<PAGE>
[LOGO]
T O U C H S T O N E
-------------------------------------------------------
TOUCHSTONE VARIABLE ANNUITY
-------------------------------------------------------
SELECT ADVISORS VARIABLE
INSURANCE TRUST
( EMERGING GROWTH PORTFOLIO
( INTERNATIONAL EQUITY PORTFOLIO
( BALANCED PORTFOLIO
( INCOME OPPORTUNITY PORTFOLIO
( STANDBY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
JUNE 30, 1996
<PAGE>
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS (84.2%)
<TABLE>
<C> <S> <C>
AIRLINES (2.0%)
1,600 America West Airlines Class B... $ 35,200
600 Continental Airlines, Inc. Class
B............................. 37,050
---------
72,250
---------
BANKING & FINANCE (2.1%)
1,550 First Security Corp............. 37,200
2,100 Glendale Federal Bank, FSB...... 38,063
---------
75,263
---------
BROADCAST & MEDIA (3.9%)
1,000 Central Newspapers Class A...... 37,500
1,500 Lee Enterprises, Inc............ 35,437
1,500 Sinclair Broadcast Group,
Inc.*......................... 65,250
---------
138,187
---------
CHEMICALS (0.8%)
1,350 M.A. Hanna Co................... 28,181
---------
COMPUTER EQUIPMENT & DATA
PROCESSING (12.2%)
700 3Com Corp....................... 32,025
4,200 Alpha Industries, Inc.*......... 37,275
1,500 Axent Technologies, Inc......... 24,750
800 Cisco Systems, Inc.............. 45,300
2,300 Computervision Corp.*........... 23,000
1,800 EG&G............................ 38,475
1,000 Fiserv, Inc..................... 30,000
2,000 Gerber Scientific, Inc.......... 32,250
2,200 Intergraph Corp.*............... 26,675
2,400 Scitex Corp.*................... 41,400
2,000 Trident International, Inc...... 43,500
700 Wallace Computer Services,
Inc........................... 41,825
400 Xylan Corp...................... 18,600
---------
435,075
---------
CONSUMER & OFFICE PRODUCTS
(4.4%)
800 Alberto Culver Co. Class A...... 32,000
2,000 Armor All Products Corp......... 29,750
800 Corporate Express, Inc.......... 32,000
1,200 First Brands, Inc............... 32,400
300 Resound Corp.................... 3,825
1,000 Stanhome, Inc................... 26,500
---------
156,475
---------
ELECTRICAL EQUIPMENT (4.7%)
3,000 AMX Corp........................ 23,625
1,400 Elsag Bailey.................... 37,450
1,200 LSI Logic....................... 31,200
900 National Service Industries..... 35,213
900 Verifone, Inc................... 38,025
---------
165,513
---------
FOODS & BEVERAGES (1.8%)
1,100 Dean Foods Co................... 27,225
1,100 Quality Dining, Inc.*........... 36,025
---------
63,250
---------
HEALTHCARE (7.0%)
1,060 Apria Healthcare Group*......... 33,258
1,000 Bard............................ 34,000
600 HCIA, Inc.*..................... $ 37,800
2,000 Osteotech, Inc.................. 14,500
1,500 Quorum Health Group, Inc.*...... 39,563
1,500 Summit Care Corp.*.............. 33,000
2,300 Transcend Services, Inc......... 24,438
1,000 Vertex Pharmaceuticals, Inc.*... 30,375
---------
246,934
---------
HEAVY INDUSTRY (9.2%)
1,500 Albany International Corp....... 33,938
700 Bandag, Inc..................... 32,813
1,900 BW/IP, Inc...................... 36,100
3,000 Calgon Carbon Corp.............. 40,500
2,100 Calmat, Inc..................... 38,063
600 Harsco Corp..................... 40,350
1,600 Martin Marietta Materials,
Inc.*......................... 38,800
1,300 Southdown, Inc.*................ 30,550
1,100 Trinity Industries, Inc......... 37,400
---------
328,514
---------
INSURANCE (3.7%)
800 Arthur J. Gallagher & Co........ 25,600
700 Hartford Steam Boiler
Insurance..................... 34,387
2,100 Western National Corp........... 38,587
2,900 Willis Corroon Group ADR........ 34,438
---------
133,012
---------
MOTOR VEHICLES & EQUIPMENT
(2.1%)
900 Danaher Corp.................... 39,150
1,500 Standard Products Co............ 34,875
---------
74,025
---------
OIL SERVICE (4.3%)
900 BJ Services Co.................. 31,612
1,200 Coflexip ADR.................... 20,850
500 Halliburton, Inc................ 27,750
2,700 Nabors Industries, Inc.*........ 43,875
1,000 Weatherford Enterra, Inc........ 30,000
---------
154,087
---------
PETROLEUM & NATURAL GAS (3.8%)
2,100 Cabot Oil & Gas Corp. Class A... 36,487
900 Equitable Resources, Inc........ 25,425
2,400 Natural Gas Clearinghouse....... 36,000
2,500 Quaker State Corp............... 37,500
---------
135,412
---------
RETAIL (9.4%)
4,800 Charming Shoppes, Inc........... 33,900
2,100 DiMon, Inc...................... 38,850
2,300 Fingerhut Companies, Inc........ 35,937
1,300 Fred Meyer, Inc................. 38,187
1,000 LA-Z-Boy Chair Co............... 30,125
1,200 Herman Miller, Inc.............. 36,750
3,200 Stride Rite Corp................ 26,400
900 Sunglass Hut, Inc............... 21,937
</TABLE>
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS--CONTINUED
RETAIL--CONTINUED
1,200 Waban, Inc.*.................... $ 28,650
2,500 Zale Corp.*..................... 42,187
---------
332,923
---------
SERVICES (3.2%)
1,000 CRA Managed Care, Inc........... 44,750
800 Healthcare Compare Corp.*....... 39,000
1,000 Republic Industries, Inc........ 29,125
---------
112,875
---------
TELECOMMUNICATIONS (7.0%)
300 Ascend Communications, Inc...... 16,875
4,200 Compression Labs................ 24,150
1,300 Metricom, Inc................... 20,475
300 Netscape Communications Corp.... 18,675
1,400 Octel Communication Corp.*...... 27,650
160 Premiere Technologies........... 5,040
500 Premisys Communications, Inc.... 30,500
1,600 USCS International, Inc......... 30,800
1,300 Videoserver, Inc................ 50,700
1,000 Winstar Communications, Inc..... 24,938
---------
249,803
---------
TRANSPORTATION (2.6%)
1,300 Alexander & Baldwin, Inc........ $ 31,362
1,700 J.B. Hunt Transportation
Services, Inc................. 35,488
1,300 Overseas Shipholding Group,
Inc........................... 23,562
---------
90,412
---------
TOTAL COMMON STOCKS (COST $2,641,935)...... 2,992,191
---------
TOTAL INVESTMENTS AT VALUE (84.2%) (COST
$2,641,935)(A)............................. 2,992,191
CASH AND OTHER ASSETS
NET OF LIABILITIES (15.8%)................. 560,112
---------
NET ASSETS (100.0%)........................ $3,552,303
---------
---------
- --------------------------
* Non-income producing security.
(a) The aggregate cost for federal income
tax purposes is $2,641,935, the
aggregate gross unrealized appreciation
is $460,286, and the aggregate gross
unrealized depreciation is $110,030,
resulting in net unrealized
appreciation of $350,256.
ADR: American Depository Receipt
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS (90.2%)
<TABLE>
<C> <S> <C>
AUSTRALIA (1.7%)
2,029 Broken Hill Proprietary
(Mining)...................... $ 28,012
1,720 CRA Ltd. (Mining)............... 26,442
1,100 News Corp Ltd. ADR
(Publishing).................. 25,850
4,000 Western Mining Corp., Ltd.
(Mining)...................... 28,609
---------
108,913
---------
BRAZIL (4.2%)
400 Centrais Electricas Brasileiras
ADR* (Electric Utilities)..... 5,816
2,150 Companhia Vale do Rio Doce S.A.
