[THE AMERICAN FUNDS(SM) INSURANCE SERIES]
AMERICAN
VARIABLE
INSURANCE
SERIES
1999 SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED MAY 31
[cover: various flower seed packets]
FUND RESULTS AT A GLANCE
AMERICAN VARIABLE INSURANCE SERIES(R)
American Variable Insurance Series is the underlying investment vehicle for the
American Legacy variable annuities and other insurance products. The series'
portfolios are managed by Capital Research and Management Company, investment
adviser to the 29 mutual funds in The American Funds Group,(r) the nation's
third-largest fund family.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Total Returns
period ended periods ended June 30, 1999
May 31, 1999
5-Year
Average Average
Annual Annual
6-Month 1-Year Compound Compound
Total Return Total Return Return Return
Page
6 Global Growth Fund (since +17.77% +29.43% +26.75%* -
4/30/97)
11 Global Small Capitalization
Fund (since 4/30/98) +34.44 +46.83 +33.54* -
16 Growth Fund +26.15 +43.47 +28.50 +19.52%
21 International Fund (since 5/1/90) +14.94 +20.43 +16.20 +12.64*
27 Growth-Income Fund +13.26 +21.30 22.82 +15.93
33 Asset Allocation Fund (since + 6.94 + 9.54 +17.74+12.70*
8/1/89)
41 Bond Fund (since 1/2/96) + 0.95 + 1.41 + 6.05* -
48 High-Yield Bond Fund + 3.46 - 0.24 9.47 +10.30
55 U.S. Government/AAA-Rated - 0.47 + 3.16 6.82 7.55
Securities Fund
59 Cash Management Fund(+) 2.24 + 4.80 + 5.10 5.06
</TABLE>
*Reflects results for the lifetime of the fund, which is shorter than the
complete period.
(+)As of June 30, 1999, the Cash Management Fund's seven-day annualized yield
was 4.37%.
This table shows the investment results for the funds in American Variable
Insurance Series. The variable annuities and life insurance contracts that use
the series' funds contain certain fees and expenses not reflected here.
Investment results through May 31, 1999, cover the first half of our current
fiscal year. Investment results as of June 30, 1999, are through the end of the
most recent calendar quarter.
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS. UNIT
PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY. INVESTING FOR SHORT PERIODS
MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY
DEPOSITS OF, OR GUARANTEED BY, A BANK OR ANY OTHER ENTITY. INVESTMENTS OUTSIDE
THE UNITED STATES, ESPECIALLY THOSE IN DEVELOPING COUNTRIES, INVOLVE ADDITIONAL
RISKS, SUCH AS CURRENCY FLUCTUATIONS. HIGH-YIELD BONDS ARE SUBJECT TO GREATER
FLUCTUATIONS IN VALUE AND RISK OF LOSS OF INCOME AND PRINCIPAL, AS IS MORE
FULLY DESCRIBED IN THE PROSPECTUS.
ABOUT OUR COVER: With a wide range of investment options and many features and
services, American Legacy helps contractholders sow the seeds of a strong
financial future.
FELLOW INVESTORS:
This report covers the first half of American Variable Insurance Series' 1999
fiscal year - the six months from December 1, 1998, to May 31, 1999. The funds
in the series serve as the underlying investment vehicles for the American
Legacy variable annuities and other insurance products.
During the six-month period, global equity markets made considerable progress;
bond prices, on the other hand, were generally lackluster. These trends were
reflected to varying degrees in the results for the series' funds.
MARKETS SHIFT DIRECTION
Broadly speaking, most major stock market indexes ended the period higher than
where they began. The unmanaged Standard & Poor's 500 Composite Index, a widely
used proxy for large U.S. stocks, rose 13% for the six months with dividends
reinvested. Smaller stocks followed closely behind, rallying from depressed
levels to gain 11% as measured by the Russell 2000 Index. International stocks,
as tracked by the Morgan Stanley Capital International EAFE(r) (Europe,
Australasia, Far East) Index, also advanced, increasing 4%.
Broad measures, however, do not reveal where gains were concentrated, and the
half-year saw a marked shift in sector leadership. Beginning in April,
investors moved away from the glamour of technology and other high-growth
issues to embrace cyclical and other so-called "value" stocks. The new market
favorites included paper and metals producers, oil companies and manufacturers
of capital equipment, such as data processors and electronic components.
Although technology and other growth stocks are well-represented in the series'
portfolios, we have been concerned for some time about the high valuations of
many of these issues and have been looking elsewhere for better values. As a
result, the rally proved to be a boon for the series' stock funds, all five of
which rose by double digits; most also finished well ahead of their benchmarks.
Other neglected markets also emerged from the shadows during the six months.
Investors returned cautiously to Japan (+15%)* amid early signs of an economic
recovery. Optimism about returning economic growth also buoyed stocks in many
developing countries, notably South Korea (+88%), Indonesia (+51%) and Mexico
(+47%).
*All country returns are based on MSCI indexes, expressed in dollar terms and
assume reinvestment of dividends.
European markets, meanwhile, did not fare as well. They were hampered by
economic sluggishness, the Balkan conflict and disappointment that the common
currency, the euro, has weakened considerably since its introduction on January
1. Stocks rose moderately in the United Kingdom (+6%), modestly in France
(+2%), and declined in Germany (-7%) and Italy (-3%). That said, we set our
sights on individual companies, not countries, and we are pleased to note that
quite a few holdings in the portfolios outpaced the markets in which they are
traded.
Merger activity once again made world headlines. Notable during the period were
the consolidation of pharmaceutical giants Astra of Sweden and Zeneca of the
U.K.; the acquisition by Vodafone, the British mobile phone operator, of
U.S.-based AirTouch Communications; and Olivetti's hostile takeover of Telecom
Italia. AT&T continued to build its cable television empire in a push to lead
the next wave of the communications revolution: It acquired Tele-Communications
in April and won a bid for MediaOne in May. Microsoft, which is also investing
in cable companies, joined the fray and bought a sizable stake in AT&T.
[Begin Sidebar]
GLOBAL GROWTH FUND
Where the Fund's Assets are Invested
(as of May 31, 1999)
<TABLE>
<CAPTION>
<S> <C>
Percent of
Net Assets
THE AMERICAS
United States 31.0%
Canada 6.4
Mexico 3.0
Brazil .9
Other Americas .5
41.8
EUROPE
United Kingdom 10.0
Germany 4.0
Sweden 2.9
Netherlands 2.3
Italy 2.2
France 1.7
Spain 1.1
Luxembourg .7
Norway .6
Other Europe 1.1
26.6
ASIA/PACIFIC RIM
Japan 9.0
Australia 3.3
Hong Kong 1.3
Singapore 1.0
South Korea 1.0
India .7
Other Asia/Pacific Rim .5
16.8
OTHER COUNTRIES .8
Cash & Equivalents 14.0
Total 100.0%
</TABLE>
[End Sidebar]
A HALF-EMPTY GLASS?
If stock investors seemed doggedly optimistic at times, bond investors tended
to focus on potential economic problems. Indeed, the U.S. economy, which has
been the engine for global growth for some time, continues to confound
expectations. Wealth from a rising stock market and an almost fully employed
labor force have helped boost consumer demand, yet inflation remains remarkably
quiescent. Explanations range from technological advances that have improved
productivity (the output per worker) to competition from less well-off nations
that are exporting their way out of financial difficulties.
Nonetheless, concerns about the pace of growth in the U.S. raised the specter
of rising inflationary pressures and led the Federal Reserve Board to announce
in May a "bias" toward a pre-emptive hike in short-term interest rates; indeed,
a quarter-point increase in the federal funds rate (the rate banks charge each
other for overnight loans) occurred in June, after the close of the reporting
period. The anticipation of higher rates dampened market prices of existing
government bonds and most other types of fixed-income securities. Yields on
30-year Treasury bonds, which had dipped below 5% in October, rose to over 6% -
sharply reducing bond returns. (Bond yields and prices move in opposite
directions.) High-yield bonds held up somewhat better, gaining 2% as measured
by the Salomon Smith Barney High-Yield Bond Index, although default rates
increased as the market weakened.
A CONSISTENT APPROACH
We are pleased to note that we are once again expanding our portfolio of
choices. New World Fund, the series' eleventh investment option, is designed to
tap the growth potential of developing countries while tempering the volatility
normally associated with these markets. The fund opened on June 17, shortly
after the close of our reporting period. Your financial adviser can tell you
more about New World Fund, as well as additional features of your insurance
contract.
The eleven funds in American Variable Insurance Series offer a diverse spectrum
of tools to help you build a secure financial future. Regardless of investment
objective, however, all of the funds are guided by the singular philosophy of
Capital Research and Management Company, the series' investment adviser.
Capital's approach - which is characterized by careful attention to risk, a
search for value and a long-term perspective - remains consistent through all
market conditions. It has not changed in the nearly seven decades that we have
been managing investments.
We invite you to familiarize yourself with your investments by leafing through
the portfolio listings that begin on page 6. Here are brief comments about each
of the funds (all returns are for the six months ended May 31):
[Begin Sidebar]
GLOBAL SMALL
CAPITALIZATION FUND
Where the Fund's Assets are Invested
(as of May 31, 1999)
<TABLE>
<CAPTION>
<S> <C>
Percent of
Net Assets
THE AMERICAS
United States 50.3%
Canada 6.7
Brazil .8
Other Americas .7
58.5
EUROPE
United Kingdom 5.4
Germany 1.6
Ireland 1.2
Sweden 1.2
Finland .9
Denmark .7
Turkey .7
Other Europe 1.3
13.0
ASIA/PACIFIC RIM
Japan 4.5
Hong Kong 1.9
Singapore 1.9
Australia 1.7
New Zealand .9
Indonesia .8
Other Asia/Pacific Rim .7
12.4
OTHER COUNTRIES 4.5
Cash & Equivalents 11.6
Total 100.0%
</TABLE>
[End Sidebar]
THE GLOBAL GROWTH FUND appreciated 17.8%. This fund has the flexibility to
invest virtually anywhere in the world and, indeed, the portfolio is very
well-diversified, with stocks of 141 companies based in 28 countries. As the
table on page 2 shows, U.S. stocks constituted the largest portion of assets,
but the fund was also helped by its successful holdings in Latin America,
particularly Mexico: Telefonos de Mexico and Grupo Televisa, for example, were
among the top five gainers during the period. The latter is Mexico's leading
publisher and broadcaster. Media companies did well overall, in fact, boosting
the prices of a number of the fund's largest holdings, including Viacom, Time
Warner and Reuters.
THE GLOBAL SMALL CAPITALIZATION FUND rebounded smartly from last year's lows to
post a very strong 34.4% return. Smaller stocks - which we define as those
having market capitalizations between $50 million and $1.2 billion - are
typically subject to greater price swings than their larger counterparts.
Happily, that is as true for the upside as it is for the downside, as the
recent market surge demonstrated. More importantly, good stock selection,
supported by extensive proprietary research, helped the fund achieve superior
results. In all, the portfolio has investments in 119 companies. Many are
little-known, highly specialized technology firms, but the fund has holdings
across a wide range of industries.
THE GROWTH FUND posted a 26.1% increase. Although the fund's primary objective
is growth of capital, we have generally avoided the narrow list of so-called
"megacapitalization growth" stocks that have infatuated many other investors in
recent months. Instead, we have sought out a wider range of solid, well-managed
companies we believed would reward shareholders over the long term. That
position stood us in good stead during the period, when the majority of the
fund's holdings appreciated in price. Many of the fund's largest media and
technology-related issues - Time Warner, Texas Instruments and Applied
Materials, to name a few - made particularly strong contributions to results.
THE INTERNATIONAL FUND returned 14.9%. The fund is designed to add a measure of
diversification to a U.S. stock portfolio, as well as expose long-term
investors to the most rewarding international opportunities our research can
uncover. During the period, the fund benefited from its large position - nearly
13% of assets - in Japanese companies, as well as those based in Latin America
and Southeast Asia, regions that have taken the first arduous steps toward
economic recovery. Some of the biggest gainers for the six months were Cemex of
Mexico, Sony Music, South Korea's SK Telecom and Rohm, the Japanese electronics
concern. In Europe, by contrast, returns tended toward the meager, although
several large European holdings - such as Dixons, a British retailer of
consumer electronics, and Deutsche Telekom - advanced strongly in price. The
table to the left shows net assets by country.
[Begin Sidebar]
INTERNATIONAL FUND
Where the Fund's Assets are Invested
(as of May 31, 1999)
<TABLE>
<CAPTION>
<S> <C>
Percent of
Net Assets
EUROPE
United Kingdom 17.3%
Netherlands 6.7
France 6.5
Germany 6.5
Finland 4.6
Italy 4.6
Switzerland 4.6
Spain 2.3
Sweden 2.3
Luxembourg 1.2
Norway 1.2
Other Europe 1.0
58.8
ASIA/PACIFIC RIM
Japan 12.8
Australia 4.8
Taiwan 1.4
Philippines 1.3
Hong Kong .8
South Korea .8
Malaysia .7
People's Republic of China .6
Other Asia/Pacific Rim 1.1
24.3
THE AMERICAS
Mexico 5.1
Canada 4.0
Brazil .8
Other Americas .6
8.2
OTHER COUNTRIES 1.5
Cash & Equivalents 4.9
Total 100.0%
</TABLE>
[End Sidebar]
THE GROWTH-INCOME FUND rose 13.3%. The fund, which generally invests in stocks
of established, dividend-paying companies, is the series' largest, with net
assets of $7.9 billion. The portfolio comprises investments in stocks of 176
companies and cuts a broad swath across industries. Technology holdings were
among those showing the strongest gains, but the fund was also well-positioned
to benefit from the surge in cyclical and commodities-related issues toward the
end of the period. Amid signs of a global recovery, investors bid up stock
prices of companies that supply the building blocks for growth, ranging from
basic materials producers, such as Georgia-Pacific and Alcoa, to industrial and
capital equipment concerns, including Ingersoll-Rand and Schlumberger.
THE ASSET ALLOCATION FUND had a 6.9% return. The fund is managed as though it
constitutes the complete portfolio of a prudent investor, with a balance of
stocks, bonds and short-term instruments. The equity position accounts for
nearly two-thirds of assets, with investments in 85 companies. The emphasis is
on large, solid businesses; holdings include some of the world's best-known
corporations - household names such as IBM, Citigroup, Atlantic Richfield and
DuPont - many of which did quite well during the period. However, overall
results were dampened by the bonds in the portfolio, which fell on fears of
rising interest rates. Roughly one-third of assets are invested in bonds; the
remaining 7% is held in cash and equivalents.
THE BOND FUND registered a modest gain of 0.9%. Although the fund can invest in
virtually every sector of the fixed-income market, the six months offered few
places to hide. Corporate bonds fared somewhat better than U.S. Treasury
securities, but the prospect of an overheating economy and credit tightening by
the Federal Reserve sent jitters throughout the fixed-income universe. At the
moment, it remains to be seen whether inflationary pressures will indeed
intensify. In the meantime, buying opportunities abound and the portfolio
remains extremely well-diversified. Investments encompass a wide range of
corporate and government bonds issued in the U.S. and throughout the world.
THE HIGH-YIELD BOND FUND rose 3.5% in a difficult fixed-income environment. The
fund invests primarily in lower quality bonds, which typically pay higher
yields to compensate for a higher risk of default. Fundamental research helps
us minimize that risk; it also helps us uncover hidden gems in the marketplace.
That marketplace has been weakening lately, due in part to tighter bank lending
standards, which can hit lower rated issues particularly hard. A silver lining
to these difficulties has been that bond prices in many cases have dropped to
an acceptable range, and we have found a number of promising investments in the
media, leisure and telecommunications sectors.
THE U.S. GOVERNMENT/AAA-RATED SECURITIES FUND declined 0.5%. Although the fund
carries virtually no risk of default, it is nonetheless vulnerable to changes
in interest rates, a fact that was amply demonstrated during the period. U.S.
Treasury bonds peaked in October, shortly before the beginning of the reporting
period. The "flight to quality" that had boosted government bonds through late
summer and early fall sharply reversed itself as investors returned to stocks
and other financial assets. Matters worsened in the new year, when stronger
than expected economic data rekindled inflation fears. The fund's declines were
tempered by its investments in mortgage-backed securities, which generally held
up better than U.S. Treasury bonds.
THE CASH MANAGEMENT FUND provided a six-month return of 2.2%. Short-term rates
remained fairly flat, although yields rose modestly to accommodate the
anticipated increase in the federal funds rate (which rose to 5% in June).
Managed for relatively stable value and a reasonable rate of return, the fund
can be an important diversification tool, as well as a base for making
investments into other funds in the series. About 28% of assets are invested in
federal agency bills. The balance is concentrated in high-quality commercial
paper.
We look forward to reporting to you in six months.
Cordially,
/s/James F. Rothenberg /s/James K. Dunton
James F. Rothenberg James K. Dunton
Chairman of the Board President
July 12, 1999
We wish to note that Tom Terry has stepped down as the series' chairman of the
board but will continue to serve as a trustee. The new chairman is Jim
Rothenberg, who was president of the series. The new president is Jim Dunton,
who will retain his role as portfolio counselor for the Growth-Income Fund. We
wish to thank Tom for his many years of service and his tireless efforts on
behalf of American Variable Insurance Series.
<TABLE>
American Variable Insurance Series Global Growth Fund
Investment Portfolio, May 31, 1999
<S> <C> <C> <C>
[pie chart]
Percent of
Net Assets
--------
The Americas 41.77%
Europe 26.61%
Asia/Pacific 16.84%
Other 0.82%
Cash & Equivalents 13.96%
100.00%
[end pie chart]
Largest Individual Equity Securities
AstraZenaca 2.71%
Telecom Italia 1.82
Grupo Televisa 1.71
Teleglobe 1.68
Viacom 1.50
Time Warner 1.48
Mannesmann 1.47
Reuters Group 1.44
Pfizer 1.43
Cendant 1.41
Market Percent
Number of Value Of Net
Equity Securities (common and preferred stocks) Shares (000) Assets
- -------------------------------------------- -------- ----------------
TELECOMMUNICATIONS - 15.27%
Telecom Italia SpA, nonconvertible savings (Italy) 1,034,000 5,583
Telecom Italia SpA 110,000 1,131 1.82
Teleglobe Inc. (Canada) 205,000 6,200 1.68
Mannesmann AG (ADR) (Germany) 39,650 5,432 1.47
Deutsche Telekom AG (Germany) 107,500 4,278 1.16
Telefonica, SA (ADR) (Spain) (1) 28,027 4,043 1.10
Global TeleSystems Group, Inc. (USA) (1) 50,000 3,800 1.03
AirTouch Communications (USA) (1) 30,000 3,015 .82
Orange PLC (United Kingdom) (1) 192,000 2,662 .72
DDI Corp. (Japan) 480 2,207 .60
Tele Nordeste Celular Participacoes SA (ADR) (Brazil) 68,900 2,084 .57
Cable & Wireless Communications PLC (United Kingdom) (1) 211,100 2,007 .55
Korea Telecom Corp. (ADR) (South Korea) (1) 52,600 1,673 .45
AT&T Corp. (USA) 28,125 1,561 .42
Telecom Argentina STET-France Telecom SA, 47,000 1,340 .36
Class B (ADR) (Argentina)
China Telecom (Hong Kong) Ltd. (ADR) (People's 31,000 1,329 .36
Republic of China) (1)
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 16,000 1,279 .35
Tele Celular Sul Participacoes SA (ADR) (Brazil) 67,000 1,260 .34
Global Crossing Ltd. (USA - Incorporated in Bermuda) (1) 26,000 1,233 .33
Nippon Telegraph and Telephone Corp. (Japan) 120 1,167 .32
France Telecom SA (France) 13,000 994 .27
Stet Hellas Telecommunications SA (ADR) (Greece) (1) 35,300 803 .22
Millicom International Cellular SA (Luxembourg) (1) 14,000 504 .14
Cia. de Telecomunicaciones de Chile SA (ADR) (Chile) 21,978 478 .13
Time Warner Telecom Inc., Class A (USA) (1) 8,700 223 .06
BROADCASTING & PUBLISHING - 12.36%
Grupo Televisa, SA, ordinary participation certificates 151,000 6,314 1.71
(ADR) (Mexico) (1)
Viacom Inc., Class B (USA) (1) 144,000 5,544 1.50
Time Warner Inc. (USA) 80,000 5,445 1.48
United Pan-Europe Communications NV (Netherlands) (1) 75,600 4,620 1.26
News Corp. Ltd. (Australia) 510,740 4,217 1.14
Fox Entertainment Group, Inc., Class A (USA) (1) 160,000 4,080 1.11
Fuji Television Network Inc. (Japan) 524 2,642 .72
Rogers Communications Inc., Class B (Canada) (1) 125,000 2,579 .70
SBS Broadcasting SA (Denmark-Incorporated in Luxembourg) 60,000 1,950 .53
PRIMEDIA Inc. (USA) (1) 110,000 1,801 .49
ProSieben Media AG (Germany) 36,000 1,534 .42
John Fairfax Holdings Ltd. (Australia) 515,000 1,370 .37
Tribune Co. (USA) 15,400 1,216 .33
Washington Post Co., Class B (USA) 2,000 1,113 .30
Sinclair Broadcast Group, Inc., Class A (USA) (1) 53,800 746 .20
Nippon Television Network Corp. (Japan) 1,050 363 .10
BUSINESS & PUBLIC SERVICES - 8.74%
Reuters Group PLC (United Kingdom) 383,140 5,297 1.44
Cendant Corp. (USA) (1) 281,000 5,181 1.41
Hays PLC (United Kingdom) 360,000 3,352 .91
Rentokil Initial PLC (United Kingdom) 690,800 2,776 .75
Vivendi SA (France) 35,400 2,615
Vivendi SA, rights, expire 1999 (1) 35,400 36 .72
Waste Management, Inc. (USA) 50,000 2,644 .72
Brambles Industries Ltd. (Australia) 99,000 2,639 .72
Infosys Technologies Ltd. (ADR) (India) 50,000 2,488 .67
Securitas AB, Class B (Sweden) 90,000 1,280 .35
Quintiles Transnational Corp. (USA) (1) 30,000 1,219 .33
Adecco SA (Switzerland) (1) 2,000 1,045 .28
Euant NV, New York Registered (Netherlands) (1) 10,600 879 .24
Ratin A/S, Class B (Denmark) 6,300 746 .20
HEALTH & PERSONAL CARE - 7.12%
AstraZeneca PLC (formerly Zeneca Group PLC) (United Kingd 203,960 8,110
AstraZeneca PLC (formerly Astra AB) (1) 45,405 1,782
AstraZeneca PLC (ADR) 3,000 118 2.71
Pfizer Inc (USA) 49,150 5,259 1.43
Avon Products, Inc. (USA) 55,800 2,759 .75
Forest Laboratories, Inc. (USA) (1) 44,000 2,096 .56
Guidant Corp. (USA) 36,000 1,800 .49
Luxottica Group SpA (ADR) (Italy) 100,000 1,575 .43
Glaxo Wellcome PLC (United Kingdom) 52,900 1,465 .40
QLT PhotoTherapeutics Inc. (Canada) (1) 25,000 1,094 .30
Omnicare, Inc. (USA) 7,000 168 .05
ELECTRONIC COMPONENTS - 6.64%
Microchip Technology Inc. (USA) (1) 110,000 4,826 1.31
Murata Manufacturing Co., Ltd. (Japan) 82,000 4,506 1.22
Rohm Co., Ltd. (Japan) 25,000 3,260 .88
Venture Manufacturing (Singapore) Ltd (Singapore) 380,000 2,402 .65
Intel Corp. (USA) 40,000 2,162 .59
Samsung Electronics Co., Ltd. (South Korea) 30,000 2,088
Samsung Electronics Co., Ltd., rights, expire 1999 (1) 2,455 26 .57
Keyence Corp. (Japan) 14,500 2,091 .57
Texas Instruments Inc. (USA) 10,000 1,094 .30
Quantum Corp. (USA) (1) 50,000 991 .27
Altera Corp. (USA) (1) 20,000 696 .19
Micron Technology, Inc. (USA) (1) 9,100 345 .09
DATA PROCESSING & REPRODUCTION - 5.37%
Microsoft Corp. (USA) (1) 56,000 4,518 1.23
Oracle Corp. (USA) (1) 180,000 4,466 1.21
Computer Associates International, Inc. (USA) 70,000 3,312 .90
Rambus Inc. (USA) (1) 34,400 2,666 .72
PeopleSoft, Inc. (USA) (1) 127,000 2,056 .56
Gateway 2000, Inc. (USA) (1) 16,000 973 .26
Dassault Systemes SA (France) 29,600 969 .26
Storage Technology Corp. (USA) (1) 40,000 795 .22
Momentum Business Applications, Inc. (USA) (1) 5,000 40 .01
BANKING - 4.07%
Bank of America Corp. (formerly BankAmerica Corp.) (USA) 72,000 4,658 1.26
Bank of Nova Scotia (Canada) 161,000 3,491 .95
Washington Mutual, Inc. (USA) 60,000 2,291 .62
Westpac Banking Corp. (Australia) 215,666 1,475 .40
ABN AMRO Holding NV (Netherlands) 65,915 1,457 .39
Development Bank of Singapore Ltd. (Singapore) 110,000 1,135 .31
ForeningsSparbanken AB, Class A (Sweden) 24,700 505 .14
AUTOMOBILES - 3.05%
Suzuki Motor Corp. (Japan) 281,000 3,973 1.08
Nissan Motor Co., Ltd. (Japan) 570,000 2,498 .68
Volvo AB, Class B (Sweden) 80,000 2,025 .55
Bayerische Motoren Werke AG (Germany) 2,860 1,827 .50
Honda Motor Co., Ltd. (Japan) 22,000 899 .24
METALS: NONFERROUS - 2.62%
Freeport-McMoRan Copper & Gold Inc., Class B (USA) 335,000 4,732 1.29
Alcoa Inc. (formerly Aluminum Co. of America) (USA) 61,000 3,355 .91
Billiton PLC (United Kingdom) 500,000 1,565 .42
ELECTRICAL & ELECTRONICS - 2.35%
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 177,500 4,731 1.28
Nortel Networks Corp. (formerly Northern 33,400 2,505 .68
Telecom Ltd.) (Canada) (1)
Nokia Corp., Class A (ADR) (Finland) 20,000 1,420 .39
LEISURE & TOURISM - 1.96%
Seagram Co. Ltd. (Canada) 65,000 3,376 .91
Mirage Resorts, Inc. (USA) (1) 80,000 1,640 .45
Village Roadshow Ltd., Class A, 5.50% preferred 1,078,301 1,618 .44
(Australia)
King World Productions, Inc. (USA) (1) 8,850 295 .08
Carnival Corp. (USA) 7,100 291 .08
MERCHANDISING - 1.94%
Consolidated Stores Corp. (USA) (1) 113,700 3,908 1.06
Cifra, SA de CV (ADR) (Mexico) (1) 60,000 1,065 .29
Sunglass Hut International, Inc. (USA) (1) 56,800 866 .23
Koninklijke Ahold NV (Netherlands) 19,600 682 .19
iMALL Inc. (USA) (1) 40,000 630 .17
CHEMICALS - 1.91%
Monsanto Co. (USA) 83,800 3,478 .94
BOC Group PLC (United Kingdom) 145,000 2,479 .67
Valspar Corp. (USA) 30,000 1,095 .30
ELECTRONIC INSTRUMENTS - 1.88%
Applied Materials, Inc. (USA) (1) 70,000 3,850 1.05
ADVANTEST CORP. (Japan) 21,600 1,707 .46
KLA-Tencor Corp. (USA) (1) 30,000 1,365 .37
MULTI-INDUSTRY - 1.76%
First Pacific Co. Ltd. (Hong Kong) 4,054,000 3,137 .85
Preussag AG (Germany) 32,811 1,690 .46
Orkla AS, Class A (Norway) 107,000 1,676 .45
RECREATION & OTHER CONSUMER PRODUCTS - 1.19%
EMI Group PLC (United Kingdom) 557,000 3,961 1.08
Hasbro, Inc. (USA) 14,250 408 .11
INDUSTRIAL COMPONENTS - .99%
THK Co., Ltd. (Japan) 120,000 2,224 .60
NGK Spark Plug Co., Ltd. (Japan) 135,000 1,422 .39
MISCELLANEOUS MATERIALS & COMMODITIES - .84%
Sealed Air Corp. (USA) (1) 50,000 3,106 .84
ENERGY SOURCES - .77%
TOTAL, Class B (ADR) (France) (1) 20,000 1,216 .33
Woodside Petroleum Ltd. (Australia) 142,000 884 .24
"Shell" Transport and Trading Co., PLC New York 10,000 441 .12
Registered (United Kingdom)
Fletcher Challenge Energy (New Zealand) 123,030 296 .08
APPLIANCES & HOUSEHOLD DURABLES - .75%
Sony Corp. (Japan) 29,600 2,770 .75
AEROSPACE & MILITARY TECHNOLOGY - .72%
Bombardier Inc., Class B (Canada) 170,000 2,642 .72
REAL ESTATE - .71%
Mandamas AB (Sweden) 377,600 2,105 .57
Unibail, bearer (France) (1) 3,700 500
Unibail, warrants, expire 2000 (1) 3,700 16 .14
WHOLESALE & INTERNATIONAL TRADE - .51%
Li & Fung Ltd. (Hong Kong - Incorporated in Bermuda) 800,000 1,888 .51
FOOD & HOUSEHOLD PRODUCTS - .49%
Reckitt & Colman PLC (United Kingdom) 90,000 1,008 .27
Benckiser NV, Class B (Netherlands) 15,098 814 .22
FINANCIAL SERVICES - .45%
Shohkoh Fund & Co., Ltd. (Japan) 3,000 1,671 .45
INSURANCE - .43%
Fairfax Financial Holdings Ltd. (Canada) (1) 5,000 1,404
Fairfax Financial Holdings Ltd., subscription, 600 169 .43
expires 1999 (1)
GOLD MINES - .32%
Anglogold Ltd. (South Africa) 30,000 1,188 .32
BEVERAGES & TOBACCO - .14%
Grupo Industrial Emprex-B (Mexico) 150,000 499 .14
MACHINERY & ENGINEERING - .09%
Kvaerner ASA, Class A (Norway) 20,600 339
Kvaerner ASA, rights, expire 1999 (1) 20,600 10 .09
ENERGY EQUIPMENT - .09%
Schlumberger Ltd. (Netherlands Antilles) 5,400 325 .09
MISCELLANEOUS - 0.51%
Other equity securities in initial period of acquisition 1,883 .51
----------------
TOTAL EQUITY SECURITIES (cost: $263,542,000) 317,104 86.04
----------------
Principal Amount
Short Term Securities (000)
- -------------------------------------------- -------- ----------------
CORPORATE SHORT-TERM NOTES - 14.94%
BMW US Capital Corp. 4.78%-4.79% due 7/6-7/14/1999 5,500,000 5,472 1.49
Diageo Capital PLC 4.78% due 7/6-7-15/1999 (2) 5,500,000 5,471 1.48
Den norske stats olijeselskap AS 4.83% due 6/18/1999 (2) 5,200,000 5,188 1.41
France Telecom SA 4.79%-4.80% due 6/4/1999 4,430,000 4,428 1.20
Siemens Capital Corp. 4.82% due 9/30/1999 3,300,000 3,244 .88
Rio Tinto America Inc. 4.82% due 7/12/1999 (2) 3,200,000 3,182 .87
Bayer Corp. 4.78% due 7/27/1999 (2) 3,100,000 3,076 .83
DaimlerChrysler AG 4.89% due 8/30/1999 3,100,000 3,060 .83
BP America Inc. 4.80%-4.90% due 6/1-7/9/1999 3,000,000 2,986 .81
Canadian Wheat Board 4.77% due 7/22/1999 3,000,000 2,979 .81
KfW International Finance Inc 4.80% due 6/24/1999 2,800,000 2,791 .76
Halifax PLC 4.78% due 6/21/1999 2,600,000 2,593 .71
Toyota Motor Credit Corp. 4.80% due 6/22/1999 2,300,000 2,293 .62
American Honda Finance Corp. 4.81% due 6/10/1999 2,100,000 2,097 .57
Glaxo Wellcome PLC 4.85% due 8/18/1999 (2) 1,800,000 1,780 .48
Svenska Handelsbank Inc. 4.81% due7/14/1999 1,700,000 1,690 .46
Lloyds Bank PLC 4.78% due 6/14/1999 1,500,000 1,497 .41
Electricite de France 4.83% due 7/15/1999 1,200,000 1,193 .32
------------------
TOTAL SHORT-TERM SECURITIES (cost: $55,025,000) 55,020 14.94
------------------
TOTAL INVESTMENT SECURITIES (COST: $318,567,000) 372,124 100.98
Excess of payables over cash and receivables $3,613 .98
------------------
NET ASSETS $368,511100.00%
==================
(1) Non-income-producing security.
