<PAGE>
VIP Global Opportunities Fund
VIP Growth Fund
VIP Diversified Assets Fund
VIP Fixed IncomeFund
VIP Money MarketFund
[GRAPHIC]
USAllianz VIP Funds
Semi-Annual Report
June 30, 2000
[LOGO OF USALLIANZ FUNDS]
<PAGE>
This report is submitted for the general information of the shareholders of the
Funds. The report is not authorized for distribution to prospective investors
in the Funds unless preceded or accompanied by an effective prospectus, which
contains details concerning the sales charges and other pertinent information.
<PAGE>
Table of Contents
Letter to Shareholders
Page 1
Schedules of Portfolio Investments
Page 3
Statements of Assets and Liabilities
Page 13
Statements of Operations
Page 14
Statements of Changes in Net Assets
Page 15
Notes to Financial Statements
Page 17
Financial Highlights
Page 20
<PAGE>
Letter to Shareholders
Dear Shareholders,
We are pleased to present this semi-annual report for the USAllianz Variable
Insurance Products Trust (the "USAllianz VIP Funds") for the six-month period
ended June 30, 2000.
The stock and bond markets were volatile during the period. The U.S. economy's
stronger-than-expected growth rate fueled fears of inflation and caused the
Federal Reserve ("the Fed") to raise short-term interest rates in an effort to
slow economic growth. That, in turn, led to losses in some sectors of the
financial markets.
A Volatile Period for Stocks and Bonds
Overall, stocks posted a gain, with the Standard and Poor's 500 Index/1/
returning a -0.43% during the six-month period ended June 30, 2000. That
performance masked significant price movements. Stocks posted strong gains
during the first half of the period, driven by shares of small-cap technology
and Internet-related companies. However, many high-flying technology and
Internet shares suffered severe losses beginning in April. This correction in
part reflected investors' concerns about the high valuations of these shares.
The performance of the bond market also was uneven. Strong U.S. economic growth
and fears of rising inflation caused the Fed to raise short-term interest rates
by 100 basis points (1.0%) during the period. Short-term bonds suffered in that
environment. However, long-term issues unexpectedly performed well due to the
Fed's decision to buy back long-term Treasuries, effectively reducing the
supply of such issues.
Looking Ahead
We believe interest rates may rise further in the short term. However, we
anticipate that the Fed's rate hikes eventually will slow the economy and head
off inflation leading to an eventual decline in interest rates over the long
term.
In our opinion, stocks should benefit in that environment. During the spring
correction investors favored shares of companies with strong fundamentals over
speculative stocks of unproven firms. Going forward, we expect to see a return
of fundamental stock analysis and less enthusiasm for many "new economy"
stocks.
1
<PAGE>
The stock market's recent volatility is a good reminder that it is impossible
to predict how stocks and bonds will perform in the short term--and that the
best way to achieve your financial goals is to build and maintain a long-term
portfolio that is diversified across stocks, bonds and cash investments. Such
an approach should help you weather short-term market volatility, and provide a
balance between strong growth potential and mild risk.
Thank you for your confidence in the USAllianz VIP Funds. We will work hard to
retain that trust, bringing to bear our investment expertise and our belief in
the power of well-managed portfolios. If you have questions about the Funds,
please call our shareholder representatives at 1-800-624-0197.
Sincerely,
[PHOTO OF DAVID P. MARKS]
/s/ David P. Marks
David P. Marks
Chief Investment Officer, Allianz of America, Inc.
Chairperson, USAllianz VIP Trust
/1/The Standard & Poor's 500 Stock Index is an unmanaged index that represents
the performance of the large-capitalization equity market. The index does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
USAllianz Variable Insurance Products Trust is NOT
INSURED BY THE FDIC or any other governmental agency,
are not deposits or obligations of, or endorsed or
guaranteed by, USAllianz of America, Inc., the
distributor or any of their affiliates, and involves
investment risks, including the possible loss of the
principal amount invested.
2
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Growth Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
-------- -----------
<C> <S> <C>
<CAPTION>
Common Stocks (94.2%)
<C> <S> <C>
Aerospace/Defense (0.9%)
2,000 United Technologies Corp. .............................. $ 117,750
-----------
Banking/Financial Services (12.2%)
1,950 American Express Co..................................... 101,644
2,000 Bank of America Corp.................................... 86,000
5,000 Citigroup, Inc.......................................... 301,249
3,500 Fleet Boston Financial Corp............................. 119,000
2,250 Legg Mason, Inc......................................... 112,500
900 Lehman Brothers Holdings, Inc........................... 85,106
3,750 Mellon Financial Corp................................... 136,641
1,250 Merrill Lynch & Co...................................... 143,750
750 Providian Financial Corp................................ 67,500
2,000 State Street Corp....................................... 212,125
4,500 Wells Fargo Co.......................................... 174,375
-----------
1,539,890
-----------
Beverages (1.7%)
1,100 Coca-Cola Co............................................ 63,181
3,500 PepsiCo, Inc............................................ 155,532
-----------
218,713
-----------
Biotechnology (4.0%)
2,250 Amgen, Inc.*............................................ 158,062
400 Cepheid, Inc.*.......................................... 3,525
1,500 Chiron Corp.*........................................... 71,250
1,000 IDEC Pharmaceuticals Corp.*............................. 117,313
3,000 Immunex Corp.*.......................................... 148,313
150 PE Corp.--Celera Genomics Group*........................ 14,025
-----------
512,488
-----------
Building Materials (0.1%)
1,000 Masco Corp.............................................. 18,063
-----------
Chemicals (0.6%)
2,000 Praxair, Inc............................................ 74,875
-----------
Computers (13.9%)
1,000 America Online, Inc.*................................... 52,750
6,000 Cisco Systems, Inc.*.................................... 381,374
675 Computer Sciences Corp.*................................ 50,414
1,000 Electronic Arts, Inc.*.................................. 72,938
1,000 FirstWorld Communications, Inc., Class B *.............. 10,500
600 Inktomi Corp.*.......................................... 70,950
1,750 International Business Machines Corp. .................. 191,734
600 InterWorld Corp.*....................................... 12,300
5,000 Microsoft Corp.*........................................ 399,999
500 Scient Corp.*........................................... 22,063
4,000 Sun Microsystems, Inc.*................................. 363,750
2,250 Via Net.Works, Inc.*.................................... 34,734
700 Yahoo!, Inc.*........................................... 86,713
-----------
1,750,219
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
-------- -----------
<C> <S> <C>
<CAPTION>
Common Stocks, continued
<C> <S> <C>
Electric Utilities (2.1%)
5,700 AES Corp.*.............................................. $ 260,063
-----------
Electrical Equipment (4.1%)
9,750 General Electric Co..................................... 516,750
-----------
Electronics (10.4%)
3,000 Applied Materials, Inc.*................................ 271,875
400 Broadcom Corp., Class A*................................ 87,575
3,500 Intel Corp.............................................. 467,906
2,000 Lam Research Corp.*..................................... 75,000
1,000 Micron Technology, Inc.*................................ 88,063
1,750 Novellus Systems, Inc.*................................. 98,984
3,400 Texas Instruments, Inc.................................. 233,538
-----------
1,322,941
-----------
Health Care (2.0%)
5,000 Medtronic, Inc. ........................................ 249,063
-----------
Household (3.2%)
2,000 Clorox Co. ............................................. 89,625
1,300 Estee Lauder Companies, Inc., Class A................... 64,269
2,000 Gillette Co............................................. 69,875
1,100 Johnson & Johnson....................................... 112,062
1,250 Procter & Gamble Co. ................................... 71,563
-----------
407,394
-----------
Manufacturing (1.2%)
2,750 Illinois Tool Works, Inc. .............................. 156,750
-----------
Media (1.9%)
1,000 Gannett Co., Inc. ...................................... 59,813
2,000 Omnicom Group........................................... 178,125
-----------
237,938
-----------
Oil/Gas (6.7%)
3,000 BP Amoco plc, ADR....................................... 169,687
500 Dynegy, Inc., Class A................................... 34,156
1,000 Enron Corp. ............................................ 64,500
4,500 Exxon Mobil Corp. ...................................... 353,249
1,500 Halliburton Co. ........................................ 70,781
1,900 Petroleum Geo-Services A/S, ADR*........................ 32,419
2,250 R & B Falcon Corp.*..................................... 53,016
