<PAGE> 1
As filed with the Securities and Exchange Commission on December 2, 1997
Securities Act File No. 33-57732
Investment Company Act File No. 811-7462
==============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / /
---
POST-EFFECTIVE AMENDMENT NO. 10 / X /
---- ---
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 / /
---
AMENDMENT NO. 11 / X /
The Sierra Variable Trust
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
9301 Corbin Avenue
Northridge, CA 91324
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (818) 725-0200
Keith B. Pipes
The Sierra Variable Trust
9301 Corbin Avenue
Northridge, California 91324
(Name and Address of Agent for Service)
Copies to:
Richard W. Grant, Esq. W. John McGuire, Esq.
Morgan, Lewis & Bockius LLP Morgan, Lewis & Bockius LLP
2000 One Logan Square 1800 M. Street, N.W.
Philadelphia, Pennsylvania 19103 Washington, DC 20036
It is proposed that this filing will become effective (check
appropriate box):
[ ] immediately upon filing pursuant to paragraph (b), or
[ ] on [date] pursuant to paragraph (b), or
[ ] 60 days after filing pursuant to paragraph (a), or
[ ] 75 days after filing pursuant to paragraph (a), or
[X] on February 20, 1998 pursuant to paragraph (a) of Rule 485.
<PAGE> 2
THE SIERRA VARIABLE TRUST
FORM N-1A
CROSS REFERENCE SHEET
---------------------
PART A
Location in Prospectus for the Global Money Fund, Short Term High Quality Bond
Fund, Short Term Global Government Fund, U.S. Government Fund, Corporate Income
Fund, Growth and Income Fund, Growth Fund, Emerging Growth Fund and
International Growth Fund of The Sierra Variable Trust (the "Trust").
<TABLE>
<CAPTION>
Item No. Prospectus Heading
- -------- ------------------
<S> <C> <C>
1. Cover Page . . . . . . . . . Cover Page
2. Synopsis . . . . . . . . . . Highlights
3. Condensed Financial
Information . . . . . . . . Financial Highlights
4. General Description of
Registrant . . . . . . . . Management of the Trust; Investment Policies;
Certain Investment Guidelines; Special
Considerations; General Information and History
5. Management of the Fund . . . Management of the Trust-Investment Advisor, --
Sub-Advisors, -- Distributor and -Administration;
Investment Guidelines; Special Considerations
5A. Management's Discussion of Not Applicable
Fund Performance. . . . .
6. Capital Stock and Other
Securities . . . . . . . . Dividends, Distributions and Taxes; General
Information and History --The Trust
7. Purchase of Securities
Being Offered . . . . . . . General Information and History -- Purchase and
Redemption, and -- Net Asset Value; Management of
the Trust -- Distributor
8. Redemption or Repurchase . . General Information and History -- Purchase and
Redemption
9. Pending Legal Proceedings. . Not Applicable
</TABLE>
<PAGE> 3
Location in Prospectus for the Capital Growth Portfolio, Growth Portfolio,
Balanced Portfolio, Value Portfolio, Income Portfolio and Global Money Fund of
the Trust.
<TABLE>
<CAPTION>
Item No. Prospectus Heading
- -------- ------------------
<S> <C> <C>
1. Cover Page . . . . . . . . . Cover Page
2. Synopsis . . . . . . . . . . Highlights
3. Condensed Financial
Information . . . . . . . . Financial Highlights
4. General Description of
Registrant . . . . . . . . Management of the Trust; Investment Policies;
Certain Investment Guidelines; Special
Considerations; General Information and History
5. Management of the Fund . . . Management of the Trust-Investment Advisor, --
Sub-Advisors, -- Distributor and -Administration;
Investment Guidelines; Special Considerations
5A. Management's Discussion of Not Applicable
Fund Performance. . . . .
6. Capital Stock and Other
Securities . . . . . . . . Dividends, Distributions and Taxes; General
Information and History --The Trust
7. Purchase of Securities
Being Offered . . . . . . . General Information and History -- Purchase and
Redemption, and -- Net Asset Value; Management of
the Trust -- Distributor
8. Redemption or Repurchase . . General Information and History -- Purchase and
Redemption
9. Pending Legal Proceedings. . Not Applicable
</TABLE>
<PAGE> 4
PART B
<TABLE>
<CAPTION>
Heading in Statement of
Item No. Additional Information
- -------- ----------------------
<S> <C> <C>
10. Cover Page . . . . . . . . . Cover Page
11. Table of Contents . . . . . Contents
12. General Information and
History . . . . . . . . . . General Information and History; Management of the
Trust; see Prospectus -- "General Information and
History"
13. Investment Objectives and
Policies . . . . . . . . . Investment Objectives and Policies of the Funds and
Portfolios
14. Management of the Fund . . . Management of the Trust
15. Control Persons and Principal
Holders of Securities . . . Management of the Trust; see Prospectus -- "General
Information and History"
16. Investment Advisory and
Other Services . . . . . . Management of the Trust; see Prospectus --
"Management of the Trust-- Administration"
17. Brokerage Allocation and
Other Practices . . . . . . Investment Objectives and Policies of the Funds and
Portfolios
18. Capital Stock and Other
Securities . . . . . . . . Management of the Trust; see Prospectus --
"Dividends, Distributions and Taxes" and "General
Information and History"
19. Purchase, Redemption and
Pricing of Securities
Being Offered . . . . . . . Purchase and Pricing of Shares; Net Asset Value
20. Tax Status . . . . . . . . . Taxes; see Prospectus -- "Dividends, Distributions
and Taxes"
21. Underwriters . . . . . . . . Purchase and Pricing of Shares; see Prospectus --
"Management of the Trust -- Distributor"
22. Calculation of Performance
Data . . . . . . . . . . . Performance; see Prospectus -- "Performance"
23. Financial Statements . . . . Financial Statements
</TABLE>
PART C
Information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C to this Registration Statement.
<PAGE> 5
The Prospectus for the Capital Growth Portfolio, Growth Portfolio, Balanced
Portfolio, Value Portfolio, Income Portfolio and Global Money Fund of The Sierra
Variable Trust is incorporated by reference to Post-Effective Amendment No. 8 to
the Registrant's Registration Statement in Form N-1A (File No. 033-57732), filed
with the Securities and Exchange Commission on March 25, 1997 (Accession Number
0000950150-97-000398).
<PAGE> 6
SUPPLEMENT DATED FEBRUARY 20, 1998
TO PROSPECTUS DATED MAY 1, 1997
OF
THE SIERRA VARIABLE TRUST
9301 CORBIN AVENUE, SUITE 333
NORTHRIDGE, CALIFORNIA 91324
The Prospectus, dated May 1, 1997, relating to the CAPITAL GROWTH PORTFOLIO,
GROWTH PORTFOLIO, BALANCED PORTFOLIO, VALUE PORTFOLIO, INCOME PORTFOLIO AND
GLOBAL MONEY FUND of The Sierra Variable Trust (the "Trust") is hereby amended
and supplemented as follows.
By deleting the section labeled "FINANCIAL HIGHLIGHTS OF THE GLOBAL MONEY FUND"
on page 7 and replacing it with the following:
FINANCIAL HIGHLIGHTS OF THE PORTFOLIOS
Set forth below are the unaudited financial highlights for the period from June
3, 1997 (commencement of operations) through October 31, 1997 for the Capital
Growth, Growth and Balanced Portfolios. The Financial Statements and Notes to
Financial Statements for the period ended October 31, 1997 (unaudited) are
included in the SAI, which can be obtained at no charge by calling the Trust at
800-222-5852 or writing to the Trust at the address shown above.
CAPITAL GROWTH PORTFOLIO
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/97*
(UNAUDITED)
-----------
<S> <C>
Net asset value, beginning of period........................................................................... $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.......................................................................................... 0.02+++
Net realized and unrealized gain on investments................................................................ 0.59#
-------
Total from investment operations............................................................................... 0.61
LESS DISTRIBUTIONS:
Dividends from net investment income........................................................................... -
Distributions from net realized gains.......................................................................... -
-------
Total distributions............................................................................................ -
-------
Net asset value, end of period................................................................................. $ 10.61
=======
TOTAL RETURN+ 6.10%
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................................................................... $ 525
Ratio of operating expenses to average net assets++............................................................ 0.34%**
Ratio of net investment income to average net assets........................................................... 0.50%**
Portfolio turnover rate........................................................................................ 17%
</TABLE>
<PAGE> 7
<TABLE>
<S> <C>
Ratio of operating expenses to average net assets without credits allowed by the custodian++................... 0.47%**
Ratio of operating expenses to average net assets without fee waivers and credits allowed by the custodian++... 23.30%**
Net investment loss per share without fee waivers and credits allowed by the custodian......................... $ (0.75)+++
</TABLE>
- ----------
* The Portfolio commenced operations on June 3, 1997.
** Annualized.
+ Total return represents aggregate total return for the period
indicated. The total return would have been lower if certain fees had
not been waived and expenses absorbed by the administrator or without
credits allowed by the custodian.
++ The Portfolio will indirectly bear its prorated share of expenses of
the Underlying Funds.
+++ Per share numbers have been calculated using the average shares method.
# The amount shown may not accord with the change in the aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Portfolio shares.
GROWTH PORTFOLIO
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/97*
(UNAUDITED)
-----------
<S> <C>
Net asset value, beginning of period........................................................................... $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.......................................................................................... 0.04+++
Net realized and unrealized gain on investments................................................................ 0.38#
-------
Total from investment operations............................................................................... 0.42
LESS DISTRIBUTIONS:
Dividends from net investment income........................................................................... -
Distributions from net realized gains.......................................................................... -
-------
Total distributions............................................................................................ -
-------
Net asset value, end of period................................................................................. $ 10.42
=======
TOTAL RETURN+ 4.20%
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................................................................... $ 1,086
Ratio of operating expenses to average net assets++............................................................ 0.35%**
Ratio of net investment income to average net assets........................................................... 1.21%**
Portfolio turnover rate........................................................................................ 0%
Ratio of operating expenses to average net assets without credits allowed by the custodian++................... 0.44%**
Ratio of operating expenses to average net assets without fee waivers and credits allowed by the custodian++ 8.52%**
Net investment loss per share without fee waivers and credits allowed by the custodian......................... $ (0.25)+++
</TABLE>
- ----------
* The Portfolio commenced operations on June 3, 1997.
** Annualized.
+ Total return represents aggregate total return for the period
indicated. The total return would have been lower if certain fees had
not been waived and expenses absorbed by the administrator or without
credits allowed by the custodian.
++ The Portfolio will indirectly bear its prorated share of expenses of
the Underlying Funds.
+++ Per share numbers have been calculated using the average shares method.
# The amount shown may not accord with the change in the aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Portfolio shares.
<PAGE> 8
BALANCED PORTFOLIO
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/97*
(UNAUDITED)
-----------
<S> <C>
Net asset value, beginning of period........................................................................... $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.......................................................................................... 0.08+++
Net realized and unrealized gain on investments................................................................ 0.31#
-------
Total from investment operations............................................................................... 0.39
LESS DISTRIBUTIONS:
Dividends from net investment income........................................................................... -
Distributions from net realized gains.......................................................................... -
-------
Total distributions............................................................................................ -
-------
Net asset value, end of period................................................................................. $ 10.39
=======
TOTAL RETURN+ 3.90%
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................................................................... $ 2,068
Ratio of operating expenses to average net assets++............................................................ 0.35%**
Ratio of net investment income to average net assets........................................................... 2.24%**
Portfolio turnover rate........................................................................................ 6%
Ratio of operating expenses to average net assets without credits allowed by the custodian++................... 0.39%**
Ratio of operating expenses to average net assets without fee waivers and credits allowed by the custodian++ 4.48%**
Net investment loss per share without fee waivers and credits allowed by the custodian......................... $ (0.06)+++
</TABLE>
- ----------
* The Portfolio commenced operations on June 3, 1997.
** Annualized.
+ Total return represents aggregate total return for the period
indicated. The total return would have been lower if certain fees had
not been waived and expenses absorbed by the administrator or without
credits allowed by the custodian.
++ The Portfolio will indirectly bear its prorated share of expenses of
the Underlying Funds.
+++ Per share numbers have been calculated using the average shares method.
# The amount shown may not accord with the change in the aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Portfolio shares.
FINANCIAL HIGHLIGHTS OF THE GLOBAL MONEY FUND
The financial highlights of the Global Money Fund set forth certain information
concerning the investment results of the Fund for the periods presented. The
financial highlights have been audited, except where noted, by Price Waterhouse
LLP, the Trust's independent accountants, whose report is contained in the
Trust's Semi-Annual Report to Shareholders which is included in the SAI. The SAI
and Semi-Annual Report can be obtained at no charge by calling AGL at 800-
247-6584 or writing to them at the address shown on the first page of this
Prospectus.
