 70,422
4,662 Universal Foods Corp. 94,988
1,622 Wild Oats Markets Inc. (a) 35,988
1,309 Zapata Corp. (a) 6,054
-----------
1,424,134
-----------
Durable Products (3.8%)
1,335 Alpine Group Inc. (a) 17,188
3,811 Applied Power Inc. Class A 140,054
1,249 Asyst Technology Corp. (a) 81,888
1,102 Aviation Sales Co. (a) 18,183
3,235 Baldor Electric Co. 58,634
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
3,076 Blount International Inc. (a) $ 49,024
3,995 Champion Enterprises Inc. (a) 34,207
1,542 Chart Industries Inc. 6,168
1,266 Columbus McKinnon Corp. 12,818
1,593 Cuno Inc. (a) 32,980
472 Curtiss-Wright Corp. 17,405
849 Detroit Diesel Corp. 16,290
3,964 Donaldson Inc. 95,384
4,974 DR Horton Inc. 68,703
3,255 Fleetwood Enterprises Inc. 67,134
3,628 Flowserve Corporation 61,676
4,047 Foster Wheeler Corp. 35,917
1,275 Gardner Denver Inc. (a) 21,277
1,489 Graco Inc. 53,418
2,974 Griffon Corporation (a) 23,234
1,639 Harman International Industries Inc. 91,989
509 Heico Corp. 11,103
5,047 Hussman International Inc. 76,020
2,905 Idex Corp. 88,239
4,301 JLG Industries Inc. 68,278
407 JLK Direct Distribution Inc. (a) 4,197
4,685 Kaufman & Broad Home Corp. 113,318
2,791 Kennametal Inc. 93,847
1,615 Keystone Automotive Industries Inc. (a) 9,488
3,187 Kimball International Inc. Class B 52,585
2,334 Kulicke & Soffa Industries Inc. (a) 99,341
3,774 Lam Research Corp. (a) 421,037
4,583 Lennar Corp. 74,474
1,257 Lindsay Manufacturing Co. 22,940
639 LS Starrett Co. Class A 14,338
2,543 Manitowoc Inc. 86,462
1,417 Matthews International Corp. 38,967
2,220 MDC Holdings Inc. 34,826
3,774 Mettler Toledo International Inc. (a) 144,120
413 Moog Inc. (a) 11,151
840 Movado Group Inc. 18,322
750 National Presto Industries Inc. 26,625
1,381 Nordson Corp. 66,633
1,021 NVR Inc. (a) 48,753
3,384 O'Reilly Automotive Inc. (a) 72,756
4,669 Oakwood Homes Corp. 14,882
1,942 OEA Inc. (a) 9,467
3,647 Orbital Sciences Corp. (a) 67,697
1,859 Palm Harbor Homes Inc. (a) 33,462
714 Parkervision Inc. (a) 21,955
2,431 Precision Castparts Corp. 63,814
2,659 Presstek Inc. (a) 36,894
3,211 Pulte Corp. 72,247
2,065 Regal Beloit Corp. 42,591
745 Robbins & Myers Inc. 16,856
2,974 Roper Industries Inc. 112,454
1,485 Ryland Group Inc. 34,248
1,192 Sauer Inc. 10,803
1,420 Scott Technologies Inc. (a) 26,802
</TABLE>
19-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,166 Specialty Equipment Companies Inc. (a) $ 27,911
2,444 Standard Pacific Corp. 26,884
2,760 Stewart & Stevenson Services Inc. 32,689
852 Tennant Co. 27,903
2,401 Terex Corp. (a) 66,628
1,130 The Kroll-O'Gara Company (a) 18,645
749 Thermo Fibertek Inc. (a) 5,337
1,496 Titan International Inc. 9,724
2,064 Toll Brothers Inc. (a) 38,442
1,168 Triumph Group Inc. (a) 28,251
1,219 U.S. Home Corp. (a) 31,161
5,774 Unifi Inc. (a) 71,092
543 Virco Manufacturing Corp. 7,059
-----------
3,657,289
-----------
Financial Services (15.6%)
1,046 1st Source Corporation 26,150
1,066 Acceptance Insurance Companies Inc. (a) 6,196
1,901 Advanta Corp. 34,693
771 Advest Group Inc. 14,167
2,238 Affiliated Managers Group Inc. (a) 90,499
903 Alabama National Bancorporation 17,044
352 Alexander's Inc. (a) 27,808
1,095 Alexandria Real Estate Equities Inc. 34,835
3,922 Alfa Corp. 63,978
516 Alleghany Corp. (a) 95,718
1,043 Alliance Bancorp Inc. (a) 19,295
6,090 Allied Capital Corp. (a) 111,523
2,831 Amcore Financial Inc. 67,944
791 American Annuity Group Inc. 14,238
1,702 American Industrial Properties REIT (a) 21,062
7,261 AmeriCredit Corp. (a) 134,328
1,439 AmerUs Life Holdings Inc. 33,097
1,466 AMLI Residential Properties 29,595
4,760 Amresco Inc. (a) 6,694
2,504 Anchor Bancorp of Wisconsin Inc. 37,873
790 Anchor Financial Corporation (a) 21,725
688 Andover Bancorp Inc. 19,264
3,825 Arcadia Financial Ltd. (a) 16,973
1,221 Area Bancshares Corp. 29,914
1,700 Argonaut Group Inc. 33,787
1,854 Arthur J. Gallagher & Co. 120,046
1,561 Associated Estates Realty Corp. 12,195
1,313 Baldwin & Lyons Inc. Class B 29,050
427 BancFirst Corp. 14,491
615 BancFirst Ohio Corp. 14,145
764 Banco Santander Puerto Rico (a) 11,794
5,613 BancorpSouth Inc. 91,562
4,970 BancWest Corp. 96,915
1,141 Bank of Granite Corp. 24,531
3,120 Bank United Corporation 85,020
4,215 BankAtlantic Bancorp Inc. Class A 21,602
2,336 Banknorth Group Inc. 62,488
2,348 Bay View Capital Corp. 33,312
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,026 Bedford Property Investors Inc. $ 34,569
1,157 BOK Financial Corp. (a) 23,375
1,655 Boykin Lodging Co. 18,102
2,400 Bradley Real Estate Inc. 41,850
3,475 Brandywine Realty Trust 56,903
4,415 BRE Properties Inc. 100,165
1,636 Brenton Banks Inc. 16,564
1,307 Brookline Bancorp Inc. 12,743
1,096 Brown & Brown Inc. 41,990
840 BSB Bancorp Inc. 16,170
1,653 BT Financial Corp. 36,359
3,192 Burnham Pacific Properties Inc. 29,925
4,027 Cabot Industrial Trust 73,996
3,935 Camden Property Trust 107,721
2,117 Capital Automotive REIT 25,801
570 Capital City Bank Group Inc. 12,255
2,527 Capital Re Corp. 36,111
8,950 Capitol Federal Financial (a) 87,262
5,753 Capstead Mortgage Corp. (a) 24,091
2,523 Carolina First Corp. 46,045
1,275 Castle & Cooke Inc. (a) 16,177
873 Cathay Bancorp Inc. 35,793
2,081 CB Richard Ellis Services Inc. (a) 25,752
2,183 CBL & Associates Properties Inc. 45,024
1,728 Centennial Bancorp (a) 18,576
2,402 Center Trust Inc. 23,269
2,016 Centerpoint Properties Trust 72,324
939 Century South Banks Inc. 21,010
1,937 CFS Bancorp Inc. (a) 18,038
1,908 Charles E. Smith Residential Realty Inc. 67,495
1,987 Charter Municipal Mortgage Acceptance Co. 23,347
2,065 Chateau Communities Inc. 53,561
1,589 Chelsea GCA Realty Inc. 47,273
1,302 Chemical Financial Corp. 41,501
1,355 Chicago Title Corp. 62,669
2,816 Chittenden Corp. 83,424
4,005 Citizens Banking Corp. 89,612
1,624 City Holding Corp. 22,736
1,595 CNA Surety Corp. 20,735
2,549 Colonial Properties Trust 59,105
2,757 Commerce Bancorp Inc. 111,486
2,554 Commerce Group Inc. 66,723
2,948 Commercial Net Lease Realty Inc. 29,296
1,277 Commonwealth Bancorp Inc. 21,230
4,631 Community First Bankshares Inc. 72,938
1,123 Community Trust Bancorp Inc. 22,460
780 CompuCredit Corporation (a) 30,030
1,308 Conning Corp. 10,791
1,211 ContiFinancial Corp. (a) 284
3,918 Cornerstone Realty Income Trust Inc. 38,200
908 Corus Bankshares Inc. 21,792
2,313 Cousins Properties Inc. 78,497
858 CPB Inc. 24,453
3,608 Crawford & Co. Class B 49,159
</TABLE>
- ---------
20
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,228 Credit Acceptance Corp. (a) $ 8,216
453 Creditrust Corp. (a) 3,482
2,211 Crown American Realty Trust 12,160
1,158 CVB Financial Corp. 26,779
1,236 Dain Rauscher Corp. 57,474
1,541 Delphi Financial Group Inc. (a) 46,230
5,888 Developers Diversified Realty Corp. 75,808
1,275 Dime Community Bancshares 23,587
3,084 Doral Financial Corp. 37,972
2,052 Downey Financial Corp. 41,425
2,225 East West Bancorp Inc. (a) 25,448
1,593 EastGroup Properties Inc. 29,470
2,962 Eaton Vance Corp. 112,556
2,619 Enhance Financial Services Group Inc. 42,559
1,425 Entertainment Properties Trust 18,792
1,745 Essex Property Trust Inc. 59,330
1,274 EW Blanch Holdings Inc. 78,032
886 F&M Bancorp 17,942
2,240 F&M National Corp. 61,740
1,059 Fair Isaac & Company Inc. 56,127
551 Farm Family Holdings Inc. (a) 23,280
782 Farmers Capital Bank Corp. 23,558
1,314 FBL Financial Group Inc. 26,280
870 FCNB Corp. (a) 13,267
793 Federal Agriculture Mortgage Corp. (a) 16,009
3,929 Federal Realty Investment Trust 73,914
476 Fidelity Holdings Inc. (a) 9,014
2,314 Fidelity National Financial Inc. 33,264
1,110 Financial Federal Corp. (a) 25,322
4,584 Finet.com Inc. (a) 6,016
2,289 First Bancorp 47,497
1,047 First Busey Corp. (a) 23,688
1,556 First Charter Corp. 23,146
616 First Citizens Bancshares Inc. 42,966
629 First Commerce Bancshares Inc. 12,383
6,054 First Commonwealth Financial Corp. 72,648
1,491 First Federal Capital Corp. 21,806
3,454 First Financial Bancorp 73,825
945 First Financial Bankshares Inc. 29,059
674 First Financial Corp. 27,971
1,277 First Financial Holdings Inc. 20,432
913 First Indiana Corp. 19,858
3,718 First Industrial Realty Trust Inc. 102,013
1,098 First Merchants Corp. 28,822
3,565 First Midwest Bancorp Inc. 94,472
910 First Republic Bank (a) 21,385
4,120 First Sentinel Bancorp Inc. 32,187
1,582 First Sierra Financial Inc. (a) 27,092
2,493 First United Bancshares Inc. 33,344
1,108 First Washington Bancorp Inc. 16,343
776 First Washington Realty Trust Inc. (a) 14,502
1,974 Firstfed Financial Corp. (a) 27,759
755 Flagstar Bancorp Inc. 13,024
1,989 FNB Corp. 44,255
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,805 Foremost Corp. of America $ 51,217
1,034 FPIC Insurance Group Inc. (a) 17,255
1,545 Freedom Securities Corp. 17,381
2,327 Friedman Billings Ramsey Group Inc. (a) 18,325
1,397 Frontier Financial Corp. 27,940
2,979 Frontier Insurance Group Inc. 10,240
2,485 Gables Residential Trust 59,640
1,178 GBC Bancorp 22,750
745 Getty Realty Corp. (Holding Co.) 8,335
853 Glacier Bancorp Inc. (a) 13,755
3,075 Glenborough Realty Trust Inc. 41,128
2,336 Glimcher Realty Trust 30,076
790 Golf Trust of America Inc. 13,381
1,535 Grand Premier Financial Inc. 22,737
1,595 Great Lakes REIT Inc. 22,928
614 Great Southern Bancorp Inc. (a) 13,508
1,128 Greater Bay Bancorp 48,363
825 Hamilton Bancorp Inc. (a) 14,644
1,054 Hancock Holding Co. 40,842
1,363 Harbor Florida Bancshares Inc. 17,634
1,303 Harleysville Group Inc. 18,568
797 Harleysville National Corp. 25,903
747 Harris Financial Inc. 5,602
3,899 HCC Insurance Holdings Inc. 51,418
2,805 Health Care REIT Inc. 42,426
4,907 Healthcare Property Investors Inc. 117,155
3,979 Healthcare Realty Trust Inc. 62,172
1,270 Hilb Rogal & Hamilton Co. 35,877
1,855 Home Properties of New York Inc. 50,897
4,016 Horace Mann Educators Corp. (a) 78,814
4,973 Hospitality Properties Trust 94,798
2,867 HSB Group Inc. 96,940
1,615 Hudson River Bancorp Inc. (a) 16,352
4,956 Hudson United Bancorp 126,688
3,393 Imperial Bancorp (a) 81,856
2,552 Imperial Credit Commercial Mortgage Investment
Corp. 29,029
2,573 Imperial Credit Industries Inc. (a) 16,081
7,379 Independence Community Bank 92,237
1,169 Independent Bank Corp. 14,612
7,022 IndyMac Mortgage Holdings Inc. 89,530
3,395 Innkeepers USA Trust 27,797
1,774 Insignia Financial Group Inc. (a) 15,412
1,294 International Bancshares Corp. 57,260
1,573 InterWest Bancorp Inc. 30,280
1,409 Investors Financial Services Corp. 64,814
3,279 IRT Property Co. 25,617
1,067 Irwin Financial Corp. 19,006
3,288 JDN Realty Corp. 53,019
2,092 Jefferies Group Incorporated (a) 46,024
1,275 JP Realty Inc. 19,922
825 JSB Financial Inc. 42,797
648 Kansas City Life Insurance Co. 21,870
2,668 Kilroy Realty Corp. 58,696
</TABLE>
21-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,652 Koger Equity Inc. $ 44,752
3,079 Konover Property Trust Inc. (a) 19,436
1,446 LandAmerica Financial Group Inc. 26,570
4,143 Leucadia National Corp. (a) 95,807
1,276 Liberty Financial Companies Inc. (a) 29,268
2,473 LNR Property Corp. 49,151
1,982 Local Financial Corp. (a) 20,563
2,651 LTC Properties Inc. 22,368
2,976 Macerich Co. 61,938
2,339 MAF Bancorp Inc. 48,973
2,124 Manufactured Home Communities Inc. 51,640
473 Markel Corp. (a) 73,315
1,098 Medallion Financial Corp. 19,695
2,234 Medical Assurance Inc. (a) 47,333
1,858 Merchants New York Bancorp Inc. 31,818
4,730 Meristar Hospitality Corporation Inc. 75,680
3,768 Metris Companies Inc. 134,471
1,331 MGI Properties 6,988
294 Michigan Financial Corp. 8,103
1,908 Mid-America Apartment Communities Inc. 43,168
835 Mid-America Bancorp 23,797
1,152 Mid-State Bancshares (a) 36,720
827 Midwest Banc Holdings Incorporated (a) 11,371
1,520 Mills Corp. 27,170
577 Mississippi Valley Bancshares Inc. 15,579
1,847 MMI Companies Inc. 15,930
2,852 Morgan Keegan Inc. 47,949
1,442 National Bancorp of Alaska Inc. 40,466
1,738 National City Bancshares Inc. 43,667
1,016 National Discount Brokers Group Inc. (a) 26,797
1,172 National Golf Properties Inc. 23,147
2,423 National Health Investors Inc. 36,042
1,776 National Penn Bancshares Inc. 44,622
250 National Western Life Insurance Co. (a) 17,156
4,559 Nationwide Health Properties Inc. 62,686
1,256 NBT Bancorp Inc. 19,468
2,313 Net.B@nc Inc. (a) 42,790
927 New Century Financial Corporation (a) 14,600
571 NextCard Inc. (a) 16,488
1,276 Niagara Bancorp Inc. (a) 13,079
1,388 Northwest Bancorp Inc. 9,629
1,360 Oceanfirst Financial Corp. 23,545
3,125 Ocwen Financial Corp. (a) 19,531
6,120 Ohio Casualty Corp. (a) 98,302
870 Omega Financial Corp. 25,230
1,914 Omega Healthcare Investors Inc. 24,284
3,297 One Valley Bancorp of West Virginia Inc. 100,971
1,137 Oriental Financial Group Inc. 25,085
2,439 Pacific Capital Bancorp 74,999
1,700 Pacific Gulf Properties Inc. 34,425
842 Park National Corp. 80,832
633 Penn Treaty American Corp. (a) 9,970
1,168 Pennsylvania Real Estate Investment Trust 17,009
621 Peoples Holdings Co. 17,931
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,285 PFF Bancorp Inc. (a) $ 24,897
920 Philadelphia Consolidated Holding Corp. (a) 13,340
4,250 Phoenix Investment Partners Ltd. 34,531
1,022 PICO Holdings Inc. (a) 12,583
2,569 Pioneer Group Inc. (a) 40,462
1,728 PMA Capital Corp. 34,344
3,515 Policy Management Systems Corp. (a) 89,852
2,548 Premier Bancshares Inc. 34,717
1,554 Premier National Bancorp Inc. (a) 28,652
3,714 Prentiss Properties Trust 77,994
2,366 Presidential Life Corp. 43,475
867 Prime Group Realty Trust 13,168
4,167 Prime Retail Inc. 23,439
259 Prism Fianancial Corp. (a) 1,457
549 Private Business Inc. (a) 2,642
899 Professionals Group Inc. (a) 21,070
2,977 Profit Recovery Group International Inc. (a) 79,077
951 Provident American Corp. (a) 33,463
2,525 Provident Bankshares Corp. 43,714
1,680 Queens County Bancorp Inc. 45,570
959 R&G Financial Corp. (a) 11,028
3,470 Radian Group Inc. 165,693
4,021 Raymond James Financial Inc. 75,142
2,607 Realty Income Corp. 53,769
3,928 Reckson Associates Realty Corp. 80,524
958 Redwood Trust Inc. (a) 11,975
3,480 Regency Realty Corp. 69,600
850 Reliance Bancorp Inc. 29,325
6,248 Reliance Group Holdings Inc. (a) 41,783
4,446 Republic Bancorp Inc. 53,977
601 Republic Bancorp Inc. Kentucky (a) 5,146
582 Republic Bancshares Inc. (a) 7,275
4,919 Republic Security Financial Corp. 35,202
2,188 Resource America Inc. 17,230
2,084 Resource Bancshares Mortgage Group Inc. 9,443
2,430 RFS Hotel Investors Inc. 25,363
3,188 Richmond County Financial Corp. 57,583
1,927 Riggs National Corp. 25,412
861 Risk Capital Holdings Inc. (a) 10,870
819 RLI Corp. 27,846
2,673 S & T Bancorp Inc. 61,980
918 Sandy Springs Bancorp Inc. 24,786
1,062 Saul Centers Inc. 14,934
1,220 SCPIE Holdings Inc. 39,192
2,593 Seacoast Financial Services Corp. (a) 26,416
1,100 Second Bancorp Inc. (a) 24,613
2,762 Selective Insurance Group Inc. 47,472
947 Shoreline Financial Corp. 17,519
2,865 Shurgard Storage Centers Inc. 66,432
149 Siebert Financial Corp. (a) 2,198
1,799 Silicon Valley Bancshares (a) 89,050
688 Simmons First National Corp. 17,200
7,689 Sky Financial Group Inc. 154,741
</TABLE>
- ---------
22
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,758 Southwest Bancorporation of Texas Inc. (a) $ 54,643
1,181 Southwest Securities Group Inc. 32,330
1,222 Sovran Self Storage Inc. 23,142
829 St. Francis Capital Corp. 15,440
1,433 Stancorp Financial Group Inc. (a) 36,094
1,382 State Auto Financial Corp. 12,611
3,995 Staten Island Bancorp Inc. 71,910
2,587 Sterling Bancshares Inc. 28,942
748 Sterling Financial Corp. 23,188
1,140 Stewart Information Services Corp. 15,176
399 Student Loan Corp. 19,900
2,138 Summit Properties Inc. 38,217
1,698 Sun Communities Inc. 54,654
1,742 Superior National Insurance Group Inc. (a) 13,174
3,612 Susquehanna Bancshares Inc. 57,340
3,373 Taubman Centers Inc. 36,260
3,348 Telebanc Financial Corp. (a) 87,048
1,383 Texas Regional Bancshares Inc. 40,107
5,451 The First American Financial Corp. 67,797
731 The John Nuveen Co. 26,362
1,561 The Liberty Corp. 65,855
429 The Midland Co. 8,902
4,636 The Mony Group Inc. (a) 135,313
