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Previous: FIDELITY ADVISOR SERIES VIII, 497, 2000-09-08 |
Next: AMERICAN VARIABLE INSURANCE SERIES, N-30D, 2000-09-08 |
[The American Funds Insurance Series(SM)]
American Funds Insurance Series
2000 Semi-Annual Report
for the six months ended June 30
]cover: one red apple]
Results at a Glance
American Funds Insurance Series(SM)
(formerly known as American Variable Insurance Series(r))
American Funds Insurance Series is the underlying investment vehicle for
several variable annuities and insurance products. The investment adviser to
American Funds Insurance Series is Capital Research and Management Company. For
nearly seven decades, Capital Research has invested with a long-term focus
based on thorough research and attention to risk.
Returns for periods ended June 30, 2000
<TABLE>
<CAPTION>
5-Year 10-Year
Average Average
Annual Annual
6-Month 1-Year Compound Compound
Total Return Total Return Return Return
<S> <C> <C> <C> <C> <C>
Global Growth Fund Class 1 +2.14% +45.57% +32.41%* -
since 4/30/97) Class 2 +2.02 +45.18 +32.09* -
Global Small Capitalization Fund Class 1 +2.47 +43.88 +38.21* -
(since 4/30/98) Class 2 +2.35 +43.53 +37.91* -
Growth Fund Class 1 +15.61 +46.68 +31.56 +22.37%
Class 2 +15.48 +46.37 +31.24 +22.05
International Fund Class 1 -0.09 +50.22 +23.82 +15.58
Class 2 -0.18 +49.93 +23.53 +15.29
New World Fund (since Class 1 -1.57 +16.26 +16.00* -
6/17/99)
Class 2 -1.66 +16.03 +15.77* -
Growth-Income Fund Class 1 +2.65 -0.16 +17.96 +14.77
Class 2 +2.51 -0.45 +17.66 +14.45
Asset Allocation Fund Class 1 -0.54 -1.30 13.58 +12.17
Class 2 -0.63 -1.52 +13.30 +11.86
Bond Fund (since 1/2/96) Class 1 +1.71 +3.63 +5.50* -
Class 2 +1.58 +3.38 +5.25* -
High-Yield Bond Fund Class 1 -0.01 +1.90 +7.73 +9.76
Class 2 -0.18 +1.59 +7.45 +9.42
U.S. Government/AAA-Rated Class 1 +3.79 +4.46 +5.75 +7.31
Securities Fund Class 2 +3.58 +4.22 +5.47 +6.99
Cash Management Fund+ Class 1 +2.85 +5.48 +5.18 +4.79
Class 2 +2.73 +5.13 +4.90 +4.50
</TABLE>
*Reflects result for the lifetime of the fund, which is shorter than the stated
period.
+As of June 30, 2000, the Cash Management Fund's seven-day annualized yield was
6.13% for
Class 1 shares and 5.89% for Class 2 shares.
Class 2 shares began operations on April 30, 1997. Results that encompass
periods before that date assume a hypothetical investment in Class 1 shares and
include deduction of the 0.25% annual expense for Class 2 shares under the
series' Plan of Distribution. The variable annuity 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. Investments outside the United States, especially those in developing
countries, involve additional risks, such as currency fluctuations. High-yield
bonds are subject to greater fluctuations in value and risk of loss of income
and principal, as more fully described in the prospectus.
[Begin sidebar]
Global Growth Fund
Where the fund's assets were invested
based on total net assets as of June 30, 2000
<TABLE>
<CAPTION>
Percent of
Net Assets
<S> <C>
The Americas
United States 27.7%
Canada 3.6
Brazil 1.7
Mexico 1.4
Argentina .1
34.5
Europe
United Kingdom 7.8
Germany 3.5
Netherlands 1.9
Sweden 1.8
France 1.4
Italy 1.2
Spain 1.2
Finland 1.2
Norway 1.0
Portugal .9
Ireland .6
Belgium .4
Switzerland .4
Luxembourg .3
Greece .1
23.7
Asia/Pacific Rim
Japan 10.6
Australia 2.9
Taiwan 2.9
South Korea 2.4
Hong Kong 1.4
India 1.2
People's Republic of China .8
Singapore .6
New Zealand .1
22.9
Other
South Africa .9
Cash & Equivalents 18.0
Total 100.0%
</TABLE>
[End sidebar]
Fellow Investors:
This report covers the first half of the year 2000 - the six months ended June
30 - for American Funds Insurance Series, which serves as the underlying
investment vehicle for the Hartford Leaders variable annuities and other
insurance products.
This was a turbulent time in the stock and bond markets with a severe
correction in the tech-dominated Nasdaq and a downturn in the broader markets.
While the major U.S. indexes rebounded, several ended the first half of the
year below where they began. Investors' infatuation with Internet and high-tech
stocks, which had fueled much of the Nasdaq market's rise, reached its zenith
on March 10. From that high, the Nasdaq Composite Index lost 37.3% and then
rebounded, ending the six months down 2.5%. The unmanaged Standard & Poor's 500
Composite Index, which tracks the largest U.S. stocks, lost 0.4% during the
six-month period. International equity markets, as measured by the Morgan
Stanley Capital International EAFE(r) (Europe, Australasia, Far East) Index,
were down 4.0%.
Lower stock prices can be traced, in part, to rising short-term interest rates
and investors' growing impatience with high-tech and Internet-related companies
that have no earnings. By June 30, the Federal Reserve Board had raised the
federal funds rate - the rate banks charge each other on overnight loans - six
times within 12 months, three times since the beginning of the year.
The bond market had a mixed reaction to the Fed's actions. While high-yield and
short-term securities declined, long-term U.S. Treasury bonds gained value. The
unmanaged Salomon Smith Barney Broad Investment-Grade (BIG) Bond Index gained
3.9%, while the unmanaged Salomon Smith Barney Long-Term High-Yield Index lost
2.0%.
The Fed's actions slowed economic expansion and hurt stock prices, although
prices of many so-called "old economy" companies rose as investors appeared to
rediscover the value of earnings. In this mixed environment, it is not
surprising that results varied among the funds in the series. Here are brief
comments about each of the funds. The results are for Class 2 shares; results
for Class 1 shares are shown on the opposite page.
Global Growth Fund gained 2.0% despite the correction in stock markets around
the world. Technology, media and telecommunications stocks, which had been
leaders in the recent past and are some of the fund's largest holdings, bore
the brunt of the downturn. However, we believe that the lower prices will
create good long-term opportunities. We reduced our concentration of European
stocks slightly from 25.1% to 23.7% and our holdings in the Asia/Pacific Rim
region declined from 29.9% to 22.9%. Our reserve of cash and equivalents almost
doubled from 9.1% to 18.0% of assets.
[Begin sidebar]
Global Small Capitalization Fund
Where the fund's assets were invested
based on total net assets as of June 30, 2000
<TABLE>
<CAPTION>
Percent of
Net Assets
<S> <C>
The Americas
United States 34.8%
Canada 3.8
Brazil 1.8
Mexico .9
Argentina .3
Chile .2
41.8
Asia/Pacific Rim
Japan 14.0
Taiwan 4.6
Hong Kong 3.8
Singapore 1.6
Australia 1.3
Indonesia 1.0
South Korea .9
New Zealand .7
People's Republic of China .3
Thailand .2
Philippines .1
India .1
28.6
Europe
United Kingdom 4.1
Sweden 3.5
France 2.1
Germany 1.6
Netherlands 1.4
Finland 1.3
Luxembourg 1.3
Ireland .9
Belgium .6
Switzerland .3
Spain .2
Denmark .2
Turkey .2
17.7
Other
Israel 1.4
Cash & Equivalents 10.5
Total 100.0%
</TABLE>
[End sidebar]
Global Small Capitalization Fund posted a 2.3% return. As we have noted, this
was a particularly volatile period for global equities and small-company stocks
in particular. While few investors welcome volatility, those who invest in
Global Small Capitalization Fund should be aware that the prices of
small-company stocks historically have varied more than those of large
companies. Although they are more volatile, we believe that over long periods
small-company stocks offer investors good opportunities for gain. During the
first six months of this fiscal year, the allocation of investments remained
stable with 41.8% of assets in the Americas, 28.6% in the Asia/Pacific Rim
region and 17.7% in Europe.
Growth Fund's 15.5% gain for the period was the highest in the series. Although
many technology stocks lost ground during the period, we sold many tech
holdings before they felt the full brunt of the correction. The fund maintained
a position in the stocks of some well-established high-tech companies, such as
Intel, which rose 62.4%. In addition, Texas Instruments, which was the
second-largest holding at the beginning of the period, was up 41.8%. Viacom,
which merged with CBS and was the largest holding, rose 13.4%.
International Fund declined 0.2% as investors around the globe reacted to
higher U.S. interest rates and the sharp downturn in U.S. equity markets. The
fund's largest exposure remains Europe with 45.6% of assets, followed by the
Asia/Pacific Rim region at 35.6%. Some of the fund's biggest gainers included
Ericsson, the fifth-largest holding, which rose 22.9%, and Check Point Software
Technologies, the fourth-largest holding, which was up 113.1%. Not all of the
fund's holdings gained value, of course. Telefonica, the eighth-largest, fell
15.2% and Sony, the sixth-largest holding when the period began, was down
68.6%.
New World Fund, the series' newest fund, completed its first full year of
operations on June 17. It has been quite a year. The fund gained 16.0% in the
12 months ended June 30, but declined 1.7% during the current fiscal period. In
comparison, the Morgan Stanley Capital International (MSCI) All Country World
Free Index fell 2.7% over the six months ended June 30. The unmanaged MSCI
Emerging Markets Free Index fell 8.0%. A key element of New World Fund's
strategy is its investments in well-known companies based in developed markets
that get a significant portion of their revenue from the developing world. When
New World Fund was launched, we believed its holdings in global companies such
as Coca-Cola and Avon Products would help reduce volatility. We did not expect
to be put to the test so quickly. We're pleased, however, that while the fund
is down for the six-month period, it held up better than its benchmarks during
this volatile period.
[Begin sidebar]
New World Fund
Where the fund's assets were invested
based on total net assets as of June 30, 2000
<TABLE>
<CAPTION>
Percent of
Net Assets
<S> <C>
Asia/Pacific Rim
South Korea 9.3%
Japan 5.0
India 2.7
Hong Kong 2.6
Taiwan 1.9
Singapore 1.9
People's Republic of China 1.8
Philippines 1.8
Australia 1.1
Indonesia .5
Thailand .5
29.1
The Americas
United States 9.6
Brazil 8.9
Mexico 5.5
Argentina 2.2
Panama .7
Chile .6
Venezuela .5
Canada .5
28.5
Europe
United Kingdom 2.9
Turkey 2.1
Netherlands 1.8
Poland 1.6
Norway 1.2
Hungary 1.0
Republic of Croatia .9
Russia .8
Switzerland .8
Sweden .7
France .6
Ireland .3
Greece .2
Spain .1
15.0
Other
Israel 5.1
South Africa 2.3
7.4
Cash & Equivalents 20.0
Total 100.0%
</TABLE>
[End sidebar]
Growth-Income Fund, which primarily focuses on dividend-paying companies with
growth potential, gained 2.5% during the recent six months, while the broader
market, as measured by the unmanaged S&P 500, lost 0.4%. In recent quarters,
when the stock market was being propelled by high-tech stocks, we took a
cautious stance. We believe investors have again begun to appreciate the value
of dividends and earnings, which are cornerstones of the fund's investment
philosophy. We have increased our holdings in merchandising and health and
personal care while reducing our exposure to data processing stocks.
Asset Allocation Fund declined 0.6% during the period. With 33.3% of assets in
bonds and 5.0% in cash and equivalents, the fund was hurt by higher interest
rates that affected the value of some fixed-income securities and many stocks.
While some of the fund's equity investments fared well - Corning, our largest
holding at the end of the period, was up 109.3% - others lost ground, including
Computer Associates International, our sixth-largest holding, which declined
26.8%. It was difficult for the fund's portfolio as a whole to overcome the
headwind of higher interest rates and lower stock prices.
Bond Fund earned a 1.6% return. The fund benefited from its holdings in
high-grade government bonds, which fared well during the period. The fund also
holds some high-yield securities, which were hurt by the stock market's
downturn and prospects for an economic slowdown.
High-Yield Bond Fund declined 0.2% during the period as higher short-term
interest rates, lower stock prices and a slowing economy undermined the prices
of lower quality bonds. The fund's holdings in media and wireless
telecommunications companies held up relatively well during the downturn.
[Begin sidebar]
International Fund
Where the fund's assets were invested
based on total net assets as of June 30, 2000
<TABLE>
<CAPTION>
Percent of
Net Assets
<S> <C>
Europe
United Kingdom 10.5%
France 6.0
Germany 5.6
Italy 5.2
Netherlands 4.0
Finland 3.8
Spain 3.2
Sweden 3.0
Switzerland 2.0
Norway 1.1
Ireland .7
Portugal .3
Luxembourg .2
45.6
Asia/Pacific Rim
Japan 21.3
Australia 4.6
South Korea 2.9
Taiwan 2.6
People's Republic of China 1.6
Hong Kong 1.0
Singapore .5
Malaysia .4
Philippines .3
India .3
Thailand .1
35.6
The Americas
Mexico 4.4
Canada 3.0
Argentina .3
8.3
Other
Israel 2.4
South Africa .7
Polynational .1
3.2
Cash & Equivalents 7.3
Total 100.0%
</TABLE>
[End sidebar]
U.S. Government/AAA-Rated Securities Fund gained 3.6% during the period, the
second-highest return in the series. Although the Fed pushed short-term rates
higher, the prices of long-term U.S. government bonds were influenced by other
factors, including supply and demand. Prices of U.S. Treasury bonds rose when
the Treasury Department announced it would no longer issue 30-year bonds. The
fund has 17.7% of its assets in U.S. Treasury bonds and 19.4% in securities
issued by the Government National Mortgage Association, which are backed by the
full faith and credit of the U.S. government.
Cash Management Fund provided a six-month return of 2.7%, reflecting higher
yields on short-term instruments. The yields rose as the Fed pushed short-term
rates higher. The fund's assets are concentrated in top-grade commercial paper,
with some investments in U.S. government agency bills. As this concentration
suggests, the fund is managed for stability and a reasonable rate of return,
which can make it an important diversification tool for your portfolio.
We look forward to reporting to you again in six months.
Cordially,
/S/ James F. Rothenberg
James F. Rothenberg
Chairman of the Board
/s/ James K. Dunton
James K. Dunton
President
August 16, 2000
Thomas E. Terry, who has served American Funds Insurance Series in various
capacities, including chairman and president, since the series' inception, has
retired from the Board. We wish to thank him for his many contributions.
<TABLE>
GLOBAL GROWTH FUND
Investments primarily in stocks
INVESTMENT PORTFOLIO
June 30, 2000 (Unaudited)
Percent of
Largest Individual Equity Securities Net Assets
<S> <C>
Pfizer Inc 1.76%
VIA Technologies 1.69
Vodafone AirTouch PLC 1.53
AstraZeneca PLC 1.49
Samsung Electronics Co., Ltd. 1.40
Viacom Inc. 1.31
Micron Technology 1.26
Rakuten 1.19
Taiwan Semiconductor Manufacturing Co. Ltd. 1.18
Infosys Technologies Ltd. 1.18
The Americas 34.54%
Europe 23.72
Asia/Pacific 22.86
Other Countries 0.93
Cash & Equivalents 17.95
</TABLE>
<TABLE>
Global Growth Fund
Investment Portfolio, June 30, 2000 Unaudited
<S> <C> <C> <C>
Number of Market Percent
Shares Value of Net
EQUITY SECURITIES (common and preferred stocks) (000) Assets
ELECTRONIC COMPONENTS - 12.84%
VIA Technologies, Inc. (Taiwan) (1) 1,065,000 $16,505 1.69
Samsung Electronics Co., Ltd. (South Korea) 41,227 13,645 1.40
Micron Technology, Inc. (USA) (1) 140,000 12,329 1.26
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) (1) 2,420,000 11,527 1.18
Microchip Technology Inc. (USA) (1) 165,000 9,614 .98
Texas Instruments Inc. (USA) 119,800 8,229 .84
Murata Manufacturing Co., Ltd. (Japan) 57,000 8,170 .84
Rohm Co., Ltd. (Japan) 23,000 6,714 .69
Infineon Technologies AG (Germany) (1) 78,000 6,183 .63
Intel Corp. (USA) 45,000 6,016 .62
Keyence Corp. (Japan) 15,900 5,240 .54
Redback Networks Inc. (USA) (1) 25,000 4,450 .46
JDS Uniphase Corp. (USA) (1) 35,000 4,195 .43
Venture Manufacturing (Singapore) Ltd (Singapore) 380,000 3,872 .40
Samsung Electro-Mechanics Co. (South Korea) (1) 55,000 3,448 .35
Applied Micro Circuits Corp. (USA) (1) 25,000 2,469 .25
EPCOS AG (Germany) (1) 21,000 2,114 .22
Cypress Semiconductor Corp. (USA) (1) 15,000 634 .06
BROADCASTING & PUBLISHING - 11.57%
Viacom Inc., Class B (USA) (1) 186,777 12,736 1.31
United Pan-Europe Communications NV (Netherlands) (1) 360,000 9,417 .96
Clear Channel Communications, Inc. (USA) (1) 120,000 9,000 .92
Time Warner Inc. (USA) 118,200 8,983 .92
Fuji Television Network Inc. (Japan) 486 7,597 .78
News Corp. Ltd. (Australia) 511,871 7,032 .72
Grupo Televisa, SA, ordinary participation 100,000 6,894 .71
certificates (ADR) (Mexico) (1)
Globo Cabo, preferred nominative (ADR) (Brazil) (1) 421,000 5,841 .60
Fox Entertainment Group, Inc., Class A (USA) (1) 185,000 5,619 .58
ProSieben Media AG (Germany) 36,000 4,504 .46
Rogers Communications Inc., Class B (Canada) (1) 125,000 3,542 .36
PRIMEDIA Inc. (USA) (1) 150,000 3,412 .35
SBS Broadcasting SA (Luxembourg) (1) 60,000 3,270 .34
MIH Ltd., Class A (South Africa) (1) 105,000 3,153 .32
Austar United Communications Ltd. (Australia) (1) 780,000 2,630 .27
Carlton Communications PLC (United Kingdom) 200,000 2,576 .26
Nippon Television Network Corp. (Japan) (1) 3,500 2,281 .23
M-Web Holdings Ltd. (South Africa) (1) 450,000 1,833 .19
KirchMedia GmbH & Co. KGaA (Germany) (1) (2) (3) 42,000 1,759 .18
UnitedGlobalCom, Inc., Class A (USA) (1) 35,000 1,636 .17
Sogecable, SA (Spain) (1) 45,000 1,600 .16
Crown Media Holdings, Inc., Class A (USA) (1) 100,000 1,531 .16
Independent News & Media PLC (Ireland) 400,000 1,452 .15
John Fairfax Holdings Ltd. (Australia) 515,000 1,446 .15
NTL Inc. (USA) (1) 18,609 1,114 .11
Washington Post Co., Class B (USA) 2,000 956 .10
Sinclair Broadcast Group, Inc., Class A (USA) (1) 53,800 592 .06
Insight Communications Co., LP, Class A (USA) (1) 20,000 313 .03
Ziff-Davis Inc. (USA) (1) 21,900 197 .02
HEALTH & PERSONAL CARE - 9.17%
Pfizer Inc (USA) 357,450 17,158 1.76
AstraZeneca PLC (United Kingdom) 309,365 14,446
AstraZeneca Group PLC (ADR) 3,000 140 1.49
Avon Products, Inc. (USA) 162,900 7,249 .74
Pharmacia Corp. (formerly Monsanto Co.) (USA) 125,000 6,461 .66
Fujisawa Pharmaceutical Co. Ltd. (Japan) 150,000 6,060 .62
Shionogi & Co., Ltd. (Japan) 276,000 5,237 .54
Forest Laboratories, Inc. (USA) (1) 44,000 4,443 .45
Bristol-Myers Squibb Co. (USA) 75,000 4,369 .45
Cardinal Health, Inc. (USA) 55,000 4,070 .42
QLT Inc. (formerly QLT PhotoTherapeutics Inc.) (Canada) (1) 50,000 3,866 .40
Elan Corp., PLC (ADR) (Ireland) (1) 70,000 3,391 .35
Guidant Corp. (USA) (1) 66,000 3,267 .33
Aventis SA (France) 35,000 2,555 .26
Luxottica Group SpA (ADR) (Italy) 200,000 2,437 .25
CSL Ltd. (Australia) 74,539 1,471
CSL Ltd. (1) 25,100 495 .20
Glaxo Wellcome PLC (United Kingdom) 52,900 1,545 .16
Omnicare, Inc. (USA) 97,700 885 .09
BUSINESS SERVICES - 8.53%
Rakuten, Inc. (Japan) (1) 191 11,601 1.19
ADVA AG Optical Networking (Germany) (1) 13,600 7,728 .79
Fujitsu Support and Service Inc. (Japan) 74,000 7,317 .75
Cendant Corp. (USA) (1) 356,000 4,984 .51
NDS Group PLC, Class A (ADR) (United Kingdom) (1) 68,000 4,148 .43
Reuters Group PLC (United Kingdom) 236,000 4,031 .41
Ubizen (Belgium) (1) 109,200 3,859 .40
Vivendi SA (France) 38,617 3,409 .35
China.com Corp. (Hong Kong) (1) 162,800 3,327 .34
America Online, Inc. (USA) (1) 60,000 3,165 .32
Adecco SA (Switzerland) 3,500 2,975 .30
C Technologies AB (Sweden) (1) 131,200 1,818
C Technologies AB (1) (3) 68,800 858 .27
Brambles Industries Ltd. (Australia) 74,600 2,288 .23
Yahoo! Inc. (USA) (1) 17,400 2,155 .22
Sonae.com, SGPS, SA (Portugal) (1) 200,000 1,954 .20
Securitas AB, Class B (Sweden) 90,000 1,912 .20
GFT Technologies AG (Germany) (1) 9,000 1,719 .18
Freeserve PLC (United Kingdom) (1) 314,400 1,548 .16
WEB.DE AG (Germany) (1) 70,000 1,511 .15
Sabre Group Holdings, Inc., Class A (USA) (1) 50,000 1,425 .15
Terra Networks, SA (Spain) (1) 36,300 1,404 .14
LookSmart, Ltd. (USA) (1) 550,000 1,394 .14
Hays PLC (United Kingdom) 220,000 1,229 .13
Waste Management, Inc. (USA) 60,000 1,140 .12
Freedomland ITN SpA (Italy) (1) 24,300 1,071 .11
OpenTV Corp., Class A (British Virgin Islands) (1) 23,000 1,032 .11
PT Multimedia.com - Servicos de Acesso a 118,000 905 .09
Internet, SGPS, SA (Portugal) (1)
interQ Inc. (Japan) (1) 18,800 841 .09
Securicor Group PLC (United Kingdom) 150,000 310 .03
lastminute.com PLC (United Kingdom) (1) 55,900 177 .02
WIRELESS TELECOMMUNICATION SERVICES - 4.45%
Vodafone AirTouch PLC (United Kingdom) 3,430,440 13,880
Vodafone AirTouch PLC (ADR) 25,000 1,036 1.53
China Telecom (Hong Kong) Ltd. (ADR) 31,000 5,512
(People's Republic of China) (1)
China Telecom (Hong Kong) Ltd. (1) 270,000 2,381 .81
Tele Nordeste Celular Participacoes SA, 78,900 5,464 .56
preferred nominative (ADR) (Brazil)
Tele Celular Sul Participacoes SA, preferred 106,500 4,819 .50
nominative (ADR) (Brazil)
DDI Corp. (Japan) 480 4,611 .47
Crown Castle International Corp. (USA) (1) 96,700 3,529 .36
Telesystem International Wireless Inc. (Canada) (1) 80,000 1,465 .15
Stet Hellas Telecommunications SA (ADR) (Greece) (1) 35,300 702 .07
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.43%
Telecom Italia SpA, nonconvertible savings (Italy) 1,034,000 6,846
Telecom Italia SpA 110,000 1,506 .86
Deutsche Telekom AG (Germany) 83,500 4,753 .49
Korea Telecom Corp. (ADR) (South Korea) 85,000 4,112 .42
Telefonica, SA (ADR) (Spain) (1) 52,527 3,365 .34
AT&T Corp. (USA) 90,000 2,846 .29
Nippon Telegraph and Telephone Corp. (Japan) 190 2,523 .26
VersaTel Telecom International NV (Netherlands) (1) 55,000 2,311 .24
Kingston Communications (HULL) PLC (United Kingdom) 220,000 2,167 .22
CompleTel Europe NV (Netherlands) (1) 164,000 2,036 .21
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 32,000 1,828 .19
Cable & Wireless Optus Ltd. (Australia) (1) 600,000 1,785 .18
Cable and Wireless PLC (United Kingdom) 97,633 1,656 .17
Telecom Argentina STET-France Telecom SA, 47,000 1,292 .13
Class B (ADR) (Argentina)
eircom PLC (Ireland) 437,500 1,170 .12
One.Tel Ltd. (Australia) 1,500,000 986 .10
Global Crossing Ltd. (USA - Incorporated in Bermuda) (1) 26,000 684 .07
Global TeleSystems Group, Inc. (USA) (1) 56,000 676 .07
FLAG Telecom Holdings Ltd. (Bermuda) (1) 36,400 541 .06
Cia. de Telecomunicaciones de Chile SA (ADR) (Chile) 6,030 109 .01
ELECTRICAL & ELECTRONICS - 3.58%
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 566,000 11,220 1.15
Nokia Corp., Class A (ADR) (Finland) 190,000 9,488
Nokia Corp. 9,200 470 1.02
Nortel Networks Corp. (Canada) 133,600 9,118 .94
Cisco Systems, Inc. (USA) (1) 40,000 2,542 .26
Lucent Technologies Inc. (USA) 35,000 2,074 .21
LEISURE & TOURISM - 3.45%
Walt Disney Co. (USA) 175,000 6,792 .70
SFX Entertainment, Inc., Class A (USA) (1) 140,000 6,344 .65
NH Hoteles, SA (Spain) (1) 450,000 5,178 .53
Seagram Co. Ltd. (Canada) 80,000 4,640 .48
Granada Group PLC (United Kingdom) 430,000 4,301 .44
Carnival Corp. (USA) 140,000 2,730 .28
StudioCanal (France) (1) 150,000 1,604 .16
Village Roadshow Ltd., Class A, 5.50% preferred (Australia) 1,131,601 1,257 .13
GO.com (USA) (1) 69,000 824 .08
BANKING - 2.80%
Bank of America Corp. (USA) 145,000 6,235 .64
Bank of Nova Scotia (Canada) 161,000 3,948 .41
Industrial Bank of Japan, Ltd. (Japan) 425,000 3,218 .33
Shinhan Bank (South Korea) 273,020 2,571 .26
ABN AMRO Holding NV (Netherlands) 96,728 2,371 .24
Washington Mutual, Inc. (USA) 80,000 2,310 .24
DBS Group Holdings Ltd. (Singapore) 151,190 1,943 .20
Lloyds TSB Group PLC (United Kingdom) 200,000 1,891 .19
Sakura Bank, Ltd. (Japan) 200,000 1,381 .14
Toronto-Dominion Bank (Canada) 39,200 953 .10
Westpac Banking Corp. (Australia) 64,348 463 .05
DATA PROCESSING & REPRODUCTION - 2.46%
Oracle Corp. (USA) (1) 120,000 10,087 1.03
Microsoft Corp. (USA) (1) 86,000 6,880 .70
Documentum, Inc. (USA) (1) 35,000 3,128 .32
Computer Associates International, Inc. (USA) 40,000 2,048 .21
PeopleSoft, Inc. (USA) (1) 90,000 1,507 .16
Storage Technology Corp. (USA) (1) 35,800 392 .04
MERCHANDISING - 2.13%
Dixons Group PLC (United Kingdom) (1) 1,068,571 4,356 .45
EM.TV & Merchandising AG (Germany) 65,000 3,830 .39
Kingfisher PLC (United Kingdom) 380,000 3,464 .36
Limited Inc. (USA) 160,000 3,460 .35
Woolworths Ltd. (Australia) 420,385 1,548 .16
Wal-Mart de Mexico, SA de CV (formerly Cifra, 60,000 1,395 .14
SA de CV), Class V (ADR) (Mexico) (1)
Consolidated Stores Corp. (USA) (1) 83,700 1,004 .10
Ito-Yokado Co., Ltd. (Japan) 16,000 961 .10
Sunglass Hut International, Inc. (USA) (1) 89,000 732 .08
ELECTRONIC INSTRUMENTS - 1.54%
Applied Materials, Inc. (USA) (1) 120,000 10,875 1.11
KLA-Tencor Corp. (USA) (1) 60,000 3,514 .36
Research In Motion Ltd. (Canada) (1) 15,000 676 .07
IT CONSULTING & SERVICES - 1.48%
Infosys Technologies Ltd. (ADR) (India) 65,000 11,521 1.18
Dimension Data Holdings Ltd. (South Africa) (1) 350,000 2,898 .30
ENERGY SOURCES - 1.32%
Norsk Hydro AS (Norway) 147,550 6,197 .64
Broken Hill Proprietary Co. Ltd. (Australia) 330,000 3,893 .40
Woodside Petroleum Ltd. (Australia) 142,000 1,103 .11
TOTAL FINA SA, Class B (ADR) (France) 10,000 768 .08
"Shell" Transport and Trading Co., PLC, 10,000 499 .05
New York registered (United Kingdom)
Fletcher Challenge Energy (New Zealand) 125,848 410 .04
MULTI-INDUSTRY - 1.28%
PT Multimedia - Seervicos de Telecomunicacoes 118,000 5,860 .60
e Multimedia, SGFS, SA (Portugal) (1)
Orkla AS (Norway) 172,285 3,276 .33
First Pacific Co. Ltd. (Hong Kong) 6,205,144 2,109 .22
Lend Lease Corp. Ltd. (Australia) 100,000 1,273 .13
APPLIANCES & HOUSEHOLD DURABLES - 1.14%
THOMSON multimedia (France) (1) 86,600 5,607 .57
Sony Corp. (Japan) 59,200 5,519 .57
METALS: NONFERROUS - 1.13%
Alcoa Inc. (USA) 281,000 8,149 .83
Billiton PLC (United Kingdom) 500,000 2,038 .21
Freeport-McMoRan Copper & Gold Inc., Class B (USA) (1) 87,100 806 .09
INDUSTRIAL COMPONENTS - 1.05%
THK Co., Ltd. (Japan) 120,000 6,057 .62
NGK Spark Plug Co., Ltd. (Japan) 270,000 4,172 .43
RECREATION & OTHER CONSUMER PRODUCTS - 0.95%
Shimano Inc. (Japan) 210,000 5,043 .52
EMI Group PLC (United Kingdom) 349,000 3,173 .32
Hasbro, Inc. (USA) 50,000 753 .08
edel music AG (Germany) (1) 16,000 303 .03
WHOLESALE & INTERNATIONAL TRADE - 0.82%
Li & Fung Ltd. (Hong Kong--Incorporated in Bermuda) 1,600,000 8,005 .82
AUTOMOBILES - 0.80%
Suzuki Motor Corp. (Japan) 338,000 4,354 .44
Volvo AB, Class B (Sweden) 90,000 1,958 .20
Honda Motor Co., Ltd. (Japan) 45,000 1,530 .16
AEROSPACE & MILITARY TECHNOLOGY - 0.65%
Bombardier Inc., Class B (Canada) 232,200 6,306 .65
FINANCIAL SERVICES - 0.58%
Capital One Financial Corp. (USA) 73,100 3,262 .33
MarketWatch.com, Inc. (USA) (1) 80,000 1,505 .15
Shohkoh Fund & Co., Ltd. (Japan) 4,000 900 .10
CHEMICALS - 0.46%
BOC Group PLC (United Kingdom) 145,000 2,087 .21
Valspar Corp. (USA) 40,000 1,350 .14
Dow Chemical Co. (USA) 35,000 1,057 .11
MACHINERY & ENGINEERING - 0.40%
Fuji Machine Mfg. Co., Ltd. (Japan) 46,000 2,413 .25
JOT Automation Group Oyj (Finland) 180,000 1,201 .12
Kvaerner ASA, Class A (Norway) (1) 28,840 303
Kvaerner ASA, Class A rights, expire 07/12/2000 (1) 28,840 16 .03
FOREST PRODUCTS & PAPER - 0.39%
Kimberly-Clark de Mexico, SA de CV (Mexico) 1,340,000 3,816 .39
MISCELLANEOUS MATERIALS & COMMODITIES - 0.32%
Sealed Air Corp. (USA) (1) 60,000 3,143 .32
TRANSPORTATION: AIRLINES - 0.24%
British Airways PLC (United Kingdom) 400,000 2,303 .24
FOOD & HOUSEHOLD PRODUCTS - 0.19%
Reckitt Benckiser PLC (United Kingdom) 165,490 1,856 .19
GOLD MINES - 0.13%
Anglogold Ltd. (South Africa) 30,000 1,227 .13
BEVERAGES & TOBACCO - 0.08%
Coca-Cola Amatil Ltd. (Australia) 400,000 776 .08
HEALTH CARE PROVIDERS & SERVICES - 0.07%
Quintiles Transnational Corp. (USA) (1) 50,000 706 .07
INSURANCE - 0.06%
Fairfax Financial Holdings Ltd. (Canada) (1) 5,600 613 .06
MISCELLANEOUS - 1.56%
Other equity securities in initial period of acquisition 15,279 1.56
TOTAL EQUITY SECURITIES (cost: $586,025,000) 800,757 82.05
Principal
Amount
(000)
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 17.42%
BMW US Capital Corp. 6.55%-6.60% due 7/26-8/16/2000 $18,300 18,181 1.86
Asset Securitization Corp. 6.53%-6.60% due 12,800 12,744 1.31
7/20-7/27/2000 (2)
Toyota Motor Credit Corp.:
6.50% due 7/5/2000 6,200 6,194
6.54% due 7/18/2000 (2) 5,700 5,681 1.21
American Honda Finance Corp. 6.60% due 8/31/2000 12,000 11,863 1.21
Rio Tinto America, Inc. 6.53%-6.56% due 7/12-7/13/2000 (2) 11,110 11,084 1.14
Associates First Capital Corp. 6.85% due 7/3/2000 11,090 11,084 1.14
Unilever Capital Corp. 6.45% due 7/14/2000 (2) 10,000 9,975 1.02
DaimlerChrysler NA Holdings Corp. 6.52% due 8/11/2000 9,907 9,832 1.01
Dresdner U.S. Finance Inc. 6.56% due 7/25/2000 9,600 9,556 .98
H.J. Heinz Co. 6.53% due 8/15/2000 9,500 9,421 .96
Bayer Corp. 6.57% due 7/18/2000 (2) 8,800 8,771 .90
Den Danske Bank AS 6.51% due 7/10/2000 7,800 7,786 .80
PepsiCo, Inc. 6.50% due 7/31/2000 6,850 6,812 .70
ExxonMobile Australia Pty Ltd. 6.52% due 7/17/2000 (2) 6,700 6,679 .68
British Telecommunications PLC 6.54% due 8/31/2000 6,400 6,327 .65
France Telecom, SA 6.51% due 7/6/2000 (2) 5,000 4,994 .51
KfW International Finance Inc. 6.45% due 7/20/2000 5,000 4,982 .51
American General Finance Corp. 6.56% due 7/10/2000 4,000 3,993 .41
Vattenfall Treasury AB 6.52% due 7/10/2000 3,300 3,294 .34
General Mills, Inc. 6.51% due 7/24/2000 800 797 .08
NON U.S. GOVERNMENT OBLIGATIONS - 0.62%
Canadian Wheat Board 6.51% due 7/19/2000 6,100 6,079 .62
Non-U.S. Currency - 0.02%
New Taiwanese Dollar NT$5,718 186 .02
TOTAL SHORT-TERM SECURITIES (cost: $176,311,000) 176,315 18.06
TOTAL INVESTMENT SECURITIES (cost:$762,336,000) 977,072 100.11
Excess of payables over cash asd receivables -1,090 0
NET ASSETS $975,982 100.00
(1) Non-income-producing security.
(2) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
(3) Valued under procedures established by
the Board of Trustees.
ADR = American Depositary Receipts
See Notes to Financial Statements
</TABLE>
Equity securities appearing in the portfolio since December 31, 1999
ADVA Optical Networking
America Online
Aventis
Bristol-Myers Squibb
Broken Hill Proprietary Co.
C Technologies
Cable & Wireless Optus
Carlton Communications
Cisco Systems
Clear Channel Communications
CompleTel Europe
Crown Media Holdings
CSL
Dimension Data Holdings
Dow Chemical
Elan
EM.TV & Merchandising
FLAG Telecom Holdings
Freedomland ITN
Fuji Machine Mfg.
