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Previous: JPM SERIES TRUST II, NSAR-A, 1997-08-28 |
Next: MORGAN STANLEY AFRICA INVESTMENT FUND INC, NT-NSAR, 1997-08-28 |
[GRAPHIC OMITTED]
NORTHSTAR
VARIABLE ACCOUNT
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
JUNE 30, 1997
(UNAUDITED)
This report has been prepared to provide information to owners of Northstar
Variable Account Contracts. If it is used for any other purpose, it must be
accompanied or preceded by a current Northstar Variable Account Prospectus which
discloses any charges and other important information about the Account,
together with the current Prospectuses for the underlying Funds.
<TABLE>
<CAPTION>
NORTHSTAR VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
(In Thousands, Except Share and Unit Data)
(Unaudited)
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S
ASSETS: INCOME AND NORTHSTAR'S MULTI-SECTOR HIGH YIELD
- ------ GROWTH FUND GROWTH FUND BOND FUND BOND FUND
----------- ----------- --------- ---------
Investments in mutual funds at market value:
NORTHSTAR'S:
<S> <C> <C> <C> <C>
Income and Growth Fund
575,000 shares (cost $6,561) $7,216
Growth Fund
188,822 shares (cost $2,646) $2,821
Multi-Sector Bond Fund
130,923 shares (cost $668) $683
High Yield Bond Fund
545,500 shares (cost $2,817) $2,880
FIDELITY'S VIP AND VIP II:
Money Market Portfolio
219,794 shares (cost $220)
Overseas Portfolio
4,806 shares (cost $86)
Asset Manager Portfolio
3,250 shares (cost $51)
Index 500 Portfolio
1,716 shares (cost $149)
---------- ---------- ---------- ----------
Total Assets $7,216 $2,821 $683 $2,880
========== ========== ========== ==========
LIABILITIES AND CONTRACT
OWNERS' EQUITY:
Due to (from) ReliaStar Life
Insurance Company for contract charges $9 $3 $- ($2)
Contract Owners' Equity 7,207 $2,818 683 2,882
---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $7,216 $2,821 $683 $2,880
=========== =========== ========== ===========
Units Outstanding: 491,108.626 174,016.811 51,860.448 209,067.230
Net Asset Value per Unit:
Northstar Variable Account
Tax Qualified $14.675828 $16.191264 $13.178536 $13.785495
Non-Tax Qualified $14.675828 $16.191264 $13.178536 $13.785495
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S
FIDELITY'S VIP FIDELITY'S VIP VIP II VIP II
MONEY MARKET OVERSEAS ASSET MANAGER INDEX 500
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
--------- --------- --------- --------- -----
<S> <C> <C> <C> <C>
$7,216
2,821
683
2,880
$220 220
$96 96
$54 54
$178 178
---------- ---------- ---------- ---------- ----------
$220 $96 $54 $178 $14,148
$- $- $- $- $10
220 96 54 178 14,138
---------- ---------- ---------- ---------- ----------
$220 $96 $54 $178 $14,148
========== ========== ========== ========== ===========
20,130.046 6,996.896 3,873.705 10,195.815 967,249.577
$10.903987 $13.751092 $13.907807 $17.420669
$10.903987 $13.751092 $13.907807 $17.420669
The accompanying notes are an integral part of the financial statements.
