SteinRoe Variable Investment Trust
Capital Appreciation Fund
Managed Growth Stock Fund
Strategic Managed Assets Fund
Managed Assets Fund
Managed Income Fund
Mortgage Securities Income Fund
Cash Income Fund
Semi-Annual Report
June 30, 1995
<PAGE>
TABLE OF CONTENTS
President's Letter 1
Portfolio Manager's Discussion:
Capital Appreciation Fund 2
Managed Growth Stock Fund 3
Strategic Managed Assets Fund 4
Managed Assets Fund 5
Managed Income Fund 6
Mortgage Securities Income Fund 7
Cash Income Fund 8
Financial Statements:
Capital Appreciation Fund 9
Managed Growth Stock Fund 14
Strategic Managed Assets Fund 19
Managed Assets Fund 23
Managed Income Fund 30
Mortgage Securities Income Fund 35
Cash Income Fund 41
Notes to Financial Statements 44
<PAGE>
PRESIDENT'S LETTER
SteinRoe Variable Investment Trust
Dear Fellow Contract Owner:
We are pleased to report to you on the activities of the SteinRoe
Variable Investment Trust for the period ended June 30, 1995. This was a
period of moderate growth for the Trust, as net assets increased to
approximately $697 million.
The Portfolio Managers' discussions, which follow this letter, review the
investment operations of each Fund and the factors that materially affected
its performance in the first half of 1995. For comparable performance
information at the contract level, please contact your life insurance company.
We have seen many of our Contract Owners allocate monies to more than one
of the Funds to diversify their contract value. As a result, we continue to
present the financial reports in a single, consolidated document. We hope you
find this helpful and convenient.
Thank you for investing in the SteinRoe Variable Investment Trust.
Sincerely,
Richard R. Christensen
President
SteinRoe Variable Investment Trust
Month day, 1995
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Capital Appreciation Fund
Dear Contract Owner:
For the six-month period ended June 30, 1995, the Fund's total return lagged
the general market indices, declining 1.97 percent, compared to a 14.42
percent gain for the Russell 2000 and a 20.19 percent gain for the S&P 500*.
The principal reason the Fund lagged the market was the underperformance of
its smaller-cap domestic stocks and non-U.S. holdings. In addition, the Fund
did not participate as strongly in the rally by technology stocks, which
helped to drive the performance of the Russell 2000. Although the small-cap
and overseas stock market sectors have been a drag on the Fund's performance
during the past six months, we should remember these same two sectors helped
the Fund achieve the number one performance ranking in its peer group during
1992-1993.
As of June 30, the Fund, which focuses primarily on small and medium-sized
companies, had 82 percent of its portfolio invested in stocks with market caps
of less than $500 million, 7 percent in stocks between $500 million and $1
billion, and 11 percent in stocks with market caps of more than $1 billion.
The median market cap of the stocks in the portfolio was $220 million. Small
stocks, as a group, tend to move in and out of market popularity; however, we
believe that a well-chosen group of small company stocks can generally achieve
a higher relative rate of return than large-cap companies over a period of
years. As a result, we believe the Fund is best suited for investors with
long-term time horizons of three to five years. The Fund's total annualized
return for the three-year period ending June 30, 1995, was 17.7 percent,
compared to 16.5 percent for the Russell 2000 and 13.2 percent for the S&P
500.
After lagging the market's performance during the past six months, we
implemented a three-point plan:
(1) We are concentrating on the stocks that we know best, reducing the number
of issues in the Fund from 76 to 60;
(2) Since overseas markets have been more volatile than we expected, we are
increasing the quality and visibility of our overseas holdings; and
(3) We've reduced the equity ratio from 93 percent to 90 percent by selling
several stocks that we judged to be overpriced.
Our top ten holdings, which are all domestic and represented 34 percent of the
portfolio at June 30, are performing reasonably well and remain broadly
diversified. For the period, they experienced average price appreciation of
21 percent. We believe they remain well financed and ably managed with rising
earnings.
<PAGE>
Our three-point plan will result in a reduced number of small-cap and
international holdings in the Fund, while increasing its exposure to domestic
mid-cap stocks. There is no change in our direct research effort: We will
continue to focus on evaluating company management and identifying what we
believe are large market opportunities.
E. Bruce Dunn, Richard B. Peterson, Portfolio Managers
Line Chart:
SteinRoe Variable Investment Trust
Capital Appreciation Fund and S&P 500
Performance of a Hypothetical $10,000 Investment January 1, 1989 to June 30,
1995
Average Annual Total Return
at June 30, 1995
1 Year 5 Year Inception
6.34% 11.69% 15.12%
<TABLE>
<CAPTION>
Date Capital Appreciation Fund S&P 500 Index
<S> <C> <C>
1/89 10,000 10,000
12/89 13,083 13,159
12/90 11,917 12,750
12/91 16,356 16,618
12/92 18,724 17,883
12/93 25,405 19,677
12/94 25,474 19,927
6/30/95 24,972 23,942
Performance numbers reflect all Fund net expenses, but do not include any
insurance charges imposed by your insurance company's separate accounts or
certain expenses reimbursed by the Adviser and the Administrator. If
performance information included the effect of these additional amounts, it
would be lower.
</TABLE>
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Managed Growth Stock Fund
Dear Contract Owner:
During the six-month period ended June 30, 1995, Managed Growth Stock Fund
underperformed the S&P 500, posting a gain of 18.00 percent, versus a gain of
20.19 percent for the S&P.* The S&P's return reflected a continued rally by
the technology sector--led, in particular, by semiconductor and semiconductor
equipment companies. Although the Fund maintains a significant technology
exposure (more than 20 percent at June 30), its holdings are concentrated in
the more conservative technology services companies. The rally in
semiconductor stocks has been so powerful that even our significant weighting
in the technology sector did not allow us to keep up with the performance of
the S&P.
We did not make any meaningful shifts in industry exposure during the past six
months. Technology remained the Fund's best performing sector, and our outlook
for these stocks remains positive. Also of note was the strong performance of
the Fund's financial services holdings, which benefited from the slowing
economy and decreasing pressure on interest rates.
We added several positions during the period, including AirTouch
Communications, MBNA Corp., Fluor Corp., Schlumberger Ltd., and Hercules. We
eliminated several positions, including PepsiCo, which has been plagued by
problems in its restaurant sector; Elan, an Irish-based pharmaceutical company
experiencing difficulty with its new product pipeline; China Light & Power, a
Hong Kong-based utility company negatively affected by slowing growth in its
home markets, as well as problems with a new power plant it was bringing
on-line; Duracell, whose European operations were weak; Barnes & Noble, a
bookstore chain facing increasing competition; and finally, to reduce our
exposure in the Hong Kong/S.E. Asia corridor, we sold Hong Kong Telecom.
We remain invested in what we believe are the 50 best high-quality, large-cap
growth stocks available. The Fund continues to focus on three main investment
themes. First, we invest in companies that can generate a significant portion
of their revenues overseas. As foreign markets become increasingly integrated,
the demand for the brand name products and services these companies offer
should continue to grow. Second, we maintain a significant exposure in
technology and information companies. This area--especially the cellular
sector--continues to enjoy increasing global demand. Finally, we've been
concentrating on the rapidly growing outsourcing industry.
Although the stock market has experienced a strong rally to date in 1995, we
remain cautiously optimistic about equity prices going forward. While we
believe slower economic growth may squeeze the gain in corporate profits,
lower interest rates and a stronger dollar should help sustain many growth
stocks.
Also, as the U.S. dollar strengthens, we expect many foreign buyers--who have
been noticeably absent from the U.S. stock market recently--to make an
aggressive return, which should help to stimulate the market.
Erik P. Gustafson, Harvey B. Hirschhorn,
Portfolio Managers
<PAGE>
Line chart:
SteinRoe Variable Investment Trust
Managed Growth Stock Fund and S&P 500
Performance of a Hypothetical $10,000 Investment January 1, 1989 to June 30,
1995
Average Annual Total Return
at June 30, 1995
1 Year 5 Year Inception
21.77% 10.03% 14.15%
<TABLE>
<CAPTION>
Date Managed Growth Stock Fund S&P 500 Index
<S> <C> <C>
1/89 10,000 10,000
12/89 13,130 13,159
12/90 12,913 12,750
12/91 19,115 16,618
12/92 20,382 17,883
12/93 21,395 19,677
12/94 20,036 19,927
6/30/95 23,642 23,942
Performance numbers reflect all Fund net expenses, but do not include any
insurance charges imposed by your insurance company's separate accounts or
certain expenses reimbursed by the Adviser and the Administrator. If
performance information included the effect of these additional amounts, it
would be lower.
</TABLE>
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Strategic Managed Assets Fund
Dear Contract Owner:
For the six-month period ended June 30, 1995, the Fund's return of 15.78
percent lagged the 20.19 percent return of the S&P 500.* The S&P's return
reflected the continued strength of the equity market. The Fund, however, was
fully invested in fixed income securities during the six-month period. While
fixed income securities enjoyed strong performance during the period, they did
not rally to the same extent as equity securities. Importantly, the Fund did
significantly outpace its Lipper peer group median, placing in the top 15th
percentile.
We responded to changes in the bond market--including a drop in interest rates
and rally in bond prices--by reallocating the Fund's portfolio. We shifted out
of long-term bonds completely, replacing them with intermediate-term bonds and
cash. This shift not only helped to contain volatility, but provided continued
solid performance as interest rates rose after the shifts. The Fund's weighted
average adjusted duration fell from 9.9 years to 5.4 years, while its weighted
average maturity plummeted from 26.5 years at the end of the first quarter to
7.4 years at the end of the six-month period. The Fund's weighted average
current yield fell from 7.86 percent to 6.48 percent. The Fund currently
divides its bond investments between U.S. Treasury bonds, at 58 percent, and
AAA/Agency bonds, at 42 percent.
The Fund remains fully invested in fixed income securities, reflecting our
belief that, as interest rates are steady to downward, the fixed income market
will outperform equities. Although we expect to see some short-term price
volatility in the bond market, we believe the Fund is well positioned to take
advantage of further Fed easing. If rates fall materially, however, we plan to
shift additional assets from intermediate-term bonds to cash.
Harvey B. Hirschhorn, Erik P. Gustafson,
Portfolio Managers
<PAGE>
Line Chart:
SteinRoe Variable Investment Trust
Strategic Managed Assets Fund and S&P 500
Performance of a Hypothetical $10,000 Investment May 1, 1989 (commencement of
operations) to June 30, 1995
Average Annual Total Return
at June 30, 1995
1 Year 5 Year Inception
19.83% 9.56% 12.33%
<TABLE>
<CAPTION>
Date Strategic Managed Assets Fund S&P 500 Index
<S> <C> <C>
5/89 10,000 10,000
12/89 12,119 11,687
12/90 11,086 11,324
12/91 15,354 14,760
12/92 17,355 15,883
12/93 17,690 17,476
12/94 17,685 17,698
6/30/95 20,476 21,264
Performance numbers reflect all Fund net expenses, but do not include any
insurance charges imposed by your insurance company's separate accounts or
certain expenses reimbursed by the Adviser and the Administrator. If
performance information included the effect of these additional amounts, it
would be lower.
</TABLE>
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Managed Assets Fund
Dear Contract Owner:
For the six-month period ended June 30, 1995, Managed Assets Fund posted a
gain of 14.12 percent, versus a 20.19 percent gain for the S&P 500.* The Fund
did, however, outperform its peer group, placing in the 42nd percentile. The
Fund's underperformance relative to the S&P can be linked to three primary
factors: its defensive posture; weak performance by some of its holdings,
particularly natural gas and REITs; and an underweighting in technology.
We maintained a consciously strong defensive position during the period.
Because the economy was growing rapidly and interest rates were much higher,
we believed that, had the economy failed to slow, stock prices would have come
under severe pressure from rising interest rates. We were willing to sacrifice
some performance potential in order to protect capital. Fixed income
securities and cash, which made up approximately 30 percent of the portfolio
at June 30, posted returns considerably below the S&P 500. Bonds, as measured
by the Lehman Corporate/Government Index, returned 13.80 percent for the
period, and cash, as measured by the 90-day T-Bill Index, returned 2.87
percent.
Many of the Fund's traditional defensive industry groups, such as natural gas
and REITs, performed poorly during the period. Adding to the Fund's
underperformance was an underweighting in the technology sector, which did
especially well during the period. Few technology stocks fit our low p/e
profile.
We made a number of changes during the period to allow the Fund to more fully
participate in the market, should it continue to rally. In the past, we've
purchased issues to limit downside risk, in case of a market decline. Toward
the end of the reporting period, however, we added several positions that we
believe are slightly more aggressive. These include WMX Technologies,
Materials Science Corp., Xerox, and Frontier Corp. We also added to our bank
holdings by purchasing half commitments in two banks that we believe are prime
candidates for acquisition: Mercantile Bank and Bank of Boston.
Our defensive posture was clearly too conservative in light of the markets'
actions over the first six months of 1995. We find it improbable, however,
that the market will continue to forge ahead at the same pace during the rest
of the year. A slowdown in the market, which will certainly occur at some
point, or a renewed interest in some of the lagging sectors (such as REITs),
would benefit the Fund, and should lead to a period of outperformance.
Robert A. Christensen, Portfolio Manager
<PAGE>
Line Chart:
SteinRoe Variable Investment Trust
Managed Assets Fund and S&P 500
Performance of a Hypothetical $10,000 Investment January 1, 1989 to June 30,
1995
Average Annual Total Return
at June 30, 1995
1 Year 5 Year Inception
14.44% 9.83% 11.42%
<TABLE>
<CAPTION>
Date Managed Assets Fund S&P 500 Index
<S> <C> <C>
1/89 10,000 10,000
12/89 12,238 13,159
12/90 12,154 12,750
12/91 15,549 16,618
12/92 16,720 17,883
12/93 18,273 19,677
12/94 17,690 19,927
6/30/95 20,195 23,942
Performance numbers reflect all Fund net expenses, but do not include any
insurance charges imposed by your insurance company's separate accounts or
certain expenses reimbursed by the Adviser and the Administrator. If
performance information included the effect of these additional amounts, it
would be lower.
</TABLE>
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Managed Income Fund
Dear Contract Owner:
For the six-month period ended June 30, 1995, Managed Income Fund posted a
return of 12.51 percent, versus a 13.80 percent return for the Lehman
Corporate Bond Index. The Fund's return placed it just ahead of the median
return of 11.82 for its Lipper corporate bond peer group.*
The Fund's underperformance relative to the Lehman Corporate Bond index can be
linked, in part, to the fact that this Lehman Index includes a mix of long-
and intermediate-term securities, while the Fund focuses primarily on
intermediate-term securities. In addition, the Fund maintained a slightly
shorter duration than did the Index. A bond rally, such as the powerful rally
by Treasuries during the second quarter, tends to shorten a fund's duration.
