<PAGE>
AMERICAN NATIONAL INVESTMENT ACCOUNTS, INC. 2450 South Shore Boulevard, League
City, TX 77573
- --------------------------------------------------------------------------------
DIRECTORS
Ernest S. Barratt, Ph.D.
Allan W. Matthews
Lea McLeod Matthews
Michael W. McCroskey
Ann McLeod Moody
Edwin K. Nolan
Robert V. Shattuck, Jr.
Jamie G. Williams
Frank P. Williamson
OFFICERS
Michael W. McCroskey, President
Gordon D. Dixon, Vice President and
Portfolio Manager, Growth, Managed and Balanced Portfolios
Terry E. Frank, Vice President and
Portfolio Manager, Money Market Portfolio
Brenda T. Koelemay, Vice President and Treasurer
Emerson V. Unger, Vice President
Teresa E. Axelson, Vice President and Secretary
INVESTMENT ADVISOR AND MANAGER
Securities Management and Research, Inc.
P.O. Box 58969
Houston, TX 77258-8969
CUSTODIAN
Securities Management and Research, Inc.
P.O. Box 58969
Houston, TX 77258-8969
LEGAL COUNSEL
Greer, Herz & Adams, L.L.P.
One Moody Plaza
Galveston, Texas 77550
UNDERWRITER AND REDEMPTION AGENT
Securities Management and Research, Inc.
P.O. Box 58969
Houston, TX 77258-8969
TRANSFER AGENT, REGISTRAR AND DIVIDEND PAYING AGENT
Securities Management and Research, Inc.
P.O. Box 58969
Houston, TX 77258-8969
INDEPENDENT AUDITORS
Tait, Weller & Baker
8 Penn Center Plaza, Suite 800
Philadelphia, PA 19103-2108
<PAGE>
Securities Management and Research, Inc.
P.O. Box 58969
Houston, TX 77258-8969
FIRST-CLASS MAIL
U.S. POSTAGE
PAID
PERMIT NO. 89
GALVESTON, TEXAS
A N N U A L R E P O R T
AMERICAN
NATIONAL
INVESTMENT
ACCOUNTS
INC.
/ / GROWTH PORTFOLIO
/ / MANAGED PORTFOLIO
/ / BALANCED PORTFOLIO
/ / MONEY MARKET PORTFOLIO
ANNUAL REPORT
DECEMBER 31, 1999
"The financial statements
contained herein are
included for the general
information of our
shareholders. This annual
report is not authorized
for distribution to
<PAGE>
prospective investors
unless preceded or
accompanied by an effective
prospectus."
Form 9429
12/99
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
AEROSPACE--0.98%
Boeing Company 4,800 $ 199,500
AUTO & TRUCK MANUFACTURERS--1.11%
Ford Motor Company 1,500 80,156
General Motors Corporation 2,000 145,375
-----------
225,531
AUTO PARTS MANUFACTURERS--0.46%
Dana Corporation 3,100 92,806
BANKS--2.68%
Bank of America Corporation 2,000 100,375
Comerica, Incorporated 1,350 63,028
Morgan (J.P.) & Company 500 63,313
PNC Bank Corporation 1,600 71,200
U.S. Bancorp 5,200 123,825
Wells Fargo Company 3,000 121,312
-----------
543,053
BEVERAGES--2.10%
Anheuser-Busch Companies,
Incorporated 6,000 425,250
CHEMICALS--2.14%
B.F.Goodrich Company 3,136 86,240
Hercules, Incorporated 2,600 72,475
Monsanto Company 3,500 124,688
Praxair, Incorporated 3,000 150,937
-----------
434,340
COMMUNICATION EQUIPMENT--4.36%
Lucent Technologies, Incorporated 6,425 480,670
Nortel Networks Corporation 4,000 404,000
-----------
884,670
COMPUTER RELATED--8.04%
Apple Computer, Incorporated * 1,900 195,344
Cisco Systems, Incorporated * 5,100 546,338
EMC Corporation * 3,600 393,300
Sun Microsystems, Incorporated * 6,400 495,600
-----------
1,630,582
COMPUTER SOFTWARE--11.58%
BMC Software, Incorporated * 3,200 255,800
Microsoft Corporation * 7,200 840,600
Novell, Incorporated * 12,000 479,250
VERITAS Software Corporation * 5,400 772,875
-----------
2,348,525
COSMETICS/TOILETRIES--1.08%
Procter & Gamble Company 2,000 219,125
DIVERSIFIED--0.97%
Minnesota Mining and Manufacturing
Company 2,000 195,750
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
DRUGS--4.54%
Bristol-Myers Squibb Company 4,000 $ 256,750
Merck & Company, Incorporated 2,000 134,125
Pfizer, Incorporated 6,300 204,356
Schering-Plough Corporation 4,800 202,500
Warner-Lambert Company 1,500 122,906
-----------
920,637
ELECTRICAL EQUIPMENT--3.76%
General Electric Company 3,700 572,575
Solectron Corporation * 2,000 190,250
-----------
762,825
EXPLORATION & DRILLING--2.01%
Global Marine, Incorporated * 2,500 41,563
Kerr-McGee Corporation 2,100 130,200
Tidewater, Incorporated 3,500 126,000
Transocean Sedco Forex Incorporated 580 19,539
Union Pacific Resources Group,
Incorporated 7,000 89,250
-----------
406,552
FINANCIAL SERVICES--1.83%
American General Corporation 2,000 151,750
Countrywide Credit Industries,
Incorporated 3,000 75,750
Morgan Stanley, Dean Witter,
Discover and Company 1,000 142,750
-----------
370,250
FOOD PRODUCERS--2.45%
Bergen Brunswig Corporation
(Class A) 5,000 41,562
ConAgra, Incorporated 3,000 67,688
IBP, Incorporated 2,500 45,000
Interstate Bakeries Corporation 4,500 81,562
McCormick & Company, Incorporated 2,000 59,500
Smithfield Foods, Incorporated * 5,000 120,000
Universal Foods Corporation 4,000 81,500
-----------
496,812
FOOD RETAILERS--1.26%
Albertson's, Incorporated 2,600 83,850
Safeway, Incorporated* 4,800 170,700
-----------
254,550
FURNITURE/APPLIANCES--1.09%
