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Previous: BERRY & BOYLE CLUSTER HOUSING PROPERTIES, 10-Q, 1995-08-10 |
Next: CINCINNATI MICROWAVE INC, 10-Q, 1995-08-10 |
SEMI-ANNUAL REPORT for the six months ended May 31, 1995
AMERICAN VARIABLE INSURANCE SERIES
<PAGE>
American Variable Insurance Series
Fund Results at a Glance
<TABLE>
<CAPTION>
Total Returns
--------- ----------- ---------- ----------
for periods ended 6/30/95
----------- ---------- ----------
for period 1 Year 5-Year Average 10-Year Average
ended 5/31/95 Annual Compound Annual Compound
5 months Return Return
<S> <C> <C> <C> <C>
Growth Fund +16.40% +30.41% +13.82% +17.05%
International Fund +4.05 +9.32 +7.89 +8.68*
(since 5/1/90)
Growth-Income Fund +16.43 +22.17 +11.67 +13.61
Asset Allocation Fund +15.82 +18.15 +10.77 +9.48*
(since 8/1/89)
High-Yield Bond Fund +13.16 +10.39 +11.82 +12.42
U.S. Government/AAA-Rated +8.92 +9.88 +8.89 +8.63*
Securities Fund
(since 12/1/85)
Cash Management Fund+ +2.83 +5.08 +4.40 +5.75
</TABLE>
* Figure reflects average annual return for the lifetime of the fund, which is
shorter than the complete 10-year period.
+ On 6/30/95 the seven-day yield was 6.18%.
The investment results in the table and elsewhere in this report are for the
funds in American Variable Insurance Series. The variable annuity and life
insurance contracts that use the Series funds contain certain fees and expenses
not reflected here. Investment results through May 31, 1995 cover the first
half of our fiscal year. Investment results as of June 30, 1995 comply with a
Securities and Exchange Commission requirement to disclose 1-year, 5-year and
10-year investment results for American Variable Insurance Series as of the end
of the most recent calendar quarter.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. FUND PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR UNITS.
UNITS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY, THE U.S.
GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. Investments in stocks and
bonds are subject to risks, including stock and bond price fluctuations.
Accordingly, contractholders should maintain a long-term perspective.
Investments outside the U.S. (especially those in developing countries) are
subject to additional risks, including currency fluctuations, political and
social instability, differing securities regulations and accounting standards,
limited public information, possible changes in taxation, and periods of
illiquidity. High-yield bonds tend to be subject to greater price swings and
default risks 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 an accelerated return of principal. Money market
instruments offer stability and income but, as with any investment, results are
not guaranteed.
<PAGE>
DEAR INVESTORS:
This report covers the first half of fiscal 1995 - the six months ended May 31
- for American Variable Insurance Series, which serves as the underlying
investment vehicle for your contract. We are pleased to report that over this
period, all of the Series funds gained ground. For many funds, the advance was
considerable.
Over the six-month period, investors witnessed a trade dispute with Japan, the
devaluation of the Mexican peso, and derivative-based losses by public and
private institutions both here and abroad. While such developments affected
certain foreign markets, they were largely shrugged off by U.S. investors. At
home, people chose to focus their attention on reports of strong corporate
earnings, healthy exports, a decline in intermediate- and long-term interest
rates, and continued low inflation.
The U.S. stock and bond markets also have been buoyed by fresh hopes that a
newly elected Congress will slow the rate of government spending, cut the
federal budget deficit and provide additional incentives to save and invest.
While achieving these ends would indeed be positive for the financial markets
in the years to come, changes in the status quo often prove unsettling over the
short term. For now, of course, it remains to be seen what legislation will be
actually signed into law.
We remain optimistic about the long-term prospects for the Series funds, but
we would like to point out that after a brisk advance in stock or bond prices,
it is not unusual for markets to pause or retrace part of their earlier gains.
It is also worth noting that the current bull market in stocks in the United
States appears to be in a very mature phase. It has been 56 months since the
unmanaged Standard & Poor's 500 Composite Index experienced a correction of 10%
or more. Until now, the longest interval between such corrections was less than
four years, and the average is about one and a half years. As always, we
believe it is important to maintain a diversified portfolio and a long-term
perspective.
Here are brief comments on the investment activities of each of the funds.
Longer term results can be found in the table on the opposite page.
THE GROWTH FUND rose 16.4% over the six months ended May 31. This fund invests
in a wide range of companies that appear to offer superior opportunities for
long-term growth of capital. Throughout the period, strong consumer and
business demand for high-tech products lifted the stock prices of companies
such as Intel (+78.3%), LSI Logic (+57.3%), Adobe Systems (+56.8%), Silicon
Graphics (+26.4%), and Oracle Systems (+25.9%). Each of these issues is among
the fund's 10 largest holdings. Altogether, they account for more than 12% of
the fund's net assets. Media and entertainment companies such as News Corp.
(+38.6%), Walt Disney (+27.5%), and Capital Cities/ABC (+18.0%) also appear
among the 10 largest holdings. Tele-Communications, a major cable television
holding, was an exception to broad strength in this area, declining 11.1%. Both
technology and media/entertainment have been prominent themes in the fund for
many years and have made significant contributions to the fund's longer term
results. During the past six months, 21 holdings were eliminated from the
portfolio and 24 were added. Many of those stocks that were sold did not live
up to expectations or, conversely, did better than we felt they deserved, so
that the combination of valuation and future prospects was not as attractive.
The fund typically continues to hold out-of-favor stocks if their long-term
outlook remains promising.
THE INTERNATIONAL FUND had a gain of 4.0% during the first half of the fiscal
year. During this period, most major non-U.S. markets posted relatively modest
advances. In many cases these advances were augmented by the strengthening of
foreign currencies against the U.S. dollar. While such a strengthening meant
that non-dollar-denominated assets were worth more in U.S. dollars, its effect
on the profitability of individual companies overseas was often more complex.
For instance, a higher deutsche mark had the effect of making German exports
more expensive. This was probably a factor in helping restrain German stock
prices, which rose an average of 1.2% in local currency, although the strong
mark translated this into a 12.4% gain in U.S. dollars, as measured by Morgan
Stanley Capital International Perspective. The fund was helped by the fact that
it had relatively few investments in Japan, where stock prices declined 17.0%
in local currency and 2.9% in U.S. dollars; but it was hurt by its investments
in Latin American markets, which fell sharply following the devaluation of the
Mexican peso last December. The latest six-month period served as a reminder
that emerging markets can be highly volatile. However, we believe that
carefully researched and selected investments in the common stocks of companies
domiciled in developing countries can - within reason and in moderation -
contribute to the fund's long-term investment results. At the end of May, 47%
of the fund's net assets were invested in European stocks; Asia and the Pacific
region accounted for 22% of net assets; investments in the Americas (including
Canada) and other areas accounted for approximately 7%, while 24% was held in
the form of cash and equivalents. Altogether, emerging market investments made
up 6.6% of fund assets at the fiscal close. The fund is not invested in U.S.
stocks.
THE GROWTH-INCOME FUND increased 16.4% during the semi-annual period. Many of
the fund's interest-sensitive investments, which were adversely affected by
rising rates last year, rebounded strongly as interest rates again moved down.
One such area, banking, with approximately 8% of fund assets, constituted the
fund's largest industry sector as of May 31. U.S. companies with significant
exports or operations abroad were another area of strength for the fund. They
tended to be helped by changes in currency exchange rates that made their
products more competitive abroad and increased the value of overseas earnings
converted back to U.S. dollars. Of the 166 stocks held over the six-month
period, 153 advanced in price and 13 declined. Top gainers included Texas
Instruments (+53.2%), Bank of New York (+46.2%) and Signet Banking (+46.0%).
Like the other equity funds in the Series, the Growth-Income Fund currently
maintains a sizable cash position - 13.4% in its case - to help cushion any
market decline and take advantage of buying opportunities as they emerge.
THE ASSET ALLOCATION FUND gained 15.8% since December 1. This fund is designed
to help contract-holders benefit from major market cycles without having to
make asset allocation decisions. The entire portfolio is managed as though it
constitutes the complete investment program of a prudent investor. The equity
portion of the fund, which represented 68.1% of the portfolio on May 31, is
similar to a conservative growth and income fund. The fixed-income portion of
the fund, which made up 22.7% of the portfolio, is equivalent to a
quality-oriented bond fund. The remaining 9.2% of the fund's assets was in
short-term securities. Because this fund holds stocks, bonds and money market
instruments, it is likely to offer a greater opportunity for stability than a
less-diversified portfolio. Over the past six months, the fund had the good
fortune to add to its equity investments, most notably in the retail and
financial service areas. Many of the fund's largest individual stock holdings
once again gained significant ground. They include, in order of their
percentage of net assets within the fund: American Home Products, the fund's
largest individual holding, which appreciated 13.1% during the first half of
the fiscal year; IBM (+31.8%); Warner-Lambert (+7.1%); Eli Lilly (+19.2%) and
Rockwell International (+34.7%). Of the 102 stocks held over the six-month
period, all but Long Island Lighting (-6.7%) appreciated in price.
THE HIGH-YIELD BOND FUND rose 13.2%. Over the past six months, higher yielding
corporate bonds provided good returns. The general decline in interest rates
was the major contributor to results. The fund searches for good investments in
individual companies, making its investment approach similar to that of a stock
fund. Indeed, because of the price fluctuations inherent in the high-yield
market, this fund may be best suited for people who feel comfortable with the
risks and rewards traditionally associated with equity-type securities. The
fund's portfolio counselors make their decisions with a view toward the long
term and use intensive research to find individual firms that appear to be
undervalued by the market.
THE U.S. GOVERNMENT /AAA-RATED SECURITIES FUND gained 8.9%. Following one of
the worst bond markets on record in fiscal 1994, fixed-income markets rebounded
strongly as the Federal Reserve achieved its desired slowdown in the rate of
economic growth. Because slower growth tends to reduce demands for credit and
inflationary pressures, longer term interest rates declined. Consequently, bond
prices, which move inversely to interest rates, rallied. That left investors in
the fund with a measure of capital appreciation as well as income during the
first fiscal half. The fund is invested in top-rated fixed-income obligations,
many of which are backed by the full faith and credit of the U.S. government
for timely repayment of principal and interest. While the bulk of these assets
are in U.S. Treasury and government agency securities, a quick look through the
portfolio listing that begins on page 33 will show bonds of various types.
These include privately originated mortgage-related securities, bonds of
international development authorities, and asset-backed securities consisting
of credit card receivables. The composition of the portfolio here, as in other
Series funds, is a result of a research-driven, value-oriented approach that
focuses on each security on a case-by-case basis.
THE CASH MANAGEMENT FUND had a six-month return of 2.8% (equivalent to a 5.6%
annual rate). During the period, the fund benefited from the Federal Reserve
Board's efforts to tighten credit by raising short-term interest rates. Last
February 1, the Fed raised the federal funds rate, which is the rate banks
charge each other for overnight loans, for the seventh time in a 12-month span.
Because the fund holds short-term securities composed of commercial paper and
federal agency discount notes, it was well positioned to pass on increases in
short-term rates. (After the close of the fiscal period, the Fed lowered this
key interest rate a notch to 5.75% from 6.0% on July 6.) The fund's policy of
selecting only the highest grade investments remains firm. All of its
securities are assigned the top ratings from Standard & Poor's and Moody's
Investors Service, two major independent credit-rating agencies, or are
determined to be of comparable quality. This fund continues to offer an
alternative to investors who wish to temporarily reduce their stock or bond
