February 1, 1995
VIA FEDERAL EXPRESS
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Transamerica Life Insurance and Annuity Company and Separate
Account VA-1 of Transamerica Life Insurance and Annuity
Company (File No. 33-10914)
Dear Commissioners:
On behalf of Transamerica Life Insurance and Annuity Company ("Company") and
Transamerica Life Separate Account VA-1, enclosed for filing pursuant to Rule
30b2-1 under the Investment Company Act of 1940 is a copy of the annual report
for the American Funds' American Variable Insurance Series ("Series"). The
Series is the investment fund underlying Separate Account VA-1, which is the
funding medium for Company's Prime Investor variable annuity contracts. This
document is also being transmitted electronically.
This annual report has been transmitted to the Prime Investor contract owners in
accordance with Rule 30d-2 under the Investment Company Act.
If you have any questions about the enclosed filing, please contact the
undersigned at (213) 742-3816.
Sincerely,
Susan Vivino
Paralegal
Enclosures
cc: R. Armstrong
F. Bellamy
R. Fink
American Variable Insurance Series
"All experience is an arch, to build upon." - Henry Adams
Annual Report
for the year ended November 30, 1995
<PAGE>
[begin sidebar]
About our cover: Henry Brooks Adams, the historian and great-grandson of U.S.
President John Adams, noted that "all experience is an arch, to build upon." In
Utah's Arches National Park, Delicate Arch stands firm, as it has for millennia.
As you will see in the feature that begins on page 6, Capital Research and
Management Company, the series' investment adviser, has had decades of
experience building solid long-term investment results. [end sidebar] American
Variable Insurance Series Fund Results at a Glance
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURNS
at fiscal year-end (11/30/95) at calendar year-end (12/31/95)
1 Year 5-Year 10-Year 1 Year 5-Year 10-Year
Average Average Average Average
Annual Annual Annual Annual
Compound Compound Compound Compound
Return Return Return Return
Growth Fund +35.35% +19.05% +17.39% +33.27% +18.13% +16.66%
page 10
International Fund (since +10.78% +11.29% + 9.03%* +12.68% +11.32% + 9.04%*
5/1/90)
page 15
Growth-Income Fund +33.14% +15.94% +14.06% +32.99% +15.35% +13.39%
page 22
Asset Allocation Fund (since +29.45% +13.75% +10.59%* +29.56% +13.52% +10.69%*
8/1/89)
page 28
High-Yield Bond Fund +19.81% +13.57% +12.23% +21.77% +13.53% +12.00%
page 33
U.S. Government/AAA-Rated +14.73% + 8.93% + 8.73% +15.38% + 8.89% + 8.42%
Securities Fund
page 37
Cash Management Fund + 5.65% + 4.21% + 5.69% + 5.55% + 4.17% + 5.68%
page 40
</TABLE>
*Figure reflects average annual return for the lifetime of the fund, which is
shorter than the complete 10-year period.
This table shows the investment results for the funds in American Variable
Insurance Series. The variable annuity and life insurance contracts that use the
series' funds contain certain fees and expenses not reflected here. Investment
results as of November 30, 1995 are through the close of our most recent fiscal
year. Investment results as of December 31, 1995 comply with a Securities and
Exchange Commission requirement to report 1-year, 5-year and 10-year investment
results as of the end of the most recent calendar quarter.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. UNIT PRICE AND RETURN WILL
VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE CONTRACT. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. UNITS ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY, THE U.S. GOVERNMENT,
ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE CORPORATION, OR ANY
OTHER AGENCY, ENTITY OR PERSON.
<PAGE>
DEAR INVESTORS:
Our 1995 fiscal year - representing the 12 months through November 30, 1995 saw
a remarkable turnaround in the U.S. financial markets. An unusual alignment of
economic influences - moderate but steady economic growth, a mild inflation
environment, declining interest rates and rising corporate profits - buoyed
investor confidence and spurred major advances in both stock and bond prices.
The Dow Jones Industrial Average continued its unprecedented climb, surging past
the 5000 mark just nine months after reaching 4000 in February. Bond markets
rallied as well, reversing their pattern from a year earlier.
American Variable Insurance Series, which serves as the underlying investment
vehicle for your contract, benefited from the market's bounty. The value of all
of the funds in the series appreciated in fiscal 1995, most of them
substantially. These gains, along with positive cash flows into the funds,
significantly increased the assets of the series.
The year's results stand in marked contrast to those of fiscal 1994. When we
reported to you last year, the Federal Reserve was in the process of raising the
federal funds rate - the rate that banks charge each other for overnight loans.
Ultimately, it would move from 3% to 6% in seven steps over a 12-month period.
This attempt to temper economic growth and keep inflation low had its desired
effect. The U.S. economy continued to grow, but at a modest pace. The economy's
perceived "soft landing" contributed significantly to the strength of U.S.
financial markets in 1995.
Washington pitched in with good news as well. Investor confidence grew under the
assumption that the new Republican Congress would continue to slow the growth of
federal spending, and that a reduction in the capital gains tax rate could be
expected. As a cautionary note, we would add that should the budget impasse
continue, securities markets could be affected negatively.
Here are brief comments on the investment activities of each of the funds:
THE GROWTH FUND rose 35.4% for the 12 months ended November 30. Many U.S.
corporations posted record earnings over the period, due in part to productivity
gains, technological advances and a wave of restructurings across a number of
industries. At the same time, declining interest rates lowered borrowing costs
for businesses, encouraging them to expand. Electronic technology was one of the
strongest market sectors over the period. It was also the fund's largest area of
concentration. Among the fund's top gainers were Adobe Systems, a developer of
desktop publishing (+104.9%); LSI Logic, a leading manufacturer of integrated
circuits (+95.9%); and semiconductor giant Intel (+93.6%). Media businesses were
strongly represented among our largest holdings as well. Many of these benefited
from merger activity. At the other end of the spectrum, sluggish consumer
spending caused several of our specialty retailer holdings to suffer. Given the
strength of the technology sector, we reduced some of our holdings in that area
during the last half of the year. This raised the fund's cash and equivalents
position slightly, to 17% of assets, which gives us ample buying reserves should
the market experience a correction.
THE INTERNATIONAL FUND posted a gain of 10.8% for fiscal 1995. U.S. financial
markets found themselves a step ahead of their non-U.S. counterparts, many of
which were grappling with the same economic uncertainties experienced here a
year ago. Measured in U.S. dollars, every major international market but
Switzerland lagged the United States. (In local currency, the U.S. market had
the best investment performance of all major world markets.) Stock prices in
Europe, the fund's largest geographic concentration, were lackluster for a
variety of reasons, including higher interest rates as governments there
attempted to keep inflation at bay. As always, the fund's analysts focused on
the long-term prospects of individual companies rather than the short-term
movements of local markets, and several of the fund's largest holdings were also
among the greatest gainers: Orkla, a Norwegian marketer of consumer goods,
posted a gain of 59.8%; British hotelier Forte increased by 41.3%; and ABN AMRO,
the Netherlands' largest banking group, returned 28.7% for the period. On
balance, the fund benefited from the strength in European currencies, while
elsewhere in the world, fluctuations in currency values had a relatively minor
effect on returns. In Japan, the fund's relatively small weighting offered some
protection against a 3.8% decline in stock prices there, caused by a stubborn
recession and a burgeoning bank crisis. Despite a somewhat sluggish 12-month
period, international markets have done very well over longer time periods and
we continue to believe they afford investors attractive opportunities for
growth.
INTERNATIONAL FUND
Where the Fund's Assets Are Invested
(as of 11/30/95)
<TABLE>
<CAPTION>
<S> <C>
ASIA/PACIFIC Percent of
Net Assets
Australia 6.9%
Japan 5.2
Hong Kong 4.5
New Zealand 2.9
Korea 2.6
22.1
EUROPE
United Kingdom 10.8
France 6.6
Sweden 6.4
Netherlands 4.6
Germany 3.7
Switzerland 3.3
Spain 2.8
Italy 2.3
Norway 2.3
Finland 1.9
Denmark 1.2
Belgium 1.1
Ireland 1.0
48.0
THE AMERICAS
Canada 2.0
Mexico 1.7
Brazil 1.6
5.3
OTHER COUNTRIES 3.6
Cash & Equivalents 21.0
Total 100.0%
</TABLE>
THE GROWTH-INCOME FUND increased 33.1% for the year, due in part to the sharp
rebound by companies in interest-rate-sensitive industries. The fund benefited
from its large investments in banking and insurance companies such as Allstate,
which rose 73.5%, and Citicorp, which gained 70.0% for the period. The fund also
had large concentrations in health care, broadcasting & publishing and
telecommunications, and many of the companies in those areas appreciated
considerably. With continuing cash flow in a robust stock market, the fund's net
assets increased 44% in the last 12 months. We used the opportunity to add to
many current holdings, as well as purchase stocks of new companies, including
several in the forest products and energy sectors. All told, we have added 23
companies to the fund's portfolio and eliminated 20 since we last reported to
you six months ago. The fund's invested position was slightly reduced at
year-end. It now holds 17% of its assets in cash and equivalents as a buying
reserve.
THE ASSET ALLOCATION FUND posted a gain of 29.5% for the year. The fund provides
an opportunity to benefit from market cycles in all three major asset classes,
and this year it enjoyed virtually the best of all possible worlds. The fund's
asset mix throughout the year reflected the relative gains in each market. On
November 30, it held 70% in equities and 21% in bonds, with the remainder in
cash and equivalents. The equity portion of the fund, which is similar to a
conservative growth and income fund, concentrated on typically stable industries
such as health care, banking and energy, many of which experienced substantial
increases during the year. Financial services companies did particularly well
and several of the fund's most profitable holdings were banks involved in recent
merger talks. These included First Interstate Bancorp (+90.1%), BankAmerica
(+55.2%) and First Fidelity Bancorporation (+63.1%). On the fixed-income side,
declining longer term interest rates boosted bond prices and contributed
significantly to the fund's investment results.
THE HIGH-YIELD BOND FUND rose 19.8% as the rebound in debt markets helped most
of the fund's holdings recover last year's lost ground. High-yield bonds occupy
a unique position in the fixed-income universe. Many of these issuers are young
growth companies that have not yet achieved a high level of financial strength
or stability. Others are mature companies that, for one reason or another, do
not meet investment-grade standards. As a result, they offer higher yields than
companies with more solid balance sheets and higher cash flows. They are
sensitive not only to interest-rate swings, but also to the rise and fall of a
company's fortunes. In that regard, they share many characteristics with stocks,
and it was no surprise that the current strong stock market created an
attractive environment for high-yield bonds as well. Our ongoing research effort
has helped us uncover promising high-yielding opportunities. At fiscal year-end,
the fund held about 73% of its assets in U.S. corporate bonds, 13% in non-U.S.
securities and 7% in U.S. Treasury securities, with most of the balance in cash
and equivalents.
THE U.S. GOVERNMENT/AAA-RATED SECURITIES FUND rose 14.7%. Roughly one-half of
that amount represents interest income generated by the bonds in the portfolio.
The other half reflects increases in the bonds' prices. (Bond prices tend to
rise when interest rates decline, and vice versa.) Over the past 12 months, we
took several steps to take better advantage of the bond market rally. First, we
increased the fund's U.S. Treasury holdings. These securities tend to do well in
an environment of declining yields because, unlike corporate bonds or mortgage
pass-through securities, they typically cannot be paid off early. Second, we
increased the fund's exposure to the bond market by reducing the cash position
in the latter half of the year. While we believe that the current environment of
moderate growth and low inflation should have positive consequences for
fixed-income issues for some time, we are monitoring developments as they arise.
In the meantime, the fund continues to find attractive investment opportunities
among a variety of top-rated fixed-income obligations.
THE CASH MANAGEMENT FUND had a 5.6% return for the 12 months ended November 30.
Short-term interest rates and money market yields continued to rise at the start
of fiscal 1995. Since then, moderate economic growth, continued low inflation
and a slowdown in consumer spending have led the Federal Reserve to loosen its
hold on short-term credit. The Fed cut the federal funds rate by a quarter of a
percentage point two times in the last six months - once in July and again after
the close of the fiscal year. The fund maintains a high-quality orientation by
investing only in money market instruments carrying the highest credit rating
from Standard & Poor's and Moody's Investors Service, or those determined to be
of comparable quality. At the close of the fiscal year, 94% of the fund's assets
was concentrated in top-quality commercial paper. The fund can be used as a
suitable base from which regular investments can be made into other funds.
As we look ahead to the coming year, economic prospects look bright. Of course,
while years like the one just past are always welcome, investors would do well
to remember that financial markets can - and do - move in both directions. In
the meantime, we remain committed to helping you achieve your long-term goals by
uncovering promising investment opportunities as they arise. On the following
pages, we invite you to learn a little bit about how the series' investment
adviser goes about looking for those opportunities.
We look forward to reporting to you again in six months.
Cordially,
/S/Thomas E. Terry
Chairman of the Board
American Variable Insurance Series
/S/James F. Rothenberg
President
American Variable Insurance Series
January 12, 1996
[begin sidebar]
American Variable Insurance Series is pleased to offer a new investment option
beginning January 2, 1996. The Bond Fund provides investors with an opportunity
to participate in virtually all types of debt markets. Although the fund will
maintain a quality orientation, it has the flexibility to invest in a wide
spectrum of fixed-income obligations to enhance returns. These include non-U.S.
and lower rated bonds, as well as government and corporate bonds and
mortgage-backed securities. The fund will be managed by Capital Research and
Management Company, the investment adviser for all of the funds in American
Variable Insurance Series. Please see your financial adviser for more
information about this fund and its availability. [end sidebar] HOW A $10,000
INVESTMENT HAS GROWN The charts at right show the growth of a $10,000 investment
over the lifetimes of each of the investment portfolios in American Variable
Insurance Series (with the exception of the Cash Management Fund, which is
managed to provide preservation of principal). The tables below the charts show
the average annual compound returns on an investment over various periods. The
funds in American Variable Insurance Series have no sales charges. However, the
variable annuity and life insurance contracts that use the series' funds involve
certain fees and expenses not reflected here.
INVESTMENTS PRIMARILY IN STOCKS
GROWTH FUND
$57,940 Growth Fund
$57,739 S&P 500 Composite Index
$15,074 Consumer Price Index
<TABLE>
<CAPTION>
<S> <C> <C>
ENDED ENDED 12/31/95
11/30/95
One Year +35.35% +33.27%
Five Years +19.05% +18.13%
10 Years +17.39% +16.66%
Lifetime +16.04% +15.81%
(since 2/8/84)
</TABLE>
INVESTMENTS IN BOTH STOCKS AND BONDS
ASSET ALLOCATION FUND
The indexes are unmanaged and do not reflect sales charges, commissions or
expenses.
$21,273 S&P 500 Composite Index
$18,915 Asset Allocation Fund
$17,432 Salomon Bros. BIG Index/2/
$12,347 Consumer Price Index
<TABLE>
<CAPTION>
<S> <C> <C>
ENDED ENDED
11/30/95 12/31/95
One Year +29.45% +29.56%
Five Years +13.75% +13.52%
Lifetime +10.59% +10.69%
(since 8/1/89)
</TABLE>
INVESTMENTS PRIMARILY IN STOCKS
INTERNATIONAL FUND
$16,202 International Fund
$14,724 MSCI EAFE Index/1/
$11,906 Consumer Price Index
<TABLE>
<CAPTION>
<S> <C> <C>
ENDED ENDED
11/30/95 12/31/95
One Year +10.78% +12.68%
Five Years +11.29% +11.32%
Lifetime + 9.03% + 9.04%
(since 5/1/90)
</TABLE>
INVESTMENTS PRIMARILY IN BONDS
HIGH-YIELD BOND FUND
$42,307 High-Yield Bond Fund
$40, 806 Salomon Bros. High-Yield Index
$34,290 Salomon Bros. BIG Index/2/
$15,074 Consumer Price Index
<TABLE>
<CAPTION>
<S> <C> <C>
ENDED ENDED
11/30/95 12/31/95
One Year +19.81% +21.77%
Five Years +13.57% +13.53%
10 Years +12.23% +12.00%
Lifetime +12.99% +13.06%
(since 2/8/84)
</TABLE>
INVESTMENTS PRIMARILY IN STOCKS
GROWTH-INCOME FUND
$57,739 S&P 500 Composite Index
$52,279 Growth-Income Fund
$15,074 Consumer Price Index
<TABLE>
<CAPTION>
<S> <C> <C>
ENDED ENDED
11/30/95 12/31/95
One Year +33.14% +32.99%
Five Years +15.94% +15.35%
10 Years +14.06% +13.39%
Lifetime +15.04% +15.01%
(since 2/8/84)
</TABLE>
INVESTMENTS PRIMARILY IN BONDS
U.S. GOVERNMENT/AAA-RATED SECURITIES FUND
$25,174 Salomon Bros. Treasury & Mortgage Index
$23,165 U.S. Govt./AAA-Rated Securities Fund
$14,092 Consumer Price Index
<TABLE>
<CAPTION>
<S> <C> <C>
ENDED ENDED
11/30/95 12/31/95
One Year +14.73% +15.38%
Five Years + 8.93% + 8.89%
10 Years3 + 8.73% + 8.42%
</TABLE>
/1/ Morgan Stanley Capital International EAFE(R) (Europe, Australasia, Far
East) Index
/2/Salomon Brothers Broad Investment-Grade (BIG) Bond Index
/3/The fund's lifetime is 10 years.
<PAGE>
CAPITAL RESEARCH AND MANAGEMENT COMPANY:
AN ARCH TO BUILD UPON
HOW YOUR INVESTMENT ADVISER PUTS EXPERIENCE TO WORK
Any architect will tell you that whether you're adding a room to your house or
erecting a 50-story office tower, you must start with a stable foundation.
Without the proper support, your structure may lean to one side or you may end
up with a building that crumbles under its own weight.
Like any building, a long-term investment portfolio needs a steady base to help
it grow. The funds in American Variable Insurance Series are constructed on a
solid foundation: the experienced professional management of their investment
adviser, Capital Research and Management Company (CRMC).
With roots reaching back to 1931, the Capital organization, parent to CRMC, has
provided prudent investment management for more than 60 years. In addition to
advising American Variable Insurance Series, CRMC is the investment adviser for
the 28 mutual funds in The American Funds Group, one of the nation's largest
mutual fund families. CRMC's building blocks have been a time-tested investment
philosophy, an extensive research network and talented professionals with
investment management expertise. This broad base of experience and knowledge has
helped Capital Research and Management Company achieve a history of consistently
superior long-term investment results for its investors.
INTENSIVE RESEARCH: CRMC'S WORLD OF EXPERIENCE
There are many things that can affect the value of an investment - changes in a
company's business environment, economic policies, currency fluctuations,
political events, even accounting standards, to name a few. Making an investment
decision requires a global perspective on economies, markets and companies. This
is true whether that investment is made abroad or right here in the United
States.
[begin chart]
CRMC'S GLOBAL REACH*
1,175 research calls in Europe 5,010 research calls in North America 118
research calls in Africa 442 research calls in Latin America 64 research calls
in the Middle East 2,642 research calls in Asia/Pacific Rim 228 research calls
in Eastern Europe *As of 12/31/94 [end chart]
CRMC set up its first research base outside the United States in the early
1960s, making it one of the first U.S. money managers to establish an
international presence. What started as a single office in Geneva three decades
ago has grown into a sophisticated research network operating out of nine
offices on three continents. Each year, CRMC's research analysts - who hail from
diverse cultural, business and national backgrounds - call on thousands of
companies, government officials and other experts around the world in an effort
to gain insight into the global marketplace and search for attractive investment
opportunities.