GFT Technologies
Globo Cabo
Independent News & Media
Industrial Bank of Japan
Infineon Technologies
JDS Uniphase
JOT Automation Group
lastminute.com
Lloyds TSB Group
LookSmart
Lucent Technologies
M-Web Holdings
MarketWatch.com
Micron Technology
MIH
NH Hoteles
NTL
One.Tel
PT Multimedia.com - Servicos de Acesso a Internet
PT Multimedia - Servicos de Telecomunicacoes e Multimedia
Rakuten
Redback Networks
Research in Motion
Shinhan Bank
Shionogi
Sonae.com
Studiocanal
Ubizen
UnitedGlobalCom
VersaTel Telecom International
VIA Technologies
Volvo
WEB.DE
Equity securities eliminated from the portfolio since December 31, 1999
ADVANTEST
Banque Nationale de Paris
Bayerische Motoren Werke
Chartered Semiconductor Manufacturing
Equant
eXchange Holding
Genentech
Mandamus Fastigheter
Mannesmann
Momentum Business Applications
Nissan Motor
Partner Communications
Preussag
Quantum - DLT & Storage Systems
Rambus
Ratin
Rentokil Initial
Teleglobe
Unibail
United Parcel Service
<TABLE>
VARIABLE INSURANCE - Small Capitalization Fund
JUNE 30, 2000
<S> <C>
Investment Mix by Country:
The Americas 41.75%
Asia Pacific 28.59%
Europe 17.70%
Other Countries 1.41%
Cash & Equivalents 10.55%
100.00%
Largest Individual Equity Securities
ASM Pacific Technology 1.71%
Arthur J. Gallagher 1.69
School Specialty 1.50
SBS Broadcasting 1.30
Aviron 1.28
C Technologies 1.23
Hilb, Rogal and Hamilton 1.22
Mutual Risk Management 1.22
Etron Technology 1.22
Baltimore Technologies 1.18
</TABLE>
<TABLE>
American Variable Insurance Series
Global Small Capitalization Fund
Investment Portfolio, June 30, 2000
<S> <C> <C> <C>
Number of Market Percent
Shares Value of Net
Equity Securities (common and preferred stocks) (000) Assets
BUSINESS SERVICES - 11.58%
C Technologies AB (Sweden)(1) 411,000 5,696
C Technologies AB (1)(3) 32,000 399 1.23
Stericycle, Inc. (USA)(1) 175,000 4,200 .85
Hotel Reservations Network, Inc., Class A (USA)(1) 100,000 2,975 .60
innominate AG (Germany)(1)(2)(3) 594 2,535 .51
GameLoft.com (France)(1) 317,300 2,527 .51
ITE Group PLC (United Kingdom) 2,137,200 2,332 .47
Computer Engineering & Consulting Ltd. (Japan) 140,000 2,307 .47
Melody Interactive Solutions AB, Class A 86,300 2,304 .46
(Sweden)(1)(2)(3)
Source Information Management Co. (USA)(1) 150,000 2,288 .46
Zuken Inc. (Japan) 70,000 2,044 .41
Midas, Inc. (USA) 98,700 1,974 .40
Metron Technology NV (Netherlands)(1) 143,000 1,803 .36
Yuxing InfoTech Holdings Ltd. (Hong Kong)(1) 3,154,000 1,730 .35
Photobition Group PLC (United Kingdom) 360,000 1,593 .32
RADWARE Ltd. (Israel)(1) 60,000 1,590 .32
Black Box Corp. (USA)(1) 20,000 1,583 .32
GFT Technologies AG (Germany)(1) 8,000 1,528 .31
Sportsworld Media Group PLC (United Kingdom)(1) 179,500 1,455 .29
Day Interactive Holding AG (Switzerland)(1) 4,500 1,339 .27
CYBIRD Co., Ltd. (Japan)(1)(2)(3) 65 1,216 .25
Zhejiang Expressway Co. Ltd., Class H 7,000,000 1,194 .24
(People's Republic of China)
Group 4 Falck A/S (formerly Falck A/S) (Denmark) 7,000 1,124 .23
Profit Recovery Group International, Inc. (USA)(1) 60,000 998 .20
DreamArts Corp. (Japan)(1)(2)(3) 100 934 .19
Ituran Group (Israel)(1) 26,500 912 .18
MDC Communications Corp., Class A (Canada)(1) 100,000 905 .18
TTI Team Telecom International Ltd. (Israel)(1) 25,000 900 .18
Corporate Services Group PLC (United Kingdom)(1) 578,750 851 .17
Nippon Kanzai Co., Ltd. (Japan) 44,000 804 .16
Elior (France)(1) 62,000 783 .16
Sapiens International Corp. NV (Israel)(1) 100,000 631 .13
Modalis Research Technologies, Inc. (USA)(1)(2)(3) 322,270 625 .13
International Container Terminal Services, 14,500,000 430 .09
Inc. (Philippines)(1)
Infoteria Inc. (Japan)(1)(2)(3) 8 299 .06
MEDION AG (Germany) 2,800 286 .06
Mogul.com Group AB (formerly Optosof AB) (Sweden)(1) 33,800 192 .04
Seminis, Inc., Class A (USA)(1) 42,000 110 .02
ELECTRONIC COMPONENTS - 10.87%
Etron Technology, Inc. (Taiwan)(1) 1,610,000 6,041 1.22
Yamaichi Electronics Co., Ltd. (Japan) 167,000 5,394 1.09
Exar Corp. (USA)(1) 60,000 5,231 1.05
Omni Industries Ltd. (Singapore) 2,100,000 3,465 .70
CTS Corp. (USA) 75,000 3,375 .68
Procomp Informatics Ltd. (Taiwan)(1) 545,400 2,829 .57
Venture Manufacturing (Singapore) Ltd. (Singapore)(2) 258,000 2,629 .53
Acer Laboratories Inc. (Taiwan)(1) 552,500 2,307 .46
Fujitsu Devices Inc. (Japan) 80,000 2,253 .45
QPL International Holdings Ltd. (Hong Kong 1,500,000 2,155 .43
- Incorporated in Bermuda)(1)
Universal Scientific Industrial Co., Ltd. (Taiwan)(1) 850,000 2,080 .42
Unicap Electronics Industrial Corp. (Taiwan)(1) 1,729,000 2,065 .42
SOITEC SA (France)(1) 8,500 1,989 .40
Power Integrations, Inc. (USA)(1) 80,000 1,885 .38
Cymer, Inc. (USA)(1) 35,000 1,671 .34
Melexis NV (Belgium)(1) 100,000 1,442 .29
JIT Holdings Ltd. (Singapore) 800,000 1,399 .28
Optoma Corp. (formerly CTX Opto-Electronics Corp.) 897,000 1,390 .28
(Taiwan)(1)
Honda Tsushin Kogyo Co., Ltd. (Japan) 22,000 1,026 .21
Paltek Corp. (Japan) 30,000 1,011 .20
PILKOR Electronics Ltd. (South Korea) 140,000 942 .19
NatSteel Electronics Ltd. (Singapore) 175,000 537 .11
Varitronix International Ltd. (Hong Kong 300,000 521 .11
-- Incorporated in Bermuda)
Komatsu Electronic Metals Co., Ltd. (Japan)(1) 25,200 282 .06
MERCHANDISING - 9.20%
School Specialty, Inc. (USA)(1) 400,000 7,425 1.50
Whitehall Jewellers, Inc. (USA)(1) 200,000 3,725 .75
Lands' End, Inc. (USA)(1) 86,500 2,887 .58
American Eagle Outfitters, Inc. (USA)(1) 200,000 2,800 .56
Sundrug Co., Ltd. (Japan) 35,000 2,700 .54
Sharper Image Corp. (USA)(1) 210,000 2,625 .53
Culture Convenience Club Co., Ltd. (Japan)(1) 80,000 2,411 .49
Rent-Way, Inc. (USA)(1) 81,000 2,364 .48
Claire's Stores, Inc. (USA) 100,000 1,925 .39
Tsuruha Co., Ltd. (Japan) 40,000 1,763 .35
Senshukai Co., Ltd. (Japan) 140,000 1,450 .29
Homac Corp. (Japan) 55,600 1,430 .29
Michaels Stores, Inc. (USA)(1) 30,000 1,374 .28
Jean Coutu Group (PJC) Inc., Class A (Canada) 57,400 1,342 .27
DFS Furniture Co. PLC (United Kingdom) 250,000 1,334 .27
Sixt AG, nonvoting (Germany) 100,000 1,299 .26
Giordano International Ltd. (Hong Kong) 800,000 1,216 .24
KOMERI Co., Ltd. (Japan) 40,000 1,205 .24
Migros Turk TAS (Turkey) 5,850,000 1,085 .22
Too, Inc. (USA)(1) 35,000 890 .18
JJB Sports PLC (United Kingdom) 100,000 868 .18
Alloy Online, Inc. (USA)(1) 65,000 731 .15
EUROBIKE AG (Germany) 40,000 472 .10
Dickson Concepts (International) Ltd. 310,000 282 .06
(Hong Kong --- Incorporated in Bermuda)(1)
INSURANCE - 5.50%
Arthur J. Gallagher & Co. (USA) 200,000 8,400 1.69
Hilb, Rogal and Hamilton Co. (USA) 175,000 6,070 1.22
Mutual Risk Management Ltd. (USA - 350,000 6,059 1.22
Incorporated in Bermuda)
Reinsurance Group of America, Inc. (USA) 90,000 2,711 .55
Ohio Casualty Corp. (USA) 150,000 1,594 .32
Independent Insurance Group PLC (United Kingdom) 340,000 1,427 .29
E.W. Blanch Holdings, Inc. (USA) 50,000 1,016 .21
HEALTH & PERSONAL CARE - 5.00%
Aviron (USA)(1) 205,200 6,336 1.28
IDEXX Laboratories, Inc. (USA)(1) 183,700 4,202 .85
ILEX Oncology, Inc. (USA)(1) 101,000 3,560 .72
InSite Vision Inc. (USA)(1)(2)(3) 915,000 3,208
InSite Vision Inc., warrants, expire 2004 (1)(2)(3) 9,150 2 .65
Vical Inc. (USA)(1) 80,000 1,540 .31
Pharmacyclics, Inc. (USA)(1) 20,000 1,220 .25
XOMA Ltd. (USA --- Incorporated in Bermuda)(1) 220,000 942 .19
Genetronics Biomedical Ltd., warrants (Canada)(1) 250,000 794 .16
ViroPharma Inc. (USA)(1) 50,000 781 .16
Women First HealthCare, Inc. (USA)(1) 525,500 657 .13
TriPath Imaging, Inc. (USA)(1) 94,836 584 .12
Groupo Casa Saba, SA de CV (formerly 44,900 410 .08
Grupo Casa Autrey, SA de CV) (ADR) (Mexico)(1)
OSI Pharmaceuticals, Inc. (USA)(1)(2) 14,000 403 .08
HemaSure Inc. (USA)(1)(2) 18,000 90 .02
DATA PROCESSING & REPRODUCTION - 4.74%
National Computer Systems, Inc. (USA) 100,000 4,925 .99
Apex Inc. (USA)(1) 110,000 4,813 .97
HNC Software Inc. (USA)(1) 60,000 3,705 .75
Epicentric, Inc., convertible preferred, 340,136 2,500 .50
Series C (USA)(1)(2)(3)
Radiant Systems, Inc. (USA)(1) 100,000 2,400 .48
MICROS Systems, Inc. (USA)(1) 111,000 2,061 .42
SOTEC Co., Ltd. (Japan)(1)(2)(3) 129 1,446 .29
Exchange Applications, Inc. (USA)(1) 50,000 1,331 .27
Xiox Corp., convertible preferred, Series B (USA)(1)(2) 20,000 346 .07
BROADCASTING & PUBLISHING - 4.74%
SBS Broadcasting SA (Luxembourg)(1) 118,000 6,431 1.30
Fox Kids Europe NV (Netherlands)(1) 288,000 4,538 .91
Groupe AB SA (France)(1) 282,500 3,461 .70
Zenrin Co., Ltd. (Japan) 100,000 2,900 .58
Westwood One, Inc. (USA)(1) 64,200 2,191 .44
Canadian Satellite Communications Inc. (Canada) 70,000 1,111 .22
Crown Media Holdings, Inc., Class A (USA)(1) 70,000 1,072 .22
APN News & Media Ltd. (Australia) 423,355 1,021 .21
United Television, Inc. (USA) 6,000 773 .16
ELECTRONIC INSTRUMENTS - 4.64%
ASM Pacific Technology Ltd. (Hong Kong) 2,270,000 8,503 1.71
Picvue Electronics, Ltd. (Taiwan) 4,000,000 3,941 .79
Ando Electric Co., Ltd. (Japan)(1) 140,000 3,230 .65
Micronic Laser Systems AB (Sweden)(1) 155,000 3,152 .64
Orbotech Ltd. (Israel)(1) 18,000 1,672 .34
Lasertec Corp. (Japan) 55,000 1,321 .27
Microelectronics Technology (Taiwan)(1) 354,000 1,178 .24
IT CONSULTING & SERVICES - 2.64%
Baltimore Technologies PLC (United Kingdom)(1) 773,630 5,862 1.18
Securenet Ltd. (Australia)(1) 645,000 3,552 .72
Aldata Solution Oyj (Finland)(1) 354,000 2,400 .48
Data Communication System Co., Ltd. (Japan) 20,000 1,281 .26
MACHINERY & ENGINEERING - 2.62%
Yushin Precision Equipment Co., Ltd. (Japan) 76,300 5,669 1.14
JOT Automation Group Oyj (Finland) 642,500 4,289 .87
Kyowa Exeo Corp. (Japan) 300,000 3,009 .61
WIRELESS TELECOMMUNICATION SERVICES - 2.49%
Tele Centro Oeste Celular Participacoes SA, 300,000 3,600 .73
preferred nominative (ADR) (Brazil)
Tele Norte Celular Participacoes SA, preferred 56,000 2,842 .57
nominative (ADR) (Brazil)
Tele Celular Sul Participacoes SA, preferred 50,000 2,262 .46
nominative (ADR) (Brazil)
TeraBeam Networks (USA)(1)(2)(3) 133,333 2,000 .40
Rogers Cantel Mobile Communications Inc., Class B, 50,000 1,664 .33
restricted voting (Canada)(1)
LEISURE & TOURISM - 2.44%
Vail Resorts, Inc. (USA)(1) 280,000 4,567 .92
Lions Gate Entertainment Corp., convertible 558 1319
preferred, Class A (Canada)(1)(3)
Lions Gate Entertainment Corp.(1) 300,000 709
Lions Gate Entertainment Corp., warrants, 237,150 295 .47
expire 2004 (1)(3)
Morton's Restaurant Group, Inc. (USA)(1) 100,000 2,150 .43
Four Seasons Hotels Inc. (Canada) 17,000 1,065 .22
Alliance Atlantis Communications Inc., 50,000 650 .13
nonvoting, Class B (Canada)(1)
Kinepolis Group NV (Belgium) 10,550 484 .10
Imax Corp. (Canada)(1) 20,000 455 .09
Corp. Interamericana de Entretenimiento, SA de CV 100,000 396 .08
, Class B (Mexico)(1)
ELECTRICAL & ELECTRONICS - 2.27%
Toyo Communication Equipment Co., Ltd. (Japan) 260,000 3,863 .78
Kokusai Electric Co., Ltd. (Japan) 250,000 3,433 .69
Locus Co., Ltd. (South Korea)(1) 20,273 1,646 .33
Numerical Technologies, Inc. (USA)(1) 26,700 1,298 .26
ITG Group PLC (Ireland)(1) 98,029 1,040 .21
ENERGY SOURCES - 2.00%
Gulf Indonesia Resources Ltd. (Indonesia)(1) 450,000 3,600 .73
Western Gas Resources, Inc. (USA) 100,000 2,100 .42
Western Oil Sands Inc., $5.00 units (Canada)(2)(3) 430,000 1,453
Western Oil Sands Inc., $7.50 units (2)(3) 43,333 220 .33
CGX Energy Inc. (Canada)(1) 1,520,000 1,064
CGX Energy Inc., warrants, expire 2001 (1)(2)(3) 760,000 225 .26
Arcon International Resources PLC (Ireland)(1) 4,000,000 818 .17
Cabre Exploration Ltd. (Canada) 40,000 435 .09
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.87%
Highpoint Telecommunications Inc., convertible 380,000 1,898
preferred (Canada)(1)(2)(3)
Highpoint Telecommunications Inc.(1) 130,000 764 .54
Telscape International, Inc. (USA)(1) 337,554 2,278 .46
FirstCom Corp. (USA)(1) 110,000 1,657 .33
Glocalnet AB (Sweden)(1)(2) 800,000 1,145 .23
Cypress Communications, Inc. (USA)(1) 120,000 870 .17
Global Light Telecommunications Inc. (Canada)(1) 40,000 438 .09
Flashcom, Inc., convertible preferred, 38,052 250
Series B (USA)(1)(2)(3)
BEVERAGES & TOBACCO - 1.55%
Shikoku Coca-Cola Bottling Co., Ltd. (Japan) 175,000 2,044 .41
Hokkaido Coca-Cola Bottling Co., Ltd. (Japan) 150,000 1,685 .34
Montana Group Ltd. (New Zealand) 1,250,000 1,313 .27
Quilmes Industrial SA, nonvoting preferred 90,000 1,001 .20
(ADR) (Argentina - Incorporated in Luxembourg)
BRL Hardy Ltd. (Australia) 152,400 654 .13
Simeon Wines Ltd. (Australia) 356,140 555 .11
Robert Mondavi Corp., Class A (USA)(1) 13,600 418 .09
APPLIANCES & HOUSEHOLD DURABLES - 1.09%
Tohoku Pioneer Corp. (Japan) 52,000 3,379 .68
Fisher & Paykel Industries Ltd. (New Zealand) 650,000 2,042 .41
FINANCIAL SERVICES - 0.95%
MarketWatch.com, Inc. (USA)(1) 110,000 2,069 .42
Nissin Co., Ltd. (Japan) 30,000 1,633 .33
American Capital Strategies, Ltd. (USA) 42,000 1,003 .20
MISCELLANEOUS MATERIALS & COMMODITIES - 0.82%
SPARTECH Corp. (USA) 150,000 4,050 .82
TRANSPORTATION: AIRLINES - 0.75%
SkyWest, Inc. (USA) 100,000 3,706 .75
METALS: STEEL - 0.74%
Tubos de Acero de Mexico, SA (ADR) (Mexico) 265,000 3,677 .74
MULTI-INDUSTRY - 0.67%
Novestra AB (Sweden)(1)(2) 250,000 1,988 .40
African Lakes PLC (United Kingdom)(1) 2,100,000 1,352 .27
RECREATION OTHER CONSUMER PRODUCTS - 0.60%
Communication Network Interface, Inc. (South Korea) 180,000 993 .20
VTech Holdings Ltd. (Hong Kong) 225,000 851 .17
AVEX Inc. (Japan) 5,000 518 .10
GTR Group Inc. (Canada)(1) 379,700 434 .09
Metromedia International Group, Inc. (USA)(1) 40,000 190 .04
FOOD & HOUSEHOLD PRODUCTS - 0.56%
PT Indofood Sukses Makmur Tbk (Indonesia)(1) 2,300,000 1,256 .25
Santa Isabel SA (ADR) (Chile)(1) 155,000 1,192 .24
Geest PLC (United Kingdom) 45,000 337 .07
HEALTH CARE PROVIDERS & SERVICES - 0.54%
Medicis Pharmaceutical Corp., Class A (USA)(1) 25,000 1,425 .29
Rhon-Klinikum AG, nonvoting preferred (Germany) 21,000 933 .19
ICON PLC (ADR) (Ireland)(1) 20,000 332 .06
INDUSTRIAL COMPONENTS - 0.50%
Asahi Diamond Industrial Co., Ltd. (Japan) 175,000 1,234 .25
Toyoda Machine Works, Ltd. (Japan) 101,000 1,046 .21
THK Co., Ltd. (Japan) 4,000 202 .04
REAL ESTATE - 0.49%
Muse Prime Software, Inc., preferred, 246,129 2,442 .49
Series B (USA)(1)(2)(3)
METALS: NONFERROUS - 0.44%
Minmet PLC (Ireland)(1)(2) 5,470,638 2,197 .44
BANKING - 0.37%
KorAm Bank (South Korea) 140,000 848 .17
Laurentian Bank of Canada (Canada) 33,000 503 .10
Industrial Finance Corp. of Thailand (Thailand)(1) 2,215,800 464 .10
CHEMICALS - 0.32%
Cambrex Corp. (USA) 15,000 675 .14
OM Group, Inc. (USA) 12,000 528 .11
Ionics, Inc. (USA)(1) 11,900 364 .07
UTILITIES: ELECTRIC & GAS - 0.31%
International Energy Group Ltd. (United Kingdom) 460,000 1,534 .31
WHOLESALE & INTERNATIONAL TRADE - 0.30%
Li & Fung Ltd. (Hong Kong -- Incorporated in Bermuda) 300,000 1,501 .30
BUILDING MATERIALS & COMPONENTS - 0.24%
Elcor Corp. (USA) 50,000 1,150 .23
Futuris Corp. Ltd. (Australia) 29,203 32 .01
GOLD MINES - 0.23%
Gabriel Resources Ltd. (Canada)(1) 600,000 1,135 .23
TEXTILES & APPAREL - 0.21%
Esprit Holdings Ltd. (Hong Kong -- 1,009,049 1,048 .21
Incorporated in Bermuda)
EQUITY COMMON TRUSTS - 0.11%
Atle AB, Class A (Sweden) 36,800 562 .11
AUTOMOBILES - 0.06%
Mahindra & Mahindra Ltd. (GDR) (India) 70,000 324 .06
MISCELLANEOUS - 5.00%
Other equity securities in initial period of acquisition 24,779 5.00
Total Equity Securities (cost: $425,908,000) 443,559 89.45
Pricipal
Amount
(000)
Short Term Securities
CORPORATE SHORT-TERM NOTES - 9.05%
Asset Securitization Corp. 6.53%-6.54% 10,800 10,750 2.17
due 7/21-7/27/2000 (2)
BMW US Capital Corp. 6.53%-6.55% due 7/19-8/16/2000 9,700 9,651 1.95
Toyota Motor Credit Corp. 6.51% due 7/10/2000 6,400 6,388 1.29
Coca-Cola Co. 6.52% due 7/10/2000 5,800 5,789 1.17
Den Danske Bank AS 6.51% due 7/10/2000 4,600 4,592 .93
Bayer Corp. 6.57% due 7/18/2000 (2) 3,300 3,289 .66
Associates First Capital Corp. 6.85% due 7/3/2000 3,260 3,258 .66
Dresdner U.S. Finance Inc. 6.56% due 7/25/2000 1,100 1,095 .22
FEDERAL AGENCY DISCOUNT NOTES - 1.44%
Freddie Mac 6.43% due 7/18/2000 5,800 5,781 1.16
Fannie Mae 6.45% due 8/17/2000 1,400 1,388 .28
NON U.S. GOVERNMENT OBLIGATIONS - 0.96%
Canadian Wheat Board 6.51% due 7/19/2000 4,800 4,784 .96
NON U.S.CURRENCY - 0.04%
New Taiwanese Dollar NT$5,600 183 .04
TOTAL SHORT-TERM SECURITIES (cost: $56,947,000) 56,948 11.49
TOTAL INVESTMENT SECURITIES (cost:$482,855,000) 500,507 100.94
Excess of payables over cash and receivables 4,646 .94
NET ASSETS $495,861 100.00
(1) Non-income-producing security.
(2) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
(3) Valued under procedures established by
the Board of Trustees.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See notes to Financial Statements
</TABLE>
Amerian Variable Insurance Series - Global Small Capitalization Fund
June 30, 2000
@Comm
African Lakes
Aldata Solution
American Capital Strategies
American Eagle Outfitters
Ando Electric
Arcon International Resources
Arthur J. Gallagher
Asahi Diamond Industrial
C Technologies
Canadian Satellite Communications
CGX Energy
Claire's Stores
Communication Network Interface
Crown Media Holdings
CTS
Culture Convenience Club
CYBIRD
Cypress Communications
Day Interactive Holding
DreamArts
E.W. Blanch Holdings
Elcor
Elior
Epicentric
Etron Technology
Exar
Exchange Applications
FirstCom
Flashcom
Gabriel Resources
GameLoft.com
GFT Technologies
Glocalnet
Groupe AB
Gulf Indonesia Resources
HemaSure
Hilb, Rogal and Hamilton
Honda Tsushin Kogyo
Hotel Reservations Network
IDEXX Laboratories
ILEX Oncology
Infoteria
innominate
InSite Vision
JIT Holdings
JJB Sports
KorAm Bank
Kyowa Exeo
Locus
MarketWatch.com
Melexis
Melody Interactive Solutions
Microelectronics Technology
Micronic Laser Systems
MICROS Systems
Modalis Research Technologies
Muse Prime Software
Mutual Risk Management
Novestra
Numerical Technologies
Ohio Casualty
OSI Pharmaceuticals
PILKOR Electronics
Procomp Informatics
Profit Recovery Group International
QPL International Holdings
Radiant Systems
RADWARE
Reinsurance Group of America
Santa Isabel
Securenet
Sixt
SOTEC
Sportsworld Media Group
Stericycle
Tele Norte Celular Participacoes
Telscape International
TeraBeam Networks
Tohoku Pioneer
Toyo Communication Equipment
Toyoda Machine Works
TTI Team Telecom International
Tubos de Acero de Mexico
Unicap Electronics Industrial
Universal Scientific Industrial
Vical
VTech Holdings
Western Gas Resources
Whitehall Jewellers
XOMA
Yamaichi Electronics
Yuxing InfoTech Holdings
Zenrin
Eliminated
Applied Micro Circuits
BERU
Bombay Co.
Brunel International
Chapters Online
CinemaxX
Dallas Semiconductor
Densei Lambda
Dialer & Business Electronics
Disco
Documentum
DuPont Photomasks
Etec Systems
eXchange Holdings
Finisar
Flextronics International
Formula Systems (1985)
Great Plains Software
Great Wall Technology
hi/fn
HISAKA WORKS
Inet Technologies
InfoCure
Infowave Software
KCI Konecranes International
Kiekert
Kroll-O'Gara
Lason
Launch Media
London Bridge Software Holdings
Maker Communications
Mandamus Fastigheter
MegaChips
Micrel
Mitchell Energy & Development
MMC Networks
Momentum Business Applications
Movado Group
NDS Group
Nice Systems
Nobel Biocare
Northrock Resources
OpenTV
Premier Oil
Radica Games
Radio Unica Communications
RadiSys
Sanmina
SciQuest.com
Station Casinos
Tower Semiconductor
TranSwitch
Veeco Instruments
Western Telecom
Wiggins Group
Wolford Group
<TABLE>
American Funds Insurance Series Growth Fund
Investment Portfolio June 30, 2000 (Unaudited)
<S> <C>
Equity Securities 92.85%
CASH &
EQUIVALENTS 7.15%
Percent
Of Net
Largest Individual Equity Securities Assets
Viacom 6.20
Texas Instruments 3.37
Time Warner 3.31
Corning 3.31
Pfizer 3.27
3Com 1.93
Microchip Technology 1.89
News Corp. 1.80
Cardinal Health 1.80
Micron Technology 1.74
Market Percent
Number of Value of Net
Equity Securities (common and preferred stocks) Shares (000) Assets
ELECTRONIC COMPONENTS - 21.01%
Texas Instruments Inc. 5,352,000 367,616 3.37
Corning Inc. 1,337,300 360,904 3.31
Microchip Technology Inc. (1) 3,547,500 206,697 1.89
Micron Technology, Inc. (1) 2,157,600 190,004 1.74
Solectron Corp. (1) 4,384,000 183,580 1.68
Analog Devices, Inc. (1) 2,233,332 169,733 1.56
LSI Logic Corp. (1) 2,050,000 110,956 1.02
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) (1) 22,041,600 104,994 .96
Linear Technology Corp. 1,461,000 93,413 .86
PMC-Sierra, Inc. (1) 520,000 92,398 .85
SCI Systems, Inc. (1) 2,068,052 81,042 .74
Intel Corp. 450,000 60,159 .55
Adaptec, Inc. (1) 2,286,000 52,006 .48
Applied Micro Circuits Corp. (1) 400,000 39,500 .36
Redback Networks Inc. (1) 217,500 38,715 .35
Quantum Corp. - DLT & Storage Systems (1) 2,000,000 19,375
Quantum Corp. - Hard Disk Drive (1) 1,000,000 11,063 .28
Motorola, Inc. (formerly General Instrument Corp.) 1,035,000 30,080 .28
Altera Corp. (1) 250,000 25,484 .23
Maxim Integrated Products, Inc. (1) 288,000 19,566 .18
Seagate Technology (1) 200,000 11,000 .10
Cypress Semiconductor Corp. (1) 125,000 5,281 .05
Vitesse Semiconductor Corp. (1) 62,000 4,561 .04
JDS Uniphase Corp. (1) 35,000 4,196 .04
Micrel, Inc. (1) 82,000 3,562 .03
Jabil Circuit, Inc. (1) 70,000 3,474 .03
Sanmina Corp. (1) 35,000 2,992 .03
BROADCASTING & PUBLISHING - 16.78%
Viacom Inc., Class B (1) 9,038,629 616,322
Viacom Inc., Class A (1) 878,400 60,061 6.20
Time Warner Inc. 4,755,150 361,391 3.31
News Corp. Ltd., preferred (ADR) (Australia) 2,695,700 128,046
News Corp. Ltd. (ADR) 1,270,000 69,215 1.80
UnitedGlobalCom, Inc., Class A (1) 2,830,500 132,326 1.21
USA Networks, Inc. (1) 5,940,000 128,452 1.18
Fox Entertainment Group, Inc., Class A (1) 3,450,000 104,794 .97
AT&T Corp. Liberty Media Group, Class A (1) 2,350,000 56,987 .52
Clear Channel Communications, Inc. (1) 699,000 52,425 .48
BHC Communications, Inc., Class A (1) 286,189 43,501 .40
PRIMEDIA Inc. (1) 1,022,900 23,271 .21
Comcast Corp., Class A, special stock (1) 550,000 22,275 .21
Infinity Broadcasting Corp., Class A (1) 521,000 18,984 .17
AMFM Inc.(1) 185,700 12,813 .12
HEALTH & PERSONAL CARE - 13.36%
Pfizer Inc 7,426,500 356,472 3.27
Cardinal Health, Inc. 2,650,000 196,100 1.80
American Home Products Corp. 2,838,000 166,732 1.53
Pharmacia Corp. (merger of Pharmacia 3,119,244 161,226 1.48
& Upjohn, Inc. and Monsanto Co.)
AstraZeneca PLC (United Kingdom) 2,250,000 105,100 96
Sepracor Inc. (1) 604,800 72,954 .67
Millennium Pharmaceuticals, Inc. (1) 600,000 67,125 .61
Gillette Co. 1,600,000 55,900 .51
MedImmune, Inc. (1) 645,000 47,730 .44
Novoste Corp. (1) 700,000 42,700 .39
Bristol-Myers Squibb Co. 680,000 39,610 .36
Celera Genomics Group (1) 363,900 34,025 .31
Forest Laboratories, Inc. (1) 300,000 30,300 .28
Guidant Corp. (1) 536,000 26,532 .24
Inhale Therapeutics Systems, Inc. (1) (2) 200,000 20,294 .19
Genentech, Inc. (1) 73,400 12,625 .12
Omnicare, Inc. 1,250,900 11,336 .10
Medarex, Inc. (1) 41,000 3,464 .03
Guilford Pharmaceuticals, Inc. (1) 200,000 3,013 .03
Immunex Corp. (1) 46,000 2,274 .02
ImClone Systems Inc. (1) 25,000 1,911 .02
DATA PROCESSING & REPRODUCTION - 7.55%
3Com Corp. (1) 3,655,000 210,619 1.93
PeopleSoft, Inc. (1) 6,900,828 115,589 1.06
Oracle Corp. (1) 950,000 79,859 .73
Cadence Design Systems, Inc. (1) 3,500,000 71,312 .65
Computer Associates International, Inc. 1,300,000 66,544 .61
Fujitsu Ltd. (Japan) 1,500,000 51,841 .48
Microsoft Corp. (1) 550,000 44,000 .40
Lexmark International Group, Inc., Class A (1) 610,000 41,023 .38
Autodesk, Inc. 920,000 31,912 .29
Gateway, Inc. (1) 324,400 18,410 .17
Storage Technology Corp. (1) 1,462,000 15,991 .15
Mentor Graphics Corp. (1) 800,000 15,900 .15
Dell Computer Corp. (1) 321,800 15,869 .15
Asera, Inc., preferred, Series C (1) (2) (3) 511,776 10,000 .09
Vignette Corp. (1) 186,000 9,675 .09
Compaq Computer Corp. 300,000 7,669 .07
TIBCO Software Inc. (1) 44,000 4,718 .04
Micromuse Inc. (1) 22,000 3,641 .03
VERITAS Software Corp. (1) 30,000 3,390 .03
Portal Software, Inc. (1) 45,000 2,874 .03
i2 Technologies, Inc. (1) 26,000 2,711 .02
ELECTRICAL & ELECTRONICS - 4.81%
Juniper Networks, Inc. (1) 896,200 130,453 1.20
Nortel Networks Corp. (Canada) 1,592,000 108,654 1.00
Telefonaktiebolaget LM Ericsson, Class B (ADR) (Sweden) 5,099,000 101,980 .93
NEC Corp. (Japan) 2,845,000 89,216 .82
Nokia Corp., Class A (ADR) (Finland) 1,408,000 70,312 .64
Alcatel (formerly Newbridge Networks Corp.) (ADR) (France) 243,000 16,160 .15
Sycamore Networks, Inc. (1) 44,000 4,856 .04
Cisco Systems, Inc. (1) 54,000 3,432 .03
INSURANCE - 4.09%
American International Group, Inc. 1,500,000 176,250 1.62
Marsh & McLennan Companies, Inc. 819,000 85,534 .78
Berkshire Hathaway Inc., Class A (1) 1,500 80,700 .74
Progressive Corp. 700,000 51,800 .48
XL Capital Ltd., Class A (Bermuda - 710,000 38,429 .35
Incorporated in the Cayman Islands)
MGIC Investment Corp. 250,000 11,375 .10
Aon Corp. 62,000 1,926 .02
ELECTRONIC INSTRUMENTS - 4.02%
KLA-Tencor Corp. (1) 2,724,000 159,524 1.46
Applied Materials, Inc. (1) 1,644,000 148,988 1.36
PE Corp. - PE Biosystems Group 1,411,600 92,989 .85
Teradyne, Inc. (1) 325,000 23,888 .22
SDL, Inc. (1) 26,000 7,415 .07
ANTEC Corp. (1) 150,000 6,234 .06
BUSINESS SERVICES - 3.37%
Cendant Corp. (1) 8,564,800 119,907 1.10
Federal Express Corp. (1) 1,400,000 53,200 .49
Allied Waste Industries, Inc. (1) 2,950,000 29,500 .27
Robert Half International Inc. (1) 800,000 22,800 .21
Waste Management, Inc. 1,200,000 22,800 .21
Sabre Holdings Corp., Class A (1) 794,917 22,655 .21
Avery Dennison Corp. 200,000 13,425 .12
iXL Enterprises, Inc. (1) 800,000 11,600 .11
United Parcel Service, Inc., Class B 186,200 10,986 .10
Extreme Networks, Inc. (1) 86,500 9,126 .08
Digex, Inc., Class A (1) 94,000 6,386 .06
VeriSign, Inc. (1) 36,013 6,356 .06
Ariba, Inc. (1) 58,000 5,687 .05
Internet Capital Group, Inc. (1) 150,000 5,552 .05
X.com Corp., convertible preferred, Series C (1) (2) (3) 1,872,727 5,150 .05
BEA Systems, Inc. (1) 100,000 4,944 .04
Flextronics International Ltd. (USA 63,000 4,327 .04
-- Incorporated in Singapore) (1)
Exodus Communications, Inc. (1) 80,000 3,685 .03
Concord EFS, Inc. (1) 110,000 2,860 .03
InterNAP Network Services Corp. (1) 65,000 2,699 .02
Paychex, Inc. 60,000 2,520 .02
SAVVIS Communications Corp. (1) 131,500 1,718 .02
LEISURE & TOURISM - 2.95%
Walt Disney Co. 3,875,000 150,398
Go.com (1) 341,205 4,073 1.42
Starbucks Corp. (1) 2,750,000 105,016 .96
Carnival Corp. 3,208,000 62,556 .57
HEALTH CARE PROVIDERS & SERVICES - 2.27%
HCA - Healthcare Co. (formerly Comlumbia/ 4,990,300 151,580 1.39
HCA Healthcare Corp.)
WellPoint Health Networks Inc. (1) 750,000 54,328 .50
Universal Health Services, Inc., Class B (1) 500,000 32,750 .30
Quintiles Transnational Corp. (1) 650,000 9,181 .08
FINANCIAL SERVICES - 1.87%
Fannie Mae 2,063,000 107,663 .99
Capital One Financial Corp. 950,600 42,421 .39
Household International, Inc. 748,000 31,089 .28
Providian Financial Corp. 232,000 20,880 .19
Freddie Mac 49,000 1,984 .02
WIRELESS TELECOMMUNICATION SERVICES - 1.58%
NTT DoCoMo, Inc.
!(formerly NTT Mobile Communications Network, Inc.) (Japan) 3,118 84,270 .77
Crown Castle International Corp. (1) 1,988,400 72,577 .67
Nextel Communications, Inc., Class A (1) 200,000 12,238 .11
Sprint PCS Group (1) 39,000 2,320 .02
Paging Network, Inc. (1) 1,500,000 1,078 .01
BANKING - 1.46%
Sakura Bank, Ltd. (Japan) 8,000,000 55,222 .51
Charter One Financial, Inc. 1,100,000 25,300 .23
Washington Mutual, Inc. 850,000 24,544 .23
FleetBoston Financial Corp. 688,941 23,424 .21
Wells Fargo & Co. 500,000 19,375 .18
M&T Bank Corp. 25,000 11,250 .10
ENERGY SOURCES - 1.38%
EOG Resources, Inc. 1,200,000 40,200 .37
Murphy Oil Corp. 609,700 36,239 .33
Pogo Producing Co. 1,599,300 35,384 .32
Enterprise Oil PLC (United Kingdom) 1,700,000 14,195 .13
Talisman Energy Inc. (Canada) (1) 400,000 13,254 .12
TOTAL FINA SA, Class B (ADR) (France) 150,000 11,522 .11
BEVERAGES & TOBACCO - 1.13%
Coca-Cola Co. 912,000 52,383 .48
Philip Morris Companies Inc. 1,030,000 27,359 .25
Coca-Cola West Japan Co. Ltd. (Japan) 800,000 25,238 .23
PepsiCo, Inc. 400,000 17,775 .17
TRANSPORTATION: AIRLINES - 1.09%
Southwest Airlines Co. 4,344,762 82,279 .75
AMR Corp. (1) 1,100,000 29,081 .27
Delta Air Lines, Inc. 150,000 7,585 .07
MERCHANDISING - 0.80%
Consolidated Stores Corp. (1) 2,152,425 25,829 .23
Limited Inc. 1,100,000 23,788 .22
Lowe's Companies, Inc. 484,000 19,874 .18
Sunglass Hut International, Inc. (1) (4) 2,203,000 18,106 .17
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.59%
CoreExpress, Inc., convertible preferred, 1,861,446 23,000 .21
Series C (1) (2) (3)
Equinix, Inc., convertible preferred, 1,315,649 19,840 .18
Series C (1) (2) (3)
MCI WorldCom, Inc. (1) 300,000 13,762 .13
Rhythms NetConnections Inc. (1) 588,000 7,387 .07
MISCELLANEOUS MATERIALS & COMMODITIES - 0.41%
Sealed Air Corp. (1) 850,000 44,519 .41
FOOD & HOUSEHOLD PRODUCTS - 0.30%
Keebler Foods Co. 600,000 22,275 .20
Dole Food Co., Inc. 750,000 10,500 .10
CHEMICALS - 0.29%
Valspar Corp. 721,300 24,344 .22
Air Products and Chemicals, Inc. 250,000 7,703 .07
RECREATION OTHER CONSUMER PRODUCTS - 0.24%
Hasbro, Inc. 1,725,000 25,983 .24
UTILITIES: ELECTRIC & GAS - 0.17%
Questar Corp. 950,000 18,406 .17
ENERGY EQUIPMENT - 0.14%
Schlumberger Ltd. (Netherlands Antilles) 150,000 11,194 .10
Baker Hughes Inc. 113,000 3,616 .04
TRANSPORTATION: RAIL & ROAD - 0.02%
Wisconsin Central Transportation Corp. (1) 200,000 2,600 .02
MISCELLANEOUS - 1.17%
Other equity securities in initial period of acquisition 128,197 1.17
Total Equity Securities (cost: $5,582,596,000) 10,131,116 92.85
Principal Market Percent
Amount Value of Net
Short Term Securities (000) (000) Assets
CORPORATE SHORT-TERM NOTES - 6.79%
Park Avenue Receivables Corp. 6.55%-6.58% 62,220 62,034 .57
due 7/13-7/20/2000
SBC Communications Inc. 6.14%-6.55% due 7/13-8/23/2000 43,600 43,311 .40
Duke Energy Corp. 6.52%-6.53% due 7/14-8/2/2000 43,500 43,303 .40
Ciesco LP 6.52% due 7/7/2000 40,000 39,949 .37
American Express Credit Corp. 6.56% due 7/24/2000 40,000 39,825 .36
Bell Atlantic Network Funding Corp. 6.53%-6.54% due
!7/17-7/25/2000 38,800 38,660 .35
Wal-Mart Stores, Inc. 6.53% due 8/8/2000 36,200 35,943 .33
General Motors Acceptance Corp. 6.56% due 7/14/2000 30,600 30,522 .28
Corporate Asset Funding Co. Inc. 6.53% due 7/11/2000 30,000 29,940 .27
Motiva Enterprises LLC 6.47%-6.54% due 7/6-7/28/2000 30,000 29,887 .27
H.J. Heinz Co. 6.51%-6.53% due 7/5-8/16/2000 30,000 29,858 .27
Pharmacia Corp. 6.55% due 8/4/2000 29,600 29,412 .27
International Lease Finance Corp. 6.52%-6.58%
!due 7/19-9/15/2000 25,980 25,802 .24
Emerson Electric Co. 6.55% due 7/6/2000 25,000 24,973 .23
Procter & Gamble Co. 6.55% due 7/12/2000 25,000 24,945 .23
Preferred Receivables Funding Corp. 6.55% due 7/27/2000 25,000 24,877 .23
CIT Group, Inc. 6.54% due 8/1/2000 23,000 22,866 .21
Ford Motor Credit Co. 6.53%-6.56% due 7/19-7/26/2000 19,970 19,883 .18
Campbell Soup Co. 6.53% due 7/26/2000 19,700 19,607 .18
BellSouth Capital Funding Corp. 6.51%-6.53%
!due 7/21-8/21/2000 19,100 18,982 .17
Bell Atlantic Financial Services, Inc.