(2) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
ADR=American Depositary Receipts
See Notes to Financial Statements
Equity Securities appearing in the portfolio
since November 30, 1998
ABN AMRO
Adecco
Benckiser
Billiton
DDI
Development Bank of Singapore
Equant
First Pacific
Forest Laboratories
Gateway 2000
Global Crossing
Global Telesystems Group
Hasbro
Hays
Honda Motor
iMALL
Infosys Technologies
John Fairfax Holdings
Keyence
KLA-Tencor
Korea Telecom
Li & Fung
Momentum Business Applications
Nippon Television Network
PRIMEDIA
QLT PhotoTherapeutics
Quintiles Transnational
Rambus
Reckitt & Colman
Rogers Communications
Samsung Electronics
SBS Broadcasting System
Securitas
Storage Technology
Sunglass Hut International
Tele Celular Sul Participacoes
Tele Nordeste Celular Participacoes
Teleglobe
THK
Time Warner Telecom
Tribune
Unibail
United Pan-Europe Communications
Venture Manufacturing (Singapore)
Volvo
Washington Post
Equity Securities eliminated from the portfolio
since November 30, 1998
America Online
CKS Group
Coca-Cola Amatil
Coca-Cola Beverages
Columbia/HCA Healthcare
Credicorp
Gambro
Nine West Group
Raisio Group
SOFTBANK
Suez Lyonnaise des Eaux
Tele-Communications
TELECEL-Comunicacoes Pessoais
TV Azteca
Walt Disney
Ziff-Davis
</TABLE>
<TABLE>
American Variable Insurance Series Global Small Capitalization Fund
Investment Portfolio, May 31, 1999
<S> <C> <C> <C>
[pie chart]
Percent of
Net Assets
The Americas 58.50%
Europe 12.97%
Asia/Pacific 12.45%
Other Countries 4.52%
Cash & Equivalents 11.56%
100.00%
[end pie chart]
Largest Individual Stocks
PMC-Sierra 2.88%
Power Integrations 2.47
HNC Software 2.43
Sanmina 2.22
Lands' End 1.85
TranSwitch 1.76
Louis Dreyfus Natural Gas 1.65
Jones Intercable 1.53
Micrel 1.42
Great Plains Software 1.39
Number of Market ValPercent of
EQUITY SECURITIES (common and preferred stocks) Shares (000) Net Assets
ELECTRONIC COMPONENTS - 15.54%
PMC-Sierra, Inc. (USA)(1) 70,000 $3,399 2.88%
Power Integrations, Inc. (USA) (1) 60,000 2,914 2.47
Sanmina Corp. (USA) (1) 35,000 2,624 2.22
Micrel, Inc. (USA)(1) 30,000 1,680 1.42
Venture Manufacturing (Singapore) Ltd. (Singapore) 168,000 1,062
Venture Manufacturing (Singapore) Ltd. (2) 90,000 569 1.38
Applied Micro Circuits Corp. (USA) (1) 25,000 1,478 1.25
SIPEX Corp. (USA)(1) 85,000 1,376 1.16
Cymer, Inc. (USA) (1) 70,000 1,282 1.09
DuPont Photomasks, Inc. (USA)(1) 20,000 778 .66
MegaChips Corp. (Japan)(2) 10,000 610 .52
NatSteel Electronics Ltd (Singapore)(2) 175,000 584 .49
BUSINESS & PUBLIC SERVICES - 13.88%
Flextronics International Ltd. (USA --Incorporated in Singa 30,000 1,500 1.27
Black Box Corp. (USA)(1) 29,500 1,346 1.14
Mosaic Group Inc. (Canada)(1) 250,000 967 .82
Sapiens International Corp. NV (Israel)(1) 100,000 950 .80
InfoCure Corp. (USA)(1) 25,000 922 .78
CBT Group PLC (ADR) (Ireland)(1) 60,000 915 .77
Midas, Inc. (USA) 28,700 899 .76
MDC Communications Corp., Class A (Canada)(1) 62,400 815 .69
Budget Group, Inc., Class A (USA)(1) 60,000 803 .68
Corporate Services Group PLC (United Kingdom) 578,750 690 .58
Rhon-Klinikum AG, preferred (Germany) 7,000 659 .56
Medicis Pharmaceutical Corp., Class A (USA)(1) 23,800 637 .54
Photobition Group PLC (United Kingdom) 180,153 609 .52
Sapient Corp. (USA)(1) 9,400 599 .49
Profit Recovery Group International, Inc. (USA)(1) 15,000 552 .47
NCO Group, Inc. (USA)(1) 15,100 461 .39
International Container Terminal Services, Inc. 4,500,000 457 .39
(Philippines)(1)
Peapod, Inc. (USA)(1) 49,800 448 .38
Kroll-O'Gara Co. (USA)(1) 18,700 376 .32
Falck A/S (Denmark) 5,000 361 .31
Protection One, Inc. (USA)(1) 62,400 343 .29
ABR Information Services, Inc. (USA)(1) 13,400 338 .29
Brunel International NV (Netherlands) 13,048 271 .23
Extreme Networks, Inc. (USA)(1) 5,000 213 .18
MEDION AG (Germany)(1) 500 104
MEDION AG (1)(2) 200 42 .13
Fujitsu Support and Service Inc. (Japan)(2) 1,000 115 .10
DATA PROCESSING & REPRODUCTION - 10.09%
HNC Software Inc. (USA)(1) 105,900 2,866 2.43
Great Plains Software, Inc. (USA)(1) 43,700 1,647 1.39
Aspect Development, Inc. (USA)(1) 100,000 1,425 1.21
Remedy Corp. (USA)(1) 55,000 1,045 .88
Visio Corporation (USA)(1) 30,000 986 .83
RadiSys Corp. (USA)(1) 30,000 924 .78
Epicor Software Corp. (formerly Platinum Software 100,100 707 .60
Corp.) (USA)(1)
National Computer Systems, Inc. (USA) 20,000 625 .53
Momentum Business Applications, Inc. (USA)(1) 60,000 480 .41
Inet Technologies, Inc. (USA) (1) 27,500 469 .40
Saville Systems Ireland PLC (ADR) (IRELAND)(1) 25,000 392 .33
Nice Systems Ltd. (ADR) (Israel)(1) 14,000 357 .30
MERCHANDISING - 6.15%
Lands' End, Inc. (USA)(1) 51,000 2,180 1.85
DFS Furniture Co. PLC (United Kingdom) 250,000 1,185 1.00
Rent-Way, Inc. (USA)(1) 35,000 879 .75
Migros Turk TAS (Turkey) 650,000 831 .70
Komori Corp. (Japan) 40,000 827 .70
School Specialty, Inc. (USA)(1) 45,000 669 .57
EUROBIKE AG (Germany) 40,000 512 .43
Dickson Concepts (International) Ltd. (Hong Kong-- 310,000 180 .15
Incorporated in Bermuda)
BROADCASTING & PUBLISHING - 6.09%
Jones Intercable, Inc., Class A (USA)(1) 33,800 1,808 1.53
Century Communications Corp., Class A (USA)(1) 25,000 1,331 1.13
Central European Media Enterprises Ltd., Class A (USA - 190,000 1,140 .97
Incorporated in Bermuda)(1)
Westwood One, Inc. (USA)(1) 32,100 1,115 .94
APN News & Media Ltd. (Australia) 408,759 698 .59
United Television, Inc. (USA) 6,000 597 .51
Sondagsavisen A/S (Denmark) 7,500 501 .42
ENERGY SOURCES - 5.09%
Louis Dreyfus Natural Gas Corp. (USA)(1) 100,000 1,950 1.65
Ramco Energy PLC (United Kingdom)(1) 291,400 1,399 1.19
Chieftain International, Inc. (Canada)(1) 80,000 1,395 1.18
Vintage Petroleum, Inc. (USA) 62,000 698 .59
Mitchell Energy & Development Corp., nonvoting 27,400 442 .37
Class B (USA)
Premier Oil PLC (United Kingdom) 430,000 134 .11
LEISURE & TOURISM - 4.18%
Station Casinos, Inc. (USA)(1) 79,600 1,378 1.17
Four Seasons Hotels Inc. (Canada) 17,000 715 .61
Morton's Restaurant Group, Inc. (USA)(1) 35,000 617 .52
Lions Gate Entertainment Corp. (Canada)(1) 200,000 409
Lions Gate Entertainment Corp. (1)(2) 100,000 204 .52
Imax Corp. (Canada)(1) 20,000 440 .37
N.V. Kinepolis Group (Belgium) 3,544 402 .34
Cheesecake Factory Inc. (USA)(1) 14,300 395 .33
CinemaxX AG (Germany)(1) 12,000 378 .32
ELECTRONIC INSTRUMENTS - 4.06%
TranSwitch Corp. (USA)(1) 45,000 2,081 1.76
ASM Pacific Technology Ltd. (Hong Kong) 1,900,000 1,237 1.05
Disco Corp. (Japan) 10,000 519 .44
Orbotech Ltd. (Israel)(1) 12,000 513 .43
Etec Systems, Inc. (USA)(1) 16,600 445 .38
RECREATION OTHER CONSUMER PRODUCTS - 2.97%
Avex Inc. (Japan) 16,200 1,575 1.33
Radica Games Ltd. (Hong Kong)(1) 70,000 744 .64
Movado Group, Inc. (USA) 30,000 724 .61
Metromedia International Group, Inc. (USA)(1) 55,600 462 .39
BEVERAGES & TOBACCO - 2.93%
Shikoku Coca-Cola Bottling Co., Ltd. (Japan) (1) 70,000 1,061 .90
Corporate Investments Ltd. (New Zealand) 2,500,000 1,058 .90
Quilmes Industrial SA, preferred (ADR) (Luxembourg) (1) 45,000 509 .43
Robert Mondavi Corp., Class A (USA)(1) 13,600 459 .39
Simeon Wines Ltd. (Australia) 150,000 372 .31
HEALTH & PERSONAL CARE - 2.65%
Genetronics Biomedical Ltd., warrants, expire 1999 250,000 823 .70
(Canada)(1)
Nobel Biocare AB (Sweden) 45,100 649 .55
Aviron (USA)(1) 29,200 631 .53
NeoPath, Inc. (USA)(1) 120,000 480 .41
Pharmacyclics, Inc. (USA)(1) 20,000 374 .31
Grupo Casa Autrey, SA de CV (ADR) (Mexico)(1) 45,000 180 .15
TELECOMMUNICATIONS - 2.53%
SkyTel Communications Inc. (USA)(1) 50,000 1,016 .86
Tele Celular Sul Participacoes SA, ADR (Brazil) 50,000 941 .80
Rogers Cantel Mobile Communications Inc., Class B, 50,000 899 .76
restricted voting (Canada)(1)(2)
Western Telecom (France)(1) 25,000 134 .11
MACHINERY & ENGINEERING - .91%
JOT Automation Group Oyj (Finland) 21,000 828 .70
KCI Konecranes International Corp. (Finland) 6,800 248 .21
REAL ESTATE - .90%
Wiggins Group PLC (United Kingdom)(1) 3,000,000 744 .63
TBI PLC (United Kingdom) 204,100 320 .27
FOOD & HOUSEHOLD PRODUCTS - .89%
PT Indofood Sukses Makmur Tbk (Indonesia)(1)(2) 700,000 697 .59
Geest PLC (United Kingdom) 45,000 364 .30
BANKING - .83%
Laurentian Bank of Canada (Canada) 33,000 495 .42
Citizens Banking Corp. (USA) 16,200 482 .41
MISCELLANEOUS MATERIALS & COMMODITIES - .83%
SPARTECH Corp. (USA) 40,000 975 .83
CHEMICALS - .63%
Ionics, Inc. (USA)(1) 11,900 373 .32
Gurit-Heberlein AG (Switzerland) 130 365 .31
INSURANCE - .61%
Independent Insurance Group PLC (United Kingdom) 155,000 722 .61
METALS: NONFERROUS - .51%
Kaiser Aluminum Corp. (USA)(1) 68,500 599 .51
INDUSTRIAL COMPONENTS - .45%
Hayes Lemmerz International, Inc. (USA)(1) 16,000 528 .45
EQUITY COMMON TRUSTS - .40%
Atle AB, Class A (Sweden) 36,800 479 .40
BUILDING MATERIALS & COMPONENTS - .35%
Futuris Corp. Ltd. (Australia) 312,029 417 .35
AUTOMOBILES - .28%
Mahindra & Mahindra Ltd. (GDR) (India) 70,000 333 .28
MISCELLANEOUS - 4.69%
Other equity securitites in initial period of acquisition 5,53 4.69
TOTAL EQUITY SECURITIES (cost: $92,489,000) 101,073 85.56
Principal
Amount
SHORT-TERM SECURITIES (000)
CORPORATE SHORT-TERM NOTES - 11.04%
BMW US Capital Corp 4.79% due 7/12/1999 $2,700,000 2,685 2.27
Bayer Corp. 4.80% due 06/14/1999 (2) 2,000,000 1,996 1.69
Diageo Capital PLC 4.79% due 08/11/1999 (2) 2,000,000 1,980 1.68
DaimlerChrysler AG 4.89% due 08/30/1999 1,700,000 1,678 1.42
Den norske stats oljeselskap AS 4.83% due 06/18/1999 (2) 1,600,000 1,596 1.35
BP America Inc. 4.90% due 06/01/1999 1,400,000 1,400 1.19
Novartis Finance Corp.A26 4.95% due 06/03/1999 (2) 1,000,000 999 .85
Toyota Motor Credit Corp. 4.80% due 06/22/1999 700,000 698 .59
FEDERAL AGENCY DISCOUNT NOTES - 1.01%
Freddie Mac 5.30% due 7/14/1999 1,200,000 1,193 1.01
TOTAL SHORT-TERM SECURITIES (cost $14,227,000) 14,225 12.05
TOTA INVESTMENT SECURITIES (cost $106,716,000) 118,697 100.49
Excess of payables over cash and receivables (0.49)
NET ASSETS 118,121 100.00
(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.
ADR = American Depositary Receipts
See Notes to Financial Statements
Equity Securities appearing in the portfolio
since November 30, 1998
Applied Micro Circuits
Avex
CBT Group
Chieftain International
CinemaxX
Corporate Investments
DuPont Photomasks
Extreme Networks
Falck
Four Seasons Hotels
Genetronics Biomedical
Great Plains Software
Independent Insurance Group
Indofood Sukses Makmur
Inet Technologies
InfoCure
Ionics
JOT Automation Group
Kaiser Aluminum
Kinepolis Group
Lands' End
Louis Dreyfus Natural Gas
Mahindra & Mahindra
MDC Communications
MEDION
Mitchell Energy & Development
Momentum Business Applications
Mosaic Group
NeoPath
Nice Systems
Nobel Biocare
Orbotech
Peapod
Photobition Group
Power Integrations
Profit Recovery Group International
RadiSys
Rogers Cantel Mobile Communications
Sapiens International
Saville Systems Ireland
School Specialty
Shikoku Coca-Cola Bottling
Simeon Wines
SIPEX
SkyTel Communications
Station Casinos
Tele Celular Sul Participacoes
TranSwitch
Vintage Petroleum
Visio
Wiggins Group
Equity Securities eliminated from the portfolio
since November 30, 1998
Alvis
American Capital Strategies
ARIS
CESKE RADIOKOMUNIKACE
Cicorel Holding
Disco
Edify
GrandVision
Grupo Industrial Maseca
Hoyts Cinemas
ICB Shipping
Kalon Group
LandAmerica Financial Group
Level One Communications
Macromedia
Metro- Richelieu
Navigant International
QPL International Holdings
Renaissance Worldwide
Santa Isabel
Strayer Education
Towa
USWeb
Vantive
White Cap Industries
</TABLE>
<TABLE>
American Variable Insurance Series Growth Fund
Investment Portfolio, May 31, 1999 (unaudited)
<S> <C> <C> <C>
[pie chart]
EQUITY SECURITIES 94.88%
CASH &
EQUIVALENTS 5.12%
[end pie chart]
Percent
Of Net
Largest Individual Equity Securities Assets
- -------------------------------------------------------------------------------
Time Warner 4.63%
Viacom 4.61
AT&T - Liberty Media Group 4.01
Texas Instruments 2.69
Cendant 2.29
Solectron 2.01
Applied Materials 1.91
News Corp. 1.80
USA Networks 1.72
Cablevision Systems 1.68
Number of Market Percent
Shares Value Of Net
EQUITY SECURITIES (common and preferred stocks) (000)Assets
- -------------------------------------------- -------- -------- --------
BROADCASTING & PUBLISHING - 24.38%
Time Warner Inc. 4,705,150 $320,244 4.63
Viacom Inc., Class B (1) 7,400,000 284,900 4.61
Viacom Inc., Class A (1) 878,400 33,873
AT&T Corp.-- Liberty Media Group, (formerly Tele-Communications,
Inc. Liberty Media Group) Class A (1) 4,167,467 276,876 4.01
News Corp. Ltd., preferred (ADR) (Australia) 2,695,700 82,050 1.80
News Corp. Ltd. (ADR) 1,270,000 42,148
USA Networks, Inc.(1) 2,970,000 118,800 1.72
Cablevision Systems Corp., Class A (1) 1,468,600 115,836 1.68
Comcast Corp., Class A, special stock 3,000,000 115,500 1.67
Fox Entertainment Group, Inc., Class A (1) 3,350,000 85,425 1.24
United International Holdings, Inc., Class A (1) 1,180,000 84,960 1.23
Jones Intercable, Inc., Class A (1) 1,447,400 77,436 1.12
BHC Communications, Inc., Class A (1) 286,189 34,629 .50
Clear Channel Communications, Inc. (1) 115,731 7,646 .11
Chancellor Media Corp. (1) 85,700 4,355 .06
Knight-Ridder, Inc. 4,600 242 .00
ELECTRONIC COMPONENTS - 19.63%
Texas Instruments Inc. 1,700,000 185,937 2.69
Solectron Corp. (1) 2,542,000 139,174 2.01
Microchip Technology Inc. (1) 2,565,000 112,539 1.63
Altera Corp. (1) 3,000,000 104,438 1.51
Linear Technology Corp. 1,600,000 84,800 1.23
Intel Corp. 1,521,600 82,262 1.19
Corning Inc. 1,337,300 73,050 1.06
Jabil Circuit, Inc. (1) 1,460,000 70,445 1.02
Adaptec, Inc. (1) 2,236,000 69,037 1.00
Analog Devices, Inc. (1) 1,366,666 52,531 .76
Quantum Corp. (1) 2,600,000 51,512 .75
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(1) 14,000,000 50,460 .73
SCI Systems, Inc.(1) 1,213,326 50,353 .73
Micron Technology, Inc. (1) 1,191,300 45,195 .65
Sanmina Corp. (1) 600,000 44,991 .65
Maxim Integrated Products, Inc. (1) 819,100 43,771 .63
LSI Logic Corp. (1) 1,000,000 37,063 .54
Newbridge Networks Corp. (Canada)(1) 1,050,000 29,006 .42
Xilinx, Inc. (1) 400,000 17,775 .25
Seagate Technology (1) 200,000 6,038 .09
Motorola, Inc. 42,000 3,478 .05
Rogers Corp. (1) 87,900 2,505 .04
BUSINESS & PUBLIC SERVICES - 9.50%
Cendant Corp. (1) 8,564,800 157,913 2.29
Flextronics International Ltd. (USA-- 2,300,000 115,000 1.66
Incorporated in Singapore)(1)
Federal Express Corp. (1) 1,400,000 77,087 1.12
Quintiles Transnational Corp. (1) 1,600,000 65,000 .94
Waste Management, Inc. 1,200,000 63,450 .91
Allied Waste Industries, Inc. (1) 2,700,000 50,288 .73
Concord EFS, Inc. (1) 850,900 28,824 .42
Universal Health Services, Inc., Class B (1) 500,000 24,937 .36
Columbia/HCA Healthcare Corp. 1,000,000 23,563 .34
Robert Half International Inc.(1) 700,000 19,731 .29
Avery Dennison Corp. 200,000 11,975 .17
Electronic Data Systems Corp. 150,000 8,438 .12
Paychex, Inc. 187,500 5,555 .08
Snyder Communications, Inc. (1) 200,000 4,888 .07
DATA PROCESSING & REPRODUCTION - 6.99%
Computer Associates International, Inc. 1,541,300 72,923 1.06
Oracle Corp. (1) 2,900,000 71,956 1.04
PeopleSoft, Inc. (1) 3,700,000 59,894 .87
Microsoft Corp. (1) 500,000 40,344 .58
Storage Technology Corp. (1) 1,825,000 36,272 .52
Intuit Inc. (1) 393,300 32,005 .46
Gateway 2000, Inc. (1) 450,000 27,366 .40
Lexmark International Group, Inc., Class A (1) 200,000 27,225 .39
Autodesk, Inc. 920,000 25,415 .37
Silicon Graphics, Inc. (1) 1,761,000 21,792 .32
Rambus Inc. (1) 207,200 16,058 .23
Vantive Corp. (1) 1,304,156 14,183 .21
Mentor Graphics Corp. (1) 800,000 10,100 .15
Ascend Communications, Inc. (1) 100,000 9,268 .13
Compaq Computer Corp. 300,000 7,106 .10
3Com Corp. (1) 205,000 5,599 .08
Quanta Computer Inc. (Taiwan)(1) 280,000 5,265 .08
LEISURE & TOURISM - 4.66%
King World Productions, Inc. (1) 2,933,300 97,899 1.42
Starbucks Corp. (1) 2,100,000 77,437 1.12
Mirage Resorts, Inc. (1) 3,450,000 70,725 1.02
Carnival Corp. 1,184,800 48,577 .70
MGM Grand, Inc. (1) 650,000 27,300 .40
ELECTRONIC INSTRUMENTS - 4.03%
Applied Materials, Inc. (1) 2,400,000 132,000 1.91
KLA - Tencor Corp. (1) 1,675,000 76,212 1.10
PE Corporation-PE Biosystems Group 363,900 40,643 .59
(formerly Perkin-Elmer Corp.)
Teradyne, Inc.(1) 475,000 25,086 .37
ANTEC Corp. (1) 150,000 4,397 .06
HEALTH & PERSONAL CARE - 3.16%
Amgen Inc. (1) 400,000 25,300 .37
Guidant Corp. 500,000 25,000 .36
Gilead Sciences, Inc. (1) 500,000 21,812 .32
Genentech, Inc.(1) 225,000 19,702 .29
Sepracor Inc. (1) 290,400 18,513 .27
Cardinal Health, Inc. 277,700 16,766 .24
Forest Laboratories, Inc. (1) 300,000 14,287 .21
Millennium Pharmaceuticals, Inc. (1) 300,000 11,362 .16
Pfizer Inc 100,000 10,700 .15
Novoste Corp. (1) 400,000 10,200 .15
Warner-Lambert Co. 150,000 9,300 .13
BioChem Pharma Inc. (Canada)(1) 400,000 7,650 .11
ALZA Corp. (1) 176,166 6,287 .09
Biogen, Inc. (1) 50,000 5,456 .08
Inhale Therapeutic Systems, Inc.(1) (2) 200,000 5,300 .08
Omnicare, Inc. 150,000 3,591 .05
PE Corporation-Celera Genomics (formerly 181,950 3,093 .04
Perkin-Elmer Corp.) (1)
Guilford Pharmaceuticals, Inc. (1) 200,000 2,163 .03
Pharmacia & Upjohn, Inc. 36,250 2,010 .03
TELECOMMUNICATIONS - 2.73%
Teleglobe Inc. (Canada) 1,500,000 45,292 .66
Nextel Communications, Inc., Class A (1) 1,200,000 44,250 .64
NTT Mobile Communications Network, Inc. (Japan) 710 38,665 .56
MCI WorldCom, Inc. (1) 349,268 30,168 .44
AirTouch Communications (1) 250,000 25,125 .36
Paging Network, Inc. (1) 1,500,000 4,875 .07
TRANSPORTATION: AIRLINES - 2.25%
Southwest Airlines Co. 2,350,675 75,369 1.09
AMR Corp. (1) 1,100,000 71,569 1.04
Delta Air Lines, Inc. 150,000 8,606 .12
BANKING - 1.96%
Washington Mutual, Inc. 1,225,000 46,780 .68
Charter One Financial, Inc. 991,905 28,207 .41
BankBoston Corp. 581,680 27,557 .40
Wells Fargo & Co. 500,000 20,000 .28
M&T Bank Corp. 25,000 13,175 .19
MERCHANDISING - 1.81%
Consolidated Stores Corp. (1) 2,152,425 73,990 1.07
Limited Inc. 617,700 30,190 .44
Lowe's Companies, Inc. 400,000 20,775 .30
CHEMICALS - 1.79%
Monsanto Co. 1,905,000 79,058 1.14
Valspar Corp. 750,000 27,375 .40
Air Products and Chemicals, Inc. 415,300 17,027 .25
ELECTRICAL & ELECTRONICS - 1.63%
Nortel Networks Corp. (formerly Northern Telecom Ltd.) 390,000 29,250 .42
(Canada)(1)
Telefonaktiebolaget LM Ericsson, Class B (ADR) (Sweden) 940,000 25,321 .37
General Instrument Corp. (1) 600,000 23,213 .34
NEC Corp. (Japan) 2,000,000 22,079 .32
Nokia Corp., Class A (ADR) (Finland) 180,000 12,780 .18
ENERGY SOURCES - 1.40%
Murphy Oil Corp. 557,400 27,347 .40
Pogo Producing Co. 1,424,300 26,082 .38
Union Pacific Resources Group, Inc. 1,000,000 13,938 .19
Enterprise Oil PLC (United Kingdom) 1,700,000 10,885 .16
Talisman Energy Inc. (Canada) (1) 400,000 9,691 .14
TOTAL, Class B (ADR) (France)(1) 150,000 9,122 .13
TEXTILES & APPAREL - 1.16%
NIKE, Inc., Class B 1,300,000 79,219 1.16
FINANCIAL SERVICES - 1.06%
Household International, Inc. 700,000 30,363 .44
Capital One Financial Corp. 120,000 18,082 .26
Fannie Mae 225,000 15,300 .22
Providian Financial Corp. 100,000 9,594 .14
BEVERAGES & TOBACCO - 0.88%
Kita Kyushu Coca-Cola Bottling Co., Ltd. (Japan)(1) 522,800 25,412 .37
Philip Morris Companies Inc. 555,000 21,402 .30
PepsiCo, Inc. 400,000 14,325 .21
INSURANCE - 0.84%
XL Capital Ltd. (formerly EXEL Ltd.) (Bermuda-- 710,000 43,177 .62
Incorporated in the Cayman Islands)
MGIC Investment Corp. 320,000 15,400 .22
MISCELLANEOUS MATERIALS & COMMODITIES - 0.76%
Sealed Air Corp. (1) 850,000 52,806 .76
RECREATION & OTHER CONSUMER PRODUCTS - 0.63%
Hasbro, Inc. 1,531,500 43,839 .63
FOOD & HOUSEHOLD PRODUCTS - 0.62%
Dole Food Co., Inc. 750,000 23,016 .33
Keebler Foods Co. (1) 600,000 20,100 .29
UTILITIES: ELECTRIC & GAS - 0.24%
Questar Corp. 850,000 16,203 .24
ENERGY EQUIPMENT - 0.16%
Schlumberger Ltd. (Netherlands Antilles) 186,300 11,213 .16
TRANSPORTATION: RAIL & ROAD - 0.06%
Wisconsin Central Transportation Corp. (1) 200,000 3,950 .06
MACHINERY & ENGINEERING - 0.06%
Thermo Electron Corp. (1) 200,000 3,825 .06
MISCELLANEOUS - 2.49%
Other equity securities in initial period of acquisition 172,853 2.49
TOTAL EQUITY SECURITIES (cost:$4,066,680,000) 6,557,308 94.88
SHORT-TERM SECURITIES Principal Amount
(000)
CORPORATE SHORT-TERM NOTES - 4.90%
Procter & Gamble Co. 4.77%-4.82% due 6/11-7/8/1999 48,900 48,712 .71
BellSouth Telecommunications, Inc. 4.81% due 39,000 38,734 .56
7/21/1999 (2)
Lucent Technologies Inc. 4.78%-4.83% due 6/11-7/6/1999 35,500 35,396 .51
American Home Products Corp. 4.78%-4.85% due 35,755 35,349 .51
7/27-9/3/1999 (2)
IBM Credit Corp. 4.80% due 6/18-7/29/1999 32,300 32,130 .46
Eastman Kodak Co. 4.81%-4.84% due 6/4-9/28/1999 32,300 32,065 .46
Coca-Cola Co. 4.75%-4.82% due 6/7-8/17/1999 31,715 31,522 .46
International Lease Finance Corp. 4.78% due 29,300 29,032 .42
7/28-8/13/1999
U S WEST Communications, Inc. 4.81% due 6/8-6/18/1999 28,600 28,549 .41
SBC Communications Inc. 4.81%-4.85% due 27,850 27,699 .40
6/3-8/12/1999 (2)
FEDERAL AGENCY DISCOUNT NOTES - 0.20%
Freddie Mac 4.71% due 7/20/1999 13,500 13,411 .20
Non-U.S. Currency - 0.06%
New Taiwanese Dollar NT$132,520 4,065 .06
TOTAL SHORT-TERM SECURITIES (cost: $356,652,000) 356,664 5.16
TOTAL INVESTMENT SECURITIES (cost: $4,423,332,000) 6,913,972 100.04
Excess of payables over cash and receivables 3,114 .04
NET ASSETS $ 6,910,100.00%
(1) Non-income-producing security.