(Mining)...................... 43,163
2,100 Companhia Siderugica Nacional
ADR (Steel)................... 54,600
2,300 Refrigeracao Parana S.A. ADR
(Consumer Goods).............. 28,634
900 Telecomunicacoes Brasileiras ADR
(Telecommunications).......... 62,535
6,700 Usinas Siderugicas de Minas
Gerais S.A. ADR 144A
(Steel)....................... 72,733
---------
267,481
---------
CANADA (0.5%)
700 Magna International Inc. Class A
(Plastics & Metals)........... $ 32,200
---------
DENMARK (0.9%)
1,400 Tele Danmark A/S ADR
(Telecommunications).......... 35,525
475 Unidanmark A/S (Banking)........ 22,051
---------
57,576
---------
FINLAND (1.0%)
1,540 Kymmene (Forest Products &
Paper)........................ 32,076
800 Nokia Corp. ADR
(Telecommunications).......... 29,600
---------
61,676
---------
FRANCE (8.2%)
200 Accor (Services)................ 28,010
100 Air Liquide (Chemicals)......... 17,681
464 AXA (Insurance)................. 25,416
1,000 Bertrand Faure (Motor Vehicles &
Equipment).................... 33,067
300 Bic (Consumer Products)......... 42,656
150 Carrefour Super Marche (Grocery
Stores)....................... 84,146
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS--CONTINUED
FRANCE--CONTINUED
265 Christian Dior S.A. (Consumer
Goods)........................ $ 34,536
361 Companie Generale des Eaux
(Utilities)................... 40,430
693 Credit Local de France
(Financial Services).......... 56,677
230 Groupe Danone (Consumer
Products)..................... 34,851
550 GTM Entrerpose S.A.
(Engineering)................. 35,732
79 Legrand (Electronics)........... 14,137
325 Michelin Class B (Rubber &
Plastic Products)............. 15,905
440 Technip S.A. (Construction)..... 40,568
460 Valeo S.A. (Motor Vehicles &
Equipment).................... 24,651
---------
528,463
---------
GERMANY (4.1%)
60 CommerzBank AG (Banking)........ 12,428
130 Degussa AG (Plastics &
Metals)....................... 44,171
550 Deutsche Bank AG (Banking)...... 26,041
1,470 Hoechst AG (Chemicals).......... 49,936
90 MAN AG (Engineering)............ 22,419
400 RWE AG (Utilities).............. 15,598
27 Sandoz AG (Pharmaceuticals...... 30,887
195 SAP AG (Data Processing)........ 28,916
89 Volkswagen AG (Motor Vehicles &
Equipment).................... 33,096
---------
263,492
---------
GREAT BRITAIN (10.4%)
3,730 British Petroleum Co. PLC
(Petroleum & Natural Gas)..... 32,702
800 British Sky Broadcasting PLC ADR
(Publishing).................. 32,500
10,000 Burton Group PLC (Retail)....... 24,073
2,400 Dixons Group PLC (Retail)....... 19,644
2,600 General Cable PLC ADR*
(Telecommunications).......... 39,975
7,000 General Cable PLC*
(Telecommunications).......... 21,200
1,200 Glaxo Wellcome PLC ADR
(Pharmaceuticals)............. 32,100
1,333 International Cabletel, Inc.*
(Telecommunications).......... 39,324
3,000 Land Securities PLC (Financial
Services)..................... 29,027
3,700 Rank Organisation PLC
(Entertainment)............... 28,589
1,650 Reuters Holdings PLC ADR
(Publishing).................. 119,625
18,000 Rolls Royce PLC (Motor Vehicles
& Equipment).................. 62,621
4,000 Scottish Newcastle Breweries PLC
(Beverages)................... 40,909
7,366 Standard Chartered Bank PLC
(Banking)..................... $ 73,331
21,500 WPP Group PLC (Publishing)...... 72,460
---------
668,080
---------
HONG KONG (3.0%)
5,000 Cheung Kong Holdings, Ltd. (Real
Estate)....................... 36,011
9,000 Citic Pacific, Ltd. (Real
Estate)....................... 36,392
3,312 HSBC Holdings PLC (Banking)..... 50,060
7,000 New World Development Co. (Real
Estate)....................... 32,465
4,000 Sun Hung Kai Properties, Ltd.
(Real Estate)................. 40,435
---------
195,363
---------
INDIA (1.5%)
8,400 Morgan Stanley India Investment
Fund, Inc. (Investment Co.)... 94,500
---------
INDONESIA (0.9%)
7,000 PT Astra International (Motor
Vehicles & Equipment)......... 10,150
27,500 PT Telecomunikasion
(Telecommunications).......... 41,649
300 PT Telecomunikasion ADR
(Telecommunications).......... 8,925
---------
60,724
---------
ISRAEL (0.8%)
2,400 Geotek Communications, Inc.
(Telecommunications).......... 32,850
550 Teva Pharmaceutical Inds. Ltd.
ADR (Pharmaceuticals)......... 20,831
---------
53,681
---------
ITALY (3.3%)
3,500 Edison SpA (Electric
Utilities).................... 21,122
10,000 ENI SpA* (Petroleum & Natural
Gas).......................... 49,917
9,500 Istituto Mobiliare Italiano*
(Banking)..................... 79,884
14,800 Telecom Italia Mobile SpA
(Telecommunications).......... 33,180
12,800 Telicom Italia SpA
(Telecommunications).......... 27,551
---------
211,654
---------
JAPAN (24.4%)
1,000 Aoyama Trading Co. (Consumer
Goods)........................ 26,165
2,400 Bank of Tokyo, Ltd (Banking).... 55,771
30 Chubu Electric Power Company,
Inc. (Electric Utilities)..... 681
1,000 Chugai Parmaceutical Co., Ltd.
(Pharmaceuticals)............. 9,654
1,000 Chugoku Bank, Ltd. (Banking).... 18,755
2,000 Dai Nippon Printing Company
(Publishing).................. 38,791
2,000 Dai-ichi Kangyo Bank, Ltd.
(Banking)..................... 37,327
3,000 Daiichi Pharmaceutical, Ltd
(Pharmaceuticals)............. 46,384
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS--CONTINUED
JAPAN--CONTINUED
1,000 Daito Trust Construction
(Construction)................ $ 15,004
1,000 Daiwa House Industry Co., Ltd.*
(Construction)................ 15,553
2,000 Daiwa Securities Company, Ltd.
(Financial Services).......... 25,799
3,000 Fuji Photo Film Company, Ltd.
(Photographic Equipment &
Supplies)..................... 94,964
2,000 Fugitsu, Ltd. (Business
Equipment).................... 18,297
2,000 Higo Bank (Banking)............. 16,010
5,000 Hitachi, Ltd. (Electronics)..... 46,658
1,000 House Foods Industry (Food &
Beverages).................... 19,029
1,000 Industrial Bank of Japan, Ltd.
(Banking)..................... 24,884
1,000 Kinden Corp. (Engineering)...... 15,736
2,000 Kyushu Electric Power (Electric
Utilities).................... 45,195
2,000 Maruichi Steel Tube (Steel)..... 36,046
4,000 Matsushita Electric Industrial
Co., Ltd. (Capital
Equipment).................... 43,548
4,000 Mitsubishi Electric Industrial
Co., Ltd. (Capital
Equipment).................... 27,958
2,000 Mitsubishi Estate Company, Ltd.
