[The American Funds(SM) Insurance Series]
AMERICAN VARIABLE INSURANCE SERIES
1999 Annual Report
for the year ended November 30 and
the month ended December 31
[cover illustration: close up of red apple]
BACK TO BASICS
AMERICAN VARIABLE INSURANCE SERIES
AMERICAN VARIABLE INSURANCE SERIES(R) is the underlying investment vehicle for
the American Legacy
variable annuities and other insurance products.
The investment adviser for American Variable Insurance Series is Capital
Research and Management Company. For more than six decades, Capital has
invested with a long-term focus based on thorough research and attention to
risk.
Portfolio Listings Begin on Page:
20 Global Growth Fund
25 Global Small Capitalization Fund
30 Growth Fund
35 International Fund
41 New World Fund
45 Growth-Income Fund
51 Asset Allocation Fund
59 Bond Fund
67 High-Yield Bond Fund
75 U.S. Government/AAA-Rated Securities Fund
79 Cash Management Fund
This report shows investment results for Class 1 and Class 2 shares of the
funds in American Variable Insurance Series. Class 2 shares began operations on
April 30, 1997. Results that encompass periods prior to that date assume a
hypothetical investment in Class 1 shares, and include deduction of the
additional 0.25% annual expense for Class 2 shares under the series' Plan of
Distribution. The variable annuities and life insurance contracts that use the
series' funds contain certain fees and expenses not reflected here.
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. INVESTING OUTSIDE
THE UNITED STATES, ESPECIALLY IN DEVELOPING COUNTRIES, IS SUBJECT TO ADDITIONAL
RISKS, SUCH AS CURRENCY FLUCTUATIONS OR POLITICAL INSTABILITY. 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.
FELLOW INVESTORS:
This annual report of American Variable Insurance Series covers an unusual time
frame - the 13 months from December 1, 1998, to December 31, 1999. This was
done to accommodate a one-month shift in the close of the series' fiscal year,
from November 30, the current fiscal close, to December 31, the new fiscal
year-end. Since we are required to report returns for both periods, we have
combined the two reporting periods in a single publication to reduce printing
and mailing costs.
The funds in the series serve as the underlying investment vehicles for the
American Legacy variable annuities and other insurance products.
TECHNOLOGY STOCKS SKYROCKET
Global equity markets closed out the millennium with much fanfare, having made
considerable progress during the year. Investor fears of Y2K computer glitches
took a back seat to even greater fears of missing out on a boom in so-called
"new economy" investments - namely, technology and telecommunications stocks.
Beneficiaries ran the gamut from such established global companies as Cisco
Systems, Nokia, Oracle and Mannesmann to virtually any stock with "dot-com" in
its name.
Although we have tended to avoid highly volatile Internet issues, we have been
enthusiastic for some time about the prospects for technology, media and
telecommunications companies, the most successful of which are harnessing the
potential of the Internet. All three industries are well-represented throughout
the portfolios. As a result, the rally proved advantageous for the series'
stock funds; most posted outstanding results for the period.
Largely on the strength of the technology surge, most major stock markets
around the world ended the 13-month period substantially higher than where they
began. The unmanaged Standard & Poor's 500 Composite Index, a widely used proxy
for large U.S. stocks, rose 28.3% with dividends reinvested. Smaller U.S.
stocks, as measured by the Russell 2000 Index, gained 28.8%, rebounding from
depressed levels. International stocks did even better, appreciating 32.4%, as
tracked by the Morgan Stanley Capital International EAFE(r) (Europe,
Australasia, Far East) Index.
[Begin Sidebar]
MOST OF THE SERIES' STOCK FUNDS POSTED OUTSTANDING RESULTS FOR THE PERIOD.
[End Sidebar]
It should be noted that these broad advances, however welcome, occurred within
an unusually narrow range of securities. The run-up in technology stocks
obscured steep declines in most other sectors - such as banking, utilities and
insurance - which were hobbled by rising interest rates in the U.S. and Europe.
Indeed, the divergence between the best- and worst-performing sectors of the
market has widened considerably in recent years: Notwithstanding the 28.3%
increase in the S&P 500, about half of the stocks in the index actually
declined during the 13 months. That disparity generally held true for
international markets as well and signals caution in the year ahead.
GLOBAL ECONOMIES BRIGHTEN, MERGERS QUICKEN THEIR PACE
The rise in interest rates was a byproduct of renewed vigor in many of the
world's economies, with Asia's turnaround taking center stage. Although Asia's
recovery is still fragile, investors were encouraged by corporate restructuring
efforts and government commitments to enforce accountability, particularly
within their banking systems. In Japan, U.S. investors received an extra boost
from a strengthening currency; stock prices rose 39.9% in yen, but 68.1% when
translated into U.S. dollars./1/ Elsewhere in Asia, Taiwan rose by 36.3%, India
by 103.0% and Singapore by 96.9%. South Korea gained an astounding 163.7%,
albeit from a severely depressed base.
/1/Country returns are based on MSCI indexes for the 13-month period, expressed
in dollar terms and assume reinvestment of dividends.
European markets tended to be lackluster by comparison, hampered by stubbornly
high unemployment and disappointment in the weakening of the euro, the common
currency, against the dollar and the yen. Still, Europe appears to be on the
brink of an economic revival, and pockets of investor optimism have already
emerged. In France, for example, consumer confidence lifted stock prices 35.1%;
in Germany, a pick-up in manufacturing pushed up stock prices 23.6%. Finland
(+199.4%) was Europe's biggest gainer, although virtually all of that increase
came from Nokia, the world's leading wireless phone maker, which represents
more than 90% of that country's market capitalization. The United Kingdom,
meanwhile, returned a respectable 16.0% as the government attempts to keep
economic growth on an even keel.
Throughout the world, the pace of merger activity again set records,
particularly in the telecommunications sector. In a flurry of empire-building
worthy of the royal dynasties of Europe, service providers are rushing to link
up not only with each other, but with technology firms and cable television
operators as they compete to lead the next wave of the communications
revolution. In recent months alone, Vodafone AirTouch, itself the product of a
merger earlier in the year, made a bid for German-based Mannesmann, which is in
the process of acquiring yet another wireless operator, Orange of the U.K.
AT&T, meanwhile, has added cable companies Tele-Communications and MediaOne to
its domain; Microsoft, which bought a large stake in AT&T, just announced a
joint venture with Ericsson, the Swedish telecommunications equipment giant, to
develop Internet access, e-mail and other applications for wireless phones.
INTEREST RATES RISE, BONDS FALL
The optimism fueling equity markets did not spread to U.S. bond investors, who
tended to hold a less sanguine view of the future. Although inflation remains
remarkably subdued amid continued growth in the U.S., there have been signs of
higher prices in the pipeline: Wage pressures began to intensify as
unemployment fell to record lows, and the cost of oil and other raw materials
rose sharply. The anticipation of preemptive measures by the U.S. Federal
Reserve Board - confirmed by quarter-point increases in short-term interest
rates in June, August and November - dampened bond prices considerably
throughout the year. Yields on 30-year Treasury bonds, which began the period
at 5.1%, were 6.5% at December 31, reflecting a nearly 20% drop in price. (Bond
yields and prices move in opposite directions.) The decline was indiscriminate,
taking down virtually every sector of the bond market, although lower rated
bonds and those of developing markets tended to hold up somewhat better. Not
surprisingly in this environment, the series' bond funds posted somewhat anemic
returns.
[Begin Sidebar]
GLOBAL GROWTH FUND
Where the Fund's Assets Were Invested
<TABLE>
<CAPTION>
<S> <C> <C>
Percent of Net Assets
as of
11/30/99 12/31/99
THE AMERICAS
Brazil 1.7% 2.8%
Canada 5.4 5.0
Mexico 2.0 1.8
United States 26.8 25.3
Other Americas .2 .2
36.1% 35.1%
ASIA/PACIFIC
Australia 3.1% 2.8%
Hong Kong 1.5 1.6
India 1.8 2.3
Japan 15.7 15.8
People's Republic
of China .8 .8
Singapore 3.0 3.1
South Korea 2.8 2.5
Taiwan .9 1.0
29.6% 29.9%
EUROPE
Finland .5% .5%
France 1.6 1.4
Germany 4.0 4.4
Italy 1.4 1.3
Netherlands 1.9 2.0
Norway .7 .8
Portugal .7 .8
Spain 1.7 2.0
Sweden 2.1 1.9
United Kingdom 10.8 8.8
Other Europe 1.1 1.2
26.5% 25.1%
OTHER COUNTRIES .9% .8%
CASH & EQUIVALENTS 6.9 9.1
TOTAL 100.0% 100.0%
</TABLE>
[End Sidebar]
A NEW INVESTMENT OPTION
We are pleased to announce that we have once again expanded our portfolio of
choices. In June, we introduced New World Fund, our eleventh investment option.
The fund, which mirrors an American Fund of the same name, is designed to
uniquely tap the growth potential of developing countries. Our decision to
offer this new fund, like all of our investment decisions, is based on careful
research and a conviction about our ability to seek out rewarding long-term
investment opportunities.
The eleven funds in American Variable Insurance Series provide a diverse
spectrum of tools to help you build a secure financial future. Regardless of
investment objective, what all these funds have in common is the singular
philosophy of Capital Research and Management Company, the series' investment
adviser. Capital's approach - 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.
[Begin Sidebar]
GLOBAL SMALL CAPITALIZATION FUND
Where the Fund's Assets Were Invested
<TABLE>
<CAPTION>
<S> <C> <C>
Percent of Net Assets
as of
11/30/99 12/31/99
THE AMERICAS
Brazil .9% 1.3%
Canada 4.9 6.2
United States 32.9 34.0
Other Americas .5 .5
39.2% 42.0%
ASIA/PACIFIC
Australia .7% .6%
Hong Kong 2.2 2.1
Japan 21.0 16.7
New Zealand 1.3 1.3
People's Republic
of China .8 .4
Singapore 2.0 2.5
South Korea .8 .2
Taiwan 2.9 4.6
Other Asia/Pacific 1.2 1.1
32.9% 29.5%
EUROPE
Finland 1.1% 1.1%
France .8 1.0
Germany 1.1 1.4
Ireland 1.1 1.2
Luxembourg - .5
Netherlands 1.8 1.4
Sweden .9 .8
United Kingdom 7.1 7.0
Other Europe .7 .9
14.6% 15.3%
OTHER COUNTRIES 3.1% 3.3%
CASH & EQUIVALENTS 10.2 9.9
TOTAL 100.0% 100.0%
</TABLE>
[End Sidebar]
Here are brief comments about each of the funds. Returns are for Class 2 shares
for the 12 months ended November 30, 1999, and the month ended December 31,
1999. Results for other periods and for Class 1 shares are detailed on pages 8
through 11.
GLOBAL GROWTH FUND returned 51.5% for the 12 months ended November 30, and
18.5% for the month of December. With the flexibility to invest virtually
anywhere in the world, the fund was well-positioned to benefit from the rallies
in Asian and technology-related stocks. Among larger holdings that did
strikingly well, Murata, a producer of computer component parts, more than
quadrupled in share price; software giant Oracle almost tripled. The fund was
also helped by its increasingly large exposure to Asia and the Pacific Basin,
which, at 30% of net assets at December 31, was more than twice what it was 13
months earlier.
GLOBAL SMALL CAPITALIZATION FUND appreciated an outstanding 91.9% as of
November 30 and rose another 11.7% in December. Good stock selection helped the
fund achieve superior results, although it almost goes without saying that we
would not expect another gain of this magnitude any time soon. Not
surprisingly, technology companies achieved the greatest increases in the
portfolio. Many are little-known firms that are nonetheless responsible for
supplying the "guts" of today's powerful computers - everything from
semiconductors to networking software. The portfolio is broadly diversified,
though, encompassing a wide range of companies, industries and countries.
GROWTH FUND gained 52.2% through November 30 and 14.4% in December. The fund's
primary objective is growth of capital, and we are pleased to note that the
majority of holdings increased in price. The fund was especially well served by
its sizable exposure to technology-related companies, although many other
holdings also appreciated. That said, concern about the current valuations of
many technology stocks has led us to look to other sectors, such as health
care, for better values. The portfolio invests primarily in U.S. companies,
although most do a significant amount of business abroad.
[Begin Sidebar]
INTERNATIONAL FUND
Where the Fund's Assets Were Invested
<TABLE>
<CAPTION>
<S> <C> <C>
Percent of Net Assets
as of
11/30/99 12/31/99
EUROPE
Finland 4.4% 4.5%
France 5.1 5.3
Germany 7.9 8.6
Italy 4.1 4.8
Netherlands 4.6 4.5
Norway 1.0 .9
Spain 4.1 5.0
Sweden 2.3 2.5
Switzerland 2.7 2.7
United Kingdom 12.6 9.4
Other Europe .5 .5
49.3% 48.7%
ASIA/PACIFIC
Australia 4.4% 4.3%
Hong Kong 1.0 .9
India .5 .5
Japan 19.6 20.3
Malaysia .5 .5
Philippines .7 .6
People's Republic
of China .9 .9
Singapore 1.5 1.6
South Korea 3.4 3.2
Taiwan 2.1 2.1
Other Asia/Pacific .2 .2
34.8% 35.1%
THE AMERICAS
Brazil .6% .5%
Canada 3.6 3.5
Mexico 4.4 4.4
Other Americas .2 .2
8.8% 8.6%
OTHER COUNTRIES 1.8% 1.9%
CASH & EQUIVALENTS 5.3 5.7
TOTAL 100.0% 100.0%
</TABLE>
[End Sidebar]
INTERNATIONAL FUND increased 56.2% for the 12 months ended November 30 and
18.2% for the month of December. The fund enjoyed the best of all possible
worlds during the period - a rebound in Asian markets, a boom in
telecommunications-related stocks and strong appreciation in the yen relative
to the dollar, which boosted Japanese stock prices for U.S.-based investors.
Some of the period's biggest gainers included Samsung Electronics, Telefonos de
Mexico, Sony and Rohm, all of which are large holdings. Despite general
weakness in Europe, a number of investments - Deutsche Telekom, Mannesmann and
CANAL+, to name three - handily outpaced the markets in which they are traded.
NEW WORLD FUND posted a 5.7% return from its inception date of June 17, 1999 to
November 30, and an 11.9% return for December. The fund is designed to
participate in the growth of the developing world while tempering the
volatility normally associated with these markets. The fund's three-fold
strategy is unique: It invests directly in equities of companies based in
developing markets; in the equities of developed-market companies doing
significant business in developing countries; and in debt securities with
exposure to developing markets. Research is another way to reduce volatility,
and our experienced analysts have been doing their homework carefully to find
appropriate investments for the fund. To date, the portfolio is about 80%
invested. The table on page 6 shows net assets by country.
[Begin Sidebar]
NEW WORLD FUND
Where the Fund's Assets Were Invested
<TABLE>
<CAPTION>
<S> <C> <C>
Percent of Net Assets
as of
11/30/99 12/31/99
ASIA/PACIFIC
Australia 1.4% 1.1%
Hong Kong 1.6 1.6
India 1.8 1.6
Indonesia .5 .5
Japan 5.4 5.6
People's Republic
of China 1.0 .9
Philippines 3.1 2.7
Singapore 2.7 2.6
South Korea 8.2 8.0
Taiwan 1.8 1.9
Other Asia/Pacific .4 .4
27.9% 26.9%
THE AMERICAS
Argentina 2.6% 3.4%
Brazil 7.4 8.6
Mexico 6.1 5.5
Panama .8 .7
United States 9.5 7.9
Venezuela 1.2 1.0
27.6% 27.1%
EUROPE
France 1.7% -
Hungary 2.0 1.9%
Netherlands 2.1 2.0
Norway 1.0 .8
Poland 2.3 2.0
Republic of Croatia 1.3 1.1
Spain .4 .6
Sweden 1.0 1.0
Turkey 3.4 3.9
United Kingdom 2.8 2.8
Other Europe .4 .4
18.4% 16.5%
OTHER COUNTRIES 6.6% 6.1%
CASH & EQUIVALENTS 19.5 23.4
TOTAL 100.0% 100.0%
</TABLE>
[End Sidebar]
GROWTH-INCOME FUND appreciated 12.6% for the 12 months ended November 30 and
3.2% for the month of December. The fund's focus on dividend-paying stocks held
results back a bit, as investors fretted about the possible negative impact of
rising interest rates on earnings. Technology firms - such as Texas
Instruments, the largest holding - were among those showing the strongest
increases, but other investments also did well. Notable among them were
Weyerhaeuser, Bowater, Kerr-McGee, Atlantic Richfield and other producers of
energy and basic materials, which benefited from rising commodities prices.
Given the general level of speculation we are seeing in the market, we have
kept a fairly high reserve of cash and equivalents as a cushion.
ASSET ALLOCATION FUND returned 7.4% through November 30 and 1.4% for the month
of December. The fund is managed as though it constitutes the complete U.S.
portfolio of a prudent investor, with a balance of stocks, bonds and short-term
instruments. The equity portion, accounting for more than 60% of net assets,
emphasizes large, solid businesses across a wide range of industries. Of the
companies represented, large holdings include Citigroup, Hewlett-Packard,
Carnival and Corning, all of which did well over the period. Nonetheless,
overall results were dampened by the bonds in the portfolio, which fell as
interest rates rose. About 30% of assets are invested in bonds; the balance,
under 10% of assets, is held in cash and equivalents.
BOND FUND registered a gain of 2.1% for the 12 months ended November 30 and
0.6% for December. Although the fund can invest in virtually any type of bond,
there were few places to hide during the year. The fund was helped by its
corporate holdings, but rising interest rates sent jitters throughout the
fixed-income universe. It remains to be seen whether the upward trend in rates
will continue; 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.
HIGH-YIELD BOND FUND rose 4.0% for the year ended November 30 and 1.8% for
December. Lower quality bonds, which typically pay higher yields to compensate
for a higher risk of default, share certain characteristics with stocks in that
they are sensitive to the rise and fall of a company's fortunes, as well as
interest rates. As a result, high-yield bonds received some help during the
year from a strong equity market, holding up better than their investment-grade
counterparts. The fund also benefited from good bond selection, particularly
among its telecommunications-related issues. Looking forward, increasing demand
for high-yield instruments may signal new strength in the coming months.
U.S. GOVERNMENT/AAA-RATED SECURITIES FUND posted a 0.1% return through November
30 and a 0.4% loss for December. To a large degree, the fund's meager return
represents the flip-side of last year's exceptional gains. U.S. Treasury
securities retreated sharply during the reporting period, in the face of rising
commodities prices, robust economic growth and the tightest labor market in
three decades. Matters worsened in the summer, when a strengthening yen made
dollar-denominated bonds even less appealing to foreign investors. Losses were
tempered somewhat by investments in mortgage-backed securities, which generally
held up better than U.S. Treasury securities.
CASH MANAGEMENT FUND provided a 12-month return of 4.5% through November 30,
and a one-month return of 0.4% for December. Yields on short-term instruments
rose modestly in response to credit tightening by the Federal Reserve. Managed
for relative stability and a reasonable rate of return, the fund can be an
important diversification tool, as well as a base for making tax-free
investments into other funds in the series. About three-quarters of assets are
concentrated in top-grade commercial paper, with the balance invested in U.S.
Treasury and federal agency bills.
In keeping with the series' new fiscal close, our next report to investors will
cover the six months through June 30. We look forward to communicating with you
then.
Cordially,
/s/James F. Rothenberg /s/James K. Dunton
James F. Rothenberg James K. Dunton
Chairman of the Board President
January 21, 2000
THE VALUE OF A LONG-TERM PERSPECTIVE
There have always been reasons not to invest. If you look beyond negative
headlines, however, you will find that, despite occasional stumbles, financial
markets have tended to reward investors over the long term. These charts
illustrate the growth of a $10,000 investment in each of the investment
portfolios in American Variable Insurance Series (with the exception of the
Cash Management Fund, which is managed to provide preservation of principal)
over the past 10 years - or lifetime of the fund, if shorter than 10 years. The
charts reflect results for Class 2 shares. Class 2 shares began operations on
April 30, 1997. Results encompassing periods prior to that date assume a
hypothetical investment in Class 1 shares, and deduction of the additional
0.25% annual expense for Class 2 shares under the series' Plan of Distribution.
The tables show the average annual compound returns over various periods for
both Class 1 and Class 2 shares.
[Begin Sidebar]
GLOBAL GROWTH FUND
Investments primarily in stocks
Scale adjusted for shorter time period
<TABLE>
<CAPTION>
<S> <C> <C> <C>
End of Month Global Growth MSCI Consumer
Fund, Class 2 World Index/1/ Price Index/2/
4/97 10,000 10,000 10,000
5/97 10,420 10,619 9,994
8/97 10,580 10,887 10,037
11/97 10,628 11,072 10,081
2/98 11,900 12,304 10,106
5/98 12,524 12,792 10,162
8/98 11,182 11,336 10,200
11/98 13,185 13,334 13,334
2/99 14,682 13,918 10,268
5/99 15,501 14,524 10,375
8/99 16,989 15,135 10,431
11/99 19,970 16,217 10,506
12/99 23,666 17,532 10,506
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +51.89% +51.45% +70.02% +69.67%
Lifetime (since 4/30/97) +30.97 +30.66 +38.40 +38.06
</TABLE>
GLOBAL SMALL CAPITALIZATION FUND
Investments primarily in stocks
Scale adjusted for shorter time period
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
End of Month Global Small Consumer Salomon
Capitalization Price Index/2/ Smith Barney
Fund, Class 2 World Smallcap
Index
4/98 10,000 10,000 10,000
5/98 9,479 10,018 9,716
8/98 7,797 10,055 7,532
11/98 9,151 10,092 8,563
2/99 10,523 10,123 8,455
5/99 12,300 10,228 9,437
8/99 17,558 10,357 10,202
12/99 19,609 10,357 10,896
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +92.15% +91.86% +91.77% +91.37%
Lifetime (since 4/30/98) +42.91 +42.60 +49.93 +49.62
</TABLE>
GROWTH FUND
Investments primarily in stocks
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Year ended Growth S&P 500 Consumer
Nov. 30 Fund, Class 2 Index Price Index/2/
1989 10,000 10,000 10,000
1990 9,181 9,643 10,627
1991 11,433 11,613 10,945
1992 13,558 13,757 11,279
1993 15,630 15,142 11,581
1994 16,041 15,304 11,890
1995 21,654 20,959 12,200
1996 24,686 26,802 12,597
1997 30,677 34,457 12,828
1998 38,337 42,616 13,026
11/99 58,355 51,524 13,368
12/99 66,781 54,655 13,368
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +52.55% +52.22% +57.62% +57.27%
Five Years +29.79 +29.47 +33.24 +32.92
10 Years +19.61 +19.29 +21.36 +21.04
Lifetime (since 2/8/84) +19.06 +18.72 +19.96 +19.63
</TABLE>
INTERNATIONAL FUND
Investments primarily in stocks
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Year ended International MSCI EAFE Consumer
November 30 Fund, Class 2 Index/3/ Price Index/2/
5/90 10,000 10,000 10,000
11/90 9,477 10,380 9,483
11/91 10,270 10,691 10,310
11/92 10,333 11,016 9,508
11/93 13,109 11,311 11,852
11/94 14,444 11,614 13,646
11/95 15,956 11,916 14,724
11/96 18,566 12,304 16,504
11/97 20,284 12,529 16,483
11/98 23,657 12,723 19,249
11/99 36,944 13,057 23,373
12/99 43,646 13,057 25,476
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +56.48% +56.16% +76.43% +75.97%
Five Years +20.96 +20.66 +25.30 +24.99
Lifetime (since 5/1/90) +14.91 +14.61 +16.77 +16.46
</TABLE>
NEW WORLD FUND
Investments primarily in stocks
Scale adjusted for shorter time period
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
End of Month New World Fund, Consumer MSCI AC
Class 2 Price Index/2/ World Free
Index /4/
6/17/99 10,000 10,000 10,000
6/30/99 10,030 10,000 10,000
7/31/99 9,900 10,030 9,959
8/31/99 9,840 10,054 9,947
9/30/99 9,549 10,102 9,840
10/31/99 9,910 10,120 10,338
11/30/99 10,571 10,126 10,660
12/31/99 11,835 10,126 11,548
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
Lifetime (since 6/17/99) +5.87% +5.71% +18.47% +18.35%
</TABLE>
GROWTH-INCOME FUND
Investments primarily in stocks
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Year ended Growth-Income S&P 500 Consumer
Nov. 30 Fund, Class 2 Index Price Index/2/
11/89 10,000 10,000 10,000
11/90 9,441 9,643 10,627
11/91 11,090 11,613 10,945
11/92 12,814 13,757 11,279
11/93 14,263 15,142 11,581
11/94 14,678 15,304 11,890
11/95 19,486 20,959 12,200
11/96 23,518 26,802 12,597
11/97 28,835 34,457 12,828
11/98 33,013 42,616 13,026
11/99 37,169 51,524 13,368
12/99 38,355 54,655 13,368
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +12.86% +12.59% +11.47% +11.20%
Five Years +20.74 +20.42 +21.26 +20.95
10 Years +14.35 +14.03 +14.65 +14.33
Lifetime (since 2/8/84) +15.73 +15.39 +15.87 +15.53
</TABLE>
ASSET ALLOCATION FUND
Investments in both stocks and bonds
[Begin Mountain Chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Year ended Asset S&P 500 Consumer Salomon
Nov. 30 Allocation Index Price Smith
Fund, Index/2/ Barney
Class 2 BIG
Index/5/
1989 10,000 10,000 10,000 10,000
1990 9,736 9,643 10,627 10,764
1991 11,414 11,613 10,945 12,315
1992 12,937 13,757 11,279 13,436
1993 14,264 15,142 11,581 14,914
1994 14,146 15,304 11,890 14,460
1995 18,262 20,959 12,200 17,035
1996 21,610 26,802 12,597 18,054
1997 25,415 34,457 12,828 19,421
1998 28,476 42,616 13,026 21,263
1999 30,582 51,524 13,368 21,249
12/1999 31,016 54,655 13,368 21,152
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +7.65% +7.39% +7.25% +6.92%
Five Years +16.97 +16.67 +17.01 +16.70
10 Years +12.13 +11.83 +12.19 +11.87
Lifetime (since 8/1/89) +11.91 +11.60 +11.97 +11.65
</TABLE>
BOND FUND
Investments primarily in bonds
Scale adjusted for shorter time period
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
End of month Bond Fund, Consumer Salomon
Class 2 Price Index/2/ Smith Barney
BIG Index/5/
1/96 10,000 10,000 10,000
5/96 9,740 10,202 9,748
11/96 10,550 10,332 10,454
5/97 10,844 10,430 10,554
11/97 11,505 10,521 11,246
5/98 11,979 10,606 11,714
11/98 12,064 10,684 12,312
5/99 12,164 10,827 12,221
11/99 12,313 10,964 12,304
12/99 12,386 10,964 12,248
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +2.33% +2.07% +2.81% +2.55%
Lifetime (since 1/2/96) +5.74 +5.47 +5.76 +5.50
</TABLE>
HIGH-YIELD BOND FUND
Investments primarily in bonds
$13,368
Consumer
Price Index/2/
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Year ended High-Yield Consumer Salomon Salomon
Nov. 30 Bond Fund, Price Smith Smith
Class 2 Index/2/ Barney Barney
BIG Long-Term
Index/5/ High-Yield
Index
1989 10,000 10,000 10,000 10,000
1990 10,206 10,627 10,764 8,997
1991 12,832 10,945 12,315 12,931
1992 14,467 11,279 13,436 15,411
1993 16,883 11,581 14,914 18,579
1994 15,867 11,891 14,460 17,795
1995 18,954 12,200 17,035 22,777
1996 21,502 12,597 18,054 25,054
1997 24,119 12,828 19,421 29,168
1998 24,403 13,026 21,263 32,122
1999 25,368 13,368 21,249 32,228
12/1999 25,831 13,368 21,152 32,427
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +4.22% +3.96% +5.80% +5.53%
Five Years +10.13 +9.84 +10.49 +10.21
10 Years +10.10 +9.76 +10.23 +9.89
Lifetime (since 2/8/84) +11.66 +11.25 +11.72 +11.31
</TABLE>
U.S. GOVERNMENT/AAA-RATED SECURITIES FUND
Investments primarily in bonds
[Begin mountain chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Year ended U.S. Govt./ Smith Barney Consumer
Nov. 30 AAA-Rated Treasury/ Price Index/2/
Securities Govt.-Sponsored
Fund, Class 2 Mortgage
Index
1989 10,000 10,000 10,000
1990 10,671 10,806 10,627
1991 12,040 12,310 10,945
1992 13,180 13,396 11,279
1993 14,801 14,797 11,581
1994 14,081 14,374 11,890
1995 16,110 16,837 12,200
1996 16,949 17,834 12,597
1997 17,999 19,178 12,828
1998 19,521 21,000 13,026
1999 19,536 21,039 13,368
12/1999 19,444 20,943 13,368
</TABLE>
[end chart]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +0.24% +0.08% -0.52% -0.78%
Five Years +7.03 +6.77 +6.79 +6.52
10 Years +7.24 +6.93 +7.16 +6.85
Lifetime (since 12/1/85) +7.71 +7.37 +7.61 +7.26
</TABLE>
CASH MANAGEMENT FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Periods Ended
11/30/99 12/31/99
Class 1 Class 2 Class 1 Class 2
One Year +4.73% +4.47% +4.83% +4.47%
Five Years +5.17 +4.90 +5.15 +4.87
10 Years +4.91 +4.61 +4.89 +4.59
Lifetime (since 2/8/84) +5.83 +5.49 +5.83 +5.49
</TABLE>
As of December 31, the fund's annualized seven-day yield was 4.78% for Class 1
shares and 4.53% for Class 2 shares.
Past results are not predictive of future results.
The indexes are unmanaged and do not reflect sales charges, commissions or
expenses.
/1/ Morgan Stanley Capital International World Index.
/2/ Computed from data supplied by the U.S. Department of Labor, Bureau of
Labor Statistics.
/3/ Morgan Stanley Capital International EAFE(r) (Europe, Australasia, Far
East) Index.
/4/ Morgan Stanley Capital International All Country World Free Index.
/5/ Salomon Smith Barney Broad Investment-Grade (BIG) Index.
[End Sidebar]
BACK TO BASICS
[illustration: pencil writing the following phrase]
WHAT YOU NEED TO KNOW ABOUT VARIABLE ANNUITIES
Variable annuities are sometimes described as "mutual funds in an insurance
wrapper." While variable annuities and mutual funds do share a number of
characteristics - both offer diversification, growth potential and professional
management - variable annuities offer a host of additional features that mutual
funds don't. There is a trade-off for these extras in that owners of variable
annuity contracts typically pay higher annual fees to cover the costs of these
benefits. For investors with a long time horizon, however, variable annuities
can be a valuable tool to help build a financially secure future.
"Insurance-speak" is famously obscure, and the language of variable annuities
is no exception. That can make understanding these retirement vehicles somewhat
daunting, but their basic structure is fairly simple. On the following pages,
we offer a "primer" on how individual variable annuities work.* We also suggest
you consult your financial adviser, who can help you get the most out of the
lifetime of choices that your American Legacy contract provides.
*Certain features do not apply to annuities sold through retirement plans.
[Begin Sidebar]
[illustration linking American Legacy to Lincoln Life and American Variable
Insurance Series; American Variable Insurance Series is linked to Capital
Research]
AN AMERICAN LEGACY WHO'S WHO
Founded in 1905, The Lincoln National Life Insurance Company (Lincoln Life) is
one of the nation's largest stock life insurers based on assets. Lincoln Life
has received strong ratings by such independent ratings agencies as A.M. Best,
Duff & Phelps and Standard & Poor's.* It is a member of the Insurance Marketing
Standards Association.
American Legacy
Your variable annuity
Lincoln Life
The issuer of your American Legacy contract
American Variable Insurance Series
Your array of investment options
Capital Research
The series' investment adviser
Capital Research and Management Company is one of the nation's oldest and
largest investment management firms. In business since 1931, it also manages
the 29 mutual funds in The American Funds Group./+/
*Ratings are based on Lincoln Life's claims-paying ability. Ratings are not
meant to imply a guarantee of results for the variable funds.
/+/As an American Legacy contract owner, your account value is credited toward
rights of accumulation, which can lower the sales charge on purchases of
American Funds.
[End Sidebar]
[Begin Sidebar]
A VARIABLE ANNUITY LEXICON
ANNUITIZE: to convert the accumulated value of your contract into a stream of
income.
CONTINGENT DEFERRED SALES CHARGE: a surrender charge that applies to certain
early withdrawals.
CONTRACT VALUE: the total assets in your variable annuity, including original
investments.
DEATH BENEFIT: the amount payable to beneficiaries if you die before you begin
to annuitize your contract.
FIXED ACCOUNT: an account that pays a set rate of interest, guaranteed by the
insurer. Unlike variable funds, fixed accounts offer a predictable income
stream, but no growth potential.
INVESTMENT ADVISER: the firm that manages the variable funds within a variable
annuity.
PURCHASE PAYMENT: money you invest in your annuity contract.
SEPARATE ACCOUNT: the account that holds your variable annuity assets; it is
separate from the general assets of the insurance company.
TAX DEFERRAL: the ability to put off to a later time the payment of taxes.
UNITS: the shares you own in the variable funds.
VARIABLE ANNUITY: an annuity contract that allows you to allocate your purchase
payments among a number of investment options. Your contract value, which will
fluctuate, reflects the total return of the securities in the portfolios,
including a fixed account, minus the asset charges of your contract.
VARIABLE FUND: an investment choice within a variable annuity (also known as a
subaccount or underlying investment).
[End Sidebar]
[Begin Sidebar]
GROWTH POTENTIAL
[illustration of gardening water spout pouring letters]
DID YOU KNOW...
...The variable annuity was first introduced in 1952 as the College Retirement
Equity Fund (CREF) by the Teacher's Insurance and Annuity Association (TIAA).
It was available only to educators.
...In the mid-1980s, sweeping tax reform legislation eliminated many
tax-advantaged investments. Variable annuities were one of the few to survive.
...Today, as more Americans take responsibility for their own retirement
assets, variable annuities are more appealing than ever. According to the
National Association for Variable Annuities, annual sales have doubled since
1995, with total assets in variable annuities close to $1 trillion.
[End Sidebar]
MULTIPLE CHOICE
In some respects, variable annuities will feel familiar to anyone who has
invested with a mutual fund family. Like mutual funds, variable annuities
generally offer long-term growth potential from a variety of broadly
diversified, professionally managed portfolios.
Variable annuities have a crucial advantage over mutual funds, though: built-in
tax deferral on gains - whether from interest income, dividends or capital
gains. That means that money you otherwise would have paid in taxes each year
stays in your account. You only have to pay income taxes on those earnings when
you start taking withdrawals. The long-term impact of tax-deferred compounding
can be dramatic, particularly if the underlying investments do well.
KEEP YOUR BALANCE
A key advantage of owning a variable annuity is that it allows you to customize
a financial program from a wide array of investment options, all under a
single, tax-deferred umbrella.
Although funds in variable annuities are inherently diversified, containing
from dozens to hundreds of securities, it's a good idea to spread your money
across different types of investments as well. Most contract owners focus on
stocks, since they have historically been one of the best solutions to
overcoming the long-term effects of inflation and taxes. Many diversify further
by investing in international, small-company or developing markets funds, and
round out their choices with one or more bond portfolios or a money market
option.*
*Investments outside the United States, especially those in developing
countries, involve additional risks, which are outlined in the prospectus.
[Begin Sidebar]
VARIABLE ANNUITIES ALLOW YOU TO CUSTOMIZE AN INVESTMENT PROGRAM, ALL UNDER A
SINGLE TAX-DEFERRED UMBRELLA.
[End Sidebar]
Variable annuities make asset allocation - the practice of balancing your
investments among different asset classes - easy and inexpensive. Unlike mutual
fund transfers, even within the same family, all variable annuities allow you
to make exchanges between variable funds free of current taxes, giving you the
freedom to adapt your portfolio as your time horizon or investment goals
change. At some point, for example, you may wish to add an international fund,
or increase your bond holdings as you near retirement.
Allocation decisions depend on many factors, including your risk tolerance and
when you'll need to take income. Your financial adviser can help you determine
an investment plan that's most appropriate to your own situation. Some
contracts, including American Legacy, automatically regulate your investment
balance by regularly transferring money among designated funds. Your financial
adviser can tell you if this is a good option for you.
THE INSURANCE UMBRELLA
In addition to tax deferral, variable annuities offer a number of features and
guarantees that are backed by the claims-paying ability of the insurance
company issuing your contract. Details can vary widely, but typically include:
* A GUARANTEED MINIMUM DEATH BENEFIT, which protects your beneficiaries from
any loss of principal if the market value of your holdings declines. In most
cases, your heirs will receive at least your current account value or the
amount of your aggregate purchase payments (less any withdrawals already made)
- - whichever is greater. Some contracts adjust the minimum annually. For many
people, the guaranteed minimum death benefit gives them the comfort to invest
in stocks, which can be volatile at times.
* An ANNUITIZATION OPTION, which guarantees an income for life or a specified
period.
* A choice of FIXED ACCOUNTS that pay a guaranteed rate of interest.
As an added safeguard, your variable annuity assets are held in a separate
account from the insurance company's general assets and liabilities, and cannot
be used for any other purpose. Nonetheless, it's important to deal with a
company with proven strength and reliability (see "An American Legacy Who's
Who" on page 13).
TAKING WITHDRAWALS
Variable annuities have two phases: the accumulation phase, when you maximize
the potential of tax-deferred growth; and the distribution phase, when you take
income from your investment.
[Begin Sidebar]
INSURANCE PROTECTION
[illustration of umbrella with falling letters]
[End Sidebar]
[Begin Sidebar]
WHY A VARIABLE ANNUITY IS NOT AN IRA
While tax-conscious investors should not neglect individual retirement accounts
(IRAs) or employer-sponsored retirement plans such as 401(k)s, not all
investment vehicles are alike:
VARIABLE ANNUITIES
There are no Internal Revenue restrictions on the amount you can invest.
Investments may derive from any source -including sale of property, investment
earnings, a gift or inheritance.
There is no maximum withdrawal age (although most contracts require annuitants
to begin taking income by 85 or so).
IRAS
Tax benefits on income invested are limited to $2,000 a year.
Contributions must be made from earned income.
Withdrawals from traditional IRAs must begin at age 70-1$2 (does not apply to
Roth IRAs).
You may own an individual retirement annuity that was created by rolling over
assets from a qualified retirement plan such as a pension, 401(k) or IRA. If
that's the case, you receive the insurance benefits of a variable annuity, but
are also subject to some of the restrictions of these qualified plans.
[End Sidebar]
Most contracts offer an abundance of withdrawal options:
* You may ANNUITIZE YOUR CONTRACT, which converts your assets into an income
stream guaranteed to last for the rest of your life or a period you specify.
The sum of your payout depends on your life expectancy and the value of your
account, but you control how the payments are structured and the age at which
you begin receiving payments. Most contracts require annuitants to begin taking
income by age 85 or 90.
* If you choose a VARIABLE INCOME PAYOUT, your monthly payments will vary with
the returns of the variable funds you have selected. If those investments grow
over time, that can help your income keep up with, or even outpace, inflation.
* You can set up SYSTEMATIC WITHDRAWALS of either a specified dollar amount or
a percentage of assets in your account to be paid out at regular intervals.
This option does not guarantee a lifetime income.
* OCCASIONAL WITHDRAWALS can be made for discretionary expenses.
* A LUMP-SUM WITHDRAWAL of the entire account is the least preferred option,
because you will have to pay income taxes all at once, and possibly in a higher
tax bracket. Most contract owners take out only the money they plan to use
right away.
SOME CONSIDERATIONS: In most cases, annuitization is irreversible once payouts
begin, so make your decision carefully. Also, like most tax-deferred retirement
plans, the government usually imposes an additional 10% tax on withdrawals made
before age 59-1$2. Most variable annuities apply a contingent deferred sales
charge to withdrawals of principal made within a contract's early years.
UNDERSTANDING THE COSTS
The advantages of tax-deferral, a guaranteed death benefit and the
annuitization option come at a price - in the form of annual charges by the
insurance company that issues your contract. Leaving your variable annuity
intact for the long haul, though, increases the likelihood that your gains and
the impact of tax deferral will offset these costs.
Asset charges generally run about 1% to 1-1$2% a year, depending on the insurer
and the type of contract you buy; they cover service and administrative costs
and compensate the insurance company for the assumption of certain risks. Some
variable annuities also charge a flat yearly contract fee - typically less than
$50 - to cover record-keeping costs. Like mutual fund investors, contract
owners are also subject to annual fees charged by the investment adviser that
manages the variable funds. Both Capital Research and Management Company,
American Legacy's investment adviser, and Lincoln Life are committed to keeping
annual expenses as low as possible.
Finally, there are penalties for dipping into your savings too soon. Because
variable annuities are viewed primarily as retirement vehicles, the government
usually extracts an additional 10% tax from earnings withdrawn before age
59-1/2. And while variable annuities are not typically subject to an up-front
sales charge, most impose a contingent deferred sales charge on purchase
payments that are withdrawn in the early years of a contract. These charges
typically begin at 6% or 7% a year during a contract's first two years, and
then decline by a percentage point each year after that until reaching 0%.
[Begin Sidebar]
MODERATING RISK
Financial markets can be turbulent, particularly over the short term. Although
price declines are normal, they make many investors uncomfortable. It's
important to keep your risk tolerance in mind when you invest, but there are a
few steps you can take to help mitigate that volatility:
* SPREAD YOUR INVESTMENTS ACROSS DIFFERENT TYPES OF ASSETS to minimize the
likelihood that your entire portfolio will decline at the same time.
* Use the money market option or the DOLLAR COST AVERAGING account as a base
from which to make automatic, tax-free transfers into the variable funds. While
it cannot assure a profit or protect you from loss, dollar cost averaging can
give you the discipline to avoid making sizable investments at market peaks.
You should also consider your willingness to continue making purchases during
periods of declining prices.
* MAINTAIN A LONG-TERM PERSPECTIVE. The value of stocks and bonds has tended to
increase over the long term, particularly when distributions are reinvested, as
they are with variable annuities.
* CHOOSE AN EXPERIENCED INVESTMENT ADVISER. Since 1931, Capital Research, which
manages the variable funds in American Legacy, has invested with a long-term
focus based on thorough research and careful attention to risk.
[End Sidebar]
[Begin Sidebar]
INCOME FOR RETIREMENT
[illustration of piggy bank with coins falling into slot]
[End Sidebar]
A LEGACY FOR THE FUTURE
The minimum death benefit guarantee typically stipulates that if you die before
your contract annuitizes, beneficiaries will receive the amount of your
principal investment, less any withdrawals, or the current value of your
account, whichever is higher. You select the payout schedule; the amount they
receive will depend on the particular features of the contract.
Bear in mind, though, that your heirs will owe income taxes (and potential
estate taxes) upon receiving a death benefit, so it is a good idea to make
provisions that minimize their eventual tax burden. For example, you might
prevent your beneficiary's having to pay at a higher income tax rate by
selecting a payout that extends over his or her lifetime rather than in a lump
sum.
[Begin Sidebar]
YOU MAY CHOOSE TO CONVERT YOUR ASSETS INTO AN INCOME STREAM GUARANTEED TO LAST
THE REST OF YOUR LIFE.
[End Sidebar]
That said, variable annuities are best used to fund your own retirement. If you
have earmarked a portion of your assets for your family, many insurers also
carry variable life insurance products, which not only offer insurance
protection, investment flexibility and the potential for tax-deferred growth,
but pass on to your heirs income-tax-free. Given the complexity of estate tax
laws, it is always best to consult your tax or financial adviser.
