<PAGE> 1
---------------------
DEAR ANCHOR SERIES TRUST INVESTOR:
The first half of the Anchor Series Trust's fiscal year (ending June 30, 1995)
has seen positive returns for all portfolios, and double-digit returns for eight
out of the twelve. The Anchor Series Trust serves as the underlying investment
for the ICAP II Variable Annuities issued by Anchor National Life Insurance
Company and, in New York, by First SunAmerica Life Insurance Company.
The following information from Wellington Management Company, the investment
adviser for the Anchor Series Trust, should give you some insight into the
markets over the past six months and how conditions affected the performance of
your underlying investments.
ECONOMIC OVERVIEW
Thus far in 1995, slower economic growth, a forestalled rise in inflation and
the accompanying drop in interest rates fueled strong growth in all U.S. capital
markets. Led by large market capitalization stocks, the S&P 500 Composite rose
steadily throughout the first six months of this year, returning 20.2% as of
June 30, 1995. The strongest performing sector in the S&P 500 this year has been
information technology, which gained almost 40% year-to-date. The poorest
performing sector, healthcare, was flat for the first half of 1995, returning
0.6%. Smaller capitalization stocks also "caught up" with the S&P 500 in the
second quarter. The NASDAQ Composite and the Russell 2000 Index ended the
six-month period with returns of 24.1% and 14.4%, respectively.
For the U.S. bond market, the drop in rates this year has been significant.
The middle of the yield curve (Treasury notes and bonds between 2 and 10 years
in maturity) saw yields decline by over 150 basis points since the beginning of
the year, with a slightly less severe drop at the shorter and longer ends of the
yield curve. This change in interest rates resulted in a strong bond rally
reflected in the Lehman Brothers Aggregate Index year-to-date increase of 11.4%.
On the international front, most foreign markets were modestly positive for
U.S. dollar-based investors during the first half of 1995. The exception
continued to be the Japanese market, which returned -8.2% year-to-date (MSCI
Japan Index -- U.S. dollar return). Overall, major foreign stock markets, as
represented by the MSCI Europe Australia Far East ("MSCI EAFE") Index, returned
2.8% as of June 30, 1995.
Within this context, the twelve Anchor Series Trust portfolios provided
representative asset class returns and, in several instances, outperformed their
respective indices. Following are the investment comments for each of the twelve
Anchor Series Trust portfolios for the six-month period ended June 30, 1995.
EQUITY PORTFOLIOS
The Convertible Securities Portfolio seeks to provide high current income and
long-term capital appreciation through investments in securities convertible
into common stock. The portfolio posted a 9.0% return for the six-month period
ended June 30, 1995. In comparison, the Merrill Lynch Convertible Securities
Index (gross returns) increased by 15.9% and the S&P 500 increased 20.2% for the
same period. Although the portfolio posted a strong absolute return
year-to-date, its relative returns were hurt by its commitment to international
convertible securities and its focus on larger capitalization
---------------------
1
<PAGE> 2
---------------------
securities. As of June 30, 1995, the portfolio held 11.3% of assets in non-U.S.
holdings versus the Merrill Lynch Index, which invests exclusively in U.S.
holdings. Exit points were found as select international securities moved away
from their 1994 lows and the portfolio's international commitment was reduced
from 22% at year-end 1994 to approximately 11% at June 30, 1995. Although we
believe that international convertibles represent an attractive diversification
opportunity and are additive to long-term performance, we feel the reduction was
warranted given the benchmark weighting at this time. Also impacting relative
returns was the fact that the convertible market (Merrill Lynch Index) tends to
comprise both newer and smaller companies, which rallied in the second quarter
of 1995 (NASDAQ outperformed the S&P 500 by roughly 4 percentage points
year-to-date).
The Foreign Securities Portfolio seeks capital appreciation through
investments in the stocks of foreign companies. The portfolio returned 2.5% for
the six months ended June 30, 1995. During the first quarter of 1995, many
international equity markets declined in response to the deepening crises in
Latin America, an earthquake in Japan, and new lows for the U.S. dollar.
However, the second quarter's global bond market rallies provided broad support
for rallies in many international equity markets. Japan was the key exception,
as weak economic news continued to depress stock prices; the market was off
-21.9% in local terms for the first half of 1995, as measured by the MSCI Index.
Due to yen strength, however, the market was down only -8.2% in U.S. dollar
terms. The portfolio's largest single country weighting (Japan), which is
focused on stocks positioned to benefit from an economic recovery, held back
returns for the six months ended June 30, 1995. On the other hand, the
portfolio's significant exposure and overweighting relative to its benchmark in
Sweden, Spain and Norway helped returns as those markets performed well. Going
forward, the portfolio continues to focus on Japanese companies that will
benefit from the important structural changes taking place in that country's
economy. In Europe, the focus is on companies that can benefit from both
recovering economies and improving cost structures that result from companies
restructuring to face the challenge of overvalued currencies.
The Growth Portfolio seeks capital appreciation through investments in larger
and medium-sized companies that have records of above-average growth and
continued prospects for solid growth in the future. The technology sector of the
S&P 500 Index, which suffered losses during the first half of 1994, led the
recent market surge, increasing by almost 40% in the first half of 1995. With
24.9% of assets invested in this sector, the Growth Portfolio posted a strong
absolute return of 14.6% as of June 30, 1995. Although the manager is pleased
with this absolute return, we acknowledge that the portfolio failed to keep pace
with the broad market (S&P 500 Index) due to a handful of smaller cap stocks
that did not achieve S&P 500-like increases, and to a slightly overweighted cash
position. As of June 30, 1995, relative to its peers, the portfolio was modestly
overweighted in the energy and healthcare sectors and underweighted in the
industrial and finance sectors. The portfolio's market capitalization strategy
is primarily focused on larger companies with a smaller weighting in mid-sized
and smaller investments.
The Capital Appreciation Portfolio seeks growth of principal for investors
through investment in growth-oriented equities, particularly those of smaller
companies. The portfolio earned a 20.1% return for the first six months of 1995,
outpacing its peers (in the Lipper Capital Appreciation category) by over 3
percentage points. The portfolio's investments in a broad spectrum of technology
firms supported this strong return, as
---------------------
2
<PAGE> 3
---------------------
did several telemedia and energy investments. As of June 30, 1995, the portfolio
remains broadly diversified with 90 issues in roughly ten different industries.
Investments in non-U.S. securities stood at 13.5% of the portfolio in nine
different countries.
The Natural Resources Portfolio invests primarily in equity securities of
companies that are expected to benefit from rising inflation. Despite concerns
of subsiding inflation, the portfolio provided an 11.4% return for the six
months ended June 30, 1995. The portfolio's equity securities are diversified
across precious metals (48%), energy (22%), paper and forest products (23%) and
other resources (7%). In addition, the portfolio continues to be somewhat
diversified geographically with 64% of assets invested in the U.S., 23% in
Canada, 12% in Australia and 1% in the U.K. After oil and gas prices recovered
from the impact of a mild winter, the portfolio's energy weighting was reduced
in favor of the paper and non-ferrous metals sectors. The outlook for such
cyclical securities appears promising as signs of an improving economy continue.
FIXED-INCOME PORTFOLIOS
The Money Market Portfolio has met its objectives of current income and
stability of principal thus far in 1995, providing a 2.8% return for the six
months ended June 30, 1995. In anticipation of Federal Reserve short-term
interest rate decreases over the next few months, the portfolio is positioned
with a longer average maturity in order to lock in prevailing yields.
The Fixed Income Portfolio's objectives are two-fold: to seek a high level of
current income that is, at the same time, consistent with preservation of
principal. For the first six months of 1995, the portfolio returned 11.3%, ahead
of its peers and in line with the Lehman Brothers Aggregate Index (11.4%). At
June 30, 1995, the portfolio was invested 58% in corporate bonds, 17% in
government bonds, 15% in mortgage-backed securities, 3% in asset-backed
securities, 2% in supranationals and 5% in cash. At June 30, 1995, the portfolio
had an average maturity of 8.0 years, and an average quality of AA.
The objective of the Government & Quality Bond Portfolio is to provide
relatively high current income, liquidity and security of principal. This
portfolio, with an average quality of AAA, provided an 11.8% return for the
first six months of 1995. The Lehman Aggregate Index returned 11.4% for the same
period. As of June 30, 1995, the portfolio was invested 40% in government
securities, 30% in mortgage-backed securities, 19% in corporates, 3% in
asset-backed securities, 3% in foreign government, 2% in municipals and 3% in
cash. The average maturity of the portfolio stood at 9.9 years as of June 30,
1995.
The High Yield Portfolio seeks to provide high current income and capital
appreciation by investing in corporate bonds rated BBB/Baa or lower. For the six
months ended June 30, 1995, the High Yield Portfolio returned 10.4%, performing
in line with its Lipper category (average 10.9%), but lagging the Lehman High
Yield Index at 12.5% and the Lehman Brothers Aggregate Index at 11.4%. As high
cash flow volatility continues to characterize this portfolio, the actively
managed competitive category is a better gauge of the portfolio's performance
than the unmanaged Lehman High Yield Index. Credit research, which contributed
considerably to 1994 and year-to-date 1995 returns, will become increasingly
critical as the economy wanes. As of June 30, 1995, the portfolio had an average
maturity of 8.0 years and an average credit quality of BB-.
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3
<PAGE> 4
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The Target '98 Portfolio, which terminates in November 1998 and therefore has
roughly 3 1/2 years until maturity, should reflect a return between the 3-year
and 5-year Treasury note. For the first six months of 1995, the portfolio
returned 9.7%, consistent with returns in that part of the yield curve. For
example, the 3-year Treasury note returned 8.4% and the 5-year Treasury note
returned 11.2% year-to-date. After several years of double-digit returns, we
believe this portfolio will start to experience returns that mirror the
portfolio's yield-to-maturity (after expenses) much more closely than it has in
the past as it nears its termination date.
BALANCED PORTFOLIOS
The Multi-Asset Portfolio returned 15.5% for the first six months of 1995,
outperforming the bond market (Lehman Brothers Aggregate, 11.4%), performing in
line with the convertible securities market (Merrill Lynch Convertible
Securities, 15.9%) and underperforming the stock market (S&P 500, 20.2%) on a
total account basis. Contributing to returns were asset allocation decisions
that overweighted stocks and underweighted (lower yielding) bonds, as well as
good performance in the equity portion of the portfolio. As of June 30, 1995,
the portfolio was invested 56% in stocks, 3% in convertible securities, 41% in
fixed income and 0% in cash.
The Strategic Multi-Asset Portfolio returned 12.1% for the first half of 1995,
outperforming the international stock market (MSCI EAFE, 2.8%), performing in
line with the high yield market (Lehman High Yield Index, 12.5%), and
underperforming the small and large market cap stock indices (Russell 2000,
14.1%; S&P 500, 20.2%). The portfolio's increased weighting in U.S. equities and
the strong U.S. stock market helped returns year-to-date. As of June 30, 1995,
the portfolio's allocation stood at 26% in U.S. core equities, 11% in capital
appreciation stocks, 29% in foreign securities, 32% in fixed-income (including
high yield bonds) and 2% in cash.
That concludes the overview from Wellington Management Company. We look
forward to reporting to you once again in six months' time, and we appreciate
the confidence you place in us in preserving and growing your retirement assets.
Sincerely,
/s/ ELI BROAD
Eli Broad
Chairman and Chief Executive Officer,
Anchor National Life Insurance Company
August 1, 1995
---------------
Note: All performance figures quoted are for the Anchor Series Trust. They do
not reflect fees and charges associated with the variable annuity. Past
performance is no guarantee of future results.
Investments in stocks and bonds are subject to risk, including stock market and
interest rate fluctuations. Investments in non-U.S. stocks and bonds are subject
to additional risks, including fluctuations, political and social instability,
differing securities regulations and accounting standards and limited public
information. High-yield bonds tend to be subject to greater price swings than
higher-rated bonds and, of course, payment of interest and principal is not
assured. Mortgage-backed securities are subject to prepayment, which can result
in reinvestment of principal at lower yields. Money market instruments generally
offer stability and income, but an investment in these securities is not
guaranteed by the U.S. government or any other entity.
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ANCHOR SERIES TRUST
MONEY MARKET PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 100.6% AMOUNT VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 65.3%
American Express Credit Corp. 6.10% due 7/05/95..................... $ 4,000,000 $ 3,997,289
ANZ (DE), Inc. 5.80% due 9/18/95.................................... 3,500,000 3,455,453
Banque Nationale de Paris 6.21% due 6/28/96......................... 3,000,000 3,000,000
Baxter International, Inc. 6.00% due 8/18/95........................ 1,000,000 992,000
BHF Finance (DE), Inc. 5.98% due 8/02/95............................ 4,000,000 3,978,738
Ciesco L.P. 5.85% due 9/12/95....................................... 1,500,000 1,482,206
Ciesco L.P. 5.85% due 9/21/95....................................... 2,000,000 1,973,350
CIT Group Holdings, Inc. 6.10% due 7/24/95.......................... 4,000,000 3,984,411
Coca-Cola Enterprises, Inc. 5.90% due 9/21/95....................... 4,000,000 3,946,245
Commerzbank U.S. Finance, Inc. 5.95% due 8/15/95.................... 1,650,000 1,637,728
CoreStates Capital Corp. 6.09% due 7/10/95(1)....................... 4,000,000 4,000,000
Corporate Asset Funding Co., Inc. 5.80% due 9/28/95................. 4,000,000 3,942,644
Ford Motor Credit Co. 5.90% due 10/19/95............................ 4,000,000 3,927,889
General Electric Capital Corp. 6.10% due 7/27/95.................... 4,000,000 3,982,378
General Motors Acceptance Corp. 5.80% due 9/19/95................... 2,000,000 1,974,222
General Motors Acceptance Corp. 5.96% due 8/28/95................... 2,000,000 1,980,796
Indosuez N.A., Inc. 5.80% due 10/13/95.............................. 4,000,000 3,932,978
International Lease Finance Corp. 5.90% due 9/07/95................. 2,150,000 2,126,039
International Paper Co. 6.20% due 7/10/95........................... 1,000,000 998,450
Kredietbank N.A. Finance Corp. 5.90% due 9/07/95.................... 1,000,000 988,856
McKenna Triangle National Corp. 5.95% due 8/04/95................... 4,000,000 3,977,522
Monsanto Co. 5.75% due 11/21/95..................................... 4,000,000 3,908,639
Prudential Funding Corp. 5.87% due 8/28/95.......................... 3,000,000 2,971,628
San Paolo U.S. Financial Co. 5.98% due 7/18/95...................... 4,000,000 3,988,704
Sears Roebuck Acceptance Corp. 6.10% due 7/11/95.................... 4,000,000 3,993,222
Shell Oil Co. 5.90% due 10/03/95.................................... 1,000,000 984,594
Toshiba America, Inc. 5.95% due 9/08/95............................. 1,000,000 988,596
Toshiba America, Inc. 6.02% due 7/28/95............................. 2,850,000 2,837,132
Westpac Capital Corp. 6.11% due 7/06/95............................. 2,000,000 1,998,303
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost: $81,950,012)................ 81,950,012
-------------
FEDERAL AGENCY OBLIGATIONS -- 29.7%
Federal Farm Credit Bank Discount Note 5.86% due 8/11/95............ 3,500,000 3,476,641
Federal Home Loan Mortgage Discount Note 5.94% due 8/07/95.......... 4,190,000 4,164,420
Federal Home Loan Mortgage Discount Note 6.03% due 7/03/95.......... 1,715,000 1,714,426
Federal National Mortgage Association Discount Note 5.75% due
10/26/95.......................................................... 5,000,000 4,906,563
Federal National Mortgage Association Discount Note 6.04% due
7/17/95........................................................... 7,000,000 6,981,209
Federal National Mortgage Association Discount Note 6.40% due
7/26/95........................................................... 6,000,000 5,973,333
Student Loan Marketing Association 5.70% due 7/05/95(1)............. 10,000,000 10,000,000
-------------
TOTAL FEDERAL AGENCY OBLIGATIONS (cost: $37,216,592)................ 37,216,592
-------------
</TABLE>
---------------------
5
<PAGE> 6
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MISCELLANEOUS -- 5.6%
First America Bank Michigan North America Kalamazo 6.04% due 8/16/95
(cost: $2,000,000)................................................ $ 2,000,000 $ 2,000,000
SMM Trust 6.24% due 8/11/95 (cost: $5,000,000)*(1).................. 5,000,000 5,000,000
------------
TOTAL MISCELLANEOUS (cost: $7,000,000).............................. 7,000,000
------------
TOTAL SHORT-TERM SECURITIES (cost: $126,166,604).................... 126,166,604
------------
<CAPTION>
REPURCHASE AGREEMENT -- 2.2%
-----------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (See Note 3)
(cost: $2,735,000)................................................ 2,735,000 2,735,000
------------
TOTAL INVESTMENTS --
(cost: $128,901,604) 102.8% 128,901,604
Liabilities in excess of other assets -- (2.8) (3,505,300)
------ ------------
NET ASSETS -- 100.0% $125,396,304
====== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Variable rate security - the rate reflected is as of
June 30, 1995, maturity date reflects next reset date
See Notes to Financial Statements
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ANCHOR SERIES TRUST
GOVERNMENT & QUALITY BOND
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 97.2% AMOUNT VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE -- 3.1%
Daimler-Benz Vehicle Trust 5.95% 2000............................... $ 3,070,068 $ 3,065,828
Premier Auto Trust 4.65% 1999....................................... 3,375,259 3,308,290
-------------
6,374,118
-------------
FINANCE -- 11.9%
Beneficial Corp. 5.44% 1999(1)...................................... 5,000,000 4,918,900
Dean Witter, Discover & Co. 7.86% 2004.............................. 4,000,000 4,254,640
Ford Motor Credit 6.60% 1999(1)..................................... 5,000,000 4,893,750
General Reinsurance Corp. 9.00% 2009................................ 5,000,000 5,884,550
Stanford University 6.88% 2024...................................... 5,000,000 4,712,045
-------------
24,663,885
-------------
RETAIL -- 2.3%
Wal-Mart Stores, Inc. 6.75% 2023.................................... 5,000,000 4,689,950
-------------
TRANSPORTATION -- 2.8%
United Parcel Service America, Inc. 8.38% 2020...................... 5,000,000 5,701,050
-------------
U.S. GOVERNMENT & AGENCIES -- 69.8%
Federal Farm Credit Bank 6.75% 1998................................. 18,000,000 18,060,300
Federal Home Loan Mortgage Corp. 7.29% 2004......................... 20,000,000 19,990,600
Federal Home Loan Mortgage Corp. 14.75% 2010........................ 215,907 242,896
Federal National Mortgage Association 7.50% 2023 - 2025............. 4,965,922 4,979,876
Federal National Mortgage Association 8.00% TBA..................... 14,943,427 15,218,835
Government National Mortgage Association 6.50% TBA.................. 25,000,000 24,015,500
Government National Mortgage Association 7.50% 2022................. 9,455,099 9,502,374
Government National Mortgage Association 9.50% TBA.................. 1,139,178 1,216,743
Government National Mortgage Association 9.50% 2016................. 2,628,709 2,810,991
Government National Mortgage Association 10.00% 2013 - 2017......... 3,626,667 3,875,445
Government National Mortgage Association 11.50% 2014................ 24,687 27,040
Government National Mortgage Association 12.00% 1999 - 2016......... 229,441 244,187
Government National Mortgage Association 12.75% 2014................ 81,545 90,464
Government National Mortgage Association 13.25% 1999 - 2014......... 22,161 24,364
Government National Mortgage Association 13.50% 2014................ 12,327 13,621
Government National Mortgage Association 13.75% 2014................ 2,654 2,926
United States Treasury Notes 6.38% 2002............................. 18,000,000 18,213,660
United States Treasury Notes 6.50% 1999............................. 25,000,000 25,429,750
-------------
143,959,572
-------------
UTILITIES: ELECTRIC, GAS & TELEPHONE -- 7.3%
Hydro Quebec Electric 8.40% 2022.................................... 5,000,000 5,343,300
Southern California Edison Co. 9.25% 2020........................... 5,000,000 5,234,250
US West Communications, Inc. 6.88% 2033............................. 5,000,000 4,557,750
-------------
15,135,300
-------------
TOTAL INVESTMENT SECURITIES (cost: $199,595,224).................... 200,523,875
-------------
</TABLE>
---------------------
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<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 1.3% AMOUNT VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Joint Repurchase Agreement Account (See Note 3)
(cost: $2,635,000)................................................ $ 2,635,000 $ 2,635,000
-------------
TOTAL INVESTMENTS --
(cost: $202,230,224) 98.5% 203,158,875
Other assets less liabilities -- 1.5 3,033,992
------ -------------
NET ASSETS -- 100.0% $206,192,867
====== =============
</TABLE>
-----------------------------
(1) Variable rate security - the rate reflected is as of
June 30, 1995, maturity date reflects next reset date
TBA - Securities purchased on a forward commitment basis
with an approximate principal amount and no
definitive maturity date. The actual principal
amount and maturity date will be determined upon
settlement.