</TABLE>
NORTHSTAR VARIABLE ACCOUNT
STATEMENT OF OPERATIONS AND
CHANGES IN CONTRACT OWNERS' EQUITY
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
PERIOD ENDED YEAR ENDED YEAR ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
1997 1996 1995
--------------- ----------- ------------
<S> <C> <C> <C>
Net investment income:
Reinvested dividend income ........................................ $ 287 $ 399 $ 226
Reinvested capital gains .......................................... 12 441 102
Administrative expenses ........................................... (111) (138) (60)
-------- -------- --------
Net investment income
and capital gains ..................................... 188 702 268
-------- -------- --------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares .................................. 98 219 44
Increase in unrealized
appreciation of investments ................................. 556 133 286
-------- -------- --------
Net realized and unrealized gains ........................... 654 352 330
-------- -------- --------
Net additions from operations ......................... 842 1,054 598
-------- -------- --------
Contract Owners' transactions:
Net purchase payments ............................................. 2,362 4,856 4,461
Surrenders ........................................................ (564) (558) (268)
Transfers between Sub-Accounts
and Fixed Account ........................................... -- -- --
Annuity payments .................................................. -- -- --
Transfers to (from) required reserves ............................. -- -- --
-------- -------- --------
Net additions for Contract
Owners' transactions .................................. 1,798 4,298 4,193
-------- -------- --------
Net additions for the period .................... 2,640 5,352 4,791
Contract Owners' Equity, beginning of the year ......................... 11,498 6,146 1,355
-------- -------- --------
Contract Owners' Equity, end of the period ............................. $ 14,138 $ 11,498 $ 6,146
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
NORTHSTAR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND CONTRACTS:
Northstar Variable Account (the "Account") is a separate account of ReliaStar
Life Insurance Company ("ReliaStar Life"), a wholly-owned subsidiary of
ReliaStar Financial Corp. (formerly The NWNL Companies, Inc.). The Account
commenced operations on May 6, 1994 and is registered as a unit investment
trust under the Investment Company Act of 1940.
Purchase payments received under the contracts are allocated to Sub-Accounts
of the Account, each of which is invested in one of the Funds listed below
during the period.
<TABLE>
<CAPTION>
<S> <C>
NORTHSTAR VARIABLE TRUST FUNDS: FIDELITY'S VIP AND VIP II:
Income and Growth Fund Money Market Portfolio
Growth Fund Overseas Portfolio
Multi-Sector Bond Fund Asset Manager Portfolio
High Yield Bond Fund Index 500 Portfolio
</TABLE>
Northstar Investment Management Corporation, an affiliate of ReliaStar Life,
is the investment adviser for the four Funds of the Northstar Variable Trust
and is paid fees for its services by the Northstar Funds. Fidelity Management
& Research Company is the investment adviser for Fidelity's Variable
Insurance Products Fund (VIP) and Variable Insurance Products Fund II (VIP
II) and is paid for its services by the VIP and VIP II Portfolios. On April
30, 1995, Sub-Accounts investing in VIP and VIP II Portfolios were made
available under the contracts.
SECURITIES VALUATION TRANSACTIONS AND RELATED INVESTMENT INCOME:
The market value of investments in the Sub-Accounts is based on the closing
net asset values of the Fund shares held at the end of the period. Investment
transactions are accounted for on the trade date (date the order to purchase
or redeem is executed) and dividend income and capital gain distributions are
recorded on the ex-dividend date. Net realized gains and losses on
redemptions of shares of the Funds are determined on the basis of specific
identification of Fund share costs.
VARIABLE ANNUITY RESERVES:
The amount of the reserves for contracts in the distribution period is
determined by actuarial assumptions which meet statutory requirements. Gains
or losses resulting from actual mortality experience, the full responsibility
for which is assumed by ReliaStar Life, are offset by transfers to (or from)
ReliaStar Life.
2. FEDERAL INCOME TAXES:
Under current tax law, the income, gains and losses from the separate account
investments are not taxable to either the Account or ReliaStar Life.
3. CONTRACT CHARGES:
No deduction is made for a sales charge from the purchase payments made for
the contracts. However, on certain surrenders, ReliaStar Life will deduct
from the contract value a surrender charge as set forth in the contract.
Certain charges are made by ReliaStar Life to Contract Owners' Variable
Accumulation Values in the Account in accordance with the terms of the
Contracts. These charges may include: an annual administrative/contract
charge of $35 from each contract on the anniversary date or at the time of
surrender, if surrender is at a time other than the anniversary date; a daily
administrative charge; and a daily charge for mortality and expense risk
assumed by ReliaStar Life.