(Real Estate)................. 27,629
2,000 Mitsubishi Steel Manufacturing
Co. (Steel)................... 11,747
2,000 Mitsubishi Trust and Banking
Corp. (Banking)............... 33,850
1,000 Mitsui Petrochemical Industries
(Chemicals)................... 8,051
1,000 Murata Mfg. Co. (Consumer
Goods)........................ 38,059
2,000 NEC Corp. (Electronics)......... 21,774
2,000 Nichicon Corp. (Electronics).... 29,093
2,000 Nippon Meat Packers (Food &
Beverages).................... 28,544
2,000 Nippon Oil Co. (Energy)......... 13,595
3,000 Nisshin Steel Co., Ltd
(Steel)....................... 11,665
3,000 Nitto Denko Corp (Capital
Equipment).................... 52,971
2,000 Ricoh Corp., Ltd. (Business
Equipment).................... 21,394
500 Rinnai Corp. (Consumer Goods)... 11,893
5,000 Sakura Bank, Ltd. (Banking)..... 55,807
2,000 Sanwa Bank (Banking)............ 37,144
2,000 Seino Transportation Co., Ltd.
(Transportation).............. 31,655
5,000 Sekisui House, Ltd.
(Construction)................ 57,179
2,000 Sharp Corp. (Electronics)....... 35,131
2,000 Shionogi & Co., Ltd.
(Pharmaceuticals)............. 17,236
1,000 Sumitomo Bank, Ltd.(Banking).... 19,395
3,000 Suzuki Motor Corp. (Motor
Vehicles & Equipment)......... 39,522
2,000 SXL Corp. (Construction)........ 19,761
3,000 Taiyo Yuden Co., Ltd. (Capital
Equipment).................... 37,876
2,030 Tohoku Electric Power Company
(Electric Utilities).......... $ 45,501
2,000 Tokio Marine and Fire Insurance
(Insurance)................... 26,714
3,000 Toppan Printing Co.
(Printing).................... 43,914
2,000 Toshiba Corp. (Electronics)..... 14,272
1,000 Uny Company, Ltd. (Retail)...... 19,853
1,000 Yakult Honsha (Beverages)....... 14,181
2,000 Yamaguchi Bank (Banking)........ 34,033
1,000 Yamanouchi Pharmaceutical Co.,
Ltd. (Pharmaceutical)......... 21,774
1,000 Yamato Transport Co., Ltd.
(Transportation).............. 11,802
---------
1,571,224
---------
KOREA (1.3%)
2,900 Korea Fund, Inc. (Investment
Co.).......................... 82,388
---------
MALAYSIA (2.3%)
12,000 Diversified Resources Bhd.
(Motor Vehicles &
Equipment).................... 41,371
4,000 Malayan Banking Bhd.
(Banking)..................... 38,484
9,000 Petronas Gas Bhd. (Petroleum &
Natural Gas).................. 38,604
4,000 YTL Corp. Bhd. (Construction)... 31,269
---------
149,728
---------
MEXICO (1.3%)
11,000 Cemex S.A. Class B
(Construction)................ 23,738
7,000 Grupo Modelo S.A. Series C
(Beverages)................... 9,440
5,000 Kimberly Clark Mexico (Consumer
Products)..................... 18,194
1,700 Sanluis Corp. S.A. (Motor
Vehicles & Equipment)......... 30,719
---------
82,091
---------
NETHERLANDS (2.9%)
800 Koninklijke PTT Nederland NV*
(Telecommunications).......... 30,302
2,200 Unilever NV (Consumer Goods).... 43,735
1,000 Wolters Kluwer NV
(Publishing).................. 113,691
---------
187,728
---------
PHILIPPINES (1.0%)
19,000 Ayala Corp Class B (Real
Estate)....................... 35,897
500 Philippine Long Distance
Telephone
(Telecommunications).......... 29,063
---------
64,960
---------
PORTUGAL (0.3%)
800 Portugal Telecom S.A.
(Telecommunications).......... 20,923
---------
SINGAPORE (2.3%)
3,000 Overseas Chinese Banking Corp.,
Ltd.* (Banking)............... 35,082
2,400 Singapore Press Holdings, Ltd.
(Publishing).................. 47,116
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS--CONTINUED
SINGAPORE--CONTINUED
9,000 Straits Steamship Land
(Transportation).............. $ 30,106
4,000 United Overseas Bank, Ltd.
(Banking)..................... 38,271
---------
150,575
---------
SOUTH AFRICA (2.2%)
4,000 Amalgamated Banks of South
Africa (Banking).............. 22,156
720 Anglo America Industrial Corp.
(Mining)...................... 24,975
7,000 General Minning Union Corp.*
(Mining)...................... 25,848
1,600 South African Breweries, Ltd.
(Food & Beverages)............ 23,580
804 South African Breweries, Ltd.
ADR (Food & Beverages)........ 46,896
---------
143,455
---------
SPAIN (1.6%)
146 Banco Popular (Banking)......... 26,051
300 BankInter S.A. (Banking)........ 33,585
1,190 Repsol S.A. ADR (Petroleum &
Natural Gas).................. 41,276
---------
100,912
---------
SWEDEN (3.8%)
1,500 Astra AB Fria (Healthcare)...... 66,363
1,000 Autoliv AB (Motor Vehicles &
Equipment).................... 30,501
2,000 Ericsson Telephone Co. ADR Class
B (Telecommunications)........ 43,000
510 Hennes & Mauritz Fria
(Textiles).................... 47,360
1,120 Mo och Domsjo AB (Paper & Forest
Products)..................... 28,750
2,000 Stora Kopparbergs Bergslags AB
Class A (Paper & Forest
Products)..................... 26,424
---------
242,398
---------
SWITZERLAND (4.1%)
38 Asea Brown Boveri AG
(Electronics)................. 47,025
33 Ciba Geigy AG (Chemicals)....... 40,231
50 Holderbank Financial AG Class B
(Banking)..................... $ 39,971
6 Roche Holding AG
(Pharmaceuticals)............. 45,782
60 Swiss Reinsurance Co.
(Insurance)................... 61,636
29 Union Bank of Switzerland Class
B (Banking)................... 28,400
---------
263,045
---------
THAILAND (2.2%)
1,500 Advanced Information Systems*
(Telecommunications).......... 22,218
5,000 Krung Thai Bank, Ltd.
(Banking)..................... 22,848
8,900 Thai Farmers Bank, Ltd.
(Banking)..................... 97,467
---------
142,533
---------
TOTAL COMMON STOCKS (COST $5,282,559)...... 5,805,763
---------
PRINCIPAL
- ---------
BONDS (0.3%)
$ 50 HKR International Ltd., 6.0%,
6/26/00 (Tourism)............. 6
20,000 Italy INA Convertible, 5%,
6/28/01 (Real Estate)......... 20,457
---------
TOTAL BONDS (COST $20,005)................. 20,463
---------
TOTAL INVESTMENTS AT VALUE (90.5%)
(COST $5,302,564)(A)....................... $5,826,226
CASH AND OTHER ASSETS
NET OF LIABILITIES (9.5%).................. 611,775
---------
NET ASSETS (100.0%)........................ $6,438,001
---------
---------
- --------------------------
* Non-income producing security.
(a) The aggregate cost for federal income
tax purposes is $5,302,564, the
aggregate gross unrealized appreciation
is $672,495, and the aggregate gross
unrealized depreciation is $148,833,
resulting in net unrealized
appreciation of $523,662.
ADR: American Depositary Receipt.