See Notes to Financial Statements
---------------------
8
<PAGE> 9
---------------------
ANCHOR SERIES TRUST
FIXED INCOME PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 95.2% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED SECURITIES -- 3.3%
Discover Card Trust, Series A 5.50% 1998............................ $ 916,667 $ 912,368
------------
FINANCE -- 30.8%
Abbey National First Capital 8.20% 2004............................. 500,000 542,495
Ahmanson (H.F.) & Co. 8.25% 2002.................................... 500,000 532,135
Bank of New York, Inc. 7.63% 2002................................... 500,000 513,670
BankAmerica Corp. 7.25% 1997........................................ 500,000 508,930
Beneficial Finance Co. 9.40% 1997................................... 225,000 237,386
Chemical Banking Corp. 6.63% 1998................................... 750,000 752,977
Citicorp 8.63% 2002................................................. 1,000,000 1,091,960
Dean Witter, Discover & Co. 6.00% 1998.............................. 750,000 743,723
First Bank Systems, Inc. 8.00% 2004................................. 500,000 535,445
First National Bank of Boston 8.00% 2004............................ 1,000,000 1,059,670
General Motors Acceptance Corp. 8.50% 2003.......................... 500,000 543,110
Norwest Corp. Bank 7.65% 2005....................................... 500,000 535,565
Transamerica Financial Group, Inc. 9.25% 1998....................... 500,000 534,030
World Savings & Loan Association 7.63% 1997......................... 500,000 511,005
------------
8,642,101
------------
INDUSTRIAL & COMMERCIAL -- 15.8%
British Petroleum America, Inc. 9.88% 2004.......................... 500,000 604,865
British Petroleum America, Inc. 10.15% 1996......................... 500,000 513,110
du Pont E.I. de Nemours & Co. 6.75% 2002............................ 493,000 496,426
Ford Motor Co. 7.88% 1996........................................... 500,000 509,945
Ford Motor Co. 9.00% 2001........................................... 500,000 555,125
Lockheed Corp. 5.88% 1998........................................... 750,000 740,610
Penney (J.C.), Inc. 6.00% 2006...................................... 500,000 464,935
Rockwell International Corp. 7.88% 2005............................. 500,000 543,390
------------
4,428,406
------------
RETAIL -- 1.7%
Wal-Mart Stores, Inc. 5.88% 2005.................................... 500,000 467,410
------------
SUPRANATIONALS -- 1.9%
International Bank for Reconstruction & Development 9.77% 1998...... 500,000 546,965
------------
TRANSPORTATION -- 2.0%
CSX Corp. 9.50% 2000................................................ 500,000 560,575
------------
</TABLE>
---------------------
9
<PAGE> 10
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT & AGENCIES -- 31.8%
Federal Home Loan Participation 7.50% 2007.......................... $ 938,288 $ 935,698
Federal Home Loan Participation 9.75% 2002.......................... 529,806 571,857
Federal Home Loan Participation 11.00% 2000......................... 15,196 16,003
Government National Mortgage Association 8.00% TBA.................. 399,466 408,954
Government National Mortgage Association 8.00% 2024................. 589,078 603,068
Government National Mortgage Association 8.50% 2002................. 310,207 322,711
Government National Mortgage Association 9.00% TBA.................. 178,505 187,486
Government National Mortgage Association 9.00% 2016 - 2023.......... 995,304 1,051,086
Government National Mortgage Association 10.00% 2000................ 39,009 41,069
Government National Mortgage Association 11.25% 1998................ 11,316 12,122
Government National Mortgage Association 13.25% 1999................ 2,130 2,287
United States Treasury Bonds 7.25% 2016............................. 4,500,000 4,769,280
------------
8,921,621
------------
UTILITIES -- 7.9%
AT&T Corp. 6.75% 2004............................................... 500,000 500,270
Bellsouth Telecommunications 6.25% 2003............................. 500,000 489,900
Niagara Mohawk Power Corp. 5.88% 2002............................... 750,000 700,777
Southern California Edison Co. 7.50% 1999........................... 500,000 516,280
------------
2,207,227
------------
TOTAL INVESTMENT SECURITIES (cost: $25,475,244)..................... 26,686,673
------------
<CAPTION>
REPURCHASE AGREEMENT -- 3.3%
----------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (See Note 3)
(cost: $915,000).................................................. 915,000 915,000
------------
TOTAL INVESTMENTS --
(cost: $26,390,244) 98.5% 27,601,673
Other assets less liabilities -- 1.5 428,063
------ ------------
NET ASSETS -- 100.0% $28,029,736
====== ============
</TABLE>
-----------------------------
TBA - Securities purchased on a forward commitment basis
with an approximate principal amount and no
definitive maturity date. The actual principal
amount and maturity date will be determined upon
settlement.
See Notes to Financial Statements
---------------------
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<PAGE> 11
---------------------
ANCHOR SERIES TRUST
GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 96.5% SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 13.0%
Apparel & Textiles -- 1.0%
Tommy Hilfiger Corp.+............................................... 100,000 $ 2,800,000
Retail -- 12.0%
AutoZone, Inc.+..................................................... 100,000 2,512,500
Baby Superstore, Inc.+.............................................. 29,000 1,366,625
Boise Cascade Office Products Co. .................................. 5,500 122,375
Eckerd Jack Corp. .................................................. 80,000 2,560,000
Gymboree Corp.+..................................................... 50,000 1,453,125
Home Depot, Inc. ................................................... 120,000 4,875,000
May Department Stores Co. .......................................... 150,000 6,243,750
Penney (J.C.), Inc. ................................................ 82,000 3,936,000
Rite Aid Corp. ..................................................... 100,000 2,562,500
Sports Authority, Inc.+............................................. 146,800 2,991,050
Toys R Us, Inc.+.................................................... 150,000 4,387,500
-------------
35,810,425
-------------
CONSUMER STAPLES -- 5.5%
Food, Beverage & Tobacco -- 5.5%
Canandaigua Wine, Inc., Class A+.................................... 75,000 3,356,250
Embotelladora Andina ADR............................................ 50,000 1,756,250
PepsiCo, Inc. ...................................................... 110,000 5,018,750
Ralston Purina Group................................................ 100,000 5,100,000
-------------
15,231,250
-------------
ENERGY -- 11.1%
Energy Services -- 0.3%
Seagull Energy Corp.+............................................... 60,000 990,000
Energy Sources -- 10.8%
Anadarko Petroleum Corp. ........................................... 30,000 1,293,750
Apache Corp. ....................................................... 50,000 1,368,750
Barrett Resources Corp. ............................................ 60,000 1,395,000
Burlington Resources, Inc. ......................................... 30,000 1,106,250
Exxon Corp. ........................................................ 110,000 7,768,750
Poco Petroleum Ltd. ADR+............................................ 430,000 2,935,020
Pogo Producing Co. ................................................. 70,000 1,601,250
Tarragon Oil & Gas Ltd.+............................................ 285,000 2,853,112
Union Texas Petroleum Holdings, Inc. ............................... 130,000 2,746,250
Unocal Corp. ....................................................... 185,000 5,110,625
Vastar Resources, Inc. ............................................. 50,000 1,543,750
-------------
30,712,507
-------------
FINANCE -- 5.4%
Financial Services -- 2.9%
Federal National Mortgage Association............................... 85,000 8,021,875
Insurance -- 2.5%
ACE Ltd. ........................................................... 96,000 2,784,000
American International Group, Inc. ................................. 35,000 3,990,000
-------------
14,795,875
-------------
</TABLE>
---------------------
11
<PAGE> 12
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 14.1%
Drugs -- 6.4%
Fujisawa Pharmaceutical Co. ........................................ 358,000 $ 3,750,858
Hafslund Nycomed, Series A ADR...................................... 139,260 3,277,238
Hafslund Nycomed, Series B ADR...................................... 70,000 1,618,750
Immunex Corp.+...................................................... 176,000 2,288,000
Perrigo Co.+........................................................ 225,000 2,489,062
Rhone Poulenc Rorer, Inc. .......................................... 100,000 4,087,500
Health Services -- 3.9%
Beverly Enterprises, Inc.+.......................................... 230,000 2,846,250
FHP International Corp.+............................................ 106,800 2,456,400
Hillhaven Corp.+.................................................... 124,900 3,528,425
Physician Corp. of America+......................................... 150,000 2,043,750
Medical Products -- 3.8%
Guidant Corp. ...................................................... 120,000 2,880,000
Mckesson Corp. ..................................................... 110,000 5,142,500
United States Surgical Corp. ....................................... 115,000 2,400,625
-------------
38,809,358
-------------
INDUSTRIAL & COMMERCIAL -- 1.6%
Business Services -- 0.7%
Videoserver, Inc. .................................................. 51,400 2,004,600
Transportation -- 0.9%
Werner Enterprises, Inc. ........................................... 123,300 2,466,000
-------------
4,470,600
-------------
INFORMATION & ENTERTAINMENT -- 13.6%
Broadcasting & Media -- 9.6%
CBS, Inc. .......................................................... 35,000 2,345,000
Gaylord Entertainment Co., Class A.................................. 210,000 5,302,500
MFS Communications, Inc. ........................................... 75,000 2,418,750
Multimedia, Inc.+................................................... 27,500 1,065,625
Scholastic Corp.+................................................... 67,500 3,661,875
Viacom, Inc., Class A+.............................................. 20,000 930,000
Viacom, Inc., Class B+.............................................. 151,537 7,027,529
Vodafone Group PLC ADR.............................................. 100,000 3,787,500
Leisure & Tourism -- 4.0%
International Game Technology, Inc. ................................ 150,000 2,306,250
McDonald's Corp. ................................................... 160,000 6,260,000
Royal Caribbean Cruises Ltd. ....................................... 110,000 2,420,000
-------------
37,525,029
-------------
INFORMATION TECHNOLOGY -- 24.9%
Communication Equipment -- 8.5%
Cabletron Systems, Inc.+............................................ 46,800 2,492,100
California Microwave, Inc. +........................................ 130,000 3,258,125
cisco Systems, Inc.+................................................ 94,200 4,762,987
General DataComm Industries, Inc.+.................................. 170,000 2,125,000
General Instrument Corp.+........................................... 140,000 5,372,500
Mobilemedia Corp. .................................................. 9,800 200,900
Nokia Corp. ADR..................................................... 63,400 3,780,225
Premisys Communications, Inc. ...................................... 1,500 96,844
Uunet Technologies, Inc.+........................................... 53,400 1,468,500
Computers & Business Equipment -- 5.6%
COMPAQ Computer Corp.+.............................................. 130,000 5,898,750
Hewlett-Packard Co. ................................................ 91,600 6,824,200
Sensormatic Electronics Corp. ...................................... 80,000 2,840,000
</TABLE>
---------------------
12
<PAGE> 13
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 1.5%
AMP, Inc. .......................................................... 100,000 $ 4,225,000
Software -- 9.3%
Baan Co. NV......................................................... 5,800 179,075
BMC Software, Inc. ................................................. 70,000 5,407,500
Cheyenne Software, Inc.+............................................ 170,000 3,145,000
Compuware Corp.+.................................................... 140,000 4,305,000
Microsoft Corp.+.................................................... 40,000 3,615,000
Parametric Technology Corp.+........................................ 70,000 3,482,500
Policy Management Systems Corp.+.................................... 100,000 4,600,000
Spyglass, Inc. ..................................................... 28,400 812,950
-------------
68,892,156
-------------
MATERIALS -- 4.3%
Chemicals -- 4.3%
Albemarle Corp. .................................................... 170,000 2,656,250
Engelhard Corp. .................................................... 99,950 4,285,356
Minerals Technologies, Inc. ........................................ 125,000 4,500,000
PMI Group, Inc. .................................................... 11,000 477,126
-------------
11,918,732
-------------
UTILITIES -- 3.0%
Telephone -- 3.0%
AT&T Corp. ......................................................... 82,000 4,356,250
MCI Communications Corp. ........................................... 180,000 3,960,000
-------------
8,316,250
-------------
TOTAL INVESTMENT SECURITIES (cost: $226,975,603).................... 266,482,182
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 4.1% AMOUNT
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (See Note 3)
(cost: $11,370,000)............................................... $11,370,000 11,370,000
-------------
TOTAL INVESTMENTS -- (cost: $238,345,603) 100.6% 277,852,182
Liabilities in excess of other assets -- (0.6) (1,639,717)
------ -------------
NET ASSETS -- 100.0% $276,212,465
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR - American Depositary Receipts
See Notes to Financial Statements
---------------------
13
<PAGE> 14
---------------------
ANCHOR SERIES TRUST
HIGH-YIELD PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 87.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CABLE -- 2.8%
Comcast Corp. 9.38% 2005............................................ $ 500,000 $ 498,750
Continental Cablevision, Inc. 11.00% 2007........................... 500,000 555,000
Marcus Cable Co. L.P. zero coupon 2005(1)........................... 250,000 133,125
Marcus Cable Operating Co. L.P. zero coupon 2004(1)................. 350,000 221,375
------------
1,408,250
------------
CHEMICALS -- 2.6%
General Chemical Corp. 9.25% 2003................................... 250,000 245,000
PMI Acquisition Corp. 10.25% 2003................................... 500,000 505,000
Rexene Corp. 11.75% 2004............................................ 500,000 535,000
------------
1,285,000
------------
COMMUNICATIONS & MEDIA -- 8.2%
Granite Broadcasting Corp. 10.38% 2005.............................. 500,000 500,000
Granite Broadcasting Corp. 12.75% 2002.............................. 500,000 537,500
Heritage Media Services, Inc. 11.00% 2002........................... 500,000 538,750
SFX Broadcasting, Inc. 11.38% 2000.................................. 250,000 260,625
Turner Broadcasting Systems, Inc. 8.40% 2024........................ 750,000 664,958
World Color Press, Inc. 9.13% 2003.................................. 750,000 727,500
Young Broadcasting, Inc. 11.75% 2004................................ 750,000 817,500
------------
4,046,833
------------
CONSUMER STAPLES -- 3.6%
Fieldcrest Cannon, Inc. 11.25% 2004................................. 250,000 260,000
Gruma SA de CV 9.75% 1998........................................... 250,000 226,250
Jordan Industries, Inc. 10.38% 2003................................. 350,000 322,875
Sweetheart Cup, Inc. 10.50% 2003.................................... 500,000 495,000
Westpoint Stevens, Inc. 8.75% 2001.................................. 500,000 492,500
------------
1,796,625
------------
ENERGY -- 4.4%
Energy Ventures, Inc. 10.25% 2004................................... 500,000 512,500
Maxus Energy Corp. 9.38% 2003....................................... 250,000 231,250
Santa Fe Energy Resources, Inc. 11.00% 2004......................... 500,000 532,500
Seagull Energy Corp. 8.63% 2005..................................... 500,000 475,000
YPF Sociedad Anonima 8.00% 2004..................................... 500,000 435,000
------------
2,186,250
------------
FINANCE -- 2.0%
Anchor Bancorp, Inc 8.94% 2003...................................... 250,000 245,000
I.C.H Corp. 11.25% 1996............................................. 150,000 118,500
Imperial Credit Industries, Inc. 9.75% 2004......................... 500,000 412,500
Tiphook Finance Corp. 8.00% 2000.................................... 250,000 200,000
------------
976,000
------------
FOOD & LODGING -- 4.0%
Hammons (John Q.) Hotels L.P. 8.88% 2004............................ 500,000 485,000
La Quinta Inns, Inc. 9.25% 2003..................................... 500,000 521,250
Red Roof Inns, Inc. 9.63% 2003...................................... 250,000 247,500
Silgan Holdings, Inc. zero coupon 2002(1)........................... 250,000 226,250
Specialty Equipment Cos., Inc. 11.38% 2003.......................... 500,000 513,750
------------
1,993,750
------------
</TABLE>
---------------------
14
<PAGE> 15
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GAMING -- 0.8%
GB Property Funding Corp. 10.88% 2004............................... $ 500,000 $ 425,000
------------
GROCERY -- 3.3%
Big V Supermarkets, Inc. 11.00% 2004................................ 500,000 417,500
Dominicks Finer Foods, Inc. 10.88% 2005............................. 225,000 228,375
Kash N' Karry Food Stores, Inc. 11.50% 2003(2)...................... 350,000 360,500
Penn Traffic Co. 9.63% 2005......................................... 250,000 235,625
Star Market Co, Inc. 13.00% 2004.................................... 400,000 392,000
------------
1,634,000
------------
HEALTHCARE -- 3.6%
Hillhaven Corp. 10.13% 2001......................................... 350,000 364,000
National Medical Enterprises, Inc. 9.63% 2002....................... 325,000 342,875
National Medical Enterprises, Inc. 10.13% 2005...................... 225,000 237,656
OrNda Healthcorp 11.38% 2004........................................ 750,000 819,375
------------
1,763,906
------------
INDUSTRIAL & COMMERCIAL -- 18.4%
American Standard, Inc. zero coupon 2005(1)......................... 1,500,000 1,140,000
Beazer USA, Inc. 9.00% 2004......................................... 350,000 308,875
Continental Homes 12.00% 1999....................................... 500,000 502,500
Day International Group, Inc. 11.13% 2005........................... 425,000 425,531
Digital Equipment Corp. 7.75% 2023.................................. 500,000 457,775
Dominion Textile USA, Inc. 8.88% 2003............................... 250,000 250,000
EnviroSource, Inc. 9.75% 2003....................................... 750,000 675,000
Essex Group, Inc. 10.00% 2003....................................... 500,000 482,500
Exide Corp. 10.75% 2002............................................. 50,000 52,875
Huntsman Corp. 10.63% 2001.......................................... 500,000 527,500
Interlake Corp. 12.13% 2002......................................... 500,000 493,750
K & F Co. 11.88% 2003............................................... 150,000 153,000
K & F Industries, Inc. 13.75% 2001.................................. 475,000 490,438
Lear Seating Corp. 8.25% 2002....................................... 250,000 237,500
Lone Star Industries, Inc. 10.00% 2003.............................. 320,000 320,000
Rainy River Forest Products, Inc. 10.75% 2001....................... 500,000 518,750
Rohr, Inc. 11.63% 2003.............................................. 750,000 791,250
Silgan Corp. 11.75% 2002............................................ 150,000 156,750
UCAR Global Enterprises, Inc. 12.00% 2005........................... 375,000 405,000
Uniroyal Technology Corp. 11.75% 2003............................... 50,000 45,000
Webb (Del) Corp. 9.00% 2006......................................... 750,000 671,250
------------
9,105,244
------------
METALS & MINERALS -- 14.2%
A.K. Steel Corp. 10.75% 2004........................................ 500,000 525,000
Agriculture Minerals & Chemicals 10.75% 2003........................ 500,000 513,750
Arcadian Partners L.P. 10.75% 2005.................................. 500,000 503,750
Armco, Inc. 9.38% 2000.............................................. 750,000 720,000
Bethlehem Steel Corp. 10.38% 2003................................... 750,000 746,250
Geneva Steel Co. 11.13% 2001........................................ 100,000 79,000
Magma Copper Co. 8.70% 2005......................................... 250,000 248,750
Magma Copper Co. 12.00% 2001........................................ 500,000 552,500
Northwestern Steel & Wire Co. 9.50% 2001............................ 250,000 233,750
Sherritt Gordon, Ltd. 10.50% 2014................................... 500,000 486,250
South Dakota Warren Co. 12.00% 2004................................. 275,000 296,312
Tolmex SA de CV 8.38% 2003.......................................... 500,000 362,970
Weirton Steel Corp. 10.88% 1999..................................... 300,000 303,000
Weirton Steel Corp. 11.50% 1998..................................... 750,000 780,000
Wheeling Pittsburgh Corp. 9.38% 2003................................ 750,000 682,500
------------
7,033,782
------------
</TABLE>
---------------------
15
<PAGE> 16
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.1%
Republic of Argentina 8.38% 2003.................................... $ 750,000 $ 553,125
------------
PAPER PRODUCTS -- 8.0%
Container Corp. America 9.75% 2003.................................. 500,000 495,000
Container Corp. America 11.25% 2004................................. 450,000 468,000
Domtar, Inc. 11.75% 1999............................................ 750,000 821,250
Fort Howard Corp. 9.25% 2001........................................ 750,000 738,750
Grupo Industrial Durango SA de CV 12.00% 2001....................... 500,000 375,000
Repap New Brunswick, Inc. 9.88% 2000................................ 500,000 505,000