CRMC's research effort is also supported by one of the world's largest
databases, developed by one of Capital's own subsidiaries. The Morgan Stanley
Capital International World, EAFE(R) (Europe, Australasia, Far East) and
emerging markets indexes are produced by the Capital organization. They provide
an industry-wide standard for statistical information on markets around the
world. (The commercial rights were sold to Morgan Stanley in 1986.) The widely
quoted periodical, Morgan Stanley Capital International Perspective, also
compiled by Capital, provides information on more than 2,700 securities in 22
countries.
A UNIQUE SYSTEM FOR MANAGING ASSETS
A cornerstone of CRMC's investment management process is the multiple portfolio
counselor system. Under this method, which has been employed since 1958, the
assets of each fund are divided among several portfolio counselors, while
another segment is assigned to Capital's research analysts. Portfolio counselors
are "generalists" who select from a wide range of investments, while research
analysts are "specialists" who buy and sell securities among the industry
sectors they follow.
Each portion of the fund is managed independently, as though it constituted an
entire fund. An investment committee, meanwhile, reviews transactions to ensure
they're in keeping with the fund's objectives.
HOW ONE FUND WORKS: THE PORTFOLIO COUNSELORS OF THE GROWTH-INCOME FUND
RESEARCH ANALYSTS
Jim Dunton
Claudia Huntington
Dina Perry
Jim Drasdo
Bob O'Donnell
[Photo Caption]
CRMC's building blocks have been a time-tested investment philosophy, an
extensive research network and talented professionals with exceptional
investment management expertise.
[End Photo Caption]
The Growth-Income Fund has five portfolio counselors, each of whom independently
manages a portion of the fund's assets. A sixth segment is managed by a group of
research analysts.
The illustration on the left shows how one fund works. The Growth-Income Fund
has five portfolio counselors. Among them, these investment professionals have
91 years of experience with the Capital organization, providing a wealth of
knowledge and skill that few organizations can match. Instead of investing in a
specific industry or geographic region, each portfolio counselor assembles a
portfolio of securities that resembles an entire fund. A sixth segment of the
fund's portfolio is managed by a group of research analysts, who can invest in
securities in industries or regions they follow.
The independence fostered by this system means that portfolio counselors can
focus on those investments in which they have the greatest conviction. Diversity
of opinion, untempered by the need for consensus, is perhaps the system's
greatest strength. It has ensured that investors have the opportunity to benefit
from the viewpoints and perspectives of a range of professionals with differing
approaches and styles. Different investment styles have tended to smooth out the
peaks and valleys of investing: The funds in American Variable Insurance Series
have seldom had the best - or the worst - results in any given year, because
when one counselor has had a poor year, his or her results have usually been
offset by the success of one or more other counselors.
The multiple portfolio counselor system was designed to produce consistently
strong long-term investment results, but it has also fostered an additional
benefit. By not relying on a single manager, it has brought remarkable
continuity to the organization's investment management efforts. When one
counselor's responsibilities change, only a portion of the portfolio changes
hands. Smooth and gradual transitions help CRMC's investment approach remain
consistent.
Although each portfolio counselor may take a different approach to investing,
all share a common conviction, and that is to maintain a long-term perspective.
Rather than buy and sell based on short-term market fluctuations, they prefer to
buy good companies at reasonable prices - and hold them for extended periods. A
commitment to a long-term investment approach is another hallmark of Capital
Research and Management Company.
A SEARCH FOR FUNDAMENTAL VALUE
Capital Research and Management Company takes a value-oriented approach to
investing. Instead of following trends, analysts look for individual companies
whose fundamental long-term prospects appear to be better than the market says
they are. Research helps them uncover those opportunities. Before purchasing a
security, an analyst may spend hundreds of hours studying the company or
issuer's financial records, talking and meeting with managers, suppliers,
customers and competitors, all in an effort to determine a company's prospects.
Only then, and only if the price seems reasonable, will he or she recommend that
security.
Research, value, independent thinking: Six decades of investing have taught us
that these fundamentals can provide an arch of experience for building long-term
goals.
[Sidebar]
WHAT DOES AN INVESTMENT ADVISER DO?
Capital Research and Management Company may not be a name you are familiar with,
but as the adviser for all of the funds in the American Variable Insurance
Series, it plays a key role in your variable annuity or variable life insurance
contract. Each fund is a separate, fully managed portfolio of securities with
distinct investment objectives and policies. It is CRMC's job to make investment
decisions on your behalf that are in keeping with those objectives and policies.
[End Sidebar]
<PAGE>
American Variable Insurance Series
GROWTH-INCOME FUND
Investment Portfolio - November 30, 1995
Equity-Type Securities 83.30%
Cash & Equivalents 16.70%
Percent
of Net
LARGEST INDIVIDUAL EQUITY HOLDINGS Assets
AT&T 2.17%
Merck & Co. 1.38
Philip Morris Companies 1.35
Aluminum Co. of America 1.33
Boeing 1.32
WMX Technologies 1.29
Minnesota Mining and Manufacturing 1.26
Potash Corp. of Saskatchewan 1.19
Schering-Plough 1.16
Phillips Petroleum 1.03
<TABLE>
<CAPTION>
Number Market Percent
of Value of Net
Stocks (common and preferred) Shares (000) Assets
<S> <C> <C> <C>
HEALTH & PERSONAL CARE - 7.79%
Merck & Co., Inc. 880,000 $54,450 1.38%
Schering-Plough Corp. 800,000 45,900 1.16
Pfizer Inc 570,000 33,060 .84
American Home Products Corp. 330,000 30,112 .76
Bristol-Myers Squibb Co. 295,000 23,674 .60
Warner-Lambert Co. 260,000 23,205 .59
Eli Lilly and Co. 220,000 21,890 .55
Abbott Laboratories 500,000 20,312 .51
Pharmacia & Upjohn Inc. (formerly Upjohn Co.) 384,250 13,785 .35
Johnson & Johnson 150,000 12,994 .33
Kimberly-Clark Corp. 155,800 11,977 .30
Tambrands Inc. 150,000 7,819 .20
McKesson Corp. 125,000 6,422 .16
Bausch & Lomb Inc. 67,400 2,435 .06
BANKING - 6.64%
Banc One Corp. 666,250 25,401 .64
First Fidelity Bancorporation 300,000 22,012 .56
First Interstate Bancorp 150,000 20,100 .51
BankAmerica Corp. 310,000 19,724 .50
PNC Bank Corp. 636,000 18,603 .47
Boatmen's Bancshares, Inc. 400,000 15,500 .39
SunTrust Banks, Inc. 225,000 15,356 .39
Chase Manhattan Corp. 240,000 14,610 .37
Fleet Financial Group, Inc. 300,000 12,525 .32
First Union Corp. 225,000 12,291 .31
Comerica Inc. 296,000 11,063 .28
KeyCorp 300,000 11,063 .28
Northern Trust Corp. 200,000 10,450 .26
Norwest Corp. 300,000 9,900 .25
Bankers Trust New York Corp. 150,000 9,731 .25
CoreStates Financial Corp 250,000 9,687 .24
Bank of New York Co., Inc. 200,000 9,425 .24
J.P. Morgan & Co. Inc. 100,000 7,850 .20
Citicorp 100,000 7,075 .18
BROADCASTING & PUBLISHING - 5.83%
Capital Cities/ABC, Inc. 320,000 39,560 1.00
Tele-Communications, Inc., Series A, TCI Group/1/ 1,575,000 29,137 .74
E.W. Scripps Co., Class A 630,000 25,594 .65
News Corp. Ltd. (American Depositary Receipts)
(Australia) 800,000 16,800
News Corp. Ltd., preferred shares
(American Depositary Receipts) 400,000 7,550 .61
Time Warner Inc. 592,000 23,680 .60
Viacom Inc./1/ 335,000 16,164 .41
Gannett Co., Inc. 260,000 15,860 .40
Times Mirror Co., Series A 224,220 7,287
Times Mirror Co., preferred equity redemption
cumulative stock, Series B 155,641 4,008 .28
Tele-Communications, Inc., Series A, Liberty
Media Group/1/ 393,750 11,025 .28
U S WEST Media Group/1/ 588,200 10,587 .27
New York Times Co., Class A 344,300 10,157 .26
Tribune Co. 140,000 9,030 .23
Cox Communications, Inc., Class A/1/ 196,892 3,938 .10
TELECOMMUNICATIONS- 5.61%
AT&T Corp. 1,300,000 85,800 2.17
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts)(Mexico) 788,800 26,030 .66
MCI Communications Corp. 859,800 23,000 .58
Sprint Corp. 565,000 22,600 .57
U S WEST Communications, Inc. 588,200 18,381 .47
AirTouch Communications/1/ 449,621 13,095 .33
Ameritech Corp. 175,000 9,625 .24
Pacific Telesis Group 300,000 9,000 .23
ALLTEL Corp. 300,000 8,850 .22
SBC Communications Inc. 100,000 5,400 .14
(formerly Southwestern Bell Corp.)
ENERGY SOURCES - 5.15%
Phillips Petroleum Co. 1,225,000 40,731 1.03
Amoco Corp. 355,000 24,051 .61
Exxon Corp. 305,000 23,600 .60
Valero Energy Corp. 785,000 20,312 .51
Royal Dutch Petroleum Co. (New York Registered
Shares) (Netherlands) 145,000 18,614 .47
Unocal Corp. 650,000 17,469 .44
Texaco Inc. 235,000 17,390 .44
Tosco Corp. 290,000 11,056 .28
Atlantic Richfield Co. 100,000 10,838 .28
Chevron Corp. 200,000 9,875 .25
Murphy Oil Corp. 163,200 6,426 .16
TOTAL, Class B (American Depositary Receipts) 102,454 3,163 .08
(France)
BUSINESS & PUBLIC SERVICES - 4.32%
WMX Technologies, Inc. 1,730,000 51,035 1.29
Dun & Bradstreet Corp. 580,000 36,177 .92
General Motors Corp., Class E 549,500 27,750 .70
Browning-Ferris Industries, Inc. 500,000 15,062 .38
Federal Express Corp./1/ 190,000 14,203 .36
Omnicom Group Inc. 170,000 11,348 .29
Pitney Bowes Inc. 175,000 7,831 .20
Ecolab Inc. 250,000 7,188 .18
CHEMICALS - 3.59%
Monsanto Co. 223,400 25,579 .65
Praxair, Inc. 850,000 24,756 .63
Eastman Chemical Co. 325,000 21,328 .54
E.I. du Pont de Nemours and Co. 275,000 18,287 .46
Dow Chemical Co. 230,000 16,301 .41
Imperial Chemical Industries PLC (American
Depositary Receipts) (United Kingdom) 200,000 9,350 .24
Great Lakes Chemical Corp. 100,000 7,113 .18
Engelhard Corp. 284,400 6,648 .17
PPG Industries, Inc. 140,000 6,353 .16
Betz Laboratories, Inc. 150,000 6,038 .15
MULTI-INDUSTRY - 3.57%
Minnesota Mining and Manufacturing Co. 760,000 49,780 1.26
Harsco Corp. 515,000 30,385 .77
Tenneco Inc. 555,000 26,640 .67
Textron Inc. 240,000 18,390 .47
AlliedSignal Inc. 200,000 9,450 .24
Hanson PLC (American Depositary Receipts)
(United Kingdom) 420,000 6,405 .16
INSURANCE - 3.42%
SAFECO Corp. 525,000 37,275 .94
Allstate Corp. 889,055 36,451 .92
CIGNA Corp. 120,000 13,200 .34
Liberty Corp. 350,000 11,594 .29
St. Paul Companies, Inc. 120,000 6,720 .17
Arthur J. Gallagher & Co. 195,600 6,406 .16
General Re Corp. 40,000 5,985 .15
AMBAC Inc. 129,900 5,732 .15
American General Corp. 120,000 4,065 .10
TIG Holdings, Inc. 150,000 4,050 .10
American International Group, Inc. 41,250 3,702 .10
BEVERAGES & TOBACCO - 3.20%
Philip Morris Companies Inc. 610,000 53,527 1.35
Seagram Co. Ltd. (Canada) 1,050,000 38,325 .97
PepsiCo, Inc. 435,000 24,034 .61
American Brands, Inc. 250,000 10,437 .27
FOREST PRODUCTS & PAPER - 3.19%
Union Camp Corp. 750,000 36,844 .93
ITT Rayonier Inc. 525,000 20,081 .51
International Paper Co. 350,000 13,344 .34
Federal Paper Board Co., Inc. 250,000 13,000 .33
Georgia-Pacific Corp. 150,000 11,662 .29
Weyerhaeuser Co. 250,000 11,313 .28
James River Corp. of Virginia 300,000 9,450 .24
Louisiana-Pacific Corp. 200,000 5,400 .14
Westvaco Corp. 187,500 5,133 .13
AEROSPACE & MILITARY TECHNOLOGY - 3.12%
Boeing Co. 715,000 52,106 1.32
Litton Industries, Inc./1/ 461,200 20,696 .52
General Motors Corp., Class H 370,000 17,575 .45
Sundstrand Corp. 250,000 16,187 .41
United Technologies Corp 160,000 15,000 .38
Coltec Industries Inc./1/ 160,000 1,760 .04
MERCHANDISING - 2.64%
Wal-Mart Stores, Inc. 1,404,000 33,696 .85
Giant Food Inc., Class A 450,000 14,513 .37
Walgreen Co. 480,000 13,980 .35
May Department Stores Co. 300,000 13,088 .33
Sears, Roebuck and Co. 300,000 11,812 .30
J.C. Penney Co., Inc. 200,000 9,375 .24
Gap, Inc. 100,000 4,525 .11
Melville Corp. 112,400 3,498 .09
DATA PROCESSING & REPRODUCTION - 2.14%
International Business Machines Corp. 375,000 36,234 .91
Xerox Corp. 250,000 34,281 .87
Apple Computer, Inc. 280,500 10,694 .27
Novell, Inc./1/ 212,000 3,578 .09
TRANSPORTATION: RAIL & ROAD - 2.03%
Conrail, Inc. 460,000 32,142 .81
Union Pacific Corp. 425,000 28,794 .73
Norfolk Southern Corp. 245,000 19,294 .49
INDUSTRIAL COMPONENTS - 1.96%
Johnson Controls, Inc. 310,900 21,530 .54
Goodyear Tire & Rubber Co. 500,000 21,187 .54
Dana Corp. 581,800 17,018 .43
Rockwell International Corp. 250,000 12,250 .31
TRW Inc. 75,000 5,616 .14
METALS: NONFERROUS - 1.96%
Aluminum Co. of America 900,000 52,650 1.33
Inco Ltd. (Canada) 530,000 18,881 .48
Phelps Dodge Corp. 50,000 3,394 .08
Alumax Inc./1/ 80,000 2,660 .07
FOOD & HOUSEHOLD PRODUCTS - 1.96%
CPC International Inc. 400,000 27,500 .70
ConAgra, Inc. 360,000 14,355 .36
Archer Daniels Midland Co. 700,000 12,075 .31
H.J. Heinz Co. 375,000 11,953 .30
General Mills, Inc. 210,200 11,587 .29
MACHINERY & ENGINEERING - 1.74%
Caterpillar Inc. 300,000 18,413 .46
Deere & Co. 516,600 16,983 .43
Ingersoll-Rand Co. 350,000 13,431 .34
Parker Hannifin Corp. 300,000 11,025 .28
Crompton & Knowles Corp. 700,000 9,100 .23
UTILITIES: ELECTRIC & GAS - 1.59%
Union Electric Co. 450,000 18,057 .46
Pacific Gas and Electric Co. 500,000 13,750 .35
Consolidated Edison Co. of New York, Inc. 350,000 10,106 .25
Entergy Corp. 350,000 9,756 .25
Detroit Edison Co. 200,000 6,525 .16
General Public Utilities Corp. 120,000 3,795 .09
Long Island Lighting Co. 62,200 1,065 .03
MISCELLANEOUS MATERIALS & COMMODITIES - 1.45%
Potash Corp. of Saskatchewan Inc. (Canada) 680,000 47,005 1.19
Cleveland-Cliffs Inc 180,000 7,043 .18
TRINOVA Corp. 100,000 3,075 .08
ELECTRONIC COMPONENTS - 1.41%
Intel Corp. 400,000 24,350 .61
Motorola, Inc. 240,000 14,700 .37
Micron Technology, Inc. 200,000 10,950 .28
Texas Instruments Inc. 100,000 5,787 .15
LEISURE & TOURISM - 1.16%
Walt Disney Co. 585,000 35,173 .89
Marriott International, Inc. 200,000 7,450 .19
Host Marriot Corp./1/ 240,000 3,090 .08
FINANCIAL SERVICES - 1.11%
Household International, Inc. 300,000 18,750 .47
Beneficial Corp. 200,000 10,150 .26
American Express Co. 170,000 7,225 .18
ADVANTA Corp., Class A 100,000 4,150 .10
Capital One Financial Corp. 150,000 3,788 .10
RECREATION & OTHER CONSUMER PRODUCTS - 1.07%
Eastman Kodak Co. 220,000 14,960 .38
American Greetings Corp., Class A 380,000 10,355 .26
Stanley Works 200,000 10,125 .26
Polaroid Corp. 150,000 6,919 .17
AUTOMOBILES - 0.97%
General Motors Corp. 500,000 24,250 .61
Ford Motor Co., Class A 500,000 14,125 .36
ENERGY EQUIPMENT - 0.96%
Western Atlas Inc./1/ 346,800 16,603 .42
Schlumberger Ltd. (Netherlands Antilles) 170,000 10,795 .27
Cooper Industries, Inc. 179,802 6,563 .17
Cooper Cameron Corp./1/ 157,945 4,106 .10
ELECTRICAL & ELECTRONICS - 0.60%
General Electric Co. 350,000 23,537 .60
TRANSPORTATION: AIRLINES - 0.46%
AMR Corp./1/ 175,000 13,409 .34
Delta Air Lines, Inc. 60,000 4,658 .12
APPLIANCES & HOUSEHOLD DURABLES - 0.34%
Corning Inc. 300,000 9,038 .23
LADD Furniture, Inc. 326,466 4,366 .11
TEXTILES & APPAREL - 0.30%
VF Corp. 230,000 11,960 .30
MISCELLANEOUS
Other stocks in initial period of acquisition 73,190 1.85
- -
TOTAL STOCKS (COST: $2,458,738,000) 3,286,346 83.13
- -
Principal
Amount
CONVERTIBLE DEBENTURES (000)
ELECTRONIC COMPONENTS - 0.17%
Seagate Technology 5.00% 2003/2/ $3,280 6,790 .17
- -
TOTAL CONVERTIBLE DEBENTURES (COST: $3,543,000) 6,790 .17
- -
TOTAL EQUITY-TYPE SECURITIES (COST: $2,462,281,000) 3,293,136 83.30
- -
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 15.95%
Xerox Corp. 5.68%-5.70% due 12/5/95-1/18/96 74,100 73,660 1.86
Procter & Gamble Co. 5.65%-5.67% due 12/28/95-1/18/96 63,300 62,901 1.59
Wal-Mart Stores, Inc. 5.68%-5.70% due 12/5-12/15/95 62,200 62,119 1.57
J.C. Penney Funding Corp. 5.68% due 1/18-1/22/96 50,000 49,595 1.25
CIT Group Holdings, Inc. 5.70%-5.75% due 47,200 47,141 1.19
12/1-12/18/95
Pitney Bowes Inc. 5.66%-5.68% due 12/14/95-1/31/96 47,200 46,937 1.19
Pfizer Inc 5.70% due 12/8/95/2/ 45,500 45,442 1.15
Coca-Cola Co. 5.68%-5.70% due 12/13-12/14/95/2/ 44,100 44,006 1.11
Beneficial Corp. 5.69%-5.75% due 12/7/95-1/2/96 44,000 43,872 1.11
AT&T Corp. 5.59%-5.70% due 12/21/95-2/27/96 42,600 42,293 1.07
General Electric Capital Corp. 5.69%-5.70%
due 12/4-12/11/95 34,800 34,761 .88
Motorola, Inc. 5.70% due 12/29/95 30,000 29,862 .76
Sara Lee Corp. 5.67%-5.68% due 12/28-12/29/95 24,100 23,993 .61
National Rural Utilities Cooperative Finance Corp.