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
<TABLE>
<C> <S> <C>
COMMON STOCKS (51.4%)
AIRCRAFT/DEFENSE MANUFACTURING
(3.0%)
800 Boeing Co..................... $ 69,700
800 General Dynamics.............. 49,600
-----------
119,300
-----------
AIRLINES (1.6%)
1,000 Continental Airlines Class
B*.......................... $ 61,750
-----------
AUTOMOTIVE (1.3%)
400 Chrysler Corp................. 24,800
600 Magna International Class A... 27,600
-----------
52,400
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS--CONTINUED
BANKING & FINANCE (5.2%)
1,100 Chase Manhattan Corp.......... $ 77,688
900 Citicorp...................... 74,363
1,600 Federal National Mortgage
Association................. 53,600
-----------
205,651
-----------
CHEMICALS (1.6%)
2,000 Monsanto Co................... 65,000
-----------
COMPUTER EQUIPMENT & DATA
PROCESSING (8.4%)
400 America Online, Inc.*......... 17,500
300 BMC Software*................. 17,925
200 Hewlett Packard, Inc.......... 19,925
800 Intel Corp.................... 58,750
700 International Business
Machines.................... 69,300
400 Microsoft Corp.*.............. 48,050
1,100 Seagate Technology, Inc.*..... 49,500
2,900 System Software Associates,
Inc......................... 49,300
-----------
330,250
-----------
CONSUMER PRODUCTS (5.3%)
800 General Electric.............. 69,200
800 Illinois Tool Works, Inc...... 54,100
1,000 Johnson & Johnson............. 49,500
1,200 Mattel, Inc................... 34,350
-----------
207,150
-----------
FOODS & BEVERAGES (0.5%)
400 Coca-Cola Company............. 19,550
-----------
GOLD AND SILVER ORES (0.4%)
600 Barrick Gold Corp............. 16,275
-----------
HEALTHCARE (0.6%)
400 Medtronic, Inc................ 22,400
-----------
INDUSTRIAL ENGINEERING (1.4%)
200 Harsco Corp................... 13,450
1,050 Thermo Electron Corp.*........ 43,706
-----------
57,156
-----------
INSURANCE (4.3%)
2,100 Allmerica Financial Corp...... 62,475
450 American International Group,
Inc......................... 44,381
500 SunAmerica, Inc............... 28,250
750 Travelers Group, Inc.......... 34,219
-----------
169,325
-----------
LEISURE & ENTERTAINMENT (2.5%)
1,400 Viacom Class B*............... 54,425
700 Walt Disney Co................ 44,012
-----------
98,437
-----------
PAPER & FOREST PRODUCTS (3.5%)
600 Alco Standard Corp............ 27,150
900 Kimberly-Clark Corp........... 69,525
800 Mead Corp..................... 41,500
-----------
138,175
-----------
PETROLEUM & NATURAL GAS (4.7%)
600 Amoco Corp.................... $ 43,425
1,000 Enron Corp.................... 40,875
1,000 Triton Energy, Inc.*.......... 48,625
1,500 Unocal Corp................... 50,625
-----------
183,550
-----------
PHARMACEUTICALS (2.9%)
700 Bristol-Myers Squibb Co....... 63,000
700 Pfizer, Inc................... 49,962
-----------
112,962
-----------
RETAIL (2.0%)
1,200 Home Depot.................... 64,800
600 OfficeMax, Inc.*.............. 14,325
-----------
79,125
-----------
TELECOMMUNICATIONS (2.3%)
1,320 Ericsson Telephone Co. ADR
Class B..................... 28,380
1,800 Network Equipment
Technology*................. 38,250
600 Nokia Corp. ADR............... 22,200
-----------
88,830
-----------
TOTAL COMMON STOCKS (COST $1,793,511)..... 2,027,286
-----------
PRINCIPAL
- ---------
CORPORATE BONDS (7.8%)
$ 20,000 Access Financial Corp., 7.1%,
5/15/21..................... 19,281
40,000 G.E. Capital Management
Service, 6.5%, 11/25/23..... 33,973
44,500 G.E. Capital Management
Service, 6.5%, 3/25/24...... 41,255
19,135 Merrill Lynch Mortgage Inv.
Inc., 9.7%, 7/15/10......... 20,254
45,221 Merrill Lynch Mortgage Inv.
Inc., 7.65%, 1/15/12........ 45,595
40,000 Merrill Lynch Mortgage Inv.
Inc., 7.09% 12/26/25........ 38,731
50,000 Prudential Home Mortgage Sec.,
6.25%, 4/25/24.............. 40,628
40,000 Storage Technology, 7%,
3/15/08..................... 66,100
-----------
TOTAL CORPORATE BONDS (COST $287,070)..... 305,817
-----------
MUNICIPAL BONDS (11.1%)
40,000 Baltimore Community
Development Financing, 8.2%,
8/15/07..................... 41,700
15,000 Colorado Housing Finance
Authority Series B, 8%,
8/1/02...................... 15,005
50,000 Miami Florida Revenue, 7.25%,
12/1/00..................... 51,000
20,000 Michigan State Job Development
Authority MFM, 7.1%,
5/1/98...................... 20,200
65,000 New York City, 10.5%,
11/15/14.................... 46,462
10,000 New York City Taxable, 9.75%,
8/5/12...................... 11,100
40,000 New York State HFA Service,
7.5%, 9/15/03............... 39,450
40,000 New York State Job Development
Authority Series A, 7.625%,
3/1/97...................... 40,250
50,000 Ohio Housing Financial Agency,
7.9%, 10/1/14............... 51,812
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
PRINCIPAL (NOTE 1)
- --------- -----------
<TABLE>
<C> <S> <C>
MUNICIPAL BONDS--CONTINUED
$ 30,000 Oklahoma City Airport
Taxable, 9.4%, 11/1/10..... $ 30,713
40,000 Oregon State General
Obligation, 6.9%, 1/1/00... 39,850
50,000 Rosecliff Department of
Energy GSA, 8%, 11/15/08... 51,938
---------
TOTAL MUNICIPAL BONDS (COST $434,785)... 439,480
---------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (17.9%)
50,000 Federal Home Loan Mortgage
Corp., 5.5%, 9/15/02....... 49,633
Federal National Mortgage Association:
35,000 6.15%, 10/25/07.............. 33,707
40,000 5%, 10/25/03................. 39,388
25,000 U.S. Treasury Bonds, 8.125%,
8/15/19.................... 28,056
U.S. Treasury Notes:
170,000 7.25%, 5/15/04............... 176,150
87,000 6.875%, 8/31/99.............. 88,255
40,000 6.25%, 2/15/03............... 39,313
$ 110,000 6.25%, 8/31/00............... $ 109,206
155,000 5.75%, 8/15/03............... 147,580
---------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (COST $715,106)............. 711,288
---------
TOTAL INVESTMENTS AT VALUE (88.3%)
(COST $3,230,472)(A).................... 3,483,871
CASH AND OTHER ASSETS
NET OF LIABILITIES (11.7%).............. 459,787
---------
NET ASSETS (100.0%)..................... $3,943,658
---------
---------
- --------------------------
* Non-income producing security.
(a) The aggregate cost for federal
income tax purposes is $3,230,472,
the aggregate gross unrealized
appreciation is $326,104, and the
aggregate gross unrealized
depreciation is $72,705, resulting
in net unrealized appreciation of
$253,399.