Black & Decker Corporation 3,000 156,750
Whirlpool Corporation 1,000 65,063
-----------
221,813
HOMEBUILDING/SUPPLIES--0.23%
Centex Corporation 1,900 46,906
INSURANCE COMPANIES--3.46%
CIGNA Corporation 2,100 169,181
Citigroup, Incorporated 8,250 458,391
Conseco, Incorporated 4,100 73,287
-----------
700,859
</TABLE>
1
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
GROWTH PORTFOLIO, CONTINUED
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
LEISURE TIME--0.44%
Brunswick Corporation 4,000 $ 89,000
MACHINERY/EQUIPMENT--0.43%
Deere & Company 2,000 86,750
MEDIA - TV/RADIO/CABLE--0.76%
MediaOne Group, Incorporated * 2,000 153,625
MEDICAL PRODUCTS/SUPPLIES--0.50%
Beckman Coulter, Incorporated 2,000 101,750
MEDICAL SERVICES--0.55%
Aetna, Incorporated 2,000 111,625
MANUFACTURING - DIVERSIFIED--1.50%
Tyco International LTD 7,800 303,225
NATURAL GAS--1.31%
Enron Corporation 6,000 266,250
OIL DOMESTIC--0.50%
Unocal Corporation 3,000 100,688
OIL INTERNATIONAL--3.52%
BP Amoco p.l.c. ADR 2,646 156,941
Chevron Corporation 1,000 86,625
Royal Dutch Petroleum Company ADR 5,000 302,187
Schlumberger Limited 3,000 168,750
-----------
714,503
RETAIL GENERAL--1.44%
Federated Department Stores,
Incorporated * 2,600 131,463
J. C. Penney Company, Incorporated 8,100 161,494
-----------
292,957
RETAIL SPECIALTY--1.42%
Group 1 Automotive, Incorporated * 10,000 139,375
Loew's Companies, Incorporated 2,500 149,375
-----------
288,750
SEMICONDUCTORS--2.03%
Intel Corporation 5,000 411,562
SPECIALTY PRINTING/SERVICES--0.28%
Banta Corporation 2,500 56,406
STEEL--1.01%
Allegheny Technologies Incorporated 2,000 44,875
LTV Corporation 15,000 61,875
USX-U. S. Steel Group 3,000 99,000
-----------
205,750
TELECOM - LONG DISTANCE--3.05%
A T & T Corporation 5,300 268,975
MCI WorldCom Incorporated * 6,600 350,213
-----------
619,188
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
TELEPHONE--1.37%
Alltel Corporation 2,000 $ 165,375
US West, Incorporated New 1,554 111,888
-----------
277,263
TRUCKING & SHIPPING--0.78%
USFreightways Corporation 3,300 157,987
-----------
TOTAL COMMON STOCK--77.02%
(Cost $9,323,873) 15,617,615
-----------
<CAPTION>
FACE
COMMERCIAL PAPER AMOUNT
<S> <C> <C>
BEVERAGES--4.44%
Whitman Corporation, 6.60%, 01/03/00 $900,000 899,669
ELECTRIC POWER--3.75%
Minnesota Power & Light Company,
6.60%, 01/06/00 213,000 212,804
Nevada Power Company, 7.10%,
01/04/00 548,000 547,675
-----------
760,479
FINANCIAL SERVICES--0.65%
Penn Power & Light Energy Trust,
6.80%, 01/18/00 132,000 131,575
FOOD PRODUCERS--3.29%
ConAgra, Incorporated, 6.62%,
01/05/00 667,000 666,508
FURNITURE/APPLIANCES--1.73%
Maytag Corporation, 6.37%, 01/11/00 352,000 351,374
NATURAL GAS--1.15%
Sierra Pacific Power Company, 6.55%,
01/10/00 234,000 233,615
RETAIL - SPECIALTY--4.09%
Mattel, Incorporated, 6.80%,
01/18/00 833,000 830,318
UTILITY - MISCELLANEOUS--3.91%
Hawaiian Electric Industries
Incorporated, 5.65%, 01/13/00 794,000 792,504
-----------
TOTAL COMMERCIAL PAPER--23.01%
(Cost $4,666,042) 4,666,042
-----------
TOTAL INVESTMENTS--100.03%
(Cost $13,989,915) 20,283,657
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.03%) (6,943)
-----------
NET ASSETS--100.00% $20,276,714
===========
ABBREVIATIONS
ADR--American Depository Receipt
*--Non-income producing securities
</TABLE>
See notes to financial statements.
2
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
AUTO & TRUCK MANUFACTURERS--0.29%
General Motors Corporation 800 $ 58,150
AUTO PARTS MANUFACTURERS--0.24%
Dana Corporation 1,600 47,900
BANKS--2.58%
Bank of America Corporation 2,000 100,375
Comerica, Incorporated 3,000 140,063
Morgan (J.P.) & Company 500 63,312
PNC Bank Corporation 2,400 106,800
U.S. Bancorp 4,300 102,394
-----------
512,944
BEVERAGES--1.60%
Anheuser-Busch Companies,
Incorporated 4,500 318,938
CHEMICALS--1.93%
B.F.Goodrich Company 7,800 214,500
Hercules, Incorporated 2,300 64,112
Praxair, Incorporated 2,100 105,656
-----------
384,268
COMMUNICATIONS EQUIPMENT--3.07%
Lucent Technologies, Incorporated 4,906 367,030
Nortel Networks Corporation 2,400 242,400
-----------
609,430
COMPUTER RELATED--5.05%
Cisco Systems, Incorporated* 3,600 385,650
EMC Corporation* 3,400 371,450
Sun Microsystems, Incorporated* 3,200 247,800
-----------
1,004,900
COMPUTER SOFTWARE--7.05%
Microsoft Corporation* 5,300 618,775
Novell, Incorporated* 5,600 223,650
VERITAS Software Corporation* 3,900 558,188
-----------
1,400,613
DRUGS--1.70%
Schering-Plough Corporation 8,000 337,500
ELECTRICAL EQUIPMENT--3.92%
Emerson Electric Company 1,000 57,375
General Electric Company 3,500 541,625
Solectron Corporation* 1,900 180,737
-----------
779,737
ELECTRIC POWER--0.56%
Allegheny Energy, Incorporated 800 21,550
DTE Energy Company 2,000 62,750
UtiliCorp United, Incorporated 1,350 26,241
-----------
110,541
EXPLORATION & DRILLING--1.91%