!6.55%-6.63% due 7/31-8/14/2000 18,375 18,234 .17
Gannett Co., Inc. 6.50% due 7/19/2000 18,000 17,938 .16
BellSouth Telecommunications, Inc.
!6.50%-6.54% due 7/18-8/14/2000 17,400 17,317 .16
AT&T Corp. 6.52%-6.70% due 7/10-7/24/2000 15,700 15,659 .14
Eastman Kodak Co. 6.62% due 8/21/2000 15,000 14,858 .14
General Electric Capital Corp. 6.95% due 7/3/2000 11,700 11,693 .11
Coca-Cola Co. 6.32%-6.44% due 7/7-7/11/2000 10,910 10,891 .10
FEDERAL AGENCY DISCOUNT NOTES - 0.36%
Freddie Mac 6.385%-6.46% due 7/5-9/14/2000 30,000 29,845 .27
Fannie Mae 6.50% due 9/21/2000 10,000 9,851 .09
NON-U.S. CURRENCY - 0.04%
New Taiwanese Dollar NT$118558 3,868 .04
Total Short Term Securities (cost: $784,449,000) 784,733 7.19
Total Investment Securities (cost:$6,367,045,000) 10,915,849 100.04
Excess of payables over cash and receivables 4,929 .04
NET ASSETS $10,910,920 100.00
(1) Non-income-producing security.
(2) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
(3) Valued under procedures established by
the Board of Trustees.
(4) The fund owns 5.38% of the outstanding
voting securities of Sunglass Hut International,
Inc. and thus is considered an affiliate as defined
under the Investment Company Act of 1940.
ADR = American Depositary Receipts
See Notes to Financial Statements
</TABLE>
GROWTH FUND
Equity securities appearing in the portfolio since December 31, 1999
American Home Products
American international Group
Aon
Ariba
Asera
Baker Hughes
BEA Systems
Berkshire Hathaway
Bristol-Myers Squibb
Cisco Systems
Coca-Cola
CoreExpress
Dell Computer
Digex
Equinix
Exodus Communications
Extreme Networks
Freddie Mac
Gillett
i2 Technologies
ImClone Systems
Immunex
Infinity Broadcasting
InterNAP Network Services
Internet Capital Group
iXL Enterprises
JDS Uniphase
Marsh & McLennan
Medarex
Micrel
Micromuse
Portal Software
PRIMEDIA
Progressive
Redback Network
sRhythms NetConnections
SAVVIS Communications
SDL
Sprint PCS Group
Sycamore Networks
TIBCO Software
VeriSign
VERITAS Software
Vignette
Walt Disney
WellPoint Health Networks
X.com
Equity securities eliminated from the portfolio since December 31, 1999
Amgen
Biogen
Cablevision Systems
Gilead Sciences
Lucent Technologies
NIKE
Snyder Communications
Teleglobe
Thermo Electron
<TABLE>
American Funds Insurance Series International Fund
Investment Portfolio, June 30, 2000 (Unaudited)
<S> <C> <C> <C>
Where the Fund's Assets Are Invested
Percent of
Net Assets
--------
Europe 45.58%
Asia/Pacific Rim 35.58%
The Americas 8.31%
Other Countries 3.18%
Cash & Equivalents 7.35%
Largest Individual Equity Securities
Vodafone AirTouch 3.04%
Nokia 3.01
Telefonos de Mexico 2.65
Check Point Software Technologies 2.38
Ericsson 2.31
Taiwan Semiconductor Manufacturing 2.18
Mediaset 2.04
Telefonica 2.03
Rohm 1.86
AstraZeneca 1.76
Number of Market Percent
Shares Value of Net
Stocks (common and preferred) (000) Assets
BROADCASTING & PUBLISHING - 18.61%
Mediaset SpA (Italy) 5,967,000 $91,170 2.04%
CANAL+ (France) 447,672 75,245 1.69
Metropole Television (France) 890,000 54,057 1.21
United Pan-Europe Communications NV (Netherlands) (1) 1,950,000 51,007 1.15
Seat Pagine Gialle SpA (Italy) 20,000,000 48,017 1.08
Television Francaise 1 SA (France) 650,000 45,315 1.02
British Sky Broadcasting Group PLC (United Kingdom) (1) 2,200,000 43,074 .97
Fuji Television Network Inc. (Japan) 2,611 40,816 .92
News Corp. Ltd. (ADR) (Australia) 362,000 19,729
News Corp. Ltd., preferred (ADR) 181,000 8,597
News Corp. Ltd., preferred 201,888 2,431 .69
TeleWest Communications PLC (formerly 8,505,000 29,386 .66
Flextech PLC) (United Kingdom) (1)
Television Broadcasts Ltd. (Hong Kong) 4,330,000 28,884 .65
ProSieben Media AG (Germany) 230,400 28,824 .65
KirchMedia GmbH & Co. KGaA (Germany) (1) (2) (3) 675,511 28,284 .63
Austar United Communications Ltd. (Australia) (1) 8,208,200 27,671 .62
Nippon Television Network Corp. (Japan) (1) (4) 21,000 13,685
Nippon Television Network Corp. 21,000 13,645 .61
Tokyo Broadcasting System, Inc. (Japan) (1) 600,000 25,878 .58
Grupo Televisa, SA (ADR) (Mexico) (1) 360,000 24,817 .56
Sogecable, SA (Spain) (1) 660,100 23,463 .54
Modern Times Group MTG AB, Class B (ADR) (Sweden) (1) 61,000 15,067
Modern Times Group MTG AB, Class A (1) 101,600 4,617 .44
Publishing & Broadcasting Ltd. (Australia) 2,350,000 18,037 .40
MIH Ltd., Class A (South Africa) (1) 600,000 18,019 .40
Promotora de Informaciones, SA (Spain) (1) 676,500 15,699 .35
Fox Kids Europe NV (Netherlands) (1) 820,000 12,921 .29
Axel Springer Verlag AG (Germany) 10,000 11,460 .26
SBS Broadcasting SA (Luxembourg) (1) 158,800 8,655 .19
Primedia Ltd., units (South Africa) 391,631 318
Primedia Ltd., units, Class N 179,635 134 .01
DIVERSIFIED TELECOMMUNICATION SERVICES - 9.75%
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 2,064,000 117,906 2.65
Telefonica, SA (Spain) (1) 3,121,200 67,067
Telefonica, SA (ADR) (1) 362,931 23,250 2.03
Telecom Italia SpA, nonconvertible savings (Italy) 7,884,165 52,201
Telecom Italia SpA 345,000 4,723 1.28
Deutsche Telekom AG (Germany) 865,100 49,240 1.10
Nippon Telegraph and Telephone Corp. (Japan) 2,200 29,212 .66
Korea Telecom Corp. (ADR) (South Korea) 467,900 22,634 .51
Telefonica de Argentina SA, Class B (ADR) (Argentina) 400,000 12,700 .28
Videsh Sanchar Nigam Ltd. (GDR) (India) 740,550 11,664 .26
Cable & Wireless Optus Ltd. (Australia) (1) 3,700,000 11,006 .25
Koninklijke PTT Nederland NV (Netherlands) 235,366 10,531 .24
Tiscali SpA (Italy) (1) 170,000 7,119 .16
Philippine Long Distance Telephone Co. (Philippines) 205,000 3,682
Philippine Long Distance Telephone Co. (ADR) 154,000 2,734 .14
One.Tel Ltd. (Australia) 7,500,000 4,928 .11
Bayan Telecommunications Holdings Corp., 150,000 3298
convertible preferred (Philippines) (1) (2) (3)
Bayan Telecommunications Holdings Corp., 43,010 50
Class A (1) (2) (3)
Bayan Telecommunications Holdings Corp., 14,199 16 .07
Class B (1) (2) (3)
Cia. de Telecomunicaciones de Chile SA (ADR) (Chile) 26,170 474 .01
ELECTRONIC COMPONENTS - 9.07%
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) (1) 20,343,680 96,906 2.18
Rohm Co., Ltd. (Japan) 284,000 82,908 1.86
Samsung Electro-Mechanics Co., Ltd. (South Korea) (1) 1,097,730 68,824 1.54
Murata Manufacturing Co., Ltd. (Japan) 211,000 30,242 .68
Infineon Technologies AG (Germany) (1) 343,000 27,188 .61
Hon Hai Precision Industry Co. Ltd. (Taiwan) (1) 1,960,000 17,777 .40
Samsung Electronics Co., Ltd. (South Korea) 53,600 17,740 .40
Hirose Electric Co., Ltd. (Japan) 111,000 17,258 .39
Hyundai Electronics Industries Co., Ltd. (South Korea) (1) 800,000 15,786 .35
Hoya Corp. (Japan) 175,000 15,656 .35
STMicroelectronics NV (Netherlands) 220,000 13,867 .31
ELECTRICAL & ELECTRONICS - 9.01%
Nokia Corp. (Finland) 2,628,000 134,146 3.01
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 3,574,800 70,863
Telefonaktiebolaget LM Ericsson, Class B (ADR) 1,600,000 32,000 2.31
Toshiba Corp. (Japan) 4,230,000 47,682 1.07
Nortel Networks Corp. (Canada) 600,000 40,950 .92
NEC Corp. (Japan) 1,280,000 40,139 .90
Hitachi, Ltd. (Japan) 1,970,000 28,384 .64
Premier Farnell PLC (United Kingdom) 1,000,000 7,380 .16
WIRELESS TELECOMMUNICATION SERVICES - 5.70%
Vodafone AirTouch PLC (United Kingdom) 33,516,909 135,613 3.04
China Mobile (Hong Kong) Ltd. (formerly 314,600 55,940 1.26
China Telecom (Hong Kong) Ltd.) (ADR)
(People's Republic of China) (1)
Telecom Italia Mobile SpA (Italy) 2,000,000 20,435
Telecom Italia Mobile SpA, savings 1,312,800 6,635 .61
DDI Corp. (Japan) 2,600 24,974 .56
NTT DoCoMo, Inc. (formerly NTT Mobile 216 5,838 .13
Communications Network, Inc.) (Japan)
TELECEL - Comunicacoes Pessoais, SA (Portugal) 282,000 4,282 .10
HEALTH & PERSONAL CARE - 5.27%
AstraZeneca PLC (United Kingdom) 1,677,054 78,182 1.76
Fujisawa Pharmaceutical Co. Ltd. (Japan) 1,346,000 54,378 1.22
Shionogi & Co., Ltd. (Japan) 2,347,000 44,535 1.00
Elan Corp., PLC (ADR) (Ireland) (1) 682,800 33,073 .74
Aventis SA (France) 210,000 15,332 .34
CSL Ltd. (Australia) 351,800 6,942
CSL Ltd.(1) 118,700 2,342 .21
BUSINESS SERVICES - 4.93%
Adecco SA (Switzerland) 56,000 47,605 1.07
ADVA AG Optical Networking (Germany) (1) 53,400 30,343 .68
Brambles Industries Ltd. (Australia) 925,682 28,384 .64
Intershop Communications AG (Germany) (1) 50,000 22,586 .51
Aegis Group PLC (United Kingdom) 7,350,000 21,663 .49
Rakuten, Inc. (Japan) (1) 303 18,404 .41
Terra Networks, SA (Spain) (1) 278,000 10,752 .24
Sonae.com, SGPS, SA (Portugal) (1) 1,000,000 9,770 .22
China.com Corp., Class A (Hong Kong) (1) 420,000 8,584 .19
Vivendi SA (France) 88,147 7,782 .17
Liberty Surf Group SA (France) (1) 159,222 5,168 .12
United Internet AG (Germany) (1) 30,000 3,682 .08
TNT Post Groep NV (Netherlands) 91,496 2,468 .06
Zhejiang Expressway Co. Ltd., Class H 10,298,000 1,757 .04
( People's Republic of China)
Rentokil Initial PLC (United Kingdom) 284,100 646 .01
AdLINK Internet Media AG (Germany) (1) 10,000 113 .00
Jobs & Adverts AG (Germany) (1) 3,333 56 .00
Metropolis Transactive Holdings Ltd. (South Africa) (1) 58,765 10 .00
BANKING - 4.21%
ABN AMRO Holding NV (Netherlands) 1,937,245 47,473 1.07
Sakura Bank, Ltd. (Japan) 4,850,000 33,478 .75
Bank of Nova Scotia (Canada) 975,000 23,909 .54
DBS Group Holdings Ltd. (Singapore) 1,628,200 20,925 .47
Industrial Bank of Japan, Ltd. (Japan) 1,800,000 13,628 .31
Unibanco-Uniao de Bancos Brasileiros SA, 360,000 10,350 .23
units (GDR) (Brazil)
Lloyds TSB Group PLC (United Kingdom) 1,000,000 9,456 .21
Fuji Bank, Ltd. (Japan) 970,000 7,362 .16
Bank of Scotland (United Kingdom) 711,635 6,778 .15
Dai-Ichi Kangyo Bank, Ltd. (Japan) 600,000 4,548 .10
Bangkok Bank PCL (Thailand) (1) 3,500,000 4,289 .10
Commonwealth Bank of Australia (Australia) 245,000 4,052 .09
Standard Chartered Bank (United Kingdom) 101,630 1,268 .03
MERCHANDISING - 2.55%
Dixons Group PLC (United Kingdom) (1) 11,333,723 46,201 1.04
EM.TV & Merchandising AG (Germany) 564,800 33,280
EM.TV & Merchandising AG (1) 70,200 4,137 .84
Wal-Mart de Mexico, SA de CV (formerly Cifra, 6,000,000 13,809 .31
SA de CV), Class C (Mexico) (1)
Ito-Yokado Co., Ltd. (Japan) 135,000 8,111 .18
Kingfisher PLC (United Kingdom) 557,224 5,079 .11
Loblaw Companies Ltd. (Canada) 108,800 3,116 .07
IT CONSULTING & SERVICES - 2.38%
Check Point Software Technologies Ltd. (Israel) (1) 500,000 105,875 2.38
DATA PROCESSING & REPRODUCTION - 2.03%
Fujitsu Ltd. (Japan) 1,600,000 55,297 1.24
BCE Inc. (Canada) (1) 575,000 35,076 .79
ENERGY SOURCES - 1.99%
Broken Hill Proprietary Co. Ltd. (Australia) 4,911,615 57,941 1.30
TOTAL FINA SA, Class B (France) 48,944 7,506
TOTAL FINA SA, Class B (ADR) 55,000 4,225 .26
Norsk Hydro AS (Norway) 237,700 9,983 .22
Woodside Petroleum Ltd. (Australia) 600,000 4,659 .11
"Shell" Transport and Trading Co., PLC, 90,000 4,494 .10
New York registered (United Kingdom)
APPLIANCES & HOUSEHOLD DURABLES - 1.99%
Sony Corp. (Japan) 590,200 55,024 1.23
Koninklijike Philips Electronics NV (Netherlands) 500,000 23,588 .53
THOMSON multimedia (France) (1) 156,800 10,153 .23
INDUSTRIAL COMPONENTS - 1.72%
Nippon Electric Glass Co., Ltd. (Japan) 3,000,000 69,216 1.56
Bridgestone Corp. (Japan) 175,000 3,700 .08
Valeo (France) 50,000 2,674 .06
Minebea Co., Ltd. (Japan) 60,000 751 .02
RECREATION & OTHER CONSUMER PRODUCTS - 1.69%
Nintendo Co., Ltd. (Japan) 210,000 36,625 .82
Canon, Inc. (Japan) 500,000 24,861 .56
EMI Group PLC (United Kingdom) 1,500,000 13,639 .31
AUTOMOBILES - 1.14%
Suzuki Motor Corp. (Japan) 1,700,000 21,900 .49
Honda Motor Co., Ltd. (Japan) 561,000 19,072 .43
Volvo AB, Class B (Sweden) 450,000 9,789 .22
MULTI-INDUSTRY - 1.11%
Orkla AS, Class A (Norway) 2,097,942 39,893 .90
Lend Lease Corp. Ltd. (Australia) 500,000 6,364 .14
Preussag AG (Germany) 58,429 1,886 .04
Benpres Holdings Corp. (GDR) (Philippines) (1) 771,100 1,388 .03
BUILDING MATERIALS & COMPONENTS - 1.09%
Cemex, SA de CV (ADR) (Mexico) 1,541,212 36,026
Cemex, SA de CV, warrants, expire 2002 (1) 92,038 242 .81
Holderbank Financiere Glaris Ltd. (Switzerland) 10,000 12,267 .28
FOOD & HOUSEHOLD PRODUCTS - 0.99%
Nestle SA (Switzerland) 11,295 22,619 .51
Groupe Danone (France) 100,000 13,275 .30
Reckitt Benckiser PLC (United Kingdom) 737,375 8,269 .18
MACHINERY & ENGINEERING - 0.80%
GKN PLC (United Kingdom) 1,031,993 13,184 .30
Mitsubishi Heavy Industries, Ltd. (Japan) 2,500,000 11,065 .25
Metso Oyj (Finland) 830,000 9,987 .22
Kvaerner ASA, Class A (Norway) (1) 112,000 1,176
Kvaerner ASA, Class A, warrants, expire 2000 (1) 112,000 63 .03
AEROSPACE & MILITARY TECHNOLOGY - 0.65%
Bombardier Inc., Class B (Canada) 1,073,800 29,161 .65
FOREST PRODUCTS & PAPER - 0.63%
UPM-Kymmene Corp. (Finland) 945,000 23,464 .53
Kimberly-Clark de Mexico, SA de CV (Mexico) 1,600,000 4,556 .10
LEISURE & TOURISM - 0.53%
Granada Group PLC (United Kingdom) 1,100,000 11,002 .25
StudioCanal (France) (1) 900,000 9,626 .21
Mandarin Oriental International Ltd. (Singapore) 4,503,661 2,995 .07
WHOLESALE & INTERNATIONAL TRADE - 0.52%
Marubeni Corp. (Japan) 6,780,000 23,304 .52
UTILITIES: ELECTRIC & GAS - 0.47%
Cia. Energetica de Minas Gerais - CEMIG, 826,600 14,259
preferred nominative (ADR) (Brazil)
Cia. Energetica de Minas Gerais - CEMIG, 43,704,048 575 .33
ordinary nominative
Manila Electric Co., Class A (GDR) (Philippines) (2) (3) 612,000 4,450 .10
Scottish Power PLC (United Kingdom) 200,000 1,697 .04
INSURANCE - 0.45%
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 1,624,006 10,558 .24
ING Groep NV (Netherlands) 100,000 6,761 .15
AEGON NV (Netherlands) 80,000 2,847 .06
CONSTRUCTION & HOUSING - 0.39%
YTL Corp. Bhd. (Malaysia) 12,000,000 15,947
YTL Corp. Bhd., warrants, expire 2009 (1) 3,000,000 1,168 .39
GOLD MINES - 0.25%
Anglogold Ltd. (South Africa) 275,000 11,244 .25
REAL ESTATE - 0.22%
Cheung Kong (Holdings) Ltd. (Hong Kong) 500,000 5,532 .13
Brookfield Properties Corp. (Canada) 181,600 2,411 .05
Mitsui Fudosan Co., Ltd. (Japan) 159,000 1,722 .04
TRANSPORTATION: SHIPPING - 0.13%
Stolt-Nielsen SA, Class B (ADR) (Polynational) 327,000 5,866 .13
METALS: NONFERROUS - 0.06%
Pechiney, Class A (France) 65,000 2,713 .06
BEVERAGES & TOBACCO - 0.03%
Coca-Cola Beverages PLC (United Kingdom) (1) 635,937 1012 .03
Coca-Cola Amatil Ltd. (Australia) 91,600 178 .00
MISCELLANEOUS - 1.76%
Other stocks in initial period of acquisition 78,173 1.76
TOTAL STOCKS (cost: $2,290,672,000) 4,103,549 92.12
Principal Market Percent
Amount Value of Net
(000) (000) Assets
Convertible Debentures
MERCHANDISING - 0.22%
EM.TV & Merchandising AG 4.00% 2005 (Germany) EURO11,508 9,726 .22
BROADCASTING & PUBLISHING - 0.20%
United News & Media PLC 6.125% 2003 (United Kingdom) #4,500 9,102 .20
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.09%
COLT Telecom Group PLC 2.00% 2006 (United Kingdom) EURO2,400 3,833 .09
ELECTRICAL & ELECTRONICS - 0.02%
Elektrim SA 3.75% 2004 (Poland) $1,000 917 .02
TOTAL CONVERTIBLE DEBENTURES (cost: $24,146,000) 23,578 .53
TOTAL EQUITY SECURITIES (cost: $2,314,818,000) 4,127,127 92.65
Short Term Securities
CORPORATE SHORT-TERM NOTES - 6.91%
British Telecommunications PLC 6.63% due 8/21/00 47,600 47,149 1.06
France Telecom, SA 6.48%-6.56% due 7/10-7/24/00 (2) 33,400 33,306 .75
Deutsche Bank Financial Inc.6.55% due 8/7-9/20/00 29,350 29,079 .65
BMW US Capital Corp. 6.52%-6.65% due 7/17-8/30/00 25,800 25,651 .57
Den Danske Bank AS 6.51% due 7/13/00 25,000 24,941 .56
Rio Tinto PLC 6.55% due 7/26/00 (2) 25,000 24,882 .56
DaimlerChrysler North America Holding Corp. 25,000 24,810 .56
6.53%-6.55% due 8/4-8/21/00
Halifax Group PLC 6.53% due 8/7/00 21,900 21,749 .49
Corporate Asset Funding Co. Inc. 6.48% due 7/12/00 (2) 16,400 16,364 .37
Societe General North America Inc. 6.57% due 8/10/00 16,000 15,881 .36
Westpac Trust Securities NZ Ltd. 6.87% due 7/3/00 12,500 12,493 .28
Glaxo Wellcome PLC 6.54% due 7/3/00 (2) 12,205 12,198 .27
ANZ (Delaware) Inc. 6.54% due 8/15/00 10,000 9,916 .22
Rio Tinto America, Inc. 6.52% due 7/12/00 (2) 9,400 9,380 .21
NON U.S. GOVERNMENT OBLIGATIONS - 0.36%
Canadian Wheat Board 6.55% due 7/26/00 16,000 15,924 .36
FEDERAL AGENCY DISCOUNT NOTES - 0.25%
Freddie Mac 6.37% due 7/05/00 5,700 5,695 .13
Fannie Mae 6.05%-6.43% due 7/13-7/27/00 5,350 5,333 .12
NON-U.S. CURRENCY - 0.04%
New Taiwanese Dollar NT$67,272 2,195 .04
TOTAL SHORT TERM SECURITIES (cost: $336,711,000) 336,946 7.56
TOTAL INVESTMENT SECURITIES (cost:$2,651,529,000) 4,464,073 100.21
Excess of payables over cash and receivables 9,307 .21
NET ASSETS $4,454,766 100.00
(1) Non-income-producing security.
(2) Purchased in a private placement
transaction; resale to the
public may require registration or
sale only to qualified institutional buyers.
(3) Valued under procedures established by
the Board of Trustees.
(4) When-issued security.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
Equity securities appearing in the
portfolio since December 31, 1999
AdLINK Internet Media
ADVA Optical Networking
Aventis
Brookfield Properties
Cable & Wireless Optus
Canon
China.com
CSL
Dai-Ichi Kangyo Bank
Hyundai Electronics Industries
Industrial Bank of Japan
Infineon Technologies
Intershop Communications
Jobs & Adverts
Liberty Surf Group
Lloyds TSB Group
Marubeni
MIH
Nippon Electric Glass
One.Tel
Promotora de Informaciones
Rakuten
Shionogi
Sonae.com
STMicroelectronics
StudioCanal
Tiscali
Tokyo Broadcasting System
Unibanco-Uniao de Bancos Brasileiros
United Internet
Volvo
Equity securities eliminated from the
portfolio since December 31, 1999
Acer Peripherals
ATI Technologies
Banque Nationale de Paris
Bayerische Motoren Werke
Cadbury Schweppes
Carrefour
Chartered Semiconductor Manufacturing
Coles Myer
ecorp
edel music
Kawasaki Steel
Koninklijke Ahold
Mannesmann
Panamerican Beverages
Paranaense de Energia - COPEL
Partner Communications
SK Telecom
SmithKline Beecham
Societe Europeenne des Satellites
Sony Music Entertainment
South African Breweries
Square
Swisscom
Telstra
Westpac Banking
Zhenhai Refining & Chemical
</TABLE>
<TABLE>
AMERICAN FUNDS INSURANCE SERIES
NEW WORLD FUND
AS OF 06/30/2000
<S> <C>
Asia/Pacific Rim 29.13%
The Americas 28.53%
Europe 15.00%
Other 7.34%
Cash Equivalents 20.00%
Ten Largest Holdings Percent of Net Assets
Samsung Electronics 3.46%
Samsung Electro-Mechanics 2.18
Avon Products 2.08
Coca-Cola 1.88
Hon Hai Precision Industry 1.76
Unibanco-Uniao de Bancos Brasileiros 1.70
Tele Nordeste Celular Participacoes 1.57
Telefonos de Mexico 1.55
Check Point Software Technologies 1.50
Shinhan Bank 1.34
</TABLE>
<TABLE>
New World Fund
Investment Portfolio, June 30, 2000 (unaudited)
<S> <C> <C> <C>
Market Percent
Number of Value of Net
STOCKS (common and preferred) Shares (000) Assets
ELECTRONIC COMPONENTS - 8.41%
Samsung Electronics Co., Ltd. (South Korea) 14,730 $4,875 3.46%
Samsung Electro-Mechanics Co. (South Korea)(1) 48,900 3,066 2.18
Hon Hai Precision Industry Co. Ltd. (Taiwan)(1) 274,000 2,485 1.76
Venture Manufacturing (Singapore) Ltd. (Singapore) 66,000 672 .48
Omni Industries Ltd. (Singapore) 273,000 450 .32
Metalink Ltd. (Israel)(1) 10,000 296 .21
BANKING - 8.34%
Unibanco-Uniao de Bancos Brasileiros SA, 83,400 2,398 1.70
units (GDR) (Brazil)
Shinhan Bank (South Korea) 199,500 1,879 1.34
ABN AMRO Holding NV (Netherlands) 74,303 1,821 1.29
DBS Group Holdings Ltd. (Singapore) 97,692 1,256 .89
Kookmin Bank (South Korea) 80,000 1,019 .72
Yapi ve Kredi Bankasi AS (Turkey) 80,082,530 891 .63
Wielkopolski Bank Kredytowy SA (Poland) 123,978 724 .51
Bangkok Bank PCL (Thailand)(1) 580,000 711 .51
Standard Chartered Bank (United Kingdom) 41,705 520 .37
Australia and New Zealand Banking Group Ltd. (Australia) 55,000 421 .30
Hanvit Bank (South Korea)(1) 41,000 105 .08
DIVERSIFIED TELECOMMUNICATION SERVICES - 6.77%
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 38,200 2,182 1.55
Magyar Tavkozlesi Rt. (ADR) (Hungary) 41,300 1,422 1.01
FirstCom Corp. (USA)(1) 52,100 785 .56
Cia. Anonima Nacional Telefonos de Venezuela 28,000 761 .54
(CANTV), Class D (ADR) (Venezuela)
Nortel Inversora SA, preferred, Class B (ADR) (Argentina) 38,000 722 .51
Philippine Long Distance Telephone Co. (Philippines) 30,800 553 .39
Telefonica de Argentina SA, Class B (ADR) (Argentina) 17,000 540 .38
Videsh Sanchar Nigam Ltd. (GDR) (India) 31,200 491 .35
Bell Canada International Inc. (Canada)(1) 16,000 465 .33
Korea Telecom Corp. (ADR) (South Korea) 7,000 339 .24
Telecom Argentina STET-France Telecom SA, 12,000 330 .24
Class B (ADR) (Argentina)
Mahanagar Telephone Nigam Ltd. (GDR) (India) 26,000 273 .19
Global TeleSystems Group, Inc. (USA)(1) 22,200 268 .19
Global Light Telecommunications Inc. (Canada)(1)(2) 22,500 221 .16
FLAG Telecom Holdings Ltd. (Bermuda)(1) 11,600 173 .12
Societe Europeenne de Communication SA, 1,328 6 .01
Class B (Luxembourg) (1)
HEALTH & PERSONAL CARE - 5.49%
Avon Products, Inc. (USA) 65,800 2,928 2.08
AstraZeneca PLC (United Kingdom) 28,500 1,327 .94
Kimberly-Clark Corp. (USA) 20,600 1,182 .84
PLIVA dd (GDR) (Croatia) 90,000 936 .66
Teva Pharmaceutical Industries Ltd. (ADR) (Israel) 16,000 887 .64
Pfizer Inc (USA) 9,700 466 .33
WIRELESS TELECOMMUNICATION SERVICES - 5.29%
Tele Nordeste Celular Participacoes SA, 32,000 2,216 1.57
preferred nominative (ADR) (Brazil)
Tele Sudeste Celular Participacoes SA, 48,900 1,491 1.06
preferred nominative (ADR) (Brazil)
Telesp Celular Participacoes SA, preferred 60,556,751 1,096 .79
nominative (Brazil)
Nuevo Grupo Iusacell, SA de CV, Class V (ADR) (Mexico)(1) 69,000 1,078 .77
China Telecom (Hong Kong) Ltd. (People's 120,000 1,058 .75
Republic of China)(1)
Telemig Celular Participacoes SA, preferred 6,000 429 .30
nominative (ADR) (Brazil)
Tele Celular Sul Participacoes SA, preferred 1,700 77 .05
nominative (ADR) (Brazil)
BEVERAGES & TOBACCO - 3.83%
Coca-Cola Co. (USA) 46,000 2,642 1.88
Fomento Economico Mexicano, SA de CV (ADR) (Mexico) 20,400 878 .62
PepsiCo, Inc. (USA) 16,500 733 .52
Philip Morris Companies Inc. (USA) 14,700 390 .28
Coca-Cola Amatil Ltd. (Australia) 170,878 332 .24
South African Breweries PLC (United Kingdom) 40,000 299 .20
Coca-Cola Beverages PLC (United Kingdom)(1) 78,000 124 .09
ELECTRICAL & ELECTRONICS - 3.22%
ECI Telecom Ltd. (Israel) 40,000 1,430 1.02
Locus Co., Ltd. (South Korea) 11,800 958 .68
Trigem Computer Inc. (South Korea) 40,710 816 .58
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 40,000 793 .56
Lucent Technologies Inc. (USA) 9,000 533 .38
FOOD & HOUSEHOLD PRODUCTS - 3.02%
Nestle SA (Switzerland) 535 1,071 .76
Sara Lee Corp. (USA) 46,700 902 .64
Santa Isabel SA (ADR) (Chile)(1) 113,000 869 .62
Groupe Danone (France) 6,200 823 .58
PT Indofood Sukses Makmur Tbk (Indonesia)(1) 660,000 360 .26
Uni-President Enterprises Co. (Taiwan)(1) 300,000 229 .16
BROADCASTING & PUBLISHING - 2.60%
Grupo Televisa, SA, ordinary participation 9,600 662 .47
certificates (ADR) (Mexico)(1)
M-Web Holdings Ltd. (formerly MIH Holdings Ltd.), 17,600 529 .38
Class A (South Africa)(1)
Matav-Cable Systems Media Ltd. (Israel) 23,000 464 .33
Independent News & Media PLC (Ireland) 118,600 430 .31
Globo Cabo, preferred nominative (ADR) (Brazil)(1) 30,000 416 .30
United Pan-Europe Communications NV (Netherlands)(1) 15,000 392 .27
Nasionale Pers Beperk, Class N (South Africa) 42,500 354 .25
Antenna TV SA (ADR) (Greece)(1) 18,700 290 .21
Promotora de Informaciones, SA (Spain) (1) 5,100 118 .08
IT CONSULTING & SERVICES - 2.39%
Check Point Software Technologies Ltd. (Israel)(1) 10,000 2,118 1.50
Dimension Data Holdings Ltd. (South Africa)(1) 150,000 1,242 .89
MULTI-INDUSTRY - 2.34%
Orkla AS (Norway) 86,142 1,638 1.16
Anglo American PLC (United Kingdom) 10,000 476 .34
Benpres Holdings Corp. (Philippines)(1) 4,388,000 422 .30
First Pacific Co. Ltd. (Hong Kong) 1,046,381 356 .25
Industriforvaltnings AB Kinnevik, Class B (Sweden) 9,300 238 .17
China Merchants Holdings Co., Ltd. (Honk Kong) 240,000 165 .12
METALS: NONFERROUS - 1.68%
Alcoa Inc. (USA) 41,400 1,201 .85
KGHM Polska Miedz SA (GDR) (Poland) 54,000 807 .58
Freeport-McMoRan Copper & Gold Inc., Class B (USA)(1) 31,000 287 .20
Billiton PLC (United Kingdom) 17,000 69 .05
AUTOMOBILES - 1.65%
Suzuki Motor Corp. (Japan) 104,000 1,340 .95
Honda Motor Co., Ltd. (Japan) 29,000 986 .70
BUSINESS SERVICES - 1.61%
TTI Team Telecom International Ltd. (Israel)(1) 22,250 801 .57
Sabre Group Holdings, Inc., Class A (USA)(1) 24,155 688 .49
New World Infrastructure Ltd. (Hong Kong)(1) 770,000 682 .48
Seminis, Inc., Class A (USA)(1) 39,200 103 .07
RECREATION OTHER CONSUMER PRODUCTS - 1.57%
Fuji Photo Film Co., Ltd. (Japan) 44,000 1,798 1.28
Shimano Inc. (Japan) 17,000 408 .29
MERCHANDISING - 1.42%
Migros Turk TAS (Turkey) 7,065,000 1,311 .93
Giordano International Ltd. (Hong Kong) 450,000 684 .49
REAL ESTATE - 1.36%
SM Prime Holdings, Inc. (Philippines) 6,587,000 794 .56
IRSA Inversiones y Representaciones SA (Argentina) 94,300 217
IRSA Inversiones y Representaciones SA (GDR) 9,070 208 .30
New World China Land Ltd. (People's Republic 1,225,000 361 .26
of China - Incorporated in Cayman Islands)(1)
Ayala Land, Inc. (Philippines) 2,594,400 331 .24
WHOLESALE & INTERNATIONAL TRADE - 1.25%
Marubeni Corp. (Japan) 273,000 938 .67
Li & Fung Ltd. (Hong Kong--Incorporated in Bermuda) 164,000 820 .58
FINANCIAL SERVICES - 1.22%
Housing Development Finance Corp. Ltd (India) 136,550 1,712 1.22
FOREST PRODUCTS & PAPER - 0.95%
Kimberly-Clark de Mexico, SA de CV, Class A (Mexico) 296,600 845 .60
Votorantim Celulose e Papel SA (ADR) (Brazil) 27,000 496 .35
ENERGY SOURCES - 0.88%
Broken Hill Proprietary Co. Ltd. (Australia) 70,558 832 .59
Gulf Indonesia Resources Ltd. (Indonesia)(1) 50,000 400 .29
LEISURE & TOURISM - 0.82%
Millennium & Copthorne Hotels PLC (United Kingdom) 185,000 1,158 .82
ELECTRONIC INSTRUMENTS - 0.79%
Orbotech Ltd. (Israel)(1) 12,000 1,115 .79
MISCELLANEOUS MATERIALS & COMMODITIES - 0.74%
De Beers Consolidated Mines Ltd. (South Africa) 43,000 1,047 .74
MACHINERY & ENGINEERING - 0.61%
Mitsubishi Heavy Industries, Ltd. (Japan) 193,000 854 .61
UTILITIES: ELECTRIC & GAS - 0.56%
Huaneng Power International, Inc., Class H 2,400,000 785 .56
(People's Republic of China)
DATA PROCESSING & REPRODUCTION - 0.51%
Great Wall Technology Co. Ltd., Class H 1,030,000 714 .51
(People's Republic of China)
APPLIANCES & HOUSEHOLD DURABLES - 0.46%
Sony Corp. (Japan) 7,000 653 .46
CONSTRUCTION & HOUSING - 0.42%
Cheung Kong Infrastructure Holdings Ltd. (Hong Kong) 360,000 591 .42
METALS: STEEL - 0.29%
Tubos de Acero de Mexico, SA (ADR) (Mexico) 30,000 416 .29
TRANSPORTATION: AIRLINES - 0.25%
AMR Corp. (USA)(1) 13,500 357 .25
MISCELLANEOUS - 0.81%
Other stocks in initial period of acquisition 1,147 .81
TOTAL STOCKS (cost: $98,752,000) 100,739 71.55
Principal
Amount
CONVERTIBLE DEBENTURES (000)
ELECTRONIC COMPONENTS - 0.19%
NatSteel Electronics Ltd. 1.50% 2004 (Singapore) $267 267 .19
ELECTRICAL & ELECTRONICS - 0.16%
Elektrim SA 3.75% 2004 (Poland) 250 229 .16
TOTAL CONVERTIBLE DEBENTURES (cost: $632,000) 496 .35
TOTAL EQUITY SECURITIES (cost: $99,384,000) 101,235 71.90
BONDS & NOTES
WIRELESS TELECOMMUNICATION SERVICES - 0.32%
Cellco Finance NV 12.75% 2005 250 261 .19
PTC International Finance BV 0%/10.75% 2007(4) 250 178 .13
MULTI-INDUSTRY - 0.15%
Reliance Industries Ltd. 10.25% 2097 250 216 .15
NON-U.S. GOVERNMENT OBLIGATIONS - 7.61%
Brazil (Federal Republic of):
Bearer 8.00% 2014(5) 2,734 2,016
Global 14.50% 2009 1,000 1,070
Global 10.125% 2027 1,000 790 2.75
United Mexican States Government Eurobonds, Global:
11.375% 2016 487 558
9.875% 2007 500 516
11.50% 2026 300 362
10.375% 2009 250 266 1.21
Russia, Principal Loan 7.938% 2020(6) 3,500 1,081 .77
Argentina (Republic of):
11.75% 2009 900 839
12.00% 2020 250 234 .76
Panama (Republic of), Past Due Interest 1,274 1,048 .74
Eurobond 7.063% 2016(6)
Turkey (Republic of) 11.875% 2030 750 800 .57
Philippines (Republic of) 9.875% 2019 500 410 .29
Croatian Government:(6)
Series A, 7.033% 2010 348 317
Series B, 7.063% 2006 76 72 .28
Poland (Republic of), Past Due Interest Bond, 375 335 .24
Bearer 6.00% 2014(6)
Total BONDS & NOTES (cost: $11,023,000) 11,369 8.08
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 17.24%
BMW US Capital Corp. 6.53% due 7/19/00 3,500 3,488 2.48
PepsiCo, Inc. 6.50% due 7/27/00 3,300 3,284 2.34
Asset Securization Corp. 6.62% due 7/26/00(2) 2,400 2,389 1.70
Associates First Capital Corp. 6.85% due 7/3/00 2,300 2,298 1.63
Wal-Mart Stores, Inc. 6.51% due 7/25/00(2) 2,300 2,290 1.63
Rio Tinto America, Inc. 6.95% due 7/5/00(2) 2,200 2,198 1.56
Pharmacia Corp. 6.52% due 7/24/00 1,800 1,792 1.27
France Telecom, SA 6.58% due 7/6/00 (2) 1,751 1,749 1.24
Coca-Cola Co. 6.52% due 7/10/00 1,600 1,597 1.13
Bell Atlantic Network Funding Corp. 6.50% due 7/24/00 1,600 1,593 1.13
Dresdner U.S. Finance Inc. 6.56% due 7/25/00 1,600 1,593 1.13
FEDERAL AGENCY DISCOUNT NOTES - 2.12%
Freddie Mac 6.43% due 7/18/00 3,000 2,990 2.12
NON-U.S. CURRENCY - 0.02%
New Taiwanese Dollar NT$640 21 .02
TOTAL SHORT-TERM SECURITIES (cost: $27,281,000) 27,282 19.38
TOTAL INVESTMENT SECURITIES (cost:$137,688,000) 139,886 99.36
Excess of cash and receivable over payables 908 .64
NET ASSETS $140,794 100.00%
1 Non-income-producing security.
2 Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
3 Valued under procedures established by the
Board of Trustees.