Stone Container Corp. 11.88% 1998................................... 500,000 538,750
------------
3,941,750
------------
RETAIL -- 0.7%
Levitz Furniture Corp. 9.63% 2003................................... 500,000 370,000
------------
SERVICES -- 1.4%
Penda Corp. 10.75% 2004............................................. 750,000 682,500
------------
TRANSPORTATION -- 1.9%
Transport Resources, Inc. 11.88% 2002(3)............................ 500,000 453,750
USAir, Inc. 10.38% 2013............................................. 500,000 475,000
------------
928,750
------------
UTILITIES -- 6.0%
Cabot Safety Acquisition Corp. 12.50% 2005.......................... 350,000 352,625
Cleveland Electric Illuminating Co. 9.50% 2005...................... 500,000 501,385
First PV Funding Corp. 10.15% 2016.................................. 500,000 514,375
Midland Funding Corp. 11.75% 2005................................... 350,000 354,553
Telefonica de Argentina SA 11.88% 2004.............................. 500,000 482,500
Texas-New Mexico Power Co. 10.75% 2003.............................. 500,000 535,000
Transportadora De Gas Delaware 7.75% 1998........................... 250,000 217,813
------------
2,958,251
------------
TOTAL BONDS & NOTES (cost: $42,841,222)............................. 43,089,016
------------
<CAPTION>
COMMON STOCK -- 0.2% SHARES
----------------------------------------------------------------------------------------------------
INDUSTRIAL & COMMERCIAL -- 0.2%
Triangle Wire And Cable, Inc. (cost: $330,000)+(4).................. 31,667 110,835
------------
<CAPTION>
PREFERRED STOCK -- 2.2%
----------------------------------------------------------------------------------------------------
FINANCE -- 1.6%
California Federal Bank Los Angeles 10.63%.......................... 2,500 267,500
Dime Savings Bank 10.50%............................................ 500,000 540,000
------------
807,500
------------
MATERIALS -- 0.6%
BCP Essex Holdings, Preferred Series A 15.00%....................... 10,000 265,000
------------
TOTAL PREFERRED STOCK (cost: $1,039,150)............................ 1,072,500
------------
TOTAL INVESTMENT SECURITIES (cost: $44,210,372)..................... 44,272,351
------------
</TABLE>
---------------------
16
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 9.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Joint Repurchase Agreement Account (See Note 3)
(cost: $4,490,000)................................................ $4,490,000 $ 4,490,000
------------
TOTAL INVESTMENTS --
(cost: $48,700,372) 98.5% 48,762,351
Other assets less liabilities -- 1.5 753,308
------ ------------
NET ASSETS -- 100.0% $49,515,659
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Represents a zero-coupon bond which will convert to an
interest-bearing security at a later date
(2) PIK ("Payment-in-Kind") payment made with additional
securities in lieu of cash
(3) Fair valued security; see Note 2
(4) Restricted securities (the Portfolio will not bear any
costs, including those involved in registration under
the Securities Act of 1933, in connection with the
disposition of the security):
<TABLE>
<CAPTION>
VALUATION
DATE OF UNIT AS OF
DESCRIPTION ACQUISITION SHARES COST 6/30/95
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Triangle Wire and Cable, Inc. 3/21/94 10,556 $10.72 $3.50
Triangle Wire and Cable, Inc. 3/24/94 21,111 10.27 3.50
</TABLE>
See Notes to Financial Statements
---------------------
17
<PAGE> 18
---------------------
ANCHOR SERIES TRUST
STRATEGIC MULTI-ASSET
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 36.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION -- 10.6%
Apparel & Textiles -- 0.1%
Tommy Hilfiger Corp.+............................................... 1,700 $ 47,600
Broadcasting & Media -- 3.3%
American Radio Systems Corp. ....................................... 600 13,650
CBS, Inc. .......................................................... 1,000 67,000
Central European Media Enterprises, Ltd.+........................... 5,000 74,375
E-Z Communications, Inc.+........................................... 8,000 148,000
Emmis Broadcasting Corp.+........................................... 3,500 95,375
Evergreen Media Corp.+.............................................. 7,840 203,840
Gaylord Entertainment Co., Class A.................................. 1,365 34,466
International Cabletel, Inc.+....................................... 3,000 97,500
Jacor Communications, Inc.+......................................... 10,500 168,000
Lodgenet Entertainment Corp.+....................................... 8,000 72,000
Multimedia, Inc.+................................................... 1,600 62,000
News Corp., Ltd. ADR................................................ 2,000 40,000
Saga Communications, Inc.+.......................................... 7,100 147,325
Scholastic Corp.+................................................... 1,500 81,375
Scripps (E.W.) Co., Class A......................................... 4,000 129,000
SFX Broadcasting, Inc.+............................................. 10,000 267,500
Valuevision International, Inc.+.................................... 2,200 10,038
Viacom, Inc. Class A+............................................... 320 14,880
Viacom, Inc. Class B+............................................... 2,424 112,413
Vodafone Group PLC ADR.............................................. 1,500 56,812
Westwood One, Inc.+................................................. 8,000 117,000
Young Broadcasting, Inc.+........................................... 5,000 138,750
Communication Equipment -- 0.9%
BroadBand Technologies, Inc.+....................................... 1,500 37,125
Cabletron Systems, Inc.+............................................ 300 15,975
California Microwave, Inc.+......................................... 2,700 67,669
Cisco Systems, Inc.+................................................ 500 25,281
General Instrument Corp.+........................................... 1,700 65,237
Mobilemedia Corp. .................................................. 3,000 61,500
Nokia Corp. ADR..................................................... 4,000 238,500
Shiva Corp.+........................................................ 1,000 43,250
Uunet Technologies, Inc.+........................................... 1,500 41,250
Computers & Business Equipment -- 0.1%
Sensormatic Electronics Corp. ...................................... 1,500 53,250
Drugs -- 0.7%
A.L. Pharmaceutical, Inc., Class A.................................. 5,500 103,125
Biogen, Inc.+....................................................... 1,500 66,750
Hafslund Nycomed, Series A ADR...................................... 2,991 70,388
Hafslund Nycomed, Series B ADR...................................... 2,000 46,250
Immunex Corp.+...................................................... 9,000 117,000
Zeneca Group PLC ADR................................................ 4,500 75,978
</TABLE>
---------------------
18
<PAGE> 19
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION (continued)
Electrical Equipment -- 0.3%
York International Corp. ........................................... 4,000 $ 180,000
Electronics -- 0.1%
Cyrix Corp.+........................................................ 1,800 43,425
Energy Services -- 0.2%
Input/Output, Inc.+................................................. 4,000 144,000
Energy Sources -- 0.3%
Unocal Corp. ....................................................... 3,500 96,688
Vastar Resources, Inc. ............................................. 3,000 92,625
Entertainment Products -- 0.1%
Philips Electronics N.V., ADR....................................... 1,500 64,125
Financial Services -- 0.1%
Imperial Credit Industries, Inc.+................................... 5,500 68,063
Food, Beverage & Tobacco -- 0.1%
Embotelladora Andina ADR............................................ 1,000 35,125
Health Services -- 0.8%
American Medical Response, Inc.+.................................... 3,000 84,000
Beverly Enterprises, Inc.+.......................................... 3,000 37,125
FHP International Corp.+............................................ 3,000 69,000
Grancare, Inc.+..................................................... 8,000 129,000
Hillhaven Corp.+.................................................... 2,500 70,625
Living Centers of America, Inc.+.................................... 1,800 48,825
Physician Corp. of America+......................................... 3,200 43,600
Insurance -- 0.3%
American Reinsurance Corp.+......................................... 2,000 74,500
Home State Holdings, Inc.+.......................................... 4,800 47,400
Transatlantic Holdings, Inc. ....................................... 900 58,500
Leisure & Tourism -- 0.4%
Mikohn Gaming Corp.+................................................ 6,000 32,250
Quality Dining, Inc.+............................................... 600 9,750
Royal Caribbean Cruises Ltd. ....................................... 4,000 88,000
Tabcorp Holdings Ltd. ADR*.......................................... 5,000 103,134
Machinery -- 0.1%
Precision Castparts Corp. .......................................... 2,200 77,275
Medical Products -- 0.2%
Haemonetics Corp. Massachusetts+.................................... 4,500 86,625
Heart Technology, Inc.+............................................. 3,400 65,875
Metals & Minerals -- 0.1%
Quanex Corp. ....................................................... 2,500 61,875
Real Estate Investment Trusts -- 0.0%
Starwood Lodging Trust.............................................. 600 14,100
Retail -- 0.3%
Baby Superstore, Inc.+.............................................. 400 18,850
Bed Bath & Beyond, Inc.+............................................ 1,000 24,250
Gymboree Corp.+..................................................... 2,000 58,125
Mercantile Stores Co., Inc. ........................................ 1,000 46,500
Sports Authority, Inc.+............................................. 3,700 75,388
</TABLE>
---------------------
19
<PAGE> 20
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION (continued)
Software -- 1.6%
BISYS Group, Inc.+.................................................. 6,400 $ 142,400
BMC Software, Inc.+................................................. 3,500 270,375
Boole & Babbage, Inc. .............................................. 1,000 30,000
Cheyenne Software, Inc.+............................................ 3,500 64,750
Cognos, Inc. ....................................................... 3,000 86,250
CompuWare Corp.+.................................................... 1,500 46,125
FTP Software, Inc.+................................................. 3,000 90,000
Parametric Technology Corp.+........................................ 1,000 49,750
Softkey International, Inc.+........................................ 5,000 159,375
Spectrum Holobyte, Inc.+............................................ 3,500 50,094
Spyglass, Inc. ..................................................... 600 17,175
Systems & Computer Technology Corp.+................................ 1,000 20,000
Transportation -- 0.5%
AMR Corp.+.......................................................... 1,500 111,937
Continental Airlines, Inc., Class B+................................ 4,000 100,500
Swift Transportation Co., Inc. ..................................... 600 10,050
Werner Enterprises, Inc. ........................................... 5,500 110,000
------------
6,834,831
------------
CORE EQUITY -- 25.7%
Banks -- 1.4%
Crestar Financial Corp. ............................................ 7,000 343,000
Fleet Financial Group, Inc. ........................................ 6,500 241,312
Republic New York Corp. ............................................ 6,000 336,000
Broadcasting & Media -- 3.1%
Capital Cities/ABC, Inc. ........................................... 2,500 270,000
Comcast Corp. ...................................................... 12,500 232,031
Gannett Co., Inc. .................................................. 6,200 336,350
Gaylord Entertainment Co., Class A.................................. 7,870 198,718
Multimedia, Inc.+................................................... 4,500 174,375
Scholastic Corp.+................................................... 4,500 244,125
Viacom, Inc., Class B+.............................................. 6,800 315,350
Vodafone Group PLC ADR.............................................. 7,000 265,125
Business Services -- 0.4%
Sysco Corp. ........................................................ 8,000 236,000
Chemicals -- 1.8%
Air Products & Chemicals, Inc. ..................................... 5,500 306,625
Engelhard Corp. .................................................... 10,000 428,750
Loctite Corp. ...................................................... 4,000 182,000
Minerals Technologies, Inc. ........................................ 7,500 270,000
Communication Equipment -- 0.6%
General Instrument Corp.+........................................... 10,000 383,750
Computers & Business Equipment -- 0.6%
Hewlett-Packard Co. ................................................ 5,000 372,500
Drugs -- 1.9%
Genetics Institute, Inc.+........................................... 7,000 236,250
Perrigo Co.+........................................................ 20,000 221,250
Pfizer, Inc. ....................................................... 4,500 415,688
Zeneca Group ADR.................................................... 7,500 384,375
Electrical Equipment -- 1.2%
Emerson Electric Co. ............................................... 4,600 328,900
York International Corp. ........................................... 10,000 450,000
</TABLE>
---------------------
20
<PAGE> 21
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORE EQUITY (continued)
Electronics -- 0.4%
AMP, Inc. .......................................................... 5,500 $ 232,375
Energy Services -- 1.1%
Dresser Industries, Inc. ........................................... 18,000 400,500
Schlumberger Ltd.................................................... 5,000 310,625
Energy Sources -- 1.9%
Amoco Corp. ........................................................ 5,000 333,125
Exxon Corp. ........................................................ 7,000 494,375
Unocal Corp. ....................................................... 15,000 414,375
Financial Services -- 0.5%
Federal National Mortgage Association............................... 3,500 330,313
Forest Products -- 0.7%
International Paper Co. ............................................ 5,000 428,750
Household Products -- 1.4%
Dial Corp. ......................................................... 12,000 297,000
Gillette Co. ....................................................... 5,000 223,125
Kimberly-Clark Corp. ............................................... 6,000 359,250
Insurance -- 1.4%
ACE Ltd. ........................................................... 7,000 203,000
American International Group, Inc. ................................. 3,000 342,000
American Reinsurance Corp.+......................................... 9,000 335,250
Machinery -- 1.0%
Illinois Tool Works, Inc. .......................................... 4,000 220,000
Ingersoll-Rand Co. ................................................. 4,000 153,000
Minnesota Mining & Manufacturing Co. ............................... 5,000 286,250
Medical Products -- 0.9%
Abbott Laboratories................................................. 8,500 344,250
United States Surgical Corp. ....................................... 10,000 208,750
Retail -- 2.2%
May Department Stores Co. .......................................... 8,000 333,000
Penney (J.C.), Inc. ................................................ 8,000 384,000
Talbots, Inc. ...................................................... 8,000 318,000
Wal-Mart Stores, Inc. .............................................. 14,000 374,500
Software -- 1.4%
Automatic Data Processing, Inc. .................................... 5,000 314,375
BMC Software, Inc.+................................................. 4,000 309,000
Microsoft Corp.+.................................................... 3,000 271,125
Telephone -- 1.2%
AT&T Corp. ......................................................... 5,600 297,500
MCI Communications Corp. ........................................... 8,000 176,000
US West, Inc. ...................................................... 8,000 333,000
Transportation -- 0.6%
Canadian Pacific Ltd. .............................................. 17,000 295,375
Werner Enterprises, Inc. ........................................... 5,600 112,000
------------
16,606,662
------------
TOTAL COMMON STOCK (cost: $17,651,691).............................. 23,441,493
------------
</TABLE>
---------------------
21
<PAGE> 22
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION -- 0.3%
Canadian Pacific Ltd. 4.00% (cost: $171,644)........................ 10,000 $ 173,750
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 32.3% AMOUNT
----------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 0.1%
Levitz Furniture Corp. 9.63% 2003................................... $ 100,000 74,000
------------
CONSUMER STAPLES -- 0.4%
PMI Acquisition Corp. 10.25% 2003................................... 100,000 101,000
Sweetheart Cup, Inc. 10.50% 2003.................................... 200,000 198,000
------------
299,000
------------
ENERGY -- 0.9%
Phillips Petroleum Co. 9.18% 2021................................... 250,000 272,900
Santa Fe Energy Resources, Inc. 11.00% 2004......................... 150,000 159,750
YPF Sociedad Anonima 8.00% 2004..................................... 200,000 174,000
------------
606,650
------------
FINANCE -- 0.2%
Dime Bancorp 10.50% 2005............................................ 100,000 108,000
------------
HEALTHCARE -- 0.7%
National Medical Enterprises, Inc. 9.63% 2002....................... 150,000 158,250
OrNda Healthcorp 11.38% 2004........................................ 250,000 273,125
------------
431,375
------------
INDUSTRIAL & COMMERCIAL -- 2.2%
American Standard, Inc. zero coupon 2005(1)......................... 350,000 266,000
Cabot Safety Acquisition Corp. 12.50% 2005*......................... 100,000 100,750
Cincinnati Milacron, Inc. 8.38% 2004................................ 250,000 253,125
Day International Group, Inc. 11.13% 2005*.......................... 100,000 100,125
Exide Corp. 10.75% 2002............................................. 100,000 105,750
K & F Industries, Inc. 13.75% 2001.................................. 150,000 154,875
Rohr, Inc. 11.63% 2003.............................................. 125,000 131,875
Specialty Equipment Cos., Inc. 11.38% 2003.......................... 150,000 154,125
Ucar Global Enterprises, Inc. 12.00% 2005........................... 100,000 108,000
USAir, Inc. 10.38% 2013............................................. 60,000 57,000
------------
1,431,625
------------
INFORMATION & ENTERTAINMENT -- 1.1%
Granite Broadcasting Corp. 10.38% 2005*............................. 250,000 250,000
MCI Communications Corp. 7.13% 2000................................. 90,000 92,300
Telefonica de Argentina SA 11.88% 2004.............................. 250,000 241,250
Young Broadcasting, Inc. 11.75% 2004................................ 100,000 109,000
------------
692,550
------------
INFORMATION TECHNOLOGY -- 0.3%
Digital Equipment Corp. 7.13% 2002.................................. 50,000 48,091
Digital Equipment Corp. 7.75% 2023.................................. 150,000 137,333
------------
185,424
------------
</TABLE>
---------------------
22
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 3.6%
A.K. Steel Corp. 10.75% 2004........................................ $ 150,000 $ 157,500
Arcadian Partners L.P. 10.75% 2005.................................. 250,000 251,875
Armco, Inc. 9.38% 2000.............................................. 275,000 264,000
Container Corp. of America 10.75% 2002.............................. 225,000 232,875
Domtar, Inc. 11.75% 1999............................................ 100,000 109,500
Fort Howard Corp. 8.25% 2002........................................ 75,000 71,250
Fort Howard Corp. 9.25% 2001........................................ 150,000 147,750
Kaiser Aluminum & Chemical Corp. 9.88% 2002......................... 150,000 145,875
Magma Copper Co. 12.00% 2001........................................ 100,000 110,500
Rainy River Forest Products, Inc. 10.75% 2001....................... 150,000 155,625
Rexene Corp. 11.75% 2004............................................ 100,000 107,000
South Dakota Warren Co. 12.00% 2004................................. 100,000 107,750
Stone Container Corp. 9.88% 2001.................................... 75,000 74,344
Stone Container Corp. 11.00% 1999................................... 100,000 102,000
Weirton Steel Corp. 10.88% 1999..................................... 150,000 151,500
Wheeling Pittsburgh Corp. 9.38% 2003................................ 175,000 159,250
------------
2,348,594
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.2%
Republic of Argentina 8.38% 2003.................................... 150,000 110,625
------------
REAL ESTATE -- 0.2%
Webb (Del) Corp. 9.00% 2006......................................... 150,000 134,250
------------
U.S. GOVERNMENT & AGENCIES -- 22.0%
Government National Mortgage Association 6.00% 2009................. 227,608 221,064
Government National Mortgage Association 6.50% 2008 - 2009.......... 1,429,988 1,413,900
Government National Mortgage Association 7.00% 2024................. 251,510 247,501
Government National Mortgage Association 7.50% 2022 - 2024.......... 1,440,371 1,447,573
Government National Mortgage Association 8.50% 2024................. 983,922 1,021,429
United States Treasury Bonds 6.25% 2023............................. 1,000,000 944,530
United States Treasury Bonds 9.25% 2016............................. 1,000,000 1,282,190
United States Treasury Notes 5.63% 1998............................. 500,000 496,640
United States Treasury Notes 6.25% 2003............................. 750,000 751,995
United States Treasury Notes 6.88% 1996............................. 2,000,000 2,026,560
United States Treasury Notes 7.25% 2004............................. 250,000 267,147
United States Treasury Notes 7.50% 2001............................. 1,000,000 1,073,440
United States Treasury Notes 7.75% 1999............................. 500,000 533,280
United States Treasury Notes 7.88% 1999 - 2004...................... 1,500,000 1,649,295