(2) Purchased in a private placement transaction; resale
to the public may require registration or sale only to
qualified institutional buyers.
Equity securities appearing in the portfolio
since November 30, 1998
ALZA
Amgen
Biogen
Clear Channel Communications
Corning
Genentech
Inhale Therapeutic Systems
Jabil Circuit
Kita Kyushu Coca-Cola Bottling
KLA-Tencor
Knight Ridder
Maxim Integrated Products
Millenium Pharmaceuticals
NEC
NTT Mobile Communications Network
Nextel Communications
Providian Financial
Quanta Computer
Questar
Quintiles Transnational
Rambus
Robert Half International
Sanmina
Snyder Communications
Starbucks
Storage Technology
Taiwan Semiconductor Manufacturing
Teleglobe
Teradyne
Union Pacific Resources
Equity securities eliminated from the portfolio
since November 30, 1998
ADC Telecommunications
Adelphia Communications
America Online
American International
APAC TeleServices
Baker Hughes
Cambridge Technology Partners (Massachusetts)
Ceridian
Circuit City Stores--Circuit City Group
Cox Communications
Data General
Engelhard
First Data
Gulfstream Aerospace
Jacor Communications
Johnson & Johnson
National Semiconductor
Nine West
Park Electrochemical
Praxair
Security Dynamics Technologies
SEQUUS Pharmaceuticals
Structural Dynamics Research
Tele-Communications, TCI
Tele-Communications, TCI Ventures
TeleTech Holdings
Transatlantic Holdings
Venator Group
Walt Disney
</TABLE>
<TABLE>
American Variable Insurance Series International Fund
Investment Portfolio, May 31, 1999 (Unaudited)
<S> <C> <C> <C>
[pie chart]
Percent of
Net Assets
--------
EUROPE 58.75%
ASIA/PACIFIC 24.31%
THE AMERICAS 10.55%
OTHER COUNTRIES 1.51%
CASH & EQUIVALENTS 4.88%
[end pie chart]
Largest Individual Equity Securities
Nokia 3.43%
AstraZeneca 2.93
Telefonos de Mexico 2.82
United Pan-Europe Communications 2.54
Deutsche Telekom 2.47
Telefonica 2.25
Orange 2.11
Mannesmann 1.83
Dixons Group 1.75
Mediaset 1.64
Market Percent
Number of Value Of Net
Stocks (common and preferred) Shares (000) Assets
- -------------------------------------------- -------- ----------------
TELECOMMUNICATIONS - 21.77%
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 1,032,000 $82,496 2.82%
Deutsche Telekom AG (Germany) 1,817,400 72,317 2.47
Telefonica, SA (Spain) 1,020,000 48,790
Telefonica, SA (ADR) (1) 118,605 17,109 2.25
Orange PLC (United Kingdom) (1) 4,440,000 61,551 2.11
Mannesmann AG (ADR) (Germany) 390,000 53,430 1.83
Telecom Italia SpA, nonconvertible savings (Italy) 7,884,165 42,568
Telecom Italia SpA 345,000 3,547 1.58
Swisscom AG (Switzerland) (1) 121,494 43,680 1.49
Vodafone Group PLC (United Kingdom) 1,200,000 22,859 .78
Cable & Wireless Communications PLC (United Kingdom) (1) 1,900,000 18,067 .62
Telecom Italia Mobile SpA (Italy) 2,000,000 11,741
Telecom Italia Mobile SpA, savings 1,312,800 4,408 .55
Philippine Long Distance Telephone Co. (Philippines) 205,000 5,787
Philippine Long Distance Telephone Co. (ADR) 154,000 4,447
Philippine Long Distance Telephone Co., convertible 80,000 4,000 .49
preferred (GDR)
Nippon Telegraph and Telephone Corp. (Japan) 1,400 13,610 .47
China Telecom (Hong Kong) Ltd. (ADR) (People's Republic 314,600 13,488 .46
of China) (1)
France Telecom SA (France) 165,000 12,616 .43
DDI Corp. (Japan) 2,600 11,953 .41
TELECEL - Comunicacoes Pessoais, SA (Portugal) 91,300 11,464 .39
Cia. de Telecomunicaciones de Chile SA (ADR)(Chile) 451,470 9,819 .34
Videsh Sanchar Nigam Ltd. (GDR) (India) 838,600 9,539 .33
Telefonica de Argentina SA, Class B (ADR) (Argentina) 280,000 9,065 .31
NTT Mobile Communications Network, Inc. (Japan) 163 8,877 .30
Korea Telecom Corp. (ADR) (South Korea) (1) 270,100 8,593 .30
Bayan Telecommunications Holdings Corp., convertible 150,000 7,500
preferred (Philippines) (1)(2)(3)
Bayan Telecommunications Holdings Corp. (1)(2)(3) 30,308 80
Bayan Telecommunications Holdings Corp., Class A (1)(2)(3) 20,279 54
Bayan Telecomunications Holdings Corp., Class B (1)(2)(3) 6,622 17 .26
SK Telecom Co., Ltd. (South Korea) 2,659 3,265
SK Telecom Co., Ltd. (ADR) 225,720 3,217 .22
Koninklijke PTT Nederland NV (Netherlands) 116,742 5,623 .19
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp. 1,600,000 3,263
(Indonesia)
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp. (ADR) 40,000 793 .14
Telstra Corp. Ltd. (Australia) 700,000 3,460 .12
Koor Industries Ltd. (ADR) (Israel) 152,700 3,293 .11
BROADCASTING & PUBLISHING - 12.93%
United Pan-Europe Communications NV (Netherlands) (1) 1,214,000 74,197 2.54
Mediaset SpA (Italy) 5,967,000 48,027 1.64
CANAL + (France) 124,418 35,917 1.23
Flextech PLC (United Kingdom) (1) 2,250,000 31,155 1.07
Seat Pagine Gialle SpA (Italy) 30,000,00 25,083 .86
Metropole Television (France) 106,000 21,338 .73
Television Francaise 1 SA (France) 80,000 19,142 .66
News Corp. Ltd. (ADR) (Australia) 362,000 12,014
News Corp. Ltd., preferred (ADR) 181,000 5,509
News Corp. Ltd., preferred 200,652 1,530 .65
Fuji Television Network Inc. (Japan) 3,733 18,822 .64
Television Broadcasts Ltd. (Hong Kong) 4,473,300 18,460 .63
ProSieben Media AG (Germany) 400,000 17,040 .58
Grupo Televisa, SA (ADR) (Mexico) (1) 360,000 15,053 .51
Publishing & Broadcasting Ltd. (Australia) 2,350,000 14,758 .50
Modern Times Group MTG AB, Class B (ADR) (Sweden) (1) 61,000 6,527
Modern Times Group MTG AB, Class A (1) 101,600 2,100 .30
Nippon Television Network Corp. (Japan) 21,000 7,266 .25
Societe Europeenne des Satellites, SA, Class A (FDR) (Luxembourg) 23,000 3,239 .11
Primedia Ltd., units (South Africa) 391,631 540
Primedia Ltd., units, Class N 179,635 238 .03
ELECTRICAL & ELECTRONICS - 6.28%
Nokia Corp. (Finland) 1,414,000 100,321 3.43
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 1,157,200 30,841
Telefonaktiebolaget LM Ericsson, Class B (ADR) 400,000 10,775 1.43
Nortel Networks Corp. (formerly Northern Telecom Ltd.) (Canada) (1) 300,000 22,500 .77
NEC Corp. (Japan) 1,354,000 14,948 .51
Premier Farnell PLC (United Kingdom) 1,000,000 4,234 .14
BANKING - 5.83%
ABN AMRO Holding NV (Netherlands) 1,419,718 31,385 1.07
Safra Republic Holdings SA (Luxembourg) 468,000 31,372 1.07
Banque Nationale de Paris (France) 275,000 23,115 .79
Bank of Nova Scotia (Canada) 975,000 21,141 .73
Westpac Banking Corp. (Australia) 2,400,238 16,421 .56
Development Bank Of Singapore Ltd. (Singapore) 1,151,000 11,880 .41
Bank of Scotland (United Kingdom) 707,000 9,629 .33
Barclays PLC (United Kingdom) 242,600 7,359 .25
Sakura Bank, Ltd. (Japan) 1,720,000 5,810 .20
Commonwealth Bank of Australia (Australia) 310,187 4,983 .17
ForeningsSparbanken AB, Class A (Sweden) 147,300 3,011 .10
Fuji Bank, Ltd. (Japan) 470,000 2,962 .10
Standard Chartered Bank (United Kingdom) 101,630 1,537 .05
BUSINESS & PUBLIC SERVICES - 4.86%
Adecco SA (Switzerland) (1) 50,000 26,115 .89
TNT Post Groep (Netherlands) 1,034,000 25,924 .89
Brambles Industries Ltd. (Australia) 925,682 24,674 .84
Rentokil Initial PLC (United Kingdom) 5,144,100 20,669 .70
Aegis Group PLC (United Kingdom) 7,350,000 14,354 .49
Check Point Software Technologies Ltd. (Israel) (1) 250,000 11,063 .38
Reuters Group PLC (United Kingdom) 776,533 10,737 .37
Vivendi SA (France) 80,802 5,968
Vivendi SA, warrants, expire 1999 (1) 80,802 83 .21
Zhejiang Expressway Co. Ltd., Class H (People's Republic of China) 17,262,00 2,515 .09
Metropolis Transactive Holdings Ltd. (South Africa) (1) 58,765 22 .00
ELECTRONIC COMPONENTS - 4.77%
Rohm Co., Ltd. (Japan) 340,000 44,342 1.52
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) (1) 8,450,000 30,456 1.04
Murata Manufacturing Co., Ltd. (Japan) 455,000 25,003 .85
Hoya Corp. (Japan) 275,000 13,979 .48
Hirose Electric Co., Ltd. (Japan) 111,000 9,492 .32
Hon Hai Precision Industry Co. Ltd. (Taiwan) (1) 1,400,000 8,245 .28
Samsung Electronics Co., Ltd. (South Korea) 68,559 4,771
Samsung Electronics Co., Ltd., warrants, expire 1999 (1) 5,611 60 .17
LG Semicon Co., Ltd. (South Korea) 473,925 3,218 .11
HEALTH & PERSONAL CARE - 4.53%
AstraZeneca PLC (formerly Astra AB) (United Kingdom)(1) 1,758,854 69,038
AstraZeneca PLC (formerly Zeneca Group PLC) 418,200 16,629 2.93
Novartis AG (Switzerland) 21,281 30,827 1.05
Elan Corp., PLC (ADR) (Ireland) (1) 166,400 8,986 .31
Fujisawa Pharmaceutical Co. Ltd. (Japan) 237,000 3,708 .13
SmithKline Beecham PLC (ADR) (United Kingdom) 50,000 3,281 .11
MERCHANDISING - 4.37%
Dixons Group PLC (United Kingdom) 2,900,100 51,173 1.75
Carrefour SA (France) 234,000 30,623 1.05
Cifra, SA de CV, Class C (Mexico) (1) 6,000,000 9,850
Cifra, SA de CV, Class V (1) 3,397,506 5,929 .54
Koninklijke Ahold NV (Netherlands) 437,436 15,222 .52
Kingfisher PLC (United Kingdom) 553,798 6,968 .24
Loblaw Companies Ltd. (Canada) 150,000 3,945 .13
Coles Myer Ltd. (Australia) 660,618 3,452 .12
Edgars Stores Ltd. (South Africa) 69,248 522 .02
AUTOMOBILES - 3.20%
Bayerische Motoren Werke AG (Germany) 62,400 39,858 1.36
Suzuki Motor Corp. (Japan) 1,700,000 24,033 .82
Honda Motor Co., Ltd. (Japan) 386,000 15,773 .54
Volvo AB, Class B (Sweden) 550,000 13,924 .48
FOOD & HOUSEHOLD PRODUCTS - 2.48%
Reckitt & Colman PLC (United Kingdom) 3,066,875 34,366 1.18
Nestle SA (Switzerland) 9,752 17,498 .60
Cadbury Schweppes PLC (United Kingdom) 2,000,000 13,599 .47
Groupe Danone (France) 25,000 6,866 .23
APPLIANCES & HOUSEHOLD DURABLES - 2.36%
Koninklijke Philips Electronics NV (Netherlands) 435,000 37,220 1.27
Sony Corp. (Japan) 340,000 31,821 1.09
ENERGY SOURCES - 2.17%
Broken Hill Proprietary Co. Ltd. (Australia) 3,554,900 36,465 1.25
Electrafina SA (Belgium) 79,000 8,876 .30
Elf Aquitaine (France) 40,000 5,776 .20
TOTAL, Class B (ADR) (France) (1) 75,000 4,561 .15
"Shell" Transport and Trading Co., PLC, New York 90,000 3,971 .14
registered (United Kingdom)
Woodside Petroleum Ltd. (Australia) 600,000 3,737 .13
MULTI-INDUSTRY - 2.13%
Orkla AS, Class A (Norway) 1,835,700 28,750 .98
Lend Lease Corp. Ltd. (Australia) 917,464 11,613 .40
Benpres Holdings Corp. (GDR) (Philippines) (1) 2,156,000 10,241 .35
Preussag AG (Germany) 160,029 8,241 .28
Invensys PLC (formerly Siebe PLC) (United Kingdom) 780,000 3,550 .12
RECREATION & OTHER CONSUMER PRODUCTS - 2.12%
EMI Group PLC (United Kingdom) 3,800,000 27,024 .93
Nintendo Co., Ltd. (Japan) 210,000 24,567 .84
Sony Music Entertainment (Japan) Inc. (Japan) 90,000 6,525 .22
Square Co., Ltd. (Japan) 125,000 3,924 .13
DATA PROCESSING & REPRODUCTION - 2.02%
Fujitsu Ltd. (Japan) 1,070,000 17,807 .61
Dassault Systems SA (France) 466,000 15,256 .52
ATI Technologies Inc. (Canada) (1) 1,000,000 14,116 .48
BCE Inc.(Canada) (1) 430,000 11,965 .41
BUILDING MATERIALS & COMPONENTS - 1.69%
Cemex, SA de CV, (Mexico) 4,769,224 21,175
Cemex, SA de CV, Class A 2,321,450 10,331 1.08
Holderbank Financiere Glaris Ltd. (Switzerland) 15,000 17,806 .61
AEROSPACE & MILITARY TECHNOLOGY - 1.48%
Bombardier Inc., Class B (Canada) 2,787,800 43,326 1.48
BEVERAGES & TOBACCO - 1.15%
South African Breweries PLC (United Kingdom) (1) 2,833,372 22,767 .78
Panamerican Beverages, Inc., Class A (Multinational 345,200 8,004 .27
- Incorporated in Panama)
Coca-Cola Amatil Ltd. (Australia) 403,748 1,719
Coca-Cola Beverages PLC (United Kingdom) (1) 635,937 1,176 .10
UTILITIES: ELECTRIC & GAS - 1.11%
Cia. Energetica de Minas Gerais - CEMIG, preferred nominative 826,600 17,255
Cia. Energetica de Minas Gerais - CEMIG, ordinary nominative 131,519,0 1,671 .65
Manila Electric Co., Class A (GDR) (Philippines) (1)(3) 510,000 6,610 .22
Cia. Paranaense de Energia - COPEL, Class B, preferred 480,373 3,603
nominative (ADR) (Brazil)
Cia. Paranaense de Energia - COPEL, ordinary nominative 328,207,8 1,613 .18
Scottish Power PLC (United Kingdom) 200,000 1,701 .06
MACHINERY & ENGINEERING - 1.11%
GKN PLC (United Kingdom) 1,531,605 24,936 .85
Valmet OY (Finland) 600,000 6,117 .21
Kvaerner AS, Class A (Norway) 80,000 1,319
Kvaerner AS, Class A, warrants, expire 1999 (1) 80,000 38 .05
FOREST PRODUCTS & PAPER - 0.95%
UPM-Kymmene Corp. (Finland) 945,000 27,625 .95
FINANCIAL SERVICES - 0.74%
Shohkoh Fund & Co., Ltd. (Japan) 39,000 21,720 .74
CONSTRUCTION & HOUSING - 0.69%
YTL Corp. Bhd. (Malaysia) (3) 10,000,00 20,263 .69
INSURANCE - 0.63%
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 1,624,006 13,141 .45
ING Groep NV (Netherlands) 100,000 5,332 .18
METALS: STEEL - 0.49%
Kawasaki Steel Corp. (Japan) 8,000,000 14,236 .49
GOLD MINES - 0.37%
Anglogold Ltd. (South Africa) 275,000 10,894 .37
INDUSTRIAL COMPONENTS - 0.32%
Bridgestone Corp. (Japan) 175,000 4,570 .16
Valeo (France) 50,000 4,073 .14
Minebea Co., Ltd. (Japan) 60,000 594 .02
REAL ESTATE - 0.18%
Cheung Kong (Holdings) Ltd. (Hong Kong) 500,000 4,062 .14
Mitsui Fudosan Co., Ltd. (Japan) 159,000 1,322 .04
LEISURE & TOURISM - 0.17%
Mandarin Oriental International Ltd. (Singapore) 6,911,218 5,114 .17
ENERGY EQUIPMENT - 0.17%
Petroleum Geo-Services ASA (ADR) (Norway) (1) 311,600 5,025 .17
TRANSPORTATION: SHIPPING - 0.16%
Stolt-Nielsen SA, Class B (ADR) (Multinational) 327,000 4,578 .16
METALS: NONFERROUS - 0.12%
Pechiney, Class A (France) 90,000 3,479 .12
MISCELLANEOUS--1.27%
Other stocks in inital period of acquisition 36,954 1.27
----------------
TOTAL STOCKS (COST: $1,996,163,000) 2,766,48 91.83
----------------
Principal
Amount
Convertible Debentures (000)
- -------------------------------------------- --------
BROADCASTING & PUBLISHING - 0.27%
United News & Media PLC 6.125% 2003 #4,500 7,834 .27
ELECTRONIC COMPONENTS - 0.12%
Acer Peripherals Inc. 1.25% 2006 (2) $2,680 3,672 .12
TELECOMMUNICATIONS - 0.08%
COLT Telecom Group PLC 2.00% 2005 DM 3000 2,368 .08
ENERGY SOURCES - 0.03%
Zhenhai Refining & Chemical Co. Ltd. 3.00% 2003 (2) $950 883 .03
----------------
TOTAL CONVERTIBLE DEBENTURES (cost: $12,810,000) 14,757 0.50
----------------
TOTAL EQUITY-TYPE SECURITIES (cost: $2,008,973,000) 2,781,23 92.32
----------------
SHORT-TERM SECURITIES
- --------------------------------------------
CORPORATE SHORT-TERM NOTES - 4.78%
BP America Inc. 4.79% due 7/12/1999 20,350 20,236 .69
Halifax PLC 4.78% due 6/21/1999 20,000 19,944 .68
DaimlerChrysler AG 4.82% due 7/19/1999 18,000 17,881 .62
Glaxo Wellcome PLC 4.82%-4.85% due 7/26-8/16/1999 (2) 16,000 15,830 .54
Commercial Credit Co. 4.80% due 6/3/1999 15,000 14,994 .51
Abbey National North America 4.81% due 7/15/1999 15,000 14,910 .51
Repsol International Finance BV 4.81% due 8/18-8/19/1999 14,000 13,845 .48
Coca-Cola Co. 4.77%-4.82% due 6/25-8/12/1999 13,300 13,198 .45
American Honda Finance Corp. 4.85% due 7/7/1999 8,900 8,856 .30
------------------
NON US CURRENCY - 0.08%
New Taiwanese Dollar NT$79,097 2,426 .08
------------------
TOTAL SHORT-TERM SECURITIES (Cost: $142,016,000) 142,120 4.86
------------------
TOTAL INVESTMENT SECURITIES (Cost: $2,150,989,000) 2,923,35 97.19
Excess of cash and receivables over payables 480 .02
------------------
NET ASSETS 2,923,83 100.00
(1) Non-income-producing security.
(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.