Global Marine Incorporated* 1,600 26,600
Kerr-McGee Corporation 1,800 111,600
Tidewater, Incorporated 3,900 140,400
Transocean Sedco Forex
Incorporated 774 26,074
Union Pacific Resources Group,
Incorporated 5,846 74,537
-----------
379,211
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
FINANCIAL SERVICES--1.07%
Countrywide Credit Industries,
Incorporated 2,800 $ 70,700
Morgan Stanley, Dean Witter,
Discover and Company 1,000 142,750
-----------
213,450
FOODS PRODUCERS--2.32%
Bergen Brunswig Corporation
(Class A) 5,000 41,562
ConAgra, Incorporated 4,000 90,250
IBP, Incorporated 4,500 81,000
Interstate Bakeries Corporation 4,100 74,313
McCormick & Company, Incorporated 2,000 59,500
Smithfield Foods, Incorporated* 4,800 115,200
-----------
461,825
FOODS RETAILERS--0.85%
Albertson's, Incorporated 1,500 48,375
Safeway, Incorporated* 3,400 120,912
-----------
169,287
FURNITURE/APPLIANCES--1.06%
Black & Decker Corporation 2,800 146,300
Whirlpool Corporation 1,000 65,063
-----------
211,363
HOMEBUILDING/SUPPLIES--0.24%
Centex Corporation 1,900 46,906
INSURANCE COMPANIES--3.41%
CIGNA Corporation 1,800 145,012
Citigroup, Incorporated 7,800 433,388
Conseco, Incorporated 5,520 98,670
-----------
677,070
LEISURE TIME--0.34%
Brunswick Corporation 3,000 66,750
MACHINERY/EQUIPMENT--0.44%
Deere & Company 2,000 86,750
MEDIA-TV/RADIO/CABLE--0.39%
MediaOne Group, Incorporated* 1,000 76,812
MEDICAL PRODUCTS/SUPPLIES--1.35%
Abbott Laboratories 6,000 217,875
Beckman Coulter, Incorporated 1,000 50,875
-----------
268,750
MEDICAL SERVICES--0.34%
Aetna, Incorporated 1,200 66,975
MANUFACTURING - DIVERSIFIED--1.49%
Tyco International LTD 7,600 295,450
NATURAL GAS--1.03%
Enron Corporation 4,600 204,125
</TABLE>
3
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO, CONTINUED
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
OIL INTERNATIONAL--4.69%
Chevron Corporation 1,800 $ 155,925
Exxon Mobil Corporation 1,000 80,563
Royal Dutch Petroleum Company ADR 6,000 362,625
Schlumberger Limited 4,000 225,000
Texaco, Incorporated 2,000 108,625
-----------
932,738
REAL ESTATE/REITS--2.03%
Centerpoint Properties Corporation 1,800 64,575
Crescent Real Estate Equities
Company 5,000 91,875
Equity Office Properties Trust 10,000 246,250
-----------
402,700
RETAIL DISCOUNT--0.20%
Kmart Corporation* 4,000 40,250
RETAIL GENERAL--1.16%
Federated Department Stores,
Incorporated* 2,500 126,406
J. C. Penney Company, Incorporated 5,200 103,675
-----------
230,081
RETAIL SPECIALTY--0.60%
Loew's Companies, Incorporated 2,000 119,500
SEMICONDUCTORS--1.91%
Intel Corporation 4,600 378,637
SPECIALTY PRINTING/SERVICES--0.25%
Banta Corporation 2,200 49,638
STEEL--1.01%
Allegheny Technologies,
Incorporated 2,000 44,875
LTV Corporation 14,000 57,750
USX-U. S. Steel Group 3,000 99,000
-----------
201,625
TELECOM - CELLULAR--0.36%
GTE Corporation 1,000 70,562
TELECOM - LONG DISTANCE--2.58%
A T & T Corporation 3,200 162,400
MCI WorldCom Incorporated* 6,600 350,213
-----------
512,613
TELEPHONE--1.12%
Alletel Corporation 1,800 148,837
US West, Incorporated New 1,027 73,944
-----------
222,781
TOBACCO--0.25%
UST, Incorporated 2,000 50,375
TRUCKING & SHIPPING--0.72%
USFreightways Corporation 3,000 143,625
-----------
TOTAL COMMON STOCK--61.11%
(Cost $8,111,637) 12,144,770
-----------
<CAPTION>
FACE
COMMERCIAL PAPER AMOUNT VALUE
<S> <C> <C>
BEVERAGES--1.53%
Whitman Corporation, 6.60%,
01/03/00 $ 304,000 $ 303,888
CONTAINERS--0.58%
Crown Cork & Seal Company,
Incorporated, 7.35%, 01/19/00 115,000 114,577
ELECTRIC POWER--3.58%
Nevada Power Company, 7.10%,
01/04/00 713,000 712,577
ELECTRONICS--2.61%
Avnet Incorporated, 6.60%,
01/06/00 520,000 519,522
FINANCIAL SERVICES--7.60%
Dana Credit Corporation, 6.40%,
01/12/00 122,000 121,759
PS Colorado Credit Corporation,
7.15%, 01/07/00 838,000 837,000
Penn Power & Light Energy Trust,
6.80%, 01/18/00 554,000 552,215
-----------
1,510,974
FOOD PRODUDERS--3.31%
ConAgra, Incorporated, 6.62%,
01/05/00 658,000 657,514
FURNITURE/APPLIANCES--3.32%
Maytag Corporation, 6.37%,
01/11/00 660,000 658,827
GOVERNMENT AGENCY--5.03%
Federal Home Loan Mortgage
Corporation, 5.59%, 01/25/00 1,004,000 1,000,245
NATURAL GAS--2.01%
Sierra Pacific Power Company,
6.55%, 01/10/00 400,000 399,342
RETAIL - SPECIALTY--4.47%
Mattel, Incorporated, 6.80%,
01/18/00 892,000 889,128
UTILITY - MISCELLANEOUS--4.87%
Hawaiian Electric Industries
Incorporated, 5.65%, 01/13/00 969,000 967,175
-----------
TOTAL COMMERCIAL PAPER--38.91%
(Cost $7,733,769) 7,733,769
-----------
TOTAL INVESTMENTS--100.02%
(Cost $15,845,406) 19,878,539
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.02%) (4,779)
-----------
NET ASSETS--100.00% $19,873,760
===========
ABBREVIATIONS
ADR--American Depository Receipt
REIT--Real Estate Investment Trust
*--Non-income producing security
</TABLE>
See notes to financial statements.