<TABLE>
American Variable Insurance Series Global Growth Fund
Investment Portfolio
<S> <C> <C> <C> <C>
Where the funds are invested Dec. 31, 1999 Nov. 30, 1999
The Americas 35.06 36.17
Asia/Pacific 29.95 29.59
Europe 25.13 26.48
Other 0.80 0.90
Cash & Cash Equivalents 9.06 6.86
LARGEST INDIVIDUAL EQUITY SECURITIES
Dec. 31, 1999 Nov. 30, 1999
Percent of Percent of
Net Assets Net Assets
Murata Manufacturing 2.6 Fujitsu Support 2.67
Fujitsu Support and Services 2.5 and Services
Infosys Technologies 2.2 Murata Manufacturing 2.32
Chartered Semiconductor Manufacturing 2.1 AstraZeneca 2.01
Mannesman 1.9 Chartered Semiconductor 1.97
Oracle 1.7 Manufacturing
AstraZeneca 1.5 Infosys Technologies 1.75
Telefonaktiebolaget LM Ericsson 1.4 Telefonaktiebolaget 1.47
Microsoft 1.3 LM Ericsson
Fuji Television Network 1.3 Mannesmann 1.42
Microsoft 1.33
Oracle 1.33
United Pan-Europe 1.26
Communications
Dec. 31, 1999 Nov. 30, 1999
Number Market Value Number Market Value
of Shares of Shares
(000) (000)
Equity Securitites (common and preferred stocks)
- --------------------------------------------
ELECTRONIC COMPONENTS - 11.23% / 11.21%
Murata Manufacturing Co., Ltd. (Japan) 82,00 $ 19,2 82,000 $ 13,659
Microchip Technology Inc. (USA) (1) 110,00 7,5 110,000 6,971
Rohm Co., Ltd. (Japan) 23,00 9,4 23,000 6,267
Samsung Electronics Co., Ltd. (South Korea) 26,22 6,1 26,227 5,431
Taiwan Semiconductor Manufacturing Co. Ltd. 1,400,00 7,4 1,150,000 5,404
(Taiwan) (1)
Texas Instruments Inc. (USA) 55,00 5,3 55,000 5,283
Samsung Electro-Mechanics Co. (South Korea) (1) 55,00 3,6 55,000 4,271
Intel Corp. (USA) 55,00 4,5 55,000 4,218
Keyence Corp. (Japan) 14,50 5,8 14,500 4,140
Venture Manufacturing (Singapore) Ltd (Singapore) 380,00 4,3 380,000 3,845
Cypress Semiconductor Corp. (USA) (1) 85,00 2,7 85,000 2,316
Applied Micro Circuits Corp. (USA) (1) 20,00 2,5 20,000 1,663
EPCOS AG (Germany) (1) 21,00 1,5 21,000 1,290
Quantum Corp. - DLT & Storage Systems 70,00 1,0 70,000 1,103
(formerly Quantum Corp.) (USA) (1)
BROADCASTING & PUBLISHING - 10.62% / 10.82%
United Pan-Europe Communications NV 75,60 9,6 75,600 7,423
(Netherlands) (1)
Grupo Televisa, SA, ordinary participation 118,00 8,0 151,000 7,371
certificates (ADR) (Mexico) (1)
Viacom Inc., Class B (USA) (1) 144,00 8,7 144,000 7,164
Fuji Television Network Inc. (Japan) (1) 72 9,9 724 6,735
Time Warner Inc. (USA) 80,00 5,7 80,000 4,935
News Corp. Ltd. (Australia) 511,52 4,9 511,522 4,432
Fox Entertainment Group, Inc., Class A (USA) (1) 160,00 3,9 160,000 3,680
Nippon Television Network Corp. (Japan) 3,50 4,1 3,500 3,346
Rogers Communications Inc., Class B (Canada) (1) 125,00 3,0 125,000 2,837
SBS Broadcasting SA (Luxembourg) (1) 60,00 2,9 60,000 2,430
Austar United Communications Ltd. (Australia) (1) 580,00 2,3 580,000 2,142
KirchMedia GmbH & Co. KGaA (Germany) (1) (2) (3) 42,00 1,8 42,000 1,854
ProSieben Media AG (Germany) 36,00 2,0 36,000 1,676
John Fairfax Holdings Ltd. (Australia) 515,00 1,5 515,000 1,462
Sogecable, SA (Spain) (1) 45,00 2,8 45,000 1,422
PRIMEDIA Inc. (USA) (1) 110,00 1,8 110,000 1,327
Washington Post Co., Class B (USA) 2,00 1,1 2,000 1,143
Ziff-Davis Inc. (USA) (1) 39,70 6 39,700 732
Sinclair Broadcast Group, Inc., Class A (USA) (1) 53,80 6 53,800 619
Insight Communications Co., LP, Class A (USA) (1) 20,00 5 20,000 495
CBS Corp. (USA) (1) 7,16 4 7,168 373
BUSINESS SERVICES - 10.83% / 10.69%
Fujisu Support & Service Inc. (Japan) 37,00 18,1 37,000 15,662
Hays PLC (United Kingdom) 360,00 5,7 360,000 5,488
Reuters Group PLC (United Kingdom) 426,14 5,9 426,140 4,787
Cendant Corp. (USA) (1) 281,00 7,4 281,000 4,654
Terra Networks, SA (Spain) (1) 91,10 4,9 91,100 3,138
Vivendi SA (France) 38,61 3,4 38,617 3,091
Rentokil Initial PLC (United Kingdom) 690,80 2,5 690,800 2,647
InterQ Inc. (Japan) (1) 6,00 3,4 3,000 2,422
Brambles Industries Ltd. (Australia) 86,60 2,3 86,600 2,379
Sabre Group Holdings, Inc., Class A (USA) (1) 50,00 2,5 50,000 2,275
eXchange Holding PLC (United Kingdom) (1) 539,00 3,0 539,000 2,101
NDS Group PLC, Class A (ADR) (USA) (1) 68,00 2,0 68,000 2,066
Yahoo! Inc. (USA) (1) 8,70 3,7 8,700 1,851
OpenTV, Class A (USA) (1) 23,00 1,8 23,000 1,777
China.com Corp., Class A (Hong Kong) (1) 31,40 2,4 15,700 1,758
Securitas AB, Class B (Sweden) 90,00 1,6 90,000 1,498
Freeserve PLC (United Kingdom) (1) 314,40 3,0 314,400 1,491
Adecco SA (Switzerland) (1) 2,00 1,5 2,000 1,278
Waste Management, Inc. (USA) 60,00 1,0 60,000 975
Ratin A/S, Class B (Denmark) 6,30 7 6,300 734
United Parcel Service, Inc. Class B (USA) 5,60 3 5,600 370
Securicor Group PLC (United Kingdom) 150,00 3 150,000 364
DIVERSIFIED TELECOMMUNICATION SERVICES
- 8.18% / 9.00%
Korea Telecom Corp. (ADR) (Korea) 110,00 8,2 130,400 6,911
Telecom Italia SpA, nonconvertible savings (Italy 1,034,00 6,2 1,034,000 5,572
Telecom Italia SpA 110,00 1,5 110,000 1,203
Deutsche Telekom AG (Germany) 111,47 7,9 111,479 6,382
Teleglobe Inc. (Canada) 221,00 5,0 221,000 5,480
Telefonica, SA (ADR) (Spain) (1) 85,76 6,7 85,763 5,328
AT&T Corp. (USA) 66,00 3,3 66,000 3,688
Nippon Telegraph and Telephone Corp. (Japan) 19 3,2 190 3,423
Global TeleSystems Group, Inc. (USA) (1) 100,00 3,4 100,000 3,194
Kingston Communications (HULL) PLC 220,00 2,6 220,000 2,451
(United Kingdom) (1)
Cable & Wireless Communications PLC 211,10 2,9 211,100 2,376
(United Kingdom) (1)
eireann PLC (Ireland) 437,50 1,8 437,500 1,740
Telefonos de Mexico, SA de CV, Class L 16,00 1,8 16,000 1,481
(ADR) (Mexico)
Telecom Argentina STET-France Telecom SA, 47,00 1,6 47,000 1,380
Class B (ADR) (Argentina)
Global Crossing Ltd. (USA - Incorporated 26,00 1,3 26,000 1,134
in Bermuda) (1)
Equant NV, New York registered (Netherlands) (1) 10,60 1,1 10,600 999
Compania de Telecomunicaciones de 6,03 1 6,030 111
Chile SA (ADR) (Chile)
HEALTH & PERSONAL CARE - 5.83% / 6.79%
AstraZeneca PLC (United Kingdom) 267,36 11,1 259,365 11,643
AstraZeneca PLC (ADR) 3,00 1 3,000 134
Pfizer Inc (USA) 212,45 6,8 147,450 5,336
Avon Products, Inc. (USA) 142,90 4,7 142,900 5,207
Fujisawa Pharmaceutical Co. Ltd. (Japan) 165,00 4,0 165,000 4,475
Forest Laboratories, Inc. (USA) (1) 44,00 2,7 44,000 2,252
QLT PhotoTherapeutics Inc. (Canada) (1) 50,00 2,9 50,000 2,231
Guidant Corp. (USA) (1) 66,00 3,1 36,000 1,800
Omnicare, Inc. (USA) 130,00 1,5 130,000 1,763
Luxottica Group SpA (ADR) (Italy) 100,00 1,7 100,000 1,750
Glaxo Wellcome PLC (United Kingdom) 52,90 1,5 52,900 1,613
Cardinal Health, Inc., (USA) 35,00 1,6 30,000 1,569
Genentech, Inc. (USA) (1) 1,60 2 1,600 138
WIRELESS TELECOMMUNICATION SERVICES
- 5.64% / 5.94%
Mannesmann AG (ADR) (Germany) 39,65 9,6 39,650 8,327
Mannesmann AG (formerly Orange PLC) 18,52 4,4 192,000 5,772
DDI Corp. (Japan) 48 6,5 480 6,663
China Telecom (Hong Kong) Ltd. (ADR) 31,00 3,9 31,000 3,259
(People's Republic of China) (1)
China Telecom (Hong Kong) Ltd. (1) 270,00 1,6 270,000 1,450
Tele Celular Sul Participacoes SA, preferred 106,50 3,3 106,500 2,130
nominative (ADR) (Brazil)
Telesystem International Wireless Inc. 80,00 2,9 80,000 1,932
(Canada) (1)
Tele Nordeste Celular Participacoes SA, 68,90 3,4 68,900 1,791
preferred nominative (ADR) (Brazil)
Vodafone AirTouch PLC (formerly Airtouch 25,00 1,2 25,000 1,180
Communications) (ADR) (United Kingdom)
Crown Castle International Corp. (USA) (1) 55,00 1,7 55,000 1,158
Stet Hellas Telecommunications SA (ADR) 35,30 1,0 35,300 697
(Greece) (1)
Partner Communications Co. Ltd (ADR) 29,00 7 29,000 544
(Israel) (1)
DATA PROCESSING & REPRODUCTION - 4.62% / 5.21%
Microsoft Corp. (USA) (1) 86,00 10,0 86,000 7,830
Oracle Corp. (USA) (1) 110,00 12,3 115,000 7,798
Documentum, Inc. (USA) (1) 35,00 2,0 139,900 4,704
Computer Associates International, Inc. (USA) 70,00 4,8 70,000 4,550
PeopleSoft, Inc. (USA) (1) 150,00 3,1 150,000 2,822
Rambus Inc. (USA) (1) 27,000 1,905
Storage Technology Corp. (USA) (1) 50,00 9 50,000 988
Momentum Business Applications, Inc., 5,00 5,000 41
Class A (USA) (1)
ELECTRICAL & ELECTRONICS - 5.04% / 4.75%
Chartered Semiconductor Manufacturing Ltd 217,50 15,8 217,500 11,582
(ADR) (Singapore) (1)
Telefonaktiebolaget LM Ericsson, Class B 157,50 10,1 177,500 8,611
(Sweden)
Nortel Networks Corp. (Canada) 66,80 6,7 66,800 4,943
Nokia Corp., Class A (ADR) (Finland) 20,00 3,8 20,000 2,764
BANKING - 2.72% / 3.28%
Bank of America Corp. (USA) 87,00 4,3 77,000 4,505
Bank of Nova Scotia (Canada) 161,00 3,4 161,000 3,474
Banque Nationale de Paris (France) 33,35 3,0 33,350 3,056
Banque Nationale de Paris, guaranteed value 14,95 14,950 64
certificates, expire 2002 (1)
Washington Mutual, Inc. (USA) 75,00 1,9 75,000 2,175
DBS Group Holdings Ltd. (formerly Development 151,19 2,4 151,190 1,962
Bank of Singapore Ltd.) (Singapore)
ABN AMRO Holding NV (Netherlands) 66,72 1,6 66,728 1,624
Westpac Banking Corp. (Australia) 215,66 1,4 215,666 1,453
Toronto-Dominion Bank (Canada) 39,20 1,0 39,200 944
Sakura Bank Ltd 20,00 116
METALS: NONFERROUS - 2.28% / 2.17%
Freeport-McMoRan Copper & Gold Inc., 335,00 7,0 335,000 5,297
Class B (USA) (1)
Alcoa Inc. (USA) 78,50 6,5 76,500 5,011
Billiton PLC (United Kingdom) 500,00 2,9 500,000 2,412
MERCHANDISING - 1.85% / 2.16%
Dixons Group PLC (United Kingdom) 120,00 2,8 120,000 2,555
Consolidated Stores Corp. (USA) (1) 113,70 1,8 113,700 1,791
Ito-Yokado Co., Ltd. (Japan) 16,00 1,7 16,000 1,733
Limited Inc. (USA) 40,00 1,7 40,000 1,698
Woolworths Ltd. (Australia) 420,38 1,4 420,385 1,421
Kingfisher PLC (United Kingdom) 140,86 1,5 140,866 1,311
Sunglass Hut International, Inc. (USA) (1) 89,00 1,0 89,000 1,090
Cifra, SA de CV (ADR) (Mexico) (1) 60,00 1,2 60,000 1,087
LEISURE & TOURISM - 2.10% / 2.04%
Seagram Co. Ltd. (Canada) 80,00 3,5 80,000 3,485
SFX Entertainment, Inc., Class A (USA) (1) 110,00 3,9 80,500 2,717
Village Roadshow Ltd., Class A, 1,131,60 1,9 1,131,601 2,133
5.50% preferred (Australia)
go.com (USA) (1) 69,00 1,6 69,000 1,867
Granada Group PLC (United Kingdom) 150,00 1,5 150,000 1,296
Carnival Corp. (USA) 7,10 3 7,100 313
Walt Disney Co. (USA) 76,90 2,2 7,000 195
MULTI- INDUSTRY - 2.06% / 1.93%
PT Multimedia (Indonesia) (1) 100,00 5,6 100,000 3,939
First Pacific Co. Ltd. (Hong Kong) 6,161,37 4,7 6,161,370 3,332
Orkla AS, Class A (Norway) 122,28 2,1 122,285 1,881
Preussag AG (Germany) 32,81 1,8 32,811 1,647
Lend Lease Corp. Ltd. (Australia) 43,90 6 43,900 561
ELECTRONIC INSTRUMENTS - 2.08% / 1.92%
Applied Materials, Inc. (USA) (1) 70,00 8,8 70,000 6,821
KLA - Tencor Corp. (USA) (1) 40,00 4,4 40,000 3,382
ADVANTEST CORP. (Japan) 6,60 1,7 6,600 1,106
IT CONSULTING & SERVICES - 2.27% / 1.75%
Infosys Technologies Ltd. (ADR) (India) 50,00 16,5 50,000 10,300
CHEMICALS - 1.23% / 1.60%
Monsanto Co. (USA) 115,00 4,0 115,000 4,852
BOC Group PLC (United Kingdom) 145,00 3,1 145,000 3,004
Valspar Corp. (USA) 40,00 1,6 40,000 1,568
AUTOMOBILES - 1.27% / 1.57%
Suzuki Motor Corp. (Japan) 281,00 4,1 281,000 4,147
Bayerische Motoren Werke AG (Germany) 74,36 2,2 74,360 1,984
Nissan Motor Co., Ltd. (Japan) (1) 357,00 1,4 357,000 1,669
Honda Motor Co., Ltd. (Japan) 39,00 1,4 35,000 1,447
RECREATION & OTHER CONSUMER PRODUCTS
- 1.07% / 1.42%
EMI Group PLC (United Kingdom) 459,40 4,4 557,000 4,589
Shimano Inc. (Japan) 120,00 2,1 120,000 2,357
Hasbro, Inc. (USA) 35,00 6 35,000 754
edel music AG (Germany) (1) 16,00 5 16,000 619
APPLIANCES & HOUSEHOLD DURABLES
- 1.53% / 1.26%
Sony Corp. (Japan) 29,60 8,7 29,600 5,507
THOMSON multimedia (France) (1) 43,30 2,3 43,300 1,875
INDUSTRIAL COMPONENTS - 0.84% / 0.96%
THK Co., Ltd (Japan) 120,00 4,8 120,000 4,690
NGK Spark Plug Co., Ltd. (Japan) 135,00 1,2 135,000 974
AEROSPACE & MILITARY TECHNOLOGY
- 0.79% / 0.95%
Bombardier Inc., Class B (Canada) 280,00 5,7 280,000 5,548
ENERGY SOURCES - 0.81% / 0.68%
Norsk Hydro AS (Norway) 80,00 3,3 40,000 1,563
Woodside Petroleum Ltd. (Australia) 142,00 1,0 142,000 1,013
TOTAL FINA SA, Class B (formerly TOTAL), 10,00 6 10,000 661
Class B (ADR) (France)
"Shell" Transport and Trading Co., PLC, 10,00 4 10,000 456
New York registered (United Kingdom)
Fletcher Challenge Energy (New Zealand) 123,03 3 123,030 278
WHOLESALE & INTERNATIONAL TRADE
- 0.55% / 0.63%
Li & Fung Ltd. (Hong Kong-Incorporated 1,600,00 4,0 1,600,000 3,678
in Bermuda)
FINANCIAL SERVICES - 0.40% / 0.49%
Shohkoh Fund & Co., Ltd. (Japan) 4,00 1,5 3,000 1,627
Capital One Financial Corp. (USA) 27,00 1,3 27,000 1,257
REAL ESTATE - 0.39% / 0.47%
Mandamus Fastigheter AB (formerly Mandamus AB) 377,60 2,3 377,600 2,242
(Sweden)
Unibail, bearer (France) 3,70 4 3,700 481
Unibail, warrants, expire 2004 (1) 3,70 3,700 16
TRANSPORTATION: AIRLINES - 0.36% / 0.41%
British Airways PLC (United Kingdom) 400,00 2,6 400,000 2,411
MISCELLANEOUS MATERIALS & COMMODITIES
- 0.43% / 0.40%
Sealed Air Corp. (USA) (1) 60,00 3,1 50,000 2,350
FOREST PRODUCTS & PAPER - 0.29% / 0.35%
Kimberly-Clark de Mexico, SA de CV (Mexico) 540,00 2,0 540,000 2,027
FOOD & HOUSEHOLD PRODUCTS - 0.21% / 0.34%
Reckitt Benckiser (formerly Reckitt & Colman PLC 165490 1,5 105,098 2,001
and Benckiser NV (United Kingdom)
GOLD MINES - 0.21% / 0.26%
Anglogold Ltd. (South Africa) 30,00 1,5 30,000 1,530
HEALTH CARE PROVIDERS & SERVICES - 0.15% / 0.23%
Quintiles Transnational Corp. (USA) (1) 60,00 1,1 60,000 1,324
BEVERAGES & TOBACCO - 0.15% / 0.21%
Coca-Cola Amatil Ltd. (Australia) 400,00 1,0 400,000 1,256
INSURANCE - 0.13% / 0.14%
Fairfax Financial Holdings Ltd. (Canada) (1) 5,00 8 5,000 737
Fairfax Financial Holdings Ltd., Subscriptions (1 60 1 600 88
MACHINERY & ENGINEERING - 0.08% / 0.09%
Kvaerner ASA, Class A (Norway) (1) 28,84 6 28,840 544
Miscellaneous - 2.70% / 1.02%
Other equity securities in initial period 19,580 5,968
of acquisition
---------- ----------
TOTAL EQUITY SECURITIES (cost: $395,540,000 660,231 547,200
and $385,368,000, respectively)
---------- ----------
Principal Principal
Amount Amount
Short-Term Securities (000) (000)
- -------------------------------------------- -------- --------
Corporate Short-Term Notes - 7.22% / 4.95%
Wal-Mart Stores Inc. 5.26% due 12/17/1999 (2) $ 7,000 6,983
Alcoa Inc. 5.30% due 12/1/1999 6,500 6,499
Ford Motor Credit Co. 5.32% due 12/8/1999 5,000 4,994
Associates Corp. of North America 5.71% 4,600 4,599
due 12/1/1999
Xerox Capital (Europe) PLC 5.30% due 12/9/1999 3,500 3,495
Caisse d'amortissement de la dette sociale 2,500 2,499
5.20% due 12/3/1999
National Australia Funding (Delaware) Inc. $ 12,600 12,569
4.50%-5.95% due 1/3/2000-2/2/2000
Toyota Motor Credit Corp 6.00%-6.25% due 12,40 12,377
1/10/2000-1/13/2000
Amer Honda Finance Corp. 6.02% due 2/10/2000 10,00 9,932
DaimlerChrysler AG 5.99% due 1/31/2000 9,60 9,550
Sony Capital Corp 6.38% due 1/11/2000 5,00 4,990
BMW US Capital Corp CP 6.55% due 1/12/2000 3,00 2,993
Federal Agency Discount Notes - 1.68% / 4.35%
Fannie Mae 5.20%-5.48% due 12/13/1999-2/17/2000 7,50 7,4 16,000 15,965
Federal Home Loan Banks 5.36%-5.75% 8,000 7,988
due 12/10/1999-2/15/2000
Freddie Mac 5.20%-5.75% due 12/15/1999-2/15/2000 4,80 4,7 1,600 1,597
Non-U.S. Currency - 0.03% / 0.03%
New Taiwanese Dollar NT$6,410 2 NT$6,362 201
---------- ----------
TOTAL SHORT-TERM SECURITES (cost: 64,825 54,820
$64,822,000 and $54,819,000, respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 725,056 602,020
$460,362,000 and $440,187,000, respectively)
Net cash, receivables and payables 971 (14,503)
---------- ----------
NET ASSETS 726,027 587,517
========== ==========
(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
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series Global
Small Capitalization Fund Investment Portfolio,
December 31, 1999 and November 30, 1999
<S> <C> <C>
Where the Fund's Assets Are Invested December 31, 19 November 30, 1999
Percent of Percent of
Net Assets Net Assets
The Americas 42.00% 39.18%
Europe 15.33% 14.59%
Asia/Pacific 29.50% 32.88%
Other Countries 3.23% 3.17%
Cash & Equivalents 9.94% 10.18%
100.00% 100.00%
</TABLE>
<TABLE>
American Variable Insurance Series Global
Small Capitalization Fund Investment Portfolio,
December 31, 1999 and November 30, 1999
<S> <C> <C>
November 30, 1999
LARGEST INDIVIDUAL EQUITY SECURITIES Percent of
Net Assets
HNC Software 3.15%
AVEX 2.36
Yushin Precision Equipment 2.30
Applied Micro Circuits 1.74
Picvue Electronics 1.57
Baltimore Technologies 1.53
Inet Technologies 1.52
Power Integrations 1.51
hi/fn 1.38
Fujitsu Devices 1.31
December 31, 1999
LARGEST INDIVIDUAL EQUITY SECURITIES Percent of
Net Assets
HNC Software 2.96%
Great Plains Software 2.85
Yushin Precision Equipment 2.78
Baltimore Technologies 2.21
Applied Micro Circuits 2.20
Picvue Electronics 1.67
AVEX 1.56
TranSwitch 1.51
Power Integrations 1.41
Apex 1.23
</TABLE>
<TABLE>
American Variable Insurance Series
Global Small Capitalization Fund
Investment Portfolio,
December 31, 1999 and November 30, 1999
<S> <C> <C> <C> <C> <C>
December 31 November 30
Market Market Percent
Number of Value Number of Value Of Net
EQUITY SECURITIES (common and preferred stocks) Shares (000) Shares (000) Assets
- ---------------------------------------------- ---------------------------------------------
ELECTRONIC COMPONENTS - 13.47% / 13.90%
Applied Micro Circuits Corp. (USA) (1) 50,000 $ 6,36 50,000 $ 4,15 1.74
Power Integrations, Inc. (USA) (1) 85,000 4,075 90,000 3,589 1.51
hi/fn, inc. (USA) (1) 75,000 2,906 75,000 3,300 1.38
Fujitsu Devices Inc. (Japan) 80,000 3,288 80,000 3,127 1.31
Micrel, Inc. (USA) (1) 60,000 3,416 60,000 2,955 1.24
Cymer, Inc. (USA) (1) 70,000 3,220 70,000 2,800 1.17
Venture Manufacturing (Singapore) Ltd (Singapore) 168,000 1,928 168,000 1,700
Venture Manufacturing (Singapore) Ltd (2) 90,000 1,033 90,000 911 1.10
MegaChips Corp. (Japan) - - 20,000 1,545 .65
CTX Opto-Electronics Corp (Taiwan)(1) 690,000 1,429 690,000 1,528 .64
DuPont Photomasks, Inc. (USA) (1) 20,000 965 20,000 1,230 .52
Komatsu Electronic Metals Co., Ltd. (Japan) 146,500 1,176 146,500 1,082 .45
Paltek (Japan) 30,000 1,233 25,000 982 .41
Veeco Instruments Inc. (USA) (1) 19,000 890 19,000 786 .33
NatSteel Electronics Ltd (Singapore) 175,000 926 175,000 724 .30
SOITEC SA (France) (1) 8,500 1,154 8,500 610 .26
Dialer and Business Electronics, Co. Ltd (Taiwan) (1) 840,000 1,499 447,000 590 .25
Sanmina Corp. (USA) (1) 5,000 499 5,000 481 .20
Tower Semiconductor Ltd. (Israel) (1) 35,500 388 35,500 379 .16
Dallas Semiconductor Corp. (USA) 5,800 374 5,800 334 .14
Varitronix International Ltd. (Hong Kong - 150,000 345 150,000 311 .13
Incorporated in Bermuda)
Acer Laboratories Inc. (Taiwan) (1) 300,000 1,807 - -
BUSINESS SERVICES - 10.66% / 12.28%
Computer Engineer & Consulting Ltd. (Japan) 85,000 2,271 85,000 2,912 1.22
ITE Group PLC (United Kingdom) 2,137,200 2,4862,137,200 2,866 1.20
Zuken Inc. (Japan) 70,000 2,679 64,800 2,673 1.12
Flextronics International Ltd. (USA - Incorporated 60,000 2,760 30,000 2,488 1.04
in Singapore) (1)
Photobition Group PLC (United Kingdom) 480,153 2,540 480,153 2,459 1.03
Black Box Corp. (USA) (1) 29,500 1,976 29,500 1,755 .74
Sapiens International Corp. NV (Israel) (1) 100,000 1,644 100,000 1,388 .58
Nippon Kanzai (Japan) 40,000 1,272 40,000 1,378 .58
Source Information Management Co. (USA) (1) 100,000 1,675 85,000 1,296 .54
Zhejiang Expressway Co. Ltd., Class H (China) 7,000,000 1,0637,000,000 1,127 .47
Corporate Services Group PLC (United Kingdom) 578,750 944 578,750 1,090 .46
OpenTV Corp., Class A (USA) (1) - - 11,100 857 .36
London Bridge Software Holdings PLC (United Kingdom) 10,200 719 10,200 755 .32
Lason, Inc. (USA) (1) - - 30,000 731 .31
InfoCure Corp. (USA) (1) - - 40,000 643 .27
Kroll-O'Gara Co. (USA) (1) 38,700 639 38,700 634 .27
Midas, Inc. (USA) 28,700 628 28,700 617 .26
Optosof AB, Class B (Sweden) (1) 33,800 850 33,800 561 .24
Falck A/S (Denmark) 7,000 734 5,000 498 .21
MDC Communications Corp., Class A (Canada) (1) 62,400 539 62,400 474 .20
NDS Group PLC, Class A (ADR) (United Kingdom)(1) 14,100 430 14,100 428 .18
eXchange Holdings PLC (United Kingdom) (1) 106,700 600 106,700 416
International Container Terminal 4,500,000 4094,500,000 374 .16
Services, Inc. (Philippines) (1)
Seminis, Inc., Class A (USA)(1) 40,000 252 40,000 220 .09
MEDION AG (Germany) 2,800 251 700 215 .09
Launch Media, Inc. (USA) (1) 38,100 721 10,500 194 .08
Brunel International NV (Netherlands) 13,048 118 13,048 139 .06
SciQuest.com, Inc. (USA) (1) - - 2,400 79 .03
Ituran Group (Israel) (1) 26,500 1,093 - -
Metron Technology NV (Netherlands) (1) 93,000 1,494 - -
DATA PROCESSING & REPRODUCTION -
11.59% / 10.18%
HNC Software Inc. (USA) (1) 80,900 8,555 105,900 7,519 3.15
Inet Technologies, Inc. (USA) (1) 44,500 3,109 60,000 3,630 1.52
Great Plains Software, Inc. (USA) (1) 110,000 8,223 50,000 2,672 1.12
Apex Inc. (USA) (1) 110,000 3,548 90,000 2,115 .89
RadiSys Corp. (USA) (1) 45,000 2,295 45,000 2,019 .85
MMC Networks, Inc. (USA) (1) 75,000 2,578 75,000 1,477 .62
Documentum, Inc. (USA) (1) 40,000 2,395 40,000 1,345 .56
Infowave Software, Inc. (Canada) (1) (2) - - 200,000 841
Infowave Software, Inc., warrants, 100,000 858 100,000 - .35
expire 2000 (1) (3)
Great Wall Technology Co. Ltd., Class H (China) (1) - - 964,500 813
National Computer Systems, Inc. (USA) 20,000 752 20,000 768 .32
Nice Systems Ltd. (ADR) (Israel) (1) 14,000 689 14,000 573 .24
Momentum Business Applications, Inc., 60,000 472 60,000 488 .20
Class A (USA) (1)
MERCHANDISING - 8.38% / 9.98%
Lands' End, Inc. (USA) (1) 51,000 1,772 51,000 3,079 1.29
Sharper Image Corp. (USA) (1) 160,000 2,030 150,000 3,019 1.27
Tsuruha Co., Ltd. (Japan) 20,000 2,642 20,000 2,953 1.24
Sundrug Co., Ltd. (Japan) 35,000 2,432 35,000 2,753 1.16
Senshukai Co., Ltd. (Japan) 140,000 1,877 140,000 2,521 1.06
Homac Corp. (Japan) 53,000 1,478 53,000 1,555 .65
DFS Furniture Co. PLC (United Kingdom) 250,000 1,454 250,000 1,317 .55
KOMERI Co., Ltd. (Japan) 40,000 1,213 40,000 1,284 .54
Rent-Way, Inc. (USA) (1) 81,000 1,514 55,000 839 .35
Too, Inc. (USA) (1) 45,000 776 45,000 832 .35
Migros Turk TAS (Turkey) 1,950,000 1,2591,950,000 800 .34
School Specialty, Inc. (USA) (1) 45,000 681 45,000 731 .31
Michaels Stores, Inc. (USA) (1) 14,500 413 14,500 455 .19
EUROBIKE AG (Germany) 40,000 402 40,000 445 .19
Giordano International Ltd. (Hong Kong) 400,000 412 400,000 399 .17
Dickson Concepts (International) Ltd. 310,000 391 310,000 319 .13
(Hong Kong--Incorporated in Bermuda)
Bombay Co., Inc. (USA) (1) 43,900 198 43,900 220 .09
Jean Coutu Group (PJC) Inc., Class A (Canada) 57,400 1,310 7,400 166 .07
Chapters Online Inc. (Canada) (1) 66,500 922 7,500 91 .04
Alloy Online, Inc. (USA) (1) 65,000 1,024 - -
ELECTRONIC INSTRUMENTS - 7.26% / 7.55%
Picvue Electronics, Ltd. (Taiwan) 4,000,000 4,8184,000,000 3,747 1.57
ASM Pacific Technology Ltd. (Hong Kong) 1,900,000 3,3731,900,000 3,046 1.28
Disco Corp. (Japan) 15,000 3,479 15,000 3,042 1.28
TranSwitch Corp. (USA) (1) 60,000 4,354 60,000 2,820 1.18
Densei Lambda KK (Japan) 43,000 1,347 43,000 1,854 .78
Lasertec Corp. (Japan) 55,000 1,459 55,000 1,684 .71
Orbotech Ltd. (Israel) (1) 18,000 1,395 12,000 1,098 .46
Etec Systems, Inc. (USA) (1) 16,600 745 16,600 714 .30
MACHINERY & ENGINEERING - 4.20% / 3.67%
Yushin Precision Equipment Co., Ltd. (Japan) 69,480 8,024 69,480 5,472 2.30
JOT Automation Group Oyj (Finland) 322,500 3,001 322,500 2,192 .92
HISAKA WORKS, LTD. (Japan) 200,000 851 200,000 906 .38
KCI Konecranes International Corp. (Finland) 6,800 261 6,800 186 .08
RECREATION & OTHER CONSUMER PRODUCTS
- 2.58% / 3.41%
AVEX Inc. (Japan) 18,000 4,492 18,000 5,617 2.36
GTR Group Inc. (Canada) (1) 393,000 1,060 393,000 1,053 .44
Movado Group, Inc. (USA) 55,000 1,200 30,000 713 .30
Radica Games Ltd. (Hong Kong) (1) 70,000 516 70,000 560 .23
Metromedia International Group, Inc. (USA) (1) 40,000 190 40,000 180 .08
BROADCASTING & PUBLISHING - 2.95% / 2.74%
Fox Kids Europe NV (United Kingdom) (1) 200,000 2,555 200,000 2,729
Westwood One, Inc. (USA) (1) 32,100 2,440 32,100 1,838 .77
APN News & Media Ltd (Australia) 414,857 912 414,857 845 .35
United Television, Inc. (USA) 6,000 813 6,000 803 .34
Radio Unica Communications Corp. (USA) (1) 11,400 329 11,400 315 .13
SBS Broadcasting SA (Luxembourg)(1) 30,000 1,461 - -
LEISURE & TOURISM - 2.70% / 2.64%
Station Casinos, Inc. (USA) (1) - - 89,600 2,150 .90
Four Seasons Hotels Inc. (Canada) 17,000 903 17,000 839 .35
Lions Gate Entertainment Corp. (Canada) (1) 300,000 684 300,000 702
Morton's Restaurant Group, Inc. (USA) (1) 70,000 1,085 45,000 672 .28
Imax Corp. (Canada) (1) 20,000 548 20,000 544 .23
Vail Resorts, Inc. (USA) (1) 113,300 2,032 20,000 344 .14
Corporacion Interamericana de Entretenimiento, 100,000 400 100,000 332 .14
SA de CV, Class B (Mexico) (1)
Kinepolis Group NV (Belgium) 3,544 303 3,544 299 .13
CinemaxX AG (Germany) (1) 12,000 193 12,000 219 .09
Alliance Atlantis Communications Inc., nonvoting, 20,000 166 20,000 181 .08
Class B (Canada) (1)
Lions Gate Entertainment Corp., Class A, 558 1,274 - -
convertible preferred (Canada) (1) (3)
Lions Gate Entertainment Corp., warrants, 237,150 216 - -
expire 2004 (1) (3)
HEALTH & PERSONAL CARE - 2.49% / 2.00%
ViroPharma Inc. (USA) (1) 50,000 1,850 50,000 1,225 .51
Genetronics Biomedical Ltd., warrants (Canada) (1) 250,000 778 250,000 746 .31
Pharmacyclics, Inc. (USA) (1) 20,000 825 20,000 688 .29
Nobel Biocare AB (Sweden) 45,100 636 45,100 653 .27
TriPath Imaging, Inc. (USA) (1) 94,836 391 94,836 622 .26
Aviron (USA) (1) 29,200 462 29,200 469 .20
Grupo Casa Autrey, SA de CV (ADR) (Mexico) (1) 44,900 371 44,900 376 .16
Women First HealthCare, Inc. (USA) (1) 360,000 1,890 - -
IT CONSULTING & SERVICES - 2.42% / 1.77%
Baltimore Technologies PLC (United Kingdom) (1) 77,363 6,373 77,363 3,643 1.53
Data Communication System Co., Ltd. (Japan) (1) 3,000 370 3,000 369 .15
Formula Systems (1985) Ltd. (ADR) (Israel) (1) 6,100 256 6,100 214 .09
BEVERAGES & TOBACCO - 1.93% / 1.73%
Montana Group Ltd. (formerly Corporate 1,250,000 1,3671,250,000 1,340 .56
Investments Ltd.) (New Zealand)
Shikoku Coca-Cola Bottling Co., Ltd. (Japan) 80,000 1,167 80,000 1,064 .45
Robert Mondavi Corp., Class A (USA) (1) 13,600 473 13,600 523 .22
Quilmes Industrial SA, nonvoting preferred 45,000 537 45,000 523 .22
(ADR) (Luxembourg)
Simeon Wines Ltd. (Australia) 156,140 348 156,140 338 .14
BRL Hardy Ltd. (Australia) 106,531 514 71,531 332 .14
Hokkaido Coca-Cola Bottling Co., Ltd. (Japan) 85,000 1,157 - -
WIRELESS TELECOMMUNICATION SERVICES
- 1.86% / 1.60%
Rogers Cantel Mobile Communications Inc., 50,000 1,821 50,000 1,605 .67
Class B, restricted voting (Canada) (1)
Tele Centro Oeste Celular Participacoes SA, 300,000 1,950 300,000 1,200 .50
preferred nominative (ADR) (Brazil)
Tele Celular Sul Participacoes SA, preferred 50,000 1,587 50,000 1,000 .42
nominative (ADR) (Brazil)
DIVERSIFIED TELECOMMUNICATION SERVICES
- 1.57% / 1.54%
Highpoint Telecommunications Inc., 380,000 2,345 380,000 1,863
convertible preferred (Canada) (1) (2) (3)
Highpoint Telecommunications Inc. (1) 130,000 944 130,000 750 1.10
Global Light Telecommunications Inc. (Canada) (1) 81,037 1,003 81,035 871 .37
Western Telecom (France) (1) 25,000 247 25,000 184 .08
ELECTRICAL & ELECTRONICS - 1.45% / 1.23%
Kokusai Electric Co., Ltd. (Japan) 170,000 2,396 170,000 2,360 .99
Maker Communications, Inc. (USA)(1) 15,000 641 15,000 345 .14
Finisar Corp. (USA) (1) - - 1,900 219 .09
ITG Group PLC (Ireland) (1) 98,029 1,144 - -
CHEMICALS - 1.51% / 1.02%
Omni Industries Ltd. (Singapore) 1,800,000 3,2671,100,000 1,408 .59
OM Group, Inc. (USA) 12,000 413 12,000 405 .17
Ionics, Inc. (USA) (1) 11,900 335 11,900 317 .13
Cambrex Corp. (USA) 10,000 344 10,000 315 .13
HEALTH CARE PROVIDERS & SERVICES
- 0.38% / 0.79%
Medicis Pharmaceutical Corp., Class A (USA) (1) - - 23,800 836 .35
Rhon-Klinikum AG, nonvoting preferred (Germany) 21,000 748 21,000 772 .32
ICON PLC (ADR) (Ireland) (1) 20,000 340 20,000 277 .12
APPLIANCES & HOUSEHOLD DURABLES
- 0.78% / 0.78%
Fisher & Paykel Industries Ltd. (New Zealand) 590,000 2,253 590,000 1,852 .78
REAL ESTATE - 0.70% / 0.76%
Wiggins Group PLC (United Kingdom) (1) 3,000,000 1,7083,000,000 1,509 .63
Mandamus AB (Sweden) 50,000 312 50,000 297 .12
BANKING - 0.55% / 0.62%
Industrial Finance Corp. of Thailand (Thailand) (1) 2,400,000 1,1852,400,000 1,046 .44
Laurentian Bank of Canada (Canada) 33,000 405 33,000 430 .18
METALS: NONFERROUS - 0.65% / 0.59%
Minmet PLC (Ireland) (1) (2) 5,796,138 1,8735,796,138 1,411 .59
ENERGY SOURCES - 1.05% / 0.55%
Mitchell Energy & Development Corp., 30,300 653 30,300 697 .29
nonvoting, Class B (USA)
Cabre Exploration Ltd. (Canada) (1) 40,000 332 40,000 304 .13
Northrock Resources Ltd. (Canada) (1) 36,900 245 36,900 204 .09
Premier Oil PLC (United Kingdom) (1) 430,000 101 430,000 106 .04
Western Oil Sands Inc., $5.00 units (Canada) 430,000 1,487 - -
(1) (2) (3)
Western Oil Sands Inc., $7.50 units (1) (2) (3) 43,333 225 - -
MISCELLANEOUS MATERIALS & COMMODITIES
- 1.12% / 0.53%
SPARTECH Corp. (USA) 100,000 3,225 40,000 1,262 .53
UTILITIES: ELECTRIC & GAS - 0.43% / 0.51%
International Energy Group Ltd. (United Kingdom) 360,000 1,233 360,000 1,224 .51
FOOD & HOUSEHOLD PRODUCTS - 0.41% / 0.46%
PT Indofood Sukses Makmur Tbk (Indonesia) (1) 700,000 878 700,000 770 .32
Geest PLC (United Kingdom) 45,000 298 45,000 325 .14
TRANSPORTATION: AIRLINES - 0.49% / 0.41%
SkyWest, Inc. (USA) 50,000 1,400 40,000 980 .41
TEXTILES & APPAREL - 0.25% / 0.30%
Esprit Holdings Ltd. (Hong Kong) 404,010 436 404,010 408 .17
Wolford Group (Austria) 7,300 288 7,300 312 .13
INSURANCE - 0.23% / 0.29%
Independent Insurance Group PLC (United Kingdom) 155,000 674 155,000 690 .29
WHOLESALE & INTERNATIONAL TRADE
- 0.26% / 0.29%
Li & Fung Ltd. (Hong Kong - Incorporated in Bermuda) 300,000 753 300,000 690 .29
AUTOMOBILES - 0.27% / 0.28%
Mahindra & Mahindra Ltd. (GDR) (India) 70,000 780 70,000 674 .28
FINANCIAL SERVICES - 0.17% / 0.26%
Nissin Co., Ltd. (Japan) 12,000 493 12,000 617 .26
EQUITY COMMON TRUSTS - 0.21% / 0.24%
Atle AB, Class A (Sweden) 36,800 601 36,800 567 .24
INDUSTRIAL COMPONENTS - 0.48% / 0.17%
Kiekert AG (Germany) 10,000 241 10,000 256 .11
THK Co., Ltd. (Japan) 4,000 162 4,000 157 .07
BERU AG (Germany) 34,200 981 - -
BUILDING MATERIALS & COMPONENTS
- 0.01% / 0.02%
Futuris Corp. Ltd. (Australia) 29,202 41 29,202 39 .02
MISCELLANEOUS - 4.60% / 4.73%
Other equity securities in initial period 13,291 11,274 4.73
of acquisition
----------- -----------
TOTAL EQUITY SECURITIES (cost: 260,098 214,074 89.82
$181,759.000, $156,635,000)
----------- ----------==========
Principal Principal Percent
Amount Amount Of Net
SHORT TERM SECURITIES (000) (000) Assets
- ----------------------------------------------- ---------------------------------------------
CORPORATE SHORT TERM NOTES - 6.78% / 6.16%
Associates Corp. of North America 5.71% - - $ 5,00 4,999 2.10
due 12/1/1999
Wal-Mart Stores, Inc. 5.56% due 12/13/1999 (2) - - 4,000 3,992 1.67
Ford Motor Credit Co. 5.32% due 12/8/1999 - - 3,000 2,996 1.26
Sony Capital Corp. 5.30% due 12/6/1999 (2) - - 2,700 2,698 1.13
Associates First Capital Corp. 4.00% due 1/3/2000 $ 5,62 5,618 - -
Arco British Ltd. 6.10% due 1/20/2000 (2) 5,200 5,182 - -
BMW US Capital Corp. 6.01% due 1/10/2000 4,800 4,792 - -
Toyota Motor Credit Corp. 6.25% due 1/13/2000 4,000 3,991 - -
FEDERAL AGENCY DISCOUNT NOTES
- 2.99% / 4.45%
Fannie Mae 5.21%-5.30% due 12/17/1999 - - 4,935 4,923
Freddie Mac 5.19%-5.75% due 12/16/1999-2/15/2000 8,700 8,645 3,400 3,392
Federal Home Loan Banks 5.36% due 12/10/1999 - - 2,300 2,296
NON-U.S. CURRENCY - 0.04% / 0.33%
New Taiwanese Dollar NT$3,206 102NT$3,177 792
----------- ------------
TOTAL SHORT-TERM SECURITIES (cost: 28,330 26,088
$28,329,000, $26,087,000)
----------- -----------
TOTAL INVESTMENT SECURITIES (cost: 288,428 240,162
$210,088,000, $182,722,000)
Net cash, receivables and payables 374 (1,824)
----------- ------------
NET ASSETS $ 288,802 $ 238,33
=========== ===========
(1) Non-income-producing security.
