<PAGE> 1
SEMI-ANNUAL
- ----------------------------------------------------------------------
SEPARATE ACCOUNT A
- ----------------------------------------------------------------------
REPORT
TO CONTRACT OWNERS
JUNE 30, 1995
<PAGE> 2
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CHAIRMAN'S LETTER SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
TO OUR PARTICIPANTS:
We are pleased to present the June 30, 1995, Semi-Annual Report to Contract
Owners for Separate Account A of The Variable Annuity Life Insurance Company. A
summary of the change in unit value for each fund and each product series
(Portfolio Director, Independence Plus, Group Unit Purchase, and Impact)
appears on page two.
During the first six months of 1995 securities markets provided investors with
excellent returns. The stock market, as measured by the Standard & Poor's(R)
500 Index, had a total return of 20.2%. The mid-sized and smaller companies had
satisfactory but somewhat lower returns with the Standard & Poor's(R) MidCap
400 Index earning 17.6% and the Russell 2000(R) Index producing 14.4%. The bond
market, as measured by the Merrill Lynch Corporate & Government Master Index,
had a total return of 11.7%.
Stock market investors were encouraged by the Federal Reserve's conservative
monetary policy. The Federal Reserve has incrementally increased the Federal
Funds rate from 3% in January 1994 to 6% in June 1995. This tightening of short
term interest rates has been viewed by investors as allowing modest economic
growth to continue without risking a recession. In this scenario corporate
profit growth should justify higher equity prices.
Bond market investors also experienced rising prices. Lower long term interest
rates were expected to result from the modest economic growth.
International equity markets provided lower returns as economic trends were not
as favorable as those of the United States. The MSCI Europe, Australia, and Far
East Index (EAFE) returned 2.6% for the six months. However, international bond
markets were quite positive with the Salomon Brothers World Government Bond
Index returning 16.7%.
Lipper Analytical Services, Inc. and Morningstar, Inc. assign variable annuity
fund options to categories reflecting investment objectives and rank each of
the funds performance in its respective category. For the first half of 1995
Lipper ranked twelve of VALIC's funds in the top half of funds in each category
while Morningstar ranked nine of VALIC's in the top half of their categories.
Both ranking services had six of VALIC's funds in the top quartile of their
categories.
If you have any questions about your contract or this report, we would be happy
to hear from you.
Respectfully,
/s/ STEPHEN D. BICKEL
Stephen D. Bickel, Chairman and CEO
The Variable Annuity Life Insurance Company
August 16, 1995
NOTE: This report is published exclusively for the information of the variable
annuity contract owners of the Company in accordance with section 30 (d)
of the Investment Company Act of 1940. This report is authorized for
distribution to other persons only when preceded or accompanied by an
effective prospectus which gives the sales expense and other pertinent
information.
"Standard & Poor's(R) 500 Index" and "Standard & Poor's(R) MidCap 400
Index" are trademarks of Standard & Poor's Corporation. The Stock Index
Fund and MidCap Index Fund are not sponsored, endorsed, sold or promoted
by S&P and S&P makes no representation regarding the advisability of
investing in the funds. The Russell 2000(R) Index is a trademark /
service mark of the Frank Russell Company. Russell(TM) is a trademark of
the Frank Russell Company.
1
<PAGE> 3
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CHAIRMAN'S LETTER - CONTINUED SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTH ONE YEAR TOTAL
TOTAL RETURN RETURNS FOR THE
UNIT VALUE RETURNS PORTFOLIO INDEPENDENCE GROUP UNIT FOR THE PERIOD YEAR ENDING DECEMBER 31,
(Unaudited) DIRECTOR PLUS IMPACT PURCHASE ENDING ------------------------
DIVISION DIVISION DIVISION DIVISION JUNE 30, 1995 1994 1993
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INDEXED FUNDS
Stock Index Fund . . . . . . . . 10C 10C 10D 10A, 10B 19.50% (0.30)% 8.78%
MidCap Index Fund . . . . . . . . 4 4 4 N/A 17.00 (4.70) 11.78
Small Cap Index Fund . . . . . . . 14 14 N/A N/A 13.83 (4.30) 14.77
International Equities Fund . . . 11 11 N/A N/A 2.35 6.90 28.58
MANAGED FUNDS
Growth Fund . . . . . . . . . . . 15 N/A N/A N/A 22.19 0.18 (1) N/A
Growth & Income Fund . . . . . . . 16 N/A N/A N/A 15.52 (0.68)(1) N/A
Science & Technology Fund . . . . 17 N/A N/A N/A 34.69 24.77 (1) N/A
Social Awareness Fund . . . . . . 12 12 N/A N/A 20.61 (2.42) 6.84
Timed Opportunity Fund . . . . . . 5 5 5 N/A 12.30 (2.29) 8.19
Capital Conservation Fund . . . . 7 7 1 N/A 12.19 (7.04) 10.88
Government Securities Fund . . . . 8 8 N/A N/A 10.13 (5.44) 9.70
International Government
Bond Fund . . . . . . . . . . . 13 13 N/A N/A 18.81 3.42 13.08
Money Market Fund . . . . . . . . 6 6 2 N/A 2.27 2.77 1.67
Dreyfus Small Cap Fund . . . . . . 18 N/A N/A N/A 14.16 6.33 N/A
Templeton Asset Allocation Fund . 19 N/A N/A N/A 11.25 (4.24) N/A
Templeton International Fund . . . 20 N/A N/A N/A 7.38 (3.49) N/A
</TABLE>
(1) Since April 29, 1994, inception of the Fund.
<TABLE>
<CAPTION>
VARIABLE ACCOUNT PERFORMANCE LIPPER ANALYTICAL
FOR THE SIX MONTHS ENDED JUNE 30, 1995 SERVICES, INC. MORNINGSTAR, INC.