4
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
AUTO & TRUCK MANUFACTURERS--0.51%
Ford Motor Company 500 $ 26,719
General Motors Corporation 300 21,806
----------
48,525
AUTO PARTS MANUFACTURERS--0.16%
Dana Corporation 500 14,969
BANKS--1.75%
Bank of America Corporation 600 30,113
Comerica, Incorporated 900 42,019
Morgan (J.P.) & Company 200 25,325
PNC Bank Corporation 400 17,800
U.S. Bancorp 1,000 23,812
Wells Fargo Company 700 28,306
----------
167,375
BEVERAGES--0.44%
Anheuser-Busch Companies,
Incorporated 600 42,525
CHEMICALS--0.92%
B.F.Goodrich Company 1,400 38,500
Hercules, Incorporated 500 13,938
Praxair, Incorporated 700 35,219
----------
87,657
COMMUNICATIONS EQUIPMENT--2.41%
Lucent Technologies, Incorporated 2,000 149,625
Nortel Networks Corporation 800 80,800
----------
230,425
COMPUTER RELATED--6.02%
Cisco Systems, Incorporated * 1,800 192,825
EMC Corporation * 1,800 196,650
Sun Microsystems, Incorporated * 2,400 185,850
----------
575,325
COMPUTER SOFTWARE--4.33%
Microsoft Corporation * 500 58,375
Novell, Incorporated * 2,100 83,869
VERITAS Software Corporation * 1,900 271,937
----------
414,181
COSMETICS & TOILETRIES--1.37%
Procter & Gamble Company 1,200 131,475
DRUGS--3.24%
Bristol-Myers Squibb Company 1,600 102,700
Pfizer, Incorporated 3,000 97,313
Schering-Plough Corporation 2,600 109,687
----------
309,700
ELECTRICAL EQUIPMENT--2.72%
General Electric Company 1,100 170,225
Solectron Corporation* 950 90,369
----------
260,594
ELECTRIC POWER--0.49%
Allegheny Energy, Incorporated 400 10,775
DTE Energy Company 700 21,963
UtiliCorp United, Incorporated 750 14,578
----------
47,316
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
EXPLORATION & DRILLING--0.64%
Global Marine Incorporated* 900 $ 14,962
Kerr-McGee Corporation 200 12,400
Tidewater, Incorporated 500 18,000
Union Pacific Resources Group,
Incorporated 1,254 15,989
----------
61,351
FINANCIAL SERVICES--1.06%
American General Corporation 300 22,762
Countrywide Credit Industries,
Incorporated 1,400 35,350
Morgan Stanley, Dean Witter, Discover
and Company 300 42,825
----------
100,937
FOOD PRODUCERS--1.28%
Bergen Brunswig Corporation
(Class A) 1,750 14,547
IBP, Incorporated 900 16,200
Interstate Bakeries Corporation 2,100 38,063
Smithfield Foods, Incorporated* 1,400 33,600
Universal Foods Corporation 1,000 20,375
----------
122,785
FOOD RETAILERS--0.83%
Albertson's, Incorporated 600 19,350
Safeway, Incorporated* 1,700 60,456
----------
79,806
HOMEBUILDING/SUPPLIES--0.18%
Centex Corporation 700 17,281
INSURANCE COMPANIES--2.11%
CIGNA Corporation 600 48,337
Citigroup, Incorporated 2,400 133,350
Conseco, Incorporated 1,100 19,663
----------
201,350
LEISURE TIME--0.40%
Brunswick Corporation 1,700 37,825
MEDIA - TV/RADIO/CABLE--0.48%
MediaOne Group, Incorporated* 600 46,087
MEDICAL PRODUCTS/SUPPLIES--0.80%
Beckman Coulter, Incorporated 400 20,350
Johnson & Johnson 600 55,875
----------
76,225
MEDICAL SERVICES--0.23%
Aetna, Incorporated 400 22,325
MANUFACTURING - DIVERSIFIED--0.37%
Tyco International LTD 900 34,988
NATURAL GAS--1.21%
Enron Corporation 2,600 115,375
OIL INTERNATIONAL--2.26%
BP Amoco p.l.c. ADR 528 31,317
Chevron Corporation 600 51,975
Royal Dutch Petroleum Company ADR 2,200 132,962
----------
216,254
</TABLE>
5
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO, CONTINUED
<TABLE>
<CAPTION>
COMMON STOCK SHARES VALUE
<S> <C> <C>
RETAIL GENERAL--0.77%
Federated Department Stores,
Incorporated* 900 $ 45,506
J. C. Penney Company, Incorporated 1,400 27,913
----------
73,419
RETAIL SPECIALTY--0.37%
Loew's Companies, Incorporated 600 35,850
SEMICONDUCTORS--1.21%
Intel Corporation 1,400 115,237
SPECIALTY PRINTING/SERVICES--0.32%
Banta Corporation 900 20,306
Toys "R" Us, Incorporated* 700 10,019
----------
30,325
STEEL--0.63%
Allegheny Technologies, Incorporated 500 11,219
LTV Corporation 4,000 16,500
USX-U. S. Steel Group 1,000 33,000
----------
60,719
TELECOM - CELLULAR--0.37%
GTE Corporation 500 35,281
TELECOM - LONG DISTANCE--1.36%
A T & T Corporation 1,000 50,750
MCI WorldCom Incorporated * 1,500 79,594
----------
130,344
TELEPHONE--1.07%
Alltel Corporation 700 57,881
US West, Incorporated New 616 44,352
----------
102,233
TOBACCO--0.18%
UST, Incorporated 700 17,631
TRUCKING & SHIPPING--0.25%
USFreightways Corporation 500 23,938
----------
TOTAL COMMON STOCK--42.74%
(Cost $2,403,890) 4,087,633
----------
<CAPTION>
FACE
BONDS AND NOTES AMOUNT VALUE
<S> <C> <C>
CORPORATE BONDS--
AUTO & TRUCK MANUFACTURERS--1.18%
DaimlerChrysler North America, 7.20%,
09/01/09 $115,000 $ 112,908
AUTO PARTS MANUFACTURERS--0.95%
TRW, Incorporated, 6.30%, 05/15/08 100,000 91,281
BUILDING SUPPLIES--0.99%
Lafarge Corporation, 6.375%, 07/15/05 100,000 94,456
GOVERNMENT AGENCIES--14.40%
Federal Farm Credit Banks, 5.25%,
05/01/02 100,000 97,093
Federal Home Loan Bank, 4.875%,
01/22/02 250,000 241,873
Federal Home Loan Bank, 5.125%,
09/15/03 200,000 189,063
Federal Home Loan Bank, 5.25%,
04/25/02 150,000 145,832
Federal Home Loan Bank, 5.495%,
03/22/04 100,000 95,013
Federal Home Loan Mortgage
Corporation, 7.83%, 04/13/05 150,000 149,667
Federal Home Loan Mortgage
Corporation, Pool # 540341, 9.00%,
09/01/19 2,580 2,684
Federal Home Loan Mortgage
Corporation, Pool # 360100, 9.00%,
04/01/20 11,431 11,896
Federal National Mortgage
Association, 7.55%, 04/22/02 50,000 50,980
Federal National Mortgage
Association, 7.70%, 04/10/07 400,000 392,881
----------
1,376,982