ADR = American Depository Receipts
FDR = Fiduciary Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
Stocks appearing in the portfolio since November 30, 1998
ABN AMRO Holding
Adecco
ATI Technologies
Banque Nationale de Paris
Barclays
BCE
Check Point Software Technologies
COLT Telecom
Development Bank of Singapore
Edgars Stores
Elan
Electrafina
Fujisaua Pharmaceutical
GKN
Hon Hai Precision Industry
Kawasaki Steel
Koor Industries
Korea Telecom
Loblaw
Manila Electric
Metropolis Transactive Holdings
NEC
Nippon Telegraph and Telephone
Preussag
Seat Pagine Gialle
Swissscom
Taiwan Semiconductor Manufacturing
United Pan-Europe Communications
Valeo
Vodafone
Volvo
Stocks eliminated from the portfolio since November 30, 1998
ADVANTEST
Alan Aluminium
Bayer
Centrais Geradoras do Sul do Brasil - GERASUL
Credicorp
English China Clays
Hachette Filipacchi Medias
Hong Kong Telecommunications
Imperial Oil
Inco
Kerry Group
Kerry Properties
Mazada Motor
Nippon Yusen
Olivetti
Panafon Hellenic Telecommunications
Raisio Group
Royal Bank of Scotland
San Miguel
Sasani
Seven Network
Siemens
SOFTBANK
Suez Lyonnaise des Eaux
Teck
Thames Water
TV Azteca
United Utilities
Valment
WMC
</TABLE>
<TABLE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1999 (Unaudited)
<S> <C>
[pie chart]
Equity Securities 88.25%
Cash & Equivalents 11.75%
</TABLE>
[end pie chart]
<TABLE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1999 (Unaudited)
<S> <C>
Largest Individual Equity Securities
Bristol-Myers Squibb 1.57%
Household International 1.41
Wells Fargo 1.27
Monsanto 1.25
Oracle 1.20
Allied Waste Industries 1.17
Viacom 1.17
GTE 1.11
Texas Instruments 1.11
Computer Associates International 1.09
</TABLE>
<TABLE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1999 (Unaudited)
<S> <C> <C> <C>
Market Percent
Number o Value Of Net
Equity securities (common and preferred stocks) Shares (000)Assets
- -------------------------------------------- -------- -------- --------
Data Processing & Reproduction - 8.44%
Oracle Corp. (1) 3,825,00 $94,908 1.20%
Computer Associates International, Inc. 1,825,00 86,345 1.09
Storage Technology Corp. (1) 3,900,00 77,513 .98
Xerox Corp. 1,371,80 77,078 .98
Microsoft Corp. (1) 850,000 68,584 .87
Lexmark International Group, Inc., Class A (1) 340,000 46,282 .59
Adobe Systems Inc. 600,000 44,475 .56
3Com Corp. (1) 1,500,00 40,969 .52
International Business Machines Corp. 240,000 27,915 .35
Cisco Systems, Inc. (1) 200,000 21,800 .28
Silicon Graphics, Inc.(1) 1,724,30 21,338 .27
Compaq Computer Corp. 900,000 21,319 .27
Autodesk, Inc. 700,000 19,337 .25
Gateway 2000, Inc. (1) 300,000 18,244 .23
Health & Personal Care - 6.80%
Bristol-Myers Squibb Co. 1,800,00 123,525 1.57
Guidant Corp. 1,200,00 60,000 .76
Kimberly-Clark Corp. 977,700 57,379 .73
AstraZeneca PLC (formerly Astra AB) (ADR) (United Kingdom) 1,311,70 51,648 .65
Warner-Lambert Co. 650,000 40,300 .51
Avon Products, Inc. 800,000 39,550 .50
Pfizer Inc 340,000 36,380 .46
Glaxo Wellcome PLC (ADR) (United Kingdom) 600,000 33,750 .43
Merck & Co., Inc. 500,000 33,750 .43
Schering-Plough Corp. 660,000 29,741 .38
Eli Lilly and Co. 225,000 16,074 .20
McKesson Corp. 300,000 10,219 .13
Johnson & Johnson 43,500 4,029 .05
Business & Public Services - 6.48%
Allied Waste Industries, Inc. (1) 4,973,90 92,639 1.17
Browning-Ferris Industries, Inc. 1,956,10 81,178 1.03
Electronic Data Systems Corp. 1,149,50 64,659 .82
Cendant Corp. (1) 3,300,00 60,844 .77
IKON Office Solutions, Inc. 4,050,00 56,447 .71
Waste Management, Inc. 725,000 38,334 .49
Pitney Bowes Inc. 532,200 33,928 .43
Hertz Corp., Class A 595,000 32,688 .41
United HealthCare Corp. 400,000 23,300 .30
Alexander & Baldwin, Inc. 1,020,00 23,077 .29
Manpower Inc. 200,000 4,600 .06
Banking - 5.75%
Wells Fargo & Co. 2,497,00 99,880 1.27
Bank of America Corp.(formerly BankAmerica Corp) 1,100,00 71,156 .90
First Union Corp. 1,540,20 70,946 .90
Washington Mutual Savings Bank 1,200,00 45,825 .58
Chase Manhattan Corp. 400,000 29,000 .37
Bank of New York Co., Inc. 800,000 28,600 .36
KeyCorp 800,000 27,800 .35
J.P. Morgan & Co. Inc. 150,000 20,897 .27
SunTrust Banks, Inc. 280,000 18,900 .24
Huntington Bancshares Inc. 459,679 15,916 .20
BANK ONE CORP. 183,012 10,352 .13
Bank of Tokyo-Mitsubishi, Ltd. (ADR) (Japan) 600,000 8,100 .10
Sakura Bank, Ltd. (ADR) (Japan) 200,000 6,600 .08
Energy Sources - 5.63%
Ultramar Diamond Shamrock Corp. 3,026,40 66,581 .84
Atlantic Richfield Co. 750,000 62,765 .80
Valero Energy Corp. (2) 2,809,00 56,355 .71
Phillips Petroleum Co. 950,000 49,816 .63
Kerr-McGee Corp. 911,250 42,373 .54
Texaco Inc. 626,900 41,062 .52
Noble Affiliates, Inc. 1,510,00 40,015 .51
Conoco Inc., Class A 1,374,00 37,270 .47
Murphy Oil Corp. 463,200 22,726 .29
Ashland Inc. 250,000 10,187 .13
Pioneer Natural Resources Co. 741,400 8,063 .10
BP Amoco PLC (formerly Amoco Corp.) (ADR) (United Kingdom) 66,166 7,088 .09
Merchandising - 5.54%
J.C. Penney Co., Inc. 1,650,00 85,284 1.08
Circuit City Stores, Inc. - Circuit City Group 1,175,00 84,380 1.07
Albertson's, Inc. 1,068,70 57,176 .72
American Stores Co. 1,400,00 46,200 .59
Limited Inc. 900,000 43,988 .56
AutoZone, Inc. (1) 1,300,00 37,619 .48
Dollar General Corp. 1,250,00 33,203 .42
Federated Department Stores, Inc. (1) 550,000 29,975 .38
Lowe's Companies, Inc. 250,000 12,984 .16
Circuit City Stores, Inc. - CarMax Group (1) 1,300,00 6,256 .08
Broadcasting & Publishing - 5.43%
Viacom Inc., Class B (1) 2,400,00 92,400 1.17
News Corp. Ltd. (ADR) (Australia) 1,100,00 36,506
News Corp. Ltd., preferred (ADR) 900,000 27,394 .81
AT&T Corp. - Liberty Media Group, Class A (formerly
Tele-Communications, Inc., Liberty Media Group) (1) 908,700 60,372 .77
Time Warner Inc. 850,000 57,853 .73
Harte-Hanks Communications, Inc. 1,845,60 41,987 .53
Media General, Inc., Class A 636,100 32,839 .42
Gannett Co., Inc. 385,400 27,845 .35
Knight-Ridder, Inc. 400,000 21,075 .27
Fox Entertainment Group, Inc., Class A (1) 700,000 17,850 .23
E.W. Scripps Co., Class A 226,000 10,650 .13
Comcast Corp., Class A, special stock 50,000 1,925 .02
Chemicals - 4.86%
Monsanto Co. 2,375,00 98,563 1.25
Millennium Chemicals Inc. 2,741,60 68,369 .87
Mallinckrodt Inc. 1,800,00 62,325 .79
International Flavors & Fragrances Inc. 1,100,00 45,237 .57
Praxair, Inc. 800,000 39,050 .49
PPG Industries, Inc. 450,000 27,309 .35
E.I. du Pont de Nemours and Co. 400,000 26,175 .33
Witco Corp. 500,000 8,750 .11
Air Products and Chemicals, Inc. 200,000 8,200 .10
Telecommunications - 3.43%
GTE Corp. 1,390,70 87,701 1.11
U S WEST Communications, Inc. 1,155,00 62,442 .79
AT&T Corp. 600,000 33,300 .42
Ameritech Corp. 400,000 26,325 .34
MCI WorldCom, Inc. (1) 295,365 25,512 .32
AirTouch Communications (1) 250,000 25,125 .32
SBC Communications Inc. 200,000 10,225 .13
Forest Products & Paper - 3.28%
Bowater Inc. 1,495,00 76,993 .98
Fort James Corp. 1,669,49 61,145 .77
Weyerhaeuser Co. 700,000 43,444 .55
International Paper Co. 700,000 35,000 .44
Sonoco Products Co. 800,000 20,000 .25
Georgia-Pacific Corp., Georgia-Pacific Group 150,000 12,966
Georgia-Pacific Corp., Timber Group 150,000 4,022 .22
Westvaco Corp. 187,500 5,355 .07
Utilities: Electric & Gas - 2.90%
Ameren Corp. 1,145,40 46,890 .59
GPU, Inc. 850,000 37,028 .47
Williams Companies, Inc. 622,000 32,227 .41
TECO Energy, Inc. 1,300,00 30,144 .38
DPL Inc. 1,600,00 28,900 .37
Duke Energy Corp. 350,000 21,110 .27
Consolidated Natural Gas Co. 350,000 20,803 .26
American Electric Power Co., Inc. 275,000 11,928 .15
Machinery & Engineering - 2.25%
Millipore Corp. 1,600,00 53,400 .68
Ingersoll-Rand Co. 525,000 33,436 .42
Deere & Co. 850,000 32,353 .41
New Holland NV (Netherlands) 1,700,00 25,394 .32
Caterpillar Inc. 350,000 19,206 .24
Pall Corp. 700,000 14,044 .18
Electronic Components - 2.25%
Texas Instruments Inc. 800,000 87,500 1.11
Corning Inc. 679,500 37,118 .47
Intel Corp. 530,000 28,653 .36
SCI Systems, Inc. (1) 400,000 16,600 .21
Quantum Corp. (1) 400,000 7,925 .10
Financial Services - 2.19%
Household International, Inc. 2,563,32 111,184 1.41
Capital One Financial Corp. 220,000 33,151 .42
FINOVA Group Inc. 360,000 17,213 .22
Associates First Capital Corp., Class A 277,464 11,376 .14
Beverages & Tobacco - 2.10%
RJR Nabisco Holdings Corp. 2,200,00 68,063 .86
Philip Morris Companies Inc. 1,305,00 50,324 .64
PepsiCo, Inc. 820,000 29,366 .37
UST Inc. 600,000 18,300 .23
Insurance - 1.81%
Allstate Corp. 1,100,00 40,081 .51
Aetna Inc. 375,000 34,055 .43
MGIC Investment Corp. 500,000 24,063 .30
American General Corp. 320,000 23,120 .29
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 2,000,00 16,184 .21
St. Paul Companies, Inc. 155,000 5,512 .07
Food & Household Products - 1.71%
Sara Lee Corp. 2,475,60 59,414 .75
General Mills, Inc. 525,000 42,197 .54
Colgate-Palmolive Co. 250,000 24,969 .32
Bestfoods 161,400 8,070 .10
Industrial Components - 1.43%
Eaton Corp. 520,000 45,337 .57
Federal-Mogul Corp. 856,600 39,511 .50
Dana Corp. 231,800 11,967 .15
Tower Automotive, Inc. (1) 400,000 9,150 .12
Genuine Parts Co. 200,000 6,737 .09
Electrical & Electronics - 1.40%
York International Corp. 1,902,90 80,278 1.02
Nokia Corp., Class A (ADR) (Finland) 230,000 16,330 .21
Telefonaktiebolaget LM Ericsson, Class B (ADR) (Sweden) 500,000 13,469 .17
Electronic Instruments - 1.31%
Applied Materials, Inc. (1) 1,000,00 55,000 .70
PE Corp.-PE Biosystems Group (formerly Perkin-Elmer Corp.) 300,000 33,506 .42
L-3 Communications Corp. (1) 300,000 14,775 .19
Aerospace & Military Technology - 1.30%
Sundstrand Corp. 400,000 27,675 .35
Raytheon Co., Class B 250,000 17,016
Raytheon Co., Class A 151,848 10,088 .34
United Technologies Corp. 400,000 24,825 .32
Boeing Co. 550,000 23,238 .29
Energy Equipment - 1.29%
Schlumberger Ltd. (Netherlands Antilles) 1,225,40 73,754 .94
Baker Hughes Inc. 892,090 27,766 .35
Multi-Industry - 1.19%
FMC Corp. (1) 550,000 36,403 .46
AlliedSignal Inc. 400,000 23,225 .29
Textron Inc. 200,000 17,813 .23
Loews Corp. 200,000 16,262 .21
Textiles & Apparel - 1.07%
NIKE, Inc., Class B 1,040,00 63,375 .80
VF Corp. 460,000 21,160 .27
Leisure & Tourism - 0.86%
Seagram Co. Ltd. (Canada) 1,300,00 67,519 .86
Real Estate - 0.71%
Equity Residential Properties Trust 600,000 28,763 .37
Boston Properties, Inc. 750,000 26,953 .34
Recreation & Other Consumer Products - 0.62%
Pennzoil-Quaker State Co. 3,554,60 49,320 .62
Metals: Nonferrous - 0.35%
Alcoa Inc. (formerly Aluminum Co. of America) 500,000 27,500 .35
Metals: Steel - 0.31%
Allegheny Teledyne Inc. 1,200,00 24,525 .31
Miscellaneous Materials & Commodities - 0.28%
Crown Cork & Seal Co., Inc. 700,000 21,962 .28
Transportation: Rail & Road - 0.22%
Norfolk Southern Corp. 540,000 17,685 .22
Automobiles - 0.14%
Nissan Motor Co., Ltd. (Japan) 2,500,00 10,957 .14
Miscellaneous - 4.92%
Other equity securities in initial period of acquisition 388,629 4.92
-----------------
TOTAL EQUITY SECURITIES ( cost: $5,352,065,000) 6,965,487 88.25
-----------------
Principa Market Percent
Amount Value Of Net
Short-Term Securities (000)Assets
-------- -------- --------
Corporate Short-Term Notes - 10.25%
Walt Disney Co. 4.75%-4.84% due 6/7-10/8/1999 74,332 73,773 .94
International Business Machines Corp. 4.80% due 6/18-7/29/1999 68,200 67,759 .86
American Home Products Corp. 4.78%-4.85% due 7/27-9/3/1999 (3) 64,100 63,377 .80
Associates First Capital Corp. 4.83%-4.84% due 6/1-7/23/1999 45,100 44,918 .57
Motorola, Inc. 4.79% due 7/1-7/2/1999 45,100 44,913 .57
Lucent Technologies Inc. 4.78%-4.81% due 6/11-7/8/1999 44,500 44,345 .56
Archer Daniels Midland Co. 4.84%-4.85% due 8/20-8/24/1999 44,300 43,781 .56
Eastman Kodak Co. 4.82%-4.84% due 6/7-9/28/1999 40,800 40,512 .51
A.I. Credit Corp. 4.77%-4.78% due 6/9-6/16/1999 40,200 40,137 .51
Xerox Corp. 4.77%-4.79% due 6/18-7/13/1999 38,700 38,526 .49
Commercial Credit Co. 4.79%-4.80% due 6/11-6/17/1999 34,200 34,133 .43
U S WEST Communications, Inc. 4.81% due 6/8/1999 33,400 33,364 .42
Coca-Cola Co. 4.76%-4.77% due 6/8-8/2/1999 32,650 32,409 .41
Gannett Co., Inc. 4.77%-4.83% due 6/9-6/11/1999 (3) 31,150 31,110 .39
Fortune Brands Inc. 4.78%-4.83% due 6/3-7/26/1999 (3) 30,500 30,355 .39
National Rural Utilities Cooperative Finance Corp. 4.76%-4.78%
due 6/21-7/12/1999 26,500 26,395 .33
SBC Communications Inc. 4.77%-4.81% due 6/3-8/12/1999 (3) 26,100 25,941 .33
International Lease Finance Corp. 4.78%-4.82% due 7/28-8/13/1999 25,713 25,493 .32
General Electric Capital Corp. 4.78% due 6/2/1999 24,400 24,394 .31
H.J. Heinz Co. 4.82% due 7/27/1999 23,900 23,717 .30
Chevron Corp. 4.78% due 6/8/1999 20,000 19,979 .25
Federal Agency Discount Notes - 1.41%
Fannie Mae 4.77%-4.81% due 6/3-8/20/1999 59,943 59,570 .75
Freddie Mac 4.70%-4.81% due 7/14-8/9/1999 52,500 52,105 .66
-----------------
TOTAL SHORT-TERM SECURITIES (cost: $921,148,000) 921,006 11.66
-----------------
TOTAL INVESTMENT SECURITIES (cost: $6,273,213,000) 7,886,493 99.91
Excess of cash and receivables over payables 6,812 .09
-----------------
NET ASSETS $7,893,305100.00%
==================
(1)Non-income-producing security.
(2)The fund owns 5.00% of the outstanding voting securities
of Valero Energy Corp., which represents an investment in an
affiliate as defined in the Investment Company Act of 1940.
(3)Purchased in a private placement transaction; resale
to the public may require registration or sale only
to qualified institutional buyers.
ADR = American Depositary Receipts
See Notes to Financial Statements
</TABLE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - May 31, 1999 (Unaudited)
Equity securities appearing in the portfolio
since November 30, 1998
Allied Waste Industries
American Electric Power
Autodesk
Consolidated Natural Gas
Dollar General
Eli Lilly
Knight Ridder
L-3 Communications
Lexmark International Group
Manpower
McKesson
Millipore
Nissan Motor
Sara Lee
Storage Technology
Telefonaktiebolaget LM Ericsson
United HealthCare
Equity securities eliminated from the portfolio
since November 30, 1998
AMP
Anheuser-Busch Companies
Avery Dennison
Chesapeake Energy
Dow Chemical
General Re
Greenfield Capital Trust
Gulfstream Aerospace
Hewlett-Packard
Houston Industries
Louisiana-Pacific
Marshall & Ilsley
Micron Technology
Morton International
Northern Telecom
Oryx Energy
Pennzoil
Parker Hannifin
Potash Corp. of Saskatchewan
Siemens
Telefonica
Transamerica
TRW
Union Camp
Venator Group
Walt Disney
<TABLE>
American Variable Insurance Series Asset Allocation Fund
Investment Portfolio, May 31, 1999
<S> <C> <C> <C>
[pie chart]
Percent
of Net
Assets
Equity Securities 62.48%
U.S. Government Bonds 15.74
Corporate Bonds 14.64
Non-U.S. Government Bonds 0.14
Cash & Equivalents 7.00
[end pie chart]
LARGEST INDIVIDUAL EQUITY SECURITIES
Raytheon 2.44
Bank of America 2.14
Household International 1.86
J.C. Penny 1.86
CenturyTel 1.77
Computer Assosicates International 1.76
Citigroup 1.71
Carnival 1.64
Limited 1.54
AstraZeneca 1.49
Number of Market Percent
Shares Value Of Net
STOCKS (common and preferred) (000) Assets
- -------------------------------------------- -------- ----------------
BANKING - 6.02%
Bank of America Corp. (formerly BankAmerica Corp.) 576,320 37,281 2.14
Citigroup Inc. 450,000 29,813 1.71
Washington Mutual Savings Bank 400,000 15,275 .88
KeyCorp 250,000 8,687 .50
Tokai Preferred Capital Co. LLC, Series A, 9.98% 5,000 4,611 .26
noncumulative preferred (Japan) (1)
BNP U.S. Funding LLC, Series A, 7.738% noncumulative 2,500 2,386 .14
preferred (1)
First Republic Capital Corp., Series A, 10.50% (1) (2) 2,250 2,250 .13
Fuji JGB Investment LLC, Series A, 9.87% 2,500 2,200 .12
noncumulative preferred (Japan) (1)
NB Capital Corp. 8.35% exchangeable depositary 60,000 1,586 .09
IBJ Preferred Capital Co. LLC, Series A, 8.79% 1,000 850 .05
noncumulative preferred (1)
ENERGY SOURCES - 5.71%
Royal Dutch Petroleum Co., New York registered (Netherlands) 360,000 20,362 1.17
Kerr-McGee Corp. 384,500 17,879 1.02
Atlantic Richfield Co. 200,000 16,738 .96
Chevron Corp. 150,000 13,903 .80
Murphy Oil Corp. 235,000 11,530 .66
Phillips Petroleum Co. 200,000 10,488 .60
Ultramar Diamond Shamrock Corp. 400,000 8,800 .50
HEALTH & PERSONAL CARE - 5.60%
AstraZeneca PLC (formerly Zeneca Group PLC) 660,000 25,988 1.49
(ADR) (United Kingdom)
Pfizer Inc 200,000 21,400 1.23
SmithKline Beecham PLC (ADR) (United Kingdom) 300,000 19,687 1.13
Warner-Lambert Co. 200,000 12,400 .71
Gillette Co. 216,960 11,065 .63
Eli Lilly and Co. 100,000 7,144 .41
AEROSPACE & MILITARY TECHNOLOGY - 5.07%
Raytheon Co., Class B 470,000 31,989
Raytheon Co., Class A 161,037 10,699 2.44
United Technologies Corp. 380,200 23,596 1.35
Sundstrand Corp. 200,000 13,837 .79
Boeing Co. 200,000 8,450 .49
DATA PROCESSING & REPRODUCTION- 4.18%
Computer Associates International, Inc. 650,000 30,753 1.76
Hewlett-Packard Co. 250,000 23,578 1.35
International Business Machines Corp. 160,000 18,610 1.07
MERCHANDISING - 3.80%
J.C. Penney Co., Inc. 628,000 32,460 1.86
Limited Inc. 550,000 26,881 1.54
Walgreen Co. 300,000 6,975 .40
CHEMICALS - 3.38%
Monsanto Co. 365,600 15,172 .87
Millennium Chemicals Inc. 600,000 14,963 .86
E.I. du Pont de Nemours and Co. 200,000 13,088 .75
PPG Industries, Inc. 200,000 12,137 .69
Air Products and Chemicals, Inc. 89,600 3,674 .21
ELECTRICAL & ELECTRONICS - 2.66%
York International Corp. 450,000 18,984 1.09
Nokia Corp., Class A (ADR) (Finland) 250,000 17,750 1.02
Emerson Electric Co. 150,000 9,581 .55
BUSINESS & PUBLIC SERVICES - 2.22%
Rentokil Initial PLC (ADR) (United Kingdom) 500,000 20,250 1.16
Pitney Bowes Inc. 275,000 17,531 1.00
EarthWatch Inc. 7.00%, Series B, convertible 285,714 1,000 .06
preferred (2)(3)(4)
TELECOMMUNICATIONS - 2.22%
CenturyTel, Inc. (formerly Century Telephone 804,375 30,818 1.77
Enterprises, Inc.)
COLT Telecom Group PLC, warrants, expire 2006 3,750 2,355 .13
(United Kingdom) (1) (2)
Crown Castle International Corp. 12.75% 2,063 2,188 .13
exchangeable preferred (1) (2) (3)
Nextel Communications, Inc., Series D, 13.00% 1,557 1,667 .10
exchangeable preferred (2) (3)
McCaw International, Ltd., (owned by Nextel 2,000 5
Communications, Inc.), warrants, expire 2007 (1) (2)
Omnipoint Corp. 7.00% convertible preferred (1) 40,000 1,400 .08
Esat Telecom Group PLC, warrants, expire 2007 3,500 243 .01
(Ireland) (1) (2) (4)
Loral Space & Communications Ltd., warrants, 1,250 13 .00
exprie 2007 (Bermuda) (2)
Conecel Holdings Ltd., Class B, warrants, 77,700 8 .00
expire 2000 (Ecuador) (1) (2) (4)
Iridium LLC, warrants, expire 2005 (1)(2) 1,500 2 .00
AUTOMOBILES - 2.10%
General Motors Corp. 300,000 20,700 1.19
Volvo AB, Class B (Sweden) 625,000 15,823 .91
INSURANCE - 1.89%
CIGNA Corp. 150,000 13,987 .80
American General Corp. 176,700 12,767 .73
Aon Corp. 145,300 6,248 .36
FINANCIAL SERVICES - 1.86%
Household International, Inc. 750,000 32,531 1.86
BEVERAGES & TOBACCO - 1.77%
PepsiCo, Inc. 520,000 18,622 1.07
UST Corp. 400,000 12,200 .70
LEISURE & TOURISM - 1.64%
Carnival Corp. 700,000 28,700 1.64
Discovery Zone, Inc.(2) (4) 2,940 15
Discovery Zone, Inc., warrants, expire 2007 (2) (4) 326 .00
MACHINERY & ENGINEERING - 1.41%
Millipore Corp. 450,000 15,019 .86
Deere & Co. 250,000 9,516 .55
FOREST PRODUCTS & PAPER - 1.36%
Weyerhaeuser Co. 200,000 12,413 .71
Sonoco Products Co. 450,000 11,250 .65
INDUSTRIAL COMPONENTS - 1.32%
Dana Corp. 250,000 12,906 .74
Genuine Parts Co. 300,000 10,106 .58
MULTI INDUSTRY - 1.16%
Textron Inc. 120,000 10,687 .61
Dover Corp. 200,000 7,537 .43
Swire Pacific Capital Ltd. 8.84% cumulative
guaranteed perpetual capital securities (Hong Kong) (1) 100,000 2,075 .12
FOOD & HOUSEHOLD PRODUCTS - 0.92%
General Mills, Inc. 200,000 16,075 .92
BROADCASTING & PUBLISHING - 0.91%
New York Times Co., Class A 400,000 13,650 .78
Adelphia Communications Corp., Series B, 13.00% 20,000 2,323 .13
exchangeable preferred (2)
ENERGY EQUIPMENT - 0.86%
Schlumberger Ltd. (Netherlands Antilles) 250,000 15,047 .86
ELECTRONIC COMPONENTS - 0.78%
Corning Inc. 250,000 13,656 .78
UTILITIES: ELECTRIC & GAS - 0.44%
Central and South West Corp. 300,000 7,725 .44
METALS: STEEL - 0.35%
Allegheny Teledyne Inc. 300,000 6,131 .35
REAL ESTATE - 0.07%
CarrAmerica Realty Corp., Series B, 8.57% 50,000 1,178 .07
redeemable preferred
RECREATION & OTHER CONSUMER PRODUCTS - 0.00%
V2 Music Holdings, warrants, expire 2008 1,250 --- .00
(United Kingdom) (1) (2)
------------------
TOTAL STOCKS (cost: $758,633,000) 1,041,86 59.70
------------------
Principal Market Percent
Amount Value Of Net
Convertible Debentures (000) (000) Assets
- -------------------------------------------- -------- ----------------
INDUSTRIALS & SERVICES - 0.67%
Bell Atlantic Financial Services, Inc., 4,000 4,125
4.25% senior exchangeable notes, 2005 (1)
Bell Atlantic Financial Services, Inc. 5.75%, 2003 (1) 3,500 3,596 .44
Sunglass Hut International, Inc. 5.25% 2003 3,375 2,852 .16
Advanced Micro Devices, Inc. 6.00% convertible 1,500 1,200 .07
subordinated notes 2005
------------------
TOTAL CONVERTIBLE DEBENTURES (cost $12,020,000) 11,773 .67
------------------
MISCELLANEOUS - 2.11%
Other equity securities in initial period of acquisition 36,813 2.11
------------------
TOTAL EQUITY SECURITIES (cost $770,653,000) 1,090,453 62.48
------------------
Bonds & Notes
- --------------------------------------------
FINANCIAL SERVICES - 2.12%
Capital One Bank:
7.35% 2000 5,000 5,056
6.375% 2003 2,500 2,463 .43
AT&T Capital Corp.:
6.60% 2005 2,000 1,942
6.875% 2001 1,500 1,504 .20
GS Escrow Corp. 7.125% 2005 3,000 2,897 .17
Capital One Financial Corp. 7.125% 2008 3,000 2,846 .16
Ocwen Financial Corp. 11.875% 2003 2,850 2,736 .16
Pan Pacific Industrial Investments PLC 0% 2007 (1) 6,000 2,690 .15
BHP Finance 6.75% 2013 2,680 2,508 .14
Providian National Bank 6.65% 2004 2,500 2,458 .14
MBNA America Bank, NA 6.75% 2008 2,500 2,400 .14
Household Finance Corp. 6.40% 2008 2,250 2,173 .13
PDVSA Finance Ltd. 7.40% 2016 2,250 1,749 .10
Wharf International Finance Ltd. 7.625% 2007 1,750 1,556 .09
Capital One Capital I 6.545% 2027 (1) (5) 1,250 1,092 .06
Ford Motor Credit Co. 5.80% 2009 1,000 928 .05
DIVERSIFIED MEDIA, CABLE TELEVISION &
TELECOMMUNICATIONS - 2.01%
Time Warner Inc.:
9.125% 2013 4,000 4,691
7.25% 2017 1,500 1,495 .35
Cable & Wireless Communications PLC:
6.625% 2005 3,300 3,252
6.75% 2008 2,000 1,949 .30
Fox/Liberty Networks, LLC 0%/9.75% 2007 (6) 4,000 3,210 .18
Comcast Cable Communications, Inc. 8.875% 2017 2,500 2,881 .17
TCI Communications, Inc. 8.75% 2015 2,000 2,328 .13
Telemundo Holdings, Inc. 0%11.50% 2008 (6) 4,000 2,160 .12
Telesystem International Wireless Inc. 0%/13.25% 2007 (6) 3,700 2,035 .12
Hearst-Argyle Television, Inc. 7.50% 2027 2,000 1,969 .11
Sprint Capital Corp. 6.875% 2028 2,000 1,874 .11
CEI Citicorp Holdings SA 11.25% 2007 (1) 2,500 1,689 .10
U S WEST Capital Funding, Inc. 6.50% 2018 1,800 1,644 .09
Cox Communications, Inc. 6.40% 2008 1,500 1,446 .08
CSC Holdings, Inc. 8.125% 2009 1,250 1,294 .07
Conecel Holdings Ltd.:
14.0% 2002 1,000 320
Series A, 14.00% 2000 (1) (4) 3,000 300 .04
V2 Music Holdings, units, 0%/14.00% 2008 (1) (6) 1,250 400 .02
Iridium LLC, Series A, 13.00% 2005 1,500 289 .02
BANKING & THRIFTS - 1.66%
National Westminster Bank PLC:
7.75% 2049 3,200 3,245
9.45% 2001 1,000 1,061 .25
Imperial Capital Trust I, Series B, 9.98% 2026 2,950 2,918 .17
MBNA Corp.:
Capital A, Series A, 8.278% 2026 2,010 1,885
Capital B, Series B, 5.795% 2027 (5) 1,000 858 .16
BANK ONE CORP. 5.625% 2004 2,500 2,405 .14
Chase Capital II, Series B, 5.495% 2027 (5) 2,500 2,364 .13
Bankers Trust Corp. 6.70% 2007 2,080 2,032 .12
Chevy Chase Bank, FSB 9.25% 2008 2,000 2,030 .11
Advanta Capital Trust I 8.99% 2026 3,000 2,010 .11
Banque Nationale de Paris 5.625% 2049 2,000 1,922 .11
Fleet Capital Trust 6.000% 2028 (5) 1,500 1,507 .09
Bank of America Corp. 5.875% 2009 1,500 1,405 .08
Chase Capital II 7.67% 2026 1,000 987 .06
Abbey National PLC 6.70% 2049 1,000 963 .05
Komercni Banka AS 9.00%/10.75% 2008 (1) (6) 1,000 828 .05
J.P. Morgan & Co. Inc., Series A, 6.00% 2009 510 478 .03
TRANSPORTATION - 1.19%
Continental Airlines, Inc.:
Series 1996-2C, 10.22% 2014 (7) 2,092 2,289
Series 1997-4A, 6.90% 2018 1,500 1,491
Series 1998-3C, 7.25% 2005 1,500 1,466 .30
United Air Lines, Inc.:
Series 1996-A2, 7.87% 2019 (5) 2,500 2,429
Series 1995-A1, 9.02% 2012 (7) 1,356 1,459
9.00% 2003 500 536 .25
Delta Air Lines, Inc. pass-through trust:
Series 1993-A2, 10.50% 2016 (7) 2,000 2,477
Series 1992-A2, 9.20% 2014 (7) 1,000 1,140 .21
Airplanes Pass Through Trust, Class 1-C, 8.15% 2019 (7) 2,932 2,929 .17
Jet Equipment Trust, Series 1995-B, 7.83% 2015 (1) (7) 2,271 2,300 .13
USAir, Inc., Series 1996-B, 7.50% 2009 (7) 2,298 2,249 .13
ENERGY & RELATED COMPANIES - 1.09%
Oryx Energy Co.:
9.50% 1999 3,000 3,037
8.375% 2004 2,500 2,626
10.00% 1999 1,000 1,001 .38
Union Pacific Resources Group, Inc. 7.30% 2009 3,100 3,025 .17
USX Corp. 9.125% 2013 2,500 2,833 .16
OXYMAR 7.50% 2016 (1) 2,500 2,104 .12
Norcen Energy Resources Ltd. 7.375% 2006 2,000 1,969 .11
Conoco Inc. 6.35% 2009 1,600 1,553 .09
Cross Timbers Oil Co. 8.75% 2009 1,000 955 .06
CELLULAR, PAGING & WIRELESS COMMUNICATION - 1.01%
Nextel Communications, Inc.:
0%/9.95% 2008 (6) 4,500 2,993
0%/9.75% 2007 (6) 2,000 1,360
0%/10.65% 2007 (6) 1,500 1,050
McCaw International, Ltd., (owned by Nextel 6,000 3,660 .52
Communications, Inc.), 0%/13.00% 2007 (6)
Clearnet Communications Inc.:
0%/11.75% 2007 (6) 5,250 2,387
0%/10.40% 2008 (6) 4,000 1,574
0%/10.125% 2009 (6) 1,250 656 .27
Esat Telecom Group PLC 0%/12.50% 2007 (6) 3,500 2,503 .14
Omnipoint Corp. 11.625% 2006 1,500 1,380 .08
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED) (7) - 0.69%
DLJ Mortgage Acceptance Corp., Series 1996-CF2, 3,000 3,099 .18
Class A1, 7.29% 2021 (1)
Morgan Stanley Capital I, Inc., Series 1998-HF2, 3,000 2,943 .17
Class A-2, 6.48% 2030
GS Mortgage Securities Corp. II, Series 1998-C1, 2,500 2,374 .13
Class D, 7.24% 2030
L.A. Arena Funding, LLC 7.66% 2026 (1) 2,000 1,912 .11
GMAC Commercial Mortgage Securities, Inc., 1,726 1,736 .10
Series 1997-C1, Class A-1, 6.83% 2003
MERCHANDISING - 0.61%
J.C. PENNEY Co., Inc.:
8.25% 2022 3,150 3,181
7.95% 2017 2,000 2,064
7.60% 2007 2,000 2,044 .42
Dayton Hudson Corp. 8.50% 2022 2,500 2,703 .15
Venator Group, Inc., Series A, 7.00% 2002 750 647 .04
ASSET-BACKED OBLIGATIONS (7) - 0.53%
Sears Credit Account Master Trust II, Series 1998-2, 3,250 3,112 .18
Class A, 5.25% 2008
Hitachi, Ltd. Series 1999-1, Class A, 8.13% 2004 2,500 2,521 .14
First Consumer Master Trust, Series 1999-A, Class A, 2,250 2,166 .12
5.80% 2005
FIRSTPLUS Home Loan Owner Trust, Series 1997-1, 1,500 1,504 .09
Class A-6, 6.95% 2015
REAL ESTATE - 0.53%
SocGen Real Estate Co. LLC, Series A, 7.64%/8.40% 5,700 5,469 .31
preferred (6)
Irvine Co., Series A, 7.46% 2006 (1) (4) 1,500 1,434 .08
Irvine Apartment Communities, LP 7.00% 2007 1,500 1,374 .08
EOP Operating LP 7.25% 2018 1,000 935 .06
UTILITIES: ELECTRIC & GAS - 0.49%
Israel Electric Corp. Ltd.:
7.25% 2006 (1) 2,500 2,411
7.70% 2018 (1) 1,750 1,621
7.75% 2027 (1) 1,500 1,360 .31
Commonwealth Edison Co., Series 75, 9.875% 2020 1,500 1,725 .10
Energen Corp., Series B, 7.125% 2028 1,500 1,393 .08
FOREST PRODUCTS & PAPER - 0.48%
Fort James Corp. 6.625% 2004 2,500 2,493 .14
Container Corp. of America 9.75% 2003 2,000 2,070 .12
Scotia Pacific Co. LLC, Class A-2, 7.11% 2028 2,000 1,643 .09
Pacifica Papers Inc. 10.00% 2009 1,500 1,545 .09
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1,000 630 .04
BROADCASTING & PUBLISHING - 0.35%
Charter Communications Holdings, LLC 0%/9.92% 2011 (1) (6) 3,250 1,999 .12
Ziff-Davis Inc. 8.50% 2008 1,500 1,448 .08
RBS Participacoes SA 11.00% 2007 (1) 2,000 1,325 .08
News America Holdings Inc. 7.43% 2026 1,250 1,270 .07
FOOD & HOUSEHOLD PRODUCTS - 0.32%
Home Products International, Inc. 9.625% 2008 3,000 2,820 .16
Fage Dairy Industry SA 9.00% 2007 2,000 1,825 .11
Gruma, SA de CV 7.625% 2007 1,000 900 .05
METALS: NONFERROUS - 0.30%
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 2,750 1,985 .11
Inco Ltd. 9.60% 2022 2,000 1,942 .11
Doe Run Resources Corp. 11.354% 2003 (5) 1,500 1,290 .08
HEALTH & PERSONAL CARE - 0.29%
Allegiance Corp. 7.00% 2026 3,000 3,032 .18
Integrated Health Services, Inc., Series A:
9.25% 2008 1,750 1,138
9.50% 2007 1,250 819 .11
CABLE & TELEPHONE IN THE UNITED KINGDOM - 0.25%
COLT Telecom Group PLC 0%/12.00% 2006 (6) 3,750 3,197 .18
NTL Inc. 11.50% 2008 1,000 1,110 .07
ELECTRICAL & ELECTRONICS - 0.23%
Koninklijke Philips Electronics NV 7.20% 2026 2,000 2,087 .12
Hyundai Semiconductor America, Inc. 8.625% 2007 2,400 1,928 .11
LEISURE & TOURISM - 0.22%
Royal Caribbean Cruises Ltd. 7.00% 2007 3,000 2,934 .17
Horseshoe Gaming Holdings Corp. 8.625% 2009 (1) 1,000 970 .05
BUSINESS & PUBLIC SERVICES - 0.12%
Cendant Corp. 7.75% 2003 2,000 2,028 .12
MANUFACTURING & MATERIALS - 0.10%
Owens-Illinois, Inc. 8.10% 2007 1,750 1,771 .10
APPLIANCES & HOUSEHOLD DURABLES - 0.05%
Samsung Electronics Co., Ltd. 7.45% 2002 (1) 1,000 959 .05
NON-U.S. GOVERNMENTS & GOVERNMENTAL
AUTHORITIES - 0.14%
Canadian Government 4.55% 2026 (8) 2,000 1,466 .08
Mendoza (Province of) 10.00% 2007 (1) 1,300 972 .06
FEDERAL AGENCY OBLIGATIONS - MORTGAGE
PASS-THROUGHS (7) - 3.73%
Fannie Mae:
6.00% 2013-2014 18,735 18,278
6.50% 2013 9,179 9,138
8.50% 2024 3,679 3,861
7.00% 2009 1,035 1,050
9.00% 2019 272 290 1.87
Government National Mortgage Assn.:
6.50% 2029 9,988 9,741
8.00% 2020-2023 9,308 9,723
7.00% 2022-2024 9,535 9,546
8.50% 2022-2029 2,701 2,856
10.00% 2019 625 674 1.86
FEDERAL AGENCY OBLIGATIONS - OTHER - 0.39%
Freddie Mac 5.75% 2009 7,000 6,741 .39
U.S. TREASURY OBLIGATIONS - 11.62%
6.50% 2002-2005 50,000 51,464
7.25% 2004-2016 44,500 48,708
7.00% 2006 25,000 26,699
10.375% 2009-2012 14,000 17,861
3.682% 2002 (8) 10,000 10,290
7.125% 2000 10,000 10,150
8.75% 2000-2008 8,000 8,687
6.625% 2007 7,000 7,358
7.50% 2016 5,000 5,729
8.25% 2005 5,000 5,123
11.875% 2003 2,500 3,091
11.125% 2003 2,000 2,395
7.625% 2022 2,000 2,374
9.125% 2009 1,500 1,705
11.75% 2010 500 639
10.75% 2003 500 588 11.62
------------------
TOTAL BONDS & NOTES (cost: $549,744,000) 532,6366 30.52
------------------
Principal Market Percent
Amount Value Of Net
Short Term Securities (000) Assets
- -------------------------------------------- -------- ----------------
CORPORATE SHORT-TERM NOTES - 6.18%
Eastman Kodak Co. 4.78%-4.84% due 8/16-9/28/1999 25,479 25,124 1.44
Commercial Credit Co. 4.79%-4.80% due 6/4-6/17/1999 18,870 18,843 1.08
A. I. Credit Corp. 4.78%-4.80% due 6/2-6/16/1999 16,900 16,879 .97
Procter & Gamble Co. 4.82% due 7/8/1999 15,700 15,621 .89
National Rural Utilities Cooperative Finance Corp. 14,653 14,541 .83
4.76%-4.79% due 6/11-8/5/1999
International Lease Finance Corp. 4.78%-4.80% 14,300 14,153 .81
due 8/11-8/13/1999
General Electric Capital Corp. 4.93% due 6/1/1999 2,800 2,800 .16
FEDERAL AGENCY DISCOUNT NOES - 0.58%
Fannie Mae 4.73%-4.81% due 08/6-8/20/1999 10,200 10,101 .58
------------------
TOTAL SHORT-TERM SECURITIES (cost: $118,097,000) 118,062 6.76
------------------
TOTAL INVESTMENT SECURITIES (cost $1,438,494,000) 1,741,151 99.76
Excess of cash and receivables over payables 4,229 .24
------------------
NET ASSETS $1,745,380 100.00%
==================
(1) Purchased in a private placement transaction;
resale to the public may require registration or sale
only to qualified institutional buyers.
