American Variable Insurance Series
[cover: photo cube with photos depicting automobile manufacturing plant,
factory, globe, satellite, computer analyst
Semi-Annual Report
for the six months ended May 31, 1998
Lit. No. VI-013-0798
Fund Results at a Glance
American Variable Insurance Series(r)
American Variable Insurance Series is the underlying investment vehicle for the
American Legacy II variable annuity and other insurance contracts.
<TABLE>
<CAPTION>
Portfolio period periods ended 6/30/98
begins on ended
page 5/31/98
6-Month 1-Year 5-Year 10-Year
Total Total Average Average
Return Return Annual Annual
Compound Compound
Return Return
<S> <C> <C> <C> <C> <C>
6 GLOBAL GROWTH FUND (since 4/30/97) +17.97% +21.25% +24.98%* -
10 GLOBAL SMALL CAPITALIZATION FUND -5.21%* -4.55%* - -
(since 4/30/98)
13 GROWTH FUND +13.64% +35.17% +20.60% +17.16%
18 INTERNATIONAL FUND (since 5/1/90) +19.14% +9.72% +16.28% +11.73%*
25 GROWTH-INCOME FUND +12.15% +22.06% +19.23% +15.50%
31 ASSET ALLOCATION FUND (since +11.79% +20.22% +15.89% +13.06%*
8/1/89)
39 BOND FUND (since 1/2/96) +4.24% +9.75 +7.97%* -
45 HIGH-YIELD BOND FUND +5.49% +10.91% +9.96% +11.62%
52 U.S. GOVERNMENT/AAA-RATED +3.73% +9.62% +5.63% +8.14%
SECURITIES FUND
55 CASH MANAGEMENT FUND +2.56% +5.22% +4.72% +5.42%
</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, 1998, cover the first half of our current
fiscal year. Investment results as of June 30, 1998, are as of the end of the
most recent calendar quarter.
As of June 30, 1998, the Cash Management Fund's annualized seven-day yield was
4.55%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE 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.
INVESTING OUTSIDE THE UNITED STATES IS SUBJECT TO ADDITIONAL RISKS, SUCH AS
CURRENCY FLUCTUATIONS OR POLITICAL INSTABILITY, WHICH ARE DETAILED IN THE
PROSPECTUS.
ABOUT OUR COVER: Managing American Legacy's 10 variable funds requires
flexibility, a broad perspective and a wealth of expertise. Capital Research
and Management Company, the funds' investment adviser, has been meeting the
challenge of finding strength in diversity for more than 65 years.
DEAR INVESTORS:
This report covers the first half of fiscal 1998 - the six months ended May 31
- - for American Variable Insurance Series, which serves as the underlying
investment vehicle for the American Legacy variable annuities and other
insurance products.
Throughout the period, Asia's financial crisis continued to dominate headlines,
obscuring extremely strong gains in most major world markets as they staged a
comeback from October's precipitous declines. Investors mostly shrugged off
concerns about how Asia's troubles might affect global businesses. Instead,
they focused on more positive news: robust corporate earnings, a wave of merger
activity, rising consumer spending and a generally favorable U.S. economic
environment. The unmanaged Standard & Poor's 500 Composite Index, which tracks
the largest U.S. stocks, returned 15.0% with dividends reinvested, while in
Europe stock prices surpassed even this impressive gain. U.S. bonds also did
well, benefiting from a "virtuous circle" of low inflation, falling interest
rates and increased investment. The unmanaged Salomon Brothers Broad
Investment-Grade Bond Index increased 4.2% on a reinvested basis for the six
months.
Not surprisingly, Asia was a glaring exception to the generally favorable
market news. An economic slowdown in virtually every Asian country continued to
depress currency values and sap financial markets. On a broader scale, the
region poses the biggest risk to a generally healthy global economy; shrinking
demand in Asia is already squeezing profits of some companies in the U.S. and
Europe.
In this environment, all but one of the series' funds gained ground during the
six-month period. These increases, and the addition of new contractholder
accounts, pushed net assets of the series to more than $19 billion.
We have also expanded our portfolio of choices. The Global Small Capitalization
Fund is the series' 10th investment option. It invests in smaller companies,
allowing contractholders to participate in some of the world's most dynamic
growth opportunities.
Global Growth Fund
Where the Fund's Assets Are Invested
(as of 5/31/98)
<TABLE>
<CAPTION>
Percent of
Net Assets
<S> <C>
THE AMERICAS
United States 32.5%
Canada 5.4
Argentina 1.9
Mexico 1.3
Other Americas .6
41.7
EUROPE
United Kingdom 12.4
Germany 5.3
France 3.9
Spain 3.4
Sweden 2.6
Finland 1.3
Italy 1.3
Norway 1.1
Denmark .6
Portugal .6
Other Europe .4
32.9
ASIA/PACIFIC
Japan 6.4
Australia 2.7
New Zealand .7
People's Republic of China .6
10.4
OTHER COUNTRIES 1.8
Cash & Equivalents 13.2
Total 100.0%
</TABLE>
Here are brief comments on each of the funds:
THE GLOBAL GROWTH FUND increased 18.0% for the six months ended May 31. In
Europe, where one-third of net assets was invested, stock prices surged before
declining slightly at the close of the period. Italian equities increased 51%
in U.S. dollar terms; Spain, France and Germany returned 47%, 41% and 36%,
respectively; the U.K. rose 18% in dollars. The impact of these increases on
the fund's results was significant: Together, these five countries accounted
for more than one-quarter of net assets. Another third of the fund's
investments was in U.S. companies, with the balance in other countries and cash
and equivalents. Good stock selection is paramount, regardless of short-term
market movements, and we are pleased to note that many of the fund's largest
holdings - including America Online (+120.7%), Mannesmann (+110.2%) and
Rentokil Group (+64.2%) - posted extraordinary six-month gains. At the close of
the period, the fund held 98 companies based in 23 countries. Net assets rose
to more than $200 million, allowing us to add to current holdings as well as
purchase stocks of new companies. You can find a list of new holdings on page
9.
THE GLOBAL SMALL CAPITALIZATION FUND is the series' newest investment option.
For the one month since its inception on April 30, the fund posted a decline of
5.2%, mainly due to volatility among technology stocks. Sudden downturns are
typical of the sector; the upside is the potential for growth over longer, more
meaningful periods. These characteristics are typical of smaller companies in
general, many of which are innovative businesses on the cutting edge of their
industries. Of course, smaller companies demand more intensive research than
their larger counterparts since there are so many of them and information is
not as readily available. In that regard, the fund's analysts have been
carefully sifting through thousands of investment opportunities around the
world to find securities we believe are most appropriate for the portfolio. The
fund will be broadly diversified, emphasizing companies with a market
capitalization (the total value of outstanding shares) between $50 million and
$1.2 billion. As of May 31, the fund had investments in 73 companies based in
17 countries. Larger holdings included Westwood One, an American distributor of
radio programs; Dr Solomon's, a British software company; and Laurentian Bank,
based in Canada. We invite you to familiarize yourself with the fund by looking
through the portfolio listing that begins on page 10.
THE GROWTH FUND, which invests primarily in U.S. stocks, recorded a six-month
gain of 13.6%. Once again, many of the fund's larger holdings did extremely
well. That was particularly true among the fund's media investments, which
constituted the portfolio's biggest industry concentration. Viacom, our
third-largest holding, rose from the doldrums to post a 57.1% return. Other
entertainment companies that rose in price were Tele-Communications/Liberty
Media (+46.7%), Time Warner (+33.6%) and Disney (+19.2%). The fund's largest
holding, America Online, rose an astonishing 120.7%. At the other end of the
spectrum, technology companies saw a slight slowdown due to shrinking demand in
Asia and an inventory "correction" working its way through the industry. Among
the stocks that suffered losses were Oracle (-29.1%) and Intel (->8.0%). In
all, the fund held 160 stocks in a broad range of industries. About 95% of net
assets was invested in stocks; the remaining 5% was held in cash and
equivalents as a buying reserve.
THE INTERNATIONAL FUND'S 19.1% return was the series' highest for the period.
With nearly two-thirds of net assets invested in Europe, the fund was
well-positioned to take advantage of the broad market run-up there. A number of
factors were responsible for the surge in stock prices: a wave of industry
consolidations; a strong U.S. dollar, which made European manufacturers more
competitive; and fiscal belt-tightening by governments eager to qualify for
monetary union. Nine of the fund's 10 largest holdings were based in Europe.
Among these, telecommunications-related issues - Portugal's TELECEL (+91.6%),
Nokia (+62.7%), Telefonica of Spain (+55.2%), France Telecom (+52.7%) and
Ericsson (+39.8%) - did particularly well. Meanwhile, Asian markets continued
to slide. Japan, still struggling with a banking crisis, a weakening yen and
stubborn economic problems, saw equities decline 9% in dollar terms. Stocks in
Hong Kong dropped a steep 21%. While we were not immune to losses in these
markets, the fund's Asian investments were relatively small at 14% of net
assets and tended to emphasize export-oriented companies such as Sony Music
(+21.0%) and Mazda (+19.8%), which were helped by a strong U.S. dollar.
International Fund
Where the Fund's Assets Are Invested
(as of 5/31/98)
<TABLE>
<CAPTION>
Percent of
Net Assets
<S> <C>
EUROPE
United Kingdom 13.9%
France 9.1
Germany 6.3
Sweden 5.6
Spain 4.7
Finland 4.5
Switzerland 4.3
Netherlands 3.7
Italy 3.6
Norway 2.7
Portugal 2.4
Luxembourg 1.2
Denmark .6
Greece .6
Other Europe .6
63.8
ASIA/PACIFIC
Japan 7.9
Australia 3.7
Hong Kong 2.5
Philippines 1.4
People's Republic of China .7
South Korea .5
Other Asia/Pacific .8
17.5
THE AMERICAS
Canada 5.3
Mexico 3.4
Brazil 1.3
Argentina .5
Other Americas .7
11.2
OTHER COUNTRIES 1.6
Cash & Equivalents 5.9
Total 100.0%
</TABLE>
THE GROWTH-INCOME FUND increased 12.1%. The vigorous U.S. economy proved a boon
for American businesses, many of which saw their earnings - and stock prices -
climb with strengthening consumer demand. Jobs are plentiful, credit cheap and
the cost of goods relatively stable, a combination which helped boost auto
manufacturers Ford (+81.0%) and Chrysler (+62.1%); retailers Limited (+38.2%)
and Wal-Mart (+38.2%); and makers of recreational items such as Harley-Davidson
(+35.2%). Another successful area was pharmaceuticals. Three large holdings -
Pfizer (+44.1%), Warner-Lambert (+36.9%) and Schering-Plough (+33.5%) - enjoyed
substantial appreciation during the period. Energy companies, on the other
hand, were a disappointment. Most suffered setbacks caused by falling oil
prices. In all, of 170 stocks held over the full six-month period, 119 rose in
price and 51 declined.
Approximately 90% of the portfolio was held in equities, with the balance in
short-term instruments as a buying reserve.
THE ASSET ALLOCATION FUND rose 11.8% for the six months. The fund is managed as
though it constitutes the complete U.S. portfolio of a prudent investor, with
holdings in all three major asset classes. As of May 31, the fund's composition
reflected the relative gains in each market: 60% of net assets was held in
equities, 30% in bonds and the remaining 10% in cash and equivalents. The stock
portion emphasizes large, well-managed firms in historically stable industries,
such as health care, energy and financial services. The latter in particular
was caught up in a wave of merger activity that reached fever pitch during the
period. Motivated in part by a rising stock market, banks, insurance companies
and investment firms sought alliances to stay competitive. Among them were
Citicorp (+24.3%), which is merging with Travelers, and BankAmerica (+13.3%),
which has announced plans to consolidate with NationsBank (+26.1%). On the
fixed-income side, the fund is invested in corporate bonds and U.S. Treasury
securities. With interest rates low, many of these instruments rose in price,
contributing to the fund's overall return.
THE BOND FUND had a 4.2% return, reflecting the rise in bond prices during the
period. Inflationary pressures remained subdued even as the U.S. economy
continued to flourish. Volatility in the stock market provided an additional
boost to bonds by sending investors to the relatively safe haven of
fixed-income securities. The fund, which is well-diversified across a wide
spectrum of bonds, benefited from these broad market gains. The lion's share of
the portfolio was held in corporate bonds, including a number of lower rated
instruments that offer higher yields to compensate for their greater risk of
default. U.S. Treasury securities, which enjoyed substantial price appreciation
during the six months, accounted for about 17% of net assets. A small portion
of the portfolio, about 5% of net assets, was in bonds denominated in non-U.S.
currencies. We continue to carefully research all areas of the bond market in
an effort to find attractive securities. With interest rates low, corporate
debt issuance has been at near-record levels. We have taken this opportunity to
add significantly to our holdings in this sector. As a result, our cash and
equivalents position was 10%, down from 21% six months ago.
THE HIGH-YIELD BOND FUND increased 5.5% as demand for lower rated securities
continued to grow. With interest rates at historically low levels, investors
have looked to these bonds - typically rated Ba and BB or below - for higher
yields than they would receive from investment-grade or Treasury issues. At the
same time, the robust U.S. economy and a strong stock market have improved the
balance sheets of many debt issuers, boosting the value of their bonds. In an
expanding market crowded with bonds offering similar yields, proprietary
research is critical. That is why we pay close attention to company
fundamentals, with an eye toward capital appreciation in addition to yield.
Because we select securities on an issue-by-issue basis, the portfolio is
broadly diversified. Our holdings cut a broad swath across sectors and
geographic borders. For example, among our largest holdings you will find NTL,
a British-American communications firm; U.S.-based Chancellor Media, an
operator of radio stations; and COLT Telecom of the U.K., which provides
telecommunications services for corporate clients across Europe.
THE U.S. GOVERNMENT/AAA-RATED SECURITIES FUND registered a 3.7% gain,
reflecting investor optimism that, with inflation rates near their lowest
levels in 30 years, the Federal Reserve Board would not raise short-term
interest rates. A so-called "flight to quality" from Asian securities to the
refuge of dollar-denominated government bonds set off a rally that pushed
yields on the benchmark 30-year Treasury bond down to a January low of 5.7%. As
of May 31, 37% of net assets was held in U.S. Treasuries. The fund also
maintains a large position in mortgage-backed securities. These bonds typically
pay a higher yield in exchange for prepayment risk, and indeed, many mortgage
holders took advantage of low interest rates during the period to refinance
their loans. We spend considerable time trying to minimize the impact of
unexpected changes in prepayment rates - by buying older, "seasoned" mortgages,
which are less likely to be refinanced, or investing in pools of
adjustable-rate mortgages that have tended to be less volatile than their
fixed-rate counterparts.
THE CASH MANAGEMENT FUND provided a return of 2.6%. Convinced that the
turbulence in Asia would help take some steam out of a possibly overheating
U.S. economy, the Federal Reserve chose not to tighten credit. As a result,
short-term rates remained relatively flat during the six months, even as
interest rates on longer term bonds declined sharply. One consequence of this
convergence of long- and short-term rates has been that money markets currently
provide a fairly high yield at significantly lower risk. More important, of
course, is the role this fund can play in a long-term investment portfolio.
Managed for relatively stable value and a reasonable rate of return, it can be
an important diversification tool, as well as a base for making regular
investments into other funds. The fund maintains a high-quality orientation by
concentrating assets in top-grade commercial paper, all of which carry the
highest credit rating from Standard & Poor's or Moody's.
With the exception of Asia, the past half-year has seen yet another upsurge for
financial markets. While it is always gratifying to report extraordinary
results, we would remind investors that recent returns have been just that -
out of the ordinary. These high rates of return cannot be sustained
indefinitely, and indeed, world markets experienced sharp declines in June,
after the close of the reporting period, before recovering somewhat in July. We
would therefore urge you to maintain realistic expectations as you work toward
achieving your long-term goals.
We look forward to reporting to you again in six months.
Cordially,
[/s/ Thomas E. Terry]
Thomas E. Terry
Chairman of the Board
American Variable Insurance Series
[/s/ James F. Rothenberg]
James F. Rothenberg
President
American Variable Insurance Series
July 15, 1998
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES GLOBAL GROWTH FUND
Investment Portfolio, May 31, 1998
(Unaudited)
<S> <C> <C> <C> <C>
Where the Fund's Assets Are Invested
Percent of
Net Assets
-----------
The Americas 41.70%
Europe 32.90%
Asia/Pacific 10.41%
Other Countries 1.82%
Cash & Equivalents 13.17%
100.00%
Largest Individual Stocks
Zeneca Group 4.11%
Telefonica 3.43
America Online 2.77
Rentokil Group 2.34
Cendant 2.18
ForeningsSparbanken 2.16
Mannesmann 2.13
Bank of Nova Scotia 1.98
Telecom Argentina STET-France Telecom 1.95
Viacom 1.94
Market Market Percent
Number of Value Value of Net
Stocks (common and preferred) Shares (000) (000) Assets
- --------------------------------------------------------------- -------------------- ----------- -----------
BUSINESS & PUBLIC SERVICES - 11.12%
America Online, Inc. (USA) (1) 68,000 $5,665 5,665,250 2.77%
Rentokil Group PLC (United Kingdom) 690,800 4777 4,776,973 2.34
Cendant Corp. (formerly CUC International Inc.) (USA) (1) 206,000 4468 4,467,625 2.18
CKS Group, Inc. (USA) (1) 175,000 3500 3,500,000 1.71
Reuters Group PLC (United Kingdom) 240,140 2765 2,764,986 1.35
Vivendi (formerly Cie. Generale des Eaux) (France) 11,800 2372 2,371,839 1.16
Brambles Industries Ltd. (Australia) 90,200 1828 1,828,303 .89
Ratin, A/S Class B (Denmark) 6,300 1241 1,241,507 .61
USA Waste Services, Inc. (USA) (1) 25,000 1180 1,179,688 .58
Columbia/HCA Healthcare Corp. (USA) 19,000 621 621,063 .30
TELECOMMUNICATIONS - 13.64%
Telefonica SA (American Depositary Receipts) (Spain) 51,990 6993 6,992,655
Telefonica SA 545 24 24,361 3.43
Mannesmann AG (Germany) 4,450 4351 4,350,524 2.13
Telecom Argentina STET-France Telecom SA, Class B
(American Depositary Receipts) (Argentina) 128,500 3984 3,983,500 1.95
Telecom Italia SpA, nonconvertible savings shares (Italy) 445,000 2403 2,402,944 1.17
Orange PLC (United Kingdom) (1) 262,000 1968 1,968,333 .96
AirTouch Communications (USA) (1) 37,500 1786 1,785,938 .87
Cable & Wireless Communications PLC (United Kingdom) 211,100 1627 1,627,307 .80
TELECEL - Comunicacoes Pessoais, SA (Portugal) 6,700 1174 998,905 .58
China Telecom (Hong Kong) Ltd. (American Depositary
Receipts) (Peoples Republic of China) (1) 31,000 1105 1,104,375 .54
France Telecom, SA (France) 19,400 1087 1,087,114 .53
Millicom International Cellular SA (Luxembourg) (1) 14,000 544 544,250 .27
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) (Mexico) 10,800 512 512,325 .25
Compania de Telecomunicaciones de Chile SA
(American Depositary Receipts) (Chile) 15,000 333 332,813 .16
HEALTH & PERSONAL CARE - 7.99%
Zeneca Group PLC (United Kingdom) 203,960 8291 8,291,045
Zeneca Group PLC (American Depositary Receipts) 3,000 124 124,125 4.11
Avon Products, Inc. (USA) 37,900 3101 3,100,694 1.51
Pfizer Inc (USA) 27,650 2898 2,898,066 1.42
Glaxo Wellcome PLC (United Kingdom) 52,900 1447 1,447,138 .71
Omnicare, Inc. (USA) 14,000 491 490,875 .24
BROADCASTING & PUBLISHING - 6.63%
Viacom Inc., Class B (USA) (1) 72,000 3960 3,960,000 1.94
Time Warner Inc. (USA) 50,500 3929 3,929,531 1.92
ProSieben Media AG (Germany) (1) 36,000 1795 1,795,059 .88
Sinclair Broadcast Group, Inc., Class A (USA) (1) 53,800 1369 1,368,538 .67
Ziff-Davis Inc.(USA) (1) 60,000 1013 1,012,500 .49
TV Azteca, SA de CV (American Depositary
Receipts) (Mexico) 57,330 828 827,702 .40
SOFTBANK Corp. (Japan) 17,600 672 672,676 .33
ELECTRONIC COMPONENTS - 6.19%
Rohm Co., Ltd. (Japan) 23,000 2388 2,388,404 1.17
Murata Manufacturing Co., Ltd. (Japan) 74,000 2140 2,139,900 1.05
Microchip Technology Inc. (USA) (1) 85,000 2083 2,082,500 1.02
Texas Instruments Inc. (USA) 39,000 2004 2,003,625 .97
Micron Technology, Inc. (USA) (1) 61,100 1440 1,439,669 .70
Intel Corp. (USA) 14,000 1000 1,000,125 .49
Altera Corp. (USA) (1) 27,500 925 924,688 .45
Kyocera Corp. (Japan) 9,500 463 463,114 .23
Advanced Micro Devices, Inc. (USA) (1) 11,650 227 227,175 .11
BANKING - 5.47%
ForeningsSparbanken AB, Class A (Sweden) 147,200 4421 4,420,674 2.16
Bank of Nova Scotia (Canada) 151,000 4044 4,044,365 1.98
Washington Mutual, Inc. (USA) 25,000 1766 1,765,625 .86
Westpac Banking Corp.(Australia) 145,000 957 957,012 .47
AUTOMOBILES - 3.53%
Bayerische Motoren Werke AG (Germany) 2,200 2327 2,327,077
Bayerische Motoren Werke AG 440 460 1.36
Suzuki Motor Corp. (Japan) 281,000 2288 2,287,798 1.11
Chrysler Corp. (USA) 38,800 2158 2,158,250 1.06
DATA PROCESSING & REPRODUCTION - 3.48%
Microsoft Corp. (USA) (1) 30,000 2545 2,544,375 1.24
Oracle Corp. (USA) (1) 107,600 2542 2,542,050 1.24
Dassault Systemes SA (France) 29,600 1381 1,381,003 .68
Rambus Inc. (USA) (1) 17,000 657 657,156 .32
LEISURE & TOURISM - 2.91%
Village Roadshow Ltd., Class A,
5.50% preferred shares (Australia) 1,016,000 1621 1,620,804 .79
Host Marriott Corp. (USA) (1) 65,000 1251 1,251,250 .61
Walt Disney Co. (USA) 10,225 1156 1,156,703 .57
Carnival Corp., Class A (USA) 15,350 1040 1,039,963 .51
King World Productions, Inc. (USA) (1) 34,500 880 879,750 .43
MERCHANDISING - 2.69%
Consolidated Stores Corp. (USA) (1) 55,000 2100 2,100,313 1.03
Home Depot, Inc. (USA) 20,000 1571 1,571,250 .77
Viking Office Products, Inc. (USA) (1) 33,800 967 966,469 .47
Cifra, SA de CV (American Depositary
Receipts) (Mexico) (1) 60,000 855 855,000 .42
ENERGY SOURCES - 2.27%
Fletcher Challenge Energy (New Zealand) 467,088 1476 1,475,741 .72
Oryx Energy Co. (USA) (1) 59,000 1375 1,375,438 .67
Woodside Petroleum Ltd. (Australia) 142,000 816 815,507 .40
TOTAL, Class B (American Depositary
Receipts) (France) 9,600 598 598,200 .29
Oil Co. LUKoil (American Depositary
Receipts) (Russia) 9,200 377 377,200 .19
CHEMICALS - 2.01%
Monsanto Co. (USA) 40,000 2215 2,215,000 1.08
BOC Group PLC (United Kingdom) 80,000 1267 1,267,363 .62
Valspar Corp. (USA) 15,600 630 629,850 .31
ELECTRICAL & ELECTRONICS - 1.95%
Northern Telecom Ltd. (Canada) 22,400 1433 1,433,600 .70
Nokia Corp., Class A (American
Depositary Receipts) (Finland) 20,000 1299 1,298,750 .63
Thomson-CSF (France) 31,300 1267 1,266,656 .62
MULTI-INDUSTRY - 1.69%
Orkla AS, Class A (Norway) 62,000 1411 1,410,923 .69
Suez Lyonnaise des Eaux (France) 7,000 1195 1,195,151 .58
Incentive AB, Class A (Sweden) 9,600 856 855,733 .42
AEROSPACE & MILITARY TECHNOLOGY - 1.56%
Bombardier Inc., Class B (Canada) 85,000 2186 2,186,148 1.07
General Motors Corp., Class H (USA) 12,700 628 628,650 .31
Raytheon Co., Class A (USA) 7,142 381 380,758 .18
ENERGY EQUIPMENT - 1.31%
Schlumberger Ltd. (Netherlands Antilles) 34,200 2670 2,669,738 1.31
APPLIANCES & HOUSEHOLD DURABLES - 1.18%
Sony Corp. (Japan) 28,600 2413 2,413,067 1.18
METALS: NONFERROUS - 1.14%
Aluminum Co. of America (USA) 11,000 763 763,125 .37
Freeport-McMoRan Copper & Gold Inc.,
Class B (USA) 35,000 586 586,250 .29
Rio Tinto PLC (United Kingdom) 46,400 580 580,100 .28
Inco Ltd. (Canada) 28,000 403 402,500 .20
RECREATION & OTHER CONSUMER PRODUCTS - 1.14%
EMI Group PLC (United Kingdom) 275,000 2326 2,326,493 1.14
BEVERAGES & TOBACCO - 0.96%
Seagram Co. Ltd. (Canada) 25,000 1098 1,098,438 .54
Grupo Industrial Emprex-B (formerly Fomento
Economico Mexicano, SA de CV) (Mexico) (1) 15,000 502 501,985 .24
Coca-Cola Amatil Ltd. (Australia) 50,728 373 372,891 .18
INSURANCE - 0.94%
Fairfax Financial Holdings Ltd. (Canada) (1) 5,000 1930 192,981 .94
FOOD & HOUSEHOLD PRODUCTS - 0.67%
Raisio Group PLC (Finland) 7,300 1366 1,366,159 .67
ELECTRONIC INSTRUMENTS - 0.53%
ADVANTEST Corp. (Japan) 17,600 1086 1,086,435 .53
FINANCIAL SERVICES - 0.39%
Credicorp Ltd. (Peru) 50,600 803 803,275 .39
MACHINERY & ENGINEERING - 0.39%
Kvaerner AS, Class A (Norway) 20,600 778 777,673 .39
TEXTILES & APPAREL - 0.28%
Nine West Group Inc. (USA) (1) 20,000 564 563,750 .28
REAL ESTATE - 0.02%
Mandamus AB (Sweden) (2) 7,360 47 46,929 .02
MISCELLANEOUS - 1.98%
Other stocks in initial period of acquisition 259,840 4039 4,038,873 1.98
--------- ----------- -----------
TOTAL STOCKS (cost: $154,102,000) 177620 175,247,940 84.06
--------- ----------- -----------
Principal Market
Amount Value
Short-Term Securities (000) (000)
- --------------------------------------------------------------- -------------------- ----------- -----------
CORPORATE SHORT-TERM NOTES - 12.76%
Minnesota Mining and Manufacturing Co. 5.47% due 6/9/98 4,500 4494 4,493,846 2.20
Ford Motor Credit Co. 5.48% due 6/17/98 3,300 3291 3,291,460 1.61
British Telecommunications PLC 5.48% due 6/24/98 3,185 3173 3,173,364 1.55
Canadian Wheat Board 5.47% due 6/10/98 2,300 2296 2,296,505 1.12
Coca-Cola Co. 5.49% due 7/24/98 2,000 1984 1,983,530 .97
Deutsche Bank Financial Inc. 5.51% due 7/23/98 2,000 1984 1,983,806 .97
H.J. Heinz Co. 5.48% due 6/19/98 1,700 1695 1,695,083 .83
Kimberly-Clark Corp. 5.49% due 7/17/98 (3) 1,700 1688 1,687,815 .83
Campbell Soup Co. 5.49% due 7/13/98 1,600 1590 1,589,508 .78
Abbott Laboratories 5.49% due 6/16/98 1,300 1297 1,296,828 .63
Bell Atlantic Financial Services, Inc. 5.50% due 6/3/98 1,100 1099 1,099,496 .54
Repsol International Finance BV 5.50% due 6/29/98 1,000 996 995,569 .48
Associates Corp. of North America 5.64% due 6/1/98 510 510 509,760 .25
FEDERAL AGENCY DISCOUNT NOTES - 2.18%
Fannie Mae 5.40% due 7/17/98 2,500 2482 2,482,326 1.21
Freddie Mac 5.415% due 7/7/98 2,000 1989 1,988,869 .97
--------- ----------- -----------
TOTAL SHORT-TERM SECURITIES (cost: $30,568,000) 30,568 30,567,767 14.94
--------- ----------- -----------
TOTAL INVESTMENT SECURITIES (cost: $184,670,000) 208,188 205,815,707 101.77
Excess of payables over cash and receivables 3,635 (3,634,091) 1.77
--------- ----------- -----------
NET ASSETS $204,553 202,181,616 100.00%
======== ======== ========
(1) Non-income-producing securities.
