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<PAGE>
Dear Shareholders:
We are pleased to present you with this report for the Sage Life Investment
Trust (the "Trust") for the period ending December 31, 1999.
It presents information about the three funds available through the Trust:
. S&P 500 Equity Index Fund
. EAFE Equity Index Fund
. Money Market Fund
These funds are available only to investors in Sage Life's Asset I and Asset II
variable products.
The report provides a market review, an overview of the funds and their year-end
holdings and our outlook for each fund. A complete financial summary of the
Trust is also included.
Thank you for your investment in Sage variable products.
Sincerely,
SAGE LIFE INVESTMENT TRUST
/s/ Robin I. Marsden
- --------------------------------
Robin I. Marsden
President
<PAGE>
Sage Life Investment Trust
Illustration of an Assumed Investment of $10,000
The graph below compares the increase in value of a $10,000 investment in the
Sage S&P 500 Equity Index Fund with the performance of the Standard & Poor's 500
Composite Stock Price Index. The aggregate since inception total return for the
Sage S&P 500 Equity Index Fund and the Standard & Poor's 500 Composite Stock
Price Index were 18.72% and 18.57%, respectively. The graph assumes that
distributions were reinvested.
Sage S&P 500 Equity Index Fund
Total Return Performance
<TABLE>
<CAPTION>
S&P 500 Equity Index Standard & Poor's 500
Fund Composite Stock Price Index
<S> <C> <C>
Feb-19-99 10,000.00 10,000.00
Feb-99 9,960.00 9,993.06
Mar-99 10,350.00 10,380.73
Apr-99 10,750.00 10,774.62
May-99 10,490.00 10,505.57
Jun-99 11,070.00 11,077.48
Jul-99 10,700.00 10,722.49
Aug-99 10,630.00 10,655.43
Sep-99 10,340.00 10,351.20
Oct-99 10,990.00 10,998.56
Nov-99 11,220.00 11,208.21
Dec-99 11,872.00 11,856.54
</TABLE>
The graph below compares the increase in value of a $10,000 investment in the
Sage EAFE Equity Index Fund with the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East Index (MSCI EAFE Index). The
aggregate since inception total return for the Sage EAFE Equity Index Fund and
the MSCI EAFE Index were 23.30% and 22.69%, respectively. The graph assumes that
distributions were reinvested.
Sage EAFE Equity Index Fund
Total Return Performance
<TABLE>
<CAPTION>
EAFE Equity Index MSCI EAFE Index
Fund
<S> <C> <C>
Mar-22-99 10,000.00 10,000.00
Mar-99 9,880.00 9,895.57
Apr-99 10,240.00 10,284.91
May-99 9,710.00 9,743.67
Jun-99 10,100.00 10,112.03
Jul-99 10,400.00 10,400.70
Aug-99 10,450.00 10,426.70
Sep-99 10,510.00 10,519.84
Oct-99 10,910.00 10,901.99
Nov-99 11,320.00 11,269.23
Dec-99 12,329.70 12,269.45
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
Investment Highlights
1999
The S&P 500 Index continued to amaze in 1999, as it closed the year at an all-
time high of 1469.25. The index returned 21.05% for the year, marking the fifth
consecutive year that the index posted a greater than 20% return. This is quite
an impressive feat when one considers that prior to this the index had never
achieved more than two consecutive years of returns at this level.
After experiencing a disappointing third quarter, which witnessed the S&P 500
down 6.24%, the index finished the year strong with a fourth quarter return of
14.88%. Large-cap growth stocks dominated the fourth quarter as the S&P/BARRA
Growth Index outperformed the S&P/BARRA Value index by 10.77% (19.74% vs.
8.97%). Growth dominated primarily due to the strength of the technology sector.
Of the top fifteen performers, all but four were technology stocks.
If there is a theme that will be remembered about 1999 it will be the dominance
of large-cap technology stocks. The S&P technology sector was up 75% in 1999,
even after experiencing a 72% rise the year before, and now represents nearly
30% of the market capitalization of the index. Technology accounted for roughly
70% of the performance of the S&P 500 Index. In fact, without the technology
sector the S&P 500 would have only posted a return of 7.5%.
The year will also be remembered as being one of the narrowest markets in recent
history as only seven stocks contributed 50% of the total return of the index.
In order of contribution those stocks were Microsoft, Cisco, General Electric,
Wal-Mart, Oracle, Nortel and Qualcomm. Within the S&P 500, the large-cap stocks
continued to dominate performance as is evidenced by the fact that the S&P 500
Equal Weighted Index returned only 11.88%.
The S&P 500 Index finished the year with a total of 42 index changes; just six
shy of the total experienced last year. The fourth quarter turned out to be the
busiest of the year as the index experienced sixteen changes including the
addition of Yahoo! Inc.
The Sage S&P 500 Equity Index Fund intends to replicate the broad
diversification and returns of the S&P 500 Index.
<TABLE>
<CAPTION>
---------------------------------------------------------------
Total Return
02/19/99 - 12/31/99
-------------------
<S> <C>
Sage S&P 500 Equity Index Fund
(Inception February 19, 1999) 18.72%
S&P 500 Index 18.57%
---------------------------------------------------------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
COMMON STOCK - 99.25%
Advertising- 0.36%
200 Interpublic Group of Companies, Inc. $ 11,538
100 Omnicom Group, Inc. 10,000
------------
21,538
------------
Aerospace - 0.86%
500 Boeing Co. 20,781
50 General Dynamics Corp. 2,638
200 Lockheed Martin Corp. 4,375
50 Northrop Grumman Corp. 2,703
28 Teledyne Technologies, Inc.** 264
100 Textron, Inc. 7,669
200 United Technologies Corp. 13,000
-----------
51,430
-----------
Airlines - 0.33%
100 AMR Corp. ** 6,700
100 Delta Air Lines, Inc. 4,981
300 Southwest Airlines Co. 4,856
100 US Airways Group, Inc. ** 3,206
-----------
19,743
-----------
Apparel, Textiles and Shoes - 0.22%
200 NIKE, Inc., Class B 9,913
100 V.F. Corp. 3,000
-----------
12,913
-----------
Automobiles - 0.90%
600 Ford Motor Co. 32,063
300 General Motors Corp. 21,806
-----------
53,869
-----------
Automobile Parts and Equipment - 0.34%
100 AutoZone, Inc. ** 3,231
100 Dana Corp. 2,994
209 Delphi Automotive Systems Corp. 3,292
100 Genuine Parts Co. 2,481
50 Johnson Controls, Inc. 2,844
100 TRW, Inc. 5,194
-----------
20,036
-----------
Banks - 6.81%
800 Bank of America Corp. 40,150
400 Bank of New York Co., Inc. 16,000
600 Bank One Corp. 19,238
100 BB&T Corp. 2,738
400 Chase Manhattan Corp. 31,075
1,650 Citigroup, Inc. 91,678
100 Comerica, Inc. 4,669
100 Fifth Third Bancorp. 7,338
509 Firstar Corp. 10,753
500 First Union Corp. 16,406
536 FleetBoston Financial Corp. 18,660
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Banks - (Continued)
150 Golden West Financial Corp. $ 5,025
110 Huntington Bancshares, Inc. 2,626
200 KeyCorp. 4,425
400 MBNA Corp. 10,900
200 Mellon Financial Corp. 6,813
400 National City Corp. 9,475
100 Northern Trust Corp. 5,300
200 PNC Bank Corp. 8,900
100 Regions Financial Corp. 2,513
100 Republic New York Corp. 7,200
100 State Street Corp. 7,306
100 Summit Bancorp 3,063
200 SunTrust Banks, Inc. 13,763
100 Union Planters Corp. 3,944
400 U.S. Bancorp 9,525
100 Wachovia Corp. 6,800
300 Washington Mutual, Inc. 7,800
800 Wells Fargo Co. 32,350
------------
406,433
------------
Broadcasting - 0.15%
100 Clear Channel Communications, Inc. ** 8,925
------------
Building Materials - 1.29%
1,050 Home Depot, Inc. 71,991
200 Masco Corp. 5,075
------------
77,066
------------
Business Equipment and Supplies - 1.99%
50 Avery Dennison Corp. 3,644
900 International Business Machines Corp. 97,200
100 Pitney Bowes, Inc. 4,831
200 Staples, Inc. ** 4,150
400 Xerox Corp. 9,075
------------
118,900
------------
Business Services - 0.32%
400 Cendant Corp. ** 10,625
200 FDX Corp.** 8,188
------------
18,813
------------
Chemicals and Plastics - 1.92%
100 Air Products & Chemicals, Inc. 3,356
100 Dow Chemical Co. 13,363
556 duPont (E.I.) de Nemours & Co. 36,627
100 Eastman Chemical Co. 4,769
100 Ecolab, Inc. 3,913
200 Minnesota Mining & Manufacturing Co. 19,575
300 Monsanto Co. 10,688
100 Praxair, Inc. 5,031
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Chemicals and Plastics - (Continued)
100 Rockwell International Corp. $ 4,788
136 Rohm & Haas Co. 5,534
100 Union Carbide Corp. 6,675
-------------
114,319
-------------
Coal - 0.05%
100 CSX Corp. 3,138
-------------
Communication Equipment - 1.89%
500 GTE Corp. 35,281
300 Motorola, Inc. 44,175
200 Sprint Corp. (PCS Group) 20,500
200 Tellabs, Inc. ** 12,838
-------------
112,794
-------------
Computer Hardware, Software and Services - 16.26%
100 Apple Computer, Inc. ** 10,281
300 Automatic Data Processing, Inc. 16,163
100 BMC Software, Inc. ** 7,994
100 Ceridian Corp. ** 2,156
1,600 Cisco Systems, Inc.** 171,400
800 Compaq Computer Corp. 21,650
300 Computer Associates International, Inc. 20,981
100 Computer Sciences Corp. ** 9,463
200 Compuware Corp. ** 7,450
1,200 Dell Computer Corp.** 61,200
200 Electronic Data Systems Corp. 13,388