investments, or for those using the fund as a base for making regular
investments into other funds.
We appreciate your support and look forward to reporting to you again
following the close of the fiscal year on November 30. We will continue to work
hard to help you realize your objectives.
Cordially,
Thomas E. Terry
Chairman of the Board
American Variable Insurance Series
James F. Rothenberg
President
American Variable Insurance Series
July 12, 1995
<PAGE>
AMERICAN VARIABLE INSURANCE SERIES
GROWTH FUND
Investment Portfolio, May 31, 1995
(unaudited)
STOCKS 87.74
CASH 12.26
<TABLE>
<CAPTION>
PERCENT
OF
LARGEST INDIVIDUAL HOLDINGS NET ASSETS
--------
<S> <C> <C> <C>
Intel 4.89
Walt Disney 2.51
Tele-Communications 2.37
Silicon Graphics 2.11
Adobe Systems 1.95
LSI Logic 1.89
Seagate Technology 1.67
Oracle Systems 1.67
News Corp. 1.58
Capital Cities/ABC 1.57
MARKET PERCENT
NUMBER OF VALUE OF
STOCKS (COMMON AND PREFERRED) SHARES (000) NET ASSETS
--------------------------- -------- ------- -------
ELECTRONIC COMPONENTS- 15.27%
Intel Corp. 1,100,200 123,360 4.89
LSI Logic Corp. /1/ 710,000 47,748 1.89
Seagate Technology /1/ 1,175,000 42,153 1.67
National Semiconductor Corp. /1/ 1,365,000 34,125 1.35
Texas Instruments Inc. 285,000 32,953 1.31
Micron Technology, Inc. 625,000 27,891 1.11
Analog Devices, Inc. /1/ 682,500 21,243 .84
Newbridge Networks Corp. (Canada) /1/ 400,000 14,150 .56
SCI Systems, Inc. /1/ 646,263 13,329 .53
Rogers Corp. /1/ 95,400 5,175 .21
Park Electrochemical Corp. 125,000 4,344 .17
Cyrix Corp. /1/ 150,000 3,844 .15
Actel Corp. /1/ 300,000 3,450 .14
Advanced Micro Devices, Inc. /1/ 100,000 3,287 .13
ANTEC Corp. /1/ 150,000 3,112 .12
Xilinx, Inc. /1/ 30,000 2,527 .10
Motorola, Inc. 42,000 2,515 .10
BROADCASTING & PUBLISHING- 12.68%
Tele-Communications, Inc., Class A /1/ 2,849,950 59,849 2.37
News Corp. Ltd. (American Depositary Receipts) (Australia) 1,270,000 27,464
News Corp. Ltd., preferred shares (American Depositary
Receipts) 635,000 12,462 1.58
Capital Cities/ABC, Inc. 410,000 39,565 1.57
Turner Broadcasting System, Inc., Class B 1,865,100 37,069 1.47
Time Warner Inc. 933,000 36,970 1.46
Viacom Inc., Class B /1/ 500,000 23,312 .92
Cablevision Systems Corp., Class A /1/ 240,000 14,370 .57
Gaylord Entertainment Co., Class A 630,000 14,017 .56
CBS Inc. 160,445 10,750 .43
Comcast Corp., Class A, special stock 500,000 8,688 .34
LIN Television Corp. /1/ 209,150 7,477 .30
United International Holdings, Inc., Class A /1/ 485,000 7,275 .29
New York Times Co., Class A 300,000 6,788 .27
Jones Intercable, Inc., Class A /1/ 370,000 4,949 .20
Infinity Broadcasting Corp., Class A /1/ 168,750 4,746 .19
Adelphia Communications Corp., Class A /1/ 350,000 3,325 .13
BHC Communications, Inc., Class A /1/ 11,189 850 .03
BUSINESS & PUBLIC SERVICES- 12.20%
United HealthCare Corp. 890,000 33,152 1.31
Bay Networks, Inc. /1/ 825,000 30,009 1.19
CUC International Inc. /1/ 805,000 29,584 1.17
WMX Technologies, Inc. 1,035,000 28,204 1.12
Columbia Healthcare Corp. 665,000 27,182 1.08
FHP International Corp. /1/ 960,000 21,120 .84
Federal Express Corp. /1/ 350,000 20,956 .83
Oxford Health Plans, Inc. /1/ 344,400 17,306 .69
General Motors Corp., Class E 375,000 15,938 .63
ADT Ltd. /1/ 1,255,000 14,276 .57
Avery Dennison Corp. 310,000 12,788 .51
America Online, Inc. /1/ 330,000 11,674 .46
PacifiCare Health Systems, Inc., Class B /1/ 165,000 10,849 .43
Humana Inc. /1/ 300,000 6,337 .25
U.S. Healthcare, Inc. 200,000 6,200 .25
Pitney Bowes Inc. 150,000 5,550 .22
Ceridian Corp. /1/ 150,000 4,837 .19
Value Health, Inc. /1/ 150,000 4,837 .19
Dun & Bradstreet Corp. 50,000 2,650 .10
BHA Group, Inc., Class A 195,000 2,535 .10
Air & Water Technologies Corp., Class A /1/ 285,000 1,710 .07
DATA PROCESSING & REPRODUCTION- 11.79%
Silicon Graphics, Inc. /1/ 1,370,000 53,259 2.11
Adobe Systems Inc. 950,000 49,163 1.95
Oracle Systems Corp. /1/ 1,215,000 42,069 1.67
International Business Machines Corp. 190,000 17,717 .70
Dell Computer Corp. /1/ 350,000 17,587 .70
Mentor Graphics Corp. /1/ 1,000,000 16,750 .66
Sybase, Inc. /1/ 775,000 16,275 .65
Autodesk, Inc. 400,000 14,800 .59
Lotus Development Corp. /1/ 375,000 11,344 .45
Microsoft Corp. /1/ 130,000 11,001 .44
Electronic Arts /1/ 425,000 10,944 .43
Compaq Computer Corp. /1/ 275,000 10,759 .43
Structural Dynamics Research Corp. /1/ 475,000 6,531 .26
Tandem Computers Inc. /1/ 440,000 5,830 .23
Sequent Computer Systems, Inc. /1/ 350,000 5,163 .20
Digital Equipment Corp. /1/ 100,000 4,463 .18
Apple Computer, Inc. 65,000 2,697 .11
Data General Corp. /1/ 100,000 800 .03
Tripos, Inc. /1/ 19,333 126 .00
LEISURE & TOURISM- 5.77%
Walt Disney Co. 1,135,000 63,134 2.51
Promus Companies Inc. /1/ 440,000 18,425 .73
Mirage Resorts, Inc. /1/ 600,000 17,925 .71
Marriott International, Inc. 500,000 16,938 .67
Circus Circus Enterprises, Inc. /1/ 475,000 15,853 .63
Host Marriott Corp. /1/ 765,000 8,128 .32
Luby's Cafeterias, Inc. 250,000 5,094 .20
TELECOMMUNICATIONS- 3.57%
Vanguard Cellular Systems, Inc. /1/ 1,035,000 24,581 .98
MCI Communications Corp. 1,120,000 22,540 .89
AirTouch Communications /1/ 780,000 21,255 .84
Cellular Communications, Inc., convertible preferred /1/ 165,000 7,590 .30
United States Cellular Corp. /1/ 144,000 4,140 .16
Centennial Cellular Corp. /1/ 300,000 3,975 .16
Associated Communications Corp., Class A /1/ 93,750 1,523
Associated Communications Corp., Class B /1/ 93,750 1,477 .12
LIN Broadcasting Corp. /1/ 14,300 1,768 .07
Cellular Communications of Puerto Rico, Inc. /1/ 37,500 1,144 .05
BANKING- 3.43%
Mercantile Bancorporation Inc. 517,500 20,635 .82
Banc One Corp. 530,750 18,444 .73
BayBanks, Inc. 232,200 16,777 .67
Commerce Bancshares, Inc. 388,750 11,954 .47
Northern Trust Corp. 245,000 9,432 .37
Huntington Bancshares Inc. 475,000 9,322 .37
CHEMICALS- 2.74%
Valspar Corp. 534,800 19,721 .78
Great Lakes Chemical Corp. 275,000 16,775 .67
Loctite Corp. 250,000 12,469 .49
Raychem Corp. 305,000 11,094 .44
Engelhard Corp. 189,600 7,892 .31
McWhorter, Inc. /1/ 50,000 762 .03
Lubrizol Corp. 11,000 384 .02
HEALTH & PERSONAL CARE- 2.70%
Cordis Corp. /1/ 180,000 12,330 .49
Omnicare, Inc. 220,000 10,450 .41
Genetics Institute, Inc. /1/ 260,000 9,555 .38
Forest Laboratories, Inc. /1/ 180,000 7,943 .31
Tambrands Inc. 150,000 6,431 .26
Puritan-Bennett Corp. 111,600 4,087 .16
Bausch & Lomb Inc. 100,000 4,063 .16
Johnson & Johnson 48,800 3,233 .13
Biogen, Inc. /1/ 70,000 2,887 .11
Liposome Technology, Inc. /1/ 300,000 2,213
Liposome Technology, Inc., convertible reset preferred /1/ /2/ 24,000 600 .11
Liposome Technology, Inc., warrants, expire 1998 /1/ 40,416 0
Paragon Trade Brands, Inc. /1/ 135,100 1,841 .07
Alpha-Beta Technology, Inc. /1/ 200,000 1,250 .05
Upjohn Co. 25,000 909 .04
Perrigo Co. /1/ 35,000 376 .02
INSURANCE- 2.62%
Transatlantic Holdings, Inc. 270,000 17,145 .68
EXEL Ltd. (Bermuda) 365,000 17,064 .68
NAC Re Corp. 285,000 8,372 .33
TIG Holdings, Inc. 325,000 7,638 .30
Trenwick Group Inc. 148,400 6,455 .26
NYMAGIC, Inc. 368,300 6,031 .24
American Re Corp. 90,000 3,352 .13
MERCHANDISING- 2.32%
Barnes & Noble, Inc. /1/ 479,500 13,786 .55
Staples, Inc. /1/ 416,250 11,655 .46
Home Shopping Network, Inc. /1/ 1,200,000 8,400 .33
Spiegel, Inc., Class A 752,600 8,279 .33
Toys "R" Us, Inc. /1/ 310,000 7,827 .31
ShopKo Stores, Inc. 408,600 4,392 .18
Circuit City Stores, Inc. 150,000 4,125 .16
TRANSPORTATION: AIRLINES- 2.03%
Southwest Airlines Co. 1,491,900 33,008 1.31
AMR Corp. /1/ 195,000 13,309 .53
Delta Air Lines, Inc. 75,000 4,884 .19
ELECTRICAL & ELECTRONICS- 1.41%
Telefonaktiebolaget LM Ericsson, Class B (American Depositary
Receipts) (Sweden) 485,000 35,587 1.41
RECREATION & OTHER CONSUMER PRODUCTS- 1.30%
Mattel, Inc. 909,531 22,739 .90
Hasbro, Inc. 185,000 6,521 .26
Duracell International Inc. 80,000 3,460 .14
ENERGY EQUIPMENT- 0.76%
Schlumberger Ltd. (Netherlands Antilles) 295,000 19,175 .76
BEVERAGES & TOBACCO- 0.75%
Philip Morris Companies Inc. 160,000 11,660 .46
PepsiCo, Inc. 150,000 7,350 .29
ENERGY SOURCES- 0.63%
Murphy Oil Corp. 225,000 9,844 .39
Noble Affiliates, Inc. 226,500 6,144 .24
FINANCIAL SERVICES- 0.55%
Federal National Mortgage Assn. 150,000 13,950 .55
MULTI-INDUSTRY- 0.54%
Nokia Corp., Class A (American Depositary Receipts) (Finland) 260,000 12,090 .48
Textron Inc. 20,000 1,218 .05
Tenneco Inc. 7,900 379 .01
TEXTILES & APPAREL- 0.45%
Phillips-Van Heusen Corp. 750,000 11,438 .45
APPLIANCES & HOUSEHOLD DURABLES- 0.39%
Mohawk Industries, Inc. /1/ 650,000 9,831 .39
ELECTRONIC INSTRUMENTS- 0.32%
Applied Materials, Inc. /1/ 104,000 7,982 .32
TRANSPORTATION: RAIL & ROAD- 0.30%
Southern Pacific Rail Corp. /1/ 475,000 7,541 .30
MACHINERY & ENGINEERING- 0.19%
Caterpillar Inc. 80,000 4,820 .19
FOREST PRODUCTS & PAPER- 0.16%
ITT Rayonier Inc. 105,000 3,609 .14
Jefferson Smurfit Corp. /1/ 30,000 398 .02
CONSTRUCTION & HOUSING- 0.11%
Stone & Webster, Inc. 90,000 2,767 .11
FOOD & HOUSEHOLD PRODUCTS- 0.10%
Ralston Purina Co. 50,000 2,512 .10
AEROSPACE & MILITARY TECHNOLOGY- 0.03%
Litton Industries, Inc. /1/ 20,000 770 .03
MISCELLANEOUS
Other stocks in initial period of acquisition 66,240 2.63
------ ------
TOTAL STOCKS (cost: $1,622,492,000) 2,213,170 87.74
------ ------
PRINCIPAL
AMOUNT
SHORT-TERM SECURITIES (000)
---------------------- ------ ------ ------
CORPORATE SHORT-TERM NOTES- 12.12%
Ford Motor Credit Co. 5.94%-5.95% due 6/23-7/13/95 45,900 45,651 1.81
National Rural Utilities Cooperative Finance Corp. 5.94%-5.95%
due 6/9-6/22/95 41,035 40,917 1.62
PepsiCo, Inc. 5.93%-5.95% due 6/13-6/20/95 34,980 34,879 1.38
American Express Credit Corp. 5.93%-5.99% due 6/19-6/27/95 33,000 32,885 1.30
Pfizer Inc. 5.92% due 6/29/95 29,900 29,757 1.18
E.I. du Pont de Nemours and Co. 5.91%-5.93% due 6/28-6/30/95 25,300 25,181 1.00
U S WEST Communications, Inc. 5.95%-6.03% due 6/2-6/22/95 24,200 24,154 .96
Raytheon Co. 5.94%-5.96% due 6/14-6/19/95 20,600 20,544 .81
American General Corp. 5.95% due 6/5-7/10/95 15,300 15,273 .61
Sara Lee Corp. 5.91% due 6/13/95 9,800 9,779 .39
Associates Corp. of North America 6.12% due 6/1/95 9,650 9,648 .38
Beneficial Corp. 5.98% due 7/5/95 9,000 8,948 .36
Coca-Cola Co. 5.95% due 7/6/95 8,100 8,052 .32
FEDERAL AGENCY DISCOUNT NOTES- 0.87%
Federal Home Loan Mortgage Corp. 5.90% due 7/5/95 22,000 21,874 .87
------ ------
TOTAL SHORT-TERM SECURITIES (cost: $327,543,000) 327,542 12.99
------ ------
TOTAL INVESTMENT SECURITIES (cost: $1,950,035,000) 2,540,712 100.73
Excess of payables over money market account, cash and
receivables 18,355 .73
------ ------
NET ASSETS $2,522,357 100.00
========== ======
</TABLE>
/1/ Non-income-producing securities.
/2/ Purchased in a private placement
transaction; resale potential extends
to qualified institutional buyers.
See Notes to Financial Statements
<TABLE>
<CAPTION>
<S> <C>
STOCKS APPEARING IN THE PORTFOLIO STOCKS ELIMINATED FROM THE PORTFOLIO
SINCE NOVEMBER 30, 1994 SINCE NOVEMBER 30, 1994
--------------------------------- ------------------------------------
Actel Acuson
America Online Amdahl
ANTEC Archer Daniels Midland
Autodesk Astra
Bausch & Lomb BankAmerica
Circuit City Stores Bay View Capital
Cyrix Chicago and North Western Holdings
Dell Computer Chipcom
Digital Equipment Cooper Tire & Rubber
Engelhard EMC
Great Lakes Chemical Genentech
Home Shopping Network Golden West Financial
Jefferson Smurfit Goody's Family Clothing
LIN Television International Game Technology
Noble Affiliates Legent
Nokia Parker & Parsley Petroleum
PacifiCare Health Systems Phar-Mor
PepsiCo Quantum
Perrigo Safety-Kleen
Ralston Purina TJX Companies
Seagate Technology Western Atlas
Southern Pacific Rail
Sybase
Viacom
</TABLE>
<PAGE>
-----------------
AMERICAN VARIABLE INSURANCE SERIES INTERNATIONAL FUND
Investment Portfolio, May 31, 1995
(Unaudited)
Where the Fund's Assets Are Invested
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EUROPE 47.06%
United Kingdom 11.23%
France 6.17
Germany 4.96
Sweden 4.93
Netherlands 4.57
Switzerland 3.86
Finland 2.48
Spain 2.34
Denmark 1.41
Norway 1.32
Italy 1.12
Belgium 1.05
Ireland .88
Austria .42
Luzembourg .32
ASIA/PACIFIC 21.91%
Australia 6.46
Hong Kong 4.83
Japan 3.87
New Zealand 3.47
Singapore .89
Korea .80
Thailand .56
Indonesia .52
Philippines .42
Pakistan .09
THE AMERICAS 6.78%
Canada 2.83
Mexico 1.51
Brazil 1.36
Argentina 1.08
OTHER .30%
Israel .30
CASH AND EQUIVALENTS 23.95%
Market Percent
Number of Value of Net
STOCKS (COMMON AND PREFERRED) Shares (000) Assets
----------------------------------------------------------------- ---------- -------- -------
TELECOMMUNICATIONS - 7.18%
Tele Danmark AS, Class B (American Depositary Receipts) (Denmark) 750,000 21,375 1.41
Telecom Corp. of New Zealand Ltd. (New Zealand)/1/ 4,956,800 19,757
Telecom Corp. of New Zealand Ltd.(American Depositary Receipts) 11,700 752 1.36
Telefonos de Mexico, SA de CV, Class L (American Depositary
Receipts)(Mexico) 487,000 13,697 .91
Telecom Italia SpA (Italy) 3,861,000 10,120
Telecom Italia SpA, savings shares 276,000 563 .71
Telecomunicacoes Brasileiras SA, preferred nominative (Brazil) 256,722,053 8,954
Telecomunicacoes Brasileiras SA, rights, expire 6/23/95/2/ 8,944,489 - .59
Telefonica de Espana, SA (American Depositary Receipts) (Spain) 158,000 6,320 .42
Philippine Long Distance Telephone Co. (Global Depositary
Receipts) (Philippines) 80,000 5,240 .35
STET - Societa Finanziaria Telefonica p.a. (Italy) 950,000 2,732
STET - Societa Finanziaria Telefonica p.a.,
!nonconvertible savings shares 950,000 2,172 .32
Rogers Cantel Mobile Communications Inc., Class B (Canada)/2/ 195,000 4,680 .31
Cable and Wireless PLC (United Kingdom) 587,700 3,934 .26
Vodafone Group PLC (American Depositary Receipts) (United 66,000 2,219
Kingdom)
Vodafone Group PLC 392,976 1,292 .23
Nippon Telegraph and Telephone Corp. (Japan) 400 3,315 .22
Pakistan Telecommunication Corp. (Global Depositary Receipts)
(Pakistan)/1/ /2/ 12,800 1,408 .09