<PAGE> 9
GLOBAL MONEY FUND FOR A
FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
6/30/97 ENDED ENDED ENDED ENDED
(UNAUDITED) 12/31/96 12/31/95 12/31/94 12/31/93*
----------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................................... 0.024 0.049 0.053 0.037 0.016
------- ------- ------- ------- ------
Total from investment operations............................ 0.024 0.049 0.053 0.037 0.016
LESS DISTRIBUTIONS:
Dividends from net investment income........................ (0.024) (0.049) (0.053) (0.037) (0.016)
Distributions from net realized capital gains............... -- (0.000)# -- -- --
------- ------- ------- ------- ------
Total distributions......................................... (0.024) (0.049) (0.053) (0.037) (0.016)
------- ------- ------- ------- ------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======
TOTAL RETURN+............................................... 2.48% 4.97% 5.46% 3.69% 1.59%
======= ======= ======= ======= ======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................ $32,629 $23,266 $20,373 $6,159 $1,488
Ratio of operating expenses to average net assets........... 0.65%** 0.58% 0.50% 0.49% 0.39%**
Ratio of net investment income to average net assets........ 4.93%** 4.86% 5.30% 3.84% 2.54%**
Ratio of operating expenses to average net assets without
credits allowed by the custodian....................... 0.65%**(a) 0.58%(a) 0.51%(a) N/A N/A
Ratio of operating expenses to average net assets
without fee waivers, expenses absorbed and/or credits
allowed by the custodian............................... 0.86%**(a) .88%(a) 1.01%(a) 1.25% 6.42%**
Net investment income/(loss) per share without fee waivers
and/or expenses absorbed and/or credits allowed by the
custodian.............................................. $0.023(a) $0.046(a) $0.048(a) $0.030 $(0.022)
</TABLE>
- ----------
* The Fund commenced operations on May 10, 1993.
** Annualized.
+ Total return represents aggregate total return for the periods
indicated. The total return would have been lower if certain fees had
not been waived by the investment advisor and administrator and if
certain expenses had not been absorbed by the investment advisor or
without credits allowed by the custodian.
(a) The ratio and per share number include custodian fees without credits
allowed by the custodian as required by amended disclosure requirements
effective September 1, 1995.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 10
The Prospectus for the Global Money Fund, Short Term High Quality Bond Fund,
Short Term Global Government Fund, U.S. Government Fund, Corporate Income Fund,
Growth and Income Fund, Growth Fund, Emerging Growth Fund and International
Growth Fund of The Sierra Variable Trust is incorporated by reference to
Post-Effective Amendment No. 9 to the Registrant's Registration Statement in
Form N-1A (File No. 033-57732), filed with the Securities and Exchange
Commission on April 30, 1997 (Accession Number 0000950150-97-000651).
<PAGE> 11
The Statement of Additional Information dated May 1, 1997 for the Global Money
Fund, Short Term High Quality Bond Fund, Short Term Global Government Fund, U.S.
Government Fund, Corporate Income Fund, Growth and Income Fund, Growth Fund,
Emerging Growth Fund, International Growth Fund, Capital Growth Portfolio,
Growth Portfolio, Balanced Portfolio, Value Portfolio, and Income Portfolio of
The Sierra Variable Trust is incorporated by reference to Post-Effective
Amendment No. 9 to the Registrant's Registration Statement in Form N-1A (File
No. 033-57732), filed with the Securities and Exchange Commission on April 30,
1997 (Accession Number 0000950150-97-000651).
<PAGE> 12
SUPPLEMENT DATED FEBRUARY 20, 1998
TO STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1997
OF
THE SIERRA VARIABLE TRUST
9301 CORBIN AVENUE, SUITE 333
NORTHRIDGE, CALIFORNIA 91324
The Statement of Additional Information dated May 1, 1997 for The Sierra
Variable Trust (the "Trust") is hereby amended and supplemented by the following
unaudited financial statements for the Capital Growth Portfolio, Growth
Portfolio and Balanced Portfolio of the Trust for the period ended October 31,
1997. Unaudited financial statements, as of June 30, 1997, for the Global Money
Fund, Short Term High Quality Bond Fund, Short Term Global Government Fund, U.S.
Government Fund, Corporate Income Fund, Growth and Income Fund, Growth Fund,
Emerging Growth Fund and International Growth Fund are incorporated herein by
reference to the Trust's Semi-Annual Report for the six months ended June 30,
1997.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 13
PORTFOLIO OF INVESTMENTS
CAPITAL GROWTH PORTFOLIO
OCTOBER 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(NOTE 2)
------------
SHARES
- ------------------------
<S> <C> <C>
INVESTMENT COMPANY SECURITIES - 102.3%
3,543 Emerging Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . $ 54,137
27,660 Global Money Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,660
9,832 Growth and Income Fund . . . . . . . . . . . . . . . . . . . . . . . . 160,951
13,453 Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,659
4,171 International Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 52,721
13,548 Short Term High Quality Bond Fund . . . . . . . . . . . . . . . . . . . 33,192
-----------
TOTAL INVESTMENTS (COST $549,929*).......................................... 102.3% 537,320
OTHER ASSETS AND LIABILITIES (NET).......................................... (2.3) (12,144)
--------- -----------
NET ASSETS.................................................................. 100.0% $ 525,176
========= ===========
</TABLE>
- ----------
*Aggregate cost for federal tax purposes.
<PAGE> 14
GROWTH PORTFOLIO
OCTOBER 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(NOTE 2)
------------
SHARES
- ------------------------
<S> <C> <C>
INVESTMENT COMPANY SECURITIES - 97.3%
110,016 Global Money Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 110,016
19,280 Growth and Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . 315,607
17,104 Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,279
15,658 International Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . 197,921
16,684 U.S. Government Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 168,013
-----------
TOTAL INVESTMENTS (COST $1,088,410*)........................................ 97.3% 1,056,836
OTHER ASSETS AND LIABILITIES (NET).......................................... 2.7 28,803
--------- -----------
NET ASSETS.................................................................. 100.0% $ 1,085,639
========= ===========
</TABLE>
*Aggregate cost for federal tax purposes.
<PAGE> 15
BALANCED PORTFOLIO
OCTOBER 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(NOTE 2)
------------
SHARES
- ------------------------
<S> <C> <C>
INVESTMENT COMPANY SECURITIES - 99.9%
422,666 Global Money Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 422,666
36,139 Growth and Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 591,590
20,982 Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325,425
23,724 International Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . 299,866
42,401 U.S. Government Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 426,982
----------
TOTAL INVESTMENTS (COST $2,100,056*)........................................ 99.9% 2,066,529
OTHER ASSETS AND LIABILITIES (NET).......................................... 0.1 1,510
--------- ----------
NET ASSETS.................................................................. 100.0% $2,068,039
========= ==========
</TABLE>
*Aggregate cost for federal tax purposes.
See Notes to Financial Statements
<PAGE> 16
STATEMENTS OF ASSETS AND LIABILITIES
THE SIERRA VARIABLE TRUST
OCTOBER 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL
GROWTH GROWTH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Note 2)
See portfolios of investments (a)......................... $ 537,320 $ 1,056,836 $ 2,066,529
Cash........................................................ 1,000 1,002 32,364
Dividends and/or interest receivable........................ 90 469 1,645
Receivable for fund shares sold............................. - 40,708 -
Receivable for investment securities sold................... - - 10,602
Unamortized organization costs and/or offering costs (Note 7) 37,767 37,767 37,767
Receivable from administrator............................... 4,289 4,288 5,172
--------- ----------- -----------
Total assets................................................ 580,466 1,141,070 2,154,079
--------- ----------- -----------
LIABILITIES:
Payable for investment securities purchased................. - - 30,364
Investment advisory fee payable (Note 3).................... 34 88 170
Transfer agent fees payable (Note 3)........................ 370 370 370
Custodian fees payable (Note 3)............................. 165 112 103
Accrued trustees' fees and expenses (Note 4)................ 17 43 85
Accrued legal and audit fees................................ 9,746 9,759 9,778
Organization and offering cost payable...................... 41,200 41,200 41,200
Accrued expenses and other payables......................... 3,758 3,859 3,970
--------- ----------- -----------
Total liabilities........................................... 55,290 55,431 86,040
--------- ----------- -----------
NET ASSETS.................................................. $ 525,176 $ 1,085,639 $ 2,068,039
========= =========== ===========
NET ASSETS CONSIST OF:
Undistributed net investment income......................... $ 430 $ 2,916 $ 11,163
Accumulated net realized gain on investments................ 3,198 2,627 13,343
Net unrealized depreciation of investments.................. (12,609) (31,574) (33,527)
Paid-in capital............................................. 534,157 1,111,670 2,077,060
--------- ----------- -----------
Total net assets............................................ $ 525,176 $ 1,085,639 $ 2,068,039
========= =========== ===========
NET ASSET VALUE, offering price and redemption price
per share of beneficial interest outstanding.............. $ 10.61 $ 10.42 $ 10.39
========= =========== ===========
Number of fund shares outstanding........................... 49,475 104,192 199,095
========= =========== ===========
- ------------------------------------------------------------
(a) INVESTMENTS, AT COST (NOTE 2)........................... $ 549,929 $ 1,088,410 $ 2,100,056
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 17
STATEMENTS OF OPERATIONS
THE SIERRA VARIABLE TRUST
FOR THE PERIOD ENDED OCTOBER 31, 1997* (UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL
GROWTH GROWTH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends..................................................... $ 722 $ 3,733 $ 12,721
Interest...................................................... - 14 164
-------- -------- --------
Total Investment Income.............................. 722 3,747 12,885
-------- -------- --------
EXPENSES:
Investment advisory fee (Note 3).............................. 85 241 498
Administration fee (Note 3)................................... 128 361 747
Trustees' fees and expenses (Note 4).......................... 18 47 100
Legal and audit fees.......................................... 9,863 10,005 10,994
Transfer agent fees (Note 3).................................. 2,047 2,047 2,047
Custodian fees (Note 3)....................................... 505 505 510
Amortization of organization costs (Note 7)................... 3,433 3,433 3,433
Other......................................................... 3,758 3,859 3,970
Fees waived and expenses absorbed by administrator (Note 3)... (19,434) (19,456) (20,379)
-------- -------- --------
Subtotal............................................. 403 1,042 1,920
Credits allowed by the custodian (Note 3)..................... (111) (211) (198)
-------- -------- --------
Net expenses......................................... 292 831 1,722
-------- -------- --------
NET INVESTMENT INCOME......................................... 430 2,916 11,163
-------- -------- --------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTES 2 AND 5):
Net realized gain/(loss) on investments during the period..... (104) - 273
Capital gain distributions received........................... 3,302 2,627 13,070
Net change in unrealized depreciation of investments during the
period........................................................ (12,609) (31,574) (33,527)
-------- -------- --------
Net Realized and Unrealized Loss on Investments.............. (9,411) (28,947) (20,184)
-------- -------- --------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS................................... $ (8,981) $(26,031) $ (9,021)
======== ======== ========
</TABLE>
- ----------
* The Capital Growth, Growth and Balanced Portfolios commenced operations on
June 3, 1997.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 18
Statements of Changes in Net Assets
The Sierra Variable Trust
For the Period Ended October 31, 1997* (Unaudited)
<TABLE>
<CAPTION>
CAPITAL
GROWTH GROWTH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------
<S> <C> <C> <C>
Net investment income.......................................... $ 430 $ 2,916 $ 11,163
Net realized gain/(loss) on investments during the period...... (104) -- 273
Capital gain distributions received............................ 3,302 2,627 13,070
Net unrealized depreciation of investments during the period (12,609) (31,574) (33,527)
-------- --------- ---------
Net decrease in net assets resulting from operations........... (8,981) (26,031) (9,021)
Distributions to shareholders from:
Net investment income................................. -- -- --
Net realized gains on investments..................... -- -- --
Net increase in net assets from Fund share transactions........ 534,157 1,111,670 2,077,060
-------- --------- ---------
Net increase in net assets..................................... 525,176 1,085,639 2,068,039
NET ASSETS:
Beginning of period............................................ -- -- --
-------- --------- ---------
End of period.................................................. $525,176 $1,085,639 $ 2,068,039
======== ========== ===========
Undistributed net investment income at end of period........... $ 430 $ 2,916 $ 11,163
======== ========== ===========
</TABLE>
*The Capital Growth, Growth and Balanced Portfolios commenced operations on June
3, 1997.
See Notes to Financial Statements.
<PAGE> 19
Statements of Changes in Net Assets - Capital Stock Activity
The Sierra Variable Trust
For the Period Ended October 31, 1997* (Unaudited)
<TABLE>
<CAPTION>
CAPITAL
GROWTH GROWTH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------
<S> <C> <C> <C>
AMOUNT
Sold.................................................. $553,187 $1,111,670 $2,128,812
Issued as reinvestment of dividends................... -- -- --
Redeemed.............................................. (19,030) -- (51,752)
-------- ---------- ----------
Net increase.......................................... $534,157 $1,111,670 $2,077,060
======== ========== ==========
SHARES
Sold.................................................. 51,237 104,192 203,993
Issued as reinvestment of dividends................... -- -- --
Redeemed.............................................. (1,762) -- (4,898)
-------- ---------- ----------
Net increase.......................................... 49,475 104,192 199,095
======== ========== ==========
</TABLE>
*The Capital Growth, Growth and Balanced Portfolios commenced operations on June
3, 1997.
See Notes to Financial Statements.
<PAGE> 20
FINANCIAL HIGHLIGHTS
CAPITAL GROWTH PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/97*
(UNAUDITED)
-----------
<S> <C>
Net asset value, beginning of period........................................................................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.......................................................................................... 0.02+++
Net realized and unrealized gain on investments................................................................ 0.59#
--------
Total from investment operations............................................................................... 0.61
LESS DISTRIBUTIONS:
Dividends from net investment income........................................................................... -
Distributions from net realized gains.......................................................................... -
--------
Total distributions............................................................................................ -
--------
Net asset value, end of period................................................................................. $ 10.61
========
TOTAL RETURN+ 6.10%
========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................................................................... $ 525
Ratio of operating expenses to average net assets++............................................................ 0.34%**
Ratio of net investment income to average net assets........................................................... 0.50%**
Portfolio turnover rate........................................................................................ 17%
Ratio of operating expenses to average net assets without credits allowed by the custodian++................... 0.47%**
Ratio of operating expenses to average net assets without fee waivers and credits allowed by the custodian++... 23.30%**
Net investment loss per share without fee waivers and credits allowed by the custodian......................... $ (0.75)+++
</TABLE>
- ----------
* The Portfolio commenced operations on June 3, 1997.