2,108 Thornburg Mortgage Asset Corp. 17,391
1,590 Town & Country Trust 28,521
2,378 Trammell Crow Company (a) 27,644
1,102 Trenwick Group Inc. 18,665
1,276 Triad Guaranty Inc. (a) 29,029
2,494 Triangle Bancorp Inc. 48,321
1,593 Trust Company of New Jersey 36,440
5,308 Trustco Bank Corp. 70,331
3,723 UICI (a) 39,324
1,675 UMB Financial Corp. 63,243
1,375 Unistar Financial Service Corp. (a) 38,328
5,245 United Asset Management Corp. (a) 97,360
4,220 United Bankshares Inc. 100,753
3,205 United Community Financial Corp. (a) 31,850
10,091 United Dominion Realty Trust Inc. 99,649
739 United Fire & Casualty Co. 16,720
1,610 United National Bancorp 35,722
956 Urban Shopping Centers Inc. 25,932
984 USB Holding Company Inc. 15,682
1,277 USBancorp Inc. 15,005
4,193 UST Corp. 133,128
144 Value Line Inc. 5,184
4,142 W Holding Company Inc. 42,973
2,506 Walden Residential Properties Inc. 54,192
5,393 Washington Federal Inc. 106,512
3,505 Washington Real Estate Investment Trust 52,575
3,787 Webster Financial Corp. 89,231
2,578 Weingarten Realty Investors 100,381
1,953 Wellsford Real Properties Inc. (a) 16,600
2,018 Wesbanco Inc. 52,468
1,554 West Coast Bancorp Oregon 20,979
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
873 Westcorp Inc. $ 12,658
1,587 Western Properties Trust 15,176
2,863 Westfield America Inc. 35,251
389 WFS Financial Inc. (a) 8,218
2,234 Whitney Holding Corp. 82,798
1,712 WR Berkley Corp. 35,738
13,151 Wyndham International Inc. 38,631
906 Zenith National Insurance Corp. 18,686
-----------
14,882,550
-----------
Health Care (9.4%)
898 Abgenix Inc. (a) 118,985
306 Accredo Health Inc. (a) 9,409
2,018 Acuson Corp. (a) 25,351
1,876 Advance Paradigm Inc. (a) 40,451
1,604 Affymetrix Inc. (a) 272,179
1,335 Alaris Medical Inc. (a) 2,503
562 Albany Molecular Research Inc. (a) 17,141
1,163 Algos Pharmaceuticals Corp. (a) 12,793
2,313 Alkermes Inc. (a) 113,626
1,906 Alpharma Inc. 58,609
2,248 Alterra Healthcare Inc. (a) 18,687
2,078 AmeriPath Inc. (a) 17,014
4,810 Amerisource Health Corp. (a) 73,052
1,142 Anesta Corp. (a) 19,628
1,012 Applied Analytical Industries Inc. (a) 9,234
5,076 Apria Healthcare Group Inc. (a) 91,051
1,165 Arrow International Inc. 33,785
1,304 Aviron (a) 20,619
427 Bacou USA Inc. (a) 6,432
1,284 Barr Laboratories Inc. (a) 40,286
9,279 Beverly Enterprises Inc. (a) 40,596
2,609 Bindley Western Industries Inc. 39,298
5,098 Bio Technology General Corp. (a) 77,744
837 Bio-Rad Laboratories Inc. (a) 19,565
1,473 Biomatrix Inc. (a) 28,355
1,093 Capital Senior Living Corp. (a) 5,533
19,604 Caremark Rx Inc. (a) 99,245
857 Carematrix Corp. (a) 2,142
2,126 Carter Wallace Inc. 38,135
1,640 Celgene Corp. (a) 114,800
1,803 Cell Pathways Inc. (a) 16,678
2,855 Cephalon Inc. (a) 98,676
2,652 Cerner Corp. (a) 52,211
946 Chattem Inc. (a) 17,974
1,403 Chirex Inc. (a) 20,519
636 Closure Medical Corp. (a) 8,188
2,234 Columbia Laboratories Inc. (a) 16,755
1,538 Conmed Corp. (a) 39,796
1,385 Cooper Companies Inc. (a) 41,723
2,166 COR Therapeutics Inc. (a) 58,211
1,481 Corixa Corp. (a) 25,177
1,653 Coulter Pharmaceutical Inc. (a) 37,502
5,780 Covance Inc. (a) 62,496
</TABLE>
23-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
5,760 Coventry Health Care Inc. (a) $ 38,880
1,696 Cyberonics Inc. (a) 27,030
1,972 Cygnus Inc. (a) 35,989
1,734 Cytyc Corp. (a) 105,882
1,222 Datascope Inc. (a) 48,880
1,064 Diagnostic Products Corp. 26,068
4,357 Dura Pharmaceuticals Inc. (a) 60,726
2,109 Duramed Pharmaceuticals Inc. (a) 15,027
1,757 Eclipse Surgical Technologies Inc. (a) 12,958
1,313 EntreMed Inc. (a) 33,646
2,123 Enzo Biochem Inc. (a) 95,668
3,511 Enzon Inc. (a) 152,290
4,863 First Health Group Corp. (a) 130,693
3,996 Fisher Scientific International Inc. (a) 144,356
1,276 Geltex Pharmaceuticals Inc. (a) 16,349
4,333 Gilead Sciences Inc. (a) 234,524
996 Gliatech Inc. (a) 16,559
1,952 Guilford Pharmaceuticals Inc. (a) 33,184
2,595 Haemonetics Corp. (a) 61,793
1,916 Hanger Orthopedic Group Inc. (a) 19,160
2,420 Hemispherx Biopharma Inc. (a) 24,049
2,391 Henry Schein Inc. (a) 31,830
2,837 Hooper Holmes Inc. 73,053
2,279 Human Genome Sciences Inc. (a) 347,832
4,124 IDEC Pharmaceuticals Corp. (a) 405,183
3,924 IDEXX Laboratories Corp. (a) 63,274
1,410 IDX Systems Corp. (a) 44,062
2,532 Imclone Systems Inc. (a) 100,331
754 Impath Inc. (a) 19,180
2,387 Incyte Pharmaceuticals Inc. (a) 143,220
1,312 Inhale Therapeutic Systems Inc. (a) 55,842
4,553 Integrated Health Service Inc. 569
2,381 Invacare Corp. 47,769
426 Invitrogen Corp. (a) 25,560
2,857 ISIS Pharmaceuticals Inc. (a) 17,856
3,577 Jones Pharmaceutical Inc. 155,376
2,034 King Pharmaceuticals Inc. (a) 114,031
1,160 KV Pharmaceutical Co. (a) 24,868
6,291 Laboratory Corporation of America Holdings (a) 23,198
794 Landauer Inc. 17,369
2,414 Laser Vision Centers Inc. (a) 25,498
2,749 LCA Vision Inc. (a) 12,886
3,014 Lifepoint Hospital (a) 35,603
4,352 Ligand Pharmaceuticals Inc. (a) 56,032
3,779 Liposome Company Inc. (a) 46,116
1,958 Macrochem Corp. (a) 8,199
3,178 Magellan Health Services Inc. (a) 20,061
3,704 Matria Healthcare Inc. (a) 15,279
972 Medco Research Inc. (a) 29,221
2,764 Medicis Pharmaceutical Corp. (a) 117,643
3,529 Medquist Inc. (a) 91,092
2,045 Mentor Corp. 52,787
4,461 Mid Atlantic Medical Services Inc. (a) 37,082
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
3,550 Millennium Pharmaceuticals Inc. (a) $ 433,100
337 Mine Safety Appliances Company 21,568
5,355 NBTY Inc. (a) 61,917
1,541 NCS Healthcare Inc. (a) 3,708
1,167 Neurogen Corp. (a) 19,255
1,452 Novoste Corp. (a) 23,958
1,561 Ocular Sciences Inc. (a) 29,464
1,243 OnHealth Network Co. (a) 11,109
2,975 Organogenesis Inc. (a) 25,845
4,022 Orthodontic Centers of America Inc. (a) 48,013
1,452 Osteotech Inc. (a) 19,420
3,142 Owens & Minor Inc. 28,082
2,442 Parexel International Corp. (a) 28,846
1,644 Pathogenesis Corp. (a) 35,243
2,405 Patterson Dental Co. (a) 102,513
2,538 PE Corp. (a) 378,162
1,555 Pediatrix Medical Group Inc. (a) 10,885
2,717 Per Se Technologies Inc. (a) 22,840
6,012 Perrigo Co. (a) 48,096
1,798 Pharmaceutical Product Development Inc. (a) 21,351
1,582 Pharmaceutical Resources Inc. (a) 7,811
1,227 Pharmacyclics Inc. (a) 50,614
7,207 Phycor Inc. (a) 13,513
363 Priority Healthcare Corp. (a) 10,504
1,807 Protein Design Labs Inc. (a) 126,490
1,205 Province Healthcare Co. (a) 22,895
6,981 PSS World Medical Inc. (a) 65,883
2,807 Quest Diagnostics Inc. (a) 85,789
7,058 Quorum Health Group Inc. (a) 65,728
1,591 Regeneron Pharmaceutical Inc. (a) 20,285
4,415 Renal Care Group Inc. (a) 103,201
1,929 Res-Care Inc. (a) 24,595
1,501 Resmed Inc. (a) 62,667
3,075 Respironics Inc. (a) 24,504
3,331 Rexall Sundown Inc. (a) 34,351
708 Safescience Inc. (a) 8,231
1,476 Sangstat Medical Corp. (a) 43,911
474 Schein Pharmaceutical Inc. (a) 5,747
1,888 Serologicals Corp. (a) 11,328
8,657 Sicor Inc. (a) 67,092
2,612 Sierra Health Services Inc. (a) 17,468
2,442 Sola International Inc. (a) 33,883
6,627 Steris Corp. (a) 68,341
4,576 Summit Technology Inc. (a) 53,482
371 Sunquest Informations Systems Inc. (a) 5,008
1,834 Sunrise Assisted Living Inc. (a) 25,217
2,114 Sunrise Medical Inc. (a) 13,080
4,459 Sunrise Technologies International Inc. (a) 52,672
1,618 Supergen Inc. (a) 47,529
741 Superior Consultant Holdings Corp. (a) 10,559
918 Syncor International Corp. (a) 26,737
2,003 Techne Corp. (a) 110,290
2,549 Theragenics Corp. (a) 23,100
1,564 Thermo Cardiosystems Inc. (a) 10,264
</TABLE>
- ---------
24
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
7,356 Total Renal Care Holdings Inc. (a) $ 49,193
1,664 Transkaryotic Therapies Inc. (a) 64,064
1,038 Trex Medical Corp. (a) 2,919
3,308 Triad Hospital (a) 50,033
3,179 Triangle Pharmaceuticals Inc. (a) 40,731
2,330 Twinlab Corp. (a) 18,494
6,083 US Oncology Inc. (a) 30,035
2,980 Varian Medical Systems Inc. (a) 88,841
1,316 Ventana Medical Systems Inc. (a) 32,736
5,277 Ventas Inc. 22,097
2,501 Vertex Pharmaceuticals Inc. (a) 87,535
1,593 Vical Inc. (a) 47,690
633 Vital Signs Inc. 14,480
1,678 Wesley Jessen VisionCare Inc. (a) 63,554
1,256 West Pharmaceutical Services Inc. 38,857
-----------
8,931,170
-----------
Machinery & Manufacturing (1.5%)
5,885 AGCO Corporation (a) 79,080
2,104 Arch Chemicals Inc. (a) 44,053
2,536 Arvin Industries Inc. 71,959
1,493 Astec Industries Inc. (a) 28,087
921 ASV Inc. (a) 12,549
1,231 Bandag Inc. 30,775
3,397 Cadiz Land Inc. (a) 32,271
5,299 Catalytica Inc. (a) 71,868
2,003 Central Garden & Pet Co. (a) 20,781
883 Chemed Corp. 25,276
2,391 CLARCOR Inc. 43,038
1,274 Commercial Intertech Corp. 16,243
4,241 Cytec Industries Inc. (a) 98,073
2,103 Delco Remy International Inc. (a) 17,350
1,492 Dura Automotive Systems Corp. (a) 26,017
2,117 Fairchild Corp. (a) 19,185
4,547 Federal Signal Corp. 73,036
3,296 GenCorp Inc. 32,548
2,232 Kaman Corp. 28,737
2,176 Modine Manufacturing Co. 54,400
1,688 Monaco Coach Corp. (a) 43,150
691 Nacco Industries Inc. 38,394
4,020 Olin Corporation (a) 79,646
1,052 Oshkosh Truck Corporation (a) 30,837
3,065 Pittway Corp. (a) 137,350
1,075 Sequa Corporation Class A (a) 57,983
1,207 Stoneridge Inc. (a) 18,633
5,015 Timken Co. 102,494
1,162 Toro Company 43,357
4,158 Unova Inc. (a) 54,054
-----------
1,431,224
-----------
Materials & Processes (6.1%)
3,084 A. Schulman Inc. 50,308
1,380 ACX Technologies Inc. (a) 14,749
346 AEP Industries Inc. (a) 8,909
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,016 Aftermarket Technology Corp. (a) $ 24,066
4,237 Agribiotech Inc. (a) 10,063
6,076 Airgas Inc. (a) 57,722
1,906 Albany International Corp. (a) 29,550
2,437 Albemarle Corp. 46,760
706 Alltrista Corp. (a) 15,620
2,602 Amcol International Corp. 41,957
1,485 American Business Products Inc. 17,356
1,561 American Superconductor Corp. (a) 43,708
455 American Woodwork Corp. (a) 11,034
2,380 Anicom Inc. (a) 10,115
2,385 Antec Corp. (a) 87,052
2,070 AO Smith Corp. 45,281
2,858 Apogee Enterprises Inc. 14,469
2,024 Applied Industrial Technologies Inc. 33,649
3,136 AptarGroup Inc. 78,792
1,730 Barnes Group Inc. 28,221
2,440 Belden Inc. 51,240
2,638 BMC Industries Inc. 12,860
2,055 Brady Corp. Class A 69,742
1,594 Brush Wellman Inc. 26,799
2,514 Buckeye Technologies Inc. (a) 37,396
5,326 Burlington Industries Equity Inc. (a) 21,304
635 Bush Boake Allen Inc. (a) 15,597
531 Butler Manufacturing Co. 11,848
3,295 Calgon Carbon Corp. 19,564
2,333 Cambrex Corp. 80,343
2,442 Caraustar Industries Inc. 58,608
467 Carbo Ceramics Inc. 10,216
1,778 Carpenter Technology Corp. 48,784
852 Centex Construction Products Inc. 33,228
1,805 Chemfirst Inc. 39,484
2,107 Chesapeake Corp. 64,263
11,309 CK Witco Corp. (a) 151,258
1,064 Cleveland Cliffs Inc. 33,117
1,790 CMI Corp. (a) 12,642
6,133 Collins & Aikman Corp. (a) 35,265
2,959 Comfort Systems USA Inc. (a) 21,823
232 Compax International (a) 4,263
764 Crossmann Communities Inc. (a) 11,842
5,310 Dal-Tile International Inc. (a) 53,764
3,503 Delta & Pine Land Co. 60,865
1,259 Deltic Timber Corp. 27,541
2,233 Dexter Corp. 88,762
2,585 Earthshell Corp. (a) 10,663
1,911 Elcor Corp. 57,569
1,827 Exide Corp. 15,187
3,501 Ferro Corp. 77,022
1,812 Florida Rock Industries Inc. 62,401
1,582 Forest City Enterprises 44,296
5,206 Gaylord Container Corp. Class A (a) 35,466
1,536 Gentek Inc. (a) 16,032
2,057 Geon Co. 66,852
3,014 Georgia Gulf Corp. 91,739
</TABLE>
25-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,919 Granite Construction Inc. $ 35,382
1,315 Greif Brothers Corp. 39,121
3,125 Group Maintenance America Corp. (a) 33,398
3,929 Harsco Corp. (a) 124,746
1,728 Hayes Lemmerz International Inc. (a) 30,132
1,276 HB Fuller Company 71,376
1,503 Hexcel Corp. (a) 8,360
2,313 Hughes Supply Inc. 49,874
1,485 IMCO Recycling Inc. 18,748
2,003 Insituform Technology Inc. (a) 56,585
4,084 Interface Inc. 23,483
2,226 Intermet Corp. 25,877
1,387 International Specialty Products Inc. (a) 12,743
1,592 Ionics Inc. (a) 44,775
2,291 IT Group Inc. (a) 21,049
417 iTurf Inc. (a) 5,186
2,067 Ivex Packaging Corp. (a) 20,670
2,983 Kaydon Corp. 79,982
1,135 Kellstrom Industries Inc. (a) 10,357
534 Lawson Products Inc. 12,349
2,230 Lilly Industries Inc. 29,966
322 Liqui Box Corp. 15,939
2,229 Lone Star Technologies Inc. (a) 62,133
5,096 Longview Fibre Co. 72,618
1,477 Lydall Inc. (a) 9,785
4,815 MA Hanna Co. 52,664
1,553 MacDermid Inc. 63,770
3,666 Mascotech Inc. 46,512
1,488 Maverick Tube Corp. (a) 36,735
424 Maxxam Inc. (a) 18,179
343 Mestek Inc. (a) 6,946
1,831 Minerals Technologies Inc. 73,354
2,551 Mississippi Chemical Corp. 15,784
3,495 Mueller Industries Inc. (a) 126,694
1,554 Myers Industries Inc. 24,476
303 NCH Corp. 13,502
1,805 NCI Building Systems Inc. (a) 33,392
2,129 NL Industries Inc. 32,068
926 Nortek Inc. (a) 25,928
2,374 OM Group Inc. 81,755
4,071 Paxar Corporation (a) 34,349
2,547 PH Glatfelter Co. 37,091
436 Pitt-Des Moines Inc. (a) 10,736
2,049 Polymer Group Inc. (a) 37,394
2,543 Potlatch Corp. 113,481
1,382 Quanex Corp. 35,241
2,821 Quanta Services Inc. (a) 79,693
2,781 Rayonier Inc. 134,357
913 Republic Group Inc. 13,809
1,213 Rock-Tenn Company 17,892
744 Rogers Corp. (a) 28,458
946 Rouge Industries Inc. 7,450
4,537 Safeskin Corporation (a) 55,011
1,481 Schweitzer Mauduit International Inc. 19,901
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,855 Scotts Co. (a) $ 74,664
1,707 Service Experts Inc. (a) 9,922
2,081 Shorewood Packaging Corp. (a) 39,409
1,050 Silgan Holdings Inc. (a) 14,044
1,795 Simpson Industries Inc. 20,194
788 Simpson Manufacturing Company Inc. (a) 34,475
1,523 Spartech Corp. 49,117
1,249 SPS Technologies Inc. (a) 39,890
805 Standard Motor Products Inc. 12,981
1,166 Standex International Corp. 24,413
573 Stepan Co. 13,394
3,352 Suiza Foods Corp. (a) 132,823
1,916 Superior Industries International Inc. 51,373
692 Tejon Ranch Corp. 16,435
2,846 Terra Industries Inc. 4,625
3,386 Tetra Tech Inc. (a) 52,060
2,071 Texas Industries Inc. 88,147
1,590 Thomas Industries Inc. 32,496
1,283 TJ International Inc. 53,886
3,992 Tower Automotive Inc. (a) 61,626
1,974 Tredegar Industries Inc. 40,837
405 Trex Company Inc. (a) 10,834
1,485 Universal Forest Products Inc. 21,904
883 US Can Corp. (a) 17,550
2,798 US Plastic Lumber Corp. (a) 21,510
9,779 USEC Inc. (a) 68,453
2,350 Valence Technology Inc. (a) 44,650
1,764 Valmont Industries Inc. 28,334
1,341 Waste Connections Inc. (a) 19,361
1,737 Watsco Inc. 20,084
1,655 Watts Industries Inc. 24,411
5,118 Wausau-Mosinee Paper Corp. 59,817
1,482 Webb Corp. (a) 36,957
3,045 Wellman Inc. 56,713
1,281 Wolverine Tube Inc. (a) 18,094
6,502 WR Grace & Co. (a) 90,215
1,380 Wynns International Inc. 19,493
-----------
5,865,473
-----------
Mining & Metals (.8%)
1,064 AM Castle & Co. 12,635
13,036 Battle Mountain Gold Co. 26,887
12,859 Bethlehem Steel Corp. (a) 107,694
1,277 Commercial Metals Co. 43,338
761 Gibraltar Steel Corp. (a) 17,788
2,867 Kaiser Aluminum Corp. (a) 22,040
9,824 LTV Corp. 40,524
2,930 Metals USA Inc. (a) 24,905
1,934 National Steel Corp. 14,384
2,629 Oregon Steel Mills Inc. 20,868
1,861 Reliance Steel & Aluminum Co. 43,617
1,483 RTI International Metals Inc. (a) 11,122
1,347 Ryerson Tull Inc. 26,182
2,483 Southern Peru Copper Corp. 38,331
</TABLE>
- ---------
26
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
4,279 Steel Dynamics Inc. (a) $ 68,197
3,693 Stillwater Mining Co. (a) 117,714
1,826 Titanium Metals Corp. 8,217
7,324 Worthington Industries Inc. 121,304
-----------
765,747
-----------
Oil, Gas, & Other Energy (2.9%)
1,667 Arch Coal Inc. 18,858
1,095 Atwood Oceanics Inc. (a) 42,294
2,805 Barrett Resources Corporation (a) 82,572
1,404 Basin Exploration Inc. (a) 24,746
1,094 Belco Oil & Gas Corp. (a) 6,017
1,805 Berry Petroleum Co. Class A 27,301
2,231 Cabot Oil & Gas Corp. 35,835
514 Cal Dive International Inc. (a) 17,026
7,627 Chesapeake Energy Corp. (a) 18,114
4,748 Cross Timbers Oil Co. 43,029
888 Dril-Quip Inc. (a) 26,973
2,628 Eastern Enterprises 150,946
4,249 EEX Corp. (a) 12,481
3,237 Equitable Resources Inc. 108,035
6,119 Ethyl Corp. 24,094
3,222 Forest Oil Corp. (a) 42,490
2,832 Friede Goldman Inc. (a) 19,647
6,014 Global Industries Ltd. (a) 51,871