(2) Purchased in a private placement
transaction; resale to the institutional buyers.
(3) Valued under procedures established
by the Board of Trustees.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
Growth Fund Investment Portfolio,
December 31 and November 30, 1999
<S> <C> <C> <C> <C>
December 31, November 30,
1999 1999
EQUITY SECURITIES 95.49% 93.71%
CASH &
EQUIVALENTS 4.51% 6.29%
Percent Percent
Of Net Of Net
Largest Individual Equity Securities Assets Assets
- --------------------------------------------- --------- ---------
Viacom 5.15% Viacom 4.84%
Texas Instruments 3.33 Texas Instruments 3.77
Time Warner 3.26 Time Warner 3.17
Applied Materials 2.70 Applied Materials 2.61
Solectron 2.58 Solectron 2.55
KLA-Tencor 2.55 KLA-Tencor 2.42
Cendant 2.43 NTT Mobile
NTT Mobile Communications Network 2.05 Communications Networ 2.15
UnitedGlobalCom 1.99 Microchip Technology 1.83
Corning 1.98 Computer Associates
International 1.74
Cendant 1.73
Market Market
Number of Value Number of Value
Equity Securities (common and preferred stocks) Shares (000) Shares (000)
- -------------------------------------------- ----------- ----------- ------------ ------------
ELECTRONIC COMPONENTS - 23.46%/23.91%
Texas Instruments Inc. 3,225,00 $ 312,42 3,225,0 $ 309,802
Solectron Corp.(1) 2,542,00 241,80 2,542,0 209,397
Microchip Technology Inc.(1) 2,365,00 161,85 2,365,0 149,882
Corning Inc. 1,437,30 185,32 1,437,3 134,657
Adaptec, Inc.(1) 2,286,00 114,01 2,286,0 123,158
Intel Corp. 1,546,60 127,30 1,596,6 122,439
Altera Corp.(1) 1,750,00 86,73 1,950,0 105,056
Linear Technology Corp. 1,420,40 101,64 1,450,0 103,041
SCI Systems, Inc.(1) 1,213,32 99,72 1,213,3 82,355
Taiwan Semiconductor Manufacturing Co. Ltd. 17,220,00 91,64 17,220,0 80,923
(Taiwan)(1)
Analog Devices, Inc.(1) 1,366,66 127,10 1,366,6 78,498
Jabil Circuit, Inc.(1) 1,100,00 80,30 1,200,0 76,725
Micron Technology, Inc.(1) 1,125,00 87,46 1,125,0 75,516
PMC-Sierra, Inc.(1) 600,00 96,18 600,0 61,838
LSI Logic Corp.(1) 1,000,00 67,50 1,000,0 60,438
Quantum Corp. - DLT & Storage Systems 2,900,00 43,86 2,900,0 45,675
(formerly Quantum Corp.)(1)
Quantum Corp. - Hard Disk Drive(1) 1,000,00 6,93 1,000,0 6,875
Maxim Integrated Products, Inc.(1) 1,200,00 56,62 600,0 48,188
Applied Micro Circuits Corp.(1) 300,00 38,17 300,0 24,937
Cypress Semiconductor Corp.(1) 850,00 27,51 850,0 23,162
Vitesse Semiconductor Corp.(1) 400,00 20,97 400,0 18,025
Seagate Technology(1) 200,00 9,31 200,0 7,400
Sanmina Corp.(1) 75,00 7,49 75,0 7,209
Newbridge Networks Corp. (Canada)(1) 300,00 6,76 300,0 6,787
BROADCASTING & PUBLISHING - 19.16%/18.21%
Viacom Inc., Class B (1) 7,100,00 429,10 7,100,0 353,225
Viacom Inc., Class A (1) 878,40 53,08 878,4 43,755
Time Warner Inc. 4,212,75 305,16 4,215,1 260,022
AT&T Corp. Liberty Media Group, Class A (1) 3,075,00 174,50 3,200,0 133,800
News Corp. Ltd., preferred (ADR) (Australia) 2,695,70 90,13 2,695,7 83,398
News Corp. Ltd. (ADR) 1,270,00 48,57 1,270,0 43,498
UnitedGlobalCom, Inc., Class A (formerly United 2,644,50 186,76 1,180,0 122,941
International Holdings, Inc.)(1)
USA Networks, Inc.(1) 2,970,00 164,09 2,970,0 118,800
CBS Corp.(1) 1,786,75 114,24 1,786,7 92,911
Fox Entertainment Group, Inc., Class A (1) 3,450,00 86,03 3,450,0 79,350
Cablevision Systems Corp., Class A (1) 600,00 45,30 700,0 47,994
Comcast Corp., Class A, special stock 550,00 27,80 1,050,0 47,447
BHC Communications, Inc., Class A (1) 286,18 45,79 286,1 45,218
AMFM Inc. (formerly Chancellor Media Corp.)(1) 185,70 14,53 185,7 13,127
Clear Channel Communications, Inc.(1) 115,73 10,32 115,7 9,302
DATA PROCESSING & REPRODUCTION - 12.08%/9.87%
Computer Associates International, Inc. 2,200,00 153,86 2,200,0 143,000
Oracle Corp.(1) 1,450,00 162,49 1,650,0 111,891
3Com Corp. (1) 3,255,00 152,98 2,730,8 108,720
Microsoft Corp.(1) 1,150,00 134,26 1,050,0 95,599
PeopleSoft, Inc.(1) 6,025,92 128,42 4,950,0 93,122
Fujitsu Ltd. (Japan) 1,880,00 85,73 1,880,0 66,997
Lexmark International Group, Inc., Class A (1) 510,00 46,15 510,0 42,330
Storage Technology Corp.(1) 1,850,00 34,10 1,850,0 36,538
Gateway, Inc. (formerly Gateway 2000, Inc.)(1) 325,70 23,47 400,0 30,550
Autodesk, Inc. 920,00 31,05 920,0 26,967
Vantive Corp.(1) - - 1,304,1 20,214
Rambus Inc.(1) - - 275,0 19,405
Compaq Computer Corp. 300,00 8,11 300,0 7,331
Mentor Graphics Corp.(1) 800,00 10,55 800,0 7,200
Cadence Design Systems, Inc. (1) 6,700,00 160,800
ELECTRONIC INSTRUMENTS - 6.92%/6.36%
Applied Materials, Inc.(1) 2,000,00 253,37 2,200,0 214,362
KLA-Tencor Corp.(1) 2,150,00 239,45 2,350,0 198,722
PE Corp.-PE Biosystems Group 727,80 87,56 727,8 59,407
Teradyne, Inc.(1) 950,00 62,70 950,0 41,384
ANTEC Corp.(1) 150,00 5,47 150,0 8,400
HEALTH & PERSONAL CARE - 6.38%/5.57%
AstraZeneca PLC (United Kingdom) 1,750,00 72,70 1,750,0 78,635
Cardinal Health, Inc. 2,150,00 102,93 1,478,0 77,318
Amgen Inc.(1) 800,00 48,05 800,0 36,450
Pfizer Inc 3,300,00 107,04 822,4 29,761
Millennium Pharmaceuticals, Inc.(1) 300,00 36,60 300,0 29,203
Sepracor Inc.(1) 290,40 28,80 290,4 28,205
Guidant Corp.(1) 500,00 23,50 500,0 25,000
MedImmune, Inc.(1) 200,00 33,17 200,0 24,038
Gilead Sciences, Inc.(1) 500,00 27,06 500,0 24,000
Omnicare, Inc. 1,650,00 19,80 1,650,0 22,378
Forest Laboratories, Inc.(1) 300,00 18,43 300,0 15,356
Warner-Lambert Co. 150,00 12,29 150,0 13,453
PE Corp.-Celera Genomics(1) 181,95 27,11 181,9 11,145
Novoste Corp.(1) 700,00 11,55 700,0 10,544
BioChem Pharma Inc. (Canada)(1) - - 400,0 9,150
Biogen, Inc.(1) 100,00 8,45 100,0 7,306
Inhale Therapeutic Systems, Inc.(1)(2) 200,00 8,51 200,0 6,125
Genentech, Inc.(1) 49,60 6,67 49,6 4,259
Guilford Pharmaceuticals, Inc.(1) 200,00 3,40 200,0 2,925
Pharmacia & Upjohn, Inc. 36,25 1,63 36,2 1,982
BUSINESS SERVICES - 5.37%/4.87%
Cendant Corp.(1) 8,564,80 227,50 8,564,8 141,855
Federal Express Corp.(1) 1,400,00 57,31 1,400,0 59,063
Juniper Networks, Inc.(1) 145,70 49,53 145,7 40,377
Concord EFS, Inc.(1) 1,276,35 32,86 1,276,3 33,823
Flextronics International Ltd. (USA - 600,00 27,60 300,0 24,881
Incorporated in Singapore)(1)
Allied Waste Industries, Inc.(1) 2,950,00 25,99 2,850,0 23,156
Robert Half International Inc.(1) 800,00 22,85 800,0 22,400
Waste Management, Inc. 1,200,00 20,62 1,200,0 19,500
United Parcel Service, Inc. Class B 186,20 12,84 186,2 12,301
Avery Dennison Corp. 200,00 14,57 200,0 11,875
Paychex, Inc. 187,50 7,50 187,5 7,488
Snyder Communications, Inc.(1) 200,00 3,85 200,0 2,688
ELECTRICAL & ELECTRONICS - 3.77%/3.51%
NEC Corp. (Japan) 4,000,00 95,32 4,000,0 93,916
Telefonaktiebolaget LM Ericsson, Class B 1,240,00 81,45 1,240,0 59,753
(ADR) (Sweden)
Nortel Networks Corp. (Canada) 780,00 78,78 780,0 57,720
General Instrument Corp.(1) 600,00 51,00 600,0 39,300
Nokia Corp., Class A (ADR) (Finland) 180,00 34,20 180,0 24,874
Lucent Technologies Inc. (formerly Ascend 165,00 12,34 165,0 12,055
Communications, Inc.)
WIRELESS TELECOMMUNICATION SERVICES
- 2.36%/2.54%
NTT Mobile Communications Network, Inc. (Japan) 5,00 192,30 5,0 176,216
Nextel Communications, Inc., Class A(1) 100,00 10,31 200,0 19,825
Crown Castle International Corp.(1) 550,00 17,66 550,0 11,584
Paging Network, Inc.(1) 1,500,00 1,21 1,500,0 1,078
BANKING - 1.74%/2.30%
Sakura Bank, Ltd. (Japan) 8,000,00 46,35 8,000,0 59,460
Washington Mutual, Inc. 1,325,00 34,45 1,325,0 38,425
Charter One Financial, Inc. 1,459,00 27,90 1,359,0 29,473
Fleet Boston Corp. (formerly BankBoston Corp.) 688,94 23,98 688,9 26,051
Wells Fargo & Co. 500,00 20,21 500,0 23,250
M&T Bank Corp. 25,00 10,35 25,0 11,750
TRANSPORTATION: AIRLINES - 1.49%/1.63%
AMR Corp.(1) 1,100,00 73,70 1,100,0 66,962
Southwest Airlines Co. 3,644,76 58,99 3,644,7 59,455
Delta Air Lines, Inc. 150,00 7,47 150,0 7,388
LEISURE & TOURISM - 1.36%/1.59%
Starbucks Corp. (1) 2,600,00 63,05 2,600,0 69,063
Carnival Corp. 1,184,80 56,64 1,184,8 52,279
go.com (1) 341,20 8,12 341,2 9,234
CHEMICALS - 1.24%/1.54%
Monsanto Co. 2,000,00 71,25 2,000,0 84,375
Valspar Corp. 750,00 31,40 750,0 29,391
Air Products and Chemicals, Inc. 400,00 13,42 400,0 12,950
ENERGY SOURCES - 1.33%/1.46%
Murphy Oil Corp. 609,70 34,98 609,7 34,448
Pogo Producing Co. 1,599,30 32,78 1,524,3 27,437
EOG Resources, Inc. 1,400,00 24,58 1,400,0 25,900
Enterprise Oil PLC (United Kingdom) 1,700,00 11,57 1,700,0 12,213
Talisman Energy Inc. (Canada)(1) 400,00 10,20 400,0 10,205
TOTAL FINA SA, Class B (ADR)(formerly TOTAL) 150,00 10,38 150,0 9,919
(France)
MERCHANDISING - 1.15%/1.27%
Consolidated Stores Corp.(1) 2,152,42 34,97 2,152,4 33,901
Sunglass Hut International, Inc.(1) 2,203,00 24,78 2,203,0 26,987
Limited Inc. 550,00 23,82 550,0 23,340
Lowe's Companies, Inc. 400,00 23,90 400,0 19,925
HEALTH CARE PROVIDERS & SERVICES
- 1.25%/1.17%
Columbia/HCA Healthcare Corp. 2,890,30 84,72 1,468,1 40,006
Quintiles Transnational Corp.(1) 800,00 14,95 1,800,0 39,712
Universal Health Services, Inc., Class B (1) 500,00 18,00 500,0 16,469
FINANCIAL SERVICES - 0.97%/1.10%
Capital One Financial Corp. 685,70 33,04 685,7 31,928
Household International, Inc. 700,00 26,07 700,0 27,694
Providian Financial Corp. 200,00 18,21 200,0 15,825
Fannie Mae 225,00 14,04 225,0 14,990
BEVERAGES & TOBACCO - 0.67%/0.77%
Coca-Cola West Japan Co. Ltd. (formerly 800,00 33,66 800,0 32,290
Kita Kyushu Coca-Cola Bottling Co., Ltd.) (Japan)
Philip Morris Companies Inc. 655,00 15,18 655,0 17,235
PepsiCo, Inc. 400,00 14,10 400,0 13,825
TEXTILES & APPAREL - 0.69%/0.73%
NIKE, Inc., Class B 1,300,00 64,43 1,300,0 59,800
DIVERSIFIED TELECOMMUNICATION
SERVICES - 0.54%/0.67%
Teleglobe Inc. (Canada) 1,535,00 34,83 1,535,0 38,253
MCI WorldCom, Inc.(1) 300,00 15,91 200,0 16,537
INSURANCE - 0.55%/0.61%
XL Capital Ltd. (Bermuda - Incorporated in the 710,00 36,83 710,0 36,210
Cayman Islands)
MGIC Investment Corp. 250,00 15,04 250,0 14,125
MISCELLANEOUS MATERIALS & COMMODITIES
- 0.47%/0.49%
Sealed Air Corp.(1) 850,00 44,04 850,0 39,950
RECREATION & OTHER CONSUMER
PRODUCTS - 0.34%/0.44%
Hasbro, Inc. 1,675,00 31,93 1,675,0 36,117
FOOD & HOUSEHOLD PRODUCTS - 0.31%/0.35%
Keebler Foods Co.(1) 600,00 16,87 600,0 16,537
Dole Food Co., Inc. 750,00 12,18 750,0 12,000
UTILITIES: ELECTRIC & GAS - 0.14%/0.18%
Questar Corp. 850,00 12,75 850,0 14,609
ENERGY EQUIPMENT - 0.09%/0.11%
Schlumberger Ltd. (Netherlands Antilles) 150,00 8,43 150,0 9,009
MACHINERY & ENGINEERING - 0.03%/0.04%
Thermo Electron Corp.(1) 200,00 3,00 200,0 3,000
TRANSPORTATION: RAIL & ROAD - 0.03%/0.03%
Wisconsin Central Transportation Corp.(1) 200,00 2,68 200,0 2,806
Miscellaneous - 1.60%/2.39%
Other equity securities in initial period 149,962 196,489
of acquisition
------------ ------------
TOTAL EQUITY SECURITIES (cost: 8,950,427 7,691,068
$4,602,249,000 and $4,462,086,000, respectively)
------------ ------------
Principal Principal
Amount Amount
SHORT-TERM SECURITIES (000) (000)
- -------------------------------------------- ------------------------ ------------ ------------
CORPORATE SHORT-TERM NOTES - 4.01%/6.59%
Park Avenue Receivables Corp. 5.95%-5.97% $ 45,00 44,92 $ 45,0 44,691
due 1/10-1/11/2000 (2)
PACCAR Financial Corp. 5.47%-5.79% due 10,00 9,93 36,0 35,809
12/20/1999-2/7/2000
BellSouth Capital Funding Corp. 5.67%-5.84% 10,00 9,92 36,0 35,568
due 2/10-2/16/2000 (2)
American Express Credit Corp. 5.28%-5.31% - - 35,6 35,558
due 12/1-12/17/1999
SBC Communications Inc. 5.67%-5.77% 21,28 21,23 35,6 35,285
due 1/14-2/18/2000 (2)
National Rural Utilities Cooperative Finance Corp 15,00 14,90 35,0 34,804
5.30%-5.80% due 12/9/1999-2/7/2000
Pfizer Inc 5.80%-5.93% due 1/19-3/1/2000 (2) 34,30 34,09 34,3 33,926
International Lease Finance Corp. 5.76%-5.91% 18,72 18,63 33,2 32,887
due 2/1-2/3/2000
Kellogg Co. 5.80% due 3/8/2000 (2) 17,50 17,31 33,0 32,475
Motiva Enterprises LLC 5.90% due 1/27/2000 30,00 29,86 30,0 29,718
Procter & Gamble Co. 5.87%-5.90% due 2/4/2000 - - 27,3 27,007
General Electric Capital Corp. 5.84% due 1/20/200 26,00 25,91 26,0 25,784
Fortune Brands Inc. 5.90%-6.08% due 37,60 37,44 20,0 19,818
1/24-1/25/2000 (2)
Eastman Kodak Co. 5.67% due 1/28/2000 20,00 19,90 20,0 19,809
Minnesota Mining & Manufacturing Co. 20,00 19,82 20,0 19,729
5.84% due 2/22/2000
Halliburton Co. 5.27%-5.28% due 12/8-12/10/1999 - - 19,0 19,065
Bestfoods 5.30%-5.47% due 12/10-12/21/1999 (2) - - 18,8 18,760
Monsanto Co. 5.32% due 12/14/1999 - - 15,0 14,969
Lucent Technologies Inc. 5.75%-6.00% 25,00 24,76 15,0 14,794
due 2/23-3/2/2000
Equilon Enterprises, LLC 5.87% due 2/3/2000 10,40 10,34 10,4 10,288
Associates First Capital Corp. 4.00% due 1/3/2000 14,80 14,79 - -
Scripps (E.W.) Co. 6.02% due 3/16/2000 (2) 11,50 11,35 - -
Anheuser Busch Co. 6.05% due 2/11/2000 5,60 5,56 - -
Duke Energy Corp. 6.08% due 2/18/2000 3,90 3,86 - -
Avon Capital Corp. 6.70% due 1/6/2000 (2) 1,10 1,09 - -
FEDERAL AGENCY DISCOUNT NOTES - 0.48%/0.33%
Freddie Mac 5.20%-5.94% due 12/13/1999-2/15/2000 34,95 34,69 27,100 26,862
Fannie Mae 5.67% due 2/24/2000 10,00 9,91 - -
NON-U.S. CURRENCY - 0.04%/0.05%
New Taiwanese Dollar NT$126,350 4,02 NT$125,305 3,965
------------ ------------
TOTAL SHORT-TERM SECURITIES (cost: 424,359 571,571
$424,141,000 and $571,404,000, respectively)
------------ ------------
TOTAL INVESTMENT SECURITIES (cost: 9,374,786 8,262,639
$5,026,390,000 and $5,033,490,000, respectively)
Net cash, receivables and payables (2,012) (55,659)
------------ ------------
NET ASSETS $ 9,372,774 $ 8,206,980
============= =============
(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
</TABLE>
<TABLE>
American Variable Insurance Series
International Fund
Investment Portfolio
<S> <C> <C> <c. <C>
Where the Fund's Assets Are Invested
Dec. 31, 1999 Nov. 30, 1999
Percent of Percent of
Net Assets Net Assets
-------- --------
EUROPE 48.73% 49.33%
ASIA/PACIFIC 35.06% 34.86%
THE AMERICAS 8.57% 8.76%
OTHER COUNTRIES 1.89% 1.75%
CASH & EQUIVALENTS 5.75% 5.30%
Largest Individual Stocks
Dec. 31, 1999 Nov. 30, 1999
Mannesmann 3.55% Nokia 3.35%
Nokia 3.37%Telefonos de Mex 2.49%
Rohm 2.59% Telefonica 2.28%
Telefonos de Mexico 2.58% Orange 2.20%
Telefonica 2.36% Mannesmann 2.13%
Sony 2.24% Rohm 2.02%
Mediaset 2.04%Telefonaktiebola 1.97%
Telefonaktiebolaget LM Ericsson 2.04% LM Ericsson
Deutsche Telekom 1.97% AstraZeneca 1.96%
Murata Manufacturing 1.83%Samsung Electro 1.88%
Mechanics
Deutsche Telekom 1.86%
Dec. 31, 1999 Nov. 30, 1999
Market Market
Number of Value Number of Value
Stocks (common and preferred) Shares (000) Shares (000)
- -------------------------------------------- -------- -------- -------- --------
BROADCASTING & PUBLISHING
- 17.89%/15.45%
Mediaset SpA (Italy) 5,967,00 $92,095 5,967,000 $68,164
United Pan-Europe Communications NV 600,00 76,65 600,000 58,910
(Netherlands) (1)
CANAL + (France) 497,67 72,34 497,672 41,145
Flextech PLC (United Kingdom) (1) 2,250,00 42,74 2,250,000 38,953
Metropole Television (France) 106,00 52,46 106,000 34,905
Fuji Television Network Inc. (Japan) (1) 4,13 56,62 3,733 34,728
Television Broadcasts Ltd. (Hong Kong) 5,089,30 34,70 5,089,300 33,094
KirchMedia GmbH & Co. KGaA (Germany) 675,51 29,79 675,511 29,825
(1) (2) (3)
British Sky Broadcasting Group PLC 2,200,00 35,53 2,200,000 29,163
(United Kingdom) (1)
Television Francaise 1 SA (France) 80,00 41,85 80,000 29,002
Seat Pagine Gialle SpA (Italy) 20,000,00 43,90 20,000,000 23,161
Austar United Communications Ltd. 6,508,20 26,06 5,898,200 21,781
(Australia) (1)
Sogecable, SA (Spain) (1) 660,10 42,10 660,100 20,866
Nippon Television Network Corp. (Japan) 21,00 24,66 21,000 20,074
News Corp. Ltd. (ADR) (Australia) 362,00 13,84 362,000 12,399
News Corp. Ltd., preferred (ADR) 181,00 6,05 181,000 5,600
News Corp. Ltd., preferred 201,48 1,72 201,480 1,568
ProSieben Media AG (Germany) 400,00 23,21 400,000 18,617
Grupo Televisa, SA (ADR)(Mexico) (1) 360,00 24,57 360,000 17,573
Publishing & Broadcasting Ltd. (Australia) 2,350,00 17,94 2,350,000 15,471
Modern Times Group MTG AB, Class B 61,00 16,16 61,000 10,500
(ADR) (Sweden) (1)
Modern Times Group MTG AB, Class A (1) 101,60 5,01 101,600 3,131
Axel Springer Verlag AG (Germany) 10,00 11,87 10,000 10,070
SBS Broadcasting SA (Luxembourg) (1) 158,80 7,73 158,800 6,431
Fox Kids Europe NV (Netherlands) (1) 430,00 5,49 430,000 5,867
Societe Europeenne des Satellites, SA, -- -- 8,908 1,121
Class A (FDR) (Luxembourg)
Primedia Ltd., units (South Africa) 391,63 50 391,631 399
Primedia Ltd., units, Class N 179,63 22 179,635 180
DIVERSIFIED TELECOMMUNICATION SERVICES
- 12.40%/12.09%
Telefonos de Mexico, SA de CV, Class L 1,032,00 116,10 1,032,000 95,525
(ADR) (Mexico)
Telefonica, SA (Spain) (1) 3,121,20 77,87 3,121,200 64,744
Telefonica, SA (ADR)(1) 362,93 28,60 362,931 22,547
Deutsche Telekom AG (Germany) 1,245,71 88,60 1,245,712 71,314
Telecom Italia SpA, nonconvertible savings 7,884,16 48,01 7,884,165 42,484
(Italy)
Telecom Italia SpA 345,00 4,84 345,000 3,773
Swisscom AG (Switzerland) 121,49 49,14 121,494 41,234
Nippon Telegraph and Telephone Corp. 1,85 31,68 1,850 33,328
(Japan)
Korea Telecom Corp. (ADR) (South Korea) 617,90 46,18 617,900 32,749
Videsh Sanchar Nigam Ltd. (GDR) (India) 838,60 20,79 838,600 19,288
Philippine Long Distance Telephone Co. 205,00 5,22 205,000 4,210
(Philippines)
Philippine Long Distance Telephone Co., 80,00 3,81 80,000 3,260
convertible preferred (GDR)
Philippine Long Distance Telephone Co. (ADR) 154,00 3,98 154,000 3,157
Telefonica de Argentina SA, Class B (ADR) 350,00 10,80 280,000 7,368
(Argentina)
Bayan Telecommunications Holdings Corp., 150,00 7,08 150,000 6,959
convertible preferred (Philippines) (1) (2) (3)
Bayan Telecommunications Holdings Corp. 30,30 7 30,308 74
(1) (2) (3)
Bayan Telecommunications Holdings Corp., 20,27 5 20,279 50
Class A (1) (2) (3)
Bayan Telecomunications Holdings Corp., 6,62 1 6,622 16
Class B (1) (2) (3)
Koninklijke PTT Nederland NV (Netherlands) 117,68 11,47 117,683 6,553
Telstra Corp. Ltd. (Australia) 700,00 3,80 700,000 4,083
Perusahaan Perseroan (Persero) PT Indonesian -- -- 350,300 491
Satellite Corp. (Indonesia)
Perusahaan Perseroan (Persero) PT -- -- 20,000 278
Compania de Telecomunicaciones de 26,17 47 26,170 481
Chile SA (ADR) (Chile)
ELECTRICAL & ELECTRONICS - 9.47%/9.52%
Nokia Corp. (Finland) 838,00 151,74 908,000 128,558
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 1,018,70 65,51 1,157,200 56,138
Telefonaktiebolaget LM Ericsson, Class B (ADR) 400,00 26,27 400,000 19,275
Chartered Semiconductor Manufacturing Ltd 650,80 47,50 650,800 34,655
(ADR) (Singapore) (1)
NEC Corp. (Japan) 1,414,00 33,69 1,414,000 33,199
Toshiba Corp. (Japan) 4,230,00 32,29 4,230,000 31,273
Nortel Networks Corp. (Canada) 300,00 30,30 400,000 29,600
Hitachi, Ltd. (Japan) 1,970,00 31,61 1,970,000 27,345
Premier Farnell PLC (United Kingdom) 1,000,00 7,44 1,000,000 5,428
ELECTRONIC COMPONENTS - 9.13%/9.08%
Rohm Co., Ltd. (Japan) 284,00 116,73 284,000 77,388
Samsung Electro-Mechanics Co. (South Korea) (1) 927,73 61,71 927,730 72,041
Murata Manufacturing Co., Ltd. (Japan) 351,00 82,44 411,000 68,460
Taiwan Semiconductor Manufacturing Co. Ltd. 13,393,50 71,27 13,393,500 62,941
(Taiwan) (1)
Hirose Electric Co., Ltd. (Japan) 111,00 24,88 111,000 18,631
Hon Hai Precision Industry Co. Ltd. (Taiwan) (1) 1,960,00 14,61 1,960,000 14,018
Hoya Corp. (Japan) 175,00 13,78 175,000 12,749
Samsung Electronics Co., Ltd. (South Korea) 53,60 12,56 53,600 11,099
ATI Technologies Inc. (Canada) (1) 1,000,00 13,20 1,000,000 10,958
WIRELESS TELECOMMUNICATION SERVICES
- 8.05%/8.81%
Mannesmann AG (fomerly Orange PLC) (Germany) 271,10 65,32 2,809,400 84,462
Mannesmann AG (ADR) 390,00 94,77 390,000 81,900
DDI Corp. (Japan) 2,60 35,62 2,600 36,090
China Telecom (Hong Kong) Ltd. (ADR) 314,60 40,44 314,600 33,072
(People's Republic of China) (1)
NTT Mobile Communications Network, Inc. (Japan) 81 31,34 815 28,723
Vodafone Airtouch PLC (formerly Vodafone 6,000,00 29,56 6,000,000 28,280
Group PLC) (United Kingdom)
Telecom Italia Mobile SpA (Italy) 2,000,00 22,25 2,000,000 15,604
Telecom Italia Mobile SpA, savings 1,312,80 6,23 1,312,800 5,074
SK Telecom Co., Ltd. (South Korea) 3,26 11,72 3,269 7,556
SK Telecom Co., Ltd. (ADR) 285,79 10,96 277,470 6,573
Partner Communications Co. Ltd. (ADR) 370,20 9,57 370,200 6,941
(Israel) (1)
TELECEL - Comunicacoes Pessoais, SA (Portugal) 282,00 4,91 282,000 3,731
BANKING - 4.16%/4.74%
ABN AMRO Holding NV (Netherlands) 1,937,24 48,33 1,937,245 47,151
Banque Nationale de Paris (France) 395,35 36,43 395,350 36,229
Banque Nationale de Paris, guaranteed 53,95 24 53,950 231
value certificates, expire 2002 (1)
DBS Group Holdings Ltd. (formerly Development 1,628,20 26,71 1,628,200 21,128
Bank of Singapore Ltd.) (Singapore)
Bank of Nova Scotia (Canada) 975,00 20,93 975,000 21,037
Westpac Banking Corp. (Australia) 2,400,23 16,55 2,400,238 16,176
Sakura Bank, Ltd. (Japan) 1,870,00 10,83 1,720,000 12,784
Bank of Scotland (United Kingdom) 711,63 8,26 711,635 8,468
Bangkok Bank PCL (Thailand) (1) 3,500,00 8,87 3,500,000 7,496
Fuji Bank, Ltd. (Japan) 470,00 4,56 470,000 5,654
Commonwealth Bank of Australia (Australia) 245,00 4,21 245,000 4,046
Standard Chartered Bank (United Kingdom) 101,63 1,57 101,630 1,374
BUSINESS SERVICES - 4.62%/4.33%
Terra Networks, SA (Spain) (1) 1,421,30 77,56 1,421,300 48,963
Adecco SA (Switzerland) (1) 50,00 38,94 50,000 31,959
Brambles Industries Ltd. (Australia) 925,68 25,59 925,682 25,429
Aegis Group PLC (United Kingdom) 7,350,00 26,71 7,350,000 21,121
TNT Post Groep (Netherlands) 643,19 18,40 643,198 16,452
Rentokil Initial PLC (United Kingdom) 3,144,10 11,47 3,144,100 12,047
Vivendi SA (France) 88,14 7,95 88,147 7,057
Zhejiang Expressway Co. Ltd., Class H 10,298,00 1,56 10,298,000 1,658
(People's Republic of China)
ecorp Ltd. (Australia) (1) -- -- 805,300 1,338
Metropolis Transactive Holdings Ltd. 58,76 1 58,765 8
(South Africa) (1)
MERCHANDISING - 3.00%/3.98%
Dixons Group PLC (United Kingdom) 2,800,10 67,39 2,800,100 59,624
EM.TV & Merchandising AG (Germany) 389,80 25,09 350,000 27,315
EM.TV & Merchandising AG (1) 70,20 4,52 70,200 5,302
Carrefour SA (France) -- -- 88,000 15,331
Cifra, SA de CV, Class C (Mexico) (1) 6,000,00 11,44 6,000,000 10,555
Cifra, SA de CV, Class V (1) -- -- 2,467,300 4,613
Ito-Yokado Co., Ltd. (Japan) 135,00 14,66 135,000 14,619
Kingfisher PLC (United Kingdom) 557,22 6,16 557,224 5,186
Koninklijke Ahold NV (Netherlands) -- -- 145,000 4,616
Loblaw Companies Ltd. (Canada) 150,00 3,65 150,000 3,511
Coles Myer Ltd. (Australia) 400,61 2,06 400,618 2,041
HEALTH & PERSONAL CARE - 2.84%/3.57%
AstraZeneca PLC (United Kingdom) 1,677,05 70,65 1,677,054 75,049
Fujisawa Pharmaceutical Co. Ltd. (Japan) 1,829,00 44,39 1,829,000 49,605
Elan Corp., PLC (ADR) (Ireland) (1) 332,80 9,81 332,800 9,110
SmithKline Beecham PLC (ADR) (United Kingdom) 50,00 3,22 50,000 3,325
APPLIANCES & HOUSEHOLD DURABLES
- 3.06%/2.59%
Sony Corp. (Japan) 340,00 100,82 340,000 63,260
Koninklijke Philips Electronics NV (Netherlands) 240,20 32,62 240,200 29,231
THOMSON multimedia (France) (1) 78,40 4,22 156,700 6,785
AUTOMOBILES - 1.74%/2.28%
Bayerische Motoren Werke AG (Germany) 1,144,00 34,87 1,622,400 43,295
Suzuki Motor Corp. (Japan) 1,700,00 24,80 1,700,000 25,087
Honda Motor Co., Ltd. (Japan) 504,00 18,74 461,000 19,061
RECREATION & OTHER CONSUMER PRODUCTS
- 1.59%/1.94%
Nintendo Co., Ltd. (Japan) 210,00 34,89 210,000 35,165
Sony Music Entertainment (Japan) Inc. (Japan) (3) 90,00 22,28 90,000 13,999
EMI Group PLC (United Kingdom) 1,500,00 14,53 1,500,000 12,359
Square Co., Ltd. (Japan) -- -- 108,600 6,628
edel music AG (Germany) (1) -- -- 160,000 6,187
ENERGY SOURCES - 1.57%/1.62%
Broken Hill Proprietary Co. Ltd. (Australia) 3,611,61 47,42 3,611,615 39,660
TOTAL FINA SA, Class B (formerly Elf Aquitaine) 48,94 6,52 48,944 6,511
(France)
TOTAL FINA SA, Class B (ADR) (formerly TOTAL) 55,00 3,80 55,000 3,637
Woodside Petroleum Ltd. (Australia) 600,00 4,43 600,000 4,279
"Shell" Transport and Trading Co., PLC, 90,00 4,43 90,000 4,106
New York registered (United Kingdom)
Norsk Hydro AS (Norway) 100,00 4,18 100,000 3,907
MULTI-INDUSTRY - 1.35%/1.44%
Orkla AS, Class A (Norway) 2,097,94 36,06 2,097,942 32,270
Lend Lease Corp. Ltd. (Australia) 962,63 13,48 962,630 12,289
Preussag AG (Germany) 160,02 8,90 160,029 8,032
Benpres Holdings Corp. (GDR) (Philippines) (1) 771,10 2,22 956,000 2,868
AEROSPACE & MILITARY TECHNOLOGY - 1.27%/1.44%
Bombardier Inc., Class B (Canada) 2,787,80 57,16 2,787,800 55,234
DATA PROCESSING & REPRODUCTION - 1.77%/1.44%
Fujitsu Ltd. (Japan) 1,070,00 48,79 1,070,000 38,132
BCE Inc. (Canada) (1) 575,00 30,81 575,000 17,069
BUILDING MATERIALS & COMPONENTS - 1.22%/1.27%
Cemex, SA de CV, (ADR) (Mexico) 1,472,61 41,04 1,472,613 36,171
Holderbank Financiere Glaris Ltd. (Switzerland) 10,00 13,69 10,000 12,526
FOOD & HOUSEHOLD PRODUCTS - 0.80%/1.21%
Nestle SA (Switzerland) 9,75 17,86 9,752 17,541
Cadbury Schweppes PLC (United Kingdom) 703,25 4,22 2,000,000 12,612
Reckitt Benckiser (formerly Reckitt & Coleman 876,37 8,22 876,375 10,532
PLC )(United Kingdom)
Groupe Danone (France) 25,00 5,88 25,000 5,798
FOREST PRODUCTS & PAPER - 0.94%/0.93%
UPM-Kymmene Corp. (Finland) 945,00 38,02 945,000 31,594
Kimberly-Clark de Mexico, SA de CV (Mexico) 1,100,00 4,27 1,100,000 4,130
IT CONSULTING & SERVICES - 1.10%/0.92%
Check Point Software Technologies Ltd. 250,00 49,68 250,000 35,406
(Israel) (1)
METALS: STEEL - 0.60%/0.81%
Kawasaki Steel Corp. (Japan) 15,125,00 27,08 15,125,000 31,268
BEVERAGES & TOBACCO - 0.71%/0.79%
South African Breweries PLC (United Kingdom) (1) 2,833,37 28,87 2,833,372 26,602
Panamerican Beverages, Inc., Class A 72,60 1,49 72,600 1,361
(Multinational-Incorporated in Panama)
Coca-Cola Amatil Ltd. (Australia) 91,60 25 408,415 1,282
Coca-Cola Beverages PLC (United Kingdom) (1) 635,93 1,21 635,937 1,249
UTILITIES: ELECTRIC & GAS - 0.63%/0.77%
Cia. Energetica de Minas Gerais - CEMIG, 826,60 18,49 826,600 15,499
preferred nominative (ADR) (Brazil)
Cia. Energetica de Minas Gerais - CEMIG, 114,074,04 1,55 131,519,048 1,574
ordinary nominative
Manilla Electric Co., Class A (GDR) 510,00 6,04 510,000 5,596
(Philippines) (2) (3)
Cia. Paranaense de Energia - COPEL, 69,62 64 480,373 3,693
Class B, preferred nominative (ADR) (Brazil)
Cia. Paranaense de Energia - COPEL, -- -- 328,207,800 1,608
ordinary nominative
Scottish Power PLC (United Kingdom) 200,00 1,47 200,000 1,772
MACHINERY & ENGINEERING - 0.70%/0.76%
GKN PLC (United Kingdom) 621,80 10,18 621,808 9,748
Metso Oyj (formerly Valmet Oy) (Finland) (1) 830,00 10,77 830,000 8,985
Mitsubishi Heavy Industries, Ltd. (Japan) 2,500,00 8,34 2,500,000 8,146
Kvaerner ASA, Class A (Norway) (1) 112,00 2,35 112,000 2,112
CONSTRUCTION & HOUSING - 0.47%/0.55%
YTL Corp. Bhd. (Malaysia) 12,000,00 19,10 10,000,000 16,316
YTL Corp. Bhd., Class A (1) -- -- 2,000,000 3,079
YTL Corp. Bhd., warrants, expire 2009 (1) 3,000,00 2,01 3,000,000 1,682
INSURANCE - 0.48%/0.50%
Royal & Sun Alliance Insurance Group PLC 1,624,00 11,74 1,624,006 10,071
(United Kingdom)
ING Groep NV (Netherlands) 100,00 6,03 100,000 5,624
AEGON NV (Netherlands) 40,00 3,85 40,000 3,625
GOLD MINES - 0.32%/0.37%
Anglogold Ltd. (South Africa) 275,00 14,17 275,000 14,023
LEISURE & TOURISM - 0.33%/0.35%
Granada Group PLC (United Kingdom) 1,100,00 11,10 1,100,000 9,500
Mandarin Oriental International Ltd. (Singapore) 5,196,21 3,63 5,742,218 4,048
INDUSTRIAL COMPONENTS - 0.19%/0.22%
Bridgestone Corp. (Japan) 175,00 3,85 175,000 4,341
Valeo (France) 50,00 3,85 50,000 3,348
Minebea Co., Ltd. (Japan) 60,00 1,02 60,000 941
REAL ESTATE - 0.17%/0.18%
Cheung Kong (Holdings) Ltd. (Hong Kong) 500,00 6,35 500,000 5,617
Mitsui Fudosan Co., Ltd. (Japan) 159,00 1,07 159,000 1,273
TRANSPORTATION: SHIPPING - 0.13%/0.13%
Stolt-Nielsen SA, Class B (ADR) (Multinational) 327,00 5,72 327,000 4,864
METALS: NONFERROUS - 0.10%/0.10%
Pechiney, Class A (France) 65,00 4,63 65,000 3,767
MISCELLANEOUS - 0.97%/0.04%
Other equity stocks in initial period 43,486 1,620
of acquisition
---------- ----------
TOTAL STOCKS (cost: $2,020,509,000 4,223,280 3,615,629
and $2,032,783,000 respectively)
---------- ----------
Principal Principal
Amount Amount
Convertible Debentures (000) (000)
- -------------------------------------------- -------- --------
BROADCASTING & PUBLISHING - 0.19%/0.22%
United News & Media PLC 6.125% 2003 #4,500 8,44 #4,500 8,311
ELECTRONIC COMPONENTS - 0.15%/0.12%
Acer Peripherals Inc. 1.25% 2006 (2) $2,000 6,70 $2,000 4,700
DIVERSIFIED TELECOMMUNICATION SERVICES
- 0.13%/0.11%
COLT Telecom Group PLC 2.00% 2006 EURO2,400 5,85 EURO2,400 4,260
ENERGY SOURCES - 0.00%/0.03%
Zhenhai Refining Chemical Co. Ltd. 3.00% -- -- $950 978
2003 (2)
ELECTRICAL & ELECTRONIC - 0.02%/0.00%
Elektrim SA 3.75% 2004 $1,000 86 -- --
---------- ----------
TOTAL CONVERTIBLE DEBENTURES (cost: 21,866 18,249
$14,279,000 and $14,380,000 respectively)
---------- ----------
TOTAL EQUITY SECURITIES (cost: 4,245,146 3,633,878
$2,034,788,000 and $2,047,163,000 respectively)
---------- ----------
Short-Term Securities
- --------------------------------------------
CORPORATE SHORT-TERM NOTES - 5.67%/4.64%
Reed Elsevier Inc. 5.87%-6.00% due 1/24/2000 (2) 31,00 30,87 31,000 30,723
Arco British Ltd. 5.35%-5.70% due -- -- 24,700 24,680
12/2-12/7/1999 (2)
Asset Securitization Corp. 5.85%-5.93% 22,90 22,73 22,900 22,614
due 2/8-2/23/2000 (2)
Xerox Capital (Europe) PLC 5.30%-5.70% -- -- 22,150 22,123
due 12/1-12/16/1999
Lloyds TSB Group PLC 5.36%-5.90% due 10,00 9,96 20,000 19,881
12/20/1999-1/24/2000
Spintab AB 5.85%-5.975% 2/17-4/17/2000 24,50 24,25 19,500 19,245
Diageo Capital PLC 5.95% due 1/18-1/19/2000 (2) 15,67 15,62 15,670 15,544
Telstra Corp. Ltd. 5.40%-5.95% due 6,48 6,37 13,392 13,366
12/13/1999-4/17/2000
ANZ (Delaware) Inc. 5.32% due 12/7/1999 -- -- 10,000 9,990
KfW International Finance Inc. 5.92%-6.05% 34,50 34,251
due 2/3-3/28/2000
Glaxo Wellcome PLC 6.00% due 2/2-2/4/2000 (2) 30,00 29,833
DaimlerChrysler AG 5.95% due 2/4/2000 15,50 15,410
Toyota Motor Credit Corp. 6.00% due 1/10/2000 13,80 13,777
UBS Finance (Delaware) Inc. 4.25% due 1/3/2000 13,40 13,395
American Honda Finance Corp. 6.02% 10,00 9,931
due 2/10/2000
Sara Lee Corp 5.87% due 1/6/2000 9,30 9,291
Toronto-Dominion Holdings Inc. 5.90% 9,00 8,949
due 2/4/2000
Anheuser-Busch Companies, Inc. 6.05% 5,80 5,759
due 2/11/2000
BMW US Capital Corp. 4.00% due 1/4/2000 3,00 2,999
National Rural Utilities Cooperative Finance Corp. 1,80 1,781
5.98% due 3/7/2000
FEDERAL AGENCY DISCOUNT NOTES - 0.00%/0.45%
Freddie Mac 5.27%-5.41% due 12/17-12/30/1999 -- -- 17,304 17,247
NON U.S. CURRENCY - 0.05%/0.06%
New Taiwanese Dollar NT$74,768 2,38 NT$74,090 2,345
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: 257,580 197,758
$257,375,000 and $197,573,000 respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 4,502,726 3,831,636
$2,292,163,000 and $2,244,736,000 respectively)
Net cash, receivables and payables 1,209 5,644
---------- ----------
NET ASSETS $4,503,935 $3,837,280
========== ==========
(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 Depositary Receipts
FDR = Fiduciary Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series New World Fund
Investment Portfolio, December 31 and November 30, 1999
<S> <C> <C> <C> <C>
Dec. 31, 1999 Nov. 30, 1999
Where the Fund's Assets Are Invested
Asia/Pacific 26.88% 27.94%
The Americas 27.11 27.56
Europe 16.57 18.46
Other Countries 6.08 6.58
Cash & Equivalent 23.36 19.46
Largest Individual Equity Securities
Dec. 31, 1999 Nov. 30, 1999
Samsung Electro-Mechanics 2.87 Samsung Electro- 4.30
Check Point Software Technologies 2.10 Mechanics
Telefonos de Mexico 2.06 Telefonos de Mexico 2.18
DBS Group Holdings 1.92 ABN AMRO Holding 2.16
Hon Hai Precision Industry 1.89 DBS Group Holdings 1.95
Migros Turk 1.82 Fuji Photo Film 1.95
ABN AMRO Holding 1.73 Check Point Softwar 1.91
Magyar Tavkozlesi 1.56 Technologies
Tele Sudeste Celular Participacoes 1.49 Avon Products 1.90
Unibanco-Uniao de Bancos Brasileiros 1.46 Hon Hai Precision 1.77
Industry
Carrefour 1.69
Magyar Tavkozlesi 1.67
Dec. 31, 1999 Nov. 30, 1999
Market Market
Number of Value Number of Value
EQUITY SECURITIES (common and preferred stocks) Shares (000) Shares (000)
- -------------------------------------------- -------- -------- -------- --------
DIVERSIFIED TELECOMMUNICATION SERVICES
- 11.26%/10.82%
Telefonos de Mexico, SA de CV, Class L 15,30 1,7 15,300 1,416
(ADR) (Mexico)
Magyar Tavkozlesi Rt. (ADR) (Hungary) 36,10 1,3 36,100 1,090
Korea Telecom Corp. (ADR) (South Korea) 14,00 1,0 14,000 742
Nortel Inversora SA, preferred, Class B 38,00 7 38,000 712
(ADR) (Argentina)
Philippine Long Distance Telephone Co. (Philippines) 30,80 7 30,800 633
Global TeleSystems Group, Inc. (USA) (1) 18,10 6 18,100 578
Compania Anonima Nacional Telefonos 23,00 5 23,000 551
de Venezuela (CANTV), Class D (ADR) (Venezuela)
Videsh Sanchar Nigam Ltd. (GDR) (India) 22,00 5 22,000 506
Mahanagar Telephone Nigam Ltd. (GDR) (India) 52,00 5 52,000 461
Telecom Argentina STET-France Telecom SA, 12,00 4 12,000 353