200 Gateway, Inc. ** 14,413
393 Honeywell, Inc. 22,671
1,600 Intel Corp. 131,700
2,400 Microsoft Corp. ** 280,200
200 Novell, Inc. ** 7,988
750 Oracle Corp.** 84,047
200 Parametric Technology Corp. ** 5,413
100 Peoplesoft, Inc. ** 2,131
100 Seagate Technology, Inc. ** 4,656
100 Solectron Corp. ** 9,513
800 Sun Microsystems, Inc. ** 61,950
100 Unisys Corp. ** 3,194
-------------
970,002
-------------
Computer - Semiconductors - 1.34%
200 Applied Materials, Inc. ** 25,338
500 EMC Corp.** 54,625
-------------
79,963
-------------
Consumer Non-Durables - 4.73%
100 Corning, Inc. 12,894
1,600 General Electric Co. 247,600
100 Grainger (W.W.), Inc. 4,781
200 Lowe's Companies, Inc. 11,950
178 Newell Rubbermaid, Inc. 5,162
10 Water Pik Technologies, Inc.** 96
-------------
282,483
-------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Consumer Products - 2.36%
100 Clorox Co. $ 5,038
200 Colgate-Palmolive Co. 13,000
500 Gillette Co. 20,594
100 International Flavors & Fragrances, Inc. 3,775
600 Proctor & Gamble Co. 65,738
400 Warner-Lambert Co. 32,770
-----------
140,915
-----------
Consumer Services - 0.20%
100 Block (H & R), Inc. 4,375
150 Paychex, Inc. 6,000
200 Service Corp. International 1,388
-----------
11,763
-----------
Containers - 0.14%
100 Crown Cork & Seal Co., Inc. 2,238
100 Owens-Illinois, Inc. ** 2,506
100 Pactiv Corp.** 1,063
50 Sealed Air Corp. ** 2,591
-----------
8,398
-----------
Cosmetics-Toiletry - 0.05%
100 Avon Products, Inc. 3,300
-----------
Diversified - 1.36%
400 CBS Corp.** 25,575
100 Fortune Brands, Inc. 3,306
50 Loews Corp. 3,034
200 Raytheon Co., Class B 5,313
750 Tyco International Ltd. 29,156
267 Unilever N.V. 14,535
-----------
80,919
-----------
Electrical Equipment - 1.71%
100 Cooper Industries, Inc. 4,044
100 FirstEnergy Corp. 2,269
500 Hewlett-Packard Co. 56,969
400 Texas Instruments, Inc. 38,750
-----------
102,032
-----------
Electronics - 0.75%
50 Eaton Corp. 3,631
200 Emerson Electric Co. 11,475
100 General Instrument Corp. ** 8,500
50 KLA-Tencor Corp. ** 5,569
100 National Semiconductor Corp.** 4,281
100 Tandy Corp. 4,919
100 Teradyne, Inc.** 6,600
-----------
44,975
-----------
Energy and Resources - 0.05%
100 Burlington Resources, Inc. 3,306
===========
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Entertainment - 1.31%
1,000 Disney (Walt) Co.** $ 29,250
150 Hasbro, Inc. 2,859
200 Mattel, Inc. 2,625
600 Time Warner, Inc. 43,463
-------------
78,197
-------------
Financial Services - 4.17%
200 American Express Co. 33,250
100 American General Corp. 7,588
300 Associates First Capital Corp. 8,231
105 Bear Stearns Companies, Inc. 4,489
150 Capital One Financial Corp. 7,228
100 Countrywide Credit Industries, Inc. 2,525
100 Dow Jones & Co., Inc. 6,800
100 Equifax, Inc. 2,356
500 Fannie Mae 31,219
300 Freddie Mac 14,119
200 First Data Corp. 9,863
100 Franklin Resources, Inc. 3,206
200 Household International, Inc. 7,450
100 Lehman Brothers Holdings, Inc. 8,469
200 Merrill Lynch & Co., Inc. 16,700
100 Morgan (J.P.) & Co., Inc. 12,663
300 Morgan Stanley Dean Witter & Co. 42,825
50 Providian Financial Corp. 4,553
500 Schwab (Charles) Corp. 19,188
100 SLM Holding Corp. 4,225
100 Synovus Financial Corp. 1,988
-------------
248,935
-------------
Food and Beverages - 3.70%
163 Albertson's, Inc. 5,257
200 Anheuser-Busch Companies, Inc. 14,175
100 Bestfoods 5,256
200 Campbell Soup Co. 7,738
1,200 Coca-Cola Co. 69,900
200 Coca-Cola Enterprises, Inc. 4,025
200 ConAgra, Inc. 4,513
200 Heinz (H.J.) Co. 7,963
100 Hershey Foods Corp. 4,750
200 Kellogg Co. 6,163
200 Nabisco Group Holdings Corp. 2,125
700 PepsiCo, Inc. 24,675
1,200 Philip Morris Companies, Inc. 27,825
100 Quaker Oats Co. 6,563
200 Ralston-Ralston Purina Group 5,575
400 Sara Lee Corp. 8,825
200 Seagram Co., Ltd. 8,988
100 UST, Inc. 2,519
50 Wrigley (Wm.) Jr. Co. 4,147
-------------
220,982
-------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Food Distribution - 0.79%
315 Archer-Daniels-Midland Co. $ 3,839
100 Costco Wholesale Corp.** 9,125
200 General Mills, Inc. 7,150
400 Kroger Co.** 7,550
200 Safeway, Inc. ** 7,113
100 SUPERVALU, Inc. 2,000
200 SYSCO Corp. 7,913
100 Winn-Dixie Stores, Inc. 2,394
------------
47,084
------------
Glass Products - 0.11%
100 PPG Industries, Inc. 6,256
------------
Health Care Facilities - 0.24%
300 Columbia/HCA Healthcare Corp. 8,794
100 Humana, Inc. ** 819
200 Tenet Healthcare Corp. ** 4,700
------------
14,313
------------
Health Care Products - 3.17%
700 Abbott Laboratories 25,419
100 Allergan, Inc. 4,975
600 American Home Products Corp. 23,663
100 Becton, Dickinson & Co. 2,675
1,100 Merck & Co., Inc. 73,769
1,800 Pfizer, Inc. 58,388
------------
188,889
------------
Home Appliances - 0.24%
100 Black & Decker Corp. 5,225
100 Illinois Tool Works, Inc. 6,756
50 Maytag Corp. 2,400
------------
14,381
------------
Hotels and Restaurants - 0.65%
100 Darden Restaurants, Inc. 1,813
200 Hilton Hotels Corp. 1,925
100 Marriott International, Inc., Class A 3,156
600 McDonald's Corp. 24,188
100 Mirage Resorts, Inc. ** 1,531
100 Tricon Global Restaurants, Inc. ** 3,863
100 Wendy's International, Inc. 2,059
------------
38,535
------------
Internet Software - 1.99%
1,000 America Online, Inc. ** 75,438
100 Yahoo! Inc.** 43,269
------------
118,707
------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Insurance - 2.96%
100 Aetna, Inc. $ 5,581
400 Allstate Corp. 9,600
750 American International Group, Inc. 81,094
150 Aon Corp. 6,000
100 Chubb Corp. 5,631
100 CIGNA Corp. 8,056
100 Cincinnati Financial Corp. 3,119
200 Conseco, Inc. 3,575
100 Hartford Financial Services Group, Inc. 4,738
50 Jefferson-Pilot Corp. 3,413
100 Lincoln National Corp. 4,000
100 Marsh & McLennan Companies, Inc. 9,569
50 MBIA, Inc. 2,641
100 MGIC Investment Corp. 6,019
50 Progressive Corp. 3,656
100 SAFECO Corp. 2,488
100 St. Paul Companies, Inc. 3,369
100 Torchmark Corp. 2,906
100 United Healthcare Corp. 5,313
173 UnumProvident Corp. 5,542
-------------
176,310
-------------
Machinery and Heavy Equipment - 0.49%
200 Caterpillar, Inc. 9,413
100 Deere & Co. 4,338
100 Dover Corp. 4,538
100 Ingersoll-Rand Co. 5,506
100 Parker-Hannifin Corp. 5,131
-------------
28,926
-------------
Manufacturing - 1.09%
200 Alcan Aluminum Ltd. 8,238
200 Alcoa, Inc. 16,600
200 Boston Scientific Corp. ** 4,375
50 Brown-Forman Corp., Class B 2,863
100 Danaher Corp. 4,825
100 ITT Industries, Inc. 3,344
100 LSI Logic Corp. ** 6,750
100 Micron Technology, Inc. ** 7,775
100 Silicon Graphics, Inc. ** 981
200 3COM Corp. ** 9,395
-------------
65,146
-------------
Medical Instruments, Services and Supplies - 0.93%
100 Baxter International, Inc. 6,281
100 Biomet, Inc. 4,000
100 Cardinal Health, Inc. 4,788
200 Guidant Corp.** 9,400
300 HEALTHSOUTH Corp.** 1,613
200 IMS Health, Inc. 5,438
100 McKesson HBOC, Inc. 2,256
600 Medtronic, Inc. 21,858
-------------
55,634
-------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Metals and Mining - 0.20%
100 Allegheny Technologies, Inc. $ 2,244
400 Barrick Gold Corp. 7,075
100 Newmont Mining Corp. 2,450
-------------
11,769
-------------
Natural Gas - 0.51%
100 Columbia Energy Group 6,325
100 Consolidated Natural Gas Co. 6,494
400 Enron Corp. 17,750
-------------
30,569
-------------
News and Publishing - 0.47%
100 Gannett Co., Inc. 8,156
100 Knight-Ridder, Inc. 5,950
100 New York Times Co., Class A 4,913
50 Times Mirror Co., Class A 3,350
100 Tribune Co. 5,501
-------------
27,870
-------------
Oil - 5.32%
100 Amerada Hess Corp. 5,675
100 Anadarko Petroleum Corp. 3,413
200 Atlantic Richfield Co. 17,300
200 Baker Hughes, Inc. 4,213
300 Chevron Corp. 25,988
100 Coastal Corp. 3,544
100 Conoco, Inc., Class B 2,488
1,728 Exxon Mobil Corp. 139,212
200 Halliburton Co. 8,050
200 Occidental Petroleum Corp. 4,325
100 Phillips Petroleum Co. 4,700
1,000 Royal Dutch Petroleum Co. 60,438
300 Texaco, Inc. 16,294
58 Transocean Sedco Forex Inc. 1,957
100 Union Pacific Corp. 4,363
100 Union Pacific Resources Group, Inc. 1,275
100 Unocal Corp. 3,356
200 USX-Marathon Group 4,933
200 Williams Companies, Inc. 6,113
-------------
317,637
-------------
Oil Equipment and Services - 0.28%
300 Schlumberger Ltd. 16,875
-------------
Paper and Forest Products - 1.09%
100 Champion International Corp. 6,194
100 Fort James Corp. 2,738
100 Georgia-Pacific Group 5,075
274 International Paper Co. 15,464
300 Kimberly-Clark Corp. 19,575
100 Mead Corp. 4,344
100 Weyerhaeuser Co. 7,181
100 Willamette Industries, Inc. 4,644
-------------
65,215
-------------
Pharmaceuticals - 3.48%
50 ALZA Corp.** 1,731
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Pharmaceuticals - (Continued)
1,000 Bristol-Myers Squibb Co. $ 64,188
700 Johnson & Johnson 65,188
500 Lilly (Eli) & Co. 33,250
300 Pharmacia & Upjohn, Inc. 13,500
700 Schering-Plough Corp. 29,526
------------
207,383
------------
Photographic Equipment and Supplies - 0.22%
200 Eastman Kodak Co. 13,250
------------
Printing and Publishing - 0.19%