500 Schlumberger Ltd........................................ 37,313
2,300 Stolt Comex Seaway SA, ADR*............................. 32,488
-----------
847,609
-----------
Paper/Forest Products (0.6%)
3,000 Mead Corp............................................... 75,750
-----------
Pharmaceuticals (5.8%)
1,900 Biochem Pharma, Inc.*................................... 46,788
1,800 Bristol-Myers Squibb Co. ............................... 104,850
1,250 Merck & Co., Inc. ...................................... 95,781
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Growth Fund
Schedule of Portfolio Investments, Continued
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
-------- -----------
<C> <S> <C>
<CAPTION>
Common Stocks, continued
<C> <S> <C>
Pharmaceuticals, continued
8,450 Pfizer, Inc............................................. $ 405,600
1,500 Schering-Plough Corp.................................... 75,750
-----------
728,769
-----------
Retail/Wholesale (7.3%)
3,500 Costco Wholesale Corp.*................................. 115,500
2,000 CVS Corp................................................ 80,000
500 Gap, Inc................................................ 15,625
5,500 Home Depot, Inc......................................... 274,655
1,500 Kroger Co.*............................................. 33,094
3,000 McDonald's Corp. ....................................... 98,813
750 Target Corp............................................. 43,500
4,500 Wal-Mart Stores, Inc.................................... 259,313
-----------
920,500
-----------
Services (2.0%)
4,100 Automatic Data Processing, Inc. ........................ 219,606
750 ChoicePoint, Inc.*...................................... 33,375
-----------
252,981
-----------
Telecommunications (12.8%)
2,500 ADC Telecommunications, Inc.*........................... 209,687
4,000 AT&T Corp............................................... 126,500
200 AT&T Wireless Group*.................................... 5,575
3,000 Bell Atlantic Corp...................................... 152,438
2,000 Intermedia Communications, Inc.*........................ 59,500
3,000 Lucent Technologies, Inc................................ 177,750
1,500 Nextel Communications, Inc., Class A*................... 91,781
2,800 Nortel Networks Corp., ADR.............................. 191,100
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
<CAPTION>
Common Stocks, continued
<C> <S> <C>
Telecommunications, continued
500 Qualcomm, Inc.*....................................... $ 30,000
1,850 SBC Communications, Inc............................... 80,013
3,750 Sprint Corp........................................... 191,249
1,150 US West, Inc.......................................... 98,613
6,000 Winstar Communications, Inc.*......................... 203,249
-----------
1,617,455
-----------
Tobacco (0.5%)
2,500 Philip Morris Cos., Inc............................... 66,406
-----------
Travel/Entertainment (0.2%)
1,500 Carnival Corp......................................... 29,250
-----------
Total Common Stocks 11,921,617
-----------
Money Market Mutual Funds (2.6%)
331,183 Valiant Sweep Account................................. 331,183
-----------
Total Money Market Mutual Funds 331,183
-----------
U.S. Government Agency Mortgages (3.5%)
Federal Home Loan Bank (2.3%)
$300,000 6.31%, 07/26/00....................................... 298,747
-----------
Federal National Mortgage Association (1.2%)
150,000 6.41%, 07/06/00....................................... 149,918
-----------
Total U.S. Government Agency Mortgages 448,665
-----------
Total Investments (Cost $11,812,768) (a)--100.3% 12,701,465
Liabilities in excess of other assets--(0.3)% (34,685)
-----------
Total Net Assets--100.0% $12,666,780
===========
</TABLE>
--------
* Non-income producing security.
ADR--American Depository Receipt.
(a) Represents cost for federal tax purposes and differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $1,783,880
Unrealized depreciation....... (895,183)
----------
Net unrealized appreciation... $ 888,697
==========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Fixed Income Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
Corporate Bonds (59.5%)
Aerospace/Defense (3.0%)
$400,000 Raytheon Co., 6.40%, 12/15/18........................... $ 331,371
-----------
Autos (5.4%)
200,000 Delphi Automotive Systems Corp., 6.125%, 05/01/04....... 188,502
400,000 Ford Motor Co., 9.00%, 09/15/01......................... 407,833
-----------
596,335
-----------
Banking/Financial Services (21.1%)
400,000 Associates Corp., 5.80%, 04/20/04....................... 374,870
250,000 Bank of America Corp., 6.625%, 06/15/04................. 242,817
400,000 Household Finance Corp., 6.50%, 11/15/08................ 362,842
200,000 Inter-American Development Bank, 6.75%, 07/15/27........ 190,570
250,000 Keycorp Capital III, 7.75%, 07/15/29.................... 217,373
250,000 KFW International Finance, 7.125%, 02/15/05............. 250,537
400,000 Merrill Lynch & Co., 6.50%, 07/15/18.................... 336,864
250,000 Morgan Stanley Dean Witter & Co., 7.75%, 06/15/05....... 251,304
93,910 Washington Mutual, Inc., 6.42%, 06/25/24 (b)............ 93,723
-----------
2,320,900
-----------
Beverages (2.2%)
250,000 Diageo Capital plc, 6.625%, 06/24/04.................... 243,379
-----------
Electric Utilities (4.5%)
250,000 Dominion Resources, Inc., 8.125%, 06/15/10.............. 252,304
250,000 Indiana Michigan Power Co., 6.875%, 07/01/04............ 242,188
-----------
494,492
-----------
Insurance (3.6%)
400,000 St. Paul Companies, Inc., 7.875%, 04/15/05.............. 402,082
-----------
Oil/Gas (2.1%)
250,000 Conoco, Inc., 6.35%, 04/15/09........................... 232,961
-----------
Paper/Forest Products (3.1%)
400,000 Weyerhaeuser Co., 6.95%, 10/01/27....................... 344,729
-----------
Retail/Wholesale (2.3%)
250,000 Wal-Mart Stores, Inc., 7.50%, 05/15/04.................. 254,383
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
Corporate Bonds, continued
Telecommunications (6.4%)
$250,000 AT&T Corp., 5.625%, 03/15/04............................ $ 235,221
250,000 Deutsche Telekom AG, 7.75%, 06/15/05.................... 251,706
250,000 US West Capital Funding, Inc., 6.875%, 07/15/28......... 214,856
-----------
701,783
-----------
Transportation (2.2%)
250,000 CSX Corp., 7.00%, 09/15/02.............................. 246,418
-----------
Travel/Entertainment (3.6%)
400,000 Walt Disney Co., 6.75%, 03/30/06........................ 391,531
-----------
Total Corporate Bonds 6,560,364
-----------
Asset Backed Securities (4.2%)
250,000 Chemical Master Credit Card Trust I, 5.98%, 09/15/08.... 236,882
240,000 Discover Card Master Trust I, 6.05%, 08/18/08 .......... 227,009
-----------
Total Asset Backed Securities 463,891
-----------
Money Market Mutual Funds (4.1%)
449,445 Valiant Sweep Account................................... 449,445
-----------
Total Money Market Mutual Funds 449,445
-----------
Foreign Government Bonds (2.3%)
250,000 Ontario (Province of), 7.625%, 06/22/04................. 252,851
-----------
Total Foreign Government Bonds 252,851
-----------
U.S. Government Agency Mortgages (20.0%)
Federal National Mortgage Association (20.0%)
200,000 6.45%, 08/01/00......................................... 198,940
250,000 6.50%, 02/01/30......................................... 235,235
400,000 7.50%, 05/01/30......................................... 388,658
367,806 Pool #503222, 6.50%, 06/01/29........................... 346,909
492,993 Pool #504173, 6.50%, 10/01/29........................... 464,985
608,231 Pool #517110, 6.50%, 11/01/29........................... 573,675
-----------
Total U.S. Government Agency Mortgages 2,208,402
-----------
U.S. Government Agency Debt (2.1%)
Federal Home Loan Mortgage Corporation (2.1%)
250,000 5.00%, 01/15/04......................................... 234,232
-----------
Total U.S. Government Agency Debt 234,232
-----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Fixed Income Fund
Schedule of Portfolio Investments, Continued
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
U.S. Treasury Obligations (15.1%)
U.S. Treasury Bonds (7.5%)
$410,000 U.S. Treasury Bond, 9.25%, 02/15/16.................... $ 531,206
125,000 U.S. Treasury Bond, 7.50%, 11/15/16.................... 140,781
150,000 U.S. Treasury Bond, 6.25%, 05/15/30.................... 157,453
-----------
829,440
-----------
U.S. Treasury Inflation Indexed Obligations (0.5%)
52,078 U.S. Treasury Inflation Indexed Note, 3.875%, 04/15/29. 51,932
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
U.S. Treasury Obligations, continued
U.S. Treasury Notes (7.1%)
$125,000 U.S. Treasury Note, 5.875%, 11/15/04................... $ 123,125
100,000 U.S. Treasury Note, 6.625%, 05/15/07................... 102,063
535,000 U.S. Treasury Note, 6.50%, 02/15/10.................... 553,223
-----------
778,411
-----------
Total U.S. Treasury Obligations 1,659,783
-----------
Total Investments
(Cost $11,951,544) (a)--107.3% 11,828,968
Liabilities in excess of other assets--(7.3)% (806,161)
-----------
Total Net Assets--100.0% $11,022,807
===========
</TABLE>
--------
(a) Represents cost for federal tax purposes and differs from value by net
unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 50,003
Unrealized depreciation... (172,579)
---------
Net unrealized
depreciation.............. $(122,576)
=========
</TABLE>
(b) Floating rate note.
