AMERICAN VARIABLE INSURANCE SERIES
SEMI-ANNUAL REPORT
for the six months ended May 31, 1996
American Variable Insurance Series is the underlying investment vehicle for the
American Legacy II variable annuity and other insurance contracts.
ABOUT OUR COVER: In Utah's Arches National Park, Delicate Arch stands firm, as
it has for millennia.
American Variable Insurance Series
FUND RESULTS AT A GLANCE
<TABLE>
<CAPTION>
for the periods ended 6/30/96
for the period 6-Year 10-Year
ended 5/31/96 Average Average
6-Month 1-Year Annual Annual
Total Total Compound Compound
Return Return Return Return
<S> <C> <C> <C> <C>
Growth Fund + 7.72% +13.07% +15.71% +14.03%
page 4
International Fund +10.06% +16.51% +12.78% + 9.91%*
(since 5/1/90)
page 10
Growth-Income Fund + 9.55% +21.95% +14.46% +11.71%
page 17
Asset Allocation Fund + 7.43% +18.86% +12.56% +10.79%*
(since 8/1/89)
page 23
Bond Fund (since 1/2/96) - 2.50%* - 1.40%* - -
page 29
High-Yield Bond Fund + 5.63% +11.59% +11.38% +11.12%
page 32
U.S. Government/ - 1.62% + 4.13% + 7.80% + 7.28%
AAA-Rated Securities Fund
page 37
Cash Management Fund + 2.56% + 5.27% + 4.07% + 5.59%
page 40
</TABLE>
*Reflects return for the lifetime of the fund, which is shorter than the
complete period.
This table shows the investment results 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, 1996 cover the first half of our current
fiscal year. Investment results as of June 30, 1996 comply with a Securities
and Exchange Commission requirement to report 1-year, 5-year and 10-year
investment results as of the end of the most recent calendar quarter.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. UNIT PRICE AND RETURN WILL
VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE CONTRACT. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. 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.
DEAR INVESTORS:
This report covers the first half of fiscal 1996 - the six months ended May 31
- - for American Variable Insurance Series, which serves as the underlying
investment vehicle for the American Legacy II variable annuity and other
insurance contracts.
The economy continued to make progress through much of the period. A
modest pickup in consumer spending, housing and exports helped the national
output of goods and services expand at an annual rate of 2.2% in the first
calendar quarter of 1996, with indications of an even higher rate of growth for
the second quarter. This burst of activity, coupled with reports that job
creation was growing faster than anticipated, rekindled concerns among bond
investors that inflationary pressures might begin to rise. Yields on most
fixed-income securities rose sharply, causing bond prices to fall.
Equity markets, on the other hand, maintained an upward bias over the six
months. It has been somewhat unusual in recent years to see stock prices
increase sharply when interest rates rise, yet that is exactly what happened.
Likewise, other factors that might have dampened investor confidence - a less
promising corporate profit outlook and a stalemate on fiscal policy in Congress
- - seemed to have had little effect. Stocks, as measured by Standard & Poor's
500 Composite Index, rose in every month of the period, bolstered in part by
the extraordinary cash flows into equity mutual funds.
While all the equity funds in the Series gained ground, the rise in
interest rates hurt many of the funds' bond holdings. Here are brief comments
on the investment activities of each of the funds:
THE GROWTH FUND increased 7.7% over the six months ended May 31, as sustained
economic growth translated into profit gains for some U.S. corporations.
Retailers and leisure companies, which had earlier lagged the market, pulled to
the fore; many health care companies, which are well represented in the fund's
portfolio, also rose in value. These included pharmaceutical companies
specializing in biotechnology, as well as managed-care providers benefiting
from mergers and cost-cutting measures. Electronic technology remains our
largest area of concentration, and over the period this sector demonstrated its
characteristic volatility. America Online, the nation's largest provider of
online services and the portfolio's largest holding, increased in price 38.2%.
Adobe Systems, on the other hand, which had posted a substantial gain when we
reported to you last, was the fund's least successful holding, showing a price
decline of 45.1%. Of course, we invest in individual companies with good
long-term prospects rather than seeking broad themes, and through careful
research we continue to find attractive opportunities. At the close of the
fiscal period, the fund held about 91% of its assets in equity-type securities
with the balance in cash and equivalents.
THE INTERNATIONAL FUND rose 10.1% during the six-month period. Many non-U.S.
financial markets began to recover from the doldrums of recent years. In Europe
- - where more than half the fund's assets are invested - declining interest
rates moved stock prices higher in many markets in anticipation of
International Fund
Where the Fund's Assets Are Invested
(as of 5/31/96)
Percent of
Net Assets
EUROPE
United Kingdom 10.3%
Sweden 8.3
France 7.4
Germany 5.3
Netherlands 4.8
Spain 3.8
Italy 3.5
Switzerland 3.4
Norway 1.8
Finland 1.4
Ireland 1.4
Other Europe 2.1
53.5
ASIA/PACIFIC
Japan 8.9
Australia 6.6
Hong Kong 5.1
South Korea 2.3
New Zealand 1.4
Other Asia/Pacific 1.0
25.3
THE AMERICAS
Canada 4.7
Mexico 3.8
Brazil 2.4
10.9
OTHER COUNTRIES 1.6
Cash & Equivalents 8.7
Total 100.0%
better business conditions. In Japan the economy showed signs of recovering
from its long downturn, although returns for U.S. investors were limited
somewhat by the decline of the yen against the dollar. Elsewhere, however,
local currency movements boosted returns for U.S. investors. The United
Kingdom, for example, which is the fund's largest area of geographic
concentration, was up 4.6% in local currency and 6.0% measured in U.S. dollars.
Telecommunications continues to be the fund's largest industry concentration
and several of our investments in that area posted large price gains. These
included service providers Telecom Italia (+49.6%) and Telefonica de Espana
(+26.2%). We increased our holding in Telecomunicacoes Brasileiras which,
combined with a 34.1% gain in share price, moved it into our 10 largest
holdings.
THE GROWTH-INCOME FUND posted a gain of 9.6%. The fund invests in a wide
variety of established companies with the potential for rising earnings and
dividends. Many of these companies responded favorably to indications of a
pickup in economic activity. Machinery and chemical-related issues were areas
of particular strength. A rise in consumer spending contributed to price gains
among merchandising companies, such as clothing manufacturer Gap (+48.6%) and
Sears Roebuck (+29.2%), as well as automobile makers like Ford Motor (+29.2%).
Meanwhile, bank stocks cooled somewhat from their advances of recent months as
the rise in interest rates over the period slowed profit growth. Overall, the
portfolio continued to show broad strength: of the 182 stocks held over the
six-month period, 152 rose in price, 28 declined and two were unchanged. Nearly
88% of the portfolio was invested in stocks, with the rest in cash and
equivalents as a buying reserve.
THE ASSET ALLOCATION FUND increased 7.4% for the six months ended May 31. The
fund is managed as though it constitutes the complete investment program of a
prudent investor, with holdings in carefully selected, high-quality common
stocks and bonds. Within the equity portion, rising gasoline prices led to
substantial price gains for energy companies, the fund's largest area of
concentration. Phillips Petroleum (+24.8%), Chevron (+21.0%) and Unocal
(+20.9%) were among the fund's most profitable holdings. A number of retailing
and health & personal care companies continued to benefit from recent
restructuring and merger activity. On the fixed-income side, rising interest
rates pulled bond prices down. (Bond prices tend to rise when interest rates
decline, and vice versa.) At the close of the period, the fund held the
majority of its assets - 64% - in equity-type securities, 23% in bonds and
notes and the remainder in cash and equivalents.
THE BOND FUND closed its first reporting period with a decline of 2.5%. The
fund's launch coincided with a rise in interest rates caused by a surprisingly
strong economy. Although that depressed bond prices, the availability of higher
yielding investments presents fixed-income investors with attractive
opportunities. Extensive research is a key component in finding those
opportunities, and in that regard our newest fund - which can invest in
virtually all types of fixed-income issues - is well positioned. As of May 31,
the portfolio included 16% in lower rated bonds (those rated Ba and BB and
below by Moody's Investors Service and Standard & Poor's respectively) and 13%
in investment-grade corporate bonds. The fund also held 46% in U.S. Treasury
issues and federal agency mortgage-backed securities. This somewhat large
position reflects the current environment of unusually narrow yield spreads
between corporate bonds and government securities. However, with 23% in
short-term money market instruments, the fund is in a good position to take
advantage of buying opportunities.
THE HIGH-YIELD BOND FUND rose 5.6%. Over the past six months, lower rated,
higher risk bonds provided investors with solid returns. Because these
securities respond to the strength or weakness of individual companies, as well
as to interest-rate changes, the fund's investments were cushioned somewhat
from the decline experienced by other fixed-income markets. Indeed, the fund's
return more closely reflected the general strength of the stock market as
improving corporate profits and balance sheets helped boost perceptions of the
credit quality of many bonds in the portfolio. The fund's analysts take a
research-intensive approach and continue to uncover promising opportunities,
particularly among rapidly growing areas such as telecommunications. At the
close of the period, the majority of the portfolio was invested in the
fixed-income issues of 121 corporations.
THE U.S. GOVERNMENT/AAA-RATED SECURITIES FUND declined 1.6% as rising interest
rates pushed bond prices lower. During the six-month period, yields on the
benchmark 30-year Treasury bond moved from a low in January of 6.0% to a high
of 7.1% in May; home mortgage rates rose sharply as well. The fund maintained
its conservative, quality-oriented approach. As of May 31, the fund held about
79% of its assets in a combination of U.S. Treasury issues, Government National
Mortgage Association (GNMA) and other mortgage- and asset-backed securities.
The rest was invested primarily in other federal obligations, corporate bonds
and cash and equivalents. The fund typically invests in "seasoned mortgages" -
those five years old and older - which tend to carry a lower risk of prepayment
and are therefore more resistant to short-term swings in interest rates.
THE CASH MANAGEMENT FUND returned 2.6%, equivalent to a 5.2% annual yield.
While intermediate- and long-term rates rose over the period, short-term rates
declined slightly through February in response to cuts by the Federal Reserve
Board of the federal funds rate - the rate that banks charge each other for
overnight loans - in an attempt to stimulate economic growth. A pickup in
economic activity since then has dampened expectations of further cuts in the
near future, and short-term rates have risen modestly. The fund maintains a
high-quality orientation by concentrating its assets in top-grade commercial
paper. All of its money market securities carry the highest credit rating from
Standard & Poor's or Moody's. The fund offers an alternative to investors who
wish to temporarily reduce their stock or bond investments, or can be used as a
base for making regular investments into other funds.
These last few months are a reminder that price fluctuations are
inevitable in the securities markets. (In fact, as of this writing, stock
prices have dipped somewhat over the last few days.) As always, we encourage
you to maintain a long-term perspective and we will continue to monitor
developments that could affect your investments.
We look forward to reporting to you again after the close of the fiscal
year on November 30.
Cordially,
THOMAS E. TERRY
Chairman of the Board
American Variable Insurance Series
JAMES F. ROTHENBERG
President
American Variable Insurance Series
July 15, 1996
<TABLE>
GROWTH FUND
Investment Portfolio May 31, 1996 (Unaudited)
- -------------------------------------------------------------------------
EQUITY-TYPE
SECURITIES 90.65%
CASH &
EQUIVALENTS 9.35%
- -------------------------------------------------------------------------
<S> <C> <C> <C>
Percent
Of Net
Largest Individual Equity Holdings Assets
- ------------------------------------------------------------------------- -------
America Online 3.65%
Intel 3.22
Walt Disney 2.97
Viacom 2.43
Oracle 1.50
United HealthCare 1.50
Silicon Graphics 1.45
Manpower 1.45
Tele-Communications, TCI Group 1.42
Turner Broadcasting System 1.29
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- -------------------------------------------- -------- -------- -------
Business & Public Services- 15.61%
America Online, Inc. /1/ 2,346,400 $132,572 3.65%
United HealthCare Corp. 990,000 54,326 1.50
Manpower Inc. 1,367,800 52,660 1.45
General Motors Corp., Class E 715,000 40,308 1.11
Columbia/HCA Healthcare Corp. 665,000 35,827 .99
ADT Ltd. /1/ 1,555,000 29,934 .82
WMX Technologies, Inc. 800,000 28,200 .78
Federal Express Corp. /1/ 350,000 26,819 .74
CUC International Inc. /1/ 707,500 26,178 .72
Oxford Health Plans, Inc. /1/ 504,000 23,814 .65
FHP International Corp. /1/ 645,000 18,383 .51
Avery Dennison Corp. 310,000 17,670 .49
PacifiCare Health Systems, Inc., Class B /1/ 165,000 13,654 .38
Ecolab Inc. 350,000 11,375 .31
Apria Healthcare Group Inc. /1/ 300,000 8,775 .24
Ceridian Corp. /1/ 150,000 7,931 .22
Pitney Bowes Inc. 150,000 7,444 .20
USA Waste Services, Inc. /1/ 250,000 7,375 .20
Loewen Group Inc. (Canada) 250,000 7,187 .20
Value Health, Inc. /1/ 250,000 6,812 .19
H&R Block, Inc. 150,000 5,231 .14
Coram Healthcare Corp. /1/ 550,000 2,681 .07
Air & Water Technologies Corp., Class A /1/ 285,000 1,817 .05
Broadcasting & Publishing- 12.40%
Viacom Inc., Class B /1/ 2,080,000 88,140 2.43
Tele-Communications, Inc., Series A, TCI Group /1/ 2,731,950 51,566 1.42