Various states and other governmental units levy a premium tax on annuity
contracts issued by insurance companies. If the owner of a contract lives in
a state which levies such a tax, ReliaStar Life may deduct the amount of the
tax from the purchase payments received or the value of the contract at
annuitization.
4. INVESTMENTS:
The net realized gains on redemptions of fund shares for the period ended
June 30, 1997 and years ended December 31, 1996 and 1995 were as
follows, (in thousands):
<TABLE>
<CAPTION>
NORTHSTAR'S
INCOME AND
TOTAL GROWTH FUND
------------------------------------------------- -----------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions........ $940 $2,324 $1,461 $401 $750 $986
Cost............................. 842 2,105 1,417 344 649 954
--------- --------- --------- --------- --------- ---------
Net realized gains on
redemptions of fund shares.. $98 $219 $44 $57 $101 $32
========= ========= ========= ========= ======== ==========
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR'S
NORTHSTAR'S MULTI-SECTOR
GROWTH FUND BOND FUND
------------------------------------------------- ----------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$224 $431 $23 $28 $57 $271
195 365 20 27 52 267
--------- --------- --------- --------- --------- ---------
$29 $66 $ 3 $1 $5 $4
========= ========= ========= ========= ======== ==========
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR'S FIDELITY'S VIP
HIGH YIELD MONEY MARKET
BOND FUND PORTOFLIO
------------------------------------------------- ---------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions ......... $194 $798 $181 $86 $230 $-
Cost............................... 184 754 176 86 230 -
--------- --------- --------- --------- --------- ---------
Net realized gains on
redemptions of fund shares.. $10 $44 $5 $- $- $-
========= ========= ========= ========= ======== ==========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIP FIDELITY'S VIP II
OVERSEAS ASSET MANAGER
PORTFOLIO PORTFOLIO
------------------------------------------------------------------- -------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$1 $40 $- $1 $2 $-
1 39 - 1 2 -
--------- --------- --------- --------- --------- ---------
$- $1 $- $- $- $-
========= ========= ========= ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIP II
INDEX 500
PORTFOLIO
------------------------------------------------
Period ended Year ended Year ended
June 30, Dec. 31, Dec.31,
1997 1996 1995
------------- ------------ -------------
<S> <C> <C> <C>
Proceeds from redemptions .......... $5 $16 $-
Cost................................ 4 14 -
--------- --------- ---------
Net realized gains on
redemptions of fund shares... $1 $2 $-
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(Unaudited)
5. CONTRACT OWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account during the period ended June 30, 1997
and the years ended December 31, 1996 and 1995 were as follows:
NORTHSTAR'S
INCOME AND NORTHSTAR'S
GROWTH FUND GROWTH FUND
------------------------------------------------- -----------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the year... 416,758.235 301,285.181 100,955.441 150,737.332 27,043.488 8,738.734
Units purchased............ 92,684.470 136,809.182 272,482.821 27,109.954 77,198.087 16,561.980
Units redeemed............. (19,227.140) (15,930.192) (12,532.790) (6,551.704) (2,645.857) (1,662.223)
Units transferred between
Sub-Accounts and/or
Fixed Account .......... 893.061 (5,405.936) (59,620.291) 2,721.229 49,141.614 3,404.997
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the year......... 491,108.626 416,758.235 301,285.181 174,016.811 150,737.332 27,043.488
=========== =========== =========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
MULTI-SECTOR HIGH YIELD
BOND FUND BOND FUND
-------------------------------------------------- ----------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
52,943.821 37,703.818 15,492.534 182,653.068 149,292.389 8,985.149
758.785 16,708.518 34,047.693 40,414.879 94,192.813 83,081.624
(160.127) (1,348.523) (10.440) (13,776.993) (18,820.512) (10,401.395)
(1,682.031) (119.992) (11,825.969) (223.724) (42,011.622) 67,627.011
----------- ----------- ----------- ----------- ----------- -----------
51,860.448 52,943.821 37,703.818 209,067.230 182,653.068 149,292.389