100 Donnelly (R.R.) & Sons Co. 2,481
100 Dun & Bradstreet Corp. 2,950
100 McGraw-Hill Companies, Inc. 6,163
------------
11,594
------------
Research and Development - 0.40%
400 Amgen, Inc.** 24,025
------------
Retail - Store - 4.50%
100 Best Buy Co., Inc.** 5,019
100 Circuit City Stores - Circuit City Group 4,506
200 CVS Corp. 7,988
200 Dayton Hudson Corp. 14,688
125 Dollar General Corp. 2,844
100 Federated Department Stores, Inc. ** 5,056
450 Gap, Inc. 20,700
300 Kmart Corp. ** 3,019
100 Kohl's Corp. ** 7,219
90 Limited, Inc. 3,898
150 May Department Stores Co. 4,838
100 Nordstrom, Inc. 2,619
100 Office Depot, Inc.** 1,094
100 Penney (J.C.) Co., Inc. 1,994
100 Rite Aid Corp. 1,119
200 Sears, Roebuck & Co. 6,088
100 Sherwin-Williams Co. 2,100
200 TJX Companies, Inc. 4,088
200 Toys 'R' Us, Inc. ** 2,863
500 Walgreen Co. 14,625
2,200 Wal-Mart Stores, Inc. 152,070
------------
268,435
------------
Steel - 0.09%
100 Nucor Corp. 5,481
------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Telecommunications - 11.94%
100 ALLTEL Corp. $ 8,269
1,698 AT&T Corp. 86,174
700 Bell Atlantic Corp. 43,094
900 BellSouth Corp. 42,131
400 Comcast Corp., Special Class A (non-voting) 20,225
305 Global Crossing Ltd.** 15,250
1,465 Lucent Technologies, Inc. 109,600
1,350 MCI WorldCom, Inc. ** 71,634
300 MediaOne Group, Inc. ** 23,044
200 Nextel Communications, Inc. ** 20,625
600 Nortel Networks Corp. 60,600
400 QUALCOMM, Inc.** 70,450
1,558 SBC Communications, Inc. 75,953
400 Sprint Corp. (FON Group) 26,925
200 US West, Inc. 14,400
400 Viacom, Inc., Class B ** 24,175
--------------
712,549
--------------
Tire and Rubber - 0.05%
100 Goodyear Tire & Rubber Co. 2,819
--------------
Transportation - 0.39%
200 Burlington Northern Santa Fe Corp. 4,850
300 Carnival Corp. 14,344
200 Norfolk Southern Corp. 4,100
--------------
23,294
--------------
Utilities - 1.81%
100 AES Corp.** 7,475
100 Ameren Corp. 3,275
100 American Electric Power Co., Inc. 3,213
100 Carolina Power & Light Co. 3,044
100 Central & South West Corp. 2,000
100 Cinergy Corp. 2,413
100 Consolidated Edison, Inc. 3,450
100 Constellation Energy Group 2,900
100 Dominion Resources, Inc. 3,925
100 DTE Energy Co. 3,138
200 Duke Energy Corp. 10,025
200 Edison International 5,238
100 Entergy Corp. 2,575
100 FPL Group, Inc. 4,281
100 GPU, Inc. 2,994
100 New Century Energies, Inc. 3,038
100 Northern States Power Co. 1,950
100 PE Corp - PE Biosystems Group 12,031
100 PECO Energy Co. 3,475
200 PG&E Corp. 4,100
100 PP&L Resources, Inc. 2,288
100 Public Service Enterprise Group, Inc. 3,481
100 Reliant Energy, Inc. 2,288
100 Sempra Energy 1,738
300 Southern Co. 7,050
100 Texas Utilities Co. 3,556
100 Unicom Corp. 3,345
--------------
108,286
--------------
</TABLE>
<PAGE>
Sage Life Investment Trust
S&P 500 Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Waste Management - 0.09%
300 Waste Management, Inc.** $ 5,156
--------------
Total Common Stock (Cost $5,052,278) 5,922,475
--------------
SHORT TERM INVESTMENTS - 0.70%
41,863 Bank of New York Cash Reserves, 4.35% 41,863
--------------
Total Short Term Investments (Cost $41,863) 41,863
--------------
TOTAL INVESTMENTS - 99.95%
(Cost $5,094,141*) $ 5,964,338
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.05% 2,939
---------------
NET ASSETS - 100.00% $ 5,967,277
===============
NET ASSETS consist of:
Accumulated net realized gain on investments $ 13,628
Net unrealized appreciation of investments 870,197
Paid-in capital 5,083,452
---------------
Total Net Assets $ 5,967,277
===============
NET ASSET VALUE, offering price and redemption price per share $ 11.76
===============
Number of Portfolio shares outstanding 507,457
================
* Cost for Federal income tax purposes is $5,094,141 and net unrealized
appreciation consists of:
Gross unrealized appreciation $ 1,302,764
Gross unrealized depreciation (432,567)
----------------
Net unrealized appreciation $ 870,197
================
** Non-income producing security for the period ended December 31, 1999.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
Investment Highlights
1999
The Morgan Stanley Capital International Europe, Australasia, Far East Index
(MSCI EAFE Index) rose a hearty 16.99% in the fourth quarter ending the year up
26.96% - a return which exceeded the S&P 500 Index by 5.91%. This was the first
year that EAFE outperformed the S&P 500 since 1994.
Europe led the charge for the fourth quarter with a gain of 17.39% driven by a
rise in technology and media stocks as well as the continued corporate
consolidation and restructuring activity that began early in the year. Gains in
the Far East totaled 16.77%. While Europe outperformed the Far East in the
fourth quarter, EAFE's impressive annual return was heavily influenced by the
61.53% gain experienced by Japan during 1999.
Topping Japan's outstanding performance were Finland, Singapore, and Sweden,
ringing in the New Year with annual returns of 152.60%, 99.40%, and 79.74%
respectively. While Singapore's results were tied to broader macroeconomic
factors such as increased export activity, a 6% acceleration in the economy, and
lower unemployment, returns in Finland and Sweden were largely a function of two
super-performers, Nokia and Telefon AB L.M. Ericsson, respectively.
Although all EAFE markets posted increases during the fourth quarter, the gains
in some markets were not enough to offset losses from earlier in the year.
Belgium, Ireland, Austria, and Portugal were the hardest hit, posting negative
returns for the year of (14.26%), (12.63%), (9.11%) and (8.88%), respectively.
Switzerland and Italy also ended the year in negative territory.
On the currency front, the euro continued to weaken versus the dollar during the
quarter, ending the year at virtual parity at an exchange rate of $1.0068.
Conversely, the yen strengthened and by year-end, the dollar was worth 102.12
yen. Overall, the yen rose 10% versus the dollar and the euro fell 14% versus
the dollar.
Unlike the third quarter, when value and growth stocks posted similar gains,
growth stocks significantly outperformed value stocks during the fourth quarter
of 1999. Looking at EAFE as a whole, growth outperformed value for the year by
5.4%.
Regionally, results were mixed. Value stocks squeaked ahead of growth stocks in
Europe ending the year up 16.2% versus 15.1% (on a price only basis).
Alternatively, Asian growth stocks experienced almost double the rise of Asian
value stocks over the year with a return of 78.8% for growth versus 47.3% for
value (on a price only basis).
<PAGE>
Top performing industries for the year included Electrical & Electronics,
Electronic Components, and Appliances & Household Durables, all posting annual
gains of over 100%.
In the Europe-Pacific (EPAC) region as whole, large cap stocks (as measured by
the Salomon Smith Barney Primary Market Index) returned 17.42% for the quarter
and 29.81% for the year. Small cap stocks (as measured by the Salomon Smith
Barney Extended Market Index) returned 9.22% for the quarter and 22.97% for the
year.
The Sage EAFE Equity Index Fund intends to replicate the broad diversification
and returns of the MSCI EAFE Index.
<TABLE>
<CAPTION>
-------------------------------------------------------------
Total Return
03/22/99 - 12/31/99
-------------------
<S> <C>
Sage EAFE Equity Index Fund
(Inception March 22, 1999) 23.30%
MSCI EAFE Index 22.69%
-------------------------------------------------------------
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
COMMON STOCK - 99.05%
Australia - 2.34%
1,600 Amcor Ltd. $ 7,494
2,700 AMP Ltd. 29,832
837 Australian Gas Light Co., Ltd. 4,912
2,900 Boral Ltd. 4,493
600 Brambles Industries Ltd. 16,592
4,540 Broken Hill Proprietary Co., Ltd. 59,613
2,630 Coca-Cola Amatil Ltd. 7,183
2,994 Coles Myer Ltd. 15,465
2,336 Colonial Ltd. 10,444
300 CSL Ltd. 4,313
2,600 CSR Ltd. 6,316
400 F.H. Faulding & Co., Ltd. 2,626
4,400 Foster's Brewing Group Ltd. 12,623
1,430 Futuris Corp., Ltd. 2,009
3,629 General Property Trust 5,908
1,600 GIO Australia Holdings Ltd. 2,447
3,291 Goodman Fielder Ltd. 2,938
1,000 James Hardie Industries Ltd. 2,619
700 Leighton Holdings Ltd. 2,711
1,300 Lend Lease Corp., Ltd. 18,213
956 Mayne Nickless Ltd. 2,467
4,340 M.I.M. Holdings Ltd. 4,473
3,700 National Australia Bank Ltd. 56,597
5,113 News Corp., Ltd. 49,645
4,438 Normandy Mining Ltd. 3,147
1,900 North Ltd. 4,478
700 Orica Ltd. 3,773
2,600 Pacific Dunlop Ltd. 3,680
2,300 Pioneer International Ltd. 6,931
1,033 QBE Insurance Group Ltd. 4,815
700 Rio Tinto Ltd. 15,037
300 Rothmans Holdings Ltd. 2,688
1,500 Santos Ltd. 4,087
1,100 Schroders Property Fund 1,697
518 Smith (Howard) Ltd. 3,537
1,600 Southcorp Ltd. 5,641
932 Stockland Trust Group 1,957
700 Suncorp-Metway Ltd. 3,773
800 TABCORP Holdings Ltd. 5,417
18,884 Telstra Corp., Ltd. 102,650
610 Wesfarmers Ltd. 5,034
3,310 Westfield Trust 6,497
4,800 Westpac Banking Corp., Ltd. 33,110
2,900 WMC Ltd. 15,992