MULTI-INDUSTRY - 6.88%
Nokia Corp., Class K (Finland) 280,000 12,816
Nokia Corp., Class A 180,000 8,364 1.40
Orkla AS, Class A (Norway) 475,000 19,998 1.32
Brierley Investments Ltd. (New Zealand) 20,901,871 15,412
Brierley Investments Ltd., 9.00% convertible preferred 1,445,000 979 1.08
Groupe Bruxelles Lambert SA (Belgium) 83,000 11,352 .75
Industriforvaltnings AB Kinnevik, Class B (Sweden) 165,000 4,977
Industriforvaltnings AB Kinnevik, Class A 101,600 3,078 .53
Hutchison Whampoa Ltd. (Hong Kong) 1,200,000 6,066 .40
Lend Lease Corp. Ltd. (Australia) 430,949 5,637 .37
Pearson PLC (United Kingdom) 540,000 5,197 .34
Chargeurs (France) 17,000 3,533
Chargeurs, rights, expire 7/3/95/2/ 17,000 348 .26
Swire Pacific Ltd., Class A (Hong Kong) 495,000 3,824 .25
Preussag AG (Germany) 9,200 2,738 .18
BANKING - 6.64%
Australia and New Zealand Banking Group Ltd. (Australia) 5,824,729 20,931 1.38
ABN AMRO Holding NV (Netherlands) 491,334 18,607 1.23
Westpac Banking Corp. (Australia) 3,815,761 14,014 .93
P.T. Bank Internasional Indonesia (Indonesia) 1,863,000 5,189 .34
Canadian Imperial Bank of Commerce (Canada) 200,000 4,873 .32
Bank of Montreal (Canada) 220,000 4,598 .30
Banco Popular Espanol, SA (Spain) 30,000 4,503 .30
CS Holding Group (Switzerland) 8,000 3,746
CS Holding Group, registered shares 8,000 753 .30
Kansallis-Osake-Pankki (Finland)/2/ 4,100,000 4,341 .29
Banco Bilbao Vizcaya, SA (American Depositary Receipts) (Spain) 130,000 3,754 .25
Safra Republic Holdings SA (Luxembourg) 42,000 3,528 .23
Credit local de France (France) 39,800 3,501 .23
Bank of Ayudhya, Ltd. (Thailand) 454,000 2,429 .16
Bangkok Bank Ltd. (Thailand) 212,500 2,326 .15
Grupo Financiero Banamex Accival, SA de CV, Class B (Mexico) 1,130,397 1,685 .11
Philippine National Bank (Philippines) 98,049 1,164 .08
Deutsche Bank AG (Germany) 1,300 637 .04
Bayerische Vereinsbank AG (Germany) 250 73 .00
BROADCASTING & PUBLISHING - 5.44%
News Corp. Ltd. (American Depositary Receipts) (Australia) 362,000 7,828
News Corp. Ltd., preferred shares (American Depositary Receipts) 181,000 3,552 .75
Television Broadcasts Ltd. (Hong Kong) 2,562,000 9,771 .65
NV Verenigd Bezit VNU (Netherlands) 77,000 9,162 .61
Rogers Communications Inc., Class B (Canada)/2/ 725,000 8,271 .55
CANAL+ (France) 36,778 4,921 .33
Independent Newspapers, PLC (Ireland) 994,450 4,656 .31
Elsevier NV (Netherlands) 340,000 3,940 .26
Sing Tao Holdings Ltd. (Hong Kong - Incorporated in Bermuda) 5,937,230 3,876 .26
TeleWest Communications PLC (American Depositary Receipts)
(United Kingdom)/2/ 141,000 3,613 .24
Holdingmaatschappij De Telegraaf NV (Netherlands) 23,500 2,872 .19
News International PLC, special dividend shares (United Kingdom) 580,000 2,791 .18
Daily Mail and General Trust PLC, Class A (United Kingdom) 145,000 2,717 .18
John Fairfax Holdings Ltd. (Australia) 1,280,000 2,502 .17
Grupo Televisa, SA (American Depositary Receipts) (Mexico) 149,000 2,421 .16
Europe 1 Communication (Monaco) 8,571 2,231 .15
Wolters Kluwer NV (Netherlands) 26,118 2,192 .14
Tokyo Broadcasting System, Inc. (Japan) 113,000 1,806 .12
British Sky Broadcasting Group PLC (American Depositary Receipts)
(United Kingdom)/2/ 58,600 1,494 .10
AUDIOFINA (Luxembourg) 2,455 1,251
AUDIOFINA, 5.00% convertible preferred 223 107 .09
AUTOMOBILES - 5.41%
Bayerische Motoren Werke AG (Germany) 35,000 18,882
Bayerische Motoren Werke AG, preferred shares 10,472 4,088 1.52
Daimler-Benz AG (Germany) 35,643 17,285 1.14
Peugeot SA (France) 110,000 16,626 1.10
Toyota Motor Corp. (Japan) 398,000 7,728 .51
Volvo AB, Class B (Sweden) 390,000 6,866 .45
Suzuki Motor Corp. (Japan) 612,000 6,123 .40
Renault V.I. SA (France) 129,500 4,226 .28
Volkswagen AG, preferred shares (Germany) 500 108 .01
UTILITIES: ELECTRIC & GAS - 3.91%
Hongkong Electric Holdings Ltd. (Hong Kong) 5,025,000 17,866 1.18
Korea Electric Power Corp. (Korea) 188,000 7,292
Korea Electric Power Corp. (American Depositary Receipts) 215,000 4,811 .80
China Light & Power Co., Ltd. (Hong Kong) 1,589,800 8,694 .57
Centrais Eletricas Brasileiras SA, Class B,
!preferred nominative (Brazil) 31,000,000 8,588 .57
Iberdrola, SA (Spain) 915,000 6,422 .42
Scottish Power PLC (United Kingdom) 600,000 3,182 .21
Companhia Energetica de Sao Paulo, preferred nominative,
(American Depositary Receipts) (Brazil)/1/ /2/ 204,096 2,347 .16
MACHINERY & ENGINEERING - 2.83%
Mannesmann AG (Germany) 45,187 13,247 .88
VA Technologie AG (Austria)/1/ 55,100 6,335 .42
Bombardier Inc., Class B (Canada) 275,000 6,099 .40
Atlas Copco AB, Class A (Sweden) 410,000 5,987 .40
Sembawang Shipyard Ltd. (Singapore) 645,000 4,450 .29
Sandvik AB, Class B (Sweden) 175,000 3,069 .20
GEA AG, preferred shares (Germany) 5,000 1,658
GEA AG 3,750 1,408 .20
Siu Fung Ceramics Holdings Ltd. (Hong Kong -
Incorporated in Bermuda) 4,058,000 588 .04
CHEMICALS - 2.76%
L'Air Liquide (France) 73,977 11,629 .77
DSM NV (Netherlands) 98,902 8,424 .56
Akzo NV (Netherlands) 62,000 7,558 .50
Ciba-Geigy Ltd. (Switzerland) 10,400 7,398 .49
Sumitomo Chemical Co., Ltd. (Japan) 826,000 4,235 .28
Bayer AG (Germany) 5,200 1,257 .08
BASF AG (Germany) 4,300 922 .06
Hoechst AG (Germany) 1,500 324 .02
LEISURE & TOURISM - 2.61%
Forte PLC (United Kingdom) 5,768,836 21,162 1.40
PolyGram NV (New York Registered Shares) (Netherlands) 175,000 10,216 .68
Mandarin Oriental International Ltd. (Singapore)/2/ 4,699,277 5,639 .37
Rank Organisation PLC (United Kingdom) 350,000 2,437 .16
BUSINESS & PUBLIC SERVICES - 2.56%
Autopistas, Concesionaria Espanola, SA (Spain) 1,035,000 9,736 .64
Reuters Holdings PLC (United Kingdom) 932,000 6,971 .46
Havas SA (France) 67,757 5,527 .37
Thames Water PLC (United Kingdom) 503,340 4,076 .27
Welsh Water PLC (United Kingdom) 300,000 3,078 .20
Cordiant PLC (formerly Saatchi & Saatchi Co. PLC)
(United Kingdom)/2/ 1,808,995 3,016 .20
Securicor Group PLC, Class A (United Kingdom) 165,000 2,603 .17
Cross-Harbour Tunnel Co., Ltd. (Hong Kong) 1,090,000 2,142 .14
Eurotunnel SA, units (France)/2/ 592,000 1,684 .11
ELECTRICAL & ELECTRONICS - 2.53%
ASEA AB, Class A (Sweden) 130,000 11,054
ASEA AB, Class B 69,300 5,864 1.12
BBC Brown Boveri Ltd., Class A (Switzerland) 9,292 9,508 .63
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 121,500 8,706
Telefonaktiebolaget LM Ericsson, Class B,
4.25% convertible preferred 14,500 35 .58
Hitachi, Ltd. (Japan) 115,000 1,112 .07
Johnson Electric Holdings Ltd. (Hong Kong -
Incorporated in Bermuda) 495,000 1,104 .07
Siemens AG (Germany) 2,050 976 .06
FOOD & HOUSEHOLD PRODUCTS - 2.38%
Reckitt & Colman PLC (United Kingdom) 1,776,250 18,602 1.23
Nestle SA (Switzerland) 11,936 12,080 .80
PT Indofood Sukses Makmur (Indonesia) 608,500 2,658 .18
Hazlewood Foods PLC (United Kingdom) 1,500,000 2,525 .17
INSURANCE - 2.17%
Irish Life PLC (Ireland) 2,598,084 8,602 .57
Munchener Ruckversicherungs-Gesellschaft (Germany) 3,673 7,312
Munchener Ruckversicherungs-Gesellschaft, warrants,
expire 1998/2/ 483 54 .49
GIO Australia Holdings Ltd. (Australia) 2,788,794 5,532 .37
Corporacion Mapfre, CIR, SA (Spain) 95,582 4,527
Corporacion Mapfre, CIR, SA 3,070 142 .31
Internationale Nederlanden Groep NV, warrants,
expire 2001/2/ (Netherlands) 1,500,000 3,344 .22
Refuge Group PLC (United Kingdom) 589,700 3,217 .21
MISCELLANEOUS MATERIALS & COMMODITIES - 1.85%
English China Clays PLC (United Kingdom) 1,668,750 10,149 .67
Compagnie de Saint-Gobain (France) 79,954 10,019 .66
Pilkington PLC (United Kingdom) 2,700,000 7,911 .52
HEALTH & PERSONAL CARE - 1.76%
AB Astra, Class A (Sweden) 470,000 13,791 .91
Glaxo Holdings PLC (American Depositary Receipts)
(United Kingdom) 500,000 11,625 .77
Banyu Pharmaceutical Co., Ltd. (Japan) 106,000 1,202 .08
BUILDING MATERIALS & COMPONENTS - 1.76%
Holderbank Financiere Glaris Ltd. (Switzerland) 21,307 16,987 1.12
Poliet (France) 40,782 3,876 .26
CEMEX, SA, Class A (Mexico) 1,086,250 3,341 .22
Sika Finanz AG, participation certificates (Switzerland) 6,500 2,066 .14
Tolmex, SA de CV, Class B2 (Mexico) 85,000 318 .02
MERCHANDISING - 1.68%
Tesco PLC (United Kingdom) 2,000,000 9,369 .62
WHSmith Group PLC, Class A (United Kingdom) 700,000 3,907 .26
Amway Japan Ltd. (American Depositary Receipts) (Japan) 200,000 3,350 .22
Kwik-Fit Holdings PLC (United Kingdom) 1,200,000 2,992 .20
Ito-Yokado Co., Ltd. (Japan) 50,000 2,652 .18
Chain Store Okuwa Co., Ltd. (Japan) 100,000 1,918 .13
Cifra, SA de CV, Class C (Mexico) 832,000 1,029 .07
INDUSTRIAL COMPONENTS - 1.60%
Compagnie Generale des Etablissements Michelin, Class B
(France) 423,000 19,317
Compagnie Generale des Etablissements Michelin, 2.50%
!convertible preferred 23,200 1,210 1.36
Magna International Inc., Class A (Canada) 43,000 1,634 .11
Pirelli SpA (Italy)/2/ 900,000 1,288 .09
Orbital Engine Corp. Ltd. (Australia)/2/ 611,040 571 .04
METALS: NONFERROUS - 1.55%
Alusuisse-Lonza Holding Ltd, Zurich (Switzerland) 10,000 5,911 .39
Western Mining Corp. Holdings Ltd. (Australia) 900,000 4,793 .32
Inco Ltd. (Canada) 180,000 4,500 .30
Falconbridge Ltd. (Canada)/1/ 250,000 4,038 .27
Teck Corp., Class B (Canada) 200,000 4,034 .27
TRANSPORTATION: AIRLINES - 1.46%
Cathay Pacific Airways Ltd. (Hong Kong) 7,362,000 10,708 .71
British Airways PLC (American Depositary Receipts)
(United Kingdom) 63,750 4,192
British Airways PLC 560,000 3,655 .52
Singapore Airlines Ltd. (Singapore) 358,000 3,422 .23
ENERGY SOURCES - 1.38%
YPF SA, Class D (American Depositary Receipts) (Argentina) 634,000 12,838 .85
Petrofina SA (Belgium) 15,175 4,565 .30
TOTAL, Class B (France) 55,022 3,415 .23
RECREATION & OTHER CONSUMER PRODUCTS - 1.14%
THORN EMI PLC (United Kingdom) 460,000 9,058 .60
Nintendo Co., Ltd. (Japan) 135,100 8,142 .54
FOREST PRODUCTS & PAPER - 1.11%
Repola Ltd. (Finland) 385,000 7,796 .52
Fletcher Challenge Ltd. (New Zealand) 2,200,000 5,846
Fletcher Challenge Ltd. (American Depositary Receipts) 51,670 698 .43
Carter Holt Harvey Ltd. (New Zealand) 981,674 2,472 .16
TRANSPORTATION: RAIL & ROAD - 1.08%
TNT Ltd., 8.00% convertible preferred (Australia)/1/ 5,790,400 8,656
TNT Ltd./2/ 5,336,044 7,747 1.08
APPLIANCES & HOUSEHOLD DURABLES - 0.92%
AB Electrolux, Class B (Sweden) 137,900 6,380 .42
Sony Corp. (Japan) 101,000 4,879 .32
Philips Electronics NV (Netherlands) 70,000 2,793 .18
METALS: STEEL - 0.86%
British Steel PLC (United Kingdom) 2,223,000 6,222 .41
Thyssen AG (Germany)/2/ 21,000 3,969 .26
Svenskt Stal AB, Class A (Sweden) 60,000 2,457 .16
Tubos de Acero de Mexico, SA (American Depositary Receipts)
(Mexico)/2/ 85,000 414 .03
BEVERAGES & TOBACCO - 0.83%
Coca-Cola Amatil Ltd. (Australia) 2,107,486 12,556 .83
WHOLESALE & INTERNATIONAL TRADE - 0.49%
Mitsubishi Corp. (Japan) 325,000 3,725 .25
ITOCHU Corp. (Japan) 600,000 3,687 .24
REAL ESTATE - 0.48%
Sun Hung Kai Properities Ltd. (Hong Kong) 1,000,000 7,240 .48
AEROSPACE & MILITARY TECHNOLOGY - 0.44%
Rolls-Royce PLC (United Kingdom) 2,222,222 6,634 .44
TRANSPORTATION: SHIPPING - 0.31%
Nippon Yusen Kabushiki Kaisha (Japan) 790,000 4,714 .31
ELECTRONIC INSTRUMENTS - 0.30%
Scitex Corp. Ltd. (Israel) 210,000 4,489 .30
FINANCIAL SERVICES - 0.07%
Pioneer Industries International (Holdings) Ltd. (Hong Kong) -
Incorporated in Bermuda) 1,616,000 1,118 .07
MISCELLANEOUS
Other stocks in initial period of acquisition 8,649 .57
-------- -------
TOTAL STOCKS (cost: $998,524,000) 1,133,372 74.94
-------- -------
Principal
Amount
CONVERTIBLE DEBENTURES (000)
----------------------------------------------------------------- ---------- -------- --------
FOREST PRODUCTS & PAPER - 0.28%
Kymmene Corporation 8.25% convertible bonds 2043 $17,000 4,264 .28
FINANCIALS - 0.25%
Bangkok Bank Ltd. 3.25% convertible bonds 2004/1/ $3,675 3,748 .25
-------- -------
TOTAL CONVERTIBLE DEBENTURES (cost: $7,812,000) 8,012 .53
-------- -------
TOTAL EQUITY-TYPE SECURITIES (cost: $1,006,336,000) 1,141,38 75.47
4
-------- -------
BONDS & NOTES
----------------------------------------------------------------- ---------- -------- -------
-
GOVERNMENTS (EXCLUDING U.S. GOVERNMENT) - 0.58%
New Zealand Government 9.00% 1996 NZ 8,000 5,361 .35
Republic of Argentina 5.00%, Eurobonds, Series L, 2023/3/ $ 7,000 3,500 .23
-------- -------
TOTAL BONDS & NOTES (cost: $8,411,000) 8,861 .58
-------- -------
Principal Market Percent
Amount Value of Net
SHORT-TERM SECURITIES (000) (000) Assets
----------------------------------------------------------------- ------------- -------- -------
CORPORATE SHORT-TERM NOTES - 19.02%
SmithKline Beecham Corp. 5.92%-5.95% due 6/12-7/14/95 42,700 42,491 2.81
Commonwealth Bank of Australia 5.90% due 6/26/95 37,000 36,839 2.44
British Gas Capital Inc. 5.90%-5.96% due 6/5-6/23/95 31,800 31,704 2.10
ABN-AMRO North America Finance Inc. 5.92%-5.97% due 6/1-7/12/95 31,200 31,013 2.05
Unilever Capital Corp. 5.96%-6.02% due 6/6-6/26/95 28,850 28,767 1.90
Sony Capital Corp. 5.94%-5.95% due 6/8-7/19/95 26,800 26,683 1.76
Canadian Imperial Holdings Inc. 5.98% due 6/5/95 23,200 23,181 1.53
Toyota Motor Credit Corp. 5.92%-5.93% due 6/7-6/29/95 22,400 22,317 1.48
Ford Motor Credit Co. 6.00% due 6/1/95 20,000 19,997 1.32
Exxon Imperial U.S. Inc. 5.93%-5.97% due 6/9-6/22/95 15,600 15,564 1.03
Ford Credit Europe PLC 5.96% due 7/27/95 9,100 9,014 .60
CERTIFICATES OF DEPOSIT - 1.45%
Societe Generale 6.05%-6.08% due 6/15-7/5/95 22,000 22,000 1.45
FEDERAL AGENCY DISCOUNT NOTES - 0.81%
Federal National Mortgage Assn. 5.90%-5.95% due 6/12-6/16/95 12,300 12,269 .81
-------- -------
TOTAL SHORT-TERM SECURITIES (cost: $321,844,000) 321,839 21.28
-------- ------
TOTAL INVESTMENT SECURITIES (cost: $1,336,591,000) 1,472,084 97.33
Excess of money market account, cash and receivables over 40,307 2.67
payables
-------- ------
NET ASSETS $1,512,391 100.00
======== =======
=
</TABLE>
/1/ Purchased in a private placement transaction; resale to the public may
require registration.
/2/ Non-income-producing securities.
/3/ Coupon rate may change periodically.