16,156 Grey Wolf Inc. (a) 46,449
2,845 Hanover Compressor Co. (a) 107,399
12,668 Harken Energy Corp. (a) 9,501
4,830 Helmerich & Payne Inc. 105,354
1,595 HS Resources Inc. (a) 27,514
1,615 IRI International Corp. (a) 6,460
8,200 Key Energy Group Inc. (a) 42,538
1,911 Louis Dreyfus Natural Gas Corp. (a) 34,637
5,601 Marine Drilling Companies Inc. (a) 125,672
1,356 McMoran Exploration Company (a) 28,646
2,672 Meridian Resource Corp. (a) 8,183
1,992 Mitchell Energy & Development Corp. 43,949
4,807 National Oilwell Inc. (a) 75,410
3,606 Newfield Exploration Co. (a) 96,461
6,795 Newpark Resources Inc. (a) 41,619
1,732 Nuevo Energy Co. (a) 32,475
2,019 Oceaneering International Inc. (a) 30,159
1,213 Octel Corporation (a) 12,585
3,084 Oneok Inc. 77,486
6,357 Parker Drilling Co. (a) 20,263
3,186 Patterson Energy Inc. (a) 41,418
7,686 Pennzoil-Quaker State Co. 78,301
9,832 Pioneer National Resource Co. (a) 87,874
1,584 Plains Resources Inc. (a) 19,800
3,904 Pogo Producing Co. 80,032
5,489 Pride International Inc. (a) 80,277
1,405 RPC Inc. 8,079
1,209 Seacor Smit Inc. (a) 62,566
2,436 Seitel Inc. (a) 16,443
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,062 St. Mary Land & Exploration Co. $ 26,285
1,614 Stone Energy Corp. (a) 57,499
1,784 Swift Energy Co. (a) 20,516
2,613 Syntroleum Corp. (a) 21,231
3,185 Tesoro Petroleum Corp. (a) 36,827
847 The Houston Exploration Co. (a) 16,781
266 Thermo Ecotek Corp. (a) 1,413
2,654 Tom Brown Inc. (a) 35,497
2,554 TransMontaigne Oil Co. (a) 17,878
2,881 Tuboscope Inc. (a) 45,736
1,342 UTI Energy Corp. (a) 30,950
4,845 Valero Energy Corp. (a) 96,294
5,945 Varco International Inc. (a) 60,565
2,231 Veritas DGC Inc. (a) 31,234
4,326 Vintage Petroleum Inc. 52,182
-----------
2,750,767
-----------
Technology (31.0%)
2,004 3Dfx Interactive Inc. (a) 19,664
894 Aavid Thermal Technologies Inc. (a) 21,959
348 About.com Inc. (a) 31,233
3,991 Acclaim Entertainment Inc. (a) 20,454
1,004 ACT Networks Inc. (a) 9,350
2,002 Actel Corp. (a) 48,048
2,284 Activision Inc. (a) 34,974
2,376 Actuate Corporation (a) 101,871
2,799 ACTV Inc. (a) 127,879
1,506 Adaptive Broadband Corp. (a) 111,162
451 AdForce Inc. (a) 32,190
1,990 Adtran Inc. (a) 102,361
1,920 Advanced Digital Information Corp. (a) 93,360
930 Advanced Energy Industries Inc. (a) 45,803
7,050 Advanced Fibre Communications (a) 315,047
838 Advantage Learning Systems Inc. (a) 9,375
1,245 Advent Software Inc. (a) 80,225
1,769 Aeroflex Inc. (a) 18,353
546 Allaire Corporation (a) 79,170
2,758 Allen Telecom Inc. (a) 31,889
2,377 Alliance Semiconductor Corp. (a) 39,666
1,629 Alpha Industries Inc. (a) 93,362
4,182 American Management Systems Inc. (a) 131,210
1,639 American Xtal Technology Inc. (a) 28,580
3,184 Ametek Inc. 60,695
8,405 Amkor Technology Inc. (a) 237,441
4,432 Ampex Corp. (a) 24,099
1,593 Amphenol Corp. (a) 106,034
1,125 Anacomp Inc. (a) 20,461
1,791 Anadigics Inc. (a) 84,513
646 Analogic Corp. 21,318
2,121 Analysts International Corp. 26,513
2,687 Ancor Communications Inc. (a) 182,380
8,040 Andrew Corp. (a) 152,258
2,124 Anixter International Inc. (a) 43,808
1,766 Apex Inc. (a) 56,954
</TABLE>
27-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
412 AppliedTheory Corp. (a) $ 11,433
1,399 ARDENT Software Inc. (a) 54,561
1,057 Arguss Holdings Inc. (a) 13,741
3,278 Artesyn Technologies Inc. (a) 68,838
2,330 Ashton Technology Group Inc. (a) 14,999
4,680 Aspect Communications (a) 183,105
2,248 Aspect Development Inc. (a) 153,988
2,443 Aspen Technology Inc. (a) 64,587
1,990 ATMI Inc. (a) 65,794
2,508 Auspex Systems Inc. (a) 25,707
802 autobytel.com inc. (a) 12,180
653 Autoweb.com Inc. (a) 7,101
3,290 Avant! Corp. (a) 49,350
2,210 Avid Technology Inc. (a) 28,868
1,099 AVT Corp. (a) 51,653
1,572 Aware Inc. (a) 57,182
2,777 AXENT Technologies Inc. (a) 58,317
2,409 Banyan Systems Inc. (a) 48,180
1,130 Barra Inc. (a) 35,878
1,490 Bell and Howell Co. (a) 47,401
1,573 Benchmark Electronics Inc. (a) 36,081
700 Best Software Inc. (a) 20,650
2,340 Beyond.com Corp. (a) 18,281
1,661 Bindview Development Corp. (a) 82,531
1,822 Black Box Corp. (a) 122,074
719 Bottomline Technologies Inc. (a) 25,884
5,205 Brightpoint Inc. (a) 68,316
1,007 Brio Technology Inc. (a) 42,294
966 BriteSmile Inc. (a) 7,849
5,385 Broadvision Inc. (a) 915,787
1,119 Brooks Automation Inc. (a) 36,437
1,116 Brooktrout Technology Inc. (a) 20,716
3,768 Burr-Brown Corp. (a) 136,119
1,272 C&D Technologies Inc. 54,060
878 C-COR.net Inc. (a) 67,277
3,914 C-Cube Microsystems Inc. (a) 243,647
2,761 Cable Design Technologies Corp. (a) 63,503
879 CACI International Inc. (a) 19,887
668 CAIS Internet Inc. (a) 23,714
5,061 Cambridge Technology Partners (a) 132,851
959 Carrier Access Corp. (a) 64,553
449 Catapult Communications Corp. (a) 4,462
2,236 CCC Information Services Group Inc. (a) 38,292
3,294 CellStar Corporation (a) 32,528
5,128 CHS Electronics Inc. (a) 5,769
4,413 Ciber Inc. (a) 121,358
5,880 Cirrus Logic Inc. (a) 78,278
2,138 Clarify Inc. (a) 269,388
3,431 Cognex Corporation (a) 133,809
339 Cognizant Technology Solutions Corp. (a) 37,057
2,337 Coherent Inc. (a) 62,515
1,912 Cohu Inc. 59,272
2,005 Coinstar Inc. (a) 28,070
1,663 Com21 Inc. (a) 37,314
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
4,792 Commscope Inc. (a) $ 193,178
2,359 Complete Business Solutions Inc. (a) 59,270
4,565 Compucom Systems Inc. (a) 18,831
3,015 Computer Horizons Corp. (a) 48,805
2,299 Computer Network Technology (a) 52,733
1,617 Computer Task Group Inc. 23,952
1,288 Concord Communications Inc. (a) 57,155
1,338 Concur Technologies Inc. (a) 38,802
4,743 Concurrent Computer Corp. (a) 88,635
693 CoStar Group Inc. (a) 24,861
1,399 Cotelligent Group Inc. (a) 7,520
2,117 Credence Systems Corp. (a) 183,121
2,466 Cree Research Inc. (a) 210,535
784 CTC Communications Group Inc. (a) 30,588
2,660 CTS Corporation 200,498
531 Cubic Corporation 11,616
1,499 Cybercash Inc. (a) 13,866
1,388 Cyberian Outpost Inc. (a) 13,793
1,059 Cybex Computer Products Corp. (a) 42,890
2,758 Cymer Inc. (a) 126,868
10,309 Cypress Semiconductor Corp. (a) 333,754
2,927 Dallas Semiconductor Corp. 188,609
3,001 Data Broadcasting Corp. (a) 24,758
957 Data Transmission Network Corp. (a) 16,508
1,597 Datastream Systems Inc. (a) 39,226
1,018 DBT Online Inc. (a) 24,814
2,996 Dendrite International Inc. (a) 101,490
6,154 Digital Microwave Corp. (a) 144,234
1,484 Digital River Inc. (a) 49,436
2,966 DII Group Inc. (a) 210,493
2,178 Dionex Corp. (a) 89,706
1,433 Documentum Inc. (a) 85,801
1,194 DSP Group Inc. (a) 111,042
458 Dupont Photomasks Inc. (a) 22,099
624 EarthWeb Inc. (a) 31,395
1,784 Echelon Corp. (a) 34,900
3,420 Eclipsys Corp. (a) 87,638
900 eFax.com Inc. (a) 6,497
2,179 Egghead.com Inc. (a) 35,273
1,274 Electro Scientific Industries Inc. (a) 93,002
1,913 Electroglas Inc. (a) 48,542
887 Emcore Corp. (a) 30,158
3,228 Emulex Corp. (a) 363,150
1,184 Engineering Animation Inc. (a) 10,360
1,564 Entrust Technologies Inc. (a) 93,742
4,026 Epicor Software Corp. (a) 20,382
473 EShare Technologies (a) 8,071
2,509 ESS Technology Inc. (a) 55,668
1,699 Esterline Technologies Corp. (a) 19,645
2,084 ETEC Systems Inc. (a) 93,520
940 Exar Corporation (a) 55,343
1,091 Excalibur Technologies Corp. (a) 22,502
1,042 Exchange Applications Inc. (a) 58,222
6,151 eLOT Inc. (a) 33,446
</TABLE>
- ---------
28
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,003 Factset Research Systems Inc. $ 79,864
3,190 FileNet Corp. (a) 81,345
847 FlashNet Communications Inc. (a) 5,241
314 Forrester Research Inc. (a) 21,627
426 Franklin Electric Company Inc. 29,900
2,333 FSI International Inc. (a) 26,830
534 General Binding Corp. 6,275
2,985 General Semiconductor Inc. (a) 42,350
888 Genesys Telecommunications Laboratories Inc. (a) 47,952
1,207 Genlyte Group Inc. (a) 25,800
2,674 Genrad Inc. (a) 43,118
1,908 Gerber Scientific Inc. 41,857
6,156 Glenayre Technologies Inc. (a) 69,640
674 Global Imaging Systems Inc. (a) 8,257
563 Global Sports Inc. (a) 7,073
802 Globix Corp. (a) 48,120
2,048 Go2net Inc. (a) 178,176
1,034 Great Plains Software Inc. (a) 77,292
3,360 GT Interactive Software Corp. (a) 5,565
3,712 Gtech Holdings Corp. (a) 81,664
1,313 Hadco Corporation (a) 66,963
3,822 Harbinger Corp. (a) 121,587
1,017 Harmon Industries Inc. 12,331
2,594 Harmonic Inc. (a) 246,268
2,168 Helix Technology Corp. 97,154
688 hi/fn inc. (a) 26,660
2,397 HNC Software Inc. (a) 253,483
2,413 Hutchinson Technology Inc. (a) 51,276
1,209 Hypercom Corporation (a) 12,090
3,039 Hyperion Solutions Corp. (a) 132,197
2,225 Identix Inc. (a) 20,164
942 IGEN International Inc. (a) 28,025
3,629 Imation Corp. (a) 121,798
1,971 IMRglobal Corporation (a) 24,761
2,172 In Focus Systems Inc. (a) 50,363
4,216 Inacom Corp. (a) 30,830
2,666 InfoCure Corporation (a) 83,146
843 Informatica Corporation (a) 89,674
2,786 Information Resources Inc. (a) 25,771
18,851 Informix Corp. (a) 214,430
2,172 Infousa Inc. (a) 30,272
1,485 Innovex Inc. 13,922
4,475 Input/Output Inc. (a) 22,655
1,073 INSpire Insurance Solutions Inc. (a) 4,929
8,197 Integrated Device Technology Inc. (a) 237,713
1,803 Integrated Systems Inc. (a) 60,513
2,018 Inter-Tel Inc. 50,450
4,728 Interdigital Communications Corp. (a) 354,600
4,124 Intergraph Corp. (a) 19,331
5,096 International Rectifier Corp. (a) 132,496
2,811 InterVoice-Brite Inc. (a) 66,498
877 InterVu Inc. (a) 92,085
1,368 Intraware Inc. (a) 108,072
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
26,515 Iomega Corp. (a) $ 89,488
804 IPC Communications Inc. (a) 57,084
2,341 ISS Group Inc. (a) 166,504
1,294 iVillage Inc. (a) 26,204
1,315 Jack Henry & Associates Inc. 70,599
2,031 JDA Software Group Inc. (a) 33,258
612 Juno Online Services Inc. (a) 21,994
3,719 KEMET Corporation (a) 167,587
2,793 Kent Electronics Corp. (a) 63,541
6,432 Komag Inc. (a) 20,100
2,456 Kopin Corp. (a) 103,152
1,222 Kronos Inc. (a) 73,320
1,763 Lasersight Inc. (a) 17,630
329 Latitude Communications Inc. (a) 8,595
4,426 Lattice Semiconductor Corp. (a) 208,575
994 Launch Media Inc. (a) 18,824
3,394 Learn2.com Inc. (a) 11,137
1,871 Littelfuse Inc. (a) 45,401
3,542 LTX Corp. (a) 79,252
2,548 Magnetek Inc. (a) 19,588
402 Maker Communications Inc. (a) 17,186
524 Manhattan Associates Inc. (a) 3,865
2,012 Manugistics Group Inc. (a) 65,013
1,724 MAPICS Inc. (a) 21,766
447 MapQuest.com Inc. (a) 10,085
4,875 Mark IV Industries Inc. 86,227
301 MarketWatch.com Inc. (a) 10,987
3,426 Mastech Corporation (a) 84,794
6,140 Maxtor Corp. (a) 44,515
929 Maxwell Technologies Inc. (a) 9,290
725 Mechanical Technology Inc. (a) 16,856
3,224 MEMC Electronic Materials Inc. (a) 39,494
6,609 Mentor Graphics Corp. (a) 87,156
1,994 Mercury Computer Systems Inc. (a) 69,790
3,775 Mercury Interactive Corp. (a) 407,464
8,115 Merisel Inc. (a) 10,651
2,552 MessageMedia Inc. (a) 35,888
3,461 Methode Electronics Inc. 111,185
1,038 Metricom Inc. (a) 81,613
637 Metro Information Services Inc. (a) 15,288
929 Miami Computer Supply Corp. (a) 34,489
2,802 Micrel Incorporated (a) 159,539
971 Micromuse Inc. (a) 165,070
3,410 Micron Electronics Inc. (a) 37,936
1,592 Micros Systems Inc. (a) 117,808
3,822 MicroStrategy Inc. (a) 802,620
2,937 Midway Games Inc. (a) 70,304
1,150 MIPS Technologies Inc. (a) 59,800
680 MKS Instruments Inc. (a) 24,565
3,086 MMC Networks Inc. (a) 106,081
914 Molecular Devices Corp. (a) 47,528
979 Mpath Interactive Inc. (a) 26,066
2,332 MRV Communications Inc. (a) 146,625
2,841 MTI Technology Corp. (a) 104,762
</TABLE>
29-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,005 MTS Systems Corp. $ 15,539
1,107 Multex.com Inc. (a) 41,651
3,142 National Computer Systems Inc. 118,218
2,338 National Instruments Corp. (a) 89,429
761 National Processing Inc. (a) 6,754
1,224 Navarre Corporation (a) 7,038
852 NBCI Internet Incorporated (a) 65,817
2,456 NeoMagic Corporation (a) 26,863
666 NEON Systems Inc. (a) 26,141
1,027 Net Perceptions Inc. (a) 43,134
699 NetObjects Inc. (a) 11,534
729 Netopia Inc. (a) 39,594
2,123 Network Equipment Technologies Inc. (a) 25,078
1,200 Network Peripherals Inc. (a) 56,700
1,575 NVIDIA Corporation (a) 73,927
1,734 Oak Industries Inc. (a) 184,021
497 Omega Research Inc. (a) 2,982
3,296 Omnova Solutions (a) 25,544
1,815 OneMain.com Inc. (a) 27,225
604 ONYX Software Corporation (a) 22,348
2,760 Open Market Inc. (a) 124,545
1,217 Optical Coating Laboratory Inc. (a) 360,232
6,280 P-COM Inc. (a) 55,539
6,605 Pairgain Technologies Inc. (a) 93,708
900 Park Electrochemical Corp. 23,906
277 pcOrder.com Inc. (a) 14,127
1,203 Pegasus Systems Inc. (a) 72,556
2,841 Pegasystems Inc. (a) 31,961
2,164 PeopleSoft Inc. (a) 46,120
2,482 Peregrine Systems Inc. (a) 205,075
4,555 PerkinElmer Inc. 189,887
1,540 Pervasive Software Inc. (a) 26,084
2,396 Phoenix Technologies Ltd. (a) 37,887
2,117 Photronics Inc. (a) 60,599
3,931 Picturetel Corp. (a) 16,952
2,691 Pinnacle Holdings Inc. (a) 114,031
2,568 Pioneer Standard Electronics Inc. 37,076
1,698 Plantronics Inc. (a) 121,513
1,732 Plexus Corp. (a) 76,208
1,298 PLX Technology Inc. (a) 24,581
2,078 Polycom Inc. (a) 132,343
2,216 Power Integrations Inc. (a) 106,230
1,087 Power-One Inc. (a) 49,798
1,429 Powerwave Technologies Inc. (a) 83,418
2,100 Premisys Communications Inc. (a) 21,000
1,900 PRI Automation Inc. (a) 127,538
1,977 Primark Corporation (a) 54,985
1,503 Progress Software Corp. (a) 85,295
1,308 Project Software & Development Inc. (a) 72,594
971 Proxicom Inc. (a) 120,707
1,152 Proxim Inc. (a) 126,720
1,751 ProxyMed Inc. (a) 17,072
1,766 PubliCARD Inc. (a) 11,589
1,114 QRS Corp. (a) 116,204
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
2,240 QuadraMed Corporation (a) $ 19,530
1,036 Radiant Systems Inc. (a) 41,634
1,027 RadiSys Corp. (a) 52,377
3,209 Rare Medium Group Inc. (a) 109,507
2,757 Rayovac Corp. (a) 52,038
665 Razorfish Inc. (a) 63,258
4,559 Read-Rite Corp. (a) 21,655
2,113 Remec Inc. (a) 53,882
2,346 Remedy Corporation (a) 111,142
3,628 Renaissance Worldwide Inc. (a) 26,757
3,611 RSA Security Inc. (a) 279,853
383 RWD Technologies Inc. (a) 3,974
5,299 S3 Inc. (a) 61,270
2,990 Saga Systems Inc. (a) 59,613
1,233 Sagent Technology Inc. (a) 36,913
382 SalesLogix Corp. (a) 15,686
1,213 Sanchez Computer Associates Inc. (a) 49,960
2,035 Sandisk Corporation (a) 195,869
1,732 Santa Cruz Operation Inc. (a) 52,610
2,398 Sawtek Inc. (a) 159,617
1,239 SCM Microsystems Inc. (a) 79,219
3,340 S1 Corporation (a) 260,938
3,006 Semtech Corporation (a) 156,688
863 SERENA Software Inc. (a) 26,699
3,244 Silicon Valley Group Inc. (a) 57,581
146 Siliconix Incorporated (a) 19,199
323 Silknet Software Inc. (a) 53,537
1,751 Sipex Corporation (a) 43,009
1,536 SLI Inc. (a) 20,832
1,558 SoftNet Systems Inc. (a) 39,145
2,446 SpeedFam-IPEC Inc. (a) 31,645
1,548 SportsLine USA Inc. (a) 77,594
782 SPSS Inc. (a) 19,746
1,586 Spyglass Inc. (a) 60,144
1,245 SS&C Technologies Inc. (a) 8,093
3,568 Structural Dynamics Research Corp. (a) 45,492
2,367 SVI Holdings Inc. (a) 28,404
8,016 Sybase Inc. (a) 136,272
2,188 Sykes Enterprises Inc. (a) 95,999
489 Syntel Inc. (a) 7,916
3,189 Systems & Computer Technology Corp. (a) 51,821
1,169 Technitrol Inc. 52,021
4,136 Technology Solutions Co. (a) 135,454
2,735 TEKELEC (a) 61,538
4,356 Tektronix Inc. 169,340
1,132 Telescan Inc. (a) 27,946
2,155 TeleTech Holdings Inc. (a) 72,630
446 TenFold Corporation (a) 17,812
1,441 Terayon Communication Systems (a) 90,513
3,612 The Titan Corporation (a) 170,216
1,073 theglobe.com inc. (a) 8,986
1,671 Thermedics Inc. (a) 9,086
236 Thermo Bioanalysis Corp. (a) 4,337
420 Thermo Optek Corp. (a) 4,778
</TABLE>
- ---------
30
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
557 ThermoQuest Corporation (a) $ 5,744
518 TheStreet.com Inc. (a) 9,939
1,782 THQ Incorporated (a) 41,320
1,500 Towne Services Inc. (a) 6,000
1,192 Track Data Corporation (a) 12,144
3,225 Transaction Systems Architects Inc. (a) 90,300
2,582 TranSwitch Corporation (a) 187,356
2,128 Trimble Navigation Ltd. (a) 46,018
1,430 TriQuint Semiconductor Inc. (a) 159,088
1,531 TSI International Software Ltd. (a) 86,693
1,127 Tut Systems Inc. (a) 60,435
3,760 Tyler Technologies Inc. (a) 20,680