Turner Broadcasting System, Inc., Class B 1,715,100 46,736 1.29
News Corp. Ltd. (American Depositary Receipts) (Australia) 1,270,000 28,416
News Corp. Ltd. preferred shares (American
Depositary Receipts) 635,000 12,303 1.12
Time Warner Inc. 933,000 37,670 1.04
Tele-Communications, Inc., Series A, Liberty Media Group /1/ 1,207,487 36,225 1.00
BHC Communications, Inc., Class A /1/ 286,189 27,832 .76
Gaylord Entertainment Co., Class A 745,500 19,476 .53
U S WEST Media Group /1/ 1,000,000 18,875 .52
New World Communications Group Inc., Class A /1/ 850,000 14,025 .38
Cablevision Systems Corp., Class A /1/ 240,000 11,520 .32
United International Holdings, Inc., Class A /1/ 685,000 9,761 .27
LIN Television Corp. /1/ 304,700 9,750 .27
Comcast Corp., Class A, special stock 500,000 8,688 .24
Marvel Entertainment Group, Inc. /1/ 700,000 8,400 .23
Infinity Broadcasting Corp., Class A /1/ 253,125 6,898 .19
New York Times Co., Class A 200,000 6,575 .18
Jones Intercable, Inc., Class A /1/ 370,000 4,995 .14
Adelphia Communications Corp., Class A /1/ 350,000 2,537 .07
Electronic Components- 11.89%
Intel Corp. 1,550,400 117,055 3.22
LSI Logic Corp. /1/ 1,420,000 44,197 1.22
Texas Instruments Inc. 570,000 32,063 .88
Xilinx, Inc. /1/ 850,000 29,538 .81
SCI Systems, Inc. /1/ 646,263 29,082 .80
Analog Devices, Inc. /1/ 900,000 24,862 .68
Bay Networks, Inc. /1/ 675,000 19,575 .54
Maxim Integrated Products, Inc. /1/ 550,000 18,700 .52
Newbridge Networks Corp. (Canada) /1/ 230,000 16,359 .45
National Semiconductor Corp. /1/ 945,000 15,356 .42
Linear Technology Corp. 400,000 13,800 .38
ADC Telecommunications, Inc. /1/ 250,000 11,500 .32
500,000 11,062 .30
Flextronics International Ltd.(Singapore) /1/ 300,000 9,375 .26
Cirrus Logic, Inc. /1/ 300,000 6,375 .18
Park Electrochemical Corp. 250,000 6,031 .17
Actel Corp. /1/ 300,000 5,887 .16
Seagate Technology /1/ 100,000 5,875 .16
Microchip Technology Inc. /1/ 200,000 5,150 .14
Rogers Corp. /1/ 190,800 4,651 .13
Motorola, Inc. 42,000 2,804 .08
ANTEC Corp. /1/ 150,000 2,569 .07
Data Processing & Reproduction- 10.35%
Oracle Corp. /1/ 1,648,500 54,607 1.50
Silicon Graphics, Inc. /1/ 1,920,000 52,800 1.45
Digital Equipment Corp. /1/ 800,000 41,700 1.15
Compuware Corp. /1/ 897,000 35,207 .97
Adobe Systems Inc. 920,000 34,155 .94
Sybase, Inc. /1/ 1,250,000 28,906 .80
Dell Computer Corp, /1/ 400,000 22,150 .61
Autodesk, Inc. 600,000 20,850 .57
Mentor Graphics Corp. /1/ 1,000,000 17,875 .49
Informix Corp. /1/ 700,000 15,925 .44
Structural Dynamics Research Corp. /1/ 475,000 13,538 .37
International Business Machines Corp. 100,600 10,739 .30
Tandem Computers Inc. /1/ 840,000 10,500 .29
Sequent Computer Systems, Inc. /1/ 350,000 4,637 .13
Cerner Corp. /1/ 160,000 4,000 .11
Intuit Inc. /1/ 70,000 3,640 .10
Electronic Arts /1/ 110,000 3,479 .10
Data General Corp. /1/ 100,000 1,275 .03
Leisure & Tourism- 8.19%
Walt Disney Co. 1,775,000 107,831 2.97
Circus Circus Enterprises, Inc. /1/ 965,000 40,168 1.11
Harrah's Entertainment, Inc. /1/ 850,000 28,581 .79
King World Productions, Inc. /1/ 650,000 27,138 .75
Marriott International, Inc. 500,000 23,750 .65
Trump Hotels & Casino Resorts, Inc. /1/ 650,000 20,475 .56
Host Marriott Corp. /1/ 1,429,100 18,757 .52
Carnival Corp., Class A 500,000 14,875 .41
Mirage Resorts, Inc. /1/ 150,000 8,531 .23
Luby's Cafeterias, Inc. 250,000 6,156 .17
Host Marriott Services Corp. /1/ 153,000 1,205 .03
Merchandising- 4.17%
Barnes & Noble, Inc. /1/ 1,025,000 36,003 .99
Wal-Mart Stores, Inc. 950,000 24,581 .68
Circuit City Stores, Inc. 700,000 22,838 .63
Home Shopping Network, Inc. /1/ 1,470,000 21,131 .58
Consolidated Stores Corp. /1/ 392,900 14,881 .41
Staples, Inc. /1/ 711,562 14,231 .39
Spiegel, Inc., Class A 752,600 8,043 .22
Michaels Stores, Inc. /1/ 300,000 4,988 .14
Toys "R" Us, Inc. /1/ 160,000 4,640 .13
Health & Personal Care- 2.82%
Guidant Corp. 350,000 20,300 .56
Genetics Institute, Inc. /1/ 260,000 17,810 .49
Forest Laboratories, Inc. /1/ 380,000 15,675 .43
SEQUUS Pharmaceuticals, Inc. /1/ 380,808 8,140
SEQUUS Pharmaceuticals, Inc., warrants, expire 1998 /1/ /2/ 40,416 515 .23
Nellcor Puritan Bennett Inc. /1/ 150,000 8,175 .23
Kimberly-Clark Corp. 100,000 7,288 .20
Tambrands Inc. 150,000 6,919 .19
Johnson & Johnson 48,800 4,752 .13
Bausch & Lomb Inc. 100,000 4,300 .12
Paragon Trade Brands, Inc. /1/ 105,000 2,585 .07
Alpha-Beta Technology, Inc. /1/ 200,000 2,375 .07
Revlon Inc., Class A /1/ 69,000 2,165 .06
Pharmacia & Upjohn, Inc. 36,250 1,482 .04
Banking- 2.72%
Banc One Corp. 583,825 21,601 .59
Mercantile Bancorporation Inc. 415,000 19,505 .54
BayBanks, Inc. 132,200 14,278 .39
Commerce Bancshares, Inc. 408,187 14,082 .39
Northern Trust Corp. 245,000 13,414 .37
Charter One Financial, Inc. 250,000 9,094 .25
Huntington Bancshares Inc. 273,750 6,775 .19
Telecommunications- 2.41%
MCI Communications Corp. 1,295,000 37,717 1.04
AirTouch Communications /1/ 1,125,000 35,859 .99
Centennial Cellular Corp. /1/ 300,000 5,100 .14
United States Cellular Corp. /1/ 144,000 4,554 .12
Telephone and Data Systems, Inc. 100,000 4,363 .12
Insurance- 2.38%
EXEL Ltd. (Incorporated in Bermuda) 405,000 28,097 .77
Transatlantic Holdings, Inc. 270,000 17,347 .48
Trenwick Group Inc. 266,800 12,706 .35
Mercury General Corp. 240,000 10,500 .29
NAC Re Corp. 285,000 9,263 .25
CNA Financial Corp. /1/ 80,000 8,000 .22
TIG Holdings, Inc. 20,000 600 .02
Chemicals- 2.04%
Valspar Corp. 690,000 30,532 .84
Great Lakes Chemical Corp. 325,000 20,962 .58
Loctite Corp. 250,000 12,469 .35
Engelhard Corp. 284,400 6,968 .19
Air Products and Chemicals, Inc. 51,400 3,058 .08
Electrical & Electronics- 1.95%
General Instrument Corp. /1/ 836,700 25,833 .71
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts) (Sweden) 1,114,500 25,703 .71
Nokia Corp., Class A (American Depositary Receipts)(Finland) 360,000 15,660 .43
Lucent Technologies Inc. /1/ 100,000 3,800 .10
Transportation: Airlines- 1.86%
Southwest Airlines Co. 1,575,300 43,124 1.19
AMR Corp. /1/ 195,000 18,403 .50
Delta Air Lines, Inc. 75,000 6,216 .17
Recreation & Other Consumer Products- 1.86%
Mattel, Inc. 1,596,288 43,499 1.20
Nintendo Co., Ltd. (Japan) 135,000 9,945 .28
Duracell International Inc. 150,000 6,994 .19
Hasbro, Inc. 185,000 6,984 .19
Energy Equipment- 1.17%
Schlumberger Ltd. (Netherlands Antilles) 325,000 27,097 .75
Reading & Bates Corp./1/ 700,000 15,400 .42
Miscellaneous Materials & Commodities- 0.99%
Pioneer Hi-Bred International, Inc. 635,000 35,878 .99
Textiles & Apparel- 0.84%
Fruit of the Loom, Inc. /1/ 758,300 20,474 .56
Phillips-Van Heusen Corp. 750,000 10,031 .28
Beverages & Tobacco- 0.69%
Philip Morris Companies Inc. 185,000 18,384 .51
PepsiCo, Inc. 200,000 6,650 .18
Financial Services- 0.51%
Federal National Mortgage Assn. 600,000 18,525 .51
Energy Sources- 0.46%
Murphy Oil Corp. 275,000 12,134 .34
Noble Affiliates, Inc. 131,600 4,458 .12
Appliances & Household Durables- 0.30%
Mohawk Industries, Inc. /1/ 650,000 10,888 .30
Multi-Industry- 0.23%
U.S. Industries, Inc. /1/ 390,000 8,483 .23
Transportation: Rail & Road- 0.22%
Greyhound Lines, Inc. /1/ 1,500,000 6,844 .19
Southern Pacific Rail Corp. /1/ 46,720 1,139 .03
Electronic Instruments- 0.21%
Applied Materials, Inc. /1/ 208,000 7,748 .21
Metals: Steel- 0.20%
Nucor Corp. 130,000 7,150 .20
Forest Products & Paper- 0.11%
Rayonier Inc. 105,000 3,938 .11
Construction & Housing- 0.09%
Stone & Webster, Inc. 90,000 3,150 .09
Miscellaneous
Other stocks in initial period of acquisition 119,706 3.30
------- ------
TOTAL STOCKS (cost: $2,375,672,000) 3,267,576 89.97
------- ------
Principal
Amount
Convertible Debentures (000)
- --------------------------------------------------------------------------------- ------- -----
Health & Personal Care- 0.68%
Omnicare, Inc. 5.75% 2003 $6,350 24,638 0.68%
------ -----
TOTAL CONVERTIBLE DEBENTURES (cost: $12,755,000) 24,638 .68
------ -----
TOTAL EQUITY-TYPE SECURITIES (cost: $2,388,427,000) 3,292,214 90.65
Short-Term Securities
- ------------------------------------------------------------------------- ------- ------ -----
Corporate Short-Term Notes- 7.51%
Raytheon Co. 5.25%-5.29% due 6/4-6/7/96 49,326 49,284 1.36
Coca-Cola Co. 5.26% due 6/11/96 40,000 39,936 1.10
General Electric Capital Corp. 5.27%-5.29% due 6/13-7/9/96 31,500 31,352 .86
PepsiCo, Inc. 5.25%-5.28% due 6/13-6/24/96 30,100 30,027 .83
Sara Lee Corp. 5.24% due 6/26/96 25,000 24,904 .68
AIG Funding Inc. 5.28% due 6/10/96 24,600 24,564 .68
Weyerhaeuser Co. 5.27%-5.29% due 6/20-7/26/96 23,000 22,885 .63
American Express Credit Corp. 5.28% due 6/14/96 20,000 19,959 .55
Southwestern Bell Telephone Co. 5.27% due 7/8/96 20,000 19,889 .55
IBM Credit Corp. 5.29% due 6/12/96 10,000 9,982 .27
Federal Agency Discount Notes- 1.07%
Federal National Mortgage Assn. 5.21%-5.25% due 8/13-8/23/96 26,600 26,305 .72
Federal Home Loan Mortgage Corp. 5.04% due 6/3-6/7/96 12,600 12,591 .35
------- -----
TOTAL SHORT-TERM SECURITIES (cost: $311,683,000) 311,678 8.58
------- -----
TOTAL INVESTMENT SECURITIES (cost: $2,700,110,000) 3,603,892 99.23
Excess of money market account, cash and
receivables over payables 27,775 .77
------ ----
NET ASSETS $3,631,667######
====== ====
/1/ Non-income-producing securities.
/2/ Valued under procedures established by the Board of Trustes.
See Notes to Financial Statements
</TABLE>
- -------------------------------------------------------------------------
Equity-type securities appearing in the portfolio
since November 30, 1995
- -------------------------------------------------------------------------
ADC Telecommunications
Air Products and Chemicals
Bay Networks
Carnival
Cerner
Cirrus Logic
CNA Financial
Consolidated Stores
Coram Healthcare
Dell Computer
Electronic Arts
EMC
Flextronics International
General Instrument
Greyhound Lines
Guidant
Host Marriott Services
Informix
Intuit
Kimberly-Clark
King World Productions
Linear Technology
Loewen Group
Lucent Technologies
Manpower
Marvel Entertainment Group
Maxim Integrated Products
Mercury General
Microchip Technology
New World Communications Group
Pioneer Hi-Bred International
Revlon
Telephone and Data Systems
Trump Hotels & Casino Resorts
U.S. Industries
U S WEST Media Group
USA Waste Services
Xilinx
- -------------------------------------------------------------------------
Equity-type securities eliminated from the portfolio
since November 30, 1995
- -------------------------------------------------------------------------
Advanced Micro Devices
Associated Group
BHA Group
Capital Cities/ABC
Caterpillar
Cellular Communications
Cellular Communications of Puerto Rico
Dun & Bradstreet
Gap
HS Resources
Litton Industries
Lubrizol
NYMAGIC
Perrigo
Progressive
Promus Hotel
Tenneco
Textron
Tripos
U.S. Healthcare
Vanguard Cellular Systems
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES INTERNATIONAL FUND
Investment Portfolio, May 31, 1996
(Unaudited)
<S> <C> <C>
Where the Fund's Assets Are Invested
Percent of Percent of
Net Assets Net Assets
--------------------------------------
EUROPE 53.48%
United Kingdom 10.30%
Sweden 8.33
France 7.41
Germany 5.33
Netherlands 4.76
Spain 3.79
Italy 3.53
Switzerland 3.40
Norway 1.79
Finland 1.35
Ireland 1.35
Denmark .89
Belgium .59
Austria .34
Luzembourg .32
ASIA/PACIFIC 25.31%
Japan 8.90
Australia 6.60
Hong Kong 5.10
Korea 2.32
New Zealand 1.37
Philippines .52
Indonesia .50
THE AMERICAS 10.87%
Canada 4.69
Mexico 3.84
Brazil 2.34
OTHER 1.60%
Ghana .51
South Africa .38
Multi-National .71
CASH AND EQUIVALENTS 8.74%
Largest Individual Equity Holdings
Astra 2.42%
Orkla 1.79
Volvo 1.60
Telecomunicacoes Brasileiras 1.59
Mannesmann 1.57
United News & Media 1.55
Compagnie Generale des Etablissements Michelin 1.44
ASEA/BBC Brown Boveri 1.43
Coca-Cola Amatil 1.39
Australia and New Zealand Banking Group 1.36
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- --------------------------------------------------------------------- --------------- ------------- ----------
TELECOMMUNICATIONS - 9.86%
Telecomunicacoes Brasileiras SA, preferred nominative (American
Depositary Receipts) (Brazil) 519722 $33,457 1.59%
Telefonos de Mexico, SA de CV, Class L (American Depositary
Receipts) (Mexico) 832100 27459 1.31
Telecom Italia Mobile SpA (Italy) 11961000 25735
Telecom Italia Mobile SpA, savings shares 276000 377 1.24
Telecom Corp. of New Zealand Ltd. (New Zealand) /1/ 4956800 20121
Telecom Corp. of New Zealand Ltd. (American Depositary 1.00
Receipts) 11700 768
Nippon Telegraph and Telephone Corp. (Japan) 2858 20790 .99
STET - Societa Finanziaria Telefonica p.a. (Italy) 3300000 11809
STET - Societa Finanziaria Telefonica p.a., nonconvertible .96
savings shares 2900000 8328
Tele Danmark AS, Class B (American Depositary Receipts)
(Denmark) 750000 18656 .89
Koninklijke PTT Nederland NV (Netherlands) 230000 8342 .40
Telefonica de Espana, SA (American Depositary Receipts) (Spain) 158000 8275 .39
Telecom Italia SpA (Italy) 2875200 5795
Telecom Italia SpA, savings shares 276000 465 .30
NetCom Systems AB, Class B (Sweden) 305000 3567
NetCom Systems AB, Class A 101600 1165 .23
Philippine Long Distance Telephone Co. (Global Depositary
Receipts) (Philippines) 80000 4400 .21
Vodafone Group PLC (American Depositary Receipts)
(United Kingdom) 66000 2615 .20
Vodafone Group PLC 392976 1557
Telefonica de Sao Paulo SA, preferred nominative (Brazil) 8956000 1893 .09
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp.
(American Depositary Receipts) (Indonesia) 40000 1370 .06
BROADCASTING & PUBLISHING - 8.31%
United News & Media plc (United Kingdom) 2816000 32463 1.55
Television Broadcasts Ltd. (Hong Kong) 4092000 16186 .77
NV Verenigd Bezit VNU (Netherlands) 770,000 12,653 .60
Wolters Kluwer NV (Netherlands) 108118 12112 .58
News Corp. Ltd. (American Depositary Receipts) (Australia) 362000 8100
News Corp. Ltd., preferred shares (American Depositary Receipts) 181000 3507 .55
Nippon Television Network Corp. (Japan) 39000 11045 .53
Seven Network Ltd. (Australia) 3600000 10859 .52
CANAL+ (France) 37540 9225 .44
SOFTBANK CORP. (Japan) 49000 9070 .43
TeleWest Communications PLC (American Depositary Receipts)
(United Kingdom) /2/ 291000 8130 .39
Grupo Televisa, SA (American Depositary Receipts) (Mexico) /2/ 261000 8026 .38
Independent Newspapers, PLC (Ireland) 1,003,511 7,970 .38
Pearson PLC (United Kingdom) 540000 5790 .28
Elsevier NV (Netherlands) 340000 5287 .25
Sing Tao Holdings Ltd. (Hong Kong - Incorporated in Bermuda) 7,723,230 4,443 .21
John Fairfax Holdings Ltd. (Australia) 1280000 2829 .13
News International PLC, special dividend shares (United Kingdom) 580000 2788 .13