See Notes to Financial Statements
EQUITY-TYPE SECURITIES APPEARING IN THE
PORTFOLIO SINCE NOVEMBER 30, 1994
----------------------------------------
Alusuisse-Lonza
Banco Popular Espanol
Banyu Pharmaceutical
Bombardier
British Sky Broadcasting Group
Chain Store Okuwa
Grupo Financiero Banamex Accival
Inco
Internationale Nederlanden Groep
Kymmene
Nintendo
Nippon Yusen Kabushiki Kaisha
PT Indofood Sukses Makmur
Rank Organisation
Telewest Communications
Volvo
Western Mining
YPF
EQUITY-TYPE SECURITIES ELIMINATED FROM THE
PORTFOLIO SINCE NOVEMBER 30, 1994
-------------------------------------------
Alcatel Alsthom
Aoyama Trading
Banco Bradesco
BAT Industries
BCE
CAMAS
De La Rue
Grupo Embotellador de Mexico
Heineken
Hong Kong and China Gas
Investor
Lex Service
National Australia Bank
Nissan Motor
Oce-van der Grinten
Petron
Samsung Eletronics
Sandoz
Societe Nationale Elf Aquitaine
United Friendly Group
Wacoal
Willis Corroon Group
<PAGE>
------------------------------------------------------------------
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1995 (Unaudited)
EQUITY TYPE SECURITIES 86.59%
CASH 13.41%
<TABLE>
<CAPTION>
Percent
of Net
LARGEST INDIVIDUAL EQUITY HOLDINGS Assets
<S> <C> <C> <C>
AT&T 1.63%
International Business Machines 1.49
WMX Technologies 1.43
Philip Morris 1.35
Boeing 1.32
Aluminum Co. of America 1.27
Monsanto 1.07
Tele-Communications 1.00
Union Camp 0.99
Walt Disney 0.99
Number Market Percent
of Value of Net
Stocks (common and preferred) Shares (000) Assets
BANKING - 7.89%
Banc One Corp. 666,250 $23,152 .70
First Fidelity Bancorporation 340,000 18,063 .55
First Interstate Bancorp 210,000 17,640 .54
PNC Bank Corp. 636,000 17,172 .52
BankAmerica Corp. 310,000 16,198 .49
COMERICA INC 500,000 15,812 .48
Huntington Bancshares Inc. 800,000 15,700 .48
Wells Fargo & Co. 80,000 14,720 .45
Wachovia Corp. 350,000 13,256 .40
Bankers Trust New York Corp. 210,000 13,177 .40
SunTrust Banks, Inc. 225,000 13,050 .40
CHASE MANHATTAN BANK, NA 250,000 11,563 .35
First Union Corp. 225,000 11,025 .33
FLEET FINANCIAL GROUP, INC. 300,000 10,463 .32
First Tennessee National Corp. 200,000 8,700 .26
NORWEST CORP. 300,000 8,512 .26
Bank of New York Co., Inc. 200,000 8,150 .25
NORTHERN TRUST CORP. 200,000 7,700 .23
J.P. Morgan & Co. Inc. 100,000 7,087 .22
Citicorp 100,000 5,350 .16
Signet Banking Corp. 150,000 3,394 .10
HEALTH & PERSONAL CARE - 6.82%
Schering-Plough Corp. 400,000 31,500 .96
Merck & Co., Inc. 650,000 30,631 .93
American Home Products Corp. 330,000 24,296 .74
Warner-Lambert Co. 260,000 21,547 .65
Pfizer Inc 235,000 20,709 .63
Eli Lilly and Co. 265,000 19,776 .60
Bristol-Myers Squibb Co. 295,000 19,581 .59
Abbott Laboratories 460,000 18,400 .56
Baxter International Inc. 300,000 10,463 .32
Johnson & Johnson 150,000 9,938 .30
Upjohn Co. 265,000 9,639 .29
McKesson Corp. 125,000 5,578 .17
BAUSCH & LOMB INC. 67,400 2,738 .08
TELECOMMUNICATIONS- 5.79%
AT&T Corp. 1,060,000 53,795 1.63
Sprint Corp. 825,000 27,637 .84
U S WEST Communications, Inc. 513,200 21,170 .64
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts)(Mexico) 750,800 21,116 .64
MCI Communications Corp. 859,800 17,303 .53
Ameritech Corp. 250,000 11,094 .34
AirTouch Communications /1/ 332,323 9,056 .27
Bell Atlantic Corp. 160,000 8,920 .27
Pacific Telesis Group 300,000 8,025 .24
GTE Corp. 135,000 4,506 .14
Southwestern Bell Corp. 100,000 4,500 .14
ALLTEL CORP. 150,000 3,694 .11
ENERGY SOURCES - 5.55%
Phillips Petroleum Co. 790,000 28,638 .87
AMOCO CORP. 355,000 24,273 .74
Royal Dutch Petroleum Co. (New York Registered
Shares) (Netherlands) 180,000 22,815 .69
Exxon Corp. 305,000 21,769 .66
Atlantic Richfield Co. 150,000 17,419 .53
UNOCAL CORP. 570,000 16,886 .51
Texaco Inc. 235,000 16,098 .49
Valero Energy Corp. 746,000 15,853 .48
Mobil Corp. 100,000 10,038 .31
TOSCO CORP. 170,000 6,035 .18
TOTAL, CLASS B (AMERICAN DEPOSITARY RECEIPTS)
(FRANCE) 100,000 3,100 .09
British Petroleum Co. PLC (American Depositary
Receipts) (United Kingdom) 2 - 0
BROADCASTING & PUBLISHING - 5.54%
Tele-Communications, Inc., Class A /1/ 1,575,000 33,075 1.00
News Corp. Ltd. (American Depositary Receipts)
(Australia) 800,000 17,300
News Corp. Ltd., preferred shares
(American Depositary Receipts) 400,000 7,850 .76
Time Warner Inc. 592,000 23,458 .71
Capital Cities/ABC, Inc. 220,000 21,230 .64
E.W. SCRIPPS CO., CLASS A 630,000 19,530 .59
Gannett Co., Inc. 287,000 15,355 .47
CBS Inc. 220,075 14,745 .45
Times Mirror Co., Series A 224,220 5,213
TIMES MIRROR CO., PREFERRED EQUITY REDEMPTION
CUMULATIVE STOCK, SERIES B 155,641 3,619 .27
Tribune Co. 140,000 8,348 .25
New York Times Co., Class A 344,300 7,790 .24
COX COMMUNICATIONS, INC. CLASS A /1/ 319,949 5,199 .16
BUSINESS & PUBLIC SERVICES - 4.46%
WMX Technologies, Inc. 1,730,000 47,142 1.43
Dun & Bradstreet Corp. 580,000 30,740 .93
General Motors Corp., Class E 549,500 23,354 .71
Browning-Ferris Industries, Inc. 500,000 17,813 .54
Federal Express Corp. /1/ 190,000 11,376 .35
Omnicom Group Inc. 170,000 9,796 .30
Pitney Bowes Inc. 175,000 6,475 .20
CHEMICALS - 3.88%
Monsanto Co. 424,600 35,348 1.07
Praxair, Inc. 850,000 21,144 .64
Eastman Chemical Co. 325,000 19,500 .59
Dow Chemical Co. 200,000 14,675 .45
Imperial Chemical Industries PLC (American
Depositary Receipts) (United Kingdom) 200,000 10,150 .31
ENGELHARD CORP. 189,600 7,892 .24
E.I. du Pont de Nemours and Co. 100,000 6,788 .21
Betz Laboratories, Inc. 150,000 6,375 .19
PPG Industries, Inc. 140,000 5,828 .18
MERCHANDISING - 3.42%
Limited Inc. 1,250,000 27,812 .84
WAL-MART STORES, INC. 1,004,000 25,100 .76
GIANT FOOD INC., CLASS A 450,000 12,937 .39
May Department Stores Co. 300,000 11,775 .36
Walgreen Co. 240,000 11,550 .35
Melville Corp. 287,400 11,424 .35
SEARS, ROEBUCK AND CO. 150,000 8,456 .26
J.C. PENNEY CO., INC. 80,000 3,770 .11
BEVERAGES & TOBACCO - 3.23%
Philip Morris Companies Inc. 610,000 44,454 1.35
Seagram Co. Ltd. (Canada) 1,008,000 30,240 .92
PepsiCo, Inc. 435,000 21,315 .65
American Brands, Inc. 250,000 10,094 .31
DATA PROCESSING & REPRODUCTION - 3.08%
International Business Machines Corp. 525,000 48,956 1.49
Xerox Corp. 250,000 28,344 .86
Apple Computer, Inc. 250,000 10,375 .32
ORACLE SYSTEMS CORP. /1/ 150,000 5,194 .16
Microsoft Corp. /1/ 50,000 4,231 .13
Novell, Inc. /1/ 212,000 4,081 .12
INSURANCE - 3.01%
SAFECO Corp. 465,000 27,319 .83
Allstate Corp. 800,000 24,100 .73
CIGNA CORP. 120,000 8,970 .27
CHUBB CORP. 100,000 8,238 .25
Arthur J. Gallagher & Co. 195,600 6,822 .21
St. Paul Companies, Inc. 120,000 6,105 .19
American General Corp. 170,000 5,865 .17
General Re Corp. 40,000 5,415 .16
TIG Holdings, Inc. 150,000 3,525 .11
American International Group, Inc. 27,500 3,128 .09
MULTI-INDUSTRY - 2.91%
Harsco Corp. 515,000 26,201 .80
Tenneco Inc. 505,000 24,240 .74
Textron Inc. 240,000 14,610 .44
Minnesota Mining and Manufacturing Co. 240,000 14,370 .44
ALLIEDSIGNAL INC. 200,000 8,075 .25
Hanson PLC (American Depositary Receipts)
(United Kingdom) 420,000 7,980 .24
AEROSPACE & MILITARY TECHNOLOGY - 2.83%
Boeing Co. 740,000 43,568 1.32
Litton Industries, Inc. /1/ 461,200 17,756 .54
United Technologies Corp. 200,000 15,175 .46
GENERAL MOTORS CORP., CLASS H 341,900 13,932 .42
Coltec Industries Inc /1/ 160,000 2,840 .09
MACHINERY & ENGINEERING - 2.51%
Sundstrand Corp. 375,000 20,813 .63
CATERPILLAR INC. 300,000 18,075 .55
Deere & Co. 172,200 14,895 .45
Parker Hannifin Corp. 200,000 11,425 .35
Ingersoll-Rand Co. 300,000 11,175 .34
CROMPTON & KNOWLES CORP. 350,000 6,344 .19
UTILITIES: ELECTRIC & GAS - 2.19%
Entergy Corp. 900,000 22,275 .68
Pacific Gas and Electric Co. 705,000 20,445 .62
Consolidated Edison Co. of New York, Inc. 350,000 10,456 .32
Central and South West Corp. 300,000 7,725 .23
Detroit Edison Co. 200,000 6,025 .18
General Public Utilities Corp. 120,000 3,600 .11
Long Island Lighting Co. 95,000 1,484 .05
FOREST PRODUCTS & PAPER - 2.15%
Union Camp Corp. 630,000 32,681 .99
ITT Rayonier Inc. 525,000 18,047 .55
James River Corp. of Virginia 300,000 8,100 .25
WEYERHAEUSER CO. 150,000 6,581 .20
WESTVACO CORP. 125,000 5,344 .16
TRANSPORTATION: RAIL & ROAD - 1.97%
Conrail, Inc. 460,000 24,840 .75
Union Pacific Corp. 425,000 23,534 .71
Norfolk Southern Corp. 245,000 16,782 .51
ELECTRONIC COMPONENTS - 1.84%
Intel Corp. 200,000 22,425 .68
MICRON TECHNOLOGY, INC. 400,000 17,850 .54
Motorola, Inc. 240,000 14,370 .44
Texas Instruments Inc. 50,000 5,781 .18
METALS: NONFERROUS - 1.82%
Aluminum Co. of America 900,000 41,850 1.27
Inco Ltd. (Canada) 530,000 13,250 .40
Phelps Dodge Corp. 50,000 2,756 .08
Alumax Inc. /1/ 80,000 2,330 .07
FINANCIAL SERVICES - 1.77%
Student Loan Marketing Assn. 450,000 21,375 .65
Household International, Inc. 300,000 14,812 .45
Beneficial Corp. 200,000 8,900 .27
American Express Co. 170,000 6,056 .18
ADVANTA Corp., Class A 100,000 3,875 .12
CAPITAL ONE FINANCIAL CORP. 150,000 3,150 .10
INDUSTRIAL COMPONENTS - 1.65%
GOODYEAR TIRE & RUBBER CO. 485,000 20,491 .62
Dana Corp. 581,800 16,436 .50
Rockwell International Corp. 250,000 11,406 .35
TRW Inc. 75,000 5,916 .18
FOOD & HOUSEHOLD PRODUCTS - 1.37%
CPC International Inc. 400,000 24,300 .74
ConAgra, Inc. 360,000 12,015 .36
H.J. HEINZ CO. 200,000 9,050 .27
LEISURE & TOURISM - 1.28%
Walt Disney Co. 585,000 32,541 .99
Marriott International, Inc. 200,000 6,775 .21
Host Marriott Corp. /1/ 240,000 2,550 .08
MISCELLANEOUS MATERIALS & COMMODITIES - 1.18%
Potash Corp. of Saskatchewan Inc. (Canada) 600,000 28,725 .87
CLEVELAND-CLIFFS INC. 180,000 6,998 .21
TRINOVA Corp. 100,000 3,400 .10
ENERGY EQUIPMENT - 1.13%
Western Atlas Inc. /1/ 371,900 16,782 .51
Schlumberger Ltd. (Netherlands Antilles) 170,000 11,050 .34
Cooper Industries, Inc. 250,000 9,250 .28
AUTOMOBILES - 1.10%
General Motors Corp. 450,000 21,600 .66
FORD MOTOR CO., CLASS A 500,000 14,625 .44
TRANSPORTATION: AIRLINES - 1.08%
AMR Corp. /1/ 295,000 20,134 .61
UAL Corp. /1/ 100,000 11,500 .35
Delta Air Lines, Inc. 60,000 3,907 .12
ELECTRICAL & ELECTRONICS - 1.05%
General Electric Co. 510,000 29,580 .90
GENERAL SIGNAL CORP. 130,000 4,810 .15
Hubbell Inc., Class B 735 42 0
RECREATION & OTHER CONSUMER PRODUCTS - 0.74%
Eastman Kodak Co. 220,000 13,282 .40
THE STANLEY WORKS 140,100 5,604 .17
AMERICAN GREETINGS CORP., CLASS A 200,000 5,600 .17
ELECTRONIC INSTRUMENTS - 0.49%
Johnson Controls, Inc. 280,000 16,030 .49
APPLIANCES & HOUSEHOLD DURABLES - 0.43%
Corning Inc. 300,000 9,600 .29
LADD Furniture, Inc. 326,466 4,448 .14
TEXTILES & APPAREL - 0.37%
VF Corp. 230,000 12,247 .37
MISCELLANEOUS
Other stocks in initial period of acquisition 63,385 1.92
----------- ----------
-
TOTAL STOCKS (COST: $2,345,995,000) 2,847,375 86.45
----------- ----------
-
Principal
Amount
CONVERTIBLE DEBENTURES (000)
ELECTRONIC COMPONENTS- 0.14%
Seagate Technology 5.00% convertible bonds 2003 /2/ $3,280 4,641 .14
----------- ----------
-
TOTAL CONVERTIBLE DEBENTURES (COST: $3,542,000) 4,641 .14
----------- ----------
-
TOTAL EQUITY-TYPE SECURITES (COST: $2,349,537,000) 2,852,016 86.59
----------- ----------
-
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 14.39%
Ford Motor Credit Co. 5.94%-5.96% due 6/9-7/13/95 61,480 61,254 1.86
Pfizer Inc. 5.92%-5.94% due 6/13-6/29/95 46,600 46,434 1.41
American Express Credit Corp. 5.93%-5.99% due
6/19-6/27/95 39,700 39,567 1.20
Beneficial Corp. 5.92%-5.94% due 6/12-6/28/95 37,000 36,878 1.12
American Telephone & Telegraph Co. 5.94% due
7/20/95 33,400 33,124 1.01
E.I. du Pont de Nemours and Co. 5.93%-5.95% due
6/8-6/29/95 31,700 31,589 .96
Xerox Corp. 5.93%-6.07% due 6/1-6/8/95 29,800 29,784 .90
PepsiCo, Inc. 5.93%-5.94% due 6/12-6/13/95 28,620 28,561 .87
Motorola, Inc. 5.93% due 6/14/95 27,600 27,536 .84
Raytheon Co. 5.94%-5.97% due 6/6-6/23/95 26,700 26,644 .81
American General Corp. 5.95% due 6/5-7/10/95 24,100 24,015 .73
Central and South West Corp. 5.96% due 7/10/95 20,000 19,867 .60
H.J. Heinz Co. 5.95% due 6/8/95 15,300 15,280 .46
Pitney Bowes Inc. 5.93% due 6/21/95 15,000 14,948 .45
US WEST Communications, Inc. 5.95% due 6/22/95 14,400 14,348 .44
McDonald's Corp. 5.93% due 6/5/95 8,500 8,493 .26
National Rural Utilities Cooperative Finance Corp.
5.95% due 6/9/95 8,100 8,088 .24
SAFECO Credit Co. Inc. 5.92% due 7/10/95 7,500 7,451 .23
----------- --------
TOTAL SHORT-TERM SECURITIES (COST: $473,863,000) 473,861 14.39
----------- ---------
TOTAL INVESTMENT SECURITIES (COST: $2,823,400,000) 3,325,877 100.98
Excess of payables over money market account, cash
and receivables 32,392 .98
----------- ----------
-
NET ASSETS $3,293,485 100.00
============ ==========
=
</TABLE>
/1/Non-income-producing securities.
/2/Purchased in a private placement transaction;
resale potential extends to qualifed institutional
buyers.