And, while we were able to lengthen our duration to 5.23 by the end of the
quarter, for much of the quarter, we were will below the Index duration of
5.7.
With the powerful rally in the Treasury market and the yield on the benchmark
long-term bond rocketing to 7.8 percent, this has been a good year for bonds.
We scored particularly well during the Treasury rally, since we were heavily
weighted in 10-year Treasury securities, the rally's strongest performer. In
addition, our holdings of Yankee bonds -- dollar-denominated bonds issued in
the United States by foreign banks and corporations -- performed well during
the rally, as they provide slightly higher yield than Treasuries.
That positive impact was hindered, however, by a widening of spreads, in both
high-grade and below investment-grade securities, relative to the Treasury
market. This spread widening was driven by a number of factors: recession
fears, which tend to spur spreads to widen; an increase in issuance as issuers
took advantage of lower interest rates; and buyer protest to the tighter
spreads of the first quarter, which drove a buildup in dealer inventory and a
subsequent reduction in prices. The higher coupons of some of our high-yield
bonds, however, mitigated somewhat the negative effect of this widening in
spreads.
Economic growth, right in step with the Federal Reserve's plan for a soft
landing, slowed to a crawl during the first and second quarters of 1995. We
believe that slow economic growth can easily slip into recession, so in
January we began paring back our holdings of securities in cyclical industries
and began investing more defensively -- buying the securities of companies
that would be able to withstand a possible recession, a focus we maintained
throughout the past six months.
The Fund's more neutral duration should allows us to respond very quickly --
moving duration either higher or lower -- to changes in the economic
environment. While we expect interest rates to either stabilize or to continue
to decline, recent data have been mixed, with stronger-than-expected corporate
earnings indicating that the economy is still growing at a good pace. As a
result, we do not plan any significant changes to the portfolio in the near
term.
Ann H. Benjamin, Portfolio Manager
<PAGE>
Line Chart
SteinRoe Variable Investment Trust
Managed Income Fund and Lehman Corporate Bond Index
Performance of a Hypothetical $10,000 Investment February 1, 1993
(commencement of operations) to June 30, 1995
Average Annual Total Return
at June 30, 1995
1 Year Inception
12.61% 6.53%
<TABLE>
<CAPTION>
Date Managed Income Fund Lehman Corporate Bond Index
<S> <C> <C>
2/93 10,000 10,000
12/93 10,832 10,959
12/94 10,356 10,529
6/30/95 10,652 11,982
Performance numbers reflect all Fund net expenses, but do not include any
insurance charges imposed by your insurance company's separate accounts or
certain expenses reimbursed by the Adviser and the Administrator. If
performance information included the effect of these additional amounts, it
would be lower.
</TABLE>
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Mortgage Securities Income Fund
Dear Contract Owner:
For the six-month period ended June 30, 1995, the Fund's return of 9.69
percent trailed the return on the Lehman Mortgage-backed Securities index of
10.73 percent.* The Fund's underperformance was driven primarily by a duration
that was slightly lower than the index -- given the sharp drop in interest
rates since November 1994, the Fund's lower duration caused the Fund to
appreciate less than the Index.
The Fund's sector allocation remained stable during the first half of 1995. We
maintained a heavy emphasis on mortgage-backed securities, which represent
approximately 90 percent of the Fund. For the first time, we added GNMA
adjustable rate mortgages (ARMs) to our holdings -- the sharp rise in
volatility during the second quarter made these securities attractive. Our
current holdings in these securities represent roughly 5 percent of the
portfolio, and we will add to that position if appropriate. The Fund's
adjusted duration, a measure of price volatility, declined from 4.0 to 3.4
during the quarter, as a result of expectations of rising prepayments.
We expect to maintain the Fund's current weighting in mortgages because we
believe the market is unduly concerned about prepayment and supply. As
investors realize that prepayments will not rise to levels close to those
experienced in 1993, investors will begin to gradually add to their mortgage
holdings and mortgages will outperform Treasuries.
The mortgage market also could perform well if interest rates stabilize. The
mortgage market generally performs poorly relative to Treasuries when the
markets are volatile, as they were in the second quarter. While the biggest
risk to the mortgage market at this point is another sharp drop in rates --
which would lead to a surge in prepayments -- we do not expect long-term rates
to decline much more over the next six to twelve months.
Michael T. Kennedy, Portfolio Manager
<PAGE>
Line Chart
SteinRoe Variable Investment Trust
Mortgage Securities Income Fund and Lehman Mortgage-Backed Securities Index
Performance of a Hypothetical $10,000 Investment January 1, 1989 to June 30,
1995
Average Annual Total Return
at June 30, 1995
1 Year 5 Year Inception
10.80% 8.14% 8.65%
<TABLE>
<CAPTION>
Date Mortgage Securities Income Fund Lehman Mortgage-Backed
Securities Index
<S> <C> <C>
12/88 10,000 10,000
12/89 11,284 11,535
12/90 12,311 12,772
12/91 14,093 14,779
12/92 14,932 15,808
12/93 15,867 16,889
12/94 15,618 16,617
6/30/95 17,150 18,400
</TABLE>
<PAGE>
PORTFOLIO MANAGER'S DISCUSSION
SteinRoe Variable Investment Trust Cash Income Fund
Dear Contract Owner:
For the six-month period ended June 30, 1995, the Fund's total return of 2.79
percent ranked it just above the median of its Lipper money market fund peer
group, which posted a return of 2.76 percent.*
Any movement in short-term interest rates will have a roughly corresponding
effect on a money market fund's seven-day yield. After a year of Federal
Reserve tightening aimed at cooling the torrid economic growth of 1994,
interest rates began to drift lower during the first half of 1995 as growth
slowed and investors began to assume that the Fed would begin easing interest
rates. Consequently, yield on the Fund fell to 5.35 percent by June 30, 1995.
The Fund's performance was positively affected during the past six months by
our holdings of longer-term securities. When interest rates began to drift
down early in the first quarter, we sought to lock in the previous, higher
rates by purchasing fixed-rate notes and extending our maturity slightly, from
36.6 days on December 31, 1994, to 38 days on June 30. The purchase of a
one-year callable Yankee CD at 6.62 percent also positively affected
performance.
Shortly after this six-month reporting period closed, the Federal Reserve made
a cautious, quarter-point easing move. History suggests that when the Federal
Reserve makes a move, up or down, it will follow with a similar move shortly
after. So, while it's possible that the Federal Reserve will move to ease
rates again, recent data -- including stronger-than-expected employment
numbers reported early in July 1995 -- indicate that the economy just isn't
slow enough to warrant a second move. As a result, we're maintaining a
cautious position, keeping our maturity in neutral range that will allow us to
respond quickly to changes either in the yield curve or the economy.
Jane M. Naeseth, Portfolio Manager
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Capital Appreciation Fund / June 30, 1995
(Unaudited)
<CAPTION>
Market
Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCKS--(89.3%)
Automotive--(3.3%)
Stant Corporation 80,000 $ 840,000
Tower Automotive, Inc. (a) 325,000 3,412,500
-----------
4,252,500
----------
Banks/Savings and Loans--(2.8%)
Belize Holdings, Inc. 161,916 2,570,417
Rancho Santa Fe National Bank (a) 110,000 396,000
Southern National Corporation 30,000 720,000
-----------
3,686,417
----------
Broadcasting--(1.3%)
Grupo Radio Centro ADSs 186,000 1,697,250
-----------
Business Services--(12.2%)
Danka Business Systems Plc ADRs 95,000 2,297,813
G & K Services Cl. A 246,000 4,797,000
Interim Services, Inc. (a) 170,000 4,250,000
Unitog Company 213,000 4,606,125
-----------
15,950,938
-----------
Chemicals--(2.2%)
Jilin Chemical Industrial Company
Ltd. ADSs (a) 150,000 2,887,500
-----------
Computers/Business Equipment--(1.9%)
Daktronics, Inc. (a) 85,300 490,475
MTI Technology (a) 557,500 1,498,281
Zytec Corp. (a) 85,000 552,500
-----------
2,541,256
-----------
<PAGE>
Computer Services--(2.8%)
Keane, Inc. (a) 145,000 3,606,875
-----------
Consumer Products--(0.2%)
Kimberly-Clark de Mexico 20,000 228,697
-----------
Electronics--(5.0%)
Kent Electronics Corp. (a) 102,750 3,891,656
Littlefuse, Inc. (a) 25,000 782,813
Sheldahl Co. (a) 144,000 1,908,000
-----------
6,582,469
-----------
Food/Beverage/Tobacco--(3.8%)
Northland Cranberries, Inc. 163,500 2,329,875
Quilmes Industrial, Inc. 134,000 2,613,000
-----------
4,942,875
-----------
<PAGE>
<CAPTION>
Market
Shares Value
--------- ----------
<S> <C> <C>
Health Care--(11.0%)
American Medical Response Co. (a) 105,000 $ 2,940,000
AmeriSource Distribution
Corporation (a) 115,700 2,639,407
HealthPlan Services Corporation (a) 122,200 1,848,275
National Dentex Corp. (a) 130,200 1,725,150
PACE Health Management
Systems, Inc. (a) 100,000 487,500
Patterson Dental Corporation (a) 205,000 4,868,750
-----------
14,509,082
-----------
Industrial Products--(2.9%)
Arden Industrial Products (a) 143,000 1,179,750
Furon Company 95,000 2,090,000
Strategic Distribution, Inc. (a) 135,000 573,750
-----------
3,843,500
-----------
Insurance--(8.9%)
Emphesys Financial Group 55,000 1,299,375
National Mutual of Asia 3,200,000 2,047,887
Protective Life Corporation (a) 50,000 1,362,500
Triad Guaranty, Inc. (a) 194,600 4,086,600
20th Century Industries, Inc. 224,000 2,800,000
-----------
11,596,362
-----------
Media/Broadcasting--(1.2%)
Valuevision International, Inc. (a) 340,000 1,551,250
-----------
Medical Equipment--(4.5%)
Arjo 75,000 661,248
Stryker Corporation 68,000 2,609,500
Sunrise Medical, Inc. (a) 85,000 2,645,625
-----------
5,916,373
-----------
<PAGE>
Miscellaneous--(1.2%)
Barefoot Inc. (a) 115,000 1,595,625
-----------
Miscellaneous Transportation--(2.5%)
Ek Chor China Motorcycle Co. Ltd. 105,000 1,693,125
Featherlite Manufacturing, Inc. (a) 202,000 1,515,000
-----------
3,208,125
-----------
Oil/Gas--(4.6%)
Alexander Energy Corp. (a) 355,000 1,486,563
Basin Exploration, Inc. (a) 206,000 1,223,125
St. Mary Land & Exploration Co. 144,000 1,800,000
Vintage Petroleum, Inc. 80,000 1,500,000
-----------
6,009,688
-----------
Pulp & Paper Products--(1.1%)
Asia Pulp & Paper Company
Ltd. ADSs (a) 110,000 1,388,750
-----------
See Notes to Financial Statements.
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS (Continued)
SteinRoe Variable Investment Trust Capital Appreciation Fund /
June 30, 1995 (Unaudited)
Market
Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCKS (Continued)
Real Estate--(0.6%)
Walker Corporation (a) 2,550,000 $ 796,931
------------
Retail Trade--(3.1%)
Proffitts, Inc. (a) 49,000 1,457,750
Quality Food Centers, Inc. 130,000 2,600,000
------------
4,057,750
------------
Specialty Chemicals--(7.7%)
Minerals Technologies, Inc., Class A 54,000 1,944,000
OM Group, Inc. 103,500 2,949,750
PENWEST Ltd. 73,700 1,713,525
Rexene Corporation (a) 280,000 3,465,000
------------
10,072,275
------------
Telecommunications--(4.5%)
ABC Communications 3,399,000 944,801
Plantronics, Inc. (a) 80,000 2,140,000
PriCellular (a) 31,000 286,750
Shanghai Post &
Telecommunications (a) 1,800,000 1,080,000
Videotron Holdings ADRs (a) 110,000 1,540,000
------------
5,991,551
------------
Total Common Stocks (Cost $116,587,183) 116,914,039
------------
WARRANTS--(0.7%)
Business Services--(0.7%)
Olsten Corporation (a) 315,000 866,250
------------
(Cost $839,912)
<PAGE>
<CAPTION>
Par Market
Value Value
--------- -----------
<S> <C> <C>
SHORT-TERM INVESTMENTS--(6.9%)
Lehman Brothers Holdings, 6.350%,
due 07/03/95 $4,000,000 $ 3,998,589
Salomon Brothers, Inc., 6.100%,
due 07/05/95 5,000,000 4,996,611
------------
Total Short-Term Investments
(Cost $8,995,200) 8,995,200
------------
Total Investments--(96.9%)
(Cost $126,422,295)(b) 126,775,489
Other Assets and Liabilities--Net--(3.1%) 4,070,361
------------
Net Assets (100%) $130,845,850
============
<FN>
(a) Non-income producing security.
(b) The cost of investments for federal income tax purposes is identical.