ADR: American Depository Receipt
</TABLE>
- --------------------------------------------------------------------------------
INCOME OPPORTUNITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
VALUE (NOTE
PRINCIPAL 1)
- --------- -----------
<TABLE>
<C> <S> <C>
CORPORATE BONDS (38.6%)
$ 250,000 Alliance Gaming, 12.875%, 6/30/03
(United States).................. $ 249,375
200,000 Hayes Wheels, 11%, 7/15/06 (United
States).......................... 202,500
80,000 International Wire Group, 11.75%,
6/1/05 (United States)........... 79,400
141,700 MCII Holdings (USA), Zero Coupon,
11/15/02 (United States)......... 110,526
100,000 Mesa Operating Co., 10.625%, 7/1/06
(United States).................. 101,125
100,000 Owens & Minor, 10.875%, 6/1/06
(United States).................. 103,500
80,000 Showboat Marina Casino, 13.5%,
3/15/03 (United States).......... 86,400
100,000 Specialty Foods, 11.125%, 10/1/02
(United States).................. 94,750
80,000 Stena AB, 10.5%, 12/15/05
(Sweden)......................... 79,400
100,000 Sweetheart Cup, 9.625%, 9/1/00
(United States).................. 98,875
100,000 Trans Texas Gas, 11.5%, 6/15/02
(United States).................. 99,750
75,000 Trump Atlantic City, 11.25%, 5/1/06
(United States).................. 75,375
125,000 Unisys Corp., 12%, 4/15/03 (United
States).......................... 127,500
-----------
TOTAL CORPORATE BONDS (COST $1,462,708)........ 1,508,476
-----------
EUROBONDS (8.8%)
$ 150,000 Empresas Ica Sociedad, 11.875%,
5/30/01 (Mexico)................. $ 151,125
90,000 Hidroelectrica Alicura, 8.375%,
3/15/99 (Argentinal)............. 87,300
100,000 RBS Participacoes S.A., 14%,
12/15/03 (Brazil)................ 104,500
-----------
TOTAL EUROBONDS (COST $333,369)................ 342,925
-----------
FOREIGN GOVERNMENT (7.6%)
314,000 Argentina Bocon Pre 4, 5.42%,
9/1/02 (Argentina) (Cost
$280,457)........................ 297,908
-----------
YANKEE BOND (14.5%)
250,000 APP International Finance, 11.75%,
10/1/05 (Indonesia).............. 255,625
100,000 Grupo Televisa, 11.875%, 5/15/06
(Mexico)......................... 102,000
150,000 Tolmex S.A., 8.375%, 11/1/03
(Mexico)......................... 125,062
80,000 Trizec Finance, 10.875%, 10/15/05
(Canada)......................... 82,000
-----------
TOTAL YANKEE BONDS (COST $565,818)............. 564,687
-----------
BRADY BONDS (25.0%)
250,000 Central Bank of Nigeria, 6.25%,
11/15/20 (Nigeria)............... 130,313
200,000 Government of Bulgaria, 6.25%,
7/28/11 (Bulgaria)............... 94,750
150,000 Government of Bulgaria, 6.25%,
7/28/24 (Bulgaria)............... 77,437
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
INCOME OPPORTUNITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
VALUE
PRINCIPAL (NOTE 1)
- --------- -----------
BRADY BONDS--CONTINUED
$ 250,000 Mexican Discount Bond Series B,
6.39%, 12/31/19 (Mexico)......... $ 196,250
150,000 National Government of Jordan, 4%,
12/23/23 (Jordan)................ 78,000
185,712 Republic of Brazil, 8%, 4/15/14
(Brazil)......................... 114,677
187,000 Republic of Ecuador, 6.0625%,
2/28/25 (Ecuador)................ 106,824
250,000 Republic of Venezuela, 6.625%,
12/18/07 (Venezuela)............. 176,875
-----------
TOTAL BRADY BONDS (COST $924,996).............. 975,126
-----------
UNITS
- ---------
WARRANTS (0.0%)
Central Bank of Nigeria Warrants,
expires 11/15/20*................. 0
250 United Mexican States Warrants,
384,000 expires 6/30/03*.................. 0
------------
TOTAL WARRANTS................................. 0
TOTAL INVESTMENTS AT VALUE
(COST $3,567,348)(A) (94.4%)................... $ 3,689,122
CASH AND OTHER ASSETS
NET OF LIABILITIES (5.6%)...................... 218,240
------------
NET ASSETS (100.0%)............................ $ 3,907,362
------------
------------
- --------------------------
* Non-income producing security
(a) The aggregate cost for federal income tax
purposes is $3,567,348, the aggregate gross
unrealized appreciation is $139,027, and
the aggregate gross unrealized depreciation
is $17,253, resulting in net unrealized
appreciation of $121,774.
- --------------------------------------------------------------------------------
STANDBY INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
VALUE
PRINCIPAL (NOTE 1)
- --------- -----------
<TABLE>
<C> <S> <C>
ASSET BACKED SECURITIES (14.4%)
$205,081 Advanta Mortgage Loan Trust, 6.14%,
10/25/08......................... $ 204,440
141,403 Daimler Benz Grantor Trust, 3.9%,
10/15/98......................... 140,737
110,000 Federal Home Loan Marketing Assn.,
5.35%, 7/31/96................... 109,476
166,423 Honda Auto Receivables Grantor
Trust, 6.2%, 12/15/00............ 166,742
315,173 Premier Auto Trust, 6.85%,
10/4/97.......................... 315,822
----------
TOTAL ASSET-BACKED SECURITIES (COST
$936,629)..................................... 937,217
----------
CORPORATE BONDS (17.5%)
250,000 BNP Canada, 5.05%, 9/27/96......... 246,638
315,000 Commonwealth Edison, 8.93%,
8/15/96.......................... 316,221
250,000 Corporate Assn. of Tractor Dealers,
5.35%, 8/28/96................... 247,763
125,000 Merrill Lynch, 5%, 12/15/96........ 124,575
200,000 Student Loan Marketing Assn.,
5.425%, 11/27/96................. 200,280
----------
TOTAL CORPORATE BONDS (COST $1,133,834)....... 1,135,477
----------
COMMERCIAL PAPER (67.8%)
250,000 Boston Edison Corp., 5.46%,
7/9/96........................... 248,711
320,000 Comdisco, Inc., 5.55%, 8/15/96..... 317,089
320,000 ConAgra Inc., 5.5%, 7/9/96......... 318,973
315,000 Crown Cork & Seal Co., Inc., 5.6%,
7/25/96.......................... 313,579
$315,000 Hanson Financial, 5.5%, 7/8/96..... $ 313,652
315,000 IES Diversified, Inc., 5.5%,
7/22/96.......................... 312,738
320,000 JB Hunt Transport, 5.59%, 7/3/96... 319,652
300,000 PacifiCorp, 5.48%, 7/8/96.......... 298,128
235,000 Pennsylvania Power & Light, 5.6%,
7/29/96.......................... 233,867
300,000 Public Service Electric & Gas,
5.53%, 7/17/96................... 298,387
250,000 Ryder Systems, Inc., 5.48%,
7/2/96........................... 249,163
320,000 Texas Utilities Corp., 5.55%,
7/12/96.......................... 318,915
240,000 Textron Financial, 5.48%,
7/10/96.......................... 238,465
305,000 Torchmark Corporation, 5.43%,
7/8/96........................... 303,436
320,000 UOP, 5.5%,7/3/96................... 318,387
----------
TOTAL COMMERCIAL PAPER (COST $4,403,142)...... 4,403,142
----------
TOTAL INVESTMENTS AT VALUE (99.7%) (COST
$6,473,605)(A)................................ 6,475,836
CASH AND OTHER ASSETS
NET OF LIABILITIES (0.3%)..................... 19,110
----------
NET ASSETS (100.0%)........................... $6,494,946
----------
----------
- --------------------------
(a) The aggregate cost for federal income tax
purposes is $6,473,605, the aggregate
gross unrealized appreciation is $3,101,
and the aggregate gross unrealized
depreciation is $870, resulting in net
unrealized appreciation of $2,231.
