<PAGE> 1
ANCHOR
SERIES
TRUST
SEMIANNUAL
REPORT
JUNE 30, 1996
<PAGE> 2
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DEAR ANCHOR SERIES TRUST INVESTOR:
Results during the first half of the Anchor Series Trust's
fiscal year (ending June 30, 1996) generally were divided along
equity and bond lines, with the equity-oriented portfolios
performing positively and income portfolios faring less
favorably. Performance for most portfolios was positive and
above index comparables. The Anchor Series Trust serves as the
underlying investment for the ICAP II Variable Annuity issued by
Anchor National Life Insurance Company and, in New York, by
First SunAmerica Life Insurance Company.
The following information from Wellington Management Company
("Wellington"), 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
The U.S. equity market generated positive returns for the
first six months of 1996. The S&P 500, up 10.1% in the first six
months of 1996, has risen 18 out of the last 19 months for the
period ended June 30, 1996. Strong mutual fund cash flows,
reasonable earnings gains and moderating inflation expectations
drove the market higher, balancing some increased market
volatility and a cautious outlook from many investment
observers. Despite the fact that many of the major non-U.S.
markets saw local market increases reduced by a stronger U.S.
dollar, international equity markets also posted positive
returns as the MSCI EAFE index increased by 4.7% in U.S. dollar
terms for the six months ended June 30, 1996. At mid year, most
of the world's major economies were growing at moderate rates,
or were poised to return to stronger growth. Inflation is
subdued, at rates generally below 3.0%. This economic backdrop,
along with steady monetary policies, supports the world's equity
markets. Investors in U.S. bonds were hurt by fears of the
Federal Reserve's potential rate increases, causing a decline in
the U.S. fixed-income markets. While strong employment reports
have fueled fixed-income investors' fears of an increase in
inflation and corresponding higher interest rates, other
economic indicators were more mixed.
Within this context, Wellington provides the following
investment comments for each of the twelve Anchor Series Trust
portfolios for the six months ended June 30, 1996.
EQUITY PORTFOLIOS
The Growth & Income Portfolio seeks high current income and
long-term capital appreciation through investment in common
stocks and convertible securities. The portfolio's focus shifted
in March 1996 away from almost exclusive investment in
convertible securities to a higher weighting in dividend-paying
common stocks. This move benefited the portfolio as convertible
securities (19% of the portfolio as of June 30, 1996)
underperformed during a declining bond market. The portfolio
returned 9.0% for the six months ended June 30, 1996, compared
to 8.7% for the Merrill Lynch All Convertibles Index and 10.1%
for the S&P 500. Investments in consumer nondurables and
information technology stocks were additive during this period
while investments in basic materials and some select
telecommunications and media securities were less positive. As
of June 30, 1996, the portfolio was slightly overweight versus
the S&P 500 in healthcare (13% of the portfolio), information
and entertainment (10%) and information technology (13%). The
portfolio's holdings are focused on companies that can
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continue to generate double-digit earnings growth through cost
reductions and restructuring as well as on companies with stable
profit characteristics.
The Foreign Securities Portfolio seeks long-term capital
appreciation through investment in a diversified portfolio of
equity securities issued by foreign companies and denominated in
foreign currencies. The portfolio provided an 8.0% return for
the six months ended June 30, 1996, outperforming the MSCI EAFE
index, which returned 4.7%. International equity returns were
impacted this year by uncertainty regarding the future direction
of interest rates and corporate profitability on the back of
"mixed" signals from the world's underlying economies. In
addition, returns were impacted by a stronger U.S. dollar, which
is a negative for foreign-based investments. Going forward,
Wellington Management believes the major economies of the world
are poised for faster economic growth. This is particularly true
in Japan where Wellington Management believes positive earnings
surprises will be seen for some time to come. As of June 30,
1996, the portfolio's investments were focused on established
markets, including a 50% weighting in Europe, 24% in Japan, 12%
in Asia ex-Japan, 6% in Australia and New Zealand, and a 6%
weighting in the Americas.
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 portfolio invests in
high-quality companies across the range of market
capitalization. The Growth Portfolio provided a 12.3% return for
the first six months of 1996, outperforming the S&P 500 return
of 10.1%. Positive contributors to performance included
Microsoft Corporation, which continues to enjoy strong sales
trends and is actively responding to Internet opportunities.
PepsiCo was also a leading performer with solid unit volume
trends at Frito Lay and in soft drinks. The portfolio's
investments as of June 30, 1996 were focused on finance stocks,
an area which continues to show signs of secular consolidation
and improved use of technology that will potentially improve
profit levels over time. The portfolio is also invested in
software and service companies and networking-related technology
companies. Finally, select manufacturing companies should
benefit from improving demand and moderate costs trends,
benefiting holdings such as General Electric, Boeing and United
Technologies.
The Capital Appreciation Portfolio seeks long-term capital
appreciation through investments in growth equity securities
that are widely diversified by industry and company. These
securities will generally consist of a greater proportion of
smaller companies that may be newer and less seasoned, or that
represent new or changing industries. The Capital Appreciation
Portfolio provided an 18.7% return for the first six months
compared to 10.1% for the S&P 500. Smaller capitalization
stocks, as measured by the Russell 2000 index, were up 10.4% for
this period. Security selection was the key to the portfolio's
returns during this period, with companies such as Compuware,
Jacor Communications and Gucci contributing significantly to the
portfolio's outperformance of the S&P 500 and Russell 2000
indexes. Investments in media companies, healthcare and
technology continue to be major commitments for the portfolio.
The Natural Resources Portfolio seeks to outpace inflation
through investments in natural resource companies around the
world. The portfolio achieved this objective during the first
six months of the year with a 7.3% return, compared to
annualized inflation of 2.8% as measured by the Consumer Price
Index for the period ended June 30, 1996. Relative to the S&P
500, energy stocks were beneficial to the portfolio,
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2
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while paper and non-ferrous metals hurt relative returns. The
portfolio's investments are focused on precious metals (26.3%),
energy (31.3%), paper and forest products (15.7%) and metals and
minerals companies (24.2%).
FIXED INCOME PORTFOLIOS
The Money Market Portfolio modestly outperformed the IBC
All-Taxable average for the first six months of 1996, providing
a yield of 2.46% compared to 2.43% for the IBC average. Although
the Federal Reserve has not raised rates (since it lowered them
in January), the money market area has seen rates increase in
anticipation of future Federal Reserve rate tightening. As of
June 30, 1996, the portfolio had an average maturity of 44 days
and was materially invested in commercial paper (73%) with the
majority of the remainder in floating-rate notes and agencies.
The Fixed Income Portfolio seeks to generate a high level of
current income that is, at the same time, consistent with
preservation of principal through investments in corporate bonds
and U.S. government securities. For the six months ended June
30, 1996, the portfolio returned -2.3%, compared to -1.9% for
the Lehman Government/ Corporate Index. The major factor in this
shortfall was the portfolio's duration. The portfolio's
effective duration at the end of June was 5.3 years, unchanged
from the beginning of the year. Its average quality is AA with a
5% commitment to below-investment grade bonds, an area that
helped returns so far this year. The portfolio's yield-to-worst
is 7.4%, and the portfolio was invested 50% in corporate bonds,
22% in Treasuries and agencies and 25% in mortgage-backed
securities at June 30, 1996.
The Government and Quality Bond Portfolio seeks to provide
relatively high current income, liquidity and security of
principal. The first six months of 1996 have been a difficult
time for the U.S. bond market as the price of fixed income
securities declined. The price decline occurred as the market
grew increasingly concerned about a potential uptick in
inflation and the resulting likely increase in interest rates.
Although the Federal Reserve did not raise short-term rates,
intermediate- and longer-term securities yields rose and prices
declined. In this environment, the Government and Quality Bond
Portfolio returned -2.2% compared to the Lehman Aggregate index
return of -1.2%. The major factor in the portfolio's returns was
its longer duration during a period of rising interest rates. As
of June 30, 1996, the portfolio's effective duration was 4.9
years and the portfolio's yield-to-worst was 6.1%. The portfolio
was invested 31% in U.S. Treasuries and agencies, 40% in agency
mortgage-backed securities, 23% in corporate bonds, and 6% in
asset-backed bonds and other as of June 30, 1996.
The High Yield Portfolio seeks to provide high current income
and capital appreciation by investing in corporate bonds rated
BBB/Baa or lower. The high yield sector of the bond market was
one of the few areas that showed positive returns at the end of
the first six months of 1996. The High Yield Portfolio returned
3.1%, slightly below the Lehman High Yield Index at 3.5%.
Performance in the high-yield market was divided by quality,
with the lowest-quality securities outperforming higher-quality
instruments. In this environment, we have chosen to focus the
portfolio's investments in basic industries, media companies,
paper and aeronautics industries. The portfolio's yield-to-worst
as of June 30, 1996 was 10% and its average quality was B+.
The Target '98 Portfolio, which will terminate in November,
1998, performed as would be expected given its declining life
span to the termination date. It provided a 0.3% return for the
first six months, identical to a three-year Treasury bond. The
portfolio
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remains fully invested with 82% in zero coupon bonds and the
remainder in corporate bonds.
BALANCED PORTFOLIOS
The Multi-Asset Portfolio seeks to provide investors with
long-term total investment return consistent with moderate
investment risk. The portfolio achieves this mandate through a
weighting of approximately 60% investment in U.S. core equities
and 40% in U.S. investment grade bonds. The Multi-Asset
Portfolio returned 4.5% for the first six months of 1996, in
between the negative returns of the bond market and the positive
return of the U.S. stock market.
The Strategic Multi-Asset Portfolio seeks to obtain high
long-term total investment return through investment in U.S.
stocks, foreign stocks, aggressive stocks and fixed income
securities. The Strategic Multi-Asset Portfolio provided
investors a 7.1% return for the first six months of the year,
benefited by strong returns in the aggressive equity component
and the foreign securities component. As of June 30, 1996, the
Portfolio was invested 27% in core U.S. equities, 31% in foreign
equities and 14% in aggressive growth stocks, for a total of 72%
in equities and 28% in fixed income.
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
with your retirement assets.
Sincerely,
Eli Broad
Chairman and Chief Executive Officer,
Anchor National Life Insurance Company
First SunAmerica Life Insurance Company
August 16, 1996
-------------------------------
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. Investments in
securities related to gold or other precious metals and minerals
are considered speculative and are impacted by a host of
worldwide economic, financial and political factors. 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, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 101.8% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 76.6%
American Home Products Corp. 5.40% due 8/15/96........................ $ 2,500,000 $ 2,483,125
Associates Corp. of North America 5.40% due 9/25/96................... 2,300,000 2,270,330
Bear Stearns Cos., Inc. 5.35% due 7/25/96............................. 1,950,000 1,943,045
BHF Finance (DE), Inc. 5.34% due 7/09/96.............................. 2,500,000 2,497,033
Centric Funding Corp. 5.33% due 7/02/96............................... 2,500,000 2,499,630
Ciesco L.P. 5.29% due 8/02/96......................................... 2,500,000 2,488,244
Clipper Receivables Corp. 5.40% due 7/23/96........................... 2,300,000 2,292,410
CoreStates Capital Corp. 5.42% due 8/01/96(1)......................... 2,000,000 2,000,000
Corporate Receivables Corp. 5.27% due 7/12/96......................... 1,625,000 1,622,383
Delaware Funding Corp. 5.36% due 7/15/96.............................. 2,903,000 2,896,949
Den Danske Corp. 5.25% due 7/31/96.................................... 2,500,000 2,489,063
Enterprise Capital Funding Corp. 5.35% due 7/12/96.................... 2,000,000 1,996,731
Falcon Asset Securitization Corp. 5.33% due 7/12/96................... 2,500,000 2,495,928
General Electric Capital Corp. 5.25% due 8/30/96...................... 2,500,000 2,478,125
General Motors Acceptance Corp. 5.40% due 8/21/96..................... 1,775,000 1,761,421
General Motors Acceptance Corp. 5.45% due 10/02/96.................... 1,000,000 985,921
Greenwich Funding Corp. 5.31% due 7/19/96............................. 2,500,000 2,493,363
Hitachi America Ltd. 5.25% due 10/07/96............................... 1,455,000 1,434,206
International Lease Finance Corp. 5.30% due 8/23/96................... 2,500,000 2,480,493
Knight Ridder, Inc. 5.25% due 7/01/96................................. 2,000,000 2,000,000
Merrill Lynch & Co., Inc. 5.35% due 7/30/96........................... 2,500,000 2,489,226
Montana Blanc Capital Corp. 5.37% due 7/12/96......................... 2,500,000 2,495,898
Praxair, Inc. 5.63% due 9/16/96....................................... 735,000 726,149
Preferred Receivables Funding Corp. 5.33% due 8/05/96................. 2,500,000 2,487,045
Providian Corp. 5.35% due 7/19/96..................................... 2,800,000 2,792,510
Quebec (Province of) 5.08% due 7/22/96................................ 2,000,000 1,994,073
Ranger Funding Corp. 5.30% due 8/02/96................................ 2,500,000 2,488,222
Sears Roebuck Acceptance Corp. 5.41% due 8/19/96...................... 2,600,000 2,580,855
Toshiba America, Inc. 5.30% due 7/19/96............................... 2,500,000 2,493,375
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TOTAL CORPORATE SHORT-TERM NOTES (cost $64,155,753)................... 64,155,753
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MISCELLANEOUS -- 6.0%
Peoples Security Life Insurance Co. 5.58% due 8/20/96................. 2,000,000 2,000,000
SMM Trust 5.49% 8/01/96*(1)........................................... 3,000,000 3,000,000
------------
TOTAL MISCELLANEOUS (cost $5,000,000)................................. 5,000,000
------------
U.S. GOVERNMENT AND AGENCIES -- 19.2%
Federal Farm Credit Banks 5.60% due 6/03/97........................... 2,000,000 1,997,415
Student Loan Marketing Association 5.43% due 7/16/96(1)............... 10,000,000 10,000,000
United States Treasury Notes 7.50% due 1/31/97........................ 4,000,000 4,053,072
------------
TOTAL U.S. GOVERNMENT AND AGENCIES (cost $16,050,487)................. 16,050,487
------------
TOTAL SHORT-TERM SECURITIES (cost $85,206,240)........................ 85,206,240
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</TABLE>
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<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $85,206,240) 101.8% $85,206,240
Liabilities in excess of other assets -- (1.8) (1,530,045)
----- -----------
NET ASSETS -- 100.0% $83,676,195
===== ===========
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Variable rate security - the rate reflected is as of June 30,
1996; 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, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 92.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE -- 1.3%
Daimler-Benz Vehicle Trust 5.95% 2000................................ $ 1,332,701 $ 1,331,153
Premier Auto Trust 4.65% 1999........................................ 1,893,553 1,862,913
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3,194,066
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FINANCE -- 12.5%
Banc One Auto Grantor Trust 6.55% 2003............................... 5,000,000 5,012,500
Ford Motor Credit 4.83% 1999(1)...................................... 5,000,000 4,973,745
General Electric Capital Corp. 7.50% 2035............................ 5,000,000 4,994,800
General Reinsurance Corp. 9.00% 2009................................. 5,000,000 5,611,400
Morgan (J.P.) & Co., Inc. 6.25% 2005................................. 5,000,000 4,659,350
Stanford University 6.88% 2024....................................... 5,000,000 4,677,910
-------------
29,929,705
-------------
INDUSTRIALS -- 2.3%
Postal Square L.P. 8.95% 2022........................................ 4,836,481 5,555,086
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.2%
British Columbia Province Canada 6.50% 2026.......................... 3,125,000 2,794,063
-------------
RETAIL -- 3.2%
McDonald's Corp. 7.05% 2025.......................................... 3,300,000 3,068,604
Wal-Mart Stores, Inc. 6.75% 2023..................................... 5,000,000 4,519,850
-------------
7,588,454
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TRANSPORTATION -- 2.3%
United Parcel Service of America, Inc. 8.38% 2020.................... 5,000,000 5,518,200
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U.S. GOVERNMENT & AGENCIES -- 65.2%
Federal Home Loan Mortgage Corp. 6.00% 2008 - 2011................... 9,588,495 9,082,199
Federal Home Loan Mortgage Corp. 6.50% 2011.......................... 14,508,498 14,041,470
Federal Home Loan Mortgage Corp. 7.00% 2010 - 2011................... 19,967,910 19,710,479
Federal Home Loan Mortgage Corp. 7.29% 2004.......................... 20,000,000 19,756,200
Federal Home Loan Mortgage Corp. 14.75% 2010......................... 177,211 210,769
Federal National Mortgage Association 7.00% 2010 - 2011.............. 7,034,996 6,940,838
Federal National Mortgage Association 7.50% 2023 - 2025.............. 4,462,618 4,411,886
Federal National Mortgage Association 8.00% 2023..................... 13,135,367 13,233,882
Government National Mortgage Association 6.50% 2023.................. 8,784,871 8,175,377
Government National Mortgage Association 7.50% 2022.................. 8,472,698 8,401,781
Government National Mortgage Association 9.50% 2016 - 2017........... 2,898,334 3,117,371
Government National Mortgage Association 10.00% 2013 - 2017.......... 2,904,357 3,126,785
Government National Mortgage Association 11.50% 2014................. 21,025 22,662
Government National Mortgage Association 12.00% 1999 - 2016.......... 172,049 182,349
Government National Mortgage Association 12.75% 2014................. 80,522 94,688
Government National Mortgage Association 13.25% 1999 - 2014.......... 21,196 24,541
Government National Mortgage Association 13.50% 2014................. 9,897 11,783
Government National Mortgage Association 13.75% 2014................. 1,434 1,687
United States Treasury Bonds 10.38% 2012............................. 16,500,000 20,947,245
United States Treasury Notes 6.25% 1998.............................. 25,000,000 25,058,500
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156,552,492
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</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 4.0%
Hydro Quebec Electric 8.40% 2022..................................... $ 5,000,000 $ 5,266,900
US West Communications, Inc. 6.88% 2033.............................. 5,000,000 4,377,650
------------
9,644,550
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TOTAL INVESTMENT SECURITIES (cost $225,687,447)...................... 220,776,616
------------
<CAPTION>
REPURCHASE AGREEMENT -- 18.0%
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $43,185,000)................................................. 43,185,000 43,185,000
------------
TOTAL INVESTMENTS --
(cost $268,872,447) 110.0% 263,961,616
Liabilities in excess of other assets -- (10.0) (23,980,991)
----- ------------
NET ASSETS -- 100.0% $239,980,625
===== ============
</TABLE>
-----------------------------
(1) Variable rate security; rate as of June 30, 1996
See Notes to Financial Statements
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ANCHOR SERIES TRUST
FIXED INCOME PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 97.2% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 22.6%
Abbey National First Capital 8.20% 2004................................ $ 500,000 $ 528,215
Ahmanson (H.F.) & Co. 8.25% 2002....................................... 500,000 526,295
Bank of New York, Inc. 7.63% 2002...................................... 500,000 513,760
Banponce Financial Corp. 6.80% 2005.................................... 300,000 285,417
First Bank Systems, Inc. 8.00% 2004.................................... 500,000 518,775
First National Bank of Boston 8.00% 2004............................... 500,000 516,010
General Motors Acceptance Corp. 8.50% 2003............................. 500,000 532,415
Japan Finance Corp. Municipal Enterprises 9.13% 2000................... 400,000 430,568
KFW International Finance, Inc. 9.13% 2001............................. 400,000 438,236
Ohio National Life Insurance Co. 8.50% 2026............................ 200,000 197,662
Security Benefit Life Co. 8.75% 2016................................... 200,000 202,703
Sun Canada Financial Co. 7.25% 2015.................................... 300,000 280,530
United States Bancorp Oregon 7.50% 2026................................ 400,000 406,500
------------
5,377,086
------------
INDUSTRIAL & COMMERCIAL -- 10.7%
Bell & Howell Co. zero coupon 2005..................................... 50,000 34,250
Cablevision Systems Corp. 9.25% 2005................................... 35,000 32,550
Cincinnati Milacron, Inc. 7.88% 2000(2)................................ 150,000 150,000
Coastal Corp. 8.75% 1999............................................... 500,000 520,800
Collins & Aikman Corp. 11.50% 2006..................................... 50,000 50,625
Columbia University Trustees 8.62% 2001................................ 500,000 535,790
Comcast Corp. 9.13% 2006............................................... 50,000 47,250
Container Corp. of America 9.75% 2003.................................. 50,000 49,125
Dominion Textile USA, Inc. 9.25% 2006.................................. 20,000 19,200
Ford Motor Co. 9.00% 2001.............................................. 500,000 541,420
Fort Howard Corp. 9.25% 2001........................................... 50,000 50,000
Guitar Center Management Co., Inc. 11.00% 2006......................... 10,000 10,150
Harris Chemical North America, Inc. 10.25% 2001........................ 50,000 50,125
Hayes Wheels International, Inc. 11.00% 2006........................... 15,000 15,188
Howmet Corp. 10.00% 2003............................................... 50,000 52,625
Mesa Operating Co. 10.63% 2006......................................... 25,000 25,313
Moog, Inc. 10.00% 2006................................................. 50,000 50,000
Oregon Steel Mills, Inc. 11.00% 2003................................... 15,000 15,450
Owens & Minor, Inc. 10.88% 2006........................................ 50,000 50,687
Plains Resources, Inc. 10.25% 2006..................................... 50,000 49,375
S.D. Warren Co. 12.00% 2004............................................ 50,000 52,750
Texas Petrochemical Corp. 11.13% 2006.................................. 20,000 20,350
Transportadora De Gas 10.25% 2001...................................... 50,000 50,062
Trump Atlantic City Associates 11.25% 2006............................. 30,000 30,150
Young Broadcasting, Inc. 9.00% 2006.................................... 50,000 44,625
------------
2,547,860
------------
TELECOMMUNICATIONS -- 8.0%
360 Communications Co. 7.13% 2003...................................... 200,000 191,252
Arch Communications Group, Inc. zero coupon 2008....................... 50,000 25,750