British Sky Broadcasting Group PLC (American Depositary
Receipts) (United Kingdom) 58,600 2,432 .12
AUDIOFINA (Luxembourg) 26,780 1,399 .07
BANKING - 7.26%
Australia and New Zealand Banking Group Ltd. (Australia) 6196216 28,481 1.36
ABN AMRO Holding NV (Netherlands) 491334 27,162 1.29
HSBC Holdings plc (United Kingdom) 991200 14,991 .71
Banco de Santander, SA (Spain) 240800 11,015
Banco de Santander, SA (American Depositary Receipts) 63200 2,860 .66
Allied Irish Banks, PLC (Ireland) 1800000 9,768 .47
Hanil Bank (South Korea) 804980 9,606 .46
Westpac Banking Corp. (Australia) 1900000 8,870 .42
Korea First Bank (South Korea) 850000 7,929 .38
Bank of Nova Scotia (Canada) 300000 7,237 .34
Deutsche Bank AG (Germany) 125,000 5,880 .28
Safra Republic Holdings SA (Luxembourg) 42000 5,418 .26
Banco Popular Espanol, SA (Spain) 30000 5,248 .25
Bank of Montreal (Canada) 220000 5,235 .25
Grupo Financiero Banamex Accival, SA de CV, Class B (Mexico) 1130397 2,561
Grupo Financiero Banamex Accival, SA de CV, Class L 92127 194 .13
AUTOMOBILES - 6.19%
Volvo AB, Class B (Sweden) 1,580,000 33,541 1.60
Bayerische Motoren Werke AG (Germany) 35000 19302
Bayerische Motoren Werke AG, preferred shares 10472 4118 1.12
Suzuki Motor Corp. (Japan) 1700000 21555 1.03
Toyota Motor Corp. (Japan) 813000 18585 .88
Daimler-Benz AG (Germany) 32,000 17,521 .83
Peugeot SA (France) 110,000 15,362 .73
MULTI-INDUSTRY - 5.28%
Orkla AS, Class A (Norway) 755000 37548 1.79
Chargeurs (France) 54700 15649 .75
Hutchison Whampoa Ltd. (Hong Kong) 2,000,000 12,849 .61
Industriforvaltnings AB Kinnevik, Class B (Sweden) 305000 8610
Industriforvaltnings AB Kinnevik, Class A 101600 2785 .54
Groupe Bruxelles Lambert SA (Belgium) 57000 7649 .37
Lend Lease Corp. Ltd. (Australia) 443522 6937 .33
Incentive AB, Class A (Sweden) 120000 6167 .29
Brierley Investments Ltd. (New Zealand) 5985000 5322
Brierley Investments Ltd., 9.00% convertible preferred 722000 608 .28
Swire Pacific Ltd., Class A (Hong Kong) 495000 4399 .21
Preussag AG (Germany) 9200 2353
Preussag AG, warrants, expire 2001 /2/ 540 21 .11
ELECTRICAL & ELECTRONICS - 4.65%
ASEA AB, Class A (Sweden) 130000 13460
ASEA AB, Class B 69300 7061 1.43
BBC Brown Boveri Ltd, Class A (Switzerland) 7822 9373
Siemens AG (Germany) 400,000 22474 1.07
Northern Telecom Ltd. (Canada) 350000 18987 .90
Nokia Corp., Class A (Finland) 180000 7870
Nokia Corp., Class K 150000 6542 .69
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 534600 11747
Telefonaktiebolaget LM Ericsson, Class B, 4.25% convertible .56
preferred 14,500 46
HEALTH & PERSONAL CARE - 4.60%
AB Astra, Class A (Sweden) 1,120,000 50,722 2.42
Ciba-Geigy Ltd. (Switzerland) 19540 21,551 1.03
Glaxo Wellcome plc (American Depositary Receipts)
(United Kingdom) 500000 13063 .62
Banyu Pharmaceutical Co., Ltd. (Japan) 495,000 6,368 .30
Hoya Corp. (Japan) 150,000 4,817 .23
FOOD & HOUSEHOLD PRODUCTS - 4.11%
Nestle SA (Switzerland) 20936 23644 1.13
Reckitt & Colman PLC (United Kingdom) 1776250 19051 .91
Groupe Danone (France) 110,000 16,130 .77
Cadbury Schweppes PLC (United Kingdom) 1,277,584 9,568 .46
PT Indofood Sukses Makmur (Indonesia) 2008500 9108 .43
Dalgety PLC (United Kingdom) 1,000,000 5,791 .27
Uni-Charm Corp. (Japan) 71,000 1,873 .09
Hazlewood Foods PLC (United Kingdom) 709800 1101 .05
UTILITIES: ELECTRIC & GAS - 3.86%
Korea Electric Power Corp. (American Depositary Receipts) (South Korea) 445000 11514
Korea Electric Power Corp. 188000 8323 .95
Hongkong Electric Holdings Ltd. (Hong Kong) 5875000 18834 .90
Centrais Eletricas Brasileiras SA, Class B, preferred nominative
(American Depositary Receipts) (Brazil) 948,000 12,087 .58
Iberdrola, SA (Spain) 915000 9305 .44
Consolidated Electric Power Asia Ltd. (Hong Kong -
Incorporated in Bermuda) 5000000 8596 .41
China Light & Power Co., Ltd. (Hong Kong) 1589800 7563 .36
Scottish Power PLC (United Kingdom) 600000 2954 .14
CESP-Companhia Energetica de Sao Paulo, preferred nominative
(American Depositary Receipts) (Brazil)/1/ /2/ 204096 1531 .08
CESP-Companhia Energetica de Sao Paulo, ordinary nominative 9,745,000 220
BEVERAGES & TOBACCO - 2.81%
Coca-Cola Amatil Ltd. (Australia) /1/ 2677442 29165 1.39
LVMH Moet Hennessy Louis Vuitton (France) 48,000 11,675 .56
Panamerican Beverages, Inc., Class A (Mexico) 190000 7980 .38
San Miguel Corp., Class B (Philippines) 1870000 6474 .31
South African Breweries Ltd. (South Africa) 120,000 3,666 .17
BUSINESS & PUBLIC SERVICES - 2.80%
Rentokil Group PLC (United Kingdom) 2,000,000 12,714 .61
Autopistas, Concesionaria Espanola, SA (Spain) 1,035,000 11,171 .53
Reuters Holdings PLC (United Kingdom) 932,000 10,845 .52
Brambles Industries Ltd. (Australia) 700,000 9,831 .47
Autopistas del Mare Nostrum, SA Concesionaria del Estado (Spain) 500,000 6,020 .29
NTT Data Communications Systems Corp. (Japan) 160 4,931 .23
Securicor Group PLC, Class A (United Kingdom) 165,000 3,160 .15
MACHINERY & ENGINEERING - 2.60%
Mannesmann AG (Germany) 95000 33012 1.57
Kawasaki Heavy Industries, Ltd. (Japan) 1400000 7321 .35
VA Technologie AG (Austria) /1/ 55100 7214 .34
Atlas Copco AB, Class A (Sweden) 186600 3475 .17
Valmet Corp. (Finland) 150000 2409 .12
Sidel SA (France) 4400 1086 .05
INSURANCE - 2.59%
Irish Life PLC (Ireland) 2636890 10556 .50
Internationale Nederlanden Groep NV, warrants, expire 2001
(Netherlands) /2/ 1500000 9181 .44
Royal Insurance Holdings PLC (United Kingdom) 1390000 9127 .43
Sun Alliance Group PLC (United Kingdom) 1450000 8948 .43
Munchener Ruckversicherungs-Gesellschaft (Germany) 4006 7101
Munchener Ruckversicherungs-Gesellschaft, warrants, expire 1998 /2/ 483 44 .34
Corporacion Mapfre, CIR, SA (Spain) 98652 4874 .23
National Mutual Asia Ltd. (Hong Kong) 5000000 4524 .22
METALS: NONFERROUS - 2.38%
Inco Ltd. (Canada) 420000 13702 .65
Western Mining Corp. Holdings Ltd. (Australia) 1400000 10602 .51
Alcan Aluminium Ltd. (Canada) 310000 10153 .48
Noranda Inc. (Canada) 400,000 8,642 .41
Teck Corp., Class B (Canada) 300000 6953 .33
MERCHANDISING - 2.15%
Carrefour, SA (France) 20,000 10,978 .52
Tesco PLC (United Kingdom) 2,043,081 9,551 .46
Cifra, SA de CV, Class C (Mexico) 5523600 8223 .39
Amway Japan Ltd. (American Depositary Receipts) (Japan) 300,000 7200 .34
Woolworths Ltd. (Australia) 2,533,042 6,327 .30
Ito-Yokado Co., Ltd. (Japan) 50000 2837 .14
BUILDING MATERIALS & COMPONENTS - 2.04%
Cemex, SA de CV, ordinary participation certificates (Mexico) 4635600 17315
Cemex, SA de CV, Class A 2321450 8765 1.24
Holderbank Financiere Glaris Ltd. (Switzerland) 21839 16792 .80
APPLIANCES & HOUSEHOLD DURABLES - 1.71%
Philips Electronics NV (Netherlands) 410000 14581 .70
Sony Corp. (Japan) 224000 14242 .68
AB Electrolux, Class B (Sweden) 137,900 6,975 .33
MISCELLANEOUS MATERIALS & COMMODITIES - 1.62%
Compagnie de Saint-Gobain (France) 161879 20723 .99
English China Clays PLC (United Kingdom) 3168750 13339 .63
INDUSTRIAL COMPONENTS - 1.47%
Compagnie Generale des Etablissements Michelin, Class B (France) 573000 28952
Compagnie Generale des Etablissements Michelin, 2.50% 1.44
convertible preferred 23200 1312
Orbital Engine Corp. Ltd. (Australia) /2/ 611040 605 .03
CHEMICALS - 1.45%
AGA AB, Class B (Sweden) 800,000 13,705
AGA AB, Class A 220,000 3,638 .83
L'Air Liquide (France) 75229 13118 .62
ENERGY SOURCES - 1.37%
ENI SpA (American Depositary Receipts) (Italy) 280000 13160 .63
TOTAL, Class B (France) 156372 11334 .54
Engen Ltd. (South Africa) 770000 4342 .20
RECREATION & OTHER CONSUMER PRODUCTS - 1.32%
THORN EMI PLC (United Kingdom) 468,712 13,038 .62
Fuji Photo Film Co., Ltd. (Japan) 210,000 6,530 .31
Swedish Match AB (Sweden) 1,580,000 5,108 .24
PolyGram NV (New York Registered Shares) (Netherlands) 52,500 3,078 .15
ELECTRONIC COMPONENTS - 1.19%
Kyocera Corp. (Japan) 199000 13629 .65
Rohm Co., Ltd. (Japan) 100000 6256 .30
Murata Manufacturing Co., Ltd. (Japan) 140000 5131 .24
AEROSPACE & MILITARY TECHNOLOGY - 0.96%
Bombardier Inc., Class B (Canada) 1440000 20128 .96
TRANSPORTATION: RAIL & ROAD - 0.94%
TNT Ltd. (Australia) /2/ 5248007 6,324
TNT Ltd., 8.00% convertible preferred 4273400 6,002 .59
Canadian National Railway Co. (Canada) 400,000 7,400 .35
LEISURE & TOURISM - 0.59%
Mandarin Oriental International Ltd. (Singapore) 6911218 9676 .46
Rank Organisation PLC (United Kingdom) 350,000 2,776 .13
TRANSPORTATION: AIRLINES - 0.59%
British Airways PLC (American Depositary Receipts)
(United Kingdom) 63750 5530 .50
British Airways PLC 560000 4867
Air New Zealand Ltd., Class B (New Zealand) 660,000 1,994 .09
GOLD MINES - 0.50%
Ashanti Goldfields Co. Ltd. (Global Depositary Receipts) (Ghana) 500600 10575 .50
REAL ESTATE - 0.49%
Sun Hung Kai Properties Ltd. (Hong Kong) 1000000 10212 .49
TRANSPORTATION: SHIPPING - 0.47%
Stolt-Nielsen SA, Class B (American Depositary Receipts)
(Multi-National) 264000 5,313 .25
Nippon Yusen KK (Japan) 790000 4,635 .22
DATA PROCESSING & REPRODUCTION - 0.40%
Olivetti SpA (Italy) 13300000 8341 .40
METALS: STEEL - 0.38%
Pohang Iron & Steel Co., Ltd. (American Depositary Receipts)
(South Korea) 185000 4,879 .23
Svenskt Stal AB, Class A (Sweden) 240000 3075 .15
FOREST PRODUCTS & PAPER - 0.35%
UPM-Kymmene Corp. (Finland) 385000 7421 .35
ELECTRONIC INSTRUMENTS - 0.22%
Barco NV (Belgium) 30000 4,658 .22
WHOLESALE & INTERNATIONAL TRADE - 0.21%
ITOCHU Corp. (Japan) 600000 4,309 .21
FINANCIAL SERVICES - 0.20%
Acom Co., Ltd. (Japan) 100000 4118 .20
MISCELLANEOUS
Other stocks in initial period of acquisition 65435 3.12
------------- -----------
TOTAL STOCKS (cost: $1,593,786,000) 1910876 91.04
------------- -----------
Principal
Amount
Convertible Debentures (000)
- --------------------------------------------------------------------- ------------- ------------- ----------
FOREST PRODUCTS & PAPER - 0.20%
UPM-Kymmene Corp. 8.25% 2043 FM17,000 4087 .20
INSURANCE - 0.02%
Corporacion Mapfre, SA 8.50% 1999 /3/ Pta58,030 452 .02
------------- -----------
TOTAL CONVERTIBLE DEBENTURES (cost: $4,766,000) 4,539 .22
------------- -----------
TOTAL EQUITY-TYPE SECURITIES (cost: $1,598,552,000) 1,915,415 91.26
------------- --------
Principal Market Percent
Amount Value of Net
Bonds (000) (000) Assets
- --------------------------------------------------------------------- ------------- ------------- --------
MULTI-INDUSTRY - 0.01%
Preussag AG 5.75% 2001 DM180 118 .01
------------- -----------
TOTAL BONDS (cost: $117,000) 118 .01
------------- --------
Principal Market Percent
Amount Value of Net
Short-Term Securities (000) (000) Assets
- --------------------------------------------------------------------- ------------- ------------- -------
CORPORATE SHORT-TERM NOTES - 8.91%
Daimler-Benz North America Corp. 5.27%-5.32%
due 6/17-6/28/96 $31,300 31,181 1.48
Sony Capital Corp. 5.27%-5.29% due 6/18-7/19/96 /1/ 31,300 31,123 1.48
SmithKline Beecham Corp. 5.30%-5.32% due 6/5-6/19/96 28,666 28,613 1.36
National Australia Funding (Delaware) Inc. 5.27%-5.28%
due 6/17-7/22/96 24,050 23,958 1.14
AT&T Corp. 5.28% due 6/12/96 21600 21562 1.03
Siemens Corp. 5.27%-5.29% due 6/25-7/8/96 21,300 21,203 1.01
Coca-Cola Co. 5.26%-5.28% due 6/5-6/11/96 16,200 16,179 .77
CPC International Inc. 5.27%-5.30% due 7/23-8/15/96 /1/ 13,600 13,480 .64
FEDERAL AGENCY DISCOUNT NOTES - 0.19%
Federal Home Loan Mortgage Corp. 5.04%-5.20%
due 6/3-7/11/96 3900 3896 .19
------------- ----------
TOTAL SHORT-TERM SECURITIES (cost: $191,196,000) 191,195 9.10
------------- ----------
TOTAL INVESTMENT SECURITIES (cost: $1,789,865,000) 2,106,728 100.37
Excess of payables over money market account, cash and receivables 7,801 .37
------------- -------------
NET ASSETS $2,098,927 100.00%
======== ========
/1/ Purchased in a private placement transaction; resale to the public
may require registration or sale only to qualified institutional buyers.
/2/ Non-income-producing securities.
/3/ Valued under procedures established by the Board of Trustees.
See Notes to Financial Statements
</TABLE>
Equity-type securities appearing in the
portfolio since November 30, 1995
Acom
Alcan Aluminium
Allied Irish Banks
Ashanti Goldfields
Autopistas del Mare Nostrum
Bank of Nova Scotia
Barco
Brambles Industries
Carrefour
Consolidated Electric Power Asia
Engen
ENI
Fuji Photo Film
Hanil Bank
Hoya
HSBC Holdings
Incentive
Kawasaki Heavy Industries
Korea First Bank
Kyocera
Murata Manufacturing
National Mutual Asia
NetCom Systems
Nippon Television Network
Northern Telecom
NTT Data Communication Systems
Olivetti
Panamerican Beverages
Pohang Iron & Steel
Rentokil Group
Rohm
Royal Insurance Holdings
San Miguel
Seven Network
Sidel
SOFTBANK
South African Breweries
Stolt-Nielsen
Sun Alliance Group
Swedish Match
Telefonica de Sao Paulo
Uni-Charm
United News & Media
UPM-Kymmene
Valmet
Equity-type securities eliminated from the
portfolio since November 30, 1995
Akzo
Bangkok Bank
Cable and Wireless
Carter Holt Harvey
Cathay Pacific Airways
Chain Store Okuwa
Cordiant
CS Holding Group
DSM
Eurotunnel
Fletcher Challenge
Forte
GEA
GIO Australia Holdings
Hitachi
Johnson Electric Holdings
Kansallis-Yhtymae
Magna International
Mitsubishi
Nintendo
PT Bank Internasional Indonesia
PartnerRe Holdings
Petrofina
Philippine National Bank
Pilkington
Pirelli
Poliet
Renault
Repola
Rogers Communications
Sandvik
Scitex
Singapore Airlines
Sumitomo Chemical
Svenska Handelsbanken Group
Tokyo Broadcasting System
Tolmex
Tubos de Acero de Mexico
YPF
<TABLE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1996
Stocks 87.70%
Cash & Equivalents 12.30%
Percent
of Net
Largest Individual Equity Holdings Assets
AT&T 1.93%
Phillips Petroleum 1.49
Walt Disney 1.31
WMX Technologies 1.25
Boeing 1.24
Aluminum Co. of America 1.21
Potash Corp. of Saskatchewan 1.20
Merck & Co. 1.17
Philip Morris Companies 1.16
Bowater 1.14
<S> <C> <C> <C>
Number Market Percent
of Value of Net
Stocks (common and preferred) Shares (000) Assets
Energy Sources - 7.47%
Phillips Petroleum Co. 1650000 $68,475 1.49%
Atlantic Richfield Co. 420000 50242 1.09
Diamond Shamrock, Inc. 1138200 37418 .82
Amoco Corp. 440000 31900 .70
Unocal Corp. 735000 23888 .52
Royal Dutch Petroleum Co. (New York Registered Shares)
(Netherlands) 145000 21750 .47
Valero Energy Corp. 785000 21588 .47
Texaco Inc. 235,000 19,681 .43
Exxon Corp. 200000 16950 .37
Chevron Corp. 250000 14938 .33
TOTAL, Class B (American Depositary Receipts) (France) 400454 14416 .31
Tosco Corp. 290000 14355 .31
Murphy Oil Corp. 163200 7201 .16
Health & Personal Care - 6.94%
Merck & Co., Inc. 830,000 53639 1.17
Schering-Plough Corp. 800000 46900 1.02
Pfizer Inc 600000 42450 .93
American Home Products Corp. 660000 35310 .77