REAL ESTATE/REITS--0.98%
Weingarten Realty Investors, 7.35%,
07/20/09 100,000 93,859
TELEPHONE--0.99%
US West Communications, Incorporated,
6.125%, 11/15/05 100,000 94,208
U S TREASURY SECURITIES--8.05%
U S Treasury Bonds, 6.00%, 02/15/26 680,000 621,988
U S Treasury Notes, 5.875%, 02/15/04 150,000 147,516
----------
769,504
----------
TOTAL BONDS AND NOTES--27.54%
(Cost $2,652,064) 2,633,198
----------
</TABLE>
6
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO, CONTINUED
<TABLE>
<CAPTION>
FACE
COMMERCIAL PAPER AMOUNT VALUE
<S> <C> <C>
BEVERAGES--3.22%
Whitman Corporation, 6.60%, 01/03/00 $308,000 $ 307,887
CONTAINERS--3.12%
Crown Cork & Seal Company,
Incorporated, 7.20%, 01/21/00 300,000 298,799
ELECTRIC POWER--4.13%
Nevada Power Company, 7.10%, 01/04/00 395,000 394,766
FINANCIAL SERVICES--3.34%
Penn Power & Light Energy Trust,
6.80%, 01/18/00 320,000 318,969
FOOD PRODUCERS--2.65%
ConAgra, Incorporated, 6.62%,
01/05/00 254,000 253,812
FURNITURE/APPLIANCES--4.10%
Maytag Corporation, 6.37%, 01/11/00 393,000 392,302
NATURAL GAS--2.61%
Sierra Pacific Power Company, 6.55%,
01/10/00 250,000 249,588
</TABLE>
<TABLE>
RETAIL - SPECIALTY--3.26%
<CAPTION>
FACE
COMMERCIAL PAPER AMOUNT VALUE
<S> <C> <C>
Mattel, Incorporated, 6.80%, 01/18/00 $313,000 $ 311,992
UTILITY - MISCELLANEOUS--2.85%
Hawaiian Electric Industries
Incorporated, 5.65%, 01/13/00 273,000 272,486
----------
TOTAL COMMERCIAL PAPER--29.28%
(Cost $2,800,601) 2,800,601
----------
TOTAL INVESTMENTS--99.56%
(Cost $7,856,555) 9,521,432
CASH AND OTHER ASSETS, LESS LIABILITIES--0.44% 41,635
----------
NET ASSETS--100.00% $9,563,067
==========
ABBREVIATIONS
ADR--American Depository Receipt
REIT--Real Estate Investment Trust
*--Non-income producing securities
</TABLE>
See notes to financial statements.
7
<PAGE>
SCHEDULE OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
STATED MATURITY FACE
RATE(%) DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
FEDERAL AGENCIES--
Federal Agricultural Mortgage Corporation 5.66 01/13/00 $ 669,000 $ 667,734
Federal Farm Credit Bank 4.25 01/10/00 600,000 599,363
Federal Home Loan Bank 5.61 01/06/00 1,185,000 1,184,076
Federal Home Loan Bank 5.72 01/26/00 325,000 323,706
Federal Home Loan Bank 5.75 02/29/00 203,000 201,086
Federal Home Loan Mortgage Corporation 5.51 01/20/00 594,000 592,257
Federal Home Loan Mortgage Corporation 5.75 01/25/00 447,000 445,282
Federal National Mortgage Association 3.75 01/05/00 1,175,000 1,174,510
Inter-American Development Bank 5.71 01/12/00 1,427,000 1,424,504
----------
TOTAL FEDERAL AGENCIES--99.04%
(Cost $6,612,518) 6,612,518
LIABILITIES IN EXCESS OF OTHER ASSETS--0.96% 64,264
----------
NET ASSETS--100.00% $6,676,782
==========
</TABLE>
See notes to financial statements.
8
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES December 31,1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH MANAGED BALANCED MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value $20,283,657 $19,878,539 $9,521,432 $6,612,518
Cash and cash equivalents 619 672 628 70,588
Prepaid Expenses -- 261 -- 379
Receivable for:
Investment securities sold 27 13 107 --
Dividends 11,768 13,834 3,035 --
Interest 10 20 48,261 9
Expense reimbursement -- -- 1,024 1,618
----------- ----------- ---------- ----------
TOTAL ASSETS 20,296,081 19,893,339 9,574,487 6,685,112
LIABILITIES
Accrued:
Investment advisory fee 8,254 8,082 3,976 2,628
Service fee 4,127 4,041 1,988 1,314
Other liabilities 6,986 7,456 5,456 4,388
----------- ----------- ---------- ----------
TOTAL LIABILITIES 19,367 19,579 11,420 8,330
----------- ----------- ---------- ----------
NET ASSETS $20,276,714 $19,873,760 $9,563,067 $6,676,782
=========== =========== ========== ==========
SHARES OUTSTANDING 9,837,586 10,809,238 6,287,165 6,676,782
=========== =========== ========== ==========
NET ASSET VALUE PER SHARE $ 2.06 $ 1.84 $ 1.52 $ 1.00
=========== =========== ========== ==========
</TABLE>
STATEMENTS OF OPERATIONS Year Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH MANAGED BALANCED MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 171,804 $ 214,375 $ 52,892 --
Interest 166,371 204,307 273,294 $266,277
---------- ---------- --------- --------
TOTAL INVESTMENT INCOME 338,175 418,682 326,186 266,277
EXPENSES
Investment advisory fees 87,499 86,084 43,022 26,129
Service fees 43,750 43,042 21,511 13,064
Professional fees 3,467 3,332 3,785 3,911
Custody and transaction fees 20,863 22,026 20,395 14,736
Directors' fees and expenses 7,076 6,619 7,661 7,837
Registration fees 1,371 1,640 1,019 1,012
Insurance expenses 1,093 832 1,093 714
---------- ---------- --------- --------
TOTAL EXPENSES 165,119 163,575 98,486 67,403
LESS EXPENSES REIMBURSED (13,190) (3,304) (21,209) (21,723)
---------- ---------- --------- --------
NET EXPENSES 151,929 160,271 77,277 45,680
---------- ---------- --------- --------
INVESTMENT INCOME--NET 186,246 258,411 248,909 220,597
---------- ---------- --------- --------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 168,473 2,045,502 600,460 --
Change in unrealized appreciation (depreciation) of
investments 2,259,092 459,785 (121,519) --
---------- ---------- --------- --------
NET GAIN ON INVESTMENTS 2,427,565 2,505,287 478,941 --
---------- ---------- --------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,613,811 $2,763,698 $ 727,850 $220,597
========== ========== ========= ========
</TABLE>
See notes to financial statements.