United States Treasury Notes 8.50% 2000............................. 750,000 825,233
------------
14,201,777
------------
UTILITIES -- 0.4%
Cleveland Electric Illuminating Co. 9.50% 2005...................... 75,000 75,208
Long Island Lighting Co. 8.20% 2023................................. 100,000 87,081
Long Island Lighting Co. 8.90% 2019................................. 100,000 91,746
------------
254,035
------------
TOTAL BONDS & NOTES (cost: $19,698,941)............................. 20,877,905
------------
</TABLE>
---------------------
23
<PAGE> 24
<TABLE>
<CAPTION>
FOREIGN SECURITIES -- 28.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.1%
Buenos Aires Embotelladora SA ADR (Consumer Staples)+............... 2,000 $ 50,250
------------
AUSTRALIA -- 1.5%
Advance Bank (Australia) (Finance).................................. 13,000 83,987
Amcor Ltd. (Materials).............................................. 25,446 187,725
Australia & New Zealand Bank Group (Finance)........................ 52,000 184,790
Broken Hill Proprietary Ltd. ADR (Materials)........................ 18,887 232,497
National Australia Bank Ltd. (Finance).............................. 8,590 67,890
Pacific Dunlop Ltd. (Consumer Discretionary)........................ 92,222 194,014
------------
950,903
------------
AUSTRIA -- 0.4%
Evn Energie-Versorgung Niederoesterreich AG (Utilities)............. 1,900 265,493
------------
BELGIUM -- 0.2%
Delhaize Le Lion (Consumer Discretionary)........................... 2,800 125,993
------------
CANADA -- 0.2%
Canadian Pacific Ltd. (Industrial & Commercial)..................... 7,000 121,625
------------
CHILE -- 0.2%
Compania De Telefonos Chile SA ADR (Utilities)...................... 1,000 81,375
Enersis SA ADR (Utilities).......................................... 2,000 59,000
------------
140,375
------------
DENMARK -- 0.5%
Tele Danmark A/S ADR (Utilities).................................... 12,500 350,000
------------
FRANCE -- 2.3%
Canal Plus (Information & Entertainment)............................ 750 102,807
Cie de St. Gobain (Materials)....................................... 2,000 241,585
Euro RSCG Worldwide SA (Information & Entertainment)................ 1,568 163,869
Renault SA (Consumer Discretionary)................................. 6,550 205,223
Societe Generale (Finance).......................................... 3,000 350,628
Technip SA (Industrial & Commercial)................................ 3,150 196,092
Total SA (Energy)................................................... 3,700 222,703
------------
1,482,907
------------
GERMANY -- 1.2%
Bayer AG (HealthCare)............................................... 750 186,565
Mannesmann AG (Industrial & Commercial)............................. 1,137 347,373
VEBA AG (Utilities)................................................. 700 275,110
------------
809,048
------------
HONG KONG -- 1.4%
Cathay Pacific Airways Ltd. (Information & Entertainment)........... 21,000 30,668
China Light & Power Co., Ltd. (Utilities)........................... 30,000 154,307
Hong Kong Telecommunications, Ltd. (Utilities)...................... 63,600 125,757
Hutchison Whampoa Ltd. (Information Technology)..................... 11,000 53,167
Sun Hung Kai Properties (Real Estate)............................... 18,000 133,177
Swire Pacific Ltd., Class A (Industrial & Commercial)............... 34,000 259,247
Wharf Holdings Ltd. (Real Estate)................................... 49,000 159,897
------------
916,220
------------
ITALY -- 0.6%
STET (Utilities).................................................... 142,000 392,697
------------
</TABLE>
---------------------
24
<PAGE> 25
<TABLE>
<CAPTION>
FOREIGN SECURITIES (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN -- 7.3%
Chichibu Onoda Cement Co., Ltd. (Materials)......................... 30,000 $ 136,629
DDI Corp. (Information Technology).................................. 20 160,462
Hitachi Ltd. (Information Technology)............................... 42,000 418,736
Home Wide Corp. (Consumer Discretionary)............................ 3,000 33,662
Kajima Corp. (Industrial & Commercial).............................. 25,000 248,363
Kokusai Electric (Information Technology)........................... 12,000 223,704
Kyocera Corp. (Information Technology).............................. 2,000 164,710
Kyoritsu Air Technology (Information Technology).................... 3,000 41,060
Minebea Co., Ltd. (Information Technology).......................... 37,000 237,485
Mitsubishi Corp. (Industrial & Commercial).......................... 17,000 193,558
Murata Manufacturing Co. (Information Technology)................... 2,000 75,748
Nippon Telegraph & Telecommunications Corp. (Information &
Entertainment).................................................... 10 83,771
NKK Corp. (Materials)............................................... 46,000 108,005
Nomura Securities International, Inc. (Finance)..................... 5,000 87,310
Orix Corp. (Industrial & Commercial)................................ 5,000 166,362
Riso Kagaku Corp. (Information Technology).......................... 1,000 69,730
Sakura Bank Ltd. (Finance).......................................... 13,000 135,744
Sankyo Co., Ltd. (Healthcare)....................................... 13,000 302,165
Sanyo Shinpan Finance Co. (Finance)................................. 2,000 146,304
Secom Co. (Industrial & Commercial)................................. 3,000 188,661
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)............... 4,000 286,473
Shimamura Co. (Consumer Discretionary).............................. 3,000 106,188
Showa Corp. (Consumer Discretionary)................................ 27,000 178,397
Sony Corp. (Information & Entertainment)............................ 5,000 240,104
Sumitomo Realty & Development Co., Ltd. (Real Estate)............... 25,000 149,254
Sumitomo Trust & Banking Co., Ltd. (Finance)........................ 6,000 72,916
TDK Corp. (Information Technology).................................. 5,000 227,715
Tokio Marine & Fire Insurance Co., Ltd. (Finance)................... 20,000 229,367
Tsutsumi Jewelry Co. (Consumer Discretionary)....................... 500 22,772
------------
4,735,355
------------
MALAYSIA -- 0.6%
Resorts World Bhd (Information & Entertainment)..................... 34,000 199,426
Tenaga Nasional Bhd (Utilities)..................................... 50,000 204,060
------------
403,486
------------
MEXICO -- 0.3%
Kimberly-Clark Corp. (Materials).................................... 15,000 172,320
------------
NETHERLANDS -- 1.5%
Elsevier NV (Information & Entertainment)........................... 23,000 271,636
Internationale Nederlanden Groep NV (Finance)....................... 5,253 290,534
Royal Dutch Petroleum Co. (Energy).................................. 2,500 305,260
Vendex International NV (Consumer Discretionary).................... 5,000 132,300
------------
999,730
------------
NEW ZEALAND -- 0.6%
Brierley Investments Ltd. (Consumer Discretionary).................. 151,000 114,073
Carter Holt Harvey Ltd. (Materials)................................. 65,000 159,045
Telecom Corp. of New Zealand Ltd. ADR (Utilities)................... 1,750 106,094
------------
379,212
------------
NORWAY -- 1.5%
Hafslund Nycomed, Series A ADR (Healthcare)......................... 10,316 242,769
Kvaerner AS (Industrial & Commercial)............................... 5,500 249,939
Orkla AS (Consumer Staples)......................................... 5,000 223,971
Saga Petroleum (Energy)............................................. 17,000 241,419
------------
958,098
------------
</TABLE>
---------------------
25
<PAGE> 26
<TABLE>
<CAPTION>
FOREIGN SECURITIES (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES -- 0.2%
Pilipino Telephone (Utilities)...................................... 160,900 $ 125,998
------------
PORTUGAL -- 0.2%
Portugal Telecom SA ADR (Utilities)................................. 6,300 120,960
------------
SINGAPORE -- 1.1%
Development Bank of Singapore (Finance)............................. 27,500 312,880
Keppel Corp. Ltd. (Industrial & Commercial)......................... 33,000 269,195
Oversea Chinese Banking Corp. Ltd. (Finance)........................ 4,000 44,365
United Overseas Bank Ltd. (Finance)................................. 9,000 85,009
------------
711,449
------------
SPAIN -- 1.5%
ARGENTARIA Corporacion Bancaria de Espana (Finance)................. 3,000 110,836
Banco Bilbao Vizcaya (Finance)...................................... 9,500 274,118
Empresa Nacional De Electricidad ADR (Utilities).................... 5,000 246,250
Repsol SA ADR (Energy).............................................. 10,000 316,250
------------
947,454
------------
SWEDEN -- 0.9%
Astra AB (Healthcare)............................................... 9,000 277,881
Pharmacia AB, Series A (Healthcare)................................. 12,500 274,202
------------
552,083
------------
SWITZERLAND -- 1.2%
Ciba-Geigy AG (Healthcare).......................................... 300 219,887
Nestle SA (Consumer Staples)........................................ 340 354,025
Schw Bankverein (Finance)........................................... 500 177,160
------------
751,072
------------
UNITED KINGDOM -- 3.2%
Abbey National PLC (Finance)........................................ 17,000 126,547
Bass PLC (Consumer Staples)......................................... 35,000 334,858
BET PLC (Industrial & Commercial)................................... 167,000 326,722
British Telecommunications PLC (Utilities).......................... 38,000 236,933
Cadbury Schweppes PLC (Consumer Staples)............................ 26,976 196,946
Redland PLC (Materials)............................................. 39,100 255,919
Royal Insurance Holdings PLC (Finance).............................. 40,000 196,596
Smith (W.H.) Group PLC (Consumer Discretionary)..................... 30,000 155,559
Tomkins PLC (Consumer Staples)...................................... 67,000 239,248
------------
2,069,328
------------
TOTAL FOREIGN SECURITIES (cost: $16,265,098)........................ 18,532,056
------------
TOTAL INVESTMENT SECURITIES (cost: $53,787,374)..................... 63,025,204
------------
</TABLE>
---------------------
26
<PAGE> 27
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 0.6% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Joint Repurchase Agreement Account (See Note 3)
(cost: $420,000).................................................. $ 420,000 $ 420,000
-----------
TOTAL INVESTMENTS --
(cost: $54,207,374) 98.2% 63,445,204
Other assets less liabilities -- 1.8 1,150,645
------ -----------
NET ASSETS -- 100.0% $64,595,849
====== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
(1) Represents a zero-coupon bond which will convert to an
interest-bearing security at a later date
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JUNE 30, 1995
---------------------------------------------------------------------------------------------------
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
JPY 192,060,000 USD 2,365,271 7/19/95 $93,106
=======
</TABLE>
JPY -- Japanese Yen
USD -- United States Dollar
See Notes to Financial Statements
---------------------
27
<PAGE> 28
---------------------
ANCHOR SERIES TRUST
MULTI-ASSET PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 55.9% SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.9%
Retail -- 4.9%
May Department Stores Co. .......................................... 50,000 $ 2,081,250
Penney (J.C.), Inc. ................................................ 45,000 2,160,000
Talbots, Inc. ...................................................... 50,000 1,987,500
Wal-Mart Stores, Inc. .............................................. 80,000 2,140,000
-------------
8,368,750
-------------
CONSUMER STAPLES -- 3.0%
Household Products -- 3.0%
Dial Corp. ......................................................... 75,000 1,856,250
Gillette Co. ....................................................... 24,000 1,071,000
Kimberly-Clark Corp. ............................................... 38,000 2,275,250
-------------
5,202,500
-------------
ENERGY -- 6.4%
Energy Services -- 5.2%
Amoco Corp. ........................................................ 30,000 1,998,750
Dresser Industries, Inc. ........................................... 105,000 2,336,250
Exxon Corp. ........................................................ 38,000 2,683,750
Schlumberger Ltd. .................................................. 30,000 1,863,750
Energy Sources -- 1.2%
Unocal Corp. ....................................................... 75,000 2,071,875
-------------
10,954,375
-------------
FINANCE -- 6.0%
Banks -- 2.9%
Crestar Financial Corp. ............................................ 38,000 1,862,000
Fleet Financial Group, Inc. ........................................ 37,000 1,373,625
Republic New York Corp. ............................................ 30,000 1,680,000
Financial Services -- 0.5%
Bancorp Hawaii, Inc. ............................................... 30,000 900,000
Insurance -- 2.6%
ACE Ltd. ........................................................... 30,000 870,000
American International Group, Inc. ................................. 15,000 1,710,000
American Reinsurance Corp.+......................................... 50,000 1,862,500
-------------
10,258,125
-------------
HEALTHCARE -- 6.7%
Drugs -- 4.0%
Johnson & Johnson Co. .............................................. 34,000 2,299,250
Pfizer, Inc. ....................................................... 25,000 2,309,375
Zeneca Group PLC ADR................................................ 45,100 2,311,375
Medical Products -- 2.7%
Abbott Laboratories................................................. 55,000 2,227,500
Perrigo Co.+........................................................ 100,000 1,106,250
United States Surgical Corp. ....................................... 60,000 1,252,500
-------------
11,506,250
-------------
</TABLE>
---------------------
28
<PAGE> 29
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 6.8%
Business Services -- 0.7%
Sysco Corp. ........................................................ 40,000 $ 1,180,000
Electrical Equipment -- 2.5%
Emerson Electric Co. ............................................... 25,000 1,787,500
York International Corp. ........................................... 55,000 2,475,000
Machinery -- 2.5%
Illinois Tool Works, Inc. .......................................... 27,000 1,485,000
Ingersoll-Rand Co. ................................................. 27,000 1,032,750
Minnesota Mining & Manufacturing Co. ............................... 30,000 1,717,500
Transportation -- 1.1%
Canadian Pacific Ltd. .............................................. 65,000 1,129,375
Werner Enterprises, Inc. ........................................... 37,700 754,000
-------------
11,561,125
-------------
INFORMATION & ENTERTAINMENT -- 6.7%
Broadcasting & Media -- 5.2%
Capital Cities/ABC, Inc. ........................................... 13,000 1,404,000
Comcast Corp. ...................................................... 75,000 1,392,188
Gannett Co., Inc. .................................................. 40,000 2,170,000
Gaylord Entertainment Co., Class A.................................. 36,225 914,681
Multimedia, Inc.+................................................... 28,000 1,085,000
Viacom, Inc.+....................................................... 40,000 1,855,000
Entertainment Products -- 0.9%
Scholastic Corp.+................................................... 30,000 1,627,500
Leisure & Tourism -- 0.6%
AMR Corp.+.......................................................... 14,000 1,044,750
-------------
11,493,119
-------------
INFORMATION TECHNOLOGY -- 6.1%
Communication Equipment -- 1.1%
General Instrument Corp.+........................................... 50,000 1,918,750
Computers & Business Equipment -- 1.1%
Hewlett-Packard Co. ................................................ 26,000 1,937,000
Electronics -- 0.8%
AMP, Inc. .......................................................... 30,000 1,267,500
Software -- 3.1%
Automatic Data Processing, Inc. .................................... 30,000 1,886,250
BMC Software, Inc. ................................................. 25,000 1,931,250
Microsoft Corp.+.................................................... 17,000 1,536,375
-------------
10,477,125
-------------
MATERIALS -- 5.6%
Chemicals -- 4.1%
Air Products & Chemicals, Inc. ..................................... 34,000 1,895,500
Engelhard Corp. .................................................... 62,000 2,658,250
Loctite Corp. ...................................................... 24,000 1,092,000
Minerals Technologies, Inc. ........................................ 36,600 1,317,600
Forest Products -- 1.5%
International Paper Co. ............................................ 30,000 2,572,500
-------------
9,535,850
-------------
U.S. GOVERNMENT & AGENCIES -- 1.1%
U.S. Government & Agencies -- 1.1%
Federal National Mortgage Association............................... 20,000 1,887,500
-------------
</TABLE>
---------------------
29
<PAGE> 30
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 2.6%
Telephone -- 2.6%
AT&T Corp. ......................................................... 30,000 $ 1,593,750
MCI Communications Corp. ........................................... 62,000 1,364,000
SBC Communications, Inc. ........................................... 33,000 1,571,625
-------------
4,529,375
-------------
TOTAL COMMON STOCK (cost: $70,705,287).............................. 95,774,094
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 41.2% AMOUNT
------------------------------------------------------------------------------------------------------
FINANCE -- 11.4%
Bank Of Boston Corp. 6.63% 2004..................................... $ 1,500,000 1,458,510
BankAmerica Corp. 6.31% 1998(1)..................................... 1,000,000 1,000,400
Bankers Trust New York Corp. 8.25% 2005............................. 1,500,000 1,602,950
Beneficial Corp. 6.50% 1999(1)...................................... 1,500,000 1,475,670
Citicorp 6.75% 2005................................................. 1,500,000 1,467,150
Daimler-Benz Vehicle Trust 5.95% 2000............................... 921,020 919,748
Dean Witter, Discover & Co. 7.86% 2004.............................. 1,000,000 1,063,660
Discover Card Trust 6.71% 2004(1)................................... 1,500,000 1,510,198
Discover Card Trust, Series D 5.50% 1998............................ 916,667 912,368
Fleet Mortgage Group, Inc. 6.50% 2000............................... 1,500,000 1,494,030
General Motors Acceptance Corp. 8.63% 1996.......................... 1,000,000 1,022,210
IBM Credit Receivables Lease Asset Master Trust 4.55% 2000.......... 993,806 979,148
ITT Hartford Group 8.20% 1998....................................... 1,000,000 1,047,500
MBNA Master Credit Card Trust 6.29% 2000(1)......................... 1,500,000 1,501,055
Nissan Auto Receivables Grantor Trust 6.45% 1999.................... 1,045,291 1,050,223
Premier Auto Trust 4.65% 1999....................................... 1,012,578 992,487
-------------
19,497,307
-------------
INDUSTRIAL & COMMERCIAL -- 1.7%
Mobil Oil Corp. 9.17% 2000.......................................... 688,250 734,769
Niagara Mohawk Power Corp. 5.88% 2002............................... 1,250,000 1,167,962
Penney (J.C.), Inc. 7.38% 2004...................................... 1,000,000 1,044,140
-------------
2,946,871
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.8%
Republic of Italy 6.88% 2023........................................ 1,500,000 1,331,460
Quebec Province Canada 8.80% 2003................................... 1,500,000 1,664,850
-------------
2,996,310
-------------
U.S. GOVERNMENT & AGENCIES -- 26.3%
Federal Farm Credit Bank 6.75% 1998................................. 8,000,000 8,026,800
Federal Home Loan Mortgage Corp. 8.50% 2001......................... 1,500,000 1,556,639
Federal National Mortgage Association 7.50% 2022-2025............... 1,063,333 1,711,038
Federal National Mortgage Association 7.50% TBA..................... 277,913 280,084
Government National Mortgage Association 6.50% TBA.................. 11,000,000 10,566,820
United States Treasury Bonds 8.13% 2019............................. 5,000,000 5,817,200
United States Treasury Notes 6.38% 2002............................. 7,000,000 7,083,090
United States Treasury Notes 6.50% 1999............................. 9,800,000 $ 9,968,462
-------------
45,010,133
-------------
TOTAL BONDS & NOTES (cost: $69,407,239)............................. 70,450,621
-------------
</TABLE>
---------------------
30
<PAGE> 31
<TABLE>
<CAPTION>
CONVERTIBLE SECURITIES -- 2.7%
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONVERTIBLE BONDS -- 0.7%
Leisure & Tourism -- 0.3%
AMR Corp. 6.13% 2024................................................ $ 400,000 416,000
Medical Products -- 0.4%
McKesson Corp. 4.50% 2004........................................... 800,000 720,000
-------------
1,136,000
-------------
<CAPTION>
SHARES
------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 2.0%
Consumer Products -- 0.8%
Ford Motor Co., Series A $4.20...................................... 15,000 1,456,875
Energy Sources -- 0.2%
Unocal Corp. $3.50*................................................. 6,000 321,000
Finance -- 0.2%
Republic New York Corp. $3.38....................................... 6,000 346,500
Real Estate Investment Trusts -- 0.8%
Security Capital Pacific Trust Series A............................. 60,000 1,335,000
-------------
3,459,375
-------------
TOTAL CONVERTIBLE SECURITIES (cost: $4,546,651)..................... 4,595,375
-------------
TOTAL INVESTMENT SECURITIES (cost: $144,659,177).................... 170,820,090
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 0.0% AMOUNT
------------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (See Note 3)
(cost: $25,000)................................................... $ 25,000 25,000
-------------
TOTAL INVESTMENTS --
(cost: $144,684,177) 99.8% 170,845,090
Other assets less liabilities -- 0.2 283,540
------ -------------
NET ASSETS -- 100.0% $171,128,630
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
(1) Variable rate security - the rate reflected is as of
June 30, 1995
TBA - Securities purchased on a forward commitment basis
with an approximately principal amount and no
definitive maturity date. The actual principal amount
and maturity date will be determined upon settlement.