3,004 Woolworths Ltd. 10,334
--------
576,208
--------
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Austria - 0.19%
100 Austria Tabakwerke AG $ 4,835
100 Austrian Airlines/Osterreichische Luftverkehrs AG 1,894
300 Bank Austria AG** 16,922
100 Flughafen Wien AG** 3,903
100 Oesterreichische Elektrizitaetswirtschafts AG, Class A 14,051
200 Wienerberger Baustoffindustrie AG 4,349
---------
45,954
---------
Belgium - 0.87%
100 Bekaert NV 5,550
50 Cimenteries CBR Cementbedrijven 5,197
100 Delhaize "Le Lion" SA 7,534
15 D'Ieteren SA 6,146
150 Electrabel SA 49,103
1,500 Fortis, Class B 54,120
50 Groupe Bruxelles Lambert SA 10,073
775 KBC Bancassurance Holding 41,763
220 Solvay SA 18,171
390 UCB SA 16,911
---------
214,568
---------
Denmark - 0.75%
140 Dampskibsselskabet Svendborg A/S, Class B 15,347
35 Bang & Olufsen Holding A/S, Class B 1,279
95 Carlsberg A/S, Class A 3,497
75 Carlsberg A/S, Class B** 2,842
155 Danisco A/S 6,042
3 D/S 1912, Class B 35,323
2 D/S Svendborg, Class B 33,293
125 FLS Industries A/S, Class B 3,147
80 ISS International Service System A/S, Class B 5,381
200 Novo Nordisk A/S, Class B 26,526
570 Tele Danmark A/S 42,351
140 Unidanmark A/S, Class A 9,853
---------
184,881
---------
Finland - 3.04%
300 Kemira Oyj 1,828
200 Kesko Oyj** 2,538
2,200 Merita plc 12,963
300 Metso Oyj** 3,898
3,000 Nokia Oyj 543,915
300 Outokumpu Oyj 4,246
200 Pohjola Group Insurance Corp., Class B 12,087
400 Raisio Group plc 1,583
300 Rautaruukki Oyj 2,100
200 Sampo Insurance Company Ltd., Class A 6,989
1,700 Sonera Group Oyj 116,524
200 Tietoenator Oyj Abp 12,490
700 UPM-Kymmene Oyj 28,203
---------
749,364
---------
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
France - 9.82%
500 Accor SA $ 24,159
210 Air Liquide 35,155
500 Alcatel 114,827
900 Axa 125,463
958 Banque Nationale de Paris 88,389
50 Bouygues SA 31,779
307 Canal Plus 44,683
200 Cap Gemini SA 50,765
850 Carrefour SA 156,763
50 Club Mediterranee SA 5,782
50 Coflexip SA 3,634
230 Compagnie de Saint Gobain 43,252
10 Compagnie Financiere de Paribas 1,117
50 Compagnie Francaise d'Etodes de Construction (Technip SA) 5,127
350 Compagnie Generale des Etablissements Michelin, Class B 13,749
50 CPR SA 1,988
300 Dassault Systemes SA 19,551
50 Eridania Beghin-Say SA 5,379
50 Essilor International SA 15,512
200 Etablissements Economiques du Casino Guichard-Perrachon SA 22,905
2,515 France Telecom SA 332,614
50 Gecina 5,640
200 Groupe Danone 47,138
50 Groupe GTM 4,860
50 Groupe SEB SA 3,525
50 Imetal SA 7,454
264 Lafarge SA 30,740
300 Lagardere S.C.A. 16,317
150 L'Oreal SA 120,341
239 LVMH (Louis Vuitton Moet Hennessy) 107,054
150 Pathe 18,463
200 Pechiney SA, Class A 14,293
300 Pinault-Printemps-Redoute SA 79,170
125 PSA Peugeot Citroen 28,379
950 Rhone-Poulenc SA 55,212
26 Sagem SA 18,070
1,850 Sanofi-Synthelabo SA** 77,033
400 Schneider Electric SA 31,406
100 Sidel SA 10,324
50 Simco SA 4,047
150 Societe BIC SA 6,826
10 Societe Eurafrance SA 6,023
260 Societe Generale 60,495
100 Sodexho Alliance SA 17,697
625 Suez Lyonnaise des Eaux SA 100,158
225 Suez Lyonnaise des Eaux SA 2
400 Thomson CSF** 13,211
1,815 Total Fina SA, Class B 242,231
270 Total Fina SA 3
50 Unibail (Union du Credit-Bail Immobilier) 6,310
600 Usinor SA 11,271
200 Valeo SA 15,431
1,341 Vivendi 121,092
------------
2,422,809
------------
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Germany - 9.85%
100 Adidas-Salomon AG $ 7,504
600 Allianz AG 201,551
1,650 BASF AG 84,760
1,900 Bayer AG 89,947
200 Beiersdorf AG 13,428
300 Continental AG 5,998
2,550 DaimlerChrysler AG 198,287
1,555 Deutsche Bank AG 131,332
1,000 Deutsche Lufthansa AG 23,267
7,436 Deutsche Telekom AG 529,537
1,350 Dresdner Bank AG 73,429
150 Heidelberger Zement AG 11,785
200 Hochtief AG 7,454
1,100 HypoVereinsbank 75,121
200 Linde AG 10,939
300 MAN AG 11,271
1,000 Mannesmann AG 243,755
450 Merck KGaA 13,960
700 Metro AG 37,651
450 Muenchener Rueckversicherungs-Gesellschaft AG 114,132
545 Preussag AG 30,357
1,250 RWE AG 48,978
150 SAP AG (Systeme, Anwendungen, Produkte in der Datenverarbeitung) 73,882
200 Schering AG 24,174
50 SGL Carbon AG 3,324
1,500 Siemens AG 190,824
1,350 Thyssen Krupp AG** 41,134
1,300 Veba AG 63,180
1,300 Viag AG 23,832
800 Volkswagen AG 45,085
-----------------
2,429,878
-----------------
Hong Kong - 2.39%
3,600 Bank of East Asia Ltd. 10,003
9,000 Cathay Pacific Airways 16,035
6,000 Cheung Kong (Holdings) Ltd. 76,220
6,500 CLP Holdings Ltd. 29,935
4,000 Hang Lung Development Co., Ltd. 4,528
4,800 Hang Seng Bank Ltd. 54,802
12,100 Hong Kong and China Gas Co., Ltd. 16,577
3,000 Hong Kong and Shanghai Hotels Ltd. 1,988
29,916 Hong Kong Telecom Ltd. 86,398
10,000 Hutchison Whampoa Ltd. 145,366
3,068 Hysan Development Co., Ltd. 3,888
2,500 Johnson Electric Holdings Ltd. 16,048
5,000 New World Development Co., Ltd. 11,256
4,000 Shangri-La Asia Ltd. 4,580
4,000 South China Morning Post (Holdings) Ltd. 3,448
6,000 Sun Hung Kai Properties Ltd. 62,520
4,000 Swire Pacific Ltd., Class A 23,619
1,000 Television Broadcasts Ltd. 6,818
6,171 Wharf (Holdings) Ltd. 14,329
600 Wing Lung Bank 2,431
-----------------
590,789
-----------------
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Ireland - 0.45%
2,323 Allied Irish Banks plc $ 26,487
1,000 CRH plc 21,535
200 DCC plc 1,491
5,700 Eircom plc 24,401
800 Fyffes plc 1,591
500 Greencore Group plc 1,535
706 Independent News & Media plc 4,629
904 Irish Life & Permanent plc 8,688
2,900 Jefferson Smurfit Group plc 8,763
200 Jurys Doyle Hotel Group plc 1,481
400 Kerry Group plc, Class A 4,794
400 Ryanair Holdings plc** 4,371
1,900 Waterford Wedgwood plc 1,933
-----------------
111,699
-----------------
Italy - 3.94%
4,000 Alitalia SpA 9,529
3,000 Assicurazioni Generali 99,113
9,272 Banca Intesa SpA 37,637
1,000 Banca Popolare di Milano 7,786
5,000 Benetton Group SpA 11,483
4,000 Beni Stabili SpA 1,410
18,000 Enel SpA 75,423
21,000 ENI SpA 115,491
1,000 Fiat SpA 28,556
2,000 Italgas SpA 7,575
1,000 La Rinascente SpA 6,416
2,000 Mediobanca SpA 20,407
6,760 Montedison SpA 11,065
8,000 Olivetti SpA 23,167
5,000 Parmalat Finanziaria SpA 6,396
5,000 Pirelli SpA** 13,724
1,000 Riunione Adriatica di Sicurta SpA 10,032
4,000 San Paolo-IMI SpA 54,352
17,000 Telecom Italia Mobile SpA 189,897
4,000 Telecom Italia Mobile SpA-RNC 19,057
2,000 Telecom Italia SpA-RNC 12,188
10,000 Telecom Italia SpA 141,015
13,000 Unicredito Italiano SpA 63,900
12,000 Unione Immobiliare SpA 5,560
-----------------
971,179
-----------------
Japan - 27.05%
1,000 77 Bank Ltd. 10,483
400 Acom Co., Ltd. 39,190
200 Advantest Corp. 52,853
2,000 Ajinomoto Co., Inc. 20,848
1,000 Amada Co., Ltd. 5,471
200 Aoyama Trading Co., Ltd. 4,248
7,000 Asahi Bank Ltd. 43,163
1,000 Asahi Breweries Ltd. 10,943
4,000 Asahi Chemical Industry Co., Ltd. 20,554
3,000 Asahi Glass Co., Ltd. 23,226
100 Autobacs Seven Co., Ltd. 3,278
2,000 Bank of Fukuoka Ltd. 13,879
11,000 Bank of Tokyo-Mitsubishi Ltd. 153,313
3,000 Bank of Yokohama Ltd. 13,830
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Japan - (Continued)
100 Benesse Corp. $ 24,078
2,000 Bridgestone Corp. 44,044
2,000 Canon, Inc. 79,475
1,000 Casio Computer Co., Ltd. 8,319
5 Central Japan Railway Co. 31,369
3,000 Chichibu Onoda Cement Corp. 5,726
1,000 Chugai Pharmaceutical Co., Ltd. 10,815
1,000 Citizen Watch Co., Ltd. 6,362
400 Credit Saison Co., Ltd. 6,969
200 CSK Corp. 32,495
2,000 Dai Nippon Printing Co., Ltd. 31,908
1,000 Daicel Chemical Industries Ltd. 2,789
2,000 Daiei, Inc. 7,928
1,000 Daiichi Pharmaceutical Co., Ltd. 13,008
1,000 Daikin Industries Ltd. 13,605
2,000 Dainippon Ink & Chemicals, Inc. 5,931
400 Daito Trust Construction Co., Ltd. 4,463
4,000 Daiwa Bank Ltd. 11,745
1,000 Daiwa House Industry Co., Ltd. 7,439
3,000 Daiwa Securities Group, Inc. 46,951
2,000 Denso Corp. 47,764
11 East Japan Railway Co. 59,323
1,000 Ebara Corp. 11,158
1,000 Eisai Co., Ltd. 19,233
600 Fanuc Ltd. 76,402
8,000 Fuji Bank Ltd. 77,753
1,000 Fujikura Ltd. 3,974
1,000 Fuji Photo Film Co. 36,508
100 Fuji Soft ABC, Inc. 7,830
5,000 Fujitsu Ltd. 228,051
1,000 Gunma Bank Ltd. 6,509
100 Hirose Electric Co., Ltd. 22,423
8,000 Hitachi Ltd. 128,413
3,000 Hitachi Zosen Corp. 2,261
2,000 Honda Motor Co., Ltd. 74,386
1,000 Inax Corp. 5,599
7,000 Industrial Bank of Japan Ltd. 67,486
1,000 Isetan Co., Ltd. 7,341
4,000 Itochu Corp. 19,927
1,000 Ito-Yokado Co., Ltd. 108,642
5,000 Japan Airlines Co., Ltd. 14,828
3,000 Japan Energy Corp. 2,731
5 Japan Tobacco, Inc. 38,270
2,000 Joyo Bank Ltd. 9,200
1,000 JUSCO Co., Ltd. 17,432
3,000 Kajima Corp. 8,956
1,000 Kamigumi Co., Ltd. 4,209
1,000 Kaneka Corp. 12,792
2,600 Kansai Electric Power Co., Inc. 45,323
2,000 Kao Corp. 57,062
4,000 Kawasaki Heavy Industries Ltd. 5,324
2,000 Kawasaki Kisen Kaisha Ltd. 2,975
9,000 Kawasaki Steel Corp. 16,120
1,000 Keihin Electric Express Railway Co., Ltd. 3,426
1,000 Kikkoman Corp. 6,646
1,000 Kinden Corp. 7,683
4,000 Kinki Nippon Railway Co., Ltd. 16,052