** Annualized.
+ Total return represents aggregate total return for the period
indicated. The total return would have been lower if certain fees had
not been waived and expenses absorbed by the administrator or without
credits allowed by the custodian.
++ The Portfolio will indirectly bear its prorated share of expenses of
the Underlying Funds.
+++ Per share numbers have been calculated using the average shares method.
# The amount shown may not accord with the change in the aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Portfolio shares.
<PAGE> 21
FINANCIAL HIGHLIGHTS
GROWTH PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/97*
(UNAUDITED)
-----------
<S> <C>
Net asset value, beginning of period........................................................................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.......................................................................................... 0.04+++
Net realized and unrealized gain on investments................................................................ 0.38#
--------
Total from investment operations............................................................................... 0.42
LESS DISTRIBUTIONS:
Dividends from net investment income........................................................................... -
Distributions from net realized gains.......................................................................... -
--------
Total distributions............................................................................................ -
--------
Net asset value, end of period................................................................................. $ 10.42
========
TOTAL RETURN+ 4.20%
========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................................................................... $ 1,086
Ratio of operating expenses to average net assets++............................................................ 0.35%**
Ratio of net investment income to average net assets........................................................... 1.21%**
Portfolio turnover rate........................................................................................ 0%
Ratio of operating expenses to average net assets without credits allowed by the custodian++................... 0.44%**
Ratio of operating expenses to average net assets without fee waivers and credits allowed by the custodian++ 8.52%**
Net investment loss per share without fee waivers and credits allowed by the custodian......................... $ (0.25)+++
</TABLE>
- ----------
* The Portfolio commenced operations on June 3, 1997.
** Annualized.
+ Total return represents aggregate total return for the period
indicated. The total return would have been lower if certain fees had
not been waived and expenses absorbed by the administrator or without
credits allowed by the custodian.
++ The Portfolio will indirectly bear its prorated share of expenses of
the Underlying Funds.
+++ Per share numbers have been calculated using the average shares method.
# The amount shown may not accord with the change in the aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Portfolio shares.
<PAGE> 22
FINANCIAL HIGHLIGHTS
BALANCED PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/97*
(UNAUDITED)
-----------
<S> <C>
Net asset value, beginning of period........................................................................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.......................................................................................... 0.08+++
Net realized and unrealized gain on investments................................................................ 0.31#
--------
Total from investment operations............................................................................... 0.39
LESS DISTRIBUTIONS:
Dividends from net investment income........................................................................... -
Distributions from net realized gains.......................................................................... -
--------
Total distributions............................................................................................ -
--------
Net asset value, end of period................................................................................. $ 10.39
========
TOTAL RETURN+ 3.90%
========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................................................................... $ 2,068
Ratio of operating expenses to average net assets++............................................................ 0.35%**
Ratio of net investment income to average net assets........................................................... 2.24%**
Portfolio turnover rate........................................................................................ 6%
Ratio of operating expenses to average net assets without credits allowed by the custodian++................... 0.39%**
Ratio of operating expenses to average net assets without fee waivers and credits allowed by the custodian++ 4.48%**
Net investment loss per share without fee waivers and credits allowed by the custodian......................... $ (0.06)+++
</TABLE>
- ----------
* The Portfolio commenced operations on June 3, 1997.
** Annualized.
+ Total return represents aggregate total return for the period
indicated. The total return would have been lower if certain fees had
not been waived and expenses absorbed by the administrator or without
credits allowed by the custodian.
++ The Portfolio will indirectly bear its prorated share of expenses of
the Underlying Funds.
+++ Per share numbers have been calculated using the average shares method.
# The amount shown may not accord with the change in the aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of Portfolio shares.
<PAGE> 23
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
THE SIERRA VARIABLE TRUST
1. ORGANIZATION AND BUSINESS
The Sierra Variable Trust (the "Trust") was organized under the laws of the
Commonwealth of Massachusetts on January 29, 1993 as a business entity commonly
known as a "Massachusetts business trust". The Trust is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a no-load,
open-end management investment company. The Trust offers fourteen managed
investment funds, consisting of nine funds: the Global Money Fund (the "Money
Fund"); the Short Term High Quality Bond, Short Term Global Government, U.S.
Government and Corporate Income Funds (the "Bond Funds"); the Growth and Income,
Growth, Emerging Growth and International Growth Funds (the "Equity Funds");
(collectively the "Funds" or "Underlying Funds") and five portfolios: Capital
Growth, Growth, Balanced, Value and Income Portfolios (individually a
"Portfolio" and collectively the "Portfolios"), to the public through certain
variable annuity contracts offered by American General Life Insurance Company
("AG Life"). Through investment in the Underlying Funds, the Portfolios offer a
range of asset allocation strategies designed to accommodate different
investment philosophies and goals. Information presented in these financial
statements pertains only to the Capital Growth, Growth and Balanced Portfolios.
Each Portfolio of the Trust invests, within predetermined percentage ranges, in
up to nine of the Underlying Funds of the Trust. In order to achieve its
investment objective, each Portfolio typically allocates its assets, within
determined percentage ranges, among certain of the Underlying Funds. The
percentages reflect the extent to which each Portfolio will invest in the
particular market segment represented by each Underlying Fund, and the varying
degrees of potential investment risk and reward represented by each Portfolio's
investments in those market segments and their corresponding Underlying Funds.
Sierra Investment Services Corporation ("Sierra Services") may alter these
percentage ranges when it deems appropriate. The assets of each Portfolio will
be allocated among the Underlying Funds in accordance with its investment
objective, Sierra Services' outlook for the economy and the financial markets
and the relative market valuations of the Underlying Funds. In addition,
generally in order to meet liquidity needs or for temporary defensive purposes,
each Portfolio may invest its assets directly in cash, stock or bond index
futures, options, money market securities and certain short-term debt
instruments.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Portfolios in the
preparation of their financial statements.
PORTFOLIO VALUATION:
The Portfolios are valued at their net asset value per share of each Underlying
Fund determined as of the close of the New York Stock Exchange on the valuation
date. Short term investments that mature in 60 days or less are valued at
amortized cost when the Board of Trustees determines that this constitutes fair
value.
REPURCHASE AGREEMENTS:
Each Portfolio may engage in repurchase agreement transactions. Under the terms
of a typical repurchase agreement, the Portfolio, through its custodian, takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Portfolio to resell, the obligation at an agreed
upon price and time, thereby determining the yield during the Portfolio's
holding period. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Portfolio's holding period. The value
of the collateral is at least equal at all times to the total amount of the
repurchase obligation, including interest. In the event of counterparty default,
the Portfolio has the right to use the collateral to offset losses incurred.
There is potential loss to the Portfolio in the event the Portfolio is delayed
or prevented from exercising its right to dispose of the collateral securities,
including the risk of a possible decline in the value of the underlying
securities during the period while the Portfolio seeks to assert its rights.
Sierra Services, the Portfolios' investment advisor, acting under the
supervision of the Board of Trustees, reviews the value of the collateral and
the creditworthiness of those banks and dealers with which the Portfolio enters
into repurchase agreements to evaluate potential risks.
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
THE SIERRA VARIABLE TRUST
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded as of the trade date (the date the order to
buy or sell is executed). Realized gains and losses from securities sold are
recorded on the identified cost basis. Interest income is recorded on the
accrual basis. Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income of the Balanced Portfolio are declared and
paid quarterly. Dividends from net investment income of the Capital Growth and
Growth Portfolios are declared and paid annually. Distributions of any net
long-term capital gains earned by a Portfolio are made annually. Distributions
of any net short-term capital gains earned by a Portfolio are distributed no
less frequently than annually at the discretion of the Board of Trustees. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Portfolios, timing
differences and differing characterization of distributions made by each
Portfolio as a whole.
FEDERAL INCOME TAXES:
It is each Portfolio's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies and by, among other
things, distributing substantially all of its taxable and tax-exempt earnings to
its shareholders. Therefore, no Federal income tax provision is required.
EXPENSES:
Expenses that are directly related to one of the Portfolios are charged directly
to that Portfolio. General expenses of the Trust are allocated to the Portfolios
based upon the relative net assets of each Portfolio. In addition, the
Portfolios will indirectly bear their prorated share of expenses of the
Underlying Funds.
3. INVESTMENT ADVISORY, SUB-ADVISORY, ADMINISTRATION FEES AND OTHER
TRANSACTIONS
As investment advisor to the Portfolios, Sierra Services provides its
proprietary asset allocation services to the Portfolios, formulates the
Portfolios' investment policies, analyzes economic and market trends, exercises
investment discretion over the assets of the Portfolios and monitors the
allocation of each Portfolio's assets and each Portfolio's performance. For its
investment advisory services to the Portfolios, Sierra Services is entitled to a
fee, which is calculated daily and paid monthly, at an annual rate of 0.10% of
each Portfolio's average daily net assets.
Sierra Services is a wholly-owned subsidiary of Sierra Capital Management
Corporation ("SCMC"), which is a wholly-owned subsidiary of Great Western
Financial Corporation ("GWFC"), a wholly-owned subsidiary of Washington Mutual,
Inc. ("Washington Mutual"), a publicly held corporation. Sierra Services is now
an indirect wholly-owned subsidiary of Washington Mutual.
Sierra Fund Administration Corporation ("Sierra Administration"), an indirect
wholly-owned subsidiary of Washington Mutual, serves as administrator to each
Portfolio. First Data Investor Services Group, Inc., a wholly-owned subsidiary
of First Data Corporation, serves as sub-administrator and transfer agent to
each Portfolio. For its services as administrator, each Portfolio pays Sierra
Administration a monthly fee at an annual rate of .15% of the value of each
Portfolio's average daily net assets. Out of its fee, Sierra Administration pays
First Data Investor Services Group, Inc. for its services as sub-administrator.
The Trust pays First Data Investor Services Group, Inc. certain out-of-pocket
expenses as transfer agent. Separately, the Trust pays First Data Investor
Services Group, Inc. for its services as transfer agent.
<PAGE> 25
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
THE SIERRA VARIABLE TRUST
Fees voluntarily waived and expenses absorbed by Sierra Administration for the
period ended October 31, 1997 are as follows:
<TABLE>
<CAPTION>
NAME OF FUND FEES WAIVED EXPENSES ABSORBED
------------ ----------- -----------------
<S> <C> <C>
Capital Growth Portfolio $128 $19,306
Growth Portfolio 361 19,095
Balanced Portfolio 747 19,632
</TABLE>
The Trust also pays Boston Safe Deposit and Trust Company ("Boston Safe"), the
Trust's custodian, certain custodial transaction charges. Boston Safe is a
wholly-owned subsidiary of Mellon Bank Corporation.
Custodian fees have been reduced by credits allowed by Boston Safe for the
period ended October 31, 1997 as follows:
<TABLE>
<CAPTION>
Credits
Allowed by the
Name of Fund Custodian
------------ --------------
<S> <C>
Capital Growth Portfolio $111
Growth Portfolio 211
Balanced Portfolio 198
</TABLE>
4. TRUSTEES' FEES
No director, officer or employee of Washington Mutual, Great Western Financial
Securities Corporation ("GW Securities"), a registered broker-dealer, Sierra
Services, a registered investment adviser and broker-dealer and the Trust's
distributor, Sierra Administration or First Data Investor Services Group, Inc.,
or any of their affiliates receives any compensation from the Trust for serving
as an officer or Trustee of the Trust. GW Securities and Sierra Services are
indirect wholly-owned subsidiaries of Washington Mutual. The Trust pays each
Trustee who is not a director, officer or employee of Washington Mutual, GW
Securities, Sierra Services, Sierra Administration or First Data Investor
Services Group, Inc., or any of their affiliates, $5,000 per annum plus $1,250
per board meeting attended, $1,000 per audit and/or nominating committee meeting
attended and reimbursement for travel and out-of-pocket expenses. The Chairman
of the Board of Trustees receives one and a half times the normal Trustee's
compensation. The Chairman of the Audit Committee receives $1,500 per audit
committee meeting attended.
Pursuant to an exemptive order granted by the Securities and Exchange
Commission, the Trust's eligible Trustees may participate in a deferred
compensation plan (the "Plan") which may be terminated at any time. Under the
Plan, Trustees may elect to defer receipt of all or a portion of their fees
which, in accordance with the Plan, may be invested in mutual fund shares. Upon
termination of the Plan, Trustees that have deferred accounts under the Plan
will be paid benefits no later than the time the payments would otherwise have
been made without regard to such termination. All benefits provided under these
plans are funded and any payments to plan participants are paid solely out of
the Trust's assets.
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
THE SIERRA VARIABLE TRUST
5. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. Government and short-term investments, for the period ended October 31,
1997 were as follows:
<TABLE>
<CAPTION>
NAME OF FUND Purchases Sales
------------ --------- -----
<S> <C> <C>
Capital Growth Portfolio $ 588,436 $38,403
Growth Portfolio 1,000,288 --------
Balanced Portfolio 1,856,767 65,909
</TABLE>
At October 31, 1997, aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there is an excess of tax
cost over value were as follows:
<TABLE>
<CAPTION>
Tax Basis Tax Basis
UNREALIZED Unrealized
NAME OF FUND Appreciation Depreciation
------------ ------------ ------------
<S> <C> <C>
Capital Growth Portfolio $ 94 $12,703
Growth Portfolio 2,577 34,151
Balanced Portfolio 7,964 41,491
</TABLE>
6. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest, each
without par value.