See Notes to Financial Statements
---------------------
31
<PAGE> 32
---------------------
ANCHOR SERIES TRUST
CAPITAL APPRECIATION
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 92.0% SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.0%
Apparel & Textiles -- 0.8%
Tommy Hilfiger Corp.+............................................... 78,100 $ 2,186,800
Retail -- 4.2%
Baby Superstore, Inc.+.............................................. 38,300 1,804,888
Bed Bath & Beyond, Inc.+............................................ 70,000 1,697,500
Gymboree Corp.+..................................................... 100,000 2,906,250
Mercantile Stores Co., Inc. ........................................ 60,000 2,790,000
Sports Authority, Inc.+............................................. 140,500 2,862,687
-------------
14,248,125
-------------
CONSUMER STAPLES -- 0.5%
Food, Beverage & Tobacco -- 0.5%
Embotelladora Andina ADR............................................ 40,000 1,405,000
-------------
ENERGY -- 4.6%
Energy Services -- 2.1%
Input/Output, Inc.+................................................. 165,000 5,940,000
Energy Sources -- 2.5%
Unocal Corp. ....................................................... 90,000 2,486,250
Vastar Resources, Inc. ............................................. 157,600 4,865,900
-------------
13,292,150
-------------
FINANCE -- 2.7%
Financial Services -- 0.4%
Imperial Credit Industries, Inc.+................................... 101,200 1,252,350
Insurance -- 2.3%
American Reinsurance Corp.+......................................... 80,000 2,980,000
Home State Holdings, Inc.+.......................................... 107,100 1,057,613
Transatlantic Holdings, Inc. ....................................... 38,900 2,528,500
-------------
7,818,463
-------------
HEALTHCARE -- 14.5%
Drugs -- 5.7%
A.L. Pharmaceutical, Inc., Class A.................................. 125,700 2,356,875
Biogen, Inc.+....................................................... 50,000 2,225,000
Hafslund Nycomed, Series A ADR...................................... 103,878 2,444,585
Hafslund Nycomed, Series B ADR...................................... 175,000 4,046,875
Immunex Corp.+...................................................... 200,000 2,600,000
Zeneca Group PLC ADR................................................ 150,000 2,532,607
Health Services -- 6.0%
American Medical Response, Inc.+.................................... 130,000 3,640,000
Beverly Enterprises, Inc.+.......................................... 125,000 1,546,875
FHP International Corp.+............................................ 145,600 3,348,800
GranCare, Inc.+..................................................... 141,000 2,273,625
Hillhaven Corp.+.................................................... 59,200 1,672,400
</TABLE>
---------------------
32
<PAGE> 33
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Health Services (continued)
Living Centers of America, Inc.+.................................... 80,000 $ 2,170,000
Physician Corp. of America+......................................... 187,700 2,557,412
Medical Products -- 2.8%
Haemonetics Corp.................................................... 200,000 3,850,000
Heart Technology, Inc.+............................................. 216,800 4,200,500
-------------
41,465,554
-------------
INDUSTRIAL & COMMERCIAL -- 7.4%
Electrical Equipment -- 1.7%
York International Corp. ........................................... 105,000 4,725,000
Machinery -- 1.1%
Precision Castparts Corp. .......................................... 91,000 3,196,375
Transportation -- 4.6%
AMR Corp.+.......................................................... 80,000 5,970,000
Continental Airlines, Inc., Class B+................................ 124,000 3,115,500
Swift Transportation Co., Inc. ..................................... 109,500 1,834,125
Werner Enterprises, Inc. ........................................... 111,600 2,232,000
-------------
21,073,000
-------------
INFORMATION & ENTERTAINMENT -- 26.6%
Broadcasting & Media -- 23.2%
American Radio Systems Corp., Class A............................... 36,800 837,200
CBS, Inc. .......................................................... 40,000 2,680,000
Central European Media Entertainment Light, Ltd., Class A........... 160,000 2,380,000
E-Z Communications, Inc.+........................................... 145,000 2,682,500
Emmis Broadcasting Corp., Class A+.................................. 122,700 3,343,575
Evergreen Media Corp.+.............................................. 268,200 6,973,200
Gaylord Entertainment Co., Class A.................................. 138,285 3,491,696
International Cabletel, Inc.+....................................... 110,000 3,575,000
Jacor Communications, Inc.+......................................... 169,500 2,712,000
LodgeNet Entertainment Corp.+....................................... 150,000 1,350,000
Multimedia, Inc.+................................................... 34,300 1,329,125
News Corp., Ltd. ADR................................................ 220,000 4,400,000
Renaissance Communications Corp.+................................... 80,000 2,680,000
Saga Communications, Inc., Class A+................................. 125,000 2,593,750
Scholastic Corp.+................................................... 35,000 1,898,750
Scripps (E.W.) Co., Class A......................................... 75,000 2,418,750
SFX Broadcasting, Inc., Class A+.................................... 190,000 5,082,500
Valuevision International, Inc., Class A+........................... 55,600 253,675
Viacom, Inc., Class A+.............................................. 11,200 520,800
Viacom, Inc., Class B+.............................................. 94,861 4,399,179
Vodafone Group PLC ADR.............................................. 75,000 2,840,625
Westwood One, Inc.+................................................. 205,000 2,998,125
Young Broadcasting, Inc., Class A+.................................. 175,000 4,856,250
Entertainment Products -- 1.0%
Philips Electronics N.V. ADR........................................ 65,000 2,778,750
Leisure & Tourism -- 2.4%
Mikohn Gaming Corp.+................................................ 144,200 775,075
Quality Dining, Inc.+............................................... 11,300 183,625
Royal Caribbean Cruises Ltd. ....................................... 135,000 2,970,000
Tabcorp Holdings Ltd. ADR*.......................................... 150,000 3,094,035
-------------
76,098,185
-------------
</TABLE>
---------------------
33
<PAGE> 34
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 29.8%
Communication Equipment -- 12.7%
BroadBand Technologies, Inc.+....................................... 80,000 $ 1,980,000
Cabletron Systems, Inc.+............................................ 35,900 1,911,675
California Microwave, Inc.+......................................... 115,000 2,882,187
cisco Systems, Inc.+................................................ 100,000 5,056,250
General Instrument Corp.+........................................... 140,000 5,372,500
Glenayre Technologies, Inc.+........................................ 60,000 3,060,000
Mobilemedia Corp. .................................................. 179,400 3,677,700
Nokia Corp. ADR..................................................... 140,000 8,347,500
Shiva Corp. ........................................................ 60,000 2,595,000
Uunet Technologies, Inc.+........................................... 55,000 1,512,500
Computers & Business Equipment -- 1.0%
Sensormatic Electronics Corp. ...................................... 85,000 3,017,500
Electronics -- 0.7%
Cyrix Corp.+........................................................ 80,000 1,930,000
Software -- 15.4%
3do Co. ............................................................ 100,000 1,206,250
BISYS Group, Inc.+.................................................. 229,800 5,113,050
BMC Software, Inc.+................................................. 110,000 8,497,500
Cheyenne Software, Inc.+............................................ 185,000 3,422,500
Cognos, Inc. ....................................................... 150,000 4,312,500
Compuware Corp.+.................................................... 85,000 2,613,750
FTP Software, Inc.+................................................. 140,000 4,200,000
Parametric Technology Corp.+........................................ 75,000 3,731,250
Softkey International, Inc.+........................................ 165,000 5,259,375
Spectrum Holobyte, Inc.+............................................ 134,500 1,925,031
Spyglass, Inc. ..................................................... 22,100 632,613
Systems & Computer Technology Corp.+................................ 155,400 3,108,000
-------------
85,364,631
-------------
MATERIALS -- 0.7%
Metals & Minerals -- 0.7%
Quanex Corp. ....................................................... 80,000 1,980,000
-------------
REAL ESTATE -- 0.2%
Real Estate Investment Trusts -- 0.2%
Starwood Lodging Trust.............................................. 23,300 547,550
-------------
TOTAL INVESTMENT SECURITIES (cost: $209,318,733).................... 263,292,658
-------------
</TABLE>
---------------------
34
<PAGE> 35
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.3% AMOUNT VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Joint Repurchase Agreement Account (See Note 3)
(cost: $18,070,000)............................................... $18,070,000 $ 18,070,000
-------------
TOTAL INVESTMENTS --
(cost: $227,388,733) 98.3% 281,362,658
Other assets less liabilities -- 1.7 4,892,475
------ -------------
NET ASSETS -- 100.0% $286,255,133
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
See Notes to Financial Statements
---------------------
35
<PAGE> 36
---------------------
ANCHOR SERIES TRUST
CONVERTIBLE SECURITIES
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 44.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.6%
Housing -- 1.4%
Continental Homes Holding Corp. 6.88% 2002.......................... $ 500,000 $ 455,000
Retail -- 2.2%
Rite Aid zero coupon 2006........................................... 1,500,000 720,000
------------
1,175,000
------------
ENERGY -- 2.8%
Energy Sources -- 2.8%
Pennzoil Co. 6.50% 2003............................................. 750,000 888,750
------------
FINANCE -- 12.6%
Banks -- 7.1%
Banco Nacional de Mexico 7.00% 1999................................. 120,000 84,300
Banco Nacional de Mexico SA 7.00% 1999*............................. 600,000 431,250
Bangkok Bank Public Ltd. 3.25% 2004*................................ 440,000 446,600
Fifth Third Bancorp. 4.25% 1998..................................... 1,000,000 1,005,000
J.G. Summit, Inc. 3.50% 2003*....................................... 470,000 334,875
Financial Services -- 2.7%
Legg Mason, Inc. 5.25% 2003......................................... 800,000 883,000
Insurance -- 2.8%
Royal Insurance Holding Corp. 7.25% 2007............................ 500,000 876,809
Swiss Refinance Bermaud Ltd. zero coupon 1999*(1)................... 35,000 31,588
------------
4,093,422
------------
HEALTHCARE -- 4.6%
Health Services -- 1.8%
Pharmaceutical Marketing Services 6.25% 2003*....................... 880,000 589,600
Medical Products -- 2.8%
McKesson Corp. 4.50% 2004........................................... 1,000,000 900,000
------------
1,489,600
------------
INDUSTRIAL & COMMERCIAL -- 4.5%
Business Services -- 4.5%
Empresas ICA Sociedad Controladora 5.00% 2004....................... 750,000 405,000
Fisher Scientific International Co., Inc. 4.75% 2003(2)............. 1,000,000 1,060,000
------------
1,465,000
------------
INFORMATION & ENTERTAINMENT -- 0.7%
Broadcasting & Media -- 0.7%
International Cabletel, Inc. 7.25% 2005*............................ 225,000 238,500
------------
</TABLE>
---------------------
36
<PAGE> 37
<TABLE>
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 8.0%
Chemicals -- 2.6%
RPM, Inc. zero coupon 2012.......................................... $2,000,000 $ 835,000
Forest Products -- 5.4%
Cemex SA 4.25% 1997................................................. 200,000 155,000
Cemex SA 4.25% 1997*................................................ 600,000 457,500
International Paper Co. 5.75% 2002.................................. 1,000,000 1,158,750
------------
2,606,250
------------
REAL ESTATE -- 3.9%
Real Estate Companies -- 2.5%
Hong Kong Land Co. 4.00% 2001....................................... 500,000 412,187
Liberty Property Ltd. 8.00% 2001.................................... 400,000 390,500
Real Estate Investment Trusts -- 1.4%
IRT Property Co. 7.30% 2003......................................... 500,000 462,500
------------
1,265,187
------------
SERVICES -- 3.4%
Transportation -- 3.4%
AMR Corp. 6.13% 2024................................................ 1,050,000 1,092,000
------------
TOTAL CONVERTIBLE BONDS (cost: $15,186,768)......................... 14,313,709
------------
<CAPTION>
CONVERTIBLE PREFERRED STOCK -- 48.0% SHARES
----------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 8.6%
Automotive -- 8.6%
Chrysler Corp. $4.63................................................ 19,168 917,668
Ford Motor Co., Series A $4.20...................................... 10,000 971,250
General Motors Corp., Series C $3.25................................ 14,500 913,500
------------
2,802,418
------------
CONSUMER STAPLES -- 3.8%
Food, Beverage & Tobacco -- 3.8%
RJR Nabisco Holdings, Series C 9.25%................................ 200,000 1,225,000
------------
ENERGY -- 9.7%
Energy Services -- 3.8%
Occidental Petroleum Corp. $3.88*................................... 21,000 1,215,375
Energy Sources -- 5.9%
Ashland Oil Co. $3.13............................................... 17,600 1,014,200
Unocal Corp. 7.00%*................................................. 17,000 909,500
------------
3,139,075
------------
FINANCE -- 9.9%
Banks -- 3.2%
Ahmanson (H.F.) & Co. 6.00%......................................... 20,000 1,022,500
Insurance -- 6.7%
Allstate Corp. $2.30................................................ 18,600 757,950
Conseco, Inc. 6.50%................................................. 10,000 436,250
Kemper Corp., Series E 5.75%*....................................... 20,000 982,500
------------
2,176,700
------------
</TABLE>
---------------------
37
<PAGE> 38
<TABLE>
<CAPTION>
CONVERTIBLE PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 9.8%
Health Services -- 6.5%
Beverly Enterprises, Inc. 5.50%..................................... 20,000 $ 1,045,000
FHP International Corp., Series A 5.00%............................. 45,000 1,068,750
Medical Products -- 3.3%
US Surgical Corp. 9.76%............................................. 42,000 1,071,000
------------
3,184,750
------------
MATERIALS -- 2.6%
Metals & Minerals -- 2.6%
Magma Copper Co., Series E 6.00%.................................... 13,500 842,063
------------
REAL ESTATE -- 3.6%
Real Estate Investment Trusts -- 3.6%
Security Capital Pacific Trust Series A 7.00%....................... 53,000 1,179,250
------------
TOTAL CONVERTIBLE PREFERRED STOCK (cost: $15,378,977)............... 15,571,756
------------
TOTAL INVESTMENT SECURITIES (cost: $30,565,745)..................... 29,885,465
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 11.0% AMOUNT
----------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (See Note 3)
(cost: $3,565,000)................................................ $3,565,000 3,565,000
------------
TOTAL INVESTMENTS --
(cost: $34,130,745) 103.1% 33,450,465
Liabilities in excess of other assets -- (3.1) (1,010,484)
------ ------------
NET ASSETS -- 100.0% $32,439,981
====== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Security will convert to 6.75% beginning 3/01/96
See Notes to Financial Statements
---------------------
38
<PAGE> 39
---------------------
ANCHOR SERIES TRUST
FOREIGN SECURITIES PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 96.6% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.5%
Buenos Aires Embotelladora SA ADR (Consumer Staples)+............... 6,000 $ 150,750
YPF Sociedad Anonima ADR (Energy)................................... 9,000 169,875
------------
320,625
------------
AUSTRALIA -- 4.6%
Advance Bank (Australia) (Finance).................................. 30,000 193,817
Amcor Ltd. (Materials).............................................. 93,964 693,210
Australia & New Zealand Bank Group (Finance)........................ 79,000 280,739
Broken Hill Proprietary Ltd. ADR (Materials)........................ 71,931 885,462
National Australia Bank Ltd. (Finance).............................. 42,399 335,094
Pacific Dunlop Ltd. (Consumer Discretionary)........................ 152,007 319,787
------------
2,708,109
------------
AUSTRIA -- 1.8%
EVN Energie-Versorgung Niederoesterreich AG (Utilities)............. 7,400 1,034,025
------------
BELGIUM -- 0.7%
Delhaize Le Lion SA (Consumer Discretionary)........................ 9,000 404,978
------------
CANADA -- 2.5%
Canadian Pacific Ltd. (Industrial & Commercial)*.................... 85,000 1,476,875
------------
CHILE -- 0.9%
Compania de Telefonos Chile SA ADR (Utilities)...................... 4,000 325,500
Enersis SA ADR (Utilities).......................................... 6,000 177,000
------------
502,500
------------
DENMARK -- 2.2%
Tele Danmark A/S ADR (Utilities).................................... 46,000 1,288,000
------------
FRANCE -- 8.8%
Canal Plus SA (Information & Entertainment)......................... 750 102,808
Cie de St. Gobain (Materials)....................................... 7,874 951,119
Euro RSCG Worldwide SA (Information & Entertainment)................ 4,083 426,706
Groupe Danone (Consumer Staples)*................................... 2,033 341,955
Renault SA (Consumer Discretionary)................................. 22,600 708,099
Societe Generale (Finance).......................................... 8,800 1,028,508
Technip SA (Industrial & Commercial)*............................... 10,100 628,739
Total SA (Energy)................................................... 11,500 692,186
Ugine SA (Materials)*............................................... 3,400 238,987
------------
5,119,107
------------
GERMANY -- 4.6%
Bayer AG (Healthcare)............................................... 2,600 646,757
Mannesmann AG (Industrial & Commercial)............................. 3,600 1,099,863
VEBA AG (Utilities)................................................. 2,400 943,235
------------
2,689,855
------------
</TABLE>
---------------------
39
<PAGE> 40
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 3.9%
Cathay Pacific Airways Ltd. (Information & Entertainment)........... 226,000 $ 330,042
Hong Kong Telecommunications, Ltd. (Utilities)...................... 235,000 464,667
Hutchison Whampoa (Information Technology).......................... 150,000 725,012
Swire Pacific Ltd., Class A (Industrial & Commercial)............... 100,000 762,491
------------
2,282,212
------------
INDIA -- 0.4%
ITC Ltd. GDR (Consumer Staples)*.................................... 20,000 154,138
Reliance Industries GDS (Materials)*................................ 5,000 88,100
------------
242,238
------------
ITALY -- 2.2%
STET (Utilities).................................................... 464,000 1,283,177
------------
JAPAN -- 24.4%
Chichibu Onoda Cement Co., Ltd. (Materials)......................... 120,000 546,516
DDI Corp. (Information Technology).................................. 90 722,081
Hitachi Ltd. (Information Technology)............................... 75,000 747,744
Home Wide Corp. (Consumer Discretionary)............................ 11,000 123,426
Ito-Yokado Co., Ltd. (Consumer Discretionary)....................... 15,000 791,104
Kawasaki Heavy Industries Ltd. (Industrial & Commercial)............ 82,000 302,826
Kyocera Corp. (Information Technology).............................. 8,000 658,840
Kyoritsu Air Technology (Information Technology).................... 7,000 95,806
Mabuchi Motor Co., Ltd. (Industrial & Commercial)................... 6,000 413,427
Minebea Co., Ltd. (Information Technology).......................... 91,000 584,084
Mitsubishi Corp. (Industrial & Commercial).......................... 48,000 546,516
Mitsui Petrochemical (Materials).................................... 40,000 302,991
Murata Manufacturing Co. (Information Technology)................... 8,000 302,991
Nihon Jumbo Co. (Materials)......................................... 6,000 169,194
Nippon Telegraph & Telecommunications Corp. (Information &
Entertainment)*................................................... 80 670,167
NKK Corp. (Materials)............................................... 89,000 208,967
Nomura Securities International, Inc. (Finance)..................... 29,000 506,401
Orix Corp. (Industrial & Commercial)................................ 10,000 332,724
Riso Kagaku Corp. (Information Technology).......................... 2,000 139,461
Sankyo Co., Ltd. (Healthcare)....................................... 33,000 767,034
Sanyo Shinpan Finance Co. (Finance)................................. 8,500 621,792
Secom Co. (Industrial & Commercial)................................. 10,000 628,872
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)............... 7,000 501,327
Shimamura Co. (Consumer Discretionary).............................. 17,000 601,734
Shohkoh Fund & Co. (Finance)........................................ 1,000 179,340
Showa Corp. (Consumer Discretionary)................................ 30,000 198,218
Sony Corp. (Information & Entertainment)............................ 16,000 768,332
Sumitomo Realty & Development Co., Ltd. (Real Estate)............... 88,000 525,373
Sumitomo Trust & Banking Co., Ltd. (Finance)........................ 10,000 121,527
TDK Corp. (Information Technology).................................. 11,000 500,973
Tokio Marine & Fire Insurance Co., Ltd. (Finance)................... 50,000 573,418
Tsutsumi Jewelry Co. (Consumer Discretionary)....................... 2,400 109,303
------------
14,262,509
------------
MALAYSIA -- 1.9%