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Japan - (Continued)
3,000 Kirin Brewery Co., Ltd. $ 31,565
3,000 Komatsu Ltd. 13,801
150 Konami Co., Ltd. 26,794
1,000 Konica Corp. 3,719
1,000 Koyo Seiko Co., Ltd. 8,623
4,000 Kubota Corp. 15,308
1,000 Kuraray Co., Ltd. 10,130
1,000 Kyowa Hakko Kogyo Co., Ltd. 6,000
4,000 Marubeni Corp. 16,796
1,000 Marui Co., Ltd. 14,936
5,000 Matsushita Electric Industrial Co., Ltd. 138,495
1,000 Meiji Seika Kaisha Ltd. 5,687
1,000 Minebea Co., Ltd. 17,158
6,000 Mitsubishi Chemical Corp. 21,141
4,000 Mitsubishi Corp. 30,890
6,000 Mitsubishi Electric Corp. 38,759
3,000 Mitsubishi Estate Co., Ltd. 29,275
1,000 Mitsubishi Gas Chemical Co., Inc. 1,948
9,000 Mitsubishi Heavy Industries Ltd. 30,038
3,000 Mitsubishi Materials Corp. 7,341
2,000 Mitsubishi Rayon Co., Ltd. 4,855
3,000 Mitsubishi Trust & Banking Corp. 26,427
4,000 Mitsui & Co., Ltd. 27,993
2,000 Mitsui Fudosan Co., Ltd. 13,546
2,000 Mitsui Marine & Fire Insurance Co., Ltd. 11,863
1,000 Mitsui Mining & Smelting Co., Ltd. 4,727
3,000 Mitsui Trust & Banking Co., Ltd. 6,783
1,000 Mitsukoshi Ltd. 3,524
1,000 Murata Manufacturing Co., Ltd. 234,903
1,000 Mycal Corp. 4,355
100 Namco Ltd. 6,479
4,000 NEC Corp. 95,331
1,000 NGK Insulators Ltd. 7,429
1,000 NGK Spark Plug Co., Ltd. 9,150
200 Nichiei Co., Ltd. 4,346
100 Nidec Corp. 28,873
1,000 Nikon Corp. 29,363
300 Nintendo Co., Ltd. 49,858
3,000 Nippon Express Co., Ltd. 16,590
1,000 Nippon Meat Packers, Inc. 12,969
3,000 Nippon Mitsubishi Oil Corp. 13,213
3,000 Nippon Paper Industries Co., Ltd. 16,531
1,000 Nippon Sheet Glass Co., Ltd. 5,187
18,000 Nippon Steel Corp. 42,106
31 Nippon Telegraph & Telephone Corp. 530,978
3,000 Nippon Yusen Kabushiki Kaisha 12,273
1,000 Nishimatsu Construction Co., Ltd. 4,013
10,000 Nissan Motor Co., Ltd. 39,346
300 Nissin Food Products Co., Ltd. 7,062
5,000 Nomura Securities Co., Ltd. 90,291
1,000 NSK Ltd. 6,842
1,000 NTN Corp. 2,956
2,000 Obayashi Corp. 9,455
3,000 Oji Paper Co., Ltd. 18,058
1,000 Olympus Optical Co., Ltd. 14,143
1,000 Omron Corp. 23,050
200 Oriental Land Co., Ltd. 17,187
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Japan - (Continued)
200 Orix Corp. $ 45,062
7,000 Osaka Gas Co., Ltd. 16,854
200 Promise Co., Ltd. 10,179
300 Rohm Co., Ltd. 123,324
10,000 Sakura Bank Ltd. 57,943
1,000 Sankyo Co., Ltd. 20,554
1,000 Sanwa Shutter Corp. 3,719
5,000 Sanyo Electric Co., Ltd. 20,309
1,000 Sapporo Breweries Ltd. 3,230
1,000 Secom Co., Ltd. 110,111
300 Sega Enterprises Ltd. 9,543
1,000 Sekisui Chemical Co., Ltd. 4,434
2,000 Sekisui House Ltd. 17,716
3,000 Sharp Corp. 76,784
100 Shimamura Co., Ltd. 15,856
2,000 Shimizu Corp. 6,616
1,000 Shin-Etsu Chemical Co., Ltd. 43,065
1,000 Shionogi & Co., Ltd. 12,146
1,000 Shiseido Co., Ltd. 14,584
2,000 Shizuoka Bank Ltd. 20,515
200 SMC Corp. 44,260
1,000 Snow Brand Milk Products Co., Ltd. 4,033
300 Softbank Corp. 287,168
1,000 Sony Corp. 296,565
8,000 Sumitomo Bank Ltd. 109,543
4,000 Sumitomo Chemical Co., Ltd. 18,792
3,000 Sumitomo Corp. 29,099
2,000 Sumitomo Electric Industries 23,118
2,000 Sumitomo Heavy Industries Ltd. 5,481
2,000 Sumitomo Marine & Fire Insurance Co., Ltd. 12,332
10,000 Sumitomo Metal Industries Ltd. 7,535
2,000 Sumitomo Metal Mining Co. 4,463
3,000 Taisei Corp. 5,696
1,000 Taisho Pharmaceutical Co., Ltd. 29,362
1,000 Takara Shuzo Co., Ltd. 15,768
1,000 Takashimaya Co., Ltd. 6,890
2,000 Takeda Chemical Industries 98,855
400 Takefuji Corp. 50,073
2,000 Teijin Ltd. 7,380
1,000 Terumo Corp. 26,720
1,000 The Daimaru, Inc. 3,387
2,000 The Furukawa Electric Co., Ltd. 30,342
2,000 The Hokuriku Bank Ltd. 4,737
2,000 Tobu Railway Co., Ltd. 5,873
1,300 Tohoku Electric Power Co., Inc. 19,340
5,000 Tokai Bank Ltd. 31,516
4,000 Tokio Marine & Fire Insurance Co., Ltd. 46,785
3,300 Tokyo Electric Power Co. 88,500
7,000 Tokyo Gas Co., Ltd. 17,060
3,000 Tokyu Corp. 7,311
2,000 Toppan Printing Co., Ltd. 19,967
4,000 Toray Industries, Inc. 15,504
7,000 Toshiba Corp. 53,440
1,000 Tosoh Corp. 3,817
1,000 Tostem Corp. 17,960
1,000 Toto Ltd. 6,049
1,000 Toyo Seikan Kaisha Ltd. 14,486
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Japan - (Continued)
9,000 Toyota Motor Corp. $ 436,038
2,000 Ube Industries Ltd. 4,170
1,000 Uny Co., Ltd. 9,778
100 World Co., Ltd. 12,430
1,000 Yamaha Corp. 6,499
1,000 Yamanouchi Pharmaceutical Co., Ltd. 34,942
1,000 Yamato Transport Co., Ltd. 38,759
1,000 Yamazaki Baking Co., Ltd. 10,854
1,000 Yokogawa Electric Corp. 7,057
-----------------
6,673,447
-----------------
Netherlands - 5.69%
3,814 ABN AMRO Holding NV 95,273
240 ASM Lithography Holding NV 26,664
1,543 Aegon NV 149,046
755 Akzo Nobel NV 37,872
1,765 Elsevier NV 21,085
236 Getronics NV 18,827
830 Heineken NV 40,480
2,363 ING Groep NV 142,665
1,711 Koninklijke Ahold NV 50,651
1,257 Koninklijke KPN NV 122,686
146 Koninklijke Luchtvaart Maatschappij NV (KLM) 3,750
897 Koninklijke (Royal) Philips Electronics NV 121,973
219 Oce NV 3,701
5,192 Royal Dutch Petroleum Co. 318,224
706 STMicroelectronics NV 108,659
1,257 TNT Post Group NV 36,021
1,422 Unilever NV 78,548
252 Vedior NV 2,589
732 Wolters Kluwer NV 24,774
-----------------
1,403,488
-----------------
New Zealand - 0.17%
7,900 Brierley Investments Ltd. 1,651
4,600 Carter Holt Harvey Ltd. 6,009
1,000 Contact Energy Ltd.** 1,750
400 Fisher & Paykel Industries Ltd. 1,526
900 Fletcher Challenge Building 1,326
900 Fletcher Challenge Energy** 2,351
2,100 Fletcher Challenge Forests 844
1,700 Fletcher Challenge Paper 1,190
1,500 Lion Nathan Ltd. 3,488
4,600 Telecom Corporation of New Zealand Ltd. 21,632
-----------------
41,767
-----------------
Norway - 0.37%
100 Bergesen d.y. ASA, Class A 1,821
100 Bergesen d.y. ASA, Class B 1,709
1,500 Christiania Bank Og Kreditkasse 7,392
1,700 Den Norske Bank ASA 6,978
100 Dyno Industrier ASA 2,495
100 Elkem ASA 2,308
200 Hafslund ASA, Class A 1,208
100 Leif Hoegh & Co. ASA 1,185
300 Merkantildata ASA 3,630
600 NCL Holdings ASA** 2,590
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Norway - (Continued)
700 Norsk Hydro ASA $ 29,256
100 Norske Skogindustrier ASA, Class A 5,215
557 Orkla ASA, Class A 9,590
200 Petroleum Geo-Services** 3,568
100 SAS Norge ASA, Class B 1,085
200 Schibsted ASA 3,718
700 Storebrand ASA** 5,327
200 Tomra Systems ASA 3,393
-----------------
92,468
-----------------
Portugal - 0.46%
2,500 Banco Comercial Portugues SA 13,875
300 Banco Espirito Santo SA 8,431
1,445 BPI-SGPS SA 6,157
1,000 Brisa Auto-Estradas de Portugal SA 7,675
100 Companhia de SegurosTranquilidade 3,062
320 Cimpor-Cimentos de Portugal, SGPS SA 5,318
1,600 EDP - Electricidade de Portugal SA 27,929
200 Jeronimo Martins, SGPS SA 5,117
2,750 Portugal Telecom SA 30,165
100 Sonae Investimentos-Sociedade Gestora de Participacors SA 5,278
-----------------
113,007
-----------------
Singapore - 0.96%
2,000 City Developments Ltd. 11,708
1,000 Cycle & Carriage Ltd. 3,092
2,326 DBS Group Holdings Ltd. 38,127
3,750 DBS Land Ltd. 7,385
1,000 Fraser & Neave Ltd. 3,693
2,000 Keppel Corp., Ltd. 5,236
3,000 Neptune Orient Lines Ltd. 4,017
3,150 Oversea-Chinese Banking Corp., Ltd. 28,937
4,000 Sembcorp Industries Ltd. 5,452
3,000 Singapore Airlines Ltd. 34,044
1,000 Singapore Press Holdings Ltd. 21,675
7,000 Singapore Technologies Engineering Ltd. 10,844
14,000 Singapore Telecommunications Ltd. 28,916
8,099 Sino Land Co. 4,662
2,112 United Overseas Bank Ltd. 18,641
1,000 Venture Manufacturing (Singapore) Ltd. 11,468
-----------------
237,897
-----------------
Spain - 2.71%
150 Acerinox SA 5,983
171 ACS, Actividades de Construccion y Servicios SA 4,056
1,300 Argentaria, Caja Postal y Banco Hipotecario de Espana SA 30,549
3 Aguas de Barcelona 44
682 Autopistas, Concesionaria Espanola SA 6,629
5,400 Banco Bilbao Vizcaya SA** 76,910
8,890 Banco Santander Central Hispano SA 100,648
300 Corporacion Financiera Alba SA 10,262
2,550 Endesa SA 50,625
300 Fomento de Construcciones y Contratas SA 6,104
1,200 Gas Natural SDG SA 27,643
450 Grupo Dragados SA 3,971
2,400 Iberdrola SA 33,263
150 Metrovacesa SA 2,599
2,900 Repsol SA 67,242
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
Spain - (Continued)
300 Sociedad General de Aguas de Barcelona SA $ 4,394
400 Sol Melia SA 4,533
975 Tabacalera SA, Class A 13,945
7,920 Telefonica SA 197,840
550 TelePizza SA** 2,327
800 Union Electrica Fenosa SA 13,973
350 Vallehermoso SA 2,461
330 Zardoya Otis SA 3,247
-----------------
669,248
-----------------
Sweden - 2.75%
300 Atlas Copco AB, Class A 8,868
200 Atlas Copco AB, Class B 5,689
1,000 Electrolux AB, Series B 25,153
1,350 ForeningsSparbanken AB (Swedbank) 19,834
2,000 Hennes & Mauritz AB, Class B 66,996
300 NetCom AB, Class B** 21,086
500 Sandvik AB, Class A 15,662
200 Sandvik AB, Class B 6,370
900 Securitas AB, Class B 16,291
1,400 Skandia Forsakrings AB 42,290
1,600 Skandinaviska Enskilda Banken, Class A** 16,173
320 Skandinaviska Enskilda Banken, Class A** 3,197
300 Skanska AB, Class B 11,178
500 Svenska Cellulosa AB, Class B 14,810