(2) Valued under procedures established by the Board of Trustees.
(3) 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
Stocks appearing in the portfolio
since November 30, 1997
ADVANTEST
Bombardier
China Telecom
CKS Group
EMI Group
Fairfax Financial Holdings
Home Depot
Intel
King World Productions
Mandamus
Microchip Technology
Microsoft
Monsanto
Nokia
Rambus
Ratin
Raytheon
Seagram
Sinclair Broadcast Group
Suez Lyonnaise des Eaux
Valspar
Westpac Banking
Ziff-Davis
Stocks eliminated from the portfolio
since November 30, 1997
Ascend Communications
HFS
Nasionale Pers Beperk
Netscape Communications
</TABLE>
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES GLOBAL SMALL CAPITALIZATION FUND
Investment Portfolio, May 31, 1998
(Unaudited)
<S> <C> <C> <C>
Where the Fund's Assets Are Invested
Percent of
Net Assets
----------
The Americas 56.50%
Europe 20.16%
Asia/Pacific 9.00%
Other Countries 1.22%
Cash & Equivalent 13.12%
100.00%
Largest Individual Stocks
Laurentian Bank of Canada 2.66%
Westwood One 2.47
Citizens Banking 2.20
HNC Software 2.16
Disco (Argentina) 2.14
Dr Solomon's Group 2.12
Platinum Software 2.09
DFS Furniture 2.09
Metro-Richelieu 1.88
Hayes Lemmerz International 1.53
Market Percent
Number of Value of Net
STOCKS (common and preferred) Shares (000) Assets
- ------------------------------------------------------------------------------------------ ----------
BUSINESS & PUBLIC SERVICES - 17.85%
Dr Solomon's Group PLC (American Depositary Receipts)
(United Kingdom) (1) 25,000 $738 2.12%
Kroll-O'Gara Co. (USA) (1) 18,700 407 1.17
USWeb Corp. (USA) (1) 19,200 406 1.17
Budget Group, Inc., Class A (USA) (1) 13,500 398 1.15
Midas, Inc. (USA) 18,700 395 1.14
Strayer Education, Inc. (USA) 11,200 392 1.13
Black Box Corp. (USA) (1) 9,700 387 1.11
Brunel International NV (Netherlands) 9,900 386 1.11
Medicis Pharmaceutical Corp., Class A (USA) (1) 9,200 375 1.08
ABR Information Services, Inc. (USA) (1) 14,600 374 1.08
International Container Terminal Services, Inc.
(Philippines) (1) 2,583,600 372 1.07
Protection One, Inc. (USA) (1) 35,000 363 1.04
NCO Group, Inc. (USA) (1) 15,100 337 .97
Corporate Services Group PLC (United Kingdom) 87,000 327 .94
Renaissance Worldwide Inc. (USA) (1) 16,900 318 .91
Four Media Co. (USA) (1) 28,100 228 .66
MERCHANDISING - 9.78%
Disco SA (American Depositary Receipts) (Argentina) (1) 21,500 744 2.14
DFS Furniture Co. PLC (United Kingdom) 172,200 726 2.09
Migros Turk TAS (Turkey) 521,600 485 1.40
Dickson Concepts (International) Ltd.
(Hong Kong--Incorporated in Bermuda) 298,000 387 1.11
GrandVision SA (France) 9,400 381 1.10
Komori Corp. (Japan) 33,000 369 1.06
Petco Animal Supplies, Inc. (USA) (1) 15,800 306 .88
DATA PROCESSING & REPRODUCTION - 9.22%
HNC Software Inc. (USA) (1) 21,700 750 2.16
Platinum Software Corp. (USA) (1) 37,900 727 2.09
Macromedia, Inc. (USA) (1) 25,900 410 1.18
Vantive Corp. (USA) (1) 11,300 304 .88
Rambus Inc. (USA) (1) 7,800 302 .87
Remedy Corp. (USA) (1) 17,300 279 .80
ARIS Corp. (USA) (1) 8,100 228 .66
Edify Corp. (USA) (1) 19,300 203 .58
BROADCASTING & PUBLISHING - 8.50%
Westwood One, Inc. (USA) (1) 32,100 859 2.47
United Television, Inc. (USA) 4,200 459 1.32
APN News and Media, Ltd.
(Australia) 310,400 451 1.30
Central European Media Enterprises Ltd., Class A
(USA - Incorporated in Bermuda) (1) 18,600 423 1.22
Sondagsavisen A/S (Denmark) 7,500 414 1.19
Jones Intercable, Inc., Class A (USA) (1) 16,200 348 1.00
ELECTRONIC COMPONENTS - 5.52%
Flextronics International Ltd.
(USA - Incorporated in Singapore) (1) 10,000 396 1.14
Level One Communications, Inc. (USA) (1) 13,700 366 1.05
Micrel, Inc. (USA) (1) 9,300 291 .84
Cymer, Inc. (USA) (1) 13,500 257 .74
Cicorel Holding AG (Switzerland) 700 227 .65
Towa Corp. (Japan) 8,500 226 .65
QPL International Holdings Ltd.
(Hong Kong - Incorporated in Bermuda) 664,000 156 .45
BANKING - 4.86%
Laurentian Bank of Canada (Canada) 39,900 925 2.66
Citizens Banking Corp. (USA) 22,100 765 2.20
FOOD & HOUSEHOLD PRODUCTS - 3.83%
Metro-Richelieu Inc., Class A (Canada) 43,700 651 1.88
Geest PLC (United Kingdom) 43,700 411 1.18
Grupo Industrial Maseca, SA de CV, Class B
(American Depositary Receipts) (Mexico) 31,300 268 .77
HEALTH & PERSONAL CARE - 2.54%
Grupo Casa Autrey, SA de CV
(American Depositary Receipts) (Mexico) 35,180 339 .97
Pharmacyclics, Inc. (USA) (1) 11,400 288 .83
Aviron (USA) (1) 9,200 257 .74
BEVERAGES & TOBACCO - 2.24%
Robert Mondavi Corp., Class A (USA) (1) 13,600 484 1.39
Quilmes Industrial SA, preferred shares
(American Depositary Receipts) (Luxembourg) 30,400 293 .85
ELECTRONIC INSTRUMENTS - 2.23%
ASM Pacific Technology Ltd. (Hong Kong) 454,000 308 .89
Disco Corp. (Japan) 10,000 264 .76
Etec Systems, Inc. (USA) (1) 5,500 201 .58
CHEMICALS - 1.90%
Gurit-Heberlein AG (Switzerland) 110 429 1.23
Kalon Group PLC (United Kingdom) 78,000 232 .67
LEISURE & TOURISM - 1.73%
Hoyts Cinemas Ltd., units (Australia) 182,300 312 .90
Cheesecake Factory Inc. (USA) (1) 14,300 289 .83
ENERGY SOURCES - 1.54%
Premier Oil PLC (United Kingdom) 397,400 302 .87
Ramco Energy PLC (United Kingdom) 21,400 232 .67
INDUSTRIAL COMPONENTS - 1.53%
Hayes Lemmerz International, Inc. (USA) (1) 13,600 533 1.53
TEXTILES & APPAREL - 1.31%
Hartmarx Corp. (USA) (1) 57,600 454 1.31
FINANCIAL SERVICES - 1.24%
Medallion Financial Corp. (USA) 17,000 429 1.24
AEROSPACE & MILITARY TECHNOLOGY - 1.14%
Alvis PLC (United Kingdom) 117,000 397 1.14
RECREATION & OTHER CONSUMER PRODUCTS - 1.05%
Metromedia International Group, Inc. (USA) (1) 26,900 363 1.05
TRANSPORTATION: SHIPPING - 1.03%
ICB Shipping AB, Class B (Sweden) 35,400 357 1.03
MACHINERY & ENGINEERING - 1.01%
KCI Konecranes International Corp. (Finland) 6,800 350 1.01
MISCELLANEOUS MATERIALS & COMMODITIES - 0.95%
SPARTECH Corp. (USA) 14,800 331 .95
REAL ESTATE - 0.89%
TBI PLC (United Kingdom) 174,100 310 .89
EQUITY COMMON TRUSTS - 0.87%
Atle AB, Class A (Sweden) 16,800 301 .87
MISCELLANEOUS - 4.12%
Other stocks in initial period of acquisition 1432 4.12
-----------------------
TOTAL STOCKS (cost: $31,925,000) 30184 86.88
-----------------------
Principal Market Percent
Amount Value of Net
SHORT-TERM SECURITIES (000) (000) Assets
- --------------------------------------------------------------- ------------- ------------ -------
CORPORATE SHORT-TERM NOTES - 9.56%
Sara Lee Corp. 5.47% due 6/11/98 $835 833 2.39
Associates Corp. of North America 5.64% due 6/1/98 590 590 1.70
General Mills, Inc. 5.50% due 6/4/98 500 500 1.44
H.J. Heinz Co. 5.49% due 6/12/98 500 499 1.44
Lucent Technologies Inc. 5.47% due 6/15/98 500 499 1.44
Emerson Electric Co. 5.48% due 6/18/98 400 399 1.15
FEDERAL AGENCY DISCOUNT NOTES - 2.58%
Freddie Mac 5.42% due 7/7/98 500 497 1.43
Federal Home Loan Banks 5.38% due 6/1/98 400 400 1.15
------------ ----------
TOTAL SHORT-TERM SECURITIES (cost: $4,217,000) 4,217 12.14
------------ ----------
TOTAL INVESTMENT SECURITIES (cost: $36,142,000) 34,401 99.02
Excess of cash and receivables over payables 341 .98
-------------------------
NET ASSETS $34,742 100.00%
======== ========
(1) Non-income-producing securities.
See Notes to Financial Statements
</TABLE>
<TABLE>
GROWTH FUND
Investment Portfolio May 31, 1998
- --------------------------------------------------------
STOCKS 95.05%
CASH &
EQUIVALENTS 4.95%
- --------------------------------------------------------
<S> <C> <C> <C>
Percent
Of Net
Largest Individual Stocks Assets
- -------------------------------------------------------- -------
America Online 5.49
Time Warner 4.86
Viacom 3.85
Walt Disney 2.99
Tele-Communications, Liberty Media Group 2.92
Tele-Communications, TCI Group 2.82
Cendant 2.38
Texas Instruments 1.89
King World Productions 1.71
Oracle 1.58
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- -------------------------------------------------------- ------- ------- -------
Broadcasting & Publishing -- 22.61%
Time Warner Inc. 3,302,575 $256,982 4.86%
Viacom Inc., Class B (1) 3,700,000 203,500 3.85
Tele-Communications, Inc., Series A,
Liberty Media Group (1) 4,680,205 154,447 2.92
Tele-Communications, Inc., Series A, TCI Group (1) 4,350,000 149,259 2.82
Comcast Corp., Class A, special stock 2,325,000 79,704 1.51
News Corp. Ltd., preferred shares
(American Depositary Receipts) (Australia) 2,102,500 45,072
News Corp. Ltd.
(American Depositary Receipts) 1,270,000 31,274 1.44
USA Networks Inc. (formerly HSN, Inc.)(1) 2,970,000 72,765 1.38
Cox Communications, Inc., Class A (1) 1,431,800 62,552 1.18
BHC Communications, Inc., Class A (1) 286,189 39,780 .75
Jones Intercable, Inc., Class A (1) 1,525,000 32,788 .62
Cablevision Systems Corp., Class A (1) 480,000 26,580 .50
United International Holdings, Inc., Class A (1) 1,180,000 19,470 .37
Adelphia Communications Corp., Class A (1) 393,400 9,343 .18
Jacor Communications, Inc. (1) 150,000 7,931 .15
Chancellor Media Corp., Class A(1) 100,000 4,181 .08
Business & Public Services -- 14.20%
America Online, Inc. (1) 3,485,000 290,344 5.49
Cendant Corp. (formerly CUC International Inc.)(1) 5,800,000 125,788 2.38
Columbia/HCA Healthcare Corp. 1,747,500 57,121 1.08
Cambridge Technology Partners (Massachusetts), Inc. (1) 800,000 40,125 .76
Federal Express Corp. (1) 550,000 35,269 .67
Allied Waste Industries, Inc. (1) 979,900 25,967 .49
USA Waste Services, Inc. (1) 500,000 23,594 .45
Waste Management, Inc. 700,628 22,770 .43
Concord EFS, Inc. (1) 700,600 22,332 .42
Shared Medical Systems Corp. 260,000 18,915 .36
Ecolab Inc. 600,000 18,525 .35
First Data Corp. 500,000 16,625 .31
Universal Health Services, Inc., Class B (1) 300,000 16,500 .31
Avery Dennison Corp. 220,000 11,399 .22
Ceridian Corp. (1) 150,000 8,100 .15
APAC TeleServices, Inc. (1) 700,000 6,366 .12
Paychex, Inc. 165,000 5,940 .11
Electronic Data Systems Corp. 150,000 5,456 .10
Coram Healthcare Corp. (1) 67,962 140 .00
Electronic Components -- 13.71%
Texas Instruments Inc. 1,950,000 100,181 1.89
Intel Corp. 1,140,800 81,496 1.54
Altera Corp. (1) 1,625,000 54,641 1.03
Microchip Technology Inc. (1) 2,105,000 51,572 .98
Analog Devices, Inc. (1) 2,066,666 51,021 .96
Linear Technology Corp. 700,000 48,956 .93
Micron Technology, Inc. (1) 1,946,300 45,860 .87
ADC Telecommunications, Inc. (1) 1,605,900 45,166 .85
SCI Systems, Inc.(1) 1,200,526 40,968 .77
LSI Logic Corp. (1) 1,750,000 37,297 .71
Quantum Corp. (1) 1,700,000 37,188 .70
Adaptec, Inc. (1) 1,661,000 25,226 .48
Xilinx, Inc. (1) 500,000 19,016 .38
Bay Networks, Inc. (1) 650,000 17,997 .34
Newbridge Networks Corp. (Canada)(1) 460,000 13,052 .25
Western Digital Corp. (1) 730,700 12,422 .23
Flextronics International Ltd.
(Incorporated in Singapore) (1) 300,000 11,887 .22
National Semiconductor Corp. (1) 665,000 10,806 .20
Rogers Corp. (1) 190,800 7,370 .14
Park Electrochemical Corp. 250,000 5,938 .11
Seagate Technology (1) 200,000 4,625 .09
Motorola, Inc. 42,000 2,223 .04
Data Processing & Reproduction -- 7.83%
Oracle Corp. (1) 3,545,200 83,755 1.58
Solectron Corp. (1) 1,271,000 52,588 .99
Intuit Inc. (1) 1,093,300 51,795 .98
Lexmark International Group, Inc., Class A (1) 620,000 34,410 .65
Vantive Corp. (1) 1,130,000 30,369 .57
Silicon Graphics, Inc. (1) 2,170,000 26,040 .49
Microsoft Corp. (1) 300,000 25,444 .48
Netscape Communications Corp. (1) 921,900 22,587 .43
Sequent Computer Systems, Inc. (1) 1,200,000 19,875 .38
Autodesk, Inc. 400,000 17,000 .32
Structural Dynamics Research Corp. (1) 475,000 12,023 .23
Mentor Graphics Corp. (1) 800,000 8,850 .17
Ascend Communications, Inc. (1) 200,000 8,637 .16
Rambus Inc. (1) 200,000 7,731 .15
Digital Equipment Corp. (1) 111,800 6,135 .12
3Com Corp. (1) 205,000 5,202 .10
Data General Corp. (1) 100,000 1,525 .03
Leisure & Tourism -- 7.31%
Walt Disney Co. 1,400,000 158,375 2.99
King World Productions, Inc. (1) 3,550,000 90,525 1.71
Carnival Corp., Class A 650,000 44,038 .83
Mirage Resorts, Inc. (1) 1,700,000 35,381 .68
MGM Grand, Inc. (1) 650,000 21,572 .41
Host Marriott Corp. (1) 1,000,000 19,250 .36
Harrah's Entertainment, Inc. (1) 700,000 17,500 .33
Merchandising -- 4.10%
Consolidated Stores Corp. (1) 1,565,625 59,787 1.13
Cardinal Health, Inc., Class A 545,000 48,573 .92
Payless ShoeSource, Inc. (1) 295,000 20,668 .39
Limited Inc. 617,700 20,539 .39
Barnes & Noble, Inc. (1) 550,000 18,631 .35
Lowe's Companies, Inc. 200,000 15,838 .30
Woolworth Corp. (1) 775,000 15,306 .29
Circuit City Stores, Inc. - Circuit City Group 200,000 8,475 .16
Boise Cascade Office Products Corp. (1) 300,000 5,138 .10
Spiegel, Inc., Class A (1) 726,600 3,860 .07
Telecommunications -- 3.00%
Tele-Communications, Inc., Series A,
TCI Ventures Group (1) 3,800,400 66,151 1.25
AirTouch Communications (1) 1,050,000 50,006 .95
LCI International, Inc. (1) 613,400 22,964 .43
MCI Communications Corp. 370,000 19,784 .37
Health & Personal Care -- 2.77%
Pfizer Inc 250,000 26,203 .50
Warner-Lambert Co. 300,000 19,144 .37
Forest Laboratories, Inc. (1) 511,600 16,883 .32
Omnicare, Inc. 400,000 14,025 .27
Sepracor Inc. (1) 300,000 12,900 .24
Guidant Corp. 200,000 12,888 .24
BioChem Pharma Inc. (Canada)(1) 400,000 10,500 .20
Avon Products, Inc. 100,000 8,181 .15
Johnson & Johnson 97,600 6,740 .13
SEQUUS Pharmaceuticals, Inc. (1) 440,416 5,010 .09
Dura Pharmaceuticals, Inc. (1) 184,600 4,811 .09
Novoste Corp.(1) 150,000 3,788 .07
Guilford Pharmaceuticals, Inc. (1) 200,000 3,612 .07
Pharmacia & Upjohn, Inc. 36,250 1,602 .03
Chemicals -- 2.46%
Monsanto Co. 1,030,000 57,037 1.08
Valspar Corp. 750,000 30,281 .58
Air Products and Chemicals, Inc. 225,000 19,575 .37
Mycogen Corp. (1) 725,000 17,128 .32
Engelhard Corp. 284,400 5,919 .11
Banking -- 2.19%
Washington Mutual, Inc. 575,000 40,610 .77
BankBoston Corp. 290,840 30,647 .58
Charter One Financial, Inc. 551,250 18,880 .36
M&T Bank Corp. 25,000 12,700 .24
Norwest Corp. 200,000 7,775 .15
Wells Fargo & Co. 14,700 5,314 .09
Electrical & Electronics -- 2.06%
Telefonaktiebolaget LM Ericsson,
Class B (American Depositary Receipts) (Sweden) 2,280,000 63,555 1.20
Nokia Corp., Class A
(American Depositary Receipts) (Finland) 420,000 27,274 .52
NextLevel Systems, Inc. (1) 750,400 17,869 .34
Energy Sources -- 2.04%
Union Texas Petroleum Holdings, Inc. 1,500,000 41,250 .79
Oryx Energy Co. (1) 800,000 18,650 .35
Murphy Oil Corp. 350,000 17,609 .33
Enterprise Oil PLC (United Kingdom) 1,500,000 13,903 .26
Pogo Producing Co. 274,300 7,029 .13
TOTAL, Class B (American Depositary Receipts) (France) 110,000 6,854 .13
Talisman Energy Inc. (Canada)(1) 100,000 2,713 .05
Transportation:Airlines -- 1.64%
Southwest Airlines Co. 1,800,450 48,049 .91
AMR Corp. (1) 195,000 30,018 .57
Delta Air Lines, Inc. 75,000 8,625 .16
Insurance -- 1.59%
EXEL Ltd. (Incorporated in Bermuda) 560,000 42,140 .80
Transatlantic Holdings, Inc. 405,000 30,299 .57
Aetna Inc. 150,000 11,728 .22
Financial Services -- 1.44%
Fannie Mae 600,000 35,925 .68
Household International, Inc. 150,000 20,297 .38
Capital One Financial Corp. 200,000 19,962 .38
Electronic Instruments -- 1.19%
Perkin-Elmer Corp. 357,000 24,455 .46
KLA-Tencor Corp. (1) 600,000 20,250 .38
Security Dynamics Technologies, Inc. (1) 735,000 15,527 .30
ANTEC Corp. (1) 150,000 2,873 .05
Energy Equipment -- 0.94%
Schlumberger Ltd. (Netherlands Antilles) 250,000 19,516 .37
Western Atlas Inc. (1) 125,000 10,820 .20
Baker Hughes Inc. 300,000 10,800 .20
Transocean Offshore Inc. 178,900 8,822 .17
Recreation & Other Consumer Products -- 0.60%
Hasbro, Inc. 650,000 24,862 .47
Midway Games Inc. (1) 500,000 6,750 .13
Textiles & Apparel -- 0.55%
Nine West Group Inc. (1) 755,000 21,282 .40
NIKE, Inc., Class B 175,000 8,050 .15
Beverages & Tobacco -- 0.55%
Philip Morris Companies Inc. 555,000 20,743 .40
PepsiCo, Inc. 200,000 8,163 .15
Aerospacce & Military Technology -- 0.21%
Gulfstream Aerospace Corp. (1) 267,000 11,347 .21
Food & Household Products -- 0.18%
Dole Food Co., Inc. 200,000 9,237 .18
Machinery & Engineering -- 0.13%
Thermo Electron Corp. (1) 200,000 7,025 .13
Real Estate -- 0.10%
Security Capital Group Inc., Class A (1) 2,500 3,375
Security Capital Group Inc., Class B (1) 70,100 1,963 .10
Transportation: Rail & Road -- 0.09%
Wisconsin Central Transportation Corp. (1) 200,000 4,687 .09
Construction & Housing -- 0.07%
Stone & Webster, Inc. 90,000 3,645 .07
Miscellaneous
Other stocks in intial period of acquisition 79,040 1.49
------- -------
TOTAL STOCKS (cost: $3,344,580,000) 5,027,273 95.05
------- -------
Principal
Amount
Short-Term Securities (000)
CORPORATE SHORT- TERM NOTES -- 3.11%
E.I. du Pont de Nemours and Co. 5.46%-5.55%
due 6/18-7/16/98 27,200 27,076 .51
Motorola Credit Corp. 5.46%-5.47% due 7/7-7/10/98 24,000 23,862 .46
Minnesota Mining and Manufacturing Co. 5.47% due 6/4/98 23,000 22,986 .43
Bell Atlantic Financial Services Inc. 5.49% due 6/22/98 20,000 19,933 .38
National Rural Utilities, Cooperative Finance Corp.
due 5.47%-5.57% 6/2-7/20/98 19,400 19,391 .36
BellSouth Telecommunications, Inc. 5.48%-5.49%
due 6/2-8/17/98 17,600 17,499 .33
Coca-Cola Co. 5.49% due 7/8-7/21/98 17,400 17,292 .33
Hershey Foods Corp. 5.45%-5.48% due 6/17-6/25/98 16,400 16,349 .31
FEDERAL AGENCY DISCOUNT NOTES -- 0.85%
Freddie Mac 5.41%-5.42% due 6/10-6/19/98 23,700 23,648 .45
Fannie Mae 5.41%-5.42% due 7/13-7/21/98 21,800 21,645 .40
----------------------
TOTAL SHORT-TERM SECURITIES (cost: $209,686,000) 209,681 3.96
------- -------
TOTAL INVESTMENT SECURITIES (cost: $3,554,266,000) 5,236,954 99.01
Excess of cash and receivables over payables 52,334 .99
------- -------
NET ASSETS $5,289,288 100.00%
======= =======
(1) Non-income-producing securities.