See accompanying notes to financial statements.
6
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Diversified Assets Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
-------- -----------
<C> <S> <C>
Common Stocks (26.7%)
Aerospace/Defense (0.3%)
560 United Technologies Corp. .............................. $ 32,970
-----------
Banking/Financial Services (3.5%)
546 American Express Co. ................................... 28,460
560 Bank of America Corp. .................................. 24,080
1,400 Citigroup, Inc. ........................................ 84,350
980 Fleet Boston Financial Corp. ........................... 33,320
630 Legg Mason, Inc. ....................................... 31,500
252 Lehman Brothers Holdings, Inc. ......................... 23,830
1,040 Mellon Financial Corp. ................................. 37,895
350 Merrill Lynch & Co. .................................... 40,250
300 Providian Financial Corp. .............................. 27,000
560 State Street Corp. ..................................... 59,395
1,260 Wells Fargo Co. ........................................ 48,825
-----------
438,905
-----------
Beverages (0.5%)
308 Coca-Cola Co. .......................................... 17,691
980 PepsiCo, Inc. .......................................... 43,549
-----------
61,240
-----------
Biotechnology (1.1%)
490 Amgen, Inc.*............................................ 34,423
400 Cepheid, Inc.*.......................................... 3,525
420 Chiron Corp.*........................................... 19,950
280 IDEC Pharmaceuticals Corp.*............................. 32,848
840 Immunex Corp.*.......................................... 41,527
42 PE Corp.--Celera Genomics Group*........................ 3,927
-----------
136,200
-----------
Building Materials (0.0%)
280 Masco Corp. ............................................ 5,058
-----------
Chemicals (0.2%)
560 Praxair, Inc. .......................................... 20,965
-----------
Computers (3.9%)
280 America Online, Inc.*................................... 14,770
1,680 Cisco Systems, Inc.*.................................... 106,784
210 Computer Sciences Corp.*................................ 15,684
280 Electronic Arts, Inc.*.................................. 20,423
210 FirstWorld Communications, Inc., Class B*............... 2,205
168 Inktomi Corp.*.......................................... 19,866
490 International Business Machines Corp. .................. 53,686
168 InterWorld Corp.*....................................... 3,444
1,400 Microsoft Corp.*........................................ 111,999
132 Scient Corp.*........................................... 5,825
1,120 Sun Microsystems, Inc.*................................. 101,850
700 Via Net.Works, Inc.*.................................... 10,806
200 Yahoo!, Inc.*........................................... 24,775
-----------
492,117
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
-------- -----------
<C> <S> <C>
Common Stocks, continued
Electric Utilities (0.6%)
1,600 AES Corp.*.............................................. $ 73,000
-----------
Electrical Equipment (1.2%)
2,730 General Electric Co. ................................... 144,690
-----------
Electronics (2.9%)
840 Applied Materials, Inc.*................................ 76,124
112 Broadcom Corp., Class A*................................ 24,521
980 Intel Corp. ............................................ 131,013
560 Lam Research Corp.*..................................... 21,000
280 Micron Technology, Inc.*................................ 24,658
490 Novellus Systems, Inc.*................................. 27,716
952 Texas Instruments, Inc. ................................ 65,391
-----------
370,423
-----------
Health Care (0.6%)
1,400 Medtronic, Inc. ........................................ 69,738
-----------
Household (0.9%)
560 Clorox Co. ............................................. 25,095
364 Estee Lauder Companies, Inc., Class A................... 17,995
546 Gillette Co. ........................................... 19,076
308 Johnson & Johnson....................................... 31,377
350 Procter & Gamble Co. ................................... 20,038
-----------
113,581
-----------
Manufacturing (0.3%)
770 Illinois Tool Works, Inc. .............................. 43,890
-----------
Media (0.6%)
300 Gannett Co., Inc. ...................................... 17,944
600 Omnicom Group........................................... 53,437
-----------
71,381
-----------
Oil/Gas (1.9%)
840 BP Amoco plc, ADR....................................... 47,512
140 Dynegy, Inc., Class A................................... 9,564
280 Enron Corp. ............................................ 18,060
1,260 Exxon Mobil Corp. ...................................... 98,909
420 Halliburton Co. ........................................ 19,819
600 Petroleum Geo-Services A/S, ADR*........................ 10,238
630 R & B Falcon Corp.*..................................... 14,844
140 Schlumberger Ltd. ...................................... 10,448
700 Stolt Comex Seaway SA, ADR*............................. 9,888
-----------
239,282
-----------
Paper/Forest Products (0.2%)
840 Mead Corp. ............................................. 21,210
-----------
Pharmaceuticals (1.6%)
532 Biochem Pharma, Inc.*................................... 13,101
560 Bristol-Myers Squibb Co. ............................... 32,620
350 Merck & Co., Inc. ...................................... 26,819
2,366 Pfizer, Inc. ........................................... 113,567
420 Schering-Plough Corp. .................................. 21,210
-----------
207,317
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
Common Stocks, continued
Retail/Wholesale (2.0%)
980 Costco Wholesale Corp.*................................ $ 32,340
560 CVS Corp. ............................................. 22,400
140 Gap, Inc. ............................................. 4,375
1,540 Home Depot, Inc. ...................................... 76,903
420 Kroger Co.*............................................ 9,266
840 McDonald's Corp. ...................................... 27,668
200 Target Corp. .......................................... 11,600
1,260 Wal-Mart Stores, Inc. ................................. 72,608
-----------
257,160
-----------
Services (0.6%)
1,148 Automatic Data Processing, Inc. ....................... 61,490
210 ChoicePoint, Inc.*..................................... 9,345
-----------
70,835
-----------
Telecommunications (3.6%)
700 ADC Telecommunications, Inc.*.......................... 58,712
1,120 AT&T Corp. ............................................ 35,420
60 AT&T Wireless Group*................................... 1,673
840 Bell Atlantic Corp. ................................... 42,683
560 Intermedia Communications, Inc.*....................... 16,660
840 Lucent Technologies, Inc. ............................. 49,770
420 Nextel Communications, Inc., Class A*.................. 25,699
784 Nortel Networks Corp., ADR............................. 53,508
140 Qualcomm, Inc.*........................................ 8,400
600 SBC Communications, Inc. .............................. 25,950
1,050 Sprint Corp. .......................................... 53,549
322 US West, Inc........................................... 27,612
1,680 Winstar Communications, Inc.*.......................... 56,909
-----------
456,545
-----------
Tobacco (0.1%)
700 Philip Morris Cos., Inc. .............................. 18,594
-----------
Travel/Entertainment (0.1%)
420 Carnival Corp. ........................................ 8,190
-----------
Total Common Stocks 3,353,291
-----------
Corporate Bonds (42.7%)
Autos (5.5%)
$250,000 DaimlerChrysler Holding Corp., 7.09%, 08/23/02 (b)..... 250,590
200,000 Delphi Automotive Systems Corp., 6.125%, 05/01/04...... 188,502
250,000 Ford Motor Co., 9.00%, 09/15/01........................ 254,896
-----------
693,988
-----------
Banking/Financial Services (15.8%)