Class B (ADR) (Argentina)
Telefonica de Argentina SA, Class B (Argentina) 175,00 5 -- --
Telefonica de Argentina SA, Class B (ADR) 17,00 5 -- --
ELECTRONIC COMPONENTS - 6.77%/8.18%
Samsung Electro-Mechanics Co. (South Korea) (1) 36,00 2,3 36,000 2,796
Hon Hai Precision Industry Co. Ltd. (Taiwan) (1) 211,00 1,5 161,000 1,151
Samsung Electronics Co., Ltd. (South Korea) 4,90 1,1 4,400 911
Venture Manufacturing (Singapore) Ltd (Singapore) 46,00 5 46,000 466
BANKING - 9.17%/7.06%
ABN AMRO Holding NV (Netherlands) 57,70 1,4 57,703 1,404
DBS Group Holdings Ltd. (Singapore) 97,69 1,6 97,692 1,268
Yapi ve Kredi Bankasi AS (Turkey) 38,317,00 1,1 38,317,000 703
Unibanco-Uniao de Bancos Brasileiros SA, 40,40 1,2 29,400 693
units (GDR) (Brazil)
Wielkopolski Bank Kredytowy SA (Poland) 48,00 3 48,000 268
Bangkok Bank PCL (Thailand) (1) 120,00 3 120,000 257
Kookmin Bank (South Korea) 40,00 6 -- --
Shinhan Bank (South Korea) 45,00 4 -- --
Standard Chartered PLC (United Kingdom) 30,00 4 -- --
HEALTH & PERSONAL CARE - 3.81%/5.04%
Avon Products, Inc. (USA) 34,00 1,1 34,000 1,239
AstraZeneca PLC (United Kingdom) 19,10 8 19,100 854
PLIVA d.d. (GDR) (Croatia) 50,00 6 50,000 607
Kimberly-Clark Corp. (USA) 9,10 5 9,100 581
ELECTRICAL & ELECTRONICS - 3.89%/3.98%
ECI Telecom Ltd. (Israel) 33,00 1,0 33,000 827
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 13,20 8 13,200 640
Trigem Computer Inc. (South Korea) 6,40 7 6,400 635
Elektrim SA (Poland) (1) 65,00 6 65,000 486
MULTI-INDUSTRY - 3.03%/3.27%
Orkla AS, Class A (Norway) 41,14 7 41,142 633
Anglo American PLC (United Kingdom) 10,00 6 10,000 586
First Pacific Co. Ltd. (Hong Kong) 1,039,00 8 1,039,000 562
Benpres Holdings Corp. (Philippines) (1) 2,435,00 3 2,435,000 345
MERCHANDISING - 1.82%/3.17%
Carrefour SA (France) -- -- 6,300 1,098
Migros Turk TAS (Turkey) 2,355,00 1,5 2,355,000 966
WIRELESS TELECOMMUNICATION SERVICES
- 3.23%/2.83%
China Telecom (Hong Kong) Ltd. (People's Republic 120,00 7 120,000 644
of China) (1)
Tele Sudeste Celular Participacoes SA, 30,00 1,1 30,000 617
preferred nominative (ADR) (Brazil)
Telesp Celular SA, preferred nominative, 8,869,00 7 8,869,000 430
Class B (Brazil)
Partner Communications Co. Ltd. (ADR) (Israel) (1) -- -- 8,200 154
Tele Sudeste Celular Participacoes SA (Brazil) 18,898,00 -- --
BROADCASTING & PUBLISHING - 2.67%/2.80%
Matav-Cable Systems Media Ltd. (Israel) 23,00 6 23,000 571
MIH Holdings Ltd., Class A (South Africa) (1) 10,00 5 10,000 538
Grupo Televisa, SA, ordinary participation 9,60 6 9,600 469
certificates (ADR) (Mexico) (1)
Antenna TV SA (ADR) (Greece) (1) 18,70 3 18,700 245
BEVERAGES & TOBACCO - 2.14%/2.70%
Fomento Economico Mexicano, SA de CV (ADR) (Mexico) 15,30 6 15,300 580
Coca-Cola Amatil Ltd. (Australia) 170,87 4 170,878 536
South African Breweries PLC (United Kingdom) (1) 40,00 4 40,000 376
Coca-Cola Co. (USA) 4,00 2 4,000 269
METALS: NONFERROUS - 2.57%/2.66%
Alcoa Inc. (USA) 13,00 1,0 13,000 851
Freeport-McMoRan Copper & Gold Inc., Class B (USA) (1 31,00 6 31,000 490
KGHM Polska Miedz SA (GDR) (Poland) 30,00 4 30,000 389
AUTOMOBILES - 1.86%/2.49%
Suzuki Motor Corp. (Japan) 68,00 9 68,000 1,004
Honda Motor Co., Ltd. (Japan) 15,00 5 15,000 620
RECREATION & OTHER CONSUMER PRODUCTS
- 1.36%/1.95%
Fuji Photo Film Co., Ltd. (Japan) 31,00 1,1 31,000 1,267
IT CONSULTING & SERVICES - 2.10%/1.91%
Check Point Software Technologies Ltd. (Israel) (1) 8,80 1,7 8,800 1,246
FOOD & HOUSEHOLD PRODUCTS - 1.50%/1.78%
Colgate-Palmolive Co. (USA) 7,80 5 7,800 428
Sara Lee Corp. (USA) 16,00 3 16,000 388
PT Indofood Sukses Makmur Tbk (Indonesia) (1) 309,00 3 309,000 340
BUSINESS SERVICES - 1.55%/1.54%
Sabre Group Holdings, Inc., Class A (USA) 7,50 3 7,500 341
Terra Networks, SA (Spain)(1) 8,60 4 8,600 296
Korea Thrunet Co. Ltd., Class A (South Korea)(1) 4,27 2 4,270 238
Seminis, Inc., Class A (USA)(1) 23,50 1 23,500 129
MISCELLANEOUS MATERIALS & COMMODITIES
- 1.22%/1.45%
De Beers Consolidated Mines Ltd. (South Africa) 35,00 1,0 35,000 946
REAL ESTATE - 0.87%/1.02%
SM Prime Holdings, Inc. (Philippines) 1,800,00 3 1,800,000 286
Ayala Land, Inc. (Philippines) 1,162,00 3 1,162,000 276
New World China Land Ltd. (People's Republic 225,00 225,000 100
of China - Incorporated in the Cayman Islands) (1)
APPLIANCES & HOUSEHOLD DURABLES - 1.24%/1.00%
Sony Corp. (Japan) 3,50 1,0 3,500 651
ENERGY SOURCES - 0.87%/0.97%
Broken Hill Proprietary Co. Ltd. (Australia) 35,55 4 35,558 390
MOL Magyar Olaj- es Gazipari Rt. (Hungary) 12,50 2 12,500 242
TRANSPORTATION: AIRLINES - 0.66%/0.77%
AMR Corp. (USA) (1) 8,20 5 8,200 499
WHOLESALE & INTERNATIONAL TRADE - 1.66%/0.58%
Li & Fung Ltd. (Hong Kong - Incorporated in Bermuda) 164,00 4 164,000 377
Marubeni Corp (Japan) 231,00 9 -- --
FOREST PRODUCTS & PAPER - 0.47%/0.58%
Kimberly-Clark de Mexico, SA de CV, Class A (Mexico) 100,00 3 100,000 375
MISCELLANEOUS - 1.80%/1.24%
Other equity securities in initial period 1,509 807
of acquisition
---------- ----------
TOTAL EQUITY SECURITIES (cost: $45,681,000 56,322 45,423
and $42,175,000, respectively)
---------- ----------
Principal Principal
Amount Amount
BONDS & NOTES (000) (000)
- -------------------------------------------- -------- --------
BROADCASTING, ADVERTISING & PUBLISHING
- 0.27%/0.34%
Grupo Televisa, SA 0%/13.25% 2008 (2) 25 2 $ 250 223
MULTI-INDUSTRY - 0.27%/0.33%
Reliance Industries Ltd. 10.25% 2097 (3) 25 2 250 215
WIRELESS TELECOMMUNICATION SERVICES
- 0.31%/0.00%
Cellco Finance NV 12.75% 2005 25 260
NON U.S. GOVERNMENT OBLIGATIONS
- 8.27%/10.07%
Brazil (Federal Republic of):
Bearer 8.00% 2014 (4) 2,69 2,0 2,693 1,845
Global 10.125% 2027 1,00 8 1,000 800
United Mexican States Government Eurobonds, Global:
11.50% 2026 30 3 300 349
11.375% 2016 48 5 250 275
10.375% 2009 -- -- 250 259
Argentina (Republic of) 11.75% 2009 65 6 650 629
Panama (Republic of), Past Due Interest 71 5 718 536
Eurobond 6.50% 2016 (5)
Turkey (Republic of) 12.375% 2009 50 5 500 523
Philippines (Republic of) 9.875% 2019 50 4 500 510
Poland (Republic of), Past Due Interest Bond, 37 3 375 330
Bearer 5.00% 2014 (5)
Croatian Government:
Series A, 6.456% 2010 (5) 24 2 240 205
Series B, 6.456% 2006 (5) 7 78 69
Venezuela (Republic of), Global 9.25% 2027 35 2 350 224
---------- ----------
TOTAL BONDS & NOTES (cost: 7,603 6,992
$7,074,000 and $6,795,000, respectively)
---------- ----------
SHORT-TERM SECURITIES
- --------------------------------------------
CORPORATE SHORT-TERM NOTES - 14.64%/17.75%
Paccar Financial Corp. 5.47% due 12/21/1999 -- -- 1,200 1,196
CIT Group Holdings, Inc. 5.95% due 1/4/2000 1,09 1,0 1,096 1,090
Arco British Ltd. 5.36% due 12/2/1999 (3) -- -- 1,000 1,000
Corporate Asset Funding Co. Inc. 5.45% -- -- 1,000 1,000
due 12/2/1999 (3)
Bestfoods 5.30% due 12/21/1999 (3) -- -- 1,000 997
British Telecommunications PLC 5.83% due 1/19/2000 1,00 9 1,000 992
Export Development Corp. 5.80% due 1/18/2000 1,00 9 1,000 992
Spintab AB 5.92% due 1/24/2000 1,00 9 1,000 991
Sony Capital Corp. 5.30% due 12/6/1999 (3) -- -- 900 899
Vodafone Airtouch PLC 5.50% due 12/13/1999 (3) -- -- 900 898
Xerox Capital (Europe) PLC 5.30% due 12/14/1999 -- -- 800 798
DaimlerChrysler NA Holdings 5.47% due 12/10/1999 -- -- 700 699
Sara Lee Corp. 5.10% due 1/28/2000 1,30 1,2 -- --
Motiva Enterprises LLC 5.85% due 1/10/2000 1,20 1,1 -- --
Coca-Cola Co. 5.88% due 1/1/4/2000 1,10 1,0 -- --
France Telecom, SA,6.00% due 2/2/2000 (3) 1,10 1,0 -- --
Associate First Capital Corp. 4.00% due 1/3/2000 1,00 1,0 -- --
Avon Capital Corp. 6.70% due 1/6/2000(3) 1,00 9 -- --
Sony Europe Finance PLC 6.15% due 1/10/2000 (3) 94 9 -- --
BMW US Capital Corp. 6.55% due 1/12/2000 50 4 -- --
FEDERAL AGENCY DISCOUNT NOTES - 7.99%/4.52%
Fannie Mae 5.21%-5.48% due 12/2/1999-2/17/2000 2,40 2,3 1,840 1,838
Freddie Mac 5.26%-5.61% due 12/8/1999-1/27/2000 2,50 2,4 1,103 1,101
International Bank for Reconstruction 1,80 1,7 -- --
and Development 5.80% due 1/13/2000
NON-U.S. CURRENCY - 0.03%/0.03%
New Taiwanese Dollar NT$635 NT$635 20
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: 18,898 14,511
$18,898,000 and $14,511,000, respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 82,823 66,926
$71,653,000 and $63,481,000, respectively)
Net cash, receivables and payables 592 (1,843)
---------- ----------
NET ASSETS 83,415 65,083
========== ==========
(1) Non-income-producing security.
(2) Step bond; coupon rate will increase
at a later date.
(3) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
(4) Payment in kind; the issuer has the option of
paying additional securities in lieu of cash.
(5) Coupon rate may change periodically.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series Growth
Income Fund Investment Portfolio,
December 31, 1999 and November 30, 1999
<S> <C> <C> <C> <C>
Dec 31, 1999 Nov 30, 1999
EQUITY SECURITIES 87.45% 87.43%
CASH &
EQUIVALENTS 12.55% 12.57%
Percent
Of Net
Largest Individual Equity Securities Assets
- -------------------------------------------- ---------
U S WEST Communications 1.80%
Microsoft 1.75
Computer Associates International 1.72
Texas Instruments 1.70
Viacom 1.60
Albertson's 1.53
Wells Fargo 1.24
Household International 1.22
Citizens Utilities 1.14
Allied Waste Industries 1.06
Percent
Of Net
Largest Individual Stocks Assets
- -------------------------------------------- ---------
Texas Instruments 1.73%
Computer Associates International 1.64
U S WEST Communications 1.59
Wells Fargo 1.52
Microsoft 1.40
Viacom 1.40
Monsanto 1.37
Albertson's 1.34
Household International 1.33
Bristol-Myers Squibb 1.19
Market Market
Number of Value Number of Value
Stocks (common and preferred) Shares (000) Shares (000)
- -------------------------------------------- -------- -------- -------- --------
DATA PROCESSING & REPRODUCTION - 9.68% / 9.13%
Computer Associates International, Inc. 1,925,00 $ 134,63 1,925,000 $ 125,125
Microsoft Corp. (1) 1,175,00 137,18 1,175,000 106,980
Storage Technology Corp. (1) 4,150,00 76,51 4,150,000 81,963
Xerox Corp. 2,950,00 66,92 2,850,000 77,128
3Com Corp. (1) 1,500,00 70,50 1,500,000 59,719
Lexmark International Group, Inc., Class A (1) 575,00 52,03 575,000 47,725
Gateway, Inc. (formerly Gateway 2000, Inc.) (1) 475,70 34,28 550,000 42,006
Cisco Systems, Inc. (1) 400,00 42,85 400,000 35,675
Oracle Corp. (1) 350,00 39,22 400,000 27,125
Compaq Computer Corp. 900,00 24,35 900,000 21,994
International Business Machines Corp. 210,00 22,68 210,000 21,643
Autodesk, Inc. 700,00 23,62 700,000 20,519
Silicon Graphics, Inc. (1) 1,724,30 16,92 1,724,300 16,273
Hewlett-Packard Co. 150,00 17,09 150,000 14,231
HEALTH & PERSONAL CARE - 6.88% / 7.67%
Bristol-Myers Squibb Co. 1,243,30 79,80 1,243,300 90,839
Guidant Corp. (1) 1,500,00 70,50 1,392,200 69,610
Kimberly-Clark Corp. 1,040,00 67,86 1,040,000 66,430
Avon Products, Inc. 1,700,00 56,10 1,700,000 61,944
AstraZeneca PLC (ADR) (United Kingdom) 1,156,75 48,29 1,311,700 58,371
Warner-Lambert Co. 650,00 53,25 650,000 58,297
Merck & Co., Inc. 500,00 33,53 500,000 39,250
Glaxo Wellcome PLC (ADR) (United Kingdom) 600,00 33,52 600,000 35,662
Schering-Plough Corp. 530,00 22,35 530,000 27,096
Cardinal Health, Inc. 500,00 23,93 500,000 26,156
Eli Lilly and Co. 225,00 14,96 225,000 16,144
Bergen Brunswig Corp., Class A 1,800,00 14,96 1,800,000 14,850
Pfizer Inc 400,00 12,97 400,000 14,475
McKesson Corp. 300,00 6,76 300,000 7,012
ENERGY SOURCES - 5.50% / 6.10%
Ultramar Diamond Shamrock Corp. 2,260,10 51,27 2,279,100 57,690
Conoco Inc., Class A 1,674,00 41,43 1,674,000 44,047
Conoco Inc., Class B 491,36 12,22 491,369 12,868
Texaco Inc. 800,00 43,45 800,000 48,750
Phillips Petroleum Co. 950,00 44,65 950,000 45,422
Kerr-McGee Corp. 675,00 41,85 725,000 41,506
Petro-Canada (Canada) 2,800,00 39,59 2,800,000 39,137
Valero Energy Corp. 1,700,00 33,78 1,700,000 35,275
Atlantic Richfield Co. 275,00 23,78 325,000 31,322
Noble Affiliates, Inc. 980,00 21,00 980,000 21,560
USX-Marathon Group 750,00 18,51 750,000 19,828
Sunoco, Inc. 750,00 17,62 750,000 19,172
Murphy Oil Corp. 300,00 17,21 300,000 16,950
Chevron Corp. 185,00 16,02 185,000 16,384
Ashland Inc. 250,00 8,23 250,000 8,437
BP Amoco PLC (ADR) (United Kingdom) 132,332 8,064
BANKING - 5.45% / 6.04%
Wells Fargo & Co. 2,397,00 96,92 2,497,000 116,111
Bank of America Corp. 1,100,00 55,20 1,100,000 64,350
BANK ONE CORP. 1,333,01 42,74 1,083,012 38,176
First Union Corp. 1,472,80 48,32 972,800 37,635
Bank of New York Co., Inc. 800,00 32,00 800,000 31,900
Chase Manhattan Corp. 400,00 31,07 400,000 30,900
KeyCorp 800,00 17,70 800,000 21,600
Citigroup Inc. 381,90 21,21 381,900 20,575
J.P. Morgan & Co. Inc. 150,00 18,99 150,000 19,725
SunTrust Banks, Inc. 280,00 19,26 280,000 19,565
Sakura Bank, Ltd. (ADR) (Japan) 200,00 11,35 200,000 14,838
Huntington Bancshares Inc. 505,64 12,07 505,646 14,000
Fleet Boston Corp. 350,00 12,18 350,000 13,234
Washington Mutual, Inc. (formerly Washington - - 358,700 10,402
Mutual Savings Bank)
Bank of Tokyo-Mitsubishi, Ltd. (ADR) (Japan) 600,00 8,36 600,000 8,850
BROADCASTING & PUBLISHING - 6.05% / 5.71%
Viacom Inc., Class B (1) 2,075,00 125,40 2,150,000 106,962
News Corp. Ltd. (ADR) (Australia) 1,100,00 42,07 1,100,000 37,675
News Corp. Ltd., preferred (ADR) 900,00 30,09 900,000 27,844
MediaOne Group, Inc. (1) 615,00 47,24 615,000 48,739
Harte-Hanks Communications, Inc. 2,066,10 44,93 1,832,400 37,908
AT&T Corp. Liberty Media Group, Class A (1) 500,00 28,37 900,000 37,631
Media General, Inc., Class A 755,10 39,26 636,100 32,441
Time Warner Inc. 505,40 36,61 507,000 31,276
Gannett Co., Inc. 350,00 28,54 385,400 27,580
Knight-Ridder, Inc. 400,00 23,80 400,000 21,825
Fox Entertainment Group, Inc., Class A (1) 700,00 17,45 700,000 16,100
E.W. Scripps Co., Class A 226,00 10,12 226,000 10,509
DIVERSIFIED TELECOMMUNICATION SERVICES
- 4.64% / 4.89%
U S WEST Communications, Inc. 1,960,00 141,12 1,960,000 121,642
Citizens Utilities Co., Series B (1) 6,300,00 89,38 6,300,000 77,962
GTE Corp. 700,00 49,39 755,000 55,115
SBC Communications Inc. 726,40 35,41 726,400 37,727
AT&T Corp. 600,00 30,45 600,000 33,525
MCI WorldCom, Inc. (1) - - 350,000 28,941
Focal Communications Corp. (1) 430,00 10,37 430,000 10,159
Qwest Communications International Inc. (1) 170,00 7,31 170,000 5,812
Time Warner Telecom Inc., Class A (1) - - 110,100 3,200
CHEMICALS - 3.96% / 4.32%
Monsanto Co. 2,177,90 77,58 2,475,000 104,414
Mallinckrodt Inc. 1,800,00 57,26 1,800,000 59,850
Millennium Chemicals Inc. 2,741,60 54,14 2,741,600 53,632
International Flavors & Fragrances Inc. 1,100,00 41,52 1,100,000 40,494
Praxair, Inc. 600,00 30,18 600,000 26,775
PPG Industries, Inc. 450,00 28,15 450,000 26,353
E.I. du Pont de Nemours and Co. 130,00 8,56 130,000 7,727
Air Products and Chemicals, Inc. 200,00 6,71 200,000 6,475
CK Witco Corp. (formerly Witco Corp.) 462,10 6,18 462,100 4,939
MERCHANDISING - 4.40% / 3.95%
Albertson's, Inc. 3,714,50 119,79 3,213,950 102,645
J.C. Penney Co., Inc. 1,650,00 32,89 1,650,000 36,816
AutoZone, Inc. (1) 1,300,00 42,00 1,300,000 35,831
Limited Inc. 750,00 32,48 750,000 31,828
Lowe's Companies, Inc. 847,40 50,63 550,000 27,397
Federated Department Stores, Inc. (1) 500,00 25,28 500,000 23,531
Too, Inc. (1) 910,00 15,69 910,000 16,835
Circuit City Stores, Inc. - Circuit City Group 300,00 13,51 300,000 14,550
Gap, Inc. 125,00 5,75 125,000 5,063
Dollar General Corp. 173,90 3,95 173,900 4,261
Circuit City Stores, Inc. - CarMax Group (1) 1,300,00 3,00 1,300,000 3,087
ELECTRONIC COMPONENTS - 3.49% / 3.58%
Texas Instruments Inc. 1,375,00 133,20 1,375,000 132,086
Corning Inc. 500,00 64,46 679,500 63,661
Intel Corp. 400,00 32,92 530,000 40,644
SCI Systems, Inc. (1) 413,30 33,96 413,300 28,053
Quantum Corp. - DLT & Storage Systems 600,00 9,07 600,000 9,450
(formerly Quantum Corp.) (1)
BUSINESS SERVICES - 3.57% / 3.55%
Allied Waste Industries, Inc. (1) 9,425,00 83,05 8,456,400 68,708
Cendant Corp. (1) 2,050,00 54,45 2,579,899 42,730
IKON Office Solutions, Inc. 4,050,00 27,59 4,050,000 27,084
Pitney Bowes Inc. 632,20 30,54 535,800 25,685
Waste Management, Inc. 1,490,00 25,60 1,490,000 24,212
Alexander & Baldwin, Inc. 1,020,00 23,26 1,020,000 23,205
ServiceMaster Co. 1,600,00 19,70 1,553,300 19,902
Equifax Inc. 500,00 11,78 500,000 12,375
Young & Rubicam Inc. - - 225,000 11,742
Hertz Corp., Class A - - 205,400 8,691
Manpower Inc. 100,00 3,76 200,000 7,288
FOREST PRODUCTS & PAPER - 2.96% / 2.88%
Bowater Inc. 1,395,00 75,76 1,395,000 68,355
Fort James Corp. 1,669,49 45,70 1,669,499 47,998
Weyerhaeuser Co. 600,00 43,08 650,000 39,813
International Paper Co. 700,00 39,50 700,000 36,531
Sonoco Products Co. 800,00 18,20 800,000 18,400
Westvaco Corp. 187,50 6,11 187,500 5,660
Georgia-Pacific Corp., Timber Group 150,00 3,69 150,000 3,722
FINANCIAL SERVICES - 2.30% / 2.40%
Household International, Inc. 2,563,32 95,48 2,563,320 101,411
Capital One Financial Corp. 630,00 30,35 630,000 29,334
Providian Financial Corp. 250,00 22,76 250,000 19,781
MBNA Corp. 470,00 12,80 470,000 11,868
FINOVA Group Inc. 310,00 11,00 310,000 11,528
Associates First Capital Corp., Class A 277,46 7,61 277,464 9,226
UTILITIES: ELECTRIC & GAS - 2.19% / 2.26%
Ameren Corp. 1,145,40 37,51 1,145,400 39,659
DPL Inc. 1,600,00 27,70 1,600,000 28,600
GPU, Inc. 850,00 25,44 850,000 27,200
TECO Energy, Inc. 1,300,00 24,13 1,300,000 26,000
Consolidated Natural Gas Co. 350,00 22,72 350,000 22,444
Duke Energy Corp. 500,00 25,06 405,700 20,564
American Electric Power Co., Inc. 275,00 8,83 275,000 8,628
FOOD & HOUSEHOLD PRODUCTS - 2.06% / 2.21%
Sara Lee Corp. 3,100,00 68,39 3,100,000 75,175
Campbell Soup Co. 800,00 30,95 800,000 35,700
General Mills, Inc. 820,00 29,31 820,000 30,904
Colgate-Palmolive Co. 500,00 32,50 500,000 27,437
MACHINERY & ENGINEERING - 2.20% / 2.12%
Millipore Corp. 1,354,20 52,30 1,354,200 44,434
Deere & Co. 850,00 36,86 850,000 36,497
Ingersoll-Rand Co. 525,00 28,90 525,000 25,430
New Holland NV (Netherlands) 1,700,00 22,63 1,700,000 23,269
Pall Corp. 700,00 15,09 700,000 16,406
Caterpillar Inc. 350,00 16,47 350,000 16,231
INSURANCE - 1.99% / 1.85%
Allstate Corp. 1,800,00 43,20 1,800,000 47,137
MGIC Investment Corp. 400,00 24,07 422,400 23,866
American General Corp. 320,00 24,28 320,000 23,460
Aetna Inc. 406,40 22,68 406,400 22,200
Royal & Sun Alliance Insurance Group PLC 2,500,00 18,07 2,500,000 15,503
(United Kingdom)
Hartford Financial Services Group, Inc. 500,00 23,68 202,300 9,445
ELECTRONIC INSTRUMENTS - 2.05% / 1.82%
Applied Materials, Inc. (1) 600,00 76,01 800,000 77,950
PE Corp.-PE Biosystems Group 600,00 72,18 600,000 48,975
L-3 Communications Corp. (1) 300,00 12,48 300,000 12,375
BEVERAGES & TOBACCO - 1.63% / 1.81%
Philip Morris Companies Inc. 1,590,00 36,86 1,590,000 41,837
Nabisco Group Holdings Corp. (formerly RJR 2,950,00 31,34 2,950,000 34,109
Nabisco Holdings Corp.)
PepsiCo, Inc. 820,00 28,90 820,000 28,341
UST Inc. 700,00 17,63 700,000 18,638
R.J. Reynolds Tobacco Holdings, Inc. 733,33 12,92 733,333 15,629
ELECTRICAL & ELECTRONICS - 1.59% / 1.36%
York International Corp. 1,902,90 52,21 1,902,900 42,459
Nokia Corp., Class A (ADR) (Finland) 170,00 32,30 210,000 29,019
Hitachi, Ltd. (Japan) 1,120,00 17,97 1,120,000 15,546
Harris Corp. 500,00 13,34 500,000 10,500
Telefonaktiebolaget LM Ericsson, Class B (ADR) 100,00 6,56 100,000 4,819
(Sweden)
Lanier Worldwide, Inc. (1) 500,00 1,93 500,000 2,000
TRANSPORTATION: RAIL & ROAD - 1.14% / 1.26%
Canadian National Railway Co. (Canada) 1,400,00 36,83 1,400,000 41,913
Burlington Northern Santa Fe Corp. 1,025,00 24,85 925,000 26,825
Norfolk Southern Corp. 841,00 17,24 740,000 15,818
Union Pacific Corp. 150,00 6,54 150,000 7,059
CSX Corp. 125,00 3,92 125,000 4,445
MULTI-INDUSTRY - 1.12% / 1.02%
FMC Corp. (1) 550,00 31,52 550,000 26,675
Honeywell International Inc. (formerly 500,00 28,84 400,000 23,925
AlliedSignal Inc.)
Textron Inc. 200,00 15,33 200,000 14,213
Loews Corp. 200,00 12,13 200,000 12,800
TEXTILES & APPAREL - 1.13% / 0.97%
NIKE, Inc., Class B 1,394,10 69,09 1,190,000 54,740
VF Corp. 650,00 19,50 650,000 19,419
INDUSTRIAL COMPONENTS - 0.86% / 0.93%
Eaton Corp. 440,00 31,95 440,000 34,073
Federal-Mogul Corp. 856,60 17,23 856,600 19,113
Dana Corp. 231,80 6,94 231,800 6,432
Tower Automotive, Inc. (1) 400,00 6,17 400,000 6,000
Genuine Parts Co. - - 200,000 5,150
Illinois Tool Works Inc. 75,00 5,06 - -
AEROSPACE & MILITARY TECHNOLOGY
- 0.94% / 0.91%
United Technologies Corp. 623,20 40,50 623,200 35,211
Boeing Co. 550,00 22,85 550,000 22,447
Raytheon Co., Class B 250,00 6,64 250,000 7,672
Raytheon Co., Class A 151,84 3,76 151,848 4,422
ENERGY EQUIPMENT - 0.73% / 0.81%
Schlumberger Ltd. (Netherlands Antilles) 900,00 50,62 900,000 54,056
Baker Hughes Inc. 300,00 6,31 300,000 7,575
LEISURE & TOURISM - 0.75% / 0.74%
Seagram Co. Ltd. (Canada) 1,300,00 58,41 1,300,000 56,631
RECREATION & OTHER CONSUMER PRODUCTS
- 0.59% / 0.63%
Pennzoil-Quaker State Co. 3,554,60 36,21 3,554,600 36,879
Mattel, Inc. 750,00 9,84 750,000 10,734
Water Pik Technologies, Inc. (1) - - 60,000 443
REAL ESTATE - 0.66% / 0.59%
Equity Residential Properties Trust 600,00 25,61 600,000 24,113
Boston Properties, Inc. 850,00 26,45 750,000 21,234
HEALTH CARE PROVIDERS & SERVICES
- 0.66% / 0.55%
United HealthCare Corp. 450,00 23,90 450,000 23,372
Service Corp. International 4,000,00 27,75 2,500,000 18,906
METALS: NONFERROUS - 0.53% / 0.43%
Alcoa Inc. 500,00 41,50 500,000 32,750
MISCELLANEOUS MATERIALS & COMMODITIES
- 0.42% / 0.41%
Owens-Illinois, Inc. (1) 700,00 17,54 700,000 16,756
Crown Cork & Seal Co., Inc. 700,00 15,66 700,000 14,263
IT CONSULTING & SERVICES - 0.17% / 0.34%
Electronic Data Systems Corp. 200,00 13,38 400,000 25,725
WIRELESS TELECOMMUNICATION SERVICES
- 0.28% / 0.25%
Western Wireless Corp., Class A (1) 325,00 21,69 325,000 19,033
METALS: STEEL - 0.17% / 0.20%
Allegheny Technologies, Inc. (formerly 600,00 13,46 600,000 15,113
Allegheny Teledyne Inc.)
TRANSPORTATION: AIRLINES - 0.21% / 0.00%
Southwest Airlines Co. 1,000,00 16,18 - -
MISCELLANEOUS - 4.32% / 3.58%
Other stocks in initial period of acquisition 338,310 273,567
---------- ----------
TOTAL STOCKS (cost: 5,727,660,000 and 6,837,414 6,672,622
$5,677,953,000, respectively)
---------- ----------
Principal Market Principal Market
Convertible Debentures Amount Value Amount Value
- -------------------------------------------- (000) (000) (000) (000)
-------- -------- -------- --------
DIVERSIFIED TELECOMMUNICATION SERVICES
- 0.18% / 0.16%
Telefonos de Mexico, SA de CV 4.25% 2004 (Mexico) $ 11,06 14,43 $ 11,06 12,622
---------- ----------
TOTAL CONVERTIBLE DEBENTURES (cost: 14,433 12,622
$10,728,000 and $10,722,000, respectively)
---------- ----------
TOTAL EQUITY SECURITIES (cost: 6,851,847 6,685,244
$5,738,388,000 and $5,688,675,000, respectively)
---------- ----------
Short-Term Securities
- --------------------------------------------
Corporate Short-Term Notes - 11.69% / 11.08%
American Express Credit Corp. 5.73%-5.90% 55,00 54,67 55,000 54,381
due 2/1-2/11/2000
Bell Atlantic Network Funding Corp. 5.25%-5.82% 25,00 24,91 50,000 49,712
due 12/22/1999-1/20/2000
Procter & Gamble Co. 5.65%-5.90% due 1/27-2/2/2000 50,00 49,76 50,000 49,517
American General Finance Corp. 5.74%-5.84% 50,00 49,67 50,000 49,426
due 1/25-2/23/2000
BellSouth Capital Funding Corp. 5.67%-5.93% 67,80 67,42 49,700 49,212
due 1/20-2/15/2000 (2)
Ford Motor Credit Co. 5.64%-5.93% due 1/11-2/10/2000 46,00 45,83 46,000 45,609
Emerson Electric Co. 5.30%-5.31% due 1/24-1/26/2000 45,00 44,81 45,000 44,594
National Rural Utilities Cooperative Finance Corp. 35,60 35,24 44,100 43,867
5.30%-5.94% due 12/6/1999-3/29/2000
E.W. Scripps Co. 5.80%-6.00% due 1/21-2/14/2000 (2) 42,00 41,73 42,000 41,529
Ciesco LP 5.30%-5.95% due 12/10/1999-2/8/2000 18,20 18,08 40,000 39,788
Eastman Kodak Co. 5.30%-5.49% due 12/3/1999 - - 36,965 36,948
USAA Capital Corp. 5.72%-5.92% due 1/19-2/9/2000 35,00 34,84 35,000 34,664
E.I. du Pont de Nemours and Co. 5.55% due 2/3/2000 35,00 34,80 35,000 34,633
Merck & Co. Inc. 5.30%-6.15% due 2/1-2/4/2000 40,00 39,77 35,000 34,627
General Electric Capital Corp. 5.84% due 1/18/2000 34,00 33,90 34,000 33,728
General Motors Acceptance Corp. 5.29%-6.02% 53,05 52,66 30,800 30,507
due 12/22/1999-2/17/2000
SBC Communications Inc. 5.26%-5.82% due 14,25 14,17 30,588 30,434
12/3/1999-2/18/2000 (2)
Gannett Co. 5.85%-5.90% due 1/14-1/21/2000 (2) 29,60 29,51 29,600 29,368
International Lease Finance Corp. 5.76%-5.83% 28,00 27,84 28,000 27,701
due 2/1-2/9/2000
Associates First Capital Corp. 5.72% due 2/24/2000 25,00 24,77 25,000 24,649
Equilon Enterprises, LLC 5.92%-5.94% due 1/28/2000 21,70 21,60 21,700 21,492
H.J. Heinz Co. 5.28% due 12/1/1999 - - 19,700 19,697
Pfizer Inc 5.64% due 3/17/2000 (2) 14,50 14,32 14,500 14,249
Kellogg Co. 5.62% due 1/28/2000 7,00 6,96 7,000 6,933
Fortune Brands 5.85% due 1/27-1/28/2000 (2) 30,00 29,86 - -
Corporate Asset Funding Co. Inc. 6.00%-6.02% 26,70 26,56 - -
due 1/26-2/2/2000 (2)
Coca-Cola Co. 5.95% due 2/16/2000 26,50 26,29 - -
Duke Energy Corp. 6.08% due 2/22/2000 25,00 24,78 - -
Household Finance Corp. 5.94% due 1/31/2000 23,60 23,47 - -
CIT Group Holdings, Inc. 4.75% due 1/3/2000 9,70 9,69 - -
Avon Capital Corp. 6.70% due 1/6/2000 (2) 6,20 6,19 - -
Gillette Co. 5.85% due 1/10/2000 (2) 2,00 1,99 - -
Federal Agency Discount Notes - 0.78% / 1.63%
Freddie Mac 5.16%-5.75% due 12/17/1999-3/3/2000 33,00 32,73 65,503 65,000
Fannie Mae 5.26%-5.67% due 12/17/1999-2/24/2000 28,20 27,99 38,500 38,273
Federal Home Loan Banks 5.25% due 12/15/1999 - - 21,000 20,954
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: 976,958 971,492
$977,046,000 and $971,656,000, respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 7,828,805 7,656,736
$6,715,434,000 and $6,660,331,000, respectively)
Net cash, receivables and payables 5,999 (10,597)
---------- ----------
NET ASSETS $ 7,834,804 $7,646,139
============ ===========
(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
</TABLE>
<TABLE>
American Variable Insurance Series Asset Allocation Fund
Investments in both stocks and bonds
Investment Portfolio, December 31 & November 30, 1999
<S> <C> <C> <C> <C>
December 31 November 30
Percent of Percent of
Net Assets Net Assets
Equity Securities 62.63 61.48
U.S. Government Bonds 15.54 15.87
Corporate Bonds 14.17 14.29
Non-U.S. Government Bonds 0.15 0.15
Cash & Equivalents 7.51 8.21
LARGEST INDIVIDUAL EQUITY SECURITIES
Computer Associates International 2.63 2.46
CenturyTel 2.21 2.16
Citigroup 2.17 2.12
Bank of America 1.67 1.97
Carnival 1.94 1.80
Household International 1.62 1.73
AstraZeneca - 1.71
Pitney Bowes 1.68 1.68
United Technologies 1.85 1.62
Nokia 2.20 1.61
Corning 1.87 -
December 31 November 30
Market Market
Number of Value Number of Value
Shares (000) Shares (000)
Stocks (common and preferred) -------- -------- -------- --------
- --------------------------------------------
DATA PROCESSING & REPRODUCTION - 7.21% / 6.46%
Computer Associates International, Inc. 650,000 45,459 650,000 42,250
International Business Machines Corp. 150,000 16,200 150,000 15,459
Gateway, Inc. (1) 200,000 14,413 200,000 15,275
Hewlett-Packard Co. 150,000 17,091 150,000 14,231
Storage Technology Corp. (1) 600,000 11,063 600,000 11,850
Autodesk, Inc. 400,000 13,500 400,000 11,725
Xerox Corp. 300,000 6,806 - -
ENERGY SOURCES - 6.21% / 6.29%
Royal Dutch Petroleum Co., New York registered 360,000 21,758 360,000 20,880
(Netherlands)
Atlantic Richfield Co. 200,000 17,300 200,000 19,275
Chevron Corp. 150,000 12,994 150,000 13,284
Kerr-McGee Corp. 150,000 9,300 200,000 11,450
Ultramar Diamond Shamrock Corp. 400,000 9,075 400,000 10,125
Phillips Petroleum Co. 200,000 9,400 200,000 9,562
Texaco Inc. 250,000 13,578 150,000 9,141
Murphy Oil Corp. 135,000 7,746 135,000 7,627
Conoco Inc., Class B 245,684 6,111 245,684 6,434
BANKING - 6.76% / 5.88%
Citigroup Inc. 675,000 37,505 675,000 36,366
Bank of America Corp. 576,320 28,924 576,320 33,715
Washington Mutual Savings Bank 400,000 10,400 400,000 11,600
KeyCorp 250,000 5,531 250,000 6,750
Tokai Preferred Capital Co. LLC, Series A, 3,000 2,989 3,000 3,047
9.98% noncumulative preferred (Japan) (2)
Fuji JGB Investment LLC, Series A, 9.87% 2,500 2,500 2,500 2,522
noncumulative preferred (Japan) (2)
BNP U.S. Funding LLC, Series A, 7.738% 2,500 2,327 2,500 2,327
noncumulative preferred (2)
First Republic Capital Corp., Series A, 10.50% 2,250 2,059 2,250 2,166
preferred (2)
NB Capital Corp. 8.35% exchangeable depositary 60,000 1,290 60,000 1,391
IBJ Preferred Capital Co. LLC, Series A, 1,000 945 1,000 955
8.79% noncumulative preferred (2)
BANK ONE CORP. 700,000 22,444 - -
HEALTH & PERSONAL CARE - 5.32% / 5.69%
AstraZeneca PLC (ADR) (United Kingdom) 660,000 27,555 660,000 29,370
SmithKline Beecham PLC (ADR) (United Kingdom) 300,000 19,331 300,000 19,950
Warner-Lambert Co. 200,000 16,388 200,000 17,938
Pfizer Inc 300,000 9,731 300,000 10,856
Eli Lilly and Co. 150,000 9,975 150,000 10,762
Gillette Co. 216,960 8,936 216,960 8,719
MERCHANDISING - 4.31% / 3.83%
Albertson's, Inc. 820,000 26,445 500,000 15,969
J.C. Penney Co., Inc. 628,000 12,521 628,000 14,012
Limited Inc. 318,273 13,785 318,273 13,507
May Department Stores Co. 400,000 12,900 400,000 13,450
Walgreen Co. 300,000 8,775 300,000 8,738
DIVERSIFIED TELECOMMUNICATION SERVICES
- 3.91% / 3.83%
CenturyTel, Inc. 804,375 38,107 804,375 37,001
Sprint FON Group 350,000 23,559 350,000 24,281
COLT Telecom Group PLC (ADR) (United Kingdom) (1) 29,250 5,967 29,250 4,362
AEROSPACE & MILITARY TECHNOLOGY - 3.00% / 3.02%
United Technologies Corp. 491,800 31,967 491,800 27,787
Raytheon Co., Class B 420,000 11,156 420,000 12,889
Raytheon Co., Class A 100,000 2,481 100,000 2,912
Boeing Co. 150,000 6,234 200,000 8,162
BUSINESS SERVICES - 2.78% / 2.84%
Pitney Bowes Inc. 600,000 28,988 600,000 28,763
Rentokil Initial PLC (ADR) (United Kingdom) 500,000 18,000 500,000 18,906
EarthWatch Inc., Series B, 7.00% convertible 289,991 1,000 289,991 1,000
preferred (1)(2)(3)(4)(5)
ELECTRICAL & ELECTRONICS - 3.41% / 2.70%
Nokia Corp., Class A (ADR) (Finland) 200,000 38,000 200,000 27,637
York International Corp. 450,000 12,347 450,000 10,041
Emerson Electric Co. 150,000 8,606 150,000 8,550
INSURANCE - 2.61% / 2.53%
American General Corp. 176,700 13,407 176,700 12,954
CIGNA Corp. 150,000 12,084 150,000 12,338
Allstate Corp. 400,000 9,600 350,000 9,166
Aon Corp. 250,000 10,000 250,000 8,922
CHEMICALS - 2.16% / 2.27%
Monsanto Co. 365,600 13,025 365,600 15,424
Millennium Chemicals Inc. 600,000 11,850 600,000 11,738
PPG Industries, Inc. 200,000 12,512 200,000 11,712
LEISURE & TOURISM - 1.94% / 1.80%
Carnival Corp. 700,000 33,469 700,000 30,888
Discovery Zone, Inc. (1)(5) 2,940 2,940 1
Discovery Zone, Inc., warrants, expire 2007 (1)(4)(5) 326 326 -
FINANCIAL SERVICES - 1.62% / 1.73%
Household International, Inc. 750,000 27,938 750,000 29,672
BEVERAGES & TOBACCO - 1.64% / 1.67%
PepsiCo, Inc. 520,000 18,330 520,000 17,972
UST Corp. 400,000 10,075 400,000 10,650
ELECTRONIC COMPONENTS - 1.86% / 1.36%
Corning Inc. 250,000 32,234 250,000 23,422
MACHINERY & ENGINEERING - 1.30% / 1.29%
Millipore Corp. 300,000 11,588 350,000 11,484
Deere & Co. 250,000 10,844 250,000 10,734
INDUSTRIAL COMPONENTS - 1.12% / 1.10%
Dana Corp. 400,000 11,975 400,000 11,100
Genuine Parts Co. 300,000 7,444 300,000 7,725
BROADCASTING & PUBLISHING - 0.98% / 0.92%
New York Times Co., Class A 300,000 14,737 350,000 13,453
Adelphia Communications Corp., Series B, 20,000 2,200 20,000 2,255
13.00% exchangeable preferred 2009 (1)
FOREST PRODUCTS & PAPER - 0.82% / 0.74%
Weyerhaeuser Co. 150,000 10,772 150,000 9,188
Sonoco Products Co. 150,000 3,413 150,000 3,450
ENERGY EQUIPMENT - 0.65% / 0.70%
Schlumberger Ltd. (Netherlands Antilles) 200,000 11,250 200,000 12,013
FOOD & HOUSEHOLD PRODUCTS - 0.62% / 0.66%
General Mills, Inc. 300,000 10,725 300,000 11,306
MULTI-INDUSTRY - 0.51% / 0.62%
Dover Corp. 150,000 6,806 200,000 8,675
Swire Pacific Capital Ltd. 8.84% cumulative 100,000 2,025 100,000 1,950
guaranteed perpetual capital securities
(Hong Kong) (2)
WIRELESS TELECOMMUNICATION SERVICES - 0.66% / 0.60%
Omnipoint Corp. 7.00% convertible preferred (2) 40,000 6,680 40,000 5,800
Crown Castle International Corp. 12.75% 2,267 2,347 2,197 2,286
exchangeable preferred 2010 (1)(2)(3)
Nextel Communications, Inc., Series D, 13.00% 1,657 1,756 1,657 1,756
exchangeable preferred 2009 (1)(3)
McCaw International, Ltd. (owned by Nextel 2,000 5 2,000 5
Communications, Inc.), warrants, expire 2007
(1)(2)(4)
Esat Telecom Group PLC, warrants, expire 2007 3,500 642 3,500 458
(Ireland) (1)(2)(4)(5)
Conecel Holdings Ltd., Class B, warrants, 77,700 8 77,700 8
expire 2000 (Ecuador) (1)(2)(4)(5)
Iridium LLC, warrants, expire 2005 (1)(2)(4)(5) 1,500 1,500 -
UTILITIES: ELECTRIC & GAS - 0.35% / 0.35%
Central and South West Corp. 300,000 6,000 300,000 6,000
METALS: STEEL - 0.00% / 0.19%
Allegheny Telchnologies, Inc. (formerly Allegheny - 128,200 3,229
Teledyne Inc.)