Resorts World Bhd (Information & Entertainment)..................... 73,000 428,179
Sime Darby Bhd (Consumer Discretionary)............................. 253,000 705,660
------------
1,133,839
------------
MEXICO -- 0.6%
Kimberly-Clark Corp. (Materials).................................... 33,000 379,104
------------
</TABLE>
---------------------
40
<PAGE> 41
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS -- 5.9%
Elsevier NV (Information & Entertainment)........................... 80,000 $ 944,821
Internationale Nederlanden Groep NV (Finance)....................... 21,406 1,183,927
Unilever NV (Consumer Staples)...................................... 7,000 910,745
Vendex International NV (Consumer Discretionary).................... 16,000 423,362
------------
3,462,855
------------
NEW ZEALAND -- 1.9%
Brierley Investments Ltd. (Consumer Discretionary).................. 833,000 629,288
Carter Holt Harvey Ltd. (Materials)................................. 189,000 462,455
------------
1,091,743
------------
NORWAY -- 4.5%
Hafslund Nycomed, Series A ADR (Healthcare)......................... 30,946 728,259
Kvaerner AS (Industrial & Commercial)............................... 15,000 681,652
Orkla AS (Consumer Staples)......................................... 12,000 537,532
Saga Petroleum (Energy)............................................. 47,000 667,451
------------
2,614,894
------------
PHILIPPINES -- 0.3%
C + P Homes, Inc. (Industrial & Commercial)*........................ 300,500 150,921
------------
PORTUGAL -- 0.6%
Portugal Telecom SA ADR (Utilities)................................. 19,800 380,160
------------
SINGAPORE -- 3.6%
Development Bank of Singapore (Finance)............................. 56,250 639,982
Keppel Corp. Ltd. (Industrial & Commercial)......................... 106,000 864,687
Oversea Chinese Banking Corp. Ltd. (Finance)........................ 35,000 388,193
United Overseas Bank Ltd. (Finance)................................. 20,000 188,909
------------
2,081,771
------------
SPAIN -- 4.5%
Banco Bilbao Vizcaya (Finance)...................................... 32,000 923,344
Empresa Nacional de Electricidad ADR (Utilities).................... 7,500 369,375
Iberdrola SA (Utilities)............................................ 91,000 685,176
Repsol SA ADR (Energy).............................................. 20,000 632,500
------------
2,610,395
------------
SWEDEN -- 1.7%
Pharmacia AB, Series A (Healthcare)................................. 45,000 987,127
------------
SWITZERLAND -- 3.6%
Ciba-Geigy AG (Healthcare).......................................... 1,350 989,492
Nestle SA (Consumer Staples)........................................ 1,050 1,093,313
------------
2,082,805
------------
UNITED KINGDOM -- 10.0%
Abbey National PLC (Finance)........................................ 35,000 260,538
Bass PLC (Consumer Staples)......................................... 89,500 856,279
BET PLC (Industrial & Commercial)................................... 513,000 1,003,642
British Telecommunications PLC (Utilities).......................... 102,000 635,979
Cadbury Schweppes PLC (Consumer Staples)............................ 130,470 952,533
Redland PLC (Materials)............................................. 139,400 912,408
Royal Insurance Holdings PLC (Finance).............................. 80,000 393,192
Smith (W.H.) Group PLC (Consumer Discretionary)..................... 68,000 352,601
Tomkins PLC (Consumer Staples)...................................... 139,000 496,350
------------
5,863,522
------------
TOTAL INVESTMENT SECURITIES (cost: $53,160,088)..................... 56,453,346
------------
</TABLE>
---------------------
41
<PAGE> 42
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Joint Repurchase Agreement Account (See Note 3)
(cost: $1,845,000)................................................ $1,845,000 $ 1,845,000
-----------
TOTAL INVESTMENTS --
(cost: $55,005,088) 99.7% 58,298,346
Other assets less liabilities -- 0.3 158,828
------ -----------
NET ASSETS -- 100.0% $58,457,174
====== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
GDS - Global Depositary Shares
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
JPY 480,150,000 USD 5,913,177 7/19/95 $232,764
--------
<CAPTION>
GROSS
UNREALIZED
DEPRECIATION
----------------------------------------------------------------------------------------------------
JPY 195,610,000 USD 2,285,030 8/23/95 $(39,638)
--------
Net Appreciation............................................................ $193,126
========
</TABLE>
JPY -- Japanese Yen
USD -- United States Dollar
See Notes to Financial Statements
---------------------
42
<PAGE> 43
---------------------
ANCHOR SERIES TRUST
NATURAL RESOURCES PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 96.0% SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 22.3%
Energy Services -- 1.1%
Santa Fe Energy Resources, Inc...................................... 30,000 $ 285,000
Energy Sources -- 21.2%
Amerada Hess Corp................................................... 17,390 849,936
Amoco Corp.......................................................... 9,000 599,625
Canadian Natural Resources Ltd. ADR................................. 30,000 354,933
Exxon Corp.......................................................... 10,000 706,250
Home Oil Co. ADR.................................................... 23,800 306,425
Northstar Energy Corp............................................... 30,000 242,992
PanCanadian Petroleum Ltd. ADR...................................... 20,000 684,383
Poco Petroleum Ltd. ADR+............................................ 40,000 276,666
Talisman Energy, Inc................................................ 27,000 503,731
Unocal Corp......................................................... 29,020 801,678
------------
5,611,619
------------
INDUSTRIAL & COMMERCIAL -- 2.1%
Transportation -- 2.1%
Canadian Pacific Ltd. ADR........................................... 30,000 521,250
------------
MATERIALS -- 71.6%
Forest Products -- 23.3%
Boise Cascade Corp.................................................. 28,500 1,154,250
Bowater, Inc........................................................ 7,000 314,125
International Paper Co.............................................. 10,000 857,500
Longview Fibre Co................................................... 30,000 510,000
Rayonier, Inc....................................................... 10,000 355,000
Temple-Inland, Inc.................................................. 14,500 690,563
Weyerhaeuser Co..................................................... 30,000 1,413,750
Willamette Industries, Inc.......................................... 10,000 555,000
Metals & Minerals -- 48.3%
Agnico Eagle Mines Ltd.............................................. 16,000 212,000
Alcan Aluminum Ltd.................................................. 20,000 605,000
Alcan Australia..................................................... 144,000 259,957
Alumax, Inc.+....................................................... 9,200 286,350
Aluminum Co. of America............................................. 13,600 681,700
Barrick Gold Corp................................................... 29,800 752,450
Commonwealth Aluminum Corp.......................................... 9,700 183,694
Dominion Mining Ltd. ADR............................................ 698,400 129,057
Easco, Inc.......................................................... 16,000 196,000
Freeport McMoRan Copper & Gold...................................... 36,700 756,937
Hecla Mining Co..................................................... 17,300 179,488
Homestake Mining Co................................................. 19,685 324,802
J & L Specialty Steel, Inc.......................................... 23,600 454,300
Newcrest Mining Ltd. ADR............................................ 90,000 381,876
Newmont Gold Co..................................................... 22,600 909,650
Newmont Mining Corp................................................. 10,150 425,031
Noranda, Inc........................................................ 30,000 589,734
</TABLE>
---------------------
43
<PAGE> 44
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MATERIALS (continued)
Metals & Minerals (continued)
North Flinders Mines Ltd............................................ 66,400 $ 365,271
Pegasus Gold, Inc................................................... 10,000 101,250
Phelps Dodge Corp................................................... 12,000 708,000
Placer Dome, Inc.................................................... 20,000 522,500
Poseidon Gold Ltd. ADR.............................................. 157,405 317,719
RTZ Corp. PLC....................................................... 20,000 260,697
Santa Fe Pacific Gold Corp.......................................... 64,000 776,000
Schnitzer Steel Industries, Inc..................................... 12,400 285,200
Sons Of Gwalia Ltd. ADR............................................. 133,000 614,428
Western Mining Corp. Holdings Ltd. ADS.............................. 160,000 881,308
------------
18,010,587
------------
TOTAL INVESTMENT SECURITIES (cost: $21,307,337)..................... 24,143,456
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.8% AMOUNT
--------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (See Note 3)
(cost: $965,000).................................................. $965,000 965,000
------------
TOTAL INVESTMENTS --
(cost: $22,272,337) 99.8% 25,108,456
Other assets less liabilities -- 0.2 50,226
------ ------------
NET ASSETS -- 100.0% $25,158,682
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR - American Depositary Receipts
ADS - American Depositary Shares
See Notes to Financial Statements
---------------------
44
<PAGE> 45
---------------------
ANCHOR SERIES TRUST
TARGET '98 PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 99.6% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCE -- 17.5%
American General Corp. 9.70% 1998................................... $ 250,000 $ 269,680
British Gas Finance 8.75% 1998...................................... 425,000 450,912
Household Finance Corp. 9.80% 1998.................................. 500,000 541,965
International Lease Finance Corp. 7.50% 1999........................ 250,000 258,635
Japan Financial Corp. 9.25% 1998.................................... 300,000 325,395
Morgan (J.P.) & Co., Inc. zero coupon 1998.......................... 450,000 378,248
United Virginia Bankshares Inc. 8.63% 1998.......................... 200,000 210,828
------------
2,435,663
------------
FOREIGN BOND -- 0.8%
Quebec Hydroelectric 9.55% 1998..................................... 100,000 106,958
------------
INDUSTRIAL & COMMERCIAL -- 2.8%
Sears, Roebuck and Co. 7.75% 1999................................... 370,000 384,486
------------
SUPRANATIONALS -- 3.3%
International Bank for Reconstruction & Development zero coupon 1998.. 550,000 465,028
------------
U.S. GOVERNMENT & AGENCIES -- 69.7%
Federal Judiciary Office Building zero coupon 1998.................. 1,000,000 827,500
Federal National Mortgage Association zero coupon 1998.............. 2,000,000 1,655,978
Financing Corp. Strip zero coupon 1998.............................. 900,000 763,533
Government Trust Certificates Series 3D zero coupon 1998............ 1,500,000 1,227,285
Government Trust Certificates Series T zero coupon 1998............. 2,600,000 2,127,294
Tennessee Valley Authority zero coupon 1998......................... 1,000,000 805,240
Treasury Investment Growth Receipts zero coupon 1998................ 1,000,000 819,770
Treasury Obligations zero coupon 1998............................... 1,008,000 813,133
United States Treasury Note Strip zero coupon 1998.................. 800,000 657,112
------------
9,696,845
------------
UTILITIES -- 5.5%
Chesapeake & Potomac Telephone Co. 4.38% 1998....................... 125,000 119,261
Michigan Bell Telephone Co. 9.25% 1998.............................. 300,000 326,304
Virginia Electric & Power Co. 9.38% 1998............................ 300,000 323,019
------------
768,584
------------
TOTAL INVESTMENT SECURITIES (cost: $13,164,109)..................... 13,857,564
------------
<CAPTION>
REPURCHASE AGREEMENT -- 0.2%
----------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (See Note 3)
(cost: $35,000)................................................... 35,000 35,000
------------
TOTAL INVESTMENTS --
(cost: $13,199,109) 99.8% 13,892,564
Other assets less liabilities -- 0.2 26,579
------ ------------
NET ASSETS -- 100.0% $13,919,143
====== =============
</TABLE>
See Notes to Financial Statements
---------------------
45
<PAGE> 46
---------------------
ANCHOR SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT & FIXED
MONEY MARKET QUALITY BOND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities at value*............................ $ -- $200,523,875 $26,686,673 $266,482,182
Short-term securities at amortized cost.................... 126,166,604 -- -- --
Repurchase agreements...................................... 2,735,000 2,635,000 915,000 11,370,000
Cash....................................................... 125 822 3,642 4,054
Foreign currency........................................... -- -- -- --
Receivables for --
Fund shares sold......................................... 92,701 236,723 284 334,508
Dividends and interest................................... 76,954 2,549,032 432,366 234,979
Sales of investments..................................... -- 25,301,930 26,517 344,426
Foreign currency contracts............................... -- -- -- --
Prepaid expenses........................................... 18,327 40,095 8,275 35,666
Unrealized appreciation of foreign currency contracts...... -- -- -- --
-----------------------------------------------------------
Total assets...................................... 129,089,711 231,287,477 28,072,757 278,805,815
-----------------------------------------------------------
LIABILITIES:
Payables for --
Purchases of investments................................ 3,000,000 24,288,889 -- 920,350
Fund shares redeemed..................................... 594,830 642,551 5,595 1,434,426
Management fees.......................................... 49,491 108,093 14,406 167,943
Foreign currency contracts............................... -- -- -- --
Other accrued expenses..................................... 49,086 55,077 23,020 70,631
Unrealized depreciation of foreign currency contracts...... -- -- -- --
-----------------------------------------------------------
Total liabilities................................. 3,693,407 25,094,610 43,021 2,593,350
-----------------------------------------------------------
NET ASSETS:................................................ $125,396,304 $206,192,867 $28,029,736 $276,212,465
===========================================================
Shares of beneficial interest outstanding (unlimited shares
authorized).............................................. 125,396,304 14,340,683 1,952,108 13,258,689
Net asset value per share.................................. $ 1.00 $ 14.38 $ 14.36 $ 20.83
===========================================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $125,396,304 $183,315,042 $26,871,148 $188,235,521
Accumulated undistributed net investment income............ -- 23,274,778 3,112,717 1,244,258
Accumulated undistributed net realized gain (loss) on
investments, futures contracts, options contracts and
foreign currency......................................... -- (1,325,604) (3,165,558) 47,225,437
Unrealized appreciation/depreciation on investments........ -- 928,651 1,211,429 39,506,579
Unrealized foreign exchange gain (loss) on other assets and
liabilities.............................................. -- -- -- 670
-----------------------------------------------------------
$125,396,304 $206,192,867 $28,029,736 $276,212,465
===========================================================
---------------
*Cost
Investment securities..................................... $ -- $199,595,224 $25,475,244 $226,975,603
===========================================================
</TABLE>
See Notes to Financial Statements
---------------------
46
<PAGE> 47
<TABLE>
<CAPTION>
STRATEGIC CAPITAL CONVERTIBLE FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION SECURITIES SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$44,272,351 $63,025,204 $170,820,090 $263,292,658 $29,885,465 $56,453,346 $24,143,456 $13,857,564
-- -- -- -- -- -- -- --
4,490,000 420,000 25,000 18,070,000 3,565,000 1,845,000 965,000 35,000
3,050 489 4,075 932 504 930 2,300 2,887
-- 212,662 -- -- -- 9,827 60 --
1,601 6,393 20,298 841,302 2,325 16,747 69,093 50
1,083,688 527,296 1,068,667 185,586 330,179 442,904 41,109 55,288
378,057 828,099 10,516,187 9,334,965 -- -- -- --
-- 221,123 -- -- -- 338,807 -- --
8,616 13,166 27,112 5,744 3,152 3,759 1,407 759
-- 93,106 -- -- -- 232,764 -- --
----------------------------------------------------------------------------------------------------------------
50,237,363 65,347,538 182,481,429 291,731,187 33,786,625 59,344,084 25,222,425 13,951,548
----------------------------------------------------------------------------------------------------------------
648,311 365,903 10,687,111 4,911,039 1,290,072 338,807 -- --
11,570 44,900 452,109 343,711 8,959 18,526 32,306 5,544
29,333 53,400 141,265 156,068 18,671 44,383 15,405 9,120
-- 222,219 -- -- -- 339,005 -- --
32,490 65,267 72,314 65,236 28,942 106,551 16,032 17,741
-- -- -- -- -- 39,638 -- --
----------------------------------------------------------------------------------------------------------------
721,704 751,689 11,352,799 5,476,054 1,346,644 886,910 63,743 32,405
----------------------------------------------------------------------------------------------------------------
$49,515,659 $64,595,849 $171,128,630 $286,255,133 $32,439,981 $58,457,174 $25,158,682 $13,919,143
================================================================================================================
5,701,204 5,103,277 12,650,265 13,607,057 2,575,228 5,407,373 1,699,992 1,039,934
$ 8.69 $ 12.66 $ 13.53 $ 21.04 $ 12.60 $ 10.81 $ 14.80 $ 13.38
================================================================================================================
$56,770,233 $43,934,324 $118,893,656 $230,026,111 $30,237,464 $60,738,090 $21,112,417 $11,568,023
7,700,205 2,065,153 8,723,774 563,440 3,001,318 684,904 524,586 1,908,221
(15,016,758) 9,263,019 17,350,285 1,691,645 (118,506) (6,463,955) 685,502 (250,556)
61,979 9,237,830 26,160,913 53,973,925 (680,280) 3,293,258 2,836,119 693,455
-- 95,523 2 12 (15) 204,877 58 --
----------------------------------------------------------------------------------------------------------------
$49,515,659 $64,595,849 $171,128,630 $286,255,133 $32,439,981 $58,457,174 $25,158,682 $13,919,143
================================================================================================================
$44,210,372 $53,787,374 $144,659,177 $209,318,733 $30,565,745 $53,160,088 $21,307,337 $13,164,109
================================================================================================================
</TABLE>
---------------------
47
<PAGE> 48
---------------------
ANCHOR SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT
MONEY & QUALITY FIXED
MARKET BOND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest..................................................... $3,763,412 $ 8,274,995 $1,061,461 $ 346,282
Dividends*................................................... -- -- -- 1,388,001
-----------------------------------------------------
Total income.......................................... 3,763,412 8,274,995 1,061,461 1,734,283
-----------------------------------------------------
Expenses:
Investment management fees................................... 304,789 676,557 88,130 953,968
Custodian fees............................................... 26,370 55,985 17,870 57,820
Audit and tax consulting fees................................ 12,705 20,800 5,305 23,995
Reports to investors......................................... 5,340 18,505 1,070 23,620
Trustees' fees............................................... 5,169 9,371 884 9,867
Insurance expense............................................ 1,760 3,455 451 3,665
Legal fees................................................... 905 1,645 -- 1,675
Other expenses............................................... 2,534 3,548 1,260 3,528
-----------------------------------------------------
Total expenses........................................ 359,572 789,866 114,970 1,078,138
-----------------------------------------------------
Net investment income.......................................... 3,403,840 7,485,129 946,491 656,145
-----------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on investments........................ -- 6,531,956 (147,129) 2,146,441
Net realized foreign exchange gain (loss) on other assets and
liabilities.................................................. -- -- -- 2,860
Net realized gain on futures contracts......................... -- -- -- --
Change in unrealized appreciation/depreciation of
investments.................................................. -- 10,325,423 2,244,614 32,475,527
Change in unrealized foreign exchange gain (loss) on other
assets and liabilities....................................... -- -- -- 670
Change in unrealized appreciation/depreciation on futures
contracts.................................................... -- -- -- --
-----------------------------------------------------
Net realized and unrealized gain on investments and
foreign currencies........................................... -- 16,857,379 2,097,485 34,625,498
-----------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $3,403,840 $24,342,508 $3,043,976 $35,281,643
=====================================================
</TABLE>
---------------
*Net of foreign withholding taxes of $37,512; $41,054; $11,632; $63,877;
$120,822 and $4,867 on Growth, Strategic Multi-Asset, Multi-Asset, Capital
Appreciation, Foreign Securities and Natural Resources Portfolios,
respectively.