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
SELECT ADVISORS VARIABLE INSURANCE TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1) (a) $2,992,191 $5,826,226 $3,483,871 $3,689,122 $ 6,475,836
Cash 597,628 843,610 484,396 457,756 1,136
Receivables for:
Investments sold -- 193,703 -- -- --
Fund shares sold 631 803 391 732 --
Dividends 3,090 14,351 1,674 -- --
Interest 1,555 2,274 23,154 63,112 24,349
Foreign tax reclaim 20 9,355 16 -- --
Open forward foreign currency contract (Note 1) -- 35 -- -- --
Deferred organization expenses (Note 1) 13,269 13,269 13,269 13,269 13,361
Reimbursement receivable from Advisor (Note 3) -- 2,848 -- -- --
---------- ------------- ---------- ----------- -----------
Total assets 3,608,384 6,906,474 4,006,771 4,223,991 6,514,682
---------- ------------- ---------- ----------- -----------
LIABILITIES:
Payable for investments purchased 39,641 456,132 46,858 300,000 --
Payable to Advisor (Note 2) 5,773 -- 6,016 5,835 2,686
Payable for fund shares repurchased -- -- -- -- 4,232
Payable to Administrator (Note 2) 2,521 3,505 2,521 2,439 2,201
Other accrued expenses 8,146 8,836 7,718 8,355 10,617
---------- ------------- ---------- ----------- -----------
Total liabilities 56,081 468,473 63,113 316,629 19,736
---------- ------------- ---------- ----------- -----------
NET ASSETS: $3,552,303 $6,438,001 $3,943,658 $3,907,362 $ 6,494,946
---------- ------------- ---------- ----------- -----------
---------- ------------- ---------- ----------- -----------
Shares outstanding 287,031 593,050 332,046 362,381 649,094
---------- ------------- ---------- ----------- -----------
---------- ------------- ---------- ----------- -----------
Net asset value $ 12.38 $ 10.86 $ 11.88 $ 10.78 $ 10.01
---------- ------------- ---------- ----------- -----------
---------- ------------- ---------- ----------- -----------
(a) Cost of investments $2,641,935 $5,302,564 $3,230,472 $3,567,348 $ 6,473,605
---------- ------------- ---------- ----------- -----------
---------- ------------- ---------- ----------- -----------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1)
Interest $ 7,246 $ 10,244 $ 46,301 $ 181,364 $ 173,061
Dividends (a) 15,393 66,979 13,087 -- --
---------- ------------- ---------- ----------- ----------
TOTAL INVESTMENT INCOME 22,639 77,223 59,388 181,364 173,061
---------- ------------- ---------- ----------- ----------
EXPENSES:
Administration and fund accounting fees (Note 2) 13,339 12,777 14,322 13,298 12,504
Investment advisory fees (Note 2) 11,688 28,841 11,176 9,738 7,634
Auditing fees 6,378 6,701 3,586 9,697 6,392
Custody fees 4,866 16,256 3,305 3,193 2,900
Sponsor fee (Note 2) 2,922 5,651 3,193 2,996 6,107
Amortization of organization expenses (Note 1) 1,926 1,926 1,926 1,926 1,939
Trustee fees (Note 2) 428 808 465 433 876
Miscellaneous 2,016 4,256 2,209 1,974 4,698
---------- ------------- ---------- ----------- ----------
Total expenses 43,563 77,216 40,182 43,255 43,050
Waiver of Sponsor fee (Note 2) (2,922) (5,651) (3,193) (2,996) (6,107)
Reimbursement from Advisor (Note 3) (23,834) (36,251) (22,620) (27,524) (21,675)
---------- ------------- ---------- ----------- ----------
Net expenses 16,807 35,314 14,369 12,735 15,268
---------- ------------- ---------- ----------- ----------
NET INVESTMENT INCOME 5,832 41,909 45,019 168,629 157,793
---------- ------------- ---------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments (b) 183,465 211,655 102,064 165,652 1,475
Net change in unrealized appreciation (depreciation) on
investments 80,564 209,060 (2,935) 19,245 (12,505)
---------- ------------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS): 264,029 420,715 99,129 184,897 (11,030)
---------- ------------- ---------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 269,861 $ 462,624 $ 144,148 $ 353,526 $ 146,763
---------- ------------- ---------- ----------- ----------
---------- ------------- ---------- ----------- ----------
</TABLE>
- ------------------------------
(a) Net of foreign tax withholding of $68 for the Touchstone Emerging Growth
Portfolio and $9,285 for the Touchstone International Equity Portfolio.
(b) Includes foreign currency transaction losses of $7,939 for Touchstone
International Equity Portfolio.
9
<PAGE>
SELECT ADVISORS VARIABLE INSURANCE TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH
PORTFOLIO
------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
JUNE 30, YEAR ENDED
1996 DECEMBER 31,
(UNAUDITED) 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 5,832 $ 24,559
Net realized gain (loss) on investments 183,465 120,237
Net change in unrealized appreciation (depreciation) on
investments 80,564 258,146
------------ ------------
Net increase (decrease) in net assets resulting from
operations 269,861 402,942
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (32,317)
Realized capital gains -- (142,245)
------------ ------------
Total dividends and distributions -- (174,562)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 719,208 199,651
Reinvestment of dividends -- 174,562
Cost of shares redeemed (51,443) (7,420)
------------ ------------
Net increase from investor's transactions 667,765 366,793
------------ ------------
TOTAL CHANGES IN NET ASSETS 937,626 595,173
------------ ------------
NET ASSETS
Beginning of period 2,614,677 2,019,504
------------ ------------
End of period $3,552,303 $2,614,677
------------ ------------
------------ ------------
NET ASSETS CONSIST OF:
Paid-in capital $3,034,163 $2,366,398
Undistributed net investment income 6,427 595
Accumulated net realized gain on investments 161,457 (22,008)
Net unrealized appreciation of investments 350,256 269,692
------------ ------------
Net assets applicable to shares outstanding $3,552,303 $2,614,677
------------ ------------
------------ ------------
SHARES OUTSTANDING (NOTE 4):
Shares sold 59,404 17,137
Reinvestment of dividends -- 15,452
------------ ------------
Net increase from investor's transactions 59,404 32,589
Shares redeemed (4,291) (663)
------------ ------------
Net increase 55,113 31,926
Beginning of period 231,918 199,992
------------ ------------
End of period 287,031 231,918
------------ ------------
------------ ------------
</TABLE>
- ------------------------------
(a) Includes foreign currency transaction losses of $7,939.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INCOME OPPORTUNITY STANDBY INCOME
PORTFOLIO BALANCED PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------- --------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 41,909 $ 22,179 $ 45,019 $ 69,070 $ 168,629 $ 271,025 $ 157,793 $ 295,090
211,655(a) (315,865) 102,064 209,370 165,652 18,334 1,475 (2,779)
209,060 554,467 (2,935) 229,338 19,245 170,448 (12,505) 2,114
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
462,624 260,781 144,148 507,778 353,526 459,807 146,763 294,425
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
-- (14,558) (45,345) (78,513) (155,073) (296,140) (157,847) (295,796)
-- -- -- (185,230) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
-- (14,558) (45,345) (263,743) (155,073) (296,140) (157,847) (295,796)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
792,668 199,905 963,018 355,130 1,016,211 261,593 1,051,473 473,149
-- 14,558 45,433 263,743 155,073 296,140 157,847 329,384
(31,922) (3,472) (58,356) (2,298) (63,975) (3,177) (493,226) (24,010)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
760,746 210,991 950,095 616,575 1,107,309 554,556 716,094 778,523
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
1,223,370 457,214 1,048,898 860,610 1,305,762 718,223 705,010 777,152
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
5,214,631 4,757,417 2,894,760 2,034,150 2,601,600 1,883,377 5,789,936 5,012,784
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$6,438,001 $5,214,631 $3,943,658 $2,894,760 $3,907,362 $2,601,600 $6,494,946 $5,789,936
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$5,967,342 $5,206,596 $3,566,226 $2,616,131 $3,660,835 $2,553,526 $6,494,537 $5,778,443
47,526 5,617 (127) 199 13,625 69 14 68
(100,529) (312,184) 124,160 22,096 111,128 (54,524) (1,836) (3,311)
523,662 314,602 253,399 256,334 121,774 102,529 2,231 14,736
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$6,438,001 $5,214,631 $3,943,658 $2,894,760 $3,907,362 $2,601,600 $6,494,946 $5,789,936
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
4,697 20,307 80,991 29,352 95,881 26,665 104,973 47,228
-- 1,456 3,834 23,008 14,665 31,633 15,761 32,806
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
74,697 21,763 84,825 52,360 110,546 58,298 120,734 80,034
(3,041) (361) (4,932) (199) (6,117) (338) (49,268) (2,398)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
71,656 21,402 79,893 52,161 104,429 57,960 71,466 77,636
521,394 499,992 252,153 199,992 257,952 199,992 577,628 499,992
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
593,050 521,394 332,046 252,153 362,381 257,952 649,094 577,628
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
SELECT ADVISORS VARIABLE INSURANCE TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOUCHSTONE INTERNATIONAL