REAL ESTATE - 0.05% / 0.04%
CarrAmerica Realty Corp., Series B, 8.57% 50,000 806 50,000 784
redeemable preferred
RECREATION & OTHER CONSUMER PRODUCTS
- 0.00% / 0.00%
V2 Music Holdings, warrants, expire 2008 1,250 1,250 -
(United Kingdom) (1)(2)(5)
MISCELLANEOUS - 0.08% / 1.53%
Other stocks in initial period of acquisition 1,307 26,161
---------- ----------
TOTAL STOCKS (cost: $782,800,000 and 1,069,316 1,039,648
$777,392,000, respectively)
---------- ----------
Principal Market Principal Market
Amount Value Amount Value
(000) (000) (000)
Convertible Debentures -------- -------- -------- --------
- --------------------------------------------
INDUSTRIALS & SERVICES - 0.75% / 0.84%
Bell Atlantic Financial Services, Inc. 4.25% $2,150 2,645 $4,000 4,350
senior exchangeable notes 2005 (2)
Bell Atlantic Financial Services, Inc. 5.75% 2003 (2) 3,500 3,535 3,500 3,474
Sunglass Hut International, Inc. 5.25% 2003 3,375 2,717 3,375 2,717
USA Waste Services, Inc. 4.00% 2002 2,000 1,700 2,000 1,670
Advanced Micro Devices, Inc. 6.00% convertible 1,500 1,530 1,500 1,417
subordinated notes 2005
Ingram Micro Inc. 0% 2018 (2) 2,700 877 2,700 867
---------- ----------
TOTAL CONVERTIBLE DEBENTURES (cost: 13,004 14,495
$12,481,000 and $14,260,000, respectively)
---------- ----------
TOTAL EQUITY SECURITIES (cost: 1,082,320 1,054,143
$795,281,000 and $791,652,000, respectively)
---------- ----------
Principal Market Market
Amount Value Principal Value
Bonds & Notes (000) (000) Amount (000)
- -------------------------------------------- -------- -------- -------- --------
BANKING & THRIFTS - 1.81% / 1.84%
National Westminster Bank PLC:
7.75% 2049 3,200 3,075 3,200 3,120
7.375% 2009 2,500 2,443 2,500 2,488
9.45% 2001 1,000 1,031 1,000 1,035
BANK ONE CORP.:
5.625% 2004 2,500 2,345 2,500 2,364
6.00% 2009 2,000 1,779 2,000 1,812
Imperial Capital Trust I, Series B, 9.98% 2026 2,950 2,621 2,950 2,692
MBNA Corp.:
Capital A, Series A, 8.278% 2026 2,010 1,749 2,010 1,783
Capital B, Series B, 7.005% 2027 (6) 1,000 824 1,000 810
Chase Capital II, Series B, 6.705% 2027 (6) 2,500 2,363 2,500 2,364
Bankers Trust Corp. 6.70% 2007 2,080 1,956 2,080 1,986
Advanta Capital Trust I 8.99% 2026 3,000 2,070 3,000 1,980
Banque Nationale de Paris 6.765%/6.138% 2049 (6) 2,000 1,937 2,000 1,934
Chevy Chase Bank, FSB 9.25% 2008 2,000 1,880 2,000 1,920
Fleet Capital Trust 7.14%/6.513% 2028 (6) 1,500 1,482 1,500 1,481
Chase Capital III, Series C, 6.66%/6.053% 2027 (6) 1,500 1,410 1,500 1,410
Komercni Banka AS 9.00%/10.75% 2008 (2)(7) 1,000 933 1,000 935
Abbey National PLC 6.70% 2049 1,000 902 1,000 913
J.P. Morgan & Co. Inc., Series A, 6.00% 2009 510 456 510 465
FINANCIAL SERVICES - 1.66% / 1.73%
Capital One Bank:
7.35% 2000 5,000 5,005 5,000 5,008
6.375% 2003 2,500 2,398 2,500 2,412
Ford Motor Credit Co. 5.80% 2009 3,500 3,102 3,500 3,147
Capital One Financial Corp. 7.125% 2008 3,200 2,919 3,200 2,966
GS Escrow Corp. 7.125% 2005 3,000 2,696 3,000 2,726
BHP Finance Ltd. 6.75% 2013 2,680 2,392 2,680 2,441
Providian National Bank 6.65% 2004 2,500 2,360 2,500 2,388
MBNA America Bank, NA 6.75% 2008 2,500 2,302 2,500 2,324
Household Finance Corp. 6.40% 2008 1,500 1,387 2,250 2,113
Wharf International Finance Ltd. 7.625% 2007 1,750 1,624 1,750 1,582
AT&T Capital Corp. 6.875% 2001 1,500 1,500 1,500 1,503
Capital One Capital I 7.755% 2027 (2)(6) 1,250 1,079 1,250 1,080
DIVERSIFIED MEDIA & CABLE TELEVISION - 1.47% / 1.64%
Time Warner Inc. 9.125% 2013 5,500 6,023 5,500 6,162
NTL Inc.:
0%/11.50% 2009 (2)(7) 4,500 2,626 4,500 2,651
11.50% 2008 1,000 1,080 1,000 1,085
Fox/Liberty Networks, LLC 0%/9.75% 2007 (7) 4,000 3,200 4,000 3,180
Comcast Cable Communications, Inc. 8.875% 2017 - 2,500 2,760
Charter Communications Holdings, LLC 0%/9.92% 2011 (7) 4,000 2,340 4,000 2,420
Telemundo Holdings, Inc. 0%/11.50% 2008 (7) 4,000 2,380 4,000 2,280
TCI Communications, Inc. 8.75% 2015 2,000 2,182 2,000 2,213
Hearst-Argyle Television, Inc. 7.50% 2027 2,000 1,848 2,000 1,836
Liberty Media Corp. 7.875% 2009 (2) 1,500 1,493 1,500 1,499
Cablevision Industries Corp. 8.125% 2009 1,250 1,228 1,250 1,246
Conecel Holdings Ltd.:
Series A, 14.00% 2000 (2)(4)(5) 3,000 300 3,000 300
14.00% 2002 (5) 1,000 305 1,000 242
V2 Music Holdings, units 0%/14.00% 2008 (2)(7) 1,250 337 1,250 337
WIRELESS TELECOMMUNICATION SERVICES - 1.13% / 1.10%
Nextel Communications, Inc.:
0%/9.95% 2008 (7) 4,500 3,161 4,500 3,173
0%/9.75% 2007 (7) 2,000 1,425 2,000 1,435
0%/10.65% 2007 (7) 1,500 1,121 1,500 1,129
McCaw International, Ltd. (owned by Nextel 6,000 4,140 6,000 3,990
Communications, Inc.) 0%/13.00% 2007 (7)
Clearnet Communications Inc.:
0%/11.75% 2007 (7) 5,250 2,587 5,250 2,511
0%/10.40% 2008 (7) 4,000 1,750 4,000 1,690
0%/10.125% 2009 (7) 1,250 759 1,250 766
Esat Telecom Group PLC 0%/12.50% 2007 (7) 3,500 2,975 3,500 2,625
Omnipoint Corp. 11.625% 2006 1,500 1,590 1,500 1,590
TRANSPORTATION: AIRLINES - 1.00% / 1.02%
Continental Airlines, Inc.:
Series 1996-2C, 10.22% 2014 (8) 2,092 2,204 2,092 2,233
Series 1998-3C, 7.25% 2005 1,500 1,436 1,500 1,454
Series 1997-4A, 6.90% 2018 1,469 1,360 1,469 1,371
United Air Lines, Inc.:
Series 1996-A2, 7.87% 2019 2,500 2,263 2,500 2,299
Series 1995-A1, 9.02% 2012 (8) 1,321 1,326 1,321 1,345
9.00% 2003 500 515 500 519
Delta Air Lines, Inc., pass-through trust: (8)
Series 1993-A2, 10.50% 2016 2,000 2,276 2,000 2,302
Series 1992-A2, 9.20% 2014 1,000 1,036 1,000 1,049
Airplanes Pass Through Trust, Class 1-C, 8.15% 2019 (8) 2,851 2,651 2,932 2,756
Jet Equipment Trust, Series 1995-B, 7.83% 2015 (2)(8) 2,251 2,196 2,251 2,203
ENERGY & RELATED COMPANIES - 0.88% / 0.90%
Union Pacific Resources Group, Inc. 7.30% 2009 3,100 2,977 3,100 3,005
USX Corp. 9.125% 2013 2,500 2,716 2,500 2,777
Oryx Energy Co. 8.375% 2004 2,500 2,564 2,500 2,574
Norcen Energy Resources Ltd. 7.375% 2006 2,000 1,947 2,000 1,961
OXYMAR 7.50% 2016 (2) 2,500 1,661 2,500 1,734
Louis Dreyfus Natural Gas Corp. 9.25% 2004 1,500 1,522 1,500 1,524
Cross Timbers Oil Co. 8.75% 2009 1,000 945 1,000 965
Conoco Inc. 6.35% 2009 1,000 927 1,000 944
DIVERSIFIED TELECOMMUNICATIONS SERVICES
- 0.75% / 0.74%
Cable & Wireless Communications PLC:
6.625% 2005 3,300 3,259 3,300 3,292
6.75% 2008 2,000 1,970 2,000 2,003
COLT Telecom Group PLC 0%/12.00% 2006 (7) 3,750 3,300 3,750 3,225
Telesystem International Wireless Inc. 3,700 2,368 3,700 2,127
0%/13.25% 2007 (7)
CEI Citicorp Holdings SA 11.25% 2007 (2) 2,500 2,044 2,500 2,044
ASSET-BACKED OBLIGATIONS (8) - 0.63% / 0.64%
Sears Credit Account Master Trust II, 3,250 3,046 3,250 3,072
Series 1998-2, Class A, 5.25% 2008
H.S. Receivables Corp., Series 1999-1, 2,500 2,475 2,500 2,475
Class A, 8.13% 2004 (2)
First Consumer Master Trust, Series 1999-A, 2,250 2,159 2,250 2,156
Class A, 5.80% 2005 (2)
Providian Master Trust, Series 1999-2, 1,750 1,737 1,750 1,748
Class A, 6.60% 2007
FIRSTPLUS Home Loan Owner Trust, 1,500 1,485 1,500 1,488
Series 1997-1, Class A-6, 6.95% 2015
UTILITIES: ELECTRIC & GAS - 0.59% / 0.60%
Israel Electric Corp. Ltd.: (2)
7.25% 2006 2,500 2,364 2,500 2,396
7.70% 2018 1,750 1,554 1,750 1,541
7.75% 2027 1,500 1,296 1,500 1,322
Edison Mission Energy 7.73% 2009 (2) 2,000 1,979 2,000 1,981
Commonwealth Edison Co., Series 75, 9.875% 2020 1,500 1,617 1,500 1,655
Energen Corp., Series B, 7.125% 2028 1,500 1,325 1,500 1,353
MERCHANDISING - 0.56% / 0.57%
J.C. Penney Co., Inc.:
8.25% 2022 3,150 2,800 3,150 2,852
7.60% 2007 2,000 1,859 2,000 1,911
7.95% 2017 2,000 1,778 2,000 1,779
Dayton Hudson Corp. 8.50% 2022 2,500 2,501 2,500 2,524
Venator Group, Inc., Series A, 7.00% 2002 750 683 750 690
FOREST PRODUCTS & PAPER - 0.48% / 0.54%
Fort James Corp. 6.625% 2004 2,500 2,410 2,500 2,429
Container Corp. of America 9.75% 2003 2,000 2,040 2,000 2,040
Scotia Pacific Co. LLC, Class A-2, 7.11% 2028 2,000 1,749 2,000 1,652
Kappa Beheer BV 10.625% 2009 (2) 1,250 1,327 1,250 1,315
Pacifica Papers Inc. 10.00% 2009 - 1,000 1,030
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1,000 727 1,000 708
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED) (8) - 0.52% / 0.53%
DLJ Mortgage Acceptance Corp., Series 3,000 2,973 3,000 3,004
1996-CF2, Class A1, 7.29% 2021 (2)
Morgan Stanley Capital I, Inc., Series 1998-HF2, 3,000 2,821 3,000 2,862
Class A-2, 6.48% 2030
L.A. Arena Funding, LLC 7.66% 2026 (2) 2,000 1,783 2,000 1,802
GMAC Commercial Mortgage Securities, Inc., 1,390 1,384 1,417 1,417
Series 1997-C1, Class A-1, 6.83% 2003
REAL ESTATE - 0.35% / 0.36%
SocGen Real Estate Co. LLC, Series A, 5,700 5,144 5,700 5,216
7.64%/8.40% preferred 2049 (2)(6)
EOP Operating LP 7.25% 2018 1,000 880 1,000 891
FOOD & HOUSEHOLD PRODUCTS - 0.31% / 0.31%
Home Products International, Inc. 9.625% 2008 3,000 2,737 3,000 2,708
Fage Dairy Industry SA 9.00% 2007 2,000 1,760 2,000 1,800
Gruma, SA de CV 7.625% 2007 1,000 870 1,000 878
METALS: NONFERROUS - 0.31% / 0.31%
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 2,750 2,077 2,750 2,080
Inco Ltd. 9.60% 2022 2,000 1,938 2,000 1,943
Doe Run Resources Corp. 12.231% 2003 (6) 1,500 1,380 1,500 1,350
BROADCASTING & PUBLISHING - 0.31% / 0.31%
British Sky Broadcasting Group PLC 8.20% 2009 (2) 2,250 2,176 2,250 2,143
RBS Participacoes SA 11.00% 2007 (2) 2,000 1,695 2,000 1,595
Ziff-Davis Inc. 8.50% 2008 1,500 1,562 1,500 1,470
HEALTH & PERSONAL CARE - 0.28% / 0.29%
Allegiance Corp. 7.00% 2026 3,000 2,914 3,000 2,896
Lilly Del Mar 7.355% 2029 (2)(6) 1,750 1,752 1,750 1,752
Integrated Health Services, Inc., Series A: (5)
9.25% 2008 1,750 144 1,750 158
9.50% 2007 1,250 103 1,250 112
LEISURE & TOURISM - 0.22% / 0.22%
Royal Caribbean Cruises Ltd. 7.00% 2007 3,000 2,823 3,000 2,857
Horseshoe Gaming Holding Corp. 8.625% 2009 (2) 1,000 955 1,000 963
BUSINESS SERVICES - 0.28% / 0.12%
Allied Waste North America, Inc. 10.00% 2009 (2) 1,300 1,160 1,300 1,188
USA Waste Services, Inc. 6.50% 2002 1,000 926 1,000 912
Cendant Corp. 7.75% 2003 2,750 2,743 - -
ELECTRICAL & ELECTRONICS - 0.11% / 0.11%
Hyundai Semiconductor America, Inc. 8.625% 2007 (2) 2,400 1,995 2,400 1,950
MULTI-INDUSTRY - 0.16% / 0.10%
Tyco International Group SA 6.875% 2002 (2) 2,800 2,761 1,800 1,774
MANUFACTURING & MATERIALS - 0.09% / 0.10%
Owens-Illinois, Inc. 8.10% 2007 1,750 1,654 1,750 1,676
INSURANCE - 0.09% / 0.09%
ReliaStar Financial Corp. 8.00% 2006 1,500 1,508 1,500 1,529
CHEMICALS - 0.06% / 0.06%
Equistar Chemicals, LP 8.75% 2009 1,000 988 1,000 992
APPLIANCES & HOUSEHOLD DURABLES - 0.06% / 0.06%
Samsung Electronics Co., Ltd. 7.45% 2002 (2) 1,000 984 1,000 978
INDUSTRIAL COMPONENTS - 0.06% / 0.00%
Cooper Tire & Rubber Co. 7.25% 2002 1,000 989 - -
NON-U.S. GOVERNMENTS & GOVERNMENTAL
AUTHORITIES - 0.15% / 0.15%
Canadian Government 4.60% 2026 (9) 2,000 1,533 2,000 1,496
Mendoza (Province of) 10.00% 2007 (2) 1,300 1,017 1,300 978
FEDERAL AGENCY OBLIGATIONS: MORTGAGE
PASS-THROUGHS (8) - 4.38% / 4.49%
Government National Mortgage Assn.:
7.00% 2022-2029 18,345 17,747 18,531 18,121
8.00% 2020-2029 16,210 16,422 16,290 16,600
7.50% 2029 9,762 9,652 9,854 9,832
6.50% 2029 9,333 8,758 9,343 8,887
8.50% 2021-2029 2,361 2,439 2,364 2,451
10.00% 2019 517 558 528 571
Fannie Mae:
6.50% 2013 8,391 8,140 8,512 8,323
6.00% 2013 8,297 7,872 8,376 8,018
8.50% 2024 2,917 2,993 2,957 3,047
7.00% 2009 902 893 917 914
9.00% 2019 269 280 269 282
U.S. TREASURY OBLIGATIONS - 11.16% / 11.38%
7.25% 2004-2016 50,000 51,963 50,000 52,739
6.50% 2002-2005 50,000 50,151 50,000 50,581
7.00% 2006 25,000 25,606 25,000 25,969
10.375% 2009-2012 16,000 19,319 16,000 19,626
6.625% 2007 15,000 15,059 15,000 15,291
3.739% 2002 (9) 10,000 10,398 10,000 10,400
8.75% 2000-2008 8,000 8,398 8,000 8,460
8.25% 2005 5,000 5,032 5,000 5,046
11.875% 2003 2,500 2,951 2,500 2,981
9.125% 2009 1,500 1,638 1,500 1,655
11.125% 2003 1,000 1,146 1,000 1,159
11.75% 2010 500 608 500 615
10.75% 2003 500 565 500 570
---------- ----------
TOTAL BONDS & NOTES (COST: $545,990,000 515,961 519,633
and $546,490,000, respectively)
---------- ----------
Market Market
Principal Value Principal Value
Short-Term Securities Amount 0 Amount (000)
- -------------------------------------------- -------- -------- -------- --------
CORPORATE SHORT-TERM NOTES - 6.15% / 6.07%
H.J. Heinz Co. 5.30%-6.05% due 12/2/1999-1/12/2000 8,600 8,582 25,300 25,277
Bell Atlantic Network Funding Corp. 5.30%-5.82% 5,500 5,490 17,500 17,440
due 12/13/1999-1/11/2000
BellSouth Telecommunications, Inc. 5.28% - 15,000 14,994
due 12/3/1999 (2)
Alcoa Inc. 5.30%-5.48% due 12/1-12/3/1999 - 13,465 13,460
USAA Capital Corp. 5.85%-6.03% due 1/24-1/30/2000 21,500 21,403 13,400 13,273
Motorola, Inc. 5.32% due 12/23/1999 - 12,300 12,258
PACCAR Financial Corp. 5.27% due 12/10/1999 - 7,400 7,389
American Express Credit Corp. 5.55% due 3/1/2000 21,000 20,793 - -
Colgate-Palmolive Co. 5.95% due 1/28/2000 (2) 8,900 8,859 - -
Sara Lee Corp. 5.87% due 1/6/2000 8,100 8,092 - -
Anheuser-Busch Companies, Inc. 6.05% due 2/11/2000 7,500 7,447 - -
Merck & Co. Inc. 6.15% due 2/1/2000 7,300 7,260 - -
Gillette Co. 5.85% 1/10/2000 (2) 4,600 4,592 - -
Park Avenue Receivables 6.15% due 1/10/2000 (2) 4,250 4,243 - -
Associates First Capital Corp. 4.00% due 1/3/2000 3,500 3,499 - -
National Rural Utilities Cooperative Finance 3,300 3,265 - -
Corp. 5.98% due 3/7/2000
Procter & Gamble Co. 6.05% due 2/11/2000 2,700 2,681 - -
FEDERAL AGENCY DISCOUNT NOTES - 0.90% / 2.17%
Freddie Mac 5.44%-5.75% due 12/16/1999-2/15/2000 15,700 15,585 37,211 37,114
---------- ----------
TOTAL SHORT-TERM SECURITIES (COST: 121,791 141,205
$121,799,000 and $141,204,000, respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (COST: 1,720,072 1,714,981
$1,463,070,000 and $1,479,346,000, respectively)
Net cash, receivables and payables 8,048 (468)
---------- ----------
NET ASSETS 1,728,120 1,714,513
(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)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)Company not making interest payments; bankruptcy
proceedings pending.
(6) Coupon rate changes periodically.
(7) Step bond; coupon rate will increase at a later date.
(8) 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.
(9) Index-linked bond, which is a floating-rate note whose
principal amount moves with a government retail price
index.
ADR=American Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series Bond Fund
Investment Portfolio, December 31 and
November 30, 1999
<S> <C> <C> <C> <C>
December November 30
Corporate Bonds 60.89% 61.25%
U.S. Government Bonds 16.80% 17.99%
Equity Securities 7.65% 7.79%
Non-U.S. Government Bonds 3.03% 3.24%
Cash & Equivalents 11.63% 9.73%
December December November November 30
Principal Market Principal Market
Amount Value Amount Value
Bonds & Notes (000) (000) (000) (000)
- -------------------------------------------- -------- -------- -------- --------
WIRELESS TELECOMMUNICATION SERVICES
- 8.02%/7.89%
Nextel Communications, Inc.:
0%/9.95% 2008(1) $2,625 $1,844 $2,625 $1,851
0%/9.75% 2007(1) 2,475 1,763 2,475 1,776
0%/10.65% 2007(1) 1,275 953 1,275 959
12.00% 2008 500 560 500 557
McCaw International, Ltd. (owned by Nextel 2,125 1,466 2,125 1,413
Communications, Inc.)
0%/13.00% 2007 (1)
Nextel International, Inc. 0%/12.125% 2008(1) 1,000 590 1,000 550
Clearnet Communications Inc.:(1)
0%/11.75% 2007 C$2658 1,310 C$2,658 1,271
0%/10.40% 2008 3,000 1,312 3,000 1,267
0%/10.125% 2009 $ 500 304 $ 500 306
Omnipoint Corp.:
11.625% 2006 1,500 1,590 1,500 1,590
11.50% 2009 (2) 1,000 1,080 1,000 1,080
Esat Telecom Group PLC 0%/12.50% 2007(1) 2,000 1,700 2,000 1,500
Crown Castle International Corp.:
0%/10.625% 2007(1) 1,000 755 1,000 750
0%/11.25% 2011(1)(2) 1,000 625 1,000 620
VoiceStream Wireless Corp. 10.375% 2009(2) 1,000 1,030 1,000 1,043
PanAmSat Corp. 6.125% 2005 1,000 886 1,000 894
SpectraSite Holdings, Inc.:
0%/11.25% 2009(1) 1,125 602 1,125 574
0%/12.00% 2008(1) 500 295 500 285
PageMart Wireless, Inc.:
0%/15.00% 2005(1) 500 439 500 440
0%/11.25% 2008(1) 750 255 750 233
American Cellular Corp. 10.50% 2008 500 554 500 555
Dobson/Sygnet Communications Co. 12.25% 2008 250 277 250 278
Conecel Holdings Ltd.:
14.00% 2002(3) 500 153 500 121
Series A, 14.00% 2000(2)(3)(4) 600 60 600 60
BROADCASTING & PUBLISHING - 7.15%/7.57%
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007(1) 2,750 2,200 2,750 2,186
8.875% 2007 500 509 500 510
Charter Communications Holdings, LLC:
0%/9.92% 2011(1) 3,250 1,901 3,250 1,966
8.25% 2007 500 465 500 472
CBS Corp. 7.15% 2005 2,000 1,962 2,000 1,981
Liberty Media Corp. 7.875% 2009(2) 1,900 1,891 1,900 1,898
Comcast UK Cable Partners Ltd. 0%/11.20% 2007(1) 650 617 650 611
NTL Communications Corp.
11.50% 2008 500 540 500 543
Series B, 10.00% 2007 250 256 250 256
Hearst-Argyle Television, Inc. 7.00% 2018 1,500 1,333 1,500 1,337
Time Warner Inc.:
7.75% 2005 500 506 500 511
7.95% 2000 500 501 500 501
Chancellor Media Corp. of Los Angeles:
Series B, 8.75% 2007 500 510 500 500
8.125% 2007 500 501 500 495
British Sky Broadcasting Group PLC 8.20% 2009(2) 1,000 967 1,000 953
Cablevision Industries Corp. 8.125% 2009 750 737 750 747
American Media Operations, Inc. 10.25% 2009 750 759 750 743
Cox Communications, Inc. 7.75% 2006 - - 700 712
Telemundo Holdings, Inc. 0%/11.50% 2008(1) 1,000 595 1,000 570
Ziff-Davis Inc. 8.50% 2008 500 521 500 490
Comcast Cable Communications, Inc. 8.875% 2017 - - 250 276
Rogers Communications, Inc. 8.875% 2007 250 252 250 251
V2 Music Holdings PLC 0%/14.00% 2008(1)(2) L575 251 L575 248
RBS Participacoes SA 11.00% 2007(2) 250 212 250 199
TVN Entertainment Corp. 14.00% 2008(2) 300 84 300 120
Globo Comunicacoes Participacoes Ltd. 10.50% 2006(2) 120 104 120 100
BANKING - 7.10%/7.18%
Advanta Corp.:
Series B, 7.00% 2001 2,265 2,123 2,265 2,121
Series D, 6.98% 2002 1,000 913 1,000 912
Series D, 6.925% 2002 500 456 500 456
Advanta Capital Trust I 8.99% 2026 500 345 500 330
J.P. Morgan & Co. Inc.:
Series A, 6.783% 2012(5) 2,000 1,729 2,000 1,755
Series A, 6.00% 2009 340 304 340 310
SocGen Real Estate Co. LLC, Series A, 2,250 2,030 2,250 2,059
7.64% (undated)(1)(2)(6)
Bank One Corp.:
Series A, 6.00% 2009 1,080 961 1,080 978
Series A, 5.625% 2004 1,000 938 1,000 946
Deutsche Bank Capital Funding Trust I 7.872% 2,000 1,897 2,000 1,907
(undated)(2)(6)
Sakura Capital Funding 6.446% (undated)(2)(6) 1,000 948 1,000 947
Abbey National PLC 6.70% (undated)(6) 970 875 970 886
National Westminster Bank PLC:
7.75% (undated)(6) 500 480 500 487
9.375% 2003 276 293 276 296
MBNA Corp., MBNA Capital A, Series A, 8.278% 2026 850 739 850 754
Capital One Bank 6.375% 2003 500 480 500 482
Capital One Capital I 7.755% 2027 (2)(6) 250 216 250 216
Imperial Capital Trust I, Imperial Bancorp 9.98% 202 550 489 550 502
Chevy Chase Bank, FSB 9.25% 2008 500 470 500 480
Riggs Capital Trust II 8.875% 2027 500 446 500 452
Bank of Scotland 7.00% (undated)(2) 480 444 480 443
Bankers Trust New York Corp. 6.70% 2007 250 235 250 239
Komercni Finance BV 9.00%/10.75% 2008(1)(2) 250 233 250 234
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED) - 4.56%/4.62%
GS Mortgage Securities Corp. II, mortgage
pass-through certificates:
Series 1998-C1, Class E, 7.333% 2030(6) 1,250 1,074 1,250 1,076
Series 1998-C1, Class D, 7.333% 2030(6) 1,000 899 1,000 880
Nomura Asset Securities Corp., Series 1998-D6, 1,748 1,680 1,762 1,707
Class A-A1, 6.28% 2030(6)
L.A. Arena Funding, LLC, Series 1, Class A, 1,300 1,159 1,300 1,172
7.656% 2026(2)
Merrill Lynch Mortgage Investors, Inc.:
Series 1995-C3, Class A-3, 6.995% 2025(6) 1,000 984 1,000 991
Series 1995-C2, Class A-1, 7.108% 2021(6) 141 140 146 144
CS First Boston Mortgage Securities Corp., 1,106 1,067 1,114 1,084
Series 1998-C1, Class A-1A, 6.26% 2040
Morgan Stanley Capital I Inc., 1,000 940 1,000 954
Series 1998-HF2, Class A-2, 6.48% 2030
Norwest Asset Securities Corp., 879 834 885 843
Series 1998-31, Class A-1, 6.25% 2014
LB Commercial Mortgage Trust, Series 1998-C1, 850 830 856 842
Class A1, 6.33% 2030
Structured Asset Securities Corp., 669 684 679 698
Series 1998-RF2, Class A, 8.55% 2027 (2)(6)
DLJ Mortgage Acceptance Corp., 600 593 600 597
Series 1995-CF2, Class A1B, 6.85% 2027 (2)
Commercial Mortgage Acceptance Corp., 449 432 452 438
Series 1998-C1, Class A-1, 6.23% 2007
GMAC Commercial Mortgage Securities, Inc., 278 277 283 283
Series 1997-C1, Class A1, 6.83% 2003
LEISURE & TOURISM - 4.60%/4.45%
Joseph E. Seagram & Sons, Inc. 6.625% 2005 2,000 1,909 2,000 1,920
Mirage Resorts, Inc.:
6.625% 2005 2,000 1,829 2,000 1,824
6.75% 2007 500 441 - -
Horseshoe Gaming Holding Corp. 8.625% 2009 1,500 1,432 1,500 1,444
Royal Caribbean Cruises Ltd.:
7.25% 2018 1,000 893 1,000 907
7.00% 2007 500 470 500 476
William Hill Finance 10.625% 2008 L750 1,242 L750 1,251
Premier Parks Inc.:
9.75% 2007 $1,000 1005 $1,000 991
0%/10.00% 2008(1) 250 171 250 170
Florida Panthers Holdings, Inc. 9.875% 2009 1,000 990 1,000 960
Boyd Gaming Corp. 9.50% 2007 500 495 500 492
Carmike Cinemas, Inc., Series B, 9.375% 2009 375 328 375 358
International Game Technology 8.375% 2009 250 242 250 242
Harrah's Operating Co., Inc. 7.875% 2005 250 241 250 242
DIVERSIFIED TELECOMMUNICATION SERVICES
- 3.89%/3.89%
Cable & Wireless Communications PLC:
6.625% 2005 3,660 3,615 3,660 3,651
6.75% 2008 500 493 500 501
COLT Telecom Group PLC:
8.875% 2007 DM1,250 691 DM1,250 689
7.625% 2008 1,000 514 1,000 526
0%/12.00% 2006(1) $250 220 $ 250 215
NEXTLINK Communications, Inc.:
0%/12.25% 2009(1) 1,500 953 1,500 908
9.625% 2007 500 491 500 488
Time Warner Telecom Inc. 9.75% 2008 1,225 1,256 1,225 1,262
Versatel Telecom International NV 11.875% 2009 750 767 750 756
Qwest Communications International Inc. 750 588 750 564
0%/8.29% 2008(1)
Allegiance Telecom, Inc. 0%/11.75% 2008(1) 250 178 250 177
Viatel, Inc. 11.25% 2008 125 124 125 124
FINANCIAL SERVICES - 2.86%/3.30%
Ford Motor Credit Co.:
7.375% 2009 - - 1,000 1,004
5.80% 2009 1,000 886 1,000 899
AT&T Capital Corp. 6.875% 2001 1,000 1,000 1,000 1,002
Toyota Motor Credit Corp. 6.00% 2003 1,000 969 1,000 974
Capital One Financial Corp. 7.125% 2008 1,000 912 1,000 927
AB Spintab 7.50% (undated)(2)(6) 750 718 750 720
Providian Financial Corp. 9.525% 2027(2) 750 636 750 646
BHP Finance Ltd. 6.69% 2006 600 569 600 576
Household Finance Corp. 6.40% 2008 500 462 500 470
MBNA Corp., MBNA 6.75% 2008 500 460 500 465
GS Escrow Corp. 7.125% 2005 500 449 500 454
BankUnited Capital Trust, BankUnited Financial 250 218 250 227
Corp., 10.25% 2026
TRANSPORTATION: AIRLINES - 2.59%/2.66%
Continental Airlines, Inc., pass-through
certificates(7):
Series 1998-3, Class C-2, 7.25% 2005 500 479 500 485
Series 1997-1, Class C, 7.42% 2007 470 459 470 462
Series 1999-1, Class B, 6.795% 2020 500 454 500 462
Series 1998-3, Class A-2, 6.32% 2008 500 454 500 461
Series 1998-1, Class A, 6.648% 2019 489 444 489 448
Series 1996, Class C, 9.50% 2015 228 235 228 238
Airplanes Pass Through Trust, pass-through 1,663 1,546 1,710 1,608
certificates Series 1, Class C, 8.15% 2019(7)
Atlas Air, Inc. pass-through trust, Series 1998-1, 1,474 1,337 1,474 1,360
Class A, 7.38% 2018(7)
Jet Equipment Trust(2)(7):
Series 1995-D, 11.44% 2014 300 338 300 345
Series 1994-A, Class B1,11.79% 2013 250 292 250 304
United Air Lines, Inc. 10.67% 2004(7) 500 548 500 552
MULTI-INDUSTRY - 2.48%/2.50%
Sony Corp. 6.125% 2003 2,500 2,437 2,500 2,453
American Standard Inc.:
8.25% 2009(2) 1,000 962 1,000 995
7.125% 2006 EUR 500 506EUR 500 500
Graham Packaging Co.:
0%/10.75% 2009(1) $750 510 $750 510
8.75% 2008 500 480 500 480
Reliance Industries Ltd.:
10.25% 2097(2) 500 440 500 429
Series B, 10.25% 2097 250 220 250 215
Wharf International Finance Ltd., Series A, 515 478 515 466
7.625% 2007
Hutchison Whampoa Finance (CI) Ltd., 300 281 300 283
Series D, 6.988% 2037(2)
ENERGY SOURCES - 2.18%/2.21%
Petrozuata Finance, Inc.:
Series B, 8.22% 2017(2) 1,500 1,117 1,500 1,129
Series A, 7.63% 2009(2) 1,000 805 1,000 796
Union Pacific Resources Group Inc. 7.30% 2009 840 807 840 814
USX Corp. 6.65% 2006 1,000 949 1,000 959
PDVSA Finance Ltd.:
7.40% 2016 485 357 485 369
9.75% 2010(2) 250 235 250 244
Norcen Energy Resources Ltd. 7.375% 2006 500 487 500 490
Louis Dreyfus Natural Gas Corp. 9.25% 2004 500 507 500 508
Pioneer Natural Resources Co. 7.20% 2028 375 273 375 278
Asset-Backed Obligations - 2.15%/2.01%
ComEd Transitional Funding Trust, Transitional
Funding Trust Notes:
Series 1998, Class A-4, 5.39% 2005 2,000 1,919 2,000 1,930
Series 1998, Class A-6, 5.63% 2009 500 464 500 468
Conseco Finance Home Loan Trust, Series 1,250 1,242 1,250 1,253
1999-G, Class B-2, 10.96% 2029
Sears Credit Account Master Trust II, 1,000 937 1,000 945
Series 1998-2, Class A, 5.25% 2008
FIRSTPLUS Home Loan Owner Trust, 500 495 500 496
Series 1997-1, Class A-6, 6.95% 2015
Green Tree Financial Corp., pass through 499 414 - -
certificates, Series 1996-5, Class B-2, 8.45% 2027
FOREST PRODUCTS & PAPER - 2.07%/2.00%
Pindo Deli Finance Mauritius Ltd.:
10.75% 2007 1,450 1,055 1,450 1,026
10.25% 2002 500 396 500 376
Kappa Beheer BV 10.625% 2009(2) EUR 750 796EUR 1250 1,309
Container Corp. of America 9.75% 2003 $1,000 1,020 $1,000 1,020
Fort James Corp. 6.625% 2004 500 482 500 486
Packaging Corp. of America 9.625% 2009 375 383 375 387
Pacifica Papers 10.00% 2009 250 258 250 258
Scotia Pacific Co. LLC, Series B, Class A-2, 1000 874 250 206
7.11% 2028
INDUSTRIAL COMPONENTS - 1.62%/1.64%
Federal-Mogul Corp.:
7.375% 2006 2,000 1,826 2,000 1,841
7.75% 2006 1,000 926 1,000 935
7.50% 2009 1,000 886 1,000 894
TRW Inc. 7.125% 2009(2) 500 473 500 480
BREED Technologies, Inc. 9.25% 2008(3) 1,000 15 1,000 15
INSURANCE - 1.63%/1.61%
Lindsey Morden Group Inc., Series B, 7.00% 2008(2) C$2,750 1,702 C$2,750 1,679
Royal & Sun Alliance Insurance Group PLC $750 766 $750 759
8.95% 2029(2)
Conseco, Inc. 9.00% 2006 750 773 750 747
Jefferson Pilot Corp. 8.14% 2046(2) 700 645 700 649
ReliaStar Financial Corp. 8.00% 2006 250 251 250 255
UTILITIES: ELECTRIC & GAS - 1.33%/1.50%
Israel Electric Corp. Ltd.(2):
7.70% 2018 1,000 888 1,000 880
7.75% 2027 620 536 620 547
8.25% 2009 400 399 400 397
7.75% 2009 250 241 250 241
Transener SA 9.25% 2008(2) 1,000 873 1,000 872
Commonwealth Edison Co. 9.875% 2020 400 431 400 441
United Utilities PLC 6.875% 2028 - - 500 425
HEALTH CARE PROVIDERS & SERVICES - 1.19%/1.20%
Columbia/HCA Healthcare Corp.:
6.91% 2005 2,000 1,830 2,000 1,816
8.85% 2007 500 489 500 491
7.15% 2004 500 470 500 471
Integrated Health Services, Inc.(3):
Series A, 9.25% 2008 2,000 165 2,000 180
Series A, 9.50% 2007 750 62 750 68
BUSINESS SERVICES - 1.47%/0.99%
Waste Management, Inc.:
6.625% 2002 925 862 925 844
6.875% 2009(2) 500 421 500 414
Allied Waste North America, Inc. 10.00% 2009(2) 1,625 1,450 1,375 1,256
Cendant Corp. 7.75% 2003 1,000 998 - -
MERCHANDISING - 0.26%/0.63%
Federated Department Stores, Inc. 6.30% 2009 - - 1,000 919
J. C. Penney Co., Inc. 8.25% 2022 750 667 750 679
FOOD & HOUSEHOLD PRODUCTS - 0.52%/0.53%
Gruma, SA de CV 7.625% 2007 1,000 870 1,000 878
New World Pasta Co. 9.25% 2009 250 231 250 230
Fage Dairy Industry SA 9.00% 2007 250 220 250 225
MACHINERY & ENGINEERING - 0.48%/0.48%
Safety-Kleen Corp. 9.25% 2009 1,000 968 1,000 963
Deere & Co. 8.95% 2019 250 261 250 264
ENERGY EQUIPMENT & SERVICES - 0.45%/0.45%
McDermott Inc. 9.375% 2002 1,150 1,149 1,150 1,146
HEALTH & PERSONAL CARE - 0.42%/0.40%
Paracelsus Healthcare Corp. 10.00% 2006 1,000 580 1,000 528
Allegiance Corp. 7.00% 2026 500 486 500 483
CHEMICALS - 0.29%/0.29%
Equistar Chemicals, LP 8.75% 2009 750 741 750 744
ELECTRONIC COMPONENTS - 0.57%/0.24%
Hyundai Semiconductor America, Inc. 8.625% 2007(2) 1750 1455 750 609
APPLIANCES & HOUSEHOLD SERVICES - 0.20%/0.20%
Salton/Maxim Housewares, Inc. 10.75% 2005 500 515 500 510
IT CONSULTING & SERVICES - 0.19%/0.19%
Ceridian Corp. 7.25% 2004 500 483 500 488
MISCELLANEOUS MATERIALS & COMMODITIES - 0.19%/0.18%
Printpack, Inc. 10.625% 2006 500 483 500 466
METALS: NONFERROUS - 0.18%/0.18%
Freeport-McMoRan Copper & Gold Inc.:
7.20% 2026 500 378 500 378
7.50% 2006 100 73 100 74
ELECTRICAL & ELECTRONICS - 0.16%/0.17%
Zilog, Inc. 9.50% 2005 450 414 450 421
REAL ESTATE INVESTMENT TRUST - 0.09%/0.09%
ProLogis Trust 7.05% 2006 250 236 250 238
NON U.S. GOVERNMENT OBLIGATIONS - 3.03%/3.24%
Hellenic Republic 8.60% 2008 GRD475,00 1,644GRD475,00 1,629
Argentina (Republic of):
Series C, 0% 2001 $1,250 1,050 $1,250 1,048
11.00% 2005 500 489 500 474
Panama (Republic of) 8.875% 2027 1,750 1,474 1,750 1,457
Philippines (Republic of) 9.875% 2019 500 496 1,000 1,020
Ontario (Province of) 5.50% 2008 1,000 886 1,000 901
Canadian Government 4.599% 2026(5) C$1,000 767 C$1,000 748
Hungarian Government 15.00% 2001 HUF105,00 435HUF105,00 427
Venezuela (Republic of) Eurobond 6.313% 2007(6) $381 301 $405 317
Mendoza (Province of) 10.00% 2007(2) 200 157 200 151
FEDERAL AGENCY OBLIGATIONS: MORTGAGE
PASS-THROUGHS - 6.56%/6.70%
Government National Mortgage Assn.:
7.00% 2023-2029 4,628 4,479 4,652 4,551
6.00% 2029 3,453 3,140 3,463 3,199
8.00% 2023 1,976 1,996 2,004 2,036
6.50% 2025-2028 1,081 1,015 1,095 1,042
7.50% 2023-2024 1,012 1,005 1,015 1,016
10.00% 2019 345 372 352 381
9.50% 2021 332 352 341 362
Fannie Mae:
7.00% 2012-2026 1,706 1,666 1,721 1,697
6.50% 2013-2026 1,042 1,006 1,046 1,019
6.00% 2013 861 817 864 827
10.00% 2018-2025 471 504 479 515
9.00% 2021 303 316 309 323
FEDERAL AGENCY OBLIGATIONS: OTHER
- 4.14%/1.59%
Freddie Mac:
5.125%-6.60% 2004-2009 8,500 7,881 4,500 4,031
Fannie Mae 5.25% 2009 3,000 2,646 - -
U.S. TREASURY OBLIGATIONS - 6.10%/9.70%
6.25% 2003 8,000 7,976 14,250 14,308
7.50% 2005-2016 1,000 1,070 4,000 4,257
10.375% 2009-2012 1,500 1,791 1,500 1,817
8.875% 2017 2,575 3,112 1,325 1,632
7.25% 2004 1,500 1,547 1,500 1,564
5.75% 2002 - - 1,000 992
---------- ----------
TOTAL BONDS & NOTES (cost: $218,866,000 205,221 208,936
and $222,255,000 respectively)
---------- ----------
Number of
Shares or
Principal
Stocks (common and preferred) Amount
- -------------------------------------------- --------
BANKING - 3.06%/3.23%
Fuji JGB Investment LLC, Series A, 9.87% $2,100 $2,100 $2,350 $2,371
noncumulative preferred(Japan)(2)
SB Treasury Co. LLC, Series A, 9.40% $1,500 1,493 $1,500 1,523
noncumulative preferred(Japan)(2)
BNP U.S. Funding LLC, Series A, 7.738% $1,550 1,443 $1,550 1,443
noncumulative preferred(France)(2)
Tokai Preferred Capital Co. LLC, Series A,
9.98%/11.09% noncumulative preferred(Japan)(1)(2) $1,250 1,245 $1,250 1,269
First Republic Capital Corp. 10.50% preferred(2) 750 686 750 722
NB Capital Corp. 8.35% exchangeable depositary 20,000 430 20,000 463
IBJ Preferred Capital Co. LLC, Series A, $400 378 $400 382
8.79% noncumulative preferred(Japan)(2)
WIRELESS TELECOMMUNICATION SERVICES - 0.75%/0.70%
Crown Castle International Corp. 1,133 1,173 1,098 1,143
12.75% Senior Exchangeable Preferred 2010 (8)(9)
Nextel Communications, Inc.,
Series D, 13.00% exchangeable preferred 328 348 328 348
redeemable 2009 (8)(9)
McCaw International, Ltd. (owned by Nextel 2,000 5 2,000 5
Communications, Inc.) warrants, expire 2007
(2)(4)(9)
Esat Holdings Ltd., warrants, expire 2007 2,000 367 2,000 261
(Ireland)(2)(4)(9)
Globalstar Telecommunications Ltd., warrants, 250 13 250 16
expire 2004(9)
Conecel Holdings Ltd., Class B, warrants, 15,500 1 15,500 1
expire 2000 (Ecuador)(2)(4)(9)
Iridium World Communications Ltd. warrants, 250 - 250 -
expire 2005 (Bermuda)(2)(4)(9)
MULTI-INDUSTRY - 0.52.%/0.50%
Swire Pacific Capital Ltd. 65,000 1,316 65,000 1,268
8.84% cumulative guarantedd perpetual
capital securities (2)
REAL ESTATE - 0.41%/0.43%
ProLogis Trust, Series D, 7.92% preferred 40,000 730 40,000 770
CarrAmerica Realty Corp., Series B, 8.57% 20,000 323 20,000 314
cumulative redeemable preferred
BROADCASTING & PUBLISHING - 0.23%/0.23%
Adelphia Communications Corp., Series B, 5,000 550 5,000 564
13.00% 2009 (9)
NTL Inc., warrants, expire 2008 (2)(4)(9) 238 31 238 22
TVN Entertainment Corp., warrants, 300 - 300 -
expires 2008(2)(4)(9)
DIVERSIFIED TELECOMMUNICATION SERVICES
- 0.16%/0.11%
COLT Telecom Group PLC (ADR)(United Kingdom)(9) 1,950 398 1,950 291
RECREATION OTHER CONSUMER PRODUCTS
- 0.00%/0.00%
V2 Music Holdings PLC, warrants, expire 2000 575 - 575 -
(United Kingdom)(2)(9)
---------- ----------
TOTAL STOCKS (cost: $11,954,000 and 13,030 13,176
$12,169,000 respectively)
---------- ----------
Principal
Amount
Convertible Debentures (000)
- -------------------------------------------- --------
DIVERSIFIED TELECOMMUNICATION SERVICES
- 1.27%/1.37%
Bell Atlantic Financial Services, Inc.:
4.25% convertible debentures 2005(2) 2,000 2,460 2,500 2,719
5.75%,convertible debentures 2003(2) 750 758 750 744
BUSINESS SERVICES - 0.57%/0.56%
USA Waste Services, Inc. 4.00% 2002 $1,400 1,190 $1,400 1,169
EarthWatch Inc., Series B, 7.00% convertible 72 250 72 250
preferred 2009(4)(8)(9)
WHOLESALE & INTERNATIONAL TRADE
- 0.24%/0.24%
Ingram Micro Inc. 0% convertible debentures 2018 1,900 618 1,900 610
ELECTRONIC COMPONENTS - 0.25%/0.23%
Advanced Micro Devices, Inc. 6.00% convertible 625 638 625 591
subordinated notes 2005
MERCHANDISING - 0.19%/0.19%
Sunglass Hut International Ltd. 5.25% 600 483 600 483
convertible debentures 2003
---------- ----------
TOTAL CONVERTIBLE DEBENTURES (cost: 6,397 6,566
$5,904,000 and $6,379,000 respectively)
---------- ----------
TOTAL EQUITY SECURITIES (cost: 19,427 19,742
$17,858,000 and $18,548,000 respectively)
---------- ----------
Short-Term Securities
- --------------------------------------------
Corporate Short-Term Notes - 10.23%/7.14%
Associates Corp. of North America 5.71% - - 7,700 7,699
due 12/1/1999
Wal-Mart Stores Inc. 5.48%-5.53% due - - 7,200 7,178
12/20-12/21/1999 (2)
E.I. du Pont de Nemours and Co. 5.29% due 12/3/1999 - - 3,200 3,198
Associats First Capital Corp. 4.00% due 1/3/2000 6,060 6,058 - -
Avon Capital Corp. 6.70% due 1/6/2000 (2) 4,000 3,995 - -
Equilon Enterprises, LLC 6.25% 1/10/2000 4,000 3,993 - -
Halliburton Co. 6.30% 1/4/2000 7,000 6,995 - -
John Hancock Capital Corp. 5.90% 1/4/2000 (2) 5,000 4,997 - -
Federal Agency Discount Notes - 0.00%/0.87%
Freddie Mac 5.30% due 12/10/1999 - - 2,200 2,197
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: 26,038 20,272
$26,038,000 and $20,272,000 respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 250,686 248,950
$262,762,000 and $261,075,000 respectively)
Excess of cash and receivables over payables 3,548 4,367
---------- ----------
NET ASSETS $254,234 $253,317
========== ==========
(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) Company not making interest or dividend
payments; bankruptcy proceedings pending.