4 Step bond; coupon rate will increase at a later date.
5 Payment in kind; the issuer has the option of
paying additional securities in lieu of cash.
6 Coupon rate may change periodically.
ADR=American Depositary Receipts
GDR=Global Depositary Receipts
See Notes to Financial Statements
</TABLE>
AMERICAN FUNDS INSURANCE SERIES
NEW WORLD FUND
AS OF 06/30/2000
Equity securities appearing in the portfolio since December 31, 1999
Australia and New Zealand Banking Group
Bell Canada International
Billiton
Cheung Kong Infrastructure Holdings
China Merchants Holdings
Coca-Cola Beverages
Dimension Data Holdings
FirstCom
FLAG Telecom Holdings
Giordano International
Global Light Telecommunication
Globo Cabo
Great Wall Technology Co.
Groupe Danone
Gulf Indonesia Resources
Hanvit Bank
Housing Development Finance Corp.
Huaneng Power International
Independent News & Media
Industriforvaltnings Kinnevik
IRSA Inversiones y Representaciones
Locus
Lucent Technologies
Metalink
Millennium & Copthorne Hotels
Mitsubishi Heavy Industries
Nasionale Pers Beperk
NatSteel Electronics
Nestle
New World Infrastructure
Nuevo Grupo Iusacell
Omni Industries
Orbotech
PepsiCo
Pfizer
Philip Morris
Promotora de Informaciones
Santa Isabel
Shimano
Societe Europeenne de Communication
Tele Celular Sul Participacoes
Tele Nordeste Celular Participacoes
Telemig Celular Participacoes
Teva Pharmaceutical Industries
TTI Team Telecom International
Tubos de Acero de Mexico
Uni-President Enterprises
United Pan-Europe Communications
Votorantim Celulose e Papel
equity securities eliminated from the portfolio
since December 31, 1999
Carrefour
Colgate-Palmolive
Korea Thrunet
MOL Magyar Olaj-es Gazipari
Partner Communictions
Terra Networks
<TABLE>
VARIABLE INSURANCE - GROWTH INCOME
JUNE 30, 2000
Investment Mix by Security Type:
<S> <C>
Equity securities 84.17%
Cash & Equivalents 15.83%
100.00%
Largest Individual Equity Securities
U S WEST Communications 2.03%
Viacom 1.83
Albertson's 1.64
Texas Instruments 1.55
Household International 1.38
News Corp. 1.32
Bank of America 1.31
Computer Associates International 1.26
Allied Waste Industries 1.22
Wells Fargo 1.20
</TABLE>
<TABLE>
American Funds Insurance Series Growth Income Fund
Investment Portfolio, June 30, 2000
(Unaudited)
<S> <C> <C> <C>
Number of Market Percent
Shares Value of Net
Stocks (common and preferred) (000) Assets
HEALTH & PERSONAL CARE - 7.32%
Pfizer Inc 1,912,500 $91,800 1.19%
Avon Products, Inc. 1,950,000 86,775 1.12
Bristol-Myers Squibb Co. 1,350,000 78,637 1.02
Guidant Corp. (1) 1,500,000 74,250 .96
Kimberly-Clark Corp. 1,040,000 59,670 .77
Merck & Co., Inc. 500,000 38,313 .49
Cardinal Health, Inc. 500,000 37,000 .48
AstraZeneca PLC (ADR) (United Kingdom) 756,750 35,189 .45
Pharmacia Corp. (formerly Monsanto Co.) 625,000 32,305 .42
Schering-Plough Corp. 330,000 16,665 .21
Bergen Brunswig Corp., Class A 1,800,000 9,900 .13
McKesson HBOC, Inc. 300,000 6,281 .08
MERCHANDISING - 7.17%
Albertson's, Inc. 3,823,700 127,138 1.64
Dollar General Corp. 3,250,000 63,375 .82
Walgreen Co. 1,900,000 61,156 .79
J.C. Penney Co., Inc. 2,525,000 46,555 .60
Lowe's Companies, Inc. 1,100,000 45,169 .58
May Department Stores Co. 1,800,000 43,200 .56
Dillard's, Inc., Class A 2,950,000 36,137 .47
Gap, Inc. 1,125,000 35,156 .46
AutoZone, Inc. (1) 1,500,000 33,000 .43
Limited Inc. 1,300,000 28,113 .36
Too, Inc. (1) 700,000 17,806 .23
Federated Department Stores, Inc. (1) 500,000 16,875 .22
Circuit City Stores, Inc. - Circuit City Group 30,000 996 .01
554,676 7.17
DATA PROCESSING & REPRODUCTION - 6.53%
Computer Associates International, Inc. 1,900,000 97,256 1.26
Xerox Corp. 3,350,000 69,513 .89
Storage Technology Corp. (1) 3,811,100 41,684 .54
3Com Corp. (1) 700,000 40,338 .52
Microsoft Corp. (1) 500,000 40,000 .52
International Business Machines Corp. 360,000 39,443 .51
Lexmark International Group, Inc., Class A (1) 537,000 36,113 .47
Cadence Design Systems, Inc. (1) 1,325,000 26,997 .35
Gateway, Inc. (1) 474,400 26,922 .35
Autodesk, Inc. 700,000 24,281 .31
Compaq Computer Corp. 900,000 23,006 .30
Hewlett-Packard Co. 150,000 18,731 .24
Dell Computer Corp. (1) 300,000 14,794 .19
Silicon Graphics, Inc. (1) 1,724,300 6,466 .08
505,544 6.53
ENERGY SOURCES - 6.02%
Petro-Canada (Canada) 3,800,000 70,979 .92
Texaco Inc. 1,300,000 69,225 .90
Conoco Inc., Class A 1,674,000 36,828
Conoco Inc., Class B 491,369 12,069 .63
Phillips Petroleum Co. 950,000 48,153 .62
Devon Energy Corp. 800,000 44,950 .58
Kerr-McGee Corp. 675,000 39,783 .51
Valero Energy Corp. 1,100,000 34,925 .45
"Shell" Transport and Trading Co., PLC (United Kingdom) 450,000 22,472 .29
Sunoco, Inc. 750,000 22,078 .29
USX-Marathon Group 750,000 18,797 .24
Chevron Corp. 185,000 15,690 .20
Noble Affiliates, Inc. 344,000 12,814 .17
Ashland Inc. 250,000 8,766 .11
Ultramar Diamond Shamrock Corp. 326,400 8,099 .11
465,628 6.02
BUSINESS SERVICES - 5.89%
Allied Waste Industries, Inc. (1) 9,425,000 94,250 1.22
Pitney Bowes Inc. 1,282,200 51,288 .66
Waste Management, Inc. 2,400,000 45,600 .59
FedEx Corp. (1) 900,000 34,200 .44
United Parcel Service, Inc., Class B 511,400 30,172 .39
PSINet Inc. (1) 1,200,000 30,150 .39
Cendant Corp. (1) 2,050,000 28,700 .37
Galileo International, Inc. 1,100,000 22,963 .30
Alexander & Baldwin, Inc. 1,020,000 22,504 .29
ServiceMaster Co. 1,600,000 18,200 .23
Interpublic Group of Companies, Inc. 410,000 17,630 .23
IKON Office Solutions, Inc. 4,050,000 15,694 .20
Equifax Inc. 500,000 13,125 .17
Concord EFS, Inc. (1) 500,000 13,000 .17
Digex, Inc., Class A (1) 150,000 10,191 .13
SAVVIS Communications Corp. (1) 612,000 7,994 .11
455,661 5.89
BANKING - 5.74%
Bank of America Corp. 2,350,000 101,050 1.31
Wells Fargo & Co. 2,397,000 92,884 1.20
First Union Corp. 1,772,800 43,988 .57
BANK ONE CORP. 1,528,712 40,606 .52
Bank of New York Co., Inc. 800,000 37,200 .48
Chase Manhattan Corp. 600,000 27,637 .36
Citigroup Inc. 381,900 23,009 .30
J.P. Morgan & Co. Inc. 150,000 16,519 .21
KeyCorp 900,000 15,862 .20
Sakura Bank, Ltd. (ADR) (Japan) 200,000 13,713 .18
SunTrust Banks, Inc. 280,000 12,793 .17
FleetBoston Financial Corp. (formerly Fleet Boston Corp.) 350,000 11,900 .15
Bank of Tokyo-Mitsubishi, Ltd. (ADR) (Japan) 600,000 7,275 .09
444,436 5.74
BROADCASTING & PUBLISHING - 5.43%
Viacom Inc., Class B (1) 2,075,000 141,489 1.83
News Corp. Ltd. (ADR) (Australia) 1,100,000 59,950
News Corp. Ltd., preferred (ADR) 900,000 42,750 1.32
Harte-Hanks Inc. (formerly Harte-Hanks 2,157,500 53,937 .71
Communications, Inc.)
Time Warner Inc. 500,000 38,000 .49
Media General, Inc., Class A 555,100 26,957 .35
Fox Entertainment Group, Inc., Class A (1) 700,000 21,263 .27
Gannett Co., Inc. 350,000 20,934 .27
E.W. Scripps Co., Class A 226,000 11,131 .14
Sinclair Broadcast Group, Inc., Class A (1) 360,000 3,960 .05
420,371 5.43
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.29%
U S WEST Communications, Inc. 1,830,000 156,922 2.03
GTE Corp. 1,035,000 64,429 .83
AT&T Corp. 1,300,000 41,112 .53
SBC Communications Inc. 726,400 31,417 .41
Intermedia Communications Inc. (1) 700,000 20,825 .27
Rhythms NetConnections Inc. 6.75% convertible preferred 188 8,648 .11
Qwest Communications International Inc. (1) 170,000 8,447 .11
331,800 4.29
FOOD & HOUSEHOLD PRODUCTS - 3.57%
Nabisco Group Holdings Corp. 2,950,000 76,516 .99
Sara Lee Corp. 3,700,000 71,456 .92
H.J. Heinz Co. 750,000 32,813 .42
Flowers Industries, Inc. 1,500,000 29,906 .39
General Mills, Inc. 620,000 23,715 .31
Campbell Soup Co. 800,000 23,300 .30
Ralston Purina Co. 500,000 9,969 .13
Colgate-Palmolive Co. 150,000 8,981 .11
276,656 3.57
FINANCIAL SERVICES - 2.50%
Household International, Inc. 2,563,320 106,538 1.38
Capital One Financial Corp. 630,000 28,114 .36
Providian Financial Corp. 300,000 27,000 .35
Associates First Capital Corp., Class A 750,000 16,734 .22
MBNA Corp. 470,000 12,749 .16
FINOVA Group Inc. 160,000 2,080 .03
193,215 2.50
ELECTRONIC COMPONENTS - 2.48%
Texas Instruments Inc. 1,750,000 120,203 1.55
SCI Systems, Inc. (1) 826,600 32,392 .42
Thomas & Betts Corp. 700,000 13,388 .17
Micron Technology, Inc., Class B (1) 150,000 13,209 .17
MIPS Technologies, Inc. (1) 238,953 9,200 .12
Quantum Corp. - DLT & Storage Systems (1) 400,000 3,875 .05
192,267 2.48
INSURANCE - 2.48%
American General Corp. 950,000 57,950 .75
Allstate Corp. 2,062,500 45,890 .59
Aetna Inc. 406,400 26,086 .34
Allmerica Financial Corp. 454,600 23,810 .31
MGIC Investment Corp. 400,000 18,200 .23
Royal & Sun Alliance Insurance Group PLC (United Kingdom) 2,500,000 16,252 .21
St. Paul Companies, Inc. 107,800 3,679 .05
191,867 2.48
FOREST PRODUCTS & PAPER - 2.35%
Bowater Inc. 1,245,000 54,936 .71
Fort James Corp. 1,919,499 44,389 .57
Weyerhaeuser Co. 600,000 25,800 .33
International Paper Co. 750,000 22,359 .29
Sonoco Products Co. 800,000 16,450 .21
Georgia-Pacific Corp., Georgia-Pacific Group 400,000 10,500
Georgia-Pacific Corp., Timber Group 150,000 3,244 .18
Westvaco Corp. 187,500 4,652 .06
182,330 2.35
ELECTRICAL & ELECTRONICS - 1.70%
York International Corp. (2) 1,902,900 48,048 .62
Cisco Systems, Inc. (1) 400,000 25,425 .33
Lucent Technologies Inc. 400,000 23,700 .30
Nokia Corp., Class A (ADR) (Finland) 360,000 17,978 .23
Harris Corp. 500,000 16,375 .21
Lanier Worldwide, Inc. (1) 500,000 500 .01
132,026 1.70
UTILITIES: ELECTRIC & GAS - 1.65%
Ameren Corp. 1,145,400 38,657 .50
Duke Energy Corp. 500,000 28,188 .36
GPU, Inc. 850,000 23,003 .30
TECO Energy, Inc. 1,000,000 20,063 .26
FPL Group, Inc. 195,600 9,682 .12
American Electric Power Co., Inc. 275,000 8,147 .11
127,740 1.65
CHEMICALS - 1.38%
Millennium Chemicals Inc. 2,741,600 46,607 .60
International Flavors & Fragrances Inc. 1,100,000 33,206 .43
PPG Industries, Inc. 350,000 15,509 .20
Air Products and Chemicals, Inc. 200,000 6,163 .08
Crompton Corp. (formerly CK Witco Corp.) 462,100 5,661 .07
107,146 1.38
BEVERAGES & TOBACCO - 1.38%
Philip Morris Companies Inc. 1,590,000 42,234 .55
PepsiCo, Inc. 600,000 26,663 .34
R.J. Reynolds Tobacco Holdings, Inc. 733,333 20,487 .27
UST Inc. 700,000 10,281 .13
Coca-Cola Co. 120,000 6,893 .09
106,558 1.38
ELECTRONIC INSTRUMENTS - 1.37%
Applied Materials, Inc. (1) 950,000 86,094 1.11
PE Biosystems Group 300,000 19,762 .26
105,856 1.37
MACHINERY & ENGINEERING - 1.28%
Deere & Co. 597,700 22,115 .29
Ingersoll-Rand Co. 525,000 21,131 .27
CNH Global NV (formerly New Holland NV) (Netherlands) 1,700,000 15,725 .20
Millipore Corp. 200,000 15,075 .20
Pall Corp. 700,000 12,950 .17
Caterpillar Inc. 350,000 11,856 .15
98,852 1.28
TRANSPORTATION: RAIL & ROAD - 1.22%
Burlington Northern Santa Fe Corp. 1,225,000 28,098 .36
Norfolk Southern Corp. 1,500,000 22,312 .29
CSX Corp. 975,000 20,658 .27
Canadian National Railway Co. (Canada) 600,000 17,513 .23
Union Pacific Corp. 150,000 5,578 .07
94,159 1.22
MULTI-INDUSTRY - 1.14%
FMC Corp. (1) 550,000 31,900 .41
BFGoodrich Co. 800,000 27,250 .35
Honeywell International Inc. 500,000 16,844 .22
Loews Corp. 200,000 12,000 .16
87,994 1.14
TEXTILES & APPAREL - 1.13%
NIKE, Inc., Class B 1,811,900 72,136 .93
VF Corp. 650,000 15,478 .20
87,614 1.13
INDUSTRIAL COMPONENTS - 1.01%
Eaton Corp. 440,000 29,480 .38
TRW Inc. 600,000 26,025 .34
Illinois Tool Works Inc. 150,000 8,550 .11
Tower Automotive, Inc. (1) 400,000 5,000 .06
Dana Corp. 231,800 4,911 .06
Federal-Mogul Corp. 443,400 4,240 .06
78,206 1.01
LEISURE & TOURISM - 0.91%
Walt Disney Co. 925,000 35,902 .46
Seagram Co. Ltd. (Canada) 600,000 34,800 .45
70,702 .91
AEROSPACE & MILITARY TECHNOLOGY - 0.86%
United Technologies Corp. 623,200 36,691 .47
Raytheon Co., Class B 1,000,000 19,250
Raytheon Co., Class A 546,700 10,626 .39
66,567 .86
REAL ESTATE - 0.78%
Boston Properties, Inc. 850,000 32,831 .42
Equity Residential Properties Trust 600,000 27,600 .36
60,431 .78
RECREATION OTHER CONSUMER PRODUCTS - 0.78%
Pennzoil-Quaker State Co. 3,630,900 43,798 .57
Mattel, Inc. 1,250,000 16,484 .21
60,282 .78
MISCELLANEOUS MATERIALS & COMMODITIES - 0.68%
Owens-Illinois, Inc. (1) 3,000,000 35,062 .46
Crown Cork & Seal Co., Inc. 1,150,000 17,250 .22
52,312 .68
ENERGY EQUIPMENT - 0.67%
Schlumberger Ltd. (Netherlands Antilles) 700,000 52,237 .67
WIRELESS TELECOMMUNICATION SERVICES - 0.65%
Western Wireless Corp., Class A (1) 410,000 22,345 .29
Dobson Communications Corp., Class A (1) 1,088,700 20,957 .27
Triton PCS Holdings, Inc., Class A (1) 117,000 6,757 .09
50,059 .65
HEALTH CARE PROVIDERS & SERVICES - 0.44%
United Health Group Inc. (formerly United HealthCare Corp.) 250,000 21,437 .28
Service Corp. International 4,000,000 12,750 .16
34,187 .44
METALS: NONFERROUS - 0.43%
Alcoa Inc. 1,160,000 33,640 .43
TRANSPORTATION: AIRLINES - 0.24%
Southwest Airlines Co. 1,000,000 18,938 .24
MISCELLANEOUS - 2.51%
Other stocks in initial period of acquisition 194,465 2.51
TOTAL STOCKS (cost: $5,983,072,000) 6,501,207 83.98
Principal Market Percent
Amount Value of Net
Convertible Debentures (000) (000) Assets
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.19%
Telefonos de Mexico, SA de CV 4.25% 2004 (Mexico) $11,060 14,509 .19
TOTAL CONVERTIBLE DEBENTURES (cost: $10,764,000) 14,509 .19
TOTAL EQUITY SECURITIES (cost: $5,993,836,000) 6,515,716 84.17
Short-Term Securities
CORPORATE SHORT-TERM NOTES - 13.11%
Gannett Co., Inc. 6.52% due 7/21/00 50,000 49,809 .64
Bellsouth Capital Funding Corp. 6.44%-6.53% 49,900 49,585 .64
due 7/10-8/21/00 (3)
H.J. Heinz Co. 6.52%-6.53% due 7/18-8/16/00 48,150 47,868 .62
Bell Atlantic Network Funding Corp. 6.53%-6.54% 45,000 44,835 .58
due 7/14-7/25/00
Preferred Receivables Funding Corp. 6.57%-6.58% 45,000 44,788 .58
due 7/18-8/1/00 (3)
Wal-Mart Stores, Inc. 6.53% due 8/8-8/14/00 (3) 45,000 44,668 .58
Pharmacia Corp. 6.52%-6.60% due 7/19-7/25/00 41,825 41,665 .54
Emerson Electric Co. 6.53%-6.55% due 7/6-8/4/00 (3) 40,800 40,577 .52
Fortune Brands Inc. 6.18% due 7/17/00 (3) 40,000 39,876 .51
Corporate Asset Funding Co., Inc. 6.48%-6.57% 37,000 36,839 .48
due 7/12-8/3/00 (3)
Ford Motor Credit Co. 6.53%-6.56% due 7/19-7/26/00 36,700 36,554 .47
Alcoa Inc. 6.55%-6.57% due 7/11-8/22/00 35,800 35,536 .46
Park Avenue Receivables Corp. 6.55%-6.58% 32,700 32,603 .42
due 7/13-7/20/00 (3)
Coca-Cola Co. 6.44%-6.45% due 7/7-7/14/00 31,800 31,741 .41
AT&T Corp. 6.56% due 7/11/00 31,000 30,938 .40
Motiva Enterprises LLC 6.47%-6.53% due 7/6-7/12/00 30,000 29,946 .39
E.I. du Pont de Nemours and Co. 6.50% due 7/20/00 30,000 29,892 .39
Sara Lee Corp. 6.50%-6.57% due 7/13-7/17/00 29,200 29,113 .38
SBC Communications Inc. 6.14% due 7/13/00 (3) 28,000 27,934 .36
International Lease Finance Corp. 6.55%-6.56% due 7/24/00 26,000 25,886 .33
USAA Capital Corp. 6.53%-6.55% due 7/25-8/8/00 25,500 25,354 .33
Colgate-Palmolive Co. 6.51% due 7/17-7/26/00 (3) 25,369 25,266 .33
Campbell Soup Co. 6.54%-6.56% due 7/26/00 25,000 24,882 .32
Duke Energy Corp. 6.52% due 8/2/00 25,000 24,851 .32
General Motors Acceptance Corp. 6.55%-6.56% 25,000 24,840 .32
due 7/14-8/11/00
Anheuser-Busch Companies, Inc. 6.52% due 8/16/00 25,000 24,787 .32
Kellogg Co. 6.52% due 8/16/00 25,000 24,786 .32
Golden Peanut Co. 6.53%-6.57% due 8/1-8/28/00 24,700 24,507 .32
John Hancock Capital Corp. 6.53% due 7/14-8/15/00 (3) 23,600 23,502 .30
Eastman Kodak Co. 6.60% due 8/17/00 18,000 17,843 .23
Estee Lauder Companies Inc. 6.51% due 7/18/00 (3) 13,005 12,963 .17
Johnson & Johnson 6.54% due 8/1/00 (3) 10,405 10,345 .13
1,014,579 13.11
FEDERAL AGENCY DISCOUNT NOTES - 1.66%
Freddie Mac 6.37%-6.435% due 7/5-8/8/00 54,500 54,178 .70
Fannie Mae 6.03%-6.50% due 7/6-9/21/00 39,260 38,881 .50
Federal Home Loan Banks 6.41%-6.55% due 7/3-8/2/00 35,500 35,450 .46
128,509 1.66
TOTAL SHORT-TERM SECURITIES (cost: $1,143,102,000) 1,143,088 14.77
TOTAL INVESTMENT SECURITIES (cost: $7,136,938,000) 7,658,804 98.94
Excess of cash and receivables over payables 82,227 1.06
NET ASSETS $7,741,031 100.00%
1 Non-income-producing security.
2 The fund owns 5.01% of the outstanding voting
securities of York
International Corp., and thus is considered
an affiliate as defined
under the Investment Company Act of 1940.
3 Purchased in a private placement transaction;
resale to the public
may require registration or sale only
to qualified institutional
buyers.
ADR = American Depositary Receipts
See Notes to Financial Statements
</TABLE>
VARIABLE INSURANCE - GROWTH INCOME
JUNE 30, 2000
Equity securities appearing in the portfolio since December 31, 1999
Allmerica Financial
BFGoodrich
Cadence Design Systems
Coca-Cola
Concord EFS
Dell Computer
Devon Energy
Digex
Dillard's
Dobson Communications
FedEx
Flowers Industries
FPL Group
Galileo International
Georgia-Pacific, Georgia-Pacific Group
H.J. Heinz
Intermedia Communications
Interpublic Group
Lucent Technologies
May Department Stores
Micron Technology
MIPS Technologies
PSINet
Ralston Purina
Rhythms NetConnections
SAVVIS Communications
"Shell" Transport and Trading
Sinclair Broadcast Group
St. Paul
Thomas & Betts
Triton PCS Holdings
TRW
United Parcel Service
Walgreen
Walt Disney
Equity securities eliminated from the portfolio since December 31, 1999
Allegheny Technologies
AT&T - Liberty Media Group
Atlantic Richfield
Baker Hughes
Boeing
BP Amoco
Circuit City Stores - CarMax Group
Citizen's Utilities
Corning
DPL
E.I. du Pont de Nemours
Electronic Data Systems
Eli Lilly
Focal Communcations
Genuine Parts
Glaxo Wellcome
Hartford Financial Services Group
Hertz
Hitachi
Huntington Bancshares
Intel
Knight-Ridder
L-3 Communications
Mallinckrodt
Manpower
MCI WorldCom
MediaOne Group
Murphy Oil
Oracle
Praxair
Telefonaktiebolaget LM Ericsson
Textron
Time Warner Telecom
Washington Mutual
Water Pik Technologies
Young & Rubicam
<TABLE>
American Variable Insurance Series Asset Allocation Fund
Investment Portfolio, June 30, 2000 Unaudited
Percent of
Net Assets
<S> <C> <C> <C>
Equity Securities 61.65%
U.S. Government Bonds 16.85%
Corporate Bonds 16.49%
Non-U.S. Government Bonds 0.00%
Cash & Equivalents 5.01%
LARGEST INDIVIDUAL EQUITY SECURITIES
Corning 2.54%
Nokia 2.50
PepsiCo 2.28
Citigroup 2.27
Pfizer 2.14
Computer Associates International 2.09
Household International 1.95
AstraZeneca 1.92
Albertson's 1.88
United Technologies 1.85
Market Percent
Value of Net
STOCKS (common and preferred) Shares (000) Assets
HEALTH & PERSONAL CARE - 7.17%
Pfizer Inc 712,500 $34,200 2.14%
AstraZeneca PLC (ADR) (United Kingdom) 660,000 30,690 1.92
Bristol-Myers Squibb Co. 395,700 23,050 1.45
Pharmacia Corp. (formerly Monsanto Co.) 365,600 18,897 1.18
Gillette Co. 216,960 7,580 .48
BANKING - 5.97%
Citigroup Inc. 600,000 36,150 2.27
Bank of America Corp. 576,320 24,782 1.55
BANK ONE CORP. 700,000 18,594 1.16
HSBC Capital Funding 9.547% (United Kingdom) (1) 5,000 5,205 .33
Fuji JGB Investment LLC, Series A, 9.87% 2,500 2,414 .15
noncumulative preferred (Japan) (1)
BNP U.S. Funding LLC, Series A, 7.738% 2,500 2,326 .15
noncumulative preferred (France) (1)
First Republic Capital Corp., Series A, 10.50% preferred (1) 2,250 1,991 .12
Tokai Preferred Capital Co. LLC, Series A, 9.98% 1,500 1,457 .09
noncumulative preferred (Japan) (1)
NB Capital Corp. 8.35% exchangeable depositary 60,000 1,380 .09
IBJ Preferred Capital Co. LLC, Series A, 8.79% 1,000 907 .06
noncumulative preferred (Japan) (1)
DATA PROCESSING & REPRODUCTION - 5.79%
Computer Associates International, Inc. 650,000 33,272 2.09
Hewlett-Packard Co. 150,000 18,731 1.17
International Business Machines Corp. 150,000 16,434 1.03
Autodesk, Inc. 400,000 13,875 .87
Xerox Corp. 300,000 6,225 .39
Storage Technology Corp. (2) 352,200 3,852 .24
DIVERSIFIED TELECOMMUNICATION SERVICES - 5.13%
CenturyTel, Inc. 998,350 28,703 1.80
AT&T Corp. 650,000 20,556 1.29
U S WEST, Inc. 200,000 17,150 1.07
Sprint FON Group 250,000 12,750 .80
COLT Telecom Group PLC (ADR) (United Kingdom) (2) 20,000 2,713 .17
MERCHANDISING - 4.67%
Albertson's, Inc. 900,000 29,925 1.88
Limited Inc. 636,546 13,765 .86
J.C. Penney Co., Inc. 628,000 11,579 .73
Walgreen Co. 300,000 9,656 .60
May Department Stores Co. 400,000 9,600 .60
ENERGY SOURCES - 4.21%
Royal Dutch Petroleum Co., New York registered (Netherlands) 360,000 22,162 1.39
Texaco Inc. 250,000 13,312 .83
Chevron Corp. 150,000 12,722 .80
Phillips Petroleum Co. 200,000 10,137 .64
Kerr-McGee Corp. 150,000 8,841 .55
ELECTRICAL & ELECTRONICS - 3.39%
Nokia Corp., Class A (ADR) (Finland) 800,000 39,950 2.50
York International Corp. 450,000 11,363 .72
Emerson Electric Co. 45,000 2,717 .17
ELECTRONIC COMPONENTS - 2.90%
Corning Inc. 150,000 40,481 2.54
Adaptec, Inc. (2) 250,000 5,688 .36
FINANCIAL SERVICES - 2.61%
Household International, Inc. 750,000 31,172 1.95
Fannie Mae 200,000 10,438 .66
INSURANCE - 2.60%
CIGNA Corp. 150,000 14,025 .88
American General Corp. 176,700 10,779 .67
Allstate Corp. 400,000 8,900 .56
Aon Corp. 250,000 7,766 .49
AEROSPACE & MILITARY TECHNOLOGY - 2.48%
United Technologies Corp. 500,000 29,438 1.85
Raytheon Co., Class B 420,000 8,085
Raytheon Co., Class A 100,000 1,944 .63
BUSINESS SERVICES - 2.32%
Pitney Bowes Inc. 600,000 24,000 1.51
Rentokil Initial PLC (ADR) (United Kingdom) 500,000 11,969 .75
EarthWatch Inc. Series B, 7.00% convertible 289,991 1,000 .06
preferred (1) (2) (3) (4) (5)
BEVERAGES & TOBACCO - 2.28%
PepsiCo, Inc. 820,000 36,439 2.28
BROADCASTING & PUBLISHING - 1.62%
New York Times Co., Class A 300,000 11,850 .74
Time Warner Inc. 150,000 11,400 .72
Adelphia Communications Corp., Series B, 25,000 2,525 .16
13.00% exchangeable preferred 2009
INDUSTRIAL COMPONENTS - 1.45%
TRW Inc. 200,000 8,675 .54
Dana Corp. 400,000 8,475 .53
Genuine Parts Co. 300,000 6,000 .38
FOOD & HOUSEHOLD PRODUCTS - 1.32%
General Mills, Inc. 300,000 11,475 .72
Sara Lee Corp. 500,000 9,656 .60
CHEMICALS - 1.20%
Millennium Chemicals Inc. 600,000 10,200 .64
PPG Industries, Inc. 200,000 8,862 .56
LEISURE & TOURISM - 0.95%
Carnival Corp. 775,000 15,113 .95
Discovery Zone, Inc. (2) (5) 2,940 --
Discovery Zone, Inc., warrants, expire 2007 (2) (4) (5) 326 -- --
ENERGY EQUIPMENT - 0.94%
Schlumberger Ltd. (Netherlands Antilles) 200,000 14,925 .94
WIRELESS TELECOMMUNICATION SERVICES - 0.69%
Omnipoint Corp. 7.00% convertible preferred (1) 40,000 6,720 .42
Crown Castle International Corp. 12.75% 2,413 2,438 .15
exchangeable preferred 2010 (1) (2) (3)
Nextel Communications, Inc., Series D, 13.00% 1,775 1,899 .12
exchangeable preferred 2009 (2) (3)
McCaw International, Ltd., warrants, expire 2007 (1) (2) (4) 2,000 5 .00
MULTI-INDUSTRY - 0.50%
Dover Corp. 150,000 6,084 .38
Swire Pacific Capital Ltd. 8.84% cumulative 100,000 1,950 .12
guaranteed perpetual capital securities (Hong Kong) (1)
FOREST PRODUCTS & PAPER - 0.40%
Weyerhaeuser Co. 150,000 6,450 .40
UTILITIES: ELECTRIC & GAS - 0.33%
American Electric Power Co., Inc. (formerly 180,000 5,332 .33
Central and South West Corp.)