Gross unrealized appreciation and depreciation at June 30, 1995 is as
follows:
Gross unrealized appreciation: $ 12,035,437
Gross unrealized depreciation: (11,682,243)
------------
Net unrealized appreciation: $ 353,194
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Capital Appreciation Fund / June 30, 1995
(Unaudited)
<S> <C>
Assets:
Investments, at market value (identified cost $126,422,295) $126,775,489
Cash (including foreign currencies) 50,722
Receivable for sale of investments 5,395,806
Receivable for fund shares sold 15,175
Dividends and interest receivable 47,557
Other assets 102,887
------------
Total assets 132,387,636
------------
Liabilities:
Payable for investments purchased 1,152,450
Payable for fund shares repurchased 269,815
Management fee payable 53,737
Administrative fee payable 16,127
Accrued expenses payable 47,681
Other liabilities 1,976
------------
Total liabilities 1,541,786
------------
Net assets $130,845,850
============
Net assets represented by:
Paid-in capital $133,582,827
Accumulated undistributed net investment income 146,461
Accumulated net realized losses on investments (3,236,632)
Net unrealized appreciation on investments 353,194
------------
Total net assets applicable to outstanding shares of
beneficial interest $130,845,850
============
Shares of beneficial interest outstanding 9,052,790
============
Net asset value per share $14.45
=======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year Ended June 30, 1995 (Unaudited)
<S> <C>
Investment income:
Interest income $ 352,920
Dividends (net of foreign taxes withheld of $20,670) 362,974
-------------
Total investment income 715,894
-------------
Expenses:
Management fee 338,983
Administrative fee 101,686
Custodian fee 38,011
Accounting fee 13,574
Transfer agent fee 3,720
Audit fees 9,211
Printing expense 6,516
Trustees' expense 5,430
Miscellaneous expense 5,124
-------------
Total expenses 522,255
-------------
Net investment income 193,639
Realized and unrealized losses on investments:
Net realized losses on investments (2,822,747)
Change in unrealized appreciation or depreciation
on investments (51,676)
-------------
Net decrease in net assets resulting from operations $ (2,680,784)
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Capital Appreciation Fund
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ - ------------
<S> <C> <C>
Operations:
Net investment income $ 193,639 $ 517,097
Net realized gains (losses) on investments (2,822,747) 13,548,855
Net realized losses on foreign currency transactions -- (231)
Change in unrealized appreciation or depreciation on investments (51,676) (12,211,045)
------------ ------------
Net increase (decrease) in net assets resulting from operations (2,680,784) 1,854,676
------------ ------------
Distributions declared from:
Net investment income -- (516,866)
Distributions in excess of net investment income -- (47,983)
Net realized gains on investments -- (14,465,741)
Distributions in excess of net realized gains on investments -- (411,514)
------------ ------------
Total distributions -- (15,442,104)
------------ ------------
Fund share transactions:
Proceeds from fund shares sold 26,151,295 68,416,999
Cost of fund shares repurchased (26,703,006) (32,737,534)
Distributions reinvested -- 15,442,104
------------ ------------
Net increase (decrease) in net assets resulting from fund
share transactions (551,711) 51,121,569
------------ ------------
Total increase (decrease) in net assets (3,232,495) 37,534,141
Net assets:
Beginning of period 134,078,345 96,544,204
------------ ------------
End of period $130,845,850 $134,078,345
============ ============
Accumulated undistributed (overdistributed) net investment income
included in ending net assets $ 146,461 $ (49,516)
============ ============
Analysis of changes in shares of beneficial interest:
Shares sold 1,791,677 4,230,792
Shares redeemed (1,837,099) (2,037,606)
Distributions reinvested -- 1,065,237
------------ ------------
Net increase (decrease) (45,422) 3,258,423
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Capital Appreciation Fund
Six Months Ended
June 30, 1995 Year Ended December 31,
------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 14.74 $ 16.53 $ 15.34 $ 15.32 $ 12.07 $ 14.79
-------- -------- ------- ------- ------- -------
Net investment income 0.02 0.06 0.03 -- 0.21 0.19
Net realized and unrealized gains (losses)
on investments (0.31) 0.09 5.22 2.17 4.19 (1.53)
-------- -------- ------- ------- ------- -------
Total from investment operations (0.29) 0.15 5.25 2.17 4.40 (1.34)
-------- -------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income -- (0.07) (0.02) -- (0.15) (0.28)
Distributions from net realized gains
on investments -- (1.87) (4.04) (2.15) (1.00) (1.10)
-------- -------- ------- ------- ------- -------
Total distributions -- (1.94) (4.06) (2.15) (1.15) (1.38)
-------- -------- ------- ------- ------- -------
Net asset value, end of period $ 14.45 $ 14.74 $ 16.53 $ 15.34 $ 15.32 $ 12.07
======== ======== ======= ======= ======= =======
Total return:
Total investment return (1.97)%(d) 1.19%(b) 35.68%(b) 14.48% 37.25% (8.91)%
Ratios/supplemental data:
Net assets, end of period (000) $130,846 $134,078 $96,544 $52,135 $41,179 $33,238
Ratio of expenses to average net assets 0.77%(c) 0.80% 0.84%(a) 1.01% 1.03% 1.14%
Ratio of net income to average
net assets 0.29%(c) 0.44%(b) 0.13%(b) (0.01)% 1.35% 1.43%
Portfolio turnover ratio 62%(d) 144% 112% 85% 36% 121%
<FN>
(a) If the Fund had paid all of the expenses and there had been no
reimbursement from the Investment Adviser and the Administrator, as described
in Note 5, this ratio would have been 0.86% for the year ended December 31,
1993.
(b) Computed giving effect to the Investment Adviser's and the Administrator's
expense limitation undertaking.
(c) Annualized.
(d) Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Managed Growth Stock Fund / June 30, 1995 (Unaudited)
<CAPTION>
Market
Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCKS--(88.8%)
Bank Holding Company--(1.4%)
MBNA Corp. 50,000 $ 1,687,500
-----------
Business Services--(2.4%)
First Data Corporation 50,000 2,843,750
-----------
Computer Software--(5.5%)
Microsoft Corp. (a) 50,000 4,518,750
Oracle Systems Corp. (a) 50,000 1,931,250
-----------
6,450,000
-----------
Construction--(1.3%)
Fluor Inc. 30,000 1,560,000
-----------
Consumer Products--(10.4%)
Autozone, Inc. 85,000 2,135,625
CUC International, Inc. (a) 50,000 2,100,000
The Gillette Company 100,000 4,462,500
The Proctor & Gamble Co. 50,000 3,593,750
-----------
12,291,875
-----------
Distribution--Wholesale--(1.9%)
Sysco Corporation 75,000 2,212,500
-----------
Electrical Equipment--(4.5%)
General Electric Company 60,000 3,382,500
Whirlpool Corporation 35,000 1,925,000
-----------
5,307,500
-----------
<PAGE>
Energy--(2.1%)
Renaissance Energy Ltd. (a) 60,000 1,239,263
Schlumberger Ltd. (a) 20,000 1,242,500
-----------
2,481,763
-----------
Financial Services--(4.3%)
Federal National Mortgage Association 35,000 3,303,125
First Financial Management Corporation 20,000 1,710,000
-----------
5,013,125
-----------
Food/Beverage/Tobacco--(4.7%)
The Coca Cola Company 55,000 3,506,250
Nabisco Holdings Corp. (a) 75,000 2,025,000
-----------
5,531,250
-----------
Health Care--(9.2%)
Abbott Laboratories 65,000 2,632,500
Johnson & Johnson 40,000 2,705,000
Roche Holdings ADRs (c) 40,000 2,576,132
United Healthcare Corp. 70,000 2,896,250
-----------
10,809,882
-----------
<PAGE>
<CAPTION>
Market
Shares Value
--------- -----------
<S> <C> <C>
Insurance--(4.9%)
American International Group, Inc. 25,000 $ 2,850,000
Travelers, Inc. 65,000 2,843,750
------------
5,693,750
------------
Leisure & Entertainment--(5.0%)
Carnival Cruise Lines Inc. 110,000 2,571,250
Disney (Walt), Co. 60,000 3,337,500
------------
5,908,750
------------
Mining--(2.1%)
Barrick Gold Corp. 100,000 2,525,000
------------
Media--(2.0%)
Viacom International Incorporated,
Cl. B (a) 50,000 2,318,750
------------
Medical Supplies--(3.3%)
Medtronic, Inc. 50,000 3,856,250
------------
Retail Trade--(4.5%)
The Home Depot, Inc. 75,000 3,046,875
Kohl's Corp. (a) 50,000 2,281,250
------------
5,328,125
------------
<PAGE>
Restaurants--(2.7%)
McDonald's Corporation 80,000 3,130,000
------------
Rubber, Plastic & Related--(2.8%)
Illinois Tool Works Inc. 60,000 3,300,000
------------
Technology Services--(4.4%)
Cisco Systems, Inc. (a) 50,000 2,528,125
General Motors Corp. Series E-1 60,000 2,610,000
------------
5,138,125
------------
Telecommunications--(9.4%)
Airtouch Communications (a) 75,000 2,137,500
AT & T Corporation 45,000 2,390,625
LM Ericsson Telecommunications
ADRs Cl. B 160,000 3,200,000
Motorola, Inc. 50,000 3,356,250
------------
11,084,375
------------
Total Common Stocks (Cost $80,793,113) 104,472,270
------------
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS Market
(Continued) Shares Value
---------- -----------
<S> <C> <C>
PREFERRED STOCK--(3.0%)
Electronics
Nokia Corp. ADSs (Cost $2,214,593) 60,000 $ 3,577,500
------------
<CAPTION>
Par
Value
----------
<S> <C> <C>
SHORT-TERM INVESTMENTS--(8.2%)
Associate Corporation of North America,
6.200%, due 07/03/95 $4,291,000 4,289,522
Countrywide Funding Corp., 6.020%,
due 07/05/95 3,360,000 3,357,753
Lehman Brothers Holdings, Inc.,
6.200%, due 07/03/95 2,000,000 1,998,622
------------
Total Short-Term Investments
(Cost $9,645,897) 9,645,897
------------
Total Investments--(100.0%)
(Cost $92,653,603) 117,695,667
Other Assets and Liabilities --Net--(0.0%) (42,493)
------------
Net Assets (100%) $117,653,174
============
<FN>
(a) Non-income producing security.
(b) The cost of investments for federal income tax purposes is $92,654,843.
Gross unrealized appreciation and depreciation on a tax basis at June 30, 1995
is as follows:
Gross unrealized appreciation: $26,161,638
Gross unrealized depreciation: (1,120,814)
-----------
Net unrealized appreciation: $25,040,824
===========
(c) Private placement security. These securities generally are issued to
institutional investors, such as the Fund who agree that they are purchasing
the securities for investment and not with a view to public distribution. Any
resale by the Fund must be in an exempt transaction, normally to other
institutional investors.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Managed Growth Stock Fund /
June 30, 1995 (Unaudited)
<S> <C>
Assets:
Investments at market value (identified cost $92,653,603) $117,695,667
Cash 52,263
Receivable for fund shares sold 19,823
Dividends and interest receivable 124,413
Other assets 20,228
-------------
Total assets 117,912,394
-------------
Liabilities:
Payable for fund shares repurchased 158,957
Management fee payable 47,352
Administrative fee payable 14,212
Accrued expenses payable 34,259
Other liabilities 4,440
-------------
Total liabilities 259,220
-------------
Net assets $117,653,174
============
Net assets represented by:
Paid-in capital $ 90,895,165
Accumulated undistributed net investment income 349,519
Accumulated net realized gains on investments 1,366,426
Net unrealized appreciation on investments 25,042,064
-------------
Total net assets applicable to outstanding shares of
beneficial interest $117,653,174
============
Shares of beneficial interest outstanding 5,504,417
============
Net asset value per share $21.37
======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year Ended June 30, 1995 (Unaudited)
<S> <C>
Investment income:
Dividends (net of foreign taxes withheld of $20,263) $ 607,995
Interest income 232,432
-------------
Total investment income 840,427
-------------
Expenses:
Management fee 264,680
Administrative fee 79,404
Custodian fee 18,470
Accounting fee 13,205
Transfer agent fee 3,719
Audit expense 9,211
Printing expense 4,525
Trustees' expense 4,887
Miscellaneous expense 4,110
-------------
Total expenses 402,211
-------------
Net investment income 438,216
Realized and unrealized gains on investments:
Net realized gains on investments 1,636,246
Change in unrealized appreciation or depreciation
on investments 15,799,939
-------------
Net increase in net assets resulting from operations $ 17,874,401
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Managed Growth Stock Fund
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ -------------
<S> <C> <C>
Operations:
Net investment income $ 438,216 $ 784,118
Net realized gains on investments 1,636,246 5,159,272
Change in unrealized appreciation or depreciation
on investments 15,799,939 (13,153,444)
------------ ------------
Net increase (decrease) in net assets resulting
from operations 17,874,401 (7,210,054)
------------ ------------
Distributions declared from:
Net investment income -- (784,118)
In excess of net investment income -- (84,035)
Net realized gains on investments -- (5,159,272)
In excess of net realized gains on investments -- (253,915)
------------ ------------
Total distributions -- (6,281,340)
------------ ------------
Fund share transactions:
Proceeds from fund shares sold 11,413,017 18,043,118
Cost of fund shares repurchased (10,367,383) (23,661,234)
Distributions reinvested -- 6,281,340
------------ ------------
Net increase in net assets resulting from fund
share transaction 1,045,634 663,224
------------ ------------
Total increase (decrease) in net assets 18,920,035 (12,828,170)
Net assets:
Beginning of period 98,733,139 111,561,309
------------ ------------
End of period $117,653,174 $ 98,733,139
============ ============
Accumulated undistributed (overdistributed) net
investment income included in ending net assets $ 349,519 $ (88,697)
============ ============
Analysis of changes in shares of beneficial interest:
Shares sold 586,348 913,688
Shares redeemed (534,048) (1,211,396)
Distributions reinvested -- 346,270
------------ ------------
Net increase 52,300 48,562
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Managed Growth Stock Fund
Six Months Ended
June 30, 1995 Year Ended December 31,
-----------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ ------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 18.11 $ 20.65 $ 20.10 $ 19.47 $ 13.44 $ 13.88
-------- ------- -------- ------- ------- -------
Net investment income 0.08 0.15 0.13 0.11 0.17 0.19
Net realized and unrealized gains (losses)
on investments 3.18 (1.46) 0.86 1.18 6.25 (0.42)
-------- ------- -------- ------- ------- -------
Total from investment operations 3.26 (1.31) 0.99 1.29 6.42 (0.23)
-------- ------- -------- ------- ------- -------
Less distributions:
Dividends from net investment income -- (0.17) (0.12) (0.10) (0.18) (0.21)
Distributions from net realized gains
on investments -- (1.06) (0.32) (0.56) (0.21) --
-------- ------- -------- ------- ------- -------
Total distributions --(1.23) (0.44) (0.66) (0.39) (0.21)
-------- ------- -------- ------- ------- -------
Net asset value, end of period $ 21.37 $ 18.11 $ 20.65 $ 20.10 $19.47 $13.44
======== ======= ======== ======= ======= =======
Total return:
Total investment return 18.00%(d) (6.35)% 4.97% 6.63% 48.03%(1.65)%(b)
Ratios/supplemental data:
Net assets, end of period (000) $117,653 $98,733 $111,561 $64,402 $38,481 $17,383
Ratio of expenses to average net assets 0.77%(c) 0.77% 0.83% 0.97% 1.15% 1.50%(a)
Ratio of net income to average net assets 0.84%(c) 0.75% 0.77% 0.63% 1.15% 1.51%(b)
Portfolio turnover ratio 20%(d) 72% 77% 20% 40% 39%
<FN>
(a) If the Fund had paid all of its expenses and there had been no
reimbursement from the Investment Adviser and the Administrator, as described
in Note 5, this ratio would have been 1.54% for the year ended December 31,
1990.
(b) Computed giving effect to the Investment Adviser's and the
Administrator's expense limitation undertaking.
(c) Annualized.