See Notes to Financial Statements
Equity-type securities appearing in the portfolio
since November 30, 1994
--------------------------------------------------
AlliedSignal
ALLTEL
American Greetings
Bausch & Lomb
Capital One Financial
Caterpillar
Chase Manhattan
Chubb
CIGNA
Cleveland-Cliffs
Comerica
Cox Communications
Crompton & Knowles
Engelhard
Fleet Financial
Ford Motor
General Signal
Giant Food
Goodyear Tire & Rubber
H.J. Heinz
Micron Technology
Northern Trust
Norwest
Oracle Systems
J.C. Penney
E.W. Scripps
Seagate Technology
Sears, Roebuck
The Stanley Works
Tosco
TOTAL
Unocal
Wal-Mart
Westvaco
Weyerhaeuser
Equity-type securities eliminated from the portfolio
since November 30, 1994
-----------------------------------------------------
Allegheny Power System
Archer Daniels Midland
BFGoodrich
C.R. Bard
Chevron
Cincinnati Milacron
Circus Circus Enterprises
Compaq Computer
E-Sytems
Hewlett-Packard
Honeywell
Houston Industries
ITT
Raytheon
Roadway Services
<PAGE>
--------------------------------------------------------------------
American Variable Insurance Series
Asset Allocation Fund
Investment Portfolio, May 31, 1995
(Unaudited)
Stocks 65.28
Government Bonds 11.76
Corporate Bonds 10.97
Cash 9.21
Convertible Debentures 1.79
Other .99
<TABLE>
<CAPTION>
Percent
of Net
LARGEST INDIVIDUAL HOLDINGS Assets
<S> <C> <C> <C>
American Home Products 2.22
International Business Machines 1.75
Warner-Lambert 1.66
Eli Lilly 1.65
Rockwell International 1.47
Amoco 1.42
PepsiCo 1.38
CBS 1.35
Textron 1.30
Bristol-Myers Squibb 1.29
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
---------------------------------------------------- ---------- ---------- ----------
HEALTH & PERSONAL CARE- 10.07%
American Home Products Corp. 225,000 $16,566 2.22
Warner-Lambert Co. 150,000 12,431 1.66
Eli Lilly and Co. 165,000 12,313 1.65
Bristol-Myers Squibb Co. 145,000 9,624 1.29
Pfizer Inc 97,500 8,592 1.15
Kimberly-Clark Corp. 60,000 3,600 .48
Baxter International Inc. 100,000 3,488 .47
Tambrands Inc. 80,000 3,430 .46
Bausch & Lomb Inc. 80,000 3,250 .43
Abbott Laboratories 48,000 1,920 .26
BANKING- 7.41%
First Fidelity Bancorporation 150,000 7,969 1.07
Citicorp 140,000 7,490 1.00
First Interstate Bancorp 85,000 7,140 .96
BankAmerica Corp. 100,000 5,225 .70
PNC Bank Corp. 160,000 4,320 .58
Fleet Financial Group, Inc. 120,000 4,185 .56
First Union Corp. 80,000 3,920 .52
Chase Manhattan Corp. 75,000 3,469 .46
Bankers Trust New York Corp. 50,000 3,137 .42
U.S. Bancorp 120,000 2,940 .39
J.P. Morgan & Co. Inc. 35,000 2,481 .33
First Tennessee National Corp. 50,000 2,175 .29
Comerica Inc. 30,000 949 .13
ENERGY SOURCES- 6.30%
Amoco Corp. 155,000 10,598 1.42
Royal Dutch Petroleum Co. (New York Registered
Shares) (Netherlands) 60,000 7,605 1.02
Phillips Petroleum Co. 195,000 7,069 .95
Unocal Corp. 225,000 6,666 .89
Atlantic Richfield Co. 50,000 5,806 .78
Kerr-McGee Corp. 100,000 5,575 .75
Chevron Corp. 75,000 3,684 .49
INSURANCE- 5.68%
CIGNA Corp. 121,800 9,105 1.22
SAFECO Corp. 145,000 8,519 1.14
Allstate Corp. 220,000 6,628 .89
American General Corp. 176,700 6,096 .82
AMBAC Inc. 130,000 5,200 .70
American International Group, Inc. 30,000 3,412 .46
St. Paul Companies, Inc. 40,000 2,035 .27
Ohio Casualty Corp. 44,000 1,331 .18
MERCHANDISING- 3.61%
Limited Inc. 295,000 6,564 .88
May Department Stores Co. 125,000 4,906 .66
J.C. Penney Co., Inc. 80,000 3,770 .50
Sears, Roebuck and Co. 60,000 3,383 .45
Melville Corp. 75,000 2,981 .40
Walgreen Co. 60,000 2,888 .39
Wal-Mart Stores, Inc. 100,000 2,500 .33
MULTI-INDUSTRY- 3.11%
Textron Inc. 160,000 9,740 1.30
Tenneco Inc. 170,000 8,160 1.09
Minnesota Mining and Manufacturing Co. 90,000 5,389 .72
BEVERAGES & TOBACCO- 2.30%
PepsiCo, Inc. 210,000 10,290 1.38
Seagram Co. Ltd. (Canada) 230,000 6,900 .92
TELECOMMUNICATIONS- 2.21%
Bell Atlantic Corp. 100,000 5,575 .75
Sprint Corp. 130,000 4,355 .58
Pacific Telesis Group 150,000 4,013 .54
AT&T Corp. 50,000 2,537 .34
DATA PROCESSING & REPRODUCTION- 2.19%
International Business Machines Corp. 140,000 13,055 1.75
Apple Computer, Inc. 80,000 3,320 .44
TRANSPORTATION: RAIL & ROAD- 2.19%
CSX Corp. 90,000 6,863 .92
Union Pacific Corp. 70,000 3,876 .52
Norfolk Southern Corp. 50,000 3,425 .46
Conrail, Inc. 40,000 2,160 .29
AEROSPACE & MILITARY TECHNOLOGY- 2.12%
Boeing Co. 130,000 7,654 1.02
General Motors Corp., Class H 150,000 6,112 .82
Northrop Grumman Corp. 40,000 2,095 .28
CHEMICALS- 2.06%
E.I. du Pont de Nemours and Co. 120,000 8,145 1.09
Great Lakes Chemical Corp. 60,000 3,660 .49
Eastman Chemical Co. 60,000 3,600 .48
INDUSTRIAL COMPONENTS- 2.04%
Rockwell International Corp. 240,000 10,950 1.47
Dana Corp. 150,000 4,237 .57
FOREST PRODUCTS & PAPER- 2.02%
Weyerhaeuser Co. 100,000 4,387 .59
Union Camp Corp. 80,000 4,150 .55
ITT Rayonier Inc. 100,000 3,438 .46
Georgia-Pacific Corp. 40,000 3,110 .42
FOOD & HOUSEHOLD PRODUCTS- 1.77%
General Mills, Inc. 100,000 5,188 .69
H.J. Heinz Co. 100,000 4,525 .61
Ralston Purina Co. 70,000 3,517 .47
UTILITIES: ELECTRIC & GAS- 1.69%
Long Island Lighting Co. 195,000 3,047 .41
Detroit Edison Co. 100,000 3,012 .40
General Public Utilities Corp. 90,000 2,700 .36
Houston Industries Inc. 60,000 2,587 .35
Entergy Corp. 50,000 1,238 .17
BROADCASTING & PUBLISHING- 1.65%
CBS Inc. 150,000 10,050 1.35
Times Mirror Co., Class A 66,566 1,548
Times Mirror Co., preferred equity redemption
cumulative stock, Series B 28,434 661 .30
BUSINESS & PUBLIC SERVICES- 1.21%
Dun & Bradstreet Corp. 170,000 9,010 1.21
ENERGY EQUIPMENT- 1.02%
Schlumberger Ltd. (Netherlands Antilles) 60,000 3,900 .52
Cooper Industries, Inc. 100,000 3,700 .50
RECREATION & OTHER CONSUMER PRODUCTS- 0.99%
Eastman Kodak Co. 70,000 4,226 .57
Stanley Works 42,100 1,684 .23
American Greetings Corp., Class A 50,000 1,400 .19
METALS: NONFERROUS- 0.62%
Aluminum Co. of America 100,000 4,650 .62
ELECTRONICS INSTRUMENTS- 0.61%
Johnson Controls, Inc. 80,000 4,580 .61
AUTOMOBILES- 0.58%
General Motors Corp. 90,000 4,320 .58
MISCELLANEOUS MATERIALS & COMMODITIES- 0.55%
TRINOVA Corp. 120,000 4,080 .55
ELECTRICAL & ELECTRONICS- 0.48%
Hubbell Inc., Class B 63,000 3,583 .48
ELECTRONICS COMPONENTS- 0.44%
Advanced Micro Devices, Inc. /1/ 100,000 3,287 .44
MACHINERY & ENGINEERING- 0.36%
Crompton & Knowles Corp. 150,000 2,719 .36
----------- -----------
TOTAL STOCKS (cost: $419,417,000) 487,343 65.28
----------- -----------
Principal
Amount
Convertible Debentures (000)
---------------------------------------------------- ---------- ---------- ----------
INDUSTRIALS & SERVICES- 1.79%
Turner Broadcasting System, Inc. 0% 2007 /2/ $10,000 4,225 .57
Hanson America Inc. 2.39% 2001 /2/ 5,000 3,950 .53
USX Corp. 0% 2005 8,000 3,600 .48
Time Warner Inc. 0% 2012 4,800 1,590 .21
---------- ----------
TOTAL CONVERTIBLE DEBENTURES (cost: $12,757,000) 13,365 1.79
---------- ----------
MISCELLANEOUS
Other equity-type securities in initial period of
acquisition (cost:$6,812,000) 7,411 .99
---------- ----------
TOTAL EQUITY-TYPE SECURITIES (cost: $438,986,000) 508,119 68.06
---------- ----------
Bonds & Notes
-----------------------------------------------
U.S. TREASURY OBLIGATIONS- 11.76%
6.75% 1997 12,000 12,197 1.63
5.75% 1997 12,000 11,957 1.60
5.375% 1998 12,000 11,807 1.58
6.875% 1996 10,000 10,134 1.36
6.50% 1996 10,000 10,081 1.35
8.75% 1997 6,000 6,371 .85
8.75% 2008 5,000 5,729 .77
9.25% 1998 5,000 5,469 .73
8.75% 2000 3,000 3,354 .45
8.875% 1999 2,500 2,736 .37
10.375% 2009 2,000 2,542 .34
8.50% 1997 1,000 1,052 .14
8.00% 1996 1,000 1,027 .14
7.875% 1996 1,000 1,021 .14
6.75% 1997 1,000 1,015 .13
11.75% 2010 500 690 .09
10.75% 2003 500 639 .09
FINANCIAL- 5.11%
General Motors Acceptance Corp. 8.875% 2010 3,235 3,784
General Motors Acceptance Corp. 7.00% 2000 3,000 3,040
General Motors Acceptance Corp. 9.625% 2001 2,000 2,280
General Motors Acceptance Corp. 6.70% 1997 2,000 2,010
General Motors Acceptance Corp. 8.375% 1997 1,500 1,550 1.70
Capital One Bank 8.52% 1996 7,500 7,707
Capital One Bank 8.125% 1998 3,500 3,596 1.51
American Re Corp. 10.875% 2004 4,500 5,002 .67
General Electric Capital Corp. 8.875% 2009 2,000 2,345 .31
H.F. Ahmanson & Co. 9.875% 1999 1,400 1,553 .21
B.F. Saul Real Estate Investment Trust 11.625% 2002 1,500 1,466 .19
Security Pacific Corp. 10.25% 2001 1,000 1,180 .16
National Westminster Bancorp Inc. 9.45% 2001 1,000 1,132 .15
Shopping Center Associates 6.75% 2004 /2/ 1,000 965 .13
Golden West Financial Corp. 10.25% 2000 500 577 .08
INDUSTRIALS- 4.14%
Container Corp. of America 9.75% 2003 6,500 6,581 .88
Oryx Energy Co. 9.50% 1999 3,000 3,128
Oryx Energy Co. 10.00% 1999 1,000 1,062 .56
Marvel Holdings Inc., Series B, 0% 1998 4,800 3,384 .45
Pohang Iron & Steel 7.50% 2002 3,000 3,079 .41
General Motors Corp. 8.80% 2021 2,500 2,841 .38
News America Holdings Inc. 10.125% 2012 2,000 2,277 .30
USX Corp. 9.625% 2003 2,000 2,237 .30
Coso Funding Corp. 8.87% 2001 /2/ 2,000 2,118 .28
Acme Metals Inc. 12.50% 2002 2,000 2,040 .27
CenCall Communications Corp. 0%/10.125% 2004 /3/ 3,000 1,470 .20
Kaiser Aluminum Corp. 12.75% 2003 750 808 .11
TRANSPORTATION- 0.85%
Delta Air Lines, Inc. 9.875% 2000 2,000 2,193
Delta Air Lines, Inc. 9.20% 2014 1,000 991 .43
Federal Express Corp. 7.53% 2006 1,475 1,480 .20
AMR Corp. 9.75% 2000 1,000 1,096 .15
United Air Lines, Inc. 9.00% 2003 500 518 .07
COLLATERALIZED MORTGAGE OBLIGATIONS-
(PRIVATELY ORIGINATED) /4/- 0.34%
American Airlines Inc., 1991-A, 9.71% 2007 2,333 2,539 .34
ELECTRIC UTILITIES- 0.23%
Texas Utilities Electric Co. 9.75% 2021 1,500 1,690 .23
TELEPHONE UTILITIES- 0.19%
GTE Corp. 10.25% 2020 1,205 1,405 .19
ASSET-BACKED OBLIGATIONS /4/- 0.11%
Standard Credit Card Trust, 1990-6A, 9.375% 1998 750 795 .11
---------- ----------
TOTAL BONDS & NOTES (cost: $170,226,000) 169,740 22.73
---------- ----------
Short-Term Securities
------------------------------------------------
CORPORATE SHORT-TERM NOTES- 5.99%
Associates Corp. of North America 6.12% due 6/1/95 20,850 20,846 2.79
Ford Motor Credit Co. 5.94% due 7/6/95 12,700 12,625 1.69
Raytheon Co. 5.94% due 6/14/95 11,300 11,274 1.51
U.S. TREASURY OBLIGATIONS- 2.44%
8.875% due 2/15/96 11,000 11,225 1.50
4.25% due 5/15/96 5,000 4,925 .66
11.50% due 11/15/95 2,000 2,054 .28
--------- ---------
TOTAL SHORT-TERM SECURITIES (cost: $63,658,000) 62,949 8.43
--------- ---------
TOTAL INVESTMENT SECURITIES (cost: $672,870,000) 740,808 99.22
Excess of money market account, cash and
receivables over payables 5,790 .78
--------- ---------
NET ASSETS $746,598 100.00
========= =========
</TABLE>
/1/Non-income-producing securities.
/2/Purchased in a private placement transaction;
resale potential extends to qualified institutional
buyers.
/3/Represents a zero coupon bond which will
convert to a coupon-bearing security at a
later date.
/4/Pass-through securities backed by a pool of
mortgages or other loans on which principal payments
are periodically made. Due to the possibility
of early principal payments, the effective
maturity of these securities is shorter than the
stated maturity.
See Notes to Financial Statements
Equity-type securities appearing in the portfolio
since November 30, 1994
---------------------------------------------------
Advanced Micro Devices
Allstate
American Greetings
American International Group
AT&T Corp.
Bausch & Lomb
Chase Manhattan
Chevron
CIGNA
Conrail
Crompton & Knowles
First Tennessee National
Georgia-Pacific
Great Lakes Chemical
Johnson Controls
Kimberly-Clark
Pacific Telesis
J.C. Penney
Ralston Purina
Schlumberger
Sears, Roebuck
Sprint
Stanley Works
Tambrands
TRINOVA
Unocal
Walgreen
Wal-Mart
Weyerhaeuser
Equity-type securities eliminated from the portfolio
since November 30, 1994
-----------------------------------------------------
American Brands
American Express
AMR
Archer Daniels Midland
Brown Group
Circus Circus Enterprises
Consolidated Edison Co. of New York
General Electric
GTE
Hewlett-Packard
LIN Broadcasting
Litton Industries
Mobil
Texas Utilities
Texaco
Unicom
Western Atlas
Xerox
<PAGE>
---------------------------------------------------------------
AMERICAN VARIABLE INSURANCE SERIES
HIGH-YIELD BOND FUND
INVESTMENT PORTFOLIO - MAY 31, 1995 (Unaudited)
U.S. CORPORATE BONDS 73.56%
NON-U.S. CORPORATE BONDS 10.87%
U.S. GOVERNMENT BONDS 7.94%
NON-U.S. GOVERNMENT BONDS 2.09%
CASH 5.50%
STOCKS 0.04%
<TABLE>
<CAPTION>
Percent
of Net
LARGEST HOLDINGS Assets
<S> <C> <C> <C>
U.S. Treasury 7.94%
Rogers Cantel Mobile Communications 2.97
Container Corp. of America 2.94
California Energy 2.91
MSF Communications 2.59
Thrifty Payless 2.32
Fort Howard 2.32
Foodmaker 2.28
Comcast Cellular 2.22
Coltec Industries 2.21
Principal Market Percent
Amount Value Of Net
BONDS & NOTES (000) (000) Assets
CELLULAR, PAGING & WIRELESS COMMUNICATIONS - 19.34%
Rogers Cantel Mobile Communications Inc. 10.75% 2001 $11,248 $11,642
Rogers Cantel Mobile Communications Inc. 11.125% 2002 2,500 2,600 2.97
Comcast Cellular Corp., Series B, 0% 2000 10,000 7,300
Comcast Cellular Corp., Series A, 0% 2000 4,500 3,285 2.22
NEXTEL Communications, Inc. 0%/11.50% 2003 /1/ /2/ 11,000 6,270
NEXTEL Communications, Inc. 0%/9.75% 2004 /1/ /2/ 7,000 3,430 2.03
Centennial Cellular Corp. 8.875% 2001 10,000 9,600 2.01
PanAmSat, LP PanAmSat Capital Corp. 9.75% 2000 7,000 7,140
PanAmSat, LP PanAmSat Capital Corp. 0%/11.375% 2003 /2/ 2,000 1,420 1.79
MobileMedia Communications, Inc. 0%/10.50% 2003 /2/ 12,750 8,288 1.73
Horizon Cellular Telephone Co., LP Horizon Finance
Corp. 0%/11.375% 2000 /2/ 8,500 6,715 1.40
Paging Network, Inc. 11.75% 2002 5,800 6,264 1.31
CenCall Communications Corp. 0%/10.125% 2004 /2/ 11,750 5,757 1.20
Dial Call Communications, Inc. 0%/12.25% 2004 /2/ 10,250 5,074 1.06
Cellular, Inc. 0%/11.75% 2003 /2/ 4,500 3,358 .70
Heartland Wireless Communications, Inc., Units
13.00% 2003 /3/ 3,000 3,210 .67
PriCellular Wireless Corp. 0.%/14.00% 2001 /2/ 1,500 1,193 .25
FOREST PRODUCTS & PAPER - 10.00%
Container Corp. of America 9.75% 2003 11,750 11,897
Container Corp. of America 11.25% 2004 2,000 2,140 2.94
Fort Howard Corp. 9.25% 2001 4,250 4,229
Fort Howard Corp. 8.25% 2002 4,000 3,760
Fort Howard Corp. 11.00% 2002 /4/ 1,873 1,967
Fort Howard Corp. 9.00% 2006 1,250 1,156 2.32
Riverwood International Corp. 10.75% 2000 5,000 5,425
Riverwood International Corp. 11.25% 2002 2,000 2,200
Riverwood International Corp. II 10.75% 2000 500 542 1.70
P T Indah Kiat Pulp & Paper Corp. 8.875% 2000 /3/ 5,250 4,830
P T Indah Kiat Pulp & Paper Corp., Series B, 11.875%
2002 1,000 1,025 1.22
Pacific Lumber Co. 10.50% 2003 4,000 3,790 .79
MAXXAM Group Inc. 11.25% 2003 2,000 1,940 .41
P T Pabrik Kertas Tjiwi Kimia 13.25% 2001 1,000 1,073 .23
Repap Wisconsin, Inc. Second Priority 9.875% 2006 1,000 980 .20
P T Inti Indorayon Utama 9.125% 2000 1,000 920 .19
MANUFACTURING & MATERIALS - 8.06%
Coltec Industries Inc. 9.75% 2000 8,450 8,746