250,000 American General Finance Corp., 0.00%, 06/11/03 (b).... 249,769
250,000 Associates Corp., 5.80%, 04/20/04...................... 234,295
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
Corporate Bonds, continued
Banking/Financial Services, continued
$250,000 Bank of America Corp., 6.625%, 06/15/04................ $ 242,817
200,000 Chase Manhattan Corp., 6.375%, 04/01/08................ 182,861
250,000 Household Finance Corp., 6.50%, 11/15/08............... 226,777
250,000 Japan Bank, 7.125%, 06/20/05........................... 249,802
250,000 KFW International Finance, 7.125%, 02/15/05............ 250,536
250,000 Morgan Stanley Dean Witter & Co., 8.00%, 06/15/10...... 252,463
93,910 Washington Mutual, Inc., 6.42%, 06/25/24 (b)........... 93,723
-----------
1,983,043
-----------
Beverages (1.9%)
250,000 Diageo Capital plc, 6.625%, 06/24/04................... 243,379
-----------
Electric Utilities (5.9%)
250,000 Dominion Resources, Inc., 8.125%, 06/15/10............. 252,303
250,000 FPL Group Capital, Inc., 7.625%, 09/15/06.............. 250,266
250,000 Indiana Michigan Power Co., 6.875%, 07/01/04........... 242,188
-----------
744,757
-----------
Insurance (1.9%)
250,000 Hartford Life, Inc., 6.90%, 06/15/04................... 243,764
-----------
Oil/Gas (3.8%)
250,000 Conoco, Inc., 6.35%, 04/15/09.......................... 232,961
250,000 Enron Corp., 6.45%, 11/15/01........................... 247,305
-----------
480,266
-----------
Paper/Forest Products (2.0%)
250,000 International Paper Co., 8.125%, 07/08/05.............. 252,206
-----------
Retail/Wholesale (2.0%)
250,000 Wal-Mart Stores, Inc., 7.50%, 05/15/04................. 254,383
-----------
Telecommunications (1.9%)
250,000 AT&T Corp., 5.625%, 03/15/04........................... 235,221
-----------
Transportation (2.0%)
250,000 CSX Corp., 7.00%, 09/15/02............................. 246,418
-----------
Total Corporate Bonds 5,377,425
-----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
Asset Backed Securities (5.2%)
$250,000 Citibank Credit Card Master Trust I, 6.10%, 05/15/08... $ 236,500
250,000 Discover Card Master Trust, 6.20%, 05/16/06............ 241,900
180,000 Fleet Credit Card Master Trust, 6.00%, 11/15/05........ 175,433
-----------
Total Asset Backed Securities 653,833
-----------
Money Market Mutual Funds (3.1%)
386,480 Valiant Sweep Account.................................. 386,480
-----------
Total Money Market Mutual Funds 386,480
-----------
Foreign Government Bonds (2.0%)
250,000 Ontario (Province of), 7.625%, 06/22/04................ 252,851
-----------
Total Foreign Government Bonds 252,851
-----------
U.S. Government Agency Mortgages (14.9%)
Federal Home Loan Bank (3.6%)
300,000 6.27%, 07/06/00........................................ 299,837
150,000 6.31%, 07/26/00........................................ 149,373
-----------
449,210
-----------
Federal National Mortgage Association (11.3%)
700,000 6.45%, 08/14/00........................................ 694,676
200,000 7.50%, 05/01/30........................................ 194,329
572,686 Pool #504173, 6.50%, 10/01/29.......................... 540,149
-----------
1,429,154
-----------
Total U.S. Government Agency Mortgages 1,878,364
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
U.S. Government Agency Debt (1.9%)
Federal Home Loan Mortgage Corporation (1.9%)
$250,000 5.00%, 01/15/04...................................... $ 234,232
-----------
Total U.S. Government Agency Debt 234,232
-----------
U.S. Treasury Obligations (5.0%)
U.S. Treasury Inflation Indexed Obligations (0.2%)
26,039 U.S. Treasury Inflation Indexed Note, 3.875%,
04/15/29............................................ 25,966
U.S. Treasury Notes (4.8%)
85,000 U.S. Treasury Note, 6.375%, 01/31/02................. 84,814
500,000 U.S. Treasury Note, 6.50%, 02/15/10.................. 517,031
-----------
601,845
-----------
Total U.S. Treasury Obligations 627,811
-----------
Total Investments
(Cost $12,570,705) (a)--101.5% 12,764,287
Liabilities in excess of other assets--(1.5)% (185,750)
-----------
Total Net Assets--100.0% $12,578,537
===========
</TABLE>
--------
* Non-income producing security.
ADR--American Depository Receipt.
(a) Represents cost for federal tax purposes and differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $ 541,767
Unrealized depreciation.... (348,185)
---------
Net unrealized
appreciation............... $ 193,582
=========
</TABLE>
(b) Floating rate note.
See accompanying notes to financial statements.
9
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Money Market Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
<CAPTION>
Commercial Paper (91.9%)
<C> <S> <C>
Banking/Financial Services (22.1%)
$400,000 CSW Credit, Inc., 6.50%, 07/05/00...................... $ 399,710
400,000 Henkel, Inc., 6.53%, 08/10/00.......................... 397,098
400,000 KFW International Finance, Inc., 6.56%, 09/05/00....... 395,189
400,000 Teco Finance, Inc., 6.55%, 08/14/00.................... 396,798
400,000 Transamerica Financial, 6.59%, 07/10/00................ 399,341
400,000 USAA Capital Corp., 6.52%, 08/14/00.................... 396,812
-----------
2,384,948
-----------
Beverages (3.7%)
400,000 Coca-Cola Co., 6.53%, 09/07/00......................... 395,066
-----------
Biotechnology (2.5%)
275,000 Amgen, Inc., 6.51%, 07/12/00........................... 274,453
-----------
Building (3.7%)
400,000 Ciesco LP, 6.55%, 07/05/00............................. 399,709
-----------
Energy (3.7%)
400,000 Equitable Resources, Inc., 6.54%, 07/06/00............. 399,637
-----------
Food (14.8%)
400,000 Campbell Soup Co., 6.50%, 07/17/00..................... 398,845
400,000 General Mills, Inc., 6.54%, 09/11/00................... 394,768
400,000 H.J. Heinz Co., 6.52%, 08/01/00........................ 397,754
400,000 Hershey Foods Corp., 6.52%, 08/08/00................... 397,247
-----------
1,588,614
-----------
Health Care (3.0%)
325,000 Becton, Dickinson & Co., 6.55%, 08/07/00............... 322,819
-----------
Household (7.4%)
400,000 Gillette Co., 6.55%, 08/10/00.......................... 397,089
400,000 Procter & Gamble Co., 6.50%, 07/19/00.................. 398,700
-----------
795,789
-----------
Insurance (1.9%)
200,000 St. Paul Companies, Inc., 6.50%, 07/13/00.............. 199,567
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- -----------
<C> <S> <C>
<CAPTION>
Commercial Paper, continued
<C> <S> <C>
Manufacturing (6.0%)
$400,000 Michelin National, Inc., 6.44%, 07/14/00.............. $ 399,070
250,000 Snap-on, Inc., 6.70%, 07/07/00........................ 249,721
-----------
648,791
-----------
Media (6.4%)
400,000 McGraw-Hill Cos., Inc., 6.57%, 09/21/00............... 394,014
300,000 Washington Post Co., 6.53%, 08/21/00.................. 297,225
-----------
691,239
-----------
Pharmaceuticals (7.4%)
400,000 Glaxo Wellcome plc, 6.54%, 07/07/00................... 399,564
400,000 Pfizer, Inc., 6.52%, 08/01/00......................... 397,754
-----------
797,318
-----------
Retail/Wholesale (6.3%)
275,000 Gap, Inc., 6.50%, 07/10/00............................ 274,553
400,000 NIKE, Inc., 6.55%, 07/05/00........................... 399,709
-----------
674,262
-----------
Telecommunications (3.0%)
325,000 Bellsouth Capital Funding Corp., 6.50%, 07/06/00...... 324,707
-----------
Total Commercial Paper 9,896,919
-----------
Corporate Bonds (7.4%)
Banking/Financial Services (7.4%)
400,000 General Electric Capital Corp., 6.02%, 05/04/01....... 396,534
400,000 International Lease Finance Corp., 6.96%, 05/03/01.... 399,731
-----------
Total Corporate Bonds 796,265
-----------
Money Market Mutual Funds (1.2%)
132,962 Valiant Sweep Account................................. 132,962
-----------
Total Money Market Mutual Funds 132,962
-----------
Total Investments
(Cost $10,826,146) (a)--100.5% 10,826,146
Liabilities in excess of other assets--(0.5)% (58,132)
-----------
Total Net Assets--100.0% $10,768,014
===========
</TABLE>
--------
(a) Also represents cost for federal tax purposes.