Bellsouth Telecommunications 6.25% 2003................................ 500,000 476,695
Benedek Communications Corp. zero coupon 2006(1)(2).................... 65,000 32,825
Chancellor Broadcasting Co. 9.38% 2004................................. 10,000 9,450
Mobilemedia Corp. 9.38% 2007........................................... 50,000 44,750
</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS (continued)
News America Holdings, Inc. 9.25% 2013................................. $ 200,000 $ 217,378
Tele-Communications, Inc. 9.80% 2012................................... 350,000 378,168
Time Warner, Inc. 9.13% 2013........................................... 450,000 469,971
World Color Press, Inc. 9.13% 2003..................................... 50,000 49,000
------------
1,895,239
------------
TRANSPORTATION -- 3.9%
CSX Corp. 9.50% 2000................................................... 500,000 543,665
United Air Lines 7.27% 2013............................................ 400,000 378,712
------------
922,377
------------
U.S. GOVERNMENT & AGENCIES -- 46.9%
Federal Home Loan Mortgage Corp. 6.50% 2024............................ 875,316 822,525
Federal Home Loan Mortgage Corp. 7.00% 2025 - 2026..................... 1,479,058 1,424,052
Federal Home Loan Participation 7.50% 2007............................. 710,689 719,636
Federal Home Loan Participation 9.75% 2002............................. 458,993 505,034
Federal Home Loan Participation 11.00% 2000............................ 10,862 11,473
Government National Mortgage Association 7.00% 2023.................... 541,015 521,403
Government National Mortgage Association 7.50% 2022 - 2024............. 1,929,537 1,909,947
Government National Mortgage Association 10.00% 2000................... 30,943 32,587
Government National Mortgage Association 11.25% 1998................... 6,598 6,945
Government National Mortgage Association 13.25% 1999................... 1,750 1,843
United States Treasury Bonds 10.75% 2003............................... 1,550,000 1,891,248
United States Treasury Bonds 12.00% 2013............................... 1,150,000 1,621,144
United States Treasury Notes 6.25% 2003................................ 1,200,000 1,178,808
United States Treasury Notes 7.13% 1999................................ 500,000 510,935
------------
11,157,580
------------
UTILITIES -- 5.1%
El Paso Electric Co. 8.90% 2006........................................ 50,000 49,125
Hydro Quebec 8.05% 2024................................................ 450,000 477,018
Niagara Mohawk Power Corp. 5.88% 2002.................................. 750,000 688,222
------------
1,214,365
------------
TOTAL INVESTMENT SECURITIES (cost $23,385,584)......................... 23,114,507
------------
<CAPTION>
REPURCHASE AGREEMENT -- 1.1%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $270,000)...................................................... 270,000 270,000
------------
TOTAL INVESTMENTS --
(cost $23,655,584) 98.3% 23,384,507
Other assets less liabilities -- 1.7 398,809
------ ------------
NET ASSETS -- 100.0% $23,783,316
====== ============
</TABLE>
-----------------------------
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Fair valued security; see Note 2
See Notes to Financial Statements
- ---------------------
10
<PAGE> 12
- ---------------------
ANCHOR SERIES TRUST
GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 98.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 9.0%
Apparel & Textiles -- 0.6%
Donna Karan International, Inc. ...................................... 5,800 $ 162,400
Nine West Group, Inc. ................................................ 34,000 1,738,250
Housing -- 0.4%
Juno Lighting, Inc. .................................................. 82,000 1,394,000
Retail -- 8.0%
Arbor Drugs, Inc. .................................................... 81,000 1,690,875
Barnes & Noble, Inc.+................................................. 75,000 2,690,625
Gymboree Corp.+....................................................... 27,000 823,500
Home Depot, Inc. ..................................................... 85,000 4,590,000
May Department Stores Co. ............................................ 95,000 4,156,250
Office Max, Inc. ..................................................... 35,000 835,625
Rite Aid Corp. ....................................................... 100,000 2,975,000
Saks Holdings, Inc. .................................................. 65,100 2,221,538
Talbots, Inc. ........................................................ 57,000 1,845,375
Wal-Mart Stores, Inc. ................................................ 160,000 4,060,000
-------------
29,183,438
-------------
CONSUMER STAPLES -- 8.2%
Food, Beverage & Tobacco -- 4.7%
Canandaigua Wine Co., Inc., Class A+.................................. 43,600 1,308,000
PepsiCo, Inc. ........................................................ 195,000 6,898,125
Philip Morris Cos., Inc. ............................................. 32,000 3,328,000
Sara Lee Corp. ....................................................... 120,600 3,904,425
Household Products -- 3.5%
Bush Boake Allen, Inc.+............................................... 61,000 1,326,750
Kimberly-Clark Corp. ................................................. 37,800 2,920,050
Procter & Gamble Co. ................................................. 75,000 6,796,875
-------------
26,482,225
-------------
ENERGY -- 5.4%
Energy Services -- 0.8%
Schlumberger Ltd. .................................................... 30,000 2,527,500
Energy Sources -- 4.6%
Amoco Corp. .......................................................... 77,000 5,572,875
Barrett Resources Corp.+.............................................. 40,000 1,190,000
Burlington Resources, Inc. ........................................... 64,000 2,752,000
Unocal Corp. ......................................................... 165,000 5,568,750
-------------
17,611,125
-------------
FINANCE -- 14.6%
Banks -- 5.4%
Associated Banc Corp. ................................................ 32,000 1,240,000
Bancorp Hawaii, Inc. ................................................. 65,000 2,340,000
Citicorp.............................................................. 10,400 859,300
First Commercial Corp. ............................................... 37,450 1,151,588
Morgan (J.P.) & Co., Inc. ............................................ 36,000 3,046,500
NationsBank Corp. .................................................... 44,500 3,676,812
State Street Boston Corp. ............................................ 105,000 5,355,000
</TABLE>
---------------------
11
<PAGE> 13
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 4.8%
American Express Co. ................................................. 90,000 $ 4,016,250
Federal National Mortgage Association................................. 260,000 8,710,000
Morgan Stanley Group, Inc. ........................................... 56,000 2,751,000
Insurance -- 4.4%
Allstate Corp. ....................................................... 40,000 1,825,000
American International Group, Inc. ................................... 52,500 5,177,812
American Reinsurance Corp. ........................................... 37,000 1,660,375
Frontier Insurance Group, Inc. ....................................... 46,200 1,593,900
Travelers, Inc. ...................................................... 90,000 4,106,250
-------------
47,509,787
-------------
HEALTHCARE -- 10.6%
Drugs -- 6.7%
Merck & Co., Inc. .................................................... 35,000 2,261,875
Pfizer, Inc. ......................................................... 70,000 4,996,250
Rhone-Poulenc Rorer, Inc. ............................................ 110,000 7,383,750
Warner-Lambert Co. ................................................... 48,000 2,640,000
Zeneca Group PLC ADR.................................................. 70,000 4,707,500
Health Services -- 1.1%
Beverly Enterprises, Inc.+............................................ 195,000 2,340,000
Columbia/HCA Healthcare Corp. ........................................ 23,000 1,227,625
Medical Products -- 2.8%
Abbott Laboratories................................................... 110,000 4,785,000
Biomet, Inc.+......................................................... 85,000 1,221,875
Life Technologies, Inc. .............................................. 50,000 1,575,000
Nellcor Puritan Bennett, Inc. ........................................ 30,000 1,455,000
-------------
34,593,875
-------------
INDUSTRIAL & COMMERCIAL -- 10.7%
Aerospace & Defense -- 1.2%
Boeing Co. ........................................................... 30,000 2,613,750
United Technologies Corp. ............................................ 11,100 1,276,500
Business Services -- 2.7%
Dames & Moore, Inc. .................................................. 85,000 1,030,625
DST Systems, Inc.+.................................................... 54,500 1,744,000
Foster Wheeler Corp. ................................................. 82,000 3,679,750
G & K Services, Inc. ................................................. 65,000 1,852,500
Tetra Tech, Inc. ..................................................... 31,625 632,500
Electrical Equipment -- 2.6%
General Electric Co. ................................................. 33,000 2,854,500
Hubbell, Inc. ........................................................ 52,000 3,445,000
Littelfuse, Inc. ..................................................... 55,000 2,062,500
Machinery -- 2.7%
Caterpillar, Inc. .................................................... 35,000 2,371,250
Donaldson Co., Inc. .................................................. 67,000 1,725,250
Minnesota Mining & Manufacturing Co. ................................. 50,000 3,450,000
MSC Industrial Direct, Inc. .......................................... 40,000 1,290,000
Transportation -- 1.5%
Air Express International Corp. ...................................... 64,100 1,810,825
Airborne Freight Corp. ............................................... 63,000 1,638,000
Union Pacific Corp. .................................................. 20,000 1,397,500
-------------
34,874,450
-------------
</TABLE>
- ---------------------
12
<PAGE> 14
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 10.3%
Broadcasting & Media -- 5.0%
Advo, Inc. ........................................................... 90,000 $ 933,750
Comcast Corp. ........................................................ 125,000 2,312,500
Dun & Bradstreet Corp. ............................................... 41,000 2,562,500
Gannett Co., Inc. .................................................... 55,000 3,891,250
Viacom, Inc., Class B+................................................ 171,537 6,668,501
Entertainment Products -- 1.8%
Coleman Co., Inc. .................................................... 44,000 1,864,500
Harley-Davidson, Inc.+................................................ 40,000 1,645,000
Speedway Motorsports, Inc. ........................................... 95,600 2,449,750
Leisure & Tourism -- 3.5%
Doubletree Corp.+..................................................... 40,000 1,420,000
Landry's Seafood Restaurants, Inc. ................................... 54,000 1,336,500
McDonald's Corp. ..................................................... 90,000 4,207,500
Quality Dining, Inc.+................................................. 22,000 720,500
Southwest Airlines Co. ............................................... 125,000 3,640,625
-------------
33,652,876
-------------
INFORMATION TECHNOLOGY -- 20.7%
Business Services -- 0.4%
Metromail Corp. ...................................................... 55,000 1,230,625
Communication Equipment -- 4.4%
Cisco Systems, Inc.+.................................................. 130,000 7,361,250
General Instrument Corp.+............................................. 125,000 3,609,375
Nokia Corp. ADR....................................................... 63,400 2,345,800
Teleport Communications Group......................................... 49,250 941,906
Computers & Business Equipment -- 4.6%
Adaptec, Inc.+........................................................ 13,800 653,775
COMPAQ Computer Corp.+................................................ 120,000 5,910,000
Hewlett-Packard Co. .................................................. 85,000 8,468,125
Electronics -- 3.1%
AMP, Inc. ............................................................ 100,000 4,012,500
Dallas Semiconductor Corp. ........................................... 80,000 1,450,000
Intel Corp. .......................................................... 35,000 2,570,312
Maxim Integrated Products, Inc.+...................................... 71,000 1,939,188
Software -- 8.2%
American Management Systems, Inc. .................................... 33,000 965,250
Automatic Data Processing, Inc. ...................................... 112,000 4,326,000
BISYS Group, Inc.+.................................................... 55,000 2,076,250
BMC Software, Inc.+................................................... 52,000 3,107,000
Checkpoint Systems, Inc. ............................................. 4,800 115,200
Cognos, Inc. ......................................................... 121,200 2,787,600
First Data Corp. ..................................................... 36,000 2,866,500
Microsoft Corp.+...................................................... 40,000 4,805,000
Policy Management Systems Corp.+...................................... 52,000 2,600,000
Sterling Software, Inc.+.............................................. 26,000 2,002,000
Systems & Computer Technology Corp.+.................................. 90,000 1,305,000
-------------
67,448,656
-------------
</TABLE>
---------------------
13
<PAGE> 15
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 5.2%
Chemicals -- 3.6%
Air Products & Chemicals, Inc. ....................................... 60,000 $ 3,465,000
Dow Chemical Co. ..................................................... 27,100 2,059,600
Engelhard Corp. ...................................................... 149,925 3,448,275
Minerals Technologies, Inc. .......................................... 30,000 1,027,500
Schulman A., Inc. .................................................... 71,000 1,739,500
Paper Products -- 1.6%
Bemis Co., Inc. ...................................................... 60,000 2,100,000
International Paper Co. .............................................. 80,000 2,950,000
-------------
16,789,875
-------------
UTILITIES -- 4.2%
Telephone -- 4.2%
AT&T Corp. ........................................................... 90,000 5,580,000
Century Telephone Enterprises, Inc. .................................. 44,000 1,402,500
MCI Communications Corp. ............................................. 120,000 3,075,000
SBC Communications, Inc. ............................................. 75,000 3,693,750
-------------
13,751,250
-------------
TOTAL INVESTMENT SECURITIES (cost $251,261,682)....................... 321,897,557
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 2.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $6,565,000)................................................... $6,565,000 6,565,000
-------------
TOTAL INVESTMENTS --
(cost $257,826,682) 100.9% 328,462,557
Liabilities in excess of other assets -- (0.9) (2,888,250)
----- -------------
NET ASSETS -- 100.0% $325,574,307
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR - American Depositary Receipts
See Notes to Financial Statements
- ---------------------
14
<PAGE> 16
- ---------------------
ANCHOR SERIES TRUST
HIGH YIELD PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 95.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CABLE -- 3.7%
Cablevision Systems Corp. 9.25% 2005................................... $ 350,000 $ 325,500
Cablevision Systems Corp. 9.88% 2006................................... 145,000 139,925
Comcast Corp. 9.38% 2005............................................... 350,000 336,875
Marcus Cable Operating Co. L.P. zero coupon 2004(1).................... 350,000 250,250
Tele-Communications, Inc. 9.25% 2023................................... 250,000 246,440
Videotron Ltd. 10.25% 2002............................................. 250,000 257,500
------------
1,556,490
------------
CHEMICALS -- 4.9%
Agriculture Minerals & Chemicals 10.75% 2003........................... 500,000 525,000
Arcadian Partners L.P. 10.75% 2005..................................... 250,000 270,000
General Chemical Corp. 9.25% 2003...................................... 250,000 247,500
Harris Chemical North America, Inc. 10.25% 2001........................ 150,000 150,375
PMI Acquisition Corp. 10.25% 2003...................................... 350,000 343,000
Rexene Corp. 11.75% 2004............................................... 40,000 41,400
Texas Petrochemical Corp. 11.13% 2006*................................. 90,000 91,575
Viridian, Inc. 10.50% 2014............................................. 350,000 365,750
------------
2,034,600
------------
COMMUNICATIONS & MEDIA -- 13.5%
Arch Communications Group, Inc. zero coupon 2008....................... 350,000 180,250
Benedek Communications Corp. zero coupon 2006*(1)(3)................... 550,000 277,750
Chancellor Broadcasting Co. 9.38% 2004................................. 500,000 472,500
EZ Communications, Inc. 9.75% 2005..................................... 250,000 237,500
Granite Broadcasting Corp. 10.38% 2005................................. 350,000 343,000
Granite Broadcasting Corp. 12.75% 2002................................. 350,000 383,687
JCAC, Inc. 10.13% 2006................................................. 125,000 123,750
Lenfest Communications, Inc. 8.38% 2005................................ 250,000 228,125
Mobilemedia Corp. 9.38% 2007........................................... 350,000 313,250
Paging Network, Inc. 10.13% 2007....................................... 200,000 196,500
Plitt Theatres, Inc. 10.88% 2004....................................... 150,000 151,500
Pronet, Inc. 10.88% 2006............................................... 250,000 237,344
Rifkin Acquisitions Participation L.P. 11.13% 2006..................... 350,000 342,125
Teleport Communications Group zero coupon 2007......................... 175,000 101,938
Turner Broadcasting Systems, Inc. 8.40% 2024........................... 500,000 457,455
Western Wireless Corp. 10.50% 2006..................................... 100,000 99,000
World Color Press, Inc. 9.13% 2003..................................... 750,000 735,000
Young Broadcasting, Inc. 9.00% 2006.................................... 250,000 223,125
Young Broadcasting, Inc. 11.75% 2004................................... 500,000 525,000
------------
5,628,799
------------
CONSUMER STAPLES -- 4.2%
American Safety Razor Co. 9.88% 2005................................... 150,000 151,500
Gruma SA de CV 9.75% 1998.............................................. 250,000 254,062
Remington Product Co. 11.00% 2006*..................................... 250,000 249,063
Sweetheart Cup, Inc. 10.50% 2003....................................... 600,000 594,000
Westpoint Stevens, Inc. 8.75% 2001..................................... 500,000 493,750
------------
1,742,375
------------
</TABLE>
---------------------
15
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 5.2%
Energy Ventures, Inc. 10.25% 2004...................................... $ 150,000 $ 154,875
Mesa Operating Co. zero coupon 2006.................................... 350,000 205,187
Mesa Operating Co. 10.63% 2006......................................... 75,000 75,938
Plains Resources, Inc. 10.25% 2006*.................................... 500,000 493,750
Santa Fe Energy Resources, Inc. 11.00% 2004............................ 500,000 535,000
Seagull Energy Corp. 8.63% 2005........................................ 250,000 235,000
Transpatadora De Gas 10.25% 2001....................................... 250,000 250,312
YPF Sociedad Anonima 8.00% 2004........................................ 250,000 221,563
------------
2,171,625
------------
FINANCE -- 3.1%
Dime Bancorp, Inc. 10.50% 2005......................................... 500,000 540,000
First Nationwide Parent Holdings 12.50% 2003........................... 350,000 365,750
Imperial Credit Industries, Inc. 9.75% 2004............................ 400,000 372,000
------------
1,277,750
------------
FOOD & LODGING -- 0.6%
Specialty Equipment Cos., Inc. 11.38% 2003............................. 250,000 258,125
------------
GAMING -- 0.4%
Trump Atlantic City Associates 11.25% 2006............................. 150,000 150,750
------------
GROCERY -- 3.1%
Big V Supermarkets, Inc. 11.00% 2004................................... 500,000 462,500
Bruno's, Inc. 10.50% 2005.............................................. 250,000 246,562
Dominicks Finer Foods, Inc. 10.88% 2005................................ 225,000 236,813
Smiths Food & Drug Centers, Inc. 11.25% 2007........................... 350,000 352,625
------------
1,298,500
------------
HEALTHCARE -- 5.3%
Beverly Enterprises, Inc. 9.00% 2006................................... 250,000 231,250
Dade International, Inc. 11.13% 2006*.................................. 190,000 196,650
Integrated Health Services, Inc. 10.25% 2006........................... 250,000 247,500
OrNda Healthcorp 11.38% 2004........................................... 500,000 551,250
Owens & Minor, Inc. 10.88% 2006........................................ 350,000 354,813
Quorum Health Group, Inc. 8.75% 2005................................... 175,000 171,500
Tenet Healthcare Corp. 9.63% 2002...................................... 325,000 345,312
Tenet Healthcare Corp. 10.13% 2005..................................... 100,000 105,500
------------
2,203,775
------------
INDUSTRIAL & COMMERCIAL -- 24.7%
American Standard, Inc. zero coupon 2005(1)............................ 500,000 436,250
Associated Materials, Inc. 11.50% 2003................................. 235,000 201,512
Bell & Howell Co. zero coupon 2005..................................... 1,000,000 685,000
Bell & Howell Co. 9.25% 2000........................................... 250,000 252,500
Collins & Aikman Corp. 11.50% 2006..................................... 500,000 506,250
Coltec Industries 9.75% 2000........................................... 375,000 382,500
Digital Equipment Corp. 7.75% 2023..................................... 250,000 226,020
Dominion Textile USA, Inc. 8.88% 2003.................................. 150,000 144,000
Dominion Textile USA, Inc. 9.25% 2006.................................. 50,000 48,000
EnviroSource, Inc. 9.75% 2003.......................................... 250,000 227,500
Essex Group, Inc. 10.00% 2003.......................................... 500,000 507,500
Exide Corp. 10.75% 2002................................................ 50,000 51,000
Graphic Controls Corp. 12.00% 2005(3).................................. 225,000 238,500
Great Lakes Carbon Corp. 10.00% 2006................................... 500,000 510,000
Hayes Wheels International, Inc. 11.00% 2006........................... 135,000 136,688
Howmet Corp. 10.00% 2003*.............................................. 500,000 526,250
Interlake Corp. 12.13% 2002*........................................... 500,000 500,000
K & F Industries, Inc. 11.88% 2003..................................... 150,000 160,500
K & F Industries, Inc. 13.75% 2001..................................... 407,000 423,280
Lear Seating Corp. 8.25% 2002.......................................... 250,000 237,500
Moog, Inc. 10.00% 2006*................................................ 500,000 500,000
</TABLE>
- ---------------------
16
<PAGE> 18
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Northrop Grumman Corp. 9.38% 2024...................................... $ 250,000 $ 268,782
Overhead Door Corp. 12.25% 2000(3)..................................... 250,000 252,500
Portola Packaging, Inc. 10.75% 2005.................................... 150,000 152,625
Rohr, Inc. 11.63% 2003................................................. 500,000 542,500
Silgan Corp. 11.75% 2002............................................... 150,000 152,250
Silgan Holdings, Inc. 13.25% 2002(2)................................... 83,000 84,038
UCAR Global Enterprises, Inc. 12.00% 2005.............................. 200,000 227,000
Unisys Corp. 12.00% 2003*.............................................. 500,000 511,250
Walbro Corp. 9.88% 2005................................................ 250,000 245,000
Westinghouse Electric Corp. 8.88% 2001................................. 200,000 204,006
Wyman-Gordon Co. 10.75% 2003........................................... 750,000 780,000
------------
10,320,701
------------
METALS & MINERALS -- 9.1%
A.K. Steel Corp. 10.75% 2004........................................... 350,000 377,125
Armco, Inc. 9.38% 2000................................................. 750,000 727,500
Bethlehem Steel Corp. 10.38% 2003...................................... 500,000 530,000
Haynes International, Inc. 13.50% 1999................................. 250,000 253,750