4,475 UCAR International Inc. (a) 79,711
2,121 Ultratech Stepper Inc. (a) 34,201
474 Unigraphics Solutions Inc. (a) 12,798
1,470 USinternetworking Inc. (a) 102,716
3,009 Varian Inc. (a) 67,703
3,037 Varian Semiconductor Equipment Associates
Inc. (a) 103,258
866 Veeco Instruments Inc. (a) 40,540
2,864 Verity Inc. (a) 121,899
3,334 VerticalNet Inc. (a) 546,776
1,807 Vicor Corporation (a) 73,184
2,592 Visio Corporation (a) 123,120
2,020 Visual Networks Inc. (a) 160,085
3,857 Wallace Computer Services Inc. 64,123
547 Watkins-Johnson Company 21,880
3,965 Wave Systems Corp. (a) 47,332
2,083 WAVO Corporation (a) 8,072
3,648 Weblink Wireless Inc. (a) 56,544
669 WebTrends Corporation (a) 54,189
3,061 Wesco International Inc. (a) 27,166
1,677 Westell Technologies Inc. (a) 18,028
8,882 Western Digital Corp. (a) 37,193
3,439 Wind River Systems Inc. (a) 126,383
812 Woodward Governor Company 22,330
1,087 WorldGate Communications Inc. (a) 51,700
1,108 X-ceed Inc. (a) 45,982
2,101 Xircom Inc. (a) 157,575
1,472 ZixIt Corporation (a) 58,328
1,014 Zomax Incorporated (a) 45,884
-----------
29,576,489
-----------
Transportation (2.7%)
2,657 AAR Corp. 47,660
3,252 Air Express International Corp. 105,080
4,757 Airborne Freight Corp. 104,654
5,394 Airtran Holdings Inc. (a) 24,442
2,433 Alaska Air Group Inc. (a) 85,459
4,258 Alexander & Baldwin Inc. 97,136
3,297 America West Holdings Corp. (a) 68,413
2,096 American Freightways Corp. (a) 33,929
347 Amtran Inc. (a) 6,723
1,770 Arctic Cat Inc. 17,700
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,910 Arnold Industries Inc. $ 26,859
1,102 Atlantic Coast Airlines Holdings Inc. (a) 26,173
1,430 Atlas Air Inc. (a) 39,236
1,764 Aviall Inc. (a) 14,443
2,155 Avis Rent A Car Inc. (a) 55,087
4,065 CH Robinson Worldwide Inc. 161,584
1,220 Circle International Group Inc. 27,145
1,645 Coachmen Industries Inc. 24,881
2,021 Consolidated Freightways Corp. (a) 16,042
773 Covenant Transport Inc. (a) 13,431
1,476 Eagle USA Airfreight Inc. (a) 63,653
3,017 Florida East Coast Industries Inc. 125,960
909 Forward Air Corp. (a) 39,428
1,975 Fritz Companies Inc. (a) 20,738
1,668 Frontier Airlines Inc. (a) 18,974
1,699 Heartland Express Inc. (a) 26,759
669 Hub Group Inc. (a) 13,380
2,124 JB Hunt Transport Services Inc. 29,404
2,407 Kirby Corp. (a) 49,344
684 Knight Transportation Inc. (a) 11,714
959 Landstar Systems Inc. (a) 41,057
2,893 Mesa Air Group Inc. (a) 13,742
1,218 Mesaba Holdings Inc. (a) 13,931
1,431 Midwest Express Holdings Inc. (a) 45,613
3,862 Miller Industries Inc. (a) 11,103
887 MS Carriers Inc. (a) 21,177
3,212 Newport News Shipbuilding Inc. 88,330
2,123 Offshore Logistics Inc. (a) 19,903
2,655 Overseas Shipholding Group Inc. 39,327
1,804 Pittston Bax Group 19,168
3,796 Pittston Brink's Group (a) 83,512
2,491 Polaris Industries Inc. 90,299
1,251 Roadway Express Inc. 27,053
873 Skyline Corp. 20,516
2,008 Skywest Inc. 56,224
3,640 Swift Transportation Inc. (a) 64,155
640 Thor Industries Inc. 19,480
5,834 Trans World Airlines Inc. (a) 16,408
3,968 Trinity Industries Inc. (a) 112,840
2,651 US Freightways Corp. 126,917
596 US Xpress Enterprises Inc. (a) 4,396
2,103 Wabash National Corp. 31,545
4,189 Wabtec Corp. 74,355
2,996 Werner Enterprises Inc. 42,131
1,459 Winnebago Industries Inc. 29,271
5,028 Wisconsin Central Transportation Co. (a) 67,564
2,484 Yellow Corp. (a) 41,762
-----------
2,617,210
-----------
Utilities & Energy (5.0%)
1,572 Aerial Communications Inc. (a) 95,696
5,630 AGL Resources Inc. 95,710
1,512 American Mobile Satellite Corp. (a) 31,847
870 American States Water (a) 31,320
</TABLE>
31-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- -----------
<C> <S> <C>
1,145 Aquarion Co. $ 42,365
3,076 Atmos Energy Corp. 62,866
3,528 Avista Corp. 54,464
2,073 Black Hills Corp. 45,995
1,166 California Water Service Group 35,344
1,126 Cascade Natural Gas Corp. (a) 18,157
1,275 CFW Communication Co. 44,306
1,662 CH Energy Group Inc. 54,846
2,186 Cleco Inc. 70,089
3,228 CMP Group Inc. 88,972
2,296 CommNet Cellular Inc. (a) 73,759
965 Commonwealth Telephone (a) 51,024
1,059 Connecticut Energy Corp. 41,169
2,194 Consol Energy Inc. (a) 22,214
870 CTG Resources Inc. 30,233
849 E 'Town Corp. 52,850
2,017 Eastern Utilities Associates 61,140
5,821 El Paso Electric Co. (a) 57,119
1,698 Empire District Electric Co. 38,417
2,649 Energen Corp. 47,848
1,222 Evergreen Resources Inc. (a) 24,135
2,955 General Cable Corp. 22,347
3,707 General Communications Inc. (a) 16,218
3,184 Hawaiian Electric Industries Inc. 91,938
3,725 IDACORP Inc. 99,877
2,937 Indiana Energy Inc. 52,132
4,532 Intermedia Communciations (a) 175,898
4,645 ITC Deltacom Inc. (a) 128,318
1,901 Laclede Gas Co. 41,109
3,721 Lincoln Electric Holdings Inc. 76,746
1,592 Madison Gas & Electric Co. 32,039
1,979 MasTec Inc. (a) 88,066
5,305 MDU Resources Group Inc. 106,100
1,739 New Jersey Resources Corp. 67,930
1,486 North Pittsburgh Systems Inc. 21,919
2,443 Northwest Natural Gas Co. 53,593
2,432 Northwestern Corp. 53,504
1,273 NUI Corp. 33,575
3,076 Omnipoint Corp. (a) 371,043
1,168 Otter Tail Power Co. 43,800
1,404 Pacific Gateway Exchange Inc. (a) 23,956
8,760 Paging Network Inc. (a) 7,118
3,455 Philadelphia Suburban Corp. 71,475
3,015 Piedmont Natural Gas Inc. 91,204
2,310 Powertel Inc. (a) 231,866
2,209 Primus Telecommunications (a) 84,494
3,561 Public Service Co. of New Mexico 57,866
2,018 Public Service Co. of North Carolina Inc. 65,207
3,614 RGS Energy Group Inc. 74,313
<CAPTION>
Shares or
Principal
amount Value
- ---------- -----------
<C> <S> <C>
2,120 Semco Energy Inc. $ 25,043
7,723 Sierra Pacific Resources (a) 133,704
2,335 SIGCORP Inc. 53,121
239 SJW Corp. (a) 28,740
745 South Jersey Industries Inc. 21,186
3,593 Southern Union Co. (a) 68,716
2,975 Southwest Gas Corp. 68,425
2,343 Southwestern Energy Co. 15,376
950 Superior Telecom Inc. 14,666
3,782 Talk.com Inc. (a) 67,131
1,231 TNP Enterprises Inc. 50,779
630 Trigen Energy Corp. 10,946
3,162 UGI Corp. 64,623
3,185 Unisource Energy Corporation Holding Co. (a) 35,632
1,373 United Illuminating Co. 70,538
2,757 United Water Resources Inc. 94,255
974 US LEC Corp. (a) 31,412
4,561 Washington Gas Light Co. 125,428
1,538 Western Gas Resources Inc. 20,282
3,702 Wicor Inc. 108,052
2,585 WPS Resources Corp. 64,948
1,093 Yankee Energy Systems Inc. 48,024
-----------
4,776,563
-----------
Total Common Stocks
(cost $83,863,898) 92,924,966
SHORT-TERM INVESTMENTS (2.4%)
$2,307,000 U.S. Treasury Bills, 5.020%,
January, 2000
(cost $2,298,720) 2,300,218
-----------
TOTAL INVESTMENTS (99.8%)
(cost $86,162,618) 95,225,184
CASH AND OTHER ASSETS, NET
OF LIABILITIES (0.2%) 178,116
-----------
NET ASSETS (100.0%) $95,403,300
===========
</TABLE>
Notes:
(a) Non-income producing security.
At December 31, 1999, net unrealized appreciation of $8,624,472 consisted of
gross unrealized appreciation of $21,168,033 and gross unrealized depreciation
of $12,543,561 based on cost of $86,600,712 for federal income tax purposes.
See accompanying notes to financial statements.
- ---------
32
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (97.8%)
Australia (2.2%)
12,223 Amcor Ltd. $ 57,028
MISCELLANEOUS FOOD PREPARATIONS
20,301 AMP Limited 223,449
LIFE INSURANCE
11,852 Austrailian Gas & Light Co. 69,296
PETROLEUM AND PETROLEUM PRODUCTS
5,357 Brambles Industries Ltd. 147,577
MISCELLANEOUS TRANSPORTATION SERVICES
26,529 Broken Hill Proprietary 347,018
MISCELLANEOUS METAL ORES
18,985 Coca-Cola 51,651
BEVERAGES
26,330 Coles Myer Ltd. 135,486
RETAIL STORES
22,810 CSR Ltd. 55,196
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
43,866 Fosters Brewing Group Ltd. 125,369
MISCELLANEOUS FOOD PREPARATIONS
9,011 Lend Lease Corporation Ltd. 125,761
BUSINESS CREDIT INSTITUTIONS
48,574 MIM Holdings Limited 49,876
METAL MINING SERVICES
21,918 National Australia Bank Ltd. 333,991
FOREIGN BANKING
9,900 Newcrest Mining Limited (a) 33,668
GOLD AND SILVER ORES
30,734 News Corporation Ltd. 297,281
CABLE AND OTHER PAY TELEVISION SERVICES
30,656 Normandy Mining Limited 21,652
GOLD AND SILVER ORES
16,594 North Limited 38,961
BITUMINOUS COAL AND LIGNITE MINING
12,184 Orica Limited 65,420
CHEMICALS AND ALLIED PRODUCTS
30,245 Pacific Dunlop 42,645
MISCELLANEOUS MANUFACTURING INDUSTRIES
19,936 Pioneer International Ltd. 59,846
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
4,312 Rio Tinto Ltd. 92,275
MISCELLANEOUS METAL ORES
20,712 Santos Ltd. 56,214
CRUDE PETROLEUM AND NATURAL GAS
112,621 Telstra Corporation 609,854
TELEPHONE COMMUNICATIONS
17,535 Western Mining Corp. Holding Ltd. 96,330
METAL MINING SERVICES
40,449 Westfield Trust 79,063
TRUSTS
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
28,186 Westpac Banking Corp. $ 193,683
FOREIGN BANKING
------------
3,408,590
------------
Austria (.2%)
801 Austria Mikro Systeme International (a) 25,493
MACHINERY, EQUIPMENT, AND SUPPLIES
1,748 Austrian Airline (a) 33,097
AIRLINES
1,605 Bank Austria AG 90,523
FOREIGN BANKING
624 OEMV AG 60,647
MISCELLANEOUS PRODUCTS OF PETROLEUM AND
COAL
559 Oest Elektrizatswirts Class A (a) 78,538
SERVICES
553 VA Technologie AG 36,481
MACHINERY, EQUIPMENT, AND SUPPLIES
------------
324,779
------------
Belgium (1.0%)
300 Barco Industries NV 41,998
ELECTRIC SERVICES
914 Bekaert SA 50,722
ELECTRIC SERVICES
950 Cimenteries CBR Cementbed 98,741
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,216 Delhaize LE PS 91,607
RETAIL STORES
781 Electrabel 255,640
ELECTRIC SERVICES
10,240 Fortis B 369,419
INSURANCE CARRIERS
544 GBL Group 109,578
HOLDING OFFICES
3,876 Kredietbank NPV (a) 208,849
FOREIGN BANKING
1,058 NV Union Miniere SA 41,131
METALS AND MINERALS, EXCEPT PETROLEUM
1,475 Solvay Et Cie Class A NPV 121,815
CHEMICALS AND ALLIED PRODUCTS
2,600 UCB BB 112,730
CHEMICALS AND ALLIED PRODUCTS
------------
1,502,230
------------
Denmark (.8%)
190 D/S 1912 Class B 223,714
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
</TABLE>
33-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
140 D/S Svendborg Class B $ 233,052
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
1,500 Danisco AS 58,466
MISCELLANEOUS MANUFACTURING INDUSTRIES
1,000 Den Danske Bank 109,624
FOREIGN BANKING
1,400 Novo Nordisk AS-B 185,684
DRUGS
3,500 Tele Danmark 260,052
TELEPHONE COMMUNICATIONS
1,600 Unidanmark 112,601
FOREIGN BANKING
------------
1,183,193
------------
Finland (2.9%)
2,100 Amer-Yhthymae OY Class A (a) 42,618
DOLLS, TOYS, GAMES AND SPORTING AND
ATHLETIC GOODS
4,400 Kesko OY Osake 55,836
MISCELLANEOUS BUSINESS SERVICES
17,900 Nokio OYJ 3,245,039
COMMUNICATIONS EQUIPMENT
4,100 Outokumpo OY 58,017
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
1,700 Sampo Insurance Co. Class A 59,412
INSURANCE AGENTS, BROKERS, AND SERVICE
10,800 Sonera Corporation (a) 740,195
TELEPHONE COMMUNICATIONS
1,700 Tientoenator Corporation 106,154
COMPUTER PROGRAMMING & DATA PROCESSING
4,500 UPM-Kymmene 181,287
PAPER AND PAPER PRODUCTS
------------
4,488,558
------------
France (9.3%)
3,310 Accor French (a) 158,781
SERVICES
1,299 Air Liquide French 217,438
MISCELLANEOUS CHEMICAL PRODUCTS
2,893 Alcatel 664,321
COMMUNICATIONS EQUIPMENT
5,622 Aventis 326,709
DRUGS
5,127 AXA Company 714,651
INSURANCE AGENTS, BROKERS, AND SERVICE
6,488 Banque National De Paris 598,550
COMMERCIAL BANKS
1,227 BIC 55,832
MISCELLANEOUS NON-DURABLE GOODS
456 Bouygues 289,794
MISCELLANEOUS BUSINESS SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
1,982 Canal Plus $ 288,447
RADIO AND TELEVISION BROADCASTING
STATIONS
1,198 Cap Gemini (a) 304,055
COMPUTER PROGRAMMING & DATA PROCESSING
5,123 Carrefour Supermarche 944,729
GROCERY STORES
1,262 Casino French (a) 144,515
SERVICES
1,351 Compagnie De Saint Goban 254,035
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
373 Eridania Beghin Say 40,121
MISCELLANEOUS FOOD PREPARATIONS
247 Essilor International 76,620
MISCELLANEOUS NON-DURABLE GOODS
14,967 France Telecom SA 1,979,220
TELEPHONE COMMUNICATIONS
1,019 Groupe Danone 240,151
MISCELLANEOUS FOOD PREPARATIONS
292 Imetal 43,525
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
971 L'Oreal 778,932
MISCELLANEOUS NON-DURABLE GOODS
1,519 Lafarge Coppee French 176,852
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,961 Lagardere Groupe 106,651
MISCELLANEOUS BUSINESS SERVICES
1,460 LVMH Company 653,905
MISCELLANEOUS FOOD PREPARATIONS
2,369 Michelin Class B 93,052
TIRES AND INNER TUBES
1,124 Pernod-Ricard 64,300
MISCELLANEOUS FOOD PREPARATIONS
785 Peugeot SA 178,204
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
1,738 Pinault-Printemps-Redoute SA 458,612
DEPARTMENT STORES
226 Sagem SA 157,055
COMMUNICATIONS EQUIPMENT
10,956 Sanofi-Synthelabo 456,160
DRUGS
2,354 Schneider SA 184,806
MISCELLANEOUS DURABLE GOODS
700 Sidel 72,263
MISCELLANEOUS DURABLE GOODS
1,540 Societe Generale Class A 358,284
FOREIGN BANKING
598 Sodexho Alliance 105,820
SERVICES
</TABLE>
- ---------
34
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
3,553 Suez Lyonnaise Des Eaux-Dumex $ 569,325
MISCELLANEOUS BUSINESS SERVICES
1,280 Suez-Lyonnaise Strips (a) 13
MISCELLANEOUS BUSINESS SERVICES
2,782 Thomson CSF 91,874
MISCELLANEOUS DURABLE GOODS
10,771 Total Fina SA 1,437,363
ELECTRIC, GAS, AND OTHER UTILITY
SERVICES
4,257 Usinor Sacilor 79,961
STEEL WORKS
1,297 Valeo 100,061
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
8,516 Vivendi 768,919
MISCELLANEOUS MANUFACTURING INDUSTRIES
------------
14,233,906
------------
Germany (9.7%)
950 Adidas Salomon AG 71,109
MISCELLANEOUS TEXTILE GOODS
1,450 AGIV AG 26,506
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
3,500 Allianz AG Holding 1,177,359
INSURANCE AGENTS, BROKERS, AND SERVICE
9,600 BASF AG 501,803
CHEMICALS AND ALLIED PRODUCTS
10,650 Bayer AG 506,274
CHEMICALS AND ALLIED PRODUCTS
6,050 Bayerische Hypo Vereinsbank 413,123
FOREIGN BANKING
1,800 Beiersdorf 121,462
CHEMICALS AND ALLIED PRODUCTS
14,808 Daimler Chrysler AG 1,148,369
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
8,855 Deutsche Bank AG 746,820
FOREIGN BANKING
44,421 Deutsche Telekom AG 3,124,995
COMMUNICATIONS SERVICES
7,700 Dresdner Bank AG 426,528
FOREIGN BANKING
1,050 Heidelberger Zement AG 81,428
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
1,400 Hochtief AG 52,311
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
2,250 Karstadt Quelle AG 91,550
DEPARTMENT STORES
2,100 Linde AG 116,114
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
5,370 Lufthansa AG $ 127,097
AIR TRANSPORTATION & COURIER SERVICES
2,300 MAN AG 86,867
MACHINERY, EQUIPMENT, AND SUPPLIES
7,450 Mannesmann AG 1,803,787
GENERAL INDUSTRIAL MACHINERY AND
EQUIPMENT
3,200 Merck KGAA 99,909
DRUGS
4,100 Metro AG 224,222
MISCELLANEOUS NON-DURABLE GOODS
2,620 Muenchener Rueckversicherungs
Namensaktie 667,600
INSURANCE CARRIERS
3,000 Preussag AG 166,331
STEEL WORKS
6,700 RWE AG 266,543
MISCELLANEOUS MANUFACTURING INDUSTRIES
950 SAP AG 466,915
COMPUTER PROGRAMMING & DATA PROCESSING
1,220 Schering AG 147,447
CHEMICALS AND ALLIED PRODUCTS
400 SGL Carbon AG (a) 25,984
CHEMICALS AND ALLIED PRODUCTS
8,750 Siemans Registered 1,119,196
MISCELLANEOUS INDUSTRIAL AND COMMERCIAL
MACHINERY
8,050 Thyssen Krupp 244,443
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,950 VEBA AG 339,485
MISCELLANEOUS MANUFACTURING INDUSTRIES
9,650 VIAG AG (a) 180,093
MISCELLANEOUS MANUFACTURING INDUSTRIES
4,650 Volkswagon AG 262,262
MOTOR VEHICLE DEALERS
------------
14,833,932
------------
Hong Kong (2.2%)
25,000 Bank of East Asia Hong Kong 69,467
FOREIGN BANKING
181,600 Cable & Wireless HKT Ltd. 524,461
COMMUNICATIONS SERVICES
57,000 Cathay Pacific Airways Ltd. 101,557
AIR TRANSPORTATION & COURIER SERVICES
33,000 Cheung Kong 419,212
LAND SUBDIVIDERS AND DEVELOPERS
76,000 Chinese Estates HL (a) 15,641
REAL ESTATE AGENTS AND MANAGERS
33,500 CLP Holdings Limited 154,281
UTILITIES REGULATION AND ADMINISTRATION
28,300 Hang Seng Bank 323,101
FOREIGN BANKING
</TABLE>
35-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
91,300 Hong Kong & China Gas $ 125,081
GAS PRODUCTION AND DISTRIBUTION
57,000 Hutchison Whampoa 828,586