(2) Non-income-producing security.
(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) Coupon rate changes periodically.
(6) Step bond; coupon rate will increase at a later date.
(7) Pass-through securities backed by a pool of
mortgages or other loans on which principal payments
are periodically made. Therefore, the effective
maturity 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.
ADR=American Depositary Receipts
See Notes to Financial Statements
Equity-type securities appearing in the portfolio
since November 30, 1998
AON
Central and South West
Computer Associates International
Corning
Crown Castle International
Dover
Earthwatch
Eli Lilly
Emerson Electric
First Republic Capital
Hewlett-Packard
Millipore
NB Capital
New York Times
Pitney Bowes
Schlumberger
Sundstrand
Volvo
Equity securities eliminated from the portfolio
since November 30, 1998
Alexander & Baldwin
Amoco
AMP
Avery Dennison
First Union
General Re
Georgia-Pacific
Hubbell
Morton International
Oryx Energy
Pioneer Natural Resources
Praxair
Reuters Group
St. Paul Companies
Telefonica
Union Camp
</TABLE>
<TABLE>
American Variable Insurance Series Bond Fund
Investment Portfolio, May 31, 1999 (unaudited)
<S> <C> <C> <C>
[pie chart]
Corporate Bonds 61.01%
U.S. Government Bonds 18.97
Equity Securities 8.32
Non-U.S. Government Bonds 3.33
Cash & Equivalents 8.37
[end pie chart]
Principal Market Percent
Amount Value Of Net
BONDS & NOTES (000) (000) Assets
- -------------------------------------------- -------- -------- --------
CELLULAR, PAGING & WIRELESS COMMUNICATIONS - 8.41%
Nextel Communications, Inc.:
0%/9.95% 2008 (1) $2,625 $1,746
9.75% 2004 1,000 1,030
0%/9.75% 2007 (1) 1,500 1,020
12.00% 2008 (2) 500 570
0%/10.65% 2007 (1) 750 525
0%/12.125% 2008 (1) 1,000 510
McCaw International, Ltd. (owned by NEXTEL
Communications, Inc.) 0%/13.00% 2007 (1) 2,125 1,296 2.79%
Cable & Wireless Communications PLC:
6.625% 2005 3,660 3,607
6.75% 2008 500 487 1.70
Clearnet Communications Inc.:
0%/11.75% 2007 (1) C$2,658 1,208
0%/10.40% 2008 (1) 3,000 1,181
0%/10.125% 2009 (1) $ 500 262 1.10
Esat Telecom Group PLC 0%/12.50% 2007 (1) 2,000 1,430 .59
Omnipoint Corp. 11.625% 2006 1,500 1,380 .58
NEXTLINK Communications, Inc.:
0%/12.25% 2009 (1,2) 1,500 795
9.625% 2007 500 473 .53
Crown Castle International Corp. 0%/10.625% 2007 (1) 1,000 700 .29
PageMart Wireless, Inc.:
0%/15.00% 2005 (1) 500 412
0%/11.25% 2008 (1) 750 218 .26
Cellular Communications of Puerto Rico, Inc. 10.00% 2007 500 538 .22
American Cellular Corp. 10.50% 2008 500 517 .22
Globalstar, LP 11.375% 2004 500 315 .13
FINANCIAL SERVICES - 7.22%
Capital One Bank:
7.125% 2008 1,000 949
7.15% 2006 810 813
6.375% 2003 500 493
6.545% 2027 (2,3) 250 218 1.03
J.P. Morgan & Co. Inc.:
5.302% 2012 (3,4) 2,000 1,808
6.00% 2009 340 319 .89
AT&T Capital Corp.:
6.875% 2001 1,000 1,003
6.60% 2005 1,000 971 .82
Lindsey Morden Group Inc. 7.00% 2008 (2) C$2,750 1,755 .73
MBNA Capital:
Series A, 8.278% 2026 $1,000 938
6.75% 2008 500 480 .59
Toyota Motor Credit Corp. 6.00% 2003 1,000 992 .41
Abbey National PLC 6.70% 2049 970 934 .39
Ocwen Financial Corp. 11.875% 2003 900 864 .36
Spintab AB 7.50% 2049 (3) 750 750 .31
Providian Financial Corp. 9.525% 2027 (2) 750 708 .30
Bankers Trust New York Corp.:
Series A, 7.90% 2027 340 331
6.70% 2007 250 244 .24
National Westminster Bank PLC 7.75% 2049 500 507 .21
Household Finance Corp. 6.40% 2008 500 483 .20
Wharf International Finance Ltd. 7.625% 2007 515 458 .19
Pan Pacific Industrial Investments PLC 0% 2007 (1) 785 352 .15
Hutchison Whampoa Finance Ltd., Series D, 6.988% 2037 300 283 .12
BankUnited Capital Trust, BankUnited Financial Corp. 250 250 .10
10.25% 2026
Chase Capital I, Series A, capital securities 7.67% 2026 250 247 .10
Komercni Finance BV 9.00%/10.75% 2008 (1) 250 207 .08
DIVERSIFIED MEDIA, CABLE TELEVISION & TELECOMMUNICATIONS
- -5.33%
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007 (1) 2,750 2,207
8.875% 2007 500 530 1.14
CBS Corp. 7.15% 2005 2,000 1,997 .83
Cablevision Industries Corp. 8.125% 2009 1,250 1,294 .54
Time Warner Inc.:
7.75% 2005 500 519
7.95% 2000 500 507 .43
PanAmSat Corp. 6.125% 2005 1,000 947 .40
SpectraSite Holdings, Inc.:
0%/11.25% 2009 (1,2) 750 431
0%/12.00% 2008 (1,2) 500 319 .32
Sprint Capital Corp. 6.875% 2028 625 585 .24
Qwest Communications International Inc. 0%/8.29% 2008 (1) 750 584 .24
Comcast Cellular Corp., Series B, 9.50% 2007 500 558 .23
TVN Entertainment Corp. 14.00% 2008 (2) 550 418 .17
V2 Music Holdings, units, 0%/14.00% 2008 (1) GBP575 295 .12
Comcast Cable Communications, Inc. 8.875% 2017 $ 250 288 .12
Dobson/Sygnet Communications Co. 12.25% 2008 (2) 250 268 .11
Rogers Communications Inc. 8.875% 2007 250 258 .11
News America Holdings Inc. 7.43% 2026 250 254 .11
Consorcio Ecuatoriano de Telecomunicaciones SA - CONECEL:
14.00% 2002 500 160
14.00% 2000 (5,6) 600 60 .09
Allegiance Telecom, Inc. 0%/11.75% 2008 (1) 250 155 .06
Viatel, Inc. 11.25% 2008 125 127 .05
Iridium LLC, Series A, 13.00% 2005 250 48 .02
COLLATERALIZED MORTGAGE OBLIGATIONS (PRIVATELY
ORIGINATED) (7) - 4.83%
GS Mortgage Securities Corp. II, mortgage
pass-through certificates:
Series 1998-C1, Class E, 7.243% 2030 1,250 1,142
Series 1998-C1, Class D, 7.243% 2030 1,000 950 .87
Nomura Asset Securities Corp., Series 1998-D6, 1,835 1,817 .76
Class A-A1, 6.28% 2030
L.A. Arena Funding, LLC 7.656% 2026 (2) 1,300 1,243 .52
Merrill Lynch Mortgage Investors, Inc.:
Series 1995-C3, Class A-3, 7.059% 2025 1,000 1,016
Series 1995-C2, Class A, 6.995% 2021 171 172 .49
CS First Boston Mortgage Securities Corp., 1,172 1,160 .48
Series 1998-C1, Class A-1A, 6.26% 2040
Morgan Stanley Capital I, Inc., Series 1998-HF2, 1,000 981 .41
Class A-2, 6.48% 2030
Norwest Asset Securities Corp., Series 1998-31, 947 933 .39
Class A-1, 6.25% 2014
Structured Asset Securities Corp., Series 1998-RF2, 757 791 .33
Class A, 8.567% 2027 (2)
DLJ Mortgage Acceptance Corp., Series 1995-CF2, 600 608 .25
Class A1, 6.85% 2027 (2)
Commercial Mortgage Acceptance Corp., Series 1998-C1, 475 468 .19
Class A-1, 6.23% 2007
GMAC Commercial Mortgage Securities, Inc., 345 347 .14
Series 1997-C1, Class A1, 6.83% 2003
LEISURE, TOURISM & RESTAURANTS - 4.59%
Joseph E. Seagram & Sons, Inc. 6.625% 2005 2,000 1,953 .81
Mirage Resorts, Inc. 6.625% 2005 2,000 1,913 .80
Horseshoe Gaming Holdings Corp. 8.625% 2009 (2) 1,500 1,455 .61
Royal Caribbean Cruises Ltd.:
7.25% 2018 1,000 949
7.00% 2007 500 489 .60
William Hill Finance 10.625% 2008 GBP750 1,236 .51
Florida Panthers Holdings, Inc. 9.875% 2009 (2) $1,000 970 .40
Boyd Gaming Corp. 9.50% 2007 500 499 .21
Regal Cinemas, Inc. 9.50% 2008 500 478 .20
Carmike Cinemas, Inc. 9.375% 2009 (2) 375 366 .15
International Game Technology 8.375% 2009 (2) 250 247 .10
Harrah's Operating Co., Inc. 7.875% 2005 250 243 .10
CKE Restaurants, Inc. 9.125% 2009 (2) 250 241 .10
BANKING & THRIFTS - 4.43%
Advanta Corp.:
Series B, 7.00% 2001 2,265 2,088
6.98% 2002 1,000 868
6.925% 2002 500 433
Series B, 8.99% 2026 500 335 1.55
Deutsche Bank Capital Funding Trust I 7.872% 2049 1,750 1,722 .72
BANK ONE CORP. 5.625% 2004 1,000 962 .40
Bank of America Corp. 5.875% 2009 1,000 937 .39
Sakura Capital Funding 5.997% 2049 1,000 825 .34
Imperial Capital Trust I, Series B, 9.98% 2026 550 544 .23
Chevy Chase Bank, FSB 9.25% 2008 500 508 .21
Riggs National Corp. 8.875% 2027 (2) 500 492 .20
GS Escrow Corp. 7.125% 2005 (2) 500 483 .20
Bank of Scotland 7.00% 2049 480 462 .19
BROADCASTING & PUBLISHING - 3.44%
Charter Communications Holdings, LLC:
0%/9.92% 2011 (1,2) 1,750 1,076
8.25% 2007 (2) 500 489 .65
Hearst-Argyle Television, Inc. 7.00% 2018 1,500 1,420 .59
Time Warner Telecom Inc. 9.75% 2008 1,225 1,286 .54
Chancellor Media Corp. of Los Angeles:
Series B, 8.75% 2007 500 505
8.125% 2007 500 490 .41
American Media Operations, Inc. 10.25% 2009 (2) 750 758 .32
Telemundo Holdings, Inc. 0%/11.50% 2008 (1) 1,000 540 .22
Muzak LLC 9.875% 2009 (2) 500 495 .21
Ziff-Davis Inc. 8.50% 2008 500 483 .20
Cox Communications, Inc. 6.40% 2008 500 482 .20
RBS Participacoes SA 11.00% 2007 250 166 .07
Globo Comunicacoes E Participacoes Ltda. 10.50% 2006 120 84 .03
HEALTH & PERSONAL CARE - 2.61%
Columbia/HCA Healthcare Corp.:
6.91% 2005 2,000 1,832
8.85% 2007 500 488
7.15% 2004 500 462 1.16
Integrated Health Services, Inc., Series A:
9.25% 2008 2,000 1,300
9.50% 2007 750 491 .74
Paracelsus Healthcare Corp. 10.00% 2006 1,500 1,200 .50
Allegiance Corp. 7.00% 2026 500 505 .21
MULTI-INDUSTRY - 2.53%
Sony Corp. 6.125% 2003 2,500 2,484 1.03
American Standard Inc. 7.125% 2006 1,500 1,549 .64
USX Corp. 6.65% 2006 1,000 967 .40
Reliance Industries Ltd.:
Series B, 10.25% 2097 250 200
10.25% 2097 (2) 500 399 .25
Graham Packaging Co. 8.75% 2008 500 495 .21
TRANSPORTATION - 2.43%
Continental Airlines, Inc.:
Series 1998-3, Class C-2, 7.25% 2005 500 489
Series 1999-1, Class B, 6.795% 2020 500 482
Series 1998-3, Class A-2, 6.32% 2008 500 481
Series 1998-1, Class A, 6.648% 2019 495 478
Series 1997-1, Class C, 7.42% 2007 (7) 471 468
Series 1996, Class C, 9.50% 2015 233 248 1.10
Atlas Air, Inc., pass-through trust, Series 1998-1, 1,488 1,464 .61
Class A, 7.38% 2018 (7)
Jet Equipment Trust:
Series 1995-D, 11.44% 2014 (2) 300 369
Series 1994-A, Class C1, 11.79% 2013 (2) 250 320 .28
United Air Lines, Inc. 10.67% 2004 500 567 .24
Airplanes Pass Through Trust, Series 1, Class C, 489 488 .20
8.15% 2019 (7)
INDUSTRIAL COMPONENTS - 1.78%
Federal-Mogul Corp.:
7.375% 2006 (2) 2,000 1,889
7.75% 2006 1,000 961
7.50% 2009 (2) 1,000 939 1.58
TRW Inc. 7.125% 2009 (2) 500 494 .20
ENERGY & RELATED COMPANIES - 1.71%
Petrozuata Finance, Inc.:
7.63% 2009 1,000 844
8.22% 2017 500 398 .52
PDVSA Finance Ltd.:
7.40% 2016 1,000 777
9.75% 2010 250 249 .43
Norcen Energy Resources Ltd. 7.375% 2006 500 492 .20
Union Pacific Resources Group, Inc. 7.30% 2009 500 488 .20
McDermott Inc. 9.375% 2002 400 418 .18
Pioneer Natural Resources Co. 7.20% 2028 375 274 .11
Kelley Oil & Gas Corp. 10.375% 2006 300 168 .07
FOREST PRODUCTS & PAPER - 1.67%
Pindo Deli Finance Mauritius Ltd.:
10.75% 2007 1,450 913
10.25% 2002 500 354 .53
Container Corp. of America 9.75% 2003 1,000 1,035 .43
Fort James Corp. 6.625% 2004 500 499 .21
Packaging Corp. of America 9.625% 2009 (2) 375 381 .16
Norampac Inc. 9.50% 2008 350 364 .15
Pacifica Papers Inc. 10.00% 2009 250 257 .11
Scotia Pacific Co. LLC, Class A-2, 7.11% 2028 250 205 .08
ASSET-BACKED OBLIGATIONS - 1.61% (7)
ComEd Transitional Funding Trust, Transitional
Funding Trust Notes:
Series 1998, Class A-4, 5.39%, 2005 2,000 1,940
Series 1998, Class A-6, 5.63% 2009 500 472 1.00
Sears Credit Account Master Trust II, Series 1998-2, 1,000 958 .40
Class A, 5.25% 2008
FIRSTPLUS Home Loan Owner Trust, Series 1997-1, 500 501 .21
Class A-6, 6.95% 2015
REAL ESTATE - 1.59%
SocGen Real Estate Co. LLC 7.64% 2049 2,250 2,159 .90
EOP Operating LP 6.625% 2005 500 484 .20
Security Capital Pacific Trust 7.20% 2013 500 470 .20
Irvine Apartment Communities, LP 7.00% 2007 500 458 .19
ProLogis Trust 7.05% 2006 250 244 .10
UTILITIES: ELECTRIC & GAS - 1.47%
Israel Electric Corp. Ltd.:
7.70% 2018 1,000 926
7.75% 2027 620 562
7.75% 2009 250 250 .73
Transener SA 9.25% 2008 1,000 868 .36
Commonwealth Edison Co. 9.875% 2020 400 460 .19
United Utilities PLC 6.875% 2028 500 459 .19
CABLE & TELEPHONE IN THE UNITED KINGDOM - 1.19%
COLT Telecom Group PLC:
8.875% 2007 DM1,250 706
7.625% 2008 1,000 535
0%/12.00% 2006 (1) $ 250 213 .60
NTL Inc.:
11.50% 2008 (2) 500 555
Series B, 10.00% 2007 250 260 .34
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 (1) 650 591 .25
GENERAL RETAILING & MERCHANDISING - 0.71%
Federated Department Stores, Inc. 6.30% 2009 (2) 1,000 949 .40
J.C. Penney Co., Inc. 8.25% 2022 750 757 .31
BUSINESS & PUBLIC SERVICES - 0.63%
Safety-Kleen Corp. 9.25% 2009 (2) 1,000 1,010 .42
Cendant Corp. 7.75% 2003 500 507 .21
FOOD & HOUSEHOLD PRODUCTS - 0.47%
Gruma, SA de CV 7.625% 2007 1,000 900 .38
Fage Dairy Industry SA 9.00% 2007 250 228 .09
MANUFACTURING & MATERIALS - 0.43%
Printpack, Inc. 10.625% 2006 500 481 .20
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 500 361 .15
BREED Technologies, Inc. 9.25% 2008 1,000 200 .08
MBIA INSURED - 0.40%
Alameda Corridor Transportation Authority, Series D, 1,000 965 .40
5.67% 2005
INSURANCE - 0.29%
Jefferson-Pilot Corp. 8.14% 2046 (2) 700 705 .29
METALS: NONFERROUS - 0.24%
BHP Finance Ltd. 6.69% 2006 600 588 .24
APPLIANCES & HOUSEHOLD DURABLES - 0.22%
Salton/Maxim Housewares, Inc. 10.75% 2005 500 530 .22
MISCELLANEOUS SERVICES - 0.22%
Petro Stopping Centers, LP 10.50% 2007 500 525 .22
AUTOMOTIVE - 0.19%
Ford Motor Credit Co. 5.80% 2009 500 464 .19
ENERGY SOURCES - 0.16%
Conoco Inc. 6.35% 2009 400 388 .16
MACHINERY & ENGINEERING - 0.11%
Deere & Co. 8.95% 2019 250 278 .11
FOOD & FOOD PRODUCTS - 0.10%
New World Pasta Co. 9.25% 2009 (2) 250 247 .10
NON-U.S. GOVERNMENTS & GOVERNMENTAL AUTHORITIES - 3.33%
Hellenic Republic 8.60% 2008 GRD475,000 1,785 .74
Panama (Republic of) 8.875% 2027 $1,250 1,084 .45
Philippines (Republic of) 9.875% 2019 1,000 975 .41
Ontario (Province of) 5.50% 2008 1,000 930 .39
Argentina (Republic of):
11.00% 2005 500 451
9.75% 2027 500 385 .35
Canadian Government 4.552% 2026 (4) C$1,000 733 .30
United Mexican States Government Eurobonds, $ 500 529 .22
Global, 11.375% 2016
Hungarian Government 15.00% 2001 HUF105,000 451 .19
Venezuela (Republic of) Eurobonds 5.938% 2007 (3) $ 429 316 .13
Korea (Republic of) 8.875% 2008 200 212 .09
Mendoza (Province of) 10.00% 2007 200 150 .06
FEDERAL AGENCY OBLIGATIONS - MORTGAGE PASS
THROUGHS (7) - 6.33%
Government National Mortgage Assn.:
7.00% 2023-2029 4,171 4,174
8.00% 2023 2,259 2,347
6.50% 2025-2028 1,175 1,146
7.50% 2023-2024 1,083 1,110
10.00% 2019 416 449
9.50% 2021 405 435 4.01
Fannie Mae:
7.00% 2012-2026 1,864 1,875
6.50% 2013-2026 1,103 1,095
6.00% 2013 915 892
5.905% 2033 (3) 711 709
10.00% 2018-2025 569 611
9.00% 2021 376 399 2.32
FEDERAL AGENCY OBLIGATIONS - OTHER - 1.40%
Freddie Mac 6.00% 2029 3,528 3,357 1.40
U.S. TREASURY OBLIGATIONS - 11.24%
6.25% 2003 15,000 15,288
7.50% 2005-2016 4,000 4,396
8.875% 2017 1,825 2,370
7.25% 2004 2,000 2,134
10.375% 2009-2012 1,000 1,246
5.75% 2002 1,000 1,004
7.625% 2022 500 594 11.24
-------------------
TOTAL BONDS & NOTES (cost: $209,597,000) 200,397 83.31
-------------------
Number of
Shares or
Principal
STOCKS Amount
- -------------------------------------------- -------- -------- --------
COMMON & PREFERRED STOCKS - 6.14%
Fuji JGB Investment LLC, Series A, 9.87% $3,100,000 2,728 1.13
noncumulative preferred (Japan) (2)
Tokai Preferred Capital Co. LLC, Series A, 9.98% $2,250,000 2,075 .86
noncumulative preferred (Japan) (2)
SB Treasury Co. LLC, Series A, 9.40% noncumulative $1,500,000 1,489 .62
preferred (Japan) (2)
BNP U.S. Funding LLC, Series A, 7.738% noncumulative $1,550,000 1,479 .62
preferred (France) (2)
Swire Pacific Capital Ltd. 8.84%
cumulative guaranteed perpetual capital securities 40,000 830
(Hong Kong) (2)
Swire Pacific Offshore Financing Ltd. 9.33%
cumulative guaranteed perpetual capital securities (2) 25,000 550 .57
Crown Castle International Corp. 12.75% preferred (2,8,9) 1,032 1,094 .45
ProLogis Trust, Series D, 7.92% preferred 40,000 915 .38
First Republic Capital Corp. 10.50% Series A (2,9) 750 750 .31
Adelphia Communications Corp., Series B, 13.00% (9) 5,000 580 .24
NB Capital Corp. 8.35% exchangeable depositary 20,000 529 .22
CarrAmerica Realty Corp., Series B, 8.57% cumulative 20,000 471 .20
redeemable preferred
IBJ Preferred Capital Co. LLC, Series A, 8.79% $400,000 340 .14
noncumulative preferred (Japan) (2)
Nextel Communications, Inc., Series D, 13.00% 309 331 .14
exchangeable preferred (8,9)
EarthWatch Inc., Series B, 7.00% 2009 (5,8,9) 71 250 .11
COLT Telecom Group PLC, warrants, expire 2006 250 157 .06
(United Kingdom) (9)
Esat Holdings Ltd., warrants, expire 2007 (Ireland) (5,9) 2,000 139 .06
Viatel, Inc. (9) 492 22 .01
NTL Inc., warrants, expire 2008 (United Kingdom 238 17 .01
- Incorporated in USA) (2,5,9)
Globalstar Telecommunications Ltd., warrants, 500 16 .01
expire 2004 (9)
McCaw International, Ltd., warrants, expire 2007 (2,9) 2,000 5 .00
Loral Orion Network Systems, Inc., warrants, 250 3 .00
expire 2007 (9)
Conecel Holdings Ltd., Class B, warrants, expire 2000 15,500 1 .00
(Ecuador) (5,9)
Argentina (Republic of), warrants, expire 1999 500 1 .00
(Argentina) (9)
Iridium World Communications Ltd., warrants, 250 .00
expire 2005 (Bermuda) (9)
V2 Music Holdings, warrants, expire 2000 575 .00
(United Kingdom) (9)
TVN Entertainment Corp., warrants, expire 2008 (5,9) 550 .00
-------------------
TOTAL STOCKS (cost: $14,043,000) 14,772 6.14
-------------------
CONVERTIBLE DEBENTURES Principal
- -------------------------------------------- Amount
INDUSTRIALS & SERVICES - 1.98% (000)
Bell Atlantic Financial Services, Inc.: (2)
4.25% senior exchangeable note 2005 $2,500 2,578
5.75% senior exchangeable note 2003 750 771 1.40
Sunglass Hut International, Inc. 5.25% convertible 600 507 .21
subordinated note 2003
Advanced Micro Devices, Inc. 6.00% convertible 625 500 .21
subordinated note 2005
MBI Finance Ltd. 0% 2001 500 393 .16
-------------------
MISCELLANEOUS - 0.20%
Other convertible debentures in initial period 484 .20
of acquisition
-------------------
TOTAL CONVERTIBLE DEBENTURES (cost: $5,012,000) 2.18
-------------------
TOTAL EQUITY SECURITIES (cost: $19,055,000) 20,005 8.32
-------------------
Short-Term Securities
- --------------------------------------------
CORPORATE SHORT-TERM NOTES - 7.44%
Bell Atlantic Network Funding Corp. 4.84% due 6/2/1999 3,100 3,099 1.29
Electronic Data Systems Corp. 4.88% due 6/22/1999 (2) 3,100 3,091 1.29
Abbott Laboratories 4.83% due 6/3/1999 3,000 2,999 1.25
Pfizer Inc 4.77% due 6/4/1999 (2) 2,115 2,114 .88
Eastman Kodak Co. 4.78% due 8/16/1999 2,134 2,110 .88
Associates First Capital Corp. 4.93% due 6/1/1999 2,000 2,000 .83
Albertson's, Inc. 4.83% due 6/15/1999 (2) 1,000 998 .41
Gannett Co., Inc. 4.80% due 6/22/1999 (2) 1,000 997 .41
Ameritech Capital Funding Corp. 4.77% due 6/10/1999 (2) 500 499 .20
-------------------
TOTAL SHORT-TERM SECURITIES (cost: $17,909,000) 17,907 7.44
TOTAL INVESTMENT SECURITIES (cost: $246,561,000) 238,309 99.07
Excess of cash and receivables over payables 2,239 0.93
NET ASSETS $240,548100.00%
-------------------
(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) Coupon rate may change periodically.
(4) Index-linked bond, whose principal amount moves with
a government retail price index.
(5) Valued under procedures established by the Board
of Trustees.
(6) Company not making interest payments, bankruptcy
proceedings pending.
(7) Pass-through securities backed by a pool of mortgages
or other loans on which principal payments are
periodically made. Therefore, the effective maturity
is shorter than the stated maturity.