Magma Copper Co. 12.00% 2001........................................... 250,000 269,705
Ns Group, Inc. 13.50% 2003............................................. 365,000 350,400
Oregon Steel Mills, Inc. 11.00% 2003................................... 145,000 149,350
S.D. Warren Co. 12.00% 2004............................................ 275,000 290,125
Weirton Steel Corp. 10.88% 1999........................................ 300,000 313,500
Weirton Steel Corp. 11.38% 2004*....................................... 200,000 197,000
Wheeling Pittsburgh Corp. 9.38% 2003................................... 350,000 325,500
------------
3,783,955
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.9%
Republic of Argentina 8.38% 2003....................................... 250,000 217,500
Republic of Brazil 6.00% 2013.......................................... 250,000 157,344
------------
374,844
------------
PAPER PRODUCTS -- 8.3%
Container Corp. of America 9.75% 2003.................................. 500,000 491,250
Container Corp. of America 11.25% 2004................................. 450,000 464,625
Fort Howard Corp. 9.25% 2001........................................... 750,000 750,000
Rainy River Forest Products, Inc. 10.75% 2001.......................... 250,000 261,250
Repap New Brunswick, Inc. 9.88% 2000................................... 500,000 492,500
Repap Wisconsin, Inc. 9.25% 2002....................................... 250,000 233,750
Stone Container Corp. 11.88% 1998...................................... 500,000 520,000
Tembec Finance Corp. 9.88% 2005........................................ 250,000 232,500
------------
3,445,875
------------
REAL ESTATE -- 0.8%
Webb (Del) Corp. 9.00% 2006............................................ 350,000 315,000
------------
RETAIL -- 0.9%
Brylane Capital Corp. 10.00% 2003...................................... 350,000 339,500
Guitar Center Management Co., Inc. 11.00% 2006*........................ 50,000 50,750
------------
390,250
------------
SERVICES -- 0.8%
Penda Corp. 10.75% 2004(3)............................................. 375,000 345,937
------------
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 5.5%
Cabot Safety Acquisition Corp. 12.50% 2005............................. $ 350,000 $ 386,750
El Paso Electric Co. 8.90% 2006........................................ 500,000 491,250
First PV Funding Corp. 10.15% 2016..................................... 350,000 368,375
Telefonica de Argentina SA 11.88% 2004................................. 250,000 270,000
Texas-New Mexico Power Co. 10.75% 2003................................. 500,000 521,250
Transportadora De Gas Delaware 7.75% 1998.............................. 250,000 244,219
------------
2,281,844
------------
TOTAL BONDS & NOTES (cost $39,126,622)................................. 39,581,195
------------
<CAPTION>
COMMON STOCK -- 0.1% SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 0.1%
Triangle Wire And Cable, Inc.+(3)(4) (cost $330,000)................... 31,667 47,500
------------
<CAPTION>
PREFERRED STOCK -- 1.5%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMUNICATIONS & MEDIA -- 0.5%
Benedek Communications Corp............................................ 200 200,000
------------
FINANCE -- 0.6%
California Federal Bank Los Angeles.................................... 2,500 273,750
------------
MATERIALS -- 0.4%
BCP Essex Holdings, Preferred Series B................................. 6,111 153,539
------------
TOTAL PREFERRED STOCK (cost $598,664).................................. 627,289
------------
TOTAL INVESTMENT SECURITIES (cost $40,055,286)......................... 40,255,984
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 1.7% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $700,000)...................................................... $ 700,000 700,000
------------
TOTAL INVESTMENTS --
(cost $40,755,286) 98.3% 40,955,984
Other assets less liabilities -- 1.7 728,838
------ ------------
NET ASSETS -- 100.0% $41,684,822
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Variable rate security; rate as of June 30, 1996
(3) Fair valued security; see Note 2
(4) At June 30, 1996 the Portfolio held restricted securities
amounting to 0.1% of net assets. 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 6/30/96
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Triangle Wire and Cable, Inc. 3/21/94 10,556 $ 10.72 1.50
Triangle Wire and Cable, Inc. 3/24/94 21,111 10.27 1.50
</TABLE>
See Notes to Financial Statements
- ---------------------
18
<PAGE> 20
- ---------------------
ANCHOR SERIES TRUST
STRATEGIC MULTI-ASSET
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 40.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION -- 14.3%
Apparel & Textiles -- 0.4%
Donna Karan International, Inc. ....................................... 200 $ 5,600
Fila Holding S.p.A., ADR............................................... 900 77,625
Mossimo, Inc.+......................................................... 1,500 59,813
Tommy Hilfiger Corp.+.................................................. 1,700 91,162
Broadcasting & Media -- 4.5%
American Radio Systems Corp., Class A+................................. 2,000 86,000
Camwest Global Communications.......................................... 1,500 40,875
Central European Media Enterprises, Ltd., Class A...................... 5,000 125,000
Chancellor Broadcasting Corp.+......................................... 2,300 71,875
E-Z Communications, Inc.+.............................................. 7,000 166,250
Emmis Broadcasting Corp., Class A+..................................... 2,000 100,000
Evergreen Media Corp.+................................................. 2,500 106,875
Gaylord Entertainment Co., Class A..................................... 3,008 84,976
International Cabletel, Inc.+.......................................... 4,000 118,000
Jacor Communications, Inc.+............................................ 8,000 247,000
LodgeNet Entertainment Corp.+.......................................... 8,000 110,000
MobileMedia Corp.+..................................................... 4,500 54,562
Providence Journal Co. ................................................ 7,000 107,625
Saga Communications, Inc., Class A+.................................... 7,068 152,845
Scholastic Corp.+...................................................... 500 31,000
Scripps (E.W.) Co., Class A............................................ 1,500 69,937
SFX Broadcasting, Inc.+................................................ 5,500 214,500
Tele-Communications Liberty Media Group+............................... 3,000 79,500
Valuevision International, Inc., Class A+.............................. 5,500 38,156
Viacom, Inc., Class A+................................................. 320 12,200
Viacom, Inc., Class B+................................................. 9,224 358,583
Vodafone Group PLC ADR................................................. 1,500 55,313
Westwood One, Inc.+.................................................... 5,000 76,250
Young Broadcasting, Inc., Class A+..................................... 3,500 133,875
Business Services -- 0.1%
DST Systems, Inc.+..................................................... 2,400 76,800
Communication Equipment -- 0.5%
Cisco Systems, Inc.+................................................... 1,000 56,625
FORE Systems, Inc.+.................................................... 3,000 108,375
General Instrument Corp.+.............................................. 1,000 28,875
Nokia Corp. ADR........................................................ 3,000 111,000
Computers & Business Equipment -- 0.2%
Adaptec, Inc.+......................................................... 1,000 47,375
Oak Industries, Inc. .................................................. 1,100 32,587
Plaintree Systems, Inc.+............................................... 5,000 27,500
Radius, Inc. .......................................................... 277 762
</TABLE>
---------------------
19
<PAGE> 21
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION (continued)
Drugs -- 1.0%
Alpharma, Inc., Class A................................................ 4,500 $ 89,437
Eisai Co. ............................................................. 3,100 58,675
Genetics Institute, Inc. .............................................. 700 44,450
Immunex Corp.+......................................................... 9,000 122,625
Rhone-Poulenc Rorer, Inc. ............................................. 3,000 201,375
Zeneca Group PLC ADR................................................... 4,500 99,519
Electrical Equipment -- 0.1%
York International Corp. .............................................. 1,000 51,751
Energy Services -- 0.4%
ENSCO International, Inc.+............................................. 2,000 65,000
Input/Output, Inc.+.................................................... 2,000 64,750
Transocean Drilling AS................................................. 3,000 77,900
Energy Sources -- 0.9%
Alberta Energy Ltd. ................................................... 5,000 93,750
Noble Affiliates, Inc. ................................................ 3,000 113,250
Total Petroleum North America Ltd. .................................... 2,700 26,325
Union Pacific Resources Group, Inc. ................................... 1,800 48,150
Unocal Corp. .......................................................... 4,000 135,000
Vastar Resources, Inc. ................................................ 2,500 93,437
Entertainment Products -- 0.1%
Philips Electronics NV ADR............................................. 1,500 48,938
Financial Services -- 0.2%
Imperial Credit Industries, Inc.+...................................... 4,500 136,125
Food, Beverage & Tobacco -- 0.3%
Canandaigua Wine Co., Inc., Class A+................................... 4,000 120,000
Pete's Brewing Co.+.................................................... 4,700 70,500
Health Services -- 0.8%
American Medical Response, Inc.+....................................... 2,000 70,500
Beverly Enterprises, Inc.+............................................. 3,000 36,000
FHP International Corp.+............................................... 2,500 68,438
Grancare, Inc.+........................................................ 4,000 79,500
IDX Systems Corp.+..................................................... 1,500 58,500
Magellan Health Services, Inc. ........................................ 3,500 75,250
Vencor, Inc.+.......................................................... 3,500 106,750
Household Products -- 0.1%
Revlon, Inc., Class A+................................................. 2,500 72,813
Insurance -- 0.9%
Allstate Corp. ........................................................ 2,500 114,062
American Reinsurance Corp. ............................................ 7,000 314,125
Home State Holdings, Inc.+............................................. 4,400 36,850
Transatlantic Holdings, Inc. .......................................... 900 63,113
Leisure & Tourism -- 0.2%
America West Airlines, Inc., Class B+.................................. 3,500 77,000
Planet Hollywood International, Inc. .................................. 200 5,400
Royal Caribbean Cruises Ltd. .......................................... 2,000 57,000
Machinery -- 0.3%
Northrop Grumman Corp. ................................................ 1,000 68,125
Precision Castparts Corp. ............................................. 2,200 94,600
Materials -- 0.1%
UCAR International, Inc.+.............................................. 2,000 83,250
</TABLE>
- ---------------------
20
<PAGE> 22
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION (continued)
Medical Products -- 0.3%
Haemonetics Corp. Massachusetts+....................................... 3,500 $ 63,875
Ventritex Inc.+........................................................ 5,000 85,625
Metals & Minerals -- 0.3%
Titanium Metals Corp. ................................................. 4,000 103,500
USINOR SACILOR......................................................... 3,300 47,637
Retail -- 0.4%
Bed Bath & Beyond, Inc.+............................................... 1,000 26,750
Gymboree Corp.+........................................................ 2,500 76,250
Mercantile Stores Co., Inc. ........................................... 1,600 93,800
Saks Holdings, Inc. ................................................... 100 3,413
Sports Authority, Inc.+................................................ 1,500 49,125
Software -- 1.6%
BISYS Group, Inc.+..................................................... 4,500 169,875
BMC Software, Inc.+.................................................... 2,500 149,375
Boole & Babbage, Inc. ................................................. 1,500 36,000
Cognos, Inc.+.......................................................... 6,000 138,000
CompuWare Corp.+....................................................... 1,000 39,500
Parametric Technology Corp.+........................................... 2,000 86,750
Policy Management Systems Corp.+....................................... 1,500 75,000
Spectrum Holobyte, Inc.+............................................... 13,000 74,750
Sterling Software, Inc.+............................................... 2,000 154,000
Systems & Computer Technology Corp.+................................... 1,000 14,500
Transportation -- 0.6%
AMR Corp.+............................................................. 1,500 136,500
Continental Airlines, Inc., Class B.................................... 1,500 92,625
Pittston Co. .......................................................... 1,800 38,925
Werner Enterprises, Inc. .............................................. 3,000 78,000
------------
8,441,304
------------
CORE EQUITY -- 26.4%
Aerospace & Military Technology -- 0.4%
Boeing Co. ............................................................ 3,000 261,375
Banks -- 1.6%
First Bank System, Inc. ............................................... 6,000 348,000
First Union Corp. ..................................................... 5,500 334,812
Wachovia Corp. ........................................................ 5,700 249,375
Broadcasting & Media -- 1.4%
Comcast Corp., Special Class A......................................... 12,500 231,250
Gannett Co., Inc. ..................................................... 5,000 353,750
Gaylord Entertainment Co., Class A..................................... 8,263 233,430
Chemicals -- 1.3%
Air Products & Chemicals, Inc. ........................................ 5,500 317,625
Dow Chemical Co. ...................................................... 3,000 228,000
Engelhard Corp. ....................................................... 9,000 207,000
Communication Equipment -- 1.3%
Cisco Systems, Inc. ................................................... 5,000 283,125
General Instrument Corp. .............................................. 8,000 231,000
Motorola, Inc. ........................................................ 4,000 251,500
Computers & Business Equipment -- 0.5%
Hewlett-Packard Co. ................................................... 3,000 298,875
</TABLE>
---------------------
21
<PAGE> 23
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORE EQUITY (continued)
Drugs -- 2.7%
Genetics Institute, Inc.+.............................................. 3,500 $ 222,250
Perrigo Co.+........................................................... 20,000 225,000
Pfizer, Inc. .......................................................... 5,000 356,875
Warner-Lambert Co. .................................................... 4,600 253,000
Zeneca Group PLC ADR................................................... 7,500 504,375
Electrical Equipment -- 1.1%
General Electric Co. .................................................. 5,000 432,500
York International Corp. .............................................. 4,500 232,875
Electronics -- 0.4%
AMP, Inc. ............................................................. 5,500 220,688
Energy Services -- 1.4%
Dresser Industries, Inc. .............................................. 7,500 221,250
Schlumberger Ltd. ADR.................................................. 3,000 252,750
Unocal Corp. .......................................................... 10,000 337,500
Energy Sources -- 1.3%
Amoco Corp. ........................................................... 5,000 361,875
Exxon Corp. ........................................................... 4,500 390,937
Financial Services -- 0.9%
American Express Co. .................................................. 6,000 267,750
Federal National Mortgage Association.................................. 8,000 268,000
Food, Beverage & Tobacco -- 0.4%
Sara Lee Corp. ........................................................ 6,500 210,438
Forest Products -- 0.5%
International Paper Co. ............................................... 8,000 295,000
Household Products -- 2.2%
Colgate-Palmolive Co. ................................................. 3,000 254,250
Gillette Co. .......................................................... 5,000 311,875
Kimberly-Clark Corp. .................................................. 3,000 231,750
Procter & Gamble Co. .................................................. 3,200 290,000
Revlon, Inc., Class A+................................................. 8,200 238,824
Insurance -- 1.3%
ACE Ltd. .............................................................. 5,000 235,000
American International Group, Inc. .................................... 4,500 443,813
American Reinsurance Corp. ............................................ 2,000 89,750
Leisure & Tourism -- 0.6%
McDonald's Corp. ...................................................... 7,000 327,250
Machinery -- 0.3%
Illinois Tool Works, Inc. ............................................. 3,000 202,875
Medical Products -- 1.0%
Abbott Laboratories.................................................... 9,000 391,500
Biomet, Inc.+.......................................................... 15,000 215,625
Retail -- 1.9%
Home Depot, Inc. ...................................................... 4,000 216,000
May Department Stores Co. ............................................. 6,500 284,375
Talbots, Inc. ......................................................... 8,000 259,000
Wal-Mart Stores, Inc. ................................................. 14,000 355,250
</TABLE>
- ---------------------
22
<PAGE> 24
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORE EQUITY (continued)
Software -- 1.8%
Automatic Data Processing, Inc. ....................................... 8,000 $ 309,000
BMC Software, Inc. .................................................... 5,000 298,750
First Data Corp. ...................................................... 3,000 238,875
Microsoft Corp.+....................................................... 2,000 240,250
Telephone -- 1.0%
AT&T Corp. ............................................................ 6,600 409,200
MCI Communications Corp. .............................................. 8,000 205,000
Transportation -- 1.1%
AMR Corp.+............................................................. 2,000 182,000
Canadian Pacific Ltd. ................................................. 12,000 264,000
Conrail, Inc. ......................................................... 3,000 199,125
------------
15,575,517
------------
TOTAL COMMON STOCK (cost $16,948,751).................................. 24,016,821
------------
<CAPTION>
PREFERRED STOCK -- 0.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL APPRECIATION -- 0.0%
Broadcasting & Media -- 0.0%
News Corp., Ltd. ADR................................................... 2,000 40,250
BRAZIL -- 0.1%
Energy Sources -- 0.1%
Petroleo Brasileiros SA................................................ 350,000 43,044
GERMANY -- 0.2%
Retail -- 0.2%
Hornbach Holding AG.................................................... 1,300 112,003
------------
TOTAL PREFERRED STOCK (cost $163,079).................................. 195,297
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 24.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMUNICATIONS & MEDIA -- 0.7%
360 Communications 7.50% 2006.......................................... $ 100,000 94,878
Arch Communications Group, Inc. zero coupon 2008....................... 100,000 51,500
Benedek Communications Corp. zero coupon 2006(1)(2).................... 165,000 83,325
Chancellor Broadcasting Co. 9.38% 2004................................. 15,000 14,175
Coltec Industries 9.75% 1999........................................... 125,000 127,500
Rifkin Acquisitions L.P. 11.13% 2006 50,000 48,875
------------
420,253
------------
CONSUMER STAPLES -- 0.3%
Sweetheart Cup, Inc. 10.50% 2003....................................... 200,000 198,000
------------
</TABLE>
---------------------
23
<PAGE> 25
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 1.0%
Mesa Operating Co. 10.63% 2006......................................... $ 25,000 $ 25,312
Phillips Petroleum Co. 9.18% 2021...................................... 250,000 268,350
Plains Resources, Inc. 10.25% 2006..................................... 45,000 44,438
Santa Fe Energy Resources, Inc. 11.00% 2004............................ 150,000 160,500
Transpatadora De Gas 10.25% 2001....................................... 100,000 100,125
------------
598,725
------------
FINANCE -- 0.4%
Dime Bancorp 10.50% 2005............................................... 100,000 108,000
First Nationwide Parent Holdings 12.50% 2003........................... 100,000 104,500
------------
212,500
------------
HEALTHCARE -- 0.4%
OrNda Healthcorp 11.38% 2004........................................... 150,000 165,375
Owens & Minor, Inc. 10.88% 2006........................................ 60,000 60,825
------------
226,200
------------
INDUSTRIAL & COMMERCIAL -- 1.6%
American Standard, Inc. zero coupon 2005(1)............................ 150,000 130,875
Cabot Safety Acquisition Corp. 12.50% 2005............................. 100,000 110,500
Collins & Aikman Corp. 11.50% 2006..................................... 100,000 101,250
Exide Corp. 10.75% 2002................................................ 100,000 102,000
Graphic Controls Corp. 12.00% 2005(2).................................. 50,000 53,000
Guitar Center Management Co., Inc. 11.00% 2006......................... 15,000 15,225
Hayes Wheels International, Inc. 11.00% 2006........................... 25,000 25,313
K & F Industries, Inc. 13.75% 2001..................................... 129,000 134,160
Moog, Inc. 10.00% 2006................................................. 25,000 25,000
Northrop Grumman Corp. 9.38% 2024...................................... 100,000 107,513
Rohr, Inc. 11.63% 2003................................................. 125,000 135,624
------------
940,460
------------
INFORMATION & ENTERTAINMENT -- 0.9%
Cablevision Systems Corp. 9.25% 2005................................... 100,000 93,000
Granite Broadcasting Corp. 10.38% 2005................................. 100,000 98,000
MCI Communications Corp. 7.13% 2000.................................... 90,000 90,860
Paging Network, Inc. 10.13% 2007....................................... 25,000 24,563
Young Broadcasting, Inc. 9.00% 2006.................................... 100,000 89,250
Young Broadcasting, Inc. 11.75% 2004................................... 100,000 105,000
------------
500,673
------------
INFORMATION TECHNOLOGY -- 0.2%
Digital Equipment Corp. 7.75% 2023..................................... 150,000 135,612
------------
MATERIALS -- 2.1%
A.K. Steel Corp. 10.75% 2004........................................... 100,000 107,750
Arcadian Partners L.P. 10.75% 2005..................................... 150,000 162,000
Armco, Inc. 9.38% 2000................................................. 275,000 266,750
Container Corp. of America 10.75% 2002................................. 225,000 231,750
Fort Howard Corp. 9.25% 2001........................................... 150,000 150,000
Oregon Steel Mills, Inc. 11.00% 2003................................... 30,000 30,900
Rexene Corp. 11.75% 2004............................................... 25,000 25,874
South Dakota Warren Co. 12.00% 2004.................................... 100,000 105,500
Stone Container Corp. 9.88% 2001....................................... 75,000 72,750
Texas Petrochemical Corp. 11.13% 2006.................................. 35,000 35,613
Wheeling Pittsburgh Corp. 9.38% 2003................................... 70,000 65,100
------------
1,253,987
------------
</TABLE>
- ---------------------
24
<PAGE> 26
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.5%
British Columbia Province Canada 6.50% 2026............................ $ 150,000 $ 134,115
Republic of Argentina 8.38% 2003....................................... 150,000 130,500
------------
264,615
------------
REAL ESTATE -- 0.2%
Webb (Del) Corp. 9.00% 2006............................................ 150,000 135,000
------------
U.S. GOVERNMENT & AGENCIES -- 16.2%
Government National Mortgage Association 6.00% 2009.................... 196,643 187,916
Government National Mortgage Association 6.50% 2008.................... 1,063,028 1,035,453