9
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income--net $ 186,246 $ 132,590
Net realized gain on investments 168,473 267,352
Change in unrealized appreciation 2,259,092 1,899,902
----------- -----------
Net increase in net assets resulting from operations 2,613,811 2,299,844
DISTRIBUTIONS TO SHAREHOLDERS FROM
Investment income--net (183,316) (131,790)
Capital gains (11,639) (495,322)
----------- -----------
Total distributions to shareholders (194,955) (627,112)
CAPITAL SHARE TRANSACTIONS--Net 2,155,929 2,902,281
----------- -----------
TOTAL INCREASE 4,574,785 4,575,013
NET ASSETS
Beginning of year 15,701,929 11,126,916
----------- -----------
End of year $20,276,714 $15,701,929
=========== ===========
</TABLE>
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income--net $ 258,411 $ 179,573
Net realized gain on investments 2,045,502 80,897
Change in unrealized appreciation 459,785 1,590,285
----------- -----------
Net increase in net assets resulting from operations 2,763,698 1,850,755
DISTRIBUTIONS TO SHAREHOLDERS FROM
Investment income--net (252,141) (177,776)
Capital gains (1,672,601) (251,773)
----------- -----------
Total distributions to shareholders (1,924,742) (429,549)
CAPITAL SHARE TRANSACTIONS--Net 3,984,029 3,846,583
----------- -----------
TOTAL INCREASE 4,822,985 5,267,789
NET ASSETS
Beginning of year 15,050,775 9,782,986
----------- -----------
End of year $19,873,760 $15,050,775
=========== ===========
</TABLE>
See notes to financial statements.
10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income--net $ 248,909 $ 183,621
Net realized gain on investments 600,460 67,581
Change in unrealized appreciation (depreciation) (121,519) 758,264
---------- ----------
Net increase in net assets resulting from operations 727,850 1,009,466
DISTRIBUTIONS TO SHAREHOLDERS FROM
Investment income--net (243,837) (185,328)
Capital gains (555,948) (175,856)
---------- ----------
Total distributions to shareholders (799,785) (361,184)
CAPITAL SHARE TRANSACTIONS--Net 1,807,784 1,584,014
---------- ----------
TOTAL INCREASE 1,735,849 2,232,296
NET ASSETS
Beginning of year 7,827,218 5,594,922
---------- ----------
End of year $9,563,067 $7,827,218
========== ==========
</TABLE>
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Investment income--net $ 220,597 $ 172,159
DISTRIBUTIONS TO SHAREHOLDERS FROM
Investment income--net (220,597) (172,159)
CAPITAL SHARE TRANSACTIONS--Net 2,322,962 1,533,151
---------- ----------
TOTAL INCREASE 2,322,962 1,533,151
NET ASSETS
Beginning of year 4,353,820 2,820,669
---------- ----------
End of year $6,676,782 $4,353,820
========== ==========
</TABLE>
See notes to financial statements.
11
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period.
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $ 1.81 $ 1.60 $ 1.45 $ 1.27 $ 1.04
Investment income--net 0.02 0.02 0.03 0.02 0.02
Net realized and unrealized gain on
investments during the year 0.25 0.27 0.27 0.21 0.27
------- ------- ------- ------ ------
Total from investment operations 0.27 0.29 0.30 0.23 0.29
Less distributions from
Investment income--net (0.02) (0.02) (0.03) (0.02) (0.02)
Capital gains -- (0.06) (0.12) (0.03) (0.04)
------- ------- ------- ------ ------
Total distributions (0.02) (0.08) (0.15) (0.05) (0.06)
------- ------- ------- ------ ------
Net Asset Value, End of Year $ 2.06 $ 1.81 $ 1.60 $ 1.45 $ 1.27
======= ======= ======= ====== ======
Total return 14.99 % 18.62 % 20.72 % 17.98 % 28.50 %
======= ======= ======= ====== ======
RATIOS (IN PERCENTAGES)/SUPPLEMENTAL DATA
Net Assets, end of year (000's omitted) $20,277 $15,702 $11,127 $7,278 $4,781
Ratio of expenses with reimbursement to
average net assets 0.87 % 0.87 % 0.87 % 0.87 % 0.87 %
Ratio of expenses without reimbursement to
average net assets 0.94 % 1.01 % 1.09 % 1.25 % 1.32 %
Ratio of net investment income to average
net assets 1.06 % 1.00 % 1.69 % 1.84 % 1.99 %
Portfolio turnover rate 20.96 % 25.75 % 45.37 % 21.24 % 42.06 %
</TABLE>
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $ 1.75 $ 1.56 $ 1.37 $ 1.21 $ 1.00
Investment income--net 0.03 0.02 0.03 0.03 0.03
Net realized and unrealized gain on
investments during the year 0.26 0.22 0.28 0.19 0.24
------- ------- ------ ------ ------
Total from investment operations 0.29 0.24 0.31 0.22 0.27
Less distributions from
Investment income--net (0.03) (0.02) (0.03) (0.03) (0.03)
Capital gains (0.17) (0.03) (0.09) (0.03) (0.03)
------- ------- ------ ------ ------
Total distributions (0.20) (0.05) (0.12) (0.06) (0.06)
------- ------- ------ ------ ------
Net Asset Value, End of Year $ 1.84 $ 1.75 $ 1.56 $ 1.37 $ 1.21
======= ======= ====== ====== ======
Total return 17.09 % 15.85 % 22.41 % 17.69 % 27.19 %
======= ======= ====== ====== ======
RATIOS (IN PERCENTAGES)/SUPPLEMENTAL DATA
Net Assets, end of year (000's omitted) $19,874 $15,051 $9,783 $6,273 $4,028
Ratio of expenses with reimbursement to
average net assets 0.93 % 0.93 % 0.93 % 0.93 % 0.93 %
Ratio of expenses without reimbursement to
average net assets 0.94 % 0.99 % 1.10 % 1.14 % 1.26 %
Ratio of net investment income to average
net assets 1.49 % 1.44 % 1.91 % 2.29 % 2.57 %
Portfolio turnover rate 16.42 % 24.83 % 35.08 % 20.79 % 30.87 %
</TABLE>
See notes to financial statements.
12
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the period.