See accompanying notes to financial statements.
10
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Global Opportunities Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
------- ----------
<C> <S> <C>
Common Stocks (98.2%)
Canada (1.7%)
Telecommunications (1.7%)
2,400 Nortel Networks Corp...................................... $ 166,353
----------
Finland (2.7%)
Telecommunications (2.7%)
5,200 Nokia Oyj................................................. 266,430
----------
France (10.1%)
Banking/Financial Services (1.8%)
1,800 Banque Nationale de Paris................................. 173,927
----------
Building (0.4%)
500 Lafarge SA................................................ 39,015
----------
Electronics (1.8%)
2,800 STMicroelectronics NV..................................... 177,147
----------
Insurance (1.9%)
1,200 Axa....................................................... 189,801
----------
Oil/Gas (2.8%)
1,800 Total Fina Elf SA......................................... 277,108
----------
Services (1.4%)
300 Cap Gemini SA............................................. 53,058
1,000 Vivendi................................................... 88,622
----------
141,680
----------
998,678
----------
Germany (0.9%)
Computers (0.9%)
600 SAP AG.................................................... 90,012
----------
Hong Kong (1.0%)
Building (0.4%)
50,000 New World Infrastructure, Ltd.*........................... 44,259
----------
Real Estate Assets (0.6%)
5,000 Cheung Kong (Holdings), Ltd............................... 55,324
----------
99,583
----------
Japan (8.5%)
Banking/Financial Services (1.4%)
3,800 Nomura Securities Co., Ltd................................ 93,203
3,330 The Bank of Tokyo-Mitsubishi, Ltd......................... 40,318
----------
133,521
----------
Chemicals (1.4%)
2,800 Shin-Etsu Chemical Co..................................... 142,381
----------
Electronics (4.3%)
6,200 Minebea Co., Ltd.......................................... 77,938
1,240 Sony Corp................................................. 116,029
1,000 Tokyo Electron, Ltd....................................... 137,238
8,100 Toshiba Corp.............................................. 91,640
----------
422,845
----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
------- ----------
<C> <S> <C>
Common Stocks, continued
Telecommunications (1.4%)
5 NTT Mobile Communications, Inc............................ $ 135,631
----------
834,378
----------
Netherlands (3.3%)
Banking/Financial Services (1.9%)
2,700 Fortis (NL) NV............................................ 78,914
1,700 ING Groep NV.............................................. 115,376
----------
194,290
----------
Computers (0.2%)
500 Equant NV*................................................ 20,399
----------
Telecommunications (1.2%)
2,400 Koninklijke (Royal) Philips Electronics NV................ 113,650
----------
328,339
----------
Singapore (0.6%)
Media (0.6%)
4,000 Singapore Press Holdings.................................. 62,465
----------
South Korea (0.5%)
Electronics (0.5%)
250 Samsung Electronics....................................... 48,250
----------
Spain (1.3%)
Telecommunications (1.3%)
6,000 Telefonica SA*............................................ 129,410
----------
Switzerland (3.1%)
Food (2.1%)
100 Nestle SA................................................. 200,825
----------
Household (0.0%)
12 Givaudan*................................................. 3,664
----------
Pharmaceuticals (1.0%)
10 Roche Holding AG.......................................... 97,659
----------
302,148
----------
United Kingdom (10.8%)
Aerospace/Defense (0.8%)
12,000 British Aerospace plc..................................... 74,802
----------
Banking/Financial Services (2.0%)
21,000 Lloyds TSB Group plc...................................... 199,017
----------
Electric Utilities (0.7%)
8,000 Scottish Power plc........................................ 67,641
----------
Food (0.8%)
25,000 Tesco plc................................................. 77,682
----------
Insurance (1.2%)
10,000 Allied Zurich plc......................................... 118,009
----------
Manufacturing (0.8%)
21,000 Invensys plc.............................................. 78,765
----------
Pharmaceuticals (0.9%)
3,000 Glaxo Wellcome plc........................................ 87,519
----------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
------- ----------
<C> <S> <C>
Common Stocks, continued
Services (0.6%)
10,000 Hays plc.................................................. $ 55,371
----------
Telecommunications (3.0%)
5,000 British Telecom plc....................................... 64,644
58,964 Vodafone AirTouch plc..................................... 238,338
----------
302,982
----------
1,061,788
----------
United States (53.7%)
Aerospace/Defense (0.7%)
2,000 Honeywell International, Inc.............................. 67,375
----------
Banking/Financial Services (5.0%)
3,300 Citigroup, Inc............................................ 198,825
900 Merrill Lynch & Co........................................ 103,500
5,000 Wells Fargo Co............................................ 193,750
----------
496,075
----------
Beverages (0.8%)
1,800 PepsiCo, Inc.............................................. 79,988
----------
Biotechnology (1.4%)
2,000 Amgen, Inc.*.............................................. 140,500
----------
Computers (8.1%)
3,800 Cisco Systems, Inc.*...................................... 241,537
1,000 International Business Machines Corp...................... 109,563
2,000 Microsoft Corp.*.......................................... 160,000
2,500 Sun Microsystems, Inc.*................................... 227,344
500 Yahoo!, Inc.*............................................. 61,938
----------
800,382
----------
Electric Utilities (1.8%)
3,800 AES Corp.*................................................ 173,375
----------
Electrical Equipment (2.5%)
4,600 General Electric Co....................................... 243,799
----------
Electronics (6.4%)
1,400 Applied Materials, Inc.*.................................. 126,875
1,500 Intel Corp................................................ 200,531
1,800 Novellus Systems, Inc.*................................... 101,813
3,000 Texas Instruments, Inc.................................... 206,063
----------
635,282
----------
Health Care (1.3%)
2,500 Medtronic, Inc............................................ 124,531
----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
------- ----------
<C> <S> <C>
Common Stocks, continued
Media (1.4%)
1,500 Omnicom Group............................................ $ 133,594
----------
Oil/Gas (3.9%)
2,200 Exxon Mobil Corp......................................... 172,700
1,000 Halliburton Co........................................... 47,188
2,700 Royal Dutch Petroleum Co., ADR........................... 166,219
----------
386,107
----------
Pharmaceuticals (4.3%)
6,050 Pfizer, Inc.............................................. 290,399
2,600 Schering-Plough Corp..................................... 131,300
----------
421,699
----------
Retail/Wholesale (4.3%)
3,500 Costco Wholesale Corp.*.................................. 115,500
2,700 Home Depot, Inc.......................................... 134,831
1,900 McDonald's Corp.......................................... 62,581
2,000 Wal-Mart Stores, Inc..................................... 115,250
----------
428,162
----------
Services (1.9%)
3,500 Automatic Data Processing, Inc........................... 187,469
----------
Telecommunications (9.9%)
4,000 ADC Telecommunications, Inc.*............................ 335,499
1,800 AT&T Corp................................................ 56,925
1,900 Bell Atlantic Corp....................................... 96,544
6,600 Ericsson (LM), ADR....................................... 132,000
1,000 Nextel Communications, Inc., Class A*.................... 61,188
4,500 Sprint Corp.............................................. 229,499
2,000 Winstar Communications, Inc.*............................ 67,750
----------
979,405
----------
5,297,743
----------
Total Common Stocks 9,685,577
----------
Money Market Mutual Funds (1.9%)
187,069 Valiant Sweep Account 187,069
----------
Total Money Market Mutual Funds 187,069
----------
Total Investments
(Cost $10,104,820) (a)--100.1% 9,872,646
Liabilities in excess of other assets--(0.1)% (12,460)
----------
Total Net Assets--100.0% $9,860,186
==========
</TABLE>
--------
* Non-income producing security.