========== ========== ========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIP FIDELITY'S VIP
MONEY MARKET OVERSEAS
PORTFOLIO PORTFOLIO
--------------------------------------------------- ----------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the year... 20,823.704 - - 5,473.449 - -
Units purchased ........... 7,108.994 41,631.286 - 799.272 6,491.723 -
Units redeemed ............ (2,070.951) (7,939.914) - (76.003) (12.797) -
Units transferred between
Sub-Accounts and/or
Fixed Account .......... (5,731.701) (12,867.668) - 800.178 (1,005.477) -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the year ........ 20,130.046 20,823.704 - 6,996.896 5,473.449 -
========== ========== =========== ========= ========= ===========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIP II FIDELITY'S VIP II
ASSET MANAGER INDEX 500
PORTFOLIO PORTFOLIO
--------------------------------------------------- ----------------------------------------------------
Period ended Year ended Year ended Period ended Year ended Year ended
June 30, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
1997 1996 1995 1997 1996 1995
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
3,425.419 - - 7,115.014 335.333 -
537.357 3,425.419 - 1,895.242 4,170.997 -
(89.071) - - (275.689) (13.694) -
- - - 1,461.248 2,622.378 335.333
----------- ----------- ----------- ----------- ----------- -----------
3,873.705 3,425.419 - 10,195.815 7,115.014 335.333
========= ========= ========== ========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(Unaudited)
6. COMBINING STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY.
Operations and changes in Contract Owners' equity for the period
ended June 30, 1997 were as follows (in thousands):
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S
INCOME AND NORTHSTAR'S MULTI-SECTOR HIGH YIELD
TOTAL GROWTH FUND GROWTH FUND BOND FUND BOND FUND
-------------- -------------- -------------- -------------- --------------
Net investment income:
<S> <C> <C> <C> <C> <C>
Reinvested dividend income $287 $118 $11 $29 $121
Reinvested capital gains ... 12 - - - -
Administrative expenses .... (111) (57) (23) (5) (21)
--------- --------- --------- --------- ---------
Net investment income
and capital gains .... 188 61 (12) 24 100
--------- --------- --------- --------- ---------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares 98 57 29 1 10
Increase (decrease) in unrealized
appreciation of investments 556 404 132 (5) (4)
--------- --------- --------- --------- ---------
Net realized and unrealized
gains (losses) ....... 654 461 161 (4) 6
--------- --------- --------- --------- ---------
Net additions
from operations 842 522 149 20 106
--------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments ...... 2,362 1,275 414 11 537
Surrenders ................. (564) (258) (94) (2) (183)
Transfers between Sub-Accounts
and/or Fixed Account .... - 13 42 (22) (3)
Annuity payments............ - - - - -
Transfers to (from)
required reserves......... - - - - -
--------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 1,798 1,030 362 (13) 351
--------- --------- --------- --------- ---------
Net additions (reductions)
for the period . 2,640 1,552 511 7 457
Contract Owners' Equity,
beginning of the year ...... 11,498 5,655 2,307 676 2,425
--------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period .......... $14,138 $7,207 $2,818 $683 $2,882
========= ========= ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIP FIDELITY'S VIP FIDELITY'S VIP II FIDELITY'S VIP II
MONEY MARKET OVERSEAS ASSET MANAGER INDEX 500
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- --------------
<S> <C> <C> <C>
$5 $1 $1 $1
- 5 4 3
(3) (1) - (1)
--------- --------- --------- ---------
2 5 5 3
--------- --------- --------- ---------
- - - 1
- 7 - 22
--------- --------- --------- ---------
- 7 - 23
--------- --------- --------- ---------
2 12 5 26
--------- --------- --------- ---------
78 10 7 30
(21) (1) (1) (4)
(62) 10 - 22
- - - -
- - - -
--------- --------- --------- ---------
(5) 19 6 48
--------- --------- --------- ---------
(3) 31 11 74
223 65 43 104
--------- --------- --------- ---------
$220 $96 $54 $178
========= ========= ======== ========
</TABLE>
NORTHSTAR VARIABLE ACCOUNT
20 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 55401
(612) 372-5507
45081b
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