7. ORGANIZATION COSTS
Expenses incurred in connection with the organization of the Portfolios,
including the fees and expenses of registering and qualifying each Portfolio's
shares for distribution under Federal and state securities regulations, are
being amortized on a straight-line basis over a period of 60 months from
commencement of operations of each Portfolio. In the event any of the initial
shares of a Portfolio are redeemed by any holder thereof during the amortization
period, the proceeds of such redemptions will be reduced by an amount equal to
the pro-rata portion of the applicable Portfolio's unamortized deferred
organizational expenses in the same proportion as the number of shares being
redeemed bears to the number of initial shares of such Portfolio outstanding at
the time of such redemption.
8. RISK FACTORS OF THE PORTFOLIOS
Investing in the Underlying Funds through the Portfolios involves certain
additional expenses and tax results that would not be present in a direct
investment in the Underlying Funds. Under certain circumstances, an Underlying
Fund may determine to make payment of a redemption request by a Portfolio wholly
or partly by a distribution in kind of securities from its portfolio, instead of
cash, in accordance with the rules of the Securities and Exchange Commission. In
such cases, the Portfolios may hold securities distributed by an Underlying Fund
until Sierra Services determines that it is appropriate to dispose of such
securities.
Certain Underlying Funds may: invest a portion of their assets in foreign
securities; enter into forward foreign currency transactions; lend their
portfolio securities; enter into stock index, interest rate and currency futures
contracts, and options on such contracts; enter into interest rate swaps or
purchase or sell interest rate caps or floors; engage in other types of options
transactions; make short sales; purchase zero coupon and payment-in-kind bonds;
engage in repurchase or reverse repurchase agreements; purchase and sell "when-
issued" securities and engage in "delayed-delivery" transactions; and engage in
various other investment practices each with inherent risks.
<PAGE> 27
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
THE SIERRA VARIABLE TRUST
The Capital Growth Portfolio can invest as much as 50% of its total assets in
the Growth Fund and as much as 50% of its total assets in the Emerging Growth
Fund, each of which Underlying Funds may invest as much as 35% of its total
assets in lower-rated bonds. Securities rated below investment grade generally
involve greater price volatility and risk of principal and income and may be
less liquid than higher rated securities.
Certain Portfolios invest as much as 50% of their total assets in the Growth or
Emerging Growth Funds, each of which may invest up to 25% of its total assets in
foreign equity securities and as much as 5% of its total assets in securities in
developing or emerging markets countries. Certain Portfolios invest as much as
50% of their total assets in the International Growth Fund, which invests
primarily in the foreign equity securities, and may invest as much as 30% of its
total assets in securities in developing or emerging market countries. These
investments will subject such Portfolios to risks associated with investing in
foreign securities including those resulting from future adverse political and
economic developments and the possible imposition of currency exchange blockages
or other foreign governmental laws or restrictions.
The officers and Trustees of the Trust also serve as officers and Trustees of
the Underlying Funds. In addition, Sierra Services, the investment advisor and
distributor of each Portfolio, and Sierra Investment Advisors Corporation
("Sierra Advisors"), the investment advisor of the Underlying Funds, are both
wholly-owned subsidiaries of SCMC. Also, Sierra Services is the distributor of
the shares of the Underlying Funds. Conflicts may arise as these companies seek
to fulfill their fiduciary responsibilities to both the Portfolios and the
Underlying Funds.
From time to time, one or more of the Underlying Funds used for investment by a
Portfolio may experience relatively large investments or redemptions due to
reallocations or rebalancings by the Portfolios as recommended by Sierra
Services. These transactions will affect the Underlying Funds, since the
Underlying Funds that experience redemptions as a result of the reallocations or
rebalancings may have to sell portfolio securities and Underlying Funds that
receive additional cash will have to invest such cash. While it is impossible to
predict the overall impact of these transactions over time, there could be
adverse effects on portfolio management to the extent that the Underlying Funds
may be required to sell securities or invest cash at times when they would not
otherwise do so. These transactions could also have tax consequences if sales of
securities resulted in gains and could also increase transactions costs. Sierra
Advisors, representing the interests of the Underlying Funds, is committed to
minimizing the impact of Portfolio transactions on the Underlying Funds; Sierra
Services, representing the interest of the shareholders of the Portfolios, is
also committed to minimizing such impact on the Underlying Funds to the extent
it is consistent with pursuing the investment objectives of the Portfolios.
Sierra Advisors and Sierra Services will nevertheless face conflicts in
fulfilling their respective responsibilities because they are affiliates and
employ some of the same investment professionals.
<PAGE> 28
THE SIERRA VARIABLE TRUST
PART C
Item 24. Financial Statements and Exhibits
(a) Financial Statements (included in Part A)
- Unaudited Financial Highlights relating to the Capital
Growth, Growth, and Balanced Portfolios for the period
ended October 31, 1997.
- Unaudited Financial Highlights relating to the Global
Money Fund for the period ended June 30, 1997.
Financial Statements (included in Part B)
- The following unaudited financial statements relating
to the Capital Growth, Growth, and Balanced Portfolios
for the period ended June 30, 1997 are filed herewith.
Portfolio Investments
Statements of Assets and Liabilities
Statements of Operations
Statements of Changes in Net Assets
Financial Highlights
Notes to Financial Statements
- The following unaudited financial statements relating
to the Global Money Fund, Short Term High Quality Bond
Fund, Short Term Global Government Fund, U.S. Government
Fund, Corporate Income Fund, Growth and Income Fund,
Growth Fund, Emerging Growth Fund and International
Growth Fund as of June 30, 1997 are hereby incorporated
by reference to the Statement of Additional Information
from Form N-30D, the Semi-Annual Report to Shareholders,
as filed with the Securities and Exchange Commission on
September 5, 1997 (Accession Number 0000927356-97-
001058).
Statement of Assets and Liabilities
Statements of Operations
Statements of Changes in Net Assets
Financial Highlights
Portfolio of Investments
Notes to Financial Statements
(b) Exhibits:
<TABLE>
<S> <C>
1(a) Agreement and Declaration of Trust, dated January 29, 1993, originally filed as exhibit to Registration
Statement on Form N-1A February 2, 1993, is incorporated by reference to Post-Effective Amendment
No. 7 filed on February 28, 1997.
1(b)-1 Amendment No. 1 to the Trust's Agreement and Declaration of Trust, dated April 27,
1993, originally filed as an exhibit to Post-Effective Amendment No. 1 October 13, 1993,
is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
1(b)-2 Amendment No. 2 to the Trust's Agreement and Declaration of Trust, dated September 22, 1993,
originally filed as an exhibit to Post-Effective Amendment No. 1 October 13, 1993, is
incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
</TABLE>
<PAGE> 29
<TABLE>
<S> <C>
1(c)-1 Establishment and Designation of Series of Shares of Beneficial Interest, dated April 27, 1993, with
respect to the Global Money, Short Term Global Government, U.S. Government, Corporate Income, Growth and
International Growth Funds, originally filed as an exhibit to Post-Effective Amendment No. 1 October 13,
1993, is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
1(c)-2 Establishment and Designation of Series of Shares of Beneficial Interest, dated February 3, 1995, with
respect to the Short Term High Quality Bond, Growth and Income and Emerging Growth Funds, originally filed
as an exhibit to Post-Effective Amendment No. 3 February 10, 1995, is incorporated by reference to
Post-Effective Amendment No. 7 filed on February 28, 1997.
1(c)-3 Establishment and Designation of Series of Shares of Beneficial Interest, dated January 23, 1997 with
respect to the Income, Value, Balanced, Growth and Capital Growth Portfolios is incorporated by reference
to Post-Effective Amendment No. 7 filed on February 28, 1997
2 By-Laws of the Trust, originally filed as exhibit to Registration Statement on Form N-1A February 2, 1993,
is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
3 Not Applicable.
4 Not Applicable.
5(a)-1 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Investment Advisors
Corporation ("Sierra Advisors") with respect to the Global Money Fund, originally filed as an exhibit to
Post-Effective Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment
No. 7 filed on February 28, 1997.
5(a)-2 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with respect to the
International Growth Fund, originally filed as an exhibit to Post-Effective Amendment No. 1 October 13,
1993, is incorporated by reference to Post- Effective Amendment No. 7 filed on February 28, 1997.
5(a)-3 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with respect to the
U.S. Government Fund, originally filed as an exhibit to Post- Effective Amendment No. 1 October 13, 1993,
is incorporated by reference to Post- Effective Amendment No. 7 filed on February 28, 1997.
5(a)-4 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with respect to the
Corporate Income Fund, originally filed as an exhibit to Post-Effective Amendment No. 1 October 13, 1993,
is incorporated by reference to Post- Effective Amendment No. 7 filed on February 28, 1997.
5(a)-5 Management Agreement , dated as of April 8, 1993, between the Trust and Sierra Advisors with respect to the
short Term Global Government Fund, originally filed as an exhibit to Post-Effective Amendment No. 1 October
13, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
5(a)-6 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with respect to the
Growth Fund, originally filed as an exhibit to Post-Effective Amendment No. 1 October 13, 1993, is
incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
5(a)-7 Form of Management Agreement between the Trust and Sierra Advisors with respect to the Short Term High
Quality Bond, Growth and Income and Emerging Growth Funds, was filed as an exhibit to Post-Effective
Amendment No. 1 on October 13, 1993.
(Replaced by Exhibits 5(a)-9, 5(a)-10, 5(a)-11)
5(a)-8 Investment Advisory Agreement dated May 1, 1997 between the Trust and Sierra Services is incorporated by
reference to Post-Effective Amendment No. 9 filed on April 30, 1997.
</TABLE>
<PAGE> 30
<TABLE>
<S> <C>
5(a)-9 Management Agreement, dated January 1, 1994, between the Trust and Sierra Advisors, with respect to the
Short Term High Quality Bond Fund, is incorporated by reference to Post-Effective Amendment No. 7 filed on
February 28, 1997.
5(a)-10 Management Agreement, dated January 1, 1994, between the Trust and Sierra Advisors, with respect to the
Growth and Income Fund, is incorporated by reference to Post- Effective Amendment No. 7 filed on February
28, 1997.
5(a)-11 Management Agreement, dated January 1, 1994, between the Trust and Sierra Advisors, with respect to the
Emerging Growth Fund, is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28,
1997.
5(b)-1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and J.P. Morgan Investment
Management Inc. ("J.P. Morgan") with respect to the Global Money Fund, originally filed as an exhibit to
Post-Effective Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment
No. 7 filed on February 28, 1997.
5(b)-2.1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and J.P. Morgan with respect to
the International Growth Fund, was filed as Exhibit 5(b)-2 to Post-Effective Amendment No. 1 on October 13,
1993. (no longer in effect)
5(b)-2.2 Sub-Adviser Agreement, dated as of April 8, 1996, between Sierra Advisors and Warburg, Pincus Counsellors,
Inc. ("Warburg") with respect to the International Growth Fund, is incorporated by reference to Exhibit
5(b)-2 of Post-Effective Amendment No. 5 filed on April 26, 1996.
5(b)-3.1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and Van Kampen Merritt Management
Inc. with respect to the U.S. Government Fund, was filed as Exhibit 5(b)-3 to Post-Effective Amendment No.
1 on October 13, 1993. (no longer in effect)
5(b)-3.2 Sub-Adviser Agreement, dated as of February 28, 1995 between Sierra Advisors and BlackRock Financial
Management, LP. with respect to the U.S. Government Fund is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
5(b)-4 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and TCW Funds Management, Inc.
with respect to the Corporate Income Fund, originally filed as an exhibit to Post-Effective Amendment No. 1
October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28,
1997.
5(b)-5 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and Scudder, Stevens & Clark,
Inc. ("Scudder") with respect to the Short Term Global Government Fund, originally filed as an exhibit to
Post-Effective Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment
No. 7 filed on February 28, 1997.
5(b)-6.1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and Janus Capital Corporation
("Janus") with respect to the Growth Fund, was filed as Exhibit 5(b)- 6 to Post-Effective Amendment No. 1
on October 13, 1993. (no longer in effect)
5(b)-6.2 Amended and Restated Sub-Adviser Agreement between Sierra Advisors and Janus with respect to the Growth
Fund, originally filed as an exhibit to Post-Effective Amendment No. 2 on April 22, 1994, is incorporated
by reference to Exhibit 5(b)-6B of Post- Effective No. 7 filed on February 28, 1997.
5(b)-7 Sub-Adviser Agreement, dated as of January 1, 1994, between Sierra Advisors and J.P. Morgan with respect to
the Growth and Income Fund is incorporated by reference to Post- Effective Amendment No. 7 filed on
February 28, 1997.
5(b)-8 Sub-Adviser Agreement, dated as of January 1, 1994, between Sierra Advisors and Scudder with respect to the
Short Term High Quality Bond Fund is incorporated by reference to Post-Effective Amendment No. 7 filed on
February 28, 1997.
</TABLE>
<PAGE> 31
<TABLE>
<S> <C>
5(b)-9 Sub-Adviser Agreement, dated as of January 1, 1994, between Sierra Advisors and Janus with respect to the
Emerging Growth Fund is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28,
1997.
6(a) Distribution Agreement, dated April 19, 1993, between the Trust and Sierra Investment Services Corporation
("Sierra Services"), originally filed as an exhibit to Post-Effective Amendment No. 1 October 13, 1993, is
incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
6(b)-1 Participation Agreement, regarding Sierra Advantage among the Trust, Sierra Advisors, Sierra Services,
American General Life Insurance Company ("American General") and American General Securities Incorporated
("American General Securities"), dated as of may 3, 1993, originally filed as an exhibit to Post-Effective
Amendment No. 2 on April 22, 1994, is incorporated by reference to Exhibit 6(b) of Post-Effective No. 7
filed on February 28, 1997.