Government National Mortgage Association 6.50% 2009.................... 199,333 194,163
Government National Mortgage Association 6.50% 2009.................... 26,828 26,132
Government National Mortgage Association 7.50% 2022.................... 203,052 201,353
Government National Mortgage Association 7.50% 2023.................... 432,553 428,228
Government National Mortgage Association 7.50% 2024.................... 464,923 459,693
Government National Mortgage Association 8.50% 2024.................... 350,759 360,622
United States Treasury Bonds 6.25% 2023................................ 250,000 226,640
United States Treasury Bonds 9.25% 2016................................ 250,000 309,180
United States Treasury Notes 5.63% 1998................................ 1,100,000 1,093,301
United States Treasury Notes 5.63% 2000................................ 250,000 242,148
United States Treasury Notes 6.25% 2003................................ 750,000 736,755
United States Treasury Notes 7.25% 2004................................ 100,000 103,578
United States Treasury Notes 7.50% 2001................................ 1,000,000 1,043,910
United States Treasury Notes 7.75% 1999................................ 500,000 520,625
United States Treasury Notes 7.88% 1999................................ 500,000 522,264
United States Treasury Notes 7.88% 2004................................ 1,000,000 1,074,840
United States Treasury Notes 8.50% 2000................................ 750,000 799,920
------------
9,566,721
------------
UTILITIES -- 0.4%
El Paso Electric Co. 8.90% 2006........................................ 215,000 211,238
------------
TOTAL BONDS & NOTES (cost $14,108,735)................................. 14,663,984
------------
<CAPTION>
FOREIGN SECURITIES -- 30.5% SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.4%
Banco Frances Del Rio Plata ADR (Finance).............................. 4,000 115,000
Buenos Aires Embotelladora SA ADR (Consumer Staples)+.................. 3,000 39,750
Telefonica de Argentina SA ADR (Utilities)............................. 3,500 103,687
------------
258,437
------------
AUSTRALIA -- 1.5%
Amcor Ltd. (Materials)................................................. 25,446 172,973
Australia & New Zealand Bank Group (Finance)........................... 33,772 159,770
Boral Ltd. (Materials)................................................. 20,625 53,487
Broken Hill Proprietary Ltd. ADR (Materials)........................... 17,162 236,964
Goodman Fielder Wattie Ltd. (Consumer Staples)......................... 50,976 51,677
Pioneer International Ltd. (Energy).................................... 20,000 58,153
Qantas Airways Ltd. ADR (Information & Entertainment)*................. 7,800 131,989
------------
865,013
------------
BRAZIL -- 0.3%
Aracruz Celulose SA ADR (Materials).................................... 8,000 76,000
Centrais Eletricas Brasileiras SA - ELETROBRAS ADR (Utilities)......... 5,500 76,140
White Martins SA (Materials)........................................... 4,679,000 6,570
------------
158,710
------------
</TABLE>
---------------------
25
<PAGE> 27
<TABLE>
<CAPTION>
FOREIGN SECURITIES (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CANADA -- 0.8%
Canadian Pacific Ltd. (Industrial & Commercial)........................ 17,000 $ 374,000
Canwest Global Communications (Information Technology)................. 2,500 68,125
Nova Corp. Alberta (Materials)......................................... 3,500 31,403
------------
473,528
------------
CHILE -- 0.2%
Compania de Telefonos Chile SA ADR (Utilities)......................... 500 49,062
Enersis SA ADR (Utilities)............................................. 2,000 62,000
------------
111,062
------------
DENMARK -- 0.7%
Tele Danmark A/S ADR (Utilities)....................................... 7,500 190,313
Unidanmark A/S (Finance)............................................... 5,250 243,748
------------
434,061
------------
FINLAND -- 0.4%
Metsa Serla Oy (Materials)............................................. 15,500 110,437
Unitas Ltd. (Finance).................................................. 40,000 83,772
Valmet Corp. (Industrial & Commercial)................................. 2,400 40,677
------------
234,886
------------
FRANCE -- 2.9%
Accor SA (Information & Entertainment)................................. 800 111,984
Assurance General de France (Finance).................................. 6,200 168,030
Banque National Paris (Finance)........................................ 4,500 158,090
Cie de St. Gobain (Materials).......................................... 1,281 171,594
Cie Financiere de Paribas (Finance).................................... 1,000 59,103
Dassault Systems SA (Information Technology)........................... 300 9,300
Elf Aquitaine SA (Energy).............................................. 1,200 88,327
Groupe Danone (Consumer Staples)....................................... 600 90,870
Havas SA (Information & Entertainment)................................. 1,200 98,219
Peugeot SA (Consumer Discretionary).................................... 400 53,581
Rhone-Poulenc SA (Healthcare).......................................... 12,424 326,102
Societe Generale (Finance)............................................. 1,426 156,916
Total SA, Series B (Energy)............................................ 2,790 207,097
------------
1,699,213
------------
GERMANY -- 1.3%
Bayer AG (Healthcare).................................................. 300 10,605
Daimler-Benz AG (Consumer Discretionary)............................... 400 214,272
Degussa AG (Industrial & Commercial)................................... 300 101,947
Deutsche Bank AG (Finance)............................................. 2,400 113,647
Karstadt AG (Consumer Discretionary)................................... 420 170,016
Mannesmann AG (Industrial & Commercial)................................ 262 90,636
Metallgesellschaft (Industrial & Commercial)........................... 4,000 68,793
------------
769,916
------------
HONG KONG -- 1.3%
China Light & Power Co., Ltd. (Utilities).............................. 17,000 77,085
CITIC Pacific Ltd. (Consumer Discretionary)............................ 15,000 60,653
Hutchison Whampoa Ltd. (Real Estate)................................... 31,000 195,032
Swire Pacific Ltd., Class A (Real Estate).............................. 29,000 248,198
Sun Hung Kai Properties Ltd. (Real Estate)............................. 20,000 202,175
Tingyi Holding Co. (Consumer Staples).................................. 2,000 549
------------
783,692
------------
INDIA -- 0.1%
Arvind Mills Ltd. GDR (Consumer Discretionary)......................... 10,000 50,000
------------
</TABLE>
- ---------------------
26
<PAGE> 28
<TABLE>
<CAPTION>
FOREIGN SECURITIES (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDONESIA -- 0.2%
PT Jaya Real Property (Real Estate).................................... 39,000 $ 123,158
------------
IRELAND -- 0.2%
Allied Irish Banks (Finance)........................................... 19,200 100,488
------------
ITALY -- 0.8%
Banca Commerciale Italiana S.p.A. (Finance)............................ 60,000 120,685
Fiat S.p.A. (Consumer Discretionary)................................... 30,000 100,604
Finanziaria Autogrill S.p.A. (Information & Entertainment)............. 60,000 68,846
Gucci Group NV (Consumer Discretionary)................................ 600 38,700
STET (Utilities)....................................................... 42,000 142,080
------------
470,915
------------
JAPAN -- 8.6%
Aichi Machine Industries (Industrial & Commercial)..................... 2,000 14,081
Asahi Organic Chemical (Industrial & Commercial)....................... 7,000 55,109
Bank Of Tokyo-Mitsubishi (Finance)..................................... 7,350 170,704
Chichibu Onoda Cement Co., Ltd. (Materials)............................ 19,000 109,276
Chudenko Corp. (Industrial & Commercial)............................... 2,000 72,784
Chugai Pharmaceutical Co., Ltd. (Healthcare)........................... 13,000 127,189
Dai Nippon Printing Co., Ltd. (Industrial & Commercial)................ 11,000 213,231
Danto Corp. (Materials)................................................ 2,000 27,065
Home Wide Corp. (Consumer Discretionary)............................... 300 4,526
Ito-Yokado Co. (Consumer Discretionary)................................ 2,000 120,879
JGC Corp. (Industrial & Commercial).................................... 7,000 92,168
Kyudenko Corp. (Industrial & Commercial)............................... 5,000 67,206
Maruichi Steel Tube (Energy)........................................... 2,000 36,026
Matsushita Electric Industrial Co., Ltd. (Information &
Entertainment)....................................................... 11,000 205,184
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)............. 20,000 174,279
Murata Manufacturing Co. (Information Technology)...................... 2,000 75,893
Nihon Jumbo Co., Ltd. (Materials)...................................... 2,000 80,465
Nippondenso Co., Ltd. (Consumer Discretionary)......................... 5,000 108,810
Nippon Express Co., Ltd. (Information & Entertainment)................. 14,000 136,973
Nippon Sanso Corp. (Materials)......................................... 10,000 49,376
NKK Corp. (Materials).................................................. 59,000 179,107
Nokia Corp. ADR (Information & Entertainment).......................... 4,000 148,000
Nomura Securities International, Inc. (Finance)........................ 8,000 156,540
Onward Kashiyama (Consumer Discretionary).............................. 13,000 212,774
Sakura Bank Ltd. (Finance)............................................. 13,000 145,019
Sankyo Co., Ltd. (Healthcare).......................................... 8,000 207,744
Sanwa Bank Ltd. (Finance).............................................. 3,000 55,685
Secom Co. (Industrial & Commercial).................................... 3,000 198,601
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary).................. 3,400 217,309
Shimamura Co. (Consumer Discretionary)................................. 3,000 132,218
Sony Corp. (Information & Entertainment)............................... 3,000 197,778
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................... 20,000 174,644
Sumitomo Realty & Development Co., Ltd. (Real Estate).................. 25,000 198,190
Sumitomo Trust & Banking Co., Ltd. (Finance)........................... 6,000 82,293
Toda Construction Co.. (Industrial & Commercial)....................... 10,000 97,838
Tokio Marine & Fire Insurance Co., Ltd. (Finance)...................... 20,000 266,996
Toyo Ink Manufacturing Co. (Materials)................................. 15,000 86,134
Toyota Motor Corp. (Consumer Discretionary)............................ 8,000 200,430
Yamato Kogyo Co. (Materials)........................................... 10,000 119,782
Yamazaki Baking Co. (Consumer Staples)................................. 2,000 37,123
------------
5,055,429
------------
KOREA -- 0.4%
Commerce Bank Korea (Finance).......................................... 2,000 19,066
</TABLE>
---------------------
27
<PAGE> 29
<TABLE>
<CAPTION>
FOREIGN SECURITIES (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
KOREA (continued)
Daewoo Securities Co., Ltd. (Finance).................................. 2,040 $ 48,242
Hanil Bank (Utilities)................................................. 4,000 44,879
Hanwha Chemical (Materials)............................................ 2,000 21,573
Korea Electric Power Corp. (Utilities)................................. 1,000 40,385
Shinhan Bank (Finance)................................................. 1,000 23,262
Shinsegae Department Street (Consumer Discretionary)................... 600 40,680
------------
238,087
------------
LUXEMBOURG -- 0.1%
Quilmes Industrial SA (Consumer Staples)............................... 5,300 54,325
------------
MALAYSIA -- 0.5%
Aokam Perdana Bhd (Materials).......................................... 4,000 6,703
Land & General Bhd (Real Estate)....................................... 40,000 98,617
Resorts World Bhd (Information & Entertainment)........................ 34,000 194,909
------------
300,229
------------
MEXICO -- 0.1%
Alfa SA de CV (Materials).............................................. 10,372 46,835
Transportacion Maritima Mexicana SA de CV ADR (Industrial &
Commercial).......................................................... 2,900 18,487
------------
65,322
------------
NETHERLANDS -- 0.8%
Akzo Nobel NV (Materials).............................................. 700 83,934
Elsevier NV (Information & Entertainment).............................. 7,000 106,303
Internationale Nederlanden Groep NV (Finance).......................... 7,759 169,472
Ver Ned Uitgevers (Information & Entertainment)........................ 6,000 93,228
------------
452,937
------------
NEW ZEALAND -- 0.4%
Air New Zealand Ltd. (Information & Entertainment)..................... 20,045 61,369
Carter Holt Harvey Ltd. (Materials).................................... 65,000 148,917
------------
210,286
------------
NORWAY -- 0.9%
Christiania Bank Og Kreditkasse (Finance).............................. 18,400 43,384
Hafslund ASA (Healthcare).............................................. 5,615 40,669
Kvaerner AS (Industrial & Commercial).................................. 1,900 80,373
Nycomed ASA (Healthcare)............................................... 5,615 80,905
Orkla AS (Consumer Staples)............................................ 3,000 158,111
Saga Petroleum (Energy)................................................ 10,000 147,170
------------
550,612
------------
PHILIPPINES -- 0.1%
Philippine National Bank (Finance)..................................... 4,000 66,794
------------
SINGAPORE -- 1.0%
Development Bank of Singapore (Finance)................................ 16,500 205,812
Keppel Corp. Ltd. (Industrial & Commercial)............................ 28,000 234,160
Straits Steamship Land Ltd. (Real Estate).............................. 20,000 66,903
United Overseas Bank Ltd. (Finance).................................... 9,000 86,109
------------
592,984
------------
SPAIN -- 0.7%
Acerinox SA (Materials)................................................ 1,250 130,366
Repsol SA ADR (Energy)................................................. 5,000 173,750
Telefonica de Espana SA (Utilities).................................... 7,500 138,276
------------
442,392
------------
</TABLE>
- ---------------------
28
<PAGE> 30
<TABLE>
<CAPTION>
FOREIGN SECURITIES (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SWEDEN -- 1.1%
Astra AB, Series A (Healthcare)........................................ 3,100 $ 137,203
Avesta Sheffield (Materials)........................................... 7,500 70,807
BT Industries AB (Industrial & Commercial)*............................ 7,900 121,720
Nordbanken AB (Consumer Staples)....................................... 3,000 58,005
Skand Enskilda Banke (Finance)......................................... 10,000 80,060
Stora Kopparbergs (Materials).......................................... 5,000 66,087
Swiss Bank Corp. (Finance)............................................. 500 98,784
------------
632,666
------------
SWITZERLAND -- 1.2%
Ciba-Geigy AG (Healthcare)............................................. 200 243,961
Nestle SA (Consumer Staples)........................................... 240 274,324
Richemont Cie Finance (Consumer Staples)............................... 30 47,512
Sulzer AG (Healthcare)................................................. 200 119,981
------------
685,778
------------
THAILAND -- 0.2%
Bangkok Metropolitan Bank PCL (Finance)................................ 114,636 84,673
Siam City Cement PCL (Materials)....................................... 2,000 23,163
------------
107,836
------------
UNITED KINGDOM -- 3.3%
Associated British Foods PLC (Consumer Staples)........................ 18,000 108,045
Boots Co. PLC (Consumer Discretionary)................................. 10,000 89,921
British Gas PLC (Utilities)............................................ 70,000 194,595
British Steel PLC (Materials).......................................... 50,000 127,543
British Telecommunications PLC (Utilities)............................. 28,000 150,458
BTR PLC (Industrial & Commercial)...................................... 35,000 137,521
De La Rue PLC (Information Technology)................................. 7,800 72,076
National Grid Group (Utilities)........................................ 30,000 79,438
Northern Foods PLC (Consumer Staples).................................. 23,000 66,082
PowerGen PLC (Utilities)............................................... 20,183 147,008
Rank Organisation PLC (Information & Entertainment).................... 15,000 115,895
Reckitt & Colman (Finance)............................................. 8,000 84,112
Royal Bank of Scotland Group PLC (Finance)............................. 10,000 76,565
Royal Insurance Holdings PLC (Finance)................................. 15,000 92,600
Sainsbury (J.) PLC (Consumer Discretionary)............................ 30,000 176,580
Sun Life & Provincial Holdings (Finance)............................... 20,000 68,955
United Biscuits (Consumer Staples)..................................... 10,000 33,157
Vodafone Group PLC ADR (Information & Entertainment)................... 50,434 187,591
------------
2,008,142
------------
TOTAL FOREIGN SECURITIES (cost $16,070,272)............................ 17,996,898
------------
<CAPTION>
RIGHTS -- 0.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 0.0%
Consumer Discretionary -- 0.0%
Daimler Benz AG
(cost $0)............................................................ 400 0
------------
TOTAL INVESTMENT SECURITIES (cost $47,290,837)......................... 56,873,000
------------
</TABLE>
---------------------
29
<PAGE> 31
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $1,925,000).................................................... $1,925,000 $ 1,925,000
------------
TOTAL INVESTMENTS --
(cost $49,215,837) 99.7% 58,798,000
Other assets less liabilities -- 0.3 169,995
----- ------------
NET ASSETS -- 100.0% $58,967,995
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
GDR - Global Depositary Receipts
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Fair valued security; see Note 2
See Notes to Financial Statements
- ---------------------
30
<PAGE> 32
- ---------------------
ANCHOR SERIES TRUST
MULTI-ASSET PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 62.5% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.6%
Automotive -- 0.4%
Ford Motor Co. ....................................................... 20,000 $ 647,500
Retail -- 4.2%
Home Depot, Inc. ..................................................... 20,000 1,080,000
May Department Stores Co. ............................................ 40,000 1,750,000
Talbots, Inc. ........................................................ 50,000 1,618,750
Wal-Mart Stores, Inc. ................................................ 80,000 2,030,000
-------------
7,126,250
-------------
CONSUMER STAPLES -- 5.8%
Food, Beverage & Tobacco -- 0.7%
Sara Lee Corp. ....................................................... 35,000 1,133,125
Household Products -- 5.1%
Colgate-Palmolive Co. ................................................ 20,000 1,695,000
Gillette Co. ......................................................... 24,000 1,497,000
Kimberly-Clark Corp. ................................................. 20,000 1,545,000
Procter & Gamble Co. ................................................. 19,000 1,721,875
Revlon, Inc., Class A+................................................ 46,000 1,339,750
-------------
8,931,750
-------------
ENERGY -- 5.7%
Energy Services -- 4.5%
Amoco Corp. .......................................................... 30,000 2,171,250
Dresser Industries, Inc. ............................................. 45,000 1,327,500
Exxon Corp. .......................................................... 25,000 2,171,875
Schlumberger Ltd. .................................................... 15,000 1,263,750
Energy Sources -- 1.2%
Unocal Corp. ......................................................... 55,000 1,856,250
-------------
8,790,625
-------------
FINANCE -- 9.7%
Banks -- 3.2%
First Bank System, Inc. .............................................. 30,000 1,740,000
First Union Corp. .................................................... 28,000 1,704,500
Wachovia Corp. ....................................................... 34,000 1,487,500
Financial Services -- 2.9%
American Express Co. ................................................. 40,000 1,785,000
Bancorp Hawaii, Inc. ................................................. 30,000 1,080,000
Federal National Mortgage Association................................. 48,000 1,608,000
Insurance -- 3.6%
ACE Ltd. ............................................................. 30,000 1,410,000
American International Group, Inc. ................................... 22,500 2,219,062
American Reinsurance Corp.+........................................... 45,000 2,019,375
-------------
15,053,437
-------------
</TABLE>
---------------------
31
<PAGE> 33
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 8.8%
Drugs -- 5.7%
Johnson & Johnson Co. ................................................ 48,000 $ 2,376,000
Pfizer, Inc. ......................................................... 25,000 1,784,375
Warner-Lambert Co. ................................................... 30,000 1,650,000
Zeneca Group PLC ADR.................................................. 45,100 3,032,975
Medical Products -- 3.1%
Abbott Laboratories................................................... 55,000 2,392,500
Biomet, Inc.+......................................................... 85,000 1,221,875
Perrigo Co.+.......................................................... 100,000 1,125,000
-------------
13,582,725
-------------
INDUSTRIAL & COMMERCIAL -- 5.7%
Aerospace & Defense -- 1.0%
Boeing Co. ........................................................... 17,000 1,481,125
Electrical Equipment -- 2.2%
General Electric Co. ................................................. 25,000 2,162,500
York International Corp. ............................................. 25,000 1,293,750
Machinery -- 0.8%
Illinois Tool Works, Inc. ............................................ 17,000 1,149,625
Transportation -- 1.7%
Canadian Pacific Ltd. ................................................ 65,000 1,430,000
Conrail, Inc. ........................................................ 18,000 1,194,750
-------------
8,711,750
-------------
INFORMATION & ENTERTAINMENT -- 6.4%
Broadcasting & Media -- 4.2%
Comcast Corp., Class A................................................ 75,000 1,387,500
Gannett Co., Inc. .................................................... 30,000 2,122,500
Gaylord Entertainment Co., Class A.................................... 47,486 1,341,480
Viacom, Inc.+......................................................... 40,000 1,555,000
Leisure & Tourism -- 2.2%
AMR Corp.+............................................................ 17,063 1,552,759
McDonald's Corp. ..................................................... 40,000 1,870,000
-------------
9,829,239
-------------
INFORMATION TECHNOLOGY -- 10.2%
Communication Equipment -- 3.7%
Cisco Systems, Inc.+.................................................. 28,000 1,585,500
General Instrument Corp.+............................................. 50,000 1,443,750
MCI Communications Corp. ............................................. 50,000 1,281,250
Motorola, Inc. ....................................................... 23,000 1,446,125
Computers & Business Equipment -- 1.2%
Hewlett-Packard Co. .................................................. 18,000 1,793,250
Electronics -- 0.8%
AMP, Inc. ............................................................ 30,000 1,203,750
Software -- 4.5%
Automatic Data Processing, Inc. ...................................... 60,000 2,317,500
BMC Software, Inc. ................................................... 30,000 1,792,500
First Data Corp. ..................................................... 18,000 1,433,250
Microsoft Corp.+...................................................... 12,000 1,441,500
-------------
15,738,375
-------------
</TABLE>
- ---------------------
32
<PAGE> 34
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 4.1%
Chemicals -- 2.9%
Air Products & Chemicals, Inc. ....................................... 34,000 $ 1,963,500
Dow Chemical Co. ..................................................... 16,000 1,216,000
Engelhard Corp. ...................................................... 53,000 1,219,000
Forest Products -- 1.2%
International Paper Co. .............................................. 50,000 1,843,750
-------------
6,242,250
-------------
UTILITIES -- 1.5%
Telephone -- 1.5%
AT&T Corp. ........................................................... 38,000 2,356,000
-------------
TOTAL COMMON STOCK (cost $69,321,280)................................. 96,362,401