REAL ESTATE - 0.07%
CarrAmerica Realty Corp., Series B, 8.57% redeemable preferred 50,000 1,038 .07
RECREATION OTHER CONSUMER PRODUCTS - 0.00%
V2 Music Holdings PLC, warrants, expire 2008 1,250 -- --
(United Kingdom) (1) (2) (4)
MISCELLANEOUS - 0.26%
Other stocks in initial period of acquisition 4,219 .26
TOTAL STOCKS (cost: $788,200,000) 977,028 61.25
Principal
Amount
CONVERTIBLE DEBENTURES (000)
INDUSTRIALS & SERVICES - 0.40%
Sunglass Hut International, Inc. 5.25% 2003 $3,375 2,430 .15
USA Waste Services, Inc. 4.00% 2002 2,000 1,855 .12
Ingram Micro Inc. 0% 2018 (1) 3,000 1,125 .07
VersaTel Telecom International NV 4.00% 2005 (Netherlands) 1,000 907 .06
TOTAL CONVERTIBLE DEBENTURES (cost: $6,810,000) 6,317 .40
TOTAL EQUITY SECURITIES (cost: $795,010,000) 983,345 61.65
BONDS AND NOTES
DIVERSIFIED MEDIA & CABLE TELEVISION - 2.31%
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007 (6) 4,000 3,260
8.875% 2007 3,000 2,985 .39
Cox Communications, Inc. 7.875% 2009 5,000 4,999 .31
Liberty Media Corp. 7.875% 2029 (1) 3,500 3,348 .21
Telemundo Holdings, Inc., Series A, 0%/11.50% 2008 (6) 4,000 2,800 .18
NTL Inc.:
0%/11.50% 2009 (1) (6) 3,500 1,772
11.50% 2008 1,000 1,005 .17
Charter Communications Holdings, LLC 0%/9.92% 2011 (6) 4,000 2,300 .15
TCI Communications, Inc. 8.75% 2015 2,000 2,139 .13
British Sky Broadcasting Group PLC 8.20% 2009 2,250 2,114 .13
Clear Channel Communications, Inc. 7.875% 2005 2,000 2,006 .13
RBS Participacoes SA 11.00% 2007 2,000 1,652 .10
Gray Communications Systems, Inc. 10.625% 2006 1,600 1,596 .10
Cablevision Industries Corp. 8.125% 2009 1,250 1,215 .08
Young Broadcasting Inc. 10.125% 2005 1,250 1,212 .08
Cumulus Media Inc. 10.375% 2008 1,250 1,078 .07
ACME Television, LLC, Series B, 0%/10.875% 2004 (6) 1,000 955 .06
V2 Music Holdings PLC, units 0%/14.00% 2008 (1) (4) (6) 1,250 338 .02
FINANCIAL SERVICES - 1.69%
Associates Corp. of North America:
5.80% 2004 $3,000 $2,810
6.25% 2008 3,000 2,690 .34
Ford Motor Credit Co. 5.80% 2009 6,000 5,220 .33
Household Finance Corp. 7.875% 2007 3,000 2,988 .19
Capital One Financial Corp. 7.125% 2008 3,200 2,833 .18
GS Escrow Corp. 7.125% 2005 3,000 2,717 .17
BHP Finance Ltd. 6.75% 2013 2,680 2,392 .15
Providian National Bank 6.65% 2004 2,500 2,352 .15
Advanta Capital Trust I 8.99% 2026 3,000 1,860 .12
Capital One Capital I 7.491% 2027 (1) (7) 1,250 1,072 .06
BANKING & THRIFTS - 1.63%
MBNA Corp.:
Capital B, Series B, 7.191% 2027 (7) 3,000 2,521
Capital A, Series A, 8.278% 2026 2,010 1,645 .26
National Westminster Bank PLC 7.75% 2049 3,200 3,068 .19
Regional Diversified Funding Ltd. 9.25% 2030 3,000 2,887 .18
Imperial Capital Trust I, Series B, 9.98% 2026 2,950 2,389 .15
Capital One Bank 6.375% 2003 2,500 2,386 .15
Bankers Trust Corp. 6.70% 2007 2,080 1,958 .12
Banque Nationale de Paris 7.40% 2049 (7) 2,000 1,888 .12
Chevy Chase Bank, FSB 9.25% 2008 2,000 1,790 .11
BANK ONE CORP., Series A, 6.00% 2009 2,000 1,740 .11
Fleet Capital Trust 7.775% 2028 (7) 1,500 1,443 .09
Chase Capital III, Series C, 7.39% 2027 (7) 1,500 1,400 .09
Komercni Banka AS 9.00%/10.75% 2008 (1) (6) 1,000 955 .06
WIRELESS TELECOMMUNICATION SERVICES - 1.34%
Nextel Communications, Inc.: (6)
0%/9.95% 2008 3,000 2,213
0%/9.75% 2007 2,000 1,500
0%/10.65% 2007 1,500 1,177 .31
Clearnet Communications Inc.: (6)
0%/11.75% 2007 5,250 2,456
0%/10.40% 2008 4,000 1,635
0%/10.125% 2009 1,250 744 .30
McCaw International, Ltd. 0%/13.00% 2007 (6) 6,000 4,590 .29
Telesystem International Wireless Inc. 0%/13.25% 2007 (6) 2,700 1,944 .12
Omnipoint Corp. 11.625% 2006 1,500 1,605 .10
Vodafone AirTouch PLC 7.625% 2005 1,500 1,501 .09
Leap Wireless International, Inc.: (1)
0%/14.50% 2010 (6) 1,250 550
12.50% 2010 550 484 .07
SBA Communications Corp. 0%/12.00% 2008 (6) 1,000 700 .04
SpectraSite Holdings, Inc. 10.75% 2010 250 249 .02
TRANSPORTATION: AIRLINES - 1.04%
Continental Airlines, Inc.:
Series 1999-1, 10.22% 2014 2,037 2,121
Series 1998-3C, 7.25% 2005 1,500 1,424
Series 1997-4A, 6.90% 2018 1,427 1,322 .30
United Air Lines, Inc.:
Series 1996-A2, 7.87% 2019 2,500 2,213
Series 1995-A1, 9.02% 2012 (8) 1,321 1,287
9.00% 2003 500 493 .25
Delta Air Lines, Inc., pass-through trust: (8)
Series 1993-A2, 10.50% 2016 2,000 2,178
Series 1992-A2, 9.20% 2014 1,000 962 .20
Airplanes Pass Through Trust, Class 1-C, 8.15% 2019 (8) 2,799 2,520 .16
Jet Equipment Trust, Series 1995-B, Class B, 2,208 2,123 .13
7.83% 2015 (1) (8)
INSURANCE - 0.97%
Allstate Corp. 7.20% 2009 5,000 4,780 .30
ReliaStar Financial Corp.:
6.50% 2008 3,500 3,199
8.00% 2006 1,500 1,510 .30
AFLAC Inc. 6.50% 2009 5,000 4,534 .28
Conseco, Inc. 9.00% 2006 2,000 1,360 .09
MERCHANDISING - 0.80%
J.C. Penney Co., Inc.:
8.25% 2022 3,150 2,452
7.60% 2007 2,000 1,747
7.95% 2017 2,000 1,607
7.375% 2004 1,250 1,139 .43
Dillard's Inc. 6.43% 2004 3,000 2,648 .17
Dayton Hudson Corp. 8.50% 2022 2,500 2,524 .16
Venator Group, Inc., Series A, 7.00% 2002 750 675 .04
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED ) (8)- 0.79%
Starwood Asset Receivables Trust, Series 2000-1, 5,000 4,972 .31
Class D, 8.101% 2022 (1) (7)
DLJ Mortgage Acceptance Corp., Series 1996-CF2, 3,000 2,988 .18
Class A1, 7.29% 2021 (1)
Morgan Stanley Capital I, Inc., Series 1998-HF2, 3,000 2,828 .18
Class A-2, 6.48% 2030
L.A. Arena Funding, LLC 7.656% 2026 (1) 2,000 1,871 .12
ASSET-BACKED OBLIGATIONS (8) - 0.67%
Providian Master Trust:
Series 1999-2, Class A, 6.60% 2007 1,750 1,732
7.801% 2009 (1) (7) 1,500 1,500 .20
Sears Credit Account Master Trust II, Series 3,250 3,050 .19
1998-2, Class A, 5.25% 2008
HS. Receivables Corp., Series 1999-1, Class A, 8.13% 2004 (1) 2,344 2,312 .15
First Consumer Master Trust, Series 1999-A, 2,250 2,141 .13
Class A, 5.80% 2005 (1)
UTILITIES: ELECTRIC & GAS - 0.56%
Israel Electric Corp. Ltd.: (1)
7.25% 2006 2,500 2,423
7.70% 2018 1,750 1,580
7.75% 2027 1,500 1,319 .34
Edison Mission Energy 7.73% 2009 (1) 2,000 1,950 .12
Commonwealth Edison Co., Series 75, 9.875% 2020 1,500 1,604 .10
LEISURE & TOURISM - 0.52%
Mirage Resorts, Inc.:
6.625% 2005 2,000 1,826
6.75% 2008 1,500 1,342 .20
Royal Caribbean Cruises Ltd. 7.00% 2007 3,000 2,560 .16
Premier Parks Inc.:
9.25% 2006 1,000 947
0%/10.00% 2008 (6) 1,000 680 .10
Horseshoe Gaming Holdings Corp. 8.625% 2009 (1) 1,000 940 .06
BUSINESS SERVICES - 0.50%
Cendant Corp. 7.75% 2003 2,750 2,644 .16
WMX Technologies, Inc. 7.10% 2026 2,000 1,882 .12
KinderCare Learning Centers, Inc., Series B, 9.50% 2009 1,500 1,380 .09
Allied Waste North America, Inc. 10.00% 2009 (1) 1,300 1,098 .07
USA Waste Services, Inc. 6.50% 2002 1,000 928 .06
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.49%
COLT Telecom Group PLC 0%/12.00% 2006 (6) 3,750 3,300 .20
CEI Citicorp Holdings SA 11.25% 2007 (1) 2,500 2,414 .15
GT Group Telecom Inc., units 0%/13.25% 2010 (6) 2,250 1,249 .08
Hyperion Telecommunications, Inc., 1,000 920 .06
Series B, 0%/13.00% 2003 (6)
FOREST PRODUCTS & PAPER - 0.49%
Fort James Corp. 6.625% 2004 2,500 2,404 .15
Container Corp. of America 9.75% 2003 2,000 1,990 .12
Scotia Pacific Co. LLC, Class A-2, 7.11% 2028 2,000 1,580 .10
Kappa Beheer BV 10.625% 2009 (1) 1,250 1,218 .08
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1,000 603 .04
FOOD & HOUSEHOLD PRODUCTS - 0.49%
Nabisco, Inc. 7.05% 2007 4,990 4,544 .29
Home Products International, Inc. 9.625% 2008 2,000 1,660 .10
Fage Dairy Industry SA 9.00% 2007 2,000 1,590 .10
HOME IMPROVEMENT - 0.40%
Money Store Residential Trust 1997-1, Class M-1, 5,000 4,890 .31
7.085% 2016 (8)
FIRSTPLUS Home Loan Owner Trust, Series 1997-1, 1,500 1,487 .09
Class A-6, 6.95% 2015 (8)
REAL ESTATE - 0.38%
SocGen Real Estate Co. LLC, Series A, 7.64% preferred 2049 (1) 5,700 5,217 .33
EOP Operating LP 7.25% 2018 1,000 866 .05
ENERGY & RELATED COMPANIES - 0.37%
OXYMAR 7.50% 2016 (1) 2,500 1,798 .11
Clark Oil & Refining Corp. 9.50% 2004 1,850 1,649 .10
Louis Dreyfus Natural Gas Corp. 9.25% 2004 1,500 1,504 .10
Cross Timbers Oil Co. 8.75% 2009 1,000 947 .06
INDUSTRIAL COMPONENTS - 0.32%
TRW Inc. 8.75% 2006 5,000 5,109 .32
ELECTRICAL & ELECTRONICS - 0.27%
Hyundai Semiconductor America, Inc. 8.625% 2007 (1) 2,400 2,007 .13
Fairchild Semiconductor Corp. 10.375% 2007 1,000 1,017 .06
SCG Holding Corp. 12.00% 2009 750 803 .05
Zilog, Inc. 9.50% 2005 500 432 .03
METALS: NONFERROUS - 0.15%
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 2,750 1,853 .11
Doe Run Resources Corp. 11.653% 2003 (7) 1,500 600 .04
AEROSPACE & MILITARY TECHNOLOGY - 0.13%
Lockheed Martin Corp. 8.20% 2009 2,000 2,024 .13
MANUFACTURING & MATERIALS - 0.10%
Owens-Illinois, Inc. 8.10% 2007 1,750 1,627 .10
TRANSPORTATION: SHIPPING - 0.08%
Eletson Holdings Inc. 9.25% 2003 1,375 1,299 .08
HEALTH & PERSONAL CARE - 0.00%
Integrated Health Services, Inc. Series A: (4) (5)
9.25% 2008 1,750 17
9.50% 2007 1,250 13 .00
FEDERAL AGENCY OBLIGATIONS: MORTGAGE
PASS-THROUGHS (8) - 4.35%
Government National Mortgage Assn.:
7.00% 2022-2029 17,614 17,126
8.00% 2020-2029 15,173 15,372
7.50% 2029 14,497 14,393
6.50% 2029 8,728 8,283
8.50% 2021-2029 2,259 2,319
10.00% 2019 461 489 3.63
Fannie Mae:
6.00% 2013 7,979 7,545
8.50% 2030 2,780 2,831
7.00% 2009 818 811
9.00% 2019 266 274 .72
FEDERAL AGENCY OBLIGATIONS: OTHER - 1.18%
Freddie Mac 6.875% 2005 10,000 9,937 .63
Fannie Mae 5.25% 2009 10,000 8,814 .55
U.S. TREASURY OBLIGATIONS - 11.32%
7.25% 2004-2016 50,000 53,694
6.50% 2002-2005 50,000 50,253
7.00% 2006 25,000 25,906
10.375% 2009-2012 16,000 19,504
3.756% 2002 10,000 10,618
8.75% 2000-2008 8,000 8,329
6.625% 2007 8,000 8,167
11.875% 2003 2,500 2,909
11.75% 2010 500 603
10.75% 2003 500 555 11.32
TOTAL BONDS AND NOTES (cost: $557,307,000) 531,804 33.34
SHORT TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 3.95%
Preferred Receivables Funding Corp. 6.59% due 7/21/00 (1) 10,000 9,962 .62
AIG Funding, Inc. 6.52% due 8/1/00 9,900 9,843 .62
Park Avenue Receivables Corp. 6.70%-6.85% due 7/7-7/11/00 (1) 8,869 8,854 .56
BellSouth Capital Funding Corp. 6.50%-6.60% 7,200 7,188 .45
due 7/5-7/14/00 (1)
Wal-Mart Stores, Inc. 6.51% due 7/25/00 (1) 6,000 5,973 .37
PACCAR Financial Corp. 6.55% due 7/17/00 5,600 5,583 .35
Bell Atlantic Network Funding Corp. 6.53% due 7/14/00 5,000 4,987 .31
Anheuser-Busch Companies, Inc. 6.52% due 8/16/00 4,400 4,362 .27
Pfizer Inc 6.49% due 7/14/00 3,500 3,491 .22
General Electric Capital Corp. 6.95% due 7/3/00 2,800 2,798 .18
FEDERAL AGENCY DISCOUNT NOTES - 0.58%
Fannie Mae 6.30% due 7/27/00 9,340 9,295 .58
TOTAL SHORT-TERM SECURITIES (cost: $72,338,000) 72,336 4.53
TOTAL INVESTMENT SECURITIES (cost:$1,424,655,000) 1,587,485 99.52
Excess of cash and receivables over payables 7,684 .48
NET ASSETS $1,595,169 100.00%
1 Purchased in a private placement transaction;
resale to the public may require registration or sale
only to qualified institutional buyers.
2 Non-income-producing security.
3 Payment in kind. The issuer has the option of paying
additional securities in lieu of cash.
4 Valued under procedures established by the
Board of Trustees.
5 Company not making interest payments; bankruptcy
proceeding pending.
6 Step bond; coupon rate will increase at a later date.
7 Coupon rate changes periodically.
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.
ADR = American Depositary Receipts
See Notes to Financial Statements
Equity-type securities appearing in the portfolio
since December 31, 1999
Adaptec
AT&T
Bristol-Myers Squibb
Fannie Mae
HSBC Capital Funding
Sara Lee
Time Warner Inc.
TRW Inc.
U S WEST, Inc.
VersaTel Telecom International
Equity-type securities eliminated from the portfolio
since December 31, 1999
Advanced Micro Devices
Atlantic Richfield
Bell Atlantic
Boeing
Conecel Holdings
Conoco
Deere
Eli Lilly
ESAT Telecom Group
Gateway
Iridium
KeyCorp
Millipore
Murphy Oil
SmithKline Beecham
Sonoco Products
Transocean Offshore
Ultramar Diamond Shamrock
UST
Washington Mutual Savings Bank
</TABLE>
<TABLE>
American Funds Insurance Series Bond Fund
Investment Portfolio, June 30, 2000
<S> <C> <C> <C>
June 30, 2000
Corporate Bonds 57.89%
U.S. Government Bonds 16.22%
Equity Securities 5.69%
Non-U.S. Government Bonds 3.29%
Cash & Equivalents 16.91%
Principal Market Percent
Amount Value of Net
Bonds & Notes (000) (000) Assets
WIRELESS TELECOMMUNICATIONS SERVICES - 7.85%
Nextel Communications, Inc.:
0%/9.95% 2008 (1) 2,625 1,936 2.87%
0%/9.75% 2007 (1) 2,475 1,856
0%/10.65% 2007 (1) 1,275 1,001
12.00% 2008 500 540
McCaw International, Ltd.
0%/13.00% 2007 (1) 2,125 1,626
Nextel International, Inc. 0%/12.125% 2008 (1) 1,000 655
Omnipoint Corp.:
11.625% 2006 1,500 1,605 1.20
11.50% 2009 (2) 1,000 1,090
VoiceStream Wireless Corp. 10.375% 2009 500 518
Clearnet Communications Inc.: (1)
0%/11.75% 2007 C$2,658 1,243 1.04
0%/10.40% 2008 3,000 1,226
0%/10.125% 2009 $500 297
Crown Castle International Corp.:
0%/10.625% 2007 (1) 1,000 730 .70
0%/11.25% 2011 (1) 1,000 620
10.75% 2011 500 505
Leap Wireless International, Inc. 0%/14.50% 2010 (1,2) 4,000 1,760 .66
SpectraSite Holdings, Inc.:
0%/11.25% 2009 (1) 1,125 652 .45
0%/12.00% 2008 (1) 500 330
10.75% 2010 (2) 200 199
Dobson Communications Corp. 10.875% 2010 (2) 1,000 1,003 .38
PanAmSat Corp. 6.125% 2005 1,000 891 .34
PageMart Wireless, Inc. 0%/11.25% 2008 (1) 750 300 .11
Dobson/Sygnet Communications Co. 12.25% 2008 250 266 .10
BANKING - 6.91%
Advanta Corp.:
Series B, 7.00% 2001 2,265 2,115 1.57
Series D, 6.98% 2002 1,000 877
Series D, 6.925% 2002 1,000 876
Advanta Capital Trust I, Series B, 8.99% 2026 500 310
Capital One Financial Corp. 7.125% 2008 1,000 885 .89
Capital One Bank:
8.25% 2005 800 796
6.375% 2003 500 477
Capital One Capital I 7.491% 2027 (2,3) 250 214
SocGen Real Estate Co. LLC, Series A, 7.64% (undated)(2,3) 2,250 2,059 .78
J.P. Morgan & Co. Inc., Series A, 6.538% 2012 (4) 2,000 1,693 .64
HSBC Capital Funding 9.547% (undated)(2,3) 1,500 1,562 .59
MBNA Corp., MBNA Capital A, Series A, 8.278% 2026 850 696 .43
MBNA Corp., MBNA 6.75% 2008 500 453
Sakura Capital Funding 7.778% (undated) (2,3) 1,000 963 .36
Washington Mutual Finance 8.25% 2005 800 807 .30
National Westminster Bank PLC:
7.75% (undated) (3) 500 479 .29
9.375% 2003 276 291
Abbey National PLC 6.70% (undated)(3) 645 575 .22
Chevy Chase Bank, FSB 9.25% 2008 500 448 .17
Imperial Capital Trust I, Imperial Bancorp 9.98% 2026 550 446 .17
Bank of Scotland 7.00% (undated)(2) 480 439 .16
Riggs Capital Trust II 8.875% 2027 500 413 .16
Komercni Finance BV 9.00%/10.75% 2008 (1,2) 250 239 .09
Bankers Trust New York Corp. 6.70% 2007 250 235 .09
BROADCASTING & PUBLISHING - 6.72%
Charter Communications Holdings, LLC:
0%/9.92% 2011 (1) 3,250 1,869 1.42
10.00% 2009 1,500 1,459
8.25% 2007 500 443
Fox/Liberty Networks, LLC, FLN Finance, Inc.;
0%/9.75% 2007 (1) 3,750 3,056 1.34
8.875% 2007 500 498
CBS Corp. 7.15% 2005 2,000 1,957 .74
Telemundo Holdings, Inc. 0%/11.50% 2008 (1) 1,500 1,050 .40
Chancellor Media Corp. of Los Angeles:
8.125% 2007 500 501 .38
Series B, 8.75% 2007 500 501
Liberty Media Corp. 7.875% 2009 1,000 957 .36
British Sky Broadcasting Group PLC 8.20% 2009 1,000 940 .35
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 (1) 650 616 .32
NTL Communications Corp., Series B, 10.00% 2007 250 237
Clear Channel Communications, Inc. 7.875% 2005 800 802 .30
Cablevision Industries Corp. 8.125% 2009 750 729 .27
American Media Operations, Inc. 10.25% 2009 750 727 .27
Time Warner Inc. 7.75% 2005 500 502 .19
Rogers Communications Inc. 8.875% 2007 250 245 .09
V2 Music Holdings PLC 0%/14.00% 2008 (1,2,5) PiXL575 235 .09
RBS Participacoes SA 11.00% 2007 (2) $250 207 .08
Hearst-Argyle Television, Inc. 7.00% 2018 175 148 .06
Globo Comunicacoes e Participacoes SA 10.50% 2006 (2) 120 103 .04
TVN Entertainment Corp. 14.00% 2008 300 60 .02
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED)(6) - 5.00%
Merrill Lynch Mortgage Investors, Inc.:
Series 1995-C3, Class A-3, 7.067% 2025 (3) 2,800 2,754 1.61
Series 1999-C1, Class A-2, 7.56% 2009 (3) 1,500 1,506
GS Mortgage Securities Corp. II, mortgage
pass-through certificates:
Series 1998-C1, Class E, 7.45% 2030 (3) 1,250 1,101 .75
Series 1998-C1, Class D, 7.45% 2030 (3) 1,000 914
Nomura Asset Securities Corp., Series 1998-D6, 1,668 1,610 .61
Class A-A1, 6.28% 2030 (3)
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 2026 (2) 1,300 1,216 .46
CS First Boston Mortgage Securities Corp., 1,060 1,019 .38
Series 1998-C1, Class A-1A, 6.26% 2040
Morgan Stanley Capital I, Inc., Series 1998-HF2, 1,000 943 .36
Class A-2, 6.48% 2030
Norwest Asset Securities Corp., Series 1998-31, 833 793 .30
Class A-1, 6.25% 2014
Structured Asset Securities Corp., Series 1998-RF2, 610 622 .23
Class A, 8.54% 2027 (2,3)
DLJ Mortgage Acceptance Corp., Series 1995-CF2, 600 593 .22
Class A1B, 6.85% 2027 (2)
GMAC Commerical Mortgage Securities, Inc., 208 208 .08
Series 1997-C1, Class A1, 6.83% 2003
LEISURE & TOURISM - 3.73%
Mirage Resorts, Inc.:
6.625% 2005 2,000 1,826 .95
6.75% 2008 250 224
MGM Grand, Inc. 6.95% 2005 500 466
Joseph E. Seagram & Sons, Inc. 6.625% 2005 2,000 1,875 .71
Horseshoe Gaming Holding Corp. 8.625% 2009 1,500 1,410 .53
Premier Parks Inc.:
9.75% 2007 1,000 963 .42
0%/10.00% 2008 (1) 250 170
Florida Panthers Holdings, Inc. 9.875% 2009 1,000 940 .35
Royal Caribbean Cruises Ltd.:
7.00% 2007 675 576 .27
6.75% 2008 175 146
Boyd Gaming Corp. 9.50% 2007 500 480 .18
William Hill Finance PLC 10.625% 2008 P250 396 .15
International Game Technology 8.375% 2009 $250 236 .09
Carmike Cinemas, Inc., Series B, 9.375% 2009 375 202 .08
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.98%
COLT Telecom Group PLC:
8.875% 2007 DM1,250 610 .48
7.625% 2008 1,000 449
0%/12.00% 2006 (1) $250 220
GT Group Telecom Inc., units 0%/13.25% 2010 (1,2) 2,000 1,110 .42
NEXTLINK Communications, Inc.:
0%/12.25% 2009 (1) 1,000 620 .41
9.625% 2007 500 470
MGC Communications, Inc. 13.00% 2010 (2) 1,000 930 .35
Maxcom Telecomunicaciones, SA de CV 13.75% 2007 (2) 1,000 885 .33
VersaTel Telecom International NV:
11.25% 2010 (2) 500 454 .26
11.875% 2009 250 245
Level 3 Communications, Inc. 11.25% 2010 (2) 750 681 .26
Qwest Communications International Inc. 0%/8.29% 2008 (1) 750 581 .22
Allegiance Telecom, Inc. 0%/11.75% 2008 (1) 750 551 .21
Viatel, Inc. 11.25% 2008 125 93 .04
TRANSPORTATION - 2.41%
Continental Airlines, Inc., pass-through certificates: (6)
Series 1998-3, Class C-2, 7.25% 2005 500 474 .92
Series 1999-1, Class B, 6.795% 2020 499 455
Series 1998-3, Class A-2, 6.32% 2008 500 454
Series 1998-1, Class A, 6.648% 2019 481 435
Series 1997-1, Class C, 7.42% 2007 444 433
1Series 1996, Class C, 9.50% 2015 222 225
Airplanes Pass Through Trust, pass-through 1,633 1,470 .55
certificates, Series 1, Class C, 8.15% 2019 (6)
Atlas Air, Inc. pass-through certificates, Series 1,450 1,335 .50
1998-1, Class A, 7.38% 2018 (6)
Jet Equipment Trust: (2,6)
Series 1995-D, 11.44% 2014 300 332 .24
Series 1994-A, Class B1, 11.79% 2013 250 283
United Air Lines, Inc. 10.67% 2004 (6) 500 509 .20
INSURANCE - 2.34%
Allstate Corp.:
7.20% 2009 1,750 1,673 .86
7.875% 2005 600 600
Lindsey Morden Group Inc., Series B, 7.00% 2008 (2) C$2,750 1,547 .58
Conseco, Inc. 8.70% 2026 $1,750 752 .28
Royal & Sun Alliance Insurance Group PLC 8.95% 2029 (2) 750 743 .28
Jefferson-Pilot Corp. 8.14% 2046 (2) 700 632 .24
ReliaStar Financial Corp. 8.00% 2006 250 252 .10
FOREST PRODUCTS & PAPER - 2.15%
Pindo Deli Finance Mauritius Ltd.:
10.25% 2002 $1,500 1,084 .58
10.75% 2007 750 452
Container Corp. of America 9.75% 2003 1,000 995 .37
International Paper Co. 8.00% 2003 (2) 800 803 .30
Scotia Pacific Co. LLC, Series B, Class A-2, 7.11% 2028 1,000 790 .30
Kappa Beheer BV 10.625% 2009 P750 730 .28
Fort James Corp. 6.625% 2004 $500 481 .18
Packaging Corp. of America 9.625% 2009 375 371 .14
FINANCIAL SERVICES - 2.11%
Household Finance Corp.:
8.00% 2005 500 504 .39
5.875% 2009 350 304
6.40% 2008 250 227
AT&T Capital Corp. 6.875% 2001 1,000 997 .37
GS Escrow Corp.:
7.00% 2003 500 457 .34
7.125% 2005 500 453
Ford Motor Credit Co. 5.80% 2009 1,000 870 .33
AB Spintab 7.50% (undated) (2,3) 750 713 .27
Providian Financial Corp. 9.525% 2027 (2) 750 588 .22
BHP Finance Ltd. 6.69% 2006 300 284 .11
BankUnited Capital Trust, BankUnited Financial 250 213 .08
Corp. 10.25% 2026
BUSINESS SERVICES - 2.08%
Waste Management, Inc.:
6.625% 2002 925 887 .85
7.10% 2026 500 471
6.375% 2003 500 463
6.875% 2009 500 438
Allied Waste North America, Inc. 10.00% 2009 (2) 2,125 1,796 .68
Cendant Corp. 7.75% 2003 1,000 961 .36
Exodus Communications, Inc. 11.625% 2010 (2) 500 502 .19
ENERGY SOURCES - 1.86%
Petrozuata Finance, Inc.:
Series B, 8.22% 2017 (2) 1,500 1,159 .76
Series A, 7.63% 2009 (2) 1,000 842
Phillips Petroleum Co. 8.50% 2005 1,000 1,033 .39
PDVSA Finance Ltd.:
7.40% 2016 485 380 .23
9.75% 2010 250 239
Louis Dreyfus Natural Gas Corp. 9.25% 2004 500 501 .19
Norcen Energy Resources Ltd. 7.375% 2006 500 489 .18
Clark USA, Inc. 10.875% 2005 500 289 .11
MULTI-INDUSTRY - 1.68%
Tekni-Plex, Inc. 12.75% 2010 (2) 1,500 1,504 .57
American Standard Inc. 8.25% 2009 (2) 1,000 965 .36
Graham Packaging Co.:
0%/10.75% 2009 (1) 750 443 .33
8.75% 2008 500 435
Reliance Industries Ltd.:
10.25% 2097 (2) 500 432 .24
Series B, 10.25% 2097 250 216
Wharf International Finance Ltd., Series A, 7.625% 2007 515 471 .18
MERCHANDISING - 1.58%
J.C. Penney Co., Inc.:
8.25% 2022 2,150 1,673 .94
7.125% 2023 600 425
7.65% 2016 500 393
Sears, Roebuck and Co. 6.25% 2009 1,000 881 .33
Dillard's, Inc.:
6.30% 2008 700 556 .31
6.43% 2004 300 265
UTILITIES: ELECTRIC & GAS - 1.25%
Israel Electric Corp. Ltd.: (2)
7.70% 2018 1,000 903 .79
7.75% 2027 620 545
8.25% 2009 400 403
7.75% 2009 250 243
Transener SA 9.25% 2008 (2) 900 796 .30
Commonwealth Edison Co. 9.875% 2020 400 428 .16
HEALTH CARE PROVIDERS & SERVICES - 1.14%
Columbia/HCA Healthcare Corp.:
6.91% 2005 2,000 1,815 1.04
8.85% 2007 500 481
7.15% 2004 500 465
Paracelsus Healthcare Corp. 10.00% 2006 (7) 1,000 240 .09
Integrated Health Services, Inc.: (5,7)
Series A, 9.25% 2008 2,000 20 .01
Series A, 9.50% 2007 750 8
ELECTRONIC COMPONENTS & INSTRUMENTS - 1.13%
Hyundai Semiconductor America, Inc. 8.625% 2007 (2) 1,750 1,463 .55
Flextronics International Ltd. 9.875% 2010 (2) 1,000 1,010 .38
Advanced Micro Devices, Inc. 11.00% 2003 512 525 .20
ASSET-BACKED OBLIGATION - 0.72%
ComEd Transitional Funding Trust, transitional
funding trust note,
Series 1998, Class A-4, 5.39% 2005 2,000 1,921 .72
INDUSTRIAL COMPONENTS - 0.71%
Federal-Mogul Corp.:
7.375% 2006 1,750 1,199 .71
7.75% 2006 1,000 685
BREED Technologies, Inc. 9.25% 2008 (5,7) 1,000 10 .00
HOME IMPROVEMENT - 0.58%
Conseco Finance Home Loan Trust, Series 1999-G 1,250 1,051 .39
, Class B-2, 10.96% 2029
FIRSTPLUS Home Loan Owner Trust, Series 1997-1, 500 496 .19
Class A-6, 6.95% 2015
FOOD & HOUSEHOLD PRODUCTS - 0.45%
Gruma, SA de CV 7.625% 2007 1,000 856 .32
Fage Dairy Industry SA 9.00% 2007 250 199 .08
New World Pasta Co. 9.25% 2009 250 145 .05
RECREATION & OTHER CONSUMER PRODUCTS - 0.37%
Hasbro, Inc. 7.95% 2003 1,000 989 .37
ENERGY EQUIPMENT & SERVICES - 0.33%
McDermott Inc. 9.375% 2002 1,150 862 .33
MANUFACTURED HOUSING - 0.32%
Green Tree Financial Corp., pass-through certificates:
Series 1995-6, Class B2, 8.00% 2026 940 558 .32
Series 1996-5, Class B-2, 8.45% 2027 492 300
CHEMICALS - 0.27%
Equistar Chemicals, LP 8.75% 2009 750 716 .27
APPLIANCES & HOUSEHOLD DURABLES - 0.19%
Salton/Maxim Housewares, Inc. 10.75% 2005 500 498 .19
MISCELLANEOUS MATERIALS & COMMODITIES - 0.18%
Printpack, Inc. 10.625% 2006 500 480 .18
IT CONSULTING & SERVICES - 0.18%
Ceridian Corp. 7.25% 2004 500 479 .18
HOME EQUITY - 0.17%
Conseco Finance Securitizations Corp., certificates
for home equity loans,
Series 2000-A, Class BV-2, 9.451% 2031 (4) 500 446 .17
METALS: NONFERROUS - 0.15%
Freeport-McMoRan Copper & Gold Inc.:
7.20% 2026 500 337 .15
7.50% 2006 100 66
ELECTRICAL & ELECTRONICS - 0.15%
Zilog, Inc. 9.50% 2005 450 389 .15
MACHINERY & ENGINEERING - 0.11%
Deere & Co. 8.95% 2019 250 260 .10
Safety-Kleen Corp. 9.25% 2009 (7) 1,000 28 .01
REAL ESTATE INVESTMENT TRUST - 0.09%
ProLogis Trust 7.05% 2006 250 236 .09
NON-U.S. GOVERNMENT OBLIGATIONS - 3.29%
Deutschland Republic:
5.25% 2008 EUR 1,500 1,435 .92
8.00% 2002 1,000 1,009
Argentina (Republic of):
Series C, 0% 2001 $1,250 1,106 .60
11.00% 2005 500 475
Panama (Republic of) 8.875% 2027 1,750 1,479 .56
Ontario (Province of) 5.50% 2008 1,000 897 .34
United Mexican States Government, Eurobonds, 750 859 .32
Global 11.375% 2016
Canadian Government 4.599% 2026 (4) C$1,000 790 .30
Philippines (Republic of) 9.875% 2019 $500 410 .15
Brazil (Federal Republic of), 14.50% 2009 250 267 .10
Federal Agency Obligations: Mortgage
Pass-Throughs (6) - 7.66%
Government National Mortgage Assn.:
8.00% 2023-2030 4,831 4,897 6.44
7.00% 2023-2029 4,392 4,269
6.00% 2029 3,389 3,121
7.50% 2023-2030 3,196 3,176
6.50% 2025-2028 1,058 1,004
10.00% 2019 307 326
9.50% 2021 296 311
Fannie Mae:
7.00% 2026 1,168 1,134 1.05
6.00% 2013 830 785
10.00% 2018-2025 399 422
9.00% 2021 280 289
6.50% 2026 177 167
Freddie Mac 7.00% 2015 466 457 .17
FEDERAL AGENCY OBLIGATIONS: OTHER - 0.75%
Fannie Mae 5.25% 2009 2,250 1,983 .75
U.S. TREASURY OBLIGATIONS - 7.81%
8.875% 2017 8,375 10,676 7.81
6.25% 2003 5,600 5,580
10.375% 2009-2012 1,500 1,803
7.25% 2004 1,500 1,551
17.50% 2016 1,000 1,129
TOTAL BONDS & NOTES (cost: $223,067,000) 205,514 77.40
Principal
Amount (000) Market Percent
or Number Value of Net
Stocks ( common and preferred) of Shares (000) Assets
BANKING - 2.22%
BNP U.S. Funding LLC, Series A, 7.738% $1,550 1,442 .54
noncumulative preferred (France)(2)
SB Treasury Co. LLC, Series A, 9.40% noncumulative $1,500 1,442 .54
preferred (Japan)(2)
Fuji JGB Investment LLC, Series A, 9.87% noncumulative $1,100 1,062 .40
preferred (Japan) (2)
First Republic Capital Corp. 10.50% preferred (2) 750 664 .25
Tokai Preferred Capital Co. LLC, Series A, 9.98%/11.09% $500 486 .18
noncumulative preferred (Japan) (1,2)
NB Capital Corp. 8.35% exchangeable depositary 20,000 460 .17
IBJ Preferred Capital Co. LLC, Series A, 8.79% $400 363 .14
noncumulative preferred (Japan) (2)
WIRELESS TELECOMMUNICATION SERVICES - 0.60%
Crown Castle International Corp. 12.75% senior 1,206 1,218 .46
exchangeable preferred 2010 (8,9)
Nextel Communications, Inc., Series D, 13.00% 355 380 .14
exchangeable preferred, redeemable 2009 (8,9)
McCaw International, Ltd., warrants, expire 2007 (2,5,9) 2,000 5 -
Globalstar Telecommunications Ltd., warrants, 250 - -
expire 2004 (9)
MULTI-INDUSTRY - 0.48%
Swire Pacific Capital Ltd.
8.84% cumulative guaranteed perpetual 65,000 1,268 .48
capital securities (Hong Kong) (2)
REAL ESTATE - 0.47%
ProLogis Trust, Series D, 7.92% preferred 40,000 810 .31
CarrAmerica Realty Corp., Series B, 8.57% cumulative 20,000 415 .16
redeemable preferred
BROADCASTING & PUBLISHING - 0.20%
Adelphia Communications Corp.,
Series B, 13.00% exchangeable preferred 2009 (9) 5,000 505 .19
NTL Inc., warrants, expire 2008 (2,5,9) 238 16 .01
TVN Entertainment Corp., warrants, expire 2008 (2,5,9) 300 - -
BUSINESS SERVICES - 0.09%
Earthwatch Inc., Series B, 7.00% convertible 72 250 .09
preferred 2009 (2,5,8,9)
RECREATION & OTHER CONSUMER PRODUCTS - 0.00%
V2 Music Holdings PLC, warrants, expire 2000 575 - -
(United Kingdom) (2,5,9)
TOTAL STOCKS (cost: $10,605,000) 10,786 4.06
Principal Market Percent
Amount Value of Net
Convertible Debentures (000) (000) Assets
BUSINESS SERVICES - 0.49%
Waste Management, Inc. 4.00% 2002 1,400 1,299 .49
WHOLESALE & INTERNATIONAL TRADE - 0.28%
Ingram Micro Inc. 0% 2018 2,000 750 .28
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.28%
Bell Atlantic Financial Services, Inc. 5.75% 2003 (2) 750 747 .28
HEALTH & PERSONAL CARE - 0.26%
Omnicare, Inc. 5.00% 2007 1,000 680 .26
MERCHANDISING - 0.16%
Sunglass Hut International Ltd., 5.25% 2003 600 432 .16
ELECTRONIC COMPONENTS - 0.16%
Adaptec, Inc. 4.75% convertible subordinated notes 2004 500 425 .16
TOTAL CONVERTIBLE DEBENTURES (cost: $4,397,000) 4,333 1.63
TOTAL EQUITY SECURITIES (cost: $15,002,000) 15,119 5.69
Shares/
Principal Market Percent
Amount Value of Net
Short Term Securities (000) (000) Assets
CORPORATE SHORT-TERM NOTES - 15.59%
Emerson Electric Co. 6.55% due 7/10/2000 (2) 5,600 5,590 2.11
Bestfoods 6.50% due 7/18/2000 (2) 4,900 4,884 1.84
Associates First Capital Corp. 6.85% due 7/3/2000 4,430 4,427 1.67
BellSouth Capital Funding Corp. 6.60% due 7/14/2000 (2) 4,000 3,990 1.50
Park Avenue Receivables Corp. 6.55% due 7/14/2000 (2) 4,000 3,990 1.50
H.J. Heinz Co. 6.51% due 7/28/2000 4,000 3,980 1.50
Motorola Credit Corp. 6.50% due 7/31/2000 4,000 3,977 1.50
Preferred Receivables Funding Corp. 6.55% due 7/28/2000 (2) 3,600 3,582 1.35
Bell Atlantic Network Funding Corp. 6.50% due 7/24/2000 3,000 2,987 1.12
Coca-Cola Co. 6.50% due 7/28/2000 2,000 1,990 .75
PepsiCo, Inc. 6.50% due 7/27/2000 2,000 1,990 .75
TOTAL SHORT-TERM SECURITIES (cost: $41,387,000) 41,387 15.59
TOTAL INVESTMENT SECURITIES (cost: $279,456,000) 262,020 98.68
Excess of cash and receivables over payables 3,509 1.32
NET ASSETS $265,529 100.00
(1) Step bond; coupon rate will increase at a later date.
(2) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
(3) Coupon rate may change periodically.
(4) Index-linked bond whose principal amount moves
with a government retail price index.
(5) Valued under procedures established by the
Board of Trustees.
(6) 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.
(7) Company not making interest or dividend payments;
bankruptcy proceedings pending.
(8) Payment in kind. The issuer has the option of
paying additional securities in lieu of cash.
(9) Non-income-producing security.
ADR = American Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
American Variable Insurance Series High Yield Bond Fund
Investment Portfolio, June 30, 2000
Unaudited
June 30, 2000
<S> <C> <C> <C>
Corporate Bonds 77.50%
Stocks and Convertibles 13.63
Cash and Equivalents 7.29
Non-U.S. Government/Agency 1.58
Percent of
Largest Corporate Holdings Net Assets
June 30, 2000
NEXTEL Communications 4.67%
VoiceStream Wireless 4.66
Charter Communications Holdings 2.61
Crown Castle International 2.56
Container Corp. of America 2.56
Clearnet Communications 2.06
NTL 1.91
COLT Telecom Group 1.83
Fox/Liberty Networks 1.79
Chancellor Media Corp of Los Angeles 1.71
Principal Market Percent
Amount Value of Net
BONDS & NOTES (000) (000) Assets
WIRELESS TELECOMMUNICATION SERVICES - 17.82%
Omnipoint Corp. 11.625% 2006 (merged $12,700 $13,589 4.52
with VoiceStream Wireless Corp.)
VoiceStream Wireless Corp.:
10.375% 2009 8,726 9,031
0%/11.875% 2009 (1) 7,500 5,063
Clearnet Communications Inc.: (1)
0%/11.75% 2007 C$20,825 9,742 2.06
0%/10.40% 2008 7,000 2,861
Nextel Communications, Inc.: (1)
0%/10.65% 2007 $6,500 5,103 2.01
0%/9.95% 2008 6,750 4,978
0%/9.75% 2007 3,000 2,250
McCaw International, Ltd. (owned
by NEXTEL Communications, Inc.)