See notes to Financial Statements
Stocks appearing in the portfolio
since November 30, 1997
Allied Waste Industries
Baker Hughes
Cambridge Technology Partners
Cardinal Health
Chancellor Media
Concord EFS
Coram Healthcare
Dole Food
First Data
Guilford Pharmaceuticals
Hasbro
Household International
KLA-Tencor
Linear Technology
M&T Bank
Micron Technology
Microsoft
Monsanto
Novoste
Perkin-Elmer
Pfizer
Rambus
Security Dynamics Technologies
TOTAL
Transocean Offshore
Vantive
Warner-Lambert
Wells Fargo
Western Atlas
Western Digital
Wisconsin Central Transportation
Stocks eliminated from the portfolio
since November 30, 1997
Actel
Advanced Micro Devices
Alpha-Beta Technology
Computer Associates International
Danka Business Systems
Electronic Arts
Everest Reinsurance Holdings
Freddie Mac
Gillette
HFS
K N Energy
Liz Claiborne
Manpower
Marriott International
Mattel
Medtronic
Northern Trust
PacifiCare Health Systems
Quorum Health Group
Reading & Bates
SONUS Pharmaceuticals
Sybase
United States Surgical
</TABLE>
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES INTERNATIONAL FUND
Investment Portfolio, May 31, 1998 (Unaudited)
<S> <C> <C> <C>
Where the Fund's Assets Are Invested
Percent of Percent of
Net Assets Net Assets
------------------------
EUROPE 63.80%
United Kingdom 13.0%
Germany 4.5
Sweden 4.5
Italy 3.8
France 3.6
Spain 3.6
Switzerland 3.6
Netherlands 2.5
Norway 2.0
Finland 1.6
Luxembourg 1.2
Other Europe 1.2
ASIA/PACIFIC 17.47%
Japan 13.8
Hong Kong 6.0
Australia 5.5
South Korea 1.9
Other Asia/Pacific 3.1
THE AMERICAS 11.17%
Canada 5.6
Brazil 4.3
Mexico 3.2
Other Americas 0.8
OTHER COUNTRIES 1.65%
CASH AND EQUIVALENTS 5.91%
TOTAL 100.0%
Largest Individual Stocks
Telefonica 4.71%
Telefonaktiebolaget LM Ericsson 2.56
TELECEL - Comunicacoes Pessoais 2.40
Rentokil Group 2.14
Novartis 2.13
Nokia 2.11
Bayerische Motoren Werke 2.06
Philips Electronics 1.89
Bank of Nova Scotia 1.76
France Telecom 1.73
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- --------------------------------------------------------------------- -----------------------------------
TELECOMMUNICATIONS - 20.68%
Telefonica SA(Spain) 2,603,636 $116,378
Telefonica SA (American Depositary Receipts) 172,363 23,183 4.71%
TELECEL - Comunicacoes Pessoais, SA (Portugal) 406,000 71,150 2.40
France Telecom SA (France) 914,200 51,229 1.73
Mannesmann AG (Germany) 45,000 43,994 1.49
Deutsche Telekom AG (Germany) 1,602,800 42,968 1.45
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) (Mexico) 882,000 41,840 1.41
Telecom Italia Mobile SpA (Italy) 6,023,000 35,550
Telecom Italia Mobile SpA, savings shares 1,588,800 5,780 1.40
Koninklijke PTT Nederland NV (Netherlands) 634,000 35,427 1.20
Hong Kong Telecommunications Ltd. (Hong Kong) 14,956,946 26,928 .91
Orange PLC (United Kingdom) (1) 2,990,000 22,463 .76
Telecom Italia SpA, nonconvertible savings shares (Italy) 3,060,465 16,526 .56
Cable & Wireless Communications PLC (United Kingdom) 1,900,000 14,646 .49
Telefonica de Argentina SA, Class B (American Depositary
Receipts) (Argentina) 417,000 13,578 .46
Philippine Long Distance Telephone Co., convertible preferred
(Global Depositary Receipts) (Philippines) 80,000 3,950
Philippine Long Distance Telephone Co. (American Depositary Receipts) 154,000 3,908 .38
Philippine Long Distance Telephone Co. 135,000 3,475
China Telecom (Hong Kong) Ltd. (American Depositary 314,600 11,208 .38
Receipts) (People's Republic of China) (1)
Cia. de Telecomunicaciones de Chile SA
(American Depositary Receipts) (Chile) 400,000 8,875 .30
Bayan Telecommunications Holdings Corp. (Philippines) (2,3) 26,901 69
Bayan Telecommunications Holdings Corp., convertible preferred (1,2,3) 150,000 7,500 .26
Telecomunicacoes Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 51,000 5,438 .18
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp. (Indonesia) 1,600,000 2,136
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp. .09
(American Depositary Receipts) 40,000 565
SK Telecom Co., Ltd. (South Korea) 5,017 2,275 .08
Videsh Sanchar Nigam Ltd. (Global Depositary Receipts) (India) (2) 108,600 1,290 .04
BANKING - 8.72%
Bank of Nova Scotia (Canada) 1,950,000 52,229 1.76
ForeningsSparbanken AB, Class A (Sweden) 1,454,500 43,681 1.48
Safra Republic Holdings SA (Luxembourg) 234,000 35,100 1.19
Christiania Bank (Norway) 3,800,000 16,287 .55
Unidanmark A/S, Class A (Denmark) 200,000 16,147 .54
Westpac Banking Corp. (Australia) 2,300,000 15,180 .51
Deutsche Bank AG (Germany) 152,000 13,080 .44
Standard Chartered Bank (United Kingdom) 900,000 11,296 .38
Royal Bank of Scotland Group PLC (United Kingdom) 650,000 10,977 .37
Bank of Montreal (Canada) 168,800 9,488 .32
Bank of Scotland (United Kingdom) 750,000 8,691 .29
Societe Centrale des Assurances Generales de France (France) 36,700 7,272 .25
Toronto-Dominion Bank (Canada) 130,000 5,839 .20
Sakura Bank, Ltd. (Japan) 1,720,000 5,098 .17
Commonwealth Bank of Australia (Australia) 295,000 3,470 .12
Fuji Bank, Ltd. (Japan) 470,000 2,305 .08
Australia and New Zealand Banking Group Ltd. (Australia) 243,127 1,725 .06
Grupo Financiero Banamex Accival, SA de CV, Class L (Mexico) (1) 92,128 204 .01
BROADCASTING & PUBLISHING - 6.76%
CANAL+ (France) 124,418 22,595 .76
ProSieben Media AG (Germany) (1) 400,000 19,945 .67
FLEXTECH PLC (United Kingdom) (1) 2,250,000 19,182 .65
News Corp. Ltd. (American Depositary Receipts) (Australia) 362,000 8,914
News Corp. Ltd., preferred shares (American Depositary Receipts) 181,000 3,880 .58
News Corp. Ltd., preferred shares (United Kingdom) 790,115 4,276
Metropole Television (France) 106,000 15,599 .53
Hachette Filipacchi Media (France) 51,025 14,079 .48
Mediaset SpA (Italy) 1,967,000 12,718 .43
Television Francaise 1 SA (France) 80,000 11,291 .38
Pathe (France) 58,626 11,098 .37
Grupo Televisa, SA (American Depositary Receipts) (Mexico) (1) 261,000 10,195 .34
Seven Network Ltd. (Australia) 2,131,083 7,266 .25
TV Azteca, SA de CV (American Depositary Receipts) (Mexico) 463,900 6,698 .23
Nippon Television Network Corp. (Japan) 21,000 6,315 .21
Television Broadcasts Ltd. (Hong Kong) 2,259,300 5,336 .18
Springer (Axel) Verlag AG (Germany) 5,726 4,956 .17
Modern Times Group MTG AB, Class B (American Depositary Receipts)
(Sweden) (1) 61,000 3,599
Modern Times Group MTG AB, Class A (1) 101,600 1,127 .16
Primedia Ltd. units (South Africa) 391,631 3,381
Primedia Ltd. units, Class N 167,842 1,335 .16
SOFTBANK Corp. (Japan) 83,800 3,203 .11
Publishing & Broadcasting Ltd. (Australia) 650,000 3,082 .10
ELECTRICAL & ELECTRONICS - 5.87%
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 2,269,200 64,676
Telefonaktiebolaget LM Ericsson, Class B (American Depositary Receipts) 400,000 11,150 2.56
Nokia Corp., Class A (Finland) 652,000 42,917
Nokia Corp., Class K 300,000 19,470 2.11
Northern Telecom Ltd. (Canada) 460,000 29,440 .99
Premier Farnell PLC (United Kingdom) 1,000,000 6,116 .21
MULTI-INDUSTRY - 5.67%
Orkla AS, Class A (Norway) 2,220,000 50,520 1.71
Hutchison Whampoa Ltd. (Hong Kong) 4,900,000 25,611 .86
Suez Lyonnaise des Eaux (France) 145,000 24,757 .84
Siebe PLC (United Kingdom) 920,000 22,538 .76
Imasco Ltd. (Canada) 900,000 16,657 .56
Lend Lease Corp. Ltd. (Australia) 452,616 9,656 .33
Incentive AB, Class A (Sweden) 106,100 9,458 .32
Benpres Holdings Corp. (Global Depositary Receipts) (Philippines) (1) 2,156,000 7,007 .24
Swire Pacific Ltd., Class A (Hong Kong) 450,000 1,664 .05
FOOD & HOUSEHOLD PRODUCTS - 5.04%
Nestle SA (Switzerland) 20,936 44,809 1.51
Raisio Group PLC (Finland) 195,000 36,493 1.23
Reckitt & Colman PLC (United Kingdom) 1,218,375 25,003 .85
Cadbury Schweppes PLC (United Kingdom) 1,500,000 22,942 .78
Groupe Danone (France) 50,987 13,736 .46
Kerry Group PLC, Class A (United Kingdom) 420,000 6,153 .21
BUSINESS & PUBLIC SERVICES - 4.96%
Rentokil Group PLC (United Kingdom) 9,180,000 63,481 2.14
Brambles Industries Ltd. (Australia) 920,182 18,651 .63
United Utilities PLC (United Kingdom) 1,190,224 16,134 .55
Aegis Group PLC (United Kingdom) 7,350,000 11,824 .40
Vivendi (formerly Generale des Eaux) (France) 44,600 8,965 .30
Reuters Holdings PLC (United Kingdom) 776,533 8,941 .30
Thames Water PLC (United Kingdom) 475,000 7,715 .26
Zhejiang Expressway Co. Ltd., Class H (People's Republic of China) 25,000,000 5,678 .19
Havas SA (France) 67,335 5,306 .18
Sasani LTD (South Africa) 1,229,528 184 .01
HEALTH & PERSONAL CARE - 3.89%
Novartis AG (Switzerland) 37,324 63,142 2.13
AB Astra, Class A (Sweden) 1,613,333 32,404 1.10
Zeneca Group PLC (United Kingdom) 418,200 17,000 .57
SmithKline Beecham PLC (American Depositary Receipts) (United Kingdom) 50,000 2,691 .09
MERCHANDISING - 3.31%
Dixons Group PLC (United Kingdom) 3,144,600 29,993 1.01
Carrefour SA (France) 39,000 23,843 .81
Cifra, SA de CV, Class C (Mexico) 6,000,000 8,454
Cifra, SA de CV, Class V 3,397,506 4,941 .45
Kingfisher PLC (United Kingdom) 638,000 11,305 .38
Tesco PLC (United Kingdom) 679,302 5,958 .20
Koninklijke Ahold NV (Netherlands) 180,000 5,682 .19
Coles Myer Ltd. (Australia) 1,160,436 5,227 .18
Amway Japan Ltd. (American Depositary Receipts) (Japan) 263,700 1,665
Amway Japan Ltd. 65,000 797 .09
BEVERAGES & TOBACCO - 3.04%
Coca-Cola Amatil Ltd. (Australia) 2,605,950 19,156 .65
Hellenic Bottling Co. SA (Greece) 555,220 18,571 .63
South African Breweries Ltd. (South Africa) 593,238 16,734 .57
Panamerican Beverages, Inc., Class A (Multinational-Incorporated in Panama) 486,000 16,433 .55
Cia. Cervejaria Brahma, preferred nominative (Brazil) 26,300,000 15,320 .52
San Miguel Corp., Class B (Philippines) 2,357,000 3,701 .12
APPLIANCES & HOUSEHOLD DURABLES - 2.86%
Philips Electronics NV (Netherlands) 590,000 56,052 1.89
Sony Corp. (Japan) 340,000 28,687 .97
Samsung Electronics Co., Ltd. (South Korea) 1,118 43 .00
ELECTRONIC COMPONENTS - 2.83%
Rohm Co., Ltd. (Japan) 354,000 36,761 1.24
Hoya Corp. (Japan) 475,000 15,003 .51
Murata Manufacturing Co., Ltd. (Japan) 455,000 13,158 .44
Hirose Electric Co., Ltd. (Japan) 111,000 5,803 .20
Hyundai Electronics (South Korea) (1) 432,000 5,638 .19
Kyocera Corp. (Japan) 99,000 4,826 .16
LG Semicon Co., Ltd. (South Korea) (1) 307,180 2,589 .09
AUTOMOBILES - 2.81%
Bayerische Motoren Werke AG (Germany) 48,000 50,772
Bayerische Motoren Werke AG 9,600 10,031 2.06
Suzuki Motor Corp. (Japan) 1,700,000 13,841 .47
Mazda Motor Corp. (Japan) (1) 1,535,000 5,136 .17
Honda Motor Co., Ltd. (Japan) 100,000 3,404 .11
DATA PROCESSING & REPRODUCTION - 2.26%
Olivetti SpA (Italy) (1) 20,602,400 30,260
Olivetti SpA, warrants, expire 2002 2,490,400 2,741 1.12
Dassault Systemes SA (France) 466,000 21,741 .73
Fujitsu Ltd. (Japan) 1,070,000 12,269 .41
ENERGY SOURCES - 1.85%
TOTAL, Class B (France) 156,372 19,429
TOTAL, Class B (American Depositary Receipts) 75,000 4,673 .81
RAO Gazprom (American Depositary Receipts) (Russia) 460,000 6,394 .22
Imperial Oil Ltd. (Canada) 330,000 6,105 .21
Elf Aquitaine (France) 40,000 5,559 .19
Oil Co. LUKoil (American Depositary Receipts) (Russia) 124,500 5,104 .17
"Shell" Transport and Trading Co., PLC (New York Registered
Shares) (United Kingdom) 90,000 3,994 .13
Woodside Petroleum Ltd. (Australia) 600,000 3,446 .12
BUILDING MATERIALS & COMPONENTS - 1.61%
Cemex, SA de CV, ordinary participation certificates (Mexico) (1) 4,562,700 18,944
Cemex, SA de CV, Class A (1) 2,321,450 9,599 .96
Holderbank Financiere Glaris Ltd. (Switzerland) 15,000 19,164 .65
FINANCIAL SERVICES - 1.37%
Shohkoh Fund & Co., Ltd. (Japan) 109,000 27,904 .94
Credicorp Ltd. (Peru) 792,000 12,573 .43
INSURANCE - 1.10%
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 1,786,407 18,950 .64
ING Groep NV (Netherlands) 200,000 13,731 .46
UTILITIES: ELECTRIC & GAS - 0.97%
Centrais Eletricas Brasileiras SA - ELETROBRAS Class B, preferred
nominative (American Depositary Receipts) (Brazil) 538,000 9,550 .32
Cia. Paranaense de Energia-COPEL, Class B, preferred nominative
(Brazil) (1) 480,373,000 4,886
Cia. Paranaense de Energia-COPEL, ordinary nominative (1) 328,207,800 2,911 .26
Scottish Power PLC (United Kingdom) 661,200 5,875 .20
Hongkong Electric Holdings Ltd. (Hong Kong) 1,396,500 4,100 .14
Cia. Energetica de Minas Gerais - CEMIG (Brazil) 43,678,798 1,082 .04
CESP - Cia. Energetica de Sao Paulo, preferred nominative
(American Depositary Receipts) (Brazil) 14,096 137
CESP - Cia. Energetica de Sao Paulo, ordinary nominative (1) 1,684,000 45 .01
METALS: NONFERROUS - 0.87%
Alcan Aluminium Ltd. (Canada) 310,000 8,835 .30
WMC Ltd. (Australia) 1,928,134 6,031 .20
Pechiney, Class A (France) 90,000 4,583 .15
Teck Corp., Class B (Canada) 300,000 3,709 .13
Inco Ltd. (Canada) 180,000 2,587 .09
REAL ESTATE - 0.86%
Ayala Land, Inc. (Philippines) 32,220,000 10,989 .37
Mitsui Fudosan Co., Ltd. (Japan) 750,000 6,063 .21
Cheung Kong (Holdings) Ltd. (Hong Kong) 1,006,000 5,440 .18
Kerry Properties Ltd. (Hong Kong - Incorporated In Bermuda) 2,660,500 2,472 .08
Mandamus AB (Sweden) (3) 72,725 464 .02
RECREATION & OTHER CONSUMER PRODUCTS - 0.79%
EMI Group PLC (United Kingdom) 1,300,000 10,998 .37
Nintendo Co., Ltd. (Japan) 50,000 4,669 .16
Square Co. Ltd. (Japan) 125,000 4,011 .14
Sony Music Entertainment (Japan) Inc. (Japan) 90,000 3,615 .12
FOREST PRODUCTS & PAPER - 0.78%
UPM-Kymmene Corp. (Finland) 795,000 23,043 .78
AEROSPACE & MILITARY TECHNOLOGY - 0.69%
Bombardier Inc., Class B (Canada) 793,900 20,419 .69
INDUSTRIAL COMPONENTS - 0.63%
Minebea Co., Ltd. (Japan) 1,000,000 10,247 .35
Cie. Generale des Etablissements Michelin, Class B (France) 70,661 4,374 .15
Bridgestone Corp. (Japan) 175,000 3,988 .13
MACHINERY & ENGINEERING - 0.47%
Valmet Corp. (Finland) 600,000 10,510 .36
Kvaerner AS, Class A (Norway) 80,000 3,020 .10
Kawasaki Heavy Industries, Ltd. (Japan) 167,000 312 .01
CHEMICALS - 0.35%
BOC Group PLC (United Kingdom) 650,000 10,297 .35
ENERGY EQUIPMENT - 0.34%
Petroleum Geo-Services ASA (American Depositary Receipts) (Norway) (1) 155,800 10,205 .34
TRANSPORTATION: SHIPPING - 0.32%
Stolt-Nielsen SA, Class B (American Depositary Receipts)
(Multinational) 327,000 5,927 .20
Nippon Yusen KK (Japan) 1,000,000 3,454 .12
CONSTRUCTION & HOUSING - 0.29%
YTL Corp. Bhd. (Malaysia) 6,886,000 8,616 .29
MISCELLANEOUS MATERIALS & COMMODITIES - 0.23%
English China Clays PLC (United Kingdom) 1,583,750 6,596 .22
SGL Carbon AG (Germany) 2,300 273 .01
LEISURE & TOURISM - 0.16%
Mandarin Oriental International Ltd. (Singapore) 6,911,218 4,803 .16
TRANSPORTATION: AIRLINES - 0.09%
China Southern Airlines Co. Ltd., Class H (People's Republic of China) 16,000,000 2,746 .09
MISCELLANEOUS -- 0.94%
Other stocks in initial period of acquisition 27,946 .94
-----------------------
TOTAL STOCKS (cost: $2,029,105,000) 2,765,289 93.41
-----------------------
Principal
Amount
Convertible Debentures (000)
- --------------------------------------------------------------------- -----------------------------------
BROADCASTING & PUBLISHING - 0.30%
United News & Media PLC 6.125% 2003 (1) GBP4,500 8,916 .30
ELECTRONIC COMPONENTS - 0.22%
LG Electronics-LG Semiconduct 0.25% 2007 $5,000 3,575 .12
Acer Peripherals Inc. 1.25% 2006 2,680 3,028 .10
DATA PROCESSING & REPRODUCTION - 0.12%
Olivetti SpA 6.50% 2002 Lr2,490,400 3,596 .12
ENERGY SOURCES - 0.04%
Zhenhai Refining & Chemical Co. Ltd. 3.00% 2003 (2) $950 912 .04
-----------------------
TOTAL CONVERTIBLE DEBENTURES (cost: $17,546,000) 20,027 .68
-----------------------
TOTAL EQUITY-TYPE SECURITIES (cost: $2,046,651,000) 2,785,316 94.09
-----------------------
Principal Market Percent
Amount Value of Net
Short-Term Securities (000) (000) Assets
- --------------------------------------------------------------------- -----------------------------------
CORPORATE SHORT-TERM NOTES - 4.97%
Diageo Capital PLC 5.49%-5.50% due 6/4-6/11/98 (2) 27,500 27,462 .93
Daimler Benz North America 5.45%-5.50% due 6/8-8/25/98 20,000 19,791 .67
France Telecom, SA 5.49%-5.53% due 6/15/98 18,900 18,857 .64
General Electric Capital Corp. 5.65% due 6/1/98 16,600 16,597 .56
National Australia Funding (Delaware) Inc. 5.47%-5.49% due 6/24-7/1/98 16,000 15,931 .54
Arco British 5.52%-5.54% due 6/18-6/23/98 (2) 12,500 12,458 .42
Glaxo Wellcome PLC 5.49% due 6/8/98 (2) 11,100 11,086 .37
Xerox Capital (Europe) PLC 5.50% due 6/9/98 9,500 9,487 .32
General Motors Acceptance Corp. 5.49% due 6/5/98 9,300 9,293 .31
Toyota Motor Credit Corp. 5.50% due 6/2/98 6,250 6,248 .21
FEDERAL AGENCY DISCOUNT NOTES - 0.49%
Fannie Mae 5.415% due 8/27/98 14,800 14,599 .49
NON-U.S. CURRENCY - 0.14%
New Taiwanese Dollar NT$139,423 4,107 .14
-----------------------
TOTAL SHORT-TERM SECURITIES (cost: $166,023,000) 165,916 5.60
-----------------------
TOTAL INVESTMENT SECURITIES (cost: $2,212,674,000) 2,951,232 99.69
Excess of cash and receivables over payables 9,153 .31
-----------------------
NET ASSETS $2,960,385 100.00%
======== ========
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction; resale to the public may
require registration or sale only to qualified institutional buyers.
/3/ Valued under procedures established by the Board of Trustees.
See Notes to Financial Statements
Equity securities appearing in the portfolio
since November 30, 1997
Aegis Group
Ayala Land
Bank of Montreal
Bayan Telecommunications Holdings
BOC Group
China Telecom
Christiania Bank
Commonwealth Bank of Australia
Compania de Telecomunicaciones de Chile
Deutsche Bank
Dixons Group
EMI Group
Hachette Filipacchi Media
Hyundai Electronics
ING Groep
Kerry Group
Kerry Properties
Koninklijke Ahold
Kvaerner
LG Semicon Co.
Mandamus
Mazda Motor
Primedia
Raisio Group
Royal Bank of Scotland
Sasani
Societe Centrale des Assurances Generales de France
Standard Chartered Bank
Telecomunicaciones de Chile
Television Francaise 1
Unidanmark
YTL
Equity securities eliminated from the portfolio
since November 30, 1997
ABB
Acer
Ashanti Goldfields
Banco de Santander
British Aerospace
Bunzl
Carlton Communications
De Beers Consolidated Mines
Elan Corp.
ENI
Fuji International Finance (Bermuda) Trust
Hanil Bank
Hyundai Motor
Independent Newspapers
Indofood Sukses Makmur
KLM Royal Dutch Airlines
Korea Electric Power
Leighton Holdings
Lloyds TSB Group
Multicanal Participacoes
Noranda
Normandy Mining
Sankyo
Severn Trent
Sumitomo Electric Industries
TAG Heuer International
TELUS
Thomson-CSF
Tokyo Electron
Vedior
Volkswagen
Yue Yuen Industrial (Holdings)
</TABLE>
<TABLE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1998 (Unaudited)
Equity Securities 90.15%
Cash & Equivalents 9.85%
<S> <C> <C> <C>
Percent
of Net
Largest Individual Equities Assets
AT&T 1.72%
Pfizer 1.70
Warner-Lambert 1.40
Schering-Plough 1.39
Viacom 1.29
Walt Disney 1.21
York International 1.20
Ultramar Diamond Shamrock 1.20
Valero Energy 1.19
Oracle 1.15
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
Health & Personal Care - 8.60%
Pfizer Inc 1,200,000 $125,775 1.70%
Warner-Lambert Co. 1,620,000 103,376 1.40
Schering-Plough Corp. 1,224,300 102,459 1.39
AB Astra, Class A (American Depositary Receipts) (Sweden) 2,600,000 52,650 .71
Glaxo Wellcome PLC (American Depositary Receipts) (United Kingdom) 950,000 51,241 .70
Kimberly-Clark Corp. 740,000 36,676 .50
Avon Products, Inc. 400,000 32,725 .44
Guidant Corp. 500,000 32,219 .44
Bristol-Myers Squibb Co. 275,000 29,562 .40
Merck & Co., Inc. 250,000 29,266 .40
Johnson & Johnson 250,000 17,266 .23
DePuy, Inc. 500,000 14,937 .20
Abbott Laboratories 86,100 6,388 .09
Energy Sources - 7.50%
Ultramar Diamond Shamrock Corp. 2,780,400 88,799 1.20
Valero Energy Corp. 2,688,250 87,704 1.19
Atlantic Richfield Co. 870,000 68,621 .93
Noble Affiliates, Inc. 1,160,000 45,312 .61
Pennzoil Co. 780,900 45,146 .61
Amoco Corp. 900,000 37,631 .51
Texaco Inc. 650,000 37,537 .51
Kerr-McGee Corp. 415,000 26,249 .35
Oryx Energy Co. (1) 1,050,000 24,478 .33
Pioneer Natural Resources Co. 1,000,000 23,500 .32
Murphy Oil Corp. 463,200 23,305 .32
Elf Aquitaine (American Depositary Receipts) (France) 200,000 13,713 .19
Phillips Petroleum Co. 250,000 12,516 .17
Ashland Inc. 250,000 12,469 .17
Norsk Hydro AS (American Depositary Receipts) (Norway) 150,000 6,741 .09
Banking - 6.60%
First Union Corp. 1,330,000 73,566 1.00
Wells Fargo & Co. 182,200 65,865 .89
Chase Manhattan Corp. 415,000 56,414 .76
Regions Financial Corp. 1,300,000 53,463 .72
BankAmerica Corp. 470,800 38,929 .53
Marshall & Ilsley Corp. 599,800 32,389 .44
KeyCorp 800,000 30,350 .41
J.P. Morgan & Co. Inc. 230,000 28,563 .39
Bank of New York Co., Inc. 400,000 24,450 .33
SunTrust Banks, Inc. 280,000 22,120 .30
Norwest Corp. 400,000 15,550 .21
Huntington Bancshares Inc. 417,890 13,686 .19
Banc One Corp. 183,012 10,089 .14
Citicorp 61,500 9,171 .12
Bank of Tokyo - Mitsubishi, Ltd. (American Depositary 600,000 6,300 .09
Receipts) (Japan)
Sakura Bank, Ltd. (American Depositary Receipts) (Japan) 200,000 5,900 .08
Broadcasting & Publishing - 5.81%
Viacom Inc., Class B (1) 1,725,000 94,875 1.29
Time Warner Inc. 942,000 73,299 .99
Tele-Communications, Inc., Series A, Liberty Media Group (1) 1,635,937 53,986 .73
Harte-Hanks Communications, Inc. 1,845,600 41,757 .57
News Corp. Ltd. (American Depositary Receipts) (Australia) 1,100,000 27,087
News Corp. Ltd., preferred shares (American Depositary Receipts) 400,000 8,575 .48
Media General, Inc., Class A 636,100 29,261 .40
E.W. Scripps Co., Class A 530,000 28,024 .38
Comcast Corp., Class A, special stock 729,706 25,015 .34
Houston Industries Inc. 7.00% ACES convertible preferred 350,000 24,369 .33
Gannett Co., Inc. 340,000 22,419 .30
Merchandising - 5.65%
Wal-Mart Stores, Inc. 1,300,000 71,744 .97
Federated Department Stores, Inc. (1) 1,350,000 69,947 .95
Albertson's, Inc. 968,700 44,863 .61
Circuit City Stores, Inc. - Circuit City Group 1,025,000 43,434 .59
J.C. Penney Co., Inc. 600,000 43,088 .58
American Stores Co. 1,288,000 32,119 .43
Limited Inc. 900,000 29,925 .41
AutoZone, Inc. (1) 750,000 24,937 .34
Lowe's Companies, Inc. 250,000 19,797 .27
Woolworth Corp. (1) 800,000 15,800 .21
Circuit City Stores, Inc. - CarMax Group (1) 1,300,000 12,594 .17
Cardinal Health, Inc., Class A 96,700 8,618 .12
Data Processing & Reproduction - 4.82%
Oracle Corp. (1) 3,600,000 85,050 1.15
Xerox Corp. 609,400 62,616 .85
3Com Corp. (1) 1,900,000 48,212 .65
International Business Machines Corp. 325,400 38,194 .52
Microsoft Corp. (1) 400,000 33,925 .46
Silicon Graphics, Inc. (1) 2,424,300 29,092 .40
Adobe Systems Inc. 600,000 23,962 .33
Hewlett-Packard Co. 300,000 18,638 .25
Computer Associates International, Inc. 300,000 15,750 .21
Forest Products & Paper - 4.28%
Bowater Inc. 1,495,000 75,684 1.03
Fort James Corp. 869,499 41,573 .56
Weyerhaeuser Co. 800,000 40,650 .55
Georgia-Pacific Corp., Georgia-Pacific Group 448,300 28,775
Georgia-Pacific Corp., Timber Group 300,000 7,069 .49
Union Camp Corp. 600,000 32,812 .45
International Paper Co. 450,000 20,700 .28
Rayonier Inc. 425,000 19,948 .27
Chesapeake Energy Corp. 559,000 19,845 .27
Sonoco Products Co. 550,000 19,216 .26
Westvaco Corp. 187,500 5,344 .07
Louisiana-Pacific Corp. 200,000 3,988 .05
Business & Public Services - 4.21%
Browning-Ferris Industries, Inc. 2,156,100 76,67 1.04
Hertz Corp., Class A 991,800 45,499 .62
Electronic Data Systems Corp. 1,149,500 41,813 .57
IKON Office Solutions, Inc. 1,545,500 32,745 .44
Waste Management, Inc. 1,000,000 32,500 .44
Alexander & Baldwin, Inc. 1,020,000 29,325 .40
Avery Dennison Corp. 500,000 25,906 .35
Pitney Bowes Inc. 350,000 16,450 .22
Columbia/HCA Healthcare Corp. 300,000 9,806 .13
Chemicals - 4.10%
Millennium Chemicals Inc. 1,989,200 62,908 .85
Monsanto Co. 1,073,000 59,417 .80
Praxair, Inc. 1,094,100 53,953 .73
E.I. du Pont de Nemours and Co. 614,100 47,286 .64
PPG Industries, Inc. 350,000 25,506 .34
Witco Corp. 500,000 18,969 .26
Dow Chemical Co. 180,000 17,438 .24
Mallinckrodt Inc. 285,900 8,809 .12
Air Products and Chemicals, Inc. 100,000 8,700 .12
Telecommunications- 4.08%
AT&T Corp. 2,090,000 127,229 1.72
Ameritech Corp. 1,561,800 66,279 .90
Telefonica SA (American Depositary Receipts) (Spain) 218,181 29,345 .40
AirTouch Communications (1) 549,621 26,176 .36
U S WEST Communications, Inc. 500,000 25,375 .34
MCI Communications Corp. 350,000 18,714 .25
SBC Communications Inc. 200,000 7,775 .11
Machinery & Engineering - 2.88%
Caterpillar Inc. 1,310,000 71,968 .98
Deere & Co. 716,600 37,174 .50
Parker Hannifin Corp. 900,000 36,956 .50
Ingersoll-Rand Co. 525,000 23,658 .32
Crompton & Knowles Corp. 700,000 18,856 .26
New Holland NV (Netherlands) 625,000 14,844 .20
Greenfield Capital Trust 6.00% convertible preferred 118,000 6,136 .08
UNOVA Inc. (1) 150,000 3,319 .04
Utilities: Electric & Gas - 2.64%
Ameren Corp. (formerly Union Electric Co.) 1,145,400 44,814 .61
Duke Energy Corp. 625,000 36,015 .49
TECO Energy, Inc. 1,100,000 28,806 .39
GPU, Inc. 725,000 27,912 .38
DPL Inc. 1,500,000 25,875 .35
Williams Companies, Inc. 576,300 18,694 .25
Scottish Power PLC (American Depositary Receipts) (United Kingdom) 350,000 12,775 .17
Electronic Components - 2.60%
Texas Instruments Inc. 1,500,000 77,062 1.05
Intel Corp. 850,000 60,722 .82
AMP Inc. 725,000 27,550 .37
Corning Inc. 679,500 26,798 .36
Insurance - 2.49%
General Re Corp. 240,000 52,770 .72
St. Paul Companies, Inc. 937,255 41,591 .56
Allstate Corp. 300,000 28,237 .38
Aetna Inc. 300,000 23,456 .32
American General Corp. 320,000 21,480 .29
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 1,513,329 16,053 .22
Electrical & Electronics - 2.43%
York International Corp. 1,777,000 88,850 1.20
Nokia Corp., Class A (American Depositary Receipts) (Finland) 900,000 58,444 .79
Telefonaktiebolaget LM Ericsson, Class B (American Depositary Receipts)
(Sweden) 600,000 16,725 .23
Siemens AG (Germany) 240,000 15,490 .21
Aerospace & Military Technology - 2.28%
United Technologies Corp. 547,200 51,437 .69
Boeing Co. 770,000 36,671 .50
Raytheon Co., Class B 350,000 19,141
Raytheon Co., Class A 224,030 11,943 .42
Sundstrand Corp. 500,000 31,000 .42
General Motors Corp., Class H 370,000 18,315 .25
Beverages & Tobacco - 2.01%
Philip Morris Companies Inc. 1,355,000 50,643 .69
Seagram Co. Ltd. (Canada) 1,100,000 48,331 .66
Anheuser-Busch Companies, Inc. 450,000 20,672 .28
PepsiCo, Inc. 370,000 15,101 .20
UST Inc. 500,000 13,312 .18
Financial Services - 2.00%
Household International, Inc. 400,000 54,125 .73
Capital One Financial Corp. 300,000 29,944 .41
Beneficial Corp. 200,000 26,800 .36
FINOVA Group Inc. 360,000 19,913 .27
Associates First Capital Corp., Class A 221,732 16,588 .23
Energy Equipment - 1.33%
Western Atlas Inc. (1) 568,900 49,246 .67
Schlumberger Ltd. (Netherlands Antilles) 470,000 36,689 .50
Baker Hughes Inc. 337,000 12,132 .16
Industrial Components - 1.28%
Goodyear Tire & Rubber Co. 395,000 28,391 .38
Federal-Mogul Corp. 456,600 27,025 .37
Eaton Corp. 200,000 17,962 .24
Dana Corp. 231,800 12,083 .16
Tower Automotive, Inc. (1) 200,000 9,387 .13
Leisure & Tourism - 1.21%
Walt Disney Co. 789,932 89,361 1.21
Food & Household Products - 1.16%
Unilever NV (New York Registered Shares) (Netherlands) 325,000 25,655 .35
Bestfoods (formerly CPC International Inc.) 400,000 22,575 .31
Colgate-Palmolive Co. 182,500 15,877 .21
McCormick & Co. 450,000 15,075 .20
General Mills, Inc. 100,000 6,825 .09
Multi-Industry - 1.14%
FMC Corp. (1) 550,000 42,040 .57
Textron Inc. 340,000 25,224 .34
AlliedSignal Inc. 400,000 17,100 .23
Automobiles - 0.89%
Chrysler Corp. 600,000 33,375 .45
Ford Motor Co. 617,100 32,012 .44
Miscellaneous Materials & Commodities - 0.69%
Potash Corp. of Saskatchewan Inc. (Canada) 350,000 30,122 .41
Crown Cork & Seal Co., Inc. 400,000 20,750 .28
Transportation: Rail & Road - 0.68%
Union Pacific Corp. 695,050 33,623 .45
Norfolk Southern Corp. 540,000 16,909 .23
Textiles & Apparel - 0.65%
VF Corp. 460,000 24,466 .33
NIKE, Inc., Class B 510,800 23,497 .32
Metals: Nonferrous - 0.42%
Aluminum Co. of America 340,000 23,587 .32
Alumax Inc. (1) 160,000 7,490 .10
Metals: Steel - 0.38%
Allegheny Teledyne Inc. 1,200,000 27,900 .38
Recreation & Other Consumer Products - 0.29%
Harley-Davidson, Inc. 600,000 21,450 .29
Miscellaneous - 4.89%
Other stocks in initial period of acquisition 360,599 4.89
- -
TOTAL STOCKS (cost:$4,636,512,000) 6,641,635 89.99
-------- --------
Principal Market
Amount Value Percent of
Convertible Debentures (000) (000) Net Assets
Business & Public Services - 0.16%
CUC International Inc. 3.00% convertible debentures 2002(2) $12,000 12,105 .16
-------- --------
TOTAL CONVERTIBLE DEBENTURES (cost: $11,980,000) 12,105 .16
-------- --------
TOTAL EQUITY SECURITIES (cost: $4,648,492,000) 6,653,740 90.15
-------- --------
Short-Term Securities
Corporate Short-Term Notes - 8.21%
BellSouth Telecommunications, Inc. 5.47%-5.49% due 6/2-7/6/98 59,870 59,636 .81
Coca-Cola Co. 5.46%-5.50% due 6/11-7/21/98 58,100 57,832 .78
E.I. du Pont de Nemours and Co. 5.46%-5.49% due 6/18-7/17/98 51,900 51,573 .70
Amoco Co. 5.44%-5.48% due 7/22-8/7/98 50,000 49,534 .67
Atlantic Richfield Co. 5.40% due 8/11/98 46,400 45,874 .62
General Motors Acceptance Corp. 5.49%-5.50% due 6/5-6/12/98 45,610 45,544 .62
Bell Atlantic Financial Services, Inc. 5.49%-5.51% due 6/18-6/22/98 40,000 39,881 .54
Motorola, Inc. 5.47% due 7/7/98 36,500 36,293 .49
Albertson's, Inc. 5.48% due 6/24-6/25/98 35,000 34,869 .47
H.J. Heinz Co. 5.48% due 6/26/98 30,000 29,881 .41
Ford Motor Credit Co. 5.48%-5.50% due 7/10/98 29,300 29,132 .39
Minnesota Mining and Manufacturing Co. 5.47% due 6/4/98 27,000 26,984 .37
Hershey Foods Corp. 5.46% due 6/1/98 25,000 24,996 .34
Colgate-Palmolive Co. 5.47% due 6/9/98 (2) 25,000 24,966 .34
Campbell Soup Co. 5.47% due 7/14/98 (2) 21,000 20,859 .28
National Rural Utilities Cooperative
Finance Corp. 5.47% due 6/2-7/20/98 20,000 19,957 .27
General Electric Capital Corp. 5.65% due 6/1/98 8,000 7,999 .11
Federal Agency Discount Notes - 2.00%
Freddie Mac 5.41%-5.42% due 6/8-6/30/98 104,159 103,889 1.41
Fannie Mae 5.41%-5.425% due 6/26-8/27/98 43,900 43,555 .59
-------- --------
TOTAL SHORT-TERM SECURITIES (cost: $753,294,000) 753,254 10.21
-------- --------
TOTAL INVESTMENT SECURITIES (cost: $5,401,786,000) 7,406,994 100.36
Excess of payables over cash and receivables 26,378 .36
-------- --------
NET ASSETS $7,380,616 100.00%
=======================
/1/Non-income-producing securities.