Coltec Industries Inc. 9.75% 1999 1,750 1,811 2.21
MagneTek, Inc. 10.75% 1998 5,000 5,250 1.10
Acme Metals Inc. 0%/13.50% 2004 /2/ 3,000 2,340
Acme Metals Inc. 12.50% 2002 2,000 2,040 .91
AK Steel Corp. 10.75% 2004 4,000 4,215 .88
Owens-Illinois, Inc. 11.00% 2003 3,500 3,876 .81
UCAR Global Enterprises Inc. 12.00% 2005 /3/ 3,000 3,248 .68
Kaiser Aluminum & Chemical Corp. 12.75% 2003 2,500 2,694 .56
Building Materials Corp. of America 0%/11.75% 2004 /2/ 3,500 2,118 .44
Exide Corp. 10.00% 2005 /3/ 1,250 1,275 .27
WestPoint Stevens Inc. 8.75% 2001 1,000 987 .20
U.S. TREASURY OBLIGATIONS - 7.94%
7.375% 1997 10,000 10,328 2.16
7.75% 2001 8,000 8,631 1.80
11.625% 2004 4,600 6,303 1.32
8.50% 2000 5,000 5,555 1.16
6.75% 2000 5,000 5,141 1.07
6.875% 1999 2,000 2,059 .43
DIVERSIFIED MEDIA & CABLE TELEVISION &
TELECOMMUNICATIONS - 6.98%
MFS Communications Co., Inc. 0%/9.375% 2004 /2/ 18,250 12,410 2.59
Continental Cablevision, Inc. 10.625% 2002 4,000 4,200
Continental Cablevision, Inc. 8.625% 2003 2,000 1,990
Continental Cablevision, Inc. 8.50% 2001 1,500 1,500
Continental Cablevision, Inc. 8.875% 2005 1,000 1,000 1.82
American Media Operations, Inc. 11.625% 2004 5,750 6,153 1.29
Century Communications Corp. 9.50% 2000 2,750 2,771
Century Communications Corp. 9.75% 2002 1,000 1,010 .79
Jones Intercable, Inc. 9.625% 2002 1,500 1,541 .32
People's Choice TV Corp., Units 0%/13.125% 2004 /2/ 1,250 656 .14
Storer Communications, Inc. 10.00% 2003 134 133 .03
LEISURE, TOURISM & RESTAURANTS - 6.35%
Foodmaker, Inc. 9.75% 2002 7,250 5,908
Foodmaker, Inc. 9.25% 1999 5,500 4,978 2.28
Plitt Theatres, Inc. 10.875% 2004 7,500 7,425 1.55
Harrah's Jazz Co., Harrah's Jazz Finance Corp. 14.25%
2001 4,500 4,950 1.03
Kloster Cruise Ltd. 13.00% 2003 4,500 3,690 .77
Four Seasons Hotels Inc. 9.125% 2000 /3/ 3,500 3,430 .72
CABLE & TELEPHONE IN THE UNITED KINGDOM - 5.82%
Bell Cablemedia PLC 0%/11.95% 2004 /2/ 15,500 10,114 2.11
Videotron Holdings PLC 0%/11.125% 2004 /2/ 14,500 9,280 1.94
International CableTel Inc. 0%/10.875% 2003 /2/ 13,250 8,480 1.77
INDEPENDENT POWER PRODUCERS - 4.74%
California Energy Co., Inc. 0%/10.25% 2004 /2/ 16,800 13,944 2.91
Midland Cogeneration Venture LP, Series C-94 10.33%
2002 /4/ 6,070 6,222
Midland Cogeneration Venture LP, Series C-91 10.33%
2002 /4/ 2,446 2,507 1.83
MERCHANDISING - 4.35%
Thrifty PayLess, Inc. 12.25% 2004 5,500 5,720
Thrifty PayLess, Inc. 11.75% 2003 4,000 4,280
Thrifty PayLess, Inc., Units 12.25% 2004 1,000 1,120 2.32
Barnes & Noble, Inc. 11.875% 2003 4,250 4,675 .98
CompUSA Inc. 9.50% 2000 2,175 2,066 .43
Levitz Furniture Corp. 12.375% 1997 2,000 1,990 .42
AnnTaylor, Inc. 8.75% 2000 1,000 955 .20
BROADCASTING & PUBLISHING - 4.14%
Marvel Holdings Inc., Series B, 0% 1998 14,900 10,505 2.19
Infinity Broadcasting Corp. 10.375% 2002 5,250 5,539 1.16
Univision Television Group, Inc. 11.75% 2001 2,500 2,700 .56
Summitt Communications Group, Inc. 10.50% 2005 1,000 1,080 .23
ENERGY & RELATED COMPANIES - 3.70%
Triton Energy Corp. 0%/9.75% 2002 /2/ 4,500 3,960
Triton Energy Corp. 0% 1997 1,000 815 1.00
Wilrig AS 11.25% 2004 4,000 4,020 .84
Global Marine, Inc. 12.75% 1999 2,700 2,977 .62
Tuboscope Vetco International Corp. 10.75% 2003 2,000 2,040 .43
Mesa Capital Corp. 0%/12.75% 1998 /2/ 2,000 1,930 .40
DUAL DRILLING CO. 9.875% 2004 1,250 1,103 .23
FLORES & RUCKS, INC. 13.50% 2004 750 836 .18
FOOD RETAILING - 3.22%
Stater Bros. Holdings Inc. 11.00% 2001 6,750 6,784 1.42
Star Markets Company, Inc. 13.00% 2004 5,000 5,375 1.12
Vons Companies, Inc. 9.625% 2002 2,000 2,135 .44
Safeway Inc. 10.00% 2002 1,000 1,130 .24
TRANSPORTATION - 2.76%
Delta Air Lines, Inc. 10.375% 2011 2,000 2,260
Delta Air Lines, Inc. 10.00% 2014 /3/ 2,000 2,172
Delta Air Lines, Inc. 1993 Pass-Through Trusts,
Series A2, 10.50% 2016 1,000 1,129
Delta Air Lines, Inc. 10.375% 2022 750 852 1.34
TNT Transport (Europe) PLC TNT (USA) Inc. 11.50% 2004 3,000 3,135 .65
Viking Star Shipping Inc. 9.625% 2003 2,000 1,940 .41
NWA Trust, Class D, 13.875% 2008 1,250 1,350 .28
NWA INC. 12.092% 2000 /4/ 346 359 .08
BEVERAGES - 2.12%
Dr Pepper Bottling Co. of Texas 10.25% 2000 5,500 5,720 1.20
Canandaigua Wine Co., Inc. 8.75% 2003 4,500 4,410 .92
NON-U.S. GOVERNMENTS AND GOVERNMENTAL
AUTHORITIES - 2.09%
Argentina (Republic of) 7.313% 2005 /5/ 8,000 5,230 1.09
United Mexican States Collateralized Eurobond:
Series B, 6.25% 2019 2,000 1,120
Series A, 6.25% 2019 1,500 840 .41
Argentina (Republic of) Bocon 7.232% 2001 /5/ 2,000 1,236 .26
Poland Discount Euro 7.125% 2024 750 540 .11
Brazil (Federal Republic of) DCB, 7.313% 2012 /5/ 1,000 531 .11
Poland PDI Bonds 3.25% 2014 /5/ /6/ 1,000 520 .11
CONSTRUCTION & HOUSING - 1.46%
Triangle Pacific Corp. 10.50% 2003 2,800 2,842 .60
Del Webb Corp. 9.75% 2003 1,500 1,455
Del Webb Corp. 9.00% 2006 750 671 .44
Toll Corp. 9.50% 2003 1,350 1,340
Toll Corp. 10.50% 2002 650 671 .42
MISCELLANEOUS - 0.51%
Neodata Services, Inc., Series B, 0%/12.00% 2003 /2/ 3,000 2,445 .51
BUSINESS & PUBLIC SERVICES - 0.47%
Protection One Alarm Monitoring, Inc., Units
0%/13.625% 2005 /2/ /3/ 2,000 1,350 .28
ADT Operations, Inc. 9.25% 2003 900 920 .19
REAL ESTATE - 0.41%
B.F. Saul Real Estate Investment Trust 11.625% 2002 2,000 1,955 .41
-------- --------
TOTAL BONDS & NOTES (cost: $453,229,000) 452,057 94.46
-------- -------
Number Market Percent
of Value of Net
shares (000) Assets
COMMON STOCKS - 0.04%
Marriott International, Inc. 4,512 $153 .03
Host Marriott Corp. /6/ 4,512 48 .01
Dial Page, Inc., warrants /6/ 14,750 - .00
-------- --------
TOTAL COMMON STOCKS (cost: $162,000) 201 .04
-------- --------
Principal
Amount
SHORT-TERM SECURITIES (000)
CORPORATE SHORT-TERM NOTES - 5.02%
American General Corp. 5.95% due 6/16/95 $8,800 8,777 1.83
Associates Corp. of North America 6.12% due 6/1/95 6,260 6,259 1.31
PepsiCo, Inc. 5.94% due 6/8/95 5,000 4,993 1.04
McDonald's Corp. 5.93% due 6/5/95 4,000 3,997 .84
-------- -------
TOTAL SHORT-TERM SECURITIES (cost: $24,026,000) 24,026 5.02
-------- -------
TOTAL INVESTMENT SECURITIES (cost: $477,417,000) 476,284 99.52
Excess of money market account, cash and
receivables over payables 2,286 .48
--------- -------
NET ASSETS $478,570 100.00
========= =======
</TABLE>
/1/ Company has agreements to acquire Dial Call and CenCall, also held in the
portfolio.
/2/ Represents a zero coupon bond which will convert to a coupon-bearing
security at a later date.
/3/ Purchased in a private placement transaction; resale potential extends to
qualified institutional buyers.
/4/ Pass-through securities backed by a pool of mortgages or other loans on
which principal
payments are periodically made. Due to the possibility of early principal
payments, the effective maturity of these securities is shorter than the stated
maturity.
/5/ Coupon rate may change periodically.
/6/ Non-income-producing security.
See Notes to Financial Statements
<PAGE>
------------------------------------------------------------------------------
American Variable Insurance Series
U.S. Government/AAA-Rated Securities Fund
Investment Portfolio, May 31, 1995
(Unaudited)
U.S. TREASURY BONDS 41.07%
CASH 21.95%
FEDERAL AGENCY MORTGAGE-RELATED SECURITIES 14.08%
PRIVATE MORTGAGE & ASSET-BACKED SECURITIES 9.51%
OTHER FEDERAL OBLIGATIONS 5.80%
CORPORATE BONDS 4.05%
DEVELOPMENT AGENCIES & NON-U.S. GOVT. BONDS 3.54%
<TABLE>
<CAPTION>
PRINCIPAL MARKET PERCENT
AMOUNT VALUE OF NET
BONDS & NOTES (000) (000) ASSETS
------------------------------------------------ -------- -------- --------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS - 41.07%
8.125% 1998 $30,250 $31,885 6.20%
10.375% 2009 24,500 31,146 6.05
8.875% 2017 18,000 22,264 4.33
9.25% 1998 20,000 21,875 4.25
12.00% 2013 13,000 19,114 3.71
8.875% 2000 16,250 18,208 3.54
8.75% 2008 10,000 11,458 2.23
8.875% 1997 10,000 10,667 2.07
6.50% 1996 10,000 10,081 1.96
8.00% 1997 8,000 8,261 1.61
11.75% 2010 5,500 7,585 1.47
8.375% 2008 5,000 5,612 1.09
8.75% 2000 2,750 3,074 .60
14.25% 2002 2,000 2,881 .56
15.75% 2001 1,500 2,261 .44
13.125% 2001 1,500 2,020 .39
10.75% 2003 1,250 1,596 .31
9.00% 1998 1,250 1,352 .26
FEDERAL AGENCY OBLIGATIONS - MORTGAGE
PASS-THROUGHS /1/ - 12.18%
Government National Mortgage Assn. 9.50% 2019-2021 10,412 11,011
Government National Mortgage Assn. 8.50% 2022 5,765 5,984
Government National Mortgage Assn. 7.50% 2022-2023 5,293 5,327
Government National Mortgage Assn. 5.00% 2024 4,987 4,976
Government National Mortgage Assn. 5.50% 2024 4,702 4,645 7.54
Government National Mortgage Assn. 8.00% 2022 3,977 4,075
Government National Mortgage Assn. 9.00% 2009-2016 2,004 2,108
Government National Mortgage Assn. 10.50% 2019 490 536
Government National Mortgage Assn. 11.00% 2019 102 110
Government National Mortgage Assn. 12.00% 2012-2014 10 12
Federal National Mortgage Assn. 8.50% 2023 8,701 8,995
Federal National Mortgage Assn. 7.50% 2009 5,019 5,113 4.06
Federal National Mortgage Assn. 9.00% 2011-2025 4,874 5,081
Federal National Mortgage Assn. 7.00% 2018-2023 1,729 1,707
Federal Home Loan Mortgage Corp. 9.00% 2021-2022 2,639 2,751
Federal Home Loan Mortgage Corp. 9.50% 2016 226 237 .58
Federal Home Loan Mortgage Corp. 12.00% 2010 3 3
FEDERAL AGENCY OBLIGATIONS - OTHER - 5.80%
FNSM Principal STRIPS 0%/7.56% 2001/2/ 15,000 13,484
FNSM Principal STRIPS 0%/8.62% 2022/2/ 10,000 8,192
FNSM Principal STRIPS 0%/7.94% 2001/2/ 5,000 4,530 5.39
FNSM Principal STRIPS 0%/8.25% 2022/2/ 2,000 1,559
Federal National Mortgage Assn. 8.625% 2021 2,000 2,116 .41
ASSET-BACKED OBLIGATIONS/1/ - 5.54%
Standard Credit Card Master Trust 1991-1, Class A,
8.50% 1997 8,000 8,176
Standard Credit Card Master Trust 1991-3, Class A,
8.875% 1999 5,500 5,885 3.09
Standard Credit Card Trust 1990-6, Series A,
9.375% 1998 1,750 1,856
MBNA Credit Card Trust 1991-A, 7.75% 1998 7,500 7,643 1.49
Case Equipment Loan Trust 1995-A, 7.30% 2002 4,882 4,955 .96
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED)/1/ - 3.97%
GE Capital Mortgage Services, Inc., Series 1994-15,
Class A-10, 6.00% 2009 8,000 7,100 1.38
Prudential Home Mortgage Securities Co., Inc.,
Series 1992-33, Class A-12, 7.50% 2022 5,724 5,744 1.12
CMC Securities Corp. I, Series 1993-E, Class S-9,
6.50% 2008 4,518 4,239 .82
Nomura Asset Securities, Series 1994-MD1,
Class A-1B, 7.526% 2018/3/ 3,250 3,351 .65
FINANCIAL - 3.06%
The Trustees of Columbia University in the City of
New York, Series B, 8.65% 2003 3,000 3,366
The Trustees of Columbia University in the City of 1.08
New York, Series B, 8.62% 2001 2,000 2,198
General Electric Capital Corp. 8.70% 2007 2,500 2,865
General Electric Capital Corp. 8.625% 2008 2,000 2,302 1.00
Signal Capital Corp. 9.95% 2006 3,162 3,613 .70
National Westminster Bancorp Inc. 12.125% 2002 1,256 1,412 .28
DEVELOPMENTAL AUTHORITIES - 2.87%
International Bank for Reconstruction & Development
7.90% 1998 3,000 3,127
International Bank for Reconstruction & Development
14.90% 1997 1,200 1,390
International Bank for Reconstruction & Development
9.77% 1998 1,000 1,094
International Bank for Reconstruction & Development 1.30
9.76% 1998 1,000 1,093
Inter-American Development Bank 9.50% 1997 4,000 4,282 .83
European Investment Bank 8.875% 2001 2,000 2,231 .44
Asian Development Bank 8.00% Eurobonds 1996 1,500 1,538 .30
COLLATERALIZED MORTGAGE OBLIGATIONS
(FEDERAL AGENCIES)/1/ - 1.90%
Federal Home Loan Mortgage Corp., Series 1625,
Class SG, 5.042% 2008 /3/ /4/ 4,304 2,635
Federal Home Loan Mortgage Corp., Series 1716,
Class A, 6.50% 2009 2,250 2,173
Federal Home Loan Mortgage Corp., Series 1625,
Class SC, 5.042% 2008 /3/ /4/ 3,150 1,746
Federal Home Loan Mortgage Corp., GNMA Series 21, 1.90
Class SE, 5.88% 2023 /3/ /4/ 2,896 1,502
Federal Home Loan Mortgage Corp., Series 1673,
Class SA, 4.728% 2024 /3/ /4/ 2,000 898
Federal Home Loan Mortgage Corp., Series 83-B,
Class B-3, 12.50% 2013 745 810
TELEPHONE UTILITIES - 0.88%
Nippon Telegraph & Telephone Corp. 9.50% 1998 3,000 3,268 .64
BellSouth Savings and Security ESOP Trust 9.125%
2003 1,144 1,247 .24
GOVERNMENTS (EXCLUDING U.S. GOVERNMENT) - 0.67%
Ontario (Province of) 15.75% 2012 1,700 2,046
Ontario (Province of) 15.25% 2012 1,145 1,390 .67
INDUSTRIALS - 0.11%
DeBartolo Capital Corp. II 8.00% Euronotes 1996 575 579 .11
-------- --------
TOTAL BONDS & NOTES (cost: $400,300,000) 401,646 78.05
-------- --------
SHORT-TERM SECURITIES
------------------------------------------------
CORPORATE SHORT-TERM NOTES - 15.32%
Ford Motor Credit Co. 5.94%-5.95% due 6/9-6/14/95 15,530 15,503 3.01
PepsiCo, Inc. 5.95% due 6/20-6/21/95 13,000 12,956 2.52
General Electric Capital Corp. 5.93% due 6/6/95 12,500 12,488 2.43
Associates Corp. of North America 6.12% due 6/1/95 11,710 11,708 2.28
American General Corp. 5.95% due 6/13/95 8,000 7,983 1.55
Raytheon Co. 5.98% due 6/19/95 7,100 7,077 1.38
Central and South West Corp. 5.95% due 6/5/95 6,100 6,095 1.18
PACCAR Financial Corp. 5.95% due 6/16/95 5,000 4,987 .97
U.S. TREASURY OBLIGATIONS - 6.25%
9.375% due 4/15/96 11,500 11,831 2.30
8.875% due 2/15/96 10,000 10,205 1.98
7.875% due 2/15/96 10,000 10,134 1.97
-------- --------
TOTAL SHORT-TERM SECURITIES (cost: $111,648,000) 110,967 21.57
-------- --------
TOTAL INVESTMENT SECURITIES (cost: $511,948,000) 512,613 99.62
Excess of money market account, cash and receivables
over payables 1,980 .38
-------- --------
NET ASSETS $514,593 100.00%
======== ========
</TABLE>
/1/ Pass-through securities backed by a pool of mortgages or other loans on
which principal
payments are periodically made. Due to the possibility of early principal
payments, the
effective maturity of these securities is shorter than the stated maturity.
/2/ Represents a zero coupon bond which will convert to a coupon-bearing
security at a later date.
/3/ Coupon rates may change periodically.
/4/ Represents an inverse floater, which is a floating rate note whose interest
rate moves in the opposite direction of prevailing interest rates.
See Notes to Financial Statements
<PAGE>
------------------------------------------------------------------------------
American Variable Insurance Series
Cash Management Fund
Investment Portfolio, May 31,1995
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE PERCENT OF
SHORT-TERM SECURITIES (000) (000) NET ASSETS
<S> <C> <C> <C>
CORPORATE SHORT-TERM NOTES - 95.09%
SAFECO Credit Co. Inc. 5.97% due 6/20/95 $7,000 $6,977 3.81 %
Coca-Cola Co. 5.90% due 6/13/95 6,500 6,486 3.54
Commercial Credit Co. 5.93% due 7/12/95 6,500 6,455 3.52
Beneficial Corp. 5.97% due 6/26/95 6,400 6,372 3.48
H.J. Heinz Co. 5.95% due 6/8-7/13/95 6,100 6,086 3.32
American General Finance Corp. 5.94% due 6/1/95 6,000 5,999 3.27
PepsiCo, Inc. 5.96% due 6/6/95 6,000 5,994 3.27
J.C. Penney Funding Corp. 5.93% due 6/29/95 6,000 5,972 3.26
National Rural Utilities Cooperative Finance Corp.