(8) Payment in kind. The issuer has the option of paying additional
securities in lieu of cash.
(9) Non-income-producing security.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series High Yield Bond Fund
Investment Portfolio, May 31, 1999
<S> <C> <C> <C>
[pie chart]
Percent of
net assets
Corporate Bonds 80.86%
Non-U.S.Government Bonds 1.78%
Equity Securities 13.29%
Cash & Equivalents 4.07%
100.00%
[end pie chart]
Largest Corporate Holdings
NEXTEL Communications 5.65
Omnipoint 3.33
COLT Telecom Group 2.86
Integrated Health Services 2.49
Container Corp. of America 2.31
Viatel 2.16
NTL 1.97
Charter Communications 1.91
Fox/Liberty Networks 1.87
Clearnet Communications 1.64
Principal Market Percent
Amount Value Of Net
BONDS & NOTES (000) (000) Assets
CELLULAR, PAGING & WIRELESS COMMUNICATIONS - 16.51%
Nextel Communications, Inc.:
0%/9.95% 2008 (1) $12,000 $7,980 3.19%
0%/10.65% 2007 (1) 7,500 5,250
0%/9.75% 2007 (1) 3,000 2,040
12.00% 2008 (2) 1,000 1,140
McCaw International, Ltd. (owned by NEXTEL 7,000 4,270
Communications, Inc.) 0%/13.00% 2007 (1)
Nextel International, Inc. 0%/12.125% 2008 (1) 6,000 3,060
Omnipoint Corp.:
11.625% 2006 12,700 11,684
14.00% 2003 (2)(3)(4) 8,750 9,187
8.25% 2006 (2)(5) 1,543 1,450
Clearnet Communications Inc.:
0%/11.75% 2007 (1) C$20,825 9,469
0%/10.40% 2008 (1) 7,000 2,755
SpectraSite Holdings, Inc.:
0%/11.25% 2009 (1)(2) $10,375 5,966
0%/12.00% 2008 (1)(2) 5,250 3,347
American Cellular Corp. 10.50% 2008 7,850 8,125
CCPR Services, Inc. 10.00% 2007 7,250 7,794
PageMart Wireless, Inc. 0%/11.25% 2008(1) 21,650 6,279
CTI Holdings SA 0%/11.50% 2008 (1) 10,500 5,329 0.71
Mobile Telecommunication Technologies Corp. 13.50% 2002 3,500 3,894 0.52
Comunicacion Celular SA 0%/14.125% 2005 (1) 5,000 3,025
Dobson Communications Corp. 11.75% 2007 2,750 2,970 0.40
Occidente y Caribe Celular SA 0%/14.00% 2004 (1) 3,700 2,706 0.37
CellNet Data Systems, Inc. 0%/14.00% 2007 (1) 6,761 2,704
Centennial Cellular Corp. 10.75% 2008 (2) 2,250 2,340
Loral Orion Network Systems, Inc. 11.25% 2007 2,400 2,040
Telesystem International Wireless Inc. 0%/13.25% 2007 (1) 3,450 1,898
Western Wireless Corp. 10.50% 2006 1,500 1,643
PTC International Finance BV 0%/10.75% 2007 (1) 2,000 1,520
Teletrac Holdings, Inc. 14.00% 2007 4,100 1,312
Price Communications Cellular Holdings, Inc. 11.25% 2008 (3) 1,061 1,072
Globalstar, LP 11.375% 2004 1,000 630
Cellco Finance NV 15.00% 2005 250 248
DIVERSIFIED MEDIA, CABLE TELEVISION &
TELECOMMUNICATIONS - 16.37%
Charter Communications Holdings, LLC:
0%/9.92% 2011 (1)(2) 17,500 10,762
8.25% 2007 (2) 3,500 3,421
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007 (1) 11,585 9,297
8.875% 2007 4,410 4,675
Viatel, Inc.:
11.25% 2008 6,000 6,097
11.15% 2008 DM7,000 3,742
0%/12.50% 2008 (1) $5,250 3,255
0%/12.40% 2008 (1) DM1,000 335
NEXTLINK Communications, Inc.:
9.625% 2007 $3,500 3,307
9.00% 2008 3,000 2,730
0%/12.25% 2009 (1)(2) 3,500 1,855
12.50% 2006 1,000 1,090
Time Warner Telecom Inc. 9.75% 2008 7,625 8,006
Esat Telecom Group PLC:
0%/12.50% 2007 (1) 5,125 3,664
11.875% 2008 2,750 2,888
TVN Entertainment Corp. 14.00% 2008 (2) 6,500 4,940
US Xchange, LLC 15.00% 2008 4,625 4,764
KMC Telecom Holdings, Inc. 0%/12.50% 2008 (1) 8,500 4,590
Century Communications Corp. 0% 2008 8,900 4,027
Global TeleSystems Group, Inc. 9.875% 2005 3,600 3,492
FrontierVision 11.00% 2006 3,000 3,300
CSC Holdings, Inc. 9.875% 2013 3,000 3,293
GST Equipment Funding, Inc. 13.25% 2007 3,000 3,240
Allegiance Telecom, Inc.:
0%/11.75% 2008 (1) 4,000 2,480
12.875% 2008 625 675
Lenfest Communications, Inc. 8.25% 2008 3,000 3,120
Avalon Cable of Michigan:
9.375% 2008 (2) 2,500 2,562
0%/11.875% 2008 (1) (2) 500 336
V2 Music Holdings:
0%/14.00% 2008 (1) 6,000 2,208
0%/14.00% 2008 (1) GBP1,000 512
Globo Comunicacoes E Partcipacoes Ltda. 10.50% 2006 $3,750 2,635
Multicanal Participacoes SA, Series B, 12.625% 2004 2,375 2,191
Falcon Holding Group, LP, Falcon Funding Corp. 8.375% 2010 2,000 1,980
IMPSAT Corp. 12.375% 2008 1,750 1,584
Teligent, Inc. 11.50% 2007 1,500 1,459
Telemundo Holdings, Inc. 0%/11.50% 2008 (1) 2,500 1,350
Coaxial Communications of Central Ohio, Inc. 10.00% 2006 1,000 1,048
Newsquest Capital PLC 11.00% 2006 600 654
Conecel Holdings Ltd.:
14.00% 2002 750 240
14.00% 2000 (4)(6) 1,000 100
BROADCASTING & PUBLISHING - 7.26%
Chancellor Media Corp. of Los Angeles:
Series B, 8.75% 2007 6,000 6,060
8.125% 2007 4,500 4,410
9.375% 2004 1,500 1,545
American Media Operations, Inc. 10.25% 2009 (2) 6,650 6,716
ACME Intermediate Holdings, LLC, 0%/12.00% 2005 (1) 8,911 5,792
Gray Communication Systems, Inc. 10.625% 2006 4,750 4,964
Ziff-Davis Inc. 8.50% 2008 5,000 4,825
Muzak Holdings LLC 0%/13.00% 2010 (1)(2) 6,500 3,543
Muzak LLC 9.875% 2009 (2) 1,000 990
Big City Radio, Inc. 0%/11.25% 2005 (1) 6,000 4,260
Antenna TV SA 9.00% 2007 2,750 2,667
TransWestern Publishing Co. LLC 9.625% 2007 2,250 2,284
Young Broadcasting Inc. 10.125% 2005 2,000 2,100
STC Broadcasting, Inc. 11.00% 2007 1,750 1,842
Sun Media Corp. 9.50% 2007 1,300 1,411
RBS Participacoes SA 11.00% 2007 1,000 662
LEISURE, TOURISM & RESTAURANTS - 6.95%
Regal Cinemas, Inc.:
8.875% 2010 7,500 6,825
9.50% 2008 3,000 2,865
AMF Bowling Worldwide, Inc:
10.875% 2006 7,000 5,810
0%/12.25% 2006 (1) 3,716 2,378
Horseshoe Gaming Holdings Corp. 8.625% 2009 (2) 8,000 7,760
Boyd Gaming Corp.:
9.25% 2003 5,000 5,100
9.50% 2007 1,000 997
William Hill Finance 10.625% 2008 GBP3,550 5,853
Carmike Cinemas, Inc. 9.375% 2009 (2) $3,750 3,656
Sun International Hotels Ltd., Sun International
North America, Inc.:
8.625% 2007 2,250 2,227
9.00% 2007 750 754
Harrah's Operating Co., Inc. 7.875% 2005 2,275 2,212
Six Flags Entertainment Corp. 8.875% 2006 2,000 2,030
KSL Recreation Group, Inc. 10.25% 2007 1,250 1,275
Friendly Ice Cream Corp. 10.50% 2007 925 842
FelCor Suites LP 7.375% 2004 750 700
Florida Panthers Holdings, Inc. 9.875% 2009 (2) 500 485
MANUFACTURING & MATERIALS - 6.10%
Tekni-Plex, Inc. 9.25% 2008 5,500 5,500
Anchor Glass Container Corp. 11.25% 2005 5,000 5,163
Flextronics International Ltd. 8.75% 2007 4,500 4,522
Printpack, Inc. 10.625% 2006 3,750 3,609
Westinghouse Air Brake Co.:
9.375% 2005 3,000 3,060
9.375% 2005 (2) 500 510
Samsung Electronics Co., Ltd.:
7.45% 2002 3,150 3,020
9.75% 2003 500 514
Boyds Collection, Ltd. 9.00% 2008 (2) 3,137 3,231
Key Plastics Holdings, Inc. 10.25% 2007 3,000 3,007
Impress Metal Packaging Holdings BV 9.875% 2007 DM4,750 2,804
Kaiser Aluminum & Chemical Corp. 12.75% 2003 $2,350 2,374
Hayes Lemmerz International, Inc. 8.25% 2008 (2) 2,000 1,930
BREED Technologies, Inc. 9.25% 2008 9,500 1,900
Doe Run Resources Corp., 11.25% 2005 2,000 1,800
DGS International Finance Co. BV 10.00% 2007 2,000 1,455
Advanced Micro Devices, Inc. 11.00% 2003 1,000 1,035
CABLE & TELEPHONE IN THE UNITED KINGDOM - 5.32%
NTL Inc.:
0%/10.75% 2008 (1) GBP7,250 7,660
0%/9.75% 2008 (1) $5,500 3,685
11.50% 2008 (2) 1,500 1,665
Series B, 10.00% 2007 1,500 1,560
COLT Telecom Group PLC:
0%/12.00% 2006 (1) 11,250 9,591
8.875% 2007 DM7,500 4,234
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 (1) $10,000 9,100
TeleWest Communications PLC 9.625% 2006 2,000 2,105
FOREST PRODUCTS & PAPER - 5.14%
Container Corp. of America:
9.75% 2003 14,600 15,111
Series A, 11.25% 2004 2,000 2,100
Graham Packaging Co.:
0%/10.75% 2009 (1) 6,250 4,328
8.75% 2008 4,250 4,207
Paperboard Industries International Inc. 8.375% 2007 4,000 3,840
Advance Agro PCL 13.0% 2007 3,200 2,508
Indah Kiat Finance Mauritius Ltd:
11.875% 2002 2,300 1,751
10.00% 2007 250 158
Pacifica Papers Inc. 10.00% 2009 1,500 1,545
Norampac Inc. 9.50% 2008 1,000 1,040
Copamex Industrias, SA de CV, Series B, 11.375% 2004 1,000 900
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1,300 819
HEALTH & PERSONAL CARE - 4.67%
Integrated Health Services, Inc.:
Series A, 9.25% 2008 11,750 7,638
Series A, 9.50% 2007 6,325 4,143
10.25% 2006 5,000 3,350
Paracelsus Healthcare Corp. 10.00% 2006 13,000 10,400
Mariner Health Group, Inc. 9.50% 2006 8,100 5,670
Sun Healthcare Group, Inc.:
9.375% 2008 (2) 8,000 1,520
9.50% 2007 2,925 556
Tenet Healthcare Corp. 8.00% 2005 1,500 1,470
FOOD & FOOD RETAILING - 2.85%
Fage Dairy Industry SA 9.00% 2007 10,500 9,581
Home Products International, Inc. 9.625% 2008 7,500 7,050
Randall's Food Markets, Inc. 9.375% 2007 4,400 4,576
ENERGY & RELATED COMPANIES - 2.17%
Cross Timbers Oil Co.:
Series B, 9.25% 2007 3,000 2,970
8.75% 2009 1,250 1,194
Pogo Producing Co.:
8.75% 2007 2,500 2,375
10.375% 2009 1,250 1,306
Crown Castle International Corp. 0%/10.625% 2007 (1) 3,500 2,450
Kelley Oil & Gas Corp.:
10.375% senior subordinated notes 2006 2,750 1,540
10.375% 2006 1,000 560
Petrozuata Finance, Inc.:
Series B, 8.22% 2017 1,000 795
Series A, 7.63% 2009 800 675
Benton Oil and Gas Co.:
11.625% 2003 1,375 949
9.375% 2007 525 299
McDermott Inc. 9.375% 2002 1,000 1,044
BANKING & FINANCIAL SERVICES - 1.73%
Advanta Corp.:
Series D, 6.98% 2002 2,000 1,735
Series D, 6.925% 2002 2,000 1,733
7.50% 2000 1,000 983
Providian Financial Corp. 9.525% 2027 (2) 3,500 3,302
Wharf International Finance Ltd., 7.625% 2007 3,000 2,667
Chase Commercial Mortgage Securities Corp., Series 1998-2, 1,522 1,297
Class E, 6.39% 2030 (7)
Komercni Finance BV 9.00%/10.75% 2008 (1) 750 621
Wilshire Financial Services Group, Inc. 13.00% 2004 (4) 1,500 300
Korea Development Bank 6.625% 2003 250 237
MISCELLANEOUS SERVICES - 1.58%
Safety-Kleen Services, Inc. 9.25% 2008 7,375 7,744
Iron Mountain Inc.:
10.125% 2006 1,500 1,627
8.75% 2009 350 350
EarthWatch Inc. 0%/12.50% 2005 (1)(2)(4) 2,880 1,793
Reliance Industries Ltd. 10.50% 2046 250 218
BEVERAGES - 1.56%
Delta Beverage Group, Inc. 9.75% 2003 6,200 6,370
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 3,750 3,741
8.75% 2003 1,500 1,504
CONSUMER PRODUCTS - 1.17%
Salton/Maxim Housewares, Inc. 10.75% 2005 3,125 3,313
Zilog, Inc. 9.50% 2005 3,000 2,640
WestPoint Stevens Inc. 7.875% 2005 1,500 1,481
AKI Holding Corp. 0%/13.50% 2009 (1) 1,750 678
AKI, Inc. 10.50% 2008 625 612
TRANSPORTATION - 0.67%
Teekay Shipping Corp. 8.32% 2008 3,500 3,369
USAir, Inc., pass-through trust, Series 1993-A3, 1,500 1,613
10.375% 2013 (7)
PRIVATE ISSUE COLLATERALIZED MORTGAGE/ ASSET-BACKED
OBLIGATIONS - 0.52%
Kmart Corp., Series K-2, 9.78% 2020 2,000 2,240
DR Securitized Lease Trust, pass-through certificates, 1,500 1,620
Series 1994 K-2, 9.35% 2019 (7)
PROTECTION SERVICES - 0.20%
Protection One Alarm Monitoring, Inc. 13.625% 2005 1,300 1,459
TEXTILES & APPAREL - 0.09%
Tultex Corp. 10.625% 2005 1,498 689
NON-U.S. GOVERNMENTS & GOVERNMENTAL AUTHORITIES - 1.78%
Panama (Republic of):
Interest Reduction Bond 3.75% 2014 (5) 3,000 2,183
8.875% 2027 2,250 1,952
United Mexican States Government Eurobonds:
Global 11.375% 2016 2,750 2,908
Global 11.50% 2026 500 551
Philippines (Republic of):
8.875% 2008 1,750 1,702
9.875% 2019 500 488
Argentina (Republic of):
11.00% 2006 1,500 1,354
9.75% 2027 800 616
11.375% 2017 250 220
Korea (Republic of) 8.875% 2008 1,000 1,059
Bulgaria (Republic of) Front Loaded Interest 445 255
Reduction Bond, 2.50% 2012 (5)
TOTAL BONDS & NOTES (cost: $664,667,000) 615,547
Number of
Shares or
Principal
Amount
STOCKS
COMMON & PREFERRED STOCKS - 10.49%
Nextel Communications, Inc.:
Series E, 11.25% exchangeable preferred, 4,348 4,652
redeemable 2010 (3) (8)
Series D, 13.00% exchangeable preferred, 13,239 13,636
redeemable 2009 (3) (8)
McCaw International, Ltd. warrants, expire 2007 (2) (8)
(owned by Nextel Communications, Inc.) 2,500 6
Fuji JGB Investment LLC, Series A, 9.87% noncumulative $9,500,00 8,360
preferred (Japan)
Dobson Communications Corp.:
12.25% exchangeable preferred, redeemable 2008 (3) (8) 4,384 4,077
12.25% senior exchangeable preferred, redeemable 2008 (2)(3)(8) 3,643 3,388
Crown Castle International Corp., 12.75% preferred (2)(3)(8) 6,707 7,110
COLT Telecom Group PLC, warrants, expire 2006 11,250 7,065
(United Kingdom) (8)
Tokai Preferred Capital Co. LLC,
Series A, 9.98%/11.091% noncumulative preferred (Japan)(1) $4,000,00 3,689
EarthWatch, Inc.:
Series B 7.00% convertible preferred 2009 (2)(3)(4)(8) 857,143 3,000
Series C 8.50% convertible preferred 1999 (2)(3)(4) 167,489 419
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed 160,000 3,320
perpetual capital securities (Hong Kong)
Viatel, Inc.(8) 59,973 2,699
Omnipoint Corp. 7.00% convertible preferred (2) 62,000 2,170
Omnipoint Corp. (2)(8) 14,893 260
Chevy Chase Preferred Capital Corp. 10.375% 38,200 2,063
First Republic Capital Corp. PF 10.50% preferred (2)(8) 2,000 2,000
Packaging Corp. of America 12.375% preferred 2010 (2)(3)(8) 17,500 1,829
IXC Communications, Inc. (3) (8) 1,502 1,442
SkyTel Communications, Inc. $2.25 convertible preferred 42,000 1,344
Integrated Health Services, Inc. (8) 225,000 1,322
Adelphia Communications Corp.13.00% preferred, Series B, 10,000 1,161
2009 (8)
Radio One, Inc. Class A (8) 17,500 704
Verio Inc., warrants, expire 2004 (2)(8) 7,350 673
Acme Televison, LLC (2) (8) 363 363
ACME Intermediate Holdings, LLC (2) (8) 5,970 358
Comunicacion Celular SA, Class B, warrants, expire 2003 5,000 310
(Colombia) (8)
Kelley Oil & Gas Corp. $2.625 convertible preferred 36,800 186
Loral Orion Network Systems, Inc., warrants, expire 2007 (8) 11,250 121
NTL Inc., warrants, expire 2008 (United Kingdom --Incorporated 1,425 100
in USA) (2) (4) (8)
Esat Telecom Group PLC., warrants, expire 2007 1,250 87
(Ireland) (4) (8)
CellNet Data Systems, Inc., warrants, expire 2007 (2) (8) 20,870 54
Protection One Alarm Monitoring, Inc. warrants, 6,400 38
expire 2005 (2) (8)
Globalstar Telecommunications Ltd., warrants, 1,000 32 0.00
expire 2004 (8)
KMC Telecom Holdings Inc., warrants, expire 2008 (2) (8) 9,500 24 0.00
Conecel Holdings Ltd., Class B, warrants, expire 2000 25,900 2 0.00
(Ecuador) (4) (8)
Teletrac Holdings, Inc., warrants, expire 2007 (2) (4) (8) 4,100 0.00
V2 Music Holdings PLC, (United Kingdom)
Warrants expire 2008 (2) (8) 6,900 0.00
Warrants expire 2008 (8) 1,000
TVN Entertainment Corp., warrants, expire 2008 (4)(8) 6,500 0.00
TOTAL STOCKS (cost: $81,219,000) 78,064
Principal
Amount
(000)
CONVERTIBLE DEBENTURES
Industrials & Services - 1.29%
Jacor Communications, Inc. 0% 2018 $4,750 2,613
Integrated Health Services, Inc. 5.75% 2001 3,500 2,104
Advanced Micro Devices, Inc. 6.00% 2005 2,400 1,920
Sunglass Hut International Inc. 5.25% 2003 2,125 1,796
MBI Finance Ltd, 0% 2001 1,500 1,177
Diversified Media, Cable Television & Telecommunications
- -0.20%
Piltel International Holding Corp. 1.75% 2006 1,875 1,125
COLT Telecom Group PLC, 2.00% 2005 DM500 395 0.05
TOTAL CONVERTIBLE DEBENTURES (cost $12,912,000) 11,130 1.49
Miscellaneous - 1.31%
Other equity securities in initial period of acquisition 9,781
TOTAL EQUITY SECURITIES (cost: $94,131,000) 98,975 13.29
Short Term Securities
CORPORATE SHORT-TERM NOTES - 2.40%
Lucent Technologies Inc. 4.83% due 7/6/1999 $5,500 5,473
Hershey Foods Corp. 4.83% due 8/2/1999 5,000 4,956 0.68
Albertson's, Inc. 4.83% due 6/15/1999 (2) 5,000 4,990 0.67
General Electric Capital Corp. 4.93% due 6/1/1999 2,300 2,300
TOTAL SHORT-TERM SECURITIES (cost: $17,721,000) 17,719 2.40
TOTAL INVESTMENT SECURITIES (cost: $776,519,000) 732,241 98.33
Excess of cash and receivables over payables 12,465 1.67
NET ASSETS 744,706 100.00%
(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) 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) Coupon rate may change periodically
(6) Company not making interest payments
(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) Non-income producing security
See notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
U.S. Government/AAA-Rated Securities Fund
Investment Portfolio, May 31, 1999
<S> <C>
[pie chart]
- --------------------------------------------------
FEDERAL AGENCY MORTGAGE-RELATED SECURITIES 33.92
PRIVATE MORTGAGE & ASSET-BACKED SECURITIES 33.47
U.S. TREASURY OBLIGATIONS 23.91
OTHER FEDERAL OBLIGATIONS 3.48
OTHER BONDS 2.59
CORPORATE BONDS 0.32
CASH & EQUIVALENTS 2.31
- --------------------------------------------------
</TABLE>
[end pie chart]
<TABLE>
U.S. Government Guaranteed/ AAA-Rated Securitites Fund
Investment Portfolio, May 31, 1999
Unaudited
<S> <C> <C> <C>
Principa Market Percent
Amount Value Of Net
Bonds & Notes (000) (000) Assets
- -------------------------------------------- ------------------------
Federal Agency Obligations - Mortgage Pass-Throughs (1)
- -30.65%
Fannie Mae:
6.00% 2013-2029 11,863 11,524
7.00% 2012-2028 11,127 11,227
6.50% 2013-2028 7,722 7,637
8.00% 2024-2028 6,318 6,585
7.50% 2009-2039 6,091 6,260
8.50% 2023-2027 5,546 5,833
13.00% 2015 2,187 2,564
10.00% 2018 2,161 2,321
12.00% 2015-2019 2,009 2,279
5.50% 2014 1,968 1,879
9.00% 2011-2025 1,428 1,513 11.09%
Government National Mortgage Assn.:
7.00% 2023-2029 14,700 14,715
8.00% 2023-2027 11,004 11,433
7.50% 2022-2028 7,724 7,904
6.00% 2013-2014 6,596 6,456
8.50% 2021-2023 5,406 5,729
6.50% 2028-2029 4,977 4,855
9.50% 2019-2021 2,892 3,106
10.00% 2019 1,666 1,797
5.50% 2013 1,005 963
9.00% 2009-2016 747 800
10.50% 2019 62 68
11.00% 2019 20 22 10.76
Freddie Mac:
6.00% 2014-2029 34,152 32,738
8.00% 2012-2026 3,902 4,034
8.25% 2008-2009 2,632 2,730
5.50% 2013 1,926 1,841
9.00% 2028 1,554 1,646
7.00% 2008 1,583 1,606
8.50% 2018-2027 1,349 1,417
9.50% 2016 91 97
12.00% 2016 1 1 8.57
Freddie Mac Gold 9.00% 2022 1,159 1,231 .23
U.S. Treasury Obligations - 23.91%
8.875% 2017 27,920 36,257
10.375% 2009 26,000 31,322
7.25% 2004 11,965 12,745
5.75% 2003 10,285 10,306
10.75% 2003 6,500 7,638
7.875% 2021 5,750 6,947
12.00% 2013 4,000 5,677
11.625% 2002-2004 3,820 4,764
7.125% 2023 2,750 3,102
6.125% 2007 3,000 3,060
3.465% 2007 (2) 2,750 2,773
3.694% 2028 (2) 2,000 1,949
5.875% 2002 1,250 1,259
3.65% 2008 (2) 750 752 23.91
Collateralized Mortgage Obligations (Privately
Originated) (1) - 23.28%
Morgan Stanley Capital I, Inc.:
Series 1998-HF2, Class A-2, 6.48% 2030 7,500 7,357
Series 1997-HF1, Class A-1, 6.86% 2006 (3) 4,349 4,407
Series 1998-HF2, Class A-1, 6.01% 2030 2,898 2,833
Series 1998-WF2, Class A-1, 6.34% 2030 2,828 2,807
Series 1998-WF1, Class A-1, 6.25% 2007 2,466 2,436 3.69
Westam Mortgage, Class 4-H, 8.95% 2018 11,000 11,165 2.08
Ocwen Residential MBS Corp., Series 1998-R1, Class AWC, 9,614 9,180 1.71
1.735% 2040 (3)(4)
Merrill Lynch Mortgage Investors, Inc.:
Series 1998-C3, Class A-1, 5.65% 2030 3,409 3,295
Series 1997-C1, Class A-1, 6.95% 2029 (4) 2,742 2,788
Series 1995-C3, Class A-3, 7.059% 2025 (4) 1,500 1,523
Series 1995-C3, Class A-2, 6.819% 2025 (4) 1,500 1,509 1.69
GE Capital Mortgage Services, Inc., Series 1994-15, 8,000 7,530 1.40
Class A-10, 6.00% 2009
Nomura Asset Securities Corp., Series 1998-D6, 7,339 7,267 1.35
Class A-A1, 6.28% 2030
Deutsche Mortgage & Asset Receiving Corp., 7,023 6,903 1.28
Series 1998-C1, Class A-1, 6.22% 2007
Structured Asset Securities Corp.:
Series 1998-RF2, Class A, 8.567% 2027 (3) (4) 3,195 3,341
Series 1998-RF1, Class A, 8.690% 2027 (3) (4) 3,011 3,162
Series 1996-CFL, Class A1-C, 5.944% 2028 (4) 51 51 1.22
Mortgage Capital Funding, Inc., Series 1998-MC1, 6,062 6,114 1.14
Class A-1 6.42% 2030
CS First Boston Mortgage Securities Corp., 5,905 5,845 1.09
Series 1998-C1, Class A-1A, 6.26% 2040
Chase Commercial Mortgage Securities Corp.:
Series 1998-2, Class A-2, 6.39% 2008 3,000 2,942
Series 1998-1, Class A-1, 6.34% 2030 2,800 2,787 1.06
Security National Mortgage Loan Trust, Series 1999-1, 5,000 4,928 .92
Class A-2, 8.353% 2030 (3)
Commercial Mortgage Acceptance Corp.:
Series 1998-C1, Class A-1, 6.23% 2007 2,373 2,342
Series 1998-C2, Class A-1, 5.80% 2006 1,438 1,405 .70
AMRESCO Commercial Mortgage Funding I Corp., 3,395 3,425 .64
Series 1997-C1, Class A-1, 6.73% 2029
J.P. Morgan Commercial Mortgage Finance Corp., 3,000 3,024 .56
Series 1995-C1, Class A-2, 7.392% 2010 (4)
Nationsbanc Montgomery Funding Corp., 2,891 2,798 .52
Series 1998-5, Class A-1, 6.00% 2013
First Nationwide Trust, Series 1999-2, 2,104 2,036 .38
Class IPP-A-1, 6.50% 2029
Freddie Mac Loan Receivables Trust, Series 1998-A, 2,000 1,917 .36
Class A-3, 6.69% 2020 (3)
LB Commerical Conduit Mortgage Trust, Series 1998-C1, 1,780 1,777 .33
Class A-1, 6.33% 2030
DLJ Mortgage Acceptance Corp., Series 1996-CF1, 1,574 1,610 .30
Class A1-A, 7.28% 2028
GMAC Commercial Mortgage Securities, Inc., 1,500 1,503 .28
Series 1997-C1, Class A-3, 6.869% 2007
DLJ Commercial Mortgage Corp., Series 1998-CF2, 1,250 1,215 .22
Class A-1B, 6.24% 2031
Norwest Asset Securities Corp., Series 1998-31, 1,231 1,212 .22
Class A-1, 6.25% 2014
Ryland Acceptance Corp., Series 88, Class E, 7.95% 2019 748 762 .14
Asset-Backed Obligations (1) - 10.19%
Green Tree Financial Corp.:
Series 1995-9, Class A-5, 6.80% 2027 5,000 5,022
Series 1996-7, Class A-6, 7.65% 2027 3,000 3,077
Series 1997-6, Class A-7, 7.14% 2029 2,500 2,535
Series 1997-6, Class A-6, 6.90% 2029 2,500 2,521
Series 1996-10, Class A-5, 6.83% 2028 2,500 2,501
Series 1999-2, Class A-2, 5.84% 2030 2,500 2,477
Series 1995-3, Class A-5, 7.30% 2025 2,050 2,061 3.76
EQCC Home Equity Loan Trust, Series 1999-2, 5,000 4,978 .93
Class A-3F, 6.347% 2022
Puerto Rico Public Financing Corp., Series 1999-1, 4,832 4,763 .89
Class A, 6.15% 2008
Chase Credit Card Master Trust, Series 1997-5, 4,000 4,029 .75
Class A, 6.194% 2005
First Chicago Master Trust II, Series 1995-M, 3,500 3,505 .65
Class A, 5.143% 2003 (4)
Chevy Chase Master Credit Card Trust II, 3,000 2,985 .56
Series 1996-C, Class A, 5.009% 2007 (4)
Triad Auto Receivables Owner Trust, Series 1999-1, 3,000 2,967 .55
Class A-2, 6.09% 2005
ComEd Transitional Funding Trust:
Series 1998-1, Class A-5, 5.44% 2005 1,600 1,532
Series 1998-1, Class A-7, 5.74% 2008 1,500 1,409 .54
Standard Credit Card Master Trust I, Series 1994-4, 2,500 2,611 .48
Class A, 8.25% 2003
Sears Credit Account Master Trust, Series 1998-2, 2,275 2,178 .40
Class A, 5.25% 2008
PECO Energy Transition Trust, Series 1999-1, 2,000 1,924 .36
Class A-7, 6.13% 2009
Citibank Credit Card Master Trust I, Series 1998-9, 1,800 1,721 .32
Class A, 5.30% 2006
Federal Agency Obligations - Other - 3.48%
Federal Home Loan Banks:
5.625% 2001 5,000 4,991
5.125% 2003 2,500 2,416 1.38
Freddie Mac, 5.75% 2008 4,500 4,354 .81
Fannie Mae:
5.75% 2005 3,000 2,945
6.00% 2008 1,000 985 .73
Tennessee Valley Authority, Series G, 5.375% 2008 3,250 3,042 .56
Collateralized Mortgage Obligations (Federal
Agencies) (1) - 3.27%
Freddie Mac:
Series 1567, Class A, 5.338% 2023 (4) 7,077 6,900
Series 1716, Class A, 6.50% 2009 2,250 2,218
Series 1507, Class JZ, 7.00% 2023 608 592
Series 2030, Class F, 5.403% 2028 (4) 286 288
Series 83-B, Class B-3, 12.50% 2013 258 285 1.91
Fannie Mae:
Series 1997-M6, Class ZA, 6.85% 2026 5,635 5,329
Series 1998-M6, Class A-2, 6.32% 2008 1,000 988
Series 1997-28, Class C, 7.00% 2027 1,000 984 1.36
Development Authorities- 2.39%
Inter-American Development Bank 8.875% 2009 10,000 11,831 2.20
Asian Development Bank 5.75% 2003 1,000 992 .19
Financial - 0.32%
Toyota Motor Credit Corp. 6.00% 2003 1,750 1,736 .32
Foriegn Governmental Authorities - 0.20%
KfW International Finance Inc. 7.625% 2004 1,000 1,050 .20
------------------
TOTAL BONDS & NOTES (cost: $528,892,000) 525,280 97.69
Short-Term Securities
Corporate Short-Term Notes - 3.62%
- --------------------------------------------
General Electric Capital Corp. 4.93% due 6/1/1999 19,500 19,497 3.62
------------------
TOTAL SHORT-TERM SECURITIES (cost: $19,497,000) 19,497 3.62
------------------
TOTAL INVESTMENT SECURITIES (cost:A28 $548,389,000) 544,777 101.31
Excess of payables over cash and receivables 7,056 1.31
------------------
NET ASSETS 537,721 100.00%
------------------
------------------
(1) Pass-through securities backed by a pool of mortgages
or other loans on which principal payments are periodically
made. Therfore, the effective maturity is shorter
than the stated maturity.