See Notes to Financial Statements
---------------------
48
<PAGE> 49
<TABLE>
<CAPTION>
STRATEGIC CAPITAL CONVERTIBLE FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION SECURITIES SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$2,539,807 $ 962,760 $ 2,755,202 $ 863,601 $ 591,924 $ 105,325 $ 60,250 $ 706,464
32,974 430,978 971,879 678,942 462,521 769,063 226,565 --
---------------------------------------------------------------------------------------------------------
2,572,781 1,393,738 3,727,081 1,542,543 1,054,445 874,388 286,815 706,464
---------------------------------------------------------------------------------------------------------
174,104 317,916 828,844 860,981 115,628 270,959 92,342 57,112
24,485 64,415 41,260 51,620 17,675 89,770 18,485 12,660
6,750 8,020 16,165 22,785 5,650 7,830 4,440 4,400
1,605 2,490 6,585 27,135 1,605 3,025 2,765 535
2,368 2,608 6,545 9,326 964 2,986 1,158 946
691 989 2,492 2,949 568 1,207 322 281
-- 370 1,110 1,480 -- 691 -- --
1,539 1,646 2,806 2,827 1,329 1,650 1,117 1,124
---------------------------------------------------------------------------------------------------------
211,542 398,454 905,807 979,103 143,419 378,118 120,629 77,058
---------------------------------------------------------------------------------------------------------
2,361,239 995,284 2,821,274 563,440 911,026 496,270 166,186 629,406
---------------------------------------------------------------------------------------------------------
(985,738) 730,503 4,807,542 (3,370,816) (757,498) (1,264,355) 610,447 (220,133)
-- (40,953) 38 1,242 (19,870) 281,545 (5,470) --
-- -- -- 59,620 -- -- -- --
3,455,635 5,582,563 16,534,766 49,214,834 2,674,032 1,590,847 2,012,957 1,329,763
-- 47,757 22 19 (2) 60,961 131 --
-- -- -- 96,925 -- -- -- --
---------------------------------------------------------------------------------------------------------
2,469,897 6,319,870 21,342,368 46,001,824 1,896,662 668,998 2,618,065 1,109,630
---------------------------------------------------------------------------------------------------------
$4,831,136 $7,315,154 $24,163,642 $46,565,264 $2,807,688 $ 1,165,268 $2,784,251 $1,739,036
=========================================================================================================
</TABLE>
---------------------
49
<PAGE> 50
---------------------
ANCHOR SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT & FIXED
MONEY MARKET QUALITY BOND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................... $ 3,403,840 $ 7,485,129 $ 946,491 $ 656,145
Net realized gain (loss) on investments.................. -- 6,531,956 (147,129) 2,146,441
Net realized foreign exchange gain (loss) on other assets
and liabilities........................................ -- -- -- 2,860
Net realized gain on futures contracts................... -- -- -- --
Change in unrealized appreciation/depreciation of
investments............................................ -- 10,325,423 2,244,614 32,475,527
Change in unrealized foreign exchange gain (loss) on
other assets and liabilities........................... -- -- -- 670
Change in unrealized appreciation/depreciation on futures
contracts.............................................. -- -- -- --
-----------------------------------------------------------
Net increase in net assets resulting from operations..... 3,403,840 24,342,508 3,043,976 35,281,643
-----------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO SHAREHOLDERS:
Dividends from net investment income..................... (3,403,840) -- -- --
-----------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold................................ 105,476,040 28,610,742 1,571,446 50,437,598
Proceeds from shares issued for reinvestment of dividends
and distributions...................................... 3,403,840 -- -- --
Cost of shares repurchased............................... (109,487,993) (79,290,619) (5,167,784) (55,655,803)
-----------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions............................. (608,113) (50,679,877) (3,596,338) (5,218,205)
-----------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................. (608,113) (26,337,369) (552,362) 30,063,438
NET ASSETS:
Beginning of period...................................... 126,004,417 232,530,236 28,582,098 246,149,027
-----------------------------------------------------------
End of period............................................ $ 125,396,304 $206,192,867 $28,029,736 $276,212,465
===========================================================
---------------
Undistributed net investment income...................... $ -- $ 23,274,778 $ 3,112,717 $ 1,244,258
===========================================================
Shares issued and repurchased:
Sold..................................................... 105,476,040 2,088,869 115,862 2,610,100
Issued in reinvestment of dividends and distributions.... 3,403,840 -- -- --
Repurchased.............................................. (109,487,993) (5,823,953) (379,760) (2,890,808)
-----------------------------------------------------------
Net increase (decrease).................................. (608,113) (3,735,084) (263,898) (280,708)
===========================================================
</TABLE>
See Notes to Financial Statements
---------------------
50
<PAGE> 51
<TABLE>
<CAPTION>
STRATEGIC CAPITAL CONVERTIBLE FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION SECURITIES SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 2,361,239 $ 995,284 $ 2,821,274 $ 563,440 $ 911,026 $ 496,270 $ 166,186 $ 629,406
(985,738) 730,503 4,807,542 (3,370,816) (757,498) (1,264,355) 610,447 (220,133)
-- (40,953) 38 1,242 (19,870) 281,545 (5,470) --
-- -- -- 59,620 -- -- -- --
3,455,635 5,582,563 16,534,766 49,214,834 2,674,032 1,590,847 2,012,957 1,329,763
-- 47,757 22 19 (2) 60,961 131 --
-- -- -- 96,925 -- -- -- --
---------------------------------------------------------------------------------------------------------------------
4,831,136 7,315,154 24,163,642 46,565,264 2,807,688 1,165,268 2,784,251 1,739,036
---------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
20,460,494 2,330,622 10,931,024 124,222,371 1,864,963 17,445,753 14,960,318 590,742
-- -- -- -- -- -- -- --
(23,833,219) (10,407,274) (28,125,285) (114,076,706) (7,228,050) (28,794,564) (13,815,650) (7,604,823)
---------------------------------------------------------------------------------------------------------------------
(3,372,725) (8,076,652) (17,194,261) 10,145,665 (5,363,087) (11,348,811) 1,144,668 (7,014,081)
---------------------------------------------------------------------------------------------------------------------
1,458,411 (761,498) 6,969,381 56,710,929 (2,555,399) (10,183,543) 3,928,919 (5,275,045)
48,057,248 65,357,347 164,159,249 229,544,204 34,995,380 68,640,717 21,229,763 19,194,188
---------------------------------------------------------------------------------------------------------------------
$ 49,515,659 $ 64,595,849 $171,128,630 $ 286,255,133 $32,439,981 $ 58,457,174 $ 25,158,682 $13,919,143
=====================================================================================================================
$ 7,700,205 $ 2,065,153 $ 8,723,774 $ 563,440 $ 3,001,318 $ 684,904 $ 524,586 $ 1,908,221
=====================================================================================================================
2,474,979 196,822 876,374 6,693,180 156,194 1,680,457 1,096,075 46,089
-- -- -- -- -- -- -- --
(2,876,409) (883,076) (2,248,093) (6,191,912) (607,407) (2,777,257) (993,254) (579,804)
---------------------------------------------------------------------------------------------------------------------
(401,430) (686,254) (1,371,719) 501,268 (451,213) (1,096,800) 102,821 (533,715)
=====================================================================================================================
</TABLE>
---------------------
51
<PAGE> 52
---------------------
ANCHOR SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
GOVERNMENT &
MONEY MARKET QUALITY BOND FIXED INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............................. $ 5,053,075 $ 16,092,101 $ 2,210,718 $ 589,312
Net realized gain (loss) on investments.................. -- (7,986,242) (1,301,569) 45,029,897
Net realized foreign exchange gain (loss) on other assets
and liabilities........................................ -- -- -- (2,613)
Net realized loss on futures contracts................... -- -- -- (60,773)
Change in unrealized appreciation/depreciation of
investments............................................ -- (16,641,129) (2,198,588) (59,903,478)
Change in unrealized foreign exchange gain (loss) on
other assets and liabilities........................... -- -- -- --
Change in unrealized appreciation/depreciation on futures
contracts.............................................. -- -- -- 109,200
------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations............................................. 5,053,075 (8,535,270) (1,289,439) (14,238,455)
------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO SHAREHOLDERS:
Dividends from net investment income..................... (5,053,075) (13,100,000) (2,700,000) (651,000)
Distributions from net realized gains on investments..... -- (3,391,923) -- (37,838,174)
------------------------------------------------------------
Total dividends and distributions paid to shareholders... (5,053,075) (16,491,923) (2,700,000) (38,489,174)
------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................................ 322,223,508 129,783,476 7,041,126 114,004,262
Proceeds from shares issued for reinvestment of dividends
and distributions...................................... 5,053,075 16,491,923 2,700,000 38,489,174
Cost of shares repurchased............................... (300,580,693) (153,377,529) (18,285,252) (164,666,850)
------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions............................. 26,695,890 (7,102,130) (8,544,126) (12,173,414)
------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................. 26,695,890 (32,129,323) (12,533,565) (64,901,043)
NET ASSETS:
Beginning of period...................................... 99,308,527 264,659,559 41,115,663 311,050,070
------------------------------------------------------------
End of period............................................ $ 126,004,417 $ 232,530,236 $ 28,582,098 $246,149,027
============================================================
---------------
Undistributed Net Investment Income...................... $ -- $ 15,789,649 $ 2,166,226 $ 588,113
============================================================
Shares issued and repurchased:
Sold..................................................... 322,223,508 9,507,500 499,156 5,504,059
Issued in reinvestment of dividends and distributions.... 5,053,075 1,289,439 209,465 2,070,424
Repurchased.............................................. (300,580,693) (11,332,089) (1,320,604) (7,970,971)
------------------------------------------------------------
Net increase (decrease).................................. 26,695,890 (535,150) (611,983) (396,488)
============================================================
</TABLE>
See Notes to Financial Statements
---------------------
52
<PAGE> 53
<TABLE>
<CAPTION>
STRATEGIC CAPITAL CONVERTIBLE FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION SECURITIES SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,240,121 $ 1,306,606 $ 5,471,540 $ (204,197) $ 2,001,673 $ 795,683 $ 359,570 $ 1,320,838
(1,823,863) 8,365,992 13,105,843 5,912,034 748,435 6,316,998 340,375 33,190
-- (23,792) (113,378) (30,358) 690 648,570 (23,942) --
-- (14,492) (18,332) (672,334) -- -- -- --
(6,331,551) (11,630,124) (22,083,098) (12,793,677) (6,810,303) (11,076,911) (1,087,698) (2,240,674)
-- 64,785 364 (7) 283 172,636 (95) --
-- 150 450 (7,350) -- -- -- --
---------------------------------------------------------------------------------------------------------------------
(2,915,293) (1,930,875) (3,636,611) (7,795,889) (4,059,222) (3,143,024) (411,790) (886,646)
---------------------------------------------------------------------------------------------------------------------
(6,300,000) (976,000) (6,102,000) -- (1,537,000) (212,000) (175,000) (1,650,000)
-- (11,425,149) (19,208,777) (22,323,210) (3,502,058) -- (166,804) (110,379)
---------------------------------------------------------------------------------------------------------------------
(6,300,000) (12,401,149) (25,310,777) (22,323,210) (5,039,058) (212,000) (341,804) (1,760,379)
---------------------------------------------------------------------------------------------------------------------
67,332,548 9,928,946 20,436,178 278,365,698 13,449,452 77,332,563 27,993,570 5,380,948
6,300,000 12,401,149 25,310,777 22,323,210 5,039,058 212,000 341,804 1,760,379
(95,663,040) (19,107,059) (61,540,644) (223,541,035) (15,949,592) (78,128,558) (24,606,646) (5,800,361)
---------------------------------------------------------------------------------------------------------------------
(22,030,492) 3,223,036 (15,793,689) 77,147,873 2,538,918 (583,995) 3,728,728 1,340,966
---------------------------------------------------------------------------------------------------------------------
(31,245,785) (11,108,988) (44,741,077) 47,028,774 (6,559,362) (3,939,019) 2,975,134 (1,306,059)
79,303,033 76,466,335 208,900,326 182,515,430 41,554,742 72,579,736 18,254,629 20,500,247
---------------------------------------------------------------------------------------------------------------------
$ 48,057,248 $ 65,357,347 $164,159,249 $ 229,544,204 $ 34,995,380 $ 68,640,717 $ 21,229,763 $19,194,188
====================================================================================================================
$ 5,338,966 $ 1,069,869 $ 5,902,500 $ -- $ 2,089,605 $ 188,634 $ 358,400 $ 1,278,815
====================================================================================================================
7,532,098 756,391 1,559,801 14,852,505 953,509 7,099,164 2,029,112 396,096
793,451 1,067,225 2,137,735 1,248,502 408,021 19,099 24,088 142,772
(10,628,944) (1,472,803) (4,727,375) (11,993,003) (1,185,606) (7,256,217) (1,825,654) (435,632)
---------------------------------------------------------------------------------------------------------------------
(2,303,395) 350,813 (1,029,839) 4,108,004 175,924 (137,954) 227,546 103,236
====================================================================================================================
</TABLE>
---------------------
53
<PAGE> 54
---------------------
ANCHOR SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. ORGANIZATION: Anchor Series Trust (the "Trust") was organized as a
business trust under the laws of the Commonwealth of Massachusetts on August 26,
1983. The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end diversified management investment company. Effective
December 1, 1992, the Aggressive Growth Portfolio and Aggressive Multi-Asset
Portfolio changed their names to the Capital Appreciation Portfolio and the
Strategic Multi-Asset Portfolio, respectively.
Prior to January 18, 1990, all of the shares of the Trust were owned by
certain separate accounts of Integrated Resources Life Insurance Company ("IR
Life"), The Capitol Life Insurance Company ("Capitol Life"), and Presidential
Life Insurance Company. On that date, Anchor National Life Insurance Company
("Anchor National") acquired, on an assumption reinsurance basis, all of the
variable annuity and variable life insurance contracts issued by IR Life,
including certain variable annuity contracts which had been assumed previously
by IR Life from Capitol Life. In connection with these transactions, all of the
separate accounts of IR Life and Capitol Life that previously owned shares of
the Trust were transferred to Anchor National. Anchor National is an indirect
wholly owned subsidiary of SunAmerica Inc. ("SunAmerica"). Phoenix Mutual Life
Insurance Company ("Phoenix") subsequently acquired on an assumption reinsurance
basis, all of Anchor National's variable life contracts and, accordingly,
certain separate accounts of Anchor National owning shares of the Trust were
transferred to Phoenix. On September 3, 1992, First SunAmerica Life Insurance
Company ("First SunAmerica"), an indirect wholly owned subsidiary of SunAmerica
Inc., commenced sales of variable annuity contracts funded through the Trust.
Therefore, certain shares of the Trust are owned by a First SunAmerica separate
account.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: Following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales prices
reported on recognized securities exchanges or, for listed securities having no
sales reported and for unlisted securities, upon last-reported bid prices.
Nonconvertible bonds, debentures, and other long-term debt securities are valued
at prices obtained for the day of valuation from a bond pricing service of a
major dealer in bonds when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, an over-the-counter
or exchange quotation at the mean of representative bid or asked prices may be
used. Securities traded primarily on securities exchanges outside the United
States are valued at the last sale price on such exchanges on the day of
valuation, or if there is no sale on the day of valuation, at the last reported
bid price. Except for the Money Market Portfolio, short-term securities with
original or remaining maturities in excess of 60 days are valued at the mean of
their quoted bid and ask prices. Discounts or premiums on short-term securities
with 60 days or less to maturity are amortized to maturity. Discounts and
premiums are determined based upon the cost of the securities to the Trust if
acquired within 60 days of maturity or, if already held by the Trust on the 60th
day, are amortized to maturity based on the value determined on the 61st day.
Securities for which quotations are not readily available are valued at fair
value as determined in good faith under the direction of the Trust's Trustees.
For the Money Market Portfolio, securities are valued at amortized cost, which
approximates market value. The amortized cost method involves valuing a security
at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of any discount or premium.
REPURCHASE AGREEMENTS: The Trust's custodian takes possession of the collateral
pledged for investments in repurchase agreements. The underlying collateral is
valued daily on a mark-to-market basis to assure that the value, including
accrued interest, is at least equal to the repurchase price. In the event of
default of the obligation to repurchase, the Trust has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If the
seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Trust may be delayed or limited.
FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at
published rates on the following basis:
(i) market value of investment securities, other assets and liabilities at the
prevailing rate of exchange on the valuation date.
(ii) purchases and sales of investment securities, income and expenses at the
rate of exchange prevailing on the respective dates of such transactions.
Assets and liabilities denominated in foreign currencies and commitments under
forward foreign currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or incurred.
---------------------
54
<PAGE> 55
The Trust does not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at fiscal year-end. The Trust does not isolate
the effect of changes in foreign exchange rates from the changes in the market
prices of portfolio securities sold during the year.
Realized foreign exchange gain (loss) on other assets and liabilities and
change in unrealized foreign exchange gain (loss) on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses realized between the trade and settlement dates of securities
transactions, dividends received, the difference between the amounts of
interest, discount and foreign withholding taxes recorded on the Trust's books
and the U.S. dollar equivalent amounts actually received or paid and changes in
the unrealized foreign exchange gains and losses relating to other assets and
liabilities arising as a result of changes in the exchange rate.
FUTURES CONTRACTS: A futures contract is an agreement between two parties to
buy and sell a security at a set price on a future date. Upon entering into such
a contract the Trust is required to pledge to the broker an amount of cash or
U.S. government securities equal to the minimum "initial margin" requirements of
the exchange on which the futures contract is traded. The contract amount
reflects the extent of a portfolio's exposure in these financial instruments. A
portfolio's participation in the futures markets involves certain risks,
including imperfect correlation between movements in the price of futures
contracts and movements in the price of the securities hedged or used for cover.
The Trust's activities in futures contracts are conducted through regulated
exchanges which do not result in counterparty credit risks. Pursuant to a
contract the portfolios agree to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as "variation margin" and are recorded by the portfolios as
unrealized appreciation or depreciation. When a contract is closed, the
portfolios record a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed.
SECURITIES TRANSACTIONS, DIVIDENDS, INVESTMENT INCOME AND EXPENSES: As is
customary in the mutual fund industry, securities transactions are accounted for
on the date the securities are purchased or sold. Interest income is accrued
daily except when collection is not expected. Dividend income and distributions
to shareholders are recorded on the ex-dividend date except for certain
dividends from foreign securities, which are recorded as soon as the Trust is
informed after the ex-dividend date. The Trust does not amortize premiums or
accrete discounts on fixed income securities, except those original issue
discounts for which amortization is required for federal income tax purposes;
gains and losses realized upon the sale of such securities are based on their
identified cost.
The Fund records dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions 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 capital gains. To the extent distributions exceed current
and accumulated earnings and profits for federal income tax purposes, they are
reported as distributions of paid-in capital.
Common expenses incurred by the Trust are allocated among the series based
upon relative net assets. In all other respects, expenses are charged to each
series as incurred on a specific identification basis.
STATEMENT OF POSITION 93-2: In 1994, the Trust implemented Statement of
Position 93-2 Determination, Disclosure, and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. Accordingly, permanent book-tax differences relating to shareholder
distributions have been reclassified to paid-in-capital. Net investment
income/loss, net realized gain/loss, and net assets were not affected by this
change.
At December, 31, 1993, the cumulative effect of permanent book/tax
reclassifications resulted in increases (decreases) to the components of net
assets as follows:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED
NET NET PAID
REALIZED REALIZED IN
INCOME GAIN/LOSS CAPITAL
---------------------------------------------
<S> <C> <C> <C>
Government & Quality Bond Portfolio.................................... $ 337,133 $ 682,083 $(1,019,216)
Fixed Income Portfolio................................................. 269,996 (428,521) 158,525
Growth Portfolio....................................................... 1,182,297 (1,154,213) (28,084)
High Yield Portfolio................................................... 659,135 (503,010) (156,125)
Strategic Multi-Asset Portfolio........................................ 242,409 (220,022) (22,387)
Multi-Asset Portfolio.................................................. 2,506,813 (2,333,565) (173,248)
Capital Appreciation Portfolio......................................... 193,843 (175,793) (18,050)
Convertible Securities Portfolio....................................... 727,108 (666,774) (60,334)
Foreign Securities Portfolio........................................... 551,906 (518,197) (33,709)
Natural Resources Portfolio............................................ 165,591 (165,591) 0
Target '98 Portfolio................................................... 710,732 (737,076) 26,344
</TABLE>
---------------------
55
<PAGE> 56
For the year ended December 31, 1994, the reclassification arising from
book/tax differences resulted in increases (decreases) to the components of net
assets as follows:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED
NET NET PAID
REALIZED REALIZED IN
INCOME/LOSS GAIN/LOSS CAPITAL
------------------------------------------
<S> <C> <C> <C>
Government & Quality Bond Portfolio........................................... $(290,401) $ 290,401 --
Fixed Income Portfolio........................................................ (7,914) 7,914 --
Growth Portfolio.............................................................. (425) 425 --
High Yield Portfolio.......................................................... 128,322 (128,322) --
Strategic Multi-Asset Portfolio............................................... (250,470) 250,470 --
Multi-Asset Portfolio......................................................... 431,878 (431,878) --
Capital Appreciation Portfolio................................................ 204,197 (204,197) --
Convertible Securities Portfolio.............................................. 89,576 (89,576) --
Foreign Securities Portfolio.................................................. (627,330) 627,330 --
Natural Resources Portfolio................................................... (724) 724 --
Target '98 Portfolio.......................................................... 63,613 (63,613) --
</TABLE>
NOTE 3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Trust transfers uninvested cash
balances into a single joint account, the daily aggregate balance of which is
invested in one or more repurchase agreements collateralized by U.S. Treasury or
federal agency obligations. As of June 30, 1995, the undivided interest in a
repurchase agreement in the joint account of each portfolio of the Trust was as
follows: Money Market Portfolio, 5.8%; Government and Quality Bond Portfolio,
5.6%; Fixed Income Portfolio, 1.9%; Growth Portfolio, 24.2%; High Yield
Portfolio, 9.5%; Strategic Multi-Asset Portfolio, 0.9%; Multi-Asset Portfolio,
0.1%; Capital Appreciation Portfolio, 38.4%; Convertible Securities Portfolio,
7.6%; Foreign Securities Portfolio, 3.9%; Natural Resources Portfolio, 2.0% and
Target '98 Portfolio, 0.1%. The undivided interest for the Trust represented
$47,070,000 in principal amount. As of such date the repurchase agreement in the
joint account and the collateral therefore was as follows:
UBS Securities, Inc. Repurchase Agreement, 6.13% dated 6/30/95, in the
principal amount of $47,070,000 repurchase price $47,094,025 due 7/03/95
collateralized by $45,045,000 U.S. Treasury Notes 9.38% due 4/15/96 and
$1,070,000 of U.S. Treasury Notes 5.13% due 5/31/97, approximate aggregate value
$48,223,701.
NOTE 4. FEDERAL INCOME TAXES: It is the Trust's policy to meet the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable net income to shareholders. Therefore, no federal
income tax provision is required. Each portfolio is considered a separate entity
for tax purposes.
At June 30, 1995, the cost of investments for federal income tax purposes and
aggregate gross unrealized gains and losses for each portfolio were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE UNREALIZED
GROSS GROSS GAIN CAPITAL
UNREALIZED UNREALIZED (LOSS) COST OF LOSS
GAIN LOSS NET INVESTMENTS CARRYOVER EXPIRATION
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Money Market Portfolio............ $ -- $ -- $ -- $128,901,604 $ -- --
Government & Quality Bond
Portfolio....................... 3,026,530 (2,097,879) 928,651 202,230,224 -- -- *
Fixed Income Portfolio............ 1,325,769 (114,340) 1,211,429 26,390,244 2,796,395 1996-2002*
Growth Portfolio.................. 53,851,148 (14,344,569) 39,506,579 238,345,603 -- --
High Yield Portfolio.............. 1,288,408 (1,226,429) 61,979 48,700,372 13,099,310 1997-2002*
Strategic Multi-Asset Portfolio... 10,357,542 (1,119,712) 9,237,830 54,207,374 -- --
Multi-Asset Portfolio............. 27,310,752 (1,149,839) 26,160,913 144,684,177 -- --
Capital Appreciation Portfolio.... 61,214,784 (7,240,859) 53,973,925 227,388,733 -- --
Convertible Securities
Portfolio....................... 1,058,024 (1,738,304) (680,280) 34,130,745 -- -- *
Foreign Securities Portfolio...... 6,082,745 (2,789,487) 3,293,258 55,005,088 4,249,549 2000-2001
Natural Resources Portfolio....... 3,700,390 (864,271) 2,836,119 22,272,337 -- -- *+
Target '98 Portfolio.............. 760,429 (66,974) 693,455 13,199,109 27,017 2002
</TABLE>
The Foreign Securities Portfolio utilized capital loss carryovers of
$8,215,852 to partially offset the portfolios net taxable gains realized and
recognized in the year ended December 31, 1994.