(d) Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Strategic Managed Assets Fund /
June 30, 1995 (Unaudited)
<CAPTION>
Par Market
Value Value
----------- -----------
<S> <C> <C>
FEDERAL HOME LOAN BANK BOND--(15.7%)
7.360% due 07/01/04
(Cost $7,832,475) $ 7,500,000 $ 7,935,976
-----------
FEDERAL HOME LOAN MORTGAGE
CORPORATION CERTIFICATE--(8.8%)
8.065% due 01/27/05
(Cost $4,520,000) 4,000,000 4,457,360
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION CERTIFICATE--(12.3%)
6.140% due 01/21/04
(Cost $6,031,796) 6,500,000 6,232,980
-----------
U.S. TREASURY NOTE--(50.5%)
6.250% due 02/15/03
(Cost $24,707,109) 25,550,000 25,582,875
-----------
Total U.S. Government Securities and
Agency Obligations
(Cost $43,091,380) 44,209,191
-----------
<PAGE>
<CAPTION>
Par Market
Value Value
---------- -----------
<S> <C> <C>
SHORT-TERM INVESTMENTS--(10.5%)
Associate Corporation of North
America, 6.200%, due 07/03/95 $ 1,950,000 $ 1,948,334
Lehman Brothers Holding, Inc.,
6.150%, due 07/05/95 1,800,000 1,798,770
Salomon Inc., 6.250%, due 07/06/95 1,581,000 1,580,455
-----------
Total Short-Term Investments
(Cost $5,327,559) 5,327,559
-----------
Total Investments--(97.8%
(Cost $48,418,941) 49,536,750
Other Assets and Liabilities--Net--(2.2%) 1,133,071
-----------
Net Assets (100.0%) $50,669,821
===========
<FN>
(a) The cost of investments for federal income tax purposes is identical.
Gross unrealized appreciation and depreciation ad June 30, 1995 is as follows:
Gross unrealized appreciation: $1,180,449
Gross unrealized depreciation: (62,640)
-----------
$1,117,809
===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Strategic Managed Assets Fund /
June 30, 1995 (Unaudited)
<S> <C>
Assets:
Investments, at market value (identified cost $48,418,941) $49,536,750
Cash 51,461
Receivable for fund shares sold --
Interest receivable 1,190,135
Receivable from Investment Adviser/Administrator (2,194)
Other assets 12,390
-----------
Total assets 50,788,542
-----------
Liabilities:
Payable for fund shares repurchased 71,960
Management fee payable 21,063
Administrative fee payable 6,364
Accrued expenses payable 19,334
-----------
Total liabilities 118,721
-----------
Net assets $50,669,821
===========
Net assets represented by:
Paid-in capital $44,827,390
Accumulated undistributed net investment income 1,677,841
Accumulated net realized gains on investments 3,046,781
Net unrealized appreciation on investments 1,117,809
-----------
Total net assets applicable to outstanding shares of
beneficial interest $50,669,821
===========
Shares of beneficial interest outstanding 7,511,640
===========
Net asset value per share $6.75
=====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
<S> <C>
Investment income:
Interest income $ 1,975,139
-----------
Expenses:
Management fee 148,034
Administrative fee 40,370
Custodian fee 11,881
Accounting fee 12,554
Transfer agent fee 3,720
Audit fees 8,963
Printing expense 3,620
Trustees' expense 3,439
Miscellaneous expense 2,389
-----------
Total expenses 234,970
Less:
Expenses reimbursable by Investment Adviser (6,217)
-----------
Net expenses 228,753
-----------
Net investment income 1,746,386
Realized and unrealized gains on investments:
Net realized gains on investments 3,152,842
Change in unrealized appreciation or depreciation
on investments 2,935,633
-----------
Net increase in net assets resulting from operations $ 7,834,861
===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Strategic Managed Assets Fund
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ -------------
<S> <C> <C>
Operations:
Net investment income $ 1,746,386 $ 2,270,339
Net realized gains on investments 3,152,842 1,015,209
Change in unrealized appreciation or depreciation
on investments 2,935,633 (3,327,471)
------------ -----------
Net increase (decrease) in net assets resulting
from operations 7,834,861 (41,923)
------------ -----------
Distributions declared from:
Net investment income -- (2,270,339)
In excess of net investment income -- (40,602)
Net realized gains on investments -- (866,603)
------------ -----------
Total distributions -- (3,177,544)
------------ -----------
Fund share transactions:
Proceeds from fund shares sold 1,196,616 14,454,347
Cost of fund shares repurchased (17,508,655) (12,355,073)
Distributions reinvested -- 3,177,544
----------- -----------
Net increase (decrease) in net assets resulting from
fund share transactions (16,312,039) 5,276,818
------------ -----------
Total increase (decrease) in net assets (8,477,178) 2,057,351
Net assets:
Beginning of period 59,146,999 57,089,648
------------ -----------
End of period $ 50,669,821 $59,146,999
============ ===========
Accumulated undistributed (overdistributed) net
investment income included in
ending net assets $ 1,677,841 $ (68,546)
============ ===========
Analysis of changes in shares of beneficial interest:
Shares sold 197,648 2,359,128
Shares redeemed (2,831,395) (2,028,305)
Distributions reinvested -- 542,243
------------ -----------
Net increase 2,633,747 873,066
============ ===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Strategic Managed Assets Fund
<CAPTION>
Six Months Ended
June 30, 1995 Year Ended December 31,
------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 5.83 $ 6.16 $ 6.29 $ 6.45 $ 5.40 $ 5.98
------- ------- ------- ------- ------- -------
Net investment income 0.23 0.24 0.12 0.05 0.05 0.06
Net realized and unrealized gains (losses)
on investments 0.69 (0.24) -- 0.72 1.96 (0.57)
------- ------- ------- ------- ------- -------
Total from investment operations 0.92 0.00 0.12 0.77 2.01 (0.51)
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income -- (0.24) (0.12) (0.05) (0.05) (0.07)
Distributions from net realized gains
on investments -- (0.09) (0.13) (0.88) (0.91) --
------- ------- ------- ------- ------- -------
Total distributions -- (0.33) (0.25) (0.93) (0.96) (0.07)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 6.75 $ 5.83 $ 6.16 $ 6.29 $ 6.45 $ 5.40
======= ======= ======= ======= ======= =======
Total return:
Total investment return 15.78%(b),(d)(0.03)%(b) 1.93%(b) 13.03% 38.50%(b) (8.52)%(b)
Ratios/supplemental data:
Net assets, end of period (000) 50,670 $59,147 $57,090 $38,131 $17,912 $10,498
Ratio of expenses to average net
assets 0.84%(a),(c) 0.85%(a) 0.92%(a) 1.24% 1.50%(a) 1.50%(a)
Ratio of net income to average net
assets 6.42%(b),(c) 3.77%(b) 1.80%(b) 1.15% 0.87%(b) 1.05%(b)
Portfolio turnover ratio 84%(d) 204% 273% 297% 233% 61%
<FN>
(a) If the Fund had paid all of its expenses and there had been no
reimbursement from the Investment Adviser and the Administrator, as described
in Note 5, these ratios would have been 0.86% for the six months ended June
30, 1995, and 0.88%, 0.93%, 1.60%, and 2.12%, for the years ended December 31,
1994, 1993, 1991, and 1990, respectively.
(b) Computed giving effect to the Investment Adviser's and the Administrator's
expense limitation undertaking.
(c) Annualized.
(d)Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Managed Assets Fund/ June 30, 1995
(Unaudited)
<CAPTION>
Market
Shares Value
--------- -----------
<S> <C> <C>
COMMON STOCKS--(60.2%)
Banks--(5.7%)
Bank of Boston Corp. 40,000 $ 1,500,000
BankAmerica Corporation 56,000 2,947,000
Citicorp 62,000 3,588,250
Mercantile Bancorp Inc. (a) 36,000 1,615,500
NationsBank Corp. 50,000 2,681,250
-----------
12,332,000
-----------
Building & Construction--(2.2%)
Fleetwood Enterprises, Inc. 120,000 2,370,000
Masco Corporation 90,000 2,430,000
-----------
4,800,000
-----------
Business Machinery--(0.9%)
Xerox 17,000 1,993,250
-----------
Chemicals--(2.9%)
Praxair, Inc. 140,000 3,500,000
Rexene Corporation (a) 220,000 2,722,500
-----------
6,222,500
-----------
Consumer Products--(1.5%)
First Brands Corp. 73,000 3,129,875
-----------
Drugs/Health Care--(5.1%)
American Home Products Corp. 38,000 2,940,250
Bristol-Meyers Squibb Company 45,000 3,065,625
Elan Corp. Plc ADRs (a) 65,000 2,648,750
Glaxo Holdings Corp. PLC ADRs 101,000 2,461,875
-----------
11,116,500
-----------
Electrical Equipment--(3.0%)
Emerson Electric Co. 44,000 3,146,000
General Electric Co. 61,200 3,450,150
-----------
6,596,150
-----------
<PAGE>
Electronics--(1.8%)
Intel Corporation 62,000 3,925,375
-----------
Environmental Services--(1.3%)
WMX Technologies 90,000 2,553,750
-----------
Fabricated Metal Products--(1.0%)
Material Science (a) 110,000 2,241,250
-----------
Financial Services--(4.4%)
BHA Financial Services 167,400 2,741,175
Federal National Mortgage Association 35,000 3,303,125
Green Tree Financial Corp. 80,000 3,550,000
-----------
9,594,300
-----------
<PAGE>
<CAPTION>
Market
Shares Value
--------- -----------
<S> <C> <C>
Food/Beverage/Tobacco--(2.5%)
PepsiCo, Inc. 43,000 $ 1,961,875
Sara Lee Corporation 120,000 3,420,000
-----------
5,381,875
-----------
Housewares--(1.0%)
Newell 90,000 2,205,000
-----------
Oil/Gas--(6.6%)
Amoco Corp. 46,000 3,064,750
CINergy Corporation 60,000 1,575,000
Coastal Corp. 97,000 2,946,375
Enron Corp. 100,600 3,533,575
Enron Global Power & Pipe 130,000 3,087,500
-----------
14,207,200
-----------
Paper & Forest Products--(3.7%)
Georgia Pacific Corp. 27,000 2,342,250
Kimberly Clark Corporation 50,000 2,993,750
Sonoco Products 110,000 2,722,500
-----------
8,058,500
-----------
Publishing & Broadcasting--(1.3%)
Hubbell Inc., Cl. B 51,000 2,881,500
-----------
<PAGE>
Real Estate--(3.3%)
Avalon Properties, Inc. 148,000 2,941,500
Newhall Land & Farming Co. 80,000 1,110,000
Southwestern Properties Trust 267,000 3,070,500
-----------
7,122,000
-----------
Retail Trade--(4.1%)
Penny (J.C.) Co., Inc. 63,000 3,024,000
Rite Aid Corporation 110,000 2,818,750
TOYS "R" US, Inc. (a) 100,000 2,925,000
-----------
8,767,750
-----------
Services--(1.5%)
Services Corp. International 105,000 3,320,625
-----------
Telecommunications--(2.5%)
Frontier Corp. 120,000 2,880,000
Telefonos De Mexico S.A. de C.V.
Cl. A ADR 83,000 2,458,875
-----------
5,338,875
-----------
Transportation--(1.5%)
CSX Corp. 44,000 3,305,500
-----------
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS (Continued)
SteinRoe Variable Investment Trust Managed Assets Fund/ June 30, 1995 (Unaudited)
Market
Shares Value
-------- ------------
<S> <C> <C>
COMMON STOCKS (Continued)
Utilities--(2.4%)
Empresa Nacional De Electricidad ADRs 54,000 $ 2,659,500
UGI Corporation 124,000 2,619,500
------------
5,279,000
------------
Total Common Stocks (Cost $108,642,336) 130,372,775
------------
PREFERRED STOCKS--(2.8%)
Gas Exploration--(1.6%)
Occidental Petroleum Corporation (c) 59,000 3,414,625
------------
Insurance--(1.2%)
SunAmerica, Inc. 55,000 2,530,000
------------
Total Preferred Stocks (Cost $5,212,900) 5,944,625
------------
<PAGE>
<CAPTION>
Par
Value
----------
<S> <C> <C>
ASSET-BACKED SECURITIES--(2.2%)
ALPS, Series 1994-1, Cl. C,
9.350%, due 09/15/04 $1,989,855 2,069,389
Greentree Home Improvement Loan
Trust Series 1994-A Class A 7.050%,
due 03/15/2014 1,536,275 1,532,326
Greentree Securitized Net Interest
Margin Series 1994-A, 6.900%,
due 02/15/04 1,034,503 1,027,375
------------
Total Asset-Backed Securities
(Cost $4,553,306) 4,629,090
------------
COLLATERALIZED MORTGAGE
OBLIGATIONS--(1.1%)
American Residential Mtg. Corp.
6.110%, due 02/03/99 2,000,000 1,977,520
MDC Mortgage Funding Corporation
Series Q5, 8.850%, due 03/20/18 343,344 356,604
------------
Total Collateralized Mortgage
Obligations (Cost $2,763,382) 2,334,124
------------
COMMERCIAL MORTGAGE-BACKED
CERTIFICATES--(2.3%)
Kearney Street Real Estate, CL. C,
7.700%, due 07/15/01 2,500,000 2,490,900
Lennar Cent. Partners, Series
1994-1 Cl. C, 8.120%, due 09/15/02 (c) 2,500,000 2,520,025
------------
Total Commercial Mortgage-
Backed Certificates (Cost $4,946,875) 5,010,925
------------
<PAGE>
<CAPTION>
Par Market
Value Value
-------- ------------
<S> <C> <C>
CONVENTIONAL PASS-THROUGH
MORTGAGE CERTIFICATE--(1.0%)
American Mortgage Trust Series
1993-3 Class 3B, 8.190%,
due 09/27/1922 $2,216,867 $2,138,634
General Motors Acceptance
Corporation Mortgage, 12.875%,
due 07/01/14 3,247 3,275
----------
Total Conventional Pass-Through
Mortgage Certificates (Cost $2,042,976) 2,141,909
----------
CORPORATE BONDS--(16.2%)
Air Transportation--(0.3%)
United Air Lines Series 1991-A-1,
9.200%, due 03/22/08 711,197 745,655
----------
Auto/Parts--(0.5%)
Ford Motor Company, 8.875%, due
01/15/1922 950,000 1,089,916
----------
Banks--(1.0%)
Den Danske AF 1871 Aktieselska,
6.550%, due 09/15/03 2,250,000 2,150,618
----------
Entertainment--(1.3%)
Carnival Cruise Lines, Inc. Conv. Deb.