(4) Valued under procedures established by
the Board of Trustees.
(5) Index-linked bond whose principal amount moves
with agovernment retail price index.
(6) Coupon rate may change periodically.
(7) Pass-through securities backed by a pool of
mortgages or other assets 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, December 31 and November 30, 1999
<S> <C> <C> <C> <C>
31-Dec 30-Nov
Percent oPercent of
net assetnet assets
Corporate Bonds 78.01% 77.90%
Non-U.S. Govt Agencies 1.61% 1.56%
Equity Securities 14.75% 13.65%
Cash & Equivalents 5.63% 6.89%
100.00% 100.00%
Nextel Communications 4.46 4.59
Omnipoint 4.68 4.47
COLT Telecom 4.46 3.73
NTL 3.56 3.56
Charter Communications 1.97 2.03
Crown Castle International 2.05 2.01
Viatel 1.71 1.99
Clearnet Communications 1.94 1.89
Chancellor Media Corp of Los Angeles 1.78 1.75
Container Corp. of America 1.73 1.74
Principal Market Principal Market
Amount Value Amount Value
BONDS & NOTES (000) (000) (000) (000)
- -------------------------------------------- -------- -------- -------- --------
WIRELESS TELECOMMUNICATION SERVICES
- 19.50%/19.05%
Omnipoint Corp.:
11.625% 2006 $12,700 $13,462 $12,700 $13,462
14.00% 2003 (1)(2)(3) 9,996 10,476 9,342 9,903
9.40%-10.479% 2006 (1)(4) 5,000 4,975 5,000 4,850
Nextel Communications, Inc.(5):
0%/9.95% 2008 11,000 7,728 11,000 7,755
0%/10.65% 2007 6,500 4,859 6,500 4,891
0%/9.75% 2007 3,000 2,137 3,000 2,152
McCaw International, Ltd. (owned by Nextel
Communications, Inc.) 0%/13.00% 2007 (5) 7,000 4,830 7,000 4,655
Nextel International, Inc. 0%/12.125% 2008 (5) 6,000 3,540 6,000 3,300
Nextel Partners Inc. 0%/14.00% 2009 (5) 1,600 1,048 350 227
Clearnet Communications Inc.(5):
0%/11.75% 2007 C$20,825 10,261C$20,825 9,962
0%/10.40% 2008 7,000 3,062 7,000 2,957
American Cellular Corp. 10.50% 2008 $7,850 8,694 $7,850 8,714
SpectraSite Holdings, Inc.(5):
0%/11.25% 2009 7,875 4,213 7,875 4,016
0%/12.00% 2008 5,250 3,098 5,250 2,993
Esat Telecom Group PLC:
0%/12.50% 2007 (5) 5,125 4,356 5,125 3,844
11.875% 2008 2,750 3,059 2,750 2,943
PageMart Wireless, Inc. 0%/11.25% 2008 (5) 21,650 7,361 21,650 6,712
Crown Castle International Corp.(5):
0%/11.25% 2011 (1) 6,000 3,750 6,000 3,720
0%/10.625% 2007 3,500 2,642 3,500 2,625
CTI Holdings SA 0%/11.50% 2008 (5) 10,500 6,064 10,500 5,801
VoiceStream Wireless Corp.(1):
0%/11.875% 2009 (5) 7,500 4,538 7,500 4,556
10.375% 2009 1,000 1,030 1,000 1,042
Dobson Communications Corp. 11.75% 2007 2,750 3,101 2,750 3,080
Comunicacion Celular SA 0%/14.125% 2005 (1)(5) 5,000 2,394 5,000 2,531
Centennial Cellular Corp. 10.75% 2008 2,250 2,419 2,250 2,396
Occidente y Caribe Celular SA 0%/14.00% 2004 (5) 3,700 1,660 3,700 2,007
Telesystem International Wireless Inc. 2,450 1,568 3,450 1,984
0%/13.25% 2007 (5)
Loral Orion Network Systems, Inc. 11.25% 2007 2,400 1,800 2,400 1,776
Western Wireless Corp. 10.50% 2006 1,500 1,601 1,500 1,605
Teligent, Inc. 11.50% 2007 1,500 1,463 1,500 1,440
PTC International Finance BV 0%/10.75% 2007 (5) 2,000 1,345 2,000 1,365
Teletrac Holdings, Inc.(3):
9.00% 2004 492 394 492 394
senior note 10.00% 2000 116 116 116 116
Conecel Holdings Ltd.(6):
14.00% 2002 750 229 750 182
14.00% 2000(1)(3) 1,000 100 1,000 100
Cellco Finance NV 15.00% 2005(1) 250 272 250 263
BROADCASTING & PUBLISHING - 18.54%/18.56%
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 (5) 10,000 9,500 10,000 9,400
NTL Inc.:
0%/10.75% 2008 (5) L7,250 7,730 L7,250 7,870
0%/9.75% 2008 (5) $5,500 3,836 $5,500 3,754
11.50% 2008 1,500 1,620 1,500 1,627
Series B, 10.00% 2007 1,500 1,537 1,500 1,534
Charter Communications Holdings, LLC:
0%/9.92% 2011(5) 17,500 10,237 17,500 10,587
8.25% 2007 3,500 3,255 3,500 3,308
Chancellor Media Corp. of Los Angeles:
Series B, 8.75% 2007 6,000 6,120 6,000 6,000
8.125% 2007 4,500 4,511 4,500 4,455
9.375% 2004 1,500 1,549 1,500 1,526
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007 (5) 8,085 6,468 8,085 6,428
8.875% 2007 4,410 4,487 4,410 4,498
American Media Operations, Inc. 10.25% 2009 6,650 6,733 6,650 6,584
ACME Intermediate Holdings, LLC 0%/12.00% 2005 (5) 8,911 6,327 8,911 6,238
Ziff-Davis Inc. 8.50% 2008 6,000 6,248 6,000 5,880
Gray Communications Systems, Inc. 10.625% 2006 5,250 5,421 5,250 5,408
Muzak Holdings LLC 0%/13.00% 2010(5) 6,500 3,867 6,500 3,770
Muzak LLC 9.875% 2009 1,000 972 1,000 963
Big City Radio, Inc. 0%/11.25% 2005 (5) 6,000 4,020 6,000 4,095
Globo Comunicacoes Partcipacoes Ltda.:
10.50% 2006(1) 2,750 2,386 2,750 2,289
10.50% 2006 1,000 867 1,000 832
FrontierVision 11.00% 2006 2,750 2,901 2,750 2,901
Avalon Cable of Michigan LLC:
9.375% 2008 2,500 2,519 2,500 2,513
0%/11.875% 2008(5) 500 326 500 330
Cablevision Industries Corp. 9.875% 2013 2,500 2,637 2,500 2,606
TVN Entertainment Corp. 14.00% 2008 (1) 6,500 1,820 6,500 2,600
Antenna TV SA 9.00% 2007 2,750 2,530 2,750 2,530
Multicanal Participacoes SA, Series B, 12.625% 2004 2,375 2,399 2,375 2,399
V2 Music Holdings PLC:
0%/14.00% 2008(1)(5) 6,900 1,863 6,900 1,863
0%/14.00% 2008(1)(5) L1,000 436 L1,000 431
TransWestern Publishing Co. LLC 9.625% 2007 $2,250 2,233 $2,250 2,182
TeleWest Communications PLC 9.625% 2006 2,000 2,035 2,000 2,040
Falcon Holding Group, LP, Falcon Funding Corp. 2,000 2,015 2,000 2,005
8.375% 2010
STC Broadcasting, Inc. 11.00% 2007 2,000 1,985 2,000 1,990
Telemundo Holdings, Inc. 0%/11.50% 2008 (5) 2,500 1,488 2,500 1,425
RBS Participacoes SA 11.00% 2007(1) 1,000 848 1,000 797
Young Broadcasting Inc. 10.125% 2005 750 763 750 765
Sun Media Corp. 9.50% 2007 325 322 325 323
Cumulus Media Inc. 10.375% 2008 250 261 250 261
DIVERSIFIED TELECOMMUNICATION SERVICES
- 8.61%/8.88%
Viatel, Inc.:
11.25% 2008 3,300 3,284 5,550 5,495
0%/12.50% 2008 (5) 7,000 4,393 7,000 4,270
11.15% 2008 DM6,000 3,094 DM6,000 3,027
0%/12.40% 2008 (5) 1,000 334 1,000 324
COLT Telecom Group PLC:
0%/12.00% 2006 (5) $11,250 9,900 $11,250 9,675
8.875% 2007 DM5,000 2,765 DM5,000 2,754
NEXTLINK Communications, Inc.:
9.625% 2007 $3,500 3,439 $3,500 3,412
9.00% 2008 3,000 2,843 3,000 2,827
0%/12.25% 2009(5) 3,500 2,223 3,500 2,117
0%/12.125% 2009(1)(5) 2,750 1,602 2,750 1,554
12.50% 2006 1,000 1,080 1,000 1,070
Time Warner Telecom Inc. 9.75% 2008 7,625 7,816 7,625 7,854
US Xchange, LLC 15.00% 2008 4,625 3,608 4,625 3,839
Allegiance Telecom, Inc.:
0%/11.75% 2008 (5) 4,250 3,033 4,250 3,018
12.875% 2008 625 706 625 694
Global TeleSystems Group, Inc. 9.875% 2005 3,600 3,294 3,600 3,312
GST Equipment Funding, Inc. 13.25% 2007 3,000 2,970 3,000 3,000
IMPSAT Corp. 12.375% 2008 1,750 1,562 1,750 1,435
Versatel Telecom International NV 11.875% 2009 EUR 1,000 1,076EUR 1,000 1,057
LEISURE & TOURISM - 5.71%/5.95%
Horseshoe Gaming Holdings Corp. 8.625% 2009 $ 8,00 7,640 $ 8,00 7,700
William Hill Finance 10.625% 2008 3,550 5,878 3,550 5,922
Premier Parks Inc.:
9.75% 2007 2,625 2,671 2,625 2,665
0%/10.00% 2008 (5) 2,500 1,713 2,500 1,700
Boyd Gaming Corp.:
9.25% 2003 3,250 3,291 3,250 3,283
9.50% 2007 1,000 990 1,000 985
AMF Bowling Worldwide, Inc.:
10.875% 2006 3,500 1,470 4,250 2,380
0%/12.25% 2006 (5) 2,751 880 2,751 1,265
Sun International Hotels Ltd., Sun International
North America, Inc.:
8.625% 2007 2,250 2,115 2,250 2,093
9.00% 2007 750 724 750 712
International Game Technology 7.875% 2004 2,800 2,702 2,800 2,730
Carmike Cinemas, Inc., Series B, 9.375% 2009 2,750 2,406 2,750 2,626
Harrah's Operating Co., Inc. 7.875% 2005 2,275 2,190 2,275 2,198
Six Flags Entertainment Corp. 8.875% 2006 2,000 1,955 2,000 1,960
KSL Recreation Group, Inc. 10.25% 2007 1,250 1,250 1,250 1,231
Friendly Ice Cream Corp. 10.50% 2007 925 786 925 800
Florida Panthers Holdings, Inc. 9.875% 2009 500 495 500 480
FOREST PRODUCTS & PAPER - 3.47%/3.97%
Container Corp. of America:
9.75% 2003 9,600 9,792 9,600 9,792
Series A, 11.25% 2004 2,000 2,070 2,000 2,080
Kappa Beheer BV:
0%/12.50% 2009(1)(5) 4,750 2,999 4,750 2,930
10.625% 2009(1) 1,500 1,592 1,500 1,578
Paperboard Industries International Inc. 8.375% 2007 1,250 1,188 4,000 3,680
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 2,300 2,035 2,300 1,984
10.00% 2007 250 186 250 178
Advance Agro PCL 13.00% 2007 3,200 2,064 3,200 2,096
Pacifica Papers Inc. 10.00% 2009 - - 1,000 1,030
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1,300 946 1,300 920
Copamex Industrias, SA de CV, Series B, 11.375% 2004 1,000 907 1,000 908
FOOD & HOUSEHOLD PRODUCTS - 2.91%/3.01%
Fage Dairy Industry SA 9.00% 2007 10,500 9,240 10,500 9,450
Home Products International, Inc. 9.625% 2008 7,500 6,844 7,500 6,769
Salton/Maxim Housewares, Inc. 10.75% 2005 3,125 3,219 3,125 3,187
DGS International Finance Co. 10.00% 2007(1) 1,250 641 2,000 1,205
MULTI-INDUSTRY - 2.50%/2.48%
Graham Packaging Co.:
0%/10.75% 2009 (5) 6,500 4,420 6,500 4,420
8.75% 2008 4,250 4,080 4,250 4,080
Tekni-Plex, Inc. 9.25% 2008 5,500 5,638 5,500 5,500
Wharf International Finance Ltd. 7.625% 2007 3,000 2,786 3,000 2,712
Reliance Industries Ltd. 10.50% 2046(1) 250 238 250 236
BUSINESS SERVICES - 3.04%/2.74%
Allied Waste North America, Inc. 10.00% 2009(1) 8,875 7,921 8,375 7,653
Safety-Kleen Services, Inc. 9.25% 2008 7,375 7,135 7,375 7,228
EarthWatch Inc. 0%/12.50% 2005(1)(3)(5) 2,880 1,925 2,880 1,905
Iron Mountain Inc.:
10.125% 2006 1,500 1,530 1,500 1,549
8.75% 2009 350 336 350 331
Stericycle Inc. 12.375% 2009(1) 1,000 1,020 1,000 1,015
Waste Management, Inc. 7.70% 2002 1,000 958 1,000 944
BEVERAGES & TOBACCO - 1.66%/1.67%
Delta Beverage Group, Inc. 9.75% 2003 6,200 6,200 6,200 6,200
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 3,750 3,741 3,750 3,741
8.75% 2003 1,500 1,466 1,500 1,470
ELECTRONIC COMPONENTS - 1.76%/1.48%
Flextronics International Ltd. 8.75% 2007 4,500 4,410 4,500 4,466
Samsung Electronics Co., Ltd.(1):
7.45% 2002 3,150 3,098 3,150 3,080
9.75% 2003 500 516 500 519
Advanced Micro Devices, Inc. 11.00% 2003 2,250 2,216 2,000 1,940
Fairchild Semiconductor Corp. 10.375% 2007 1,750 1,785 150 153
MISCELLANEOUS MATERIALS & COMMODITIES - 1.47%/1.47%
Printpack, Inc. 10.625% 2006 4,258 4,109 4,258 3,971
Anchor Glass Container Corp. 11.25% 2005 4,000 3,600 4,000 3,760
Impress Metal Packaging Holdings BV 9.875% 2007 DM4,750 2,370 DM4,750 2,323
ENERGY SOURCES - 1.71%/1.35%
Cross Timbers Oil Co.:
Series B, 9.25% 2007 $3,000 2,962 $3,000 2,970
8.75% 2009 1,000 945 1,000 965
Pogo Producing Co.:
8.75% 2007 2,500 2,406 2,500 2,413
10.375% 2009 1,250 1,300 1,250 1,306
Petrozuata Finance, Inc.(1):
Series B, 8.22% 2017 1,000 745 1,000 752
Series A, 7.63% 2009 800 644 800 637
Newfield Exploration Co., Series B, 7.45% 2007 250 227 250 231
HS Resources, Inc. 9.25% 2006 2,500 2481 - -
METALS: NONFERROUS - 0.88%/0.87%
Kaiser Aluminum & Chemical Corp. 12.75% 2003 2,350 2,350 2,350 2,332
Doe Run Resources Corp. 11.25% 2005 2,000 1,895 2,000 1,820
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 2,400 1,813 2,400 1,815
BANKING - 0.71%/0.71%
Advanta Corp.:
Series D, 6.98% 2002 2,000 1,826 2,000 1,824
Series D, 6.925% 2002 2,000 1,824 2,000 1,822
7.50% 2000 500 495 500 494
Komercni Finance BV 9.00%/10.75% 2008(1)(5) 750 699 750 701
HEALTH & PERSONAL CARE - 1.67%/1.69%
Paracelsus Healthcare Corp. 10.00% 2006 13,000 7,540 13,000 6,857
Integrated Health Services, Inc.(6):
Series A, 9.25% 2008 9,250 763 9,250 832
Series A, 9.50% 2007 5,325 439 5,325 479
10.25% 2006 5,000 412 5,000 450
Tenet Healthcare Corp. 8.00% 2005 1,500 1,448 1,500 1,436
Sun Healthcare Group, Inc.(6):
9.375% 2008 (1) 8,000 560 8,000 1,000
Series B, 9.50% 2007 2,925 205 2,925 366
Mariner Health Group, Inc. 9.50% 2006 (6) 8,100 81 8,100 162
MERCHANDISING - 0.51%/0.52%
Kmart Corp., Series K-2, 9.78% 2020 2,000 2,052 2,000 2,050
DR Securitized Lease Trust, pass-through certificates, 1,500 1,474 1,500 1,474
Series 1994 K-2. 9.35% 2019 (7)
TRANSPORTATION: SHIPPING - 0.47%/0.47%
Teekay Shipping Corp. 8.32% 2008 3,500 3,211 3,500 3,185
ELECTRICAL & ELECTRONICS - 0.50%/0.44%
Zilog, Inc. 9.50% 2005 3,750 3,450 3,250 3,039
FINANCIAL SERVICES - 0.63%/0.44%
Providian Financial Corp. 9.525% 2027 (1) 3,500 2,966 3,500 3,014
GS Escrow Corp. 7.125% 2005 1,500 1,348 - -
RECREATION & OTHER CONSUMER PRODUCTS
- 0.44%/0.44%
Boyds Collection, Ltd. 9.00% 2008 3,137 2,980 3,137 2,980
AUTOMOBILES - 0.47%/0.57%
Key Plastics Holdings, Inc. 10.25% 2007 3,000 1,290 3,000 1,950
Hayes Lemmerz International, Inc., Series B, 2,000 1,820 2,000 1,835
8.25% 2008
BREED Technologies, Inc. 9.25% 2008 (6) 7,375 111 7,375 111
TRANSPORTATION: AIRLINES - 0.21%/0.21%
USAir, Inc., pass-through trust, Series 1993-A3, 1,500 1,440 1,500 1,431
10.375% 2013 (7)
TEXTILES & APPAREL - 0.20%/0.21%
WestPoint Stevens Inc. 7.875% 2005 1,500 1,365 1,500 1,421
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED) - 0.18%/0.19%
Chase Commercial Mortgage Securities Corp., 1,522 1,258 1,522 1,266
Series 1998-2, Class E, 6.39% 2030 (7)
ENERGY EQUIPMENT & SERVICES - 0.15%/0.15%
McDermott Inc. 9.375% 2002 1,000 999 1,000 997
REAL ESTATE INVESTMENT TRUST - 0.10%/0.10%
FelCor Suites LP 7.375% 2004 750 682 750 682
NON U.S. GOVERNMENTS & GOVERNMENTAL
AUTHORITIES - 1.61%/1.56%
United Mexican States Government Eurobonds:
Global, 11.375% 2016 2,250 2,551 2,250 2,477
Global, 11.50% 2026 500 595 500 582
Panama (Republic of):
Interest Reduction Bond, 3.75% 2014(1)(4) 3,000 2,355 3,000 2,228
8.875% 2027 250 211 250 208
Argentina (Republic of):
11.75% 2009 830 828 830 803
11.00% 2006 725 721 725 694
9.75% 2027 800 722 800 668
11.375% 2017 250 249 250 234
Philippines (Republic of):
8.875% 2008 1,750 1,715 1,750 1,722
9.875% 2019 500 496 500 510
Bulgaria (Republic of), Front-Loaded Interest 445 322 445 313
Reduction Bond, 2.75% 2012 (4)
Turkey (Republic of) 12.375% 2009 250 269 250 262
TOTAL BONDS & NOTES (cost: $623,539,000 545,656 543,573
and $622,182,000 respectively)
======== ========
Number of Number of
Shares or Shares or
Stocks (Common & Preferred) Principal Principal
- -------------------------------------------- Amount Amount
WIRELESS TELECOMMUNICATION SERVICES
- 5.16%/5.19%
Nextel Communications, Inc.:
Series E, 11.125% exchangeable preferred, 13,548 13,548 14,374 14,374
redeemable 2010 (2)(8)
Series D, 13.00% exchangeable preferred, 2,132 2,260 2,132 2,260
redeemable 2009 (2)(8)
McCaw International, Ltd. (owned by Nextel
Communications, Inc.) warrants, expire 2007 (1)(3)(8) 2,500 6 2,500 6
Dobson Communications Corp.(2)(8):
12.25% exchangeable preferred, redeemable 2008 4,660 4,660 4,519 4,700
12.25% senior exchangeable preferred, redeemable 2008 3,872 3,873 3,756 3,906
Crown Castle International Corp. 12.75% preferred 2010 7,369 7,627 7,142 7,431
Omnipoint Corp.(8) 14,893 1,797 14,893 1,206
Omnipoint Corp. 7.00% convertible preferred 8,000 1,336 8,000 1,160
Comunicacion Celular SA, Class B, warrants, 5,000 1 5,000 275
expire 2003 (Colombia)(1)(8)
Esat Telecom Group PLC, warrants, expire 2007 1,250 229 1,250 163
(Ireland) (1)(3)(8)
Conecel Holdings Ltd., Class B, warrants, 25,900 3 25,900 3
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.97%/2.25%
COLT Telecom Group (ADR) (United Kingdom)(8) 87,750 17,901 87,750 13,086
IXC Communications, Inc. (2)(8) 1,647 1,812 1,647 1,812
Viatel, Inc. (8) 11,371 610 11,371 478
KMC Telecom Holdings Inc., warrants, expire 2008 (1)(8 9,500 28 9,500 28
BROADCASTING & PUBLISHING - 2.10%/1.97%
ACME Communications, Inc. (8) 106,579 3,544 106,579 3,604
Cumulus Media Inc. 13.75% preferred 2009 (2) 2,732 3,074 2,732 3,033
Radio One, Inc., Class A (8) 33,700 3,100 37,500 2,370
Price Communications Corp. (8) 78,238 2,176 90,538 2,269
Clear Channel Communications, Inc. (8) 25,506 2,276 25,506 2,050
NTL Inc., warrants, expire 2008 1,425 188 1,425 132
(United Kingdom-Incorporated in USA) (1)(3)(8)
TVN Entertainment Corp., warrants, expire 2008 (1)(3)( 6,500 - 6,500 -
BANKING - 1.78%/1.81%
Chevy Chase Preferred Capital Corp. 10.375% 38,200 1,858 38,200 1,934
Fuji JGB Investment LLC, Series A, 9.87% 8,500 8,5008,500,000 8,575
noncumulative preferred (Japan)(1)
First Republic Capital Corp. 10.50% preferred (1) 2,000 1,830 2,000 1,925
BUSINESS SERVICES - 0.66%/0.63%
EarthWatch Inc.(2)(3)(8):
Series B, 7.00% convertible preferred 2009 896,976 3,000 869,976 3,000
Series C, 8.50% convertible preferred 2009 (1) 170,534 293 170,534 293
Verio Inc., warrants, expire 2004 (1)(8) 7,350 1195 7,350 935
Teletrac, Inc.(3)(8) 316,366 47 316,366 47
Teletrac, Inc., Class A, warrants, expire 2004 (3)(8) 116,490 12 116,490 12
MULTI-INDUSTRY - 0.47%/0.46%
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed
perpetual capital securities (Hong Kong)(1) 160,000 3,240 160,000 3,120
FOREST PRODUCTS & PAPER - 0.30%/0.30%
Packaging Corp. of America 12.375% preferred 2010 (2)( 18,516 2,037 18,517 2,027
ENERGY SOURCES - 0.05%/0.06%
Cross Timbers Oil Co. 40,000 362 40,000 408
FINANCIAL SERVICES - 0.03%/0.03%
Wilshire Financial Services Group, Inc. (8) 155,212 213 155,212 194
APPLIANCES & HOUSEHOLD DURABLES
- 0.00%/0.00%
Protection One Alarm Monitoring, Inc., warrants, 6,400 2 6,400 1
expire 2005 (1)(3)(8)
RECREATION OTHER CONSUMER PRODUCTS
- 0.00%/0.00%
V2 Music Holdings, warrants, expire 2008 7,900 - 7,900 -
(United Kingdom)(1)(8)
TEXTILES & APPAREL - 0.00%/0.00%
Tultex Corp., warrants, expire 2007 (3)(8) 203,005 - 203,005 -
---------- ----------
TOTAL STOCKS (cost: $66,790,000 92,638 86,817
and $61,768,000 respectively)
======== ========
Principal Principal
Amount Amount
Convertible Debentures (000) (000)
- -------------------------------------------- -------- -------- -------- --------
ELECTRONIC COMPONENTS - 0.36%/0.33%
Advanced Micro Devices, Inc. 6.00% 2005 2,400 2,448 2,400 2,268
MERCHANDISING - 0.25%/0.25%
Sunglass Hut International, Inc. 5.25% 2003 2,125 1,711 2,125 1,710
WHOLESALE & INTERNATIONAL TRADE - 0.23%/0.23%
Ingram Micro Inc. 0% 2018 4,905 1,594 4,905 1,576
WIRELESS TELECOMMUNICATION SERVICES - 0.13%/0.13%
Piltel International Holding Corp. 1.75% 2006 1,875 909 1,875 900
HEALTH CARE PROVIDERS & SERVICES - 0.01%/0.01%
Integrated Health Services, Inc. 5.75% 2001 3,500 70 3,500 70
---------- ----------
TOTAL CONVERTIBLE DEBENTURES 6,732 6,524
(cost: $10,515,000 and $10,488,000 respectively) ---------- ----------
Miscellaneous - 0.26%/0.00%
Other equity securities in initial period of acquisition 1,748 23
---------- ----------
TOTAL EQUITY SECURITIES (cost: $77,305,000 101,118 93,364
and $76,954,000 respectively)
---------- ----------
Short-Term Securities
- --------------------------------------------
CORPORATE SHORT-TERM NOTES - 4.14%/4.04%
PACCAR Financial Corp. 5.27%-5.28% - - 7,800 7,790
due 12/8-12/10/1999
Bell Atlantic Network Funding Corp. 5.30% - - 6,600 6,587
due 12/13/1999
Halliburton Co. 5.27% due 12/21/1999 - - 5,400 5,383
H.J. Heinz Co. 5.28% due 12/2/1999 - - 5,000 4,999
Associates Corp. of North America 5.71% - - 2,900 2,900
due 12/1/1999
Pfizer Inc 5.87% due 2/7/2000 (1) 9,400 9,342 - -
Ford Motor Credit Co. 6.02% due 1/4/2000 5,000 4,996 - -
CIT Group Holdings, Inc. 4.75% due 1/3/2000 4,500 4,498 - -
Bell Atlantic Network Funding Corp. 6.05% 4,200 4,185 - -
due 1/21/2000
USAA Capital Corp 6.03% due 1/28/2000 4,100 4,080 - -
Gillette Co. 5.85% due 1/10/2000 (1) 1,300 1,298 - -
FEDERAL AGENCY DISCOUNT NOTES - 0.00%/1.21%
Freddie Mac 5.36% due 12/9/1999 - - 8,300 8,289
TOTAL SHORT-TERM SECURITIES (cost: 28,399 35,948
$28,400,000 and $35,948,000 respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 675,173 672,885
$729,244,000 and $735,084,000 respectively)
Excess of payables cash and receivables 10,153 11,192
NET ASSETS 685,326 684,077
1-Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
2-Payment in kind.The issuer has the option
of paying additional securities in lieu of cash.
3-Valued under procedures established by the
Board of Trustees.
4-Coupon rate may change periodically.
5-Step bond-coupon; rate will increase at a later date.
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-Non-income-producing security
ADR=American Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
U.S. Government Guaranteed/ AAA-Rated Securitites Fund
Investment Portfolio
<S> <C> <C> <C> <C>
December 31 November 30
- ------------------------------------------------ -------- -------- --------
PRIVATE MORTGAGE & ASSET-BACKED SECURITIES 37.52 37.47
FEDERAL AGENCY MORTGAGE-RELATED SECURITIES 32.93 33.94
U.S. TREASURY OBLIGATIONS 16.50 17.83
OTHER FEDERAL OBLIGATIONS 7.08 5.67
OTHER BONDS 2.60 2.59
CASH & EQUIVALENTS 3.37 2.50
- ------------------------------------------------ -------- -------- --------
December 31 November 30
Principal Market Principal Market
Amount Value Amount Value
Bonds & Notes (000) (000) (000) (000)
- -------------------------------------------- -------- -------- -------- --------
Federal Agency Obligations: Mortgage
Pass-Throughs (1) - 29.46% / 30.50%
Government National Mortgage Assn.:
6.00% 2013-2029 $25,423 $23,358 $26,237 $24,457
7.00% 2023-2029 16,196 15,68 16,327 15,979
8.00% 2023-2027 9,500 9,59 9,645 9,802
7.50% 2022-2029 7,891 7,81 6,960 6,955
6.50% 2028-2029 5,815 5,45 5,842 5,557
8.50% 2021-2023 4,723 4,88 4,757 4,937
9.50% 2019-2021 2,413 2,55 2,417 2,570
10.00% 2019 1,378 1,48 1,407 1,523
5.50% 2013 974 90 979 920
9.00% 2009-2016 676 71 678 718
10.50% 2019 60 6 60 66
Fannie Mae:
6.00% 2013-2029 7,320 6,87 11,310 10,768
6.50% 2013-2028 9,190 8,84 9,252 8,983
7.00% 2012-2028 6,040 5,89 6,091 5,997
8.50% 2023-2027 4,543 4,67 4,633 4,789
7.50% 2029-2039 3,992 3,90 4,551 4,447
8.00% 2024 3,795 3,84 3,805 3,872
13.00% 2015 1,836 2,09 1,886 2,183
10.00% 2018 1,839 1,96 1,873 2,009
12.00% 2015-2019 1,719 1,92 1,749 1,965
5.50% 2014 1,892 1,75 1,909 1,787
9.00% 2011-2025 1,113 1,15 1,151 1,202
Freddie Mac:
6.00% 2014-2029 12,799 12,02 14,214 13,473
8.25% 2008-2009 2,157 2,18 2,227 2,270
5.50% 2013 1,832 1,70 1,840 1,723
7.00% 2008 1,361 1,35 1,389 1,388
8.00% 2012 1,187 1,20 1,235 1,259
8.50% 2018-2027 1,086 1,11 1,111 1,143
11.00% 2018 482 52 492 539
9.50% 2016 91 9 91 95
12.00% 2016 1 1 1
Freddie Mac Gold 9.00% 2022-2028 2,254 2,34 2,349 2,453
Collateralized Mortgage Obligations (Privately
Originated) (1) - 22.70% / 22.55%
Morgan Stanley Capital I, Inc.:
Series 1998-HF2, Class A-2, 6.48% 2030 7,500 7,05 7,500 7,155
Series 1997-HF1, Class A-1, 6.86% 2006 (2) 4,168 4,12 4,187 4,173
Series 1999-FNV1, Class A-2, 6.53% 2031 3,000 2,80 3,000 2,844
Series 1998-HF2, Class A-1, 6.01% 2030 2,783 2,64 2,801 2,687
Series 1998-WF2, Class A-1, 6.34% 2030 2,714 2,62 2,732 2,663
Series 1998-WF1, Class A-1, 6.25% 2030 2,383 2,31 2,394 2,339
Ocwen Residential MBS Corp., Series 1998-R1, 8,723 8,24 8,858 8,375
Class AWC, 3.985% / 3.213% 2040 (2,3)
GE Capital Mortgage Services, Inc. Series 1994-15, 8,000 7,20 8,000 7,282
Class A-10, 6.00% 2009
Nomura Asset Securities Corp., Series 1998-D6, 6,993 6,72 7,050 6,827
Class A-A1, 6.28% 2030
Deutsche Mortgage & Asset Receiving Corp., 6,698 6,43 6,789 6,576
Series 1998-C1, Class A-1, 6.22% 2007
Merrill Lynch Mortgage Investors, Inc.:
Series 1998-C3, Class A-1, 5.65% 2030 3,285 3,09 3,305 3,141
Series 1995-C3, Class A-2, 6.949% / 6.755% 2025 (3) 1,500 1,48 1,500 1,488
Series 1995-C3, Class A-3, 7.189% / 6.995% 2025 (3) 1,500 1,47 1,500 1,487
Structured Asset Securities Corp.:
Series 1998-RF2, Class A, 8.549% / 8.55% 2027 (2,3) 2,823 2,88 2,865 2,948
Series 1998-RF1, Class A, 8.676% / 8.68% 2027 (2,3) 2,649 2,72 2,690 2,776
Mortgage Capital Funding, Inc., Series 1998-MC1, 5,782 5,60 5,820 5,686
Class A-1, 6.42% 2030
Chase Commercial Mortgage Securities Corp.:
Series 1998-2, Class A-2, 6.39% 2008 3,000 2,79 3,000 2,836
Series 1998-1, Class A-1, 6.34% 2030 2,681 2,60 2,700 2,644
CS First Boston Mortgage Securities Corp., 5,576 5,38 5,617 5,461
Series 1998-C1, Class A-1A, 6.26% 2040
Security National Mortgage Loan Trust, Series 5,000 4,79 5,000 4,821
1999-1, Class A-2, 8.353% 2030 (2)
Commercial Mortgage Acceptance Corp.:
Series 1998-C1, Class A-1, 6.23% 2007 2,245 2,16 2,259 2,191
Series 1998-C2, Class A-1, 5.80% 2006 1,353 1,28 1,363 1,306
AMRESCO Commercial Mortgage Funding I Corp., 3,307 3,25 3,320 3,292
Series 1997-C1, Class A-1, 6.73% 2029
J.P. Morgan Commercial Mortgage Finance Corp., 3,000 2,97 3,000 2,991
Series 1995-C1, Class A-2, 7.373% / 7.413% 2010 (3)
Nationsbanc Montgomery Funding Corp., 2,697 2,53 2,728 2,579
Series 1998-5, Class A-1, 6.00% 2013
First Nationwide Trust, Series 1999-2, Class 2,037 1,90 2,048 1,925
IPP-A-1, 6.50% 2029
Freddie Mac Loan Receivables Trust, Series 2,000 1,84 2,000 1,843
1998-A, Class A-3, 6.69% 2020 (2)
LB Commerical Conduit Mortgage Trust, Series 1,700 1,66 1,713 1,684
1998-C1, Class A-1, 6.33% 2030
GMAC Commercial Mortgage Securities, Inc., 1,500 1,42 1,500 1,465
Series 1997-C1, Class A-3, 6.869% 2007
DLJ Mortgage Acceptance Corp., 1,373 1,36 1,386 1,389
Series 1996-CF1, Class A-1A, 7.28% 2028 (2)
DLJ Commercial Mortgage Corp., 1,250 1,15 1,250 1,171
Series 1998-CF2, Class A-1B, 6.24% 2031
Norwest Asset Securities Corp., Series 1998-31, 1,143 1,08 1,150 1,095
Class A-1, 6.25% 2014
Ryland Acceptance Corp., Series 88, Class E, 708 70 708 712
7.95% 2019
U.S. Treasury Obligations - 16.50% / 17.83%
8.875% 2017 19,790 23,91 19,790 24,370
10.375% 2009 16,000 18,40 17,500 20,379
5.75% 2003 7,160 7,01 7,560 7,468
10.75% 2003 6,500 7,34 6,500 7,408
6.625% 2001 3,000 3,01 4,500 4,542
7.875% 2021 3,500 3,91 3,500 4,004
7.125% 2023 3,425 3,56 3,425 3,652
7.25% 2004 - - 3,500 3,644
6.125% 2007 3,650 3,55 3,650 3,612
12.00% 2013 2,000 2,67 2,000 2,717
8.75% 2017 1,400 1,67 1,400 1,704
11.625% 2002 1,000 1,13 1,000 1,145
5.875% 2002 125 12 125 124
Strip Principal, 0% 2027 5,780 97 2,880 499
Asset-Backed Obligations (1) - 14.82% / 14.92%
Green Tree Finacial Corp.:
Series 1995-9, Class A-5, 6.80% 2027 5,000 4,97 5,000 4,983
Series 1996-7, Class A-6, 7.65% 2027 3,000 2,99 3,000 3,021
Series 1997-6, Class A-7, 7.14% 2029 2,500 2,46 2,500 2,483
Series 1997-6, Class A-6, 6.90% 2029 2,500 2,47 2,500 2,481
Series 1996-10, Class A-5, 6.83% 2028 2,500 2,45 2,500 2,448
Series 1999-2, Class A-2, 5.84% 2030 2,500 2,43 2,500 2,445
Series 1995-3, Class A-5, 7.30% 2025 2,050 2,05 2,050 2,056
NPF:2
XII, Inc., Series 1999-2, Class A, 7.05% 2003 11,875 11,67 11,875 11,706
VI, Inc., Series 1999-1, Class A, 6.25% 2003 1,000 97 1,000 978
PP&L Transistion Bond Co. LLC, Series 1999-1, 8,750 8,71 10,250 10,345
Class A-8, 7.15% 2008
EQCC Home Equity Loan Trust, Series 1999-2, 5,000 4,87 5,000 4,886
Class A-3F, 6.347% 2022
Puerto Rico Public Financing Corp., Series 4,774 4,63 4,774 4,654
1999-1, Class A, AMBAC Insured, 6.15% 2008
Chase Credit Card Master Trust, Series 1997-5, 4,000 3,90 4,000 3,931
Class A, 6.194% 2005
Green Tree Recreational, Equipment & Consumer 3,000 2,95 3,000 2,964
Trust, Series 1999-A, Class A-6, 6.84% 2029
Triad Auto Receivables Owner Trust, Series 1999-1, 3,000 2,93 3,000 2,942
Class A-2, FSA Insured, 6.09% 2005
ComEd Transitional Funding Trust:
Series 1998-1, Class A-5, 5.44% 2005 1,600 1,50 1,600 1,518
Series 1998-1, Class A-7, 5.74% 2008 1,500 1,35 1,500 1,374
Standard Credit Card Master Trust I, 2,500 2,55 2,500 2,565
Series 1994-4, Class A, 8.25% 2003
PECO Energy Transition Trust, Series 1999-1 2,000 1,84 2,000 1,871
Class A-7, 6.13% 2009
Citibank Credit Card Master Trust I, Series 1998-9, 1,800 1,68 1,800 1,704
Class A, 5.30% 2006
Federal Agency Obligations - Other - 7.08% / 5.67%
Fannie Mae:
6.00% 2008 9,850 9,22 9,850 9,367
5.25% 2009 3,000 2,64 3,000 2,689
Freddie Mac:
5.125% 2008 7,500 6,57 7,500 6,677
5.75% 2008 3,500 3,22 3,500 3,274
6.25% 2004 3,500 3,42 - -
Tennessee Valley Authority, Series G, 5.375% 2008 3,250 2,88 3,250 2,937
Federal Home Loan Banks:
5.125% 2003 4,700 4,44 1,500 1,429
5.625% 2001 750 74 750 745
Collateralized Mortgage Obligations (Federal
Agencies) (1) - 3.47% / 3.44%
Freddie Mac:
Series 1567, Class A, 5.333% / 6,463 6,28 6,513 6,338
5.373% 2023 (3)
Series 1716, Class A, 6.50% 2009 2,250 2,15 2,250 2,192
Series 1507, Class JZ, 7.00% 2023 633 57 630 583
Series 2030, Class F, 6.96% / 5.90% 2028 (3) 245 24 248 250
Series 83-B, Class B-3, 12.50% 2013 200 21 200 218
Fannie Mae:
Series 1997-M6, Class ZA, 6.85% 2026 5,864 4,88 5,831 4,942
Series 1997-28, Class C, 7.00% 2027 1,000 95 1,000 962
Series 1998-M6, Class A-2, 6.32% 2008 1,000 92 1,000 944
Developmental Authorities - 2.38% / 2.38%
Inter-American Development Bank 8.875% 2009 10,000 11,17 10,000 11,374
Foreign Governmental Authorities - 0.22% / 0.21%
KfW International Finance Inc. 7.625% 2004 1,000 1,01 1,000 1,025
---------- ----------
TOTAL BONDS & NOTES (cost: $468,371,000 452,731 466,251
and $477,919,000, respectively)
---------- ----------
Short Term Securities
Corporate Short-Term Notes - 2.62% / 0.88%
- --------------------------------------------
Associates Corp. of North America 5.71% due 12/1/1999 - - 4,200 4,199
Associates First Capital Corp. 4.00% due 1/3/2000 6,400 6,39 - -
Ford Motor Credit Co. 6.02% due 1/4/2000 5,900 5,89 - -
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: 12,294 4,199
$12,294,000 and $4,199,000 respectively)
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 465,02 470,450
$480,665,000 and $ 482,118,000 respectivley)
Net cash, receivables and payables 3,529 7,729
---------- ----------
NET ASSETS $468,554 $478,179
---------- ----------
---------- ----------
(1)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.