0%/13.00% 2007 (1) 7,000 5,355 1.52
Nextel International, Inc. 0%/12.125% 2008 (1) 6,000 3,930
SpectraSite Holdings, Inc.: (1)
0%/11.25% 2009 7,875 4,568 1.31
0%/12.00% 2008 5,250 3,465
Crown Castle International Corp.:
0%/11.25% 2011 (1) 6,000 3,720 1.27
0%/10.625% 2007 (1) 3,500 2,555
10.75% 2011 1,500 1,515
Leap Wireless International, Inc.: (2)
0%/14.50% 2010 (1) 11,250 4,950 1.18
12.50% 2010 2,625 2,310
PageMart Wireless, Inc. 0%/11.25% 2008 (1) 17,400 6,959 1.14
Comunicacion Celular SA 0%/14.125% 2005 (1) (2) 5,000 3,800 .62
Nextel Partners, Inc.:
0%/14.00% 2009 (1) 4,290 2,939 .56
11.00% 2010 (2) 500 495
Dobson/Sygnet Communications Co. 12.25% 2008 2,500 2,656 .43
PTC International Finance BV 0%/10.75% 2007 (1) 2,000 1,425 .23
Loral Orion Network Systems, Inc. 11.25% 2007 2,400 1,356 .22
Telesystem International Wireless Inc. 0%/13.25% 2007 (1) 1,700 1,224 .20
Teligent, Inc. 11.50% 2007 1,500 1,185 .19
Centennial Cellular Corp. 10.75% 2008 1,000 975 .16
SBA Communications Corp. 0%/12.00% 2008 (1) 750 525 .09
Teletrac Holdings, Inc.: (2) (3)
9.00% 2004 492 394 .07
12.00% 2004 30 24
Cellco Finance NV 15.00% 2005 250 269 .04
BROADCASTING & PUBLISHING - 16.46%
Charter Communications Holdings, LLC:
0%/9.92% 2011 (1) 20,000 11,500 2.61
8.25% 2007 2,500 2,212
10.00% 2009 2,000 1,945
Avalon Cable of Michigan LLC 0%/11.875% 2008 (1) 500 325
NTL Inc.: (1)
0%/10.75% 2008 P5250 4,853 1.89
0%/9.75% 2008 $3,250 2,031
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 (1) 5,000 4,737
Fox/Liberty Networks, LLC, FLN Finance, Inc.:
0%/9.75% 2007 (1) 8,085 6,589 1.79
8.875% 2007 4,410 4,388
Chancellor Media Corp. of Los Angeles:
Series B, 8.75% 2007 6,000 6,008 1.71
8.125% 2007 4,500 4,511
American Media Operations, Inc. 10.25% 2009 7,150 6,935 1.14
ACME Intermediate Holdings, LLC, 0%/12.00% 2005 (1) 8,911 6,148 1.00
Gray Communications Systems, Inc. 10.625% 2006 5,250 5,237 .86
Muzak Holdings LLC 0%/13.00% 2010 (1) 6,500 3,575 .58
Big City Radio, Inc. 0%/11.25% 2005 (1) 6,250 3,438 .56
Globo Comunicacoes e Participacoes Ltda:
10.50% 2006 (2) 2,750 2,368 .53
10.50% 2006 1,000 861
TransWestern Publishing Co. LLC 9.625% 2007 3,250 3,169 .52
Cablevision Industries Corp. 9.875% 2013 2,500 2,566 .42
Antenna TV SA 9.00% 2007 2,750 2,537 .41
FrontierVision 11.00% 2006 2,500 2,500 .41
V2 Music Holdings PLC: (1)(2)(3)
0%/14.00% 2008 6,900 1,863 .37
0%/14.00% 2008 P1000 409
Young Broadcasting Inc.:
10.125% 2005 $1,750 1,698 .35
9.00% 2006 500 468
STC Broadcasting, Inc. 11.00% 2007 2,000 1,960 .32
Telemundo Holdings, Inc., 0%/11.50% 2008 (1) 2,500 1,750 .29
Cumulus Media 10.375% 2008 2,000 1,725 .28
Multicanal Participacoes SA, Series B, 12.625% 2004 1,000 1,038 .17
RBS Participacoes SA 11.00% 2007 (2) 1,000 826 .13
TVN Entertainment Corp. 14.00% 2008 2,000 403 .07
Sun Media Corp. 9.50% 2007 325 312 .05
DIVERSIFIED TELECOMMUNICATION SERVICES - 8.45%
COLT Telecom Group PLC:
0%/12.00% 2006 (1) 11,250 9,900 1.83
8.875% 2007 DM 2,750 1,343
Viatel, Inc.:
0%/12.50% 2008 (1) $7,000 3,150 1.32
11.15% 2008 DM 6,000 2,446
11.25% 2008 $3,050 2,257
0%/12.40% 2008 (1) DM 1,000 259
Allegiance Telecom, Inc.:
0%/11.75% 2008 (1) $7,250 5,329 .98
12.875% 2008 625 677
NEXTLINK Communications, Inc.:
9.625% 2007 2,000 1,880 .72
0%/12.125% 2009 (1)(2) 2,750 1,595
9.00% 2008 1,000 920
US Xchange, LLC 15.00% 2008 (3) 4,625 4,311 .70
Versatel Telecom International NV:
11.25% 2010 (2) EUR 3,000 2,722 .60
11.875% 2009 1,000 936
GT Group Telecom Inc. units 0%/13.25% 2010(1) (2) $6,500 3,608 .59
MGC Communications Inc. 13.00% 2010 (2) 3,000 2,790 .46
Maxcom Telecomunicaciones, SA de CV 13.75% 2007 (2) 3,000 2,655 .43
Global TeleSystems Group, Inc. 9.875% 2005 3,600 2,556 .42
Hyperion Telecommunications, Inc., 1,500 1,380 .23
Series B, 0%/13.00% 2003 (1)
Level 3 Communications, Inc. 11.25% 2010 (2) EUR 750 680 .11
IMPSAT Corp. 12.375% 2008 $500 396 .06
LEISURE & TOURISM - 6.65%
Horseshoe Gaming Holding Corp., Series B, 8.625% 2009 8,000 7,520 1.23
Boyd Gaming Corp.:
9.25% 2003 4,000 3,970 .92
9.50% 2007 1,750 1,680
William Hill Finance 10.625% 2008 P3050 4,830 .79
Premier Parks Inc.:
9.75% 2007 $2,625 2,588 .70
0%/10.00% 2008 (1) 2,500 1,700
International Game Technology:
7.875% 2004 2,800 2,688 .51
8.375% 2009 500 472
Sun International Hotels Ltd., Sun
International North America, Inc.:
8.625% 2007 2,250 2,036 .45
9.00% 2007 750 698
Harrah's Operating Co., Inc. 7.875% 2005 2,275 2,138 .35
KSL Recreation Group, Inc. 10.25% 2007 2,000 1,910 .31
Six Flags Entertainment Corp. 8.875% 2006 2,000 1,905 .31
CKE Restaurants, Inc. 9.125% 2009 1,920 1,296 .21
Carmike Cinemas, Inc., Series B, 9.375% 2009 2,375 1,282 .21
AMF Bowling Worldwide, Inc.:
0%/12.25% 2006 (1) 3,251 650 .13
10.875% 2006 600 162
Station Casinos, Inc. 9.875% 2010 (2) 750 750 .12
Friendly Ice Cream Corp. 10.50% 2007 925 740 .12
Royal Caribbean Cruises Ltd.:
7.00% 2007 350 299 .09
6.75% 2008 300 250
Florida Panthers Holdings, Inc. 9.875% 2009 500 470 .08
Mirage Resorts, Inc. 6.75% 2008 500 447 .07
Eldorado Resorts LLC 10.50% 2006 300 299 .05
FOREST PRODUCTS & PAPER - 4.26%
Container Corp. of America:
9.75% 2003 12,500 12,438 2.56
Series A, 11.25% 2004 2,000 2,020
Series B, 10.75% 2002 1,250 1,250
Kappa Beheer BV 0%/12.50% 2009 (1) EUR 4,750 2,971 .49
Packaging Corp. of America, Series B, 9.625% 2009 $2,750 2,723 .44
Indah Kiat Finance Mauritius Ltd.:
11.875% 2002 2,300 1,880 .33
10.00% 2007 250 153
Advance Agro PCL 13.00% 2007 2,275 1,467 .24
Pindo Deli Finance Mauritius Ltd. 10.75% 2007 1,300 783 .13
Copamex Industrias, SA de CV, Series B, 11.375% 2004 420 403 .07
BUSINESS SERVICES - 3.35%
Allied Waste North America, Inc., Series B, 10.00% 2009 10,225 8,640 1.41
Waste Management, Inc.:
7.70% 2002 3,000 2,927 .78
7.10% 2026 1,500 1,412
6.375% 2003 500 463
EarthWatch Inc. 0%/12.50% 2005(1) (2) (3) 2,880 2,045 .33
Iron Mountain Inc.:
10.125% 2006 1,500 1,500 .30
8.75% 2009 350 322
Exodus Communications, Inc. 11.625% 2010 (2) 1,500 1,508 .25
Stericycle, Inc., Series B, 12.375% 2009 1,000 1,020 .17
KinderCare Learning Centers, Inc., Series B, 9.50% 2009 650 598 .10
Safety-Kleen Services, Inc. 9.25% 2008 (4) 1,750 70 .01
ENERGY SOURCES - 2.86%
Pogo Producing Co.:
8.75% 2007 2,500 2,375 .59
10.375% 2009 1,250 1,281
Cross Timbers Oil Co.:
Series B, 9.25% 2007 2,500 2,437 .55
8.75% 2009 1,000 948
Clark Refining & Marketing, Inc.:
8.625% 2008 1,750 1,418 .43
8.375% 2007 1,550 1,228
AES Corp. 9.50% 2009 2,000 1,960 .32
Clark Oil & Refining Corp. 9.50% 2004 2,125 1,894 .31
HS Resources, Inc. 9.25% 2006 1,500 1,470 .24
Petrozuata Finance, Inc.: (2)
Series B, 8.22% 2017 1,000 773 .24
Series A, 7.63% 2009 800 674
Clark USA Inc. 10.875% 2005 1,500 865 .14
Newfield Exploration Co., Series B, 7.45% 2007 250 229 .04
FOOD & HOUSEHOLD PRODUCTS - 2.80%
Fage Dairy Industry SA 9.00% 2007 10,500 8,347 1.36
Home Products International, Inc. 9.625% 2008 6,500 5,395 .88
Salton/Maxim Housewares, Inc. 10.75% 2005 3,125 3,109 .51
DGS International Finance Co. 10.00% 2007 (2) 1,000 283 .05
MULTI-INDUSTRY - 2.40%
Graham Packaging Co.:
8.75% 2008 5,000 4,350 1.34
0%/10.75% 2009 (1) 6,500 3,835
Tekni-Plex, Inc. 12.75% 2010 (2) 6,250 6,266 1.02
Reliance Industries Ltd. 10.50% 2046 (2) 250 226 .04
ELECTRONIC COMPONENTS & INSTRUMENTS - 2.35%
Fairchild Semiconductor Corp.:
10.125% 2007 2,300 2,317 .75
10.375% 2007 2,250 2,289
Flextronics International Ltd. 8.75% 2007 4,500 4,320 .70
Advanced Micro Devices, Inc. 11.00% 2003 3,250 3,331 .54
SCG Holding Corp. 12.0% 2009 1,250 1,338 .22
Micron Technology, Inc. 6.50% 2005 (2) 1,000 832 .14
BANKING & FINANCIAL SERVICES - 2.05%
Advanta Corp.:
Series D, 6.98% 2002 2,000 1,753 .81
Series D, 6.925% 2002 2,000 1,752
7.0925% 2001 (5) 1,000 949
7.50% 2000 500 499
GS Escrow Corp.:
7.125% 2005 3,500 3,170 .67
7.39125% 2003 (5) 1,000 952
Providian Financial Corp. 9.525% 2027 (2) 3,500 2,746 .45
Komercni Finance BV 9.00%/10.75% 2008 (1) (2) 750 716 .12
MERCHANDISING - 1.97%
J. C. Penney Co., Inc.:
7.375% 2004 2,000 1,822 .87
6.875% 2015 1,750 1,280
7.65% 2016 1,400 1,099
7.625% 2097 1,000 691
7.375% 2008 500 424
Boyds Collection, Ltd. Series B, 9.00% 2008 3,137 2,729 .45
Kmart Corp., Series K-2, 9.78% 2020 2,000 1,848 .30
DR Securitized Lease Trust, pass-through certificates,
Series 1994 K-2, 9.35% 2019 (6) 1,500 1,385 .22
Dillard's Inc:
6.30% 2008 700 555 .13
6.43% 2004 300 265
BEVERAGES & TOBACCO - 1.80%
Delta Beverage Group, Inc. 9.75% 2003 6,200 5,859 .96
Canandaigua Wine Co., Inc.:
Series C, 8.75% 2003 3,750 3,675 .84
8.75% 2003 1,500 1,474
MISCELLANEOUS MATERIALS & COMMODITIES - 1.18%
Printpack, Inc. 10.625% 2006 4,258 4,088 .67
Anchor Glass Container Corp. 11.25% 2005 4,000 3,120 .51
METALS: NONFERROUS - 0.73%
Kaiser Aluminum & Chemical Corp. 12.75% 2003 2,350 2,156 .35
Freeport-McMoRan Copper & Gold Inc. 7.20% 2026 2,400 1,617 .26
Doe Run Resources Corp., 11.25% 2005 1,750 700 .12
HEALTH CARE PROVIDERS & SERVICES - 0.67%
Columbia/HCA Healthcare Corp. 6.91% 2005 2,750 2,496 .41
Paracelsus Healthcare Corp. 10.00% 2006 (4) 5,000 1,200 .20
Integrated Health Services, Inc.: (3) (4)
Series A, 9.25% 2008 9,250 93 .03
Series A, 9.50% 2007 5,325 53
10.25% 2006 5,000 50
Sun Healthcare Group, Inc.: (3) (4)
9.375% 2008 (2) 8,000 80 .02
Series B, 9.50% 2007 2,925 29
Mariner Health Group, Inc. 9.50% 2006 (3) (4) 8,100 81 .01
ELECTRICAL AND ELECTRONICS - 0.52%
Zilog, Inc. 9.50% 2005 3,700 3,201 .52
TRANSPORTATION - 0.49%
Eletson Holdings Inc. 9.25% 2003 1,750 1,654 .27
USAir, Inc., pass-through trust, 1,500 1,335 .22
Series 1993-A3, 10.375% 2013 (6)
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED) (6) - 0.21%
Chase Commercial Mortgage Securities Corp., 1,522 1,311 .21
Series 1998-2, Class E, 6.39% 2030 (6)
TEXTILES & APPAREL - 0.20%
WestPoint Stevens Inc. 7.875% 2005 1,500 1,253 .20
ENERGY EQUIPMENT & SERVICES - 0.12%
McDermott Inc. 9.375% 2002 1,000 750 .12
REAL ESTATE INVESTMENT TRUST - 0.11%
FelCor Suites LP 7.375% 2004 750 681 .11
INDUSTRIAL COMPONENTS - 0.05%
Key Plastics Holdings, Inc. 10.25% 2007 (4) 3,000 270 .04
BREED Technologies, Inc. 9.25% 2008 (3) (4) 7,375 74 .01
Non - U.S. Governments & Governmental Authorities - 1.58%
United Mexican States Government Eurobonds:
Global, 11.375% 2016 2,250 2,576 .52
Global, 11.50% 2026 500 603
Panama (Republic of):
Interest Reduction Bond, 3.75% 2014 (2) (5) 3,000 2,400 .43
8.875% 2027 250 211
Argentina (Republic of):
11.75% 2009 830 774 .38
11.00% 2006 725 683
12.00% 2020 725 678
11.375% 2017 250 224
Brazil (Federal Republic of), 14.50% 2009 500 535 .09
Philippines (Republic of) 9.875% 2019 500 410 .07
Bulgaria (Republic of), Front-Loaded 445 329 .05
Interest Reduction Bond, 2.75% 2012
Turkey (Republic of) 12.375% 2009 250 266 .04
TOTAL BONDS & NOTES (cost: $579,261,000) 484,673 79.08
STOCKS (common and preferred)
Number of
Shares or
Principal Market
Amount Value Percent of
WIRELESS TELECOMMUNICATION SERVICES - 5.59% (000) (000) Net Assets
Nextel Communications, Inc.: (7) (8)
Series E, 11.125% exchangeable preferred, redeemable 2010 14,314 $13,884 2.66
Series D, 13.00% exchangeable preferred, redeemable 2009 2,275 2,434
Dobson Communications Corp.: (7) (8)
12.25% exchangeable preferred, redeemable 2008 4,954 4,979 1.49
12.25% senior exchangeable preferred, redeemable 2008 4,116 4,136
Crown Castle International Corp. 12.75% 7,845 7,923 1.29
preferred 2010 (7) (8)
Omnipoint Corp. 7.00% convertible preferred 4,000 672 .14
(merged with Voicestream Wireless Corp.)
VoiceStream Wireless Corp. (8) 1,453 169
Teletrac, Inc. (2) (3) (8) 316,366 47 .01
Teletrac Holdings, Inc. Class A, warrants, 116,490 12
expire 2004 (3) (8)
McCaw International, Ltd. (owned by
NEXTEL Communications, Inc.)
warrants, expire 2007 (2) (3) (8) 2,500 6 .00
Comunicacion Celular SA, Class B, 5,000 1 .00
warrants, expire 2003 (Colombia) (2) (3) (8)
BROADCASTING & PUBLISHING - 2.38%
Cumulus Media Inc. 13.75% preferred 2009 (7) 4,259 3,471 .57
Adelphia Communications Corp., Series B, 13.00% 2009 30,000 3,030 .49
ACME Communications, Inc. (8) 106,579 1,945 .32
Clear Channel Communications, Inc. (8) 25,506 1,913 .31
Price Communications Corp. (8) 78,238 1,843 .30
Citadel Broadcasting Co. 13.25% (7) 10,268 1,063 .17
Radio One, Inc. Class D (8) 34,000 750 .20
Radio One, Inc., Class A (8) 17,000 503
NTL Inc., warrants, expire 2008 1,425 98 .02
(United Kingdom - Incorporated in USA) (2) (3) (8)
TVN Entertainment Corp., warrants, expire 2008 (2) (3) (8) 2,000 - .00
BANKING & FINANCIAL SERVICES - 1.95%
Fuji JGB Investment LLC, Series A, 9.87% $8,250 7,966 1.30
noncumulative preferred (2)
Chevy Chase Preferred Capital Corp. 10.375% 38,200 1,948 .32
First Republic Capital Corp. 10.50% preferred (2) 2,000 1,770 .29
Wilshire Financial Services Group, Inc. 155,212 233 .04
BUSINESS SERVICES - 0.54%
Earthwatch Inc.:(2) (3) (7) (8)
Series B, 7.00% convertible preferred 2009 869,976 3,000 .54
Series C, 8.50% convertible preferred 2009 170,534 293
MULTI-INDUSTRY - 0.51%
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed
perpetual capital securities (Hong Kong) (2) 160,000 3,120 .51
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.32%
IXC Communications, Inc. (8) 1,644 1,628 .27
Viatel, Inc. (8) 11,371 325 .05
KMC Telecom Holdings Inc., warrants, expire 2008 (2) (8) 9,500 12 .00
INDUSTRIAL COMPONENTS - 0.09%
Federal-Mogul Corp. 7.00% convertible preferred 2027 25,000 550 .09
APPLIANCES & HOUSEHOLD DURABLES - 0.00%
Protection One Alarm Monitoring, Inc., 6,400 3 .00
warrants, expire 2005 (2) (3) (8)
RECREATION & OTHER CONSUMER PRODUCTS - 0.00%
V2 Music Holdings PLC, warrants, 7,900 - .00
expire 2008, (United Kingdom) (2) (3) (8)
TEXTILES & APPAREL - 0.00%
Tultex Corp., warrants, expire 2007 (3) (8) 203,005 - .00
MISCELLANEOUS - 0.56%
Other Stocks in initial period of acquisition 3,441 .56
TOTAL STOCKS (cost: $64,989,000) 73,168 11.94
CONVERTIBLE DEBENTURES
Principal Market
Amount Value Percent of
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.42% (000) (000) Net Assets
Versatel Telecom International NV 4.00% 2005 (2) $2,850 $2,586 .42
WHOLESALE & INTERNATIONAL TRADE - 0.36%
Ingram Micro Inc. 0% 2018 5,905 2,214 .36
ELECTRONIC COMPONENTS & INSTRUMENTS - 0.35%
Adaptec, Inc. 4.75% 2004 2,500 2,125 .35
MERCHANDISING - 0.25%
Sunglass Hut International, Inc. 5.25% 2003 2,125 1,530 .25
HEALTH CARE PROVIDERS & SERVICES - 0.17%
Omnicare, Inc. 5.00% 2007 (2) 1,500 1,021 .17
Integrated Health Services, Inc. 5.75% 2001 (3) (4) 3,500 - .00
WIRELESS TELECOMMUNICATION SERVICES - 0.14%
Piltel International Holding Corp. 1.75% 2006 1,875 881 .14
TOTAL CONVERTIBLE DEBENTURES (cost: $14,915,000) 10,357 1.69
TOTAL EQUITY SECURITIES (cost: $79,904,000) 83,525 13.63
---------- ----------
Principal Market Percent
Amount Value of Net
Short-Term Securities (000) (000) Assets
Corporate Short-Term Notes - 6.28%
General Motors Acceptance Corp. 6.56% due 7/14/00 $11,000 $10,972 1.79
Colgate-Palmolive Co. 6.50% due 7/17/00 (2) 9,000 8,972 1.46
Park Avenue Receivables Corp. 6.53%-6.75% due 7/6-7/7/00 (2) 8,210 8,200 1.34
Estee Lauder Companies Inc. 6.52%-6.60% due 7/27-7/31/00 (2) 6,700 6,664 1.09
General Electric Capital Corp. 6.95% due 7/3/00 3,700 3,698 .60
Total Short Term Securities (cost: $38,506,000) 38,506 6.28
Total Investment Securities (cost:$697,671,000) 606,704 98.99
Excess of cash and receivables over payables 6,158 1.01
NET ASSETS $612,862 100.00%
1-- Step bond; coupon rate will increase at a later date.
2-- Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
3-- Valued under procedures established
by the Board of Trustees.
4--Company not making interest payments,
bankruptcy proceedings pending.
5-- Coupon rate may change periodically.
6--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.
7-- Payment in kind. The issuer has the
option of paying additional securities in lieu of cash.
8-- Non-income-producing security.
</TABLE>
<TABLE>
U.S. Government Guaranteed/ AAA-Rated Securitites Fund
<S> <C> <C> <C>
INVESTMENT PORTFOLIO, June 30, 2000 (Unaudited)
Private Mortgage & Asset-Backed Securities 33.51%
Federal Agency Mortgage-Related Securities 33.06%
U.S. Treasury Obligations 17.72%
Other Federal Obligations 5.41%
Other Bonds 1.45%
Cash & Equivalents 8.85%
Principal Market Percent
Amount Value of Net
BONDS AND NOTES (000) (000) Assets
FEDERAL AGENCY OBLIGATIONS: MORTGAGE PASS-
THROUGHS (1) - 29.90%
Government National Mortgage Assn.:
8.00% 2023-2030 $39,996 $40,421
7.00% 2023-2029 16,644 16,187
7.50% 2022-2029 7,489 7,443
6.00% 2029 6,777 6,241
8.50% 2021-2023 4,269 4,383
9.50% 2019-2021 2,217 2,331
6.50% 2029 1,926 1,828
10.00% 2019 1,228 1,304
9.00% 2009-2016 588 614
10.50% 2019 59 64 19.44%
Fannie Mae:
6.50% 2013-2028 6,777 6,478
6.00% 2013-2029 4,353 4,059
7.00% 2026-2028 3,969 3,849
8.50% 2027-2030 3,778 3,848
7.50% 2039 3,711 3,626
8.00% 2024 3,473 3,506
13.00% 2015 1,631 1,852
12.00% 2015-2019 1,545 1,714
10.00% 2018 1,613 1,705
9.00% 2011-2025 1,007 1,037 7.62
Freddie Mac:
7.00% 2008-2015 2,797 2,754
6.00% 2014-2029 2,596 2,401
8.25% 2008-2009 1,900 1,920
8.50% 2018-2027 970 989
8.00% 2012 957 967
11.00% 2018 429 465
9.50% 2016 89 93
12.00% 2016 1 1 2.31
Gold 9.00% 2022-2028 2,155 2,219 0.53
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED) (1) - 20.95%
Morgan Stanley Capital I, Inc.:
Series 1998-HF2, Class A-2, 6.48% 2030 7,500 7,070
Series 1998-HF2, Class A-1, 6.01% 2030 3,571 3,403
Series 1999-FNV1, Class A-2, 6.53% 2031 3,000 2,820
Series 1998-WF2, Class A-1, 6.34% 2030 2,611 2,527
Series 1998-WF1, Class A-1, 6.25% 2030 1,856 1,797 4.24
GE Capital Mortgage Services, Inc., Series 8,000 7,350 1.77
1994-15, Class A-10, 6.00% 2009
Deutsche Mortgage & Asset Receiving Corp., 6,449 6,200 1.49
Series 1998-C1, Class A-1, 6.22% 2007
Ocwen Residential MBS Corp., Series 1998-R1, 8,005 6,084 1.46
Class AWC, 4.857% 2040 (2)(3)
Security National Mortgage Loan Trust, Class A-2:(2)
Series 1999-1, 8.353% 2030 5,000 4,864
Series 2000-1, 8.75% 2024 1,100 1,089 1.43
Merrill Lynch Mortgage Investors, Inc.:
Series 1998-C3, Class A-1, 5.65% 2030 3,128 2,953
Series 1995-C3, Class A-2, 6.827% 2025 (3) 1,500 1,480
Series 1995-C3, Class A-3, 7.067% 2025 (3) 1,500 1,475 1.42
Mortgage Capital Funding, Inc., Series 5,530 5,360 1.29
1998-MC1, Class A-1, 6.42% 2030
Structured Asset Securities Corp., Class A:(2) (3)
Series 1998-RF2, 8.542% 2027 2,577 2,624
Series 1998-RF1, 8.669% 2027 2,406 2,457 1.22
Chase Commercial Mortgage Securities Corp.:
Series 1998-2, Class A-2, 6.39% 2008 3,000 2,806
Series 1998-1, Class A-1, 6.34% 2030 1,378 1,336 1.00
Nomura Asset Securities Corp., Series 4,169 4,024 .97
1998-D6, Class A-A1, 6.28% 2030
J.P. Morgan Commercial Mortgage Finance Corp., 3,000 2,978 .71
Series 1995-C1, Class A-2, 7.44% 2010 (3)
CS First Boston Mortgage Securities Corp., 2,587 2,486 .60
Series 1998-C1, Class A-1A, 6.26% 2040
Nationsbanc Montgomery Funding Corp., 2,538 2,400 .58
Series 1998-5, Class A-1, 6.00% 2013
Commercial Mortgage Acceptance Corp., Class A-1:
Series 1998-C2, 5.80% 2015 1,256 1,197
Series 1998-C1, 6.23% 2007 762 735 .46
Freddie Mac Loan Receivables Trust, Series 1998-A, 2,000 1,852 .44
Class A-3, 6.69% 2020 (2)
First Nationwide Trust, Series 1999-2, 1,970 1,826 .44
Class 1PP-A-1, 6.50% 2029
LB Commericial Conduit Mortgage Trust, Series 1998-C1, 1,627 1,587 .38
Class A-1, 6.33% 2030
GMAC Commercial Mortgage Securities, Inc., 1,500 1,453 .35
Series 1997-C1, Class A-3, 6.869% 2007
DLJ Commercial Mortgage Corp., Series 1998-CF2, 1,250 1,154 .28
Class A-1B, 6.24% 2031
Norwest Asset Securities Corp., Series 1998-31, 1,082 1,031 .25
Class A-1, 6.25% 2014
Ryland Acceptance Corp., Series 88, Class E, 7.95% 2019 708 709 .17
U.S. TREASURY OBLIGATIONS - 17.72%
8.875% 2017-2019 32,110 40,948
10.375% 2009 10,750 12,310
5.25% 2029 6,125 5,436
7.875% 2021 3,500 4,165
7.125% 2023 3,425 3,807
5.50% 2009 2,900 2,775
8.75% 2017 1,400 1,763 17.12
Strip Principal 0% 2015-2027 8,080 2,482 0.60
ASSET BACKED OBLIGATIONS (1) - 12.56%
NPF, Inc., Class A:(2)
XII, Series 1999-2, 7.05% 2003 11,875 11,727
VI, Series 1999-1, 6.25% 2003 1,000 975 3.05
Green Tree Financial Corp.:
Series 1996-7, Class A-6, 7.65% 2027 3,000 2,907
Series 1996-10, Class A-5, 6.83% 2028 2,500 2,443
Series 1997-6, Class A-6, 6.90% 2029 2,500 2,430
Series 1999-2, Class A-2, 5.84% 2030 2,500 2,420
Series 1997-6, Class A-7, 7.14% 2029 2,500 2,402 3.03
Puerto Rico Public Financing Corp., Series 1991-1, 4,667 4,389 1.06
Class A, AMBAC Insured, 6.15% 2008
Chase Credit Card Master Trust, Series 1997-5, 4,000 3,901 .94
Class A, 6.194% 2005
Green Tree Recreational, Equipment & Consumer 3,000 2,944 .71
Trust, Series 1999-A, Class A-6, 6.84% 2010
Triad Auto Receivables Owner Trust, 3,000 2,934 .71
Series 1999-1, Class A-2, FSA Insured, 6.09% 2005
ComEd Transitional Funding Trust, Series 1998-1:
Class A-5, 5.44% 2007 1,600 1,502
Class A-7, 5.74% 2010 1,500 1,347 .68
PP&L Transition Bond Co. LLC, Series 1999-1, 2,750 2,727 .66
Class A-8, 7.15% 2009
Conseco Finance Home Equity Loan Trust, 2,000 1,990 .48
Series 2000-B, Class AF-6, 7.80% 2020
PECO Energy Transition Trust, Series 1999-A, 2,000 1,845 .44
Class A-7, 6.13% 2009
Citibank Credit Card Master Trust I, Series 1,800 1,693 .41
1998-9, Class A, 5.30% 2006
Illinois Power Special Purpose Trust, transitional
funding trust notes, Series 1998-1,
Class A-7, 5.65% 2010 1,835 1,631 .39
FEDERAL AGENCY OBLIGATIONS: OTHER - 5.41%
Fannie Mae:
6.00% 2008 8,100 7,554
6.625% 2009 4,200 4,058
6.25% 2029 1,450 1,304 3.11
Freddie Mac:
5.125% 2008 5,000 4,376
5.75% 2008 2,500 2,295 1.61
Tennessee Valley Authority, Series G, 5.375% 2008 3,250 2,887 .69
COLLATERALIZED MORTGAGE OBLIGATIONS
(FEDERAL AGENCIES) (1) - 3.16%
Freddie Mac:
Series 1567, Class A, 5.174% 2023 (3) 6,183 6,015
Series 1507, Class JZ, 7.00% 2023 656 608
Series 83-B, Class B-3, 12.50% 2013 173 185 1.64
Fannie Mae:
Series 1997-M6, Class ZA, 6.85% 2026 6,068 5,396
Series 1998-M6, Class A-2, 6.32% 2008 1,000 933 1.52
DEVELOPMENTAL AUTHORITIES - 1.21%
Inter-American Development Bank 8.875% 2009 4,510 5,036 1.21
NON-U.S. GOVERNMENTAL AUTHORITIES - 0.24%
KfW International Finance Inc. 7.625% 2004 1,000 1,018 .24
TOTAL BONDS & NOTES (cost: $387,782,000) 378,984 91.15
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 6.96%
Motiva Enterprises LLC 6.54% due 7/5/00 7,400 7,393 1.78
AT&T Corp. 6.56% due 7/10/00 7,000 6,987 1.68
Park Avenue Receivables Corp. 6.62% due 7/25/00 (2) 7,000 6,968 1.67
Baltimore Gas and Electric Co. 6.50% due 7/14/00 4,200 4,190 1.01
General Electric Capital Corp. 6.95% due 7/3/00 3,400 3,398 .82
FEDERAL AGENCY DISCOUNT NOTES - 1.62%
Fannie Mae 6.30% due 7/27/00 6,770 6,737 1.62
TOTAL SHORT-TERM SECURITIES (cost: $35,674,000) 35,673 8.58
TOTAL INVESTMENT SECURITIES (cost: $423,456,000) 414,657 99.73
Excess of cash and receivables over payables 1,122 .27
NET ASSETS $415,779 100.00%
1 Pass-through securities backed by a pool of
mortgages or other loans on which
principal payments are periodically made.
Therefore, the effective maturity 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>
Cash Management Fund
Investments in short-term securities
<S> <C> <C> <C>
INVESTMENT PORTFOLIO
SHORT-TERM SECURITIES June 30,
2000
Principal Market
Amount Value Percent of
CORPORATE SHORT-TERM NOTES - 73.27% (000) (000) Net Assets
Associates First Capital Corp. 6.85% due 7/3/00 $9,700 $9,694 3.45%
SBC Communications Inc. 6.55% due 8/17/00 (1) 9,700 9,615 3.42
Pfizer Inc 6.49% due 7/11/00 (1) 8,900 8,882 3.16
Duke Energy Corp. 6.51%-6.53% due 7/10-8/7/00 8,600 8,559 3.04
Corporate Asset Funding Co. Inc. 6.53% due 7/25/00 (1) 8,500 8,461 3.01
Coca-Cola Co. 6.52% due 7/13/00 8,000 7,981 2.84
Motiva Enterprises LLC 6.52% due 7/21/00 8,000 7,970 2.83
Golden Peanut Co. 6.53% due 8/3/00 7,500 7,454 2.65
Bestfoods 6.50% due 7/18/00 (1) 7,000 6,977 2.48
American Express Credit Corp. 6.51% due 7/26/00 7,000 6,967 2.48
Campbell Soup Co. 6.51% due 7/26/00 7,000 6,967 2.48
Gillette Co. 6.52% due 7/28/00 (1) 7,000 6,965 2.48
PepsiCo, Inc. 6.50% due 7/27/00 6,700 6,667 2.37
Alcoa Inc. 6.52%-6.57% due 7/20-7/26/00 6,600 6,573 2.34
H.J. Heinz Co. 6.53%-6.55% due 7/20-8/2/00 6,200 6,171 2.19
Minnesota Mining and Manufacturing Co. 6.55% due 7/13/00 6,000 5,986 2.13
AT&T Corp. 6.60% due 7/24/00 6,000 5,974 2.12
Gannett Co., Inc.:
!6.50% due 7/27/00 3,400 3,383 2.05
!6.50% due 7/6/00 (1) 2,400 2,397
Wal-Mart Stores, Inc. 6.51% due 7/25/00 (1) 5,700 5,674 2.02
BellSouth Telecommunications, Inc. 6.53% due 8/4/00 5,350 5,316 1.89
CIT Group, Inc. 6.57% due 8/9/00 5,100 5,063 1.80
Kellogg Co. 6.52% due 7/12/00 5,000 4,989 1.77
Estee Lauder Companies Inc. 6.54% due 7/28/00 (1) 5,000 4,975 1.77
Motorola Credit Corp. 6.51% due 7/31/00 5,000 4,972 1.77
Pharmacia Corp. 6.55% due 8/7/00 5,000 4,965 1.77
USAA Capital Corp. 6.52% due 8/3/00 4,480 4,452 1.58
Kimberly-Clark Corp. 6.53% due 7/17-8/10/00 (1) 4,400 4,372 1.55
Park Avenue Receivables Corp. 6.54% due 7/11/00 (1) 4,000 3,992 1.42
AIG Funding, Inc. 6.50% due 7/26/00 4,000 3,981 1.42
Household Finance Corp. 6.55% due 8/4/00 4,000 3,975 1.41
General Mills, Inc. 6.51% due 7/24/00 3,100 3,087 1.10
Sherwin-Williams Co. 6.55% due 7/10/00 (1) 3,000 2,995 1.06
Archer Daniels Midland Co. 6.56% due 7/19/00 3,000 2,990 1.06
Johnson & Johnson 6.51% due 7/31/00 (1) 2,964 2,947 1.05
Preferred Receivables Funding Corp. 2,200 2,190 0.78
6.55%-6.58% due 7/19-7/26/00 (1)
A.I. Credit Corp. 6.54% due 7/31/00 1,500 1,492 0.53
FEDERAL AGENCY DISCOUNT NOTES - 28.07%
Freddie Mac 6.38%-6.45% due 7/5-8/1/00 46,125 45,955 16.34
Federal Home Loan Banks 6.41%-6.42% due 7/14-8/11/00 24,296 24,166 8.59
Fannie Mae 6.45%-6.49% due 8/1-8/17/00 8,900 8,837 3.14
CERTIFICATES OF DEPOSIT - 1.78%
Wachovia Bank 6.59% due 7/21/00 5,000 5,000 1.78
TOTAL INVESTMENT SECURITIES (cost: $290,028,000) 290,028 103.12
Excess of payables over cash & receivables 8,782 3.12
NET ASSETS $281,246 100.00%
(1) Purchased in a private placement transaction;
resale to the public may require registration
or sale only to qualified institutional buyers.