5.68% due 1/19/96 18,200 18,058 .46
Nordstrom Credit Inc. 5.70% due 12/26/95 5,900 5,876 .15
- -
TOTAL SHORT-TERM SECURITIES (COST: $630,521,000) 630,516 15.95
- -
TOTAL INVESTMENT SECURITIES (COST: $3,092,802,000) 3,923,652 99.25
Excess of money market account, cash
and receivables over payables 29,617 .75
- -
NET ASSETS $3,953,269 100.00%
============ ========
</TABLE>
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction; resale potential extends only
to qualifed institutional buyers.
See Notes to Financial Statements
Equity-type securities appearing in the portfolio since May 31, 1995
- --------------------------------------------------------------------
AMBAC Archer Daniels Midland Boatmen's Bancshares Chevron Cooper Cameron
CoreStates Financial Ecolab Federal Paper Board Gap General Mills
Georgia-Pacific Great Lakes Chemical International Paper KeyCorp Kimberly-Clark
Liberty Louisiana-Pacific Murphy Oil Polaroid Tambrands U S WEST Media Group
Union Electric Viacom
Equity-type securities eliminated from the portfolio
since May 31, 1995
- -----------------------------------------------------
Baxter International
Bell Atlantic
British Petroleum
CBS
Central and South West
Chubb
First Tennessee National
General Signal
GTE
Hubbell
Huntington Bancshares
Limited
Microsoft
Mobil
Oracle Systems
Signet Banking
Student Loan Marketing
UAL
Wachovia
Wells Fargo
<PAGE>
AMERICAN VARIABLE INSURANCE SERIES GROWTH FUND Investment Portfolio November 30,
1995 EQUITY-TYPE SECURITIES 83.22% CASH & EQUIVALENTS 16.78%
<TABLE>
<CAPTION>
Percent
Of Net
Largest Individual Equity Holdings Assets
- --------------------------------- --------
<S> <C> <C> <C>
Walt Disney 2.72
Intel 2.39
Viacom 2.31
United HealthCare 1.97
LSI Logic 1.89
Adobe Systems 1.81
Capital Cities/ABC 1.67
Tele-Communications, TCI Group 1.67
Turner Broadcasting System 1.66
Silicon Graphics 1.59
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- -------------------------------------------- --------- ------- -------
BROADCASTING & PUBLISHING- 14.05%
Viacom Inc., Class B/1/ 1,513,500 $73,026 2.31%
Capital Cities/ABC, Inc. 427,000 52,788 1.67
Tele-Communications, Inc., Series A, TCI Group/1/ 2,849,950 52,724 1.67
Turner Broadcasting System, Inc., Class B 1,865,100 52,223 1.66
News Corp. Ltd. (American Depositary Receipts)
(Australia) 1,270,000 26,670
News Corp. Ltd., preferred shares (American 1.23
Depositary Receipts) 635,000 11,986
Time Warner Inc. 933,000 37,320 1.18
BHC Communications, Inc., Class A 286,189 25,793 .82
Tele-Communications, Inc., Series A, Liberty
Media Group/1/ 819,187 22,937 .73
LIN Television Corp./1/ 591,300 17,000 .54
Gaylord Entertainment Co., Class A 660,000 16,665 .53
Cablevision Systems Corp., Class A/1/ 240,000 13,320 .42
Comcast Corp., Class A, special stock 500,000 9,875 .31
United International Holdings, Inc., Class A/1/ 685,000 9,590 .30
New York Times Co., Class A 300,000 8,850 .28
Infinity Broadcasting Corp., Class A/1/ 168,750 5,400 .17
Jones Intercable, Inc., Class A/1/ 370,000 4,856 .15
Adelphia Communications Corp., Class A/1/ 350,000 2,625 .08
BUSINESS & PUBLIC SERVICES- 13.82%
United HealthCare Corp. 990,000 62,246 1.97
America Online, Inc./1/ 1,123,800 45,935 1.46
CUC International Inc./1/ 1,207,500 45,885 1.45
Columbia/HCA Healthcare Corp. 665,000 34,331 1.09
(formerly Columbia Healthcare Corp.)
WMX Technologies, Inc. 1,060,000 31,270 .99
FHP International Corp./1/ 960,000 27,840 .88
General Motors Corp., Class E 525,000 26,513 .84
Federal Express Corp./1/ 350,000 26,163 .83
Oxford Health Plans, Inc./1/ 289,500 21,713 .69
ADT Ltd./1/ 1,255,000 17,570 .56
Avery Dennison Corp. 310,000 14,764 .47
PacifiCare Health Systems, Inc., Class B/1/ 165,000 14,314 .45
Value Health, Inc./1/ 500,000 12,563 .40
Ecolab Inc. 350,000 10,063 .31
U.S. Healthcare, Inc. 200,000 9,100 .29
Apria Healthcare Group Inc./1/ 300,000 9,075 .29
Pitney Bowes Inc. 150,000 6,713 .21
H&R Block, Inc. 150,000 6,675 .21
Ceridian Corp./1/ 150,000 6,300 .20
Dun & Bradstreet Corp. 50,000 3,119 .09
BHA Group, Inc., Class A 195,000 2,730 .09
Air & Water Technologies Corp., Class A/1/ 285,000 1,568 .05
DATA PROCESSING & REPRODUCTION- 9.68%
Adobe Systems Inc. 842,100 56,947 1.81
Silicon Graphics, Inc./1/ 1,370,000 50,005 1.59
Digital Equipment Corp./1/ 650,000 38,269 1.21
Sybase, Inc./1/ 1,041,900 36,597 1.16
Oracle Corp.(formerly Oracle Systems Corp.)/1/ 675,000 30,628 .97
Mentor Graphics Corp./1/ 1,000,000 20,125 .64
Compuware Corp./1/ 945,000 19,372 .61
International Business Machines Corp. 175,000 16,909 .54
Autodesk, Inc. 400,000 14,100 .45
Structural Dynamics Research Corp./1/ 475,000 9,678 .31
Sequent Computer Systems, Inc./1/ 350,000 5,556 .18
Tandem Computers Inc./1/ 440,000 5,500 .17
Data General Corp./1/ 100,000 1,212 .04
Tripos, Inc./1/ 19,333 150 .00
ELECTRONIC COMPONENTS- 8.96%
Intel Corp. 1,240,400 75,509 2.39
LSI Logic Corp./1/ 1,420,000 59,462 1.89
Texas Instruments Inc. 570,000 32,989 1.05
Analog Devices, Inc./1/ 600,000 22,200 .70
SCI Systems, Inc./1/ 646,263 21,650 .69
Seagate Technology/1/ 400,000 21,100 .67
National Semiconductor Corp./1/ 945,000 20,199 .64
Park Electrochemical Corp. 250,000 7,594 .24
Newbridge Networks Corp. (Canada)/1/ 150,000 6,394 .20
Rogers Corp./1/ 190,800 4,627 .15
Actel Corp./1/ 300,000 3,975 .13
Motorola, Inc. 42,000 2,572 .08
ANTEC Corp./1/ 150,000 2,175 .07
Advanced Micro Devices, Inc./1/ 100,000 2,050 .06
LEISURE & TOURISM- 5.81%
Walt Disney Co. 1,425,000 85,678 2.72
Harrah's Entertainment, Inc./1/ 825,000 20,522 .65
Mirage Resorts, Inc./1/ 600,000 20,325 .64
Circus Circus Enterprises, Inc./1/ 725,000 20,119 .64
Marriott International, Inc. 500,000 18,625 .59
Host Marriott Corp./1/ 765,000 9,849 .31
Luby's Cafeterias, Inc. 250,000 5,500 .17
Promus Hotel Corp./1/ 126,100 2,790 .09
BANKING- 3.09%
Mercantile Bancorporation Inc. 517,500 23,740 .75
Banc One Corp. 530,750 20,235 .64
Commerce Bancshares, Inc. 408,187 15,256 .48
Northern Trust Corp. 245,000 12,801 .41
BayBanks, Inc. 132,200 10,973 .35
Charter One Financial, Inc. 250,000 8,000 .25
Huntington Bancshares Inc. 273,750 6,673 .21
TELECOMMUNICATIONS- 3.07%
MCI Communications Corp. 1,120,000 29,960 .95
AirTouch Communications/1/ 975,000 28,397 .90
Vanguard Cellular Systems, Inc./1/ 819,200 18,534 .59
Centennial Cellular Corp./1/ 300,000 5,700 .18
United States Cellular Corp./1/ 144,000 5,040 .16
Cellular Communications, Inc., convertible
preferred/1/ 100,704 4,821 .15
Associated Group, Inc., Class A/1/ 93,750 1,687
(formerly Associated Communications Corp.)
Associated Group, Inc., Class B/1/ 93,750 1,687 .11
Cellular Communications of Puerto Rico, Inc./1/ 37,500 1,003 .03
MERCHANDISING- 3.06%
Barnes & Noble, Inc./1/ 625,000 22,969 .73
Wal-Mart Stores, Inc. 950,000 22,800 .72
Home Shopping Network, Inc./1/ 1,300,000 12,187 .39
Staples, Inc./1/ 474,375 12,097 .38
Gap, Inc. 150,000 6,787 .21
Spiegel, Inc., Class A 752,600 6,773 .21
Michaels Stores, Inc./1/ 300,000 4,950 .16
Circuit City Stores, Inc. 150,000 4,350 .14
Toys "R" Us, Inc./1/ 160,000 3,720 .12
INSURANCE- 2.68%
EXEL Ltd. (Incorporated in Bermuda) 405,000 25,262 .80
Transatlantic Holdings, Inc. 270,000 18,563 .59
Progressive Corp. 250,000 11,125 .35
NAC Re Corp. 285,000 9,405 .30
TIG Holdings, Inc. 325,000 8,775 .28
Trenwick Group Inc. 148,400 7,606 .24
NYMAGIC, Inc. 218,300 3,629 .12
RECREATION & OTHER CONSUMER PRODUCTS- 2.12%
Mattel, Inc. 1,277,031 35,757 1.13
Duracell International Inc. 277,000 14,681 .47
Nintendo Co., Ltd. (Japan) 135,000 10,588 .34
Hasbro, Inc. 185,000 5,642 .18
CHEMICALS- 2.09%
Valspar Corp. 660,000 26,978 .86
Great Lakes Chemical Corp. 275,000 19,559 .62
Loctite Corp. 250,000 12,219 .39
Engelhard Corp. 284,400 6,648 .21
Lubrizol Corp. 11,000 315 .01
HEALTH & PERSONAL CARE- 1.86%
Forest Laboratories, Inc./1/ 330,000 14,025 .45
Genetics Institute, Inc./1/ 260,000 11,407 .36
Nellcor Puritan Bennett Inc./1/ 150,000 8,625 .27
(formerly Puritan-Bennett Corp.)
Tambrands Inc. 150,000 7,819 .25
SEQUUS Pharmaceuticals, Inc./1/ 300,000 3,750
(formerly Liposome Technology, Inc.)
SEQUUS Pharmaceuticals, Inc., convertible reset 24,000 984 .16
preferred/1/ /2/
SEQUUS Pharmaceuticals, Inc., warrants expire 1998/1/ 40,416 192
Johnson & Johnson 48,800 4,227 .13
Bausch & Lomb Inc. 100,000 3,612 .11
Alpha-Beta Technology, Inc./1/ 200,000 1,325 .04
Pharmacia & Upjohn, Inc. (formerly Upjohn Co.) 36,250 1,300 .04
Paragon Trade Brands, Inc./1/ 42,600 889 .03
Perrigo Co./1/ 35,000 459 .02
TRANSPORTATION: AIRLINES- 1.83%
Southwest Airlines Co. 1,491,900 37,298 1.18
AMR Corp./1/ 195,000 14,942 .47
Delta Air Lines, Inc. 75,000 5,822 .18
ELECTRICAL & ELECTRONICS- 1.42%
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts) (Sweden) 1,284,500 30,507 .97
Nokia Corp., Class A (American Depositary Receipts)
(Finland) 260,000 14,105 .45
ENERGY EQUIPMENT- 0.84%
Schlumberger Ltd. (Netherlands Antilles) 295,000 18,733 .59
Reading & Bates Corp./1/ 600,000 7,875 .25
TEXTILES & APPAREL- 0.82%
Fruit of the Loom, Inc./1/ 925,000 17,922 .57
Phillips-Van Heusen Corp. 750,000 7,781 .25
BEVERAGES & TOBACCO- 0.71%
Philip Morris Companies Inc. 160,000 14,040 .45
PepsiCo, Inc. 150,000 8,287 .26
ENERGY SOURCES- 0.61%
Murphy Oil Corp. 275,000 10,828 .34
Noble Affiliates, Inc. 226,500 6,144 .19
HS Resources, Inc./1/ 200,000 2,675 .08
FINANCIAL SERVICES- 0.52%
Federal National Mortgage Assn. 150,000 16,425 .52
APPLIANCES & HOUSEHOLD DURABLES- 0.37%
Mohawk Industries, Inc./1/ 650,000 11,538 .37
ELECTRONIC INSTRUMENTS- 0.32%
Applied Materials, Inc./1/ 208,000 10,114 .32
METALS: STEEL- 0.21%
Nucor Corp. 130,000 6,484 .21
MACHINERY & ENGINEERING- 0.16%
Caterpillar Inc. 80,000 4,910 .16
FOREST PRODUCTS & PAPER- 0.13%
ITT Rayonier Inc. 105,000 4,016 .13
CONSTRUCTION & HOUSING- 0.11%
Stone & Webster, Inc. 90,000 3,330 .11
MULTI-INDUSTRY- 0.06%
Textron Inc. 20,000 1,532 .05
Tenneco Inc. 7,900 379 .01
TRANSPORTATION: RAIL & ROAD- 0.04%
Southern Pacific Rail Corp./1/ 46,720 1,115 .04
AEROSPACE & MILITARY TECHNOLOGY- 0.03%
Litton Industries, Inc./1/ 20,000 898 .03
MISCELLANEOUS
Other stocks in initial period of acquisition 133,810 4.24
-------- ------
TOTAL STOCKS (cost: $1,809,811,000) 2,609,066 82.71
-------- ------
Principal
Amount
Convertible Debentures (000)
- ----------------------------- --------- -------- ------
HEALTH & PERSONAL CARE- 0.51%
Omnicare, Inc. 5.75% 2003 $6,350 15,939 .51%
------ ------
TOTAL CONVERTIBLE DEBENTURES (cost: $12,754,000) 15,939 .51
------ ------
TOTAL EQUITY-TYPE SECURITIES (cost: $1,822,565,000) 2,625,005 83.22
Short-Term Securities
- -------------------------------- -------- ------ ------
CORPORATE SHORT-TERM NOTES- 16.68%
Xerox Corp. 5.68%-5.70% due 12/5/95-1/17/96 52,500 52,127 1.65
Wal-Mart Stores, Inc. 5.68%-5.70%
due 12/7-12/15/95 48,655 48,570 1.54
CPC International Inc. 5.64%-5.72%
due 12/5/95-2/20/96/2/ 40,000 39,623 1.26
Beneficial Corp. 5.70%-5.75% due 12/6/95-1/2/96 39,400 39,314 1.25
Pitney Bowes Credit Corp 5.66%-5.67%
due 12/20/95-1/31/96 36,800 36,551 1.16
Procter & Gamble Co. 5.66%-5.67%
due 12/28/95-1/18/96 36,300 36,058 1.14
Hewlett-Packard Co. 5.60%-5.65% due 1/16-2/13/96 34,425 34,136 1.08
AT&T Corp. 5.64%-5.70% due 12/21/95-1/29/96 34,300 34,085 1.08
J.C. Penney Funding Corp. 5.68% due 1/18-1/22/96 33,700 33,431 1.06
National Rural Utilities Cooperative Finance Corp.
5.68%-5.69% due 12/7/95-1/19/96 31,800 31,719 1.01
Coca-Cola Co. 5.68%-5.70% due 12/13-12/14/95/2/ 30,900 30,834 .98
Hershey Foods Corp. 5.70% due 12/20/95 25,000 24,921 .79
Sara Lee Corp. 5.67% due 12/28/95 24,700 24,591 .78
American Express Credit Corp. 5.67%-5.70%
due 12/1/95-1/9/96 21,600 21,531 .68
General Electric Capital Corp. 5.69% due 12/4/95 21,350 21,336 .67
H.J. Heinz Co. 5.70% due 12/18/95-1/12/96 12,400 12,335 .39
Nordstrom Credit Inc. 5.70% due 12/26/95 4,100 4,083 .13
Associates Corp. of North America 5.89% due 12/1/95 1,100 1,100 .03
------- -----
TOTAL SHORT-TERM SECURITIES (cost: $526,349,000) 526,345
------- -----
TOTAL INVESTMENT SECURITIES (cost: $2,348,914,000) 3,151,350
Excess of money market account, cash and
receivables over payables 3,091 .10
------- -----
NET ASSETS $3,154,441 100.00%
======= =====
</TABLE>
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction; resale potential extends only
to qualified institutional buyers.