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $ 1.54 $ 1.39 $ 1.27 $ 1.18 $ 0.99
Investment income--net 0.04 0.04 0.04 0.04 0.04
Net realized and unrealized gain on
investments during the year 0.08 0.19 0.20 0.10 0.19
------ ------ ------ ------ ------
Total from investment operations 0.12 0.23 0.24 0.14 0.23
Less distributions from
Investment income--net (0.04) (0.04) (0.05) (0.04) (0.04)
Capital gains (0.10) (0.04) (0.07) (0.01) --
------ ------ ------ ------ ------
Total
distributions (0.14) (0.08) (0.12) (0.05) (0.04)
------ ------ ------ ------ ------
Net Asset Value, End of Year $ 1.52 $ 1.54 $ 1.39 $ 1.27 $ 1.18
====== ====== ====== ====== ======
Total return 8.00 % 16.58 % 18.80 % 12.23 % 22.80 %
====== ====== ====== ====== ======
RATIOS (IN PERCENTAGES)/SUPPLEMENTAL DATA
Net Assets, end of year (000's omitted) $9,563 $7,827 $5,595 $4,281 $3,399
Ratio of expenses with reimbursement to
average net assets 0.90 % 0.90 % 0.90 % 0.90 % 0.90 %
Ratio of expenses without reimbursement to
average net assets 1.14 % 1.24 % 1.30 % 1.48 % 1.37 %
Ratio of net investment income to average
net assets 2.89 % 2.79 % 3.43 % 3.25 % 3.19 %
Portfolio turnover rate 31.53 % 14.14 % 23.02 % 16.71 % 15.97 %
</TABLE>
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Investment income--net 0.04 0.05 0.05 0.08 0.05
------ ------ ------ ------ ------
Total from investment operations 0.04 0.05 0.05 0.08 0.05
Less distributions from
Investment income--net (0.04) (0.05) (0.05) (0.08) (0.05)
------ ------ ------ ------ ------
Total
distributions (0.04) (0.05) (0.05) (0.08) (0.05)
------ ------ ------ ------ ------
Net Asset Value, End of Year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return 4.26% 4.65% 4.78% 4.61% 5.11%
====== ====== ====== ====== ======
RATIOS (IN PERCENTAGES)/SUPPLEMENTAL DATA
Net Assets, end of year (000's omitted) $6,677 $4,354 $2,821 $2,532 $2,398
Ratio of expenses with reimbursement to
average net assets 0.87 % 0.87 % 0.87 % 0.87 % 0.87 %
Ratio of expenses without reimbursement to
average net assets 1.28 % 1.37 % 1.23 % 1.22 % 1.21 %
Ratio of net investment income to average
net assets 4.20 % 4.55 % 4.62 % 4.51 % 5.03 %
</TABLE>
See notes to financial statements.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
AMERICAN NATIONAL INVESTMENT ACCOUNTS, INC.
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
The American National Investment Accounts, Inc. (the "Fund") is a diversified
open-end management investment company registered as a series fund under the
Investment Company Act of 1940, as amended. The Fund is comprised of the Growth,
Managed, Balanced and Money Market Portfolios.
Shares of the Fund, other than the initial capitalization, will be sold only to
separate accounts of American National Insurance Company ("American National").
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting year. Actual results could differ from those estimates.
INVESTMENT VALUATIONS:
GROWTH, MANAGED AND BALANCED PORTFOLIOS
Investments listed on national exchanges are valued at the last sales price of
the day, or if there were no sales, then at the last bid price. Debt obligations
that are issued or guaranteed by the U.S. Government, its agencies, authorities,
and instrumentalities are valued on the basis of prices provided by an
independent pricing service. Prices provided by the pricing service may be
determined without exclusive reliance on quoted prices and may reflect
appropriate factors such as yield, type of issue, coupon rate, maturity and
seasoning differential. Securities for which market quotations are not readily
available are valued as determined by the Board of Directors. Commercial paper
is stated at amortized cost, which is equivalent to fair value.
MONEY MARKET PORTFOLIO
Investments are valued at amortized cost (premiums and discounts are amortized
on a straight-line basis), which has been determined by the Fund's Board of
Directors to closely approximate the fair value of such securities. The Fund
intends to maintain a continuous net asset value per share of $1.00, rounded to
the nearest cent.
INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
Investment transactions are accounted for on the trade date (date order to buy
or sell is executed). Dividend income is recognized on the ex-dividend date, and
interest income is recognized on an accrual basis. Realized gains and losses
from security transactions are reported on the basis of identified cost for
financial reporting and federal income tax purposes.
FEDERAL INCOME TAXES:
For federal income tax purposes, each portfolio is treated as a separate entity.
The Fund intends to comply with requirements of the Internal Revenue Code
relating to regulated investment companies and intend to distribute
substantially all of its taxable income to its shareholders. Therefore, no
provision for federal income taxes is recorded in the accompanying financial
statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
AMERICAN NATIONAL INVESTMENT ACCOUNTS, INC.
CAPITAL STOCK TRANSACTIONS AND DISTRIBUTIONS TO SHAREHOLDERS:
Fund shares are sold in a continuous public offering at net asset value. The
Fund repurchases its shares at net asset value. Dividends and other
distributions are recorded by the Fund on the ex-dividend date and may be
reinvested at net asset value. For the Money Market Portfolio, distributions are
computed daily and distributed monthly.
EXPENSES:
Operating expenses directly attributable to a portfolio are charged to that
portfolio's operations. Expenses of the Fund, which are not directly
attributable to the operations of any portfolio, are prorated among all
portfolios of the Fund based on the relative net assets of each portfolio.
NOTE 2--INVESTMENT ADVISORY AND SERVICE FEES AND OTHER TRANSACTIONS WITH
AFFILIATES
The Fund has entered into an investment advisory agreement and an administrative
service agreement with Securities Management and Research, Inc. ("SM&R"). SM&R
is a wholly-owned subsidiary of American National.
The investment advisory agreement provides SM&R with a monthly advisory fee
based on an annualized rate of 1/2 of 1% of the Fund's average daily net assets.
For its fee, SM&R will provide investment advice and, in general, will conduct
the management and investments of the Fund.
The administrative service agreement provides SM&R with a monthly service fee
based on an annualized rate of 1/4 of 1% of the Fund's average daily net assets.
For its fee, SM&R will provide certain administrative services for the Fund.
In addition to the investment advisory fee and the administrative fee, the Fund
is responsible for paying most other operating expenses including outside
director's fees and expenses, safekeeping fees, legal fees, auditing services,
insurance, interest and miscellaneous expenses.
All offering and organization costs were paid by American National. Effective
May 1, 1994, SM&R has agreed to reimburse the Fund for expenses of any kind
(exclusive of interest, commissions and other expenses incidental to portfolio
transactions) which exceed the following percentages of each portfolio's average
daily net assets:
<TABLE>
<S> <C>
Growth 0.87 %
Managed 0.93 %
Balanced 0.90 %
Money Market 0.87 %
</TABLE>
Prior to May 1, 1994, the reimbursement percentage was 1.50% of each portfolio's
average daily net assets.