(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.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series Cash Management Fund
Investment Portfolio, December 31 and November 30, 1999
<S> <C> <C> <C> <C>
December December November November
3 3 30 30
Principa Market Principa Market
Amount Value Amount Value
Short-Term Securities (000) (000) (000) (000)
- -------------------------------------------- -------- -------- -------- --------
Corporate Short-Term Notes - 72.99%/72.53%
Motiva Enterprises LLC 5.85% due 1/19/2000 9,80 $ 9,770 9,800 $ 9,720
AT&T Corp. 5.25% due 12/17/1999 9,500 9,476
Merck & Co., Inc. 5.72% due 1/31/2000 9,20 9,15 9,200 9,108
Bell Atlantic Network Funding Corp. 5.27%-5.92% 9,00 8,96 9,000 8,992
due 12/6/1999-1/25/2000
Duke Energy Corp. 5.28% due 12/7/1999 9,000 8,991
Exxon Asset Management Co. 5.81% due 1/5/2000 (1) 9,00 8,99 9,000 8,948
Motorola, Inc. 5.81% due 1/18/2000 9,00 8,97 9,000 8,929
Vermont American Corp. 5.83% due 1/18/2000 (1) 9,00 8,97 9,000 8,929
International Lease Finance Corp. 5.76% due 2/1/2000 9,00 8,95 9,000 8,908
Park Avenue Receivables Corp. 5.97% due 1/10/2000 (1 8,86 8,84 8,861 8,801
CIT Group Holdings, Inc. 5.29%-5.88% due 8,70 8,66 8,700 8,696
12/3/1999-1/28/2000
SBC Communications Inc. 5.82% due 1/18/2000 (1) 8,70 8,67 8,700 8,631
Alcoa Inc. 5.30% due 12/1/1999 8,500 8,499
Coca-Cola Co. 5.77% due 1/13/2000 8,50 8,48 8,500 8,440
Albertson's, Inc. 5.85% due 1/18/2000 (1) 8,50 8,47 8,500 8,432
A.I. Credit Corp. 5.81%-5.82% due 1/20/2000 8,50 8,47 8,500 8,430
Hershey Foods Corp. 5.28% due 12/9/1999 8,300 8,289
Ford Motor Credit Co. 5.32% due 12/8/1999 8,200 8,190
E.I. du Pont de Nemours and Co. 5.29% due 12/3/1999 8,100 8,096
National Rural Utilities Cooperative Finance Corp. 8,000 7,985
!5.30% due 12/13/1999
Halliburton Co. 5.27% due 12/22/1999 8,000 7,974
Procter & Gamble Co. 5.82% due 1/10/2000 8,00 7,98 8,000 7,947
Chevron USA Inc. 5.80% due 1/11/2000 8,00 7,98 8,000 7,946
American General Finance Corp. 5.84% due 1/18/2000 8,00 7,97 8,000 7,936
Household Finance Corp. 5.28%-5.94% due 6,80 6,76 7,500 7,493
12/6/1999-2/2/2000
Kimberly-Clark Corp. 5.81% due 1/24/2000 (1) 7,50 7,47 7,500 7,433
Harvard University 5.30% due 12/7/1999 7,200 7,193
IBM Credit Corp. 5.30% due 12/10/1999 7,000 6,990
H.J. Heinz Co. 5.27%-5.83% due 12/3/1999-1/25/2000 9,00 8,96 6,000 5,997
Monsanto Co. 5.93% due 1/7/2000 (1) 6,00 5,99 6,000 5,963
Corporate Asset Funding Co. Inc. 5.40% due 5,000 4,990
12/14/1999 (1)
Wal-Mart Stores, Inc. 5.47% due 12/21/1999 (1) 4,600 4,585
Pfizer Inc 5.87% due 2/9/2000 (1) 10,00 9,935
Associates First Capital Corp. 4.00% due 1/3/2000 9,57 9,567
John Hancock Capital Corp. 5.90% due 1/4/2000 (1) 9,00 8,994
BellSouth Capital Funding Corp. 5.87% due 2/4/2000 ( 9,00 8,949
Schering Corp. 6.00% due 2/8/2000 9,00 8,941
Anheuser-Busch Companies, Inc. 5.68% due 2/3/2000 8,50 8,453
Gillette Co. 5.85% due 1/14/2000 (1) 8,50 8,481
Baltimore Gas and Electric Co. 5.88% due 1/14/2000 8,19 8,181
Minnesota Mining and Manufacturing Co. 5.80% 8,20 8,172
due 1/21/2000
American Express Credit Corp. 5.94% due 1/27/2000 7,80 7,765
Fortune Brands Inc. 6.25% due 1/26/2000 5,80 5,774
Avon Capital Corp. 6.70% due 1/6/2000 (1) 4,60 4,595
Federal Agency Discount Notes - 27.23%/27.71%
Fannie Mae 5.21%-5.66% due 12/2/1999-2/9/2000 21,00 20,89 44,900 44,804
Freddie Mac 5.19%-5.82% due 12/1/1999-2/24/2000 40,30 40,05 39,945 39,865
International Bank for Reconstruction and Developmen 27,94 27,87 10,300 10,220
!5.48%-5.80% due 1/12-1/21/2000
Federal Home Loan Banks 5.36%-5.82% due 10,59 10,54 3,300 3,295
12/10/1999-2/18/2000
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: 365,700 355,121
$365,701,000 and $355,124,000 respectively)
Net cash, receivables and payables (801) (865)
---------- ----------
NET ASSETS 364,899 354,256
========== ==========
(1) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
at December 31, 1999 and November 30, 1999
(dollars in thousands, except per-share
data)
<S> <C> <C> <C> <C>
Global Small
Global Capitalization
Growth Fund Fund
---------- ---------- ---------- ----------
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
ASSETS:
Investment securities at market $725,056 $602,020 $288,428 $240,162
Cash 101 29 3 42
Receivables for-
Sales of investments 40 1,73
Sales of fund's shares 1,076 305 538 438
Open forward currency
contracts - net -
Dividends and interest 272 1,305 70 200
---------- ---------- ---------- ----------
726,50 604,061 289,0 242,576
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 16,081 4,067
Repurchases of fund's shares 6
Management services 376 314 177 145
Distribution fees - Class 2 7 6 1
Other expenses 27 28 11 9
---------- ---------- ---------- ----------
47 16,544 2 4,238
NET ASSETS AT ---------- ---------- ---------- ----------
December 31, 1999 and November 30, 1999
(Total $26,310,890 and $24,065,679,
respectively) 726,02 $587,517 288,8 $238,338
=========== =========== =========== ===========
Investment securities at cost $460,362 $440,187 210,0 $182,722
=========== =========== =========== ===========
Class 1 (unlimited shares authorized):
Net assets (Total $22,399,176 and
$20,686,307, respectively) $327,137 $271,914 $178,020 $150,240
Shares of beneficial interest
outstanding 15,274,162 14,316,682 10,248,227 8,756,127
Net asset value per share $21.42 $18.99 $17.37 $17.16
Class 2 (unlimited shares authorized):
Net assets (Total $3,911,714 and
$3,379,372, respectively) $398,890 $315,603 $110,782 $88,098
Shares of beneficial interest
outstanding 18,635,121 16,625,731 6,381,225 5,139,964
Net asset value per share $21.41 $18.98 $17.36 $17.14
Growth Fund International Fund
---------- ---------- ---------- ----------
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
ASSETS:
Investment securities at market $9,374,786 $8,262,639 $4,502,726 $3,831,636
Cash 142 324 - 982
Receivables for-
Sales of investments - 4,63 - 6,32
Sales of fund's shares 4,057 1,891 2,060 469
Open forward currency
contracts - net - - -
Dividends and interest 1,473 1,995 3,426 3,495
---------- ---------- ---------- ----------
9,380,45 8,271,482 4,508,2 3,842,908
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments - 56,900 - 2,931
Repurchases of fund's shares 4,47 4,63 1,9 58
Management services 2,723 2,506 1,874 1,622
Distribution fees - Class 2 21 18 5
Other expenses 270 276 379 431
---------- ---------- ---------- ----------
7,68 64,502 4,2 5,628
NET ASSETS AT ---------- ---------- ---------- ----------
December 31, 1999 and November 30, 1999
(Total $26,310,890 and $24,065,679,
respectively) 9,372,77 $8,206,980 4,503,9 $3,837,280
=========== =========== =========== ===========
Investment securities at cost 5,026,39 $5,033,490 2,292,1 $2,244,736
=========== =========== =========== ===========
Class 1 (unlimited shares authorized):
Net assets (Total $22,399,176 and
$20,686,307, respectively) $8,224,215 $7,270,253 $4,112,613 $3,526,134
Shares of beneficial interest
outstanding 116,457,977 100,808,884 153,817,355 140,588,653
Net asset value per share $70.62 $72.12 $26.74 $25.08
Class 2 (unlimited shares authorized):
Net assets (Total $3,911,714 and
$3,379,372, respectively) $1,148,559 $936,727 $391,322 $311,146
Shares of beneficial interest
outstanding 16,275,900 13,003,113 14,638,924 12,412,402
Net asset value per share $70.57 $72.04 $26.73 $25.07
New World Fund Growth-Income Fund
---------- ---------- ---------- ----------
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
ASSETS:
Investment securities at market $82,823 $66,926 $7,828,805 $7,656,736
Cash 88 227 169 317
Receivables for-
Sales of investments - 23,16
Sales of fund's shares 379 133 2,367 1,115
Open forward currency
contracts - net - -
Dividends and interest 191 194 8,708 10,558
---------- ---------- ---------- ----------
83,48 67,480 7,840,0 7,691,895
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 2,344 - 38,495
Repurchases of fund's shares 2,5 4,62
Management services 54 42 2,192 2,149
Distribution fees - Class 2 2 22
Other expenses 5 3 277 266
---------- ---------- ---------- ----------
6 2,397 5,2 45,756
NET ASSETS AT ---------- ---------- ---------- ----------
December 31, 1999 and November 30, 1999
(Total $26,310,890 and $24,065,679,
respectively) $83,415 $65,083 7,834,8 $7,646,139
=========== =========== =========== ===========
Investment securities at cost 71,653 $63,481 6,715,4 $6,660,331
=========== =========== =========== ===========
Class 1 (unlimited shares authorized):
Net assets (Total $22,399,176 and
$20,686,307, respectively) $45,229 $36,771 $6,631,972 $6,537,371
Shares of beneficial interest
outstanding 3,843,422 3,482,087 200,490,319 168,938,996
Net asset value per share $11.77 $10.56 $33.08 $38.70
Class 2 (unlimited shares authorized):
Net assets (Total $3,911,714 and
$3,379,372, respectively) $38,186 $28,312 $1,202,832 $1,108,768
Shares of beneficial interest
outstanding 3,245,506 2,682,522 36,371,662 28,670,703
Net asset value per share $11.77 $10.55 $33.07 $38.67
Asset
Allocation Fund Bond Fund
---------- ---------- ---------- ----------
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
ASSETS:
Investment securities at market $1,720,072 $1,714,981 $250,686 $248,950
Cash 175 1,563
Receivables for-
Sales of investments 13 52 68
Sales of fund's shares 664 112 286 127
Open forward currency
contracts - net - - -
Dividends and interest 8,538 8,606 3,681 3,986
---------- ---------- ---------- ----------
1,729,579 1,725,790 254,6 253,744
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 9,407
Repurchases of fund's shares 70 1,07 2 27
Management services 623 608 111 106
Distribution fees - Class 2 7 6 1
Other expenses 62 127 48 33
---------- ---------- ---------- ----------
1,459 11,277 4 427
NET ASSETS AT ---------- ---------- ---------- ----------
December 31, 1999 and November 30, 1999
(Total $26,310,890 and $24,065,679,
respectively) $1,728,120 $1,714,513 254,2 $253,317
=========== =========== =========== ===========
Investment securities at cost $1,463,070 $1,479,346 262,7 $261,075
=========== =========== =========== ===========
Class 1 (unlimited shares authorized):
Net assets (Total $22,399,176 and
$20,686,307, respectively) $1,387,375 $1,393,837 $169,037 $173,264
Shares of beneficial interest
outstanding 92,077,466 86,931,205 17,349,968 17,577,655
Net asset value per share $15.07 $16.03 $9.74 $9.86
Class 2 (unlimited shares authorized):
Net assets (Total $3,911,714 and
$3,379,372, respectively) $340,745 $320,676 $85,197 $80,053
Shares of beneficial interest
outstanding 22,619,588 20,012,529 8,746,371 8,126,181
Net asset value per share $15.06 $16.02 $9.74 $9.85
U.S. Government/
High-Yield AAA-Rated
Bond Fund Securities Fund
---------- ---------- ---------- ----------
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
ASSETS:
Investment securities at market $675,173 $672,885 $465,025 $470,450
Cash 141 110 281
Receivables for-
Sales of investments 35 1,35 5,07
Sales of fund's shares 46 112 11 53
Open forward currency
contracts - net 18 40 - -
Dividends and interest 9,676 10,841 3,908 3,870
---------- ---------- ---------- ----------
685,99 685,597 469,1 479,725
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments - 1,047
Repurchases of fund's shares 32 85 3 26
Management services 291 281 204 202
Distribution fees - Class 2 2 1
Other expenses 33 365 26 25
---------- ---------- ---------- ----------
66 1,520 5 1,546
NET ASSETS AT ---------- ---------- ---------- ----------
December 31, 1999 and November 30, 1999
(Total $26,310,890 and $24,065,679,
respectively) 685,32 $684,077 $468,554 $478,179
=========== =========== =========== ===========
Investment securities at cost 729,24 $735,084 $480,665 $482,118
=========== =========== =========== ===========
Class 1 (unlimited shares authorized):
Net assets (Total $22,399,176 and
$20,686,307, respectively) $586,168 $588,997 $420,579 $431,383
Shares of beneficial interest
outstanding 45,976,558 45,993,928 39,812,295 40,001,057
Net asset value per share $12.75 $12.81 $10.56 $10.78
Class 2 (unlimited shares authorized):
Net assets (Total $3,911,714 and
$3,379,372, respectively) $99,158 $95,080 $47,975 $46,796
Shares of beneficial interest
outstanding 7,779,063 7,429,225 4,542,189 4,341,910
Net asset value per share $12.75 $12.80 $10.56 $10.78
Cash
Management Fund
---------- ----------
December 31, November 30,
1999 1999
- ---------------------------------- ----------- -----------
ASSETS:
Investment securities at market $365,700 $355,121
Cash 10 180
Receivables for-
Sales of investments -
Sales of fund's shares 11 141
Open forward currency
contracts - net -
Dividends and interest -
---------- ----------
365,721 355,442
LIABILITIES: ---------- ----------
Payables for-
Purchases of investments 1,031
Repurchases of fund's shares 66 -
Management services 134 132
Distribution fees - Class 2 1 10
Other expenses 13 13
---------- ----------
822 1,186
NET ASSETS AT ---------- ----------
December 31, 1999 and November 30, 1999
(Total $26,310,890 and $24,065,679,
respectively) $364,899 $354,256
=========== ===========
Investment securities at cost $365,701 $355,124
=========== ===========
Class 1 (unlimited shares authorized):
Net assets (Total $22,399,176 and
$20,686,307, respectively) $316,831 $306,143
Shares of beneficial interest
outstanding 28,679,142 27,506,247
Net asset value per share $11.05 $11.13
Class 2 (unlimited shares authorized):
Net assets (Total $3,911,714 and
$3,379,372, respectively) $48,068 $48,113
Shares of beneficial interest
outstanding 4,352,002 4,325,590
Net asset value per share $11.04 $11.12
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
Statement of Operations
for the one month period
ended December 31, 1999 and
the year ended November 30, 1999
(dollars in thousands)
<S> <C> <C> <C> <C>
Global Small
Global Growth Capitalization
Fund Fund
---------------- --------------------------------------------------
Period ended Year ended Period ended Year ended
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
INVESTMENT INCOME (LOSS:)
Income:
Dividends $556 $4,057 $60 $970
Interest 267 2,668 129 816
---------- ---------- ---------- ----------
8 6,725 189 1,786
---------- ---------- ---------- ----------
Expenses:
Management services fee 376 2,672 176 1,054
Distribution fees - Class 2 75 484 21 105
Reports to shareholders 13 - 5
Registration statement and
prospectus 7 - 3
Postage, stationery and
supplies 2 3 1 1
Trustees' fees 2 4 1 1
Auditing and legal fees 5 3 2 1
Custodian fee 14 82 8 23
Taxes other than federal
income tax 4 1
Other expenses 4 4
---------- ---------- ---------- ----------
4 3,276 209 1,198
---------- ---------- ---------- ----------
Net investment income (loss) 3 3,449 (20) 588
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 7,9 28,893 8,25 24,832
---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 102,879 136,393 20,900 61,148
Net change in unrealized appreciation
(depreciation) on open forward - - -
currency contracts
---------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) 102,8 136,393 20,900 61,148
---------- ---------- ---------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 110,8 165,286 29,152 85,980
---------- ---------- ---------- ----------
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 111,2 $168,735 $29,132 $86,568
========= ========= ========= =========
International
Growth Fund Fund
---------------- --------------------------------------------------
Period ended Year ended Period ended Year ended
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
INVESTMENT INCOME (LOSS:)
Income:
Dividends $1,512 $19,665 $2,172 $45,571
Interest 2,228 20,676 1,270 9,417
---------- ---------- ---------- ----------
3,740 40,341 3,44 54,988
---------- ---------- ---------- ----------
Expenses:
Management services fee 2,723 26,451 1,874 17,107
Distribution fees - Class 2 218 1,417 74 470
Reports to shareholders 11 241 5 107
Registration statement and
prospectus 89 - 38
Postage, stationery and
supplies 29 70 14 31
Trustees' fees 34 69 16 32
Auditing and legal fees 63 67 29 35
Custodian fee 40 269 138 1,415
Taxes other than federal
income tax 86 - 64
Other expenses 9 48 4 54
---------- ---------- ---------- ----------
3,127 28,807 2,15 19,353
---------- ---------- ---------- ----------
Net investment income (loss) 613 11,534 1,28 35,635
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 65,111 1,261,163 70,792 419,919
---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 1,119,232 1,604,675 623,662 971,987
Net change in unrealized appreciation
(depreciation) on open forward - - -
currency contracts
---------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) 1,119,232 1,604,675 623,66 971,987
---------- ---------- ---------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 1,184,343 2,865,838 694,45 1,391,906
---------- ---------- ---------- ----------
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,184,956 $2,877,372 695,74 $1,427,541
========= ========= ========= =========
Growth-Income
New World Fund Fund
---------------- --------------------------------------------------
Period ended Period ended Period ended Year ended
December 31, November 30, December 31, November 30,
1999 1999* 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
INVESTMENT INCOME (LOSS:)
Income:
Dividends $ 46 $ 134 $11,556 $113,635
Interest 148 419 4,955 48,424
---------- ---------- ---------- ----------
1 553 16,51 162,059
---------- ---------- ---------- ----------
Expenses:
Management services fee 54 154 2,192 26,220
Distribution fees - Class 2 7 17 241 2,063
Reports to shareholders 1 11 266
Registration statement and
prospectus 2 - 92
Postage, stationery and
supplies 27 84
Trustees' fees 31 82
Auditing and legal fees 58 85
Custodian fee 7 12 143
Taxes other than federal
income tax - 91
Other expenses 10 53
---------- ---------- ---------- ----------
181 2,58 29,179
---------- ---------- ---------- ----------
Net investment income (loss) 1 372 13,92 132,880
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 2 9 112,696 1,254,871
---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 7,725 3,445 116,969 (469,846)
Net change in unrealized appreciation
(depreciation) on open forward - - - -
currency contracts
---------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) 7,7 3,445 116,96 (469,846)
---------- ---------- ---------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 7,9 3,454 229,66 785,025
---------- ---------- ---------- ----------
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,125 $3,826 243,59 $917,905
========= ========= ========= =========
Asset
Allocation Fund Bond Fund
---------------- --------------------------------------------------
Period ended Year ended Period ended Year ended
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
INVESTMENT INCOME (LOSS:)
Income:
Dividends $1,965 $19,852 $37 $316
Interest 4,074 48,017 1,718 18,173
---------- ---------- ---------- ----------
6,0 67,869 1,75 18,489
---------- ---------- ---------- ----------
Expenses:
Management services fee 623 7,418 111 1,228
Distribution fees - Class 2 70 608 18 149
Reports to shareholders 2 60 8
Registration statement and
prospectus 23 3
Postage, stationery and
supplies 6 19 1 3
Trustees' fees 7 19 1 2
Auditing and legal fees 13 19 2 3
Custodian fee 3 40 1 12
Taxes other than federal
income tax 20 3
Other expenses 2 14 2
---------- ---------- ---------- ----------
7 8,240 13 1,413
---------- ---------- ---------- ----------
Net investment income (loss) 5,3 59,629 1,62 17,076
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) (2,150) 108,464 (155) (1,349)
---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 21,367 (42,237) 50 (10,317)
Net change in unrealized appreciation
(depreciation) on open forward - - (19)
currency contracts
---------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) 21,3 (42,237) 5 (10,336)
---------- ---------- ---------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 19,2 66,227 (10 (11,685)
---------- ---------- ---------- ----------
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 24,5 $125,856 1,51 $5,391
========= ========= ========= =========
U.S. Government/
High-Yield AAA-Rated
Bond Fund Securites Fund
-------------------------------------------------------------------
Period ended Year ended Period ended Year ended
December 31, November 30, December 31, November 30,
1999 1999 1999 1999
- ---------------------------------- ----------- ----------- ----------- -----------
INVESTMENT INCOME (LOSS:)
Income:
Dividends $67 $836 - -
Interest 5,645 70,024 $2,700 $34,874
---------- ---------- ---------- ----------
5,7 70,860 2,70 34,874
---------- ---------- ---------- ----------
Expenses:
Management services fee 291 3,651 204 2,681
Distribution fees - Class 2 21 203 10 97
Reports to shareholders 1 25 - 19
Registration statement and
prospectus 1 - 7
Postage, stationery and
supplies 2 9 2 6
Trustees' fees 3 8 2 6
Auditing and legal fees 5 9 4 6
Custodian fee 2 22 1 13
Taxes other than federal
income tax 8 - 6
Other expenses 1 7 1 5
---------- ---------- ---------- ----------
3 3,952 22 2,846
---------- ---------- ---------- ----------
Net investment income (loss) 5,3 66,908 2,47 32,028
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) (922) (13,757) (450) (3,881)
---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 8,138 (22,789) (3,972) (27,213)
Net change in unrealized appreciation
(depreciation) on open forward (167) 340 - -
currency contracts
---------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) 7,9 (22,449) (3,97 (27,213)
---------- ---------- ---------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 7,0 (36,206) (4,42 (31,094)
---------- ---------- ---------- ----------
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 12,4 $30,702 ($1,946) $934
========= ========= ========= =========
Cash Management
Fund
---------------- ----------------
Period ended Year ended
December 31, November 30,
1999 1999
- ---------------------------------- ----------- -----------
INVESTMENT INCOME (LOSS:)
Income:
Dividends -
Interest $1,761 $16,519
---------- ----------
1,7 16,519
---------- ----------
Expenses:
Management services fee 134 1,441
Distribution fees - Class 2 10 97
Reports to shareholders 1 12
Registration statement and
prospectus 4
Postage, stationery and
supplies 1 3
Trustees' fees 1 4
Auditing and legal fees 3 3
Custodian fee 1 7
Taxes other than federal
income tax 3
Other expenses 3
---------- ----------
1 1,577
---------- ----------
Net investment income (loss) 1,6 14,942
---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 0
---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 2 (3)
Net change in unrealized appreciation
(depreciation) on open forward -
currency contracts
---------- ----------
Net unrealized appreciation
(depreciation) (3)
---------- ----------
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments (3)
---------- ----------
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,612 $14,939
========= =========
*For the period June 17, 1999,
commencement of operations,
through November 30, 1999.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series
FINANCIAL STATEMENTS
<S> <C> <C> <C>
Statement of Changes in Net Assets Global
(dollars in thousands) Growth Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $349 $3,449 $1,980
Net realized gain (loss) on investments 7,977 28,893 9,087
Net unrealized appreciation (depreciation)
on investments 102,879 136,393 26,951
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 111,205 168,735 38,018
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (1,567) (1,453) (1,226)
Class 2 (1,7 (98 (766)
----------- ----------- -----------
Total dividends from net investment income (3,2 (2,43 (1,992)
Distributions from net realized gain on
investments (28,845) (8,908) (277)
----------- ----------- -----------
Total dividends and distributions (32,114) (11,344) (2,269)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 5,394 67,540 45,339
Proceeds from shares issued on reinvestment
of dividends and distributions 14,698 6,056 1,395
Cost of shares repurchased (1,060) (10,585) (15,055)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 19,032 63,011 31,679
----------- ----------- -----------
Class 2:
Proceeds from shares sold 23,049 108,096 61,131
Proceeds from shares issued on reinvestment
of dividends and distributions 17,416 5,288 874
Cost of shares repurchased (78) (1,571) (893)
----------- ----------- -----------
Net increase from Class 2 transactions 40,387 111,813 61,112
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 59,419 174,824 92,791
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 138,510 332,215 128,540
NET ASSETS:
Beginning of period 587,517 255,302 126,762
----------- ----------- -----------
End of period $726,027 $587,517 $255,302
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) ($1,752) $1,343 $296
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 267,792 4,441,849 3,748,614
Shares issued on reinvestment of dividends
and distributions 741,190 444,162 118,716
Shares repurchased (51,502) (681,311) (1,315,104)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 957,480 4,204,700 2,552,226
============ ============ ============
Class 2:
Shares sold 1,134,476 6,844,522 5,120,157
Shares issued on reinvestment of dividends
and distributions 878,682 390,215 73,850
Shares repurchased (3,768) (105,965) (78,598)
----------- ----------- -----------
Net increase in shares outstanding 2,009,390 7,128,772 5,115,409
============ ============ ============
Global Small
Capitalization
Fund
--------------------------------------------------
Period ended Year ended Period ended
December 31, November 30, November 30,
1999 (1) 1999 1998 (2)
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) ($20) $588 $409
Net realized gain (loss) on investments 8,252 24,832 925
Net unrealized appreciation (depreciation)
on investments 20,900 61,148 (3,708)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 29,132 86,568 (2,374)
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (109) (520) (194)
Class 2 (16 (36)
----------- ----------- -----------
Total dividends from net investment income (1 (68 (230)
Distributions from net realized gain on
investments (24,812) (1,115) -
----------- ----------- -----------
Total dividends and distributions (24,921) (1,802) (230)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 11,812 63,699 50,353
Proceeds from shares issued on reinvestment
of dividends and distributions 15,545 1,362 194
Cost of shares repurchased (2,213) (27,291) (2,874)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 25,144 37,770 47,673
----------- ----------- -----------
Class 2:
Proceeds from shares sold 11,885 43,737 17,199
Proceeds from shares issued on reinvestment
of dividends and distributions 9,376 440 36
Cost of shares repurchased (152) (617) (62)
----------- ----------- -----------
Net increase from Class 2 transactions 21,109 43,560 17,173
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 46,253 81,330 64,846
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 50,464 166,096 62,242
NET ASSETS:
Beginning of period 238,338 72,242 10,000
----------- ----------- -----------
End of period $288,802 $238,338 $72,242
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) ($35) $92 $182
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 678,864 4,749,605 5,351,886
Shares issued on reinvestment of dividends
and distributions 940,440 129,600 23,072
Shares repurchased (127,204) (2,142,344) (355,692)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 1,492,100 2,736,861 5,019,266
============ ============ ============
Class 2:
Shares sold 682,640 3,234,870 1,915,704
Shares issued on reinvestment of dividends
and distributions 567,537 41,588 4,349
Shares repurchased (8,916) (48,695) (7,852)
----------- ----------- -----------
Net increase in shares outstanding 1,241,261 3,227,763 1,912,201
============ ============ ============
Growth Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $613 $11,534 $19,359
Net realized gain (loss) on investments 65,111 1,261,163 847,243
Net unrealized appreciation (depreciation)
on investments 1,119,232 1,604,675 296,599
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 1,184,956 2,877,372 1,163,201
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (4,509) (14,657) (16,761)
Class 2 (24 (125)
----------- ----------- -----------
Total dividends from net investment income (4,5 (14,90 (16,886)
Distributions from net realized gain on
investments (1,263,287) (825,168) (580,855)
----------- ----------- -----------
Total dividends and distributions (1,267,796) (840,071) (597,741)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 2,748 96,088 109,347
Proceeds from shares issued on reinvestment
of dividends and distributions 1,116,782 792,389 586,639
Cost of shares repurchased (93,709) (792,339) (589,670)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 1,025,821 96,138 106,316
----------- ----------- -----------
Class 2:
Proceeds from shares sold 72,052 403,546 195,304
Proceeds from shares issued on reinvestment
of dividends and distributions 151,014 47,682 11,102
Cost of shares repurchased (253) (795) (457)
----------- ----------- -----------
Net increase from Class 2 transactions 222,813 450,433 205,949
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 1,248,634 546,571 312,265
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,165,794 2,583,872 877,725
NET ASSETS:
Beginning of period 8,206,980 5,623,108 4,745,383
----------- ----------- -----------
End of period $9,372,774 $8,206,980 $5,623,108
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) ($67) $4,340 $7,091
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 38,157 1,565,510 2,196,906
Shares issued on reinvestment of dividends
and distributions 16,915,817 15,490,288 13,311,288
Shares repurchased (1,304,881) (12,994,043) (11,951,567)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 15,649,093 4,061,755 3,556,627
============ ============ ============
Class 2:
Shares sold 987,527 6,424,935 3,926,116
Shares issued on reinvestment of dividends
and distributions 2,288,785 933,831 252,355
Shares repurchased (3,525) (13,499) (10,179)
----------- ----------- -----------
Net increase in shares outstanding 3,272,787 7,345,267 4,168,292
============ ============ ============
International
Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $1,288 $35,635 $37,231
Net realized gain (loss) on investments 70,792 419,919 47,635
Net unrealized appreciation (depreciation)
on investments 623,662 971,987 335,472
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 695,742 1,427,541 420,338
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (13,966) (43,883) (45,333)
Class 2 (1,113) (2,507) (1,201)
----------- ----------- -----------
Total dividends from net investment income (15,079) (46,390) (46,534)
Distributions from net realized gain on
investments (394,473) (50,248) (272,318)
----------- ----------- -----------
Total dividends and distributions (409,552) (96,638) (318,852)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 3,903 34,895 41,886
Proceeds from shares issued on reinvestment
of dividends and distributions 374,983 91,716 312,120
Cost of shares repurchased (54,835) (435,475) (471,251)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 324,051 (308,864) (117,245)
----------- ----------- -----------
Class 2:
Proceeds from shares sold 25,293 93,651 68,884
Proceeds from shares issued on reinvestment
of dividends and distributions 34,569 4,922 6,732
Cost of shares repurchased (3,448) (2,045) (1,263)
----------- ----------- -----------
Net increase from Class 2 transactions 56,414 96,528 74,353
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 380,465 (212,336) (42,892)
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 666,655 1,118,567 58,594
NET ASSETS:
Beginning of period 3,837,280 2,718,713 2,660,119
----------- ----------- -----------
End of period $4,503,935 $3,837,280 $2,718,713
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $680 $15,014 ($375)
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 149,417 1,765,824 2,567,211
Shares issued on reinvestment of dividends
and distributions 15,169,223 5,064,143 21,440,773
Shares repurchased (2,089,938) (22,707,024) (30,137,030)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 13,228,702 (15,877,057) (6,129,046)
============ ============ ============
Class 2:
Shares sold 962,154 4,634,989 4,258,892
Shares issued on reinvestment of dividends
and distributions 1,398,428 269,559 460,573
Shares repurchased (134,060) (104,840) (83,746)
----------- ----------- -----------
Net increase in shares outstanding 2,226,522 4,799,708 4,635,719
============ ============ ============
New World Fund
-------------------------------------
Period ended Period ended
December 31, November 30,
1999 (1) 1999 (3)
- ---------------------------------- ----------- -----------
OPERATIONS:
Net investment income (loss) $128 $372
Net realized gain (loss) on investments 272 9
Net unrealized appreciation (depreciation)
on investments 7,725 3,445
----------- -----------
Net increase (decrease) in net assets
resulting from operations 8,125 3,826
----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (150) (67)
Class 2 (1 (34)
----------- -----------
Total dividends from net investment income (2 (101)
Distributions from net realized gain on
investments (34) -
----------- -----------
Total dividends and distributions (292) (101)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 4,008 25,029
Proceeds from shares issued on reinvestment
of dividends and distributions 169 67
Cost of shares repurchased (76) (440)
----------- -----------
Net increase (decrease) from Class 1 transacti 4,101 24,656
----------- -----------
Class 2:
Proceeds from shares sold 6,314 26,970
Proceeds from shares issued on reinvestment
of dividends and distributions 123 34
Cost of shares repurchased (39) (302)
----------- -----------
Net increase from Class 2 transactions 6,398 26,702
Net increase (decrease) in net ----------- -----------
assets resulting from capital share
transactions 10,499 51,358
----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 18,332 55,083
NET ASSETS:
Beginning of period 65,083 10,000
----------- -----------
End of period $83,415 $65,083
============ ============
Undistributed net investment income (distributions
in excess of net income) $129 $261
============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 353,465 2,519,706
Shares issued on reinvestment of dividends
and distributions 14,709 7,034
Shares repurchased (6,839) (44,653)
----------- -----------
Net increase (decrease) in shares outstanding 361,335 2,482,087
============ ============
Class 2:
Shares sold 555,757 2,709,210
Shares issued on reinvestment of dividends
and distributions 10,726 3,570
Shares repurchased (3,499) (30,258)
----------- -----------
Net increase in shares outstanding 562,984 2,682,522
============ ============
Growth-
Income Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $13,929 $132,880 $119,829
Net realized gain (loss) on investments 112,696 1,254,871 1,068,839
Net unrealized appreciation (depreciation)
on investments 116,969 (469,846) (236,509)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 243,594 917,905 952,159
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (30,097) (115,275) (115,861)
Class 2 (4,6 (11,45 (5,220)
----------- ----------- -----------
Total dividends from net investment income (34,7 (126,72 (121,081)
Distributions from net realized gain on
investments (1,257,729) (1,064,215) (633,062)
----------- ----------- -----------
Total dividends and distributions (1,292,471) (1,190,940) (754,143)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 1,257 30,036 79,575
Proceeds from shares issued on reinvestment
of dividends and distributions 1,097,689 1,093,525 730,769
Cost of shares repurchased (113,133) (1,041,360) (713,841)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 985,813 82,201 96,503
----------- ----------- -----------
Class 2:
Proceeds from shares sold 57,496 474,135 363,643
Proceeds from shares issued on reinvestment
of dividends and distributions 194,782 97,415 23,374
Cost of shares repurchased (549) (2,294) (829)
----------- ----------- -----------
Net increase from Class 2 transactions 251,729 569,256 386,188
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 1,237,542 651,457 482,691
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 188,665 378,422 680,707
NET ASSETS:
Beginning of period 7,646,139 7,267,717 6,587,010
----------- ----------- -----------
End of period $7,834,804 $7,646,139 $7,267,717
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $13,714 $34,526 $28,393
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 35,851 774,972 2,066,094
Shares issued on reinvestment of dividends
and distributions 34,671,173 30,452,267 20,193,738
Shares repurchased (3,155,701) (26,889,197) (18,531,056)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 31,551,323 4,338,042 3,728,776
============ ============ ============
Class 2:
Shares sold 1,563,119 12,167,829 9,296,520
Shares issued on reinvestment of dividends
and distributions 6,154,235 2,709,787 643,598
Shares repurchased (16,395) (59,137) (23,804)
----------- ----------- -----------
Net increase in shares outstanding 7,700,959 14,818,479 9,916,314
============ ============ ============
Asset
Allocation Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $ 5,313 $ 59,629 $ 57,128
Net realized gain (loss) on investments (2,150) 108,464 115,877
Net unrealized appreciation (depreciation)
on investments 21,367 (42,237) 6,383
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 24,530 125,856 179,388
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (12,197) (51,835) (51,238)
Class 2 (2,7 (7,68 (3,336)
----------- ----------- -----------
Total dividends from net investment income (14,9 (59,51 (54,574)
Distributions from net realized gain on
investments (108,804) (115,203) (78,277)
----------- ----------- -----------
Total dividends and distributions (123,743) (174,721) (132,851)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 945 16,085 55,514
Proceeds from shares issued on reinvestment
of dividends and distributions 99,814 154,558 126,847
Cost of shares repurchased (27,140) (231,188) (120,895)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 73,619 (60,545) 61,466
----------- ----------- -----------
Class 2:
Proceeds from shares sold 16,286 138,364 121,817
Proceeds from shares issued on reinvestment
of dividends and distributions 23,929 20,163 6,004
Cost of shares repurchased (1,014) (5,215) (195)
----------- ----------- -----------
Net increase from Class 2 transactions 39,201 153,312 127,626
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 112,820 92,767 189,092
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,607 43,902 235,629
NET ASSETS:
Beginning of period 1,714,513 1,670,611 1,434,982
----------- ----------- -----------
End of period $1,728,120 $1,714,513 $1,670,611
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $5,116 $14,824 $14,723
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 61,842 1,006,722 3,472,672
Shares issued on reinvestment of dividends
and distributions 6,831,915 9,936,348 8,206,467
Shares repurchased (1,747,496) (14,375,597) (7,525,015)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 5,146,261 (3,432,527) 4,154,124
============ ============ ============
Class 2:
Shares sold 1,035,600 8,584,297 7,514,429
Shares issued on reinvestment of dividends
and distributions 1,637,814 1,294,397 385,691
Shares repurchased (66,355) (326,832) (12,673)
----------- ----------- -----------
Net increase in shares outstanding 2,607,059 9,551,862 7,887,447
============ ============ ============
Bond Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $1,621 $17,076 $12,668
Net realized gain (loss) on investments (155) (1,349) 1,054
Net unrealized appreciation (depreciation)
on investments 50 (10,336) (4,888)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 1,516 5,391 8,834
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (3,003) (12,348) (9,573)
Class 2 (1,4 (3,82 (1,605)
----------- ----------- -----------
Total dividends from net investment income (4,4 (16,17 (11,178)
Distributions from net realized gain on
investments (1,080) (1,717)
----------- ----------- -----------
Total dividends and distributions (4,425) (17,256) (12,895)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 226 23,707 64,860
Proceeds from shares issued on reinvestment
of dividends and distributions 3,003 13,208 11,132
Cost of shares repurchased (5,507) (40,585) (18,584)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti (2,278) (3,670) 57,408
----------- ----------- -----------
Class 2:
Proceeds from shares sold 5,106 37,873 33,674
Proceeds from shares issued on reinvestment
of dividends and distributions 1,422 4,048 1,763
Cost of shares repurchased (424) (4,348) (1,431)
----------- ----------- -----------
Net increase from Class 2 transactions 6,104 37,573 34,006
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 3,826 33,903 91,414
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 917 22,038 87,353
NET ASSETS:
Beginning of period 253,317 231,279 143,926
----------- ----------- -----------
End of period $254,234 $253,317 $231,279
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $1,580 $4,385 $3,506
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 22,935 2,350,427 6,220,296
Shares issued on reinvestment of dividends
and distributions 308,959 1,326,283 1,070,589
Shares repurchased (559,581) (4,049,517) (1,789,981)
----------- ----------- -----------
Net increase (decrease) in shares outstanding (227,687) (372,807) 5,500,904
============ ============ ============
Class 2:
Shares sold 517,185 3,794,942 3,219,589
Shares issued on reinvestment of dividends
and distributions 146,356 407,478 169,961
Shares repurchased (43,351) (435,922) (137,744)
----------- ----------- -----------
Net increase in shares outstanding 620,190 3,766,498 3,251,806
============ ============ ============
High-Yield
Bond Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $5,386 $66,908 $70,319
Net realized gain (loss) on investments (922) (13,757) 6,948
Net unrealized appreciation (depreciation)
on investments 7,971 (22,449) (66,774)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 12,435 30,702 10,493
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (13,126) (64,228) (65,776)
Class 2 (2,1 (7,68 (3,726)
----------- ----------- -----------
Total dividends from net investment income (15,2 (71,91 (69,502)
Distributions from net realized gain on
investments (10,695) (8,320)
----------- ----------- -----------
Total dividends and distributions (15,264) (82,607) (77,822)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 1,744 18,289 45,293
Proceeds from shares issued on reinvestment
of dividends and distributions 13,126 73,957 73,843
Cost of shares repurchased (15,279) (171,534) (107,252)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti (409) (79,288) 11,884
----------- ----------- -----------
Class 2:
Proceeds from shares sold 3,289 30,578 49,128
Proceeds from shares issued on reinvestment
of dividends and distributions 2,138 8,650 3,979
Cost of shares repurchased (940) (6,260) (1,418)
----------- ----------- -----------
Net increase from Class 2 transactions 4,487 32,968 51,689
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 4,078 (46,320) 63,573
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,249 (98,225) (3,756)
NET ASSETS:
Beginning of period 684,077 782,302 786,058
----------- ----------- -----------
End of period $685,326 $684,077 $782,302
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $4,014 $13,841 $17,744
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 136,572 1,381,259 3,143,506
Shares issued on reinvestment of dividends
and distributions 1,034,422 5,670,708 5,138,832
Shares repurchased (1,188,364) (12,975,153) (7,540,786)
----------- ----------- -----------
Net increase (decrease) in shares outstanding (17,370) (5,923,186) 741,552
============ ============ ============
Class 2:
Shares sold 254,659 2,325,235 3,361,669
Shares issued on reinvestment of dividends
and distributions 168,481 665,715 280,937
Shares repurchased (73,302) (480,054) (105,506)
----------- ----------- -----------
Net increase in shares outstanding 349,838 2,510,896 3,537,100
============ ============ ============
U.S. Government/
AAA-Rated
Securities Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $2,476 $32,028 $30,885
Net realized gain (loss) on investments (450) (3,881) 4,748
Net unrealized appreciation (depreciation)
on investments (3,972) (27,213) 5,763
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations (1,946) 934 41,396
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (6,962) (30,055) (29,472)
Class 2 (7 (2,22 (938)
----------- ----------- -----------
Total dividends from net investment income (7,7 (32,28 (30,410)
Distributions from net realized gain on
investments - - -
----------- ----------- -----------
Total dividends and distributions (7,718) (32,282) (30,410)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 941 27,407 97,521
Proceeds from shares issued on reinvestment
of dividends and distributions 6,961 30,055 29,472
Cost of shares repurchased (10,015) (133,690) (71,432)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti (2,113) (76,228) 55,561
----------- ----------- -----------
Class 2:
Proceeds from shares sold 1,753 22,324 26,930
Proceeds from shares issued on reinvestment
of dividends and distributions 757 2,227 938
Cost of shares repurchased (358) (7,625) (3,235)
----------- ----------- -----------
Net increase from Class 2 transactions 2,152 16,926 24,633
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 39 (59,302) 80,194
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,625) (90,650) 91,180
NET ASSETS:
Beginning of period 478,179 568,829 477,649
----------- ----------- -----------
End of period $468,554 $478,179 $568,829
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $2,310 $7,682 $7,936
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 87,758 2,460,496 8,582,116
Shares issued on reinvestment of dividends
and distributions 659,229 2,735,646 2,630,834
Shares repurchased (935,749) (12,168,746) (6,349,283)
----------- ----------- -----------
Net increase (decrease) in shares outstanding (188,762) (6,972,604) 4,863,667
============ ============ ============
Class 2:
Shares sold 162,396 2,025,288 2,379,800
Shares issued on reinvestment of dividends
and distributions 71,621 203,277 83,414
Shares repurchased (33,738) (691,609) (287,245)
----------- ----------- -----------
Net increase in shares outstanding 200,279 1,536,956 2,175,969
============ ============ ============
Cash Management
Fund
--------------------------------------------------
Period ended Year ended Year ended
December 31, November 30, November 30,
1999 (1) 1999 1998
- ---------------------------------- ----------- ----------- -----------
OPERATIONS:
Net investment income (loss) $1,610 $14,942 $13,045
Net realized gain (loss) on investments - - 1
Net unrealized appreciation (depreciation)
on investments 2 (3) -
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 1,612 14,939 13,046
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (3,707) (13,032) (11,431)
Class 2 (526) (1,66 (984)
----------- ----------- -----------
Total dividends from net investment income (4,233) (14,69 (12,415)
Distributions from net realized gain on
investments - - -
----------- ----------- -----------
Total dividends and distributions (4,233) (14,699) (12,415)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 19,537 282,973 269,818
Proceeds from shares issued on reinvestment
of dividends and distributions 3,707 13,032 11,431
Cost of shares repurchased (10,257) (239,463) (258,426)
----------- ----------- -----------
Net increase (decrease) from Class 1 transacti 12,987 56,542 22,823
----------- ----------- -----------
Class 2:
Proceeds from shares sold 4,545 41,842 40,995
Proceeds from shares issued on reinvestment
of dividends and distributions 526 1,667 984
Cost of shares repurchased (4,794) (29,551) (21,792)
----------- ----------- -----------
Net increase from Class 2 transactions 277 13,958 20,187
Net increase (decrease) in net ----------- ----------- -----------
assets resulting from capital share
transactions 13,264 70,500 43,010
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 10,643 70,740 43,641
NET ASSETS:
Beginning of period 354,256 283,516 239,875
----------- ----------- -----------
End of period $364,899 $354,256 $283,516
============ ============ ============
Undistributed net investment income (distributions
in excess of net income) $1,592 $4,215 $3,971
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,759,589 25,510,844 24,352,691
Shares issued on reinvestment of dividends
and distributions 336,087 1,182,023 1,037,352
Shares repurchased (922,781) (21,593,174) (23,299,957)
----------- ----------- -----------
Net increase (decrease) in shares outstanding 1,172,895 5,099,693 2,090,086
============ ============ ============
Class 2:
Shares sold 409,857 3,773,972 3,700,810
Shares issued on reinvestment of dividends
and distributions 47,642 151,230 89,256
Shares repurchased (431,087) (2,666,463) (1,966,921)
----------- ----------- -----------
Net increase in shares outstanding 26,412 1,258,739 1,823,145
============ ============ ============
(1) Represents the one month ended December 31, 1999.