TOUCHSTONE EMERGING GROWTH EQUITY TOUCHSTONE BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------- ----------------------------- -----------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
FOR THE NOVEMBER FOR THE NOVEMBER FOR THE NOVEMBER
SIX FOR THE 21, SIX FOR THE 21, SIX FOR THE 21,
MONTHS YEAR 1994(A) MONTHS YEAR 1994(A) MONTHS YEAR 1994(A)
ENDED ENDED TO ENDED ENDED TO ENDED ENDED TO
JUNE 30, DECEMBER DECEMBER JUNE 30, DECEMBER DECEMBER JUNE 30, DECEMBER DECEMBER
1996 31, 31, 1996 31, 31, 1996 31, 31,
(UNAUDITED) 1995 1994 (UNAUDITED) 1995 1994 (UNAUDITED) 1995 1994
-------- -------- ------- -------- ------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 11.27 $10.10 $10.00 $ 10.00 $ 9.51 $10.00 $ 11.48 $10.17 $10.00
-------- -------- ------- -------- ------- -------- -------- -------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.02 0.11 0.04 0.07 0.04 -- 0.15 0.32 0.05
Net realized and unrealized
gain on investments 1.09 1.87 0.06 0.79 0.48 (0.49) 0.40 2.15 0.12
-------- -------- ------- -------- ------- -------- -------- -------- -------
TOTAL FROM INVESTMENT
OPERATIONS 1.11 1.98 0.10 0.86 0.52 (0.49) 0.55 2.47 0.17
-------- -------- ------- -------- ------- -------- -------- -------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income -- (0.15) -- -- (0.03) -- (0.15) (0.37) --
Realized capital gains -- (0.66) -- -- -- -- -- (0.79) --
-------- -------- ------- -------- ------- -------- -------- -------- -------
TOTAL DIVIDENDS AND
DISTRIBUTIONS -- (0.81) -- -- (0.03) -- (0.15) (1.16) --
-------- -------- ------- -------- ------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 12.38 $11.27 $10.10 $ 10.86 $10.00 $ 9.51 $ 11.88 $11.48 $10.17
-------- -------- ------- -------- ------- -------- -------- -------- -------
-------- -------- ------- -------- ------- -------- -------- -------- -------
TOTAL RETURN (B) 9.85% 19.57% 1.00% 8.60% 5.45% (4.90%) 4.80% 24.56% 1.70%
RATIOS AND SUPPLEMENTAL DATA
(C):
Net assets at end of period
(000's) $ 3,552 $2,615 $2,020 $ 6,438 $5,215 $4,757 $ 3,944 $2,895 $2,034
Ratios to average net assets:
Expenses 1.15% 1.15% 1.15% 1.25% 1.25% 1.25% 0.90% 0.90% 0.90%
Net investment income 0.40% 1.09% 3.67% 1.48% 0.46% 1.23% 2.81% 2.87% 4.26%
Expenses, without waiver and
reimbursement 2.97% 3.73% 11.08% 2.73% 3.69% 5.58% 2.51% 3.46% 8.97%
Portfolio Turnover 51% 101% 0% 47% 86% 0% 47% 124% 3%
Average commission rate (d) $0.0556 $0.0231 $0.0694
</TABLE>
<TABLE>
<CAPTION>
TOUCHSTONE INCOME
OPPORTUNITY TOUCHSTONE STANDBY INCOME
PORTFOLIO PORTFOLIO
---------------------------- ---------------------------
FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD
SIX NOVEMBER SIX NOVEMBER
MONTHS FOR THE 21, MONTHS FOR THE 21,
ENDED YEAR 1994(A) ENDED YEAR 1994(A)
JUNE ENDED TO JUNE ENDED TO
30, DECEMBER DECEMBER 30, DECEMBER DECEMBER
1996 31, 31, 1996 31, 31,
(UNAUDITED) 1995 1994 (UNAUDITED) 1995 1994
------- ------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $10.09 $ 9.42 $10.00 $10.02 $10.03 $10.00
------- ------- -------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.56 1.22 0.12 0.26 0.56 0.05
Net realized and unrealized
gain on investments 0.66 0.79 (0.70) (0.01) (0.01) 0.03
------- ------- -------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 1.22 2.01 (0.58) 0.25 0.55 0.08
------- ------- -------- ------- ------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income (0.53) (1.34) -- (0.26) (0.56) (0.05)
Realized capital gains -- -- -- -- -- --
------- ------- -------- ------- ------- -------
TOTAL DIVIDENDS AND
DISTRIBUTIONS (0.53) (1.34) -- (0.26) (0.56) (0.05)
------- ------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $10.78 $10.09 $ 9.42 $10.01 $10.02 $10.03
------- ------- -------- ------- ------- -------
------- ------- -------- ------- ------- -------
TOTAL RETURN (B) 12.37% 23.35% (5.80%) 2.48% 5.90% 0.30%
RATIOS AND SUPPLEMENTAL DATA
(C):
Net assets at end of period
(000's) $3,907 $2,602 $1,883 $6,495 $5,790 $5,013
Ratios to average net assets:
Expenses 0.85% 0.85% 0.85% 0.50% 0.50% 0.50%
Net investment income 11.22% 12.81% 11.24% 5.15% 5.59% 4.90%
Expenses, without waiver and
reimbursement 2.88% 3.54% 11.56% 1.41% 1.73% 3.67%
Portfolio Turnover 108% 104% 45% 121% 159% 56%
</TABLE>
- ------------------------------
(a) Commencement of operations.
(b) Total return is not annualized. Total return is calculated assuming a
purchase of shares on the first day and a sale of the shares on the last day
of the period, and reinvestment of all dividends and distributions.
(c) Ratios are annualized. Portfolio turnover is not annualized.
(d) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary between periods and
funds depending on the volume and character of trades executed in various
markets where trading practices and comission rate structures may differ.
12
<PAGE>
SELECT ADVISORS VARIABLE INSURANCE TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES:
Select Advisors Variable Insurance Trust (the "Trust") is registered under
the Investment Company Act of 1940, as amended as an open-end management
investment company organized as a Massachusetts business trust on February 7,
1994. The Trust consists of five Portfolios: Emerging Growth Portfolio,
International Equity Portfolio, Balanced Portfolio, Income Opportunity Portfolio
and Standby Income Portfolio ("Portfolios").
The initial capital contributions of $1,999,920 to the Emerging Growth
Portfolio, the Balanced Portfolio, and the Income Opportunity Portfolio, and the
initial capital contributions of $4,999,920 to the International Equity
Portfolio and the Standby Income Portfolio were made by Western-Southern Life
Assurance Company ("Western-Southern").
The Trust offers shares of beneficial interest of each portfolio to separate
accounts of Western-Southern as a funding vehicle for certain variable annuity
contracts issued by Western-Southern through the separate accounts.
The accounting policies are in conformity with generally accepted accounting
principles (GAAP) for investment companies. The preparation of financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the related amounts and disclosures in the financial
statements. Actual results could differ from these estimates.
The following is a summary of the significant accounting policies of the
Portfolios:
a) INVESTMENT VALUATION. The value of each security for which readily
available market quotations exist is based on a decision as to the broadest and
most representative market for such security. The value of such security will be
based either on the last sale price on a national securities exchange, or, in
the absence of recorded sales, at the readily available closing bid price on
such exchanges, or at the quoted bid price in the over-the-counter market.
Securities listed on foreign exchanges are valued at the last quoted sale price
available before the net assets are valued. Unlisted securities are valued at
the average of the quoted bid and asked prices in the over-the-counter market.
Debt securities are valued by a pricing service which determines valuations
based upon market transactions for normal, institutional-size trading units of
similar securities. Securities or other assets for which market quotations are
not readily available are valued at fair value in good faith in accordance with
procedures established by the Trustees. Such procedures include the use of
independent pricing services, which use prices based upon yields or prices of
securities of comparable quality, coupon, maturity and type; indications as to
values from dealers; and general market conditions. All debt securities with a
remaining maturity of less than 60 days are valued at amortized cost, which
approximates market.
b) FOREIGN CURRENCY TRANSLATION. The accounting records of the Portfolios
are maintained in U.S. dollars. The market value of investment securities, other
assets and liabilities and forward contracts denominated in foreign currencies
are translated into U.S. dollars at the prevailing exchange rates at the end of
the period. Purchases and sales of securities, income receipts, and expense
payments are translated at the exchange rate prevailing on the respective dates
of such transactions. Reported net realized gains and losses on foreign currency
transactions represent net gains and losses from sales and maturities of forward
currency contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions and
the difference between the amount of net investment income accrued and the U.S.
dollar amount actually received. The effects of changes in foreign currency
exchange rates on investments in securities are not segregated in the Statement
of Operations from the effects of changes in market prices of these securities,
but are included with the net realized and unrealized gain or loss on
investments.
c) INVESTMENT INCOME. Dividend income is recorded on ex-dividend date
except that certain dividends from foreign securities where ex-dividend date has
passed are recorded as soon as the fund is informed of the ex-dividend date.