Warner-Lambert Co. 520000 29120 .63
Abbott Laboratories 500,000 21,562 .47
Bristol-Myers Squibb Co. 252000 21515 .47
Kimberly-Clark Corp. 270,000 19,676 .43
Eli Lilly and Co. 280000 17,990 .39
Johnson & Johnson 150,000 14,606 .32
Tambrands Inc. 150,000 6,919 .15
McKesson Corp. 125000 5828 .13
Bausch & Lomb Inc. 67400 2898 .06
Banking - 6.56%
First Union Corp. 720000 44010 .96
Banc One Corp. 732875 27116 .59
Wells Fargo & Co. 100000 24100 .52
BankAmerica Corp. 260000 19565 .43
KeyCorp 500000 19375 .42
PNC Bank Corp. 636000 19319 .42
SunTrust Banks, Inc. 450,000 16425 .36
Boatmen's Bancshares, Inc. 400000 16,175 .35
National City Corp. 400000 14,250 .31
Chase Manhattan Corp. 200000 14000 .31
Fleet Financial Group, Inc. 300000 13238 .29
Northern Trust Corp. 200000 10950 .24
First Chicago NBD Corp. 250,000 10906 .24
Norwest Corp. 300000 10462 .23
Bank of New York Co., Inc. 200,000 10375 .23
CoreStates Financial Corp 250000 9,844 .21
J.P. Morgan & Co. Inc. 100000 8,688 .19
Citicorp 100,000 8400 .18
Bankers Trust New York Corp. 50000 3,756 .08
Business & Public Services - 5.44%
WMX Technologies, Inc. 1630000 57458 1.25
Dun & Bradstreet Corp. 780000 49822 1.09
General Motors Corp., Class E 549,500 30,978 .67
Browning-Ferris Industries, Inc. 900000 27450 .60
Alexander & Baldwin, Inc. 1,020,000 26,137 .57
Omnicom Group Inc. 340,000 14,833 .32
Federal Express Corp. /1/ 190000 14559 .32
Manpower Inc. 300,000 11,550 .25
Pitney Bowes Inc. 175000 8684 .19
Ecolab Inc. 250000 8125 .18
Broadcasting & Publishing - 5.31%
Viacom Inc., Class B /1/ 1085000 45977 1.00
Time Warner Inc. 917,000 37,024 .81
News Corp. Ltd. (American Depositary Receipts) (Australia) 1100000 24613
News Corp. Ltd., preferred shares (American Depositary Receipts) 400000 7750 .70
E.W. Scripps Co., Class A 630000 28035 .61
Tele-Communications, Inc., Series A, TCI Group /1/ 1077100 20330 .44
Gannett Co., Inc. 220000 15345 .33
Times Mirror Co., Series A 300120 13093 .29
Tele-Communications, Inc., Series A, Liberty
Media Group /1/ 393750 11813 .26
U S WEST Media Group /1/ 588200 11102 .24
Tribune Co. 140000 10377 .23
New York Times Co., Class A 300000 9862 .21
Cox Communications, Inc., Class A /1/ 196892 4430 .10
Chris-Craft Industries, Inc. /1/ 101821 4162 .09
Telecommunications- 5.11%
AT&T Corp. 1420000 88572 1.93
U S WEST Communications, Inc. 850,000 27,731 .60
Ameritech Corp. 475000 26838 .58
MCI Communications Corp. 859,800 25,042 .55
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts)(Mexico) 575000 18975 .41
Pacific Telesis Group 550,000 18,356 .40
AirTouch Communications /1/ 449,621 14,332 .31
ALLTEL Corp. 300000 9450 .21
SBC Communications Inc. 100000 4937 .11
360/0/ Communications Co. /1/ 23333 540 .01
Forest Products & Paper - 3.80%
Bowater Inc. 1325000 52172 1.14
Union Camp Corp. 750000 39469 .86
Rayonier Inc. 525000 19687 .43
International Paper Co. 450000 17944 .39
Weyerhaeuser Co. 350000 15881 .34
Georgia-Pacific Corp. 150000 10837 .24
James River Corp. of Virginia 300000 7463 .16
Westvaco Corp. 187500 6000 .13
Louisiana-Pacific Corp. 200000 4925 .11
Chemicals - 3.48%
Praxair, Inc. 600000 24375 .53
E.I. du Pont de Nemours and Co. 275,000 21,931 .48
Eastman Chemical Co. 325000 21775 .47
Monsanto Co. 134,600 20,442 .44
Dow Chemical Co. 180000 15053 .33
Mallinckrodt Group, Inc. 329600 12401 .27
Great Lakes Chemical Corp. 190000 12255 .27
Imperial Chemical Industries PLC (American
Depositary Receipts) (United Kingdom) 200000 10625 .23
PPG Industries, Inc. 140000 7245 .16
Engelhard Corp. 284400 6968 .15
Betz Laboratories, Inc. 150000 6881 .15
Beverages & Tobacco - 3.35%
Philip Morris Companies Inc. 535,000 53,166 1.16
Seagram Co. Ltd. (Canada) 1450000 50206 1.09
PepsiCo, Inc. 870000 28927 .63
Anheuser-Busch Companies, Inc. 300,000 21,375 .47
Machinery & Engineering - 3.32%
Caterpillar Inc. 650000 42656 .93
Parker Hannifin Corp. 950000 38712 .84
Deere & Co. 716600 29828 .65
Ingersoll-Rand Co. 350000 14744 .32
Crompton & Knowles Corp. 700000 12338 .27
Case Corp. 150000 7519 .16
Greenfield Capital Trust, 6.00% convertible preferred /2/ 118000 6608 .15
Merchandising - 3.04%
Wal-Mart Stores, Inc. 1,800,000 46,575 1.02
Giant Food Inc., Class A 450,000 15,525 .34
Walgreen Co. 480,000 15,300 .33
Sears, Roebuck and Co. 300000 15263 .33
May Department Stores Co. 300000 14212 .31
J.C. Penney Co., Inc. 250000 12969 .28
Mercantile Stores Co., Inc. 200000 12900 .28
Gap, Inc. 200000 6725 .15
Aerospace & Military Technology - 2.96%
Boeing Co. 665000 56691 1.24
General Motors Corp., Class H 370000 22478 .49
Litton Industries, Inc. /1/ 461200 21388 .47
Sundstrand Corp. 500000 17625 .38
United Technologies Corp. 160,000 17,500 .38
Insurance - 2.79%
SAFECO Corp. 1028800 34658 .76
General Re Corp. 155600 22717 .50
Allstate Corp. 400000 16900 .37
American General Corp. 420000 14910 .32
Liberty Corp. 350000 11200 .24
AMBAC Inc. 129900 6738 .15
St. Paul Companies, Inc. 120000 6345 .14
Arthur J. Gallagher & Co. 188100 6043 .13
TIG Holdings, Inc. 150000 4500 .10
American International Group, Inc. 41250 3888 .08
Food & Household Products - 2.61%
Unilever NV (New York Registered Shares) (Netherlands) 250000 33719 .73
CPC International Inc. 300000 20738 .45
ConAgra, Inc. 360000 15345 .34
Archer Daniels Midland Co. 700000 13650 .30
H.J. Heinz Co. 375000 12469 .27
General Mills, Inc. 210200 12060 .26
Colgate-Palmolive Co. 150000 11812 .26
Multi-Industry - 2.42%
Minnesota Mining and Manufacturing Co. 638500 43578 .95
Tenneco Inc. 555000 29831 .65
Textron Inc. 240000 20340 .44
AlliedSignal Inc. 200000 10950 .24
Harsco Corp. 100000 6487 .14
Transportation: Rail & Road - 2.41%
Conrail, Inc. 460,000 32,315 .70
Union Pacific Corp. 453200 31781 .69
Southern Pacific Rail Corp. /1/ 1,050,000 25,594 .56
Norfolk Southern Corp. 245,000 21,131 .46
Industrial Components - 2.06%
Goodyear Tire & Rubber Co. 595,000 30,048 .66
Johnson Controls, Inc. 310,900 21,685 .47
Dana Corp. 631,800 21,165 .46
Rockwell International Corp. 250000 14594 .32
TRW Inc. 75000 7069 .15
Data Processing & Reproduction - 1.96%
Xerox Corp. 170,000 26,754 .58
Oracle Corp. /1/ 589,650 19,532 .43
Digital Equipment Corp. /1/ 300,000 15,638 .34
Silicon Graphics, Inc. /1/ 400,000 11,000 .24
International Business Machines Corp. 96,600 10,312 .22
Adobe Systems Inc. 100,000 3,712 .08
Novell, Inc. /1/ 212,000 3,021 .07
Leisure & Tourism - 1.67%
Walt Disney Co. 989932 60138 1.31
Marriott International, Inc. 200000 9500 .21
Host Marriott Corp. /1/ 530200 6959 .15
Metals: Nonferrous - 1.60%
Aluminum Co. of America 900000 55462 1.21
Inco Ltd. (Canada) 280000 9135 .20
Alumax Inc. /1/ 160000 5320 .12
Phelps Dodge Corp. 50000 3425 .07
Miscellaneous Materials & Commodities - 1.43%
Potash Corp. of Saskatchewan Inc. (Canada) 830000 55195 1.20
Cleveland-Cliffs Inc 180000 7223 .16
TRINOVA Corp. 100000 3300 .07
Financial Services - 1.35%
Beneficial Corp. 400,000 23,300 .51
Household International, Inc. 300000 20775 .45
American Express Co. 170,000 7,778 .17
ADVANTA Corp., Class A 100,000 5,650 .12
Capital One Financial Corp. 150000 4556 .10
Energy Equipment - 1.21%
Western Atlas Inc. /1/ 346800 21241 .46
Schlumberger Ltd. (Netherlands Antilles) 170000 14174 .31
Baker Hughes Inc. 400000 12550 .27
Cooper Industries, Inc. 179802 7664 .17
Recreation & Other Consumer Products - 1.16%
Eastman Kodak Co. 220000 16362 .36
Stanley Works 200000 12125 .27
American Greetings Corp., Class A 400000 10850 .24
Duracell International Inc. 150000 6994 .15
Polaroid Corp. 150000 6750 .14
Automobiles - 1.04%
General Motors Corp. 500000 27563 .60
Ford Motor Co., Class A 550000 20075 .44
Utilities: Electric & Gas - 1.03%
Union Electric Co. 450000 17719 .39
Pacific Gas and Electric Co. 500000 11625 .25
Consolidated Edison Co. of New York, Inc. 350000 9756 .21
Edison International 250000 4125 .09
General Public Utilities Corp. 120000 4020 .09
Electrical & Electronics - 0.96%
General Electric Co. 270000 22343 .49
Nokia Corp., Class A (American Depositary Receipts) (Finland) 500000 21750 .47
Electronic Components - 0.90%
Intel Corp. 400,000 30,200 .66
Texas Instruments Inc. 200,000 11,250 .24
Transportation: Airlines - 0.47%
AMR Corp. /1/ 175000 16516 .36
Delta Air Lines, Inc. 60000 4972 .11
Appliances & Household Durables - 0.46%
Corning Inc. 470000 17977 .39
LADD Furniture, Inc. 258400 2972 .07
Textiles & Apparel - 0.30%
VF Corp. 230,000 14,001 .30
Miscellaneous
Other stocks in initial period of acquisition 141680 3.09
- -
TOTAL STOCKS (cost: $3,003,471,000) 4,025,209 87.70
- -
Short-Term Securities
Corporate Short-Term Notes - 11.52%
Weyerhaeuser Co. 5.27%-5.29% due 6/3-7/26/96 56500 56259 1.23
Xerox Corp. 5.29%-5.30% due 6/10-6/18/96 41100 41035 .89
CIT Group Holdings, Inc. 5.28%-5.29% due 6/25-7/9/96 38050 37855 .82
Raytheon Co. 5.28%-5.29% due 6/4-6/7/96 37645 37619 .82
Lucent Technologies Inc. 5.26%-5.27% due 7/25-8/8/96 37000 36667 .80
Pitney Bowes Inc. 5.27% due 7/10-7/16/96 35355 35139 .77
John Deere Capital Corp. 5.29% due 6/11/96 30000 29952 .65
Beneficial Corp. 5.30% due 6/19/96 29200 29118 .63
Hershey Foods Corp. 5.25%-5.29% due 6/6-7/22/96 27900 27764 .61
Ford Motor Credit Co. 5.29% due 6/6/96 27500 27476 .60
IBM Credit Corp. 5.29% due 6/5-6/12/96 25955 25928 .57
PepsiCo, Inc. 5.25% due 6/13/96 25700 25654 .56
Kellogg Co. 5.26% due 7/24/96 24000 23811 .52
Sara Lee Corp. 5.23%-5.24% due 6/6-6/26/96 22200 22148 .48
American Express Credit Corp. 5.27%-5.29% due 6/14-7/16/96 19100 19023 .41
International Lease Finance Corp. 5.30% due 7/17/96 19100 18968 .41
J.C. Penney Funding Corp. 5.27%-5.28% due 7/19-7/29/96 18000 17860 .39
Southwestern Bell Telephone Co. 5.27% due 7/8/96 16700 16607 .36
Federal Agency Discount Notes - 0.31%
Federal National Mortgage Assn. 5.14%-5.21% due 6/4-8/23/96 18900 18821 .41
Federal Home Loan Mortgage Corp. 5.04% due 6/7/96 14200 14186 .31
- -
TOTAL SHORT-TERM SECURITIES (cost: $561,901,000) 561890 12.24
- -
TOTAL INVESTMENT SECURITIES (cost: $3,565,372,000) 4587099 99.94
Excess of money market account, cash
and receivables over payables 2,798 .06
- -
NET ASSETS $4,589,897 100.00%
=======================
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction;
resale to the public may require registration or
sale only to qualifed institutional buyers.
See Notes to Financial Statements
</TABLE>
Equity-type securities appearing in the portfolio
since November 30, 1995
Adobe Systems
Alexander & Baldwin
Anheuser-Busch Companies
Baker Hughes
Bowater
Case
Chris-Craft Industries
Colgate-Palmolive
Diamond Shamrock
Digital Equipment
Duracell International
Edison International
First Chicago NBD
Greenfield Capital Trust
Mallinckrodt Group
Manpower
Mercantile Stores
National City
Nokia
Oracle
Silicon Graphics
Southern Pacific Rail
Unilever
Equity-type securities eliminated from the portfolio
since November 30, 1995
American Brands
Apple Computer
Capital Cities/ABC
CIGNA
Coltec Industries
Comerica
Cooper Cameron
Detroit Edison
Entergy
Federal Paper Board
First Fidelity Bancorporation
Hanson
Long Island Lighting
Melville
Micron Technology
Motorola
Pharmacia & Upjohn
Seagate Technology
<TABLE>
Asset Allocation Fund Percent
Investment Portfolio May 31, 1996 of Net
Unaudited Assets
- ---------------------------------------------------- ----------
<S> <C>
Equity-Type Securities 63.62%
Cash & Equivalents 12.96
U.S. Government Bonds 11.70
Corporate Bonds 11.49
Non-U.S. Government Bonds .23
LARGEST INDIVIDUAL EQUITY HOLDINGS
Tenneco 1.88%
Rockwell International 1.81
Warner-Lambert 1.68
Pfizer 1.62
Union Pacific 1.61
Chevron 1.52
J.C. Penney 1.50
PepsiCo 1.39
Wal-Mart Stores 1.36
Royal Dutch Petroleum 1.35
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- ---------------------------------------------------- ---------- ---------- ----------
Energy Sources- 7.53%
Chevron Corp. 255,000 15,236 1.52%
Royal Dutch Petroleum Co. (New York Registered
Shares) (Netherlands) 90,000 13,500 1.35
Texaco Inc. 150,000 12,563 1.26
Phillips Petroleum Co. 200,000 8,300 .83
Atlantic Richfield Co. 60,000 7,177 .72
Kerr-McGee Corp. 100,000 5,875 .59
Diamond Shamrock, Inc. 175,000 5,753 .57
Amoco Corp. 60,000 4,350 .43
Unocal Corp. 80,000 2,600 .26
Banking- 6.72%
NationsBank Corp. 155000 12,574 1.26
Citicorp 140,000 11,760 1.17
First Union Corp. 174,500 10,666 1.06
Fleet Financial Group, Inc. 120,000 5,295 .53
H.F. Ahmanson & Co. 200,000 5,150 .51
CoreStates Financial Corp 125000 4,922 .49
Jefferson BankShares, Inc. 211800 4,660 .47
PNC Bank Corp. 135000 4,101 .41
BankAmerica Corp. 50000 3,763 .38
KeyCorp 80000 3,100 .31
Comerica Inc. 30000 1,312 .13
Health & Personal Care- 6.54%
Warner-Lambert Co. 300000 16,800 1.68
Pfizer Inc 230000 16,272 1.62
SmithKline Beecham PLC (American Depositary
Receipts) (United Kingdom) 150000 7,650 .76
Bristol-Myers Squibb Co. 70,000 5,976 .60
American Home Products Corp. 110000 5,885 .59
Tambrands Inc. 110,000 5,074 .51
Kimberly-Clark Corp. 60,000 4,373 .44
Bausch & Lomb Inc. 80000 3,440 .34
Merchandising- 6.12%
J.C. Penney Co., Inc. 290000 15,044 1.50
Wal-Mart Stores, Inc. 525000 13,584 1.36
Walgreen Co. 250000 7,969 .80
May Department Stores Co. 125000 5,922 .59
Gap, Inc. 140000 4,708 .47
Circuit City Stores, Inc. 130000 4,241 .42
Hancock Fabrics, Inc. 300000 3,412 .34
Mercantile Stores Co., Inc. 52400 3,380 .34
Sears, Roebuck and Co. 60000 3,052 .30
Transportation: Rail & Road- 3.65%
Union Pacific Corp. 230000 16,129 1.61
CSX Corp. 240000 11,880 1.19
Norfolk Southern Corp. 50000 4,312 .43
Conrail, Inc. 60000 4,215 .42
Multi-Industry- 3.38%
Tenneco Inc. 350000 18,813 1.88
Minnesota Mining and Manufacturing Co. 145000 9,896 .99
Textron Inc. 60,000 5,085 .51
Food & Household Products- 3.13%
McCormick & Co. 400000 9,100 .91
General Mills, Inc. 100000 5,737 .57
H.J. Heinz Co. 150000 4,987 .50
Colgate-Palmolive Co. 60000 4,725 .47
Archer Daniels Midland Co. 225000 4,388 .44
Ralston Purina Co. 40000 2,450 .24
Industrial Components- 3.00%
Rockwell International Corp. 310000 18,096 1.81
Echlin Inc. 200000 6,875 .69
Dana Corp. 150000 5,025 .50
Recreation & Other Consumer Products- 2.55%
Eastman Kodak Co. 110000 8,181 .82
American Greetings Corp., Class A 300000 8,137 .81
Duracell International Inc. 120000 5,595 .56
Stanley Works 60000 3,638 .36
Beverages & Tobacco- 2.55%
PepsiCo, Inc. 420000 13,965 1.39
Seagram Co. Ltd. (Canada) 230000 7,964 .80
Anheuser-Busch Companies, Inc. 50000 3,562 .36
Insurance- 2.54%
CIGNA Corp. 100000 11,487 1.15
American General Corp. 176700 6,273 .63
SAFECO Corp. 150000 5,053 .50
AMBAC Inc. 50000 2,594 .26
Forest Products & Paper- 2.32%
Georgia-Pacific Corp. 100000 7,225 .72