1,800 Svenska Handelsbanken AB, Class A 22,638
1,100 Swedish Match AB 3,840
5,200 Telefonaktiebolaget LM Ericsson (Ericsson AB), Class B 334,321
400 Volvo AB, Class A 10,108
800 Volvo AB, Class B 20,686
200 WM-Data AB, Class B 12,365
-----------------
677,555
-----------------
Switzerland - 5.56%
722 ABB Ltd. 88,306
44 Adecco SA 34,265
15 Alusuisse Lonza Group AG (algroup) 11,059
705 Credit Suisse Group 140,132
14 Holderbank Financiere Glarus AG, Class B 19,167
20 Lonza AG 12,159
105 Nestle SA 192,354
170 Novartis AG 249,614
5 Roche Holding AG 81,643
15 Roche Holding AG 178,044
38 Schweizerische Rueckversicherungs-Gesellschaft 78,062
195 Swisscom AG 78,867
510 UBS AG 137,725
125 Zurich Allied AG 71,281
-----------------
1,372,678
-----------------
United Kingdom - 19.69%
1,456 3i Group plc 25,988
3,600 Abbey National plc 57,569
4,000 Allied Zurich plc 47,134
1,639 Amvescap plc 19,062
700 Anglian Water plc 6,422
2,500 Arjo Wiggins Appleton plc 8,177
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
United Kingdom - (Continued)
464 ARM Holdings plc $ 31,307
4,401 AstraZeneca Group plc 182,557
2,700 BAA plc 18,972
3,707 Barclays plc 106,705
2,000 Bass plc 24,892
1,100 BBA Group plc 9,071
8,977 BG Group plc 58,002
1,900 Blue Circle Industries plc 11,041
1,200 BOC Group plc 25,780
2,300 Boots Co. plc 22,365
47,956 BP Amoco plc 482,209
7,481 British Aerospace plc 49,545
2,700 British Airways plc 17,620
5,600 British American Tobacco plc 31,818
1,300 British Land Co. plc 8,562
4,400 British Sky Broadcasting Group plc 70,824
15,900 British Telecommunications plc 388,588
1,121 Bunzl plc 6,175
416 Burmah Castrol plc 7,896
5,200 Cadbury Schweppes plc 31,414
1,600 Carlton Communications plc 15,584
10,170 Centrica plc 28,830
3,300 CGU plc 53,172
1,700 Compass Group plc 23,341
5,100 Corus Group plc 13,263
8,500 Diageo plc 68,376
1,062 Dixons Group plc 25,543
1,059 Electrocomponents plc 11,718
2,000 EMI Group plc 19,626
1,400 FKI plc 5,518
1,800 GKN plc 28,349
9,000 Glaxo Wellcome plc 254,410
4,600 Granada Group plc 46,626
2,600 Great Universal Stores plc 15,203
274 Hagemeyer NV 6,345
5,547 Halifax Group plc** 61,511
712 Hammerson plc 4,928
1,700 Hanson plc 14,252
2,107 Hays plc 33,558
3,000 Hilton Group plc 9,607
21,133 HSBC Holdings plc 294,595
900 IMI plc 4,078
1,900 Imperial Chemical Industries plc 20,118
9,370 Invensys plc 51,006
539 Johnson Matthey plc 5,681
4,900 J Sainsbury plc 27,643
3,500 Kingfisher plc 38,840
140 Kvaerner ASA, Class A** 2,952
1,400 Land Securities plc 15,694
3,000 LASMO plc 5,742
13,200 Legal & General Group plc 35,928
13,435 Lloyds TSB Group plc 168,079
994 Logica plc 25,529
6,721 Marconi Ord 118,769
7,300 Marks & Spencer plc 34,756
3,000 Mediaset SpA** 46,656
1,100 MEPC plc 7,880
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31,1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C>
United Kingdom - (Continued)
1,500 Misys plc $ 23,381
3,800 National Grid Group plc 28,911
3,200 National Power plc 18,531
353 Ocean Group plc 6,717
70 OMV AG 6,804
1,500 Pearson plc 48,556
1,600 Peninsular and Oriental Steam Navigation Co. 26,698
150 Pernod Ricard 8,582
700 Provident Financial plc 7,689
4,815 Prudential Corp. plc 94,888
1,000 Racal Electronics plc 9,070
1,300 Railtrack Group plc 21,839
1,900 Rank Group plc 6,061
2,900 Reed International plc 21,712
7,300 Rentokil Initial plc 26,620
3,511 Reuters Group plc 48,178
2,700 Rio Tinto plc 65,202
700 RMC Group plc 9,441
53 Rolls-Royce plc** 183
2,185 Royal Bank of Scotland Group plc 38,753
3,030 Sage Group plc 36,977
800 Schroders plc 16,101
3,100 Scottish Power plc 23,485
1,127 Sema Group plc 20,280
1,015 Slough Estates plc 5,796
13,800 SmithKline Beecham plc 176,100
800 Smiths Industries plc 11,727
3,500 Stagecoach Holdings plc 8,282
496 Tarmac plc 4,595
1,200 Tate & Lyle plc 7,870
16,900 Tesco plc 51,390
900 Thames Water plc 11,223
1,300 TI Group plc 9,660
595 Unigate plc 2,931
7,190 Unilever plc 52,902
1,400 United Utilities plc 14,552
89,147 Vodafone AirTouch plc 441,717
1,900 Williams plc 8,685
1,500 Wolseley plc 11,061
1,875 WPP Group plc 29,706
-----------------
4,856,257
-----------------
Total Common Stock (Cost $20,066,975) 24,435,141
-----------------
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Shares Market
Value
-----
<S> <C>
PREFERRED STOCK - 0.46%
Australia - 0.16%
4,532 News Corp., Ltd. 38,827
-----------------
Germany - 0.28%
100 SAP AG- Vorzug (Systeme, Anwendungen, Produkte in der 60,234
Datenverarbeitung)
250 Volkswagen AG 8,007
-----------------
68,241
-----------------
Italy - 0.02%
400 Fiat SpA 5,782
-----------------
Total Preferred Stock (Cost $79,477) 112,850
-----------------
RIGHTS - 0.01%
United Kingdom - 0.01%
910 British Aerospace plc 1,448
-----------------
Total Rights (Cost $1,451) 1,448
-----------------
SHORT TERM INVESTMENTS - 0.11%
28,152 Bank of New York Cash Reserves, 4.35% 28,152
-----------------
Total Short Term Investments (Cost $28,152) 28,152
-----------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (b)
----------
<S> <C>
CORPORATE BONDS - 0.03%
United Kingdom - 0.03%
GBP 1,293 BG Transco Holdings plc, 2,084
7.06% due 12/14/2009
1,293 BG Transco Holdings plc, 2,101
4.19% due 12/14/2022
1,293 BG Transco Holdings plc, 2,041
-----------------
7.00% due 12/16/2024
Total Corporate Bonds (Cost $6,287) 6,226
-----------------
TOTAL INVESTMENTS - 99.66%
(Cost $20,182,342*) $ 24,583,817
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.34% 82,966
-----------------
NET ASSETS -100.00% $ 24,666,783
=================
NET ASSETS consist of:
Undistributed net investment income (a) $ (3,415)
Accumulated net realized gain on investments 85,707
Net unrealized appreciation of investments and foreign currency 4,400,470
transactions
Paid-in capital 20,184,021
-----------------
Total Net Assets $ 24,666,783
=================
NET ASSET VALUE, offering price and redemption price per share $ 12.24
=================
Number of Portfolio shares outstanding 2,015,101
=================
* Cost for Federal income tax purposes is $20,182,386 and net unrealized
appreciation consists of:
Gross unrealized appreciation $ 5,701,318
Gross unrealized depreciation (1,299,887)
-----------------
Net unrealized appreciation $ 4,401,431
=================
** Non-income producing security
(a) Undistributed net investment income includes net realized gains (losses) on
foreign currency transactions. Net realized gains on foreign currency
transactions are distributed as net investment income in accordance with
provisions of the Internal Revenue Code.
(b) Principal amount is stated in the currency of the country in which the security
is denominated.
</TABLE>
<PAGE>
Sage Life Investment Trust
EAFE Equity Index Fund
December 31, 1999
Statement of Net Assets
At December 31, 1999, sector diversification of the Portfolio was as follows:
<TABLE>
<CAPTION>
% OF
SECTOR DIVERSIFICATION NET ASSETS
- ---------------------- ----------
<S> <C>
LONG TERM INVESTMENTS:
Aerospace 0.21%
Airlines 0.51%
Automotive 3.87%
Banking 10.14%
Broadcasting & Publishing 2.36%
Chemicals 2.50%
Computer Services 4.19%
Construction 2.17%
Diversified Operations 5.38%
Electronics 7.89%
Energy 1.92%
Entertainment & Leisure 0.43%
Financial Services 4.62%
Food & Beverages 4.40%
Health & Personal Care 1.02%
Hotels & Motels 0.18%
Insurance 5.32%
Machinery & Engineering Services 1.44%
Manufacturing 1.11%
Metals & Mining 1.48%
Oil 3.71%
Paper Products 0.51%
Pharmaceuticals 5.93%
Real Estate 1.28%
Retail 2.95%
Security Services 0.51%
Telecommunications 18.62%
Transportation 1.77%
Utility 3.13%
-------
Total Long Term Investments 99.55%
Total Short Term Investments 0.11%
Other Assets & Liabilities (Net) 0.34%
-------
NET ASSETS 100.00%
=======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Sage Life Investment Trust
Money Market Fund
Economic momentum is strong coming into 2000. The Commerce Department reported
that the economy grew at an annualized rate of 5.8% last quarter. For the third
year in a row, the economy grew 4% or more. Additionally, there are numerous
signs that inflation is edging higher. Payroll employment increased by a very
strong 387,000 jobs in January, and the unemployment rate edged down to 4.0%.
The Employment Cost Index showed the cost of employee benefits rising faster
than wages in the fourth quarter, pushed up by higher prices for medical
insurance. Orders for durable goods jumped more than 4% in December, and
purchasing managers are reporting higher costs of materials, at the highest rate
in five years. Prices of oil products moved up sharply this winter. Higher oil
prices are working into airline fares and trucking rates. Housing was the only
sector that appeared to suffer at all from rising interest rates in 1999.
However, housing starts and new home sales both moved higher in December, and
housing activity remains near peak levels. The CPI, PPI, and GDP Price Deflator
all accelerated modestly in 1999.