------------------------------ ----------------------------
UNIT RANKING RANKING
VALUE -------------------- AVERAGE -------------------- AVERAGE
RETURN POSITION PERCENTILE RETURN POSITION PERCENTILE RETURN
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stock Index Fund . . . . . . . . . . . . 19.50% 6/45 87% 19.22% 15/242 94% 16.63%
MidCap Index Fund . . . . . . . . . . . . 17.00 16/31 48 17.06 219/368 40 18.27
Small Cap Index Fund . . . . . . . . . . 13.83 25/48 48 15.35 88/131 33 16.19
International Equities Fund . . . . . . . 2.35 100/130 23 3.45 158/215 27 3.65
Growth Fund . . . . . . . . . . . . . . . 22.19 23/212 89 17.10 95/368 74 18.27
Growth & Income Fund . . . . . . . . . . 15.52 63/130 52 16.14 166/242 31 16.63
Science & Technology Fund . . . . . . . . 34.69 1/16 100 18.13 2/54 96 9.65
Social Awareness Fund . . . . . . . . . . 20.61 7/16 56 18.13 3/242 99 9.65
Timed Opportunity Fund . . . . . . . . . 12.30 95/175 46 11.50 151/292 48 12.36
Capital Conservation Fund . . . . . . . . 12.19 8/82 90 10.89 29/215 87 10.19
Government Securities Fund . . . . . . . 10.13 28/57 51 9.90 41/102 60 9.77
International Government Bond Fund . . . 18.81 1/44 100 8.41 1/58 100 8.69
Money Market Fund . . . . . . . . . . . . 2.27 59/219 73 2.19 57/198 71 2.19
Dreyfus Small Cap Fund . . . . . . . . . 14.16 21/48 56 15.35 82/131 37 16.19
Templeton Asset Allocation Fund . . . . . 11.25 5/14 64 9.91 197/292 33 12.36
Templeton International Fund . . . . . . 7.38 13/130 90 3.45 35/215 84 3.65
</TABLE>
SOURCES: Morningstar Variable Annuity/Life Performance Report, July 1995
Lipper Variable Insurance Products Performance Analysis Service,
June 1995
The Portfolio Director rankings shown in this publication indicate the total
return rankings of Separate Account A's divisions compared to Morningstar and
Lipper categories for the six month period ending 06/30/95. The total returns
and rankings displayed show value after all management, administration fees and
fund expenses and do not include potential sales charges or maintenance fees,
if applicable. For total return information over a longer period, see the
Portfolio Director prospectus. The performance shown represents past
performance. The principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Past performance does not guarantee future returns.
2
<PAGE> 4
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FINANCIAL STATEMENTS (Unaudited) SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
June 30, 1995
ASSETS: ALL DIVISIONS
---------------
<S> <C>
Total investment in shares of mutual funds, at market (cost $2,816,432,023) . . . . $ 3,261,296,685
Balance due from VALIC general account . . . . . . . . . . . . . . . . . . . . . . 3,462,836
---------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,264,759,521
===============
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts
(Net of applicable contract loans - partial withdrawals with right of reinvestment) $ 3,253,453,382
Reserves for annuity contracts on benefit . . . . . . . . . . . . . . . . . . . . . 11,306,139
---------------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,264,759,521
===============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
INVESTMENT INCOME: ALL DIVISIONS
---------------
<S> <C>
Dividends from mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,497,714
---------------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,197,636
Expense risk charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,115,661
---------------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,313,297
---------------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,184,417
---------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . 25,211,612
Capital gains distributions from mutual funds . . . . . . . . . . . . . . . . . . . 350,470
Net unrealized appreciation of investments during the period . . . . . . . . . . . 388,858,762
---------------
Net realized and unrealized gain on investments . . . . . . . . . . . . . . . . 414,420,844
---------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . . . . . . . . . . . . . . . . . $ 432,605,261
===============
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS ALL DIVISIONS
--------------------------------
FOR THE FOR THE
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
OPERATIONS: JUNE 30, 1995 1994
-------------- ---------------
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,184,417 $ 32,581,603
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . 25,211,612 14,131,361
Capital gains distributions from mutual funds . . . . . . . . . . . . . . . . . . . 350,470 25,307,836
Net unrealized appreciation (depreciation) of investments during the period . . . . 388,858,762 (95,069,796)
-------------- ---------------
Increase (decrease) in net assets resulting from operations . . . . . . . . . . 432,605,261 (23,048,996)
-------------- ---------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364,370,855 581,037,348
Surrenders of accumulation units by terminations, withdrawals, and
maintenance fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,934,908) (96,084,797)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (719,776) (1,371,515)
Amounts transferred from VALIC general account . . . . . . . . . . . . . . . . . . 10,628,020 155,830,645
-------------- ---------------
Increase in net assets resulting from principal transactions . . . . . . . . . 325,344,191 639,411,681
-------------- ---------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . 757,949,452 616,362,685
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,506,810,069 1,890,447,384
-------------- ---------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,264,759,521 $ 2,506,810,069
============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 5
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FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS
June 30, 1995 STOCK INDEX FUND
-----------------------------------------------------------
ASSETS: DIVISION 10A DIVISION 10B DIVISION 10C DIVISION 10D
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Investment in shares of mutual funds, at market . . . . . . . . . $313,955,582 $25,970,211 $872,850,673 $39,855,819
Balance due (to) from VALIC general account . . . . . . . . . . . (772,923) 5,416 469,753 29,916
------------ ------------ ------------ -----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $313,182,659 $25,975,627 $873,320,426 $39,885,735
============ ============ ============ ===========
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with right of reinvestment) $303,951,187 $24,649,541 $873,049,773 $39,827,131
Reserves for annuity contracts on benefit . . . . . . . . . . . 9,231,472 1,326,086 270,653 58,604
------------ ------------ ------------ -----------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . $313,182,659 $25,975,627 $873,320,426 $39,885,735
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS SOCIAL TIMED
June 30, 1995 AWARENESS OPPORTUNITY CAPITAL CONSERVATION
FUND FUND -------------------------
ASSETS: DIVISION 12 DIVISION 5 DIVISION 1 DIVISION 7
----------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Investment in shares of mutual funds, at market . . . . . . . . $47,106,861 $178,242,711 $8,121,998 $46,306,744
Balance due (to) from VALIC general account . . . . . . . . . . 56,174 146,475 13,860 47,411
----------- ------------ ---------- -----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . $47,163,035 $178,389,186 $8,135,858 $46,354,155
============ ============ ========== ===========
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with right of reinvestment) $47,163,035 $178,318,796 $8,131,359 $46,354,155
Reserves for annuity contracts on benefit . . . . . . . . . . - 70,390 4,499 -
----------- ------------ ---------- -----------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . $47,163,035 $178,389,186 $8,135,858 $46,354,155
============ ============ ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 6
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SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MIDCAP SMALL CAP INTERNATIONAL
INDEX INDEX EQUITIES GROWTH
FUND FUND FUND FUND
ASSETS: DIVISION 4 DIVISION 14 DIVISION 11 DIVISION 15
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment in shares of mutual funds, at market . . . . . . . . . $426,671,163 $133,943,424 $198,633,269 $104,553,259