4.500%, due 07/01/97 1,100,000 1,504,250
Corporacion Andina de Fomento,
6.625%, due 10/14/98 1,500,000 1,438,080
----------
2,942,330
----------
Financial Services--(1.6%)
Ford Motor Credit Company, 5.750%,
due 05/14/98 2,000,000 1,970,660
General Motors Acceptance
Corporation, 9.625%, due 12/15/01 1,300,000 1,486,927
----------
3,457,587
----------
Forest Products--(1.0%)
Boise Cascade Corporation,
10.125%, due 12/15/97 2,000,000 2,156,060
----------
Healthcare--(1.5%)
Nationwide Health Property Inc.
Conv. Deb. 6.250%, due 01/01/99 3,200,000 3,204,000
----------
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS Par Market
(Continued) Value Value
---------- -----------
<S> <C> <C>
CORPORATE BONDS (Continued)
Media--(1.5%)
TimeWarner, Inc., Conv. Deb.
8.750%, due 01/10/2015 $3,100,000 $ 3,208,500
-----------
Metals/Mining--(0.9%)
Freeport-McMoran Copper & Gold
Co., Inc. Conv. Deb., 6.550%,
due 01/15/01 2,100,000 1,915,492
-----------
Oil/Gas--(4.0%)
Atlantic Richfield, 9.125%,
due 03/01/11 2,250,000 2,645,730
Consolidated Natural Gas Co.,
Conv. Deb., 7.250%, due 12/15/15 3,000,000 3,101,250
SFP Pipeline Holdings, Inc.
Conv. Deb., 10.410%,
due 08/15/01 1,400,000 1,792,000
Texas Eastern Transmission
Corporation, 10.000%, due
08/15/01 1,000,000 1,157,340
-----------
8,696,320
-----------
Retail Trade--(0.4%)
Dayton-Hudson Corporation,
8.600%, due 01/15/12 750,000 826,763
-----------
Telecommunications--(1.0%)
GTE South, 9.375%, due 06/15/30 2,000,000 2,108,000
-----------
<PAGE>
Utilities--(1.2%)
Niagara Mohawk Power Corp.
8.000%, due 06/01/04 2,500,000 2,586,625
-----------
Total Corporate Bonds
(Cost $33,726,125) 35,087,866
-----------
CREDIT ACCOUNT PASS-THROUGH
CERTIFICATES--(2.0%)
Federal Express Corporation Series
A31, 7.530%, due 09/23/06 2,458,966 2,527,546
Prime Credit Card Master Trust
Series 92 Cl. B, 7.550%, due
02/15/01 1,750,000 1,819,020
-----------
Total Credit Account Pass-Through
Certificates (Cost $4,216,349) 4,346,566
-----------
FEDERAL HOME LOAN MORTGAGE
CERTIFICATES--(1.2%)
8.000%, due 12/01/01 106,410 108,671
12.000%, due 07/01/20 2,308,009 2,590,670
-----------
Total Federal Home Loan Mortgage
Certificates (Cost $2,627,302) 2,699,341
-----------
<PAGE>
<CAPTION>
Par Market
Value Value
---------- ----------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE
ASSOCIATION CERTIFICATE--(1.4%)
8.000%, due 04/13/05
(Cost $2,997,656) $3,000,000 $ 3,102,990
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION CERTIFICATES--(0.9%)
6.500% due 10/15/25 ARM (c) 1,500,000 1,516,875
8.500%, due 10/15/17 16,381 17,102
9.000%, due 08/15/16 5,682 6,014
9.000%, due 01/15/20 46,531 48,407
9.500%, due 05/15/20 96,548 102,583
9.500%, due 06/15/20 183,054 194,496
9.500%, due 08/15/22 152,163 161,675
------------
Total Government National
Mortgage Association Certificates
(Cost $2,021,675) 2,047,152
------------
REAL ESTATE MORTGAGE INVESTMENT
CONDUIT--(0.4%)
Federal Home Loan Mortgage
Corporation Series 197-H,
8.500%, due 05/15/01
(Cost $927,447) 877,537 884,549
------------
U.S. GOVERNMENT SECURITIES AND
AGENCY OBLIGATIONS--(1.6%)
Federal Home Loan Mortgage
Corp., 5.630%, due 01/05/99
(Cost $3,383,415) 3,500,000 3,422,020
------------
SHORT-TERM INVESTMENTS--(7.1%)
Countrywide Funding Corp., 6.020%,
due 07/05/95 7,960,000 7,954,676
Lehman Brothers Holdings, Inc.,
6.200%, due 07/03/95 7,465,000 7,462,366
------------
Total Short-Term Investments
(Cost $15,417,042) 15,417,042
------------
Total Investments--(100.4%)
(Cost $193,478,786) 217,440,974
Other Assets and Liabilities--(-.0.4%) (781,402)
------------
Net Assets (100%) $216,659,572
============
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS (Continued)
SteinRoe Variable Investment Trust Managed Assets Fund/ June 30, 1995 (Unaudited)
<FN>
(a) Non-income producing security.
(b) The cost of investments for federal income tax purposes is identical.
Gross unrealized appreciation and depreciation at June 30, 1995 is
as follows:
Gross unrealized appreciation: $25,981,314
Gross unrealized depreciation: (2,019,126)
------------
Net unrealized appreciation: $23,962,188
============
(c) Private placement security. These securities generally are issued to
institutional investors, such as the Fund who agree that they are purchasing
the securities for investment and not with a view to public distribution. Any
resale by the Fund must be in an exempt transaction, normally to other
institutional investors.
(d) Security purchased on a delay delivery basis; see notes to the financial
statements.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Managed Assets Fund /
June 30, 1995 (Unaudited)
<S> <C>
Assets:
Investments, at market value (identified cost $193,478,786) $217,440,974
Cash 73,185
Receivable from Investment Adviser 14,621
Receivable for fund shares sold 73,528
Dividends and interest receivable 1,265,959
Other assets 8,454
------------
Total assets 218,876,721
------------
Liabilities:
Payable for investments purchased 1,771,787
Payable for fund shares repurchased 288,261
Management fee payable 79,565
Administrative fee payable 26,541
Accrued expenses payable 51,069
------------
Total liabilities 2,217,223
------------
Net assets $216,659,572
============
Net assets represented by:
Paid-in capital $183,883,496
Accumulated undistributed net investment income 4,176,650
Accumulated net realized gains on investments 4,637,238
Net unrealized appreciation on investments 23,962,188
------------
Total net assets applicable to outstanding shares of
beneficial interest $216,659,572
============
Shares of beneficial interest outstanding 15,589,280
============
Net asset value per share $13.90
======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SteinRoe Variable Investment Trust Managed Assets Fund / Six Months
Ended June 30, 1995 (Unaudited)
<S> <C>
Investment income:
Interest income $ 3,056,964
Dividends (net of foreign taxes withheld of $5,954) 1,820,474
-----------
Total investment income 4,877,438
-----------
Expenses:
Management fee 458,612
Administrative fee 152,871
Custodian fee 28,107
Accounting fee 14,428
Transfer agent fee 3,720
Audit fees 11,937
Printing expense 6,335
Trustees' expense 7,964
Other expense 8,040
-----------
Total expenses 692,014
-----------
Net investment income 4,185,424
Realized and unrealized gains on investments:
Net realized gains on investments 4,652,434
Change in unrealized appreciation or depreciation
on investments 18,377,041
-----------
Net increase in net assets resulting from operations $27,214,899
===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Managed Assets Fund
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ -------------
<S> <C> <C>
Operations:
Net investment income $ 4,185,424 $ 8,128,114
Net realized gains on investments 4,652,434 48,913
Change in unrealized appreciation or depreciation
on investments 18,377,041 (14,923,481)
------------ ------------
Net increase (decrease) in net assets resulting
from operations 27,214,899 (6,746,454)
------------ ------------
Distributions declared from:
Net investment income (31,637) (7,905,230)
Net realized gains on investments (31,637) --
------------ ------------
Total distributions (63,274) (7,905,230)
------------ ------------
Fund share transactions:
Proceeds from fund shares sold 12,433,193 44,215,554
Cost of fund shares repurchased (19,203,327) (38,323,460)
Distributions reinvested -- 7,905,230
------------ ------------
Net increase (decrease) in net assets resulting from fund
share transactions (6,770,134) 13,797,324
------------ ------------
Total increase (decrease) in net assets 20,381,491 (854,360)
Net assets:
Beginning of period 196,278,081 197,132,441
------------ ------------
End of period $216,659,572 $196,278,081
============ ============
Accumulated undistributed net investment income included in
ending net assets $ 4,176,650 $ 22,863
============ ============
Analysis of changes in shares of beneficial interest:
Shares sold 960,375 3,411,405
Shares redeemed (1,484,529) (2,987,381)
Distributions reinvested -- 651,172
------------ ------------
Net increase (decrease) (524,154) 1,075,196
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Managed Assets Fund
<CAPTION>
Six Months Ended
June 30, 1995 Year Ended December 31,
-------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 12.18 $ 13.11 $ 12.54 $ 12.54 $ 10.26 $ 11.38
-------- -------- -------- -------- ------- -------
Net investment income 0.27 0.51 0.38 0.45 0.52 0.62
Net realized and unrealized gains (losses)
on investments 1.45 (0.93) 0.78 0.49 2.31 (0.70)
-------- -------- -------- -------- ------- -------
Total from investment operations 1.72 (0.42) 1.16 0.94 2.83 (0.08)
-------- -------- -------- -------- ------- -------
Less distributions:
Dividends from net investment income -- (0.51) (0.36) (0.46) (0.44) (0.74)
Distributions from net realized gains
on investments -- -- (0.23) (0.48) (0.11) (0.30)
-------- -------- -------- -------- ------- -------
Total distributions -- (0.51) (0.59) (0.94) (0.55) (1.04)
-------- -------- -------- -------- ------- -------
Net asset value, end of period $ 13.90 $ 12.18 $ 13.11 $ 12.54 $ 12.54 $ 10.26
======== ======== ======== ======== ======= =======
Total return:
Total investment return 14.16%(b) (3.19)% 9.29% 7.53% 27.93% (0.69)%
Ratios/supplemental data:
Net assets, end of period (000) $216,660 $196,278 $197,132 $113,572 $82,710 $58,368
Ratio of expenses to average net assets 0.68%(a) 0.68% 0.69% 0.66% 0.71% 0.75%
Ratio of net income to average net assets 4.15%(a) 4.01% 3.55% 3.98% 4.57% 5.30%
Portfolio turnover ratio 29%(b) 71% 47% 70% 82% 111%
<FN>
(a) Annualized.
(b) Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Managed Income Fund /
June 30, 1995 (Unaudited)
<CAPTION>
Par Market
Value Value
---------- ----------
<S> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS--(0.7%)
MDC Mortgage Funding
Corporation Series Q5, 8.850%,
due 03/20/18 (Cost $254,192) $ 240,341 $ 249,624
----------
CONVENTIONAL PASS-THROUGH
MORTGAGE CERTIFICATE--(2.7%)
ALPS, Series 1994-1, Cl. C 9.350%,
due 09/15/04 (Cost $993,373) 995,000 1,034,695
----------
CORPORATE BONDS--(82.7%)
Air Transportation--(0.8%)
United Airlines Series 1991-A1,
9.200%, due 03/22/08 284,479 298,262
----------
Auto/Parts--(0.9%)
Ford Motor Company, 8.875%,
due 01/15/22 300,000 344,184
----------
Banks--(5.6%)
Banesto Delaware Inc., 8.250%, due
07/28/02 500,000 526,885
Chemical Bank New York Trust Co.,
7.250%, due 09/15/02 400,000 408,536
Citicorp, 9.000%, due 04/15/99 1,100,000 1,191,410
----------
2,126,831
----------
Building Materials--(2.5%)
Masco Corporation, 7.125%,
due 08/15/13 1,000,000 951,860
----------
Cable Television--(2.1%)
TeleCommunications, Inc., 7.375%,
due 02/15/00 800,000 805,376
----------
Containers/Glass--(4.2%)
Owens-Illinois Inc., 10.500%,
due 06/15/02 1,000,000 1,040,000
U.S. Can Company Sr. Sub. Notes
13.500%, due 01/15/02 500,000 555,000
----------
1,595,000
----------
Electronics--(2.9%)
Philips Electronics NV, 8.375%,
due 09/15/06 1,000,000 1,108,270
----------
<PAGE>
<CAPTION>
Par Market
Value Value
---------- ----------
<S> <C> <C>
Financial Services--(9.6%)
Heller Financial, Inc.
6.500%, due 05/15/00 $1,000,000 $ 996,650
Merrill Lynch & Company, Inc.,
8.390%, due 08/01/01 1,000,000 1,039,960
Property Trust of America Sr. Nts.
6.875%, due 02/15/08 1,000,000 963,240
RBSG Capital Corp., Gtd. Nts.,
10.125%, due 03/01/04 500,000 601,145
----------
3,600,995
----------
Food/Beverage/Tobacco--(8.9%)
Nabisco, Inc., 6.850%, due 06/15/05 750,000 738,113
Philip Morris Companies, Inc.
7.125%, due 08/15/02 1,000,000 1,012,740
Ralcorp Holdings, Inc.,
8.750%, due 09/15/04 1,000,000 1,082,510
RJR Nabisco, Inc., 8.625%, due
12/01/02 500,000 511,435
----------
3,344,798
----------
Foreign Government--(2.9%)
Basque Region of Spain,
8.000%, due 09/21/04 1,000,000 1,076,030
----------
Health Services--(3.0%)
Columbia/HCA HealthCare Corp.
8.850%, due 01/01/07 1,000,000 1,130,410
----------
Machinery & Fabricated Metal
Products--(7.5%)
Black & Decker Inc.,
7.000%, due 02/1/06 1,000,000 971,750
Cincinnati Milacron, Inc.,
8.375%, due 03/15/04 1,000,000 1,015,420
Rexnord Corporation Sr. Nts.,
10.750%, 07/01/02 750,000 841,635
----------
2,828,805
----------
<PAGE>
Media--(7.6%)
News America Holdings, Inc.,
7.500%, due 03/1/00 800,000 820,312
8.625%, due 02/01/03 500,000 539,465
Time Warner, Entertainment Inc.
7.250%, due 09/1/08 1,000,000 954,010
Young Broadcasting, Inc., Sr.
Secured Gtd. Nts., 11.750%,
due 11/15/04 500,000 547,500
----------
2,861,287
----------
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS Par Market
(Continued) Value Value
---------- -----------
<S> <C> <C>
CORPORATE BONDS (Continued)
Oil/Gas--(10.9%)
Coastal Corporation,
9.750%, due 08/01/03 $1,000,000 $ 1,145,470
Mitchell Energy & Development
Corporation, 8.000%, due 07/15/99 300,000 310,956
North Atlantic Energy Corporation,
9.050%, due 06/01/02 755,000 774,653
Occidental Petroleum Corporation
11.750%, due 03/15/11 550,000 593,775
Texas Eastern Transmission Corporation
10.000%, due 08/15/01 250,000 289,335
Union Texas Petroleum Holdings, Inc.