MISCELLANEOUS BUSINESS SERVICES
24,344 Hysan Development Company 30,846
REAL ESTATE AGENTS AND MANAGERS
17,500 Johnson Electric Holdings 112,336
ELECTRICAL INDUSTRIAL APPARATUS
31,000 New World Development 69,787
LAND SUBDIVIDERS AND DEVELOPERS
74,000 Sino Land Company 42,602
REAL ESTATE AGENTS AND MANAGERS
36,000 Sun Hung Kai Properties 375,120
REAL ESTATE AGENTS AND MANAGERS
23,500 Swire Pacific Ltd. Class A 138,760
MISCELLANEOUS BUSINESS SERVICES
40,114 Wharf Holdings Ltd. 93,145
REAL ESTATE AGENTS AND MANAGERS
------------
3,423,983
------------
Ireland (.4%)
14,793 Allied Irish Banks PLC 168,356
FOREIGN BANKING
7,537 CRH PLC 161,686
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
8,220 Irish Permanent PLC 77,439
FOREIGN BANKING
23,850 Jefferson Smurfit Group 72,063
PAPER AND PAPER PRODUCTS
7,800 Kerry Group PLC 91,323
MISCELLANEOUS FOOD PREPARATIONS
------------
570,867
------------
Italy (4.2%)
23,537 Alitalia 56,063
AIR TRANSPORTATION & COURIER SERVICES
19,844 Assicurazione Generali 655,537
ACCIDENT AND HEALTH INSURANCE AND
MEDICAL SERVICE
69,363 Banca Intesa SPA 281,531
FOREIGN BANKING
46,500 Benetton Group 106,778
APPAREL, PIECE GOODS, AND NOTIONS
21,060 Beni Stabili (a) 7,424
COMMERCIAL BANKS
107,786 Enel SPA (a) 451,591
ELECTRIC SERVICES
117,700 ENI SPA 647,232
RETAIL STORES
8,300 Fiat 236,987
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
18,000 Italgas $ 68,164
CRUDE PETROLEUM AND NATURAL GAS
20,400 Mediaset SPA 317,228
RADIO AND TELEVISION BROADCASTING
STATIONS
13,670 Mediobanca Banca Di Credito 139,467
COMMERCIAL BANKS
5,820 Mediobanca SPA (a) 8,939
FOREIGN BANKING
56,040 Montedison SPA 91,715
MISCELLANEOUS CHEMICAL PRODUCTS
72,500 Olivetti (a) 209,931
OFFICE FURNITURE
45,400 Parmalat Finanziaria SPA 58,071
SERVICES
45,000 Pirelli SPA 123,502
RETAIL STORES
12,550 RAS SPA 125,892
UTILITIES REGULATION AND ADMINISTRATION
22,560 San Paolo - IMI SPA 306,511
COMMERCIAL BANKS
17,000 Sirti SPA 60,782
RETAIL STORES
100,900 Telecom Italia Mobile 1,126,982
COMMUNICATIONS SERVICES
26,400 Telecom Italia Mobile - DRNC 125,764
COMMUNICATIONS SERVICES
73,400 Telecom Italia SPA 902,034
COMMUNICATIONS SERVICES
75,847 Unicredito Italiano SPA 372,780
FOREIGN BANKING
------------
6,480,905
------------
Japan (27.6%)
2,300 ACOM Company Ltd. 225,208
MISCELLANEOUS BUSINESS SERVICES
1,490 Advantest Corp. 393,524
ELECTRICAL INDUSTRIAL APPARATUS
11,000 Ajinomoto Company Inc. 114,595
MISCELLANEOUS FOOD PREPARATIONS
4,000 Alps Electronics Co. 61,000
ELECTRICAL INDUSTRIAL APPARATUS
7,000 Amada Company Ltd. (a) 38,277
MACHINERY, EQUIPMENT, AND SUPPLIES
6,000 Amano Corp. 35,801
MACHINERY, EQUIPMENT, AND SUPPLIES
1,200 Aoyama Trading 25,707
RETAIL STORES
1,800 Arabian Oil Company 30,989
GAS PRODUCTION AND DISTRIBUTION
41,000 Asahi Bank Ltd. 252,667
FOREIGN BANKING
9,000 Asahi Breweries Ltd. 98,425
MISCELLANEOUS FOOD PREPARATIONS
</TABLE>
- ---------
36
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
23,000 Asahi Chemical Industry Co. $ 118,116
CHEMICALS AND ALLIED PRODUCTS
18,000 Asahi Glass Company Ltd. 139,275
GLASS PRODUCTS
15,000 Ashikaga Bank 29,932
FOREIGN BANKING
700 Autobacs Seven 22,938
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
900 Benesse Corp. 216,571
MISCELLANEOUS BUSINESS SERVICES
12,000 Bridgestone Corp. 264,110
MORTGAGE BANKERS AND BROKERS
13,000 Canon Inc. 516,287
ELECTRICAL INDUSTRIAL APPARATUS
42 Central Japan Railway (a) 263,347
RAILROADS
8,000 Chiyoda Corp. (a) 11,660
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,000 Citizen Watch Company Ltd. 38,149
MISCELLANEOUS ELECTRICAL MACHINERY,
EQUIPMENT, AND SUPPLIES
3,700 Credit Saison 64,423
RETAIL STORES
1,100 CSK Corp. 178,617
COMPUTER PROGRAMMING & DATA PROCESSING
14,000 Dai Nippon Ink & Chemical Inc. (a) 41,495
CHEMICALS AND ALLIED PRODUCTS
11,000 Dai Nippon Printing Company Ltd. 175,388
MISCELLANEOUS MANUFACTURING INDUSTRIES
5,000 Dai Nippon Screen (a) 29,834
ELECTRICAL INDUSTRIAL APPARATUS
13,000 Daiei Inc. (a) 51,502
RETAIL STORES
6,000 Daiichi Pharmaceutical 78,001
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
5,000 Daikin Industries Ltd. 67,984
MACHINERY, EQUIPMENT, AND SUPPLIES
8,000 Daimaru Inc. 27,076
RETAIL STORES
2,500 Daito Trust Construction 27,878
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
26,000 Daiwa Bank 76,300
FOREIGN BANKING
8,000 Daiwa House Industry 59,474
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
20,000 Daiwa Securities 312,824
MISCELLANEOUS INVESTING
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
13,000 Denso Corporation $ 310,280
MISCELLANEOUS TRANSPORTATION EQUIPMENT
57 East Japan Rail 307,219
MISCELLANEOUS TRANSPORTATION SERVICES
6,000 Ebaba Corporation 66,908
MACHINERY, EQUIPMENT, AND SUPPLIES
6,000 Eisai Company Ltd. 115,328
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
3,600 Fanuc Co. 458,144
ELECTRICAL INDUSTRIAL APPARATUS
51,000 Fuji Bank 495,383
FOREIGN BANKING
1,000 Fuji Maching Manufacturing Co. Ltd. 80,603
MACHINERY, EQUIPMENT, AND SUPPLIES
8,000 Fuji Photo Film 291,891
MOTION PICTURE PRODUCTION AND ALLIED
SERVICES
700 Fuji Soft ABC Inc. 54,778
COMPUTER PROGRAMMING & DATA PROCESSING
9,000 Fujikura Ltd. 35,743
NONFERROUS FOUNDRIES (CASTING)
29,000 Fujitsu Ltd. 1,321,921
COMMUNICATIONS EQUIPMENT
11,000 Furkukawa Electric 166,781
OIL AND GAS FIELD SERVICES
13,000 Gunma Bank 84,564
FOREIGN BANKING
27,000 Haseko Corporation (a) 12,941
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
700 Hirose Electronics Company Ltd. 156,872
ELECTRICAL INDUSTRIAL APPARATUS
48,000 Hitachi Ltd. 770,030
ELECTRICAL INDUSTRIAL APPARATUS
15,000 Honda Motor Company Ltd. 557,566
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
2,000 Hoya Corp. 157,488
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
39,000 Industrial Bank of Japan 375,769
FOREIGN BANKING
4,000 Isetan 29,346
RETAIL STORES
24,000 Ishikawajima-Harima Heavy Industries 27,703
MISCELLANEOUS TRANSPORTATION EQUIPMENT
6,000 ITO Yokado Co. 651,472
RETAIL STORES
22,000 Itochu Corp. 109,538
MISCELLANEOUS DURABLE GOODS
25,000 Japan Airlines 74,097
AIR TRANSPORTATION & COURIER SERVICES
</TABLE>
37-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
290 Japan Tobacco Inc. $ 221,833
CIGARETTES
14,000 Joyo Bank 64,365
FOREIGN BANKING
5,000 Jusco Co. 87,107
RETAIL STORES
300 Kadokawa Shoten Publishing (a) 100,949
MISCELLANEOUS PUBLISHING
16,000 Kajima Corp. 47,736
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
7,000 Kaneka Corporation 89,494
CHEMICALS AND ALLIED PRODUCTS
12,600 Kansai Electric Power 219,511
ELECTRIC SERVICES
10,000 KAO Corp. 285,141
CHEMICALS AND ALLIED PRODUCTS
25,000 Kawasaki Heavy Industries 33,257
MISCELLANEOUS TRANSPORTATION EQUIPMENT
48,000 Kawasaki Steel 85,925
STEEL WORKS
6,000 Kinden Corporation 46,073
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
27,000 Kinki Nippon Railway 108,286
MISCELLANEOUS TRANSPORTATION SERVICES
16,000 Kirin Brewery Company Ltd. 168,248
MISCELLANEOUS FOOD PREPARATIONS
4,000 Kokuyo Company Ltd. 53,213
MISCELLANEOUS MANUFACTURING INDUSTRIES
15,000 Komatsu Ltd. 68,962
MACHINERY, EQUIPMENT, AND SUPPLIES
3,000 Komori Corp. 57,195
MACHINERY, EQUIPMENT, AND SUPPLIES
900 Konami Company Ltd. 160,667
COMPUTER PROGRAMMING & DATA PROCESSING
4,000 Koyo Seiko Co. Ltd. 34,471
MACHINERY, EQUIPMENT, AND SUPPLIES
25,000 Kubota Corp. 95,617
MACHINERY, EQUIPMENT, AND SUPPLIES
3,000 Kurita Water Industries 47,657
MACHINERY, EQUIPMENT, AND SUPPLIES
2,800 Kyocera Corp. 725,814
ELECTRONIC COMPONENTS AND ACCESSORIES
10,000 Kyowa Hakko Kogyo 59,963
CHEMICALS AND ALLIED PRODUCTS
23,000 Marubeni Corp. 96,517
SERVICES
6,000 Marui Co. 89,563
RETAIL STORES
29,000 Matsushita Electric Industries 802,798
HOUSEHOLD AUDIO AND VIDEO EQUIPMENT
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
7,000 Minebea Company Ltd. $ 120,033
MISCELLANEOUS ELECTRICAL MACHINERY,
EQUIPMENT, AND SUPPLIES
31,000 Mitsubishi Chemical Corp. 109,166
CHEMICALS AND ALLIED PRODUCTS
23,000 Mitsubishi Corp. 177,512
MISCELLANEOUS BUSINESS SERVICES
31,000 Mitsubishi Electric 200,136
ELECTRICAL INDUSTRIAL APPARATUS
19,000 Mitsubishi Estate Company Ltd. 185,297
REAL ESTATE OPERATORS AND LESSORS
50,000 Mitsubishi Heavy 166,780
ENGINES AND TURBINES
31,000 Mitsubishi Materials Corp. 75,810
NONFERROUS FOUNDRIES (CASTING)
15,000 Mitsubishi Paper 20,102
PULP MILLS
19,000 Mitsubishi Trust 167,270
FOREIGN BANKING
4,000 Mitsubishi Warehouse Transport 25,511
PUBLIC WAREHOUSING AND STORAGE
23,000 Mitsui & Co. 160,862
MISCELLANEOUS DURABLE GOODS
26,000 Mitsui Engineering (a) 17,802
MISCELLANEOUS TRANSPORTATION EQUIPMENT
12,000 Mitsui Fudosan 81,229
REAL ESTATE OPERATORS AND LESSORS
13,000 Mitsui Marine & Fire Insurance 77,061
INSURANCE CARRIERS
10,000 Mitsui Mining & Smelting 47,246
NONFERROUS FOUNDRIES (CASTING)
23,000 Mitsui Trust & Banking 51,971
FOREIGN BANKING
10,000 Mitsukoshi (a) 35,215
RETAIL STORES
4,000 Murata Manufacturing Company Ltd. 939,059
ELECTRICAL INDUSTRIAL APPARATUS
8,000 Mycal Corp. 34,823
RETAIL STORES
1,300 Namco Ltd. 84,183
SERVICES
24,000 NEC Corp. 571,651
ELECTRICAL INDUSTRIAL APPARATUS
8,000 NGK Insulators Ltd. 59,395
GLASS PRODUCTS
1,000 Nichiei Co. Ltd. 21,716
MISCELLANEOUS BUSINESS SERVICES
500 Nidec Corporation 144,283
ELECTRICAL INDUSTRIAL APPARATUS
6,000 Nikon Corp. 176,074
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
</TABLE>
- ---------
38
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
2,100 Nintendo Corp. Ltd. $ 348,802
DOLLS, TOYS, GAMES AND SPORTING AND
ATHLETIC GOODS
3,000 Nippon Comsys Corp. 62,213
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
17,000 Nippon Express Co. 93,956
MISCELLANEOUS TRANSPORTATION SERVICES
17,000 Nippon Light Metal Co. 15,798
NONFERROUS FOUNDRIES (CASTING)
23,000 Nippon Mitsubishi Oil Corp. 101,241
CRUDE PETROLEUM AND NATURAL GAS
16,000 Nippon Paper Industries Co. 88,115
PULP MILLS
9,000 Nippon Sheet Glass (a) 46,660
GLASS PRODUCTS
89,000 Nippon Steel Corp. 208,073
STEEL WORKS
1,840 Nippon Telegraph and Telephone Corp. 3,149,760
COMMUNICATIONS SERVICES
23,000 Nippon Yusen Kabushiki Kaish 94,042
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
59,000 Nissan Motors (a) 232,006
MISCELLANEOUS TRANSPORTATION EQUIPMENT
7,000 Nisshinbo Industries Inc. 31,634
MISCELLANEOUS TEXTILE GOODS
3,000 Nitto Denko Corp. 149,956
ELECTRICAL INDUSTRIAL APPARATUS
28,000 Nomura Securities Company Ltd. 505,330
MISCELLANEOUS INVESTING
9,000 NSK Ltd. 61,538
MACHINERY, EQUIPMENT, AND SUPPLIES
12,000 Ohbayashi-Gumi Corp. 56,695
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
16,000 OJI Paper Company Ltd. 96,253
PULP MILLS
5,000 Olympus Optical 70,674
ANALYTICAL, OPTICAL, MEASURING &
CONTROLLING INSTRUMENTS
5,000 Omron Corp. 115,182
ELECTRICAL INDUSTRIAL APPARATUS
5,000 Onward Kashiyama Company Ltd. 68,473
MISCELLANEOUS TEXTILE GOODS
1,800 Oriental Land 154,593
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
1,100 Orix Corp. 247,696
MISCELLANEOUS BUSINESS SERVICES
38,000 Osaka Gas Company Ltd. 91,439
ELECTRIC SERVICES
3,000 Pioneer Electric Corp. 79,233
ELECTRICAL INDUSTRIAL APPARATUS
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
2,000 Promise Co. Ltd. $ 101,731
MORTGAGE BANKERS AND BROKERS
8,000 Renown Inc. (a) 19,564
MISCELLANEOUS TEXTILE GOODS
1,800 Rohm Company 739,509
ELECTRICAL INDUSTRIAL APPARATUS
60,000 Sakura Bank Ltd. 347,454
FOREIGN BANKING
7,000 Sankyo Company Ltd. 143,793
DRUGS
2,000 Sanrio Co. Ltd. 73,951
SERVICES
30,000 Sanyo Electric Company Ltd. 121,785
ELECTRICAL INDUSTRIAL APPARATUS
5,000 Secom Company Ltd. 550,230
ELECTRONIC COMPONENTS AND ACCESSORIES
1,900 Sega Enterprises 60,403
MISCELLANEOUS MANUFACTURING INDUSTRIES
5,000 Seiyu (a) 17,119
RETAIL STORES
10,000 Sekisui Chemical 44,312
CHEMICALS AND ALLIED PRODUCTS
11,000 Sekisui House Ltd. 97,379
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
9,000 Seventy Seven Bank 94,288
FOREIGN BANKING
16,000 Sharp Corp. 409,274
ELECTRICAL INDUSTRIAL APPARATUS
700 Shimamura Co. Ltd. (a) 110,926
MISCELLANEOUS APPAREL AND ACCESSORY
STORES
2,400 Shimano Industrial 42,258
MISCELLANEOUS TRANSPORTATION EQUIPMENT
13,000 Shimizu Corp. 42,982
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
7,000 Shin-Etsu Chemical Co. 301,281
CHEMICALS AND ALLIED PRODUCTS
8,000 Shionogi & Company Ltd. 97,114
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
8,000 Shiseido Co. 116,600
CHEMICALS AND ALLIED PRODUCTS
12,000 Shizuoka Bank 123,017
FOREIGN BANKING
24,000 Showa Denko KK 27,468
CHEMICALS AND ALLIED PRODUCTS
7,000 Showa Shell Sekiyu 30,881
CRUDE PETROLEUM AND NATURAL GAS
1,100 SMC Corporation 243,285
MACHINERY, EQUIPMENT, AND SUPPLIES
1,600 Softbank Corp. (a) 1,530,666
SERVICES
</TABLE>
39-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
5,900 Sony Corp. $ 1,748,704
HOUSEHOLD AUDIO AND VIDEO EQUIPMENT
47,000 Sumitomo Bank 643,186
FOREIGN BANKING
24,000 Sumitomo Chemical Co. 112,687
CHEMICALS AND ALLIED PRODUCTS
15,000 Sumitomo Corp. 145,407
MISCELLANEOUS NON-DURABLE GOODS
12,000 Sumitomo Electric Industries 138,629
ELECTRICAL INDUSTRIAL APPARATUS
11,000 Sumitomo Heavy Industries (a) 30,128
MACHINERY, EQUIPMENT, AND SUPPLIES
13,000 Sumitomo Marine & Fire 80,114
INSURANCE CARRIERS
14,000 Sumitomo Metal 31,224
NONFERROUS FOUNDRIES (CASTING)
52,000 Sumitomo Metal Industries (a) 39,166
STEEL WORKS
19,000 Taiheiyo Cement Corporation 36,243
CEMENT, HYDRAULIC
18,000 Taisei Corp. 34,159
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,000 Taisho Pharmaceutical Company Ltd. 176,074
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
2,000 Taiyo Yuden Company Ltd. 118,556
ELECTRICAL INDUSTRIAL APPARATUS
4,000 Takara Shuzo (a) 63,034
MISCELLANEOUS FOOD PREPARATIONS
6,000 Takashimaya Co. 41,318
RETAIL STORES
13,000 Takeda Chemical Industries Ltd. 642,179
DRUGS
2,200 Takefuji Corporation 275,242
MISCELLANEOUS BUSINESS SERVICES
17,000 Teijin Limited 62,693
MISCELLANEOUS TEXTILE GOODS
4,000 Terumo (a) 106,818
SURGICAL, MEDICAL, AND DENTAL
INSTRUMENTS AND SUPPLIES
67,000 The Bank of Tokyo Mitsubishi 933,270
FOREIGN BANKING
24,000 Tobu Railway Company Ltd. 70,430
MISCELLANEOUS TRANSPORTATION SERVICES
6,000 Toda Construction Co. (a) 23,066
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
8,000 TOEI 44,292
MOTION PICTURE PRODUCTION AND ALLIED
SERVICES
700 TOHO Co. 102,299
SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
7,400 Tohoku Electric Power $ 110,026
ELECTRIC SERVICES
33,000 Tokai Bank 207,884
FOREIGN BANKING
22,000 Tokio Marine & Fire Insurance 257,165
INSURANCE CARRIERS
1,000 Tokyo Broadcasting 33,845
RADIO AND TELEVISION BROADCASTING
STATIONS
7,000 Tokyo Dome Corp. 33,552
SERVICES
18,600 Tokyo Electric Power Company Inc. 498,523
ELECTRIC SERVICES
3,000 Tokyo Electron Ltd. 410,838
SERVICES
41,000 Tokyo Gas 99,864
GAS PRODUCTION AND DISTRIBUTION
7,000 Tokyo Tatemono Company Ltd. 12,462
REAL ESTATE OPERATORS AND LESSORS
19,000 Tokyu Corp. 46,278
MISCELLANEOUS TRANSPORTATION SERVICES
11,000 Toppan Printing Co. 109,753
SERVICE INDUSTRIES FOR THE PRINTING
TRADE
22,000 Toray Industries Inc. 85,219
MISCELLANEOUS TEXTILE GOODS
47,000 Toshiba Corporation (a) 358,605
ELECTRICAL INDUSTRIAL APPARATUS
13,000 Tosoh Corp. (a) 49,594
CHEMICALS AND ALLIED PRODUCTS
4,000 Tostem Corporation 71,799
METALS AND MINERALS, EXCEPT PETROLEUM
6,000 Toto Ltd. 36,271
GLASS PRODUCTS
4,000 Toyo Seikan 57,909
METALS AND MINERALS, EXCEPT PETROLEUM
55,000 Toyota Motor Co. 2,663,111
MOTOR VEHICLES AND MOTOR VEHICLE
EQUIPMENT
500 Trans Cosmos 213,245
SERVICES
18,000 UBE Industries Ltd. 37,503
CHEMICALS AND ALLIED PRODUCTS
1,400 UNI Charm 80,661
CHEMICALS AND ALLIED PRODUCTS
27,000 Unitika Ltd. (a) 18,752
MISCELLANEOUS TEXTILE GOODS
4,000 UNY Company Ltd. 39,088
RETAIL STORES
7,000 Wacoal Corp. 61,557
MISCELLANEOUS TEXTILE GOODS
600 World Co. Ltd. 74,538
MISCELLANEOUS TEXTILE GOODS
3,000 Yakult Honsha 26,118
MISCELLANEOUS FOOD PREPARATIONS
</TABLE>
- ---------
40
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
4,000 Yamaha Corp. $ 25,981
MISCELLANEOUS MANUFACTURING INDUSTRIES
6,000 Yamanouchi Pharmaceutical 209,528