Balance due (to) from VALIC general account . . . . . . . . . . . 65,872 348,990 431,446 444,581
------------ ------------ ------------ ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $426,737,035 $134,292,414 $199,064,715 $104,997,840
============ ============ ============ ============
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with right of reinvestment) $426,657,151 $134,225,220 $198,942,414 $104,997,840
Reserves for annuity contracts on benefit . . . . . . . . . . . 79,884 67,194 122,301 -
------------ ------------ ---------- -----------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . $426,737,035 $134,292,414 $199,064,715 $104,997,840
============ ============ ============ ===========
<CAPTION>
GROWTH & SCIENCE &
INCOME TECHNOLOGY
FUND FUND
ASSETS: DIVISION 16 DIVISION 17
----------- ------------
<S> <C> <C>
Investment in shares of mutual funds, at market . . . . . . . . . $35,402,394 $194,936,873
Balance due (to) from VALIC general account . . . . . . . . . . . 157,662 637,720
----------- ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $35,560,056 $195,574,593
=========== ============
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with right of reinvestment) $35,560,056 $195,561,252
Reserves for annuity contracts on benefit . . . . . . . . . . . - 13,341
----------- ------------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . $35,560,056 $195,574,593
=========== ============
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT INTERNATIONAL
SECURITIES GOVERNMENT MONEY MARKET FUND
FUND BOND FUND -------------------------
ASSETS: DIVISION 8 DIVISION 13 DIVISION 2 DIVISION 6
----------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Investment in shares of mutual funds, at market . . . . . . . . . $54,432,762 $67,631,867 $6,992,892 $73,505,995
Balance due (to) from VALIC general account . . . . . . . . . . . 86,366 224,028 81,796 (262,490)
----------- ----------- ---------- -----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $54,519,128 $67,855,895 $7,074,688 $73,243,505
=========== =========== ========== ===========
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with right of reinvestment) $54,519,128 $67,855,895 $7,074,688 $73,224,881
Reserves for annuity contracts on benefit . . . . . . . . . . . - - - 18,624
----------- ----------- ---------- -----------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . $54,519,128 $67,855,895 $7,074,688 $73,243,505
=========== =========== ========== ===========
<CAPTION>
DREYFUS TEMPLETON TEMPLETON
SMALL CAP ASSET ALLOCATION INTERNATIONAL
FUND FUND FUND
ASSETS: DIVISION 18 DIVISION 19 DIVISION 20
------------ ----------- ------------
<S> <C> <C> <C>
Investment in shares of mutual funds, at market . . . . . . . . . $212,729,804 $64,379,186 $155,073,198
Balance due (to) from VALIC general account . . . . . . . . . . . 682,125 93,839 474,819
------------ ----------- ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $213,411,929 $64,473,025 $155,548,017
============ =========== ============
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with right of reinvestment) $213,400,708 $64,448,946 $155,540,226
Reserves for annuity contracts on benefit . . . . . . . . . . . 11,221 24,079 7,791
------------ ----------- ------------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . $213,411,929 $64,473,025 $155,548,017
============ ============ ============
</TABLE>
5
<PAGE> 7
================================================================================
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the six months ended June 30, 1995 STOCK INDEX FUND
-----------------------------------------------------------
INVESTMENT INCOME: DIVISION 10A DIVISION 10B DIVISION 10C DIVISION 10D
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Dividends from mutual funds . . . . . . . . . . . . $3,380,830 $287,432 $9,019,226 $437,716
---------- --------- ----------- ---------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 1,177,403 35,124 3,119,991 178,238
Expense risk charge . . . . . . . . . . . . . . . . 294,351 4,790 779,998 13,416
---------- --------- ----------- ---------
Total expenses . . . . . . . . . . . . . . . . . 1,471,754 39,914 3,899,989 191,654
---------- --------- ----------- ---------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . 1,909,076 247,518 5,119,237 246,062
---------- --------- ----------- ---------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . 1,531,133 292,385 8,222,400 411,588
Capital gains distributions from mutual funds . . . - - - -
Net unrealized appreciation (depreciation)
of investments during the period . . . . . . . . 49,475,086 4,091,695 126,650,181 6,231,832
---------- --------- ----------- ---------
Net realized and unrealized gain on investments . . 51,006,219 4,384,080 134,872,581 6,643,420
---------- --------- ----------- ---------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . 52,915,295 4,631,598 139,991,818 6,889,482
========== ========= =========== =========
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS SOCIAL TIMED
For the six months ended June 30, 1995 AWARENESS OPPORTUNITY CAPITAL CONSERVATION
FUND FUND -------------------------
INVESTMENT INCOME: DIVISION 12 DIVISION 5 DIVISION 1 DIVISION 7
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Dividends from mutual funds . . . . . . . . . . . . $447,598 $3,684,428 $279,269 $1,504,198
--------- ---------- -------- ----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 167,844 704,230 37,144 170,926
Expense risk charge . . . . . . . . . . . . . . . . 41,961 161,981 2,796 42,731
--------- ---------- -------- ----------
Total expenses . . . . . . . . . . . . . . . . . 209,805 866,211 39,940 213,657
--------- ---------- -------- ----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . 237,793 2,818,217 239,329 1,290,541
--------- ---------- -------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments . . . . . . 260,349 (1,038,693) 8,805 (104,380)
Capital gains distributions from mutual funds . . . - - - -
Net unrealized appreciation of investments
during the period . . . . . . . . . . . . . . . 7,393,595 18,476,589 674,915 3,733,772
--------- ---------- -------- ----------
Net realized and unrealized gain on investments . . 7,653,944 17,437,896 683,720 3,629,392
--------- ---------- -------- ----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . 7,891,737 20,256,113 923,049 4,919,933
========= ========== ======== =========
</TABLE>
6
<PAGE> 8
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS MIDCAP SMALL CAP INTERNATIONAL
For the six months ended June 30, 1995 INDEX INDEX EQUITIES GROWTH
FUND FUND FUND FUND
INVESTMENT INCOME: DIVISION 4 DIVISION 14 DIVISION 11 DIVISION 15
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Dividends from mutual funds . . . . . . . . . . . . $3,300,685 $853,640 $1,888,817 $126,680
---------- ---------- --------- ----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 1,569,117 493,846 778,128 262,451
Expense risk charge . . . . . . . . . . . . . . . . 376,471 123,461 194,532 65,613
---------- ---------- --------- ----------
Total expenses . . . . . . . . . . . . . . . . . 1,945,588 617,307 972,660 328,064
---------- ---------- --------- ----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . 1,355,097 236,333 916,157 (201,384)
---------- ---------- --------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . 5,492,308 1,057,056 7,428,719 8,587
Capital gains distributions from mutual funds . . . - - - -
Net unrealized appreciation (depreciation)
of investments during the period . . . . . . . . 55,009,042 15,003,881 (3,975,425) 14,393,103
---------- ---------- --------- ----------
Net realized and unrealized gain on investments . . 60,501,350 16,060,937 3,453,294 14,401,690
---------- ---------- --------- ----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . 61,856,447 16,297,270 4,369,451 14,200,306
========== ========== ========= ==========
<CAPTION>
STATEMENTS OF OPERATIONS GROWTH & SCIENCE &
For the six months ended June 30, 1995 INCOME TECHNOLOGY
FUND FUND
INVESTMENT INCOME: DIVISION 16 DIVISION 17
<S> <C> <C>
Dividends from mutual funds . . . . . . . . . . . . $102,003 $238,640
--------- ----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 95,112 453,653
Expense risk charge . . . . . . . . . . . . . . . . 23,778 113,413
--------- ----------
Total expenses . . . . . . . . . . . . . . . . . 118,890 567,066
--------- ----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . (16,887) (328,426)