See Notes to Financial Statements
- ------------------------------------------------
Equity-type securities appearing in the portfolio
since May 31, 1995
- ------------------------------------------------
Apria Healthcare Group
Charter One Financial
Compuware
Ecolab
Fruit of the Loom
Gap
H&R Block
Harrah's Entertainment
HS Resources
Michaels Stores
Nintendo
Nucor
Progressive
Reading & Bates
Wal-Mart Stores
- ----------------------------------------------------
Equity-type securities eliminated from the portfolio
since May 31, 1995
- ----------------------------------------------------
American Re
Apple Computer
Bay Networks
Biogen
CBS
Compaq Computer
Cordis
Cyrix
Dell Computer
Electronic Arts
Humana
Jefferson Smurfit
LIN Broadcasting
Lotus Development
McWhorter
Micron Technology
Microsoft
Ralston Purina
Raychem
ShopKo Stores
Xilinx
<PAGE>
AMERICAN VARIABLE INSURANCE SERIES
HIGH-YIELD BOND FUND
INVESTMENT PORTFOLIO - NOVEMBER 30, 1995 (Unaudited)
U.S. CORPORATE BONDS 72.98%
NON-U.S. CORPORATE BONDS 11.42%
U.S. GOVERNMENT BONDS 7.35%
NON-U.S. GOVERNMENT BONDS 1.83%
CASH & EQUIVALENTS 6.16%
STOCKS .26%
<TABLE>
<CAPTION>
Percent
of Net
LARGEST CORPORATE HOLDINGS Assets
<S> <C> <C> <C>
Container Corp. of America 2.73%
MSF Communications 2.64
California Energy 2.55
Rogers Cantel Mobile Communications 2.52
Thrifty PayLess 2.42
Foodmaker 2.20
Bell Cablemedia 1.99
Marvel Holdings 1.98
Coltec Industries 1.96
Fort Howard Corp. 1.95
Principal Market Percent
Amount Value Of Net
BONDS & NOTES (000) (000) Assets
CELLULAR, PAGING & WIRELESS COMMUNICATIONS - 17.93%
Rogers Cantel Mobile Communications Inc. 10.75% 2001 $10,248 $10,786
Rogers Cantel Mobile Communications Inc. 11.125% 2002 2,500 2,662 2.52%
PanAmSat, LP 9.75% 2000 8,000 8,400
PanAmSat, LP 0%/11.375% 2003 /1/ 2,000 1,610 1.87
Centennial Cellular Corp. 8.875% 2001 10,000 9,775 1.83
MobileMedia Communications, Inc. 0%/10.50% 2003 /1/ 12,750 9,690 1.81
Horizon Cellular Telephone Co., LP
0%/11.375% 2000/1/ 8,500 7,310 1.37
CellNet Data Systems, Inc. 0%/13.00% 2005 /1/ /2/ 14,000 6,897 1.29
Paging Network, Inc. 11.75% 2002 5,800 6,395 1.20
PriCellular Wireless Corp. 0%/12.25% 2003 /1/ 5,500 4,235
PriCellular Wireless Corp. 0%/14.00% 2001 /1/ 1,500 1,305 1.04
NEXTEL Communications, Inc. 0%/11.50% 2003 /1/ /3/ 5,500 3,314
NEXTEL Communications, Inc. 0%/9.75% 2004 /1/ /3/ 4,000 2,070 1.01
CenCall Communications Corp. 0%/10.125% 2004 /1/ 8,000 4,300 .80
Cellular Communications International, Inc., Units 0%
2000 6,500 3,851 .72
Cellular, Inc. 0%/11.75% 2003 /1/ 4,500 3,499 .65
Heartland Wireless Communications, Inc., Units
13.00% 2003 /2/ 3,000 3,405 .64
Comunicacion Celular SA 0%/13.125% 2003 /1/ /2/ 5,000 2,756 .52
Dial Call Communications, Inc. 0%/12.25% 2004 /1/ 5,000 2,725 .51
CAI Wireless Systems, Inc. 12.25% 2002 750 787 .15
FOREST PRODUCTS & PAPER - 8.42%
Container Corp. of America 9.75% 2003 11,750 11,544
Container Corp. of America 11.25% 2004 2,000 2,050
Container Corp. of America 10.75% 2002 1,000 1,012 2.73
Fort Howard Corp. 9.25% 2001 4,250 4,314
Fort Howard Corp. 8.25% 2002 3,000 2,910
Fort Howard Corp. 11.00% 2002 /4/ 1,873 1,950
Fort Howard Corp. 9.00% 2006 1,250 1,219 1.95
Riverwood International Corp. 10.75% 2000 4,000 4,280
Riverwood International Corp. 11.25% 2002 1,000 1,072
Riverwood International Corp. II 10.75% 2000 500 531 1.10
P T Indah Kiat Pulp & Paper Corp. 8.875% 2000 /2/ 4,750 4,418
P T Indah Kiat Pulp & Paper Corp., Series B, 11.875%
2002 1,000 1,005 1.02
Pacific Lumber Co. 10.50% 2003 4,000 3,760 .70
MAXXAM Group Inc. 11.25% 2003 2,000 1,960 .37
P T Pabrik Kertas Tjiwi Kimia 13.25% 2001 1,000 1,072 .20
Repap Wisconsin, Inc. Second Priority 9.875% 2006 1,000 960 .18
P T Inti Indorayon Utama 9.125% 2000 1,000 920 .17
MANUFACTURING & MATERIALS - 8.30%
Coltec Industries Inc. 9.75% 2000 8,450 8,682
Coltec Industries Inc. 9.75% 1999 1,750 1,794 1.96
Kaiser Aluminum & Chemical Corp. 12.75% 2003 5,350 5,858 1.10
Acme Metals Inc. 12.50% 2002 2,500 2,456
Acme Metals Inc. 0%/13.50% 2004 /1/ 3,000 2,340 .90
AK Steel Corp. 10.75% 2004 4,000 4,420 .83
MagneTek, Inc. 10.75% 1998 3,500 3,640 .68
UCAR Global Enterprises Inc. 12.00% 2005 2,865 3,252 .61
Building Materials Corp. of America 0%/11.75% 2004 /1/ 4,500 3,060 .57
Exide Corp. 10.00% 2005 2,750 2,956 .55
Owens-Illinois, Inc. 11.00% 2003 2,500 2,791 .52
Westinghouse Air Brake Co. 9.375% 2005 2,000 2,060 .39
WestPoint Stevens Inc. 8.75% 2001 1,000 1,015 .19
DIVERSIFIED MEDIA & CABLE TELEVISION &
TELECOMMUNICATIONS - 7.63%
MFS Communications Co., Inc. 0%/9.375% 2004 /1/ 18,250 14,121 2.64
Continental Cablevision, Inc. 10.625% 2002 3,500 3,728
Continental Cablevision, Inc. 8.625% 2003 2,000 2,065
Continental Cablevision, Inc. 8.50% 2001 1,500 1,530
Continental Cablevision, Inc. 8.875% 2005 1,000 1,040 1.57
American Media Operations, Inc. 11.625% 2004 6,500 6,598 1.23
IntelCom Group Inc., Units 0%/13.50% 2005 /1/ /2/ 4,000 2,310 .43
Century Communications Corp. 9.50% 2000 2,000 2,050 .38
People's Choice TV Corp., Units 0%/13.125% 2004 /1/ 3,500 1,977 .37
Jones Intercable, Inc. 9.625% 2002 1,500 1,605 .30
ProNet, Inc. 11.875% 2005 1,000 1,080 .20
Telecom Argentina Stet-France Telecom SA 12.00% 2002 1,000 1,046 .20
Comcast Corp. 10.25% 2001 925 994 .19
Storer Communications, Inc. 10.00% 2003 634 638 .12
CABLE & TELEPHONE IN THE UNITED KINGDOM - 6.79%
Bell Cablemedia PLC 0%/11.95% 2004 /1/ 15,500 10,618 1.99
Videotron Holdings PLC 0%/11.125% 2004 /1/ 14,500 9,751 1.82
International CableTel Inc. 0%/10.875% 2003 /1/ 13,250 9,143 1.71
Comcast UK Cable Partners Ltd. 0%/11.20% 2007 /1/ 6,500 3,705 .69
TeleWest PLC 9.625% 2006 2,500 2,497
TeleWest PLC 0%/11.00% 2007 /1/ 1,000 580 .58
ENERGY & RELATED COMPANIES - 5.50%
TransTexas Gas Corp. 11.50% 2002 5,500 5,679 1.06
Flores & Rucks, Inc. 13.50% 2004 4,500 5,085 .95
Wilrig AS 11.25% 2004 4,000 4,360 .82
Triton Energy Corp. 0%/9.75% 2000 /1/ 4,500 4,174 .78
Dual Drilling Co. 9.875% 2004 3,500 3,325 .62
Global Marine, Inc. 12.75% 1999 2,700 2,983 .56
Tuboscope Vetco International Corp. 10.75% 2003 2,000 1,970 .37
Mesa Capital Corp. 0%/12.75% 1998 /1/ 2,000 1,815 .34
LEISURE, TOURISM & RESTAURANTS - 5.29%
Foodmaker, Inc. 9.75% 2002 7,250 6,525
Foodmaker, Inc. 9.25% 1999 5,500 5,225 2.20
Plitt Theatres, Inc. 10.875% 2004 5,750 5,204 .97
Kloster Cruise Ltd. 13.00% 2003 5,750 4,543 .85
Four Seasons Hotels Inc. 9.125% 2000 /2/ 3,500 3,474 .65
Rio Hotel & Casino, Inc. 10.625% 2005 /2/ 1,500 1,500 .28
Station Casinos, Inc. 9.625% 2003 1,100 1,067 .20
Harrah's Jazz Finance Corp. 14.25% 2001 2,500 725 .14
INDEPENDENT POWER PRODUCERS - 3.78%
California Energy Co., Inc. 0%/10.25% 2004 /1/ 14,800 13,616 2.55
Midland Cogeneration Venture LP, Series C-94 10.33%
2002 /4/ 4,178 4,366
Midland Cogeneration Venture LP, Series C-91 10.33%
2002 /4/ 2,151 2,237 1.23
MERCHANDISING - 3.63%
Thrifty PayLess, Inc. 12.25% 2004 6,500 6,939
Thrifty PayLess, Inc. 11.75% 2003 4,500 4,849
Thrifty PayLess, Inc., Units 12.25% 2004 1,000 1,150 2.42
Barnes & Noble, Inc. 11.875% 2003 4,250 4,739 .89
AnnTaylor, Inc. 8.75% 2000 1,500 1,267 .24
Levitz Furniture Corp. 12.375% 1997 500 450 .08
TRANSPORTATION - 3.42%
Delta Air Lines, Inc. 10.375% 2011 2,000 2,438
Delta Air Lines, Inc. 10.00% 2014 /2/ 2,000 2,348
Delta Air Lines, Inc., 1993 pass-through trusts,
Series A2, 10.50% 2016 /4/ 1,000 1,231
Delta Air Lines, Inc. 10.375% 2022 750 938 1.30
Atlas Air, pass-through certificates, 12.25% 2002 /4/ 4,000 4,020 .75
TNT Transport (Europe) PLC TNT (USA) Inc. 11.50% 2004 3,000 3,113 .58
NWA Trust, Class D, 13.875% 2008 1,250 1,447
NWA Inc. 12.092% 2000 /4/ 655 677 .40
Viking Star Shipping Inc. 9.625% 2003 2,000 2,055 .39
BROADCASTING & PUBLISHING - 3.35%
Marvel Holdings Inc., Series B, 0% 1998 14,900 10,579 1.98
Infinity Broadcasting Corp. 10.375% 2002 3,250 3,478 .65
Univision Television Group, Inc. 11.75% 2001 2,500 2,719 .51
Summitt Communications Group, Inc. 10.50% 2005 1,000 1,107 .21
FOOD RETAILING - 3.19%
Stater Bros. Holdings Inc. 11.00% 2001 6,750 6,818 1.27
Star Markets Co., Inc. 13.00% 2004 5,000 5,063 .95
Carr-Gottstein Foods Co. 12.00% 2005 /2/ 4,000 4,010 .75
Safeway Inc. 10.00% 2002 1,000 1,160 .22
BUSINESS & PUBLIC SERVICES - 3.03%
Regency Health Services, Inc. 9.875% 2002 6,000 5,895 1.10
Universal Health Services, Inc. 8.75% 2005 4,000 4,035 .75
Merit Behavioral Care Corp. 11.50% 2005 /2/ 2,500 2,547 .48
ADT Operations, Inc. 9.25% 2003 2,000 2,130 .40
Protection One Alarm Monitoring, Inc.
0%/13.625% 2005/1/ 2,000 1,600 .30
CONSTRUCTION & HOUSING - 1.47%
Triangle Pacific Corp. 10.50% 2003 3,300 3,432 .64
Del Webb Corp. 9.75% 2003 1,500 1,526
Del Webb Corp. 9.00% 2006 750 703 .42
Toll Corp. 9.50% 2003 1,500 1,534
Toll Corp. 10.50% 2002 650 683 .41
BEVERAGES - 1.45%
Dr Pepper Bottling Co. of Texas 10.25% 2000 5,000 5,275 .99
Canandaigua Wine Co., Inc. 8.75% 2003 2,500 2,450 .46
MISCELLANEOUS - 0.84%
Neodata Services, Inc., Series B, 0%/12.00% 2003 /1/ 5,000 4,475 .84
REAL ESTATE - 0.38%
B.F. Saul Real Estate Investment Trust 11.625% 2002 2,000 2,020 .38
NON-U.S. GOVERNMENTS & GOVERNMENTAL
AUTHORITIES - 1.83%
Argentina (Republic of) 6.813% 2005 /5/ 7,000 4,568 .86
United Mexican States Collateralized Eurobond:
Series B, 6.25% 2019 2,000 1,230
Series A, 6.25% 2019 1,500 922 .40
Poland PDI Bonds 3.75% 2014 /5/ 3,000 1,935 .36
Poland Discount Eurobonds 6.875% 2024 /5/ 750 570 .11
Brazil (Federal Republic of) DCB, 6.875% 2012 /5/ 1,000 540 .10
U.S. TREASURY OBLIGATIONS - 7.35%
7.375% 1997 10,000 10,359 1.94
11.625% 2004 6,600 9,255 1.73
7.75% 2001 8,000 8,779 1.64
8.50% 2000 5,000 5,631 1.06
6.875% 1999 5,000 5,223 .98
-------- --------
TOTAL BONDS & NOTES (cost: $495,419,000) 499,934 93.58
-------- -------
NUMBER
OF
SHARES
COMMON STOCKS - 0.26%
CELLNET DATA SYSTEMS, INC., WARRANTS, EXPIRE 2005 /6/ 56,000 1,120 .21
MARRIOTT INTERNATIONAL, INC. 4,512 168 .03
HOST MARRIOTT CORP. /6/ 4,512 58 .01
PROTECTION ONE ALARM MONITORING, INC., WARRANTS, 6,400 35 .01
EXPIRE 2005/2/ /6/
DIAL PAGE, INC., WARRANTS, EXPIRE 1996 /6/ 9,500 - .00
-------- --------
TOTAL COMMON STOCKS (COST: $1,297,000) 1,381 .26
-------- --------
PRINCIPAL
AMOUNT
SHORT-TERM SECURITIES (000)
CORPORATE SHORT-TERM NOTES - 5.87%
PFIZER INC 5.70% DUE 12/8/95 $ 9,500 9,488 1.78
CENTRAL & SOUTH WEST CORP. 5.70% DUE 12/12/95 8,500 8,484 1.59
COCA-COLA CO. 5.67%-5.68% DUE 12/6/95 6,200 6,194 1.16
XEROX CORP. 5.71% DUE 12/8/95 5,000 4,994 .93
ASSOCIATES CORP. OF NORTH AMERICA 5.89% DUE 12/1/95 2,200 2,199 .41
-------- -------
TOTAL SHORT-TERM SECURITIES (COST: $31,359,000) 31,359 5.87
-------- -------
TOTAL INVESTMENT SECURITIES (COST: $528,075,000) 532,674 99.71
EXCESS OF MONEY MARKET ACCOUNT, CASH AND
RECEIVABLES OVER PAYABLES 1,531 .29
--------- -------
NET ASSETS $534,205 100.00%
========= =======
</TABLE>
/1/ REPRESENTS A ZERO COUPON BOND WHICH WILL CONVERT TO A COUPON-BEARING
SECURITY AT A LATER DATE.
/2/ PURCHASED IN A PRIVATE PLACEMENT TRANSACTION; RESALE POTENTIAL EXTENDS ONLY
TO QUALIFIED INSTITUTIONAL BUYERS.
/3/COMPANY HAS ACQUIRED DIAL CALL AND CENCALL, ALSO HELD IN THE PORTFOLIO.
/4/ PASS-THROUGH SECURITIES BACKED BY A POOL OF MORTGAGES OR OTHER LOANS ON
WHICH PRINCIPAL PAYMENTS ARE PERIODICALLY MADE. DUE TO THE POSSIBILITY OF EARLY
PRINCIPAL PAYMENTS, THE EFFECTIVE MATURITY OF THESE SECURITIES IS SHORTER THAN
THE STATED MATURITY.
/5/ COUPON RATE MAY CHANGE PERIODICALLY.
/6/ NON-INCOME-PRODUCING SECURITIES.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
American Variable Insurance Series
Cash Management Fund
Investment Portfolio, November 30, 1995
<TABLE>
<CAPTION>
Principal Market
Amount Value Percent of
Short-Term Securities (000) (000) Net Assets
<S> <C> <C> <C>
Corporate Short-Term Notes - 94.08%
Weyerhaeuser Co. 5.72% due 1/2/96 $7,900 $7,859 4.07%
American Express Credit Corp. 5.70% due 7,800 7,776 4.03
12/6/95-1/11/96
Xerox Corp. 5.67%-5.70% due 12/18/95-1/8/96 7,500 7,465 3.87
Eli Lilly and Co. 5.70% due 12/11/95 7,000 6,988 3.62
John Deere Capital Corp. 5.70% due 1/11/96 6,600 6,556 3.39
Pitney Bowes Credit Corp. 5.67% due 12/18/95 6,500 6,482 3.36
AVCO Financial Services Inc. 5.71% due 12/7/95 6,200 6,193 3.21
H.J. Heinz Co. 5.70% due 1/11/96 6,100 6,059 3.14
Beneficial Corp. 5.70% due 12/12/95 6,000 5,989 3.10
Ameritech Corp. 5.67% due 12/14/95 6,000 5,987 3.10
Commercial Credit Co. 5.72% due 1/9/96 6,000 5,962 3.09
Procter & Gamble Co. 5.66% due 1/10/96 6,000 5,961 3.09
Albertson's Inc. 5.70% due 1/18/96 6,000 5,953 3.08
PepsiCo, Inc. 5.68% due 12/15/95 5,700 5,687 2.94
Associates Corp. of North America 5.89% due 12/1/95 5,400 5,399 2.80
McDonald's Corp. 5.69% due 12/11/95 5,100 5,091 2.64
United Parcel Service of America Inc. 5.70% due 5,000 4,995 2.59
12/6/95
National Rural Utilities Cooperative Finance Corp.
5.68% due 12/8/95 5,000 4,994 2.59
Shell Oil Co. 5.69% due 12/13/95 5,000 4,990 2.58
CIT Group Holdings Inc. 5.70% due 12/14/95 5,000 4,989 2.58
General Electric Capital Corp. 5.70% due 12/15/95 5,000 4,988 2.58
Paccar Financial Corp. 5.71% due 12/20/95 5,000 4,984 2.58
Ford Motor Credit Co. 5.73% due 1/2/96 5,000 4,974 2.58
J.C. Penney Funding Corp. 5.68% due 1/5/96 5,000 4,972 2.57
BellSouth Telecommunications, Inc. 5.71% due 12/7/95 4,600 4,595 2.38
Coca-Cola Co. 5.68% due 12/27/95 4,300 4,282 2.22
Hewlett-Packard Co. 5.67% due 12/21/95 4,100 4,086 2.11
Kimberly-Clark Corp. 5.68% due 12/22/95 4,000 3,986 2.06
Sara Lee Corp. 5.68% due 12/29/95 4,000 3,982 2.06
Nordstrom Credit Inc. 5.69% due 12/11/95 3,800 3,793 1.96
Emerson Electric Co. 5.65% due 12/5/95 3,700 3,697 1.91
Kellogg Co. 5.68% due 12/15/95 3,600 3,591 1.86
Hershey Foods Corp. 5.68% due 1/12/96 3,400 3,377 1.75
Southwestern Bell Telephone Co. 5.68% due 12/4/95 2,600 2,598 1.35
SAFECO Credit Co. Inc. 5.71% due 12/1/95 2,400 2,400 1.24
Federal Agency Discount Notes - 11.20%
Federal Farm Credit Bank 5.65% due 12/18/95 9,500 9,473 4.91
Federal Home Loan Bank 5.66%-5.70% due 12/19-12/26/95 7,600 7,577 3.92
Federal Home Loan Mortgage Corp. 5.68% due 12/20/95 4,600 4,585 2.37
---------- ----------
TOTAL INVESTMENT SECURITIES (cost: $203,315,000) 203,315 105.28
Excess of payables over cash and receivables 10,198 5.28
---------- ----------
NET ASSETS $193,117 100.00$
</TABLE>
See Notes to Financial Statements
American Variable Insurance Series
U.S. Government/AAA-Rated Securities Fund
Investment Portfolio, November 30, 1995
U.S. TREASURY BONDS 50.93%
FEDERAL AGENCY MORTGAGE-RELATED SECURITIES 15.67%
CASH & EQUIVALENTS 11.34%
PRIVATE MORTGAGE & ASSET-BACKED SECURITIES 9.55%
OTHER FEDERAL OBLIGATIONS 6.15%
CORPORATE BONDS 3.30%
DEVELOPMENTAL AGENCIES & NON-U.S.