Union Camp Corp. 100000 5,262 .53
Weyerhaeuser Co. 100000 4,538 .45
Rayonier Inc. 100000 3,750 .37
Louisiana-Pacific Corp. 100000 2,463 .25
Chemicals- 2.13%
E.I. du Pont de Nemours and Co. 140000 11,165 1.11
Great Lakes Chemical Corp. 60000 3,870 .39
Air Products and Chemicals, Inc. 43400 2,582 .26
Eastman Chemical Co. 30000 2,010 .20
Armor All Products Corp. 108000 1,674 .17
Aerospace & Military Technology- 1.72%
General Motors Corp., Class H 200000 12,150 1.21
Boeing Co. 60000 5,115 .51
Machinery & Engineering- 1.49%
Deere & Co. 180000 7,492 .75
Crompton & Knowles Corp. 300000 5,288 .53
Greenfield Capital Trust, 6.00% convertible preferred /1/ 39000 2,184 .21
Electrical & Electronics- 1.18%
Nokia Corp., Class A (American Depository
Receipts) (Finland) 170000 7,395 .74
Hubbell Inc., Class B 63000 4,402 .44
Business & Public Services- 1.02%
Alexander & Baldwin, Inc. 150000 3,844 .38
H&R Block, Inc. 100000 3,488 .35
Dun & Bradstreet Corp. 45000 2,874 .29
Metals: Nonferrous- 0.86%
Aluminum Co. of America 140000 8,628 .86
Telecommunications- 0.81%
Pacific Telesis Group 150000 5,006 .50
AT&T Corp. 50,000 3,119 .31
Data Processing & Reproduction- 0.69%
Adobe Systems Inc. 100000 3,713 .37
International Business Machines Corp. 30000 3,202 .32
Utilities: Electric & Gas- 0.63%
Long Island Lighting Co. 195000 3,339 .33
General Public Utilities Corp. 90000 3,015 .30
Energy Equipment- 0.59%
Cooper Industries, Inc. 71921 3,066 .31
Baker Hughes Inc. 89700 2,814 .28
Automobiles- 0.55%
General Motors Corp. 100000 5,513 .55
Broadcasting & Publishing- 0.41%
Time Warner Inc., preferred equity redemption
cumulative stock 55000 2,090
Time Warner Inc., 10.25% cumulative exchangeable
preferred, Series K+B128 2000 2,000 .41
----------------------
TOTAL STOCKS (cost: $495,693,000) 621877 62.11
----------------------
Principal
Amount
Convertible Debentures (000)
- ---------------------------------------------------- ---------- ---------- ----------
Industrials & Services- 1.09%
Turner Broadcasting System, Inc. 0% 2007 /1/ $10,000 4,687 .47
Hanson America Inc. 2.39% 2001 /1/ 5,000 4,269 .43
U S WEST Communications, Inc. 0% 2011 3,000 1,039 .10
Time Warner Inc. 0% 2012 2,500 909 .09
---------- ----------
TOTAL CONVERTIBLE DEBENTURES (cost: $9,966,000) 10904 1.09
---------- ----------
MISCELLANEOUS
Other equity-type securities in initial period of
acquisition (cost:$6,466,000) 4,256 .42
---------- ----------
TOTAL EQUITY-TYPE SECURITIES (cost: $512,125,000) 637,037 63.62
---------- ----------
Bonds & Notes
- -----------------------------------------------
U.S. Treasury Obligations- 8.59%
10.375% 2012 19000 23,854 2.38
5.75% 1997 12000 11,951 1.19
6.50% 1996 10000 10,038 1.00
8.75% 1997 6000 6,209 .62
7.25% 2004 5500 5,638 .56
8.75% 2008 5000 5,513 .55
9.25% 1998 5000 5,297 .53
6.50% 2005 5000 4,879 .49
8.75% 2000 3000 3,232 .32
7.125% 2000 3000 3,054 .31
8.875% 1999 2500 2,650 .27
10.375% 2009 2,000 2,428 .24
11.75% 2010 500 654 .07
10.75% 2003 500 607 .06
Industrials- 5.52%
Container Corp. of America 9.75% 2003 6500 6,468 .65
Oryx Energy Co. 9.50% 1999 3,000 3,147
Oryx Energy Co. 10.00% 1999 1,000 1,059 .42
Time Warner Inc. 9.125% 2013 4000 4,145 .41
Mobil Corp. 8.00% 2032 4000 4,007 .40
Marvel Holdings Inc., Series B, 0% 1998 4,800 3,792 .38
Inco Ltd. 9.60% 2022 2000 2,078
Inco Ltd. 9.875% 2019 1,500 1,619 .37
Pohang Iron & Steel Co., Ltd. 7.50% 2002 3,000 3,002 .30
General Motors Corp. 8.80% 2021 2,500 2,773 .28
USX Corp. 9.125% 2013 2,500 2,683 .27
Dayton Hudson Corp. 8.50% 2022 2500 2,486 .25
360/0/ Communications Co. 7.50% 2006 2500 2,351 .23
OXYMAR 7.50% 2016 /1/ 2500 2,247 .22
News America Holdings Inc. 10.125% 2012 2,000 2,239 .22
Parker & Parsley Petroleum Co. 8.25% 2007 2000 2,066 .21
Acme Metals Inc. 12.50% 2002 2,000 2,045 .20
Tele-Communications, Inc. 9.25% 2023 2000 1,960 .20
TCI Communications, Inc. 8.75% 2015 2000 1,936 .19
CenCall Communications Corp. 0%/10.125% 2004 /2/ 3000 1,868 .19
Kaiser Aluminum Corp. 12.75% 2003 750 810 .08
Loehmann's, Inc. 11.875% 2003 500 515 .05
Financial- 3.14%
Capital One Bank 6.61% 1999 7500 7,391 .74
General Motors Acceptance Corp. 8.875% 2010 3235 3,571
General Motors Acceptance Corp. 9.625% 2001 2000 2,214 .58
New York Life Insurance Co. 7.50% 2023 /1/ 2500 2,303 .23
General Electric Capital Corp. 8.875% 2009 2000 2,274 .23
Terra Nova (Bermuda) Holdings Ltd. 10.75% 2005 2000 2,230 .22
American Re Corp. 10.875% 2004 1500 1,633 .16
B.F. Saul Real Estate Investment Trust 11.625% 2002 1500 1,545 .15
Security Capital Industrial Trust 7.95% 2008 1500 1,476 .15
Shopping Center Associates 6.75% 2004 /1/ 1500 1,401 .14
Irvine Co. 7.46% 2006 /1/ /3/ 1500 1,391 .14
Metropolitan Life Insurance Co. 7.45% 2023 /1/ 1500 1,349 .13
National Westminster Bancorp Inc. 9.45% 2001 1000 1,097 .11
The Equitable Life Assurance Society of the 1000 961 .10
United States 7.70% 2015 /1/
Golden West Financial Corp. 10.25% 2000 500 560 .06
Collateralized Mortgage Obligations
(Privately Originated) /4/- 2.20%
Continental Airlines, Inc., 1996-A, 6.94% 2013 /1/ 4000 3,805
Continental Airlines, Inc., 1996-2C, 10.22% 2014 /1/ 2250 2,306 .61
United Air Lines, Inc., 1996-A2, 7.87% 2019 2500 2,356
United Air Lines, Inc., 1995-A1, 9.02% 2012 1443 1,516 .39
Delta Air Lines, Inc., 1993-A2, 10.50% 2016 2000 2,358
Delta Air Lines, Inc., 1992-A2, 9.20% 2014 1000 1,085 .34
Airplanes Pass Through Trust, Class C, 8.15% 2019 3000 2,959 .30
Jet Equipment Trust, Series 1995-B, 7.83% 2015 /1/ 2455 2,426 .24
USAir, Inc., 1996-B, 7.50% 2008 /1/ 2000 1,885 .19
Federal Express Corp. 7.53% 2006 1329 1,324 .13
Federal Agency Obligations-Mortgage
Pass-Throughs /4/- 1.56%
Government National Mortgage Assn. 8.50% 2022-2026 6210 6,368
Government National Mortgage Assn. 8.00% 2020-2022 6185 6,249 1.26
Federal National Mortgage Assn. 7.00% 2009 1946 1,909
Federal National Mortgage Assn. 9.00% 2019 1031 1,081 .30
Federal Agency Obligations-Other- 1.55%
Federal National Mortgage Assn. 6.53% 2006 10000 9,323
Federal National Mortgage Assn. 7.52% 2004 4000 3,972 1.33
Federal Home Loan Mortgage Corp. 6.555% 2006 2400 2,257 .22
Transportation- 0.44%
Canadian National Railway Co. 7.625% 2023 3000 2,827 .28
AMR Corp. 9.75% 2000 1000 1,075 .11
United Air Lines, Inc. 9.00% 2003 500 526 .05
Non-U.S. Government Obligations- 0.23%
Israel (State of) 6.375% 2005 2500 2,302 .23
Gas Utilities- 0.19%
Columbia Gas System Inc., Series F, 7.42% 2015 2000 1,847 .19
---------- ----------
TOTAL BONDS & NOTES (cost: $241,166,000) 234452 23.42
---------- ----------
Short-Term Securities
- ------------------------------------------------
Corporate Short-Term Notes- 10.35%
Xerox Corp. 5.28%-5.30% due 6/10-7/22/96 21,500 21,454 2.14
J.C. Penney Funding Corp. 5.29% due 7/9/96 20,300 20,183 2.02
Sara Lee Corp. 5.24%-5.27% due 6/26/96 20,000 19,923 1.99
Home Depot Inc. 5.27%-5.28% due 6/3-7/10/96 16,300 16,255 1.63
Southwestern Bell Telephone Co. 5.27% due 7/8/96 13,300 13,226 1.32
Weyerhaeuser Co. 5.27% due 6/19-8/12/96 12,600 12,525 1.25
Federal Agency Discount Notes- 2.12%
Federal National Mortgage Assn. 5.21% due 6/6-8/29/96 12,790 12,669 1.26
Federal Home Loan Mortgage Corp. 5.21% due 6/7/96 8,600 8,591 .86
--------- ---------
TOTAL SHORT-TERM SECURITIES (cost: $124,832,000) 124826 12.47
--------- ---------
TOTAL INVESTMENT SECURITIES (cost: $878,123,000) 996315 99.51
Excess of money market account, cash and
receivables over payables 4,914 .49
--------- ---------
NET ASSETS $1,001,229 100.00%
========= =========
/1/ Purchased in a private placement transaction;
resale to the public may require registration or sale
only to qualified institutional buyers.
/2/ Represents a step bond; coupon rate will increase
at a later date.
/3/ Valued under procedures established by the
Board of Trustees.
/4/ Pass-through securities backed by a pool of
mortgages or other loans on which principal payments
are periodically made. Therefore, the effective
maturity of these securities is shorter than the
stated maturity.
See Notes to Financial Statements
</TABLE>
Equity-type securities appearing in the portfolio
since November 30, 1995
Adobe Systems
H.F. Ahmanson & Co.
Air Products & Chemicals
Alexander & Baldwin
Anheuser-Busch Companies
Armor All Products
Baker Hughes
Circuit City Stores
Colgate-Palmolive
Diamond Shamrock
Duracell International
Echlin
General Mills
Greenfield Capital Trust
Jefferson BankShares
Mercantile Stores
Nokia
Equity-type securities eliminated from the portfolio
since November 30, 1995
Abbott Laboratories
Allstate
Apple Computer
Chase Manhattan
Detroit Edison
Entergy
First Fidelity Bancorporation
First Interstate Bancorp
First Tennessee National
Johnson Controls
Eli Lilly and Co.
Monsanto
J.P. Morgan & Co.
Northrop Grumman
Schlumberger
St. Paul Companies
TRINOVA
U.S. Bancorp
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES
BOND FUND
INVESTMENT PORTFOLIO - MAY 31, 1996 (Unaudited)
<S> <C> <C> <C>
U.S. GOVERNMENT BONDS 45.93%
CORPORATE BONDS 26.70
CASH & EQUIVALENTS 22.57
NON-U.S. GOVERNMENT BONDS 2.91
STOCKS 1.89
Percent
of Net
Largest Industry Holdings Assets
Diversified Media, Cable Television
& Telecommunications 6.90%
Transportation 5.63
Energy & Related Companies 2.55
Manufacturing & Materials 2.03
Merchandising 1.38
Principal Market Percent
Amount Value Of Net
Bonds & Notes (000) (000) Assets
Diversified Media, Cable Television &
Telecommunications - 6.90%
MFS Communications Co., Inc. 0%/9.375% 2004 /1/ $ 800 $ 606 1.62%
360/0/ Communications Co. 7.50% 2006 325 306
360/0/ Communications Co. 7.125% 2003 250 237 1.45
Brooks Fiber Properties, Inc. 0%/10.875% 2006 /1/ /2/ 700 390 1.05
Grupo Televisa, S.A. 0%/13.25% 2008 /1/ /2/ 500 267 .72
AT&T Corp. 8.625% 2031 250 261 .70
Viacom International Inc. 9.125% 1999 250 256 .68
Time Warner Inc. 7.95% 2000 250 254 .68
Transportation - 5.63%
Airplanes Pass Through Trust, Class C, 8.15% 2019 /3/ 500 493
Airplanes Pass Through Trust, Class D, 10.875% 2019 /3/ 275 286 2.09
Jet Equipment Trust, Series 1995-A, 11.44% 2014 /2/ /3/ 300 326
Jet Equipment Trust, Series 1994-A, 11.79% 2013 /2/ /3/ 250 278 1.62
Continental Airlines, Series 1996-C, 9.50% 2015 /2/ /3/ 250 249 .67
Teekay Shipping Corp. 8.32% 2008 250 239 .64
United Air Lines, Inc. 10.67% 2004 200 229 .61
Energy & Related Companies - 2.55%
Chesapeake Energy Corp. 9.125% 2006 500 497 1.33
Falcon Drilling Co., Inc., Series B, 8.875% 2003 250 244 .65
McDermott Inc. 9.375% 2002 200 214 .57
Manufacturing & Materials - 2.03%
Knoll Group, Inc. 10.875% 2006 /2/ 500 511 1.37
Northern Telecom Ltd. 6.875% 2002 250 247 .66
Merchandising - 1.38%
Loehmann's, Inc. 11.875% 2003 500 515 1.38
Cellular, Paging & Wireless Communications - 1.34%
NEXTEL Communications, Inc. 0%/11.50% 2003 /1/ 500 347 .93
Cellular Communications International, Inc.
Units, 0% 2000 250 152 .41
Financial Services - 1.29%
Ford Motor Credit Co. 6.85% 2000 250 247 .66
General Motors Acceptance Corp. 6.625% 2005 250 235 .63
Collateralized Mortgage Obligations
(Privately Originated) /3/ - 1.26%
Merrill Lynch Mortgage Investors, Inc., Series 1995-C2,
Class A, 7.259% 2021 /4/ 473 472 1.26
Cable & Telephone in the United Kingdom - 1.04%
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 /1/ 650 387 1.04
Insurance - 0.75%
Terra Nova (Bermuda) Holdings Ltd. 10.75% 2005 250 279 .75
Machinery & Engineering - 0.73%
Deere & Co. 8.95% 2019 250 272 .73
Broadcasting & Publishing - 0.63%
Chancellor Broadcasting Co. 9.375% 2004 250 234 .63
Electric & Gas Utilities - 0.62%
Columbia Gas System, Inc., Series F, 7.42% 2015 250 231 .62
Independent Power Producers - 0.55%
California Energy Co., Inc. 9.875% 2003 200 206 .55
Non-U.S. Governments & Governmental
Authorities - 2.91%
Argentina (Republic of) Eurobond Series L, 6.312% 2005 /4/ 446 343
Argentina (Republic of) 8.375% 2003 250 216 1.50
South Africa (Republic of) 13.00% 2010 ZAR1,000 186 .50
Deutschland Republic 8.00% 2002 DM250 183 .48
Brazil (Federal Republic of) Capitalization Bond 8.00% 2014 /5/ $ 271 162 .43
Federal Agency Obligations-Mortgage Pass-Throughs /3/ - 12.03%
Federal National Mortgage Assn. 10.00% 2018-2021 1,029 1,119
Federal National Mortgage Assn. 9.00% 2021 873 916 6.20
Federal National Mortgage Assn. 6.50% 2026 305 282
Government National Mortgage Assn. 6.50% 2025-2026 1,318 1,217
Government National Mortgage Assn. 5.00% 2026 500 480 5.83
Government National Mortgage Assn. 7.00% 2026 500 476
Federal Agency Obligations-Other - 0.62%
Federal Home Loan Mortgage Corp. 5.78% 2003 250 230 .62
U.S. Treasury Obligations - 33.28%
6.25% 2003 6,000 5,840
10.375% 2012 2,500 3,139
7.25% 2004 2,500 2,563 33.28
10.375% 2009 500 607
8.125% 2021 250 277
-------- --------
TOTAL BONDS & NOTES (cost: $29,141,000) 28,203 75.54
-------- -------
Number
of
Shares
Stocks
Preferred Stocks - 1.89%
Time Warner Inc., 10.25% cumulative exchangeable
preferred, Series K /2/ 500 $ 500 1.34%
El Paso Electric Co., 11.40% preferred,
Series A 2008 /5/ 2,000 204 .55
-------- --------
TOTAL STOCKS (cost: $700,000) 704 1.89
-------- --------
Principal
Amount
Short-Term Securities (000)
Corporate Short-Term Notes - 21.82%
Xerox Corp. 5.27% due 7/19/96 $ 1,100 1,092 2.92
Home Depot Inc. 5.27%-5.28% due 6/3-7/10/96 1095 1092 2.92
Walt Disney Co. 5.26% due 6/13/96 950 948 2.54
Associates Corp. of North America 5.40% due 6/3/96 940 940 2.52
AT&T Corp. 5.27% due 7/29/96 705 699 1.87
Albertson's Inc. 5.27% due 6/21/96 700 698 1.87
BellSouth Telecommunications, Inc. 5.28% due 6/12/96 650 649 1.74
PepsiCo, Inc. 5.28% due 6/12/96 600 599 1.60
Baltimore Gas and Electric Co. 5.29% due 6/6/96 500 499 1.34
Motorola Credit Corp. 5.25% due 6/26/96 484 482 1.29
General Electric Capital Corp. 5.29% due 6/5/96 450 450 1.21
-------- -------
TOTAL SHORT-TERM SECURITIES (cost: $8,148,000) 8,148 21.82
-------- -------
TOTAL INVESTMENT SECURITIES (cost: $37,989,000) 37,055 99.25
Excess of money market account, cash and
receivables over payables 279 .75
----------------
NET ASSETS $37,334 100.00%
======== ========
/1/ Represents a step bond; coupon rate will increase at a later date.
/2/ Purchased in a private placement transaction;
resale to the public may require registration or sale
only to qualified institutional buyers.
/3/ Pass-through securities backed by a pool of mortgages or other loans
on which principal payments are periodically made. Therefore, the
effective maturity of these securities is shorter than the stated maturity.
/4/ Coupon rate may change periodically.
/5/ Payment in kind. The issuer has the option of paying additional
securities in lieu of cash.