/2/Purchased in a private placement transaction; resale to the public
may require registration or sale only to qualified institutional buyers.
See Notes to Financial Statements
Equity securities appearing in the portfolio
since November 30, 1997
Aetna
American Stores
Anheuser-Busch
AutoZone
Chesapeake Energy
Colgate-Palmolive
Corning
DePuy
Eaton
Hewlett-Packard
Microsoft
Noble Affiliates
Oryx Energy
Regions Financial
Siemens
TECO Energy
Tower Automotive
UNOVA
Wells Fargo
Equity securities eliminated from the portfolio
since November 30, 1997
American Home Products
AMR
Arthur J. Gallagher
Chevron
Chris-Craft Industries
Cognizant
Consolidated Edison
Cooper Industries
Delta Air Lines
Deltic Timber
Dresser Industries
Echlin
Edison International
Engelhard
Federal Express
First Chicago NBD
Fleet Financial Group
Gap
General Motors
Giant Food
Hibernia
Host Marriott
Imperial Chemical Industries
Kellogg
Liberty
Lucent Technologies
Lyondell Petrochemical
Manpower
Northern Trust
Repsol
Rubbermaid
Telefonos de Mexico
Tenneco
</TABLE>
<TABLE>
Asset Allocation Fund Percent
Investment Portfolio May 31, 1998 of Net
Assets
- ---------------------------------------------------- ----------
Equity Securities 59.53
Corporate Bonds 15.26
U.S. Government Bonds 14.37
Non-U.S. Government Bonds .38
Cash & Equivalents 10.46
<S> <C> <C> <C>
LARGEST INDIVIDUAL EQUITY SECURITIES
Rentokil Initial 2.10
Pfizer 1.89
Warner-Lambert 1.73
Zeneca Group 1.64
Praxair 1.63
Carnival 1.63
Atlantic Richfield 1.52
St. Paul Companies 1.51
Century Telephone Enterprises 1.43
Telefonica 1.41
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- ---------------------------------------------------- ---------- --------------------
Energy Sources- 8.17%
Atlantic Richfield Co. 320,000 $25,240 1.52%
Royal Dutch Petroleum Co. (New York Registered
Shares) (Netherlands) 360,000 20,182 1.22
Chevron Corp. 225,000 17,972 1.08
Kerr-McGee Corp. 200,000 12,650 .76
Oryx Energy Co. (1) 500,000 11,656 .70
Pioneer Natural Resources Co. 475,000 11,163 .67
Phillips Petroleum Co. 200,000 10,013 .60
Ultramar Diamond Shamrock Corp. 300,000 9,581 .58
Murphy Oil Corp. 175,300 8,820 .53
Amoco Corp. 200,000 8,362 .51
Health & Personal Care- 7.00%
Pfizer Inc 300000 31,444 1.89
Warner-Lambert Co. 450000 28,715 1.73
Zeneca Group PLC (American Depositary Receipts)
(United Kingdom) 660000 27,307 1.64
SmithKline Beecham PLC (American Depositary
Receipts) (United Kingdom) 300000 16,144 .97
Gillette Co. 108,480 12,706 .77
Banking- 5.52%
BankAmerica Corp. 200,000 16,537 1.00
H.F. Ahmanson & Co. 200000 15,250 .92
NationsBank Corp. 200,000 15,150 .91
Citicorp 100000 14,912 .90
First Union Corp. (formerly CoreStates Financial Corp) 202500 11,201 .68
KeyCorp 225000 8,536 .51
Tokai Preferred Capital Co. LLC 9.98% noncumulative
preferred, Series A (2) 4000 3,710 .22
BNP U.S. Funding Co. LLC 7.738% noncumulative preferred, Series A (2) 2500 2,537 .15
NB Capital Corp. 8.35% preferred, Series A (Canada) 1,500 1,565 .10
IBJ Preferred Capital Co. LLC 8.79% noncumulative preferred,
Series A (2) 1500 1,329 .08
Fuji JGB investment LLC 9.87% noncumulative preferred, Series A (Japan) (2) 1000 868 .05
Chemicals- 4.75%
Praxair, Inc. 550000 27,122 1.63
Air Products and Chemicals, Inc. 210000 18,270 1.10
E.I. du Pont de Nemours and Co. 200000 15,400 .93
PPG Industries, Inc. 150000 10,931 .66
Millennium Chemicals Inc. 228300 7,220 .43
Merchandising- 4.53%
Wal-Mart Stores, Inc. 400000 22,075 1.33
J.C. Penney Co., Inc. 290000 20,826 1.25
Limited Inc. 550000 18,287 1.10
Walgreen Co. 400000 14,075 .85
Business & Public Services- 4.03%
Rentokil Initial PLC (American Depositary Receipts)
(United Kingdom) 500000 34,875 2.10
Reuters Group PLC (American Depositary Receipts)
(United Kingdom) 216740 14,847 .89
Avery Dennison Corp. 250000 12,953 .78
Alexander & Baldwin, Inc. 150000 4,312 .26
Insurance- 3.90%
St. Paul Companies, Inc. (formerly USF&G Corp.) 564200 25,036 1.51
General Re Corp. 80000 17,590 1.06
American General Corp. 176700 11,861 .71
CIGNA Corp. 150000 10,275 .62
Telecommunications- 3.12%
Century Telephone Enterprises, Inc. 536,250 23,763 1.43
Telefonica SA (American Depositary
Receipts) (Spain) 175000 23,537 1.41
Omnipoint Corp. 7.00% convertible preferred (2) 40000 1,845 .11
NEXTEL Communications, Inc. 13.00% exchangeable
preferred, Series D (1)(3) 1372 1,545 .10
NEXTEL Communications, Inc., Class A (1) 4647 109
COLT Telecom Group PLC, warrants, expire 2006
(United Kingdom) (1)(2) 3750 484 .03
Iridium LLC, warrants, expire 2005 (2) (1) 1500 292 .02
Esat Telecom Group PLC, warrants, expire 2007
(Ireland) (1)(2) 3500 123 .01
Conecel Holdings Ltd., Class B, warrants,
expire 2000 (Ecuador) (1)(2) 40500 101 .01
Orion Network Systems, Inc., warrants, expire 2007 (1) 1250 20 .00
McCaw International, Ltd., warrants, expire 2007 (1)(2) 2000 8 .00
Electrical & Electronics- 2.21%
Nokia Corp., Class A (American Depositary
Receipts) (Finland) 340000 22,079 1.33
York International Corp. 180600 9,030 .54
Hubbell Inc., Class B 118000 5,553 .34
Beverages & Tobacco- 1.88%
PepsiCo, Inc. 520000 21,223 1.28
UST Corp. 375000 9,984 .60
Forest Products & Paper- 1.84%
Weyerhaeuser Co. 200000 10,162 .61
Sonoco Products Co. 241700 8,444 .51
Georgia-Pacific Corp. 100000 6,419 .39
Union Camp Corp. 100000 5,469 .33
Leisure & Tourism- 1.63%
Carnival Corp., Class A 400000 27,100 1.63
Discovery Zone, Inc. (1) (4) 2940 15
Discovery Zone, Inc., warrants, expire 2007 (1) (4) 326 - .00
Aerospace & Military Technology- 1.59%
Raytheon Co., Class A 161037 8,585
Raytheon Co., Class B 150000 8,203 1.01
Boeing Co. 200000 9,525 .58
Industrial Components- 1.08%
Genuine Parts Co. 300000 10,181 .61
Dana Corp. 150000 7,819 .47
Data Processing & Reproduction- 1.03%
International Business Machines Corp. 145000 17,019 1.03
Transportation: Rail & Road- 0.87%
Union Pacific Corp. 300000 14,513 .87
Electronic Components- 0.69%
AMP Inc. 300000 11,400 .69
Food & Household Products- 0.62%
General Mills, Inc. 150000 10,238 .62
Multi-Industry- 0.60%
Textron Inc. 120000 8,903 .53
Swire Pacific Capital Ltd. 8.84% cumulative
guaranteed perpetual capital securities (Hong Kong) (2) 50000 1,100 .07
Machinery & Engineering- 0.56%
Deere & Co. 180000 9,338 .56
Broadcasting & Publishing- 0.52%
Time Warner Inc. 10.25% exchangeable preferred,
Series M 2944 3,319 .20
American Radio Systems Corp. 11.375% exchangeable
preferred (3) 26320 3,001 .18
Adelphia Communications Corp. 13.00% exchangeable
preferred, Series B (1) 20000 2,380 .14
Metals: Steel- 0.42%
Allegheny Teledyne Inc. 300000 6,975 .42
Real Estate- 0.26%
SocGen Real Estate Co. LLC
7.64% preferred, Series A (2) 3000000 3,025 .18
CarrAmerica Realty Corp. 8.57% redeemable preferred,
Series B 50000 1,228 .08
Metals: Nonferrous- 0.21%
Aluminum Co. of America 50000 3,469 .21
MISCELLANEOUS - 1.93%
Other stocks in initial period of acquisition 32,077 1.93
--------------------
TOTAL STOCKS (cost: $628,139,000) 979108 58.96
---------------------
Principal
Amount
Convertible Debentures (000)
- ---------------------------------------------------- ---------- --------------------
Industrials & Services- 0.57%
Sunglass Hut International, Inc. 5.25% 2003 $3,375 2,801 .17
Time Warner Inc. 0% 2013 4,000 2,410 .15
Rogers Communications Inc. 0% 2013 5,000 2,231 .13
Bell Atlantic Financial Services, Inc. 5.75% 2003 (2) 1,925 1,993 .12
--------------------
TOTAL CONVERTIBLE DEBENTURES (cost: $8,415,000) 9435 .57
--------------------
TOTAL EQUITY SECURITIES (cost: $636,554,000) 988,543 59.53
--------------------
Bonds & Notes
- -----------------------------------------------
Diversified Media, Cable Television &
Telecommunications- 2.64%
Time Warner Inc.:
9.125% 2013 4,000 4,863
6.10% 2001 (2) 2,750 2,732 .55
7.25% 2017 1,500 1,546
Tele-Communications, Inc.:
8.75% 2015 2,000 2,347 .28
9.25% 2023 2,000 2,297
Consorcio Ecuatoriano de Telecomunicaciones SA CONECEL:
14.00% 2000 (2) 3000 3,015 .24
14.00% 2002 1000 1,005
Qwest Communications International Inc.
0%/9.47% 2007 (5) 4000 2,950 .18
Fox/Liberty Networks, LLC 0%/9.75% 2007 (5) 4000 2,700 .16
U S WEST Capital Funding, Inc. 7.30% 2007 2500 2,680 .16
Cable & Wireless Communications PLC 6.625% 2005 2,500 2,519 .15
Telesystem International Wireless Inc.
0%/13.25% 2007 (5) 3700 2,479 .15
CEI Citicorp Holdings SA 11.25% 2007 (2) 2750 2,421 .15
CBS Corp. 7.15% 2005 2000 2,007 .12
Falcon Holding Group, LP 0%/9.285% 2010 (2) (5) 3,000 1,868 .11
Iridium LLC, Series A, 13.00% 2005 1500 1,613 .10
Comtel Brasileira Ltda. 10.75% 2004 (2) 1,500 1,470 .09
Orion Network Systems, Inc. 11.25% 2007 1,250 1,416 .08
Cablevision Systems Corp. 8.125% 2009 (2) 1,250 1,306 .08
V2 Music (Holdings) PLC, units, 0%/14.00% 2008 (2) (5) 1,250 644 .04
Financial Services- 1.57%
Capital One Bank:
7.35% 2000 7500 7,662
6.375% 2003 2500 2,471 .69
7.268% 2027 (2) (6) 1250 1,257
Ocwen Financial Corp. 11.875% 2003 2850 3,206 .19
MBNA America Bank, NA 6.75% 2008 2,500 2,537 .15
PDVSA Finance Ltd. in Bond Fund 7.40% 2016 (2) 2,250 2,273 .14
Pan Pacific Industrial Investments PLC 0% 2007 (2) 6,000 2,266 .14
BTC Capital Trust I 6.438% 2026 (6) 2250 2,241 .13
Wharf International Finance Ltd., Series A, 7.625% 2007 1750 1,487 .09
Central Fidelity Capital Trust I, Series A,
6.656% 2027 (6) 600 620 .04
Banking & Thrifts- 1.55%
Bankers Trust New York Corp. 6.70% 2007 3330 3,390 .20
Imperial Capital Trust I, Series B, 9.98% 2026 2950 3,376 .20
MBNA Corp.:
MBNA Capital A, Series A, 8.278% 2026 2010 2,135 .19
MBNA Capital B, Series B, 6.519% 2027 (6) 1000 939
Dime Capital Trust I, Series A, 9.33% 2027 2500 2,871 .17
Chase Capital II, Series B, 6.219% 2027 (6) 2500 2,446 .15
Advanta Capital Trust I, Series B, 8.99% 2026 3000 2,370 .14
Chevy Chase Bank, FSB 9.25% 2008 2000 2,050 .12
First Nationwide Holdings Inc. 10.625% 2003 1500 1,673 .10
First Union Corp. 6.82%/7.57% 2026 (5) 1250 1,372 .08
Korea Development Bank 6.50% 2002 1300 1,113 .07
National Westminster Bancorp Inc. 9.45% 2001 1000 1,087 .07
Komercni Banka AS 9.00%/10.75% 2008 (2) (5) 1000 986 .06
Transportation- 1.54%
Continental Airlines, Inc.:
Series 1996-A, 6.94% 2015 3844 3,972
Series 1996-2C, 10.22% 2014 2135 2,631 .49
Series 1997-4A, 6.90% 2018 1500 1,542
United Air Lines, Inc.:
1996-A2, 7.87% 2019 (7) 2500 2,664
1995-A1, 9.02% 2012 1388 1,602 .29
9.00% 2003 500 560
Delta Air Lines, Inc. Pass Through Trust:
1993-A2, 10.50% 2016 (7) 2000 2,650 .23
1992-A2, 9.20% 2014 (7) 1000 1,196
Airplanes Pass Through Trust, Class 1-C, 8.15% 2019 (7) 2993 3,152 .19
Jet Equipment Trust, Series 1995-B, 7.83% 2015 (2) 2336 2,482 .15
USAir, Inc., 1996-B, 7.50% 2009 1879 1,992 .12
AMR Corp. 9.75% 2000 1000 1,063 .07
Cellular, Paging & Wireless Communications- 1.10%
NEXTEL Communications, Inc.:
0%/9.95% 2008 (2) (5) 4,500 2,841
0%/9.75% 2007 (5) 2,000 1,290 .31
0%/10.65% 2007 (5) 1,500 998
Clearnet Communications Inc.:
0%/11.75% 2007 (5) C$5,250 2,398 .24
0%/10.40% 2008 (5) C$4,000 1,648
McCaw International, Ltd. 0%/13.00% 2007 (5) $6,000 3,990 .24
Esat Telecom Group PLC, 0%/12.50% 2007 (5) 3,500 2,590 .16
Omnipoint Corp. 11.625% 2006 1500 1,605 .10
PriCellular Wireless Corp. 10.75% 2004 750 859 .05
Collateralized Mortgage Obligations
(Privately Originated) (7)- 0.91%
DLJ Mortgage Acceptance Corp., Series 1996-CF2:
Class A1, 7.29% 2021 (2) 3000 3,167 .35
Class B1, 7.53% 2021 (2) 2500 2,577
Asset-Backed Securities Investment Trust,
Series 1997-D, 6.79% 2003 (2) 5000 5,017 .30
GMAC Commercial Mortgage Securities, Inc.,
Series 1997-C1, Class A-1, 6.83% 2003 2295 2,341 .14
Morgan Stanley Capital I, Inc., Series 1998-WF1,
Class D, 7.12% 2030 (7) (6) 2000 2,026 .12
Energy & Related Companies- 0.89%
Oryx Energy Co.:
9.50% 1999 3,000 3,118
8.375% 2004 2,500 2,684 .41
10.00% 1999 1,000 1,033
USX Corp. 9.125% 2013 2,500 2,979 .18
OXYMAR 7.50% 2016 (2) 2500 2,560 .15
Pioneer Natural Resources Co. 7.20% 2028 2,500 2,498 .15
Real Estate- 0.73%
CarrAmerica Realty Corp. 6.875% 2008 (2) 3000 2,992 .18
Security Capital Pacific Trust 7.20% 2013 2000 2,035 .12
Security Capital Industrial Trust 7.95% 2008 1500 1,609 .10
Irvine Co., Series A, 7.46% 2006 (2) (4) 1500 1,536 .09
Shopping Center Associates 6.75% 2004 (2) 1500 1,511 .09
Irvine Apartment Communities, LP 7.00% 2007 1500 1,504 .09
EOP Operating LP 7.25% 2018 (2) 1000 1,004 .06
Broadcasting & Publishing- 0.59%
Chancellor Media Corp:
Series B, 8.75% 2007 2,250 2,312 .23
8.125% 2007 (2) 1,500 1,500
News America Holdings Inc.:
7.43% 2026 1,250 1,323 .15
10.125% 2012 1,000 1,165
RBS Participacoes SA 11.00% 2007 (2) 2,000 1,960 .12
Ziff-Davis Inc. 8.50% 2008 1,500 1,511 .09
Utilities: Electric & Gas- 0.45%
Israel Electric Corp. Ltd.:
7.25% 2006 (2) 2500 2,578 .25
7.75% 2027 (2) 1500 1,530
Commonwealth Edison Co., Series 75, 9.875% 2020 1500 1,780 .11
Energen Corp., Series B, 7.125% 2028 1500 1,528 .09
Metals: Nonferrous- 0.38%
Inco Ltd.:
9.60% 2022 2000 2,237 .23
9.875% 2019 1,500 1,589
Doe Run Resources Corp. 12.009% 2003 (2) (6) 2500 2,550 .15
Health & Personal Care- 0.38%
Allegiance Corp. 7.00% 2026 3000 3,223 .19
Integrated Health Services, Inc., Series A:
9.25% 2008 1,750 1,794 .19
9.50% 2007 1,250 1,297
Forest Products & Paper- 0.37%
Fort James Corp. 6.625% 2004 2,500 2,529 .15
Container Corp. of America 9.75% 2003 2000 2,150 .13
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1000 708 .05
Norampac Inc. 9.375% 2008 (2) C$1,000 702 .04
Food & Household Products- 0.36%
Home Products International, Inc. 9.625% 2008 (2) $3,000 3,045 .18
Fage Dairy Industry SA 9.00% 2007 2000 1,945 .12
GRUMA, SA de CV 7.625% 2007 1000 982 .06
Manufacturing & Materials- 0.24%
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 2750 2,173 .13
Owens-Illinois, Inc. 8.10% 2007 1,750 1,854 .11
Merchandising- 0.21%
Dayton Hudson Corp. 8.50% 2022 2500 2,717 .16
Woolworth Corp., Series A, 7.00% 2002 750 768 .05
Beverages & Tobacco- 0.19%
Sparkling Spring Water Group Ltd. 11.50% 2007 3,000 3,150 .19
Leisure, Tourism & Restaurants- 0.18%
Royal Caribbean Cruises Ltd. 7.00% 2007 3000 3,049 .18
Cable & Telephone in the United Kingdom- 0.18%
COLT Telecom Group PLC 0%/12.00% 2006 (5) 3,750 2,963 .18
Business & Public Services- 0.17%
Waste Management, Inc.
7.00% 2006 1750 1,793 .11
Federal Express Corp., Series A-310, Class A-1,
7.53% 2006 945 987 .06
Asset-Backed Obligations (7) - 0.15%
FIRSTPLUS Home Loan Owner Trust, Series 1997-1,
Class A-6, 6.95% 2015 1500 1,529 .09
IMC Home Equity Loan Trust, Series 1996-2,
Class A-2, 6.78% 2011 970 967 .06
Electrical & Electronics- 0.13%
Philips Electronics NV 7.20% 2026 2000 2,106 .13
Data Processing & Reproduction- 0.12%
Unisys Corp. 11.75% 2004 1750 2,021 .12
Machinery & Engineering- 0.08%
United Defense Industries, Inc. 8.75% 2007 1,400 1,414 .08
Insurance- 0.08%
Aetna Services, Inc. 6.97% 2036 1250 1,284 .08
Appliances & Household Durables- 0.07%
Samsung Electronics Co., Ltd. 7.45% 2002 (2) 1,250 1,103 .07
Non-U.S. Governments & Governmental
Authorities- 0.38%
Argentina (Republic of):
9.75% 2027 1325 1,221 .15
11.75% 2007 (2) 1250 1,219
Canadian Government 4.25% 2026 (8) C$2,000 1,511 .09
Mendoza (Province of) 10.00% 2007 (2) $1,500 1,436 .09
Poland (Republic of) Past Due Interest Bond 4.00% 2014 (6) 1000 907 .05
Federal Agency Obligations-Mortgage
Pass-Throughs (7)- 2.35%
Fannie Mae:
6.50% 2013 10000 10,056
6.00% 2013 9900 9,782
8.50% 2024 6679 6,986 1.73
7.00% 2009 1394 1,423
9.00% 2019 365 390
Government National Mortgage Assn.:
8.50% 2022 - 2027 4574 4,844
8.00% 2020 - 2022 4206 4,428 .62
10.00% 2019 941 1,044
Federal Agency Obligations-Other- 0.54%
Fannie Mae:
6.53% 2006 5000 4,971 .54
7.52% 2004 4000 4,054
U.S. Treasury Obligations- 11.48%
6.50% 2002 - 2005 50000 51,932
7.00% 2006 25000 27,117
7.125% 2000 25000 25,641
7.25% 2004 20000 21,628
10.375% 2009 - 2012 14000 18,464
3.597% 2002 (8) 12,500 12,507
8.75% 2000 - 2008 8000 8,893
8.25% 2005 5000 5,234 11.48
9.25% 1998 5000 5,039
7.50% 2016 4000 4,718
11.875% 2003 2500 3,220
8.875% 1999 2,500 2,556
11.125% 2003 2000 2,489
11.75% 2010 500 665
10.75% 2003 500 609
--------------------
TOTAL BONDS & NOTES (cost: $488,070,000) 498422 30.01
--------------------
Short-Term Securities
- ------------------------------------------------
Corporate Short-Term Notes- 8.04%
International Lease Finance Corp. 5.46%-5.50%
due 6/11-7-22/98 21,660 21,551 1.30
Coca-Cola Co. 5.46% due 7/8-7/21/98 19,200 19,080 1.15
Motorola, Inc. 5.46-5.49% due 6/9-7/14/98 18,600 18,505 1.12
General Electric Capital Corp. 5.65% due 6/1/98 14,800 14,798 .89
Hershey Foods Corp. 5.45% due 6/17/98 14,500 14,462 .87
National Rural Utilities Cooperative Finance Corp.
5.50% due 7/28/98 12,400 12,290 .74
Emerson Electric Co. 5.47% due 8/17/98 11,500 11,359 .68
E.I. du Pont de Nemours and Co. 5.49% due 7/10/98 10,900 10,834 .65
Procter & Gamble Co. 5.48% due 6/24/98 10,600 10,561 .64
Federal Agency Discount Notes- 2.56%
Freddie Mac 5.41% due 6/10-6/19/98 30,700 30,633 1.84
Fannie Mae 5.415% due 8/27/98 12,100 11,936 .72
--------- ---------
TOTAL SHORT-TERM SECURITIES (cost: $176,013,000) 176009 10.60
--------- ---------
TOTAL INVESTMENT SECURITIES (cost: $1,300,637,000) 1662974 100.14
Excess of payables over cash and receivables 2,378 .14
--------- ---------
NET ASSETS $1,660,596 100.00%
========= =========
/1/Non-income-producing securities.
/2/Purchased in a private placement transaction;
resale to the public may require registration or sale
only to qualified institutional buyers.
/3/Payment in kind. The issuer has the option of paying
additional securities in lieu of cash.
/4/ Valued under procedures established by the
Board of Trustees.
/5/ Step bond; coupon rate will increase at a later date.
/6/ Coupon rate changes periodically.
/7/ 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.
/8/ Index-linked bond, which is a floating rate bond whose
principal amount moves with a government retail price
index.