ADR--American Depository Receipt.
(a) Represents cost for federal tax purposes and differs from value by net
unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....... $ 636,978
Unrealized depreciation....... (869,152)
---------
Net unrealized depreciation... $(232,174)
=========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Statements of Assets and Liabilities
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Fixed Diversified Money Global
Growth Income Assets Market Opportunities
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost $11,812,768,
$11,951,544,
$12,570,705,
$10,826,146,
$10,104,820)........... $12,701,465 $11,828,968 $12,764,287 $10,826,146 $ 9,872,646
Cash.................... -- -- -- -- 237
Foreign currency, at
value (cost $0, $0, $0,
$0, $2,307)............ -- -- -- -- 2,306
Dividends and interest
receivable............. 8,337 156,371 90,835 10,127 4,056
Receivable for
investments sold....... 5,080 -- -- -- --
Receivable from
Investment Adviser..... 2,799 3,993 1,797 4,097 --
Reclaim receivable...... -- -- -- -- 3,673
----------- ----------- ----------- ----------- -----------
Total Assets.......... 12,717,681 11,989,332 12,856,919 10,840,370 9,882,918
----------- ----------- ----------- ----------- -----------
LIABILITIES
Income payable.......... 8,777 54,159 42,973 51,063 --
Securities purchased
payable................. -- 871,924 193,641 -- --
Investment Advisory fees
payable................. -- -- -- -- 2,158
Administration fees
payable................. 4,171 3,994 4,762 1,164 1,535
Distribution fees
payable................. 2,593 2,246 2,591 2,213 2,050
Custody fees payable.... 2,120 2,373 1,887 1,867 1,849
Other accrued
liabilities............. 33,240 31,829 32,528 16,049 15,140
----------- ----------- ----------- ----------- -----------
Total Liabilities..... 50,901 966,525 278,382 72,356 22,732
----------- ----------- ----------- ----------- -----------
NET ASSETS.............. $12,666,780 $11,022,807 $12,578,537 $10,768,014 $ 9,860,186
=========== =========== =========== =========== ===========
Shares of beneficial
interest outstanding
(unlimited shares
authorized)............ 1,137,646 1,125,801 1,223,416 10,768,098 1,004,603
Net Asset Value,
offering price and
redemption price per
share.................. $ 11.13 $ 9.79 $ 10.28 $ 1.00 $ 9.82
NET ASSETS CONSIST OF
Capital................. $11,481,498 $11,198,166 $12,273,682 $10,768,098 $10,047,178
Accumulated
undistributed net
investment income...... -- 63 59 -- 4,572
Accumulated net realized
gain/ (loss) on
investments and foreign
currency transactions.. 296,585 (52,846) 111,214 (84) 40,508
Net unrealized
appreciation/
(depreciation) on
investments and foreign
currency transactions.. 888,697 (122,576) 193,582 -- (232,072)
----------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS...... $12,666,780 $11,022,807 $12,578,537 $10,768,014 $ 9,860,186
=========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Statements of Operations
For the Period Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Fixed Diversified Money Global
Growth Income Assets Market Opportunities
Fund Fund Fund Fund (a) Fund (a)
-------- -------- ----------- -------- -------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends (Net of foreign
withholding tax of $0, $0,
$0, $0, $5,078)............ $ 55,108 $ 8,952 $ 23,964 $ 8,375 $ 43,247
Interest.................... 7,646 353,859 271,092 253,914 23,692
-------- -------- -------- -------- ---------
Total Investment Income... 62,754 362,811 295,056 262,289 66,939
-------- -------- -------- -------- ---------
Expenses:
Investment Advisory fees.... 44,981 26,607 32,417 14,791 39,237
Administration fees......... 32,283 32,135 32,898 25,890 26,262
Distribution fees........... 14,994 13,303 14,735 10,565 10,326
Custodian fees.............. 3,004 2,648 2,945 2,201 2,182
Fund Accounting fees........ 1,566 1,914 2,722 1,032 1,718
Legal fees.................. 7,318 6,553 7,396 5,252 5,044
Audit fees.................. 5,062 5,655 5,833 5,032 5,127
Offering fees............... 5,897 5,307 5,905 3,539 3,399
Other expenses.............. 10,115 7,327 8,455 7,393 7,197
-------- -------- -------- -------- ---------
Total expenses before
waivers/reimbursements... 125,220 101,449 113,306 75,695 100,492
Less expenses
waived/reimbursed........ (71,243) (61,539) (54,366) (37,661) (38,125)
-------- -------- -------- -------- ---------
Total Net Expenses........ 53,977 39,910 58,940 38,034 62,367
-------- -------- -------- -------- ---------
Net Investment Income....... 8,777 322,901 236,116 224,255 4,572
-------- -------- -------- -------- ---------
Net realized gain/(loss) on
investments and foreign
currency transactions...... 268,740 3,659 55,342 (84) 40,508
Net change in unrealized
appreciation/(depreciation)
on investments and foreign
currency transactions...... 54,151 78,764 16,686 -- (232,072)
-------- -------- -------- -------- ---------
Net realized and unrealized
gain/(loss) on investments
and foreign currency
transactions............... 322,891 82,423 72,028 (84) (191,564)
-------- -------- -------- -------- ---------
Net increase/(decrease) in
net assets resulting from
operations................. $331,668 $405,324 $308,144 $224,171 $(186,992)
======== ======== ======== ======== =========
</TABLE>
--------
(a) From commencement of operations on February 1, 2000 to June 30, 2000.
See accompanying notes to financial statements.
14
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Growth Fixed Income
Fund Fund
---------------------------------- ----------------------------------
Period Period
Ended Ended
June 30, Period Ended June 30, Period Ended
2000 December 31, 1999 (a) 2000 December 31, 1999 (a)
----------- --------------------- ----------- ---------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations:
Net investment income...... $ 8,777 $ 1,799 $ 322,901 $ 81,420
Net realized gain/(loss) on
investments............... 268,740 27,855 3,659 (56,505)
Net change in unrealized
appreciation/(depreciation)
on investments............ 54,151 834,546 78,764 (201,340)
----------- ----------- ----------- -----------
Net increase/(decrease) in
net assets resulting from
operations................ 331,668 864,200 405,324 (176,425)
----------- ----------- ----------- -----------
Distributions to
Shareholders From:
Net investment income...... (8,777) (1,809) (322,838) (82,494)
----------- ----------- ----------- -----------
Net decrease in net assets
resulting from
distributions............ (8,777) (1,809) (322,838) (82,494)
----------- ----------- ----------- -----------
Shares of Beneficial
Interest:
Proceeds from shares
issued.................... 1,792,919 10,442,601 8,930,155 10,186,882
Proceeds from dividends
reinvested................ 1,758 -- 348,401 2,674
Cost of shares redeemed.... (664,350) (91,430) (8,246,432) (22,440)
----------- ----------- ----------- -----------
Net increase in net assets
from shares of beneficial
interest................. 1,130,327 10,351,171 1,032,124 10,167,116
----------- ----------- ----------- -----------
Total increase in net
assets..................... 1,453,218 11,213,562 1,114,610 9,908,197
Net Assets:
Beginning of period........ 11,213,562 -- 9,908,197 --
----------- ----------- ----------- -----------
End of period.............. $12,666,780 $11,213,562 $11,022,807 $ 9,908,197
=========== =========== =========== ===========
</TABLE>
--------
(a) From commencement of operations on November 9, 1999 to December 31, 1999.