--------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . 8,156 1,296,648
Capital gains distributions from mutual funds . . . - -
Net unrealized appreciation (depreciation)
of investments during the period . . . . . . . . 3,529,965 39,966,645
--------- ----------
Net realized and unrealized gain on investments . . 3,538,121 41,263,293
--------- ----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . 3,521,234 40,934,867
========= ==========
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS GOVERNMENT INTERNATIONAL
For the six months ended June 30, 1995 SECURITIES GOVERNMENT MONEY MARKET FUND
FUND BOND FUND -------------------------
INVESTMENT INCOME: DIVISION 8 DIVISION 13 DIVISION 2 DIVISION 6
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Dividends from mutual funds . . . . . . . . . . . . $1,586,308 $1,196,084 $195,206 $1,988,422
---------- ---------- -------- ----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 184,966 190,078 32,849 287,329
Expense risk charge . . . . . . . . . . . . . . . . 46,242 47,519 2,473 71,832
---------- ---------- -------- ----------
Total expenses . . . . . . . . . . . . . . . . . 231,208 237,597 35,322 359,161
---------- ---------- -------- ----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . 1,355,100 958,487 159,884 1,629,261
---------- ---------- -------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments . . . . . . (69,103) 393,938 - -
Capital gains distributions from mutual funds . . . - - - -
Net unrealized appreciation of investments
during the period . . . . . . . . . . . . . . . 3,209,662 6,265,736 - -
---------- ---------- -------- ----------
Net realized and unrealized gain on investments . . 3,140,559 6,659,674 - -
---------- ---------- -------- ----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . 4,495,659 7,618,161 159,884 1,629,261
========== ========== ======== ==========
<CAPTION>
STATEMENTS OF OPERATIONS DREYFUS TEMPLETON TEMPLETON
For the six months ended June 30, 1995 SMALL CAP ASSET ALLOCATION INTERNATIONAL
FUND FUND FUND
INVESTMENT INCOME: DIVISION 18 DIVISION 19 DIVISION 20
----------- ----------- -----------
<S> <C> <C> <C>
Dividends from mutual funds . . . . . . . . . . . . $ - $1,162,767 $ 817,765
----------- ---------- ----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 601,596 198,348 459,263
Expense risk charge . . . . . . . . . . . . . . . . 338,398 111,570 258,335
----------- ---------- ----------
Total expenses . . . . . . . . . . . . . . . . . 939,994 309,918 717,598
----------- ---------- ----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . (939,994) 852,849 100,167
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments . . . . . . 3,611 8,105 -
Capital gains distributions from mutual funds . . . - - 350,470
Net unrealized appreciation of investments
during the period . . . . . . . . . . . . . . . 23,820,119 5,001,227 9,907,142
----------- ---------- ----------
Net realized and unrealized gain on investments . . 23,823,730 5,009,332 10,257,612
----------- ---------- ----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . 22,883,736 5,862,181 10,357,779
=========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 9
================================================================================
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STOCK INDEX FUND
--------------------------------------------------------------
DIVISION 10A DIVISION 10B
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 1,909,076 $ 4,490,176 $ 247,518 $ 541,395
Net realized gain (loss) on investments . . . . . . . . . . . . 1,531,133 (266,345) 292,385 (16,715)
Capital gains distributions from mutual funds . . . . . . . . . 638,819 - 54,939
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 49,475,086 (5,896,939) 4,091,695 (495,564)
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 52,915,295 (1,034,289) 4,631,598 84,055
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 2,616,343 5,464,415 285,893 720,902
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (8,073,499) (20,019,026) (566,990) (1,706,119)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . (585,311) (1,114,443) (103,085) (205,698)
Amounts transferred (to) from VALIC general account . . . . . . (16,281,549) (6,986,742) (2,570,157) (256,628)
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . (22,324,016) (22,655,796) (2,954,339) (1,447,543)
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 30,591,279 (23,690,085) 1,677,259 (1,363,488)
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 282,591,380 306,281,465 24,298,368 25,661,856
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 313,182,659 $ 282,591,380 $ 25,975,627 $ 24,298,368
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 33,814,520 36,512,399 1,836,094 1,937,835
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 220,952 678,364 21,508 57,856
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (837,619) (2,487,947) (40,914) (138,745)
Transfers interdivision and (to) from VALIC general account . (1,866,310) (888,296) (182,935) (20,852)
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 31,331,543 33,814,520 1,633,753 1,836,094
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 9.701124 $ 8.116786 $ 15.087677 $ 12.582568
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 2.949823 $ 2.510493 $ 3.901280 $ 3.309445
============================== ===============================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 10
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK INDEX FUND
--------------------------------------------------------------
DIVISION 10C DIVISION 10D
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 5,119,237 $ 10,610,432 $ 246,062 $ 605,767
Net realized gain (loss) on investments . . . . . . . . . . . . 8,222,400 4,405,234 411,588 49,938
Capital gains distributions from mutual funds . . . . . . . . . - 1,624,189 - 84,388
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 126,650,181 (17,763,623) 6,231,832 (896,531)
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 139,991,818 (1,123,768) 6,889,482 (156,438)
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 74,911,239 173,237,158 718,718 1,678,616
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (14,059,469) (26,626,162) (1,203,193) (2,632,793)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . (13,729) (23,752) (2,283) (3,736)
Amounts transferred (to) from VALIC general account . . . . . . (47,254,520) (65,001,259) (3,884,304) (4,630,624)
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . . 13,583,521 81,585,985 (4,371,062) (5,588,537)
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 153,575,339 80,462,217 2,518,420 (5,744,975)
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 719,745,087 639,282,870 37,367,315 43,112,290
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,320,426 $ 719,745,087 $ 39,885,735 $ 37,367,315
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 416,234,288 369,550,060 12,207,684 14,043,516
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 40,640,844 99,449,095 200,046 551,269
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (7,205,449) (14,897,712) (340,939) (863,807)
Transfers interdivision and (to) from VALIC general account . . (25,936,455) (37,867,155) (1,163,206) (1,523,294)
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 423,733,228 416,234,288 10,903,585 12,207,684
============================== ===============================
June 30, 1995 Dec. 31, 1994 June 30, 1995 Dec. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 2.060376 $ 1.724134 $ 3.652664 $ 3.056808
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.588499 $ 1.352112 $ 2.310160 $ 1.966534
============================== ===============================
<CAPTION>
SMALL CAP
MIDCAP INDEX FUND INDEX FUND
------------------------------ -------------------------------
DIVISION 4 DIVISION 14
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 1,355,097 $ 2,515,091 $ 236,333 $ 341,917
Net realized gain (loss) on investments . . . . . . . . . . . . 5,492,308 2,119,902 1,057,056 1,086,972
Capital gains distributions from mutual funds . . . . . . . . . - 11,552,151 - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 55,009,042 (32,449,763) 15,003,881 (5,860,073)
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 61,856,447 (16,262,619) 16,297,270 (4,431,184)
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 48,043,172 124,009,106 22,589,466 60,678,232