GOVERNMENT BONDS 3.06%
<TABLE>
<CAPTION>
Principal Market Percent
Amount Value of Net
Bonds & Notes (000) (000) Assets
- ------------------------------------------------ -------- -------- --------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS - 50.93%
8.875% 2017 $40,300 $52,799 9.74%
10.375% 2012 30,000 40,922 7.55
10.375% 2009 28,500 37,250 6.87
8.125% 1998 25,250 26,662 4.92
9.25% 1998 20,000 21,900 4.04
12.00% 2013 13,000 19,756 3.64
8.875% 2000 16,250 18,375 3.39
8.75% 2008 10,000 11,775 2.17
8.875% 1997 10,000 10,636 1.96
11.75% 2010 5,500 7,770 1.43
8.375% 2008 5,000 5,783 1.07
12.50% 2014 3,000 4,769 .88
10.625% 2015 3,000 4,507 .83
8.75% 2000 2,750 3,110 .57
14.25% 2002 2,000 2,889 .53
15.75% 2001 1,500 2,258 .42
13.125% 2001 1,500 2,030 .37
10.75% 2003 1,250 1,627 .30
9.00% 1998 1,250 1,352 .25
FEDERAL AGENCY OBLIGATIONS - MORTGAGE
PASS-THROUGHS/1/ - 15.13%
Government National Mortgage Assn. 8.50% 2022-2025 28,975 30,264
Government National Mortgage Assn. 9.50% 2019-2021 9,776 10,511
Government National Mortgage Assn. 7.50% 2022-2023 5,166 5,272
Government National Mortgage Assn. 6.00% 2024 4,855 4,913
Government National Mortgage Assn. 5.50% 2024 4,540 4,567 11.42
Government National Mortgage Assn. 8.00% 2022 3,748 3,878
Government National Mortgage Assn. 9.00% 2009-2016 1,794 1,898
Government National Mortgage Assn. 10.50% 2019 444 495
Government National Mortgage Assn. 11.00% 2019 89 99
Government National Mortgage Assn. 12.00% 2012-2014 10 12
Federal National Mortgage Assn. 8.50% 2023 7,889 8,198
Federal National Mortgage Assn. 7.50% 2009 4,747 4,857 3.24
Federal National Mortgage Assn. 9.00% 2011-2025 4,307 4,525
Federal Home Loan Mortgage Corp. 9.00% 2021-2022 2,303 2,413
Federal Home Loan Mortgage Corp. 9.50% 2016 154 164 .47
Federal Home Loan Mortgage Corp. 12.00% 2010 3 3
FEDERAL AGENCY OBLIGATIONS - OTHER - 6.15%
FNSM Principal STRIPS 0%/7.56% 2001/2/ 15,000 14,105
FNSM Principal STRIPS 0%/8.62% 2022/2/ 10,000 8,648
FNSM Principal STRIPS 0%/7.94% 2001/2/ 5,000 4,731 5.38
FNSM Principal STRIPS 0%/8.25% 2022/2/ 2,000 1,705
Federal National Mortgage Assn. 8.625% 2021 2,000 2,145 .40
Federal Home Loan Mortgage Corp. 6.945% 2005 2,000 2,015 .37
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED)/1/ - 4.91%
GE Capital Mortgage Services, Inc., Series 1994-15, Class A-10,
6.00% 2009 8,000 7,360 1.36
CS First Boston Mortgage Securities Corp., Series
1995-AEW1,
Class A-1, 6.665% 2027 5,983 6,021 1.11
Prudential Home Mortgage Securities Co., Inc., Series 1992-33,
Class A-12, 7.50% 2022 5,724 5,742 1.06
CMC Securities Corp. I, Series 1993-E, Class S-9, 6.50% 4,518 4,346 .80
2008
J.P. Morgan Commercial Mortgage Finance Corp., Series 1995-C1,
Class A2, 7.398% 2010/3/ 3,000 3,176 .58
ASSET-BACKED OBLIGATIONS/1/ - 4.36%
MBNA Credit Card Trust 1991-A, 7.75% 1998 7,500 7,613 1.40
Standard Credit Card Master Trust 1991-3, Class A,
8.875% 1999 5,500 5,895
Standard Credit Card Trust 1990-6, Series A,
9.375% 1998 875 920 1.26
Green Tree Financial Corp., Series 1995-9, Class A-5,
6.80% 2027 5,000 5,038 .93
Case Equipment Loan Trust 1995-A, 7.30% 2002 4,087 4,162 .77
FINANCIAL - 2.97%
The Trustees of Columbia University in the City of New
York,
Series B, 8.65% 2003 3,000 3,425
The Trustees of Columbia University in the City of New
York,
Series B, 8.62% 2001 2,000 2,232 1.04
General Electric Capital Corp. 8.70% 2007 2,500 3,010
General Electric Capital Corp. 8.625% 2008 2,000 2,378 .99
Signal Capital Corp. 9.95% 2006 3,162 3,629 .67
National Westminster Bancorp Inc. 12.125% 2002 1,256 1,402 .27
DEVELOPMENTAL AUTHORITIES - 2.44%
International Bank for Reconstruction & Development 7.90%
1998 3,000 3,145
International Bank for Reconstruction & Development 14.90%
1997 1,200 1,354
International Bank for Reconstruction & Development 9.77%
1998 1,000 1,094 1.23
International Bank for Reconstruction & Development 9.76%
1998 1,000 1,093
Inter-American Development Bank 9.50% 1997 4,000 4,266 .79
European Investment Bank 8.875% 2001 2,000 2,268 .42
NON-U.S. GOVERNMENT OBLIGATIONS - 0.62%
Ontario (Province of) 15.75% 2012 1,700 1,993
Ontario (Province of) 15.25% 2012 1,145 1,382 .62
COLLATERALIZED MORTGAGE OBLIGATIONS
(FEDERAL AGENCIES)/1/ - 0.54%
Federal Home Loan Mortgage Corp., Series 1716, Class A,
6.50% 2009 2,250 2,177
Federal Home Loan Mortgage Corp., Series 83-B, Class B-3,
12.50% 2013 687 752 .54
PRIVATE ISSUE PASS-THROUGHS/1/ - 0.28%
Merrill Lynch Mortgage Investors Inc., Series 1995-C3,
Class A-2, 6.85% 2025 1,500 1,517 .28
TELEPHONE UTILITIES - 0.22%
BellSouth Savings and Security ESOP Trust 9.125% 2003 1,097 1,212 .22
INDUSTRIALS - 0.11%
DeBartolo Capital Corp. II 8.00% Euronotes 1996 575 576 .11
-------- --------
TOTAL BONDS & NOTES (cost: $468,234,000) 480,766 88.66
-------- --------
Short-Term Securities
- ------------------------------------------------
CORPORATE SHORT-TERM NOTES - 9.63%
Pfizer Inc 5.70% due 12/8/95 /4/ 15,000 14,981 2.76
Xerox Corp. 5.70% due 1/9/96 13,400 13,315 2.46
H.J. Heinz Co. 5.70%-5.72% due 12/13-12/18/95 12,900 12,865 2.37
AT&T Corp. 5.69% due 12/11/95 7,700 7,687 1.42
Associates Corp. of North America 5.89% due 12/1/95 3,400 3,399 .62
-------- --------
TOTAL SHORT-TERM SECURITIES (cost: $52,248,000) 52,247 9.63
-------- --------
TOTAL INVESTMENT SECURITIES (cost: $520,482,000) 533,013 98.29
Excess of money market account, cash and receivables
over payables 9,268 1.71
-------- --------
NET ASSETS $542,281 100.00%
======== ========
</TABLE>
/1/ Pass-through securities backed by a pool of mortgages or other loans on
which principal
payments are periodically made. Due to the possibility of early principal
payments, the
effective maturity of these securities is shorter than the stated maturity.
/2/ Represents a zero coupon bond which will convert to a coupon-bearing
security at a later date.
/3/ Coupon rates may change periodically.
/4/ Purchased in a private placement transaction; resale potential extends only
to qualified institutional buyers.
See Notes to Financial Statements
<PAGE>
Asset Allocation Fund
Investment Portfolio November 30, 1995
<TABLE>
<CAPTION>
Percent
of Net
Assets
<S> <C> <C> <C>
Equity-Type Securities 69.76%
U.S. Government Bonds 10.53
Corporate Bonds 9.85
Cash & Equivalents 9.63
Non-U.S. Government Bonds .23
LARGEST INDIVIDUAL EQUITY HOLDINGS
American Home Products 2.36%
CIGNA 2.21
Eli Lilly 1.72
Minnesota Mining and Manufacturing 1.58
Warner-Lambert 1.54
Pfizer 1.53
Wal-Mart Stores 1.45
Chevron 1.45
Textron 1.41
Phillips Petroleum 1.40
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- ---------------------------------------------------- ---------- ------- -------
HEALTH & PERSONAL CARE- 10.97%
American Home Products Corp. 225,000 $20,531 2.36%
ELI LILLY AND CO. 150,000 14,925 1.72
WARNER-LAMBERT CO. 150,000 13,388 1.54
PFIZER INC 230,000 13,340 1.53
BRISTOL-MYERS SQUIBB CO. 145,000 11,636 1.34
SmithKline Beecham PLC (American Depositary
Receipts) (United Kingdom) 120,000 6,390 .74
TAMBRANDS INC. 110,000 5,734 .66
KIMBERLY-CLARK CORP. 60,000 4,612 .53
BAUSCH & LOMB INC. 80,000 2,890 .33
ABBOTT LABORATORIES 48,000 1,950 .22
BANKING- 8.38%
NationsBank Corp. 155,000 11,063 1.27
CITICORP 140,000 9,905 1.14
FIRST INTERSTATE BANCORP 55,000 7,370 .85
PNC BANK CORP. 195,000 5,704 .66
FIRST FIDELITY BANCORPORATION 70,000 5,136 .59
FLEET FINANCIAL GROUP, INC. 120,000 5,010 .58
FIRST UNION CORP. 80,000 4,370 .50
U.S. BANCORP 120,000 4,065 .47
CoreStates Financial Corp 100,000 3,875 .44
CHASE MANHATTAN CORP. 55,000 3,348 .38
BANKAMERICA CORP. 50,000 3,181 .36
FIRST TENNESSEE NATIONAL CORP. 50,000 3,025 .35
KeyCorp 80,000 2,950 .34
J.P. MORGAN & CO. INC. 35,000 2,747 .32
COMERICA INC. 30,000 1,121 .13
ENERGY SOURCES- 6.32%
CHEVRON CORP. 255,000 12,591 1.45
PHILLIPS PETROLEUM CO. 365,000 12,136 1.40
ROYAL DUTCH PETROLEUM CO. (NEW YORK REGISTERED
SHARES) (NETHERLANDS) 60,000 7,702 .89
KERR-MCGEE CORP. 100,000 5,787 .66
ATLANTIC RICHFIELD CO. 50,000 5,419 .62
UNOCAL CORP. 155,000 4,166 .48
AMOCO CORP. 60,000 4,065 .47
Texaco Inc. 41,200 3,049 .35
INSURANCE- 6.17%
CIGNA CORP. 175,000 19,250 2.21
ALLSTATE CORP. 275,622 11,300 1.30
SAFECO CORP. 145,000 10,295 1.18
AMERICAN GENERAL CORP. 176,700 5,986 .69
AMBAC INC. 130,000 5,736 .66
ST. PAUL COMPANIES, INC. 20,000 1,120 .13
MERCHANDISING- 5.12%
WAL-MART STORES, INC. 525,000 12,600 1.45
J.C. PENNEY CO., INC. 210,000 9,844 1.13
WALGREEN CO. 200,000 5,825 .67
MAY DEPARTMENT STORES CO. 125,000 5,453 .63
SEARS, ROEBUCK AND CO. 120,000 4,725 .54
Gap, Inc. 70,000 3,167 .37
Hancock Fabrics, Inc. 300,000 2,888 .33
MULTI-INDUSTRY- 4.10%
MINNESOTA MINING AND MANUFACTURING CO. 210,000 13,755 1.58
TEXTRON INC. 160,000 12,260 1.41
TENNECO INC. 200,000 9,600 1.11
INDUSTRIAL COMPONENTS- 3.05%
ROCKWELL INTERNATIONAL CORP. 240,000 11,760 1.35
Johnson Controls, Inc. 150,000 10,388 1.20
DANA CORP. 150,000 4,388 .50
TRANSPORTATION: RAIL & ROAD- 2.92%
CSX CORP. 120,000 10,515 1.21
UNION PACIFIC CORP. 100,000 6,775 .78
CONRAIL, INC. 60,000 4,193 .48
NORFOLK SOUTHERN CORP. 50,000 3,937 .45
AEROSPACE & MILITARY TECHNOLOGY- 2.46%
GENERAL MOTORS CORP., CLASS H 200,000 9,500 1.09
BOEING CO. 130,000 9,474 1.09
NORTHROP GRUMMAN CORP. 40,000 2,460 .28
CHEMICALS- 2.39%
E.I. DU PONT DE NEMOURS AND CO. 120,000 7,980 .92
Monsanto Co. 40,000 4,580 .53
GREAT LAKES CHEMICAL CORP. 60,000 4,267 .49
EASTMAN CHEMICAL CO. 60,000 3,938 .45
BEVERAGES & TOBACCO- 2.30%
PEPSICO, INC. 210,000 11,603 1.33
SEAGRAM CO. LTD. (CANADA) 230,000 8,395 .97
FOREST PRODUCTS & PAPER- 2.19%
UNION CAMP CORP. 100,000 4,913 .56
WEYERHAEUSER CO. 100,000 4,525 .52
ITT RAYONIER INC. 100,000 3,825 .44
GEORGIA-PACIFIC CORP. 40,000 3,110 .36
Louisiana-Pacific Corp. 100,000 2,700 .31
FOOD & HOUSEHOLD PRODUCTS- 1.65%
H.J. HEINZ CO. 150,000 4,781 .55
McCormick & Co., Inc. 150,000 3,544 .41
Archer Daniels Midland Co. 200,000 3,450 .40
RALSTON PURINA CO. 40,000 2,560 .29
BUSINESS & PUBLIC SERVICES- 1.37%
DUN & BRADSTREET CORP. 120,000 7,485 .86
H&R Block, Inc. 100,000 4,450 .51
UTILITIES: ELECTRIC & GAS- 1.25%
LONG ISLAND LIGHTING CO. 195,000 3,339 .38
DETROIT EDISON CO. 100,000 3,262 .38
GENERAL PUBLIC UTILITIES CORP. 90,000 2,846 .33
ENTERGY CORP. 50,000 1,394 .16
MACHINERY & ENGINEERING- 1.05%
Deere & Co. 180,000 5,918 .68
CROMPTON & KNOWLES CORP. 250,000 3,250 .37
RECREATION & OTHER CONSUMER PRODUCTS- 1.05%
EASTMAN KODAK CO. 70,000 4,760 .55
STANLEY WORKS 60,000 3,038 .34
AMERICAN GREETINGS CORP., CLASS A 50,000 1,363 .16
DATA PROCESSING & REPRODUCTION- 0.91%
APPLE COMPUTER, INC. 130,500 4,975 .57
INTERNATIONAL BUSINESS MACHINES CORP. 30,000 2,899 .34
TELECOMMUNICATIONS- 0.90%
PACIFIC TELESIS GROUP 150,000 4,500 .52
AT&T CORP. 50,000 3,300 .38
ENERGY EQUIPMENT- 0.81%
SCHLUMBERGER LTD. (NETHERLANDS ANTILLES) 70,000 4,445 .51
COOPER INDUSTRIES, INC. 71,921 2,625 .30
METALS: NONFERROUS- 0.67%
ALUMINUM CO. OF AMERICA 100,000 5,850 .67
AUTOMOBILES- 0.56%
GENERAL MOTORS CORP. 100,000 4,850 .56
ELECTRICAL & ELECTRONICS- 0.44%
HUBBELL INC., CLASS B 63,000 3,851 .44
MISCELLANEOUS MATERIALS & COMMODITIES- 0.42%
TRINOVA CORP. 120,000 3,690 .42
BROADCASTING & PUBLISHING- 0.21%
TIME WARNER INC., PREFERRED EQUITY REDEMPTION
CUMULATIVE STOCK 55,000 1,794 .21
------- -------
TOTAL STOCKS (COST: $467,678,000) 588,430 67.66
------- -------
PRINCIPAL
AMOUNT
CONVERTIBLE DEBENTURES (000)
- ---------------------------------------------------- ---------- ------- -------
INDUSTRIALS & SERVICES- 1.21%
TURNER BROADCASTING SYSTEM, INC. 0% 2007/1/ $10,000 4,550 .52
HANSON AMERICA INC. 2.39% 2001/1/ 5,000 4,119 .47
U S WEST Communications, Inc. 0% 2011 3,000 1,016 .12
TIME WARNER INC. 0% 2012 2,500 872 .10
------- -------
TOTAL CONVERTIBLE DEBENTURES (COST: $9,626,000) 10,557 1.21
------- -------
MISCELLANEOUS
OTHER EQUITY-TYPE SECURITIES IN INITIAL PERIOD OF
ACQUISITION (COST:$9,086,000) 7,736 .89
------- -------
TOTAL EQUITY-TYPE SECURITIES (COST: $486,390,000) 606,723 69.76
------- -------
BONDS & NOTES
- -----------------------------------------------
U.S. TREASURY OBLIGATIONS- 9.96%
10.375% 2012 15,000 20,461 2.35
6.75% 1997 13,000 13,243 1.52
5.75% 1997 12,000 12,082 1.39
5.375% 1998 12,000 11,987 1.38
8.75% 1997 6,000 6,353 .73
8.75% 2008 5,000 5,888 .68
9.25% 1998 5,000 5,475 .63
8.75% 2000 3,000 3,393 .39
8.875% 1999 2,500 2,746 .32
10.375% 2009 2,000 2,614 .30
8.50% 1997 1,000 1,047 .12
11.75% 2010 500 706 .08
10.75% 2003 500 651 .07
INDUSTRIALS- 4.88%
CONTAINER CORP. OF AMERICA 9.75% 2003 6,500 6,386 .73
Time Warner Inc. 9.125% 2013 4,000 4,426 .51
ORYX ENERGY CO. 9.50% 1999 3,000 3,229
ORYX ENERGY CO. 10.00% 1999 1,000 1,080 .50
MARVEL HOLDINGS INC., SERIES B, 0% 1998 4,800 3,408 .39
POHANG IRON & STEEL 7.50% 2002 3,000 3,168 .36
GENERAL MOTORS CORP. 8.80% 2021 2,500 3,008 .35
USX Corp. 9.125% 2013 2,500 2,831 .33
NEWS AMERICA HOLDINGS INC. 10.125% 2012 2,000 2,387 .27
Inco Ltd. 9.60% 2022 2,000 2,261 .26
TCI Communications, Inc. 8.75% 2015 2,000 2,159 .25
Tele-Communications, Inc. 9.25% 2023 2,000 2,119 .24
ACME METALS INC. 12.50% 2002 2,000 1,965 .23
CENCALL COMMUNICATIONS CORP. 0%/10.125% 2004/2/ 3,000 1,613 .18
Parker & Parsley Petroleum Co. 8.25% 2007 1,500 1,600 .18
Kaiser Aluminum Corp. 12.75% 2003 750 821 .10
FINANCIAL- 3.36%
GENERAL MOTORS ACCEPTANCE CORP. 8.875% 2010 3,235 3,912
GENERAL MOTORS ACCEPTANCE CORP. 7.00% 2000 3,000 3,092
GENERAL MOTORS ACCEPTANCE CORP. 9.625% 2001 2,000 2,333 1.07
CAPITAL ONE BANK 6.61% 1999 7,500 7,575 .87
GENERAL ELECTRIC CAPITAL CORP. 8.875% 2009 2,000 2,462 .28
American Re Corp. 10.875% 2004 1,500 1,672 .19
H.F. AHMANSON & CO. 9.875% 1999 1,400 1,580 .18
B.F. Saul Real Estate Investment Trust 11.625% 2002 1,500 1,515 .18
SECURITY PACIFIC CORP. 10.25% 2001 1,000 1,193 .14
NATIONAL WESTMINSTER BANCORP INC. 9.45% 2001 1,000 1,154 .13
Bankers Trust New York Corp. 8.25% 2005 1,000 1,104 .13
Shopping Center Associates 6.75% 2004/1/ 1,000 989 .12
Golden West Financial Corp. 10.25% 2000 500 583 .07
COLLATERALIZED MORTGAGE OBLIGATIONS
(PRIVATELY ORIGINATED)/3/- 0.89%
Delta Air Lines, Inc., 1993-A2, 10.50% 2016 2,000 2,463
Delta Air Lines, Inc., 1992-A2, 9.20% 2014 1,000 1,104 .41
American Airlines, Inc., 1991-A, 9.71% 2007 2,311 2,646 .31
FEDERAL EXPRESS CORP. 7.53% 2006 1,416 1,480 .17
FEDERAL AGENCY OBLIGATIONS-MORTGAGE
PASS-THROUGHS/3/- 0.57%
Government National Mortgage Assn. 8.50% 2025 4,730 4,939 .57
TRANSPORTATION- 0.49%
Jet Equipment Trust Series 1995-B 7.83% 2015/1/ 2,500 2,597 .30
AMR CORP. 9.75% 2000 1,000 1,111 .13
UNITED AIR LINES, INC. 9.00% 2003 500 547 .06
NON-U.S. GOVERNMENT OBLIGATIONS- 0.23%
POLAND GOVERNMENT 7.75% 2000/1/ 2,000 2,034 .23
GAS UTILITIES- 0.23%
COLUMBIA SYSTEMS 7.05% 2007 2,000 2,030 .23
------- -------
TOTAL BONDS & NOTES (COST: $176,501,000) 179,222 20.61
------- -------
SHORT-TERM SECURITIES
- ------------------------------------------------
CORPORATE SHORT-TERM NOTES- 5.38%
CPC International Inc. 5.71% due 12/7/95/1/ 15,400 15,383 1.77
Procter & Gamble Co. 5.67% due 1/16/96 11,000 10,918 1.26
CIT Group Holdings Inc. 5.72%-5.75% due 12/1-12/18/95 10,300 10,283 1.18
Xerox Corp. 5.67%-5.69% due 12/8/95-1/18/96 10,200 10,155 1.17
U.S. TREASURY OBLIGATIONS- 3.82%
6.875% DUE 10/31/96 10,000 10,125 1.16
6.50% DUE 9/30/96 10,000 10,084 1.16
8.875% DUE 2/15/96 6,000 6,038 .69
4.25% DUE 5/15/96 5,000 4,973 .57
8.00% DUE 10/15/96 1,000 1,021 .12
7.875% DUE 7/15/96 1,000 1,014 .12
------- -------
TOTAL SHORT-TERM SECURITIES (COST: $80,883,000) 79,994 9.20
------- -------
TOTAL INVESTMENT SECURITIES (COST: $743,774,000) 865,939 99.57
EXCESS OF MONEY MARKET ACCOUNT, CASH AND
RECEIVABLES OVER PAYABLES 3,753 .43
------- -------
NET ASSETS $869,692 100.00%
======= =======
</TABLE>
/1/Purchased in a private placement transaction; resale potential extends only
to qualified institutional buyers.