See Notes to Financial Statements
</TABLE>
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES
HIGH-YIELD BOND FUND
INVESTMENT PORTFOLIO - MAY 31, 1996 (Unaudited)
CORPORATE BONDS 80.48%
NON-U.S. CORPORATE BONDS 0.00%
U.S. TREASURY BONDS 6.56%
NON-U.S. GOVERNMENT BONDS 2.42%
CASH & EQUIVALENTS 9.09%
STOCKS 1.45%
Percent
of Net
Largest Corporate Holdings Assets
California Energy 2.60%
MFS Communications 2.55
Container Corp. of America 2.52
Coltec Industries 1.95
Bell Cablemedia 1.89
Videotron Holdings 1.85
Continental Cablevision 1.72
PanAmSat 1.72
International CableTel 1.69
Centennial Cellular 1.59
<S> <C> <C> <C>
Principal Market Percent
Amount Value Of Net
Bonds & Notes (000) (000) Assets
Cellular, Paging & Wireless Communications - 15.42%
PanAmSat, LP 9.75% 2000 $8,000 $8,360
PanAmSat, LP 0%/11.375% 2003 /1/ 2,000 1,715 1.72%
Centennial Cellular Corp. 8.875% 2001 10,000 9,350 1.59
MobileMedia Communications, Inc. 0%/10.50% 2003 /1/ 11,750 8,754 1.49
CellNet Data Systems, Inc. 0%/13.00% 2005 /1/ /2/ /3/ 14,000 8,610 1.47
Horizon Cellular Telephone Co., LP, Series B,
0%/11.375% 2000 /1/ 8,500 7,586 1.29
PriCellular Wireless Corp. 0%/12.25% 2003 /1/ 6,500 5,103
PriCellular Wireless Corp. 0%/14.00% 2001 /1/ 1,500 1,350 1.10
Paging Network, Inc. 11.75% 2002 5,800 6,308 1.07
NEXTEL Communications, Inc. 0%/11.50% 2003 /1/ /4/ 4,500 3,128
NEXTEL Communications, Inc. 0%/9.75% 2004 /1/ /4/ 3,000 1,823 .84
CenCall Communications Corp. 0%/10.125% 2004 /1/ /4/ 7,000 4,357 .74
Cellular Communications International, Inc. Units, 0% 2000 6,500 3,965 .68
Cellular, Inc. 0%/11.75% 2003 /1/ 4,500 3,724 .63
Rogers Cantel Mobile Communications Inc. 11.125% 2002 2,500 2,659
Rogers Cantel Mobile Communications Inc. 9.375% 2008 1,000 993 .62
Heartland Wireless Communications, Inc. 13.00% 2003 3,000 3,270 .56
Comunicacion Celular S.A. Units, 0%/13.125% 2003 /1/ /2/ 5,000 3,163 .54
Western Wireless Corp. 10.50% 2006 /2/ 1,500 1,507 .26
Dial Call Communications, Inc. 0%/12.25% 2004 /1/ /4/ 2,250 1,468 .25
InterCel Inc., 0%/12.00% 2006 /1/ 2,000 1,115 .19
Vanguard Cellular Systems, Inc. 9.375% 2006 1,000 985 .17
CAI Wireless Systems, Inc. 12.25% 2002 750 787 .13
People's Choice TV Corp. Units, 0%/13.125% 2004 /1/ 750 456 .08
Cable & Telephone in the United Kingdom - 7.11%
Bell Cablemedia PLC 0%/11.95% 2004 /1/ 15,500 11,082 1.89
Videotron Holdings PLC 0%/11.125% 2004 /1/ 14,500 10,875 1.85
International CableTel Inc. 0%/10.875% 2003 /1/ 13,250 9,904 1.69
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 /1/ 11,500 6,842 1.16
TeleWest PLC 9.625% 2006 2,500 2,456
TeleWest PLC 0%/11.00% 2007 /1/ 1,000 595 .52
Manufacturing & Materials - 6.97%
Coltec Industries Inc. 9.75% 2000 9,450 9,639
Coltec Industries Inc. 9.75% 1999 1,750 1,785 1.95
Kaiser Aluminum and Chemical Corp. 12.75% 2003 5,350 5,778 .98
Acme Metals Inc. 0%/13.50% 2004 /1/ 3,000 2,693
Acme Metals Inc. 12.50% 2002 2,500 2,556 .89
MagneTek, Inc. 10.75% 1998 3,500 3,465 .59
UCAR Global Enterprises Inc. 12.00% 2005 2,865 3,280 .56
Westinghouse Air Brake Co. 9.375% 2005 3,000 3,000 .51
Owens-Illinois, Inc. 11.00% 2003 2,500 2,712 .46
AGCO Corp. 8.50% 2006 /2/ 2,500 2,513 .43
AK Steel Corp. 10.75% 2004 2,250 2,458 .42
Knoll Group, Inc. 10.875% 2006 /2/ 1,000 1,022 .18
Diversified Media, Cable Television &
Telecommunications - 6.27%
MFS Communications Co., Inc. 0%/9.375% 2004 /1/ 19,750 14,961 2.55
Continental Cablevision, Inc. 8.30% 2006 /2/ 2,750 2,777
Continental Cablevision, Inc. 10.625% 2002 2,500 2,662
Continental Cablevision, Inc. 8.625% 2003 2,000 2,062
Continental Cablevision, Inc. 8.50% 2001 1,500 1,541
Continental Cablevision, Inc. 8.875% 2005 1,000 1,045 1.72
IntelCom Group Inc. 0%/12.50% 2006 /1/ /2/ 2,500 1,381
IntelCom Group Inc. 0%/13.50% 2005 /1/ 2,000 1,220 .45
Century Communications Corp. 9.50% 2000 2,000 2,010 .34
Brooks Fiber Properties, Inc. 0%/10.875% 2006 /1/ /2/ 3,250 1,812 .31
Jones Intercable, Inc. 9.625% 2002 1,500 1,530 .26
Summitt Communications Group, Inc. 10.50% 2005 1,000 1,105 .19
Telecom Argentina STET-France Telecom SA 12.00% 2002 1,000 1,075 .18
Comcast Corp. 10.25% 2001 925 971 .17
Storer Communications, Inc. 10.00% 2003 634 636 .10
Forest Products & Paper - 6.13%
Container Corp. of America 9.75% 2003 11,750 11,691
Container Corp. of America, Series A, 11.25% 2004 2,000 2,060
Container Corp. of America, Series B, 10.75% 2002 1,000 1,027 2.52
Fort Howard Paper Corp. 9.25% 2001 3,750 3,741
Fort Howard Paper Corp. 8.25% 2002 3,000 2,903
Fort Howard Paper Corp. 11.00% 2002 /5/ 1,817 1,890 1.45
PT Indah Kiat Pulp & Paper Corp. 8.875% 2000 /2/ 4,000 3,840
PT Indah Kiat Pulp & Paper Corp., Series B, 11.875%
2002 1000 1053 .83
Pacific Lumber Co. 10.50% 2003 4,000 3,900 .67
MAXXAM Group Inc. 11.25% 2003 2,000 2,000 .34
PT Pabrik Kertas Tjiwi Kimia 13.25% 2001 1000 1110 .19
Four M Corp. 12.00% 2006 /2/ 750 765 .13
Energy & Related Companies - 5.77%
Flores & Rucks, Inc. 13.50% 2004 4,500 5,220 .89
Triton Energy Corp. 0%/9.75% 2000 /1/ 4,500 4,331 .74
TransTexas Gas Corp. 11.50% 2002 4,000 3,920 .67
Falcon Drilling Co., Inc., Series B, 8.875% 2003 2,750 2,681
Falcon Drilling Co., Inc., Series B, 9.75% 2001 1,000 1,015 .63
Dual Drilling Co. 9.875% 2004 3,500 3,675 .62
Mesa Capital Corp. 12.75% 1998 3,000 3,000 .51
Chesapeake Energy Corp. 9.125% 2006 3,000 2,985 .51
Global Marine, Inc. 12.75% 1999 2,700 2,936 .50
Tuboscope Vetco International Corp. 10.75% 2003 2,000 2,067 .35
Benton Oil and Gas Co. 11.625% 2003 /2/ 2,000 2,050 .35
Broadcasting & Publishing - 5.31%
Marvel Holdings Inc., Series B, 0% 1998 10,900 8,611 1.47
American Media Operations, Inc. 11.625% 2004 7,000 7,070 1.21
American Radio Systems 9.00% 2006 4,000 3,780 .64
Infinity Broadcasting Corp. 10.375% 2002 2,750 2,949 .50
Univision Television Group, Inc. 11.75% 2001 2,500 2,659 .45
Chancellor Broadcasting Co. 9.375% 2004 1,500 1,403
Chancellor Broadcasting Co. 12.50% 2004 750 825 .38
Young Broadcasting Inc. 10.125% 2005 2,000 1,945 .33
Newsquest Capital plc 11.00% 2006 /2/ 1,000 1,005 .17
EZ Communications, Inc. 9.75% 2005 1,000 958 .16
Health & Personal Care - 4.31%
Integrated Health Services, Inc. 10.25% 2006 /2/ 4,500 4,466
Integrated Health Services, Inc. 10.75% 2004 2,500 2,563 1.20
Regency Health Services, Inc. 9.875% 2002 7,000 6,773 1.15
Universal Health Services, Inc. 8.75% 2005 6,500 6,435 1.10
Merit Behavioral Care Corp. 11.50% 2005 2,500 2,638 .45
Mariner Health Group, Inc. 9.50% 2006 /2/ 2,500 2,425 .41
Transportation - 3.80%
USAir, Inc., PassThrough Trust, Series 1993-A3,
10.375% 2013 /5/ 2,750 2,695
USAir, Inc. 10.00% 2003 2,000 1,880 .78
Atlas Air 12.25% 2002 /5/ 4,000 4,360 .74
Teekay Shipping Corp. 8.32% 2008 4,500 4,309 .73
Airplanes Pass Through Trust, Class D, 10.875% 2019 /5/ 3,000 3,120 .53
TNT Transport (Europe) PLC/TNT (USA) Inc. 11.50% 2004 3,000 3,060 .52
Delta Air Lines, Inc. 10.00% 2014 /2/ 2,000 2,267 .39
Northwest Airlines, Inc. 12.092% 2000 /5/ 619 637 .11
Independent Power Producers - 3.68%
California Energy Co., Inc. 0%/10.25% 2004 /1/ 15,800 15,247 2.60
Midland Cogeneration Venture LP, Series C-94, 10.33% 2002 /5/ 4,008 4,204
Midland Cogeneration Venture LP, Series C-91, 10.33% 2002 /5/ 2,064 2,164 1.08
Food Retailing - 3.66%
Stater Brothers Holdings Inc. 11.00% 2001 6,750 7,003 1.19
Star Markets Co., Inc. 13.00% 2004 5,000 5,175 .88
Carr-Gottstein Foods Co. 12.00% 2005 4,000 4,150 .71
Rykoff-Sexton, Inc. 8.875% 2003 4,400 4,048 .69
Safeway Inc. 10.00% 2002 1,000 1,095 .19
Leisure, Tourism & Restaurants - 3.09%
AMF Group Inc. 0%/12.25% 2006 /1/ /2/ 6,000 3,270
AMF Group Inc. 10.875% 2006 /2/ 1,250 1,244 .77
Foodmaker, Inc. 9.25% 1999 2,500 2,469
Foodmaker, Inc. 9.75% 2002 1,750 1,680 .71
Four Seasons Hotels Inc. 9.125% 2000 /2/ 3,500 3,509 .60
Wyndham Hotel Corp. 10.50% 2006 2,500 2,513 .43
Rio Hotel & Casino, Inc. 10.625% 2005 2,250 2,368 .40
Station Casinos, Inc. 9.625% 2003 1,100 1,064 .18
Merchandising - 2.96%
Bruno's, Inc. 10.50% 2005 6,250 6,156 1.05
Barnes & Noble, Inc., Series B, 11.875% 2003 5,250 5,683 .97
Thrifty PayLess, Inc. 12.25% 2004 3,250 3,632 .62
AnnTaylor, Inc. 8.75% 2000 1,500 1,410 .24
Loehmann's, Inc. 11.875% 2003 500 515 .08
Construction & Housing - 2.38%
Building Materials Corp., Series B, 0%/11.75% 2004 /1/ 6,500 4,842 .83
Triangle Pacific Corp. 10.50% 2003 4,300 4,488 .76
Del Webb Corp. 9.75% 2003 1,500 1,466
Del Webb Corp. 9.00% 2006 750 694 .37
Toll Corp. 9.50% 2003 1,500 1,538 .26
M.D.C. Holdings, Inc. 11.125% 2003 1,000 967 .16
Beverages - 1.15%
Dr Pepper Bottling Co. of Texas 10.25% 2000 4,000 4100 .70
Canandaigua Wine Co., Inc. 8.75% 2003 2,750 2,626 .45
Miscellaneous Services - 0.69%
Neodata Services, Inc., Series B, 12.00% 2003 2,500 2,531 .43
A.P.S., Inc. 11.875% 2006 /2/ 1,500 1,552 .26
Protection Services - 0.64%
ADT Operations, Inc. 9.25% 2003 2,000 2,070 .35
Protection One Alarm Monitoring, Inc. 0%/13.625% 2005 /1/ 2,000 1,710 .29
Textiles & Apparel - 0.46%
WestPoint Stevens Inc. 8.75% 2001 2,000 1,960 .34
Tultex Corp. 10.625% 2005 750 780 .12
Real Estate - 0.35%
B.F. Saul Real Estate Investment Trust 11.625% 2002 2,000 2,060 .35
Electric & Gas Utilities - 0.33%
Columbia Gas System, Inc., Series A, 6.39% 2000 2,000 1,947 .33
Non-U.S. Governments & Governmental
Authorities - 2.27%
Argentina (Republic of) Eurobond, Series L, 6.312% 2005 /6/ 6930 5336
Argentina (Republic of) 8.375% 2003 500 433 .98
Poland (Republic of) Past Due Interest Bond 3.75% 2014 /6/ 3,250 2,438
Poland Discount Eurobond 6.875% 2024 /6/ 750 690 .53
United Mexican States Collateralized Eurobond
Series B, 6.25% 2019 1,500 968
United Mexican States Collateralized Eurobond
Series A, 6.25% 2019 1,125 726
United Mexican States Government 11.50% 2026 630 584
United Mexican States Government 9.75% 2001 500 493 .47
Panama (Republic of) Interest Reduction Bond 3.50% 2049 /6/ 3,000 1,680 .29
Brazil (Federal Republic of) Debt Conversion Bond
6.563% 2012 /6/ 1,000 654
Brazil (Federal Republic of) Eligible Interest Bond
6.50% 2006 /6/ 250 193 .15
U.S. Treasury Obligations - 6.56%
7.375% 1997 10,000 10,172 1.73
11.625% 2004 6,600 8,593 1.47
7.75% 2001 8,000 8,354 1.42
6.875% 1999 6,000 6,063 1.03
8.50% 2000 5,000 5,356 .91
-------- --------
TOTAL BONDS & NOTES (cost: $519,430,000) 525,335 89.46
-------- -------
Number
of
Stocks Shares
Common & Preferred Stocks - 1.45%
EarthWatch Inc., 12.00% convertible preferred, Series C, /2/ /7/ /8/ 350,000 3,500 .60
Time Warner, Inc., 10.25% cumulative exchangeable
preferred, Series K /2/ 3,000 3,000 .51
CellNet Data Systems, Inc., warrants, expire 2005 /3/ /7/ 56,000 1,120 .19
Marriott International, Inc. 4,512 214 .04
El Paso Electric Co., 11.40% preferred, Series A 2008 /8/ 2,000 204 .03
Heartland Wireless Communications, Inc.,
warrants, expire 2000 /2/ /7/ 18,000 135 .02
IntelCom Group Inc., warrants, expire 2005 /2/ /7/ 13,200 134 .02
Thrifty PayLess, Inc., Class B /7/ 5,700 82 .01
Protection One Alarm Monitoring, Inc., warrants,
expire 2005 /2/ /7/ 6,400 66 .01
Host Marriott Corp. /7/ 4,512 59 .01
Host Marriott Services Corp. /7/ 902 7 .01
Dial Page, Inc., warrants, expire 1999 /3/ /7/ 9,500 - .00
-------- --------
TOTAL STOCKS (cost: $8,277,000) 8,521 1.45
-------- --------
Principal
Amount
Short-Term Securities (000)
Corporate Short-Term Notes - 8.03%
Weyerhaeuser Co. 5.29% due 7/24/96 $ 14,000 13,889 2.37
Sara Lee Corp. 5.23%-5.24% due 6/6-6/26/96 10,600 10,574 1.80
Raytheon Co. 5.29% due 6/10/96 10000 9986 1.70
Hershey Foods Corp. 5.29% due 6/20/96 6,000 5,982 1.02
Associates Corp. of North America 5.40% due 6/3/96 3,700 3,698 .63
PepsiCo, Inc. 5.28% due 6/13/96 3,000 2,994 .51
-------- -------
TOTAL SHORT-TERM SECURITIES (cost: $47,123,000) 47,123 8.03
-------- -------
TOTAL INVESTMENT SECURITIES (cost: $574,830,000) 580,979 98.94
Excess of money market account, cash and
receivables over payables 6,239 1.06
----------------
NET ASSETS $587,218 100.00%
================
/1/ Represents a step bond; coupon rate will increase
at a later date.
/2/ Purchased in a private placement transaction; resale to the public
may require registration or sale only to qualified institutional buyers.
/3/ Valued under procedures established by the Board of Trustees.
/4/ CenCall Communications merged with NEXTEL on July 28, 1995, and Dial Call
Communications merged with NEXTEL on January 31, 1996. The securities of
CenCall and Dial Call have become obligations of NEXTEL.
/5/ Pass-through securities backed by a pool of mortgages or other loans on which
principal payments are periodically made. Therefore, the effective maturity of these
securities is shorter than the stated maturity.
/6/ Coupon rate may change periodically.
/7/ Non-income-producing securities.
/8/ Payment in kind. The issuer has the option of paying additional securities in lieu of cash.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
U.S. Government/AAA-Rated Securities Fund
Investment Portfolio, May 31, 1996
(Unaudited)
<S> <C> <C> <C>
- ------------------------------------------------ -------- -------- --------
U.S. TREASURY BONDS 49.33%
FEDERAL AGENCY MORTGAGE-RELATED SECURITIES 18.25
PRIVATE MORTGAGE & ASSET-BACKED SECURITIES 11.84
OTHER FEDERAL OBLIGATIONS 9.31
CASH & EQUIVALENTS 5.42
CORPORATE BONDS 3.74
DEVELOPMENTAL AGENCIES & NON-U.S.