As of December 31, 1999, SM&R and American National had the following ownership
in the Portfolios:
<TABLE>
<CAPTION>
AMERICAN NATIONAL AMERICAN NATIONAL
SM&R CORPORATE ACCOUNTS SEPARATE ACCOUNTS
---------------------------- ----------------------------- -----------------------------
PERCENT OF SHARES PERCENT OF SHARES PERCENT OF SHARES
SHARES OUTSTANDING SHARES OUTSTANDING SHARES OUTSTANDING
<S> <C> <C> <C> <C> <C> <C>
Growth 382,740 3.89% 2,688,267 27.33% 6,766,579 68.78%
Managed 414,793 3.84% 2,909,220 26.91% 7,485,224 69.25%
Balanced 401,582 6.39% 2,813,852 44.75% 3,071,731 48.86%
Money Market 351,103 5.26% 2,458,969 36.83% 3,866,710 57.91%
</TABLE>
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
AMERICAN NATIONAL INVESTMENT ACCOUNTS, INC.
NOTE 3--COST, PURCHASES AND SALES OF INVESTMENTS
Investments have the same cost for tax and financial statement purposes.
Aggregate purchases and sales of investments, other than commercial paper, were
as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
Growth $3,040,247 $4,009,343
Managed $2,220,361 $5,952,244
Balanced $2,055,290 $2,093,393
</TABLE>
Gross unrealized appreciation and depreciation as of December 31, 1999 were as
follows:
<TABLE>
<CAPTION>
APPRECIATION DEPRECIATION
<S> <C> <C>
Growth $7,152,005 $858,263
Managed $4,904,347 $871,214
Balanced $2,015,908 $351,031
</TABLE>
NOTE 4--CAPITAL STOCK
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sale of capital shares 1,702,006 $ 3,211,140 1,744,719 $ 2,975,649
Investment income dividends reinvested 94,008 183,316 75,309 131,790
Distributions from net realized gains reinvested 5,969 11,639 315,491 495,322
----------- ------------ ----------- ------------
Subtotals 1,801,983 3,406,095 2,135,519 3,602,761
Redemptions of capital shares (647,985) (1,250,166) (413,303) (700,480)
----------- ------------ ----------- ------------
Net increase in capital shares outstanding 1,153,998 $ 2,155,929 1,722,216 $ 2,902,281
============ ============
Shares outstanding at beginning of year 8,683,588 6,961,372
----------- -----------
Shares outstanding at end of year 9,837,586 8,683,588
=========== ===========
The components of net assets at December 31, 1999, are as
follows:
Capital Stock--9,837,586 shares of $.01 par value
outstanding (115,000,000 authorized) (par and additional
paid-in capital) $ 13,893,458
Undistributed net investment income 2,930
Accumulated net realized gain on investments 86,584
Net unrealized appreciation of investments 6,293,742
------------
Net Assets $ 20,276,714
============
</TABLE>
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
AMERICAN NATIONAL INVESTMENT ACCOUNTS, INC.
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sale of capital shares 1,824,138 $ 3,317,155 2,507,388 $ 4,170,741
Investment income dividends reinvested 143,262 252,141 103,963 177,776
Distributions from net realized gains reinvested 950,342 1,672,601 162,434 251,773
----------- ------------ ----------- ------------
Subtotals 2,917,742 5,241,897 2,773,785 4,600,290
Redemptions of capital shares (686,142) (1,257,868) (461,532) (753,707)
----------- ------------ ----------- ------------
Net increase in capital shares outstanding 2,231,600 $ 3,984,029 2,312,253 $ 3,846,583
============ ============
Shares outstanding at beginning of year 8,577,638 6,265,385
----------- -----------
Shares outstanding at end of year 10,809,238 8,577,638
=========== ===========
The components of net assets at December 31, 1999, are as
follows:
Capital Stock--10,809,238 shares of $.01 par value
outstanding (120,000,000 authorized) (par and additional
paid-in capital) $ 15,484,979
Undistributed net investment income 6,270
Accumulated net realized gain on investments 349,378
Net unrealized appreciation of investments 4,033,133
------------
Net Assets $ 19,873,760
============
</TABLE>
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sale of capital shares 1,056,670 $ 1,639,801 1,000,879 $ 1,484,090
Investment income dividends reinvested 164,755 243,837 123,552 185,328
Distributions from net realized gains reinvested 375,640 555,948 123,843 175,856
----------- ------------ ----------- ------------
Subtotals 1,597,065 2,439,586 1,248,274 1,845,274
Redemptions of capital shares (404,768) (631,802) (177,843) (261,260)
----------- ------------ ----------- ------------
Net increase in capital shares outstanding 1,192,297 $ 1,807,784 1,070,431 $ 1,584,014
============ ============
Shares outstanding at beginning of year 5,094,868 4,024,437
----------- -----------
Shares outstanding at end of year 6,287,165 5,094,868
=========== ===========
The components of net assets at December 31, 1999, are as
follows:
Capital Stock--6,287,165 shares of $.01 par value
outstanding (115,000,000 authorized) (par and additional
paid-in capital) $ 7,863,085
Undistributed net investment income 5,072
Accumulated net realized gain on investments 30,033
Net unrealized appreciation of investments 1,664,877
------------
Net Assets $ 9,563,067
============
</TABLE>
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
AMERICAN NATIONAL INVESTMENT ACCOUNTS, INC.
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sale of capital shares 21,010,546 $ 21,010,546 14,329,299 $ 14,329,299
Investment income dividends reinvested 221,637 221,637 172,322 172,322
----------- ------------ ----------- ------------
Subtotals 21,232,183 21,232,183 14,501,621 14,501,621
Redemptions of capital shares (18,909,221) (18,909,221) (12,968,470) (12,968,470)
----------- ------------ ----------- ------------
Net increase in capital shares outstanding 2,322,962 $ 2,322,962 1,533,151 $ 1,533,151
============ ============
Shares outstanding at beginning of year 4,353,820 2,820,669
----------- -----------
Shares outstanding at end of year 6,676,782 4,353,820
=========== ===========
The components of net assets at December 31, 1999, are as
follows:
Capital Stock--6,676,782 shares of $.01 par value
outstanding (1,050,000,000 authorized) (par and additional
paid-in capital) $ 6,676,782
------------
Net Assets $ 6,676,782
============
</TABLE>
18
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
American National Investment Accounts, Inc.
We have audited the accompanying statements of assets and liabilities of
American National Investment Accounts, Inc. (comprised of Growth, Managed,
Balanced and Money Market portfolios), including the schedule of investments as
of December 31, 1999, the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years then
ended, and the financial highlights for each of the three years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for each of the two years in the period ended
December 31, 1996 were audited by other auditors whose report dated February 7,
1997, issued an unqualified opinion.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
American National Investment Accounts, Inc. as of December 31, 1999, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years then ended, and the financial highlights for each of the
three years then ended, in conformity with generally accepted accounting
principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 28, 2000
19