/2/Represents a zero coupon bond which will convert to a coupon-bearing
security at a
later date.
/3/Pass-through securities backed by a pool of mortgages or other loans on which
principal payments are periodically made. Due to the possibility of early
principal payments, the effective maturity of these securities is shorter than
the stated maturity.
See Notes to Financial Statements
Equity-type securities appearing in the portfolio
since May 31, 1995
- ---------------------------------------------------
Archer Daniels Midland
CoreStates Financial
Deere & Co.
Gap
H&R Block
Hancock Fabrics
KeyCorp
Louisiana-Pacific
McCormick & Co.
Monsanto
NationsBank
SmithKline Beecham
Texaco
U S WEST Communications
Equity-type securities eliminated from the portfolio
since May 31,1995
- -----------------------------------------------------
Advanced Micro Devices
American International Group
Bankers Trust New York
Baxter International
Bell Atlantic
CBS
General Mills
Houston Industries
Limited
Melville
Ohio Casualty
Sprint
Times Mirror
USX
<PAGE>
AMERICAN VARIABLE INSURANCE SERIES INTERNATIONAL FUND
Investment Portfolio, November 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Where the Fund's Assets Are Invested
Percent of Percent of
Net Assets Net Assets
---------- ----------
EUROPE 48.64%
ASIA/PACIFIC 23.90%
THE AMERICAS 6.04%
OTHER .38%
CASH AND EQUIVALENTS 21.04%
Largest Individual Equity Holdings
Orkla 2.26%
Forte 1.78
Australia and New Zealand Banking Group 1.58
Astra 1.54
Compagnie Generale des Etablissements Michelin 1.44
Bayerische Motoren Werke 1.33
ABN AMRO 1.28
Telecom Corp. of New Zealand 1.26
Coca-Cola Amatil 1.26
Tele Danmark 1.23
Market Percent
Number of Value of Net
Stocks (common and preferred) Shares (000) Assets
- -------------------------------------------------------- ---------- -------- ------
TELECOMMUNICATIONS - 7.82%
Telecom Corp. of New Zealand Ltd. (New Zealand)/1/ 4,956,800 $20,732
Telecom Corp. of New Zealand Ltd. (American Depositary 11,700 784 1.26%
Receipts)
Tele Danmark AS, Class B (American Depositary Receipts)
(Denmark) 750,000 20,906 1.23
Telecom Italia Mobile SpA (Italy) 11,961,000 19,398
Telecom Italia Mobile SpA, savings shares 276,000 268 1.16
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 487,000 16,071 .94
Telecomunicacoes Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 256,722 12,323 .72
Nippon Telegraph and Telephone Corp. (Japan) 1,108 9,027 .53
Telefonica de Espana, SA (American Depositary Receipts) 158,000 6,557 .39
(Spain)
Koninklijke PTT Nederland NV (Netherlands) 150,000 5,339 .31
STET - Societa Finanziaria Telefonica p.a. (Italy) 950,000 2,588
STET - Societa Finanziaria Telefonica p.a., .26
nonconvertible
savings shares 950,000 1,864
Philippine Long Distance Telephone Co. (Global Depositary
Receipts) (Philippines) 80,000 4,320 .25
Telecom Italia SpA (Italy) 2,875,200 3,881
Telecom Italia SpA, savings shares 276,000 302 .25
Vodafone Group PLC (American Depositary Receipts)
(United Kingdom) 66,000 2,384 .22
Vodafone Group PLC 392,976 1,408
Cable and Wireless PLC (United Kingdom) 533,600 3,704 .22
Perusahaan Perseroan (Persero) PT Indonesian Satellite Corp.
(American Depositary Receipts) (Indonesia) 40,000 1,370 .08
BANKING - 6.48%
Australia and New Zealand Banking Group Ltd. (Australia) 6,023,299 26,852 1.58
ABN AMRO Holding NV (Netherlands) 491,334 21,854 1.28
Westpac Banking Corp. (Australia) 3,815,761 15,820 .93
Banco de Santander, SA (Spain) 240,800 11,217
Banco de Santander, SA (American Depositary Receipts) 13,200 609 .69
PT Bank Internasional Indonesia (Indonesia) 1,863,000 5,957 .35
Banco Popular Espanol, SA (Spain) 30,000 5,031 .29
Bank of Montreal (Canada) 220,000 4,978 .29
CS Holding Group, registered shares (Switzerland) 48,000 4,551 .27
Safra Republic Holdings SA (Luxembourg) 42,000 3,717 .22
Kansallis-Yhtymae (Finland) 4,022,800 3,366 .20
(FORMERLY KANSALLIS-OSAKE-PANKKI)
Svenska Handelsbanken Group, Class A (Sweden) 107,000 2,161
Svenska Handelsbanken Group, Class B 47,300 923 .18
Grupo Financiero Banamex Accival, SA de CV, Class B 1,130,397 1,740
(Mexico)
Grupo Financiero Banamex Accival, SA de CV, Class L 56,520 80 .11
Philippine National Bank (Philippines) 98,049 869 .05
Deutsche Bank AG (Germany) 13,000 609 .04
MULTI-INDUSTRY - 5.95%
Orkla AS, Class A (Norway) 755,000 38,493 2.26
Brierley Investments Ltd. (New Zealand) 20,901,871 15,820
Brierley Investments Ltd., 9.00% convertible preferred 1,445,000 1,028 .99
Hutchison Whampoa Ltd. (Hong Kong) 2,000,000 11,301 .66
Groupe Bruxelles Lambert SA (Belgium) 83,000 10,793 .63
Industriforvaltnings AB Kinnevik, Class B (Sweden) 165,000 4,678
Industriforvaltnings AB Kinnevik, Class A 101,600 2,788 .44
Lend Lease Corp. Ltd. (Australia) 443,522 6,143 .36
Chargeurs (France) 18,700 4,046 .24
Swire Pacific Ltd., Class A (Hong Kong) 495,000 3,744 .22
Preussag AG (Germany) 9,200 2,644 .15
AUTOMOBILES - 5.05%
Bayerische Motoren Werke AG (Germany) 35,000 18,827
Bayerische Motoren Werke AG, preferred shares 10,472 3,901 1.33
Peugeot SA (France) 110,000 14,216 .83
Volvo AB, Class B (Sweden) 640,000 13,267 .78
Suzuki Motor Corp. (Japan) 1,100,000 12,186 .72
Toyota Motor Corp. (Japan) 598,000 11,784 .69
Daimler-Benz AG (Germany) 16,610 8,161 .48
Renault V.I. SA (France) 129,500 3,700 .22
BROADCASTING & PUBLISHING - 4.85%
News Corp. Ltd. (American Depositary Receipts) 362,000 7,602
(Australia)
News Corp. Ltd., preferred shares (American Depositary 181,000 3,416 .65
Receipts)
NV Verenigd Bezit VNU (Netherlands) 77,000 10,854 .64
Television Broadcasts Ltd. (Hong Kong) 2,562,000 9,673 .57
CANAL+ (France) 37,540 6,830 .40
Independent Newspapers, PLC (Ireland) 1,003,511 6,062 .36
Grupo Televisa, SA (American Depositary Receipts) 261,000 5,644 .33
(Mexico)
Pearson PLC (United Kingdom) 540,000 5,365 .31
Elsevier NV (Netherlands) 340,000 4,635 .27
Sing Tao Holdings Ltd. (Hong Kong - Incorporated in 7,723,230 3,994 .23
Bermuda)
TeleWest Communications PLC (American Depositary
Receipts)
(United Kingdom)/2/ 141,000 3,595 .21
News International PLC, special dividend shares (United 580,000 2,726 .16
Kingdom)
John Fairfax Holdings Ltd. (Australia) 1,280,000 2,587 .15
British Sky Broadcasting Group PLC (American Depositary
Receipts) (United Kingdom) 58,600 2,337 .14
Wolters Kluwer NV (Netherlands) 26,118 2,201 .13
Tokyo Broadcasting System, Inc. (Japan) 113,000 1,883 .11
Rogers Communications Inc., Class B (Canada)/2/ 175,000 1,835 .11
AUDIOFINA (Luxembourg) 24,550 1,196
AUDIOFINA, 5.00% convertible preferred 2,230 114 .08
UTILITIES: ELECTRIC & GAS - 4.26%
Hongkong Electric Holdings Ltd. (Hong Kong) 5,875,000 19,712 1.16
Korea Electric Power Corp. (American Depositary Receipts) 445,000 10,818
(Korea)
Korea Electric Power Corp. 188,000 8,137 1.11
Centrais Eletricas Brasileiras SA, Class B, preferred
nominative (American Depositary Receipts) (Brazil) 948,000 13,154 .77
Iberdrola, SA (Spain) 915,000 7,709 .45
China Light & Power Co., Ltd. (Hong Kong) 1,589,800 7,482 .44
Scottish Power PLC (United Kingdom) 600,000 3,454 .20
CESP-Companhia Energetica de Sao Paulo, preferred
nominative (American Depositary Receipts) (Brazil)/1/ /2/ 204,096 1,633 .13
CESP-Companhia Energetica de Sao Paulo, ordinary 20,445,000 482
nominative
ELECTRICAL & ELECTRONICS - 3.76%
ASEA AB, Class A (Sweden) 130,000 12,603
ASEA AB, Class B 69,300 6,687 1.13
Nokia Corp., Class A (Finland) 180,000 9,875
Nokia Corp., Class K 150,000 8,264 1.07
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 534,600 12,590
Telefonaktiebolaget LM Ericsson, Class B, 4.25%
convertible preferred 14,500 46 .74
BBC Brown Boveri Ltd, Class A (Switzerland) 9,292 10,667 .63
Hitachi, Ltd. (Japan) 115,000 1,161 .07
Siemens AG (Germany) 2,050 1,069 .06
Johnson Electric Holdings Ltd. (Hong Kong - Incorporated
in Bermuda) 495,000 1,024 .06
FOOD & HOUSEHOLD PRODUCTS - 3.50%
Reckitt & Colman PLC (United Kingdom) 1,776,250 18,204 1.07
Nestle SA (Switzerland) 15,436 16,447 .97
Groupe Danone (France) 70,000 10,926 .64
PT Indofood Sukses Makmur (Indonesia) 1,008,500 4,417 .26
Cadbury Schweppes PLC (United Kingdom) 500,454 4,255 .25
Dalgety PLC (United Kingdom) 500,000 2,970 .17
Hazlewood Foods PLC (United Kingdom) 1,500,000 2,342 .14
CHEMICALS - 2.66%
L'Air Liquide (France) 75,229 12,103 .71
Ciba-Geigy Ltd. (Switzerland) 10,400 9,268 .55
DSM NV (Netherlands) 98,902 7,871 .46
Akzo NV (Netherlands) 62,000 6,999 .41
AGA AB, Class B (Sweden) 360,000 4,994 .29
Sumitomo Chemical Co., Ltd. (Japan) 826,000 4,098 .24
HEALTH & PERSONAL CARE - 2.65%
AB Astra, Class A (Sweden) 703,000 26,200 1.54
Glaxo Holdings PLC (American Depositary Receipts)
(United Kingdom) 500,000 13,375 .78
Banyu Pharmaceutical Co., Ltd. (Japan) 495,000 5,630 .33
MACHINERY & ENGINEERING - 2.43%
Mannesmann AG (Germany) 60,187 19,354 1.14
Atlas Copco AB, Class A (Sweden) 815,200 12,302 .72
VA Technologie AG (Austria) 55,100 6,349 .37
Sandvik AB, Class B (Sweden) 99,700 1,831 .11
GEA AG, preferred shares (Germany) 5,000 1,588 .09
LEISURE & TOURISM - 2.35%
Forte PLC (United Kingdom) 5,768,836 30,246 1.78
Mandarin Oriental International Ltd. (Singapore) 6,699,277 7,570 .44
Rank Organisation PLC (United Kingdom) 350,000 2,186 .13
INSURANCE - 2.21%
Irish Life PLC (Ireland) 2,636,889 10,180 .60
Munchener Ruckversicherungs-Gesellschaft (Germany) 3,673 6,754
Munchener Ruckversicherungs-Gesellschaft, rights, expire 3,673 411 .42
12/5/95/2/
Munchener Ruckversicherungs-Gesellschaft, warrants, 483 51
expire 1998/2/
GIO Australia Holdings Ltd. (Australia) 2,851,201 6,377 .37
Corporacion Mapfre, CIR, SA (Spain) 98,652 5,546 .32
Internationale Nederlanden Groep NV, warrants, expire
2001
(Netherlands)/2/ 1,500,000 5,062 .30
PartnerRe Holdings Ltd. (Bermuda) 127,100 3,368 .20
RECREATION & OTHER CONSUMER PRODUCTS - 1.94%
Nintendo Co., Ltd. (Japan) 145,000 11,373 .67
THORN EMI PLC (United Kingdom) 468,712 11,175 .65
PolyGram NV (New York Registered Shares) (Netherlands) 175,000 10,500 .62
MISCELLANEOUS MATERIALS & COMMODITIES - 1.93%
Compagnie de Saint-Gobain (France) 121,879 14,066 .82
English China Clays PLC (United Kingdom) 2,168,750 10,906 .64
Pilkington PLC (United Kingdom) 2,700,000 7,956 .47
BEVERAGES & TOBACCO - 1.80%
Coca-Cola Amatil Ltd. (Australia) 2,656,602 21,515 1.26
LVMH Moet Hennessy Louis Vuitton (France) 48,000 9,117 .54
INDUSTRIAL COMPONENTS - 1.65%
Compagnie Generale des Etablissements Michelin, Class B 573,000 23,283
(France)
Compagnie Generale des Etablissements Michelin, 2.50% 1.44
convertible preferred 23,200 1,239
Magna International Inc., Class A (Canada) 43,000 1,871 .11
Pirelli SpA (Italy)/2/ 900,000 1,090 .07
Orbital Engine Corp. Ltd. (Australia)/2/ 611,040 540 .03
BUSINESS & PUBLIC SERVICES - 1.57%
Autopistas, Concesionaria Espanola, SA (Spain) 1,035,000 11,361 .67
Reuters Holdings PLC (United Kingdom) 932,000 8,796 .52
Cordiant PLC (United Kingdom) 1,808,995 2,518
Cordiant PLC, rights, expire 12/13/95/2/ 1,808,995 831 .19
Securicor Group PLC, Class A (United Kingdom) 165,000 2,349 .14
Eurotunnel SA, units (France)/2/ 592,000 866 .05
ENERGY SOURCES - 1.51%
YPF SA, Class D (American Depositary Receipts) 634,000 12,363 .73
(Argentina)
TOTAL, Class B (France) 142,872 8,788 .52
Petrofina SA (Belgium) 15,175 4,492 .26
MERCHANDISING - 1.29%
Tesco PLC (United Kingdom) 2,043,081 9,023 .53
Amway Japan Ltd. (American Depositary Receipts) (Japan) 200,000 4,050 .24
Woolworths Ltd. (Australia) 1,672,631 3,915 .23
Ito-Yokado Co., Ltd. (Japan) 50,000 2,755 .16
Chain Store Okuwa Co., Ltd. (Japan) 100,000 1,431 .08
Cifra, SA de CV, Class C (Mexico) 832,000 880 .05
BUILDING MATERIALS & COMPONENTS - 1.25%
Holderbank Financiere Glaris Ltd. (Switzerland) 21,307 15,872
Holderbank Financiere Glaris Ltd., warrants, expire 1995/2/ 106,535 104 .94
CEMEX, SA, Class A (Mexico) 1,086,250 3,327 .19
Poliet (France) 20,782 1,674 .10
Tolmex, SA de CV, Class B2 (Mexico) 85,000 345 .02
METALS: NONFERROUS - 1.20%
Inco Ltd. (Canada) 180,000 6,413 .38
Western Mining Corp. Holdings Ltd. (Australia) 900,000 6,038 .35
Noranda Inc. (Canada) 200,000 4,231 .25
Teck Corp., Class B (Canada) 200,000 3,826 .22
TRANSPORTATION: AIRLINES - 1.15%
British Airways PLC (American Depositary Receipts)
(United Kingdom) 63,750 4,487 .49
British Airways PLC 560,000 3,943
Cathay Pacific Airways Ltd. (Hong Kong) 3,656,000 5,460 .32
Singapore Airlines Ltd. (Singapore) 358,000 3,350 .20
Air New Zealand Ltd., Class B (New Zealand) 660,000 2,304 .14
APPLIANCES & HOUSEHOLD DURABLES - 0.96%
Sony Corp. (Japan) 144,000 7,623 .45
AB Electrolux, Class B (Sweden) 137,900 5,917 .35
Philips Electronics NV (Netherlands) 70,000 2,751 .16
TRANSPORTATION: RAIL & ROAD - 0.95%
TNT Ltd., 8.00% convertible preferred (Australia) 5,790,400 8,432
TNT Ltd./2/ 5,336,044 7,454 .93
Canadian National Railway Co. (Canada)/2/ 25,000 375 .02
FOREST PRODUCTS & PAPER - 0.95%
Repola Ltd. (Finland) 385,000 7,491 .44
Fletcher Challenge Ltd. (New Zealand) 2,200,000 5,455
Fletcher Challenge Forests Division (American Depositary
Receipts) 51,670 723 .39
Fletcher Challenge Forests Division 312,150 440
Carter Holt Harvey Ltd. (New Zealand) 981,674 2,069 .12
REAL ESTATE - 0.47%
Sun Hung Kai Properties Ltd. (Hong Kong) 1,000,000 8,049 .47
WHOLESALE & INTERNATIONAL TRADE - 0.46%
ITOCHU Corp. (Japan) 600,000 3,971 .23
Mitsubishi Corp. (Japan) 325,000 3,887 .23
AEROSPACE & MILITARY TECHNOLOGY - 0.41%
Bombardier Inc., Class B (Canada) 550,000 7,032 .41
TRANSPORTATION: SHIPPING - 0.27%
Nippon Yusen KK (Japan) 790,000 4,601 .27
ELECTRONIC INSTRUMENTS - 0.18%
Scitex Corp. Ltd. (Israel) 210,000 3,019 .18
METALS: STEEL - 0.18%
Svenskt Stal AB, Class A (Sweden) 240,000 2,396 .14
Tubos de Acero de Mexico, SA (American Depositary
Receipts)(Mexico)/2/ 85,000 595 .04
MISCELLANEOUS
Other stocks in initial period of acquisition 75,068 4.41
-------- ------
TOTAL STOCKS (cost: $1,143,527,000) 1,337,241 78.50
-------- ------
Principal
Amount
Convertible Debentures (000)
- --------------------------------------------------------- ---------- -------- ------
FOREST PRODUCTS & PAPER - 0.24%
Kymmene Corp. 8.25% 2043 $17,000 4,090 .24
BANKING - 0.22%
Bangkok Bank Ltd. 3.25% 2004/1/ 3,675 3,693 .22
-------- ------
TOTAL CONVERTIBLE DEBENTURES (cost: $7,821,000) 7,783 .46
-------- ------
TOTAL EQUITY-TYPE SECURITIES (cost: $1,151,348,000) 1,345,024 78.96
-------- ------
Principal Market Percent
Amount Value of Net
Short-Term Securities (000) (000) Assets
- --------------------------------------------------------- ---------- -------- ------
CORPORATE SHORT-TERM NOTES - 16.27%
Toyota Motor Credit Corp. 5.71% due 1/11-1/12/96 39,500 39,237 2.30
Daimler-Benz North America Corp. 5.72% due 12/8/95-1/3/96 30,000 29,901 1.76
Caisse Nationale des Telecommunications 5.68%-5.70% due 29,793 29,769 1.75
12/4-12/8/95
Glaxo Wellcome PLC 5.69%-5.72% due 12/18/95-1/19/96/1/ 28,400 28,268 1.66
National Australia Funding (Delaware) Inc. 5.67%-5.70% 26,000 25,823 1.51
due
1/12/96
Siemens Corp. 5.68% due 1/18/96 25,000 24,807 1.46
Abbey National North America 5.72% due 1/29/96 20,000 19,810 1.16
Nestle Capital Corp. 5.69% due 12/7/95 18,800 18,779 1.10
Bank of Montreal 5.70% due 1/23/96 18,300 18,143 1.06
Associates Corp. of North America 5.89% due 12/1/95 15,830 15,827 .93
Canadian Wheat Board 5.70% due 12/4/95 13,800 13,791 .81
CPC International Inc. 5.71% due 12/7/95/1/ 13,100 13,086 .77
CERTIFICATES OF DEPOSIT - 4.46%
Societe Generale 5.75%-5.78% due 12/1/95-1/2/96 46,000 46,000 2.70
Bayerische Landesbank Girozentrale 5.80% due 1/24/96 20,000 20,000 1.17
National Westminster Bank PLC 5.78%-5.82% due 10,000 10,000 .59
1/12-1/16/96
NON-U.S. GOVERNMENT OBLIGATIONS - 0.31%
New Zealand Government 9.00% due 11/15/96 NZ 8,000 5,271 .31
-------- ------
TOTAL SHORT-TERM SECURITIES (cost: $357,842,000) 358,512 21.04
-------- ------
TOTAL INVESTMENT SECURITIES (cost: $1,509,190,000) 1,703,536 100.00
Excess of payables over money market account, cash and 65 .00
receivables
-------- ------
NET ASSETS $1,703,471 100.00%
======== ======
</TABLE>
/1/ Purchased in a private placement transaction; resale to the public may
require registration or may extend only to qualified institutional buyers.