See Notes to Financial Statements
Equity securities appearing in the portfolio
since November 30, 1997
Bell Atlantic Financial Services
BNP U.S. Funding
COLT Telecom Group
Concel Holdings
Fuji JGB Investment
IBJ Preferred Capital
NB Capital
Omnipoint
Orion Network Systems
Oryx Energy
Reuters Group
SocGen Real Estate
Swire Pacific Capital
Tokai Preferred Capital
Zeneca Group
Equity securities eliminated from the portfolio
since November 30, 1997
Circuit City Stores - Circuit City Group
Dow Chemical
Fleet Financial Group
General Motors
Giant Food
Mallinckrodt
Nevada Power
Potash Corp. of Saskatchewan
</TABLE>
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES
BOND FUND
INVESTMENT PORTFOLIO - May 31, 1998
<S> <C> <C> <C>
Unaudited
CORPORATE BONDS 54.19%
U.S. GOVERNMENT BONDS 23.06
EQUITY-TYPE SECURITIES 9.89
NON-U.S. GOVERNMENT BONDS 2.87
CASH & EQUIVALENTS 9.99
Percent
of Net
Largest Industry Holdings Assets
Diversified Media, Cable Television
& Telecommunications 5.73%
Transportation 4.21
Financial Services 3.88
Manufacturing & Materials 3.75
Energy & Related Companies 3.30
MFS Communications 1.60%
Ocwen Financial 1.58
First Nationwide Holdings 1.38
Comtel Brasileira 1.34
USAir 1.27
Airplanes Pass 1.08
Time Warner 1.07
Kaiser Aluminum & Chemical 1.00
McDermott 0.95
Jet Equipment 0.87
Banking & Thrifts 2.37
Principal Market Percent
Amount Value Of Net
Bonds & Notes (000) (000) Assets
Diversified Media, Cable Television &
Telecommunications - 10.58%
Tele-Communications, Inc.:
8.75% 2015 $1,000 $ 1,173
7.125% 2028 1,000 1,005
9.25% 2023 500 574 1.53%
CBS Corp. 7.15% 2005 2,500 2,509 1.40
Time Warner Inc.:
7.75% 2005 500 536
7.25% 2017 500 515
7.95% 2000 500 513
6.10% 2001 (1) 500 497 1.15
Fox/Liberty Networks, LLC 0%/9.75% 2007 (2) 2250 1,519 .84
Consorcio Ecuatoriano de Telecomunicaciones SA CONECEL:
Series A, 14.00% 2000 (1) 600 603
14.00% 2002 500 502 .62
WorldCom, Inc. 8.875% 2006 1000 1,092 .61
Qwest Communications International Inc.:
0%/9.47% 2007 (2) 750 553
0%/8.29% 2008 (1), (2) 750 529 .60
Cablevision Systems Corp. 8.125% 2009 1000 1,045 .58
PanAmSat Corp. 6.125% 2005 (1) 1000 989 .55
Comtel Brasileira Ltda. 10.75% 2004 (1) 1000 980 .54
Comcast Corp.:
9.50% 2007 500 515
8.375% 2007 250 278 .44
RCN Corp. 10.00% 2007 500 525 .29
Ziff-Davis Inc. 8.50% 2008 500 504 .28
TCI Communications, Inc. 6.375% 1999 500 502 .28
V2 Music (Holdings) PLC, units 0%/14.00% 2008 (2) GBP575 484 .27
Orion Network Systems, Inc. 11.25% 2007 $250 283 .16
Iridium LLC, Series A, 13.00% 2005 250 269 .15
News America Holdings Inc. 7.43% 2026 250 264 .15
Northern Telecom Ltd. 6.875% 2002 250 257 .14
Cellular, Paging & Wireless Communications - 8.13%
NEXTEL Communications, Inc.:
0%/9.95% 2008 (1), (2) 2,500 1,578
0%/9.75% 2004 (2) 1,000 968
0%/10.65% 2007 (2) 750 499
0%/9.75% 2007 (2) 500 323 1.88
Clearnet Communications Inc.:
0/10.40% 2008 (2) C$3,000 1,236
0%/11.75% 2007 (2) 2,658 1,214 1.37
Omnipoint Corp. 11.625% 2006 $1,500 1,605 .89
Cable & Wireless Communications PLC 6.625% 2005 1,500 1,511 .84
Esat Telecom Group PLC 0%/12.50% 2007 (2) 2,000 1,480 .82
McCaw International, Ltd. 0%/13.00% 2007 (2) 2,125 1,413 .79
Crown Castle International Corp. 0%/10.625% 2007 (1), (2) 1,000 690 .38
PriCellular Wireless Corp. 10.75% 2004 500 572 .32
NEXTLINK Communications, Inc. 9.625% 2007 500 510 .28
Cellular Communications of Puerto Rico, Inc. 10.00% 2007 500 504 .28
Globalstar, LP 11.375% 2004 500 500 .28
Financial Services - 5.47%
J.P. Morgan & Co. Inc., Series A, 5.493% 2012 (3), (4) 2,000 1,852 1.03
Green Tree Financial Corp.:
10.25% 2002 1,000 1,111
6.50% 2002 500 494 .89
Ocwen Financial Corp. 11.875% 2003 1,294 .72
Capital One Bank:
7.15% 2006 500 507
6.375% 2003 500 494
7.268% 2027 (1), (4) 250 252 .70
PDVSA Finance Ltd. 7.40% 2016 (1) 1,000 1,010 .56
MBNA Capital, Series A, 8.278% 2026 600 637 .36
AT&T Capital Corp. 6.60% 2005 500 502 .28
Wharf International Finance Ltd. 7.625% 2007 515 438 .24
Pan Pacific Industrial Investments PLC 0% 2007 (1) 785 297 .17
Hutchison Whampoa Finance Ltd. 6.988% 2037 (1) 300 275 .15
BTC Capital Trust I 6.438% 2026 (4) 250 249 .14
Komercni Banka AS 9.0%/10.75% 2008 (1), (4) 250 246 .14
Central Fidelity Capital Trust I, Series A, 6.656% 2027 (4) 150 155 .09
Collateralized Mortgage Obligations (Privately Originated) (5) - 3.82%
Nomura Asset Securities Corp.:
Series 1998-D6, Class PS-1, 1.266% 2030 (3) 24,365 2,478
Series 1998-D6, Class A-1A, 6.28% 2030 1,979 1,992 2.49
DLJ Mortgage Acceptance Corp.:
Series 1995-CF2, Class A1, 6.85% 2027 (1) 600 616
Series 1996-CF2, Class B1, 7.53% 2021 (1) 500 515 .63
Morgan Stanley Capital I, Inc., Series 1998-WF1, Class D, 7.12% 2030 500 507 .28
GMAC Commercial Mortgage Securities, Inc., Series 1997-C1,
Class A-1, 6.83% 2003 459 468 .26
Merrill Lynch Mortgage Investors, Inc., Series 1995-C2,
Class A, 7.325% 2021 (4) 275 280 .16
Health & Personal Care - 3.36%
Columbia/HCA Healthcare Corp.:
6.91% 2005 2,000 1,930
7.15% 2004 500 491 1.35
Integrated Health Services, Inc.:
9.25% 2008 1,000 1,025
9.50% 2007 750 778 1.00
Allegiance Corp. 7.00% 2026 500 537 .30
Paracelsus Healthcare Corp. 10.00% 2006 500 510 .28
Sun Healthcare Group, Inc. 9.50% 2007 (1) 500 502 .28
United States Surgical Corp. 7.25% 2008 250 262 .15
Broadcasting & Publishing - 2.71%
Chancellor Media Corp.:
8.125% 2007 (1) 1,000 1,000
8.75% 2007 750 771
12.0% 2009 529 648 1.35
Hearst-Argyle Television, Inc. 7.00% 2018 1500 1,517 .84
American Radio Systems Corp. 9.00% 2006 400 428 .24
Globo Comunicacoes E Participacoes Ltda. 10.50% 2006 (1) 250 246 .14
RBS Participacoes SA 11.00% 2007 (1) 250 245 .14
Transportation - 2.62%
Atlas Air, Inc., Pass-Through Trust, Series 1998-1, Class A,
7.38% 2018 (1), (5) 1,500 1,544 .86
Continental Airlines, Inc.:
Series 1997-1, Class C-1, 7.42% 2007 (5) 491 508
6.648% 2019 500 506
Series 1996-C 9.50% 2015 (5) 240 279 .72
Jet Equipment Trust:
Series 1995-A, 11.44% 2014 (1) 300 405
Series 1994-A, 11.79% 2013 (1) 250 340 .42
United Air Lines, Inc. 10.67% 2004 500 599 .33
Airplanes Pass Through Trust, Class C, 8.15% 2019 (5) 499 525 .29
Forest Products & Paper - 2.04%
Pindo Deli Finance Mauritius Ltd.:
10.75% 2007 1,450 1,026
10.25% 2002 500 354 .77
Container Corp. of America 9.75% 2003 1,000 1,075 .60
Norampac Inc. 9.375% 2008 C$1,000 702 .39
Fort James Corp. 6.625% 2004 $500 506 .28
Energy & Related Companies - 1.97%
Pioneer Natural Resources Co. 7.20% 2028 1,500 1,499 .83
Petrozuata Finance Inc. 7.63% 2009 (1) 750 770 .43
J. Ray McDermott, SA 9.375% 2006 500 535 .30
McDermott Inc. 9.375% 2002 400 428 .24
Kelley Oil & Gas Corp. 10.375% 2006 (1) 300 306 .17
Cable & Telephone in the United Kingdom - 1.81%
COLT Telecom Group PLC:
10.125% 2007 GBP1,000 1,784
8.875% 2007 DM 750 457
0%/12.00% 2006 (2) $250 197 1.36
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 (2) 650 535 .30
NTL Inc. (formerly International CableTel Inc.), Series B, 10.00% 2007 250 267 .15
Banking & Thrifts - 1.80%
Imperial Capital Trust I, Series A, 9.98% 2026 550 629 .35
Dime Capital Trust I, Series A, 9.33% 2027 500 574 .32
First Nationwide Holdings Inc. 10.625% 2003 500 558 .31
Riggs Capital Trust II 8.875% 2027 500 555 .31
Chevy Chase Bank, FSB 9.25% 2008 500 513 .29
Advanta Capital Trust I 8.99% 2026 500 395 .22
Asset- Backed Obligations (5) - 1.65%
California Infrastructure and Economic Development Bank Special Purpose Trust,
PG&E-1, Series 1997-1, Class A-8, 6.48% 2009 2,000 2,051 1.14
FIRSTPLUS Home Loan Owner Trust, Series 1997-1,
Class A-6, 6.95% 2015 500 510 .28
EQCC Home Equity Loan Trust, Asset-Backed Certificates, Series 1996-A,
Class A-2, 6.95% 2012 300 302 .17
IMC Home Equity Loan Trust, Series 1996-2,
Class A-2, 6.78% 2011 97 97 .06
Utilities: Electric & Gas - 1.42%
Cia. de Transporte de Energia Electrica en Alta Tension
TRANSENER SA 9.25% 2008 (1) 1,500 1,451 .81
Israel Electric Corp. Ltd. 7.75% 2027 (1) 620 632 .35
Commonwealth Edison Co., Series 75, 9.875% 2020 400 475 .26
Manufacturing & Materials - 1.27%
Hyundai Semiconductor America, Inc. 8.625% 2007 (1) 700 571 .32
Printpack, Inc. 10.625% 2006 500 535 .30
Fairchild Semiconductor Corp. 10.125% 2007 500 518 .29
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 500 395 .22
Kaiser Aluminum & Chemical Corp. 9.875% 2002 250 257 .14
Leisure, Tourism & Restaurants - 1.15%
Royal Caribbean Cruises Ltd.:
7.25% 2018 1,000 1,012
7.00% 2007 500 508 .85
Rio Hotel & Casino, Inc. 9.50% 2007 500 535 .30
Real Estate - 0.84%
Security Capital Pacific Trust 7.20% 2013 500 509 .28
EOP Operating LP, 6.625% 2005 (1) 500 502 .28
Irvine Apartment Communities, LP 7.00% 2007 500 501 .28
Food & Household Products - 0.68%
GRUMA, SA de CV 7.625% 2007 1,000 982 .55
Fage Dairy Industry SA 9.00% 2007 250 243 .13
Machinery & Engineering - 0.62%
United Defense Industries, Inc. 8.75% 2007 800 808 .45
Deere & Co. 8.95% 2019 250 299 .17
Beverages & Tobacco - 0.58%
Sparkling Spring Water Group Ltd. 11.50% 2007 1,000 1,050 .58
Insurance - 0.42%
Jefferson-Pilot Corp. 8.14% 2046 (1) 700 755 .42
Chemicals - 0.31%
Texas Petrochemicals Corp. 11.125% 2006 500 550 .31
Miscellaneous Services - 0.30%
Petro Stopping Centers, LP, Petro Financial Corp. 10.50% 2007 500 535 .30
Multi-Industry - 0.25%
Reliance Industries Ltd.:
10.25% 2097 (1) 250 229
Series B, 10.25% 2097 250 229 .25
Business & Public Services - 0.15%
Allied Waste North America, Inc. 10.25% 2006 250 276 .15
Appliances & Household Durables - 0.12%
Samsung Electronics Co., Ltd. 7.45% 2002 (1) 250 221 .12
Independent Power Producers - 0.12%
California Energy Co., Inc. 9.875% 2003 200 216 .12
Non-U.S. Governments & Governmental
Authorities - 2.87%
Canadian Government:
4.644% 2021 (3) C$2,000 1,586
4.25% 2026 (3) 1,000 756 1.30
Panama (Republic of) 8.875% 2027 $1,250 1,194 .66
Argentina (Republic of) 9.75% 2027 525 484 .27
United Mexican States Government Eurobonds, Global, 11.375% 2016 250 286 .16
Mendoza (Province of) 10.00% 2007 (1) 250 239 .13
Poland (Republic of) Past Due Interest Bond 4.00% 2014 (4) 250 227 .13
Brazil (Federal Republic of):
Capitalization Bond 8.00% 2014 (6) 250 195
Capitalization Bearer Bond 8.00% 2014 (6) 40 31 .13
Deutschland Republic 8.00% 2002 DM 250 159 .09
Federal Agency Obligations - Mortgage Pass-Throughs (4) - 5.28%
Government National Mortgage Assn.:
6.50% 2025-2028 1,214 1,208
5.00% 2026 (4) $899 915
6.00% 2026 (4) 829 846
10.00% 2019 628 696
9.50% 2021 630 683
7.00% 2026 490 498 2.70
Fannie Mae:
6.50% 2013-2026 1,246 1,251
6.00% 2013 990 978
10.00% 2018-2021 865 949
6.213% 2033 (4) 855 860
9.00% 2021 551 589 2.58
Federal Agency Obligations-Other - 0.50%
Freddie Mac:
6.78% 2005 500 499
5.78% 2003 400 393 .50
U.S. Treasury Obligations - 17.28%
6.25% 2003 18,000 18,472
7.25% 2004 5,000 5,413
5.875% 1999 2,000 2,008
8.875% 2017 1,250 1,675
10.375% 2009-2012 1,000 1,289
7.50% 2016 1,000 1,179
3.597% 2002 (3), (4) 1,000 1,001 17.28
-------- --------
TOTAL BONDS & NOTES (cost: $141,725,000) 143,861 80.12
-------- -------
Shares
or Principal
Amount (000)
Stocks
Common & Preferred Stocks - 8.32%
SB Treasury Co., LLC 9.40% preferred, Series A (1) $4,500 4,395 2.45
American Radio Systems Corp. 11.375% exchangeable preferred (6) 18,423 2,100 1.17
BNP U.S. Funding Co. LLC 7.738% noncumulative preferred, Series A (1) $1,300 1,319 .73
Swire Pacific Offshore Financing Ltd. 9.33% cumulative guaranteed
perpetual capital securities (Hong Kong) (1) 25,000 541
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual
capital securities (Hong Kong) (1) 20,000 440 .54
Security Capital Industrial Trust, Series D, 7.92% cumulative redeemable 40,000 975 .54
Tokai Preferred Capital Co. LLC 9.98% (1) $1,000 928 .52
IBJ Preferred Capital Co. LLC 8.79% noncumulative preferred
securities, Series A (1) $1,000 886 .50
Time Warner Inc. 10.25% exchangeable preferred, Series M 594 670 .37
Adelphia Communications Corp. 13.00% exchangeable preferred,
Series A (7) 5,000 595 .33
NB Capital Corp. 8.35% preferred, Series A (Canada) 500 522 .29
SocGen Real Estate Co. LLC 7.64%/8.40% preferred, Series A $500 504 .28
CarrAmerica Realty Corp. 8.57% redeemable preferred, Series B 20,000 491 .27
NEXTEL Communications, Inc.:
13.00% exchangeable preferred, Series D, (6), (7) 274 309
Class A (7) 774 18 .18
Esat Telecom Group PLC, warrants, expire 2007 (Ireland) (1), (7) 2,000 70 .04
Globalstar Telecommunications Ltd., warrants, expire 2004 (7) 500 65 .04
Iridium World Communications Ltd. warrants, expire 2005 (1), (7) 250 49 .03
COLT Telecom Group PLC, warrants, expire 2006 (United Kingdom) (1), (7) 250 32 .02
Conecel Holdings Ltd., Class B, warrants, expire 2000 (Ecuador) (1), (7) 8,100 20 .01
Cellular Communications International, Inc., warrants, expire 2003 (7) 250 9 .01
McCaw International, Ltd., warrants, expire 2007 (1), (7) 2,000 7 .00
Orion Network Systems, Inc., warrants, expire 2007 (7) 250 4 .00
-------- --------
TOTAL STOCKS (cost: $14,622,000) 14,949 8.32
-------- --------
Principal
Convertible Debentures Amount (000)
Industrials & Services - 1.05%
Sunglass Hut International, Inc. 5.25% 2003 $600 498 .28
Bell Atlantic Financial Services, Inc. 5.75% senior exchangeable note 2003 (1) 480 497 .28
Kelley Oil & Gas Corp. 8.50% 2000 500 494 .27
MBI Finance Ltd. 0% 2001 500 303 .17
Time Warner Inc. 0% 2013 150 90 .05
Miscellaneous
Other equities in initial period of acquisition 945 .52
-------- --------
TOTAL CONVERTIBLE DEBENTURES (cost: $2,742,000) 2,827 1.57
-------- --------
TOTAL EQUITY SECURITIES (cost: $17,364,000) 17,776 9.89
-------- --------
Short-Term Securities
Corporate Short-Term Notes - 9.21%
Consolidated Natural Gas 5.50% due 6/2/98 2,900 2,899 1.62
Campbell Soup Co. 5.49% due 7/13/98 2,800 2,782 1.55
Associates Corp. of North America 5.64% due 6/1/98 2,500 2,499 1.39
Kimberly-Clark Corp. 5.49% due 7/17/98 (1) 2,500 2,482 1.38
Ford Motor Credit Co. 5.48% due 6/17/98 2,200 2,194 1.22
BellSouth Telecommunications Inc. 5.52% due 7/23/98 2100 2,083 1.16
Xerox Corp. 5.47% due 6/26/98 1600 1,594 .89
-------- -------
TOTAL SHORT-TERM SECURITIES (cost: $16,533,000) 16,533 9.21
-------- -------
TOTAL INVESTMENT SECURITIES (cost: $175,622,000) 178,170 99.22
Excess of cash and receivables over payables 1,404 .78
--------- -------
NET ASSETS $179,574 100.00%
--------- ---------
--------- ---------
1 Purchased in a private placement transaction;
resale to the public may require registration or sale
only to qualified institutional buyers.
2 Step bond; coupon rate will increase at a later date.
3 Index-linked bond, which is a floating rate bond whose principal amount
moves with a government retail price index.
4 Coupon rate changes periodically.
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 Payment in kind. The issuer has the option of paying additional
securities in lieu of cash.
7 Non-income-producing securities.
See Notes to Financial Statements
</TABLE>
<TABLE>
AMERICAN VARIABLE INSURANCE SERIES
HIGH-YIELD BOND FUND
INVESTMENT PORTFOLIO - MAY 31, 1998
CORPORATE BONDS 82.35%
NON-U.S. GOVERNMENT BONDS 1.83%
EQUITY SECURITIES 8.10%
CASH & EQUIVALENTS 7.72%
<S> <C> <C> <C>
Percent
of Net
Largest Corporate Holdings Assets
NEXTEL Communications 4.22%
NTL 4.09
Chancellor Media/Chancellor Radio Broadcasting 2.48
Container Corp. of America 2.23
Omnipoint 2.23
Integrated Health 2.18
COLT Telecom 1.89
CellNet Data Systems 1.66
Paracelsus Healthcare 1.62
American Radio Systems 1.51
Principal Market Percent
Amount Value Of Net
Bonds & Notes (000) (000) Assets
Cellular, Paging & Wireless Communications - 17.01%
NEXTEL Communications, Inc.:
0%/9.95% 2008(1) (2) $14,000 $8,837 2.27%
0%/10.65% 2007(1) 5,000 3,325
0%/9.75% 2007(1) 4,500 2,903
0%/9.75% 2004(1) 750 726
NEXTEL International., Inc. (owned by NEXTEL Communications, Inc.)