Interest income, which includes the amortization of premium and accretion of
discount, if any, is recorded on an accrual basis. Dividend and interest income
is recorded net of foreign taxes where recovery of such taxes is not assured.
d) DIVIDENDS AND DISTRIBUTIONS. Distributions to shareholders for the
Emerging Growth Portfolio, International Equity Portfolio, Balanced Portfolio,
and Income Opportunity Portfolio are recorded by the Portfolio on the
ex-dividend date. It is the policy of the Standby Income Portfolio to record
income dividends daily and distribute them monthly. Distributions to
shareholders of net realized capital gains, if any, are declared and paid
annually.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital. Undistributed
net investment income may include temporary book and tax basis differences which
will reverse in a subsequent period.
13
<PAGE>
SELECT ADVISORS VARIABLE INSURANCE TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
e) FEDERAL TAXES. Each Portfolio of the Trust is treated as a separate
entity for federal income tax purposes. Each Portfolio's policy is to comply
with the provisions of the Internal Revenue Code of 1986, as amended, applicable
to regulated investment companies and to distribute substantially all its
income, including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for a federal income tax is necessary. The
following Portfolios have capital loss carryforwards expiring December 2003.
<TABLE>
<S> <C>
International Equity Portfolio $ 179,311
Income Opportunity Portfolio 54,524
Standby Income Portfolio 3,311
</TABLE>
f) FORWARD CURRENCY CONTRACTS. Each Portfolio may enter into forward
foreign currency contracts to protect securities and related receivables and
payables against fluctuations in foreign currency rates. A forward contract is
an agreement to buy or sell currencies of different countries on a specified
future date at a specified rate.
Risks associated with such contracts include the movement in the value of
the foreign currency relative to the U.S. dollar and the ability of the
counterparty to perform. The market value of the contract will fluctuate with
changes in currency exchange rates. Contracts are valued daily based on
procedures established by and under the general supervision of the Trustees of
the Portfolio Trust and the change in the market value is recorded by the
Portfolios as unrealized appreciation or depreciation of forward foreign
currency contracts. As of June 30, 1996, the Touchstone International Equity
Portfolio had an open forward foreign currency contract to deliver $17,824 on
July 2, 1996, in exchange for L11,499. As of June 30, 1996, the market value of
this contract was $17,859, resulting in unrealized appreciation of $35.
g) ORGANIZATION EXPENSE. Organization expenses were deferred and are being
amortized by each Portfolio on a straight-line basis over a five-year period
from commencement of operations. Each Portfolio's organizational fees payable
includes fees and expenses payable to Touchstone Advisors, Inc., a subsidiary of
Western-Southern, of $18,141 ($18,271 for Standby Income Portfolio). The amount
paid by the Trust on any redemption by Touchstone Advisors, Inc. or, any other
then-current holder of the organizational seed capital shares ("Initial Shares")
of the Portfolio, will be reduced by a portion of any unamortized organization
expenses of the Portfolio determined by the proportion of the number of the
Initial Shares of the Portfolio redeemed to the number of the Initial Shares of
the Portfolio outstanding after taking into account any prior redemptions of the
Initial Shares of the Portfolio.
h) OTHER. Securities transactions are recorded on a trade date basis. For
financial and tax reporting purposes, realized gains and losses are determined
on the basis of specific lot identification.
2. TRANSACTIONS WITH AFFILIATES
a) SPONSOR. Touchstone Advisors, Inc. ("Sponsor"), a subsidiary of
Western-Southern, as sponsor to the Trust, pursuant to a Sponsor Agreement
provides oversight of the various service providers to the Trust, including the
Trust's Administrator, Custodian and Transfer Agent. As Sponsor to the Trust,
Touchstone Advisors reserves the right to receive a sponsor fee from each
portfolio on an annual basis up to 0.20% of average daily net assets of that
Portfolio for its then-current fiscal year. The Sponsor Agreement may be
terminated by the Sponsor or by the Trust on not less than 30 days prior written
notice. The Sponsor has advised the Trust that it will waive all fees under the
Sponsor Agreement through April 30, 1997.
b) INVESTMENT ADVISOR. The Trust has an investment advisory agreement with
the Sponsor. Under the terms of the investment advisory agreement, each
Portfolio pays an investment advisory fee that is computed daily and paid
monthly. For the six months ended June 30, 1996, each Portfolio incurred the
following investment advisory fees equal on an annual basis to the following
percentages of the average daily net assets of the Portfolio.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Rate 0.80% 0.95% 0.70% 0.65% 0.25%
</TABLE>
Fort Washington Investment Advisors, Inc., an affiliate of the Sponsor, is
the sub-advisor for the Standby Income Portfolio.
14
<PAGE>
SELECT ADVISORS VARIABLE INSURANCE TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
c) ADMINISTRATOR AND FUND ACCOUNTANT. The Trust retains Signature
Financial Services, Inc. ("Signature") to serve as administrator and fund
accountant. Certain officers of Signature serve as officers of the Portfolios.
Signature provides administrative services necessary for the operations of the
Portfolios, including the preparation and filing of all documents required by
the Trust for compliance with applicable laws and regulations; arranging for the
maintenance of books, records and custody of the Portfolios; and paying the
compensation of the Portfolios' officers affiliated with Signature. For these
services, Signature receives from each Portfolio a fee that is computed daily
and paid monthly, equal on an annual basis to 0.16% of the aggregate average
daily net assets of all the Portfolios. Rates are reduced on a sliding scale
when combined average net assets of all Portfolios exceed $100 million. In
addition, each Portfolio is subject to a minimum annual fee of $25,000 plus
out-of-pocket expenses.
d) TRUSTEES. Each Trustee who is not an "interested person," (as defined
in the Act), of the Trust, receives in aggregate $5,000 annually plus $1,000 per
meeting attended, as well as reimbursement for reasonable out-of-pocket
expenses, from the Trust and from Select Advisors Trust A, Select Advisors Trust
C, and Select Advisors Portfolios, which are included in separate reports.
3. EXPENSE REIMBURSEMENTS
The Sponsor has agreed to waive fees and reimburse each Portfolio so that,
following such waiver of fees and reimbursement, the aggregate total operating
expenses (excluding interest, taxes, brokerage commissions and extraordinary
expenses) of each Portfolio are not greater, on an annualized basis, than the
percentage of average daily net assets of the Portfolio listed below.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Voluntary expense limit 1.15% 1.25% 0.90% 0.85% 0.50%
</TABLE>
4. PURCHASES AND SALES OF INVESTMENT SECURITIES
Investment transactions (excluding purchases and sales of U.S. government
obligations, U.S. government agency obligations and short-term investments) for
the six months ended June 30, 1996 were as follows:
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Cost of purchases $1,818,453 $2,766,216 $1,245,424 $4,400,236 $1,112,811
Proceeds from sales 1,384,977 2,538,031 983,605 3,487,875 1,290,783
</TABLE>
Purchase and sales of U.S. government obligations for the six months ended
June 30, 1996 were as follows:
<TABLE>
<CAPTION>
BALANCED INCOME OPPORTUNITY
---------- ------------------
<S> <C> <C>
Cost of purchases $ 860,360 $ 89,874
Proceeds from sales 447,890 85,624
</TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trust to issue an unlimited number of
full and fractional shares of beneficial interest.
15