(2) Index-linked bond, which is a floating rate bond whose
principal amount moves with a government retail price index.
(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, 1999
<S> <C> <C> <C>
(Unaudited)
Principa Market
Amount Value Percent of
Short-Term Securities (000) (000) Net Assets
Corporate Short-Term Notes - 71.95%
Coca-Cola Co.:
4.75% due 6/24/1999 (1) $5,000 $4,984 2.56%
4.79% due 7/23/1999 3,100 3078
American Express Credit Corp. 4.80% due 6/14/1999 8,000 7985 2.53
Halliburton Co. 4.78%-4.85% due 6/17-7/28/1999 7,800 7767 2.46
Electronic Data Systems Corp. 4.78% due 6/3/1999 (1) 7,600 7597 2.41
Albertson's, Inc. 4.78%-4.79% due 6/4-6/7/1999 (1) 7,300 7295 2.32
Anheuser-Busch Cos, Inc. 4.76% due 6/2/1999 7,000 6998 2.22
Bell Atlantic Network Funding Corp. 4.77% due 6/10/1999 7,000 6991 2.22
Commercial Credit Co. 4.81% due 6/10/1999 7,000 6991 2.22
Ameritech Corp. 4.75%-4.76% due 6/11-6/23/1999 7,000 6,985 2.22
H.J. Heinz Co. 4.77%-4.79% due 6/15/-7/6/1999 7,000 6980 2.22
American General Finance Corp. 4.80% due 7/12/1999 7,000 6961 2.21
Equilon Enterprises LLC 4.81% due 6/3/1999 6,600 6597 2.09
Xerox Corp. 4.77%-4.80% due 6/7-6/18/1999 6,282 6269 1.99
Ford Motor Credit Co. 4.78% due 6/15/1999 6,000 5,988 1.90
Gannett Co. 4.77%-4.80% due 6/9-6/22/1999 (1) 6,000 5987 1.90
IBM Credit Corp. 4.80% due 7/22/1999 6,000 5,959 1.89
Sara Lee Corp. 4.76% due 6/11/1999 5,950 5,941 1.89
Motorola Credit Corp. 4.81% due 6/1/1999 5,900 5,899 1.87
CIT Group Holdings, Inc. 4.82% due 7/13/1999 5,900 5,866 1.86
Abbott Laboratories 4.75%-4.77% due 6/1-6/3/1999 5,800 5799 1.84
Campbell Soup Co. 4.78%-4.80% due 6/16-7/16/1999 5,700 5668 1.80
Schering Corp. 4.81% due 7/26/1999 5,600 5,558 1.76
A.I. Credit Corp. 4.77% due 6/2/1999 5,500 5499 1.75
BellSouth Telecommunications, Inc. 4.80% due 7/15/1999 5,100 5069 1.61
Bestfoods 4.77% due 6/7/1999 (1) 5,000 4995 1.59
Lucent Technologies Inc. 4.78% due 6/9/1999 5,000 4994 1.59
Pfizer Inc 4.75% due 6/14/1999 (1) 5,000 4,991 1.58
Kellogg Co. 4.76% due 6/18/1999 5,000 4,988 1.58
Harvard University 4.76% due 6/21/1999 5,000 4986 1.58
Procter & Gamble Co. 4.75% due 6/24/1999 5,000 4984 1.58
Household Finance Corp. 4.80% due 6/25/1999 5,000 4983 1.58
American Home Products Corp. 4.83% due 7/20/1999 (1) 5,000 4967 1.58
General Motors Acceptance Corp. 4.82% due 7/19/1999 5,000 4967 1.58
Eastman Kodak Co. 4.87% due 7/26/1999 5,000 4962 1.58
Johnson & Johnson 4.81% due 7/12/1999 (1) 4,800 4,773 1.52
Archer Daniels Midland Co. 4.78%-4.84% due 6/3-6/14/1999 4,300 4293 1.36
Associates First Capital Corp. 4.80% due 6/16/1999 4,200 4191 1.33
Vermont American Corp. 4.76% due 6/24/1999 (1) 3,700 3688 1.17
AT&T Corp 4.77% due 6/17/1999 2,000 1996 0.63
Chevron Corp. 4.84% due 6/25/1999 1,200 1196 0.38
Federal Agency Discount Notes - 28.39%
Freddie Mac 4.685%-4.77% due 6/4-7/16/1999 55,100 54901 17.43
Fannie Mae 4.68%-4.77% due 6/4-7/19/1999 23,000 22957 7.29
Federal Home Loan Banks 4.67%-4.71% due 6/11-7/2/1999 11,600 11571 3.67
-------------------
TOTAL INVESTMENT SECURITIES (cost: $316,094,000) 316094 100.34
Excess of payables over cash and receivables 1062 0.34
-------------------
NET ASSETS $315,032 100.00%
===================
(1) Purchased in a private placement transaction; resale to the
public may require registration or sale only to qualified
institutional buyers.
Federal Home
Loan Mortgage Corp. 5.41%-5.46% due 6/9-6/24/97
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
<S> <C> <C> <C> <C>
Statement of Assets and Liabilities
at May 31, 1999 (unaudited)
(dollars in thousands, except per-share
data) Global
Global Small Inter-
Growth Capitalizati Growth national
Fund Fund Fund Fund
- --------------------------------- ---------- ---------- --------------------
ASSETS:
Investment securities at market $372,124 $118,697 $6,913,972$2,923,357
Cash 80
Receivables for-
Sales of investments 19,789 1,615
Sales of fund's shares 41 123 94 189
Open forward currency
contracts - - -
Dividends and
interest 374 374 1,109 11,314
--------- ---------- --------- ----------
372,619 119,597 6,935,189 2,936,525
LIABILITIES: --------- ---------- --------- ----------
Payables for-
Purchases of investments 3,829 1,388 17,895 6,881
Repurchases of fund's shares 3,923 1,987
Management services 216 78 2,252 1,426
Distribution fees - Class 2
Other expenses 13 3 150 2,358
--------- ---------- --------- ----------
4,108 1,476 24,331 12,688
NET ASSETS AT ---------- ---------- --------------------
May 31, 1999 (Total $21,798,019) $368,511 $118,121 $6,910,858$2,923,837
===================== =====================
Investment securities at cost $318,567 $106,716 $4,423,332$2,150,989
===================== =====================
Class 1 (unlimited shares authorized):
Net assets (Total $19,613,585) $189,792 $82,677 $6,381,196$2,753,031
Shares of beneficial interest
outstanding 12,830,119 6,858,500 106,934,32147,574,479
Net asset value per share $14.79 $12.05 $59.67 $18.66
Class 2 (unlimited shares authorized):
Net assets (Total $21,184,434) $178,719 $35,444 $529,662 $170,806
Shares of beneficial interest
outstanding 12,089,257 2,943,624 8,881,243 9,167,004
Net asset value per share $14.78 $12.04 $59.64 $18.63
Statement of Assets and Liabilities
at May 31, 1999 (unaudited)
(dollars in thousands, except per-share
data)
Growth- Asset High-Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
- --------------------------------- ---------- ---------- --------------------
ASSETS:
Investment securities at market $7,886,493 $1,741,151 $238,309 $732,241
Cash 12 24 56 77
Receivables for-
Sales of investments 49,486 2,754 2,813
Sales of fund's shares 23 271 323
Open forward currency
contracts - - 125
Dividends and
interest 14,708 10,161 3,783 14,424
--------- ---------- --------- ----------
7,950,722 1,754,361 243,308 749,680
LIABILITIES: --------- ---------- --------- ----------
Payables for-
Purchases of investments 49,722 7,229 2,636 4,144
Repurchases of fund's shares 461
Management services 2,281 644 105 320
Distribution fees - Class 2
Other expenses 215 51 7 32
--------- ---------- --------- ----------
57,417 8,981 2,760 4,974
NET ASSETS AT ---------- ---------- --------------------
May 31, 1999 (Total $21,798,019) $7,893,305 $1,745,380 $240,548 $744,706
===================== =====================
Investment securities at cost $6,273,213 $1,438,494 $246,561 $776,519
===================== =====================
Class 1 (unlimited shares authorized):
Net assets (Total $19,613,585) $7,078,704 $1,504,573 $182,752 $662,679
Shares of beneficial interest
outstanding 180,678,90 92,833,012 18,136,49349,425,310
Net asset value per share $39.18 $16.21 $10.08 $13.41
Class 2 (unlimited shares authorized):
Net assets (Total $21,184,434) $814,601 $240,807 $57,796 $82,027
Shares of beneficial interest
outstanding 20,805,084 14,867,993 5,739,485 6,121,943
Net asset value per share $39.15 $16.20 $10.07 $13.40
Statement of Assets and Liabilities
at May 31, 1999 (unaudited)
(dollars in thousands, except per-s U.S.
data) Government/
AAA-Rated Cash
Securities Management
Fund Fund
- --------------------------------- ---------- ----------
ASSETS:
Investment securities at market $544,777 $316,094
Cash 99 139
Receivables for-
Sales of investments 1,555 -
Sales of fund's shares 953 -
Open forward currency
contracts - -
Dividends and
interest 4,239 -
--------- ----------
551,623 316,233
LIABILITIES: --------- ----------
Payables for-
Purchases of investments 13,635 -
Repurchases of fund's shares 1,067
Management services 233 116
Distribution fees - Class 2 8
Other expenses 21 10
--------- ----------
13,902 1,201
NET ASSETS AT ---------- ----------
May 31, 1999 (Total $21,798,019) $537,721 $315,032
=====================
Investment securities at cost $548,389 $316,094
=====================
Class 1 (unlimited shares authorized):
Net assets (Total $19,613,585) $499,421 $278,760
Shares of beneficial interest
outstanding 45,201,808 25,106,149
Net asset value per share $11.05 $11.10
Class 2 (unlimited shares authorized):
Net assets (Total $21,184,434) $38,300 $36,272
Shares of beneficial interest
outstanding 3,468,672 3,268,948
Net asset value per share $11.04 $11.10
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
<S> <C> <C> <C> <C>
Statement of Operations
for the six months ended May 31, 1999
(unaudited)
(dollars in thousands)
Global
Global Small Inter-
Growth Capitalizati Growth national
Fund Fund Fund Fund
---------- ---------- -------------------
INVESTMENT INCOME:
Income:
Dividends $1,551 $575 $9,753 $28,210
Interest 1,232 342 9,349 4,964
---------- ---------- -------------------
2,783 917 19,102 33,174
---------- ---------- -------------------
Expenses:
Management services fee 1,096 385 12,406 8,130
Distribution fees - Class 2 191 33 528 188
Reports to shareholders 6 2 122 54
Registration statement and
prospectus 3 2 52 21
Postage, stationery and
supplies 1 32 15
Trustees' fees 2 33 16
Auditing and legal fees 3 1 62 30
Custodian fee 39 9 48 790
Taxes other than federal
income tax 4 1 87 35
Other expenses 2 1 37 42
---------- ---------- -------------------
1,347 434 13,407 9,321
---------- ---------- -------------------
Net investment income 1,436 483 5,695 23,853
---------- ---------- -------------------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 17,949 11,312 580,613 217,486
---------- ---------- -------------------
Net change in unrealized appreciation
(depreciation) on investments 28,130 15,688 866,151 155,210
Net change in unrealized appreciation
on open forward currency contract - - - -
---------- ---------- -------------------
Net unrealized appreciation
(depreciation) 28,130 15,688 866,151 155,210
---------- ---------- -------------------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 46,079 27,000 1,446,764 372,696
---------- ---------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $47,515 $27,483 $1,452,45$396,549
========= ========= ====================
High-
Growth- Asset Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
--------- ---------- -------------------
INVESTMENT INCOME:
Income:
Dividends $58,385 $10,460 $ 182 $433
Interest 21,076 23,584 8,690 37,478
---------- ---------- -------------------
79,461 34,044 8,872 37,911
---------- ---------- -------------------
Expenses:
Management services fee 12,894 3,675 598 1,893
Distribution fees - Class 2 851 256 64 93
Reports to shareholders 141 32 5 14
Registration statement and
prospectus 52 14 2 6
Postage, stationery and
supplies 41 9 1 4
Trustees' fees 42 10 1 4
Auditing and legal fees 79 18 3 9
Custodian fee 74 20 7 12
Taxes other than federal
income tax 91 20 3 9
Other expenses 38 11 1 6
---------- ---------- -------------------
14,303 4,065 685 2,050
---------- ---------- -------------------
Net investment income 65,158 29,979 8,187 35,861
---------- ---------- -------------------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 732,045 59,338 297 (4,764)
---------- ---------- -------------------
Net change in unrealized appreciation
(depreciation) on investments 147,004 24,787 (6,438) (4,875)
Net change in unrealized appreciation
on open forward currency contract 5 134
---------- ----------- -------------------
Net unrealized appreciation
(depreciation) 147,004 24,787 (6,433) (4,741)
---------- ----------- -------------------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 879,049 84,125 (6,136) (9,505)
---------- ---------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $944,207 $114,104 $2,051 $26,356
========= ========= ==================
U.S.
Government/ Cash
AAA-Rated Manage-
Securities ment
Fund Fund
------------- ----------
INVESTMENT INCOME:
Income:
Dividends -
Interest $18,027 $7,379
---------- ----------
18,027 7,379
---------- ----------
Expenses:
Management services fee 1,407 664
Distribution fees - Class 2 45 45
Reports to shareholders 10 6
Registration statement and
prospectus 3
Postage, stationery and
supplies 3 2
Trustees' fees 3 2
Auditing and legal fees 6 3
Custodian fee 6 3
Taxes other than federal
income tax 7 3
Other expenses 4 3
---------- ----------
1,496 734
---------- ----------
Net investment income 16,531 6,645
---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 121 -
---------- ----------
Net change in unrealized appreciation
(depreciation) on investments (19,157) -
Net change in unrealized appreciation
on open forward currency contract - -
------------- ----------
Net unrealized appreciation
(depreciation) (19,157) -
------------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments (19,036) -
---------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($2,505) $6,645
============= =========
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 Global Capitalization
(dollars in thousands) Growth Fund Fund
----------- ------------------------------------
Six months Year ended Six months Period ended
ended November 30 ended November 30,
May 31, 1998 May 31, 1998 (2)
1999 (1) 1999 (1)
- ---------------------------------- ----------- ---------------------- -----------
OPERATIONS:
Net investment income $1,436 $1,980 $483 $409
Net realized gain (loss) on investments 17,949 9,087 11,312 925
Net unrealized appreciation (depreciation)
on investments 28,130 26,951 15,688 (3,708)
----------- ---------------------- -----------
Net increase (decrease) in net assets
resulting from operations 47,515 38,018 27,483 (2,374)
----------- ---------------------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (511) (1,226) (178) (194)
Class 2 (307) (766) (48) (36)
----------- ---------------------- -----------
Total dividends from net investment income (818) (1,992) (226) (230)
Distributions from net realized gain on
investments (8,908) (277) (1,116) -
----------- ---------------------- -----------
Total dividends and distributions (9,726) (2,269) (1,342) (230)
----------- ---------------------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 36,781 45,339 16,696 50,353
Proceeds from shares issued on reinvestment
of dividends and distributions 5,115 1,395 194
Cost of shares repurchased (3,453) (15,055) (2,874)
----------- ---------------------- -----------
Net increase (decrease) from Class 1 38,443 31,679 8,727 47,673
transactions
----------- ---------------------- -----------
Class 2:
Proceeds from shares sold 33,503 61,131 10,960 17,199
Proceeds from shares issued on reinvestment
of dividends and distributions 4,611 874 321 36
Cost of shares repurchased (1,137) (893) (270) (62)
----------- ---------------------- -----------
Net increase from Class 2 transactions 36,977 61,112 11,011 17,173
Net increase (decrease) in net ----------- ---------------------- -----------
assets resulting from capital share
transactions 75,420 92,791 19,738 64,846
----------- ---------------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 113,209 128,540 45,879 62,242
NET ASSETS:
Beginning of period 255,302 126,762 72,242 10,000 (3)
----------- ---------------------- -----------
End of period $368,511 $255,302 $118,121 $72,242
============ ===================================
Undistributed net investment income $914 $296 $439 $182
============ ===================================
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 2,575,531 3,748,614 1,553,790 5,351,886
Shares issued on reinvestment of dividends
and distributions 384,819 118,716 23,072
Shares repurchased (242,213)(1,315,104) (819,122) (355,692)
----------- ---------------------- -----------
Net increase (decrease) in shares outstanding 2,718,137 2,552,226 839,234 5,019,266
============ ===================================
Class 2:
Shares sold 2,324,231 5,120,157 1,023,272 1,915,704
Shares issued on reinvestment of dividends
and distributions 347,548 73,850 32,884 4,349
Shares repurchased (79,481) (78,598) (24,733) (7,852)
----------- ---------------------- -----------
Net increase in shares outstanding 2,592,298 5,115,409 1,031,423 1,912,201
============ ===================================
Statement of Changes in Net Assets International
(dollars in thousands) Growth Fund Fund
----------- -----------------------------------
Six months Year ended Six months Year ended
ended November 30 ended November 30,
May 31, 1998 May 31, 1998
1999 (1) 1999 (1)
- ---------------------------------- ----------- ---------------------- -----------
OPERATIONS:
Net investment income $5,695 $19,359 $23,853 $37,231
Net realized gain (loss) on investments 580,613 847,243 217,486 47,635
Net unrealized appreciation (depreciation)
on investments 866,151 296,599 155,210 335,472
----------- ---------------------- -----------
Net increase (decrease) in net assets
resulting from operations 1,452,459 1,163,201 396,549 420,338
----------- ---------------------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (10,898) (16,761) (6,347) (45,333)
Class 2 (246) (125) (250) (1,201)
----------- ---------------------- -----------
Total dividends from net investment income (11,144) (16,886) (6,597) (46,534)
Distributions from net realized gain on
investments (825,168) (580,855) (50,248) (272,318)
----------- ---------------------- -----------
Total dividends and distributions (836,312) (597,741) (56,845) (318,852)
----------- ---------------------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 51,381 109,347 14,557 41,886
Proceeds from shares issued on reinvestment
of dividends and distributions 788,630 586,639 54,179 312,120
Cost of shares repurchased (348,319) (589,670) (231,309) (471,251)
----------- ---------------------- -----------
Net increase (decrease) from Class 1 491,692 106,316 (162,573) (117,245)
transactions
----------- ---------------------- -----------
Class 2:
Proceeds from shares sold 132,804 195,304 26,455 68,884
Proceeds from shares issued on reinvestment
of dividends and distributions 47,682 11,102 2,666 6,732
Cost of shares repurchased (575) (457) (1,128) (1,263)
----------- ---------------------- -----------
Net increase from Class 2 transactions 179,911 205,949 27,993 74,353
Net increase (decrease) in net ----------- ---------------------- -----------
assets resulting from capital share
transactions 671,603 312,265 (134,580) (42,892)
----------- ---------------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,287,750 877,725 205,124 58,594
NET ASSETS:
Beginning of period 5,623,108 4,745,383 2,718,713 2,660,119
----------- ---------------------- -----------
End of period $6,910,858 $5,623,108 $2,923,837 $2,718,713
============ ===================================
Undistributed net investment income $1,642 $7,091 $16,881 ($375)
============ ===================================
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 896,378 2,196,906 792,140 2,567,211
Shares issued on reinvestment of dividends
and distributions 15,431,837 13,311,288 3,194,508 21,440,773
Shares repurchased (6,141,022)(11,951,567(12,877,879)(30,137,030)
----------- ---------------------- -----------
Net increase (decrease) in shares outstanding 10,187,193 3,556,627 (8,891,231)(6,129,046)
============ ===================================
Class 2:
Shares sold 2,299,716 3,926,116 1,458,984 4,258,892
Shares issued on reinvestment of dividends
and distributions 933,831 252,355 157,298 460,573
Shares repurchased (10,150) (10,179) (61,972) (83,746)
----------- ---------------------- -----------
Net increase in shares outstanding 3,223,397 4,168,292 1,554,310 4,635,719
============ ===================================
Asset
Statement of Changes in Net Assets Growth- Allocation
(dollars in thousands) Income Fund Fund
----------- ---------------------- ------------
Six months Year ended Six months Year ended
ended November 30 ended November 30,
May 31, 1998 May 31, 1998
1999 (1) 1999 (1)
- ---------------------------------- ----------- ---------------------- -----------
OPERATIONS:
Net investment income $65,158 $119,829 $29,979 $57,128
Net realized gain (loss) on investments 732,045 1,068,839 59,338 115,877
Net unrealized appreciation (depreciation)
on investments 147,004 (236,509) 24,787 6,383
----------- ---------------------- -----------
Net increase (decrease) in net assets
resulting from operations 944,207 952,159 114,104 179,388
----------- ---------------------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (53,862) (115,861) (25,790) (51,238)
Class 2 (4,366) (5,220) (3,162) (3,336)
----------- ---------------------- -----------
Total dividends from net investment income (58,228) (121,081) (28,952) (54,574)
Distributions from net realized gain on
investments (1,064,215) (633,062) (115,203) (78,277)
----------- ---------------------- -----------
Total dividends and distributions (1,122,443) (754,143) (144,155) (132,851)
----------- ---------------------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 14,397 79,575 10,891 55,514
Proceeds from shares issued on reinvestment
of dividends and distributions 1,032,113 730,769 128,513 126,847
Cost of shares repurchased (501,752) (713,841) (104,723) (120,895)
----------- ---------------------- -----------
Net increase (decrease) from Class 1 544,758 96,503 34,681 61,466
transactions
----------- ---------------------- -----------
Class 2:
Proceeds from shares sold 169,068 363,643 55,262 121,817
Proceeds from shares issued on reinvestment
of dividends and distributions 90,330 23,374 15,642 6,004
Cost of shares repurchased (332) (829) (765) (195)
----------- ---------------------- -----------
Net increase from Class 2 transactions 259,066 386,188 70,139 127,626
Net increase (decrease) in net ----------- ---------------------- -----------
assets resulting from capital share
transactions 803,824 482,691 104,820 189,092
----------- ---------------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 625,588 680,707 74,769 235,629
NET ASSETS:
Beginning of period 7,267,717 6,587,010 1,670,611 1,434,982
----------- ---------------------- -----------
End of period $7,893,305 $7,267,717 $1,745,380 $1,670,611
============ ===================================
Undistributed net investment income $35,323 $28,393 $15,750 $14,723
============ ===================================
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 381,142 2,066,094 685,175 3,472,672
Shares issued on reinvestment of dividends
and distributions 28,899,632 20,193,738 8,320,875 8,206,467
Shares repurchased (13,202,820)(18,531,056 (6,536,770)(7,525,015)
----------- ---------------------- -----------
Net increase (decrease) in shares outstanding 16,077,954 3,728,776 2,469,280 4,154,124
============ ===================================
Class 2:
Shares sold 4,431,854 9,296,520 3,441,538 7,514,429
Shares issued on reinvestment of dividends
and distributions 2,529,995 643,598 1,013,206 385,691
Shares repurchased (8,989) (23,804) (47,418) (12,673)
----------- ---------------------- -----------
Net increase in shares outstanding 6,952,860 9,916,314 4,407,326 7,887,447
============ ===================================
Statement of Changes in Net Assets High-Yield
(dollars in thousands) Bond Fund Bond Fund
----------- ---------------------- ------------
Six months Year ended Six months Year ended
ended November 30 ended November 30,
May 31, 1998 May 31, 1998
1999 (1) 1999 (1)
- ---------------------------------- ----------- ---------------------- -----------
OPERATIONS:
Net investment income $8,187 $12,668 $35,861 $70,319
Net realized gain (loss) on investments 297 1,054 (4,764) 6,948
Net unrealized appreciation (depreciation)
on investments (6,433) (4,888) (4,741) (66,774)
----------- ---------------------- -----------
Net increase (decrease) in net assets
resulting from operations 2,051 8,834 26,356 10,493
----------- ---------------------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (6,003) (9,573) (31,582) (65,776)
Class 2 (1,585) (1,605) (3,235) (3,726)
----------- ---------------------- -----------
Total dividends from net investment income (7,588) (11,178) (34,817) (69,502)
Distributions from net realized gain on
investments (1,079) (1,717) (10,694) (8,320)
----------- ---------------------- -----------
Total dividends and distributions (8,667) (12,895) (45,511) (77,822)
----------- ---------------------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 11,894 64,860 13,004 45,293
Proceeds from shares issued on reinvestment
of dividends and distributions 6,863 11,132 41,311 73,843
Cost of shares repurchased (16,952) (18,584) (88,930) (107,252)
----------- ---------------------- -----------
Net increase (decrease) from Class 1 1,805 57,408 (34,615) 11,884
transactions
----------- ---------------------- -----------
Class 2:
Proceeds from shares sold 13,574 33,674 13,853 49,128
Proceeds from shares issued on reinvestment
of dividends and distributions 1,804 1,763 4,200 3,979
Cost of shares repurchased (1,298) (1,431) (1,879) (1,418)
----------- ---------------------- -----------
Net increase from Class 2 transactions 14,080 34,006 16,174 51,689
Net increase (decrease) in net ----------- ---------------------- -----------
assets resulting from capital share
transactions 15,885 91,414 (18,441) 63,573
----------- ---------------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 9,269 87,353 (37,596) (3,756)
NET ASSETS:
Beginning of period 231,279 143,926 782,302 786,058
----------- ---------------------- -----------
End of period $240,548 $231,279 $744,706 $782,302
============ ===================================
Undistributed net investment income $4,105 $3,506 $18,788 $17,744
============ ===================================
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,163,124 6,220,296 964,459 3,143,506
Shares issued on reinvestment of dividends
and distributions 680,037 1,070,589 3,120,199 5,138,832
Shares repurchased (1,657,130)(1,789,981) (6,576,462)(7,540,786)
----------- ---------------------- -----------
Net increase (decrease) in shares outstanding 186,031 5,500,904 (2,491,804) 741,552
============ ===================================
Class 2:
Shares sold 1,328,200 3,219,589 1,025,308 3,361,669
Shares issued on reinvestment of dividends
and distributions 178,826 169,961 317,397 280,937
Shares repurchased (127,224) (137,744) (139,091) (105,506)
----------- ---------------------- -----------
Net increase in shares outstanding 1,379,802 3,251,806 1,203,614 3,537,100
============ ===================================
U.S.