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
7,000 Yamato Transport Company Ltd. 271,153
MISCELLANEOUS TRANSPORTATION SERVICES
6,000 Yamazaki Baking Co. 65,089
MISCELLANEOUS FOOD PREPARATIONS
6,000 Yokogawa Electric 42,316
ELECTRICAL INDUSTRIAL APPARATUS
18,000 Yokohama Bank 82,931
FOREIGN BANKING
------------
42,146,996
------------
Netherlands (5.6%)
21,166 ABN Amro Holdings 528,670
BANKING AND FINANCIAL SERVICES
9,724 Aegon NV 939,200
LIFE INSURANCE
4,449 AKZO Dutch 223,144
MISCELLANEOUS CHEMICAL PRODUCTS
2,090 ASM Lithography Holding NV (a) 232,175
COMPUTER PROGRAMMING & DATA PROCESSING
2,649 Buhrmann NV 39,886
PAPER AND PAPER PRODUCTS
11,493 Elsevier 137,282
MISCELLANEOUS PUBLISHING
1,953 Getronics NV 155,784
COMPUTER PROGRAMMING & DATA PROCESSING
4,961 Heineken NV 241,929
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
1,031 IHC Caland NV 37,641
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
13,785 ING Groep NV 832,181
COMMERCIAL BANKS
1,112 KLM-Konin Luchtvaart 28,279
AIR TRANSPORTATION & COURIER SERVICES
9,824 Koninklijke Ahold NV 290,792
GROCERY STORES
7,174 Koninklijke NV 700,131
TELEPHONE COMMUNICATIONS
5,005 Koninklijke Philips Electronics 680,507
ELECTRONIC COMPONENTS AND ACCESSORIES
2,921 OCE NV 49,365
COMPUTER AND OFFICE EQUIPMENT
31,112 Royal Dutch Petroleum Co. 1,906,702
OIL AND GAS FIELD SERVICES
4,287 St. Microelectronics NV (a) 659,737
ELECTRONIC COMPONENTS AND ACCESSORIES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
7,580 TNT Post Group $ 217,193
MISCELLANEOUS TRANSPORTATION SERVICES
8,231 Unilever NV 454,615
MISCELLANEOUS NON-DURABLE GOODS
4,728 Wolters Kluwer NV 159,997
MISCELLANEOUS PUBLISHING
------------
8,515,210
------------
New Zealand (.1%)
135,700 Brierley Investments Ltd. 28,361
MISCELLANEOUS INVESTING
12,400 Fletcher Challenge Energy 32,395
OIL AND GAS FIELD SERVICES
34,100 Telecom Corp. of New Zealand 160,355
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
------------
221,111
------------
Norway (.4%)
4,700 ASK Proxima ASA (a) 32,865
COMPUTER PROGRAMMING & DATA PROCESSING
11,900 Christiania BK OG Kreditkass 58,694
FOREIGN BANKING
5,200 DY Bergesen 94,799
SERVICES INCIDENTAL TO WATER
TRANSPORTATION
4,000 Norsk Hydro ASA 167,822
MISCELLANEOUS BUSINESS SERVICES
5,028 Orkla AS Class A 86,641
GROCERIES AND RELATED PRODUCTS
2,800 Petroleum Geo-Services (a) 49,997
MISCELLANEOUS BUSINESS SERVICES
8,400 Storebrand ASA (a) 63,982
INSURANCE CARRIERS
------------
554,800
------------
Portugal (.5%)
14,381 Banco Comercial Portugues (a) 79,806
FOREIGN BANKING
3,082 Banco Espirito Santo 86,603
MISCELLANEOUS INVESTING
8,288 EDP PL 144,658
ELECTRIC, GAS, AND OTHER UTILITY
SERVICES
2,210 Jeronimo, Martins & Filho 56,535
MISCELLANEOUS FOOD STORES
23,360 Portugal Telecom 256,210
COMMUNICATIONS SERVICES
1,600 Sonae Industria E Investimento 84,440
SERVICES
------------
708,252
------------
</TABLE>
41-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
Singapore (1.1%)
15,000 City Developments $ 87,812
REAL ESTATE AGENTS AND MANAGERS
1,350 Creative Technology Limited 24,479
COMPUTER PROGRAMMING & DATA PROCESSING
21,445 DBS Group Holdings Ltd. 351,516
MISCELLANEOUS INVESTING
29,750 DBS Land Ltd. 58,590
REAL ESTATE AGENTS AND MANAGERS
19,000 First Capital Corp. - Singapore 25,325
REAL ESTATE AGENTS AND MANAGERS
19,000 Keppel Corp. Ltd. (a) 49,738
MISCELLANEOUS MANUFACTURING INDUSTRIES
14,000 Natsteel Ltd. 27,908
MISCELLANEOUS MANUFACTURING INDUSTRIES
22,700 Overseas-Chinese Banking 208,531
FOREIGN BANKING
21,000 Singapore Airlines 238,306
AIRLINES
8,000 Singapore Press Holdings 173,402
NEWSPAPERS: PUBLISHING, OR PUBLISHING
AND PRINTING
92,000 Singapore Telecom Ltd. 190,017
TELEPHONE COMMUNICATIONS
19,616 United Overseas Bank 173,135
FOREIGN BANKING
------------
1,608,759
------------
Spain (2.7%)
1,648 Acerinox SA 65,728
METALS AND MINERALS, EXCEPT PETROLEUM
1,440 Actividades De Construccion 34,155
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
5,829 Aguas De Barcelona 85,360
WATER SUPPLY
2,517 ALBA Corp. Finance 86,088
HOLDING OFFICES
7,896 Argentaria Caja Postal Y Banco 185,531
FOREIGN BANKING
2,066 Asturiana De Zinc (a) 26,634
METALS AND MINERALS, EXCEPT PETROLEUM
7,924 Autopistas Concesionaria 77,013
AUTOMOBILE PARKING
30,032 Banco Bilbao Vizcaya SA 427,689
FOREIGN BANKING
53,400 Banco Santander 604,509
FOREIGN BANKING
3,729 El Aguila (a) 30,421
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
14,694 Endesa SA (a) 291,689
ELECTRIC SERVICES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
2,334 Fomento De Costruct Y Contra $ 47,484
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
6,899 Gas Natural SDG SA 158,908
GAS PRODUCTION AND DISTRIBUTION
13,816 I. Iberdrola SA 191,468
ELECTRIC SERVICES
18,021 Repsol SA 417,810
OIL AND GAS FIELD SERVICES
6,198 Tabacalera SA Class A 88,641
TOBACCO STEMMING AND REDRYING
48,991 Telefonica SA (a) 1,223,663
COMMUNICATIONS SERVICES
4,970 Union Electrica Fenosa SA 86,796
ELECTRIC SERVICES
------------
4,129,587
------------
Sweden (2.7%)
3,200 Atlas Copco AB Class A 94,671
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
2,171 Atlas Copco AB Class B (a) 61,802
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
8,800 Drott AB Class B 100,412
REAL ESTATE AGENTS AND MANAGERS
6,300 Electrolux Class B 158,593
HOUSEHOLD APPLIANCES
28,600 Ericsson AB Class B 1,840,278
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
8,750 Forenings Sparbanken Class A 128,662
FOREIGN BANKING
12,780 Hennes & Mauritz 428,456
FAMILY CLOTHING STORES
6,900 Securitas AB Class B 124,997
MISCELLANEOUS BUSINESS SERVICES
15,600 Skandia Forsakrings AB 471,615
INSURANCE AGENTS, BROKERS, AND SERVICE
12,400 Skandinaviska Enskilda Bankn Class A 125,445
FOREIGN BANKING
2,500 Skanska Class B 93,224
REAL ESTATE AGENTS AND MANAGERS
3,966 Svenska Cellulosa AB-B 117,567
SERVICES
10,290 Svenska Handelbanken 129,518
FOREIGN BANKING
3,900 Volvo Akttiebolag Class A 98,635
MISCELLANEOUS TRANSPORTATION EQUIPMENT
6,200 Volvo Akttiebolag Class B 160,452
MISCELLANEOUS TRANSPORTATION EQUIPMENT
------------
4,134,327
------------
</TABLE>
- ---------
42
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
Switzerland (5.6%)
4,680 ABB Ltd. $ 572,434
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
290 Adecco SA 225,851
SERVICES
140 Alusuis-Lonza Holdings 103,228
MISCELLANEOUS MANUFACTURING INDUSTRIES
3,970 Credit Suisse Group 789,163
FOREIGN BANKING
110 Gebruder Sulzer AG (a) 71,505
MACHINERY, EQUIPMENT, AND SUPPLIES
100 Holderbank Finan Glaris Class B 136,917
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
570 Nestle 1,044,272
MISCELLANEOUS FOOD PREPARATIONS
1,050 Novartis AG 1,541,829
DRUGS
250 Roche Holdings AG (a) 408,240
CHEMICALS AND ALLIED PRODUCTS
1,040 Roche Holdings AG - Genusschein 1,234,518
DRUGS
170 Sairgroup 34,220
AIR TRANSPORTATION & COURIER SERVICES
210 SCHW Rueckversicherungs 431,422
INSURANCE CARRIERS
50 SGS Soc Gen Surviellance Class B (a) 63,748
SERVICES
90 SMH AG (a) 103,668
ELECTRONIC COMPONENTS AND ACCESSORIES
1,090 Swisscom AG (a) 440,874
TELEPHONE COMMUNICATIONS
420 The Swatch Group AG 97,865
ELECTRONIC COMPONENTS AND ACCESSORIES
3,143 UBS 848,819
FOREIGN BANKING
670 Zuerich Allied AG 382,088
INSURANCE CARRIERS
------------
8,530,661
------------
United Kingdom (18.6%)
20,949 Abbey National 334,924
FOREIGN BANKING
22,733 Allied Zurich PLC 267,813
HOLDING OFFICES
5,425 AMEC PLC 21,464
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
9,629 Anglian Water PLC 87,857
WATER SUPPLY
16,420 Arjo Wiggins Appleton PLC 59,662
PAPER AND PAPER PRODUCTS
26,117 Astrazeneca PLC 1,083,096
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
17,312 BAA PLC $ 121,615
AIRPORTS, FLYING FIELDS, AND AIRPORT
TERMINAL SERVICES
21,559 Barclay's PLC 620,418
COMMERCIAL BANKS
8,193 Barratt Developments PLC 38,105
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
14,874 Bass PLC 185,076
EATING AND DRINKING PLACES
9,228 BBA Group 74,511
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
52,070 BG Group PLC 336,353
GAS PRODUCTION AND DISTRIBUTION
14,933 Blue Circle Industries PLC 86,755
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
8,891 BOC Group (a) 190,964
CHEMICALS AND ALLIED PRODUCTS
14,370 Boots Co. PLC 139,702
RETAIL STORES
282,223 BP Amoco PLC 2,837,118
CRUDE PETROLEUM AND NATURAL GAS
43,208 British Aerospace PLC 286,087
AIRCRAFT AND PARTS
15,476 British Airways PLC 100,969
AIRLINES
36,049 British American Tobacco 204,773
CIGARETTES
10,762 British Land Company PLC 71,256
REAL ESTATE AGENTS AND MANAGERS
26,269 British Sky Broadcasting PLC 422,737
COMMUNICATIONS SERVICES
94,831 British Telecommunications PLC 2,317,063
TELEPHONE COMMUNICATIONS
4,199 Burmah Castrol PLC 76,625
OIL AND GAS FIELD SERVICES
31,823 Cadbury Schweppes PLC 192,205
MISCELLANEOUS FOOD PREPARATIONS
13,167 Carlton Communications 128,219
COMMUNICATIONS SERVICES
63,372 Centrica PLC 179,609
METAL MINING SERVICES
19,575 Commercial Union PLC 315,328
INSURANCE CARRIERS
12,279 Compass Group PLC 168,550
EATING AND DRINKING PLACES
52,397 Corus Group PLC (a) 136,232
IRON AND STEEL FOUNDRIES
47,123 Diageo PLC 378,973
BEER, WINE, AND DISTILLED ALCOHOLIC
BEVERAGES
9,186 Electrocomponents PLC 101,691
MISCELLANEOUS MANUFACTURING INDUSTRIES
12,684 EMI Group PLC 124,438
PHOTOGRAPHIC STUDIOS
</TABLE>
43-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
15,526 FKI Babcock $ 60,176
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
11,774 GKN PLC 185,386
MOTOR VEHICLES, PARTS AND SUPPLIES
52,359 Glaxo Wellcome PLC 1,479,712
DRUGS
29,562 Granada Group PLC 299,569
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
15,688 Great Universal Stores 91,712
RETAIL STORES
33,049 Halifax PLC 366,391
FOREIGN BANKING
10,822 Hammerson Property Investment &
Development 74,887
REAL ESTATE AGENTS AND MANAGERS
12,010 Hanson Trust PLC 100,661
MISCELLANEOUS MANUFACTURING INDUSTRIES
15,011 Hays PLC (a) 239,019
LAUNDRY, CLEANING, AND GARMENT SERVICE
31,348 Hilton Group PLC 100,364
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
121,400 HSBC Holdings PLC 1,691,915
HOLDING OFFICES
7,502 IMI PLC 32,469
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
11,684 Imperial Chemical Industries 123,683
CHEMICALS AND ALLIED PRODUCTS
56,411 Invensys PLC 307,000
ENGINEERING, ARCHITECTURAL, AND
SURVEYING SERVICES
31,647 J. Sainsbury PLC 178,492
MISCELLANEOUS FOOD STORES
5,813 Johnson Matthey PLC 64,774
ELECTRONIC COMPONENTS AND ACCESSORIES
21,662 Kingfisher PLC 240,327
NONSTORE RETAILERS
10,394 Land Securities PLC 116,491
REAL ESTATE AGENTS AND MANAGERS
80,892 Legal and General PLC 220,115
INVESTMENT OFFICES
77,899 Lloyds TSB Group PLC 974,322
FOREIGN BANKING
22,528 London & Scotland Marine Oil 42,839
OIL AND GAS FIELD SERVICES
39,458 Marconi Electronic Systems 698,063
COMMUNICATIONS SERVICES
44,625 Marks & Spencer PLC 212,411
RETAIL STORES
10,312 MEPC PLC 77,436
REAL ESTATE AGENTS AND MANAGERS
9,634 Misys PLC 150,135
COMPUTER PROGRAMMING & DATA PROCESSING
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
24,221 National Grid Group PLC $ 184,230
ELECTRIC SERVICES
19,722 National Power PLC 114,179
ELECTRIC SERVICES
4,744 Ocean Group PLC 88,486
MISCELLANEOUS TRANSPORTATION SERVICES
9,996 Pearson PLC 323,499
COMMUNICATIONS SERVICES
11,044 Peninsular & Orient Steam Navigation 184,236
MISCELLANEOUS TRANSPORTATION SERVICES
26,601 Pilkington PLC 36,300
FLAT GLASS
29,191 Prudential PLC 575,118
LIFE INSURANCE
8,445 Railtrack Group PLC 141,835
HOLDING OFFICES
15,507 Rank Group 49,083
MISCELLANEOUS AMUSEMENT AND RECREATION
SERVICES
18,657 Reed International Ltd. 139,650
HOLDING OFFICES
43,251 Rentokil Initial PLC 157,680
MISCELLANEOUS BUSINESS SERVICES
21,304 Reuters Group PLC 292,263
SECURITIES & COMMODITIES EXCHANGE
SERVICES
11,697 Rexam PLC 47,224
PAPER AND PAPER PRODUCTS
16,075 Rio Tinto PLC 388,097
METAL MINING SERVICES
4,498 RMC Group PLC 61,743
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
13,742 Royal Bank of Scotland Group PLC 243,669
FOREIGN BANKING
4,618 Schroders PLC 92,922
INVESTMENT BANKING
28,322 Scottish Power PLC 214,508
ELECTRIC SERVICES
13,716 Slough Estates PLC 78,080
REAL ESTATE AGENTS AND MANAGERS
81,329 Smithkline Beecham PLC 1,037,579
DRUGS, DRUG PROPRIETORS, AND DRUGGIST
SUNDRIES
6,972 Smiths Industries 104,147
ELECTRONIC COMPONENTS AND ACCESSORIES
30,810 Stagecoach Holdings 79,360
MISCELLANEOUS TRANSPORTATION SERVICES
4,670 Tarmac PLC 41,479
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
11,202 Tate & Lyle PLC 71,999
SUGAR AND CONFECTIONERY PRODUCTS
104,890 Tesco PLC 318,876
MISCELLANEOUS FOOD STORES
8,830 Thames Water PLC 110,084
WATER SUPPLY
</TABLE>
- ---------
44
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------
<C> <S> <C>
19,269 The Sage Group PLC $ 235,093
SERVICES
9,779 TI Group PLC 75,013
MISCELLANEOUS MANUFACTURING INDUSTRIES
43,253 Unilever PLC 318,165
MISCELLANEOUS FOOD PREPARATIONS
11,815 United Utilities PLC 122,780
WATER SUPPLY
446,649 Vodafone Group PLC 2,212,565
TELEPHONE COMMUNICATIONS
13,016 Williams PLC 59,223
MISCELLANEOUS MANUFACTURING INDUSTRIES
10,518 Wolseley PLC 80,639
CONSTRUCTION AND MINING MACHINERY &
EQUIPMENT
13,381 WPP Group PLC (a) 211,986
ADVERTISING
------------
28,310,327
------------
Total common stocks
(cost $112,351,912) 149,310,973
PREFERRED STOCKS (.5%)
Australia (.2%)
31,950 News Corporation Ltd. 272,684
COMMUNICATIONS SERVICES
------------
Germany (.3%)
1,150 RWE 35,442
MISCELLANEOUS MANUFACTURING INDUSTRIES
650 SAP AG 396,389
COMPUTER PROGRAMMING & DATA PROCESSING
2,000 Volkswagen AG 62,947
AUTOMOTIVE SERVICES
------------
494,778
------------
Total preferred stocks
(cost $590,992) 767,462
<CAPTION>
Principal
amount
- ------------------------------------------------------------------
FOREIGN CORPORATE BONDS (.0%)
<C> <S> <C>
United Kingdom (.0%)
$ 5,102 British Aerospace PLC, 7.450%,
November 30, 2003 81
7,000 BR Transco Holdings, 7.057%,
December 14, 2009 114
7,000 BG Transco Holdings, 4.188%,
December 14, 2022 113
7,000 BG Transco Holdings, 7.000%,
December 16, 2024 110
------------
Total foreign corporate bonds
(cost $0) 418
<CAPTION>
Principal
amount Value
- ------------------------------------------------------------------
SHORT-TERM INVESTMENTS (1.8%)
<C> <S> <C>
2,665,000 U.S. Treasury Bills, 4.980%,
January, 2000
(cost $2,655,317) $ 2,655,078
------------
TOTAL INVESTMENTS (100.1%)
(cost $115,598,221) 152,733,931
CASH AND OTHER ASSETS, NET
OF LIABILITIES (-0.1%) (72,919)
------------
NET ASSETS (100.0%) $152,661,012
============
</TABLE>
Notes:
(a) Non-income producing security.
At December 31, 1999, net unrealized appreciation of $36,668,434 consisted of
gross unrealized appreciation of $41,395,779 and gross unrealized depreciation
of $4,727,345 based on cost of $116,065,497 for federal income tax purposes.
Approximately 36.9% of the investment securities in the Fund are denominated in
the Euro, followed by 27.6% in the Japanese Yen, 18.6% in the U.K. Pound
Sterling and 5.6% in the Swiss Franc. The remaining investment securities in the
Fund are denominated in seven currencies, each of which represents less than
3.0% of net assets.
INTERNATIONAL FUND INDUSTRY CLASSES
<TABLE>
<CAPTION>
Industry Value %
- ---------------------------------------- ------------ -----
<S> <C> <C>
Communications $ 28,735,562 18.8%
Machinery, Manufacturing & Construction 20,803,294 13.6
Consumer Goods & Services 20,466,841 13.4
Banks 16,509,249 10.8
Healthcare 9,669,568 6.3
Transportation 9,589,197 6.3
Mining & Refining 8,470,648 5.6
Real Estate and Other Financial 7,535,002 4.9
Insurance 6,804,983 4.5
Retail 6,416,839 4.2
Energy & Utilities 5,070,595 3.3
Agriculture, Foods & Beverage 4,666,229 3.1
Chemicals 4,331,600 2.8
Other 1,008,828 0.7
------------ -----
Total Stocks 150,078,435 98.4
Foreign Corporate Bonds 418 0.0
Short-Term Investments 2,655,078 1.7
Liabilities, net of Cash and Other
Assets (72,919) (0.1)
------------ -----
Net Assets $152,661,012 100.0%
============ =====
</TABLE>
See accompanying notes to financial statements.