30 Day Commercial Paper Rates
<TABLE>
<CAPTION>
Date Rate
<S> <C>
Feb-99 4.80
Mar-99 4.75
Apr-99 4.80
May-99 5.00
Jun-99 5.10
Jul-99 5.15
Aug-99 5.28
Sep-99 5.28
Oct-99 5.42
Nov-99 5.37
Dec-99 5.44
</TABLE>
As anticipated, the Federal Reserve raised short-term interest rates by another
25 basis points (the fourth time in this cycle) on February 2. Banks followed by
raising prime lending rates. We expect the Federal Reserve to continue pushing
up interest rates until the economy slows and unemployment moves higher. We
project economic growth to remain strong (i.e. averaging above 3%, and probably
well above) at least through the summer of 2000. Frankly, we do not see anything
on the horizon that will significantly dampen growth. Therefore it is likely
that the Fed will keep on pushing up short-term interest rates through much of
the year.
Net assets for the Sage Money Market Fund ending 12/31/99 were $2.086 million,
slightly higher than the net assets reported on 9/30/99 of $2.061 million. At
year-end, the portfolio consisted of high quality commercial paper having a
weighted-average maturity of 24 days. This is a reduction of 19 days relative to
9/30/99. During the same timeframe, the 30-day yield increased 58 basis points
to 5.34%. Relative performance remained positive at a monthly average of 15
basis points during the period.
30 Day Relative Yield
Month Sage MM Fund IBC MM Index
Mar-99 4.28 4.23
Apr-99 4.28 4.21
May-99 4.25 4.19
Jun-99 4.28 4.23
Jul-99 4.45 4.36
Aug-99 4.59 4.47
Sep-99 4.76 4.62
Oct-99 4.86 4.73
Nov-99 4.93 4.88
Dec-99 5.34 5.08
<PAGE>
Sage Life Investment Trust
Money Market Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Principal Market
Amount Value
- ---------------------- -----------------
<S> <C>
COMMERCIAL PAPER - 99.56%
$ 100,000 Allergan, Inc.,
6.05% due 01/18/2000+ $ 99,719
100,000 Baltimore Gas & Electric,
5.98% due 01/14/2000+ 99,788
100,000 Bayshore Fuel Co.,
6.15% due 01/14/2000+ 99,781
100,000 Bell Atlantic Network FDG,
5.90% due 01/19/2000+ 99,710
100,000 British Telecommunication plc,
6.61% due 01/18/2000+ 99,693
100,000 Coca-Cola Co.,
5.98% due 01/25/2000+ 99,609
100,000 Cogentrix of Richmond,
6.52% due 01/31/2000+ 99,467
100,000 Cooperative Association Tractor,
6.40% due 01/14/2000+ 99,772
100,000 Cooper River Funding, Inc.,
6.24% due 01/25/2000+ 99,591
100,000 Countrywide Home Loans, Inc.,
6.18% due 01/21/2000+ 99,663
100,000 General Electric Capital Corp.,
5.97% due 03/14/2000+ 98,820
100,000 General Motors Acceptance Corp.,
6.02% due 02/11/2000+ 99,328
100,000 Golden Peanut Co.,
5.80% due 02/14/2000+ 99,306
100,000 GTE Funding, Inc.,
6.00% due 01/18/2000+ 99,721
100,000 Hasbro, Inc.,
5.41% due 01/10/2000+ 99,867
100,000 Moat Funding LLC,
6.83% due 01/26/2000+ 99,535
85,000 MPF Ltd.,
6.90% due 01/28/2000+ 84,568
100,000 Progress Capital Holdings,
5.99% due 01/11/2000+ 99,836
100,000 Grainger (WW), Inc.,
6.56% due 01/18/2000+ 99,695
100,000 Walt Disney Co.,
5.75% due 01/18/2000+ 99,733
100,000 Zions Bancorporation,
6.25% due 01/18/2000+ 99,710
-----------------
Total Commercial Paper (Cost $2,076,912) 2,076,912
-----------------
</TABLE>
<PAGE>
Sage Life Investment Trust
Money Market Fund
December 31, 1999
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Shares Value
- ---------------------- -------------------
<S> <C>
SHORT TERM INVESTMENTS - 0.49%
10,127 Bank of New York Cash Reserves, 4.35% $ 10,127
-------------------
Total Short Term Investments (Cost $10,127) 10,127
-------------------
TOTAL INVESTMENTS - 100.05%
(Cost $2,087,039*) $ 2,087,039
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.05%) (970)
-------------------
NET ASSETS - 100.00% $ 2,086,069
===================
NET ASSETS consist of:
Paid-in capital $ 2,086,069
-------------------
Total Net Assets $ 2,086,069
===================
NET ASSET VALUE, offering price and redemption price $ 1.00
per share
===================
Number of Portfolio shares outstanding 2,086,069
===================
* Aggregate cost for Federal income tax purposes.
+ Rate represents annualized yield at date of
purchase.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Sage Life Investment Trust
Statements of Operations
For the Period Ended December 31, 1999
<TABLE>
<CAPTION>
S&P 500 EAFE Money Market
Equity Index Fund* Equity Index Fund** Fund*
------------------ ------------------- ------------
<S> <C> <C> <C>
Investment Income:
Dividends (net of foreign withholding taxes of $0, $27,711,
$0, respectively) $ 59,887 $ 305,010 -
Interest 4,640 12,075 93,796
---------- ------------ ----------
Total investment income 64,527 317,085 93,796
---------- ------------ ----------
Expenses:
Investment advisory fees (Note 2) 25,731 147,509 11,635
Professional fees 5,707 19,996 2,184
Insurance expense 842 2,950 322
Trustees' fees and expenses 1,263 4,425 483
---------- ------------ ----------
Total expenses 33,543 174,880 14,624
Waiver/reimbursement of investment advisory fees (Note 2) (7,813) (27,371) (2,989)
---------- ------------ ----------
Net expenses 25,730 147,509 11,635
---------- ------------ ----------
Net investment income 38,797 169,576 82,161
---------- ------------ ----------
Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions:
Net realized gain on investments 31,130 117,914 -
Net realized loss on foreign currency transactions - (25,759) -
Net change in unrealized appreciation of investments and
foreign currency transactions 870,197 4,400,470 -
---------- ------------ ----------
Net realized and unrealized gain of investments and
foreign currency transactions 901,327 4,492,625 -
---------- ------------ ----------
Net Increase in Net Assets Resulting from Operations $ 940,124 $ 4,662,201 $ 82,161
========== ============ ==========
</TABLE>
* The S&P 500 Equity Index Fund and Money Market Fund commenced operations on
February 19, 1999.
** The EAFE Equity Index Fund commenced operations on March 22, 1999.
See accompanying notes to financial statements.
<PAGE>
Sage Life Investment Trust
Statements of Changes in Net Assets
For the Period Ended December 31, 1999
<TABLE>
<CAPTION>
S&P 500 EAFE Money Market
Equity Index Fund* Equity Index Fund** Fund*
------------------ ------------------- ------------
<S> <C> <C> <C>
Operations:
Net investment income $ 38,797 $ 169,576 $ 82,161
Net realized gain on investments and foreign currency
transactions 31,130 92,155 -
Net change in unrealized appreciation of investments and
foreign currency transactions 870,197 4,400,470 -
----------- ------------- ------------
Net increase in net assets resulting from operations 940,124 4,662,201 82,161
----------- ------------- ------------
Distributions:
Dividends to shareholders from net investment income (38,797) (147,232) (82,161)
Distributions to shareholders from net realized gains on
investments (17,502) (32,207) -
----------- ------------- ------------
Total Distributions (56,299) (179,439) (82,161)
----------- ------------- ------------
Capital Share Transactions:
Proceeds from sale of shares 43,065 7,228 249,779
Shares issued in reinvestment of
dividends and distributions 56,299 179,440 82,161
Cost of shares redeemed (15,912) (2,647) (245,871)
----------- ------------- ------------
Net increase in net assets resulting from capital share
transactions 83,452 184,021 86,069
----------- ------------- ------------
Net increase in net assets 967,277 4,666,783 86,069
Net assets at beginning of period $ 5,000,000 $ 20,000,000 $ 2,000,000
----------- ------------- ------------
Net assets at end of period
(including undistributed net investment income of
$0, $22,345, and $0, respectively) $ 5,967,277 $ 24,666,783 $ 2,086,069
=========== ============= ============
Capital Share Transactions:
Shares sold 4,147 698 249,779
Shares issued in reinvestment of dividends and distributions 4,787 14,660 82,161
Shares repurchased (1,477) (257) (245,871)
----------- ------------- ------------
Net increase in shares from capital share transactions 7,457 15,101 86,069
=========== ============= ============
Shares at beginning of period 500,000 2,000,000 2,000,000
=========== ============= ============
</TABLE>
* The S&P 500 Equity Index Fund and Money Market Fund commenced operations on
February 19, 1999.
** The EAFE Equity Index Fund commenced operations on March 22, 1999.
See accompanying notes to financial statements.
<PAGE>
Sage Life Investment Trust
Financial Highlights
For the Period Ended December 31, 1999
The table below sets forth financial data for one share of capital stock
outstanding throughout the period presented.
<TABLE>
<CAPTION>
S&P 500 EAFE Money Market
Equity Index Fund* Equity Index Fund** Fund*
------------------ ------------------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 1.00
-------- ------- --------
Operations:
Net investment income 0.08 0.08 0.04
Net realized and unrealized gain on investments and foreign 1.79 2.25 -
-------- ------- --------
currency transactions
Total from Investment Operations 1.87 2.33 0.04
-------- ------- --------
Distributions to Shareholders:
Dividends from net investment income (0.08) (0.07) (0.04)
Distributions from net realized gains on investments (0.03) (0.02) -
-------- ------- --------
Total Distributions (0.11) (0.09) (0.04)
-------- ------- --------
Net Asset Value, End of Period $ 11.76 $ 12.24 $ 1.00
======== ======= ========
Total Return**** 18.72% 23.30% 4.03%
Ratios/Supplemental Data:***
Net Assets, end of period (in thousands) $ 5,967 $24,667 $ 2,086
Ratio of Net Investment Income to Average Net Assets
Before waiver/reimbursement of investment advisory fees 0.66% 0.86% 4.43%
After waiver/reimbursement of investment advisory fees 0.83% 1.03% 4.60%
Ratio of Expenses to Average Net Assets
Before waiver/reimbursement of investment advisory fees 0.72% 1.07% 0.82%
After waiver/reimbursement of investment advisory fees 0.55% 0.90% 0.65%
Portfolio Turnover 3% 10% N/A
</TABLE>
* The S&P 500 Equity Index Fund and Money Market Fund commenced operations on
February 19, 1999.
** The EAFE Equity Index Fund commenced operations on March 22, 1999.
*** All ratios have been annualized.
**** Total investment return is calculated assuming an initial investment made
at net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period and redemption on the
last day of the period. Total investment return is not annualized.
See accompanying notes to financial statements.
<PAGE>
Sage Life Investment Trust
Notes To Financial Statements
December 31, 1999
1. Summary of Significant Accounting Policies
The Sage Life Investment Trust (the "Trust") was organized as a Delaware
business trust on January 9, 1998 and is registered under the Investment Company
Act of 1940, as amended, as a diversified, no-load, open-end management
investment company. The Trust is a "series type" which issues separate series of
stock, each of which represents a separate diversified portfolio of investments.
The Trust is currently composed of three series: S&P 500 Equity Index Fund ("S&P
500 Fund"), EAFE Equity Index Fund ("EAFE Fund" and together with the S&P 500
Fund, the "Index Funds"), and the Money Market Fund (together with the Index
Funds, the "Funds" and each individually, a "Fund"). The S&P 500 Fund and the
Money Market Fund commenced investment operations on February 19, 1999. The EAFE
Fund commenced investment operations on March 22, 1999. Shares of the Funds are
available to separate accounts funding certain variable annuity and variable
life insurance contracts issued by various insurance companies and to various
pension and profit-sharing plans.