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (6,839,647) (14,276,915) (1,880,114) (3,630,894)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . (7,887) (14,576) (409) -
Amounts transferred (to) from VALIC general account . . . . . . (46,631,139) (27,422,005) (25,999,620) (1,057,342)
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . (5,435,501) 82,295,610 (5,290,677) 55,989,996
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 56,420,946 66,032,991 11,006,593 51,558,812
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 370,316,089 304,283,098 123,285,821 71,727,009
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 426,737,035 $ 370,316,089 $ 134,292,414 $123,285,821
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 171,442,018 134,621,879 100,383,839 56,159,647
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 21,226,747 55,929,821 18,150,679 48,518,804
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (2,871,595) (6,365,496) (1,432,391) (2,868,199)
Transfers interdivision and (to) from VALIC general account . (20,435,280) (12,744,186) (20,636,532) (1,426,413)
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 169,361,890 171,442,018 96,465,595 100,383,839
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 2.519204 $ 2.153183 $ 1.391431 $ 1.222329
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.657541 $ 1.441063 $ 1.248103 $ 1.115264
============================== ===============================
</TABLE>
9
<PAGE> 11
================================================================================
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL EQUITIES
FUND GROWTH FUND
------------------------------ -------------------------------
DIVISION 11 DIVISION 15
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 916,157 $ 586,461 $ (201,384) $ (3,344)
Net realized gain on investments . . . . . . . . . . . . . . . 7,428,719 4,189,593 8,587 2
Capital gains distributions from mutual funds . . . . . . . . . - 1,224,134 - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . (3,975,425) 1,953,569 14,393,103 330,403
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 4,369,451 7,953,757 14,200,306 327,061
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 30,476,973 70,132,976 18,153,639 4,547,841
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (2,940,548) (6,159,144) (364,350) (39,858)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . (2,880) (2,449) - -
Amounts transferred (to) from VALIC general account . . . . . . (31,733,338) 11,350,355 40,098,223 28,074,978
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . (4,199,793) 75,321,738 57,887,512 32,582,961
------------------------------ -------------------------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . . . . 169,658 83,275,495 72,087,818 32,910,022
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 198,895,057 115,619,562 32,910,022 -
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 199,064,715 $ 198,895,057 $ 104,997,840 $ 32,910,022
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 187,749,916 117,215,227 32,633,370 -
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 29,307,725 65,406,765 16,555,264 4,373,529
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (2,570,182) (5,718,100) (323,001) (40,064)
Transfers - interdivision and (to) from VALIC general account . (30,157,268) 10,846,024 36,909,067 28,299,905
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 184,330,191 187,749,916 85,774,700 32,633,370
============================== ===============================
June 30, 1995 Dec. 31, 1994 June 30, 1995 Dec. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.079272 $ 1.054460 $ 1.224112 $ 1.001834
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 0.885950 $ 0.880460 $ 1.175765 $ 0.978806
============================== ===============================
</TABLE>
* For the period from July 11, 1994 to December 31, 1994.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 12
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME FUND SCIENCE & TECHNOLOGY FUND
------------------------------ -------------------------------
DIVISION 16 DIVISION 17
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ (16,887) $ 4,055 $ (328,426) $ (54,071)
Net realized gain on investments . . . . . . . . . . . . . . . 8,156 160 1,296,648 250,313
Capital gains distributions from mutual funds . . . . . . . . . - - - 549,747
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 3,529,965 85,633 39,966,645 2,692,873
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 3,521,234 89,848 40,934,867 3,438,862
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 6,292,302 1,630,675 30,315,857 6,652,744
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (128,729) (5,453) (655,437) (37,889)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - - - -
Amounts transferred (to) from VALIC general account . . . . . . 13,496,737 10,663,442 71,301,344 43,624,245
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . 19,660,310 12,288,664 100,961,764 50,239,100
------------------------------ -------------------------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . . . . 23,181,544 12,378,512 141,896,631 53,677,962
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 12,378,512 - 53,677,962 -
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,560,056 $ 12,378,512 $ 195,574,593 $ 53,677,962
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 12,386,602 - 42,726,137 -
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 5,905,276 1,583,044 21,677,651 5,315,122
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (118,537) (5,487) (445,943) (32,041)
Transfers - interdivision and (to) from VALIC general account . 12,821,649 10,809,045 52,410,604 37,443,056
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 30,994,990 12,386,602 116,368,449 42,726,137
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.147284 $ 0.993168 $ 1.680535 $ 1.247713
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.101972 $ 0.970339 $ 1.614163 $ 1.219034
============================== ===============================
<CAPTION>
SOCIAL AWARENESS FUND
------------------------------
DIVISION 12
------------------------------
FOR THE FOR THE
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994
------------------------------
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 237,793 $ 484,291
Net realized gain on investments . . . . . . . . . . . . . . . 260,349 632,326
Capital gains distributions from mutual funds . . . . . . . . . - 2,328,955
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 7,393,595 (4,358,741)
------------------------------
Increase (decrease) in net assets resulting from operations 7,891,737 (913,169)
------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 5,168,345 13,160,211
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (645,353) (1,413,415)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - -
Amounts transferred (to) from VALIC general account . . . . . . (4,074,783) (7,867,172)
------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . 448,209 3,879,624
------------------------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . . . . 8,339,946 2,966,455
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 38,823,089 35,856,634
------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,163,035 $ 38,823,089
==============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 29,015,764 26,230,566
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 3,607,726 9,604,919
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (434,893) (983,733)
Transfers - interdivision and (to) from VALIC general account . (2,872,043) (5,835,988)
------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 29,316,554 29,015,764
==============================
JUNE 30, 1995 DEC. 31, 1994
------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.608751 $ 1.333899
==============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.320587 $ 1.113787
==============================
</TABLE>
* For the period from July 11, 1994 to December 31, 1994.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 13
================================================================================
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TIMED OPPORTUNITY CAPITAL CONSERVATION
FUND FUND
------------------------------ -------------------------------
DIVISION 5 DIVISION 1