8.250%, due 11/15/99 1,000,000 1,001,570
-----------
4,115,759
-----------
Paper--(2.9%)
Domtar, Inc. Sr. Notes,
11.750%, 03/15/99 1,000,000 1,095,000
-----------
Retail Trade--(6.5%)
Dayton-Hudson Corporation,
8.600%, due 01/15/01 250,000 275,588
Federated Department Stores,
10.000%, due 02/15/01 500,000 538,750
Hook Superx Inc. Sr. Nts.,
10.125%, due 06/01/02 1,500,000 1,620,000
-----------
2,434,338
-----------
Security Broker/Dealer--(2.6%)
Goldman Sachs Group, Inc.,
6.200%, due 02/15/01 (b) 1,000,000 971,200
-----------
Services--(1.3%)
Rykoff Sexton Inc.,
8.875%, due 11/01/03 500,000 495,000
-----------
Total Corporate Bonds (Cost $30,627,405) 31,183,405
-----------
<PAGE>
<CAPTION>
Par Market
Value Value
---------- -----------
<S> <C> <C>
CREDIT ACCOUNT PASS-THROUGH
CERTIFICATE--(0.7%)
Household Credit Card Trust Series
1991-2B, 6.700%, due 07/15/97
(Cost $247,109) $ 250,000 $ 250,175
-----------
REAL ESTATE MORTGAGE
INVESTMENT CONDUITS--(0.7%)
Federal Home Loan Mortgage
Corporation Series 197-H, 8.500%,
due 05/15/01 219,384 221,137
Federal Home Loan Mortgage
Corporation Series 11C, 9.500%,
due 04/15/19 37,369 38,989
-----------
Total Real Estate Mortgage
Investment Conduits
(Cost $271,563) 260,126
-----------
U.S. GOVERNMENT SECURITIES--(7.0%)
U.S.Treasury Notes
6.350%, due 1/15/99 1,000,000 1,013,100
U.S. Treasury Bonds
8.875%, due 8/15/17 1,300,000 1,620,177
-----------
Total U.S. Government Securities
(Cost $2,560,056) 2,633,277
-----------
<PAGE>
SHORT-TERM INVESTMENTS--(3.4%)
Lehman Brothers Holding Inc.,
6.350%, due 07/03/95
(Cost $1,285,547) 1,285,547
-----------
Total Investments--(97.9%)
(Cost $36,239,245) 36,896,845
Other Assets and Liabilities--Net--(2.1%) 807,292
-----------
Net Assets (100%) $37,704,137
===========
<FN>
(a) The cost of investments for federal income tax purposes is identical.
Gross unrealized appreciation and depreciation at June 30, 1995 is as follows:
Gross unrealized
appreciation: $1,087,666
Gross unrealized
depreciation: (430,066)
-----------
Net unrealized
appreciation: $ 657,600
===========
(b) Private placement security. These securities generally are issued into
institutional investors, such as the Fund, who agree that they are purchasing
the securities for investment and not with a view to public distribution. Any
resale by the Fund must be in an exempt transaction, normally to other
institutional investors.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Managed Income Fund /
June 30, 1995 (Unaudited)
<S> <C>
Assets:
Investments, at market value (identified cost $36,239,245) $36,896,845
Cash 50,728
Interest receivable 799,518
Other assets 28,897
-----------
Total assets 37,775,988
-----------
Liabilities:
Payable for fund shares repurchased 42,016
Management fee payable 12,552
Administrative fee payable 9,379
Accrued expenses payable 7,904
-----------
Total liabilities 71,851
-----------
Net assets $37,704,137
===========
Net assets represented by:
Paid-in capital $38,337,817
Accumulated undistributed net investment income 1,475,477
Accumulated net realized losses on investments (2,766,757)
Net unrealized appreciation on investments 657,600
-----------
Total net assets applicable to outstanding shares of
beneficial interest $37,704,137
===========
Shares of beneficial interest outstanding 3,710,917
===========
Net asset value per share $10.16
======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
<S> <C>
Interest income $1,661,131
----------
Expenses:
Management fee 78,892
Administrative fee 29,584
Custodian fee 16,462
Accounting fee 12,498
Transfer agent fee 3,719
Audit fees 11,693
Printing expense 2,715
Trustees' expense 3,077
Amortization of organization expense 2,373
Miscellaneous expense 1,845
------------
Total expenses 162,858
Less:
Expenses reimbursable by Investment Adviser (18,447)
------------
Net expenses 144,411
------------
Net investment income 1,516,720
Realized and unrealized gains (losses) on investments:
Net realized losses on investments (356,390)
Change in unrealized appreciation or depreciation
on investments 3,511,680
------------
Net increase in net assets resulting from operations $4,672,010
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Managed Income Fund
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ -------------
<S> <C> <C>
Operations:
Net investment income $ 1,516,720 $ 3,428,583
Net realized losses on investments (356,390) (2,332,369)
Change in unrealized appreciation or depreciation
on investments 3,511,680 (3,299,403)
------------ ------------
Net increase (decrease) in net assets resulting
from operations . 4,672,010 (2,203,189)
------------ ------------
Distributions declared from:
Net investment income -- (3,350,570)
------------ ------------
Fund share transactions:
Proceeds from fund shares sold 1,012,071 7,954,828
Cost of fund shares repurchased (10,427,842) (16,442,413)
Distributions reinvested -- 3,350,570
------------ ------------
Net decrease in net assets resulting from fund share
transactions (9,415,771) (5,137,015)
------------ ------------
Total decrease in net assets (4,743,761) (10,690,774)
Net assets:
Beginning of period 42,447,898 53,138,672
------------ ------------
End of period $ 37,704,137 $ 42,447,898
============ ============
Accumulated undistributed (overdistributed) net investment
income included
in ending net assets $ 1,475,477 $ (41,243)
============ ============
Analysis of changes in shares of beneficial interest:
Shares sold 108,437 795,415
Shares redeemed (1,096,278) (1,654,237)
Distributions reinvested -- 370,638
Substitution -- --
------------ ------------
Net decrease (987,841) (488,184)
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Managed Income Fund
<CAPTION>
Six Months Ended Year Ended Period Ended
June 30, 1995 December 31, December 31,
(Unaudited) 1994 1993*
------------- ------------- -------------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 9.03 $ 10.24 $ 10.00
------- ------- -------
Net investment income 0.41 0.78 0.52
Net realized and unrealized gains (losses) on investments . 0.72 (1.22) 0.30
------- ------- -------
Total from investment operations 1.13 (0.44) 0.82
------- ------- -------
Less distributions:
Dividends from net investment income -- (0.77) (0.54)
Distributions from net realized gains
on investments -- -- (0.04)
------- ------- -------
Total distributions -- (0.77) (0.58)
------- ------- -------
Net asset value, end of period $ 10.16 $ 9.03 $ 10.24
======= ======= =======
Total return:
Total investment return (b) 12.51%(d) (4.40)% 8.31%(d)
Ratios/supplemental data:
Net assets, end of period (000) $37,704 $42,448 $53,139
Ratio of net expenses to average net assets (a) 0.73%(c) 0.70% 0.71%(c)
Ratio of net investment income to average net assets (b) 7.63%(c) 7.16% 6.32%(c)
Portfolio turnover ratio 18%(d) 80% 115%(d)
<FN>
* For the period from the start of business, February 1, 1993 to December 31,
1993.
(a) If the Fund had paid all of the expenses and there had been no
reimbursement from the Investment Adviser and the Administrator, as described
in Note 5, this ratio would have been 0.82% , and 0.85% for the periods ended
June 30, 1995 and December 31, 1993, respectively, and 0.78% for the year
ended December 31, 1994.
(b) Computed giving effect to the Investment Adviser's and the Administrator's
expense limitation undertaking.
(c) Annualized.
(d) Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Mortgage Securities Income Fund / June 30,
1995 (Unaudited)
<CAPTION>
Par Market
Value Value
----------- ----------
<S> <C> <C>
ASSET-BACKED SECURITIES--(4.5%)
ALPS, Series 1994-1, Cl. C,
9.350%, due 09/15/04 $ 994,927 $1,034,695
First Boston Home Equity Loan Pass-
Through Certificates Series 1993-H1,
Class A-IO (effective yield 12.820%),
due 09/28/13 10,873,322 362,734
Greentree Home Improvement Loan
Trust Series 1994-A Class A 7.050%,
due 03/15/2014 1,152,206 1,149,245
Greentree Securitized Net Interest
Margin Series 1994-A, 6.900%,
due 02/15/04 775,877 770,531
----------
Total Asset-Backed Securities
(Cost $3,309,145) 3,317,205
----------
COLLATERALIZED MORTGAGE
OBLIGATION--(0.7%)
MDC Mortgage Funding Corporation
Series Q, Class 5, 8.850%,
due 03/20/18 (Cost $512,200) 515,017 534,907
----------
<PAGE>
COMMERCIAL MORTGAGE-BACKED
CERTIFICATES--(7.5%)
Countrywide Mortgage Backed
Securities Inc. Series 1994-F
Cl. A4, 6.000%, due 04/25/09 2,000,000 1,892,020
Excel Credit Corporation Commercial
Mortgage Pass-Through Certificate
Series 1994-1Cl. A, 4.975%,
due 03/01/04 (Floating Rate) 899,841 907,661
Kearney Street Real Estate, CL. C,
7.700%, due 07/15/01 500,000 506,340
Merrill Lynch Mortgage Investors,
Inc. Series-M1, Cl. C, 8.227%,
due 04/15/23 421,000 433,382
PS Trust Series 1994-1, Cl. A(0),
7.920%, due 08/15/02 750,000 774,173
SKW Real Estate Secured Note,
Cl. C, 7.050%, due 04/15/02 (b) 1,000,000 1,005,320
----------
Total Commercial Mortgage-
Backed Certificates
(Cost $5,428,299) 5,518,896
----------
CONVENTIONAL PASS-THROUGH
MORTGAGE CERTIFICATES--(2.5%)
American Mortgage Trust Series
1993-3 Class 3B, 8.190%,
due 09/27/1922 834,783 807,928
<PAGE>
<CAPTION>
Par Market
Value Value
---------- ----------
<S> <C> <C>
CONVENTIONAL PASS-THROUGH
MORTGAGE CERTIFICATES (Continued)
Bank of America, N.A. Series
1979-3, 9.500%, due 11/01/08 $ 99,812 $ 103,056
Citicorp Mortgage Securities, Inc.
Series 1987-10, 10.000%,
due 07/01/17 219,388 234,814
Comfed Savings Bank Adjustable Rate
Mortgage Series 1987-1A,
9.243%, due 01/01/08 207,167 176,092
General Motors Acceptance
Corporation Mortgage, 12.875%,
due 07/01/14 1,902 1,918
Glendale Federal Savings & Loan
Series 1978-A, 9.125%,
due 01/25/08 40,161 41,190
Home Savings of America Series
1979-4, 10.000%, due 07/01/09 74,878 77,616
Imperial Savings & Loan Adjustable
Rate Mortgage Series 1987-4A,
9.800%, due 07/25/17 51,675 55,050
Kidder Peabody Acceptance Corp.
Series 1993-C1, 6.800%,
due 07/25/17 72,426 73,897
Merrill Lynch Mortgage Investors,
Inc. Adjustable Rate Mortgage
Series 1987-A, 4.870%,
due 11/15/26 120,827 118,260
Republic Federal Savings & Loan
Association, Series 1987-1,
7.500%, due 02/28/17 15,064 15,073
Residential Funding Corp. Series
1987-S-9, 10.500%, due 09/01/17 61,554 66,479
Sears Mortgage Securities Corp.