* Post 10/31 Capital Loss Deferrals: Government & Quality Bond $1,679,927; Fixed
Income $253,633; High Yield $917,772; Convertible $813,943; Natural Resources
$173,000.
+ Post 10/31 Currency Loss Deferrals: Natural Resources $17,847.
NOTE 5. INVESTMENT MANAGEMENT AGREEMENTS: The Trust has entered into an
Investment Advisory and Management Agreement (the "Management Agreement") with
SunAmerica Asset Management Corp. ("SAAMCo") with respect to each portfolio.
SAAMCo serves as manager for each of the portfolios. SAAMCo has entered into
Subadvisory Agreements (the "Subadvisory Agreement") with Wellington Management
Company ("WMC") to manage the investments of each portfolio.
---------------------
56
<PAGE> 57
The Trust pays SAAMCo a monthly fee calculated daily at the following annual
percentages of each portfolio's average daily net assets:
<TABLE>
<CAPTION>
AVERAGE DAILY MANAGEMENT AVERAGE DAILY MANAGEMENT
PORTFOLIO NET ASSETS FEE PORTFOLIO NET ASSETS FEE
----------------------------------------------------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market $0-$150 million .500% Capital Appreciation $0-$100 million .750%
> $150 million .475% > $100 million .675%
> $250 million .450% > $250 million .625%
> $500 million .425% > $500 million .600%
Government & Quality
Bond/ $0-$200 million .625% Convertible Securities $0-$100 million .700%
Fixed Income > $200 million .575% > $100 million .650%
> $500 million .500% > $250 million .600%
Growth $0-$250 million .750% > $500 million .575%
> $250 million .675% Foreign Securities $0-$100 million .900%
> $500 million .600% > $100 million .825%
High Yield $0-$250 million .700% > $250 million .750%
> $250 million .575% > $500 million .700%
> $500 million .500% Natural Resources > $ 0 .750%
Strategic Multi-Asset/ $0-$200 million 1.000% Target '98 $0-$100 million .625%
Multi-Asset > $200 million .875% > $100 million .570%
> $500 million .800% > $250 million .525%
> $500 million .500%
</TABLE>
The portion of the investment advisory fees received by SAAMCo which are paid
to WMC are as follows:
<TABLE>
<CAPTION>
AVERAGE DAILY WMC AVERAGE DAILY WMC
PORTFOLIO NET ASSETS ALLOCATION PORTFOLIO NET ASSETS ALLOCATION
----------------------------------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market $0-$500 million .075% Multi-Asset $0-$ 50 million .250%
> $500 million .020% > $ 50 million .175%
Government & Quality
Bond/ $0-$ 50 million .225% > $150 million .150%
Fixed Income > $ 50 million .125% Capital Appreciation $0-$ 50 million .375%
> $100 million .100% > $ 50 million .275%
Growth/ $0-$ 50 million .325% > $150 million .200%
Convertible Securities > $ 50 million .225% > $500 million .150%
> $150 million .200% Foreign Securities $0-$ 50 million .400%
> $500 million .150% > $ 50 million .275%
High Yield $0-$ 50 million .300% > $150 million .200%
> $ 50 million .225% > $500 million .150%
> $150 million .175% Natural Resources $0-$ 50 million .350%
> $500 million .150% > $ 50 million .250%
Strategic Multi-Asset $0-$ 50 million .300% > $150 million .200%
> $ 50 million .200% > $500 million .150%
> $150 million .175% Target '98 > $0-$50 million .225%
> $500 million .150% > $ 50 million .150%
> $100 million .100%
> $500 million .050%
</TABLE>
The Management Agreements provide that SAAMCo shall act as investment adviser
to the Trust; manage the Trust's investments; administer its business affairs;
furnish offices, necessary facilities and equipment; provide clerical,
bookkeeping and administrative services; and permit any of its officers or
employees to serve, without compensation, as trustees or officers of the Trust,
if duly elected to such positions.
SAAMCo has agreed that, in the event the expenses of one or more of the
portfolios exceeds applicable state law expense limitations, it will waive its
fees under the Management Agreements to the extent necessary to reduce the
expenses of the affected portfolio(s) so as not to exceed such limitation(s). No
such waiver shall result in the obligation (contingent or otherwise) of the
affected portfolio(s) to repay SAAMCo in any fiscal year any such amounts waived
in previous fiscal years. Such agreements with respect to expense limitations do
not require SAAMCo to additionally reimburse any portfolio in the event the
waivers are insufficient to reduce such portfolio's expenses to the applicable
limitations. For the six months ended June 30, 1995, no such waiver was
required. For the six months ended June 30, 1995, SAAMCo received fees of
$4,741,330 from the Trust, of which SAAMCo informed the Trust that $3,338,616
was retained and $1,402,714 was allocated to WMC.
---------------------
57
<PAGE> 58
NOTE 6. SECURITIES TRANSACTIONS: The portfolios had the following purchases and
sales of long-term securities for the six months ended June 30, 1995:
<TABLE>
<CAPTION>
GOVERNMENT &
MONEY QUALITY FIXED STRATEGIC
MARKET BOND INCOME GROWTH HIGH YIELD MULTI-ASSET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases............................ $ -- $192,440,281 $6,854,658 $94,560,010 $15,514,241 $11,610,624
Sales................................ -- 229,805,502 9,826,451 87,906,198 15,864,625 16,941,558
U.S. Government Securities included
above were as follows:
Purchases of U.S. Government
Securities......................... -- 183,737,261 985,670 -- -- 2,348,304
Sales of U.S. Government
Securities......................... -- 214,715,152 3,370,469 -- -- 1,549,043
<CAPTION>
CAPITAL CONVERTIBLE FOREIGN NATURAL
MULTI-ASSET APPRECIATION SECURITIES SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-----------------------------------------------------------------------------
Purchases............................ $104,481,058 $98,109,152 $17,168,026 $ 9,531,878 $9,018,147 $ 4,421,531
Sales................................ 112,722,928 72,726,231 20,713,952 19,784,031 7,304,238 11,054,939
U.S. Government Securities included
above were as follows:
Purchases of U.S. Government
Securities......................... 84,496,327 -- -- -- -- 3,969,516
Sales of U.S. Government
Securities......................... 88,391,407 -- -- -- -- 4,879,267
</TABLE>
NOTE 7. TRANSACTIONS WITH AFFILIATES: The Trust has executed purchases and
sales of securities through Royal Alliance Associates, Inc. ("Royal"), a
broker/dealer which is affiliated with SAAMCo. For the six months ended June 30,
1995, the following portfolios of the Trust paid brokerage commissions to Royal
of:
<TABLE>
<CAPTION>
AMOUNT
-------
<S> <C>
Growth Portfolio............................................................ $19,171
Strategic Multi-Asset Portfolio............................................. 1,216
Multi-Asset Portfolio....................................................... 3,645
Capital Appreciation Portfolio.............................................. 27,425
Natural Resources Portfolio................................................. 21,012
-------
$72,469
=======
</TABLE>
NOTE 8. FINANCIAL INVESTMENTS WITH OFF-BALANCE SHEET RISK: At June 30, 1995, the
Strategic Multi-Asset and Foreign Securities Portfolios had outstanding forward
foreign currency exchange contracts ("forward contracts") as a hedge against
changes in future foreign exchange rates. Forward contracts involve elements of
market risk in excess of the amount reflected in the Statement of Assets and
Liabilities. The Trust bears the risk of an unfavorable change in the foreign
exchange rate underlying the forward contract.
NOTE 9. TRUSTEES RETIREMENT PLAN: The Trustees (and Directors) of the
SunAmerica Family of Mutual Funds have adopted the SunAmerica Disinterested
Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective
January 1, 1993 for the unaffiliated Trustees. The Retirement Plan provides
generally that if an unaffiliated Trustee who has at least 10 years of
consecutive service as a Disinterested Trustee of any of the SunAmerica mutual
funds (an "Eligible Trustee") retires after reaching age 60 but before age 70 or
dies while a Trustee, such person will be eligible to receive a retirement or
death benefit from each SunAmerica mutual fund with respect to which he or she
is an Eligible Trustee. As of each birthday, prior to the 70th birthday, each
Eligible Trustee will be credited with an amount equal to (i) 50% of his or her
regular fees (excluding committee fees) for services as a Disinterested Trustee
of each SunAmerica mutual fund for the calendar year in which such birthday
occurs, plus (ii) 8.5% of any amounts credited under clause (i) during prior
years. An Eligible Trustee may receive any benefits payable under the Retirement
Plan, at his or her election, either in one lump sum or in up to fifteen annual
installments. As of June 30, 1995, the Trust had accrued and expensed $35,715
for the Retirement Plan which is included in other accrued expenses on the
Statement of Assets and Liabilities.
---------------------
58
<PAGE> 59
---------------------
ANCHOR SERIES TRUST
FINANCIAL HIGHLIGHTS*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET DIVIDENDS DIVIDENDS
REALIZED TOTAL DECLARED FROM NET
NET ASSET NET & UNREALIZED FROM FROM NET REALIZED NET ASSET
VALUE INVEST- GAIN (LOSS) INVEST- INVEST- GAIN ON VALUE
PERIOD BEGINNING MENT ON MENT MENT INVEST- END OF TOTAL
ENDED OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME MENTS PERIOD RETURN
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market Portfolio
12/31/91 $ 1.00 $ 0.06 $ -- $ 0.06 $ (0.06) $ -- $ 1.00 5.6%
12/31/92 1.00 0.03 -- 0.03 (0.03) -- 1.00 3.4
12/31/93 1.00 0.02 -- 0.02 (0.02) -- 1.00 2.0
12/31/94 1.00 0.04 -- 0.04 (0.04) -- 1.00 3.8
6/30/95# 1.00 0.03 -- 0.03 (0.03) -- 1.00 2.8
Government & Quality Bond Portfolio
12/31/91 12.06 1.00 1.08 2.08 (0.11) -- 14.03 17.3
12/31/92 14.03 1.02 (0.05) 0.97 (1.07) -- 13.93 6.9
12/31/93 13.93 0.90 0.25 1.15 (0.86) -- 14.22 8.3
12/31/94 14.22 0.86 (1.30) (0.44) (0.73) (0.19) 12.86 (3.1)
6/30/95# 12.86 0.46 1.06 1.52 -- -- 14.38 11.8
Fixed Income Portfolio
12/31/91 12.57 0.96 0.95 1.91 (0.05) -- 14.43 15.2
12/31/92 14.43 0.98 (0.04) 0.94 (1.06) -- 14.31 6.5
12/31/93 14.31 0.95 0.19 1.14 (0.91) -- 14.54 8.0
12/31/94 14.54 0.89 (1.36) (0.47) (1.17) -- 12.90 (3.2)
6/30/95# 12.90 0.05 1.41 1.46 -- -- 14.36 11.3
Growth Portfolio
12/31/91 15.46 0.22 6.05 6.27 (0.12) (0.21) 21.40 40.8
12/31/92 21.40 0.09 0.99 1.08 (0.19) (0.62) 21.67 5.4
12/31/93 21.67 0.05 1.60 1.65 (0.08) (0.92) 22.32 7.8
12/31/94 22.32 0.05 (1.03) (0.98) (0.05) (3.11) 18.18 (4.7)
6/30/95# 18.18 0.05 2.60 2.65 -- -- 20.83 14.6
High Yield Portfolio
12/31/91 5.96 0.81 1.16 1.97 (0.05) -- 7.88 33.1
12/31/92 7.88 0.81 0.28 1.09 (0.58) -- 8.39 13.9
12/31/93 8.39 0.79 0.79 1.58 (0.54) -- 9.43 19.1
12/31/94 9.43 0.15 (0.56) (0.41) (1.15) -- 7.87 (4.5)
6/30/95# 7.87 0.39 0.43 0.82 -- -- 8.69 10.4
Strategic Multi-Asset Portfolio
12/31/91 10.17 0.26 2.20 2.46 -- -- 12.63 24.2
12/31/92 12.63 0.23 0.25 0.48 (0.34) (0.32) 12.45 3.9
12/31/93 12.45 0.21 1.68 1.89 (0.28) -- 14.06 15.3
12/31/94 14.06 0.24 (0.53) (0.29) (0.20) (2.28) 11.29 (2.6)
6/30/95# 11.29 0.18 1.19 1.37 -- -- 12.66 12.1
<CAPTION>
RATIO OF
NET
RATIO OF INVESTMENT
NET EXPENSES INCOME
ASSETS TO TO
END OF AVERAGE AVERAGE PORTFOLIO
PERIOD PERIOD NET NET TURNOVER
ENDED (000'S) ASSETS ASSETS RATE
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Mark
12/31/91 $ 119,855 0.7% 5.7% --%
12/31/92 127,262 0.6 3.3 --
12/31/93 99,309 0.6 2.7 --
12/31/94 126,004 0.6 3.8 --
6/30/95# 125,396 0.6+ 5.6+ --
Government
12/31/91 197,463 0.8 7.8 87.5
12/31/92 207,860 0.8 7.3 76.4
12/31/93 264,660 0.7 6.2 93.2
12/31/94 232,530 0.7 6.4 117.6
6/30/95# 206,193 0.7+ 6.9+ 91.8
Fixed Inco
12/31/91 37,887 0.9 7.2 55.3
12/31/92 40,001 0.8 6.8 31.8
12/31/93 41,116 0.8 6.3 45.9
12/31/94 28,582 0.8 6.5 56.5
6/30/95# 28,030 0.8+ 6.7+ 24.9
Growth Por
12/31/91 231,857 0.9 1.2 36.9
12/31/92 279,291 0.9 0.5 37.9
12/31/93 311,050 0.9 0.2 66.3
12/31/94 246,149 0.8 0.2 74.8
6/30/95# 276,212 0.9+ 0.5+ 35.6
High Yield
12/31/91 33,046 1.0 11.3 54.9
12/31/92 47,140 0.9 9.7 134.9
12/31/93 79,303 0.9 8.5 121.1
12/31/94 48,057 0.9 9.0 97.9
6/30/95# 49,516 0.9+ 9.5+ 34.3
Strategic
12/31/91 88,585 1.3 2.3 42.0
12/31/92 79,621 1.3 1.8 57.5
12/31/93 76,466 1.3 1.2 73.9
12/31/94 65,357 1.3 1.8 63.7
6/30/95# 64,596 1.3+ 3.1+ 18.8
</TABLE>
---------------
* Selected data for a share of beneficial interest outstanding throughout each
period (calculated based upon average shares outstanding)
+ Annualized
# Unaudited
---------------------
59
<PAGE> 60
---------------------
ANCHOR SERIES TRUST
FINANCIAL HIGHLIGHTS*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET DIVIDENDS DIVIDENDS
REALIZED TOTAL DECLARED FROM NET
NET ASSET NET & UNREALIZED FROM FROM NET REALIZED NET ASSET
VALUE INVEST- GAIN (LOSS) INVEST- INVEST- GAIN ON VALUE
PERIOD BEGINNING MENT ON MENT MENT INVEST- END OF TOTAL
ENDED OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME MENTS PERIOD RETURN
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Multi-Asset Portfolio
12/31/91 $ 10.69 $ 0.45 $ 2.45 $ 2.90 $ (0.06) $ -- $ 13.53 27.3%
12/31/92 13.53 0.41 0.67 1.08 (0.47) (0.35) 13.79 8.2
12/31/93 13.79 0.36 0.63 0.99 (0.44) (0.46) 13.88 7.3
12/31/94 13.88 0.39 (0.60) (0.21) (0.47) (1.49) 11.71 (1.7)
6/30/95# 11.71 0.21 1.61 1.82 -- -- 13.53 15.5
Capital Appreciation Portfolio
12/31/91 9.81 0.09 5.41 5.50 (0.01) (0.07) 15.23 56.1
12/31/92 15.23 0.01 3.70 3.71 (0.07) (1.12) 17.75 25.9
12/31/93 17.75 (0.03) 3.73 3.70 (0.01) (1.16) 20.28 21.1
12/31/94 20.28 (0.02) (0.71) (0.73) -- (2.04) 17.51 (3.8)
6/30/95# 17.51 0.04 3.49 3.53 -- -- 21.04 20.2
Convertible Securities Portfolio
12/31/91 8.76 0.64 1.70 2.34 (0.12) -- 10.98 26.8
12/31/92 10.98 0.65 1.50 2.15 (0.64) -- 12.49 20.1
12/31/93 12.49 0.61 2.11 2.72 (0.55) (0.08) 14.58 22.0
12/31/94 14.58 0.66 (1.96) (1.30) (0.52) (1.20) 11.56 (9.7)
6/30/95# 11.56 0.31 0.73 1.04 -- -- 12.60 9.0
Foreign Securities Portfolio
12/31/91 10.25 0.07 (0.09) (0.02) (0.12) -- 10.11 (0.3)
12/31/92 10.11 0.13 (1.43) (1.30) (0.06) (0.28) 8.47 (13.1)
12/31/93 8.47 0.05 2.50 2.55 (0.09) -- 10.93 30.2
12/31/94 10.93 0.11 (0.46) (0.35) (0.03) -- 10.55 (3.2)
6/30/95# 10.55 0.08 0.18 0.26 -- -- 10.81 2.5
Natural Resources Portfolio
12/31/91 9.72 0.26 0.21 0.47 (0.13) -- 10.06 4.9
12/31/92 10.06 0.21 0.05 0.26 (0.39) -- 9.93 2.5
12/31/93 9.93 0.15 3.42 3.57 (0.17) -- 13.33 36.2
12/31/94 13.33 0.23 (0.09) 0.14 (0.09) (0.09) 13.29 1.0
6/30/95# 13.29 0.09 1.42 1.51 -- -- 14.80 11.4
Target '98 Portfolio
12/31/91 11.47 0.83 1.33 2.16 -- -- 13.63 18.9
12/31/92 13.63 0.82 0.16 0.98 (0.79) (0.25) 13.57 7.2
12/31/93 13.57 0.82 0.71 1.53 (0.93) (0.23) 13.94 11.2
12/31/94 13.94 0.83 (1.39) (0.56) (1.11) (0.07) 12.20 (4.1)
6/30/95# 12.20 0.45 0.73 1.18 -- -- 13.38 9.7
<CAPTION>
RATIO OF
INVESTMENT
RATIO OF INCOME
NET EXPENSES (LOSS)
ASSETS TO TO
END OF AVERAGE AVERAGE PORTFOLIO
PERIOD PERIOD NET NET TURNOVER
ENDED (000'S) ASSETS ASSETS RATE
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Multi-Asse
12/31/91 $ 177,429 1.2% 3.8% 50.7%
12/31/92 207,533 1.1 3.1 38.6
12/31/93 208,900 1.1 2.6 48.2
12/31/94 164,159 1.1 3.0 82.5
6/30/95# 171,129 1.1+ 3.4+ 64.0
Capital Ap
12/31/91 45,976 1.0 0.7 72.9
12/31/92 83,414 0.9 0.1 92.9
12/31/93 182,515 0.9 (0.2) 111.2
12/31/94 229,544 0.8 (0.1) 64.0
6/30/95# 286,255 0.8+ 0.5+ 32.8
Convertibl
12/31/91 14,551 1.1 6.4 109.0
12/31/92 23,723 1.0 5.6 86.5
12/31/93 41,555 0.9 4.4 86.2
12/31/94 34,995 0.9 4.9 50.7
6/30/95# 32,440 0.9+ 5.5+ 56.9
Foreign Se
12/31/91 30,823 1.4 0.7 64.2
12/31/92 29,204 1.3 1.4 144.2
12/31/93 72,579 1.3 0.5 47.7
12/31/94 68,641 1.2 1.0 73.9
6/30/95# 58,457 1.3+ 1.7+ 16.7
Natural Re
12/31/91 9,407 1.2 2.5 2.6
12/31/92 8,796 1.3 2.1 18.7
12/31/93 18,255 1.1 1.3 34.5
12/31/94 21,230 1.0 1.7 36.0
6/30/95# 25,159 1.0+ 1.4+ 32.1
Target '98
12/31/91 12,553 1.0 6.9 14.4
12/31/92 19,227 0.9 6.0 37.3
12/31/93 20,500 0.9 5.7 20.8
12/31/94 19,194 0.8 6.5 9.2
6/30/95# 13,919 0.8+ 6.9+ 25.2
</TABLE>
---------------
* Selected data for a share of beneficial interest outstanding throughout each
period (calculated based upon average shares outstanding)
+ Annualized
# Unaudited
---------------------
60