See Notes to Financial Statements
</TABLE>
<TABLE>
American Funds Insurance Series
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
at June 30, 2000 (Unaudited)
(dollars in thousands, except per-share
data)
<S> <C> <C> <C>
Global Small
Growth Capitalization Growth
Fund Fund Fund
ASSETS:
Investment securities at market $977,072 $500,507 $10,915,849
Cash 8 63 94
Receivables for-
Sales of investments 269 253 831
Sales of fund's shares 2,215 320 3,697
Dividends and interest 553 291 2,438
980,117 501,434 10,922,909
LIABILITIES:
Payables for-
Purchases of investments 3,458 4,288 4,843
Repurchases of fund's shares - 871 3,290
Open forward currency
contracts - net - - -
Management services 517 324 3,172
Distribution fees - Class 2 113 42 362
Other expenses 47 48 322
4,135 5,573 11,989
NET ASSETS AT
June 30, 2000
(Total $27,889,939) $975,982 $495,861 $10,910,920
Investment securities at cost $762,336 $482,855 $6,367,045
Class 1 (unlimited shares authorized):
Net assets (Total $22,412,619 ) $413,552 $285,626 $9,076,108
Shares of beneficial interest
outstanding 19,075,887 16,334,124 111,829,468
Net asset value per share $21.68 $17.49 $81.16
Class 2 (unlimited shares authorized):
Net assets (Total $5,477,320) $562,430 $210,235 $1,834,812
Shares of beneficial interest
outstanding 25,975,185 12,042,252 22,649,998
Net asset value per share $21.65 $17.46 $81.01
New Growth
International World Income
Fund Fund Fund
ASSETS:
Investment securities at market $4,464,073 $139,886 $7,658,804
Cash 107 1 98
Receivables for-
Sales of investments 628 327 79,799
Sales of fund's shares 4,892 396 1,740
Dividends and interest 5,804 465 10,818
4,475,504 141,075 7,751,259
LIABILITIES:
Payables for-
Purchases of investments 16,100 138 6,450
Repurchases of fund's shares 2,161 - 960
Open forward currency
contracts - net - - -
Management services 1,948 95 2,185
Distribution fees - Class 2 111 16 317
Other expenses 418 32 316
20,738 281 10,228
NET ASSETS AT
June 30, 2000
(Total $27,889,939) $4,454,766 $140,794 $7,741,031
Investment securities at cost $2,651,529 $137,688 $7,136,938
Class 1 (unlimited shares authorized):
Net assets (Total $22,412,619 ) $3,899,544 $57,801 $6,202,969
Shares of beneficial interest
outstanding 148,100,542 5,003,816 185,668,348
Net asset value per share $26.33 $11.55 $33.41
Class 2 (unlimited shares authorized):
Net assets (Total $5,477,320) $555,222 $82,993 $1,538,062
Shares of beneficial interest
outstanding 21,113,354 7,194,188 46,099,269
Net asset value per share $26.30 $11.54 $33.36
Asset High-Yield
Allocation Bond Bond
Fund Fund Fund
ASSETS:
Investment securities at market $1,587,485 $262,020 $606,704
Cash 34 7 6
Receivables for-
Sales of investments 3,661 652 1,206
Sales of fund's shares - 77 48
Dividends and interest 8,948 3,464 8,490
1,600,128 266,220 616,454
LIABILITIES:
Payables for-
Purchases of investments 2,792 500 2,247
Repurchases of fund's shares 1,279 13 879
Open forward currency
contracts - net 39 - 49
Management services 581 109 253
Distribution fees - Class 2 79 23 22
Other expenses 189 46 142
4,959 691 3,592
NET ASSETS AT
June 30, 2000
(Total $27,889,939) $1,595,169 $265,529 $612,862
Investment securities at cost $1,424,655 $279,456 $697,671
Class 1 (unlimited shares authorized):
Net assets (Total $22,412,619 ) $1,215,161 $151,999 $504,854
Shares of beneficial interest
outstanding 81,345,957 15,447,899 39,953,203
Net asset value per share $14.94 $9.84 $12.64
Class 2 (unlimited shares authorized):
Net assets (Total $5,477,320) $380,008 $113,530 $108,008
Shares of beneficial interest
outstanding 25,471,137 11,552,652 8,558,678
Net asset value per share $14.92 $9.83 $12.62
U.S. Government/
AAA-Rated Cash
Securities Management
Fund Fund
ASSETS:
Investment securities at market $414,657 $290,028
Cash 71 102
Receivables for-
Sales of investments 47 -
Sales of fund's shares 8 -
Dividends and interest 3,458 34
418,241 290,164
LIABILITIES:
Payables for-
Purchases of investments 2,200 -
Repurchases of fund's shares 50 8,789
Open forward currency
contracts - net - -
Management services 174 106
Distribution fees - Class 2 10 9
Other expenses 28 14
2,462 8,918
NET ASSETS AT
June 30, 2000
(Total $27,889,939) $415,779 $281,246
Investment securities at cost $423,456 $290,028
Class 1 (unlimited shares authorized):
Net assets (Total $22,412,619 ) $365,736 $239,269
Shares of beneficial interest
outstanding 33,565,259 21,180,022
Net asset value per share $10.90 $11.30
Class 2 (unlimited shares authorized):
Net assets (Total $5,477,320) $50,043 $41,977
Shares of beneficial interest
outstanding 4,598,264 3,720,510
Net asset value per share $10.88 $11.28
See Notes to Financial Statements
</TABLE>
<TABLE>
American Funds Insurance Series
FINANCIAL STATEMENTS
<S> <C> <C> <C>
Statement of Operations
for the six months ended June 30, 2000
(Unaudited)
(dollars in thousands)
Global
Global Small
Growth Capitalization Growth
Fund Fund Fund
INVESTMENT INCOME:
Income:
Dividends $ 2,803 $ 1,232 $ 15,076
Interest 4,090 2,108 22,956
6,893 3,340 38,032
Expenses:
Management services fee 2,932 1,824 18,519
Distribution fees - Class 2 619 219 1,866
Reports to shareholders 22 11 255
Registration statement and
prospectus 17 8 199
Postage, stationery and
supplies 9 5 104
Trustees' fees 5 3 61
Auditing and legal fees 2 1 22
Custodian fee 116 70 277
Taxes other than federal
income tax 10 4 117
Other expenses 6 8 37
3,738 2,153 21,457
Net investment income 3,155 1,187 16,575
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 54,277 45,015 1,251,334
Net change in unrealized appreciation
(depreciation) on investments (49,957) (60,688) 200,406
Net change in unrealized depreciation
on open forward currency contracts - - -
Net unrealized appreciation
(depreciation) (49,957) (60,688) 200,406
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 4,320 (15,673) 1,451,740
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 7,475 $(14,486) $1,468,315
New Growth-
International World Income
Fund Fund Fund
INVESTMENT INCOME:
Income:
Dividends $ 20,549 $ 635 $ 63,309
Interest 7,940 1,282 32,539
28,489 1,917 95,848
Expenses:
Management services fee 12,283 512 12,997
Distribution fees - Class 2 608 78 1,693
Reports to shareholders 122 3 179
Registration statement and
prospectus 95 3 152
Postage, stationery and
supplies 45 1 67
Trustees' fees 26 1 47
Auditing and legal fees 10 - 15
Custodian fee 921 26 77
Taxes other than federal
income tax 56 5 93
Other expenses 31 - 35
14,197 629 15,355
Net investment income 14,292 1,288 80,493
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 385,403 3,866 707,915
Net change in unrealized appreciation
(depreciation) on investments (398,011) (8,970) (591,506)
Net change in unrealized depreciation
on open forward currency contracts - - -
Net unrealized appreciation
(depreciation) (398,011) (8,970) (591,506)
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments (12,608) (5,104) 116,409
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,684 $(3,816) $196,902
Asset High-Yield
Allocation Bond Bond
Fund Fund Fund
INVESTMENT INCOME:
Income:
Dividends $10,078 $ 154 $ 580
Interest 23,851 10,333 31,078
33,929 10,487 31,658
Expenses:
Management services fee 3,516 648 1,600
Distribution fees - Class 2 441 123 129
Reports to shareholders 38 6 16
Registration statement and
prospectus 33 5 13
Postage, stationery and
supplies 16 2 6
Trustees' fees 10 1 4
Auditing and legal fees 3 1 1
Custodian fee 20 6 11
Taxes other than federal
income tax 19 3 8
Other expenses 8 1 4
4,104 796 1,792
Net investment income 29,825 9,691 29,866
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) 52,960 (192) 6,385
Net change in unrealized appreciation
(depreciation) on investments (94,170) (5,349) (36,885)
Net change in unrealized depreciation
on open forward currency contracts (39) - (221)
Net unrealized appreciation
(depreciation) (94,209) (5,349) (37,106)
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments (41,249) (5,541) (30,721)
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(11,424) $ 4,150 $ (855)
U.S. Government/
AAA-Rated Cash
Securities Management
Fund Fund
INVESTMENT INCOME:
Income:
Dividends - -
Interest $14,920 $9,029
14,920 9,029
Expenses:
Management services fee 1,093 666
Distribution fees - Class 2 59 52
Reports to shareholders 11 7
Registration statement and
prospectus 9 6
Postage, stationery and
supplies 4 3
Trustees' fees 2 2
Auditing and legal fees 1 1
Custodian fee 4 3
Taxes other than federal
income tax 5 4
Other expenses 3 1
1,191 745
Net investment income 13,729 8,284
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS:
Realized gain (loss) (5,249) -
Net change in unrealized appreciation
(depreciation) on investments 6,841 1
Net change in unrealized depreciation
on open forward currency contracts - -
Net unrealized appreciation
(depreciation) 6,841 1
Net realized gain (loss) and
unrealized appreciation (depreciation)
on investments 1,592 1
NET INCREASE(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $15,321 $8,285
See Notes to Financial Statements
</TABLE>
<TABLE>
American Funds Insurance Series
FINANCIAL STATEMENTS
Statement of Changes in Net Assets
(dollars in thousands)
<S> <C> <C> <C>
Global
Growth
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 3,155 $ 349 $ 3,449
Net realized gain (loss) on investments 54,277 7,977 28,893
Net unrealized appreciation (depreciation)
on investments (49,957) 102,879 136,393
Net increase (decrease) in net assets
resulting from operations 7,475 111,205 168,735
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (257) (1,567) (1,453)
Class 2 (224) (1,702) (983)
Total dividends from net investment income (481) (3,269) (2,436)
Distributions from net realized gain on
investments:
Class 1 (3,671) (13,131) (4,603)
Class 2 (4,483) (15,714) (4,305)
Total distributions from net realized gain on
investments (8,154) (28,845) (8,908)
Total dividends and distributions (8,635) (32,114) (11,344)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 93,434 5,394 67,540
Proceeds from shares issued on reinvestment
of dividends and distributions 3,929 14,698 6,056
Cost of shares repurchased (10,885) (1,060) (10,585)
Net increase (decrease) from Class 1 transactions 86,478 19,032 63,011
Class 2:
Proceeds from shares sold 171,765 23,049 108,096
Proceeds from shares issued on reinvestment
of dividends and distributions 4,706 17,416 5,288
Cost of shares repurchased (11,834) (78) (1,571)
Net increase (decrease) from Class 2 transactions 164,637 40,387 111,813
Net increase (decrease) in net
assets resulting from capital share
transactions 251,115 59,419 174,824
TOTAL INCREASE (DECREASE) IN NET ASSETS 249,955 138,510 332,215
NET ASSETS:
Beginning of period 726,027 587,517 255,302
End of period $975,982 $726,027 $587,517
Undistributed net investment income (distributions
in excess of net income) $922 $(1,752) $1,343
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 4,140,284 267,792 4,441,849
Shares issued on reinvestment of dividends
and distributions 167,091 741,190 444,162
Shares repurchased (505,650) (51,502) (681,311)
Net increase (decrease) in shares outstanding 3,801,725 957,480 4,204,700
Class 2:
Shares sold 7,697,439 1,134,476 6,844,522
Shares issued on reinvestment of dividends
and distributions 200,285 878,682 390,215
Shares repurchased (557,660) (3,768) (105,965)
Net increase (decrease) in shares outstanding 7,340,064 2,009,390 7,128,772
Global
Small
Capitalization
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 1,187 $ (20) $ 588
Net realized gain (loss) on investments 45,015 8,252 24,832
Net unrealized appreciation (depreciation)
on investments (60,688) 20,900 61,148
Net increase (decrease) in net assets
resulting from operations (14,486) 29,132 86,568
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (740) (109) (520)
Class 2 (417) - (167)
Total dividends from net investment income (1,157) (109) (687)
Distributions from net realized gain on
investments:
Class 1 (5,149) (15,436) (842)
Class 2 (3,034) (9,376) (273)
Total distributions from net realized gain on
investments (8,183) (24,812) (1,115)
Total dividends and distributions (9,340) (24,921) (1,802)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 138,376 11,812 63,699
Proceeds from shares issued on reinvestment
of dividends and distributions 5,889 15,545 1,362
Cost of shares repurchased (22,319) (2,213) (27,291)
Net increase (decrease) from Class 1 transactions 121,946 25,144 37,770
Class 2:
Proceeds from shares sold 110,311 11,885 43,737
Proceeds from shares issued on reinvestment
of dividends and distributions 3,451 9,376 440
Cost of shares repurchased (4,823) (152) (617)
Net increase (decrease) from Class 2 transactions 108,939 21,109 43,560
Net increase (decrease) in net
assets resulting from capital share
transactions 230,885 46,253 81,330
TOTAL INCREASE (DECREASE) IN NET ASSETS 207,059 50,464 166,096
NET ASSETS:
Beginning of period 288,802 238,338 72,242
End of period $495,861 $288,802 $238,338
Undistributed net investment income (distributions
in excess of net income) $(5) $(35) $92
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 7,038,204 678,864 4,749,605
Shares issued on reinvestment of dividends
and distributions 285,017 940,440 129,600
Shares repurchased (1,237,324) (127,204) (2,142,344)
Net increase (decrease) in shares outstanding 6,085,897 1,492,100 2,736,861
Class 2:
Shares sold 5,767,301 682,640 3,234,870
Shares issued on reinvestment of dividends
and distributions 167,221 567,537 41,588
Shares repurchased (273,495) (8,916) (48,695)
Net increase (decrease) in shares outstanding 5,661,027 1,241,261 3,227,763
Growth
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 16,575 $ 613 $ 11,534
Net realized gain (loss) on investments 1,251,334 65,111 1,261,163
Net unrealized appreciation (depreciation)
on investments 200,406 1,119,232 1,604,675
Net increase (decrease) in net assets
resulting from operations 1,468,315 1,184,956 2,877,372
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (229) (4,509) (14,657)
Class 2 - - (246)
Total dividends from net investment income (229) (4,509) (14,903)
Distributions from net realized gain on
investments:
Class 1 (55,984) (1,112,273) (777,732)
Class 2 (9,478) (151,014) (47,436)
Total distributions from net realized gain on
investments (65,462) (1,263,287) (825,168)
Total dividends and distributions (65,691) (1,267,796) (840,071)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 88,617 2,748 96,088
Proceeds from shares issued on reinvestment
of dividends and distributions 56,213 1,116,782 792,389
Cost of shares repurchased (500,173) (93,709) (792,339)
Net increase (decrease) from Class 1 transactions (355,343) 1,025,821 96,138
Class 2:
Proceeds from shares sold 499,938 72,052 403,546
Proceeds from shares issued on reinvestment
of dividends and distributions 9,478 151,014 47,682
Cost of shares repurchased (18,551) (253) (795)
Net increase (decrease) from Class 2 transactions 490,865 222,813 450,433
Net increase (decrease) in net
assets resulting from capital share
transactions 135,522 1,248,634 546,571
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,538,146 1,165,794 2,583,872
NET ASSETS:
Beginning of period 9,372,774 8,206,980 5,623,108
End of period $10,910,920 $9,372,774 $8,206,980
Undistributed net investment income (distributions
in excess of net income) $16,279 $(67) $4,340
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,160,607 38,157 1,565,510
Shares issued on reinvestment of dividends
and distributions 681,284 16,915,817 15,490,288
Shares repurchased (6,470,400) (1,304,881) (12,994,043)
Net increase (decrease) in shares outstanding (4,628,509) 15,649,093 4,061,755
Class 2:
Shares sold 6,505,404 987,527 6,424,935
Shares issued on reinvestment of dividends
and distributions 115,022 2,288,785 933,831
Shares repurchased (246,328) (3,525) (13,499)
Net increase (decrease) in shares outstanding 6,374,098 3,272,787 7,345,267
International
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 14,292 $ 1,288 $ 35,635
Net realized gain (loss) on investments 385,403 70,792 419,919
Net unrealized appreciation (depreciation)
on investments (398,011) 623,662 971,987
Net increase (decrease) in net assets
resulting from operations 1,684 695,742 1,427,541
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (906) (13,966) (43,883)
Class 2 (18) (1,113) (2,507)
Total dividends from net investment income (924) (15,079) (46,390)
Distributions from net realized gain on
investments:
Class 1 (63,555) (361,017) (47,832)
Class 2 (7,352) (33,456) (2,416)
Total distributions from net realized gain on
investments (70,907) (394,473) (50,248)
Total dividends and distributions (71,831) (409,552) (96,638)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 79,998 3,903 34,895
Proceeds from shares issued on reinvestment
of dividends and distributions 64,461 374,983 91,716
Cost of shares repurchased (301,156) (54,835) (435,475)
Net increase (decrease) from Class 1 transactions (156,697) 324,051 (308,864)
Class 2:
Proceeds from shares sold 281,593 25,293 93,651
Proceeds from shares issued on reinvestment
of dividends and distributions 7,370 34,569 4,922
Cost of shares repurchased (111,288) (3,448) (2,045)
Net increase (decrease) from Class 2 transactions 177,675 56,414 96,528
Net increase (decrease) in net
assets resulting from capital share
transactions 20,978 380,465 (212,336)
TOTAL INCREASE (DECREASE) IN NET ASSETS (49,169) 666,655 1,118,567
NET ASSETS:
Beginning of period 4,503,935 3,837,280 2,718,713
End of period $4,454,766 $4,503,935 $3,837,280
Undistributed net investment income (distributions
in excess of net income) $14,048 $680 $15,014
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 2,945,992 149,417 1,765,824
Shares issued on reinvestment of dividends
and distributions 2,216,679 15,169,223 5,064,143
Shares repurchased (10,879,484) (2,089,938) (22,707,024)
Net increase (decrease) in shares outstanding (5,716,813) 13,228,702 (15,877,057)
Class 2:
Shares sold 10,307,497 962,154 4,634,989
Shares issued on reinvestment of dividends
and distributions 253,610 1,398,428 269,559
Shares repurchased (4,086,677) (134,060) (104,840)
Net increase (decrease) in shares outstanding 6,474,430 2,226,522 4,799,708
New
World
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 1,288 $ 128 $ 372
Net realized gain (loss) on investments 3,866 272 9
Net unrealized appreciation (depreciation)
on investments (8,970) 7,725 3,445
Net increase (decrease) in net assets
resulting from operations (3,816) 8,125 3,826
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (70) (150) (67)
Class 2 (65) (108) (34)
Total dividends from net investment income (135) (258) (101)
Distributions from net realized gain on
investments:
Class 1 (135) (18) -
Class 2 (134) (16) -
Total distributions from net realized gain on
investments (269) (34) -
Total dividends and distributions (404) (292) (101)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 28,778 4,008 25,029
Proceeds from shares issued on reinvestment
of dividends and distributions 205 169 67
Cost of shares repurchased (14,335) (76) (440)
Net increase (decrease) from Class 1 transactions 14,648 4,101 24,656
Class 2:
Proceeds from shares sold 53,991 6,314 26,970
Proceeds from shares issued on reinvestment
of dividends and distributions 199 123 34
Cost of shares repurchased (7,239) (39) (302)
Net increase (decrease) from Class 2 transactions 46,951 6,398 26,702
Net increase (decrease) in net
assets resulting from capital share
transactions 61,599 10,499 51,358
TOTAL INCREASE (DECREASE) IN NET ASSETS 57,379 18,332 55,083
NET ASSETS:
Beginning of period 83,415 65,083 10,000
End of period $140,794 $83,415 $65,083
Undistributed net investment income (distributions
in excess of net income) $1,282 $129 $261
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 2,367,300 353,465 2,519,706
Shares issued on reinvestment of dividends
and distributions 16,543 14,709 7,034
Shares repurchased (1,223,449) (6,839) (44,653)
Net increase (decrease) in shares outstanding 1,160,394 361,335 2,482,087
Class 2:
Shares sold 4,561,591 555,757 2,709,210
Shares issued on reinvestment of dividends
and distributions 16,087 10,726 3,570
Shares repurchased (628,996) (3,499) (30,258)
Net increase (decrease) in shares outstanding 3,948,682 562,984 2,682,522
Growth-
Income
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 80,493 $ 13,929 $ 132,880
Net realized gain (loss) on investments 707,915 112,696 1,254,871
Net unrealized appreciation (depreciation)
on investments (591,506) 116,969 (469,846)
Net increase (decrease) in net assets
resulting from operations 196,902 243,594 917,905
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (11,797) (30,097) (115,275)
Class 2 (2,282) (4,645) (11,450)
Total dividends from net investment income (14,079) (34,742) (126,725)
Distributions from net realized gain on ----------- ----------- -----------
investments:
Class 1 (93,236) (1,067,593) (978,251)
Class 2 (19,969) (190,136) (85,964)
Total distributions from net realized gain on
investments (113,205) (1,257,729) (1,064,215)
Total dividends and distributions (127,284) (1,292,471) (1,190,940)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 22,779 1,257 30,036
Proceeds from shares issued on reinvestment
of dividends and distributions 105,033 1,097,689 1,093,525
Cost of shares repurchased (612,594) (113,133) (1,041,360)
Net increase (decrease) from Class 1 transactions (484,782) 985,813 82,201
Class 2:
Proceeds from shares sold 318,186 57,496 474,135
Proceeds from shares issued on reinvestment
of dividends and distributions 22,251 194,782 97,415
Cost of shares repurchased (19,046) (549) (2,294)
Net increase (decrease) from Class 2 transactions 321,391 251,729 569,256
Net increase (decrease) in net
assets resulting from capital share
transactions (163,391) 1,237,542 651,457
TOTAL INCREASE (DECREASE) IN NET ASSETS (93,773) 188,665 378,422
NET ASSETS:
Beginning of period 7,834,804 7,646,139 7,267,717
End of period $7,741,031 $7,834,804 $7,646,139
Undistributed net investment income (distributions
in excess of net income) $80,128 $13,714 $34,526
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 678,353 35,851 774,972
Shares issued on reinvestment of dividends
and distributions 3,115,789 34,671,173 30,452,267
Shares repurchased (18,616,113) (3,155,701) (26,889,197)
Net increase (decrease) in shares outstanding (14,821,971) 31,551,323 4,338,042
Class 2:
Shares sold 9,648,710 1,563,119 12,167,829
Shares issued on reinvestment of dividends
and distributions 660,675 6,154,235 2,709,787
Shares repurchased (581,778) (16,395) (59,137)
Net increase (decrease) in shares outstanding 9,727,607 7,700,959 14,818,479
Asset
Allocation
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 29,825 $ 5,313 $ 59,629
Net realized gain (loss) on investments 52,960 (2,150) 108,464
Net unrealized appreciation (depreciation)
on investments (94,209) 21,367 (42,237)
Net increase (decrease) in net assets
resulting from operations (11,424) 24,530 125,856
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (4,190) (12,197) (51,835)
Class 2 (1,092) (2,742) (7,683)
Total dividends from net investment income (5,282) (14,939) (59,518)
Distributions from net realized gain on
investments:
Class 1 - (87,617) (102,723)
Class 2 - (21,187) (12,480)
Total distributions from net realized gain on
investments - (108,804) (115,203)
Total dividends and distributions (5,282) (123,743) (174,721)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 8,849 945 16,085
Proceeds from shares issued on reinvestment
of dividends and distributions 4,190 99,814 154,558
Cost of shares repurchased (171,489) (27,140) (231,188)
Net increase (decrease) from Class 1 transactions (158,450) 73,619 (60,545)
Class 2:
Proceeds from shares sold 64,379 16,286 138,364
Proceeds from shares issued on reinvestment
of dividends and distributions 1,092 23,929 20,163
Cost of shares repurchased (23,266) (1,014) (5,215)
Net increase (decrease) from Class 2 transactions 42,205 39,201 153,312
Net increase (decrease) in net
assets resulting from capital share
transactions (116,245) 112,820 92,767
TOTAL INCREASE (DECREASE) IN NET ASSETS (132,951) 13,607 43,902
NET ASSETS:
Beginning of period 1,728,120 1,714,513 1,670,611
End of period $1,595,169 $1,728,120 $1,714,513
Undistributed net investment income (distributions
in excess of net income) $29,659 $5,116 $14,824
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 609,682 61,842 1,006,722
Shares issued on reinvestment of dividends
and distributions 279,179 6,831,915 9,936,348
Shares repurchased (11,620,370) (1,747,496) (14,375,597)
Net increase (decrease) in shares outstanding (10,731,509) 5,146,261 (3,432,527)
Class 2:
Shares sold 4,364,601 1,035,600 8,584,297
Shares issued on reinvestment of dividends
and distributions 72,823 1,637,814 1,294,397
Shares repurchased (1,585,875) (66,355) (326,832)
Net increase (decrease) in shares outstanding 2,851,549 2,607,059 9,551,862
Bond
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 9,691 $1,621 $ 17,076
Net realized gain (loss) on investments (192) (155) (1,349)
Net unrealized appreciation (depreciation)
on investments (5,349) 50 (10,336)
Net increase (decrease) in net assets
resulting from operations 4,150 1,516 5,391
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (1,045) (3,003) (12,348)
Class 2 (649) (1,422) (3,828)
Total dividends from net investment income (1,694) (4,425) (16,176)
Distributions from net realized gain on
investments:
Class 1 (861)
Class 2 - - (219)
Total distributions from net realized gain on
investments - - (1,080)
Total dividends and distributions (1,694) (4,425) (17,256)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 5,040 226 23,707
Proceeds from shares issued on reinvestment
of dividends and distributions 1,045 3,003 13,208
Cost of shares repurchased (24,602) (5,507) (40,585)
Net increase (decrease) from Class 1 transactions (18,517) (2,278) (3,670)
Class 2:
Proceeds from shares sold 30,637 5,106 37,873
Proceeds from shares issued on reinvestment
of dividends and distributions 649 1,422 4,048
Cost of shares repurchased (3,930) (424) (4,348)
Net increase (decrease) from Class 2 transactions 27,356 6,104 37,573
Net increase (decrease) in net
assets resulting from capital share
transactions 8,839 3,826 33,903
TOTAL INCREASE (DECREASE) IN NET ASSETS 11,295 917 22,038
NET ASSETS:
Beginning of period 254,234 253,317 231,279
End of period $265,529 $254,234 $253,317
Undistributed net investment income (distributions
in excess of net income) $9,577 $1,580 $4,385
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 515,477 22,935 2,350,427
Shares issued on reinvestment of dividends
and distributions 106,703 308,959 1,326,283
Shares repurchased (2,524,249) (559,581) (4,049,517)
Net increase (decrease) in shares outstanding (1,902,069) (227,687) (372,807)
Class 2:
Shares sold 3,143,639 517,185 3,794,942
Shares issued on reinvestment of dividends
and distributions 66,385 146,356 407,478
Shares repurchased (403,743) (43,351) (435,922)
Net increase (decrease) in shares outstanding 2,806,281 620,190 3,766,498
High-Yield
Bond
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $ 29,866 $5,386 $ 66,908
Net realized gain (loss) on investments 6,385 (922) (13,757)
Net unrealized appreciation (depreciation)
on investments (37,106) 7,971 (22,449)
Net increase (decrease) in net assets
resulting from operations (855) 12,435 30,702
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (4,522) (13,126) (64,228)
Class 2 (855) (2,138) (7,684)
Total dividends from net investment income (5,377) (15,264) (71,912)
Distributions from net realized gain on
investments:
Class 1 - - (9,729)
Class 2 - - (966)
Total distributions from net realized gain on
investments - - (10,695)
Total dividends and distributions (5,377) (15,264) (82,607)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 7,265 1,744 18,289
Proceeds from shares issued on reinvestment
of dividends and distributions 4,522 13,126 73,957
Cost of shares repurchased (87,830) (15,279) (171,534)
Net increase (decrease) from Class 1 transactions (76,043) (409) (79,288)
Class 2:
Proceeds from shares sold 28,478 3,289 30,578
Proceeds from shares issued on reinvestment
of dividends and distributions 855 2,138 8,650
Cost of shares repurchased (19,522) (940) (6,260)
Net increase (decrease) from Class 2 transactions 9,811 4,487 32,968
Net increase (decrease) in net
assets resulting from capital share
transactions (66,232) 4,078 (46,320)
TOTAL INCREASE (DECREASE) IN NET ASSETS (72,464) 1,249 (98,225)
NET ASSETS:
Beginning of period 685,326 684,077 782,302
End of period $612,862 $685,326 $684,077
Undistributed net investment income (distributions
in excess of net income) $28,503 $4,014 $13,841
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 577,819 136,572 1,381,259
Shares issued on reinvestment of dividends
and distributions 363,205 1,034,422 5,670,708
Shares repurchased (6,964,379) (1,188,364) (12,975,153)
Net increase (decrease) in shares outstanding (6,023,355) (17,370) (5,923,186)
Class 2:
Shares sold 2,259,391 254,659 2,325,235
Shares issued on reinvestment of dividends
and distributions 68,706 168,481 665,715
Shares repurchased (1,548,482) (73,302) (480,054)
Net increase (decrease) in shares outstanding 779,615 349,838 2,510,896
U.S.
Government/
AAA-Rated
Securities
Fund
Six
months Period Year
ended ended ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $13,729 $ 2,476 $ 32,028
Net realized gain (loss) on investments (5,249) (450) (3,881)
Net unrealized appreciation (depreciation)
on investments 6,841 (3,972) (27,213)
Net increase (decrease) in net assets
resulting from operations 15,321 (1,946) 934
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (2,112) (6,962) (30,055)
Class 2 (248) (756) (2,227)
Total dividends from net investment income (2,360) (7,718) (32,282)
Distributions from net realized gain on
investments:
Class 1 - - -
Class 2 - - -
Total distributions from net realized gain on
investments - - -
Total dividends and distributions (2,360) (7,718) (32,282)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 10,947 941 27,407
Proceeds from shares issued on reinvestment
of dividends and distributions 2,112 6,961 30,055
Cost of shares repurchased (79,403) (10,015) (133,690)
Net increase (decrease) from Class 1 transactions (66,344) (2,113) (76,228)
Class 2:
Proceeds from shares sold 9,075 1,753 22,324
Proceeds from shares issued on reinvestment
of dividends and distributions 248 757 2,227
Cost of shares repurchased (8,715) (358) (7,625)
Net increase (decrease) from Class 2 transactions 608 2,152 16,926
Net increase (decrease) in net
assets resulting from capital share
transactions (65,736) 39 (59,302)
TOTAL INCREASE (DECREASE) IN NET ASSETS (52,775) (9,625) (90,650)
NET ASSETS:
Beginning of period 468,554 478,179 568,829
End of period $415,779 $468,554 $478,179
Undistributed net investment income (distributions
in excess of net income) $13,679 $2,310 $7,682
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 1,018,715 87,758 2,460,496
Shares issued on reinvestment of dividends
and distributions 196,819 659,229 2,735,646
Shares repurchased (7,462,570) (935,749) (12,168,746)
Net increase (decrease) in shares outstanding (6,247,036) (188,762) (6,972,604)
Class 2:
Shares sold 850,846 162,396 2,025,288
Shares issued on reinvestment of dividends
and distributions 23,195 71,621 203,277
Shares repurchased (817,966) (33,738) (691,609)
Net increase (decrease) in shares outstanding 56,075 200,279 1,536,956
Cash
Management
Fund
Six
months Period
ended ended Year ended
June 30, December 31, November 30,
2000 (1) 1999 (2) 1999
OPERATIONS:
Net investment income (loss) $8,284 $1,610 $14,942
Net realized gain (loss) on investments - - -
Net unrealized appreciation (depreciation)
on investments 1 2 (3)
Net increase (decrease) in net assets
resulting from operations 8,285 1,612 14,939
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income:
Class 1 (1,413) (3,707) (13,032)
Class 2 (223) (526) (1,667)
Total dividends from net investment income (1,636) (4,233) (14,699)
Distributions from net realized gain on
investments:
Class 1 - - -
Class 2 - - -
Total distributions from net realized gain on
investments - - -
Total dividends and distributions (1,636) (4,233) (14,699)
CAPITAL SHARE TRANSACTIONS:
Class 1:
Proceeds from shares sold 148,236 19,537 282,973
Proceeds from shares issued on reinvestment
of dividends and distributions 1,413 3,707 13,032
Cost of shares repurchased (232,973) (10,257) (239,463)
Net increase (decrease) from Class 1 transactions (83,324) 12,987 56,542
Class 2:
Proceeds from shares sold 36,123 4,545 41,842
Proceeds from shares issued on reinvestment
of dividends and distributions 223 526 1,667
Cost of shares repurchased (43,324) (4,794) (29,551)
Net increase (decrease) from Class 2 transactions (6,978) 277 13,958
Net increase (decrease) in net
assets resulting from capital share
transactions (90,302) 13,264 70,500
TOTAL INCREASE (DECREASE) IN NET ASSETS (83,653) 10,643 70,740
NET ASSETS:
Beginning of period 364,899 354,256 283,516
End of period $281,246 $364,899 $354,256
Undistributed net investment income (distributions
in excess of net income) $8,240 $1,592 $4,215
SHARES OF BENEFICIAL INTEREST:
Class 1:
Shares sold 13,260,893 1,759,589 25,510,844
Shares issued on reinvestment of dividends
and distributions 126,920 336,087 1,182,023
Shares repurchased (20,886,933) (922,781) (21,593,174)
Net increase (decrease) in shares outstanding (7,499,120) 1,172,895 5,099,693
Class 2:
Shares sold 3,234,447 409,857 3,773,972
Shares issued on reinvestment of dividends
and distributions 20,032 47,642 151,230
Shares repurchased (3,885,971) (431,087) (2,666,463)
Net increase (decrease) in shares outstanding (631,492) 26,412 1,258,739
(1) Unaudited.
(2) Represents the one-month period
ended December 31, 1999.
(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 Funds Insurance Series (the "series," formerly known as
American Variable Insurance Series), is registered under the Investment Company
Act of 1940 as an open-end, diversified management investment company with 11
different funds. The series' year-end changed from November 30 to December 31
effective December 1, 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; International Fund - long-term
growth of capital by investing primarily in securities of issuers domiciled
outside the United States; 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; Growth-Income Fund -
growth of capital and income by investing primarily in common stocks or other
securities which demonstrate the potential for appreciation and/or dividends;
Asset Allocation Fund - high total return (including income and capital gains)
consistent with long-term preservation of capital; Bond Fund - as high a level
of current income as is consistent with the preservation of capital by
investing primarily in fixed-income securities; High-Yield Bond Fund - high
current income and, secondarily, capital appreciation by investing primarily in
intermediate and long-term corporate obligations, with emphasis on higher
yielding, higher risk, lower rated or unrated securities; U.S.
Government/AAA-Rated Securities Fund - a high level of current income
consistent with prudent investment risk and preservation of capital by
investing primarily in a combination of securities guaranteed by the U.S.
government and other debt securities rated AAA or Aaa; Cash Management Fund -
high current yield while preserving capital by investing in a diversified
selection of high-quality money market instruments.
Each fund in the series offers Class 1 and Class 2 shares. Class 2 shares,
only, bear certain distribution expenses. Holders of both classes of shares
have equal pro rata rights to assets and identical voting, dividend,
liquidation and other rights and shall have exclusive rights to vote on matters
affecting only their classes.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been prepared
in conformity with generally accepted accounting principles which require
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies consistently followed by the series in the preparation of its
financial statements:
SECURITY VALUATION - Equity securities, including depositary receipts, are
valued at the last reported sale price on the exchange or market on which such
securities are traded, as of the close of business on the day the securities
are being valued or, lacking any sales, at the last available bid price. In
cases where equity securities are traded on more than one exchange, the
securities are valued on the exchange or market determined by the investment
adviser to be the broadest and most representative market, which may be either
a securities exchange or the over-the-counter market. Fixed-income securities
are valued at prices obtained from a pricing service, when such prices are
available; however, in circumstances where the investment adviser deems it
appropriate to do so, such securities will be valued at the mean quoted bid and
asked prices or at prices for securities of comparable maturity, quality and
type. The ability of the issuers of the debt securities held by the series to
meet their obligations may be affected by economic developments in a specific
industry, state or region. Short-term securities maturing within 60 days are
valued at amortized cost, which approximates market value. Forward currency
contracts are valued at the mean of their representative quoted bid and asked
prices. Securities and assets for which representative market quotations are
not readily available are valued at fair value as determined in good faith by a
committee appointed by the Board of Trustees.
NON-U.S. CURRENCY TRANSLATION - Assets and liabilities initially expressed in
terms of non-U.S. currencies are translated into U.S. dollars at the prevailing
market rates at the end of the reporting period. Purchases and sales of
securities and income and expenses are translated into U.S. dollars at the
prevailing market rates on the dates of such transactions. The effects of
changes in non-U.S. currency exchange rates on investment securities and other
assets and liabilities are included with the net realized and unrealized gain
or loss on investment securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for as of the trade date. Realized gains and losses from securities
transactions are determined based on specific identified cost. In the event
securities are purchased on a delayed delivery or "when-issued" basis, the
series will instruct the custodian to segregate liquid assets 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.
ALLOCATIONS - Income, expenses other than class-specific expenses and realized
and unrealized gains and losses are allocated daily between the classes based
on their relative net asset values. Distribution expenses and any other
class-specific expenses, are accrued daily and charged to the applicable share
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 The series
complies with the requirements of the Internal Revenue Code applicable to
regulated investment companies and intends to distribute all of its net taxable
income and net capital gains for the fiscal year. As a regulated investment
company, the series is not subject to income taxes if such distributions are
made. Required distributions are determined on a tax basis and may differ from
net investment income and net realized gains for financial reporting purposes.
In addition, the fiscal year in which amounts are distributed may differ from
the year in which the net investment income and net realized gains are recorded
by the series.
The Bond Fund, the High-Yield Bond Fund, and the U.S. Government/AAA-Rated
Securities Fund had net capital loss carryforwards available at June 30, 2000,
as indicated in the table below. 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.
Additional tax basis disclosures as of and for the six months ended June 30,
2000, are as follows:
<TABLE>
(dollars in thousands)
<S> <C> <C> <C>
Global Global Small
Growth Capitalization Growth
Fund Fund Fund
For the six months
ended June 30. 2000:
Net capital gain (loss) $ 54,278 $ 45,016 $1,252,340
Net currency gain (loss) (1) - (6)
As of June 30, 2000 (excluding
forward currency contracts):
Unrealized
appreciation 280,338 76,365 4,937,043
Unrealized
depreciation 65,602 58,713 388,239
Net unrealized
appreciation
(depreciation) 214,736 17,652 4,548,804
Cost of portfolio
securities 762,336 482,855 6,367,045
As of June 30, 2000
Capital loss carryforward - - -
New Growth-
International World Income
Fund Fund Fund
For the six months
ended June 30. 2000:
Net capital gain (loss) $ 385,388 $ 3,935 $ 707,942
Net currency gain (loss) 15 (69) (27)
As of June 30, 2000 (excluding
forward currency contracts):
Unrealized
appreciation 1,947,118 15,094 1,458,500
Unrealized
depreciation 134,574 12,896 936,634
Net unrealized
appreciation
(depreciation) 1,812,544 2,198 521,866
Cost of portfolio
securities 2,651,529 137,688 7,136,938
As of June 30, 2000
Capital loss carryforward - - -
Asset High-Yield
Allocation Bond Bond
Fund Fund Fund
For the six months
ended June 30. 2000:
Net capital gain (loss) $ 53,185 $ 401 $ 6,434
Net currency gain (loss) (140) (593) (271)
As of June 30, 2000 (excluding
forward currency contracts):
Unrealized
appreciation 313,160 2,565 23,142
Unrealized
depreciation 150,369 20,001 114,109
Net unrealized
appreciation
(depreciation) 162,791 (17,436) (90,967)
Cost of portfolio
securities 1,424,655 279,456 697,671
As of June 30, 2000
Capital loss carryforward - 1,100 13,266
U.S. Government/ Cash
AAA-Rated Management
Securities Fund Fund
For the six months
ended June 30. 2000:
Net capital gain (loss) $ (5,249) -
Net currency gain (loss) - -
As of June 30, 2000 (excluding
forward currency contracts):
Unrealized
appreciation 3,574 -
Unrealized
depreciation 12,373 -
Net unrealized
appreciation
(depreciation) (8,799) -
Cost of portfolio
securities 423,456 290,028
As of June 30, 2000
Capital loss carryforward 25,107 -
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 and net asset levels:
</TABLE>
<TABLE>
<CAPTION>
Average Net Asset Level
(in billions)
FUND RATE IN EXCESS OF UP TO
<S> <C> <C> <C>
Global Growth .69% $- $.6
.59 .6 1.2
.53 1.2
Global Small .80 - .6
Capitalization .74 .6
Growth .50 - .6
.45 .6 1.2
.42 1.2 2.0
.37 2.0 3.2
.35 3.2 5.2
.33 5.2 8.4
.315 8.4
International .78 - .6
.60 .6 1.2
.48 1.2 2.0
.465 2.0
New World Fund .85 -
Growth-Income .50 - .6
.45 .6 1.5
.40 1.5 2.5
.32 2.5 4.0
.285 4.0 6.5
.256 6.5 10.5
.242 10.5
Asset Allocation .50 - .6
.42 .6 1.2
.36 1.2 2.0
.32 2.0
Bond .60 - .03
.50 .03
High-Yield Bond .60 - .03
.50 .03 .6
.46 .6
U.S. Government/ AAA- .60 - .03
Rated Securities .50 .03 .6
.40 .6
Cash Management .50 - .1
.42 .1 .4
.38 .4
</TABLE>
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution, each fund may
expend 0.25% of the average daily net assets of Class 2 shares in connection
with certain distribution services and related activities. During the six
months ended June 30, 2000, distribution expenses under the Plan for the series
aggregated $5,887,000. As of June 30, 2000, accrued and unpaid distribution
expenses were $1,104,000. Class 1 shares have not adopted a plan of
distribution to cover any distribution expenses.