Series 1987-A, 6.500%,
due 03/25/17 44,009 43,016
Security Pacific National Bank
Series 1987-B, 8.500%,
due 09/01/16 73,858 75,358
----------
Total Conventional Pass-Through
Mortgage Certificates
(Cost $1,809,921) 1,889,747
----------
<PAGE>
CORPORATE BONDS--(0.5%)
Utilities
Commonwealth Edison Company
7.375%, due 09/15/02 (Cost $348,548) 350,000 357,928
----------
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS (Continued)
SteinRoe Variable Investment Trust Mortgage Securities Income Fund /
June 30, 1995 (Unaudited)
Par Market
Value Value
----------- -----------
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE
CORPORATE CERTIFICATES--(17.7%)
8.500% due 05/01/06 $ 236,554 $ 245,132
7.500% due 03/01/08 3,166,376 3,215,977
12.000% due 07/01/13 140,739 156,832
12.000% due 07/01/20 1,661,766 1,865,283
7.500% due 02/01/23 1,483,860 1,493,595
7.500% due 03/01/23 5,258,410 5,273,186
7.500% due 05/01/24 876,161 878,623
-----------
Total Federal Home Loan Mortgage
Corp. Certificates
(Cost $12,826,842) 12,883,496
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION CERTIFICATES--(26.7%)
10.000% due 05/01/01 11,485 12,077
9.000% due 05/01/05 140,703 146,596
7.000% due 11/01/08 (c) 1,650,000 1,652,574
6.000% due 04/01/09 10,439,047 10,096,542
8.500% due 03/01/17 271,729 282,003
6.000% due 12/01/23 975,046 914,106
6.000% due 02/01/24 975,383 914,421
8.500% due 12/01/24 3,420,397 3,528,345
8.000% due 02/01/25 (c) 2,250,000 2,292,188
-----------
Total Federal National Mortgage
Association Certificates
(Cost $19,560,720) 19,838,852
-----------
<PAGE>
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION CERTIFICATES--(17.3%)
6.500% due 10/15/25 ARM (c) 3,000,000 3,033,750
7.500% due 10/01/23 28,766 28,919
8.000% due 08/15/07 355,898 366,244
8.000% due 04/15/08 1,449,748 1,495,493
8.000% due 07/15/08 794,263 819,330
8.000% due 08/15/21 366,893 389,827
8.000% due 12/15/21 596,587 612,062
8.000% due 08/15/22 1,209,243 1,240,611
8.500% due 02/15/17 344,056 359,215
9.000% due 02/15/09 395,946 419,085
9.000% due 06/15/16 897,034 949,457
9.000% due 11/15/16 111,696 118,223
9.000% due 01/15/17 407,268 431,068
9.000% due 02/15/17 322,425 341,267
9.000% due 03/15/17 387,190 409,817
9.000% due 01/15/20 222,856 234,765
9.500% due 08/15/22 428,541 455,329
10.000% due 11/15/09 531,080 577,885
10.000% due 6/15/10 13,878 15,101
<PAGE>
<CAPTION>
Par Market
Value Value
----------- -----------
<S> <C> <C>
10.000% due 10/15/10 $ 227,076 $ 247,088
10.000% due 06/15/19 119,890 130,456
10.000% due 11/15/19 129,072 140,447
-----------
Total Government National Mortgage
Association Certificates
(Cost $12,797,765) 12,815,439
-----------
REAL ESTATE MORTGAGE
INVESTMENT CONDUITS--(14.5%)
Federal Home Loan Mortgage
Corporation Series 197-H,
8.500%, due 05/15/01 1,535,690 1,547,960
Federal Home Loan Mortgage
Corporation Series 11-C,
9.500%, due 04/15/19 154,354 161,042
Federal National Mortgage
Association REMIC Trust Series
1994-86PD, 6.000%,
due 06/25/04 3,750,000 3,688,163
Federal National Mortgage
Association REMIC Trust Series
1992-37PE, 7.000%,
due 01/25/18 1,750,000 1,750,630
Federal National Mortgage
Association REMIC Trust Series
1988-4Z, 9.250%, due 03/25/18 1,607,111 1,694,426
Federal National Mortgage
Association REMIC Trust Series
1991-91SA, (effective yield 14.370%),
due 07/25/98 16 95,340
Prudential Home Mortgage REMIC
Trust Series 1992-A-B2-2,
7.900%, due 11/25/22 2,000,000 1,823,960
-----------
Total Real Estate Mortgage
Investment Conduits
(Cost $10,782,982) 10,761,521
-----------
<PAGE>
U.S. GOVERNMENT SECURITIES AND
AGENCY OBLIGATIONS--(6.4%)
Federal National Mortgage
Association, 8.000%,
due 4/13/05 2,000,000 2,068,660
U.S. Treasury Bonds, 6.250%,
due 08/15/23 750,000 708,165
U.S. Treasury Bonds, 8.750%,
due 05/15/17 750,000 923,190
U.S. Treasury Notes, 7.500%,
due 11/15/01 1,000,000 1,076,070
-----------
Total U.S. Government Securities
and Agency Obligations
(Cost $4,656,485) 4,776,085
-----------
<PAGE>
<CAPTION>
SCHEDULE OF INVESTMENTS Par Market
(Continued) Value Value
---------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS--(10.5%)
American Honda Finance Corp.,
5.980%, due 07/25/95 $3,000,000 $ 2,988,040
Finova Capital Corp.,
6.050%, due 07/19/95 1,700,000 1,694,858
General Signal Corp.,
5.980%, due 07/17/95 2,000,000 1,994,684
Lehman Brothers Holdings, Inc.,
6.350%, due 07/03/95 1,118,000 1,117,606
-----------
Total Short-Term Investments
(Cost $7,795,188) 7,795,188
-----------
Total Investments--(108.8%)
(Cost $79,828,395) 80,734,396
Other Assets and Liabilities--Net--(-8.8%) (6,533,153)
-----------
Net Assets (100.0%) $74,201,243
===========
<FN>
(a) The cost of investments for federal income tax purposes is identical.
Gross unrealized appreciation and depreciation at June 30, 1995 is as follows:
Gross unrealized appreciation: $1,617,417
Gross unrealized depreciation: (711,416)
----------
Net unrealized appreciation: $ 906,001
==========
(b) Private placement security. These securities generally are issued to
institutional investors, such as the Fund who agree that they are purchasing
the securities for investment and not with a view to public distribution. Any
resale by the Fund must be in an exempt transaction, normally to other
institutional investors.
(c) Security purchased on a delay delivery basis; see notes to the financial
statements.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Mortgage Securities Income Fund / June 30, 1995 (Unaudited)
<S> <C>
Assets:
Investments, at market value (identified cost $79,828,395) $80,734,396
Cash 49,534
Receivable for fund shares sold 23,541
Interest receivable 519,634
Other assets 36,920
-----------
Total assets 81,364,025
-----------
Liabilities:
Payable for purchase of investments 7,019,276
Payable for fund shares repurchased 79,311
Management fee payable 24,400
Administrative fee payable 18,100
Accrued expenses payable 21,695
-----------
Total liabilities 7,162,782
-----------
Net assets $74,201,243
===========
Net assets represented by:
Paid-in capital $73,964,219
Accumulated undistributed net investment income 2,597,653
Accumulated net realized losses on investments (3,266,630)
Net unrealized appreciation on investments 906,001
-----------
Total net assets applicable to outstanding shares of
beneficial interest $74,201,243
===========
Shares of beneficial interest outstanding 7,279,611
===========
Net asset value per share $10.19
======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
<S> <C>
Interest income $2,867,240
----------
Expenses:
Management fee 144,652
Administrative fee 54,239
Custodian fee 22,875
Accounting fee 12,782
Transfer agent fee 3,720
Audit expense 11,692
Printing expense 3,258
Trustees' expense 4,163
Miscellaneous expense 3,106
-----------
Total expenses 260,487
Less:
Expenses reimbursable by Investment Adviser (7,349)
-----------
Net expenses 253,138
-----------
Net investment income 2,614,102
Realized and unrealized gains on investments:
Net realized gains on investments 285,554
Change in unrealized appreciation or depreciation
on investments 3,945,949
-----------
Net increase in net assets resulting from operations $6,845,605
===========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Mortgage Securities Income Fund
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ -------------
<S> <C> <C>
Operations:
Net investment income $ 2,614,102 $ 5,452,061
Net realized gain (loss) on investments 285,554 (3,503,695)
Change in unrealized appreciation or depreciation
on investments 3,945,949 (3,358,291)
------------ ------------
Net increase (decrease) in net assets resulting
from operations 6,845,605 (1,409,925)
------------ ------------
Distributions declared from:
Net investment income -- (5,285,435)
------------ ------------
Fund share transactions:
Proceeds from fund shares sold 3,299,742 4,366,162
Cost of fund shares repurchased (8,363,614) (21,732,135)
Distributions reinvested -- 5,285,435
------------ ------------
Net decrease in net assets resulting from fund
share transactions (5,063,872) (12,080,538)
------------ ------------
Total increase (decrease) in net assets 1,781,733 (18,775,898)
Net assets:
Beginning of period 72,419,510 91,195,408
------------ ------------
End of period $ 74,201,243 $ 72,419,510
============= =============
Accumulated undistributed (overdistributed) net
investment income
included in ending net assets $ 2,597,653 $ (16,449)
============= =============
Analysis of changes in shares of beneficial interest:
Shares sold 355,483 435,739
Shares redeemed (861,513) (2,167,973)
Distributions reinvested -- 569,551
------------ ------------
Net decrease (526,030) (1,162,683)
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Mortgage Securities Income Fund
<CAPTION>
Six Months Ended
June 30, 1995 Year Ended December 31,
-------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 9.28 $ 10.17 $ 10.26 $ 10.42 $ 9.74 $ 9.69
-------- -------- -------- -------- ------- -------
Net investment income 0.36 0.73 0.65 0.63 0.67 0.80
Net realized and unrealized gains (losses)
on investments 0.55 (0.89) (0.01) (0.01) 0.73 0.08
-------- -------- -------- -------- ------- -------
Total from investment operations 0.91 (0.16) 0.64 0.62 1.40 0.88
-------- -------- -------- -------- ------- -------
Less distributions:
Dividends from net investment income -- (0.73) (0.65) (0.62) (0.66) (0.83)
Distributions from net realized gains
on investments -- -- (0.08) (0.16) (0.06) --
-------- -------- -------- -------- ------- -------
Total distributions -- (0.73) (0.73) (0.78) (0.72) (0.83)
-------- -------- -------- -------- ------- -------
Net asset value, end of period $ 10.19 $ 9.28 $ 10.17 $ 10.26 $ 10.42 $ 9.74
======== ======== ======== ======== ======= =======
Total return:
Total investment return 9.69%(d)(1.57)%(b) 6.26%(b) 5.95% 14.48% 9.10%(b)
Ratios/supplemental data:
Net assets, end of period (000) $74,201 $72,420 $91,195 $67,353 $48,559 $29,992
Ratio of net expenses to average
net assets 0.70%(a),(c) 0.70%(a) 0.76%(a) 0.90% 0.99% 1.00%(a)
Ratio of net investment income to
average net assets 7.25%(c) 6.71%(b) 6.64%(b) 6.72% 7.26% 8.09%(b)
Portfolio turnover ratio 60%(d) 241% 187% 169% 133% 81%
<FN>
(a) If the Fund had paid all of its expenses and there had been no
reimbursement from the Investment Adviser and the Administrator, as described
in Note 5, this ratio would have been 0.72% for the six months ended June 30,
1995, 0.71%, 0.76%, and 1.22% for the years ended December 31, 1994, 1993, and
1990, respectively.
(b) Computed giving effect to the Investment Adviser's and the Administrator's
expense limitation undertaking.
(c) Annualized.
(d) Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
SteinRoe Variable Investment Trust Cash Income Fund / June 30, 1995 (Unaudited)
<CAPTION>
Par Market
Value Value
--------- -----------
<S> <C> <C>
COMMERCIAL PAPER--(95.9%)
Business Credit Institution--(13.0%)
American Honda Finance Corp.
(gtd. by Honda Motor Co. Inc.),
6.030%, due 07/26/95 $3,000,000 $2,988,500
Finova Capital Corp., 6.164%,
due 07/12/95 3,000,000 2,995,387
Whirlpool Financial Corp., 6.002%,
due 07/11/95 3,000,000 2,996,027
----------
8,979,914
----------
Commercial Banks--(13.6%)
Banca CRT Financial Corp.
(gtd. by Cassa di Risparmio di Torino)
6.079%, due 08/02/95 3,400,000 3,383,000
Multibanco Comermex SA (L.O.C.
Societe General), 6.025%,
due 07/06/95 3,000,000 2,998,503
Svenska Handlesbanken Inc.
(gtd. by Svenska Handlesbaken),
6.298%., due 07/10/95 3,000,000 2,996,401
----------
9,377,904
----------
Computers--(4.2%)
CSC Enterprises, 6.057%, due 09/15/95 3,000,000 2,963,308
----------
Food/Beverage/Tobacco--(4.2%)
American Home Food Products, Inc.
(gtd. by American Home Products
Corp.), 6.015%, due 08/02/95 3,000,000 2,985,050
----------
<PAGE>
Other Financial--(48.0%)
Associates Corporation North
America, 6.203%, due 07/03/95 2,834,000 2,834,000
Caterpillar Financial Services Corp.,
6.312%, due 10/30/95 3,000,000 2,939,310
Countrywide Funding Corp., 6.028%,
due 07/17/95 3,000,000 2,993,000
Fleet Mortgage Group, Inc., 6.027%,
due 07/19/95 3,000,000 2,992,000
Goldman Sachs Group Ltd, 7.319%,
due 09/15/95 3,900,000 3,840,496
ITT Corp., 6.007%, due 07/05/95 3,000,000 2,999,003
ITT Hartford Group, Inc., 6.017%,
due 07/07/95 3,000,000 2,998,000
JV Receivables Corp., 6.003%,
due 09/29/95 2,524,000 2,487,537
<PAGE>
<CAPTION>
Par Market
Value Value
--------- -----------
<S> <C> <C>
Other Financial (Continued)
NS Finance Inc. (L.O.C. Industrial Bank
of Japan, Ltd.), 6.034%, due 07/25/95 $3,000,000 $ 2,989,000
Receivables Capital Corp., 6.022%,
due 07/18/95 3,015,000 3,007,462
Salomon Inc., 6.129%, due 07/13/95 3,000,000 2,994,917
-----------
33,074,725
-----------
Retail Trade--(8.6%)
Dayton Hudson Corp., 6.031%,
due 07/20/95 2,700,000 2,692,350
Southland Corporation, (gtd. by
Ito-Yokado Company, Ltd.),
6.001%, due 07/12/95 3,000,000 2,995,515
-----------
5,687,865
-----------
Rubber/Plastic--(4.3%)
Bridgestone/Firestone Inc.(L.O.C.
Fuji Bank), 6.036%, due 07/14/95 3,000,000 2,994,500
-----------
Total Commercial Paper
(Cost $66,064,712) 66,063,266
-----------
YANKEE CERTIFICATE OF DEPOSIT--(4.4%)
Financial Services
Sanwa Bank Ltd., 6.620%,
due 04/29/96 3,000,000 3,000,000
-----------
Total Investments--(100.3%)
(Cost $69,063,266)(a) 69,063,266
Other Assets and Liabilities--Net--(-0.3%) (181,560
-----------
Net Assets (100%) $68,881,706
===========
<FN>
(a)The cost of investments for federal income tax purposes
is identical. There is no unrealized appreciation or depreciation
at June 30, 1995.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SteinRoe Variable Investment Trust Cash Income Fund /
June 30, 1995 (Unaudited)
<S> <C>
Assets:
Investments, at market value (identified cost $69,063,266) $69,063,266
Cash 51,472
Receivable for fund shares sold 359,638
Interest receivable 40,890
Other assets 12,940
-----------
Total assets 69,528,206
-----------
Liabilities:
Payable for fund shares repurchased 251,721
Management fee payable 21,255
Administrative fee payable 9,110
Accrued expenses payable 24,273
Income distribution payable 340,141
-----------
Total liabilities 646,500
-----------
Net assets $68,881,706
===========
Net assets represented by:
Paid-in capital $68,881,706
-----------
Total net assets applicable to outstanding shares of
beneficial interest $68,881,706
===========
Shares of beneficial interest outstanding 68,881,986
===========
Net asset value per share $1.00
=====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
<S> <C>
Interest income $2,223,718
----------
Expenses:
Management fee 124,522
Administrative fee 53,366
Custodian fee 12,859
Accounting fees 12,761
Transfer agent fee 3,761
Audit fees 9,814
Printing expense 4,209
Trustees' expense 2,562
Miscellaneous expense 3,408
----------
Total expenses 227,262
----------
Net investment income 1,996,456
----------
Net increase in net assets resulting from operations $1,996,456
==========
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
SteinRoe Variable Investment Trust Cash Income Fund
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------ -------------
<S> <C> <C>
Operations:
Net investment income $ 1,996,456 $ 3,158,001
------------ ------------
Net increase in net assets resulting from operations 1,996,456 3,158,001
------------ ------------
Distributions declared from:
Net investment income (1,996,456) (3,158,001)
------------ ------------
Fund share transactions:
Proceeds from fund shares sold 29,312,298 58,444,349
Cost of fund shares repurchased (41,125,472) (65,952,846)
Distributions reinvested 1,996,456 3,158,001
------------ ------------
Net decrease in net assets resulting from fund
share transactions (9,816,718) (4,350,496)
------------ ------------
Total decrease in net assets (9,816,718) (4,350,496)
Net assets:
Beginning of period 78,698,424 83,048,920
------------ ------------
End of period $ 68,881,706 $ 78,698,424
============ ============
Analysis of changes in shares of beneficial interest:
Shares sold 29,312,298 58,444,349
Shares redeemed (41,125,472) (65,952,846)
Distributions reinvested 1,996,456 3,158,001
------------ ------------
Net decrease $(9,816,718) $(4,350,496)
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SteinRoe Variable Investment Trust Cash Income Fund
<CAPTION>
Six Months Ended
June 30, 1995 Year Ended December 31,
----------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990 1989
---------------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- -------
Net investment income 0.028 0.037 0.027 0.034 0.056 0.076 0.087
------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.028) (0.037) (0.027) (0.034) (0.056) (0.076) (0.087)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= =======
Total return:
Total investment return 2.79%(b) 3.81% 2.70% 3.48% 5.79% 7.89% 9.07%
Ratios/supplemental data:
Net assets, end of period (000) $69,882 $78,698 $83,049 $70,821 $77,676 $94,462 $94,313
Ratio of expenses to average net assets 0.64%(a) 0.62% 0.65% 0.67% 0.67% 0.66% 0.66%
Ratio of net investment income to average
net assets 5.66%(a) 3.73% 2.68% 3.42% 5.67% 7.61% 8.68%
<FN>
(a) Annualized.