5.94% due 7/5/95 6,000 5,965 3.26
Pitney Bowes Credit Corp. 5.90% due 7/25/95 6,000 5,946 3.24
AT&T Corp. 5.96% due 6/27/95 5,700 5,675 3.10
Toys "R" Us, Inc. 5.91%-5.94% due 6/12-6/20/95 5,600 5,586 3.05
American Express Credit Corp. 5.93% due 6/28/95 5,500 5,475 2.99
E.I. du Pont de Nemours and Co. 5.95% due 6/8/95 5,300 5,293 2.89
CPC International Inc. 6.00% due 6/9/95 5,200 5,192 2.83
Pfizer Inc. 5.92% due 6/1/95 5,000 4,999 2.73
Campbell Soup Co. 6.00% due 6/2/95 5,000 4,998 2.73
Hershey Foods Corp. 6.00% due 6/2/95 5,000 4,998 2.73
Southwestern Bell Telephone Co. 5.94% due 6/7/95 5,000 4,994 2.73
Xerox Corp. 5.95% due 6/12/95 5,000 4,990 2.72
Sara Lee Corp. 5.92% due 6/21/95 5,000 4,983 2.72
Chevron Transport Corp. 5.94% due 6/21/95 5,000 4,983 2.72
Motorola Credit Corp. 5.94% due 6/26/95 5,000 4,979 2.72
Hewlett-Packard Co. 5.95% due 6/30/95 5,000 4,975 2.72
Nordstrom Credit Inc. 5.95% due 7/11/95 5,000 4,966 2.71
U S WEST Communications, Inc. 5.95% due 6/6/95 4,600 4,595 2.51
Ford Motor Credit Co. 5.95% due 6/15/95 4,600 4,589 2.50
General Electric Capital Corp. 5.95% due 7/18/95 4,400 4,365 2.38
Baltimore Gas & Electric Co. 5.92% due 6/29/95 4,250 4,230 2.31
Abbott Laboratories 5.93% due 6/14/95 4,000 3,991 2.18
McDonald's Corp. 5.94% due 6/13/95 3,750 3,742 2.04
Kimberly-Clark Corp. 5.97% due 6/23/95 3,400 3,387 1.85
Vermont American Corp. 5.93% due 6/5/95 3,200 3,197 1.74
Eli Lilly and Co. 5.93% due 6/22/95 2,800 2,790 1.52
FEDERAL AGENCY DISCOUNT NOTES - 4.52%
Tennessee Valley Authority 5.90% due 6/19/95 5,000 4,985 2.72
Federal National Mortgage Assn. 5.90% due 6/14/95 3,300 3,292 1.80
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: $182,501,000) 182,501 99.61
Excess of cash and receivables over payables 714 .39
---------- ----------
NET ASSETS $183,215 100.00%
========== ==========
</TABLE>
See Notes to Financial Statements
<PAGE>
Financial Statements
Statement of Assets and Liabilities at May 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
--------------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities at market
(cost: $1,950,035; $1,336,591;
$2,823,400; $672,870; $477,417;
$511,948; $182,501
and $7,954,762, respectively) $2,540,712 $1,472,084 $3,325,877 $740,808
Money market account 100 500 92 100
Cash 7 14 2 790
Receivables for-
Sales of investments 12,662 33,818 12,036 7,636
Sales of fund's shares 602 638 - 249
Dividends and accrued
interest 1,541 6,424 9,436 4,796
---------- ---------- ---------- ----------
2,555,624 1,513,478 3,347,443 754,379
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 32,296 60 52,206 7,463
Repurchases of fund's shares - - 556 -
Management services 926 832 1,138 305
Accrued expenses 45 195 58 13
---------- ---------- ---------- ----------
33,267 1,087 53,958 7,781
NET ASSETS AT ---------- ---------- ---------- ----------
MAY 31, 1995 $2,522,357 $1,512,391 $3,293,485 $746,598
=========== =========== =========== ===========
Shares of beneficial interest
outstanding (unlimited
shares authorized) 69,868,200 114,034,755 118,175,852 59,422,351
Net asset value per share $36.10 $13.26 $27.87 $12.56
</TABLE>
(Continued)
<TABLE>
<CAPTION>
U.S. (dollars
Government/ in
High-Yield AAA-Rated Cash thousands)
Bond Securities Management
Fund Fund Fund Total
--------------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities at market
(cost: $1,950,035; $1,336,591;
$2,823,400; $672,870; $477,417;
$511,948; $182,501
and $7,954,762, respectively) $476,284 $512,613 $182,501 $1,171,398
Money market account 100 100 - 200
Cash 9 10 105 124
Receivables for-
Sales of investments 1,490 5,167 - 6,657
Sales of fund's shares 351 - 684 1,035
Dividends and accrued
interest 7,646 6,087 - 13,733
---------- ---------- ---------- ----------
485,880 523,977 183,290 1,193,147
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 7,098 8,895 - 15,993
Repurchases of fund's shares - 261 - 261
Management services 203 219 71 493
Accrued expenses 9 9 4 22
---------- ---------- ---------- ----------
7,310 9,384 75 16,769
NET ASSETS AT ---------- ---------- ---------- ----------
MAY 31, 1995 $478,570 $514,593 $183,215 $1,176,378
=========== =========== =========== ===========
Shares of beneficial interest
outstanding (unlimited
shares authorized) 34,502,593 45,361,829 16,434,023
Net asset value per share $13.87 $11.34 $11.15
</TABLE>
See Notes to Financial Statements
*************************************************
<PAGE>
Statement of Operations for the six months ended May 31, 1995 (Unaudited)
(dollars in thousands)
<TABLE>
<CAPTION>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 7,369 $ 16,335 $ 36,655 $ 7,702
Interest 8,258 9,242 11,799 8,799
---------- ---------- ---------- ----------
15,627 25,577 48,454 16,501
---------- ---------- ---------- ----------
Expenses:
Management services fee 4,977 4,689 6,268 1,685
Reports to shareholders 58 35 76 18
Registration statement and
prospectus 107 72 144 33
Postage, stationery and
supplies 84 56 113 26
Trustees' fees 19 13 26 6
Auditing and legal fees 28 20 36 11
Custodian fee 107 553 134 31
Taxes other than federal
income tax 37 24 50 11
Other expenses 14 17 18 5
---------- ---------- ---------- ----------
5,431 5,479 6,865 1,826
---------- ---------- ---------- ----------
Net investment income 10,196 20,098 41,589 14,675
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
ON INVESTMENTS:
Realized gain (loss) 66,414 14,559 53,774 10,980
---------- ---------- ---------- ----------
Net change in unrealized
appreciation (depreciation):
Beginning of period 322,212 111,219 139,391 (7,649)
End of period 590,677 135,540 502,477 67,938
---------- ---------- ---------- -----------
Net unrealized appreciation 268,465 24,321 363,086 75,587
---------- ---------- ---------- -----------
Net realized gain (loss) and
unrealized appreciation
on investments 334,879 38,880 416,860 86,567
---------- ---------- ---------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $345,075 $ 58,978 $458,449 $101,242
========= =========== ========= =========
</TABLE>
(Continued)
<TABLE>
<CAPTION>
U.S.
High- Government/ Cash
Yield AAA-Rated Manage-
Bond Securities ment
Fund Fund Fund Total
---------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 1 - - $ 1
Interest 23,095 $ 19,615 $6,025 48,735
---------- ---------- ---------- ----------
23,096 19,615 6,025 48,736
---------- ---------- ---------- ----------
Expenses:
Management services fee 1,073 1,233 463 2,769
Reports to shareholders 11 13 6 30
Registration statement and
prospectus 20 24 10 54
Postage, stationery and
supplies 16 19 8 43
Trustees' fees 4 4 2 10
Auditing and legal fees 8 9 6 23
Custodian fee 21 23 9 53
Taxes other than federal
income tax 7 8 4 19
Other expenses 4 4 2 10
---------- ---------- ---------- ----------
1,164 1,337 510 3,011
---------- ---------- ---------- ----------
Net investment income 21,932 18,278 5,515 45,725
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
ON INVESTMENTS:
Realized gain (loss) (9,273) (1,895) - (11,168)
---------- ---------- ---------- ----------
Net change in unrealized
appreciation (depreciation):
Beginning of period (42,565) (25,324) - (67,889)
End of period (1,133) 665 - (468)
---------- ----------- ---------- ----------
Net unrealized appreciation 41,432 25,989 - 67,421
---------- ----------- ---------- ----------
Net realized gain (loss) and
unrealized appreciation
on investments 32,159 24,094 - 56,253
---------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 54,091 $ 42,372 $5,515 $101,978
========= =========== ========= =========
</TABLE>
See Notes to Financial Statements
**********************************************8
<PAGE>
Statement of Changes in Net Assets
for the six months end May 31, 1995
(Unaudited)
(dollars in thousands)
<TABLE>
<CAPTION>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $ 10,196 $ 20,098 $ 41,589 $ 14,675
Net realized gain (loss) on investments 66,414 14,559 53,774 10,980
Net unrealized appreciation
on investments 268,465 24,321 363,086 75,587
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 345,075 58,978 458,449 101,242
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (8,598) (12,017) (40,437) (14,370)
Distributions from net realized
gain on investments (51,801) (44,137) (112,521) (9,640)
----------- ----------- ----------- -----------
Total dividends and distributions (60,399) (56,154) (152,958) (24,010)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
6,995,928; 9,029,370; 5,738,353;
2,483,094; 3,986,921; 3,633,004;
9,943,338 and 41,810,008 shares,
respectively 232,297 115,094 148,688 29,132
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
1,934,375; 4,442,736; 6,228,280;
2,119,795; 1,614,533; 1,620,539;
423,499 and 18,383,757 shares,
respectively 60,399 56,154 152,958 24,010
Cost of shares repurchased:
2,538,007; 5,312,915; 2,118,356;
1,820,335; 1,359,138; 2,743,644;
13,827,962 and 29,720,357 shares,
respectively (82,356) (66,567) (54,018) (21,146)
'Net increase (decreaase) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 210,340 104,681 247,628 31,996
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 495,016 107,505 553,119 109,228
NET ASSETS:
Beginning of period $2,027,341 $1,404,886 $2,740,366 $637,370
----------- ----------- ----------- -----------
End of period (including
undistributed net investment
income: $6,153; $15,904; $22,350;
$7,838; $11,423; $9,322; $2,983
and $75,973, respectively) $2,522,357 $1,512,391 $3,293,485 $746,598
============ ============ ============ ============
</TABLE>
(Continued)
<TABLE>
<CAPTION>
U.S. thousands)
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
---------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 21,932 $ 18,278 $ 5,515 $ 45,725
Net realized gain (loss) on investments (9,273) (1,895) - (11,168)
Net unrealized appreciation
on investments 41,432 25,989 - 67,421
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 54,091 42,372 5,515 101,978
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (20,578) (17,512) (4,675) (42,765)
Distributions from net realized
gain on investments - - - 0
----------- ----------- ----------- -----------
Total dividends and distributions (20,578) (17,512) (4,675) (42,765)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
6,995,928; 9,029,370; 5,738,353;
2,483,094; 3,986,921; 3,633,004;
9,943,338 and 41,810,008 shares,
respectively 52,266 39,681 110,497 202,444
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
1,934,375; 4,442,736; 6,228,280;
2,119,795; 1,614,533; 1,620,539;
423,499 and 18,383,757 shares,
respectively 20,578 17,512 4,675 42,765
Cost of shares repurchased:
2,538,007; 5,312,915; 2,118,356;
1,820,335; 1,359,138; 2,743,644;
13,827,962 and 29,720,357 shares,
respectively (17,712) (30,197) (153,528) (201,437)
'Net increase (decreaase) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 55,132 26,996 (38,356) 43,772
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 88,645 51,856 (37,516) 102,985
NET ASSETS:
Beginning of period $389,925 $462,737 $ 220,731 $1,073,393
----------- ----------- ----------- -----------
End of period (including
undistributed net investment
income: $6,153; $15,904; $22,350;
$7,838; $11,423; $9,322; $2,983
and $75,973, respectively) $478,570 $514,593 $ 183,215 $1,176,378
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements
***********************************************
<PAGE>
Statement of Changes in Net Assets
for the year ended November 30, 1994
(dollars in thousands)
<TABLE>
<CAPTION>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
---------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 15,017 $ 24,404 $ 71,607 $ 28,340
Net realized gain (loss) on investments 52,610 43,558 112,012 9,504
Net unrealized appreciation
(depreciation) on investments (15,930) 21,617 (105,971) (41,610)
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 51,697 89,579 77,648 (3,766)
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (14,164) (18,349) (66,032) (27,518)
Distributions from net realized
gain on investments (59,961) (15,818) (83,551) (8,793)
----------- ----------- ----------- -----------
Total dividends and distributions (74,125) (34,167) (149,583) (36,311)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,010,480; 43,466,926; 13,134,545;
7,970,745; 6,513,155; 4,821,568;
28,332,973 and 118,250,392 shares,
respectively 448,195 581,497 337,011 92,993
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,334,569; 2,609,004; 5,881,586;
3,143,664; 2,912,711; 3,038,723;
552,766 and 20,473,023 shares,
respectively 74,125 34,167 149,583 36,311
Cost of shares repurchased:
6,590,651; 7,999,702; 4,320,323;
2,577,232; 4,132,973; 6,589,305;
27,641,214 and 59,851,400 shares,
respectively (209,659) (106,589) (110,017) (29,742)
'Net increase in net assets ----------- ----------- ----------- -----------
resulting from capital share
transactions 312,661 509,075 376,577 99,562
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 290,233 564,487 304,642 59,485
NET ASSETS:
Beginning of year $1,737,108 $ 840,399 $2,435,724 $577,885
----------- ----------- ----------- -----------
End of year (including
undistributed net investment
income: $4,555; $7,823; $21,198;
$7,533; $10,069; $8,556; $2,143
and $61,877, respectively) $2,027,341 $1,404,886 $2,740,366 $637,370
============ ============ ============ ============
</TABLE>
(Continued)
<TABLE>
<CAPTION>
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
---------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 37,246 $ 32,510 $ 7,112 $ 76,868
Net realized gain (loss) on investments (27) (2,512) - (2,539)
Net unrealized appreciation
(depreciation) on investments (61,207) (53,355) - (114,562)
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations (23,988) (23,357) 7,112 (40,233)
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (34,372) (31,462) (6,080) (71,914)
Distributions from net realized
gain on investments (6,377) (2,925) - (9,302)
----------- ----------- ----------- -----------
Total dividends and distributions (40,749) (34,387) (6,080) (81,216)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,010,480; 43,466,926; 13,134,545;
7,970,745; 6,513,155; 4,821,568;
28,332,973 and 118,250,392 shares,
respectively 93,032 55,095 313,018 461,145
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,334,569; 2,609,004; 5,881,586;
3,143,664; 2,912,711; 3,038,723;
552,766 and 20,473,023 shares,
respectively 40,749 34,387 6,080 81,216
Cost of shares repurchased:
6,590,651; 7,999,702; 4,320,323;
2,577,232; 4,132,973; 6,589,305;
27,641,214 and 59,851,400 shares,
respectively (57,974) (74,350) (304,971) (437,295)
'Net increase in net assets ----------- ----------- ----------- -----------
resulting from capital share
transactions 75,807 15,132 14,127 105,066
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 11,070 (42,612) 15,159 (16,383)
NET ASSETS:
Beginning of year $378,855 $505,349 $205,572 $1,089,776
----------- ----------- ----------- -----------
End of year (including
undistributed net investment
income: $4,555; $7,823; $21,198;
$7,533; $10,069; $8,556; $2,143
and $61,877, respectively) $389,925 $462,737 $220,731 $1,073,393
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
Notes to Financial Statements
1. American Variable Insurance Series (the "series") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company with seven different funds. The assets of each fund are
segregated, with each fund, in effect, accounted for separately. The following
paragraphs summarize the significant accounting policies consistently followed
by the series in the preparation of its financial statements:
Equity-type securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the period or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date. Bonds and notes are
valued at prices obtained from a bond-pricing service provided by a major
dealer in bonds, when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, such securities
will be valued at the mean of their representative quoted bid and asked prices
or, if such prices are not available, at the mean of such prices for securities
of comparable maturity, quality, and type. Short-term securities with original
or remaining maturities in excess of 60 days are valued at the mean of their
quoted bid and asked prices. Short-term securities with 60 days or less to
maturity are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by the Valuation Committee of the Board
of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. The series does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Investment securities and other assets and liabilities denominated in
non-U.S. currencies are recorded in the financial statements after translation
into U.S. dollars utilizing rates of exchange on the last business day of the
period. Purchases and sales of investment securities, income, and expenses are
calculated using the prevailing exchange rate as accrued. The series does not
identify the portion of each amount shown in the series' statement of
operations under the caption "Realized Gain (Loss) and Unrealized Appreciation
on Investments" that arises from changes in non-U.S. currency exchange rates.
Common expenses incurred by the series are allocated among the funds based
upon relative net assets. In all other respects, expenses are charged to each
fund as incurred on a specific identification basis.
Pursuant to the custodian agreement, each fund within the series receives
credits against its custodian fee for imputed interest on certain balances with
the custodian bank. Custodian fees for the series aggregated $878,000 of which
$11,000 was paid by these credits rather than in cash.
2. It is the series' policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required. There was no difference between book and tax realized gains on
securities transactions for the six months ended May 31, 1995. The U.S.