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 June 30, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993) net of any payments to
Trustees were $813,000. Certain Trustees and officers of the series are or may
be considered to be affiliated with CRMC. No such persons received any
remuneration directly from the series.
5. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The following table presents additional information as of and for the six
months ended June 30, 2000:
<TABLE>
(dollars in thousands)
<S> <C> <C> <C>
Global Global Small
Growth Capitalization Growth
Fund Fund Fund
For the six months
ended June 30, 2000
Purchases of
investment
securities (1) $ 267,737 $ 310,940 $1,913,079
Sales of invest-
ment securities (1) 131,530 111,808 2,184,059
Non-U.S taxes withheld on
dividend and interest income 308 116 -
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts, and other receivables
and payables (1) (4) (6)
As of June 30, 2000
Capital paid in on shares of
beneficial interest 706,228 433,314 5,094,864
Undistributed net investment
income 922 (5) 16,279
Accumulated net realized
gain (loss) 54,095 44,900 1,250,975
Net unrealized
appreciation (depreciation) 214,737 17,652 4,548,802
Net Assets 975,982 495,861 10,910,920
New Growth-
Interna- World Income
tional Fund Fund Fund
For the six months
ended June 30, 2000
Purchases of
investment
securities (1) $ 717,574 $ 70,493 $1,538,101
Sales of invest-
ment securities (1) 822,901 16,834 2,005,436
Non-U.S taxes withheld on
dividend and interest income 3,109 108 -
Book basis net currency
gain (loss) on dividends,
interest, sales of
non-U.S. bonds, forward currency
contracts, and other receivables
and payables 15 (69) (27)
As of June 30, 2000
Capital paid in on shares of
beneficial interest 2,242,975 133,456 6,431,372
Undistributed net investment
income 14,048 1,282 80,128
Accumulated net realized
gain (loss) 385,259 3,856 707,663
Net unrealized
appreciation (depreciation) 1,812,484 2,200 521,868
Net Assets 4,454,766 140,794 7,741,031
Asset High-Yield
Allocation Bond Bond
Fund Fund Fund
For the six months
ended June 30, 2000
Purchases of
investment
securities (1) $ 279,746 $ 73,367 $ 128,343
Sales of invest-
ment securities (1) 325,907 73,388 185,402
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 (140) (688) (899)
As of June 30, 2000
Capital paid in on shares of
beneficial interest 1,351,909 275,077 688,669
Undistributed net investment
income 29,659 9,577 28,503
Accumulated net realized
gain (loss) 50,810 (1,692) (13,315)
Net unrealized
appreciation (depreciation) 162,791 (17,433) (90,995)
Net Assets 1,595,169 265,529 612,862
thousands)
U.S. Government/ Cash
AAA-Rated Management
Securities Fund Fund
For the six months
ended June 30, 2000
Purchases of
investment
securities (1) $ 115,667 $ 1,256,725
Sales of invest-
ment securities (1) 192,995 1,341,312
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 June 30, 2000
Capital paid in on shares of
beneficial interest 436,006 273,006
Undistributed net investment
income 13,679 8,240
Accumulated net realized -
gain (loss) (25,107)
Net unrealized
appreciation (depreciation) (8,799) -
Net Assets 415,779 281,246
(1) Excludes short-
term securities, except for the
Cash Management Fund.
</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 six months ended June 30, 2000, custodian fees for
the series aggregated $1,531,000, of which $91,000 was paid by these credits
rather than in cash.
The Asset Allocation Fund and the High-Yield Bond Fund had outstanding forward
currency contracts to sell non-U.S. currencies as follows:
<TABLE>
Contract U.S.
Amount Valuation
Unrealized
Appreciation
Non-U.S. Currency Fund Non-U.S. U.S. Amount (Depreciation)
Sale Contracts
<S> <C> <C> <C> <C> <C>
At June 30, 2000:
Euro Asset 1,665,000 1,552,000 1,591,000 (39,000)
expiring 7/07/00 Allocation
Euro High-Yield 4,707,000 4,432,000 4,512,000 (80,000)
expiring 7/25-9/29/00 Bond
British Pounds High-Yield 3,803,000 5,816,000 5,770,000 46,000
expiring 7/26-9/19/00 Bond
</TABLE>
<TABLE>
PER-SHARE
DATA AND
RATIOS (1)
<S> <C>
Net gains
(losses) on
Net asset Net securities
value, invest- (both realized
Period beginning ment and
Ended of period income unrealized)
Global Growth Fund (2)
Class 1
06/30/2000 $21.42 $.09 (3) $.38 (3)
12/31/1999 18.99 .01 3.43
11/30/1999 13.02 .14 6.39
11/30/1998 10.62 .13 2.43
11/30/1997 10.00 .06 .59
Class 2
06/30/2000 21.41 .07 (3) .38 (3)
12/31/1999 18.98 .01 3.42
11/30/1999 13.02 .11 6.37
11/30/1998 10.61 .10 2.44
11/30/1997 10.00 .03 .60
Global Small Capitalization Fund (6)
Class 1
06/30/2000 $17.37 $.06 (3) $.43 (3)
12/31/1999 17.16 - 1.92
11/30/1999 9.11 .06 8.20
11/30/1998 10.00 .07 (.92)
Class 2
06/30/2000 17.36 .03 (3) .43 (3)
12/31/1999 17.14 - 1.92
11/30/1999 9.10 .04 8.19
11/30/1998 10.00 .04 (.91)
Growth Fund
Class 1
06/30/2000 $70.62 $.13 (3) $10.90 (3)
12/31/1999 72.12 .01 9.64
11/30/1999 54.91 .11 25.35
11/30/1998 50.12 .19 10.91
11/30/1997 43.53 .27 9.61
11/30/1996 41.81 .24 5.17
11/30/1995 31.94 .33 10.63
Class 2
06/30/2000 70.57 .04 (3) 10.89 (3)
12/31/1999 72.04 - 9.63
11/30/1999 54.88 (.02) 25.33
11/30/1998 50.09 .08 10.90
11/30/1997 40.59 .11 9.51
International Fund
Class 1
06/30/2000 $26.74 $.09 (3) $(.07) (3)
12/31/1999 25.08 .01 4.34
11/30/1999 16.57 .25 8.87
11/30/1998 16.07 .22 2.21
11/30/1997 15.53 .25 1.18
11/30/1996 13.89 .28 1.96
11/30/1995 13.27 .34 1.02
Class 2
06/30/2000 26.73 .06 (3) (.07) (3)
12/31/1999 25.07 .01 4.33
11/30/1999 16.56 .10 8.98
11/30/1998 16.06 .20 2.19
11/30/1997 15.86 .13 .23
New World Fund (7)
Class 1
06/30/2000 $11.77 $.14 (3) $(.32) (3)
12/31/1999 10.56 .01 1.25
11/30/1999 10.00 .07 .51
Class 2
06/30/2000 11.77 .12 (3) (.31) (3)
12/31/1999 10.55 .02 1.25
11/30/1999 10.00 .06 .51
Growth Income Fund
Class 1
06/30/2000 $33.08 $.35 (3) $1.09 (3)
12/31/1999 38.70 .06 .88
11/30/1999 40.73 .69 3.94
11/30/1998 39.97 .67 4.60
11/30/1997 35.73 .73 6.78
11/30/1996 31.47 .71 5.55
11/30/1995 25.30 .73 7.20
Class 2
06/30/2000 33.07 .31 (3) 1.03 (3)
12/31/1999 38.67 .07 .87
11/30/1999 40.70 .59 3.94
11/30/1998 39.94 .58 4.60
11/30/1997 34.10 .37 5.82
Asset Allocation Fund
Class 1
06/30/2000 $15.07 $.28 (3) $(.36) (3)
12/31/1999 16.03 .05 .15
11/30/1999 16.57 .58 .60
11/30/1998 16.16 .58 1.27
11/30/1997 15.18 .55 1.94
11/30/1996 13.77 .53 1.89
11/30/1995 11.25 .50 2.69
Class 2
06/30/2000 15.06 .26 (3) (.35) (3)
12/31/1999 16.02 .05 .14
11/30/1999 16.56 .53 .61
11/30/1998 16.15 .53 1.28
11/30/1997 14.43 .29 1.69
Bond Fund (8)
Class 1
06/30/2000 $9.74 $.38 (3) $(.21) (3)
12/31/1999 9.86 .07 (.01)
11/30/1999 10.37 .73 (.50)
11/30/1998 10.62 .67 (.15)
11/30/1997 10.31 .63 .30
11/30/1996 10.00 .40 .16
Class 2
06/30/2000 9.74 .37 (3) (.21) (3)
12/31/1999 9.85 .06 -
11/30/1999 10.36 .67 (.47)
11/30/1998 10.61 .65 (.15)
11/30/1997 10.11 .35 .46
High-Yield Bond Fund
Class 1
06/30/2000 $12.75 $.59 (3) $(.59) (3)
12/31/1999 12.81 .11 .12
11/30/1999 13.77 1.26 (.72)
11/30/1998 14.96 1.26 (1.04)
11/30/1997 14.51 1.29 .43
11/30/1996 13.99 1.28 .54
11/30/1995 12.89 1.32 1.10
Class 2
06/30/2000 12.75 .58 (3) (.60) (3)
12/31/1999 12.80 .11 .12
11/30/1999 13.76 1.18 (.67)
11/30/1998 14.95 1.25 (1.06)
11/30/1997 14.28 .69 .61
U.S. Government/AAA-Rated Securities Fund
Class 1
06/30/2000 $10.56 $.34 (3) $.06 (3)
12/31/1999 10.78 .06 (.10)
11/30/1999 11.43 .69 (.67)
11/30/1998 11.18 .68 .26
11/30/1997 11.29 .76 (.07)
11/30/1996 11.52 .83 (.24)
11/30/1995 10.80 .82 .71
Class 2
06/30/2000 10.56 .33 (3) .05 (3)
12/31/1999 10.78 .05 (.10)
11/30/1999 11.42 .65 (.64)
11/30/1998 11.17 .68 .24
11/30/1997 10.83 .38 .33
Cash Management Fund
Class 1
06/30/2000 $11.05 $.31 (3) -
12/31/1999 11.13 .05 -
11/30/1999 11.13 .49 $.02
11/30/1998 11.13 .57 (.01)
11/30/1997 11.12 .57 (.01)
11/30/1996 11.11 .54 .01
11/30/1995 11.09 .63 (.02)
Class 2
06/30/2000 11.04 .30 (3) -
12/31/1999 11.12 .05 -
11/30/1999 11.12 .48 -
11/30/1998 11.12 .55 (.02)
11/30/1997 11.07 .28 .03
Total Dividends Distri-
from (from net butions
invest- invest- (from
Period ment ment capital
Ended operations income) gains)
Global Growth Fund (2)
Class 1
06/30/2000 $.47 $(.01) $(.20)
12/31/1999 3.44 (.11) (.90)
11/30/1999 6.53 (.12) (.44)
11/30/1998 2.56 (.14) (.02)
11/30/1997 .65 (.03) -
Class 2
06/30/2000 .45 (.01) (.20)
12/31/1999 3.43 (.10) (.90)
11/30/1999 6.48 (.08) (.44)
11/30/1998 2.54 (.11) (.02)
11/30/1997 .63 (.02) -
Global Small Capitalization Fund (6)
Class 1
06/30/2000 $.49 $(.05) $(.32)
12/31/1999 1.92 (.01) (1.70)
11/30/1999 8.26 (.08) (.13)
11/30/1998 (.85) (.04) -
Class 2
06/30/2000 .46 (.04) (.32)
12/31/1999 1.92 - (1.70)
11/30/1999 8.23 (.06) (.13)
11/30/1998 (.87) (.03) -
Growth Fund
Class 1
06/30/2000 $11.03 - $(.49)
12/31/1999 9.65 $(.05) (11.10)
11/30/1999 25.46 (.14) (8.11)
11/30/1998 11.10 (.17) (6.14)
11/30/1997 9.88 (.27) (3.02)
11/30/1996 5.41 (.29) (3.40)
11/30/1995 10.96 (.29) (0.80)
Class 2
06/30/2000 10.93 - (.49)
12/31/1999 9.63 - (11.10)
11/30/1999 25.31 (.04) (8.11)
11/30/1998 10.98 (.05) (6.14)
11/30/1997 9.62 (.12) -
International Fund
Class 1
06/30/2000 $.02 $(.01) $(.42)
12/31/1999 4.35 (.10) (2.59)
11/30/1999 9.12 (.30) (.31)
11/30/1998 2.43 (.28) (1.65)
11/30/1997 1.43 (.27) (.62)
11/30/1996 2.24 (.31) (.29)
11/30/1995 1.36 (.33) (.41)
Class 2
06/30/2000 (.01) - (.42)
12/31/1999 4.34 (.09) (2.59)
11/30/1999 9.08 (.26) (.31)
11/30/1998 2.39 (.24) (1.65)
11/30/1997 .36 (.16) -
New World Fund (7)
Class 1
06/30/2000 $(.18) $(.01) $(.03)
12/31/1999 1.26 (.04) (.01)
11/30/1999 .58 (.02) -
Class 2
06/30/2000 (.19) (.01) (.03)
12/31/1999 1.27 (.04) (.01)
11/30/1999 .57 (.02) -
Growth Income Fund
Class 1
06/30/2000 $1.44 $(.62) $(.49)
12/31/1999 .94 (.18) (6.38)
11/30/1999 4.63 (.66) (6.00)
11/30/1998 5.27 (.68) (3.83)
11/30/1997 7.51 (.72) (2.55)
11/30/1996 6.26 (.74) (1.26)
11/30/1995 7.93 (.73) (1.03)
Class 2
06/30/2000 1.34 (.56) (.49)
12/31/1999 .94 (.16) (6.38)
11/30/1999 4.53 (.56) (6.00)
11/30/1998 5.18 (.59) (3.83)
11/30/1997 6.19 (.35) -
Asset Allocation Fund
Class 1
06/30/2000 $(.08) $(.05) -
12/31/1999 .20 (.14) $(1.02)
11/30/1999 1.18 (.57) (1.15)
11/30/1998 1.85 (.57) (.87)
11/30/1997 2.49 (.54) (.97)
11/30/1996 2.42 (.53) (.48)
11/30/1995 3.19 (.50) (.17)
Class 2
06/30/2000 (.09) (.05) -
12/31/1999 .19 (.13) (1.02)
11/30/1999 1.14 (.53) (1.15)
11/30/1998 1.81 (.53) (.87)
11/30/1997 1.98 (.26) -
Bond Fund (8)
Class 1
06/30/2000 $.17 $(.07) -
12/31/1999 .06 (.18) -
11/30/1999 .23 (.69) $(.05)
11/30/1998 .52 (.65) (.12)
11/30/1997 .93 (.62) -
11/30/1996 .56 (.25) -
Class 2
06/30/2000 .16 (.07) -
12/31/1999 .06 (.17) -
11/30/1999 .20 (.66) (.05)
11/30/1998 .50 (.63) (.12)
11/30/1997 .81 (.31) -
High-Yield Bond Fund
Class 1
06/30/2000 - $(.11) -
12/31/1999 $.23 (.29) -
11/30/1999 .54 (1.31) $(.19)
11/30/1998 .22 (1.25) (.16)
11/30/1997 1.72 (1.27) -
11/30/1996 1.82 (1.30) -
11/30/1995 2.42 (1.32) -
Class 2
06/30/2000 (.02) (.11) -
12/31/1999 .23 (.28) -
11/30/1999 .51 (1.28) (.19)
11/30/1998 .19 (1.22) (.16)
11/30/1997 1.30 (.63) -
U.S. Government/AAA-Rated Securities Fund
Class 1
06/30/2000 $.40 $(.06) -
12/31/1999 (.04) (.18) -
11/30/1999 .02 (.67) -
11/30/1998 .94 (.69) -
11/30/1997 .69 (.80) -
11/30/1996 .59 (.82) -
11/30/1995 1.53 (.81) -
Class 2
06/30/2000 .38 (.06) -
12/31/1999 (.05) (.17) -
11/30/1999 .01 (.65) -
11/30/1998 .92 (.67) -
11/30/1997 .71 (.37) -
Cash Management Fund
Class 1
06/30/2000 $.31 $(.06) -
12/31/1999 .05 (.13) -
11/30/1999 .51 (.51) -
11/30/1998 .56 (.56) -
11/30/1997 .56 (.55) -
11/30/1996 .55 (.54) -
11/30/1995 .61 (.59) -
Class 2
06/30/2000 .30 (.06) -
12/31/1999 .05 (.13) -
11/30/1999 .48 (.48) -
11/30/1998 .53 (.53) -
11/30/1997 .31 (.26) -
Net asset
Total value,
Period distri- end of Total
Ended butions period return
Global Growth Fund (2)
Class 1
06/30/2000 $(.21) $21.68 2.14%
12/31/1999 (1.01) 21.42 18.53
11/30/1999 (.56) 18.99 51.89
11/30/1998 (.16) 13.02 24.26
11/30/1997 (.03) 10.62 6.45
Class 2
06/30/2000 (.21) 21.65 2.02
12/31/1999 (1.00) 21.41 18.47
11/30/1999 (.52) 18.98 51.45
11/30/1998 (.13) 13.02 24.06
11/30/1997 (.02) 10.61 6.28
Global Small Capitalization Fund (6)
Class 1
06/30/2000 $(.37) $17.49 2.47%
12/31/1999 (1.71) 17.37 11.70
11/30/1999 (.21) 17.16 92.15
11/30/1998 (.04) 9.11 (8.31)
Class 2
06/30/2000 (.36) 17.46 2.35
12/31/1999 (1.70) 17.36 11.69
11/30/1999 (.19) 17.14 91.86
11/30/1998 (.03) 9.10 (8.49)
Growth Fund
Class 1
06/30/2000 $(.49) $81.16 15.61%
12/31/1999 (11.15) 70.62 14.45
11/30/1999 (8.25) 72.12 52.55
11/30/1998 (6.31) 54.91 25.27
11/30/1997 (3.29) 50.12 24.57
11/30/1996 (3.69) 43.53 14.32
11/30/1995 (1.09) 41.81 35.35
Class 2
06/30/2000 (.49) 81.01 15.48
12/31/1999 (11.10) 70.57 14.44
11/30/1999 (8.15) 72.04 52.22
11/30/1998 (6.19) 54.88 24.97
11/30/1997 (.12) 50.09 23.73
International Fund
Class 1
06/30/2000 $(.43) $26.33 (.09)%
12/31/1999 (2.69) 26.74 18.18
11/30/1999 (.61) 25.08 56.48
11/30/1998 (1.93) 16.57 16.94
11/30/1997 (.89) 16.07 9.52
11/30/1996 (.60) 15.53 16.66
11/30/1995 (.74) 13.89 10.78
Class 2
06/30/2000 (.42) 26.30 (.18)
12/31/1999 (2.68) 26.73 18.16
11/30/1999 (.57) 25.07 56.16
11/30/1998 (1.89) 16.56 16.63
11/30/1997 (.16) 16.06 2.20
New World Fund (7)
Class 1
06/30/2000 $(.04) $11.55 (1.57)%
12/31/1999 (.05) 11.77 11.88
11/30/1999 (.02) 10.56 5.87
Class 2
06/30/2000 (.04) 11.54 (1.66)
12/31/1999 (.05) 11.77 11.87
11/30/1999 (.02) 10.55 5.71
Growth Income Fund
Class 1
06/30/2000 $(1.11) $33.41 2.65%
12/31/1999 (6.56) 33.08 3.21
11/30/1999 (6.66) 38.70 12.86
11/30/1998 (4.51) 40.73 14.77
11/30/1997 (3.27) 39.97 22.92
11/30/1996 (2.00) 35.73 21.02
11/30/1995 (1.76) 31.47 33.14
Class 2
06/30/2000 (1.05) 33.36 2.51
12/31/1999 (6.54) 33.07 3.19
11/30/1999 (6.56) 38.67 12.59
11/30/1998 (4.42) 40.70 14.49
11/30/1997 (.35) 39.94 18.18
Asset Allocation Fund
Class 1
06/30/2000 $(.05) $14.94 (.54)%
12/31/1999 (1.16) 15.07 1.45
11/30/1999 (1.72) 16.03 7.65
11/30/1998 (1.44) 16.57 12.32
11/30/1997 (1.51) 16.16 17.90
11/30/1996 (1.01) 15.18 18.65
11/30/1995 (.67) 13.77 29.45
Class 2
06/30/2000 (.05) 14.92 (.63)
12/31/1999 (1.15) 15.06 1.42
11/30/1999 (1.68) 16.02 7.39
11/30/1998 (1.40) 16.56 12.05
11/30/1997 (.26) 16.15 13.80
Bond Fund (8)
Class 1
06/30/2000 $(.07) $9.84 1.71%
12/31/1999 (.18) 9.74 .61
11/30/1999 (.74) 9.86 2.33
11/30/1998 (.77) 10.37 5.12
11/30/1997 (.62) 10.62 9.36
11/30/1996 (.25) 10.31 5.74
Class 2
06/30/2000 (.07) 9.83 1.58
12/31/1999 (.17) 9.74 .59
11/30/1999 (.71) 9.85 2.07
11/30/1998 (.75) 10.36 4.85
11/30/1997 (.31) 10.61 8.09
High-Yield Bond Fund
Class 1
06/30/2000 $(.11) $12.64 (.01)%
12/31/1999 (.29) 12.75 1.83
11/30/1999 (1.50) 12.81 4.22
11/30/1998 (1.41) 13.77 1.44
11/30/1997 (1.27) 14.96 12.45
11/30/1996 (1.30) 14.51 13.75
11/30/1995 (1.32) 13.99 19.81
Class 2
06/30/2000 (.11) 12.62 (.18)
12/31/1999 (.28) 12.75 1.81
11/30/1999 (1.47) 12.80 3.96
11/30/1998 (1.38) 13.76 1.18
11/30/1997 (.63) 14.95 9.20
U.S. Government/AAA-Rated Securities Fund
Class 1
06/30/2000 $(.06) $10.90 3.79%
12/31/1999 (.18) 10.56 (.41)
11/30/1999 (.67) 10.78 .24
11/30/1998 (.69) 11.43 8.72
11/30/1997 (.80) 11.18 6.49
11/30/1996 (.82) 11.29 5.49
11/30/1995 (.81) 11.52 14.73
Class 2
06/30/2000 (.06) 10.88 3.58
12/31/1999 (.17) 10.56 (.43)
11/30/1999 (.65) 10.78 .08
11/30/1998 (.67) 11.42 8.46
11/30/1997 (.37) 11.17 6.65
Cash Management Fund
Class 1
06/30/2000 $(.06) $11.30 2.85%
12/31/1999 (.13) 11.05 .46
11/30/1999 (.51) 11.13 4.73
11/30/1998 (.56) 11.13 5.17
11/30/1997 (.55) 11.13 5.21
11/30/1996 (.54) 11.12 5.09
11/30/1995 (.59) 11.11 5.65
Class 2
06/30/2000 (.06) 11.28 2.73
12/31/1999 (.13) 11.04 .43
11/30/1999 (.48) 11.12 4.47
11/30/1998 (.53) 11.12 4.92
11/30/1997 (.26) 11.12 2.87
Ratio
Net assets, Ratio of of net
end of expenses income to
Period period (in to average average
Ended millions) net assets net assets
Global Growth Fund (2)
Class 1
06/30/2000 $ 414 .71% (4) .85% (4)
12/31/1999 327 .06 .06
11/30/1999 272 .72 1.01
11/30/1998 132 .75 1.14
11/30/1997 80 .44 .80
Class 2
06/30/2000 562 .95 (4) .60 (4)
12/31/1999 399 .08 .04
11/30/1999 316 .96 .77
11/30/1998 124 1.00 .87
11/30/1997 46 .57 .56
Global Small Capitalization Fund (6)
Class 1
06/30/2000 $ 286 .85% (4) .61% (4)
12/31/1999 178 .07 -
11/30/1999 150 .82 .53
11/30/1998 55 .51 .86
Class 2
06/30/2000 210 1.10 (4) .37 (4)
12/31/1999 111 .09 -
11/30/1999 88 1.06 .25
11/30/1998 17 .64 .63
Growth Fund
Class 1
06/30/2000 $ 9,076 .38% (4) .36% (4)
12/31/1999 8,224 .03 .01
11/30/1999 7,270 .39 .19
11/30/1998 5,313 .41 .38
11/30/1997 4,671 .42 .59
11/30/1996 3,860 .44 .61
11/30/1995 3,154 .47 .92
Class 2
06/30/2000 1,835 .63 (4) .12 (4)
12/31/1999 1,149 .05 -
11/30/1999 937 .64 -
11/30/1998 310 .66 .15
11/30/1997 75 .37 .08
International Fund
Class 1
06/30/2000 $ 3,900 .59% (4) .64% (4)
12/31/1999 4,113 .05 .03
11/30/1999 3,526 .61 1.18
11/30/1998 2,593 .66 1.36
11/30/1997 2,612 .67 1.56
11/30/1996 2,370 .69 1.99
11/30/1995 1,703 .75 2.64
Class 2
06/30/2000 555 .84 (4) .43 (4)
12/31/1999 391 .07 .01
11/30/1999 311 .85 .84
11/30/1998 126 .91 1.03
11/30/1997 48 .53 .34
New World Fund (7)
Class 1
06/30/2000 $ 58 .93% (4) 2.31% (4)
12/31/1999 45 .08 .18
11/30/1999 37 .43 1.02
Class 2
06/30/2000 83 1.17 (4) 2.02 (4)
12/31/1999 38 .10 .16
11/30/1999 28 .57 .95
Growth Income Fund
Class 1
06/30/2000 $ 6,203 .35% (4) 2.13% (4)
12/31/1999 6,632 .03 .18
11/30/1999 6,537 .35 1.75
11/30/1998 6,704 .36 1.74
11/30/1997 6,430 .38 2.01
11/30/1996 5,249 .41 2.26
11/30/1995 3,953 .44 2.70
Class 2
06/30/2000 1,538 .60 (4) 1.90 (4)
12/31/1999 1,203 .05 .16
11/30/1999 1,109 .60 1.50
11/30/1998 564 .61 1.02
11/30/1997 157 .35 .93
Asset Allocation Fund
Class 1
06/30/2000 $ 1,215 .45% (4) 3.71% (4)
12/31/1999 1,387 .04 .31
11/30/1999 1,394 .44 3.50
11/30/1998 1,497 .45 3.63
11/30/1997 1,393 .47 3.63
11/30/1996 1,141 .49 3.88
11/30/1995 870 .52 4.11
Class 2
06/30/2000 380 .70 (4) 3.48 (4)
12/31/1999 341 .06 .29
11/30/1999 321 .69 3.24
11/30/1998 173 .70 3.39
11/30/1997 42 .40 1.81
Bond Fund (8)
Class 1
06/30/2000 $ 152 .53% (4) 7.68% (4)
12/31/1999 169 .05 .65
11/30/1999 173 .53 7.17
11/30/1998 186 .54 6.89
11/30/1997 132 .55 6.63
11/30/1996 77 .52 6.18
Class 2
06/30/2000 114 .78 (4) 7.50 (4)
12/31/1999 85 .07 .63
11/30/1999 80 .78 6.94
11/30/1998 45 .78 6.62
11/30/1997 12 .44 3.50
High-Yield Bond Fund
Class 1
06/30/2000 $ 505 .52% (4) 9.39% (4)
12/31/1999 586 .04 .79
11/30/1999 589 .51 9.13
11/30/1998 715 .51 8.66
11/30/1997 765 .51 8.92
11/30/1996 662 .53 9.27
11/30/1995 534 .54 10.12
Class 2
06/30/2000 108 .77 (4) 9.21 (4)
12/31/1999 99 .07 .77
11/30/1999 95 .76 8.86
11/30/1998 68 .76 8.60
11/30/1997 21 .43 4.92
U.S. Government/AAA-Rated Securities Fund
Class 1
06/30/2000 $ 366 .52% (4) 6.35% (4)
12/31/1999 421 .05 .52
11/30/1999 431 .52 6.06
11/30/1998 537 .51 6.11
11/30/1997 471 .52 6.73
11/30/1996 512 .53 7.33
11/30/1995 542 .54 7.37
Class 2
06/30/2000 50 .77 (4) 6.10 (4)
12/31/1999 48 .07 .51
11/30/1999 47 .77 5.83
11/30/1998 32 .75 5.68
11/30/1997 7 .44 3.45
Cash Management Fund
Class 1
06/30/2000 $ 239 .46% (4) 5.49% (4)
12/31/1999 317 .04 .45
11/30/1999 306 .46 4.65
11/30/1998 250 .46 5.07
11/30/1997 226 .47 4.99
11/30/1996 240 .47 4.94
11/30/1995 193 .49 5.37
Class 2
06/30/2000 42 .71 (4) 5.28 (4)
12/31/1999 48 .06 .42
11/30/1999 48 .71 4.40
11/30/1998 34 .70 4.75
11/30/1997 14 .41 2.80
Portfolio
Period turnover
Ended rate
Global Growth Fund (2)
Class 1
06/30/2000 17.42% (%)
12/31/1999 2.65
11/30/1999 25.84
11/30/1998 25.56
11/30/1997 13.22
Class 2
06/30/2000 17.42 (5)
12/31/1999 2.65
11/30/1999 25.84
11/30/1998 25.56
11/30/1997 13.22
Global Small Capitalization Fund (6)
Class 1
06/30/2000 29.04% (5)
12/31/1999 6.65
11/30/1999 80.55
11/30/1998 28.20
Class 2
06/30/2000 29.04 (5)
12/31/1999 6.65
11/30/1999 80.55
11/30/1998 28.20
Growth Fund
Class 1
06/30/2000 19.87% (5)
12/31/1999 2.55
11/30/1999 36.81
11/30/1998 49.91
11/30/1997 45.14
11/30/1996 30.88
11/30/1995 35.47
Class 2
06/30/2000 19.87 (5)
12/31/1999 2.55
11/30/1999 36.81
11/30/1998 49.91
11/30/1997 45.14
International Fund
Class 1
06/30/2000 16.40% (5)
12/31/1999 1.45
11/30/1999 41.99
11/30/1998 34.08
11/30/1997 50.12
11/30/1996 32.08
11/30/1995 24.66
Class 2
06/30/2000 16.40 (5)
12/31/1999 1.45
11/30/1999 41.99
11/30/1998 34.08
11/30/1997 50.12
New World Fund (7)
Class 1
06/30/2000 18.10% (5)
12/31/1999 2.57
11/30/1999 .81
Class 2
06/30/2000 18.10 (5)
12/31/1999 2.57
11/30/1999 .81
Growth Income Fund
Class 1
06/30/2000 23.19% (5)
12/31/1999 2.69
11/30/1999 40.63
11/30/1998 42.72
11/30/1997 37.55
11/30/1996 31.27
11/30/1995 26.91
Class 2
06/30/2000 23.19 (5)
12/31/1999 2.69
11/30/1999 40.63
11/30/1998 42.72
11/30/1997 37.55
Asset Allocation Fund
Class 1
06/30/2000 18.48% (5)
12/31/1999 1.42
11/30/1999 36.27
11/30/1998 27.97
11/30/1997 34.14
11/30/1996 50.62
11/30/1995 39.89
Class 2
06/30/2000 18.48 (5)
12/31/1999 1.42
11/30/1999 36.27
11/30/1998 27.97
11/30/1997 34.14
Bond Fund (8)
Class 1
06/30/2000 33.57% (5)
12/31/1999 5.48
11/30/1999 38.22
11/30/1998 61.54
11/30/1997 52.93
11/30/1996 32.83
Class 2
06/30/2000 33.57 (5)
12/31/1999 5.48
11/30/1999 38.22
11/30/1998 61.54
11/30/1997 52.93
High-Yield Bond Fund
Class 1
06/30/2000 21.35% (4)
12/31/1999 1.36
11/30/1999 30.72
11/30/1998 65.80
11/30/1997 50.22
11/30/1996 44.81
11/30/1995 31.73
Class 2
06/30/2000 21.35 (5)
12/31/1999 1.36
11/30/1999 30.72
11/30/1998 65.80
11/30/1997 50.22
U.S. Government/AAA-Rated Securities Fund
Class 1
06/30/2000 28.83% (5)
12/31/1999 1.86
11/30/1999 58.30
11/30/1998 89.25
11/30/1997 53.80
11/30/1996 30.45
11/30/1995 30.11
Class 2
06/30/2000 28.83 (5)
12/31/1999 1.86
11/30/1999 58.30
11/30/1998 89.25
11/30/1997 53.80
Cash Management Fund
Class 1
06/30/2000 -
12/31/1999 -
11/30/1999 -
11/30/1998 -
11/30/1997 -
11/30/1996 -
11/30/1995 -
Class 2
06/30/2000 -
12/31/1999 -
11/30/1999 -
11/30/1998 -
11/30/1997 -
1 The periods ended 1995 through 1999
represent the fiscal years ended November 30
and the one month ended December 31.
The periods ended 2000 represent the
six month period ended June 30 (unaudited).
Class 2 shares were not offered before April 30,
1997. Results for such periods are based on
activity during the period and thus are not
representative of a full
year. Total Returns exclude all sales charges.
2 Commenced operations
April 30, 1997.
3 Based on Average shares outstanding.
4 Annualized.
5 Represents portfolio turnover rate
(equivalent for all share classes) for the
six months ended June 30, 2000.
6 Commenced operations
April 30, 1998.
7 Commenced operations
June 17, 1999.
8 Commenced operations
January 2, 1996.
See Notes to Financial Statements
</TABLE>
Results of Meeting of Shareholders Held June 20, 2000/1/
Class 1 shares outstanding on April 14, 2000 698,967,167
Class 2 shares outstanding on April 14, 2000 171,403,624
Total shares voting on June 20, 2000 869,365,551 (99.9%)
Proposal 1
Election of Trustees
<TABLE>
<CAPTION>
Percent of Percent of
Votes Shares Votes Shares
Trustee For Voting For Withheld Withheld
<S> <C> <C> <C> <C>
Lee A. Ault III 860,848,744 99.0% 8,516,807 1.0%
H. Frederick Christie 858,575,110 98.8 10,790,441 1.2
Joe E. Davis 860,507,400 99.0 8,858,151 1.0
James K. Dunton 860,941,871 99.0 8,423,680 1.0
Martin Fenton 859,743,757 98.9 9,621,794 1.1
Leonard R. Fuller 859,896,234 98.9 9,469,317 1.1
Mary Myers Kauppila 859,989,940 98.9 9,375,611 1.1
Donald D. O'Neal 860,801,597 99.0 8,563,954 1.0
Kirk P. Pendleton 860,145,657 98.9 9,219,894 1.1
James F. Rothenberg 860,920,859 99.0 8,444,692 1.0
</TABLE>
Proposal 2/2/
Approval of the elimination or revision of certain of the series' fundamental
investment policies:
a) revise and reclassify the restriction regarding purchasing securities of
other investment companies
b) revise and reclassify the restriction regarding purchasing restricted
securities
c) eliminate the restriction regarding pledging assets
Proposal 3
Amendment to the Declaration of Trust to change the name of the series to
American Funds Insurance Series
Proposal 4
Ratification of accountants
<TABLE>
<CAPTION>
Percent Percent Percent of
of of
Votes Shares Votes Shares Shares
For Voting Against Voting Abstentions Abstaining
For Against
<S> <C> <C> <C> <C> <C> <C>
Proposal 2a 818,266,483 97.0% 11,713,746 1.4% 13,603,900 1.6%
2b 818,006,596 97.0 11,584,108 1.4 13,993,425 1.6
2c 840,677,646 96.7 14,140,132 1.6 14,547,773 1.7
Proposal 3 846,521,579 97.4 8,608,060 1.0 14,235,912 1.6
Proposal 4 857,718,109 98.6 2,356,444 0.3 9,290,998 1.1
</TABLE>
/1/Consolidated results; votes were tabulated separately by fund and by class.
/2/Proposals 2a (purchasing securities of other investment companies) and 2b
(restricted securities) did not apply to the Cash Management Fund.
[The American Funds Insurance Series(SM)]
American Funds Insurance Series
Board of Trustees
Lee A. Ault III
Los Angeles, California
Chairman of the Board, In-Q-Tel, Inc.;
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
Joe E. Davis
Encino, California
Private investor; former Chairman of the Board,
Linear Corporation; former President and
Chief Executive Officer,
National Health Enterprises, Inc.
James K. Dunton
Los Angeles, California
President and Chief Executive Officer of the series
Senior Vice President and Director,
Capital Research and Management Company
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 firm)
Mary Myers Kauppila
Boston, Massachusetts
Private investor; former owner and President,
Energy Investment, Inc.
Donald D. O'Neal
San Francisco, California
Executive Vice President of the series
Vice President, Capital Research and
Management Company
Kirk P. Pendleton
Huntingdon Valley, 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
Other Officers
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
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, 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
Custodians of assets
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02105-1713
Chase Manhattan Bank
One Chase Manhattan Plaza
New York, New York 10081-0001
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 Funds Insurance Series
investors, but it may also be used as sales literature when preceded or
accompanied by the current prospectus for American Funds Insurance Series and
the prospectus for the applicable insurance contract, which give details about
charges, expenses, investment objectives and operating policies. If used as
sales material after September 30, 2000, this report must be accompanied by the
Hartford Leaders Quarterly Portfolio Information for the most recently
completed calendar quarter.
Printed on recycled paper
Litho in USA RCG/L/4683
(c)2000 American Funds Distributors, Inc.
Lit. No. VIH-013-0800
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