0%/12.125% 2008 (1), (2) 6,000 3,540
Omnipoint Corp.:
11.625% 2006 14,125 15,114 2.01
8.875% 2006 2,000 2,000
CellNet Data Systems, Units, 0%/14.00% 2007 (1) 22,257 12,575 1.48
Clearnet Communications Inc.:
0%/11.75% 2007(1) C$ 20,825 9,510 1.46
0%/10.40% 2008 (1) 7,000 2,884
Orion Network Systems, Inc. Units, 11.25% 2007 $10,750 12,174 1.43
PriCellular Wireless Corp.:
0%/12.25% 2003(1) 6,000 6,540 1.16
10.75% 2004 2,000 2,290
14.00% 2001 935 1,026
Centennial Cellular Corp. 8.875% 2001 8,000 8,340 .98
Cellular Communications of Puerto Rico, Inc. 10.00% 2007 7,250 7,304 .86
CTI Holdings SA 0%/11.50% 2008 (1), (2) 10,500 6,011 .71
PageMart Wireless, Inc. 0%/11.25% 2008 (1) 9,650 5,983 .70
American Cellular Corp. 10.50% 2008 (2) 5,250 5,237 .62
McCaw International, Ltd. 0%/13.00% 2007(1) 6,500 4,322 .51
Comcast Cellular Holdings, Inc., Series B, 9.50% 2007 4,000 4,120 .48
Mobile Telecommunication Technologies Corp. 13.50% 2002 3,500 4,060 .48
Comunicacion Celular SA 0%/13.125% 2003(1) 5,000 3,875 .46
Occidente y Caribe Celular Wireless SA 0%/14.00% 2004 (1) 3,700 2,831 .33
Telesystem International Wireless Inc. 0%/13.25% 2007(1) 3,450 2,312 .27
Western Wireless Corp. 10.50% 2006 1,500 1,613 .19
PTC International Finance BV 0%/10.75% 2007 (1) 2,000 1,400 .16
Sprint Spectrum LP, Sprint Spectrum Finance Corp. 11.00% 2006 1,000 1120 .13
Vanguard Cellular Systems, Inc. 9.375% 2006 1,000 1,045 .12
Globalstar, LP 11.375% 2004 1,000 1,000 .12
MobileMedia Communications, Inc. 0%/10.50% 2003(1) 3,500 700 .08
Diversified Media, Cable Television &
Telecommunications - 12.56%
Viatel Inc., units:
11.25% 2008 (2) 6,000 6,240 1.44
11.15% 2008 DM6,000 3,513
0%/12.50% 2008 (1), (2) $4,250 2,529
Falcon Holding Group, LP:
8.375% 2010 (2) 6,250 6,141 1.09
0%/9.285% 2010 (1), (2) 5,000 3,112
Nextlink Communications LLC:
Nextlink Communications, Inc.:
9.625% 2007 3,500 3,570 .91
9.00% 2008 (2) 3,000 3,030
Nextlink Capital, Inc. 12.50% 2006 1,000 1,140
Qwest Communications International Inc.:
0%/8.29% 2008 (1),(2) 4,750 3,349 .77
10.875% 2007 1,500 1,721
0%/9.47% 2007(1) 2,000 1,475
Century Communications Corp. 0% 2008 13,650 6,006 .71
Hermes Euro Railtel BV 11.50% 2007 5,000 5,700 .67
KMC Telecom Holdings, Inc., units 0%/12.50% 2008 (1) (2) 9,500 5,676 .67
Teligent, Inc. 11.50% 2007 5,125 5,215 .61
Adelphia Communications Corp., Series B, 9.25% 2002 5,000 5,137 .60
Verio Inc.:
10.375% 2005 (2) 3,750 3,900 .59
13.50% 2004 (2) 1,000 1,163
Cablevision Systems Corp.:
9.875% 2013 3,000 3,277 .51
8.125% 2009 1,000 1,045
Netia Holdings BV:
0%/11.25% 2007(1),(2) 3,500 2,419 .46
10.25% 2007(2) 1,500 1,487
Global TeleSystems Group, Inc. 9.875% 2005 3,600 3,726 .44
GST Equipment Funding, Inc. 13.25% 2007 3000 3450 .40
Fox/Liberty Networks, LLC:
0%/9.75% 2007 (1) 4,000 2,700 .38
8.875% 2007 500 506
Multicanal Participacoes SA, 12.625% 2004 3,000 3,173 .37
V2 Music (Holdings) PLC:
0%/14.00% 2008 (1), (2) 4,500 2,318 .37
0%/14.00% 2008 (1) Pound1,000 841
Newsquest Capital PLC:
11.00% 2006 $1,800 2,034 .36
Series B, 11.00% 2006 900 1,017
Lenfest Communications, Inc. 8.25% 2008 (2) 3,000 3,004 .35
Consorcio Ecuatoriano de Telecomunicaciones SA CONECEL:
14.00% 2000(2) 1,000 1,005 .21
14.00% 2002 750 754
Level 3 Communications, Inc. 9.125% 2008 (2) 1,500 1,457 .17
Intermedia Communications Inc. 0%/11.25% 2007(1) 2,000 1,452 .17
Comtel Brasileira Ltda. 10.75% 2004(2) 1,000 980 .12
East Telecom Group PLC 0%/12.50% 2007(1) 1,250 925 .11
TEVECAP SA 12.625% 2004 750 713 .08
Manufacturing & Materials - 9.08%
BREED Technologies, Inc. 9.25% 2008 (2) 8,500 8,500 1.00
Anchor Glass Container Corp.:
11.25% 2005 5,000 5,387 .93
9.875% 2008 (2) 2,500 2,500
Flextronics International Ltd. 8.75% 2007 7,250 7,322 .86
Impress Metal Packaging Holdings BV 9.875% 2007 DM10,250 6,030 .71
Fairchild Semiconductor Corp. 10.125% 2007 $5,250 5,434 .64
Boyds Collection Ltd. 9.00% 2008 (2) 5,250 5,269 .62
Tekni-Plex, Inc. 9.25% 2008 (2) 4,500 4,511 .53
Lifestyle Furnishings International Ltd. 10.875% 2006 4,000 4,460 .52
Kaiser Aluminum & Chemical Corp. 12.75% 2003 3,850 4,115 .48
Consumers International Inc. 10.25%/11.75% 2005(2) 3,250 3,510 .41
Westinghouse Air Brake Co. 9.375% 2005 3,000 3,158 .37
Key Plastics, Inc., Series B, 10.25% 2007 3,000 3,135 .37
Texas Petrochemicals Corp. 11.125% 2006 2,750 3,025 .35
Samsung Electronics Co., Ltd. 7.45% 2002 (2) 3,150 2,780 .33
Printpack, Inc. 10.625% 2006 2,250 2,408 .28
Advanced Micro Devices, Inc. 11.00% 2003 2,000 2,140 .25
Doe Run Resources Corp. 11.25% 2005 (2) 2,000 2,040 .24
DGS International Finance Co. BV 10.00% 2007(2) 2,000 1,590 .19
Cable & Telephone in the United Kingdom - 7.03%
NTL Inc.:
0%/10.875% 2003 (1) 13,250 13,184 4.09
0%/10.75% 2008 (1) Pounds 10,500 10,375
9.50% 2008 3,750 6,109
0%/9.75% 2008 (1) (2) $5,500 3,568
Series B, 10.00% 2007 1,500 1,605
COLT Telecom Group PLC:
0%/12.00% 2006 (1) 11,250 8,888 1.72
8.875% 2007 DM6,500 3,960
10.125% 2007 Pound1,000 1,784
Comcast UK Cable Partners Ltd. 0%/11.20% 2007(1) $10,000 8,225 .97
TeleWest Communications PLC 9.625% 2006 2,000 2,100 .25
Broadcasting & Publishing - 6.79%
Chancellor Media Corp:
12.00% 2009 7276 8904 2.48
Series B, 8.75% 2007 6,000 6,165
8.125% 2007 (2) 4500 4500
Chancellor Radio Broadcasting Co. 9.375% 2004 1500 1560
Acme Intermediate Holdings, LLC, 0%/12.00% 2005(1) 8,911 5,436 .64
American Radio Systems Corp. 9.00% 2006 4,750 5,082 .60
Ziff-Davis Inc. 8.50% 2008 5,000 5,037 .59
Globo Comunicacoes E Participacoes LTDA. 10.50% 2006(2) 4,600 4,531 .53
Big City Radio, Inc. 0%/11.25% 2005 (1), (2) 6,000 4,440 .52
Gray Communications Systems, Inc. 10.625% 2006 2,750 3,011 .35
Antenna TV, SA 9.00% 2007 2,750 2,778 .33
Young Broadcasting Inc. 10.125% 2005 2,000 2,130 .25
Sun Media Corp. 9.50% 2007 1,300 1,381 .16
STC Broadcasting, Inc. 11.00% 2007 1,250 1,369 .16
RBS Participacoes SA 11.00% 2007(2) 1,000 980 .12
TransWestern Publishing Company 9.625% 2007 500 515 .06
Forest Products & Paper - 5.43%
Container Corp. of America:
9.75% 2003 14,600 15,695 2.23
Series A, 11.25% 2004 2,000 2,165
Series B, 10.75% 2002 1,000 1,095
Graham Packaging Co., GPC Capital Corp. I 8.75% 2008 (2) 3,250 3,242 .69
Graham Packaging Holdings Co. 0%/10.75% 2009 (1) (2) 4,250 2,667
Advance Agro PCL 13.00% 2007 (2) 4,500 4,522 .53
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 2,900 2,349 .49
10.00% 2007 2,550 1,785
Paperboard Industries International Inc. 8.375% 2007 4,000 4,050 .47
Norampac Inc. 9.375% 2008 C$ 4,000 2,809 .33
Pindo Deli Finance Mauritius Ltd.:
10.75% 2007 $2,200 1,556 .31
10.25% 2002 1,500 1,061
MAXXAM Group Inc. 11.25% 2003 2,000 2,110 .25
Copamex Industrias, Series B, SA de CV 11.375% 2004 1,000 1,078 .13
Health & Personal Care - 4.66%
Integrated Health Services, Inc.:
10.25% 2006 5,000 5,300 1.71
Series A:
9.50% 2007 4,750 4,928
9.25% 2008 4,250 4,356
Paracelsus Healthcare Corp. 10.00% 2006 13,500 13,770 1.62
Mariner Health Group, Inc. 9.50% 2006 6,625 7,089 .84
Unison HealthCare Corp. 13.00% 2006(2), (3) 6,600 2,640 .31
Tenet Healthcare Corp. 8.00% 2005 1,500 1,545 .18
Leisure, Tourism & Restaurants - 3.97%
AMF Group Inc.:
10.875% 2006 4,750 5,225 1.06
0%/12.25% 2006 (1) 4,716 3,820
Boyd Gaming Corp. 9.25% 2003 6,250 6,578 .78
Hard Rock Hotel, Inc. 9.25% 2005 (2) 6,000 6,120 .72
William Hill Finance PLC 10.625% 2008 Pound1,550 2,513 .30
Rio Hotel & Casino, Inc. 10.625% 2005 $2,250 2,430 .29
Premier Parks, Inc. 0%/10.00% 2008 (1), (2) 3,750 2,391 .28
Friendly Ice Cream Corp. 10.50% 2007 2,000 2,130 .25
FelCor Suites LP 7.375% 2004 1,750 1,720 .20
Sun International Hotels Ltd., Sun International
North America, Inc. 9.00% 2007 750 787 .09
Food & Food Retailing - 3.25%
Fage Dairy Industry SA 9.00% 2007 10,500 10,211 1.20
Home Products International, Inc. 9.625% 2008 (2) 6,500 6,598 .77
Randall's Food Markets, Inc. 9.375% 2007 4,750 4,987 .59
Carr-Gottstein Foods Co. 12.00% 2005 3,000 3,345 .39
Favorite Brands International, Inc. 10.75% 2006 (2) 2,500 2,544 .30
Energy & Related Companies - 3.23%
Kelley Oil & Gas Corp.:
10.375% 2006 7,000 7,105 .95
10.375% 2006 (2) 1,000 1,020
Benton Oil and Gas Co.:
9.375% 2007 3,000 2,940 .59
11.625% 2003 2,000 2,110
Pogo Producing Co. 8.75% 2007 4,250 4,345 .51
Forcenergy Inc:
9.50% 2006 2,250 2,301 .50
8.50% 2007 2,000 1,940
McDermott Inc. 9.375% 2002 2,250 2,410 .28
Lomak Petroleum, Inc. 8.75% 2007 2,250 2,284 .27
J. Ray McDermott, SA 9.375% 2006 1,000 1,070 .13
Beverages - 2.44%
Sparkling Spring Water Group, Ltd. 11.50% 2007 5,500 5,775 .68
Delta Beverage Group, Inc. 9.75% 2003 5,200 5428 .64
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 3,750 3,834 .63
8.75% 2003 1,500 1,523
Standard Commercial Corp. 8.875% 2005 4,250 4,186 .49
Miscellaneous Services - 2.33%
Allied Waste North America, Inc. 10.25% 2006 8,300 9,151 1.08
Teletrac, Inc. 14.00% 2007 4,100 3,936 .46
Petro Stopping Centers, LP, Petro Financial Corp. 10.50% 2007 2,750 2,942 .34
Iron Mountain Inc.:
10.125% 2006 1,500 1,635 .23
8.75% 2009 350 358
EarthWatch Inc., units, 12.50% 2001(2),(3) 2,000 1,600 .19
Reliance Industries Ltd. 10.50% 2046 (2) 250 234 .03
Banking & Financial Services - 1.46%
Amresco Inc., Series 1998-A, 9.875% 2005 (2) 6,000 6,150 .72
Wharf International Finance Ltd. 7.625% 2007 3,000 2,549 .30
Wilshire Financial Services Group Inc. 13.00% 2004 1,500 1,620 .19
Ocwen Financial Corp. 11.875% 2003 1,250 1,406 .16
Komercni Finance BV 9.00%/10.75% 2008 (1) (2) 750 739 .09
Transportation - 1.26%
Teekay Shipping Corp. 8.32% 2008 3,500 3,605 .42
USAir, Inc. Pass-through-trust, Series 1993-A3, 10.375% 2013(4) 3,000 3,371 .40
Northwest Airlines, Inc. 7.625% 2005 (2) 2,500 2,497 .29
Delta Air Lines, Inc., Series 1991-I, 10.00% 2014(2) 1,000 1,274 .15
Protection Services - 0.56%
Borg-Warner Security Corp. 9.625% 2007 2,250 2,520 .29
Protection One Alarm Monitoring, Inc. 0%/13.625% 2005(1) 2,000 2,275 .27
Machinery & Engineering - 0.54%
LES, Inc. 9.25% 2008 (2) 4,500 4,568 .54
Private Issue Collateralized Mortgage/Asset-Backed Obligations (4)- 0.45%
Kmart Corp., Series K-2, 9.78% 2020 2,000 2,230 .26
Dr Structured Finance Corp., Series 1994 K-2, 9.35% 2019 1,500 1,611 .19
Textiles & Apparel - 0.30%
Tultex Corp. 10.625% 2005 2,500 2,581 .30
Non-U.S. Governments & Governmental
Authorities - 1.83%
Argentina (Republic of):
11.00% 2006 1,500 1601 .54
9.75% 2027 1,450 1336
11.375% 2017 1,000 1072
11.75% 2007 ARP 650 634
Panama (Republic of):
Interest Reduction Bond 3.75% 2014(2),(5) $3,000 2316 .50
Global 8.875% 2027 2000 1911
United Mexican States Government 11.375% 2016 2750 3145 .37
Philippines (Republic of) 8.875% 2008 1750 1695 .20
Korea (Republic of) 8.875% 2008 1,000 933 .11
Poland (Republic of) Past Due Interest Bond 4.00% 2014(5) 1,000 907 .11
-------- --------
TOTAL BONDS & NOTES (cost: $692,300,000) 716,432 84.18
-------- -------
Number
of
Stocks Shares
Common & Preferred Stocks - 6.72%
NEXTEL Communications, Inc. 11.125% 2010 (2), (6), (7) 11,850 12,176 1.95
NEXTEL Communications, Inc., Series D, 13.00% exchangeable preferred(6),(7) 3,828 4,307
NEXTEL Communications, Inc. Class A(6) 5,422 128
NEXTEL Communications, Inc., warrants, expire 1999(3),(6) 9,500 13
American Radio Systems Corp. 11.375% exchangeable preferred(2),(7) 67,823 7,732 .91
Tokai Preferred Capital Co. LLC 9.98% noncumulative preferred, Series A 5,000 4,638 .55
Time Warner Inc. 10.25% exchangeable preferred, Series M 3,568 4,023 .47
IXC Communications, Inc. 12.50% exchangeable preferred 2009 (6) (7) 2,654 3,053 .36
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed
perpetual capital securities (Hong Kong) (2) 125,000 2,750 .33
IBJ Preferred Capital Co. LLC 8.79% noncumulative preferred, Series A (2) 2,500 2,215 .26
Kelley Oil & Gas Corp., convertible preferred 90,000 2,137 .25
Chevy Chase Preferred Capital Corp., 10.375% exchangeable preferred 39,000 2,125 .25
Jacor Communications, Inc.(6) 35,000 1,850 .22
Omnipoint Corp. 7.00% covertible preferred (2) 40,000 1,845 .22
CellNet Data Systems, Inc.(3),(6) 112,000 907 .18
CellNet Data Systems, Inc., warrants, expire 2007 (2), (6) 20,870 626
COLT Telecom Group PLC, warrants, expire 2006 (2), (6) 11,250 1,451 .17
Adelphia Communications Corp., preferred, Series B, 13.00% 2009 (6) 10,000 1,190 .14
Cellular Communications International, Inc. (6) 15,300 721 .11
Cellular Communications International,Inc., warrants, expire 2003 (6) 6,500 227
Fuji JGB Investment LLC 9.87% noncumulative preferred, Series A (Japan)(2) 1,000 868 .10
Acme Television LLC (2),(6) 362 362 .04
Acme Intermediate Holdings, LLC (2), (6) 5,970 358 .04
Comunicacion Celular SA, Class B, warrants, expire 2003(Columbia) (2),(6) 5,000 350 .04
Verio Inc., warrants, expire 2004 (2), (6) 8,000 272 .03
Orion Network Systems, Inc., warrants, expire 2007 (6) 11,250 183 .02
EarthWatch Inc. 12.00% convertible preferred, Series C(2),(3),(6),(7) 350,000 175 .02
Teletrac Holdings, Inc., warrants, expire 2007 (2), (6) 4,100 164 .02
Globalstar Telesystem, warrants, expire 2004 (6) 1,000 131 .02
Protection One Alarm Monitoring, Inc., warrants, expire 2005(2),(6) 6,400 77 .01
Telecom Group PLC, warrants, expire 2007(2),(6) 1,250 44 .01
Conecel Holdings Ltd., Class B, warrants, expire 2000 (Ecuador)(2), (6) 13,500 34 .00
McCaw International, Ltd., warrants, expire 2007(2),(6) 2,500 9 .00
Heartland Wireless Communications, Inc., warrants, expire 2000(2),(6) 18,000
Miscellaneous - 0.18%
Other stocks in initial period of acquisition 1,533 .18
-------- --------
TOTAL STOCKS (cost: $58,724,000) 58,674 6.90
-------- --------
Principal Market Percent
Amount Value Of Net
Convertible Debentures (000) (000) Assets
Industrials & Services - 1.20%
Integrated Health Services, Inc. 5.75% 2001 $ 3,500 4,043 .47
Jacor Communications, Inc. 0% 2018 7,250 2,991 .35
Pilipino Telephone International Holding Corp. 1.75% 2006 1,875 1,481 .17
MBI Finance Ltd. 0% 2001 1,500 907 .11
Sunglass Hut International, Inc. 5.25% 2003 1,000 830 .10
-------- --------
TOTAL CONVERTIBLE DEBENTURES (cost: $9,489,000) 10,252 1.20
-------- --------
TOTAL EQUITY SECURITIES (cost: $68,213,000) 68,926 8.10
-------- --------
Short-Term Securities
Corporate Short-Term Notes - 5.36%
E.I. du Pont de Nemours and Co. 5.48%-5.49% due 6/18-7/17/98 25,300 25,178 2.96
Motorola, Inc. 5.46%-5.48% due 6/09-7/10/98 15,000 14,933 1.75
General Electric Capital Corp. 5.65% due 6/01/98 5,500 5,499 .65
-------- -------
TOTAL SHORT-TERM SECURITIES (cost: $45,610,000) 45,610 5.36
-------- -------
TOTAL INVESTMENT SECURITIES (cost: $806,123,000) 830,968 97.64
Excess of cash and receivables over payables 20,072 2.36
--------- -------
NET ASSETS $851,040 100.00%
========= =======
(1) 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) 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.
(5) Coupon rate changes periodically.
(6) Non-income-producing securities.
(7) Payment in kind. The issuer has the option of
paying additional securities in lieu of cash.
</TABLE>
<TABLE>
American Variable Insurance Series
U.S. Government/AAA-Rated Securities Fund
Investment Portfolio, May 31, 1998
(Unaudited)
- ------------------------------------------------ -------- -------- --------
<S> <C> <C> <C>
U.S. TREASURY BONDS 36.93%
FEDERAL AGENCY MORTGAGE-RELATED SECURITIES 29.68
PRIVATE MORTGAGE & ASSET-BACKED SECURITIES 27.80
CASH & EQUIVALENTS 2.72
CORPORATE BONDS 2.41
OTHER FEDERAL OBLIGATIONS .46
- ------------------------------------------------ -------- -------- --------
Principal Market Percent
Amount Value of Net
Bonds & Notes (000) (000) Assets
- ------------------------------------------------ -------- -------- --------
U.S. Treasury Obligations - 36.93%
8.875% 2017 $32,800 $43,952
10.375% 2009 27,500 34,272
7.25% 2004 31,400 33,956
10.75% 2003 23,150 28,192
12.00% 2013 10,000 14,738
7.125% 2023 7,500 8,678
7.50% 2005 4,800 5,292
3.77% 2007 (1) 3,750 3,723
14.25% 2002 2,000 2,572
11.625% 2004 1,250 1,649 36.93%
3.66% 2028 (1) 1,000 997
Federal Agency Obligations - Mortgage
Pass-Throughs (2) - 24.95%
Fannie Mae :
8.00% 2024-2028 13,504 14,056
7.50% 2009-2028 9,906 10,180
8.50% 2023-2027 8,658 9,102
6.50% 2013-2028 8,500 8,513
6.00% 2013 5,445 5,380
7.00% 2028 4,000 4,056 13.21
13.00% 2015 3,000 3,601
10.00% 2018 3,216 3,524
9.00% 2011-2025 2,472 2,631
12.00% 2028 2,250 2,628
Government National Mortgage Assn.:
8.50% 2021-2026 9,636 10,263
6.875% 2021-2024 8,403 8,612
7.00% 2018-2023 7,048 7,258
9.50% 2019-2021 4,454 4,826
7.375% 2024 2,786 2,859
10.00% 2019 2,510 2,784 8.63
6.00% 2013 2,273 2,254
8.00% 2026-2028 1,367 1,421
9.00% 2009-2016 1,063 1,143
10.50% 2019 132 148
11.00% 2019 39 43
12.00% 2012-2014 7 7
Freddie Mac :
6.00% 2013 5,000 4,947
8.25% 2008-2009 3,359 3,496
6.50% 2013 2,250 2,265
7.00% 2008 2,186 2,237 3.11
9.00% 2021-2022 1,363 1,451
8.50% 2018 447 473
9.50% 2016 93 100
12.00% 2016 1 2
Collateralized Mortgage Obligations
(Privately Originated) (2) - 21.40%
Prudential-Bache CMO Trust III 9.44% 2018 14,000 14,298 2.97
Westam Mortgage, Class 4-H, 8.95% 2018 11,000 11,426 2.36
GE Capital Mortgage Services, Inc.:
Series 1994-15, Class A-10, 6.00% 2009 8,000 7,645
Series 1995-10, Class A-1, 7.00% 2010 2,855 2,853 2.18
Ocwen Residential MBS Corp., Series 1998-R1,
Class AWC, 3.453% 2027 (3) 9,663 9,701 2.01
Nomura Asset Securities Corp., Series 1998-D6,
Class A-1A, 6.28% 2030 7,916 7,967 1.65
Morgan Stanley Capital I, Inc.:
Series 1997-HF1, Class A-1, 6.86% 2006 (3) 4,738 4,867
Series 1998-WF1, Class A-1, 6.25% 2007 2,586 2,596 1.55
Deutsche Mortgage & Asset Receiving Corp., Series 1998-C1,
Class A-1, 6.22% 2031 7,437 7,460 1.55
Mortgage Capital Funding, Inc., Series 1998-MC1,
Class A-1, 6.417% 2030 6,466 6,547 1.36
Structured Asset Securities Corp.:
Series 1998-RF, Class 1, 8.712% 2027 (3) 2,975 3,176
Series 1996-CFL, Class A1-C, 5.944% 2028 3,008 2,994 1.28
Merrill Lynch Mortgage Investors, Inc.:
Series 1997-C1, Class A-1, 6.95% 2029 2,869 2,953
Series 1995-C3, Class A-2, 6.822% 2025 (4) 1,500 1,528 .93
DLJ Mortgage Acceptance Corp.:
Series 1995-CF2, Class A-1, 6.85% 2027 (3) 2,250 2,310
Series 1996-CF1, Class A-1A, 7.28% 2028 1,728 1,788 .85
AMRESCO Commercial Mortgage Funding I Corp.,
Series 1997-C1, Class A-1, 6.73% 2029 3,838 3,903 .81
J.P. Morgan Commercial Mortgage Finance Corp., Series 1995-C1,
Class A2, 7.403% 2010 (4) 3,000 3,087 .64
Chase Commercial Mortgage Securities Corp., Series 1998-1,
Class A1, 6.34% 2030 3,000 3,029 .63
LB Commercial Conduit Mortgage Trust, Series 1998-C1,
Class A1, 6.33% 2030 1,964 1,977 .41
Ryland Acceptance Corp., Series 88, Class E, 7.95% 2019 1,028 1,066 .22
Asset-Backed Obligations (2) - 6.40%
Green Tree Financial Corp.:
Series 1995-9, Class A-5, 6.80% 2027 5,000 5,075
Series 1996-7, Class A-6, 7.65% 2027 3,000 3,168 3.20
Series 1997-6, Class A-6, 6.90% 2029 2,500 2,562
Series 1996-10, Class A-5, 6.83% 2028 2,500 2,544
Series 1995-3, Class A-5, 7.30% 2025 2,050 2,094
ContiMortgage Home Equity Loan Trust 1996-4,
Class A-4, 6.37% 2011 5,000 5,000 1.04
Bombardier Capital Mortgage Securitization Corp.:
Series 1998-A, Class A-3, 6.23% 2028 2,000 1,967
Series 1998-A, Class A-4, 6.65% 2028 1,000 1,003 .62
Standard Credit Card Master Trust 1994-4, Class A,
8.25% 2003 2,500 2,670 .55
Freddie Mac, Series 1998-A, Class A, 6.69% 2020 (3) 2,000 2,017 .42
EQCC Home Equity Loan Asset-Backed Certificates,
Series 1996-A, Class A-2, 6.95% 2012 2,000 2,014 .42
California Infrasturcture and Economic Development Bank Special
Purpose Trust, PG&E-1, Series 1997-1, Class A-6, 6.32% 2005 500 513 .11
IMC Home Equity Loan Trust, Series 1996-2,
Class A-2, 6.78% 2011 194 193 .04
Collateralized Mortgage Obligations
(Federal Agencies) (2) - 4.73%
Freddie Mac:
Series 1567, Class A, 6.088% 2023 (4) 8,987 8,650
Series 1948, Class PJ, 6.65% 2027 4,000 3,995
Series 1716, Class A, 6.50% 2009 2,250 2,199
Series 1507, Class JZ, 7.00% 2023 567 576 3.45
Series 2030, Class F6, 6.156% 2028 462 463
Series 83-B, Class B-3, 12.50% 2013 363 426
Series 1983, Class FB, 6.188% 2026 (4) 330 332
Fannie Mae:
Series 1997-M6, Class ZA, 6.85% 2026 5,263 5,301
Series 1994-4, Class ZA, 6.50% 2024 934 878 1.28
Development Authorities - 2.41%
Inter-American Development Bank 8.875% 2009 9,500 11,627 2.41
Federal Agency Obligations - Other - 0.46%
Freddie Mac 5.75% 2008 2,250 2,225 .46
-------------------
TOTAL BONDS & NOTES (cost: $459,171,000) 468,944 97.28
-------------------
Short-Term Securities
- ------------------------------------------------
Corporate Short-Term Notes - 10.93%
E.I. du Pont de Nemours and Co. 5.48% due 7/17/98 18,800 18,664 3.87
Ford Motor Credit Co. 5.50% due 7/1/98 17,500 17,417 3.62
Lucent Technologies Inc. 5.50% due 6/12/98 10,000 9,982 2.07
Emerson Electric Co. 5.47% due 6/1/98 4,400 4,399 .91
General Electric Capital Corp. 5.65% due 6/1/98 2,200 2,200 .46
-------------------
TOTAL SHORT-TERM SECURITIES (cost: $52,663,000) 52,662 10.93
-------------------
TOTAL INVESTMENT SECURITIES (cost: $511,834,000) 521,606 108.21
Excess of payables over cash and receivables 39,559 8.21
-------------------
NET ASSETS $482,047 100.00%
===================
(1) Index-linked bond, which is a floating rate
bond whose principal amount moves with a
government retail price index.
(2) 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.
(3) Purchased in a private placement transaction;
resale to the public may require registration or sale only to
qualified institutional buyers.
(4) Coupon rate may change periodically.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
Cash Management Fund
Investment Portfolio, May 31, 1998 (Unaudited)
Principal Market
Amount Value Percent of
Short-Term Securities (000) (000) Net Assets
<S> <C> <C> <C>
Corporate Short-Term Notes - 74.01%
Bestfoods 5.50% due 6/19/98 (1) $ 9,000 $ 8,974 3.37%
American Express Credit Corp. 5.48%-5.51% due 7/9-7/20/98 7500 7451 2.80
Coca-Cola Co. 5.49% due 7/24/98 7,400 7,339 2.76
International Lease Finance Corp. 5.47% due 7/15/98 7,300 7250 2.73
H.J. Heinz Co. 5.48%-5.49% due 6/12-6/19/98 7,170 7154 2.69
Campbell Soup Co. 5.49% due 7/13/98 7,200 7,153 2.69
Duke Energy Corp. 5.49% due 6/8/98 6,300 6292 2.36
Emerson Electric Co. 5.47% due 6/11/98 6,300 6290 2.36
Ford Motor Credit Co. 5.48%-5.51% due 6/9-6/17/98 6,300 6,289 2.36
Shell Oil Co. 5.47% due 6/12/98 6,300 6289 2.36
Procter & Gamble Co. 5.46%-5.47% due 6/4-6/24/98 6,200 6187 2.33
Monsanto Co. 5.48% due 6/18/98 (1) 6,100 6083 2.29
John Deere Capital Corp. 5.50% due 6/15/98 6,000 5,986 2.25
Lucent Technologies Inc. 5.47%-5.50% due 6/15-6/25/98 6,000 5982 2.25
Colgate-Palmolive Co. 5.49% due 6/30/98 (1) 6,000 5,973 2.25
Bell Atlantic Financial Services, Inc. 5.52% due 7/10/98 6,000 5,963 2.24
Baltimore Gas & Electric Co. 5.50% due 6/12/98 5,900 5889 2.21
Gillette Co. 5.47% due 6/3/98 (1) 5,800 5,797 2.18
Associates Corp. of North America 5.64% due 6/1/98 5,500 5499 2.07
E.I. du Pont de Nemours and Co. 5.48% due 6/23/98 5,500 5,481 2.06
General Electric Capital Corp. 5.53% due 6/19/98 5,400 5,384 2.02
Minnesota Mining and Manufacturing Co. 5.45% due 6/9/98 5,200 5193 1.95
Sherwin-Williams Co. 5.50% due 6/3/98 (1) 5,000 4,998 1.88
Sara Lee Corp. 5.46% due 6/8/98 5,000 4994 1.88
Commercial Credit Co. 5.51% due 6/22/98 5,000 4983 1.87
Ameritech Corp. 5.46% due 7/6/98 5,000 4,973 1.87
IBM Credit Corp. 5.50% due 7/8/98 5,000 4,971 1.87
Amoco, Inc. 5.48% due 7/9/98 5,000 4,970 1.87
Motorola, Inc. 5.46% due 7/10/98 5,000 4,970 1.87
Xerox Corp. 5.47% due 6/26/98 4,400 4,383 1.65
Pfizer Inc 5.48% due 6/17/98 (1) 4,200 4,189 1.57
BellSouth Telecommunications, Inc. 5.46% due 6/5/98 4,100 4097 1.54
Hershey Foods Corp. 5.46% due 6/16/98 4,000 3990 1.50
A.I. Credit Corp. 5.49% due 6/10/98 3,700 3694 1.39
Kimberly-Clark Corp. 5.49% due 7/17/98 (1) 1,800 1,787 .67
Federal Agency Obligations - 25.43%
Freddie Mac 5.40%-5.43% due 6/4-7/14/98 33,700 33542 12.61
Fannie Mae 5.40%-5.41% due 6/10-7/2/98 16,900 16854 6.33
Federal Home Loan Banks 5.39% due 6/24/98 12,300 12256 4.61
Federal Farm Credit Bank 5.40% due 6/2/98 5000 4,999 1.88
-------------------
TOTAL INVESTMENT SECURITIES (cost: $264,548,000) 264548 99.44
Excess of cash and receivables over payables 1485 .56
-------------------
NET ASSETS $266,033 100.00%
===================
(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
<S> <C> <C> <C> <C>
Global Small
Statement of Changes in Net Assets Capitalization
(dollars in thousands) Global Growth Fund Fund
----------- ----------- -----------
Six months Period ended Period
ended November 30, ended
May 31,1998(1) 1997 (2) May 31,1998(1)(3)
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income $1,212 $549 $63
Net realized gain (loss) on investments (845) (99) 35
Net unrealized appreciation (depreciation)
on investments 25,044 (1,529) (1,741)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 25,411 (1,079) (1,643)
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (373) (176) 0
Class 2 (176) (62) 0
----------- ----------- -----------
Total dividends from net investment income (549) (238) 0
Distributions from net realized gain on
investments (277) - 0
----------- ----------- -----------
Total dividends and distributions (826) (238) 0
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 24,998 81,956 23,574
Proceeds from shares issued on reinvestment
of dividends and distributions 543 176 0
Cost of shares repurchased (6,418) (6,631) 0
----------- ----------- -----------
Net increase (decrease) from Class 1 transactions 19,123 75,501 23,574
----------- ----------- -----------
Class 2:
Proceeds from shares sold 33,956 47,516 2,811
Proceeds from shares issued on reinvestment
of dividends and distributions 283 62 -
Cost of shares repurchased (156) - -
----------- ----------- -----------
Net increase from Class 2 transactions 34,083 47,578 2,811
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 53,206 123,079 26,385
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 77,791 121,762 24,742
NET ASSETS:
Beginning of period 126,762 5,000 10,000
----------- ----------- -----------
End of period $204,553 $126,762 $34,742
============ ============ ============
Undistributed net investment income $974 $311 $63
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 2,102,352 7,649,183 2,384,672
Shares issued on reinvestment of dividends
and distributions 49,171 15,620
Shares repurchased (568,646) (605,047) (17)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 1,582,877 7,059,756 2,384,655
============ ============ ============
Class 2:
Shares sold 2,898,214 4,376,072 288,386
Shares issued on reinvestment of dividends
and distributions 25,846 5,510 -
Shares repurchased (14,400) (32) -
----------- ----------- -----------
Net increase in shares outstanding 2,909,660 4,381,550 288,386
============ ============ ============
Growth Fund International Fund
----------- -----------
Six months Year ended Six months Year ended
ended November 30, ended November 30,
May 31,1998(1) 1997 May 31,1998(1) 1997
- ---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $8,540 $24,821 $22,876 $41,594
Net realized gain (loss) on investments 286,519 561,323 5,354 277,748
Net unrealized appreciation (depreciation)
on investments 354,792 342,407 459,492 (92,076)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 649,851 928,551 487,722 227,266
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (9,982) (24,809) (18,954) (43,541)
Class 2 (109) (50) (324) (166)
----------- ----------- ----------- -----------
Total dividends from net investment income (10,091) (24,859) (19,278) (43,707)
Distributions from net realized gain on
investments (580,856) (268,039) (272,318) (94,763)
----------- ----------- ----------- -----------
Total dividends and distributions (590,947) (292,898) (291,596) (138,470)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 44,249 238,801 24,908 208,181
Proceeds from shares issued on reinvestment
of dividends and distributions 579,860 292,848 285,740 138,304
Cost of shares repurchased (259,883) (354,956) (249,281) (196,240)
----------- ----------- ----------- -----------
Net increase (decrease) from Class 1 transactions 364,226 176,693 61,367 150,245
----------- ----------- ----------- -----------
Class 2:
Proceeds from shares sold 109,688 72,649 37,271 51,308
Proceeds from shares issued on reinvestment
of dividends and distributions 11,087 50 5,856 166
Cost of shares repurchased - (11) (354) (24)
----------- ----------- ----------- -----------
Net increase from Class 2 transactions 120,775 72,688 42,773 51,450
Net increase (decrease) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 485,001 249,381 104,140 201,695
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 543,905 885,034 300,266 290,491
NET ASSETS:
Beginning of period 4,745,383 3,860,349 2,660,119 2,369,628
----------- ----------- ----------- -----------
End of period $5,289,288 $4,745,383 $2,960,385 $2,660,119
============ ============ ============ ============
Undistributed net investment income $3,061 $4,612 $13,240 $9,642
============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 910,948 5,361,345 1,531,915 12,876,841
Shares issued on reinvestment of dividends
and distributions 13,173,922 7,259,293 19,813,538 8,982,981
Shares repurchased (5,208,261) (8,120,252) (15,950,808)(11,853,859)
----------- ----------- ----------- -----------
Net increase (decrease) in shares outstanding 8,876,609 4,500,386 5,394,645 10,005,963
============ ============ ============ ============
Class 2:
Shares sold 2,233,743 1,488,730 2,304,086 2,969,078
Shares issued on reinvestment of dividends
and distributions 252,016 1,040 406,410 9,366
Shares repurchased - (216) (23,827) (1,469)
----------- ----------- ----------- -----------
Net increase in shares outstanding 2,485,759 1,489,554 2,686,669 2,976,975
============ ============ ============ ============
Asset
Growth- Allocation
Income Fund Fund
----------- -----------
Six months Year ended Six months Year ended
ended November 30, ended November 30,
May 31,1998(1) 1997 May 31,1998(1) 1997
- ---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $61,838 $117,807 $28,185 $46,387
Net realized gain (loss) on investments 441,814 631,933 54,131 78,404
Net unrealized appreciation (depreciation)
on investments 302,441 464,898 90,846 86,689
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 806,093 1,214,638 173,162 211,480
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (57,372) (112,850) (24,137) (43,924)
Class 2 (1,818) (568) (1,020) (267)
----------- ----------- ----------- -----------
Total dividends from net investment income (59,190) (113,418) (25,157) (44,191)
Distributions from net realized gain on
investments (633,063) (373,625) (78,277) (72,976)
----------- ----------- ----------- -----------
Total dividends and distributions (692,253) (487,043) (103,434) (117,167)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 52,532 258,887 35,752 94,533
Proceeds from shares issued on reinvestment
of dividends and distributions 672,280 486,475 99,746 116,900
Cost of shares repurchased (265,559) (287,990) (43,781) (52,765)
----------- ----------- ----------- -----------
Net increase (decrease) from Class 1 transactions 459,253 457,372 91,717 158,668
----------- ----------- ----------- -----------
Class 2:
Proceeds from shares sold 200,540 152,837 60,481 40,846
Proceeds from shares issued on reinvestment
of dividends and distributions 19,973 568 3,688 267
Cost of shares repurchased - (2) - (203)
----------- ----------- ----------- -----------
Net increase from Class 2 transactions 220,513 153,403 64,169 40,910
Net increase (decrease) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 679,766 610,775 155,886 199,578
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 793,606 1,338,370 225,614 293,891
NET ASSETS:
Beginning of period 6,587,010 5,248,640 1,434,982 1,141,091
----------- ----------- ----------- -----------
End of period $7,380,616 $6,587,010 $1,660,596 $1,434,982
============ ============ ============ ============
Undistributed net investment income $32,301 $29,653 $15,198 $12,170
============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,356,310 7,261,018 2,248,901 6,313,389
Shares issued on reinvestment of dividends
and distributions 18,657,039 14,498,052 6,509,393 8,150,386
Shares repurchased (6,652,376) (7,793,511) (2,667,756) (3,428,456)
----------- ----------- ----------- -----------
Net increase (decrease) in shares outstanding 13,360,973 13,965,559 6,090,538 11,035,319
============ ============ ============ ============
Class 2:
Shares sold 5,085,166 3,921,601 3,723,600 2,569,382
Shares issued on reinvestment of dividends
and distributions 553,600 14,358 239,577 16,640
Shares repurchased - (49) - (12,802)
----------- ----------- ----------- -----------
Net increase in shares outstanding 5,638,766 3,935,910 3,963,177 2,573,220
============ ============ ============ ============
High-
Yield
Bond Fund Bond Fund
----------- -----------
Six months Year ended Six months Year ended
ended November 30, ended November 30,
May 31,1998(1) 1997 May 31,1998(1) 1997
- ---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $5,629 $7,007 $33,973 $64,918
Net realized gain (loss) on investments 1,535 1,649 12,459 14,913
Net unrealized appreciation (depreciation)
on investments (548) 1,007 (2,595) 5,122
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 6,616 9,663 43,837 84,953
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (4,196) (5,948) (33,686) (61,513)
Class 2 (521) (126) (1,310) (387)
----------- ----------- ----------- -----------
Total dividends from net investment income (4,717) (6,074) (34,996) (61,900)
Distributions from net realized gain on
investments (1,717) - (8,320) -
----------- ----------- ----------- -----------
Total dividends and distributions (6,434) (6,074) (43,316) (61,900)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 20,817 52,881 28,473 74,311
Proceeds from shares issued on reinvestment
of dividends and distributions 5,754 5,948 41,753 61,513
Cost of shares repurchased (7,469) (7,585) (33,778) (55,586)
----------- ----------- ----------- -----------
Net increase (decrease) from Class 1 transactions 19,102 51,244 36,448 80,238
----------- ----------- ----------- -----------
Class 2:
Proceeds from shares sold 15,930 11,571 26,580 20,198
Proceeds from shares issued on reinvestment
of dividends and distributions 680 126 1,563 387
Cost of shares repurchased (246) (29) (130) (3)
----------- ----------- ----------- -----------
Net increase from Class 2 transactions 16,364 11,668 28,013 20,582
Net increase (decrease) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 35,466 62,912 64,461 100,820
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 35,648 66,501 64,982 123,873
NET ASSETS:
Beginning of period 143,926 77,425 786,058 662,185
----------- ----------- ----------- -----------
End of period $179,574 $143,926 $851,040 $786,058
============ ============ ============ ============
Undistributed net investment income $2,993 $2,081 $16,366 $17,389
============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,962,197 5,092,091 1,903,449 5,078,465
Shares issued on reinvestment of dividends
and distributions 548,830 579,221 2,826,387 4,250,842
Shares repurchased (703,786) (732,975) (2,250,371) (3,792,325)
----------- ----------- ----------- -----------
Net increase (decrease) in shares outstanding 1,807,241 4,938,337 2,479,465 5,536,982
============ ============ ============ ============
Class 2:
Shares sold 1,501,511 1,098,637 1,775,000 1,355,310
Shares issued on reinvestment of dividends
and distributions 64,758 12,011 105,562 26,144
Shares repurchased (23,245) (2,771) (8,680) (225)
----------- ----------- ----------- -----------
Net increase in shares outstanding 1,543,024 1,107,877 1,871,882 1,381,229
============ ============ ============ ============
U.S.