45-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST STOCK AND BOND BALANCED FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
Shares Value Percent
- ---------- ----------- -------
<C> <S> <C> <C>
INVESTMENT IN MUTUAL FUNDS (100.0%)
1,472,213 State Farm Variable Product Trust
Bond Fund $14,089,079 36.9%
1,597,194 State Farm Variable Product Trust
Large Cap Equity Index Fund 24,069,719 63.1%
-----------
Total investment in mutual funds
(cost $36,009,688)
38,158,798
CASH AND OTHER ASSETS, NET
OF LIABILITIES (0.0%)
1
-----------
NET ASSETS (100.0%) $38,158,799
===========
</TABLE>
Notes:
At December 31, 1999, net unrealized appreciation of $2,131,990 consisted of
gross unrealized appreciation of $2,551,605 and gross unrealized depreciation of
$419,615 based on cost of $36,026,808 for federal income tax purposes.
See accompanying notes to financial statements.
- ---------
46
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount rate date Value
- ---------- -------- ------------------ -----------
<C> <S> <C> <C> <C>
CORPORATE BONDS (92.7%)
Agriculture, Foods, & Beverage (2.7%)
$2,000,000 Dean Foods Company 6.750% June 15, 2005 $ 1,930,700
-----------
Automotive (5.4%)
500,000 Paccar Financial Corp. 5.970% November 15, 2001 490,870
500,000 Ford Motor Credit Company 6.500% February 28, 2002 494,825
1,500,000 Cooper Tire & Rubber Co. 7.250% December 16, 2002 1,486,530
1,500,000 General Motors Acceptance
Corp. 6.150% April 5, 2007 1,387,215
-----------
3,859,440
-----------
Banks (2.8%)
2,000,000 Norwest Financial Inc. 6.375% July 16, 2002 1,971,480
-----------
Building Materials & Construction (3.7%)
750,000 Masco Corp. 6.125% September 15, 2003 721,230
2,000,000 Vulcan Materials Company 5.750% April 1, 2004 1,889,200
-----------
2,610,430
-----------
Chemicals (11.3%)
825,000 Dow Capital 7.375% July 15, 2002 830,173
500,000 EI du Pont de Nemours 6.000% March 6, 2003 483,840
1,000,000 Air Products & Chemicals Inc. 6.250% June 15, 2003 955,450
2,000,000 Rohm & Haas Co. (a) 6.950% July 15, 2004 1,972,460
2,000,000 PPG Industries Inc. 6.750% August 15, 2004 1,957,260
1,000,000 Praxair Inc. 6.900% November 1, 2006 950,690
1,000,000 BF Goodrich Co. 6.600% May 15, 2009 907,360
-----------
8,057,233
-----------
Commercial Service/Supply (1.6%)
350,000 Pitney Bowes Credit 5.650% January 15, 2003 336,875
850,000 Xerox Corporation 5.500% November 15, 2003 794,121
-----------
1,130,996
-----------
Computer Software and Services (2.8%)
2,000,000 Electronic Data Systems Corp. 6.850% October 15, 2004 1,970,080
-----------
Computers (1.8%)
1,500,000 International Business
Machines Corporation 5.375% February 1, 2009 1,314,000
-----------
Consumer & Marketing (8.7%)
150,000 Kimberly Clark Corp. 8.625% May 1, 2001 153,677
500,000 McDonald's Corporation 5.900% May 11, 2001 493,390
2,000,000 Clorox Co. 8.800% July 15, 2001 2,050,960
425,000 Mattel Inc. 6.000% July 15, 2003 395,922
1,000,000 Colgate Palmolive Co. 6.000% August 15, 2003 958,640
300,000 The Procter & Gamble Company 5.250% September 15, 2003 283,461
2,000,000 Hasbro Inc. 5.600% November 1, 2005 1,806,980
-----------
6,143,030
-----------
</TABLE>
47-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount rate date Value
- ---------- -------- ------------------ -----------
<C> <S> <C> <C> <C>
Electronic/Electrical Mfg. (6.9%)
$ 500,000 Public Service Co. of Colorado 6.240% November 27, 2000 $ 497,550
2,000,000 Raytheon Co. 5.950% March 15, 2001 1,967,440
2,000,000 Public Service Co. of Colorado 7.125% June 1, 2006 1,955,560
500,000 Emerson Electric Co. 5.500% September 15, 2008 444,400
-----------
4,864,950
-----------
Financial Services (2.5%)
300,000 Associates Corp. of North
America 5.875% May 16, 2001 296,184
500,000 Household Finance 5.875% November 1, 2002 483,095
1,000,000 Sears Roebuck Acceptance Corp. 7.140% May 2, 2003 983,870
-----------
1,763,149
-----------
Forest Products (5.9%)
500,000 Mead Corporation 6.600% March 1, 2002 493,540
660,000 Westvaco Corp. 9.650% March 1, 2002 691,330
1,000,000 Westvaco Corp. 6.850% November 15, 2004 972,130
2,000,000 International Paper Co. 7.875% August 1, 2006 2,007,040
-----------
4,164,040
-----------
Health Care (1.3%)
500,000 Warner-Lambert Co. 5.750% January 15, 2003 482,855
500,000 Abbott Laboratories 5.400% September 15, 2008 441,805
-----------
924,660
-----------
Machinery & Manufacturing (8.8%)
400,000 Caterpillar Finance 6.750% July 10, 2001 398,528
300,000 Honeywell International Inc. 9.875% June 1, 2002 318,342
1,500,000 Parker Hannifin Corp. 5.650% September 15, 2003 1,414,500
2,000,000 Deere & Company 6.550% July 15, 2004 1,940,900
900,000 TRW Inc. 6.730% July 11, 2007 841,374
1,425,000 Dover Corp. 6.250% June 1, 2008 1,314,092
-----------
6,227,736
-----------
Media & Broadcasting (1.9%)
406,000 The Walt Disney Company 6.375% March 30, 2001 403,929
500,000 Tribune Co. 5.750% September 15, 2003 473,145
500,000 New York Times 5.000% October 8, 2003 464,500
-----------
1,341,574
-----------
Mining & Metals (0.7%)
500,000 ALCOA Inc. 6.125% June 15, 2005 469,565
-----------
Oil, Gas, & Other Energy (3.2%)
2,270,000 Mobil Corp. 8.375% February 12, 2001 2,308,181
-----------
Retailers (9.8%)
1,550,000 Wal-Mart Stores Inc. 8.625% April 1, 2001 1,583,945
500,000 Sherwin Williams Co. 6.500% February 1, 2002 493,790
2,000,000 Safeway Inc. 7.000% September 15, 2002 1,988,580
2,000,000 Albertsons Inc. 6.550% August 1, 2004 1,942,500
1,000,000 Wal-Mart Stores Inc. 6.550% August 10, 2004 981,650
-----------
6,990,465
-----------
</TABLE>
- ---------
48
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount rate date Value
- ---------- -------- ------------------ -----------
<C> <S> <C> <C> <C>
Telecom & Telecom Equipment (8.3%)
$ 750,000 Ameritech Capital Funding
Corp. 5.650% January 15, 2001 $ 741,975
300,000 Worldcom Inc. 6.125% August 15, 2001 296,373
1,250,000 Ameritech Capital Funding
Corp. 6.125% October 15, 2001 1,234,275
200,000 Nortel Networks Corp. 6.875% October 1, 2002 199,076
1,500,000 Southwestern Bell 6.250% October 15, 2002 1,472,670
1,000,000 AT&T Corp. 7.000% May 15, 2005 986,960
1,000,000 Bellsouth Telecommunications 6.500% June 15, 2005 971,690
-----------
5,903,019
-----------
Utilities & Energy (2.6%)
300,000 Georgia Power 6.000% March 1, 2000 299,931
500,000 Virginia Electric & Power 7.375% July 1, 2002 502,315
1,000,000 Carolina Power & Light Co. 7.875% April 15, 2004 1,019,690
-----------
1,821,936
-----------
Total corporate bonds
(cost $68,377,356) 65,766,664
-----------
U.S. TREASURY OBLIGATIONS (1.4%)
1,000,000 U.S. Treasury Notes
(cost $1,000,820) 6.250% January 31, 2002 999,910
-----------
<CAPTION>
Shares or
Principal
amount
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (4.0%)
<C> <S> <C> <C> <C>
1,000,000 Ford Motor Credit Company 6.158% January 5, 2000 1,000,000
1,000,000 Sears Roebuck Acceptance Corp. 6.232% January 18, 2000 1,000,000
850,683 Chase Vista Treasury Plus
Money Market Fund 850,683
-----------
Total short-term investments
(cost $2,850,683) 2,850,683
-----------
TOTAL INVESTMENTS (98.1%)
(cost $72,228,859) 69,617,257
CASH AND OTHER ASSETS, NET OF LIABILITIES (1.9%) 1,328,889
-----------
NET ASSETS (100.0%) $70,946,146
===========
</TABLE>
Notes:
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At December 31, 1999, the value
of this security amounted to $1,972,460 or 2.8% of net assets.
At December 31, 1999, net unrealized depreciation of $2,611,602 consisted
entirely of unrealized depreciation based on cost of $72,228,859 for federal
income tax purposes.
See accompanying notes to financial statements.
49-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
Principal Coupon Maturity
amount Rate date Value
- ---------- ----------------- ------------------ -----------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (99.5%)
Agriculture, Foods, & Beverage (7.2%)
$1,000,000 Sara Lee Corporation 6.380% January 24, 2000 $ 995,924
1,800,000 Coca-Cola 5.820% February 18, 2000 1,786,032
-----------
2,781,956
-----------
Automotive (9.5%)
1,835,000 Ford Motor Credit Company 5.804% January 21, 2000 1,835,000
1,815,000 General Motors Acceptance
Corp. 5.946% February 14, 2000 1,815,000
-----------
3,650,000
-----------
Chemicals (4.2%)
1,630,000 EI du Pont de Nemours 5.650% January 18, 2000 1,625,651
-----------
Computers (4.8%)
1,850,000 International Business
Machines Corporation 5.828% January 20, 2000 1,850,000
-----------
Electronic/Electrical Mfg. (4.8%)
1,865,000 General Electric Capital Corp. 6.014% February 22, 2000 1,865,000
-----------
Financial Services (13.8%)
1,725,000 Household Finance 5.949% January 13, 2000 1,725,000
1,865,000 Associates Corp. of North
America 6.074% February 25, 2000 1,865,000
1,750,000 Caterpillar Finance 5.750% February 28, 2000 1,733,788
-----------
5,323,788
-----------
Health Care (16.1%)
1,000,000 Abbott Laboratories 6.250% January 12, 2000 998,090
1,700,000 Pfizer Inc. (a) 5.650% January 27, 2000 1,693,063
1,800,000 Merck & Co. Inc. 5.800% February 4, 2000 1,790,140
1,790,000 Johnson & Johnson (a) 5.810% April 20, 2000 1,758,223
-----------
6,239,516
-----------
Machinery & Manufacturing (4.5%)
1,740,000 John Deere Credit Co. 5.932% January 19, 2000 1,740,000
-----------
Oil, Gas, & Other Energy (4.8%)
1,860,000 Chevron Corporation 5.918% February 17, 2000 1,860,000
-----------
Retailers (4.6%)
1,790,000 Sears Roebuck Acceptance Corp. 6.063% January 11, 2000 1,790,000
-----------
</TABLE>
- ---------
50
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Coupon Maturity
amount Rate date Value
- ------------------------------------------------------------- ------------------ -----------
U.S. Government (21.8%)
<C> <S> <C> <C> <C>
$3,000,000 Federal Home Loan Mortgage
Corp. 5.515% February 2, 2000 $ 2,985,293
2,000,000 Federal National Mortgage
Association 5.530% February 4, 2000 1,989,555
2,000,000 Federal National Mortgage
Association 5.600% March 2, 2000 1,981,022
1,500,000 Federal National Mortgage
Association 5.480% April 6, 2000 1,478,080
-----------
8,433,950
-----------
Money Market Mutual Funds (3.4%)
1,312,030 Chase Vista Treasury Plus
Money Market Fund 1,312,030
-----------
Total short-term investments
(cost $38,471,891) 38,471,891
CASH AND OTHER ASSETS, NET OF LIABILITIES (0.5%) 179,590
-----------
NET ASSETS (100.0%) $38,651,481
===========
</TABLE>
Notes:
(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 December 31,
1999, the value of these securities amounted to $3,451,286, or 8.9% of net
assets.
At December 31, 1999 the aggregate cost for federal income tax purposes was
$38,471,891.
See accompanying notes to financial statements.
51-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1999
<TABLE>
<CAPTION>
Large Cap
Equity Index
Fund
------------
<S> <C>
Assets
Investments in
securities:
At identified cost $195,549,962
============
At value $225,248,712
Cash 158,858
Foreign currencies at
value (cost $282,705) --
Receivable for:
Dividends and
interest 184,268
Shares of the Fund
sold 179,203
Securities sold 7,501
Expense cap
reimbursement --
Variation margin 28,225
Prepaid expenses 672
------------
Total assets 225,807,439
------------
Liabilities and Net
Assets
Payable for:
Securities purchased 4,809
Manager 158,373
Other 59,055
------------
Total liabilities 222,237
------------
Net assets applicable
to shares outstanding
of common stock 225,585,202
------------
Fund shares outstanding 14,964,856
Net asset value,
offering price and
redemption price per
share $ 15.07
============
Analysis of Net Assets
Excess of amounts
received from sales
of shares over
amounts paid on
redemptions of shares
on account of capital $195,659,431
Accumulated net
realized gain (loss) (107,029)
Net unrealized
appreciation
(depreciation) 30,012,975
Undistributed
(distributions in
excess of) net
investment income 19,825
------------
Net assets applicable
to shares
outstanding $225,585,202
============
</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 86,162,618 115,598,221 36,009,688 72,228,859 38,471,891
=========== ============ =========== ============ ===========
At value 95,225,184 152,733,931 38,158,798 69,617,257 38,471,891
Cash 102,683 225 1 -- --
Foreign currencies at
value (cost $282,705) -- 282,555 -- -- --
Receivable for:
Dividends and
interest 94,076 146,065 -- 1,286,618 136,335
Shares of the Fund
sold 53,717 56,826 18,618 76,591 66,946
Securities sold -- 17,798 -- -- --
Expense cap
reimbursement 76,029 52,349 19,086 -- --
Variation margin 48,100 -- -- -- --
Prepaid expenses 499 -- -- 467 393
----------- ------------ ----------- ------------ -----------
Total assets 95,600,288 153,289,749 38,196,503 70,980,933 38,675,565
----------- ------------ ----------- ------------ -----------
Liabilities and Net
Assets
Payable for:
Securities purchased -- 290,966 -- -- --
Manager 116,914 212,041 18,618 -- --
Other 80,074 125,730 19,086 34,787 24,084
----------- ------------ ----------- ------------ -----------
Total liabilities 196,988 628,737 37,704 34,787 24,084
----------- ------------ ----------- ------------ -----------
Net assets applicable
to shares outstanding
of common stock 95,403,300 152,661,012 38,158,799 70,946,146 38,651,481
----------- ------------ ----------- ------------ -----------
Fund shares outstanding 8,754,477 10,498,882 2,992,974 7,416,942 38,651,481
Net asset value,
offering price and
redemption price per
share 10.90 14.54 12.75 9.57 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 85,688,203 115,016,183 35,066,966 73,601,370 38,651,481
Accumulated net
realized gain (loss) 535,784 822,453 (16,583) (43,622) --
Net unrealized
appreciation
(depreciation) 9,177,316 37,133,107 2,149,110 (2,611,602) --
Undistributed
(distributions in
excess of) net
investment income 1,997 (310,731) 959,306 -- --
----------- ------------ ----------- ------------ -----------
Net assets applicable
to shares
outstanding 95,403,300 152,661,012 38,158,799 70,946,146 38,651,481
=========== ============ =========== ============ ===========
</TABLE>
See accompanying notes to financial statements.
53-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF OPERATIONS
<TABLE>
Year ended December 31, Large Cap Small Cap
1999 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 1/22/1998 1/29/1998
<S> <C> <C> <C> <C>
Investment income:
Dividends $ 1,611,522 328,684 888,749 443,671
Interest 556,792 130,191 152,538 41,268
----------- ---------- ----------- -----------
2,168,314 458,875 1,041,287 484,939
Less: foreign
withholding taxes 15,727 1,833 276 108
----------- ---------- ----------- -----------
Total investment
income 2,152,587 457,042 1,041,011 484,831
Expenses:
Investment advisory and
management fees 351,017 46,527 258,832 118,508
Professional fees 28,211 11,083 28,965 10,834
Fidelity bond expense 2,284 1,114 2,018 1,253
Trustees' fees 4,800 4,500 4,800 4,500
Reports to shareowners 59,632 1,499 69,481 1,499
Security valuation fees 9,049 8,866 27,901 24,587
Custodian fees -- -- -- --
Index license fees 5,000 5,000 8,632 5,119
Fund accounting expense -- -- -- --
Other -- 440 -- 436
----------- ---------- ----------- -----------
Total expenses 459,993 79,029 400,629 166,736
Less: expense
reimbursement from
Manager -- -- 77,089 16,690
----------- ---------- ----------- -----------
Net expenses 459,993 79,029 323,540 150,046
----------- ---------- ----------- -----------
Net investment income 1,692,594 378,013 717,471 334,785
Realized and unrealized
gain (loss) :
Net realized gain
(loss) on sales of
investments (133,909) 22,524 3,960,061 860,154
Net realized gain
(loss) on forward
foreign currency
contracts -- -- -- --
Net realized gain
(loss) on foreign
currency
transactions -- -- -- --
Net realized gain
(loss) on futures
contracts 2,960,885 246,549 439,233 (38,747)
Net unrealized gain
(loss) on open
futures contracts (111,375) 425,600 56,200 58,550
Change in net
unrealized
appreciation or
depreciation on
investments and
foreign currency
transactions 22,889,729 6,809,021 10,106,108 (1,043,542)
----------- ---------- ----------- -----------
Net realized and
unrealized gain
(loss) on investments 25,605,330 7,503,694 14,561,602 (163,585)
----------- ---------- ----------- -----------
Net change in net
assets resulting from
operations $27,297,924 7,881,707 15,279,073 171,200
=========== ========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
- ---------
54
<PAGE>
<TABLE>
International Stock & Bond Money
Equity Index Balanced Bond Market
Fund Fund Fund Fund
------------------------ --------------------- ---------------------- ---------------------
1999 1998 1999 1998 1999 1998 1999 1998
----------- ----------- ---------- --------- ----------- --------- ---------- ---------
1/22/1998 1/29/1998 1/22/1998 1/29/1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends 1,937,734 1,210,085 962,438 47,205 -- -- -- --
Interest 136,729 87,600 -- -- 3,046,583 750,590 1,537,676 638,747
----------- ----------- ---------- -------- ----------- --------- ---------- --------
2,074,463 1,297,685 962,438 47,205 3,046,583 750,590 1,537,676 638,747
Less: foreign
withholding taxes 168,799 104,517 -- -- -- -- -- --
----------- ----------- ---------- -------- ----------- --------- ---------- --------
Total investment
income 1,905,664 1,193,168 962,438 47,205 3,046,583 750,590 1,537,676 638,747
Expenses:
Investment advisory and
management fees 590,404 325,393 -- -- 254,678 51,817 117,199 39,751
Professional fees 30,069 18,200 8,535 5,245 19,027 10,807 16,173 10,562
Fidelity bond expense 2,197 2,070 1,131 575 1,424 821 1,275 702
Trustees' fees 4,800 4,500 4,800 4,500 4,800 4,500 4,800 4,500
Reports to shareowners 52,023 1,414 13,483 1,002 31,651 1,499 12,488 1,503
Security valuation fees 33,885 44,336 -- -- 3,841 1,859 228 237
Custodian fees 229,981 91,529 2,634 2,178 795 3,139 1,666 3,541
Index license fees 10,612 10,001 -- -- -- -- -- --
Fund accounting expense 54,571 51,372 -- -- -- -- -- --
Other 294 -- -- 409 -- 424 -- 421
----------- ----------- ---------- -------- ----------- --------- ---------- --------
Total expenses 1,008,836 548,815 30,583 13,909 316,216 74,866 153,829 61,217
Less: expense
reimbursement from
Manager 202,180 107,042 30,583 13,909 10,602 -- 7,330 10,516
----------- ----------- ---------- -------- ----------- --------- ---------- --------
Net expenses 806,656 441,773 -- -- 305,614 74,866 146,499 50,701
----------- ----------- ---------- -------- ----------- --------- ---------- --------
Net investment income 1,099,008 751,395 962,438 47,205 2,740,969 675,724 1,391,177 588,046
Realized and unrealized
gain (loss) :
Net realized gain
(loss) on sales of
investments 951,382 117,394 (10,394) (6,189) (26,498) (17,124) -- --
Net realized gain
(loss) on forward
foreign currency
contracts (57,922) 105,894 -- -- -- -- -- --
Net realized gain
(loss) on foreign
currency
transactions 58,992 (187,378) -- -- -- -- -- --
Net realized gain
(loss) on futures
contracts -- -- -- -- -- -- -- --
Net unrealized gain
(loss) on open
futures contracts -- -- -- -- -- -- -- --
Change in net
unrealized
appreciation or
depreciation on
investments and
foreign currency
transactions 27,317,744 9,815,363 1,801,510 347,600 (2,817,207) 205,605 -- --
----------- ----------- ---------- -------- ----------- --------- ---------- --------
Net realized and
unrealized gain
(loss) on investments 28,270,196 9,851,273 1,791,116 341,411 (2,843,705) 188,481 -- --
----------- ----------- ---------- -------- ----------- --------- ---------- --------
Net change in net
assets resulting from
operations 29,369,204 10,602,668 2,753,554 388,616 (102,736) 864,205 1,391,177 588,046
=========== =========== ========== ======== =========== ========= ========== ========
</TABLE>
See accompanying notes to financial statements.