Government/
AAA-Rated Cash
Statement of Changes in Net Assets Securities Management
(dollars in thousands) Fund Fund
---------- -----------------------------------
Six months Year ended Six months Year ended
ended November 30 ended November 30,
May 31, 1998 May 31, 1998
1999 (1) 1999 (1)
- ---------------------------------- ----------- ---------------------- -----------
OPERATIONS:
Net investment income $16,531 $30,885 $6,645 $13,045
Net realized gain (loss) on investments 121 4,748 - 1
Net unrealized appreciation (depreciation)
on investments (19,157) 5,763 - -
----------- ---------------------- -----------
Net increase (decrease) in net assets
resulting from operations (2,505) 41,396 6,645 13,046
----------- ---------------------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (15,254) (29,472) (6,356) (11,431)
Class 2 (980) (938) (850) (984)
----------- ---------------------- -----------
Total dividends from net investment income (16,234) (30,410) (7,206) (12,415)
Distributions from net realized gain on
investments - - - -
----------- ---------------------- -----------
Total dividends and distributions (16,234) (30,410) (7,206) (12,415)
----------- ---------------------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 19,327 97,521 133,218 269,818
Proceeds from shares issued on reinvestment
of dividends and distributions 15,254 29,472 6,356 11,431
Cost of shares repurchased (54,449) (71,432) (109,736) (258,426)
----------- ---------------------- -----------
Net increase (decrease) from Class 1 (19,868) 55,561 29,838 22,823
transactions
----------- ---------------------- -----------
Class 2:
Proceeds from shares sold 10,117 26,930 19,884 40,995
Proceeds from shares issued on reinvestment
of dividends and distributions 980 938 850 984
Cost of shares repurchased (3,598) (3,235) (18,495) (21,792)
----------- ---------------------- -----------
Net increase from Class 2 transactions 7,499 24,633 2,239 20,187
Net increase (decrease) in net ----------- ---------------------- -----------
assets resulting from capital share
transactions (12,369) 80,194 32,077 43,010
----------- ---------------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS (31,108) 91,180 31,516 43,641
NET ASSETS:
Beginning of period 568,829 477,649 283,516 239,875
----------- ---------------------- -----------
End of period $537,721 $568,829 $315,032 $283,516
============ ===================================
Undistributed net investment income $8,233 $7,936 $3,410 $3,971
============ ===================================
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,713,832 8,582,116 12,013,762 24,352,691
Shares issued on reinvestment of dividends
and distributions 1,364,633 2,630,834 576,848 1,037,352
Shares repurchased (4,850,318)(6,349,283) (9,891,015)(23,299,957)
----------- ---------------------- -----------
Net increase (decrease) in shares outstanding (1,771,853) 4,863,667 2,699,595 2,090,086
============ ===================================
Class 2:
Shares sold 896,111 2,379,800 1,794,863 3,700,810
Shares issued on reinvestment of dividends
and distributions 87,756 83,414 77,114 89,256
Shares repurchased (320,149) (287,245) (1,669,880)(1,966,921)
----------- ---------------------- -----------
Net increase in shares outstanding 663,718 2,175,969 202,097 1,823,145
============ ===================================
(1) Unaudited
(2) For the period April 30, 1998, commencement
of operations, through November 30, 1998.
(3) Represents initial capitalization from
the sale of 1,000,000 Class 1 shares of
beneficial interest.
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - American Variable Insurance Series (the "series") is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company with 10 different funds. 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
United States 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 specific 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.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies consistently followed by the series in the preparation of its
financial statements:
SECURITY VALUATION - 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. The ability of the issuers of the debt securities held by the series to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Short-term securities maturing within 60 days are
valued at amortized cost, which approximates market value. Forward currency
contracts are valued at the mean of their representative quoted bid and asked
prices. 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.
NON-U.S. CURRENCY TRANSLATION - Assets and liabilities initially expressed in
terms of non-U.S. 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 non-U.S. currency exchange rates on investment securities and other
assets and liabilities are included with the net realized and unrealized gain
or loss on investment securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or "when-issued" basis, the
series will instruct the custodian to segregate liquid assets in an amount
sufficient to meet its payment obligations in these transactions. Dividend
income is recognized on the ex-dividend date, and interest income is recognized
on an accrual basis. Market discounts, premiums and original issue discounts on
securities purchased are amortized daily over the expected life of the
security.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions paid
to shareholders are recorded on the ex-dividend date.
FORWARD CURRENCY CONTRACTS - 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. Purchases and sales of forward currency exchange
contracts having the same settlement date and broker are offset and presented
net in the statement of assets and liabilities.
COMMON EXPENSES - 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. NON-U.S. INVESTMENT RISKS
Investments in securities of non-U.S. issuers in certain countries involve
special investment risks. These risks may include, but are not limited to,
investment and repatriation restrictions, revaluation of currencies, adverse
political, social, and economic developments, government involvement in the
private sector, limited and less reliable investor information, lack of
liquidity, certain local tax law considerations, and limited regulation of the
securities markets.
3. FEDERAL INCOME TAXATION The series
complies with the requirements of the Internal Revenue Code applicable to
regulated investment companies and intends to distribute all of its net taxable
income and net capital gains for the fiscal year. As a regulated investment
company, the series is not subject to income taxes if such distributions are
made. Required distributions are determined on a tax basis and may differ from
net investment income and net realized gains for financial reporting purposes.
In addition, the fiscal year in which amounts are distributed may differ from
the year in which the net investment income and net realized gains are recorded
by the series.
The U.S. Government/AAA-Rated Securities Fund had available at the beginning
of its fiscal year a net capital loss carryforward totaling $15,528,000, which
may be used to offset capital gains realized during subsequent years through
November 30, 2005, and thereby relieve the fund and its shareholders of any
federal income tax liability with respect to the capital gains that are so
offset. The fund will not make distributions from capital gains while a capital
loss carryforward remains.
Additional tax basis disclosures for and as of the six months ended May 31,
1999 are as follows:
<TABLE>
Global Global Small
Growth Capitalizati Growth Interna-
Fund Fund Fund tional Fund
<S> <C> <C> <C> <C>
For the six months ended
May 31, 1999
Tax basis net capital
gain (loss) $17,937 $11,179 $580,403$211,036
Tax basis net currency
gain (loss) 12 - 207 23
As of May 31, 1999 (tax
basis amounts,
excluding forward
currency contracts):
Unrealized
appreciation 66,698 21,949 2,682,44 876,233
Unrealized
depreciation 13,141 9,968 191,806 103,865
Net unrealized
appreciation
(depreciation) 53,557 11,981 2,490,64 772,368
Cost of portfolio
securities 318,567 106,716 4,423,332,150,989
Growth- Asset High-Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
For the six months ended
May 31, 1999
Tax basis net capital
gain (loss) $732,041 $59,374 $323 ($9,822)
Tax basis net currency
gain (loss) 4 (36) (21) 1,290
As of May 31, 1999 (tax
basis amounts,
excluding forward
currency contracts):
Unrealized
appreciation 1,917,490 354,933 2,999 30,743
Unrealized
depreciation 304,210 52,276 11,251 75,021
Net unrealized
appreciation
(depreciation) 1,613,280 302,657 (8,252) (44,278)
Cost of portfolio
securities 6,273,213 1,438,494 246,561 776,519
U.S. Governmen Cash
AAA-Rated Management
Securities Fun Fund
For the six months ended
May 31, 1999
Tax basis net capital
gain (loss) $121 -
Tax basis net currency
gain (loss) - -
As of May 31, 1999 (tax
basis amounts,
excluding forward
currency contracts):
Unrealized
appreciation 4,463 -
Unrealized
depreciation 8,075 -
Net unrealized
appreciation
(depreciation) (3,612) -
Cost of portfolio
securities 548,389 $316,094
</TABLE>
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fees for management services were incurred
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 the
first $600 million of average net assets; 0.59% of such assets in excess of
$600 million but not exceeding $1.2 billion; and 0.53% of such assets in excess
of $1.2 billion; Global Small Capitalization Fund - 0.80% of the first $600
million of average net assets; and 0.74% of such assets in excess of $600
million; 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;
0.35% of such assets in excess of $3.2 billion but not exceeding $5.2 billion;
0.33% of such assets in excess of $5.2 billion but not exceeding $8.4 billion;
and 0.315% of such assets in excess of $8.4 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; 0.285% of such assets in excess of $4.0 billion but not
exceeding $6.5 billion; 0.256% of such assets in excess of $6.5 billion but not
exceeding $10.5 billion; and 0.242% of such assets in excess of $10.5 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;
0.36% of such assets in excess of $1.2 billion but not exceeding $2.0 billion;
and 0.32% of such assets in excess of $2.0 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.
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution, each fund may
expend 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, 1999, distribution expenses under the Plan for the series
aggregated $2,294,000. As of May 31, 1999, accrued and unpaid distribution
expenses were $460,000.
DEFERRED TRUSTEES' FEES - 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 31,1999, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993) net of any payments to
Trustees were $518,000. Certain Trustees and officers of the series are or may
be considered to be affiliated with CRMC. No such persons received any
remuneration directly from the series.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The following table presents additional information for and as of May 31,
1999:
<TABLE>
<S> <C> <C> <C> <C>
Global Global Small
Growth Capitalizati Growth Interna-
Fund Fund Fund tional Fund
For the six months ended
May 31,1999:
Purchases of
investment
securities (1) $101,407 $65,875 $1,2872744 $739,366
Sales of invest-
ment securities (1) 50,595 45,207 1,349,73 886,091
Book basis net currency
gain (loss) on dividends,
interest, withholding
taxes reclaimable, and
sale of non-U.S. bonds 12 - 210 34
As of May 31, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments $17,755 $11,118 $582,836$217,612
Paid-in capital 296,290 94,584 3,835,741,919,288
Growth- Asset High-Yield
Income Allocation Bond Bond
Fund Fund Fund Fund
For the six months ended
May 31,1999:
Purchases of
investment
securities (1) $1,567,891 $358,695 $70,954 $159,422
Sales of invest-
ment securities (1) 1,932,306 336,496 53,624 168,416
Book basis net currency
gain (loss) on dividends,
interest, withholding
taxes reclaimable, and
sale of non-U.S. bonds 4 (36) (135) (202)
As of May 31, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments $735,139 $59,586 $280 ($8,632)
Paid-in capital 5,509,588 1,367,387 244,394 778,702
U.S. Governmen Cash
AAA-Rated Management
Securities Fun Fund
For the six months ended
May 31,1999:
Purchases of
investment
securities (1) $187,280 -
Sales of invest-
ment securities (1) 186,995 -
Book basis net currency
gain (loss) on dividends,
interest, withholding
taxes reclaimable, and
sale of non-U.S. bonds - -
As of May 31, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments $ (15,536) $1
Paid-in capital 548,636 311,621
(1) Excludes short-
term securities
</TABLE>
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 $1,008,000, of
which $42,000 was paid by these credits rather than in cash.
Dividend and interest income for the Global Growth Fund, the Global Small
Capitalization Fund and the International Fund is recorded net of non-U.S.
taxes paid. For the six months ended May 31, 1999, such non-U.S. taxes were
$154,000, $20,000 and $3,487,000, respectively.
At May 31, 1999, the Bond Fund and the High-Yield Bond Fund had outstanding
forward currency contracts to sell non-U.S. currencies as follows:
<TABLE>
Non-U.S. Currency Sale Contracts U.S.
Contract Valuation
Amount at 5/31/99
-------------------- -----------------
Unrealized
Appreciation
Fund Non-U.S. U.S. Amount
-------------- --------------- -----------------------------------------
<S> <C> <C> <C> <C> <C>
Euro
expiring 8/25/1999 Bond EUR 1,375,000$ 1,464,000$ 1,440,000 $ 24,000
expiring 8/3-8/25/1999 High-Yield Bon 5,321,000 5,670,000 5,568,000 102,000
Great British Pound
expiring 6/22/1999-8/10/19High-Yield Bon GBP 6,696,000 10,763,000 10,717,000 46,000
</TABLE>
<TABLE>
PER-SHARE
DATA AND
RATIOS
<S> <C> <C> <C> <C> <c<C>
Net gains
(losses) on Total
Net asse Net securities from
value, invest- (both realiz invest-
Period beginnin ment and ment
Ended (1) of perio income unrealized) operations
- --------- ---------------- --------- ---------
Global Growth Fund (2)
Class 1
1997 $10.00 $.06 $ .59 $ .65
1998 10.62 .13 2.43 2.56
1999 13.02 .07 2.19 2.26
Class 2 (4)
1997 10.00 .03 .60 .63
1998 10.61 .10 2.44 2.54
1999 13.02 .05 2.18 2.23
Global Small Capitalization Fund (5)
Class 1
1998 $10.00 $.07 $(.92) $(.85)
1999 9.11 .05 3.05 3.10
Class 2
1998 10.00 .04 (.91) (.87)
1999 9.10 .04 3.05 3.09
Growth Fund
Class 1
1994 $32.34 $.24 $ .69 $ .93
1995 31.94 .33 10.63 10.96
1996 41.81 .24 5.17 5.41
1997 43.53 .27 9.61 9.88
1998 50.12 .19 10.91 11.10
1999 54.91 .06 12.92 12.98
Class 2 (4)
1997 40.59 .11 9.51 9.62
1998 50.09 .08 10.90 10.98
1999 54.88 (.01) 12.92 12.91
International Fund
Class 1
1994 $12.40 $.25 $ 1.04 $ 1.29
1995 13.27 .34 1.02 1.36
1996 13.89 .28 1.96 2.24
1997 15.53 .25 1.18 1.43
1998 16.07 .22 2.21 2.43
1999 16.57 .15 2.29 2.44
Class 2 (4)
1997 15.86 .13 .23 .36
1998 16.06 .20 2.19 2.39
1999 16.56 .13 2.28 2.41
Growth Income Fund
Class 1
1994 $26.01 $.68 $ .14 $ .82
1995 25.30 .73 7.20 7.93
1996 31.47 .71 5.55 6.26
1997 35.73 .73 6.78 7.51
1998 39.97 .67 4.60 5.27
1999 40.73 .33 4.43 4.76
Class 2 (4)
1997 34.10 .37 5.82 6.19
1998 39.94 .58 4.60 5.18
1999 40.70 .29 4.42 4.71
Asset Allocation Fund
Class 1
1994 $12.01 $.51 $ (.57) $ (.06)
1995 11.25 .50 2.69 3.19
1996 13.77 .53 1.89 2.42
1997 15.18 .55 1.94 2.49
1998 16.16 .58 1.27 1.85
1999 16.57 .29 .78 1.07
Class 2 (4)
1997 14.43 .29 1.69 1.98
1998 16.15 .53 1.28 1.81
1999 16.56 .27 .78 1.05
Bond Fund (6)
Class 1
1996 $10.00 $.40 $.16 $.56
1997 10.31 .63 .30 .93
1998 10.62 .67 (.15) .52
1999 10.37 .36 (.26) .10
Class 2 (4)
1997 10.11 .35 .46 .81
1998 10.61 .65 (.15) .50
1999 10.36 .34 (.25) .09
High-Yield Bond Fund
Class 1
1994 $15.17 $1.27 $(2.07) $ (.80)
1995 12.89 1.32 1.10 2.42
1996 13.99 1.28 .54 1.82
1997 14.51 1.29 .43 1.72
1998 14.96 1.26 (1.04) .22
1999 13.77 .65 (.20) .45
Class 2 (4)
1997 14.28 .69 .61 1.30
1998 14.95 1.25 (1.06) .19
1999 13.76 .63 (.19) .44
U.S. Government/AAA-Rated Securities Fund
Class 1
1994 $12.15 $.76 $(1.30) $(.54)
1995 10.80 .82 .71 1.53
1996 11.52 .83 (.24) .59
1997 11.29 .76 (.07) .69
1998 11.18 .68 .26 .94
1999 11.43 .34 (.39) (.05)
Class 2 (4)
1997 10.83 .38 .33 .71
1998 11.17 .68 .24 .92
1999 11.42 .32 (.39) (.07)
Cash Management Fund
Class 1
1994 $11.02 $.37 $ .02 $.39
1995 11.09 .63 (.02) .61
1996 11.11 .54 .01 .55
1997 11.12 .57 (.01) .56
1998 11.13 .57 (.01) .56
1999 11.13 .24 .01 .25
Class 2 (4)
1997 11.07 .28 .03 .31
1998 11.12 .55 (.02) .53
1999 11.12 .23 .01 .24
DividendDistri-
(from nebutions Net asset
invest- (from Total value,
Period ment capital distri- end of
Ended (1) income) gains) butions period
- --------- ---------------- --------- ---------
Global Growth Fund (2)
Class 1
1997 $(.03) - $(.03) $10.62
1998 (.14) $(.02) (.16) 13.02
1999 (.05) (.44) (.49) 14.79
Class 2 (4)
1997 (.02) - (.02) 10.61
1998 (.11) (.02) (.13) 13.02
1999 (.03) (.44) (.47) 14.78
Global Small Capitalization Fund (5)
Class 1
1998 $(.04) $(.04) $ 9.11
1999 (.03) $(.13) (.16) 12.05
Class 2
1998 (.03) (.03) 9.10
1999 (.02) (.13) (.15) 12.04
Growth Fund
Class 1
1994 $(.24) $(1.09) $(1.33) $ 31.94
1995 (.29) (.80) (1.09) 41.81
1996 (.29) (3.40) (3.69) 43.53
1997 (.27) (3.02) (3.29) 50.12
1998 (.17) (6.14) (6.31) 54.91
1999 (.11) (8.11) (8.22) 59.67
Class 2 (4)
1997 (.12) - (.12) 50.09
1998 (.05) (6.14) (6.19) 54.88
1999 (.04) (8.11) (8.15) 59.64
International Fund
Class 1
1994 $(.20) $ (.22) $ (.42) $ 13.27
1995 (.33) (.41) (.74) 13.89
1996 (.31) (.29) (.60) 15.53
1997 (.27) (.62) (.89) 16.07
1998 (.28) (1.65) (1.93) 16.57
1999 (.04) (.31) (.35) 18.66
Class 2 (4)
1997 (.16) - (.16) 16.06
1998 (.24) (1.65) (1.89) 16.56
1999 (.03) (.31) (.34) 18.63
Growth Income Fund
Class 1
1994 $(.65) $ (.88) $(1.53) $ 25.30
1995 (.73) (1.03) (1.76) 31.47
1996 (.74) (1.26) (2.00) 35.73
1997 (.72) (2.55) (3.27) 39.97
1998 (.68) (3.83) (4.51) 40.73
1999 (.31) (6.00) (6.31) 39.18
Class 2 (4)
1997 (.35) - (.35) 39.94
1998 (.59) (3.83) (4.42) 40.70
1999 (.26) (6.00) (6.26) 39.15
Asset Allocation Fund
Class 1
1994 $(.52) $ (.18) $ (.70) $ 11.25
1995 (.50) (.17) (.67) 13.77
1996 (.53) (.48) (1.01) 15.18
1997 (.54) (.97) (1.51) 16.16
1998 (.57) (.87) (1.44) 16.57
1999 (.28) (1.15) (1.43) 16.21
Class 2 (4)
1997 (.26) - (.26) 16.15
1998 (.53) (.87) (1.40) 16.56
1999 (.26) (1.15) (1.41) 16.20
Bond Fund (6)
Class 1
1996 $(.25) - $(.25) $10.31
1997 (.62) - (.62) 10.62
1998 (.65) $(.12) (.77) 10.37
1999 (.34) (.05) (.39) 10.08
Class 2 (4)
1997 (.31) - (.31) 10.61
1998 (.63) (.12) (.75) 10.36
1999 (.33) (.05) (.38) 10.07
High-Yield Bond Fund
Class 1
1994 $(1.23) $(.25) $(1.48) $ 12.89
1995 (1.32) - (1.32) 13.99
1996 (1.30) - (1.30) 14.51
1997 (1.27) - (1.27) 14.96
1998 (1.25) (.16) (1.41) 13.77
1999 (.62) (.19) (.81) 13.41
Class 2 (4)
1997 (.63) - (.63) 14.95
1998 (1.22) (.16) (1.38) 13.76
1999 (.61) (.19) (.80) 13.40
U.S. Government/AAA-Rated Securities Fund
Class 1
1994 $(.74) $(.07) $(.81) $ 10.80
1995 (.81) - (.81) 11.52
1996 (.82) - (.82) 11.29
1997 (.80) - (.80) 11.18
1998 (.69) - (.69) 11.43
1999 (.33) - (.33) 11.05
Class 2 (4)
1997 (.37) - (.37) 11.17
1998 (.67) - (.67) 11.42
1999 (.31) - (.31) 11.04
Cash Management Fund
Class 1
1994 $(.32) - $(.32) $ 11.09
1995 (.59) - (.59) 11.11
1996 (.54) - (.54) 11.12
1997 (.55) - (.55) 11.13
1998 (.56) - (.56) 11.13
1999 (.28) - (.28) 11.10
Class 2 (4)
1997 (.26) - (.26) 11.12
1998 (.53) - (.53) 11.12
1999 (.26) - (.26) 11.10
Net assets,
end of
Period Total period (in
Ended (1) return millions)
- --------- --------- ---------
Global Growth Fund (2)
Class 1
1997 6.45 % (3) $ 80
1998 24.26 132
1999 17.77 (3) 190
Class 2 (4)
1997 6.28 (3) 46
1998 24.06 124
1999 17.56 (3) 179
Global Small Capitalization Fund (5)
Class 1
1998 (8.31) % (3) $55
1999 34.44 (3) 83
Class 2
1998 (8.49) (3) 17
1999 34.41 (3) 35
Growth Fund
Class 1
1994 2.92 % $2,027
1995 35.35 3,154
1996 14.32 3,860
1997 24.57 4,671
1998 25.27 5,313
1999 26.15 (3) 6,381
Class 2 (4)
1997 23.73 (3) 75
1998 24.97 310
1999 26.02 (3) 530
International Fund
Class 1
1994 10.48 % $1,405
1995 10.78 1,703
1996 16.66 2,370
1997 9.52 2,612
1998 16.94 2,593
1999 14.94 (3) 2,753
Class 2 (4)
1997 2.20 (3) 48
1998 16.63 126
1999 14.76 (3) 171
Growth Income Fund
Class 1
1994 3.21 % $2,740
1995 33.14 3,953
1996 21.02 5,249
1997 22.92 6,430
1998 14.77 6,704
1999 13.26 (3) 7,079
Class 2 (4)
1997 18.18 (3) 157
1998 14.49 564
1999 13.13 (3) 815
Asset Allocation Fund
Class 1
1994 (.54) % $ 637
1995 29.45 870
1996 18.65 1,141
1997 17.90 1,393
1998 12.32 1,497
1999 6.94 (3) 1,504
Class 2 (4)
1997 13.80 (3) 42
1998 12.05 173
1999 6.82 (3) 241
Bond Fund (6)
Class 1
1996 5.74 % (3) $ 77
1997 9.36 132
1998 5.12 186
1999 .95 (3) 183
Class 2 (4)
1997 8.09 (3) 12
1998 4.85 45
1999 .83 (3) 58
High-Yield Bond Fund
Class 1
1994 (5.71) % $390
1995 19.81 534
1996 13.75 662
1997 12.45 765
1998 1.44 715
1999 3.46 (3) 663
Class 2 (4)
1997 9.20 (3) 21
1998 1.18 68
1999 3.34 (3) 82
U.S. Government/AAA-Rated Securities Fund
Class 1
1994 (4.58) % $463
1995 14.73 542
1996 5.49 512
1997 6.49 471
1998 8.72 537
1999 (.47) (3) 499
Class 2 (4)
1997 6.65 (3) 7
1998 8.46 32
1999 (.59) (3) 38
Cash Management Fund
Class 1
1994 3.59 % $221
1995 5.65 193
1996 5.09 240
1997 5.21 226
1998 5.17 250
1999 2.24 (3) 279
Class 2 (4)
1997 2.87 (3) 14
1998 4.92 34
1999 2.21 (3) 36
Ratio
Ratio of of net
expenses income to
Period to average average
Ended (1) net assets net assets
- --------- --------- ---------
Global Growth Fund (2)
Class 1
1997 .44 % (3) .80% (3)
1998 .75 1.14
1999 .36 (3) .51 (3)
Class 2 (4)
1997 .57 (3) .56 (3)
1998 1.00 .87
1999 .49 (3) .39 (3)
Global Small Capitalization Fund (5)
Class 1
1998 .51 % (3) .86% (3)
1999 .42 (3) .52 (3)
Class 2
1998 .64 (3) .63 (3)
1999 .54 (3) .44 (3)
Growth Fund
Class 1
1994 .49 % .78%
1995 .47 .92
1996 .44 .61
1997 .42 .59
1998 .41 .38
1999 .20 (3) .10 (3)
Class 2 (4)
1997 .37 (3) .08 (3)
1998 .66 .15
1999 .32 (3) -
International Fund
Class 1
1994 .80 % 2.03%
1995 .75 2.64
1996 .69 1.99
1997 .67 1.56
1998 .66 1.36
1999 .32 (3) .83 (3)
Class 2 (4)
1997 .53 (3) .34 (3)
1998 .91 1.03
1999 .44 (3) .75 (3)
Growth Income Fund
Class 1
1994 .47 % 2.72%
1995 .44 2.70
1996 .41 2.26
1997 .38 2.01
1998 .36 1.74
1999 .18 (3) .87 (3)
Class 2 (4)
1997 .35 (3) .93 (3)
1998 .61 1.02
1999 .30 (3) .75 (3)
Asset Allocation Fund
Class 1
1994 .53 % 4.55%
1995 .52 4.11
1996 .49 3.88
1997 .47 3.63
1998 .45 3.63
1999 .22 (3) 1.76 (3)
Class 2 (4)
1997 .40 (3) 1.81 (3)
1998 .70 3.39
1999 .35 (3) 1.64 (3)
Bond Fund (6)
Class 1
1996 .52 % (3) 6.18% (3)
1997 .55 6.63
1998 .54 6.89
1999 .27 (3) 3.52 (3)
Class 2 (4)
1997 .44 (3) 3.50 (3)
1998 .78 6.62
1999 .39 (3) 3.41 (3)
High-Yield Bond Fund
Class 1
1994 .54 % 9.37%
1995 .54 10.12
1996 .53 9.27
1997 .51 8.92
1998 .51 8.66
1999 .26 (3) 4.68 (3)
Class 2 (4)
1997 .43 (3) 4.92 (3)
1998 .76 8.60
1999 .38 (3) 4.60 (3)
U.S. Government/AAA-Rated Securities Fund
Class 1
1994 .54 % 6.69%
1995 .54 7.37
1996 .53 7.33
1997 .52 6.73
1998 .51 6.11
1999 .26 (3) 2.97 (3)
Class 2 (4)
1997 .44 (3) 3.45 (3)
1998 .75 5.68
1999 .39 (3) 2.85 (3)
Cash Management Fund
Class 1
1994 .49 % 3.60%
1995 .49 5.37
1996 .47 4.94
1997 .47 4.99
1998 .46 5.07
1999 .23 (3) 2.25 (3)
Class 2 (4)
1997 .41 (3) 2.80 (3)
1998 .70 4.75
1999 .36 (3) 2.15 (3)
Portfolio
Period turnover
Ended (1) rate
- --------- ---------
Global Growth Fund (2)
Class 1
1997 13.22 % (3)
1998 25.56
1999 18.81 (3)
Class 2 (4)
1997 13.22 (3)
1998 25.56
1999 18.81 (3)
Global Small Capitalization Fund (5)
Class 1
1998 28.20 % (3)
1999 54.38 (3)
Class 2
1998 28.20 (3)
1999 54.38 (3)
Growth Fund
Class 1
1994 29.58 %
1995 35.47
1996 30.88
1997 45.14
1998 49.91
1999 21.21 (3)
Class 2 (4)
1997 45.14
1998 49.91
1999 21.21 (3)
International Fund
Class 1
1994 19.66 %
1995 24.66
1996 32.08
1997 50.12
1998 34.08
1999 27.58 (3)
Class 2 (4)
1997 50.12
1998 34.08
1999 27.58 (3)
Growth Income Fund
Class 1
1994 29.26 %
1995 26.91
1996 31.27
1997 37.55
1998 42.72
1999 23.11 (3)
Class 2 (4)
1997 37.55
1998 42.72
1999 23.11 (3)
Asset Allocation Fund
Class 1
1994 36.13 %
1995 39.89
1996 50.62
1997 34.14
1998 27.97
1999 21.34 (3)
Class 2 (4)
1997 34.14
1998 27.97
1999 21.34 (3)
Bond Fund (6)
Class 1
1996 32.83 % (3)
1997 52.93
1998 61.54
1999 24.35 (3)
Class 2 (4)
1997 52.93
1998 61.54
1999 24.35 (3)
High-Yield Bond Fund
Class 1
1994 38.46 %
1995 31.73
1996 44.81
1997 50.22
1998 65.80
1999 21.88 (3)
Class 2 (4)
1997 50.22
1998 65.80
1999 21.88 (3)
U.S. Government/AAA-Rated Securities Fund
Class 1
1994 45.21 %
1995 30.11
1996 30.45
1997 53.80
1998 89.25
1999 35.35 (3)
Class 2 (4)
1997 53.80
1998 89.25
1999 35.35 (3)
Cash Management Fund
Class 1
1994 -
1995 -
1996 -
1997 -
1998 -
1999 -
Class 2 (4)
1997 -
1998 -
1999 -
(1) The periods
ended 1994
through 1998
represent fiscal
years ended
November 30; the
period ended
1999 represents
the six months
ended May 31
(unaudited).
(2) Commenced operations
April 30, 1999.
(3) Based on operations
for the period shown
and, accordingly, not
representative of a
full year.
(4) Shares offered for
sale commencing
April 30, 1997.
(5) Commenced operations
April 30, 1998.
(6) Commenced operations
January 2, 1996.
See Notes to Financial Statements
</TABLE>
[The American Funds(SM) Insurance Series]
AMERICAN VARIABLE INSURANCE SERIES
BOARD OF TRUSTEES
LEE A. AULT III*
Los Angeles, California
Private investor and corporate director;
former Chairman, President and Chief
Executive Officer, Telecredit, Inc.
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
Managing Director,
Senior Resource Group, LLC
(development and management of
senior living communities)
LEONARD R. FULLER*
Marina del Rey, California
President, Fuller Consulting
(management consultants)
MARY MYERS KAUPPILA
Boston, Massachusetts
Private investor;
former owner 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
Chairman of the Board of the series
President and Director,
Capital Research and Management Company
THOMAS E. TERRY
Los Angeles, California
Consultant; former
Vice President and Secretary,
Capital Research and Management Company
*effective July 1, 1999
OTHER OFFICERS
JAMES K. DUNTON
Los Angeles, California
President and Chief Executive Officer 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
Senior 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
Vice President,
Capital Research and Management 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
SUSAN M. TOLSON
Los Angeles, California
Vice President of the series
Senior Vice President and Director,
Capital Research 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
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 92821-5823
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 gives details
about charges, expenses, investment objectives and operating policies. If used
as sales material after September 30, 1999, this report must be accompanied by
an American Legacy II Statistical Update for the most recently completed
calendar quarter.
Printed on recycled paper
Litho in USA BUR/L/4210
E1999 American Funds Distributors, Inc.
Lit. No. VI-013-0799