Government/
AAA-Rated Cash
Securities Management
Fund Fund
----------- -----------
Six months Year ended Six months Year ended
ended November 30, ended November 30,
May 31,1998(1) 1997 May 31,1998(1) 1997
- ---------------------------------- ----------- ----------- ----------- -----------
OPERATIONS:
Net investment income $15,104 $32,546 $5,861 $12,382
Net realized gain (loss) on investments 2,627 (9,383) (3) -
Net unrealized appreciation (depreciation)
on investments (10) 6,202 - -
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 17,721 29,365 5,858 12,382
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (14,672) (34,740) (5,783) (11,948)
Class 2 (333) (123) (423) (182)
----------- ----------- ----------- -----------
Total dividends from net investment income (15,005) (34,863) (6,206) (12,130)
Distributions from net realized gain on
investments - - - -
----------- ----------- ----------- -----------
Total dividends and distributions (15,005) (34,863) (6,206) (12,130)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 16,701 23,001 109,774 252,946
Proceeds from shares issued on reinvestment
of dividends and distributions 14,672 34,740 5,783 11,948
Cost of shares repurchased (37,662) (93,774) (97,426) (279,424)
----------- ----------- ----------- -----------
Net increase (decrease) from Class 1 transactions (6,289) (36,033) 18,131 (14,530)
----------- ----------- ----------- -----------
Class 2:
Proceeds from shares sold 9,012 8,344 17,991 19,573
Proceeds from shares issued on reinvestment
of dividends and distributions 333 123 423 182
Cost of shares repurchased (1,374) (1,538) (10,039) (5,950)
----------- ----------- ----------- -----------
Net increase from Class 2 transactions 7,971 6,929 8,375 13,805
Net increase (decrease) in net ----------- ----------- ----------- -----------
assets resulting from capital share
transactions 1,682 (29,104) 26,506 (725)
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,398 (34,602) 26,158 (473)
NET ASSETS:
Beginning of period 477,649 512,251 239,875 240,348
----------- ----------- ----------- -----------
End of period $482,047 $477,649 $266,033 $239,875
============ ============ ============ ============
Undistributed net investment income $7,560 $7,461 $2,996 $3,341
============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,488,389 2,087,594 9,914,967 22,809,829
Shares issued on reinvestment of dividends
and distributions 1,322,425 3,195,318 525,260 1,083,759
Shares repurchased (3,364,647) (8,543,011) (8,789,842)(25,187,883)
----------- ----------- ----------- -----------
Net increase (decrease) in shares outstanding (553,833) (3,260,099) 1,650,385 (1,294,295)
============ ============ ============ ============
Class 2:
Shares sold 803,645 756,866 1,626,045 1,763,820
Shares issued on reinvestment of dividends
and distributions 29,992 11,218 38,401 16,540
Shares repurchased (122,566) (139,099) (906,695) (536,654)
----------- ----------- ----------- -----------
Net increase in shares outstanding 711,071 628,985 757,751 1,243,706
============ ============ ============ ============
(1) Unaudited
(2) For the period April 30, 1997, commencement
of operations, through November 30, 1997.
(3) For the period April 30, 1998, commencement
of operations, through May 31, 1998.
(4) Represents initial capitalization from sale
of 500,000 Class 1 shares of beneficial interest.
(5) Represents initial capitalization from sale
of 1,000,000 Class 1 shares of beneficial interest.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Operations
for the six months ended May 31, 1998
(unaudited)
(dollars in thousands)
<S> <C> <C> <C> <C>
Global
Global Small Inter-
Growth Capitalization Growth national
Fund Fund (1) Fund Fund
---------- ---------- -------------------
INVESTMENT INCOME:
Income:
Dividends $1,292 $45 $9,249 $26,546
Interest 650 36 10,101 5,710
---------- ---------- -------------------
1,942 81 19,350 32,256
---------- ---------- -------------------
Expenses:
Management services fee 569 15 10,181 7,969
Distribution fees - Class 2 86 - 171 89
Reports to shareholders 3 - 81 44
Registration statement and
prospectus 37 2 109 79
Postage, stationery and
supplies 1 - 31 17
Trustees' fees 1 - 23 13
Auditing and legal fees 1 - 52 29
Custodian fee 27 1 64 1,075
Taxes other than federal
income tax 3 - 63 35
Other expenses 2 - 35 30
---------- ---------- -------------------
730 18 10,810 9,380
---------- ---------- -------------------
Net investment income 1,212 63 8,540 22,876
---------- ---------- -------------------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) (845) 35 286,519 5,354
---------- ---------- -------------------
Net change in unrealized appreciation
(depreciation) on investments 25,044 (1,741) 354,792 460,856
Net change in unrealized
depreciation on open forward currency
contracts - - - (1,364)
---------- ---------- -------------------
Net unrealized appreciation
(depreciation) 25,044 (1,741) 354,792 459,492
---------- ---------- -------------------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 24,199 (1,706) 641,311 464,846
---------- ---------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $25,411 ($1,643)$649,851 $487,722
========= ========= ====================
High-
Growth- Asset Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
--------- ---------- -------------------
INVESTMENT INCOME:
Income:
Dividends $50,986 $10,171 $275 $1,162
Interest 24,283 21,691 5,835 34,991
---------- ---------- -------------------
75,269 31,862 6,110 36,153
---------- ---------- -------------------
Expenses:
Management services fee 12,385 3,402 420 2,033
Distribution fees - Class 2 342 92 24 43
Reports to shareholders 113 24 2 13
Registration statement and
prospectus 229 69 20 35
Postage, stationery and
supplies 43 9 1 5
Trustees' fees 31 7 1 4
Auditing and legal fees 72 16 2 9
Custodian fee 82 27 5 20
Taxes other than federal
income tax 86 19 4 11
Other expenses 48 12 2 7
---------- ---------- -------------------
13,431 3,677 481 2,180
---------- ---------- -------------------
Net investment income 61,838 28,185 5,629 33,973
---------- ---------- -------------------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 441,814 54,131 1,535 12,459
---------- ---------- -------------------
Net change in unrealized appreciation
(depreciation) on investments 302,441 90,846 (537) (2,373)
Net change in unrealized
depreciation on open forward currency
contracts - - (11) (222)
---------- ----------- -------------------
Net unrealized appreciation
(depreciation) 302,441 90,846 (548) (2,595)
---------- ----------- -------------------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 744,255 144,977 987 9,864
---------- ---------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $806,093 $173,162 $6,616 $43,837
========= ========= ========= =========
U.S.
Government/ Cash
AAA-Rated Manage-
Securities ment
Fund Fund
------------- ----------
INVESTMENT INCOME:
Income:
Dividends - -
Interest $16,379 $6,425
---------- ----------
16,379 6,425
---------- ----------
Expenses:
Management services fee 1,226 521
Distribution fees - Class 2 14 22
Reports to shareholders 8 3
Registration statement and
prospectus - 1
Postage, stationery and
supplies 3 1
Trustees' fees 2 1
Auditing and legal fees 5 3
Custodian fee 10 4
Taxes other than federal
income tax 6 4
Other expenses 1 4
---------- ----------
1,275 564
---------- ----------
Net investment income 15,104 5,861
---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 2,627 (3)
---------- ----------
Net change in unrealized appreciation
(depreciation) on investments (10) -
Net change in unrealized
depreciation on open forward currency
contracts - -
------------- ----------
Net unrealized appreciation
(depreciation) (10) -
------------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 2,617 (3)
---------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $17,721 $5,858
============= =========
(1) For the period April 30, 1998, commencement of
operations, through May 31, 1998.
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Changes in Net Assets
(dollars in thousands)
Global Global Small
Growth Capitalization
Fund Fund Growth Fund
----------- ----------- ----------- ----------- -----------
Six months Period Six months
ended Period ended ended ended Year ended
May 31, November 30, May 31, May 31, November 30,
1998(1) 1997 (2) 1998(1)(3) 1998(1) 1997
- ---------------------------------- ---------- ---------- ---------- ---------- ----------
OPERATIONS:
Net investment income $1,212 $549 $63 $8,540 $24,821
Net realized gain (loss) on investments (845) (99) 35 286,519 561,323
Net unrealized appreciation (depreciation)
on investments 25,044 (1,529) (1,741) 354,792 342,407
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations 25,411 (1,079) (1,643) 649,851 928,551
---------- ---------- ---------- ---------- ----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (373) (176) - (9,982) (24,809)
Class 2 (176) (62) - (109) (50)
---------- ---------- ---------- ---------- ----------
Total dividends from net investment income (549) (238) - (10,091) (24,859)
Distributions from net realized gain on
investments (277) - - (580,856) (268,039)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (826) (238) - (590,947) (292,898)
---------- ---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 24,998 81,956 23,574 44,249 238,801
Proceeds from shares issued on reinvestment
of dividends and distributions 543 176 - 579,860 292,848
Cost of shares repurchased (6,418) (6,631) - (259,883) (354,956)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) from Class 1 transactions 19,123 75,501 23,574 364,226 176,693
---------- ---------- ---------- ---------- ----------
Class 2:
Proceeds from shares sold 33,956 47,516 2,811 109,688 72,649
Proceeds from shares issued on reinvestment
of dividends and distributions 283 62 - 11,087 50
Cost of shares repurchased (156) - - - (11)
---------- ---------- ---------- ---------- ----------
Net increase from Class 2 transactions 34,083 47,578 2,811 120,775 72,688
Net increase (decrease) in net ---------- ---------- ---------- ---------- ----------
assets resulting from capital share
transactions 53,206 123,079 26,385 485,001 249,381
---------- ---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 77,791 121,762 24,742 543,905 885,034
NET ASSETS:
Beginning of period 126,762 5,000/4/ 10,000/5/ 4,745,383 3,860,349
---------- ---------- ---------- ---------- ----------
End of period $204,553 $126,762 $34,742 $5,289,288 $4,745,383
========== ========== ========== ========== ==========
Undistributed net investment income $974 $311 $63 $3,061 $4,612
========== ========== ========== ========== ==========
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 2,102,352 7,649,183 2,384,672 910,948 5,361,345
Shares issued on reinvestment of dividends
and distributions 49,171 15,620 - 13,173,922 7,259,293
Shares repurchased (568,646) (605,047) (17) (5,208,261) (8,120,252)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in shares outstanding 1,582,877 7,059,756 2,384,655 8,876,609 4,500,386
========== ========== ========== ========== ==========
Class 2:
Shares sold 2,898,214 4,376,072 288,386 2,233,743 1,488,730
Shares issued on reinvestment of dividends
and distributions 25,846 5,510 - 252,016 1,040
Shares repurchased (14,400) (32) - - (216)
---------- ---------- ---------- ---------- ----------
Net increase in shares outstanding 2,909,660 4,381,550 288,386 2,485,759 1,489,554
========== ========== ========== ========== ==========
Growth-
International Income
Fund Fund
----------- ----------- ----------- -----------
Six months Six months
ended Year ended ended Year ended
May 31, November 30, May 31, November 30,
1998(1) 1997 1998(1) 1997
- ---------------------------------- ---------- ---------- ---------- ----------
OPERATIONS:
Net investment income $22,876 $41,594 $61,838 $117,807
Net realized gain (loss) on investments 5,354 277,748 441,814 631,933
Net unrealized appreciation (depreciation)
on investments 459,492 (92,076) 302,441 464,898
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations 487,722 227,266 806,093 1,214,638
---------- ---------- ---------- ----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (18,954) (43,541) (57,372) (112,850)
Class 2 (324) (166) (1,818) (568)
---------- ---------- ---------- ----------
Total dividends from net investment income (19,278) (43,707) (59,190) (113,418)
Distributions from net realized gain on
investments (272,318) (94,763) (633,063) (373,625)
---------- ---------- ---------- ----------
Total dividends and distributions (291,596) (138,470) (692,253) (487,043)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 24,908 208,181 52,532 258,887
Proceeds from shares issued on reinvestment
of dividends and distributions 285,740 138,304 672,280 486,475
Cost of shares repurchased (249,281) (196,240) (265,559) (287,990)
---------- ---------- ---------- ----------
Net increase (decrease) from Class 1 transactions 61,367 150,245 459,253 457,372
---------- ---------- ---------- ----------
Class 2:
Proceeds from shares sold 37,271 51,308 200,540 152,837
Proceeds from shares issued on reinvestment
of dividends and distributions 5,856 166 19,973 568
Cost of shares repurchased (354) (24) - (2)
---------- ---------- ---------- ----------
Net increase from Class 2 transactions 42,773 51,450 220,513 153,403
Net increase (decrease) in net ---------- ---------- ---------- ----------
assets resulting from capital share
transactions 104,140 201,695 679,766 610,775
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 300,266 290,491 793,606 1,338,370
NET ASSETS:
Beginning of period 2,660,119 2,369,628 6,587,010 5,248,640
---------- ---------- ---------- ----------
End of period $2,960,385 $2,660,119 $7,380,616 $6,587,010
========== ========== ========== ==========
Undistributed net investment income $13,240 $9,642 $32,301 $29,653
========== ========== ========== ==========
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,531,915 12,876,841 1,356,310 7,261,018
Shares issued on reinvestment of dividends
and distributions 19,813,538 8,982,981 18,657,039 14,498,052
Shares repurchased (15,950,808) (11,853,859) (6,652,376) (7,793,511)
---------- ---------- ---------- ----------
Net increase (decrease) in shares outstanding 5,394,645 10,005,963 13,360,973 13,965,559
========== ========== ========== ==========
Class 2:
Shares sold 2,304,086 2,969,078 5,085,166 3,921,601
Shares issued on reinvestment of dividends
and distributions 406,410 9,366 553,600 14,358
Shares repurchased (23,827) (1,469) - (49)
---------- ---------- ---------- ----------
Net increase in shares outstanding 2,686,669 2,976,975 5,638,766 3,935,910
========== ========== ========== ==========
Asset
Allocation
Fund Bond Fund
----------- ----------- ----------- -----------
Six months Six months
ended Year ended ended Year ended
May 31, November 30, May 31, November 30,
1998(1) 1997 1998(1) 1997
- ---------------------------------- ---------- ---------- ---------- ----------
OPERATIONS:
Net investment income $28,185 $46,387 $5,629 $7,007
Net realized gain (loss) on investments 54,131 78,404 1,535 1,649
Net unrealized appreciation (depreciation)
on investments 90,846 86,689 (548) 1,007
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations 173,162 211,480 6,616 9,663
---------- ---------- ---------- ----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (24,137) (43,924) (4,196) (5,948)
Class 2 (1,020) (267) (521) (126)
---------- ---------- ---------- ----------
Total dividends from net investment income (25,157) (44,191) (4,717) (6,074)
Distributions from net realized gain on
investments (78,277) (72,976) (1,717) -
---------- ---------- ---------- ----------
Total dividends and distributions (103,434) (117,167) (6,434) (6,074)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 35,752 94,533 20,817 52,881
Proceeds from shares issued on reinvestment
of dividends and distributions 99,746 116,900 5,754 5,948
Cost of shares repurchased (43,781) (52,765) (7,469) (7,585)
---------- ---------- ---------- ----------
Net increase (decrease) from Class 1 transactions 91,717 158,668 19,102 51,244
---------- ---------- ---------- ----------
Class 2:
Proceeds from shares sold 60,481 40,846 15,930 11,571
Proceeds from shares issued on reinvestment
of dividends and distributions 3,688 267 680 126
Cost of shares repurchased - (203) (246) (29)
---------- ---------- ---------- ----------
Net increase from Class 2 transactions 64,169 40,910 16,364 11,668
Net increase (decrease) in net ---------- ---------- ---------- ----------
assets resulting from capital share
transactions 155,886 199,578 35,466 62,912
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 225,614 293,891 35,648 66,501
NET ASSETS:
Beginning of period 1,434,982 1,141,091 143,926 77,425
---------- ---------- ---------- ----------
End of period $1,660,596 $1,434,982 $179,574 $143,926
========== ========== ========== ==========
Undistributed net investment income $15,198 $12,170 $2,993 $2,081
========== ========== ========== ==========
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 2,248,901 6,313,389 1,962,197 5,092,091
Shares issued on reinvestment of dividends
and distributions 6,509,393 8,150,386 548,830 579,221
Shares repurchased (2,667,756) (3,428,456) (703,786) (732,975)
---------- ---------- ---------- ----------
Net increase (decrease) in shares outstanding 6,090,538 11,035,319 1,807,241 4,938,337
========== ========== ========== ==========
Class 2:
Shares sold 3,723,600 2,569,382 1,501,511 1,098,637
Shares issued on reinvestment of dividends
and distributions 239,577 16,640 64,758 12,011
Shares repurchased - (12,802) (23,245) (2,771)
---------- ---------- ---------- ----------
Net increase in shares outstanding 3,963,177 2,573,220 1,543,024 1,107,877
========== ========== ========== ==========
High-
Yield U.S. Government/
Bond AAA-Rated
Fund Securities Fund
----------- ----------- ----------- -----------
Six months Six months
ended Year ended ended Year ended
May 31, November 30, May 31, November 30,
1998(1) 1997 1998(1) 1997
- ---------------------------------- ---------- ---------- ---------- ----------
OPERATIONS:
Net investment income $33,973 $64,918 $15,104 $32,546
Net realized gain (loss) on investments 12,459 14,913 2,627 (9,383)
Net unrealized appreciation (depreciation)
on investments (2,595) 5,122 (10) 6,202
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations 43,837 84,953 17,721 29,365
---------- ---------- ---------- ----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (33,686) (61,513) (14,672) (34,740)
Class 2 (1,310) (387) (333) (123)
---------- ---------- ---------- ----------
Total dividends from net investment income (34,996) (61,900) (15,005) (34,863)
Distributions from net realized gain on
investments (8,320) - - -
---------- ---------- ---------- ----------
Total dividends and distributions (43,316) (61,900) (15,005) (34,863)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 28,473 74,311 16,701 23,001
Proceeds from shares issued on reinvestment
of dividends and distributions 41,753 61,513 14,672 34,740
Cost of shares repurchased (33,778) (55,586) (37,662) (93,774)
---------- ---------- ---------- ----------
Net increase (decrease) from Class 1 transactions 36,448 80,238 (6,289) (36,033)
---------- ---------- ---------- ----------
Class 2:
Proceeds from shares sold 26,580 20,198 9,012 8,344
Proceeds from shares issued on reinvestment
of dividends and distributions 1,563 387 333 123
Cost of shares repurchased (130) (3) (1,374) (1,538)
---------- ---------- ---------- ----------
Net increase from Class 2 transactions 28,013 20,582 7,971 6,929
Net increase (decrease) in net ---------- ---------- ---------- ----------
assets resulting from capital share
transactions 64,461 100,820 1,682 (29,104)
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 64,982 123,873 4,398 (34,602)
NET ASSETS:
Beginning of period 786,058 662,185 477,649 512,251
---------- ---------- ---------- ----------
End of period $851,040 $786,058 $482,047 $477,649
========== ========== ========== ==========
Undistributed net investment income $16,366 $17,389 $7,560 $7,461
========== ========== ========== ==========
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,903,449 5,078,465 1,488,389 2,087,594
Shares issued on reinvestment of dividends
and distributions 2,826,387 4,250,842 1,322,425 3,195,318
Shares repurchased (2,250,371) (3,792,325) (3,364,647) (8,543,011)
---------- ---------- ---------- ----------
Net increase (decrease) in shares outstanding 2,479,465 5,536,982 (553,833) (3,260,099)
========== ========== ========== ==========
Class 2:
Shares sold 1,775,000 1,355,310 803,645 756,866
Shares issued on reinvestment of dividends
and distributions 105,562 26,144 29,992 11,218
Shares repurchased (8,680) (225) (122,566) (139,099)
---------- ---------- ---------- ----------
Net increase in shares outstanding 1,871,882 1,381,229 711,071 628,985
========== ========== ========== ==========
Cash
Management
Fund
----------- -----------
Six months
ended Year ended
May 31, November 30,
1998(1) 1997
- ---------------------------------- ---------- ----------
OPERATIONS:
Net investment income $5,861 $12,382
Net realized gain (loss) on investments (3) -
Net unrealized appreciation (depreciation)
on investments - -
---------- ----------
Net increase (decrease) in net assets
resulting from operations 5,858 12,382
---------- ----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (5,783) (11,948)
Class 2 (423) (182)
---------- ----------
Total dividends from net investment income (6,206) (12,130)
Distributions from net realized gain on
investments - -
---------- ----------
Total dividends and distributions (6,206) (12,130)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 109,774 252,946
Proceeds from shares issued on reinvestment
of dividends and distributions 5,783 11,948
Cost of shares repurchased (97,426) (279,424)
---------- ----------
Net increase (decrease) from Class 1 transactions 18,131 (14,530)
---------- ----------
Class 2:
Proceeds from shares sold 17,991 19,573
Proceeds from shares issued on reinvestment
of dividends and distributions 423 182
Cost of shares repurchased (10,039) (5,950)
---------- ----------
Net increase from Class 2 transactions 8,375 13,805
Net increase (decrease) in net ---------- ----------
assets resulting from capital share
transactions 26,506 (725)
---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 26,158 (473)
NET ASSETS:
Beginning of period 239,875 240,348
---------- ----------
End of period $266,033 $239,875
========== ==========
Undistributed net investment income $2,996 $3,341
========== ==========
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 9,914,967 22,809,829
Shares issued on reinvestment of dividends
and distributions 525,260 1,083,759
Shares repurchased (8,789,842)(25,187,883)
---------- ----------
Net increase (decrease) in shares outstanding 1,650,385 (1,294,295)
========== ==========
Class 2:
Shares sold 1,626,045 1,763,820
Shares issued on reinvestment of
dividends and distributions 38,401 16,540
Shares repurchased (906,695) (536,654)
---------- ----------
Net increase in shares outstanding 757,751 1,243,706
========== ==========
(1) Unaudited
(2) For the period April 30, 1997,
commencement of operations,
through November 30, 1997.
(3) For the period April 30, 1998,
commencement of operations,
through May 31, 1998.
(4) Represents initial capitalization
from sale of 500,000 Class 1
shares of beneficial interest.