/2/ Non-income-producing securities.
See Notes to Financial Statements
Equity-type securities appearing in the
portfolio since May 31, 1995
- -----------------------------------------
AGA
Air New Zealand
Banco de Santander
Cadbury Schweppes
Canadian National Railway
Dalgety
Groupe Danone
Koninklijke PTT Nederland
LVMH Moet Hennessy Louis Vuitton
Noranda
PartnerRe Holdings
Perusahaan Perseroan (Persero) PT Indonesian Satellite
Svenska Handelsbanken Group
Telecom Italia Mobile
Woolworths
Equity-type securities eliminated from the
portfolio since May 31, 1995
- --------------------------------------------
Alusuisse-Lonza Holding
Banco Bilbao Vizcaya
Bank of Ayudhya
BASF
Bayer
Bayerische Vereinsbank
British Steel
Canadian Imperial Bank of Commerce Credit local de France Cross-Harbour Tunnel
Daily Mail and General Trust Europe 1 Communication Falconbridge Havas Hoechst
Holdingmaatschappij De Telegraaf Kwik-Fit Holdings Pakistan Telecommunication
Pioneer Industries International Refuge Group Rogers Cantel Mobile
Communications Rolls-Royce Sembawang Shipyard Sika Finanz Siu-Fung Ceramics
Holdings Thames Water Thyssen Volkswagen Welsh Water WHSmith Group American
Variable Insurance Series
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
at November 30, 1995
(dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
- --------------------------------- ---------- ---------- ---------- ----------
ASSETS:
Investment securities at market
(cost: $2,348,914; $1,509,190;
$3,092,802; $743,774; $528,075;
$520,482; $203,315
and $8,946,552, respectively) $3,151,350 $1,703,536 $3,923,652 $865,939
Money market account 142 100 194 196
Cash 5 3 5 5
Receivables for-
Sales of investments 11,749 2,522 19,947 1,102
Sales of fund's shares 4,745 9,213 1,927 306
Dividends and accrued
interest 1,314 5,140 9,968 5,308
---------- ---------- ---------- ----------
3,169,305 1,720,514 3,955,693 872,856
---------- ---------- ---------- ----------
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
---------- ---------- ---------- ----------
ASSETS:
Investment securities at market
(cost: $2,348,914; $1,509,190;
$3,092,802; $743,774; $528,075;
$520,482; $203,315
and $8,946,552, respectively) $532,674 $533,013 $203,315 $10,913,479
Money market account 175 183 - 990
Cash 5 5 25 53
Receivables for-
Sales of investments 995 8,767 - 45,082
Sales of fund's shares 462 416 135 17,204
Dividends and accrued
interest 8,527 5,401 - 35,658
---------- ---------- ---------- ----------
542,838 547,785 203,475 11,012,466
---------- ---------- ---------- ----------
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
---------- ---------- ---------- ----------
LIABILITIES:
Payables for-
Purchases of investments 13,628 15,957 1,037 2,815
Repurchases of fund's shares 113 8 63 -
Management services 1,073 871 1,263 334
Accrued expenses 50 207 61 15
---------- ---------- ---------- ----------
14,864 17,043 2,424 3,164
NET ASSETS AT ---------- ---------- ---------- ----------
NOVEMBER 30, 1995 $3,154,441 $1,703,471 $3,953,269 $869,692
=========== =========== =========== ===========
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
LIABILITIES: ---------- ---------- ---------- ----------
Payables for-
Purchases of investments 8,349 5,264 - 47,050
Repurchases of fund's shares 53 7 10,274 10,518
Management services 221 223 80 4,065
Accrued expenses 10 10 4 357
---------- ---------- ---------- ----------
8,633 5,504 10,358 61,990
NET ASSETS AT ---------- ---------- ---------- ----------
NOVEMBER 30, 1995 $534,205 $542,281 $193,117 $10,950,476
=========== =========== =========== ===========
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
---------- ---------- ---------- ----------
Shares of beneficial interest
outstanding (unlimited
shares authorized) 75,438,942 122,610,312 125,619,032 63,143,826
Net asset value per share $41.81 $13.89 $31.47 $13.77
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
---------- ---------- ---------- ----------
Shares of beneficial interest
outstanding (unlimited
shares authorized) 38,177,115 47,057,482 17,384,644
Net asset value per share $13.99 $11.52 $11.11
</TABLE>
See Notes to Financial Statements
American Variable Insurance Series
FINANCIAL STATEMENTS
<PAGE>
Statement of Operations
for the year ended November 30, 1995
(dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
---------- ---------- --------- ----------
INVESTMENT INCOME:
Income:
Dividends $14,993 $31,190 $76,846 $15,947
Interest 20,613 20,348 26,502 18,376
---------- ---------- ---------- ----------
35,606 51,538 103,348 34,323
---------- ---------- ---------- ----------
Expenses:
Management services fee 11,222 9,882 13,593 3,620
Reports to shareholders 96 56 123 28
Registration statement and
prospectus 120 79 151 35
Postage, stationery and
supplies 170 106 230 52
Trustees' fees 41 26 54 12
Auditing and legal fees 32 22 41 12
Custodian fee 233 1,170 285 65
Taxes other than federal
income tax 36 24 49 11
Other expenses 21 33 26 8
---------- ---------- ---------- ----------
11,971 11,398 14,552 3,843
---------- ---------- ---------- ----------
Net investment income 23,635 40,140 88,796 30,480
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
ON INVESTMENTS:
Realized gain (loss) before
non-U.S. taxes 259,039 35,433 160,279 30,610
Non-U.S. taxes - (488) - -
---------- ---------- ---------- ----------
Net realized gain (loss) 259,039 34,945 160,279 30,610
---------- ---------- ---------- ----------
Net change in unrealized
appreciation (depreciation):
Beginning of year 322,212 111,219 139,391 (7,649)
End of year 802,436 194,315 830,850 122,165
---------- ---------- ---------- -----------
Net unrealized appreciation 480,224 83,096 691,459 129,814
---------- ---------- ---------- -----------
Net realized gain (loss) and
unrealized appreciation
on investments 739,263 118,041 851,738 160,424
---------- ---------- ---------- -----------
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS $762,898 $158,181 $940,534 $190,904
========= =========== ========= =========
U.S.
High- Government/ Cash
Yield AAA-Rated Manage-
Bond Securities ment
Fund Fund Fund Total
---------- -------------- ---------- ---------
-
INVESTMENT INCOME:
Income:
Dividends $1 - - $138,977
Interest 49,461 $39,926 $11,661 186,887
---------- ---------- ---------- ----------
49,462 39,926 11,661 325,864
---------- ---------- ---------- ----------
Expenses:
Management services fee 2,350 2,550 907 44,124
Reports to shareholders 17 19 8 347
Registration statement and
prospectus 22 26 11 444
Postage, stationery and
supplies 31 35 14 638
Trustees' fees 8 9 4 154
Auditing and legal fees 9 10 6 132
Custodian fee 46 45 17 1,861
Taxes other than federal
income tax 7 8 4 139
Other expenses 6 6 3 103
---------- ---------- ---------- ----------
2,496 2,708 974 47,942
---------- ---------- ---------- ----------
Net investment income 46,966 37,218 10,687 277,922
---------- ---------- ---------- ----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
ON INVESTMENTS:
Realized gain (loss) before
non-U.S. taxes (11,260) (5,497) - 468,604
Non-U.S. taxes - - - (488)
---------- ---------- ---------- ----------
Net realized gain (loss) (11,260) (5,497) - 468,116
---------- ---------- ---------- ----------
Net change in unrealized
appreciation (depreciation):
Beginning of year (42,565) (25,324) - 497,284
End of year 4,599 12,531 - 1,966,896
---------- -------------- ---------- ----------
-
Net unrealized appreciation 47,164 37,855 - 1,469,612
---------- -------------- ---------- ----------
-
Net realized gain (loss) and
unrealized appreciation
on investments 35,904 32,358 - 1,937,728
---------- -------------- ---------- ----------
-
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS $82,870 $69,576 $10,687 $2,215,650
========= ============== ========= =========
=
</TABLE>
See Notes to Financial Statements
American Variable Insurance Series
FINANCIAL STATEMENTS
<PAGE>
Statement of Changes in Net Assets
for the year ended November 30, 1995
(dollars in thousands)
<TABLE>
<CAPTION>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
- ---------------------------------- -------- -------- -------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $23,635 $40,140 $88,796 $30,480
Net realized gain (loss) on investments 259,039 34,945 160,279 30,610
Net unrealized appreciation
on investments 480,224 83,096 691,459 129,814
-------- -------- -------- ---------
Net increase in net assets
resulting from operations 762,898 158,181 940,534 190,904
-------- -------- -------- ---------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (20,133) (37,537) (85,055) (29,507)
Distributions from net realized
gain on investments (51,801) (44,136) (112,521) (9,640)
-------- -------- -------- ---------
Total dividends and distributions (71,934) (81,673) (197,576) (39,147)
-------- -------- -------- ---------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,348,086; 19,173,422; 13,715,393;
6,084,975; 7,379,725; 6,989,389;
20,995,679 and 88,686,669 shares,
respectively 528,750 254,241 387,075 76,296
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,225,519; 6,335,172; 7,750,200;
3,296,555; 3,356,613; 3,279,414;
937,931 and 27,181,404 shares,
respectively 71,934 81,673 197,576 39,147
Cost of shares repurchased:
4,610,567; 8,773,846; 4,174,136;
2,877,501; 2,819,500; 6,063,251;
24,444,114 and 53,762,915 shares,
respectively (164,548) (113,837) (114,706) (34,878)
Net increase (decrease) in net -------- -------- -------- ---------
assets resulting from capital share
transactions 436,136 222,077 469,945 80,565
-------- -------- -------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,127,100 298,585 1,212,903 232,322
NET ASSETS:
Beginning of year $2,027,341 $1,404,886 $2,740,366 $637,370
-------- -------- -------- ---------
End of year (including
undistributed net investment
income: $8,057; $9,938; $24,939;
$8,506; $12,657; $9,659; $2,486
and $76,242, respectively) $3,154,441 $1,703,471 $3,953,269 $869,692
======== ======== ======== =========
U.S.
Government/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
- ---------------------------------- -------- -------- -------- ---------
OPERATIONS:
Net investment income $ 46,966 $ 37,218 $10,687 $277,922
Net realized gain (loss) on investments (11,260) (5,497) - 468,116
Net unrealized appreciation
on investments 47,164 37,855 - 1,469,612
-------- -------- -------- ---------
Net increase in net assets
resulting from operations 82,870 69,576 10,687 2,215,650
-------- -------- -------- ---------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (44,378) (36,115) (10,344) (263,069)
Distributions from net realized
gain on investments - - - (218,098)
-------- -------- -------- ---------
Total dividends and distributions (44,378) (36,115) (10,344) (481,167)
-------- -------- -------- ---------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,348,086; 19,173,422; 13,715,393;
6,084,975; 7,379,725; 6,989,389;
20,995,679 and 88,686,669 shares,
respectively 99,350 77,672 233,089 1,656,473
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,225,519; 6,335,172; 7,750,200;
3,296,555; 3,356,613; 3,279,414;
937,931 and 27,181,404 shares,
respectively 44,378 36,115 10,344 481,167
Cost of shares repurchased:
4,610,567; 8,773,846; 4,174,136;
2,877,501; 2,819,500; 6,063,251;
24,444,114 and 53,762,915 shares,
respectively (37,940) (67,704) (271,390) (805,003)
Net increase (decrease) in net -------- -------- -------- ---------
assets resulting from capital share
transactions 105,788 46,083 (27,957) 1,332,637
-------- -------- -------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS 144,280 79,544 (27,614) 3,067,120
NET ASSETS:
Beginning of year $389,925 $462,737 $ 220,731 $7,883,356
-------- -------- -------- ---------
End of year (including
undistributed net investment
income: $8,057; $9,938; $24,939;
$8,506; $12,657; $9,659; $2,486
and $76,242, respectively) $534,205 $542,281 $ 193,117 $10,950,476
======== ======== ======== =========
</TABLE>
See Notes to Financial Statements
American Variable Insurance Series
Financial Statements
<PAGE>
Statement of Changes in Net Assets
for the year ended November 30, 1994
(dollars in thousands)
<TABLE>
<CAPTION>
Inter- Growth- Asset
Growth national Income Allocation
Fund Fund Fund Fund
- ---------------------------------- --------- -------- -------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $15,017 $24,404 $71,607 $28,340
Net realized gain (loss) on 52,610 43,558 112,012 9,504
investments
Net unrealized appreciation
(depreciation) on investments (15,930) 21,617 (105,971) (41,610)
--------- -------- -------- ---------
Net increase (decrease) in net
assets resulting from operations 51,697 89,579 77,648 (3,766)
--------- -------- -------- ---------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (14,164) (18,349) (66,032) (27,518)
Distributions from net realized
gain on investments (59,961) (15,818) (83,551) (8,793)
--------- -------- -------- ---------
Total dividends and distributions (74,125) (34,167) (149,583) (36,311)
--------- -------- -------- ---------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,010,480; 43,466,926; 13,134,545;
7,970,745; 6,513,155; 4,821,568;
28,332,973 and 118,250,392 shares,
respectively 448,195 581,497 337,011 92,993
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,334,569; 2,609,004; 5,881,586;
3,143,664; 2,912,711; 3,038,723;
552,766 and 20,473,023 shares,
respectively 74,125 34,167 149,583 36,311
Cost of shares repurchased:
6,590,651; 7,999,702; 4,320,323;
2,577,232; 4,132,973; 6,589,305;
27,641,214 and 59,851,400 shares,
respectively (209,659) (106,589) (110,017) (29,742)
Net increase in net assets --------- -------- -------- ---------
resulting from capital share
transactions 312,661 509,075 376,577 99,562
--------- -------- -------- ---------
TOTAL INCREASE (DECREASE) IN NET 290,233 564,487 304,642 59,485
ASSETS
NET ASSETS:
Beginning of year $1,737,108 $840,399 $2,435,724 $577,885
--------- -------- -------- ---------
End of year (including
undistributed net investment
income: $4,555; $7,823; $21,198;
$7,533; $10,069; $8,556; $2,143
and $61,877, respectively) $2,027,341 $1,404,886 $2,740,366 $637,370
========= ======== ======== =========
U.S.