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 2,818,217 $ 4,810,838 $ 239,329 $ 517,106
Net realized gain (loss) on investments . . . . . . . . . . . . (1,038,693) 735,641 8,805 32,250
Capital gains distributions from mutual funds . . . . . . . . . - 6,863,526 - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 18,476,589 (16,833,221) 674,915 (1,254,436)
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 20,256,113 (4,423,216) 923,049 (705,080)
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 11,388,185 36,297,892 120,192 494,060
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (3,556,973) (8,285,289) (307,857) (1,098,891)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . (3,164) (4,816) (243) (478)
Amounts transferred (to) from VALIC general account . . . . . . (24,484,435) (36,353,014) (605,551) (1,152,049)
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . (16,656,387) (8,345,227) (793,459) (1,757,358)
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 3,599,726 (12,768,443) 129,590 (2,462,438)
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 174,789,460 187,557,903 8,006,268 10,468,706
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 178,389,186 $ 174,789,460 $ 8,135,858 $ 8,006,268
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 89,377,860 93,899,802 2,953,861 3,590,916
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 5,707,310 18,196,642 42,015 145,757
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (1,728,705) (4,118,862) (105,542) (362,666)
Transfers - interdivision and (to) from VALIC general account . (11,989,203) (18,599,722) (214,199) (420,146)
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 81,367,262 89,377,860 2,676,135 2,953,861
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 2.191530 $ 1.951533 $ 3.038471 $ 2.709029
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.462560 $ 1.324778 $ 1.760111 $ 1.596246
============================== ===============================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 14
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL CONSERVATION GOVERNMENT SECURITIES
FUND FUND
------------------------------ -------------------------------
DIVISION 7 DIVISION 8
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 1,290,541 $ 2,360,212 $ 1,355,100 $ 2,030,237
Net realized gain (loss) on investments . . . . . . . . . . . . (104,380) 350,094 (69,103) 316,682
Capital gains distributions from mutual funds . . . . . . . . . - - - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 3,733,772 (5,791,380) 3,209,662 (4,822,548)
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 4,919,933 (3,081,074) 4,495,659 (2,475,629)
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 5,255,411 14,414,782 6,566,864 13,894,906
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (903,691) (2,021,727) (684,344) (1,878,777)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - - - -
Amounts transferred (to) from VALIC general account . . . . . . (3,722,051) (8,653,752) 2,773,999 (11,636,951)
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . 629,669 3,739,303 8,656,519 379,178
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 5,549,602 658,229 13,152,178 (2,096,451)
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 40,804,553 40,146,324 41,366,950 43,463,401
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 46,354,155 $ 40,804,553 $ 54,519,128 $ 41,366,950
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 26,859,219 24,628,606 26,667,073 26,563,166
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 3,270,414 9,129,477 4,102,191 8,675,976
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (494,905) (1,241,827) (419,764) (1,181,704)
Transfers - interdivision and (to) from VALIC general account . (2,366,391) (5,657,037) 1,647,528 (7,390,365)
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 27,268,337 26,859,219 31,997,028 26,667,073
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.699926 $ 1.515278 $ 1.703881 $ 1.547150
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.230931 $ 1.116084 $ 1.233793 $ 1.139558
============================== ===============================
<CAPTION>
INTERNATIONAL GOVERNMENT
------------------------------
BOND FUND
------------------------------
DIVISION 13
------------------------------
FOR THE FOR THE
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994
------------------------------
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 958,487 $ 1,361,407
Net realized gain (loss) on investments . . . . . . . . . . . . 393,938 245,193
Capital gains distributions from mutual funds . . . . . . . . . - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 6,265,736 (642,360)
------------------------------
Increase (decrease) in net assets resulting from operations 7,618,161 964,240
------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 11,182,237 12,960,014
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (649,186) (981,285)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - -
Amounts transferred (to) from VALIC general account . . . . . . 16,143,593 (2,227,507)
------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . 26,676,644 9,751,222
------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 34,294,805 10,715,462
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 33,561,090 22,845,628
------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 67,855,895 $ 33,561,090
==============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 25,691,713 18,155,381
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 7,953,100 10,044,637
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (447,117) (763,521)
Transfers - interdivision and (to) from VALIC general account . 10,688,828 (1,744,784)
------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 43,886,524 25,691,713
------------------------------
June 30, 1995 Dec. 31, 1994
------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.546167 $ 1.301357
==============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.360156 $ 1.164474
==============================
</TABLE>
13
<PAGE> 15
================================================================================
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONEY MARKET FUND
--------------------------------------------------------------
DIVISION 2 DIVISION 6
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 159,884 $ 211,175 $ 1,629,261 $ 1,241,669
Net realized gain (loss) on investments . . . . . . . . . . . . - - - -
Capital gains distributions from mutual funds . . . . . . . . . - - - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . - - - -
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 159,884 211,175 1,629,261 1,241,669
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 210,673 221,092 12,394,454 13,855,791
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (251,158) (663,266) (3,224,578) (4,406,881)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - - (785) (1,567)
Amounts transferred (to) from VALIC general account . . . . . . (261,069) (978,344) (49,973,605) 66,014,809
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . (301,554) (1,420,518) (40,804,514) 75,462,152
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . (141,670) (1,209,343) (39,175,253) 76,703,821
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 7,216,358 8,425,701 112,418,758 35,714,937
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,074,688 $ 7,216,358 $ 73,243,505 $112,418,758
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 3,442,237 4,129,981 75,765,781 24,799,810
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 98,804 107,142 8,576,117 9,439,315
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (117,867) (314,181) (2,178,747) (3,026,130)
Transfers - interdivision and (to) from VALIC general account . (123,407) (480,705) (33,758,871) 44,552,786
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 3,299,767 3,442,237 48,404,280 75,765,781
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 2.143996 $ 2.096416 $ 1.512777 $ 1.479129
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.387126 $ 1.379656 $ 1.083439 $ 1.077548
============================== ===============================
</TABLE>
* For the period from July 11, 1994 to December 31, 1994.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 16
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TEMPLETON ASSET
DREYFUS SMALL CAP FUND ALLOCATION FUND