GOVERNMENT BONDS 2.11
- ------------------------------------------------ -------- -------- --------
Principal Market Percent
Amount Value of Net
Bonds & Notes (000) (000) Assets
- ------------------------------------------------ -------- -------- --------
U.S. Treasury Obligations - 49.33%
10.375% 2012 $47,500 $59,635 11.63%
8.875% 2017 40300 47661 9.30
10.375% 2009 28,500 34,597 6.75
9.25% 1998 20,000 21,187 4.13
12.00% 2013 13000 18147 3.54
8.125% 1998 14250 14682 2.86
8.75% 2008 10000 11027 2.15
8.875% 1997 10000 10380 2.02
11.75% 2010 5500 7191 1.40
8.375% 2008 5000 5418 1.06
7.25% 2016 5,000 5,035 .98
12.50% 2014 3,000 4,370 .85
10.625% 2015 3,000 4,078 .80
14.25% 2002 2000 2699 .53
7.25% 2004 2000 2050 .40
13.125% 2001 1500 1906 .37
10.75% 2003 1250 1518 .30
9.00% 1998 1250 1313 .26
Federal Agency Obligations - Mortgage
Pass-Throughs /1/ - 17.71%
Government National Mortgage Assn. 8.50% 2021-2026 26039 26729
Government National Mortgage Assn. 9.50% 2019-2021 8724 9365
Government National Mortgage Assn. 7.50% 2022-2023 4912 4837
Government National Mortgage Assn. 6.00% 2024 4606 4653
Government National Mortgage Assn. 6.50% 2024 4306 4299 10.77
Government National Mortgage Assn. 8.00% 2022 3337 3372
Government National Mortgage Assn. 9.00% 2009-2016 1555 1645
Government National Mortgage Assn. 10.50% 2019 227 251
Government National Mortgage Assn. 11.00% 2019 80 89
Government National Mortgage Assn. 12.00% 2012-2014 9 10
Federal National Mortgage Assn. 8.00% 2024 9290 9347
Federal National Mortgage Assn. 8.50% 2023 6963 7181
Federal National Mortgage Assn. 10.00% 2018 5135 5575 6.50
Federal National Mortgage Assn. 7.50% 2009 4352 4362
Federal National Mortgage Assn. 9.00% 2011-2025 3765 3930
Federal National Mortgage Assn. 7.00% 2010 2970 2913
Federal Home Loan Mortgage Corp. 9.00% 2021-2022 1979 2067
Federal Home Loan Mortgage Corp. 9.50% 2016 153 163 .44
Federal Home Loan Mortgage Corp. 12.00% 2010 2 2
Federal Agency Obligations - Other - 9.31%
FNSM Principal STRIPS 0%/7.56% 2001 /2/ 15,000 14,311
FNSM Principal STRIPS 0%/8.62% 2022 /2/ 10000 8516 5.70
FNSM Principal STRIPS 0%/7.94% 2001 /2/ 5000 4826
FNSM Principal STRIPS 0%/8.25% 2022 /2/ 2000 1592
Federal Home Loan Mortgage Corp. 6.555% 2006 8500 7993
Federal Home Loan Mortgage Corp. 6.945% 2005 2000 1922 1.93
Federal National Mortgage Assn. 6.53% 2006 7000 6526
Federal National Mortgage Assn. 8.625% 2021 2000 2071 1.68
Collateralized Mortgage Obligations
(Privately Originated) /1/ - 8.26%
Westam Mortgage, Class 4-H, 8.95% 2018 11000 11,625 2.27
GE Capital Mortgage Services, Inc., Series 1994-15, Class A-10,
6.00% 2009 8000 6,880 1.34
CS First Boston Mortgage Securities Corp., Series 1995-AEW1,
Class A-1, 6.665% 2027 5527 5437 1.06
Prudential Home Mortgage Securities Co., Inc., Series 1992-33,
Class A-12, 7.50% 2022 5274 5281 1.03
Structured Asset Securities Corp., Series 1996-CFL,
Class A1-C, 5.944% 2028 4900 4698 .92
CMC Securities Corp. I, Series 1993-E, Class S-9, 6.50% 2008 4518 4062 .79
J.P. Morgan Commercial Mortgage Finance Corp., Series 1995-C1,
Class A2, 7.351% 2010 /3/ 3000 2940 .57
Merrill Lynch Mortgage Investors Inc., Series 1995-C3,
Class A-2, 6.848% 2025 /3/ 1,500 1,440 .28
Asset-Backed Obligations /1/ - 3.58%
MBNA Credit Card Trust 1991-A, 7.75% 1998 6875 6920 1.35
Standard Credit Card Master Trust 1991-3, Class A,
8.875% 1999 5500 5741
Standard Credit Card Trust 1990-6, Series A,
9.375% 1998 875 902 1.30
Green Tree Financial Corp., Series 1995-9, Class A-5,
6.80% 2027 5000 4780 .93
Financial - 2.71%
The Trustees of Columbia University in the City of New York,
Series B, 8.65% 2003 3000 3229
The Trustees of Columbia University in the City of New York, 1.04
Series B, 8.62% 2001 2000 2126
General Electric Capital Corp. 8.70% 2007 2,500 2,784
General Electric Capital Corp. 8.625% 2008 2,000 2,201 .97
Signal Capital Corp. 9.95% 2006 2157 2197 .44
National Westminster Bancorp Inc. 12.125% 2002 1256 1353 .26
Developmental Authorities - 1.48%
International Bank for Reconstruction & Development 7.90%
1998 3,000 3,074
International Bank for Reconstruction & Development 14.90%
1997 1200 1299 1.06
International Bank for Reconstruction & Development 9.77%
1998 1000 1060
European Investment Bank 8.875% 2001 2000 2149 .42
Electric Utilities - 0.70%
Public Service Electric and Gas Co. First and Refunding Mortgage
Bonds, Series SS, MBIA Insured, 7.00% 2024 4,000 3,580 .70
Non-U.S. Government Obligations - 0.63%
Ontario (Province of) 15.75% 2012 1,700 1,908
Ontario (Province of) 15.25% 2012 1145 1322 .63
Collateralized Mortgage Obligations
(Federal Agencies) /1/ - 0.54%
Federal Home Loan Mortgage Corp., Series 1716, Class A,
6.50% 2009 2250 2109
Federal Home Loan Mortgage Corp., Series 83-B, Class B-3,
12.50% 2013 592 644 .54
Telephone Utilities - 0.22%
BellSouth Savings and Security ESOP Trust 9.125% 2003 1050 1118 .22
Industrials - 0.11%
DeBartolo Capital Corp. II 8.00% Euronotes 1996 575 576 .11
-------- --------
TOTAL BONDS & NOTES (cost: $499,915,000) 484,876 94.58
-------- --------
Short-Term Securities
- ------------------------------------------------
Corporate Short-Term Notes - 6.14%
PepsiCo, Inc. 5.28% due 6/13/96 15200 15171 2.96
J.C. Penney Funding Corp. 5.27%-5.29% due 7/9-7/22/96 7700 7650 1.49
Sara Lee Corp. 5.24% due 6/26/96 6700 6674 1.30
Associates Corp. of North America 5.40% due 6/3/96 2000 1999 .39
-------- --------
TOTAL SHORT-TERM SECURITIES (cost: $31,495,000) 31494 6.14
-------- --------
TOTAL INVESTMENT SECURITIES (cost: $531,410,000) 516370 100.72
Excess of payables over money market account, cash
and receivables 3,688 .72
-------- --------
NET ASSETS $512,682 100.00%
======== ========
/1/ Pass-through securities backed by a pool of
mortgages or other loans on which principal
payments are periodically made. Therefore,
the effective maturity of these securities is
shorter than the stated maturity.
/2/ Represents a step bond; coupon rate will
increase at a later date.
/3/ Coupon rates may change periodically.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
Cash Management Fund
Investment Portfolio, May 31, 1996 (unaudited)
<S> <C> <C> <C>
Principal Market
Amount Value Percent of
Short-Term Securities (000) (000) Net Assets
Corporate Short-Term Notes - 91.34%
U S WEST Communications, Inc. 5.32% due 6/3/96 $9,000 $8,996 4.31%
Toys "R" Us, Inc. 5.27% due 6/3/96 7,000 6997 3.36
A.I. Credit Corp. 5.30% due 6/7/96 7,000 6,993 3.35
Beneficial Corp. 5.29% due 6/10/96 7,000 6,990 3.35
Warner-Lambert Co. 5.27% due 6/21/96 7,000 6,978 3.35
PACCAR Financial Corp. 5.27% due 6/25/96 7,000 6974 3.35
Baltimore Gas and Electric Co. 5.27% due 6/27-7/18/96 7,000 6,966 3.34
Harvard University 5.28% due 7/1-7/10/96 6,900 6,865 3.29
Walt Disney Co. 5.27% due 6/17/96 6,800 6783 3.25
Raytheon Co. 5.28% due 6/12/96 6,300 6289 3.02
John Deere Capital Corp. 5.28% due 6/11/96 6,000 5,990 2.87
Lucent Technologies Inc. 5.27% due 6/19/96 6,000 5983 2.87
Commercial Credit Co. 5.28% due 7/2/96 6,000 5,972 2.86
PepsiCo, Inc. 5.25% due 7/9/96 6,000 5,966 2.86
Xerox Corp. 5.29% due 7/8/96 5,800 5768 2.77
J.C. Penney Funding Corp. 5.29% due 6/20/96 5,600 5,584 2.68
H.J. Heinz Co. 5.28% due 7/1/96 /1/ 5,600 5574 2.67
CIT Group Holdings Inc. 5.28% due 7/26/96 5,600 5,554 2.66
Motorola Credit Corp. 5.25% due 6/26/96 5,500 5479 2.63
American Express Credit Corp. 5.27%-5.28% due 6/5-6/26/96 5,300 5288 2.54
Ford Motor Credit Co. 5.29% due 6/12/96 5,200 5,191 2.49
Schering Corp. 5.30% due 6/4/96 5,000 4997 2.40
BellSouth Telecommunications, Inc. 5.27% due 6/5/96 5,000 4,996 2.40
Weyerhaeuser Co. 5.26% due 6/18/96 5,000 4987 2.39
Monsanto Co. 5.26% due 7/22/96 /1/ 4,900 4,863 2.33
SAFECO Credit Co. Inc. 5.30% due 6/3/96 4,600 4,598 2.21
Minnesota Mining and Manufacturing Co. 5.27% due 6/11/96 4,500 4493 2.16
Pitney Bowes Credit Corp. 5.28% due 8/1/96 4,500 4,459 2.14
Southwestern Bell Telephone Co. 5.27% due 6/13/96 4,400 4392 2.11
Hewlett-Packard Co. 5.28% due 6/14/96 4,100 4092 1.96
Albertson's Inc. 5.27% due 6/21/96 3,900 3,888 1.87
General Electric Capital Corp. 5.28% due 6/6/96 3,820 3,817 1.83
IBM Credit Corp. 5.27% due 7/10/96 2,900 2,883 1.38
American General Corp. 5.29% due 6/13/96 2,600 2595 1.24
International Lease Finance Corp. 5.28% due 6/17/96 2,200 2,194 1.05
Federal Agency Discount Notes - 8.72%
Federal Home Loan Bank 5.20% due 6/24/96 10,000 9965 4.78
Federal Home Loan Mortgage Corp. 5.26% due 6/28/96 8,250 8216 3.94
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: $208,615,000) 208615 100.06
Excess of payables over cash and receivables 116 .06
---------- ----------
NET ASSETS $208,499 100.00%
========== ==========
/1/ Purchased in a private placement transaction; resale to the public
may require registration or sale only to qualified institutional buyers.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
at May 31, 1996
(unaudited)
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
- ----------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities at market
(cost: $2,700,110; $1,789,865;
$3,565,372; $878,123; $37,989
$574,830; $531,410; $208,615
and $10,286,314, respectivel $3,603,892 $2,106,728 $4,587,099 $996,315
Money market account 300 100 100 100
Cash 111 12 58 26
Receivables for-
Sales of investments 33,604 1,059 10,486 -
Sales of fund's shares 1,928 1,375 2,033 295
Open forward currency
contracts - - - -
Dividends and accrued
interest 1,276 12,134 11,090 6,065
---------- ---------- ---------- ----------
3,641,111 2,121,408 4,610,866 1,002,801
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 8,129 21,185 19,426 1,161
Repurchases of fund's shares - - - -
Management services 1,273 1,057 1,493 396
Accrued expenses 42 239 50 15
---------- ---------- ---------- ----------
9,444 22,481 20,969 1,572
NET ASSETS AT ---------- ---------- ---------- ----------
MAY 31, 1996 $3,631,667 $2,098,927 $4,589,897 $1,001,229
=========== =========== =========== ===========
Shares of beneficial interest
outstanding (unlimited
shares authorized) 88,292,133 141,514,209 140,383,979 71,481,228
Net asset value per share $41.13 $14.83 $32.70 $14.01
U.S. (dollars
Government/ in
High-Yield AAA-Rated Cash thousands)
Bond Bond Securities Management
Fund Fund Fund Fund Total
---------- ---------- ---------- ---------- ----------
ASSETS:
Investment securities at market
(cost: $2,700,110; $1,789,865;
$3,565,372; $878,123; $37,989
$574,830; $531,410; $208,615
and $10,286,314, respectivel $37,055 $580,979 $516,370 $208,615 $12,637,053
Money market account 100 100 145 - 945
Cash 482 54 81 71 895
Receivables for-
Sales of investments - 3,239 - - 48,388
Sales of fund's shares 273 - - - 5,904
Open forward currency
contracts 2 - - - 2
Dividends and accrued
interest 402 8,235 5,761 - 44,963
---------- ---------- ---------- ---------- ----------
38,314 592,607 522,357 208,686 12,738,150
LIABILITIES: ---------- ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 962 5,099 8,895 - 64,857
Repurchases of fund's shares - 30 549 102 681
Management services 17 250 222 82 4,790
Accrued expenses 1 10 9 3 369
---------- ---------- ---------- ---------- ----------
980 5,389 9,675 187 70,697
NET ASSETS AT ---------- ---------- ---------- ---------- ----------
MAY 31, 1996 $37,334 $587,218 $512,682 $208,499 $12,667,453
=========== =========== =========== =========== ===========
Shares of beneficial interest
outstanding (unlimited
shares authorized) 3,828,661 41,648,754 46,862,087 18,754,899
Net asset value per share $9.75 $14.10 $10.94 $11.12
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Operations
for the six months ended May 31, 1996
(unaudited)
<S> <C> <C> <C> <C> <C>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
---------- ---------- --------- ----------
INVESTMENT INCOME:
Income:
Dividends $ 8,441 $ 22,203 $ 43,354 $ 8,152
Interest 10,538 9,144 16,277 12,252
---------- ---------- ---------- ----------
18,979 31,347 59,631 20,404
---------- ---------- ---------- ----------
Expenses:
Management services fee 7,029 5,830 8,394 2,227
Reports to shareholders 9 8 17 4
Registration statement and
prospectus 187 97 209 38
Postage, stationery and
supplies 44 21 49 11
Trustees' fees 19 10 24 5
Auditing and legal fees 38 20 47 10
Custodian fee 81 657 96 29
Taxes other than federal
income tax 46 27 60 14
Other expenses 19 29 24 7
---------- ---------- ---------- ----------
7,472 6,699 8,920 2,345
---------- ---------- ---------- ----------
Net investment income 11,507 24,648 50,711 18,059
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 141,193 33,722 146,640 52,337
---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments: 101,346 122,545 190,877 (3,973)
Net increase in unrealized appreciation
on open forward currency contracts - - - -
---------- ---------- ---------- -----------
Net unrealized appreciation
(depreciation) 101,346 122,545 190,877 (3,973)
---------- ---------- ---------- -----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 242,539 156,267 337,517 48,364
---------- ---------- ---------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $254,046 $180,915 $388,228 $66,423
========= =========== ========= =========
U.S.
High- Government/ Cash
Yield AAA-Rated Manage-
Bond Bond Securities ment
Fund * Fund Fund Fund Total
---------- ---------- ------------------------- ---------
INVESTMENT INCOME:
Income:
Dividends - $ 1 - - $ 82,151
Interest $ 557 28,044 $ 20,768 $ 5,558 103,138
---------- ---------- ---------- ---------- ----------
557 28,045 20,768 5,558 185,289
---------- ---------- ---------- ---------- ----------
Expenses:
Management services fee 47 1,432 1,363 466 26,788
Reports to shareholders - 7 2 1 48
Registration statement and
prospectus - 43 22 2 598
Postage, stationery and
supplies - 2 6 2 135
Trustees' fees - 3 3 1 65
Auditing and legal fees - 6 7 2 130
Custodian fee 1 19 17 6 906
Taxes other than federal
income tax - 9 9 4 169
Other expenses - 4 5 3 91
---------- ---------- ---------- ---------- ----------
48 1,525 1,434 487 28,930
---------- ---------- ---------- ---------- ----------
Net investment income 509 26,520 19,334 5,071 156,359
---------- ---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) (22) 2,268 (727) - 375,411
---------- ---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments: (934) 1,550 (27,571) - 383,840
Net increase in unrealized appreciation
on open forward currency contracts 2 - - - 2
--------------------- ------------------------- ----------
Net unrealized appreciation
(depreciation) (932) 1,550 (27,571) - 383,842
--------------------- ------------------------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments (954) 3,818 (28,298) - 759,253
--------------------- ------------------------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $(445) $30,338 $(8,964) $5,071 $915,612
========= ========= =============== ========= =========
* For the period January 2, 1996, commencement
of operations, through May 31, 1996.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Changes in Net Assets
for the six months ended May 31, 1996
(unaudited)
Inter- Growth- Asset
Growth national Income Allocation Bond
Fund Fund Fund Fund Fund /1/
- ---------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 11,507 $ 24,648 $ 50,711 $ 18,059 $ 509
Net realized gain (loss) on investments 141,193 33,722 146,640 52,337 (22)
Net unrealized appreciation (depreciation)
on investments 101,346 122,545 190,877 (3,973) (932)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 254,046 180,915 388,228 66,423 (445)
----------- ----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (14,503) (16,612) (50,080) (17,281) -
Distributions from net realized
gain on investments (259,929) (35,844) (159,645) (30,507) -
----------- ----------- ----------- ----------- -----------
Total dividends and distributions (274,432) (52,456) (209,725) (47,788) -
----------- ----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
8,176,711; 17,363,940; 9,386,147;
5,598,058; 3,776,366; 3,190,502;
2,176,146; 11,465,631 and 61,133,501 shares,
respectively 325,359 246,835 296,780 76,735 37,245
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
7,267,394; 3,838,098; 6,907,007;
3,582,803; 1,860,424;
1,689,439; 449,224 and 25,594,389 shares,
respectively 274,432 52,456 209,725 47,788 -
Cost of shares repurchased:
2,590,914; 2,298,141; 1,528,207;
843,459; 47,705; 1,579,287;
4,060,980; 10,544,600 and 23,493,293 shares,
respectively (102,179) (32,294) (48,380) (11,621) (466)
Net increase (decreaase) in net ----------- ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 497,612 266,997 458,125 112,902 36,779
----------- ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 477,226 395,456 636,628 131,537 36,334
NET ASSETS:
Beginning of period 3,154,441 1,703,471 3,953,269 869,692 1,000 /2/
----------- ----------- ----------- ----------- -----------
End of period (including
undistributed net investment
income: $5,061; $17,974; $25,570;
$9,284; $509; $13,343; $10,036;
$2,609 and $84,386, respectively) $3,631,667 $2,098,927 $4,589,897 $1,001,229 $37,334
============ ============ ============ ============ ============
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $ 26,520 $ 19,334 $ 5,071 $ 156,359
Net realized gain (loss) on investments 2,268 (727) - 375,411
Net unrealized appreciation (depreciation)
on investments 1,550 (27,571) - 383,842
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 30,338 (8,964) 5,071 915,612
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (25,834) (18,957) (4,948) (148,215)
Distributions from net realized
gain on investments - - - (485,925)
----------- ----------- ----------- -----------
Total dividends and distributions (25,834) (18,957) (4,948) (634,140)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
8,176,711; 17,363,940; 9,386,147;
5,598,058; 3,776,366; 3,190,502;
2,176,146; 11,465,631 and 61,133,501 shares,
respectively 45,051 24,718 127,055 1,179,778
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
7,267,394; 3,838,098; 6,907,007;
3,582,803; 1,860,424;
1,689,439; 449,224 and 25,594,389 shares,
respectively 25,834 18,957 4,948 634,140
Cost of shares repurchased:
2,590,914; 2,298,141; 1,528,207;
843,459; 47,705; 1,579,287;
4,060,980; 10,544,600 and 23,493,293 shares,
respectively (22,376) (45,353) (116,744) (379,413)
Net increase (decreaase) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 48,509 (1,678) 15,259 1,434,505
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 53,013 (29,599) 15,382 1,715,977
NET ASSETS:
Beginning of period 534,205 542,281 193,117 10,951,476
----------- ----------- ----------- -----------
End of period (including
undistributed net investment
income: $5,061; $17,974; $25,570;
$9,284; $509; $13,343; $10,036;
$2,609 and $84,386, respectively) $587,218 $512,682 $ 208,499 $12,667,453
============ ============ ============ ============
/1/ For the period January 2, 1996, commencement of
operations, through May 31, 1996.