See accompanying notes to financial statements.
15
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Diversified Money Global
Assets Market Opportunities
Fund Fund Fund
---------------------------------- ----------------- -----------------
Period
Ended
June 30, Period Ended Period Ended Period Ended
2000 December 31, 1999 (a) June 30, 2000 (b) June 30, 2000 (b)
----------- --------------------- ----------------- -----------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations:
Net investment income...... $ 236,116 $ 51,943 $ 224,255 $ 4,572
Net realized gain/(loss) on
investments and foreign
currency transactions..... 55,342 56,166 (84) 40,508
Net change in unrealized
appreciation/(depreciation)
on investments and foreign
currency transactions..... 16,686 176,896 -- (232,072)
----------- ----------- ----------- ----------
Net increase/(decrease) in
net assets resulting from
operations................ 308,144 285,005 224,171 (186,992)
----------- ----------- ----------- ----------
Distributions to
Shareholders From:
Net investment income...... (236,057) (52,237) (224,255) --
----------- ----------- ----------- ----------
Net decrease in net assets
resulting from
distributions............ (236,057) (52,237) (224,255) --
----------- ----------- ----------- ----------
Shares of Beneficial
Interest:
Proceeds from shares
issued.................... 2,082,603 10,137,993 12,198,438 10,047,178
Proceeds from dividends
reinvested................ 245,239 -- 173,224 --
Cost of shares redeemed.... (192,153) -- (1,603,564) --
----------- ----------- ----------- ----------
Net increase in net assets
from shares of beneficial
interest................. 2,135,689 10,137,993 10,768,098 10,047,178
----------- ----------- ----------- ----------
Total increase in net
assets..................... 2,207,776 10,370,761 10,768,014 9,860,186
Net Assets:
Beginning of period........ 10,370,761 -- -- --
----------- ----------- ----------- ----------
End of period.............. $12,578,537 $10,370,761 $10,768,014 $9,860,186
=========== =========== =========== ==========
</TABLE>
--------
(a) From commencement of operations on November 9, 1999 to December 31, 1999.
(b) From commencement of operations on February 1, 2000 to June 30, 2000.
See accompanying notes to financial statements.
16
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Notes to Financial Statements
June 30, 2000 (Unaudited)
1.Organization
The USAllianz Variable Insurance Products Trust (the "Trust") was organized
as a Delaware business trust on July 13, 1999. The Trust is a diversified
open-end management investment company registered under the Investment
Company Act of 1940, as amended, (the "1940 Act"). The Trust consists of
five series, the Growth Fund, the Fixed Income Fund, the Diversified Assets
Fund, the Money Market Fund and the Global Opportunities Fund (collectively,
the "Funds" and individually, a "Fund"). The Money Market Fund and the
Global Opportunities Fund became active on February 1, 2000. The Trust is
authorized to issue an unlimited number of shares. Shares of the Funds are
offered through the variable annuity contracts and variable life insurance
policies offered through the separate accounts of participating insurance
companies.
2.Significant Accounting Policies
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual amounts 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.
Security Valuation
Portfolio securities listed on a national exchange or exchanges for which
market quotations are available are valued at their last quoted sale price
on each business day. If there is no such reported sale, the most recently
quoted bid price is used for long securities and the ask price is used for
securities sold short. Debt obligations with sixty days or less remaining
until maturity are valued at their amortized cost. Unlisted securities for
which market quotations are readily available are valued at the most recent
quoted bid price for long securities and the ask price is used for
securities sold short. Other assets and securities for which no quotation is
readily available are valued at fair value as determined in good faith by
the Trustees or persons acting on the behalf of the Trustees. These persons
may use available market quotations, employ electronic data processing
techniques and/or a matrix system to determine valuations.
Security Transactions and Related Investment Income
Security transactions are accounted for on the trade date, with realized
gain or loss on the sale of investments determined by using the identified
cost method. Corporate actions (including cash dividends) are recorded on
the ex-date or after the ex-date as the Fund becomes aware of such action,
net of any non-refundable tax withholdings. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Distributions are made on a tax basis which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for redemptions-in-kind and wash sales for book and tax
purposes. Permanent book and tax basis differences will result in
reclassifications to capital accounts.
Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent they
exceed net investment income and net realized gains for tax purposes, they
are reported as distributions of capital.
3.Management, Administration, Fund Accounting Agreements
Allianz of America, Inc., (the "Investment Adviser") provides advisory and
management services to the Funds under separate management contracts. The
Investment Adviser is entitled to a fee, computed daily and paid monthly, at
the annual rate of 0.75% for the Growth Fund, 0.50% for the Fixed Income
Fund, 0.55% for the Diversified Assets Fund, 0.35% for the Money Market Fund
and 0.95% for the Global Opportunities Fund of each Fund's average net
assets. The Investment Adviser has voluntarily agreed to waive fees and
reimburse the Funds to limit the annual expenses to 0.90% for the Growth
Fund, 0.75% for the Fixed Income Fund, 1.00% for the Diversified Assets
Fund, 0.90% for the Money Market Fund and 1.51% for the Global Opportunities
Fund of each Fund's average net assets. For the period ended June 30, 2000,
the amount of such waivers totaled $44,981, $26,607, $32,417, $14,791 and
$38,125 for the Growth Fund, the Fixed Income Fund, the
17
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Notes to Financial Statements, Continued
June 30, 2000 (Unaudited)
Diversified Assets Fund, the Money Market Fund and the Global Opportunities
Fund, respectively. For the period ended June 30, 2000, the amount of such
reimbursements totaled $26,262, $34,932, $21,949, $22,870 and $0 for the
Growth Fund, the Fixed Income Fund, the Diversified Assets Fund, the Money
Market Fund and the Global Opportunities Fund, respectively.
BISYS Fund Services Ohio, Inc. ("BISYS" or the "Administrator"), a wholly-
owned subsidiary of The BISYS Group, Inc., serves as the Trust's
administrator, transfer agent, fund accountant and assists the Trust in all
aspects of its administration and operation. The Administrator is entitled
to a fee, computed daily and paid monthly, and is reimbursed for certain
out-of-pocket expenses incurred. The amount of such payments totaled
$32,283, $32,135, $32,898, $25,890 and $26,262 for the Growth Fund, the
Fixed Income Fund, the Diversified Assets Fund, the Money Market Fund and
the Global Opportunities Fund, respectively.
The Trust has adopted a distribution and service plan in conformance with
Rule 12b-1. Pursuant to this plan, each Fund is authorized to pay certain
fees for the sale and distribution of its shares and services provided to
its shareholders at an annual rate not to exceed 0.25% of the Fund's average
daily net assets. The amount of such payments totaled $14,994, $13,303,
$14,735, $10,565 and $10,326 for the Growth Fund, the Fixed Income Fund, the
Diversified Assets Fund, the Money Market Fund and the Global Opportunities
Fund, respectively.
4.Federal Income Taxes
It is each Fund's policy to comply with the requirements of the Internal
Revenue Code under Subchapter M, applicable to regulated investment
companies, and to distribute all of its taxable income, including any net
realized gain on investments, to its shareholders. Therefore, no provision
is made for federal income taxes.
5.Security Purchases and Sales
For the period ended June 30, 2000, purchases and sales of securities
(excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- ----------
<S> <C> <C>
Growth Fund........................................... $ 3,772,419 $3,145,047
Fixed Income Fund..................................... 8,386,413 6,548,986
Diversified Assets Fund............................... 6,272,715 4,294,848
Global Opportunities Fund............................. 14,361,319 4,494,696
</TABLE>
6.Trustee Fees
The unaffiliated Trustees of the Trust each receive a $2,000 meeting fee for
each meeting of the Trustees of the Trust attended and receive reimbursement
of out-of-pocket expenses incurred in connection with attendance at such
meetings.