------------------------------ -------------------------------
DIVISION 18 DIVISION 19
------------------------------ -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994 1995 1994
------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ (939,994) $ 166,996 $ 852,849 $ (75,725)
Net realized gain (loss) on investments . . . . . . . . . . . . 3,611 - 8,105 -
Capital gains distributions from mutual funds . . . . . . . . . - 386,988 - -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 23,820,119 (102,019) 5,001,227 (729,094)
------------------------------ -------------------------------
Increase (decrease) in net assets resulting from operations 22,883,736 451,965 5,862,181 (804,819)
------------------------------ -------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 37,652,331 12,217,697 11,417,820 4,656,678
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (1,101,842) (111,066) (316,827) (47,985)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - - - -
Amounts transferred (to) from VALIC general account . . . . . . 64,574,096 76,845,012 14,656,578 29,049,399
------------------------------ -------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . 101,124,585 88,951,643 25,757,571 33,658,092
------------------------------ -------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 124,008,321 89,403,608 31,619,752 32,853,273
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 89,403,608 - 32,853,273 -
------------------------------ -------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,411,929 $ 89,403,608 $ 64,473,025 $ 32,853,273
============================== ===============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 85,169,871 - 32,807,602 -
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 34,855,987 11,303,726 11,137,399 4,421,687
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (986,046) (107,113) (290,513) (48,133)
Transfers - interdivision and (to) from VALIC general account . 60,159,310 73,973,258 14,517,628 28,434,048
------------------------------ -------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 179,199,122 85,169,871 58,172,116 32,807,602
============================== ===============================
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------------------------ -------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.190858 $ 1.043156 $ 1.107901 $ 0.995860
============================== ===============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.151822 $ 1.026303 $ 1.071585 $ 0.979771
============================== ===============================
<CAPTION>
TEMPLETON INTERNATIONAL FUND
------------------------------
DIVISION 20
------------------------------
FOR THE FOR THE
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
OPERATIONS: 1995 1994
------------------------------
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 100,167 $ (164,482)
Net realized gain (loss) on investments . . . . . . . . . . . . - 121
Capital gains distributions from mutual funds . . . . . . . . . 350,470 -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . . . . . . . 9,907,142 (2,235,982)
------------------------------
Increase (decrease) in net assets resulting from operations 10,357,779 (2,400,343)
------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 28,610,741 10,111,560
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . . . . . . . . (581,123) (41,962)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . - -
Amounts transferred (to) from VALIC general account . . . . . . 45,059,571 64,431,794
------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . . . . . . . . 73,089,189 74,501,392
------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . 83,446,968 72,101,049
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 72,101,049 -
------------------------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 155,548,017 $ 72,101,049
==============================
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of period . . . . . . . . . . . . 71,716,511 -
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . 28,662,622 9,484,235
Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . (563,970) (41,499)
Transfers - interdivision and (to) from VALIC general account . 45,135,544 62,273,775
------------------------------
Accumulation units end of period . . . . . . . . . . . . . . . 144,950,707 71,716,511
==============================
JUNE 30, 1995 DEC. 31, 1994
------------------------------
Accumulation unit value . . . . . . . . . . . . . . . . . . . . $ 1.073056 $ 0.999282
==============================
Annuity unit value assuming a 3.5% discount factor . . . . . . $ 1.037882 $ 0.983138
==============================
</TABLE>
* For the period from July 11, 1994 to December 31, 1994.
15
<PAGE> 17
================================================================================
NOTES TO FINANCIAL STATEMENTS (Unaudited) SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
NOTE A -- ORGANIZATION
Separate Account A (the "Separate Account"), established by The Variable
Annuity Life Insurance Company ("VALIC") on April 18, 1979, is registered under
the Investment Company Act of 1940 as a unit investment trust. The Separate
Account is comprised of twenty-one subaccounts or "divisions." Each division,
which represents a variable investment vehicle available only through a VALIC
annuity contract, invests in one of the following mutual funds:
AMERICAN GENERAL SERIES PORTFOLIO COMPANY ("AGSPC"):
Stock Index Fund (Divisions 10A, B, C, and D),
MidCap Index Fund (Division 4),
Small Cap Index Fund (Division 14),
International Equities Fund (Division 11),
Growth Fund (Division 15),
Growth & Income Fund (Division 16),
Science & Technology Fund (Division 17),
Social Awareness Fund (Division 12),
Timed Opportunity Fund (Division 5),
Capital Conservation Fund (Divisions 1 and 7),
Government Securities Fund (Division 8),
International Government Bond Fund (Division 13), and
Money Market Fund (Divisions 2 and 6).
DREYFUS VARIABLE INVESTMENT FUND:
Dreyfus Small Cap Portfolio (Division 18)
TEMPLETON VARIABLE PRODUCTS SERIES FUND:
Templeton Asset Allocation Fund (Division 19)
Templeton International Fund (Division 20)
Divisions 15, 16, 17, 18, 19, and 20 commenced operations on
July 11, 1994.
NOTE B -- SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The assets of the Separate Account are segregated from VALIC's other
assets. The operations of the Separate Account are part of VALIC. The following
is a summary of significant accounting policies consistently followed by the
Separate Account in the preparation of its financial statements.
INVESTMENT VALUATION. Investments in mutual funds (the "Funds") are valued
at the net asset (market) value per share at the close of each business day.
INVESTMENT TRANSACTIONS. Investment transactions are accounted for on the
trade date. Realized gains and losses on investments are determined on the
basis of identified cost. Capital gain distributions from mutual funds are
recorded on the ex-dividend date and reinvested upon receipt.
INVESTMENT INCOME. Dividend income from mutual funds is recorded on the
ex-dividend date and reinvested upon receipt.
ANNUITY RESERVES. Net payments made by variable annuity contract owners are
accumulated based on the performance of the investments of the Separate Account
until the date the contract owners select to commence annuity payments.
Reserves for annuities on which benefits are currently payable are provided for
based upon estimated mortality and other assumptions, including provisions for
the risk of adverse deviation from assumptions, which were appropriate at the
time the contracts were issued. The 1949 Progressive Annuity Table has been
used in the computation of annuity reserves for currently payable
contracts.Participants are able to elect investment rates between 3.0% and
6.0%, as regulated by the laws of the State of Texas.
NOTE C -- TRANSACTIONS WITH AFFILIATES
VALIC acts as investment adviser and transfer agent to AGSPC.
The Separate Account is charged for mortality and expense risks assumed by
VALIC. The charge, based on the daily net assets of each division, is assessed
daily based on the following annual rates: for Division 10B, .85% on the first
$10,000,000, .425% on the next $90,000,000, and .21% on the excess over
$100,000,000; for Divisions 1, 2, 4, 5, 6, 7, 8, 10A, 10C, 10D, 11, 12, 13, 14,
15, 16, and 17, 1.00%; and for Divisions 18, 19, and 20, 1.25%.