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 33.5% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 8.4%
Banc One Auto Grantor Trust 6.55% 2003................................ $1,000,000 1,002,500
Lumbermans Mutual Casualty Co. 9.15% 2026*............................ 1,000,000 1,020,300
Security Benefit Life Co. 8.75% 2016*................................. 1,000,000 1,013,515
Bank Of Boston Corp. 6.63% 2004....................................... 1,500,000 1,430,205
BankAmerica Corp. 5.69% 1998(1)....................................... 1,000,000 1,004,184
Bankers Trust New York Corp. 8.25% 2005............................... 1,500,000 1,574,349
Citicorp 6.75% 2005................................................... 1,500,000 1,439,070
Daimler-Benz Vehicle Trust 5.95% 2000................................. 399,810 399,346
Fleet Mortgage Group, Inc. 6.50% 2000................................. 1,500,000 1,472,400
General Motors Acceptance Corp. 5.63% 2001............................ 1,000,000 948,980
IBM Credit Receivables Lease Asset Master Trust 4.55% 2000............ 475,112 469,754
Nissan Auto Receivables Grantor Trust 6.45% 1999...................... 549,472 552,180
Premier Auto Trust 4.65% 1999......................................... 568,066 558,874
-------------
12,885,657
-------------
INDUSTRIAL & COMMERCIAL -- 3.7%
Philips Electronics NV 7.20% 2026..................................... 1,000,000 991,930
Mobil Oil Corp. 9.17% 2000............................................ 578,250 607,885
Niagara Mohawk Power Corp. 5.88% 2002................................. 1,250,000 1,147,038
Northrop Grumman Corp. 8.63% 2004..................................... 1,000,000 1,073,210
Penney (J.C.), Inc. 7.38% 2004........................................ 1,000,000 1,000,230
TCI Communications, Inc. 6.88% 2006................................... 1,000,000 902,570
-------------
5,722,863
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.0%
Quebec Province Canada 8.80% 2003..................................... 1,500,000 1,636,950
Republic of Italy 6.88% 2023.......................................... 1,500,000 1,352,580
-------------
2,989,530
-------------
U.S. GOVERNMENT & AGENCIES -- 19.4%
Federal Home Loan Mortgage Corp. 6.50% 2025 - 2026.................... 6,011,182 5,629,832
Federal Home Loan Mortgage Corp. 6.50% 2010 - 2011.................... 4,821,904 4,669,107
Federal Home Loan Mortgage Corp. 7.00% 2011........................... 2,938,027 2,898,539
Federal Home Loan Mortgage Corp. 8.50% 2001........................... 1,500,000 1,547,594
Federal National Mortgage Association 7.50% 2022 - 2025............... 1,802,807 1,784,817
Government National Mortgage Association 6.50% 2023................... 4,588,418 4,270,073
United States Treasury Bonds 10.38% 2012.............................. 7,200,000 9,140,616
-------------
29,940,578
-------------
TOTAL BONDS & NOTES (cost $52,441,741)................................ 51,538,628
-------------
</TABLE>
---------------------
33
<PAGE> 35
<TABLE>
<CAPTION>
CONVERTIBLE SECURITIES -- 1.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCK -- 1.2%
Energy Sources -- 0.2%
Unocal Corp. $3.50*................................................... 6,000 $ 338,250
Real Estate Companies -- 1.0%
Security Capital Pacific Trust, Series A.............................. 60,000 1,575,000
-------------
TOTAL CONVERTIBLE PREFERRED STOCK (cost $1,804,442)................... 1,913,250
-------------
TOTAL INVESTMENT SECURITIES (cost $123,567,463)....................... 149,814,279
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 2.5% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $3,880,000)................................................... $3,880,000 3,880,000
-------------
TOTAL INVESTMENTS --
(cost $127,447,463) 99.7% 153,694,279
Other assets less liabilities -- 0.3 389,087
----- -------------
NET ASSETS -- 100.0% $154,083,366
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
(1) Variable rate security; rate as of June 30, 1996
See Notes to Financial Statements
- ---------------------
34
<PAGE> 36
- ---------------------
ANCHOR SERIES TRUST
CAPITAL APPRECIATION
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 92.5% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.0%
Apparel & Textiles -- 3.8%
Donna Karan International, Inc. ..................................... 10,800 $ 302,400
Fila Holding S.p.A., ADR............................................. 100,000 8,625,000
Gucci Group NV+...................................................... 20,600 1,328,700
Mossimo, Inc.+....................................................... 90,000 3,588,750
Tommy Hilfiger Corp.+................................................ 78,100 4,188,113
Retail -- 4.2%
Bed Bath & Beyond, Inc.+............................................. 110,000 2,942,500
Gymboree Corp.+...................................................... 189,200 5,770,600
Mercantile Stores Co., Inc. ......................................... 100,000 5,862,500
Saks Holdings, Inc. ................................................. 85,100 2,904,037
Sports Authority, Inc.+.............................................. 75,800 2,482,450
-------------
37,995,050
-------------
CONSUMER STAPLES -- 2.8%
Food, Beverage & Tobacco -- 1.7%
Canandaigua Wine Co., Inc., Class A+................................. 185,000 5,550,000
Pete's Brewing Co.+.................................................. 150,000 2,250,000
Household Products -- 1.1%
Revlon, Inc., Class A+............................................... 180,000 5,242,500
-------------
13,042,500
-------------
ENERGY -- 7.3%
Energy Services -- 0.9%
Input/Output, Inc.+.................................................. 140,000 4,532,500
Energy Sources -- 6.4%
Alberta Energy Ltd. ................................................. 225,000 4,218,750
ENSCO International, Inc.+........................................... 100,000 3,250,000
Noble Affiliates, Inc. .............................................. 160,000 6,040,000
Total Petroleum North America Ltd. .................................. 67,400 657,150
Transocean Drilling AS............................................... 148,100 3,845,657
Union Pacific Resources Group, Inc.+................................. 83,000 2,220,250
Unocal Corp. ........................................................ 115,000 3,881,250
Vastar Resources, Inc. .............................................. 157,600 5,890,300
-------------
34,535,857
-------------
FINANCE -- 6.1%
Financial Services -- 0.9%
Imperial Credit Industries, Inc.+.................................... 143,000 4,325,750
Insurance -- 5.2%
Allstate Corp. ...................................................... 200,000 9,125,000
American Reinsurance Corp.+.......................................... 125,000 5,609,375
First Colony Corp. .................................................. 100,000 3,100,000
Home State Holdings, Inc.+........................................... 98,600 825,775
Transatlantic Holdings, Inc. ........................................ 80,000 5,610,000
-------------
28,595,900
-------------
</TABLE>
---------------------
35
<PAGE> 37
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 14.6%
Drugs -- 6.2%
Alpharma, Inc., Class A.............................................. 110,000 $ 2,186,250
Eisai Co. Ltd. ...................................................... 300,000 5,678,233
Genetics Institute, Inc.+............................................ 60,000 3,810,000
Hafslund Nycomed ASA, Series B ADR................................... 137,318 926,897
Immunex Corp.+....................................................... 200,000 2,725,000
Nycomed ASA.......................................................... 39,618 559,604
Rhone-Poulenc Rorer, Inc. ........................................... 150,000 10,068,750
Zeneca Group PLC ADR................................................. 150,000 3,317,285
Health Services -- 6.5%
American Medical Response, Inc.+..................................... 130,000 4,582,500
Beverly Enterprises, Inc.+........................................... 225,000 2,700,000
FHP International Corp.+............................................. 125,000 3,421,875
GranCare, Inc.+...................................................... 130,000 2,583,750
IDX Systems Corp.+................................................... 100,000 3,900,000
Magellan Health Services, Inc. ...................................... 285,000 6,127,500
Vencor, Inc.+........................................................ 240,000 7,320,000
Medical Products -- 1.9%
Biomet, Inc.+........................................................ 100,000 1,437,500
Haemonetics Corp. ................................................... 275,000 5,018,750
Ventritex, Inc.+..................................................... 150,000 2,568,750
-------------
68,932,644
-------------
INDUSTRIAL & COMMERCIAL -- 6.3%
Aerospace & Defense -- 0.9%
Northrop Grumman Corp. .............................................. 60,000 4,087,500
Business Services -- 0.6%
DST Systems, Inc.+................................................... 81,500 2,608,000
Electrical Equipment -- 0.7%
York International Corp. ............................................ 60,000 3,105,000
Machinery -- 0.8%
Precision Castparts Corp. ........................................... 91,000 3,913,000
Metals -- 1.4%
UCAR International, Inc.+............................................ 125,000 5,203,125
USINOR SACILOR+...................................................... 110,606 1,596,644
Transportation -- 1.9%
Pittston Co. ........................................................ 226,700 4,902,387
Swift Transportation Co., Inc. ...................................... 109,500 2,094,188
Werner Enterprises, Inc. ............................................ 85,000 2,210,000
-------------
29,719,844
-------------
INFORMATION & ENTERTAINMENT -- 28.2%
Broadcasting & Media -- 21.8%
American Radio Systems Corp., Class A................................ 140,000 6,020,000
Canwest Global Communications........................................ 80,000 2,180,000
Central European Media Entertainment Light Ltd., Class A............. 170,000 4,250,000
Chancellor Broadcasting Corp.+....................................... 99,800 3,118,750
E-Z Communications, Inc.+............................................ 130,000 3,087,500
Emmis Broadcasting Corp., Class A+................................... 80,000 4,000,000
Evergreen Media Corp.+............................................... 180,000 7,695,000
Gaylord Entertainment Co., Class A................................... 210,299 5,940,947
International Cabletel, Inc.+........................................ 146,666 4,326,647
Jacor Communications, Inc.+.......................................... 200,000 6,175,000
LodgeNet Entertainment Corp.+........................................ 150,000 2,062,500
News Corp., Ltd. ADR................................................. 200,000 4,025,000
</TABLE>
- ---------------------
36
<PAGE> 38
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Broadcasting & Media (continued)
Providence Journal Co. .............................................. 291,700 $ 4,484,888
Renaissance Communications Corp.+.................................... 120,000 3,870,000
Saga Communications, Inc., Class A+.................................. 168,312 3,639,747
Scholastic Corp.+.................................................... 30,000 1,860,000
Scripps (E.W.) Co., Class A.......................................... 85,000 3,963,125
SFX Broadcasting Inc., Class A+...................................... 175,000 6,825,000
Tele-Communications Liberty Media Group+............................. 300,000 7,950,000
Valuevision International, Inc., Class A+............................ 200,000 1,387,500
Viacom, Inc., Class A+............................................... 11,200 427,000
Viacom, Inc., Class B+............................................... 109,861 4,270,846
Vodafone Group PLC ADR............................................... 75,000 2,765,625
Westwood One, Inc.+.................................................. 170,000 2,592,500
Young Broadcasting Inc., Class A+.................................... 150,000 5,737,500
Entertainment Products -- 0.9%
Philips Electronics NV ADR........................................... 130,000 4,241,250
Leisure & Tourism -- 5.5%
America West Airlines, Inc.+......................................... 125,000 2,750,000
AMR Corp.+........................................................... 110,000 10,010,000
Continental Airlines, Inc. .......................................... 80,000 4,940,000
Planet Hollywood International, Inc. ................................ 5,500 148,500
Royal Caribbean Cruises Ltd. ........................................ 100,000 2,850,000
Starbucks Corp.+..................................................... 185,000 5,226,250
-------------
132,821,075
-------------
INFORMATION TECHNOLOGY -- 18.1%
Communication Equipment -- 7.2%
Cisco Systems, Inc.+................................................. 150,000 8,493,750
FORE Systems, Inc.+.................................................. 205,000 7,405,625
General Instrument Corp.+............................................ 140,000 4,042,500
MobileMedia Corp. ................................................... 400,000 4,850,000
Nokia Corp. ADR...................................................... 150,000 5,550,000
Oak Industries, Inc. ................................................ 116,800 3,460,200
Computers & Business Equipment -- 0.8%
Adaptec, Inc.+....................................................... 70,000 3,316,250
Plaintree Systems, Inc.+............................................. 125,000 687,500
Radius, Inc. ........................................................ 3,342 9,190
Software -- 10.1%
BISYS Group, Inc.+................................................... 200,000 7,550,000
BMC Software, Inc.+.................................................. 100,000 5,975,000
Cognos, Inc.......................................................... 300,000 6,900,000
Compuware Corp.+..................................................... 86,600 3,420,700
Parametric Technology Corp.+......................................... 150,000 6,506,250
Policy Management Systems Corp.+..................................... 75,000 3,750,000
Spectrum Holobyte, Inc.+............................................. 335,000 1,926,250
Sterling Software, Inc.+............................................. 125,000 9,625,000
Systems & Computer Technology Corp.+................................. 130,000 1,885,000
-------------
85,353,215
-------------
MATERIALS -- 1.1%
Metals & Minerals -- 1.1%
Titanium Metals Corp................................................. 200,000 5,175,000
-------------
TOTAL INVESTMENT SECURITIES (cost $324,457,735)...................... 436,171,085
-------------
<CAPTION>
</TABLE>
---------------------
37
<PAGE> 39
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $28,235,000)................................................. $28,235,000 $ 28,235,000
-------------
TOTAL INVESTMENTS --
(cost $352,692,735) 98.5% 464,406,085
Other assets less liabilities -- 1.5 6,928,443
----- -------------
NET ASSETS -- 100.0% $471,334,528
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR - American Depositary Receipts
See Notes to Financial Statements
- ---------------------
38
<PAGE> 40
- ---------------------
ANCHOR SERIES TRUST
GROWTH AND INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 78.8% SHARES VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.5%
Retail -- 5.5%
May Department Stores Co. ........................................... 13,000 $ 568,750
Mercantile Stores Co., Inc. ......................................... 5,200 304,850
Saks Holdings, Inc.+................................................. 8,600 293,475
Wal-Mart Stores, Inc. ............................................... 22,000 558,250
---------
1,725,325
---------
CONSUMER STAPLES -- 9.9%
Food, Beverage & Tobacco -- 1.9%
Sara Lee Corp. ...................................................... 18,000 582,750
Household Products -- 8.0%
Colgate-Palmolive Co. ............................................... 6,000 508,500
Gillette Co. ........................................................ 7,000 436,625
Kimberly-Clark Corp. ................................................ 7,000 540,750
Procter & Gamble Co. ................................................ 7,000 634,375
Revlon, Inc., Class A+............................................... 14,000 407,750
---------
3,110,750
---------
ENERGY -- 6.1%
Energy Services -- 1.3%
Schlumberger Ltd. ................................................... 5,000 421,250
Energy Sources -- 4.8%
Amoco Corp. ......................................................... 6,000 434,250
Exxon Corp. ......................................................... 6,000 521,250
Royal Dutch Petroleum Co. ADR........................................ 3,500 538,125
---------
1,914,875
---------
FINANCE -- 10.0%
Banks -- 4.6%
First Union Corp. ................................................... 9,000 547,875
Morgan (J.P.) & Co., Inc. ........................................... 5,000 423,125
Wachovia Corp. ...................................................... 11,000 481,250
Financial Services -- 1.6%
American Express Co. ................................................ 11,000 490,875
Insurance -- 3.8%
Allstate Corp. ...................................................... 11,000 501,875
American International Group, Inc. .................................. 7,000 690,375
---------
3,135,375
---------
HEALTHCARE -- 11.0%
Drugs -- 8.9%
American Home Products Corp. ........................................ 10,000 601,250
Bristol-Myers Squibb Co. ............................................ 6,000 540,000
Pfizer, Inc. ........................................................ 9,000 642,375
Warner-Lambert Co. .................................................. 10,000 550,000
Zeneca Group PLC ADR................................................. 7,000 470,750
</TABLE>
---------------------
39
<PAGE> 41
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Medical Products -- 2.1%
Abbott Laboratories.................................................. 15,000 $ 652,500
---------
3,456,875
---------
INDUSTRIAL & COMMERCIAL -- 8.8%
Aerospace & Military Technology -- 3.1%
Boeing Co. .......................................................... 7,000 609,875
United Technologies Corp. ........................................... 3,200 368,000
Electrical Equipment -- 3.3%
AMP, Inc. ........................................................... 10,000 401,250
General Electric Co. ................................................ 7,500 648,750
Transportation -- 2.4%
Conrail, Inc. ....................................................... 6,000 398,250
Union Pacific Corp. ................................................. 5,000 349,375
---------
2,775,500
---------
INFORMATION & ENTERTAINMENT -- 6.7%
Broadcasting & Media -- 4.8%
Gannett Co., Inc. ................................................... 9,000 636,750
Viacom, Inc., Class B+............................................... 15,000 583,125
Vodafone Group PLC ADR............................................... 8,000 295,000
Leisure & Tourism -- 1.9%
McDonald's Corp. .................................................... 13,000 607,750
---------
2,122,625
---------
INFORMATION TECHNOLOGY -- 9.5%
Communication Equipment -- 3.8%
Cisco Systems, Inc.+................................................. 7,000 396,375
General Instrument Corp.+............................................ 8,505 245,589
Motorola, Inc. ...................................................... 9,000 565,875
Computers & Business Equipment -- 1.8%
International Business Machines Corp. ............................... 5,700 564,300
Software -- 3.9%
Automatic Data Processing, Inc. ..................................... 12,000 463,500
Electronic Data Systems Corp. ....................................... 14,078 756,693
---------
2,992,332
---------
MATERIALS -- 4.1%
Chemicals -- 4.1%
Air Products & Chemicals, Inc. ...................................... 9,000 519,750
Dow Chemical Co. .................................................... 4,000 304,000
du Pont (E.I.) de Nemours & Co. ..................................... 6,000 474,750
---------
1,298,500
---------
UTILITIES -- 7.2%
Electric Utilities -- 3.7%
Central & South West Corp. .......................................... 13,000 377,000
Pacific Gas & Electric Co. .......................................... 15,000 348,750
Texas Utilities Co. ................................................. 10,000 427,500
Telephone -- 3.5%
AT&T Corp. .......................................................... 11,000 682,000
SBC Communications, Inc. ............................................ 8,500 418,625
---------
2,253,875
---------
TOTAL COMMON STOCK (cost $23,640,410)................................ 24,786,032
---------
<CAPTION>
</TABLE>
- ---------------------
40
<PAGE> 42
<TABLE>
<CAPTION>
CONVERTIBLE PREFERRED STOCK -- 12.9% SHARES VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 3.3%
Energy Sources -- 3.3%
Occidental Petroleum Corp. $3.88*.................................... 8,000 $ 475,000
Unocal Corp. 7.00%*.................................................. 10,000 563,750
---------
1,038,750
---------
FINANCE -- 2.1%
Insurance -- 2.1%
Jefferson Pilot Corp. 7.25%.......................................... 8,000 652,000
---------
INFORMATION & ENTERTAINMENT -- 2.6%
Broadcasting & Media -- 1.2%
Cablevision Systems Corp., Series I 8.50%............................ 15,000 390,000
Leisure & Tourism -- 1.4%
Continental Airlines Finance Trust 8.50%*(1)......................... 6,000 441,000
---------
831,000
---------
MATERIALS -- 1.8%
Forest Products -- 1.8%
International Paper Capital Trust 5.25%.............................. 12,500 552,344
---------
REAL ESTATE -- 3.1%
Real Estate Investment Trusts -- 3.1%
Security Capital Industrial Trust 7.00%.............................. 20,000 462,500
Security Capital Pacific Trust, Series A 7.00%....................... 20,000 525,000
---------
987,500
---------
TOTAL CONVERTIBLE PREFERRED STOCK (cost $3,824,338).................. 4,061,594
---------
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 6.4% AMOUNT
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 1.6%
Health Services -- 1.6%
Tenet Healthcare Corp. 6.00% 2005.................................... $500,000 508,750
---------
INFORMATION TECHNOLOGY -- 3.4%
Communication Equipment -- 0.7%
General Instrument Corp. 5.00% 2000.................................. 198,000 239,827
Software -- 2.7%
First Financial Management Corp. 5.00% 1999.......................... 450,000 838,125
---------
1,077,952
---------
UTILITIES -- 1.4%
Telephone -- 1.4%
LDDS Communications, Inc. 5.00% 2003................................. 300,000 430,500
---------
TOTAL CONVERTIBLE BONDS (cost $1,757,060)............................ 2,017,202
---------
TOTAL INVESTMENT SECURITIES (cost $29,221,808)....................... 30,864,828
---------
</TABLE>
---------------------
41
<PAGE> 43
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 1.9% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $605,000).................................................... $605,000 $ 605,000
------------
TOTAL INVESTMENTS --
(cost $29,826,808) 100.0% 31,469,828
Other assets less liabilities -- 0.0 5,184
----- ------------
NET ASSETS -- 100.0% $ 31,475,012
===== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
(1) Fair valued security; see Note 2
See Notes to Financial Statements
- ---------------------
42
<PAGE> 44
- ---------------------
ANCHOR SERIES TRUST
FOREIGN SECURITIES
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 94.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 1.3%
Banco Frances Del Rio Plata ADR (Finance).............................. 10,000 $ 287,500
Buenos Aires Embotelladora SA ADR (Consumer Staples)+.................. 9,000 119,250
Telefonica de Argentina SA ADR (Utilities)............................. 10,000 296,250
-----------
703,000
-----------
AUSTRALIA -- 4.7%
Amcor Ltd. (Materials)................................................. 93,964 638,734
Australia & New Zealand Bank Group (Finance)........................... 131,693 623,019
Boral Ltd. (Materials)................................................. 41,301 107,107
Broken Hill Proprietary Ltd. ADR (Materials)........................... 47,600 657,235
Goodman Fielder Wattie Ltd. (Consumer Staples)......................... 203,906 206,710
Pioneer International Ltd. (Energy).................................... 50,000 145,383
Qantas Airways Ltd. ADR (Information & Entertainment)*................. 13,600 230,134
-----------
2,608,322
-----------
BRAZIL -- 0.6%
Aracruz Celulose SA ADR (Materials).................................... 20,000 190,000
Centrais Eletricas Brasileiras SA - ELETROBRAS ADR (Utilities)......... 9,000 124,593
White Martins SA (Materials)........................................... 14,673,300 20,603
-----------
335,196
-----------
CANADA -- 1.9%
Canadian Pacific Ltd. ADR (Industrial & Commercial).................... 37,000 814,000