The S&P 500 Fund seeks to replicate as closely as possible the performance of
the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index") before
the deduction of fund expenses. The Fund generally intends to allocate its
investments among stocks in approximately the same proportions as they are
represented in the S&P 500 Index.
The EAFE Fund seeks to replicate as closely as possible the performance of the
Morgan Stanley Capital International Europe, Australasia, Far East Index ("EAFE
Index") before the deduction of fund expenses. The EAFE Index is a market
capitalization-weighted equity index. The Fund generally intends to allocate its
investments among stocks in approximately the same proportions as they are
represented in the EAFE Index.
The Index Funds are not managed according to traditional methods of "active"
investment management, which involve the buying and selling of securities based
upon economic financial and market analysis and investment judgement. Instead,
the Index Funds utilize a "passive" or "indexing" investment approach and
attempt to replicate the investment performance of their respective indexes
through statistical procedures.
The Money Market Fund seeks to provide high current income consistent with the
preservation of capital and liquidity. The Fund also intends to maintain a share
price of $1.00. The Fund seeks to achieve its objective by investing in high-
quality short-term money market instruments, such as U.S. Government
obligations, certificates of deposit, bankers' acceptances and commercial paper.
The Fund limits its investments to those short-term securities that it
determines present minimal credit risk and meet certain rating requirements. The
Fund maintains an average dollar-weighted portfolio maturity of 90 days or less.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Trust in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
Valuation: The Index Funds' investments, which are traded on recognized domestic
or foreign exchanges or for which price quotations are available, are valued
each business day on the basis of market valuations furnished by an independent
pricing service approved by the Board of Trustees. Securities are valued
<PAGE>
Sage Life Investment Trust
Notes To Financial Statements
December 31, 1999
based on the closing price of the security traded on that exchange prior to the
time when the Funds' assets are valued. Short-term obligations with remaining
maturities of 60 days or less are valued at amortized cost. Other short-term
debt securities are valued on a mark-to-market basis until such time as they
reach a remaining maturity of 60 days, whereupon they will be valued at
amortized cost using their value on the 61st day. All other securities and other
assets are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Board of
Trustees.
The Money Market Fund's investments are valued on the basis of amortized cost
under the guidance of the Board of Trustees, based on their determination that
this constitutes fair value. Amortized cost involves valuing a portfolio
instrument at its cost initially and, thereafter, assuming a constant
amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the market value of the instrument.
Foreign currency: Assets and liabilities denominated in foreign currencies are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies against the U.S. dollar as of the close of business immediately
preceding the time of valuation. Purchases and sales of portfolio securities are
translated at the rate of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated at the rate of exchange prevailing
when accrued.
The Trust does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on securities from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain/(loss) on investments.
Reported net realized gains or losses on foreign currency transactions arise
from sales and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Funds' books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
appreciation/(depreciation) on other assets and liabilities denominated in
foreign currencies arise from changes in the value of assets and liabilities
other than investments in securities at period end, resulting from changes in
the exchange rate.
Futures Contracts: The Index Funds may enter into financial futures contracts
which are contracts to buy a standard quantity of securities at a specified
price on a future date. The Funds are required to deposit either in cash or
securities an amount equal to a certain percentage of the contract amount.
Variation margin payments are made or received by the Fund each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for financial statement purposes as unrealized gains or losses by the
Fund. The Index Funds' investments in financial futures contracts are designed
to closely replicate the benchmark index used by the Funds. Risks arise from
possible illiquidity of the futures market and from movements in security
values.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
Options: The Index Funds may also purchase and write call and put options on
financial index futures contracts. When a Fund writes a call or put option, an
amount equal to the premium received is reflected as a liability. The liability
is subsequently "marked-to-market" to reflect the current market value of the
option written. The premium paid by a Fund for the purchase of a call or put
option is recorded as an
<PAGE>
Sage Life Investment Trust
Notes To Financial Statements
December 31, 1999
investment and subsequently "marked-to-market" to reflect the current market
value of the option purchased. The Funds are subject to the risk of an imperfect
correlation between movement in the price of the instrument and the price of the
underlying security or transaction. Risks may also arise due to illiquid
secondary markets for the instruments.
Federal Income Taxes: Each Fund is a separate entity for federal income tax
purposes. No provisions for federal income taxes have been made since each Fund
has complied and intends to continue to comply with provisions of Subchapter M
of the Internal Revenue Code of 1986, as amended, available to regulated
investment companies and to distribute its taxable income to shareholders
sufficient to relieve it from all, or substantially all, federal income taxes.
Securities Transactions and Investment Income: Investment transactions are
recorded on trade date. Dividend income and distributions to shareholders are
recorded on the ex-dividend date, except certain dividends from foreign
securities where the ex-dividend date may have passed are reported as income
when the Fund identifies the dividend. Interest income (including amortization
of premium and discount on securities) and expenses are accrued daily. Realized
gains and losses from investment transactions are recorded on an identified cost
basis which is the same basis the Trust uses for Federal income tax purposes.
Purchases of securities under agreements to resell are carried at cost, and the
related accrued interest is included in interest receivable.
Repurchase Agreements: The Funds may enter into repurchase agreements with a
bank, broker-dealer or other financial institution, which are secured by
obligations of the U.S. government. Each repurchase agreement is at least 100%
collateralized. However, in the event of default or bankruptcy by the
counterparty to the agreement, realization of collateral may be subject to
certain costs, losses or delays.
Dividends and Distributions to Shareholders: Each Fund distributes substantially
all of its net income and capital gains to shareholders each year. Each Index
Fund distributes capital gains and income dividends annually and the Money
Market Fund declares income dividends, daily and pays them monthly. All
dividends and capital gains distributions paid by a Fund will be automatically
reinvested, at net asset value, in that respective Fund.
Income dividends and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income, gains and losses on various investment securities held by a Fund, timing
differences in the recognition of income, gains and losses and differing
characterizations of distributions made by the Funds.
Risks Associated with Foreign Securities: The risks of investing in foreign
securities include fluctuations in foreign exchange rates, future political and
economic developments, and the possible imposition of exchange controls or other
foreign governmental laws and restrictions. In addition, with respect to certain
countries, there is the possibility of expropriation of assets, confiscatory
taxation, political or social instability or diplomatic developments which could
adversely affect investments in these countries.
There may be less publicly available information about a foreign company than
about a U.S. company, and foreign companies may not be subject to accounting,
auditing and financial reporting standards and requirements comparable to or as
uniform as those of U.S. companies. Non-U.S. securities markets, while growing
in volume, have, for the most part, substantially less volume than U.S. markets.
Securities of many foreign companies are less liquid and their prices more
volatile than securities of comparable U.S. companies.
<PAGE>
Sage Life Investment Trust
Notes To Financial Statements
December 31, 1999
Transaction costs of investing in non-U.S. securities markets are generally
higher than in the U.S. There is generally less government supervision and
regulation of exchanges, brokers and issuers than there is in the U.S. The Funds
might have greater difficulty taking appropriate legal action in non-U.S.
courts. Non-U.S. markets also have different clearance and settlement procedures
which in some markets have at times failed to keep pace with the volume of
transactions. This may create substantial delays and settlement failures that
could adversely affect a Fund's performance.
Adverse political, economic or social developments in the countries in which the
Fund has invested could undermine the value of the Fund's investments or prevent
the Fund from realizing their full value.
The currency of a country in which the Fund invests may fluctuate in value
relative to the U.S. dollar, which could affect the value of the investment
itself to U.S. investors.
Investments in foreign securities involve higher costs than investments in U.S.
securities, including higher transaction costs as well as the imposition of
additional taxes by foreign governments. In addition, foreign investments may
include additional risks associated with the level of currency exchange rates,
less complete financial information about the issuers, less market liquidity,
and political instability. Future political and economic developments, the
possible imposition of withholding taxes on interest income, the possible
seizure or nationalization of foreign holdings, the possible establishment of
exchange controls, or the adoption of other governmental restrictions might
adversely affect the payment of principal and interest on foreign obligations.
Additionally, foreign banks and foreign branches of domestic banks may be
subject to less stringent reserve requirements, and to different accounting,
auditing and recordkeeping requirements.
2. Investment Advisory Fees and Other Transactions With Affiliates
Sage Advisors, Inc. ("Sage"), a wholly-owned subsidiary of Sage Insurance Group,
Inc., is the investment manager of the Funds. In connection with its role as
investment manager of the Funds, Sage pays all the Funds' expenses, except
brokerage fees, taxes, interest, fees and expenses of the non-interested
Trustees (including Fund counsel fees), and extraordinary expenses. As
compensation for services rendered, the Funds pay Sage a monthly fee based on a
percentage of the average daily net assets of each Fund at the following annual
rates: S&P 500 Fund - 0.55%; EAFE Fund - 0.90%; Money Market Fund - 0.65%.
Sage has agreed to waive a portion of its management fees for the Funds until
April 30, 2000. With such waivers, the Funds will pay the following management
fees to Sage: S&P 500 Fund - 0.38%; EAFE Fund - 0.73%; Money Market Fund -
0.48%.
Sage has retained the services of State Street Global Advisors to serve as the
investment adviser to the Index Funds, and has retained the services of Conning
Asset Manangement to serve as the investment adviser to the Money Market Fund.
As compensation for the advisers' services and the related expenses they incur
with respect to each Fund, Sage pays the applicable adviser a fee, computed
daily and payable monthly (quarterly with respect to the Money Market Fund),
equal on an annual basis with respect to each Fund's average daily net assets as
follows:
S&P 500 Fund: 0.05% of the first $50 million of assets under management,
0.04% of the next $50 million of assets under management, and 0.02% on
amounts in excess of $100 million of assets under management with a minimum
annual fee of $50,000.
<PAGE>
Sage Life Investment Trust
Notes To Financial Statements
December 31, 1999
EAFE Fund: 0.15% of the first $50 million of assets under management, 0.10%
of the next $50 million of assets under management, and 0.08% on amounts in
excess of $100 million of assets under management with a minimum annual fee
of $65,000.
Money Market Fund: 0.15% of the first $100 million of assets under
management, 0.10% of the next $200 million of assets under management, and
0.075% on amounts in excess of $300 million of assets under management.
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. Government and short-term investments, for the period ended December 31,
1999 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
<S> <C> <C>
S&P 500 Fund ...................... $ 5,176,123 $ 154,975
EAFE Fund........................... 22,151,546 2,073,326
</TABLE>
4. Tax Information (Unaudited)
Of the ordinary income (including short-term capital gain) distributions made by
the S&P 500 Fund during the fiscal year ended December 31, 1999, 80.61% qualify
for the dividend received deduction available to corporate shareholders.
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Trustees
Sage Life Investment Trust
We have audited the accompanying statements of net assets of Sage Life
Investment Trust (comprising, respectively, the S&P 500 Equity Index Fund, EAFE
Equity Index Fund, and Money Market Fund) (the "Funds") as of December 31, 1999,
and the related statements of operations, statements of changes in net assets
and financial highlights for the period then ended. 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 audits.
We conducted our audits 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 and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the custodian and brokers. 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 above listed funds constituting Sage Life Investment Trust at December
31, 1999, and the results of their operations, changes in their net assets and
their financial highlights for the period then ended, in conformity with
accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Ernst & Young LLP
February 4, 2000
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