Government/AAA-Rated Securities Fund has available at May 31, 1995 net capital
loss carryforwards totaling $4,407,000, which may be used to offset capital
gains realized during subsequent years through November 30, 2002. For book and
federal income tax purposes, the amounts of unrealized appreciation and
depreciation and the cost of portfolio securities at May 31, 1995 were as
follows:
(dollars in thousands)
<TABLE>
<CAPTION>
Asset
Growth Interna- Growth-Income Allocation
Fund tional Fund Fund Fund
<S> <C> <C> <C> <C>
Unrealized
appreciation $ 658,086 $ 201,545 $ 540,131 $ 75,389
Unrealized
depreciation 67,409 66,005 37,654 7,451
Net unrealized
appreciation
(depreciation) 590,677 135,540 502,477 67,938
Cost of portfolio
securities 1,950,035 1,336,591 2,823,400 672,870
</TABLE>
(Continued)
<TABLE>
<CAPTION>
High-Yield U.S. Government/ Cash
Bond AAA-Rated Management
Fund Securities Fund Fund Total
<S> <C> <C> <C> <C>
Unrealized
appreciation $ 11,890 $ 10,476 - $22,366
Unrealized
depreciation 13,023 9,811 - 22,834
Net unrealized
appreciation
(depreciation) (1,133) 665 - (468)
Cost of portfolio
securities 477,417 511,948 $182,501 1,171,866
</TABLE>
3. The fees for management services were paid pursuant to an agreement with
Capital Research and Management Company (CRMC), with which certain officers and
Trustees of the series are affiliated. The Investment Advisory and Service
Agreement provides for monthly fees, accrued daily, based on the following
annual rates: Growth Fund - 0.60% of the first $30 million of average net
assets; 0.50% of such assets in excess of $30 million but not exceeding $600
million; 0.45% of such assets in excess of $600 million but not exceeding $1.2
billion; 0.42% of such assets in excess of $1.2 billion but not exceeding $2.0
billion; and 0.37% of such assets in excess of $2.0 billion; Growth-Income Fund
- 0.60% of the first $30 million of average net assets; 0.50% of such assets in
excess of $30 million but not exceeding $600 million; 0.45% of such assets in
excess of $600 million but not exceeding $1.5 billion; 0.40% of such assets in
excess of $1.5 billion but not exceeding $2.5 billion; and 0.32% of such assets
in excess of $2.5 billion; Asset Allocation Fund - 0.60% of the first $30
million of average net assets; 0.50% of such assets in excess of $30 million
but not exceeding $600 million; and 0.42% of such assets in excess of $600
million; High-Yield Bond Fund - 0.60% of the first $30 million of average net
assets; 0.50% of such assets in excess of $30 million but not exceeding $600
million; and 0.46% of such assets in excess of $600 million; U.S.
Government/AAA-Rated Securities Fund - 0.60% of the first $30 million of
average net assets; 0.50% of such assets in excess of $30 million but not
exceeding $600 million; and 0.40% of such assets in excess of $600 million;
Cash Management Fund - 0.50% of the first $100 million of average net assets;
0.42% of such assets in excess of $100 million but not exceeding $400 million;
and 0.38% of such assets in excess of $400 million. For the International Fund,
the Board of Trustees has approved an amended Investment Advisory and Service
Agreement containing a reduced fee schedule. Effective December 1, 1994, the
amended agreement provides for reduced fees at the following annual rates:
0.90% of the first $60 million of average net assets; 0.78% of such assets in
excess of $60 million but not exceeding $600 million; 0.60% of such assets in
excess of $600 million but not exceeding $1.2 billion; 0.48% of such assets in
excess of $1.2 billion but not exceeding $2 billion; and 0.465% of such assets
in excess of $2 billion.
Trustees of the series who are unaffiliated with CRMC may elect to defer part
or all of the fees earned for services as members of the board. Amounts
deferred are not funded and are general unsecured liabilities of the series. As
of May 31, 1995, aggregate amounts deferred were $28,000.
4. (dollars in thousands)
<TABLE>
<CAPTION>
Asset
Growth Interna- Growth-Income Allocation
Fund tional Fund Fund Fund
<S> <C> <C> <C> <C>
As of May 31,
1995:
Accumulated
undistributed
net realized
gain (loss) on
investments $ 65,777 $ 13,784 $ 52,378 $ 10,789
Paid-in capital 1,859,750 1,347,163 2,716,280 660,033
For the six months
ended May 31,
1995:
Purchases of
investment
securities* 400,719 121,686 456,108 145,734
Sales of invest-
ment securities* 306,706 160,729 358,195 134,991
</TABLE>
(Continued)
<TABLE>
<CAPTION>
High-Yield U.S. Government/ Cash
Bond AAA-Rated Management
Fund Securities Fund Fund Total
<S> <C> <C> <C> <C>
As of May 31,
1995:
Accumulated
undistributed
net realized
gain (loss) on
investments $ (9,370) $ (4,537) - ($13,907)
Paid-in capital 477,650 509,143 $180,232 1,167,025
For the six months
ended May 31,
1995:
Purchases of
investment
securities* 120,885 76,529 - 197,414
Sales of invest-
ment securities* 71,376 39,534 - 110,910
</TABLE>
*Excludes short-term securities
5. Dividend and interest income for the International Fund is recorded net of
non-U.S. taxes paid. For the six months ended May 31, 1995, such non-U.S.
taxes were $2,268,000. Net realized currency losses on dividends, interest,
withholding taxes reclaimable, and sales of non-U.S. bonds and notes were
$12,000 for the six months ended May 31, 1995.
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
value, invest- (loss) on invest- invest- net Total
Period beginning ment invest- ment ment realized distri-
ended /1/ of period income ments operations income gains butions
------- --------- --------- --------- --------- --------- --------- --------
-
<S> <C> <C> <C> <C> <C> <C> <C>
Growth
Fund
1990 $22.91 $ .54 $(2.27) $(1.73) $ (.56) $ (.64) $(1.20)
1991 19.98 .41 4.48 4.89 (.47) (.22) (.69)
1992 24.18 .29 4.25 4.54 (.31)/2/ - (.31)
1993 28.41 .25 4.13 4.38 (.24) (.21) (.45)
1994 32.34 .24 .69 .93 (.24) (1.09) (1.33)
1995 31.94 .15 4.94 5.09 (.13) (.80) (.93)
Interna-
tional Fund /4/
1990 $10.00 $ .11 $ (.62) $ (.51) $ (.04) - $ (.04)
1991 9.45 .22 .59 .81 (.24) - (.24)
1992 10.02 .19 (.09) .10 (.21) $ (.02) (.23)
1993 9.89 .17 2.50 2.67 (.16) - (.16)
1994 12.40 .25 1.04 1.29 (.20) (.22) (.42)
1995 13.27 .18 .33 .51 (.11) (.41) (.52)
Growth-
Income Fund
1990 $21.43 $ .82 $(1.91) $(1.09) $ (.86) $ (.25) $(1.11)
1991 19.23 .75 2.63 3.38 (.79) (.10) (.89)
1992 21.72 .65 2.74 3.39 (.67) (.27) (.94)
1993 24.17 .63 2.12 2.75 (.63) (.28) (.91)
1994 26.01 .68 .14 .82 (.65) (.88) (1.53)
1995 25.30 .35 3.61 3.96 (.36) (1.03) (1.39)
Asset
Allocation
Fund
1990 $10.17 $ .50 $ (.75) $ (.25) $ (.42) - $ (.42)
1991 9.50 .53 1.11 1.64 (.55) - (.55)
1992 10.59 .48 .94 1.42 (.49) $ (.05) (.54)
1993 11.47 .51 .67 1.18 (.49) (.15) (.64)
1994 12.01 .51 (.57) (.06) (.52) (.18) (.70)
1995 11.25 .25 1.48 1.73 (.25) (.17) (.42)
High-Yield
Bond Fund
1990 $12.82 $1.33 $(1.02) $ .31 $(1.30) - $(1.30)
1991 11.83 1.17 1.78 2.95 (1.25) - (1.25)
1992 13.53 1.10 .62 1.72 (1.08) - (1.08)
1993 14.17 1.09 1.20 2.29 (1.10) $ (.19) (1.29)
1994 15.17 1.27 (2.07) (.80) (1.23) (.25) (1.48)
1995 12.89 .65 .98 1.63 (.65) - (.65)
U.S. Govern-
ment/AAA-
Rated Secu-
rities Fund
1990 $10.74 $ .83 $ (.11) $ .72 $ (.80) - $ (.80)
1991 10.66 .77 .58 1.35 (.79) - (.79)
1992 11.22 .75 .32 1.07 (.76) - (.76)
1993 11.53 .74 .68 1.42 (.75) $ (.05) (.80)
1994 12.15 .76 (1.30) (.54) (.74) (.07) (.81)
1995 10.80 .41 .53 .94 (.40) - (.40)
Cash
Management
Fund
1990 $11.00 $ .71 $ .13 $ .84 $ (.70) - $ (.70)
1991 11.14 .62 .01 .63 (.66) - (.66)
1992 11.11 .35 .01 .36 (.43) - (.43)
1993 11.04 .29 - .29 (.31) - (.31)
1994 11.02 .37 .02 .39 (.32) - (.32)
1995 11.09 .32 (.01) .31 (.25) - (.25)
</TABLE>
(Continued)
<TABLE>
<CAPTION>
Ratio
Net asset Net assets, Ratio of of net
value, end of expenses income to Portfolio
Period end of Total period (in to average average turnover
ended /1/ period return millions) net assets net assets rate
------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Growth
Fund
1990 $19.98 (7.87)% $ 304 .59% 3.00% 16.76%
1991 24.18 24.90 700 .56 1.94 9.83
1992 28.41 18.90 1,212 .53 1.15 11.15
1993 32.34 15.59 1,737 .50 .86 20.40
1994 31.94 2.92 2,027 .49 .78 29.58
1995 36.10 16.40 /3/ 2,522 .24 /3/ .45 /3/ 15.56 /3/
Interna-
tional Fund /4/
1990 $ 9.45 (5.08)% $ 66 1.03% /5/ 3.18% /5/ 4.50%
1991 10.02 8.67 197 1.04 2.62 8.21
1992 9.89 .90 360 1.00 2.11 16.73
1993 12.40 27.20 840 .96 1.75 17.70
1994 13.27 10.48 1,405 .80 2.03 19.66
1995 13.26 4.05 /3/ 1,512 .38 /3/ 1.41 /3/ 10.80 /3/
Growth-
Income Fund
1990 $19.23 (5.27)% $ 535 .56% 4.77% 9.73%
1991 21.72 17.83 1,022 .56 3.80 11.14
1992 24.17 15.90 1,704 .52 3.01 13.60
1993 26.01 11.63 2,436 .49 2.66 24.93
1994 25.30 3.21 2,740 .47 2.72 29.26
1995 27.87 16.43 /3/ 3,293 .23 /3/ 1.40 /3/ 13.87 /3/
Asset
Allocation
Fund
1990 $ 9.50 (2.34)% $ 106 .64% 6.70% 14.39%
1991 10.59 17.63 194 .59 5.56 15.08
1992 11.47 13.69 359 .57 4.73 19.74
1993 12.01 10.59 578 .55 4.66 19.01
1994 11.25 (.54) 637 .53 4.55 36.13
1995 12.56 15.82 /3/ 747 .27 /3/ 2.14 /3/ 20.90 /3/
High-Yield
Bond Fund
1990 $11.83 2.49% $ 58 .68% 11.17% 22.69%
1991 13.53 26.22 107 .63 9.81 18.07
1992 14.17 13.14 197 .59 8.88 47.44
1993 15.17 17.09 379 .56 8.18 34.05
1994 12.89 (5.71) 390 .54 9.37 38.46
1995 13.87 13.16 /3/ 479 .27 /3/ 5.14 /3/ 17.81 /3/
U.S. Govern-
ment/AAA-
Rated Secu-
rities Fund
1990 $10.66 7.11% $ 126 .61% 8.58% 24.01%
1991 11.22 13.24 240 .58 7.91 27.06
1992 11.53 9.83 360 .57 7.08 39.96
1993 12.15 12.65 505 .55 6.42 21.69
1994 10.80 (4.58) 463 .54 6.69 45.21
1995 11.34 8.92 /3/ 515 .27 /3/ 3.73 /3/ 10.11 /3/
Cash
Management
Fund
1990 $11.14 7.91% $ 143 .60% 7.48% -
1991 11.11 5.84 163 .58 5.65 -
1992 11.04 3.31 197 .53 3.24 -
1993 11.02 2.67 206 .51 2.57 -
1994 11.09 3.59 221 .49 3.60 -
1995 11.15 2.83 /3/ 183 .25 /3/ 2.71 /3/ -
</TABLE>
/1/ The periods ended 1990 through 1994 represent fiscal years ended November
30; the period ended 1995 represents the six months ended May 31, 1995
(unaudited).
/2/ Amount includes net realized short-term gains treated as net investment
income for federal income tax purposes.
/3/ Based on operations for the period shown and, accordingly, not
representative of a full year's operations.
/4/ Commenced operations May 1, 1990.
/5/ Annualized
<PAGE>
BOARD OF TRUSTEES
--------------------
CHARLES H. BLACK
Pacific Palisades, California
Private investor and consultant; former
Executive Vice President and Director,
KaiserSteel Corporation
H. FREDERICK CHRISTIE
Palos Verdes Estates, California
Private investor; former President and
Chief Executive Officer,
The Mission Group;
former President, Southern California
Edison Company
JOE E. DAVIS
Encino, California
Private investor; former Chairman of
the Board, Linear Corporation; former
President and Chief Executive Officer,
National Health Enterprises, Inc.
MARTIN FENTON, JR.
San Diego, California
Chairman of the Board,
Senior Resource Group, Inc.
(senior living centers management)
RICHARD H.M. HOLMES
Hillsborough, California
Retired; former Vice President,
Capital Research and Management
Company
MARY MYERS KAUPPILA
Boston, Massachusetts
Founder and President,
Energy Investment, Inc.
JAMES F. ROTHENBERG
Los Angeles, California
President of the series
President and Director,
Capital Research and Management
Company
THOMAS E. TERRY
Los Angeles, California
Chairman of the Board of the series
Consultant; former Vice President and
Secretary, Capital Research and
Management Company
LEONARD WEIL
Santa Monica, California
Consultant; President Emeritus,
Manufacturers Bank
MARTIN FENTON, JR., AND
JAMES F. ROTHENBERG were
elected to the Board of Trustees
on March 14, 1995.
===========================================================
OTHER OFFICERS
---------------------
JAMES K. DUNTON
Los Angeles, California
Senior Vice President of the series
Senior Vice President and Director,
Capital Research and Management
Company
ABNER D. GOLDSTINE
Los Angeles, California
Senior Vice President of the series
Senior Vice President and Director,
Capital Research and Management
Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President of the series
Senior Vice President - Fund Business
Management Group, Capital Research
and Management Company
CLAUDIA P. HUNTINGTON
Los Angeles, California
Vice President of the series
Senior Vice President,
Capital Research Company
STEVEN N. KEARSLEY
Los Angeles, California
Vice President and Treasurer of the series
Vice President and Treasurer,
Capital Research and Management
Company
DINA N. PERRY
Washington, D.C.
Vice President of the series
Vice President, Capital Research and
Management Company
JOHN H. SMET
Los Angeles, California
Vice President of the series
Vice President, Capital Research and
Management Company
CHAD L. NORTON
Los Angeles, California
Secretary of the series
Vice President - Fund Business
Management Group, Capital Research
and Management Company
DAVID E. CARTER
Los Angeles, California
Assistant Secretary of the series
Associate, Capital Research and
Management Company
MARY C. CREMIN
Los Angeles, California
Assistant Treasurer of the series
Senior Vice President - Fund Business
Management Group, Capital Research
and Management Company
ROBERT P. SIMMER
Los Angeles, California
Assistant Treasurer of the series
Vice President - Fund Business
Management Group, Capital Research
and Management Company
<PAGE>
Results of Shareholder Meeting Held March 14, 1995*
Shares Outstanding on January 6, 1995 (record date) 445,380,048
Shares Voting on March 14, 1995 445,380,048 (100.0%)
<TABLE>
<CAPTION>
Election of Trustees Votes Percent of Votes Percent of Abstentions Percent of
For Shares Withheld Shares Shares
Voting For Withheld Abstaining
----------------------- ---------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Charles H. Black 422,968,255 95.0% 22,411,793 5.0% none 0.00%
H. Frederick Christie 423,008,825 95.0 22,371,223 5.0 none 0.00%
Joe E. Davis 423,467,216 95.1 21,912,833 4.9 none 0.00%
Martin Fenton, Jr. 423,259,985 95.0 21,120,063 5.0 none 0.00%
Richard H.M. Holmes 423,200,628 95.0 22,179,420 5.0 none 0.00%
Mary Myers Kauppila 423,333,720 95.0 22,046,328 5.0 none 0.00%
James F. Rothenberg 423,455,446 95.1 21,924,603 4.9 none 0.00%
Thomas E. Terry 423,604,885 95.1 21,775,163 4.9 none 0.00%
Leonard Weil 422,965,368 95.0 22,414,680 5.0 none 0.00%
Proposal Votes Percent of Votes Percent of Abstention Percent of
For Shares Against Shares Shares
Voting For Voting Abstaining
Against
----------------------- ---------- --------- ---------- ---------- ---------- ----------
Amendment to a fundmental 360,297,892 84.4% 28,363,824 6.6% 38,256,935 9.0%
investment policy
regarding the purchase
of loan participations
Ratification of Auditors Votes Percent of Votes Percent of Abstentions Percent of
For Shares Against Shares Shares
Voting For Voting Abstaining
Against
----------------------- ---------- --------- ---------- ---------- ---------- ----------
Price Waterhouse LLP 414,355,767 93.0% 3,980,445 0.9% 27,043,836 6.1%
</TABLE>
*Consolidated results; votes were tabulated separately by fund. The proposal
concerning loan participations was not presented to the Cash Management Fund.
<PAGE>
---------------------------------------------------------------
OFFICES OF THE SERIES AND OF
THE INVESTMENT ADVISER,
CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
CUSTODIAN OF ASSETS
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02105-1713
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
THIS REPORT IS FOR THE INFORMATION OF AMERICAN VARIABLE INSURANCE SERIES
INVESTORS, BUT IT MAY ALSO BE USED AS SALES LITERATURE WHEN PRECEDED OR
ACCOMPANIED BY THE CURRENT PROSPECTUS FOR AMERICAN VARIABLE INSURANCE SERIES
AND THE PROSPECTUS FOR THE APPLICABLE INSURANCE CONTRACT, WHICH GIVE DETAILS
ABOUT CHARGES, EXPENSES, INVESTMENT OBJECTIVES AND OPERATING POLICIES. IF USED
AS SALES MATERIAL AFTER SEPTEMBER 30, 1995, THIS REPORT MUST BE ACCOMPANIED BY
AN AMERICAN LEGACY II STATISTICAL UPDATE FOR THE MOST RECENTLY COMPLETED
CALENDAR QUARTER.
Litho in USA AGD/FS/2666
(c)1995 American Funds Distributors, Inc.
Lit. No. VI-013-0795
Printed on recycled paper
American Variable Insurance Series
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