Pursuant to the reorganization agreement entered into on April 17, 1987,
which transferred VALIC Separate Accounts One and Two into the Separate
Account, expenses of Division 10A (formerly Separate Account One) are limited
to 1.4157% of average daily net assets, and expenses of Division 10B (formerly
Separate Account Two) are limited to the following rates based on average daily
net assets: 0.6966% on the first $25,434,267 and 0.5% on the next $74,565,733.
Accordingly, during the six months ended June 30, 1995, VALIC reduced expenses
of Division 10B by $34,996.
A portion of the annual contract maintenance charge is assessed each
contract (except those relating to Divisions 10A and 10B) by VALIC on the last
day of the calendar quarter in which VALIC receives the first purchase payment,
and in quarterly installments thereafter during the accumulation period.
Maintenance charges assessed totaled $772,627 for the six months ended June 30,
1995 and $1,857,628 for the year ended December 31, 1994.
VALIC received surrender charges of $592,619 for the six months ended June
30, 1995, and $1,233,026 for the year ended December 31, 1994. In addition,
VALIC received $56,015 and $9,188 for the six months ended June 30, 1995, in
sales load on variable annuity purchase payments for Divisions 10A and 10B,
respectively. VALIC received $124,462 and $22,329 for the year ended December
31, 1994, in sales load on variable annuity purchase payments for Divisions 10A
and 10B, respectively.
16
<PAGE> 18
================================================================================
NOTES TO FINANCIAL STATEMENTS (Unaudited) - CONTINUED SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
NOTE D -- INVESTMENTS
The cost of fund shares is the same for financial reporting and federal
income tax purposes. The following is a summary of fund shares owned as of June
30, 1995:
<TABLE>
<CAPTION>
UNREALIZED
MARKET APPRECIATION
UNDERLYING FUND DIVISION SHARES PRICE MARKET COST (DEPRECIATION)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Stock Index Fund . . . . . . . . . . 10A,B,C,D 72,954,705 $17.17 $ 1,252,632,285 $1,010,644,905 241,987,380
MidCap Index Fund . . . . . . . . . . 4 26,176,145 16.30 426,671,163 364,905,989 61,765,174
Small Cap Index Fund . . . . . . . . 14 10,224,689 13.10 133,943,424 120,821,140 13,122,284
International Equities Fund . . . . . 11 19,435,741 10.22 198,633,269 190,632,805 8,000,464
Growth Fund . . . . . . . . . . . . . 15 8,486,466 12.32 104,553,259 89,829,753 14,723,506
Growth & Income Fund . . . . . . . . 16 3,083,832 11.48 35,402,394 31,786,796 3,615,598
Science & Technology Fund . . . . . . 17 11,617,215 16.78 194,936,873 152,277,355 42,659,518
Social Awareness Fund . . . . . . . . 12 3,544,534 13.29 47,106,861 42,172,154 4,934,707
Timed Opportunity Fund . . . . . . . 5 15,676,580 11.37 178,242,711 164,434,865 13,807,846
Capital Conservation Fund . . . . . . 1 & 7 5,699,344 9.55 54,428,742 54,862,911 (434,169)
Government Securities Fund . . . . . 8 5,487,174 9.92 54,432,762 55,178,977 (746,215)
International Government Bond Fund . 13 5,296,153 12.77 67,631,867 61,864,691 5,767,176
Money Market Fund. . . . . . . . . . 2 & 6 80,498,887 1.00 80,498,887 80,498,887 -
Dreyfus Small Cap Fund . . . . . . . 18 5,071,032 41.95 212,729,804 189,011,704 23,718,100
Templeton Asset Allocation Fund . . . 19 3,762,664 17.11 64,379,186 60,107,053 4,272,133
Templeton International Fund . . . . 20 10,982,521 14.12 155,073,198 147,402,038 7,671,160
-----------------------------------------------
$ 3,261,296,685 $2,816,432,023 $444,864,662
===============================================
</TABLE>
NOTE E -- FEDERAL INCOME TAXES
VALIC is taxed as a life insurance company under the Internal Revenue Code
and includes the operations of the Separate Account in determining its federal
income tax liability. Under current federal income tax law the investment
income and capital gains from sale of investments realized by the Separate
Account are not taxable. Therefore, no federal income tax provision has been
made.
NOTE F -- SECURITY PURCHASES AND SALES
For the six months ended June 30, 1995, the aggregate cost of purchases and
proceeds from sales of investments were:
<TABLE>
<CAPTION>
PURCHASES SALES
------------------------------------
<S> <C> <C>
Stock Index Fund:
Division 10A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,402,402 $ 24,063,666
Division 10B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513,774 3,224,414
Division 10C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,382,220 41,039,359
Division 10D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 666,421 4,791,466
MidCap Index Fund Division 4 . . . . . . . . . . . . . . . . . . . . . . . 21,667,537 25,885,433
Small Cap Index Fund Division 14 . . . . . . . . . . . . . . . . . . . . . 9,252,499 14,499,015
International Equities Fund Division 11 . . . . . . . . . . . . . . . . . . 27,556,758 31,068,271
Growth Fund Division 15 . . . . . . . . . . . . . . . . . . . . . . . . . . 57,488,249 57,736
Growth & Income Fund Division 16 . . . . . . . . . . . . . . . . . . . . . 19,613,344 73,309
Science & Technology Fund Division 17 . . . . . . . . . . . . . . . . . . . 104,690,603 5,603,069
Social Awareness Fund Division 12 . . . . . . . . . . . . . . . . . . . . . 4,338,094 3,701,457
Timed Opportunity Fund Division 5 . . . . . . . . . . . . . . . . . . . . . 5,467,588 19,407,802
Capital Conservation Fund:
Division 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421,372 976,234
Division 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,353,304 7,483,601
Government Securities Fund Division 8 . . . . . . . . . . . . . . . . . . . 12,023,218 1,955,111
International Government Bond Fund Division 13 . . . . . . . . . . . . . . 32,589,032 5,128,070
Money Market Fund:
Division 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,461,501 1,707,794
Division 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,871,767 85,678,112
Dreyfus Small Cap Fund Division 18 . . . . . . . . . . . . . . . . . . . . 99,890,796 33,730
Templeton Asset Allocation Fund Division 19 . . . . . . . . . . . . . . . . 26,716,333 128,567
Templeton International Fund Division 20 . . . . . . . . . . . . . . . . . 73,415,215 -
------------------------------------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 624,782,027 $ 276,506,216
====================================
</TABLE>
17
<PAGE> 19
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY Bulk Rate
SEPARATE ACCOUNT A U.S. Postage
PAID
P.O. Box 3206 Permit No. 6748
Houston, Texas 77253-3206 Houston, Texas
VA 3479 REV 6/95 Recycled Paper