18
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Notes to Financial Statements, Continued
June 30, 2000 (Unaudited)
7.Sales and Redemptions of Shares
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Period Ended June 30, 2000 (Unaudited)
--------------------------------------------------------
Fixed Diversified Money Global
Growth Income Assets Market Opportunities
Fund Fund Fund Fund (a) Fund (a)
------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Shares Sold............. 165,126 915,846 204,529 12,198,438 1,004,603
Issued upon reinvestment
of distributions....... 162 35,749 23,858 173,224 --
Shares redeemed......... (61,469) (842,616) (18,655) (1,603,564) --
------- -------- ------- ---------- ---------
Net increase............ 103,819 108,979 209,732 10,768,098 1,004,603
</TABLE>
--------
(a) From commencement of operations on February 1, 2000 to June 30, 2000.
<TABLE>
<CAPTION>
Period Ended
December 31, 1999 (b)
---------------------------------
Fixed Diversified
Growth Income Assets
Fund Fund Fund
--------- --------- -----------
<S> <C> <C> <C>
Shares Sold................................. 1,042,783 1,018,811 1,013,684
Issued upon reinvestment of distributions... -- 268 --
Shares redeemed............................. (8,956) (2,257) --
--------- --------- ---------
Net increase................................ 1,033,827 1,016,822 1,013,684
</TABLE>
--------
(b) From commencement of operations on November 9, 1999 to December 31,
1999.
19
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Growth Fund
-------------------------------------
Period Ended Period Ended
June 30, 2000 December 31, 1999 (a)
------------- ---------------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period..... $ 10.85 $ 10.00
------- -------
Income from Investment Operations:
Net investment income................... 0.01 --
Net realized and unrealized gain on
investments............................ 0.28 0.85
------- -------
Total from Investment Operations....... 0.29 0.85
------- -------
Distributions to shareholders from:
Net investment income................... (0.01) -- *
------- -------
Total Distributions to Shareholders.... (0.01) --
------- -------
Net Asset Value, End of Period........... $ 11.13 $ 10.85
======= =======
Total Return............................. 2.65%** 8.52%**
Ratios to Average Net Assets/Supplemental
Data:
Net Assets, end of period (000).......... $12,667 $11,214
Net investment loss before
waivers/reimbursements.................. (1.04%)*** (2.89%)***
Net investment income net of
waivers/reimbursements.................. 0.15%*** 0.12%***
Expenses before waivers/reimbursements... 2.09%*** 3.90%***
Expenses net of waivers/reimbursements... 0.90%*** 0.90%***
Portfolio turnover rate.................. 29.26% 5.27%
</TABLE>
--------
(a)From commencement of operations on November 9, 1999 to December 31, 1999.
*Distributions from net investment income were less than one cent per share.
**Total return for periods less than one year is not annualized.
***Annualized.
See accompanying notes to financial statements.
20
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Fixed Income Fund
-----------------------------------
Period Ended Period Ended
June 30, 2000 December 31, 1999 (a)
------------- ---------------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period....... $ 9.74 $10.00
------- ------
Income from Investment Operations:
Net investment income..................... 0.30 0.08
Net realized and unrealized gain/(loss) on
investments.............................. 0.05 (0.26)
------- ------
Total from Investment Operations......... 0.35 (0.18)
------- ------
Distributions to shareholders from:
Net investment income..................... (0.30) (0.08)
------- ------
Total Distributions to Shareholders...... (0.30) (0.08)
------- ------
Net Asset Value, End of Period............. $ 9.79 $ 9.74
======= ======
Total Return............................... 3.60%* (1.79%)*
Ratios to Average Net Assets/Supplemental
Data:
Net Assets, end of period (000)............ $11,023 $9,908
Net investment income before
waivers/reimbursements.................... 4.91%** 2.69%**
Net investment income net of
waivers/reimbursements.................... 6.07%** 5.71%**
Expenses before waivers/reimbursements..... 1.91%** 3.77%**
Expenses net of waivers/reimbursements..... 0.75%** 0.75%**
Portfolio turnover rate.................... 69.04% 55.81%
</TABLE>
--------
(a) From commencement of operations on November 9, 1999 to December 31, 1999.
* Total return for periods less than one year is not annualized.
** Annualized.
See accompanying notes to financial statements.
21
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Diversified Assets Fund
-----------------------------------
Period Ended Period Ended
June 30, 2000 December 31, 1999 (a)
------------- ---------------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period....... $ 10.23 $ 10.00
------- -------
Income from Investment Operations:
Net investment income..................... 0.20 0.05
Net realized and unrealized gain on
investments.............................. 0.05 0.23
------- -------
Total from Investment Operations......... 0.25 0.28
------- -------
Distributions to shareholders from:
Net investment income..................... (0.20) (0.05)
------- -------
Total Distributions to Shareholders...... (0.20) (0.05)
------- -------
Net Asset Value, End of Period............. $ 10.28 $ 10.23
======= =======
Total Return............................... 2.42%* 2.81%*
Ratios to Average Net Assets/Supplemental
Data:
Net Assets, end of period (000)............ $12,579 $10,371
Net investment income before
waivers/reimbursements.................... 3.08%** 0.75%**
Net investment income net of
waivers/reimbursements.................... 4.01%** 3.56%**
Expenses before waivers/reimbursements..... 1.92%** 3.80%**
Expenses net of waivers/reimbursements..... 1.00%** 1.00%**
Portfolio turnover rate.................... 45.52% 52.17%
</TABLE>
--------
(a) From commencement of operations on November 9, 1999 to December 31, 1999.
* Total return for periods less than one year is not annualized.
** Annualized.
See accompanying notes to financial statements.
22
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Money Market
Fund
-----------------
Period Ended
June 30, 2000 (a)
-----------------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period.......................... $ 1.000
-------
Income from Investment Operations:
Net investment income........................................ 0.022
-------
Total from Investment Operations............................ 0.022
-------
Distributions to shareholders from:
Net investment income........................................ (0.022)
-------
Total Distributions to Shareholders......................... (0.022)
-------
Net Asset Value, End of Period................................ $ 1.000
=======
Total Return.................................................. 2.21%*
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000)............................... $10,768
Net investment income before waivers/reimbursements........... 4.41%**
Net investment income net of waivers/reimbursements........... 5.31%**
Expenses before waivers/reimbursements........................ 1.79%**
Expenses net of waivers/reimbursements........................ 0.90%**
</TABLE>
--------
(a)From commencement of operations on February 1, 2000 to June 30, 2000.
*Total return for periods less than one year is not annualized.
**Annualized.
See accompanying notes to financial statements.
23
<PAGE>
USALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Global
Opportunities
Fund
-----------------
Period Ended
June 30, 2000 (a)
-----------------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period......................... $10.00
------
Income from Investment Operations:
Net realized and unrealized loss on investments and foreign
currency transactions...................................... (0.18)
------
Total from Investment Operations........................... (0.18)
------
Net Asset Value, End of Period............................... $ 9.82
======
Total Return................................................. (1.80%)*
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000).............................. $9,860
Net investment loss before waivers/reimbursements............ (0.81%)**
Net investment income net of waivers/reimbursements.......... 0.11%**
Expenses before waivers/reimbursements....................... 2.43%**
Expenses net of waivers/reimbursements....................... 1.51%**
Portfolio turnover rate...................................... 45.16%
</TABLE>
--------
(a) From commencement of operations on February 1, 2000 to June 30, 2000.
* Total return for periods less than one year is not annualized.
** Annualized.
See accompanying notes to financial statements.
24
<PAGE>
[LOGO OF USALLIANZ FUNDS]
The USAllianz VIP Funds are distributed by BISYS Fund Services. These funds are
not FDIC insured.
SMANNRPT600 8/00