/2/ Represents initial capitalization from sale of
100,000 shares of beneficial interest.
See Notes to Financial Statements
</TABLE>
<TABLE> `
American Variable Insurance Series
FINANCIAL STATEMENTS
(dollars in thousands)
Statement of Changes in Net Assets
for the year ended November 30, 1995
<S> <C> <C> <C> <C>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
- ---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $ 23,635 $ 40,140 $ 88,796 $ 30,480
Net realized gain (loss) on investments 259,039 34,945 160,279 30,610
Net unrealized appreciation
on investments 480,224 83,096 691,459 129,814
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 762,898 158,181 940,534 190,904
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (20,133) (37,537) (85,055) (29,507)
Distributions from net realized
gain on investments (51,801) (44,136) (112,521) (9,640)
----------- ----------- ----------- -----------
Total dividends and distributions (71,934) (81,673) (197,576) (39,147)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,348,086; 19,173,422; 13,715,393;
6,084,975; 7,379,725; 6,989,389;
20,995,679 and 88,686,669 shares,
respectively 528,750 254,241 387,075 76,296
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,225,519; 6,335,172; 7,750,200;
3,296,555; 3,356,613; 3,279,414;
937,931 and 27,181,404 shares,
respectively 71,934 81,673 197,576 39,147
Cost of shares repurchased:
4,610,567; 8,773,846; 4,174,136;
2,877,501; 2,819,500; 6,063,251;
24,444,114 and 53,762,915 shares,
respectively (164,548) (113,837) (114,706) (34,878)
Net increase (decrease) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 436,136 222,077 469,945 80,565
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,127,100 298,585 1,212,903 232,322
NET ASSETS:
Beginning of year 2,027,341 1,404,886 2,740,366 637,370
----------- ----------- ----------- -----------
End of year (including
undistributed net investment
income: $8,057; $9,938; $24,939;
$8,506; $12,657; $9,659; $2,486
and $76,242, respectively) $3,154,441 $1,703,471 $3,953,269 $869,692
============ ============ ============ ============
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
- ---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $ 46,966 $ 37,218 $ 10,687 $ 277,922
Net realized gain (loss) on investments (11,260) (5,497) - 468,116
Net unrealized appreciation
on investments 47,164 37,855 - 1,469,612
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 82,870 69,576 10,687 2,215,650
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (44,378) (36,115) (10,344) (263,069)
Distributions from net realized
gain on investments - - - (218,098)
----------- ----------- ----------- -----------
Total dividends and distributions (44,378) (36,115) (10,344) (481,167)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,348,086; 19,173,422; 13,715,393;
6,084,975; 7,379,725; 6,989,389;
20,995,679 and 88,686,669 shares,
respectively 99,350 77,672 233,089 1,656,473
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,225,519; 6,335,172; 7,750,200;
3,296,555; 3,356,613; 3,279,414;
937,931 and 27,181,404 shares,
respectively 44,378 36,115 10,344 481,167
Cost of shares repurchased:
4,610,567; 8,773,846; 4,174,136;
2,877,501; 2,819,500; 6,063,251;
24,444,114 and 53,762,915 shares,
respectively (37,940) (67,704) (271,390) (805,003)
Net increase (decrease) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 105,788 46,083 (27,957) 1,332,637
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 144,280 79,544 (27,614) 3,067,120
NET ASSETS:
Beginning of year 389,925 462,737 220,731 7,883,356
----------- ----------- ----------- -----------
End of year (including
undistributed net investment
income: $8,057; $9,938; $24,939;
$8,506; $12,657; $9,659; $2,486
and $76,242, respectively) $534,205 $542,281 $193,117 $10,950,476
============ ============ ============ ============
See Notes to Financial Statements
</TABLE>
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 eight different funds. The eighth fund, the Bond Fund,
commenced operations on January 2, 1996. The assets of each fund are
segregated, with each fund accounted for separately. The funds' investment
objectives are as follows: Growth Fund - growth of capital by investing
primarily in common stocks or securities with common stock characteristics;
International Fund - long-term growth of capital by investing primarily in
securities of issuers domiciled outside the U.S.; Growth-Income Fund - growth
of capital and income by investing primarily in common stocks or other
securities which demonstrate the potential for appreciation and/or dividends;
Asset Allocation Fund - high total return (including income and capital gains)
consistent with long-term preservation of capital; Bond Fund - as high a level
of current income as is consistent with the preservation of capital by
investing primarily in fixed-income securities; High-Yield Bond Fund - high
current income and secondarily capital appreciation by investing primarily in
intermediate and long-term corporate obligations; U.S. Government/AAA-Rated
Securities Fund - a high level of current income consistent with prudent
investment risk and preservation of capital by investing primarily in a
combination of securities guaranteed by the U.S. government and other debt
securities rated AAA or Aaa; Cash Management Fund - high current yield while
preserving capital by investing in a diversified selection of high-quality
money market instruments. The following paragraphs summarize the significant
accounting policies consistently followed by the series in the preparation of
its financial statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price
on the day of valuation; other securities, and securities for which no sale was
reported on that date, are stated at the last quoted bid price. 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 prices for securities of comparable
maturity, quality and type. Securities denominated in non-U.S. currencies are
generally valued on the basis of bid quotations. Short-term securities with
original or remaining maturities in excess of 60 days, including forward
currency contracts, 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, including forward
currency contracts, 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 (Depreciation) 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 $906,000, of which
$41,000 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. During the six months ended May 31, 1996, the International Fund
realized, on a tax basis, a net capital gain of $33,069,000 on securities
transactions. During the six months ended May 31, 1996, the High-Yield Bond
Fund utilized a capital loss carryforward of $2,268,000 to offset, for tax
purposes, capital gains realized during the six months up to such amount. The
High-Yield Bond Fund and the U.S. Government/AAA-Rated Securities Fund have
available at May 31, 1996 capital loss carryforwards totaling $9,089,000 and
$8,866,000 respectively, which may be used to offset capital gains realized
during subsequent years through November 30, 2003. It is the intention of these
funds not to make distributions from capital gains while there are capital loss
carryforwards. For book and federal income tax purposes, the amounts of
unrealized appreciation and depreciation and the cost of portfolio securities,
excluding forward currency contracts at May 31, 1996 were as follows:
<TABLE>
<CAPTION>
Growth- Asset
Growth Interna- Income Allocation
Fund tional Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Unrealized
appreciation $ 964,359 $ 363,120 $1,054,273 $ 130,327
Unrealized
depreciation 60,577 46,257 32,546 12,135
Net unrealized
appreciation
(depreciation) 903,782 316,863 1,021,727 118,192
Cost of portfolio
securities 2,700,110 1,789,865 3,565,372 878,123
High-Yield U.S. Government/ Cash
Bond Bond AAA-Rated Management
Fund Fund Securities Fund Fund Total
Unrealized
appreciation $ 56 $ 14,311 $ 3,728 - $2,530,174
Unrealized
depreciation 990 8,162 18,768 - 179,435
Net unrealized
appreciation
(depreciation) (934) 6,149 (15,040) - 2,350,739
Cost of portfolio
securities 37,989 574,830 531,410 $208,615 10,286,314
</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; International Fund
- - 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; 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; Bond Fund - 0.60% of the
first $30 million of average net assets; and 0.50% of such assets in excess of
$30 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.
Trustees 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, 1996,
aggregate amounts deferred and earnings thereon were $83,000.
<TABLE>
<CAPTION>
4.
(dollars in
thousands)
Growth- Asset
Growth Interna- Income Allocation
Fund tional Fund Fund Fund
<S> <C> <C> <C> <C> <C>
As of May 31,
1996:
Accumulated
undistributed
net realized
gain (loss) on
investments $ 139,666 $ 32,537 $ 145,878 $ 52,249
Paid-in capital 2,583,158 1,731,556 3,396,722 821,504
For the six months
ended May 31,
1996:
Purchases of
investment
securities /1/ 801,612 646,664 877,334 252,062
Sales of invest-
ment securities /1/ 399,399 237,745 492,518 248,911
High-Yield U.S. Government/ Cash
Bond Bond AAA-Rated Management
Fund Fund Securities Fund Fund Total
As of May 31,
1996:
Accumulated
undistributed
net realized
gain (loss) on
investments $ (22) $ (9,089) $ (8,866) - $ 352,353
Paid-in capital 37,779 576,815 526,552 $205,890 9,879,976
For the six months
ended May 31,
1996:
Purchases of
investment
securities /1/ 35,703 /2/ 122,391 98,455 - 2,834,221
Sales of invest-
ment securities /1/ 5,885 /2/ 102,252 71,279 - 1,557,989
/1/ Excludes short- term securities
/2/ For the period January 2, 1996, commencement of operations, through May 31, 1996.
</TABLE>
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, 1996, such non-U.S. taxes
were $2,834,000. Net realized currency gains on dividends, interest,
withholding taxes reclaimable, and sales of non-U.S. bonds and notes were
$928,000 for the six months ended May 31, 1996.
The funds may enter into forward currency contracts, which represent an
agreement to exchange currencies of different countries at a specified future
date at a specified rate. The funds enter into these contracts to reduce their
exposure to fluctuations in foreign exchange rates arising from investments
denominated in non-U.S. currencies. The funds' use of forward currency
contracts involves market risk in excess of the amount recognized in the
statement of assets and liabilities. The contracts are recorded in the
statement of assets and liabilities at their net unrealized value. The face or
contract amount in U.S. dollars reflects the total exposure the funds have in
that particular contract. Losses may arise upon entering these contracts from
the potential inability of counterparties to meet the terms of their contracts
and from possible movements in non-U.S. exchange rates and securities values
underlying these instruments. At May 31, 1996, the Bond Fund had an
outstanding forward currency contract to sell non-U.S. currency as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Non-U.S. Currency Sale Contract U.S. Valuation
Contract Amount at 5/31/96
Unrealized
Non-U.S. U.S. Amount Appreciation
--------- ------- --------------- ------------
Deutsche Marks expiring 1/8/97 DM275,000 $185,000 $183,000 $2,000
</TABLE>
<TABLE>
PER-SHARE DATA AND RATIOS
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
Period beginning ment on 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
1991 $19.98 $ .41 $ 4.48 $ 4.89 $ (.47) $ (.22) $ (.69)
1992 24.18 .29 4.25 4.54 (.31) /4/ - (.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 .33 10.63 10.96 (.29) (.80) (1.09)
1996 41.81 .13 2.77 2.90 (.18) (3.40) (3.58)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $24.18 24.90% $ 700 0.56% 1.94% 6.81 cents 9.83%
1992 28.41 18.90 1,212 .53 1.15 6.89 11.15
1993 32.34 15.59 1,737 .50 .86 6.43 20.40
1994 31.94 2.92 2,027 .49 .78 6.09 29.58
1995 41.81 35.35 3,154 .47 .92 5.91 35.47
1996 41.13 7.72 /5/ 3,632 .22 /5/ .34 /5/ 5.57 13.40 /5/
Interna-
tional Fund
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
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 .34 1.02 1.36 (.33) (.41) (.74)
1996 13.89 .18 1.18 1.36 (.13) (.29) (.42)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $10.02 8.67% $ 197 1.04% 2.62% 2.43 cents 8.21%
1992 9.89 .90 360 1.00 2.11 1.22 16.73
1993 12.40 27.20 840 .96 1.75 .23 17.70
1994 13.27 10.48 1,405 .80 2.03 1.01 19.66
1995 13.89 10.78 1,703 .75 2.64 .16 24.66
1996 14.83 10.06 /5/ 2,099 .35 /5/ 1.30 /5/ 1.54 14.98 /5/
Growth-
Income Fund
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
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 .73 7.20 7.93 (.73) (1.03) (1.76)
1996 31.47 .36 2.51 2.87 (.38) (1.26) (1.64)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $21.72 17.83% $1,022 0.56% 3.80% 7.23 cents 11.14%
1992 24.17 15.90 1,704 .52 3.01 7.46 13.60
1993 26.01 11.63 2,436 .49 2.66 7.02 24.93
1994 25.30 3.21 2,740 .47 2.72 6.39 29.26
1995 31.47 33.14 3,953 .44 2.70 6.21 26.91
1996 32.70 9.55 /5/ 4,590 .21 /5/ 1.19 /5/ 6.03 13.37 /5/
Asset
Allocation
Fund
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
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 .50 2.69 3.19 (.50) (.17) (.67)
1996 13.77 .26 .72 .98 (.26) (.48) (.74)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $10.59 17.63% $ 194 0.59% 5.56% 7.42 cents 15.08%
1992 11.47 13.69 359 .57 4.73 7.12 19.74
1993 12.01 10.59 578 .55 4.66 6.85 19.01
1994 11.25 (.54) 637 .53 4.55 6.38 36.13
1995 13.77 29.45 870 .52 4.11 6.27 39.89
1996 14.01 7.43 /5/ 1,001 .25 /5/ 1.93 /5/ 5.85 29.98 /5/
Bond
Fund /6/
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
1996 $10.00 $ .13 $ (.38) $ (.25) - - -
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1996 $ 9.75 (2.50)% /5/ $ 37 .25% /5/ 2.65% /5/ - 38.86% /5/
High-Yield
Bond Fund
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
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 1.32 1.10 2.42 (1.32) - (1.32)
1996 13.99 .65 .12 .77 (.66) - (.66)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $13.53 26.22% $ 107 0.63% 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 13.99 19.81 534 .54 10.12 - 31.73
1996 14.10 5.63 /5/ 587 .27 /5/ 4.69 /5/ - 19.45 /5/
U.S. Govern-
ment/AAA-
Rated Secu-
rities Fund
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
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 .82 .71 1.53 (.81) - (.81)
1996 11.52 .41 (.59) (.18) (.40) - (.40)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $11.22 13.24% $ 240 0.58% 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 11.52 14.73 542 .54 7.37 - 30.11
1996 10.94 (1.62) /5/ 513 .27 /5/ 3.60 /5/ - 14.43 /5/
Cash
Management
Fund
Net Total Distri-
realized & income Dividends butions
Net asset Net unrealized from from net from
value, invest- gain (loss) invest- invest- net Total
beginning ment on invest- ment ment realized distri-
of period income ments operations income gains butions
--------- --------- --------- --------- --------- --------- ---------
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 .63 (.02) .61 (.59) - (.59)
1996 11.11 .27 .01 .28 (.27) - (.27)
Ratio
Net asset Net assets, Ratio of of net Average
value, end of expenses income to commissions Portfolio
end of Total period (in to average average paid per turnover
period return millions) net assets net assets share /2/ /3/ rate
--------- --------- --------- --------- --------- --------- ---------
1991 $11.11 5.84% $ 163 0.58% 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 11.11 5.65 193 .49 5.37 - -
1996 11.12 2.56 /5/ 208 .24 /5/ 2.50 /5/ - -
/1/ The periods ended 1991 through 1995 represent fiscal years ended November 30; the
period ended 1996 represents the six months ended May 31, 1996 (unaudited).
/2/ Unaudited
/3/ Brokerage commissions paid on portfolio transactions increase the cost of
securities purchased or reduce the proceeds of securities sold, and are not reflected
in the funds' statement of operations. Shares traded on a principal basis, such as most
over-the-counter and fixed-income transactions, are excluded. Generally, non-U.S. commissions
are lower than U.S. commissions when expressed as cents per share but higher when
expressed as a percentage of transactions because of the lower per-share
prices of many non-U.S. securities.
/4/ Amount includes net realized short-term gains treated as net
investment income for federal income tax purposes.
/5/ Based on operations for the period shown and, accordingly, not
representative of a full year's operations.
/6/ Commenced operations January 2, 1996.
</TABLE>
American Variable Insurance Series
Board of Trustees
CHARLES H. BLACK
Pacific Palisades, California
Private investor and consultant; former
Executive Vice President and Director,
KaiserSteel Corporation
H. FREDERICK CHRISTIE
Rolling Hills 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.
KIRK P. PENDLETON
Southampton, Pennsylvania
President, Cairnwood, Inc.
(venture capital investment)
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 retired from the Board of Trustees effective December 31, 1995.
He had been a member of the Board since 1991. The Trustees thank him for his
many contributions to the series.
KIRK P. PENDLETON was elected to the Board of Trustees effective June 19, 1996.
AMERICAN VARIABLE INSURANCE SERIES
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 92821-5804
CUSTODIAN OF ASSETS
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02105-1713
COUNSEL
Morrison & Foerster LLP
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, 1996, this report must be accompanied by
an American Legacy II Statistical Update for the most recently completed
calendar quarter.
Litho in USA AGD/GRS/3013
(C)1996 American Funds Distributors, Inc.
Lit. No. VI-013-0796
Printed on recycled paper