(b) Not annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note 1. Organization and Accounting Policies
SteinRoe Variable Investment Trust (the "Trust"), an open-end management
investment company, was organized as a Massachusetts business trust on June 9,
1987. At June 30, 1995 the Trust consisted of seven diversified Funds with
differing investment objectives, policies, and restrictions: Capital
Appreciation Fund, Managed Growth Stock Fund, Strategic Managed Assets Fund,
Managed Assets Fund, Managed Income Fund, Mortgage Securities Income Fund, and
Cash Income Fund (individually referred to as a "Fund", or collectively
referred to as the "Funds").
Shares of the Trust are available and are being marketed exclusively as a
pooled funding vehicle for variable annuity contracts ("VA contracts") and
Variable Life Insurance Policies ("VLI policies") of Keyport Life Insurance
Company ("Keyport"), and of Keyport America Life Insurance Company, and the VA
contracts of Liberty Life Assurance Company of Boston ("Liberty Life") and, in
the case of Capital Appreciation Fund, also of Transamerica Occidental Life
Insurance Company and First Transamerica Life Insurance Company. On January 3,
1995, Stein Roe & Farnham Incorporated (the "Adviser"), assumed all
administrative duties. The Adviser provides investment advisory services to
the Funds as well as management, and administration services. Stein Roe
Services, Inc. provides transfer agent services. Keyport Financial Services
Corp., a subsidiary of Keyport, serves as the underwriter of the Trust.
Keyport, the Adviser and the Transfer Agent are direct subsidiaries of Liberty
Financial Companies, Inc. Liberty Life is a subsidiary of Liberty Mutual
Insurance Company and Liberty Mutual Fire Insurance Company.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles.
<PAGE>
Valuation of Investments--Portfolio securities listed on an exchange and
over-the-counter securities quoted on the NASDAQ system are valued on the
basis of the last sale on the date as of which the valuation is made, or,
lacking any sales, at the current bid prices. Over-the-counter securities not
quoted on the NASDAQ system are valued at the latest bid quotation. For
foreign securities, security valuations are generally based upon market
quotations which, depending upon local convention or regulation, may be last
sale price, last bid or asked price, or the mean between last bid and asked
prices as of, in each case, the close of the appropriate exchange or other
designated time. Long-term debt securities are valued on the basis of
dealer-supplied quotations or valuations furnished by a pricing service which
may employ electronic data processing techniques, including the "matrix"
system to determine the valuations. Securities for which reliable quotations
are not readily available are valued at fair value, as determined in good
faith and pursuant to procedures established by the Trustees. Money market
instruments with remaining maturities of 60 days or less are valued at
amortized cost unless the Trustees determine this does not represent fair
value. The Cash Income Fund values investments utilizing the amortized cost
valuation technique permitted in accordance with Rule 2a-7 under the
Investment Company Act of 1940, which requires the Fund to comply with certain
conditions. This technique involves valuing a portfolio security initially at
its cost and thereafter assuming a constant amortization to maturity of any
discount or premium.
Federal Income Taxes--The Funds now qualify and intend to continue qualifying
as "regulated investment companies" and as such (and by complying with the
applicable provisions of the Internal Revenue Code) will not be subject to
Federal income tax on taxable income (including realized capital gains)
distributed to shareholders. By making the distributions required under the
Internal Revenue Code, the Funds intend to avoid excise tax liability.
Foreign Currency Transactions--Certain Funds have entered into foreign
exchange contracts for the settlement of purchases and sales of securities
denominated in a foreign currency to reduce the risk to the Funds from adverse
changes in the relationship between the U.S. dollar and the foreign currency.
The face or contract amount in U.S. dollars reflects the total exposure the
Fund has in that particular currency contract. In the event that the
counterparty in the foreign exchange contract fails to meet the terms of the
contract, the Fund could be exposed to the effects of changes in the
relationship between the U.S. dollar and the foreign currency.
Delayed Delivery Transactions--The Funds may purchase or sell securities on a
when-issued or forward commitment basis. Payment and delivery may take place a
month or more after the date of the transaction. The price of the underlying
securities and the date when the securities will be delivered and paid for are
fixed at the time the transaction is negotiated. This may increase the risk if
the other party involved in the transaction fails to deliver and causes the
Funds to subsequently invest at less advantageous yields. The Funds identify
securities as segregated in their custodial records with a value at least
equal to the amount of the purchase commitment.
<PAGE>
Discounts--Discounts on debt securities are amortized in accordance with
Internal Revenue Code requirements.
Reclassification--In accordance with the Statement of Position 93-2
Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gains and Return of Capital Distributions by Investment Companies,
permanent book and tax differences are reclassified from accumulated net gains
on investments, less distributions to paid-in-capital at fiscal year end,
December 31. Net realized gains and net assets are not affected by these
reclassifications.
In all cases, net investment income, net realized gains (losses) on
investments, and net assets were not affected by this change.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Other--Security transactions are accounted for on trade date. Interest income
is recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. The Funds have adopted
Statement of Position 93-4, Foreign Currency Accounting and Financial
Statement Presentation for Investment Companies. Accordingly, net realized and
unrealized gains (losses) on foreign currency transactions include the
fluctuation in exchange rates on gains and losses between trade and settlement
dates on security transactions, gains and losses arising from the disposition
of foreign currency, and currency gains and losses between the accrual and
payment dates on dividend and interest income and foreign withholding taxes.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
<PAGE>
Note 2. Fund Share Transactions
Each Fund's capitalization consists of an unlimited number of shares of
beneficial interest without par value that represent a separate series of the
Trust. Each share of a Fund represents an equal proportionate beneficial
interest in that Fund and, when issued and outstanding, is fully paid and
non-assessable. Shareholders would be entitled to share proportionally in the
net assets of a Fund available for distribution to shareholders upon
liquidation of a Fund.
<PAGE>
Note 3. Security Transactions
Realized gains and losses are computed on the identified cost basis for both
financial reporting and Federal income tax purposes. At June 30, 1995, the
Managed Income and Mortgage Securities Income Funds had capital loss
carryovers of $1,706,289 and $3,168,590, respectively, which will expire in
2002, if not utilized. The cost of investments purchased and proceeds from
investments sold excluding short-term investments for the year ended June 30,
1995 for the Funds excluding Cash Income Fund were as follows:
<TABLE>
<CAPTION>
Managed Strategic
Capital Growth Managed
Appreciation Stock Assets
Fund Fund Fund
------------ ----------- --------------
<S> <C> <C> <C>
Cost of investments
purchased $117,431,190 $83,011,943 $43,093,242
Proceeds from
investments sold 79,889,751 19,490,719 60,611,766
<CAPTION>
Mortgage
Managed Managed Securities
Assets Income Income
Fund Fund Fund
------------ ----------- --------------
<S> <C> <C> <C>
Cost of investments
purchased $178,069,716 $33,640,919 $70,377,419
Proceeds from
investments sold 51,365,257 14,833,495 42,721,112
</TABLE>
<PAGE>
Note 4. Distributions to shareholders
The Funds, with the exception of the Cash Income Fund, intend to distribute as
dividends or capital gain distributions, at least annually, substantially all
of their net investment income and net profits realized from the sale of
portfolio securities. All dividends and distributions are reinvested in
additional shares of the Funds at net asset value as of the record date of the
distribution. The Cash Income Fund declares dividends daily and reinvests all
dividends declared monthly in additional shares at net asset value. Income and
capital gain distributions are determined in accordance with Federal income
tax regulations, which may differ from generally accepted accounting
principles.
<PAGE>
Note 5. Management and Administrative Fees
The Funds have advisory and administrative agreements with the Adviser. The
following investment advisory fee rates were in effect as of June 30, 1995:
<TABLE>
<CAPTION>
Annual rate(s) as a
per cent of
Fund(s) average daily net assets
- ------- ----------------------
<S> <C>
Capital Appreciation Fund .50 of 1%
and
Managed Growth Stock Fund
Strategic Managed Assets Fund .55 of 1%
Managed Assets Fund .45 of 1%
Managed Income Fund .40 of 1%
and
Mortgage Securities Income Fund
Cash Income Fund .35 of 1%
</TABLE>
As of June 30, 1995, for all the Funds, the administrative fee is at an annual
rate of .15 of 1%.
Both the investment advisory fees and the administrative fees are computed
daily and paid monthly.
The Adviser has agreed to reimburse all expenses, including management fees,
incurred by the Funds as follows:
<TABLE>
<CAPTION>
Fund(s) Expenses exceeding
- ------- -------------------------
<S> <C>
Capital Appreciation Fund .80 of 1% of average daily net assets
and
Managed Growth Stock Fund
Strategic Managed Assets Fund .85 of 1% of average daily net assets
Managed Assets Fund .75 of 1% of average daily net assets
Managed Income Fund .80 of 1% of average daily net assets
Mortgage Securities Income Fund .70 of 1% of average daily net assets
Cash Income Fund .65 of 1% of average daily net assets
</TABLE>
This agreement expires April 30, 1996.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At June 30, 1995, such total expenses incurred and amounts reimbursable by the
Adviser were as follows:
<TABLE>
<CAPTION>
Strategic Mortgage
Managed Managed Securities
Assets Income Income
Fund Fund Fund
--------- ---------- ----------
<S> <C> <C> <C>
Total expenses incurred $234,970 $162,858 $260,487
Amount reimbursable
by the Adviser and
Administrator 6,217 18,447 7,349
</TABLE>
<PAGE>
Note 6. Investment in Repurchase Agreements
Each Fund may enter into repurchase agreements with banks, broker-dealer firms
and other recognized financial institutions whereby such institutions sell an
instrument in which a Fund may invest to that Fund, and the seller agrees, at
the time of the sale, to repurchase that instrument at a specified time and
price. The Funds require the seller of the instrument to maintain on deposit
with the Funds' custodian bank or in the Federal Reserve Book-Entry System
securities in an amount at all times equal to or in excess of the value of the
repurchase agreement plus accrued interest. In the event that the seller of
the instrument defaults on the repurchase obligation, a Fund could receive
less than the repurchase price on the sale of the securities to another party
or could be subject to delays in selling the securities.
<PAGE>
Note 7. Substitutions
Keyport and certain of its affiliates have filed with the Securities and
Exchange Commission an application for an exemptive order permitting
substitution of (i) shares of Managed Assets Fund ("MAF") for shares of
Strategic Managed Assets Fund ("SMAF") and (ii) shares of the Colonial-Keyport
Strategic Income Fund ("CKSIF") for the shares of Managed Income Fund ("MIF").
CKSIF is a series fund of the Keyport Variable Investment Trust ("KVIT"). KVIT
also is a funding vehicle for VA contracts and VLI policies of Affiliated
Participating Insurance Companies. Pending action on such application, shares
of SMAF and MIF are no longer being offered for new sales. However, additional
shares of such Funds continue to be issued prior to the effective time of such
substitutions in connection with reinvested distributions.
* Total return performance includes changes in share price and reinvestment of
income and capital gains distributions. Past performance is no guarantee of
future results. Share price and investment return will vary, so you may have a
gain or a loss when you sell shares. The peer group for Managed Assets Fund
and Strategic Managed Assets Fund, as defined by Lipper Analytical Services,
Inc., includes funds that allocate their investments across various asset
classes, including common stocks, bonds and money market instruments, with a
focus on total return. There were 62 funds in this peer group for the
six-month period ended June 30, 1995. Cash Income Fund's peer group, as
defined by Lipper Analytical Services, Inc., an independent monitor of mutual
fund performance, includes funds that invest in high-quality financial
instruments rated in the top two grades with dollar-weighted average
maturities of less than 90 days. There were 86 funds in this peer group for
the six-month period ended June 30, 1995. Managed Income Fund's peer group, as
defined by Lipper Analytical Services, Inc., includes funds that invest at
least 65 percent of their assets in corporate and government debt issues rated
in the top four grades. There were 39 funds in this peer group for the
six-month period ended June 30, 1995. The Lehman Corporate Bond Index is an
unmanaged group of intermediate- and long-term bonds, the Lehman
Mortgaged-backed Securities Index is an unmanaged group of mortgage-backed
securities and the S&P 500 is an unmanaged group of stocks. All of these
indices differ from the composition of each SteinRoe Fund, and each index is
not available for direct investment.
<PAGE>
Investment Adviser
Administrator
Stein Roe & Farnham Incorporated
One South Wacker Drive
Chicago, Illinois 60606
Transfer Agent
SteinRoe Services, Inc.
One South Wacker Drive
Chicago, Illinois 60606
Distributor
Keyport Financial Services Corp.
125 High Street
Boston, Massachusetts 02110
Client Services
Keyport Life Insurance Company
125 High Street
Boston, Massachusetts 02110
800-367-3653 (Press 3)
Custodian
State Street Bank & Trust Company
P.O. Box 366
Boston, Massachusetts 02101
Independent Auditors
KPMG Peat Marwick LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
Legal Counsel
Bingham, Dana & Gould
150 Federal Street
Boston, Massachusetts 02110
The Trustees
John A. Bacon Jr.
Richard R. Christensen
Salvatore Macera
Dr. Thomas E. Stitzel
This report is authorized for use as sales literature only when accompanied by
a current prospectus of the Trust and a current prospectus for a variable
insurance product offered by Keyport Life Insurance Company, Keyport America
Life Insurance Company, or Liberty Life Assurance Company of Boston.
6/95 NIM 30m