6(b)-2 Form of First Amendment to Participation Agreement dated as of May 3, 1993 is incorporated by reference to
Post-Effective Amendment No. 9 filed on April 30, 1997.
7 Not Applicable.
8(a)-1 Custody Agreement, dated as of January 1, 1996, between the Trust and Boston Safe Deposit & Trust Company
is incorporated by reference to Exhibit 8(a) of Post-Effective Amendment No. 7 filed on February 28, 1997.
8(a)-2 Schedules A and C, as amended and supplemented May 1, 1997, to Custody Agreement (Exhibit 8(a)-1 above)
dated January 1, 1996 is incorporated by reference to Post- Effective Amendment No. 9 filed on April 30,
1997.
8(b) Transfer Agency and Services Agreement, dated as of July 1, 1996, between the Trust and First Data Investor
Services Group is incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
9(a)-1 Administration Agreement, dated April 19, 1993, between the Trust and Sierra Fund Administration
Corporation ("Sierra Administration") was filed as Exhibit 9(a) to Post- Effective Amendment No. 1 on
October 13, 1993.
9(a)-2 Administration Agreement, dated as of July 1, 1996, between the Trust and Sierra Administration is
incorporated by reference to Exhibit 9(a) of Post- Effective Amendment No. 7 filed on February 28, 1997.
9(a)-3 Form of Administration Agreement dated May 1, 1997 between the Trust and Sierra Administration is
incorporated by reference to Post-Effective Amendment No. 9 filed on April 30, 1997.
9(b)-1 Sub-Administration Agreement, dated April 19, 1993, between Sierra Administration and The Boston Company
Advisors, Inc was filed as an Exhibit 9(b) to Post-Effective Amendment No. 1 on October 13, 1993.
9(b)-2 Form of Sub-Administration Agreement between Sierra Administration and First Data Investor Services Group,
Inc. is incorporated by reference to Post-Effective Amendment No. 9 filed on April 30, 1997.
10 Consent and Opinion of Counsel with Rule 24f-2 Notice filed with the Securities and Exchange Commission on
February 24, 1997.
11(a)-1 Powers of Attorney with respect to Registration Statements and Amendments thereto signed by the following
persons in their capacities as Trustees and, where applicable, officers of the Trust: David E. Anderson,
Arthur H. Bernstein, F. Brian Cerini, Edmond R. Davis, Alfred E. Osborne, Jr., and Keith B. Pipes,
originally filed as an exhibit to Pre- Effective Amendment No. 1 on March 29, 1993, is incorporated by
reference to Post- Effective Amendment No. 7 on February 28, 1997.
</TABLE>
<PAGE> 32
<TABLE>
<S> <C>
11(a)-2 Power of Attorney with respect to Registration Statements and Amendments thereto signed by the following
person in his capacity as Trustee: John W. English, originally filed as an exhibit to Post-Effective
Amendment No. 3 on February 10, 1995, is incorporated by reference to Post-Effective Amendment No. 7 filed
on February 28, 1997.
11(b) Amended and Restated Agreement Concerning Allocation of Fidelity Bond Premiums and Recovery, dated February
14, 1996, among the Trust, the Sierra Trust Funds and the Sierra Prime Income Fund is incorporated by
reference to Post-Effective Amendment No. 5 filed on April 26, 1996.
11(c) Amended and Restated Agreement Concerning Allocation of Joint Liability (Errors and Omissions) Insurance
Policy Premiums, dated February 14, 1996, among the Trust, the Sierra Trust Funds and the Sierra Prime
Income Fund is incorporated by reference to Post-Effective Amendment No. 5 filed on April 26, 1996.
11(d) Indemnification Agreement, dated as of May 3, 1993, among Sierra Advisors, Sierra Services, American
General, and American General Securities, was filed as an exhibit to Post-Effective Amendment No. 1 on
October 13, 1993.
11(e) Consent of Independent Accountants *
12 Not Applicable.
13 Not Applicable.
14 Not Applicable.
15 Not Applicable.
16(a) Certain Performance Data relating to the Funds, originally filed as an exhibit to Post- Effective Amendment
No. 2 on April 22, 1994, is incorporated by reference to Post- Effective No. 7 filed on February 28, 1997.
17 Financial Data Schedules.
</TABLE>
- ----------
* To be filed by amendment.
Item 25. Persons Controlled by or Under Common Control with Registrant
The Trust is a business trust organized under the laws of the
Commonwealth of Massachusetts. Separate Account D of American General Life
Insurance Company is the sole shareholder of, and may be deemed to control, the
Trust. American General Life Insurance Company is a subsidiary of American
General Corporation.
The list of American General Corporation's active subsidiaries is
hereby incorporated by reference to Item 26 of the Form N-4 registration
statement of American General Life Insurance Company and its Separate Account D,
File No. 33-57730 and File No. 811-2441.
<PAGE> 33
Item 26. Number of Holders of Securities
<TABLE>
<CAPTION>
(2)
(1) No. of Record Holders at
Title of Class November 30, 1997
- --------------------------------------------------------------------------------
<S> <C>
Shares of the Global Money Fund, without par value 1
- --------------------------------------------------------------------------------
Shares of the Short Term High Quality Bond Fund, 1
without par value
- --------------------------------------------------------------------------------
Shares of the Short Term Global Government Fund, 1
without par value
- --------------------------------------------------------------------------------
Shares of the U.S. Government Fund, without par 1
value
- --------------------------------------------------------------------------------
Shares of the Corporate Income Fund, without par 1
value
- --------------------------------------------------------------------------------
Shares of the Growth and Income Fund, without par 1
value
- --------------------------------------------------------------------------------
Shares of the Growth Fund, without par value 1
- --------------------------------------------------------------------------------
Shares of the Emerging Growth Fund, without par 1
value
- --------------------------------------------------------------------------------
Shares of the International Growth Fund, without par 1
value
- --------------------------------------------------------------------------------
Shares of the Capital Growth 1
Portfolio, without par value
- --------------------------------------------------------------------------------
Shares of the Growth 1
Portfolio, without par value
- --------------------------------------------------------------------------------
Shares of the Balanced Portfolio, without par value 1
- --------------------------------------------------------------------------------
Shares of the Value Portfolio, 1
without par value
- --------------------------------------------------------------------------------
Shares of the Income Portfolio, without par value 1
================================================================================
</TABLE>
Item 27. Indemnification
Article VIII of the Registrant's Agreement and Declaration of
Trust provides in relevant part:
The Trust shall indemnify each of its Trustees and officers
(including persons who serve at the Trust's request as
directors, officers or trustees of another organization
<PAGE> 34
in which the Trust has any interest as a shareholder,
creditor or otherwise) (hereinafter referred to as a "Covered
Person") against all liabilities and expenses, including but
not limited to amounts paid in satisfaction of judgments, in
compromise or as fines and penalties, and counsel fees
reasonably incurred by any Covered Person in connection with
the defense or disposition of any action, suit or other
proceeding, whether civil or criminal, before any court or
administrative or legislative body, in which such Covered
Person may be or may have been involved as a party or
otherwise or with which such Covered Person may be or may
have been threatened, while in office or thereafter, by
reason of being or having been such a Covered Person except
with respect to any matter as to which such Covered Person
shall have been finally adjudicated in any such action, suit
or other proceeding to be liable to the Trust or its
Shareholders by reason of wilful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved
in the conduct of such Covered Person's office. Expenses,
including counsel fees so incurred by any such Covered Person
(but excluding amounts paid in satisfaction of judgments, in
compromise or as fines or penalties), shall be paid from time
to time by the Trust in advance of the final disposition of
any such action, suit or proceeding upon receipt of an
undertaking by or on behalf of such Covered Person to repay
amounts so paid to the Trust if it is ultimately determined
that indemnification of such expenses is not authorized under
this Article; provided, however, that either (a) such Covered
Person shall have provided appropriate security for such
undertaking, (b) the Trust shall be insured against losses
arising from any such advance payments or (c) either a
majority of the disinterested Trustees acting on the matter
(provided that a majority of the disinterested Trustees then
in office act on the matter), or independent legal counsel in
a written opinion, shall have determined, based upon a review
of readily available facts (as opposed to a full trial type
inquiry) that there is reason to believe that such Covered
Person will be found entitled to indemnification under this
Article.
As to any matter disposed of (whether by a compromise
payment, pursuant to a consent decree or otherwise) without
an adjudication by a court, or by any other body before which
the proceeding was brought, that such Covered Person is
liable to the Trust or its Shareholders by reason of wilful
misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his or her
office, indemnification shall be provided if (a) approved,
after notice that it involves such indemnification, by at
least a majority of the disinterested Trustees acting on the
matter (provided that a majority of the disinterested
Trustees then in office act on the matter) upon a
determination, based upon a review of readily available facts
(as opposed to a full trial type inquiry) that such Covered
Person is not liable to the Trust or its Shareholders by
reasons of wilful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of
his or her office, or (b) there has been obtained an opinion
in writing of independent legal counsel, based upon a review
of readily available facts (as opposed to a full trial type
inquiry) to the effect that such indemnification would not
protect such Person against any liability to the Trust to
which he or she would otherwise be subject by reason of
wilful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his
office. Any approval pursuant to this Section shall not
prevent the recovery from any Covered Person of any
<PAGE> 35
amount paid to such Covered Person in accordance with this
Section as indemnification if such Covered Person is
subsequently adjudicated by a court of competent jurisdiction
to have been liable to the Trust or its Shareholders by
reason of wilful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of
such Covered Person's office.
Section 9 of the Sub-Adviser Agreements that are filed as
Exhibits 5(b)-2 and 5(b)- 7 to this Registration Statement are hereby
incorporated by reference in response to this item. They provide that, in the
absence of willful misfeasance, bad faith or gross negligence on the part of
J.P. Morgan, or reckless disregard of its obligations and duties thereunder
("Disqualifying Conduct"), J.P. Morgan shall not be subject to any liability to
the Trust or the Fund, or to any shareholder of the Fund, for any act or
omission in the course of, or connected with, rendering services hereunder. This
Section further provides that Sierra Advisors shall indemnify and hold harmless
J.P. Morgan from and against all claims, losses, liabilities or damages
(including reasonable attorneys' fees and other related expenses) (collectively,
"Losses"), howsoever arising under this Agreement or the performance by J.P.
Morgan of its duties thereunder; provided, however, that nothing contained
therein shall require that J.P. Morgan be indemnified for Losses resulting from
Disqualifying Conduct.
Section 11 of the Sub-Adviser Agreements that are filed as
Exhibits 5(b)-6 and 5(b)-9 to this Registration Statement are hereby
incorporated by reference in response to this item. They provide that Sierra
Advisors will indemnify and hold harmless Janus from and against any and all
claims, losses, liabilities or damages (including reasonable attorneys' fees and
other related expenses), howsoever arising from or in connection with these
Sub-Adviser Agreements or the performance by Janus of its duties thereunder;
provided, however, that nothing contained therein shall require that Janus be
indemnified for Disqualifying Conduct.
Section 12 of the Participation Agreement that is filed as
Exhibit 6(b) to this Registration Statement is hereby incorporated by reference
in response to this item. Section 12.1 thereof provides that American General
will indemnify the Trust and Sierra Services and their directors, trustees,
officers and controlling persons from losses and costs due to misstatements or
omissions of material facts for which American General is responsible in its
registration statement relating to annuities funded through the Trust or
otherwise or due to American General's failure to meet its obligations under the
Participation Agreement. Section 12.2 thereof provides that Sierra Services will
indemnify the Trust, American General, American General Securities and their
directors, trustees, officers and controlling persons from losses and costs due
to any misstatements or omissions of material facts for which Sierra Services or
its affiliates are responsible in American General registration statements
relating to annuities funded through the Trust or otherwise or as a result of
any failure by the Trust or Sierra Services to meet its obligations under the
Participation Agreement.
The Agreement filed as Exhibit 11(d) to this Registration
Statement is hereby incorporated by reference in response to this item. Pursuant
to that Agreement, Sierra Advisors and Sierra Services agree to indemnify
American General and American General Securities with respect to liabilities
arising out of the negligence or bad faith of Sierra Services, Sierra Advisors
or any sub- advisor to the Trust in performing their obligations to the Trust,
including the obligations of Sierra Advisors and the sub-advisors to operate the
Trust in compliance with Sub-Chapter M and Section 817(h) of the Internal
Revenue Code of 1986, as amended. Sierra Advisors and Sierra Services also
<PAGE> 36
agree to indemnify American General and American General Securities for 50% of
any other liabilities or costs that they may incur as a result of any failure of
the Trust to comply with Sub-Chapter M or Section 817(h) that does not result
from such negligence or bad faith.
Insofar as indemnification for liability arising under the
Securities Act of 1933, as amended (the "1933 Act"), may be permitted to
Trustees, officers and controlling persons of Registrant pursuant to the
foregoing provisions, or otherwise, Registrant has been advised that, in the
opinion of the Securities and Exchange Commission, such indemnification is
against public policy as expressed in the 1933 Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by Registrant of expenses incurred or paid
by a Trustee, officer or controlling person of Registrant in the successful
defense of any action, suit or proceeding) is asserted by such Trustee, officer
or controlling person in connection with the securities being registered,
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the 1933 Act and will be governed by the final adjudication of such
issue.