(2) For the period April 30, 1998, commencement
of operations, through November 30, 1998.
(3) For the period June 17, 1999, commencement
of operations, through November 30, 1999.
(4) 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 11 different funds. The 11th fund, the New World Fund,
commenced operations on June 17, 1999. 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; New World Fund -
long-term growth of capital by investing primarily in stocks of companies with
significant exposure to countries which have developing economies and/or
markets. 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 offers Class 1 and Class 2 shares. 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. Holders of both
classes of shares have identical voting, dividend, liquidation and other rights
and shall have exclusive rights to vote on matters affecting only their
classes. The shares of each class represent an interest in the same portfolio
of investments of each fund.
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 series' year-end changed from November 30 to December 31
effective December 1, 1999. 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 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 manage 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.
CLASS ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are prorated between the classes based
on the relative net assets of each class. Distribution and any other
class-specific expenses, if any, are calculated daily at the class level based
on the relative daily net assets of each class and the specific expense rate
applicable to each class.
2. NON-U.S. INVESTMENTS
INVESTMENT RISK - 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.
TAXATION - Dividend and Interest income is recorded net of non-U.S. taxes paid.
3. FEDERAL INCOME TAXATION - Each fund in the series intends to comply 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 period. As a regulated investment company,
each fund in 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 funds.
The Bond Fund, the High-Yield Bond Fund, and the U.S. Government/AAA-Rated
Securities Fund had net capital loss carryforwards available at December 31,
1999 and at November 30, 1999. The Asset Allocation Fund had a net capital
loss carryforward available at December 31, 1999. These amounts may be used to
offset capital gains realized during subsequent years expiring December 31,
2003 through 2007, 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 funds will not make distributions from capital gains while a
capital loss carryforward remains.
Tax basis disclosures as of and for the one month ended December 31, 1999 and
as of and for the year ended November 30, 1999 are as follows:
<TABLE>
<S> <C> <C> <C> <C>
(dollars in
Global Global Small thousands)
Growth Capitalization Growth International
Fund Fund Fund Fund
As of and for the one-month period
Ended December 31, 1999:
For the one month
ended December 31, 1999:
Net capital gain (loss) $ 7,97 $ 8,25 $ 65,10 $ 70,763
Net currency gain (loss) 29
As of December 31, 1999 (excluding
forward currency contracts):
Unrealized
appreciation 284,23 91,69 4,613,55 2,253,753
Unrealized
depreciation 19,53 13,35 265,15 43,190
Net unrealized
appreciation
(depreciation) 264,69 78,34 4,348,39 2,210,563
Cost of portfolio
securities 460,36 210,08 5,026,39 2,292,163
Capital loss carryforward at
December 31, 1999 -
As of and for the year ended
November 30, 1999:
For the year
ended November 30, 1999:
Net capital gain (loss) $ 28,85 $ 24,69 $ 1,260,93 $ 395,686
Net currency gain (loss) 3 22 (7)
Losses during the period
November 1, 1999 to
November 30, 1999 deferred to
fiscal period ending
December 31,1999 related to
the following:
Currency - -
Capital gains - -
As of November 30, 1999 (excluding
forward currency contracts):
Unrealized
appreciation 183,39 70,06 3,561,22 1,650,486
Unrealized
depreciation 21,56 12,62 332,07 63,586
Net unrealized
appreciation
(depreciation) 161,83 57,44 3,229,14 1,586,900
Cost of portfolio
securities 440,18 182,72 5,033,49 2,244,736
Capital loss carryforward at
November 30, 1999 -
(dollars in
thousands)
New Growth- Asset
World Income Allocation Bond
Fund Fund Fund Fund
As of and for the one-month period
Ended December 31, 1999:
For the one month
ended December 31, 1999:
Net capital gain (loss) $ 27 $ 112,69 $ (2,15 $ (154)
Net currency gain (loss) ( (2)
As of December 31, 1999 (excluding
forward currency contracts):
Unrealized
appreciation 12,75 1,849,34 373,63 4,134
Unrealized
depreciation 1,58 735,96 116,63 16,210
Net unrealized
appreciation
(depreciation) 11,17 1,113,37 257,00 (12,076)
Cost of portfolio
securities 71,65 6,715,43 1,463,07 262,762
Capital loss carryforward at
December 31, 1999 2,15 1,500
As of and for the year ended
November 30, 1999:
For the year
ended November 30, 1999:
Net capital gain (loss) 19 * $ 1,254,89 $ 108,47 $ (1,346)
Net currency gain (loss) (10)* (2 (1 (21)
Losses during the period
November 1, 1999 to
November 30, 1999 deferred to
fiscal period ending
December 31,1999 related to
the following:
Currency 1
Capital gains -
As of November 30, 1999 (excluding
forward currency contracts):
Unrealized
appreciation 6,06 1,686,83 344,10 3,495
Unrealized
depreciation 2,62 690,43 108,47 15,620
Net unrealized
appreciation
(depreciation) 3,44 996,40 235,63 (12,125)
Cost of portfolio
securities 63,48 6,660,33 1,479,34 261,075
Capital loss carryforward at
November 30, 1999 1,346
(dollars in
thousands)
High-Yiel U.S. Government Cash
Bond AAA-Rated Management
Fund Securities Fund Fund
As of and for the one-month period
Ended December 31, 1999:
For the one month
ended December 31, 1999:
Net capital gain (loss) $ (97 $ (73 -
Net currency gain (loss) (11 -
As of December 31, 1999 (excluding
forward currency contracts):
Unrealized
appreciation 51,35 72 $ 1
Unrealized
depreciation 105,42 16,36 2
Net unrealized
appreciation
(depreciation) (54,07 (15,64 (1)
Cost of portfolio
securities 729,24 480,66 365,701
Capital loss carryforward at
December 31, 1999 19,70 19,85 -
As of and for the year ended
November 30, 1999:
For the year
ended November 30, 1999:
Net capital gain (loss) $ (18,72 $ (3,59 -
Net currency gain (loss) 1,40 -
Losses during the period
November 1, 1999 to
November 30, 1999 deferred to
fiscal period ending
December 31,1999 related to
the following:
Currency -
Capital gains 28 -
As of November 30, 1999 (excluding
forward currency contracts):
Unrealized
appreciation 42,03 1,59 -
Unrealized
depreciation 104,23 13,25 $ 3
Net unrealized
appreciation
(depreciation) (62,19 (11,66 (3)
Cost of portfolio
securities 735,08 482,11 355,124
Capital loss carryforward at
November 30, 1999 18,72 19,12 -
* For the period
June 17, 1999,
commencement of operations,
through November 30, 1999.
</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; New World Fund - 0.85% of average net assets;
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 one
month ended December 31, 1999 and the year ended November 30, 1999,
distribution expenses under the Plan for the series aggregated $765,000 and
$5,710,000 respectively. As of December 31, 1999 and November 30, 1999,
accrued and unpaid distribution expenses were $765,000 and $671,000,
respectively.
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 December 31, 1999 and November 30, 1999, aggregate deferred
amounts and earnings thereon since the deferred compensation plan's adoption
(1993) net of any payments to Trustees, were $694,000 and $628,000,
respectively. 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 as of and for the periods
ended December 31, 1999 and November 30, 1999:
<TABLE>
(dollars in
<S> <C> <C> <C> <C>
thousands)
Global Global Small
Growth Capitalization Growth Interna-
Fund Fund Fund tional Fund
As of and for the one month period
ended December 31, 1999:
For the month
ended December 31,1999:
Purchases of
investment
securities (1) $ 17,49 $ 32,64 $ 268,85 $ 57,137
Sales of invest-
ment securities (1) 15,99 15,77 211,81 149,840
Non-U.S taxes withheld on
dividend and interest income 2 277
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts, and other receivables
and payables 29
As of December 31, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments 7,97 8,06 65,10 70,763
Reclassification from (to)
undistributed net investment
income to (from)undistributed
net realized gain 17 ( 51 543
Paid-in capital 455,11 202,42 4,959,34 2,221,997
As of and for the year ended
November 30, 1999:
For the year
ended November 30,1999:
Purchases of
investment
securities (1) $ 245,15 $ 166,68 $2,408,19 $ 1,217,049
Sales of invest-
ment securities (1) 87,80 95,38 2,755,32 1,537,097
Non-U.S taxes withheld on
dividend and interest income 28 5 5,367
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts and other receivables
and payables 3 22 (208)
As of November 30, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments 28,66 24,63 1,262,76 393,901
Reclassification from (to)
undistributed net investment
income to (from)undistributed
net realized gain (3 ( (61 (26,144)
Paid-in capital 395,69 156,17 3,710,70 1,841,532
New Growth- Asset
World Income Allocatio Bond
Fund Fund Fund Fund
As of and for the one month period
ended December 31, 1999:
For the month
ended December 31,1999:
Purchases of
investment
securities (1) $ 4,99 $ 182,07 $ 27,75 $ 12,417
Sales of invest-
ment securities (1) 1,49 245,06 22,49 16,510
Non-U.S taxes withheld on
dividend and interest income - -
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts, and other receivables
and payables ( (1)
As of December 31, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments 25 112,95 (2,15 (1,500)
Reclassification from (to)
undistributed net investment
income to (from)undistributed
net realized gain ( 8 1
Paid-in capital 71,85 6,594,76 1,468,15 266,238
As of and for the year ended
November 30, 1999:
For the year
ended November 30,1999:
Purchases of
investment
securities (1) $ 49,16 $ 2,765,69 $ 573,97 $ 115,202
Sales of invest-
ment securities (1) 23 3,323,95 591,35 85,155
Non-U.S taxes withheld on
dividend and interest income -
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts and other receivables
and payables (1 (2 (3 (152)
As of November 30, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments 1 1,257,98 108,72 (1,346)
Reclassification from (to)
undistributed net investment
income to (from)undistributed
net realized gain 1 2 1 21
Paid-in capital 61,35 5,357,22 1,355,33 262,412
High-Yiel U.S. Government Cash
Bond AAA-Rated Management
Fund Securities Fund Fund
As of and for the one month period
ended December 31, 1999:
For the month
ended December 31,1999:
Purchases of
investment
securities (1) $ 10,37 $ 8,53 -
Sales of invest-
ment securities (1) 8,70 17,06 -
Non-U.S taxes withheld on
dividend and interest income -
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts, and other receivables
and payables ( -
As of December 31, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments (19,70 (19,85 -
Reclassification from (to)
undistributed net investment
income to (from)undistributed
net realized gain (5 13 -
Paid-in capital 754,90 501,74 $ 363,308
As of and for the year ended
November 30, 1999:
For the year
ended November 30,1999:
Purchases of
investment
securities (1) $ 214,02 $ 296,42 -
Sales of invest-
ment securities (1) 281,57 343,12 -
Non-U.S taxes withheld on
dividend and interest income -
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts and other receivables
and payables (37 -
As of November 30, 1999:
Accumulated
undistributed
net realized
gain (loss) on
investments (18,72 (19,53 -
Reclassification from (to)
undistributed net investment
income to (from)undistributed
net realized gain (1,10 $ (1)
Paid-in capital 750,82 501,70 350,044
(1) Excludes short-
term securities
(2) For the period
June 17, 1999,
commencement of operations,
through November 30, 1999.
</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. For the one month ended December 31, 1999 and the year
ended November 30, 1999, custodian fees for the series aggregated $224,000 and
$2,033,000, respectively, of which $11,000 and $94,000, respectively, were paid
by these credits rather than in cash.
The High-Yield Bond Fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
<TABLE>
<S> <C> <C> <C> <C>
Non-U.S. Currency Sale Contracts
Contract
Amount
---------------
Fund Non-U.S. U.S.
--------------- -------------- ---------------
At December 31, 1999: Euro
expiring High-Yield Bond 4,330,00 4,549,000
1/24-2/24/2000
British Pounds
expiring High-Yield Bond 6,696,00 10,831,000
2/1-3/17/2000
At November 30, 1999: Euro
expiring High-Yield Bond 4,330,00 4,596,000
12/6/1999-2/24/2000
British Pounds
expiring High-Yield Bond 6,696,00 10,838,000
12/17/1999-2/10/2000
U.S.
Valuation
-----------------
Unrealized
Appreciation
Fund Amount (Depreciation)
--------------- -------------- ---------------
At December 31, 1999: Euro
expiring High-Yield Bond 4,372,00 177,000
1/24-2/24/2000
British Pounds
expiring High-Yield Bond 10,821,00 10,000
2/1-3/17/2000
At November 30, 1999: Euro
expiring High-Yield Bond 4,382,00 214,000
12/6/1999-2/24/2000
British Pounds
expiring High-Yield Bond 10,698,00 140,000
12/17/1999-2/10/2000
</TABLE>
<TABLE>
PER-SHARE
DATA AND
RATIOS
<S> <C> <C> <C> <C> <C> <C> <C>
Net gains
(losses) on
securitie Total DividendDistri-
Net asse Net (both from (from nebutions
value, invest- realized invest- invest- (from Total
Year beginnin ment and ment ment capital distri-
Ended (1) of year income unrealizeoperationincome) gains) butions
- --------- -----------------------------------------------------------
Global Growth Fund (2)
Class 1
11/30/1997 $10.00 $.06 $ .59 $ .65 $(.03) - $(.03)
11/30/1998 10.62 .13 2.43 2.56 (.14) $(.02) (.16)
11/30/1999 13.02 .14 6.39 6.53 (.12) (.44) (.56)
12/31/1999 18.99 .01 3.43 3.44 (.11) (.90) (1.01)
Class 2
11/30/1997 10.00 .03 .60 .63 (.02) - (.02)
11/30/1998 10.61 .10 2.44 2.54 (.11) (.02) (.13)
11/30/1999 13.02 .11 6.37 6.48 (.08) (.44) (.52)
12/31/1999 18.98 .01 3.42 3.43 (.10) (.90) (1.00)
Global Small
Capitalization Fund (4)
Class 1
11/30/1998 $10.00 $.07 $(.92) $(.85) $(.04) - $(.04)
11/30/1999 9.11 .06 8.20 8.26 (.08) $(.13) (.21)
12/31/1999 17.16 - 1.92 1.92 (.01) (1.70) (1.71)
Class 2
11/30/1998 10.00 .04 (.91) (.87) (.03) - (.03)
11/30/1999 9.10 .04 8.19 8.23 (.06) (.13) (.19)
12/31/1999 17.14 - 1.92 1.92 - (1.70) (1.70)
Growth Fund
Class 1
11/30/1995 31.94 .33 10.63 10.96 (.29) (.80) (1.09)
11/30/1996 41.81 .24 5.17 5.41 (.29) (3.40) (3.69)
11/30/1997 43.53 .27 9.61 9.88 (.27) (3.02) (3.29)
11/30/1998 50.12 .19 10.91 11.10 (.17) (6.14) (6.31)
11/30/1999 54.91 .11 25.35 25.46 (.14) (8.11) (8.25)
12/31/1999 72.12 .01 9.64 9.65 (.05) (11.10) (11.15)
Class 2 (5)
11/30/1997 40.59 .11 9.51 9.62 (.12) - (.12)
11/30/1998 50.09 .08 10.90 10.98 (.05) (6.14) (6.19)
11/30/1999 54.88 (.02) 25.33 25.31 (.04) (8.11) (8.15)
12/31/1999 72.04 - 9.63 9.63 - (11.10) (11.10)
International Fund
Class 1
11/30/1995 13.27 .34 1.02 1.36 (.33) (.41) (.74)
11/30/1996 13.89 .28 1.96 2.24 (.31) (.29) (.60)
11/30/1997 15.53 .25 1.18 1.43 (.27) (.62) (.89)
11/30/1998 16.07 .22 2.21 2.43 (.28) (1.65) (1.93)
11/30/1999 16.57 .25 8.87 9.12 (.30) (.31) (.61)
12/31/1999 25.08 .01 4.34 4.35 (.10) (2.59) (2.69)
Class 2 (5)
11/30/1997 15.86 .13 .23 .36 (.16) - (.16)
11/30/1998 16.06 .20 2.19 2.39 (.24) (1.65) (1.89)
11/30/1999 16.56 .10 8.98 9.08 (.26) (.31) (.57)
12/31/1999 25.07 .01 4.33 4.34 (.09) (2.59) (2.68)
New World Fund (6)
Class 1
11/30/1999 10.00 .07 .51 .58 (.02) - (.02)
12/31/1999 10.56 .01 1.25 1.26 (.04) (.01) (.05)
Class 2
11/30/1999 10.00 .06 .51 .57 (.02) - (.02)
12/31/1999 10.55 .02 1.25 1.27 (.04) (.01) (.05)
Growth Income Fund
Class 1
11/30/1995 25.30 .73 7.20 7.93 (.73) (1.03) (1.76)
11/30/1996 31.47 .71 5.55 6.26 (.74) (1.26) (2.00)
11/30/1997 35.73 .73 6.78 7.51 (.72) (2.55) (3.27)
11/30/1998 39.97 .67 4.60 5.27 (.68) (3.83) (4.51)
11/30/1999 40.73 .69 3.94 4.63 (.66) (6.00) (6.66)
12/31/1999 38.70 .06 .88 .94 (.18) (6.38) (6.56)
Class 2 (5)
11/30/1997 34.10 .37 5.82 6.19 (.35) - (.35)
11/30/1998 39.94 .58 4.60 5.18 (.59) (3.83) (4.42)
11/30/1999 40.70 .59 3.94 4.53 (.56) (6.00) (6.56)
12/31/1999 38.67 .07 .87 .94 (.16) (6.38) (6.54)
Asset Allocation Fund
Class 1
11/30/1995 11.25 .50 2.69 3.19 (.50) (.17) (.67)
11/30/1996 13.77 .53 1.89 2.42 (.53) (.48) (1.01)
11/30/1997 15.18 .55 1.94 2.49 (.54) (.97) (1.51)
11/30/1998 16.16 .58 1.27 1.85 (.57) (.87) (1.44)
11/30/1999 16.57 .58 .60 1.18 (.57) (1.15) (1.72)
12/31/1999 16.03 .05 .15 .20 (.14) (1.02) (1.16)
Class 2 (5)
11/30/1997 14.43 .29 1.69 1.98 (.26) - (.26)
11/30/1998 16.15 .53 1.28 1.81 (.53) (.87) (1.40)
11/30/1999 16.56 .53 .61 1.14 (.53) (1.15) (1.68)
12/31/1999 16.02 .05 .14 .19 (.13) (1.02) (1.15)
Bond Fund (7)
Class 1
11/30/1996 $10.00 $.40 $.16 $.56 $(.25) - $(.25)
11/30/1997 10.31 .63 .30 .93 (.62) - (.62)
11/30/1998 10.62 .67 (.15) .52 (.65) $(.12) (.77)
11/30/1999 10.37 .73 (.50) .23 (.69) (.05) (.74)
12/31/1999 9.86 .07 (.01) .06 (.18) - (.18)
Class 2 (5)
11/30/1997 10.11 .35 .46 .81 (.31) - (.31)
11/30/1998 10.61 .65 (.15) .50 (.63) (.12) (.75)
11/30/1999 10.36 .67 (.47) .20 (.66) (.05) (.71)
12/31/1999 9.85 .06 - .06 (.17) - (.17)
High-Yield Bond Fund
Class 1
11/30/1995 $ 12.8 $ 1.32 $1.10 $2.42 $(1.32) - $(1.32)
11/30/1996 13.99 1.28 .54 1.82 (1.30) - (1.30)
11/30/1997 14.51 1.29 .43 1.72 (1.27) - (1.27)
11/30/1998 14.96 1.26 (1.04) .22 (1.25) (.16) (1.41)
11/30/1999 13.77 1.26 (.72) .54 (1.31) (.19) (1.50)
12/31/1999 12.81 .11 .12 .23 (.29) - (.29)
Class 2 (5)
11/30/1997 14.28 .69 .61 1.30 (.63) - (.63)
11/30/1998 14.95 1.25 (1.06) .19 (1.22) (.16) (1.38)
11/30/1999 13.76 1.18 (.67) .51 (1.28) (.19) (1.47)
12/31/1999 12.80 .11 .12 .23 (.28) - (.28)
U.S. Government/AAA-Rated
Securities Fund
Class 1
11/30/1995 $ 10.8 $ 0.82 $.71 $1.53 $(.81) - $(.81)
11/30/1996 11.52 .83 (.24) .59 (.82) - (.82)
11/30/1997 11.29 .76 (.07) .69 (.80) - (.80)
11/30/1998 11.18 .68 .26 .94 (.69) - (.69)
11/30/1999 11.43 .69 (.67) .02 (.67) - (.67)
12/31/1999 10.78 .06 (.10) (.04) (.18) - (.18)
Class 2 (5)
11/30/1997 10.83 .38 .33 .71 (.37) - (.37)
11/30/1998 11.17 .68 .24 .92 (.67) - (.67)
11/30/1999 11.42 .65 (.64) .01 (.65) - (.65)
12/31/1999 10.78 .05 (.10) (.05) (.17) - (.17)
Cash Management Fund
Class 1
11/30/1995 11.09 .63 (.02) .61 (.59) - (.59)
11/30/1996 11.11 .54 .01 .55 (.54) - (.54)
11/30/1997 11.12 .57 (.01) .56 (.55) - (.55)
11/30/1998 11.13 .57 (.01) .56 (.56) - (.56)
11/30/1999 11.13 .49 .02 .51 (.51) - (.51)
12/31/1999 11.13 .05 - .05 (.13) - (.13)
Class 2 (5)
11/30/1997 11.07 .28 .03 .31 (.26) - (.26)
11/30/1998 11.12 .55 (.02) .53 (.53) - (.53)
11/30/1999 11.12 .48 - .48 (.48) - (.48)
12/31/1999 11.12 .05 - .05 (.13) - (.13)
Net asset Net assetRatio of
value, end of expenses
Year end of Total year (in to average
Ended (1) year return millions)net assets
- --------- ----------------- ------------------
Global Growth Fund (2)
Class 1
11/30/1997 $10.62 6.45 % (3) $ 80 .44 % (3)
11/30/1998 13.02 24.26 132 .75
11/30/1999 18.99 51.89 272 .72
12/31/1999 21.42 18.53 (3) 327 .06 (3)
Class 2
11/30/1997 10.61 6.28 (3) 46 .57 (3)
11/30/1998 13.02 24.06 124 1.00
11/30/1999 18.98 51.45 316 .96
12/31/1999 21.41 18.47 (3) 399 .08 (3)
Global Small
Capitalization Fund (4)
Class 1
11/30/1998 $ 9.11 (8.31) % (3) $55 .51 % (3)
11/30/1999 17.16 92.15 150 .82
12/31/1999 17.37 11.70 (3) 178 .07 (3)
Class 2
11/30/1998 9.10 (8.49) (3) 17 .64 (3)
11/30/1999 17.14 91.86 88 1.06
12/31/1999 17.36 11.69 (3) 111 .09 (3)
Growth Fund
Class 1
11/30/1995 41.81 35.35 3,154 .47
11/30/1996 43.53 14.32 3,860 .44
11/30/1997 50.12 24.57 4,671 .42
11/30/1998 54.91 25.27 5,313 .41
11/30/1999 72.12 52.55 7,270 .39
12/31/1999 70.62 14.45 (3) 8,224 .03 (3)
Class 2 (5)
11/30/1997 50.09 23.73 (3) 75 .37 (3)
11/30/1998 54.88 24.97 310 .66
11/30/1999 72.04 52.22 937 .64
12/31/1999 70.57 14.44 (3) 1,149 .05 (3)
International Fund
Class 1
11/30/1995 13.89 10.78 1,703 .75
11/30/1996 15.53 16.66 2,370 .69
11/30/1997 16.07 9.52 2,612 .67
11/30/1998 16.57 16.94 2,593 .66
11/30/1999 25.08 56.48 3,526 .61
12/31/1999 26.74 18.18 (3) 4,113 .05 (3)
Class 2 (5)
11/30/1997 16.06 2.20 (3) 48 .53 (3)
11/30/1998 16.56 16.63 126 .91
11/30/1999 25.07 56.16 311 .85
12/31/1999 26.73 18.16 (3) 391 .07 (3)
New World Fund (6)
Class 1
11/30/1999 10.56 5.87 (3) 37 .43 (3)
12/31/1999 11.77 11.88 (3) 45 .08 (3)
Class 2
11/30/1999 10.55 5.71 (3) 28 .57 (3)
12/31/1999 11.77 11.87 (3) 38 .10 (3)
Growth Income Fund
Class 1
11/30/1995 31.47 33.14 3,953 .44
11/30/1996 35.73 21.02 5,249 .41
11/30/1997 39.97 22.92 6,430 .38
11/30/1998 40.73 14.77 6,704 .36
11/30/1999 38.70 12.86 6,537 .35
12/31/1999 33.08 3.21 (3) 6,632 .03 (3)
Class 2 (5)
11/30/1997 39.94 18.18 (3) 157 .35 (3)
11/30/1998 40.70 14.49 564 .61
11/30/1999 38.67 12.59 1,109 .60
12/31/1999 33.07 3.19 (3) 1,203 .05 (3)
Asset Allocation Fund
Class 1
11/30/1995 13.77 29.45 870 .52
11/30/1996 15.18 18.65 1,141 .49
11/30/1997 16.16 17.90 1,393 .47
11/30/1998 16.57 12.32 1,497 .45
11/30/1999 16.03 7.65 1,394 .44
12/31/1999 15.07 1.45 (3) 1,387 .04 (3)
Class 2 (5)
11/30/1997 16.15 13.80 (3) 42 .40 (3)
11/30/1998 16.5 12.05 173 .70
11/30/1999 16.02 7.39 321 .69
12/31/1999 15.06 1.42 (3) 341 .06 (3)
Bond Fund (7)
Class 1
11/30/1996 $10.31 5.74 % (3) $ 77 .52 % (3)
11/30/1997 10.62 9.36 132 .55
11/30/1998 10.37 5.12 186 .54
11/30/1999 9.86 2.33 173 .53
12/31/1999 9.74 .59 (3) 169 .05 (3)
Class 2 (5)
11/30/1997 10.61 8.09 (3) 12 .44 (3)
11/30/1998 10.36 4.85 45 .78
11/30/1999 9.85 2.07 80 .78
12/31/1999 9.74 .59 (3) 85 .07 (3)
High-Yield Bond Fund
Class 1
11/30/1995 $13.99 19.81 % $ 534 .54 %
11/30/1996 14.51 13.75 662 .53
11/30/1997 14.96 12.45 (3) 765 .51
11/30/1998 13.77 1.44 715 .51
11/30/1999 12.81 4.22 589 .51
12/31/1999 12.75 1.83 (3) 586 .04 (3)
Class 2 (5)
11/30/1997 14.95 9.20 (3) 21 .43 (3)
11/30/1998 13.76 1.18 68 .76
11/30/1999 12.80 3.96 95 .76
12/31/1999 12.75 1.81 (3) 99 .07 (3)
U.S. Government/AAA-Rated
Securities Fund
Class 1
11/30/1995 $11.52 14.73 % $ 542 .54 %
11/30/1996 11.29 5.49 512 .53
11/30/1997 11.18 6.49 471 .52
11/30/1998 11.43 8.72 537 .51
11/30/1999 10.78 .24 431 .52
12/31/1999 10.56 (.41) (3) 421 .05 (3)
Class 2 (5)
11/30/1997 11.17 6.65 (3) 7 .44 (3)
11/30/1998 11.42 8.46 32 .75
11/30/1999 10.78 .08 47 .77
12/31/1999 10.56 (.43) (3) 48 .07 (3)
Cash Management Fund
Class 1
11/30/1995 11.11 5.65 193 .49
11/30/1996 11.12 5.09 240 .47
11/30/1997 11.13 5.21 226 .47
11/30/1998 11.13 5.17 250 .46
11/30/1999 11.13 4.73 306 .46
12/31/1999 11.05 .46 (3) 317 .04 (3)
Class 2 (5)
11/30/1997 11.1 2.87 (3) 14 .41 (3)
11/30/1998 11.1 4.92 34 .70
11/30/1999 11.12 4.47 48 .71
12/31/1999 11.04 .43 (3) 48 .06 (3)
Ratio
of net
income to Portfolio
Year average turnover
Ended (1) net assets rate
- --------- --------- ---------
Global Growth Fund (2)
Class 1
11/30/1997 .80 % (3) 13.22 % (3)
11/30/1998 1.14 25.56
11/30/1999 1.01 25.84
12/31/1999 .06 (3) 2.65 (3)
Class 2
11/30/1997 .56 (3) 13.22 (3)
11/30/1998 .87 25.56
11/30/1999 .77 25.84
12/31/1999 .04 (3) 2.65 (3)
Global Small
Capitalization Fund (4)
Class 1
11/30/1998 .86 % (3) 28.20 % (3)
11/30/1999 .53 80.55
12/31/1999 - (3) 6.65 (3)
Class 2
11/30/1998 .63 (3) 28.20 (3)
11/30/1999 .25 80.55
12/31/1999 - (3) 6.65 (3)
Growth Fund
Class 1
11/30/1995 .92 35.47
11/30/1996 .61 30.88
11/30/1997 .59 45.14
11/30/1998 .38 49.91
11/30/1999 .19 36.81
12/31/1999 .01 (3) 2.55 (3)
Class 2 (5)
11/30/1997 .08 (3) 45.14
11/30/1998 .15 49.91
11/30/1999 - 36.81
12/31/1999 - (3) 2.55 (3)
International Fund
Class 1
11/30/1995 2.64 24.66
11/30/1996 1.99 32.08
11/30/1997 1.56 50.12
11/30/1998 1.36 34.08
11/30/1999 1.18 41.99
12/31/1999 .03 (3) 1.45 (3)
Class 2 (5)
11/30/1997 .34 (3) 50.12
11/30/1998 1.03 34.08
11/30/1999 .84 41.99
12/31/1999 .01 (3) 1.45 (3)
New World Fund (6)
Class 1
11/30/1999 1.02 (3) .81 (3)
12/31/1999 .18 (3) 2.57 (3)
Class 2
11/30/1999 .95 (3) .81 (3)
12/31/1999 .16 (3) 2.57 (3)
Growth Income Fund
Class 1
11/30/1995 2.70 26.91
11/30/1996 2.26 31.27
11/30/1997 2.01 37.55
11/30/1998 1.74 42.72
11/30/1999 1.75 40.63
12/31/1999 .18 (3) 2.69 (3)
Class 2 (5)
11/30/1997 .93 (3) 37.55
11/30/1998 1.02 42.72
11/30/1999 1.50 40.63
12/31/1999 .16 (3) 2.69 (3)
Asset Allocation Fund
Class 1
11/30/1995 4.11 39.89
11/30/1996 3.88 50.62
11/30/1997 3.63 34.14
11/30/1998 3.63 27.97
11/30/1999 3.50 36.27
12/31/1999 .31 (3) 1.42 (3)
Class 2 (5)
11/30/1997 1.81 (3) 34.14
11/30/1998 3.39 27.97
11/30/1999 3.24 36.27
12/31/1999 .29 (3) 1.42 (3)
Bond Fund (7)
Class 1
11/30/1996 6.18 % (3) 32.83 % (3)
11/30/1997 6.63 52.93
11/30/1998 6.89 61.54
11/30/1999 7.17 38.22
12/31/1999 .65 (3) 5.48 (3)
Class 2 (5)
11/30/1997 3.50 (3) 52.93
11/30/1998 6.62 61.54
11/30/1999 6.94 38.22
12/31/1999 .63 (3) 5.48 (3)
High-Yield Bond Fund
Class 1
11/30/1995 10.12 % 31.73 %
11/30/1996 9.27 44.81
11/30/1997 8.92 50.22
11/30/1998 8.66 65.80
11/30/1999 9.13 30.72
12/31/1999 .79 (3) 1.36 (3)
Class 2 (5)
11/30/1997 4.92 (3) 50.22
11/30/1998 8.60 65.80
11/30/1999 8.86 30.72
12/31/1999 .77 (3) 1.36 (3)
U.S. Government/AAA-Rated
Securities Fund
Class 1
11/30/1995 7.37 % 30.11 %
11/30/1996 7.33 30.45
11/30/1997 6.73 53.80
11/30/1998 6.11 89.25
11/30/1999 6.06 58.30
12/31/1999 .52 (3) 1.86 (3)
Class 2 (5)
11/30/1997 3.45 (3) 53.80
11/30/1998 5.68 89.25
11/30/1999 5.83 58.30
12/31/1999 .51 (3) 1.86 (3)
Cash Management Fund
Class 1
11/30/1995 5.37 -
11/30/1996 4.94 -
11/30/1997 4.99 -
11/30/1998 5.07 -
11/30/1999 4.65 -
12/31/1999 .45 (3) -
Class 2 (5)
11/30/1997 2.80 (3) -
11/30/1998 4.75 -
11/30/1999 4.40 -
12/31/1999 .42 (3) -
1 For the fiscal years ended November 30, 1995 through 1999 and the One month ended
December 31,1999
2 Commenced operations April 30, 1997
3 Based on operations for the period shown and, accordingly, not representative of a
full year.
4 Commenced operations April 30, 1998.
5 Shares offered for sale commencing April 30, 1997.
6 Commenced operations June 17, 1999
7 Commenced operations January 2, 1996
See Notes to Financial Statements
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of
American Variable Insurance Series:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investment portfolios, and the related statements of
operations and of changes in net assets and the per-share data and ratios
present fairly, in all material respects, the financial position of the Global
Growth Fund, the Global Small Capitalization Fund, the Growth Fund, the
International Fund, the New World Fund, the Growth-Income Fund, the Asset
Allocation Fund, the Bond Fund, the High-Yield Bond Fund, the U.S.
Government/AAA-Rated Securities Fund and the Cash Management Fund (constituting
the American Variable Insurance Series, hereafter referred to as the "Series")
at December 31, 1999 and at November 30, 1999, the results of each of their
operations, the changes in each of their net assets, and the per-share data and
ratios for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial statements
and per-share data and ratios (hereafter referred to as "financial statements")
are the responsibility of the Series' management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities owned at December 31, 1999 and at November 30, 1999
by correspondence with the custodian, provide a reasonable basis for the
opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
January 18, 2000
[The American Funds Insurance Series (SM)]
AMERICAN VARIABLE INSURANCE SERIES
BOARD OF TRUSTEES
LEE A. AULT III
Los Angeles, California
Private investor and corporate director;
former Chief Executive Officer, Telecredit, Inc.
H. FREDERICK CHRISTIE
Rolling Hills Estates, California
Private investor; former President
and Chief Executive Officer,
The Mission Group; former President,
Southern California Edison Company
CHARLES H. BLACK, a founding
member of the Board, retired at
the end of 1999. The Trustees wish
to thank him for his years of
leadership and contributions to the
series.
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
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
(financial management consulting)
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
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
MICHAEL J. DOWNER
Los Angeles, California
Senior Vice President of the series
Senior Vice President - Fund Business
Management Group,
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
DONALD D. O'NEAL
San Francisco, California
Senior Vice President of the series
Vice President, Capital Research and
Management Company
ALAN N. BERRO
Los Angeles, California
Vice President of the series
Senior Vice President,
Capital Research 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
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
DAVID A. PRITCHETT
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
400 South Hope Street
Los Angeles, California 90071-2889
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 March 31, 2000, this report must be accompanied by a
statistical update for your variable annuity for the most recently completed
calendar quarter.
Printed on recycled paper
Litho in USA BG/L/4253
(c)2000 American Funds Distributors, Inc.
Lit. No. VI-011-0100