55-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
Year ended December 31, Large Cap Small Cap
1999 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 1/22/1998 1/29/1998
<S> <C> <C> <C> <C>
From operations:
Net investment income $ 1,692,594 378,013 717,471 334,785
Net realized gain
(loss) 2,826,976 269,073 4,399,294 821,407
Change in net
unrealized
appreciation or
depreciation 22,778,354 7,234,621 10,162,308 (984,992)
------------- ----------- ----------- -----------
Net change in net assets
resulting from
operations 27,297,924 7,881,707 15,279,073 171,200
Distributions to
shareowners from and in
excess of:
Net investment income (1,676,954) (373,828) (719,491) (330,768)
Net realized gain (3,203,078) -- (3,929,564) (755,353)
------------- ----------- ----------- -----------
Total distributions to
shareowners (4,880,032) (373,828) (4,649,055) (1,086,121)
From Fund share
transactions:
Proceeds from shares
sold 146,055,719 30,942,223 38,826,501 11,591,139
Reinvestment of
distributions 4,880,032 373,828 4,649,055 1,086,121
------------- ----------- ----------- -----------
150,935,751 31,316,051 43,475,556 12,677,260
Less payments for
shares redeemed 1,073,163 519,208 327,710 136,903
------------- ----------- ----------- -----------
Net increase in net
assets from Fund share
transactions 149,862,588 30,796,843 43,147,846 12,540,357
------------- ----------- ----------- -----------
Total increase in net
assets 172,280,480 38,304,722 53,777,864 11,625,436
------------- ----------- ----------- -----------
Net assets:
Beginning of period 53,304,722 15,000,000 41,625,436 30,000,000
------------- ----------- ----------- -----------
End of period+ $ 225,585,202 53,304,722 95,403,300 41,625,436
============= =========== =========== ===========
+Including undistributed
(distribution in excess
of) net investment
income $19,825 4,185 1,997 4,017
============= =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
- ---------
56
<PAGE>
<TABLE>
International Stock & Bond Money
Equity Index Balanced Bond Market
Fund Fund Fund Fund
------------------------- ----------------------- ------------------------ ------------------------
1999 1998 1999 1998 1999 1998 1999 1998
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
1/22/1998 1/29/1998 1/22/1998 1/29/1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income 1,099,008 751,395 962,438 47,205 2,740,969 675,724 1,391,177 588,046
Net realized gain
(loss) 952,452 35,910 (10,394) (6,189) (26,498) (17,124) -- --
Change in net
unrealized
appreciation or
depreciation 27,317,744 9,815,363 1,801,510 347,600 (2,817,207) 205,605 -- --
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Net change in net assets
resulting from
operations 29,369,204 10,602,668 2,753,554 388,616 (102,736) 864,205 1,391,177 588,046
Distributions to
shareowners from and in
excess of:
Net investment income (1,184,732) (895,988) (47,589) (2,748) (2,740,969) (675,724) (1,391,177) (588,046)
Net realized gain (246,323) -- -- -- -- -- -- --
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Total distributions to
shareowners (1,431,055) (895,988) (47,589) (2,748) (2,740,969) (675,724) (1,391,177) (588,046)
From Fund share
transactions:
Proceeds from shares
sold 46,732,878 12,288,814 30,594,022 5,522,631 48,987,283 14,570,954 23,783,771 8,868,290
Reinvestment of
distributions 1,431,055 895,988 47,589 2,748 2,740,969 675,724 1,391,177 588,046
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
48,163,933 13,184,802 30,641,611 5,525,379 51,728,252 15,246,678 25,174,948 9,456,336
Less payments for
shares redeemed 138,202 194,350 763,589 336,535 2,605,787 767,773 5,204,884 774,919
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Net increase in net
assets from Fund share
transactions 48,025,731 12,990,452 29,878,022 5,188,844 49,122,465 14,478,905 19,970,064 8,681,417
------------ ----------- ----------- ---------- ----------- ----------- ----------- -----------
Total increase in net
assets 75,963,880 22,697,132 32,583,987 5,574,712 46,278,760 14,667,386 19,970,064 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+ 152,661,012 76,697,132 38,158,799 5,574,812 70,946,146 24,667,386 38,651,481 18,681,417
============ =========== =========== ========== =========== =========== =========== ===========
+Including undistributed
(distribution in excess
of) net investment
income (310,731) (226,077) 959,306 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. This Fund invests in the Large Cap and
Bond Funds.
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 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 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 open-end 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 a 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). The net
asset value per share is computed by dividing the total value of the Funds
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 daily dividends equal to each Fund's
respective net investment income, and distributions of such amounts are made at
the end of each calendar quarter.
- ---------
58
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
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 futures contracts
(Large Cap and Small Cap Funds), the recognition of net realized losses (Large
Cap, Small Cap and Balanced Funds), and foreign currency transactions
(International Fund).
The International Fund has elected to mark-to-market its investments in Passive
Foreign Investment Companies ("PFICs") for federal income tax purposes. In
accordance with this election, the International Fund recognized unrealized
appreciation relating to PFIC transactions of $188,324 and $278,952 during 1999
and 1998, respectively, which is treated as ordinary income for federal income
taxes.
The accumulated net realized loss on sales of investments in the Bond Fund at
December 31, 1999, amounting to $43,622 is available to offset future taxable
gains. If not applied, the capital loss carryover expires as follows: $26,498 in
2007 and $17,124 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
receives 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>
Year ended Period ended
December 31, 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 $351,017 $ -- $ 46,527 $ --
Small Cap Equity Index Fund 258,832 77,089 118,508 16,690
International Equity Index
Fund 590,404 202,180 325,393 107,042
Stock and Bond Balanced Fund -- 30,583 -- 13,909
Bond Fund 254,678 10,602 51,817 --
Money Market Fund 117,199 7,330 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. In accordance with the overall
investment objectives of each respective Fund, 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 Trusts independent trustees:
<TABLE>
<CAPTION>
Year ended Period ended
December 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
Large Cap Equity Index Fund $4,800 $4,500
Small Cap Equity Index Fund 4,800 4,500
International Equity Index Fund 4,800 4,500
Stock and Bond Balanced Fund 4,800 4,500
Bond Fund 4,800 4,500
Money Market Fund 4,800 4,500
</TABLE>
4. Investment transactions
Investment transactions (exclusive of short-term instruments) were as follows:
<TABLE>
<CAPTION>
Year ended Period ended
December 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
Large Cap Equity Index Fund
Purchases $153,980,183 $36,104,771
Proceeds from sales 5,344,729 1,671,512
Small Cap Equity Index Fund
Purchases 67,198,860 52,304,379
Proceeds from sales 28,192,770 12,266,263
International Equity Index Fund
Purchases 60,313,756 68,386,025
Proceeds from sales 12,886,705 3,948,180
Stock and Bond Balanced Fund:
Large Cap Equity Index Fund
Purchases 18,636,811 3,275,491
Proceeds from sales 228,816 177,057
Bond Fund
Purchases 12,358,427 2,239,590
Proceeds from sales 152,543 122,744
Bond Fund
Purchases 52,008,440 24,106,604
Proceeds from sales 3,090,673 3,284,209
</TABLE>
- ---------
60
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST
NOTES TO FINANCIAL STATEMENTS (Continued)
5. Futures and foreign currency contracts
The Large Cap and Small Cap Funds had the following open futures contracts at
December 31, 1999:
<TABLE>
<CAPTION>
Unrealized
Number of Contract Expiration Gain at
Fund Type Contracts amount Position month 12/31/99
- ---- ------------------------- --------- ------------- -------- ------------------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Large Cap Equity Index
Fund S&P 500 Index 34 $12,615,700 Long March '00 $314,225
Small Cap Equity Index
Fund Russell 2000 Index 10 2,549,750 Long March '00 114,750
</TABLE>
The aggregate market value of investments pledged to cover margin requirements
for the open positions at December 31, 1999 were $12,592,868 and $2,300,217 in
the Large Cap and Small Cap Funds, respectively.
The International Fund had the following open forward foreign currency contracts
at December 31, 1999:
<TABLE>
<CAPTION>
Foreign U.S. Dollar Unrealized
Amount Currency Proceeds Gain/Loss
- ------ ----------------------------------- ----------- ----------
<C> <S> <C> <C>
537 Euro $545 $(14)
</TABLE>
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>
International Equity
Large Cap Equity Index Fund Small Cap Equity Index Fund Index Fund
---------------------------- ---------------------------- --------------------------
Year ended Period ended Year ended Period ended Year ended Period ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 10,553,923 2,676,195 3,990,707 1,262,394 3,818,817 1,129,477
Shares issued in
reinvestment of
ordinary income
dividends and capital
gain distributions 324,686 30,183 433,681 115,711 98,625 80,998
----------- ----------- ----------- ----------- ----------- -----------
10,878,609 2,706,378 4,424,388 1,378,105 3,917,442 1,210,475
Less shares redeemed 76,687 43,444 33,155 14,861 11,008 18,027
----------- ----------- ----------- ----------- ----------- -----------
Net increase in shares
outstanding 10,801,922 2,662,934 4,391,233 1,363,244 3,906,434 1,192,448
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Stock & Bond Balanced Fund Bond Fund Money Market Fund
-------------------------- -------------------------- --------------------------
Year ended Period ended Year ended Period ended Year ended Period ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 2,564,307 519,686 4,970,698 1,439,766 23,783,771 8,868,290
Shares issued in
reinvestment of
ordinary income
dividends and capital
gain distributions 3,735 268 282,287 66,860 1,391,177 588,046
----------- ---------- ----------- ----------- ----------- -----------
2,568,042 519,954 5,252,985 1,506,626 25,174,948 9,456,336
Less shares redeemed 63,779 31,253 266,906 75,763 5,204,884 774,919
----------- ---------- ----------- ----------- ----------- -----------
Net increase in shares
outstanding 2,504,263 488,701 4,986,079 1,430,863 19,970,064 8,681,417
=========== ========== =========== =========== =========== ===========
</TABLE>
61-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST LARGE CAP EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year ended From inception date of
December 31, January 22, 1998 to
1999 December 31, 1998
------------ ----------------------
<S> <C> <C>
Net asset value, beginning of period $12.80 10.00
Income from Investment Operations
Net investment income 0.20 0.12
Net gain on investments (both realized
and unrealized) 2.40 2.80
------ ------
Total from investment operations 2.60 2.92
------ ------
Less Distributions
Net investment income (0.20) (0.12)
Net realized gain (0.13) --
------ ------
Total distributions (0.33) (0.12)
------ ------
Net asset value, end of period $15.07 12.80
====== ======
Total Return 20.36% 29.26%(a)
Ratios/Supplemental Data
Net assets, end of period (millions) $225.6 53.3
Ratio of expenses to average net assets 0.34% 0.32%(b)
Ratio of net investment income to
average net assets 1.25% 1.55%(b)
Portfolio turnover rate 4% 7%
</TABLE>
- ----------
(a) Not annualized.
(b) Determined on an annualized basis.
- ---------
62
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST SMALL CAP EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year ended From inception date of
December 31, January 29, 1998 to
1999 December 31, 1998
------------ ----------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.54 10.00
Income from Investment Operations
Net investment income 0.41 0.27
Net gain or loss on investments (both
realized and unrealized) 1.51 (0.46)
------ ------
Total from investment operations 1.92 (0.19)
------ ------
Less Distributions
Net investment income (0.41) (0.09)
Net realized gain (0.15) (0.18)
------ ------
Total distributions (0.56) (0.27)
------ ------
Net asset value, end of period $10.90 9.54
====== ======
Total Return 20.24% (1.89)%(a)
Ratios/Supplemental Data
Net assets, end of period (millions) $ 95.4 41.6
Ratio of expenses to average net assets 0.50% 0.50%(b)
Ratio of expenses to average net assets,
absent of expense limitation 0.62% 0.55%(b)
Ratio of net investment income to
average net assets 1.11% 1.11%(b)
Portfolio turnover rate 46% 38%
</TABLE>
- ----------
(a) Not annualized.
(b) Determined on an annualized basis.
63-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST INTERNATIONAL EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year ended From inception date of
December 31, January 22, 1998 to
1999 December 31, 1998
------------ ----------------------
<S> <C> <C>
Net asset value, beginning of period $11.63 10.00
Income from Investment Operations
Net investment income 0.13 0.13
Net gain on investments (both realized
and unrealized) 2.92 1.65
------ ------
Total from investment operations 3.05 1.78
------ ------
Less Distributions
Net investment income (0.12) (0.15)
Net realized gain (0.02) --
------ ------
Total distributions (0.14) (0.15)
------ ------
Net asset value, end of period $14.54 11.63
====== ======
Total Return 26.21% 17.90%(a)
Ratios/Supplemental Data
Net assets, end of period (millions) $152.7 76.7
Ratio of expenses to average net assets 0.75% 0.75%(b)
Ratio of expenses to average net assets,
absent of expense limitation 0.94% 0.93%(b)
Ratio of net investment income to
average net assets 1.02% 1.27%(b)
Portfolio turnover rate 12% 6%
</TABLE>
- ----------
(a) Not annualized.
(b) Determined on an annualized basis.
- ---------
64
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST STOCK AND BOND BALANCED FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year ended From inception date of
December 31, January 29, 1998 to
1999 December 31, 1998
------------ ----------------------
<S> <C> <C>
Net asset value, beginning of period $11.41 10.00
Income from Investment Operations
Net investment income 0.25 0.14
Net gain on investments (both realized
and unrealized) 1.11 1.32
------ ------
Total from investment operations 1.36 1.46
------ ------
Less Distributions
Net investment income (.02) (0.05)
------ ------
Total distributions (.02) (0.05)
------ ------
Net asset value, end of period $12.75 11.41
====== ======
Total Return 11.88% 14.66%(a)
Ratios/Supplemental Data
Net assets, end of period (millions) $ 38.2 5.6
Ratio of expenses to average net assets 0.00% 0.00%(b)
Ratio of expenses to average net assets,
absent of expense limitation 0.14% 1.01%(b)
Ratio of net investment income to
average net assets 4.50% 3.43%(b)
Portfolio turnover rate 2% 18%
</TABLE>
- ----------
(a) Not annualized.
(b) Determined on an annualized basis.
65-------
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year ended From inception date of
December 31, January 22, 1998 to
1999 December 31, 1998
------------ ----------------------
<S> <C> <C>
Net asset value, beginning of period $10.15 10.00
Income from Investment Operations
Net investment income 0.52 0.49
Net gain or loss on investments (both
realized and unrealized) (0.58) 0.15
------ ------
Total from investment operations (0.06) 0.64
------ ------
Less Distributions
Net investment income (0.52) (0.49)
------ ------
Total distributions (0.52) (0.49)
------ ------
Net asset value, end of period $ 9.57 10.15
====== ======
Total Return (0.57)% 6.49%(a)
Ratios/Supplemental Data
Net assets, end of period (millions) $ 70.9 24.7
Ratio of expenses to average net assets 0.60% 0.57%(b)
Ratio of expenses to average net assets,
absent of expense limitation 0.62% 0.00%(b)
Ratio of net investment income to
average net assets 5.38% 5.14%(b)
Portfolio turnover rate 7% 26%
</TABLE>
- ----------
(a) Not annualized.
(b) Determined on an annualized basis.
- ---------
66
<PAGE>
STATE FARM VARIABLE PRODUCT TRUST MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year ended From inception date of
December 31, January 29, 1998 to
1999 December 31, 1998
------------ ----------------------
<S> <C> <C>
Net asset value, beginning ofperiod $ 1.00 1.00
Income from Investment Operations
Net investment income 0.05 0.05
------ ------
Total from investment operations 0.05 0.05
------ ------
Less Distributions
Net investment income (0.05) (0.05)
------ ------
Total distributions (0.05) (0.05)
------ ------
Net asset value, end of period $ 1.00 1.00
====== ======
Total Return 4.77% 4.76%(a)
Ratios/Supplemental Data
Net assets, end of period (millions) $ 38.7 18.7
Ratio of expenses to average net assets 0.50% 0.43%(b)
Ratio of expenses to average net assets,
absent of expense limitation 0.53% 0.52%(b)
Ratio of net investment income to
average net assets 4.75% 5.04%(b)
</TABLE>
- ----------
(a) Not annualized.
(b) Determined on an annualized basis.
67-------
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Trustees and Shareowners
State Farm Variable Product Trust --
Large Cap Equity Index Fund
Small Cap Equity Index Fund
International Equity Index Fund
Stock and Bond Balanced Fund
Bond Fund
Money Market Fund
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of the Large Cap Equity Index Fund, Small Cap
Equity Index Fund, International Equity Index Fund, Stock and Bond Balanced
Fund, Bond Fund and Money Market Fund, comprising the State Farm Variable
Product Trust as of December 31, 1999, and the related statements of operations
and changes in net assets and the financial highlights for the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of December 31, 1999, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds of the State Farm Variable Product Trust at December 31, 1999, the
results of their operations, the changes in their net assets and the financial
highlights for the periods indicated therein in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
January 28, 2000
- ---------
68
<PAGE>
(This page has been left blank intentionally.)
69-------
<PAGE>
(This page has been left blank intentionally.)
- ---------
70
<PAGE>
NOTICE OF WITHHOLDING ELECTION
This notice does not apply to distributions which qualify as eligible
rollover distributions from tax-sheltered annuities (TSAs) and qualified
employer retirement plans. We may be required to withhold 20% federal income
tax on such eligible rollover distributions. To determine whether your
distribution qualifies as an eligible rollover distribution and whether
withholding applies, see the Special Tax Notice Regarding Plan Payments which
is enclosed in the quarterly statements for TSA and qualified employer
retirement plan participants.
Proceeds from your account not subject to the mandatory withholding described
above, may be subject to federal and state income tax withholding unless you
elect not to have withholding apply. Withholding will only apply to the
portion of your distribution that is included in your income subject to
federal income tax. There will be no withholding on non-taxable
distributions.
We are required by Federal Income Tax law to notify you of your right to
elect not to have taxes withheld from any actual or deemed distribution, or
to revoke your election to have taxes withheld, if one is in effect. If an
election has not been filed with us, we are required to withhold 10% of the
taxable amount of your distribution for federal income taxes.
You may have made a previous withholding election. If so, that election will
continue in force until you change your election. If you elect not to have
withholding apply to your distribution, or if you do not have enough federal
income tax withheld from your distribution, you may be responsible for
payment of estimated tax and you may incur penalties if your withholding and
estimated tax payments are not sufficient.
You may establish, change or revoke your Withholding Election at any time by
one of the following methods:
- complete and mail this form to:
STATE FARM VARIABLE PRODUCTS
ADMINISTRATION DEPARTMENT
P.O. BOX 2307
BLOOMINGTON, IL 61702-2307 or
- call our TOLL FREE NUMBER 1-888-702-2307 (if you have telephone
authority) or
- fax the election form to 1-309-735-0307 and mail the original to us.
If we receive your election using any of the above mentioned methods at least
10 days prior to your next scheduled payment, your next check will reflect
the change. Otherwise, the change will be reflected on any subsequent
payments.
231-3537 8-97 Printed in U.S.A.
<PAGE>
WITHHOLDING ELECTION FORM
...............................................................................
(Type or print your full name)
...............................................................................
(Your Social Security Number)
...............................................................................
(Home address-number & street or rural route)
...............................................................................
(City or town, state and ZIP code)
...............................................................................
(Policy Number)
........................
(Date)
/ / 1. I elect NOT to have federal income tax withheld from my distribution
(Do not complete lines 2-4.)
If you elect not to have withholding apply to your distribution, or if you do
not have enough federal income tax withheld from your distribution, you may
be responsible for payment of estimated tax and you may incur penalties if
your withholding and estimated tax payments are not sufficient.
/ / 2. I want FEDERAL withholding from my distribution
If you would like an additional amount of federal withholding taken from the
taxable distribution amount, please indicate the additional withholding
amount (not less than $5.00) or percentage (not less than 10%)
......................
/ / 3. I elect not to have STATE income tax withheld from my distribution
/ / 4. I want STATE withholding from my distribution
If you would like an additional amount of state withholding taken from your
payment, please indicate the additional withholding amount $...............
(Note: not all states allow withholding or specify rates of withholding. If
you indicate withholding or an amount and reside in a state where withholding
is not allowed, no state tax will be withheld. If you do not indicate you
want withholding or specify an amount and reside in a state that requires
withholding at your request only, no state tax will be withheld.)
/ / 5. Other: (please specify)................................................
...............................................................................
(Participant's Signature)
........................
(Date)
Return your completed form to: STATE FARM VARIABLE PRODUCTS
ADMINISTRATION DEPARTMENT
P.O. BOX 2307
BLOOMINGTON, IL 61702-2307
<PAGE>
products
INSURANCE PRODUCTS AND SERVICES WE CAN PROVIDE*
LIFE INSURANCE
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. BULK RATE
(Underwriter & Distributor of Variable Products) U.S. POSTAGE
One State Farm Plaza PAID
Bloomington, Illinois 61710-0001 PERMIT 439
FORWARDING SERVICE REQUESTED 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
231-3571-1-CH