Item 28(a). Business and Other Connections of Investment Advisor
--Sierra Investment Advisors Corporation, formerly
Great Western Financial Advisors Corporation
As of October 9, 1992, the name of Great Western Financial
Advisors Corporation was changed to Sierra Investment Advisors Corporation
("Sierra Advisors"). Sierra Advisors is an investment advisor registered under
the Investment Advisers Act of 1940, as amended (the "Advisers Act").
The list required by this Item 28 of officers and directors of
Sierra Advisors, together with information as to any other business, profession,
vocation or employment of substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to Schedules A
and D of Form ADV filed by Sierra Advisors pursuant to the Advisers Act (SEC
File No. 801-32921).
Sierra Investment Services Corporation ("Sierra Services") is the
investment advisor of the Portfolios.
Sierra Services does not currently act as depositor or investment
advisor for any other investment company.
The information required by this Item 28 with respect to each
director and officer of Sierra Services is incorporated by reference to Schedule
A of Form BD filed by Sierra Services pursuant to the Securities Exchange Act of
1934 (SEC File No. 8-45144).
Item 28(b). Business and Other Connections of Investment Sub-Advisor -- J.P.
Morgan Investment Management Inc.
J.P. Morgan Investment Management Inc. ("J.P. Morgan") is a
wholly owned subsidiary of J.P. Morgan & Co. Incorporated, a bank holding
company. J.P. Morgan is an
<PAGE> 37
investment advisor registered under the Advisers Act and manages employee
benefit funds of corporations, labor unions and state and local governments and
the accounts of other institutional investors.
The list required by this Item 28 of officers and directors of
J.P. Morgan, together with information as to any other business, profession,
vocation or employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to Schedules A
and D of Form ADV filed by J.P. Morgan pursuant to the Advisers Act (SEC File
No. 801-21011).
Item 28(c). Business and Other Connections of Investment Sub-Advisor -- TCW
Funds Management, Inc.
TCW Funds Management, Inc. ("TCW") is an investment advisor
registered under the Advisers Act, and acts as investment advisor for registered
investment companies and foreign investment companies. TCW, and its affiliates,
including Trust Company of the West, provide a variety of trust, investment
management and investment advisory services.
The list required by this Item 28 of officers and directors of
TCW, together with information as to any other business, profession, vocation or
employment of a substantial nature engaged in by such officers and directors
during the past two years, is incorporated by reference to Schedules A and D of
Form ADV filed by TCW pursuant to the Advisers Act (SEC File No.
801-29075).
Item 28(d). Business and Other Connections of Investment Sub-Advisor --
Scudder, Stevens & Clark, Inc.
Scudder, Stevens & Clark, Inc. ("Scudder") is an investment
advisor registered under the Advisers Act, and acts as investment advisor for
registered investment companies and foreign investment companies. Scudder, and
its affiliates, provide a variety of trust, investment management and investment
advisory services.
The list required by this Item 28 of officers and directors of
Scudder, together with information as to any other business, profession,
vocation or employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to Schedules A
and D of Form ADV, filed by Scudder pursuant to the Advisers Act (SEC File No.
801- 252).
Item 28(e). Business and Other Connections of Investment Sub-Advisor -- Janus
Capital Corporation
Janus Capital Corporation ("Janus") is an investment advisor
registered under the Advisers Act, and acts as investment advisor for registered
investment companies. Janus provides a variety of investment management and
investment advisory services.
The list required by this Item 28 of officers and directors of
Janus, together with any information as to any other business, profession,
vocation or employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to
<PAGE> 38
Schedules A and D of Form ADV, filed by Janus pursuant to the Advisers Act (SEC
File No. 801- 13991).
Item 28(f). Business and Other Connections of Investment Sub-Advisor --
BlackRock Financial Management, Inc.
BlackRock Financial Management, Inc. ("BlackRock") is an
investment advisor registered under the Advisers Act, and acts as investment
advisor for registered investment companies and foreign investment companies.
BlackRock, and its affiliates, provide a variety of trust, investment management
and investment advisory services.
The list required by this Item 28 of officers and directors of
BlackRock, together with information as to any other business, profession,
vocation or employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to Schedules A
and D of Form ADV, filed by BlackRock, pursuant to the Advisers Act (SEC File
No. 801-32183).
Item 28(g). Business and Other Connections of Investment Sub-Advisor --
Warburg Pincus Asset Management, Inc.
Warburg Pincus Asset Management, Inc. ("Warburg") is an
investment advisor registered under the Advisers Act, and acts as investment
advisor for investment companies, employee benefit plans, endowment funds,
foundations and other institutions and individuals.
The list required by this Item 28 of officers and directors of
Warburg, together with information as to any other business, profession,
vocation or employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to Schedules A
and D of Form ADV, filed by Warburg, pursuant to the Advisers Act (SEC File No.
801-07321).
Item 29. Principal Underwriter
(a) Sierra Investment Services Corporation ("Sierra
Services"), the Distributor of the Trust, currently acts as distributor for the
Sierra Trust Funds.
(b) The information required by this Item 29 with respect to each
director and officer of Sierra Services is incorporated by reference to Schedule
A of Form BD filed by Sierra Services pursuant to the Securities Exchange Act of
1934 (SEC File No. 8-45144).
(c) Not Applicable.
Item 30. Location of Accounts and Records
(1) The Sierra Variable Trust
9301 Corbin Avenue
Northridge, California 91324
<PAGE> 39
(declaration and agreement of trust and by-laws)
(2) Sierra Investment Advisors Corporation 9301
Corbin Avenue Northridge, California 91324
(with respect to their services as investment
advisor)
(3) Sierra Investment Services Corporation 9301
Corbin Avenue Northridge, California 91324
(with respect to their services as distributor)
(4) Sierra Fund Administration Corporation
9301 Corbin Avenue
Northridge, California 91324
(with respect to their services as
administrator, shareholder servicing agent and
transfer agent)
(5) First Data Investor Services Group, Inc.
One Exchange Place
53 State Street - Mail Zone BOS-873
Boston, MA 02109-2873
(with respect to their services as investment
sub-administrator)
(6) First Data Investor Services Group, Inc.
4400 Computer Drive
Westboro, MA 01581
(with respect to their services as Transfer
Agent)
(7) Boston Safe Deposit and Trust Company One
Boston Place Boston, Massachusetts 02108 (with
respect to their services as custodian)
(8) J.P. Morgan Investment Management Inc.
522 Fifth Avenue
New York, New York 10036
(with respect to their services as investment
sub-advisor)
(9) TCW Funds Management, Inc.
865 S. Figueroa Street, Suite 1800
Los Angeles, California 90017
(with respect to their services as investment
sub-advisor)
(10) Scudder, Stevens & Clark, Inc.
Two International Place
Boston, Massachusetts 02110
<PAGE> 40
(with respect to their services as investment
sub-advisor)
(11) Janus Capital Corporation
100 Fillmore Street, Suite 300
Denver, Colorado 80206
(with respect to their services as investment
sub-advisor)
(12) BlackRock Financial Management, Inc.
345 Park Avenue, 30th Floor
New York, New York 10154
(with respect to their services as investment
sub-advisor)
(13) Warburg Pincus Asset Management, Inc.
466 Lexington Avenue
New York, New York 10017-3147
(with respect to their services as investment
sub-advisor)
(14) Morgan, Lewis & Bockius LLP 2000 One Logan
Square Philadelphia, Pennsylvania 19103
(with respect to their services as counsel)
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest annual report to
Shareholders, upon request and without charge.
<PAGE> 41
**********
NOTICE
**********
A copy of the Agreement and Declaration of Trust of The Sierra
Variable Trust (the "Trust") is on file with the Secretary of State of the
Commonwealth of Massachusetts and notice is hereby given that this Registration
Statement has been executed on behalf of the Trust by an officer of the Trust as
an officer and by its Trustees as trustees and not individually and the
obligations of or arising out of this Registration Statement are not binding
upon any of the Trustees, officers or shareholders individually but are binding
only upon the assets and property of the Trust.
<PAGE> 42
EXHIBIT INDEX
<TABLE>
<CAPTION>
EDGAR
Exhibit Exhibit
No. No. Description
- ------- ------- -----------
<S> <C> <C>
1(a) Agreement and Declaration of Trust, dated January 29, 1993, originally filed as exhibit to
Registration Statement on Form N-1A February 2, 1993, is incorporated by reference to
Post-Effective Amendment No. 7 filed on February 28, 1997.
1(b)-1 Amendment No. 1 to the Trust's Agreement and Declaration of Trust, dated April
27, 1993, originally filed as an exhibit to Post-Effective Amendment No. 1
October 13, 1993, is incorporated by reference to Post-Effective Amendment No.
7 filed on February 28, 1997.
1(b)-2 Amendment No. 2 to the Trust's Agreement and Declaration of Trust, dated
September 22, 1993, originally filed as an exhibit to Post-Effective Amendment
No. 1 October 13, 1993, is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
1(c)-1 Establishment and Designation of Series of Shares of Beneficial Interest, dated April 27, 1993,
with respect to the Global Money, Short Term Global Government, U.S. Government, Corporate
Income, Growth and International Growth Funds, originally filed as an exhibit to Post-Effective
Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7
filed on February 28, 1997.
1(c)-2 Establishment and Designation of Series of Shares of Beneficial Interest, dated February 3, 1995,
with respect to the Short Term High Quality Bond, Growth and Income and Emerging Growth Funds,
originally filed as an exhibit to Post- Effective Amendment No. 3 February 10, 1995, is
incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997.
1(c)-3 Establishment and Designation of Series of Shares of Beneficial Interest, dated January 23, 1997
with respect to the Income, Value, Balanced, Growth and Capital Growth Portfolios is
incorporated by reference to Post-Effective Amendment No. 7 filed on February 28, 1997
2 By-Laws of the Trust, originally filed as exhibit to Registration Statement on Form N-1A
February 2, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed
on February 28, 1997.
3 Not Applicable.
4 Not Applicable.
5(a)-1 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Investment Advisors
Corporation ("Sierra Advisors") with respect to the Global Money Fund, originally filed as an
exhibit to Post-Effective Amendment No. 1 October 13, 1993, is incorporated by reference to
Post-Effective Amendment No. 7 filed on February 28, 1997.
</TABLE>
<PAGE> 43
<TABLE>
<S> <C> <C>
5(a)-2 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with
respect to the International Growth Fund, originally filed as an exhibit to Post-Effective
Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7
filed on February 28, 1997.
5(a)-3 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with
respect to the U.S. Government Fund, originally filed as an exhibit to Post-Effective Amendment
No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed
on February 28, 1997.
5(a)-4 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with
respect to the Corporate Income Fund, originally filed as an exhibit to Post-Effective Amendment
No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed
on February 28, 1997.
5(a)-5 Management Agreement , dated as of April 8, 1993, between the Trust and Sierra Advisors with
respect to the short Term Global Government Fund, originally filed as an exhibit to Post-Effective
Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7
filed on February 28, 1997.
5(a)-6 Management Agreement, dated as of April 8, 1993, between the Trust and Sierra Advisors with
respect to the Growth Fund, originally filed as an exhibit to Post- Effective Amendment No. 1
October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed on February
28, 1997.
5(a)-7 Form of Management Agreement between the Trust and Sierra Advisors with respect to the Short
Term High Quality Bond, Growth and Income and Emerging Growth Funds, was filed as an exhibit to
Post-Effective Amendment No. 1 on October 13, 1993.
(Replaced by Exhibits 5(a)-9, 5(a)-10, 5(a)-11)
5(a)-8 Investment Advisory Agreement dated May 1, 1997 between the Trust and Sierra Services is
incorporated by reference to Post-Effective Amendment No. 9 filed on April 30, 1997.
5(a)-9 Management Agreement, dated January 1, 1994, between the Trust and Sierra Advisors, with
respect to the Short Term High Quality Bond Fund, is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
5(a)-10 Management Agreement, dated January 1, 1994, between the Trust and Sierra Advisors, with
respect to the Growth and Income Fund, is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
5(a)-11 Management Agreement, dated January 1, 1994, between the Trust and Sierra Advisors, with
respect to the Emerging Growth Fund, is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
5(b)-1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and
J.P. Morgan Investment Management Inc. ("J.P. Morgan") with respect to the
Global Money Fund, originally filed as an exhibit to Post-Effective Amendment
No. 1 October 13, 1993, is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
</TABLE>
<PAGE> 44
<TABLE>
<S> <C> <C>
5(b)-2.1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and J.P. Morgan with
respect to the International Growth Fund, was filed as Exhibit 5(b)-2 to Post-Effective
Amendment No. 1 on October 13, 1993. (no longerin effect)
5(b)-2.2 Sub-Adviser Agreement, dated as of April 8, 1996, between Sierra Advisors and Warburg, Pincus
Counsellors, Inc. ("Warburg") with respect to the International Growth Fund, is incorporated by
reference to Exhibit 5(b)-2 of Post-Effective Amendment No. 5 filed on April 26, 1996.
5(b)-3.1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and
Van Kampen Merritt Management Inc. with respect to the U.S. Government Fund,
was filed as Exhibit 5(b)-3 to Post-Effective Amendment No. 1 on October 13,
1993. (no longer in effect)
5(b)-3.2 Sub-Adviser Agreement, dated as of February 28, 1995 between Sierra Advisors and BlackRock
Financial Management, LP. with respect to the U.S. Government Fund is incorporated by reference
to Post-Effective Amendment No. 7 filed on February 28, 1997.
5(b)-4 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and TCW Funds Management,
Inc. with respect to the Corporate Income Fund, originally filed as an exhibit to Post-Effective
Amendment No. 1 October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7
filed on February 28, 1997.