Government
/
High-Yield AAA-Rated Cash
Bond Securities Management
Fund Fund Fund Total
- ---------------------------------- --------- -------- -------- ---------
OPERATIONS:
Net investment income $ 37,246 $ 32,510 $ 7,112 $ 216,23
Net realized gain (loss) on (27) (2,512) - 215,145
investments
Net unrealized appreciation
(depreciation) on investments (61,207) (53,355) - (256,456)
--------- -------- -------- ---------
Net increase (decrease) in net
assets resulting from operations (23,988) (23,357) 7,112 174,925
--------- -------- -------- ---------
DIVIDENDS AND
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income (34,372) (31,462) (6,080) (197,977)
Distributions from net realized
gain on investments (6,377) (2,925) - (177,425)
--------- -------- -------- ---------
Total dividends and distributions (40,749) (34,387) (6,080) (375,402)
--------- -------- -------- ---------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold:
14,010,480; 43,466,926; 13,134,545;
7,970,745; 6,513,155; 4,821,568;
28,332,973 and 118,250,392 shares,
respectively 93,032 55,095 313,018 1,920,841
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
2,334,569; 2,609,004; 5,881,586;
3,143,664; 2,912,711; 3,038,723;
552,766 and 20,473,023 shares,
respectively 40,749 34,387 6,080 375,402
Cost of shares repurchased:
6,590,651; 7,999,702; 4,320,323;
2,577,232; 4,132,973; 6,589,305;
27,641,214 and 59,851,400 shares,
respectively (57,974) (74,350) (304,971) (893,302)
Net increase in net assets --------- -------- -------- ---------
resulting from capital share
transactions 75,807 15,132 14,127 1,402,941
--------- -------- -------- ---------
TOTAL INCREASE (DECREASE) IN NET 11,070 (42,612) 15,159 1,202,464
ASSETS
NET ASSETS:
Beginning of year $378,855 $505,349 $205,572 $6,680,892
--------- -------- -------- ---------
End of year (including
undistributed net investment
income: $4,555; $7,823; $21,198;
$7,533; $10,069; $8,556; $2,143
and $61,877, respectively) $389,925 $462,737 $220,731 $7,883,356
========= ======== ======== =========
</TABLE>
See Notes to Financial Statements
<PAGE>
Notes to Financial Statements
1. American Variable Insurance Series (the "series") is registered under the
Investment Company Act of 1940 as an open-end, diversified management investment
company with seven different funds. The assets of each fund are segregated, with
each fund accounted for separately. The following paragraphs summarize the
significant accounting policies consistently followed by the series in the
preparation of its financial statements:
Equity-type securities traded on a national securities exchange (or reported on
the NASDAQ national market) and securities traded in the over-the-counter market
are stated at the last reported sales price on the day of valuation; other
securities, and securities for which no sale was reported on that date, are
stated at the last quoted bid price. Bonds and notes are valued at prices
obtained from a bond-pricing service provided by a major dealer in bonds, when
such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean of their representative quoted bid and asked prices or, if such prices are
not available, at prices for securities of comparable maturity, quality and
type. Short-term securities with original or remaining maturities in excess of
60 days are valued at the mean of their quoted bid and asked prices. Short-term
securities with 60 days or less to maturity are valued at amortized cost, which
approximates market value. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith by the
Valuation Committee of the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis. Discounts
on securities purchased are amortized over the life of the respective
securities. The series does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the ex-dividend
date.
Investment securities and other assets and liabilities denominated in non-U.S.
currencies are recorded in the financial statements after translation into U.S.
dollars utilizing rates of exchange on the last business day of the year.
Purchases and sales of investment securities, income and expenses are calculated
using the prevailing exchange rate as accrued. The series does not identify the
portion of each amount shown in the series' statement of operations under the
caption "Realized Gain (Loss) and Unrealized Appreciation on Investments" that
arises from changes in non-U.S. currency exchange rates.
Common expenses incurred by the series are allocated among the funds based upon
relative net assets. In all other respects, expenses are charged to each fund as
incurred on a specific identification basis.
Pursuant to the custodian agreement, each fund within the series receives
credits against its custodian fee for imputed interest on certain balances with
the custodian bank. Custodian fees for the series aggregated $1,861,000, of
which $27,000 was paid by these credits rather than in cash.
2. It is the series' policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required. There was no difference between book and tax realized gains on
securities transactions for the year ended November 30, 1995. The High-Yield
Bond Fund and the U.S. Government/AAA-Rated Securities Fund had available at
November 30, 1995 capital loss carryforwards totaling $9,307,000 and $7,165,000
respectively, which may be used to offset capital gains realized during
subsequent years through November 30, 2003. It is the intention of these funds
not to make distributions from capital gains while there are capital loss
carryforwards. For book and federal income tax purposes, the amounts of
unrealized appreciation and depreciation and the cost of portfolio securities at
November 30, 1995 were as follows:
(dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Asset
Growth Interna- Growth-Income Allocation
Fund tional Fund Fund Fund
Unrealized
appreciation $ 868,821 $ 257,761 $ 869,261 $ 128,961
Unrealized
depreciation 66,385 63,415 38,411 6,796
Net unrealized
appreciation 802,436 194,346 830,850 122,165
Cost of portfolio
securities 2,348,914 1,509,190 3,092,802 743,774
High-Yield U.S. Cash
Government/
Bond AAA-Rated Management
Fund Securities Fund Total
Fund
Unrealized
appreciation $ 15,665 $ 16,770 - $2,157,239
Unrealized
depreciation 11,066 4,239 - 190,312
Net unrealized
appreciation 4,599 12,531 - 1,966,927
Cost of portfolio
securities 528,075 520,482 $203,315 8,946,552
</TABLE>
3. The fees for management services were paid pursuant to an agreement with
Capital Research and Management Company (CRMC), with which certain officers and
Trustees of the series are affiliated. The Investment Advisory and Service
Agreement provides for monthly fees, accrued daily, based on the following
annual rates: Growth Fund - 0.60% of the first $30 million of average net
assets; 0.50% of such assets in excess of $30 million but not exceeding $600
million; 0.45% of such assets in excess of $600 million but not exceeding $1.2
billion; 0.42% of such assets in excess of $1.2 billion but not exceeding $2.0
billion; and 0.37% of such assets in excess of $2.0 billion; Growth-Income Fund
- - 0.60% of the first $30 million of average net assets; 0.50% of such assets in
excess of $30 million but not exceeding $600 million; 0.45% of such assets in
excess of $600 million but not exceeding $1.5 billion; 0.40% of such assets in
excess of $1.5 billion but not exceeding $2.5 billion; and 0.32% of such assets
in excess of $2.5 billion; Asset Allocation Fund - 0.60% of the first $30
million of average net assets; 0.50% of such assets in excess of $30 million but
not exceeding $600 million; and 0.42% of such assets in excess of $600 million;
High-Yield Bond Fund - 0.60% of the first $30 million of average net assets;
0.50% of such assets in excess of $30 million but not exceeding $600 million;
and 0.46% of such assets in excess of $600 million; U.S. Government/AAA-Rated
Securities Fund - 0.60% of the first $30 million of average net assets; 0.50% of
such assets in excess of $30 million but not exceeding $600 million; and 0.40%
of such assets in excess of $600 million; Cash Management Fund - 0.50% of the
first $100 million of average net assets; 0.42% of such assets in excess of $100
million but not exceeding $400 million; and 0.38% of such assets in excess of
$400 million. For the International Fund, the Board of Trustees has approved an
amended Investment Advisory and Service Agreement containing a reduced fee
schedule. Effective December 1, 1994, the amended agreement provides for reduced
fees at the following annual rates: 0.90% of the first $60 million of average
net assets; 0.78% of such assets in excess of $60 million but not exceeding $600
million; 0.60% of such assets in excess of $600 million but not exceeding $1.2
billion; 0.48% of such assets in excess of $1.2 billion but not exceeding $2
billion; and 0.465% of such assets in excess of $2 billion.
Trustees of the series 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
November 30, 1995, aggregate amounts deferred were $50,000.
4. (dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Asset
Growth Interna- Growth-Income Allocation
Fund tional Fund Fund Fund
As of November 30,
1995:
Accumulated
undistributed
net realized
gain (loss) on
investments $258,402 $34,659/1/ $158,883 $30,419
Paid-in capital 2,085,546 1,464,559 2,938,597 708,602
For the year
ended November 30,
1995:
Purchases of
investment
securities/2/ 890,949 375,683 867,384 340,041
Sales of invest-
ment securities/2/ 789,487 294,525 763,232 280,803
High-Yield U.S. Cash
Government/
Bond AAA-Rated Management
Fund Securities Fund Total
Fund
As of November 30,
1995:
Accumulated
undistributed
net realized
gain (loss) on
investments $(11,357) $(8,139) - $462,867
Paid-in capital 528,306 528,230 $190,631 8,444,471
For the year
ended November 30,
1995:
Purchases of
investment
securities/2/ 224,774 202,086 - 2,900,917
Sales of invest-
ment securities/2/ 138,132 128,005 - 2,394,184
</TABLE>
/1/ The fund reclassified permanent book and tax differences relating to
shareholder
distributions of $488,000 from undistributed net investment income to
undistributed net
realized gains for the year ended November 30, 1995.
/2/Excludes short-term securities.
5. Dividend and interest income for the International Fund is recorded net of
non-U.S. taxes paid. For the year ended November 30, 1995, such non-U.S. taxes
were $3,803,000. Net realized currency losses on dividends, interest, and
withholding taxes reclaimable were $35,000 for the year ended November 30,
1995.
<PAGE>
PER-SHARE
DATA AND
RATIOS
<TABLE>
<CAPTION>
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ------ --------- -------- --------- --------- --------- ---------
-
<S> <C> <C> <C> <C> <C> <C> <C>
GROWTH FUND
1991 $19.98 $ .41 $4.48 $4.89 $(.47) $(.22)
1992 24.18 .29 4.25 4.54 (.31)1/1/ -
1993 28.41 .25 4.13 4.38 (.24) (.21)
1994 32.34 .24 .69 .93 (.24) (1.09)
1995 31.94 .33 10.63 10.96 (.29) (.80)
Ratio
Net asset Net assets, of net
Total value, end of expenses income to Portfolio
distri- end of Total year (in to average average turnover
butions year return millions) net assets net assets rate
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(.69) $24.18 24.90% $ 700 .56% 1.94% 9.83%
1992 (.31) 28.41 18.90 1,212 .53 1.15 11.15
1993 (.45) 32.34 15.59 1,737 .50 .86 20.40
1994 (1.33) 31.94 2.92 2,027 .49 .78 29.58
1995 (1.09) 41.81 35.35 3,154 .47 .92 35.47
INTERNATIONAL FUND
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ----- --------- -------- --------- --------- --------- ---------
-
1991 $9.45 $ .22 $.59 $.81 $(.24) -
1992 10.02 .19 (.09) .10 (.21) $(.02)
1993 9.89 .17 2.50 2.67 (.16) -
1994 12.40 .25 1.04 1.29 (.20) (.22)
1995 13.27 .34 1.02 1.36 (.33) (.41)
Ratio
Net asset Net assets, of net
Total value, end of expenses income to Portfolio
distri- end of Total year (in to average average turnover
butions year return millions) net assets net assets rate
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(.24) $10.02 8.67% $197 1.04% 2.62% 8.21%
1992 (.23) 9.89 .90 360 1.00 2.11 16.73
1993 (.16) 12.40 27.20 840 .96 1.75 17.70
1994 (.42) 13.27 10.48 1,405 .80 2.03 19.66
1995 (.74) 13.89 10.78 1,703 .75 2.64 24.66
GROWTH-INCOME FUND
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ------ --------- -------- --------- --------- --------- ---------
-
1991 $19.23 $ .75 $2.63 $3.38 $(.79) $(.10)
1992 21.72 .65 2.74 3.39 (.67) (.27)
1993 24.17 .63 2.12 2.75 (.63) (.28)
1994 26.01 .68 .14 .82 (.65) (.88)
1995 25.30 .73 7.20 7.93 (.73) (1.03)
Ratio
Net asset Net assets, of net
Total value, end of expenses income to Portfolio
distri- end of Total year (in to average average turnover
butions year return millions) net assets net assets rate
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(.89) $21.72 17.83% $1,022 .56% 3.80% 11.14%
1992 (.94) 24.17 15.90 1,704 .52 3.01 13.60
1993 (.91) 26.01 11.63 2,436 .49 2.66 24.93
1994 (1.53) 25.30 3.21 2,740 .47 2.72 29.26
1995 (1.76) 31.47 33.14 3,953 .44 2.70 26.91
ASSET ALLOCATION FUND
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ------ --------- -------- --------- --------- --------- ---------
-
1991 $9.50 $ .53 $1.11 $1.64 $(.55) -
1992 10.59 .48 .94 1.42 (.49) $ (.05)
1993 11.47 .51 .67 1.18 (.49) (.15)
1994 12.01 .51 (.57) (.06) (.52) (.18)
1995 11.25 .50 2.69 3.19 (.50) (.17)
RATIO
NET ASSET NET ASSETS, OF NET
TOTAL VALUE, END OF EXPENSES INCOME TO PORTFOLIO
DISTRI- END OF TOTAL YEAR (IN TO AVERAGE AVERAGE TURNOVER
BUTIONS YEAR RETURN MILLIONS) NET ASSETS NET ASSETS RATE
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(.55) $10.59 17.63% $194 .59% 5.56% 15.08%
1992 (.54) 11.47 13.69 359 .57 4.73 19.74
1993 (.64) 12.01 10.59 578 .55 4.66 19.01
1994 (.70) 11.25 (.54) 637 .53 4.55 36.13
1995 (.67) 13.77 29.45 870 .52 4.11 39.89
HIGH-YIELD BOND FUND
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ------ --------- -------- --------- --------- --------- ---------
-
1991 $11.83 $1.17 $1.78 $2.95 $(1.25) -
1992 13.53 1.10 .62 1.72 (1.08) -
1993 14.17 1.09 1.20 2.29 (1.10) $ (.19)
1994 15.17 1.27 (2.07) (.80) (1.23) (.25)
1995 12.89 1.32 1.10 2.42 (1.32) -
Ratio
Net asset Net assets, of net
Total value, end of expenses income to Portfolio
distri- end of Total year (in to average average turnover
butions year return millions) net assets net assets rate
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(1.25) $13.53 26.22% $107 .63% 9.81% 18.07%
1992 (1.08) 14.17 13.14 197 .59 8.88 47.44
1993 (1.29) 15.17 17.09 379 .56 8.18 34.05
1994 (1.48) 12.89 (5.71) 390 .54 9.37 38.46
1995 (1.32) 13.99 19.81 534 .54 10.12 31.73
U.S. GOVERNMENT/AAA-RATED SECURITIES FUND
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ------ --------- -------- --------- --------- --------- ---------
-
1991 $10.66 $ .77 $ .58 $1.35 $(.79) -
1992 11.22 .75 .32 1.07 (.76) -
1993 11.53 .74 .68 1.42 (.75) $ (.05)
1994 12.15 .76 (1.30) (.54) (.74) (.07)
1995 10.80 .82 .71 1.53 (.81) -
Ratio
Net asset Net assets, of net
Total value, end of expenses income to Portfolio
distri- end of Total year (in to average average turnover
butions year return millions) net assets net assets rate
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(.79) $11.22 13.24% $240 .58% 7.91% 27.06%
1992 (.76) 11.53 9.83 360 .57 7.08 39.96
1993 (.80) 12.15 12.65 505 .55 6.42 21.69
1994 (.81) 10.80 (4.58) 463 .54 6.69 45.21
1995 (.81) 11.52 14.73 542 .54 7.37 30.11
CASH MANAGEMENT FUND
Net realized Total Distri-
& unrealized income Dividends butions
Net asset Net gain from from net from
Year value, invest- (loss) on invest- invest- net
ended beginning ment invest- ment ment realized
11/30 of year income ments operations income gains
- ------ --------- -------- --------- --------- --------- ---------
-
1991 $11.14 $ .62 $.01 $.63 $(.66) -
1992 11.11 .35 .01 .36 (.43) -
1993 11.04 .29 - .29 (.31) -
1994 11.02 .37 .02 .39 (.32) -
1995 11.09 .63 (.02) .61 (.59) -
Ratio
Net asset Net assets, of net
Total value, end of expenses income to Portfolio
distri- end of Total year (in to average average turnover
butions year return millions) net assets net assets rate
--------- -------- --------- --------- --------- --------- ---------
-
1991 $(.66) $11.11 5.84% $163 .58% 5.65% -
1992 (.43) 11.04 3.31 197 .53 3.24 -
1993 (.31) 11.02 2.67 206 .51 2.57 -
1994 (.32) 11.09 3.59 221 .49 3.60 -
1995 (.59) 11.11 5.65 193 .49 5.37 -
</TABLE>
/1/ Amount includes net realized short-term gains treated as net investment
income for federal income tax purposes.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- -----------------------------------------------------------------
To the Board of Trustees and Shareholders of
American Variable Insurance Series
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of the Growth Fund, the International
Fund, the Growth-Income Fund, the Asset Allocation Fund, the High-Yield Bond
Fund, the U.S. Government/AAA-Rated Securities Fund and the Cash Management Fund
(constituting the American Variable Insurance Series, hereafter referred to as
the "Series") at November 30, 1995, the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the two
years in the period then ended, and the per-share data and ratios for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements and per-share data and ratios
(hereafter referred to as "financial statements") are the responsibility of the
Series' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above
PRICE WATERHOUSE LLP
Los Angeles, California
January 5, 1996
<PAGE>
AMERICAN VARIABLE INSURANCE SERIES
BOARD OF TRUSTEES
CHARLES H. BLACK
Pacific Palisades, California
Private investor and consultant; former Executive Vice President and Director,
KaiserSteel Corporation
H. FREDERICK CHRISTIE
Rolling Hills Estates, California
Private investor; former President and
Chief Executive Officer,
The Mission Group;
former President, Southern California Edison Company
JOE E. DAVIS
Encino, California
Private investor; former Chairman of the Board, Linear Corporation; former
President and Chief Executive Officer, National Health Enterprises, Inc.
MARTIN FENTON, JR.
San Diego, California
Chairman of the Board, Senior Resource Group, Inc. (senior living centers
management)
RICHARD H.M. HOLMES
Hillsborough, California
Retired; former Vice President,
Capital Research and Management Company
MARY MYERS KAUPPILA
Boston, Massachusetts
Founder and President,
Energy Investment, Inc.
JAMES F. ROTHENBERG
Los Angeles, California
President of the series
President and Director,
Capital Research and Management Company
THOMAS E. TERRY
Los Angeles, California
Chairman of the Board of the series
Consultant; former Vice President and Secretary,
Capital Research and Management Company
LEONARD WEIL retired from the Board of Trustees effective December 31, 1995. He
had been a member of the Board since 1991. The Trustees thank him for his
valuable contributions to the series.
OTHER OFFICERS
JAMES K. DUNTON
Los Angeles, California
Senior Vice President of the series
Senior Vice President and Director,
Capital Research and Management Company
ABNER D. GOLDSTINE
Los Angeles, California
Senior Vice President of the series
Senior Vice President and Director,
Capital Research and Management Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President of the series
Senior Vice President - Fund Business Management Group,
Capital Research and Management Company
CLAUDIA P. HUNTINGTON
San Antonio, Texas
Vice President of the series
Senior Vice President,
Capital Research Company
STEVEN N. KEARSLEY
Brea, California
Vice President of the series
Vice President and Treasurer,
Capital Research and Management Company
DINA N. PERRY
Washington, D.C.
Vice President of the series
Vice President,
Capital Research and Management Company
JOHN H. SMET
Los Angeles, California
Vice President of the series
Vice President,
Capital Research and Management Company
CHAD L. NORTON
Los Angeles, California
Secretary of the series
Vice President - Fund Business Management Group,
Capital Research and Management Company
ROBERT P. SIMMER
Norfolk, Virginia
Treasurer of the series
Vice President - Fund Business Management Group,
Capital Research and Management Company
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 92621-5804
CUSTODIAN OF ASSETS
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02105-1713
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
This report is for the information of American Variable Insurance Series
investors, but it may also be used as sales literature when preceded or
accompanied by the current prospectus for American Variable Insurance Series and
the prospectus for the applicable insurance contract, which give details about
charges, expenses, investment objectives and operating policies. If used as
sales material after March 31, 1996, this report must be accompanied by an
American Legacy II Statistical Update for the most recently completed calendar
quarter.
Litho in USA AGD/GRS/2861
(C)1996 American Funds Distributors, Inc.
Lit. No. VI-011-0196
American Variable Insurance Series