Canwest Global Communications (Information Technology)................. 7,100 193,475
Nova Corp. Alberta (Materials)......................................... 6,900 61,910
-----------
1,069,385
-----------
CHILE -- 0.7%
Compania de Telefonos Chile SA ADR (Utilities)......................... 1,350 132,469
Enersis SA ADR (Utilities)............................................. 9,000 279,000
-----------
411,469
-----------
DENMARK -- 2.3%
Tele Danmark A/S ADR (Utilities)....................................... 22,000 558,250
Unidanmark A/S (Finance)............................................... 15,500 719,638
-----------
1,277,888
-----------
FINLAND -- 2.0%
Metsa Serla Oy (Materials)............................................. 47,500 338,436
Nokia Corp. ADR (Information Technology)............................... 10,500 388,500
Unitas Ltd. (Finance).................................................. 128,600 269,328
Valmet Corp. (Materials)............................................... 7,200 122,031
-----------
1,118,295
-----------
FRANCE -- 8.6%
Accor SA (Information & Entertainment)................................. 2,300 321,953
Assurance General de France (Finance).................................. 6,500 176,161
Banque Nationale de Paris (Finance).................................... 16,000 562,097
Cie de St. Gobain (Materials).......................................... 3,597 481,828
Cie Financiere de Paribas (Finance).................................... 5,000 295,513
Elf Aquitaine SA (Energy).............................................. 5,000 368,030
Groupe Danone (Consumer Staples)....................................... 2,080 315,017
</TABLE>
---------------------
43
<PAGE> 45
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Havas SA (Information & Entertainment)................................. 4,000 $ 327,397
Peugeot SA (Consumer Discretionary).................................... 500 66,976
Rhone-Poulenc SA (Healthcare).......................................... 31,830 835,465
Societe Generale (Finance)............................................. 3,846 423,213
Total SA, Series B (Energy)............................................ 7,782 577,644
-----------
4,751,294
-----------
GERMANY -- 3.6%
Bayer AG (Healthcare).................................................. 1,100 38,885
Daimler-Benz AG (Consumer Discretionary)............................... 1,150 616,031
Degussa AG (Industrial & Commercial)................................... 700 237,876
Deutsche Bank AG (Finance)............................................. 7,500 355,146
Karstadt AG (Consumer Discretionary)................................... 1,100 445,281
Mannesmann AG (Industrial & Commercial)................................ 800 276,751
-----------
1,969,970
-----------
HONG KONG -- 4.3%
CITIC Pacific Ltd. (Consumer Discretionary)............................ 95,000 384,133
Hutchison Whampoa Ltd. (Real Estate)................................... 130,000 817,874
Sun Hung Kai Properties Ltd. (Real Estate)............................. 55,000 555,983
Swire Pacific Ltd., Class A (Real Estate).............................. 75,000 641,891
-----------
2,399,881
-----------
INDIA -- 0.2%
Arvind Mills Ltd. GDR (Consumer Discretionary)......................... 10,000 50,000
Reliance Industries GDS (Materials)*................................... 5,000 65,000
-----------
115,000
-----------
INDONESIA -- 0.4%
PT Jaya Real Property (Real Estate)*................................... 77,000 243,158
-----------
IRELAND -- 0.6%
Allied Irish Banks (Finance)........................................... 60,000 314,024
-----------
ITALY -- 2.5%
Arnaldo Mondadori Edit (Information & Entertainment)................... 40,000 303,020
Banca Commerciale Italiana S.p.A. (Finance)............................ 111,200 223,671
Fiat S.p.A. (Consumer Discretionary)................................... 80,000 268,278
Finanziaria Autogrill S.p.A. (Information & Entertainment)............. 90,000 103,269
STET (Utilities)....................................................... 144,000 487,131
-----------
1,385,369
-----------
JAPAN -- 24.2%
Aichi Machine Indiana (Industrial & Commercial)........................ 7,000 49,284
Asahi Organic Chemical (Industrial & Commercial)....................... 19,000 149,582
Bank Of Tokyo-Mitsubishi (Finance)..................................... 15,750 365,793
Canon Sales Co., Inc. (Industrial & Commercial)........................ 5,000 139,441
Chichibu Onoda Cement Co., Ltd. (Materials)............................ 43,000 247,309
Chudenko Corp. (Industrial & Commercial)............................... 3,000 109,176
Chugai Pharmaceutical Co., Ltd. (Healthcare)........................... 22,000 215,243
Cosel Co., Ltd. (Industrial & Commercial).............................. 3,600 85,585
Dai Nippon Printing Co., Ltd. (Industrial & Commercial)................ 30,000 581,539
Danto Corp. (Materials)................................................ 6,000 81,196
Home Wide Corp. (Consumer Discretionary)............................... 100 1,509
Ito-Yokado Co. (Consumer Discretionary)................................ 6,000 362,639
Japan Associates Finance Co. (Finance)................................. 2,000 234,079
JGC Corp. (Industrial & Commercial).................................... 21,000 276,505
Kyudenko Corp. (Industrial & Commercial)............................... 15,000 201,618
Mabuchi Motor Co., Ltd. (Industrial & Commercial)...................... 6,000 382,938
Maruichi Steel Tube (Energy)........................................... 4,000 72,052
</TABLE>
- ---------------------
44
<PAGE> 46
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Matsushita Electric Industrial Co., Ltd. (Information &
Entertainment)....................................................... 30,000 $ 559,594
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)............. 55,000 479,267
Murata Manufacturing Co. (Information Technology)...................... 11,000 417,410
Nichii Gakkan Co. (Healthcare)......................................... 200 10,424
Nippon Express Co., Ltd. (Industrial & Commercial)..................... 25,000 244,594
Nippondenso Co., Ltd. (Consumer Discretionary)......................... 13,000 282,906
NKK Corp. (Materials).................................................. 89,000 270,178
Nomura Securities International, Inc. (Finance)........................ 29,000 567,458
Onward Kashiyama (Consumer Discretionary).............................. 37,000 605,587
Sakura Bank Ltd. (Finance)............................................. 33,000 368,125
Sankyo Co., Ltd. (Healthcare).......................................... 24,000 623,234
Sanwa Bank Ltd. (Finance).............................................. 8,000 148,494
Secom Co. (Industrial & Commercial).................................... 10,000 662,003
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary).................. 5,700 364,312
Shimamura Co. (Consumer Discretionary)................................. 17,000 749,234
Sony Corp. (Information & Entertainment)............................... 9,000 593,334
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................... 15,000 130,983
Sumitomo Realty & Development Co., Ltd. (Real Estate).................. 88,000 697,627
Sumitomo Trust & Banking Co., Ltd. (Finance)........................... 15,000 205,733
Toda Construction Co. (Industrial & Commercial)........................ 17,000 166,324
Tokio Marine & Fire Insurance Co., Ltd. (Finance)...................... 50,000 667,490
Toyo Ink Manufacturing Co. (Materials)................................. 38,000 218,205
Toyota Motor Corp. (Consumer Discretionary)............................ 22,000 551,182
Yamato Kogyo Co. (Materials)........................................... 19,000 227,586
Yamazaki Baking Co. (Consumer Staples)................................. 1,000 18,562
-----------
13,385,334
-----------
MALAYSIA -- 1.8%
Aokam Perdana Bhd (Materials).......................................... 18,000 30,162
Land & General Bhd (Real Estate)....................................... 70,000 172,580
Resorts World Bhd (Information & Entertainment)........................ 43,000 246,502
Sime Darby Bhd (Industrial & Commercial)............................... 198,000 547,685
-----------
996,929
-----------
MEXICO -- 0.2%
Alfa SA de CV (Materials).............................................. 27,658 124,889
Transportacion Maritima Mexicana SA de CV ADR (Industrial &
Commercial).......................................................... 900 5,738
-----------
130,627
-----------
NETHERLANDS -- 3.7%
Elsevier NV (Information & Entertainment).............................. 20,000 303,723
Internationale Nederlanden Groep NV (Finance).......................... 21,718 445,140
KLM Royal Dutch Air Lines NV (Information & Entertainment)............. 12,000 384,169
PolyGram NV (Information & Entertainment).............................. 5,000 295,515
Unilever NV CVA (Consumer Staples)..................................... 3,400 492,407
Ver Ned Uitgevers (Services)........................................... 7,700 119,642
-----------
2,040,596
-----------
NEW ZEALAND -- 1.0%
Air New Zealand Ltd. (Information & Entertainment)..................... 46,141 141,264
Carter Holt Harvey Ltd. (Materials).................................... 189,000 433,003
-----------
574,267
-----------
NORWAY -- 2.5%
Christiania Bank Og Kreditkasse (Finance)*............................. 41,100 96,905
Kvaerner AS (Industrial & Commercial).................................. 4,700 198,818
Nycomed ASA (Healthcare)............................................... 15,000 216,132
Orkla AS (Consumer Staples)............................................ 8,000 421,630
Saga Petroleum (Energy)................................................ 29,000 426,793
-----------
1,360,278
-----------
</TABLE>
---------------------
45
<PAGE> 47
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES -- 0.4%
Philippine National Bank (Finance)..................................... 14,460 $ 241,460
-----------
SINGAPORE -- 2.9%
Development Bank of Singapore (Finance)................................ 49,250 614,316
Far East Levingst (Energy)............................................. 46,000 254,288
Keppel Corp. Ltd. (Industrial & Commercial)............................ 46,000 384,692
Straits Steamship Land Ltd. (Real Estate).............................. 50,000 167,257
United Overseas Bank Ltd. (Finance).................................... 20,000 191,354
-----------
1,611,907
-----------
SOUTH KOREA -- 1.5%
Commerce Bank Korea (Finance).......................................... 6,100 58,150
Daewoo Securities Co., Ltd. (Finance).................................. 5,814 137,491
Hanil Bank (Finance)................................................... 13,000 145,857
Hanwha Chemical (Materials)............................................ 7,000 75,505
Korea Electric Power Corp. (Utilities)................................. 2,000 80,769
Pohang Iron & Steel Co., Ltd. ADR (Materials).......................... 5,000 121,875
Shinhan Bank (Finance)................................................. 3,000 69,786
Shinsegae Department Street (Consumer Discretionary)................... 2,000 135,602
-----------
825,035
-----------
SPAIN -- 3.5%
Acerinox SA (Materials)................................................ 2,250 234,659
Empresa Nacional de Electricidad ADR (Utilities)....................... 4,500 281,812
Empresa Nacional de Electricidad SA (Utilities)........................ 4,000 249,678
Iberdrola SA (Utilities)............................................... 46,000 472,560
Repsol SA ADR (Energy)................................................. 13,000 451,750
Telefonica de Espana SA (Utilities).................................... 12,000 221,241
-----------
1,911,700
-----------
SWEDEN -- 3.2%
Avesta Sheffield (Materials)........................................... 36,700 346,483
BT Industries AB (Industrial & Commercial)*............................ 30,100 463,769
Electrolux AB (Consumer Discretionary)................................. 5,000 251,884
Nordbanken AB (Finance)................................................ 10,000 193,351
Skandinaviska Enskilda Banken (Finance)................................ 40,000 320,237
Stora Kopparbergs (Materials).......................................... 14,000 185,042
-----------
1,760,766
-----------
SWITZERLAND -- 4.7%
Ciba-Geigy AG (Healthcare)............................................. 590 719,685
Nestle SA (Consumer Staples)........................................... 660 754,391
Richemont Cie Finance (Consumer Staples)............................... 200 316,750
Sulzer AG (Healthcare)................................................. 780 467,925
Swiss Bank Corp. (Finance)............................................. 1,700 335,866
-----------
2,594,617
-----------
THAILAND -- 0.5%
Bangkok Metropolitan Bank PCL (Finance)................................ 251,727 185,932
Siam City Cement PCL (Materials)....................................... 8,000 92,653
-----------
278,585
-----------
UNITED KINGDOM -- 10.8%
Associated British Foods PLC (Consumer Staples)........................ 70,000 420,174
Boots Co. PLC (Consumer Discretionary)................................. 35,000 314,723
British Gas PLC (Utilities)............................................ 220,000 611,585
British Steel PLC (Materials).......................................... 135,000 344,366
British Telecommunications PLC (Utilities)............................. 62,000 333,157
BTR PLC (Industrial & Commercial)...................................... 110,000 432,210
De La Rue PLC (Information Technology)................................. 15,500 143,229
National Grid Group (Utilities)........................................ 130,000 344,230
</TABLE>
- ---------------------
46
<PAGE> 48
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Northern Foods PLC (Consumer Staples).................................. 68,000 $ 195,372
PowerGen PLC (Utilities)............................................... 39,293 286,200
Rank Organisation PLC (Information & Entertainment).................... 50,000 386,318
Reckitt & Colman (Consumer Staples).................................... 23,000 241,823
Royal Bank of Scotland Group PLC (Finance)............................. 40,000 306,259
Royal Insurance Holdings PLC (Finance)................................. 50,000 308,666
Sainsbury (J.) PLC (Consumer Discretionary)............................ 80,000 470,880
Sun Life & Provincial Holdings (Finance)............................... 70,000 241,342
United Biscuits (Consumer Staples)..................................... 20,000 66,315
Vodafone Group PLC ADR (Information & Entertainment)................... 141,217 525,260
-----------
5,972,109
-----------
UNITED STATES -- 0.1%
Dassault Systems SA (Information Technology)........................... 900 27,900
-----------
TOTAL COMMON STOCK (cost $48,170,621).................................. 52,414,361
-----------
<CAPTION>
PREFERRED STOCK -- 0.7%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL -- 0.4%
Centrais Electricas Brasileiras SA-Electrobras, Series B (Utilities)... 350,000 100,030
Petroleo Brasileiros SA (Energy)....................................... 990,000 121,754
-----------
221,784
-----------
LUXEMBOURG -- 0.3%
Quilmes Industrial Quinsa Societe (Consumer Staples)................... 14,300 146,575
-----------
TOTAL PREFERRED STOCK (cost $372,326).................................. 368,359
-----------
<CAPTION>
RIGHTS -- 0.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 0.0%
Daimler Benz AG (cost $0).............................................. 1,150 0
-----------
TOTAL INVESTMENT SECURITIES (cost $48,542,947)......................... 52,782,720
-----------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 0.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
United States Treasury Bills 5.02% due 8/15/96 @
(cost $248,431)...................................................... $ 250,000 248,431
-----------
<CAPTION>
REPURCHASE AGREEMENT -- 4.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account @ (Note 3)
(cost $2,375,000).................................................... 2,375,000 2,375,000
-----------
TOTAL INVESTMENTS --
(cost $51,166,378) 100.1% 55,406,151
Liabilities in excess of other assets -- (0.1) (78,193)
----- -----------
NET ASSETS -- 100.0% $55,327,958
===== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR - American Depositary Receipts
GDR - Global Depositary Receipts
GDS - Global Depositary Shares
---------------------
47
<PAGE> 49
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-----------------------------------------------------------------------------------------------------------
UNREALIZED
NUMBER OF EXPIRATION VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE JUNE 30, 1996 DEPRECIATION
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2 Long Deutsche Terminboerse September 1996 $ 340,166 $ (1,004)
Dax Stock Index Future
5 Long Tokyo Stock Exchange September 1996 779,959 11,168
Topix Future
3 Long Toronto 35 Index Future -- September 1996 290,225 1,926
--------------
Toronto Futures Exchange
Net Unrealized Appreciation ............................. $ 12,090
==============
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AUD 910,000 USD 715,533 9/25/96 $ 3,909
USD 293,634 DEM 444,738 9/30/96 501
USD 633,091 JPY 68,513,100 9/30/96 1,638
--------
6,048
--------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
USD 289,819 CAD 394,777 9/30/96 $ (95)
--------
Net Unrealized Appreciation.................. $ 5,953
========
AUD -- Australian Dollar
CAD -- Canadian Dollar
DEM -- Deutsche Mark
JPY -- Japanese Yen
USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
- ---------------------
48
<PAGE> 50
- ---------------------
ANCHOR SERIES TRUST
NATURAL RESOURCES
PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 97.5% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 31.3%
Energy Sources -- 31.3%
Alberta Energy Co., Ltd. .............................................. 40,000 $ 754,413
Amerada Hess Corp. .................................................... 12,390 664,414
Anadarko Petroleum Corp. .............................................. 10,000 580,000
Anderson Exploration Ltd.+............................................. 32,844 312,731
Barrett Resources Corp.+............................................... 30,000 892,500
Canadian Natural Resources Ltd. ADR.................................... 30,000 558,119
Elf Aquitaine ADR...................................................... 16,500 606,375
Enron Oil & Gas Co. ................................................... 600 16,725
Imperial Oil Ltd. ..................................................... 20,000 842,500
Northstar Energy Corp.+................................................ 30,000 291,145
PanCanadian Petroleum Ltd. ADR......................................... 30,000 1,175,566
Poco Petroleum Ltd. ADR+............................................... 40,000 307,625
Santa Fe Energy Resources, Inc.+....................................... 30,000 356,250
Sun Co., Inc. ......................................................... 19,800 601,424
Talisman Energy, Inc.+................................................. 27,000 627,884
Total SA ADR........................................................... 30,000 1,113,750
Ultramar Corp. ........................................................ 20,200 585,800
Unocal Corp. .......................................................... 24,020 810,675
Vastar Resources, Inc. ................................................ 20,000 747,500
YPF Sociedad Anonima ADR............................................... 28,000 630,000
-----------
12,475,396
-----------
MATERIALS -- 66.2%
Forest Products -- 15.7%
Boise Cascade Corp. ................................................... 20,500 750,812
Bowater, Inc. ......................................................... 14,000 526,750
International Paper Co. ............................................... 20,000 737,500
Longview Fibre Co. .................................................... 30,000 510,000
Temple-Inland, Inc. ................................................... 14,500 677,875
Weyerhaeuser Co. ...................................................... 30,000 1,275,000
Willamette Industries, Inc. ........................................... 30,000 1,785,000
Metals & Minerals -- 50.5%
Agnico Eagle Mines Ltd. ............................................... 32,000 520,000
Algoma Steel, Inc.+.................................................... 170,000 616,250
Alumax, Inc.+.......................................................... 20,200 613,575
Aluminum Co. of America................................................ 17,600 1,009,800
Amax Gold, Inc.+....................................................... 94,000 517,000
Barrick Gold Corp. .................................................... 50,000 1,356,250
British Steel PLC ADR.................................................. 19,000 482,125
Capral Aluminum Ltd. .................................................. 148,555 429,613
Carbide/Graphite Group, Inc.+.......................................... 42,100 789,375
Century Aluminum Co. .................................................. 3,100 48,825
Dominion Mining Ltd. ADR............................................... 139,680 81,228
Easco, Inc. ........................................................... 59,000 486,750
Freeport McMoRan Copper & Gold, Inc. .................................. 20,000 597,500
Hecla Mining Co.+...................................................... 17,300 121,100
Homestake Mining Co. .................................................. 29,685 508,356
Newcrest Mining Ltd. ADR............................................... 93,148 373,324
</TABLE>
---------------------
49
<PAGE> 51
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals (continued)
Newmont Gold Co. ...................................................... 12,600 $ 634,725
Newmont Mining Corp. .................................................. 30,150 1,488,656
North Flinders Mines Ltd. ............................................. 66,400 440,406
Phelps Dodge Corp. .................................................... 21,500 1,341,063
Placer Dome, Inc. ..................................................... 30,000 716,250
Poseidon Gold Ltd. ADR................................................. 157,405 387,173
RTZ Corp. PLC.......................................................... 10,000 148,004
Santa Fe Pacific Gold Corp. ........................................... 100,000 1,412,500
Solv Ex Corp. ......................................................... 19,300 376,350
Sons Of Gwalia Ltd. ADR................................................ 133,000 940,668
Titanium Metals Corp.+................................................. 18,600 481,275
TVX Gold, Inc.+........................................................ 34,000 246,500
UCAR International, Inc.+.............................................. 41,500 1,727,437
USINOR SACILOR......................................................... 47,000 678,465
Western Mining Corp. Holdings Ltd. ADS................................. 80,000 572,102
-----------
26,405,582
-----------
TOTAL INVESTMENT SECURITIES (cost $35,010,334)......................... 38,880,978
-----------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $1,180,000).................................................... $1,180,000 1,180,000
-----------
TOTAL INVESTMENTS --
(cost $36,190,334) 100.5% 40,060,978
Liabilities in excess of other assets -- (0.5) (205,251)
----- -----------
NET ASSETS -- 100.0% $39,855,727
===== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
ADR - American Depositary Receipts
ADS - American Depositary Shares
See Notes to Financial Statements
- ---------------------
50
<PAGE> 52
- ---------------------
ANCHOR SERIES TRUST
TARGET '98 PORTFOLIO INVESTMENT PORTFOLIO -- JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 99.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 11.3%
American General Corp. 9.70% 1998...................................... $ 250,000 $ 262,220
Household Finance Corp. 9.80% 1998..................................... 250,000 263,622
International Lease Finance Corp. 7.50% 1999........................... 250,000 254,683
Japan Financial Corp. 9.25% 1998....................................... 300,000 316,167
United Virginia Bankshares, Inc. 8.63% 1998............................ 200,000 206,372
------------
1,303,064
------------
SUPRANATIONALS -- 4.2%
International Bank for Reconstruction & Development zero coupon 1998... 550,000 489,968
------------
U.S. GOVERNMENT & AGENCIES -- 77.3%
Federal Judiciary Office Building zero coupon 1998..................... 1,000,000 877,190
Federal National Mortgage Association zero coupon 1998................. 2,000,000 1,751,198
Government Trust Certificates Series 3D zero coupon 1998............... 1,500,000 1,289,115
Government Trust Certificates Series T zero coupon 1998................ 2,600,000 2,234,466
Tennessee Valley Authority zero coupon 1998............................ 1,000,000 852,550
Treasury Investment Growth Receipts zero coupon 1998................... 1,000,000 865,040