5(b)-5 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and Scudder, Stevens &
Clark, Inc. ("Scudder") with respect to the Short Term Global Government Fund, originally filed as
an exhibit to Post-Effective Amendment No. 1 October 13, 1993, is incorporated by reference to
Post-Effective Amendment No. 7 filed on February 28, 1997.
5(b)-6.1 Sub-Adviser Agreement, dated as of April 8, 1993, between Sierra Advisors and Janus Capital
Corporation ("Janus") with respect to the Growth Fund, was filed as Exhibit 5(b)-6 to
Post-Effective Amendment No. 1 on October 13, 1993. (no longer in effect)
5(b)-6.2 Amended and Restated Sub-Adviser Agreement between Sierra Advisors and Janus with respect to
the Growth Fund, originally filed as an exhibit to Post- Effective Amendment No. 2 on April 22,
1994, is incorporated by reference to Exhibit 5(b)-6B of Post-Effective No. 7 filed on February
28, 1997.
5(b)-7 Sub-Adviser Agreement, dated as of January 1, 1994, between Sierra Advisors and J.P. Morgan
with respect to the Growth and Income Fund is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
5(b)-8 Sub-Adviser Agreement, dated as of January 1, 1994, between Sierra Advisors and Scudder with
respect to the Short Term High Quality Bond Fund is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
5(b)-9 Sub-Adviser Agreement, dated as of January 1, 1994, between Sierra Advisors and Janus with
respect to the Emerging Growth Fund is incorporated by reference to Post-Effective
Amendment No. 7 filed on February 28, 1997.
</TABLE>
<PAGE> 45
<TABLE>
<S> <C> <C>
6(a) Distribution Agreement, dated April 19, 1993, between the Trust and Sierra Investment Services
Corporation ("Sierra Services"), originally filed as an exhibit to Post-Effective Amendment No. 1
October 13, 1993, is incorporated by reference to Post-Effective Amendment No. 7 filed on February
28, 1997.
6(b)-1 Participation Agreement, regarding Sierra Advantage among the Trust, Sierra Advisors,
Sierra Services, American General Life Insurance Company ("American General") and American General
Securities Incorporated ("American General Securities"), dated as of may 3, 1993, originally
filed as an exhibit to Post- Effective Amendment No. 2 on April 22, 1994, is incorporated by
reference to Exhibit 6(b) of Post-Effective No. 7 filed on February 28, 1997.
6(b)-2 Form of First Amendment to Participation Agreement dated as of May 3, 1993 is incorporated
by reference to Post-Effective Amendment No. 9 filed on April 30, 1997.
7 Not Applicable.
8(a)-1 Custody Agreement, dated as of January 1, 1996, between the Trust and Boston Safe Deposit & Trust
Company is incorporated by reference to Exhibit 8(a) of Post-Effective Amendment No. 7 filed on
February 28, 1997.
8(a)-2 Schedules A and C, as amended and supplemented May 1, 1997, to Custody Agreement (Exhibit 8(a)-1
above) dated January 1, 1996 is incorporated by reference to Post-Effective Amendment No. 9 filed
on April 30, 1997.
8(b) Transfer Agency and Services Agreement, dated as of July 1, 1996, between the Trust and First Data
Investor Services Group is incorporated by reference to Post-Effective Amendment No. 7 filed
on February 28, 1997.
9(a)-1 Administration Agreement, dated April 19, 1993, between the Trust and Sierra Fund Administration
Corporation ("Sierra Administration") was filed as Exhibit 9(a) to Post-Effective Amendment No. 1
on October 13, 1993.
9(a)-2 Administration Agreement, dated as of July 1, 1996, between the Trust and Sierra Administration
is incorporated by reference to Exhibit 9(a) of Post- Effective Amendment No. 7 filed on February
28, 1997.
9(a)-3 Form of Administration Agreement dated May 1, 1997 between the Trust and Sierra Administration
is incorporated by reference to Post-Effective Amendment No. 9 filed on April 30, 1997.
9(b)-1 Sub-Administration Agreement, dated April 19, 1993, between Sierra Administration and The
Boston Company Advisors, Inc was filed as an Exhibit 9(b) to Post-Effective Amendment No. 1 on
October 13, 1993.
9(b)-2 Form of Sub-Administration Agreement between Sierra Administration and First
Data Investor Services Group, Inc. is incorporated by reference to Post-Effective
Amendment No. 9 filed on April 30, 1997.
10 Consent and Opinion of Counsel with Rule 24f-2 Notice filed with the Securities
and Exchange Commission on February 24, 1997.
</TABLE>
<PAGE> 46
<TABLE>
<S> <C> <C>
11(a)-1 Powers of Attorney with respect to Registration Statements and Amendments thereto signed by the
following persons in their capacities as Trustees and, where applicable, officers of the Trust:
David E. Anderson, Arthur H. Bernstein, F. Brian Cerini, Edmond R. Davis, Alfred E. Osborne, Jr.,
and Keith B. Pipes, originally filed as an exhibit to Pre-Effective Amendment No. 1 on March
29, 1993, is incorporated by reference to Post-Effective Amendment No. 7 on February 28, 1997.
11(a)-2 Power of Attorney with respect to Registration Statements and Amendments thereto signed by the
following person in his capacity as Trustee: John W. English, originally filed as an exhibit to
Post-Effective Amendment No. 3 on February 10, 1995, is incorporated by reference to
Post-Effective Amendment No. 7 filed on February 28, 1997.
11(b) Amended and Restated Agreement Concerning Allocation of Fidelity Bond Premiums and Recovery, dated
February 14, 1996, among the Trust, the Sierra Trust Funds and the Sierra Prime Income Fund is
incorporated by reference to Post-Effective Amendment No. 5 filed on April 26, 1996.
11(c) Amended and Restated Agreement Concerning Allocation of Joint Liability
(Errors and Omissions) Insurance Policy Premiums, dated February 14, 1996,
among the Trust, the Sierra Trust Funds and the Sierra Prime Income Fund is
incorporated by reference to Post-Effective Amendment No. 5 filed on April 26,
1996.
11(d) Indemnification Agreement, dated as of May 3, 1993, among Sierra Advisors,
Sierra Services, American General, and American General Securities, was filed as
an exhibit to Post-Effective Amendment No. 1 on October 13, 1993.
11(e) Consent of Independent Accountants *
12 Not Applicable.
13 Not Applicable.
14 Not Applicable.
15 Not Applicable.
16(a) Certain Performance Data relating to the Funds, originally filed as an exhibit to
Post-Effective Amendment No. 2 on April 22, 1994, is incorporated by reference
to Post-Effective No. 7 filed on February 28, 1997.
17 Not Applicable
18 Not Applicable
19 Not Applicable
20 Not Applicable
21 Not Applicable
22 Not Applicable
23 Not Applicable
</TABLE>
<PAGE> 47
<TABLE>
<S> <C> <C>
24 Not Applicable
25 Not Applicable
26 Not Applicable
EX-99.B 27 Financial Data Schedules.
</TABLE>
- ----------
* To be filed by amendment.
<PAGE> 48
Securities Act File No. 33-57732
Investment Company Act File No. 811-7462
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / /
---
PRE-EFFECTIVE AMENDMENT NO. / /
POST-EFFECTIVE AMENDMENT NO. 10 / X /
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 / /
---
AMENDMENT NO. 11 / X /
The Sierra Variable Trust
(Exact Name of Registrant as Specified in Charter)
-----------------------------------
EXHIBITS
-----------------------------------
<PAGE> 49
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended (the
"1933 Act"), and the Investment Company Act of 1940, as amended, the Registrant
has duly caused this Post-Effective Amendment No. 10 to the Registrant's
Registration Statement File No. 33-57732 to be signed on its behalf by the
undersigned, thereto duly authorized, in the City of Northridge and State of
California on the 1st day of December, 1997.
THE SIERRA VARIABLE TRUST
By: /s/ Keith B. Pipes
--------------------------
Keith B. Pipes
President
Pursuant to the requirements of the 1933 Act, as amended, this
Post-Effective Amendment No. 10 has been signed below by the following persons
in the capacities and on the date(s) indicated.
<TABLE>
<CAPTION>
Signature Title(s) Date
--------- -------- ----
<S> <C> <C>
/s/ Keith B. Pipes President December 1, 1997
---------------------------------
Keith B. Pipes
(Principal Executive Officer)
/s/ Craig M. Miller Treasurer and Chief December 1, 1997
--------------------------------- Financial Officer
Craig M. Miller
(Chief Financial Officer)
* Trustee December 1, 1997
---------------------------------
David E. Anderson
* Trustee December 1, 1997
---------------------------------
Arthur H. Bernstein
* Trustee December 1, 1997
---------------------------------
Edmond R. Davis
* Trustee December 1, 1997
---------------------------------
John W. English
* Trustee December 1, 1997
---------------------------------
Alfred E. Osborne, Jr., Ph.D.
*By: /s/Keith B. Pipes
---------------------------------
Keith B. Pipes
Attorney-In-Fact
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 01
<NAME> SIERRA VT GLOBAL MONEY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 32,453,100
<INVESTMENTS-AT-VALUE> 32,453,100
<RECEIVABLES> 338,704
<ASSETS-OTHER> 1,693
<OTHER-ITEMS-ASSETS> 6,338
<TOTAL-ASSETS> 32,799,835
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 170,842
<TOTAL-LIABILITIES> 170,842
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,609,859
<SHARES-COMMON-STOCK> 32,621,861
<SHARES-COMMON-PRIOR> 23,261,642
<ACCUMULATED-NII-CURRENT> 15,877
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,257
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 32,628,993
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 776,261
<OTHER-INCOME> 0
<EXPENSES-NET> 90,175
<NET-INVESTMENT-INCOME> 686,086
<REALIZED-GAINS-CURRENT> 3,257
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 689,343
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (686,086)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,904,748
<NUMBER-OF-SHARES-REDEEMED> (4,230,615)
<SHARES-REINVESTED> 686,086
<NET-CHANGE-IN-ASSETS> 9,363,476
<ACCUMULATED-NII-PRIOR> 15,877
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 69,518
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 119,278
<AVERAGE-NET-ASSETS> 28,037,633
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.02)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 02
<NAME> SIERRA VT GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 104,137,291
<INVESTMENTS-AT-VALUE> 117,911,752
<RECEIVABLES> 613,838
<ASSETS-OTHER> 7,901
<OTHER-ITEMS-ASSETS> 106,879
<TOTAL-ASSETS> 118,640,370
<PAYABLE-FOR-SECURITIES> 981,872
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 153,835
<TOTAL-LIABILITIES> 1,135,707
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 98,156,121
<SHARES-COMMON-STOCK> 8,021,687
<SHARES-COMMON-PRIOR> 7,247,908
<ACCUMULATED-NII-CURRENT> 285,180
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,169,428
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,893,934
<NET-ASSETS> 117,504,663
<DIVIDEND-INCOME> 431,020
<INTEREST-INCOME> 513,516
<OTHER-INCOME> 0
<EXPENSES-NET> 665,774
<NET-INVESTMENT-INCOME> 278,762
<REALIZED-GAINS-CURRENT> 5,856,822
<APPREC-INCREASE-CURRENT> 205,834
<NET-CHANGE-FROM-OPS> 6,341,418
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (138,925)
<DISTRIBUTIONS-OF-GAINS> (15,601,297)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 108,791
<NUMBER-OF-SHARES-REDEEMED> (416,814)
<SHARES-REINVESTED> 1,081,802
<NET-CHANGE-IN-ASSETS> 1,440,879
<ACCUMULATED-NII-PRIOR> 145,343
<ACCUMULATED-GAINS-PRIOR> 14,913,903
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 504,338
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 668,312
<AVERAGE-NET-ASSETS> 114,089,775
<PER-SHARE-NAV-BEGIN> 16.01
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 0.87
<PER-SHARE-DIVIDEND> (0.02)
<PER-SHARE-DISTRIBUTIONS> (2.25)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.65
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 03
<NAME> SIERRA VT INTERNATIONAL GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 55,652,849
<INVESTMENTS-AT-VALUE> 62,264,109
<RECEIVABLES> 2,404,894
<ASSETS-OTHER> 4,321
<OTHER-ITEMS-ASSETS> 47,789
<TOTAL-ASSETS> 64,721,113
<PAYABLE-FOR-SECURITIES> 704,037
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 100,654
<TOTAL-LIABILITIES> 804,691
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,898,131
<SHARES-COMMON-STOCK> 4,483,374
<SHARES-COMMON-PRIOR> 4,790,516
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (215,386)
<ACCUMULATED-NET-GAINS> 3,678,946
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,554,731
<NET-ASSETS> 63,916,422
<DIVIDEND-INCOME> 612,745
<INTEREST-INCOME> 91,438
<OTHER-INCOME> 0
<EXPENSES-NET> 411,025
<NET-INVESTMENT-INCOME> 293,158
<REALIZED-GAINS-CURRENT> 3,661,843
<APPREC-INCREASE-CURRENT> 3,667,794
<NET-CHANGE-FROM-OPS> 7,622,795
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,127,686)
<DISTRIBUTIONS-OF-GAINS> (1,036,604)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 72,838
<NUMBER-OF-SHARES-REDEEMED> (530,907)
<SHARES-REINVESTED> 150,927
<NET-CHANGE-IN-ASSETS> 1,561,906
<ACCUMULATED-NII-PRIOR> 619,142
<ACCUMULATED-GAINS-PRIOR> 1,053,707
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 286,421
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 411,582
<AVERAGE-NET-ASSETS> 62,069,261
<PER-SHARE-NAV-BEGIN> 13.02
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 1.66
<PER-SHARE-DIVIDEND> (0.26)
<PER-SHARE-DISTRIBUTIONS> (0.24)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.26
<EXPENSE-RATIO> 1.34
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 04
<NAME> SIERRA VT U.S. GOVERNMENT FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 70,102,567