(5) Represents initial capitalization
from sale of 1,000,000 Class 1
shares of beneficial interest.
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 ten different funds. The 10th fund, the Global Small
Capitalization Fund, commenced operations on April 30, 1998. The assets of each
fund are segregated, with each fund accounted for separately. The funds'
investment objectives are as follows: Global Growth Fund - growth of capital by
investing primarily in common stocks or securities with common stock
characteristics of issuers domiciled around the world; Global Small
Capitalization Fund - long-term growth of capital by investing primarily in
smaller companies in the U.S. and around the world; 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 United States;
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,
with emphasis on higher yielding, higher risk, lower rated or unrated
securities; 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.
Each fund in the series is authorized to offer multiple classes of shares.
Currently, each fund offers two classes of shares: Class 1 and Class 2. Class
1 shares are not subject to either an initial or contingent deferred sales
charge nor have they adopted a plan of distribution to cover any distribution
expenses. Class 2 shares are subject to certain fees pursuant to a Plan of
Distribution as described below. Both classes of shares have identical voting,
dividend, liquidation and other rights and shall have exclusive rights to vote
on matters affecting only individual classes. Income, expenses, and any
realized capital gains and losses not allocated to a particular class will be
allocated to each class on the basis of the net asset value of that class in
relation to net assets of the fund. Class-specific expenses will be allocated
to that particular class on a specific identification basis.
The following paragraphs summarize the significant accounting policies
consistently followed by the series in the preparation of its financial
statements:
Equity securities, including depositary receipts, are valued at the last
reported sale price on the exchange or market on which such securities are
traded, as of the close of business on the day the securities are being valued
or, lacking any sales, at the last available bid price. In cases where equity
securities are traded on more than one exchange, the securities are valued on
the exchange or market determined by the investment adviser to be the broadest
and most representative market, which may be either a securities exchange or
the over-the-counter market. Fixed-income securities are valued at prices
obtained from a pricing service, 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 quoted bid and asked prices or at prices
for securities of comparable maturity, quality and type. Securities with
original maturities of one year or less having 60 days or less to maturity are
amortized to maturity based on their cost if acquired within 60 days of
maturity or, if already held on the 60th day, based on the value determined on
the 61st day. Forward currency contracts are valued at the mean of their
representative quoted bid and asked prices. Assets or liabilities initially
expressed in terms of foreign currencies are translated into U.S. dollars at
the prevailing market rates at the end of the reporting period. Purchases and
sales of securities and income and expenses are translated into U.S. dollars at
the prevailing market rates on the dates of such transactions. The effects of
changes in foreign currency exchange rates on investment securities are
included with the net realized and unrealized gain or loss on investment
securities. Securities and assets for which representative market quotations
are not readily available are valued at fair value as determined in good faith
by a committee appointed by 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. In the event
the series purchases securities on a delayed delivery or "when-issued" basis,
it will segregate with its custodian liquid assets in an amount sufficient to
meet its payment obligations in these transactions. 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 and premiums on
securities purchased are amortized. Dividends and distributions paid to
shareholders are recorded on the ex-dividend date.
The series may enter into forward currency contracts, which represent
agreements to exchange currencies of different countries at specified future
dates at specified rates. The series enters into these contracts to reduce its
exposure to fluctuations in foreign exchange rates arising from investments
denominated in non-U.S. currencies. The series' 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 series
records realized gains or losses at the time the forward contract is closed or
offset by a matching contract. The face or contract amount in U.S. dollars
reflects the total exposure the series has in that particular contract. Risks
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.
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.
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 month ended May 31, 1998, the U.S. Government/AAA-Rated
Securities Fund utilized a capital loss carryforward of $1,930,000 to offset,
for tax purposes, capital gains realized during the period up to such amount.
The Global Growth Fund and the U.S. Government/AAA-Rated Securities Fund had
available at May 31, 1998 capital loss carryforwards totaling $1,214,000 and
$17,649,000, respectively, which may be used to offset capital gains realized
during subsequent years through November 30, 2006 and 2005, respectively. It is
the intention of these funds not to make distributions from capital gains while
there are capital loss carryforwards.
Additional tax basis disclosures as of and for the six months ended May 31,
1998 are as follows:
(dollars in thousands)
<TABLE>
Global Global Small
Growth Capitalizatio Growth Interna-
Fund Fund Fund tional Fund
<S> <C> <C> <C> <C>
For the six months
ended May 31, 1998
Tax basis net capital
gain (loss) (1,205) 35 (1) $266,271 $5,743
Tax basis net currency
gain (loss) (7) 1 (1) 11 (1,751)
As of May 31, 1998 (book
and tax basis amounts,
excluding forward
currency contracts):
Unrealized
appreciation 33,537 469 1,861,462 901,217
Unrealized
depreciation 10,019 2,210 178,774 162,659
Net unrealized
appreciation
(depreciation) 23,518 (1,741)1,682,688 738,558
Cost of portfolio
securities 184,670 36,142 3,554,266 2,212,674
Growth- Asset High-Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
For the six months
ended May 31, 1998
Tax basis net capital
gain (loss) $441,814 $54,132 $1,536 $11,648
Tax basis net currency
gain (loss) - (1) (21) 149
As of May 31, 1998 (book
and tax basis amounts,
excluding forward
currency contracts):
Unrealized
appreciation 2,141,709 378,437 4,576 40,005
Unrealized
depreciation 136,501 16,100 2,028 15,160
Net unrealized
appreciation
(depreciation) 2,005,208 362,337 2,548 24,845
Cost of portfolio
securities 5,401,786 1,300,637 175,622 806,123
U.S. Government Cash
AAA-Rated Management
Securities Fund Fund
For the six months
ended May 31, 1998
Tax basis net capital
gain (loss) $1,930 ($3)
Tax basis net currency
gain (loss) - -
As of May 31, 1998 (book
and tax basis amounts,
excluding forward
currency contracts):
Unrealized
appreciation 11,252 -
Unrealized
depreciation 1,480 -
Net unrealized
appreciation
(depreciation) 9,772 -
Cost of portfolio
securities 511,834 264,548
</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: Global Growth Fund - 0.69% of average net assets; Global Small
Capitalization Fund - 0.80% of average net assets; Growth Fund - 0.50% of the
first $600 million of average net assets; 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; 0.37% of such assets in excess of
$2.0 billion but not exceeding $3.2 billion; and 0.35% of such assets in excess
of $3.2 billion; International Fund -0.78% of the first $600 million of average
net assets; 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
$2.0 billion; and 0.465% of such assets in excess of $2.0 billion;
Growth-Income Fund - 0.50% of the first $600 million of average net assets;
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;
0.32% of such assets in excess of $2.5 billion but not exceeding $4.0 billion;
and 0.285% of such assets in excess of $4.0 billion; Asset Allocation Fund -
0.50% of the first $600 million of average net assets; 0.42% of such assets in
excess of $600 million but not exceeding $1.2 billion; and 0.36% of such assets
in excess of $1.2 billion; 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.
Pursuant to a Plan of Distribution, each fund is authorized to pay an annual
rate of 0.25% of the average daily net assets of Class 2 shares in connection
with certain distribution services and related activities. During the six
months ended May 31, 1998, Plan expenses for the series aggregated $883,000.
As of May 31, 1998, accrued and unpaid distribution expenses were $206,000.
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 31,1998,
aggregate amounts deferred and earnings thereon were $354,000.
4. The following table presents additional disclosure information as of and for
the six month ended May 31, 1998:
(dollars in thousands)
<TABLE>
Global Global Small
Growth Capitalization Growth Interna-
Fund Fund Fund tional Fund
<S> <C> <C> <C> <C>
As of May 31, 1998:
Accumulated
undistributed
net realized
gain (loss) on
Investments $ (1,221) $35 $266,672 $7,379
Paid-in capital 181,285 36,385 3,336,87 2,200,900
For the year
ended May 31,1998:
Purchases of
investment
securities (1) 47,478 32,008 (2) 1,098,08 441,866
Sales of invest-
ment securities (1) 5,057 178 (2) 976,337 547,267
Book basis net currency
gain (loss) on dividends,
interest, withholding
taxes reclaimable, and
sale of non-U.S. bonds (7) 1 11 (719)
Growth- Asset High-Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
As of May 31, 1998:
Accumulated
undistributed
net realized
gain (loss) on
Investments $440,275 $53,704 $1,478 $11,875
Paid-in capital 4,902,839 1,229,361 172,561 798,031
For the year
ended May 31,1998:
Purchases of
investment
securities (1) 1,399,898 296,402 89,491 364,086
Sales of invest-
ment securities (1) 1,184,685 255,067 44,797 323,355
Book basis net currency
gain (loss) on dividends,
interest, withholding
taxes reclaimable, and
sale of non-U.S. bonds - (1) (91) (48)
U.S. Government Cash
AAA-Rated Management
Securities Fund Fund
As of May 31, 1998:
Accumulated
undistributed
net realized
gain (loss) on
Investments $ (17,778) $ (3)
Paid-in capital 482,493 263,040
For the year
ended May 31,1998:
Purchases of
investment
securities (1) 205,024 -
Sales of invest-
ment securities (1) 209,869 -
Book basis net currency
gain (loss) on dividends,
interest, withholding
taxes reclaimable, and
sale of non-U.S. bonds - -
(1) Excludes short-
term securities
(2) For the period
April 30, 1998,
commencement of operations,
through May 31, 1998.
</TABLE>
5. 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 $1,315,000, of
which $82,000 was paid by these credits rather than in cash.
Dividend and interest income for the Global Growth Fund and the International
Fund is recorded net of non-U.S. taxes paid. For the six months ended May 31,
1998, such non-U.S. taxes were $191,000 and $3,516,000, respectively.
At May 31, 1998, the International Fund, the Bond Fund and the High-Yield Bond
Fund had outstanding forward currency contracts to sell non-U.S. currencies as
follows:
<TABLE>
Non-U.S. Currency Sale Contracts
<S> <C> <C> <C> <C> <C>
U.S.
Contract Valuation
Amount at 11/30/97
--------- ---------
Unrealized
Appreciation
Fund Non-U.S. U.S. Amount (Depreciation)
--------- --------- --------- --------- ---------
Brazilian Real
expiring 10/6/98 International BRL 9,251,000 $ 7,500,000$ 7,643,000 $ (143,000)
Japanese Yen
expiring 7/7/98 International Yen2,400,000,000 18,007,000 17,402,000 605,000
Deutsche Marks
expiring 7/23/98 Bond DM 983,000 549,000 553,000 (4,000)
expiring 6/23-8/26/98 High-Yield Bond 22,082,000 12,338,000 12,413,000 (75,000)
</TABLE>
<TABLE>
PER-SHARE
DATA AND RATIOS
<S> <C> <C> <C> <C> <C> <C>
Net
realized &
Net asset Net unrealized
value, invest- gain (loss)
Period beginning ment on invest-
Ended (1) of period income ments
- --------- --------- --------- ---------
Global Growth Fund (3)
Class 1
1997 $10.00 $.06 $ .59
1998 10.62 .08 1.82
Class 2 (5)
1997 10.00 .03 .60
1998 10.61 .07 1.82
Global Small Capitalization Fund (6)
Class 1
1998 $10.00 $.02 $(.56)
Class 2
1998 10.00 .01 (.55)
Growth Fund
Class 1
1993 $ 28.41 $.25 $ 4.13
1994 32.34 .24 .69
1995 31.94 .33 10.63
1996 41.81 .24 5.17
1997 43.53 .27 9.61
1998 50.12 .08 5.92
Class 2 (5)
1997 40.59 .11 9.51
1998 50.09 - 5.94
International Fund
Class 1
1993 $ 9.89 $.17 $ 2.50
1994 12.40 .25 1.04
1995 13.27 .34 1.02
1996 13.89 .28 1.96
1997 15.53 .25 1.18
1998 16.07 .14 2.62
Class 2 (5)
1997 15.86 .13 .23
1998 16.06 .14 2.60
Growth Income Fund
Class 1
1993 $ 24.17 $.63 $ 2.12
1994 26.01 .68 .14
1995 25.30 .73 7.20
1996 31.47 .71 5.55
1997 35.73 .73 6.78
1998 39.97 .34 4.02
Class 2 (5)
1997 34.10 .37 5.82
1998 39.94 .30 4.01
Asset Allocation Fund
Class 1
1993 $ 11.47 $.51 $ .67
1994 12.01 .51 (.57)
1995 11.25 .50 2.69
1996 13.77 .53 1.89
1997 15.18 .55 1.94
1998 16.16 .29 1.49
Class 2 (5)
1997 14.43 .29 1.69
1998 16.15 .27 1.49
Bond Fund (7)
Class 1
1996 $10.00 $.40 $.16
1997 10.31 .63 .30
1998 10.62 .35 .09
Class 2 (5)
1997 10.11 .35 .46
1998 10.61 .33 .10
High-Yield Bond Fund
Class 1
1993 $ 14.17 $1.09 $ 1.20
1994 15.17 1.27 (2.07)
1995 12.89 1.32 1.10
1996 13.99 1.28 .54
1997 14.51 1.29 .43
1998 14.96 .61 .19
Class 2 (5)
1997 14.28 .69 .61
1998 14.95 .61 .17
U.S. Government/AAA-Rated Securities Fund
Class 1
1993 $ 11.53 $.74 $ .68
1994 12.15 .76 (1.30)
1995 10.80 .82 .71
1996 11.52 .83 (.24)
1997 11.29 .76 (.07)
1998 11.18 .35 .06
Class 2 (5)
1997 10.83 .38 .33
1998 11.17 .34 .06
Cash Management Fund
Class 1
1993 $ 11.04 $.29 -
1994 11.02 .37 $ .02
1995 11.09 .63 (.02)
1996 11.11 .54 .01
1997 11.12 .57 (.01)
1998 11.13 .28 -
Class 2 (5)
1997 11.07 .28 .03
1998 11.12 .29 (.02)
Total
income Distri-
(loss) Dividends butions
from from net from
invest- invest- net Total
Period ment ment realized distri-
Ended (1) operations income gains butions
- --------- --------- --------- --------- ---------
Global Growth Fund (3)
Class 1
1997 $ .65 $(.03) - $(.03)
1998 1.90 (.05) $(.02) (.07)
Class 2 (5)
1997 .63 (.02) - (.02)
1998 1.89 (.03) (.02) (.05)
Global Small Capitalization Fund (6)
Class 1
1998 $(.54) -
Class 2
1998 (.54) -
Growth Fund
Class 1
1993 $ 4.38 $(.24) $ (.21) $ (.45)
1994 .93 (.24) (1.09) (1.33)
1995 10.96 (.29) (.80) (1.09)
1996 5.41 (.29) (3.40) (3.69)
1997 9.88 (.27) (3.02) (3.29)
1998 6.00 (.10) (6.14) (6.24)
Class 2 (5)
1997 9.62 (.12) - (.12)
1998 5.94 (.04) (6.14) (6.18)
International Fund
Class 1
1993 $ 2.67 $(.16) - $(.16)
1994 1.29 (.20) $ (.22) (.42)
1995 1.36 (.33) (.41) (.74)
1996 2.24 (.31) (.29) (.60)
1997 1.43 (.27) (.62) (.89)
1998 2.76 (.12) (1.66) (1.78)
Class 2 (5)
1997 .36 (.16) - (.16)
1998 2.74 (.10) (1.66) (1.76)
Growth Income Fund
Class 1
1993 $ 2.75 $(.63) $ (.28) $ (.91)
1994 .82 (.65) (.88) (1.53)
1995 7.93 (.73) (1.03) (1.76)
1996 6.26 (.74) (1.26) (2.00)
1997 7.51 (.72) (2.55) (3.27)
1998 4.36 (.34) (3.83) (4.17)
Class 2 (5)
1997 6.19 (.35) - (.35)
1998 4.31 (.29) (3.83) (4.12)
Asset Allocation Fund
Class 1
1993 $ 1.18 $(.49) $(.15) $ (.64)
1994 (.06) (.52) (.18) (.70)
1995 3.19 (.50) (.17) (.67)
1996 2.42 (.53) (.48) (1.01)
1997 2.49 (.54) (.97) (1.51)
1998 1.78 (.27) (.87) (1.14)
Class 2 (5)
1997 1.98 (.26) - (.26)
1998 1.76 (.25) (.87) (1.12)
Bond Fund (7)
Class 1
1996 $.56 $(.25) - $(.25)
1997 .93 (.62) - (.62)
1998 .44 (.32) $(.12) (.44)
Class 2 (5)
1997 .81 (.31) - (.31)
1998 .43 (.31) (.12) (.43)
High-Yield Bond Fund
Class 1
1993 $ 2.29 $(1.10) $(.19) $(1.29)
1994 (.80) (1.23) (.25) (1.48)
1995 2.42 (1.32) - (1.32)
1996 1.82 (1.30) - (1.30)
1997 1.72 (1.27) - (1.27)
1998 .80 (.64) (.16) (.80)
Class 2 (5)
1997 1.30 (.63) - (.63)
1998 .78 (.62) (.16) (.78)
U.S. Government/AAA-Rated Securities Fund
Class 1
1993 $ 1.42 $(.75) $(.05) $(.80)
1994 (.54) (.74) (.07) (.81)
1995 1.53 (.81) - (.81)
1996 .59 (.82) - (.82)
1997 .69 (.80) - (.80)
1998 .41 (.35) - (.35)
Class 2 (5)
1997 .71 (.37) - (.37)
1998 .40 (.34) - (.34)
Cash Management Fund
Class 1
1993 $.29 $(.31) - $(.31)
1994 .39 (.32) - (.32)
1995 .61 (.59) - (.59)
1996 .55 (.54) - (.54)
1997 .56 (.55) - (.55)
1998 .28 (.31) - (.31)
Class 2 (5)
1997 .31 (.26) - (.26)
1998 .27 (.30) - (.30)
Net asset Net assets,
value, end of
Period end of Total period (in
Ended (1) period return millions)
- --------- --------- --------- ---------
Global Growth Fund (3)
Class 1
1997 $10.62 6.45 % (4) $ 80
1998 12.45 17.97 (4) 114
Class 2 (5)
1997 10.61 6.28 (4) 46
1998 12.44 17.84 (4) 91
Global Small Capitalization Fund (6)
Class 1
1998 $ 9.46 (5.21) % (4) $32
Class 2
1998 9.46 (5.21) (4) 3
Growth Fund
Class 1
1993 $ 32.34 15.59 % $1,737
1994 31.94 2.92 2,027
1995 41.81 35.35 3,154
1996 43.53 14.32 3,860
1997 50.12 24.57 4,671
1998 49.88 13.64 (4) 5,091
Class 2 (5)
1997 50.09 23.73 (4) 75
1998 49.85 13.51 (4) 198
International Fund
Class 1
1993 $ 12.40 27.20 % $ 840
1994 13.27 10.48 1,405
1995 13.89 10.78 1,703
1996 15.53 16.66 2,370
1997 16.07 9.52 2,612
1998 17.05 19.14 (4) 2,864
Class 2 (5)
1997 16.06 2.20 (4) 48
1998 17.04 19.00 (4) 96
Growth Income Fund
Class 1
1993 $ 26.01 11.63 % $2,436
1994 25.30 3.21 2,740
1995 31.47 33.14 3,953
1996 35.73 21.02 5,249
1997 39.97 22.92 6,430
1998 40.16 12.15 (4) 6,996
Class 2 (5)
1997 39.94 18.18 (4) 157
1998 40.13 12.02 (4) 384
Asset Allocation Fund
Class 1
1993 $ 12.01 10.59 % $ 578
1994 11.25 (.54) 637
1995 13.77 29.45 870
1996 15.18 18.65 1,141
1997 16.16 17.90 1,393
1998 16.80 11.79 (4) 1,551
Class 2 (5)
1997 16.15 13.80 (4) 42
1998 16.79 11.66 (4) 110
Bond Fund (7)
Class 1
1996 $10.31 5.74 % (4) $ 77
1997 10.62 9.36 132
1998 10.62 4.24 (4) 152
Class 2 (5)
1997 10.61 8.09 (4) 12
1998 10.61 4.11 (4) 28
High-Yield Bond Fund
Class 1
1993 $ 15.17 17.09 % $379
1994 12.89 (5.71) 390
1995 13.99 19.81 534
1996 14.51 13.75 662
1997 14.96 12.45 765
1998 14.96 5.49 (4) 802
Class 2 (5)
1997 14.95 9.20 (4) 21
1998 14.95 5.36 (4) 49
U.S. Government/AAA-Rated Securities Fund
Class 1
1993 $ 12.15 12.65 % $505
1994 10.80 (4.58) 463
1995 11.52 14.73 542
1996 11.29 5.49 512
1997 11.18 6.49 471
1998 11.24 3.73 (4) 467
Class 2 (5)
1997 11.17 6.65 (4) 7
1998 11.23 3.60 (4) 15
Cash Management Fund
Class 1
1993 $ 11.02 2.67 % $206
1994 11.09 3.59 221
1995 11.11 5.65 193
1996 11.12 5.09 240
1997 11.13 5.21 226
1998 11.10 2.56 (4) 244
Class 2 (5)
1997 11.12 2.87 (4) 14
1998 11.09 2.44 (4) 22
Ratio
Ratio of of net
expenses income to
Period to average average
Ended (1) net assets net assets
- --------- --------- ---------
Global Growth Fund (3)
Class 1
1997 .44 % (4) .80 % (4)
1998 .39 (4) .78 (4)
Class 2 (5)
1997 .57 (4) .56 (4)
1998 .52 (4) .67 (4)
Global Small Capitalization Fund (6)
Class 1
1998 .07 % (4) .27 % (4)
Class 2
1998 .08 (4) .15 (4)
Growth Fund
Class 1
1993 .50 % .86 %
1994 .49 .78
1995 .47 .92
1996 .44 .61
1997 .42 .59
1998 .21 (4) .17 (4)
Class 2 (5)
1997 .37 (4) .08 (4)
1998 .33 (4) .03 (4)
International Fund
Class 1
1993 .96 % 1.75 %
1994 .80 2.03
1995 .75 2.64
1996 .69 1.99
1997 .67 1.56
1998 .33 (4) .81 (4)
Class 2 (5)
1997 .53 (4) .34 (4)
1998 .45 (4) .75 (4)
Growth Income Fund
Class 1
1993 .49 % 2.66 %
1994 .47 2.72
1995 .44 2.70
1996 .41 2.26
1997 .38 2.01
1998 .18 (4) .87 (4)
Class 2 (5)
1997 .35 (4) .93 (4)
1998 .31 (4) .75 (4)
Asset Allocation Fund
Class 1
1993 .55 % 4.66 %
1994 .53 4.55
1995 .52 4.11
1996 .49 3.88
1997 .47 3.63
1998 .23 (4) 1.81 (4)
Class 2 (5)
1997 .40 (4) 1.81 (4)
1998 .35 (4) 1.69 (4)
Bond Fund (7)
Class 1
1996 .52 % (4) 6.18 % (4)
1997 .55 6.63
1998 .28 (4) 3.48 (4)
Class 2 (5)
1997 .44 (4) 3.50 (4)
1998 .40 (4) 3.34 (4)
High-Yield Bond Fund
Class 1
1993 .56 % 8.18 %
1994 .54 9.37
1995 .54 10.12
1996 .53 9.27
1997 .51 8.92
1998 .26 (4) 4.10 (4)
Class 2 (5)
1997 .43 (4) 4.92 (4)
1998 .38 (4) 3.95 (4)
U.S. Government/AAA-Rated Securities Fund
Class 1
1993 .55 % 6.42 %
1994 .54 6.69
1995 .54 7.37
1996 .53 7.33
1997 .52 6.73
1998 .26 (4) 3.12 (4)
Class 2 (5)
1997 .44 (4) 3.45 (4)
1998 .38 (4) 2.96 (4)
Cash Management Fund
Class 1
1993 .51 % 2.57 %
1994 .49 3.60
1995 .49 5.37
1996 .47 4.94
1997 .47 4.99
1998 .23 (4) 2.49 (4)
Class 2 (5)
1997 .41 (4) 2.80 (4)
1998 .35 (4) 2.38 (4)
Average
commissions Portfolio
Period paid per turnover
Ended (1) share (2) rate
- --------- --------- ---------
Global Growth Fund (3)
Class 1
1997 3.70 cents 13.22 % (4)
1998 3.73 3.52 (4)
Class 2 (5)
1997 3.70 13.22 (4)
1998 3.73 3.52 (4)
Global Small Capitalization Fund (6)
Class 1
1998 .62 cents .96 % (4)
Class 2
1998 .62 .96 (4)
Growth Fund
Class 1
1993 6.43 cents 20.40 %
1994 6.09 29.58
1995 5.91 35.47
1996 5.42 30.88
1997 4.81 45.14
1998 4.74 20.29 (4)
Class 2 (5)
1997 4.81 45.14
1998 4.74 20.29 (4)
International Fund
Class 1
1993 .23 cents 17.70 %
1994 1.01 19.66
1995 .16 24.66
1996 1.24 32.08
1997 .41 50.12
1998 .33 16.87 (4)
Class 2 (5)
1997 .41 50.12
1998 .33 16.87 (4)
Growth Income Fund
Class 1
1993 7.02 cents 24.93 %
1994 6.39 29.26
1995 6.21 26.91
1996 5.75 31.27
1997 4.87 37.55
1998 4.72 18.87 (4)
Class 2 (5)
1997 4.87 37.55
1998 4.72 18.87 (4)
Asset Allocation Fund
Class 1
1993 6.85 cents 19.01 %
1994 6.38 36.13
1995 6.27 39.89
1996 5.60 50.62
1997 4.98 34.14
1998 4.82 14.56 (4)
Class 2 (5)
1997 4.98 34.14
1998 4.82 14.56 (4)
Bond Fund (7)
Class 1
1996 - 32.83 % (4)
1997 - 52.93
1998 31.69 (4)
Class 2 (5)
1997 - 52.93
1998 - 31.69 (4)
High-Yield Bond Fund
Class 1
1993 - 34.05 %
1994 - 38.46
1995 - 31.73
1996 - 44.81
1997 - 50.22
1998 - 42.27 (4)
Class 2 (5)
1997 - 50.22
1998 - 42.27 (4)
U.S. Government/AAA-Rated Securities Fund
Class 1
1993 - 21.69 %
1994 - 45.21
1995 - 30.11
1996 - 30.45
1997 - 53.80
1998 - 46.70 (4)
Class 2 (5)
1997 - 53.80
1998 - 46.70 (4)
Cash Management Fund
Class 1
1993 - -
1994 - -
1995 - -
1996 - -
1997 - -
1998 - -
Class 2 (5)
1997 - -
1998 - -
1 The periods
ended 1993
through 1997
represent fiscal
years ended
November 30; the
period ended
1998 represents
the six months
ended May 31
(unaudited).
2 Brokerage
commissions
paid on portfolio
transactions
increase the cost
of securities
purchased or
reduce the
proceeds of
securities sold
and are not
separately
reflected in the
funds' statement
of operatins.
Shares traded on
a principal basis
(without
commissions),
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
transaction amount because
of the lower per-share
prices of many
non-U.S. securities.
3 Commenced operations
April 30, 1997
4 Based on operations
for the period shown
and, accordingly, not
representative of a
full year.
5 Shares offered for
sale commencing
April 30, 1997.
6 Commenced operations
April 30, 1998.
7 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)
MARY MYERS KAUPPILA
Boston, Massachusetts
Founder and President,
Energy Investment, Inc.
KIRK P. PENDLETON
Southampton, Pennsylvania
Chairman of the Board and
Chief Executive Officer,
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
OTHER OFFICERS
JAMES K. DUNTON
Los Angeles, California
Senior Vice President of the series
Senior Vice President and Director,
Capital Research and Management Company
ABNER D. GOLDSTINE
Los Angeles, California
Senior Vice President of the series
Senior Vice President and Director,
Capital Research and Management Company
ALAN N. BERRO
Los Angeles, California
Vice President of the series
Senior Vice President,
Capital Research Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President of the series
Senior Vice President - Fund Business Management Group,
Capital Research and Management Company
CLAUDIA P. HUNTINGTON
Los Angeles, California
Vice President of the series
Senior Vice President,
Capital Research and Management Company
ROBERT W. LOVELACE
Los Angeles, California
Vice President of the series
Executive Vice President and Director,
Capital Research Company
DONALD D. O'NEAL
San Francisco, California
Vice President of the series
Vice President,
Capital Research and Management Company
JOHN H. SMET
Los Angeles, California
Vice President of the series
Vice President,
Capital Research and Management Company
CHAD L. NORTON
Los Angeles, California
Secretary of the series
Vice President - Fund Business
Management Group,
Capital Research and Management Company
ROBERT P. SIMMER
Norfolk, Virginia
Treasurer of the series
Vice President - Fund Business
Management Group,
Capital Research and Management Company
SHERYL F. JOHNSON
Norfolk, Virginia
Assistant Treasurer of the series
Assistant Vice President - Fund Business
Management Group,
Capital Research and Management Company
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
Paul, Hastings, Janofsky & Walker llp
555 South Flower Street
Los Angeles, California 90071-2371
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.
Printed on recycled paper
Litho in USA a/fs/3844
(c)1998 American Funds Distributors, Inc.
Lit. No. VI-013-0798