United States Treasury Note Strip Prior zero coupon 1998............... 1,250,000 1,080,200
------------
8,949,759
------------
UTILITIES -- 6.3%
Michigan Bell Telephone Co. 9.25% 1998................................. 300,000 317,490
Quebec Hydroelectric 9.55% 1998........................................ 100,000 103,777
Virginia Electric & Power Co. 9.38% 1998............................... 300,000 314,532
------------
735,799
------------
TOTAL INVESTMENT SECURITIES (cost $11,176,838)......................... 11,478,590
------------
<CAPTION>
REPURCHASE AGREEMENT -- 0.8%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Joint Repurchase Agreement Account (Note 3)
(cost $90,000)....................................................... 90,000 90,000
------------
TOTAL INVESTMENTS --
(cost $11,266,838) 99.9% 11,568,590
Other assets less liabilities -- 0.1 6,898
----- ------------
NET ASSETS -- 100.0% $11,575,488
===== ============
</TABLE>
-----------------------------
See Notes to Financial Statements
---------------------
51
<PAGE> 53
- ---------------------
ANCHOR SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MONEY GOVERNMENT & FIXED
MARKET QUALITY BOND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities at value*............................. $ -- $220,776,616 $23,114,507 $321,897,557
Short-term securities*...................................... 85,206,240 -- -- --
Repurchase agreements (cost equals market).................. -- 43,185,000 270,000 6,565,000
Cash........................................................ 1,175 4,416 3,770 24,364
Foreign currency............................................ -- -- -- --
Receivables for --
Dividends and interest.................................... 301,651 2,241,896 494,581 331,650
Fund shares sold.......................................... 60,604 427,291 7,870 245,761
Sales of investments...................................... -- -- -- 3,760,766
Variation margin on future contracts...................... -- -- -- --
Foreign currency contracts................................ -- -- -- --
Prepaid expenses............................................ 16,601 37,289 109 33,118
Unrealized appreciation on foreign currency contracts....... -- -- -- --
-------------------------------------------------------
Total assets....................................... 85,586,271 266,672,508 23,890,837 332,858,216
-------------------------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 1,839,007 1,483,927 5,349 1,319,861
Management fees........................................... 34,048 115,929 12,130 194,946
Purchases of investments.................................. -- 25,011,719 70,203 5,662,291
Foreign currency contracts................................ -- -- -- --
Other accrued expenses...................................... 37,021 80,308 19,839 106,811
Unrealized depreciation on foreign currency contracts....... -- -- -- --
------------------------------------------------------
Total liabilities.................................. 1,910,076 26,691,883 107,521 7,283,909
------------------------------------------------------
NET ASSETS:................................................. $83,676,195 $239,980,625 $23,783,316 $325,574,307
=======================================================
Shares of beneficial interest outstanding (unlimited shares
authorized)............................................... 83,676,195 17,240,946 1,718,313 14,886,640
Net asset value per share................................... $ 1.00 $ 13.92 $ 13.84 $ 21.87
=======================================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................. $83,676,195 $223,135,451 $23,515,061 $218,317,420
Accumulated undistributed net investment income............. 721 21,067,530 2,741,372 3,362,567
Accumulated undistributed net realized gain (loss) on
investments, futures contracts, options contracts and
foreign currency.......................................... (721) 688,475 (2,202,040) 33,258,445
Unrealized appreciation (depreciation) on investments....... -- (4,910,831) (271,077) 70,635,875
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... -- -- -- --
Unrealized depreciation on future contracts................. -- -- -- --
-------------------------------------------------------
$83,676,195 $239,980,625 $23,783,316 $325,574,307
=======================================================
---------------
*Cost
Investment securities...................................... $ -- $225,687,447 $23,385,584 $251,261,682
=======================================================
Short-term securities...................................... $85,206,240 $ -- $ -- $ --
=======================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
52
<PAGE> 54
- ---------------------
<TABLE>
<CAPTION>
STRATEGIC CAPITAL GROWTH AND FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION INCOME SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$40,255,984 $56,873,000 $149,814,279 $436,171,085 $30,864,828 $52,782,720 $38,880,978 $11,478,590
-- -- -- -- -- 248,431 -- --
700,000 1,925,000 3,880,000 28,235,000 605,000 2,375,000 1,180,000 90,000
3,306 2,658 4,016 2,232 718 3,907 4,790 2,077
-- 20,739 -- 8,714 -- 41,748 13,741 --
979,886 377,264 621,843 89,936 85,057 334,562 104,679 32,056
234,762 968 5,069 2,961,499 30,543 1,927 210,346 31
496,204 344,540 -- 6,954,808 -- 198,642 -- --
-- -- -- -- -- 2,855 -- --
-- 405,579 -- -- -- 619,160 -- --
7,984 12,390 25,152 4,255 2,693 2,889 1,209 512
-- -- -- -- -- 6,048 -- --
----------------------------------------------------------------------------------------------------------------
42,678,126 59,962,138 154,350,359 474,427,529 31,588,839 56,617,889 40,395,743 11,603,266
----------------------------------------------------------------------------------------------------------------
91,781 8,087 82,371 554,402 29,814 29,487 66,141 5,144
24,237 48,592 126,877 257,231 17,885 41,057 25,611 5,950
847,041 474,312 -- 2,152,333 41,753 521,653 411,450 --
-- 404,633 -- -- -- 617,131 -- --
30,245 58,519 57,745 129,035 24,375 80,508 36,814 16,684
-- -- -- -- -- 95 -- --
----------------------------------------------------------------------------------------------------------------
993,304 994,143 266,993 3,093,001 113,827 1,289,931 540,016 27,778
----------------------------------------------------------------------------------------------------------------
$41,684,822 $58,967,995 $154,083,366 $471,334,528 $31,475,012 $55,327,958 $39,855,727 $11,575,488
================================================================================================================
4,852,284 4,673,215 11,301,338 17,096,045 2,404,154 4,337,522 2,455,274 913,192
$ 8.59 $ 12.62 $ 13.63 $ 27.57 $ 13.09 $ 12.76 $ 16.23 $ 12.68
================================================================================================================
$49,337,809 $37,916,456 $99,991,253 $317,385,063 $27,961,993 $48,439,091 $33,180,362 $9,908,182
6,589,016 2,449,356 7,482,296 1,279,890 2,250,078 1,234,603 604,207 1,594,646
(14,442,701) 9,018,754 20,363,021 40,956,181 (380,079) 1,392,150 2,200,497 (229,092)
200,698 9,582,163 26,246,816 111,713,350 1,643,020 4,239,773 3,870,644 301,752
-- 1,266 (20) 44 -- 10,250 17 --
-- -- -- -- -- 12,091 -- --
----------------------------------------------------------------------------------------------------------------
$41,684,822 $58,967,995 $154,083,366 $471,334,528 $31,475,012 $55,327,958 $39,855,727 $11,575,488
================================================================================================================
$40,055,286 $47,290,837 $123,567,463 $324,457,735 $29,221,808 $48,542,947 $35,010,334 $11,176,838
================================================================================================================
$ -- $ -- $ -- $ -- $ -- $ 248,431 $ -- $ --
================================================================================================================
</TABLE>
---------------------
53
<PAGE> 55
- ---------------------
ANCHOR SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT &
MONEY MARKET QUALITY BOND FIXED INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest...................................................... $2,366,547 $ 7,770,468 $ 960,119 $ 164,268
Dividends*.................................................... -- -- -- 2,979,790
---------------------------------------------------------
Total income........................................... 2,366,547 7,770,468 960,119 3,144,058
---------------------------------------------------------
Expenses:
Investment management fees.................................... 215,996 693,163 79,857 1,164,409
Custodian fees................................................ 18,010 52,280 17,275 55,460
Audit and tax consulting fees................................. 10,300 24,345 4,765 33,960
Trustees' fees................................................ 3,111 7,730 1,225 10,940
Reports to investors.......................................... 2,365 17,500 685 25,615
Insurance expense............................................. 1,216 2,557 332 3,490
Legal fees.................................................... 890 1,920 -- 2,710
Other expenses................................................ 2,079 5,328 632 10,098
---------------------------------------------------------
Total expenses......................................... 253,967 804,823 104,771 1,306,682
---------------------------------------------------------
Net investment income........................................... 2,112,580 6,965,645 855,348 1,837,376
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain on investments................................ -- 238,117 410,882 19,389,453
Net realized foreign exchange gain (loss) on other assets and
liabilities................................................... -- -- -- --
Net realized gain on futures contracts.......................... -- -- -- --
Change in unrealized appreciation/depreciation on investments... -- (11,771,250) (1,882,352) 15,566,333
Change in unrealized foreign exchange gain/loss on other assets
and liabilities............................................... -- -- -- --
Change in unrealized appreciation/depreciation on futures
contracts..................................................... -- -- -- --
---------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currencies............................................ -- (11,533,133) (1,471,470) 34,955,786
---------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.................................................... $2,112,580 $ (4,567,488) $ (616,122) $36,793,162
=====================================================
</TABLE>
- ---------------
* Net of foreign withholding taxes of $19,343; $41,193; $9,277; $81,066;
$3,352; $107,745; and $25,645 on Growth, Strategic Multi-Asset,
Multi-Asset, Capital Appreciation, Growth and Income, Foreign Securities,
and Natural Resources, respectively.
See Notes to Financial Statements
- ---------------------
54
<PAGE> 56
<TABLE>
<CAPTION>
STRATEGIC CAPITAL GROWTH AND FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION INCOME SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$2,097,308 $ 691,219 $2,143,249 $ 910,047 $ 277,704 $ 145,750 $ 83,431 $ 444,371
21,354 409,047 904,979 999,947 371,089 714,099 376,725 --
---------------------------------------------------------------------------------------------------------
2,118,662 1,100,266 3,048,228 1,909,994 648,793 859,849 460,156 444,371
---------------------------------------------------------------------------------------------------------
153,056 307,354 804,850 1,372,697 108,899 251,775 145,653 37,669
25,100 89,900 38,250 70,350 15,810 97,670 23,145 11,225
6,310 7,935 18,135 43,165 5,075 7,940 6,210 3,255
1,477 2,290 5,736 12,970 1,283 2,128 1,229 530
1,060 2,430 6,320 34,265 -- 2,055 4,110 --
593 774 2,018 3,979 386 714 330 162
-- 890 1,780 3,530 655 655 305 --
818 1,114 4,163 7,903 818 992 513 48
---------------------------------------------------------------------------------------------------------
188,414 412,687 881,252 1,548,859 132,926 363,929 181,495 52,889
---------------------------------------------------------------------------------------------------------
1,930,248 687,579 2,166,976 361,135 515,867 495,920 278,661 391,482
---------------------------------------------------------------------------------------------------------
267,403 5,235,203 10,559,161 24,757,638 1,090,158 3,372,425 1,893,552 25,358
-- 15,100 (59) 3,084 -- (28,186) (27,293) --
-- -- -- -- -- 336,774 -- --
(843,587) (1,642,795) (5,526,877) 43,389,361 1,086,245 85,808 35,852 (384,157)
-- (690) (12) (588) (19) (20,271) (252) --
-- -- -- -- -- (32,135) -- --
---------------------------------------------------------------------------------------------------------
(576,184) 3,606,818 5,032,213 68,149,495 2,176,384 3,714,415 1,901,859 (358,799)
---------------------------------------------------------------------------------------------------------
$1,354,064 $4,294,397 $7,199,189 $68,510,630 $2,692,251 $4,210,335 $2,180,520 $ 32,683
=========================================================================================================
</TABLE>
---------------------
55
<PAGE> 57
- ---------------------
ANCHOR SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT &
MONEY MARKET QUALITY BOND FIXED INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income..................................... $ 2,112,580 $ 6,965,645 $ 855,348 $ 1,837,376
Net realized gain on investments.......................... -- 238,117 410,882 19,389,453
Net realized foreign exchange gain (loss) on other assets
and liabilities......................................... -- -- -- --
Net realized gain on futures contracts.................... -- -- -- --
Change in unrealized appreciation/depreciation on
investments............................................. -- (11,771,250) (1,882,352) 15,566,333
Change in unrealized foreign exchange gain/loss on other
assets and liabilities.................................. -- -- -- --
Change in unrealized appreciation/depreciation on futures
contracts............................................... -- -- -- --
--------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations.............................................. 2,112,580 (4,567,488) (616,122) 36,793,162
--------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO SHAREHOLDERS:
Dividends from net investment income...................... (2,112,580) -- -- --
--------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold................................. 71,865,155 68,751,200 915,329 100,882,636
Proceeds from shares issued for reinvestment of dividends
and distributions....................................... 2,112,580 -- -- --
Cost of shares repurchased................................ (83,993,223) (49,781,815) (4,490,693) (119,958,935)
--------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions.............................. (10,015,488) 18,969,385 (3,575,364) (19,076,299)
--------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS................... (10,015,488) 14,401,897 (4,191,486) 17,716,863
NET ASSETS:
Beginning of period....................................... 93,691,683 225,578,728 27,974,802 307,857,444
--------------------------------------------------------------
End of period............................................. $ 83,676,195 $239,980,625 $ 23,783,316 $ 325,574,307
==============================================================
---------------
Undistributed net investment income....................... $ 721 $ 21,067,530 $ 2,741,372 $ 3,362,567
==============================================================
Shares issued and repurchased:
Sold...................................................... 71,865,155 4,951,858 65,699 4,868,774
Issued in reinvestment of dividends and distributions..... 2,112,580 -- -- --
Repurchased............................................... (83,993,223) (3,563,937) (323,664) (5,786,884)
--------------------------------------------------------------
Net increase (decrease)................................... (10,015,488) 1,387,921 (257,965) (918,110)
==============================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
56
<PAGE> 58
<TABLE>
<CAPTION>
STRATEGIC CAPITAL GROWTH AND FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION INCOME SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,930,248 $ 687,579 $ 2,166,976 $ 361,135 $ 515,867 $ 495,920 $ 278,661 $ 391,482
267,403 5,235,203 10,559,161 24,757,638 1,090,158 3,372,425 1,893,552 25,358
-- 15,100 (59) 3,084 -- (28,186) (27,293) --
-- -- -- -- -- 336,774 -- --
(843,587) (1,642,795) (5,526,877) 43,389,361 1,086,245 85,808 35,852 (384,157)
-- (690) (12) (588) (19) (20,271) (252) --
-- -- -- -- -- (32,135) -- --
---------------------------------------------------------------------------------------------------------------------------
1,354,064 4,294,397 7,199,189 68,510,630 2,692,251 4,210,335 2,180,520 32,683
---------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
14,349,221 1,915,085 6,843,013 209,412,343 3,582,335 14,084,426 30,917,537 662,848
-- -- -- -- -- -- -- --
(20,835,201) (11,267,347) (28,201,644) (162,806,484) (6,807,847) (16,576,266) (22,183,701) (1,894,228)
---------------------------------------------------------------------------------------------------------------------------
(6,485,980) (9,352,262) (21,358,631) 46,605,859 (3,225,512) (2,491,840) 8,733,836 (1,231,380)
---------------------------------------------------------------------------------------------------------------------------
(5,131,916) (5,057,865) (14,159,442) 115,116,489 (533,261) 1,718,495 10,914,356 (1,198,697)
46,816,738 64,025,860 168,242,808 356,218,039 32,008,273 53,609,463 28,941,371 12,774,185
---------------------------------------------------------------------------------------------------------------------------
$41,684,822 $ 58,967,995 $154,083,366 $ 471,334,528 $31,475,012 $ 55,327,958 $ 39,855,727 $11,575,488
===========================================================================================================================
$ 6,589,016 $ 2,449,356 $ 7,482,296 $ 1,279,890 $ 2,250,078 $ 1,234,603 $ 604,207 $ 1,594,646
===========================================================================================================================
1,686,043 156,504 515,585 8,112,058 281,729 1,143,173 1,885,205 52,578
-- -- -- -- -- -- -- --
(2,452,125) (919,165) (2,115,479) (6,356,750) (542,757) (1,343,287) (1,343,954) (149,766)
---------------------------------------------------------------------------------------------------------------------------
(766,082) (762,661) (1,599,894) 1,755,308 (261,028) (200,114) 541,251 (97,188)
===========================================================================================================================
</TABLE>
---------------------
57
<PAGE> 59
- ---------------------
ANCHOR SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
GOVERNMENT & FIXED
MONEY MARKET QUALITY BOND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 6,214,069 $ 14,132,112 $1,820,583 $ 1,534,546
Net realized gain (loss) on investments................ -- 8,288,042 450,299 13,885,804
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- -- -- 1,682
Net realized loss on futures contracts................. -- -- -- --
Change in unrealized appreciation/depreciation on
investments.......................................... -- 16,257,191 2,644,460 48,038,490
Change in unrealized foreign exchange gain (loss) on
other assets and liabilities......................... -- -- -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- -- --
-----------------------------------------------------------
Net increase in net assets resulting from operations... 6,214,069 38,677,345 4,915,342 63,460,522
-----------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO SHAREHOLDERS:
Dividends from net investment income................... (6,214,069) (15,800,000) (2,175,000) (600,000)
Distributions from net realized gains on investments... -- -- -- (45,075,000)
-----------------------------------------------------------
Total dividends........................................ (6,214,069) (15,800,000) (2,175,000) (45,675,000)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 174,371,348 82,378,525 3,593,837 134,319,676
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 6,214,069 15,800,000 2,175,000 45,675,000
Cost of shares repurchased............................. (212,898,151) (128,007,378) (9,116,475) (136,071,781)
-----------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... (32,312,734) (29,828,853) (3,347,638) 43,922,895
-----------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS................ (32,312,734) (6,951,508) (607,296) 61,708,417
NET ASSETS:
Beginning of period.................................... 126,004,417 232,530,236 28,582,098 246,149,027
-----------------------------------------------------------
End of period.......................................... $ 93,691,683 $225,578,728 $27,974,802 $307,857,444
===========================================================
---------------
Undistributed net investment income.................... $ 721 $ 14,101,885 $1,886,024 $ 1,525,191
===========================================================
Shares issued and repurchased:
Sold................................................... 174,371,348 5,911,036 260,087 6,859,732
Issued in reinvestment of dividends and
distributions........................................ 6,214,069 1,159,208 160,992 2,382,629
Repurchased............................................ (212,898,151) (9,292,985) (660,807) (6,977,008)
-----------------------------------------------------------
Net increase (decrease)................................ (32,312,734) (2,222,741) (239,728) 2,265,353
===========================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
58
<PAGE> 60
()
<TABLE>
<CAPTION>
STRATEGIC CAPITAL GROWTH AND FOREIGN NATURAL
HIGH YIELD MULTI-ASSET MULTI-ASSET APPRECIATION INCOME SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 4,560,566 $ 1,729,338 $ 5,277,929 $ 879,808 $ 1,696,598 $ 707,451 $ 331,444 $ 1,058,818
(574,848) 3,804,739 9,801,363 16,341,623 (605,935) 3,192,282 765,009 (73,496)
-- 62,813 54,742 45,778 (843) 177,598 (594) --
-- -- -- (49,594) -- -- -- --
4,437,941 7,569,691 22,147,546 63,564,898 3,911,087 2,451,554 3,011,630 1,322,217
-- (45,810) 12 639 32 (113,395) 342 --
-- -- -- 96,925 -- 44,226 -- --
--------------------------------------------------------------------------------------------------------------------
8,423,659 13,120,771 37,281,592 80,880,077 5,000,939 6,459,716 4,107,831 2,307,539
--------------------------------------------------------------------------------------------------------------------
(5,345,000) (1,125,000) (5,910,000) (2,145,000) (2,059,675) (279,273) (365,000) (1,285,000)
-- (8,585,000) (12,550,000) (2,960,000) (1,515,325) (55,727) (510,000) --
--------------------------------------------------------------------------------------------------------------------
(5,345,000) (9,710,000) (18,460,000) (5,105,000) (3,575,000) (335,000) (875,000) (1,285,000)
29,986,515 4,822,892 20,218,971 288,502,705 4,402,376 31,832,730 27,421,662 1,032,164
5,345,000 9,710,000 18,460,000 5,105,000 3,575,000 335,000 875,000 1,285,000
(39,650,684) (19,275,150) (53,417,004) (242,708,947) (12,390,422) (53,323,700) (23,817,885) (9,759,706)
--------------------------------------------------------------------------------------------------------------------
(4,319,169) (4,742,258) (14,738,033) 50,898,758 (4,413,046) (21,155,970) 4,478,777 (7,442,542)
--------------------------------------------------------------------------------------------------------------------
(1,240,510) (1,331,487) 4,083,559 126,673,835 (2,987,107) (15,031,254) 7,711,608 (6,420,003)
48,057,248 65,357,347 164,159,249 229,544,204 34,995,380 68,640,717 21,229,763 19,194,188
--------------------------------------------------------------------------------------------------------------------
$46,816,738 $64,025,860 $168,242,808 $356,218,039 $32,008,273 $53,609,463 $28,941,371 $12,774,185
====================================================================================================================
$ 4,658,768 $ 1,761,777 $ 5,315,320 $ 918,755 $ 1,734,211 $ 738,683 $ 325,546 $ 1,203,164
====================================================================================================================
3,623,914 408,481 1,590,143 13,911,588 362,321 2,954,097 1,917,837 80,359
669,800 853,251 1,463,918 213,867 302,453 29,698 56,379 104,727
(4,777,982) (1,615,387) (4,174,813) (11,890,507) (1,026,033) (4,950,332) (1,657,363) (748,356)
---------------------------------------------------------------------------------------------------------------------
(484,268) (353,655) (1,120,752) 2,234,948 (361,259) (1,966,537) 316,853 (563,270)
=====================================================================================================================
</TABLE>
---------------------
59
<PAGE> 61
- ---------------------
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. Effective February 29, 1996, the
Convertible Securities Portfolio changed its name to the Growth and Income
Portfolio.