<INVESTMENTS-AT-VALUE> 71,125,567
<RECEIVABLES> 2,084,937
<ASSETS-OTHER> 4,505
<OTHER-ITEMS-ASSETS> 52,730
<TOTAL-ASSETS> 73,267,739
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 12,098,373
<TOTAL-LIABILITIES> 12,098,373
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 62,445,251
<SHARES-COMMON-STOCK> 6,289,577
<SHARES-COMMON-PRIOR> 6,815,332
<ACCUMULATED-NII-CURRENT> 12,350
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,157,301)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 869,066
<NET-ASSETS> 61,169,366
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,487,995
<OTHER-INCOME> 41,640
<EXPENSES-NET> 493,903
<NET-INVESTMENT-INCOME> 2,035,732
<REALIZED-GAINS-CURRENT> 175,105
<APPREC-INCREASE-CURRENT> (487,874)
<NET-CHANGE-FROM-OPS> 1,722,963
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,048,622)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 59,114
<NUMBER-OF-SHARES-REDEEMED> (796,906)
<SHARES-REINVESTED> 212,037
<NET-CHANGE-IN-ASSETS> (5,393,929)
<ACCUMULATED-NII-PRIOR> 25,240
<ACCUMULATED-GAINS-PRIOR> (2,332,406)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 189,849
<INTEREST-EXPENSE> 210,651
<GROSS-EXPENSE> 495,787
<AVERAGE-NET-ASSETS> 63,807,314
<PER-SHARE-NAV-BEGIN> 9.77
<PER-SHARE-NII> 0.32
<PER-SHARE-GAIN-APPREC> (0.04)
<PER-SHARE-DIVIDEND> (0.32)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.73
<EXPENSE-RATIO> 0.91
<AVG-DEBT-OUTSTANDING> 12,460,541
<AVG-DEBT-PER-SHARE> 1.90
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 05
<NAME> SIERRA VT CORPORATE INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 48,970,652
<INVESTMENTS-AT-VALUE> 49,227,580
<RECEIVABLES> 947,375
<ASSETS-OTHER> 4,325
<OTHER-ITEMS-ASSETS> 5,188
<TOTAL-ASSETS> 50,184,468
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 61,117
<TOTAL-LIABILITIES> 61,117
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,649,161
<SHARES-COMMON-STOCK> 5,158,856
<SHARES-COMMON-PRIOR> 6,095,560
<ACCUMULATED-NII-CURRENT> 8,329
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,791,067)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 256,928
<NET-ASSETS> 50,123,351
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,165,923
<OTHER-INCOME> 22,031
<EXPENSES-NET> 258,939
<NET-INVESTMENT-INCOME> 1,929,015
<REALIZED-GAINS-CURRENT> (547,744)
<APPREC-INCREASE-CURRENT> (206,876)
<NET-CHANGE-FROM-OPS> 1,174,395
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,976,498)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26,434
<NUMBER-OF-SHARES-REDEEMED> (1,168,728)
<SHARES-REINVESTED> 205,590
<NET-CHANGE-IN-ASSETS> (9,759,849)
<ACCUMULATED-NII-PRIOR> 55,812
<ACCUMULATED-GAINS-PRIOR> (2,243,323)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 177,498
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 258,956
<AVERAGE-NET-ASSETS> 55,067,329
<PER-SHARE-NAV-BEGIN> 9.82
<PER-SHARE-NII> 0.35
<PER-SHARE-GAIN-APPREC> (0.09)
<PER-SHARE-DIVIDEND> (0.36)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.72
<EXPENSE-RATIO> 0.95
<AVG-DEBT-OUTSTANDING> 1,143,683
<AVG-DEBT-PER-SHARE> 0.20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 06
<NAME> SIERRA VT ST GLOBAL GOVERNMENT FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 19,809,397
<INVESTMENTS-AT-VALUE> 19,182,493
<RECEIVABLES> 588,104
<ASSETS-OTHER> 1,727
<OTHER-ITEMS-ASSETS> 60,621
<TOTAL-ASSETS> 19,832,945
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 74,408
<TOTAL-LIABILITIES> 74,408
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,817,375
<SHARES-COMMON-STOCK> 8,150,482
<SHARES-COMMON-PRIOR> 8,843,198
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (496,268)
<ACCUMULATED-NET-GAINS> 886,397
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (448,967)
<NET-ASSETS> 19,758,537
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 745,361
<OTHER-INCOME> 0
<EXPENSES-NET> 129,465
<NET-INVESTMENT-INCOME> 615,896
<REALIZED-GAINS-CURRENT> 1,068,538
<APPREC-INCREASE-CURRENT> (1,214,683)
<NET-CHANGE-FROM-OPS> 469,751
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (903,638)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 128,422
<NUMBER-OF-SHARES-REDEEMED> (1,194,542)
<SHARES-REINVESTED> 373,404
<NET-CHANGE-IN-ASSETS> (2,151,848)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (182,141)
<OVERDISTRIB-NII-PRIOR> (208,526)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 77,203
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 129,702
<AVERAGE-NET-ASSETS> 20,758,013
<PER-SHARE-NAV-BEGIN> 2.48
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> (0.02)
<PER-SHARE-DIVIDEND> (0.11)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 2.42
<EXPENSE-RATIO> 1.26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 07
<NAME> SIERRA VT EMERGING GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 35,953,104
<INVESTMENTS-AT-VALUE> 46,273,656
<RECEIVABLES> 815,027
<ASSETS-OTHER> 3,723
<OTHER-ITEMS-ASSETS> 90,562
<TOTAL-ASSETS> 47,182,968
<PAYABLE-FOR-SECURITIES> 168,108
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 143,177
<TOTAL-LIABILITIES> 311,285
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 36,157,888
<SHARES-COMMON-STOCK> 3,269,393
<SHARES-COMMON-PRIOR> 3,801,138
<ACCUMULATED-NII-CURRENT> 27,688
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 436,289
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,249,818
<NET-ASSETS> 46,871,683
<DIVIDEND-INCOME> 53,694
<INTEREST-INCOME> 98,711
<OTHER-INCOME> 0
<EXPENSES-NET> 284,831
<NET-INVESTMENT-INCOME> (132,426)
<REALIZED-GAINS-CURRENT> 437,968
<APPREC-INCREASE-CURRENT> 386,815
<NET-CHANGE-FROM-OPS> 692,357
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (2,594,503)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 41,536
<NUMBER-OF-SHARES-REDEEMED> (755,351)
<SHARES-REINVESTED> 182,070
<NET-CHANGE-IN-ASSETS> (9,015,806)
<ACCUMULATED-NII-PRIOR> 160,114
<ACCUMULATED-GAINS-PRIOR> 2,592,824
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 207,622
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 285,954
<AVERAGE-NET-ASSETS> 47,786,476
<PER-SHARE-NAV-BEGIN> 14.70
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> 0.52
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.84)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.34
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 08
<NAME> SIERRA VT GROWTH AND INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 77,526,465
<INVESTMENTS-AT-VALUE> 90,886,377
<RECEIVABLES> 171,348
<ASSETS-OTHER> 4,289
<OTHER-ITEMS-ASSETS> 372
<TOTAL-ASSETS> 91,062,386
<PAYABLE-FOR-SECURITIES> 318,772
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 101,136
<TOTAL-LIABILITIES> 419,908
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 70,317,317
<SHARES-COMMON-STOCK> 5,854,745
<SHARES-COMMON-PRIOR> 4,370,788
<ACCUMULATED-NII-CURRENT> 189,591
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,775,658
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,359,912
<NET-ASSETS> 90,642,478
<DIVIDEND-INCOME> 549,517
<INTEREST-INCOME> 90,082
<OTHER-INCOME> 0
<EXPENSES-NET> 407,390
<NET-INVESTMENT-INCOME> 232,209
<REALIZED-GAINS-CURRENT> 6,809,480
<APPREC-INCREASE-CURRENT> 5,700,444
<NET-CHANGE-FROM-OPS> 12,742,133
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (539,740)
<DISTRIBUTIONS-OF-GAINS> (6,617,216)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,178,653
<NUMBER-OF-SHARES-REDEEMED> (154,950)
<SHARES-REINVESTED> 460,254
<NET-CHANGE-IN-ASSETS> 28,197,943
<ACCUMULATED-NII-PRIOR> 497,122
<ACCUMULATED-GAINS-PRIOR> 6,583,394
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 301,296
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 407,915
<AVERAGE-NET-ASSETS> 75,948,241
<PER-SHARE-NAV-BEGIN> 14.29
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 2.47
<PER-SHARE-DIVIDEND> (0.10)
<PER-SHARE-DISTRIBUTIONS> (1.23)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 15.48
<EXPENSE-RATIO> 1.08
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 09
<NAME> SIERRA VT SHORT TERM HIGH QUALITY BOND FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 12,014,856
<INVESTMENTS-AT-VALUE> 12,102,714
<RECEIVABLES> 106,105
<ASSETS-OTHER> 1,026
<OTHER-ITEMS-ASSETS> 8,710
<TOTAL-ASSETS> 12,218,555
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 28,312
<TOTAL-LIABILITIES> 28,312
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,532,530
<SHARES-COMMON-STOCK> 5,033,452
<SHARES-COMMON-PRIOR> 5,099,390
<ACCUMULATED-NII-CURRENT> 28,178
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (451,292)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 80,827
<NET-ASSETS> 12,190,243
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 431,307
<OTHER-INCOME> 0
<EXPENSES-NET> 60,844
<NET-INVESTMENT-INCOME> 370,463
<REALIZED-GAINS-CURRENT> (56,026)
<APPREC-INCREASE-CURRENT> (13,680)
<NET-CHANGE-FROM-OPS> 300,757
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (346,088)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 346,948
<NUMBER-OF-SHARES-REDEEMED> (555,897)
<SHARES-REINVESTED> 143,011
<NET-CHANGE-IN-ASSETS> (211,639)
<ACCUMULATED-NII-PRIOR> 3,803
<ACCUMULATED-GAINS-PRIOR> (395,266)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 30,451
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 66,842
<AVERAGE-NET-ASSETS> 12,281,413
<PER-SHARE-NAV-BEGIN> 2.43
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> (0.01)
<PER-SHARE-DIVIDEND> (0.07)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 2.42
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> SIERRA VT CAPITAL GROWTH PORTFOLIO
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 549,929
<INVESTMENTS-AT-VALUE> 537,320
<RECEIVABLES> 4,379
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 38,767
<TOTAL-ASSETS> 580,466
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,290
<TOTAL-LIABILITIES> 55,290
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 534,157
<SHARES-COMMON-STOCK> 49,475
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 430
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,198
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (12,609)
<NET-ASSETS> 525,176
<DIVIDEND-INCOME> 722
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 292
<NET-INVESTMENT-INCOME> 430
<REALIZED-GAINS-CURRENT> 3,198
<APPREC-INCREASE-CURRENT> (12,609)
<NET-CHANGE-FROM-OPS> (8,981)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 51,237
<NUMBER-OF-SHARES-REDEEMED> (1,762)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 525,176
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 85
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 19,837
<AVERAGE-NET-ASSETS> 207,210
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.59
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.61
<EXPENSE-RATIO> 0.34
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> SIERRA VT GROWTH PORTFOLIO
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 1,088,410
<INVESTMENTS-AT-VALUE> 1,056,836
<RECEIVABLES> 45,465
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 38,769
<TOTAL-ASSETS> 1,141,070
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,431
<TOTAL-LIABILITIES> 55,431
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,111,670
<SHARES-COMMON-STOCK> 104,192
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,916
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,627
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (31,574)
<NET-ASSETS> 1,085,639
<DIVIDEND-INCOME> 3,733
<INTEREST-INCOME> 14
<OTHER-INCOME> 0
<EXPENSES-NET> 831
<NET-INVESTMENT-INCOME> 2,916
<REALIZED-GAINS-CURRENT> 2,627
<APPREC-INCREASE-CURRENT> (31,574)
<NET-CHANGE-FROM-OPS> (26,031)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 104,192
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,085,639
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 241
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,498
<AVERAGE-NET-ASSETS> 585,943
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 0.38
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.42
<EXPENSE-RATIO> 0.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> SIERRA VT BALANCED PORTFOLIO
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 2,100,056
<INVESTMENTS-AT-VALUE> 2,066,529
<RECEIVABLES> 17,419
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 70,131
<TOTAL-ASSETS> 2,154,079
<PAYABLE-FOR-SECURITIES> 30,364
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,676
<TOTAL-LIABILITIES> 86,040
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,077,060
<SHARES-COMMON-STOCK> 199,095
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 11,163
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 13,343
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (33,527)
<NET-ASSETS> 2,068,039
<DIVIDEND-INCOME> 12,721
<INTEREST-INCOME> 164
<OTHER-INCOME> 0
<EXPENSES-NET> 1,722
<NET-INVESTMENT-INCOME> 11,163
<REALIZED-GAINS-CURRENT> 13,343
<APPREC-INCREASE-CURRENT> (33,527)
<NET-CHANGE-FROM-OPS> (9,021)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 203,993
<NUMBER-OF-SHARES-REDEEMED> (4,898)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,068,039
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 498
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22,299
<AVERAGE-NET-ASSETS> 1,211,461
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 0.31
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.39
<EXPENSE-RATIO> 0.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