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.
The investment objectives for each portfolio are as follows:
The Money Market Portfolio seeks current income consistent with stability of
principal through investment in a diversified portfolio of money market
instruments maturing in 397 days or less.
The Government & Quality Bond Portfolio seeks relatively high current income,
liquidity and security of principal.
The Fixed Income Portfolio seeks a high level of current income consistent with
preservation of capital and invests primarily in investment grade, fixed income
securities.
The Growth Portfolio seeks capital appreciation primarily through investments in
growth equity securities.
The High Yield Portfolio seeks to produce high current income and secondarily
seeks capital appreciation by investing in high-yielding, high-risk, income
producing corporate bonds.
The Strategic Multi-Asset Portfolio seeks high long-term total investment return
by investing in equity securities, aggressive growth equity securities,
international equity securities, investment grade bonds, high-yield, high-risk
bonds and money market instruments.
The Multi-Asset Portfolio seeks long-term total investment return consistent
with moderate investment risk by investing in equity securities, convertible
securities, investment grade fixed income securities and money market
securities.
The Capital Appreciation Portfolio seeks long-term capital appreciation by
investing in growth equity securities which are widely diversified by industry
and company.
The Growth and Income Portfolio seeks to provide high current income and
long-term capital appreciation by investing primarily in securities that provide
the potential for growth and offer income, such as dividend-paying stocks and
securities convertible into common stock.
The Foreign Securities Portfolio seeks long-term capital appreciation through
investment primarily in equity securities issued by foreign companies.
The Natural Resources Portfolio seeks a total return through investment
primarily in equity securities of U.S. or foreign companies which are expected
to provide favorable returns in periods of rising inflation.
The Target '98 Portfolio seeks a predictable compounded investment return for
the specified time period, consistent with preservation of capital by investing
primarily in zero coupon securities and current interest-bearing, investment
grade debt obligations which are issued by the U.S. Government, its agencies and
instrumentalities, and both domestic and foreign companies.
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.
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
- ---------------------
60
<PAGE> 62
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 102% of 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.
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, the difference between the amounts of interest, dividends,
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 first business day following the trade date. Interest income is accrued
daily except when collection is not expected. Dividend income is recorded on the
ex-dividend date except for certain dividends from foreign securities which are
recorded as soon as the Fund is informed after the ex-dividend date. The Trust
does not amortize premiums or accrete discounts on fixed income securities,
other than short-term 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.
Portfolios which earn foreign income and capital gains may be subject to
foreign withholding taxes at various rates.
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.
The Trust records dividends and distributions to its shareholders on the
ex-dividend date.
USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION: The preparation of
financial statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
---------------------
61
<PAGE> 63
STATEMENT OF POSITION 93-2: The Trust follows Statement of Position 93-2
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies.
Accordingly, the amount of dividends and distributions from net investment
income and net realized capital gains are determined and presented 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. Net
investment income/loss, net realized gain/loss, and net assets were not
affected.
For the year ended December 31, 1995, 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 PAID
NET REALIZED NET REALIZED IN
INCOME/LOSS GAIN/LOSS CAPITAL
---------------------------------------------
<S> <C> <C> <C>
Money Market Portfolio........................................................ $ 721 $ (721) $ --
Government & Quality Bond Portfolio........................................... (19,876) 19,876 --
Fixed Income Portfolio........................................................ 74,215 (44,792) (29,423)
Growth Portfolio.............................................................. 2,532 (19,630) 17,098
High Yield Portfolio.......................................................... 104,236 (104,236) --
Strategic Multi-Asset Portfolio............................................... 87,570 (87,570) --
Multi-Asset Portfolio......................................................... 44,891 (44,891) --
Capital Appreciation Portfolio................................................ 2,183,947 (2,183,947) --
Growth and Income Portfolio................................................... 7,683 (7,683) --
Foreign Securities Portfolio.................................................. 121,871 (121,871) --
Natural Resources Portfolio................................................... 702 (702) --
Target '98 Portfolio.......................................................... 150,531 (150,531) --
</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, 1996, the undivided interest in a
repurchase agreement in the joint account of each portfolio of the Trust was as
follows: Government and Quality Bond Portfolio, 48.5%; Fixed Income Portfolio,
0.3%; Growth Portfolio, 7.4%; High Yield Portfolio, 0.8%; Strategic Multi-Asset
Portfolio, 2.2%; Multi-Asset Portfolio, 4.3%; Capital Appreciation Portfolio,
31.7%; Growth and Income Portfolio, 0.7%; Foreign Securities Portfolio, 2.7%;
Natural Resources Portfolio, 1.3% and Target '98 Portfolio, 0.1%. The undivided
interest for the Trust represented $89,010,000 in principal amount. As of such
date the repurchase agreement in the joint account and the collateral therefore
was as follows:
Lehman Brothers Repurchase Agreement, 5.47% dated 6/28/96, in the principal
amount of $89,010,000 repurchase price $89,050,574 due 7/1/96 collateralized by
$259,960,000 U.S. Treasury Strip due 5/15/2011, approximate aggregate value
$91,895,860.
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.
- ---------------------
62
<PAGE> 64
At June 30, 1996, the cost of investments and aggregate gross unrealized gains
and losses for each portfolio were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
GROSS GROSS UNREALIZED CAPITAL
UNREALIZED UNREALIZED GAIN (LOSS) COST OF LOSS
GAIN LOSS NET INVESTMENTS CARRYOVER EXPIRATION
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Money Market Portfolio............. $ -- $ -- $ -- $ 85,206,240 $ -- --*
Government & Quality Bond
Portfolio........................ 1,563,420 (6,474,251) (4,910,831) 268,872,447 -- --
Fixed Income Portfolio............. 254,430 (525,507) (271,077) 23,655,584 2,616,922 1996-2002
Growth Portfolio................... 74,397,505 (3,761,630) 70,635,875 257,826,682 -- --
High Yield Portfolio............... 1,165,012 (964,314) 200,698 40,755,286 14,696,667 1997-2003
Strategic Multi-Asset Portfolio.... 10,507,922 (925,759) 9,582,163 49,215,837 -- --
Multi-Asset Portfolio.............. 28,349,639 (2,102,823) 26,246,816 127,447,463 -- --
Capital Appreciation Portfolio..... 124,100,823 (12,387,473) 111,713,350 352,692,735 -- --
Growth and Income Portfolio........ 2,104,566 (461,546) 1,643,020 29,826,808 1,470,924 2003
Foreign Securities Portfolio....... 5,787,994 (1,548,221) 4,239,773 51,166,378 2,275,439 2000-2001
Natural Resources Portfolio........ 4,839,291 (968,647) 3,870,644 36,190,334 -- --*
Target '98 Portfolio............... 384,169 (82,417) 301,752 11,266,838 254,450 2002-2003
</TABLE>
The Government & Quality Bond, Fixed Income and Foreign Securities utilized
capital loss carryover of $6,177,631, $183,473 and $3,191,390, respectively, to
partially offset the portfolios' net taxable gains realized and recognized in
the year ended December 31, 1995.
* Post 10/31 Capital Loss Deferrals: Money Market $721 and Natural Resources
$386.
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.
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% Growth and Income $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>
---------------------
63
<PAGE> 65
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%
Growth and Income > $ 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, 1996, no such waiver was
required. For the six months ended June 30, 1996, SAAMCo received fees of
$5,335,378 from the Trust, of which SAAMCo informed the Trust that $3,725,839
was retained and $1,609,539 was allocated to WMC.
NOTE 6. SECURITIES TRANSACTIONS: The portfolios had the following purchases and
sales of long-term securities for the six months ended June 30, 1996:
<TABLE>
<CAPTION>
MONEY GOVERNMENT & FIXED STRATEGIC
MARKET QUALITY BOND INCOME GROWTH HIGH YIELD MULTI-ASSET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases................................ $ -- $139,704,656 $13,152,722 $72,319,070 $13,511,902 $15,200,474
Sales.................................... -- 103,494,759 12,754,997 90,487,107 16,247,012 23,049,228
U.S. Government Securities included above
were as follows:
Purchases of U.S. Government
Securities............................. -- 119,896,939 8,906,789 -- -- --
Sales of U.S. Government Securities...... -- 93,344,309 5,711,681 -- -- 3,380,287
<CAPTION>
CAPITAL GROWTH FOREIGN NATURAL
MULTI-ASSET APPRECIATION AND INCOME SECURITIES RESOURCES TARGET '98
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases................................ $55,319,190 $142,393,231 $28,023,207 $24,917,327 $20,736,307 $ --
Sales.................................... 59,191,704 102,359,460 30,394,096 24,167,051 11,370,845 1,053,850
U.S. Government Securities included above
were as follows:
Purchases of U.S. Government
Securities............................. 25,595,339 -- -- -- -- --
Sales of U.S. Government Securities...... 25,826,158 -- -- -- -- 650,641
</TABLE>
- ---------------------
64
<PAGE> 66
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,
1996, the following portfolios of the Trust paid brokerage commissions to Royal
of:
<TABLE>
<CAPTION>
AMOUNT
------
<S> <C>
Growth Portfolio................................................................ $ 150
Strategic Multi-Asset Portfolio................................................. 3,441
Capital Appreciation Portfolio.................................................. 162
Growth and Income Portfolio..................................................... 12
Foreign Securities Portfolio.................................................... 552
Natural Resources Portfolio..................................................... 325
------
$4,642
======
</TABLE>
NOTE 8. FINANCIAL INVESTMENTS WITH OFF-BALANCE SHEET RISK: At June 30, 1996,
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, but in
no event for a period greater than 10 years, each Eligible Trustee will be
credited with an amount equal to 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. In addition, an
amount equal to 8.5% of any amounts credited under the preceding clause during
prior years, is added to each Eligible Trustee's account until such Eligible
Trustee reaches his or her 70th birthday. An Eligible Trustee may receive
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, 1996, the
Trust had accrued $68,802 for the Retirement Plan, which is included in accrued
expenses on the Statement of Assets and Liabilities and for the six months ended
June 30, 1996, expensed $17,106 for the Retirement Plan, which is included in
Trustee fees and expenses on the Statement of Operations.
---------------------
65
<PAGE> 67
- ---------------------
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
12/31/92 $ 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
12/31/95 1.00 0.05 -- 0.05 (0.05) -- 1.00 5.6
6/30/96# 1.00 0.02 -- 0.02 (0.02) -- 1.00 2.4
Government & Quality Bond Portfolio
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)
12/31/95 12.86 0.90 1.55 2.45 (1.08) -- 14.23 19.4
6/30/96# 14.23 0.43 (0.74) (0.31) -- -- 13.92 (2.2)
Fixed Income Portfolio
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)
12/31/95 12.90 0.90 1.52 2.42 (1.16) -- 14.16 19.2
6/30/96# 14.16 0.46 (0.78) (0.32) -- -- 13.84 (2.3)
Growth Portfolio
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)
12/31/95 18.18 0.11 4.62 4.73 (0.05) (3.38) 19.48 26.3
6/30/96# 19.48 0.12 2.27 2.39 -- -- 21.87 12.3
High Yield Portfolio
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)
12/31/95 7.87 0.77 0.67 1.44 (0.98) -- 8.33 18.8
6/30/96# 8.33 0.37 (0.11) 0.26 -- -- 8.59 3.1
Strategic Multi-Asset Portfolio
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)
12/31/95 11.29 0.32 2.18 2.50 (0.23) (1.78) 11.78 22.8
6/30/96# 11.78 0.14 0.70 0.84 -- -- 12.62 7.1
<CAPTION>
NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME PORTFOLIO AVERAGE
PERIOD PERIOD TO AVERAGE TO AVERAGE TURNOVER COMMISSION
ENDED (000'S) NET ASSETS NET ASSETS RATE PER SHARE@
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Portfolio
12/31/92 $127,262 0.6% 3.3% %-- $ NA
12/31/93 99,309 0.6 2.7 -- NA
12/31/94 126,004 0.6 3.8 -- NA
12/31/95 93,692 0.6 5.5 -- NA
6/30/96# 83,676 0.6+ 4.9+ -- NA
Government & Quality Bond Portfolio
12/31/92 207,860 0.8 7.3 76.4 NA
12/31/93 264,660 0.7 6.2 93.2 NA
12/31/94 232,530 0.7 6.4 117.6 NA
12/31/95 225,579 0.7 6.5 135.2 NA
6/30/96# 239,981 0.7+ 6.2+ 50.7 NA
Fixed Income Portfolio
12/31/92 40,001 0.8 6.8 31.8 NA
12/31/93 41,116 0.8 6.3 45.9 NA
12/31/94 28,582 0.8 6.5 56.5 NA
12/31/95 27,975 0.8 6.5 76.7 NA
6/30/96# 23,783 0.8+ 6.7+ 50.9 NA
Growth Portfolio
12/31/92 279,291 0.9 0.5 37.9 NA
12/31/93 311,050 0.9 0.2 66.3 NA
12/31/94 246,149 0.8 0.2 74.8 NA
12/31/95 307,857 0.9 0.6 92.1 NA
6/30/96# 325,574 0.8+ 1.2+ 22.9 .0475
High Yield Portfolio
12/31/92 47,140 0.9 9.7 134.9 NA
12/31/93 79,303 0.9 8.5 121.1 NA
12/31/94 48,057 0.9 9.0 97.9 NA
12/31/95 46,817 0.9 9.2 68.1 NA
6/30/96# 41,685 0.9+ 8.8+ 33.1 --
Strategic Multi-Asset Portfolio
12/31/92 79,621 1.3 1.8 57.5 NA
12/31/93 76,466 1.3 1.2 73.9 NA
12/31/94 65,357 1.3 1.8 63.7 NA
12/31/95 64,026 1.3 2.7 36.9 NA
6/30/96# 58,968 1.3+ 2.2+ 25.3 .0085
</TABLE>
- ---------------
* Selected data for a share of beneficial interest outstanding throughout each
period (calculated based upon average shares outstanding)
** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company, First SunAmerica Life Insurance Company,
Phoenix Mutual Life Insurance Company and Presidential Life Insurance
Company. If such expenses had been included, total return would have been
lower for each period presented.
@ The average commission per share is derived by taking the Agency commissions
paid on equity securities trades and dividing by the number of shares
purchased or sold.
# Unaudited
+ Annualized
- ---------------------
66
<PAGE> 68
- ---------------------
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
12/31/92 $ 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)
12/31/95 11.71 0.40 2.47 2.87 (0.49) (1.05) 13.04 24.9
6/30/96# 13.04 0.18 0.41 0.59 -- -- 13.63 4.5
Capital Appreciation Portfolio
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)
12/31/95 17.51 0.06 6.00 6.06 (0.15) (0.20) 23.22 34.6
6/30/96# 23.22 0.02 4.33 4.35 -- -- 27.57 18.7
Growth and Income Portfolio
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)
12/31/95 11.56 0.61 1.29 1.90 (0.83) (0.62) 12.01 16.6
6/30/96# 12.01 0.21 0.87 1.08 -- -- 13.09 9.0
Foreign Securities Portfolio
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)
12/31/95 10.55 0.13 1.19 1.32 (0.05) (0.01) 11.81 12.6
6/30/96# 11.81 0.11 0.84 0.95 -- -- 12.76 8.0
Natural Resources Portfolio
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
12/31/95 13.29 0.18 2.15 2.33 (0.21) (0.29) 15.12 17.5
6/30/96# 15.12 0.12 0.99 1.11 -- -- 16.23 7.3
Target '98 Portfolio
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)
12/31/95 12.20 0.86 0.88 1.74 (1.30) -- 12.64 14.6
6/30/96# 12.64 0.41 (0.37) 0.04 -- -- 12.68 0.3
<CAPTION>
NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME (LOSS) PORTFOLIO AVERAGE
PERIOD PERIOD TO AVERAGE TO AVERAGE TURNOVER COMMISSION
ENDED (000'S) NET ASSETS NET ASSETS RATE PER SHARE@
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Multi-Asset Portfolio
12/31/92 $207,533 1.1% 3.1% 38.6% $ NA
12/31/93 208,900 1.1 2.6 48.2 NA
12/31/94 164,159 1.1 3.0 82.5 NA
12/31/95 168,243 1.1 3.2 85.9 NA
6/30/96# 154,083 1.1+ 2.7+ 35.6 .0546
Capital Appreciation Portfolio
12/31/92 83,414 0.9 0.1 92.9 NA
12/31/93 182,515 0.9 (0.2) 111.2 NA
12/31/94 229,544 0.8 (0.1) 64.0 NA
12/31/95 356,218 0.8 0.3 60.1 NA
6/30/96# 471,335 0.8+ 0.2+ 26.9 .0506
Growth and Income Portfolio
12/31/92 23,723 1.0 5.6 86.5 NA
12/31/93 41,555 0.9 4.4 86.2 NA
12/31/94 34,995 0.9 4.9 50.7 NA
12/31/95 32,008 0.9 5.2 88.8 NA
6/30/96# 31,475 0.9+ 3.3+ 92.2 .0460
Foreign Securities Portfolio
12/31/92 29,204 1.3 1.4 144.2 NA
12/31/93 72,579 1.3 0.5 47.7 NA
12/31/94 68,641 1.2 1.0 73.9 NA
12/31/95 53,609 1.2 1.2 33.0 NA
6/30/96# 55,328 1.3+ 1.8+ 47.7 .0069
Natural Resources Portfolio
12/31/92 8,796 1.3 2.1 18.7 NA
12/31/93 18,255 1.1 1.3 34.5 NA
12/31/94 21,230 1.0 1.7 36.0 NA
12/31/95 28,941 1.0 1.3 32.0 NA
6/30/96# 39,856 0.9+ 1.4+ 31.7 .0459
Target '98 Portfolio
12/31/92 19,227 0.9 6.0 37.3 NA
12/31/93 20,500 0.9 5.7 20.8 NA
12/31/94 19,194 0.8 6.5 9.2 NA
12/31/95 12,774 0.9 6.7 38.6 NA
6/30/96# 11,575 0.9+ 6.5+ -- NA
</TABLE>
- ---------------
* Selected data for a share of beneficial interest outstanding throughout each
period (calculated based upon average shares outstanding)
** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company, First SunAmerica Life Insurance Company,
Phoenix Mutual Life Insurance Company and Presidential Life Insurance
Company. If such expenses had been included, total return would have been
lower for each period presented.
@ The average commission per share is derived by taking the Agency commissions
paid on equity securities trades and dividing by the number of shares
purchased or sold.
# Unaudited
+ Annualized
---------------------
67
<PAGE> 69
A-1075
